Document:

exv10w1

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This AMENDED AND RESTATED AGREEMENT by and between Cereplast, Inc., a Nevada corporation, and
any organization(s) under common control as defined in the Internal Revenue Code (the “Company”),
and Frederic Scheer (the “Executive”) is effective as of August 1, 2011.

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the
best interests of the Company and its shareholders to continue to employ the Executive as President
and Chief Executive Officer of the Company, and the Executive desires to continue to serve in that
capacity;

WHEREAS, the Executive and the Company entered into an Employment Agreement dated as of August
1, 2006 and set to expire on July 31, 2011;

WHEREAS, the Executive and the Company desire to amend the employment terms to reflect the
changes in the Executive’s compensation and to accurately set forth the Executive’s restrictive
covenants; and

WHEREAS, in recognition that Executive’s skills and experience are essential to the on-going
business, operations and prospects of the Company, the Company and Executive have agreed to this
Amended and Restated Employment Agreement (“Agreement”);

NOW, THEREFORE, IT IS HEREBY AGREED THAT THE EMPLOYMENT AGREEMENT SHALL BE AMENDED AND
RESTATED, EFFECTIVE AS OF AUGUST 1, 2011, TO READ AS FOLLOWS:

1. Term of Agreement.

The Company hereby agrees to continue to employ Executive, and Executive hereby accepts such
continued employment, on the terms and conditions set forth herein, for a period commencing on
August 1, 2011 and ending July 31, 2015 (the “Term”). Six months prior to the expiration of the
Term, the Company and the Executive agree in good faith to enter into discussions on a new
employment term and related employment agreement. Any rights that the Executive has to severance
pay arising from a termination of his employment under this Agreement shall be governed exclusively
by the provisions of Section 5.

2. Position and Duties. (a) The Executive shall be employed as President and Chief
Executive Officer of the Company with responsibility for overall supervision and management of the
Company’s operations. The Executive also serves as Chairman of the Board of Directors. In his
executive capacities, the Executive shall report to and perform the duties reasonably assigned by,
and shall comply with all lawful and reasonable directives and instructions of the Board.

(b) The Executive shall devote substantially all of his attention and time during normal
business hours to the business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Executive under this Agreement, use the Executive’s reasonable
best efforts to carry out such responsibilities faithfully and efficiently, and not to engage in
any other business activities while employed by the Company, except with the express consent of the
Board. Notwithstanding the above, executive may serve as a non-fulltime member of the board of
directors or other governing body of three organizations (provided that Executive’s service on the
boards of the SPI Bioplastics Council and the Biodegradable Products Institute shall not count
toward such limitation), or may participate in, charitable endeavors, political bodies, and other
organizations, provided that such service or participation does not substantially and materially
interfere with the performance of Executive’s duties hereunder.

 

 

 

3. Compensation. (a) Annual Base Salary. The Executive shall receive an
annual base salary (“Annual Base Salary”) of Five Hundred Sixty Five Thousand Dollars
($565,000.00), payable in accordance
with the regular payroll practices of the Company. The Base Salary shall become the minimum
base salary under this Agreement and may not be decreased thereafter without the written consent of
Employee. Executive’s Annual Base Salary shall be paid at periodic intervals in accordance with
the Company’s normal payroll practices for its salaried employees.

(b) Performance-Based Annual Bonus and Discretionary Bonus. In addition to the
Annual Base Salary, the Executive shall be eligible to receive, for each fiscal year or, in the
case of a partial fiscal year, on a pro rata basis, a performance-based annual bonus and a
discretionary bonus (together, “Annual Bonus”).

(i) The performance bonus shall not exceed fifty percent (50%) of Executive’s Annual Base
Salary then in effect, with criteria set forth in writing and determined in good faith by the Board
and its Compensation Committee.

(ii)The discretionary bonus shall be discretionary in nature and, if awarded, shall be
determined by the Board and its Compensation Committee.

For any partial year at the beginning of the Employment Period, the Annual Bonus shall be
prorated based on the number of days in the calendar year during which Executive is employed by the
Company divided by three hundred sixty-five (365).

The Annual Bonus, less required tax deductions, shall be paid in a lump sum on or before the
15th day of the third month following the end of the Company’s fiscal year.

(c) Group Long Term Disability Benefits. The Company shall use commercially
reasonable best efforts to secure a group long term disability policy (the “Policy”) that will cover
Executive and the senior executives of the Company, which would provide income replacement
benefits to the Executive on the most favorable terms reasonably obtainable.

Notwithstanding the foregoing, the Company would not be obligated to purchase and maintain the
Policy if (i) the premium for such policy exceeds $1,200 per month (with respect to the Executive), in which case the Company
shall procure the best possible such policy for $1,200 per month (with respect to the Executive), and (ii) the Executive does not cooperate in, or fails to pass, any medical examination reasonably
required by the insurer.

(d) Other Benefits. During his employment pursuant to this Agreement: (i) The
Executive shall be entitled to participate in all equity and other incentive, savings and
retirement plans, practices, policies and programs of the Company to at least the same extent as
other senior executives of the Company and (ii) the Executive and/or the Executive’s family, as the
case may be, shall be eligible for participation, and shall receive all benefits under, all
vacation pay, welfare benefit plans, practices, policies and programs provided by the Company
(including, without limitation, medical, prescription, dental, disability, salary continuance,
employee life insurance, group life insurance, accidental death and travel accident insurance plans
and programs) to at least the same extent as other comparable executives of the Company. Without
limiting the scope of the foregoing, if during the Term or any extended term of this Agreement the
Company adopts any long-term incentive plan, bonus plan, stock option plan, or similar arrangement,
and if under any such arrangement awards, grants or similar interests (“Awards”) are
given to other executive employees of the Company, then at the time such Award is given to other
executive employees the Executive shall be entitled to an Award of the same type on no less
favorable terms as the highest-value Award given to any other executive employee.

 

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(e) Automobile Allowance. Notwithstanding anything else herein to the contrary, the
Company shall pay to the Executive a fixed amount equal to one thousand dollars ($1,000.00) per
month on the last day of each month during the term of this Agreement as reimbursement to the
Executive on a non-accountable basis of all expenses incurred by the Executive for the use of his
automobile for Company business purposes, including but not limited to depreciation, repairs,
maintenance, fuel and insurance. After the expiration of the first year of the term of this
Agreement, the Company’s Board of Directors will review and may in its discretion authorize the
Company to lease an automobile for the Executive.

(f) Expenses. The Executive shall be entitled to receive prompt reimbursement for all
necessary and reasonable business expenses incurred by the Executive in carrying out the
Executive’s duties under this Agreement (which shall include reasonable relocation, car allowance,
and temporary living expenses in connection with Executive’s forthcoming employment assignment in
Italy), provided that the Executive complies with the generally applicable policies, practices and
procedures of the Company and complies with the proper submission of expense reports, receipts, or similar documentation of
such expenses.

(g) Notwithstanding any provision of this Agreement (i) the compensation paid to Executive
shall not exceed the amount that may be deducted by the Company on its federal income tax return
for the fiscal year in which the compensation is paid, and (ii) any “incentive-based compensation”
within the meaning of Section 10D of the Exchange Act will be subject to claw-back by the Company
in the manner required by Section 10D(b)(2) of the Exchange Act, as determined by the applicable
rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange
Commission.

4. Termination of Employment. (a) Death or Disability. The Executive’s
employment shall terminate automatically upon the Executive’s death. The Company shall be entitled
to terminate the Executive’s employment because of the Executive’s Disability during his
employment. “Disability” means that the Executive has been unable, for a period of six (6)
consecutive months, after reasonable accommodation, to perform the Executive’s duties under this
Agreement, as a result of physical or mental illness or injury.

(b) By the Company. The Company may terminate the Executive’s employment for Cause or
without Cause. “Cause” means: (i) a material breach of this Agreement; (ii) a major violation of
the Company’s policies which would normally result in immediate discharge; (iii) repeated violation
of the Company’s policies which, after warning, would normally result in discharge; (iv) theft or
dishonesty; (v) personal conduct which reflects in a significant manner unfavorably on the
Company’s reputation or business; (vi) willful, deliberate and premeditated acts of
material significance which are against the Company’s interest; provided, however, that the Company
may only terminate the Executive by reason of clauses (i) or (iii) above if the Executive has not
remedied such breach or violation, as applicable, within thirty (30) days after receiving written
notice from the Company specifying the details thereof.

(c) Date of Termination. The “Date of Termination” means (i) the date of the
Executive’s death or,(ii) the effective date of the termination of the Executive’s employment by
the Company for Executive’s Disability, for Cause or without Cause, or by the Executive
voluntarily.

 

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5. Obligations of the Company upon Termination.

(a) Termination Other Than For Cause by Company or Termination by Executive for Good
Reason. If Executive’s services under this Agreement are terminated by the Company for any
reason other than Cause, excluding termination in conjunction with a Change in Control of the Company (as defined
below), prior to June 30, 2015 or if Executive resigns for Good Reason (as defined below), then, in
consideration for the covenants contained in Section 8 below, Executive shall be entitled to
receive the following payments and benefits (the “Separation Package”) and all other Company
obligations to Executive under this Agreement will be automatically terminated and completely
extinguished:

(i) the Company shall pay Executive an amount equal to one and one half times (1.5x) the
Annual Base Salary in effect at the date of the termination; which amount (less applicable tax
withholdings) shall be paid, subject to Section 5(e) below, in a lump sum on the sixtieth (60th)
day following the date of Executive’s termination of employment;

(ii) the Company shall pay Executive the average of the previous two Annual Bonus payments or
the previous year’s Annual Bonus if less than two years of bonuses have been paid under Section
3(b), which amount (less applicable tax withholdings) shall be paid, subject to Section 5(e) below,
in a lump sum on the sixtieth (60th) day following the date of Executive’s termination of
employment; and

(iii) the Company shall timely pay all required COBRA premiums to the Company’s health plan
insurer in order to continue Executive’s health care coverage for the maximum period permitted by
law, provided Executive timely elects COBRA coverage.

The Company shall also pay to the Executive, in a lump sum on the Date of Termination, the
Executive’s accrued but unpaid cash compensation, that shall include but not be limited to, any
portion of the Executive’s Annual Base Salary and or Annual Bonus previously approved by the
Committee that has not yet been paid (the “Accrued Obligations”).

Payment of the Separation Package and any related benefits shall be conditioned upon Executive
properly executing on or after the Date of Termination, and not revoking or attempting to revoke
within the permitted timeframe, a general release of claims against the Company, its Board of
Directors, its affiliates, and their employees and agents substantially in the form of Exhibit
A or, in the event of a change in the law that would limit the effect of the release attached
as Exhibit A, a general release that would have the same scope and effect as the release attached
as Exhibit A (such release, the “Release”) and the Release becoming irrevocable. Executive
shall not be entitled to receive the Separation Package and related benefits specified in this
Agreement in the event Executive fails to timely execute the Release or if Executive timely revokes
the Release.

For purposes of this Agreement, Executive’s resignation for “Good Reason” shall mean the
resignation of employment by Executive following the occurrence of:

(i) a material diminution in Executive’s Base Salary without the consent of Executive;

(ii) the removal of the Executive as President, as Chief Executive Officer, or as the Chairman
of the Board of Directors of the Company, the appointment of any co-President, co-Chief Executive
Officer, or co-Chairman of the Board, the requirement that the Executive report or be subordinate
to any person other than the Board, or the removal of the Executive’s right to hire or terminate
employees of the Company;

(iii) a relocation of Executive’s regular office by more than fifty (50) miles from the
Company’s headquarters or from one of the Company’s major manufacturing facilities (for the
avoidance of doubt, Executive’s forthcoming employment assignment in Italy shall not be considered
“Good Reason;”); or

(iv) The Company’s material breach of this Agreement.

 

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In order for Executive to resign for Good Reason, Executive must provide advance written
notice of such resignation to the Company within thirty (30) days following the initial existence
of the action or event giving rise to Good Reason. The notice must specify an Effective Date of
Termination that is not less than fifteen (15) days, nor more than thirty (30) days, after the date
of the written notice, and Executive agrees that should the Company
remedy the basis for such resignation prior to the Effective Date of Termination specified in
the written notice, then Executive’s resignation will not be considered to be for Good Reason. The
Company may relieve Executive of some or all of his duties, responsibilities and authority during
any notice period, and such relief shall not serve as a basis for Executive to claim “Good Reason”
under this Section 5, that the Company reinstates such duties, responsibilities and authority not
later the last day of such notice period.

(b) Death or Disability. If the Executive’s employment is terminated by reason of the
Executive’s death or Disability, the Company shall pay the Accrued Obligations to the Executive or the Executive’s estate or legal representative,
as applicable, in the form and manner described in subsection (a) above. In addition, to the
extent permitted by applicable law or regulation, the Company will assign to Executive’s estate as sole
beneficiary the existing Company-purchased key man life insurance policy, to be kept in effect throughout the Term of
this Agreement and any extensions, having death benefits equal to or greater than Executive’s
Annual Base Salary; provided however, the Company would not be obligated to purchase and maintain
such life insurance policy if (i) the premium on such policy exceeds $1,500 per year and (ii) the Executive does not cooperate in, or fails to pass, any medical
examination reasonably required by the insurer. Beyond these benefits, the Company shall have no
further obligations under this Agreement.

(c) Cause or Voluntary Termination. If the Executive’s employment is terminated by
the Company for Cause, the Company shall pay the Executive Annual Base Salary through the Date of
Termination and shall have no further obligations under this Agreement. If the Executive
terminates voluntarily, the Company shall pay the Executive the Accrued Obligations and the Company
shall have no further obligations under this Agreement.

(d) Change of Control. “Change of Control” is defined as (i) a sale of all or
substantially all of the Company’s assets or more than fifty (50) percent of the total fair market
value or total voting power of the Company’s outstanding stock to a purchaser or group (as defined
in the regulations under Section 409A) that is unaffiliated with the Company in a single
transaction or series of related transactions or (ii) a merger where the Company is not the
surviving corporation with any entity that is unaffiliated with the Company. Notwithstanding the
provisions of section 5(a) above, upon a Change of Control, Executive has the right to terminate
this Agreement pursuant under the terms of this section and shall be entitled to benefits set forth
hereunder. If a Change of Control occurs, Executive may elect to terminate this Agreement within
120 days after such Change of Control by giving written notice of such election to the Company. If
Executive elects to terminate as a result of a Change of Control, the Company shall pay to
Executive the total of 2.99 times his Annual Base Salary and the average of the previous two Annual
Bonus payments or the previous year’s Annual Bonus if less than two years of bonuses have been
paid, over 36 months after his Date of Termination. Executive’s unvested stock options, if any,
shall immediately vest and Executive will also be entitled to continued health benefits as outlined
in Section 5(d) above.

(e) Parachute Payment. If any payment or benefit the Executive would receive pursuant
to a Change of Control or otherwise (“Payment”) would (i) constitute a “parachute payment” within
the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise
tax imposed by Section 4999 of the Code (the “ Excise Tax”), then such Payment shall be reduced to
the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment
that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest
portion, up to and including the total, of the Payment, whichever amount, after taking into account
all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all
computed at the highest applicable marginal rate), results in the Executive’s receipt, on an
after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting
“parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall
occur in the following order unless the Executive elects in writing a different order (provided,
however, that such election shall be subject to Company approval if made on or after the effective
date of the event that triggers the Payment): (1) reduction of cash payments, (2) cancellation of
accelerated vesting of equity awards, and (3) reduction of employee benefits. In the event that
acceleration of vesting of equity
award compensation is to be reduced, such acceleration of vesting shall be cancelled in the
reverse order of the date of grant of the Executive’s equity awards unless the Executive elects in
writing a different order for cancellation.

 

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The accounting firm engaged by the Company for general audit purposes as of the day prior to
the effective date of the Change of Control shall perform the foregoing calculations. If the
accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change of Control, or is unwilling to perform this function, then the
Company shall appoint a nationally recognized accounting firm to make the determinations required
hereunder. The Company shall bear all expenses with respect to the determinations by such
accounting or law firm required to be made hereunder.

The accounting firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Executive and the Company
within fifteen (15) calendar days after the date on which the Executive’s right to a Payment is
triggered (if requested at that time by the Executive or the Company) or such other time as
requested by the Executive or the Company. If the accounting or law firm determines that no Excise
Tax is payable with respect to a Payment, either before or after the application of the Reduced
Amount, it shall furnish the Executive and the Company with an opinion reasonably acceptable to the
Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith
determinations of the accounting or law firm made hereunder shall be final, binding and conclusive
upon the Executive and the Company.

(f) Sole Compensation Upon Termination. The Separation Package provided Executive
under this Section 5 are the only severance benefits to which Executive is entitled upon the
termination of his employment with the Company, and no other benefits shall be provided to
Executive by the Company pursuant to any other severance plan or program of the Company, except as
required by applicable law. Executive acknowledges and agrees that but for his execution of this
Agreement, he would not be entitled to the Separation Package provided under this Section 5.

(g) Specified Employee Payments. Notwithstanding the foregoing, if the Executive is
a specified employee, as defined under Section 409A(a)(2)(B)(i) of the Code, on the date of
Executive’s Date of Termination, to the extent that the payments or benefits under this Section 5
are considered deferred compensation under Section 409A of the Code, then all such payments or
portions thereof that would have been paid during the six-month period following the Date of
Termination shall instead be paid or distributed to Executive in a lump sum on the day next
following the earlier of (i) the expiration of such six-month period or (ii) the date of
Executive’s death.

(h) Vesting of Interests. If the Executive’s employment terminates under the
circumstances described in subsection (a) or (b) above, then effective on the Date of Termination
all unvested rights held by the Executive to any equity, quasi-equity, or similar interests,
including but not limited to options, stock units, or stock appreciation rights, shall become fully
vested.

6. No Mitigation. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement and such amounts shall not be reduced, regardless of
whether the Executive obtains other employment.

7. Confidential Information; Non-Solicitation; No Conflict.

(a) The Executive shall hold in a fiduciary capacity for the benefit of the Company all
secret or confidential information, knowledge or data, customer information, supplier information,
cost and pricing information, marketing and sales techniques, strategies and programs, research and
development, unannounced product specifications and prototypes, computer programs and software and
financial information relating to the Company or any of its affiliated companies and their
respective businesses that the Executive obtains during the Executive’s employment by the Company
or any of its affiliated companies and that is not public knowledge (other than as a result of the
Executive’s violation of this paragraph (a) of Section 8) (“Confidential Information”). The
Executive acknowledges that such Confidential Information is valuable and gives the Company a
competitive advantage over those who do not know the information, and agrees to take all reasonable
precautions necessary to
prevent such disclosure or misuse. The Executive shall not communicate, divulge or
disseminate Confidential Information at any time during or after the Executive’s employment with
the Company except in the good faith performance of his duties hereunder, with the prior written
consent of the Company or as otherwise required by law or legal process.

 

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(b) Upon termination of the Executive’s employment with the Company for any reason, the
executive agrees to return to the Company all of its property including originals and copies of
Company issued keys, computers, cellular phones, business documents, computer software, printouts,
advertisements, brochures, equipment, prototypes, manuals, notebooks, and any other record,
document or tangible property relating to the Company and its business and shall not procure,
photocopy or copy any property of the Company after notification of, or in anticipation of,
termination of employment.

(c) (i) During his employment with the Company, the Executive will not, except with the prior
written consent of the Board, directly or indirectly, own, manage, operate, join, control, finance
or participate in the ownership, management, operation, control or financing of, or be connected as
an officer, director, employee, partner, principal, agent, representative, consultant or otherwise
with, or use or permit Executive’s name to be used in connection with, any business or enterprise
which is engaged in any business that is competitive with any business or enterprise in which the
Company is engaged, both within the United States and internationally.

(ii) The restrictions of subparagraph (c)(i) shall not be construed to prohibit the ownership
by the Executive of less than two percent of any class of securities of any corporation which is
engaged in any of the foregoing businesses having a class of securities registered pursuant to the
Securities Exchange Act of 1934 (the “Exchange Act”), provided that such ownership represents a
passive investment and that neither the Executive nor any group of persons including the Executive
in any way, either directly or indirectly, manages or exercises control of any such corporation,
guarantees any of its financial obligations, otherwise takes any part in its business, other than
exercising the Executive’s rights as a shareholder, or seeks to do any of the foregoing.

(iii) In addition, the Executive agrees that he will not, for a period of 24 months after the
termination of the Executive’s employment with the Company for any reason, or for a period of 36
months if the Executive terminates as a result of a Change of Control, without the prior written
consent of the Company, whether directly or indirectly, (A) disrupt, damage, impair or interfere
with the business of the Company by soliciting any employee, whether soliciting such person to be
an employee, officer, director, agent, consultant or independent contractor, who is or at any time
during the previous twelve months was an employee, representative, officer or director of the
Company or any of its subsidiaries or (B) disrupt, damage, impair or interfere with the business of
the Company by soliciting any customers or actively solicit, divert, or take away any of the
Company’s customers using Confidential Information.

(d) The Executive represents to the Company that neither his continuation of employment
hereunder nor the performance of his duties hereunder conflicts with any contractual commitment on
his part to any third party or violates or interferes with any rights of any third party.

(e) The Executive acknowledges and agrees that the restrictions contained in this Section are
reasonable and necessary to protect and preserve the legitimate interests, properties, goodwill and
business of the Company, that the Company would not have entered into this Agreement in the absence
of such restrictions and that irreparable injury will be suffered by the Company should the
Executive breach any of those provisions. The Executive represents and acknowledges that (i) the
Executive has been advised by the Company to consult Executive’s own legal counsel in respect of
this Agreement, and (ii) that the Executive has had full opportunity, prior to execution of this
Agreement, to review thoroughly this Agreement with the Executive’s counsel. The Executive further
acknowledges and agrees that a breach of any of the restrictions in this Section cannot be
adequately compensated by monetary damages. The Executive agrees that, in the case of any
violation of the provisions of this Section 7, the Executive shall forfeit all payments not yet
made under this Agreement at the time of any violation of this Section 7 and that the Company shall
be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual
damages or posting of a bond, which rights shall be
cumulative and in addition to any other rights or remedies to which the Company may be
entitled at law or in equity. In the event that any of the provisions of this Section should ever
be adjudicated to exceed the time or other limitations permitted by applicable law in any
jurisdiction, it is the intention of the parties that the provision shall be amended to the extent
of the maximum time or other limitations permitted by applicable law, that such amendment shall
apply only within the jurisdiction of the court that made such adjudication and that the provision
otherwise be enforced to the maximum extent permitted by law.

 

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8. Inventions and Patents. (a) The Executive agrees that with respect to any
inventions made by him or the Company during the Executive’s employment, solely or jointly with
others, (i) that are made with the Company’s equipment, supplies, facilities, trade secrets or
time, or (ii) that relate to the business of the Company or the Company’s actual or demonstrably
anticipated research or development, or (iii) that result from the any work performed by the
Executive for the Company, such inventions belong to the Company. The Executive also agrees that
the Company shall have the right to keep such inventions as Confidential Information, if the
Company chooses.

(b) As a condition of Executive’s receipt of the benefits provided for in this Agreement,
Executive will execute the Company’s Confidential Information and Assignment of Inventions
Agreement, a true and correct copy of which is attached to this Agreement as Exhibit B.
Executive’s obligations under this Paragraph 8 (b). and Exhibit B shall continue in effect after
the termination of his employment with the Company, whatever the reason or reasons for such
termination, and Executive acknowledges and agrees that the Company shall have the right to
communicate with any future or prospective employer of Executive concerning Executive’s continuing
obligations under this Paragraph 8(b). and Exhibit B.

9. Successors. (a) This Agreement is personal to the Executive and, without the
prior written consent of the Company, shall not be assignable by the Executive otherwise than by
will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal representatives.

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns (whether direct or indirect, by purchase, merger, consolidation or
otherwise). As used in this Agreement, “Company” shall mean both the Company as defined above and
any such successor by operation of law or otherwise.

10. Cooperation. Any time following the Date of Termination, promptly upon request by
the Company, the Executive shall cooperate with the Company to the extent necessary to assist the
Company in the transition of Executive’s responsibilities and in any litigation or administrative
proceedings involving any matters with which the Executive was involved during his employment by
the Company. The Company shall compensate the Executive for all time exceeding 8 hours per matter
and reimburse Executive for any reasonable expenses incurred in providing the assistance.

11. Arbitration. The Company and the Executive mutually consent to the resolution by
arbitration, in accordance with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association, of all claims or controversies arising out of the Executive’s
employment (or its termination) that the Company may have against the Executive or that the
Executive may have against the Company or against its officers, directors, shareholders, employees
or agents in their capacity as such other than a claim which is primarily for an injunction or
other equitable relief. The Executive and the Company acknowledge that this Agreement waives any
right to trial by jury or class action relief. The Company shall bear all costs associated with
the arbitration including, but not limited to, filing and/or administration costs, arbitrator’s
fees and location expenses. The prevailing party in any arbitration or in any action involving
injunctive relief shall be entitled to recover his or its attorneys; fees and costs as permitted by
applicable law.

 

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12. Miscellaneous. (a) This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California, without reference to principles of conflict
of laws. The captions of this Agreement are not part of the provisions hereof and shall have no
force or effect.

(b) This Agreement may not be amended or modified except by a written agreement executed by
the parties hereto or their respective successors and legal representatives.

(c) All notices and other communications under this Agreement shall be in writing and shall be
given by hand to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to the Executive:

Frederic Scheer

Personal & Confidential

at the address listed in Executive’s personnel file

If to the Company:

Cereplast, Inc.

300 N. Continental Blvd., Suite 100

El Segundo, California 90245

Attn: Chair, Compensation Committee of the Board of Directors

With a required copy to:

Cereplast, Inc.

300 N. Continental Blvd., Suite 100

El Segundo, California 90245

Attn: Legal Department

or to such other address as either party furnishes to the other in writing in accordance with this
paragraph (c) of Section 11. Notices and communications shall be effective when actually received
by the addressee.

(d) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. If any provision of this
Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision,
together with all other provisions of this Agreement, shall remain valid and enforceable and
continue in full force and effect to the fullest extent consistent with law.

(e) Notwithstanding any other provision of this Agreement, the Company may withhold from
amounts payable under this Agreement all federal, state, local and foreign taxes that are required
to be withheld by applicable laws or regulations.

(f) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of, or to assert any right under, this Agreement shall not be deemed to be a waiver of
such provision or right or of any other provision of or right under this Agreement.

(g) This Agreement may be executed in several counterparts, each of which shall be deemed an
original, and said counterparts shall constitute but one and the same instrument.

13. The respective rights and obligations of the parties hereunder shall survive any
termination of the Executive’s employment or arrangements to the extent necessary to the intended
preservation of such rights and obligations, including, but not by way of limitation, those rights
and obligations set forth in Sections 3, 5, 7 and 8, subject to giving effect to any explicit
termination of such rights pursuant to the applicable Section.

[SIGNATURES APPEAR ON NEXT PAGE]

 

9

 

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization of its Board of Directors, the Company has caused this Agreement to be executed in
its name on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	CEREPLAST, INC.	 	 	 	FREDERIC SCHEER
	 
	 	 	 	 	 	 
	By:

	 	/s/ Petros Kitsos
	 	 	 	/s/ Frederic Scheer
	 

	 	 
	 	 	 	 
	Its:

	 	Director and Chairman of the
Compensation Committee	 	 	 	 

Dated: August 12, 2011

 

10

 

EXHIBIT A TO

FREDERIC SCHEER EMPLOYMENT AGREEMENT

Dated August 1, 2011

GENERAL RELEASE AND WAIVER OF CLAIMS

In consideration of the payments and other benefits set forth in the Employment Agreement
dated August 1, 2011 (the “Agreement”), to which this form shall be deemed to be attached, Frederic
Scheer (“Executive”) hereby agrees to the following general release and waiver of claims (“General
Release”).

In exchange for the consideration provided to Executive by the Agreement that Executive is not
otherwise entitled to receive, Executive hereby generally and completely releases Cereplast, Inc.
(the “Company”) and its directors, officers, employees, shareholders, partners, agents, attorneys,
predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from
any and all claims, liabilities and obligations, both known and unknown, that arise out of or are
in any way related to events, acts, conduct, or omissions occurring prior to my signing this
General Release. This general release includes, but is not limited to: (1) all claims arising out
of or in any way related to Executive’s employment with the Company or the termination of that
employment; (2) all claims related to Executive’s compensation or benefits from the Company,
including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, or any other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in
violation of public policy; and (5) all federal, state, and local statutory claims, including
claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under
Title VII of the 1964 Civil Rights Act, as amended, the Age Discrimination in Employment Act, the
California Fair Employment and Housing Act, the Equal Pay Act of 1963, as amended, the provisions
of the California Labor Code, the Americans with Disabilities Act, the Fair Labor Standards Act,
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Dodd-Frank Wall
Street Reform and Consumer Protection Act, the Sarbanes-Oxley Act of 2002, and any other state,
federal, or local laws and regulations relating to employment and/or employment discrimination. The
only exceptions are claims Executive may have for unemployment compensation and worker’s
compensation, Annual Base Salary (through the date of termination), outstanding business expenses,
unused vacation earned through the date of termination of Executive, claims to accrued and vested
benefits under the Company’s employee benefit plans, and claims to the severance benefits which are
the consideration for this General Release.

Executive expressly waives and relinquishes any and all rights and benefits Executive now has
or may have in the future under the terms of Section 1542 of the Civil Code of the State of
California, which sections reads in full as follows:

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.

Notwithstanding said Code Section, Executive knowingly and voluntarily waives the provisions of
Section 1542 as well as any other statutory or common law provisions of similar effect and
acknowledges and agrees that this waiver is an essential part of this Agreement.

 

11

 

Executive acknowledges that, among other rights, Executive is waiving and releasing any rights
Executive may
have under ADEA, that this General Release is knowing and voluntary, and that the consideration
given for this General Release is in addition to anything of value to which Executive was already
entitled as an executive of the Company. Executive further acknowledge that Executive has been
advised, as required by the Older Workers Benefit Protection Act, that: (a) the General Release
granted herein does not relate to claims under the ADEA which may arise after this General Release
is executed; (b) Executive has the right to consult with an attorney prior to executing this
General Release (although Executive may choose voluntarily not to do so); and (c) Executive has
twenty-one (21) days from the date of termination of Executive’s employment with the Company in
which to consider this General Release (although Executive may choose voluntarily to execute this
General Release earlier, in which case he voluntarily waives the remainder of the twenty-one (21)
day period); (d) Executive has seven (7) days following the execution of this General Release to
revoke his consent to this General Release; and (e) this General Release shall not be effective
until the seven (7) day revocation period has expired.

Executive acknowledges his continuing obligations under the Proprietary Information and
Inventions Agreement and the non-solicitation provisions set forth in Section 6 of the Agreement.
Nothing contained in this General Release shall be deemed to modify, amend or supersede the
obligations set forth in that agreement.

By signing this General Release, Executive hereby represents that he is not aware of any
affirmative conduct or the failure to act on the part of the Company, its officers, directors,
and/or employees concerning the Company’s business practices, its reporting obligations, its
customers and/or prospective customers, its products, and/or any other any other aspect of the
Company’s business, which Executive has any reason to believe rises to the level of unfair,
improper and/or unlawful conduct pursuant to any state or federal law, rule, regulation or order,
including, but not limited to, any rule, regulation or decision promulgated or enforced by the
Securities and Exchange Commission, or which has been promulgated or enforced by any other state or
federal office or administrative body pursuant to the Sarbanes-Oxley Act of 2002.

With the exception of the terms set forth in the Proprietary Information Agreement and the
non-solicitation provisions set forth in Section 6 of the Agreement, this General Release
constitutes the complete, final and exclusive embodiment of the entire agreement between the
Company and Executive with regard to the subject matter hereof. Executive is not relying on any
promise or representation by the Company that is not expressly stated herein and the Company is not
relying on any promise or representation by Executive that is not expressly stated herein. This
General Release may only be modified by a writing signed by both Executive and a duly authorized
officer of the Company.

The Company and Executive agree that for a period of ten (10) years after Executive’s
employment with the Company ceases, they will not, in any communication with any person or entity,
including any actual or potential customer, client, investor, vendor, or business partner of the
Company, or any third party media outlet, make any derogatory or disparaging or critical negative
statements — orally, written or otherwise — against the other, or against the Executive’s estate
or affiliates, any of the Company’s directors, officers or employees. The parties acknowledge and
agree that the obligation on the part of the Company not to make any derogatory statements as set
forth in this paragraph shall only apply to the Company’s officers and directors.

The parties agree that this General Release does not in any way compromise or lessen
Executive’s rights to be indemnified by the Company pursuant to the Company’s by-laws or certificate of incorporation,
or otherwise be covered under any applicable insurance policies that Executive would otherwise be
entitled to receive and/or be covered by.

Except as limited by applicable federal and state corporate and securities laws, and the
requirements of the exchange(s) on which the Company’s shares are listed including, without
limitation, requirements relating to claw-back of executive compensation, and the Company’s
policies relating to such limitations, the parties agree that this General Release does not
preclude Executive from enforcing his ownership rights pertaining to any stock or stock options
which may have been purchased by Executive or granted to Executive by the Company pursuant to a
written stock option grant and/or as memorialized in a written Board Resolution (and as reported
periodically in the Company’s proxy statements).

 

12

 

	 	 	 	 	 	 	 
	CEREPLAST, INC.	 	 	 	FREDERIC SCHEER
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Its
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

 

13

 

EXHIBIT B TO

FREDERIC SCHEER EMPLOYMENT AGREEMENT

Dated August 1, 2011

CEREPLAST, INC.

CONFIDENTIAL INFORMATION AND ASSIGNMENT OF INVENTIONS AGREEMENT

As an employee of Cereplast, Inc., its subsidiary or its affiliate (together, the “Company”), and
in consideration of the compensation now and hereafter paid to me, I agree to the following:

1) Maintaining Confidential Information

a) Company Information. I agree at all times during the term of my employment and
thereafter, except for the benefit of the Company, to hold in the strictest confidence, and not to
use or to disclose to any person, firm or corporation without written authorization of the Board of
Directors of the Company, any trade secrets, confidential knowledge, data or other proprietary
information relating to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of authorship, customer
lists, business plans, financial information or other subject matter pertaining to any Business of
the Company or any of its clients, consultants or licensees.

b) Former Employer Information. I agree that I will not, during my employment with the
Company, improperly use or disclose any proprietary information or trade secrets of my former or
concurrent employers or companies, if any, and that, to my knowledge, I will not bring onto the
premises of the Company any unpublished document or any property belonging to my former or
concurrent employers or companies, if any, unless consented to in writing by said employers or
companies.

c) Third Party Information. I recognize that the Company has received and in the
future will receive from third parties their confidential or proprietary information subject to a
duty on the Company’s part to maintain the confidentiality of such information and to use it only
for certain limited purposes. I agree that I owe the Company and such third parties, during the
term of my employment and thereafter, a duty to hold all such confidential and proprietary
information in the strictest confidence and not to disclose it to any person, firm or corporation
(except as necessary in carrying out my work for the Company consistent with the Company’s
agreement with such third party) or to use it for the Company’s benefit of anyone other than for
the Company or such third party (consistent with Company’s agreement with such third party) without
the express written authorization of the Board of Directors of Cereplast, Inc.

2) Retaining and Assigning Inventions and Original Works

a) Inventions and Original Works Assigned to the Company. I agree that I will promptly
make full written disclosure to the Company, will hold in trust for the sole right and benefit of
the Company, and will and hereby do assign to the Company all my right, title, and interest in and
to any and all inventions, original works of authorship, developments, improvements or trade
secrets which I may solely or jointly conceive or develop or reduce to practice, or cause to be
conceived or developed or reduced to practice, during the period of time I am in the employ of the
Company related to the Business of the Company. For purposes of this Agreement, the “Business of
the Company” is defined as the design and manufacture of dental lasers, ophthalmic lasers for
Presbyopia, and such other expansions related to the Business of the Company or entirely new
markets the Company may enter during the term of my employment. I recognize, however, that Section
2870 of the California Labor Code (as set forth in Exhibit 1 attached hereto) exempts from
assignment under this provision any invention as to which I can prove the
following:

	i)	 	It was developed entirely on my own time; and
	 
	ii)	 	No equipment, supplies, facilities or trade secrets of the Company were used in its development; and

 

14

 

	iii)	 	It did not relate, at the time of its conception or its reduction to practice, to the Business of
the Company or to the Company’s actual or demonstrably anticipated research and development; and
	 
	iv)	 	It did not result from any work performed by me for the Company.

I acknowledge that all original works of authorship which are made by me (solely or jointly
with others) within the scope of my employments and which are protectable by copyright are “works
made for hire,” as that term is defined in the United States Copyright Act (17 USCA, Section 101).

b)  Inventions Assigned to the United States. I agree to assign to the United States
government all my right, title, and interest in and to any and all inventions, original works of
authorship, developments, improvements or trade secrets whenever such full title is required to be
in the United States by a contract between the Company and the United States or any of its
agencies.

c)  Obtaining Letters Patent, Copyrights and Mask Work Rights. I agree that my
obligation to assist the Company to obtain United States or foreign letters patent, copyrights, or
mask work rights covering inventions, works of authorship, and mask works, respectively, assigned
hereunder to the Company shall continue beyond the termination of my employment, but the Company
shall compensate me at a reasonable rate for time actually spent by me at the Company’s request on
such assistance. If the Company is unable because of my mental or physical incapacity or for any
other reason to secure my signature to apply for or to pursue any application for any United States
or foreign letters patent, copyright, or mask rights covering inventions or other rights assigned
to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly
authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and
stead to execute and file any such applications and to do all other lawfully permitted acts to
further the prosecution and issuance of letters patent, copyrights, and mask work rights with the
same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any
and all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any
patents, copyrights, or mask work rights resulting from such application assigned hereunder to the
Company.

d)  Exception to Assignments. I understand that the provisions of this Agreements
requiring assignment to the Company do not apply to any invention which qualifies fully under the
provisions of Section 2870 of the California Labor Code, a copy of which is attached hereto as
Exhibit 1. I understand that the Company will keep in confidence and will not disclose to third
parties without my consent any confidential information disclosed in writing to the Company
relating to inventions that qualify fully under the provisions of Section 2870 of the California
Labor Code.

3)  Returning Company Documents. I agree that to my best efforts, at the time of leaving the
employ of the Company, I will deliver to the Company (and will not keep in my possession or deliver
to anyone else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items belonging to the Company, its
successors or assigns, which constitutes a trade secret(s) and/or proprietary information of the
Company. In the event of the termination of my employment, I agree to sign and deliver the
“Termination Certification” attached hereto as Exhibit 2.

4)  Representations. I agree to execute any proper oath or verify any proper document
required to carry out the terms of this Agreement. I represent that my performance of all the terms
of this Agreement will not breach any agreement to keep in confidence proprietary information
acquired by me in confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree I will not enter into, any oral or written agreement in conflict herewith.

 

15

 

5) General Provisions

a) Governing Law. This Agreement will be governed by the laws of the State of
California.

b) Entire Agreement. This Agreement, together with the Employment Agreement to which
it is attached as an exhibit, set forth the entire agreement and understanding between the Company
and me relating to the subject matter herein and merges all prior discussions between us. No
modification of or amendment to this Agreement, nor any waiver of any rights under this agreement,
will be effective unless in writing signed by the party to be charged. Any subsequent change or
changes in my duties, salary or compensation will not affect the validity or scope of this
Agreement.

c) Severability. If one or more of the provisions in this Agreement are deemed void by
law, then the remaining provisions will continue in full force and effect.

d) Successors and Assigns. This Agreement will be binding upon my heirs, executors,
administrators and other legal representatives and will be for the benefit of the Company, its
successors, its assigns, and any third parties for which the company has developed proprietary
technology.

e) Notification to New Employer. In the event that I leave the employ of the Company,
I hereby grant consent to notification by the Company to my new employer about my rights and
obligations under this agreement.

Dated as of August 11, 2011

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Frederic Scheer
	 
	 	 	 	 
	 

	 	 	 	 
	Witness
	 	 	 	 

 

16

 

EXHIBIT 1

TO

CONFIDENTIAL INFORMATION AND ASSIGNMENT OF INVENTIONS AGREEMENT

CALIFORNIA LABOR CODE SECTION 2870

EMPLOYMENT AGREEMENTS; ASSIGNMENT OF RIGHTS

“(a) Any provision in an employment agreement which provides that an employee shall assign, or
offer to assign, any of his or her rights in an invention to his or her employer shall not apply to
an invention that the employee developed entirely on his or her own time without using the
employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:

	 	1)	 	Relate at the time of conception or reduction to practice of the
invention to the employer’s business, or actual demonstrably
anticipated research or development of the employee.
	 
	 	2)	 	Result from any work performed by the employee for the employer.

(b) To the extent a provision in an employment agreement purports to require an employee to
assign an invention otherwise excluded from being required to be assigned under subdivision (a),
the provision is against the public policy of this state and is unenforceable.”

 

17

 

EXHIBIT 2

TO

CONFIDENTIAL INFORMATION AND ASSIGNMENT OF INVENTIONS AGREEMENT

CEREPLAST, INC.

TERMINATION CERTIFICATION

This is to certify that based on a reasonably diligent search by me, and to the best of my
knowledge, I do not have in my possession, nor have I failed to return, any devices, records, data,
notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches,
materials, equipment, other documents or property, or reproductions of any aforementioned items
which is a trade secret and/or proprietary information belonging to Cereplast, Inc., its
subsidiaries, affiliates, successors or assigns (together, the “Company”).

I further certify that, to the best of my knowledge, I have complied with all the terms of the
Company’s Confidential Information And Assignment of Inventions Agreement signed by me.

I further agree that, in compliance with the Employee Proprietary Information Agreement, I will
preserve as confidential all trade secrets, confidential knowledge, data or other proprietary
information relating to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of authorship, customer
lists, business plans, financial information or other subject matter pertaining to any Business of
the Company or any of its clients, consultants or licensees which is proprietary and/or
confidential information to the Company.

Date:                                         

	 	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Frederic Scheer

 

18exv10w1

Exhibit
10.1

PURCHASE AND SALE AGREEMENT

By and between

CORNERSTONE REALTY FUND, LLC

as Seller,

and

BIRTCHER ANDERSON REALTY, LLC

as Purchaser

June 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” 
	 	 	2	 
	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” 
	 	 	2	 
	1.20 “Seller” 
	 	 	3	 
	1.21 [Intentionally Omitted.] 
	 	 	3	 
	1.22 “Survey” 
	 	 	3	 
	1.23 “Title Company” 
	 	 	3	 
	1.24 “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 
	 	 	7	 
	 
	 	 	 	 
	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	 

-i-

 

	 	 	 	 	 
	 	 	Page
	5. CONDITIONS TO SELLER’ OBLIGATION TO CLOSE 
	 	 	10	 
	5.1 Purchase Price 
	 	 	10	 
	5.2 Closing Documents 
	 	 	10	 
	5.3 [Intentionally Omitted.] 
	 	 	10	 
	5.4 Other Conditions 
	 	 	10	 
	 
	 	 	 	 
	6. REPRESENTATIONS AND WARRANTIES OF SELLER 
	 	 	10	 
	6.1 Status and Authority of the Seller 
	 	 	10	 
	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 
	 	 	12	 
	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 
	 	 	13	 
	6.12 Operations not in Violation 
	 	 	13	 
	6.13 Cause to be Untrue 
	 	 	13	 
	6.16 AS-IS 
	 	 	14	 
	 
	 	 	 	 
	7. REPRESENTATIONS AND WARRANTIES OF PURCHASER 
	 	 	16	 
	7.1 Status and Authority of the Purchaser 
	 	 	16	 
	7.2 Action of the Purchaser 
	 	 	16	 
	7.3 No Violations of Agreements 
	 	 	16	 
	7.4 Litigation 
	 	 	16	 
	7.5 Prohibited Person 
	 	 	16	 
	7.6 No Approvals 
	 	 	17	 
	7.7 Bankruptcy 
	 	 	17	 
	 
	 	 	 	 
	8. COVENANTS OF THE SELLER 
	 	 	17	 
	8.1 Approval of Leasing 
	 	 	17	 
	8.2 Operation of Property 
	 	 	18	 
	8.3 Compliance with Laws 
	 	 	18	 
	8.4 Compliance with Agreements 
	 	 	18	 
	8.5 Notice of Material Changes or Untrue Representations 
	 	 	18	 
	8.6 Insurance 
	 	 	18	 
	8.7 Cooperation 
	 	 	18	 
	8.8 SNDA 
	 	 	18	 
	 
	 	 	 	 
	9. APPORTIONMENTS 
	 	 	18	 
	9.1 Real Property Apportionments 
	 	 	18	 
	9.2 Closing Costs 
	 	 	20	 
	 
	 	 	 	 
	10. DAMAGE TO OR CONDEMNATION OF PROPERTY 
	 	 	21	 

-ii-

 

	 	 	 	 	 
	 	 	Page
	10.1 Casualty 
	 	 	21	 
	10.2 Condemnation 
	 	 	21	 
	10.3 Survival 
	 	 	22	 
	 
	 	 	 	 
	11. DEFAULT 
	 	 	22	 
	11.1 Default by the Seller 
	 	 	22	 
	11.2 Default by the Purchaser 
	 	 	22	 
	 
	 	 	 	 
	12. Indemnifications 
	 	 	23	 
	12.1 Seller Indemnity 
	 	 	23	 
	12.2 Purchaser Indemnity 
	 	 	23	 
	12.3 Limited Effect 
	 	 	23	 
	12.4 Survival 
	 	 	23	 
	 
	 	 	 	 
	13. Miscellaneous 
	 	 	23	 
	13.1 Brokers 
	 	 	24	 
	13.2 Publicity 
	 	 	24	 
	13.3 Notices 
	 	 	24	 
	13.4 Waivers 
	 	 	25	 
	13.5 Assignment; Successors and Assigns 
	 	 	26	 
	13.6 Severability 
	 	 	26	 
	13.7 Counterparts 
	 	 	26	 
	13.8 Performance on Business Days 
	 	 	26	 
	13.9 Attorneys’ Fees 
	 	 	26	 
	13.10 Section and Other Headings 
	 	 	27	 
	13.11 Time of Essence 
	 	 	27	 
	13.12 Governing Law 
	 	 	27	 
	13.13 ARBITRATION 
	 	 	27	 
	13.14 Like Kind Exchange 
	 	 	28	 
	13.15 Recording 
	 	 	29	 
	13.16 Non-liability of Representatives of Seller 
	 	 	29	 
	13.17 Non-liability of Representatives of Purchaser 
	 	 	29	 
	13.18 Waiver 
	 	 	29	 
	13.19 Further Assurances 
	 	 	29	 
	13.20 [Intentionally Omitted.] 
	 	 	30	 
	13.21 IRS Real Estate Sales Reporting 
	 	 	30	 
	13.22 Entire Agreement 
	 	 	30	 
	13.23 Interrelation 
	 	 	30	 

-iii-

 

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT is made as of June 1, 2011, by and between CORNERSTONE
REALTY FUND, LLC, a Maryland limited liability company (the “Seller”), and BIRTCHER
ANDERSON REALTY, LLC, a Delaware limited liability company (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.

          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.

          1.15 “Permitted Exceptions” shall mean, collectively, (a) liens for taxes,
assessments and governmental charges not yet due and payable or due and payable but not yet
delinquent; (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-Six Million Three Hundred Fifty Thousand
Dollars ($26,350,000.00) 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.

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

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          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 [Intentionally Omitted.]

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

          1.23 “Title Company” shall mean First American Title Company at the office set
forth in Section 12.4: Attention Lance Capel, Title Officer.

          1.24 “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
Monday, August 1, 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 and no/100 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 and no/100 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

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and No/100 Dollars ($100.00), which amount Seller and Purchaser agree has been bargained for as
consideration for Seller’s execution 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, 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 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

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which the Purchaser so objects; provided, however, that Seller shall be obligated to remove,
satisfy or otherwise eliminate, on or before Closing, all monetary liens (other than liens for
property taxes not yet due and payable). 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 first arising after the
Opening of Escrow and not shown on the original Commitment described above (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 instead often (10) days. Notwithstanding the foregoing, Purchaser
shall have no right to disapprove any survey inspection after the expiration of the Title
Inspection Period.

          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 the end of the Title Inspection Period to object in writing to any
matter shown in the Survey. 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. Seller shall, within five (5) days after the Opening of
Escrow, deliver or otherwise make available to Purchaser the Rent Roll and true and correct copies
of documents set forth on Schedule 2 to the extent such documents exist and are in
Seller’s possession or control (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

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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 Friday, July 1, 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. A 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 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 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.

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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 and the Deposit shall be immediately released outside Escrow to Seller. 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.

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.

          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, 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”). 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 12.14 hereof.

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     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 the
Permitted Exceptions;

               (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, and to hold all such rent and other payments in trust
for the benefit of the Purchaser pending transfer;

               (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 material
documents and agreements, plans and specifications and contracts, licenses and permits pertaining
to the Property;

               (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; 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.

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          4.2 Title Policy. The Title Company shall be prepared to issue, upon payment of the
title premium, one or more title 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
tie 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.

          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
leased 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 3,000 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 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 an estoppel certificate to qualify with a knowledge standard (except as to statements
describing the material terms of the lease, or as to the statements that the lease is in full
force and effect; that the tenant is in occupying the subject premises; that the tenant is not in
default under the lease; that the tenant has no offsets, counterclaims or defenses; that the
tenant has no other options to purchase and no options to extend or expand other than as set forth
in the lease; and, that the tenant and the tenant’s signatory have authority to execute the
estoppel certificate), or to conform a statement to the applicable Lease 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 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 leased 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 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

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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 (but not the obligation) to satisfy the condition set forth in this Section 4.3 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
fifteen percent (15%) of the leased rentable square footage of the Improvements of any Property
(measured as of the Opening of Escrow). Seller shall be 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 had it been timely
delivered to Purchaser.

               (d) 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.

          5.3 [Intentionally Omitted.]

          5.4 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.

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          6.2 Action of the Seller. 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) otherwise involves or relates to the Property or any portion
thereof, or to the Leases.

          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, and such Leases have not been amended
except as evidenced by amendments similarly delivered and constitute the entire agreement between
the Seller and the tenants thereunder. Except as otherwise set forth in the Rent Roll : (i) to the
Seller’s actual knowledge each of the Leases is in full force and effect on the terms set forth
therein; (ii) to the Seller’s actual knowledge there are no uncured defaults or circumstances
which with the giving of notice, the passage of time or both would constitute a default thereunder
by Seller; (iii) to the Seller’s actual knowledge each of its tenants is required to pay all sums
and perform all material obligations set forth therein without any concessions, abatements,
offsets, defenses or other basis for relief or adjustment except as disclosed in the Property
Documents; (iv) to the Seller’s actual knowledge, none of its tenants has asserted or has any
defense to, offsets or claims against, rent payable by it or the performance of its other
obligations under its Lease except as disclosed in the Property Documents; (v) except as disclosed
in the Property Documents, the Seller has no outstanding obligation to provide any of its tenants
with an allowance to perform, or to perform at its own expense, any tenant improvements; (vi)
except as disclosed in the Property Documents, none of its tenants has prepaid any rent or other
charges relating to the post-Closing period; (vii) except as disclosed in the Property Documents,
to the Seller’s actual knowledge, none of its tenants has filed a petition in bankruptcy or for
the approval of a plan of reorganization or management under the Federal Bankruptcy Code or under
any other similar state law, or made an admission in writing as to the relief therein provided, or
otherwise become the subject of any proceeding under any federal or state bankruptcy or insolvency
law, or has admitted in writing its inability to pay its

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debts as they become due or made an assignment for the benefit of creditors, or has petitioned for
the appointment of or has had appointed a receiver, trustee or custodian for any of its property,
in any case that would have a material adverse effect on the business or operations of the
Property; (viii) to the Seller’s actual knowledge except as disclosed in the Property Documents,
none of its tenants under a Lease has in the past 12 months requested in writing a modification of
its Lease, or a written release of its obligations under its Lease in any material respect or has
given written notice terminating its Lease, or has been released by Seller of its obligations
thereunder prior to the normal expiration of the term thereof; (ix) except as set forth in the
Property Documents, no guarantor has been released or discharged, voluntarily or involuntarily, or
by operation of law, from any obligation under or in connection with any of its Leases or any
transaction related thereto; and (x) except as disclosed in the Property Documents, all brokerage
commissions currently due and payable with respect to each of its Leases have; been paid. The
information set forth in the Rent Roll is true, correct and complete in all material respects.

          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 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

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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.

          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, nor has Seller received any written notices, reports,
correspondence or other documents, other than those disclosed to Purchaser prior to the Opening
of Escrow, which refer to the presence of any type of hazardous substance or toxic waste on the
Property in violation of applicable laws.

          6.12 Operations not in Violation. Seller has not received any written notice
relating to the operation of the Property from any agency, board, commission, bureau or other
instrumentality of any government, whether federal, state or local, informing Seller that Seller
is in violation of any applicable statutes, rules, regulations and requirements of all federal,
state and local commissions, boards, bureaus and agencies having jurisdiction over Seller and the
Land and Improvements.

          6.13 Cause to be Untrue. Seller will not take or cause to be taken any action or
fail to perform any obligation 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 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 twelve (12) months, 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 12-month 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 claimed breach is more than Twenty Five Thousand and No/100
Dollars ($25,000.00). In no event shall the total liability (exclusive of attorneys fees and costs
recoverable under Section 13.9, below) of Seller to Purchaser for all breaches of all
representations and warranties of Seller in this Agreement

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exceed Five Hundred Thousand Dollars ($500,000.00) per Property, and One Million Five Hundred
Thousand Dollars ($1,500,000) in the aggregate for all Properties, except in the event of
intentional fraud by Seller, in which case the foregoing limitations shall not apply. 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. 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 WARRANTEES, 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

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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 “ASIS”, “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
SELLER’S OBLIGATIONS UNDER THIS AGREEMENT (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, BUYER 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

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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.

/s/ RMA 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 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.

          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.

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          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 twelve (12) months, 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 expiration of the Property Inspection Period,
Seller will not extend, amend or terminate any existing Lease, or enter into any new Lease
without providing Purchaser the following: (a) all material supporting documentation, including,
without limitation, broker’s commissions, tenant improvement allowances, cancellation fees and
any tenant financial information to the extent in Seller’s possession and (b) as to any such
extension, amendment or termination of a Lease, or new Lease which is to be executed after the
expiration of the Property Inspection Period, or which is to become effective after the
expiration of the Property Inspection Period but which was not disclosed to Purchaser prior to
the expiration of the Property Inspection Period, Seller must receive Purchaser’s prior written
approval which may be withheld in Purchaser’s reasonable discretion. In addition, Seller shall
have the right, but not the obligation, to seek the approval of the Purchaser for any amendment,
extension or termination of any existing Lease, or any new Lease, becoming effective during the
Property Inspection Period in the foregoing manner, but in the event Seller does not seek
Purchaser’s approval of any such amendment, extension, termination, or new Lease, Seller shall
nevertheless provide Purchaser with prompt written notice thereof. Purchaser agrees to give
Seller written notice of approval or disapproval of a proposed amendment or termination of a
Lease, or new Lease within five (5) days after Purchaser’s receipt of all of the items described
above. If Purchaser does not respond to Seller’s request within such five (5) day time period,
then Purchaser will be deemed to have disapproved such amendment, termination or new Lease.

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          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 material term,
covenant and condition contained in the Leases and any other material 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 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. The provisions of this Section 8.7 shall
survive the Closing hereunder.

          8.8 SNDA. Upon Purchaser’s written request, Seller hereby agrees to use reasonable
efforts to obtain an executed subordination, non-disturbance and attornment agreement
(“SNDA”) from any Major Tenant on the form required by the tenant’s applicable
lease (if any), or if none, as provided on Purchaser’s lender’s form. Notwithstanding the foregoing,
obtaining any SNDA is not a condition to Closing and Seller shall not be in default for failing
to obtain any SNDA.

     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;

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

                    (v) non-delinquent real estate taxes and assessments other than special assessments, based on
the rates and assessed valuation applicable in the fiscal year for which assessed;

                    (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 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) 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.

               (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, 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 (for the period prior to the Closing Date) and to the
Purchaser (for the period commencing with the Closing Date).

               (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.

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               (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.

               (g) Brokerage commissions, tenant improvement expenses and other amounts payable by the
Seller as landlord under Leases 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 due in connection with the renewal or extension of any existing Lease taking place after the
Opening of Escrow and so approved, shall be the sole responsibility of the Purchaser. 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 (only to
the extent) entered into by the Seller prior to the date hereof and attributable to periods prior
to the Close of Escrow.

               (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 added to the
Purchase Price paid to the Seller.

               (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; provided, however, the
Purchaser shall use commercially reasonable efforts to collect such past due rents and other
amounts, except that the Purchaser shall have no obligation to institute any legal action or
proceeding or otherwise enforce any of its rights and remedies under any Lease in connection with
such commercially reasonable efforts.

          The provisions of this Section 9.1 shall survive the Closing.

            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.

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               (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, (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 13.10 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 of the individual buildings making up
any Property is materially destroyed or damaged by fire or other casualty (i.e., ten percent
(10%) or more of any Property), or in the event that the physical condition of any Property
otherwise suffers a material adverse change resulting in a diminution of value of ten percent
(10%) or mere of such Property, the Seller shall promptly notify the Purchaser of such fact. In
such event, 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 and there shall be credited
against the Purchase Price the 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, a material part of any of the
individual land making up any Property (including access or parking thereto) (i.e., a portion of
and/or interest in any Property comprising ten percent (10%) or more of the value of any
Property), is taken by eminent domain (or is the subject of a pending taking which has not yet
been consummated), the Seller shall notify the Purchaser of such fact promptly after obtaining
knowledge thereof and 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

-21-

 

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
(x) 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 Fifty Thousand
Dollars ($150,000.00), provided that, in the event of a willful breach of this Agreement by Seller,
the foregoing damage limitations of this Section 11.1 (as to the amount of damages) shall not
apply, and provided further that, in the event of fraud on the part of Seller or in the event of a
willful breach of this Agreement by Seller that renders the remedy of specific performance provided
in (y), below, either unavailable or infeasible, the foregoing damage limitations of this Section
11.1 (as to both the amount and type of damages) shall not apply, or (y) 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. Nothing contained in this Section 11.1
shall limit Purchaser’s right to an award of its attorney’s fees and costs pursuant to Section
13.10 below in connection with any legal proceedings instituted by either party or Escrow Agent
with respect to the enforcement of this Agreement.

          11.2 Default by the Purchaser. IF THE TRANSACTION HEREIN CONTEMPLATED FAILS TO CLOSE
SOLELY AS A RESULT OF THE DEFAULT OF THE PURCHASER HEREUNDER AND SELLER IS NOT IN MATERIAL DEFAULT
UNDER THIS AGREEMENT, 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 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

-22-

 

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 SELLER.

	 	 	 

	/s/ RMA
	 	/s/ TGR
	 
	 	 
	Purchaser’s Initials
	 	Seller’s Initials

     12. Indemnifications.

          12.1 Seller Indemnity. Seller agrees to, and hereby does, indemnity, defend and hold
harmless Purchaser from and against all claims, liabilities, damages and expenses (including,
without limitation, reasonable attorneys’ fees and disbursements) which may be asserted by a third
party against Purchaser based solely on the acts or omissions of Seller with regard to the Property
occurring prior to Closing.

          12.2 Purchaser Indemnity. Purchaser agrees to, and hereby does, indemnify, defend and
hold harmless Seller from and against all claims, liabilities, damages and expenses (including,
without limitation, reasonable attorneys’ fees and disbursements) which may be asserted by a third
party against Seller based solely on the acts or omissions of Purchaser with regard to the Property
occurring after Closing.

          12.3 Limited Effect. Nothing contained in this Section 12 is intended to nor shall
in any way limit, expand, or otherwise modify the effect of the AS-IS provisions and related
disclaimer provisions or the release provisions in this Agreement; expand the scope or duration of,
or otherwise modify any of the representations and warranties contained in this Agreement; or
otherwise give rise to any claim or cause of action by either Party against the other, except in
the event of a claim by a third party against Seller or Purchaser which gives rise to the indemnity
obligations set forth in this Section 12. A claim for indemnity against Seller under Section
12.1 shall not by itself give rise to a claim against Seller for a breach of a representation by
Seller under Section 6 unless an independent basis for such breach of representation claim exists.

          12.4 Survival. The indemnities in this Article 12 shall survive the Closing for
twelve (12) months and any claim hereunder must be filed in a court with appropriate jurisdiction
with such twelve (12) month period. Any contrary statute of limitations period is hereby waived by
the parties.

     13. Miscellaneous.

-23-

 

          13.1 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 12.2 shall survive
the Closing.

          13.2 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.

          13.3 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
	 

	 	 	 	[Telecopier No. (949) 250- 0592]

-24-

 

	 	 	 	 	 

	 

	 	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:
	 	Birtcher Anderson Realty, LLC
	 

	 	 	 	31910 Del Obispo
	 

	 	 	 	Ste. 100
	 

	 	 	 	San Juan Capistrano, CA 92675
	 

	 	 	 	Attn: Mr. Phillip Matchett
	 

	 	 	 	Telecopier No. (949) 276-0555
	 
	 	 	 	 
	 

	 	with a copy to:
	 	The Law Offices of Michael F. Sitzer
	 

	 	 	 	4300 Von Karman
	 

	 	 	 	Newport Beach, CA 92660
	 

	 	 	 	Attn: Michael Ferdinand Sitzer
	 

	 	 	 	Telephone: (949) 723-5353
	 

	 	 	 	Facsimile: (949) 723-5354
	 
	 	 	 	 
	 

	 	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.

          13.4 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.

-25-

 

          13.5
Assignment; Successors and Assigns. Subject to Section 13.14, 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, directly or indirectly, provided that Purchaser shall give Seller written notice of such
assignment at least ten (10) 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, directly or indirectly, by the Purchaser, the Purchaser named herein shall
remain liable for the obligations of the “Purchaser” hereunder. 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.

          13.6 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 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.

          13.7 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.

          13.8 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.

          13.9 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.

-26-

 

          13.10 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.

          13.11 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.

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

          13.13 ARBITRATION. ANY PARTY HERETO MAY ELECT TO SUBMIT ANY DISPUTE
HEREUNDER THAT HAS AN AMOUNT IN CONTROVERSY IN EXCESS OF $250,000 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 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

-27-

 

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 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.

     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.

	 	 	 

	/s/ RMA
	 	/s/ TGR
	 
	 	 
	Purchaser’s Initials
	 	Seller’s Initials

          13.14 Like-Kind Exchange. At either parry’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 as a forward or
reverse like-kind exchange for the benefit of the requesting party in accordance with Section
1031 of the Internal Revenue Code and, in the case of a reverse exchange, Rev. Proc. 2000-37,
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

-28-

 

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.

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

          13.16 Non-liability of Representatives of Seller. Except in the event of fraud, 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.

          13.17 Non-liability of Representatives of Purchaser. Except in the event of fraud,
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.

          13.18 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).

          13.19 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.

-29-

 

          13.20 [Intentionally Omitted. ]

          13.21 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.

          13.22 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.

          13.23 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]

-30-

 

     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:
	 	/s/ Terry G. Roussel	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Terry G. Roussel	 	 
	 

	 	Its:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	BIRTCHER ANDERSON REALTY, LLC, 
a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert M. Anderson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert M. Anderson
	 	 
	 

	 	Its:
	 	CEO
	 	 

-31-

 

EXHIBIT “A”

Land 

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

EXHIBIT “A”

 

 

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 Maryland limited liability company (“Assignor”), and BIRTCHER ANDERSON
REALTY, LLC, a Delaware limited liability company (“Assignee”).

RECITALS

     A. Assignor and Assignee are parties to that certain Purchase and Sale Agreement
(the “Purchase Agreement”), dated as of June          , 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 arising after the Effective Date. Assignee hereby
agrees to indemnify, hold harmless and defend Assignor from and against any and all third party
obligations, liabilities, costs and claims actions, expenses and fees (including reasonable
attorney’s fees) arising as a result of or with respect to any of the Contracts that are
attributable to the period of time from and after the Effective Date. Assignor hereby agrees to
indemnify, hold harmless and defend Assignee from and against any and all third party obligations,
liabilities, costs and claims actions, expenses and fees (including reasonable attorney’s fees)
arising as a result of or with respect to any of the Contracts that are attributable to the period
of time prior to 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,

EXHIBIT “B”

-1-

 

IMPLIED OR STATUTORY, AND WITHOUT RECOURSE AGAINST ASSIGNOR, EXCEPT AS
EXPRESSLY SET FORTH HEREIN OR IN THE PURCHASE AGREEMENT.

     EXECUTED to be effective July                    , 2010.

	 	 	 	 	 

	ASSIGNOR:	 	 
	 
	 	 	 	 
	CORNERSTONE REALTY FUND, LLC,

a Maryland limited liability company	 	 
	 
	 	 	 	 
	By:

	 	 
 

	 	 
	Name:

	 	 
 

	 	 
	Its:

	 	 
 

	 	 
	 
	 	 	 	 
	ASSIGNEE:	 	 
	BIRTCHER ANDERSON REALTY, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 
	By: 

Name:

	 	 
 

 
 

	 	  
	Its:

	 	 
 

	 	 

-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 Maryland limited liability company (“Assignor”), and BIRTCHER ANDERSON REALTY, LLC, a
Delaware limited liability company(“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”).

     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 from and 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 May           , 2011.

     3. Indemnities. Assignee agrees to, and hereby does, indemnify, defend and hold
harmless Assignor from and against all claims, liabilities, damages and expenses (including,
without limitation, reasonable attorneys’ fees and disbursements) which may be asserted against or
imposed on or incurred by Assignor by reason of Assignee’s failure to perform any of its
obligations under the Leases after the Effective Date, and including, without limiting the
generality of the foregoing, by reason of Assignee’s disposition or alleged disposition of any of
the Security Deposits. Assignor agrees to, and hereby does, indemnify, defend and hold harmless
Assignee from and against all claims, liabilities, damages and expenses (including without
limitation, reasonable attorneys’ fees and disbursements) which may be asserted against or imposed
on or incurred by Assignee by reason of Assignor’s failure to perform any of its obligations under
the Leases prior to the Effective Date, and including, without
limiting the generality of the
foregoing, by reason of Assignor’s disposition or alleged disposition of any of the Security
Deposits.

     4. 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,

EXHIBIT “C”

-1-

 

(b) contempt proceedings, (c) garnishment, levy and debtor and third-party
examination, (d) discovery, and (e) bankruptcy litigation.

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

     6. 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.

	 	 	 	 	 	 	 

	 	 	ASSIGNOR.	 	 
	 
	 	 	 	 	 	 
	 	 	CORNERSTONE REALTY FUND, LLC,

a Maryland limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Its:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	BIRTCHER ANDERSON REALTY, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Its:
	 	 
 

	 	 

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 Maryland limited liability company (“Assignor”), and BIRTCHER ANDERSON REALTY,
LLC, a Delaware limited liability company (“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 June
     , 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 from
and
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 Maryland limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
 
	 

	 	Name:	 	 
	 

	 	 	 	 
 
	 

	 	Its:	 	 
	 

	 	 	 	 
 
	 
	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	BIRTCHER ANDERSON REALTY, LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
 
	 

	 	Name:	 	 
	 

	 	 	 	 
 
	 

	 	Its:	 	 
	 

	 	 	 	 
 

-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

To: [lender]

Re: Lease Pertaining to _____________ (the “Project”)

*[ ] = may not be subject to “ knowledge qualification”

Ladies and Gentlemen: _______

     The undersigned, as tenant (“Tenant”), hereby states and declares as follows:

     1. Tenant is the lessee under that certain lease (the “Lease”) pertaining to the
Project which is dated ______________.

     2. The name of the current Landlord is: _________________________.

     3. The Lease is for the following portion of the Project ____________ (the “Demised
Premises”).

     4. The Lease has not been modified or amended except by the following documents (if none, so
state): ________________

     5. The
initial term of the Lease commenced on _____, 2
__ and shall expire on _____, 2
__, unless sooner terminated in accordance with the terms of
the Lease. Tenant has no option to renew
or extend the term of the Lease, except as follows (if none, so state): ________________

     6. The Lease, as it may have been modified or amended, contains the entire agreement of
Landlord and Tenant with respect to the Demised Premises, and is in full force and effect.

     7. As of the date hereof, Tenant is occupying the Demised Premises and is paying rent on a
current basis under the Lease.

          a. The minimum monthly or base rent currently being paid by Tenant for the Demised Premises
pursuant to the terms of the Lease is $_____ per month.

          b. Percentage rent (“Percentage Rent”), if any, due under the Lease has been paid through ____
and the amount of Percentage Rent for the last period paid was $______.

EXHIBIT “F”

-1-

 

          c. Common area maintenance, taxes, insurance and other charges (the “Reimbursable”), if any,
due under the Lease have been paid through ________.

     8. Tenant has accepted possession of the Demised Premises, and all items of an executory
nature relating thereto to be performed by Landlord have been completed, including, but not limited
to, completion of construction thereof (and all other improvements required under the Lease) in
accordance with the terms of the Lease and within the time periods set forth in the Lease. Landlord
has paid in full any required contribution towards work to be performed by Tenant under the Lease,
except as follows (if none, so state): ________.

     9. No default or event that with the passage of time or notice would constitute a default
(hereinafter collectively a “Default”) on the part of Tenant exists under the Lease in the
performance of the terms, covenants and conditions of the Lease required to be performed on the
part of Tenant.

     10. To the best of Tenant’s knowledge, no Default on the part of Landlord exists under the
Lease in the performance of the terms, covenants and conditions of the Lease required to be
performed on the part of Landlord.

     11. Tenant has no option or right to purchase all or any part of the Project.

     12. Tenant has not assigned, sublet, transferred or otherwise disposed of its interest in the
Lease and/or the Premises, or any part thereof.

     13. Neither
the Lease nor any obligations of Tenant thereunder have been guaranteed by any
person or entity, except as follows (if none, so state):

     14. No hazardous substance are being generated, used, handled, stored or disposed or by Tenant
on the Demised Premises or on the Project in violation of any applicable laws, rules or regulations
or the terms of the Lease.

     15. No
prepayments of rentals due under the Lease have been made for more
than one month in
advance. No security or similar deposit has been made under the Lease, except for the sum of $_____
which has been deposited by Tenant with Landlord pursuant to the terms of the Lease.

     16. Tenant has no defense as to its obligations under the Lease and asserts no setoff, claim
or counterclaim against Landlord.

     17. The undersigned is authorized to execute this Tenant Estoppel Certificate on behalf of
Tenant.

-2-

 

     18. This Tenant Estoppel Certificate may be executed in any number of separate counterparts,
each of which shall be deemed an original, but all of which, collectively and separately, shall
constitute one and the same instrument.

Very truly yours,

	 	 	 	 	 
	TENANT:	 
	,	 
	a 	 	 

	 	 	 	 	 
	By  	 	 
	 	Name:  	 	 
	 	Its: 	 	 

-3-

 

	 	 	 	 	 

Schedule 1

Rent Roll

[See attached copy.]

Schedule 1

 

			
	Rent Roll — Occupancy Summary
	 	Page 1

As of Date: 05/01/2011 Show All Amounts: Monthly

Property: Nor mandie Business Center (320-001)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	Date	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	To	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	20920
	 	Fastenal Co Branch 0	 	Industrial	 	06/01/2008	 	05/31/2013	 	 	1826	 	 	 	3,358	 	 	 	4,029.60	 	 	 	1.20	 	 	 	0.00	 	 	 	0.00	 	 	 	1.20	 
	20922
	 	Pacific Coffee Mix,	 	Industrial	 	05/01/2011	 	06/30/2013	 	 	792	 	 	 	2,937	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20924
	 	VACANT	 	N/A	 	 	 	—	 	 	2,541	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20926
	 	VACANT	 	N/A	 	 	 	—	 	 	2,520	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20928
	 	VACANT	 	N/A	 	 	 	—	 	 	1,830	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20930
	 	Alpha Floonng	 	Industrial	 	12/01/2010	 	12/31/2011	 	 	396	 	 	 	1,825	 	 	 	1,551.25	 	 	 	0.85	 	 	 	0.00	 	 	 	0.10	 	 	 	0.95	 
	20932
	 	Total Office support	 	Industrial	 	05/01/2010	 	06/30/2012	 	 	792	 	 	 	1,825	 	 	 	1,530.00	 	 	 	0.84	 	 	 	0.00	 	 	 	0.10	 	 	 	0.94	 
	20934
	 	SC Global, Inc	 	Industrial	 	04/01/2011	 	03/31/2012	 	 	366	 	 	 	1,825	 	 	 	1,715.50	 	 	 	0.94	 	 	 	0.00	 	 	 	0.10	 	 	 	1.04	 
	20936
	 	Beachbikes.Net	 	Industrial	 	12/01/2010	 	07/31/2011	 	 	243	 	 	 	2,190	 	 	 	2,190.00	 	 	 	1.00	 	 	 	0.00	 	 	 	0.10	 	 	 	1.10	 
	20938
	 	Beachbikes. Net	 	Industrial	 	12/01/2010	 	07/31/2011	 	 	243	 	 	 	2,190	 	 	 	2,190.00	 	 	 	1.00	 	 	 	0.00	 	 	 	0.10	 	 	 	1.10	 
	20940
	 	VACANT	 	N/A	 	 	 	—	 	 	1,825	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20942
	 	VACANT	 	N/A	 	 	 	—	 	 	2,134	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20944
	 	VACANT	 	N/A	 	 	 	—	 	 	3,167	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20950-A
	 	Belle Beauty, Inc.	 	Industrial	 	07/01/2009	 	06/30/2011	 	 	730	 	 	 	1,211	 	 	 	1,207.00	 	 	 	1.00	 	 	 	0.00	 	 	 	0.10	 	 	 	1.10	 
	20950-B
	 	Po King Cheung Yue	 	Industrial	 	04/15/2011	 	—	 	 	1,200	 	 	 	1,060.40	 	 	 	0.88	 	 	 	0.00	 	 	 	0.10	 	 	 	0.98	 	 	 	1,180.40	 
	20950-C
	 	Creative Art Center,	 	Industrial	 	04/01/2011	 	04/30/2012	 	 	396	 	 	 	1,205	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	20950-D
	 	Asami Takemura & Dai	 	Industrial	 	06/01/2010	 	05/31/2012	 	 	731	 	 	 	1,206	 	 	 	1,260.00	 	 	 	1.04	 	 	 	0.00	 	 	 	0.10	 	 	 	1.14	 
	20950-E
	 	Kesco USA., a CA Cor	 	Industrial	 	07/01/2010	 	06/30/2012	 	 	731	 	 	 	1,200	 	 	 	1,024.25	 	 	 	0.85	 	 	 	0.00	 	 	 	0.10	 	 	 	0.95	 
	20950-F
	 	Chiakj Tagashira & Y	 	Industrial	 	06/01/2010	 	05/31/2013	 	 	1096	 	 	 	1,200	 	 	 	1,323.00	 	 	 	1.10	 	 	 	0.00	 	 	 	0.10	 	 	 	1.20	 
	20950-G
	 	Sean Willett	 	Industrial	 	11/01/2009	 	10/31/2011	 	 	730	 	 	 	1,205	 	 	 	1,320.00	 	 	 	1.10	 	 	 	0.00	 	 	 	0.10	 	 	 	1.20	 
	20950-H
	 	Vinet Concepts Corpo	 	Industrial	 	05/01/2011	 	—	 	 	1,206	 	 	 	1,025.00	 	 	 	0.85	 	 	 	0.00	 	 	 	0.10	 	 	 	0.95	 	 	 	1,145.60	 
	20950-I
	 	Lance Richlin	 	Industrial	 	01/01/2011	 	12/31/2012	 	 	731	 	 	 	1,205	 	 	 	1,120.00	 	 	 	0.93	 	 	 	0.00	 	 	 	0.10	 	 	 	1.03	 
	20950-J
	 	GT Banner joann Nune	 	Industrial	 	09/01/2010	 	08/31/2011	 	 	365	 	 	 	1,206	 	 	 	1,086.00	 	 	 	0.90	 	 	 	0.00	 	 	 	0.10	 	 	 	1.00	 
	20950-K
	 	Popkin, Shamir & Gol	 	Industrial	 	06/01/2010	 	05/31/2011	 	 	365	 	 	 	1,200	 	 	 	1,320.00	 	 	 	1.10	 	 	 	0.00	 	 	 	0.10	 	 	 	1.20	 
	20950-L
	 	James Palko	 	Industrial	 	04/01/2011	 	03/31/2012	 	 	366	 	 	 	1,205	 	 	 	938.28	 	 	 	0.78	 	 	 	0.00	 	 	 	0.10	 	 	 	0.88	 
	20950-M
	 	Daniel Acevedo	 	industrial	 	03/01/2011	 	03/31/2012	 	 	397	 	 	 	1,200	 	 	 	964.00	 	 	 	0.80	 	 	 	0.00	 	 	 	0.10	 	 	 	0.90	 
	20950-N
	 	Nudefinition Inc.	 	Industrial	 	04/01/2011	 	12/31/2011	 	 	275	 	 	 	1,200	 	 	 	1,389.15	 	 	 	1.16	 	 	 	0.00	 	 	 	0.10	 	 	 	1.26	 
	20950-O
	 	Michael Turack & Dus	 	Industrial	 	12/01/2010	 	07/31/2011	 	 	243	 	 	 	1,200	 	 	 	960.00	 	 	 	0.80	 	 	 	0.00	 	 	 	0.10	 	 	 	0.90	 
	20950-P
	 	TTS Co. Ltd. a CA Co	 	Industrial	 	07/16/2010	 	07/15/2011	 	 	365	 	 	 	1,200	 	 	 	1,085.40	 	 	 	0.90	 	 	 	0.00	 	 	 	0.10	 	 	 	1.01	 

Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	Total	 	 	Total	 	 	Total	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Charges	 	 	 	 	 
	Total Units	 	Percentage	 	 	 	 	 	 	Total Area	 	 	Percentage	 	 	Total Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	 	 	 
	Occupied
	 	 	23	 	 	 	79.31	%	 	 	35,399	 	 	 	71.63	%	 	 	30,288.83	 	 	 	0.86	 	 	 	0.00	 	 	 	0.08	 	 	 	0.93	 	 	 	3	 
	Vacant
	 	 	6	 	 	 	20.69	%	 	 	14,017	 	28.37%	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	Totals
	 	 	29	 	 	 	 	 	 	 	49,416	 	 	 	 	 	 	 	30,288.83	 	 	 	0.61	 	 	 	0.00	 	 	 	0.06	 	 	 	0.67	 	 	 	37,424.82	 

- 2 -

 

Page 2

As of Date: 05/01/2011 Show All Amounts: Monthly

     Property: Nor mandie Business Center (320-001)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	 	Date	 	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	 	To	 	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	Summary by Lease Types	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Industrial	 	Occupied	 	 	23	 	 	 	79.31	%	 	 	35,399	 	 	 	71.63	%	 	 	30,288.83	 	 	 	0.86	 	 	 	0.00	 	 	 	0.08	 
	 
	 	 	 	N/A	 	Vacant	 	 	6	 	 	 	20.69	%	 	 	14,017	 	 	 	28.37	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

- 3 -

 

As of Date: 05/01/2011 Show All Amounts: Monthly

			
	Property: Interstate Commerce center (320-002)
	 	Page 3

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	Date	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	To	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	1100
	 	ProTek Devices	 	Industrial	 	05/01/2010	 	06/30/2015	 	 	1887	 	 	 	19,930	 	 	 	12,755.00	 	 	 	0.64	 	 	 	0.00	 	 	 	0.29	 	 	 	0.93	 
	2100
	 	Net Flow Research LL	 	Industrial	 	05/01/2010	 	07/31/2014	 	 	1553	 	 	 	8,372	 	 	 	3,851.00	 	 	 	0.46	 	 	 	0.00	 	 	 	0.29	 	 	 	0.75	 
	3100
	 	FUJIFILM North Ameri	 	Industrial	 	12/01/2006	 	03/31/2012	 	 	1948	 	 	 	14,883	 	 	 	10,432.00	 	 	 	0.70	 	 	 	0.00	 	 	 	0.29	 	 	 	0.99	 
	3101
	 	DUPONT AIR PRODUCTS	 	Industrial	 	11/01/2009	 	01/31/2013	 	 	1188	 	 	 	9,974	 	 	 	6,782.21	 	 	 	0.68	 	 	 	0.00	 	 	 	0.29	 	 	 	0.97	 
	4100
	 	DUPONT AIR PRODUCTS	 	Industrial	 	11/01/2009	 	01/31/2013	 	 	1188	 	 	 	18,125	 	 	 	12,324.79	 	 	 	0.68	 	 	 	0.00	 	 	 	0.29	 	 	 	0.97	 
	5100
	 	AIR PRODUCTS & CHEMI	 	Industrial	 	11/01/2009	 	01/31/2013	 	 	1188	 	 	 	12,101	 	 	 	8,108.00	 	 	 	0.67	 	 	 	0.00	 	 	 	0.29	 	 	 	0.96	 

Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	Total	 	 	Total	 	 	Total	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Charges	 	 	 	 	 
	 	 	Total Units	 	Percentage	 	 	 	 	 	Total Area	 	 	Percentage	 	 	Total Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	 	 	 
	 
	 	Occupied	 	6	 	 	100.00	%	 	 	83,385	 	 	 	100.00	%	 	 	54,253.00	 	 	 	0.65	 	 	 	0.00	 	 	 	0.29	 	 	 	0.94	 	 	 	1	 
	 
	 	Vacant	 	0	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 
	 	Totals	 	6	 	 	 	 	 	 	83,385	 	 	 	 	 	 	 	54,253.00	 	 	 	0.65	 	 	 	0.00	 	 	 	0.29	 	 	 	0.94	 	 	 	12,605.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Summary by Lease types	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Industrial	 	 	 	Occupied	 	 	6	 	 	 	100.00	%	 	 	83,385	 	 	 	#####	 	 	 	54,253.00	 	 	 	0.65	 	 	 	0.00	 	 	 	0.29	 

-4-

 

			
	As of Date: 05/01/2011 Show AI Amounts: Monthly
	 	Page 4

Property: Zenith Drive Center ( $20-004)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	Date	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	To	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	500
	 	Campus Cooks, LLC	 	Industrial	 	09/01/2009	 	11/30/2012	 	 	1187	 	 	 	775	 	 	 	646.00	 	 	 	0.83	 	 	 	0.34	 	 	 	0.31	 	 	 	1.48	 
	501
	 	United ATM, Inc.	 	Industrial	 	05/01/2011	 	04/30/2012	 	 	366	 	 	 	1,525	 	 	 	805.00	 	 	 	0.53	 	 	 	0.34	 	 	 	0.31	 	 	 	1.18	 
	502
	 	Paragon Ceramix Labo	 	Industrial	 	04/01/2006	 	07/31/2011	 	 	1948	 	 	 	1,525	 	 	 	1,007.00	 	 	 	0.66	 	 	 	0.34	 	 	 	0.31	 	 	 	1.31	 
	503
	 	DOI Dental Laborator.	 	Industrial	 	08/01/2009	 	07/31/2011	 	 	730	 	 	 	572	 	 	 	495.00	 	 	 	0.87	 	 	 	0.35	 	 	 	0.33	 	 	 	1.55	 
	504A
	 	Prime Building Const	 	Industrial	 	05/01/2011	 	04/30/2012	 	 	366	 	 	 	510	 	 	 	310.00	 	 	 	0.61	 	 	 	0.34	 	 	 	0.31	 	 	 	1.26	 
	506A
	 	Pulmonary Providers	 	Industrial	 	09/01/2010	 	10/31/2012	 	 	792	 	 	 	350	 	 	 	455.26	 	 	 	1.30	 	 	 	0.34	 	 	 	0.31	 	 	 	1.95	 
	506B
	 	Certified Accounting	 	Industrial	 	05/01/2010	 	05/31/2011	 	 	396	 	 	 	750	 	 	 	470.00	 	 	 	0.63	 	 	 	0.34	 	 	 	0.31	 	 	 	1.28	 
	507
	 	Pulmonary Providers	 	Industrial	 	09/01/2010	 	10/31/2012	 	 	792	 	 	 	325	 	 	 	422.74	 	 	 	1.30	 	 	 	0.34	 	 	 	0.31	 	 	 	1.95	 
	509
	 	Avanti Gallery Inc.	 	Industrial	 	05/01/2011	 	07/31/2014	 	 	1188	 	 	 	888	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	511
	 	Beacon3.com	 	Industrial	 	08/01/2009	 	09/30/2012	 	 	1157	 	 	 	678	 	 	 	433.00	 	 	 	0.64	 	 	 	0.34	 	 	 	0.31	 	 	 	1.29	 
	513-508
	 	Alex’s Ceramic Studi	 	Industrial	 	06/01/2010	 	07/31/2012	 	 	792	 	 	 	822	 	 	 	565.00	 	 	 	0.69	 	 	 	0.34	 	 	 	0.31	 	 	 	1.34	 
	515A
	 	Upgrade Nation, Inc.	 	Industrial	 	11/15/2010	 	12/15/2011	 	 	396	 	 	 	1,063	 	 	 	583.00	 	 	 	0.55	 	 	 	0.34	 	 	 	0.31	 	 	 	1.20	 
	516
	 	Hebron Mongolian Pre	 	Industrial	 	01/01/2011	 	02/28/2013	 	 	790	 	 	 	670	 	 	 	367.00	 	 	 	0.55	 	 	 	0.34	 	 	 	0.31	 	 	 	1.20	 
	517
	 	VACANT	 	N/A	 	 	 	 	 	 	933	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	518
	 	Hillcrest Management	 	Industrial	 	03/01/2011	 	02/29/2012	 	 	366	 	 	 	450	 	 	 	588.00	 	 	 	1.31	 	 	 	0.10	 	 	 	0.10	 	 	 	1.51	 
	519A
	 	Custom Mortgage Fund	 	Industrial	 	08/01/2010	 	08/31/2011	 	 	396	 	 	 	350	 	 	 	226.00	 	 	 	0.65	 	 	 	0,34	 	 	 	0.31	 	 	 	1.30	 
	519B
	 	Achieve Real Estate	 	Industrial	 	12/01/2010	 	12/31/2013	 	 	1127	 	 	 	350	 	 	 	147.00	 	 	 	0.42	 	 	 	0,34	 	 	 	0.31	 	 	 	1.07	 
	520
	 	Paper Stories	 	Industrial	 	02/01/2011	 	02/29/2012	 	 	394	 	 	 	400	 	 	 	239.00	 	 	 	0.60	 	 	 	0.34	 	 	 	0.31	 	 	 	1.25	 
	521-523A
	 	Takgahira Dencol La	 	Industrial	 	07/01/2010	 	06/30/2011	 	 	365	 	 	 	771	 	 	 	1,083.00	 	 	 	1.40	 	 	 	0.11	 	 	 	0.00	 	 	 	1.51	 
	522-505
	 	Stargate Travel	 	Industrial	 	07/01/2009	 	06/30/2011	 	 	730	 	 	 	550	 	 	 	558.00	 	 	 	1.01	 	 	 	0.00	 	 	 	0.10	 	 	 	1.11	 
	523B
	 	Paul Vadukumcherry	 	Industrial	 	01/01/2010	 	02/29/2012	 	 	790	 	 	 	545	 	 	 	319.00	 	 	 	0.59	 	 	 	0.34	 	 	 	0.31	 	 	 	1.24	 
	525
	 	WELLBEING CARE, INC.	 	Industrial	 	02/01/2011	 	02/29/2012	 	 	394	 	 	 	100	 	 	 	63.11	 	 	 	0.63	 	 	 	0.34	 	 	 	0.31	 	 	 	1.28	 
	526
	 	WELLBEING CARE, INC.	 	Industrial	 	02/01/2011	 	02/29/2012	 	 	394	 	 	 	350	 	 	 	220.89	 	 	 	0.63	 	 	 	0.34	 	 	 	0.31	 	 	 	1.28	 
	527
	 	Pawel Mroczek	 	Industrial	 	12/01/2010	 	11/30/2011	 	 	365	 	 	 	100	 	 	 	85.00	 	 	 	0.85	 	 	 	0.34	 	 	 	0.31	 	 	 	1.50	 
	530
	 	Central Car Clinic	 	Industrial	 	05/01/2011	 	04/30/2012	 	 	366	 	 	 	6,000	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0,00	 
	538
	 	Seong Jin Huh	 	Industrial	 	03/01/2010	 	03/31/2012	 	 	762	 	 	 	2,100	 	 	 	1,768.00	 	 	 	0.84	 	 	 	0.00	 	 	 	0.02	 	 	 	0.86	 
	540
	 	Cable X Perts, Inc.	 	Industrial	 	01/01/2007	 	03/31/2012	 	 	1917	 	 	 	2,100	 	 	 	924.00	 	 	 	0.44	 	 	 	0.34	 	 	 	0.17	 	 	 	0.95	 
	542
	 	Maine Township	 	Industrial	 	04/01/2010	 	03/31/2013	 	 	1096	 	 	 	2,100	 	 	 	2,175.00	 	 	 	1.04	 	 	 	0.00	 	 	 	0.07	 	 	 	1.11	 
	544
	 	Hour Maid Cleaning S	 	Industrial	 	05/15/2006	 	08/31/2011	 	 	1935	 	 	 	2,400	 	 	 	852.00	 	 	 	0.36	 	 	 	0.34	 	 	 	0.31	 	 	 	1.01	 
	546
	 	Medlogic Sales Inc.	 	Industrial	 	05/01/2011	 	05/31/2012	 	 	397	 	 	 	2,100	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	548
	 	SMDCS, Inc.	 	Industrial	 	06/01/2009	 	03/31/2012	 	 	1035	 	 	 	2,400	 	 	 	344.38	 	 	 	0.14	 	 	 	0.34	 	 	 	0.31	 	 	 	0.80	 
	550
	 	SMDCS, Inc.	 	Industrial	 	01/01/2009	 	03/31/2012	 	 	1186	 	 	 	2,000	 	 	 	286.99	 	 	 	0.14	 	 	 	0.34	 	 	 	0.31	 	 	 	0.80	 
	560
	 	SMDCS, Inc.	 	Industrial	 	01/01/2009	 	03/31/2012	 	 	1186	 	 	 	1,440	 	 	 	206.63	 	 	 	0.14	 	 	 	0.34	 	 	 	0.31	 	 	 	0.80	 
	BILLBRD
	 	Clear Channel Outdoo	 	Industrial	 	07/01/2003	 	06/30/2013	 	 	3653	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	CELL
	 	American Tower	 	Industrial	 	09/01/1998	 	08/31/2028	 	 	10958	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	MAILBOX
	 	VACANT	 	N/A	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	Total	 	 	Total	 	 	Total	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Charges	 	 	 	 	 
	Total Units	 	Percentage	 	 	 	 	 	 	Total Area	 	 	Percentage	 	 	Total Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	 	 	 
	Occupied
	 	 	34	 	 	 	94.44	%	 	 	37,059	 	 	 	97.54	%	 	 	16,645.00	 	 	 	0.45	 	 	 	0.21	 	 	 	0.19	 	 	 	0.84	 	 	 	6	 
	Vacant
	 	 	2	 	 	 	5.56	%	 	 	933	 	 	 	2.46	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	Totals
	 	 	36	 	 	 	 	 	 	 	37,992	 	 	 	 	 	 	 	16,645.00	 	 	 	0.44	 	 	 	0.20	 	 	 	0.18	 	 	 	0.82	 	 	 	66,245.00	 

-5-

 

			
	As of Date: 05/01/2011 Show All Amounts: Monthly
	 	Page 5

Property: Zenith Drive Center (320-004)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Date	 	 	Date	 	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	 	Lease Type	 	 	From	 	 	To	 	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	 
	 
	Summary by Lease Types	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Industrial		 	Occupied	 	 	34	 	 	 	94.44	%	 	 	37,059	 	 	 	97.54	%	 	 	16,645.00	 	 	 	0.45	 	 	 	0.21	 	 	 	0.19	 
	N/A	 	 	Vacant	 	 	2	 	 	 	5.56	%	 	 	933	 	 	 	2.46	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

- 6 -

 

			
	As of Date: 05/01/2011 Show Al
Amounts: Monthly
	 	Page 6

Property: Arrow Business Center (320-005)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	Date	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	To	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	per Area	 	 	Per Area	 
	101
	 	E & K Precision Inc.	 	Industrial	 	09/01/2010	 	08/31/2011	 	 	365	 	 	 	1,600	 	 	 	850.00	 	 	 	0.53	 	 	 	0.00	 	 	 	0.10	 	 	 	0.63	 
	103
	 	E & K Precision Mach	 	Industrial	 	04/01/2011	 	03/31/2012	 	 	366	 	 	 	1,600	 	 	 	1,600.00	 	 	 	1.00	 	 	 	0.00	 	 	 	0.10	 	 	 	1.10	 
	104
	 	E & K Precision Mach	 	Industrial	 	04/01/2011	 	03/31/2012	 	 	366	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	105
	 	Anthony Colosimo	 	Industrial	 	03/06/2010	 	—	 	 	800	 	 	 	840.00	 	 	 	1.05	 	 	 	0.00	 	 	 	0.10	 	 	 	1.15	 	 	 	920.00	 
	106
	 	VACANT	 	N/A	 	 	 	—	 	 	800	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	107
	 	VACANT	 	N/A	 	 	 	—	 	 	800	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	108
	 	VACANT	 	N/A	 	 	 	—	 	 	800	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	109
	 	Micky MeiKi Louie	 	Industrial	 	01/01/2011	 	12/31/2011	 	 	365	 	 	 	800	 	 	 	680.00	 	 	 	0.85	 	 	 	0.00	 	 	 	0.10	 	 	 	0.95	 
	110
	 	William Lomack and	 	Industrial	 	08/01/2010	 	07/31/2012	 	 	731	 	 	 	800	 	 	 	560.00	 	 	 	0.70	 	 	 	0.00	 	 	 	0.10	 	 	 	0.80	 
	111
	 	Yrma Minaya	 	Industrial	 	05/01/2011	 	05/31/2013	 	 	762	 	 	 	800	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	l l 2
	 	Zentee Corporation	 	Industrial	 	07/01/2010	 	—	 	 	800	 	 	 	750.00	 	 	 	0.94	 	 	 	0.00	 	 	 	0.10	 	 	 	1.04	 	 	 	876.00	 
	113
	 	BMW Fillmore Investm	 	Industrial	 	03/15/2010	 	—	 	 	800	 	 	 	640.00	 	 	 	0.80	 	 	 	0.00	 	 	 	0.10	 	 	 	0.90	 	 	 	640.00	 
	114
	 	Richard Wamboidt	 	Industrial	 	08/01/2010	 	07/31/2011	 	 	365	 	 	 	800	 	 	 	640.00	 	 	 	0.80	 	 	 	0.00	 	 	 	0.10	 	 	 	0.90	 
	115
	 	VACANT	 	N/A	 	 	 	—	 	 	800	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	116
	 	Picture Perfect Inst	 	Industrial	 	11/01/2010	 	10/31/2011	 	 	365	 	 	 	1,120	 	 	 	896.00	 	 	 	0.80	 	 	 	0.00	 	 	 	0.10	 	 	 	0.90	 
	117
	 	James B. Busuttil	 	Industrial	 	05/01/2011	 	04/30/2012	 	 	366	 	 	 	1,120	 	 	 	896.00	 	 	 	0.80	 	 	 	0.00	 	 	 	0.10	 	 	 	0.90	 
	118
	 	VACANT	 	N/A	 	 	 	—	 	 	1,120	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	119
	 	Alterian Ghost Facto	 	Industrial	 	03/18/2011	 	05/17/2011	 	 	61	 	 	 	1,120	 	 	 	728.00	 	 	 	0.65	 	 	 	0.00	 	 	 	0.00	 	 	 	0.65	 
	120
	 	VACANT	 	N/A	 	 	 	—	 	 	1,120	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	121
	 	Alfredo S. Miramonte	 	Industrial	 	05/01/2011	 	04/30/2012	 	 	366	 	 	 	1,120	 	 	 	616.00	 	 	 	0.55	 	 	 	0.00	 	 	 	0.10	 	 	 	0.65	 
	122
	 	OEM Experts, Inc.	 	Industrial	 	05/01/2008	 	—	 	 	1,120	 	 	 	2,128.00	 	 	 	1.90	 	 	 	0.00	 	 	 	0.20	 	 	 	2.10	 	 	 	1,087.50	 
	123
	 	OEM Experts, Inc.	 	Industrial	 	05/01/2008	 	—	 	 	1,120	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	1,087.50	 
	124
	 	VACANT	 	N/A	 	 	 	—	 	 	1,120	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	125
	 	Anela Wheels, Inc	 	Industrial	 	01/01/2011	 	01/31/2012	 	 	396	 	 	 	1,120	 	 	 	784.00	 	 	 	0.70	 	 	 	0.00	 	 	 	0.10	 	 	 	0.80	 
	126
	 	Jaime Garcia, an Inc.	 	Industrial	 	10/01/2010	 	11/30/2011	 	 	426	 	 	 	1,120	 	 	 	784.00	 	 	 	0.70	 	 	 	0.00	 	 	 	0.10	 	 	 	0.80	 
	127
	 	VACANT	 	N/A	 	 	 	—	 	 	1,120	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	l28
	 	Cole Wilson Inc a C	 	Industrial	 	04/01/2011	 	03/31/2012	 	 	366	 	 	 	1,120	 	 	 	616.00	 	 	 	0.55	 	 	 	0.00	 	 	 	0.10	 	 	 	0.65	 
	129
	 	VACANT	 	N/A	 	 	 	—	 	 	1,120	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	130
	 	Kracov Creator Inc.	 	Industrial	 	02/15/2011	 	10/31/2013	 	 	990	 	 	 	1,120	 	 	 	784.00	 	 	 	0.70	 	 	 	0.00	 	 	 	0.10	 	 	 	0.80	 
	201
	 	Matthew Kim & Donguk	 	Industrial	 	06/01/2008	 	05/31/2013	 	 	1826	 	 	 	2,160	 	 	 	2,500.00	 	 	 	1.16	 	 	 	0.00	 	 	 	0.12	 	 	 	1.28	 
	202
	 	Herff Jones Inc , an	 	Industrial	 	07/01/2010	 	06/30/2012	 	 	731	 	 	 	2,078	 	 	 	1,558.50	 	 	 	0.75	 	 	 	0.00	 	 	 	0.10	 	 	 	0.85	 
	203
	 	Jose Perez & Juan Me	 	Industrial	 	09/01/2010	 	09/30/2011	 	 	395	 	 	 	2,078	 	 	 	1,710.75	 	 	 	0.82	 	 	 	0.00	 	 	 	0.12	 	 	 	0.94	 
	204
	 	EIC Semiconductor In	 	Industrial	 	02/01/2010	 	03/31/2012	 	 	790	 	 	 	4,096	 	 	 	3,686.40	 	 	 	0.90	 	 	 	0.00	 	 	 	0.12	 	 	 	1.02	 
	205
	 	EIC Semiconductor In	 	Industrial	 	02/01/2010	 	03/31/2012	 	 	790	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	206A
	 	Hermandad Latina Int	 	Industrial	 	10/01/2009	 	09/30/2012	 	 	1096	 	 	 	966	 	 	 	1,245.00	 	 	 	1.29	 	 	 	0.00	 	 	 	0.12	 	 	 	1.41	 
	206B
	 	LWD Inc. and Willes	 	Industrial	 	04/01/2009	 	03/31/2012	 	 	1096	 	 	 	1,082	 	 	 	1,406.00	 	 	 	1.30	 	 	 	0.00	 	 	 	0.12	 	 	 	1.42	 
	207A
	 	Hispanic Media Adver	 	Industrial	 	01/01/2010	 	12/31/2011	 	 	730	 	 	 	2,172	 	 	 	1,584.13	 	 	 	0.73	 	 	 	0.00	 	 	 	0.12	 	 	 	0.85	 
	207B
	 	Hispanic Media Adver	 	Industrial	 	01/01/2010	 	12/31/2011	 	 	730	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	208
	 	Jun B. Kim	 	Industrial	 	11/01/2009	 	10/31/2012	 	 	1096	 	 	 	2,160	 	 	 	2,375.00	 	 	 	1.10	 	 	 	0.00	 	 	 	0.12	 	 	 	1.22	 
	301
	 	Alterian Ghost Ficto	 	Industrial	 	07/01/2009	 	06/30/2011	 	 	730	 	 	 	4,800	 	 	 	4,193.00	 	 	 	0.87	 	 	 	0.00	 	 	 	0.10	 	 	 	0.97	 
	302
	 	Camfel Production, I	 	Industrial	 	10/01/2010	 	11/30/2013	 	 	1157	 	 	 	3,200	 	 	 	2,496.00	 	 	 	0.78	 	 	 	0.00	 	 	 	0.10	 	 	 	0.88	 
	303
	 	Bosense Webster, In	 	industrial	 	06/01/2009	 	05/31/2011	 	 	730	 	 	 	3,200	 	 	 	2,828.80	 	 	 	0.88	 	 	 	0.00	 	 	 	0.10	 	 	 	0.98	 
	304
	 	Biosense Webster, In	 	Industrial	 	07/01/2010	 	06/30/2012	 	 	731	 	 	 	3,200	 	 	 	2,400.00	 	 	 	0.75	 	 	 	0.00	 	 	 	0.10	 	 	 	0.85	 
	305
	 	Biosense Webster, In	 	Industrial	 	05/01/2011	 	04/30/2012	 	 	366	 	 	 	3,200	 	 	 	2,400.00	 	 	 	0.75	 	 	 	0.00	 	 	 	0.10	 	 	 	0.85	 
	306
	 	Anella wheels, inc.	 	industrial	 	01/01/2011	 	01/31/2012	 	 	396	 	 	 	3,200	 	 	 	2,240.00	 	 	 	0.70	 	 	 	0.00	 	 	 	0.10	 	 	 	0.80	 
	307
	 	The David Kracov Gal	 	industrial	 	11/01/2007	 	10/31/2011	 	 	1461	 	 	 	3,200	 	 	 	3,149.00	 	 	 	0.98	 	 	 	0.00	 	 	 	0.10	 	 	 	1.08	 

Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total	 	Total	 	Total	 	Total
	 	 	 	 	 	 	 	 	 	 	Rent	 	Recovery	 	Misc	 	Charges
	Total Units	 	Percentage	 	Total Area	 	Percentage	 	Total Base Rent	 	Per Area	 	Per Area	 	Per Area	 	Per Area
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

-7-

 

As of Date: 05/01/2011 Show All Amounts: Monthly

Property: Arrow Business Center (320-005)

Page 7

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Date	 	 	Date	 	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	 	Lease Type	 	 	From	 	 	To	 	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Occupied
	 	37	 	80.43%	 	 	60,792	 	 	 	87.35	%	 	 	50,564.58	 	 	 	0.83	 	 	 	0.00	 	 	 	0.10	 	 	 	0.93	 	 	 	6	 
	Vacant
	 	9	 	19.57%	 	 	8,800	 	 	 	12.65	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	Totals
	 	46	 	 	 	 	69,592	 	 	 	 	 	 	 	50.564.58	 	 	 	0.73	 	 	 	0.00	 	 	 	0.09	 	 	 	0.82	 	 	 	50,863.04	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Summary by Lease Types	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Industrial	 	Occupied	 	 	37	 	 	 	80.43	%	 	 	60,792	 	 	 	87.35	%	 	 	50,564.58	 	 	 	0.83	 	 	 	0.00	 	 	 	0.10	 
	N/A	 	Vacant	 	 	9	 	 	 	19.57	%	 	 	8,800	 	 	 	12.65	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

-8-

 

As of Date: 05/01/2011 Show All Amounts: Monthly

			
	 	 	 
	Property: Paramount Business Center (320-006)
	 	Page 8

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	Date	 	Days	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	To	 	Occupie	 	 	Area	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	16407
	 	Mr. Paul Ko dba K. P	 	Industrial	 	04/01/2011	 	05/31/2014	 	 	1157	 	 	 	3,654	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.14	 	 	 	0.14	 
	16409
	 	Head Protection Lab	 	Industrial	 	07/01/2008	 	06/30/2011	 	 	1095	 	 	 	3,608	 	 	 	3,381.15	 	 	 	0.94	 	 	 	0.00	 	 	 	0.13	 	 	 	1.07	 
	16411
	 	Panametal Technologi	 	Industrial	 	04/01/2010	 	03/31/2012	 	 	731	 	 	 	2,245	 	 	 	1,526.00	 	 	 	0.68	 	 	 	0.00	 	 	 	0.14	 	 	 	0.82	 
	16413
	 	Hangtime Installers,	 	Industrial	 	08/01/2010	 	07/31/2011	 	 	365	 	 	 	2,220	 	 	 	2,104.89	 	 	 	0.95	 	 	 	0.00	 	 	 	0.12	 	 	 	1.07	 
	16415
	 	Hoveround Corporatio	 	Industrial	 	10/01/2010	 	09/30/2011	 	 	365	 	 	 	2,025	 	 	 	1,914.00	 	 	 	0.95	 	 	 	0.00	 	 	 	0.13	 	 	 	1.08	 
	16419
	 	Ferlo Corp, a CA S-C	 	Industrial	 	10/01/2010	 	04/30/2012	 	 	578	 	 	 	2,676	 	 	 	1,231.00	 	 	 	0.46	 	 	 	0.00	 	 	 	0.14	 	 	 	0.60	 
	26423
	 	Smart Cargo Service,	 	Industrial	 	03/01/2010	 	04/30/2012	 	 	792	 	 	 	3,794	 	 	 	1,797.61	 	 	 	0.47	 	 	 	0.00	 	 	 	0.14	 	 	 	0.61	 
	26425
	 	Five Nine Metal    Desi	 	Industrial	 	10/01/2010	 	10/31/2013	 	 	1127	 	 	 	3,584	 	 	 	1,720.00	 	 	 	0.48	 	 	 	0.00	 	 	 	0.14	 	 	 	0.62	 
	26427
	 	MCH Office Supplies	 	Industrial	 	02/01/2008	 	08/31/2011	 	 	1308	 	 	 	2,195	 	 	 	2,210.66	 	 	 	1.01	 	 	 	0.00	 	 	 	0.14	 	 	 	1.15	 
	26429
	 	Coast 2 Coast Fumiga	 	Industrial	 	04/15/2010	 	—	 	 	2,191	 	 	 	1,978.00	 	 	 	0.90	 	 	 	0.00	 	 	 	0.14	 	 	 	1.04	 	 	 	3,768.00	 
	26431
	 	Mr. Troy Shockley	 	Industrial	 	09/01/2010	 	08/31/2011	 	 	365	 	 	 	2,046	 	 	 	1,186.68	 	 	 	0.58	 	 	 	0.00	 	 	 	0.14	 	 	 	0.72	 

 

 

Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	Total	 	 	Total	 	 	Total	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Charges	 	 	 	 	 
	 	 	Total Units	 	Percentage	 	Total Area	 	 	Percentage	 	 	Total Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	 	 	 
	Occupied
	 	11	 	100.00	% 	 	30,238	 	 	 	100.00	%	 	 	19,049.99	 	 	 	0.63	 	 	 	0.00	 	 	 	0.14	 	 	 	0,77	 	 	 	3	 
	Vacant
	 	0	 	0.00	% 	 	0	 	 	 	0.00	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	Totals
	 	11	 	 	 	 	30,238	 	 	 	 	 	 	 	19,049.99	 	 	 	0.63	 	 	 	0.00	 	 	 	0.14	 	 	 	0.77	 	 	 	33,599.47	 

Summary by Lease Types

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Industrial
	 	Occupied	 	11	 	 	100.00	%	 	 	30,238 # # # # 	#	 	 	19,049.99	 	 	 	0.63	 	 	 	0.00	 	 	 	0.14	 

-9-

 

			
	As of Date: 05/01/2011 Show All
Amounts: Monthly

Property: Shoemaker (CRF) (320-007)
	 	Page 9

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date	 	Date	 	Days	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Total	 
	Unit	 	Lease Name	 	Lease Type	 	From	 	To	 	Occupie	 	Area	 	 	 	 	 	 	Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 
	44
	 	Startless Pipe & Fit	 	Industrial	 	01/01/2004	 	03/31/2012	 	3013	 	 	13,617	 	 	 	 	 	 	 	9,877.00	 	 	 	0.73	 	 	 	0.00	 	 	 	0.08	 	 	 	0.81	 
	44A-B
	 	Munder & Sons Inc.,	 	Industrial	 	02/01/2010	 	01/31/2013	 	1096	 	 	4,844	 	 	 	 	 	 	 	2,664.00	 	 	 	0.55	 	 	 	0.00	 	 	 	0.08	 	 	 	0.63	 
	44C
	 	VACANT	 	N/A	 	 	 	—	 	2,422	 	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	44D
	 	VACANT	 	N/A	 	 	 	—	 	2,422	 	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	44E
	 	VACANT	 	N/A	 	 	 	—	 	2,422	 	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	44F
	 	Francisco Javier Guz	 	Industrial	 	12/01/2010	 	05/31/2011	 	182	 	 	2,422	 	 	 	 	 	 	 	1,743.84	 	 	 	0.72	 	 	 	0.00	 	 	 	0.08	 	 	 	0.80	 
	44G
	 	VACANT	 	N/A	 	 	 	—	 	2,422	 	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	44H
	 	VACANT	 	N/A	 	 	 	—	 	2,422	 	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	44I
	 	Newland international	 	Industrial	 	07/01/2010	 	09/30/2013	 	1188	 	 	7,022	 	 	 	 	 	 	 	3,406.00	 	 	 	0.49	 	 	 	0.00	 	 	 	0.08	 	 	 	0.57	 
	45A
	 	Donghee Shin	 	Industrial	 	05/01/2008	 	09/30/2011	 	1248	 	 	2,380	 	 	 	 	 	 	 	1,800.00	 	 	 	0.76	 	 	 	0.00	 	 	 	0.00	 	 	 	0.76	 
	46B
	 	X3 Management Servic	 	Industrial	 	10/01/2010	 	09/30/2011	 	365	 	 	1,960	 	 	 	 	 	 	 	1,250.00	 	 	 	0.64	 	 	 	0.00	 	 	 	0.00	 	 	 	0.64	 
	46C
	 	X3 Management Servic	 	Industrial	 	10/01/2010	 	09/30/2011	 	365	 	 	1,960	 	 	 	 	 	 	 	1,250.00	 	 	 	0.64	 	 	 	0.00	 	 	 	0.00	 	 	 	0.64	 
	46D
	 	Roofie Bhure	 	Industrial	 	06/01/2010	 	05/31/2011	 	365	 	 	1,960	 	 	 	 	 	 	 	1,420.00	 	 	 	0.72	 	 	 	0.00	 	 	 	0.08	 	 	 	0.80	 
	46E
	 	X3 Management Servic	 	Industrial	 	05/01/2011	 	07/31/2011	 	92	 	 	1,960	 	 	 	 	 	 	 	1,150.00	 	 	 	0.59	 	 	 	0.00	 	 	 	0.00	 	 	 	0.59	 
	45F
	 	OK Jung	 	Industrial	 	03/01/2010	 	02/29/2012	 	731	 	 	1,960	 	 	 	 	 	 	 	1,489.60	 	 	 	0.76	 	 	 	0.00	 	 	 	0.09	 	 	 	0.85	 
	45G
	 	Ashraf Sulaiman	 	Industrial	 	05/01/2010	 	05/17/2011	 	382	 	 	1,960	 	 	 	 	 	 	 	1,652.00	 	 	 	0.84	 	 	 	0.00	 	 	 	0.08	 	 	 	0.92	 
	45H
	 	American Insulation	 	Industrial	 	10/01/2010	 	09/30/2011	 	365	 	 	4,409	 	 	 	 	 	 	 	3,219.00	 	 	 	0.73	 	 	 	0.00	 	 	 	0.09	 	 	 	0.82	 
	461I
	 	Kj Sook Lee	 	Industrial	 	07/01/2010	 	06/30/2013	 	1096	 	 	2,380	 	 	 	 	 	 	 	1,962.00	 	 	 	0.82	 	 	 	0.00	 	 	 	0.08	 	 	 	0.90	 
	46J
	 	VACANT	 	N/A	 	 	 	—	 	1,960	 	 	 	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	46K
	 	Pacific Office Produ	 	Industrial	 	01/01/2010	 	12/31/2012	 	1096	 	 	1,960	 	 	 	 	 	 	 	1,528.00	 	 	 	0.78	 	 	 	0.00	 	 	 	0.09	 	 	 	0.87	 
	46L
	 	Mynor Picado & Ronal	 	Industrial	 	12/01/2010	 	12/31/2012	 	762	 	 	1,960	 	 	 	 	 	 	 	1,176.00	 	 	 	0.60	 	 	 	0.00	 	 	 	0.00	 	 	 	0.60	 
	46M
	 	Glendon Company	 	Industrial	 	05/01/2009	 	04/30/2012	 	1096	 	 	6,960	 	 	 	 	 	 	 	5,846.40	 	 	 	0.84	 	 	 	0.00	 	 	 	0.09	 	 	 	0.93	 
	48A
	 	Crescent, Inc.	 	Industrial	 	01/01/2007	 	12/31/2011	 	1826	 	 	12,300	 	 	 	 	 	 	 	9,718.00	 	 	 	0.79	 	 	 	0.00	 	 	 	0.08	 	 	 	0.87	 

Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	Total	 	 	Total	 	 	Total	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent	 	 	Recovery	 	 	Misc	 	 	Charges	 	 	 	 	 
	 	 	Total Units	 	 	Percentage	 	 	Total Area	 	 	Percentage	 	 	Total Base Rent	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	Per Area	 	 	 	 	 
	Occupied
	 	 	17	 	 	 	73.91	%	 	 	72,014	 	 	 	83.66	%	 	 	51,151.84	 	 	 	0.71	 	 	 	0.00	 	 	 	0.07	 	 	 	0.78	 	 	 	4	 
	Vacant
	 	 	6	 	 	 	26.09	%	 	 	14,070	 	 	 	16.34	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0,00	 	 	 	0.00	 
	Totals
	 	 	23	 	 	 	 	 	 	 	86,084	 	 	 	 	 	 	 	51,151.84	 	 	 	0.59	 	 	 	0.00	 	 	 	0.06	 	 	 	0.65	 	 	 	47,260.55	 

Summary by Lease Types

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Industrial
	 	Occupied	 	 	17	 	 	 	73.91	%	 	 	72,014 83.66	%	 	 	51,151.B4	 	 	 	0.71	 	 	 	0.00	 	 	 	0.07	 
	N/A
	 	Vacant	 	 	6	 	 	 	26.09	%	 	 	14,070 16.34	%	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

-10-

 

Schedule 2 

List of Property Documents 

[See attached copy.]

Schedule 2

 

 

Property Documents (copies of the following)

	•	 	All Environmental, Soils, Air Quality (Mold) and Hazardous Substance Reports and Documents.
	 
	•	 	All Property Inspection Reports (Engineering, Structural/Seismic, Mechanical Systems, ADA Review/Assessment
and Compliance Requirements, etc.),
	 
	•	 	Schedule/List of “As-built” Building Plans
(Specifications, Architectural, Structural, Mechanical,
Electrical, Plumbing, et al) and “As-built” Tenant
Improvement Plans. (Plans will be reviewed
on-site or where seller designates.)
	 
	•	 	Agreements/Warranties/Guaranties with respect to the
improvements and systems.
	 
	•	 	Building Standard Tenant Improvement Specifications.
	 
	•	 	Building Permits and Occupancy Certificates for the base building(s).
	 
	•	 	Building Permits and Occupancy Certificates for all occupied/previously occupied tenant spaces.
	 
	•	 	Zoning/Building Department notice of non-compliance
letters/correspondence and compliance letters.
	 
	•	 	Schedule of current City/County/State Inspection Reports and Licenses (Elevators, Fire
Sprinklers, Garage Operating Permit, etc.).
	 
	•	 	Most current Building/Tenant Space Measurement Report(s).
	 
	•	 	Tenants’/Vendors’ Certificates of Insurance.
	 
	•	 	Notices and related correspondence of pending insurance claims.
	 
	•	 	Schedule of Building Service Contracts/Agreements. Copies of all Service Contracts to be
transferred.
	 
	•	 	Leasing Listing Agreement and Property Management Agreement.
	 
	•	 	Current Title Policy and ALTA Survey. (Title Commitment and/or Preliminary Title Report (PTR) with
complete legible copy of all Schedule A & B documents should be provided by title company when
title is ordered/escrow is opened.)
	 
	•	 	When requested, other documents or materials relating to the Property in Seller’s possession or
control or otherwise available to Seller.

-2-

 

Accounting/Financial Reporting/Operatings Documents and Reports (copies of the
following)

	•	 	Tenant Contact List.
	 
	•	 	Tenant Leases inclusive of all addenda, amendments, riders, exhibits, letter agreements,
lease abstract, and/or similar documents obligating the tenant/landlord, and prior estoppel
certificates.
	 
	•	 	Current Rent Roll inclusive of base rent, all
“other” rent, security deposits, Base Year(5)
Expense Stop(s), base rent increase schedule, and lease
commencment/occoupancy/extensions/expiration dates.
	 
	•	 	2010, 2009 and 2008 CAM/Tax Reconciliation Reports reflecting Base Years/Expense Stops, including
adjustment calculations for all tenants including tenant billing/credit/reconciliation invoices.
	 
	•	 	Estimated CAM/Tax Reimbursement Schedule/Report — 2011 and 2010.
	 
	•	 	Operating Budgets and Supporting Detail including narratives — 2011 and 2010.
	 
	•	 	General Ledger — Monthly and YTD 2011, YE 2010 & YE 2009 with Transaction Detail.
	 
	•	 	Operating Statements — Monthly Operating Statements YTD 2011, Monthly for 12 trailing months, YE
2010, and YE 2009 with supporting schedules. If accrual basis accounting, cash basis statements
should also be provided.
	 
	•	 	Copies of current year’s/past 12 months’ monthly utility bills (electricity, water, sewer, gas,
fuel oil, trash and telephone/security lines).
	 
	•	 	Security Deposit Report/Master List.
	 
	•	 	Tenant Histories — Monthly Billings/Collections — YTD 2011 and YE 2010 or trailing 12 months from
current month.
	 
	•	 	Tenant Delinquencies Schedule — YTD 2011, YE 2010 and YE 2009.
	 
	•	 	Provision for Bad Debt Schedule (current). Bad Debt Write-Offs Schedule: YE 2010 and YE 2009.
	 
	•	 	Schedule of landlord’s Tenant Improvement
(“TP”) Obligations (future) and Schedule of TI’s in
Progress.
	 
	•	 	Schedule of Free/Reduced Rent Obligations (future).
	 
	•	 	Schedule of Contingent Lease Commissions.
	 
	•	 	Schedule of Prepaid Rent.
	 
	•	 	Real and Personal Property Tax assessment notices and bills, including supplementary notices and
bills for Tax Years 2010 (FY 2010/2011), 2009 (FY 2009/2010) and 2008 (FY 2008/2009).
	 
	•	 	Schedule of Capital Improvements, YTD 2011, YE 2010, and YE 2009. Building systems/common area
improvements and tenant-related improvements can be separately scheduled.

-3-

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