Document:

exv10w1

Exhibit 10.1

AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND

ESCROW INSTRUCTIONS

     THIS AGREEMENT (“Agreement”) is entered into this 3rd day of June, 2011, by
and between COP — Goldenwest, LLC, a California limited liability company (“Seller”) and
the Westminster Redevelopment Agency (“Agency”), for acquisition by Agency of certain real
property described below. Seller and Agency shall be hereinafter jointly referred to as the
parties.

RECITALS

     A. Seller is the owner of certain real property located in the City of Westminster commonly
known as 15172 Goldenwest Circle, City of Westminster, County of Orange, State of California,
described in greater detail in Exhibit “A” attached hereto and incorporated herein by this
reference which is improved with a vacant industrial building (the “Property”).

     B. Seller desires to sell the Property, and Agency desires to purchase the Property, on the
terms and conditions set forth in this Agreement.

     UPON EXECUTION OF THIS AGREEMENT BY SELLER AND AGENCY, THE PARTIES MUTUALLY AGREE AS FOLLOWS:

PURCHASE AGREEMENT

     1. Incorporation of Recitals. The Recitals above are incorporated into this agreement
by this reference.

     2. Agreement to Sell and Purchase. As of the Effective Date (as defined below),
Seller agrees to sell to Agency, and Agency agrees to purchase from Seller, upon the terms and for
the consideration set forth in this Agreement, the Property.

     3. Agency Board Approval — Effective Date.

          3.1 Following execution of this Agreement, Agency shall have until 5:00 p.m. California time
on June 9, 2011 to take the Agreement before the Westminster Redevelopment Agency Board
(“Agency Board”) to receive its approval of this Agreement. Seller’s offer to sell, at the
Purchase Price and on the terms contained in this Agreement, may not be revoked by Seller until
June 9, 2011. Upon acceptance by the Agency Board this Agreement shall be binding upon both
parties in accordance with the terms contained herein. If the Agency Board does not give its
approval of this Agreement on or before June 9, 2011, then this Agreement shall
automatically become null and void and the parties shall have no further obligations to one another
except for any provisions that expressly survive termination.

          3.2 The effective date of this Agreement (the “Effective Date”) shall be the date this
Agreement is executed by the authorized officers of both Seller and Agency.

 

 

     4. Purchase Price. The total purchase price for the Property, payable in cash through
Escrow, shall be the sum of Nine Million, Four Hundred and Twenty One Thousand, Nine Hundred and
Four Dollars ($9,421,904.00) (the “Purchase Price”). The Purchase Price is all-inclusive of
Seller’s entire interest in the Property and any rights and obligations which Seller may have or
which may arise out of the sale and acquisition of the Property, as more fully explained in Section
24 of this Agreement.

     5. Conveyance of Title. Seller agrees to convey by Grant Deed (as defined below) to
Agency fee simple title to the Property, free and clear of any recorded and actually known
unrecorded monetary liens, assessments, leases, and non-delinquent taxes.

     6. Title Report. Agency has reviewed Title Report No. NCS-484144 prepared by Title
Company dated June 5, 2011 covering the Property, and hereby accepts all recorded exceptions to
title shown on the Title Report excluding any liens set forth in Section 5 above which Seller is
obligated to remove.

     7. Title Insurance Policy. At Closing, Agency’s fee simple title to the Property
shall be insured by a CLTA standard coverage owner’s policy of title insurance in the amount of the
Purchase Price, issued by the Title Company (collectively the “Title Policy”). Agency
shall be responsible for obtaining any survey of the Property at its own expense. The Title Policy
shall insure the fee simple interest in the Property is free and clear of all liens, as set forth
in Section 5 of this Agreement. Seller agrees to pay the premium charged for a standard owner’s
policy and Agency shall pay for all extended coverage and any endorsements Agency seeks to obtain.
Agency’s requested endorsements or extended coverage shall not delay the Closing or constitute a
condition to Closing.

     8. Escrow.

          8.1 Opening Escrow. Agency agrees to open an escrow at First American Title Insurance
Company located at 1 First American Way, Santa Ana, California 92702, Attention: Kathleen Huntsman,
Escrow Officer (“Escrow Company”) in accordance with this Agreement. This Agreement
constitutes the joint escrow instructions of Agency and Seller, and the escrow agent to whom these
instructions are delivered (“Escrow Agent”) is hereby empowered to act under this
Agreement.

          8.2 Grant Deed. Seller shall execute and deliver a Grant Deed to Agency (the
“Grant Deed”) concurrently with this Agreement, in accordance with Section 5 of this
Agreement. A true and correct copy of the Grant Deed is attached hereto as Exhibit “B”, and
is incorporated by this reference. As soon as possible after opening of escrow, Agency will deposit
the executed Grant Deed, with a Certificate of Acceptance attached, with Escrow Agent on Seller’s
behalf. Deposit of the Purchase Price and share of closing costs shall be made by Agency one (1)
business day prior to the Close of Escrow, provided the Agency’s and Seller’s conditions to closing
set forth in this Agreement, including in particular Section 11, are satisfied. Agency and Seller
agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this
transaction.

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          8.3 Insurance. Any existing insurance policies for fire or casualty on the Property
will continue to be maintained by Seller, at Sellers sole expense, until the Close of Escrow.
Insurance policies are not to be transferred, and Seller will cancel its own policies after Close
of Escrow.

          8.4 Escrow Account. All funds received by Escrow Agent shall be deposited in a
general escrow account doing business in the State of California which is insured by the FDIC.

     9. Tax Adjustment Procedure.

     ESCROW AGENT IS AUTHORIZED AND IS INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT
PROCEDURE AS OF THE CLOSING DATE:

          9.1 Delinquent Taxes. Escrow Agent shall pay and charge Seller for any unpaid
delinquent property taxes and/or penalties and interest thereon, and for any delinquent assessments
or bonds encumbering the Property at the Closing.

          9.2 Proration. All current property taxes shall be prorated through Escrow as of the
date of the Close of Escrow, using the customary procedures of the Escrow Agent. Notwithstanding
the foregoing, Seller shall be responsible for and shall pay outside escrow any property taxes
assessed against the Property, which are applicable to any period of time prior to the Close of
Escrow that were not paid through Escrow as a result of any errors in the proration or otherwise.

          9.3 Refund of Taxes. Seller shall have the sole right, after the Close of Escrow, to
apply to the Orange County Tax Collector for refund of any excess property taxes, which have been
paid by Seller with respect to the Property. This refund would apply to the period after Agency’s
acquisition, pursuant to Revenue and Taxation Code Section 5096.7.

          9.4 Miscellaneous Prorations. All other items of income and expense normally
apportioned in sales of real property in similar situations in the jurisdiction where each Property
is located, shall be prorated at Closing by Escrow Agent.

     10. Escrow Agent Authorization.

     AT CLOSING, ESCROW AGENT IS AUTHORIZED TO, AND SHALL:

          10.1 Agency and Seller. Pay and charge Agency fifty percent (50%) and Seller fifty
percent (50%) of all usual escrow fees, charges, and costs.

          10.2 Agency. Pay and charge Agency for transfer taxes and documentary stamp taxes
which arise from conveyance of the Property to Agency. Agency shall pay all premiums, charges and
fees of the Title Company in excess of the premium for a standard owners CLTA title policy in the
amount of the Purchase Price including for the Agency’s account the cost of any extended coverage
and any affirmative endorsements.

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          10.3 Seller. Pay and deduct from the amounts payable to Seller any amount necessary
to place title in the condition necessary to satisfy Section 5 of this Agreement, up to and
including the total amount of unpaid monetary liens (other than non-delinquent taxes and
assessments), principal and interest on note(s) secured by mortgage(s) or deed(s) of trust on the
Property, and all other amounts due and payable in accordance with the terms and conditions of said
trust deed(s) or mortgage(s) including late charges and penalties, if any, for payment in full in
advance of maturity. The Seller shall pay the title insurance premium for a standard CLTA policy
of title insurance in the amount of the Purchase Price. Seller. Pay and deduct from
amounts payable by Seller under Section 5 of this Agreement, any amount necessary to satisfy any
delinquent taxes on the Property together with penalties and interest thereon, and/or delinquent
assessments or bonds, except those in accordance with the terms of this Agreement.

          10.4 Disbursement. Promptly disburse funds and deliver the Grant Deed for recordation
when conditions of this Escrow have been fulfilled by Agency and Seller.

          10.5 Closing Statement. Prior to the Close of Escrow, Escrow Agent shall provide
Seller and Agency with a proposed closing statement for review and comment setting forth the
payments and charges articulated in this Section.

          10.6 Close of Escrow.

     (a) The term “Closing” or “Close of Escrow,” if and where written in
these instructions, shall mean the date the Grant Deed and other necessary instruments of
conveyance are recorded in the office of the Orange County Recorder. Recordation of
instruments delivered through this escrow is authorized, if necessary or proper upon the
Title Company’s irrevocable commitment to issue the Title Policy described in Section 7 of
this Agreement.

     (b) Close of Escrow will not occur until all of the terms and conditions of this
Agreement have been satisfied or waived, including but not limited to the conditions in
Section 11.

     (c) Close of Escrow shall occur three (3) business days following the Agency’s
obtaining a funding commitment for its tax allocation bonds to acquire the Property, but in
no event later than July 1, 2011 (“Closing Date”). Agency agrees to use
commercially diligent efforts to obtain a funding commitment for its tax allocation bonds to
acquire the Property as soon as possible, and give Seller written notification of same.

          10.7 Reserved.

          10.8 Time Limits. All time limits within which any matter specified is to be
performed may be extended only by mutual agreement of the parties in their sole and absolute
discretion. Any amendment of, or supplement to, any instructions must be in writing.

          10.9 Time of the Essence. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS
TO CLOSE AS SOON AS POSSIBLE. If this Escrow is not in a condition to close on or before July
1, 2011, this Agreement shall automatically

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terminate without further instruction by the parties. No such termination shall release either
party then in default from liability for such default.

          10.10 Escrow Agent Responsibility. The responsibility of the Escrow Agent under this
Agreement is expressly limited to Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17,
22, 26, 27, 28, 29, 30, 31, 32, 33, and 34 and to its liability under the Title Policy.

     11. Conditions Precedent to Close of Escrow.

          11.1 Agency’s Conditions Precedent to Closing. The obligation of Agency to complete
the purchase of the Property is subject to the satisfaction of the following conditions, waivable
in Agency’s discretion:

     (a) Seller has delivered through Escrow an executed and recordable Grant Deed
sufficient to convey fee simple title to the Agency as set forth in Sections 5 and 8.2.

     (b) Seller has delivered through Escrow any funds and additional documents as are
reasonably necessary to comply with Seller’s obligations under this Agreement.

     (c) Seller shall not be in default of any of its obligations under the terms of this
Agreement, and all representations of Seller herein are true and correct.

     (d) Escrow Agent shall be committed to deliver to Agency a Title Policy as required by
Section 7 hereof.

     (e) Agency shall not have terminated this Agreement, to the extent termination is
expressly permitted hereunder.

     (f) The Agency Board has approved this Agreement pursuant to Section 3.1 above.

          11.2 Seller’s Conditions Precedent to Closing. The obligation of Seller to complete
the sale of the Property is subject to the satisfaction of the following conditions waivable in
Seller’s discretion:

     (a) Agency is not in default of any of its obligations under the terms of this
Agreement, and all representations of Agency herein are true and correct.

     (b) Agency shall have deposited with the Escrow Agent immediately available funds in an
amount equal to the Purchase Price and the Agency’s share of costs described herein.

     (c) Agency has delivered any documents as are reasonably necessary to comply with
Agency’s obligations hereunder.

     (d) Seller shall not have terminated this Agreement, to the extent termination is
expressly permitted hereunder.

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     12. Delivery of Possession. Seller shall deliver the Property to Agency at the Close
of Escrow free and clear of all, leases, licenses and all possessory rights of any kind or nature,
except as is specifically stated herein to the contrary.

     13. Due Diligence Approval. Prior to the Effective Date, Seller has delivered to
Agency for review copies of those documents, materials and information relating to the Property
that are listed on Exhibit “C” attached hereto (“Property Documents”), and Seller
has made available for Agency’s review any other documents in Seller’s possession relating to the
Property excluding any proprietary, privileged or confidential materials. Agency acknowledges and
agrees that Seller’s Property Documents were provided by Seller to accommodate and facilitate
Agency’s investigations relating to 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 the Property Documents and Agency shall not be entitled to rely on
the Property Documents. Agency must perform its own due diligence investigation of the Property.
Prior to the Effective Date Agency has been given the opportunity to perform any testing,
investigations and studies relating to the Property that Agency desired in its sole and absolute
discretion. Agency has completed all of its due diligence investigations relating to the Property
and upon execution of this Agreement hereby irrevocably and unconditionally approves of the
Property.

     14. [Intentionally Omitted]

     15. Loss or Damage to Improvements. Any material loss or damage to the Property,
including any improvements thereon, by fire or other casualty, occurring prior to the recordation
of the Grant Deed shall be at the risk of Seller. In the event that a material loss or damage to
the real property or any improvements thereon, by fire or other casualty, occurs prior to the
recordation of the Grant Deed, Agency, in its discretion, may elect to either: (i) acquire the
Property pursuant to this Agreement and have Seller pay to Agency the proceeds of any insurance
policy or policies payable to Seller by reason of such casualty, and the Purchase Price shall be
reduced by the amount of any deductible payable under the insurance policy; or (ii) terminate this
Agreement.

     16. Remedies. In the event Seller defaults and as a result of such default fails to
convey the Property to Agency in accordance with the terms of this Agreement, Agency as its sole
and exclusive remedies for such default may either (i) terminate this Agreement; or (ii) within
thirty (90) days of such Seller default file a legal action; provided, however, Agency waives any
claims for consequential or punitive damages.

     17. Possession and Disposition of Personal Property. Possession of the Property at the
Close of Escrow shall be given to Agency upon the recording of the Grant Deed. All of the
furniture, furnishings, and other personal property not physically connected to the Property or to
any building or structure located thereon (collectively “Personal Property”) shall remain
the property of Seller, except as may be specifically agreed between the parties to the contrary in
writing. Seller shall remove or otherwise dispose of all Personal Property located on the Property,
no later than fifteen (15) days after the Close of Escrow. All Personal Property remaining on the
Property after fifteen (15) days following the Close of Escrow shall automatically become the
property of Agency and Agency may dispose of same without liability

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as it alone sees fit. Seller agrees that Agency shall not be liable for any loss of or damage
to the Personal Property, regardless of when loss or damage occurs. Notwithstanding the foregoing,
if Agency is required to dispose of any Personal Property left by Seller, Seller shall be required
to pay to Agency the reasonable cost of its removal and disposal. Seller shall immediately pay
these costs upon receipt of a written demand from the Agency detailing the costs incurred.

     18. Warranties, Representations, and Covenants of Seller. Seller hereby warrants,
represents, and covenants to Agency that:

          18.1 Pending Claims. To the best of Seller’s knowledge, there are no actions, suits,
claims, legal proceedings, or any other proceedings affecting the Property or any portion thereof,
at law, or in equity before any court or governmental entity, domestic or foreign.

          18.2 Encroachments. To the best of Seller’s knowledge, there are no encroachments
onto the Property by improvements on any adjoining property, nor to the best of Seller’s knowledge
do any buildings or improvements located on the Property encroach on other properties.

          18.3 Rental and Leasehold Interests. There are no third parties in possession of any
portion of the Property as lessees, tenants at sufferance, or invitees, and there are no leases or
other agreements concerning all or any portion of the Property exceeding a period of one month.

          18.4 Condition of Property. Up until the Close of Escrow, Seller shall continue to
maintain the Property in accordance with its past practices.

          18.5 Environmental. Except as has been specifically disclosed to Agency in the
Property Documents (as defined below), to the best of Seller’s knowledge there are no Hazardous
Materials located on the Property in violation of applicable law. If Seller becomes aware of any
facts, documents or information at any time which indicates the potential presence of Hazardous
Materials on the Property, other than those facts which have already been disclosed in the Property
Documents, Seller shall immediately notify Agency of those facts. The term “Hazardous
Material” as used in this Agreement shall mean any product, substance, chemical, material or
waste whose presence, nature, quantity and/or intensity of existence, use, manufacture, disposal,
transportation, spill release or effect, either by itself or in combination with other materials
expected to be on the Property: (i) is potentially injurious to the public health, safety or
welfare, the environment or the Property; (ii) is or becomes regulated or monitored by any federal,
state or local governmental authority; or (iii) is a basis for liability of either Seller or Agency
to any governmental agency or third party under any applicable statute or common law theory.
Hazardous Materials shall specifically include, but not be limited to, hydrocarbons, petroleum,
gasoline, crude oil or any products, by-products or fractions thereof, or any material or substance
which is: (i) defined as a “hazardous waste,” “acutely hazardouswaste,” “restricted
hazardous waste,” or “extremely hazardous waste” under Section 25115, 25117 or 25122.7, or
listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5
(Hazardous Waste Control Law); (ii) defined as “hazardous substance” under Section 25316 of the
California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous
Substance Account Act); (iii) defined as a “hazardous material,” “hazardous substance,” or
“hazardous waste” under Section 25501 of the California

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Health and Safety code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans
and Inventory); (iv) defined as a “hazardous substance” under Section 25281of the California Health
and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v)
petroleum; (vi) asbestos; (vii) polychlorinated byphenyls; (viii) designated as a “hazardous
substance” pursuant to the Clean Water Act, 33 U.S.C. § 1321; (ix) defined as a toxic pollutant
pursuant to the Clean Water Act, 33 U.S.C. Section 1317; (ix) defined as a “hazardous waste”
pursuant to the Resource Conservation and Recovery Act, 42 U.S.C. § 6903; or (x) defined as a
“hazardous substance” pursuant to the Comprehensive Environmental Response, Compensation, and
Liability Act, 42 U.S.C. Section 9601.

          18.6 Seller’s Title. Until the Close of Escrow, Seller shall not do anything, which
would impair Seller’s title to any of the Property.

          18.7 Utilities. To the best of Seller’s knowledge, all utilities, without limitation,
including gas, electricity, water, sewage, and telephone, are available to the Property.

          18.8 Conflict with Other Obligation. To the best of Seller’s knowledge, neither the
execution of this Agreement nor the performance of the obligations herein will conflict with, or
breach any of the provisions of any bond, note, evidence of indebtedness, contract, lease
covenants, conditions and restriction, or other agreement or instrument to which Seller or Seller’s
Property may be bound.

          18.9 Authority. Seller is the owner of and has the full right, power, and authority
to sell, convey, and transfer the Property to Agency as provided herein and to carry out Seller’s
obligations hereunder.

          18.10 Bankruptcy. Seller is not the subject of a bankruptcy proceeding, and
permission of a bankruptcy court is not necessary for Seller to be able to transfer the Property as
provided herein.

          18.11 Leasing. Seller warrants that starting from the Effective Date up through the
Close of Escrow Seller shall not enter into any new leases, agreements or encumbrances, and no
amendments to the preceding, that would affect the Property following the Closing, without first
obtaining Agency’s prior written consent, which consent shall not be unreasonably withheld or
delayed.

          18.12 Change of Situation. Until the Close of Escrow, Seller shall, upon learning of
any fact or condition that would cause any of the warranties and representations in this Section 18
not to be true as of the Close of Escrow, immediately give written notice of such fact or condition
to Agency.

          18.13 Definition of Actual Knowledge. References in this Section 18 to the “actual
knowledge” of Seller shall refer only to the actual knowledge of the individual Seller
representatives who are responsible for handling the ownership and operation of the Property (which
knowledge shall not include any imputed or constructive knowledge), and shall not be construed to
impose upon such designated individuals any duty to investigate the matter to which such actual
knowledge, or the absence thereof, pertains or impose any personal liability on such individual.
No claim for a breach of any representation or warranty of Seller shall be actionable

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or payable if the breach in question results from or is based on a condition, state of facts
or other matter which was disclosed by Seller to Agency in writing prior to Closing. Agency shall
be deemed to have actual knowledge of all information in the Title Report and Property Documents.
In the event that Agency has actual knowledge of any breach of a Seller representation, warranty
and/or covenant prior to the Closing and elects to proceed with the Close of Escrow, then Agency
shall be deemed to have irrevocably and unconditionally waived such breach.

     19. AS-IS. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE
DELIVERED TO THE PURCHASER AT THE CLOSING, THE SELLER HAS NOT MADE, AND THE PURCHASER HAS NOT
RELIED ON, ANY INFORMATION, PROMISE, REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING THE
PROPERTY, WHETHER MADE BY THE SELLER, ON THE SELLER’S BEHALF OR OTHERWISE, INCLUDING, WITHOUT
LIMITATION, THE PHYSICAL CONDITION OF THE PROPERTY, THE FINANCIAL CONDITION OF THE TENANTS UNDER
THE LEASES, TITLE TO OR THE BOUNDARIES OF THE PROPERTY, PEST CONTROL MATTERS, SOIL CONDITIONS, THE
PRESENCE, EXISTENCE OR ABSENCE OF HAZARDOUS WASTES, TOXIC SUBSTANCES OR OTHER ENVIRONMENTAL
MATTERS, COMPLIANCE WITH BUILDING, HEALTH, SAFETY, LAND USE AND ZONING LAWS, REGULATIONS AND
ORDERS, STRUCTURAL AND OTHER ENGINEERING CHARACTERISTICS, TRAFFIC PATTERNS, MARKET DATA, ECONOMIC
CONDITIONS OR PROJECTIONS, HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TAX
CONSEQUENCES, LATENT OR PATENT PHYSICAL DEFECTS OR CONDITIONS, UTILITIES, OPERATING HISTORY OR
PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL
LAWS. FURTHERMORE, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE
DELIVERED TO THE PURCHASER AT THE CLOSING, PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND
SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING
SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE
PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY, REAL ESTATE BROKER OR AGENT
REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY,
ORALLY OR IN WRITING AND ANY OTHER INFORMATION PERTAINING TO THE PROPERTY OR THE MARKET AND
PHYSICAL ENVIRONMENTS IN WHICH THEY ARE LOCATED. THE PURCHASER ACKNOWLEDGES THAT, EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS TO BE DELIVERED TO THE PURCHASER AT THE
CLOSING, (I) THE PURCHASER HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF RELYING UPON ITS
OWN INVESTIGATION OR THAT OF ITS CONSULTANTS WITH RESPECT TO THE PHYSICAL, ENVIRONMENTAL, ECONOMIC
AND LEGAL CONDITION OF THE PROPERTY AND (II) THE PURCHASER IS NOT RELYING UPON THE PROPERTY
DOCUMENTS. THE PURCHASER HAS INSPECTED THE PROPERTY

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AND IS FULLY FAMILIAR WITH THE PHYSICAL CONDITION THEREOF AND, SUBJECT TO THE REPRESENTATIONS
AND WARRANTIES MADE IN THIS AGREEMENT, SHALL PURCHASE THE PROPERTY IN ITS “AS IS”, “WHERE IS” AND
“WITH ALL FAULTS” CONDITION ON THE CLOSING DATE. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED HEREIN, IN THE EVENT THAT PURCHASER HAS ACTUAL KNOWLEDGE OF THE DEFAULT OF SELLER (A
“KNOWN DEFAULT”), BUT NONETHELESS ELECTS TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED HEREBY AND
PROCEEDS TO CLOSING, THEN THE RIGHTS AND REMEDIES OF PURCHASER SHALL BE WAIVED WITH RESPECT TO SUCH
KNOWN DEFAULT UPON THE CLOSING AND SELLER SHALL HAVE NO LIABILITY WITH RESPECT THERETO. EXCEPT IN
THE EVENT OF SELLER’S FRAUD, AND EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS
TO BE DELIVERED TO THE PURCHASER AT THE CLOSING, FROM AND AFTER THE CLOSING, PURCHASER SHALL ASSUME
THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE
PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS,
AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE IRREVOCABLY AND UNCONDITIONALLY WAIVED,
RELINQUISHED AND RELEASED SELLER (AND SELLER’S MEMBERS OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES
AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION OR RECOVERY, INCLUDING
WITHOUT LIMITATION THOSE ARISING UNDER CERCLA, HSAA AND/OR THE POLANCO ACT, EXCEPT FOR FRAUD AND
SELLER’S OBLIGATIONS UNDER THIS AGREEMENT (INCLUDING CAUSES OF ACTION IN TORT OTHER THAN FRAUD),
LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY
AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED
AGAINST SELLER (AND SELLER’S MEMBERS, OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT
ANY TIME BY REASON OF OR ARISING OUT OF THE PROPERTY ITS OPERATION ANY WAY IN CONNECTION WITH THE
FOREGOING. AGENCY EXPRESSLY WAIVES THE BENEFITS OF ANY PROVISION OR PRINCIPLE OF FEDERAL STATE OR
LOCAL LAW OR REGULATION THAT MAY LIMIT THE SCOPE OR EFFECT OF THE FOREGOING WAIVER AND RELEASE
INCLUDING, WITHOUT LIMITATION, THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH
PROVIDES: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER
MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR” OR EQUIVALENT LAW OF ANY
JURISDICTION, TO THE EXTENT APPLICABLE.

     This release by Agency 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)

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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.

________________

Agency’s Initials

     20. Warranties and Representations of Agency. The person executing any instruments
for or on behalf of each party to this Agreement is fully authorized to act on behalf of that party
and the Agreement is valid and enforceable against each party to this Agreement in accordance with
its terms and each instrument to be executed pursuant hereto or in connection therewith.

     21. Indemnity.

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

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

          21.3 Limited Effect. Nothing contained in this Section 21 is intended to nor shall in
any way limit the effect of the AS-IS provisions and related disclaimer provisions or the release
provisions in this Agreement; expand the scope or duration of any of the representations and
warranties contained in this Agreement; or otherwise give rise to any claim or cause of action by
either Party against the other, except in the event of a claim by a third party against Seller or
Agency which gives rise to the indemnity obligations set forth in this Section 21. In the event of
any inconsistency between the AS-IS and release provisions in this Agreement and the indemnity
provisions in this Article 21, the AS-IS and release provisions shall control.

     22. Mutually Prepared Agreement. The parties acknowledge that this Agreement was the
subject of negotiations between the parties and shall be considered as being mutually prepared.
Each of the Parties specifically represents and warrants to the other Party was advised to have
this Agreement reviewed by legal counsel of their choice.

     23. Tax Bonds Allocation Contingency. It is understood and agreed between the parties
that the completion of this transaction, and the Close of Escrow, is expressly contingent upon
Agency’s ability to use Redevelopment Agency tax allocation bond proceeds for the Purchase Price in
accordance with Section 10.7(c). Therefore, Agency may terminate this Agreement at any point prior
to the Closing Date with no further obligation to Seller, if it determines, in is sole and absolute
discretion, that the Agency’s funds are not available or otherwise cannot be used to purchase the
Property.

-11-

 

     24. Seller Release. Seller agrees that the payment to be made pursuant to this
Agreement constitutes a complete, full, fair, and final settlement of all claims that Releasors may
have against any of the “Releasees” (as those terms are defined in Section 24(b) of this Agreement)
arising out of the Agency’s acquisition of the Property, the project for which the Property is
being acquired, or the displacement of Releasors from the Property (the “Released Claims”).
By way of example, such Released Claims shall include, but not be limited to, any claims for
compensation for the fee simple interest in the Property; any claims for pre-condemnation damages,
severance damages, or loss of business goodwill; any claims for costs, interest, or attorney’s
fees; any claims based upon any allegations of Releasors that the Agency failed to comply with its
adopted Redevelopment Plan for the Redevelopment Project Area in which the Property is located, the
Agency’s adopted rules for owner participation and business re-entry, and any alleged Agency
obligations arising out of any previous actions relating to solicitation of requests for proposals
for redevelopment of the Property and/or the Agency’s entering into any negotiations or agreements
with respect thereto; any claims for relocation assistance and relocation costs arising out of,
based upon, or relating to, relocation assistance or benefits owing under Government Code § 7260 et
seq., Title 25 of the California Code of Regulations, Section 6000 et seq., or under any other
federal, state or local relocations statutes, regulations or guidelines, including but not limited
to regulations or guidelines of Agency or the City of Westminster; and any other similar claims.
This release shall apply to all such Released Claims, whether arising under the United States or
California Constitutions or under any federal, state, or local law, statute, ordinance, regulation,
rule, official policy, court order, or common law.

     Releasors acknowledge that they have been advised of and understand the provisions of Section
1542 of the California Civil Code, which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

_______________

Seller Initials

     Being aware of said code section, the Releasors hereby expressly waive and relinquish any
rights or benefits each may have thereunder, as well as under any other state or federal statutes
or common law principles of similar effect.

     (a) As used herein, the term “Releasors” shall include Seller, and its officers,
agents, members, employees, subcontractors, heirs, executors, successors, and assigns. The
term “Releasees” shall include the Agency and the City of Westminster, and their respective
elected and appointed officials, officers, directors, employees, attorneys, accountants, or
other professionals and agents.

-12-

 

     (b) Releasors shall and do hereby release and discharge Releasees from and
against all claims, penalties, actions or causes of action, obligations, and demands of any
kind relating to the Released Claims.

     25. Waiver, Consent and Remedies. Each provision of this Agreement to be performed by
Agency and Seller shall be deemed both a covenant and a condition and shall be a material
consideration for Seller’s and Agency’s performance hereunder, as appropriate, and any breach
thereof by Agency or Seller shall be deemed a material default hereunder. Either party may
specifically and expressly waive in writing any portion of this Agreement or any breach thereof,
but no such waiver shall constitute a further or continuing waiver of a preceding or succeeding
breach of the same or any other provision. A waiving party may at any time thereafter require
further compliance by the other party with any breach or provision so waived. The consent by one
party to any act by the other for which such consent was required shall not be deemed to imply
consent or waiver of the necessity of obtaining such consent for the same or any similar acts in
the future. No waiver or consent shall be implied from silence or any failure of a party to act,
except as otherwise specified in this Agreement. Except as set forth in Section 16 above, all
rights, remedies, undertakings, obligations, options, covenants, conditions and agreements
contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other.
Except as otherwise specified in this Agreement either party hereto may pursue any one or more of
its rights, options or remedies hereunder or may seek damages or specific performance in the event
of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or
not stated in this Agreement.

     26. Attorney’s Fees. In the event any declaratory or other legal or equitable action
is instituted between Seller, Agency and/or Escrow Agent in connection with the enforcement, breach
or rescission of this Agreement, then as between Agency and Seller, the prevailing party shall be
entitled to recover from the losing party all of its costs and expenses, including court costs and
reasonable attorneys’ fees, expert witnesses and all fees, costs and expenses incurred on any
appeal or in collection of any judgment.

     27. Notices. 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 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). 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 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.

	 	 	 

	IF TO SELLER:

	 	IF TO AGENCY:
	 
	 	 
	COP — Goldenwest, LLC

	 	Attn: Redevelopment Agency Director
	1920 Main Street, Suite 400

	 	Westminster City Hall
	Irvine, CA 92614

	 	8200 Westminster Blvd.
	Attn: Mr. Jon Carley/Dag Wilkinson

	 	Westminster, CA 92683

- 13 -

 

     Any party may from time to time, by written notice to the other, designate a different
address, which shall be substituted for that specified above.

     28. Default. Failure or delay by either party to perform any covenant, condition or
provision of this Agreement within the time provided herein constitutes default under this
Agreement. The injured party shall give written notice of default to the party in default,
specifying the default complained of. The defaulting party shall immediately commence to cure such
default and shall diligently complete such cure within three (3) days from the date of the notice.
The injured party shall have the right to terminate this Agreement by written notice to the other
party in the event of a default, which is not cured within the time set forth herein.

     29. Entire Agreement. This Agreement and its exhibits constitute the entire agreement
between the parties hereto pertaining to the subject matter hereof, and the final, complete and
exclusive expression of the terms and conditions thereof. All prior agreements, representations,
negotiations and understanding of the parties hereto, oral or written, express or implied, are
hereby superseded and merged herein.

     30. Governing Law and Venue. This Agreement and the exhibits attached hereto have
been negotiated and executed in the State of California and shall be governed by and construed
under the laws of the State of California. The parties consent to the jurisdiction of the
California Courts with venue in Orange County.

     31. Invalidity of Provision. If any provision of this Agreement as applied to any
party or to any circumstance shall be adjudged by a court of competent jurisdiction to be void or
unenforceable for any reason, the same shall in no way affect, (to the maximum extent permissible
by law), any other provision of this Agreement, the application of any such provision under
circumstances different from those adjudicated by the court, or the validity or enforceability of
this Agreement as a whole.

     32. Amendments. No addition to or modification of any provision contained in this
Agreement shall be effective unless fully set forth in writing by Agency and Seller.

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

     34. Time of Essence. Time is of the essence of each provision of this Agreement.

     35. Broker Fees. 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 Grubb & 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

- 14 -

 

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 shall survive the Closing.

     36. Assignment. The terms and conditions, covenants, and agreements set forth herein
shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties
hereto; provided, however, neither party shall have the right to assign this Agreement without the
consent of the other party.

     37. Cooperation. Each party agrees to cooperate with the other in the Closing of this
transaction and, in that regard, to sign any and all documents which may be reasonably necessary,
helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not
limited to, releases or additional agreements.

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

[the remainder of this page intentionally left blank]

- 15 -

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth
herein above.

	 	 	 	 	 
	AGENCY:

WESTMINSTER REDEVELOPMENT AGENCY,

 	 
	By:  	/s/ Mitchell Walker	 
	 	Executive Director 	 
	 	 	 

	 	 	 	 	 
	ATTEST:

 	 
	By:  	/s/ Robin Roberts	 
	 	Agency Secretary 	 

	 	 	 	 	 
	APPROVED AS TO FORM:

 	 
	By:  	/s/ Richard Jones	 
	 	Richard Jones, 	 
	 	Agency General Counsel 	 

	 	 	 	 	 
	SELLER:

COP — GOLDENWEST, LLC, a California limited liability company

 	 
	By:  	/s/
Sharon Kaiser	 
	 	Name:  	Sharon Kaiser	 
	 	Title:  	Authorized
Signatory	 

- 16 -

 

Exhibit “A”

(Legal Description of Property)

PARCEL 2 OF LLA #2003-01 RECORDED DECEMBER 12, 2003 AS INSTRUMENT NO. 2003001474811 OF OFFICIAL
RECORDS.

EXCEPTING AN UNDIVIDED ONE-HALF INTEREST IN AND TO ALL RIGHTS TO OIL, LYING 500 FEET BELOW THE
SURFACE AS USED HEREIN SHALL MEAN RIGHTS TO ALL GAS, OIL, PETROLEUM, AND OTHER HYDROCARBON
SUBSTANCES IN, UNDER OR THAT MAY BE PRODUCED OR RECOVERED FROM THAT PORTION OF SAID LAND BELOW A
DEPTH OF 500 FEET FROM ITS SURFACE, AS CONVEYED TO GOLDEN WEST
INDUSTRIAL PARKS, A CALIFORNIA
CORPORATION, BY DEED RECORDED JULY 06, 1967 IN BOOK 8308, PAGE 359 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THE UNDERGROUND WATER RIGHTS, BUT WITHOUT RIGHTS OF ENTRY TO THE SURFACE
AS DEDICATED TO THE CITY OF WESTMINSTER.

APN: 142-421-13 and 142-315-03

-17-

 

Exhibit “B”

FORM OF GRANT DEED

RECORDING REQUESTED BY AND

WHEN RECORDED RETURN TO:

Westminster City Hall

8200 Westminster Blvd.

Westminster, CA 92683

Attn: Redevelopment Agency Director

AND ALL TAX STATEMENTS TO:

SAME AS ABOVE

	 	 	 
	DOCUMENTARY TRANSFER TAX IS NOT OF PUBLIC RECORD 

AND IS SHOWN ON A SEPARATE SHEET ATTACHED TO THIS DEED
	 	SPACE ABOVE THIS LINE

FOR RECORDER’S USE

GRANT DEED

     FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, COP — Goldenwest, LLC, a
California limited liability company (“Grantor”), hereby grants to Westminster Redevelopment Agency
(“Grantee”), the real property located in the City of Westminster, County of Orange, State of
California, described on Exhibit 1 attached hereto and made a part hereof (the “Real
Property”).

     Such real property is also conveyed to Grantee subject to all liens, encumbrances, easements,
covenants, conditions and restrictions and other matters of record, all of which matters are
specifically incorporated herein by this reference.

	 	 	 	 	 
	 	GRANTOR:

COP — GOLDENWEST, LLC, a California limited

liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 

-18-

 

State of California         )

County of                      )

On                                         , before me,                           
                                  , Notary Public,

(here insert name and title of the officer)

personally appeared                                                                
                                                                            ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature                                         

(Seal)

State of California       )

County of                    )

On
                                         , before me,                  
            
                                                    , Notary Public,

(here insert name and title of the officer)

personally
appeared                                                                  
                                                       ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature                                         

(Seal)

-19-

 

Exhibit 1 to Grant Deed

Legal Description

Real property in the City of Westminster, County of Orange, State of California, described as
follows:

PARCEL 2 OF LLA #2003-01 RECORDED DECEMBER 12, 2003 AS INSTRUMENT NO. 2003001474811 OF OFFICIAL
RECORDS.

EXCEPTING AN UNDIVIDED ONE-HALF INTEREST IN AND TO ALL RIGHTS TO OIL, LYING 500 FEET BELOW THE
SURFACE AS USED HEREIN SHALL MEAN RIGHTS TO ALL GAS, OIL, PETROLEUM, AND OTHER HYDROCARBON
SUBSTANCES IN, UNDER OR THAT MAY BE PRODUCED OR RECOVERED FROM THAT PORTION OF SAID LAND BELOW A
DEPTH OF 500 FEET FROM ITS SURFACE, AS CONVEYED TO GOLDEN WEST
INDUSTRIAL PARKS, A CALIFORNIA
CORPORATION, BY DEED RECORDED JULY 06, 1967 IN BOOK 8308, PAGE 359 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THE UNDERGROUND WATER RIGHTS, BUT WITHOUT RIGHTS OF ENTRY TO THE SURFACE
AS DEDICATED TO THE CITY OF WESTMINSTER.

APN: 142-421-13 and 142-315-03

-20-

 

Certificate of Acceptance

This to certify that the interest in real property conveyed by the foregoing Grant Deed, from
COP-Goldenwest, LLC, a California limited liability company to the Westminster
Redevelopment Agency (the “Agency”) is hereby accepted by the undersigned officer of
the Agency, on behalf of the Agency, pursuant to the authority granted by Agency Resolution _____,
and the Agency consents to the recordation hereof by its duly authorized officer.

	 	 	 	 	 
	 	 	 
	Dated: _______, 2011 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

ATTEST:

______________________

City Clerk

	 	 	 	 	 

	State of California

	 	 	)	 
	County of San Bernardino

	 	 	)	 

     On                                                                
   
              , before me,                                                        
                         ,

                                  
                                        
                                              (insert name and title of the officer)

Notary Public, personally appeared ___________________________,
who proved to me on the basis of satisfactory evidence to
be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.

     I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.

     WITNESS my hand and official seal.

	 	 	 

	Signature                                                            

	 	(Seal)

-21-

 

Exhibit “C”

List of Due Diligence Documents

ALTA Survey (hard copy sent by over-night mail; all of the other documents listed below were sent
electronically)

Advertising Sign (Billboard) Lease

Physical Inspection Reports: 1) Probable Maximum Loss Report dated 1/30/07; 2) Property Condition
Report dated 9/05/06; 3) Zoning & Site Requirements Summary dated 9/15/06; 4) Mechanical Electrical
Plumbing & Fire Protection Report dated 8/25/06; 5) Structural Observation Of Roof dated 11/14/06;
6) Roof Inspection Report dated 11/13/10

Vendor Contracts (Monster Security Camera Monitor Contract; Bay Alarm Burglar Alarm Monitor
Contract; Bay Alarm Fire Monitor Contract

Environmental Documents (there was a link to a zip file full of information)

	•	 	Letter from Environ dated November 10, 2006 re: Focused Ground Water Sampling Results.
	 
	•	 	Phase 1 Environmental Assessment dated September 8, 2006 prepared by Environ.

-22-exv10w2

Exhibit
10.2

Loan No. WB13991

ASSUMPTION AND MODIFICATION AGREEMENT

(Long Form)

THIS ASSUMPTION AND MODIFICATION AGREEMENT (Long Form) (“Modification Agreement”) is executed to be
effective as of August 3, 2011 by and among WELLS FARGO BANK, NATIONAL ASSOCIATION, a national
banking association as successor-by-merger to Wachovia Bank, National Association, a national
banking association (“Lender”), COP-MONROE, LLC, a Florida limited liability company (“Progress Way
Borrower”), COP-CARTER, LLC, a Florida limited liability company (“Winter Garden Borrower”),
COP-HANGING MOSS, LLC, a Florida limited liability company (“Hanging Moss Borrower”) and
COP-GOLDENROD, LLC, a Florida limited liability company (“Goldenrod Borrower”, and individually and
collectively with Progress Way Borrower, Winter Garden Borrower and Hanging Moss Borrower, referred
to herein as “Existing Borrower” or “Existing Borrowers”), COP-SHOEMAKER, LLC, a Delaware limited
liability company (“Shoemaker Borrower”), and COP-SOUTH INDUSTRIAL, LLC, a Delaware limited
liability company (“South Industrial Borrower”, and collectively with Shoemaker Borrower,
“Additional Borrowers”). Additional Borrowers shall herein be referred to individually and
collectively with Existing Borrowers as “Borrowers.”

	A.	 	Existing Borrowers and Lender entered into that certain Loan Agreement dated as of November 13,
2007 (as amended by that certain Extension Agreement (Long Form), that certain First Letter
Agreement, that certain Second Letter Agreement, and that certain Third Letter Agreement, described
below, the “Loan Agreement”). Pursuant to the Loan Agreement, Lender agreed to make a loan (the
“Loan”) to Existing Borrowers in the principal amount of Twenty-Two Million Four Hundred Twenty
Thousand Five Hundred and No/100 Dollars ($22,420,500.00) for the purposes set forth therein. The
following documents, each of which is dated as of November 13, 2007, were executed in connection
with the Loan (among others):

	 	1.	 	That certain Promissory Note evidencing the Loan executed by Existing Borrowers
to the order of Lender, in the original principal amount of $22,420,500.00 (the
“Existing Note”).
	 
	 	2.	 	The following mortgages were executed by one or more Existing Borrowers, as
mortgagor, in favor of Lender, as mortgagee (collectively referred to herein as the
“Existing Deeds of Trust”):

	 	a.	 	That certain Mortgage, Assignment, Security Agreement and Fixture Filing, executed by
Progress Way Borrower, as Mortgagor, in favor of Lender, as Mortgagee, and
recorded in the Official Records of Seminole County, Florida, as Clerk’s #
2007162863, on or about November 20, 2007, as amended by that certain Extension
Agreement (Short Form) dated as of November 13, 2009 (the “Seminole County Short
Form”), executed by and between Lender and Existing Borrowers and recorded in the
Official Records of Seminole County, Florida, as Clerk’s #2009138154 on or about
December 7, 2009;
	 
	 	b.	 	That certain Mortgage, Assignment, Security Agreement and Fixture Filing, executed by
Winter Garden Borrower, as Mortgagor, in favor of Lender, as Mortgagee, and recorded in
the Official Records of Orange County, Florida, as Instrument No. 20070760342, on
or about November 20, 2007, as amended by that certain Extension Agreement (Short
Form) dated as of November 13, 2009 (the “Orange County Short Form”), executed by
and between Lender and Existing Borrowers and recorded in the Official Records of
Orange County, Florida, as Document No. 20090708153 on or about December 4, 2009;
	 
	 	c.	 	That certain Mortgage, Assignment, Security Agreement and Fixture Filing, executed by
Hanging Moss Borrower, as Mortgagor, in favor of Lender, as Mortgagee, and
recorded in the

1

 

Loan No. WB 13991

	 	 	 	Official Records of Orange County, Florida, as Instrument No. 20070760305, on or
about November 20, 2007, as amended by the Orange County Short Form; and
	 
	 	d.	 	That certain Mortgage, Assignment, Security Agreement and Fixture Filing, executed by
Goldenrod Borrower, as Mortgagor, in favor of Lender, as Mortgagee, and recorded
in the Official Records of Orange County, Florida, as Instrument No. 20070760372,
on or about November 20, 2007, as amended by the Orange County Short Form;

	 	3.	 	That certain Limited Guaranty (the “Guaranty”), executed by Cornerstone Core
Properties REIT, Inc., a Maryland corporation, Cornerstone Realty Advisors, LLC, a
Delaware limited liability company, and Cornerstone Operating Partnership, L.P., a
Delaware limited partnership (individually and collectively, “Guarantor”), in favor of
Lender;
	 
	 	4.	 	That certain Environmental Indemnity Agreement (the “Existing Environmental
Indemnity”) executed by Existing Borrowers and Guarantor, in favor of Lender.

	B.	 	Subsequently, Existing Borrowers and Lender entered into that certain Extension Agreement (Long
Form) dated as of November 13, 2009 (the “Extension Agreement (Long Form)”). Pursuant to the
Extension Agreement (Long Form), among other things, Lender confirmed that the Existing Borrowers
successfully exercised their option to extend the Maturity Date to November 13, 2010 pursuant to
Section 2.4 of the Loan Agreement.
	 
	C.	 	Subsequently, Existing Borrowers and Lender entered into (i) that certain letter agreement dated
as of October 21, 2010 (the “First Letter Agreement”), which, among other things, extended the
maturity of the Note to February 13, 2011, (ii) that certain letter agreement dated as of February
23, 2011 (the “Second Letter Agreement”), which, among other things, extended the maturity of the
Note to May 13, 2011, and (iii) that certain letter agreement dated as of April 14, 2011 (the
“Third Letter Agreement”, and collectively with the First Letter Agreement and the Second Letter
Agreement, the “Letter Agreements”), which, among other things, extended the maturity of the Note
to August 13, 2011.
	 
	D.	 	Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth
in the Loan Agreement.
	 
	E.	 	As of the date of this Modification Agreement, prior to the Required Principal Payment (as
described below), the outstanding principal balance of the Loan is Fifteen Million Eight Hundred
Sixty Thousand and No/100 Dollars ($15,860,000.00). Existing Borrowers are not entitled to any
further disbursements of loan proceeds under the Loan Documents.
	 
	F.	 	As used in this Modification Agreement, the term “Loan Documents” means the Loan Agreement, the
Amended and Restated Note (as defined below), the Deeds of Trust (as defined below), the
Environmental Indemnity (as defined below), the Guaranty, the Extension Agreement (Long Form), the
Seminole County Short Form, the Orange County Short Form, the Letter Agreements, the Short Forms
(as defined below), the Shoemaker Environmental Indemnity Agreement (as defined below), the South
Industrial Environmental Indemnity Agreement (as defined below), and the other “Loan Documents”
described in the Loan Agreement. This Modification Agreement also shall constitute a Loan Document.
	 
	G.	 	Additional Borrowers desire to assume all of Existing Borrowers’ obligations to Lender under the
Loan Documents. Additional Borrowers and Existing Borrowers have requested that Lender (i)
consent to the assumption by Additional Borrowers of all of Existing Borrowers’ obligations under
the Loan Documents, without limiting Existing Borrowers’ obligations to Lender in any respect,
which obligations shall continue in full force and effect without offset as if Additional Borrowers
did not exist, and (ii) consent to the addition of

2

 

Loan No. WB 13991

	 	 	the Shoemaker Property and the South Industrial Property, each as defined below, as
Collateral under the Loan, all upon the terms and conditions set forth herein.

NOW, THEREFORE, with reference to the foregoing information, and in consideration of the mutual
covenants and agreements contained in this Modification Agreement, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Borrowers and Lender
agree as follows:

	1.	 	REPRESENTATIONS AND WARRANTIES. Borrowers represent and warrant, as of the Effective Date (as
defined in Section 2.17 below) that:

1.1
REPRESENTATIONS. The statement of facts set forth above is true and correct, and is
hereby incorporated herein as an agreement of Borrowers and Lender. Existing Borrowers
hereby represent and warrant to Lender that (a) to Existing Borrowers’ actual knowledge, no
Event of Default or Unmatured Event of Default has occurred and is continuing that would not
otherwise be cured by the effectiveness of this Modification Agreement, and (b) all
representations and warranties of Existing Borrowers contained in the Loan Agreement or in
any of the other Loan Documents (as the Loan Agreement and such other Loan Documents are
amended hereby) are true and correct as of the date hereof, except to the extent that such
representations or warranties were made as of a specific date, in which case such
representation or warranty was true and correct as of such date. Existing Borrowers reaffirm
all of their obligations under the Loan Documents and relating to any Swap Contracts, and
Existing Borrowers acknowledge that they have no claims, offsets or defenses with respect to
the payment of sums due under the Existing Note or under any Swap Contracts. Without
limiting the foregoing, Borrowers reaffirm Lender’s right, following the occurrence and
during the continuance of any Event of Default, to apply any and all payments made by
Borrowers or otherwise received by Lender with respect to the Loan and any Swap Contracts
between any one or more Borrowers and Lender, including without limitation all proceeds
received from the sale or liquidation of any collateral, to the obligations owing by
Borrowers under the Loan Documents and Swap Contracts in such order and manner deemed
appropriate by Lender in its sole discretion, and Borrowers acknowledge that they shall have
no right to direct Lender as to such application or designate the portion of the obligation
to be satisfied.

	2.	 	MODIFICATION OF LOAN DOCUMENTS. The Loan Agreement (and the other Loan Documents) are hereby
supplemented and modified to incorporate the following terms, which shall supersede and
prevail over any conflicting provisions (which modifications shall be effective as of the
Effective Date (except as otherwise indicated):

	 	2.1	 	DEFINITIONS.

	 	a.	 	The following definitions (i) are hereby added to Section 1.1 of the Loan Agreement
and/or (ii) amend and restate, in their entirety, the existing definitions contained in
Section 1.1 of the Loan Agreement, as applicable:
	 
	 	 	 	“Carry Constant” shall mean the ratio for which the numerator is the Net
Operating Income of the Projects, and the denominator is the Outstanding Loan
Amount.
	 
	 	 	 	“County” shall mean each County in each state where one of the Properties is
located.
	 
	 	 	 	“Deed of Trust” or “Deeds of Trust” shall collectively mean each Mortgage,
Assignment, Security Agreement and Fixture Filing, each Deed of Trust,
Assignment, Security Agreement and Fixture Filing, and each Deed of Trust,
Assignment of Rents and Leases, Security Agreement and Fixture Filing executed by
any Borrower, as mortgagor, and naming Lender, as

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	 	 	 	mortgagee, creating a first priority lien on a Property, the Improvements, and all
other buildings, fixtures and improvements now or hereafter owned or acquired by a
Borrower and situated on such Property, and all rights and easements appurtenant
thereto, securing indebtedness and obligations pursuant to the Loan Documents and any
Swap Contracts with Lender or its Affiliates, all in form and substance acceptable to
Lender, as such deeds of trust or mortgages may be amended, modified, supplemented,
renewed and restated from time to time.
	 
	 	 	 	“Net Operating Income” shall mean, as of a particular date of determination, an
amount equal to (a) the contractually scheduled rental payments from the Projects
based on executed Leases with tenants that (i) have taken physical occupancy (or have
delayed taking physical occupancy solely to allow for the completion of tenant
improvement build-outs), (ii) have commenced rental payment (or have not yet
commenced rental payment solely as a result of a free rent period provided for under
the Lease), and (iii) have not defaulted or made a claim of any offset or right to
terminate due to any default by the landlord under the applicable Lease, for the
twelve (12) month period immediately following the date of determination, plus (b)
the sum of (i) expense reimbursements actually received from the Projects (from
tenants under leases that are included in the calculation of rental payments under
the foregoing clause (a)) for the twelve (12) month period immediately preceding the
date of determination, and (ii) Lender’s reasonable good faith estimate of the
expense reimbursements to be paid under any new Leases (which would be included in
the calculation of rental payments under the foregoing clause (a)) for the twelve
(12) month period immediately following the date of determination, minus (c)
non-capital operating expenses for the twelve (12) month period immediately preceding
the date of determination.
	 
	 	 	 	“Outstanding Loan Amount” shall mean, as of a particular date of determination, all
principal amounts then owing under the Loan and the Loan Documents.
	 
	 	 	 	“Projects” shall collectively mean the Goldenrod Project, the Hanging Moss Project,
the Progress Way Project, the Winter Garden Project, the South Industrial Project,
and the Shoemaker Project.
	 
	 	 	 	“Properties” shall mean, collectively the Goldenrod Property, the Hanging Moss
Property, the Progress Way Property, the Winter Garden Property, the South Industrial
Property, and the Shoemaker Property.
	 
	 	 	 	“Shoemaker Project” shall mean the Shoemaker Property and the Improvements thereon.
	 
	 	 	 	“Shoemaker Property” shall mean the real property described in Exhibit A-5 attached
hereto.
	 
	 	 	 	“South Industrial Project” shall mean the South Industrial Property and the
Improvements thereon.
	 
	 	 	 	“South Industrial Property” shall mean the real property described in Exhibit A-6
attached hereto.”

2.2
REDUCED COMMITMENT. Notwithstanding anything else to the contrary in the Loan Documents,
following the Required Principal Payment (as defined below), as of the Effective Date, the maximum
loan amount available to Borrowers under the Loan shall be reduced from $15,860,000.00 to
$15,360,000.00 (the “Reduced Commitment”), and Borrowers shall not be entitled to any further
disbursements of Loan proceeds. At no time during the term of the Loan shall the outstanding
amounts owing under the Loan exceed the Reduced Commitment. Any amounts repaid under the Loan may
not be re-borrowed.

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2.3
AMENDED AND RESTATED NOTE. On or prior to the Effective Date, Borrowers shall execute and
deliver to Lender that certain Amended and Restated Promissory Note in the face principal
amount of $15,360,000.00 (the “Amended and Restated Note”), dated as of even date herewith, to
the order of Lender, which amends, restates and replaces the Note, in its entirety. Any
reference in any of the Loan Documents to the Note shall hereby be deemed to be a reference to
the Amended and Restated Note.

2.4
INTEREST. Sections 2.3(a), (b) and (c) of the Loan Agreement are hereby deleted in their
entirety and replaced with the following:

	 	 	 	“(a) Interest Rate. Borrower shall pay to Lender interest on the Loan as specified in the Note.
	 
	 	 	 	 (b) Intentionally Deleted.
	 
	 	 	 	 (c) Intentionally Deleted.”

2.5
MATURITY DATE; EXTENSION OPTIONS. The Maturity Date is hereby extended from August 13, 2011
to February 13, 2012. All amounts outstanding under the Loan shall be due and payable no later than
this extended Maturity Date. Any references in any of the Loan Documents to the Maturity Date in
any of the Loan Documents shall refer to the Maturity Date as hereby extended. Borrowers shall have
the option to extend the term of the Loan (the “First Extension”) from the Maturity Date (for
purposes of this Section, the “Original Maturity Date”) to February 13, 2013 (for purposes of this
Section, the “First Extension Maturity Date”), and upon the expiration of the First Extension,
Borrowers shall have the option to further extend the term of the Loan (the “Second Extension”)
from the First Extension Maturity Date to February 13, 2014 (for purposes of this Section, the
“Second Extension Maturity Date”), each such Extension being subject to the satisfaction of each of
the following conditions precedent:

	 	a.	 	Borrowers shall provide Lender with written notice of Borrowers’ irrevocable request to
exercise their option to extend the Maturity Date not more than ninety (90) days but not
less than forty five (45) days prior to (i) the Original Maturity Date, in the case of the
First Extension, and (ii) the First Extension Maturity Date, in the case of the Second
Extension;
	 
	 	b.	 	As of the date of Borrowers’ delivery of notice of request to exercise their option to
extend, and as of the date of the commencement of the applicable Extension, no Event of
Default or Unmatured Event of Default shall have occurred and be continuing, and Borrowers
shall so certify in writing to the best of their knowledge;
	 
	 	c.	 	Immediately prior to the commencement of each Extension, Borrowers shall pay to Lender an
extension fee equal to one-half of one percent (0.5%) of the then-outstanding principal
balance of the Loan;
	 
	 	d.	 	The then existing Loan-to-Value Ratio of the Loan does not exceed (i) sixty-seven percent
(67%) of the appraised value of the Projects based on an updated Appraisal of the Projects to be
ordered by Lender at Borrowers’ expense, determined as of a date within 90 days prior to the
Original Maturity Date, in the case of the First Extension; or (ii) sixty-five percent (65%) of
the appraised value of the Projects based on an updated Appraisal of the Projects to be ordered
by Lender at Borrowers’ expense, determined as of a date within 90 days prior to the First
Extension Maturity Date, in the case of the Second Extension,
provided, however, if the
Loan-to-Value Ratio (as determined by Lender) is not adequate to meet the required Loan-to-Value
Ratio, then Borrowers may pay down the outstanding principal balance of the Loan such that the
required Loan-to-Value Ratio is met;

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Loan No. WB 13991

	 	e.	 	The Projects shall have achieved a Carry Constant of at least (i) ten and one-half percent
(10.5%) as of a date within 90 days prior to the Original Maturity Date, in the case of the
First Extension, or (ii) eleven percent (11%) as of a date within 90 days prior to the First
Extension Maturity Date, in the case of the Second Extension,
provided, however, if the Carry
Constant (as determined by Lender) is not adequate to meet the required Carry Constant, then
Borrowers may pay down the outstanding principal balance of the Loan such that the required
Carry Constant is met.

	 	 	 	Notwithstanding the foregoing, the Second Extension may not come into effect unless the
First Extension shall have been in effect. If each of the foregoing conditions precedent are
satisfied, and the Original Maturity Date is extended as provided above to the First
Extended Maturity Date or the Second Extended Maturity Date, as applicable, as used herein
and in the other Loan Documents, the term “Maturity Date” shall thereafter mean the First
Extended Maturity Date or the Second Extended Maturity Date, as applicable.

2.6
INFORMATION AND STATEMENTS. Sections 10.8(a) and 10.8(c) of the Loan Agreement are hereby
deleted in their entirety and replaced with the following:

“(a) as soon as the same are available, and in any event within one hundred (100)
days after the end of each quarterly period (beginning each January 1 to March 31,
April 1 to June 30, July 1 to September 30, and October 1 to December 31), a copy of
the current financial statements of each Guarantor, prepared in accordance with
generally accepted accounting principals consistently applied, which shall consist of
(1) a balance sheet as of the end of the relevant fiscal period, (2) statements of
income and expenses of each Guarantor for such fiscal period (together, in each case,
with the comparable figures for the corresponding period of the previous fiscal
year), (3) statements of income and expenses and changes in financial position of
each Project for such fiscal period (together, in each case with comparable figures
for the corresponding period of the previous fiscal year), and (4) cash flow
statements of Guarantor (and financial statements for each such Guarantor shall be
certified by an officer of Guarantor). In addition to the preceding, each of the
foregoing documents shall be delivered to Lender with respect to each Borrower at the
end of each quarterly period (beginning each January 1 to March 30, April 1 to June
30, July 1 to September 30; and each October 1, to December 31), as soon as the same
are available, and in any event within 45 days after the end of each fiscal quarter.

(c) monthly property reports which shall consist of an income statement, balance
sheet, and rent roll for each of the Projects for the preceding month, in form and
detail satisfactory to Lender, within 30 days after the close of each month;”

2.7
GUARANTY. The first sentence of Section 31(b) of the Guaranty is hereby deleted in its
entirety and replaced with the following:

“The “Remargin Amount” shall be the amount by which (a) the sum of the total
aggregate indebtedness then owing under the Loan Documents or (if foreclosure has
already occurred) outstanding at the time of foreclosure (and regardless of and
without any deduction for the amount bid at any foreclosure sale), exceeds (b) (i)
seventy percent (70%) of the collective Completed Value (described below) of each of
the Projects as of the Determination Date, if the Determination Date is prior to
Borrowers’ exercise of the First Extension (as defined in the Loan Agreement), (ii)
sixty-seven percent (67%) of the collective Completed Value of each of the Projects
as of the Determination Date, if the Determination Date is during the term of the
First Extension, or (iii) sixty-five percent (65%) of the collective Completed Value
of each of the

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Loan No. WB 13991

Projects as of the Determination Date, if the Determination Date is during
the term of the Second Extension (as defined in the Loan Agreement).”

2.8 ASSUMPTION OF LIABILITY BY ADDITIONAL BORROWER. As of the Effective
Date, Additional Borrowers hereby: (a) assume and agree to pay and perform, jointly
and severally with Existing Borrowers, all indebtedness and obligations of the
“Borrower” under the Loan Documents, whenever accruing (past, present or future) with
the same force and effect as if Additional Borrowers had originally executed and
delivered the Loan Documents along with Existing Borrowers; (b) agree to fully and
timely perform, jointly and severally with Existing Borrowers, each and every term and
condition of the Loan Documents; (c) agree to be bound by all of the conditions and
covenants in the Loan Documents; (d) acknowledge that nothing in this Modification
Agreement shall affect the priority of the liens of the Deeds of Trust over any other
liens and encumbrances affecting the Projects; (f) agree that the Deeds of Trust shall
secure all other sums that may be advanced in the future by Lender to Additional
Borrowers when such sums are evidenced by one or more promissory notes or other
writings stating that they are so secured; and (g) specifically join into and agree to
be bound by the terms and conditions of Section 12.28 of the Loan Agreement (the “Joint
Borrower Provisions”).

2.9 ADDITION OF SHOEMAKER PROPERTY AND SOUTH INDUSTRIAL PROPERTY. In
connection with this Modification Agreement, Shoemaker Borrower shall pledge, as
additional Collateral under the Loan, the Shoemaker Property. In connection therewith,
Shoemaker Borrower shall execute and deliver to Lender, on or prior to the Effective
Date, that certain Deed of Trust, Assignment, Security Agreement and Fixture Filing
dated as of even date herewith encumbering the Shoemaker Property (the “Shoemaker Deed
of Trust”). Additionally, in connection with this Modification Agreement, South
Industrial Borrower shall pledge, as additional Collateral under the Loan, the South
Industrial Property. In connection therewith, South Industrial Borrower shall execute
and deliver to Lender, on or prior to the Effective Date, that certain Deed of Trust,
Assignment of Rents and Leases, Security Agreement and Fixture Filing dated as of even
date herewith encumbering the South Industrial Property (the “South Industrial Deed of
Trust”, and collectively with the Shoemaker Deed of Trust, the “Additional Collateral
Deeds of Trust”). For the avoidance of doubt, the Additional Collateral Deeds of Trust
shall constitute “Deeds of Trust”, as such term is defined in the Loan Agreement. In
accordance with the terms and provisions thereof, the Additional Collateral Deeds of
Trust shall secure, among other things, Existing Borrowers’ and Additional Borrowers’
obligations under the Loan Documents. Additionally, on prior to the Effective Date,
Shoemaker Borrower and Guarantor shall execute and deliver to Lender that certain
Environmental Indemnity Agreement (the “Shoemaker Environmental Indemnity Agreement”),
of even date herewith, with respect to the Shoemaker Property, and, on or prior to the
Effective Date, South Industrial Borrower and Guarantor shall execute and deliver to
Lender that certain Environmental Indemnity Agreement (the “South Industrial
Environmental Indemnity Agreement”), of even date herewith, with respect to the South
Industrial Property, each in form and substance satisfactory to Lender. Further,
Exhibits A-5 and A-6 attached hereto, which contain descriptions of the Shoemaker
Property and the South Industrial Property, respectively, are hereby inserted and
attached to the Loan Agreement as Exhibits A-5 and A-6 thereto.

2.10 EXHIBIT D TO LOAN AGREEMENT. Exhibit D to the Loan Agreement is hereby
deleted in its entirety and replaced with the Exhibit D attached hereto.

2.11 SECURITY INTEREST. For the purpose of securing all obligations of
Additional Borrowers and Existing Borrowers contained in the Loan Documents, Additional
Borrowers hereby grant to Lender a security interest in all of their interests in the
Shoemaker Property and the South Industrial Property that is personal property and that
is now owned or hereafter acquired by Additional Borrowers. Additional Borrowers
hereby authorize Lender at any time and from time

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Loan No. WB 13991

to time to file in any filing office in any UCC jurisdiction one or more financing
or continuation statements and amendments thereto, relative to all or any part of
the Projects, without the signature of Additional Borrowers where permitted by law.
Lender and Additional Borrowers acknowledge and agree that the Guaranty and each
Environmental Indemnity continue to not be secured by the Deeds of Trust.

2.12 NO RELEASE OF EXISTING BORROWER. Nothing contained in this
Modification Agreement shall constitute a release, waiver, relinquishment or
termination of any of Existing Borrowers’ indebtedness or obligations under the Loan
Documents. Existing Borrowers hereby ratify, confirm and reaffirm all of such
indebtedness and obligations, which remain unmodified (except as modified by this
Modification Agreement) and in full force and effect.

2.13 CONSENT TO ASSUMPTION. As of the Effective Date, Lender hereby
consents to the assumption by Additional Borrowers of the Loan and of all obligations
under the Loan Documents, and the addition of Additional Borrowers to the parties
(along with Existing Borrowers) that collectively constitute the “Borrower” under the
Loan Agreement and the other Loan Documents. This consent is made solely for the
benefit of the parties hereto and shall not be deemed, nor shall the same constitute, a
waiver by Lender of any of its rights under any of the Loan Documents. This consent by
Lender shall not constitute a consent to any subsequent assignment or transfer and
shall not relieve Additional Borrowers, Existing Borrowers or any Person claiming under
or through Additional Borrowers or Existing Borrowers of the obligation to obtain
Lender’s consent, in accordance with the Loan Agreement, to any future assignment or
transfer.

2.14 NO OTHER MODIFICATIONS. Except as expressly set forth in this
Modification Agreement, the Loan Documents shall be and remain unmodified and in full
force and effect.

2.15 SECURED OBLIGATIONS. The Deeds of Trust and all other Loan Documents
which secure Borrowers’ indebtedness and obligations under the Loan Documents (but
excluding those documents which expressly do not secure Borrowers’ indebtedness and
obligations under the Loan Documents) shall secure, in addition to all other
indebtedness and obligations secured thereby, the payment and performance of all
present and future indebtedness and obligations of Borrowers under this Modification
Agreement, the Amended and Restated Note, and any and all amendments, modifications,
renewals and/or extensions of this Modification Agreement or the Amended and Restated
Note, regardless of whether any such amendment, modification, renewal or extension is
evidenced by a new or additional instrument, document or agreement. Each of the
Borrowers acknowledges, agrees and reaffirms that each of the Deeds of Trust secures,
in addition to all other indebtedness and obligations stated or specified therein to be
secured thereby, (i) all indebtedness and obligations owing under the Loan Agreement,
as amended hereby (and as the same may hereafter be further amended or modified from
time to time), (ii) all indebtedness and obligations owing under the Amended and
Restated Note (as the same may hereafter be further amended or modified from time to
time), (iii) all indebtedness and obligations owing under or in connection with any and
all Swap Contracts between Wells Fargo Bank, National Association (or its Affiliates
and/or successors) and any one or more Borrowers (or their Affiliates), and (iv) all
“Obligations,” as that term is defined in each of the Deeds of Trust. The Deeds of
Trust shall not secure any Environmental Indemnity, the Guaranty, or any other Loan
Document that is expressly stated to be unsecured.

2.16 DEFINITIONS. Except as provided in this Modification Agreement, all
references in the Loan Agreement and in the other Loan Documents (i) to the Note shall
mean the Amended and Restated Note, (ii) to the Loan Agreement shall mean the Loan
Agreement as amended by this Modification Agreement, (iii) to the Environmental
Indemnity shall include, without limitation, the Existing Environmental Indemnity, the
Shoemaker Environmental Indemnity Agreement and the South Industrial Environmental
Indemnity Agreement, (iv) to the Guaranty shall mean the Guaranty as

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Loan No. WB 13991

amended by this Modification Agreement, (v) to the Deeds of Trust shall include,
without limitation, the Existing Deeds of Trust, the Shoemaker Deed of Trust and the
South Industrial Deed of Trust, (vi) to Borrower shall mean the Existing Borrowers
and the Additional Borrowers, individually and collectively, (vii) to the Loan
Documents shall mean the Loan Documents as such term is defined in this Modification
Agreement, and (viii) to any particular Loan Document shall mean such Loan Document
as modified by this Modification Agreement, and all prior amendments, or any
document executed pursuant thereto.

2.17 CONDITIONS PRECEDENT. Before this Modification Agreement becomes
effective (the “Effective Date”) and Lender becomes obligated under it, all of
the following conditions shall have been either (i) satisfied at Borrowers’ sole cost
and expense in a manner acceptable to Lender in the exercise of its sole judgment or
(ii) waived by Lender in writing. Once all of the following conditions have been
satisfied or waived by Lender in accordance with the foregoing sentence, the Effective
Date shall be deemed to be August 12, 2011.

	 	a.	 	Lender shall have received from Borrowers a principal payment (the
“Required Principal Payment”) in the amount of $500,000.00 from Borrowers’
own funds (i.e., not from Loan funds).
	 
	 	b.	 	Lender shall have received from Borrowers the modification fee in the
amount of $37,150.00.
	 
	 	c.	 	Lender shall have received reimbursement, in immediately available
funds, of all costs and expenses incurred by Lender in connection with this
Modification Agreement or of any other amounts owing under the Loan.
	 
	 	d.	 	Lawyers Title Insurance Corporation (“Title Company”) shall
have issued and delivered to Lender, or shall have irrevocably and unconditionally
committed to issue for the benefit of Lender, such endorsements to the title
policies issued in connection with the Existing Deeds of Trust as Lender shall
request to insure the validity and continuing first position lien priority of the
Deeds of Trust, as amended hereby, including a Modification of Mortgage Endorsement
(with no creditor’s rights exception).
	 
	 	e.	 	Title Company shall have issued and delivered to Lender, or shall have
irrevocably and unconditionally committed to issue for the benefit of Lender, such
title policies issued in connection with the Additional Collateral Deeds of Trust
as Lender shall request to insure the valid and first position lien priority of the
Additional Collateral Deeds of Trust, including any endorsements thereto required
by Lender in its sole discretion.
	 
	 	f.	 	Lender shall have received from Additional Borrowers all documents
evidencing the formation, organization, valid existence and good standing of
Additional Borrowers.
	 
	 	g.	 	Lender shall have filed UCC-1 financing statements with the applicable
Secretary of State’s office to perfect Lender’s security interest in the personal
property described in the Shoemaker Deed of Trust and the South Industrial Deed of
Trust.
	 
	 	h.	 	Lender shall have received fully executed originals of this
Modification Agreement, the Amended and Restated Note, the Short Forms, the
Additional Collateral Deeds of Trust, the Shoemaker Environmental Indemnity
Agreement, the South Industrial Environmental Indemnity Agreement, and the Consent
of Guarantors attached hereto, any appropriate officer certificates or other
certificates requested by Lender, and such other documents and agreements as Lender
shall request, all in form and substance satisfactory to Lender.

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Loan No. WB 13991

	 	i.	 	Lender shall have received legal opinions issued by counsel for
Borrowers, opining as to the due organization, valid existence and good standing of
the Additional Borrowers, and the due authorization, execution, delivery,
enforceability and validity of this Modification Agreement, the Amended and
Restated Note, the Short Forms, the Additional Collateral Deeds of Trust, the
Shoemaker Environmental Indemnity Agreement, the South Industrial Environmental
Indemnity Agreement with respect to each Borrower.
	 
	 	j.	 	Borrowers shall have paid Lender’s attorneys fees, and all costs and
expenses of recording and issuing all required title policy endorsements.
	 
	 	k.	 	No change shall have occurred in the financial condition of Borrowers,
any Guarantor or in the Projects, which would have, in Lender’s sole judgment, a
material adverse effect on the Projects or on Borrowers’ or any Guarantor’s ability
to repay the Loan or otherwise perform its obligations under the Loan Documents.
	 
	 	l.	 	The representations and warranties contained in the Loan Agreement and
in all other Loan Documents are true and correct as of the date hereof and as of
the Effective Date, except to the extent that such representations or warranties
were made as of a specific date, in which case such representation or warranty was
true and correct as of such date.
	 
	 	m.	 	Lender shall have received all documents evidencing the formation,
organization and valid existence of the Existing Borrowers and any Guarantor which
is an entity (to the extent such documents have been amended from the versions
previously sent to Lender or have not previously been delivered to Lender) and the
authorization for the execution, delivery, and performance of the Agreement.
	 
	 	n.	 	No Event of Default or Unmatured Event of Default has occurred and is
continuing.

	 	2.18	 	Post-Closing Obligation. On or prior to fifteen (15) days following the
Effective Date, Borrower shall deliver to Lender (i) a filed qualification for Shoemaker
Borrower to do business in California, (ii) a good standing certificate for Shoemaker
Borrower issued by the California Secretary of State, (iii) a filed qualification for
South Industrial Borrower to do business in Arizona, (iv) a good standing certificate for
South Industrial Borrower issued by the Arizona Secretary of State.

	3.	 	WARRANTIES. Each Borrower is duly organized and validly existing. Except as
previously disclosed in writing by Borrowers to Lender, there have been no changes in the
organization, composition, ownership structure or formation documents of any Existing Borrower
since the Closing Date. Each Guarantor that is an entity is duly formed and validly existing,
and has the power to own its assets, to transact the business in which it is now engaged and
to continue to guaranty the Loan. Except as previously disclosed in writing by Borrowers to
Lender, there have been no changes in the organization, composition, or ownership of any
Guarantor which are entities since the Closing Date.

	 	3.1	 	ADDITIONAL BORROWER AFFIRMATION: Additional Borrowers hereby
acknowledge and agree that:

	 	a.	 	all of the terms, provisions, covenants, representations, warranties,
conditions and stipulations contained in the Loan Documents, and all of
“Borrowers’” obligations under the Loan Documents, as assumed hereunder, are hereby
ratified and confirmed by Additional Borrowers in all respects, and shall continue
to apply with full force and effect to Additional Borrowers from and after the date
hereof;

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Loan No. WB 13991

	 	b.	 	all of the representations and warranties made by the “Borrower” under
the Loan Documents shall be deemed to be remade by Additional Borrowers as of the
date hereof with respect to all matters specified therein and with respect to this
Modification Agreement fully as if set forth herein, all of which remain true and
correct;
	 
	 	c.	 	as of the Effective Date, the obligations of “Borrower” under the Loan
Documents, as assumed hereunder, are not subject to any reduction, limitation,
impairment or termination for any reason, including any claim of waiver, release,
surrender or compromise;
	 
	 	d.	 	as of the Effective Date, there are no offsets, defenses or
counterclaims to the obligations under the Loan Documents which have been assumed
by Additional Borrowers hereunder; and
	 
	 	e.	 	as of the Effective Date, no Event of Default exists under any of the
Loan Documents;
	 
	 	f.	 	as of the Effective Date, Additional Borrowers have personal knowledge
of all terms and conditions of the Loan Documents, and further agree that Lender
has no obligation or duty to provide any information to Additional Borrowers
regarding the terms and conditions of the Loan Documents. Additional Borrowers
further understand and acknowledge that, except as expressly provided in this
Modification Agreement, Lender has not waived any right of Lender or obligation of
“Borrower” under the Loan Documents and Lender has not agreed to any modification
of any provision of any Loan Document or to any extension of the Loan.

	4.	 	NON-IMPAIRMENT. Except as expressly provided herein, nothing in this Modification
Agreement shall alter or affect any provision, condition or covenant contained in the Loan
Agreement or other Loan Documents or affect or impair any rights, powers or remedies
thereunder, and the parties hereto intend that the provisions of the Loan Agreement and other
Loan Documents shall continue in full force and effect except as expressly modified hereby.

	5.	 	MISCELLANEOUS. This Modification Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Florida applicable to contracts made and
performed in such state, without regard to the principles thereof regarding conflict of laws,
and any applicable laws of the United States of America. The headings used in this
Modification Agreement are for convenience only and shall be disregarded in interpreting the
substantive provisions of this Modification Agreement. If any provision of this Modification
Agreement shall be determined by a court of competent jurisdiction to be invalid, illegal or
unenforceable, that portion shall be deemed severed herefrom and the remaining parts shall
remain in full force as though the invalid, illegal or unenforceable provision had never been
a part hereof. As used in this Modification Agreement, the term “include(s)” shall mean
“include(s), without limitation,” and the term “including” shall mean “including, but not
limited to.” In the event of any inconsistency between this Modification Agreement and the
Loan Documents, this Modification Agreement shall govern.

	6.	 	COUNTERPARTS. The Loan Documents, including this Modification Agreement, contain or
expressly incorporate by reference the entire agreement of the parties with respect to the
matters contemplated therein, and supersede all prior negotiations. No reference to this
Modification Agreement is necessary in any instrument or document at any time referring to a
Loan Document. Any reference to a Loan Document (including in any other Loan Document) shall
be deemed a reference to such document as amended hereby.

	7.	 	INTEGRATION; INTERPRETATION. This Modification Agreement contains or expressly
incorporates by reference the entire agreement of the parties with respect to the matters
contemplated herein and supersedes all prior negotiations or agreements, written or oral, and
shall not be modified except by written instrument executed by all parties.

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Loan No. WB 13991

	8.	 	GENERAL RELEASE. As further inducement to Lender to enter into this Modification
Agreement, Existing Borrowers and each Guarantor (by their execution of the Guarantor’s
Consent attached hereto) hereby release Lender as follows:

8.1    Existing Borrowers, each Guarantor and their respective heirs, successors and
assigns (collectively, the “Releasing Parties”) do hereby release, acquit and
forever discharge Lender of and from any and all claims, demands, obligations,
liabilities, indebtedness, breaches of contract, breaches of duty or any relationship,
acts, omissions, misfeasance, malfeasance, cause or causes of action, debts, sums of
money, accounts, compensation, contracts, controversies, promises, damages, costs,
losses and expenses of every type, kind, nature, description, or character, whether
known or unknown, suspected or unsuspected, liquidated or unliquidated, each as though
fully set forth herein at length, which in any way arise out of, are connected with or
related to the Loan Documents, this Modification Agreement or any earlier and/or other
agreement or document referred to therein or any other action, claim, cause of action,
demand, damage or cost of whatever nature as of the Effective Date (collectively, the
“Released Claims”).

8.2    The agreement of the Releasing Parties, as set forth in the preceding
subparagraph 8.1 shall inure to the benefit of the successors, assigns, insurers,
administrators, agents, employees, and representatives of Lender.

8.3    The Releasing Parties have read the foregoing release, fully understand the
legal consequences thereof and have obtained the advice of counsel with respect
thereto. The Releasing Parties further warrant and represent that they are authorized
to make the foregoing release.

8.4    This release is not to be construed and does not constitute an admission of
liability on the part of Lender. This release shall constitute an absolute bar to any
Released Claim of any kind, whether such claim is based on contract, tort, warranty,
mistake or any other theory, whether legal, statutory or equitable. The Releasing
Parties specifically agree that any attempt to assert a claim barred hereby shall
subject each of them to the provisions of applicable law setting forth the remedies for
the bringing of groundless, frivolous or baseless claims or causes of action.

8.5    The Releasing Parties acknowledge and agree that they understand the meaning
and effect of Section 1542 of the California Civil Code which provides:

	 	 	 	“A general release does not extend to claims which the creditor
does not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.”

[Remainder of Page Left Intentionally Blank]

12

 

Loan No. WB 13991

THE RELEASING PARTIES AGREE TO ASSUME THE RISK OF ANY AND ALL UNKNOWN, UNANTICIPATED OR
MISUNDERSTOOD DEFENSES, CLAIMS, CONTRACTS, LIABILITIES, INDEBTEDNESS AND OBLIGATIONS WHICH ARE
RELEASED, WAIVED AND DISCHARGED BY THIS AGREEMENT. THE RELEASING PARTIES HEREBY WAIVE AND
RELINQUISH ALL RIGHTS AND BENEFITS WHICH THEY MIGHT OTHERWISE HAVE UNDER THE AFOREMENTIONED SECTION
1542 OF THE CALIFORNIA CIVIL CODE OR ANY SIMILAR FLORIDA LAW, TO THE EXTENT SUCH LAW MAY BE
APPLICABLE, WITH REGARD TO THE RELEASE OF SUCH UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES,
CLAIMS, CONTRACTS, LIABILITIES, INDEBTEDNESS AND OBLIGATIONS. TO THE EXTENT THAT SUCH LAWS MAY BE
APPLICABLE, THE RELEASING PARTIES WAIVE AND RELEASE ANY RIGHT OR DEFENSE WHICH THEY MIGHT OTHERWISE
HAVE UNDER ANY OTHER LAW OF ANY APPLICABLE JURISDICTION WHICH MIGHT LIMIT OR RESTRICT THE
EFFECTIVENESS OR SCOPE OF ANY OF ITS WAIVERS OR RELEASES HEREUNDER.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Progress Way

	 	Winter Garden
	 	Hanging Moss
	 	Goldenrod Borrower’s
	Borrower’s

	 	Borrower’s
	 	Borrower’s
	 	Initials
	Initials

	 	Initials
	 	Initials	 	 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Cornerstone Core

	 	Cornerstone Realty
	 	Cornerstone
	 	 
	Properties, REIT,

	 	Advisors, LLC’s
	 	Operating	 	 
	Inc.’s Initials

	 	Initials
	 	Partnership, L.P.’s	 	 
	 

	 	 	 	Initials	 	 

[Remainder of Page Left Intentionally Blank]

13

 

Loan No. WB 13991

IN WITNESS WHEREOF, Borrowers and Lender have caused this Modification Agreement to be duly
executed as of the date first above written.

“LENDER”

WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as
successor-by-merger to Wachovia Bank, National Association, a national banking
association

	 	 	 	 	 

	By:
	 	/s/ Leslie Baines	 	 
	 

	 	 

Name: Leslie Baines

	 	 
	 

	 	Title: VP
	 	 

“BORROWERS”

COP-MONROE, LLC, a Florida limited liability company

	 	 	 	 	 	 	 	 	 	 	 	 	 

	By:	 	COP—ORL ONE, LLC, a Florida limited liability company, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Cornerstone Operating Partnership, L.P., a Delaware limited
partnership, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland
corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Sharon C. Kaiser
	 

	 	 	 	 	 	 	 	 

Name: Sharon C. Kaiser

	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:
CFO

	 	 

S-1

 

Loan No. WB 13991

	 	 	 	 	 	 	 	 	 	 	 

	COP-CARTER, LLC, a Florida limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	COP—ORL ONE, LLC, a Florida limited liability company, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Cornerstone Operating Partnership, L.P., a Delaware limited
partnership, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland
corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Sharon C. Kaiser	 	 
	 

	 	 	 	 	 	 	 	 

Name: Sharon C. Kaiser

	 	 
	 

	 	 	 	 	 	 	 	Title:
CFO

	 	 

	 	 	 	 	 	 	 	 	 	 	 

	COP-HANGING MOSS, LLC, a Florida limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	COP—ORL ONE, LLC, a Florida limited liability company, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Cornerstone Operating Partnership, L.P., a Delaware limited
partnership, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland
corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Sharon C. Kaiser	 	 
	 

	 	 	 	 	 	 	 	 

Name: Sharon C. Kaiser

	 	 
	 

	 	 	 	 	 	 	 	Title:
CFO

	 	 

	 	 	 	 	 	 	 	 	 	 	 

	COP-GOLDENROD, LLC, a Florida limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	COP—ORL ONE, LLC, a Florida limited liability company, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Cornerstone Operating Partnership, L.P., a Delaware limited
partnership, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland
corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/
Sharon C. Kaiser	 	 
	 

	 	 	 	 	 	 	 	Name: Sharon C.
Kaiser

	 	 
	 

	 	 	 	 	 	 	 	Title:
CFO

	 	 

S-2

 

Loan No. WB 13991

	 	 	 	 	 	 	 

	COP-SHOEMAKER, LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	By:	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation, its Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Sharon C. Kaiser	 	 
	 

	 	 	 	 

Name: Sharon C. Kaiser

	 	 
	 

	 	 	 	Title:    
CFO

	 	 
	 
	 	 	 	 	 	 
	COP-SOUTH INDUSTRIAL, LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	By:	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation, its Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Sharon C. Kaiser	 	 
	 

	 	 	 	 

Name:  Sharon C. Kaiser

	 	 
	 

	 	 	 	Title:  CFO

	 	 

(ALL SIGNATURES MUST BE ACKNOWLEDGED)

S-3

 

Loan No. WB 13991

GUARANTOR’S CONSENT

The undersigned, having read and understood the foregoing Assumption and Modification
Agreement (Long Form) (“Agreement”), hereby (i) consent to all of the terms and provisions
of the Agreement (including without limitation Sections 2.2, 2.3, 2.5, 2.7, 2.8, 2.9, 2.10, 2.11,
2.12, 2.14, 8 of the Agreement), (ii) agrees that the Agreement does not terminate or diminish any
of the obligations of the undersigned to Lender under that certain Limited Guaranty dated November
13, 2007 executed by the undersigned (the “Guaranty”), or under that certain Environmental
Indemnity Agreement dated as of November 13, 2007, and executed by the undersigned and Existing
Borrowers in favor of Lender (the “Environmental Indemnity Agreement”) and (iii) reaffirms
its obligations under the Guaranty and Environmental Indemnity Agreement in light of the Agreement.
The undersigned hereby acknowledges and agrees that Lender shall have the right to apply payments
received from Borrowers to the Obligations in any manner elected by Lender, even if the manner of
application does not reduce at all or to the greatest extent Guarantor’s maximum aggregate
obligation under the Guaranty for payment of the Guaranteed Obligations (as defined in the
Guaranty). The undersigned, having reread the Guaranty and the Environmental Indemnity Agreement,
and with advice of their own counsel, hereby reaffirm and restate all waivers, authorizations,
agreements and understandings set forth in the Guaranty and the Environmental Indemnity Agreement,
as though set forth in full herein. Capitalized terms used in this consent but not otherwise
defined shall have the meanings ascribed to such terms in the Agreement or the Loan Agreement (as
defined in the Agreement).

Dated as of: August 3, 2011.

     “GUARANTOR”

	 	 	 	 	 

	“Guarantor”	 	 
	 
	 	 	 	 
	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation	 	 
	 
	 	 	 	 
	By:	 	 	 	 
	 

	 	 

Name:

	 	 
	 

	 	Title:

	 	 
	 
	 	 	 	 
	CORNERSTONE REALTY ADVISORS, LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 
	By:	 	 	 	 
	 

	 	 

Name:

	 	 
	 

	 	Title:

	 	 
	 
	 	 	 	 
	CORNERSTONE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership	 	 
	 
	 	 	 	 
	By:

	 	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation, its general
partner	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:

	 	 
	 

	 	Title:

	 	 

(ALL SIGNATURES MUST BE ACKNOWLEDGED)

CONSENT

 

Loan No. WB13991

EXHIBIT A-5

REAL PROPERTY IN THE CITY OF SANTA FE SPRINGS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

Parcel 1:

That portion of the Southwest quarter of the Northeast quarter of Section 20, Township 3 South,
Range 11 West, in the Rancho Los Coyotes, in the City of Santa Fe Springs, County of Los Angeles,
State of California, as shown on a copy of Map recorded in Book 41819, Page 141 et seq., Official
Records, in the Office of the County Recorder of said County as set forth in the Lot Line
Adjustment recorded August 28, 2002 as Document No. 02-2026133, described as follows:

Beginning at the intersection of the Westerly line of said Northeast quarter with the Southwesterly
line of the Southern Pacific Railroad Right-of-Way 100 feet wide; thence along said Southwesterly
line South 57°13’36” East 163.17 feet; thence South 00°12’23” West 42.00 feet; thence South
01°24’36” West 54.00 feet; thence South 00°12’23” West 62.53 feet; thence South 89°58’44” West
136.31 feet to the Westerly line of said Northeast quarter; thence Northerly along said Westerly
line to the Point of Beginning.

Except the Westerly 15.00 feet of said land for roads, railroads and ditches as reserved in the
Deed recorded in Book 934, Page 310 of Deeds.

Parcel 2:

That portion of the Southwest quarter of the Northeast quarter of Section 20, Township 3 South,
Range 11 West, in the Rancho Los Coyotes, in the City of Santa Fe Springs, County of Los Angeles,
State of California, as shown on a copy of Map, recorded in Book 41819, Page 141, et seq., Official
Records, in the Office of the County Recorder of said County as set forth in the Lot Line
Adjustment recorded August 28, 2002 as Document No. 02-2026133, described as follows:

Beginning at the intersection of the Westerly line of said Northeast quarter with the Southwesterly
line of the Southern Pacific Railroad Right-of-Way 100 feet wide; thence along said Southwesterly
line South 57°13’36” East, 163.17 feet; thence South 00°12’23” West 42.00 feet; thence South
01°24’36” West 54.00 feet; thence South 00°12’23” West, 62.53 feet to the True Point of Beginning
of this description; thence continuing South 00°12’23” West, 180.37 feet; thence South 89°58’44”
West, 136.25 feet to the Westerly line of said Northeast quarter; thence Northerly along said
Westerly line North 00°11’20” East, 180.37 feet; thence North 89°58’44” East 138.31 feet to the
True Point of Beginning.

Except the Westerly 15.00 feet of said land for roads, railroads and ditches, as reserved in the
Deed recorded in Book 934, Page 310 of Deeds.

Assessor’s Parcel Number: 7005-001-036 and 7005-001-037

EXHIBIT A-5

 

Loan No. WB13991

EXHIBIT A-6

REAL PROPERTY IN THE CITY OF TEMPE, COUNTY OF MARICOPA, STATE OF ARIZONA, DESCRIBED AS FOLLOWS:

Lot 26, PALO VERDE INDUSTRIAL PARK, according to Book 105 of Maps, page 31, records of Maricopa
County, Arizona.

EXHIBIT A-6

 

Loan No. WB13991

EXHIBIT D

LEASING CRITERIA

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Maximum	 	 	 	Minimum Initial Rental Rate	 	 
	**	 	Footage:	 	Square	 	and Annual Rent Increases	 	Minimum Term
	 
	 	 	 	 	 	 	 	 	 	 
	Goldenrod:

	 	 	5,000	 	 	 	 	$7.25/sf annually, net, 3% annual increases
	 	2 years
	 
	 	 	 	 	 	 	 	 	 	 
	Hanging Moss:

	 	 	6,000	 	 	 	 	$7.25/sf annually, net, 3% annual increases
	 	2 years
	 
	 	 	 	 	 	 	 	 	 	 
	Progress Way:

	 	 	6,000	 	 	 	 	$7.25/sf annually, net, 3% annual increases
	 	2 years
	 
	 	 	 	 	 	 	 	 	 	 
	Winter Garden:

	 	 	3,000	 	 	 	 	$7.25/sf annually, net, 3% annual increases
	 	2 years
	 
	 	 	 	 	 	 	 	 	 	 
	Shoemaker:

	 	 	5,000	 	 	 	 	$8.40/sf annually, net, 3% annual increases
	 	2 years
	 
	 	 	 	 	 	 	 	 	 	 
	South Industrial:

	 	 	2,500	 	 	 	 	$6.12/sf annually, net, 3% annual increases
	 	2 years

 

			
	**	 	Notwithstanding the above, lease renewal terms currently set forth in leases existing as of the
Closing Date are considered pre-approved

EXHIBIT D

 

Loan No. WB13991

STATE OF CALIFORNIA       ) 

                
            

                     )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

STATE OF CALIFORNIA       ) 

                                   
               )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

ACKNOWLEDGMENT

 

 

Loan No. WB13991

STATE OF CALIFORNIA        )

                                    
              )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

STATE OF CALIFORNIA       ) 

                                  
                )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

ACKNOWLEDGMENT

 

 

Loan No. WB13991

STATE OF CALIFORNIA       )

                                  
                )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

STATE OF CALIFORNIA       )

                                  
                )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

ACKNOWLEDGMENT

 

 

Loan No. WB13991

STATE OF CALIFORNIA       )

                                  
                )

COUNTY OF _____________ )

On ____________________, before me, ____________________, a Notary Public, personally
appeared ____________________ who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________

ACKNOWLEDGMENT

 

 

Loan No. WB13991

AMENDED AND RESTATED PROMISSORY NOTE SECURED BY DEED OF TRUST

			
	$15,360,000.00
	 	Date: August 3, 2011

	1.	 	PROMISE TO PAY. FOR VALUE RECEIVED, the undersigned COP-Monroe, LLC, a Florida
limited liability company (“Progress Way Borrower”), COP-Carter, LLC, a Florida limited
liability company (“Winter Garden Borrower”), COP-Hanging Moss, LLC, a Florida limited
liability company (“Hanging Moss Borrower”), COP-Goldenrod, LLC, a Florida limited liability
company
(“Goldenrod Borrower”, and collectively with Progress Way Borrower, Winter Garden Borrower
and Hanging Moss Borrower, “Original Borrower”), COP-South Industrial, LLC, a Delaware
limited liability company, and COP-Shoemaker, LLC, a Delaware limited liability company
(collectively with the Original Borrower, “Borrower”) promise(s) to pay to the order of WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as successor-by-merger to
Wachovia Bank, National Association, a national banking association (“Lender”), at the
Minneapolis Loan Center, 608 2nd Ave South, 11th Floor, Minneapolis, MN 55402, or at such
other place as may be designated in writing by Lender, the principal sum of FIFTEEN MILLION
THREE HUNDRED SIXTY THOUSAND AND NO/100THS DOLLARS ($15,360,000.00) or so much thereof as may
from time to time be owing hereunder by reason of advances by Lender to or for the benefit or
account of Borrower, with interest thereon, per annum, at the Effective Rate (as hereinafter
defined) calculated in accordance with the terms and provisions of the Interest Rate
Provisions Agreement attached to this note (“Note”) as Exhibit A (based on a 360-day
year and charged on the basis of actual days elapsed). All sums owing hereunder are payable
in lawful money of the United States of America, in immediately available funds without
offset, deduction or counterclaim of any kind. This Note amends, restates and replaces, in
its entirety, that certain Promissory Note dated as of November 13, 2007, executed by
Original Borrower to the order of Lender in the principal face amount of $22,420,500.00 (as
amended, the “Existing Note”). This Note is not intended to, nor shall it be construed to,
constitute a novation of the Existing Note or the obligations contained therein. All sums
previously paid under the Existing Note have been earned by and shall be retained by Lender.
All sums currently owing under the Existing Note shall be deemed to be transferred to and
owing under this Note.
	 
	2.	 	INTEREST; PRINCIPAL. Interest accrued on this Note shall be due and payable on the
1st Business Day of each month commencing with the first month after the date of this Note.
Notwithstanding anything to the contrary contained in this Note or the Interest Rate
Provisions Agreement attached to this Note as Exhibit A, in no event shall the interest rate
on the outstanding principal balance of this Note at any time be less than four and one-half
percent (4.50%) per annum based on a 360-day year and charged on the basis of actual days
elapsed (“Interest Rate Floor”). Notwithstanding the foregoing, if Borrower and Lender now or
hereafter enter into an interest rate swap transaction in connection with this Note, THEN, for
the duration of such interest rate swap transaction, the Interest Rate Floor shall not apply
to so much of the principal balance of this Note as is equal to the notional amount of such
interest rate swap transaction. On the 1st Business Day of each month commencing
with the first month after the date of this Note, Borrower shall make a principal payment to
Lender in the amount of $30,000.00 each.

DOCUMENTARY STAMP TAXES IN THE AMOUNT OF $53,760 HAVE BEEN PURCHASED AND AFFIXED TO THE

MEMORANDUM OF MODIFICATION AGREEMENT AMENDING MORTGAGE SECURING THIS NOTE

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Loan No. WB13991

	3.	 	MATURITY DATE. The outstanding principal balance of this Note, together with all
accrued and unpaid interest, shall be due and payable in full on February 13, 2012 (“Maturity
Date”), as such Maturity Date may be extended pursuant to the terms and conditions of Section
2.5 of that certain Assumption and Modification Agreement (Long Form) dated as of even date
herewith executed by Borrower and Lender (the “Assumption and Modification Agreement”).
Principal amounts outstanding hereunder, upon which repayment obligations exist and interest
accrues, shall be determined by the records of the Lender, which shall be deemed to be
conclusive in the absence of clear and convincing evidence to the contrary presented by
Borrower.
	 
	6.	 	SECURED BY DEED OF TRUST. This Note is secured by, among other things, the Deeds of
Trust (as defined in the Loan Agreement referenced below) and the other Loan Documents as
defined in that certain Loan Agreement dated as of November 13, 2007, executed by Original
Borrower and Lender as amended by that certain Extension Agreement dated as of November 13,
2009 executed by Original Borrower and Lender, that certain letter agreement dated as of
October 21, 2010 executed by Original Borrower and Lender, that certain letter agreement dated
as of February 23, 2011 executed by Original Borrower and Lender, that certain letter
agreement dated as of April 14, 2011 executed by Original Borrower and Lender, and the
Assumption and Modification Agreement (as the same may be further amended or restated from
time to time, the “Loan Agreement”). Capitalized terms used herein and not defined shall have
the meanings set froth in the Loan Agreement. Reference is made to the Loan Agreement for a
description of the terms and conditions upon which advances may be made under this Note and
repayment of the indebtedness evidenced by this Note may be accelerated.
	 
	7.	 	INTENTIONALLY DELETED.
	 
	8.	 	LATE CHARGE. If any interest or principal payment required hereunder is not received
by Lender (whether by direct debit or otherwise) on or before the 15th calendar day of the
month (regardless of whether the 15th day falls on a Saturday, Sunday or legal holiday) in
which it becomes due, Borrower shall pay, at Lender’s option, a late or collection charge
equal to 5% of the amount of such unpaid payment (“Late Charge”).
	 
	9.	 	PREPAYMENT. Borrower may prepay the principal amount outstanding under this Note and
accrued interest thereon, in whole or in part, at any time without charge. Partial prepayments
of principal shall be accompanied by accrued interest on the amount prepaid through the date
of prepayment and, if applicable, a One-Month LIBOR Rate Price Adjustment (as defined in
Exhibit A). Lender shall not be obligated to re-advance to Borrower any sums prepaid by
Borrower, whether prepaid voluntarily or involuntarily pursuant to the terms of any Loan
Document.
	 
	10.	 	INTENTIONALLY DELETED.
	 
	11.	 	ACCELERATION. If: (a) Borrower shall fail to pay when due any sums payable hereunder;
or (b) an Event of Default occurs under any Deed of Trust or under any obligation secured
thereby, or under any other Loan Document; THEN Lender may, at its sole option,
declare all sums owing under this Note immediately due and payable; provided,
however, that if any document related to this Note provides for automatic acceleration
of payment of sums owing hereunder, all sums owing hereunder shall be automatically due and
payable in accordance with the terms of that document.
	 
	12.	 	JOINT AND SEVERAL LIABILITY. If this Note is executed by more than 1 person or entity
as Borrower, the obligations of each such person or entity shall be joint and several. No
person or entity shall be a mere accommodation maker, but each shall be primarily and directly
liable hereunder. Section 12.28 of the Loan Agreement (the “Joint Borrower Provisions”) is by
this reference incorporated herein in its entirety.
	 
	13.	 	WAIVER. Except as otherwise provided, Borrower waives: presentment; demand; notice
of dishonor; notice of default or delinquency; notice of acceleration; notice of protest and
nonpayment; notice of costs, expenses or losses and interest thereon; notice of late charges;
and diligence in

-2-

 

Loan No. WB13991

	 	 	taking any action to collect any sums owing under this Note or in proceeding against any of
the rights or interests in or to properties securing payment of this Note.
	 
	14.	 	TIME OF THE ESSENCE. Time is of the essence with respect to every provision hereof.
	 
	15.	 	GOVERNING LAW. This Note shall be governed by, and construed and enforced in
accordance with, the laws of the state of Florida is located, except to the extent preempted
by federal laws.
	 
	16.	 	COMMERCIAL USE; MAXIMUM RATE PERMITTED BY LAW. Borrower hereby represents that this
loan is for commercial use and not for personal, family or household purposes. It is the
specific intent of the Borrower and Lender that this Note bear a lawful rate of interest, and
if any court of competent jurisdiction should determine that the rate herein provided for
exceeds that which is statutorily permitted for the type of transaction evidenced hereby, the
interest rate shall be reduced to the highest rate permitted by applicable law, with any
excess interest heretofore collected being applied against principal or, if such principal has
been fully repaid, returned to Borrower on demand.
	 
	17.	 	LENDER’S DAMAGES. Borrower recognizes that its default in making any payment as
provided herein or in any other Loan Document as agreed to be paid when due, or the occurrence
of any other Event of Default hereunder or under any other Loan Document, will require Lender
to incur additional expense in servicing and administering the Loan, in loss to Lender of the
use of the money due and in frustration to Lender in meeting its other financial and loan
commitments and that the damages caused thereby would be extremely difficult and impractical
to ascertain. Borrower agrees (a) that an amount equal to the Late Charge plus the accrual of
interest at the Default Rate (as defined in Exhibit A) is a reasonable estimate of the damage
to Lender in the event of a late payment, and (b) that the accrual of interest at the Default
Rate following any other Event of Default is a reasonable estimate of the damage to Lender in
the event of such other Event of Default, regardless of whether there has been an acceleration
of the loan evidenced hereby. Nothing in this Note shall be construed as an obligation on the
part of Lender to accept, at any time, less than the full amount then due hereunder, or as a
waiver or limitation of Lender’s right to compel prompt performance.
	 
	18.	 	WAIVER OF RIGHT TO TRIAL BY JURY. BORROWER HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THIS NOTE OR ANY
OTHER LOAN DOCUMENT, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION HEREOF
OR THEREOF OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF
BORROWER AND LENDER OR ANY OF THEM WITH RESPECT TO THIS NOTE OR ANY OTHER LOAN DOCUMENT (AS
NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE
WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND BORROWER HEREBY AGREES AND CONSENTS
THAT LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF BORROWER TO THE WAIVER OF ANY RIGHT BORROWER MIGHT
OTHERWISE HAVE TO TRIAL BY JURY.
	 
	19.	 	EXHIBITS. All exhibits, schedules or other items attached hereto are incorporated
into this Note by such attachment for all purposes.
	 
	20.	 	NOTICES. All notices or other communications required or permitted to be given
pursuant to this Note shall be given to the Borrower or Lender at the address and in the
manner provided for in the Loan Agreement, except as otherwise provided herein.

-3-

 

Loan No. WB13991

	21.	 	INTEGRATION. The Loan Documents contain or expressly incorporate by reference the
entire agreement of the parties with respect to the matters contemplated therein and supersede
all prior negotiations or agreements, written or oral. The Loan Documents shall not be
modified except by written instrument executed by all parties. Any reference to the Loan
Documents includes any amendments, renewals or extensions now or hereafter approved by Lender
in writing.

IN WITNESS WHEREOF, this Note has been executed as of the date first above written.

	 	 	 	 	 
	 	“Borrower”

COP-MONROE, LLC, a Florida limited liability company

 	 
	 	By:  	COP–ORL ONE, LLC, a Florida limited liability company,
 	 
	 	 	its Manager 	 
	 	 	 	 

					
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT,
 	 
	 	 	INC., a Maryland corporation, its general 	 
	 	 	partner	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	COP-CARTER, LLC, a Florida limited liability company

 	 
	 	By:  	COP–ORL ONE, LLC, a Florida limited liability company,
 	 
	 	 	its Manager 	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT,
 	 
	 	 	INC., a Maryland corporation, its general 	 
	 	 	partner 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-4-

 

Loan No. WB13991

	 	 	 	 	 
	 	COP-HANGING MOSS, LLC, a Florida limited liability
company

 	 
	 	By:  	COP-ORL ONE, LLC, a Florida limited liability company, its Manager
 	 
	 	 	 	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 
	 	 	 	 

					
	 	
 	 
	 	By:  	CORNERSTONE
CORE PROPERTIES REIT, INC., a Maryland corporation, its general partner
 	 
	 	 	 	 

					
	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-5-

 

Loan No. WB13991

	 	 	 	 	 
	 	COP-GOLDENROD, LLC, a Florida limited liability company

 	 
	 	By:  	COP—ORL ONE, LLC, a Florida limited liability company, its Manager
 	 
	 	 	 	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation, its general partner
 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	COP-SHOEMAKER, LLC,

a Delaware limited liability company

 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation, its Manager
 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	COP-SOUTH INDUSTRIAL, LLC,

a Delaware limited liability company

 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT, INC., a Maryland corporation, its Manager
 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-6-

 

Loan No. WB13991

EXHIBIT A

INTEREST RATE PROVISIONS AGREEMENT

Exhibit A to Amended and Restated Promissory Note Secured by Deed of Trust (“Note”), dated
August 3, 2011, made by COP-Monroe, LLC, a Florida limited liability company (“Progress Way
Borrower”), COP-Carter, LLC, a Florida limited liability company (“Winter Garden Borrower”),
COP-Hanging Moss, LLC, a Florida limited liability company (“Hanging Moss Borrower”),
COP-Goldenrod, LLC, a Florida limited liability company (“Goldenrod Borrower”, and collectively
with Progress Way Borrower, Winter Garden Borrower and Hanging Moss Borrower, “Original Borrower”),
COP-South Industrial, LLC, a Delaware limited liability company, and COP-Shoemaker, LLC, a Delaware
limited liability company, as Borrower, to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION, a
national banking association, as successor-by-merger to Wachovia Bank, National Association, a
national banking association, as Lender.

R E C I T A L S

Borrower understands that absent the terms and conditions hereof, it would be extremely difficult
to calculate Lender’s additional costs, expenses, and damages in the event of a Default or
prepayment by Borrower hereunder. Given the above, Borrower agrees that the provisions herein
(including, without limitation, the One-Month LIBO Rate Price Adjustment defined below) provide for
a reasonable and fair method for Lender to recover its additional costs, expenses and damages in
the event of a Default or prepayment by Borrower.

	1.	 	RATES AND TERMS DEFINED. Various rates and terms not otherwise defined herein are
defined and described as follows:
	 
	 	 	“Business Day” is a day of the week (but not a Saturday, Sunday or holiday) on which the
offices of Lender are open to the public for carrying on substantially all of Lender’s business
functions.
	 
	 	 	“Default Rate” is a rate of interest per annum five percent (5%) in excess of the applicable
Effective Rate in effect from time to time.
	 
	 	 	“Effective Rate” is the rate of interest calculated in accordance with Section 2 below.
	 
	 	 	“Federal Funds Rate” is, for any period, a fluctuating interest rate per annum equal for each
day during such period to the weighted average of the rates on overnight Federal Funds transactions
with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for such day on such transactions received by Lender from three
Federal Funds brokers of recognized standing selected by Lender.
	 
	 	 	“Loan Agreement” is that certain Loan Agreement dated as of October 13, 2007 executed by
Original Borrower and Lender, as amended by that certain Extension Agreement dated as of November
13, 2009 executed by Original Borrower and Lender, that certain letter agreement dated as of
October 21, 2010 executed by Original Borrower and Lender, that certain letter agreement dated as
of February 23, 2011 executed by Original Borrower and Lender, that certain letter agreement dated
as of April 14, 2011 executed by Original Borrower and Lender, and that certain Assumption and
Modification Agreement (Long Form) dated as of even date herewith executed by Borrower and Lender.
	 
	 	 	“Loan Documents” are the documents defined as such in the Loan Agreement.
	 
	 	 	“One-Month LIBO Rate” is the rate of interest, rounded upward to the nearest whole multiple of
one-hundredth of one percent (.01%), equal to the sum of: (a) three percent (3.00%) plus (b) the

Exhibit A — 1

 

Loan No. WB13991

	 	 	rate of interest, rounded upward to the nearest whole multiple of one-sixteenth of
one percent (.0625%), that is quoted by Lender from time to time as the London InterBank
Offered Rate for deposits in U.S. Dollars, at approximately 9:00 a.m. (California time),
for a period of 1 month (“One-Month Rate”), which rate is divided by one (1.00) minus the
Reserve Percentage.

	 	 	 	 	 	 	 

	 

	 	+	 	 	 	 
	One-Month LIBO Rate = spread %

	 	 	 	One-Month Rate
 

(1 - Reserve Percentage)
	 	 

	 	 	“One-Month LIBO Rate Period” is the period of 1 month from the 1st Business Day of
a calendar month to, but not including, the 1st Business Day of the next calendar month;
provided, however, no One-Month LIBO Rate Period shall extend beyond the Maturity Date.
	 
	 	 	“One-Month LIBO Rate Portion” is the then outstanding principal balance of this Note which is
subject to a One-Month LIBO Rate. In the event Borrower is subject to a principal amortization
schedule under the terms and conditions of the Loan Documents, the One-Month LIBO Rate Portion
shall in no event exceed the maximum outstanding principal balance which will be permissible on the
last day of the One-Month LIBO Rate Period.
	 
	 	 	“One-Month Rate” is the rate of interest defined in the definition of “One-Month LIBO Rate”
above.
	 
	 	 	“Regulatory Costs” are, collectively, future, supplemental, emergency or other changes in
Reserve Percentages, assessment rates imposed by the FDIC, or similar requirements or costs imposed
by any domestic or foreign governmental authority and related in any manner to a One-Month LIBO
Rate.
	 
	 	 	“Replacement Rate” is, for any day, a fluctuating rate of interest equal to three percent
(3.00%) plus the Federal Funds Rate plus 1.50%.
	 
	 	 	“Reserve Percentage” is at any time the percentage announced within Lender as the reserve
percentage under Regulation D for loans and obligations making reference to the One-Month
LIBO Rate. The Reserve Percentage shall be based on Regulation D or other regulations from
time to time in effect concerning reserves for Eurocurrency Liabilities as defined in
Regulation D from related institutions as though Lender were in a net borrowing position,
as promulgated by the Board of Governors of the Federal Reserve System, or its successor.
	 
	 	 	“Taxes” are, collectively, all withholdings, interest equalization taxes, stamp taxes or other
taxes (except income and franchise taxes) imposed by any domestic or foreign governmental authority
and related in any manner to a One-Month LIBO Rate.
	 
	2.	 	EFFECTIVE RATE. Provided no Event of Default exists under this Note or under the
Loan Agreement or under any other Loan Document, the “Effective Rate” upon which interest
shall be calculated for this Note shall be the following:

	 	2.1	 	Initial Disbursement; Subsequent Disbursements During Any Calendar Month. For
the initial disbursement of principal under this Note, and for any subsequent disbursements
of principal during any calendar month, the Effective Rate on such principal amount shall
be the One-Month LIBO Rate on the date of disbursement as determined by
Lender. Such Effective Rate shall apply to such principal amount from the date of
disbursement through and including the date immediately preceding the 1st
Business Day of the next calendar month. On the 1st Business Day of the next
calendar month, any principal disbursed during the prior calendar month shall be added to
(or

Exhibit A — 2

 

Loan No. WB13991

	 	become)	 	the One-Month LIBO Rate Portion for purposes of calculation of the
Effective Rate under Section 2.2 below.
	 
	 	2.2	 	Monthly Reset of One-Month LIBO Rate. Commencing with the 1st
Business Day of the first calendar month after the initial disbursement of principal under
this Note, and continuing thereafter on the 1st Business Day of each succeeding
calendar month, the Effective Rate on the outstanding One-Month LIBO Rate Portion under this
Note (i.e., all outstanding principal on such 1st Business Day) shall be reset to
the One-Month LIBO Rate, as determined by Lender on each such 1st Business Day.
	 
	 	2.3	 	Intentionally Deleted.
	 
	 	2.4	 	If One-Month LIBO Rate Becomes Unavailable. In the event the One-Month LIBO
Rate, for any reason, should become prohibited or unavailable to Lender, or, if in Lender’s
good faith judgment, it is not possible or practical for Lender to set a One-Month LIBO
Rate, THEN, the Effective Rate shall be the Replacement Rate.
	 
	 	2.5.	 	Post Maturity; Default Rate. From and after the Maturity Date or such earlier
date on which an Event of Default exists under the Loan Agreement or any other Loan
Document, then at the option of Lender, all sums owing on this Note shall bear interest at a
rate per annum equal to the Event of Default Rate.

	3.	 	TAXES, REGULATORY COSTS AND RESERVE PERCENTAGES. Upon Lender’s demand, Borrower
shall pay to Lender, in addition to all other amounts which may be, or become, due and payable
under this Note and Loan Documents, any and all Taxes and Regulatory Costs, to the extent they
are not internalized by calculation of an Effective Rate. Further, at Lender’s option, the
Effective Rate shall be automatically adjusted by adjusting the Reserve Percentage, as
determined by Lender in its prudent banking judgment, from the date of imposition (or
subsequent date selected by Lender) of any such Regulatory Costs. Lender shall give Borrower
notice of any Taxes and Regulatory Costs as soon as practicable after their occurrence, but
Borrower shall be liable for any Taxes and Regulatory Costs regardless of whether or when
notice is so given.
	 
	4.	 	ONE-MONTH LIBO RATE PRICE ADJUSTMENT. Borrower acknowledges that prepayment or
acceleration of a One-Month LIBO Rate Portion during a One-Month LIBO Rate Period shall result
in Lender’s incurring additional costs, expenses and/or liabilities and that it is extremely
difficult and impractical to ascertain the extent of such costs, expenses and/or liabilities.
Therefore, on the date a One-Month LIBO Rate Portion is prepaid or the date all sums payable
hereunder become due and payable, by acceleration or otherwise (“Price Adjustment Date”),
Borrower will pay Lender (in addition to all other sums then owing to Lender) an amount
(“One-Month LIBO Rate Price Adjustment”) equal to the then present value of (a) the amount of
interest that would have accrued on the One-Month LIBO Rate Portion for the remainder of the
One-Month LIBO Rate Period at the One-Month LIBO Rate set on the 1st Business Day
of the month in which such amount is prepaid or becomes due, less (b) the amount of interest
that would accrue on the same One-Month LIBO Rate Portion for the same period if the One-Month
LIBO Rate were set on the Price Adjustment Date at the One-Month LIBO Rate in effect on the
Price Adjustment Date. The present value shall be calculated by using as a discount rate the
One-Month Rate quoted on the Price Adjustment Date.
	 
	 	 	By initialing this provision where indicated below, Borrower confirms that Lender’s agreement
to make the loan evidenced by this Note at the interest rates and on the other terms set forth
herein and in the other Loan Documents constitutes adequate and valuable consideration, given
individual weight by Borrower, for this agreement.

          BORROWER INITIALS:
                
                
             

Exhibit A — 3

 

Loan No. WB13991

	5.	 	PURCHASE, SALE AND MATCHING OF FUNDS. Borrower understands, agrees and
acknowledges the following: (a) Lender has no obligation to purchase, sell and/or match funds
in connection with the use of a One-Month Rate as a basis for calculating an Effective Rate or
a One-Month LIBO Rate Price Adjustment; (b) a One-Month Rate is used merely as a reference in
determining an Effective Rate or a One-Month LIBO Rate Price Adjustment; and (c) Borrower has
accepted a One-Month Rate as a reasonable and fair basis for calculating an Effective Rate or
a One-Month LIBO Rate Price Adjustment. Borrower further agrees to pay the One-Month LIBO Rate
Price Adjustment, Taxes and Regulatory Costs, if any, whether or not Lender elects to
purchase, sell and/or match funds.
	 
	6.	 	MISCELLANEOUS. As used in this Exhibit, the plural shall mean the singular and the
singular shall mean the plural as the context requires.

This Exhibit is executed concurrently with and as part of the Note referred to and described first
above.

“BORROWER”

COP-MONROE, LLC, a Florida limited liability company

	 	 	 	 	 
	 	 	 
	 	By:  	COP—ORL ONE, LLC, a Florida limited liability
 	 
	 	 	company, its Manager 	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES
 	 
	 	 	REIT, INC., a Maryland corporation, its 	 
	 	 	general partner 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	COP-CARTER, LLC, a Florida limited liability company

 	 
	 	By:  	COP—ORL ONE, LLC, a Florida limited liability
 	 
	 	 	company, its Manager 	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES
 	 
	 	 	REIT, INC., a Maryland corporation, its 	 
	 	 	general partner 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit A — 4

 

Loan No. WB13991

	 	 	 	 	 
	 	COP-HANGING MOSS, LLC, a Florida limited liability

company

 	 
	 	By:  	COP—ORL ONE, LLC, a Florida limited liability
 	 
	 	 	company, its Manager             	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES
 	 
	 	 	REIT, INC., a Maryland corporation, its  	 
	 	 	general partner 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	COP-GOLDENROD, LLC, a Florida limited liability 

company

 	 
	 	By:  	COP—ORL ONE, LLC, a Florida limited liability
 	 
	 	 	company, its Manager 	 

					
	 	
 	 
	 	By:  	Cornerstone Operating Partnership, L.P., a
 	 
	 	 	Delaware limited partnership, its Manager 	 

					
	 	
 	 
	 	By:  	CORNERSTONE CORE PROPERTIES
 	 
	 	 	REIT, INC., a Maryland corporation, its 	 
	 	 	general partner 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	COP-SHOEMAKER, LLC, 

a Delaware limited liability company

 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT, INC., a
 	 
	 	 	Maryland corporation, its Manager       	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit A — 5

 

Loan No. WB13991

	 	 	 	 	 
	 	COP-SOUTH INDUSTRIAL, LLC, 

a Delaware limited liability company 

 	 
	 	By:  	CORNERSTONE CORE PROPERTIES REIT, INC.,
 	 
	 	 	a Maryland corporation, its Manager 	 

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit A — 6

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