Document:

exv10w2

Exhibit 10.2

LOAN ORIGINATION AGREEMENT

     THIS
LOAN ORIGINATION AGREEMENT (this “Agreement”) is
entered into as of the
21st day
of October, 2010 (the “Effective Date”), by and between CM REIT, Inc., a
Maryland corporation (“CMR”), CM Capital Services, LLC, a Nevada limited liability company
(“CMCS”) and for the purposes of Paragraphs I and J of Article I hereof, CM Group, LLC, a
Delaware limited liability company (“Parent”).

RECITALS:

     WHEREAS, CMCS is regularly and actively engaged in the business of arranging for the financing
of and servicing mortgage loans for the acquisition of, development of, and construction on real
estate (collectively, “Mortgage Loans”);

     WHEREAS, CMR is a real estate investment trust that originates and invests in, among other
things, Mortgage Loans; and

     WHEREAS, CMCS and CMR desire to enter into this Agreement to set forth certain rights and
obligations between the parties regarding the origination and servicing of Mortgage Loans by CMCS
and the funding of Mortgage Loans by CMR.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual premises hereinafter
expressed, the parties hereto do mutually agree as follows:

ARTICLE I. FUNDING PROCESS.

     A. CMCS shall continue to originate Mortgage Loans in accordance with its historical
practices. CMCS shall send a weekly report (a “Mortgage Loan Report”) to CMR presenting in
reasonable detail Mortgage Loans identified by CMCS and that CMCS believes satisfy the investment
criteria of CMR and are appropriate for investment by CMR (each, a “Potential Qualifying
Loan”). CMR shall then have a period of two (2) business days from the date of such notice (an
“Initial Election Period”) to elect to fund all or a portion of those Potential Qualifying
Loans by delivering written notice to CMCS (each, a “Preliminary Funding Notice”). Each
Preliminary Funding Notice shall constitute an offer by CMR to fund all or the specified portion of
each Potential Qualifying Loan listed in such Preliminary Funding Notice upon the terms and
conditions set forth in the Mortgage Loan Report as modified by any requested changes set forth in
such Preliminary Funding Notice, with such changes thereto as CMR shall deem appropriate for its
funding thereof. If CMR fails to deliver a Preliminary Funding Notice to CMCS prior to the
expiration of the Initial Election Period, or if the Preliminary Funding Notices delivered by CMR
does not include all of the Potential Qualifying Loans listed on the Mortgage Loan Report, then
CMCS may arrange for the funding of all or any such portion, as the case may be, of the remaining
Potential Qualifying Loans set forth in the applicable Mortgage Loan Report that were not selected
by CMR through one or more other investment programs sponsored by Parent (each, a “Competitive
Program”) or third parties.

 

 

     B. No later than two (2) business days after its receipt of a Preliminary Funding Notice (an
“Election Period”), CMCS may elect to accept any changes set forth in the applicable
Preliminary Funding Notice that CMR requests be made to the terms of any Potential Qualifying
Loan listed in such Preliminary Funding Notice. If CMCS rejects any of the modified terms
requested by CMR, it may withdraw from the Preliminary Funding Notices each Potential Qualifying
Loan with respect to which modified terms were requested and shall permit CMR to fund all or the
specified portion of any remaining Potential Qualifying Loans listed on the Preliminary Funding
Notices. If CMCS agrees to all modified terms requested by CMR in a Preliminary Funding Notice,
then CMCS shall permit CMR to fund all or the specified portion of the Potential Qualifying Loan
listed in the Preliminary Funding Notice upon the modified terms requested by CMR.

     C. CMCS may freely arrange for the funding of any Potential Qualifying Loan that was set forth
in a Mortgage Loan Report or portion thereof that CMR did not elect to fund or as to which any
modified terms set forth in the Preliminary Funding Notice were not accepted by CMCS.

     D. For any and all Mortgage Loans that CMR should choose to fund, as soon as available
following the delivery of a Preliminary Funding Notice, CMCS shall deliver to CMR the due diligence
materials, reports and documents described in Attachment “B” hereto (the “Specified
Materials”) relating to the Mortgage Loan to be funded, participated in or purchased by CMR
then in the possession of CMCS. Upon receipt of all Specified Materials, CMR shall have three (3)
business days to review and approve or object in writing to the Specified Materials received. In
addition, CMCS shall provide CMR with any additional documents and other information that CMR may
reasonably request with respect to any Mortgage Loan to be funded by CMR hereunder. It shall be a
condition to the obligation of CMR to fund any Mortgage Loan at a Closing (hereinafter defined)
that CMCS shall have timely provided to CMR all of the Specified Materials (and any other documents
and other information reasonably requested by CMR). In the event that with respect to any Mortgage
Loan, (i) CMR does not approve the Specified Materials initially delivered to CMR, or (ii) the
Specified Materials received by CMR thereafter do not support or conform to the representations and
description of the Mortgage Loan provided by CMCS to CMR in the Mortgage Loan Report, including,
without limitation, the borrower, loan amount, collateral type, ownership, appraised value, lien
priority and environmental condition, CMR shall have no obligation to fund such Mortgage Loan at a
Closing.

     E. Each closing of a funding of a Mortgage Loan by CMR hereunder (each, a “Closing”)
shall take place at the principal offices of CMR, at the address specified in Article XII hereof,
on the business day specified as the closing date for the applicable Mortgage Loan in the
applicable Mortgage Loan Report. At each Closing, CMCS shall arrange for the execution and
delivery to CMR of a standard set of investment documents, in form and substance reasonably
acceptable to CMR (and shall provide CMR with customary representations and warranties as well as
adequate assurances that such Mortgage Loans are valid and enforceable obligations of the
respective borrowers and that no default, event of default, or similar event has occurred of which
Consolidate Mortgage could reasonably be expected to be aware with respect to such Mortgage Loans).
At each Closing, unless otherwise agreed upon by the parties, CMR shall fund all or the specified
portion of each Mortgage Loan in the applicable amount payable in immediately available funds.

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     F. CMR may, at its election, request periodic accounting and other financial records from CMCS
that demonstrate its compliance with this Agreement. Any proprietary information and associated
products, copyrights, trademarks and logos developed by parties to this Agreement shall remain the
property of the party which developed them.

     G. Each party hereto shall, in a professional manner, take all steps reasonably necessary to
perform its duties hereunder.

     H. In addition to the other matters set forth in this Article I, the parties agree to the
covenants and other matters set forth in Attachment “A” hereto, which are incorporated by reference
as if fully set forth herein.

     I. As promptly as possible but in any event within thirty (30) days (or such later date as the
parties may agree) after (i) any person or entity engaged in the business of originating or
brokering commercial loans becomes an Affiliate (as defined in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act of 1934, as amended) of Parent and/or CMCS, or (ii)
any Affiliate of Parent and/or CMCS becomes engaged in the business of originating or brokering
commercial loans, Parent shall provide CMR with written notice thereof setting forth information in
reasonable detail describing the business of such person or entity and shall, if requested by CMR,
within thirty (30) days after the date of such notice, cause each such person or entity to deliver
to CMR a joinder agreement in form and substance reasonably acceptable to CMR pursuant to which
such person or entity becomes a party to and agrees to be bound by the terms and provisions of this
Agreement.

     J. Subject to the rotation process described in this Paragraph J, each investment opportunity
in a Potential Qualifying Loan will be offered by CMCS to CMR, to the extent that CMR then has
available capital in an amount sufficient to allow CMR to participate in such investment
opportunity. CMCS may also offer certain Mortgage Loans it has identified as satisfying the
investment criteria of a Competitive Program and appropriate for investment by such Competitive
Program to such Competitive Program to the extent that such Competitive Program then has sufficient
funds to allow the Competitive Program to participate in such Mortgage Loans. However, if the
Parent’s investment committee determines that any Potential Qualifying Loan satisfies the
investment criteria of CMR and one or more Competitive Programs and CMR and each such Competitive
Program then has sufficient capital to invest in such Potential Qualifying Loan, then each such
Potential Qualifying Loan, shall be subject to a rotation process that gives CMR and all applicable
Competitive Programs sequential opportunities to be presented and acquire Potential Qualifying
Loans. This rotation process shall continue such that CMR or a Competitive Program shall in turn
be offered each Potential Qualifying Loan investment opportunity. The foregoing rotation process
shall apply regardless of the number of applicable Competitive Programs, such that each has a fair
and equitable opportunity, in an orderly and consistent rotation, to evaluate an applicable
Potential Qualifying Loan. The foregoing notwithstanding, if the party next-in-line declines a
Potential Qualifying Loan, then such Potential Qualifying Loan shall be presented to the
next-in-line after the declining party, provided, that the failure by CMR or any
Competitive Program to accept a Potential Qualifying Loan shall not affect its right to be offered
any future Potential Qualifying Loan in accordance with the rotation process described in this
Paragraph J (it being understood that CMR or a Competitive Program that declines to accept a
Potential Qualifying Loan goes to

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the end of the rotation line behind all other applicable rotating parties). Parent’s
investment committee shall allocate Mortgage Loan investment opportunities among CMR and all other
Competitive Programs first, in accordance with the investment criteria that is best satisfied by
the Mortgage Loan and second, pursuant to the foregoing rotation policy. To the extent that any
investment opportunity does not satisfy CMR’s investment criteria, such investment opportunity
shall not be subject to the rotation process described in this Paragraph J and CMCS may present
such Mortgage Loan investment opportunity to any other Competitive Programs without presenting it
to CMR.

ARTICLE II. CONTINUING OBLIGATIONS OF CMCS.

     CMCS agrees to comply with all applicable regulations and statutes affecting licensing status,
and/or the origination and processing of Mortgage Loans. CMCS further agrees to properly supervise
any agents or employees of CMCS which directly or indirectly handle any phase of origination or
processing of its Mortgage Loans. CMCS shall immediately notify CMR of any claims, administrative
proceedings or actions by a government or private entity, which could affect CMCS’ status as a
licensed entity. CMCS shall notify CMR in writing of any changes in its ownership structure or its
address for notice within thirty (30) business days of such change. Furthermore, CMCS does hereby
represent and warrant that it is solvent and has adequate financial capitalization to properly
engage in the business of originating and processing Mortgage Loans. CMCS shall immediately notify
CMR should CMCS become insolvent, incur claims or obligations which could make it insolvent, or
experience a material change in its financial condition that could impair its ability to perform
under this Agreement.

ARTICLE III. CMCS WARRANTIES.

	 	 	CMCS hereby represents and warrants to CMR:

	 	(a)	 	No Untrue Statements: None of the statements or information contained
in any Mortgage Loan package, to the best of CMCS’ knowledge after a reasonable
investigation with due diligence, will contain any untrue or erroneous statement, and
CMCS shall not omit any facts material to any Mortgage Loan package.
	 
	 	(b)	 	Duly Licensed and Authorized: CMCS is duly licensed under the laws of
the state of operation and possesses all necessary licenses, permits and authority to
engage in the activities contemplated by this Agreement. CMR may require CMCS to
provide copies of such licenses or permits upon renewal. If CMCS originates any loans
outside the state where it is physically located, CMCS warrants that it has obtained
the required state agency approvals, territorial authority, and/or license to originate
such loans, and will provide such upon request.
	 
	 	(c)	 	Regulatory Compliance: CMCS will comply with all applicable federal,
state and local laws and regulations with respect to its business activities and all
loans, including all anti-predatory lending laws. Specifically, in connection
therewith,
CMCS has given all applicable required local, state, federal and/or agency
disclosures to borrowers with respect to any loan.

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	 	(d)	 	No Other Fees: Except as otherwise disclosed to CMR in writing, prior
to the funding of any transaction by CMR, CMCS shall not receive any direct or indirect
payment or consideration from any third-party with respect to the transaction,
including, but in no way limited to, payments involving escrow, appraisal or sale.
	 
	 	(e)	 	No Pending Suits: Unless otherwise disclosed to CMR in writing, there
is not pending or threatened any suit, action, arbitration or legal, administrative or
other proceeding or governmental investigation (including any allegation of fraud)
against CMCS or its current or former owners, agents, or employees that could have a
material adverse effect on CMCS’ business, assets, financial condition, or reputation.
	 
	 	(f)	 	Borrower Processing: No borrower shall have had in his or her direct
or indirect possession or control any credit, income or deposit verification document
submitted to CMR with respect to any loan.
	 
	 	(g)	 	Corporate Good Standing: CMCS is a duly organized and validly existing
entity that is in good standing under the applicable laws and regulations of its state
of organization, all jurisdictions in which it conducts business and the United States
of America. CMCS has the requisite power, authority and capacity, corporate or
otherwise, to execute and deliver this Agreement and perform its obligations hereunder.
At any time, with reasonable notice, CMR may require CMCS to provide copies of CMCS’
corporate or other organization documents.
	 
	 	(h)	 	No Violations of Law: CMCS’ execution and delivery of this Agreement,
and performance hereunder, does not and will not violate any law, rule or regulation
(federal, state or local); any order, writ, judgment, injunction, decree, determination
or award; or any other agreement or instrument to which Seller is a party or by which
it may be bound or affected. This warranty applies whether any of the above are
presently effective or known by CMCS to become effective.
	 
	 	(i)	 	Fair Lending Statement: CMCS acknowledges that it does not
discriminate against applicants on the basis of age, race, color, gender, ethnic
background, national origin, religion, marital status, familial status, veteran status,
handicap, sexual orientation, receipt of public assistance, because rights have been
exercised under the Consumer Credit Protection Act, or any other prohibited basis.

ARTICLE IV. PERIOD OF PERFORMANCE.

     This Agreement shall be effective as of the Effective Date and its initial term shall expire
on the one-year anniversary of the Effective Date unless any party gives written notice of
termination to the other party at least 90 days prior to the scheduled date of expiration. If no
notice of termination is given by either party, this Agreement shall be automatically renewed for

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successive one-year periods. Notwithstanding the foregoing, this Agreement shall be earlier
terminated (x) at any time by mutual agreement of the parties, or (y) at any time by CMR or CMCS
upon thirty (30) days’ advance written notice after an event constituting “cause” has occurred with
respect to the other party. For purposes of this Agreement “cause” means a judgment by a court of
competent jurisdiction that the subject party has committed fraud either against third parties or
against the other party to this Agreement; the bankruptcy, insolvency or dissolution of the subject
party; or the material breach of this Agreement by the subject party (that is not cured by the
subject party within 30 days after receipt of written notice). Time is of the essence in the
performance of the obligations under this Agreement.

ARTICLE V. MANAGEMENT.

     Each party shall designate a partner, officer or other senior person to be responsible for the
overall administration of such party’s responsibilities under this Agreement. Neither party shall
have management authority over the other outside the scope and performance of this Agreement.

ARTICLE VI. CONFIDENTIAL INFORMATION.

     CMCS acknowledges and agrees that in the course of the performance of this Agreement or
additional services pursuant to this Agreement, it may be given access to, or come into possession
of, confidential information of CMR, which information may contain trade secrets, proprietary data
or other confidential material of CMR. CMCS agrees, during the term of this Agreement, to hold in
confidence and, except as provided herein, not publish or disclose to any third parties any of
CMR’s Confidential Information (hereinafter defined) without the prior consent of CMR. CMCS agrees
to use the same degree of care (and in any event not less than reasonable care) to safeguard the
confidentiality of the Confidential Information that it uses to protect its own secret information.
CMCS agrees to limit any disclosure of the Confidential Information only to those of its affiliates
and its and its affiliates’ employees, directors, officers and outside professional advisors who
have a need to know and to advise such persons of Capital Service’s obligations under this
Agreement. Notwithstanding anything in this Agreement to the contrary, each party hereto agrees
that any party to this Agreement (and any person or entity to which Confidential Information is
disclosed by a party as permitted hereby) may disclose to (without limitation) its: (i) regulators;
(ii) auditors; and (iii) persons or entities who need to know the tax treatment and tax structure
of the transactions contemplated by this Agreement, and all materials of any kind (including
opinions or other tax analyses) related to such tax treatment and tax structure.

     The term “Confidential Information” shall include all financial, marketing and other
information concerning the Mortgage Loans and CMR which CMR discloses to CMCS in connection with
this Agreement or otherwise. Confidential Information shall not include, and the parties agree
that this Agreement is not intended to restrict use or disclosure of, any portion of such
information which:

     is now or later made known to the public through no default by CMCS of its obligations
under this Agreement;

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     is received by CMCS from a third party provided CMCS has no actual knowledge such third
party is breaching an obligation of confidentiality to CMR in providing such information to
CMCS;

     is independently developed by CMCS by persons who did not have access to Confidential
Information of CMR;

     is disclosed by CMCS after receipt of written permission from CMR; or

     is required to be disclosed by law, order or regulation of a governmental agency or
court of competent jurisdiction.

ARTICLE VII. NO PARTNERSHIP.

     Nothing herein contained shall be construed to imply a joint venture, partnership or
principal-agent relationship between CMR and CMCS, and neither party shall have the right, power or
authority to obligate or bind the other in any manner whatsoever, except as otherwise agreed to in
writing. The parties do not contemplate a sharing of profits relating to the business of CMR or
CMCS so as to create a separate taxable entity under Section 761 of the Internal Revenue Code of
1986, as amended, nor co-ownership of a business or property so as to create a separate partnership
under the law of any jurisdiction, including, without limitation, the state of Nevada or Maryland.
Revenues and expenses relating to the Mortgage Loans hereunder and any activities relating thereto
shall be reported separately by the parties for tax purposes. This provision does not eliminate
the possibility that the parties may enter into various revenue or equity sharing agreements with
regard to any Mortgage Loans that the parties may consider on a case by case basis. During the
performance of any of the contemplated business activities set forth herein, CMR’s employees, if
any, will not be considered employees of CMCS, and vice versa, within the meaning or the
applications of any federal, state or local laws or regulations including, but not limited to, laws
or regulations covering unemployment insurance, retirement or medical benefits, worker’s
compensation, industrial accident, labor or taxes of any kind.

ARTICLE VIII. TRADEMARK, TRADE NAME AND COPYRIGHTS.

     This Agreement does not give any party any ownership rights or interest in another party’s
trade name, trademarks or copyrights.

ARTICLE IX. ADDITIONAL CMCS WARRANTIES.

     CMCS represents and warrants that all Mortgage Loans submitted to CMR shall meet the following
conditions, in addition to any other requirements set out in this Agreement:

	 	(a)	 	Appraisers:

	 	a.	 	CMCS warrants that the appraiser’s compensation was not
affected by the approval or disapproval of the loan, or contingent upon
returning a minimum appraised value.

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	 	b.	 	CMCS reserves the right to refuse appraisals from any appraiser
or appraisal firm whose work has been deemed unacceptable in CMR’s sole
discretionary judgment.

	 	(b)	 	CMCS shall execute all documentation required to close and fund loans to be
purchased by CMR, including, if applicable, the assignment of the loans transferring
and assigning to CMR all right, title and interest in and to said loans, free and clear
of any and all claims, charges, defenses, offsets, demands, or encumbrances of any kind
whatsoever.
	 
	 	(c)	 	The Note and Security Instrument executed in connection with a Mortgage Loan
shall not be modified without CMR’s prior written permission. All documents affecting
said Mortgage Loan shall be genuine and each shall be legal, valid and binding upon
borrowers.
	 
	 	(d)	 	CMR may fund a Mortgage Loan and may temporarily withhold CMCS’ compensation
until all funding conditions have been met.
	 
	 	(e)	 	A Mortgage Loan shall not be subject to any right of rescission, offset,
counterclaim or defense, including the defense of usury.

ARTICLE X. INDEMNIFICATION.

     Each of CMR and CMCS, at its own expense, shall indemnify, defend and hold the other, its
partners, members, shareholders, directors, officers, employees and agents harmless from and
against any and all third-party suits, actions, investigations and proceedings, and related costs
and expenses (including, reasonable attorney’s fees), resulting solely and directly from the
indemnifying party’s gross negligence, willful misconduct or material breach of this Agreement.
Neither CMR nor CMCS shall be required hereunder to defend, indemnify or hold harmless the other or
its partners, shareholders, directors, officers, employees and agents, or any of them, from any
liability resulting from the gross negligence, willful misconduct or material breach of this
Agreement by the party seeking indemnification or by any third party. Each of CMR and CMCS agrees
to give the other prompt written notice of any claim or other matter as to which it believes this
indemnification provision is applicable.

ARTICLE XI. INTELLECTUAL PROPERTY.

     Work performed pursuant to this Agreement by either CMR or CMCS and information, materials,
products and deliverables developed in connection with business endeavors pursuant to this
Agreement shall be the property of the respective parties performing the work or creating the
information. All underlying methodology utilized by CMCS and CMR, which was created or developed
prior to the date of this Agreement and utilized in the course of performing their duties pursuant
to this Agreement, shall not become the property of the other.

Page 8 of 13

 

ARTICLE XII. GENERAL PROVISIONS.

     A. Entire Agreement. This Agreement, together with the Attachments hereto and all
documents executed in connection herewith or incorporated by reference herein, constitutes the
entire and sole agreement between the parties hereto with respect to the subject matter hereof and
supersedes any prior agreements, negotiations, understandings or other matters, whether oral or
written, with respect to the subject matter hereof. This Agreement cannot be modified, changed or
amended, except in writing signed by a duly authorized representative of each of the parties
hereto.

     B. Conflict. In the event of any conflict, ambiguity or inconsistency between this
Agreement and any other document which may be annexed hereto, the terms of this Agreement shall
govern. Any conflicts or disputes that are not amicably settled in the due course of this business
relationship shall be settled through binding arbitration, in accordance with the latest edition of
rules as set forth by the American Arbitration Association, such arbitration to be held in Las
Vegas, Nevada. Said rulings in arbitration shall be considered final and binding on the parties
hereto and shall be enforceable in any competent United States court.

     C. Assignment and Delegation. No party shall voluntarily assign or delegate this
Agreement or any rights, duties or obligations hereunder to any other person or entity without
prior express written approval of the other party, provided that, notwithstanding the foregoing, a
party may assign this Agreement by operation of law to any successor to such party by merger or
consolidation (without the prior consent of the other parties).

     D. Notices. Any notice required or permitted to be given under this Agreement shall
be in writing, by hand delivery, commercial overnight courier or registered or certified U.S. Mail,
to the address stated below across from such party’s name, and shall be deemed duly given upon
receipt, or if by registered or certified mail three business days following deposit in the U.S.
Mail. The parties hereto may from time to time designate in writing other addresses expressly for
the purpose of receipt of notice hereunder.

	 	 	 

	If to CMR:

	 	CM REIT, Inc.
	 

	 	1291 Galleria Drive, Suite 200
	 

	 	Henderson, Nevada 89014
	 

	 	Attention: Stacy M. Riffe
	 

	 	Telephone: (702) 736-5490
	 
	 	 
	If to CMCS:

	 	CM Capital Services, LLC
	 

	 	1291 Galleria Drive, Suite 220
	 

	 	Henderson, Nevada 89014
	 

	 	Attention: Todd B. Parriott
	 

	 	Telephone: (702) 795-7930

     E. Severability. If any provision of this Agreement is declared invalid or
unenforceable, such provision shall be deemed modified to the extent necessary and possible to
render it valid and enforceable. In any event, the unenforceability or invalidity of any provision
shall not affect any other provision of this Agreement, and this Agreement shall continue in full
force and effect, and be construed and enforced, as if such provision had not been included,
or had been modified as above provided, as the case may be.

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     F. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada without giving effect to its choice of law principles.

     G. Headings. The article and paragraph headings set forth in this Agreement are for
the convenience of the parties, and in no way define, limit, or describe the scope or intent of
this Agreement and are to be given no legal effect.

     H. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.

     I. Attachments. The Attachments attached hereto are made a part of this Agreement as
if fully set forth herein.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK —

SIGNATURE PAGE IMMEDIATELY FOLLOWS]

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     IN WITNESS WHEREOF, the parties, by their duly authorized representatives, have caused this
Agreement to be executed as of the date first written above.

	 	 	 	 	 
	 	CM REIT, INC.

 	 
	 	By:  	/s/ Stacy M. Riffe 	 
	 	 	Stacy M. Riffe 	 
	 	 	Chief Financial Officer 	 
	 
	 	CM CAPITAL SERVICES, LLC

 	 
	 	By:  	/s/ Todd B. Parriott 	 
	 	 	Todd B. Parriott 	 
	 	 	President 	 
	 
	 	CM GROUP, LLC

 	 
	 	By:  	/s/ Todd B. Parriott 	 
	 	 	Todd B. Parriott 	 
	 	 	Chief Executive Officer 	 
	 

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ATTACHMENT “A”

Additional Provisions

In accordance with the provisions set forth in the foregoing Loan Origination Agreement of which
this Attachment forms an integral part, it is agreed and understood between the parties as follows:

	 	1)	 	CMCS is entitled to retain origination fees with respect to any Mortgage Loans
funded by CMR hereunder.
	 
	 	2)	 	CMR is acquiring loans on a servicing-released basis, and CMCS shall have no
right under this Agreement to service any Mortgage Loans funded by CMR hereunder.
Notwithstanding the foregoing, CMR and CMCS may enter into a separate servicing
agreement pursuant to which CMCS may service some or all of the Mortgage Loans funded
by CMR hereunder.

 

 

ATTACHMENT “B”

Specified Materials

	1.	 	All customary due diligence reports, documents, and analyses including, without limitation,
all appraisals, title commitments and related exception documents, surveys, engineering
reports, environmental reports, UCC, tax and judgment lien searches, organizational documents,
construction contracts, architect’s plans and specifications, rent rolls, leases, management
agreements and other material agreements, reports and analyses.
	 
	2.	 	All other materials, documents and information reasonably requested by CMR.
	 
	3.	 	Contents of a Complete Credit File, including, without limitation:

	 	a.	 	Loan Application
	 
	 	b.	 	Current Credit Reports on all Principals (60-days)
	 
	 	c.	 	Fully Executed Purchase Agreement and any and all addenda, as
applicable
	 
	 	d.	 	Appraisal and Valuation documents
	 
	 	e.	 	Title Documents and Reports
	 
	 	f.	 	Underwriting Approval
	 
	 	g.	 	Asset Documentation (60-days)
	 
	 	h.	 	All Disclosures
	 
	 	i.	 	Financial Information and Income Documentationexv10w5

Exhibit 10.5

ESCROW AGREEMENT 

     THIS ESCROW AGREEMENT (this “Agreement”) made and entered into as of this
27th day of October, 2010 by and among CM Securities, LLC a Nevada limited
liability company (the “Dealer Manager”), CM REIT, Inc., a Maryland Corporation (the
“Company”) and  UMB Bank, N.A., as escrow agent, a national banking association organized and
existing under the laws of the United States of America (the “Escrow Agent”). This Agreement shall be
effective as of the effective date of the Company’s registration statement filed with the
Securities and Exchange Commission containing the Prospectus (hereinafter defined) (the
“Effective Date”).

RECITALS

     WHEREAS, the Company proposes to offer and sell, on a best efforts basis through the Dealer
Manager and selected broker-dealers (the “Participating
Dealers”) up to 90,000,000 shares of
common stock (excluding the shares of its common stock to be offered and sold pursuant to the
Company’s distribution reinvestment plan) of the Company (the “Shares”) to investors (the
“Offering”) pursuant to a prospectus as amended from time to time and filed with the
Securities and Exchange Commission as a part of the Company’s registration statement on Form S-11
(File No. 333-156434) (the “Prospectus”), at an initial purchase price of $10.00 per share.

     WHEREAS, the Company has agreed that the subscription price paid by subscribers for shares
will be refunded to such subscribers if payment from persons who are not affiliated with the
Company for an aggregate of at least $2,500,000 in Shares (such amount, the “Minimum
Offering”) has not been raised on or before the date that is
one year from the Effective Date (the “Outside Date”).

     WHEREAS, the Company desires to establish an escrow account (the “Escrow Account”) as
further described herein in which funds received from subscribers will, except as otherwise
specified herein, be deposited, and the Escrow Agent is willing to serve as escrow agent for such
Escrow Account upon the terms and conditions herein set forth.

     WHEREAS, deposits received from residents of the State of Pennsylvania (the “Pennsylvania
Subscribers”) and deposits received from residents of the
State of Tennessee (the “Tennessee Subscribers”) will
remain in the Escrow Account until the conditions of Sections 3
and 4, respectively,  hereof have
been met.

     WHEREAS, the Escrow Agent
has engaged DST Systems, Inc., a Massachusetts corporation (the
“Processing Agent”) to
receive, examine for “good order” and facilitate subscriptions into the Escrow Account as further
described herein and to act as record keeper, solely in the capacity of agent for the Escrow Agent
and not in any capacity on behalf of the Company or the Dealer Manager, nor shall it have any
interest other than that provided in this Agreement in assets in the Processing Agent’s possession
as the agent of the Escrow Agent.

 

 

     WHEREAS, in order to subscribe for Shares during the Escrow Period (as defined below), a
subscriber must deliver an executed subscription agreement in substantially the form of Appendix C
to the Prospectus together with the full amount of its subscription: (i) by check, draft or money
order made payable to the order of UMB Bank, N.A., as Escrow Agent for CM REIT, Inc., in U.S.
dollars or (ii) by draft, wire transfer of immediately available funds or Automated ClearingHouse
(ACH) in U.S. dollars transmitted directly to the Escrow Account in accordance with the
instructions provided in Section 12(2) (collectively, the “Payment”).

AGREEMENT

     NOW, THEREFORE, the Dealer Manager, the Company and Escrow Agent agree to the terms of this
Agreement as follows:

1. Establishment of Escrow Account; Escrow Period. On or prior to the commencement of the
Offering, the Company shall establish the Escrow Account with the Escrow Agent, which shall be
entitled “Escrow Account for the Benefit of Subscribers to Shares of CM REIT, Inc.” This Agreement
shall be effective on the Effective Date and the Company shall notify
the Processing Agent and the
Escrow Agent of the Effective Date. All monies deposited in the Escrow Account are hereinafter
referred to as “Escrowed Funds.” During the Escrow Period, the Company will cause the
Dealer Manager and the Participating Dealers to instruct subscribers to make checks for
subscriptions payable to the order of “UMB Bank, N.A., as Escrow Agent for CM REIT, Inc.” Except
as otherwise set forth herein for the Pennsylvania Subscribers and
the Tennessee Subscribers, the “Escrow Period” shall
commence upon the effectiveness of this Agreement and shall continue until the earlier of (i) the
date upon which the Escrow Agent receives confirmation from the Company and the Dealer Manager that
the Company has raised the Minimum Offering, (ii) the Outside Date, or (iii) the termination of the
Offering by the Company prior to the receipt of the Minimum Offering. Any payments received prior
to the time, if any, that the Escrowed Funds are deliverable to the Company pursuant to the
provisions of Section 2(b) below that are made payable to a party other than the Escrow Agent shall
be returned to the Participating Dealer who submitted the Payment. After the Escrow Period, except as
otherwise required for Pennsylvania Subscribers and
the Tennessee Subscribers, the Escrow Agent shall promptly return to the
Processing Agent for deposit into an account designated by the Company any Payments received by the
Escrow Agent or deposited into the Escrow Agent’s account,
pursuant to Section 2(b) below.

- 2 -

 

2. Operation of the Escrow.

(a) Deposits into the Escrow Account. During the Escrow Period, completed subscription agreements and Payments for the purchase
price for the Shares shall be remitted by the broker dealers or registered investment advisors, as
applicable, on behalf of persons subscribing to purchase shares directly to the Escrow Agent as
provided in Section 12 by noon of the next Business Day following receipt of any such subscription
agreements and Payments or, if final internal supervisory review is conducted at a different
location, by noon of the next Business Day following receipt of any such subscription agreements
and Payments by the office conducting the final internal supervisory review. The Escrow Agent
hereby agrees to maintain the funds contributed by the Pennsylvania Subscribers and the Tennessee
Subscribers in a manner in which they may be separately accounted for by the records of the
Processing Agent so that the requirements of Sections 3 and 4 of this Agreement can be met.
Deposits shall be held in the Escrow Account until such funds are disbursed in accordance with this
Section 2. Prior to disbursement of the funds deposited in the Escrow Account, upon receipt of the
subscription agreements and Payments, Escrow Agent shall fax or scan a listing of the subscriber
name and purchase price to the Company and the Processing Agent, together with all other
subscription documents sent with the Payments. Prior to disbursement of the funds deposited in the
Escrow Account, such funds shall not be subject to claims by creditors of the Company or any of its
affiliates. If any of the Payments are returned to the Escrow Agent for nonpayment prior to receipt
of the Break Escrow Affidavit (as described below), the Escrow Agent shall promptly notify the
Processing Agent and the Company in writing via mail, email or facsimile of such nonpayment, and
the Escrow Agent is authorized to debit the Escrow Account, as applicable in the amount of such
returned Payment and the Processing Agent shall delete the appropriate account from the records
maintained by the Processing Agent. Within seven (7) days from the date of receipt of each
subscription, the Company will determine whether or not the subscription is to be accepted or
rejected in whole or in part. Within ten (10) Business Days of receipt by the Escrow Agent of
written notice from the Company, or as soon thereafter as practicable, that a subscription has been
rejected, the Escrow Agent shall transfer by check the funds, without
interest and without deduction, if any, earned
thereon, of any subscribers whose subscription has been rejected since the commencement of the
Offering. The Processing Agent will maintain a written account of each sale, which account shall
set forth, among other things, the following information: (i) the subscriber’s name and address;
(ii) the subscriber’s social security number; (iii) the number of Shares purchased by such
subscriber; and (iv) the amount paid by such subscriber for such Shares. During the Escrow Period
neither the Company nor the Dealer Manager will be entitled to any principal funds received into
the Escrow Account. As used in this Agreement, the term “Business Day” means any day
except Saturday, Sunday or a day on which commercial banks in New York, New York or Kansas
City, Missouri are not closed in respect of a federal or state holiday.

- 3 -

 

(b) Distribution of the Escrowed Funds to the Company. If at any time on or prior to
the Outside Date, the Minimum Offering has been raised, then upon the happening of such event,
the Escrowed Funds shall remain in the Escrow Account until the Escrow Agent receives written
direction provided by the Company instructing the Escrow Agent to deliver the amount of such
Escrowed Funds as the Company shall direct (other than any funds, together with any interest
thereon, received from Pennsylvania Subscribers and
 Tennessee Subscribers which cannot be released until the conditions
of Sections 3 and 4, respectively, have been met). An affidavit or certification from an officer of the Company to
the Escrow Agent and Processing Agent stating that at least the Minimum Offering has been timely
raised, shall constitute sufficient evidence for the purpose of this Agreement that such event
has occurred (the “Break Escrow Affidavit”). The Affidavit shall indicate (i) the date
on which the Minimum Offering was raised and (ii) the actual total number of Shares sold as of
such date.

(c)
Return of the Escrowed Funds to the Subscribers. If the Escrow Agent has
not received a Break Escrow Affidavit on or prior to the Outside
Date, the Escrow Agent
shall obtain from the Processing Agent the information needed to return the principal amount of the
funds in the Escrow Account, together with any interest thereon, to each respective
subscriber, and the Escrow Agent shall promptly create and dispatch checks and wires drawn on
the Escrow Account to return

- 4 -

 

the principal amount of the funds in the Escrow Account, together with any interest thereon,
without deduction, penalty or expense, to the respective subscribers, and the Escrow Agent
shall notify the Company and the Dealer Manager of its distribution of the Escrowed Funds.
The subscription payments returned to each subscriber (including those, if any, returned to
Pennsylvania Subscribers and
 Tennessee Subscribers pursuant to Sections 3 and 4, respectively) shall be free and clear of any and all claims
of the Company or any of its creditors.

3. Distribution of the Funds from Pennsylvania Subscribers.

(a) Notwithstanding anything to the contrary herein, disbursements of funds paid by
Pennsylvania Subscribers may only be distributed in compliance with the provisions of this
Section 3. Irrespective of any disbursement of funds from the Escrow Account pursuant to
Section 2 hereof, the Escrow Agent will continue to place deposits from the Pennsylvania
Subscribers into the Escrow Account, until such time as the Company notifies the Escrow Agent
in writing that total subscriptions (including amounts in the Escrow Account previously
disbursed as directed by the Company and the amounts then held in the Escrow Account) equal or
exceed $50,000,000, whereupon the Escrow Agent shall disburse to the Company, at the Company’s
request the principal amount of the funds from the Pennsylvania Subscribers received by the
Escrow Agent for accepted subscriptions, together with any and all interest earned thereon.

(b) If
the Company has not received total subscriptions of at least
$50,000,000 within one hundred twenty (120)
days of the date the Company first receives a subscription from a Pennsylvania Subscriber (the
“Initial Escrow Period”), the Company shall notify each Pennsylvania Subscriber by
certified mail or any other means (whereby receipt of delivery is obtained) of the right of
Pennsylvania Subscribers to have their investment returned to them. If, pursuant to such
notice, a Pennsylvania Subscriber requests the return of his or her subscription funds within
ten (10) days after receipt of the notification (the “Request Period”), the Escrow Agent shall
promptly refund within fifteen (15) calendar days after receipt of such Pennsylvania
Subscriber’s request, with a pro rata share of any interest earned thereon and without
deduction, directly to each Pennsylvania Subscriber the funds deposited in the Escrow Account
on behalf of the Pennsylvania Subscriber.

(c) The funds of Pennsylvania Subscribers who do not request the return of their funds within
the Request Period shall remain in the Escrow Account for successive 120-day escrow periods
(each a “Successive Escrow Period”), each commencing automatically upon the
termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall
follow the notification and payment procedure set forth in Section 3(b) above with respect to
the

- 5 -

 

Initial Escrow Period for each Successive Escrow Period, until the occurrence of the earliest
of (i) the termination of the offering by the Company prior to
the receipt of $50,000,000 of
total subscriptions, (ii) the receipt and acceptance by the Company of total subscriptions
that equal or exceed $50,000,000 and the disbursement of the Escrow Account on the terms
specified in this Section 3, or (iii) all funds held in the Escrow Account that were paid by
Pennsylvania Subscribers having been returned to the Pennsylvania Subscribers in accordance
with the provisions hereof.

(d) If the Company has not received total subscriptions of at least $50,000,000 within 365 days after
the Outside Date, all funds in the Escrow Account that were contributed by Pennsylvania
Subscribers will be promptly returned in full to such Pennsylvania Subscribers, together with
their pro rata share of any interest earned thereon pursuant to instructions made by the
Company, upon which the Escrow Agent may conclusively rely.

4.
Distribution of the Funds from Tennessee Subscribers.

(a) Notwithstanding anything to the contrary herein,
 disbursements of funds
contributed by Tennessee Subscribers may only be distributed in compliance with the
provisions of this Section 4. Irrespective of any disbursement of funds from the Escrow
Account pursuant to Section 2 hereof, the Escrow Agent will continue to place deposits
from the Tennessee Subscribers into the Escrow Account, until such time as the Company
notifies the Escrow Agent in writing that total subscriptions (including amounts in the
Escrow Account previously disbursed as directed by the Company and the amounts then held in the Escrow Account)
equal or exceed $10,000,000, whereupon the Escrow Agent shall disburse to the Company, at the Company's request, the principal amount of the funds from the Tennessee Subscribers received by the Escrow Agent for accepted subscriptions.  However, the Escrow Agent shall not disburse those funds of a subscriber whose subscription has been rejected or rescinded of which the Escrow Agent has been notified by the Company, or otherwise in accordance with the Company's written request.

(b) If the Company has not received total
subscriptions of at least $10,000,000 within 365 days after the Break Escrow Affidavit is delivered by the Company
pursuant to Section 2(b), the Processing Agent shall provide the Escrow Agent the information needed to return the
 principal amount of the funds in the Escrow Account that were contributed by Tennessee Subscribers, together
with any interest thereon, to the respective Tennessee Subscribers, and the Escrow Agent shall promptly create
and dispatch checks and wires drawn on the Escrow Account to return the principal amount of the funds in the
Escrow Account that were contributed by Tennessee Subscribers, together with any interest thereon, without deduction,
penalty or expense, to the respective Tennessee Subscribers, and the Escrow Agent shall notify the Company and the
 Dealer Manager of its distribution of the funds. 

5. Escrowed Funds. Upon receipt of the funds received from subscribers to the Offering, the
Escrow Agent shall hold the Escrowed Funds in escrow pursuant to the terms of this Agreement. All
Escrowed Funds shall be invested and reinvested in bank accounts or bank money market accounts and
any other investments permitted under Rule 15c2-4 of the Securities Exchange Act of 1934, as
amended, at the direction of the Company. All Escrowed Funds shall at all times be placed in
interest-bearing accounts.

     The Escrow Agent shall be entitled to sell or redeem any such investment as necessary to make
any distributions required under this Agreement and shall not be liable or responsible for any loss
resulting from any such sale or redemption.

     Income, if any, resulting from the investment of the funds received from subscribers to the
Offering shall be distributed according to this Agreement.

     The Escrow Agent shall provide to the Company monthly statements (or more frequently as
reasonably requested by the Company) on the account balance of the Escrow Account and the activity
in the account since the last report.

6. Duties of the Escrow Agent. The Escrow Agent shall have no duties or responsibilities
other than those expressly set forth in this Agreement, and no implied duties or obligations shall
be read into this Agreement against the Escrow Agent. The Escrow Agent is not a party to, or bound
by, any other agreement among the other parties hereto, and the Escrow Agent’s duties shall be
determined solely by reference to this Agreement. The Escrow Agent shall have no duty to enforce
any obligation of any person, other than as provided herein. The Escrow Agent shall be under no
liability to anyone by reason of any failure on the part of any party hereto or any maker, endorser
or other signatory of any document or any other person to perform such person’s obligations under
any such document.

- 6 -

 

7. Liability of the Escrow Agent and the Processing Agent; Indemnification. The Escrow Agent
acts hereunder as a depository only. The Escrow Agent is not responsible or liable in any manner
for the sufficiency, correctness, genuineness or validity of this Escrow Agreement or with respect
to the form of execution of the same. Each of the Escrow Agent and the Processing Agent shall not be
liable for any action taken or omitted by it, or any action suffered by it to be taken or omitted,
in good faith, and in the exercise of its own best judgment, and may rely conclusively and shall be
protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel
(including counsel chosen by the Escrow Agent or the Processing Agent), statement, instrument, report
or other paper or document (not only as to its due execution and the validity and effectiveness of
its provisions, but also as to the truth and acceptability of any information therein contained)
which is believed by the Escrow Agent or the Processing Agent to be genuine and to be signed or
presented by the proper person(s); provided, however, the Processing Agent and Escrow Agent shall be
liable for damages arising out of their negligence, willful default or misconduct under this
Agreement. Each of the Escrow Agent and the Processing Agent shall not be held liable for any error
in judgment made in good faith by an officer or employee of either unless it shall be proved that
the Escrow Agent or the Processing Agent, as appropriate, was grossly negligent or reckless in
ascertaining the pertinent facts or acted intentionally in bad faith. The Escrow Agent shall not be
bound by any notice of demand, or any waiver, modification, termination or rescission of this
Agreement or any of the terms hereof, unless evidenced by a writing delivered to the Escrow Agent
signed by the proper party or parties and, if the duties or rights of the Escrow Agent are
affected, unless it shall give its prior written consent thereto.

     Either of the Escrow Agent and the Processing Agent may consult legal counsel and shall exercise
reasonable care in the selection of such counsel, in the event of any dispute or question as to the
construction of any provisions hereof or its duties hereunder, and it shall incur no liability and
shall be fully protected in acting in accordance with the reasonable opinion or instructions of
such counsel.

     Each of the Escrow Agent and the Processing Agent shall not be responsible, may conclusively
rely upon and shall be protected, indemnified and held harmless by the Company, for the sufficiency
or accuracy of the form of, or the execution, validity, value or genuineness of any document or
property received, held or delivered by it hereunder, or of the signature or endorsement thereon,
or for any description therein; nor shall the Escrow Agent or the Processing Agent be responsible or
liable in any respect on account of the identity, authority or rights of the persons executing or
delivering or purporting to execute or deliver any document, property or this Agreement.

     In the event that either the Escrow Agent or the Processing Agent shall become involved in any
arbitration or litigation relating to the funds received from subscribers to the Offering, each is
authorized to comply with any decision reached through such arbitration or litigation.

     The Company, hereby agrees to indemnify both the Escrow Agent and the Processing Agent for, and to
hold it harmless against any loss, liability or expense incurred in connection herewith without
gross negligence, recklessness or willful misconduct on the part of either of the Escrow Agent or
the Processing Agent, including without limitation legal or other fees arising out of or in
connection with its entering into this Agreement and carrying out its duties hereunder, including
without limitation the costs and

- 7 -

 

expenses of defending itself against any claim of liability in the premises or any action for
interpleader. Neither the Escrow Agent, nor the Processing Agent, shall be under any obligation to
institute or defend any action, suit, or legal proceeding in connection herewith, unless first
indemnified and held harmless to its satisfaction in accordance with the foregoing, except that
neither shall be indemnified against any loss, liability or expense arising out of its own gross
negligence, recklessness or willful misconduct. Such indemnity shall survive the termination or
discharge of this Agreement or resignation of the Escrow Agent.

8. The Escrow Agent’s Fee. Escrow Agent shall be entitled to fees and expenses for its
regular services as Escrow Agent as set forth in Exhibit A. Additionally, Escrow Agent is
entitled to reasonable fees for extraordinary services and reimbursement of any reasonable out of
pocket and extraordinary costs and expenses related to its obligations as Escrow Agent under this
Agreement, including, but not limited to, reasonable attorneys’ fees. All of the Escrow Agent’s
compensation, costs and expenses shall be paid by the Company.

9. Security Interests. No party to this Escrow Agreement shall grant a security interest in
any monies or other property deposited with the Escrow Agent under this Escrow Agreement, or
otherwise create a lien, encumbrance or other claim against such monies or borrow against the same.

10. Dispute. In the event of any disagreement between the undersigned or the person or
persons named in instructions given pursuant to this Agreement, or any other person, resulting in
adverse claims and demands being made in connection with or for any papers, money or property
involved herein, or affected hereby, the Escrow Agent shall be entitled to refuse to comply with
any demand or claim, as long as such disagreement shall continue, and in so refusing to make any
delivery or other disposition of any money, papers or property involved or affected hereby, the
Escrow Agent shall not be or become liable to the undersigned or to any person named in such
instructions for its refusal to comply with such conflicting or adverse demands, and the Escrow
Agent shall be entitled to refuse and refrain to act until: (a) The rights of the adverse claimants
shall have been fully and finally adjudicated in a court of competent jurisdiction over the parties
and money, papers and property involved herein or affected hereby, or (b) All differences shall
have been adjusted by agreement and the Escrow Agent shall have been notified thereof in writing,
signed by all the interested parties.

11. Resignation of Escrow Agent. Escrow Agent may resign or be removed, at any time, for
any reason, by written notice of its resignation or removal to the proper parties at their
respective addresses as set forth herein, at least sixty (60) days before the date specified for such
resignation or removal to take effect; upon the effective date of such resignation or removal:

     (a) All cash and other payments and all other property then held by the Escrow Agent
hereunder shall be delivered by it to such successor escrow agent as may be designated in
writing by the Company, whereupon the Escrow Agent’s obligations hereunder shall cease and
terminate;

     (b) If no such successor escrow agent has been designated by such date, all obligations
of the Escrow Agent hereunder shall, nevertheless, cease and terminate, and the Escrow Agent’s
sole responsibility thereafter shall be to keep all property then held by it and to deliver
the same to a person designated in writing by the Company or in accordance with the directions of a
final order or judgment of a court of competent jurisdiction.

- 8 -

 

     (c) Further, if no such successor escrow agent has been designated by such date, the
Escrow Agent may petition any court of competent jurisdiction for the appointment of a
successor agent; further the Escrow Agent may pay into such court all monies and property
deposited with Escrow Agent under this Agreement.

12. Notices. All notices, demands and requests required or permitted to be given under the
provisions hereof must be in writing and shall be deemed to have been sufficiently given, upon
receipt, if (i) personally delivered, (ii) sent by telecopy and confirmed by phone or (iii) mailed
by registered or certified mail, with return receipt requested, delivered to the addresses set
forth below, or to such other address as a party shall have designated by notice in writing to the
other parties in the manner provided by this paragraph:

	 	 	 

	(1) If to Company:

	 	CM REIT, Inc.
	 
	 	 
	 

	 	1291 W. Galleria Drive, Suite 200
	 
	 	 
	 

	 	Henderson, Nevada 89014
	 
	 	 
	 

	 	Attention: Stacy M. Riffe
	 
	 	 
	 

	 	Telephone: (702) 739-9090
	 
	 	 
	

	 

	 	Facsimile: (702) 739-7735
	

	 
	 	 
	 
	 	 
	 

	 	Company Wire Instructions:
	 
	 	 
	 

	 	To be provided by the Company
	 
	 	 
	 
	 	 
	(2) If to the Escrow Agent:

	 	UMB Bank, N.A.
	 
	 	 
	 

	 	1010 Grand Blvd., 4th Floor
	 
	 	 
	 

	 	Mail Stop: 1020409
	 
	 	 
	 

	 	Kansas City, Missouri 64106

- 9 -

 

	 	 	 

	 

	 	Attention: Lara Stevens,
	 
	 	 
	 

	 	Corporate Trust
	 
	 	 
	 

	 	Telephone: (816) 860-3017
	 
	 	 
	 

	 	Facsimile: (816) 860-3029
	 
	 	 
	 
	 	 
	 

	 	Escrow Agent Wiring Instructions:
	 
	 	 
	 

	 	UMB Bank, N.A.
	 
	 	 
	 

	 	ABA Routing Number: 101000695
	 
	 	 
	 

	 	Account Number: To be provided by UMB Bank, N.A.
	 
	 	 
	 

	 	Account Name: Escrow Account for the Benefit of
Subscribers to Shares of CM REIT, Inc.
	 
	 	 
	 
	 	 
	 

	 	Checks Payable Information:
	 
	 	 
	 

	 	UMB Bank, N.A., as Escrow Agent for CM REIT, Inc.
	 
	 	 
	 

	 	Attention: Lara Stevens, Corporate Trust
	 
	 	 
	 

	 	1010 Grand Boulevard, 4th Floor
	 
	 	 
	 

	 	M/S 1020409
	 
	 	 
	 

	 	Kansas City, Missouri 64106
	 
	 	 
	 
	 	 
	(3) If to Dealer Manager:

	 	CM Securities, LLC
	 
	 	 
	 

	 	1291 W. Galleria Drive, Suite 200
	 
	 	 
	 

	 	Henderson, Nevada 89014
	 
	 	 
	 

	 	Attention: Todd B. Parriott
	 
	 	 
	 

	 	Telephone: (702) 739-9090
	 
	 	 
	

	 

	 	Facsimile: (702) 739-7735
	

- 10 -

 

	 	 	 

	(4)
If to Processing Agent:

	 	DST Systems, Inc.
	 
	 	 
	 

	 	430 West 7th Street
	 
	 	 
	 

	 	Kansas City, Missouri 64105
	 
	 	 
	 

	 	Attention: Executive Vice President
	 
	 	 
	 

	 	Facsimile: (816) 435-3455

13. Governing Law. This Agreement shall be construed and enforced in accordance with the
laws of the State of Missouri without regard to the principles of conflicts of law.

14. Binding Effect; Benefit. This Agreement shall be binding upon and inure to the benefit
of the permitted successors and assigns of the parties hereto.

15. Modification. This Agreement may be amended, modified or terminated at any time by a
writing executed by the Dealer Manager, the Company and the Escrow Agent.

16. Assignability. This Agreement shall not be assigned by the Escrow Agent without the
Company’s prior written consent.

17. Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed an original, but all of which together will constitute one and the same instrument.
Copies, telecopies, facsimiles, electronic files and other reproductions of original executed
documents shall be deemed to be authentic and valid counterparts of such original documents for all
purposes, including the filing of any claim, action or suit in the appropriate court of law.

18. Headings. The section headings contained in this Agreement are inserted for convenience
only, and shall not affect in any way, the meaning or interpretation of this Agreement.

19. Severability. This Agreement constitutes the entire agreement among the parties and
supersedes all prior and contemporaneous agreements and undertakings of the parties in connection
herewith. No failure or delay of any party hereto in exercising any right, power or remedy may be,
or may be deemed to be, a waiver thereof; nor may any single or partial exercise of any right,
power or remedy preclude any other or further exercise of any right, power or remedy. In the event
that any one or more of the provisions contained in this Agreement, shall, for any reason, be held
to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by
law, such invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement.

- 11 -

 

20. Earnings Allocation; Tax Matters; Patriot Act Compliance; OFAC Search Duties. The
Company or its agent shall be responsible for all tax reporting under this Escrow Agreement. The
Company shall provide to Escrow Agent upon the execution of this Agreement any documentation
requested and any information reasonably requested by the Escrow Agent to comply with the USA
Patriot Act of 2001, as amended from time to time. The Escrow Agent, or its agent, shall complete
an OFAC search, in compliance with its policy and procedures, of each subscription check and shall
inform the Company if a subscription check fails the OFAC search. The Dealer Manager shall provide
a copy of each subscription check in order that the Escrow Agent, or its agent, may perform such
OFAC search.

21. Miscellaneous. This Agreement shall not be construed against the party preparing it,
and shall be construed without regard to the identity of the person who drafted it or the party who
caused it to be drafted and shall be construed as if all parties had jointly prepared this
Agreement and it shall be deemed their joint work product, and each and every provision of this
Agreement shall be construed as though all of the parties hereto participated equally in the
drafting hereof; and any uncertainty or ambiguity shall not be interpreted against any one party.
As a result of the foregoing, any rule of construction that a document is to be construed against
the drafting party shall not be applicable.

22.
Third Party Beneficiaries. The Processing Agent shall be a third party beneficiary under
this Agreement, entitled to enforce any rights, duties or obligations owed to it under this
Agreement notwithstanding the terms of any other agreements between the Processing Agent and any
Party hereto.

23.
Termination of the Escrow Agreement. This Agreement, except
for Sections 7 and 11
hereof, which shall continue in effect, shall terminate upon written notice from the Company to the
Escrow Agent. Unless otherwise provided, final termination of this Agreement shall occur on the
date that all funds held in the Escrow Account are distributed either (a) to the Company or to
subscribers and the Company has informed the Escrow Agent in writing to close the Escrow Account or
(b) to a successor escrow agent upon written instructions from the Company.

24. Relationship of Parties. The Dealer Manager and the Company are unaffiliated with the
Escrow Agent and the Processing Agent, and this Agreement does not create any partnership or joint
venture among either the Dealer Manager or the Company and the Escrow Agent or the Processing Agent.

25. Licenses and Qualifications. From and after the Effective Date, the Processing Agent and
Escrow Agent shall obtain, and continue to maintain until the termination of this Agreement, any
and all required licenses and qualifications necessary or desirable to perform the services and
obligations contemplated by this Agreement.

- 12 -

 

[SIGNATURE PAGES FOLLOW]

- 13 -

 

     IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by their duly
authorized representatives as of the date first written hereinabove.

	 	 	 	 	 
	 	DEALER MANAGER:

CM SECURITIES, LLC

 	 
	 	By:  	/s/
Todd B. Parriott 	 
	 
	 	  	Todd B. Parriott 	 
	 
	 	  	Chief Executive Officer 	 
	 
	 	COMPANY:

CM REIT, INC.

 	 
	 	By:  	/s/
Stacy M. Riffe 	 
	 
	 	  	Stacy M. Riffe 	 
	 
	 	  	Chief Financial Officer 	 

- 14 -

 

	 	 	 	 	 
	 	ESCROW AGENT:

UMB BANK, N.A.

 	 
	 	By:  	/s/ Lara
L. Stevens	 
	 
	 	  	Lara L. Stevens 	 
	 
	 	  	Vice President 	 

- 15 -

 

EXHIBIT A

ESCROW FEES AND EXPENSES

	 	 	 	 	 

	Acceptance Fee
	 	 	 	 
	 
	 	 	 	 
	Review escrow agreement and establish account
	 	$	3,000	 
	 
	 	 	 	 
	 
	 	 	 	 
	Annual Fee
	 	 	 	 
	 
	 	 	 	 
	Maintain account
	 	$	3,000	 
	 
	 	 	 	 
	 
	 	 	 	 
	Transaction Fees
	 	 	 	 
	 
	 	 	 	 
	(a) per outgoing wire transfer
	 	$	35.00	 
	 
	 	 	 	 
	(b) per Form 1099 (Int., B or Misc.)
	 	$	10.00	*
	 
	 	 	 	 
	(c) per investment purchase, sale or settlement
	 	$	35.00	**

 

			
	*	 	Not anticipated to be charged
	 
	**	 	Excludes money market mutual fund transactions

Fees specified are for the regular, routine services contemplated by the Escrow Agreement, and any
additional or extraordinary services, including, but not limited to disbursements involving a
dispute or arbitration, or administration while a dispute, controversy or adverse claim is in
existence, will be charged based upon time required at the then standard hourly rate. In addition
to the specified fees, all expenses related to the administration of the Escrow Agreement (other
than normal overhead expenses of the regular staff) such as, but not limited to, travel, postage,
shipping, courier, telephone, facsimile, supplies, legal fees, accounting fees, etc., will be
reimbursable. Acceptance and first year annual fees will be payable at the initiation of the escrow
and annual fees will be payable in advance thereafter. Other fees and expenses will be billed as
incurred.

- 16 -

 

EXHIBIT B

Form of Subscriber List

- 17 -

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