Document:

EX-10.5

	 	 	 
	RECORDING REQUESTED BY	 	 
	AND WHEN RECORDED MAIL TO:

	 	

	Sheppard, Mullin, Richter & Hampton LLP

650 Town Center Drive, 4th Floor

Costa Mesa, California 92626-1993

Attn: Steven L. Satz, Esquire

	 	

	 

	 	

	
 
	 	THIS SPACE ABOVE FOR RECORDER’S USE

MORTGAGE WITH ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING (LEASEHOLD)

(The promissory note secured hereby provided for a fluctuating interest rate)

THIS MORTGAGE (WITH ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE
FILING) is made as of December 23, 2010 by G&E HC REIT II LAWTON MOB PORTFOLIO, LLC, a Delaware
limited liability company (“Grantor”), to U.S. BANK NATIONAL ASSOCIATION, a national
banking association (“Mortgagee”). The respective addresses of Grantor and Mortgagee are
set forth in Section 5.5.

THIS MORTGAGE is given, among other things, for the purpose of securing a loan (the
"Loan”) from Mortgagee, as mortgagee, to Grantor, as grantor, the proceeds of which are to
be used to pay, among other things, a portion of the costs of the acquisition of certain interests
in real property and improvements thereon located in County of Comanche, State of Oklahoma, which
real property is more particularly described in Exhibit A attached hereto and by this
reference incorporated herein (the “Land”).

FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness herein, the receipt of which
is hereby acknowledged, Grantor, as mortgagor, hereby irrevocably grants, bargains, sells,
transfers, conveys and assigns to Mortgagee, WITH POWER OF SALE AND RIGHT OF ENTRY AND POSSESSION,
for the benefit and security of Mortgagee, under and subject to the terms and conditions
hereinafter set forth, all of Grantor’s present and future right, title and interest in and to the
Land, including without limitation all of Grantor’s right, title and interest in, to and under the
ground leases described in Exhibit B attached hereto and made a part herein, each of which
cover part of the Land (collectively, the “Ground Lease”);

TOGETHER WITH all of Grantor’s present and future right, title and interest in any and all
buildings and improvements now or hereafter erected on the Land including, without limitation,
Grantor’s fee estate in said buildings and improvements and also including, without limitation, all
of the fixtures, attachments, appliances, equipment, machinery, and other articles attached to said
buildings and improvements (the “Improvements”), all of which are deemed and construed to
be a part of the realty (the Improvements and Grantor’s interest in the Land are collectively
referred to herein as the “Premises”);

TOGETHER WITH all Leases (as defined in Section 2.1 below) and all Rents (as defined
in Section 2.1 below);

TOGETHER WITH all interests, estates or other claims, both in law and in equity, which Grantor
now has or may hereafter acquire in the Premises;

TOGETHER WITH all right, title, and interest of Grantor in (a) the Ground Lease, (b) the
property and interests in property described on Exhibit C attached hereto and incorporated
herein by reference, (c) all other personal property now or hereafter owned by Grantor that is now
or hereafter located on or used in connection with the Premises, (d) all other rights and interests
of Grantor now or hereafter held in personal property that is now or hereafter located on or used
in connection with the Premises, and (e) all proceeds thereof (such personal property and proceeds
are collectively referred to in this Mortgage as the “Personal Property”);

TOGETHER WITH all easements, rights-of-way and rights now owned or hereafter acquired by
Grantor used in connection with the Premises or as a means of access to the Premises, including,
without limitation, all easement rights arising by virtue of the Declarations of Reciprocal
Easements described in Exhibit D attached hereto and incorporated herein by this reference,
and also including, without limitation, all rights pursuant to any trackage agreement and all
rights to the nonexclusive use of common drive entries, and all tenements, hereditaments and
appurtenances thereof and thereto, and all water and water rights and shares of stock evidencing
the same;

TOGETHER WITH all leasehold estate, right, title and interest of Grantor in and to any and all
leases, subleases, licenses, franchises and other agreements covering the Premises or any portion
thereof now or hereafter existing or entered into, and any and all right, title and interest of
Grantor thereunder including, without limitation, any and all cash or security deposits, advance
rentals, and deposits or payments of similar nature;

TOGETHER WITH all right, title and interest now owned or hereafter acquired by Grantor in and
to any greater estate in the Premises;

TOGETHER WITH all right, title and interest of Grantor, now owned or hereafter acquired, in
and to any land lying within the right-of-way of any street, open or proposed, adjoining the
Premises, and any and all sidewalks, alleys and strips and gores of land adjacent to or used in
connection with the Premises;

TOGETHER WITH all the estate, interest, right, title, other claim or demand, both in law and
in equity, including claims or demands with respect to the proceeds of insurance in effect with
respect thereto, which Grantor now has or may hereafter acquire in the Premises, and any and all
awards made for the taking by eminent domain, or by any proceeding of purchase in lieu thereof, of
the whole or any part of the Mortgaged Property (as hereinafter defined), which Grantor has now or
may hereafter acquire, including, without limitation, any awards resulting from a change of grade
of streets and awards for severance damages.

The entire estate, property and interest hereby mortgaged to Mortgagee may hereafter be
collectively referred to as the “Mortgaged Property.”

FOR THE PURPOSE OF SECURING:

(a) payment of all principal, interest, prepayment fees and other charges, late charges and
loan fees, and all other sums owing under or evidenced by that certain Secured Promissory Note (the
"Note”) of even date herewith in the principal amount of $7,300,000.00, executed and
delivered by Grantor to the order of Mortgagee pursuant to that certain Loan Agreement of even date
herewith between Grantor and Mortgagee (the “Loan Agreement”), which Note and Loan
Agreement and any and all modifications, extensions, renewals and replacements thereof are by this
reference hereby made a part hereof;

(b) payment of all sums advanced by Mortgagee to protect the Mortgaged Property, with interest
thereon from the date of the advance at the Default Rate (as defined in the Note);

(c) payment of all other sums, with interest thereon, which may hereafter be loaned to
Grantor, or its successors or assigns, by Mortgagee, or its successors or assigns when evidenced by
a promissory note or notes executed by Grantor reciting that they are secured by this Mortgage;

(d) performance of every obligation, covenant or agreement of Grantor contained herein and in
the Loan Agreement, and all supplements, amendments and modifications thereto and all extensions
and renewals thereof;

(e) performance of every obligation, covenant and agreement of Grantor contained in any
agreement now or hereafter executed by Grantor which recites that the obligations thereunder are
secured by this Mortgage;

(f) compliance with and performance of each and every material provision of any declaration of
covenants, conditions and restrictions pertaining to the Mortgaged Property or any portion thereof;
and

(g) all present and future debts, obligations and liabilities of Grantor (or any Affiliate of
Grantor) under or relating to any and all present and future Swap Transactions and Swap Contracts
which Grantor (or any Affiliate of Grantor) elects to enter into with Mortgagee or any Affiliate of
Mortgagee in connection with or relating to the Loan, heretofore, now, or hereafter made, incurred,
or created, whether voluntary or involuntary and however arising, whether due or not due, absolute
or contingent, liquidated or unliquidated, determined or undetermined.

Notwithstanding the above or anything in this Mortgage to the contrary, however, this Mortgage
shall not secure (i) Grantor’s obligations under the Unsecured Environmental Indemnity (as defined
in the Loan Agreement), (ii) any third party guaranty of the Loan or Grantor’s obligations under
the Loan Documents, or (iii) any other Loan Document that specifically states that it is not
secured by this Mortgage. All initially capitalized terms used herein without definition are as
defined in the Loan Agreement. The rate of interest of the obligation secured hereunder may vary
from time to time.

TO PROTECT THE SECURITY OF THIS MORTGAGE, GRANTOR HEREBY COVENANTS AND AGREES AS FOLLOWS:

ARTICLE I

COVENANTS AND AGREEMENTS OF GRANTOR

1.1 Payment of Secured Obligations. Grantor shall pay when due the principal of and the
interest on the indebtedness evidenced by the Note; all charges, fees and other sums as provided in
the Loan Documents (including, without limitation, any prepayment fee); the principal of and
interest on any future advances secured by this Mortgage; and the principal of and interest on any
other indebtedness secured by this Mortgage.

1.2 Maintenance, Repair, Alterations, and Compliance with Laws. Grantor shall keep the
Mortgaged Property to be kept in good condition and repair; Grantor shall not remove, demolish or
substantially alter any of the Improvements (subject to the rights of tenants under existing tenant
leases) except upon the prior written consent of Mortgagee; Grantor shall complete or cause to be
completed promptly and in a good and workmanlike manner any Improvement which may be now or
hereafter constructed on the Land and promptly restore in like manner any portion of the
Improvements which may be damaged or destroyed thereon from any cause whatsoever, and pay or cause
to be paid when due all claims for labor performed and materials furnished therefor; Grantor shall
comply with all applicable laws, ordinances, regulations, covenants, conditions and restrictions
now or hereafter affecting the Mortgaged Property or any part thereof or requiring any alterations
or improvements, and the requirements of insurance companies and any bureau or agency which
establishes standards of insurability; Grantor shall not commit or permit any waste or
deterioration of the Mortgaged Property, and shall keep and maintain or cause to be kept and
maintained abutting grounds, sidewalks, roads, parking and landscape areas in good and neat order
and repair; Grantor shall not commit, suffer or permit any act to be done in or upon the Mortgaged
Property in violation of any law, ordinance or regulation; and Grantor shall do or cause to be done
all other acts which from the character or use of the Mortgaged Property may be reasonably
necessary to maintain and preserve its value. Grantor shall not apply for, willingly suffer or
permit any change in zoning, subdivision, or land use regulations affecting the Premises without
the consent of Mortgagee. Grantor shall not drill or extract or enter into any lease for the
drilling for or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind
or character on or from the Mortgaged Property or any part thereof without first obtaining
Mortgagee’s written consent.

1.3 Required Insurance. Grantor shall at all times provide, maintain and keep in force or
cause to be provided, maintained and kept in force, at no expense to Mortgagee, all policies of
insurance that are required pursuant to the Loan Agreement or other Loan Documents, or that are
otherwise reasonably required by Mortgagee. The insurers, coverages, endorsements, certificates,
liability limits and all other matters relating to such insurance policies shall be subject to the
requirements set forth in Exhibit “B” to the Loan Agreement which is incorporated herein by this
reference.

1.4 Delivery of Policies, Payment of Premiums.

(a) At Mortgagee’s option all policies of insurance must either have attached thereto a
Mortgagee’s loss payable endorsement for the benefit of Mortgagee in form satisfactory to
Mortgagee or must name Mortgagee as an additional insured (in each case, in accordance with
the requirements of the Loan Agreement). At Mortgagee’s option, Grantor shall furnish
Mortgagee with an original of all policies of insurance required under Section 1.3
above or a certificate of insurance for each required policy setting forth the coverage, the
limits of liability, the name of the carrier, the policy number and the period of coverage
(and subject to any further requirements set forth in the Loan Agreement). If Mortgagee
consents, Grantor may provide any of the required insurance through blanket policies carried
by Grantor and covering more than one location, or by policies procured by a party holding
under Grantor; provided, however, all such policies must be in form and substance and issued
by companies reasonably satisfactory to Mortgagee. At least thirty (30) days prior to the
expiration of each required policy, Grantor shall deliver to Mortgagee evidence satisfactory
to Mortgagee of the payment of premium and the renewal or replacement of such policy
continuing insurance in the form required by this Mortgage. All such policies must contain
a provision that, notwithstanding any contrary agreement between Grantor and an insurance
company, such policies will not be cancelled, allowed to lapse without renewal, surrender,
reduced in scope or limits of coverage or otherwise materially amended, without at least
thirty (30) days’ prior written notice to Mortgagee.

(b) In the event Grantor fails to provide, maintain, keep in force or deliver to
Mortgagee the policies of insurance required by this Mortgage or by any Loan Document,
Mortgagee may (but has no obligation to) procure such insurance or single-interest insurance
for such risks covering Mortgagee’s interest, and Grantor will pay all premiums thereon
promptly upon demand by Mortgagee, and until such payment is made by Grantor, the amount
advanced by Mortgagee with respect to all such premiums will bear interest at the Default
Rate. After the occurrence of an Event of Default (as defined below) (whether or not such
Event of Default is subsequently cured), upon request by Mortgagee, Grantor shall deposit
with Mortgagee an initial cash reserve in an amount equal to one-half (1/2) of the estimated
aggregate annual insurance premiums on all policies of insurance required by this Mortgage
and thereafter continue to deposit with Mortgagee, in monthly installments, an amount equal
to one-twelfth (1/12) of the estimated aggregate annual insurance premiums on all policies
of insurance required by this Mortgage. In such event Grantor further agrees to cause all
bills, statements or other documents relating to the foregoing insurance premiums to be sent
or mailed directly to Mortgagee. Upon receipt of such bills, statements or other documents
evidencing that a premium for a required policy is then payable, and providing Grantor has
deposited sufficient funds with Mortgagee pursuant to this Section 1.4, Mortgagee
shall timely pay such amounts as may be due thereunder out of the funds so deposited with
Mortgagee. If at any time and for any reason the funds deposited with Mortgagee are or will
be insufficient to pay such amounts as may be then or subsequently due, Mortgagee shall
notify Grantor and Grantor shall immediately deposit an amount equal to such deficiency with
Mortgagee. Notwithstanding the foregoing, nothing contained herein will cause Mortgagee to
be obligated to pay any amounts in excess of the amount of funds deposited with Mortgagee
pursuant to this Section 1.4, nor will anything contained herein modify the
obligation of Grantor set forth in Section 1.3 hereof to maintain and keep such
insurance in force at all times. Mortgagee may commingle said reserve with its own funds
and Grantor will be entitled to no interest thereon. Mortgagee shall pay such charges for
insurance when the amount on deposit with Mortgagee is sufficient to pay such charges and
Lender has received a bill for such charges.

1.5 Casualties; Insurance Proceeds. Grantor shall give prompt written notice to Mortgagee
after the occurrence of any casualty to or in connection with the Mortgaged Property or any part
thereof, whether or not covered by insurance. In the event of such casualty, all proceeds of
insurance must be payable to Mortgagee, and Grantor hereby authorizes and directs any affected
insurance company to make payment of such proceeds directly to Mortgagee. If Grantor receives any
proceeds of insurance resulting from such casualty, Grantor shall promptly pay over such proceeds
to Mortgagee. Mortgagee is hereby authorized and empowered by Grantor to settle, adjust or
compromise any and all claims for loss, damage or destruction under any policy or policies of
insurance. In the event of any damage or destruction of the Premises, Mortgagee shall apply all
loss proceeds remaining after deductions of all expenses of collection and settlement thereof,
including, without limitation, reasonable attorneys’ and adjustors’ fees and expenses, to the
restoration of the Improvements but only as repairs or replacements are effected and continuing
expenses become due and payable; provided that the following conditions are met: (a) no Event of
Default exists; (b) the Loan is in Balance (taking into account all costs of reconstruction and the
amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue
under the Note, and any additional funds deposited by Grantor with Mortgagee to pay for such costs
of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or
destruction can be repaired and that the damaged portion of the Improvements can be completed
according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental
authorities have approved the final plans and specifications for reconstruction of the damaged
portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged
portion of the Improvements, in its sole discretion, the budget, the construction schedule and the
construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the
reconstruction work is completed, the value of the Project will not be less than the original
appraised value of the Project, as approved by Mortgagee. If any one or more of such conditions
set forth herein have not been met, Mortgagee will not be obligated to make any further
disbursements pursuant to the Loan Agreement, and Mortgagee shall apply all loss proceeds, after
deductions as herein provided, to the repayment of the outstanding balance of the Note, together
with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the
outstanding balance may not be due and payable. Nothing herein contained will be deemed to excuse
Grantor from repairing or maintaining the Mortgaged Property as provided in Section 1.2
hereof or restoring all damage or destruction to the Mortgaged Property, regardless of whether or
not there are insurance proceeds available to Grantor or whether any such proceeds are sufficient
in amount (provided Mortgagee makes such proceeds available to Grantor for such purpose), and the
application or release by Mortgagee of any insurance proceeds will not cure or waive any default or
notice of default under this Mortgage or invalidate any act done pursuant to such notice.

1.6 Assignment of Policies Upon Foreclosure. In the event of foreclosure of this Mortgage or
other transfer of title or assignment of the Mortgaged Property in extinguishment, in whole or in
part, of the debt secured hereby, all right, title and interest of Grantor in and to all policies
of insurance required by Section 1.3 will inure to the benefit of and pass to the successor
in interest to Grantor or the purchaser or grantee of the Mortgaged Property.

1.7 Indemnification; Subrogation; Waiver of Offset.

(a) If Mortgagee is made a party to any litigation concerning the Note, this Mortgage,
any of the Loan Documents, the Mortgaged Property or any part thereof or interest therein,
or the occupancy of the Mortgaged Property by Grantor, then Grantor shall indemnify, defend
and hold Mortgagee harmless from all liability by reason of said litigation, including
reasonable attorneys’ fees and third party expenses actually incurred by Mortgagee as a
result of any such litigation, whether or not any such litigation is prosecuted to judgment.
However, Grantor will not be obligated to indemnify, defend and hold Mortgagee harmless
from any claims which arise solely out of the gross negligence or willful misconduct of
Mortgagee. Mortgagee may employ an attorney or attorneys to protect its rights hereunder,
and in the event of such employment following any breach by Grantor, Grantor shall pay
Mortgagee reasonable attorneys’ fees and third party expenses actually incurred by
Mortgagee, whether or not an action is actually commenced against Grantor by reason of its
breach. This Section 1.7 will not apply to any matters covered by the Unsecured
Environmental Indemnity.

(b) Grantor waives any and all right to claim or recover against Mortgagee, its
officers, employees, agents and representatives, for loss of or damage to Grantor, the
Mortgaged Property, Grantor’s property or the property of others under Grantor’s control
from any cause insured against or required to be insured against by the provisions of this
Mortgage.

(c) Except as otherwise provided herein and/or in any other Loan Documents, all sums
payable by Grantor pursuant to this Mortgage must be paid without notice, demand,
counterclaim, setoff, deduction or defense and without abatement, suspension, deferment,
diminution or reduction, and the obligations and liabilities of Grantor hereunder will in no
way be released, discharged or otherwise affected by reason of: (i) any damage to or
destruction of or any condemnation or similar taking of the Mortgaged Property or any part
thereof; (ii) any restriction or prevention of or interference by any third party with any
use of the Mortgaged Property or any part thereof; (iii) any title defect or encumbrance or
any eviction from the Premises or any part thereof by title paramount or otherwise; (iv) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or
other like proceeding relating to Mortgagee, or any action taken with respect to this
Mortgage by any trustee or receiver of Mortgagee, or by any court, in any such proceeding;
(v) any claim which Grantor has or might have against Mortgagee; (vi) any default or failure
on the part of Mortgagee to perform or comply with any of the terms hereof or of any other
agreement with Grantor; or (vii) any other occurrence whatsoever, whether similar or
dissimilar to the foregoing; whether or not Grantor has notice or knowledge of any of the
foregoing. Except as expressly provided herein and/or in any other Loan Document, Grantor
waives all rights now or hereafter conferred by statute or otherwise to any abatement,
suspension, deferment, diminution or reduction of any sum secured hereby and payable by
Grantor.

1.8 Taxes and Impositions.

(a) Grantor shall pay, or cause to be paid prior to delinquency, all real property
taxes and assessments, general and special, and all other taxes and assessments of any kind
or nature whatsoever, including, without limitation, nongovernmental levies or assessments
such as maintenance charges, levies or charges resulting from covenants, conditions and
restrictions affecting the Mortgaged Property, which are assessed or imposed upon the
Mortgaged Property, or become due and payable, and which create, may create or appear to
create a lien upon the Mortgaged Property, or any part thereof, or upon any person,
property, equipment or other facility used in the operation or maintenance thereof (all the
above collectively hereinafter referred to as “Impositions”); provided, however,
that if, by law any such Imposition is payable, or may at the option of the taxpayer be
paid, in installments, Grantor may pay the same or cause it to be paid, together with any
accrued interest on the unpaid balance of such Imposition, in installments before any fine,
penalty, interest or cost may be added thereto for the nonpayment of any such installment
and interest.

(b) If at any time after the date hereof there is assessed or imposed (i) a tax or
assessment on the Mortgaged Property in lieu of or in addition to the Impositions payable by
Grantor pursuant to Section 1.8(a), or (ii) a license fee, tax or assessment imposed
on Mortgagee and measured by or based in whole or in part upon the amount of the outstanding
obligations secured hereby, then all such taxes, assessments or fees will be deemed to be
included within the term “Impositions” as defined in Section 1.8(a) and Grantor
shall pay and discharge the same as herein provided with respect to the payment of
Impositions. If Grantor fails to pay or cause to be paid such Impositions prior to
delinquency or if Grantor is prohibited by law from paying such Impositions, Mortgagee may
at its option declare all obligations secured hereby together with all accrued interest
thereon, immediately due and payable. Anything to the contrary herein notwithstanding,
Grantor will have no obligation to pay any franchise, estate, inheritance, income, excess
profits or similar tax levied on Mortgagee or on the obligations secured hereby.

(c) Subject to the provisions of Section 1.8(d) and upon request by Mortgagee,
Grantor shall deliver to Mortgagee before any such Imposition is due and payable official
receipts of the appropriate taxing authority, or other proof reasonably satisfactory to
Mortgagee, evidencing the payment thereof.

(d) Grantor has the right before any delinquency occurs to contest or object to the
amount or validity of any such Imposition by appropriate proceedings, but this will not be
deemed or construed in any way as relieving, modifying or extending Grantor’s covenant to
pay any such Imposition at the time and in the manner provided in this Section 1.8,
unless Grantor has given prior written notice to Mortgagee of Grantor’s intent to so contest
or object to an Imposition, and unless, at Mortgagee’s sole option, (i) Grantor demonstrates
to Mortgagee’s reasonable satisfaction that the proceedings to be initiated by Grantor will
conclusively operate to prevent the sale of the Mortgaged Property, or any part thereof, to
satisfy such Imposition prior to final determination of such proceedings; or (ii) Grantor
furnishes a good and sufficient bond or surety if requested in writing by and reasonably
satisfactory to Mortgagee; or (iii) Grantor demonstrates to Mortgagee’s reasonable
satisfaction that Grantor has provided as good and sufficient undertaking as may be required
or permitted by law to accomplish a stay of any such sale.

(e) After the occurrence of an Event of Default (whether or not such Event of Default
is subsequently cured), upon request by Mortgagee, Grantor shall pay to Mortgagee an initial
cash reserve in an amount equal to one-half (1/2) of all Impositions for the ensuing tax
fiscal year and shall thereafter continue to deposit with Mortgagee, in monthly
installments, an amount equal to one-twelfth (1/12) of the sum of the annual Impositions
reasonably estimated by Mortgagee, for the purpose of paying the installment of Impositions
next due on the Mortgaged Property (funds deposited for this purpose will hereinafter be
referred to as “Impounds”). In such event Grantor further agrees to cause all
bills, statements or other documents relating to Impositions to be sent or mailed directly
to Mortgagee. Upon receipt of such bills, statements or other documents, and providing
Grantor has deposited sufficient Impounds with Mortgagee pursuant to this
Section 1.8(e), Mortgagee shall timely pay such amounts as may be due thereunder out
of the Impounds so deposited with Mortgagee. If at any time and for any reason the Impounds
deposited with Mortgagee are or will be insufficient to pay such amounts as may then or
subsequently be due, Mortgagee may, at its option, notify Grantor and upon such notice
Grantor shall deposit promptly an amount equal to such deficiency with Mortgagee.
Notwithstanding the foregoing, nothing contained herein will cause Mortgagee to be obligated
to pay any amounts in excess of the amount of funds deposited with Mortgagee pursuant to
this Section 1.8(e). Mortgagee may commingle Impounds with its own funds and will
not be obligated to pay or allow any interest on any Impounds held by Mortgagee pending
disbursement or application hereunder. Mortgagee may reserve for future payment of
Impositions such portion of the Impounds as Mortgagee may in its absolute discretion deem
proper. Should Grantor fail to deposit with Mortgagee (exclusive of that portion of said
payments that has been applied by Mortgagee upon any indebtedness or obligation secured
hereby) sums sufficient to fully pay such Impounds at least fifteen (15) days before
delinquency thereof, Mortgagee may, at Mortgagee’s election, but without any obligation to
do so, advance any amounts required to make up the deficiency, which advances, if any, will
be secured hereby and will be repayable to Mortgagee as herein elsewhere provided, or
Mortgagee may, at its option and without making any advance notice whatever, apply any
Impounds held by it upon any indebtedness or obligation secured hereby in such order as
Mortgagee may determine, notwithstanding that said indebtedness or the performance of said
obligation may not yet be due according to the terms thereof. Upon the occurrence of an
Event of Default, Mortgagee may, at any time at Mortgagee’s option, apply any sums or
amounts in its hands received pursuant to Sections 1.4(b) and 1.8(e) hereof,
or as rents or income of the Mortgaged Property or otherwise, to any indebtedness or
obligation of Grantor secured hereby in such manner and order as Mortgagee may elect,
notwithstanding said indebtedness or the performance of said obligation may not yet be due
according to the terms thereof. The receipt, use or application of any such Impounds paid
by Grantor to Mortgagee hereunder will not be construed to affect the maturity of any
indebtedness secured by this Mortgage or any of the rights or powers of Mortgagee under the
terms of the Loan Documents or any of the obligations of Grantor or any guarantor under the
Loan Documents.

(f) Grantor shall not initiate or affirmatively consent to the joint assessment of any
real and personal property which may constitute all or a portion of the Mortgaged Property
or initiate or affirmatively consent to any other procedure whereby the lien of the real
property taxes and the lien of the personal property taxes will be assessed, levied or
charged to the Mortgaged Property as a single lien.

(g) Upon the request of Mortgagee, Grantor shall promptly cause to be furnished to
Mortgagee, at Grantor’s expense, a tax reporting service covering the Mortgaged Property of
the type, duration and with a company satisfactory to Mortgagee.

1.9 Utilities. Grantor shall pay or shall cause to be paid when due all utility charges that
are incurred by Grantor for the benefit of the Mortgaged Property or that may become a charge or
lien against the Mortgaged Property for gas, electricity, water or sewer services furnished to the
Mortgaged Property and all other assessments or charges of a similar nature, whether public or
private, affecting or related to the Mortgaged Property or any portion thereof, whether or not such
taxes, assessments or charges are or may become liens thereon.

1.10 Actions Affecting Mortgaged Property. Grantor shall give Mortgagee prompt written notice
of the assertion of any claim with respect to, or the filing of any action or proceeding purporting
to affect the Mortgaged Property, the security hereof or the rights or powers of Mortgagee.
Grantor shall appear in and contest any such action or proceeding and shall pay all costs and
expenses, including cost of evidence of title and reasonable attorneys’ fees, in any such action or
proceeding in which Mortgagee or Trustee may appear.

1.11 Actions By Trustee or Mortgagee to Preserve Mortgaged Property. If Grantor fails to make
or cause to be made any payment or to do or cause to be done any act as and in the manner provided
in any of the Loan Documents, Mortgagee, in its discretion, without obligation so to do, without
releasing Grantor from any obligation, and without notice to or demand upon Grantor, may make or do
the same in such manner and to such extent as either may deem necessary to protect the security
hereof. In connection therewith (without limiting their general powers, whether conferred herein,
in other Loan Documents or by law), Mortgagee has and is hereby given the right, but not the
obligation, (i) to enter upon and take possession of the Mortgaged Property; (ii) to make
additions, alterations, repairs and improvements to the Mortgaged Property that they or either of
them may consider reasonably necessary or proper to keep the Mortgaged Property in good condition
and repair; (iii) to appear and participate in any action or proceeding affecting or that may
affect the security hereof or the rights or powers of Mortgagee; (iv) to pay, purchase, contest or
compromise any encumbrance, claim, charge, lien or debt that in the judgment of either may affect
or appears to affect the security of this Mortgage or be prior or superior hereto; and (v) in
exercising such powers, to pay necessary and reasonable expenses, including attorneys’ fees and
costs or other necessary or desirable consultants. Grantor shall, immediately upon demand therefor
by Mortgagee, pay to Mortgagee an amount equal to all respective costs and expenses reasonably
incurred by such party in connection with the exercise by Mortgagee of the foregoing rights,
including, without limitation, costs of evidence of title, court costs, appraisals, surveys and
receiver’s, and reasonable attorneys’ fees, together with interest thereon from the date of such
expenditures at the Default Rate.

1.12 Transfer of Mortgaged Property Or Ownership Interests by Grantor. In order to induce
Mortgagee to make the loan secured hereby, Grantor agrees that, in the event of any “transfer” (as
defined below), without the prior written consent of Mortgagee, Mortgagee has the absolute right at
its option, without prior demand or notice, to declare all sums secured hereby immediately due and
payable. Consent to one such transfer will not be deemed to be a waiver of the right to require
consent to future or successive transfers. Mortgagee may grant or deny such consent in its sole
discretion, and may impose any conditions to such consent in its sole discretion (including,
without limitation, changes to the terms of the loan and the imposition of fees) and, if consent
should be given, any such transfer will be subject to this Mortgage, and any such transferee shall
assume all obligations hereunder and agree to be bound by all provisions contained herein. Such
assumption will not, however, release Grantor or any maker or guarantor of the Note from any
liability thereunder without the prior written consent of Mortgagee. As used herein, “transfer”
includes the direct or indirect sale, agreement to sell, transfer, conveyance, pledge, mortgage,
encumbrance, lien, collateral assignment or hypothecation of the Mortgaged Property, or any portion
thereof or interest therein (other than the Permitted Encumbrances), whether voluntary,
involuntary, by operation of law or otherwise, the execution of any installment land sale contract
or similar instrument affecting all or a portion of the Mortgaged Property, or the lease of all or
substantially all of the Mortgaged Property (excluding, however, any leases entered into in
accordance with the requirements of Section 5.9 of the Loan Agreement, and any other transfers that
are specifically permitted by the terms of the Loan Agreement). The term “transfer” also includes
the direct or indirect transfer, assignment, withdrawal, hypothecation or conveyance of legal or
beneficial ownership of any membership, partnership, stock or other ownership interest (an
“ownership interest”) that results in a change in control of Grantor or in any member or partner of
Grantor (excluding, however, transfers of stock or limited partnership interests in a publicly
traded company, or a change in control of a publicly traded company).

Grubb & Ellis Healthcare REIT II Holdings, LP, a Delaware limited partnership (together with
any successors in interest as provided herein, “G&E Holdings”) will own, directly or
indirectly, at least fifty-one percent (51%) of the membership interests in Grantor (referred to
below as “G&E SPE”). Grubb & Ellis Healthcare REIT II, Inc., a Maryland corporation (together with
any successors in interest as provided herein, “G&E REIT”), is the General Partner of G&E Holdings.

Notwithstanding anything to the contrary in any Loan Document, no consent of or notice to
Mortgagee shall be required in connection with, and the Mortgagee agrees that it expressly consents
to, the following:

(i) the transfer of membership interests in G&E SPE as long as G&E Holdings or
an affiliate of G&E Holdings continues to own, directly or indirectly, at least
fifty-one percent (51%) of the membership interests in G&E SPE;

(ii) the transfer or issuance of securities or shares of G&E REIT involving
forty-nine percent (49%) or less of the securities or shares of G&E REIT in a single
transaction or coordinated series of transactions;

(iii) the transfer of not more than forty-nine percent (49%) of the limited
partnership interests in G&E Holdings, provided that G&E REIT remains the sole
general partner of G&E Holdings; and

(iv) so long as the Post-Merger Requirements are satisfied, after the closing
of such a transaction, any merger of G&E REIT so long as G&E REIT is the surviving
entity.

For purposes of this Section 1.12, “Post-Merger Requirements” shall mean the following
requirements: (A) G&E REIT is the sole general partner G&E Holdings; and (B) G&E REIT shall
continue to be in compliance with any financial covenant or other covenant or obligation set forth
in the Guaranty.

The transfers permitted by the foregoing subsections (i) – (iv) shall be referred to collectively
as “Permitted Transfers.”

1.13 Full Performance Required; Survival of Warranties. All representations, warranties and
covenants of Grantor contained in any loan application or made to Mortgagee in connection with the
loan secured hereby or contained in the Loan Documents or incorporated by reference therein, will
survive the execution and delivery of this Mortgage and will remain continuing obligations,
warranties and representations of Grantor so long as any portion of the obligations secured by this
Mortgage remains outstanding.

1.14 Eminent Domain. If any proceeding or action is commenced for the taking of the Mortgaged
Property, or any part thereof or interest therein, for public or quasi-public use under the power
of eminent domain, condemnation or otherwise, or if the same is taken or damaged by reason of any
public improvement or condemnation proceeding, or in any other manner, or should Grantor receive
any notice or other information regarding such proceeding, action, taking or damage, Grantor shall
give prompt written notice thereof to Mortgagee. Mortgagee is entitled at its option, without
regard to the adequacy of its security, to commence, appear in and prosecute in its own name any
such action or proceeding. Mortgagee is also entitled to make any compromise or settlement in
connection with such taking or damage. All compensation, awards, damages, rights of action and
proceeds awarded to Grantor by reason of any such taking or damage to the Premises or any part
thereof or any interest therein for public or quasi-public use under the power of eminent domain,
by reason of any public improvement or condemnation proceeding, or in any other manner (the
"Condemnation Proceeds”) are hereby assigned to Mortgagee and Grantor agrees to execute
such further assignments of the Condemnation Proceeds as Mortgagee may require. After deducting
therefrom all costs and expenses actually incurred (regardless of the particular nature thereof and
whether incurred with or without suit), including reasonable attorneys’ fees, incurred by it in
connection with any such action or proceeding, Mortgagee shall apply all such Condemnation Proceeds
to the restoration of the Improvements (other than Condemnation Proceeds attributable to temporary
use or occupancy which may be applied, at Mortgagee’s option, to installments of principal and
interest and other charges due under the Note and other Loan Documents when the same become due and
payable) provided that:

(a) the taking or damage will not, in Mortgagee’s reasonable judgment, materially
impair the security for the Loan; and

(b) all conditions set forth in Section 1.5 are met.

If all of the above conditions are met, Mortgagee shall disburse the Condemnation Proceeds in
accordance with the Loan Agreement and only as repairs or replacements are effected and continuing
expenses become due and payable. If any one or more of the above conditions are not met, Mortgagee
shall apply all of the Condemnation Proceeds, after deductions as herein provided, to the repayment
of the outstanding balance of the Note, together with all accrued interest thereon, in such order
as Mortgagee may elect, notwithstanding that said outstanding balance may not be due and payable,
and Mortgagee will have no further obligation to make disbursements pursuant to the Loan Agreement
or the other Loan Documents. If the Condemnation Proceeds are not sufficient to repay the Note in
full, Grantor shall promptly following written request pay any remaining balance, together with all
accrued interest thereon. Application or release of the Condemnation Proceeds as provided herein
will not cure or waive any default or notice of default hereunder or under any other Loan Document
or invalidate any act done pursuant to such notice.

1.15 Additional Security. No other security now existing, or hereafter provided, to secure
the obligations secured hereby will be impaired or affected by the execution of this Mortgage; and
any and all additional security will be taken, considered and held as cumulative. The taking of
additional security, execution of partial releases of the security, or any extension of the time of
payment of the indebtedness will not diminish the force, effect or lien of this Mortgage and will
not affect or impair the liability of any maker, surety or endorser for the payment of said
indebtedness. If Mortgagee at any time holds additional security for any of the obligations
secured hereby, Mortgagee may enforce the sale thereof or otherwise realize upon the same, at its
option, either before, concurrently, or after a sale is made hereunder.

1.16 [Intentionally Deleted]

1.17 Successors and Assigns. This Mortgage applies to, inures to the benefit of (subject,
however, to all restrictions on transfer provided in Section 1.12) and binds all parties
hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The
term “Mortgagee” means the owner and holder of the Note, whether or not named as Mortgagee herein.
This Section 1.17 will not be deemed a waiver of the provisions of Section 1.12
hereof.

1.18 Inspections. Subject to the rights of tenants under existing tenant leases, Mortgagee,
or its agents, representatives or workers, are authorized to enter at any reasonable time, upon at
least two (2) business days prior written notice (unless an emergency or Event of Default exists,
in such case not prior written notice is required) upon or in any part of the Mortgaged Property
for the purpose of inspecting the same and for the purpose of performing any of the acts it is
authorized to perform hereunder or under the terms of any of the Loan Documents.

1.19 Liens. Grantor shall pay and promptly discharge or cause to be paid and promptly
discharged, at Grantor’s cost and expense, all liens, encumbrances and charges (collectively,
"Liens”) upon the Mortgaged Property, or any part thereof or interest therein;
provided, however, that Grantor has the right to contest in good faith and with
reasonable diligence the validity of any such Liens, and pending such contest Grantor shall not be
deemed in default hereunder if Grantor, within ten (10) days of Mortgagee’s request, obtains an
appropriate surety bond and takes all other actions required to remove and release such Lien as an
encumbrance against all and any portion of the Mortgaged Property; provided,
further, however, Mortgagee will not be required to make any further disbursements
of the Loan until all such Liens have been removed as encumbrances against all and any portion of
the Mortgaged Property, and have been insured against by the Title Company to Mortgagee’s
satisfaction. In the case of stop notices, Grantor has the right to contest, in good faith and
with reasonable diligence, the validity of any stop notice, provided Grantor has filed with
Mortgagee a bond in form and amount sufficient to release such stop notice. Grantor shall cause
any such stop notice to be released within ten (10) days of Mortgagee’s request, and, without
limiting the foregoing, Mortgagee shall have no obligation to make any further disbursements of the
Loan until all stop notices have been fully released or discharged. Notwithstanding the foregoing
or anything else contained in this Agreement which may be construed to the contrary, in the event
that any action or other proceeding is instituted to enforce or foreclose any Lien against any of
the Mortgaged Property, the Grantor shall immediately (and in any event within three days of
request by Mortgagee, or five days prior to any scheduled foreclosure sale, whichever is sooner)
make such payments, obtain such surety bonds and/or take such other action as the Mortgagee may, in
its sole discretion, require in order to release the Lien. If Grantor fails to remove and
discharge any such Lien or stop notice as required above, then, in addition to any other right or
remedy of Mortgagee, Mortgagee may, but is not obligated to, discharge the same, either by paying
the amount claimed to be due, or by procuring the discharge of such Lien or stop notice by
depositing in a court a bond or the amount claimed or otherwise giving security for such claim, or
by procuring such discharge in such manner as is or may be prescribed by law. Grantor shall,
promptly upon written demand therefor by Mortgagee, pay to Mortgagee an amount equal to all costs
and expenses incurred by Mortgagee in connection with the exercise by Mortgagee of the foregoing
right to discharge any such Lien or stop notice together with interest thereon from the date of
such expenditure at the Default Rate.

1.20 [Intentionally Deleted]

1.21 Mortgagee’s Powers. Without affecting the liability of any other person liable for the
payment of any obligation herein mentioned, and without affecting the lien or charge of this
Mortgage upon any portion of the Mortgaged Property not then or theretofore released as security
for the full amount of all unpaid obligations, Mortgagee may, from time to time and without notice
(i) release any person so liable, (ii) extend the maturity or alter any of the terms of any such
obligation, (iii) grant other indulgences, (iv) release or reconvey, or cause to be released or
reconveyed at any time at Mortgagee’s option any parcel, portion or all of the Mortgaged Property,
(v) take or release any other or additional security for any obligation herein mentioned, (vi) make
compositions or other arrangements with debtors in relation thereto; (vii) consent in writing to
the making of any map or plat thereof, (viii) join in granting any easement thereon, or (ix) join
in any declaration of restrictions, any extension agreement or any agreement subordinating the lien
or charge hereof.

1.22 Financial Statements. Grantor shall deliver to Mortgagee copies of such financial
statements, balance sheets, profit and loss statements, operating statements, income and expense
statements and other financial information in reasonable detail and at the times required by the
Loan Agreement. All such statements must be prepared in accordance with the requirements of the
Loan Agreement and Mortgagee has the right to audit and inspect all books and records relating
thereto.

1.23 Trade Names. At the written request of Mortgagee, Grantor shall execute a certificate in
form satisfactory to Mortgagee listing the trade names or fictitious business names under which
Grantor intends to operate the Mortgaged Property or any business located thereon and representing
and warranting that Grantor does business under no other trade names or fictitious business names
with respect to the Mortgaged Property. Thereafter, Grantor shall promptly notify Mortgagee in
writing of any change in said trade names or fictitious business names, and will, upon written
request of Mortgagee, execute any additional financing statements and other certificates necessary
to reflect the change in trade names or fictitious business names.

1.24 Leasehold. If a leasehold estate constitutes a portion of the Mortgaged Property,
Grantor agrees not to amend, change, terminate or modify such leasehold estate or any interest
therein without the prior written consent of Mortgagee. Consent to one amendment, change,
agreement or modification will not be deemed to be a waiver of the right to require consent to
other, future or successive amendments, changes, agreements or modifications. Grantor shall
perform all of its applicable obligations and agreements under said leasehold and shall not take
any action or omit to take any action which would effect or permit the termination of said
leasehold. Grantor agrees to promptly notify Mortgagee in writing with respect to any default or
alleged default by any party thereto and to deliver to Mortgagee copies of all notices, demands,
complaints or other communications received or given by Grantor with respect to any such default or
alleged default. Mortgagee has the option to cure any such default and to perform any or all of
Grantor’s obligations thereunder. All sums expended by Mortgagee in curing any such default will
be secured hereby and will be promptly due and payable following written request therefor and will
bear interest from date of expenditure at the Default Rate.

ARTICLE II

ASSIGNMENT OF RENTS AND LEASES

2.1 Assignment. Grantor does hereby absolutely, unconditionally and irrevocably grant,
convey, assign, transfer and set over unto Mortgagee the following, as security for the payment and
performance of the obligations secured by this Mortgage:

(a) all rights, title, interests, estates, powers, privileges, options and other
benefits of Grantor in, to and under any and all leases, subleases, licenses, concessions,
tenancies and any other agreements creating the right of possession without a transfer of
title, whether oral or written, and whether now or hereafter existing, which cover or affect
all or any portion of the Premises, together with all renewals, extensions, modifications,
amendments, guaranties, subleases and assignments thereof (herein collectively referred to
as the “Leases”); and

(b) all of the rents, income, receipts, revenues, issues, profits and other sums of
money (hereinafter collectively called the “Rents”) that are now and/or at any time
hereafter become due and payable to Grantor under the terms of the Leases or arising or
issuing from or out of the Leases or from or out of the Premises or any part thereof,
including but not limited to minimum rents, additional rents, percentage rents, deficiency
rents and liquidated damages following default, security deposits, advance rents, all
proceeds payable under any policy of insurance covering loss of rents resulting from
untenantability caused by destruction or damage to the Premises and all of Grantor’s rights
to recover monetary amounts from any lessee in bankruptcy, conservatorship, receivership or
similar proceeding including, without limitation, rights of recovery for use and occupancy
and damage claims arising out of lease defaults, including rejections, disaffirmances,
repudiations, and similar actions, under the Federal Bankruptcy Code, the Federal Deposit
Insurance Act and other statutes governing the rights of creditors, including specifically
the immediate and continuing right to collect and receive each and all of the foregoing.

2.2 Grantor hereby represents and warrants unto Mortgagee that: (i) Grantor is the sole owner
of the entire lessor’s interest in the Leases and has good title and good right to assign the
Leases and Rents hereby assigned and no other person or entity has any right, title or interest
therein; (ii) Grantor has duly and punctually performed all of the terms, covenants, conditions and
warranties of the Leases that were to be kept, observed and performed by it to date; (iii) Grantor
has not at any time prior to the date hereof exercised any right to subordinate any Lease to any
Mortgage or mortgage or any other encumbrance of any kind; (iv) Grantor has not executed any prior
assignments of the Leases or the Rents; (v) no Rents owing under any existing Lease for any period
subsequent to the date hereof (other than the first month’s rent or the current month’s rent) has
been collected in advance; (vi) Grantor has not performed any act or executed any other instrument
which might prevent Mortgagee from enjoying and exercising any of its rights and privileges
evidenced hereby; and (vii) except as disclosed to Mortgagee in writing, each of the existing
Leases are valid and subsisting and in full force and effect and unmodified, there exists no
defense, counterclaim or set-off to the payment of the Rents thereunder, there are no defaults now
existing thereunder and no event has occurred which with the passage of time or the giving of
notice, or both, would constitute such a default.

2.3 Grantor agrees that, so long as the indebtedness evidenced by the Note or any part thereof
or any other indebtedness secured by this Mortgage shall remain unpaid, Grantor shall not (and any
such actions taken by Grantor in violation of the following provisions shall be null and void),
unless Mortgagee consents thereto in advance in writing in Mortgagee’s sole discretion or such
action is expressly permitted by the Loan Agreement or leasing guidelines promulgated by Mortgagee:
(i) enter into any Lease covering any portion of the Premises, nor renew or extend the term of any
Lease (unless an option therefor was originally reserved by the lessee in the Lease), or relocate
or expand the floor space of any lessee under a Lease within the Premises (unless an option
therefor was originally reserved by the lessee in the Lease); (ii) make any assignment, pledge or
disposition of the Leases or the Rents; (iii) subordinate any of the Leases to any Mortgage or
mortgage or any other encumbrance of any kind or permit, consent or agree to such subordination;
(iv) reduce the Rents payable under any of the Leases, nor modify, alter or amend any of the Leases
or waive, excuse, condone, discount, set off, compromise or in any manner release or discharge any
lessee under any Lease of and from any obligations, covenants, conditions and agreements to be
kept, observed and performed by such lessee, including the obligation to pay the Rents thereunder
in the manner and at the place and time specified therein; (v) incur any indebtedness to a lessee
under or guarantor of any Lease which may under any circumstance be used as an offset against the
Rents or other payments due under said Lease; (vi) exercise any option required or permitted by the
terms of any of the Leases without the prior written consent of Mortgagee; (vii) receive or collect
any Rents from any present or future lessee of the Premises or any part thereof for a period of
more than one month in advance of the date on which such payment is due; (ix) cancel or terminate
any of the Leases, accept a surrender thereof, commence an action of ejectment or any summary
proceedings for dispossession of a lessee under any of the Leases, or convey or transfer or suffer
or permit a conveyance or transfer of the premises demised thereby or of any interest therein so as
to effect directly or indirectly, proximately or remotely, a merger of the estates and rights of,
or a termination or diminution of the obligations of any lessee thereunder; (x) consent to an
assignment or sublease of the interest and estate of any lessee under any of the Leases, whether or
not in accordance with its terms, but such covenant shall not apply to any subleases by Ground
Lessor as tenant under a Master Lease or Grantor’s grant of consent thereto; or (xi) modify or
change the terms of any guaranty of any of the Leases or cancel or terminate such guaranty.

2.4 Grantor covenants with Mortgagee, for so long as the indebtedness evidenced by this Note
or any part thereof or any other indebtedness secured by this Mortgage shall remain unpaid, that
Grantor shall: (i) observe and perform duly and punctually all the obligations imposed upon any
lessor under the Leases and not to do or permit to be done anything to impair the value thereof;
(ii) enforce the performance of each and every term, provision, covenant, agreement and condition
in the Leases to be performed by any lessee thereunder; (iii) appear in and defend any action or
proceeding arising under, occurring out of or in any manner connected with any of the Leases, or
the obligations, liabilities or duties of Grantor or any lessee under the Leases and, upon request
by Mortgagee, to make appearance in the name and on behalf of Mortgagee, but at the expense of
Grantor; (iv) exercise any option or election contained in or relating to any of the Leases which
Mortgagee shall require; (v) deliver to Mortgagee executed copies of any and all Leases, renewals
and extensions of existing Leases and any and all subsequent Leases upon all or any part of the
Premises; (vi) deliver to Mortgagee, promptly upon request by Mortgagee, duly executed tenant
estoppel certificates with respect to Leases designated by Mortgagee; (vii) deliver to Mortgagee,
promptly upon request by Mortgagee, all security deposits held by Grantor pursuant to the terms of
the Leases, which Mortgagee shall hold and disburse in accordance with the terms of the Leases;
(viii) execute and deliver at the request of Mortgagee all such further assignments and other
documents, instruments and assurances with respect to the Leases, Rents and Premises as Mortgagee
shall from time to time require in order to effectuate the purposes of this Article; and
(ix) deliver other records and instruments, including but not limited to rent rolls and books of
account, that Mortgagee shall from time to time require.

2.5 This is a present, absolute, effective, irrevocable and completed assignment by Grantor to
Mortgagee of the Leases and Rents and of the right to collect and apply the same, which is not
contingent upon Mortgagee being in possession of the Premises. However, so long as there exists no
Event of Default, Grantor shall have a conditional license to collect, but not more than one (1)
month in advance, all Rents from the Premises, in trust for Mortgagee, and to use the same for
payment of Impositions, insurance premiums which Grantor is required to pay hereunder or under the
other Loan Documents, all amounts owing to Mortgagee under the Note and the other Loan Documents,
and all other costs and expenses relating to the Premises which Grantor is required to pay under
the Loan Documents, as and when due, before using said Rents for any other purpose.

2.6 Upon or at any time after the occurrence of an Event of Default, or if any representation
or warranty made by Grantor to Mortgagee in connection with the loan evidenced by the Note is
untrue in any material respect, Mortgagee may, at its option, but without obligation to do so,
without notice to or consent of Grantor, either in person or by agent, without regard for the
adequacy of the security for the indebtedness secured hereby, the commission of waste or the
solvency of Grantor, with or without bringing any action or proceeding, or by a receiver or trustee
to be appointed by a court, enter upon, take possession of, maintain, manage and operate the
Premises, make, execute, enforce, modify, alter, cancel and accept the surrender of Leases (whether
or not the same extend beyond the term of this Mortgage), obtain or evict tenants, fix or modify
Rents, refund and collect security deposits, and do any acts which Mortgagee deems proper to
protect the security hereof, and either with or without taking possession of the Premises, in its
own name or in the name of Grantor, sue for or otherwise demand, collect, receive, and give
receipts for all Rents, and apply the same upon the costs of collection thereof, including the fees
and costs of agents and attorneys employed by Mortgagee; upon the costs of managing, operating and
leasing the Premises, including taxes, insurance, maintenance, repairs, improvements, the fees of
professional managing agents, architects, engineers and appraisers, license and permit fees,
leasing fees and commissions, and Mortgagee’s out-of-pocket expenses; and upon any indebtedness
secured hereby, in such order as Mortgagee may determine, subject to applicable statutory
requirements, if any. Mortgagee or such a receiver shall be entitled to remain in possession of
the Premises and to collect the Rents throughout any statutory period of redemption from a
foreclosure sale. The entering upon and taking possession of the Premises, the collection of such
Rents and the application thereof as aforesaid shall not cure or waive any Event of Default, or
invalidate any act done pursuant to such Event of Default or notice of default. Mortgagee may,
without entering into possession or pursuing any other remedy as provided in this section or at law
or in equity, or in conjunction with such possession or pursuit of other remedy, give notice to any
or all lessees authorizing and directing said lessees to pay Rents directly to Mortgagee. If a
lessee receives such a notice, Grantor hereby directs such lessee to make payment pursuant thereto,
and it shall be conclusively presumed, as between Grantor and such lessee, that such lessee is
obligated and entitled to make such payment to Mortgagee, and that such payment constitutes payment
of Rents under the Lease in question. Such notice may be given either in Mortgagee’s or in
Grantor’s name. Grantor shall in every way facilitate the payment of Rents to Mortgagee, when
Mortgagee has the right to receive the same hereunder. Mortgagee shall be accountable only for
Rents actually collected hereunder and not for the rental value of the Premises. Mortgagee shall
not be liable for any security deposit made by any lessee unless and until Mortgagee comes into
actual, physical possession and control thereof. Failure of Mortgagee to collect, or
discontinuance by Mortgagee from collecting, at any time, and from time to time, any Rents, shall
not in any manner affect the rights of Mortgagee to thereafter collect the same.

2.7 Mortgagee shall have the right to take possession of and use, without rental or charge,
any fixtures, equipment, furniture, appliances, personal property, books of account and records of
Grantor or its agents located in or constituting a part of the Premises in connection with
Mortgagee’s occupancy, management and operation of the Premises. Mortgagee shall be deemed to be
the creditor of any lessee in respect of any assignment for the benefit of creditors and any
bankruptcy, arrangement, reorganization, insolvency, dissolution, receivership or other
debtor-relief proceeding affecting such lessee; provided, however, that Mortgagee shall not be
obligated to file timely claims in such proceedings or to otherwise pursue any creditor’s rights
therein.

2.8 Grantor shall, at Grantor’s sole cost and expense, appear in and defend any dispute,
action or proceeding arising under, growing out of or in any manner connected with or affecting any
of the Leases or the obligations, duties or liabilities of Grantor or any lessee thereunder, and
shall pay all costs and expenses of Mortgagee, including attorneys’ fees (prior to trial, at trial
and on appeal), in connection with any such dispute, action or proceeding in which Mortgagee may
appear or with respect to which it may otherwise incur costs or expenses, whether or not Mortgagee
prevails therein.

2.9 Should Grantor fail to make any payment or to do any act as herein provided, then
Mortgagee may, but without obligation to do so, without notice or demand to or upon Grantor, and
without releasing Grantor from any obligation hereof, make or do the same in such manner and to
such extent as Mortgagee may deem necessary or desirable to protect the security hereof, including
specifically, without limiting its general powers, appearing in and defending any action or
proceeding purporting to affect the security hereof or the rights or powers of Mortgagee, and
observing, performing and discharging all or any of the obligations, covenants and agreements of
Grantor in the Leases. In exercising any such powers, Mortgagee may pay its costs and expenses,
employ counsel and incur and pay attorneys’ fees (prior to trial, at trial and on appeal), and
shall receive reimbursement thereof from Grantor upon demand. Grantor hereby grants to Mortgagee
an irrevocable power of attorney, coupled with an interest, to perform all of the acts and things
provided for in this Article as Grantor’s agent and in Grantor’s name.

2.10 Grantor agrees to reimburse Mortgagee, upon demand, for all sums expended by Mortgagee
under the authority hereof, together with interest thereon at the Default Rate specified in the
Note from the date expended, and the same shall be added to the indebtedness evidenced by the Note
and shall be secured by this Mortgage.

2.11 MORTGAGEE SHALL NOT BE LIABLE FOR ANY LOSS SUSTAINED BY GRANTOR RESULTING FROM
MORTGAGEE’S FAILURE TO LET THE PREMISES, OR ANY PART THEREOF, OR FROM ANY OTHER ACT OR OMISSION OF
MORTGAGEE UNDER OR RELATING TO THE LEASES (REGARDLESS OF WHETHER SUCH LOSS IS THE RESULT OF
MORTGAGEE’S NEGLIGENCE) UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
MORTGAGEE, NOR SHALL MORTGAGEE BE OBLIGATED TO PERFORM OR DISCHARGE ANY OBLIGATION, DUTY OR
LIABILITY UNDER THE LEASES BY REASON OF THIS INSTRUMENT OR THE EXERCISE OF RIGHTS OR REMEDIES
HEREUNDER. Mortgagee shall not be liable for its failure to collect, or its failure to exercise
diligence in the collection of, Rents under the Leases, but shall be accountable only for Rents
that Mortgagee actually receives. Grantor will indemnify and hold harmless Mortgagee (for purposes
of this paragraph, the term “Mortgagee” shall include the directors, officers, partners,
employees and agents of Mortgagee and any persons or entities owned or controlled by, owning or
controlling, or under common control or affiliated with Mortgagee) from and against, and reimburse
Mortgagee for, all claims, demands, liabilities, losses, damages, causes of action, judgments,
penalties, costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred
under the Leases by reason of this instrument or the exercise of rights or remedies hereunder, or
which may be asserted against Mortgagee by reason of any alleged obligations or undertakings on its
part to perform or discharge any of the terms, covenants or agreements contained in the Leases,
including specifically any obligation or responsibility for any security deposits or other deposits
delivered to Grantor by any lessee under any Lease and not assigned and delivered to Mortgagee.
THE RELEASES AND INDEMNITIES CONTAINED IN THIS PARAGRAPH SHALL INCLUDE CLAIMS, DEMANDS,
LIABILITIES, LOSSES, DAMAGES, CAUSES OF ACTION, JUDGMENTS, PENALTIES, COSTS AND EXPENSES
(INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES) RESULTING FROM THE NEGLIGENCE OF
MORTGAGEE OR ANY STRICT LIABILITY, BUT NOT THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF MORTGAGEE.
The foregoing releases and indemnities shall not terminate upon release or other termination of
the assignment pursuant to this paragraph. Any amount to be paid under this paragraph by Grantor
to Mortgagee shall be a demand obligation owing by Grantor to Mortgagee, shall bear interest from
the date such amount becomes due until paid at the Default Rate stated in the Note, and shall be
secured by this Mortgage and by any other instrument securing the Note. The assignment pursuant to
this paragraph shall not operate to place responsibility upon Mortgagee for the control, care,
management or repair of the Premises, nor for the carrying out of any of the terms and conditions
of the Leases; nor shall it operate to make Mortgagee responsible or liable for any waste committed
on the Premises by the tenants or by any other parties or for any dangerous or defective condition
of the Premises, or for any negligence in the management, upkeep, repair or control of the Premises
resulting in loss or injury or death to any tenant, licensee, employee or stranger. Mortgagee
shall not be deemed to be a partner of, or a joint venturer with, Grantor with respect to the
Premises or to be a participant of any kind in the management or operation of the Premises.
Neither this assignment, nor the exercise by Mortgagee of its rights hereunder, shall be deemed to
constitute Mortgagee a mortgagee in possession of the Premises, unless Mortgagee elects in writing
to be so constituted.

2.12 The assignment pursuant to this Article is primary in nature to the obligation evidenced
and secured by the Note, this Mortgage and any other document given to secure and collateralize the
indebtedness secured by this Mortgage. Grantor agrees that Mortgagee may enforce this assignment
without first resorting to or exhausting any other security or collateral; provided however, that
nothing herein contained shall prevent Mortgagee from suing on the Note, foreclosing this Mortgage
and/or exercising any other right under any document securing the payment of the Note or at law or
equity.

2.13 In the event any lessee under the Leases should be the subject of any proceeding under
the Federal Bankruptcy Code or any other federal, state or local statute which provides for the
possible termination or rejection of any of the Leases assigned hereby, Grantor covenants and
agrees that if any Lease is so rejected, no settlement for damages shall be made without the prior
written consent of Mortgagee, and any check in payment of damages for rejection of any such Lease
will be made payable to both Grantor and Mortgagee. Grantor hereby assigns any such payment to
Mortgagee and further covenants and agrees that upon the request of Mortgagee, it will duly endorse
to the order of Mortgagee any such check, the proceeds of which will be applied to the Note and
other indebtedness secured by this Mortgage, principal, interest, attorneys’ and collection fees
and other amounts, in such order as Mortgagee in its sole discretion may determine.

2.14 Nothing contained herein and no act done or omitted by Mortgagee pursuant to the powers
and rights granted it hereunder shall be deemed to be a waiver by Mortgagee of its rights and
remedies under the Note or a waiver or curing of any default hereunder or under the Note, and the
assignment pursuant to this Article is made and accepted without prejudice to any of the rights and
remedies possessed by Mortgagee under the terms of the Note. The right of Mortgagee to collect
said principal sum, interest and indebtedness and to enforce any other security therefor held by it
may be exercised by Mortgagee either prior to, simultaneously with, or subsequent to any action
taken by it hereunder.

2.15 Notwithstanding (a) the fact that any Lease or the leasehold estate created thereby may
be held, directly or indirectly, by or for the account of any person or entity which shall have an
interest in the fee estate of the Premises, (b) the operation of law or (c) any other event,
lessee’s leasehold estate under such Lease shall not merge into the fee estate and the lessee shall
remain obligated under such lease as assigned by this assignment.

ARTICLE III

REMEDIES UPON DEFAULT

3.1 Events of Default. Upon written notice to Grantor, any of the following events will
constitute an event of default hereunder (an “Event of Default”):

(a) default in the payment of principal or interest as provided under the terms of the
Note or the Loan Agreement, which is not cured within any applicable notice and cure period,
if any, provided in the Note or the Loan Agreement with respect to such default; or

(b) a breach by Grantor of any representation, warranty or covenant in this Mortgage
which is not cured within any applicable notice and cure period, if any, provided in the
Loan Agreement with respect to such breach; or

(c) the occurrence and continuance of any other Event of Default (i.e., not described
in (a) or (b) above), as defined in any of the other Loan Documents.

3.2 Acceleration Upon Default, Additional Remedies. Upon the occurrence of an Event of
Default, Mortgagee may, at its option, declare all indebtedness secured hereby to be immediately
due and payable without presentment, demand, protest or notice of any kind. Thereafter Mortgagee
may:

(a) Either in person or by agent, with or without bringing any action or proceeding, or
by a receiver appointed by a court and without regard to the adequacy of its security, enter
upon and take possession of the Mortgaged Property, or any part thereof, and do any acts
which it deems necessary or desirable to preserve the value, marketability or rentability of
the Mortgaged Property, or any part thereof or interest therein, increase the income
therefrom or protect the security hereof and, with or without taking possession of the
Mortgaged Property, sue for or otherwise collect the Rents, including those past due and
unpaid, and apply the same, less costs and expenses of operation and collection, including,
without limitation, attorneys’ fees, upon any indebtedness secured hereby, all in such order
as Mortgagee may determine. The entering upon and taking possession of the Mortgaged
Property, the collection of such Rents, and the application thereof as aforesaid, will not
cure or waive any default or notice of default hereunder or invalidate any act done in
response to such default or pursuant to such notice of default and, notwithstanding the
continuance in possession of all or any portion of the Mortgaged Property or the collection,
receipt and application of Rents, Mortgagee will be entitled to exercise every right
provided for in any of the Loan Documents or by law upon occurrence of any Event of Default,
including the right to exercise the power of sale;

(b) Commence an action to foreclose this Mortgage as a mortgage, appoint a receiver, or
specifically enforce any of the covenants hereof; or

(c) Exercise all other rights and remedies provided herein, in any Loan Document or
other document or agreement now or hereafter securing all or any portion of the obligations
secured hereby, or by law.

3.3 Power of Sale and Amplification of Foreclosure Remedies. Without in any way
limiting the other provisions of this Mortgage, but in addition thereto and in amplification
thereof, Grantor hereby confers on Mortgagee the power to sell the Mortgaged Property, and the
interests of persons therein, upon the occurrence and during the continuation of any event of
default hereunder, in the manner and pursuant to the procedures set forth in the Oklahoma Power of
Sale Mortgage Foreclosure Act, 46 O.S. §§ 40-49 (the “Act”), as said Act may be amended from time
to time, or pursuant to other applicable statutory or judicial authority. Such power of sale shall
be exercised by giving the Mortgagor Notice of Intent to Foreclose by Power of Sale and setting
forth, among other things, the nature of the breach(es) or default(s) and the action required to
effect a cure thereof and the time period within which such cure may be effected, all in compliance
with and as may be required by the Act or other applicable statutory authority. If no cure of such
event of default is effected within the time period set forth in the Act, Mortgagee may accelerate
the indebtedness secured hereby without further notice (the aforementioned statutory cure period to
run concurrently with any contractual provision for notice before acceleration of debt) and may
then proceed in the manner and subject to the conditions of the Act or other statutory authority to
send to Mortgagor and other necessary parties a notice of sale and may sell and convey the
Mortgaged Property in accordance with the Act or other statutory authority. The sale shall be made
at one or more sales, as an entirety or in parcels, upon such notice, at such time and places,
subject to all conditions and with the proceeds thereof to be applied all as provided in said Act
or other applicable statutory authority. Mortgagee may enforce this Mortgage by exercising said
power of sale or, at the option of Mortgagee, by judicial foreclosure proceedings as provided by
law. No action of Mortgagee based upon the provisions contained in this Mortgage or in the Act,
including, without limitation, the giving of the notice of intent to foreclose by power of sale or
the notice of sale, shall constitute an election of remedies which would preclude Mortgagee from
accelerating the indebtedness secured hereby and pursuing judicial foreclosure before or at any
time after commencement of the power of sale foreclosure procedure. If Mortgagee institutes
judicial proceedings to enforce this Mortgage, Grantor, to the fullest extent permitted by law,
hereby waives or does not waive, at the sole option of Mortgagee, appraisement of the Mortgaged
Property, said option to be exercised by Mortgagee at the time judgment is rendered or at any time
prior thereto. Grantor fully understands the consequences of conferring on Mortgagee the
above-described power of sale, and if Mortgagee elects to enforce this Mortgage by exercising said
power of sale, Grantor hereby expressly waives, to the fullest extent permitted by law, any right
to a judicial hearing prior to the sale of the Mortgaged Property. As often as any proceedings may
be taken to foreclose this Mortgage, whether pursuant to the power of sale or by judicial
proceedings, or to foreclose the security interest which has been granted to Mortgagee, Grantor
agrees to pay to Mortgagee, in addition to all other sums due, all reasonable costs and expenses,
including reasonable attorneys’ fees, incurred by Mortgagee. Without regard to Mortgagee’s
election of nonjudicial power of sale foreclosure or judicial foreclosure, Mortgagee shall be
entitled to appointment of a receiver by any court of competent jurisdiction.

3.4 Appointment of Receiver. Upon the occurrence of an Event of Default, Mortgagee, as a
matter of right and without notice to Grantor or anyone claiming under Grantor, and without regard
to the then value of the Mortgaged Property or the adequacy of any security for the obligations
then secured hereby, will have the right to apply to any court having jurisdiction to appoint a
receiver or receivers of the Mortgaged Property, and Grantor hereby irrevocably consents to such
appointment and waives notice of any application therefor. Any such receiver or receivers will
have all the usual powers and duties of receivers in like or similar cases and all the powers and
duties of Mortgagee in case of entry as provided herein and in the Loan Agreement and will continue
as such and exercise all such powers until the later of (i) the date of confirmation of sale of the
Mortgaged Property; (ii) the disbursement of all proceeds of the Mortgaged Property collected by
such receiver and the payment of all expenses incurred in connection therewith; or (iii) the
termination of such receivership with the consent of Mortgagee or pursuant to an order of a court
of competent jurisdiction.

3.5 Remedies Not Exclusive. Mortgagee is entitled to enforce payment and performance of any
indebtedness or obligations secured hereby and to exercise all rights and powers under this
Mortgage or under any Loan Document or other agreement or any laws now or hereafter in force,
notwithstanding some or all of the said indebtedness and obligations secured hereby may now or
hereafter be otherwise secured, whether by mortgage, pledge, lien, assignment or otherwise.
Neither the acceptance of this Mortgage nor its enforcement whether by court action or pursuant to
the power of sale or other powers herein contained, will prejudice or in any manner affect
Mortgagee’s right to realize upon or enforce any other security now or hereafter held by Mortgagee,
it being agreed that Mortgagee is entitled to enforce this Mortgage and any other security now or
hereafter held by Mortgagee in such order and manner as it may in its absolute discretion
determine. No remedy herein conferred upon or reserved to Mortgagee is intended to be exclusive of
any other remedy herein or by law provided or permitted, but each is cumulative and is in addition
to every other remedy given hereunder or now or hereafter existing at law or in equity or by
statute. Every power or remedy given by any of the Loan Documents to Mortgagee may be exercised,
concurrently or independently, from time to time and as often as may be deemed expedient by
Mortgagee and Mortgagee may pursue inconsistent remedies.

3.6 Request for Notice. Grantor hereby requests a copy of any notice of default and that any
notice of sale hereunder be mailed to it at the address set forth in Section 5.5 of this
Mortgage.

ARTICLE IV

SECURITY AGREEMENT

4.1 Creation of Security Interest. Grantor hereby grants to Mortgagee a security interest in
and to any and all the Collateral to secure Grantor’s obligations hereunder and under the other
Loan Documents.

4.2 Representations, Warranties and Covenants of Grantor. Grantor hereby represents, warrants
and covenants (which representations, warranties and covenants will survive creation of any
indebtedness of Grantor to Mortgagee and any extension of credit thereunder) as follows:

(a) The Personal Property is not used or bought for personal, family or household
purposes.

(b) The tangible portion of the Personal Property will be kept on or at the Premises;
and Grantor shall not, without the prior written consent of Mortgagee, remove the Personal
Property or any portion thereof therefrom except such portions or items of Personal Property
which are consumed or worn out in ordinary usage, all of which will be promptly replaced by
Grantor with similar items of comparable value.

(c) At the request of Mortgagee, Grantor shall join Mortgagee in executing one or more
financing statements and fixture filings pursuant to the Uniform Commercial Code of Oklahoma
as in effect in the State of Oklahoma (“Uniform Commercial Code”), in form
satisfactory to Mortgagee and shall pay the cost of recording and filing the same in all
public offices wherever recording or filing is deemed by Mortgagee to be necessary or
desirable.

(d) Grantor’s principal place of business is in the State of California at 1551 North
Tustin Avenue, Suite 300, Santa Ana, California 92705. Grantor does not do business under
any trade name except as previously disclosed in writing to Mortgagee. Grantor shall
immediately notify Mortgagee in writing of any change in its place of business or the
adoption or change of any trade name or fictitious business name and shall, upon request of
Mortgagee, execute any additional financing statements or other certificates necessary to
reflect the adoption or change in trade name or fictitious business name.

(e) Grantor shall immediately notify Mortgagee of any claim against the Personal
Property adverse to the interest of Mortgagee therein.

4.3 Use of Personal Property by Grantor. Until the occurrence and during the continuance of
an Event of Default, Grantor may have possession of the Personal Property and use it in any lawful
manner not inconsistent with this Mortgage and not inconsistent with any policy of insurance
thereon.

4.4 Remedies Upon an Event of Default.

(a) In addition to the remedies provided in Section 3.2, upon the occurrence
and during the continuance of an Event of Default, Mortgagee may, at its option, do any one
or more of the following:

(i) Either personally, or by means of a court appointed receiver, take
possession of all or any of the Personal Property and exclude therefrom Grantor and
all others claiming under Grantor, and thereafter hold, store, use, operate, manage,
maintain and control, make repairs, replacements, alterations, additions and
improvements to and exercise all rights and powers of Grantor with respect to the
Personal Property or any part thereof. In the event Mortgagee demands or attempts
to take possession of the Personal Property in the exercise of any rights under this
Mortgage, Grantor agrees to promptly turn over and deliver possession thereof to
Mortgagee;

(ii) Without notice to or demand upon Grantor, make such payments and do such
acts as Mortgagee may deem necessary to protect its security interest in the
Personal Property (including, without limitation, paying, purchasing, contesting or
compromising any lien or encumbrance, whether superior or inferior to such security
interest) and in exercising any such powers or authority to pay all expenses
(including, without limitation, litigation costs and reasonable attorneys’ fees)
incurred in connection therewith;

(iii) Require Grantor from time to time to assemble the Personal Property, or
any portion thereof, at a place designated by Mortgagee and reasonably convenient to
both parties, and promptly deliver such Personal Property to Mortgagee or an agent
or representative designated by Mortgagee. Mortgagee and its agents and
representatives have the right to enter upon any or all of Grantor’s premises and
property to exercise Mortgagee’s rights hereunder;

(iv) Realize upon the Personal Property or any part thereof as herein provided
or in any manner permitted by law and exercise any and all of the other rights and
remedies conferred upon Mortgagee by this Mortgage, by any other Loan Document or by
law, either concurrently or in such order as Mortgagee may determine. Without
limiting the generality of the foregoing, Mortgagee may proceed, in any sequence,
(i) to exercise its rights under Section 3.2 and Section 3.3 with
respect to all or any portion of the Mortgaged Property and all or any portion of
the Personal Property, (ii) to exercise its rights under this Section 4.4
with respect to all or any portion of the Personal Property, and (iii) to exercise
its rights under the provisions of Section 9-604 of the Uniform Commercial Code;

(v) Sell or cause to be sold in such order as Mortgagee may determine, as a
whole or in such parcels as Mortgagee may determine, the Personal Property and the
remainder of the Mortgaged Property;

(vi) Sell, lease or otherwise dispose of the Personal Property at public sale,
upon terms and in such manner as Mortgagee may determine. Mortgagee may be a
purchaser at any sale; and

(vii) Exercise any remedies of a secured party under the Uniform Commercial
Code or any other applicable law.

(b) Unless the Personal Property is perishable or threatens to decline speedily in
value or is of a type customarily sold on a recognized market, Mortgagee shall give Grantor
at least five (5) days’ prior written notice of the time and place of any public sale of the
Personal Property or other intended disposition thereof to be made. Such notice may be
mailed to Grantor at the address set forth in Section 5.5.

(c) The proceeds of any sale under Section 4.4(a) will be applied as follows:

(i) To the repayment of the reasonable costs and expenses of taking, holding
and preparing for the sale and the selling of the Personal Property (including,
without limitation, costs of litigation and attorneys’ fees) and the discharge of
all Impositions, liens and encumbrances, and claims thereof, if any, on the Personal
Property prior to the security interest granted herein (except any Impositions or
liens and encumbrances subject to which such sale has been made);

(ii) To the payment of all indebtedness and obligations owing to Mortgagee
under the Note and other Loan Documents, all Swap Contracts and all other
obligations that are secured by this Mortgage, in such order as Mortgagee
determines; and

(iii) The surplus, if any, will be paid to Grantor or to whomsoever may be
lawfully entitled to receive the same, or as a court of competent jurisdiction may
direct.

(d) Mortgagee has the right to enforce one or more remedies under this
Section 4.4 successively or concurrently; and such action will not operate to estop
or prevent Mortgagee from pursuing any further remedy that it may have. Any repossession or
retaking or sale of the Personal Property pursuant to the provisions hereof will not operate
to release Grantor until full payment of any deficiency has been made in cash.

4.5 Security Agreement. This Mortgage constitutes and is deemed to be a “security agreement”
for all purposes of the Uniform Commercial Code; and Mortgagee is entitled to all the rights and
remedies of a “secured party” under the Uniform Commercial Code.

4.6 Financing Statement and Fixture Filing. This Mortgage is intended to be and constitutes a
fixture filing pursuant to the provisions of the Uniform Commercial Code with respect to all
fixtures included within the Mortgaged Property and is being recorded as a fixture financing
statement and filing under the Uniform Commercial Code, and covers property, goods and equipment
which are or are to become fixtures related to the Premises. Grantor covenants and agrees that
this Mortgage is to be filed in the real estate records of the county where the Premises is located
and shall also operate from the date of such filing as a fixture filing in accordance with
Subsections 9-502(b) and (c) and other applicable provisions of the Uniform Commercial Code. This
Mortgage shall also be effective as a financing statement covering minerals or the like (including
oil and gas) and accounts subject to the Uniform Commercial Code, as amended, and is to be filed
for record in the real estate records of the county where the Premises is situated. Grantor shall
be deemed to be the “debtor” and Mortgagee shall be deemed to be the “secured party” for all
purposes under the Uniform Commercial Code. The full name of Grantor and Grantor’s type of
organization, and the full name of Mortgagee and Mortgagee’s type of organization, are set forth on
the signature page of this Mortgage. The mailing address of Grantor and Mortgagee are set forth in
Section 5.5 (Notices) below. Grantor is the record owner of the Premises. Grantor grants to
Mortgagee a security interest in all existing and future goods which are now or in the future
become fixtures relating to the Premises and the proceeds thereof, including, without limitation,
the goods and proceeds thereof described in Exhibit B. Grantor hereby authorizes Mortgagee
to file any financing statement or financing statement amendment covering the Personal Property or
relating to the security interest created herein without the signature of Grantor, as debtor.
Grantor shall pay all costs of filing such financing statements and any extensions, renewals,
amendments and releases thereof, and shall pay all reasonable costs and expenses of any record
searches for financing statements as Mortgagee may require. Without the prior written consent of
Mortgagee, Grantor shall not create or suffer to be created pursuant to the Uniform Commercial Code
any other security interest in such items, including replacements and additions thereto. Upon the
occurrence and during the continuance of an Event of Default, Mortgagee will have the remedies of a
secured party under the Uniform Commercial Code and, at Mortgagee’s option, may also invoke the
other remedies provided in this Mortgage.

4.7 Filings to Perfect Security. Mortgagee may (and is hereby authorized to) file with any
filing office such financing statements, amendments, addenda, continuations, terminations,
assignments and other records (whether or not executed by Grantor) as Mortgagee may deem necessary
in its sole discretion to perfect and to maintain perfected security interests in the Collateral.
Such documents may designate Mortgagee as the secured party and Grantor as the debtor, identify
Mortgagee’s security interest in the Personal Property, and contain any other items required by law
or deemed necessary by Mortgagee. Upon Mortgagee’s request, Grantor shall execute any such
documents (whether or not required by law). Any such filings made by Mortgagee prior to Grantor’s
execution of this Agreement are hereby authorized, ratified and confirmed by Grantor. Grantor
shall pay to Mortgagee on demand any reasonable out-of-pocket expenses incurred by Grantor in
connection with the preparation, execution and filing of any such filings.

ARTICLE V

MISCELLANEOUS

5.1 Amendments. This instrument cannot be waived, changed, discharged or terminated orally,
but only by an instrument in writing signed by the party against whom enforcement of any waiver,
change, discharge or termination is sought.

5.2 Grantor Waiver of Rights. Grantor waives to the extent permitted by law, (i) the benefit
of all laws now existing or that may hereafter be enacted providing for any appraisement before
sale of any portion of the Mortgaged Property, (ii) all rights of redemption, valuation,
appraisement, stay of execution, notice of election to mature or declare due the whole of the
secured indebtedness and marshalling in the event of foreclosure of the liens hereby created, and
(iii) all rights and remedies which Grantor may have or be able to assert by reason of the laws of
the State of Oklahoma pertaining to the rights and remedies of sureties. Without limiting the
generality of the foregoing, Grantor waives, to the extent permitted by law, all rights to direct
the order in which any of the Mortgaged Property will be sold in the event of any sale or sales
pursuant hereto and to have any of the Mortgaged Property or any other property now or hereafter
constituting security for the indebtedness secured hereby marshaled upon any foreclosure of this
Mortgage or of any other security for any of such indebtedness.

5.3 Statements by Grantor. Grantor shall, within ten (10) days after written notice thereof
from Mortgagee, deliver to Mortgagee a written statement stating, to the best of Grantor’s
knowledge, the unpaid principal of and interest on the Note and any other amounts secured by this
Mortgage and stating whether any offset or defense exists against such principal and interest,
provided, however, that Grantor shall not be obligated to do so more than once a quarter.

5.4 Loan Statement Fees. Grantor shall pay the amount reasonably demanded by Mortgagee or its
authorized loan servicing agent for any statement regarding the obligations secured hereby; which
amount, if any, shall be Mortgagee’s or its authorized loan servicing agent’s standard fee charged
to similar borrowers; provided, however, that such amount may not exceed the maximum amount allowed
by law at the time request for the statement is made.

5.5 Notices. All notices, requests and demands to be made hereunder to the parties hereto
must be in writing and must be delivered to the applicable address stated below by any of the
following means: (a) personal service; (b) electronic communication, whether by telex, telegram or
telecopying (if confirmed in writing sent by registered or certified, first class mail, return
receipt requested); or (c) registered or certified, first class mail, return receipt requested.
Such addresses may be changed by notice to the other parties given in the same manner as provided
above. Any notice, demand or request sent pursuant to either subsection (a) or (b) hereof will be
deemed received upon such personal service or upon dispatch by electronic means, and, if sent
pursuant to subsection (c) will be deemed received three (3) days following deposit in the mail.

	 	 	 
	To Mortgagee:
	 	U.S. Bank National Association

4100 Newport Place, Suite 900

Newport Beach, California 92660

Attention: Loan Administration

Telephone: (949) 863-2395

Facsimile: (949) 863-2374

	To Grantor:
	 	G&E HC REIT II Lawton MOB Portfolio, LLC

1551 North Tustin Avenue, Suite 300

Santa Ana, California 92705

Attn: Danny Prosky

Telephone: (714) 975-2315

Facsimile: (714) 667-0611

	With a copy to:
	 	Gregory Kaplan, PLC

7 East Second Street

Richmond, Virginia 23224

Attention: Joseph J. McQuade, Esq.

5.6 [Intentionally Deleted]

5.7 Captions. The captions or headings at the beginning of each Section hereof are for the
convenience of the parties and are not a part of this Mortgage.

5.8 Invalidity of Certain Provisions. Every provision of this Mortgage is intended to be
severable. If any term or provision hereof is declared to be illegal or invalid for any reason
whatsoever by a court of competent jurisdiction, such illegality or invalidity will not affect the
balance of the terms and provisions hereof, which terms and provisions will remain binding and
enforceable. If the lien of this Mortgage is invalid or unenforceable as to any part of the debt,
or if such lien is invalid or unenforceable as to any part of the Mortgaged Property, the unsecured
or partially unsecured portion of the debt must be completely paid prior to the payment of the
remaining secured portion of the debt, and all payments made on the debt, whether voluntary or
under foreclosure or other enforcement action or procedure, will be considered to have been first
paid on and applied to the full payment of that portion of the debt which is not secured or fully
secured by the lien of this Mortgage.

5.9 Subrogation. To the extent that proceeds of the Note are used to pay any outstanding
lien, charge or prior encumbrance against the Mortgaged Property, such proceeds have been or will
be advanced by Mortgagee at Grantor’s request and Mortgagee will be subrogated to any and all
rights and liens held by any owner or holder of such outstanding liens, charges and prior
encumbrances, irrespective of whether said liens, charges or encumbrances are released.

5.10 Attorneys’ Fees. If the Note is not paid when due or if any Event of Default occurs,
Grantor promises to pay all costs of enforcement and collection, including but not limited to,
reasonable attorneys’ fees, whether or not such enforcement and collection includes the filing of a
lawsuit.

5.11 GOVERNING LAW. THIS MORTGAGE IS GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF OKLAHOMA.

5.12 Joint and Several Obligations. Should this Mortgage be signed by more than one party,
all obligations herein contained will be deemed to be the joint and several obligations of each
party executing this Mortgage. Any married person signing this Mortgage agrees that recourse may
be had against community assets and against his separate property for the satisfaction of all
obligations contained herein.

5.13 Interpretation. In this Mortgage the singular includes the plural and the masculine
includes the feminine and neuter and vice versa, if the context so requires.

5.14 Payment of Mortgage Tax. Without in any way limiting the generality of other provisions
of the Loan Documents relating to the payment of taxes, charges, recording fees and the like,
Grantor shall pay the Oklahoma Real Estate Mortgage Tax which is required to be paid as a
prerequisite to the recording of this Mortgage.

5.15 Counterparts. This document may be executed and acknowledged in counterparts, all of
which executed and acknowledged counterparts together constitute a single document. Signature and
acknowledgment pages may be detached from the counterparts and attached to a single copy of this
document to physically form one document, which may be recorded.

5.16 Debtor-Creditor Relationship. Nothing contained herein or in any Loan Document will be
deemed to create or construed to create a partnership, joint venture or any relationship other than
that of debtor-creditor. Grantor and Mortgagee expressly disclaim any intent to create a
partnership or joint venture pursuant to this Mortgage, any other Loan Document, or any other
document related hereto or thereto.

5.17 Nonforeign Entity. Section 1445 of the Internal Revenue Code of 1986, as amended (the
"Internal Revenue Code”) provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person. To inform Mortgagee that the withholding of
tax will not be required in the event of the disposition of the Mortgaged Property pursuant to the
terms of this Mortgage, Grantor hereby certifies, under penalty of perjury, that:

(a) Grantor is not a foreign corporation, foreign partnership, foreign trust or foreign
estate, as those terms are defined in the Internal Revenue Code and the regulations
promulgated thereunder; and

(b) Grantor’s U.S. employer identification number is 27-4062394.

(c) Grantor’s principal place of business is Orange County, California; and

(d) Grantor is duly qualified to do business in Oklahoma.

It is understood that Mortgagee may disclose the contents of this certification to the Internal
Revenue Service and the Oklahoma Tax Commission and that any false statement contained herein could
be punished by fine, imprisonment or both. Grantor covenants and agrees to execute such further
certificates, which must be signed under penalty of perjury, as Mortgagee reasonably requires. The
covenant set forth herein will survive the foreclosure of the lien of this Mortgage or acceptance
of a deed in lieu thereof.

5.18 Exhibits and Rider. This Mortgage is supplemented by an Exhibit A (Description
of Land), an Exhibit B (Description of Ground Lease), an Exhibit C (Personal
Property), an Exhibit D (Description of Declarations of Reciprocal Easements) and a Rider
to Mortgage (Ground Leasehold Provisions), each of which is hereby incorporated into this Mortgage.

[Signatures on Following Page]

A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE
MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION
UPON DEFAULT BY THE GRANTOR UNDER THIS MORTGAGE.

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

“GRANTOR”

G&E HC REIT II LAWTON MOB PORTFOLIO, LLC,

a Delaware limited liability company

By: Grubb & Ellis Healthcare REIT II Holdings, LP,

a Delaware limited partnership

Its Sole Member as Manager

By: Grubb & Ellis Healthcare REIT II, Inc.,

a Maryland corporation

Its General Partner

By: /s/ Danny Prosky

Danny Prosky

Its President

ACKNOWLEDGMENTS

	 	 	 
	STATE OF CALIFORNIA

COUNTY OF ORANGE

	 	)

)

)

On December 23, 2010, before me, P.C. Han, a Notary Public, personally appeared Danny Prosky 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: /s/ P.C. HanEX-10.6

ISDA®

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of December 17, 2010

U.S. Bank National Association (“Party A”) and G&E HC REIT II Lawton MOB Portfolio, LLC (“Party B”)
have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that
are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and
the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties
confirming those Transactions.

Accordingly, the parties agree as follows:

1. Interpretation

(a) Definitions. The terms defined in Section 12 and in the Schedule will have the meanings
therein specified for the purpose of this Master Agreement.

(b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule
and the other provisions of this Master Agreement, the Schedule will prevail. In the event
of any inconsistency between the provisions of any Confirmation and this Master Agreement
(including the Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

(c) Single Agreement. All Transactions are entered into in reliance on the fact that this
Master Agreement and all Confirmations form a single agreement between the parties
(collectively referred to as this “Agreement”), and the parties would not otherwise enter
into any Transactions.

2. Obligations

(a) General Conditions.

	 	(i)	 	Each party will make each payment or delivery specified in each
Confirmation to be made by it, subject to the other provisions of this
Agreement.

	 	(ii)	 	Payments under this Agreement will be made on the due date for
value on that date in the place of the account specified in the relevant
Confirmation or otherwise pursuant to this Agreement, in freely transferable
funds and in the manner customary for payments in the required currency. Where
settlement is by delivery (that is, other than by payment), such delivery will
be made for receipt on the due date in the manner customary for the relevant
obligation unless otherwise specified in the relevant Confirmation or elsewhere
in this Agreement.

	 	(iii)	 	Each obligation of each party under Section 2(a)(i) is subject
to (1) the condition precedent that no Event of Default or Potential Event of
Default with respect to the other party has occurred and is continuing, (2) the
condition precedent that no Early Termination Date in respect of the relevant
Transaction has occurred or been effectively designated and (3) each other
applicable condition precedent specified in this Agreement.

(b) Change of Account. Either party may change its account for receiving a payment or
delivery by giving notice to the other party at least five Local Business Days prior to the
scheduled date for the payment or delivery to which such change applies unless such other
party gives timely notice of a reasonable objection to such change.

(c) Netting. If on any date amounts would otherwise be payable:

	 	(i)	 	in the same currency; and

	 	(ii)	 	in respect of the same Transaction,

by each party to the other, then, on such date, each party’s obligation to make payment of
any such amount will be automatically satisfied and discharged and, if the aggregate amount
that would otherwise have been payable by one party exceeds the aggregate amount that would
otherwise have been payable by the other party, replaced by an obligation upon the party by
whom the larger aggregate amount would have been payable to pay to the other party the
excess of the larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount will be
determined in respect of all amounts payable on the same date in the same currency in
respect of such Transactions, regardless of whether such amounts are payable in respect of
the same Transaction. The election may be made in the Schedule or a Confirmation by
specifying that subparagraph (ii) above will not apply to the Transactions identified as
being subject to the election, together with the starting date (in which case subparagraph
(ii) above will not, or will cease to, apply to such Transactions from such date). This
election may be made separately for different groups of Transactions and will apply
separately to each pairing of branches or offices through which the parties make and receive
payments or deliveries.

(d) Default Interest; Other Amounts. Prior to the occurrence or effective designation of
an Early Termination Date in respect of the relevant Transaction, a party that defaults in
the performance of any payment obligation will, to the extent permitted by law and subject
to Section 6(c), be required to pay interest (before as well as after judgment) on the
overdue amount to the other party on demand in the same currency as such overdue amount, for
the period from (and including) the original due date for payment to (but excluding) the
date of actual payment, at the Default Rate. Such interest will be calculated on the basis
of daily compounding and the actual number of days elapsed. If, prior to the occurrence or
effective designation of an Early Termination Date in respect of the relevant Transaction, a
party defaults in the performance of any obligation required to be settled by delivery, it
will compensate the other party on demand if and to the extent provided for in the relevant
Confirmation or elsewhere in this Agreement.

3. Representations

Each party represents to the other party (which representations will be deemed to be repeated by
each party on each date on which a Transaction is entered into) that:

(a) Basic Representations.

	 	(i)	 	Status. It is duly organized and validly existing under the laws
of the jurisdiction of its organization or incorporation and, if relevant under
such laws, in good standing;

	 	(ii)	 	Powers. It has the power to execute this Agreement and any other
documentation relating to this Agreement to which it is a party, to deliver this
Agreement and any other documentation relating to this Agreement that it is
required by this Agreement to deliver and to perform its obligations under this
Agreement and any obligations it has under any Credit Support Document to which
it is a party and has taken all necessary action to authorize such execution,
delivery and performance;

	 	(iii)	 	No Violation or Conflict. Such execution, delivery and
performance do not violate or conflict with any law applicable to it, any
provision of its constitutional documents, any order or judgment of any court or
other agency of government applicable to it or any of its assets or any
contractual restriction binding on or affecting it or any of its assets;

	 	(iv)	 	Consents. All governmental and other consents that are required
to have been obtained by it with respect to this Agreement or any Credit Support
Document to which it is a party have been obtained and are in full force and
effect and all conditions of any such consents have been complied with; and

	 	(v)	 	Obligations Binding. Its obligations under this Agreement and
any Credit Support Document to which it is a party constitute its legal, valid
and binding obligations, enforceable in accordance with their respective terms
(subject to applicable bankruptcy, reorganization, insolvency, moratorium or
similar laws affecting creditors’ rights generally and subject, as to
enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law)).

(b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event with respect to it has occurred and is continuing and no such
event or circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any Credit Support document to which it is a party.

(c) Absence of Litigation. There is not pending or, to its knowledge, threatened against it
or any of its Affiliates any action, suit or proceeding at law or in equity or before any
court, tribunal, governmental body, agency or official or any arbitrator that is likely to
affect the legality, validity or enforceability against it of this Agreement or any Credit
Support Document to which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

(d) Accuracy of Specified Information. All applicable information that is furnished in
writing by or on behalf of it to the other party and is identified for the purpose of this
Section 3(d) in the Schedule is, as of the date of the information, true, accurate and
complete in every material respect.

4. Agreements

Each party agrees with the other that, so long as either party has or may have any obligation under
this Agreement or under any Credit Support Document to which it is a party;

(a) Furnish Specified Information. It will deliver to the other party any forms, documents
or certificates specified in the Schedule or any Confirmation by the date specified in the
Schedule or such Confirmation or, if none is specified, as soon as reasonably practicable.

(b) Maintain Authorizations. It will use all reasonable efforts to maintain in full force
and effect all consents of any governmental or other authority that are required to be
obtained by it with respect to this Agreement or any Credit Support Document to which it is
a party and will use all reasonable efforts to obtain any that may become necessary in the
future.

(c) Comply with Laws. It will comply in all material respects with all applicable laws and
orders to which it may be subject if failure so to comply would materially impair its
ability to perform its obligations under this Agreement or any Credit Support Document to
which it is a party.

5. Events of Default and Termination Events

(a) Events of Default. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of such party
of any of the following events constitutes an event of default (an “Event of Default”) with
respect to such party;

	 	(i)	 	Failure to Pay or Deliver. Failure by the party to make, when
due, any payment under this Agreement or delivery under Section 2(a)(i) or 2(d)
required to be made by it if such failure is not remedied on or before the third
Local Business Day after notice of such failure is given to the party;

	 	(ii)	 	Breach of Agreement. Failure by the party to comply with or
perform any agreement or obligation (other than an obligation to make any
payment under this Agreement or delivery under Section 2(a)(i) or 2(d) or to
give notice of a Termination Event) to be complied with or performed by the
party in accordance with this Agreement if such failure is not remedied on or
before the thirtieth day after notice of such failure is given to the party;

	 	(iii)	 	Credit Support Default.

	 	(1)	 	failure by the party or any Credit Support Provider
of such party to comply with or perform any agreement or obligation to be
complied with or performed by it in accordance with any Credit Support
Document if such failure is continuing after any applicable grace period
has elapsed;

	 	(2)	 	the expiration or termination of such Credit
Support Document or the failing or ceasing of such Credit Support
Document to be in full force and effect for the purpose of this Agreement
(in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to
which such Credit Support Document relates without the written consent of
the other party; or

	 	(3)	 	the party or such Credit Support Provider
disaffirms, disclaims, repudiates or rejects, in whole or in part, or
challenges the validity of, such Credit Support Document;

	 	(iv)	 	Misrepresentation. A representation made or repeated or deemed
to have been made or repeated by the party or any Credit Support Provider of
such party in this Agreement or any Credit Support Document proves to have been
incorrect or misleading in any material respect when made or repeated or deemed
to have been made or repeated;

	 	(v)	 	Default under Specified Transaction. The party, any Credit
Support Provider of such party or any applicable Specified Entity of such party
(1) defaults under a Specified Transaction and, after giving effect to any
applicable notice requirement or grace period, there occurs a liquidation of, an
acceleration of obligations under, or an early termination of, that Specified
Transaction, (2) defaults, after giving effect to any applicable notice
requirement or grace period, in making any payment or delivery due on the last
payment, delivery or exchange date of, or any payment on early termination of, a
Specified Transaction (or such default continues for at least three Local
Business Days if there is no applicable notice requirement or grace period) or
(3) disaffirms, disclaims, repudiates or rejects, in whole or in part, a
Specified Transaction (or such action is taken by any person or entity appointed
or empowered to operate it or act on its behalf);

	 	(vi)	 	Cross Default. If “Cross Default” is specified in the Schedule
as applying to the party, the occurrence or existence of (1) a default, event of
default or other similar condition or event (however described) in respect of
such party, any Credit Support Provider of such party or any applicable
Specified Entity of such party under one or more agreements or instruments
relating to Specified Indebtedness of any of them (individually or collectively)
in an aggregate amount of not less than the applicable Threshold Amount (as
specified in the Schedule) which has resulted in such Specified Indebtedness
becoming, or becoming capable at such time of being declared, due and payable
under such agreements or instruments, before it would otherwise have been due
and payable or (2) a default by such party, such Credit Support Provider or such
Specified Entity (individually or collectively) in making one or more payments
on the due date thereof in an aggregate amount of not less than the applicable
Threshold Amount under such agreements or instruments (after giving effect to
any applicable notice requirement or grace period);

	 	(vii)	 	Bankruptcy. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party:

	 	(1)	 	is dissolved (other than pursuant to a
consolidation, amalgamation or merger); (2) becomes insolvent or is
unable to pay its debts or fails or admits in writing its inability
generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its
creditors; (4) institutes or has instituted against it a proceeding
seeking a judgment of insolvency or bankruptcy or any other relief under
any bankruptcy or insolvency law or other similar law affecting
creditors’ rights, or a petition is presented for its winding-up or
liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A)
results in a judgment of insolvency or bankruptcy or the entry of an
order for relief or the making of an order for its winding-up or
liquidation or (B) is not dismissed, discharged, stayed or restrained in
each case within 30 days of the institution or presentation thereof; (5)
has a resolution passed for its winding-up, official management or
liquidation (other than pursuant to a consolidation, amalgamation or
merger); (6) seeks or becomes subject to the appointment of an
administrator, provisional liquidator, conservator, receiver, trustee,
custodian or other similar official for it or for all or substantially
all its assets; (7) has a secured party take possession of all or
substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party
maintains possession, or any such process is not dismissed, discharged,
stayed or restrained, in each case within 30 days thereafter; (8) causes
or is subject to any event with respect to it which, under the applicable
laws of any jurisdiction, has an analogous effect to any of the events
specified in clauses (1) to (7) (inclusive); or (9) takes any action in
furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

	 	(viii)	 	Merger Without Assumption. The party or any Credit Support Provider of such
party consolidates or amalgamates with, or merges with or into, or transfers all
or substantially all its assets to, another entity and, at the time of such
consolidation, amalgamation, merger or transfer:

	 	(1)	 	the resulting, surviving or transferee entity fails
to assume all the obligations of such party or such Credit Support
Provider under this Agreement or any Credit Support Document to which it
or its predecessor was a party by operation of law or pursuant to an
agreement reasonably satisfactory to the other party to this Agreement;
or

	 	(2)	 	the benefits of any Credit Support Document fail to
extend (without the consent of the other party) to the performance by
such resulting, surviving or transferee entity of its obligations under
this Agreement.

(b) Termination Events. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of such party
of any event specified below constitutes an Illegality if the event is specified in (i)
below, and, if specified to be applicable, a Credit Event Upon Merger if the event is
specified pursuant to (ii) below or an Additional Termination Event if the event is
specified pursuant to (iii) below:

	 	(i)	 	Illegality. Due to the adoption of, or any change in, any
applicable law after the date on which a Transaction is entered into, or due to
the promulgation of, or any change in, the interpretation by any court, tribunal
or regulatory authority with competent jurisdiction of any applicable law after
such date, it becomes unlawful (other than as a result of a breach by the party
of Section 4(b)) for such party (which will be the Affected Party):

	 	(1)	 	to perform any absolute or contingent obligation to
make a payment or delivery or to receive a payment or delivery in respect
of such Transaction or to comply with any other material provision of
this Agreement relating to such Transaction; or

	 	(2)	 	to perform, or for any Credit Support Provider of
such party to perform, any contingent or other obligation which the party
(or such Credit Support Provider) has under any Credit Support Document
relating to such Transaction;

	 	(ii)	 	Credit Event Upon Merger. If “Credit Event Upon Merger” is
specified in the Schedule as applying to the party, such party (“X”), any Credit
Support Provider of X or any applicable Specified Entity of X consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and such action does not constitute an event
described in Section 5(a)(viii) but the creditworthiness of the resulting,
surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately prior
to such action (and, in such event, X or its successor or transferee, as
appropriate, will be the Affected Party); or

	 	(iii)	 	Additional Termination Event. If any “Additional Termination
Event” is specified in the Schedule or any Confirmation as applying, the
occurrence of such event (and, in such event, the Affected Party or Affected
Parties shall be as specified for such Additional Termination Event in the
Schedule or such Confirmation).

(c) Event of Default and Illegality. If an event or circumstance which would otherwise
constitute or give rise to an Event of Default also constitutes an Illegality, it will be
treated as an Illegality and will not constitute an Event of Default.

6. Early Termination

(a) Right to Terminate Following Event of Default. If at any time an Event of Default with
respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other
party (the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting
Party specifying the relevant Event of Default, designate a day not earlier than the day
such notice is effective as an Early Termination Date in respect of all outstanding
Transactions. If, however, “Automatic Early Termination” is specified in the Schedule as
applying to a party, then an Early Termination Date in respect of all outstanding
Transactions will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent
analogous thereto, (8), and as of the time immediately preceding the institution of the
relevant proceeding or the presentation of the relevant petition upon the occurrence with
respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the
extent analogous thereto, (8).

(b) Right to Terminate Following Termination Event.

	 	(i)	 	Notice. If a Termination Event occurs, an Affected Party will,
promptly upon becoming aware of it, notify the other party, specifying the
nature of that Termination Event and each Affected Transaction and will also
give such other information about that Termination Event as the other party may
reasonably require.

	 	(ii)	 	Two Affected Parties. If an Illegality under Section 5(b)(i)(1)
occurs and there are two Affected Parties, each party will use all reasonable
efforts to reach agreement within 30 days after notice thereof is given under
Section 6(b)(i) on action to avoid that Termination Event.

(iii) Right to Terminate. If:

	 	(1)	 	an agreement under Section 6(b)(ii) has not been
effected with respect to all Affected Transactions within 30 days after
an Affected Party gives notice under Section 6(b)(i); or

	 	(2)	 	an Illegality other than that referred to in
Section 6(b)(ii), a Credit Event Upon Merger or an Additional Termination
Event occurs,

either party in the case of an Illegality, any Affected Party in the case of
an Additional Termination Event if there is more than one Affected Party, or
the party which is not the Affected Party in the case of a Credit Event Upon
Merger or an Additional Termination Event if there is only one Affected Party
may, by not more than 20 days notice to the other party and provided that the
relevant Termination Event is then continuing, designate a day not earlier
than the day such notice is effective as an Early Termination Date in respect
of all Affected Transactions.

(c) Effect of Designation.

	 	(i)	 	If notice designating an Early Termination Date is given under
Section 6(a) or (b), the Early Termination Date will occur on the date so
designated, whether or not the relevant Event of Default or Termination Event is
then continuing.

	 	(ii)	 	Upon the occurrence or effective designation of an Early
Termination Date, no further payments or deliveries under Section 2(a)(i) or
2(d) in respect of the Terminated Transactions will be required to be made, but
without prejudice to the other provisions of this Agreement. The amount, if
any, payable in respect of an Early Termination Date shall be determined
pursuant to Section 6(e).

(d) Calculations.

	 	(i)	 	Statement. On or as soon as reasonably practicable following the
occurrence of an Early Termination Date, each party will make the calculations
on its part, if any, contemplated by Section 6(e) and will provide to the other
party a statement (1) showing, in reasonable detail, such calculations
(including all relevant quotations and specifying any amount payable under
Section 6(e)) and (2) giving details of the relevant account to which any amount
payable to it is to be paid. In the absence of written confirmation from the
source of a quotation obtained in determining a Market Quotation, the records of
the party obtaining such quotation will be conclusive evidence of the existence
and accuracy of such quotation.

	 	(ii)	 	Payment Date. An amount calculated as being due in respect of
any Early Termination Date under Section 6(e) will be payable on the day that
notice of the amount payable is effective (in the case of an Early Termination
Date which is designated or occurs as a result of an Event of Default) and on
the day which is two Local Business Days after the day on which notice of the
amount payable is effective (in the case of an Early Termination Date which is
designated as a result of a Termination Event). Such amount will be paid
together with (to the extent permitted under applicable law) interest thereon
(before as well as after judgment), from (and including) the relevant Early
Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate. Such interest will be calculated on the basis of daily
compounding and the actual number of days elapsed.

(e) Payments on Early Termination. If an Early Termination Date occurs, the following
provisions shall apply based on the parties’ election in the Schedule of a payment measure,
either “Market Quotation” or “Loss”, and a payment method, either the “First Method” or the
“Second Method”. If the parties fail to designate a payment measure or payment method in
the Schedule, it will be deemed that “Market Quotation” or the “Second Method”, as the case
may be, shall apply. The amount, if any, payable in respect of an Early Termination Date
and determined pursuant to this Section will be subject to any Set-off.

	 	(i)	 	Events of Default. If the Early Termination Date results from an
Event of Default:

	 	(1)	 	First Method and Market Quotation. If the First
Method and Market Quotation apply, the Defaulting Party will pay to the
Non-defaulting Party the excess, if a positive number, of (A) the sum of
the Settlement Amount (determined by the Non-defaulting Party) in respect
of the Terminated Transactions and the Unpaid Amounts owing to the
Non-defaulting Party over (B) the Unpaid Amounts owing to the Defaulting
Party.

	 	(2)	 	First Method and Loss. If the First Method and
Loss apply, the Defaulting Party will pay to the Non-defaulting Party, if
a positive number, the Non-defaulting Party’s Loss in respect of this
Agreement.

	 	(3)	 	Second Method and Market Quotation. If the Second
Method and Market Quotation apply, an amount will be payable equal to (A)
the sum of the Settlement Amount (determined by the Non-defaulting Party)
in respect of the Terminated Transactions and the Unpaid Amounts owing to
the Non-defaulting Party less (B) the Unpaid Amounts owing to the
Defaulting Party. If that amount is a positive number, the Defaulting
Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that
amount to the Defaulting Party.

	 	(4)	 	Second Method and Loss. If the Second Method and
Loss apply, an amount will be payable equal to the Non-defaulting Party’s
Loss in respect of this Agreement. If that amount is a positive number,
the Defaulting Party will pay it to the Non-defaulting Party; if it is a
negative number, the Non-defaulting Party will pay the absolute value of
that amount to the Defaulting Party.

	 	(ii)	 	Termination Events. If the Early Termination Date results from a
Termination Event:

	 	(1)	 	One Affected Party. If there is one Affected
Party, the amount payable will be determined in accordance with Section
6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
applies, except that, in either case, references to the Defaulting Party
and to the Non-defaulting Party will be deemed to be references to the
Affected Party and the party which is not the Affected Party,
respectively, and, if Loss applies and fewer than all the Transactions
are being terminated, Loss shall be calculated in respect of all
Terminated Transactions.

	 	(2)	 	Two Affected Parties. If there are two Affected
Parties:

	 	(A)	 	If Market Quotation applies, each
party will determine a Settlement Amount in respect of the
Terminated Transactions, and an amount will be payable equal to
(I) the sum of (a) one-half of the difference between the
Settlement Amount of the party with the higher Settlement Amount
(“X”) and the Settlement Amount of the party with the lower
Settlement Amount (“Y”) and (b) the Unpaid Amounts owing to X less
(II) the Unpaid Amounts owing to Y; and

	 	(B)	 	If Loss applies, each party will
determine its Loss in respect of this Agreement (or, if fewer than
all the Transactions are being terminated, in respect of all
Terminated Transactions) and an amount will be payable equal to
one-half of the difference between the Loss of the party with the
higher Loss (“X”) and the Loss of the party with the lower Loss
(“Y”).

If the amount payable is a positive number, Y will pay it to X; if it
is a negative number, X will pay the absolute value of that amount to
Y.

	 	(iii)	 	Adjustment for Bankruptcy. In circumstances where an Early
Termination Date occurs because “Automatic Early Termination” applies in respect
of a party, the amount determined under this Section 6(e) will be subject to
such adjustments as are appropriate and permitted by law to reflect any payments
or deliveries made by one party to the other under this Agreement (and retained
by such other party) during the period from the relevant Early Termination Date
to the date for payment determined under Section 6(d)(ii).

	 	(iv)	 	Pre-Estimate. The parties agree that if Market Quotation applies
an amount recoverable under this Section 6(e) is a reasonable pre-estimate of
loss and not a penalty. Such amount is payable for the loss of bargain and the
loss of protection against future risks and except as otherwise provided in this
Agreement neither party will be entitled to recover any additional damages as a
consequence of such losses.

7. Transfer

Neither this Agreement nor any interest or obligation in or under this Agreement may be transferred
(whether by way of security or otherwise) by either party without the prior written consent of the
other party, except that:

(a) a party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially all its
assets to, another entity (but without prejudice to any other right or remedy under this
Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8. Miscellaneous

(a) Entire Agreement. This Agreement constitutes the entire agreement and understanding of
the parties with respect to its subject matter and supersedes all oral communication and
prior writings with respect thereto.

(b) Amendments. No amendment modification or waiver in respect of this Agreement will be
effective unless in writing (including a writing evidenced by a facsimile transmission) and
executed by each of the parties or confirmed by an exchange of telexes or electronic
messages on an electronic messaging system.

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the
obligations of the parties under this Agreement will survive the termination of any
Transaction.

(d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies
and privileges provided in this Agreement are cumulative and not exclusive of any rights,
powers, remedies and privileges provided by law.

(e) Counterparts and Confirmations.

	 	(i)	 	This Agreement (and each amendment, modification, and waiver in
respect of it) may be executed and delivered in counterparts (including by
facsimile transmission), each of which will be deemed an original.

	 	(ii)	 	The parties intend that they are legally bound by the terms of
each Transaction from the moment they agree to those terms (whether orally or
otherwise). A Confirmation shall be entered into as soon as practicable and may
be executed and delivered in counterparts (including by facsimile transmission)
or be created by an exchange of telexes or by an exchange of electronic messages
on an electronic messaging system, which in each case will be sufficient for all
purposes to evidence a binding supplement to this Agreement. The parties will
specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

(f) No Waiver of Rights. A failure or delay in exercising any right, power or privilege in
respect of this Agreement will not be presumed to operate as a waiver, and a single or
partial exercise of any right power or privilege will not be presumed to preclude any
subsequent or further exercise, of that right power or privilege or the exercise of any
other right, power or privilege.

(g) Headings. The headings used in this Agreement are for convenience of reference only and
are not to affect the construction of or to be taken into consideration in interpreting this
Agreement.

9. Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees, incurred by such other party by reason of
the enforcement and protection of its rights under this Agreement or any Credit Support Document to
which the Defaulting Party is a party or by reason of the early termination of any Transaction,
including, but not limited to, costs of collection.

10. Notices

(a) Effectiveness. Any notice or other communication in respect of this Agreement may be
given in any manner set forth below (except that a notice or other communication under
Section 5 or 6 may not be given by facsimile transmission or electronic messaging system) to
the address or number or in accordance with the electronic messaging system details provided
(see the Schedule) and will be deemed effective as indicated:

	 	(i)	 	if in writing and delivered in person or by courier on the date
it is delivered;

	 	(ii)	 	if sent by telex, on the date the recipient’s answerback is
received;

	 	(iii)	 	if sent by facsimile transmission, on the date that transmission
is received by a responsible employee of the recipient in legible form (it being
agreed that the burden of proving receipt will be on the sender and will not be
met by a transmission report generated by the sender’s facsimile machine);

	 	(iv)	 	if sent by certified or registered mail (airmail, if overseas) or
the equivalent (return receipt requested), on the date that mail is delivered or
its delivery is attempted; or

	 	(v)	 	if sent by electronic messaging system, on the date that
electronic message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is
not a Local Business Day or that communication is delivered (or attempted) or received, as
applicable, after the close of business on a Local Business Day, in which case that
communication shall be deemed given and effective on the first following day that is a Local
Business Day.

(b) Change of Addresses. Either party may by notice to the other change the address, telex
or facsimile number or electronic messaging system details at which notices or other
communications are to be given to it.

11. Governing Law and Jurisdiction

(a) Governing Law. This Agreement will be governed by and construed in accordance with the
law specified in the Schedule.

(b) Jurisdiction. With respect to any suit, action or proceedings relating to this
Agreement (“Proceedings”), each party irrevocably:

	 	(i)	 	submits to the jurisdiction of the English courts, if this
Agreement is expressed to be governed by English law, or to the non-exclusive
jurisdiction of the courts of the State of New York and the United States
District Court located in the Borough of Manhattan in New York City, if this
Agreement is expressed to be governed by the laws of the State of New York; and

	 	(ii)	 	waives any objection which it may have at any time to the laying
of venue of any Proceedings brought in any such court, waives any claim that
such Proceedings have been brought in an inconvenient forum and further waives
the right to object, with respect to such Proceedings, that such court does not
have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act
1982 or any modification, extension or re-enactment thereof for the time being in force) nor
will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) Waiver of Immunities. Each party irrevocably waives, to the fullest extent permitted by
applicable law, with respect to itself and its revenues and assets (irrespective of their
use or intended use), all immunity on the grounds of sovereignty or other similar grounds
from (i) suit, (ii) jurisdiction of any court, (iii) relief by way of injunction, order for
specific performance or for recovery of property, (iv) attachment of its assets (whether
before or after judgment) and (v) execution or enforcement of any judgment to which it or
its revenues or assets might otherwise be entitled in any Proceedings in the courts of any
jurisdiction and irrevocably agrees, to the extent permitted by applicable law, that it will
not claim any such immunity in any Proceedings.

12. Definitions

As used in this Agreement:

“Additional Termination Event” has the meaning specified in Section 5(b).

“Affected Party” has the meaning specified in Section 5(b).

“Affected Transactions” means (a) with respect to any Termination Event consisting of an
Illegality, all Transactions affected by the occurrence of such Termination Event and (b) with
respect to any other Termination Event, all Transactions.

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or indirectly, the person
or any entity directly or indirectly under common control with the person. For this purpose,
“control” of any entity or person means ownership of a majority of the voting power of the entity
or person.

“Applicable Rate” means:

(a) in respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either party from and
after the date (determined in accordance with Section 6(d)(ii)) on which that amount is
payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would have been but
for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

(d) in all other cases, the Termination Rate.

“consent” includes a consent, approval, action, authorization, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon Merger” has the meaning specified in Section 5(b).

“Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement.

“Credit Support Provider” has the meaning specified in the Schedule.

“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant
amount plus 1% per annum.

“Defaulting Party” has the meaning specified in Section 6(a).

“Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iii).

“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Illegality” has the meaning specified in Section 5(b).

“law” includes any treaty, law, rule or regulation and “lawful” and “unlawful” will be construed
accordingly.

“Local Business Day” means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to
any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if
not so specified, as otherwise agreed by the parties in writing or determined pursuant to
provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located, (c) in relation to any notice or other
communication, including notice contemplated under Section 5(a)(i), in the city specified in the
address for notice provided by the recipient and, in the case of a notice contemplated by Section
2(b), in the place where the relevant new account is to be located and (d) in relation to Section
5(a)(v)(2), in the relevant locations for performance with respect to such Specified Transaction.

“Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, an amount that party reasonably determines in good faith to be its total
losses and costs (or gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions, as the case may be,
including any loss of bargain, cost of funding or, at the election of such party but without
duplication, loss or cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from any of them).
Loss includes losses and costs (or gains) in respect of any payment or delivery required to have
been made (assuming satisfaction of each applicable condition precedent) on or before the relevant
Early Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or
(3) or 6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and out-of-pocket
expenses referred to under Section 9. A party will determine its Loss as of the relevant Early
Termination Date, or, if that is not reasonably practicable, as of the earliest date thereafter as
is reasonably practicable. A party may (but need not) determine its Loss by reference to
quotations of relevant rates or prices from one or more leading dealers in the relevant markets.

“Market Quotation” means, with respect to one or more Terminated Transactions and a party making
the determination, an amount determined on the basis of quotations from Reference Market-makers.
Each quotation will be for an amount, if any, that would be paid to such party (expressed as a
negative number) or by such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document with respect to the
obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the
“Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent
and assuming the satisfaction of each applicable condition precedent) by the parties under Section
2(a)(i) in respect of such Terminated Transaction or group of Terminated Transactions that would,
but for the occurrence of the relevant Early Termination Date, have been required after that date.
For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or delivery that would, but
for the relevant Early Termination Date, have been required (assuming satisfaction of each
applicable condition precedent) after that Early Termination Date is to be included. The
Replacement Transaction would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or its agent) will
request each Reference Market-maker to provide its quotation to the extent reasonably practicable
as of the same day and time (without regard to different time zones) on or as soon as reasonably
practicable after the relevant Early Termination Date. The day and time as of which those
quotations are to be obtained will be selected in good faith by the party obliged to make a
determination under Section 6(e), and, if each party is so obliged, after consultation with the
other. If more than three quotations are provided, the Market Quotation will be the arithmetic
mean of the quotations, without regard to the quotations having the highest and lowest values. If
exactly three such quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of
such Terminated Transaction or group of Terminated Transactions cannot be determined.

“Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

“Non-defaulting Party” has the meaning specified in Section 6(a).

“Potential Event of Default” means any event which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default.

“Reference Market-makers” means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing
which satisfy all the criteria that such party applies generally at the time in deciding whether to
offer or to make an extension of credit and (b) to the extent practicable, from among such dealers
having an office in the same city.

“Scheduled Payment Date” means a date on which a payment or delivery is to be made under Section
2(a)(i) with respect to a Transaction.

“Set-off” means set-off, offset, combination of accounts, right of retention or withholding or
similar right or requirement to which the payer of an amount under Section 6 is entitled or subject
(whether arising under this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

“Settlement Amount” means with respect to a party and any Early Termination Date, the sum of:

(a) The Market Quotations (whether positive or negative) for each Terminated Transaction or
group of Terminated Transactions for which a Market Quotation is determined; and

(b) such party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions for which
Market Quotation cannot be determined or would not (in the reasonable belief of the party
making the determination) produce a commercially reasonable result.

“Specified Entity” has the meaning specified in the Schedule.

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an agreement
with respect thereto) now existing or hereafter entered into between one party to this Agreement
(or any Credit Support Provider of such party or any applicable Specified Entity of such party) and
the other party to this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or
equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including any option with
respect to any of these transactions), (b) any combination of these transactions and (c) any other
transaction identified as a Specified Transaction in this Agreement or the relevant confirmation.

“Terminated Transactions” means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all
Transactions (in either case) in effect immediately before the effectiveness of the notice
designating that Early Termination Date (or, if “Automatic Early Termination” applies, immediately
before that Early Termination Date).

“Termination Event” means an Illegality or, if specified to be applicable, a Credit Event Upon
Merger or an Additional Termination Event.

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if it were to fund or of
funding such amounts.

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate
of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to
such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in
respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or
would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or
prior to such Early Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market value of that which was (or would have been) required to
be delivered as of the originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such amounts, from (and
including) the date such amounts or obligations were or would have been required to have been paid
or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such amounts
of interest will be calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above shall be
reasonably determined by the party obliged to make the determination under Section 6(e) or, if each
party is so obliged, it shall be the average of the fair market values reasonably determined by
both parties.

[SIGNATURE PAGE TO FOLLOW]

1

IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

Party A

U.S. BANK NATIONAL ASSOCIATION

By: /s/ Jonathan M. York

Name: Jonathan M. York

Its: Senior Vice President

Date: December 28, 2010

G&E HC REIT II LAWTON MOB PORTFOLIO, LLC,

a Delaware limited liability company

By: Grubb & Ellis Healthcare REIT II Holdings, LP,

a Delaware limited partnership

Its Sole Member as Manager

By: Grubb & Ellis Healthcare REIT II, Inc.,

a Maryland corporation

Its General Partner

By: /s/ Danny Prosky

Name: Danny Prosky

Title: President

Date: December 27, 2010

2

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