Document:

EX-10.90

Exhibit 10.90

SEVERANCE AND CHANGE IN CONTROL AGREEMENT

SEVERANCE AND CHANGE IN CONTROL AGREEMENT dated March 9th, 2011, by and between SMITH & WESSON
HOLDING CORPORATION, a Nevada corporation (“Employer”), and BARRY WILLINGHAM (“Employee”).

WHEREAS, Employee is an executive officer and valued employee of Employer.

WHEREAS, Employer and Employee desire to agree to the results of any termination of Employee’s
employment under certain circumstances.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants set forth in this
Agreement, the parties hereto agree as follows:

1. Definitions.

(a) “Cause” shall mean any termination of Employee’s employment by Employer as a result of
Employee engaging in an act or acts involving a crime, moral turpitude, fraud, or dishonesty;
Employee taking any action that may be injurious to the business or reputation of Employer; or
Employee willfully violating in a material respect Employer’s Corporate Governance Guidelines, Code
of Conduct, or any applicable Code of Ethics, including, without limitation, the provisions thereof
relating to conflicts of interest or related party transactions.

(b) “Change in Control” of Employer shall mean a change in control of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
under the Securities Exchange Act of 1934 as in effect on the date of this Agreement or, if Item
6(e) is no longer in effect, any regulations issued by the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934 that serve similar purposes; provided that, without
limitation, such a Change in Control shall be deemed to have occurred if and when (i) any person
(as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934)
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934)
directly or indirectly of equity securities of Employer representing 20 percent or more of the
combined voting power of Employer’s then-outstanding equity securities, except that this provision
shall not apply to any person currently owning at least five percent or more of the combined voting
power of Employer’s currently outstanding equity securities or to an acquisition of up to 20
percent of the then-outstanding voting securities that has been approved by at least 75 percent of
the members of the Board of Directors who are not affiliates or associates of such person; (ii)
during the period of this Agreement, individuals who, at the beginning of such period, constituted
the Board of Directors of Employer (the “Original Directors”), cease for any reason to constitute
at least a majority thereof unless the election or nomination for election of each new director was
approved (an “Approved Director”) by the vote of a Board of Directors constituted entirely of
Original Directors and/or Approved Directors; (iii) a tender offer or exchange offer is made
whereby the effect of such offer is to take over and control Employer, and such offer is
consummated for the equity securities of Employer representing 20 percent or more of the combined
voting power of Employer’s then-outstanding voting securities; (iv) Employer is merged,
consolidated, or enters into a reorganization transaction with another person and, as the result of
such merger, consolidation, or reorganization, less than 75 percent of the outstanding equity
securities of the surviving or resulting person shall then be owned in the aggregate by the former
stockholders of Employer; or (v) Employer transfers substantially all of its assets to another
person or entity that is not a wholly owned subsidiary of Employer. Sales of Employer’s Common
Stock beneficially owned or controlled by Employee shall not be considered in determining whether a
Change in Control has occurred.

 

 

 

2. Result of Termination Other than for Cause. In the event that Employer terminates
Employee’s employment with Employer other than for Cause, (a) Employer shall pay Employee’s base
salary for a period of 12 months following the effective date of such termination, and (b) Employer
shall pay to Employee, at the same time as cash incentive bonuses are paid to Employer’s other
executives, a portion of the cash incentive bonus deemed by Employer’s Compensation Committee in
the exercise of its sole discretion to be earned by Employee pro rata for the period commencing on
the first day of the fiscal year for which the cash incentive bonus is calculated and ending on the
effective date of termination. The amounts payable under (a) above shall be paid on Employee’s
regular payroll schedule commencing on the first such payment date coincident with or following
your “separation from service” from Employer within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), and shall be treated as a series of separate
payments under Treasury Regulations Section 1.409A-2(b)(2)(iii). The amounts payable under (b)
above shall be made by March 15 of the year following the year to which the bonus applies and would
otherwise be earned.

3. Termination Following Change in Control. In the event of a “Change in Control” of Employer,
Employee, at Employee’s option and upon written notice to Employer, may terminate Employee’s
employment effective on the date of the notice with the same force and effect as if such
termination were other than for Cause as provided in Section 2 above, unless (A) the Change in
Control shall have been approved by the Board of Directors of Employer, (B) the provisions of this
Agreement remain in full force and effect as to Employee, and (C) Employee suffers no reduction in
Employee’s status, duties, authority, or compensation following such Change in Control, provided
that Employee will be considered to suffer a reduction in Employee’s status, duties, authority or
compensation, only if, after the Change in Control, (i) Employee is not the president of the
perimeter security business conducted by Employer and its subsidiaries immediately prior to the
Change in Control, (ii) such company terminates Employee or in any material respect reduces
Employee’s status, duties, authority, or base compensation within one year of the Change in
Control, or (iii) as a result of such Change in Control Employee is required to relocate out of
Nashville, Tennessee (or surrounding areas).

4. Competition and Confidential Information.

(a) Interests to be Protected. The parties acknowledge that Employee will perform essential
services for Employer, its subsidiaries, its employees, and its stockholders during the term of
Employee’s employment with Employer. Employee will be exposed to, have access to, and work with, a
considerable amount of Confidential Information (as defined below). The parties also expressly
recognize and acknowledge that the personnel of Employer and its subsidiaries have been trained by,
and are valuable to, Employer and its subsidiaries and that Employer and its subsidiaries will
incur substantial recruiting and training expenses if Employer or its subsidiaries must hire new
personnel or retrain existing personnel to fill vacancies. The parties expressly recognize that it
could seriously impair the goodwill and diminish the value of business of Employer and its
subsidiaries should Employee compete with Employer or any of its subsidiaries in any manner
whatsoever. The parties acknowledge that this covenant has an extended duration; however, they
agree that this covenant is reasonable and it is necessary for the protection of Employer, its
subsidiaries, its stockholders, and employees. For these and other reasons, and the fact that
there are many other employment opportunities available to Employee if his employment is
terminated, the parties are in full and complete agreement that the following restrictive covenants
are fair and reasonable and are entered into freely, voluntarily, and knowingly. Furthermore, each
party was given the opportunity to consult with independent legal counsel before entering into this
Agreement.

 

2

 

(b) Non-Competition. For the period equal to 12 months after the termination of Employee’s
employment with Employer for any reason, Employee shall not (whether directly or indirectly, as
owner, principal, agent, stockholder, director, officer, manager, employee, partner, participant,
or in any other capacity) engage or become financially interested in any competitive business
conducted within the Restricted Territory (as defined below). As used herein, the term
“competitive business” shall mean any business that sells or provides or attempts to sell or
provide products or services the same as or substantially similar to the products or services sold
or provided by Employer or its subsidiaries during Employee’s employment, and the term “Restricted
Territory” shall mean any state or other geographical area in which Employer or its subsidiaries
sells products or provides services during Employee’s employment.

(c) Non-Solicitation of Employees. For a period of 24 months after the termination of
Employee’s employment with Employer for any reason, Employee shall not directly or indirectly, for
Employee, or on behalf of, or in conjunction with, any other person, company, partnership,
corporation, or governmental entity, solicit for employment, seek to hire, or hire any person or
persons who is employed by or was employed by Employer or its subsidiaries within 12 months of the
termination of Employee’s employment for the purpose of having any such employee engage in services
that are the same as or similar or related to the services that such employee provided for Employer
or any of its subsidiaries.

(d) Confidential Information. Employee shall maintain in strict secrecy all confidential or
trade secret information relating to the business of Employer or its subsidiaries (the
“Confidential Information”) obtained by Employee in the course of Employee’s employment, and
Employee shall not, unless first authorized in writing by Employer, disclose to, or use for
Employee’s benefit or for the benefit of, any person, firm, or entity at any time either during or
subsequent to the term of Employee’s employment, any Confidential Information, except as required
in the performance of Employee’s duties on behalf of Employer. For purposes hereof, Confidential
Information shall include without limitation any materials, trade secrets, knowledge, or
information with respect to management, operational, or investment policies and practices of
Employer or its subsidiaries; any business methods or forms; any names or addresses of customers or
data on customers or suppliers; and any business policies or other information relating to or
dealing with the management, operational, or investment policies or practices of Employer or its
subsidiaries.

 

3

 

(e) Return of Books, Records, Papers, and Equipment. Upon the termination of Employee’s
employment with Employer for any reason, Employee shall deliver promptly to Employer all files,
lists, books, records, manuals, memoranda, drawings, and specifications; all cost, pricing, and
other financial data; all other written or printed materials and computers, cell phones, PDAs, and
other equipment that are the property of Employer or any of its subsidiaries (and any copies of
them); and all other materials that may contain Confidential Information relating to the business
of Employer or any of its subsidiaries, which Employee may then have in Employee’s possession or
control whether prepared by Employee or not.

(f) Disclosure of Information. Employee shall disclose promptly to Employer, or its nominee,
any and all ideas, designs, processes, and improvements of any kind relating to the business of
Employer or any of its subsidiaries, whether patentable or not, conceived or made by Employee,
either alone or jointly with others, during working hours or otherwise, during the entire period of
Employee’s employment with Employer or within six months thereafter.

(g) Assignment. Employee hereby assigns to Employer or its nominee, the entire right, title,
and interest in and to all inventions, discoveries, and improvements, whether patentable or not,
that Employee may conceive or make during Employee’s employment with Employer, or within six months
thereafter, and which relate to the business of Employer or any of its subsidiaries.

(h) Equitable Relief. In the event a violation of any of the restrictions contained in this
Section occurs, Employer shall be entitled to preliminary and permanent injunctive relief as well
as damages and an equitable accounting of all earnings, profits, and other benefits arising from
such violation, which right shall be cumulative and in addition to any other rights or remedies to
which Employer may be entitled. In the event of a violation of any provision of subsection (b),
(c), (f), or (g) of this Section, the period for which those provisions would remain in effect
shall be extended for a period of time equal to that period beginning when such violation commenced
and ending when the activities constituting such violation shall have been finally terminated in
good faith.

(i) Restrictions Separable. If the scope of any provision of this Agreement (whether in this
Section 4 or otherwise) is found by a Court to be too broad to permit enforcement to its full
extent, then such provision shall be enforced to the maximum extent permitted by law. The parties
agree that the scope of any provision of this Agreement may be modified by a judge in any
proceeding to enforce this Agreement, so that such provision can be enforced to the maximum extent
permitted by law. Each and every restriction set forth in this Section 4 is independent and
severable from the others, and no such restriction shall be rendered unenforceable by virtue of the
fact that, for any reason, any other or others of them may be unenforceable in whole or in part.

 

4

 

5. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties hereto; provided that because the obligations of Employee
hereunder involve the performance of personal services, such obligations shall not be delegated by
Employee. For purposes of this Agreement successors and assigns shall include, but not be limited
to, any individual, corporation, trust, partnership, or other entity that acquires a majority of
the stock or assets of Employer by sale, merger, consolidation, liquidation, or other form of
transfer. Employer will require any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business and/or assets of Employer
to expressly assume and agree to perform this Agreement in the same manner and to the same extent
that Employer would be required to perform it if no such succession had taken place. Without
limiting the foregoing, unless the context otherwise requires, the term “Employer” includes all
subsidiaries of Employer.

6. Release of Claims and Non-Disparagement. Employer’s obligations under this Agreement are
contingent upon Employee executing (and not revoking during any applicable revocation period) a
valid and enforceable full and unconditional release of any claims Employee may have against
Employer (whether known or unknown) as of the termination of Employee’s employment. Employer shall
present the release to Employee within ten days of termination, and Employee shall have up to 45
days to consider whether to execute the release; in the event Employee executes the release,
Employee shall have an additional eight calendar days in which to expressly revoke his execution of
the release in writing. In the event that Employee fails to execute the release within the 45
day-period, or in the event Employee formally revokes his execution of the release within eight
calendar days of his execution of the release, then this Agreement shall be null and void.
Employee shall not be entitled to any payments or benefits under this Agreement after termination
of his employment if he does not execute the release or if he revokes the release during any
statutory revocation period, and to the extent that Employer has made any payments to Employee
prior to Employee’s failure to execute the release within the 45 day-period or prior to his
revocation, then Employee shall immediately reimburse Employer for any and all such payments.
Employer’s obligations and all payments under this Agreement shall cease if Employee makes any
written or oral statement or takes any action that Employee knows or reasonably should know
constitutes an untrue, disparaging, or negative comment concerning Employer.

7. Miscellaneous.

(a) Notices. All notices, requests, demands, and other communications required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly given, made, and
received (i) if personally delivered, on the date of delivery, (ii) if by facsimile or e-mail
transmission, upon receipt, (iii) if mailed, three days after deposit in the United States mail,
registered or certified, return receipt requested, postage prepaid, and addressed as provided
below, or (iv) if by a courier delivery service providing overnight or “next-day” delivery, on the
next business day after deposit with such service addressed as follows:

	 	(1)	 	If to Employer:

2100 Roosevelt Avenue

Springfield, Massachusetts 01104

Attention: Chief Executive Officer

Phone: (413) 747-3349

Facsimile: (413) 739-8528

E-Mail: mgolden@smith-wesson.com

 

5

 

	 	(2)	 	If to Employee:

Barry Willingham

4552 Stagecoach Circle

Franklin, Tennessee 37067

Phone: (615) 955-0031

E-Mail: BWillingham@smith-wesson.com

Either party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section 5 for the giving
of notice.

(b) Indulgences; Waivers. Neither any failure nor any delay on the part of either party to
exercise any right, remedy, power, or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege
preclude any other or further exercise of the same or of any other right, remedy, power, or
privilege, nor shall any waiver of any right, remedy, power, or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power, or privilege with respect to any
other occurrence. No waiver shall be binding unless executed in writing by the party making the
waiver.

(c) Controlling Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement, shall be governed by and construed in accordance with
the laws of the state of Massachusetts, notwithstanding any Massachusetts or other
conflict-of-interest provisions to the contrary. Each of the parties hereto irrevocably submits to
the exclusive jurisdiction of the courts of the state of Massachusetts located in Hampden County
and the United States District Court for the District of Massachusetts for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action, or proceeding
may be served on each party hereto anywhere in the world by the same methods as are specified for
the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the
jurisdiction of any such court in any such suit, action, or proceeding and to the laying of venue
in such court. Each party hereto irrevocably waives any objection to the laying of venue of any
such suit, action or proceeding brought in such courts and irrevocably waives any claim that any
such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO
THIS WAIVER.

 

6

 

(d) Binding Nature of Agreement. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, personal representatives, successors, and
assigns, except that no party may assign or transfer such party’s rights or obligations under this
Agreement without the prior written consent of the other party.

(e) Execution in Counterpart. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original as against any party whose signature appears
thereon, and all of which shall together constitute one and the same instrument. This Agreement
shall become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of the parties reflected hereon as the signatories.

(f) Provisions Separable. The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue
of the fact that for any reason any other or others of them may be invalid or unenforceable in
whole or in part.

(g) Entire Agreement. This Agreement contains the entire understanding between the parties
hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous
agreements and understandings, inducements, and conditions, express or implied, oral or written,
except as herein contained. The express terms hereof control and supersede any course of
performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement
may not be modified or amended other than by an agreement in writing.

(h) No Participation in Severance Plans. Except as contemplated by this Agreement, Employee
acknowledges and agrees that the compensation and other benefits set forth in this Agreement are
and shall be in lieu of any compensation or other benefits that may otherwise be payable to or on
behalf of Employee pursuant to the terms of any severance pay arrangement of Employer or any
affiliate thereof, or any other similar arrangement of Employer or any affiliates thereof providing
for benefits upon involuntary termination of employment.

(i) Paragraph Headings. The paragraph headings in this Agreement are for convenience only;
they form no part of this Agreement and shall not affect its interpretation.

(j) Gender. Words used herein, regardless of the number and gender specifically used, shall
be deemed and construed to include any other number, singular or plural, and any other gender,
masculine, feminine, or neuter, as the context requires.

(k) Number of Days. In computing the number of days for purposes of this Agreement, all days
shall be counted, including Saturdays, Sundays, and holidays; provided, however, that if the final
day of any time period falls on a Saturday, Sunday, or holiday, then the final day shall be deemed
to be the next day that is not a Saturday, Sunday, or holiday.

 

7

 

(l) Specified Employee. Notwithstanding any provision of this Agreement to the contrary, if
Employee is a “specified employee” as defined in Section 409A of the Code, Employee shall not be
entitled to any payments or benefits the right to which provides for a “deferral of compensation”
within the meaning of Section 409A, and whose payment or provision is triggered by Employee’s
termination of employment (whether such payments or benefits are provided to Employee under this
Agreement or under any other plan, program or arrangement of the Employer), until (and any payments
or benefits suspended hereby shall be paid in a lump sum on) the earlier of (i) the date which is
the first business day following the six-month anniversary of Employee’s “separation from service”
(within the meaning of Section 409A of the Code) for any reason other than death or (ii) Employee’s
date of death, and such payments or benefits that, if not for the six-month delay described herein,
would be due and payable prior to such date shall be made or provided to Employee on such date.
The Employer shall make the determination as to whether Employee is a “specified employee” in good
faith in accordance with its general procedures adopted in accordance with Section 409A of the Code
and, at the time of the Employee’s “separation of service” will notify the Employee whether or not
he is a “specified employee.”

(m) Savings Clause. This Agreement is intended to satisfy the requirements of Section 409A of
the Code with respect to amounts subject thereto, and shall be interpreted and construed consistent
with such intent; provided that, notwithstanding the other provisions of this subsection and the
paragraph above entitled, “Specified Employee”, with respect to any right to a payment or benefit
hereunder (or portion thereof) that does not otherwise provide for a “deferral of compensation”
within the meaning of Section 409A of the Code, it is the intent of the parties that such payment
or benefit will not so provide. Furthermore, if either party notifies the other in writing that,
based on the advice of legal counsel, one or more of the provisions of this Agreement contravenes
any regulations or Treasury guidance promulgated under Section 409A of the Code or causes any
amounts to be subject to interest or penalties under Section 409A of the Code, the parties shall
promptly and reasonably consult with each other (and with their legal counsel), and shall use their
reasonable best efforts, to reform the provisions hereof to (a) maintain to the maximum extent
practicable the original intent of the applicable provisions without violating the provisions of
Section 409A of the Code or increasing the costs to the Employer of providing the applicable
benefit or payment and (b) to the extent practicable, to avoid the imposition of any tax, interest
or other penalties under Section 409A of the Code upon Employee or the Employer.

(n) Reimbursements. Except as expressly provided otherwise herein, no reimbursement payable
to Employee pursuant to any provisions of this Agreement or pursuant to any plan or arrangement of
Employer shall be paid later than the last day of the calendar year following the calendar year in
which the related expense was incurred, and no such reimbursement during any calendar year shall
affect the amounts eligible for reimbursement in any other calendar year, except, in each case, to
the extent that the right to reimbursement does not provide for a “deferral of compensation” within
the meaning of Section 409A.

 

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

	 	 	 	 	 
	 	SMITH & WESSON HOLDING CORPORATION

 	 
	 	By:  	/s/ Michael F. Golden
 	 
	 	 	Michael Golden 	 
	 	 	President and Chief Executive Officer 	 
	 	 	 
	 	/s/ Barry Willingham
 	 
	 	Barry Willingham 	 
	 	 	 
	 

 

9exv10w1

Exhibit
10.1

PURCHASE AND SALE AGREEMENT

By and between

COP
— DEER VALLEY, LLC, an Arizona limited liability company 

and 

COP — PINNACLE PEAK, LLC, an Arizona limited liability company

as Seller

and

COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, LLC

as Purchaser

August 31, 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 “Deed
	 	 	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 “Survey
	 	 	3	 
	1.22 “Title Company
	 	 	3	 
	1.23 “Title Inspection Period
	 	 	3	 
	 
	 	 	 	 
	2. PURCHASE AND SALE; CLOSING
	 	 	3	 
	2.1 Purchase and Sale
	 	 	3	 
	2.2 Closing
	 	 	3	 
	2.3 Payment of Purchase Price
	 	 	3	 
	2.4 Escrow Agent
	 	 	4	 
	 
	 	 	 	 
	3. TITLE, DILIGENCE MATERIALS, ETC
	 	 	4	 
	3.1 Title
	 	 	4	 
	3.2 Survey
	 	 	5	 
	3.3 Property Documents
	 	 	5	 
	3.4 Inspection Indemnity
	 	 	7	 
	 
	 	 	 	 
	4. CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE
	 	 	7	 
	4.1 Closing Documents
	 	 	7	 
	4.2 Title Policy
	 	 	8	 
	4.3 Additional Conditions
	 	 	9	 
	4.4 Waiver of Conditions
	 	 	9	 
	 
	 	 	 	 
	5. CONDITIONS TO SELLER’ OBLIGATION TO CLOSE
	 	 	10	 
	5.1 Purchase Price
	 	 	10	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	5.2 Closing Documents
	 	 	10	 
	5.3 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
	 	 	10	 
	6.3 No Violations of Agreements
	 	 	10	 
	6.4 Litigation
	 	 	10	 
	6.5 Existing Leases
	 	 	11	 
	6.6 Agreements
	 	 	11	 
	6.7 Not a Foreign Person
	 	 	11	 
	6.8 Prohibited Person
	 	 	11	 
	6.9 No Approval
	 	 	11	 
	6.10 Bankruptcy
	 	 	11	 
	6.11 No Notices
	 	 	11	 
	6.12 Cause to be Untrue
	 	 	12	 
	6.13 Assessments
	 	 	12	 
	6.14 Environmental Matters
	 	 	12	 
	6.15 AS-IS
	 	 	13	 
	 
	 	 	 	 
	7. REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	15	 
	7.1 Status and Authority of the Purchaser
	 	 	15	 
	7.2 Action of the Purchaser
	 	 	15	 
	7.3 No Violations of Agreements
	 	 	15	 
	7.4 Litigation
	 	 	15	 
	7.5 Prohibited Person
	 	 	15	 
	7.6 No Approvals
	 	 	15	 
	7.7 Bankruptcy
	 	 	15	 
	 
	 	 	 	 
	8. COVENANTS OF THE SELLER
	 	 	16	 
	8.1 Approval of Leasing
	 	 	16	 
	8.2 Operation of Property
	 	 	16	 
	8.3 Compliance with Laws
	 	 	16	 
	8.4 Compliance with Agreements
	 	 	16	 
	8.5 Notice of Material Changes or Untrue Representations
	 	 	16	 
	8.6 Insurance
	 	 	16	 
	8.7 Cooperation
	 	 	17	 
	8.8 Encumbrance
	 	 	17	 
	8.9 Contracts
	 	 	17	 
	8.10 Notices
	 	 	17	 
	 
	 	 	 	 
	9. APPORTIONMENTS
	 	 	17	 
	9.1 Real Property Apportionments
	 	 	17	 
	9.2 Closing Costs
	 	 	19	 
	 
	 	 	 	 
	10. DAMAGE TO OR CONDEMNATION OF PROPERTY
	 	 	20	 
	10.1 Casualty
	 	 	20	 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	10.2 Condemnation
	 	 	20	 
	10.3 Survival
	 	 	21	 
	 
	 	 	 	 
	11. DEFAULT
	 	 	21	 
	11.1 Default by the Seller
	 	 	21	 
	11.2 Default by the Purchaser
	 	 	21	 
	 
	 	 	 	 
	12. Miscellaneous
	 	 	22	 
	12.1 Brokers
	 	 	22	 
	12.2 Publicity
	 	 	22	 
	12.3 Notices
	 	 	22	 
	12.4 Waivers
	 	 	23	 
	12.5 Assignment; Successors and Assigns
	 	 	24	 
	12.6 Severability
	 	 	24	 
	12.7 Counterparts
	 	 	24	 
	12.8 Performance on Business Days
	 	 	24	 
	12.9 Attorneys’ Fees
	 	 	25	 
	12.10 Section and Other Headings
	 	 	25	 
	12.11 Time of Essence
	 	 	25	 
	12.12 Governing Law
	 	 	25	 
	12.13 Intentionally Omitted
	 	 	25	 
	12.14 Like-Kind Exchange
	 	 	25	 
	12.15 Recording
	 	 	26	 
	12.16 Non-liability of Representatives of Seller
	 	 	26	 
	12.17 Non-liability of Representatives of Purchaser
	 	 	26	 
	12.18 Waiver
	 	 	26	 
	12.19 Further Assurances
	 	 	26	 
	12.20 IRS Real Estate Sales Reporting; Affidavit of Legal Value
	 	 	26	 
	12.21 Entire Agreement
	 	 	26	 
	12.22 Interrelation
	 	 	26	 

-iii-

 

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT is made as of August 31, 2011, by and between COP — DEER VALLEY,
LLC, an Arizona limited liability company and COP — PINNACLE PEAK, LLC, an Arizona limited
liability company (collectively, the “Seller”), and COLUMBIA INDUSTRIAL PROPERTIES MIDWEST,
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 separately 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 Arizona 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” shall have the meaning 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 “Deed” shall have the meaning set forth in Section 4.1(a).

          1.11 “Improvements” shall mean the existing buildings, fixtures and other structures
and improvements situated on, or affixed to, the Land.

          1.12 “Land” shall mean, (a) the parcel(s) of land described in Exhibit “A”
attached 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 security 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; (c) all use, occupancy, building and operating
licenses, permits, approvals, and development rights, if any; (d) all freely assignable plans and
specifications related to the Land and Improvements, if any, and (e) all water rights, mineral
rights, oil and gas rights and other rights to the subsurface of the Land. 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; (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 two (2) industrial parks commonly
known as “Pinnacle Park” and “Deer Valley” containing five (5) buildings totaling approximately
340,646 square feet, located in the City of Phoenix, County of Maricopa, State of Arizona. Where
applicable, as used herein, the term “Property” shall also mean any one of, or each, of the
Properties.

          1.17 “Purchase Price” shall mean Twenty-Five Million Six Hundred Twenty-Five Thousand
Dollars ($25,625,000.00) 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.

-2-

 

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

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

          1.22 “Title Company” shall mean Chicago Title, as agent for Commonwealth Title
Insurance Company at the office set forth in Section 12.3: Attention Title Officer.

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

     2. PURCHASE AND SALE; CLOSING.

          2.1 Purchase and Sale. In consideration of the payment of the Purchase Price by the
Purchaser to the Seller and for other good and valuable consideration, the Seller hereby agrees to
sell to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, the Property
for the Purchase Price, subject to and in accordance with the terms and conditions of this
Agreement. Purchaser shall have the right, no later than three (3) 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
September 14, 2011 (the “Closing Date”). The Closing shall be the date that the Deed for
both Properties is recorded in the Maricopa County recorder’s office. The Deed shall be recorded
on the same Business Day (Arizona time). Purchaser shall not have the right under this Agreement
to acquire either Property individually or less than both of the Properties, rather, any Closing
that occurs shall be with respect to both of the Properties simultaneously (but Purchaser may
require that Seller convey the Property in separate Deeds, to either the same grantee or two (2)
different grantees).

          2.3 Payment of Purchase Price.

          (a) Within three (3) Business Days of Opening of Escrow pursuant to Section 2.4,
Purchaser shall deposit in escrow with Escrow Agent (as defined in Section 2.4) as the
initial earnest money deposit the sum of Five Hundred Thousand Dollars ($500,000.00) (together with
all interest thereon, the “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. In addition to the Deposit, Purchaser shall, concurrently with its
execution of this Agreement, deliver to Seller the amount of One Hundred Dollars ($100.00), which
amount Seller and Purchaser agree has been bargained for as consideration for Seller’s execution
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. The Deposit shall be held in a separate, interest bearing
account. Purchaser shall pay any of Escrow Agent’s charges for setting up a separate, interest
bearing account.

-3-

 

          If the Deposit is not paid on or before the date three (3) Business Days after the Opening of
Escrow, this Agreement shall automatically stand terminated without further notice in which event
Escrow Agent shall return the Deposit to Purchaser and Seller and Purchaser shall have no further
obligations under this Agreement except those that expressly survive termination hereunder.

               (b) The Purchaser shall deposit in Escrow with Escrow Agent the balance of the Purchase Price
so that funds are released to Seller on the Closing Date, subject to adjustment as provided in
Article 9.

          2.4 Escrow Agent. Purchaser and Seller hereby engage Chicago Title, as agent for
Commonwealth Title Insurance Company (attention: Roxanne Linscomb) at the office set forth in
Section 12.3 (“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 counterpart
of this Agreement from Seller and Purchaser together with the 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 Deed conveying title to the Properties to
Purchaser has been recorded in accordance with Section 2.2. This Agreement will constitute
the sole escrow instructions to Escrow Agent, and the standard form escrow instructions of Escrow
Agent will not be used for this transaction. Specifically, the parties have rejected any
provisions in standard form escrow instructions pertaining to the procedure for cancellation (such
as the 13-day notice provision) as well any provisions indemnifying Escrow Agent for its
negligence, or giving a broker or other third party any interest in the escrow for this
transaction.

     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
before September 6, 2011, (the “Title Inspection Period”), the Purchaser shall
give the Seller written notice of any title exceptions set forth on the Commitment as to which the
Purchaser objects, in its sole and absolute discretion. The Seller shall have the right, but not
the obligation, to attempt to remove, satisfy or otherwise cure any exceptions to title to which
the Purchaser so objects; provided, however, that Seller shall be obligated to remove, satisfy or
otherwise eliminate, on or before Closing, all mortgages, deeds-of-trust and other monetary liens
(“Monetary Items”)

-4-

 

(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. If Seller fails to discharge or cure Monetary
Items at Closing, Purchaser shall have the right to take such title as Seller can convey, with an
abatement of the Purchase Price in the amount of the Monetary Items not cured or discharged, or
terminate this Agreement and receive a refund of the Deposit.

          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 Property 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. Purchaser hereby acknowledges that Seller has delivered 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 the information contained in Seller’s

-5-

 

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. Arizona time
on September 8, 2011 (the “Property Inspection Period”) to review the Property
Documents and perform a feasibility study or studies 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 reasonable access to the
Property to be available to Purchaser and the persons so designated by it during the regular
business hours of the respective Property, and shall afford them the opportunity to inspect and
perform any tests upon the Property that Purchaser deems necessary or appropriate to determine
whether the Property is suitable for Purchaser’s purposes, in Purchaser’s sole and absolute
discretion. At Seller’s request, Seller and/or the involved tenant or its designees shall be
entitled to accompany Purchaser during any such inspection. 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 reasonable 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, 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, Seller shall have the right to demand from Purchaser all third-party, non-proprietary
documents obtained by or for Purchaser with respect to its investigations of the Property, all
without representation on warranties whatsoever. 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 automatically deemed approved by Purchaser as of the end of the
Property Inspection Period. 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 as otherwise expressly set forth in this Agreement. If
Purchaser cancels this Agreement as provided in this Section 3.3, then (i) Escrow Agent
shall return to Seller all documents Seller deposited with Escrow Agent in connection with

-6-

 

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.

     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
$1,000,000.00 per occurrence for bodily injury and property damage.

     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. The obligation in the previous sentence shall survive any termination or cancellation of
this Agreement.

          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, 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.

     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 special warranty deed covering each Property in the form attached hereto as Exhibit
“G” (the “Deed”), duly executed and acknowledged by the Seller,

-7-

 

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;

               (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, 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.

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

-8-

 

          4.3 Additional 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 eighty percent (80%) of the square
footage of the Improvements of each Property (measured as of the Opening of Escrow) and including,
in any event, tenant estoppels from every tenant under a Lease covering 40,000 or more rentable
square feet (each, a “Major Tenant” and collectively, the “Major Tenants”), in the
form prescribed by the particular tenant’s corresponding Lease, and if (and only if) no estoppel
certificate form is prescribed by the particular Lease, then in a form attached hereto as
Exhibit “F”, dated no earlier than thirty (30) days prior to Closing (the “Tenant
Estoppels”). Executed 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, or any lease documents or other agreements not
delivered to Purchaser that would have an adverse material impact on the Lease. Notwithstanding
the foregoing, any modification by a tenant to an estoppel certificate to qualify with a knowledge
standard, 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.

     At such time as Seller delivers to Purchaser executed Tenant Estoppels from tenants
comprising no less than eighty percent (80%) of the square footage of the Improvements of each
Property, including in any event from all Major Tenants, in the form and satisfying the
requirements provided in Section 4.3(b) 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 shall automatically be deemed
satisfied, and Seller shall have no obligation to execute any substitute Tenant Estoppels for any
tenant that has not delivered an Estoppel Certificate, or for any Estoppel Certificate that has
been disapproved by Purchaser. However, if any estoppel discloses a default by Seller under a
lease, Purchaser shall have the right to terminate this Agreement and receive a refund of the
Deposit.

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

          4.4 Waiver of Conditions. If any of the conditions in this Section 4 are not
satisfied as of the Closing Date, Purchaser shall have the right to either (a) waive such condition
and complete Closing, or (b) terminate this Agreement and receive a refund of the Deposit. The
foregoing shall not affect Purchaser’s rights and remedies in the event any of the conditions are
not satisfied as a result of Seller’s default, subject to the limitations in Section 11.1
below.

-9-

 

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

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

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

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

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

          6.4 Litigation. Seller has not received written notice that, nor to Seller’s actual
knowledge is there, any investigation, action, claim or proceeding is pending, asserted, or
threatened, which (i) questions the validity of this Agreement or any action taken or to be taken
pursuant hereto, (ii) involves condemnation or eminent domain proceedings against the Property or
any portion thereof, or (iii) affects the Property or Purchaser after Closing.

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          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 oral or 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. To Seller’s knowledge, the
information set forth in the Rent Roll (which was prepared by Seller’s property manager) 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 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
is required for the execution and delivery by Seller of this Agreement or the performance of its
obligations hereunder.

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

          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.

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

          6.13 Assessments. There are not now any assessments for public improvements against
the Property which are unpaid by the Seller, nor is the Property subject to or affected by any
special assessments for public improvements, whether or not presently a lien thereon.

          6.14 Environmental Matters. Seller has not received any written notification that the
Property contains any Toxic Waste, Hazardous Waste, Industrial Waste or Hazardous Substance as
defined by the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. §6901 et seq.;
the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”), 42 U.S.C. §9601
et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”);
any implementing regulations thereunder, or any other applicable federal, state or local statutes,
regulations, ordinances or rules. To Seller’s actual knowledge, there are no underground tanks on
the Property.

          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 six (6) 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 6-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 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 to 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 actually
disclosed by Seller to Purchaser prior to Closing in writing; and (b) unless the valid claim for
any single claimed breach is more than Twenty-Five Thousand and No/100 Dollars ($25,000.00).
Seller shall be deemed to have disclosed and Purchaser shall have actual knowledge of all matters
in the Underlying Documents, Property Documents and all materials obtained by Seller during its due
diligence investigation. In no event shall the total liability of Seller to Purchaser for all
breaches of all representations and warranties of Seller in this Agreement exceed Six Hundred
Thousand Dollars ($600,000.00) per Property, and One Million Two Hundred Thousand Dollars
($1,200,000) in the aggregate for all Properties. If prior to Closing, 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 as a result of a change in
condition occurring after opening of Escrow, 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.

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          6.15 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, OR 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 WARRANTIES, GUARANTIES, STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING
SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES OR OFFERING CIRCULARS DISTRIBUTED
WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY, THE REAL
ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN,
DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING AND ANY OTHER INFORMATION PERTAINING TO THE PROPERTY
OR THE MARKET AND PHYSICAL ENVIRONMENTS IN WHICH THEY ARE LOCATED. THE PURCHASER ACKNOWLEDGES
THAT, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE DELIVERED TO THE
PURCHASER AT THE CLOSING, (i) THE PURCHASER HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF
RELYING UPON ITS OWN INVESTIGATION OR THAT OF ITS CONSULTANTS WITH RESPECT TO THE PHYSICAL,
ENVIRONMENTAL, ECONOMIC AND LEGAL CONDITION OF THE PROPERTY AND (ii) THE PURCHASER IS NOT RELYING
UPON THE PROPERTY DOCUMENTS OR ANY STATEMENTS, REPRESENTATIONS OR WARRANTIES OF ANY KIND, OTHER
THAN THOSE SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN ANY DOCUMENT TO BE DELIVERED TO THE
PURCHASER AT THE CLOSING, MADE. PRIOR TO THE CLOSING PURCHASER WILL HAVE HAD AN ADEQUATE
OPPORTUNITY TO INSPECT THE PROPERTY AND BECOME FULLY FAMILIAR WITH THE PHYSICAL CONDITION THEREOF
AND, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES MADE IN THIS AGREEMENT, SHALL PURCHASE THE
PROPERTY IN ITS “AS-IS”, “WHERE IS” AND “WITH

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ALL FAULTS” CONDITION ON THE CLOSING DATE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED
HEREIN, IN THE EVENT THAT PURCHASER HAS ACTUAL KNOWLEDGE OF A DEFAULT BY 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 OR ITS OPERATION OR IN ANY OTHER
WAY. IN CONNECTION WITH THE FOREGOING, PURCHASER HEREBY EXPRESSLY AND UNCONDITIONALLY WAIVES THE
BENEFITS OF ANY PROVISION OR PRINCIPLE OF ANY FEDERAL, STATE OR LOCAL LAW OR REGULATION THAT MAY
LIMIT THE SCOPE OR EFFECT OF THE FOREGOING WAIVER AND RELEASE. PURCHASER DOES NOT WAIVE OR RELEASE
SELLER FROM ANY RIGHTS OF CONTRIBUTION WITH RESPECT TO ANY THIRD PARTY CLAIMS ARISING FROM SELLER’S
ACTS OR OMISSIONS DURING SELLER’S PERIOD OF OWNERSHIP OF THE PROPERTY; PROVIDED, HOWEVER, SELLER
SHALL HAVE NO INDEMNITY OF DEFENSE OBLIGATIONS TO PURCHASER.

     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.

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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. The Purchaser has received no written notice that any investigation,
action or proceeding is pending or threatened which questions the validity of this Agreement or any
action taken or to be taken pursuant hereto.

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

          7.6 No Approvals. No authorization, consent, or approval of any governmental
authority 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.

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          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 six (6) 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. During the term of this Agreement, Seller will not extend,
amend or terminate any existing Lease, or enter into any new Lease, or grant consent to any request
for approval made by a tenant under a 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, Seller must receive Purchaser’s prior written (e-mail delivery is acceptable) approval which
may be withheld in Purchaser’s reasonable discretion. Purchaser agrees to give Seller written
notice of approval or disapproval of a proposed amendment or termination of a Lease, or new Lease
within five (5) Business 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.

          8.2 Operation of Property. To continue to operate the Property substantially
consistent with past practices. Seller shall not make any material alterations or improvements to
the Property, except as required under this Agreement or to comply with any of the Leases.

          8.3 Compliance with Laws. To comply in all 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. If any violation notices are received by
Seller after the date of this Agreement and prior to Closing, the Seller shall pay the cost of
complying with such violation notices.

          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.

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          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.

          8.8 Encumbrance. Seller shall not enter into or create any easement, restriction,
lien or other encumbrance on title to the Property.

          8.9 Contracts. Seller shall not enter into any contracts prior to Closing that cannot
be terminated upon 30 days notice, with no penalties. Seller shall terminate all service
contracts, management contracts, brokerage contracts and all other contracts affecting the Property
as of the Closing Date.

          8.10 Notices. Seller shall promptly deliver to Purchaser copies of any written notice
received by Seller between the date of this Agreement and the Closing Date regarding all actions,
suits or other proceedings affecting the Property, or the use, possession or occupancy thereof,
which may adversely affect Purchaser or the Property.

     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 charges payable under the Leases. Delinquent
rents will be handled in accordance with Section 9.1(h) below;

                    (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, subject to Section 9.1(b);

                    (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 and sewer rates and charges;

                    (vii) real property 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.

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          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, electric or other utility meters located at the Property, the
Seller shall obtain readings thereof prior to the Closing Date and the unfixed water rates and
charges, sewer charges, and gas and electricity charges. Seller shall pay all rates, rents and
other charges at Closing. If such readings are not obtainable by the Closing Date, then, at the
Closing, any water rates and charges, sewer charges, rents and gas and electricity charges or other
utility 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.

               (c) If any refunds of real property taxes or assessments, water rates and charges or sewer
charges 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 any 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) No insurance policies of the Seller are to be transferred to the Purchaser, and no
apportionment of the premiums therefor shall be made. Purchaser acknowledges that Seller will
terminate its insurance policies covering the Property and that Purchaser must obtain its own
insurance for the Closing Date onward.

               (e) 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. Any
security deposits delivered in the form of a letter of credit shall be assigned to Purchaser at
Closing, and the original letter of credit shall be delivered to Purchaser at Closing. Prior to
Closing, Seller shall be responsible for obtaining all consents and documents from the issuer of
any such letter of credit that are necessary to assign the same to Purchaser, and Seller shall be
responsible for any transfer fees charged by the issuer of the letter of credit.

               (f) Brokerage commissions, tenant improvement expenses and other amounts payable by the Seller
as landlord (i) 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 (ii)
due in connection with the renewal or extension of any existing Lease exercised by the tenant after
the Opening of Escrow, shall be the sole responsibility of the Purchaser. The Purchaser shall only
receive a credit at Closing for any unfunded or unpaid brokerage commissions, tenant improvement
allowances, moving allowances, free or reduced rent and other amounts payable by the Seller, or
similar tenant inducements, granted by Seller, as landlord under Leases (i) only to the extent
entered into by the Seller prior to the date of this Agreement (including in connection with the
exercise of any renewal or extension of a Lease prior to Opening of Escrow) and (ii) where such
costs are unfunded.

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               (g) 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.

               (h) 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
actual out of pocket expenses incurred by Purchaser in collecting such rents, and second, to rents
due or to become due to Purchaser for periods after Closing, third to rents due for the calendar
month in which the Closing occurs, and fourth, 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.
Seller shall have the right to attempt to collect any past due rents or other amounts following the
Closing; provided, however, Seller may not seek to terminate any Lease or disturb any tenant’s
right of possession.

               (i) Within five (5) days prior to Closing, Seller shall provide Purchaser with a
reconciliation statement with respect to each Lease, comparing the amount of common area
maintenance, real estate tax, insurance and other similar reimbursements (“Additional Rent”)
collected from tenants of the Improvements on an estimated basis during the then current calendar
year (or other applicable billing period), against the total expenditures by Seller for the
corresponding expenses for which such Additional Rents are collected. If the total estimated
amounts collected under any Lease exceed the actual charges payable under such Lease for the period
prior to Closing, Purchaser shall receive a credit therefor at Closing, and if the total estimated
amounts collected under any Lease is less than the actual charges payable under such Lease for the
period prior to Closing, Seller shall receive a credit therefor at Closing. At the time of any
final calculation and collection from the tenants of the Additional Rents for the year in which the
Closing has occurred, whether in the nature of year-end reconciliations or payments in arrears,
Seller or Purchaser shall reprorate the Additional Rents and corresponding charges based upon the
total amount thereof no later than March 1, 2012. If, as a result of such reproration, the
parties determine that either Seller or Purchaser received from the tenants (as adjusted for the
proration made at Closing) an amount of Additional Rent in excess of the amount to which such party
is entitled, such party shall pay such excess to the other party within thirty (30) days after the
reproration is determined. In connection with the foregoing, Purchaser and Seller shall cooperate
with each other concerning the calculation of the reproration.

          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 standard owner’s coverage under the 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 standard owner’s coverage under
an ALTA 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 12.9 of this Agreement.

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

     10. DAMAGE TO OR CONDEMNATION OF PROPERTY.

          10.1 Casualty. If, prior to the Closing, any of the individual buildings located on
any Property is materially destroyed or damaged by fire or other casualty (i.e., ten percent (10%)
or more of any building on a Property or any tenant would have the right to terminate its Lease),
or in the event that the physical condition of any building on a Property otherwise suffers a
material adverse change resulting in a diminution of value of ten percent (10%) or more of such
building, 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 (i.e., a portion of and/or interest in any Property comprising ten
percent (10%) or more of the value of any Property or any tenant would have the right to terminate
its Lease), is taken by eminent domain (or is the subject of a pending taking which has not yet
been consummated, or is sold or conveyed in lieu of such taking), 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

-20-

 

received by the Seller prior to the Closing) and the Seller shall assign to the Purchaser at
the Closing all of the Seller’s right, title and interest in and to all awards, if any, for the
taking, and the Purchaser shall be entitled to receive and keep all awards for the taking of the
Property or portion thereof.

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

     11. DEFAULT.

          11.1 Default by the Seller. If the Closing fails to occur solely as a result of a
default by Seller hereunder, the Purchaser may, as its sole and exclusive remedy, either (a)
terminate this Agreement and receive a refund of its Deposit, plus Purchaser’s actual documented
out-of-pocket third party expenses incurred in conducting its due diligence with respect to the
transaction contemplated by this Agreement, subject to a cap of Fifty Thousand Dollars
($50,000.00), or (b) pursue an action for specific performance provided that Purchaser files such
action in a court with appropriate jurisdiction within thirty (30) days of Seller’s default.

          11.2 Default by the Purchaser. IN THE EVENT OF A DEFAULT BY THE PURCHASER HEREUNDER,
THEN SELLER’S SOLE AND EXCLUSIVE RIGHT AND REMEDY FOR SUCH BREACH SHALL BE TO TERMINATE THIS
AGREEMENT AND CANCEL THE ESCROW BY WRITTEN NOTICE TO PURCHASER AND ESCROW AGENT IN WHICH EVENT
ESCROW AGENT SHALL PAY THE DEPOSIT AND ALL ACCRUED INTEREST THEREON TO SELLER. THE DEPOSIT SHALL
CONSTITUTE LIQUIDATED DAMAGES. THE PARTIES ACKNOWLEDGE AND AGREE THAT IT WOULD BE IMPRACTICABLE OR
EXTREMELY DIFFICULT TO FIX THE ACTUAL DAMAGES THAT SELLER WOULD INCUR AS A RESULT OF THE BREACH BY
PURCHASER OF ITS 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, BUT IS INTENDED TO CONSTITUTE LIQUIDATED
DAMAGES TO SELLER. 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; OR (iii) PURCHASER’S OBLIGATION TO PROVIDE COPIES OF
PURCHASER’S DUE DILIGENCE DOCUMENTS TO SELLER.

	 	 	 

	/s/ GFK	 	/s/ TR
	 	 	 
	Purchaser’s Initials	 	Seller’s Initials

-21-

 

     12. Miscellaneous.

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

          12.2 Publicity. The parties agree that, during the period prior to Closing, and
except as otherwise required by law and except for the exercise of any remedy hereunder or the
performing of due diligence investigation, 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.

          12.3 Notices.

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

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

               (c) All such notices shall be addressed,

-22-

 

	 	 	 	 	 

	 

	 	if to the Seller, to:
	 	Cornerstone Core Properties REIT, Inc.
	 

	 	 	 	1920 Main Street
	 

	 	 	 	Suite 400
	 

	 	 	 	Irvine, CA 92614
	 

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

	 	 	 	Fax No. (949) 250- 0592
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Rutan and Tucker, LLP
	 

	 	 	 	611 Anton Boulevard, 14th Floor
	 

	 	 	 	Costa Mesa, CA 92626
	 

	 	 	 	Attn: Joe Maga, Esq.
	 

	 	 	 	Fax No. (714) 546-9035
	 
	 	 	 	 
	 

	 	if to the Purchaser, to:
	 	Columbia Industrial Properties Midwest, LLC
	 

	 	 	 	120 N. LaSalle Street
	 

	 	 	 	Suite 1750
	 

	 	 	 	Chicago, IL 67602
	 

	 	 	 	Attn: Gary Kobus
	 

	 	 	 	Fax No. (312) 345-8760
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Jeffrey L. Silberman, Esquire
	 

	 	 	 	Kaplin Stewart Meloff Reiter & Stein, P.C.
	 

	 	 	 	910 Harvest Drive
	 

	 	 	 	P.O. Box 3037
	 

	 	 	 	Blue Bell, PA 19422
	 

	 	 	 	Fax No. (610) 684-2028
	 
	 	 	 	 
	 

	 	 	 	Robert G. Higgins, Esquire
	 

	 	 	 	55 East Monroe Street
	 

	 	 	 	Suite 3850
	 

	 	 	 	Chicago, IL 60603
	 

	 	 	 	Fax No. (312) 863-7354
	 
	 	 	 	 
	 

	 	If to Escrow Agent, to:
	 	Chicago Title
	 

	 	 	 	5501 LBJ Freeway, Suite 200
	 

	 	 	 	Dallas, TX 75240
	 

	 	 	 	Attn: Roxanne Q. Linscomb
	 

	 	 	 	Fax No. (214) 987-6788

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

          12.4 Waivers. Subject to the terms of the last paragraph of Section 6, any
waiver of any term or condition of this Agreement, or of the breach of any covenant,

-23-

 

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

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

          12.6 Severability. If any provision of this Agreement shall be held or deemed to be,
or shall in fact be, invalid, inoperative or unenforceable as applied to any particular case in any
jurisdiction or jurisdictions, or in all jurisdictions or in all cases, because of the conflict of
any provision with any constitution or statute or rule of public policy or for any other reason,
such circumstance shall not have the effect of rendering the provision or provisions in question
invalid, inoperative or unenforceable in any other jurisdiction or in any other case or
circumstance or of rendering any other provision or provisions herein contained invalid,
inoperative or unenforceable to the extent that such other provisions are not themselves actually
in conflict with such constitution, statute or rule of public policy, but this Agreement shall be
reformed and construed in any such jurisdiction or case as if such invalid, inoperative or
unenforceable provision had never been contained herein and such provision reformed so that it
would be valid, operative and enforceable to the maximum extent permitted in such jurisdiction or
in such case.

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

          12.8 Performance on Business Days. In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a Business

-24-

 

Day, the time for payment or performance shall automatically be extended to the first Business
Day following such date.

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

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

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

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

          12.13 Intentionally Omitted.

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

-25-

 

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

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

          12.17 Non-liability of Representatives of Purchaser. Subject to Section 11.2,
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.

          12.18 Waiver. The Purchaser hereby acknowledges that it is a sophisticated purchaser
of real properties and that it is aware of all disclosures the Seller is or may be required to
provide to the Purchaser in connection with the transactions contemplated hereby pursuant to any
applicable law, rule or regulation.

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

          12.20 IRS Real Estate Sales Reporting; Affidavit of Legal Value. 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. Purchaser and Seller hereby
authorize Escrow Agent to complete and file the affidavit of legal value required under A.R.S.
§11-1133 on behalf of each party when recording the Deed.

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

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

[SIGNATURES ON FOLLOWING PAGE]

-26-

 

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

	 	 	 	 	 
	 	SELLER:

COP — DEER VALLEY, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

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

	 	 	 	 	 
	 	COP — PINNACLE PEAK, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

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

[signatures continue on the next page]

-27-

 

	 	 	 	 	 
	 	PURCHASER:

COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, LLC,

a Delaware limited liability company

 	 
	 	By:  	Columbia Industrial Properties, LLC,
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its sole member 	 
	 

					
	 	
 	 
	 	By:  	      Lincoln Industrial Manager, LLC.
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its manager 	 
	 

					
	 	
 	 
	 	By:  	             Lincoln Advisory Group, Ltd.,
 	 
	 	 	a Texas __________, 	 
	 	 	its Manager 	 
	 

					
	 	
 	 
	 	By:  	                     Lincoln GP Advisory Group,
 	 
	 	 	Inc., a Texas corporation, 	 
	 	 	its sole general partner 	 
	 

					
	 	
 	 
	 	By:  	/s/ Gary F. Kobus	 
	 	 	Gary F. Kobus, 	 
	 	 	President 	 

-28-

 

	 	 	 	 	 

EXHIBIT “A”

Land

DEER VALLEY

Lots 1 and 2, DEER VALLEY COMMERCE CENTER AMENDED, a subdivision, recorded in Book 727 of Maps,
page 12, records of Maricopa County, Arizona.

PINNACLE PARK

Lot 1, PINNACLE PARK 2, according to Book 760 of Maps, page 21, records of Maricopa County, Arizona
and Affidavit of Correction recorded August 25, 2005 in Document No. 2005-1235738.

-29-

 

EXHIBIT “B”

General Assignment and Assumption

(See attached copy)

-30-

 

ASSIGNMENT AND ASSUMPTION OF CONTRACTS

     This ASSIGNMENT AND ASSUMPTION OF CONTRACTS (this “Assignment”) is made as of _____________,
2011 (“Effective Date”) by and between COP — DEER VALLEY, LLC, an Arizona limited liability
company and COP — PINNACLE PEAK, LLC, an Arizona limited liability company (collectively,
“Assignor”), and COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, 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 August 23, 2011, with respect to that certain real property (the
“Property”) more specifically described in “Exhibit 1” 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, and without representation or warranty of any kind or nature whatsoever,
express or implied, all of Assignor’s right, title, interest, liabilities and obligations in and to
the service contracts and assignable equipment leases (“Contracts”) described on “Exhibit
2” attached hereto and made a part hereof, provided, however, that Assignor makes no
representation or warranty with respect to the assignability of same.

     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.

     ASSIGNEE ACKNOWLEDGES THAT IT HAS INSPECTED THE CONTRACTS AND THAT THIS ASSIGNMENT IS MADE BY
ASSIGNOR AND ACCEPTED BY ASSIGNEE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS, IMPLIED
OR STATUTORY, AND WITHOUT RECOURSE AGAINST ASSIGNOR.

-1-

 

     EXECUTED to be effective ___, 2011.

					
	 	

ASSIGNOR:

COP — DEER VALLEY, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

					
	 	
COP — PINNACLE PEAK, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

[signatures continue on the next page]

-2-

 

					
	 	
ASSIGNEE:

COLUMBIA INDUSTRIAL PROPERTIES

MIDWEST, LLC,

a Delaware limited liability company

 	 
	 	By:  	Columbia Industrial Properties, LLC,
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its sole member 	 
	 

					
	 	
 	 
	 	By:  	          Lincoln Industrial Manager, LLC.
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its manager 	 
	 

					
	 	
 	 
	 	By:  	     Lincoln Advisory Group, Ltd.,
 	 
	 	 	a Texas __________, 	 
	 	 	its Manager 	 
	 

					
	 	
 	 
	 	By:  	          Lincoln GP Advisory Group,
 	 
	 	 	Inc., a Texas corporation, 	 
	 	 	its sole general partner 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Gary F. Kobus, 	 
	 	 	President 	 

-3-

 

	 	 	 	 	 

Exhibit 1 to Assignment and Assumption of Contracts

LEGAL DESCRIPTION

-4-

 

Exhibit 2 to Assignment and Assumption of Contracts

EQUIPMENT LEASES

-1-

 

EXHIBIT “C”

Assignment and Assumption of Leases

[See attached copy.]

-2-

 

ASSIGNMENT AND ASSUMPTION OF LEASES

     This ASSIGNMENT AND ASSUMPTION OF LEASES is hereby entered into as of __________________, 2011
(“Effective Date”), by and between COP — DEER VALLEY, LLC, an Arizona limited liability company
and COP — PINNACLE PEAK, LLC, an Arizona limited liability company (collectively, “Assignor”), and
COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, 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.

     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 shall indemnify, defend and hold Assignee harmless from and
against all losses, costs, damages, liabilities and expenses (including attorneys’ fees) suffered
or incurred by Assignee by reason of Assignor’s failure to comply with any of the terms of the
Lease prior to the Effective Date.

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

-3-

 

     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 and Assumption of Leases, has been executed by Assignor
and Assignee as of the ____ day of __________, 2011.

	 	 	 	 	 
	 	ASSIGNOR:

COP — DEER VALLEY, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

	 	 	 	 	 
	 	COP — PINNACLE PEAK, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

[signatures continue on the next page]

-4-

 

	 	 	 	 	 
	 	ASSIGNEE:

COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, LLC,

a Delaware limited liability company

 	 
	 	By:  	Columbia Industrial Properties, LLC,
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its sole member 	 
	 

					
	 	
 	 
	 	By:  	      Lincoln Industrial Manager, LLC.
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its manager 	 
	 

					
	 	
 	 
	 	By:  	             Lincoln Advisory Group, Ltd.,
 	 
	 	 	a Texas __________, 	 
	 	 	its Manager 	 
	 

					
	 	
 	 
	 	By:  	                     Lincoln GP Advisory Group,
 	 
	 	 	Inc., a Texas corporation, 	 
	 	 	its sole general partner 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Gary F. Kobus, 	 
	 	 	President 	 

-5-

 

	 	 	 	 	 

EXHIBIT 1

-6-

 

EXHIBIT 2

-7-

 

EXHIBIT “D”

Bill of Sale

[See attached copy.]

-8-

 

BILL OF SALE

     This BILL OF SALE (this “Bill of Sale”) is made as of the _____ day of
__________________, 2011 (“Effective Date”), by and between COP — DEER VALLEY, LLC, an
Arizona limited liability company and COP — PINNACLE PEAK, LLC, an Arizona limited liability
company (collectively, “Assignor”), and COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, 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 as of the Effective Date,
to the extent assignable, all right, title and interest of Assignor in and to all tangible personal
property (“Personalty”) located on, and used in connection with the management, maintenance
or operation of that certain land and improvements located on the real property, as more
particularly described in Exhibit “1” hereto and made a part hereof (“Real
Property”), but excluding tangible personal property owned or leased by Assignor’s property
manager or the tenants of the Real Property.

     2. This Bill of Sale is given pursuant to that certain Purchase and Sale Agreement (as
amended, the “Purchase Agreement”) dated as of August 23, 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.]

-1-

 

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

	 	 	 	 	 
	 	ASSIGNOR:

COP — DEER VALLEY, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

	 	 	 	 	 
	 	COP — PINNACLE PEAK, LLC,

an Arizona limited liability company

 	 
	 	By:  	Cornerstone Operating Partnership, LP,
 	 
	 	 	a Delaware limited partnership, 	 
	 	 	its Sole Member 	 
	 

					
	 	
 	 
	 	By:  	       Cornerstone Core Properties REIT,
 	 
	 	 	a Maryland corporation, 	 
	 	 	its General Partner 	 
	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

[signatures continue on the next page]

-2-

 

	 	 	 	 	 
	 	ASSIGNEE:

COLUMBIA INDUSTRIAL PROPERTIES MIDWEST, LLC,

a Delaware limited liability company

 	 
	 	By:  	Columbia Industrial Properties, LLC,
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its sole member 	 
	 

					
	 	
 	 
	 	By:  	      Lincoln Industrial Manager, LLC.
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its manager 	 
	 

					
	 	
 	 
	 	By:  	             Lincoln Advisory Group, Ltd.,
 	 
	 	 	a Texas __________, 	 
	 	 	its Manager 	 
	 

					
	 	
 	 
	 	By:  	                     Lincoln GP Advisory Group,
 	 
	 	 	Inc., a Texas corporation, 	 
	 	 	its sole general partner 	 
	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Gary F. Kobus, 	 
	 	 	President 	 

-3-

 

	 	 	 	 	 

Exhibit 1 to Bill of Sale

-4-

 

EXHIBIT “E”

Notices to Tenants

[See attached copy.]

-5-

 

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 from Seller 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:

_____________________________

_____________________________

_____________________________

_____________________________

-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.]

-1-

 

FORM OF TENANT ESTOPPEL CERTIFICATE

Columbia Industrial Properties Midwest, LLC

c/o Lincoln Advisory Group, Inc.

120 N. LaSalle Street

Suite 1750

Chicago, IL 60602

     Re: _________________________, __________ (the “Property”)

Gentlemen:

     The purpose of this Tenant Estoppel Certificate is to provide information to COLUMBIA
INDUSTRIAL PROPERTIES MIDWEST, LLC, a Delaware limited liability company, and/or its assignee (the
“Buyer”) regarding certain premises leased by us located at the Property. We, the undersigned
tenant of the Property (the “Tenant”), do hereby certify to Buyer that:

     1. (a) Name of Landlord:

          (b) Name of Tenant:

          (c) Date of Lease:

          (d) Date of Amendments or Modifications:

          (e) Current Term Expiration Date:

          (f) Net Leasable Area:

          (g) Unexercised Renewal Options (if any):

          (h) Current use of the leased premises:

          (i) Current Monthly Rent:

          (j) Current Additional Rent Payment (CAM, Insurance and Taxes):

          (k) Current or future rent concessions (if any):

          (l) Security Deposit:

          (m) Interest Earned on Security Deposit (if any):(n) Guarantors (if any):

          (o) Unexercised Expansion Option (if any):

          (p) Termination Options (if any):

          (q) Unused tenant improvement allowance (if any):

          (r) Parking rights (if any):

          (s) Base Year for Taxes (if any):

          (t) Base Year Amount for Taxes (if any):

          (u) Base Year for Operating Expenses and Insurance (if any):

          (v) Base Year Amount for Operating Expenses and Insurance (if any):

     2. The lease (as amended, the “Lease”) as described in Paragraph 1 above, is in full force and
effect and has not been amended, superseded or modified either orally or in writing

-1-

 

except as specified in paragraph 1(d) above; a copy of the Lease is attached as Schedule A
to this Certificate. There are no other agreements relating to the Lease or the leased premises
between Landlord and Tenant. Tenant has no first rights of offer or refusal, options to purchase,
or right to participate in any income, profits, or sales or refinancing proceeds derived from the
Property or the leased premises.

     3. The Tenant is a tenant in full and complete possession of the leased premises under the
terms of the Lease. Tenant has not assigned the Lease or sublet all or any part of the leased premises except as follows: _____________________________________________________

__________________________________________________________________________________.

     4. All rent, charges, or other payments due to the Landlord under the Lease have been paid
through and including ____________________________, and there have been no prepayments of rent or
other obligations more than one month in advance. Any operating expense escalation, tax escalation
and other additional rent and percentage rent due under the Lease, to the Landlord, has been paid
for the period covering _________________________ through ____________________.

     5. All construction, improvements, other installations and parking facilities, to the extent
required of Landlord under the Lease, have been completed and paid for pursuant to the terms of the
Lease and to the satisfaction of Tenant except as follows: ______________________

_________________________________________________________________________________.

     6. To the best of Tenant’s knowledge, neither Landlord nor Tenant is in default in any
material respect under any of the terms, covenants and conditions of the Lease, nor has any event
occurred that, with the passage of time or the giving of notice or both, would constitute a default
in any material respect by either party under the Lease. No notice to terminate has been given to
or by Tenant.

     7. Tenant has no claims, counterclaims, defenses or setoffs against Landlord arising under the
Lease; nor is Tenant entitled to any concession, rebate, tenant improvement or other allowance or
free rent for any period after the date of this Certificate except as follows: ____

_________________________________________________________________________________.

     8. Tenant has no notice or knowledge of any sale, transfer, pledge or assignment of the Lease
or of the rentals by Landlord, except as follows: ________________________________________________________________________________________.

     9. Tenant has not advanced any amounts to or on behalf of Landlord under the Lease that have
not been reimbursed to Tenant in full other than the Security Deposit (and interest thereon, if
any) and estimates for Additional Rent.

     10. There are no actions or proceedings involving Tenant under the Bankruptcy or insolvency
laws of the United States or any State.

-2-

 

     11. All notices to be given to Tenant under, or in connection with, the Lease shall be in
writing and shall be delivered by registered or certified mail, return receipt requested, postage
prepaid, to the following addresses:

__________________

__________________

__________________

     12. This certification shall be binding upon and inure to the benefit of the parties hereto,
their heirs, personal representatives, successors and assigns.

     13. Tenant does not use or store hazardous materials on or about the leased premises or
Property, except as follows: _____________.

     14. The assignment by Landlord of its interest under the Lease to Buyer shall not constitute
an event of default under the Lease, and after receiving notification that such assignment has been
consummated, Tenant shall deliver all subsequent payments required under the Lease to Buyer or as
directed by Buyer.

Tenant acknowledges that Buyer is relying upon the statements in this Tenant Estoppel Certificate
and does hereby warrant and affirm to and for the benefit of Buyer, and its successors and assigns
that each of the foregoing statements is true, correct and complete as of the date hereof.

     IN WITNESS WHEREOF, Tenant has caused this Tenant Estoppel Certificate to be executed by its
duly authorized officer (set forth below) this __ day of _________________, 2003.

	 	 	 	 	 
	 	_________________________ [TENANT]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-3-

 

	 	 	 	 	 

Schedule 1

Form of Deed

[See attached copy.]

-4-

 

Schedule 2

List of Property Documents

[See attached copy.]

-1-

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