Document:

Development Agreement

 Exhibit 10.15 
  
 DEVELOPMENT AGREEMENT 
  
 THIS DEVELOPMENT AGREEMENT (“Agreement”) is made as of the 22nd day of November, 2004, by and among FOCIL HOLDINGS, LLC, a Delaware limited liability company (“FOCIL Holdings”), FOCIL-MB, LLC, a Delaware
limited liability company (“FOCIL-MB”), FOCIL-BP, LLC, a Delaware limited liability company (“FOCIL-BP”), FOCIL-WB, LLC, a Delaware limited liability company, and FOCIL-SFD, LLC, a Delaware limited liability company
(individually, an “Owner”, and collectively, “Owner” or “Owners” as the context may dictate), and CATELLUS URBAN CONSTRUCTION, INC., a Delaware corporation (“CUCI”), and CATELLUS
COMMERCIAL DEVELOPMENT CORPORATION, a Delaware corporation (“CCDC”) (CUCI and CCDC are referred to herein, collectively, as “Development Manager”). 
  
 RECITALS 
  
 A. Concurrently herewith, FOCIL Holdings, as party of the first part, and Catellus Land and Development Corporation, a Delaware corporation
(“CLDC”), Catellus Operating Limited Partnership, a Delaware limited partnership (“COLP”), Catellus Residential Group, Inc., a California corporation (“CRG”), Catellus Finance Company, LLC, a
Delaware limited liability company (“CFC”), and Mission Bay S26(a), LLC, a Delaware limited liability company, as parties of the second part, and those certain other joinder , have entered into that certain Purchase Agreement (the
“Purchase Agreement”) dated as of November 22, 2004. Capitalized and bolded terms used but not defined herein shall have such meaning set forth in the Purchase Agreement. 
  
 B. Upon the Closing under the Purchase Agreement, Owners own (directly or through wholly-owned subsidiaries) the Project
Assets, which consist of the “Mission Bay Assets”, the “West Bluffs Assets”, the “Santa Fe Depot Assets”, the “Alameda (Bayport) Venture Interest”, and the “Alameda
(Bayport) Wholly-Owned Assets” (with the express understanding that the Alameda (Bayport) Wholly-Owned Assets shall include the right to acquire land from the Community Improvement Commission of the City of Alameda, a public body corporate
and politic (“CIC“), pursuant to that certain Disposition and Development Agreement dated as of June 16, 2000, by and between CIC and Catellus Development Corporation, a Delaware corporation (“CDX“), as amended, other than the
right to acquire the “Alameda (Commercial) Assets”). 
  
 C. As used herein, each of the “Wholly-Owned Assets” and the “Alameda (Bayport) Venture Land” shall be deemed a “Property” and collectively, shall be the “Properties”. Each
of the Wholly-Owned Assets shall be deemed a “Wholly-Owned Property”, and collectively, shall be the “Wholly-Owned Properties“. The Alameda (Bayport) Venture Land shall be deemed the “Venture
Property”. The Alameda (Bayport) Venture Interest shall be deemed the “Venture Interest”. The Alameda (Bayport) Venture shall be deemed the “Venture”. 
  
 D. As used herein, the “Project” means, a Property and, to
the extent set forth in the “Development Plan” (as defined below) for such Property, the design, development, entitlement, permitting, construction, sale and marketing of such Property. The Project that relates to the Alameda (Bayport)
Venture shall be called the “Venture Project”. The Project that relates to the Mission Bay Assets shall be called the “Mission Bay Project”. The Project that relates to the West Bluffs Assets shall be called the
“West Bluffs Project”. The Project that relates to the Santa Fe Depot Assets shall be called the “Santa Fe Depot Project”. The Project that relates to the Alameda 

  

 1 

 
(Bayport) Wholly-Owned Assets shall be called the “Alameda (Bayport) Wholly-Owned Project”, and together with the Venture Project, shall be
called the “Alameda (Bayport) Project”. Each of the Mission Bay Project, the West Bluff Project, the Santa Fe Depot Project and the Alameda (Bayport) Wholly-Owned Project is herein called a “Wholly-Owned
Project”. 
  
 E. The Venture Project is owned by
the Venture in which FOCIL-BP holds the Venture Interest. Members of the Venture other than FOCIL-BP are primarily responsible for the management of the Project owned by the Venture. 
  
 F. The Owners desire to retain Development Manager to manage, supervise and complete the Wholly-Owned Projects and to manage
the Venture Interest in compliance with all “Permits” and “Requirements” (as hereinafter defined), and Development Manager has agreed to accept the engagement, on the terms and conditions set forth below. Without limiting the
generality of the foregoing, CCDC shall perform any and all marketing and sales services to be provided by Development Manager under this Agreement, including those described in Section 4.2.31. In the event CUCI shall have obtained a broker’s
license after the date hereof and delivered evidence of the same to Owner, CCDC shall be released of its obligations under this Agreement from the date of delivering such broker’s license to Owner. 
  
 IN LIGHT OF THE FOREGOING FACTS, and in consideration of the mutual
agreements contained herein, the Owners and Development Manager hereby agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 Specific Terms. The following terms shall, when used herein, have the meaning set forth below: 
  
 “Affiliate” shall mean, with respect to a
person or entity, means (1) any officer, director, trustee, shareholder, member, partner or relative within the third degree of kindred of the person or entity in question; and (2) any other corporation, partnership, limited liability company, trust
or other person or entity which directly or indirectly controls, or through one or more intermediaries, is controlled by, or is under common control with the person or entity in question. For the purposes of this definition,
“control” means the possession, directly or indirectly, of (x) the power to direct or cause the direction of management and policies, whether through the ownership of voting securities or by contract or otherwise or (y) a 25% or
more ownership interest. 
  
 “Architect” means any architect designated by Development Manager and (a) reasonably approved or deemed approved from time to time by Owner with respect to such a Wholly-Owned Project, and (b) approved by the Venture with
respect to the Venture Project to the extent approval is required under the Venture Agreement or otherwise. 
  
 “Authorized Representative” of a person means any officer, agent, manager, employee, independent contractor or other
representative of such person acting within the actual or apparent authority granted by such person or who is otherwise authorized to perform the act in question on behalf of such person. 
  

 2 

 “Bankruptcy/Dissolution Event” with respect to a person, means the
commencement or occurrence of any of the following with respect to such person (or if any of the following is involuntary with respect to such person and the same is not dismissed within 90 days): (1) a case under Title 11 of the U.S. Code, as now
constituted or hereafter amended, or under any other applicable federal or state bankruptcy law; (2) the appointment of (or a proceeding to appoint) a trustee or receiver or an attachment, execution or other judicial seizure of all or substantially
all of the person’s assets; (3) a declaration of insolvency in a judicial action; (4) a general assignment for the benefit of creditors; or (5) a dissolution or liquidation. 
  
 “Business Day” means Monday through Friday, excluding holidays recognized by the United
States government or the State of California. 
  
 “Change in Control” means any of the following: (1) Development Manager is no longer indirectly wholly-owned by CDX, or an Affiliate of CDX; (2) there has been a change in a majority of the members of the Board of Directors
of CDX (compared to the composition of the Board of Directors of CDX as of the date that is twelve (12) months prior to the date of such change), (3) there has been a change in the composition of 51% of CDX’s shareholders such that a sole
“Person” (as hereinafter defined), together with Affiliates of such Person, controls 51% or more of the voting stock of CDX, or (4) a sale of all or substantially all of the assets of CDX. 
  
 “Collateral Agreement” means (1) the
Purchase Agreement, (2) the “CF Capital Financing Documents” (as hereinafter defined), and (3) the “CFC Financing Documents” (as hereinafter defined), and any amendment or amendments made at any time or times heretofore or
hereafter to any of such agreements, and any written agreement, instrument or document between any one or more of each Owner and each Owner Affiliate, on the one hand, and Development Manager, on the other hand (or any instrument by one for the
benefit of the other), made or entered into after the date hereof, under, pursuant to or in connection with this Agreement, including any amendment or amendments made at any time or times hereafter to any of such agreements made or entered into
after the date hereof. 
  
 “Commercially
Reasonable Efforts” means diligent and professional efforts consistent with the standards and practices of Development Manager and its respective Affiliates with respect to the subject Projects for the previous twelve (12) months prior to
the date hereof or such other standards and practices as reasonably approved by Development Manager and Owner. The requirement that Development Manager shall use Commercially Reasonable Efforts to complete an assigned task shall in no event be
deemed to reduce Development Manager’s obligation to complete such task to the extent completion thereof is within the reasonable control of Development Manager and shall require Development Manager to continue to exercise such efforts even if
completion will require more time or personnel, or both, than originally contemplated in the initial estimates or projections of required time or personnel, subject to Section 5.3 hereof. The determination of Commercially Reasonable Efforts shall
take into account (x) the timeliness of Owner’s response to Development Manager with respect to any request for Owner’s consent or approval hereunder, provided that Development Manager shall have provided timely notice of any “Urgent
Development Matters” (as hereinafter defined), and (y) “Force Majeure” (as hereinafter defined). 
  

 3 

 “Completion Evidence” for each Project means, to the extent reasonably
appropriate and consistent with the standards and practices of Development Manager or its Affiliates with respect to the subject Projects for the previous twelve (12) months prior to the date hereof, all of the following items: (i) a certificate
from the Engineer, in the A.I.A. form reasonably satisfactory to, and addressed to, (a) Owner with respect to a Wholly-Owned Project, and (b) the Venture with respect to the Venture Project, and certifying substantial completion in accordance
herewith of the Project and identifying all “Punch List Items” (as hereinafter defined) and the estimated cost thereof (which shall not exceed $100,000 in the aggregate); (ii) all licenses, permits and other approvals required to be
obtained in connection with the development, entitlement, construction, and completion of such Project; (iii) with respect to the Mission Bay Project, any information required under the “Acquisition Documents” (as hereinafter defined) to
obtain reimbursements; (iv) final and unconditional lien waivers from the contractors and all subcontractors and materialmen whose contracts are in excess of $100,000.00 (or a final and unconditional lien waiver for any amount, if such lien waiver
is required by a governmental entity in order to either obtain reimbursement or certificate of completion); (v) an assignment, if available, of any applicable warranties or guarantees provided by contractors and subcontractors to Owner; (vi)
evidence of release of any outstanding performance or labor and materials bonds (but not warranty bonds) or repayment/refund or release of any other security (including cash deposits, letters of credit or financial security mechanisms), but only to
the extent an Owner has provided, guaranteed or provided an indemnity with respect to any such bond or other security; (vii) at Owner’s request, complete as-built plans and specifications for all improvements in such Project; (viii) unless
expressly waived by Owner in writing, an ALTA as-built completion survey in form reasonably acceptable and certified to Owner and a title company designated by Owner and to the Project Lender; (ix) with respect to the Wholly-Owned Projects only, at
Owner’s request, an updated ALTA Form B (1970, amended 10/17/70) extended coverage owner’s policy of title insurance from such title company for the full value of the land and improvements in such Project in form and subject to the title
exceptions shown in the existing title policy issued to Owner in connection with the acquisition of the Project and such additional title exceptions acceptable to Owner in its good faith and reasonable judgment; (x) all evidence of completion as may
be required by the Project Lender, if any, under the Project Financing Documents for such Project; and (xi) any other similar evidence of completion as may be reasonably appropriate. Notwithstanding the foregoing, with respect to any infrastructure
construction or work at any Project, Completion Evidence shall not include (viii) or (ix) above, and (vii) above shall be satisfied by marked annotated record drawings. 
  
 “Contractor” means the general contractor, if any, designated by Development Manager and
(a) reasonably approved or deemed approved by Owner with respect to a Wholly-Owned Project, and (b) approved by the Venture with respect to the Venture Project to the extent approval is required. 
  
 “Cure Period” means (1) five (5) Business
Days after written notice specifying the nature of a default or breach in connection with a monetary default that is not a “Noncurable Default” (as hereinafter defined); (2) subject to the following sentence, thirty (30) days after written
notice specifying the nature of a default or breach under this Agreement or a Collateral Agreement, in connection with a non-monetary default that is not a Noncurable Default (provided, however, that if such non-monetary default cannot reasonably be
cured within such 30-day period, and the defaulting party promptly commences the cure of such default and diligently pursues such cure to completion, then such 30-day period shall be extended to the extent reasonably necessary to 

  

 4 

 
complete the cure (but in no event after the date that is 180 days after such written notice unless Owner expressly agrees in writing to extend such date);
(3) in the first instance of a breach of a covenant constituting gross negligence, fraud or willful misconduct other than an Excusable Employee Wrongful Event (a ”First Instance Breach”), (i) if such breach is a monetary breach,
five (5) Business Days after written notice to Development Manager of such breach or, (ii) if such breach is a non-monetary breach, thirty (30) days after written notice to Development Manager of such breach, and (4) no period at all for a
Noncurable Default. Notwithstanding the preceding sentence, to the extent that any of the Requirements provide for a cure period for a non-monetary default which is shorter than the cure period for non-monetary defaults described in the preceding
sentence (the “Non-Monetary Cure Period“), then the shorter cure period provided by such Requirement shall apply to such non-monetary default, except to the extent that the cure is accepted by all third parties after the expiration
of such shorter cure period and before the expiration of the Non-Monetary Cure Period. A “Noncurable Default” means a default that is not capable of being cured and includes each of the following: (a) a breach of a covenant
constituting gross negligence, fraud or willful misconduct other than a First Instance Breach and other than an Excusable Employee Wrongful Event, (b) a notice of a “Development Manager Default” (as hereinafter defined) pursuant to Section
10.1 if six (6) notices of a Development Manager Default (whether such notices relate to the same or different Development Manager Defaults) have been given during the immediately preceding twelve (12) month period, provided that Owner sends a
written notice to Development Manager that such Development Manager Default has occurred, or (c) a Bankruptcy/Dissolution Event. Notwithstanding the foregoing, clause (b) above shall not apply until the date that is twelve (12) months following the
date of this Agreement. 
  
 “Delinquent
Fee Payments” means payments, if any, on account of the Base Development Fee, the Development Incentive Fee or the West Bluffs Incentive Fee which, as of the date on which Owner terminates this Agreement, (a) Owner shall be obligated to
have already paid to Development Manager, and (b) Owner shall have failed to have already paid to Development Manager. 
  
 “Design Team” means with respect to each Project, (1) the Architect, Engineer, Land Planner, Landscape Architect and
Soils Engineer for such Project and (2) Development Manager if (a) such Project is a Wholly-Owned Project, or (b) Owner as a member in the Venture that owns such Project has a right to participate on the Design Team for the Venture Project.

  
 “Development Plan” means,
with respect to each Property or any portion of a particular Project (e.g., each separate portion of the Mission Bay Project may have a separate dedicated plan which shall constitute a separate Development Plan for such portion of the Mission Bay
Project and all of such separate dedicated plans, collectively, will be the Development Plan for the Mission Bay Project), the development plan attached as Exhibit ”A”, as initially prepared and as the same may be more
fully-developed or revised from time to time, (a) with respect to a Wholly-Owned Property, as directed by such Owner or as proposed by Development Manager and approved by Owner, and (b) with respect to the Venture Property, (i) pursuant to the
Venture Agreement, (ii) as directed by Owner and approved by the Venture to the extent the consent of the Venture is required, or (iii) as proposed by Development Manager and approved by Owner and by the Venture to the extent the consent of the
Venture is required. Until a Project-specific Development Plan shall have been prepared, the Development Plan for such Project shall be the plan implied to achieve the revenue and expenditures set forth in the Project Budget for such Project and the
milestones set forth 

  

 5 

 
in the Project Schedule for such Project. Each Party shall use Commercially Reasonable Efforts to finalize each Development Plan within ninety (90) days
after the date of this Agreement. 
  
 “Development Team” means, with respect to each Project, (1) the Architect, Contractor and Engineer for such Project and (2) each of Development Manager and Owner if (a) such Project is a Wholly-Owned Project, or (b) if
Owner as a member in the Venture has a right to participate on the Development Team for the Venture Project. 
  
 “Drawings and Specifications” for any Property means all blueprints, schematic renderings, architect’s drawings,
civil and landscape drawings, specifications, written descriptions and similar items for such Property, which have been or may be proposed by Development Manager and reasonably approved by (a) Owner with respect to a Wholly-Owned Project, as the
same may be revised from time to time as proposed by Development Manager and approved by such Owner and as set forth in such Development Plan, and (b) the Venture with respect to the Venture Project, as the same may be revised from time to time upon
the direction of Development Manager and approval of the Venture if approval is required, and as set forth in such Development Plan. 
  
 “Engineer” means, with respect to each Project, the engineer or engineers for infrastructure, structural, electrical,
mechanical and civil matters designated by Development Manager and (a) reasonably approved or deemed approved from time to time by Owner with respect to a Wholly-Owned Project, and (b) approved by the Venture with respect to the Venture Project, if
approval is required. 
  
 “Environmental Law” or “Environmental Laws” means any “Super Fund” or “Super Lien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or
decree, regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials as may now or at any time hereafter be in effect, including the following, as the same may be amended or replaced from time to time, and
all regulations promulgated thereunder or in connection therewith: the Super Fund Amendments and Reauthorization Act of 1986 (“SARA”); the Comprehensive Environmental Response, Compensation and Liability Act of 1980
(“CERCLA”); the Clean Air Act (“CAA”); the Clean Water Act (“CWA”); the Toxic Substances Control Act (“TSCA”); the Solid Wastes Disposal Act (“SWDA”), as amended by
the Resource Conservation and Recovery Act (“RCRA”); the Hazardous Waste Management System; and the Occupational Safety and Health Act of 1970 (“OSHA”). 
  
 “Final Completion” as to each Project means (1) the completion of construction of such
Project (including all Punch List Items) in a good and workmanlike manner, on a lien-free basis, free from defect, in accordance in all material respects with the Requirements, (2) the issuance of all required Permits (including all required
governmental approvals) in relation to such Project to be obtained by (a) Development Manager on behalf of Owner with respect to each Wholly-Owned Project, and (b) the Venture with respect to the Venture Project, (3) delivery to Owner of the
applicable Completion Evidence with respect to such Wholly-Owned Project, or (4) the sale of the Property with respect to such Project. 
  
 “Force Majeure” shall mean unavoidable labor strikes or disputes, unusual and unforeseeable delay in transportation or
availability of materials, adverse weather conditions not reasonably capable of being anticipated, casualties or causes beyond Developer’s reasonable control 

  

 6 

 
which cause construction work stoppage or delays for the Project, written notice of which shall have been provided by Development Manager to (1) Owner within
five (5) Business Days after Development Manager becomes aware of the same and (2) the Project Lender within the time period required by Project Lender in any of the documents related to the Project Financing; provided, however, Force Majeure shall
not include shortages of labor or materials as a result of Development Manager’s acts or omissions. 
  
 “Hazardous Materials” means any substance or material that is described as a toxic or hazardous substance, waste or
material or a pollutant or contaminant, or words of similar import, in any of the Environmental Laws, and includes asbestos, petroleum (including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or
synthetic gas usable for fuel, or any mixture thereof), petroleum products, polychlorinated biphenyls, urea formaldehyde, flammable explosives, radon gas, radioactive matter, medical waste, and chemicals which may cause cancer or reproductive
toxicity. 
  
 “Insurance
Requirements” means all terms of any insurance policies covering or applicable to a Property, all requirements of the issuer of any such policy and all orders, rules, regulations and other requirements of any insurance, regulatory or
governing body applicable to such Property. 
  
 “Land Planner” means, with respect to each Project, the land planner designated by Development Manager and (a) reasonably approved or deemed approved from time to time by Owner with respect to a Wholly-Owned Property, and
(b) approved by the Venture with respect to the Venture Property to the extent approval is required. 
  
 “Landscape Architect” means, with respect to each Project, the landscape architect designated by Development Manager and
(a) reasonably approved or deemed approved from time to time by Owner with respect to a Wholly-Owned Project, and (b) approved by the Venture with respect to the Venture Project to the extent approval is required. 
  
 “Laws” means all procedural and substantive
federal, state and local laws, judicial decisions, statutes, constitutions, moratoria, initiatives, referenda, ordinances, resolutions, rules, regulations, standards, orders and other governmental requirements (including those relating to the
environment, mold, health and safety, or handicapped persons), applicable to the Property, or the ownership, use, operation, maintenance, sale, lease or other disposition thereof or portion thereof, including all Environmental Laws. 
  
 “Parties” means any Owner and Development
Manager. 
  
 “Party” means any
Owner or Development Manager. 
  
 “Permits” means, with respect to each Project, all permits, licenses, conditional use permits, zoning rights, easements, approvals, entitlements, and other authorizations required (whether already issued or to be obtained)
in connection with the ownership, land use, development, subdivision, sale, construction, use, excavation, demolition, leasing, operating or maintenance of the Property or such Project pursuant to the Development Plan adopted for such Project,
including the following to the extent required to implement the Development Plan or pursuant to the Requirements, (1) any development agreement, indemnity, surety or performance bond or other 

  

 7 

 
similar assurances to any governmental authority in connection with the obtaining of entitlements or other governmental approvals for such Project; (2) any
easements, approvals, utility connection permits, or requirements to obtain utilities and access; (3) any subdivision or parcel map required in connection with any development, sale, lease or financing; (4) any approvals required under Laws; and (5)
all approvals required by any governmental authority with jurisdiction over such Project. 
  
 “Person” means a natural person, corporation, limited or general partnership, limited liability company, tenancy in
common, joint venture, association, business trust, any other organization, and any combination of the foregoing. 
  
 “Project Agreements” means, with respect to each Project, any and all sale agreements (including any purchase and sale
agreements relating to any Property or portion thereof), leases, rental agreements, operating agreements, the “Alameda (Bayport) Venture Agreement”, loan agreements, mortgages, deeds of trust, security instruments, easement
agreements, restrictive covenants, construction contracts, and any other agreements encumbering, affecting or otherwise relating to such Project or the subject Property or any portion thereof with respect to such Project. 
  
 “Project Budget” for the Project means the
budget (including sources and uses) for a particular Project or any portion of a particular Project (e.g., each separate portion of the Mission Bay Project likely will have a separate dedicated budget which shall constitute a separate Project Budget
for such portion of the Mission Bay Project and all of such separate dedicated budgets, collectively, will be the Project Budget for the Mission Bay Project) attached hereto as Exhibit “B”, as initially prepared and as the same may
be revised from time to time, (a) with respect to a Wholly-Owned Project, as directed by such Owner or as proposed by Development Manager and approved by Owner, and (b) with respect to the Venture Project, (i) as provided in the Venture Agreement,
(ii) as directed by Owner and approved by the Venture to the extent approval is required, or (iii) as proposed by Development Manager and approved by Owner and by the Venture to the extent the approval of the Venture is required. 
  
 “Project Financing” means any financing
obtained by (a) Owner with respect to a Wholly-Owned Project or the Venture Interest, and (b) the Venture with respect to the Venture Project owned by the Venture, in connection with the acquisition, development or operation of a Property and any
refinancing thereof, including, collectively, the financing (the “Catellus Financing”) obtained from CF Capital, LLC, a Delaware limited liability company (“CF Capital”) (the “CF Capital Financing”)
and CFC (the “CFC Financing“), to the extent such financing is permitted under the CF Capital Financing Documents and/or the CFC Financing Documents. 
  
 “Project Financing Documents” means any and all documents evidencing, securing or otherwise
governing any Project Financing, including any and all documents (the “Catellus Financing Documents“) evidencing, securing or otherwise governing the CF Capital Financing (the “CF Capital Financing Documents”) and
the CFC Financing (the “CFC Financing Documents”). 
  
 “Project Lender” shall mean any lender under any Project Financing, including without limitation, CF Capital and CFC with respect to the Catellus Financing. 
  
 “Project Schedule” for a Project means the
schedule for the entitlements, design, delivery, construction and development of such Project or any portion of a particular Project (e.g., 

  

 8 

 
each separate portion of the Mission Bay Project may have a separate dedicated schedule which shall constitute a separate Project Schedule for such portion
of the Mission Bay Project and all of such separate dedicated schedules, collectively, will be the Project Schedule for the Mission Bay Project), in the form attached hereto as Exhibit “C”, as initially prepared and as the same may
be more fully-developed or revised from time to time, (a) with respect to a Wholly-Owned Project, as directed by such Owner or as proposed by Development Manager and approved by Owner, and (b) with respect to the Venture Project, (i) as provided in
the Venture Agreement, (ii) as directed by Owner and approved by the Venture to the extent approval is required, or (iii) as proposed by Development Manager and approved by Owner and by the Venture to the extent the consent of the Venture is
required. Until a Project-specific Project Schedule shall have been prepared, the Project Schedule for such Project shall be the schedule implied to achieve the revenue and expenditures set forth in the Project Budget for such Project and the
milestones set forth in the Development Plan for such Project. The Parties shall use Commercially Reasonable Efforts to finalize each Project Schedule ninety (90) days after the date of this Agreement. 
  
 “Punch List Items” for each Project means
such items of work on such Project as in the judgment of the Design Team, or any member thereof, remain incomplete or incorrectly done at the time the Design Team, or any member thereof, provides written notice that the construction and equipping
has been substantially completed in accordance with the Drawings and Specifications to (a) Owner, with respect to each Wholly-Owned Project, and (b) the Venture with respect to the Venture Project. 
  
 “Requirements” means, with respect to each
Project, the terms and conditions of each of the following, as applicable to such Project: a) this Agreement, and any Collateral Agreements, (b) the Development Plan, the Project Budget, the Project Schedule, the Insurance Requirements, the Project
Agreements and any Drawings and Specifications for such Project, (c) the requirements under or for any community facility or finance district relating to such Project, (d) Laws and Permits relating to such Project in accordance with the applicable
Development Plan, the Project Budget and the Project Schedule, (e) any purchase and sale agreements with respect to any Property or portion thereof, and (f) with respect to the Venture Project, the Venture Agreement. 
  
 “SB 800” means California Civil Code
Sections 895 through 945.5 or Title 7, Part 2 of Division 2 of the California Civil Code. 
  
 “Soils Engineer” means, with respect to each Project, the civil engineer designated by the Development Manager and (a)
reasonably approved or deemed approved from time to time by Owner with respect to a Wholly-Owned Project, and (b) the Venture with respect to the Venture Project to the extent approval is required. 
  
 ARTICLE II 
 ENGAGEMENT AND TERM 
  
 2.1 Appointment. Subject to and in accordance with the terms of this Agreement (including the limitations set forth in Section 5.3), Owners hereby engage the services of Development Manager, and Development
Manager hereby accepts the engagement to (a) research, plan, arrange, supervise, administer, coordinate, monitor and cause the Wholly-Owned Projects to be completed and sold on behalf of Owner as provided in the Development Plans, and (b) with
respect 

  

 9 

 
to the Venture Interest, to fulfill any non-monetary obligations of the Owner thereof. Subject to Section 5.3, Development Manager shall fully and faithfully
discharge its obligations and responsibilities hereunder in a commercially reasonable manner, and shall devote sufficient time and attention to ensure the discharge of its duties under this Agreement. Development Manager shall use Commercially
Reasonable Efforts to coordinate and manage the Wholly-Owned Projects and the Venture Interest in accordance in all material respects with the Requirements, including the Development Plans, and shall use Commercially Reasonable Efforts to cause the
Venture Project to be coordinated and managed in accordance in all material respects with the Requirements, including the Development Plans, and, subject to Section 5.3, shall at all times use Commercially Reasonable Efforts to promote and protect
the best interests of Owner as a member in the Venture, the Projects and the Property. Development Manager’s authority to act on behalf of each Owner is strictly limited to that expressly delegated herein. 
  
 2.2 Term. The term (“Term”) of this Agreement shall
be deemed to commence as of the date hereof and, unless earlier terminated as provided herein, shall expire on the date that is ten (10) years from the date hereof; provided, however, that Development Manager and Owner may by mutual written
agreement extend the Term as may be necessary or advisable to provide for completion of all Development Manager’s duties hereunder. 
  
 2.3 Relationship. For purposes of this Agreement, Development Manager shall be an independent contractor of the Owners and not an agent, employee,
partner or joint venturer of the Owners or any one or more of the Owners, except to the extent that Development Manager is specifically authorized in writing by Owner to execute agreements on behalf of Owner and to act as an agent of Owner as
expressly set forth in such writing. 
  
 ARTICLE III

 REPRESENTATIONS AND WARRANTIES 
  
 3.1 Representations and Warranties of Development Manager. As of the date of this Agreement, Development Manager hereby represents and warrants to
each Owner as follows: 
  
 3.1.1 Formation;
Qualification. Development Manager is a Delaware corporation, duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business and is in good standing under the laws of each State
where each individual Property is located. 
  
 3.1.2 Authorization; Binding Agreement. Development Manager has taken all corporate action required to allow Development Manager to enter into this Agreement. This Agreement constitutes a legal, valid and binding obligation of
Development Manager, and neither its execution nor performance violates the requirements of any other agreement to which Development Manager is a party or is otherwise bound. 
  
 3.2 Representations and Warranties of the Owners. As of the date of this Agreement, each Owner hereby represents and
warrants to Development Manager as follows: 
  
 3.2.1 Formation; Qualification. Such Owner is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business and is in good standing under the
laws of the State of California. 
  

 10 

 3.2.2 Authorization; Binding Agreement. Such Owner has taken all limited liability
company action required to allow such Owner to enter into this Agreement, and this Agreement constitutes a legal, valid and binding obligation of such Owner. 
  
 ARTICLE IV 
 DUTIES AND SERVICES OF
DEVELOPMENT MANAGER 
  
 4.1 Projects. 
  
 4.1.1 Generally. Without limitation on the
obligations of Development Manager set forth below, Development Manager shall, subject to Section 5.3, (a) use Commercially Reasonable Efforts to carry out in a timely manner each Development Plan, including Final Completion and all warranty work,
for each Wholly-Owned Project in accordance in all material respects with applicable Requirements, the applicable Project Schedule and the applicable Project Budget, (b) use Commercially Reasonable Efforts to cause the carrying out in a timely
manner of the Development Plan, including Final Completion and warranty work, for the Venture Project in accordance in all material respects with applicable Requirements, the applicable Project Schedule and the applicable Project Budget subject to
any increases as may be necessary to achieve Final Completion and complete any warranty work, and (c) use Commercially Reasonable Efforts to represent Owner in connection with the planning, design, permitting, development, construction, marketing
and sale of the Properties. Subject to Section 5.3, Development Manager shall use Commercially Reasonable Efforts to perform all functions necessary to complete the Wholly-Owned Projects and to fulfill Owner’s non-monetary obligations with
respect to the Venture Project in accordance in all material respects with the Requirements together with such additional services and responsibilities as are reasonably within the general scope of services and responsibilities under this Agreement
and are designated from time to time by Owner. Subject to Section 5.3, Development Manager shall, at all times, use Commercially Reasonable Efforts to exercise good faith and diligent and professional efforts to protect the best interests of the
Properties, of Owner as a member in the Venture and Owners. Subject to Section 5.3, Development Manager shall use Commercially Reasonable Efforts to diligently pursue the Development Plans and shall make its personnel of its Affiliates available to
Owners to the extent reasonably necessary in order that Development Manager obligations may be fully discharged in a timely manner. Notwithstanding anything to the contrary contained in this Agreement, Development Manager shall allocate the tasks to
be performed by Development Manager under this Agreement between the employees and personnel of Development Manager and its Affiliates, on the one hand, and independent contractors and consultants, on the other hand, in a manner that is consistent
with the standards and practices of Development Manager and its Affiliates with respect to such allocation for the twelve (12) months prior to the date hereof (“Development Manager’s Current Outsourcing Standards”). Attached
hereto as Schedule “4.1.1” is a list of tasks allocated to the employees and personnel of Development Manager and its respective Affiliates with respect to the subject Projects. The cost of engaging any independent contractors and
consultants for a task shall be paid by Owner if included in a “Funding Request” (as hereinafter defined) to the extent the engagement of an independent contractor or consultant for such task is either (i) not listed on Schedule
“4.1.1” or (ii) consistent with Development Manager’s Current Outsourcing Standards. To the extent the cost of engaging any independent contractors and consultants for a task is either (i) listed on Schedule
“4.1.1” or (ii) inconsistent with the Development Manager’s Current Outsourcing Standards, such cost (each, an “Unreimbursable Cost”) shall not be paid by Owner (it being understood that such costs are among those
to be borne 

  

 11 

 
by Development Manager and covered by payment to Development Manager of the “Base Development Fee” [as hereinafter defined]). Development Manager
shall use diligent efforts to keep each Owner fully informed regarding all material matters relating to the Property and the Project owned by such Owner, and, where applicable, the Venture Interest (and any other specific matters as Owner may
reasonably request from time to time) and shall so consult on a monthly basis (unless Owner waives in writing the need for a particular monthly meeting), at all reasonable times requested by Owner, and without limitation on the foregoing, shall
immediately inform Owner with respect to any major or significant matters related to the Properties or the Projects owned by such Owner, and where applicable, the Venture Interest owned directly or indirectly by such Owner. 
  
 4.1.2 Development Plans; Project Budgets; Project
Schedules. Each Development Plan, Project Budget and the Project Schedule with respect to each Project shall be attached hereto as Exhibit “A”, Exhibit “B” and Exhibit “C”, respectively, as the
same shall be finalized in accordance with this Agreement. The parties recognize that the Development Plans and the Project Schedules so attached contain only major milestones and require supplementation to be more complete. Development Manager
shall within the time frame set forth in the initial Project Budget cause each Project Schedule to be supplemented and submitted to Owner for the review and approval of Owner. In the event Owner does not approve such supplement or any subsequent
modifications thereto, Owner shall give Development Manager written comments detailing Owner’s disapproval, and Development Manager shall have the same revised to Owner’s reasonable satisfaction. Development Manager shall (a) prepare and
deliver to Owner an annual update to the Development Plan, the Project Budget and the Project Schedule for such Wholly-Owned Project, and (b) use Commercially Reasonable Efforts to cause to be prepared and delivered to Owner an annual update to the
Development Plan, the Project Budget and the Project Schedule for the Venture Project. With respect to each Wholly-Owned Project, Development Manager shall submit each such updated annual Development Plan, Project Budget and Project Schedule for
Owner’s prior written approval. In the event Owner does not approve any such updated annual Development Plan, Project Budget or Project Schedule or any subsequent modifications thereto, Owner shall provide Development Manager written comments
detailing Owner’s disapproval, and Development Manager shall have the same revised to Owner’s reasonable satisfaction. 
  
 4.1.3 Drawings and Specifications. To the extent set forth in each Development Plan, any Property upon which improvements are to be
constructed shall be constructed pursuant to the Drawings and Specifications. The Parties recognize that the drawings and specifications listed on the schedule attached as part of such Development Plan are preliminary in nature and require revision
and supplementation to constitute construction documents for use in constructing any particular Property, to the extent so required. Development Manager shall (a) promptly cause such drawings and specifications to be revised and supplemented (as and
when needed to comply with the applicable Project Schedule) and submitted to Owner for the review and approval of Owner with respect to the Wholly-Owned Projects, and (b) use Commercially Reasonable Efforts to cause such drawings and specifications
to be revised and supplemented (as and when needed to comply with the applicable Project Schedule) and cause to be submitted to Owner with respect to the Venture Project. With respect to the Wholly-Owned Projects, in the event that Owner does not
approve such drawings and specifications, revisions or supplements, or any subsequent modifications thereto, Owner shall give Development Manager written comments detailing Owner’s disapproval, and Development Manager shall have such drawings
and specifications revised to Owner’s satisfaction. 
  

 12 

 4.1.4 Work on Non-Owned Property. Development Manager shall perform and cooperate
with Owner or the Venture, as the case may be, with respect to any work to be done on any portion of any Property pursuant to the Development Plan before the acquisition, after the sale or after the contribution to the Venture of any portion of any
Property. 
  
 4.2 Specific Duties and Services with Respect to
the Wholly-Owned Projects. Development Manager shall perform its services and carry out the responsibilities with respect to the Wholly-Owned Projects as set forth herein, together with such additional services and responsibilities as are
reasonably within the general scope of services and responsibilities under this Agreement and are designated from time to time by such Owners with respect to the Wholly-Owned Projects. The duties and services of Development Manager during the Term
shall include the following with respect to the Wholly-Owned Projects: 
  
 4.2.1 Surveys; Soil Tests; Etc. To the extent reasonably appropriate in order to achieve Final Completion, arrange for the preparation of boundary line surveys, ALTA surveys, as built surveys, topographic
surveys, soil tests, and other matters related to the usability of the Wholly-Owned Properties and any individual lots contained within the Wholly-Owned Properties, the development of any Wholly-Owned Project, and the sale of any or all of the
Wholly-Owned Properties. 
  
 4.2.2
Recommendations; Hiring and Replacing Professionals. Prepare, advise and assist with recommendations for the development, entitlement, permitting, construction, sale and marketing of the Wholly-Owned Properties, to the extent set forth in the
respective Development Plans, and submit to Owner any and all recommendations relating to services to be performed by the members of the Design Team and any others for the Wholly-Owned Properties, all of which shall be independent contractors. Owner
acknowledges that, in certain circumstances, it may be appropriate to contract for the performance of services with an Affiliate of Development Manager; provided, however, that in each such instance, the services shall be on terms no less favorable
to Owner than those reasonably available from unaffiliated parties and Owner shall have reasonably approved such contract. Notwithstanding anything to the contrary contained herein, any decision by Owner to amend, terminate or exercise any remedy
under any contract between Owner and an Affiliate of Development Manager may be made unilaterally by Owner in accordance with the terms and conditions of the particular contract (but the foregoing will not reduce the obligation of Development
Manager to enforce such contracts and to keep Owner informed of the status thereof and of any rights that may be exercised thereunder). The identity, affiliation , rates and contracts of the members of the Design Team or any others to be engaged by
Owner (with a contract price in excess of $100,000.00, which price shall include any termination fees or penalties) with respect to any Wholly-Owned Property must be approved by Owner in advance. Development Manager shall, for all contracts with a
payment in excess of the lesser of $1,000,000 or 15% of the total cost of the Wholly-Owned Property subject to such contract (excluding the cost of the land for such Property) ensure that all proposed contractors or providers complete the
“Request for Qualifications” form attached hereto as Exhibit “D”, which shall be submitted to Owner for its approval together with background checks and other investigations reasonably satisfactory to Owner and performed
by an investigation service reasonably approved by Owner. The Parties hereby acknowledge and anticipate that with respect to the Mission Bay Project the Requirements may require an alternative form to the “Request for Qualifications” form
attached hereto as Exhibit “D”. If the Requirements require that Development Manager use a form other than the “Request for Qualifications” form 

  

 13 

 
attached hereto as Exhibit “D”, Development Manager shall promptly notify Owner of such in writing and the use of any alternative form shall
not limit Owner’s approval rights with respect to the form of any agreement with such contractor or provider pursuant to Section 4.2.8 hereof. 
  
 4.2.3 Subdivision of Wholly-Owned Property. If subdivision is contemplated in the Requirements with respect to any Property,
obtaining a final recorded subdivision of such Property with separate legal parcels as may be approved by Owner with respect to such Wholly-Owned Property. Before Development Manager submits to appropriate governmental authorities a tentative
subdivision map or other material application (but not supporting documents and information not requested by Owner) required to obtain compliance with the Subdivision Map Act (“Subdivision Materials”), Development Manager shall
obtain such Owner’s written approval of the Subdivision Materials which approval will not be unreasonably withheld or delayed. 
  
 4.2.4 Non-Construction Activities. Use Commercially Reasonable Efforts to procure, direct, coordinate, monitor, administer,
supervise, and implement all aspects of each Wholly-Owned Project, such as planning, preparation and design, including all architectural work, all engineering (such as hydrological, traffic, civil, environmental, landscape, soils and structural
engineering) and all other non-construction activities required for the diligent, professional planning, construction and operation of each Wholly-Owned Project in accordance with the Requirements. 
  
 4.2.5 Recommendations Regarding Savings. Provide
recommendations on the relative feasibility of different construction methods, the availability of labor, equipment and materials, the costs of alternative designs and materials, and other issues relating to costs and possible savings, and, without
limitation, recommend and advise Owner concerning possible change orders and material cost savings where appropriate. 
  
 4.2.6 Permits; Meetings. Use Commercially Reasonable Efforts to obtain or cause to be obtained and administer compliance with all
applicable Permits as and when required. Development Manager shall complete and present to Owner all proposed applications for Permits for Owner’s review, approval and signature. Development Manager shall notify Owner in advance of, and shall
attend (or will cause one or more members of the Development Team to attend [so long as the same is consistent with standards and practices of Development Manager and its Affiliates with respect to such meetings for the twelve (12) months prior to
the date hereof]), all meetings of regulatory bodies, redevelopment agencies, civic associations and other groups in connection with the Permits or otherwise affecting any Wholly-Owned Project and shall keep Owner advised and well informed of all
material developments in connection with such Permits. Without obtaining the consent of Owner, in no event shall Development Manager agree to any material dedication, cost, liability, condition or limitation with respect to the issuance of a Permit.

  
 4.2.7 Bids. Direct and supervise the
procurement of bids for the development and construction of each Wholly-Owned Project as set forth in the Development Plan for such Project, tabulate and analyze bid results, and submit recommendations to Owner regarding the award of construction
contracts and subcontracts relating to each Wholly-Owned Project. Development Manager shall not hold itself out as having the authority to approve any contract or agreement without the prior written approval of Owner. Without limitation, all
contracts and subcontracts for capital improvements, goods and services requiring payments exceeding $100,000 in the aggregate 

  

 14 

 
shall be awarded on the basis of competitive bidding, solicited in the following manner (or such other manner as approved in writing by Owners): 

 
 (a) A minimum of three (3) written bids from qualified
providers reasonably satisfactory to Owner shall be requested for each contract or purchase, provided that Owner acknowledges that, with respect to the Mission Bay Project, the Requirements may not require that Development Manager obtain at least
three (3) written bids from qualified providers for each contract or purchase. All potential providers of services shall be experienced in the applicable area of services to be covered by the potential contract, shall be in good standing in the
community and have a reputation for completing work in a timely and workmanlike manner. The Parties hereby acknowledge and anticipate that with respect to the Mission Bay Project the Requirements may not require that Development Manager obtain at
least three (3) written bids from qualified providers for each contract or purchase. Notwithstanding the foregoing, if Development Manager does not obtain at least three (3) written bids from qualified providers reasonably satisfactory to Owner for
such contract or purchase, Development Manager shall promptly notify Owner of such in writing and the acceptance of such bid obtained shall not limit Owner’s rights with respect to the form of any agreement with respect to such bid pursuant to
Section 4.2.8 hereof. 
  
 (b) Each bid will be
solicited in a consistent format reasonably approved by Owner so that uniformity will exist in the bid quotes. 
  
 (c) Subject to Section 4.2.8 (and any other requirement for Owner’s approval hereunder), Development Manager may accept (or, in the
case of a subcontract, cause the prime contractor to accept) the lowest bid the Development Manager is permitted to accept pursuant to the Requirements if the expenditure is for a Wholly-Owned Project Budget item and will not result in an annual
budgeted accounting category in excess of what is set forth in the Project Budget for such Wholly-Owned Project, provided that if the Requirements require that Development Manager accept any bid other than the lowest bid, Development Manager shall
promptly notify Owner of such in writing and the acceptance of such bid shall not limit Owner’s rights with respect to the form of any agreement with respect to such bid pursuant to Section 4.2.8 hereof. 
  
 (d) If any governmental authority requests that Development
Manager accepts any bid other than the lowest bid pursuant to the Requirements, Development Manager shall obtain the prior written consent of Owner (which shall not be unreasonably withheld or delayed) prior to accepting such bid and the acceptance
of such bid shall not limit Owner’s rights with respect to the form of any agreement with respect to such bid pursuant to Section 4.2.8 hereof. The Parties hereby acknowledge and anticipate that with respect to the Mission Bay Project the
Requirements may require that Development Manager accept a bid other than the lowest bid. 
  
 (e) If Development Manager advises acceptance of other than the lowest bidder pursuant to the Requirements, Development Manager shall
adequately support, in writing, its recommendation to Owner and receive Owner’s prior written approval before awarding (or, in the case of a subcontract, allowing the prime contractor to award) the contract. 
  
 (f) Development Manager may request that Owner waive these
competitive bidding requirements and Owner’s direction in any single instance shall not be deemed to be its consent in any subsequent instance. Owner hereby acknowledges that, with respect to the 

  

 15 

 
Mission Bay Project, the Requirements may not require that Development Manager obtain at least three (3) written bids from qualified providers for each
contract or purchase. 
  
 (g) Subject to Section
4.2.8, and except as otherwise permitted herein, Development Manager shall not hold itself out as having the authority to approve any contract or agreement without the prior written approval of Owner. 
  
 4.2.8 New Project Agreements. Negotiate and prepare,
for the approval of and execution by Owner, all agreements as Development Manager recommends that Owner execute (or are designated by Owner) in connection with any Wholly-Owned Project. Development Manager shall consult with Owner as to the terms of
any such agreement that Development Manager is negotiating as reasonably necessary (and as requested by Owner) with the goal of minimizing any re-negotiation. Notwithstanding the foregoing or anything to the contrary contained in this Agreement,
Development Manager is hereby authorized without Owner’s approval to execute such agreements on Owner’s behalf as Development Manager shall deem appropriate in the ordinary course of Development Manager performing its duties under this
Agreement, so long as a copy of such agreement is promptly delivered to Owner and such agreements (a) are bona fide, unrelated third party contracts consistent with the Project Budget that comply with all Requirements, (b) do not, in the aggregate
with respect to any one such agreement, result in the Owner making or agreeing to make expenditures of more than $100,000, (c) do not, in the aggregate with respect to all such agreements for any individual Wholly-Owned Project, result in the Owner
making or agreeing to make expenditures of more than $500,000 and (d) do not have a term in excess of twelve (12) months. Notwithstanding the foregoing, attached hereto as Schedule “4.2.8” is a list of some of the Contractors which
have performed work on one or more Projects and which Development Manager may decide to engage for future phases of a Project, and Development Manager shall be permitted to engage the Contractors listed on such schedule without the prior written
consent of Owner, provided that Owner shall have the right to approve the agreement with any such Contractor pursuant to this Section 4.2.8. Development Manager also may engage Contractors other than those listed on Schedule “4.2.8”
attached hereto in connection with the Projects, provided that Development Manager obtains Owner’s prior written consent prior to engaging such Contractor, such consent not to be unreasonably withheld, conditioned or delayed. 
  
 4.2.9 Administering Project Agreements. Except as
otherwise directed in writing by Owner, Development Manager shall advise Owner regarding the interpretation and enforcement of, and administer, all Project Agreements, including any construction documents to which Owner is a party, which Project
Agreements have been provided to Development Manager in connection with the performance of this Agreement. Without limitation on the foregoing, Development Manager shall use Commercially Reasonable Efforts to obtain all approvals required under and
otherwise assist Owner in complying in all material respects with the Project Agreements with respect to any Wholly-Owned Project, as and when required. 
  
 4.2.10 CFDs, Tax Increments and Other Public Financing. Subject to Section 5.3, Development Manager shall use Commercially
Reasonable Efforts to administer and perform all acts required of Owner on behalf of Owner in connection with the community facilities districts and other districts, including, without limitation, other regimes relating to credits, reimbursements
and other direct and indirect payments, including tax increments and bond reimbursements created under statutory or governmental authorization with respect to any Wholly-Owned Project. Development 

  

 16 

 
Manager shall diligently pursue and shall, including, (a) prepare the “Payment Requests” required under those certain Acquisition Agreements, both
dated as of June 1, 2001 (the “Acquisition Agreements”), by and between Catellus Development Corporation, a Delaware corporation, and the Redevelopment Agency of the City and County of San Francisco (“Agency”),
which Acquisition Agreements have been assigned to Owner; (b) process such Payment Requests, including, provide additional information to the Agency or its authorized agents as may be reasonably requested by Owner, Agency or its authorized agents;
(c) after the date hereof, provide to Owner any monies received by Development Manager for such reimbursements under the Acquisition Agreements; and (d) cooperate with Owner in any meetings, conferences or other interactions with the Agency, all
other governmental authorities and their authorized agents regarding the reimbursements that are the subject of the Acquisition Agreements and Payment Requests and/or matters under the “Mission Bay North Owner Participation
Agreement”, the “Mission Bay South Owner Participation Agreement” or the Financing Plan (which is Attachment E to the each of the Mission Bay North Owner Participation Agreement and the Mission Bay South Owner Participation
Agreement), to procure the issuance of bonds to provide funds to Owner for reimbursement of costs in connection with the completed infrastructure at each Project and provide all necessary documentation and a budget for such costs in connection with
the same; provided, however, Owner acknowledges that Development Manager may employ independent contractors pursuant to the Project Budget to perform the same if it is consistent with standards and practices of Development Manager and its Affiliates
with respect to the subject Projects for the twelve (12) months prior to the date hereof. 
  
 4.2.11 Payments. Establish procedures for the processing and payment of applications for payment by all contractors,
subcontractors, and materialmen providing services, labor or material for construction of the Wholly-Owned Project. Development Manager shall review for appropriateness, all applications for payment submitted by contractors, engineers,
subcontractors and materialmen in connection with any Wholly-Owned Project, and recommend such application for approval or disapproval of payment by Owner. If Development Manager recommends that Owner pay such application, Development Manager shall
submit the application to Owner along with the “Monthly Report” (as hereinafter defined). If Development Manager recommends that Owner disapprove any application, Development Manager shall provide to Owner a detailed written explanation of
the reasons for such disapproval. Development Manager shall also diligently prepare periodic draw requests for submittal to any construction lender for a Wholly-Owned Project, including all schedules, lien releases and other documents and
information requested by any such lender. All such draw requests shall be consistent with the Requirements, and shall be subject to Owner’s approval before submittal to any such lender. Notwithstanding anything to the contrary contained herein,
Development Manager shall not make disbursement requests with respect to any payments to Development Manager under this Agreement (except in connection with periodic payments to Development Manager or its Affiliates set forth in the applicable
Project Budget) without Owner’s express written consent or in connection with any contracts or other documents with any Affiliate of Development Manager for services for any Wholly-Owned Project. Such request to Owner shall be a single purpose
correspondence that shall state on the first page of such disbursement request, “THIS REQUEST SHALL INCLUDE PAYMENTS TO DEVELOPMENT MANAGER OR DEVELOPMENT MANAGER’S AFFILIATES WHICH ARE NOT STANDARD PERIODIC PAYMENTS”. 
  
 4.2.12 Supervision of Professionals. Direct, retain,
coordinate, monitor and supervise the performance of (and make recommendations to) the members of the Design Team with 

  

 17 

 
respect to a Wholly-Owned Project and other professionals and independent contractors and consultants providing services in connection with the development
of any such Wholly-Owned Project, provided that Development Manager shall not be liable or responsible for the performance of such professionals and independent contractors and consultants as described in Section 11.1. Coordinate with professionals
and independent contractors and consultants engaged by any potential purchaser of a particular Wholly-Owned Property. Use Commercially Reasonable Efforts to review that such activities and services are provided by such parties for compliance with
the Requirements. 
  
 4.2.13 Regular
Inspections by Development Manager. Use Commercially Reasonable Efforts to inspect the Wholly-Owned Properties on a regular basis (which shall be on a weekly basis for those portions of the Wholly-Owned Properties under construction and
otherwise at such regular intervals as Development Manager deems reasonably necessary or desirable). Subject to any restrictions contained in the Requirements, Development Manager shall recommend to Owner that Owner stop work or reject any work on
such Wholly-Owned Property, of which Development Manager is aware fails to substantially conform with the Drawings and Specifications or other Requirements related to such Wholly-Owned Property. 
  
 4.2.14 Regular Inspections by Design Team. Use
Commercially Reasonable Efforts to cause applicable members of the Design Team for each Wholly-Owned Project to regularly (at least once monthly) inspect any portion of such Wholly-Owned Project under construction and for which such Design Team
members have responsibility to determine whether such Wholly-Owned Project is being constructed in accordance with the Drawings and Specifications for such Wholly-Owned Project, and to report and account for the costs of construction, including all
labor and materials for each Wholly-Owned Project. 
  
 4.2.15 Financial and Other Records. Maintain complete financial records for each Wholly-Owned Project and impose financial and accounting controls as required herein and maintain a set of working Drawings and Specifications for each
Wholly-Owned Project, and addenda and change orders thereto, at either the on-site local office for the Wholly-Owned Project or at Development Manager’s offices at Catellus Development Corporation, 201 Mission Street, Lobby 2, San Francisco,
California 94105 with respect to the Mission Bay Assets and the Alameda (Bayport) Wholly-Owned Assets (the “Development Manager Northern California Office”), or Catellus Development Corporation, Residential Group, 3990 Westerly
Place, Suite 120, Newport Beach, California 92660 with respect to the West Bluffs Assets and the Santa Fe Depot Assets (the “Development Manager Southern California Office”). Development Manager shall maintain in an organized and
complete manner all other records for each Wholly-Owned Project to complete the tasks and obligations required under this Section 4.2 (the “Task Records”) at the Development Manager Northern California Office with respect to the
Mission Bay Assets and the Alameda (Bayport) Wholly-Owned Assets and the Development Manager Southern California Office with respect to the West Bluffs Assets and the Santa Fe Depot Assets. Owner shall have the right to review such Task Records upon
reasonable advance notice on any business day. 
  
 4.2.16 Development Team Meetings. Conduct regular meetings of the appropriate members of the Development Team and any other appropriate parties during the course of development and construction of each Wholly-Owned Project as often
as reasonably necessary to provide continuing supervision and control of Development Team, Design Team and such Wholly-Owned Project and compliance with the Project Schedule and the Project Budget. In the Monthly 

  

 18 

 
Report (and each report of a meeting of the Development Team), Development Manager shall notify Owner of each such meeting scheduled to occur on or before
the next Monthly Report and shall permit attendance by Owner and the asset manager, construction consultants, property management personnel, or other agents and representatives of Owner. Development Manager shall also meet with representatives of
Owner at such times as Owner may request (together with such other members of the Development Team, if any, as Owner may designate) and will promptly provide Owner with information as such Owner may request. 
  
 4.2.17 Public Meetings. Attend any and all public
meetings and hearings which could have a material impact on matters covered in the Development Plan for such Wholly-Owned Project (which shall include all meetings or hearings with respect to which the purpose includes consideration of a
discretionary approval for such Wholly-Owned Project), and report to Owner the results of such meetings and hearings, and otherwise keep Owner reasonably informed of the progress of each Wholly-Owned Project, and notify Owner in advance of each such
public meeting and hearing. 
  
 4.2.18
Disputes. Promptly advise Owner of any material disputes of which Development Manager is aware with any of the Development Team, any adjoining property owner or any other party relating to any Wholly-Owned Project or any Property. 

 
 4.2.19 Budgets/Schedules. Review and update
periodically (at least quarterly), and at the request of Owner, the Project Budget and the Project Schedule (provided, however, that Development Manager may not change the Project Budget or the Project Schedule without the approval of Owner) for
each Wholly-Owned Project. In the event that Owner does not approve such updates, Owner shall give Development Manager written comments detailing the reasons for Owner’s disapproval, and Development Manager shall have the same revised to
Owner’s satisfaction. In the event that Development Manager determines that development and construction of any Wholly-Owned Project is not in accordance with its Project Budget or Project Schedule, Development Manager shall promptly
investigate the causes for the departure from such Project Budget or Project Schedule, deliver to Owner recommendations as to how to most efficiently and economically come into compliance with such Project Budget and Project Schedule or in the
alternative, provide recommendations for changing the Project Budget and changing the Project Schedule, and implement Owner’s decisions with respect thereto. Development Manager is authorized to make an expenditure payable to a third party
exceeding the amount specified for such expenditure in any Project Budget but only if (a) Development Manager, in its reasonable judgment, deems there to be an emergency requiring such expenditure to effectuate immediate action necessary for the
protection of such Wholly-Owned Project, property or persons; or (b) such expenditure would not violate any Requirements and would not (i) cause the line item in such Project Budget to which such expenditure relates to exceed the budgeted amount of
such line item in such original Project Budget (taking into account the amounts expended to date and reasonably anticipated expenses in connection with such line item) by more than the greater of 10% or $100,000 of such line-item, or (ii) cause the
aggregate amount of the expenses within such Project Budget to exceed the entire amount of budgeted expenses in the then current Project Budget (taking into account the amounts expended to date and reasonably anticipated expenses and actual and
reasonably anticipated cost savings). Development Manager is authorized to use the contingency amount in each Project Budget in its reasonable discretion, provided that such contingency expense shall not cause the line item in such Project Budget to
which such expenditure relates to exceed the budgeted amount of such line 

  

 19 

 
item in such original Project Budget (taking into account the amounts expended to date and reasonably anticipated expenses in connection with such line item)
by more than the greater of 10% or $100,000 of such line-item. Notwithstanding the foregoing, with respect to the Mission Bay Project, an “authorization for expenditure” (an “AFE”) in the applicable Project Budget shall
constitute a line-item for purposes of this Section 4.2.19 so long as such AFE in the Project Budget does not exceed $2,500,000. Development Manager shall promptly notify Owner, both by telephone and in writing, of each expenditure made pursuant to
the preceding sentence (and in the case of clause (b) above, an opportunity to discuss the same before it is made) and shall promptly supply Owner with such information with respect thereto as Owner may reasonably request. 
  
 4.2.20 Disclosures. Development Manager shall use
Commercially Reasonable Efforts to ensure that all required disclosures (including disclosures to homeowners and purchasers of any Wholly-Owned Property or any portion thereof) required by any governmental authorities, including the County and State
in which any such Wholly-Owned Property is located, are made to all purchasers of any portion of such Property and shall require all such purchasers to agree to make all such disclosures to any subsequent purchaser. 
  
 4.2.21 Requirements. Use Commercially Reasonable
Efforts to comply with the Requirements applicable to Development Manager’s and Owner’s obligations with respect to the Wholly-Owned Projects. 
  
 4.2.22 Implementation of Owner’s Policies. Subject to Section 5.3, use Commercially Reasonable Efforts to implement
Owner’s policies, procedures and decisions in connection with the design, development, entitlement, permitting, construction, sale and marketing of any Wholly-Owned Project upon notice from Owner thereof. 
  
 4.2.23 Final Completion. Use Commercially Reasonable
Efforts to cause the Final Completion of, and completion of all warranty work for, each Wholly-Owned Project to occur on or before the dates set forth in the Project Schedules. 
  
 4.2.24 Claims. Notify and advise Owner in connection with any claims made against Owner by any member
of the Design Team, any other party providing services or any other third party in connection with a Wholly-Owned Project promptly upon receipt of notice of such claims. 
  
 4.2.25 Retainage. Require and administer retainage of at least 10% on each Wholly-Owned Project (it
being agreed that a final installment of not less than 10% payable after final completion shall qualify for such purpose) and otherwise, as Development Manager shall reasonably deem to be appropriate, in contracts with contractors, architects,
engineers, suppliers, subcontractors and others providing services or materials to such Wholly-Owned Project; provided, however, Development Manager shall be permitted to administer retainage of such lesser amounts (with a guideline of in no event
less than 5%) with the prior written consent of Owner (which consent shall not be unreasonably withheld or delayed). Notwithstanding anything to the contrary contained in this Agreement, Development Manager shall be permitted to pay subcontractors
and others providing services or materials to such Wholly-Owned Projects who shall have completed their portion of such Project prior to Final Completion of such Wholly-Owned Project with the prior written consent of Owner (which consent shall not
be unreasonably withheld or delayed). 
  

 20 

 4.2.26 Completion Inspections. Inspect each Wholly-Owned Project with the
appropriate members of the Design Team upon substantial completion of such Wholly-Owned Project and submit to Owner recommendations concerning the acceptance of such Wholly-Owned Project by Owner and the approval by Owner of any Punch List Items.

  
 4.2.27 Punch List Items. Prepare a
list of Punch List Items with respect to each Wholly-Owned Project and inspect and use Commercially Reasonable Efforts to cause the prompt completion or correction of all Punch List Items, as the case may be. 
  
 4.2.28 Hazardous Materials. Immediately notify Owner
upon discovery by Development Manager of any Hazardous Material on any such Wholly-Owned Property that has not been previously identified as an environmental concern, and recommend appropriate action and supervise the course of action approved or
directed by Owner. 
  
 4.2.29 Mechanic’s
Liens. Notify Owner, within ten (10) business days after receipt of written notice (but as soon as reasonably possible prior to the foreclosure date, if actually known to Development Manager) of (A) any written dispute over amounts owed any
party that has the statutory authority to file a construction lien against any Wholly-Owned Property or (B) any filing of a construction lien claim against any Wholly-Owned Property, and, subject to Section 5.3, use Commercially Reasonable Efforts
to cause the prompt removal of any such lien (or in lieu of removing, contest such lien in accordance with the Project Financing Documents or tender such lien to the Contractor under any Contractor indemnity or related provision), and without
limitation promptly take such action as Owner reasonably determines to be necessary to protect such Wholly-Owned Property after consultation with Owner and subject to Section 5.3. 
  
 4.2.30 Lien Waivers. Obtain appropriate affidavits and lien waivers from each respective Contractor,
Architect, Engineer, Land Planner, Landscape Architect, Soils Engineer, contractors, subcontractors and materialmen providing services, labor or material for each Wholly-Owned Project. 
  
 4.2.31 Coordinate Marketing and Sales. Direct coordination with and supervision of all marketing
agents in the preparation and implementation of marketing plans and promotional activities and sales programs for the sale of each Wholly-Owned Property and any portion thereof in accordance with the Requirements and, in connection therewith, the
evaluation of the creditworthiness of each buyer, provided that Development Manager shall not be deemed to have guaranteed performance or payment by a buyer and shall have no liability for any damages or losses sustained by Owner as a result of the
financial condition or creditworthiness of any such buyer. As part of the Development Plan (as such Development Plan may be finalized after the date of this Agreement), Development Manager shall develop a Marketing Plan for each Wholly-Owned
Property (such Marketing Plan as hereafter amended from time to time being hereinafter referred to as the “Marketing Plan”) and Development Manager shall proceed with marketing each Wholly-Owned Property in accordance with the
Marketing Plan for such Wholly-Owned Property. Without excluding other issues that the parties hereto may determine to cover in the Marketing Plan for each Wholly-Owned Property in effect under the terms hereof from time to time, it is agreed hereto
that the Marketing Plan for each Wholly-Owned Property shall address the following issues: 
  
 (a) To the extent that any such Wholly-Owned Property is broken out into individual lots, the breakout of such lots to be offered either
individually or in bulk to individual purchasers and/or builders and/or subdividers; 
  

 21 

 (b) The advertising and promotional materials that Development Manager is authorized to
develop and utilize and a budget for same; 
  
 (c) The minimum cash purchase price to be solicited by Development Manager with respect to such Wholly-Owned Property or phase or lot within such Wholly Owned Property; 
  
 (d) Use Commercially Reasonable Efforts to obtain from Wholly-Owned Property buyers indemnities and releases
described in Section 10.20.2 of the Purchase Agreement and obtain the Applicable Seller’s consent to any amendments to such indemnities; 
  
 (e) Upon Owner’s request or if specified in the applicable Development Plan for such Wholly-Owned Property, election of outside real
estate brokers to list and market such Wholly-Owned Property and the terms, conditions and provisions of outside brokerage arrangement that is acceptable to Owner. 
  
 No listings shall be given to any outside brokers except with the prior written approval of Owner. Owner shall have the ability to modify or
amend a Marketing Plan for a Wholly-Owned Property at any time and from time to time upon consultation with Development Manager, although Development Manager’s approval shall not be required to any such modifications. Upon any such modification
or amendment to such Marketing Plan, Owner shall notify Development Manager and Development Manager shall use Commercially Reasonable Efforts to implement such modified or amended Marketing Plan for such Wholly-Owned Property as Owner’s agent.
Development Manager shall recommend to Owner changes from time to time it deems appropriate to each Marketing Plan for each Wholly-Owned Property and Owner shall consider same in good faith and respond thereto, although Owner shall retain the
ultimate discretion respecting the Marketing Plan for each Wholly-Owned Property. Subject to Section 4.4.2, Development Manager shall have responsibility and authority to carry out the Marketing Plan for each Property and shall charge all
third-party costs, fees and expenses incurred by it incident to the implementation of the Marketing Plan for each Wholly-Owned Property to Owner’s account. 
  
 4.2.32 Compliance with Project Financing Documents. Subject to Section 5.3 and the provisions of this
Section 4.2.32 below, Development Manager shall use Commercially Reasonable Efforts to perform, on behalf of each Owner, any and all of the covenants of each Owner as “Borrower” under the Project Financing Documents, but only to the extent
that such performance is within the scope of Development Manager’s duties and obligations expressly set forth elsewhere in this Agreement, provided that nothing contained in this Section 4.2.32 shall be deemed to mean that Development Manager
is assuming or otherwise becoming personally liable for the covenants or other obligations of Borrower under the Project Financing Documents. In addition to Section 5.3, the performance of each obligation of Development Manager under this Section
4.2.32 is conditioned upon Owner providing documents, cooperation and resources within a reasonably prompt time following Development Manager’s request for the same to enable Development Manager to perform such obligation on behalf of Owner.

  

 22 

 4.2.33 Other Work. Furnish such consultation and advice relating to each
Wholly-Owned Project as may reasonably be requested from time to time by Owner, and perform all other customary or incidental functions necessary or appropriate for the timely, professional completion of the Wholly-Owned Projects in accordance with
the Requirements. In addition, Development Manager shall use Commercially Reasonable Efforts to prepare, submit for review, respond to governmental changes and finalize the Mission Bay Project final maps within the deadlines set forth therein, all
as described on Exhibit “E” attached hereto (the “Special Tasks”), subject to Section 5.3. 
  
 4.2.34 Compliance with Purchase Agreement. Subject to Section 5.3 and the provisions of this Section 4.2.34 below, Development
Manager shall use Commercially Reasonable Efforts to perform, on behalf of Owner, every obligation assumed by Owners under the Purchase Agreement, including, any assumed obligation in respect of property sold by Sellers and their Affiliates to third
parties prior to the date hereof but only to the extent that such performance is within the scope of Development Manager’s duties and obligations set forth elsewhere in this Agreement, provided that nothing contained in this Section 4.2.34
shall be deemed to mean that Development Manager is assuming or otherwise becoming personally liable for the covenants or other obligations assumed by Owners under the Purchase Agreement. In addition to Section 5.3, the performance of each
obligation of Development Manager under this Section 4.2.34 is conditioned upon Owner providing documents, cooperation and resources within a reasonably prompt time following Development Manager’s request for the same to enable Development
Manager to perform such obligation on behalf of Owner. 
  
 4.2.35 Designation of Professionals. Use Commercially Reasonable Efforts to designate, in accordance with the applicable Development Plan, the Architect, the Contractor, the Engineer, the Land Planner and the Landscape Architect with
respect to each Wholly-Owned Project. 
  
 4.2.36
Experience and Licenses. Use Commercially Reasonable Efforts to perform the services that are the subject matter of this Agreement, and to cause Development Manager’s employees to perform such services with respect to each Wholly-Owned
Project. Development Manager shall, at all times during the Term with respect to each Wholly-Owned Project, (i) hold and maintain all licenses, permits or other certifications necessary to perform its duties under this Agreement which are available
at each stage of development in compliance in all material respects with all Laws, and (ii) hold on behalf of Owner and maintain all licenses, permits or other certifications which relate to any Project or Property, are available at each stage of
development in compliance in all material respects with all Laws. 
  
 4.2.37 Compliance with Labor Laws. Without limitation on the generality of the foregoing, but subject to Section 5.3, Development Manager shall maintain at all times during the Term sufficient facilities,
expertise, staff, assets and other resources to perform its duties under this Agreement as contemplated under the Development Plans and subject to the right to employ certain consultants and other personnel as described in the Project Budgets and to
increase its personnel if the scope of any of the Development Plans materially changes. Without limitation on the generality of the foregoing, but subject to Section 5.3, during the Term, Development Manager and anyone authorized to act for
Development Manager shall comply with the provisions of the California Labor Code, as amended, and all other applicable federal, state and local laws with respect to labor matters, labor unions, required use of union labor, and prevailing wage laws
as such laws apply to 

  

 23 

 
Development Manager and the performance by Development Manager of its duties and obligations under this Agreement with respect to the Wholly-Owned Projects
and Owner’s ownership of the Wholly-Owned Properties. 
  
 4.2.38 Mission Bay Project Agreement. Use Commercially Reasonable Efforts to (1) cause each “Project Contractor” (as defined in that certain Agreement Regarding Mission Bay Successor Project Agreement
dated as of the date hereof by and between COLP and FOCIL-MB [the “Mission Bay Successor PLA”]) and any contractors to which FOCIL-MB or any of its contractors contract work which is covered by the “Original PLA” (as defined in
the Mission Bay Successor PLA), to sign and become a party to the Mission Bay Successor PLA, (2) cause the “Primary Contractor” (as defined in the Mission Bay Successor PLA) to execute the Mission Bay Successor PLA prior to the
commencement of any construction work on the Property, and (3) deliver an executed original of the Mission Bay Successor PLA to the “Council” (as defined in the Mission Bay Successor PLA), with a copy to COLP prior to the commencement of
such work. 
  
 4.2.39 Compliance with SB
800. Subject to Section 5.3, use Commercially Reasonable Efforts to comply with SB 800 as to the portions of the Wholly-Owned Property on which residential units are to be constructed or are in the process of being designed or constructed. Such
compliance shall include, to the extent appropriate, the preparation, recording (as applicable) and use of covenants, conditions and restrictions, and appropriate provisions in insurance policies, contracts with consultants, contractors,
subcontractors and others to facilitate compliance with SB 800, and such other documents and acts as may be necessary or appropriate for compliance with SB 800. 
  

4.3 Specific Duties and Services with Respect to the Venture Project. With respect to the Venture Project, Development Manager shall use
Commercially Reasonable Efforts to cause the Venture to take such actions described in Section 4.2 hereof with respect to the Venture Project (rather than the Wholly-Owned Projects). Commercially Reasonable Efforts shall be interpreted in the
context of this Section 4.3 by taking into account any limitations under the Venture Agreement. Without limitation on the foregoing, with respect to the Venture Project, Development Manager shall: 
  
 4.3.1 Recommendations; Hiring and Replacing
Professionals. Advise and assist with recommendations for the development, entitlement, permitting, construction, sale and marketing of the Venture Property. 
  
 4.3.2 Recommendations Regarding Savings. Advise and assist in providing recommendations on the
relative feasibility of different construction methods, the availability of labor, equipment and materials, the costs of alternative designs and materials, and other issues relating to costs and possible savings, and, without limitation, advise
Owner concerning possible change orders and material cost savings where appropriate. 
  
 4.3.3 Permits; Meetings. Notify Owner in advance of, and shall cause to be attended, all meetings of regulatory bodies,
redevelopment agencies, civic associations and other groups in connection with the Permits or otherwise affecting the Venture Project and shall keep Owner advised and well informed of all material developments in connection with such Permits.

  

 24 

 4.3.4 CFDs, Tax Increments and Other Public Financing. Provide any and all
information to CIC or the City of Alameda as may be reasonably requested by any of CIC, the “City of Alameda” or Owner for reimbursement of “Project Expenses” (as defined in the DDA) to Owner, make any and all
requests to CIC and the City of Alameda for tax-exempt bond financing of Project Expenses as may be reasonably requested by Owner, and cooperate with Owner in any meetings, conferences or other interactions with CIC, the City of Alameda or any other
governmental authorities regarding reimbursement of Project Expenses, including additional funding of the “Residential Shortfall Loan” (as defined in the DDA), payment of any principal and interest under the Residential Shortfall
Loan and issuance of tax increment financing bonds. 
  
 4.3.5 Payments. Review for appropriateness (to the extent Owner has such rights as an Owner of the Venture Interest), (1) all applications for payment submitted by contractors, engineers, subcontractors and materialmen in connection
with the Venture Project, and (2) any calls for capital contributions under the Venture. 
  
 4.3.6 Regular Inspections. Inspect the Venture Property on a regular basis and advise Owner of any work of which Development
Manager is aware which fails to substantially conform with the Drawings and Specifications or other Requirements related to the Venture Property and, at Owner’s direction, use Commercially Reasonable Efforts to cause such work to be stopped or
rejected. 
  
 4.3.7 Financial Records.
Maintain complete financial records for the Venture Interest and maintain a set of all documents, records and information received from Warmington Alameda Associates, L.P., a California limited partnership, relating to the Venture or the Venture
Project at the Development Manager Northern California Office. 
  
 4.3.8 Development Team Meetings. Attend meetings of the Development Team (to the extent Owner has such rights as the Owner of the Venture Interest) during the course of development and construction of the
Venture Project. In the Monthly Report (and each report of a meeting of the Development Team), Development Manager shall notify Owner of each such meeting scheduled to occur on or before the next Monthly Report. Development Manager shall also meet
with representatives of Owner at such times as Owner may request (together with such other members of the Development Team, if any, as Owner may designate) and will promptly provide Owner with such information as Owner may request. 
  
 4.3.9 Public Meetings. Attend any and all public
meetings and hearings of which Development Manager has notice and which could reasonably have a material impact on the Venture Project (which shall include all meetings or hearings with respect to which the purpose includes consideration of a
discretionary approval for the Venture Project) and report to Owner the results of such meetings and hearings, and otherwise keep Owner reasonably informed of the progress of Venture Project, and notify Owner in advance of each such public meeting
and hearing. 
  
 4.3.10 Disputes. Promptly
advise Owner of any material disputes of which Development Manager is aware with any of the Development Team, any adjoining property owner or any other party relating to the Venture Project, the Venture Property or the Venture Interest. 

 

 25 

 4.3.11 Budgets/Schedules. Review and, if requested by Owner, use Commercially
Reasonable Efforts to cause to be updated periodically (at least quarterly) the Project Budget and the Project Schedule for the Venture Project. 
  
 4.3.12 Claims. Notify and advise Owner in connection with any claims made against Owner, the Venture Project or the Venture
Interest by any member of the Design Team, any other party providing services or any other third party in connection with the Venture Project promptly upon receipt of notice of such claims. 
  
 4.3.13 Retainage. Owner acknowledges that that the
Venture Project is administered with a 5% retainage. 
  
 4.3.14 Hazardous Materials. Immediately notify Owner upon discovery by Development Manager of any Hazardous Material on the Venture Property that has not been previously identified as an environmental concern. 
  
 4.3.15 Mechanic’s Liens. Notify Owner, within
ten (10) business days after receipt of notice (but as soon as reasonably possible prior to the foreclosure date, if actually known to Development Manager) of (A) any written dispute over amounts owed any party that has the statutory authority to
file a construction lien against the Venture Property or (B) any filing of a construction lien claim against the Venture Property, assist and advise in the prompt removal of any such lien. 
  
 4.3.16 Compliance with Project Financing Documents.
Subject to Section 5.3 and the provisions of this Section 4.3.16 below, Development Manager shall use Commercially Reasonable Efforts to perform, on behalf of the Owner of the Venture Interest the obligations, if any, of such Owner under the Project
Financing Documents, but only to the extent that such performance is within the scope of Development Manager’s duties and obligations expressly set forth elsewhere in this Agreement, provided that nothing contained in this Section 4.3.16 shall
be deemed to mean that Development Manager is assuming or otherwise becoming personally liable for the covenants or other obligations of such Owner or the borrower under the subject Project Financing Documents. In addition to Section 5.3, the
performance of each obligation of Development Manager under this Section 4.3.16 conditioned upon Owner providing documents and cooperation within a reasonably prompt time following Development Manager’s request for the same to enable
Development Manager to perform such obligation on behalf of Owner. 
  
 4.3.17 Other Work. Furnish such consultation and advice relating to the Venture Project as may reasonably be requested from time to time by Owner (to the extent Owner has such rights as an Owner of the Venture
Interest), and advise and assist in the performance of all other customary or incidental functions necessary or appropriate to cause the timely, professional completion of the Venture Project in accordance with the Requirements. 
  
 4.3.18 Compliance with Purchase Agreement. Subject to
Section 5.3 and the provisions of this Section 4.3.18 below, Development Manager shall use Commercially Reasonable Efforts to perform, on behalf of Owners, every obligation assumed by Owners under the Purchase Agreement, including, any assumed
obligation in respect of property sold by Sellers and their Affiliates to third parties prior to the date hereof but only to the extent that such performance is 

  

 26 

 
within the scope of Development Manager’s duties and obligations set forth elsewhere in this Agreement, provided that nothing contained in this Section
4.3.18 shall be deemed to mean that Development Manager is assuming or otherwise becoming personally liable for the covenants or other obligations assumed by Owners under the Purchase Agreement. In addition to Section 5.3, the performance of each
obligation of Development Manager under this Section 4.3.18 is conditioned upon Owner providing documents and cooperation within a reasonably prompt time following Development Manager’s request for the same to enable Development Manager to
perform such obligation on behalf of Owner. 
  
 4.3.19 Designation of Professionals. Use Commercially Reasonable Efforts to designate, in accordance with the applicable Development Plan, the Architect, the Contractor, the Engineer, the Land Planner and the Landscape Architect with
respect to the Venture. 
  
 4.3.20 Experience
and Licenses. Use Commercially Reasonable Efforts to perform the services that are the subject matter of this Agreement, and to cause Development Manager’s employees to perform such services with respect to the Venture. Development Manager
shall, at all times during the Term with respect to the Venture, use Commercially Reasonable Efforts to (i) hold and maintain all licenses, permits or other certifications necessary to perform its duties under this Agreement which are available at
each stage of development, and is in compliance with and shall continue to comply with all Laws, and (ii) hold on behalf of Owner and maintain all licenses, permits or other certifications which relate to any Project or Property, are available at
each stage of development, and is in compliance with and shall continue to comply with all Laws. 
  
 4.3.21 Compliance with Labor Laws. Without limitation on the generality of the foregoing, but subject to Section 5.3, Development
Manager shall use Commercially Reasonable Efforts to maintain at all times during the Term sufficient facilities, expertise, staff, assets and other resources to perform its duties under this Agreement as contemplated under the Development Plans and
subject to the right to employ certain consultants and other personnel as described in the Project Budgets and to increase its personnel if the scope of any of the Development Plans materially changes. Without limitation on the generality of the
foregoing, but subject to Section 5.3, during the Term, Development Manager and anyone authorized to act for Development Manager shall use Commercially Reasonable Efforts, for each Property located in the State of California, to comply with the
provisions of the California Labor Code, as amended, and all other applicable federal, state and local laws with respect to labor matters, labor unions, required use of union labor, and prevailing wage laws as such laws apply to Development
Manager’s duties and obligations under this Agreement with respect to the Venture and Owner’s ownership of the Venture Interest. 
  
 4.3.22 Compliance with SB 800. Use Commercially Reasonable Efforts to cause the Venture to take such actions as are necessary or
appropriate for compliance with SB 800 as to the portions of the Venture Project on which residential units are to be constructed or are in the process of being designed or constructed. 
  

 27 

 4.4 Limitations on Authority of Development Manager. Notwithstanding anything to the contrary
herein, Development Manager shall not, without the prior approval of Owner, take or attempt to take any of the following actions: 
  
 4.4.1 Liens and Encumbrances; Transfers. Voluntarily subject all or any portion of the Properties or any other property of Owner to any
mortgage, deed of trust, lien or other encumbrance, or transfer all or any portion of the Properties. 
  
 4.4.2 Expenditures/Liabilities. Take any action which would cause Owner to expend funds or incur liabilities or obligations to a
third party with respect to any part of any Property, except as expressly provided in the respective Project Budget, subject to Section 4.2.19. 
  
 4.4.3 Development Plan. Take any action that would result in any activity or expenditure that is not consistent, in all material
respects, with the Development Plans. 
  
 4.4.4
Project Agreements. Enter into, on its own behalf or on behalf of Owner or the Venture, any Project Agreement (including any contract relating to the design, construction, development, or leasing of any Property, or any portion thereof), or
modify, waive any right under, terminate or enforce any such Project Agreement (it being understood that all Project Agreements to be entered into by Owner, directly or as a member of the Venture Interest, shall require the prior approval of Owner
and shall be executed by Owner and all Project Agreements to be entered into by a Venture shall be executed by the Venture), except as expressly provided herein in Sections 4.2.8. 
  
 4.4.5 Debt. Borrow money or execute any promissory note, evidence of indebtedness, guaranty or the
like in the name of or on behalf of Owner. 
  
 4.4.6 Modification of Budget. Modify the Project Budget for such Project including reallocating costs between or among line items except as expressly provided in Section 4.2.19 hereof. 
  
 4.4.7 Modification of Plans. Modify the Drawings and
Specifications with respect to such Project in any material manner except for modifications required by the Requirements or any applicable governmental agency and modifications that do not increase the Project Budget. 
  
 4.4.8 Modification of Schedule. Modify the Project
Schedule with respect to such Project in any material manner except as expressly provided in Section 4.2.19. 
  
 4.4.9 Litigation. Commence litigation against or settle (a) any claims in respect of the “Assumed Litigation”, or
(b) any claims when Development Manager or any of its Affiliates has a conflict or other claims in excess of $100,000 (provided that the aggregate of all settlement claims does not exceed $500,000) by any Contractor, Architect, Engineer, Land
Planner, Landscape Architect, Soils Engineer or any other contractor, subcontractor, supplier, laborer or materialmen, or any other person relating to the development or construction of such Project. Notwithstanding the foregoing, Development
Manager promptly shall inform Owner of any material settlement terms, regularly shall apprise Owner of the status of all proceedings with respect to the Assumed Litigation and shall consult with Owner with respect to any strategic decisions in
connection with the Assumed Litigation. 
  
 4.4.10 Affiliate Transactions. Take any action that results in any compensation or reimbursement to, any Affiliate of Development Manager or any other Person or entity with which Development Manager or any of its Affiliates has a
significant business relationship, except as expressly provided herein in Section 4.2.2. 
  

 28 

 4.4.11 Modification of Requirements. The entry into or the modification of any
Requirements, including the creation of any material concessions by or restrictions on Owner, such Project or the Venture in connection with such Project, in connection with obtaining zoning, variances, map approval, entitlements, permits or other
governmental approvals, except to the extent expressly provided for in the Development Plan or consented to in writing by Owner. 
  
 4.4.12 Modification of Sale Agreements. Once approved by Owner in advance, any material modification to a sale agreement for any
subject Property or portion thereof. 
  
 4.4.13
Purchase Money Financing. The granting on behalf of Owner or the Venture of any purchase money financing to the purchasers of the subject Property or any portion thereof. 
  
 4.4.14 Venture Purchase Money Financing. Consent to the granting by the Venture of any purchase money
financing to the purchasers of the subject Property or any portion thereof. 
  
 4.4.15 Owner’s Instructions. Take any other actions in conflict with express instructions from Owner (provided such instructions are not contrary to the terms of this Agreement). 
  
 4.4.16 Hiring of Professionals. Engage any
attorneys, accountants, consultants and other professionals (including professionals referenced in Sections 4.2.2 and 4.3.1 herein, but subject to Development Manager’s rights to engage the same pursuant to Sections 4.2.2 and 4.3.1
herein). 
  
 4.4.17 Purchase and Sale
Agreement. Enter into any purchase and sale agreement with respect to the subject Property or any portion thereof. Development Manager shall be permitted to negotiate the same, including any releases or indemnities contemplated under Section
10.20.2 of the Purchase Agreement, upon the direction of Owner, and Development Manager shall provide proposals with respect to such purchase and sale agreement and Owner shall consider the same in good faith and respond thereto, although Owner
shall retain the ultimate discretion with respect to the substance and forms of all purchase and sale agreements. The Parties acknowledge that the sale of “Alexandria III Lots” and the West Bluffs Assets shall be in accordance with
the terms and conditions of the Purchase Agreement. 
  
 4.4.18 Other Actions. Any other material matter or action not expressly authorized by this Agreement. 
  
 4.4.19 Venture Consents. Consent on behalf of Owner to any of the items listed in Sections 4.4.1 through 4.4.18 in respect of the
Venture. 
  
 4.5 Employees and Project Staffing of each
Project. 
  
 4.5.1 Local Offices; Presence
at Projects. Development Manager shall manage the design, development, entitlement, permitting, construction, sale and marketing of each Project at the applicable “Development Manager Office” (as hereinafter defined) for such Project;
provided, however, Development Manager shall maintain an on-site local office at each Project during the construction at such Project; provided further, however, (1) the office maintained and located at 2377 Crenshaw Boulevard, Suite 152, Torrance,
California 90501 (the “Development Manager West Bluffs Office”), shall be deemed an on-site local office pursuant to this Section 4.5.1 with 

  

 29 

 
respect to the West Bluffs Project so long as Development Manager shall cause the Contractor for the West Bluffs Project to maintain an office at the West
Bluffs Property during the construction on the West Bluffs Project, and (2) the office maintained and located at 800 N. Alameda Street, Suite 100, Los Angeles, California 90012 (the “Development Manager Santa Fe Depot Office”, and
together with the Development Manager Northern California Office, the Development Manager Southern California Office, the Development Manager West Bluffs Office, the “Development Manager Offices”), shall be deemed an on-site local
office pursuant to this Section 4.5.1 with respect to the Santa Fe Depot Project. Development Manager shall have its employees visit each Project with sufficient frequency so that Development Manager may perform its duties hereunder and such Project
is properly monitored. Development Manager shall have a project manager whose offices will be located at each Project during the construction at such Project. Notwithstanding anything to the contrary contained herein, Development Manager shall keep
and maintain the Development Manager Northern California Office at all times prior to the Final Completion of the Mission Bay Project and the Alameda (Bayport) Project. Without limitation on the foregoing, the Parties acknowledge that Development
Manager shall utilize the “Mission Bay Office” in accordance with the terms and conditions of the Purchase Agreement. 
  
 4.5.2 Staffing. Development Manager shall, with respect to the Projects, assign to the construction such staff as may be reasonably
required to perform its duties hereunder with due diligence and to monitor the timely completion of each Project. Development Manager acknowledges that the Development Base Fee shall be sufficient to cover the cost of all such staffing. 

 
 4.5.3 Project Manager; Development Manager.
At all times during the course of the development and construction of each Project, Development Manager shall provide a competent and qualified project manager, subject to Owner’s reasonable approval of each such project manager. Such project
manager shall be directly charged with the monitoring of the planning, design, development, entitlement, permitting, construction, sale and marketing of such Project and shall spend such amount of time as reasonably necessary to monitor the
planning, design, development, entitlement, permitting, construction, sale and marketing of such Project (and, without limitation on the foregoing, shall manage the performance by Development Manager of all of its duties and services hereunder). In
the event either Development Manager or Owner desires to replace such project manager, a replacement whose selection is reasonably approved by Owner shall be obtained. In the event such project manager for any reason fails to perform his or her
duties for a period longer than two (2) weeks, Development Manager shall promptly secure a temporary replacement whose selection is to be approved by Owner, which approval shall not be unreasonably withheld; provided, however, if such project
manager resigns without notice, dies, or is disabled for a period longer than three weeks, Development Manager shall as soon as practically feasible secure an adequate, qualified regular full time replacement for such project manager whose selection
shall be subject to the approval of Owner in Owner’s discretion. Notwithstanding anything to the contrary contained herein, the project manager for each Project shall be subject to the prior approval of Owner, which approval shall be in
Owner’s reasonable discretion. 
  
 4.5.4 Replacement of Project Personnel. If Owner determines in its reasonable discretion that it is not in the interest of Owner for a specific individual among the personnel employed in connection with the respective Project to
continue to perform services or work on such Project, then such Owner may give Development Manager written notice thereof, specifying the 

  

 30 

 
reasons therefor and requesting that Development Manager cause such individual to cease performing services and work and to cease being employed in
connection with any of the Projects. Upon receipt of such request, Development Manager shall promptly cause such individual to cease performing services and work in connection with such Project and shall replace such individual with a person of
suitable ability and qualifications as approved by Owner in Owner’s discretion. For the avoidance of doubt, Development Manager and each Owner acknowledge and agree that Development Manager shall have no obligation upon receipt of any such
request or otherwise (and such Owner shall have no right) to terminate the employment of any individual by Development Manager, any such termination being subject to the discretion of Development Manager (the foregoing provisions being limited to
removing individuals from a Project). 
  
 4.6 Responsibility
For Employees. All matters pertaining to the employment, supervision, compensation, benefits, payment of taxes, promotion and discharge of Development Manager’s employees shall be the responsibility of, and shall be vested solely with,
Development Manager, and no Owner shall have any rights or obligations with respect thereto except for such Owner’s right to require compliance with Sections 4.5.3 and 4.5.4 above. All personnel assigned to or used in connection with a Project
pursuant to this Agreement will be Development Manager’s (and not Owner’s) employees. 
  
 4.7 Urgent Development Matters. The Parties acknowledge that prompt attention to certain development matters (the “Urgent Development
Matters”) may be important to maintain each Project Schedule in accordance with the respective Development Plan. Accordingly, if Development Manager is seeking an approval under this Agreement to an Urgent Development Matter, then (1)
Development Manager shall provide Owner with an “Urgent Approval Request” (as hereinafter defined), and (2) Owner shall endeavor to respond to such request within three (3) Business Days, and if Owner fails to do so, the applicable Project
Schedule shall be automatically extended for each day after such three (3) Business Day period that Owner fails to respond. Any such extension shall be confirmed in writing by the Parties. As used herein, an “Urgent Approval
Request” means a request for approval to an Urgent Development Matter which (1) shall be single purpose correspondence dedicated to such request, (2) states that “THIS LETTER CONSTITUTES A REQUEST FOR YOUR APPROVAL PURSUANT TO
SECTION 4.7 OF THAT CERTAIN DEVELOPMENT AGREEMENT DATED AS OF NOVEMBER 22, 2004 BY AND AMONG FOCIL HOLDINGS, LLC AND OTHER “OWNERS” NAMED THEREIN, ON THE ONE HAND, AND CATELLUS URBAN CONSTRUCTION, INC., AND CATELLUS COMMERCIAL DEVELOPMENT
CORPORATION, ON THE OTHER HAND, FOR AN ‘URGENT DEVELOPMENT MATTER’ AND THEREFORE, PURSUANT TO SECTION 4.7 OF SUCH DEVELOPMENT AGREEMENT, YOU MUST ENDEAVOR TO RESPOND TO THIS REQUEST WITHIN THREE (3) BUSINESS DAYS, AND IF YOU FAIL TO DO SO,
THE PROJECT SCHEDULE FOR [IDENTIFY SPECIFIC PROJECT] WILL BE EXTENDED AUTOMATICALLY FOR EACH DAY AFTER SUCH THREE (3) BUSINESS DAY PERIOD YOU FAIL TO RESPOND”, and (3) contains an explanation of why the matter is urgent. 
  
 4.8 Project Costs. Owner shall be responsible for the costs of each
Project, including the fees, costs and expenses associated with all Project consultants, inspections and reports required in connection with each Project, except for Unreimbursable Costs. 
  

 31 

 ARTICLE V 
 FUNDING 
  
 5.1
Funds. Owner, in its sole and absolute discretion, will have the right to determine the nature, amount and source of financing or other source of funding for each Project. To the extent not provided from other sources, and subject to the
conditions set forth below, Owner may but shall not be obligated to provide funds during the Term for the completion of such Project. Pursuant to Section 5.3, Development Manager shall not be in default under this Agreement for Owner’s failure
to furnish to Development Manager in advance “Required Funds” (as hereinafter defined). 
  
 5.2 Funding Requests. As and when funds are required for any Project, Development Manager shall send to Owner a written request signed by
Development Manager, using such form as Owner may require from time to time (“Funding Request”), and such documentation and information as is required under Exhibit “F”. In each Funding Request, Development Manager
shall request disbursement for one or more specified line item(s) of the Project Budget for such Project. Development Manager must submit a Funding Request to Owner not later than the twenty-fifth (25th) day of each month. Development Manager may submit Funding Requests to Owner no more frequently than once each month, unless Owner has given its prior written
consent in each instance. Each Funding Request shall constitute Development Manager’s representation and warranty to Owner that to Development Manager’s knowledge, (1) all disbursements made to date as well as those being currently
requested were and will be utilized in compliance in all material respects with the applicable Funding Requests and in compliance in all material respects with the Requirements, unless Development Manager has notified Owner in writing to the
contrary and Owner has approved such deviation in writing; and (2) all representations and warranties of Development Manager in Section 3.1 of this Agreement are true and correct on the date of such Funding Request in all material respects (as if
made on and as of such date, except for matters specifically disclosed in such Funding Request as exceptions to such representations and warranties (it being understood that the absence of such exceptions is a condition to Owner’s obligation to
make the funding requested unless such exceptions have been approved in writing by Owner)). Development Manager acknowledges that disbursements for each Project will be made subject to specific AFEs and will be limited to line items in cost
categories in the Project Budget. 
  
 5.3 Failure to Fund.
Notwithstanding anything to the contrary set forth herein, the performance of each and every duty and obligation of Development Manager under this Agreement is conditioned on Development Manager receiving the “Required Funds” (as
hereinafter defined) to perform such duty or obligation. Development Manager shall not be in breach of this Agreement solely by reason of the failure to perform any obligation hereunder to the extent such failure is caused by Owner’s failure to
furnish to Development Manager in advance the “Required Funds” (which shall mean the third party costs or expenses, for, among other things, fees, permits, work, tasks, personnel [other than such work, tasks and personnel of
Development Manager and its Affiliates listed on Schedule “4.1.1” attached hereto] required to be paid by Owner in order to perform such obligation) within a reasonable time after the Required Funds are requested by Development
Manager in accordance with this Agreement so long as such failure to furnish Required Funds is not attributable to Development Manager’s failure to promptly request any Required Funds. 
  

 32 

 ARTICLE VI 
 INSURANCE 
  
 6.1
Development Manager’s Insurance. 
  
 6.1.1 Contractor Coverage. Development Manager shall use Commercially Reasonable Efforts to cause each Contractor, its subcontractors, each Architect, each Engineer and any other contractors or subcontractors to obtain and maintain
in full force and effect all insurance required by and otherwise to comply with the terms of their respective contracts and Exhibit “G”, including compliance with the requirements to provide evidence of insurance required under
their respective contracts and adding each of Development Manager and Owner as additional insureds under such insurance. 
  
 6.1.2 Development Manager Coverage. Unless Owner expressly consents in writing to such lesser amounts of coverage for a particular
Project, Development Manager shall maintain throughout the Term, at its sole cost, the following insurance written by insurance companies, and on forms, acceptable to Owner, on each Project: 
  
 (a) Workers’ Compensation. Workers’
Compensation and employers liability insurance. 
  
 (i) The Workers’ Compensation insurance must satisfy all applicable statutory requirements. 
  
 (ii) The employers liability, and if necessary commercial umbrella, limits shall not be less than $5,000,000 each accident for bodily
injury by accident or $5,000,000 each employee for bodily injury by disease. 
  
 (b) Liability. Development Manager shall maintain during the Term commercial general liability (CGL) and, if necessary, commercial umbrella insurance with a limit of not less than: 
  

						
	(i)	 	Commercial General Liability	  	$	5,000,000
			
	(ii)	 	 General Aggregate Limit
	  	$	10,000,000
			
	(iii)	 	 Products/Completed Operations Aggregate Limit
	  	$	10,000,000
			
	(iv)	 	 Personal & Advertising Injury Limit
	  	$	5,000,000

  
 CGL insurance shall be written on ISO
occurrence form CG O0 01 10 93 (or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, independent contractors, broad form property damage and broad form property damage including completed
operations, products-completed operations, and personal injury and advertising injury. Owner shall be included as an additional insured under the CGL, using ISO Additional Insured Endorsement CG 20 10 11 85 or a substitute providing equivalent
coverage, and under the commercial umbrella, if any. This insurance, including insurance provided under the commercial 

  

 33 

 
umbrella, if any, shall apply as secondary insurance with respect to any other insurance or self-insurance programs afforded to, or maintained by, Owner.
There shall be no endorsement or modification of the CGL limiting the scope of coverage for liability arising from pollution, explosion, collapse, or underground property damage. 
  
 (c) Business Auto and Umbrella Liability Insurance. Development Manager shall maintain business auto
liability and, if necessary, commercial umbrella liability insurance with a limit of not less than $5,000,000 each accident. Such insurance shall cover liability arising out of any auto (including owned, hired and non-owned autos). Business auto
coverage shall be written on ISO form CA 00 01, CA 00 05, CA 00 12, CA 00 20, or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage equivalent to that
provided in the 1990 and later editions of CA 00 01. 
  
 (d) E&O Insurance. Development Manager shall maintain, at Development Manager’s, expense errors and omissions insurance with reasonably appropriate levels of coverage (i.e., not less than $5,000,000 so long as such coverage
is available at commercially reasonable rates). 
  
 (e) Other Insurance. Development Manager shall maintain at Owner’s cost such other kinds of insurance as may be required by Owner or by contract documents, each such policy to be in the amount stipulated in the contract
documents unless a different amount is hereinafter designated or is otherwise prescribed in writing by Owner. 
  
 6.2 General Requirements. 
  
 6.2.1 Policy and Certificate Requirements. All insurance provided by either Owner or Development Manager pursuant to this Agreement
shall be maintained in effect throughout the Term and shall be written with companies and on policy terms and conditions, including deductibles (if greater than any limit stated above) and limits (if less than any limit stated above), approved by
Owner. All deductibles shall be the sole and exclusive responsibility of the Party obligated to maintain the insurance hereunder. Each policy shall provide that it shall not be canceled without thirty (30) days prior written notice to both Parties
and it shall not be invalidated or reduced by any act of either Party, their Affiliates, Authorized Representatives or any other person having an interest in the Property or by foreclosure or other change in title to the Property. Development
Manager shall, with regard to the coverages required of it, deliver certificates of insurance evidencing the required coverages within ten (10) days after the date of this Agreement and at the expiration within thirty (30) days prior to the
expiration of any policy already in effect. The other Party may by notice request a certified copy of each such policy in which case the appropriate Party shall, within a reasonable period, provide such a certified copy. 
  
 6.2.2 Adjustment of Claims. In the event of any loss
or claim under a policy of insurance maintained by or on behalf of Owner with respect to a particular Property, Development Manager shall provide Owner with notice of the same promptly after Development Manager knows of such loss or claim and shall
fully cooperate with Owner and comply with the conditions and terms of such insurance policies to the end that payment may be obtained for any covered loss; provided, however, that nothing herein shall authorize Development Manager to compromise or
settle any loss or claim under a policy of insurance maintained by or on behalf of Owner without Owner’s prior 

  

 34 

 
approval, provided that Owner’s approval shall not be unreasonably withheld or delayed if such loss or claim is less than $100,000. 
  
 6.3 Owner Coverage. Development Manager shall use Commercially
Reasonable Efforts to procure and maintain or cause to be procured and maintained on behalf of Owner with respect to the Wholly-Owned Assets such policies of insurance in such amounts and in accordance with the standards as are detailed in
Exhibit “H” attached hereto and such additional insurance against other risks of loss to each Project as, from time to time, may be required by any Project Lender making a loan to Owner or as may be required by law. Development
Manager shall have no liability of any kind relating to the failure to procure or maintain such insurance so long as Development Manager shall have used Commercially Reasonable Efforts to assist Owner in procuring and maintaining such insurance.
Owner shall make all decisions regarding coverage and type of policy, and, notwithstanding anything to the contrary contained in this Agreement, including Exhibit “H”, Owner agrees that Owner’s insurance in place on the date of
this Agreement is satisfactory and shall continue to remain satisfactory unless and until Owner advises Development Manager in writing of different insurance requirements for Owner’s insurance. Owner’s insurance shall name Owner as a named
insured and Owner’s members, Development Manager and COLP as additional insureds. Owner’s insurance shall be primary. 
  
 6.4 Waiver of Subrogation. Notwithstanding anything to the contrary herein, to the extent permitted by law and without affecting the coverage
provided by insurance required to be maintained hereunder, each of the Owners and Development Manager waives any right to recover against the other (and the other’s agents, officers, directors and employees) on account of any and all claims it
may have against the other (and the other’s agents, officers, directors and employees) with respect to the insurance actually carried to the extent of the proceeds realized from such insurance coverage that are applied to such claim.

  
 6.5 Fidelity Bond. Development Manager shall obtain at
the Owners’ expense (except to the extent of any premium increase due to a claim thereon, which such increase shall be at Development Manager’s sole cost and expense), deliver to the Owners and maintain throughout the term of this
Agreement a fidelity bond policy covering Development Manager, its Affiliates, employees and agent with a liability amount of at least One Million Dollars ($1,000,000). The Owners, in the exercise of their reasonable discretion, may require
Development Manager to increase the amount of such bond at the Owners’ expense (except as provided above) if the Owners determine that circumstances reasonably warrant such increase in view of the risks involved. 
  
 ARTICLE VII 
 MAINTENANCE OF ACCOUNTS; FINANCIAL REPORTING 
  
 7.1 Disbursement of Funds. All funds for the fulfillment of Development Manager’s duties and obligations under this Agreement with respect to
the Projects (other than those duties and obligations to be paid for by Development Manager from the Base Development Fee, including those listed on Schedule “4.1.1”) shall be Owner’s responsibility and shall be advanced from
the applicable “Operating Account” (as hereinafter defined). Development Manager shall not commingle the funds of one Owner with the any funds of another Owner nor with any funds of Development Manager or any other Person. Subject to the
other limitations of this Agreement, including compliance with the applicable Project Budget and Section 4.4, during the term of this 

  

 35 

 
Agreement, Development Manager may withdraw funds from the Operating Account without the approval of Owner, so long as (1) no event under Section 10.1 of
this Agreement shall have occurred, (2) Development Manager shall not have sent a written notice of termination of this Agreement under Section 10.7 of this Agreement, or (3) Owner shall not have provided written notice to Development Manager to the
contrary. 
  
 7.2 Records. 
  
 7.2.1 Maintenance of Records. Development Manager
shall keep, during the term of this Agreement and for at least three (3) years thereafter (or, if sooner, when turned over to the Owner in accordance with this Agreement), all books of account and other records (including complete financial records
and a set of working Drawings and Specifications for each Project, and addenda and change orders thereto) for each Project at the Development Manager Northern California Office for such Project or at such other location as may be approved in writing
by Owner. All such records and information shall be the property of Owner, and shall include records relating to the costs of each Project and construction advances, original vouchers, statements, receipted bills, invoices and all other records
covering all collections, if any, disbursements and other records and correspondence in connection with the development and construction of each Project. All records and accounts shall be maintained by Development Manager on an accrual basis and
shall be sufficient to permit the preparation of financial statements in accordance with generally accepted accounting principles, shall be adequate to provide Owner with all reasonable financial information as may be needed by Owner, and
Development Manager shall use reasonable efforts to ensure that such records shall be supported by sufficient documentation to permit Owner and its auditors to verify that such entries are properly and accurately recorded. Development Manager will
provide to owner periodically copies of all of Owner’s bank account statements and reports of actual cash receipts and expenditures. 
  
 7.3 Financial Accountability. Development Manager shall maintain such control over accounting and financial transactions as is reasonably necessary
to protect Owner’s assets from theft, error or fraudulent activity. 
  
 7.4 Informing Owner; Reports. Development Manager shall keep Owner informed on a regular basis of the progress of the construction of each job included in, and all other material matters relating to, each
Project, including the preparation of such reports as are provided for herein or as may reasonably be requested by Owner. Without limitation on the foregoing, at all times during the Term, Development Manager shall promptly furnish Owner with copies
of all papers furnished to insurance providers and lenders, and Development Manager shall prepare and deliver to Owner a written report on such Project (the “Monthly Report”) by the thirtieth (30th) day of each month based on the actual status of such Project through the end of the prior month and including an estimate for the status of such
Project for the current month; and, in addition, following any meeting of the Development Team (whether or not attended by all members of the Development Team), Development Manager shall deliver a report concerning such meeting promptly after it
occurs. At the time of the delivery of the Monthly Report (and each report of the Development Team meeting), Development Manager shall make all supporting documentation available for inspection by Owner at the Development Manager Office for such
Project. Each Monthly Report for each Project shall contain the following information concerning such Project: 
  

 36 

 7.4.1 A job cost report for each AFE setting forth all line items within such AFE which
will include costs paid to date and an estimate of the total cost to complete such Project by AFE; 
  
 7.4.2 Notes from each meeting of the Development Team for such Project, if available; 
  
 7.4.3 Property specific reports as identified on Exhibit
“I” attached hereto (e.g., (a) with respect to Mission Bay, the status of “Reimbursement and Payment Rights”, the status of the performance of Owner obligations under “Owner Participation Agreements”, including the
status of any requirements with respect to public improvements, open space, in-lieu payments, and affordable and rental housing, (b) the determination and balance of the “West Bluffs Earn-out Amount”, and (c) with respect to Alameda, the
balance of the “Shortfall Loan”, the balance of the “Pre-Development Loan” and the status of any take-downs and contributions to the Venture; 
  
 7.4.4 Development Manager shall deliver to Owner any financial, sales and operational reports, disclosures
and statements provided by other Venture members; and 
  
 7.4.5 Any other information, which may from time to time be reasonably requested by Owner and without limitation, Development Manager, shall cooperate, to the extent reasonably requested by Owner, in the preparation
of Owner’s quarterly and annual financial statements. 
  
 Notwithstanding anything to the contrary contained in this Section 7.4, (a) to the extent that the written reports regularly produced by Development Manager for the twelve (12) months prior to the date hereof in connection with each Project
include the information required in Sections 7.4.1 through 7.4.9, hereof, inclusive, the form of such reports shall be satisfactory under this Agreement and (b) Development Manager and Owner shall use Commercially Reasonable Efforts to agree on the
specific written reports in connection with this Section 7.4 within thirty (30) days following the date of this Agreement. 
  
 7.5 Right to Audit. Owner reserves the right, at any time, at Owner’s sole cost and expense, during the period commencing on the date hereof
through the date which is the later of (i) three (3) years after the termination of this Agreement, or (ii) the expiration of federal and state statute of limitation in connection with the filing of Owner’s tax returns, to examine, copy and
audit the books and records maintained by Development Manager in connection with the Projects. During the period commencing on the date hereof through the date that is the later of (i) three (3) years after the termination of this Agreement, or (ii)
the expiration of federal and state statute of limitation in connection with the filing of Owner’s tax returns, Development Manager shall permit Owner and its Authorized Representatives upon reasonable notice during normal business hours access
to all books, records and accounts relating to the Projects and all correspondence pertaining thereto. In connection with any such examination, audit or inspection, Owner and its Authorized Representatives shall have the right upon reasonable notice
and during normal business hours to question Development Manager and its employees concerning the books and records. If Owner shall notify Development Manager of any weaknesses, errors or discrepancies in Development Manager’s accounting,
financial transactions or recordkeeping concerning the Projects, Development Manager shall use reasonable efforts to correct such weaknesses, errors or discrepancies as soon as possible 

  

 37 

 
after receipt of notice, and Development Manager shall promptly notify Owner of the action taken to correct such weaknesses, errors or discrepancies.

  
 7.6 Custody. All books, records, accounts and other
information relating to the Projects and required to be maintained by Development Manager hereunder shall be the property of Owner. Upon request of Owner, or upon termination of this Agreement, Development Manager shall immediately deliver to Owner
all books, records, accounts, plans, specifications, surveys and other information relating to the Projects, including all correspondence, without any charge or expense to Owner. Development Manager may retain a copy of all such information at its
sole cost and expense. 
  
 7.7 Inspection. Owner reserves
the right for itself and its Authorized Representatives to inspect, examine and test the construction and development of each respective Project at Owner’s expense. In connection with any such examination, inspection or test, Owner and its
Authorized Representatives shall have the right at reasonable times and upon reasonable notice to question Development Manager and its employees concerning such construction and development. In connection with any such examination, inspection or
test, Development Manager shall make available to Owner and its Authorized Representatives such facilities and office or other working space within the office space at the Project used by Development Manager as may be reasonably requested.
Notwithstanding anything contained herein to the contrary, the right of Owner to inspect, examine and test the construction and development of each Project shall not in any respect diminish, limit or impair the obligations of Development Manager
under this Agreement. Without limiting the foregoing, no approval by Owner of any plans, specifications, drawings or other matters relating to the design or construction of any Project or any other improvement shall expose Owner to any liability to
any third party, nor shall any approval by Owner be deemed to constitute any representation or judgment by Owner that such Project is safe, reliable, sufficient or suitable for any purpose or that the same complies with any Requirements. 

 
 7.8 Quarterly and Annual Reports. Development Manager shall prepare
and deliver to Owner a quarterly and annual written report on each Project. Each such report shall include, without limitation, financial statements (balance sheet and income statement) with respect to each Project and historical data with respect
to each Project. 
  
 7.9 Additional Reports. Development
Manager shall coordinate and facilitate the preparation of financial and operational reports, disclosures and statements required under the terms of any loan documents and such other reports as may be reasonably requested by Owner, subject to
Section 5.3. Development Manager shall coordinate and facilitate the preparation of financial and operational reports, disclosures and statements required to be prepared by Owner under the terms of any documents in connection with the Venture,
including Venture Agreements. Development Manager shall provide to Owner details of any anticipated Venture capital contributions and distributions. 
  
 7.10 Working Capital Reserve and Other Reserves. Development Manager shall establish with funds provided by Owner and maintain reasonable reserves
in an account in the name of each Owner for each Project (the “Reserve Accounts”) (but not less than $2,500,000 in the aggregate for all Reserve Accounts and, in any event, not less than an amount otherwise specified by the Owners,
without taking into account reserves for taxes and insurance) for future costs, expenses and payments 

  

 38 

 
or for substantial costs (including capital repairs, improvements and replacements), to the extent the payment of such costs is not contemplated by other
reserves maintained by or on behalf of the Owners. The Reserve Accounts shall be established at Bank of America or such other bank approved by Owner. 
  
 7.11 Owner Accounts. Development Manager shall deposit all funds of each Owner into a separate federally insured operating account (each an
“Operating Account”). In addition, Development Manager shall transfer portions of the balance of each Operating Account which are not immediately needed to pay for such Owner’s operations from time to time plus reasonable
working capital and reserves in accordance with the Project Budget to a bank controlled investment account (that invests in high grade commercial paper) in accordance with sound cash management principles (“Money Market Account”).
The separate Operating Accounts and Money Market Account (collectively, the “Accounts”) shall be maintained in the name of the applicable Owner with a money center financial institution approved by the applicable Owner. Development
Manager shall direct the investment of the funds within the Accounts, subject to the approval by the Owner. So long as Development Manager shall comply with this Section 7.11, Development Manager shall have no responsibility or liability for any
investment losses or other returns on investment (or lack thereof) in any Operating Account or Money Market Account. Withdrawals from the Accounts shall be made upon such signature or signatures as Development Manager may designate from time to time
as approved by Owner in Owner’s sole discretion, and Development Manager is authorized to act as agent for Owner in respect of the Accounts, so long as (1) no event under Section 10.1 of this Agreement shall have occurred, (2) Development
Manager shall not have sent a written notice of termination of this Agreement under Section 10.7 of this Agreement, or (3) Owner shall not have provided written notice to Development Manager to the contrary. On or about the execution of this
Agreement, the initial funding in the aggregate of all the Operating Accounts shall be not less than Five Million Dollars ($5,000,000). 
  

 39 

 ARTICLE VIII 
 INDEMNIFICATION 
  
 8.1
Indemnification by Development Manager. Subject to Sections 6.4 and 12.18 hereof, Development Manager shall indemnify, defend and hold harmless Owner and its Affiliates from and against any and all third-party claims (1) to the extent caused
by the gross negligence, fraud or willful misconduct of Development Manager or (2) a breach of this Agreement or, to the extent caused by Development Manager’s acts or omissions, a breach by Development Manager under any Collateral Agreements.
The rights of Owner under this Section 8.1 shall inure to the benefit of any and all of Owner and its direct and indirect owners and their respective officers, directors, partners, members, employees, successors and assigns, and to the benefit of
any and all persons or legal entities which are Affiliates of Owner and who are, could be or are alleged to be, liable for the obligations of Owner and any and all of their respective officers, directors, partners, members, employees, successors and
assigns. NOTWITHSTANDING THE FOREGOING, DEVELOPMENT MANAGER’S MAXIMUM LIABILITY FOR ANY AND ALL CLAIMS OF ANY KIND UNDER THIS AGREEMENT SHALL BE LIMITED TO “DEVELOPMENT MANAGER’S LIABILITY CAP” (AS HEREINAFTER DEFINED IN SECTION
12.18.1(B)), PROVIDED THAT SUCH LIMITATION SHALL BE SUBJECT TO THE “CAP EXCLUSIONS” (AS DEFINED IN SECTION 12.18.1(b)) AND OWNER’S RIGHT TO RECOVER THE CAP EXCLUSIONS AS PROVIDED IN SECTION 12.18.1(b). 
  

					
	 	  	 	  	 
	 FOCIL Holdings on behalf
	  	 	  	 Development Manager

	 of all “Owners”
	  	 	  	 

  

 40 

 8.2 Indemnification by Owner. Subject to Sections 6.4 and 12.18 hereof, Owner shall indemnify,
defend and hold harmless Development Manager and COLP from and against any and all third-party claims (solely in its capacity as Development Manager under this Agreement) in any matter related to any Project, including any act of Development Manager
associated with any Project except to the extent Development Manager is required to indemnify Owner pursuant to Section 8.1 above. 
  
 8.3 Indemnification Obligations. The indemnification obligations under this Agreement shall be subject to the following provisions: The party
seeking indemnification (“Indemnities”) shall notify the other party (“Indemnitor”) of any claim against Indemnities within fifteen (15) Business Days after it has notice of such claim, but failure to notify
Indemnitor shall in no case prejudice the rights of Indemnities under this Agreement unless Indemnitor shall be prejudiced by such failure and then only to the extent of such prejudice. Should Indemnitor fail to discharge or undertake to defend
Indemnities against such liability (with counsel approved by Indemnities), within fifteen (15) Business Days after Indemnities gives Indemnitor written notice of the same, then Indemnities may settle such claim, and recover from Indemnitor the
amount of such settlement consideration together with the costs and expenses of Indemnities, including reasonable attorneys’ fees, related to any actions, suits or judgments incident to such claim to the extent covered by such indemnities, and
incurred by Indemnities in effecting such settlement. Indemnities shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of Indemnities unless: (i) the employment of such
counsel shall have been authorized in writing by Indemnitor in connection with the defense of such action, which authorization shall not be unreasonably withheld by Indemnitor, or (ii) Indemnitor shall not have employed counsel to direct the defense
of such action (in which case Indemnitor shall not have the right to direct the defense of such action or of Indemnities), in either event such fees and expenses shall be borne by Indemnitor to the extent that such fees and expenses are reasonably
incurred in connection with a claim covered by the indemnities hereunder. Additionally, at any time Indemnities determines (a) that counsel selected by Indemnitor and accepted by Indemnities is not defending any claim in a professional manner, in
accordance with the highest standards of legal ethics and utilizing the skills and professional judgment which are customarily employed in the San Francisco area by legal counsel who are experienced and expert in the defense of matters similar to
such claims, (b) that there may be legal defenses available to him, her or it that are different from or in addition to those available to any person being concurrently represented by such counsel selected by Indemnitor and accepted by Indemnities,
(c) that such counsel selected by Indemnitor and accepted by Indemnities has a conflict of interest that any indemnitee should not waive, or (d) there is a conflict of interest that should be waived and either Indemnitor or such counsel is not
willing to execute a conflict waiver in form and substance reasonably satisfactory to Indemnities, then Indemnities may notify Indemnitor and such counsel of such fact. If the performance of such counsel does not immediately (within 10 days after
such notice) conform to all of the above standards (with respect to subparagraph (a)), or if the perceived defense or conflict of interest issue is not immediately (within 10 days after such notice) resolved to the satisfaction of counsel and
Indemnities (with respect to subparagraphs (b) (c) and (d)), then within 10 days thereafter Indemnities may (x) engage new legal counsel (reasonably acceptable to Indemnitor) to undertake defense of any claims, and (y) cause such new legal counsel
to notify Indemnitor that it has been so engaged and that it has read and agrees to abide by the provisions of this Agreement, in which event such fees and expenses of the 

  

 41 

 
new legal counsel shall be borne by Indemnitor to the extent that such fees and expenses are reasonably incurred in connection with a claim covered by the
indemnities hereunder. The indemnification obligations of Indemnitor under this Agreement shall also benefit any present or future advisor, trustee, director, officer, partner, member, manager, employee, beneficiary, shareholder, participant or
agent of or in Indemnities or any entity now or hereafter having a direct or indirect ownership interest in Indemnities. 
  
 8.4 Survival. The provisions of this Article VIII shall survive the termination or expiration of this Agreement. 
  
 ARTICLE IX 
 COMPENSATION 
  
 9.1 Base Development Fee. Subject to Sections 9.7, 9.9 and 9.10, Development Manager will be paid a fee (the “Base Development Fee”) for its services under this Agreement, which fee will
commence as of November 1, 2004 (with the understanding that Development Manager will receive the portion of the Base Development Fee for the period from November 1, 2004, up to the date of this Agreement through the true-up process in Section 5.4
of the Purchase Agreement), will be paid on a monthly basis in arrears in accordance with Exhibit “J” attached hereto and shall in no event exceed a total of Thirty Seven Million Dollars ($37,000,000).  
  
 9.2 Development Incentive Fee. Subject to Section 9.7, 9.8, 9.9
and 9.10, Development Manager shall be entitled to receive, from time to time, an incentive fee as described in this Section 9.2 (“Development Incentive Fee”) based upon the “IRR Rate” (as defined in Exhibit
“K”). Subject to the foregoing, Owner shall pay to Development Manager simultaneously with the distribution by FOCIL Holdings to its members of any distributions of cash, a Development Incentive Fee computed as follows:

  
 9.2.1 First Level. Development Manager
shall not be entitled to receive any Development Incentive Fee until the members of FOCIL Holdings shall have received distributions equal to the then “*** IRR Deficiency” (as defined in Exhibit “K”), and there
shall be no payment of a Development Incentive Fee under Sections 9.2.2 or 9.2.3 at any time when there is a positive *** IRR Deficiency. Any balance of a distribution by FOCIL Holdings remaining after the members of FOCIL Holdings shall have
achieved at *** IRR Deficiency shall not be distributed to the members of FOCIL Holdings in its entirety; instead, a portion of the same shall be paid to Development Manager as a Development Incentive Fee and a portion shall be distributed to the
members of FOCIL Holdings in accordance with Sections 9.2.2 and 9.2.3 below. 
  
 9.2.2 Second Level. Second, the balance (remaining after the then *** IRR Deficiency shall have been achieved in accordance with Section 9.2.1 above), if any, shall be allocated *** to be paid to Development
Manager as a Development Incentive Fee and *** shall be distributed by FOCIL Holdings to its members until its members shall have received an amount equal to the then “*** IRR Deficiency” (as defined in Exhibit “K”)
and there shall be no payment of a Development Incentive Fee under Section 9.2.3 at any time where there is a positive *** IRR Deficiency. 
  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 42 

 9.2.3 Third Level. Third, the balance (remaining after the then *** IRR Deficiency
shall have been achieved in accordance with Section 9.2.2 above), if any, shall be allocated *** to be paid to Development Manager as a Development Incentive Fee and *** shall be distributed by FOCIL Holdings to its members. The Development
Incentive Fee shall survive termination of this Agreement pursuant to Section 10.3 and shall be subject to Section 9.7. 
  
 9.3 Earn-Out Development Fees. Development Manager shall be entitled to receive the “Mission Bay Earn-Out Amount” and the “West
Bluffs Earn-Out Amount” (as such terms are defined on Exhibit “L”) determined in accordance with Exhibit “L” attached hereto (collectively, the “Earn-Out Development Fees”). The Earn-Out
Development Fees shall survive a termination of this Agreement under Article X. 
  
 9.4 West Bluffs Incentive Fee. Subject to Section 9.9, in addition to the “West Bluffs Earn-Out Amount” (as defined in Exhibit “L”), if the closing under a contract (a
“West Bluffs Sale Agreement”) for the sale of any portion of the West Bluffs Assets occurs before ***, once Owner shall have received “Net West Bluffs Sales Proceeds” (as hereinafter defined) in excess of ***, Owner shall
pay to Development Manager a fee (the “West Bluffs Incentive Fee”) equal *** of any Net West Bluffs Sales Proceeds in excess of *** received under such West Bluffs Sale Agreement as and when received by Owner. “Net West
Bluffs Sales Proceeds” means the excess of (a) the proceeds received under a West Bluffs Sale Agreement from the sale of all or a portion of the West Bluffs Assets after the date hereof and before *** (whether in a single closing or
pursuant to a rolling option, phased lot takedown or Buyer financed sale), over (b) closing costs and all costs incurred by Owner in respect of the West Bluffs Assets after the date of this Agreement, other than interest, fees and any other amounts
paid under the CF Capital Financing or the CFC Financing. Notwithstanding anything to the contrary, Owner shall have no obligation to pay to Development Manager any West Bluffs Incentive Fee (x) unless the closing of the sale of any portion of the
West Bluffs Assets shall have occurred before ***, and (y) until the Net West Bluffs Sales Proceeds actually received by Owner exceeds ***. The West Bluffs Incentive Fee shall survive the termination of this Agreement pursuant to Section 10.2 and
10.3 and shall not be subject to Section 9.7. 
  
 9.5 Closing
Incentive Fee. Subject to Section 9.9, Development Manager shall be entitled to receive the “Closing Incentive Fee” (as defined in Exhibit “M” attached hereto) to be paid concurrently with the closing of the sale of a
“Participating Property” (as hereinafter defined). The Closing Incentive Fee shall survive the termination of this Agreement pursuant to Article X and shall not be subject to Section 9.7. 
  
 9.6 Cost-Saving Incentive Fee. Subject to Section 9.9, Owner shall pay
to Development Manager and Development Manager shall be entitled to receive a fee (the “Cost-Saving Incentive Fee”) for each of the “Mission Bay North of Channel” and “Mission Bay South of Channel” portions of
the Mission Bay Project (each a “Mission Bay Subproject”) in an amount, for each such portion, equal to the lesser of (i) *** of “Hard Public Infrastructure Costs” (as defined in the “Updated Proforma”) after the
post-closing true-up contemplated in Section 5.4 of the Purchase Agreement, or (ii) the amount by which Development Manager shall have achieved Final Completion with respect to the applicable Mission Bay Subproject at a total cost for all public and
private infrastructure costs less than specified in the Updated Proforma for all public and private infrastructure costs after the post-closing true-up contemplated by Section 5.4 of the Purchase Agreement, provided that Owner 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT T0 A REQUEST FOR CONFIDENTIAL TREATMENT

  
 43 

 
shall only be obligated to pay the Cost-Saving Incentive Fee if and when Owner shall have received, under the “Acquisition Agreement” (as defined
in the Purchase Agreement”), from the “RDA” the construction management fee of *** of the Hard Public Infrastructure Costs for such Mission Bay Subproject (the “RDA CM Fee”). As an example, if (x) the total
public and private infrastructure costs for Mission Bay North of Channel in the Updated Proforma were ***, (y) actual public and private infrastructure costs upon completion of the Mission Bay North of Channel work were *** and (z) *** of such costs
were Hard Public Infrastructure Costs, then Development Manager would be entitled to a Cost-Saving Incentive Fee of **** if, when and to the extent Owner were to receive the RDA CM Fee for such Mission Bay Subproject. If, prior to Final Completion
of a Mission Bay Subproject, Owner shall have received a portion of the RDA CM Fee for such Mission Bay Subproject, then, upon Final Completion of such Mission Bay Subproject, Owner will pay to Development Manager any applicable Cost-Saving
Incentive Fee for such Mission Bay Subproject to the extent of the RDA CM Fee received by Owner for such Mission Bay Subproject (i.e., if Owner shall have received *** of the RDA CM Fee for such Mission Bay Subproject as of the date of Final
Completion of such Mission Bay Subproject, and if the amount by which Development Manager shall have achieved Final Completion of such Mission Bay Subproject at a total cost for all public and private infrastructure costs is less than specified in
the Updated Proforma for all public and private infrastructure costs for such Mission Bay Subproject after the post-closing true-up contemplated by Section 5.4 of the Purchase Agreement, Development Manager would be paid *** and be paid the
additional *** as Owner receives from the RDA any remaining RDA CM Fee). The Cost-Savings Incentive Fee shall survive the termination of this Agreement pursuant to Section 10.3, shall and shall not be subject to Section 9.7. 
  
 9.7 Refund of Development Incentive Fee. Notwithstanding anything to
the contrary in this Agreement, if any member of FOCIL Holdings makes any contribution to FOCIL Holdings after any amount has been paid to Development Manager under Section 9.2, then Development Manager shall reimburse Owner such portion of the
Development Incentive Fee paid to Development Manager under Section 9.2 (in reverse order) until on the date of such contribution by such member to FOCIL Holdings, (1) the aggregate amount of reimbursement to Owner by Development Manager then or
theretofore made by reason of this Section 9.7 equals (2) the aggregate amount by which the Development Incentive Fee then or theretofore paid to Development Manager under such subsection exceeds the Development Incentive Fee that would have been
payable had the Development Incentive Fee been paid after such contribution was made. For example, if the Second Level of the Development Incentive Fee (under Section 9.2.2) is achieved and *** of distributions are made on July 1, 2008, members of
FOCIL Holdings would receive *** and Development Manager would receive ***. If members of FOCIL Holding, on March 31, 2009 make an additional contribution of ***, and, based on the revised calculation of the Development Incentive Fee as of March 31,
2009, considering the additional contribution, Development Manager would have only earned a Development Incentive Fee pursuant to Section 9.2.2 of ***, then Development Manager shall reimburse Owner ***. If Development Manager fails to so reimburse
Owner, Owner shall have the right to offset and reduce any future Development Incentive Fee or future Base Development Fee to be paid to Development Manager for the unpaid amount to be reimbursed under this Section 9.7. Notwithstanding the
foregoing, if Owner terminates this Agreement pursuant to Section 10.3, Development Manager’s obligation, if any, to reimburse portions of the Development Incentive Fee pursuant to this Section 9.7 shall be limited to portions of the
Development Incentive Fee paid to Development Manager after the date of termination of this Agreement, and Development Manager 
  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 44 

 
shall have no obligation to reimburse Owner for any portion of the Development Incentive Fee received by Development Manager prior to the date of such
termination. 
  
 9.8 Limitation on Fees. Nothing
contained in Section 9.2 or elsewhere in this Agreement shall require Owner or FOCIL Holdings to make distributions to its members or to sell portions of the “Mission Bay Land” and the “West Bluffs Lots”.
Development Manager shall have no right to any Development Incentive Fee except as and when distributions are made by FOCIL Holdings to its members. Distributions will be made by FOCIL Holdings to its members and by Owner to FOCIL Holdings in FOCIL
Holding’s discretion. Each of Owner and FOCIL Holdings, in its sole, absolute and non-reviewable discretion, may reserve any amounts against distributions to its members. Development Manager shall have no right to any Development Incentive Fees
earned but not paid as a result of such reserves and shall only be entitled to payment of such Development Incentive Fees upon distributions by FOCIL Holdings to its members in accordance with Section 9.2 hereof. 
  
 9.9 Other Payments. Except as expressly set forth in this Article IX,
Section 5.3 or as otherwise approved by Owner, Development Manager shall not receive any compensation, fees, reimbursement or other payment for its services as Development Manager under this Agreement. Without limitation on the foregoing, and
notwithstanding anything to the contrary in any Project Budget (or any amendment thereto), the fees above in this Article IX (the “Development Fees”) include all of Development Manager’s personnel expenses and overhead,
including the salary and benefits of Development Manager’s employees assigned to the Projects, expenditures relating to travel, living expenses incurred in connection with travel, long distance communication charges, and postage, overnight
courier, facsimile or messenger charges. In the event that Owner requests that Development Manager perform services beyond the scope of this Agreement, Development Manager shall not be obligated to perform the same unless Owner agrees to compensate
Development Manager for such additional services pursuant to the terms of a separate written agreement between Development Manager and Owner. Notwithstanding anything to the contrary contained in this Agreement, (a) Development Manager shall have no
obligation to advance Development Manager’s funds to cover Required Funds; and (b) no compensation, fees, reimbursement or other compensation shall be payable to Development Manager after this Agreement has terminated except as expressly
provided in Article X. 
  
 9.10 Deferred Parcel Transfer and
West Bluffs Affordable Housing Remedies. Notwithstanding the foregoing provisions of this Article IX, Development Manager shall be responsible for and shall cause the Applicable Seller to timely satisfy the obligations under Sections 1.3.3,
1.5.3 and 1.9.3 of the Purchase Agreement and Exhibit “L” of this Agreement and, in addition, Owner shall have the right to offset and reduce any Development Incentive Fee and future Base Development Fee to be paid to Development
Manager (other than Delinquent Fee Payments) for any amounts due Owner under Sections 1.3.3, 1.5.3 and 1.9.3 of the Purchase Agreement and Exhibit “L” of this Agreement and any damages due Buyer and Owner as a result of the
“Applicable Seller” (as defined in the Purchase Agreement) failing to timely satisfy such obligations under the Purchase Agreement. Development Manager hereby waives and agrees not to assert or take advantage of any guarantor or
surety defenses. 
  

 45 

 ARTICLE X 
 TERMINATION 
  
 10.1
Development Manager Default. Owner shall have the right to terminate this Agreement at any time with respect to the Projects, by delivering a termination notice to Development Manager (a “Termination Notice”), if any of the
following events occurs (the “Development Manager Defaults”): 
  
 10.1.1 Uncured Breach. Any material breach by Development Manager under this Agreement, which material breach is not cured within
the Cure Period, if any, including any total and complete suspension or discontinuance by Development Manager of its material duties or services under this Agreement for a period of more than thirty (30) days (subject to delays due to Force Majeure,
Owner’s express written consent or as implied by the milestones in the applicable Project Budget); 
  
 10.1.2 Improper Conduct. Other than an “Excusable Employee Wrongful Event” (as defined herein), Development
Manager shall be grossly negligent or shall engage in fraud, or willful misconduct, including any of the following: (a) Development Manager intentionally commingles any funds intended to be used for the Projects with any funds of Development
Manager, or uses funds intended to be used for the Projects for purposes unrelated to the Projects or fails to return such funds within three (3) business days of Owner’s request; or (b) Development Manager or any of its Affiliates commits an
act of theft or embezzlement against any Owner; or 
  
 10.1.3 Bankruptcy/Dissolution Event. There is a Bankruptcy/Dissolution Event with respect to Development Manager or CDX. 
  
 An “Excusable Employee Wrongful Event” shall mean the fraud, gross negligence or willful misconduct of a non-supervisory employee in connection with any
Project if (i) senior management or ownership of Development Manager, CLDC or COLP had no knowledge of or involvement with such acts or omissions, and (ii) within forty-five (45) days of discovery of such acts or omissions, Development Manager
permanently removes such employee(s) from the Projects, promptly implements procedures to prohibit the recurrence of similar acts and reimburses Owner and its Affiliates for any loss, liability, damage, cost or expense incurred to the extent
resulting from such fraud, gross negligence or willful misconduct (and indemnifies Owner and its Affiliates for any of the same arising thereafter). 
  
 10.2 Change in Control. Owner shall have the right to terminate this Agreement at any time with respect to the Projects, by notice to Development
Manager, if a Change in Control has occurred with respect to Development Manager or CDX. 
  
 10.3 Termination Without Cause. From and after the “Limited Termination Period Date” (as hereinafter defined), Owner shall have the right to terminate this Agreement without cause upon thirty (30)
days’ written notice to Development Manager. Owner may not exercise its rights under this Section 10.3 until after the “Limited Termination Period Date” (as defined herein). The “Limited Termination Period Date” shall
mean the date that is three (3) years after the date hereof; provided, however, such date shall be extended to the date that is five (5) years after the date hereof if (a) Owner shall have collected during the first three (3) years of this Agreement
at least 95% of the 

  

 46 

 
proforma revenue shown on the Updated Proforma after the post-closing true-up contemplated by Section 5.4 of the Purchase Agreement, and (b) Development
Manager or its Affiliates shall not have materially breached this Agreement or the Purchase Agreement, which breach is not cured within the Cure Period. 
  
 10.4 Remedies Not Exclusive. Except as may otherwise be expressly provided in this Agreement: 
  
 10.4.1 The exercise of one or more of the rights and
remedies under this Agreement shall not preclude the exercise of any other right or remedy under this Agreement, at law or in equity; and 
  
 10.4.2 Damages at law may not be an adequate remedy for a breach or threatened breach of this Agreement and in the event of a breach or
threatened breach of any provision hereunder, the respective rights and obligations hereunder shall be enforceable by specific performance, injunction or other equitable remedy. 
  
 10.5 Termination Notice. The Termination Notice shall specify the basis for the termination and shall become
effective ten (10) Business Days after the date of the Termination Notice. Notwithstanding the foregoing, Development Manager may dispute the existence of grounds for the termination described in subsection 10.1.1 or 10.1.2 by written notice
(“Arbitration Notice”) to Owner within fifteen (15) days after its receipt of the Termination Notice. If Development Manager fails to provide an Arbitration Notice within such fifteen (15) day period, then notwithstanding anything
to the contrary herein, Development Manager shall have no right to dispute the effectiveness of the Termination Notice, which shall be conclusive. In the event an Arbitration Notice is given within the period set forth above, then (a) the dispute
shall be resolved by arbitration as provided in Section 10.9, and (b) if the arbitrators uphold the termination, then the Termination Notice shall thereupon become effective. Notwithstanding the foregoing, a Termination Notice shall become effective
immediately in connection with a termination described in subsection 10.1.3, 10.2 or 10.3 above. 
  
 10.6 Development Fees Upon Termination. If a Termination Notice becomes effective, then: 
  
 10.6.1 In the event Owner terminates this Agreement under
Section 10.1, Development Manager shall not be entitled to receive any portion of the Base Development Fee, the Development Incentive Fee, the West Bluffs Incentive Fee or the Cost Saving Incentive Fee other than Delinquent Fee Payments; and
Development Manager hereby waives all rights and claims to any such fees, or any portion thereof, other than Delinquent Fee Payments, provided that (a) the foregoing shall not limit any Development Fees previously paid to Development Manager
(subject to Section 9.7), and (b) subject to Section 9.7, Development Manager shall be entitled to retain all Development Fees previously paid to Development Manager, except to the extent that the reason for termination of this Agreement under
Section 10.1 caused Development Manager to receive such Development Fees that Development Manager was not entitled to receive. Termination of this Agreement by Owner under Section 10.1 shall not waive any of Owner’s rights or remedies for any
default by Development Manager prior to such termination, and any Development Incentive Fee shall be subject to Sections 9.7. 
  

 47 

 10.6.2 In the event that Owner terminates this Agreement under Section 10.2, (a)
Development Manager shall not be entitled to receive any portion of the Development Incentive Fee or the or the Cost Saving Incentive Fee other than Delinquent Fee Payments, and Development Manager hereby waives all rights and claims to any such
fees, or any portion thereof, other than Delinquent Fee Payments (except as provided in clause (b) below), (b) Owner shall be obligated to pay, in accordance with the time frames in Article IX, and Development Manager shall be entitled to receive,
the Earn-Out Development Fees, the West Bluffs Incentive Fee, the Closing Incentive Fee and the “Termination Fee” (as hereinafter defined), and (c) if Owner shall not have entered into a West Bluffs Sale Agreement prior to such
termination, Development Manager shall not be entitled to receive any portion of the West Bluffs Incentive Fee, and Development Manager hereby waives all rights and claims to any such fees, or any portion thereof. Termination of this Agreement by
Owner under Section 10.2 will not waive any of Owner’s rights or remedies for any default by Development Manager prior to such termination. 
  
 10.6.3 If, but only if, the basis for termination of this Agreement under this Article X is Section 10.3 above and provided there exists
no uncured Development Manager Default, Owner shall be obligated to pay, in accordance with the time frames in Article IX, and Development Manager shall continue to be entitled to receive, the Development Incentive Fee, the Earn-Out Development
Fees, the Closing Incentive Fee, the West Bluffs Incentive Fee, Cost-Saving Incentive Fee and the Termination Fee in accordance with Sections 9.2, 9.3, 9.4, 9.5 and 9.6 of this Agreement (subject to Sections 9.7, 9.8, 9.9 and 9.10 hereof).
Termination of this Agreement by Owner under Section 10.3 shall not waive any of Owner’s rights or remedies for any default by Development Manager prior to such termination. 
  
 Notwithstanding anything to the contrary contained herein, if this Agreement is terminated pursuant to Section 10.2 or 10.3
above, then in lieu of any further payments of the Base Development Fee, Development Manager shall be entitled to receive the an amount (the “Termination Fee”) equal to the lesser of (a) the sum of Three Million Seven Hundred
Thousand Dollars ($3,700,000), or (b) the excess of $37,000,000 over the sum of all prior payments of the Base Development Fee theretofore received by Development Manager. 
  
 Notwithstanding anything to the contrary contained herein, if this Agreement is terminated pursuant to Section 10.1 or 10.3
above, then for a period of twelve (12) months following the date of such termination, the Owners shall not attempt to employ any of Development Manager’s personnel employed in connection with the Projects so long as such personnel remain
employed by Development Manager or its Affiliates. 
  
 10.7
Termination by Development Manager. From and after the Limited Termination Period Date, Development Manager shall have the right to terminate this Agreement without cause upon thirty (30) days’ written notice to Owner. Development
Manager may not exercise its rights under this Section 10.7 until after the Limited Termination Period Date. In the event of a termination of this Agreement pursuant to this Section 10.7, (a) Development Manager shall not be entitled to receive any
portion of the Base Development Fee, the Development Incentive Fee, the West Bluffs Incentive Fee or the Cost Saving Incentive Fee other than Delinquent Fee Payments; and Development Manager hereby waives all rights and claims to any such fees, or
any portion thereof, other than Delinquent Fee Payments, provided that (i) the foregoing shall not limit any Development Fees previously paid to Development Manager (subject to Section 9.7), and (ii) subject 

  

 48 

 
to Section 9.7, Development Manager shall be entitled to retain all Development Fees previously paid to Development Manager, (b) Development Manager shall
continue to be entitled to receive the Earn-Out Development Fees and the Closing Incentive Fee in accordance with Sections 9.3 and 9.5 of this Agreement (subject to Sections 9.9 of this Agreement), (c) termination of this Agreement by Owner under
Section 10.7 shall not waive any of Owner’s rights or remedies for any default by Development Manager prior to such termination, (d) any Development Incentive Fee shall be subject to Sections 9.7, and (e) Owners shall have the right to attempt
to employ and to employ any of Development Manager’s personnel employed in connection with the Projects (i.e., the restrictions in the last grammatical paragraph of Section 10.6 shall not apply). 
  
 10.8 Action Upon Termination. Upon the termination (whether by
expiration of time or otherwise) of this Agreement as to a particular Project, Development Manager shall (without cost to Owner) promptly (a) surrender and deliver to Owner any space (except for the Development Manager Offices) in such particular
Property occupied by Development Manager broom clean and free of debris and Development Manager’s personal property, (b) deliver to Owner or to the Owner’s designee any funds of Owner held by Development Manager (with respect to such
Project), (c) deliver to Owner all Project Agreements, books, correspondence and other records, data, reports (including any of the foregoing stored on computers or diskettes), Drawings and Specifications, Permits, receipts for deposits, unpaid
bills, canceled checks, bank statements, paid bills and all other records, papers, documents and keys which relate to such Project which are in Development Manager’s possession or control, and (d) furnish all such information and take all such
action as Owner shall reasonably require (including cooperating with a new Development Manager for such time as may be required by Owner) to effectuate an orderly and systematic transfer of Development Manager’s duties and obligations under
this Agreement (with respect to such Project) to a new person designated by Owner. Development Manager shall deliver to Owner a final accounting (prepared in accordance with the terms of this Agreement) of such Project up to and including the
effective date of the termination within fifteen (15) days after such effective date of termination. 
  
 10.9 ARBITRATION OF DISPUTES. ANY ARBITRATION PURSUANT TO THIS SECTION SHALL, TO THE FULLEST EXTENT PERMITTED BY LAW, BE HELD IN SAN FRANCISCO,
CALIFORNIA. IF THE PARTIES DO NOT MUTUALLY AGREE UPON AN ARBITRATOR WITHIN FIVE (5) BUSINESS DAYS AFTER NOTICE FROM ONE PARTY TO THE OTHER, THEN ANY PARTY MAY APPLY TO A COURT IN SAN FRANCISCO, CALIFORNIA FOR AN ORDER APPOINTING AN ARBITRATOR. IN
CONNECTION WITH ANY SUCH APPLICATION, ANY PARTY MAY PROPOSE ONE OR MORE PERSONS TO ACT AS THE ARBITRATOR PROVIDED THAT ANY SUCH PERSON OR PERSONS SHALL BE INDEPENDENT AND SHALL BE (X) A LICENSED ATTORNEY WITH AT LEAST TEN (10) YEARS’ EXPERIENCE
IN CONNECTION WITH THE DEVELOPMENT AND OPERATION OF REAL ESTATE SIMILAR TO THE PROPERTY OR (Y) A RETIRED JUDGE OF ANY SUPERIOR COURT, APPELLATE COURT OR UNITED STATES DISTRICT COURT IN SAN FRANCISCO, CALIFORNIA. AFTER THE APPOINTMENT OF THE
ARBITRATOR, THE PARTIES SHALL HAVE THE RIGHT TO TAKE DEPOSITIONS AND TO OBTAIN DISCOVERY BY OTHER MEANS REGARDING THE SUBJECT MATTER OF THE ARBITRATION AS IF THE MATTER WERE PENDING IN ANY SUPERIOR COURT IN SAN FRANCISCO, CALIFORNIA. ALTHOUGH THE
ARBITRATOR MAY, FOR GOOD CAUSE SHOWN, LIMIT THE NATURE AND EXTENT OF SUCH DISCOVERY AND ESTABLISH OR MODIFY THE SCHEDULE RELATING TO ANY DISCOVERY REQUESTS OR 

  

 49 

 
APPLICATIONS RELATING THERETO. THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ALL OTHER PROCEDURAL ISSUES, INCLUDING THE FOLLOWING: THE DATE, TIME AND PLACE
OF ANY HEARING; THE FORM, TIMING, AND SUBJECT MATTER OF ANY PRE-HEARING DOCUMENTS TO BE SUBMITTED BY THE PARTIES; AND ANY EVIDENTIARY OR PROCEDURAL ISSUES THAT MAY ARISE AT OR IN CONNECTION WITH ANY ARBITRATION HEARING. THE AWARD OF THE ARBITRATOR
SHALL BE CONCLUSIVE AND BINDING, AND ANY PARTY MAY SEEK TO HAVE THE AWARD CONFIRMED BY WAY OF A COURT ORDER. ALL FEES AND EXPENSES OF THE ARBITRATORS AND ALL OTHER EXPENSES OF THE ARBITRATION (EXCEPT FOR LEGAL FEES AND EXPENSES OF COUNSEL AND
WITNESS FEES TO THE PARTIES) SHALL BE BORNE INITIALLY BY THE PARTIES EQUALLY (I.E., 50% FOR EACH PARTY), BUT ULTIMATELY SHALL BE BORNE BY THE NON-PREVAILING PARTY IN THE ARBITRATION. LEGAL FEES AND EXPENSES AND WITNESS FEES OF EACH PARTY INITIALLY
SHALL BE BORNE BY SUCH PARTY; PROVIDED, HOWEVER, ALL SUCH LEGAL FEES AND EXPENSES ULTIMATELY SHALL BE BORNE BY THE NON-PREVAILING PARTY IN THE ARBITRATION. THE ARBITRATION SHALL BE LIMITED TO THE EFFECTIVENESS OR INEFFECTIVENESS OF A TERMINATION
NOTICE (INCLUDING DETERMINING WHETHER ONE OF THE EVENTS UNDER SECTION 10.1, 10.2 OR 10.3 HAS OCCURRED). NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS TO PREVENT ANY PARTY FROM SEEKING PROVISIONAL OR EQUITABLE RELIEF FROM A COURT ON THE BASIS THAT,
UNLESS SUCH RELIEF IS OBTAINED, ANY AWARD THAT THE ARBITRATOR MAY MAKE WILL BE INEFFECTUAL. 
  

 50 

  
 ASSENT TO ARBITRATION
PROVISION 
  
 NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE
AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION DECIDED BY NEUTRAL ARBITRATION AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY
TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION. YOUR AGREEMENT TO THIS ARBITRATION PROVISION
IS VOLUNTARY. 
  
 WE HAVE READ AND UNDERSTAND THE FOREGOING AND
AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION TO NEUTRAL ARBITRATION. 
  

					
			
	  	 	 	 	  
	 FOCIL Holdings on behalf
	 	 	 	 Development Manager

	 of all “Owners”
	 	 	 	 

  
 [remainder of this page intentionally left blank] 
  

 51 

  
 ARTICLE XI 

NO RESPONSIBILITY OF DEVELOPMENT MANAGER 
  
 11.1 Notwithstanding any provision of this Agreement or any other Collateral Agreement to the contrary in performing any duty or obligation under this
Agreement, including Section 4.2.12, (a) Development Manager shall not be responsible for the acts and omissions of any Contractor, any Architect, any Engineer or any other independent contractors employed by or on behalf of Owner, and their
respective subcontractors, employees and agents in connection with the development of a Project except as provided below; and (b) without limiting the generality of the foregoing, Development Manager shall not be responsible or liable for the
architectural or engineering design or quality, or the construction means, methods, techniques, sequences or procedures employed by contractors in the performance of their contracts for Owner and shall have no liability for any damages or losses
sustained by Owner as a result thereof, so long as (1) any breach by Development Manager under this Agreement with respect to the foregoing does not constitute gross negligence, willful misconduct or fraud, and (2) Development Manager has no actual
knowledge of such problem or if Development Manager does have such actual knowledge, Development Manager shall have not have failed to notify Owner in writing of such problem within ten (10) Business Days of learning about the same. Notwithstanding
the foregoing, but subject to the “Development Manager’s Liability Cap” (as such term is defined in Section 12.1), nothing in this Section 11.1 shall limit Development Manager’s obligations and liabilities pursuant to Sections
8.1 and 12.18 of this Agreement. 
  
 ARTICLE XII 

MISCELLANEOUS 
  
 12.1 Successors and Assigns; Assignment. Notwithstanding Section 12.13(c), but subject to the provisions herein concerning assignment (including
the last two sentences of this Section), this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns, including Affiliates of each Owner which own the Wholly-Owned Assets or the
Venture Interest. Neither this Agreement nor any rights hereunder shall be assigned, hypothecated or otherwise transferred, directly or indirectly (whether voluntarily, involuntarily, by operation of law or otherwise), by Development Manager or
Owner without the prior approval in each instance of the other. Any purported transfer by Development Manager or Owner made without first complying with this Section 12.1 will be void and of no effect. 
  
 12.2 Confidentiality; Press Release. Each of Development Manager and
Owner agrees that it shall not, without the prior written consent of the other party, disclose the terms of the transaction contemplated in this Agreement (including, without limitation, through a press release); provided, however,
nothing in this Section 12.2 shall be deemed to prohibit a party from making any disclosure (a) which such party deems necessary in order to fulfill such party’s disclosure obligations imposed by law, legal process or the rules of any national
securities exchange or automated quotation system, so long as such party consults with the other party prior to such disclosure and considers in good faith the other party’s considerations with respect to such disclosure, (b) to the extent
required to enforce its rights under this Agreement or the documents executed in connection with this Agreement, and (c) to title companies, surveyors, attorneys, accountants, representatives, 

  

 52 

 
consultants, agents and actual and prospective lenders and investors provided such party informs each such person or entity of its obligation (and instructs
such person or entity) to maintain such confidentiality. The foregoing confidentiality restriction shall not apply to any information or data that is available to such party from any other source (other than by reason of a breach by such party of
the foregoing confidentiality restriction). Any press release issues with respect to the transactions contemplated by this Agreement shall be subject to the prior written approval of Development Manager and Owner. Without limitation on this Section
12.2, no public announcement shall be made (even if required by law) by a party that identifies the other by name without consulting with the other party and making such changes as the other party may reasonably request to the extent permissible
within the legal constraints to which the disclosing party is subject. 
  
 12.3 Notices. Any notice which a party is required or may desire to give the other shall be in writing and may be sent by (i) personal delivery, (ii) by mail (either [x] by United States registered or certified mail, return receipt
requested, postage prepaid, or [y] by Federal Express or similar generally recognized overnight carrier regularly providing proof of delivery), or (ii) by facsimile, provided that such telecopy shall be immediately followed by delivery of such
notice pursuant to clause (i) or (ii) above, and addressed as follows (subject to the right of a party to designate a different address for itself by notice similarly given): 
  

			
	 Development Manager:

	
	 Catellus Urban Construction, Inc.

	 Catellus Commercial Development Corporation

	 c/o Catellus Development Corporation

	 201 Mission Street, 2nd Floor

	 San Francisco, California 94105

	 Attention:
	  	 General Counsel

	 Telecopier:
	  	 (415) 974-4651

	 Telephone:
	  	 (415) 974-4500

	
	 with a copy to:

	
	 Allen Matkins Leck Gamble & Mallory LLP

	 1900 Main Street, 5th Floor

	 Irvine, California 92614

	 Attention:
	  	 Gary S. McKitterick, Esq.

	 Telecopier:
	  	 (949) 553-8354

	 Telephone:
	  	 (949) 553-1313

  

 53 

			
	 Owners:
	  	 
	
	 c/o Farallon Capital Management, L.L.C.

	 One Maritime Plaza, Suite 1325

	 San Francisco, CA 94111

	 Attention:
	  	 Richard B. Fried

	 	  	 Seth Hamalian

	 Fax No.:
	  	 (415) 421-2133

	 Phone No.:
	  	 (415) 421-2151

	
	 with a copy to:

	
	 Pircher, Nichols & Meeks

	 1925 Century Park East, Suite 1700

	 Los Angeles, CA 90067

	 Attention:
	  	 Real Estate Notices (SAC/MES/EBS/903297-1)

	 Fax No.:
	  	 (310) 201-8900

	 Phone No.:
	  	 (310) 201-8922

  
 Any notice so given by mail shall be
deemed to have been given as of the date of actual delivery (whether accepted or refused) established by U.S. Post Office return receipt or the overnight carrier’s proof of delivery, as the case may be, or confirmed answerback if by facsimile
(provided that if any notice or other communication to be delivered by facsimile cannot be transmitted because of a problem affecting the receiving party’s facsimile machine, the deadline for receiving such notice or other communication shall
be extended through the next Business Day), as the case may be, provided, however, that if such actual delivery occurs on a non-Business Day, then such notice or demand so made shall be deemed effective on the first business day after the day of
actual delivery. Any such notice not so given (including notices by facsimile) shall be deemed given upon receipt of the same by the party to whom the same is to be given. No communications via electronic mail shall be effective except for a PDF of
a physically signed notice attached to an email. 
  
 12.4
Entire Agreement; Amendments. This Agreement contains the entire agreement between the parties respecting the matters herein set forth and supersedes all prior agreements, communications and negotiations (whether written or oral) between the
parties hereto respecting such matters, including (i) the Access and Indemnity Agreement, dated as of September 22, 2004, by and among CLDC and Farallon Capital Management, L.L.C., a Delaware limited liability company (“FCML”), and
(ii) that certain Letter of Intent, dated September 3, 2004 by and between FCML and CLDC. The Exhibits are hereby incorporated into this Agreement. There are no further agreements or understandings, written or oral, in effect between the Parties
with respect to the subject matter hereof. All amendments of, or modifications to, the Agreement shall not be effective unless in writing signed by the Parties. 
  

12.5 No Waiver. No waiver by either Party of any of the terms or provisions of this Agreement shall be enforceable unless expressly set forth in
writing and signed by the Party against whom enforcement is sought. Without limitation on the foregoing: (1) no waiver by a Party of any breach of this Agreement by the other Party shall be deemed to be a waiver of any other breach by such other
Party (whether preceding or succeeding and whether or not of the same or similar nature); 

  

 54 

 
(2) no payment or acceptance of performance by a Party after any breach by the other Party shall be deemed to be a waiver of any breach of this Agreement by
such other Party, whether or not the first party knows of such breach at the time it makes such payment or accepts such performance; and (3) no failure or delay by a Party to exercise any right it may have by reason of the default of the other Party
shall operate as a waiver of default or modification of this Agreement or shall prevent the exercise of any right by the first Party while the other Party continues to be so in default. 
  
 12.6 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance shall
be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to any other Person or circumstance shall not be affected thereby and shall be enforced to the greatest extent permitted by Law.

  
 12.7 Counterpart Execution. This Agreement may be
executed in separate counterparts. It shall be deemed fully executed when each Party has signed at least one counterpart, even though no single counterpart contains the signature of all the Parties. 
  
 12.8 Interpretation. All personal pronouns used in this Agreement,
whether used in the masculine, feminine or neuter gender, shall include all other genders; the singular shall include the plural; and the plural shall include the singular. Titles of articles, sections, subsections and paragraphs in this Agreement
are for convenience only and neither limit nor amplify the provisions of this Agreement. All references in this Agreement to Exhibits, articles, sections, subsections or paragraphs shall refer to Exhibits, articles, sections, subsections and
paragraphs of this Agreement, unless specific reference is made to the Exhibits, articles, sections or other subdivisions of another document or instrument. This Agreement shall not be interpreted in favor of either Party by virtue of such Party not
having prepared this Agreement. The words “herein”, “hereof”, “hereunder”, “hereby”, “this Agreement” and other similar references shall be construed to mean and include this Agreement and all
amendments and supplements hereto unless the context shall clearly indicate or require otherwise. The words “include”, “includes” and “including” shall be deemed to be followed by the words “, without
limitation”. As used herein, “good faith” has the meaning set forth for the same in Section 1201(19) of the Uniform Commercial Code, as adopted in the State in which the Property is located. 
  
 12.9 Governing Law. This Agreement shall be governed by the laws of
the State of California. 
  
 12.10 Business Days; Time is of
the Essence. If any time period provided for in this Agreement ends on a day other than a Business Day, the time period shall be extended to the next Business Day. Otherwise, time is of the essence of this Agreement. 
  
 12.11 Attorneys’ Fees. In the event suit or action is instituted
to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover from the other party such sum as the court may adjudge reasonable as attorneys’, paralegals’ and witness’ fees and costs and court
costs, including the reasonable value of in-house legal services, whether at trial or on appeal of such suit or action or in connection with any petition for review or any action for rescission or in connection with any action or proceeding under
the Federal Bankruptcy Code, in addition to all other sums provided by law, and such prevailing party shall also be entitled to recover reasonable 

  

 55 

 
non-litigation attorneys’ fees incurred in enforcing the terms of this Agreement prior to or separate from the trial or appeal or other action.

  
 12.12 Consents and Approvals; Decisions of Owner;
Designated Representatives of Owner and Development Manager. 
  
 12.12.1 Except as otherwise expressly provided herein, any approval or consent provided to be given by a party hereunder may be given or withheld in the sole, absolute and non-reviewable discretion of such party and
shall not be deemed to have been given unless given expressly in writing. Any approval or consent provided to be given by one or more of the Owners under this Agreement may be given by FOCIL Holdings alone as sole member. 
  
 12.12.2 The decisions of each Owner in connection with the
Project shall be made through, and communicated to Development Manager by, authorized representatives of Owner, designated in writing by FCML, as the manager of Owners. Development Manager shall be entitled to rely conclusively on written
instructions received from such authorized representatives of Owners or from such substitute as identified by Owners in a written notice to Development Manager as to any and all acts performed under this Agreement by Development Manager or any
members of its organization. Owners hereby initially designate Richard Fried and Seth Hamalian as its authorized representatives for each Project, each of which individually have the authority to act as described above. 
  
 12.12.3 The decisions of Development Manager in connection
with the Project shall be made through, and communicated to Owner by, authorized representatives of Development Manager. Owner shall be entitled to rely conclusively on written instructions received from such authorized representatives of
Development Manager or from such substitute as identified by Development Manager in a written notice to Owner as to any and all acts performed under this Agreement by Owner or any members of its organization. Development Manager hereby initially
designates Ted Antenucci, Tom Marshall and Michael Wenzell as its authorized representatives for each Project, each of which individually have the authority to act as described above. 
  
 12.13 Third Parties. Except as expressly set forth in this Agreement, this Agreement shall not (a) confer any rights
or remedies on any person other than the Parties and their respective successors and permitted assigns; (b) relieve or discharge the obligation or liability of any third persons to any party to this Agreement; or (c) otherwise create any third party
beneficiary rights. 
  
 12.14 No Recordation. In no event
shall this Agreement or any document or other memorandum related to the subject matter of this Agreement be recorded. 
  
 12.15 Effectiveness. In no event shall any draft of this Agreement create any obligation or liability, it being understood that this Agreement
shall be effective and binding only when a counterpart hereof has been executed and delivered by each Party. 
  
 12.16 Cooperation of Each Owner and Development Manager. Upon request by Development Manager or Owner, the other Party shall use Commercially
Reasonable Efforts to furnish Development Manager or Owner, as the case may be, with information and documents reasonably available to each Owner or Development Manager, as the case be, and reasonably required by Development Manager or Owner in
connection with this Agreement. 
  

 56 

 12.17 No Restrictions. Except as may be otherwise agreed to herein, nothing contained in this
Agreement shall be construed so as to prohibit Development Manager or each Owner, or any of their Affiliates, from owning, operating, developing, managing or investing in any other real estate development wherever located. Except as may otherwise be
agreed to by the parties hereto, each party agrees that the other may engage in, or possess an interest in, another business venture or ventures of any nature or description, independently or with others, including the ownership, financing, leasing,
operating, management, syndication, brokerage and development of real property, and neither shall have any right by virtue of this Agreement in and to such other ventures or to the income or profits derived therefrom. Notwithstanding anything to the
contrary contained in this Section 12.17, Owner’s consent shall be required for Development Manager or any of Development Manager’s Affiliates to own, operate, develop, manage, invest in or form a venture with respect to all or any portion
of a Project and any parcel within the Mission Bay Redevelopment Area, provided that such consent shall not be required in connection with the Alameda (Commercial) Assets (subject to Owner’s right of first refusal set forth in Section 1.2 of
the Purchase Agreement) or with respect to the “Mission Bay Retained Property” (as defined in the Purchase Agreement). 
  
 12.18 Limitation on Liability. 
  
 12.18.1 
  
 (a) A Party’s liability for any claims made after the date hereof under this Agreement shall be subject to the following limitations:
no Party shall have liability until the aggregate amount of all losses claimed by the other Party exceeds $100,000, provided that if such threshold is exceeded, such Party shall be liable for all such losses starting from the first dollar of such
losses (without giving effect to such threshold). 
  

 57 

 (b) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE MAXIMUM LIABILITY OF DEVELOPMENT
MANAGER UNDER THIS AGREEMENT OF ALL LOSSES CLAIMED BY OWNER AND ITS AFFILIATES FOR ANY REASON SHALL NOT EXCEED $10,000,000 ON AN AGGREGATE CUMULATIVE BASIS FOR ALL LOSSES (“DEVELOPMENT MANAGER’S LIABILITY CAP”), PROVIDED THAT
SUCH LIMITATION SHALL NOT APPLY TO, AND OWNER MAY RECOVER WITHOUT REGARD TO SUCH LIMIT THE FOLLOWING (THE “CAP ECLUSIONS”, WITH THE UNDERSTANDING THAT NO PAYMENT OR OFFSET OF A CAP EXCLUSION SHALL COUNT AGAINST, BE APPLIED TO OR
OTHERWISE REDUCE THE DEVELOPMENT MANAGER’S LIABILITY CAP): (1) CLAIMS FOR ATTORNEYS’ FEES, COSTS OF COLLECTION, WITNESS FEES AND COURT COSTS, AND INTEREST ON JUDGMENTS, (2) ANY CLAIM BY OWNER FOR THE WB AFFORDABLE HOUSING PAYMENT UNDER
EXHIBIT “L” OF THIS AGREEMENT, AND (3) ANY OFFSET RIGHTS OF OWNER UNDER SECTION 9.7 OR 9.10. OTHER THAN DIRECT DAMAGES PROXIMATELY CAUSED BY THE OTHER PARTY’S BREACH OF THIS AGREEMENT, NEITHER OWNER NOR DEVELOPMENT MANAGER (NOR ANY OF
THEIR RESPECTIVE AFFILIATES) SHALL MAKE A CLAIM UNDER THIS AGREEMENT AGAINST THE OTHER PARTY FOR DAMAGES, PROVIDED THAT THE FOREGOING SHALL NOT LIMIT THE RIGHT OF EITHER PARTY TO BE INDEMNIFIED UNDER THIS AGREEMENT FOR ANY CLAIM BY A THIRD PARTY FOR
DAMAGES REGARDLESS OF THE NATURE OF SUCH DAMAGES. . 
  

					
			
	  	 	 	 	  
	 FOCIL Holdings on behalf
	 	 	 	 Development Manager

	 of all “Owners”
	 	 	 	 

  

 58 

 12.18.2 Without limitation on the Joinder attached to this Agreement or the Purchase
Agreement, no present or future direct or indirect partner, member, manager, director, officer, shareholder, employee, advisor, agent of Development Manager or Owner, shall have any personal liability, directly or indirectly, under or in connection
with this Agreement or any agreement made or entered into under or in connection with the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and each of
Development Manager and Owner, on its behalf and on behalf of its respective successors and assigns, shall look solely to Development Manager or Owner, respectively, for the payment of any claim or for any performance, and Development Manager and
Owner hereby waive any and all such personal liability. For purposes of this Section 12.18.2, no negative capital account or any contribution or payment obligation of any partner or member in Development Manager or any Owner shall constitute an
asset of Development Manager or Owner, respectively. 
  
 12.19
Purchase Agreement; Catellus Financing. Notwithstanding anything to the contrary contained in this Agreement, nothing in this Agreement, including Section 8.1, shall relieve Development Manager, Owner or their Affiliates of the obligations of
such Party or their Affiliates under the Purchase Agreement or the documents relating to the Catellus Financing. 
  
 12.20 No Limitation or Expansion on Development Manager’s Obligations. Notwithstanding anything to the contrary, Development Manager’s
obligations expressly set forth in this Agreement are not limited or expanded by anything contained in the (a) Catellus Financing Documents and any other documents entered into among Owners and CF Capital or CFC in connection thereto, and (b)
Purchase and Sale Agreement and any other documents entered into among FOCIL Holdings and the Sellers. 
  

 59 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth
above. 
  

					
	OWNER:
	
	 FOCIL HOLDINGS, LLC,

	 a Delaware limited liability company

		
	By:	 	 Farallon Capital Management, L.L.C.,
 a Delaware limited liability company,
 its Manager

			
	 	 	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 FOCIL-MB, LLC,

	 a Delaware limited liability company

		
	By:	 	 Farallon Capital Management, L.L.C.,

	 	 	 a Delaware limited liability company,

	 	 	 its Manager

			
	 	 	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 FOCIL-BP, LLC,

	 a Delaware limited liability company

		
	By:	 	 Farallon Capital Management, L.L.C.,

	 	 	 a Delaware limited liability company,

	 	 	 its Manager

			
	 	 	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 DMA Signature Page 1 

					
	
	 FOCIL-WB, LLC,

	 a Delaware limited liability company

		
	By:	 	 Farallon Capital Management, L.L.C.,

	 	 	 a Delaware limited liability company,

	 	 	 its Manager

			
	 	 	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 FOCIL-SFD, LLC,

	 a Delaware limited liability company

		
	By:	 	 Farallon Capital Management, L.L.C.,

	 	 	 a Delaware limited liability company,

	 	 	 its Manager

			
	 	 	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	DEVELOPMENT MANAGER:
	
	 CATELLUS URBAN CONSTRUCTION, INC.,

	 a Delaware corporation

		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 DMA Signature Page 2 

					
	
	 CATELLUS COMMERCIAL DEVELOPMENT

	 CORPORATION, a Delaware corporation

		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 DMA Signature Page 3 

  
 JOINDER

  
 In consideration of the execution of that certain
Development Agreement of November 22, 2004, by and among FOCIL HOLDINGS, LLC, a Delaware limited liability company, FOCIL-MB, LLC, a Delaware limited liability company, FOCIL-BP, LLC, a Delaware limited liability company, FOCIL-WB, LLC, a Delaware
limited liability company, and FOCIL-SFD, LLC, a Delaware limited liability company (individually, an “Owner”, and collectively, the “Owners”), and CATELLUS URBAN CONSTRUCTION, INC., a Delaware corporation
(“CUCI”), and CATELLUS COMMERCIAL DEVELOPMENT CORPORATION, a Delaware corporation (“CCDC”) (CUCI and CCDC are hereinafter referred to, collectively, as “Development Manager”), of which this Joinder
forms a part (the “Development Agreement”), the undersigned, CATELLUS OPERATING LIMITED PARTNERSHIP, a Delaware limited partnership (“Guarantor”), hereby unconditionally and irrevocably guarantees each and every
obligation of Development Manager under the Development Agreement (collectively, the “Obligations”). Capitalized terms used in this Joinder and not otherwise defined herein shall have the same meanings as set forth in the
Development Agreement. Guarantor represents and acknowledges that Guarantor owns a majority interest in, and controls Development Manager, that Guarantor will derive substantial benefits from the entry by Development Manager and Owners into the
Development Agreement and the transactions contemplated thereby, and that Guarantor’s execution of this Joinder is a material inducement and condition to Owners’ execution of the Development Agreement. 
  
 Guarantor unconditionally waives any guarantor or suretyship defenses which
might otherwise be available to Guarantor. The obligations of Guarantor under this Joinder are independent of the obligations of Development Manager under the Development Agreement and, in the event of any default hereunder, a separate action or
actions may be brought and prosecuted against Guarantor whether or not Guarantor is the alter ego of Development Manager and whether or not Development Manager is joined therein or a separate action or actions are brought against Development
Manager. The obligations of Guarantor hereunder shall remain in full force and effect without regard to, and shall not be affected or impaired by, the following, any of which may be taken without the consent of, or notice to, Guarantor, nor shall
any of the following give Guarantor any recourse or right of action against any Owners: (a) any express or implied amendment, modification, renewal, addition, supplement, extension of the Obligations or the Development Agreement; (b) any exercise or
non-exercise by Owners or any Owner of any right or remedy under the Development Agreement or this Joinder or available at law or in equity; (c) any Bankruptcy/Dissolution Event relating to Guarantor, Development Manager or any Affiliate of
Development Manager, or by any court, in any such proceeding, whether or not Guarantor shall have had notice or knowledge of any of the foregoing; (d) any release or discharge of Development Manager from its liability under the Obligations or any
release or discharge of any other party at any time directly or contingently liable for the Obligations; (e) any subordination, compromise, release (by operation of law or otherwise), discharge, compound, collection, or liquidation of any or all of
the property owned by Owners, or any substitution with respect thereto; and (f) any acceptance of partial performance of the Obligations. 
  
 Guarantor agrees to pay all costs and expenses, including reasonable attorneys’ fees, which may be incurred by any Owner in any effort to collect or
enforce any of the Obligations, whether or not any lawsuit is filed, including all costs and attorneys’ fees incurred by any Owner in any bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy 

  

 DMA Joinder Page 1 

 
proceeding). Such amounts shall bear interest until paid at 10% per annum. Guarantor shall not have the right to assign any of its rights or obligations
under this Joinder. 
  
 The following Section of the Development
Agreement shall apply to this Joinder as though herein set forth in full, mutatis mutandis (and, without limitation on the foregoing, references to “Development Manager” and “this Agreement” therein shall be deemed changed for
this purpose to “the parties”, “Guarantor” and “this Joinder”, respectively): 12.1 (with any notice to Guarantor to be sent to the address set forth for Development Manager in the Development Agreement) through
12.16. 
  
 COLP’s liability under this Joinder shall
be limited to $10,000,000 in the aggregate for all claims made by Owner (and any Affiliate of Owner, or any other party, claiming by, through or under Owner) under any agreement or for any other reason. 
  
 IN WITNESS WHEREOF, the undersigned has executed this Joinder as of the date
of the Development Agreement. 
  

							
	 CATELLUS OPERATING LIMITED PARTNERSHIP,

	 a Delaware limited partnership

		
	By:	 	 CATELLUS COMMERCIAL DEVELOPMENT

	 	 	 CORPORATION, a Delaware corporation, its Agent

			
	 	 	 By:
	 	 
	 	 	 	 	 Print name:
	 	 
	 	 	 	 	 Title:
	 	 

  

 DMA Joinder Page 2 

  
 EXHIBITS

  

					
	A-1	 	-	  	Development Plan (Mission Bay)
			
	A-2	 	-	  	Development Plan (Alameda [Bayport])
			
	A-3	 	-	  	Development Plan (West Bluffs)
			
	A-4	 	-	  	Development Plan (Santa Fe Depot)
			
	B-1	 	-	  	Project Budget (Mission Bay)
			
	B-2	 	-	  	Project Budget (Alameda [Bayport])
			
	B-3	 	-	  	Project Budget (West Bluffs)
			
	B-4	 	-	  	Project Budget (Santa Fe Depot)
			
	C-1	 	-	  	Project Schedule (Mission Bay)
			
	C-2	 	-	  	Project Schedule (Alameda [Bayport])
			
	C-3	 	-	  	Project Schedule (West Bluffs)
			
	C-4	 	-	  	Project Schedule (Santa Fe Depot)
			
	D	 	-	  	Form of Request for Qualifications
			
	E	 	-	  	Special Tasks (Mission Bay)
			
	F	 	-	  	Funding Request Deliveries
			
	G	 	-	  	Contractor’s Insurance Requirements
			
	H	 	-	  	Owner’s Insurance
			
	I-1	 	-	  	Property Specific Reports (Mission Bay)
			
	I-2	 	-	  	Property Specific Reports (Alameda [Bayport])
			
	I-3	 	-	  	Property Specific Reports (West Bluffs)
			
	I-4	 	-	  	Property Specific Reports (Santa Fe Depot)
			
	J	 	-	  	Schedule of Base Development Fee
			
	K	 	-	  	Certain IRR Deficiency Calculations
			
	L	 	-	  	Earn-Out Development Fees
			
	M	 	-	  	Closing Incentive Fee

  

 1 

  
 SCHEDULES

  

					
	4.1.1	 	-	  	Services and Responsibilities Allocated to Employees and Personnel of Development Manager and its Affiliates
			
	4.2.8	 	-	  	Contractors

  

 2 

 EXHIBIT “B-1” 
  
 PROJECT BUDGET (MISSION BAY) 
  

  
 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018 
  

																																											
	 	  	 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

	 	  	Total

	  	Nov-04

	  	Dec-04

	  	Jan-05

	  	Feb-05

	  	Mar-05

	  	Apr-05

	  	May-05

	  	Jun-05

	  	Jul-05

	  	Aug-05

	  	Sep-05

	  	Oct-05

	  	Nov-05

	  	Dec-05

	  	Jan-06

	  	Feb-06

	  	Mar-06

	  	Apr-06

	  	May-06

	  	Jun-06

	 Source of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Revenue:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Sales
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Santa Fe Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Gross land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits applied toward closings
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits received from buyers
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Closing costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Additional Closing Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Infrastructure intrerest carry
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay interim land NOI
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total sources of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Capital expenditures:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC (including CFD pymts)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SF Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Property taxes
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Earnout
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Management fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay CFD and G&A reimbursement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Holding Costs/Lease Buyout Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																						
	 Net sources and uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																						
	 Revenues - MB Bosa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Gross Land Revenues
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Back Out: ARE Earn-Out
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net Land Sales for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other MB Revenues for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total For Release
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Release Available
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Release % before & after Westbluffs 
  

  
 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018 
  

																																																					
	 	  	Jul-06

	  	Aug-06

	  	Sep-06

	  	Oct-06

	  	Nov-06

	  	Dec-06

	  	Jan-07

	  	Feb-07

	  	Mar-07

	  	Apr-07

	  	May-07

	  	Jun-07

	  	Jul-07

	  	Aug-07

	  	Sep-07

	  	Oct-07

	  	Nov-07

	  	Dec-07

	  	Jan-08

	  	Feb-08

	  	Mar-08

	  	Apr-08

	  	May-08

	  	Jun-08

	  	Jul-08

	  	Aug-08

	 Source of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Revenue:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Sales
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Santa Fe Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Gross land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits applied toward closings
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits received from buyers
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Closing costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Additional Closing Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Infrastructure intrerest carry
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay interim land NOI
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total sources of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Capital expenditures:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC (including CFD pymts)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SF Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Property taxes
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Earnout
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Management fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay CFD and G&A reimbursement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Holding Costs/Lease Buyout Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Total source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Net sources and uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Revenues - MB Bosa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Gross Land Revenues
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																											
	 Back Out: ARE Earn-Out
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net Land Sales for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other MB Revenues for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total For Release
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Release Available
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Release % before & after Westbluffs 
  

  
 CATELLUS DEVELOPMENT CORPORATION

 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018

  

																																																									
	 	  	Sep-08

	  	Oct-08

	  	Nov-08

	  	Dec-08

	  	Jan-09

	  	Feb-09

	  	Mar-09

	  	Apr-09

	  	May-09

	  	Jun-09

	  	Jul-09

	  	Aug-09

	  	Sep-09

	  	Oct-09

	  	Nov-07

	  	Dec-09

	  	Jan-10

	  	Feb-10

	  	Mar-10

	  	Apr-10

	  	May-10

	  	Jun-10

	  	Jul-10

	  	Aug-10

	  	Sep-10

	  	Oct-10

	  	Nov-10

	  	Dec-10

	 Source of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Revenue:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Sales
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Santa Fe Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Gross land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits applied toward closings
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits received from buyers
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Closing costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Additional Closing Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Infrastructure intrerest carry
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay interim land NOI
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total sources of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Capital expenditures:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC (including CFD pymts)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SF Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Property taxes
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Earnout
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Management fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay CFD and G&A reimbursement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Holding Costs/Lease Buyout Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Total source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Net sources and uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Revenues - MB Bosa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Gross Land Revenues
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 Back Out: ARE Earn-Out
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net Land Sales for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other MB Revenues for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total For Release
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Release Available
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Release% before & after Westbluffs 
  

  
 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018 
  

																																																											
	 	  	Jan-11

	  	Feb-11

	  	Mar-11

	  	Apr-11

	  	May-11

	  	Jun-11

	  	Jul-11

	  	Aug-11

	  	Sep-11

	  	Oct-11

	  	Nov-11

	  	Dec-11

	  	Jan-12

	  	Feb-12

	  	Mar-12

	  	Apr-12

	  	May-12

	  	Jun-12

	  	Jul-12

	  	Aug-12

	  	Sep-12

	  	Oct-12

	  	Nov-12

	  	Dec-12

	  	Jan-13

	  	Feb-13

	  	Mar-13

	  	Apr-13

	  	May-13

	 Source of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Revenue:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Sales
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Santa Fe Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Gross land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits applied toward closings
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits received from buyers
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Closing costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Additional Closing Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Infrastructure intrerest carry
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay interim land NOI
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total sources of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Capital expenditures:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC (including CFD pymts)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SF Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Property taxes
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Earnout
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Management fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay CFD and G&A reimbursement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Holding Costs/Lease Buyout Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Total source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Net sources and uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Revenues - MB Bosa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Gross Land Revenues
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																														
	 Back Out: ARE Earn-Out
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net Land Sales for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other MB Revenues for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total For Release
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Release Available
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Release % before & after Westbluffs 
  

  
 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018 
  

																																																							
	 	  	Jun-13

	  	Jul-13

	  	Aug-13

	  	Sep-13

	  	Oct-13

	  	Nov-13

	  	Dec-13

	  	Jan-14

	  	Feb-14

	  	Mar-14

	  	Apr-14

	  	May-14

	  	Jun-14

	  	Jul-14

	  	Aug-14

	  	Sep-14

	  	Oct-14

	  	Nov-14

	  	Dec-14

	  	Jan-15

	  	Feb-15

	  	Mar-15

	  	Apr-15

	  	May-15

	  	Jun-15

	  	Jul-15

	  	Aug-15

	 Source of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Revenue:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Sales
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Santa Fe Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Gross land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits applied toward closings
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Deposits received from buyers
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Closing costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Additional Closing Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net land sales revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Infrastructure intrerest carry
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay interim land NOI
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC bond proceeds & reimbursements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total sources of funds
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Capital expenditures:
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay NOC
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay SOC (including CFD pymts)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SF Depot
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Property taxes
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Earnout
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Management fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mission Bay CFD and G&A reimbursement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Holding Costs/Lease Buyout Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Total source of uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Net sources and uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Revenues - MB Bosa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Gross Land Revenues
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 Back Out: ARE Earn-Out
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Net Land Sales for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other MB Revenues for Release Payments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total For Release
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Release Available
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Release % before & after Westbluffs 
  

  
 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018 
  

																																							
	 	 	Sep-15

	 	Oct-15

	 	Nov-15

	 	Dec-15

	 	Jan-16

	 	Feb-16

	 	Mar-16

	 	Apr-16

	 	May-16

	 	Jun-16

	 	Jul-16

	 	Aug-16

	 	Sep-16

	 	Oct-16

	 	Nov-16

	 	Dec-16

	 	Jan-17

	 	Feb-18

	 	Mar-18

	 Source of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revenue:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Santa Fe Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Gross land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits applied toward closings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits received from buyers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Closing costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Additional Closing Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 Infrastructure intrerest carry
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay interim land NOI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total sources of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 Source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Capital expenditures:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC (including CFD pymts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 SF Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Property taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Earnout
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Management fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay CFD and G&A reimbursement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Holding Costs/Lease Buyout Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 Total source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 Net sources and uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 Revenues - MB Bosa
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Gross Land Revenues
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Back Out: ARE Earn-Out
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Land Sales for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Other MB Revenues for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total For Release
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Release Available
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  
 Release % before & after Westbluffs 
  

 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION

 Nov 2004 thru 2018 
  

																															
	 	 	Apr-17

	 	May-17

	 	Jun-17

	 	Jul-17

	 	Aug-17

	 	Sep-17

	 	Oct-17

	 	Nov-17

	 	Dec-17

	 	Jan-18

	 	Feb-18

	 	Mar-18

	 	Apr-18

	 	May-18

	 	Jun-18

	 Source of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revenue:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Santa Fe Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Gross land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits applied toward closings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits received from buyers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Closing costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Additional Closing Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Infrastructure intrerest carry
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay interim land NOI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total sources of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Capital expenditures:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC (including CFD pymts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 SF Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Property taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Earnout
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Management fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay CFD and G&A reimbursement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Holding Costs/Lease Buyout Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Total source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Net sources and uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Revenues - MB Bosa
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Gross Land Revenues
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																
	 Back Out: ARE Earn-Out
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Land Sales for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Other MB Revenues for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total For Release
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Release Available
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  
 Release % before & after Westbluffs 
  

 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION

 Nov 2004 thru 2018 
  

																											
	 	 	Jul-18

	 	Aug-18

	 	Sep-18

	 	Oct-18

	 	Nov-18

	 	Dec-18

	 	2004

	 	2005

	 	2006

	 	2007

	 	2008

	 	2009

	 	2010

	 Source of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revenue:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Santa Fe Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Gross land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits applied toward closings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits received from buyers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Closing costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Additional Closing Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Infrastructure intrerest carry
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay interim land NOI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total sources of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Capital expenditures:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC (including CFD pymts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 SF Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Property taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Earnout
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Management fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay CFD and G&A reimbursement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Holding Costs/Lease Buyout Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Total source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Net sources and uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Revenues - MB Bosa
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Gross Land Revenues
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
														
	 Back Out: ARE Earn-Out
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Land Sales for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Other MB Revenues for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total For Release
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Release Available
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  
 Release % before & after Westbluffs 
  

 75 

  
 FINAL 
  
 CATELLUS DEVELOPMENT CORPORATION 
 CUG CASH FLOW PROJECTION 
 Nov 2004 thru 2018 
  

																			
	 	 	2011

	 	2012

	 	2013

	 	2014

	 	2015

	 	2016

	 	2017

	 	2018

	 	Total

	 Source of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revenue:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Santa Fe Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Gross land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits applied toward closings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Deposits received from buyers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Closing costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Additional Closing Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net land sales revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Infrastructure intrerest carry
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay interim land NOI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC bond proceeds & reimbursements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total sources of funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Capital expenditures:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay NOC
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay SOC (including CFD pymts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 SF Depot
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Property taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Earnout
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Management fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Mission Bay CFD and G&A reimbursement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Land Holding Costs/Lease Buyout Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Total source of uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Net sources and uses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Revenues - MB Bosa
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Gross Land Revenues
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
										
	 Back Out: ARE Earn-Out
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Land Sales for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Other MB Revenues for Release Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total For Release
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Release Available
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  
 Release % before & after Westbluffs 
  

 76 

 EXHIBIT “B-2” 
  
 PROJECT BUDGET (ALAMEDA [BAYPORT]) 
  

  
 Catellus Development Corporation

 Alameda Cash Flow 
 CDX Perspective

 10/14/2004 
  

																																																							
	 	 	 	  	 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC
 PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

	 	 	 	  	Total

	  	2001

	  	2002
1Q

	  	2Q

	  	3Q

	  	4Q

	  	2003
1Q

	  	2Q

	  	3Q

	  	4Q

	  	2004
1Q

	  	2Q

	  	3Q

	  	Oct

	  	Nov

	  	Dec

	  	2005
Jan

	  	Feb

	  	Mar

	  	Apr

	  	May

	  	Jun

	  	Jul

	  	Aug

	  	Sep

	  	Oct

	 	 	 Sources
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Initial base block value distribution
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Additional Warmington reimb.
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Adjust base block value (B & C)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Deposit allocation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 JV revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 Catellus profit distribution
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Warmington note interest (prime + ***)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Predevelopment loan repay & interest (1) (2)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 G&A and fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 ARRA and BWIP Bonds (related to backbone work)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Maintenance credit & homebuilding pref return EX-SUM
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall loan repay & interest (3)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 City profit participation (repay shortfall loan)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Closing costs (*** of land acquisition price from city)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Predevelopment funding (1)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	below	 	 Residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Land improvements (intract)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Land acquisitions from city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	calc	 	 Net to city (shortfall surplus)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Transfer school fee/pond costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Net cash flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Cumulative cash flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Add back expensed G&A
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap property tax
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap Interest (land)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap G&A
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net income
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Calc net surplus/(deficit) to City
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall funding
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall repay & interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 City profit participation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net to city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Catellus residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Total uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 add back G&A and fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	estimate	 	 less G&A only
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 (1) This reflects *** of the predevelopment work (residential and commercial)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	  Residential ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	  Commercial ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 (2) The predevelopment loan interest rate is ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 (3) The shortfall loan interest rate is ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Lot acquisitions - CDX
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Lot contributions to JV - CDX
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Home sales - Warmington (closed)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	Cash	 	 Commercial
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Summary	 	 Residential Cap Exp
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	by
Group:	 	 Residential Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Total
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Shortfall reimb from model (split btwn shortfall and city pp)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	a	 	 Standard Cost Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Owen Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 Locher Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Net cash outflow excluding g&a
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net cash inflow excluding mgmt fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																												
	 	 	 Adjustments to G&A calculation of Alameda capital expenditures
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Remove land acquisitions from the city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Less residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

  
 Catellus Development Corporation

 Alameda Cash Flow 
 CDX Perspective

 10/14/2004 
  

																																																									
	 	 	 	  	Nov

	  	Dec

	  	2006
Jan

	  	Feb

	  	Mar

	  	Apr

	  	May

	  	Jun

	  	Jul

	  	Aug

	  	Sep

	  	Oct

	  	Nov

	  	Dec

	  	2007
Jan

	  	Feb

	  	Mar

	  	Apr

	  	May

	  	Jun

	  	Jul

	  	Aug

	  	Sep

	  	Oct

	  	Nov

	  	Dec

	  	2008
Jan

	 	 	 Sources
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Initial base block value distribution
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Additional Warmington reimb.
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Adjust base block value (B & C)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Deposit allocation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 JV revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 Catellus profit distribution
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Warmington note interest (prime + ***)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Predevelopment loan repay & interest (1) (2)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 G&A and fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 ARRA and BWIP Bonds (related to backbone work)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Maintenance credit & homebuilding pref return EX-SUM
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall loan repay & interest (3)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 City profit participation (repay shortfall loan)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Closing costs (*** of land acquisition price from city)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Predevelopment funding (1)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	below	 	 Residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Land improvements (intract)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Land acquisitions from city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	calc	 	 Net to city (shortfall surplus)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Transfer school fee/pond costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Net cash flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Cumulative cash flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Add back expensed G&A
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap property tax
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap Interest (land)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap G&A
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net income
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Calc net surplus/(deficit) to City
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall funding
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall repay & interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 City profit participation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net to city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Catellus residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Total uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 add back G&A and fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	estimate	 	 less G&A only
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 (1) This reflects *** of the predevelopment work (residential and commercial)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	  Residential ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	  Commercial ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 (2) The predevelopment loan interest rate is ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 (3) The shortfall loan interest rate is ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Lot acquisitions - CDX
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Lot contributions to JV - CDX
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Home sales - Warmington (closed)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	Cash	 	 Commercial
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Summary	 	 Residential Cap Exp
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	by Group:	 	 Residential Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Total
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Shortfall reimb from model (split btwn shortfall and city pp)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	a	 	 Standard Cost Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Owen Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 Locher Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Net cash outflow excluding g&a
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net cash inflow excluding mgmt fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																													
	 	 	 Adjustments to G&A calculation of Alameda capital expenditures
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Remove land acquisitions from the city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Less residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
  

  
 Catellus Development Corporation

 Alameda Cash Flow 
 CDX Perspective

 10/14/2004 
  

																													
	 	 	 	  	Feb

	  	Mar

	  	Apr

	  	May

	  	Jun

	  	Jul

	  	Aug

	  	Sep

	  	Oct

	  	Nov

	  	Dec

	  	Total

	  	Variance

	 	 	 Sources
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Initial base block value distribution
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Additional Warmington reimb.
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Adjust base block value (B & C)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Deposit allocation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 JV revenue
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 Catellus profit distribution
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Warmington note interest (prime + ***)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Predevelopment loan repay & interest (1) (2)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 G&A and fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 ARRA and BWIP Bonds (related to backbone work)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Maintenance credit & homebuilding pref return EX-SUM
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall loan repay & interest (3)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 City profit participation (repay shortfall loan)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Closing costs (*** of land acquisition price from city)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Predevelopment funding (1)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	below	 	 Residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Land improvements (intract)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Land acquisitions from city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	calc	 	 Net to city (shortfall surplus)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Transfer school fee/pond costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Net cash flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Cumulative cash flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Add back expensed G&A
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap property tax
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap Interest (land)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	a	 	 Cap G&A
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net income
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Calc net surplus/(deficit) to City
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall funding
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Shortfall repay & interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 City profit participation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net to city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Catellus residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Total uses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 add back G&A and fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	estimate	 	 less G&A only
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 (1) This reflects *** of the predevelopment work (residential and commercial)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	  Residential ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	  Commercial ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 (2) The predevelopment loan interest rate is ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 (3) The shortfall loan interest rate is ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Lot acquisitions - CDX
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Lot contributions to JV - CDX
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Home sales - Warmington (closed)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	Cash	 	 Commercial
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Summary	 	 Residential Cap Exp
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	by Group:	 	 Residential Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Total
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Shortfall reimb from model (split btwn shortfall and city pp)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	a	 	 Standard Cost Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	b	 	 Owen Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	c	 	 Locher Model
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Net cash outflow excluding g&a
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Net cash inflow excluding mgmt fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
															
	 	 	 Adjustments to G&A calculation of Alameda capital expenditures
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Remove land acquisitions from the city
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 Less residential uses (backbone)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 *** MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT 
  

 EXHIBIT “B-3” 
  
 PROJECT BUDGET (WEST BLUFFS) 
  

  
 West Bluffs - Playa Del Rey, CA

 Infrastructure Budget 
 as of
9/30/2004, 
  

																																							
	 	 	 	 	 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED SEPARATELY WITH
 THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

	 	 	 	 	 	 	1

	 	2

	 	3

	 	4

	 	5

	 	6

	 	7

	 	8

	 	9

	 	10

	 	11

	 	12

	 	13

	 	14

	 	15

	 	 	 	 
	 Cost
Code

	 	 Description

	 	 Remain-
 ing
to
Com-
 plete

	 	 10/31/
 2004

	 	 11/30/
 2004

	 	 12/31/
 2004

	 	 1/31/
 2005

	 	 2/28/
 2005

	 	 3/31/
 2005

	 	 4/30/
 2005

	 	 5/31/
 2005

	 	 6/30/
 2005

	 	 7/31/
 2005

	 	 8/31/
 2005

	 	 9/30/
 2005

	 	 10/31/
 2005

	 	 11/30/
 2005

	 	 12/31/
 2005

	 	TOTAL

	 	check

	 	 	 Bonds & Fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 10-1001
	 	 Land Purchase
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 10-1010
	 	 Purchase Escrow
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1502
	 	 Fees - Entitlement Processing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1504
	 	 Fees - School
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1505
	 	 Fees - Park
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1506
	 	 Fees - Sewer
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1509
	 	 Fees - Habitat
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1510
	 	 Fees - Library
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1512
	 	 Fees - Storm Drain
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1513
	 	 Fees - Water
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1514
	 	 Permits - Miscellaneous
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1516
	 	 Permits - Encroachment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1530
	 	 Plan Check/Permit - Grading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1531
	 	 Plan Check/Inspection - Sewer
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1532
	 	 Plan Check/Inspection - Water
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1534
	 	 Plan Check/Inspection - Storm Drain
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1535
	 	 Plan Check/Inspection - Landscaping
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1536
	 	 Plan Check/Inspection - Streets
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1537
	 	 Plan Check/Inspection - Walls
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1538
	 	 Plan Check/Permit - Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1550
	 	 Improvement Bonds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1551
	 	 Bonds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1552
	 	 Bonds - HOA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1560
	 	 Deposits/Fees - Electrical
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1561
	 	 Deposits/Fees - Gas
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1562
	 	 Deposits/Fees - Telephone
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1570
	 	 Refunds - Electrical
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1571
	 	 Refunds - Gas
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1572
	 	 Refunds - Telephone
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 15-1598
	 	 Contingency
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 	 	 Total Bonds & Fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 	 	 Offsite Improvements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 20-2001
	 	 Demolition
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2012
	 	 Rough Grading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2013
	 	 Retaining Walls
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2031
	 	 Sanitary Sewer
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2032
	 	 Storm Drain
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2036
	 	 Oil Line Relocation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2040
	 	 Water Systems
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2041
	 	 Water Meters
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2042
	 	 Drainage Devices
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2050
	 	 Trenching/Utility
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2121
	 	 Paving
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2122
	 	 Curb & Gutter
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2123
	 	 Sidewalk/Approaches
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2154
	 	 Street Lighting
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2214
	 	 Erosion Control
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2217
	 	 Weed Abatement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2224
	 	 Signs/Barricades
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2225
	 	 Traffic Signalization
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2227
	 	 Traffic Control
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2229
	 	 Repair and Removal
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2270
	 	 Trails
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 20-2298
	 	 Contingency
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 	 	 Total Offsite Improvements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 	 	 Common Areas
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																				
	 23-2301
	 	 Entry Monuments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2302
	 	 Entry Paving
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2305
	 	 Mailboxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2310
	 	 Gates/Structures
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2320
	 	 Irrigation Systems
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2381
	 	 Area Drains
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2326
	 	 Electrical
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2327
	 	 Lighting Fixtures
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2340
	 	 Finish Grading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2341
	 	 Planting
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2352
	 	 Other Site Amenities
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2371
	 	 Perimeter Fencing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 23-2398
	 	 Contingency
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

  
 West Bluffs - Playa Del Rey, CA

 Infrastructure Budget 
 as of
9/30/2004 
  

																																							
	 	  	 	  	 	  	1

	  	2

	  	3

	  	4

	  	5

	  	6

	  	7

	  	8

	  	9

	  	10

	  	11

	  	12

	  	13

	  	14

	  	15

	  	 	  	 
	 Cost
Code

	  	 Description

	  	 Remain-
 ing to
Com-
 plete

	  	 10/31/
 2004

	  	 11/30/
 2004

	  	 12/31/
 2004

	  	 1/31/
 2005

	  	 2/28/
 2005

	  	 3/31/
 2005

	  	 4/30/
 2005

	  	 5/31/
 2005

	  	 6/30/
 2005

	  	 7/31/
 2005

	  	 8/31/
 2005

	  	 9/30/
 2005

	  	 10/31/
 2005

	  	 11/30/
 2005

	  	 12/31/
 2005

	  	TOTAL

	  	check

	 	  	 Total Common Areas
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 25-2503
	  	 Civil Engineering - Office
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2504
	  	 Civil Engineering - Field
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2505
	  	 Soils Engineering - Office
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2506
	  	 Soils Engineering - Field
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2507
	  	 Landscape Architect
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2508
	  	 Entitlement Consultant
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2509
	  	 Environmental Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2510
	  	 Environmental Engineering - Reimb.
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2511
	  	 Utility Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2512
	  	 Traffic Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2513
	  	 Acoustical Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2514
	  	 Engineering - Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2518
	  	 Consultant - Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2530
	  	 Legal - Entitlement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2535
	  	 Legal - Land Use/Litigation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 25-2598
	  	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Onsite
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 30-3797
	  	 Summary Budget
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 39-3921
	  	 Area Drains
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 39-3930
	  	 Mailboxes
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 39-3940
	  	 Finish Grading
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 39-3971
	  	 Onsite Fencing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 39-3998
	  	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Onsite
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Construction Indirects
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 40-4002
	  	 Breakage/Vandalism
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4020
	  	 Supervision
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4023
	  	 Construction Labor
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4125
	  	 Guard Service
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4130
	  	 Field Office
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4132
	  	 Equipment Rental
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4133
	  	 Temporary Fence
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4134
	  	 Temporary Power
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4135
	  	 Temporary Sanitation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4137
	  	 Temporary Water
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4138
	  	 Street Cleaning
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 40-4398
	  	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 44-4403
	  	 Customer Service
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 44-4425
	  	 Model Refurbishing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 44-4498
	  	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Construction Indirects
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Project Development
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 50-5001
	  	 Architect
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5002
	  	 Landscape Architect
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5006
	  	 Color - Consultant
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5007
	  	 Market Research - Consultant
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5008
	  	 Consultants - Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5015
	  	 Structural Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5017
	  	 Deputy Inspector
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5019
	  	 Electrical Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5109
	  	 Blueprints/Delivery
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5110
	  	 Aerial Photography
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5111
	  	 Travel Expenses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5210
	  	 Plan Check/Permits - Model Cup
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5220
	  	 Plan Check/Permits - Building
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5345
	  	 HOA Budget Prep.
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5350
	  	 Association Dues
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50-5362
	  	 Legal - Project Development
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 54-5460
	  	 Insurance - General Liability
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 54-5461
	  	 Insurance - Builders Risk
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 54-5463
	  	 Accounting/Auditing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 5600-00
	  	 Insurance
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 54-5498
	  	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

  
 West Bluffs - Playa Del Rey, CA

 Infrastructure Budget 
 as of
9/30/2004 
  

																																							
	 	  	 	  	 	  	1

	  	2

	  	3

	  	4

	  	5

	  	6

	  	7

	  	8

	  	9

	  	10

	  	11

	  	12

	  	13

	  	14

	  	15

	  	 	  	 
	 Cost
Code

	  	 Description

	  	 Remain-
 ing
 to Com-
 plete

	  	 10/31/
 2004

	  	 11/30/
 2004

	  	 12/31/
 2004

	  	 1/31/
 2005

	  	 2/28/
 2005

	  	 3/31/
 2005

	  	 4/30/
 2005

	  	 5/31/
 2005

	  	 6/30/
 2005

	  	 7/31/
 2005

	  	 8/31/
 2005

	  	 9/30/
 2005

	  	 10/31/
 2005

	  	 11/30/
 2005

	  	 12/31/
 2005

	  	TOTAL

	  	check

	 	  	 Total Project Development
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Overhead/Finance/Property Tax
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 59-5902
	  	 G&A Expenses
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 59-5906
	  	 Overhead Reimbursement
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6001
	  	 Construction Loan Fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6010
	  	 Appraisal/Inspection Fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6070
	  	 Political Contributions
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6072
	  	 Charitable Donation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6073
	  	 Civic Donation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6101
	  	 Land Loan Interest 1
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6121
	  	 Construction Loan Interest 1
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6122
	  	 Construction Loan Interest 2
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6123
	  	 Construction Loan Interest 3
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6125
	  	 Loan Extension Interest
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6150
	  	 Interest Income
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 68-6820
	  	 Property Tax
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 G&A Charges *** of Direct Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 Overall Project Contingency ***
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60-6498
	  	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Overhead/Finance/Prop. Tax
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Sales Complex
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Sales Complex
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Sales & Marketing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Sales & Marketing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Builder costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Total Cost
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Grand Total incl Builder Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Accrual
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 Accrual Monthly Cash Flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 	  	 Accrual Quarterly
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 Accrual Quarterly Cash Flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Notes: 
  
 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT 
  

  
 EXHIBIT “B-4”

  
 PROJECT BUDGET (SANTA FE DEPOT)

  

  
 CONFIDENTIAL

 For Internal Use Only 
  
 Santa Fe Depot - Master Plan Buildout 
 Private Land Development
Costs 
 9/30/2004 
  

																																							
	 	  	 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SEC
 PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

	Expense Growth Rate	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Description

	  	Remaining
to
Complete

	  	Projections	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	  	  	Oct-04

	  	Nov-04

	  	Dec-04

	  	Jan-05

	  	Feb-05

	  	Mar-05

	  	Apr-05

	  	May-05

	  	Jun-05

	  	Jul-05

	  	Aug-05

	  	Sep-05

	  	Oct-05

	  	Nov-05

	  	Dec-05

	  	POST
2005

	  	Total

	  	Cross
Check

	 Inflation Factor
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Development Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Land Development Costs by AFE	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	New AFE - Acquisitions	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Acquisitions
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Ash/Kettner Parcel
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Subtotal Acquisitions
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Contingency
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Acquisitions
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total New AFE - Acquisitions
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106215000 - Demolition	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Projectwide Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 1 - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 1 - Site Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 2 - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 2 - Site Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 3 - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 3 - Site Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 4 - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 4 - Site Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 5a - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 5a - Site Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 6 - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 6 - Site Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Parcel 9 - Site Clear Demoltion
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Site - Clear Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Subtotal Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Contingency @ 5%
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106215000 - Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106214000 - Projectwide Infrastructure	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Infrastructure
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Environmental
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Civil Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Construction Management
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Geotechnical
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Survey
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SWPPP
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Testing and Inspection
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other Consultants
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Permits & Fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Contingency @ 10%
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106214000 - Projectwide Infrastr.
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Civil Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 PCH Median work
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Trolley Transformer Relocation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

  
 CONFIDENTIAL

 For Internal Use Only 
  
 Santa Fe Depot - Master Plan Buildout 
 Private Land Development
Costs 
 9/30/2004 
  

																																							
	Expense Growth Rate	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Description

	  	 Remaining
to
 Complete

	  	Projections	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	  	  	Oct-04

	  	Nov-04

	  	Dec-04

	  	Jan-05

	  	Feb-05

	  	Mar-05

	  	Apr-05

	  	May-05

	  	Jun-05

	  	Jul-05

	  	Aug-05

	  	Sep-05

	  	Oct-05

	  	Nov-05

	  	Dec-05

	  	POST
2005

	  	Total

	  	Cross
Check

	 Inflation Factor
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Development Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total NEW AFE - Transformer Relocation / PCH Median work
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106205000 - Projectwide Activities	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Design and Planning
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Permits and Plan Check
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Marketing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 PR/Political
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Donations (Civic/Charitable)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Miscellaneous
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Subtotal Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Contingency @ 5%
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106205000 - Projectwide Activities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106206000 - Parcel 1 - Residential	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Design & Planning
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal/Sales Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (Civil)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106206000 - Parcel 1 - Residential
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 AFE 106204000 - Parcel 2 - Residential
(TO BE CLOSED)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (Other)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Public Relations
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (PDC)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106204000 - Parcel 2 - Residential
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 AFE 106207000 - Parcel 3 - Residential
(TO BE CLOSED)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (Civil)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Permits & Plan Check
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Subtotal Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106207000 - Parcel 3 - Residential
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 AFE 106208000 - Parcel 4 - Residential
(TO BE CLOSED)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Demolition
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 87 

  
 Santa Fe Depot - Master Plan Buildout

 Private Land Development Costs 
 9/30/2004 
  

																																							
	Expense Growth Rate	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Description

	  	Remaining
to
Complete

	  	Projections	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	  	  	Oct-04

	  	Nov-04

	  	Dec-04

	  	Jan-05

	  	Feb-05

	  	Mar-05

	  	Apr-05

	  	May-05

	  	Jun-05

	  	Jul-05

	  	Aug-05

	  	Sep-05

	  	Oct-05

	  	Nov-05

	  	Dec-05

	  	POST
2005

	  	Total

	  	Cross
Check

	 Inflation Factor
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Development Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (Other)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106208000 - Parcel 4 - Residential
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106210000 - Parcel 5a - Residential	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (PDC)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106210000 - Parcel 5a - Residential
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106216000 - Parcel 6 - Office/Res	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal / Sales Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (PDC)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106211000 - Parcel 6 - Office/Res
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106212000 - Parcels 7 & 8 - Land	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (PDC)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Environmental
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Environmental
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Environmental
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106212000 - Parcels 7 & 8 - Land
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 AFE 106213000 - Parcels 7 & 8 - Building Improvements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Building Improvements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 General Contractor
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Other costs / should total $99,440
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Environ Reserve
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Environ Consultant
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Architecture
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Plan Check Fees
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Testing and inspection
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Subtotal Building Improvements
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106213000 - Parcels 7 & 8 - Bldg Imp
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	New AFE - Depot Maintenance	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Depot Maintenance
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Maintenance
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total New AFE - Depot Maintenance
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	AFE 106209000 - Parcel 9 - Residential	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

  
 CONFIDENTIAL

 For Internal Use Only 
  
 Santa Fe Depot - Master Plan Buildout 
 Private Land Development
Costs 
 9/30/2004 
  

																																							
	Expense Growth Rate	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	Projections	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Description

	  	Remaining to
Complete

	  	Oct-04

	  	Nov-04

	  	Dec-04

	  	Jan-05

	  	Feb-05

	  	Mar-05

	  	Apr-05

	  	May-05

	  	Jun-05

	  	Jul-05

	  	Aug-05

	  	Sep-05

	  	Oct-05

	  	Nov-05

	  	Dec-05

	  	POST
2005

	  	Total

	  	Cross
Check

	 Inflation Factor
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Land Development Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Legal / Sales Costs
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Predevelopment
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Engineering (PDC)
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Infra, Streets, Utilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Total AFE 106209000 - Parcel 9 - Residential
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Monthly Cash Flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Accrual Amt
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
																				
	 Accrual Cash Flow
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 Notes: 
  

 EXHIBIT “E” 
  
 SPECIAL TASKS (MISSION BAY) 
  
 Without limitation on the obligations set forth in the Development Agreement to which this Exhibit “E” is
attached, Development Manager shall perform the following tasks for the Mission Bay Project by the dates indicated: 
  

									
	 PARCEL(S)

	  	FINAL MAP SUBMITTAL

	 	FINAL MAP APPROVAL

	 	  	TARGET	 	DEADLINE	 	TARGET	 	DEADLINE
	 N4a
	  	***	 	***	 	***	 	***
	 N5
	  	***	 	***	 	***	 	***
	 2-7, 11-13
	  	***	 	***	 	***	 	***
	 9-10
	  	***	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

 EXHIBIT “J” 
  
 SCHEDULE OF BASE DEVELOPMENT FEE 
  
 THIS EXHIBIT (this “Exhibit”) sets forth the “Base Development Fee” described in Section 9.1 of the Agreement
(this “Agreement”) to which this Exhibit is attached and of which this Exhibit forms a part. Except as otherwise indicated, each capitalized term used in this Exhibit shall have the meaning set forth for the same elsewhere in the
Agreement. The Base Development Fee is calculated based on a percentage of (i) gross sales proceeds, (ii) infrastructure reimbursements received and (iii) capital expenditures incurred. The Base Development Fee shall be paid monthly, in arrears,
based on the sum of the following: 
  

	 	(a)	Percentage of Gross Sales Proceeds: *** of Gross Sales Proceeds received by Owner from the sale of properties or cash received from Venture Distributions during the preceding
month. “Gross Sales Proceeds” means the gross purchase price payable (including deposits as and when released, for example release of the Bosa Development Corporation deposit of ***) to Owner (whether (i) as the seller under
a Sale Agreement or an Option Agreement entered into by Owner and a Third Party Purchaser after the Closing Date, or (ii) as the assignee of a Seller’s rights under an Assumed Purchase Agreement) in connection with the Sale of a Property, a
Phase within a Property before deducting closing costs, broker’s commissions or any other amount, charge or fee. 

  

	 	(b)	Percentage of Reimbursements: *** of all infrastructure and other reimbursements actually received by Owner during the preceding month, including, but not limited to,
reimbursements from (i) CFD bond proceeds; (ii) tax allocation or tax increment bond proceeds, (iii) any other reimbursements from third parties (e.g. telecommunication, joint trench reimbursements at the Mission Bay Project), excluding proceeds
from insurance, claims and settlements, and (iv) repayments under the Alameda Shortfall Loan. For purposes of this definition, payments under the Alameda Shortfall Loan resulting from land takedowns shall be excluded from reimbursements.

  

	 	(c)	Percentage of Capital Expenditures: *** of all capital expenditures actually paid by Owner with respect to the Projects during the preceding month. “Capital
Expenditures” means all expenditures for work on the properties, including all hard and soft costs for development and construction work. For purposes of this definition, Capital Expenditures will exclude the infrastructure backbone work on
the Alameda (Bayport) Land owned by the CIC (but will include all in-tract work performed on the Alameda (Bayport) Wholly-Owned Land. 

  
 Example of Base Development Fee 
  
 *** 
  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

 EXHIBIT “K” 
  
 CERTAIN IRR DEFICIENCY CALCULATIONS 
  
 This Exhibit describes the internal rate of return calculation contemplated by Section 9.2 of the Development Agreement (this
“Agreement”) to which this Exhibit is attached and of which this Exhibit forms a part. Except as otherwise indicated in this Exhibit “K”, each capitalized term used herein shall have the meaning given to the same
elsewhere in this Agreement. The internal rate of return calculation is based on actual contributions and actual distributions and therefore is calculated on a “leveraged” basis in the sense that it does not ignore actual financing or
impute artificial financing. Thus, distributions are based on actual cash distributed after debt service and other expenses are paid and any actual reserves are set aside (and distributions are not artificially inflated to ignore financing costs or
adjusted to impute artificial financing costs); similarly, contributions are based on actual contributions (and contributions are not artificially inflated to include amounts paid with financing proceeds or adjusted to impute artificial financing).

  
 A. CERTAIN DEFINITIONS. 
  
 “Contributions” means all contributions made by the members
of FOCIL Holdings to FOCIL Holdings on or after Time 0. If an escrow is used or advances are made by such members or an affiliate prior to the date hereof and later treated as, or credited against, such member’s contributions, then
Contributions shall be deemed made on the date amounts are so deposited into escrow or advanced. 
  
 “Distributions” means all distributions made by any FOCIL Holdings to its members on or after Time 0. 
  
 “IRR Rate” means *** per annum or *** per annum, as
applicable. 
  
 “Time 0” means the date of this
Agreement. However, if an escrow is used or an affiliate of FOCIL Holdings or an affiliate of such members otherwise advance funds for FOCIL Holdings prior to the date of this Agreement (e.g., for due diligence costs), then Time 0 shall mean
the first date any such member or affiliate deposits funds in such escrow or makes such advance. 
  
 B. DEFINITION AND CALCULATION OF IRR DEFICIENCY. With respect to the applicable IRR Rate, the “IRR Deficiency” as of any
particular date means the amount by which (1) the future value as of such date at such IRR Rate, compounded quarterly, of all Contributions made on or before such date (which shall include both such Contributions themselves and a quarterly
compounded return on such Contributions using such IRR Rate), exceeds (2) the future value (as of such date) at such IRR Rate, compounded quarterly, of all Distributions for such IRR Rate (excluding, however, any Distribution to be made on such date
and with respect to which such calculation is being made) made on or before such date (which shall include both such Distributions themselves and a quarterly compounded return on such Distributions using such IRR Rate). The 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

 
“*** IRR Deficiency” is the IRR Deficiency using an IRR Rate of *** per annum, and the “*** IRR Deficiency” is the IRR
Deficiency using an IRR Rate of *** per annum. 
  
 C.
EXAMPLE. As an example, but without limitation on the foregoing, assume the following facts: (a) as of Time 0, there is a Contribution in the amount of $100X and there are no other Contributions on or after Time 0; (b) on the date that is six
months after Time 0, there is a Distribution in the amount of $50X and there are no other Distributions on or after Time 0; and the IRR Rate is *** per annum, compounded quarterly. Given such facts: 
  

	 	•	 	the *** IRR Deficiency as of the date that is six months after Time 0 (calculated immediately before the $50X Distribution is made) will be ***X (i.e., $100X multiplied by ***);

  

	 	•	 	the *** IRR Deficiency as of the date that is six months after Time 0 (calculated immediately after the $50X Distribution is made) will be $*** (i.e., *** minus $50X); and

  

	 	•	 	the *** IRR Deficiency as of the date that is 12 months after Time 0 will be *** (the amount by which (x) $100X multiplied by *** exceeds (y) $50X multiplied by ***).

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 2 

 EXHIBIT “L” 
  
 EARN-OUT DEVELOPMENT FEES 
  
 THIS EXHIBIT (this “Exhibit”) sets forth the “Earn-Out Development Fees” described in
Section 9.3 of the Agreement (this “Agreement”) to which this Exhibit is attached and of which this Exhibit forms a part. Except as otherwise indicated, each capitalized term used in this Exhibit shall have the meaning set forth for
the same elsewhere in this Agreement. 
  
 1. Generally.
Upon the terms and conditions hereinafter stated in this Exhibit, the Development Manager shall be entitled to fees contingent upon the achievement of certain milestones relating to the ultimate sales price received by (a) FOCIL-MB, LLC (“MB
Owner”) in connection with the potential future sale of the South of Channel Lots (the “Mission Bay Earn-Out Lots”) in the Mission Bay Development as described on Schedule L-1 attached to this Exhibit (the “Mission
Bay Earn-Out Lot Schedule”), and (b) FOCIL-WB, LLC (“WB Owner”) in connection with the potential future sale of the lots included in the West Bluffs Land (the “West Bluffs Lots”). If earned in accordance
with the terms and provisions of this Exhibit whether earned before or after termination of the Development Agreement, such fees shall permanently vest and the applicable Owner’s obligation to pay the same shall survive any termination of this
Agreement for any reason. The applicable Owner shall use commercially reasonable efforts to market, or cause to be marketed, the Mission Bay Earn-Out Lots, and the West Bluffs Lots, for sale to third parties, provided that subject to Section 1.8.1
of the Purchase Agreement and Section 3(b) of this Exhibit, the applicable Owner shall have no obligation to sell any such lots at any particular time or for any particular price, regardless of the impact of the applicable Owner’s decision on
any payments that might be due to Development Manager under this Exhibit. 
  
 2. Mission Bay. 
  
 (a) Mission Bay Earn-Out. MB Owner shall pay to Development Manager the “Mission Bay Earn-Out Amount” (as hereinafter defined) if and when Development Manager is entitled to such payment under this Section 2(a). The
“Mission Bay Earn-Out Amount” shall equal the amount, if any, by which the “Mission Bay Discounted Effective Sales Price” (as hereinafter defined) for the Mission Bay Earn-Out Lots exceeds $***. The “Mission Bay
Discounted Effective Sales Price” shall be the “Present Value” (as defined in the Purchase Agreement) of the “Effective Sales Price” (as hereinafter defined) of Mission Bay Earn-Out Lots calculated by
discounting the Effective Sales Price from the “Mission Bay Earn-Out Lots Sale Date” (as hereinafter defined) to *** (the “Calculation Date”). The Mission Bay Earn-Out Amount shall be deemed earned in full on the Mission
Bay Earn-Out Lots Sale Date. The “Mission Bay Earn-Out Lots Sale Date” shall be the date on which the transaction to sell the Mission Bay Earn-Out Lots shall have closed, and MB Owner shall have first received any portion of the
sale proceeds from such third party pursuant to such agreement. MB Owner shall be obligated to pay to Development Manager any Mission Bay Earn-Out Amount only if and when MB Owner in an all cash or financed sale of the Mission Bay Earn-Out Lots,
shall have received all proceeds from such sale, in which event MB Owner shall pay to Development Manager the full Mission Bay Earn-Out Amount. Any amounts payable by MB Owner to Development Manager under this Section 2(a) shall be delivered by MB
Owner to Development Manager (in accordance with written instructions from Development Manager) through the applicable sales escrow from proceeds due MB Owner, or 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

 
one of its Affiliates, attributable to the sale of the Mission Bay Earn-Out Lot resulting in an earn-out payment as set forth herein. Notwithstanding the
foregoing, in no event shall Development Manager be entitled to an earn-out payment under this Section 2(a) (i) in excess of (x) *** if the Mission Bay Earn-Out Lots are sold to “Alexandria” (as defined in the Purchase Agreement)
prior to***, or (y) the *** for any other sale of the Mission Bay Earn-Out Lots, or (ii) for any sale of the Mission Bay Earn-Out Lots that occurs after ***. 
  
 3. West Bluffs Earn-Out. 
  
 (a) WB Owner shall pay to Development Manager the “West Bluffs Earn-Out Amount” (as hereinafter defined) if and when Development
Manager is entitled to such payment under this Section 3(a). The “West Bluffs Earn-Out Amount” shall equal the amount (subject to adjustment as provided in Section 5 below), if any, by which the “West Bluffs Discounted
Effective Sales Price” (as hereinafter defined) for the West Bluffs Lots exceeds *** (subject to adjustment as provided in Section 3(d) below), provided that in no event shall the West Bluffs Earn-Out Amount exceed ***. The “West Bluffs
Discounted Effective Sales Price” shall be the Present Value of the Effective Sales Price of all the West Bluffs Lots calculated by discounting the Effective Sales Price from the “West Bluffs Sale Date” (as hereinafter defined) to
the Calculation Date. If the sale of the West Bluffs lots is to be consummated pursuant to a rolling option or a phased lot takedown sale, then the West Bluffs Effective Sales Price shall be equal to the aggregate amount of the Effective Sales Price
scheduled to be received by WB Owner for each of the West Bluffs Lots (the “Cumulative Option Amount”) during the period commencing on the West Bluffs Sale Date and ending on the date (the “West Bluffs Outside Payment
Date”) which is *** years from the West Bluffs Sale Date, plus the present value of any sale proceeds scheduled to be received by the WB Owner after the West Bluffs Outside Payment Date, discounted to the West Bluffs Outside Payment Date at
a rate of *** per month, compounded monthly. The West Bluffs Effective Sales Price would then be discounted (in accordance with the sentence above) from the West Bluffs Sale Date to the Calculation Date, to determine the West Bluffs Discounted
Effective Sales Price, as if the Cumulative Option Amount was received by WB Owner in full on the West Bluffs Sale Date (see the example set forth on Schedule L-4). The West Bluffs Earn-Out Amount shall be deemed earned in full on the West Bluffs
Sale Date. The table attached hereto as Schedule L-5 provides a summary of the calculation of the Effective Sales Price, the calculation of the Earn-Out amount and the payment of the Earn-Out under the following four scenarios: (i) a full sale of
the project, (ii) a sale under a rolling option or phased takedown, (iii) a WB Owner Financed Sale, and (iv) the Contribution of Lots to a Joint Venture by WB Owner (see Section 3(b) of this Exhibit L). The table attached hereto as Schedule L-6 also
provides examples under each scenario, and for purposes of such examples, it assumed that there is no increase in the scope of the work. The “West Bluffs Sale Date” shall be the date on which the transaction to sell all the West
Bluffs Lots shall have closed, or the date of the first closing of the West Bluffs Lots in the event of a rolling option or phased lot takedown of all the West Bluffs Lots, and WB Owner shall have first received any portion of the sale proceeds from
such third party pursuant to such agreement. WB Owner shall be obligated to pay to Development Manager any West Bluffs Earn-Out Amount only if and when WB Owner (a) in an all cash or financed (other than financing provided by WB Owner to the third
party buyer of the West Bluffs Lots) sale of the West Bluffs Lots, shall have received all proceeds from such sale, in which event WB Owner shall pay to Development Manager the full West Bluffs Earn-Out Amount, or (b) in a sale of the West Bluffs
Lots pursuant to a rolling option or phased lot takedown sale to third party buyers, shall have received from the third party buyer purchase price payments in an amount 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 2 

 
equal to *** of the Cumulative Option Amount (on a non-discounted basis), in which event WB Owner shall pay to Development Manager the “West Bluffs Pro
Rata Portion” (as hereinafter defined) of each future purchase price payment (excluding any time value of money escalators or other interest factors) as and when received from such third party buyer until the full West Bluffs Earn-Out Amount
has been distributed to Development Manager, provided that WB Owner shall have no obligation to make any payments to Development Manager under this Section 3(a) for any purchase price payments received after the West Bluffs Outside Date. The
“West Bluffs Pro Rata Portion” means a percentage equal to the quotient determined by dividing any unpaid West Bluffs Earn-Out Amount by the amount of any future purchase price payments (excluding any time value of money escalators
or other interest factors) not yet received by WB Owner from such third party buyer with respect to the sale of the West Bluffs Lots. Notwithstanding the foregoing, WB Owner shall have no obligation to pay any West Bluffs Earn-Out Amount for
any sale of the West Bluffs Lots that occurs, or first occurs in the case of a rolling option, phased lot takedown, or WB Owner-financed sale to third party buyers, after *** (the “West Bluffs Outside Sale Date”). 
  
 (b) If WB Owner contributes the West Bluffs Lots to a limited
liability company, partnership or other joint venture, then the West Bluffs Earn-Out Amount will be calculated in accordance with Schedule L-7 attached hereto. 
  

(c) Prior to signing a letter of intent for the sale of the West Bluffs Assets, WB Owner shall give Development Manager a proposed form
of letter of intent (the “WB Proposed LOI”) and if Development Manager gives WB Owner written notice within five business days thereafter that it believes that the proposed purchase price is less than market, then Development
Manager shall have the right for thirty (30) days after receipt of the WB Proposed LOI (but not later than the West Bluffs Outside Date) to obtain offers from *** (the “WB Designated Buyers”) on the same terms as the WB Proposed
LOI, but with a price that is at least *** higher than the price in the WB Proposed LOI. If Development Manager is successful in obtaining one or more such offers within such time period, then WB Owner shall accept the highest such offer and shall
endeavor in good faith to consummate the sale of the West Bluffs Assets in accordance with the terms of such offer. 
  
 (d) Prior to the West Bluffs Outside Sale Date, Development Manager shall have the right to approve any settlement of the Assumed
Litigation relating to the West Bluffs Assets that results in affordable housing requirements that will lead to a payment by Development Manager under Section 5 of this Exhibit or a reduction in the West Bluffs Earn-Out Amount that would otherwise
be received by Development Manager. Such approval shall not be unreasonably withheld. In addition, if WB Owner loses the Assumed Litigation relating to the West Bluffs Assets insofar as affordable housing requirements are concerned, then Development
Manager shall have the right to have a representative present at and participate in any meeting between WB Owner and the City of Los Angeles to negotiate what and how affordable housing requirements will be imposed upon the West Bluffs Assets, and
if WB Owner has the right to approve such implementation, then Development Manager shall have the right to approve the same (which approval shall not be unreasonably withheld) except that any election as to whether to make a payment in lieu or
contribution shall be made by WB Owner in its sole discretion. 
  
 (e) Notwithstanding the foregoing: (i) Development Manager shall have no further rights under this Section 3 after the West Bluffs Outside Sale Date except any rights to the 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 3 

 
West Bluffs Earn-Out Amount with respect to a sale of the West Bluffs Lots prior to the West Bluffs Outside Sale Date; and (ii) in addition, Development
Manager shall have no further rights under subsections (c) and (d) above after the date, if any, upon which WB Owner agrees in writing to reduce the *** figure in Section 3(a) to *** (which WB Owner shall have the right, but not the obligation, to
do at any time if WB Owner wishes to terminate Development Manager’s rights under subsections (c) and (d) above), and in the event of such reduction, Development Manager shall continue to have the right to receive the West Bluff’s Earn-Out
Amount upon and subject to the terms and conditions of this Section 3. 
  
 4. Effective Sales Price. For the purposes of this Exhibit, the “Effective Sales Price” of either the Mission Bay Earn-Out Lots or the West Bluffs Lots is equal to (i) the contract price (not including any time value
of money escalators or other interest factors) for such lots sold by the applicable Owner to a third party, less (ii) any increased costs incurred by the applicable Owner due to changes in the scope of work, from the scope of work set forth in
Schedule L-2, required in the reasonable judgment of the applicable Owner for the delivery of such lots to any third party buyer. For the avoidance of doubt, changes in the scope of work do not include market changes in the cost of labor or
materials. 
  
 5. West Bluffs Affordable Housing. If a
portion of the West Bluffs Land is subjected to affordable housing requirements as a result of the “Assumed Litigation” (as defined in the Purchase Agreement), then Development Manager shall promptly pay to WB Owner an amount equal
to the “WB Affordable Housing Payment” (as hereinafter defined). As used herein, the “WB Affordable Housing Payment” means an amount equal to the lesser of (1) *** or (2) the amount, if any, by which (a) the sum of (i) the
sum of the Total Lot Prices specified on Schedule L-3 for each of the residential home sites included in the West Bluffs Land that are subjected to on-site affordable housing requirements and (ii) the product of *** multiplied by the number of
residential home sites included in the West Bluffs Land that are subjected to on-site affordable housing requirements on which affordable housing is required to be constructed exceeds (b) ***. Development Manager shall not pay to WB Owner the WB
Affordable Housing Payment if the sum of in-lieu payments and “Off-Site AH Contributions” (as hereinafter defined) by WB Owner to satisfy affordable housing requirements is less than ***. However, subject to Development Manager’s
approval rights under Section 3(d) of this Exhibit, if all affordable housing requirements with respect to the West Bluffs Land may be satisfied by the payment of an in lieu fee and/or a contribution toward the construction of an off site affordable
housing project (“Off-Site AH Contributions”), WB Owner may elect to pay such fee or make such off site contribution or both, in which event (x) the West Bluffs Earn Out Amount shall be reduced (but not below zero) by the amount of
such fee and/or off site contribution, and (y) if the amount of such fee and/or off site contribution exceeds the West Bluffs Earn Out Amount, then Development Manager shall also pay to WB Owner the WB Affordable Housing Payment, which shall, in
this case, equal the amount of such excess (but not more than ***). 
  
 6. Failure of Mission Bay Closing. Notwithstanding anything to the contrary in this Agreement or the Purchase Agreement, if the “Closing” (as defined in the Purchase Agreement) of the Mission Bay Assets fails to
occur because of a default of the Sellers thereunder, then the West Bluffs Earn-Out Amount shall be deemed to be zero and the West Bluffs Incentive Fee shall be deemed to be zero. Development Manager waives any guarantor or suretyship defense that
may apply by reason of the foregoing. 
  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 4 

 7. Examples. Examples of the calculations under this Exhibit are set forth in Exhibit L-

  
 8. Earn-Out Holdback. 
  
 (a) In accordance with Sections 8(b) and (c) of this
Exhibit “L”, Development Manager shall be entitled to receive up to $*** in Earn-Out Development Fees if the Mission Bay Earn-Out Lots are sold to Alexandria and up to $*** in Earn-Out Development Fees if the Mission Bay Earn-Out
Lots are sold to a person other than Alexandria. Development Manager agrees to refund to the applicable Owners, up to a maximum of $*** of any Earn-Out Development Fees paid to Development Manager (“Maximum Earn-Out Refund”) to the
extent MB Owner does not achieve the “Excess Targeted Return”. The “Excess Targeted Return” shall be calculated based on the excess, if any, of (i) the net present value of actual and pro-forma Net Sale Proceeds from the
Remaining MB Target Lots (the “Adjusted NPV”) over (ii) the net present value of the “Net Sales Proceeds” (as hereinafter defined) from the “Remaining MB Target Lots” (as hereinafter defined) in the Pro-Forma
(the “Pro-forma NPV”). “Net Sales Proceeds” shall mean Gross Sales Proceeds less seller closing costs from such sale, including transfer taxes, surveys, title insurance and any brokerage commission. The
“Remaining MB Target Lots” include six parcels at the Mission Bay Project that are not under contract or a signed letter of intent as of the Closing Date. If Development Manager is terminated under this Agreement for any reason,
Development Manager shall have no future obligation to pay to Owner any future portion of the Maximum Earn-Out Refund, provided that Owner shall be entitled to retain any previous payments on account of the Maximum Earn-Out Refund previously
received by Owner. The Remaining MB Target Lots and the Pro-Forma NPV are presented below (a summary schedule presenting the calculations is included as Schedule L-5 attached hereto): 
  

							
	 Remaining MB Target Lot

	  	Pro-forma Sale Date

	  	Pro-Forma Net
Sales Price (a)

	  	Pro-forma NPV

	 N4 P1
	  	***	  	***	  	***
	 Parcel 3
	  	***	  	***	  	***
	 Parcel 4
	  	***	  	***	  	***
	 Parcel 6
	  	***	  	***	  	***
	 Parcel 40
	  	***	  	***	  	***
	 Parcels 33/34
	  	***	  	***	  	***
	 	  	 	  	
	  	

	 Totals
	  	 	  	***	  	***
	 	  	 	  	
	  	

  

	(a)	Pro-Forma Net Sales Price reflects Pro-Forma Gross Sales Proceeds less 4.0% Closing Costs 

  
 (b) The Adjusted NPV will be calculated at each date that one of the Remaining MB Target Lots is sold, by
replacing the Pro-Forma NPV for such lot with the Actual NPV from the sale. The Actual NPV will be calculated based on the present value of the Net Sales Proceeds from such lot sale, to the Calculation Date, using an annual discount rate of ***
(calculated on a monthly basis using a rate of ***). As an example, if Lot N4 P1 sells in June 2005 for a price of *** with actual closing costs equal to 1.0% of such sale price, yielding Net Sales Proceeds of ***, the 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 5 

 
resulting Actual NPV of this lot sale would be ***. The Actual NPV for this lot sale would replace the Pro-Forma NPV for Lot N4 P1 (*** per above), resulting
in an Adjusted NPV of ***. The increase in the Adjusted NPV over the Pro-Forma NPV of *** (*** minus ***) is the Excess Targeted Return. The Maximum Earn-Out Refund will be reduced by the Excess Target Return – in this case the *** will be
reduced by *** to ***. 
  
 (c) This process will
continue as Remaining MB Target Lots are sold, resulting in updates to the Adjusted NPV. Once the MB Owner shall have received total Excess Targeted Return of ***, Development Manager will have no further obligation to refund any Earn-Out
Development Fees. For purposes of this Section 8, (i) Actual NPV will replace Pro-Forma NPV only to the extent that the Actual NPV exceeds such Pro-Forma NPV, and (ii) if Actual NPV does not exceed Pro-Forma NPV, then Pro-Forma NPV will be used. The
Adjusted NPV calculation will also continue to reflect the Pro-Forma NPV beyond the Pro-Forma sale date, if no actual sale has closed for such parcel. As an example, if Parcel 3 does not sell prior to ***, the Pro-Forma sale date for Parcel 3, the
Pro-Forma NPV will continue to be *** until an actual sale occurs and will then be adjusted to the Actual NPV, only to the extent that the Actual NPV exceeds the Pro-Forma NPV of ***. 
  
 (d) On *** (the “Adjusted NPV True-Up Date”), the Adjusted NPV will be trued-up based on
all actual sales of Remaining MB Target Lots to such date as well as for any Remaining MB Target Lots under contract, with hard money deposits scheduled to close no later than *** (the “Final Adjusted NPV”). For example, if Parcel
40 in under contract to close in February 2008, the Final Adjusted NPV would replace the Pro-Forma NPV for such lot with the Actual NPV calculated based on the contract sale price and date of February 2008. To the extent that the Excess Targeted
Return is less than *** as of the Adjusted NPV True-Up Date, Development Manager shall pay to MB Owner in cash, the Unachieved Excess Targeted Return. The “Unachieved Excess Targeted Return” will be calculated as the difference between ***
(Pro-Forma NPV of *** plus Maximum Earn-Out Refund of ***) and the Final Adjusted NPV. As an example, if Parcel N4 P1 sells for *** in June 2005 with 1.0% closing costs, the Adjusted NPV would be ***. If no other sales occur on the Remaining MB
Target Lots (and no parcels are under contract for sale) by December 31, 2007, then the Final Adjusted NPV would be ***. Development Manager shall pay to MB Owner the Unachieved Excess Targeted Return which is calculated as the difference between
*** and the Final Adjusted NPV of ***, or ***. 
  
 (e) To the extent Development Manager makes a payment to MB Owner for the Unachieved Excess Targeted Return following the Adjusted NPV True-Up Date, Development Manager shall be entitled to a reimbursement of such amount based on the
continued calculation of the Adjusted NPV resulting from actual sales of the Remaining MB Target Lots through the date of the last Remaining MB Target Lot sale in the Pro-Forma - ***(the “Final Pro-Forma Sale Date”). The Adjusted NPV will
continue to be calculated through the Final Pro-Forma Sale Date, with Actual NPV replacing Pro-Forma NPV as sales occur as set forth above (with Actual NPV replacing Pro-Forma NPV only to the extent that Actual NPV exceeds Pro-Forma NPV). Following
each sale of the Remaining MB Target Lots, to the extent the Adjusted NPV calculated after the Adjusted NPV True-Up Date exceeds the Final Adjusted NPV, Development Manager shall be entitled to such excess as a refund, up to the amount of the
Unachieved Excess Targeted Return paid to MB owner. Following the example in Section 8(d) of this Exhibit L, whereby Development Manager has paid to MB Owner the Unachieved Excess Targeted Return of *** after the Adjusted NPV True-Up Date, if

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 6 

 
Parcel 40 is sold in June 2008, generating Net Sales Proceeds of ***, the Adjusted NPV calculated by replacing this actual sale with the Pro-Forma sale for
such parcel would be ***. This Adjusted NPV of *** exceeds the Final Adjusted NPV of *** by ***. Development Manager would in this case, be entitled to a refund of the full amount of the Unachieved Excess Targeted Return paid to MB Owner of $***.

  
 * * * 
  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 7 

 SPECIAL DEVELOPMENT FEE SCHEDULES 
  

			
	 L-1
	  	Mission Bay Earn-Out Lot Schedule
		
	 L-2
	  	Scope of Work Schedule
		
	 L-3
	  	West Bluffs Lot Price Schedule
		
	 L-4
	  	Earn-Out Examples Schedule
		
	 L-5
	  	Earn-Out Holdback Schedule
		
	 L-6
	  	Schedule of West Bluffs Effective Sales Price Calculations
		
	 L-7
	  	JV Scenario Determination Of West Bluffs Earn-Out Amount

  

 8 

 SCHEDULE L-1 
  
 MISSION BAY EARN-OUT LOT SCHEDULE 
  
 “Alexandria III Lots” (as defined in the Purchase Agreement) 
  

 9 

  
 SCHEDULE L-2

  
 SCOPE OF WORK SCHEDULE 
  
 SUMMARY SCOPE OF WORK FOR 
 MISSION BAY PARCELS 26-27 AND WEST BLUFFS 
  
 1. Mission Bay Parcels 26-27. Infrastructure necessary to deliver Parcels 26-27 to “Alexandria” (as defined in the Purchase Agreement) or another
third party buyer is comprised of the normal compliment of underground utilities, street pavement section of curb and gutter and typical streetscape (sidewalk, street lights etc.) in the public right of way. The scope of the above-referenced work
does not include site specific improvements. 
  
 2. West Bluffs. The scope
of work is comprised of the work to improve the “West Bluffs Land” (as defined in the Purchase Agreement) to recorded finished lots, except for the builder site costs (“Builder Costs”). The Builder Costs are school
fees, sewer hook-up fees, library fees, utility refunds (but not utility deposits), precise lot grading, post-construction lot pulls, water meter fees, the final lift of paving on interior streets, in-tract sidewalks (not including those along Bluff
Trail Road and Lincoln Boulevard), the neighborhood traffic improvement program (balance due of $130,000 plus Howard Hughes Realty’s contribution of $200,000), entry monumentation, in-tract landscaping, view wall pilaster veneers, view wall
glass inserts, interior party walls, yard drains and other miscellaneous costs associated with the homebuilding phase of the West Bluffs Project. 
  

 10 

  
 SCHEDULE L-3

  
 WEST BLUFFS LOT PRICE SCHEDULE

  

							
	 Westbluffs Lot Pricing Schedule
 ($ in 000s)

				
	 Lot

	 	 Average
Lot Price

	 	 Lot
Premium

	 	 Total
Lot Price

	1	 	***	 	***	 	***
				
	2	 	***	 	***	 	***
				
	3	 	***	 	***	 	***
				
	4	 	***	 	***	 	***
				
	5	 	***	 	***	 	***
				
	6	 	***	 	***	 	***
				
	7	 	***	 	***	 	***
				
	8	 	***	 	***	 	***
				
	9	 	***	 	***	 	***
				
	10	 	***	 	***	 	***
				
	11	 	***	 	***	 	***
				
	12	 	***	 	***	 	***
				
	13	 	***	 	***	 	***
				
	14	 	***	 	***	 	***
				
	15	 	***	 	***	 	***
				
	16	 	***	 	***	 	***
				
	17	 	***	 	***	 	***
				
	18	 	***	 	***	 	***
				
	19	 	***	 	***	 	***
				
	20	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 11 

							
				
	21	 	***	 	***	 	***
				
	22	 	***	 	***	 	***
				
	23	 	***	 	***	 	***
				
	24	 	***	 	***	 	***
				
	25	 	***	 	***	 	***
				
	26	 	***	 	***	 	***
				
	27	 	***	 	***	 	***
				
	28	 	***	 	***	 	***
				
	29	 	***	 	***	 	***
				
	30	 	***	 	***	 	***
				
	31	 	***	 	***	 	***
				
	32	 	***	 	***	 	***
				
	33	 	***	 	***	 	***
				
	34	 	***	 	***	 	***
				
	35	 	***	 	***	 	***
				
	36	 	***	 	***	 	***
				
	37	 	***	 	***	 	***
				
	38	 	***	 	***	 	***
				
	39	 	***	 	***	 	***
				
	40	 	***	 	***	 	***
				
	41	 	***	 	***	 	***
				
	42	 	***	 	***	 	***
				
	43	 	***	 	***	 	***
				
	44	 	***	 	***	 	***
				
	45	 	***	 	***	 	***
				
	46	 	***	 	***	 	***
				
	47	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 12 

							
				
	48	 	***	 	***	 	***
				
	49	 	***	 	***	 	***
				
	50	 	***	 	***	 	***
				
	51	 	***	 	***	 	***
				
	52	 	***	 	***	 	***
				
	53	 	***	 	***	 	***
				
	54	 	***	 	***	 	***
				
	55	 	***	 	***	 	***
				
	56	 	***	 	***	 	***
				
	57	 	***	 	***	 	***
				
	58	 	***	 	***	 	***
				
	59	 	***	 	***	 	***
				
	60	 	***	 	***	 	***
				
	61	 	***	 	***	 	***
				
	62	 	***	 	***	 	***
				
	63	 	***	 	***	 	***
				
	64	 	***	 	***	 	***
				
	65	 	***	 	***	 	***
				
	66	 	***	 	***	 	***
				
	67	 	***	 	***	 	***
				
	68	 	***	 	***	 	***
				
	69	 	***	 	***	 	***
				
	70	 	***	 	***	 	***
				
	71	 	***	 	***	 	***
				
	72	 	***	 	***	 	***
				
	73	 	***	 	***	 	***
				
	74	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 13 

							
				
	75	 	***	 	***	 	***
				
	76	 	***	 	***	 	***
				
	77	 	***	 	***	 	***
				
	78	 	***	 	***	 	***
				
	79	 	***	 	***	 	***
				
	80	 	***	 	***	 	***
				
	81	 	***	 	***	 	***
				
	82	 	***	 	***	 	***
				
	83	 	***	 	***	 	***
				
	84	 	***	 	***	 	***
				
	85	 	***	 	***	 	***
				
	86	 	***	 	***	 	***
				
	87	 	***	 	***	 	***
				
	88	 	***	 	***	 	***
				
	89	 	***	 	***	 	***
				
	90	 	***	 	***	 	***
				
	91	 	***	 	***	 	***
				
	92	 	***	 	***	 	***
				
	93	 	***	 	***	 	***
				
	94	 	***	 	***	 	***
				
	95	 	***	 	***	 	***
				
	96	 	***	 	***	 	***
				
	97	 	***	 	***	 	***
				
	98	 	***	 	***	 	***
				
	99	 	***	 	***	 	***
				
	100	 	***	 	***	 	***
				
	101	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 14 

							
				
	102	 	***	 	***	 	***
				
	103	 	***	 	***	 	***
				
	104	 	***	 	***	 	***
				
	105	 	***	 	***	 	***
				
	106	 	***	 	***	 	***
				
	107	 	***	 	***	 	***
				
	108	 	***	 	***	 	***
				
	109	 	***	 	***	 	***
				
	110	 	***	 	***	 	***
				
	111	 	***	 	***	 	***
				
	112	 	***	 	***	 	***
				
	113	 	***	 	***	 	***
				
	114	 	***	 	***	 	***
				
	Total	 	***	 	***	 	***
				
	Average	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 15 

  
 SCHEDULE L-4

  
 EARN-OUT EXAMPLE SCHEDULE 
  

									
	 FOCIL Transaction
 Summary of Alexandria 3 Earnout Calculation
 ($ in 000s)
  
 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED
SEPARATELY WITH THE SEC
 PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

					
	Discount Rate	  	 	  	 	  	 	  	 
	 	  	 	  	 Alexandria 3

	 	  	 	  	Proposed	  	Original	  	Difference
	 Month
 Ended
	  	 	  	 Alex 3 Deal

	  	 Assumption (b)

	  	 (Earnout) (c)

	 NPV

	  	 All NPVs
Calc.

	  	 	  	 	  	 
	 Nov-04
	  	 	  	 	  	 	  	 
	 Dec-04
	  	 	  	 	  	 	  	 
	 Jan-05
	  	 	  	 	  	 	  	 
	 Feb-05
	  	 	  	 	  	 	  	 
	 Mar-05
	  	 	  	 	  	 	  	 
	 Apr-05
	  	 	  	 	  	 	  	 
	 May-05
	  	 	  	 	  	 	  	 
	 Jun-05
	  	 	  	 	  	 	  	 
	 Jul-05
	  	 	  	 	  	 	  	 
	 Aug-05
	  	 	  	 	  	 	  	 
	 Sep-05
	  	 	  	 	  	 	  	 
	 Oct-05
	  	 	  	 	  	 	  	 
	 Nov-05
	  	 	  	 	  	 	  	 
	 Dec-05
	  	 	  	 	  	 	  	 
	 Jan-06
	  	 	  	 	  	 	  	 
	 Feb-06
	  	 	  	 	  	 	  	 
	 Mar-06
	  	 	  	 	  	 	  	 
	 Apr-06
	  	 	  	 	  	 	  	 
	 May-06
	  	 	  	 	  	 	  	 
	 Jun-06
	  	 	  	 	  	 	  	 
	 Jul-06
	  	 	  	 	  	 	  	 
	 Aug-06
	  	 	  	 	  	 	  	 
	 Sep-06
	  	 	  	 	  	 	  	 
	 Oct-06
	  	 	  	 	  	 	  	 

  

  
 16 

									
	 Nov-06
	  	 	  	 	  	 	  	 
	 Dec-06
	  	 	  	 	  	 	  	 
	 Jan-07
	  	 	  	 	  	 	  	 
	 Feb-07
	  	 	  	 	  	 	  	 
	 Mar-07
	  	 	  	 	  	 	  	 
	 Apr-07
	  	 	  	 	  	 	  	 
	 May-07
	  	 	  	 	  	 	  	 
	 Jun-07
	  	 	  	 	  	 	  	 
	 Jul-07
	  	 	  	 	  	 	  	 
	 Aug-07
	  	 	  	 	  	 	  	 
	 Sep-07
	  	 	  	 	  	 	  	 
	 Oct-07
	  	 	  	 	  	 	  	 
	 Nov-07
	  	 	  	 	  	 	  	 
	 Dec-07
	  	 	  	 	  	 	  	 
	 Jan-08
	  	 	  	 	  	 	  	 
	 Feb-08
	  	 	  	 	  	 	  	 
	 Mar-08
	  	 	  	 	  	 	  	 
	 Apr-08
	  	 	  	 	  	 	  	 
	 May-08
	  	 	  	 	  	 	  	 
	 Jun-08
	  	 	  	 	  	 	  	 
	 Jul-08
	  	 	  	 	  	 	  	 
	 Aug-08
	  	 	  	 	  	 	  	 
	 Sep-08
	  	 	  	 	  	 	  	 
	 Oct-08
	  	 	  	 	  	 	  	 
	 Nov-08
	  	 	  	 	  	 	  	 
	 Dec-08
	  	 	  	 	  	 	  	 
	 Jan-09
	  	 	  	 	  	 	  	 
	 Feb-09
	  	 	  	 	  	 	  	 
	 Mar-09
	  	 	  	 	  	 	  	 
	 Apr-09
	  	 	  	 	  	 	  	 

  
 Original
Assumptions in model for ***, per Farallon (including plans for ***): 
  

													
	Plan Reimb.

	  	Parcel

	  	SF

	  	Price/SF

	  	Sale Date

	  	Total Proceeds

	$	 ***	  	***	  	***	  	***	  	April-07	  	$	 ***
	 	***	  	***	  	***	  	***	  	April-08	  	 	***
	 	***	  	***	  	***	  	***	  	April-09	  	 	***
	
	
	  	 	  	
	  	
	  	 	  	
	

	$	 ***	  	***	  	***	  	***	  	 	  	$	 ***
	
	
	  	 	  	
	  	
	  	 	  	
	

  

												
	 Example of Alexandria 3 Earnout
	  	 	  	 
					
	 Maximum Earnout:
	  	 	$***	  	 	  	 	  	 
					
	 	  	 	  	Example 1

	  	Example 2

	  	Example 3

	 	  	 	 	  	 	  	 	  	 	  	 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 17 

											
	 	  	 Month Sold:
	  	 	  	Jan-05	  	May-05	  	Aug-08
	 	  	 SF Sold:
	  	 	  	***	  	***	  	***
	 	  	 Price per SF:
	  	 	  	***	  	***	  	***
	 	  	 Sale Price:
	  	 	  	***	  	***	  	***
						
	 	  	 Initial Discounted
	  	 	  	 	  	 	  	 
	 	  	 Period
	  	***	  	 	  	 	  	 
	 	  	 Annual Discount Rate
	  	***	  	 	  	 	  	 
						
	 (a)
	  	 NPV to ***
	  	 	  	***	  	****	  	****
						
	 (b)
	  	 Base Value
	  	 	  	***	  	****	  	****
	 	  	 	  	 	  	
	  	
	  	

	 (c)
	  	 Calculated Earnout = (a) minus (b)
	  	***	  	****	  	****
	 	  	 	  	 	  	
	  	
	  	

	 (d)
	  	 Maximum Earnout
	  	 	  	***	  	****	  	****
	 	  	 	  	 	  	
	  	
	  	

	 (e)
	  	 Earnout Due and Payable
	  	 	  	***	  	****	  	****
	 	  	 	  	 	  	
	  	
	  	

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 18 

									
	 FOCIL Transaction
 Summary of Mission Bay Earnout Calculation (assuming no Alexandria 3 deal)
 ($ in
000s)
  
 THE FIGURES IN THIS TABLE HAVE BEEN
OMITTED AND FILED SEPARATELY WITH THE SEC
 PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
  

	Discount Rate	  	 	  	 	  	 
	 	  	 	  	 Mission Bay (no Alexandria 3 deal)

	Month	  	 	  	Proposed	  	Original	  	Difference
	Ended	  	 	  	 Alex 3 Deal

	  	 Assumption (b)

	  	 (Earnout) (c)

	 NPV

	  	 All NPVs Calc.

	  	 	  	 	  	 
	 Nov-04
	  	 	  	 	  	 	  	 
	 Dec-04
	  	 	  	 	  	 	  	 
	 Jan-05
	  	 	  	 	  	 	  	 
	 Feb-05
	  	 	  	 	  	 	  	 
	 Mar-05
	  	 	  	 	  	 	  	 
	 Apr-05
	  	 	  	 	  	 	  	 
	 May-05
	  	 	  	 	  	 	  	 
	 Jun-05
	  	 	  	 	  	 	  	 
	 Jul-05
	  	 	  	 	  	 	  	 
	 Aug-05
	  	 	  	 	  	 	  	 
	 Sep-05
	  	 	  	 	  	 	  	 
	 Oct-05
	  	 	  	 	  	 	  	 
	 Nov-05
	  	 	  	 	  	 	  	 
	 Dec-05
	  	 	  	 	  	 	  	 
	 Jan-06
	  	 	  	 	  	 	  	 
	 Feb-06
	  	 	  	 	  	 	  	 
	 Mar-06
	  	 	  	 	  	 	  	 
	 Apr-06
	  	 	  	 	  	 	  	 
	 May-06
	  	 	  	 	  	 	  	 
	 Jun-06
	  	 	  	 	  	 	  	 
	 Jul-06
	  	 	  	 	  	 	  	 
	 Aug-06
	  	 	  	 	  	 	  	 
	 Sep-06
	  	 	  	 	  	 	  	 
	 Oct-06
	  	 	  	 	  	 	  	 
	 Nov-06
	  	 	  	 	  	 	  	 
	 Dec-06
	  	 	  	 	  	 	  	 
	 Jan-07
	  	 	  	 	  	 	  	 
	 Feb-07
	  	 	  	 	  	 	  	 
	 Mar-07
	  	 	  	 	  	 	  	 
	 Apr-07
	  	 	  	 	  	 	  	 
	 May-07
	  	 	  	 	  	 	  	 
	 Jun-07
	  	 	  	 	  	 	  	 

  

 19 

									
	Jul-07	  	 	  	 	  	 	  	 
	 Aug-07
	  	 	  	 	  	 	  	 
	 Sep-07
	  	 	  	 	  	 	  	 
	 Oct-07
	  	 	  	 	  	 	  	 
	 Nov-07
	  	 	  	 	  	 	  	 
	 Dec-07
	  	 	  	 	  	 	  	 
	 Jan-08
	  	 	  	 	  	 	  	 
	 Feb-08
	  	 	  	 	  	 	  	 
	 Mar-08
	  	 	  	 	  	 	  	 
	 Apr-08
	  	 	  	 	  	 	  	 
	 May-08
	  	 	  	 	  	 	  	 
	 Jun-08
	  	 	  	 	  	 	  	 
	 Jul-08
	  	 	  	 	  	 	  	 
	 Aug-08
	  	 	  	 	  	 	  	 
	 Sep-08
	  	 	  	 	  	 	  	 
	 Oct-08
	  	 	  	 	  	 	  	 
	 Nov-08
	  	 	  	 	  	 	  	 
	 Dec-08
	  	 	  	 	  	 	  	 
	 Jan-09
	  	 	  	 	  	 	  	 
	 Feb-09
	  	 	  	 	  	 	  	 
	 Mar-09
	  	 	  	 	  	 	  	 
	 Apr-09
	  	 	  	 	  	 	  	 

  
 Original
Assumptions in model for Parcels ***, per Farallon (including plans for ***): 
  

												
	Plan Reimb.

	  	Parcel

	  	SF

	  	Price/SF

	  	Sale Date

	  	Total Proceeds

	$	 ***	  	***	  	***	  	***	  	April-07	  	***
	 	***	  	***	  	***	  	***	  	April-08	  	***
	 	***	  	***	  	***	  	***	  	April-09	  	***
	
	
	  	 	  	
	  	
	  	 	  	

	$	 ***	  	 	  	***	  	***	  	 	  	***
	
	
	  	 	  	
	  	
	  	 	  	

  

												
	 Example of Mission Bay (no ARE 3) Earnout
	  	 	  	 	  	 
					
	 Maximum Earnout:
	  	$	***	  	 	  	 	  	 
	 	  	 	  	Example 1

	  	Example 2

	  	Example 3

	 Month Sold:
	  	 	 	  	May-05	  	Nov-05	  	Aug-08
	 SF Sold:
	  	 	 	  	****	  	***	  	****
	 Price per SF:
	  	 	 	  	****	  	***	  	****
	 Sale Price:
	  	 	 	  	****	  	***	  	****

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 20 

											
	 	  	 Initial Discounted
	  	 	  	 	  	 	  	 
	 	  	 Period
	  	***	  	 	  	 	  	 
	 	  	 Annual Discount Rate
	  	***	  	 	  	 	  	 
						
	 (a)
	  	 NPV to ***
	  	 	  	***	  	***	  	***
						
	 (b)
	  	 Base Value
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (c)
	  	 Calculated Earnout = (a) minus (b)
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (d)
	  	 Maximum Earnout
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (e)
	  	 Earnout Due and Payable
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 21 

											
	 FOCIL Transaction
 Summary Westbluffs Earnout Calculation
 ($ in 000s)
  
 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED
SEPARATELY WITH THE SEC
 PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
  

	Discount Rate	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	Westbluffs

	Month	  	 	  	 	  	Original	  	FOCIL	  	Difference
	Ended	  	 	  	 	  	Assumption

	  	Assumption (b)

	  	(Earnout) (d)

	 NPV

	  	All NPVs Calc.
to 

	  	 	  	 	  	 	  	 
	 Nov-04
	  	 	  	 	  	 	  	 	  	 
	 Dec-04
	  	 	  	 	  	 	  	 	  	 
	 Jan-05
	  	 	  	 	  	 	  	 	  	 
	 Feb-05
	  	 	  	 	  	 	  	 	  	 
	 Mar-05
	  	 	  	 	  	 	  	 	  	 
	 Apr-05
	  	 	  	 	  	 	  	 	  	 
	 May-05
	  	 	  	 	  	 	  	 	  	 
	 Jun-05
	  	 	  	 	  	 	  	 	  	 
	 Jul-05
	  	 	  	 	  	 	  	 	  	 
	 Aug-05
	  	 	  	 	  	 	  	 	  	 
	 Sep-05
	  	 	  	 	  	 	  	 	  	 
	 Oct-05
	  	 	  	 	  	 	  	 	  	 
	 Nov-05
	  	 	  	 	  	 	  	 	  	 
	 Dec-05
	  	 	  	 	  	 	  	 	  	 
	 Jan-06
	  	 	  	 	  	 	  	 	  	 
	 Feb-06
	  	 	  	 	  	 	  	 	  	 
	 Mar-06
	  	 	  	 	  	 	  	 	  	 
	 Apr-06
	  	 	  	 	  	 	  	 	  	 
	 May-06
	  	 	  	 	  	 	  	 	  	 
	 Jun-06
	  	 	  	 	  	 	  	 	  	 
	 Jul-06
	  	 	  	 	  	 	  	 	  	 

  

											
	 Example of Mission Bay (no ARE 3) Earnout
	  	 	  	 	  	 
					
	 Maximum Earnout:
	  	$	  	 	  	 	  	 

  

 22 

											
	 	  	 	  	 	  	Example 1

	  	Example 2

	  	Example 3

	 	  	 Month Sold:
	  	 	  	May-05	  	Aug-05	  	Feb-06
						
	 	  	 Sale Price:
	  	 	  	***	  	***	  	***
						
	 	  	 Initial Discounted Period***
	  	***	  	 	  	 	  	 
	 	  	 Annual Discount Rate***
	  	***	  	 	  	 	  	 
						
	 (a)
	  	 NPV to ***
	  	 	  	***	  	***	  	***
						
	 (b)
	  	 Base Value
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (c)
	  	 Calculated Earnout = (a) minus (b)
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (d)
	  	 Maximum Earnout
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (e)
	  	 Earnout Due and Payable
	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 23 

 FOCIL Transaction 
 Summary Westbluffs Rolling Takedown Earnout Calculation 
 ($ in 000s) 
  

					
	Discount Rate	  	***	  	 
	 Lots
 Sold
	  	***	  	 
	Value/Lot Sold	  	***	  	 
	Gross Sales Proceeds	  	***	  	 

  

					
	(a)	 	NPV of Original FOCIL Underwriting (Base Value) discounted to ***	  	***
	(b)	 	NPV of Total Takedown discounted to ***, grouped at first takedown date and unadjusted for escalations	  	***
	 	 	 	  	

	(c)	 	Calculated Earnout = (b) - (a)	  	***
	(d)	 	Maximum Earnout	  	***
	 	 	 	  	

	(e)	 	Earnout Payable = lesser of (c) or (d)	  	***
			
	(f)	 	Basis for Earnout (Final *** of Unescalated Proceeds
Received)                                    ***	  	***
	(g)	 	Earnout per Dollar of Proceeds Received (Final *** of Unescalated Proceeds Only)	  	***

  

																	
	 	  	 	  	Rolling Takedown Example

	 Month
 Ended

	  	FOCIL
Assumption
(a)

	  	Lot
Take-
Downs

	  	Unescalated
Takedown
Received

	  	Unescalated
Total
Takedown
(b)

	  	Cumulative
Takedown
%

	  	First 65%
of Revenue

	  	Final 35%
of Revenue
(f)

	  	 Earnout
Paid
 = (f) x (g)

	Nov-04	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Dec-04	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Jan-05	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Feb-05	  	THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED SEPARATELY
WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
	Mar-05	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

																	
	 Apr-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Sep-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jan-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Sep-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jan-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
									
	 Total
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

  
 2 

											
	 	  	Example of Westbluffs Earnout	  	 	  	 
						
	 	  	Maximum Earnout:	  	 ***
	  	 	  	 	  	 
	 	  	Calculated Earnout:	  	 ***
	  	 	  	 	  	 
	 	  	Earnout Payable	  	 ***
	  	 	  	 	  	 
						
	 	  	 	  	 	  	Example 1

	  	Example 2

	  	Example 3

	 	  	First Takedown Date:	  	 	  	May-05	  	Nov-05	  	Aug-08
	 	  	Sale Price:	  	 	  	 	  	 	  	 
	 	  	Initial Discounted Period	  	 ***
	  	***	  	***	  	***
						
	 (1)
	  	NPV to ***	  	 	  	***	  	***	  	***
	 (2)
	  	Base Value	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (3)
	  	Calculated Earnout = (1) minus (2)	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (4)
	  	Maximum Earnout	  	 	  	***	  	***	  	***
	 	  	 	  	 	  	
	  	
	  	

	 (5)
	  	Earnout Due and Payable	  	 	  	***	  	***	  	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 3 

 SCHEDULE L-5 
  
 EARN-OUT HOLDBACK SCHEDULE 
  
 FOCIL Transaction 
 Summary of Mission Bay Earn-Out Holdback Calculation 
 ($ in 000s) 
  
 THE FIGURES IN THIS TABLE HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT 
  

															
	 Discount Rate
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
			
	 	  	Base Assumptions - Remaining Major Parcels at Mission Bay (a)

	  	Totals

	 Parcel
 # Units / SF
 Price per Unit/SF

	  	N4 P1

	  	Parcel 3

	  	Parcel 4

	  	Parcel 6

	  	Parcel 40

	  	Parcel 33-34

	  
	 NPV
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-04
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-04
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
								
	 Jan-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Sep-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

															
	 Dec-05
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
								
	 Jan-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Sep-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-06
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
								
	 Jan-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Sep-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-07
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
								
	 Jan-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 2 

															
	 Sep-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-08
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
								
	 Jan-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 May-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jun-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Jul-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Aug-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Sep-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Oct-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Nov-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Dec-09
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
								
	 Jan-10
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Feb-10
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Mar-10
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Apr-10
	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

													
	 Sensitivity
 Analysis
	  	 	  	 	 	 	 	 	 	 	 	 
	(impact on total NPV resulting from changes to specific sale assumptions - leaving all other assumptions the same)	 	 
							
	 Sale Adjustment
 Scenarios

	  	Sale Date

	  	Sale Price

	 	Closing
Costs

	 	Adjusted
NPV

	 	Pro-Forma
NPV

	 	Excess
Targeted
Return

	 ***
	  	Jun-05	  	***	 	***	 	***	 	***	 	***
	 ***
	  	December-05	  	***	 	***	 	***	 	***	 	***

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 3 

													
	***	  	June-05	  	***	  	***	  	***	  	***	  	***
	***	  	December-06	  	***	  	***	  	***	  	***	  	***
	 ***
	  	June-05	  	***	  	***	  	***	  	***	  	***

  

	(a)	Base Assumptions reflect net proceeds from sale after deducting proforma Closing Costs of 4.0% of Gross Sales Proceeds 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 4 

 SCHEDULE L-6 
  
 SCHEDULE OF WEST BLUFFS EFFECTIVE SALES PRICE CALCULATIONS 
  
 West Bluffs Earn-Out 
  

							
	 Transaction Type

	  	 Effective Sales Price

	  	 Calculation of Earn-Out

	  	 Payment of Earn-Out

	Article I. Full Property Sale	  	Equal to Gross Sales Proceeds paid by third-party buyer.	  	West Bluffs Discounted Effective Sales Price equal to NPV of Effective Sales Price from West Bluffs Sale Date to the Calculation Date	  	Cash payment to Development Manager upon closing of the sale
				
	 	  	Example: Effective Sales Price = ***million	  	Example: NPV of Effective Sales Price of *** million from *** to *** @ *** per month = *** less *** = ***	  	Example: Earn-Out of *** million paid to Development Manager at closing of sale to third-party on ***
				
	Example: Property sells for *** million to a third-party buyer in a single transaction on ***(West Bluffs Sale Date)	  	 	  	 	  	 

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

							
	Rolling or Phase Takedown or Option of Lots	  	 Equal to total of Gross Sales Proceeds to be received from third-party buyer for a period of three years from the West Bluffs Sale Date, plus the net
present value of remaining sale proceeds to be received by WB Owner after such date (West Bluffs Outside Payment Date) discounted to the West Bluffs Outside Payment Date using a discount rate of *** per month
	  	West Bluffs Discounted Effective Sales Price equal to NPV of Effective Sales Price from West Bluffs Sale Date to the Calculation Date	  	After WB Owner has received 65% of Gross Sales Proceeds from third-party buyer, Development Manger shall receive the West Bluffs Pro-Rata Potion of remaining proceeds calculated as the Earn-Out
divided by 35% of Gross Sales Proceeds, paid as WB Owner receives proceeds.
				
	Example: Property sells for a total of *** million paid in four takedowns (or options) of *** million each, with closings on *** (West Bluffs Sale Date), ***	  	Example: Effective Sales Price = proceeds received by WB Owner through the West Bluffs Outside Payment Date of *** (three years after West Bluffs Sale Date) — *** plus the NPV of ***
from *** to *** per month = *** for a total Effective Sales Price of ***	  	 Example: NPV of *** from *** to *** per month = *** less *** = *** million. Since this amount exceeds maximum Earn-Out of ***, Earn-Out equals
***.
	  	Example: After Buyer has received *** of Gross Sales Proceeds of *** Development Manager will receive the West Bluffs Pro Rata Portion (calculated as *** divided by remaining proceeds to
be received by WB Owner of ***) of ***. After Buyer receives proceeds from first two takedowns of *** each and *** form the third takedown in December 2007, Development Manager will receive *** of the remaining *** or *** on *** plus *** of proceeds
from the final takedown on ***, or *** (***) for a total Earn-Out of ***
				
	WB Owner Financed Sale	  	Equal to Gross Sale Proceeds paid by third-party buyer.	  	West Bluffs Discounted Effective Sales Price equal to NPV of Effective Sales Price from West Bluffs Sale Date to the Calculation Date	  	Cash payment to Development Manager upon closing of the sale

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 2 

							
	Example: Property sells for a total of *** on ***, with third-party buyer paying *** down payment and WB Owner financing *** for three years at *** rate.	  	Example: Effective Sales Price = *** million	  	Example: NPV of Effective Sales Price of *** million from *** to *** per month = *** less *** = ***	  	Example: Earn-Out of *** paid at closing of sale to third-party on ***
				
	Contribution of Lots to a Joint Venture by WB Owner	  	Equal to estimated fair market value of lots contributed to JV at time of contribution	  	West Bluffs Discounted Effective Sales Price equal to NPV of Effective Sales Price from West Bluffs Sale Date to the Calculation Date	  	Paid based on Development Manager Pro-Rata share calculated as Earn-Out divided by Effective Sales Price, as proceeds are distributed to WB Owner from JV.
				
	Example: WB Owner contributes all lots to a joint venture with a homebuilder on ***. WB Owner to receive preferential return for land contribution plus participation in homebuilding
profits.	  	Example: Estimated FMV of lots at time of contribution, considering distributions and sharing arrangements with JV homebuilder – assumed to be ***.	  	Example: NPV of Effective Sales Price of *** from *** to *** per month = *** less *** = *** million	  	Example: WB Owner receives distributions of *** per quarter for three years (total of ***). In this scenario, Development Manager would receive *** of all distributions (based on ***
Earn-Out divided by *** Effective Sales Price), or *** per quarter up until the time that Development Manager has received its total Earn-Out of *** million (which would occur, in this scenario, in ***).

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 3 

 SCHEDULE L-7 
  
 JV SCENARIO DETERMINATION OF WEST BLUFFS EARN-OUT AMOUNT 
  
 This Schedule to be agreed upon and attached to this page by Development Manager and Owner
within thirty (30) days of the date of this Agreement. 
  

 1 

  
 EXHIBIT “M”

  
 CLOSING INCENTIVE FEE 
  
 THIS EXHIBIT (this “Exhibit”) sets forth the
“Closing Incentive Fee” described in Section 9.5 of the Agreement (this “Agreement”) to which this Exhibit is attached and of which this Exhibit forms a part. Except as otherwise indicated, each capitalized term
used in this Exhibit shall have the meaning set forth for the same elsewhere in the Purchase Agreement. 
  
 1. “Closing Incentive Fee” means an amount equal to *** of “Gross Sales Proceeds” (as hereinafter defined) paid to Owner in
connection with the sale of a “Participating Property” (as hereinafter defined). 
  
 2. “Gross Sales Proceeds” means the gross purchase price payable to Owner in connection with the Sale of a Property or a Phase within a Property (whether (i) as the assignee of a Seller’s right
under that certain Letter of Intent dated as of November 16, 2004 (the “ARE LOI”) by and between Alexander Real Estate Equities, Inc., a Delaware REIT (“ARE”), or (ii) as the assignee of a Seller’s rights under
an “Existing Sale Agreement”) before deducting closing costs, broker’s commissions or any other amount, charge or fee. 
  
 3. “Participating Property” means that certain real property located within the “Mission Bay Development Area” commonly
known as (a) Parcel N4a P1, but only if such Parcel is sold to *** (or an affiliate thereof) pursuant to an Existing Sale Agreement listed on Schedule 11.21 of the Purchase Agreement, (b) Parcel N3 P2, but only if such Parcel is sold to *** (or an
affiliate thereof) pursuant to an Existing Sale Agreement listed on Schedule 11.21 of the Purchase Agreement, (c) Parcel N4a P3, but only if such Parcel is sold to *** (or an affiliate thereof) pursuant to an Existing Sale Agreement listed on
Schedule 11.21 of the Purchase Agreement, (d) Parcel 10a, but only if such Parcel is sold to *** (or an affiliate thereof) *** pursuant to an Existing Sale Agreement listed on Schedule 11.21 of the Purchase Agreement, (e) Parcel 10, but only if such
Parcel is sold to *** (or an affiliate thereof) pursuant to an Existing Sale Agreement listed on Schedule 11.21 of the Purchase Agreement, (f) Parcel 26-1, Parcel 26-2 and Parcel 27-1, but only if such Parcels are sold to *** pursuant to the ***,
and (g) that certain real property located within the “Santa Fe Depot Land” commonly known as Parcel 5a, but only if such Parcel is sold to *** (or an affiliate thereof) pursuant to an Existing Sale Agreement listed on Schedule
11.21 of the Purchase Agreement. 
  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

 SCHEDULE “4.1.1” 
  
 SERVICES AND RESPONSIBILITIES ALLOCATED TO EMPLOYEES AND 
 PERSONNEL OF DEVELOPMENT MANAGER AND ITS AFFILIATES 
  

The functions and tasks to be performed by employees and personnel of the Development Manager and its Affiliates with respect to the Project Assets
will be consistent with the functions and tasks performed by such staff over the past twelve months. These functions generally include (i) the coordination of all marketing efforts and negotiation of sales of land parcels to prospective third-party
buyers, (ii) coordination and oversight of infrastructure design and construction (all related hard and soft costs), (iii) coordination of all entitlements, tentative and final mapping approvals, dedication and transfer of public land and affordable
housing sites, (iv) serving as primary interface with all public agencies related to the Project Assets, including the RDA, (v) assist in the coordination of issuance of CFD and tax increment bonds, (vi) monitor public infrastructure costs at
Mission Bay and coordinate submissions to the RDA for reimbursement of qualified expenses, and (vi) maintain budgets and financial record for all of the Project Assets. The table below provides a summary of some of the specific tasks performed by
employees of the Development Manager regarding the Mission Bay Project. In addition, certain tasks of *** a third party service provider at the Mission Bay Project have been identified to clarify tasks NOT performed by employees of the Development
Manager and not anticipated to be performed by employees of Development Manager in the future. *** costs are third-party consulting costs to be paid by MB Owner. 
  

			
	 Function / Title

	  	 Description of Responsibilities

	 Director, Environmental Services
 (***)
	  	 •      Oversight and close out of North Commons Phase I infrastructure
project
  
 •      Dedication and acceptance of certain infrastructure projects
  
 •      Engage in design/permitting/approval of future infrastructure projects
  
 •      Assist
with purchase agreement and license agreement negotiations (with regard to environmental issues)
  
 •      Apply for and receive U.S. Army Corps of Engineers permits for outfall
structures

		
	 SVP, Finance and Transactions
 (***)
	  	 •      Assist in the marketing and RFP efforts of development
sites
  
 •      Assist in negotiations of purchase and sale agreements
  
 •      Coordinate buyer due diligence efforts and monitor performance obligations

 
 •      Track
and invoice UCSF infrastructure fee contribution payments

		
	 SVP, Urban Development
 (***)
	  	 •      Primary contact with SFRA, Mayor’s Office and other
related City agencies regarding plans, plan documents, and approvals
  
 •      Oversee all aspects of public relations as it relates to Mission Bay

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 1 

			
	 AVP, Construction
 (***)
	  	 •      Oversee rail constraints and obligations, both freight and
passenger
  
 •      Manage water quality issues and compliance with mitigation measures
  
 •      Oversee design and construction of specific infrastructure elements
  
 •      Plan
development and master planning

		
	 Director, Construction
 (***)
	  	 •      Oversee public infrastructure design and construction for
various projects
  
 •      UCSF contribution infrastructure obligations

		
	 AVP, Development
 (***)
	  	 •      Final Mapping Approvals, establishment of entitlements for
Easement and/or Quitclaims
  
 •      Coordinate Regulatory Permits with BCDC
  
 •      Coordinate transfer of various affordable housing sites
  
 •      Oversee,
review and document control on modifications, revisions, and amendments to North of Channel and South of Channel Infrastructure Plan
  
 •      Coordinate all activities related the monitoring and reporting on the Mission Bay EIR
Mitigation requirements.
  
 •      Track and maintain records or status of Infrastructure Improvement Bonds
  
 •      Coordinate with CCSF and Bond Issuance Agent on Bond reduction and
exoneration
  
 •      Coordinate Planning Meeting with CCSF

		
	 Public Finance Analyst
 (***)
	  	 •      Analyze contracts and invoices to determine reimbursable costs
for public infrastructure projects
  
 •      Build and maintain the Public Finance Model for public infrastructure projects and allocate reimbursable costs based on cost type, project area and component detail
  
 •      Prepare
CFD reimbursement requests to the City and track progress of payments
  
 •      Respond to inquiries from the City and it’s agents regarding qualifying costs
  
 •      Request and track DPW approvals of completed components and change orders
  
 •      Maintain
all support documentation for public infrastructure projects including contracts, task orders, change orders, component completions and invoices

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 2 

			
	 ***
 (Third-party consultant)
	  	 •      Pre bid plan review for comments on constructibilty
issues
  
 •      Coordinate bidding of public infrastructure
  
 •      Coordinate selection General Contractor
  
 •      Oversee
construction activities on behalf of the Owner
  
 •      Process RFIs and Submittal Reviews
  
 •      Issue Field Orders
  
 •      Manage contractor for testing and inspection

 
 •      Process all documentation for Change Order approvals
  
 •      Coordinate project punch list acceptance and San Francisco Bureau of—Construction
Management (BCM) project acceptance
  
 •      Provide project reporting to Owner, BCM and other public agency’s as required
  
 •      Construction document management

  

 *** MATERIAL OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

  
 3Loan Agreement between Catellus Finance and a certain FOCIL Entity

 Exhibit 10.16 
  
 LOAN AGREEMENT 
 Alameda (Bayport) 

  
 TABLE OF CONTENTS

  

							
	 	 	 	  	 	  	Page

			
	1.	 	DEFINITIONS; INTERPRETATION	  	1
				
	 	 	1.1	  	Definitions	  	1
	 	 	1.2	  	Conflict	  	8
	 	 	1.3	  	Severability	  	8
	 	 	1.4	  	Preparation	  	9
	 	 	1.5	  	Use of Certain Words	  	9
	 	 	1.6	  	References	  	9
	 	 	1.7	  	Discretion	  	9
	 	 	1.8	  	Incorporation	  	9
	 	 	1.9	  	Titles and Headings	  	9
	 	 	1.10	  	Governing Law	  	10
	 	 	1.11	  	Time	  	10
			
	2.	 	THE LOAN	  	10
				
	 	 	2.1	  	Loan	  	10
	 	 	2.2	  	Payments; Prepayment	  	10
	 	 	2.3	  	Security	  	10
	 	 	2.4	  	Borrower’s Equity Costs, Fees and Expenses	  	11
			
	3.	 	CONDITIONS PRECEDENT	  	12
			
	4.	 	INSURANCE	  	12
			
	5.	 	REPRESENTATIONS AND WARRANTIES	  	12
				
	 	 	5.1	  	Consideration	  	12
	 	 	5.2	  	Organization, Powers and Good Standing	  	13
	 	 	5.3	  	Filings	  	13
	 	 	5.4	  	Non-Foreign Status	  	13
	 	 	5.5	  	Authorization of Loan Documents	  	13
	 	 	5.6	  	No Conflict	  	13
	 	 	5.7	  	Approval	  	14
	 	 	5.8	  	Binding Obligations	  	14
	 	 	5.9	  	Litigation; Adverse Facts	  	14
	 	 	5.10	  	Payment of Taxes	  	14
	 	 	5.11	  	Securities Activities	  	14
	 	 	5.12	  	Government Regulations	  	14
	 	 	5.13	  	Rights to Project Specific Agreements	  	14
	 	 	5.14	  	Financial Condition	  	15
	 	 	5.15	  	Personal Property	  	15
	 	 	5.16	  	Intentionally Omitted	  	15
	 	 	5.17	  	Borrower’s Knowledge	  	15
	 	 	5.18	  	Limitation of Borrower Liability	  	15
			
	6.	 	COVENANTS	  	15

  

					
	 	 	(i)	 	 

							
	 	 	 	  	 	  	Page

	 	 	6.1	  	Consideration	  	15
	 	 	6.2	  	Development Management Agreements	  	15
	 	 	6.3	  	Development Documents and Project Specific Agreements	  	15
	 	 	6.4	  	No Possession	  	15
	 	 	6.5	  	Protection of Lien	  	16
	 	 	6.6	  	Compliance with Legal Requirements	  	16
	 	 	6.7	  	Personal Property	  	16
	 	 	6.8	  	Special Districts	  	16
	 	 	6.9	  	Taxes; Contest Rights	  	16
	 	 	6.10	  	Financial Statements and Reports	  	17
	 	 	6.11	  	Further Assurances	  	17
	 	 	6.12	  	Notices	  	18
	 	 	6.13	  	Maintenance of Existence	  	18
	 	 	6.14	  	Third Party Debt	  	18
	 	 	6.15	  	Property Debt	  	18
	 	 	6.16	  	Payment of Debt	  	19
	 	 	6.17	  	Leases	  	19
	 	 	6.18	  	Intentionally Omitted	  	19
	 	 	6.19	  	Venture Payments	  	19
	 	 	6.21	  	Modification of Certain Documents	  	19
	 	 	6.22	  	Legal Actions	  	20
	 	 	6.23	  	Access to Books and Records	  	20
	 	 	6.24	  	Special Purpose Bankruptcy Remote Entity	  	20
			
	7.	 	EVENTS OF DEFAULT AND REMEDIES	  	21
				
	 	 	7.1	  	Events of Default	  	21
	 	 	7.2	  	Remedies	  	24
			
	8.	 	PARTIAL RECONVEYANCE AND RELEASE	  	26
				
	 	 	8.1	  	Contributions of Real Property to the Venture	  	26
			
	9.	 	ASSIGNMENT OF BUYER’S RIGHTS UNDER THE PURCHASE AND SALE AGREEMENT	  	27
			
	10.	 	ASSIGNMENT OF THE WARMINGTON LOAN DOCUMENTS AND THE SHORTFALL LOAN DOCUMENTS	  	27
				
	 	 	10.1	  	Note Collateral	  	27
	 	 	10.2	  	Pledge and Assignment of, and Grant of Security Interest in, the Note Collateral	  	27
	 	 	10.3	  	Nature of Assignment	  	27
	 	 	10.4	  	Note Collateral	  	28
	 	 	10.5	  	Information About Collateral and Inspection of Books	  	28
	 	 	10.6	  	Good Title	  	29
	 	 	10.7	  	No Future Encumbrance or Transfer	  	29
	 	 	10.8	  	Consents	  	29
	 	 	10.9	  	Perfection of Security Interest	  	29

  

					
	 	 	(ii)	 	 

							
	 	 	 	  	 	  	Page

	 	 	10.10	  	Collateral; Compliance and Defense	  	30
	 	 	10.11	  	Protecting Collateral	  	30
	 	 	10.12	  	Notices	  	30
	 	 	10.13	  	Action by Lender	  	30
	 	 	10.14	  	No Duty to Act	  	31
	 	 	10.15	  	Enforcement Rights	  	31
	 	 	10.16	  	Note Collateral Remedies	  	32
	 	 	10.17	  	Application of Net Proceeds	  	33
	 	 	10.18	  	No Modifications or Settlements Without Lender’s Consent	  	33
			
	11.	 	MISCELLANEOUS	  	33
				
	 	 	11.1	  	Sale of Loan and Loan Participations	  	33
	 	 	11.2	  	Notices	  	35
	 	 	11.3	  	Indemnification	  	35
	 	 	11.4	  	Brokers	  	37
	 	 	11.5	  	Change, Discharge, Termination or Waiver	  	37
	 	 	11.6	  	Waiver	  	37
	 	 	11.7	  	Counterparts	  	37
	 	 	11.8	  	Lender’s Costs and Fees	  	37
	 	 	11.9	  	Reinstatement	  	38
	 	 	11.10	  	Jury Waiver	  	38
	 	 	11.11	  	Integration	  	38
	 	 	11.12	  	Modifications	  	38
	 	 	11.13	  	Independent Effect	  	38
	 	 	11.14	  	Relationship of Lender and Borrowers	  	39
	 	 	11.15	  	Non-Recourse Loan	  	39
			
	12.	 	EXHIBITS	  	39

  

			
	EXHIBIT A	  	LEGAL DESCRIPTION OF REAL PROPERTY
	EXHIBIT B	  	CLOSING CONDITIONS
	EXHIBIT C	  	SINGLE PURPOSE ENTITY
	EXHIBIT D	  	PROPERTY SPECIFIC AGREEMENTS

  

					
	 	 	(iii)	 	 

  
 LOAN AGREEMENT

 Alameda (Bayport) 
  
 THIS LOAN AGREEMENT (this “Agreement”) is made as of November 22, 2004, by and between FOCIL-BP, LLC, a Delaware limited liability
company (“Borrower”), and CATELLUS FINANCE COMPANY, LLC, a Delaware limited liability company (“Lender”), with respect to the following: 
  
 RECITALS : 
  
 A. Borrower has applied to Lender for an acquisition loan
(“Loan”) to fund a portion of the purchase price to acquire concurrently herewith the Alameda (Bayport) Assets (defined below) upon the terms and subject to the conditions set forth herein. 
  
 B. In addition, concurrently herewith, FOCIL-MB, LLC, a Delaware limited
liability company, FOCIL-WB, LLC, a Delaware limited liability company, FOCIL-SFD, LLC, a Delaware limited liability company (collectively, the “CF Capital Borrowers”) are obtaining the CF Capital Loan (defined below) from CF
Capital, LLC, a Delaware limited liability company (“CF Capital”) for the purpose of acquiring the Other Assets (defined below). 
  
 C. Subject to the terms and conditions set forth herein, Lender has agreed to loan to Borrower the Loan Amount (defined below). 
  
 AGREEMENT :

  
 NOW THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. DEFINITIONS; INTERPRETATION. 
  
 1.1 Definitions. As used herein, initially capitalized words and terms shall have the meanings assigned to them below: 
  

“Additional Permitted Prepayments” is defined in Section 3 of the Note. 
  
 “Affiliate” shall mean any Person that
directly or indirectly controls, is controlled by or is under common control with an identified Person; provided, however, that a Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct
or cause the direction of the management, policies and/or decision making of such other Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Applicable Interest Rate” is defined in Section 1 of the Note. 
  

 “Alameda (Bayport) Assets” is defined in the Purchase and Sale Agreement
and includes, without limitation, the Venture Interest, the Shortfall Loan Documents, the Warmington Loan Documents, that portion of the Real Property that has been, or will be from time to time, acquired by Borrower from CIC under the DDA until
such time as it is contributed to the Venture, and the Borrower Transferred Rights and Obligations. 
  
 “Bankruptcy Code” shall mean 11 U.S.C. Sections 101, et seq. 
  
 “Borrower” shall have the meaning assigned
to such term in the Preamble, but shall also mean the permitted successors and assigns as the context requires. 
  
 “Borrowers’ Equity” means an amount equal to Nine Million Nine Hundred Fifty-Eight Thousand Four Hundred Dollars
($9,958,400.00). 
  
 “Borrower
Transferred Rights and Obligations” is defined in the Collateral Assignment of Development Documents. 
  
 “Business Day” means any day of the year other than Saturdays, Sundays, and legal holidays on which national or
California lending institutions are closed. 
  
 “CF Capital” means CF Capital LLC, a Delaware limited liability company. 
  
 “CF Capital Loan” means the loan in the original principal amount of Two Hundred Thirty-Four Million Eight Hundred Six
Thousand Four Hundred Dollars ($234,806,400.00) which is being made by the CF Capital to the CF Capital Borrowers to acquire the Other Assets pursuant to the CF Capital Loan Documents. 
  
 “CIC” means the Community Investment Commission of the City of Alameda, a public body
corporate and politic. 
  
 “City” means the City of Alameda. 
  
 “CLDC” means Catellus Land and Development Corporation, a Delaware corporation. 
  
 “Closing Date” shall mean the Initial Loan Funding Date. 
  
 “Collateral” means the Alameda (Bayport) Assets and all other property or assets of all
Borrower now or hereafter collaterally assigned to Lender as security for the Loan. 
  
 “Collateral Assignment of Development Documents” means the Assignment of Development Documents and Consent of the
Community Investment Commission to the Assignment dated of even date herewith between Lender and Borrower and consented to by CIC pursuant to which Borrower collateral assigns to Lender all of “Borrower’s Transferred Rights and
Obligations” and all other existing or future agreements with the City and/or CIC which facilitate the development of or benefit the Venture Land or the Real Property. 
  

 -2- 

 “Collateral Assignment of Shortfall Deed of Trust” means the Collateral
Assignment of Residential Shortfall Deed of Trust executed and delivered by Borrower in favor of Lender, assigning to Lender the Shortfall Deed of Trust which shall be recorded in the Official Records. 
  
 “DA” is that certain Development Agreement
with the City, dated as of June 6,2000 and recorded in the Official Records on July 21, 2000 as Series No. 2000216843, as amended and more described in the Collateral Assignment of Development Documents. 
  
 “DDA” is that certain Disposition and
Development Agreement with the CIC dated June 16, 2000 and recorded in the Official Records on July 21, 2000 as Series No. 2000216842, as amended and more particularly defined in the Collateral Assignment of Development Documents. 
  
 “Debt” shall mean, as to any Person, all of
such Person’s liabilities, including all indebtedness (recourse and nonrecourse, short term and long term, direct and contingent), all committed and unfunded liabilities and all unfunded liabilities that would appear upon a balance sheet of
such Person prepared in accordance with GAAP. 
  
 “Deed of Trust” shall mean the Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing of even date herewith executed by Borrower in favor of Lender, creating a first lien security interest in that portion
of the Real Property owned in fee by Borrower on the Closing Date, as amended from time to time by a Deed of Trust Amendment, adding as additional collateral for the Loan any Real Property acquired from time to time by Borrower from CIC under the
DDA and shall also mean any new or deed of trust that is executed by Borrower in favor of Lender as required under Section 6 hereof. 
  
 “Deed of Trust Amendment” means an amendment to the Deed of Trust in form and substance acceptable to Lender reflecting
the additional Real Property acquired by Borrower from CIC under the DDA. 
  
 “Development Management Agreement” shall mean that certain Development Agreement dated of even date herewith, between
Borrower and the CF Capital Borrowers, as owners, and Development Manager, as manager, concerning the development, management and operations of the Properties and the Alameda (Bayport) Assets by Development Manager. 
  
 “Development Manager” shall mean Catellus
Urban Construction Inc., a Delaware corporation. 
  
 “Entitlements” shall mean all authorizations, approvals, rights, maps, licenses, permits, franchises, certificates, instruments, documents, agreements, variances and other land use entitlements required for the development
of a Property in accordance with all applicable Legal Requirements and Specific Property Agreements. 
  

 -3- 

 “Environmental Indemnity” shall mean that certain Environmental
Indemnity of even date herewith executed by Borrower in favor of Lender. 
  
 “Environmental Laws” shall have the meaning set forth in the Environmental Indemnity. 
  
 “Event of Default” shall mean the occurrence of any of the events listed in Section 7.1. 
  
 “Financial Statements” shall mean,
collectively, a balance sheet as of the end of the applicable fiscal period (including supporting schedules), statements of income and retained earnings for the applicable fiscal period, and a statement of cash flow for the applicable fiscal period.

  
 “Financing Statement” shall
mean any one of those certain UCC-1 Financing Statements naming Borrower or Guarantor as debtor and Lender as secured party and intended to be filed with the Delaware Secretary of State. 
  
 “GAAP” shall mean generally accepted accounting principles as in effect on the Closing Date
and consistently applied throughout the applicable periods. 
  
 “Governmental Authority” shall mean any federal, state or local governments, and all subdivision thereof, including any agency, authority, board, bureau, commission, department or other public body,
including any court, administrative tribunal or public utility. 
  
 “Guarantor” means FOCIL Holdings, LLC, a Delaware limited liability company. 
  
 “Guaranty” means that certain Guaranty of Recourse Obligations executed by Guarantor in favor of Lender pursuant to which
Guarantor guarantees the recourse obligations of the Borrower under the Loan Documents. 
  
 “Hazardous Substances” shall have the meaning set forth in the Environmental Indemnity. 
  
 “Impositions” shall mean all taxes,
including real and personal property taxes, water and sewer charges, special assessments (including assessments levied by a CFD) and any other similar charges that may be, or become, a lien on the Real Property. 
  
 “Indebtedness” means the Loan Amount,
together with all accrued and unpaid interest thereon, interest accrued at the Applicable Interest Rate or the Default Rate (if applicable), Late Charges (if any), the Prepayment Fee (if any) the Exit Fee, and all other obligations and liabilities
due or to become due to Lender pursuant to the Loan Documents and all other amounts, sums and expenses paid by or payable to Lender pursuant to the Loan Documents. 
  

 -4- 

 “Initial Loan Funding Date” means the day upon which the initial funding
of the Loan occurs. 
  
 “Lease”
shall mean any lease, rental or other occupancy agreement affecting a Property. 
  
 “Legal Action” shall mean an action, suit, claim, investigation, proceeding, mediation, reference or arbitration at law
or in equity or before or by any Governmental Authority, arbitrator or mediator. 
  
 “Legal Requirements” shall mean (a) all decisions, statutes, laws, ordinances, rulings, directions, rules, regulations,
orders, writs, decrees, injunctions, permits, certificates or other requirements of any Governmental Authority in any way applicable to, or affecting, an identified Person and/or thing (including one or more of the Properties), (b) an entity’s
bylaws and articles of incorporation or partnership, limited partnership, limited liability company, joint venture, trust or other form of business association agreement, and (c) all other Contractual Obligations applicable to, or affecting, such
identified Person and/or thing (including the Venture and the Real Property). 
  
 “Lender” shall have the meaning assigned to such term in the Preamble, but shall also mean its permitted successors and assigns as the context requires. 
  
 “Loan Amount” shall mean Thirty-Nine
Million Eight Hundred Thirty-Three Thousand Six Hundred Dollars ($39,833,600.00). 
  
 “Loan Commitment Fee” shall mean an amount equal to One Hundred Ninety-Nine Thousand One Hundred Sixty-Eight Dollars
($199,168.00), which is one-half of one percent (0.5%) of the Loan Amount. 
  
 “Loan Documents” means the loan documents described in Section 3 hereof and all other documents, agreements or instruments evidencing, securing or relating to the Loan. 
  
 “Maturity Date” is defined in Section 1 of
the Note. 
  
 “Note” shall mean
that certain Secured Promissory Note of even date herewith in the Loan Amount executed by Borrower and payable to Lender. 
  
 “Official Records” means the Official Records of Alameda County, California. 
  
 “Outstanding Balance” shall mean the
outstanding principal balance of the Loan as of a certain date. 
  
 “Person” shall mean a natural person, a partnership, a joint venture, an unincorporated association, a limited liability company, a corporation, a trust, any other business association or any
Governmental Authority. 
  

 -5- 

 “Potential Default” means any condition or event that could, with the
lapse of time or the giving of notice thereof by Lender, constitute an Event of Default; 
  
 “Property Specific Agreements” means the DDA, the DA the Warmington Loan Documents, the Shortfall Loan Documents and
those agreements, instruments and documents described on Exhibit D hereto. 
  
 “Purchase and Sale Agreement” shall mean that certain Purchase Agreement dated of even date herewith, executed by
Guarantor, as buyer, and CLDC and the other “Sellers” named therein pursuant to which Borrower is acquiring the Alameda (Bayport) Assets and the CF Capital Borrowers are acquiring the Other Assets, as assigned from Guarantor to Borrower
and the CF Capital Borrowers pursuant to a written assignment dated of even date herewith. 
  
 “Real Property” means (a) that certain real property located in the City of Alameda, County of Alameda, California and
described in Exhibit A which is owned by Borrower on the Closing Date until the time such property is contributed to the Venture and (b) that certain real property that is acquired from CIC at any time after the Closing Date pursuant
to the terms of the DDA until the time such property is contributed to the Venture. 
  
 “Reimbursement and Payment Right(s)” means, individually, any right, and collectively, all rights, a Borrower possesses
to receive the following whether now or hereafter existing: tax increment; proceeds from tax increment; proceeds from TIF bonds; proceeds of CFD bonds, special taxes, performance bond reimbursements, credits, reimbursements or other direct or
indirect payments from any community facility district or similar body (“CFD”), or any other governmental or quasi-governmental authority (or any payments in lieu thereof from any person or entity), including without limitation any
payment to be made under or pursuant to any of “Borrower’s Transferred Rights and Obligations” (as defined in the Collateral Assignment of Development Documents); and the Warmington Note Payments, the Shortfall Note Payments and the
Venture Distributions. 
  
 “Repayment” shall mean Borrowers’ payment of the Loan and all other Indebtedness and all obligations of Borrower under the Loan Documents (other than the Environmental Indemnity). 
  
 “Sellers” means the parties identified as
“Sellers” in the Purchase and Sale Agreement. 
  
 “Security Documents” shall mean the documents described in Section 2.3. 
  
 “Shortfall Deed of Trust” means that certain Deed of Trust dated April 22, 2003 and recorded on May 5, 2003 as Document
No. 2003261373 among CIC, as trustor, First American Title Company, as trustee, and CRL, as beneficiary, whose rights as beneficiary thereunder are concurrently herewith being assigned to Borrower pursuant to the Borrower Shortfall Loan Assignment
(defined below). 
  

 -6- 

 “Shortfall Loan Documents” means the Shortfall Note, the Shortfall Deed
of Trust, and terms and conditions set forth in the DDA regarding the “Residential Shortfall Loan” (as defined in the DDA) and all other documents evidencing, relating to and securing the Shortfall Note. 
  
 “Shortfall Note” means that certain
Promissory Note Secured by Deed of Trust in the original principal amount of $28,800,000.00 executed by CIC to the order of Catellus Residential Land, LLC (“CRL”) whose rights as beneficiary thereunder are being concurrently
herewith assigned to Borrower pursuant to that certain Assignment and Assumption (Alameda Shortfall Loan and Deed of Trust) between Borrower, as assignee, and Lender, as successor in interest to CRL, as assignor, dated of even date herewith
(“Borrower Shortfall Loan Assignment”). 
  
 “Shortfall Note Payment(s)” means individually, any payments, and collectively, all payments, due and to become due under the Shortfall Note, and all collections thereon, and all other amounts paid
thereunder including any and all prepayments; and all other cash and non-cash proceeds thereof. 
  
 “Sole Member” means Guarantor, the sole member of Borrower who has been approved by Lender. 
  
 “Special Purpose Bankruptcy Remote Entity”
is defined in Exhibit G. 
  
 “Title Company” means First American Title Insurance Company. 
  
 “Title Policy” means a title insurance policy in the form of an American Land Title Association Loan Policy-1970 extended
coverage (without revision, modification or amendment) issued from time to time by Title Company to Lender for the Real Property each with a liability limit established by Lender equal to the fair market value of the Real Property so secured as
reasonably determined by Lender, subject to any exceptions of record as of the Closing Date, or that are placed of record after the Closing either as required by the City or any other Governmental Authority or with the approval of Lender and
including such endorsements (including without limitation tie in and first loss endorsements) and other affirmative coverage required by Lender. 
  
 “Venture” means Bayport Alameda Associates, LLC, a Delaware limited liability company, which is governed by the Venture
Agreement (as hereinafter defined). 
  
 “Venture Agreement” means that certain limited liability company agreement captioned “Limited Liability Company Agreement of Bayport Alameda Associates, LLC”, dated as of May [    ],
2002, between CRG, as “Catellus” thereunder, and Warmington Alameda Associates, L.P., as “Builder” and “Homebuilding Manager” thereunder. 
  
 “Venture Distribution(s)” means any “Distribution,” as defined in the Venture
Pledge Agreement, which is payable or has been paid to Borrower pursuant to the Venture Agreement. 
  

 -7- 

 “Venture Interest” means collectively, the interest identified in the
Venture Agreement as the interest of “Catellus”, including all of Borrower’s right, title, and interest in, and claims against, the Venture and, without limitation, all of Sellers’ rights to distributions, capital, profits,
voting, information and control under the Venture Agreement. 
  
 “Venture Land” means the real property owned by the Venture as of the Closing Date and the Real Property that shall from time to time be contributed to the Venture by Borrower after the Closing Date.

  
 “Venture Payment(s)” means
individually, any payment or other sum, and collectively, all payments or other sums, paid or payable to Borrower arising out of a Reimbursement and Payment Right. 
  
 “Venture Pledge Agreement” means the Pledge and Security Agreement executed by Borrower in
favor of Lender, creating a security interest in the Venture Interest. 
  
 “Warmington Loan Documents” means the Warmington Note, the Warmington Membership Pledge and any and all other documents now or hereafter evidencing, relating to or securing the Warmington Note.

  
 “Warmington Note” means that
certain Promissory Note in the original principal amount of $8,000,000.00 executed by Warmington Alameda Associates, L.P,, a California limited partnership (“Warmington”) to the order of Catellus Residential Group, Inc.
(“CRG”) whose rights as payee thereunder were assigned to Borrower pursuant to that certain Assignment and Assumption (Warmington Loan Documents) between Borrower and CRG, dated of even date herewith (“Borrower Warmington
Loan Assignment”). 
  
 “Warmington Note Payment(s)” means individually, any payments, and collectively, all payments, due and to become due under the Warmington Note, and all collections thereon, and all other amounts paid thereunder including
any and all prepayments; and all other cash and non-cash proceeds thereof. 
  
 “Warmington Membership Pledge” means the Membership Pledge Agreement dated May 8, 2003 executed by Warmington in favor of CRG (whose rights thereunder have been assigned to Borrower under the CRG
Warmington Loan Assignment), pursuant to which Warmington pledged to CRG a first lien security interest in all of Warmington’s membership interest in the Venture as collateral for the Warmington Note. 
  
 1.2 Conflict. Except as provided to the contrary in
any of the other Loan Documents, in the event of any conflict between any provision of this Agreement and any provision of the other Loan Documents, the provision of this Agreement shall control. 
  
 1.3 Severability. The unenforceability or invalidity
of any provision of this Agreement as to any Person or circumstance shall not render that provision unenforceable 

  

 -8- 

 
or invalid as to any other Persons or circumstance, and all provisions hereof, in all other respects, shall remain valid and enforceable to the fullest
extent permitted by law. 
  
 1.4
Preparation. This Agreement has been prepared by Lender and its professional advisors and reviewed by Borrower and its professional advisors. Borrower, Lender and their respective advisors believe that this Agreement is the product of all of
their efforts, that it expresses their agreement and that it should not be interpreted in favor of, or against, either Borrower or Lender. The parties further agree that this Agreement will be construed to effectuate the normal and reasonable
expectations of sophisticated borrowers and lenders. 
  
 1.5 Use of Certain Words. As used in this Agreement, (a) the words “include,” “includes” and “including” and words of similar import shall be construed as if followed by the words “without
limitation” (b) the words “hereof,” “herein” and “hereunder” and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provisions of this Agreement; (c) pronouns
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa; and (d) the word “day” shall mean a calendar day unless stated to be a Business Day.

  
 1.6 References. Except as provided
herein to the contrary, references to any “Section” or “Exhibit” herein are to the sections and exhibits of this Agreement. References to any agreement or other document defined herein are to such agreement or documents as
amended, restated, supplemented or otherwise modified. References to any statutory section or act herein are to such section or act as amended and/or recodified as well as to any successor statues thereto. 
  
 1.7 Discretion. If Lender is provided with an option
(e.g., “Lender may”) or other discretionary right to act hereunder (e.g., to elect, approve, require or determine), Lender shall not be obligated to take any action with respect thereto or may exercise such option or take such action,
without an unreasonable delay in doing so, in its sole and absolute discretion, unless provided otherwise, in which case Lender shall act reasonably, promptly (i.e., without unreasonable delay) and without imposing unnecessary or unreasonable
conditions. Furthermore, any approval or consent of Lender required herein must be obtained prior to the act for which Lender’s approval or consent is required, and Lender’s decision to grant or withhold such approval or consent shall be
narrowly construed to cover only the matters identified therein. 
  
 1.8 Incorporation. The preamble and recitals of, and the exhibits attached to, this Agreement are hereby incorporated into, and made a part of, this Agreement. 
  
 1.9 Titles and Headings. The titles and headings of
the sections and exhibits of this Agreement are intended for the convenience of reference only and shall not limit or otherwise affect the meaning of any provision of this Agreement. 
  

 -9- 

 1.10 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California, without giving effect to conflict of laws principles. 
  
 1.11 Time. Subject to the remainder of this Section 1.11, time is of the essence with respect to this Agreement and the performance
of each obligation contained herein. Wherever the time for performance of any obligation hereunder or if, pursuant to this Agreement, a party must act by a particular time, or an act is effective only if done by a particular time, and the last date
for the performance of such obligation or the doing or effectiveness of such act falls on a day other than a Business Day, the time for the performance of such obligation or the doing or effectiveness of such act shall be extended to the next
succeeding Business Day. The first day shall be excluded and the last day shall be included when computing the time in which an obligation is to be performed or an act is to be done under this Agreement. Except as provided herein to the contrary,
all time periods shall end at 5:00 p.m., California time. Lender shall not unreasonably delay (or withhold) its response when Borrowers are required or desire to obtain Lender’s approval or consent hereunder. 
  
 2. THE LOAN. Subject to the provisions of this Agreement, Lender
agrees to lend to Borrowers, and Borrowers agree to borrow from Lender, the Loan Amount. 
  
 2.1 Loan. Proceeds of the Loan that have been repaid may not be re-borrowed. In the event all of the conditions set forth or
referenced in Section 3 have been satisfied by Borrower or waived by Lender on the Closing Date, Lender shall disburse, on the Closing Date, the Loan Amount to the Title Company for the account of Borrower to be used for the payment of the purchase
price due and payable to the “Seller” named under the Purchase Agreement for the Alameda (Bayport) Assets, and Lender shall have no further obligation to make disbursements of proceeds of the Loan. 
  
 2.2 Payments; Prepayment. All payments required to be
made by Borrower to Lender under the Loan Documents, shall be made in lawful money of the United States of America to Lender as directed in the Note, or such other place that Lender may designate, in same day funds, not later than 2:00 p.m.
California time on the date such payment is due. Borrower shall have the right to prepay the Loan in accordance with the terms of the Note. 
  
 2.3 Security. Repayment shall be secured by the following: 
  
 2.3.1 The Deed of Trust recorded in the applicable Official Records and creating a first priority lien on
the Real Property and perfecting a first priority security interest on any fixtures; 
  
 2.3.2 A Financing Statement for Borrower filed with the Delaware Secretary of State and perfecting a first priority security interest in
the Venture Interest and so much of Borrower’s personal property as a security interest is granted and/or created under the Loan Documents; 
  

 -10- 

 2.3.3 The Venture Pledge Agreement constituting a pledge and assignment of the Venture
Interest; 
  
 2.3.4 The Collateral Assignment of
the Development Documents; 
  
 2.3.5 The
Guaranty; 
  
 2.3.6 The Warmington Note Allonge;

  
 2.3.7 The Shortfall Note Allonge; 

 
 2.3.8 Collateral Assignment of Shortfall Deed of Trust;

  
 2.3.9 Such other security documents that
Lender may reasonably request. 
  
 2.4
Borrower’s Equity. Borrower shall furnish equity in the amount of the Borrower’s Equity, which amount shall be funded in cash or other readily available funds and used towards the payment of the purchase price for the Alameda
(Bayport) Assets as required under the Purchase and Sale Agreement. Costs, Fees and Expenses. 
  
 2.4.1 On the Closing Date, Borrower shall pay to Lender so much of the Loan Commitment Fee as has not previously been paid by Borrower to
Lender; 
  
 2.4.2 On the Closing Date, Borrowers
shall pay to Lender an amount equal to all Loan Expenses pursuant and subject to the limitations on Borrowers obligations to pay the same in accordance with Section 5.3 of the Purchase and Sale Agreement. The parties acknowledge and agree that the
terms “Closing Costs” as used in the Purchase and Sale Agreement includes all Loan Expenses. If the Closing Costs exceed “Buyer’s Share of Closing Costs” (as defined in the Purchase and Sale Agreement), then Lender shall
arrange for the payment (and the allocation between Lender and the Sellers under the Purchase and Sale Agreement) of such excess costs pursuant to a separate agreement between Lender and such Sellers. As used herein, “Loan Expenses”
means: (i) all survey charges for the surveys obtained by Borrowers in connection with its acquisition of the Properties that are to be certified to Lender, recording and registration fees and charges; (ii) all documentary stamp and other taxes and
charges imposed by law on the issuance or recording of any of the Loan Documents; and (iii) all title premiums for the Title Policy (and related endorsements); 
  

2.4.3 To the extent not paid pursuant to Section 2.5.2, Borrower shall, within ten (10) days after written demand, pay to Lender all
customary and reasonable costs, fees (including appraisal and attorneys’ fees) and expenses paid or incurred by Lender in connection with the Loan, including any costs, fees and expenses incurred in connection with the preparation and
negotiation of any modification or “workout” of the Loan, the perfection, protection, exercise or enforcement of the rights of Lender under the Loan Documents and the fees of any consultant hired by Lender as permitted herein. The Security
Documents 

  

 -11- 

 
shall secure any costs, fees and expenses expended by Lender. The obligations of Borrower under this Section 2.5.3 shall survive the reconveyance or other
release of the Collateral. 
  
 3. CONDITIONS PRECEDENT.
Notwithstanding the execution of this Agreement by Lender, the obligation to make the Loan, is conditioned upon (a) Borrower’s satisfaction, or Lender’s waiver, of the conditions set forth in Exhibit B; (b) Title Company’s
unconditional and irrevocable commitment to issue the Title Policy for each the Real Property owned by Borrower on the Closing Date; and (c) Lender’s receipt of the following documents, together with such other documents as Lender may
reasonably require: 
  
 3.1 This Agreement;

  
 3.2 The Note; 
  
 3.3 The Deed of Trust; 
  
 3.4 The Pledge and Security Agreement; 
  
 3.5 The Guaranty; 
  
 3.6 The Financing Statements; 
  
 3.7 Collateral Assignment of the Development Documents;

  
 3.8 The Environmental Indemnity; 

 
 3.9 Originals of all “Consents” from any third
party in connection with the Development Documents (defined in the Collateral Assignment of Development Documents), the Note Collateral, and the Venture Pledge Agreement to the extent any such third party consent is required for the creation or
perfection of the security interests in the Collateral contemplated herein or in the Loan Documents; 
  
 3.10 Taxpayer Identification Number Forms for Borrower 
  
 3.11 The Warmington Allonge 
  
 3.12 The Shortfall Loan Allonge; and 
  
 3.13 The Collateral Assignment of Shortfall Deed of Trust. 
  
 4. INSURANCE. Borrower shall obtain and maintain the insurance
required under the Deed of Trust, the Venture Agreement and the Development Management Agreement. 
  
 5. REPRESENTATIONS AND WARRANTIES. 
  
 5.1 Consideration. As an inducement to Lender to execute this Agreement and to make the Loan, Borrower represents and warrants to
Lender that all of the statements set forth in this Section 5 are, and will be, correct and complete in all material respects as of the Closing Date and shall survive through and including the Maturity Date. 
  

 -12- 

 5.2 Organization, Powers and Good Standing. 
  
 5.2.1 Borrower is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Delaware and is registered to do business in and is in good standing under the laws of the State of California. Borrower has all requisite limited liability company
power and limited liability company authority, rights and franchises to own and operate its properties (including the Property), to carry on its businesses as now conducted and as proposed to be conducted, and to enter into and perform its
obligations under the Loan Documents executed by Borrower. The address of Borrower’s chief executive office and principal place of business is c/o Farallon Capital Management, L.L.C., One Maritime Plaza, Suite 1325, San Francisco, California
94111, Attention: Richard B. Fried. 
  
 5.2.2
Guarantor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Guarantor has all requisite limited liability company power and limited liability company authority, rights and
franchises to own and operate its properties, to carry on its businesses as now conducted and as proposed to be conducted, and to enter into and perform its obligations under the Loan Documents executed by Guarantor. 
  
 5.3 Filings. 
  
 5.3.1 Borrower and Guarantor has made all filings in each
jurisdiction in which the character of the property it owns or the nature of the business it transacts makes such filings necessary or where the failure to make such filings could have a materially adverse effect on the business, operations, assets,
condition (financial or otherwise) or prospects of Borrower or Guarantor, as applicable. 
  
 5.4 Non-Foreign Status. Borrower is not a “foreign corporation,” “foreign partnership,” “foreign
trust,” or “foreign estate,” as those terms are defined in the Revenue Code and the regulations promulgated thereunder. 
  
 5.5 Authorization of Loan Documents. The execution, delivery and performance by Borrower and Guarantor of the Loan Documents
executed by Borrower or Guarantor, as applicable, have been duly authorized by all necessary action. 
  
 5.6 No Conflict. The execution, delivery and performance by Borrower of the Loan Documents executed by Borrower and Guarantor, as
applicable, will not (a) violate the operating agreements of Borrower or Guarantor; (b) to Borrower’s knowledge, violate any Legal Requirement applicable to Borrower or Guarantor, or any of their respective properties (including the
Collateral); and (c) result in or require the creation (except as contemplated by the Loan Documents) of any lien on, or security interest in, any of Borrower’s properties. 
  

 -13- 

 5.7 Approval. No approvals, authorizations or consents, except those that have
been obtained, are required for the due execution, delivery and performance by Borrower and Guarantor of the Loan Documents executed by Borrower and Guarantor, as applicable. 
  
 5.8 Binding Obligations. The Loan Documents executed by Borrower and Guarantor have been duly
executed and delivered by, or on behalf of, Borrowers and Guarantor, respectively, and are legally valid and binding obligations of Borrower and Guarantor, enforceable against Borrower and Guarantor in accordance with their terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity. 
  
 5.9 Litigation; Adverse Facts. There is no Legal Action pending or, to the knowledge of Borrower,
threatened by, against or otherwise affecting Borrower or Guarantor (other than the Retained Litigation or Assumed Litigation, as such terms are defined in the Purchase and Sale Agreement): (a) that, if adversely determined against Borrower or
Guarantor could materially adversely affect the ability of Borrower or Guarantor to perform its obligations under the Loan Documents; or (b) questioning the validity or the enforceability of the Loan Documents. There is no basis known to Borrower
for any such Legal Action. To the best knowledge of Borrower, neither Borrower or Guarantor are in violation of any Legal Requirement applicable to it. 
  
 5.10 Payment of Taxes. All tax returns and reports of Borrower and Guarantor required to be filed have been timely filed, and all
taxes, fees and other charges that are due and payable to Governmental Authorities by Borrower or Guarantor in connection with its assets, income and franchises, have been paid prior to delinquency. 
  
 5.11 Securities Activities. Borrower is not engaged
principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any “margin stock” (as defined within Regulations T and U of the Board of Governors of the Federal Reserve
System), and none of the value of such Borrower’s assets consists of such margin stock. No part of the Loan will be used to purchase or carry any margin stock or to extend credit to others for that purpose or for any other purpose that violates
the provisions of Regulations U or X of the Board of Governors. 
  
 5.12 Government Regulations. Borrower is not subject to regulation under the Investment Company Act of 1940, the Federal Power Act, the Public Utility Holding Company Act of 1935, the Interstate Commerce Act or
any other federal or state statute or regulation limiting its ability to incur Debt. 
  
 5.13 Rights to Project Specific Agreements. Borrower is the owner of all rights acquired from Sellers in and to all existing
Project Specific Agreements. Borrowers’ interest in the Project Specific Agreements is not, and will not be, subject to any claim (other than under the Loan Documents), set-off or deduction other than in the ordinary course of business.

  

 -14- 

 5.14 Financial Condition. Borrower and Guarantor each are solvent, and no
bankruptcy, reorganization, insolvency or similar proceeding has been initiated with respect to any Borrower under the Bankruptcy Code or any other similar state or federal law. Borrower has received reasonably equivalent value for the granting of
the security interests created and perfected pursuant to the Security Documents, and the granting of such security interests does not constitute a fraudulent conveyance. 
  
 5.15 Personal Property. Borrower is now, and shall continue to be, the owner of the “Personal
Property” (as defined in the Deed of Trust) acquired from Sellers free from any lien, security interest or adverse claim of any kind whatsoever, except for liens or security interests in favor of Lender, or otherwise approved by Lender,
including, without limitation, pursuant to Section 6.16 hereof. 
  
 5.16 Intentionally Omitted. 
  
 5.17 Borrower’s Knowledge. For purposes of the Loan Documents, the phrase “to Borrower’s knowledge”, or similar words (such as “to the best of Borrower’s knowledge”) shall
mean the current actual knowledge of Seth Hamalian and/or Richard Fried, without any duty of investigation or inquiry of any other person. 
  
 5.18 Limitation of Borrower Liability. Notwithstanding anything to the contrary contained in the Loan Documents, Borrower shall not
be liable to Lender for any loss or damage to Lender as a result of a breach of the representations and warranties contained in this Section 5 if such representation or warranty was actually known to be inaccurate by Lender as of the date of this
Agreement. 
  
 6. COVENANTS. 
  
 6.1 Consideration. As an inducement to Lender to
execute this Agreement and to make the Loan, Borrower covenants for the benefit of Lender as set forth in this Section 6, which covenants shall remain in effect, except as provided herein to the contrary, until the Outstanding Balance of the Loan
has been repaid in full. 
  
 6.2 Development
Management Agreements. Borrower will not grant a security interest in the Development Management Agreement other than to Lender. Borrowers will perform and discharge in all material respects all of its obligations under the Development
Management Agreement. 
  
 6.3 Development
Documents and Project Specific Agreements. Borrower will not grant a security interest in any of the Project Specific Agreements other than to Lender. Borrower will perform and discharge in all material respects all of its obligations under the
Project Specific Agreements and shall provide Lender with a copy of any notice of default received by a Borrower thereunder. 
  
 6.4 No Possession. Borrower will not permit any receiver, trustee or assignee for the benefit of creditors of Borrower to be
appointed to take possession of the any of the Collateral. 
  

 -15- 

 6.5 Protection of Lien. Except for the liens referenced in the Title Policy and
the liens expressly permitted elsewhere in the Loan Documents including under Section 6.16 of this Agreement, Borrower will maintain each lien created by the Deed of Trust as a valid first priority lien on the Real Property secured thereby.

  
 6.6 Compliance with Legal
Requirements. Borrower will comply in all material respects with all Legal Requirements applicable to it, and the Real Property and will use commercially reasonable efforts to cause the Venture to comply in all material respects with all Legal
Requirements applicable to the Venture and will provide Lender with a report of any search performed by a Governmental Authority for violations of such Legal Requirements. 
  
 6.7 Personal Property. Except as permitted pursuant to Section 6.16, Borrower will not incorporate
any materials, equipment or fixtures into the Real Property that are subject to any instrument, document or agreement wherein the right is reserved to any Person to remove or repossess any such materials, equipment or fixtures, or whereby title to
the same is not vested in Borrower at the time of installation, and Borrower will, upon written demand, deliver to Lender all instruments, documents and agreements pursuant to which Borrower claims title to any such materials, equipment or fixtures
incorporated into the Real Property. 
  
 6.8
Special Districts. Except for any existing CFDs and any CFD contemplated by, and consistent with, any Property Specific Agreement approved by Lender, Borrower shall notify Lender of any intent or proposal to include the Real Property in a
CFD, and, unless approved of by Lender as provided in this Section 6.10, shall object to the inclusion of the Real Property therein; provided, however, that Borrower shall not object to, and shall vote for, the inclusion of the Real Property in a
CFD contemplated by, and consistent with, any Property Specific Agreement approved by Lender. Lender shall also have the right to file, in the name of Borrower or otherwise, a written objection to the inclusion of the Real Property in any such CFD,
and to appear at, and participate in, any hearing with respect to the formation of any such CFD. 
  
 6.9 Taxes; Contest Rights. Borrower shall pay or discharge all lawful claims, including Impositions and other taxes, assessments
and governmental charges or levies imposed on Borrower or its assets (including the Real Property), prior to the date upon which penalties attach thereto, and shall submit evidence to Lender confirming the payment of the same; provided, however,
that Borrower may, in good faith, contest any such claims by appropriate Legal Action so long as: 
  
 6.9.1 Borrower has a reasonable basis for such contest; 
  
 6.9.2 Borrower pays, prior to the date any interest or penalties will attach thereto, any portion of such
claims that Borrower does not contest; 
  
 6.9.3
Borrower’s contest will not result in, or pose any risk of, the seizure, sale or imposition of a lien on any Property; 
  

 -16- 

 6.9.4 Borrower delivers to Lender a bond or other security as Lender may require in
connection with such contest; 
  
 6.9.5 Borrower
prosecutes such contest with due diligence; and 
  
 6.9.6 Borrower pays, prior to the date any interest or penalties will attach thereto, the amount of the disputed claim that is determined to be due and owing by Borrower (if not bonded or secured pursuant to Section 6.11.4). 
  
 In the event Borrower does not prevail in any such contest
and make any payment required to be made pursuant to this Section 6.11, Lender may draw or realize upon any bond or other security delivered to Lender in connection with the contest by Borrower, in order to make such payment. 
  
 6.10 Financial Statements and Reports. 
  
 6.10.1 Borrower shall provide Lender with the following with
respect to each Borrower: 
  
 6.10.1.1 Tax
returns for each fiscal year of Borrower and the Venture, as soon as available, and in any event within thirty (30) days after the date such returns are filed; and 
  
 6.10.1.2 Financial Statements for each fiscal year of Borrower and the Venture, as soon as available, and
in any event within ninety (90) days after the end of each such fiscal year, which shall be (a) prepared in reasonable detail in accordance with GAAP (on an accrual basis) provided that such financial statements need not be audited (provided that if
the Venture does not currently prepare its Financial Statements in accordance with GAAP, then such statements need only be prepared in accordance with the Venture’s current practice and method), and (b) signed and certified as correct and
complete by Borrower and the Venture, as applicable. 
  
 At Lender’s request, Borrower will provide Lender with a copy of any and all reports relating to the Alameda (Bayport) Assets received by Borrower from the Development Manager or any other party.  
  
 6.11 Further Assurances. Borrower shall execute and
deliver, promptly after Borrower’s receipt of any written request therefor by Lender, all instruments, documents and agreements, and shall take such other action that Lender reasonably determines is necessary, to maintain, perfect or insure
Lender’s security interest in the security provided for the Loan, including the execution of such modifications to the Loan Documents and the delivery of such endorsements to the Title Policies as Lender shall require, and Borrower shall pay
all costs, fees (including attorneys’ fees) and expenses related thereto. Promptly upon the request of Lender, Borrower shall execute and deliver a certification of non-foreign status under Revenue Code Section 1445. Furthermore, Borrower
authorizes Lender to file any financing statements and financing statement changes, 

  

 -17- 

 
renewals and continuations to perfect Lender’s security interest in the security provided for herein and in the other Loan Documents. 
  
 6.12 Notices. Borrower shall promptly give Lender
notice of the following: 
  
 6.12.1 Unless
previously delivered to Lender prior to the date hereof, any written notice of an impending, or actual, lien, levy, attachment or restraint made or filed against the Real Property or the Venture, or any receiver, trustee or assignee for the benefit
of creditors appointed to take possession of a Property; 
  
 6.12.2 Unless previously known to Lender prior to the date hereof, any Legal Action that is instituted by or against a Borrower; 
  
 6.12.3 Unless previously known to Lender prior to the date hereof, any material default on the part of
Borrower or the Venture under any of the Project Specific Agreements, which notice shall include a copy of each notice of default received from any other party thereto; 
  
 6.12.4 Any change, or contemplated change, in (a) the location of Borrower’s principal place of
business, (b) the legal, trade or fictitious business names used by Borrower, or (c) the purpose or business of Borrower. 
  
 6.13 Maintenance of Existence. Borrower will (a) maintain and preserve its existence and all rights, franchises and licenses
material to its business or necessary for the Real Property or the Venture Interest; (b) maintain its assets in good order and repair; (c) conduct its business in an orderly manner without voluntary interruption; and (d) maintain its chief executive
office and principal place of business in the State of California. 
  
 6.14 Third Party Debt. Borrower shall not, without Lender’s consent, incur, or become liable for, nor allow any Venture to incur, or become liable for, any Debt, whether secured or unsecured, in favor of
any Person, other than (a) the Loan; (b) trade debt incurred in the ordinary course of a Borrower’s business in connection with the Real Property, including any guaranties, letters of credit, bonding and indemnities incurred in the ordinary
course of owning, developing, constructing and operating, marketing and selling the Real Property all of which shall be subordinate to Borrowers’ payment obligations under the Loan Documents; (c) Impositions; (d) the CFD Bonds; (e) debt
obligations of the Venture existing on the Closing Date; (f) debt obligations of the Venture to which Borrower does not have the right to prevent under the Venture Agreement; (g) Debt of the direct or indirect members of the Sole Member so long as
such Debt is not assumed or guaranteed by the Borrower; and (h) such other exceptions as Borrower may request subject to Lender’s approval in its sole and absolute discretion (provided that if Development Manager, but not any successor to
Development Manager, recommends to a Borrower that it incur additional Debt, then Lender’s approval to the same shall not be unreasonably withheld). 
  
 6.15 Property Debt. Except for the Security Documents, and Impositions, the Alameda (Bayport) Assets shall not be security or
collateral, be encumbered by any 

  

 -18- 

 
mortgage or deed of trust or otherwise hypothecated for any Debt in favor of any Person except as Borrowers may otherwise request from Lender and subject to
Lender’s approval in its sole and absolute discretion. 
  
 6.16 Payment of Debt. Borrower will: 
  
 6.16.1 Duly and promptly cause to be paid prior to delinquency all principal of and interest on any Debt of Borrower and use commercially reasonable efforts to cause the Venture to duly and promptly pay prior to
delinquency all principal of and interest on any Debt of the Venture, 
  
 6.16.2 Comply with, and perform, in all material respects all provisions of the instruments, documents and agreements evidencing or securing such Debt, 
  
 6.16.3 Promptly inform Lender of any default, or anticipated default, under any such instrument, document or
agreement, and 
  
 6.16.4 Forward to Lender a
copy of any notice of default or notice of any event that might result in a default under any such instrument, document or agreement, including liens encumbering the Real Property that have been subordinated to the Deed of Trust (regardless of
whether or not permitted under this Agreement). 
  
 Notwithstanding the foregoing, Borrower shall have the right to contest any default or anticipated default described in Section 6.18.3 in accordance with all applicable requirements of Section 6.11; provided that no bonding or security for
an anticipated default shall be required prior to receipt of a default notice. 
  
 6.17 Leases. Borrower shall not enter into any Lease or amend or terminate any existing Lease, and Borrower shall not permit the
Venture to enter into any Lease or amend or terminate any existing Lease (other than those that Borrower has no right to prevent the Venture from entering into, amending or terminating), without the prior written consent of Lender, which consent
shall not be unreasonably withheld. 
  
 6.18
Intentionally Omitted. 
  
 6.19 Venture
Payments. Borrowers shall not accept or receive any Venture Payment without the concurrent payment directly to Lender of the applicable Mandatory Principal Payment (as defined in the Note). 
  
 6.20 Real Property Acquisitions. Borrower shall not
acquire any Real Property from the CIC under the DDA without first complying with the provisions of Section 6.25 hereof. 
  
 6.21 Modification of Certain Documents. Without Lender’s prior written approval, Borrower shall not hypothecate or modify any
Project Specific Agreement; provided that approval of such modification by Lender shall not be unreasonably 

  

 -19- 

 
withheld, conditioned or delayed. Furthermore, Borrower shall promptly provide Lender with a copy of all documents evidencing any approved modification or
hypothecation. 
  
 6.22 Legal Actions. If
any Legal Action is commenced against or affecting Borrower or the Venture or the assets of Borrower or the Venture, Borrower shall diligently and in good faith defend, or use commercially reasonable efforts to cause the Venture to defend, the same.

  
 6.23 Access to Books and Records.
Borrower shall give any representative of Lender access, upon reasonable prior notice and during business hours, to, and permit such representative to examine, copy or make excerpts from, its properties, books and records. Borrower will maintain a
system of accounting established and administered in accordance with sound business practices to permit preparation of financial statements in conformity with GAAP. Borrower shall keep and maintain, and shall use commercially reasonable efforts to
cause the Venture to keep and maintain, full and accurate accounts and records of its operations with respect to the Loan according to sound accounting practices for its type of business. In furtherance of the foregoing, Borrower represents to
Lender that it has authorized and does hereby authorize Development Manager to give Lender access to all such communications between Borrower and Development Manager, and Lender agrees that, during the term of the Development Management Agreement,
Lender shall be deemed to have notice of all information contained in such books and records. 
  
 6.24 Special Purpose Bankruptcy Remote Entity. Borrower and the Sole Member shall at all times be a Special Purpose Bankruptcy
Remote Entity. Borrower shall not directly or indirectly make any change, amendment, or modification to its respective organizational documents or otherwise take any action which would result in Borrower or the Sole Member not being a Special Remote
Bankruptcy Remote Entity. 
  
 6.25 Additional
Real Property Acquired by Borrower under the DDA. In the event Borrower intends to acquire Real Property from the CIC under the DDA, Borrower shall comply with each of the following terms and conditions: 
  
 6.25.1 Borrower shall provide Lender with a copy of any
written notice given to the CIC of Borrower’s intent to acquire additional Real Property under the DDA together with any documentation provided to or by Borrower in connection with the acquisition of such additional Real Property; 

 
 6.25.2 Borrowers shall execute and deliver to Lender a
Deed of Trust Amendment or a new Deed of Trust, if the previous Deed of Trust was previously fully reconveyed, which shall be in form and content substantially the same as the Deed of Trust recorded on the Closing Date other than the legal
description of the Property and any other additional provisions as Lender deems necessary in its reasonable discretion based upon its review of title to the added Real Property. 
  
 6.25.3 Borrower shall cooperate with Lender in causing the Title Company to issue such endorsements to the
existing Title Policy for the Deed of 

  

 -20- 

 
Trust as Lender deems necessary in order to add the additional Real Property to the estate insured thereunder or if a new Deed of Trust is recorded, a new
Title Policy in substantially the same form as the existing Title Policy. 
  
 6.25.4 Borrower shall furnish to Lender a title commitment issued by the Title Company for the additional Real Property together with copies of the exceptions referenced therein. 
  
 6.25.5 If requested by Lender, Borrowers shall deliver an
opinion from counsel to each Borrower concerning the due formation and authority of Borrower and the due execution and delivery and enforceability of the Deed of Trust Amendment or the new Deed of Trust, as the case may be, and any other Loan
Documents executed and delivered by Borrower in connection with the acquisition of any Real Property acquired by Borrower after the Closing Date. 
  
 6.25.6 Borrower shall deliver certificates of insurance evidencing that the policies of insurance required under Section 4 of the Deed of
Trust have been modified to cover the additional Real Property. 
  
 6.25.7 If requested by Lender, Borrower shall cause the Guarantor to reaffirm in writing its obligations under the Guaranty. 
  
 7. EVENTS OF DEFAULT AND REMEDIES. 
  
 7.1 Events of Default. The occurrence of any one or more of the following shall constitute an Event of Default under this
Agreement: 
  
 7.1.1 The failure by Borrower to
make a payment of money to Lender within ten (10) days after written demand from Lender that such amounts are past due under the Loan Documents; provided, however, no such written notice shall be required for any payment due under the Note and no
such written notice shall be required in any case where this Agreement or any other Loan Document requires the delivery of a separate written notice or demand for payment from Lender to Borrowers, in which case it shall be an Event of Default if the
Borrowers fail to make a payment of money to Lender within ten (10) days from the date such payment was due under the Note or any of the other Loan Documents. 
  

7.1.2 The failure by Borrower to (a) perform any obligation under the Loan Documents not involving the payment of money, or (b) comply
with any other term or condition applicable to Borrower under any of the Loan Documents, and the expiration of thirty (30) days after notice of such failure from Lender to Borrower, provided that if such failure cannot reasonably be cured within
such thirty (30) day period but is capable, with reasonable diligence, of being cured within a total of ninety (90) days, Borrower shall have an additional sixty (60) days in which to effect such cure provided that Borrower commence to cure such
failure within the initial thirty (30) day period, at all times diligently pursues the cure to completion, and in fact completes such cure within the subsequent sixty 

  

 -21- 

 
(60) day period; provided, however, that the cure periods provided by this Section 7.1.2 shall not apply to any such failures to perform or comply that are
described elsewhere in this Section 7.1. 
  
 7.1.3 Any representation or warranty by Borrower in any of the Loan Documents is incorrect or incomplete or otherwise misleading as of the date made or deemed made which would have a material impact on Lender’s security or
Borrower’s ability to perform under the Loan Documents, and, if such breach is reasonably susceptible of being cured, the expiration of thirty (30) days after notice of such breach from Lender to Borrower without the same being cured, provided
that if such breach cannot reasonably be cured within such thirty (30) day period but is capable, with reasonable diligence, of being cured within a total of ninety (90) days, Borrower shall have an additional sixty (60) days in which to effect such
cure provided that Borrower commence to cure such breach within the initial thirty (30) day period, at all times diligently pursues the cure to completion, and in fact completes such cure within the subsequent sixty (60) day period; provided,
however, that the cure periods provided by this Section 7.1.3 shall not apply to any such failures to perform or comply that are described elsewhere in this Section 7.1. 
  
 7.1.4 Any payment obligation or any other material term or condition of the Loan Documents shall, at any
time and for any reason, cease to be valid and binding on Borrower, except through Lender’s acts, or the validity or enforceability thereof shall be contested or denied in bad faith by Borrower. 
  
 7.1.5 Borrower (a) is unable, or admits in writing its
inability, to pay its monetary obligations as they become due, (b) makes a general assignment for the benefit of creditors, or (c) applies for, consents to or acquiesces in the appointment of a trustee, receiver or other custodian for itself or its
property, or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is appointed for Borrower or the property of Borrower (including the Project), and such appointment is not discharged within sixty (60)
days. 
  
 7.1.6 The commencement of any case
under the Bankruptcy Code or commencement of any other bankruptcy, arrangement, reorganization, receivership, custodianship or similar proceeding under any federal, state or foreign law by or against any Borrower, provided that if any such case or
other bankruptcy, arrangement, reorganization, receivership, custodianship or similar proceeding is commenced against Borrower, such case or other bankruptcy, arrangement, reorganization, receivership, custodianship or similar proceeding is not
dismissed within sixty (60) days after its commencement. 
  
 7.1.7 A final judgment or decree for monetary damages or a monetary fine or penalty (not subject to appeal or as to which the time for appeal has expired) is entered against Borrower by any Governmental Authority, and
such judgment, decree, fine or penalty is not paid and discharged or stayed within sixty (60) days after the entry thereof. 
  

 -22- 

 7.1.8 The dissolution or liquidation of Borrower other than the dissolution not sooner
than one (1) year after the sale of all of Alameda (Bayport) Assets. 
  
 7.1.9 The commencement of any action or proceeding that seeks as one of its remedies the dissolution or liquidation of Borrower other than the dissolution not sooner than one (1) year after the sale of all of the
Alameda (Bayport) Assets, if such action or proceeding is not dismissed within sixty (60) days after its commencement. 
  
 7.1.10 The assets of Borrower are attached, levied on or otherwise seized by legal process, and such attachment, levy or seizure is not
quashed, stayed or released within sixty (60) days of the date thereof. 
  
 7.1.11 The occurrence of any Transfer (as defined in the Deed of Trust) that is prohibited under Section 2(f) of the Deed of Trust or any Transfer (which, for purposes of this clause of this Section 7.1.11 relating to
the Venture Interest only, shall be as defined in the Venture Pledge Agreement) of the Venture Interest that is prohibited under the Venture Pledge Agreement if not cured (a) with respect to any mechanics lien or other involuntary lien as respects
the Real Property, within the time and pursuant to the requirements of Section 1(e) of the Deed of Trust, and (b) with respect to any other involuntary Transfer as respects the Real Property, within ten (10) Business Days of the occurrence thereof,
and (c) with respect to any voluntary Transfer as respects the Real Property and/or as respects the Venture Interest, immediately upon the occurrence of such a Transfer. 
  
 7.1.12 Borrower is in material default under the DDA, the DA, the Warmington Loan Documents (if and to the
extent Borrower has any obligation under the Warmington Loan Documents), the Shortfall Loan Documents or any other material Project Specific Agreement beyond any applicable notice and cure period set forth in the DDA, DA or other applicable Project
Specific Agreement and the expiration of ten (10) Business Days after notice thereof from Lender to Borrower without the same being cured, or such shorter period of time as may be necessary under the terms of the applicable agreement if the failure
to cure the same within such shorter period would result in the termination of such agreement or other loss or impairment of any material right or benefit accruing or owing to Borrower under the same. 
  
 7.1.13 Borrower fails to perform or observe the provisions
of Section 4 (relating to the maintenance of insurance) provided that if the reason Borrower does not maintain a particular form or type of insurance is that the insurer previously carrying such form or type of insurance for a Borrower ceases to
exist or otherwise becomes insolvent, such Borrower shall have five (5) Business Days to place such insurance with another insurer meeting the insurance requirements set forth in Section 4 hereof, or Sections 6 and 7 (relating to insurance and
condemnation proceeds). 
  

 -23- 

 7.1.14 Borrower fails to perform or observe the provisions of Section 6.2 and 6.4 hereof
(relating to the modification of certain agreements) and the expiration of ten (10) Business Days after notice thereof from Lender to Borrower without the same being cured. 
  
 7.1.15 The failure of Borrower to pay to Lender a Mandatory Principal Payment within three (3) Business Day
after the date such Borrower receives a Venture Payment. 
  
 7.1.16 A material default occurs under the Development Management Agreement by Borrower that is not cured within any applicable cure periods afforded Borrower thereunder and the expiration of ten (10) Business Days
after notice thereof from Lender to Borrower without the same being cured, or such shorter period of time as may be necessary under the terms of the Development Management Agreement if the failure to cure the same within such shorter period would
result in the termination of a Project Specific Agreement or other loss or impairment of any material right or benefit accruing or owing to Borrower as respects the Real Property (such as, for example, any Entitlement) or the Venture Interest.

  
 7.1.17 A material default occurs under the
Purchase and Sale Agreement by the “Buyer” (or any Borrower, as assignee of the “Buyer” thereunder) that is not cured within any applicable cure periods afforded the “Buyer” thereunder and the expiration of ten (10)
Business Days after notice thereof from Lender to Borrower without the same being cured, or such shorter period of time as may be necessary under the terms of the Purchase and Sale Agreement if the failure to cure the same within such shorter period
would result in the termination of a Project Specific Agreement or other loss or impairment of any material right or benefit accruing or owing to Borrower as respects the Real Property (such as, for example, any Entitlement) or the Venture Interest.

  
 7.1.18 An Event of Default occurs under the
CF Capital Loan Documents. 
  
 7.2
Remedies. 
  
 7.2.1 Notwithstanding
anything herein to the contrary, but subject to Section 11.15 below, while an Event of Default is continuing Lender shall have all rights and remedies provided under the Loan Documents, at law, in equity or otherwise, including the following:

  
 7.2.1.1 Lender may apply any of
Borrowers’ funds in its possession to the Outstanding Balance of the Loan; and 
  
 7.2.1.2 Lender may declare the Outstanding Balance of the Loan, with interest thereon, and all other sums secured by the Security
Documents, to be immediately due and payable. 
  

 -24- 

 7.2.2 Lender may cure any default by Borrower under the Project Specific Agreements, and
all sums expended by Lender for such purposes shall be deemed to have been disbursed to, and borrowed by, Borrower and shall be secured by the Security Documents. 
  
 7.2.3 Borrower appoints Lender, or an independent contractor selected by Lender, as its lawful
attorney-in-fact with full power of substitution, for the purposes of completing any construction work on a Property and performing Borrowers’ obligations thereunder in the name of Borrower or otherwise, and empowers such attorney-in-fact to do
all of the following (it being understood and agreed that such power of attorney shall be deemed to be a power coupled with an interest that cannot be revoked until Repayment): 
  
 7.2.3.1 To employ attorneys to defend against attempts to interfere with the exercise of power granted
hereby; 
  
 7.2.3.2 To pay, settle or compromise
all claims that are, or may become, liens against any of the Alameda (Bayport) Assets, or may be necessary or desirable to clear objections to, or encumbrances on, title of any of the Alameda (Bayport) Assets; 
  
 7.2.3.3 To employ watchmen and erect security fences to
protect the Real Property owned by Borrower from loss or damage; and 
  
 7.2.3.4 To take such action and require such performance as it deems necessary under any of the bonds or insurance policies to be furnished hereunder, to make settlements and compromises with the sureties or insurers
thereunder, and in connection therewith to execute instruments of release and satisfaction. Notwithstanding the foregoing or any provision in any Loan Document to the contrary, if and when Lender enters into any agreement or signs any document under
a power of attorney pursuant to any Loan Document for any Borrower, Lender shall not create any personal liability for Borrower beyond that which such Borrower is already subject. Lender will endeavor to provide notice of any document signed by
Lender under a power of attorney for Borrower provided that the failure to do so shall not constitute a default hereunder by Lender or otherwise impair Lender’s rights or remedies hereunder or under any of the other Loan Documents. 

 
 7.2.4 All remedies of Lender provided for in this
Agreement are cumulative and shall be in addition to all other rights and remedies available under the other Loan Documents or any other document or by law or equity, but subject to Section 11.15 below. No exercise by Lender of any right or remedy
shall in any way constitute a cure or waiver of an Event of Default, or invalidate any act done pursuant to any notice of default, or prejudice Lender in the exercise of any other right or remedy available to Lender. No failure by Lender to
exercise, and no delay in exercising, any right or remedy shall operate as a waiver 

  

 -25- 

 
or otherwise preclude enforcement of any of its rights and remedies; nor shall any single or partial exercise of any right or remedy preclude any further
exercise thereof or of any other right or remedy. Lender does not need to resort to any particular right or remedy before exercising or enforcing any other. 
  
 8. PARTIAL RECONVEYANCE AND RELEASE. Except as provided in this Section 8, the Real Property shall not be released from the liens of the Deed of
Trust and the Venture Interest shall not be released from the Venture Pledge Assignment until Repayment. 
  
 8.1 Contributions of Real Property to the Venture. At the request of Borrower in connection with a contribution of Real Property to
the Venture (“Contribution”), Lender shall execute and deliver (i) a reconveyance releasing that portion of the Real Property being contributed to the Venture by Borrower from the lien of the Deed of Trust securing such Real
Property which shall be recorded in the Official Records concurrently with the Contribution thereof and in connection with each Contribution the satisfaction of each of the following conditions: 
  
 8.1.1 The Real Property being released constitutes a legally
subdivided interest in real property, and sale thereof will not otherwise violate any applicable Legal Requirement; 
  
 8.1.2 Lender shall have received copies of all documentation executed by Borrower, Warmington and/or CIC concerning the contribution of
the Real Property to the Venture. 
  
 8.1.3
Borrower shall have paid all reasonable out of pocket costs, fees and expenses incurred or charged by Lender in connection with the release of the Real Property; 
  
 8.1.4 If less than all of the Real Property secured by the Deed of Trust is being released, Borrower will
execute and deliver to Lender in recordable form and on terms acceptable to Lender, an Amendment to the Deed of Trust to reflect, among other things, that the term “Property” as used in the Deed of Trust shall thereafter mean and refer to
the remaining portion of the Real Property which will be recorded immediately prior to the release. 
  
 8.1.5 If less than all of the Real Property secured by the Deed of Trust is being released, if requested by Lender, Borrower shall furnish
Lender an endorsement or endorsements updating the existing loan title policy, and revising the insured estate to exclude the released portion of the Real Property, in form satisfactory to Lender. The endorsements shall insure the Deed of Trust to
be a first and prior lien on the remaining Real Property subject only to the Permitted Exceptions and any other exceptions which may be approved by Lender, in its sole discretion; 
  
 8.1.6 If requested by Lender, Guarantor shall have reaffirmed in writing to Lender all of its obligations
under the Guaranty. 
  

 -26- 

 9. ASSIGNMENT OF BUYER’S RIGHTS UNDER THE PURCHASE AND SALE AGREEMENT. Borrower hereby
assigns, transfers and conveys to Lender, and grants to Lender a first lien security interest in, as security for the Loan, all of Borrower’s rights, title and interests in and to the Purchase and Sale Agreement relating to the Alameda
(Bayport) Assets. During the continuance of an Event of Default under the Loan Documents, Borrower shall not take any action or exercise any right under the Purchase Agreement relating to the Alameda (Bayport) Assets without Lender’s prior
written consent, which may be given or withheld in Lender’s sole and absolute discretion. Borrower shall perform and discharge in all material respects each and every obligation, covenant and agreement of Borrower under the Purchase and Sale
Agreement and shall do all acts that may be necessary to maintain, preserve and protect the Borrower’s rights thereunder. Borrower will not convey, assign, encumber or transfer, whether for purposes of security or otherwise, any of its rights
under the Purchase and Sale Agreement. 
  
 10. ASSIGNMENT OF
THE WARMINGTON LOAN DOCUMENTS AND THE SHORTFALL LOAN DOCUMENTS. 
  
 10.1 Note Collateral. As used herein, the term “Note Collateral” shall mean, collectively all of the Borrower’s right title and interest as lender under the Warmington Loan Documents and
the Shortfall Loan Documents, including without limitation the right to receive the Shortfall Note Payments and the Warmington Note Payments (sometimes collectively referred to as, the “Note Payments”), and any and all renewals and
extensions of any of the foregoing and any and all replacements or substitutions for any of the foregoing; and any and all proceeds of the foregoing. 
  
 10.2 Pledge and Assignment of, and Grant of Security Interest in, the Note Collateral. Borrower hereby deposits with Lender and
otherwise assigns, transfers and grants to Lender, and there is hereby created in favor of Lender a security interest under the California Uniform Commercial Code (“UCC”) in and to the Note Collateral as additional security for the
Loan. 
  
 10.3 Nature of Assignment.
Borrower agrees that Lender shall have sole and exclusive possession of the original Note Collateral, including the original Shortfall Note and Warmington Note, and that the assignment contained in this Section 10 constitutes a present and current
assignment of the Note Collateral and is effective upon the execution and delivery hereof. Payments under or with respect to the Note Collateral shall be made as follows: 
  
 10.3.1 Lender shall have the right, at any time, to notify the Note Obligors under the Note Collateral, of
the assignment of the Note Collateral to Lender hereunder and, at any time during the continuance of an Event of Default, to direct Borrower and Note Obligors to pay all Note Payments directly to Lender. 
  
 10.3.2 So long as an Event of Default is not continuing,
within one business day of receipt, Borrower shall pay to Lender Lender’s share of each and every Note Payment received by Borrower as and when required under the Note. All such payments received by Borrower during the continuance of an Event
of Default shall be immediately delivered to Lender, in the same form as received, 

  

 -27- 

 
with the addition only of such endorsements and assignments as may be necessary to transfer title to Lender, and pending such delivery, all such payments
shall be held in trust for Lender. All Note Payments received by Lender (other than during the continuance of an Event of Default) shall constitute Mandatory Principal Payments and applied to the Note in accordance with Section 3 of the Note.

  
 10.3.3 During the continuance of an Event of
Default, Borrower hereby agrees that it shall pay, and Borrower hereby authorizes and directs CIC to thereafter pay all Shortfall Note Payments and Warmington to pay all Warmington Note Payments directly to Lender, and any and all such Shorftall
Note Payments and Warmington Note Payments received by Borrower shall be promptly delivered to Lender in the same form as received, with the addition only of such endorsements and assignments as may be necessary to transfer title to Lender, and
pending such delivery, all such payments shall be held in trust for Lender and upon receipt by Lender shall be applied to the Indebtedness. 
  
 10.3.4 Borrower hereby irrevocably designates and appoints Lender, as its true and lawful attorney-in-fact, which appointment is coupled
with an interest, at any time during the continuance of an Event of Default, either in its name or otherwise, for the purpose of taking any or all of the following actions: to ask, demand, sue for, attach, levy, settle, compromise, collect, recover,
receive and give receipt for any and all of the Note Collateral and to take any and all actions as Lender may deem necessary or desirable in order to realize upon the Note Collateral, or any portion thereof, including the right and power to endorse,
in the name of Borrower, any checks, notes, drafts and other instruments received in payment of all or any portion of the Note Collateral; it being specifically understood and agreed, however, that Lender shall not be obligated in any manner
whatsoever to exercise any such power or authority or be in any way responsible for the collection of or realizing upon the Note Collateral, or any portion thereof. The foregoing appointment is irrevocable and shall continue, and any such rights,
powers and privileges shall be exclusive in Lender, until full repayment of the Loan. 
  
 10.4 Note Collateral. The originals of the Shortfall Note and Warmington Note, each duly endorsed by Borrower pursuant to an
allonge, in form and substance acceptable to Lender (“Allonges”), and the originals of the other Shortfall Loan Documents and the other Warmington Loan Documents, all have been delivered to Lender; provided, however, that so long as
there is no Event of Default existing, Lender shall return such originals to Borrower as necessary for Borrower to enforce the terms and conditions of the Shortfall Loan Documents and/or the Warmington Loan Documents as applicable and provided
further however that Borrower shall return such originals promptly after the completion of such enforcement actions. 
  
 10.5 Information About Collateral and Inspection of Books. Borrower shall keep at all times complete and accurate records of all
Shortfall Note Payments and the Warmington Note Payments received by Borrower and shall allow Lender upon 

  

 -28- 

 
reasonable notice to inspect, audit, check and make extracts from such records, and Lender shall have the right to make direct verification from CIC and/or
Warmington. Borrower shall, immediately upon request by Lender, execute and deliver to Lender a sworn affidavit setting forth in detail any and all Note Payments received by Borrower during any period specified by Lender. Borrower shall promptly
forward to Lender copies of all communications received by Borrower from CIC or Warmington or from any other party, or sent by Borrower, relating to the Note Collateral. In furtherance of the immediately preceding sentence, Borrower represents to
Lender that it has authorized and does hereby authorize Development Manager to give Lender access to all such communications and Lender agrees that, during the term of the Development Management Agreement, Lender shall be deemed to have notice of
all such communications. 
  
 10.6 Good
Title. Borrower is the sole, lawful and beneficial owner of the Note Collateral acquired from Seller and has the full and complete right, power and authority to create a security interest in the Note Collateral in favor of Lender, in accordance
with the terms and provisions of this Agreement. The security interest in the Note Collateral created hereunder constitutes and will at all times continue to constitute a valid and enforceable first priority perfected security interest in the Note
Collateral in favor of Lender, free and clear of all liens, claims, encumbrances and rights of others. Borrower has made no contract or arrangement of any kind or type whatsoever (whether oral or written, formal or informal), the performance of
which by the other party thereto could give rise to a lien on the Note Collateral or any portion thereof. 
  
 10.7 No Future Encumbrance or Transfer. Borrower shall not encumber, pledge, anticipate, borrow against, or create any right of
offset against the Note Collateral, and shall not transfer, assign, sell or convey all or any portion of the Note Collateral. 
  
 10.8 Consents. Borrower will deliver to Lender on the Closing Date the written consent of Warmington and CIC to the collateral
assignment to Lender of the Warmington Loan Documents and the Shortfall Loan Documents, respectively, in form and content acceptable to Lender. 
  
 10.9 Perfection of Security Interest. Borrower authorizes Lender to file any one or more financing statements in California and/or
in Delaware and to execute, acknowledge and deliver all such further assignments, security agreements, endorsements, and assurances as Lender may from time to time require for the better assuring, conveying, assigning and confirming to Lender of the
Note Collateral and the rights hereby conveyed or assigned or intended now or hereafter to be conveyed or assigned, and for carrying out the intention or facilitating the performance of the terms of the assignment contained herein. Upon the earlier
of the full payment of the Loan or the time required under the Warmington Loan Documents for the release of the Note Collateral, Lender will execute a release of the Note Collateral (as respects the Warmington Loan Documents), including a release of
any financing statements that may have been filed in California and/or in Delaware. In addition, upon the earlier of the full payment of the Loan or the time required under the Alameda Loan Documents for the 

  

 -29- 

 
release of the Note Collateral, Lender will execute a release of the Note Collateral (as respects the Alameda Loan Documents), including a release of any
financing statements that may have been filed in California and/or in Delaware and a reconveyance or release of the Collateral Assignment of Shortfall Deed of Trust. 
  
 10.10 Collateral; Compliance and Defense. Borrower shall comply in all material respects with all
obligations of Borrower as lender under the Shortfall Loan Documents and Warmington Loan Documents. Borrower, at its sole cost and expense, shall defend any claims against the Note Collateral or any action that might affect the Note Collateral or
any interest therein. 
  
 10.11 Protecting
Collateral. Borrower will diligently and in good faith do all things and take all actions, including bringing appropriate actions against the applicable note obligor that are necessary or desirable to enforce the obligations of such note obligor
to make the Shortfall Note Payments and the Warmington Note Payments, as applicable, and to protect and preserve the interest of Lender, under the assignment contained herein. 
  
 10.12 Notices. Borrower shall promptly deliver to Lender copies of any notice received or given by
either CIC or Warmington. Borrower shall notify Lender immediately upon its receipt of any notice from either Warmington or CIC of its intention to make a Shortfall Note Payment or a Warmington Note Payment. 
  
 10.13 Action by Lender. During the continuance of an
Event of Default: 
  
 10.13.1 Lender may take
such action as Lender may deem reasonably necessary to protect the Note Collateral or its security interest therein, Lender being hereby authorized to pay, purchase, contest and compromise any encumbrance, charge or lien that in the sole and
absolute judgment of Lender appears to be prior or superior to its security interest, and in exercising any such powers and authority to pay necessary expenses, employ counsel and pay attorney’s fees. 
  
 10.13.2 Lender may, in its sole and absolute discretion,
make advances to protect the Note Collateral and its security therein, and any such advances made by Lender shall be deemed advances under the Loan Documents, increasing the indebtedness under the Loan. 
  
 10.13.3 To ask for, demand, sue for, collect, compound,
receive, receipt for and give acquittances for any and all Note Payments; to endorse, in the name of Borrower or otherwise, all checks, notes, drabs, money orders, evidences of payment, or other instruments received in payment of, or on account of,
the Note Collateral or any portion thereof; and to take any and all actions as Lender may reasonably deem necessary or desirable in order to preserve, process, develop, maintain and protect the Note Collateral and the value thereof and Lender’s
interest therein for the benefit of Lenders, to realize upon the Collateral, or any portion thereof, including making any statements and doing or taking any acts on behalf of Borrower that are otherwise required of Borrower under the 

  

 -30- 

 
terms of the Note Collateral or any portion thereof as conditions precedent to the payment of the obligations evidenced by, or to the exercise of, the
Collateral or any portion thereof; and to exercise any right and remedies available under the Warmington Loan Documents or the Shortfall Loan Documents, either in the name of Borrower or otherwise, and to execute any document or instrument that
Lender may deem necessary or desirable in connection therewith, including pleadings, consent orders, stipulations, and other documents and instruments that Lender may deem necessary or desirable in connection with judicial or non judicial
foreclosure of the Shortfall Deed of Trust or of the Shortfall Membership Pledge, other legal actions or proceedings with respect to the Note Collateral; 
  
 10.13.4 To endorse and transfer the Note Collateral upon foreclosure; provided, however, that Lender shall be under no obligation
whatsoever to take any of the foregoing actions or to exercise any of the foregoing authority or power, and Lender shall have no liability or responsibility for any act or omission taken with respect thereto. Lender may exercise all of such rights
and powers at any time during the continuance of an Event of Default, whether or not Lender has previously exercised its right to foreclose its security interest in the Note Collateral. The foregoing appointment of Lender as CIC’s
attorney-in-fact is coupled with an interest and cannot be revoked by insolvency, reorganization, merger, consolidation or otherwise. 
  
 10.14 No Duty to Act. Lender shall be under no duty or obligation (i) to preserve, process, develop, maintain or protect the Note
Collateral or any of Borrower’s rights or interests therein, or (ii) to make or give any notices of default, presentments, demands for performance, notices of non-performance or dishonor, protests, notices of protests or notices of any other
nature whatsoever in connection with the Note Collateral on behalf of Borrower or any other Person having any interest therein; and Lender does not assume and shall not be obligated to perform the obligations of Borrower, if any, with respect to the
Note Collateral. 
  
 10.15 Enforcement
Rights. Borrower acknowledges and agrees that during the continuance of an Event of Default, and whether or not Lender, is the absolute owner of the Note Collateral, Lender shall have the right, but not the obligation, to exercise and enforce,
in its name or otherwise, any or all rights and remedies of Borrower under the Warmington Loan Documents and the Shortfall Loan Documents to the exclusion of Borrower, including the right to inspect the Real Property, to receive information and
documents, to declare due the Shortfall Note and the Warmington Note as and when provided under the Shortfall Loan Documents and the Warmington Loan Documents, to grant or withhold approvals, and to exercise discretion with respect to any matter as
and when provided under the Warmington Loan Documents and the Shortfall Loan Documents. During the continuance of an Event of Default, Borrower shall not exercise or attempt to exercise any such right or remedy except with the written consent of
Lender (which may be given or withheld in Lender’s sole and absolute discretion) and only in strict accordance with the instructions of Lender, and, if Lender so requires, the Shortfall Loan Documents and/or the Warmington Loan Documents may be
reassigned to Borrower for such purpose. If Lender shall reassign the Shortfall Loan Documents or the 

  

 -31- 

 
Warmington Loan Documents to Borrower for the purpose of permitting the exercise by Borrower of the right of foreclosure or power of sale thereunder, or the
exercise of other rights and remedies thereunder, such reassignment shall be in such form and substance as shall be acceptable to Lender in its sole and absolute discretion. During the continuance of an Event of Default, Lender may, at its option,
enforce or conduct any action for foreclosure under the Shortfall Loan Documents or the Warmington Loan Documents in its name or otherwise, and Borrower specifically consents to any foreclosure (including non judicial foreclosure) under any or all
of the Shortfall Loan Documents and/or the Warmington Loan Documents or any other action taken by Lender even though such action may release CIC or Warmington or any other obligor under the Collateral from personal liability with respect to any of
the Shortfall Loan Documents or Warmington Loan Documents. Upon the exercise by Lender of any such remedies, any amount bid by Lender at any sale of the Real Property owned by CIC or any of the other collateral for the Shortfall Note or any sale of
the interest of Warmington in the Venture or any of the other collateral for the Warmington Note may, at the option of Lender, be deemed to be a credit bid by Lender of the indebtedness evidenced by the Shortfall Note or the Warmington Note, as
applicable or either or both of them, and the indebtedness evidenced by the Loan; Lender shall be entitled to setoff the amount of any such bid against any such indebtedness, all at the election of Lender, in its sole and absolute discretion; and
any or all proceeds of the Warmington Note or the Shortfall Note may be applied against the indebtedness evidenced by the Loan in such order as Lender shall elect in its sole and absolute discretion, and Lender shall hold any property obtained by
Lender at any such sale free and clear of any interest or claims of Borrower, regardless of whether Lender shall have exercised any remedy under this Agreement with respect to any of the Shortfall Loan Documents or Warmington Loan Documents, or
shall have sold any of the Shortfall Loan Documents or Warmington Loan Documents or obtained absolute title thereto pursuant to its rights and remedies under the California Commercial Code or otherwise. Notwithstanding the foregoing, in the event
Lender shall become the owner of any property securing the Shortfall Note or the Warmington Note at any such sale, any amount bid by Lender, on behalf of Lenders, at any such sale shall be credited against the Indebtedness; and nothing contained
herein shall be deemed to be a waiver by Borrower of any interest it may have under applicable law to any excess proceeds of any such sale. 
  
 10.16 Note Collateral Remedies. Upon the occurrence of an Event of Default, Lender shall have, in addition to all other rights and
remedies that Lender may have under this Section 10, at law, in equity or otherwise, all of the rights and remedies hereinafter set forth, and Lender may exercise without further notice to Borrower any one or more or all of such remedies without
thereby waiving any of the others: 
  
 10.16.1
Lender shall have the right immediately to exercise all of its rights and remedies provided under the Warmington Loan Documents and the Shortfall Loan Documents. 
  
 10.16.2 Lender shall have the right to notify CIC and Warmington that all Note Payments are to be made
directly and exclusively to Lender; to collect and to continue to collect all Note Payments on the Note Collateral; to 

  

 -32- 

 
renew, extend, accelerate, accept partial payments on, make allowances and adjustments and issue credits with respect to, release, settle, compound, collect
or otherwise liquidate, on terms acceptable to Lender, in whole or in part, the Note Collateral and any amounts owing thereon or any guaranty or security therefor; to enter into any other agreement relating to or affecting the Note Collateral; to
give all consents, waivers and ratifications in respect of the Note Collateral and exercise all other rights, powers and remedies and otherwise act with respect thereto as if it were the owner thereof; and to enforce payments and prosecute any
action or proceeding with respect to any and all of the Note Collateral and take or bring, in its name or otherwise, all steps, actions, suits or proceedings deemed by Lender necessary or desirable to affect collection of or to realize upon the Note
Collateral. 
  
 10.16.3 Lender shall have all of
the rights and remedies of a secured party under the California Commercial Code as in effect at that time, including the right to take possession of the Note Collateral, and to sell or otherwise dispose of the same. 
  
 10.16.4 Lender shall have the right to foreclose the liens
and security interests created under this Section 10 or under any other agreement relating to the Note Collateral by any available judicial procedure or without judicial process; and to sell, assign, lease or otherwise dispose of the Note Collateral
or any part thereof, either at public or private sale, in lots or in bulk, for cash, on credit or for future delivery, or otherwise, with or without representations or warranties, and upon such terms as shall be acceptable to Lender in its sole and
absolute discretion. 
  
 10.17 Application of
Net Proceeds. The net cash proceeds resulting from the collection, liquidation, sale, lease or other disposition of the Note Collateral shall be applied to the payment and satisfaction of the Indebtedness in such order as Lender, in its sole and
absolute discretion, may elect. 
  
 10.18 No
Modifications or Settlements Without Lender’s Consent. Borrower shall not, without Lender’s written consent (which shall not be unreasonably withheld, conditioned or delayed, except as to the following clauses (i) and (iii) which may
be given or withheld by Lender in its sole and absolute discretion): (i) settle or compromise any payment due under the Warmington Loan Documents and/or the Shortfall Loan Documents; (ii) materially amend, modify, supplement or otherwise alter the
Warmington Loan Documents and/or the Shortfall Loan Documents; (iii) cancel or terminate the Warmington Loan Documents and/or the Shortfall Loan Documents; or (iv) waive or forgive any obligation under the Warmington Loan Documents and/or the
Shortfall Loan Documents. 
  
 11. MISCELLANEOUS.

  
 11.1 Sale of Loan and Loan
Participations. 
  

 -33- 

 11.1.1 Lender may, at its cost and expense, sell participations to one or more Persons in
all or a portion of the Loan not to exceed a 50% interest in the Loan. In the event of a secondary market transaction or any other sale or transfer of all or a participation interest in Lender’s interest in the Loan, Borrower and Guarantor
shall be entitled to deal with and rely upon only Lender as servicer of the Loan or as administrative agent on behalf of all such participants of the Loan in connection with all matters relating to the Loan and shall not incur any costs greater
those if the lead lender were the only lender (including enforcement costs). Any such transaction shall be at Lender’s sole cost and expense, including without limitation, the cost of any reports, certifications or opinions required of Borrower
or Guarantor in connection with any such transaction provided that in no event shall any Borrower be liable (by way of certification or otherwise) for information or statements contained in third party reports used in secondary marketing
transactions. No such transaction shall result in a material increase in the obligations or liability of Borrower or Guarantor under the Loan Documents by reason of any requested covenant, representation, warranty, indemnity or certification or
otherwise. 
  
 11.1.2 So long as there is no
Event of Default existing under the Loan Documents, Borrower shall have the right to prepay the Loan in full in accordance with the terms set forth herein, if Lender desires to sell the Loan to a third party that is unrelated to Lender
(“Unrelated Loan Purchaser”) and that is not occurring in connection with a Change in Control in which case Borrower will have the right to prepay the Loan pursuant to the provisions of Section 3 of the Note (hereinafter, a
“Loan Sale”). If Lender desires to consummate a Loan Sale, then Lender shall give written notice of such intention to Borrower (“Proposed Loan Sale Notice”), which Proposed Loan Sale Notice shall set forth the
purchase price (“Purchase Price”) payable for the Loan by the Unrelated Loan Purchaser. Once a Proposed Loan Sale Notice has been delivered to Borrower, Lender may not proceed with a Loan Sale until Borrower has been given the right
to repay the Loan in full on the terms set forth in this Section 10.2. Borrower shall have five (5) business days after receiving the Proposed Loan Sale Notice to exercise the right to repay the Loan by giving written notice (“Exercise
Notice”) thereof to Lender within such 5 business day period. If Borrower timely gives the Exercise Notice, then Borrower shall have until 5:00 p.m. on the 30th day after the date Lender receives the Exercise Notice to prepay the Loan in
full by paying to Lender in cash or other readily available funds an amount equal to the Purchase Price set forth in the Proposed Loan Sale Notice. If Buyer fails to timely give the Exercise Notice, or if Borrower affirmatively declines in writing
the opportunity to payoff the Loan, or if Borrower fails to repay the Loan in full within the time and manner herein provided, then Borrower shall be deemed to have declined the right to payoff the Loan and Lender shall thereafter have the right for
a period of one hundred eighty (180) days to consummate the Loan Sale for a purchase price that is no less than 97% of the Purchase Price set forth in the Proposed Loan Sale Notice, after which time Borrowers’ rights under this Section 11.1.2
will apply again to any proposed sale of the Loan. 
  

 -34- 

 11.2 Notices. Any notice, request, direction, demand, consent, waiver, approval or
other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, (c) by facsimile, or (d) by
a commercial overnight courier that guarantees next day delivery and provides a receipt, and addressed to the parties at the addresses stated below, or at such other address as either party may hereafter notify the other in writing as
aforementioned: 
  

			
	 If to Borrower:
	  	c/o FARALLON CAPITAL MANAGEMENT, L.L.C.
	 	  	One Maritime Plaza, Suite 1325
	 	  	San Francisco, California 94111
	 	  	Attention: Seth Hamalian
	 	  	                   Richard B. Fried
		
	 	  	Facsimile No.: (415) 956-8852
		
	 With a copy to:
	  	Pircher, Nichols & Meeks
	 	  	1925 Century Park East, Suite 1700
	 	  	Los Angeles, California 90067
	 	  	Attention: Real Estate Notices (MES/903297-1)
		
	 	  	Facsimile No.: (310) 201-8922
		
	 If to Lender:
	  	Catellus Finance Company, LLC
	 	  	201 Mission Street, 2nd Floor
	 	  	San Francisco, CA 94105-1832
	 	  	Attention: Legal Department
		
	 	  	Facsimile No.: (415) 974-4651

  
 Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery (whether accepted or refused) as evidenced by confirmed answerback if by facsimile (provided that if any notice or other
communication to be delivered by facsimile is unable to be transmitted because of a problem affecting the receiving party’s facsimile machine, the deadline for receiving such notice or other communication shall be extended through the next
Business Day), as shown by the addressee’s return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a
non-Business Day, then such notice or demand so made shall be deemed effective on the first Business Day immediately following the day of actual delivery. Except as provided herein to the contrary, no communications via electronic mail shall be
effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. 
  
 11.3 Indemnification. To the fullest extent permitted by law, and in addition to Borrowers’ other obligations hereunder, at
law, in equity or otherwise, Borrowers agree to protect, indemnify, defend and hold Indemnitees harmless from and against any Legal Action (including reasonable attorney’s fees and expenses in connection therewith), 

  

 -35- 

 
liability, loss, out of pocket cost, expense or damage of any kind or nature that Indemnitees may incur or that may be brought or claimed against Indemnitees
(collectively, “Losses”) in connection with (a) any breach by Borrowers or Guarantor of any material representation, warranty or covenant made in the Loan Documents or in any of the materials prepared by or on behalf of Borrowers or
Guarantor; (b) any aspect of the Project, including the condition, occupancy/possession, use, management, planning, design, acquisition, sale, leasing, installation, maintenance, repair or construction of the Project; (c) the use of the proceeds of
the Loan; (d) any lawful action that may be taken by Lender in connection with the enforcement of the provisions of the Loan Documents (including this Section 9.4), whether or not a Legal Action is brought by Indemnitees in connection with the same,
or in connection with Borrower or Guarantor and/or any direct or indirect Constituent Owner thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding; (e) any lawful action that may be taken
by Lender in connection with Borrower, Guarantor and/or any member or shareholder thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding, whether or not a Legal Action is brought by
Indemnitees in connection with the same; or (f) the transactions contemplated by the Loan Documents (other than Lender’s failure to comply with any Legal Requirement that is applicable to the operation of Lender’s internal business
affairs, including Lender’s failure to pay any fee for any license required to operate Lender’s business or Lender’s failure to pay its own income taxes). Notwithstanding the foregoing, it is the intent of Borrower and Indemnitees
that Borrower shall be liable to indemnify Indemnitees under this Section 9.4 irrespective of the cause of such indemnification liability (i.e., regardless of whether or not caused by any act, omission, willful misconduct or negligent conduct
(whether active or passive) of Borrower, or otherwise), except to the extent the cause of such indemnification liability is the gross negligence or willful misconduct of Indemnitees. Borrower further covenants and agrees, to the fullest extent
permitted by law, to pay or reimburse Indemnitees for all reasonable out of pocket costs, fees or expenses incurred by Indemnitees in connection with investigating or defending any of the matters that Borrowers are required under this Section 11.3
to indemnify Indemnitees from or against. Upon being notified of or served in connection with any Legal Action that Indemnitees believe is covered under this Section 11.3, Indemnitees shall give Borrowers notice of such Legal Action and an
opportunity to defend the same, at Borrower’s cost and expense, with legal counsel reasonably satisfactory to Indemnitees. Indemnitees may also, in their sole and absolute discretion, require Borrower to defend, at Borrower’s cost and
expense and with legal counsel reasonably satisfactory to Indemnitees, any such Legal Action. Borrower shall not settle or otherwise compromise any matter that Borrower is required under this Section to indemnify Indemnitees from or against
Indemnitees without the prior approval thereof by Indemnitees, which approval shall not be unreasonably withheld or delayed. The obligations of Borrowers under this Section shall survive Repayment and the surrender of the Note, release of the
Venture Pledge Agreement, and reconveyance of the Deed of Trust for a period of one (1) year, except as to claims made by Indemnitees under, in connection with or pursuant this Section prior thereto, and the foreclosure of the Venture Pledge
Agreement and/or the Deed of Trust and the extinguishment of the Deed of Trust by any means, including deed or assignment in lieu of foreclosure for a period of three (3) years, except as to claims 

  

 -36- 

 
made by Indemnitees under, in connection with or pursuant this Section prior thereto. Notwithstanding anything to the contrary contained herein, the
foregoing indemnity shall not apply to any Losses for which Sellers are liable under the Purchase and Sale Agreement or under any closing document executed by Sellers thereunder (or for which Sellers would be liable but for the expiration of any
survival period contained in the Purchase and Sale Agreement), or for which Development Manager is liable under the Development Management Agreement (or would be liable but for the expiration of any survival period contained in the Development
Management Agreement). 
  
 11.4 Brokers.
Borrower and Lender represent to the other that it does not know of any brokerage commissions or finders’ fees due or claimed with respect to the transaction contemplated hereby. Borrower and Lender shall indemnify and hold harmless the other
from and against all loss, damage, liability and expense, including costs and attorneys’ fees, that the other may incur or sustain by reason of or in connection with any misrepresentation by the indemnifying party with respect to the foregoing.

  
 11.5 Change, Discharge, Termination or
Waiver. No provision of this Agreement may be changed, discharged, terminated or waived except in writing signed by the party against whom enforcement of the change, discharge, termination or waiver is sought. No failure by Lender to exercise
and no delay by Lender in exercising any right or remedy under the Loan Documents or under the law or in equity shall operate as a waiver thereof. 
  
 11.6 Waiver. No previous waiver and no failure or delay by Lender in acting with respect to the provisions of this Agreement shall
constitute a waiver of any breach, default or failure of a condition under this Agreement. A waiver of any provision of this Agreement must be made in writing by Lender and shall be limited to the written terms of such waiver. 
  
 11.7 Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one agreement. 
  
 11.8 Lender’s Costs and Fees. Borrower shall promptly pay all reasonable Costs (defined below) incurred by Lender in
connection with the modification, workout, collection or enforcement of the Loan or any of the Loan Documents and all such Costs shall be included as additional Indebtedness bearing interest at the Default Rate until paid. For the purposes hereof
“Costs” means all out of pocket expenditures and expenses which may be paid or incurred by or on behalf of Lender including without limitation, repair costs, payments to remove or protect against liens, reasonable attorneys’
fees, experts’ fees, receivers’ fees, engineers’ fees, accountants’ fees, independent consultants’ fees (including environmental consultants), all costs and expenses incurred in connection with any of the foregoing,
Lender’s out-of-pocket costs and expenses related to any audit or inspection of the Real Property or Venture Interest, outlays for documentary and expert evidence, stenographers’ charges, stamp taxes, publication costs, and costs (which
may be estimates as to items to be expended after entry of an order or judgment) for procuring all such abstracts of title, title and UCC searches, and examination, title 

  

 -37- 

 
insurance policies, and similar data and assurances with respect to title as Lender may deem reasonably necessary either to prosecute any action or to
provide evidence to bidders at any foreclosure sale of the true condition of the title to, or the value of, the Venture Interest or the Real Property, and reasonable attorneys’ fees and costs, incurred or expended by Trustee or Lender arising
out of or in connection with any action, proceeding or hearing, legal, equitable or quasi-legal, including the preparation therefore and any appeal therefrom, in any way affecting or pertaining to the Loan Documents, the Venture Interest or the Real
Property. Without limiting the foregoing provisions of this Section 10.9, in the event Lender or Borrowers bring an action against the other party (other than under or pursuant to any one of the Loan Documents or the Environmental Indemnity), the
prevailing party in such action shall be entitled to recover reasonable attorneys’ fees and costs in such tort action. 
  
 11.9 Reinstatement. Notwithstanding anything herein to the contrary, Lender’s rights hereunder shall be reinstated and
revived, and the enforceability of the Loan Documents shall continue, with respect to any amount at any time paid on account of the Loan that thereafter shall be required to be restored or returned by Lender, including the restoration or return of
any amount pursuant to a court order or judgment (whether or not final or non-appealable), or pursuant to a reasonable, good faith settlement of a pending or threatened avoidance or recovery action, or pursuant to reasonable, good faith compliance
with a demand made by a Person believed to be entitled to pursue an avoidance or recovery action such as a bankruptcy trustee or a Person having the avoiding powers of a bankruptcy trustee or similar avoiding powers (and without requiring Lender to
oppose or litigate avoidance or recovery demands or actions that Lender believes in good faith to be meritorious or worthy of settlement or compliance, or pursue or exhaust appeals), all as though such amount had not been paid. The rights of Lender
created or granted herein and the enforceability of the Loan Documents at all times shall remain effective to cover the full amount of the Loan even though the Loan, including any part thereof or any other security or guaranty therefor, may be or
hereafter may become invalid or otherwise unenforceable as against any other Person and whether or not any other Person shall have any personal liability with respect thereto. 
  
 11.10 Jury Waiver. Borrower and Lender voluntarily, knowingly, irrevocably and unconditionally waives
any right to have a jury participate in resolving any dispute (whether based on contract, tort or otherwise) between the parties hereto arising out of, or in any way related to, this Agreement. 
  
 11.11 Integration. This Agreement, together with the
other Loan Documents, constitutes the entire agreement of the parties to the Loan Documents with respect to the subject matter hereof and thereof, and supersedes, in all respects, all other communications between or among such parties, whether oral
or written. 
  
 11.12 Modifications. This
Agreement may not be modified except by a writing signed by the parties hereto. 
  
 11.13 Independent Effect. All covenants herein shall be given independent effect so that if a particular action or condition is not
permitted by any one of such 

  

 -38- 

 
covenants, the fact that it would be permitted by an exception to, or otherwise be within the limitations of, another covenant, shall not avoid the
occurrence of an Event of Default or Potential Default if such action is taken or condition exists. 
  
 11.14 Relationship of Lender and Borrowers. The relationship between Lenders and Borrower shall be that of creditor-debtor only. No
term in this Agreement or in the other Loan Documents or in the Purchase and Sale Agreement or the Development Management Agreement, and no course of dealing between the parties, shall be deemed to create any relationship of agency, partnership or
joint venture or any fiduciary duty by Lender to any other party. No default by the Development Manager under the Development Management Agreement or by a Seller under the Purchase and Sale Agreement shall be deemed or construed to constitute a
default under this Agreement or the other Loan Documents, to create a defense to the performance of Borrower’s obligations hereunder or under the other Loan Documents, or to otherwise affect, impair, delay or alter in any way Lender’s
rights and remedies under the Loan Documents. Borrower acknowledges and agrees that none of the rights or obligations of the parties hereunder or under the Loan Documents shall be affected, impaired, delayed or altered in any way by the fact that
Sellers and Development Manager are affiliated with Lender. 
  
 11.15 Non-Recourse Loan. The provisions of Section 11 of the Note (Non-Recourse Liability; Recourse Carve-Outs) are hereby incorporated herein by this reference. 
  
 12. EXHIBITS. The following exhibits are attached hereto: 

 

			
	 Exhibit A
	  	Legal Description of Real Property
	 Exhibit B
	  	Closing Conditions
	 Exhibit C
	  	Single Purpose Entity

  
 [signatures follow
on next page] 
  

 -39- 

  
 IN WITNESS WHEREOF, Borrower
and Lender have caused this Loan Agreement (Alameda –Bayport) to be duly executed and delivered as of the date first set forth above. 
  

															
	 “BORROWER”
	 	 	 	 FOCIL-BP, LLC,
 a Delaware limited liability company

					
	 	 	 	 	 	 	By:	 	 Farallon Capital Management, L.L.C.
 a
Delaware limited liability company,
 Its Manager

							
	 	 	 	 	 	 	 	 	 	 	By:	 	 /s/ Richard B. Fried

	 	 	 	 	 	 	 	 	 	 	 	 	Name:	 	Richard B. Fried
	 	 	 	 	 	 	 	 	 	 	 	 	 Title:
	 	Managing Member

  

															
	 “LENDER”
	 	 	 	 CATELLUS FINANCE COMPANY, LLC,
 a Delaware limited liability company

					
	 	 	 	 	 	 	 By:
	 	 /s/ Ted Antenucci

	 	 	 	 	 	 	 	 	 Name:
	 	 Ted Antenucci

	 	 	 	 	 	 	 	 	 Title:
	 	 President

  

 -40- 

  
 EXHIBIT A

  
 LEGAL DESCRIPTION OF REAL PROPERTY

  
 Legal Description 
 Alameda (Bayport) 
 NCS-121096 
  
 Real property in the City of Alameda, County of Alameda, State of California, described as
follows: 
  
 PARCEL ONE: 
  
 Lots 1 through 7, inclusive, and Lots E, F, G and TT, Tract 7387, filed June 24, 2003, in Map
Book 271, pages 1 through 34, inclusive, Alameda County Records. 
  
 PARCEL TWO:

  
 Easements for ingress, egress and utilities reserved for the benefit of Lots 1
through 7 inclusive, and Lots E, F, G and TT, Tract 7387 in that certain Grant Deed from the Community Improvement Commission of the City of Alameda, recorded June 26, 2003, as Series No. 2003372954. 
  
 APN: 074-1353-005, 006, 007, 015 through 022 
  

					
	 	 	EXHIBIT B	  	 
	 	 	-1-	  	 

 Legal Description 
 Alameda
(Bayport) 
 NCS-121095 
  
 Real property in the City of Alameda, County of Alameda, State of California, described as follows: 
  
 Lots 8 through 46, inclusive, and Lettered Lots A (Glenview Street), B (Kinkaid Square),C, D (Bryant Avenue), H (Hatfield Lane), I
(Hollister Avenue), J (Emeric Lane), K, L (Emeric Lane), M, and AA (Pelican Court), Tract 7387, filed June 24, 2003, Map Book 271, Pages 1 to 34, inclusive, Alameda County Records. 
  
 APN: 074-1353-001 
  

					
	 	 	EXHIBIT B	  	 
	 	 	-2-	  	 

 Legal Description 
 Alameda
(Bayport) 
 NCS-125049 
  
 Real property in the City of Alameda, County of Alameda, State of California, described as follows: 
  
 Lots 1 through 30, inclusive, Lots 51 through 155, inclusive, and Lots A, B (Dunlin Lane), C (Ansel Avenue), D (Hamilton Lane), E (Lina
Avenue), F (Percy Lane), G (Oceana Street), H (Dunlin Lane), I (Ansel Avenue), J (Tucker Avenue), K (Teal Lane), L, M (Santa Rosa Lane), N (Lina Avenue), O (Jouett Square), P (Cotati Lane), Y (Tucker Avenue), Z (Greenwald Lane), AA (Haile Street),
BB (Roth Lane), and those areas shown as Coral Sea Street, Mosley Avenue and Robert Louis Stevenson Avenue, Tract 7511, filed July 9, 2004, in Map Book 277, pages 1 through 19, inclusive, Alameda County Records. 
  
 A.P.N. 074-0905-042 (Portion) 
  

					
	 	 	EXHIBIT B	  	 
	 	 	-3-	  	 

  
 EXHIBIT B

  
 CLOSING CONDITIONS 
  
 Notwithstanding anything to the contrary contained herein, if the Closing
occurs, the Closing Conditions described in this Exhibit B shall be deemed satisfied or waived by Lender, the obligation of Lender to make the Loan is conditioned upon Lender’s approval of each of the following items and/or the satisfaction by
Borrower of each of the following conditions: 
  
 Title
Documents. All documents that will be listed as exceptions to the coverage of the Title Policy and all other matters of public record or known to each Borrower that affect the Property each Borrower is acquiring. 
  
 Title Insurance and Endorsements. The Title Policy will show as
exceptions only those exceptions that are reflected on the Owner’s Policy of Title Insurance obtained by Borrower at the Closing and the Title Policy will include the same endorsements that Borrower obtains in its Owner’s Policy (and such
other endorsements as Lender may require in its closing instruction letter to the Title Company). 
  
 Insurance. Certificates of insurance or, if required by Lender, certified policies, evidencing that the policies of insurance required under
Section 7 are in full force and effect (together with proof of the payment of the premiums thereof). 
  
 Opinion Letters. An opinion from counsel to each Borrower that relates to such matters as Lender and/or its counsel may request, including without
limitation due formation, due authorization, due execution and delivery and enforceability of the Loan Documents against Borrower; and such other opinions as Lender may require. 
  
 Borrower Organization and Authority Documents. 
  
 The limited liability company agreement/operating agreement of Borrower, duly certified by Farallon Capital
Management, L.L.C., a Delaware limited liability company (“Farallon”), to be correct and complete in all respects; 
  
 The articles of organization/certificate of formation of Borrower filed with, and certified by, the Delaware Secretary of State;

  
 The Limited Liability Company Application for
Registration of Borrower filed with, and certified by, the California Secretary of State; 
  
 A Certificate of Registration of Borrower issued by the California Secretary of State; 
  

					
	 	 	EXHIBIT B	  	 
	 	 	-1-	  	 

 A Certificate of Status Foreign Limited Liability Company for Borrower issued by the
California Secretary of State; 
  
 A certificate
issued by the Delaware Secretary of State certifying that Borrower is a limited liability company in good standing under the laws of the State of Delaware; 
  
 Resolution duly adopted by the Manager of Borrower, authorizing Borrower’s execution of the Loan Documents to which Borrower is a
signatory and the consummation of the transactions contemplated thereby. 
  
 Sole Member’s/Guarantor’s Organization and Authority Documents. 
  
 The limited liability company agreement of the Sole Member of Borrower, duly certified by Farallon, to be correct and complete in all
respects; 
  
 The articles of
organization/certificate of formation of the Sole Member of Borrower, filed with, and certified by, the Delaware Secretary of State; 
  
 A certificate issued by the Delaware Secretary of State certifying that Sole Member is a limited liability company in good standing under
the laws of the State of Delaware; 
  
 The
Limited Liability Company Application for Registration of Sole Member filed with, and certified by, the California Secretary of State; 
  
 A Certificate of Registration of Sole Member issued by the California Secretary of State; 
  
 A Certificate of Status Foreign Limited Liability Company
for Sole Member issued by the California Secretary of State; 
  
 Resolutions duly adopted by the members and/or manager of the Sole Member, authorizing the Sole Member’s execution of the Loan Documents to which it is a signatory and the consummation of the transactions
contemplated thereby. 
  
 Farallon’s Organizational and
Authority Documents 
  
 The redacted limited
liability company agreement of Farallon, duly certified by Farallon, to be correct and complete in all respects; 
  
 The articles of organization/certificate of formation of Farallon, filed with, and certified by, the Delaware Secretary of State;

  
 A certificate issued by the Delaware
Secretary of State certifying that Farallon is a limited liability company in good standing under the laws of the State of Delaware; 
  
 The Limited Liability Company Application for Registration of Farallon filed with, and certified by, the California Secretary of State;

  

					
	 	 	EXHIBIT B	  	 
	 	 	-2-	  	 

 A Certificate of Registration of Farallon issued by the California Secretary of State;

  
 A Certificate of Status Foreign Limited
Liability Company for Farallon issued by the California Secretary of State; 
  
 Resolutions duly adopted by the Managing Members of Farallon, authorizing Farallon, in its capacity as the sole manager of the Borrower and the sole manager of the Sole Member/Guarantor, to execute the Loan Documents
to which Borrower and/or Guarantor is/are a signatory and to consummate the transactions contemplated thereby. 
  
 Other Organizational Documents. Lender reserves the right to review additional organizational and authority documents for the other constituent
owners of Borrower based on the Lender’s review of the Borrower and Sole Member and Guarantor organizational documents. 
  
 Bankruptcy Search. Evidence that there is not pending by or against Guarantor any petition for reorganization or arrangement under any bankruptcy
or insolvency law, or any other action brought under any such law. 
  
 Litigation Search. Evidence that there is not pending by or against Farallon, the manager of Borrower and Guarantor any litigation, in the state and federal courts with jurisdiction over the Property and the primary places of
business of Guarantor that could reasonably be expected to: 
  
 Result in any material adverse change in the business, operations, assets, condition (financial or otherwise) or prospects of Guarantor; or 
  
 Materially and adversely affect the ability of Guarantor to perform its obligations under the Guaranty.

  
 Representations and Warranties. Evidence that the
representations and warranties contained in the Loan Documents shall be correct and complete in all material respects on and as of the Closing Date to the same extent as though made on and as of such date. 
  
 Financial Information. Current financial statements, tax returns and
other financial information required by Lender, and evidence that no material adverse change shall have occurred in the financial condition of Guarantor between the date of such financial information and the Closing Date. 
  
 Non-Foreign Certificate. If required by Lender, an affidavit, signed
under penalty of perjury by Investment, stating (a) that each Borrower is not a “foreign corporation,” “foreign partnership,” “foreign trust,” or “foreign estate,” as those terms are deemed in the Revenue Code
and the regulations promulgated thereunder, (b) each Borrower’s U.S. employer identification number, and (c) the address of each Borrower’s principal place of business. Such affidavit shall be consistent with the requirements of the
regulations promulgated under Section 1445 of the Revenue Code and shall otherwise be in form and substance acceptable to Lender. 
  

					
	 	 	EXHIBIT B	  	 
	 	 	-3-	  	 

 Acquisition Documents. The grant deed to any Real Property owned by Sellers on the Closing Date,
an assignment of the Venture Interest to Borrower, and if required by Lender, an amendment to the Venture Agreement, reflecting the admission of Borrower and the withdrawal of the applicable Seller, the documentation assigning the Warmington Loan
Documents and the Shortfall Loan Documents to Borrower, the assignment of all of Seller’s rights under the DDA and DA and other instruments, documents and agreements evidencing the acquisition of the Alameda (Bayport) Assets by Borrower.

  
 Venture Continuing Contracts and Seller Continuing
Contracts. Review and approval by Lender of the Venture Continuing Contracts and the Seller Continuing Contracts (as such terms are defined in the Purchase and Sale Agreement). 
  
 Closing Costs. The payment of all title insurance premiums, and recording charges and escrow fees. 
  
 No Default. The execution and delivery of the Loan Documents by the
parties thereto (other than Lender) will not result in an Event of Default or Potential Default. 
  
 CF Capital Loan. The CF Capital Borrowers shall have executed and delivered the CF Capital Loan Documents and the initial closing of the CF Capital
Loan for the West Bluffs Property and Santa Fe Depot Property (as defined in the CF Capital Loan Agreement) shall occur concurrently with the closing of the Loan on the Closing Date. 
  
 Other Items. Such other items or documents as Lender may reasonably
require. 
  

					
	 	 	EXHIBIT B	  	 
	 	 	-4-	  	 

  
 EXHIBIT C

  
 SINGLE PURPOSE ENTITY 
  
 “Special Purpose Bankruptcy Remote Entity” means, as to
Borrower, a limited liability company which, at all times until the Indebtedness is paid in full (i) will be organized solely for the purpose of owning the Alameda (Bayport) Assets and related easements and property rights acquired by Borrower under
the Purchase and Sale Agreement or otherwise appurtenant to the Real Property or the Venture Land, (ii) will not engage in any business unrelated to the ownership of the Property so owned by such Borrower, (iii) will not have any assets other than
those related to the Property so owned by such Borrower, (iv) will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation or merger, and, except as otherwise expressly permitted by the Loan Documents, will not
engage in, seek or consent to any asset sale, transfer of partnership, membership, shareholder, beneficial interests, or amendment of its limited partnership agreement, articles of incorporation, articles of organization, certificate of formation,
operating agreement, trust agreement, or trust certificate (as applicable) in a manner that would violate the other provisions of this Exhibit G or any other provision of this Agreement or the other Loan Documents, (v) will not fail to correct any
known misunderstanding regarding the separate identity of such entity, (vi) without the unanimous consent of all of the partners, directors, members, beneficial owners and trustees, as applicable, will not with respect to itself or to any other
entity in which it has a direct or indirect legal or beneficial ownership interest (a) file a bankruptcy, insolvency or reorganization petition or otherwise institute insolvency proceedings or otherwise seek any relief under any laws relating to the
relief from debts or the protection of debtors generally; (b) seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for such entity or all or any portion of such
entity’s properties; (c) make a general assignment for the benefit of such entity’s creditors; or (d) make or file a declaration of insolvency in a judicial action, (vii) will maintain its accounts, books and records separate from any
other person or entity, (viii) will maintain its books, records, resolutions and agreements as official records, (ix) has not commingled and will not commingle its funds or assets with those of any other person or entity, (x) has held and will hold
its assets in its own name, (xi) will conduct its business in its name, (xii) will maintain its financial statements, accounting records and other entity documents separate from any other person or entity, (xiii) will pay its own liabilities out of
its own funds and assets, (xiv) will observe all corporate, limited liability company and partnership formalities, as applicable, (xv) has maintained and will maintain an arms-length relationship with its affiliates, (xvi) if such entity owns the
Property, will have no indebtedness other than the Indebtedness except as expressly permitted in this Agreement, (xvii) will not assume or guarantee or become obligated for the debts of any other person or entity or hold out its credit as being
available to satisfy the obligations of any other person or entity, except for the Indebtedness, (xviii) will not acquire obligations or securities of its partners, members, trustees, beneficial owners or shareholders, (xix) will allocate fairly and
reasonably shared expenses, including, without limitation, shared office space and uses separate stationery, invoices and checks, (xx) will not pledge its assets for the benefit of any other person or entity except for the Indebtedness, (xxi) will
hold itself out and identify itself as a separate and distinct entity under its own name and not as a division or part of any other person or entity, (xxii) will not make loans to any person or entity, (xxiii) will not identify its partners,
members, shareholders, 

  

					
	 	 	EXHIBIT D	  	 
	 	 	-1-	  	 

 
trustees, beneficiaries or any affiliates of any of them as a division or part of it, (xxiv) will not enter into or be a party to, any transaction with its
partners, members, shareholders, beneficiaries, trustees or its affiliates except in the ordinary course of its business and on terms which are intrinsically fair and are no less favorable to it than would be obtained in a comparable arms-length
transaction with an unrelated third party, (xxv) will pay the salaries of its own employees from its own funds, (xxvi) will maintain adequate capital in light of its contemplated business operations (as reasonably determined by each Borrower in good
faith), (xxvii) if such entity is a limited liability company, limited partnership, or business trust then such entity shall continue and not dissolve whether as a consequence of bankruptcy or insolvency of one or more of the members, general
partners, or trustees, as applicable, or otherwise, for so long as a solvent managing member, general partner, or trustee, as applicable, exists and, subject to applicable law, dissolution of the entity shall not occur so long as the entity remains
owner of the Venture Interest or the Real Property subject to the applicable Deed of Trust. 
  
 Each such entity’s organizational documents shall contain such provision, (xxviii) if such entity is a limited liability company with two (2) or more members, it may be organized and existing under the laws of
any state, (xxiv) if such entity is a limited liability company with only a single member then it must be organized and existing under the laws of the state of Delaware, and upon the occurrence of any event that causes the member to cease to be a
member of the limited liability company (other than (a) upon an assignment by the member of all of its limited liability company interest in the limited liability company and the admission of the transferee pursuant to the operating agreement, or
(b) the resignation of the member and the admission of an additional member of the limited liability company), each person acting as a Special Member (defined below) pursuant to the operating agreement shall, without any action of any person and
simultaneously with the member ceasing to be a member of the limited liability company, automatically be admitted to the limited liability company as a Special Member and shall continue the limited liability company without dissolution. No Special
Member may resign from the limited liability company or transfer its rights as Special Member unless a successor Special Member has been admitted to the limited liability company as Special Member by executing a counterpart to the operating
agreement; provided, however, the Special Members shall automatically cease to be members of the limited liability company upon the admission to the limited liability company of a substitute member. Each Special Member shall be a member of the
limited liability company that has no interest in the profits, losses and capital of the limited liability company and has no right to receive any distributions of limited liability company assets. Pursuant to Section 18-301 of the Delaware Limited
Liability Company Act (the “Act”), a Special Member shall not be required to make any capital contributions to the limited liability company and shall not receive a limited liability company interest in the limited liability
company. A Special Member, in its capacity as Special Member, may not bind the limited liability company. Except as required by any mandatory provision of the Act, each Special Member, in its capacity as Special Member, shall have no right to vote
on, approve or otherwise consent to any action by, or matter relating to, the limited liability company, including, without limitation, the merger, consolidation or conversion of the limited liability company. The Sole Member shall not, so long as
the Loan has not been paid in full, amend, alter, change or repeal the definition of “Special Member” or any sections that relate to Special Members of the operating agreement without the unanimous written consent of all member(s) and
Special Members. Until the Loan is repaid in full, notwithstanding any other provision of the operating agreement and any provision of law that otherwise empowers the limited liability company or 

  

					
	 	 	EXHIBIT D	  	 
	 	 	-2-	  	 

 
any member or any other person to the contrary, no member nor any other person so authorized shall permit the limited liability company, without the prior
unanimous written consent of Lender and all Special Members, to take any Bankruptcy-Related Action (defined below). Until the Loan is repaid in full, the Sole Member shall cause the limited liability company at all times to have at least one Special
Member who will be appointed by the member. In the event of a vacancy in the position of Special Member, the Sole Member shall, as soon as practicable, appoint a successor Special Member. One or more additional members of the limited liability
company may be admitted to the limited liability company with the written consent of the member; provided, however, that, notwithstanding the foregoing, so long as any obligation to the Lender remains outstanding, no additional member may be
admitted to the limited liability company unless permitted by the Loan Documents. The Sole Member shall agree that the operating agreement constitutes a legal, valid and binding agreement of the Sole Member, and is enforceable against the Sole
Member by the Special Members, in accordance with its terms. In addition, the Special Members shall be intended beneficiaries of the operating agreement. For purposes hereof the term “Special Member” means a person or entity who is
not a member of the limited liability company but has agreed to act as a Special Member under the terms of the operating agreement with only the rights and duties expressly set forth in the operating agreement and only upon the occurrence of certain
events that cause the member to cease to be a member of the limited liability company. 
  
 Until the Loan is paid in full, notwithstanding any other provision of the operating agreement and any provision of law that otherwise empowers the limited liability company or any member or any other person to the
contrary, Borrower shall at all times have at least one (1) Independent Manager who will be appointed by the Sole Member and approved by Lender. To the maximum extent permitted by law, including Section 18-1101(c) of the Act, the Independent Manager
shall consider only the interests of the applicable Borrower, including its respective creditors, in acting or otherwise voting on a Bankruptcy-Related Action. No resignation or removal of an Independent Manager, and no appointment of a successor
Independent Manager, shall be effective until such successor (i) shall have accepted his or her appointment as an Independent Manager by a written instrument, and (ii) shall have executed an instrument signifying its agreement to be bound by the
terms and conditions of this Agreement. In the event of a vacancy in the position of Independent Manager (as a result of the death or incapacity of such Manager or any other event causing such vacancy), the Sole Member shall, as soon as reasonably
practicable, appoint a successor Independent Manager, subject to Lender’s approval. All right, power, and authority of the Independent Managers shall be limited to the extent necessary to exercise those rights and perform those duties
specifically set forth in this Agreement. Except as provided in the second sentence of this paragraph, in exercising the Independent Manager’s rights and performing the Independent Manager’s duties under this Agreement, any Independent
Manager shall have a fiduciary duty of loyalty and care similar to that of a Manager of a business corporation organized under the General Corporation Law of the State of Delaware. No Independent Manager shall at any time serve as trustee in
bankruptcy for any affiliate of any Borrower. Provided that the Sole Member complies with the foregoing provisions of this paragraph, the Sole Member may remove the Independent Manager at any time and for any reason, with or without cause, by giving
written notice thereof to the Independent Manager. The Independent Manager shall be required to provide at least thirty (30) days’ prior written notice of any resignation by the Independent Manager. Until the Loan is paid in full, the operating
agreement for each Borrower shall contain a provision, which shall not be modified 

  

					
	 	 	EXHIBIT D	  	 
	 	 	-3-	  	 

 
without Lender’s written consent (which may be given or withheld in Lender’s sole discretion) until the Loan is paid in full, stating that
notwithstanding any provision of law that otherwise so empowers the applicable Borrower or any other person, the applicable Borrower, and any other person on behalf of the applicable Borrower, without the prior unanimous written consent of the Sole
Member and the Independent Manager, shall not, with respect to the applicable Borrower or any other entity in which the Borrower has a direct or indirect legal or beneficial ownership interest take a Bankruptcy-Related Action. 
  
 A “Bankruptcy-Related Action” means (A) filing a bankruptcy,
insolvency or reorganization petition or otherwise institute insolvency proceedings or otherwise seek any relief under any laws relating to the relief from debts or the protection of debtors generally, (B) seeking or consenting to the appointment of
a receiver, liquidator, assignee, trustee, sequestrator, custodian or similar official for such entity or for all or any portion of such entity’s properties, (C) making a general assignment for the benefit of such entity’s creditors, or
(D) making or filing a declaration of insolvency in a judicial action. 
  
 Notwithstanding the provisions of Section 6.24 of this Agreement, Lender’s acceptance of the foregoing requirements, as applied to the Guarantor, shall be evidenced by Lender’s approval of the operating agreement for the Guarantor
as of the Closing Date, which may be given or withheld in Lender’s sole and absolute discretion. Lender acknowledges that Guarantor is also the Sole Member of each Borrower and of the CF Capital Borrower and will be the Guarantor of both the
Loan and the CF Capital Loan. 
  

					
	 	 	EXHIBIT D	  	 
	 	 	-4-	  	 

  
 EXHIBIT D

  
 PROPERTY SPECIFIC AGREEMENTS 

 
 [THE PROJECT SPECIFIC AGREEMENTS ARE THE SAME AS SET FORTH ON SCHEDULE 11.46 TO THE
PURCHASE AND SALE AGREEMENT, A COPY OF WHICH SCHEDULE FOLLOWS THIS PAGE.] 
  

					
	 	 	EXHIBIT D	  	 
	 	 	-1-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}]]