Document:

Exhibit 10.1

Exhibit 10.1

Execution Copy

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of September 12, 2011, is made
by and between Associated Materials LLC, a Delaware limited liability company (the
“Company”), and Jerry W. Burris (“Executive”).

WHEREAS, the Company desires to employ Executive, and Executive desires to accept such
employment, on the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for
good and valuable consideration, the receipt of which is hereby acknowledged, the parties to this
Agreement hereby agree as follows:

1. Employment. On the terms and subject to the conditions set forth herein, the Company
hereby employs Executive as the Company’s President and Chief Executive Officer, and Executive
accepts such employment, for the Employment Term (as defined in Section 3). During the Employment
Term, Executive shall report to the Board of Directors of AMH Investment Holdings Corp., a Delaware
corporation (“Parent”), performing such duties as shall be reasonably required of a
president and chief executive officer of a corporation of a similar size and nature to the Company,
and shall have such other powers and perform such other duties as may from time to time be assigned
to him by the Board of Directors of Parent (the “Board”). To the extent requested by the
Board, Executive shall also serve on any committees of the Board and/or as a director, officer or
employee of Parent or any other person or entity which, from time to time, is a direct or indirect
subsidiary of Parent (Parent and each such subsidiary, person or entity, other than the Company,
are hereinafter referred to collectively as the “Affiliates,” and individually as an
“Affiliate”). Executive’s service as a director of the Company or as a director, officer or
employee of any Affiliate shall be without additional compensation.

2. Performance. Executive will serve the Company faithfully and to the best of his
ability and will devote his full business time, energy, experience and talents to the business of
the Company and the Affiliates; provided, that it shall not be a violation of this
Agreement for Executive to manage his personal investments and business affairs, or to engage in or
serve such civic, community, charitable, educational, or religious organizations as he may
reasonably select so long as such service does not interfere with Executive’s performance of his
duties hereunder.

3. Employment Term. Subject to earlier termination pursuant to Section 6, Executive’s
term of employment hereunder shall begin on September 12, 2011 (the “Commencement Date”),
and continue through the date which is three years following the Commencement Date;
provided, that beginning on the third anniversary of the Commencement Date, and on each
subsequent anniversary of the Commencement Date, such term shall be automatically extended by an
additional one year beyond the end of the then-current term, unless, at least 90 days before such
third anniversary of the Commencement Date, or 90 days before any such subsequent anniversary of
the Commencement Date, the Board gives written notice to Executive that the Company does not desire
to extend the term of this Agreement, in which case, the term of employment hereunder shall
terminate as of the third anniversary of the Commencement Date or the end of the then-current term,
as applicable (the term of employment hereunder, including any extensions, in accordance with this
Section 3, shall be referred to herein as the “Employment Term”).

4. Compensation and Benefits.

(a) Salary. As compensation for his services hereunder and in consideration of
Executive’s other agreements hereunder, during the Employment Term, the Company shall pay Executive
a base salary, payable in equal installments in accordance with the Company’s payroll
procedures, at an annual rate of $550,000, subject to annual review by the Board (or its
compensation committee) which may increase, but not decrease, Executive’s base salary.

  

 

 

(b) Annual Incentive Bonus. Commencing on the Commencement Date, Executive shall be
entitled to participate in an annual incentive bonus arrangement established by the Company on
terms and conditions substantially as set forth in Exhibit A hereto. Any annual incentive
bonus to which Executive is entitled under this Agreement for any calendar year shall be paid in a
cash lump-sum within 30 days following the close of books of AMH Intermediate Holdings Corp., a
Delaware corporation and a wholly-owned subsidiary of Parent (“Intermediate”) and
completion of Intermediate’s annual audit by its external accountants for such calendar year but in
any event shall not be paid later than March 15th of the calendar year immediately
following the calendar year to which the bonus relates.

(c) Retirement, Medical, Dental and Other Benefits. During the Employment Term,
Executive shall, in accordance with the terms and conditions of the applicable plan documents and
all applicable laws, be eligible to participate in the various retirement, medical, dental and
other employee benefit plans made available by the Company, from time to time, for its executives.

(d) Vacation; Sick Leave. During the Employment Term, Executive shall be entitled to
not less than four weeks of vacation during each calendar year and sick leave in accordance with
the Company’s policies and practices with respect to its executive officers.

(e) Business Expenses. The Company shall reimburse or advance payment to Executive
for all reasonable expenses actually incurred by him in connection with the performance of his
duties hereunder in accordance with policies established by the Company from time to time and
subject to receipt by the Company of appropriate documentation.

5. Covenants of Executive. Executive acknowledges that in the course of his
employment with the Company he will become familiar with the Company’s and the Affiliates’ trade
secrets and with other confidential information concerning the Company and the Affiliates, and that
his services are of special, unique and extraordinary value to the Company and the Affiliates.
Therefore, the Company and Executive mutually agree that it is in the interest of both parties for
Executive to enter into the restrictive covenants set forth in this Section 5 and that such
restrictions and covenants are reasonable given the nature of Executive’s duties and the nature of
the Company’s business.

(a) Noncompetition. During the Employment Term and for the two year period following
termination of the Employment Term (the “Restricted Period”), Executive shall not, within
any jurisdiction or marketing area in which the Company or any Affiliate is doing or is qualified
to do business, directly or indirectly, own, manage, operate, control, be employed by or
participate in the ownership, management, operation or control of, or be connected in any manner
with, any Business (as hereinafter defined); provided that Executive’s ownership of
securities of two percent (2%) or less of any class of securities of a public company shall not, by
itself, be considered to be competition with the Company or any Affiliate. For purposes of this
Agreement, “Business” shall mean the manufacturing, production, distribution or sale of
exterior residential building products, including, without limitation, vinyl siding, windows,
fencing, decking, railings and garage doors, or any other business of a type and character engaged
in by the Company or an Affiliate during the Employment Term (including, without limitation, any
business in which the Company or any Affiliate has specific plans to conduct in the future and as
to which Executive was aware of such planning at or prior to the time Executive’s employment is
terminated).

 

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(b) Nonsolicitation. During the Employment Term and the Restricted Period, Executive
shall not, directly or indirectly, (i) hire or employ, solicit for employment or otherwise contract
for the services of any individual who is or was an employee or consultant of the Company or any
Affiliate; (ii) otherwise induce or attempt to induce any employee or consultant of the Company or
an Affiliate to leave the employ or service of the Company or such Affiliate, or in any way
interfere with the relationship between the Company or any Affiliate and any employee or consultant
respectively thereof; or (iii) induce or attempt to induce any customer, supplier, licensee or
other business relation of the Company or any Affiliate to cease doing business with the Company or
such Affiliate, or interfere in any way with the relationship between any such customer, supplier,
licensee or business relation and the Company or any Affiliate.

(c) Nondisclosure; Inventions. For the Employment Term and at all times thereafter,
(i) Executive shall not divulge, transmit or otherwise disclose (except as legally compelled by
court order, and then only to the extent required, after prompt notice to the Board of any such
order), directly or indirectly, other than in the regular and proper course of business of the
Company and the Affiliates, any customer lists, trade secrets or other confidential knowledge or
information with respect to the operations or finances of the Company or any Affiliates or with
respect to confidential or secret processes, services, techniques, customers or plans with respect
to the Company or the Affiliates, including, without limitation, any know-how, research and
development, software, databases, inventions, processes, formulae, technology, designs and other
intellectual property, information concerning finances, investments, profits, pricing, costs,
products, services, vendors, customers, clients, partners, investors, personnel, compensation,
recruiting, training, advertising, sales, marketing, promotions, government and regulatory
activities and approvals concerning the past, current or future business, activities and operations
of the Company and the Affiliates (all of the foregoing collectively hereinafter referred to as
“Confidential Information”), and (ii) Executive will not use, directly or indirectly, any
Confidential Information for the benefit of anyone other than the Company and the Affiliates;
provided, that Executive has no obligation, express or implied, to refrain from using or
disclosing to others any such knowledge or information which is or hereafter shall become available
to the general public other than through disclosure by Executive. All Confidential Information,
new processes, techniques, know-how, methods, inventions, plans, products, patents and devices
developed, made or invented by Executive, alone or with others, while an employee of the Company
which are related to the business of the Company and the Affiliates shall be and become the sole
property of the Company, unless released in writing by the Board, and Executive hereby assigns any
and all rights therein or thereto to the Company.

(d) Nondisparagement. During the Employment Term and at all times thereafter,
Executive shall not take any action to disparage or criticize the Company or any Affiliate or their
respective employees, directors, owners or customers or to engage in any other action that injures
or hinders the business relationships of the Company or any Affiliate. Nothing contained in this
Section 5(d) shall preclude Executive from enforcing his rights under this Agreement.

(e) Return of Company Property. All Confidential Information, files, records,
correspondence, memoranda, notes or other documents (including, without limitation, those in
computer-readable form) or property relating or belonging to the Company or an Affiliate, whether
prepared by Executive or otherwise coming into his possession in the course of the performance of
his services under this Agreement, shall be the exclusive property of the Company and shall be
delivered to the Company, and not retained by Executive (including, without limitations, any copies
thereof), promptly upon request by the Company and, in any event, promptly upon termination of the
Employment Term.

(f) Enforcement. Executive acknowledges that a breach of his covenants contained in
this Section 5 may cause irreparable damage to the Company and the Affiliates, the exact amount of
which would be difficult to ascertain, and that the remedies at law for any such breach or
threatened
breach would be inadequate. Accordingly, Executive agrees that if he breaches or threatens to
breach any of the covenants contained in this Section 5, in addition to any other remedy which may
be available at law or in equity, the Company and the Affiliates shall be entitled to specific
performance and injunctive relief to prevent the breach or any threatened breach thereof without
bond or other security or a showing that monetary damages will not provide an adequate remedy.

  

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(g) Scope of Covenants. The Company and Executive further acknowledge that the time,
scope, geographic area and other provisions of this Section 5 have been specifically negotiated by
sophisticated commercial parties and agree that all such provisions are reasonable under the
circumstances of the activities contemplated by this Agreement. In the event that the agreements in
this Section 5 shall be determined by any court of competent jurisdiction to be unenforceable by
reason of their extending for too great a period of time or over too great a geographical area or
by reason of their being too extensive in any other respect, they shall be interpreted to extend
only over the maximum period of time for which they may be enforceable and/or over the maximum
geographical area as to which they may be enforceable and/or to the maximum extent in all other
respects as to which they may be enforceable, all as determined by such court in such action.

6. Termination. The employment of Executive hereunder shall automatically terminate
at the end of the Employment Term. The employment of Executive hereunder and the Employment Term
may also be terminated at any time by the Company with or without Cause. For purposes of this
Agreement, “Cause” shall mean: (i) embezzlement, theft or misappropriation by Executive of
any property of the Company or an Affiliate; (ii) any breach by Executive of Executive’s covenants
under Section 5; (iii) any breach by Executive of any other material provision of this Agreement
which breach is not cured, to the extent susceptible to cure, within 30 days after the Company has
given written notice to Executive describing such breach; (iv) willful failure by Executive to
perform the duties of his employment hereunder which continues for a period of 14 days following
written notice thereof by the Company to Executive; (v) the conviction of, or a plea of
nolo contendere (or a similar plea) to, any criminal offense that is a felony or
involves fraud, or any other criminal offense punishable by imprisonment of at least one year or
materially injurious to the business or reputation of the Company or an Affiliate involving theft,
dishonesty, misrepresentation or moral turpitude; (vi) gross negligence or willful misconduct on
the part of Executive in the performance of his duties as an employee, officer or director of the
Company or an Affiliate; (vii) Executive’s breach of his fiduciary obligations to the Company or an
Affiliate; (viii) Executive’s commission of intentional, wrongful damage to property of the Company
or an Affiliate; (ix) any chemical dependence of Executive which adversely affects the performance
of his duties and responsibilities to the Company or an Affiliate; or (x) Executive’s violation of
the Company’s or an Affiliate’s code of ethics, code of business conduct or similar policies
applicable to Executive. The existence or non-existence of Cause shall be determined in good faith
by the Board. The employment of Executive may also be terminated at any time by Executive by notice
of resignation delivered to the Company not less than 90 days prior to the effective date of such
resignation.

7. Severance for Terminations. Subject to Section 8 and to Executive’s continued
compliance with the covenants set forth in Section 5, if Executive’s employment hereunder is
terminated during the Employment Term by the Company or is terminated due to expiration of the
Employment Term following notice by the Company not to extend the Employment Term in accordance
with Section 3, in each case other than for Cause or due to disability (as determined in the good
faith discretion of the Board) or death, Executive shall be entitled to receive as severance: (i)
an amount equal to two times (2X) Executive’s base salary pursuant to Section 4(a) (at the rate in
effect immediately prior to the Termination Date),which amount shall be payable, commencing no
earlier than the sixty-first day following such termination, in 24 equal monthly installments
(other than the first such installment, which shall include all amounts that would otherwise have
been paid to Executive if payment had commenced immediately following such termination of
employment) in accordance with the Company’s payroll procedures over

 

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the 24-month period following the date of Executive’s termination (such period, the
“Severance Period”); (ii) continued medical and dental benefits described in Section 4(c)
for the Severance Period, at the same rate of employee and Company shared costs of such coverage as
in effect from time to time for active employees of the Company; and (iii) a pro rata portion
(based on the number of days Executive was employed by the Company during the calendar year of
termination) of any annual incentive bonus otherwise payable in accordance with Section 4(b) for
the year of termination of Executive’s employment, payable no earlier than the date on which such
bonus, if any, would have been paid under the applicable plan or policy of the Company absent such
termination of employment, but no later than March 15th of the calendar year immediately
following the calendar year of such termination. With respect to any such continued medical and
dental benefits described in clause (ii) of the first sentence of this Section 7 for which
Executive is eligible, (I) if the Company cannot continue such benefits without adverse tax
consequences to Executive or the Company or for any other reason, the Company shall pay Executive
for the cost of such benefits; (II) such benefits shall be discontinued in the event Executive
becomes eligible for similar benefits from a successor employer (and Executive’s eligibility for
any such benefits shall be reported by Executive to the Company); and (III) Executive’s period of
“continuation coverage” for purposes of Section 4980B of the Internal Revenue Code of 1986, as
amended (the “Code”), shall be deemed to commence on the date of Executive’s termination of
employment.

8. Termination of Compensation and Benefits; Execution of Release; Coordination of
Provisions. If Executive’s employment terminates otherwise than in a termination entitling him
to severance pay and benefits pursuant to Section 7, Executive shall not be entitled to any
severance, termination pay or similar compensation or benefits, provided that
Executive shall be entitled to any benefits then due or accrued in accordance with the applicable
employee benefit plans of the Company or applicable law, including “continuation coverage” under
the Company’s group health plans for purposes of Section 4980B of the Code. As a condition of
receiving any severance compensation for which Executive otherwise qualifies under Section 7,
Executive agrees to execute within sixty (60) days following the date of Executive’s termination of
employment a general release in favor of the Company in substantially the form set forth hereto as
Exhibit B, such release to be delivered, and to have become fully irrevocable, on or before
the end of such 60-day period. It is expressly agreed and understood that if such a release has
not been executed and delivered and become fully irrevocable by the end of such 60-day period, no
amounts or benefits under Section 7 shall be or become payable (except that any continued medical,
dental or life insurance benefits may be provided during such 60-day period pursuant to Section 7,
as the case may be, but will cease to be provided on the last day of such period). Executive
acknowledges and agrees that, except as specifically described in Section 7, all of Executive’s
rights to any compensation, benefits (other than base salary earned through the date of termination
of employment and any benefits due or accrued prior to termination of employment in accordance with
the applicable employee benefit plans of the Company or applicable law), bonuses or severance from
the Company or any Affiliate after termination of the Employment Term shall cease upon such
termination.

9. Limitation on Payments and Benefits. Notwithstanding any provision of this
Agreement to the contrary, no amount or benefit shall be paid or provided under this Agreement or
otherwise to an extent or in a manner that would result in payments or benefits (or other
compensation) not being fully deductible by the Company or an Affiliate for federal income tax
purposes because of Section 280G of the Code, or any successor provision thereto (or that would
result in Executive being subject to the excise tax imposed by Section 4999 of the Code, or any
successor provision thereto). The determination of whether any such payments or benefits to be
provided under this Agreement or otherwise would not be so deductible (or whether Executive would
be subject to such excise tax) shall be made at the expense of the Company, if requested by either
Executive or the Company, by a firm of independent accountants or a law firm selected by the
Company and reasonably acceptable to Executive. In the event that any payment or benefit intended
to be provided under this Agreement or otherwise would constitute a “parachute payment,” as defined
in Section 280G of the Code, the Company shall designate the payments and/or
benefits (beginning with cash payments) to be reduced or modified so that the Company or an
Affiliate is not denied any federal income tax deductions for any such parachute payment because of
Section 280G of the Code (or so that Executive is not subject to the excise tax imposed by Section
4999 of the Code).

  

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10. Notice. Any notices required or permitted hereunder shall be in writing and shall
be deemed to have been given when personally delivered or when mailed, certified or registered
mail, or sent by reputable overnight courier, postage prepaid, to the addresses set forth as
follows:

If to the Company:

Associated Materials LLC

3773 State Road

Cuyahoga Falls, OH 44223

Attention: Corporate Secretary

With copies, which shall not constitute notice, to:

AMH Investment Holdings Corp.

c/o Hellman & Friedman LLC

One Maritime Plaza, 12th Floor

San Francisco, CA 94111

Attention: Erik Ragatz and Arrie Park, Esq.

-and-

Simpson Thacher & Bartlett LLP

2550 Hanover Street

Palo Alto, CA 94304

Attention: Chad Skinner, Esq. and Tristan Brown, Esq.

If to Executive, to such address as shall most currently appear on the records of
the Company.

or to such other address as shall be furnished in writing by either party to the other party;
provided that such notice or change in address shall be effective only when
actually received by the other party.

11. General. 

(a) GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE
OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER
JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE
APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL
THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF
LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY
APPLY. ANY ACTION TO ENFORCE THIS AGREEMENT AND/OR THE EXHIBITS HERETO MUST BE BROUGHT IN, AND THE
PARTIES HEREBY CONSENT TO THE JURISDICTION OF, A COURT SITUATED IN THE CITY OF WILMINGTON,
DELAWARE. EACH PARTY HEREBY WAIVES THE RIGHTS TO
CLAIM THAT ANY SUCH COURT IS AN INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION.
EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING
TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

  

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(b) Construction and Severability. If any provision of this Agreement shall be held
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions contained herein shall not in any way be affected or impaired, and the
parties undertake to implement all efforts which are necessary, desirable and sufficient to amend,
supplement or substitute all and any such invalid, illegal or unenforceable provisions with
enforceable and valid provisions which would produce as nearly as may be possible the result
previously intended by the parties without renegotiation of any material terms and conditions
stipulated herein.

(c) Assignability. Executive may not assign his interest in or delegate his duties
under this Agreement. This Agreement is for the employment of Executive, personally, and the
services to be rendered by him under this Agreement must be rendered by him and no other person.
This Agreement shall be binding upon and inure to the benefit of and be enforceable by the Company
and its successors and assigns. Without limiting the foregoing and notwithstanding anything else in
this Agreement to the contrary, the Company may assign this Agreement to, and all rights hereunder
shall inure to the benefit of, any subsidiary of the Company or any person, firm or corporation
resulting from the reorganization of the Company or succeeding to the business or assets of the
Company by purchase, merger, consolidation or otherwise.

(d) Compliance with IRC Section 409A. Notwithstanding anything herein to the
contrary, (i) if at the time of Executive’s termination of employment with the Company, Executive
is a “specified employee” as defined in Section 409A of the Code and the deferral of the
commencement of any payments or benefits otherwise payable hereunder as a result of such
termination of employment is necessary in order to prevent any accelerated or additional tax under
Section 409A of the Code, then the Company will defer the commencement of the payment of any such
payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid
or provided to Executive) to the extent necessary to comply with the requirements of Section 409A
of the Code until the first business day that is more than six months following Executive’s
termination of employment with the Company (or the earliest date as is permitted under Section 409A
of the Code) and (ii) if any other payments of money or other benefits due to Executive hereunder
could cause the application of an accelerated or additional tax under Section 409A of the Code,
such payments or other benefits shall be deferred if deferral will make such payment or other
benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits
shall be restructured, to the extent possible, in a manner, determined by the Board, that does not
cause such an accelerated or additional tax. In the event that payments under this Agreement are
deferred pursuant to this Section 11(d) in order to prevent any accelerated tax or additional tax
under Section 409A of the Code, then such payments shall be paid at the time specified under this
Section 11(d) without any interest thereon. The Company shall consult with Executive in good faith
regarding the implementation of this Section 11(d); provided that neither the Company nor
any of its Affiliates, employees or representatives shall have any liability to Executive with
respect to the imposition of any early or additional tax under Section 409A of the Code.
Notwithstanding anything to the contrary herein, to the extent required by Section 409A of the
Code, a termination of employment shall not be deemed to have occurred for purposes of any
provision of this Agreement providing for the payment of amounts or benefits upon or following a
termination of employment unless such termination is also a “Separation from Service” within the
meaning of Section 409A of the Code and, for purposes of any such provision of this Agreement,
references to a “resignation,” “termination,” “termination of employment” or like terms shall mean
“Separation from Service.” For purposes of Section 409A of the Code, each payment made under this
Agreement shall be designated as a “separate payment” within the meaning of Section 409A of
the Code. Notwithstanding anything to the contrary herein, except to the extent any expense,
reimbursement or in-kind benefit provided pursuant to this Agreement does not constitute a
“deferral of compensation” within the meaning of Section 409A of the Code, (x) the amount of
expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar
year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided
to Executive in any other calendar year, (y) the reimbursements for expenses for which Executive is
entitled to be reimbursed shall be made on or before the last day of the calendar year following
the calendar year in which the applicable expense is incurred and (z) the right to payment or
reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other
benefit.

  

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(e) Warranty by Executive. Executive represents and warrants to the Company that
Executive is not subject to any contract, agreement, judgment, order or decree of any kind, or any
restrictive agreement of any character, that restricts Executive’s ability to perform his
obligations under this Agreement or that would be breached by Executive upon his performance of his
duties pursuant to this Agreement, and Executive shall indemnify and hold harmless the Company and
the Affiliates from and against any and all liabilities, losses, claims, obligations or the like
arising from or in connection with any breach of, or inaccuracy in, Executive’s representations and
warranties contained in this sentence.

(f) Compliance with Rules and Policies. Executive shall perform all services in
accordance with the lawful policies, procedures and rules established by the Company and the Board.
In addition, Executive shall comply with all laws, rules and regulations that are generally
applicable to the Company or its subsidiaries and their respective employees, directors and
officers.

(g) Withholding Taxes. All amounts payable hereunder shall be subject to the
withholding of all applicable taxes and deductions required by any applicable law.

(h) Entire Agreement; Modification. This Agreement, together with the offer letter
(excluding the exhibit) from Associated Materials Incorporated to Executive, dated August 29, 2011,
constitutes the entire agreement of the parties hereto with respect to the subject matter hereof,
supersedes all prior agreements and undertakings, both written and oral, and may not be modified or
amended in any way except in writing by the parties hereto.

(i) Duration. Notwithstanding the Employment Term hereunder, this Agreement shall
continue for so long as any obligations remain under this Agreement.

(j) Termination On or After Expiration of the Employment Term. Unless the Company and
Executive otherwise agree in writing, any continuation of Executive’s employment with the Company
and its Affiliates beyond the expiration of the Employment Term shall be deemed an employment “at
will” and shall not be deemed to extend any of the provisions of this Agreement (other than as
provided in Section 11(j) below), and Executive’s employment may thereafter be terminated “at will”
by Executive or the Company.

(k) Survival. The covenants set forth in Section 5 and the parties’ respective rights
and obligations under Section 7 shall survive and shall continue to be binding upon Executive and
the Company, as the case may be, in accordance with their terms, notwithstanding the termination or
expiration of this Agreement or the termination of Executive’s employment for any reason
whatsoever.

(l) Waiver. No waiver by either party hereto of any of the requirements imposed by
this Agreement on, or any breach of any condition or provision of this Agreement to be performed
by, the other party shall be deemed a waiver of a similar or dissimilar requirement, provision or
condition of this Agreement at the same or any prior or subsequent time. Any such waiver shall be
express and in writing,
and there shall be no waiver by conduct. Pursuit by either party of any available remedy,
either in law or equity, or any action of any kind, does not constitute waiver of any other remedy
or action. Such remedies are cumulative and not exclusive.

  

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(m) Counterparts. This Agreement may be executed in two or more counterparts, all of
which taken together shall constitute one instrument.

(n) Section References. The words Section and paragraph herein shall refer to
provisions of this Agreement unless expressly indicated otherwise.

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have hereunto executed
this Agreement as of the day and year first written above.

	 	 	 	 	 
	 	ASSOCIATED MATERIALS LLC

 	 
	 	/s/ Dana R. Snyder
 	 
	 	By: Dana R. Snyder 	 
	 	Its:  Interim Chief Executive Officer 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Jerry W. Burris
 	 
	 	Jerry W. Burris 	 
	 	 	 
	 

[Signature Page to Burris Employment Agreement]

 

 

 

EXHIBIT A

Annual Incentive Bonus

Executive is eligible to receive an annual bonus under the Company’s Senior Executive Incentive
Compensation Program, with a target bonus equal to 100% of base salary (the “Target Bonus”)
and a maximum bonus of 255% of base salary. With respect to each fiscal year commencing with the
2012 fiscal year, the amount of annual bonus payable will be based upon the achievement of both (i)
an Adjusted EBITDA goal (the “EBITDA Bonus”) and (ii) other operating metrics (the “OM
Bonus”). The EBITDA Bonus will constitute at least 50% of the Target Bonus. For the OM Bonus,
the applicable operating metrics for each fiscal year, as well as the bonus ranges for these
metrics, will be established by the compensation committee of the board of directors of the
Company, in mutual agreement with Executive, within the first 90 days of each such fiscal year.
For the 2011 fiscal year, Executive will be paid a bonus equal to the Target Bonus, pro-rated based
on the actual number of days Executive is employed by the Company in 2011.

For purposes of Executive’s annual incentive bonus and the computation thereof:

	 	1.	 	Base salary shall mean the annual rate of base salary in effect under this Agreement as
of December 31 of the calendar year to which the bonus relates.

	 
	 	2.	 	“Adjusted EBITDA” means the “EBITDA” of Intermediate for the applicable fiscal
year, as such term is as defined in the Indenture, except that clause (1)(i) of such
definition shall not apply for purposes of this Agreement. “Indenture” means the
Indenture dated as of October 13, 2010 among Carey Acquisition Corp., AMH New Finance, Inc.
(formerly known as Carey New Finance, Inc.), Associated Materials, LLC, Wells Fargo Bank,
National Association and the other parties thereto, as amended from time to time.

	 
	 	3.	 	Adjusted EBITDA targets will be adjusted by the Board (or its compensation committee) in good
faith to reflect each acquisition or disposition by the Company or any of its Affiliates subsequent
to the Commencement Date of any business, operation, entity (including the acquisition of only a
portion of an entity whose results will be consolidated by the Company in accordance with generally
accepted accounting principles), division of any entity or any assets outside the ordinary course
of business. If the Company or any Affiliate makes such an acquisition or disposition in a given
fiscal year, the Adjusted EBITDA target for such fiscal year and subsequent fiscal years, if
applicable, shall be proportionately adjusted, fairly and appropriately, and only to the extent
deemed necessary by the Board (or its compensation committee) (after consultation with the
Company’s accountants), in the exercise of its good faith judgment, in order to accurately reflect
the direct and measurable effect such acquisition or disposition has or is reasonably expected to
have on such Adjusted EBITDA target(s). In addition, to the extent applicable, Adjusted EBITDA
target(s) will be adjusted by the Board (or its compensation committee) (after consultation with
the Company’s accountants) in good faith to reflect any changes in generally accepted accounting
principles promulgated by accounting standard setters in order to accurately reflect the effect of
such changes on such Adjusted EBITDA target(s). The intent of such adjustments is to keep the
probability of achieving the Adjusted EBITDA targets the same as if the event triggering such
adjustment had not occurred. The Board’s (or its compensation committee’s) determination of such
necessary adjustment(s) shall be made within 90 days following the completion or closing of such
event, as applicable, and shall be based on the Company’s accounting as set forth in its books and
records and on the Company’s financial plan pursuant to which the Adjusted EBITDA targets were
originally established. Any such adjustment(s) made in good faith shall be final and binding on
all persons.

 

1

 

EXHIBIT B

GENERAL RELEASE

THIS AGREEMENT
AND RELEASE, dated as of
_________, 20____
(this “Agreement”), is entered
into by and between Jerry W. Burris (“Executive”) and Associated Materials LLC (the
“Company”).

WHEREAS, Executive entered into an employment agreement by and between Executive and the
Company, dated as of September 12, 2011 (the “Employment Agreement”); and

WHEREAS, Executive’s employment with the Company will terminate effective as of
_________, 20____;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this
Agreement and other good and valuable consideration, Executive and the Company hereby agree as
follows:

1. Executive shall be provided severance pay and other benefits (the “Severance
Benefits”) in accordance with the terms and conditions of Section 7 of the Employment
Agreement; provided that, no such Severance Benefits shall be paid or provided if
Executive revokes this Agreement pursuant to Section 4 below.

2. Executive, for and on behalf of himself and Executive’s heirs, successors, agents,
representatives, executors and assigns, hereby waives and releases any common law, statutory or
other complaints, claims, demands, expenses, damages, liabilities, charges or causes of action
(each, a “Claim”) arising out of or relating to Executive’s employment or termination of
employment with, Executive’s serving in any capacity in respect of, or Executive’s status at any
time as a holder of any securities of, any of the Company and any of its affiliates (collectively,
the “Company Group”), both known and unknown, in law or in equity, which Executive may now
have or ever had against any member of the Company Group or any equityholder, agent,
representative, administrator, trustee, attorney, insurer, fiduciary, employee, director or officer
of any member of the Company Group, including their successors and assigns (collectively, the
“Company Releasees”), including, without limitation, any claim for any severance benefit
which might have been due Executive under any previous agreement executed by and between any member
of the Company Group and Executive, and any complaint, charge or cause of action arising out of his
employment with the Company Group under the Age Discrimination in Employment Act of 1967
(“ADEA,” a law which prohibits discrimination on the basis of age against individuals who
are age 40 or older), the National Labor Relations Act, the Civil Rights Act of 1991, the Americans
with Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee Retirement
Income Security Act of 1974, the Family Medical Leave Act, the Equal Pay Act, the Securities Act of
1933, the Securities Exchange Act of 1934, the Rehabilitation Act of 1973, the Worker Adjustment
and Retraining Notification Act, and the New York State Human Rights Law, all as amended; and all
other federal, state and local statutes, ordinances and regulations. By signing this Agreement,
Executive acknowledges that Executive intends to waive and release any rights known or unknown
Executive may have against the Company Releasees under these and any other laws; provided
that, Executive does not waive or release Claims (i) with respect to the right to enforce
this Agreement or those provisions of the Employment Agreement that expressly survive the
termination of Executive’s employment with the Company, (ii) with respect to any vested right
Executive may have under any employee pension or welfare benefit plan of the Company Group, or
(iii) any rights to indemnification under any applicable indemnification agreement, any D&O
insurance policy applicable to Executive and/or the Company’s certificates of incorporation,
charter and by-laws, or (iv) with respect to any claims that cannot legally be waived.

 

1

 

3. Executive acknowledges that Executive has been given twenty-one (21) days from the date of
receipt of this Agreement to consider all of the provisions of the Agreement and, to the extent he
has not used the entire 21-day period prior to executing the Agreement, he does hereby knowingly
and voluntarily waive the remainder of said 21-day period. EXECUTIVE FURTHER ACKNOWLEDGES THAT HE
HAS READ THIS AGREEMENT CAREFULLY, HAS BEEN ADVISED BY THE COMPANY TO CONSULT AN ATTORNEY, AND
FULLY UNDERSTANDS THAT BY SIGNING BELOW HE IS GIVING UP CERTAIN RIGHTS WHICH HE MAY HAVE TO SUE OR
ASSERT A CLAIM AGAINST ANY OF THE COMPANY RELEASEES, AS DESCRIBED HEREIN AND THE OTHER PROVISIONS
HEREOF. EXECUTIVE ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER WHATSOEVER
TO SIGN THIS AGREEMENT AND EXECUTIVE AGREES TO ALL OF ITS TERMS VOLUNTARILY.

4. Executive shall have seven (7) days from the date of Executive’s execution of this
Agreement to revoke the release, including with respect to all claims referred to herein
(including, without limitation, any and all claims arising under ADEA). If Executive revokes the
Agreement, Executive will be deemed not to have accepted the terms of this Agreement.

[Signature page follows]

 

2

 

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

	 	 	 	 	 
	 	ASSOCIATED MATERIALS LLC

 	 
	 	 	 
	 	By: 	 
	 	Its: 	 
	 
	 	EXECUTIVE

 	 
	 	 	 
	 	Jerry W. Burrisexv10w1

Exhibit 10.1

PURCHASE AND SALE AGREEMENT

By and between

CORNERSTONE REALTY FUND, LLC

as Seller,

and

REXFORD INDUSTRIAL FUND V, L.P.

as Purchaser

September 1, 2011

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. DEFINITIONS
	 	 	1	 
	1.1 “Agreement”
	 	 	1	 
	1.2 “Business Day
	 	 	1	 
	1.3 “Closing”
	 	 	1	 
	1.4 “Closing Date”
	 	 	1	 
	1.5 “Commitment”
	 	 	1	 
	1.6 “Deposit”
	 	 	1	 
	1.7 “Escrow Agent”
	 	 	1	 
	1.8 “Existing Surveys”
	 	 	1	 
	1.9 “Existing Title Policies”
	 	 	1	 
	1.10 “Grant Deeds”
	 	 	1	 
	1.11 “Improvements”
	 	 	2	 
	1.12 “Land”
	 	 	2	 
	1.13 “Leases”
	 	 	2	 
	1.14 “Other Property”
	 	 	2	 
	1.15 “Permitted Exceptions”
	 	 	2	 
	1.16 “Property” or “Properties”
	 	 	2	 
	1.17 “Purchase Price”
	 	 	2	 
	1.18 “Purchaser”
	 	 	2	 
	1.19 “Rent Roll”
	 	 	3	 
	1.20 “Seller”
	 	 	3	 
	1.21 “Survey”
	 	 	3	 
	1.22 “Title Company”
	 	 	3	 
	1.23 “Title Inspection Period”
	 	 	3	 
	 
	 	 	 	 
	2. PURCHASE AND SALE; CLOSING
	 	 	3	 
	2.1 Purchase and Sale
	 	 	3	 
	2.2 Closing
	 	 	3	 
	2.3 Payment of Purchase Price
	 	 	3	 
	2.4 Escrow Agent
	 	 	4	 
	 
	 	 	 	 
	3. TITLE, DILIGENCE MATERIALS, ETC
	 	 	4	 
	3.1 Title
	 	 	4	 
	3.2 Survey
	 	 	5	 
	3.3 Property Documents
	 	 	5	 
	3.4 Inspection Indemnity
	 	 	8	 
	 
	 	 	 	 
	4. CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE
	 	 	8	 
	4.1 Closing Documents
	 	 	8	 
	4.2 Title Policy
	 	 	9	 
	4.3 Other Conditions
	 	 	9	 
	 
	 	 	 	 
	5. CONDITIONS TO SELLER’ OBLIGATION TO CLOSE
	 	 	10	 

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	 	 	Page	 
	5.1 Purchase Price
	 	 	10	 
	5.2 Closing Documents
	 	 	10	 
	5.3 Other Conditions
	 	 	11	 
	 
	 	 	 	 
	6. REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	11	 
	6.1 Status and Authority of the Seller
	 	 	11	 
	6.2 Action of the Seller
	 	 	11	 
	6.3 No Violations of Agreements
	 	 	11	 
	6.4 Litigation
	 	 	11	 
	6.5 Existing Leases
	 	 	11	 
	6.6 Agreements
	 	 	11	 
	6.7 Not a Foreign Person
	 	 	12	 
	6.8 Prohibited Person
	 	 	12	 
	6.9 No Approval
	 	 	12	 
	6.10 Bankruptcy
	 	 	12	 
	6.11 No Notices
	 	 	12	 
	6.12 Cause to be Untrue
	 	 	12	 
	6.16 AS-IS
	 	 	13	 
	 
	 	 	 	 
	7. REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	15	 
	7.1 Status and Authority of the Purchaser
	 	 	15	 
	7.2 Action of the Purchaser
	 	 	15	 
	7.3 No Violations of Agreements
	 	 	16	 
	7.4 Litigation
	 	 	16	 
	7.5 Prohibited Person
	 	 	16	 
	7.6 No Approvals
	 	 	16	 
	7.7 Bankruptcy
	 	 	16	 
	 
	 	 	 	 
	8. COVENANTS OF THE SELLER
	 	 	16	 
	8.1 Approval of Leasing
	 	 	16	 
	8.2 Operation of Property
	 	 	17	 
	8.3 Compliance with Laws
	 	 	17	 
	8.4 Compliance with Agreements
	 	 	17	 
	8.5 Notice of Material Changes or Untrue Representations
	 	 	17	 
	8.6 Insurance
	 	 	17	 
	8.7 Cooperation
	 	 	17	 
	 
	 	 	 	 
	9. APPORTIONMENTS
	 	 	17	 
	9.1 Real Property Apportionments
	 	 	17	 
	9.2 Closing Costs
	 	 	20	 
	 
	 	 	 	 
	10. DAMAGE TO OR CONDEMNATION OF PROPERTY
	 	 	20	 
	10.1 Casualty
	 	 	20	 
	10.2 Condemnation
	 	 	21	 
	10.3 Survival
	 	 	21	 

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	 	 	Page	 
	11. DEFAULT
	 	 	21	 
	11.1 Default by the Seller
	 	 	21	 
	11.2 Default by the Purchaser
	 	 	21	 
	 
	 	 	 	 
	12. Miscellaneous
	 	 	22	 
	12.1 Brokers
	 	 	22	 
	12.2 Publicity
	 	 	22	 
	12.3 Notices
	 	 	23	 
	12.4 Waivers
	 	 	24	 
	12.5 Assignment; Successors and Assigns
	 	 	24	 
	12.6 Severability
	 	 	24	 
	12.7 Counterparts
	 	 	25	 
	12.8 Performance on Business Days
	 	 	25	 
	12.9 Attorneys’ Fees
	 	 	25	 
	12.10 Section and Other Headings
	 	 	25	 
	12.11 Time of Essence
	 	 	25	 
	12.12 Governing Law
	 	 	25	 
	12.13 ARBITRATION
	 	 	25	 
	12.14 Like-Kind Exchange
	 	 	28	 
	12.15 Recording
	 	 	28	 
	12.16 Non-liability of Representatives of Seller
	 	 	28	 
	12.17 Non-liability of Representatives of Purchaser
	 	 	28	 
	12.18 Waiver
	 	 	29	 
	12.19 Further Assurances
	 	 	29	 
	12.20 IRS Real Estate Sales Reporting
	 	 	29	 
	12.21 Entire Agreement
	 	 	29	 
	12.22 Interrelation
	 	 	29	 

-iii-

 

PURCHASE AND SALE AGREEMENT 

     THIS PURCHASE AND SALE AGREEMENT is made as of September 1, 2011, by and between CORNERSTONE
REALTY FUND, LLC, a California limited liability company (the “Seller ”), and REXFORD
INDUSTRIAL FUND V, L.P., a Delaware limited partnership (the “Purchaser”).

WITNESSETH: 

     WHEREAS, the Seller is the owner of the Property (this and other capitalized terms used and
not otherwise defined herein shall have the meanings given such terms in Section 1); and

     WHEREAS, the Seller wishes to sell to the Purchaser, and the Purchaser desires to purchase
from the Seller, the Property, subject to and upon the terms and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged,
the Seller and the Purchaser hereby agree as follows:

     1. DEFINITIONS. Capitalized terms used in this Agreement shall have the meanings set
forth below or in the section of this Agreement referred to below:

          1.1 “Agreement” shall mean this Purchase and Sale Agreement, together with any
exhibits and schedules attached hereto, as it and they may be amended from time to time as herein
provided.

          1.2 “Business Day” shall mean any day other than a Saturday, Sunday or any other day
on which banking institutions in the State of California are authorized by law or executive
action to close.

          1.3 “Closing” shall have the meaning given such term in Section 2.2

          1.4 “Closing Date” shall have the meaning given such term in Section 2.2.

          1.5 “Commitment” shall have meaning set forth in Section 3.1.

          1.6 “Deposit” and “Initial Deposit” and “Additional Deposit” shall
have their respective meanings as set forth in Section 2.3.

          1.7 “Escrow Agent” shall have the meaning set forth in Section 2.4.

          1.8 “Existing Surveys” shall mean the existing ALTA survey, if any, and any other
“as-built” survey, for each Property.

          1.9 “Existing Title Policies” shall mean the existing title insurance policy for
each Property.

          1.10 “Grant Deeds” shall have the meaning set forth in Section 4.1(a).

 

 

          1.11 “Improvements” shall mean the Seller’s entire right, title and interest in and to
the existing buildings, fixtures and other structures and improvements situated on, or affixed to,
the Land.

          1.12 “Land” shall mean, the Seller’s entire right, title and interest in and to (a)
the parcel(s) of land described in Exhibit A hereto, together with (b) all easements,
rights of way, privileges, licenses and appurtenances which the Seller may own with respect
thereto.

          1.13 “Leases” shall mean the leases identified in the Rent Roll and any other leases
hereafter entered into in accordance with the terms of this Agreement, and all of Seller’s rights
and interests therein, including Seller’s rights to any tenant deposits held by or for Seller
pursuant to the Leases. Leases shall also include, whether or not identified in the Rent Roll,
Seller’s interest in expired leases previously affecting the Property to the extent Purchaser must
succeed to the rights under such leases in order to enforce the indemnity, defense, and other
obligations of the lessee thereunder with respect to injury to persons or damage to property
(including, without limitation, with respect to hazardous materials or toxic waste).

          1.14 “Other Property” shall mean the Seller’s entire right, title and interest in and
to (a) all fixtures, machinery, systems, equipment and items of personal property owned by the
Seller and attached or appurtenant to, located on and used in connection with the ownership, use,
operation or maintenance of the Land or Improvements, if any, (b) all freely assignable intangible
property owned by the Seller arising from or used in connection with the ownership, use, operation
or maintenance of the Land or Improvements, if any; and (c) all use, occupancy, building and
operating licenses, permits, approvals, and development rights, if any, and (d) all freely
assignable plans and specifications related to the Land and Improvements, if any. Seller shall not
be required to obtain any consents to assignment of the Other Property as a condition to closing,
but Seller shall reasonably cooperate with any requests by Purchaser to seek such consents;
provided that such obligation to cooperate shall not require Seller to pay any consent fees.

          1.15 “Permitted Exceptions” shall mean, collectively, (a) liens for taxes, assessments
and governmental charges not yet due and payable; (b) the Leases, and (c) such other nonmonetary
encumbrances with respect to the Property as may be shown on any supplemental title report which
are not objected to by the Purchaser (or which are objected to, and subsequently waived, by the
Purchaser) in accordance with Section 3.1.

          1.16 “Property” or “Properties” shall mean, collectively, all of the Land, the
Improvements and the Other Property. The Property consists of six (6) industrial
parks. Where applicable, as used herein, the term “Property” shall also mean any one of, or
each, of the Properties.

          1.17 “Purchase Price” shall mean Twenty-Five Million One Hundred Thousand Dollars
($25,100,000.00) in good funds, plus or minus all adjustments, prorations, and credits as provided
in this Agreement, and as may be allocated among the Properties as set forth in Section 2.1 below.

          1.18 “Purchaser” shall have the meaning given such term in the preamble to this
Agreement, together with any permitted successors and assigns.

-2-

 

          1.19 “Rent Roll” shall mean Schedule 1 to this Agreement.

          1.20 “Seller” shall have the meaning given such term in the preamble to this
Agreement, together with any permitted successors and assigns.

          1.21 “Survey” shall have meaning set forth in Section 3.2.

          1.22 “Title Company” shall mean First American Title Insurance Company at the office
set forth in Section 12.3: Attention Lance Capel, Title Officer.

          1.23 “Title Inspection Period” shall have the meaning set forth in
Section 3.1.

     2. PURCHASE AND SALE; CLOSING.

          2.1 Purchase and Sale. In consideration of the payment of the Purchase Price by the
Purchaser to the Seller and for other good and valuable consideration, the Seller hereby agrees
to sell to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, the
Property for the Purchase Price, subject to and in accordance with the terms and conditions of
this Agreement. Purchaser shall have the right, no later than ten (10) days prior to the Closing,
to provide written notice to Seller of Purchaser’s election to allocate a portion of the Purchase
Price to each of the Properties, which allocation shall be: (i) reasonable, (ii) not materially
disproportionate based on the relative value of the Properties, and (iii) reflected in the
Closing statements and other documents to be exchanged, delivered or recorded at Closing.

          2.2 Closing. The purchase and sale of the Property shall be consummated at a closing
(the “Closing” ) to be processed at the offices of the Escrow Agent on or before October 14,
2011. The Closing shall be the date that each of the Grant Deeds for the Properties is
recorded in the applicable County recorder’s office.
All of the Grant Deeds shall be recorded on the same Business Day (California time).
Purchaser shall not have the right under this Agreement to acquire any individual Property or
less than all of Properties, rather, any Closing that occurs shall be with respect to all of the
Properties simultaneously.

          2.3 Payment of Purchase Price.

          (a) Within two (2) Business Days of Opening of Escrow pursuant to Section 2.4,
Purchaser shall deposit in escrow with Escrow Agent (as defined in Section 2.4) as the
initial earnest money deposit the sum of Five Hundred Thousand Dollars ($500,000.00) (the
“Initial Deposit” ) in cash to be held and disbursed by Escrow Agent in accordance with the
remaining provisions of this Agreement including, without limitation, Section 3.3 below.
If Purchaser does not terminate this Agreement on or prior to the date of expiration of the
Property Inspection Period as provided in Section 3.3 below, then on the second Business
Day after expiration of the Property Inspection Period, Purchaser shall deposit with Escrow Agent
an additional Five Hundred Thousand Dollars ($500,000.00) (the “Additional Deposit” ) in
cash to be held and disbursed by Escrow Agent in accordance with the remaining provisions of this
Agreement. The Initial Deposit and Additional Deposit, or so much thereof as may be held at any
time by Escrow, together with all interest earned thereon is referred to herein collectively as the
“Deposit.” In addition to the Initial Deposit, Purchaser shall, concurrently with its
execution of this Agreement, deliver to Seller the amount of One Hundred Dollars ($100.00), which
amount Seller and Purchaser agree has been bargained for as consideration for Seller’s execution

-3-

 

and delivery of this Agreement and Purchaser’s right to inspect the Property. Such sum is in
addition to and independent of any other consideration or payment provided for in this Agreement
and is non-refundable in all events.

          If the Escrow is not opened pursuant to Section 4 on or before the date two (2)
Business Days after the Opening of Escrow and Purchaser is solely responsible for such failure, or
if Purchaser fails to deposit the Initial Deposit or the Additional Deposit on or before the
applicable date specified above, this Agreement and the Escrow shall automatically stand terminated
without further notice in which event Escrow Agent shall return any Deposit to Purchaser and Seller
and Purchaser shall have no further obligations under this Agreement except those that expressly
survive termination hereunder.

               (b) One (1) Business Day prior to the Closing Date, the Purchaser shall deposit in Escrow with
Escrow Agent the balance of the Purchase Price, subject to adjustment as provided in Article
9.

          2.4 Escrow Agent. Purchaser and Seller hereby engage First American Title Insurance
Company (attention: Kathleen Huntsman) at the office set forth in Section 12.4
(“Escrow Agent”) to act as agent for the parties in closing this transaction and carrying
out the terms of this Agreement on the terms and conditions set forth herein. This Agreement
shall constitute escrow instructions to Escrow Agent; provided, however, in the event of any
inconsistency between the provisions hereof and the provisions of any escrow instructions
requested by Escrow Agent, the terms hereof shall govern and control. “Opening of Escrow”
shall mean the date on which Escrow Agent receives one (1) fully executed original counterpart of
this Agreement from Seller and Purchaser together with the Initial Deposit. Escrow Agent shall
give Seller and Purchaser written notice of the date of Opening of Escrow and its signature
hereto indicating its acceptance of the escrow instructions. Escrow and the transaction
contemplated hereby shall close (referred to herein interchangeably as the “Close of
Escrow,” the “Closing,” or by similar words) when all documents and funds necessary
to close this transaction have been received by Escrow Agent and the Grant Deeds conveying title
to the Properties Purchaser has been recorded in accordance with Section 2.2.

     3. TITLE, DILIGENCE MATERIALS, ETC.

          3.1 Title. Escrow Agent is hereby instructed to, within five (5) days after the date
of Opening of Escrow, provide to Purchaser a Commitment for Title Insurance relating to each
Property (which Commitment, together with any amendments thereto is referred to as the
“Commitment”), disclosing all matters of record which relate to the title to each Property
and Escrow Agent’s requirements for both closing the escrow created by this Agreement and issuing
the policy of title insurance described in Section 4.2. Escrow Agent shall also
simultaneously cause legible copies of all instruments and other documents referred to in the
Commitment (collectively, the “Underlying Documents”) to be furnished to Purchaser. On or
prior to the date ten (10) days following its receipt of the Commitment and Underlying Documents,
(the “Title Inspection Period”), the Purchaser shall give the Seller written notice of
any title exceptions (other than Permitted Exceptions) set forth on the Commitment as to which
the Purchaser objects, in its sole and absolute discretion. The Seller shall have the right, but
not the obligation, to attempt to remove, satisfy or otherwise cure any exceptions to title to
which the Purchaser so objects; provided, however, that Seller shall be obligated to remove,

-4-

 

satisfy or otherwise eliminate, on or before Closing, all monetary liens (other than liens for
property taxes not yet due and payable); provided, further, however, that any cure or removal by
endorsement shall be subject to Purchaser’s approval, which Purchaser may withhold or grant in its
reasonable discretion. If Seller elects to take such actions as
may be required to cause such exceptions as to which Purchaser has objected to be removed from the
Commitment, the Seller shall, on or before the fifth (5th) Business Day following delivery of
Purchaser’s objections, give the Purchaser written notice thereof; it being understood and agreed
that the failure of the Seller to timely give such written notice as to any matters objected to by
Purchaser shall be deemed an election by the Seller not to remedy such matters. If the Seller
elects (or is deemed to have elected) not to cure any title defects to which the Purchaser has so
objected, the Purchaser may elect (i) to terminate this Agreement, in which case Purchaser shall
receive a prompt return of the Deposit and Purchaser and Seller shall have no further obligations
to each other under this Agreement except for those obligations hereunder which expressly survive
such termination, or (ii) to consummate the transactions contemplated hereby, notwithstanding such
title defect, without any abatement or reduction in the Purchase Price on account thereof
(whereupon such objected to exceptions or matters shall be deemed to be Permitted Exceptions). The
Purchaser shall make any such election by written notice to the Seller given on or prior to the
fifth (5th) Business Day after delivery of the Seller’s notice of its unwillingness or inability to
cure (or deemed election not to cure) such defect and time shall be of the essence with respect to
the giving of such notice. Failure of the Purchaser to give such notice shall be deemed an election
by the Purchaser to proceed in accordance with clause (ii) above. Escrow Agent shall also promptly
deliver to Purchaser any updated or revised Commitment, and the corresponding Underlying Documents,
which reflect any new lien, encumbrance, or other exception to title not disclosed in a Commitment
previously received by Purchaser (a “New Title Matter”), as to which the same procedures,
rights and other provisions set forth above in this Section 3.1 shall apply, except that
the Title Inspection Period with respect to any such New Title Matter shall be five (5) days.
Purchaser shall have no right to disapprove any survey inspection after the expiration of the Title
Inspection Period, except to the extent such survey inspection pertains to a New Title Matter as to
which Purchaser may exercise its disapproval right as provided in this Section 3.1.

          3.2 “Survey”. Seller shall, within five (5) days after the Opening of Escrow, provide
Purchaser with any Existing Surveys to the extent such exist and are in Seller’s possession or
control. Purchaser may, at its cost, cause any such survey to be updated, or, in the event there is
no Existing Survey, cause a new survey to be prepared (collectively, the “Survey”).
Purchaser shall have until (i) the end of the Title Inspection Period to object in writing to any
matter shown in the Survey of any individual property as to which Seller has provided Purchaser
with a Survey or (ii) the end of the Property Inspection Deadline to object in writing to any
matter shown in the Survey of any individual property as to which Seller has not provided Purchaser
with a Survey; except in each case as to matters disclosed in the Survey due to New Title Matters
(in which case the time periods applicable to New Title Matters shall govern). If Purchaser fails
to object within such time period, the legal description of the Property and any other matters
shown in the Survey shall be deemed approved by Purchaser. If Purchaser does object in writing to
any matter shown in the Survey, Purchaser shall specify the matter objected to in the Title
Objection Notice.

          3.3 Property Documents. Purchaser hereby acknowledges that Seller has delivered to
Purchaser the Rent Roll and true and correct copies of documents set forth on

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Schedule 2 (the “Property Documents”). Seller may provide such copies to
Purchaser in electronic format. Purchaser acknowledges and agrees that Seller’s Property
Documents will be provided by Seller to accommodate and facilitate Purchaser’s investigations
relating to the Land and the Property and that, except as expressly set forth herein, Seller
makes no representations and warranties of any kind regarding the accuracy or thoroughness of the
information contained in Seller’s Property Documents and Purchaser shall not be entitled to rely
on the Property Documents. Purchaser must perform its own due diligence investigation of the
Properties.

          Subject to the terms and conditions below, Purchaser shall have until 5:00 p.m. California
time on  September 30, 2011 (the “Property Inspection Period”) to review the
Property Documents and perform a feasibility study with respect to the Property which may include
market and engineering studies, leasing and financial investigations, soil tests, drainage studies,
confirmation that all utilities including water, electric, gas, sewer and telephone are available
to the Property, environmental investigations, confirmation of zoning, and/or such other tests,
studies or investigations with respect to the Property as Purchaser deems appropriate in its sole
and absolute discretion. Subject to the rights of tenants of the Property under their respective
leases and with reasonable advance notice to Seller, Seller shall cause access to the Property to
be available to Purchaser and the persons so designated by it during the regular business hours of
the respective Property, and shall afford them the opportunity to inspect and perform any tests
upon the Property that Purchaser deems necessary or appropriate to determine whether the Property
is suitable for Purchaser’s purposes, in Purchaser’s sole and absolute discretion. At Seller’s
request, Seller and/or the involved tenant or its designees shall be entitled to accompany
Purchaser during any such inspection or contact with any tenant. Purchaser shall have the right to
conduct a Phase I environmental site assessment and, with Seller’s prior written consent (to be
given or withheld in Seller’s sole and absolute discretion) a Phase II environmental site
assessment (including soils borings, soil sampling and, if relevant, ground water testing, and
invasive sampling of building materials with respect to the Premises). Purchaser’s activities at
the Property shall be conducted in such a manner so as not to unreasonably interfere with the
occupancy of tenants or their employees, licensees or invitees. Purchaser shall have the right to
conduct tenant interviews with Seller’s prior consent, not to be unreasonably withheld, but with
Purchaser to be accompanied by a Seller representative if required by Seller. Notwithstanding the
foregoing, Purchaser shall not conduct any intrusive testing of any of the Properties without the
prior written consent (deemed or otherwise) of Seller, not to be unreasonably withheld.

          If Purchaser, after conducting such inspections, investigations, and tests, determines that
the Property or any part thereof or the Property Documents, or any other aspect of the Property
whatsoever, are not, in Purchaser’s sole and absolute discretion, satisfactory for any reason, or
no reason at all, then Purchaser may elect, at
any time on or prior to the date of expiration of the Property Inspection Period, to cancel
this Agreement and the Escrow by written notice to Seller and Escrow Agent, in which case Purchaser
shall receive a prompt return of the Deposit and Purchaser and Seller shall have no further
obligations to each other under this Agreement except for those obligations hereunder which
expressly survive such termination. Upon termination by Purchaser, but not as a condition precedent
to the return of the Deposit to Purchaser, Seller shall have the right to demand from Purchaser and
pay the reasonable copying costs for copies of all documents obtained by or for Purchaser with
respect to its investigations of the Property, except for such document which are of an internal
and proprietary nature or the

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dissemination of which has been prohibited by the third-party preparer thereof. Notwithstanding
anything else contained herein to the contrary, if Purchaser has not provided Seller with a written
notice of disapproval of the Property or Property Documents prior to the end of the Property
Inspection Period, the Property and Property Documents shall be deemed approved by Purchaser. When
Purchaser gives Seller written notice of approval of its due diligence or is deemed to have given
Seller notice of such approval, the Deposit shall be non-refundable to Purchaser except for a
default by Seller (or a casualty or condemnation event, which shall be governed by other provisions
of this Agreement). If Purchaser cancels this Agreement as provided in this Section 3.3,
then (i) Escrow Agent shall return to Seller all documents Seller deposited with Escrow Agent in
connection with the Escrow; (ii) Escrow Agent shall return to Purchaser all documents Purchaser
deposited with Escrow Agent in connection with the Escrow; and (iii) Escrow Agent shall return the
Deposit to Purchaser. Upon such event, this Agreement and the Escrow shall be deemed null and void
and neither party shall have any further rights or obligations to the other hereunder or on account
hereof, except for those which by the provisions of this Agreement are expressly stated to survive
or occur at termination of this Agreement. If Purchaser does not elect to cancel this Agreement as
provided in this Section 3.3, Purchaser shall be deemed to have approved all matters
concerning the Property and elected to proceed with the acquisition of the Property in accordance
with and subject to the terms and conditions of this Agreement.

     Purchaser or Purchaser’s representatives, agents and/or consultants shall keep in full force
and effect general liability insurance from an insurance company and in form and substance
reasonably approved by Seller, naming Seller as an additional insured during Purchaser’s or
Purchaser’s agents, representatives and/or consultants entries and inspections of the Property, as
follows:

     A. Commercial general liability insurance with combined single limits of not less than
$2,000,000.00 per occurrence for bodily injury and property damage,
containing an endorsement insuring against damage to the Property and to or from underground
utilities.

     B. Any contractor hired to perform environmental tests to the Property shall
maintain errors and omissions or professional liability insurance covering injury or damage arising
out of the rendering or failing to render professional services with limits of at least
$2,000,000.00 per claim.

     C. All insurance maintained under this Section 3.3 shall be procured from insurance
companies reasonably satisfactory to Seller.

     D. Notwithstanding the foregoing, Purchaser has previously provided Seller with a Certificate
of Insurance evidencing Purchaser’s coverages by Federal Insurance Company which certificate
identifies Seller as an additional insured. Seller hereby approves the coverages and insurance
company denoted in said Certificate of Insurance.

Any damage, disturbance or other disruption of the Improvements or the Land or other portion of the
Property caused by Purchaser or its employees, contractors or agents shall be promptly repaired
and/or placed in the condition existing prior to disturbance thereof by Purchaser or its employees,
contractors and agents upon completion of any activities by such parties on or with respect to the
Property.

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          3.4 Inspection Indemnity. Purchaser shall indemnify, defend and hold harmless
Seller for, from and against any and all losses, defaults, liabilities, causes of action,
demands, claims, damage or expenses of every kind including, without limitation, reasonable
attorneys’ fees and court costs, to the extent arising as a result of each of the inspections by
Purchaser and/or its employees, agents and contractors, and from and
against any mechanic’s liens
or claims of lien resulting therefrom (“Inspection Indemnity”); provided, however, that
the Inspection Indemnity shall not include any pre-existing conditions at the Property except to
the extent exacerbated by Purchaser. The Inspection Indemnity shall survive the Close of Escrow
or any termination or cancellation of this Agreement, and shall not be subject to or limited by,
the provisions of Section 12.13 hereof.

     4. CONDITIONS
TO THE PURCHASER’S OBLIGATION TO CLOSE. The obligation of the Purchaser
to acquire the Property shall be subject to the satisfaction of the following conditions precedent
on and as of the Closing Date:

          4.1 Closing Documents. The Seller and Purchaser as applicable shall have delivered,
or cause to have been delivered, to the Escrow Agent the following:

               (a) A
deed to each Property on the Escrow Agent’s standard form for the applicable County in
which the Property is located (the “Grant Deeds” ), duly executed and acknowledged by the
Seller, conveying title to the Property, free from all liens and encumbrances other than
non-monetary liens and encumbrances of record, liens for taxes, assessments and governmental
charges not yet due and payable; such other matters that would be disclosed by an ALTA Survey. The
Grant Deeds shall provide for documentary transfer statements to not be disclosed of record;

               (b) An assignment by the Seller and an assumption by the Purchaser, in the form set forth on
Exhibit “C” attached hereto (“Assignment of Leases”), duly executed by the Seller
and the Purchaser, of all of the Seller’s right, title interest obligations and liabilities in, to
and under the Leases;

               (c) Written
notice to each of the tenants of the Property in the form set forth on Exhibit “ E” attached hereto ( “Notices to Tenants” ) executed by Seller and Purchaser which
notifies the tenants to pay to the Purchaser all rent and other payments made by the tenants under
the Leases from and after the Closing Date;

               (d) A general assignment by the Seller and an assumption by the Purchaser in the form set
forth on  Exhibit “B” attached hereto (“General Assignment”), duly executed by the
Seller and the Purchaser, of all of the Seller’s right, title interest obligations and liabilities,
if any, in, to and under all freely transferable Other Property;

               (e) A bill of sale executed by the Seller, without warranty of any kind except as expressly
set forth in this Agreement, in the form set forth on Exhibit “D” attached hereto (“Bill of Sale” ), with respect to any personal property owned by the Seller, situated at the
Property owned by Seller and used in connection with the Property (it being understood and agreed
that no portion of the Purchase Price is allocated to personal property);

               (f) To the extent the same are in the Seller’s possession or control, copies of all Property
Documents;

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               (g) To
the extent the same are in the Seller’s possession or control, duly executed original
copies of the Leases;

               (h) A closing statement showing the Purchase Price, apportionments and fees, and costs and
expenses paid in connection with the Closing, all according to the applicable provisions of this
Agreement; provided, however, that neither Seller nor Purchaser shall be entitled to review the
other’s closing statement; and

               (i) Such other conveyance documents, certificates, deeds and other instruments as the Escrow
Agent or the Title Company may reasonably require and as are customary in like transactions in
sales of property in similar transactions.

          4.2 Title Policy. The Title Company shall be prepared to issue, upon payment of the
title premium, one or more ALTA title insurance policies in the aggregate amount of the Purchase
Price (as same may be allocated as provided in Section 2.1, above), insuring title to each
Property is vested in the Purchaser or its permitted designee or assignee, subject only to the
Permitted Exceptions. Seller shall not be responsible for payment of any additional title premium
due to Purchaser’s allocation of the Purchase Price between the Properties in a manner other than
as set forth in Section 2.1.

          4.3 Other Conditions.

               (a) All representations and warranties of the Seller herein shall be true, correct and
complete in all material respects on and as of the Closing Date and the Seller shall not be in
default under this Agreement.

               (b) No later than five (5) Business Days prior to the Closing Date, Seller shall have obtained
estoppel certificates from tenants comprising no less than seventy percent (70%) of the square
footage of the Improvements of each Property (measured as of the Opening of Escrow) and including,
in any event, tenant estoppels from every tenant under a Lease covering 4,000 or more rentable
square feet (each, a “Major Tenant” and collectively, the “Major Tenants”), in the
form prescribed by the particular tenant’s corresponding Lease, and if (and only if) no estoppel
certificate form is prescribed by the particular Lease, then in a form attached hereto as
Exhibit “F”, dated no earlier than thirty (30) days prior to Closing (the “Tenant
Estoppels”). Tenant Estoppels presented to Purchaser and not objected to within three (3)
Business days shall be deemed approved. Such Tenant Estoppels shall be consistent with each
corresponding Lease, and shall not reveal any default by landlord or tenant, any right to offset
rent by the tenant or any claim of the same. Notwithstanding the foregoing, any modification by a
tenant to (i) to a form of tenant estoppel certificate to conform a statement to the applicable
Lease or (ii) to the form of Estoppel Certificate attached hereto as Exhibit “F” to (a) qualify
paragraph 7 thereof by such tenant’s knowledge or (b) to eliminate (1) the last sentence of
paragraph 4, (2) the phrase “has been no material adverse change in the financial condition of
Tenant, and there” from paragraph 11, (3) paragraphs 12, 14, 15, or 16, shall not be grounds for
disapproval by Purchaser. Seller shall make reasonable efforts to obtain and deliver the Tenant
Estoppels required under this Section 4.3(b), provided, however, in no event shall Seller
be deemed in default under this Agreement in the event of Seller’s inability to timely provide all
of the required Tenant Estoppels hereunder, and Purchaser’s sole remedy against

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Seller in
the event of Seller’s inability to provide the required Tenant Estoppels shall be to
terminate this Agreement, receive a refund of its Deposit.

               (c) At such time as Seller delivers to Purchaser Tenant Estoppels from tenants comprising no
less than seventy percent (70%) of the square footage of the Improvements of each Property
(measured as of the Opening of Escrow), including in any event from all Major Tenants, in the form
and satisfying the requirements provided above (collectively, the “Minimum Required Tenant
Estoppels”), and same have not been disapproved by Purchaser as provided above, then the
Purchaser’s condition to Closing set forth in this Section 4.3(b) shall automatically be
deemed satisfied, and Seller shall have no obligation to execute any substitute Tenant Estoppels
for any tenant that has not delivered an Estoppel Certificate, or for any Estoppel Certificate that
has been disapproved by Purchaser. In the event that Seller is unable, despite its reasonable
efforts to provide the Minimum Required Tenant Estoppels to Purchaser on or before the fifth (5th)
Business Day prior to Closing, then Seller shall have the right in its sole discretion (but not the
obligation) to satisfy the condition set forth in this Section 4.3(b) by providing
substitute Estoppel Certificate(s) executed by Seller, and in the exact form as would be required
per the foregoing provisions had the tenant signed such estoppel certificate (“Substitute
Estoppel Certificate”), for any tenants who do not provide a Estoppel Certificate or whose
Estoppel Certificate has been disapproved by Purchaser, provided, however, that Seller’s right to
provide a Substitute Estoppel Certificate shall not apply to any Major Tenant, nor shall Seller be
permitted to provide Substitute Estoppel Certificates for more than twenty percent (20%) of the
square footage of the Improvements of any Property (measured as of the Opening of Escrow). Seller
shall be automatically released from liability for any certification in any such Substitute
Estoppel Certificate to the extent such certification is ultimately made to Purchaser by an
Estoppel Certificate executed by the applicable tenant, whether prior to or following the Close of
Escrow, provided such tenant estoppel certificate is in a form which would have satisfied the
requirements of this Section 4.3(b) had it been timely delivered to Purchaser.

               (d) Seller shall not have received written notice of any material monetary or non-monetary
default by any Major Tenant between the expiration of the Property Inspection Period and the
Closing.

               (e) Purchaser shall not have terminated this Agreement in accordance with Section 10.1
or Section 10.2 below.

     5. CONDITIONS
TO SELLER’ OBLIGATION TO CLOSE. The obligation of the Seller to convey
the Property to the Purchaser is subject to the satisfaction of the following conditions precedent
on and as of the Closing Date:

          5.1 Purchase Price. The Purchaser shall deliver to the Escrow Agent the Purchase
Price payable hereunder (less the Deposit which shall be applied to the
Purchase Price), subject to the adjustments set forth in Section 2.3, together with
any closing costs to be paid by the Purchaser under Section 9.2.

          5.2 Closing Documents. The Purchaser shall have delivered to the Escrow Agent duly
executed and acknowledged counterparts of the documents described in Section 4.1, where
required.

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          5.3 Other Conditions. All representations and warranties of the Purchaser
herein shall be true, correct and complete in all material respects on and as of the Closing Date
and the Purchaser shall not be in default under this Agreement.

     6. REPRESENTATIONS AND WARRANTIES OF SELLER. To induce the
Purchaser to enter into this Agreement, the Seller represents and warrants to the Purchaser as of
the date of this Agreement and as of Closing, except as qualified by Schedule 3, as follows:

          6.1 Status and Authority of the Seller. The Seller is duly organized, validly
existing and in good standing under the laws of its state of organization or formation, and has
all requisite power and authority under its organizational documents to enter into and perform
its obligations under this Agreement and to consummate the transactions contemplated hereby.

          6.2 Action of the Seller. The Seller has taken all necessary action to authorize
the execution, delivery and performance of this Agreement, and upon the execution and delivery of
any document to be delivered by the Seller on or prior to the Closing Date, this Agreement and
such document shall constitute the valid and binding obligation and agreement of the Seller,
enforceable against the Seller in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

          6.3 No Violations of Agreements. Neither the execution, delivery or performance of
this Agreement by the Seller, nor compliance with the terms and provisions hereof, will result in
any breach of the terms, conditions or provisions of, or conflict with or constitute a default
under, or result in the creation of any lien, charge or encumbrance upon the Property pursuant to
the terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness or any other
agreement or instrument by which the Seller is bound.

          6.4 Litigation. Seller has not received written notice that, nor to Seller’s actual
knowledge is there, any investigation, action, claim or proceeding is pending, asserted, or
threatened, which (i) questions the validity of this Agreement or any action taken or to be taken
pursuant hereto, (ii) involves condemnation or eminent domain proceedings against the Property or
any portion thereof or (iii) if adversely determined, would have a material adverse affect upon
the use or value of the Property or any portion thereof.

          6.5 Existing Leases. Subject to Section 8.1, other than the Leases listed in the
Rent Roll, the Seller has not entered into any written contract or agreement with respect to the
use or occupancy of the Property that will be binding on the Purchaser after the Closing. The
copies of the Leases and all tenant correspondence files heretofore delivered by the Seller to
the Purchaser are true, correct and complete copies thereof. The information set forth in the
Rent Roll is true, correct and complete in all material respects. To Seller’s knowledge, neither
Seller nor any tenant is in default under an applicable Lease which default is not denoted in the
Rent Roll delivered to Purchaser.

          6.6 Agreements. Other than as set forth in the Property Documents, the Seller has
not entered into any contract or agreement with respect to the Property which will be binding on
the Purchaser after the Closing other than contracts and agreements being assumed

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by the Purchaser or which are terminable upon thirty (30) days notice without payment of premium
or penalty.

          6.7 Not a Foreign Person. The Seller is not a “foreign person” within the meaning
of Section 1445 of the United States Revenue Code of 1986, as amended, and the regulations
promulgated thereunder.

          6.8 Prohibited Person. For purposes of this Agreement, a “Prohibited Person” means
any of the following: (i) a person or entity that is listed in the Annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224 on Terrorist Financing (effective
September 24, 2001) (herein called the “Executive Order” ); (ii) a person or entity owned or
Controlled by, or acting for or on behalf of any person or entity that is listed in the Annex to,
or is otherwise subject to the provisions of, the Executive Order; (iii) a person or entity that
is named as a “specifically designated national” or “blocked person” on the most current list
published by the U.S. Treasury Department’s Office of Foreign
Assets Control (herein called “OFAC”) at its official website, http://www.treas.gov/offices/enforcement/ofac; (iv) a person or entity
that is otherwise the target of any economic sanctions program currently administered by OFAC; or
(v) a person or entity that is affiliated with any person or entity identified in the foregoing
clauses (i), (ii), (iii), or (iv). Seller represents and warrants to Purchaser, knowing that
Purchaser is relying on such representation and warranty, that Seller is not a Prohibited Person.

          6.9 No Approval. No authorization, consent, or approval of any governmental
authority (including courts) is required for the execution and delivery by Seller of this
Agreement or the performance of its obligations hereunder.

          6.10 Bankruptcy. Seller has not (a) made a general assignment for the benefit of
creditors, (b) filed any voluntary petition in bankruptcy or suffered the filing of an
involuntary petition by Seller’s creditors, (c) suffered the appointment of a receiver to take
possession of all or substantially all of Seller’s assets, (d) suffered the attachment or other
judicial seizure of all, or substantially all, of Seller’s assets, (e) admitted in writing its
inability to pay its debts as they come due, or (f) made an offer of settlement, extension or
composition to its creditors generally, nor does Seller have actual knowledge of any of the
foregoing events having occurred with respect to any tenant (or subtenant) under any Leases.

          6.11 No Notices. Seller has not received any written notice from any governmental
agency requiring the correction of any condition with respect to the Property, or any part
thereof, by reason of a violation of any applicable federal, state, county or municipal law,
code, rule or regulation (including those respecting the Americans With Disabilities Act or any
law of regulation respecting the presence of hazardous materials or toxic waste on the Property),
which has not been cured or waived.

          6.12 Cause to be Untrue. Seller will not take or cause to be taken any intentional
action which would cause any of the representations or warranties contained in this Agreement to
be untrue as of the Close of Escrow.

          The representations and warranties made in this Agreement by the Seller shall be continuing
and shall be deemed remade by the Seller as of the Closing Date, with the same force

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and effect as if made on, and as of, such date. All representations and warranties made in this
Agreement by the Seller shall survive the Closing for a period of one (1) year, and upon expiration
shall be of no further force or effect except to the extent that with respect to any particular
alleged breach, the Purchaser files a legal action in a court with appropriate jurisdiction for
breach of the representations and warranties within said one (1) year period. References in this
Article 6 to the “actual knowledge” of Seller shall refer only to the actual knowledge of Jon
Carley, who Seller hereby represents to be, and who at Closing shall be, the person most
knowledgeable and qualified to make the foregoing representations and warranties on behalf of
Seller (which knowledge shall not include any imputed or constructive knowledge), and shall not be
construed to refer to the knowledge of any other officer, agent or employee of Seller or any
affiliate thereof or to impose upon such designated individuals any duty to investigate the matter
to which such actual knowledge, or the absence thereof, pertains or impose any personal liability
on such individual. No claim for a breach of any representation or warranty of Seller shall be
actionable or payable (a) if the breach in question results from or is based on a condition, state
of facts or other matter which was disclosed by Seller to Purchaser in writing prior to Closing;
and (b) unless the valid claim for any single or aggregate claimed breach(s) is(are) more than
Twenty Five Thousand and No/100 Dollars ($25,000.00), in which case Purchaser’s claim shall include
the first dollar). In no event shall the total liability to Purchaser for all breaches of all
representations and warranties of Seller in this Agreement exceed One Million Dollars
($1,000,000..00) for each of the six industrial parks that comprise the Property and Five Million
Dollars ($5,000,000.00) in the aggregate for the entire Property. If
prior to Closing, Seller’s
representations, as made as of the Effective Date, are determined to be untrue in any material
respect as of the Effective Date or if Seller’s representations, as remade on the Closing Date,
shall result in Seller’s Representations made as of the Effective Date being untrue in any material
respect as of the Closing Date, then Purchaser may, at Purchaser’s option, as its sole and
exclusive remedy, terminate this Agreement by notice in writing to Seller, in which event Escrow
Agent shall promptly refund the entire Deposit to Purchaser.

          6.16 AS-IS. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO
BE DELIVERED TO THE PURCHASER AT THE CLOSING, THE SELLER HAS NOT MADE, AND THE PURCHASER HAS NOT
RELIED ON, ANY INFORMATION, PROMISE, REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING
THE PROPERTY, WHETHER MADE BY THE SELLER, ON THE SELLER’S BEHALF OR OTHERWISE, INCLUDING, WITHOUT
LIMITATION, THE PHYSICAL CONDITION OF THE PROPERTY, THE FINANCIAL CONDITION OF THE TENANTS UNDER
THE LEASES, TITLE TO OR THE BOUNDARIES OF THE PROPERTY, PEST CONTROL MATTERS, SOIL CONDITIONS,
THE PRESENCE, EXISTENCE OR ABSENCE OF HAZARDOUS WASTES, TOXIC SUBSTANCES OR OTHER ENVIRONMENTAL
MATTERS, COMPLIANCE WITH BUILDING, HEALTH, SAFETY, LAND USE AND ZONING LAWS, REGULATIONS AND
ORDERS, STRUCTURAL AND OTHER ENGINEERING CHARACTERISTICS, TRAFFIC PATTERNS, MARKET DATA, ECONOMIC
CONDITIONS OR PROJECTIONS, HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TAX
CONSEQUENCES, LATENT OR PATENT PHYSICAL DEFECTS OR CONDITIONS, UTILITIES, OPERATING HISTORY OR
PROJECTIONS, VALUATION,
GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS.

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FURTHERMORE, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE DELIVERED TO
THE PURCHASER AT THE CLOSING, PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT
LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS
OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT
LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR
FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY, REAL ESTATE BROKER OR AGENT REPRESENTING OR
PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN
WRITING AND ANY OTHER INFORMATION PERTAINING TO THE PROPERTY OR THE MARKET AND PHYSICAL
ENVIRONMENTS IN WHICH THEY ARE LOCATED. THE PURCHASER ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY
PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE DELIVERED TO THE PURCHASER AT THE CLOSING, (I)
THE PURCHASER HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF RELYING UPON ITS OWN
INVESTIGATION OR THAT OF ITS CONSULTANTS WITH RESPECT TO THE PHYSICAL, ENVIRONMENTAL, ECONOMIC AND
LEGAL CONDITION OF THE PROPERTY AND (II) THE PURCHASER IS NOT RELYING UPON THE PROPERTY DOCUMENTS
OR ANY STATEMENTS, REPRESENTATIONS OR WARRANTIES OF ANY KIND, OTHER THAN THOSE SPECIFICALLY SET
FORTH IN THIS AGREEMENT OR IN ANY DOCUMENT TO BE DELIVERED TO THE PURCHASER AT THE CLOSING, MADE.
THE PURCHASER HAS INSPECTED THE PROPERTY AND IS FULLY FAMILIAR WITH THE PHYSICAL CONDITION THEREOF
AND, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES MADE IN THIS AGREEMENT, SHALL PURCHASE THE
PROPERTY IN ITS “AS IS”, “WHERE IS” AND “WITH ALL FAULTS” CONDITION ON THE CLOSING DATE.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, IN THE EVENT THAT PURCHASER HAS ACTUAL
KNOWLEDGE OF THE DEFAULT OF SELLER (A “KNOWN DEFAULT”), BUT NONETHELESS ELECTS TO CONSUMMATE THE
TRANSACTIONS CONTEMPLATED HEREBY AND PROCEEDS TO CLOSING, THEN THE RIGHTS AND REMEDIES OF PURCHASER
SHALL BE WAIVED WITH RESPECT TO SUCH KNOWN DEFAULT UPON THE CLOSING AND SELLER SHALL HAVE NO
LIABILITY WITH RESPECT THERETO. EXCEPT IN THE EVENT OF SELLER’S FRAUD, AND EXCEPT AS EXPRESSLY
PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE DELIVERED TO THE PURCHASER AT THE CLOSING,
FROM AND AFTER THE CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT
LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE
BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE
IRREVOCABLY AND UNCONDITIONALLY WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S MEMBERS
OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, CAUSES OF ACTION EXCEPT FOR FRAUD AND

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SELLER’S OBLIGATIONS UNDER THIS AGREEMENT OR ANY DOCUMENT DELIVERED AT THE CLOSING
(INCLUDING CAUSES OF ACTION IN TORT OTHER THAN FRAUD), LOSSES, DAMAGES, LIABILITIES, COSTS AND
EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR
UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S MEMBERS,
OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT
OF THE PROPERTY ITS OPERATION ANY WAY. IN CONNECTION WITH THE FOREGOING, PURCHASER EXPRESSLY
WAIVES THE BENEFITS OF ANY PROVISION OR PRINCIPLE OF FEDERAL STATE OR LOCAL LAW OR REGULATION
THAT MAY LIMIT THE SCOPE OR EFFECT OF THE FOREGOING WAIVER AND RELEASE INCLUDING, WITHOUT
LIMITATION, THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES: “A GENERAL
RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR
HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR” OR EQUIVALENT LAW OF ANY JURISDICTION, TO THE
EXTENT APPLICABLE.

     This release by Purchaser shall constitute a complete defense to any claim, cause of action,
defense, contract, liability, indebtedness or obligation released pursuant to this release. Nothing
in this release shall be construed as (or shall be admissible in any legal action or proceeding as)
an admission by Seller or any other released party that any defense, indebtedness, obligation,
liability, claim or cause of action exists which is within the scope of those hereby released.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Purchaser’s Initials 	 
	 	 	 
	 

     7. REPRESENTATIONS AND WARRANTIES OF PURCHASER. To induce the Seller to enter into
this Agreement, the Purchaser represents and warrants to the Seller as follows:

          7.1 Status and Authority of the Purchaser. The Purchaser is duly organized, validly
existing and in good standing under the laws of its state of organization or formation, and has
all requisite power and authority under its charter documents to enter into and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby.

          7.2 Action of the Purchaser. The Purchaser has taken all necessary limited liability
company action to authorize the execution, delivery and performance of this Agreement, and upon
the execution and delivery of any document to be delivered by the Purchaser on or prior to the
Closing Date, this Agreement and such document shall constitute the valid and binding obligation
and agreement of the Purchaser, enforceable against the Purchaser in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws of general application affecting the rights and remedies of creditors.

- 15 -

 

          7.3 No Violations of Agreements. Neither the execution, delivery or
performance of this Agreement by the Purchaser, nor compliance with the terms and provisions
hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or
constitute a default under, or result in the creation of any lien, charge or encumbrance upon any
property or assets of the Purchaser pursuant to the terms of any indenture, mortgage, deed of
trust, note, evidence of indebtedness or any other agreement or instrument by which the Purchaser
is bound.

          7.4 Litigation. Except as set forth on Schedule 3 the Purchaser has received no
written notice that any investigation, action or proceeding is pending or threatened which
questions the validity of this Agreement or any action taken or to be taken pursuant hereto.

          7.5 Prohibited Person. Purchaser represents and warrants to Seller, knowing that
Seller is relying on such representation and warranty, that Purchaser is not a Prohibited Person.

          7.6 No Approvals. No authorization, consent, or approval of any governmental
authority (including courts) is required for the execution and delivery by Purchaser of this
Agreement or the performance of its obligations hereunder.

          7.7 Bankruptcy. Purchaser has not (a) made a general assignment for the benefit of
creditors, (b) filed any voluntary petition in bankruptcy or suffered the filing of an
involuntary petition by Purchaser’s creditors, (c) suffered the appointment of a receiver to take
possession of all or substantially all of Purchaser’s assets, (d) suffered the attachment or
other judicial seizure of all, or substantially all, of Purchaser’s assets, (e) admitted in
writing its inability to pay its debts as they come due, or (f) made an offer of settlement,
extension or composition to its creditors generally.

          The representations and warranties made in this Agreement by the Purchaser shall be continuing
and shall be deemed remade by the Purchaser as of the Closing Date with the same force and effect
as if made on, and as of, such date. All representations and warranties made in this Agreement by
the Purchaser shall survive the Closing for a period of one (1) year, and upon expiration shall be
of no further force or effect except to the extent that with respect to any particular alleged
breach, the Seller files a legal action in a court with appropriate jurisdiction for breach of
Purchaser’s representations and warranties prior to the expiration of said period.

     8. COVENANTS OF THE SELLER. The Seller hereby covenants with the
Purchaser between the date of this Agreement and the Closing Date or earlier termination of the
Agreement as follows:

          8.1 Approval of Leasing. Following the execution of this Agreement, Seller will not
extend, amend or terminate any existing Lease, or enter into any new Lease without providing
Purchaser the following: (a) receiving Purchaser’s prior written (e-mail delivery is acceptable)
approval which may be withheld in Purchaser’s reasonable discretion. Purchaser agrees to give
Seller written notice of approval or disapproval of a proposed amendment or termination of a
Lease, or new Lease within two (2) business days after Purchaser’s receipt of Seller’s written
request therefor, which request must be accompanied by all material supporting documentation,
including, without limitation, letters of intent, broker’s commissions, tenant

-16-

 

improvement allowances, cancellation fees and any tenant financial information to the extent in
Seller’s possession; provided, however, that Seller shall also provide Purchaser with a copy of
the applicable Lease for any Major Tenant. If Purchaser does not respond to Seller’s request
within such two (2) business day time period, then Purchaser will be deemed to have disapproved
such amendment, termination or new Lease.

          8.2 Operation of Property. To continue to operate the Property substantially
consistent with past practices.

          8.3 Compliance with Laws. To comply in all material respects with (i) all laws,
regulations and other requirements from time to time applicable of every governmental body having
jurisdiction of the Property, or the use or occupancy thereof, and (ii) all material terms,
covenants and conditions of all agreements affecting the Property.

          8.4 Compliance with Agreements. To comply with each and every term, covenant and
condition contained in the Leases and any other document or agreement affecting the Property.

          8.5 Notice of Material Changes or Untrue Representations. Upon learning of any
material adverse change affecting the Property or any tenant under any Lease or any event or
circumstance which makes any representation or warranty of the Seller to the Purchaser under this
Agreement untrue or misleading, promptly to notify the Purchaser thereof in writing.

          8.6 Insurance. To maintain, or cause to be maintained, all existing property
insurance relating to the Property.

          8.7 Cooperation. The Purchaser and the Seller shall reasonably cooperate in
complying with the requirements under the Leases in connection with the transfer and assignment
of the Property and the Leases to the Purchaser.

     9. APPORTIONMENTS.

          9.1 Real Property Apportionments.

               (a) The following items shall be apportioned at the Closing as of the close of business on the
day immediately preceding the Closing Date:

                    (i) to the extent same have been paid to Seller as of the Closing Date, monthly Rents that are
not delinquent, operating costs, taxes and other fixed charges payable under the Leases;

                    (ii) to the extent same have been paid to Seller as of the Closing Date, percentage rents and
other unfixed charges payable under the Leases;

                    (iii) fuel, electric, water and other utility costs, unless Purchaser elects to terminate
service or otherwise transfer service to its own name, in which case there shall be no
apportionment of such costs through Escrow at Closing;

-17-

 

                    (iv) municipal assessments and governmental license and permit fees;

                    (v) real estate taxes and assessments other than special assessments;

                    (vi) water rates and charges;

                    (vii) sewer and vault taxes and rents; and

                    (viii) all other items of income and expense normally apportioned in sales of property in
similar situations in the jurisdiction where each Property is located.

          If any of the foregoing cannot be or are otherwise not apportioned at the Closing because of
the unavailability of the amounts which are to be apportioned, such items shall be apportioned on
the basis of a good faith estimate by the parties and reconciled as soon as practicable after the
Closing Date but, in any event, no later than twelve (12) months after the Closing Date.

               (b) Subject to clause (iii) above, if there are water, gas or electric meters located at the
Property, the Seller shall obtain readings thereof to a date not more than thirty (30) days prior
to the Closing Date and the unfixed water rates and charges, sewer taxes and rents and gas and
electricity charges, if any, based thereon for the intervening time shall be apportioned on the
basis of such last readings. If such readings are not obtainable by the Closing Date, then, at the
Closing, any water rates and charges, sewer taxes and rents and gas and electricity charges which
are based on such readings shall be prorated based upon the per diem charges obtained by using the
most recent period for which such readings shall then be available. Upon the taking of subsequent
actual readings, the apportionment of such charges shall be recalculated and the Seller or the
Purchaser, as the case may be, promptly shall make a payment to the other based upon such
recalculations. The parties agree to make such final recalculations within sixty (60) days after
the Closing Date. At Closing, Purchaser shall credit to the account of Seller all refundable cash
or other deposits posted with utility companies serving the Property, or, at Seller’s option,
Seller shall be entitled to receive and retain such refundable cash and deposits. The provisions of
this clause (b) shall only apply if water, gas or electrical charges are to be apportioned between
Purchaser and Seller pursuant to clause (iii) above.

               (c) If any refunds of real property taxes or assessments, water rates and charges or sewer
taxes and rents shall be made after the Closing with respect to periods before the Closing, the
same shall be held in trust by the Seller or the Purchaser, as the case may be, and shall first be
applied to the unreimbursed costs incurred in obtaining the same, then to any required refunds to
tenants under the Leases, and the balance, if any, shall be paid to the Seller.

               (d) If, on the Closing Date, the Property shall be or shall have been affected by any special
or general assessment or assessments or real property taxes payable in a lump sum or which are or
may become payable in installments of which the first installment is then a charge or lien and has
become payable, the Seller shall pay or cause to be paid at the Closing the unpaid installments of
such assessments due and as of the Closing Date.

-18-

 

               (e) No insurance policies of the Seller are to be transferred to the Purchaser, and no
apportionment of the premiums therefor shall be made.

               (f) At the Closing, the Seller shall transfer to, or cause to be credited to, the Purchaser
the amount of all unapplied security deposits held pursuant to the terms of the Leases; provided,
however, that if the amount of any security deposit stated in any Tenant Estoppels exceeds the
amount stated in the Rent Roll with respect to the applicable tenant, then Purchaser shall be
entitled to the amount of the security deposit stated in the applicable Tenant Estoppels unless
Seller obtains a replacement estoppel that confirms the amount of the security deposit alleged
owing by Seller.

               (g) Brokerage commissions, tenant improvement expenses and other amounts payable by the Seller
as landlord under Leases (i) first entered into by the Seller after the Opening of Escrow and
approved by Purchaser pursuant to the approval procedures set forth in Section 8.1, or
otherwise, or (ii) due in connection with the renewal or extension of any existing Lease taking
place after the Opening of Escrow, shall be apportioned between Purchaser and Seller with Seller
being charged for the portion of the term that precedes the Closing and Purchaser being charged for
the portion of the term on and after the Closing, unless the brokerage commission or tenant
improvement allowance is given due to an extension of the lease term and then such costs shall only
be allocated over the extended term. The Purchaser shall receive a credit at Closing for all
unfunded brokerage commissions, tenant improvement allowances and other amounts payable by the
Seller as landlord under Leases, as well as any free rent or other tenant credits that will occur
on or after the Closing (in each case only to the extent) under leases entered into by the Seller
prior to the date of this Agreement. Notwithstanding the foregoing, brokerage commissions or other
amounts payable to Seller or Seller’s affiliates (or family members of its principals) shall not be
allocated between Seller and Purchaser, with Seller being solely responsible therefore.

               (h) If a net amount is owed by the Seller to the Purchaser pursuant to this Section
9.1, such amount shall be credited against the Purchase Price. If a net amount is owed by the
Purchaser to the Seller pursuant to this Section 9.1, such amount shall be paid by
Purchaser and credited to Seller at the Closing.

               (i) If, on the Closing Date, there are past due rents with respect to any Lease then such
delinquent rents shall not be prorated at Closing. Any delinquent rents received by the Purchaser
from a tenant after the Closing shall be applied between the parties, as follows: first, to the out
of pocket expenses incurred by Purchaser in collecting such rents, and second, to rents due or to
become due during the calendar month in which the Closing occurs, and third, to all other rents due
or past due in inverse order to the order in which they became due (i.e., first to arrearages most
recently occurring, then to older arrearages). Seller shall promptly remit to Purchaser all sums
received by Seller from tenants after the Closing other than for rents for which Purchaser received
credit hereunder. Any delinquent rents not paid to Purchaser shall bear interest at the maximum
rate by law until paid. In no event shall the Seller have any right to take any action to collect
any past due rents or other amounts following the Closing.

          The provisions of this Section 9.1 shall survive the Closing.

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          9.2 Closing Costs.

               (a) The Purchaser shall pay (i) the costs its own diligence in connection with the
transactions contemplated hereby; (ii) all premiums, charges and fees of the Title Company in
excess of the premium for a standard owners CLTA title policy in the amount of the Purchase Price
including for the Purchaser’s account the cost of extended coverage and any affirmative
endorsements, and (iii) fifty percent (50%) of the Escrow Fee.

               (b) The Seller shall pay (i) the title insurance premium for a standard CLTA policy of title
insurance in the amount of the Purchase Price, as well as the cost for any endorsements to cure
title as to which Seller elected to cure by endorsement (where such cure was acceptable to
Purchaser as provided in this Agreement), (ii) fifty percent (50%) of the Escrow Fee, (iii) all
transfer taxes, transfer fees, documentary stamp taxes, and other similar fees, taxes or charges;
and (iv) all recording fees.

               (c) Each party shall pay the fees and expenses of its attorneys and other consultants, except
as provided in Section 12.9 of this Agreement.

               (d) Any other costs shall be allocated in accordance with customary practice in the
jurisdiction in which the relevant Property is located.

     10. DAMAGE TO OR CONDEMNATION OF PROPERTY.

          10.1 Casualty. If, prior to the Closing, any portion of the Property (including,
without limitation, any of the individual buildings making up any Property) is destroyed or
damaged by fire or other casualty, or in the event that the physical condition of any Property
otherwise suffers a material adverse change resulting in a diminution of value of five percent
(5%) or more of such Property, the Seller shall promptly notify the Purchaser of such fact. In
the event that (i) any damage by fire or other casualty causes any of the individual buildings
making up any Property to be materially destroyed or damaged by fire or other casualty (i.e.,
five percent (5%) or more of any portion of the Property (including, without limitation, any of
the individual buildings making up any Property), (ii) in the event that the physical condition
of any Property otherwise suffers a material adverse change resulting in a diminution of value of
five percent (5%) or more of such Property, or (iii) any fire or other casualty is not fully
covered by covered by Seller’s insurance where the cost of restoration or replacement of such
uninsured portion exceeds Fifty Thousand Dollars ($50,000.00), then the Purchaser shall have the
right to terminate this Agreement by giving written notice to the Seller not later than ten (10)
days after the giving the Seller’s notice (and, if necessary, the Closing Date shall be extended
until one day after the expiration of such ten (10) day period). If the Purchaser elects to
terminate this Agreement as aforesaid, this Agreement shall terminate and be of no further force
and effect, the Deposit shall be promptly returned to Purchaser, and no party shall have any
liability to the other hereunder. If less than a material part of any of the individual
buildings making up the Property shall be affected by fire or other casualty or if the Purchaser
shall not elect to terminate this Agreement as aforesaid, there shall be no abatement of the
Purchase Price and the Seller shall assign to the Purchaser at the Closing the rights of the
Seller to the proceeds, if any, under the Seller’s insurance policies covering the Property with
respect to such damage or destruction (including, without limitation, rental loss proceeds
attributable to the period on and after the Closing) and there shall be credited against the
Purchase Price the

-20-

 

amount of any deductible, any proceeds previously received by Seller on account thereof and
any deficiency in proceeds.

          10.2 Condemnation. If, prior to the Closing, any part of any of the individual land
making up any Property is taken by eminent domain (or is the subject of a threatened taking which
has not yet been consummated), the Seller shall notify the Purchaser of such fact promptly after
obtaining knowledge thereof. If such taking (or threatened taking) impacts a material part of any
of the individual land making up any Property (i.e., five percent (5%) of the land or a
portion of and/or interest in any Property comprising five percent (5%) or more of the value of any Property),
then the Purchaser shall have the right to terminate this Agreement by giving written notice to the
Seller not later than ten (10) days after the giving of the Seller’s notice (and, if necessary, the
Closing Date shall be extended until one day after the expiration of such ten (10) day period). If
the Purchaser elects to terminate this Agreement as aforesaid, this Agreement shall terminate and
be of no further force and effect, the Deposit shall be promptly returned to Purchaser, and no
party shall have any liability to the other hereunder. If less than a material part of any of the
individual buildings making up the Property shall be affected or if the Purchaser shall not elect
to terminate this Agreement as aforesaid, the sale of the Property shall be consummated as herein
provided without any adjustment to the Purchase Price (except to the extent of any condemnation
award received by the Seller prior to the Closing) and the Seller shall assign to the Purchaser at
the Closing all of the Seller’s right, title and interest in and to all awards, if any, for the
taking, and the Purchaser shall be entitled to receive and keep all awards for the taking of the
Property or portion thereof.

          10.3 Survival. The parties’ obligations, if any, under this Section 10 shall
survive the Closing.

     11. DEFAULT.

          11.1 Default by the Seller. If the transaction herein contemplated fails to close
solely as a result of a default by Seller hereunder, the Purchaser may, as its sole remedy, either
(a) terminate this Agreement and receive a refund of its Deposit, plus Purchaser’s actual
documented out-of-pocket third party expenses incurred in conducting its due diligence with respect
to the transaction contemplated by this Agreement, subject to a cap of One Hundred Thousand Dollars
($100,000.00), or (b) pursue an action for specific performance provided that Purchaser files such
action in a court with appropriate jurisdiction within thirty (30) days of Seller’s default.

          11.2 Default by the Purchaser. IF THE TRANSACTION HEREIN CONTEMPLATED FAILS TO CLOSE
AS A RESULT OF THE DEFAULT OF THE PURCHASER HEREUNDER, THEN SELLER’S SOLE AND EXCLUSIVE RIGHT AND
REMEDY FOR SUCH BREACH SHALL BE TO TERMINATE THIS AGREEMENT AND CANCEL THE ESCROW BY WRITTEN NOTICE
TO PURCHASER AND ESCROW AGENT IN WHICH EVENT ESCROW AGENT SHALL PAY THE DEPOSIT AND ALL ACCRUED
INTEREST THEREON TO SELLER. THE DEPOSIT SHALL CONSTITUTE LIQUIDATED DAMAGES.
THE PARTIES ACKNOWLEDGE AND AGREE THAT IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX
THE ACTUAL DAMAGES THAT SELLER WOULD INCUR AS A RESULT OF THE BREACH BY PURCHASER OF ITS

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OBLIGATION TO PURCHASE THE PROPERTY. THE PARTIES AGREE THAT THE DEPOSIT IS A REASONABLE
ESTIMATE OF SELLER’S DAMAGES, AND SHALL CONSTITUTE LIQUIDATED DAMAGES IN ACCORDANCE WITH ALL LAWS
APPLICABLE TO THIS TRANSACTION INCLUDING WITHOUT LIMITATION ALL LAWS OF THE JURISDICTION IN WHICH
THE PROPERTY IS LOCATED. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT
INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR
3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE
SECTIONS 1671, 1676 AND 1677. SELLER WAIVES ALL OTHER REMEDIES FOR PURCHASER’S BREACH OF ITS
OBLIGATION TO PURCHASE THE PROPERTY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, PROVIDED
HOWEVER NOTHING HEREIN SHALL LIMIT SELLER’S RIGHT TO RECOVERY FOR (i) PURCHASER’S INDEMNITY
OBLIGATIONS; (ii) ANY RIGHT TO ATTORNEY’S FEES UNDER THIS AGREEMENT; (iii) DAMAGES RESULTING FROM
PURCHASER MAKING A BAD FAITH FILING OF A LIS PENDENS AGAINST THE PROPERTY; (iv) ANY BREACH OF THE
CONFIDENTIALITY PROVISIONS; OR (v) PURCHASER’S OBLIGATION TO PROVIDE COPIES OF PURCHASER’S DUE
DILIGENCE DOCUMENTS TO ELLER.

	 	 	 

	

	 	
	 

	 	 
	Purchaser’s Initials

	 	Seller’s Initials

     12. Miscellaneous.

          12.1 Brokers. Each of the parties hereto represents to the other parties that it dealt
with no broker, finder or like agent in connection with this Agreement or the transactions
contemplated hereby other than CB Richard Ellis which Seller shall compensate under a separate
written agreement if and only if the Closing occurs. Each party shall indemnify and hold harmless
the other party and its respective legal representatives, heirs, successors and assigns from and
against any loss, liability or expense, including reasonable attorneys’ fees, charges and
disbursements arising out of any claim or claims for commissions or other compensation for bringing
about this Agreement or the transactions contemplated hereby made by any other broker, finder or
like agent, if such claim or claims are based in whole or in part on dealings with the indemnifying
party. The provisions of this Section 12.1 shall survive the Closing.

          12.2 Publicity. The parties agree that, during the period prior to Closing, and except
as otherwise required by law and except for the exercise of any remedy hereunder, no party shall,
with respect to this Agreement and the transactions contemplated hereby, contact or conduct
negotiations with public officials, make any public pronouncements, issue press
releases or otherwise furnish information regarding this Agreement or the transactions
contemplated to any third party (other than such party’s consultants, attorneys, experts, and
prospective lenders and investors) without the consent of the other party, which consent shall not
be unreasonably withheld or delayed. Following the Closing, either party may publish the sale of
the Property without approval of the other.

-22-

 

     12.3 Notices.

               (a) Any and all notices, demands, consents, approvals, offers, elections and other
communications required or permitted under this Agreement shall be deemed adequately given if in
writing and the same shall be delivered either in hand, by telecopier with confirmed receipt, or by
mail or Federal Express or similar expedited commercial carrier, addressed to the recipient of the
notice, postpaid and registered or certified with return receipt requested (if by mail), or with
all freight charges prepaid (if by Federal Express or similar carrier).

               (b) All notices required or permitted to be sent hereunder shall be deemed to have been given
for all purposes of this Agreement upon the date of acknowledged receipt, in the case of a notice
by telecopier, and, in all other cases, upon the date of receipt or refusal, except that whenever
under this Agreement a notice is either received on a day which is not a Business Day or is
required to be delivered on or before a specific day which is not a Business Day, the day of
receipt or required delivery shall automatically be extended to the next Business Day.

(c) All such notices shall be addressed,

	 	 	 	 	 

	 

	 	if to the Seller, to:
	 	Cornerstone Realty Fund 
1920 Main
Street 
 Suite 400 
Irvine, CA 92614

Attn: Mr. Jon Carley/Dag Wilkinson, Esq.

Telecopier No. (949) 250- 0592
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Rutan and Tucker, LLP

611 Anton Boulevard, 14th Floor

Costa Mesa, CA 92626 
 Attn: Joe Maga,
Esq.
 Telecopier No. (714) 546-9035
	 
	 	 	 	 
	 

	 	if to the Purchaser, to:
	 	Rexford Industrial Fund V, L.P. 
11620 Wilshire
Boulevard, Suite 300 
 Los Angeles, CA 90025 
 Attn: Patrick Schlehuber

Telecopier No. (310) 966-1690
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Silver & Freedman, APLC 
 2029 Century Park East,
19th Floor 
 Los Angeles, CA 90067 
 Attn: Kenneth S.
Fields, Esq. 
 Telecopier No. (310) 282.2521

-23-

 

	 	 	 	 	 

	 

	 	If to Escrow Agent, to:
	 	First American Title Company 
 National Commercial Services 
 5 First American Way, 
 Santa Ana, CA 92707 
 
	 

	 	 	 	Attn: Ms. Kathleen Huntsman 
 Telecopier No. (714) 242-7479]

               (d) By notice given as herein provided, the parties hereto and their respective successors and
assigns shall have the right from time to time and at any time during the term of this Agreement to
change their respective addresses effective upon receipt by the other parties of such notice and
each shall have the right to specify as its address any other address within the United States of
America.

          12.4 Waivers. Subject to the terms of the last paragraph of Section 6, any
waiver of any term or condition of this Agreement, or of the breach of any covenant,
representation or warranty contained herein, in any one instance, shall not operate as or be
deemed to be or construed as a further or continuing waiver of any other breach of such term,
condition, covenant, representation or warranty or any other term, condition, covenant,
representation or warranty, nor shall any failure at any time or times to enforce or require
performance of any provision hereof operate as a waiver of or affect in any manner such party’s
right to at a later time enforce or require performance of such provision or any other provision
hereof. This Agreement may not be amended, nor shall any waiver, change, modification, consent
or discharge be effected, except by an instrument in writing executed by or on behalf of the
party against whom enforcement of any amendment, waiver, change, modification, consent or
discharge is sought.

          12.5 Assignment; Successors and Assigns. Subject to Section 12.14, this
Agreement and all rights and obligations hereunder shall not be assignable, directly or
indirectly, by any party without the written consent of the other, except that the Purchaser may
assign this Agreement without Seller’s consent to any entity or entities owned in part and
controlled or managed by Purchaser, provided that Purchaser shall give Seller written notice of
such assignment at least five (5) days before the Closing Date; provided, however, that, in the
event this Agreement shall be assigned by Purchaser to any one or more entities owned in part and
controlled or managed by the Purchaser, the Purchaser named herein shall remain liable for the
obligations of the “Purchaser” hereunder. Subject to the foregoing, this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their respective legal
representatives, successors and permitted assigns. This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any other persons.

          12.6 Severability. If any provision of this Agreement shall be held or deemed to be,
or shall in fact be, invalid, inoperative or unenforceable as applied to any particular case in
any jurisdiction or jurisdictions, or in all jurisdictions or in all cases, because of the
conflict of any provision with any constitution or statute or rule of public policy or for any
other reason, such circumstance shall not have the effect of rendering the provision or
provisions in question invalid, inoperative or unenforceable in any other jurisdiction or in any
other case or circumstance or of rendering any other provision or provisions herein contained
invalid, inoperative or unenforceable to the
extent that such other provisions are not themselves actually in conflict with such
constitution, statute or rule of public policy, but this Agreement

-24-

 

shall be reformed and construed in any such jurisdiction or case as if such invalid, inoperative
or unenforceable provision had never been contained herein and such provision reformed so that it
would be valid, operative and enforceable to the maximum extent permitted in such jurisdiction or
in such case.

          12.7 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. This Agreement constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof and shall supersede and take the place of any other instruments
purporting to be an agreement of the parties hereto relating to the subject matter hereof. The
parties may also exchange signatures by facsimile or electronic mail.

          12.8 Performance on Business Days. In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a Business Day, the time
for payment or performance shall automatically be extended to the first Business Day following
such date.

          12.9 Attorneys’ Fees. If any lawsuit or arbitration or other legal proceeding arises
in connection with the interpretation or enforcement of this Agreement, the prevailing party
therein shall be entitled to receive from the other party the prevailing party’s costs and
expenses, including reasonable attorneys’ fees and expert witness fees incurred in connection
therewith, in preparation therefor and on appeal therefrom, which amounts shall be included in
any judgment therein.

          12.10 Section and Other Headings. The headings contained in this Agreement are for
reference purposes only and shall not in any way affect the meaning or interpretation of this
Agreement.

          12.11 Time of Essence. Time shall be of the essence with respect to the performance
of each and every covenant and obligation, and the giving of all notices, under this Agreement.

          12.12 Governing Law. This Agreement shall be interpreted, construed, applied and
enforced in accordance with the laws of California.

          12.13 ARBITRATION. ANY PARTY HERETO MAY ELECT TO SUBMIT ANY DISPUTE HEREUNDER THAT
HAS AN AMOUNT IN CONTROVERSY IN EXCESS OF $100,000 TO ARBITRATION HEREUNDER. ANY SUCH ARBITRATION
SHALL BE CONDUCTED IN ORANGE COUNTY, CALIFORNIA IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION
RULES OF THE AMERICAN ARBITRATION ASSOCIATION THEN PERTAINING AND THE DECISION OF THE ARBITRATORS
WITH RESPECT TO SUCH DISPUTE SHALL BE BINDING, FINAL AND CONCLUSIVE ON THE PARTIES.

     WHENEVER AN ARBITRATION IS REQUIRED, THE ARBITRATOR OR REFEREE SHALL BE SELECTED IN ACCORDANCE
WITH THIS SECTION. WITHIN FIVE (5) DAYS AFTER WRITTEN NOTICE OF ANY DISPUTE IS GIVEN TO THE OTHER
PARTY, THE PARTIES’ SHALL ATTEMPT TO AGREE ON A

-25-

 

MUTUALLY ACCEPTABLE ARBITRATOR. IN THE EVENT THE PARTIES ARE UNABLE TO SO AGREE WITHIN SUCH FIVE
(5) DAY PERIOD, THE ARBITRATOR OR REFEREE SHALL BE SELECTED IN ACCORDANCE WITH THE COMMERCIAL
ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. THE DISPUTED MATTER SHALL BE HEARD BY
THE ARBITRATOR OR REFEREE SO APPOINTED NO LATER THAN TWENTY (20) DAYS AFTER SUCH APPOINTMENT.
ARBITRATORS SHALL APPLY CALIFORNIA LAW AND BE BOUND BY PRECEDENT AND STATUTORY RULES AS THOUGH THEY
WERE JUDGES SITTING IN A CALIFORNIA COURT. STATEMENTS OF ARBITRATION AWARDS SHALL BE IN WRITING.
THE PARTIES SHALL BE ENTITLED IN ANY ARBITRATION HEREUNDER, TO SUCH RIGHTS OF DISCOVERY AS
DETERMINED BY THE ARBITRATOR.

     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 AS
PROVIDED BY CALIFORNIA LAW 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. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS
PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL
PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARILY.

     THE FEES OF THE ARBITRATOR AND THE EXPENSES INCIDENT TO THE PROCEEDINGS SHALL BE BORNE EQUALLY
BETWEEN THE SELLER AND THE PURCHASER, UNLESS THE ARBITRATORS DECIDE OTHERWISE. THE FEES OF
RESPECTIVE COUNSEL ENGAGED BY THE PARTIES, AND THE FEES OF EXPERT WITNESSES AND OTHER WITNESSES
CALLED FOR BY THE PARTIES, SHALL BE PAID BY THE RESPECTIVE PARTY ENGAGING SUCH COUNSEL OR CALLING
OR ENGAGING SUCH WITNESSES.

     THE DECISION OF THE ARBITRATORS SHALL BE RENDERED WITHIN THIRTY (30) DAYS AFTER APPOINTMENT OF
THE ARBITRATOR. SUCH DECISION SHALL BE IN WRITING AND IN DUPLICATE, ONE COUNTERPART THEREOF TO BE
DELIVERED TO THE SELLER AND ONE TO THE PURCHASER. A JUDGMENT OF A COURT OF COMPETENT JURISDICTION
MAY BE ENTERED UPON THE AWARD OF THE ARBITRATORS IN ACCORDANCE WITH THE RULES AND STATUTES
APPLICABLE THERETO THEN OBTAINING.

     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 AS
PROVIDED BY CALIFORNIA LAW 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

-26-

 

GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY
INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER
AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA
CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARILY.

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     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, AND WAIVE ANY
APPLICABLE LAW THAT WOULD INVALIDATE THIS SECTION.

	 	 	 

	 
	 	 
	 
	 	 
	Purchaser’s Initials
	 	Seller’s Initials

          12.14 Like-Kind Exchange. At either party’s request, the non-requesting party will
take all actions reasonably requested by the requesting party in order to effectuate all or any
part of the transactions contemplated by this Agreement a like-kind exchange for the benefit of
the requesting party in accordance with Section 1031 of the Internal Revenue Code, including
executing an instrument acknowledging and consenting to any assignment by the requesting party of
its rights hereunder to a qualified intermediary or an exchange accommodation titleholder. In
furtherance of the foregoing and notwithstanding anything contained in this Agreement to the
contrary, the requesting party may assign its rights under this Agreement to a “qualified
intermediary” or an “exchange accommodation titleholder” in order to facilitate, at no cost or
expense to the other, a forward or reverse like-kind exchange under Section 1031 of the Internal
Revenue Code; provided, however, that such assignment will not relieve the requesting party of
any of its obligations hereunder. The non-requesting party will also agree to issue all closing
documents, including the deed, to the applicable qualified intermediary or exchange accommodation
titleholder if so directed by the requesting party prior to Closing. Notwithstanding the
foregoing, in no event shall the non-exchanging party incur or be subject to any liability that
is not otherwise provided for in this Agreement; the Closing Date shall not be delayed as the
result of such exchange; all additional costs in connection with such exchange shall be borne by
the exchanging party; and the exchanging party shall indemnify the non-exchanging party and hold
the non-exchanging party harmless from and against any and all claims, demands, liabilities,
costs, expenses, penalties, damages and losses, including, without limitation, reasonable
attorneys’ fees relating to the non-exchanging party’s participation in such exchange. This
Agreement is not subject to or conditioned upon the ability to consummate an exchange.

          12.15 Recording. Neither this Agreement nor any memorandum thereof may be recorded
without the prior written consent of both parties.

          12.16 Non-liability of Representatives of Seller. No trustee, officer, shareholder,
employee or agent of the Seller shall be held to any personal liability, jointly or severally,
for any obligation of, or claim against, the Seller. Purchaser shall look only to the assets of
the Seller for the payment of any sum or the performance of any obligation hereunder.

          12.17 Non-liability of Representatives of Purchaser. No trustee, officer,
shareholder, employee or agent of Purchaser shall be held to any personal liability, jointly or
severally, for any obligation of, or claim against, Purchaser. Seller shall look only to the
assets of Purchaser for the payment of any sum or the performance of any obligation hereunder.

-28-

 

          12.18 Waiver. The Purchaser hereby acknowledges that it is a sophisticated
purchaser of real properties and that it is aware of all disclosures the Seller is or may be
required to provide to the Purchaser in connection with the transactions contemplated hereby
pursuant to any law, rule or regulation (including those of California and those of the states in
which the Property is located).

          12.19 Further Assurances. In addition to the actions recited herein and contemplated
to be performed, executed, and/or delivered by the Seller and the Purchaser, the Seller and the
Purchaser agree to perform, execute and/or deliver or cause to be performed, executed and/or
delivered at the Closing or after the Closing any and all such further acts, instruments, deeds and
assurances as may be reasonably required to establish, confirm or otherwise evidence the Seller’s
satisfaction of any disclosure obligations or to otherwise consummate the transactions contemplated
hereby.

          12.20 IRS Real Estate Sales Reporting. Purchaser and Seller hereby appoint Escrow
Agent as, and Escrow Agent agrees to act as, “the person responsible for closing” the transaction
which is the subject of this Agreement pursuant to Internal Revenue Code Section 6045(e). Escrow
Agent shall prepare and file all informational returns, including, without limitation, IRS Form
1099-S and shall otherwise comply with the provisions of Internal Revenue Code Section 6045(e).
Escrow Agent agrees to comply with the provisions of Executive Order 13224 regarding the Specially
Designated Nationals Blocked Persons list.

          12.21 Entire Agreement. This Agreement and all Exhibits hereto and the instruments
referred to herein contain the entire agreement and understanding between the parties hereto
relating to the subject matter hereof.

          12.22 Interrelation. This Agreement is in all respects intended by each party hereto
to be deemed and construed to have been jointly prepared by the parties. The parties hereby
expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against
either of them as a result of the actual identity of the draftsman.

[SIGNATURES ON FOLLOWING PAGE]

-29-

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as a sealed
instrument as of the date first above written.

	 	 	 	 	 
	 	SELLER:

CORNERSTONE REALTY FUND, LLC,

a California limited liability company
 

	 	 	 	 	 
	 	By:  	 CORNERSTONE INDUSTRIAL PROPERTIES, 
LLC, a California limited liability company,
 Its Managing Member
 	 
	 

					
	 	By:  	CORNERSTONE VENTURES,
 INC., a California corporation, 
Its Managing Member
 	 

					
	 	
 	 
	 	By:  	/s/ Terry Roussel
 	 
	 	 	Name:  	Terry Roussel 	 
	 	 	Its: Authorized Signatory 	 
	 

	 	 	 	 	 
	 	PURCHASER:

REXFORD INDUSTRIAL FUND V, L.P.,

a Delaware limited partnership
 

	 	 	 	 	 
	 	By:  	 REXFORD FUND V MANAGER, 
LLC, a Delaware limited liability 
company, Its Manager
 	 
	 

					
	 	By:  	REXFORD SPONSOR LLC,
a Delaware limited liability
company, Its Manager
 	 

					
	 	
 	 
	 	By:  	/s/ Howard Schwimmer
 	 
	 	 	Howard Schwimmer 	 
	 	 	Its: Manager 	 
	 

-30-

 

EXHIBIT “A”

Land

[See attached legal description for each of 6 properties.]

EXHIBIT “A”

 

 

Legal Description of Arrow Business Center

15705 & 15709 Arrow Highway, Irwindale, CA

The land referred to in this Commitment is situated in the City of Irwindale, County of Los
Angeles, State of California, and is described as follows:

PARCELS 18 AND 19 OF PARCEL MAP NO. 17703, IN THE CITY OF IRWINDALE, AS PER MAP FILED IN BOOK 194,
PAGES 83 TO 36 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 8619-001-047 and 048

EXHIBIT “A”

- 1 -

 

Legal Description of Normandie Business Center

20922 — 20924 Normandie Avenue, Torrance, CA

The land referred to in this Commitment is situated in the unincorporated area, County of Los
Angeles, State of California, and is described as follows:

THAT PORTION OF PARCEL 2 AS SHOWN ON PARCEL MAP NO. 4964, FILED IN BOOK 58 PAGE 29 OF PARCEL MAPS,
AND THAT PORTION OF LOT 4 OF TRACT 6378, AS PER MAP RECORDED IN BOOK 68 PAGES 1 AND 2 OF MAPS, BOTH
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF PARCEL 2 OF SAID PARCEL MAP NO. 4964; THENCE SOUTH 0° 02’ 16”
EAST, ALONG THE WESTERLY LINE OF SAID PARCEL 2,482.48 FEET TO THE NORTHERLY LINE OF LOT 4 OF SAID
TRACT 6378; THENCE NORTH 89° 52’ 37” WEST, ALONG SAID NORTHERLY LINE, 2.00 FEET TO THE EASTERLY
LINE OF THE WESTERLY 5.00 FEET OF SAID LOT 4; THENCE SOUTH 0° 02’ 16” EAST ALONG SAID EASTERLY
LINE, 57.30 FEET; THENCE NORTH 89° 57’ 44” EAST 206.60 FEET; THENCE NORTH 0° 02’ 16” WEST, 220.00
FEET; THENCE NORTH 89° 57’ 44” EAST 28.39 FEET TO THE SOUTHERLY PROLONGATION OF THAT CERTAIN
EASTERLY LINE OF SAID PARCEL 2 SHOWN ON SAID PARCEL MAP NO. 4964 AS HAVING A BEARING AND DISTANCE
OF “NORTH 02° 02’ 16” WEST, 282.14 FEET”; THENCE NORTH 0° 02’ 16” WEST, ALONG SAID PROLONGATION AND
SAID EASTERLY LINE, 321.93 FEET TO THE MOST NORTHERLY NORTHEAST CORNER OF SAID PARCEL 2; THENCE
SOUTH 89° 25’ 57” WEST, ALONG THE NORTHERLY LINE OF SAID PARCEL 2, 233.00 FEET TO THE POINT OF
BEGINNING.

SAID LAND IS ALSO DESCRIBED AS “PARCEL 1” IN THAT CERTAIN CERTIFICATE OF COMPLIANCE RECORDED JUNE
10, 1993 AS INSTRUMENT NO. 93-1107925 IN THE OFFICIAL RECORDS OF SAID COUNTY.

EXCEPT ALL MINERALS, ORES, PRECIOUS AND USEFUL METALS, SUBSTANCES AND HYDROCARBONS OF EVERY KIND
AND CHARACTER, INCLUDING THE PETROLEUM, OIL, GAS, ASPHALTUM AND TAR, IN AND UNDER SAID LAND, 500
FEET BELOW THE SURFACE, BUT

WITHOUT THE RIGHT TO USE THE SURFACE OF SAID LAND IN CONNECTION WITH THE DEVELOPMENT THEREOF,
PROVIDED, HOWEVER, THE SAME SHALL NOT BE CONSTRUED TO PROHIBIT SLANT DRILLING OPERATIONS OR SUCH
OTHER OPERATIONS WHICH IN NO WAY USE OR IN ANY WAY AFFECT THE SURFACE RIGHTS OF SAID LAND AND WHICH
DO NOT ENTER SAID LAND AT A POINT LESS THAN 500 FEET TO SAID SURFACE, AS RESERVED BY JOHN A.
BERTON, PAUL D. MC CLAUGHRY AND DUANE FASH, AS TRUSTEES FOR THE SULLY-MILLER CONTRACTING CO.,
PROFIT SHARING TRUST, IN DEED RECORDED MARCH 17, 1975 AS INSTRUMENT NO. 955.

APN: 7348-015-030

EXHIBIT “A”

- 2 -

 

Legal Description of Paramount Business Center

6407 & 6423 Alondra Blvd, Paramount, CA

The land referred to in this Commitment is situated in the City of Paramount, County of Los
Angeles, State of California, and is described as follows:

Parcel A:

Parcel 9 of Parcel Map No. 13813, in the City of Paramount, County of Los Angeles, State of
California, as shown on a map filed in Book 155, Pages 63 and 64 of Parcel Maps, in the office of
the County Recorder of said county.

Parcel B:

Parcel 10 of Parcel Map No. 13813, in the City of Paramount, County of Los Angeles, State of
California, as shown on a map filed in Book 155, Pages 63 and 64 of Parcel Maps, in the office of
the County Recorder of said county.

Parcel C:

A non-exclusive easement for ingress and egress and incidental purposes over those portions of
Parcels 1 to 12, inclusive, of Parcel Map No. 13813, filed in Book 155, Pages 63 and 64 of Parcel
Maps and Parcel 2 of Parcel Map No. 13658, filed in Book 137, Pages 95 and 96 of Parcel Maps and
Parcels 3 and 4 of Parcel Map No. 16925, filed in Book 187, Pages 74 to 76 of Parcel Maps included
within those areas shown and defined as “Private Drive” in the Supplemental Declaration of
Covenants, Conditions and Restrictions, recorded September 16, 1986 as Instrument No. 861221611 of
Official Records of Los Angeles County, California.

Parcel D:

A non-exclusive easement for ingress, egress, drainage, utilities, water and sewer purposes over
those portions of Parcels 3 and 4 as shown on said Parcel Map No. 16925 within the “Private Drive -
Fire Lane(s)” as shown on said map.

Parcel E:

Easements for pedestrian and vehicular access, ingress and egress and other matters as set forth in
Section VIII (Easements) of that certain Declaration of Covenants, Conditions and Restrictions
dated May 25, 1984, and recorded as Instrument No. 84-626629, as modified by that certain
Supplemental Declaration of Covenants, Conditions and Restrictions (Paramount Business Park) dated
June 15, 1986, and recorded September 16, 1986 as Instrument No. 86-1221611, and further modified
by that certain First Amendment to Declaration of Covenants, Conditions and Restrictions (Paramount
Business Park) dated February 12, 1991, and recorded April 24, 1992 as Instrument No. 92-737923,
all of Official Records of Los Angeles County, California.

APN: 6239-015-009 (Affects: Parcel A) and 6239-015-010 (Affects: Parcel B)

EXHIBIT “A”

- 3 -

 

Legal Description of Shoemaker Industrial Park

14932 Shoemaker Avenue, Santa Fe Springs, CA

The land referred to in this Commitment is situated in the City of Santa Fe Springs, County of
Los Angeles, State of California, and is described as follows:

THAT PORTION OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 20, TOWNSHIP 3 SOUTH,
RANGE 11 WEST, IN THE RANCHO LOS COYOTES, IN THE CITY OF SANTA FE SPRINGS, COUNTY OF LOS ANGELES,
STATE OF CALIFORNIA, AS SHOWN ON A COPY OF MAP RECORDED IN BOOK 41819 PAGE 141, ET SEQ., OFFICIAL
RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY AS SET FORTH IN THE LOT LINE
ADJUSTMENT RECORDED AUGUST 28, 2002 AS DOCUMENT NO. 02-2026133, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF SAID NORTHEAST QUARTER; THENCE NORTH 0° 11’ 20” EAST ALONG THE
WEST LINE THEREOF, 554.28 FEET TO THE SOUTHWESTERLY LINE OF THE RIGHT-OF-WAY OF THE SOUTHERN
PACIFIC RAILROAD COMPANY THROUGH SAID SECTION; THENCE SOUTH 57° 13’ 36” EAST ALONG SAID
SOUTHWESTERLY LINE 1006.18 FEET TO THE SOUTH LINE OF SAID NORTHEAST QUARTER; THENCE SOUTH 89° 12’
00” WEST ALONG SAID SOUTH LINE 847.91 FEET TO THE POINT OF BEGINNING.

EXCEPT THAT PORTION OF SAID LAND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE WEST LINE OF SAID NORTHEAST QUARTER DISTANT NORTH 0° 11’ 20” EAST
THEREON 127.02 FEET FROM THE SOUTHWEST CORNER OF SAID NORTHEAST QUARTER; THENCE NORTH 0°
11’ 20” EAST ALONG SAID WEST LINE 427.26 FEET TO THE SOUTHWESTERLY LINE OF THE RIGHT-OF-WAY OF
THE SOUTHERN PACIFIC RAILROAD COMPANY, THROUGH SAID SECTION; THENCE SOUTH 57° 13’ 36” EAST ALONG
SAID SOUTHWESTERLY LINE 163.17 FEET; THENCE SOUTH 00° 12’ 23” WEST 42.00 FEET;
THENCE SOUTH 01° 24’ 36” WEST 54.00 FEET; THENCE SOUTH 00° 12’ 23” WEST 242.90
FEET TO A POINT ON A LINE WHICH BEARS NORTH 89° 58’ 44” EAST FROM THE POINT OF BEGINNING;
THENCE ALONG SAID LAST MENTIONED LINE SOUTH 89° 58’ 44” WEST 136.25 FEET TO THE POINT OF BEGINNING.

ALSO EXCEPT THE WESTERLY 15.00 FEET OF SAID LAND FOR ROADS, RAILROADS AND DITCHES AS RESERVED IN
THE DEED RECORDED IN BOOK 934 PAGE 310 OF DEEDS.

ALSO EXCEPT AN UNDIVIDED ONE-HALF INTEREST IN AND TO ALL MINERALS, OIL, GAS, GASOLINE AND OTHER
HYDROCARBON SUBSTANCES ON, IN AND UNDER THE LAND DESCRIBED HEREIN AND WHICH MAY BE PRODUCED AND
SAVED THEREFROM AS RESERVED IN DEED FROM CENTRAL CALIFORNIA LIVESTOCK, INCORPORATED, A CORPORATION,
RECORDED MAY 22, 1956.

APN: 7005-001-038

EXHIBIT “A”

- 4 -

 

Legal Description of Interstate Commerce Center

2515 West Erie Street, Tempe, AZ

PARCEL NO. 1:

LOTS 1 THROUGH 4, INCLUSIVE, OF INTERSTATE CENTER, ACCORDING TO THE PLAT OF RECORD IN THE OFFICE OF
THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 320 OF MAPS, PAGE 50.

PARCEL NO. 2:

A NONEXCLUSIVE EASEMENT FOR INGRESS AND EGRESS, PARKING AND OTHER PURPOSES BY OR PURSUANT TO THAT
CERTAIN “RECIPROCAL EASEMENT AGREEMENT” RECORDED AUGUST 20, 1984, IN DOCUMENT NO. 84-364186 OF
OFFICIAL RECORDS OF MARICOPA COUNTY, ARIZONA;

EXCEPT ANY PORTION THEREOF LYING WITHIN PARCEL NO. 1.

EXHIBIT “A”

- 5 -

 

Legal Description of 500-560 Zenith

500-560 Zenith Drive, Glenview, IL

The land referred to in this Commitment is described as follows:

Parcel 1:

That part of Lot 1 (except the South 33 feet) in Levernez Brothers Subdivision of a part of the
Northeast 1/4 of Section 9, Township 41 North, Range 12, East of the Third Principal Meridian,
described as follows:

Beginning at a point on the East line of Lot 1 (except the South 33 feet) 317.60 feet Northeasterly
of the Southeast corner of Lot 1 (except the South 33 feet) thence Northerly 233.40 feet to a point
on the North line of said Lot 1, said point being 144.04 feet West of the Northeast corner of said
Lot; thence East along the North line of said Lot, 144.04 feet to the Northwesterly line of the
right of way of the Chicago and Northwestern Railway right of way; thence Southwesterly along said
Northwesterly right of way line to the point of beginning, in Cook County, Illinois.

Parcel 2:

That part of the North 24 Rods of the Northeast Fractional Quarter of Fractional Section 9,
Township 41 North, Range 12, East of the Third Principal Meridian, bounded and described as
follows: Commencing at the point of intersection of the North line of said Section with the
Northwesterly line of the Des Plaines Valley Railroad; thence Southwesterly along the Northwesterly
line of said railroad to the South line of said North 24 rods; thence West along the South line of
said North 24 rods, a distance of 184.3 feet; thence North along a straight line which crosses the
South line of the North 50 feet of said Section at a point 408.99 feet West of the Northwesterly
line of said railroad to the North line of said Section; thence Easterly along the North line of
said Section to the point of beginning (excepting therefrom that part taken for highway; and
excepting from said tract of land that part falling within the following described premises:

Beginning at a point on the South right of way line of Central Road (50 feet South of the North
line of Section 9), 408.99 feet West of the Northwest right of way line of the Des Plaines Valley
Railroad; from said point thence with an angle of 86 degrees 50 minutes 35 seconds to the left from
said South right of way line extended West 346.52 feet; thence with an angle of 93 degrees 9
minutes 25 seconds to the left from the proceeding course extended, 25.04 feet; thence with an
angle of 86 degrees 50 minutes 35 seconds to the left from the preceding course extended, 346.52
feet; thence with and angle of 93 degrees 9 minutes 25 seconds to the left from the preceding line
extended 25.04 feet to the point of beginning.

EXHIBIT “A”

- 6 -

 

EXHIBIT “B”

General Assignment and Assumption

(See attached copy)

EXHIBIT “B”

 

 

ASSIGNMENT AND ASSUMPTION OF CONTRACTS

     This ASSIGNMENT AND ASSUMPTION OF CONTRACTS (this “Assignment”) is
made as of _____________, 2011 (“Effective Date”) by and between CORNERSTONE
REALTY FUND, LLC, a California limited liability company (“Assignor”), and REXFORD
INDUSTRIAL FUND V, L.P., a Delaware limited partnership (“Assignee”).

RECITALS

     A. Assignor and Assignee are parties to that certain Purchase and Sale Agreement
(the “Purchase Agreement”), dated as of September 1, 2011, with respect to that certain real
property (the “Property”) more specifically described in “Exhibit A” attached hereto and
made a
part hereof.

     B. Concurrently with the execution and delivery of this Assignment, Assignor is
conveying the Property to Assignee.

     C. Assignor desires to assign, transfer and convey to Assignee to the extent
assignable, and Assignee desires to obtain, all of Assignor’s right, title, interest, liabilities
and
obligations in and to the Contracts (as hereinafter defined).

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

     As of the Effective Date Assignor does hereby sell, assign, convey and transfer unto
Assignee, to the extent assignable, all of Assignor’s right, title, interest, liabilities and
obligations
in and to the service contracts and assignable equipment leases (“Contracts”) described on
“Exhibit B” attached hereto and made a part hereof, provided, however, that Assignor makes
no
representation or warranty with respect to the assignability of same, except as may be expressly
provided in the Purchase Agreement.

     By execution of this Assignment, as of the Effective Date Assignee unconditionally
assumes and agrees to perform all of the covenants, agreements, liabilities and obligations under
the Contracts binding on Assignor or the Property to the extent such liabilities and obligations
arise out of facts or circumstances occurring after the Effective Date.

     ASSIGNEE ACKNOWLEDGES THAT IT HAS INSPECTED THE CONTRACTS
AND THAT THIS ASSIGNMENT IS MADE BY ASSIGNOR AND ACCEPTED BY
ASSIGNEE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS,
IMPLIED OR STATUTORY, AND WITHOUT RECOURSE AGAINST ASSIGNOR,
EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN THE PURCHASE AGREEMENT.

     EXECUTED to be effective ___, 2011.

EXHIBIT “B”

-1-

 

ASSIGNOR:

CORNERSTONE REALTY FUND, LLC,

a California limited liability company

	 	 	 	 	 
	 	By:  	CORNERSTONE INDUSTRIAL PROPERTIES, 
LLC, a California limited liability company, 
Its Managing Member
 	 

	 	 	 	 	 
	 	By:  	CORNERSTONE VENTURES, INC., 
a California corporation, 
Its Managing Member
 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 

ASSIGNEE:

REXFORD INDUSTRIAL FUND V, L.P.,

a Delaware limited partnership

	 	 	 	 	 
	 	By:  	REXFORD FUND V MANAGER, 
LLC, a Delaware limited liability 
company, Its Manager
 	 

	 	 	 	 	 
	 	By:  	REXFORD SPONSOR LLC, 
a Delaware limited liability 
company, Its Manager
 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Howard Schwimmer 	 
	 	 	Its: Manager 	 

-2-

 

	 	 	 	 	 

Exhibit A to Assignment and Assumption of Contracts

LEGAL DESCRIPTION

-3-

 

Exhibit B to Assignment and Assumption of Contracts

EQUIPMENT LEASES

-1-

 

EXHIBIT “C”

Assignment and Assumption of Leases

[See attached copy.]

EXHIBIT “C”

 

ASSIGNMENT AND ASSUMPTION OF LEASES

     This ASSIGNMENT AND ASSUMPTION OF LEASES is hereby entered into as of
__________________, 2011 (“Effective Date”), by and between CORNERSTONE REALTY
FUND, LLC, a California limited liability company (“Assignor”), and REXFORD
INDUSTRIAL FUND V, L.P., a Delaware limited partnership (“Assignee”).

     1. Assignment. As of the Effective Date Assignor does hereby sell, assign, transfer
and set over unto Assignee, without representation or warranty of any kind or nature whatsoever,
express or implied, all of Assignor’s interest as landlord in and to (i) all leases of all or any
portion of the buildings or other improvements located on the land described on Exhibit “1”
attached hereto and made a part hereof (the “Property”), which leases are more particularly
described in Exhibit “2” attached hereto and made a part hereof, and all guaranties of, or
relating to, those leases and/or any portion of any lease, if any (collectively, the “Leases”), and
(ii) all security deposits, advanced rentals and all letters of credit, paid or deposited by
tenants or
occupants under the Leases (the “Security Deposits”). The term “Leases” also includes Seller’s
interest in expired leases previously affecting the Property to the extent Purchaser must succeed
to the rights under such leases in order to enforce the indemnity, defense, and other obligations
of the lessee thereunder with respect to injury to persons or damage to property (including,
without limitation, with respect to hazardous materials or toxic waste).

     2. Assumption. Assignee, for itself and its successors and assigns, (i) hereby accepts
the foregoing assignment, and (ii) agrees to, and hereby does, assume and agree to keep, pay,
perform, observe and discharge all of the terms, covenants, conditions, agreements, provisions
and obligations contained in Leases to be kept, paid, performed, observed and discharged by the
landlord thereunder to the extent arising out of facts and circumstances first arising on or after
the Effective Date, including without limitation, the payment of all broker’s commissions and
tenant improvement allowances, as and to the extent provided in the Purchase and Sale
Agreement for the Property between Assignor and Assignee dated August __, 2011.

     3. Attorneys’ Fees. In the event of any action between Assignor and Assignee
seeking enforcement or interpretation of any of the terms and conditions to this Assignment, the
prevailing party in such action, whether by fixed judgment or settlement, shall be entitled to
recover, in addition to damages, injunctive or other relief, its actual costs and expenses,
including, but not limited to, actual attorneys’ fees, court costs and expert witness fees. Such
costs shall include attorneys’ fees, costs and expenses incurred in (a) post-judgment motions,
(b) contempt proceedings, (c) garnishment, levy and debtor and third-party examination,
(d) discovery, and (e) bankruptcy litigation.

     4. Successors. This Assignment shall inure to the benefit of Assignor and Assignee,
and their respective heirs, assigns and successors in interest.

     5. Counterparts. This Assignment may be signed by the parties in different
counterparts and the signature pages combined to create a document binding on all parties.

     IN WITNESS WHEREOF, this Assignment of Leases, has been executed by Assignor
and Assignee as of the ____ day of __________, 2011.

EXHIBIT “C”

-1-

 

	 	 	 	 	 
	 	ASSIGNOR:

CORNERSTONE REALTY FUND, LLC,

a California limited liability company

 	 
	 	By:  	CORNERSTONE INDUSTRIAL PROPERTIES,
 LLC, a California limited liability company,
 Its Managing Member
 	 

	 	 	 	 	 
	 	By:  	CORNERSTONE VENTURES, 
INC., a California corporation, 
Its Managing Member
 	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

	 	 	 	 	 
	 	ASSIGNEE:

REXFORD INDUSTRIAL FUND V, L.P.,

a Delaware limited partnership

 	 
	 	By:  	REXFORD FUND V MANAGER, 
LLC, a Delaware limited liability 
company, Its Manager
 	 

	 	 	 	 	 
	 	By:  	REXFORD SPONSOR LLC, 
a Delaware limited liability
 company, Its Manager
 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Howard Schwimmer 	 
	 	 	Its: Manager 	 

EXHIBIT “C”

-2-

 

EXHIBIT 1

EXHIBIT “C”

-3-

 

EXHIBIT 2

EXHIBIT “C”

 

 

EXHIBIT “D”

Bill of Sale

[See attached copy.]

EXHIBIT “D”

 

 

BILL OF SALE

     This BILL OF SALE (this “Bill of Sale”) is made as of the _____ day of
__________________, 2011 (“Effective Date”), by and between CORNERSTONE REALTY
FUND, LLC, a California limited liability company (“Assignor”), and REXFORD
INDUSTRIAL FUND V, L.P., a Delaware limited partnership (“Assignee”).

     For good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee hereby agree as follows:

     1. Assignor hereby sells, transfers, assigns and conveys to Assignee the following as
of the Effective Date. To the extent assignable, all right, title and interest of Assignor in and
to
all tangible personal property (“Personalty”) located on, and used in connection with the
management, maintenance or operation of that certain land and improvements located on the real
property, as more particularly described in Exhibit “1” hereto and made a part hereof
(“Real Property”), but excluding tangible personal property owned or leased by Assignor’s property
manager or the tenants of the Real Property.

     2. This Bill of Sale is given pursuant to that certain Purchase and Sale Agreement
(as amended, the “Purchase Agreement”) dated as of August __, 2011, between Assignor and
Assignee. Except as set forth in the Purchase Agreement, the Personalty conveyed hereunder is
conveyed by Assignor and accepted by Assignee AS IS, WHERE IS, AND WITH ALL
FAULTS AND EXCLUDES ALL WARRANTIES, INCLUDING, WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR ANY PARTICULAR PURPOSE, WARRANTIES CREATED BY ANY
AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE
PROPERTY CONVEYED HEREUNDER, OR BY ANY SAMPLE OR MODEL
THEREOF, AND ALL OTHER WARRANTIES WHATSOEVER CONTAINED IN OR
CREATED BY THE UNIFORM COMMERCIAL CODE.

     3. Assignee hereby accepts the assignment of the Personalty and agrees to assume
and discharge, in accordance with the terms thereof, all of the obligations thereunder to the
extent arising out of facts and circumstances first arising on or after the Effective Date hereof.

[Signatures set forth on following page.]

EXHIBIT “D”

-1-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale as of the
date first above written.

	 	 	 	 	 
	 	ASSIGNOR:

CORNERSTONE REALTY FUND, LLC,

a California limited liability company

 	 
	 	By:  	CORNERSTONE INDUSTRIAL PROPERTIES, 
LLC, a California limited liability company, 
Its Managing Member
 	 

	 	 	 	 	 
	 	By:  	CORNERSTONE VENTURES, 
INC., a California corporation,
 Its Managing Member
 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

	 	 	 	 	 
	 	ASSIGNEE:

REXFORD INDUSTRIAL FUND V, L.P.,

a Delaware limited partnership

 	 
	 	By:  	REXFORD FUND V MANAGER, 
LLC, a Delaware limited liability
 company, Its Manager
 	 

	 	 	 	 	 
	 	By:  	REXFORD SPONSOR LLC,
 a Delaware limited liability
 company, Its Manager
 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Howard Schwimmer 	 
	 	 	Its: Manager 	 

-2-

 

	 	 	 	 	 

EXHIBIT “E”

Notices to Tenants

[See attached copy.]

EXHIBIT “E”

 

 

NOTICE TO TENANTS

_____________________, 2011

_______________________________

_______________________________

_______________________________

 _______________________________

Dear __________:

     You are hereby notified that _____________________ (“Seller”), the current
owner of __________________ (the “Property”) and the current owner of the landlord’s
interest
in your lease in the Property, has sold the Property to _______________________ (“New
Owner”), as of the above date. In connection with such sale, Seller has assigned and
transferred
its interest in your lease and your security deposit thereunder in the amount of $____________
(the “Security Deposit”) to New Owner, and New Owner has assumed and agreed to perform all
of the landlord’s obligations under your lease (including any obligations set forth in your lease
or
under applicable law to repay or account for the Security Deposit) arising after the above date.
New Owner acknowledges that New Owner has received and is responsible for the Security
Deposit.

     Accordingly, (a) all your obligations under the lease from and after the date hereof,
including your obligation to pay rent, shall be performable to and for the benefit of New Owner,
its successors and assigns, and (b) all the obligations of the landlord under the lease arising
after
the above date, including any obligations thereunder or under applicable law to repay or account
for the Security Deposit, shall be the binding obligation of New Owner and its successors and
assigns.

     Unless and until you are otherwise notified in writing by New Owner, the address of New
Owner for all purposes under your lease is:

_______________________________

_______________________________

_______________________________

_______________________________

EXHIBIT “E”

-1-

 

Please immediately forward a new certificate of insurance naming New Owner as an additional
insured under your liability policy as required by your lease.

	 	 	 	 	 
	 	Very truly yours,

SELLER:

_____________________________________________,

a ______________________

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NEW OWNER:

_____________________________________________,

a _________________________

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-2-

 

EXHIBIT “F”

Form of Estoppel Certificate 

[See attached copy.]

EXHIBIT “F”

-1-

 

TENANT ESTOPPEL CERTIFICATE 

          THIS TENANT ESTOPPEL CERTIFICATE (this “Agreement”) is made as of ___________, 2011 by
_____________________, a ____________________, having an address at ____________________
(“Tenant”), in favor of (i) ________________, having an address at ________________ (together with its successors and assigns,
“Lender”) and (ii) ________________ a ______________ ____________, having an address at
________________ _______________ _______ _________ (“Buyer”).

          A. Buyer intends to obtain a loan from Lender in connection with its acquisition of the
Property described in Exhibit A, attached hereto, (the “Property”) which will be secured by a deed
of trust/mortgage and security agreement (the “Security Instrument”) recorded against the Property;
and

          B. Tenant is the holder of a leasehold estate in a portion of the Property under and pursuant
to the provisions of a certain lease dated _________________, ____ between __________________ (such
party, together with its successors and assigns with respect to the Lease (defined below),
“Landlord”), as landlord, and Tenant, as tenant, as amended and/or assigned by
_____________________ ([collectively,] the “Lease”).

AGREEMENT:

          As of the date hereof, Tenant certifies to and agrees with (i) Lender, from and after the
funding of the loan referenced in Recital B above and for so long as the Security Instrument
encumbers the Property, and (ii) Buyer, as follows:

          1. The Lease covers _______ square feet [Suite ____] [store no. ________] (the “Leased
Premises”) at the Property. A true and correct copy of the Lease is attached hereto as Exhibit B.

          2. The Lease is in full force and effect. The Lease has not been amended, modified or
supplemented except as set forth above. There are no other agreements or understandings, whether
written or oral, between Tenant and Landlord with respect to the Lease, the Leased Premises or the
Property.

          3. Tenant has accepted possession of and occupies the entire
Leased Premises under the Lease. Tenant has no right to “go dark” under the Lease except as follows:
___________________________.
If a right to “go dark” is indicated in the previous sentence, Tenant has not exercised such right. Tenant is in physical occupancy of the entire Leased Premises
and is open for business. The term of the Lease commenced on _________________, _____, and expires
on ______________, ____, subject to the following renewal options:
_________________________________________________________________________________________________________________.

          4. The monthly fixed rent is equal to, monthly minimum or basic rent under the Lease in the
amount of $__________ plus additional rent including, percentage rent in accordance with the
following terms ______________________, Tenant’s

 

proportionate share of real estate taxes, insurance and operating expenses and other sums or
charges and all such amounts have been paid in full through the month of _____________ and no such
rents, additional rents, percentage rents or other sums or charges have been paid for more than one
(1) month in advance of the due date thereof and Tenant agrees not to pay such rents, additional
rents, percentage rents or other sums or charges more than one (1) month in advance unless
otherwise specified in the Lease. Tenant agrees that upon notification by Lender in writing that
rental payments are to be made to Lender because of a default under the loan made by Lender to
Buyer, Tenant will cease making rental payments to Landlord, or its successors and assigns, and
will begin making such rental payments directly to Lender.

          5. The amount of the security deposit is $____________.

          6. To the best of Tenant’s knowledge, both Tenant and Landlord have performed all of their
respective obligations under the Lease and Tenant has no knowledge of any event which with the
giving of notice, the passage of time or both would constitute a default by Tenant or Landlord
under the Lease. Tenant is not in default under the Lease.

          7. Tenant has no claim against Landlord and no offset or defense to enforcement of any of the
terms of the Lease.

          8. All improvements required to be completed by Landlord have been completed and there are no
contributions, credits, free rent, rent abatements, deductions or other sums due to Tenant from
Landlord.

          9. Tenant has not assigned the Lease and has not subleased the
Leased Premises or any part thereof.

          10. Tenant has no right or option pursuant to the Lease or otherwise to purchase all or any
part of the Leased Premises or the Property. Tenant does not have any right or option for
additional space at the Property.

          11. Since the date of the Lease, there has been no material adverse change in the financial
condition of the Tenant, and there are no voluntary actions or, to Tenant’s best knowledge,
involuntary actions pending against Tenant under the bankruptcy laws of the United States or any
state thereof.

          12. If Lender or its designee succeeds to Landlord’s interest in the Property or if a sale by
power of sale or foreclosure occurs, Tenant shall attorn to Lender, its designee or a purchaser at
such sale as its landlord, and the Lease shall continue in full force and effect as a direct lease
between Lender (or such designee or purchaser) and Tenant upon all of the terms, covenants and
conditions set forth in the Lease; provided, however, that Lender (or such designee or purchaser)
shall not be (i) obligated to complete any construction work required to be done by Landlord
pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by
Tenant, (ii) liable for any accrued obligation of Landlord, or for any act or omission of Landlord,
whether prior to or after such foreclosure or sale, (iii) required to make any repairs to the
Property or the Leased Premises required as a result of fire or other casualty or by reason of
condemnation unless Lender (or such designee or purchaser) shall be obligated under the Lease to
make such repairs and shall have received sufficient casualty

-3-

 

insurance proceeds or condemnation awards to finance the completion of such repairs, (iv) required
to make any capital improvements to the Property or the Leased Premises which Landlord may have
agreed to make, but had not completed, or to perform or provide any services not related to
possession or quiet enjoyment of the Leased Premises, (v) subject to any offsets or counterclaims
which shall have accrued to Tenant against Landlord prior to the date upon which Lender shall
become the owner of the Property, (vi) bound by any rent which Tenant may have paid for more than
the current month to any prior landlord, or (vii) liable for the return of any security deposit
posted by Tenant unless actually received by Lender (or such designee or purchaser) and required to
be returned pursuant to the terms of the Lease.

          13. Tenant has no right to terminate the Lease except, to the extent specifically contained in
the Lease, in connection with a casualty or condemnation and except, to the extent permitted by
applicable law, in connection with an actual or constructive eviction of Tenant.

          14. Tenant will not seek to terminate the Lease or seek or assert any set-off or counterclaim
against the rent or additional rent by reason of any act or omission of Landlord, until Tenant
shall have given written notice of such act or omission to Lender at the address set forth above.
Tenant will accept performance by Lender of any term of the Lease required to be performed by
Landlord, with the same force and effect as though performed by Landlord, although Lender shall in
no event be required to do so. Lender shall have a reasonable time after actual receipt of any
notice of default by Landlord within which to cure any such default.

          15. Tenant agrees that the Lender shall not be bound by any modification or amendment to the
Lease which was not consented to by Lender and that Lender, its designee and any purchaser at a
sale mentioned in paragraph 13 above will not be bound by any modification of the Lease including,
without limitation, any reduction in rent or term, unless Lender has consented thereto.

          16. Tenant agrees that the Lease and all of the terms, covenants and provisions thereof
(including, without limitation, all terms, covenants and provisions with respect to the disposition
of any casualty insurance proceeds or condemnation awards) and all rights, remedies and options of
Tenant thereunder are and shall at all times continue to be subject and subordinate in all respects
to the Security Instrument, and to the lien thereof and all terms, covenants and conditions set
forth in the Security Instrument, including, without limitation, all renewals, increases,
modifications, spreaders, consolidations, replacements and extensions thereof and to all sums
secured thereby with the same force and effect as if the Security Instrument had been executed,
delivered and recorded prior to the execution and delivery of the Lease.

          The undersigned individual hereby certifies that he or she is duly authorized to sign,
acknowledge and deliver this Agreement on behalf of Tenant.

          Tenant acknowledges that Buyer will rely on this Agreement in connection with Buyer’s
acquisition of the Property and that Lender will rely on this Agreement in making a loan or
otherwise extending credit to Buyer. The information contained in this Agreement shall be for the
benefit of Buyer and Lender and their respective successors and assigns.

-4-

 

{Signature Page Follows}

-5-

 

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

[SIGNATURE BLOCK OF TENANT]

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