Document:

Exhibit 10.25

 

EXHIBIT 10.25

ENVIRONMENTAL INDEMNITY AGREEMENT

     This Environmental Indemnity Agreement (this “Agreement”), which is dated as of
February 15, 2008, is executed by NNN WESTERN PLACE, LLC, a Delaware limited liability company, NNN
WESTERN PLACE 1, LLC, a Delaware limited liability company, NNN WESTERN PLACE 2, LLC, a Delaware
limited liability company, NNN WESTERN PLACE 3, LLC, a Delaware limited liability company, NNN
WESTERN PLACE 4, LLC, a Delaware limited liability company, NNN WESTERN PLACE 5, LLC, a Delaware
limited liability company, NNN WESTERN PLACE 6, LLC, a Delaware limited liability company, NNN
WESTERN PLACE 7, LLC, a Delaware limited liability company, and GREIT — WESTERN PLACE, LP, a Texas
limited partnership (individually and collectively, the “Borrower”), GARY H. HUNT, W. BRAND
INLOW, EDWARD A. JOHNSON, D. FLEET WALLACE, and GARY T. WESCOMBE, as Trustees of the G REIT
Liquidating Trust dated January 22, 2008, and NNN REALTY ADVISORS, INC., a Delaware corporation
(individually and collectively, “Indemnitor”), as a condition of, and to induce WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”), to make, a loan (the
“Loan”) to Borrower evidenced or to be evidenced by a Promissory Note of even date
herewith, made by Borrower payable to the order of Lender in the face principal amount of
$28,000,000.00 (the “Note”). The Loan is secured or to be secured by a Deed of Trust,
Assignment, Security Agreement and Fixture Filing (the “Deed of Trust”) of even date
herewith, encumbering certain real and personal property as therein described (collectively, the
“Property”), including the land described in Exhibit A which is attached hereto and made a
part hereof.

     1. Certain Definitions. As used in this Agreement:

          “Claim” means any controversy or claim between one or more Obligors and Lender,
whether arising in contract or tort or by statute, that arises out of or relates to this Agreement,
including any renewals, extensions or modifications hereof.

          “Cut-Off Date” means the earlier of the following two dates: (a) the date on which
the indebtedness and obligations secured by the Deed of Trust have been paid and performed in full
and the Deed of Trust has been released; or (b) the date on which the lien of the Deed of Trust is
fully and finally foreclosed or a conveyance by deed in lieu of such foreclosure is fully and
finally effective and possession of the Property has been given to and accepted by the purchaser or
grantee free of occupancy and claims to occupancy by Obligors and their heirs, devisees,
representatives, successors and assigns; provided, however, that if such payment, performance,
release, foreclosure or conveyance is challenged in proceedings under any Debtor Relief Law or
otherwise, the Cut-Off Date shall be deemed not to have occurred until such challenge is validly
released, dismissed with prejudice or otherwise barred by law from further assertion.

          “Debtor Relief Law” means any federal, state or local law, domestic or foreign, as now
or hereafter in effect relating to bankruptcy, insolvency, liquidation, receivership,
reorganization, arrangement, composition, extension or adjustment of debts, or any similar law
affecting the rights of creditors.

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          “Default” has the meaning ascribed to such term in the Deed of Trust and includes any
breach of any covenant, representation or warranty and any other default under this Agreement,
subject to any applicable notice and cure period.

          “Default Rate” has the meaning ascribed to such term in the Note.

          “Environmental Assessment” means a report (including all drafts thereof) of an
environmental assessment of the Property of such scope as may be requested by Lender or another
Indemnified Party, including the taking of soil borings and air and groundwater samples and other
above- and below-ground testing, by a consulting firm acceptable to such Indemnified Party and made
in accordance with the established guidelines of such Indemnified Party.

          “Environmental Claim” means any investigative, enforcement, cleanup, removal,
containment, remedial or other private or governmental or regulatory action at any time threatened,
instituted or completed pursuant to any applicable Environmental Requirement, against Borrower or
any Obligor, against or with respect to the Property or any condition, use or activity on the
Property (including any such action against any Indemnified Party), and any claim at any time
threatened or made by any person against any Obligor or against or with respect to the Property or
any condition, use or activity on the Property (including any such claim against any Indemnified
Party), relating to damage, contribution, cost recovery, compensation, loss or injury resulting
from or in any way arising in connection with any Hazardous Material or any Environmental
Requirement.

          “Environmental Damages” means all claims, demands, liabilities (including strict
liability), losses, damages (including consequential damages), causes of action, judgments,
penalties, fines, reasonable costs and expenses (including fees, costs and expenses of attorneys,
consultants, contractors, experts and laboratories), of any and every kind and character,
contingent or otherwise, matured or unmatured, known or unknown, foreseeable or unforeseeable,
made, incurred, suffered, brought, or imposed at any time and from time to time, and arising in
whole or in part from any of the following matters, regardless of whether caused by an Obligor or a
tenant or subtenant, or a prior owner of the Property or its tenant or subtenant, or any third
party:

     (a) The presence of any Hazardous Material on the Property, or any escape, seepage,
leakage, spillage, emission, release, discharge or disposal of any Hazardous Material on or
from the Property, or the migration or release or threatened migration or release of any
Hazardous Material to, from or through the Property, on or before the Cut-Off Date; or

     (b) Any act, omission, event or circumstance existing or occurring in connection with
the handling, treatment, containment, removal, storage, decontamination, cleanup, transport
or disposal of any Hazardous Material which is or was present on the Property on or before
the Cut-Off Date; or

     (c) The breach of any representation, warranty, covenant or agreement contained in this
Agreement because of any event or condition occurring or existing on or before the Cut-Off
Date; or

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     (d) Any violation relating to the Property on or before the Cut-Off Date, of any
Environmental Requirement in effect on or before the Cut-Off Date, regardless of whether any
act, omission, event or circumstance giving rise to the violation constituted a violation at
the time of the occurrence or inception of such act, omission, event or circumstance; or

     (e) Any Environmental Claim, or the filing or imposition of any environmental lien
against the Property, because of, resulting from, in connection with, or arising out of any
of the matters referred to in the preceding clauses (a) through (d).

     Without limiting the generality of the foregoing, “Environmental Damages” includes:
(i) the investigation or remediation of any such Hazardous Material or violation of any such
Environmental Requirement, including the preparation of any feasibility studies or reports and the
performance of any cleanup, remediation, removal, response, abatement, containment, closure,
restoration, monitoring or similar work required by any Environmental Requirement or necessary to
have full use and benefit of the Property as contemplated by the Loan Documents (including any of
the same in connection with any foreclosure action or transfer in lieu thereof); (ii) injury or
damage to any person, property or natural resource occurring on or off the Property, including the
cost of demolition and rebuilding of any improvements on real property; (iii) all liability to pay
or indemnify any person or governmental authority for costs expended in connection with any of the
matters included within this definition of Environmental Damages; (iv) the investigation and
defense of any claim, whether or not such claim is ultimately defeated; and (v) the settlement of
any claim or judgment.

          “Environmental Law” means any federal, state or local law, statute, ordinance, code,
rule, regulation, license, authorization, decision, order, injunction, decree, or rule of common
law, and any judicial interpretation of any of the foregoing, which pertains to health or safety
(as they relate to natural resources or the environment), any Hazardous Material, or the
environment (including ground or air or water or noise pollution or contamination, and underground
or aboveground tanks) and shall include the Solid Waste Disposal Act, 42 U.S.C. § 6901 et seq.; the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et
seq. (“CERCLA”), as amended by the Superfund Amendments and Reauthorization Act of 1986
(“SARA”); the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq.; the Federal
Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.;
the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Safe Drinking Water Act, 42 U.S.C.
§ 300f et seq.; and any other state or federal environmental statutes, and all rules, regulations,
orders and decrees now or hereafter promulgated under any of the foregoing, as any of the foregoing
now exist or may be changed or amended or come into effect in the future.

          “Environmental Requirement” means any Environmental Law, agreement or restriction, as
the same now exists or may be changed or amended or come into effect in the future, which pertains
to health or safety (as they relate to natural resources or the environment), any Hazardous
Material, or the environment, including ground, air, water or noise pollution or contamination, and
underground or aboveground tanks.

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          “Hazardous Material” means any substance, whether solid, liquid or gaseous: (a) which
is listed, defined or regulated as a “hazardous substance”, “hazardous waste” or “solid waste”, or
otherwise classified as hazardous or toxic, in or pursuant to any Environmental Requirement; or (b)
which is or which contains asbestos, radon, any polychlorinated biphenyl, urea formaldehyde foam
insulation, explosive or radioactive material, or motor fuel or other petroleum hydrocarbons; or
(c) which causes or poses a threat to cause a contamination or nuisance on the Property or any
adjacent property or a hazard to the environment or to the health or safety of persons on the
Property.

          “Indemnified Party” means each of the following persons and entities: (a) Lender or
any subsequent holder of the Note; (b) Trustee; (c) any persons or entities owned or controlled by,
owning or controlling, or under common control or affiliated with, Lender, any subsequent holder of
the Note, and/or Trustee; (d) any participants and co-lenders in the Loan; (e) the directors,
officers, partners, employees, attorneys and agents of each of the foregoing persons and entities;
and (f) the heirs, personal representatives, successors and assigns of each of the foregoing
persons and entities.

          “Loan Documents” has the meaning ascribed to such term in the Deed of Trust.

          “Obligor” means any individual Borrower or Indemnitor and “Obligors” means
some or all of the persons and entities comprising Borrower and/or Indemnitor, collectively.

          “On” or “on”, when used with respect to the Property or any property adjacent
to the Property, means “on, in, under, above or about.”

          “Trustee” means the Trustee under the Deed of Trust.

     2. Representations and Warranties. Each Obligor hereby represents and warrants to,
and covenants with, Lender, that, except as disclosed in that certain Phase 1 Environmental Site
Assessment Report provided to Lender in connection with the closing of the Loan, as of the date of
recordation of the Deed of Trust:

          (a) During the period of Borrower’s ownership of the Property, the Property has not been used
for industrial or manufacturing purposes, for landfill, dumping or other waste disposal activities
or operations, for generation, storage, use, sale, treatment, processing, recycling or disposal of
any Hazardous Material, for underground or aboveground storage tanks, or for any other use that
could give rise to the release of any Hazardous Material on the Property; to the best of Obligors’
knowledge, no such use of the Property occurred at any time prior to the period of Borrower’s
ownership of the Property; and to the best of Obligors’ knowledge, no such use on any adjacent
property occurred at any time prior to the date hereof;

          (b) To the best of Obligors’ knowledge, there is no Hazardous Material, storage tank (or
similar vessel) whether underground or otherwise, sump or well currently on the Property;

          (c) Obligors have received no written notice and have no knowledge of any Environmental Claim
or any completed, pending or proposed or threatened investigation or inquiry concerning the
presence or release of any Hazardous Material on the Property or any

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adjacent property or concerning whether any condition, use or activity on the Property or any
adjacent property is in violation of any existing Environmental Requirement;

          (d) To the best of Obligors’ knowledge, the present conditions, uses and activities of and on
the Property do not violate any existing Environmental Requirement and the use of the Property
which Borrower (and each tenant and subtenant, if any) makes and intends to make of the Property
complies and will comply with all applicable existing Environmental Requirements;

          (e) The Property does not appear on and to the best of Obligors’ knowledge has never been on
the National Priorities List, any federal or state “superfund” or “superlien” list,
or any other list or database of properties maintained by any local, state or federal agency or
department showing properties which are known to contain or which are suspected of containing a
Hazardous Material;

          (f) To the best of Obligors’ knowledge, no action has been taken to designate the Property as
a hazardous waste property or border zone property or otherwise to restrict the land use of the
Property (including through a moratorium on new land uses), nor does any Obligor know of any basis
for such designation or other restriction;

          (g) Obligors have never applied for and been denied environmental impairment liability
insurance coverage relating to the Property; and

          (h) No Obligor, and to Obligors’ knowledge no tenant or subtenant, has obtained or is required
to obtain any permit or authorization to construct, occupy, operate, use or conduct any activity on
any of the Property by reason of any existing Environmental Requirement.

     3. Violations. Prior to the Cut-Off Date, Obligors will not cause, commit, permit or
allow to continue any violation of any Environmental Requirement (a) by any person or entity,
including any Obligor, or (b) by or with respect to the Property or any use of or activity on the
Property. In addition, Obligors will not cause, permit or allow to continue the attachment of any
environmental lien to the Property. Obligors will not place, install, dispose of or release, or
cause, permit, or allow the placing, installation, disposal, spilling, leaking, dumping or release
of, any Hazardous Material or storage tank (or similar vessel) on the Property and will keep the
Property free of Hazardous Material. Notwithstanding the foregoing provisions of this Section
3, Obligors shall not be in Default under this Section 3 should Obligors store minimal
quantities of substances on the Property which technically could be considered Hazardous Material;
provided that such substances are of a type and are held only in a quantity normally used in
connection with the construction, occupancy or operation of comparable buildings (such as cleaning
fluids and supplies normally used in the day-to-day operation of business offices), and such
substances are being held, stored and used in compliance with all applicable Environmental
Requirements. The indemnity in Section 6 of this Agreement shall always apply to such
substances, and it shall be and continue to be the responsibility of Obligors to take all remedial
actions required under and in accordance with Section 5 of this Agreement in the event of
any unlawful release of any such substance.

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     4. Notice to Lender. Obligors shall promptly deliver to Lender a copy of each report
pertaining to the Property or to any Obligor prepared by or on behalf of any Obligor pursuant to
any Environmental Requirement. Obligors shall promptly advise Lender in writing of any
Environmental Claim or of the discovery of any Hazardous Material on the Property as soon as any
Obligor first obtains knowledge thereof, including a full description of the nature and extent of
the Environmental Claim and/or Hazardous Material and all relevant circumstances.

     5. Remedial Actions.

          (a) Except as permitted under Section 3 above, if any Hazardous Material is discovered
on the Property at any time, prior to the Cut-Off Date, and regardless of the cause, Obligors shall
promptly at Obligors’ sole risk and expense and solely under the names of Obligors or any of them:
(i) remove, treat, and dispose of the Hazardous Material in compliance with all applicable
Environmental Requirements, or if such removal is prohibited by any Environmental Requirement, take
whatever action as is required by any Environmental Requirement; and (ii) take such other action as
is necessary to have the full use and benefit of the Property as contemplated by the Loan
Documents. Obligors at their sole expense shall provide Lender with satisfactory evidence of the
actions taken as required in this clause (a). Obligors shall provide to Lender within thirty (30)
days of Lender’s request a bond, letter of credit or other financial assurance evidencing to
Lender’s satisfaction that all necessary funds are readily available to pay the costs and expenses
of the actions required by this clause (a) and to discharge any assessments or liens established
against the Property as a result of the presence of the Hazardous Material on the Property.

          (b) All remedial actions shall be conducted (i) in a diligent and timely fashion by licensed
contractors acting under the supervision of a consultant or consulting environmental engineer, and
(ii) in accordance with all Environmental Requirements and all other applicable governmental
requirements. The selection of the contractors and consultant or consulting environmental engineer
for the remedial actions, the contracts entered into with such parties, any disclosures to or
agreements with any public or private agencies or parties relating to the remedial actions and any
written plan for the remedial actions (and any changes thereto) shall each, at the option of
Lender, be subject to the prior written approval of Lender, which approval shall not be
unreasonably withheld, conditioned or delayed. Within fifteen (15) days after completion of such
remedial actions, Obligors shall obtain and deliver to Lender an Environmental Assessment of the
Property made after such completion which shall confirm to Lender’s satisfaction that all required
remedial action as stated above has been taken and successfully completed and that there is no
evidence or suspicion of any contamination or risk of contamination on the Property or any adjacent
property or of violation of any Environmental Requirement with respect to any such Hazardous
Material.

          (c) After the occurrence and during the continuance of a Default, Lender may, but shall never
be obligated to, remove or cause the removal of any Hazardous Material from the Property (or if
removal is prohibited by any Environmental Requirement, take or cause the taking of such other
action as is required by any Environmental Requirement) if Obligors fail to promptly commence such
remedial actions following discovery and thereafter diligently prosecute the same to the
satisfaction of Lender (without limitation of Lender’s rights to declare a Default under any of the
Loan Documents and to exercise all rights and remedies available by

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reason thereof). After the occurrence and during the continuance of a Default, Lender and its
designees are hereby granted access to the Property at any time or times, upon reasonable notice
(which may be written or oral), and a license which is coupled with an interest and irrevocable, to
remove or cause such removal or to take or cause the taking of any such other action.

     6. Indemnity. OBLIGORS HEREBY AGREE TO PROTECT, INDEMNIFY, DEFEND AND HOLD
INDEMNIFIED PARTIES AND EACH OF THEM HARMLESS FROM AND AGAINST, AND, IF AND TO THE EXTENT PAID, TO
REIMBURSE THEM ON DEMAND FOR, ANY AND ALL ENVIRONMENTAL DAMAGES. WITHOUT LIMITATION, THE FOREGOING
INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PARTY WITH RESPECT TO ENVIRONMENTAL DAMAGES WHICH IN
WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF SUCH (AND/OR ANY OTHER)
INDEMNIFIED PARTY. HOWEVER, SUCH INDEMNITY SHALL NOT APPLY TO (a) A PARTICULAR INDEMNIFIED PARTY
TO THE EXTENT THAT THE SUBJECT OF THE INDEMNIFICATION IS CAUSED BY OR ARISES OUT OF THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF THAT PARTICULAR INDEMNIFIED PARTY, OR (b) ENVIRONMENTAL DAMAGES
CREATED OR ARISING SOLELY FROM EVENTS OR CONDITIONS FIRST EXISTING AFTER A FORECLOSURE SALE UNDER
THE DEED OF TRUST (OR A DEED IN LIEU THEREOF), BUT ONLY IF A PARTY OTHER THAN OBLIGORS OR AN
AFFILIATE OF ANY OBLIGOR ACQUIRES TITLE TO THE PROPERTY, PROVIDED THAT ANY SUCH ENVIRONMENTAL
DAMAGES DO NOT DIRECTLY OR INDIRECTLY ARISE FROM OR RELATE TO ANY RELEASE OF OR EXPOSURE TO ANY
HAZARDOUS MATERIALS (INCLUDING PERSONAL INJURY OR DAMAGE TO PROPERTY), NONCOMPLIANCE WITH ANY
ENVIRONMENTAL LAWS, OR REMEDIATION EXISTING PRIOR TO THE EVENT DESCRIBED ABOVE. In any dispute
between Obligors and Lender as to whether Obligors are released from liability pursuant to the
immediately preceding sentence, Obligors shall bear the burden of proof with respect to whether
they have been released from liability. Upon demand by any Indemnified Party, Obligors shall
diligently defend any Environmental Claim which affects the Property or which is made or commenced
against such Indemnified Party, whether alone or together with Obligors or any other person, all at
Obligors’ own cost and expense and by counsel to be approved by such Indemnified Party in the
exercise of its reasonable judgment. In the alternative, at any time any Indemnified Party may
elect to conduct its own defense through counsel selected by such Indemnified Party and at the cost
and expense of Obligors.

     7. Binding Obligations; Survival. The representations, warranties, covenants and
agreements in this Agreement shall be binding upon Obligors and their successors, assigns and legal
representatives and shall inure to the benefit of Indemnified Parties and each of them; provided,
however, that Obligors may not assign this Agreement, or assign or delegate any of their rights or
obligations under this Agreement, without the prior written consent of Lender in each instance.
The representations, warranties, covenants and agreements in this Agreement shall not terminate on
the Cut-Off Date or upon the release, foreclosure or other termination of the Deed of Trust, but
will survive the Cut-Off Date, the payment in full of the indebtedness secured by the Deed of
Trust, foreclosure of the Deed of Trust or conveyance in lieu of foreclosure, the release or
termination of the Deed of Trust and any and all of the other Loan Documents, any investigation by
or on behalf of any Indemnified Party, any proceeding under

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any Debtor Relief Law, and any other event whatsoever. Without limiting the generality of the
foregoing, the obligations of Obligors to indemnify Indemnified Parties under Section 6
after the Cut-Off Date shall be presumed, unless shown by a preponderance of evidence to the
contrary.

     8. Environmental Assessments. If any Indemnified Party shall ever have reason to
believe that any Hazardous Material affects the Property, or if any Environmental Claim is made or
threatened, or if a Default shall have occurred, or upon the occurrence of the Cut-Off Date if
requested by any Indemnified Party, Obligors shall at their expense provide to such Indemnified
Party from time to time, in each case within thirty (30) days after request by such Indemnified
Party, an Environmental Assessment made after the date of such request. Obligors will cooperate
with each consulting firm making any such Environmental Assessment and will supply to the
consulting firm, from time to time and promptly on request, all information available to Obligors
to facilitate the completion of the Environmental Assessment. If Obligors fail to furnish any
Indemnified Party within ten (10) days after such Indemnified Party’s request with a copy of an
agreement with an acceptable environmental consulting firm to provide such Environmental
Assessment, or if Obligors fail to furnish to any Indemnified Party such Environmental Assessment
within thirty (30) days after request by such Indemnified Party, the Indemnified Party may cause
any such Environmental Assessment to be made at Obligors’ expense and risk. Indemnified Parties
and their designees are hereby granted access to the Property at any time or times, upon reasonable
notice (which may be written or oral), and a license which is coupled with an interest and
irrevocable, to make or cause to be made such Environmental Assessments. Without limiting the
generality of the foregoing, Obligors agree that Indemnified Parties will have all rights, powers
and authority to enter and inspect the Property as is granted to the secured lender under
applicable law, and that any Indemnified Party will have the right to appoint a receiver to enter
and inspect the Property to the extent such authority is provided under applicable law. All
reasonable costs and expenses incurred by any Indemnified Party in connection with any
Environmental Assessment conducted in accordance with this Section 8 shall be paid by
Obligors. Indemnified Parties shall be under no duty to make any Environmental Assessment of the
Property, and in no event shall any such Environmental Assessment by any Indemnified Party be or
give rise to a representation that any Hazardous Material is or is not present on the Property, or
that there has been or shall be compliance with any Environmental Requirement, nor shall Obligors
or any other person be entitled to rely on any Environmental Assessment made by or at the request
of any Indemnified Party. Indemnified Parties owe no duty of care to protect Obligors or any other
person against, or to inform them of, any Hazardous Material or other adverse condition affecting
the Property.

     9. Information. The results of all investigations conducted and/or Environmental
Assessments prepared by or for any Indemnified Party shall be and at all times remain the property
of the Indemnified Party and under no circumstances shall any Indemnified Party have any obligation
whatsoever to disclose or otherwise make available to Obligors or any other party such results or
any other information obtained by any Indemnified Party in connection with such investigations and
reports. Notwithstanding the foregoing, Indemnified Parties hereby reserve the right, and Obligors
hereby expressly authorize any Indemnified Party, to make available to any party (including any
governmental agency or authority and any prospective bidder at any foreclosure sale of the
Property) any and all Environmental Assessments that any Indemnified Party may have with respect to
the Property. Obligors consent to Indemnified Parties notifying any party (either as part of a
notice of sale or otherwise) of the availability of any or all of the

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Environmental Assessments and the information contained therein. Obligors acknowledge that
Indemnified Parties cannot control or otherwise assure the truthfulness or accuracy of the
Environmental Assessments, and further acknowledge that the release of the Environmental
Assessments, or any information contained therein, to prospective bidders at any foreclosure sale
of the Property may have a material and adverse effect upon the amount that a party may bid at such
sale. Obligors agree that Indemnified Parties shall have no liability whatsoever as a result of
delivering any or all of the Environmental Assessments or any information contained therein to any
third party, and Obligors hereby release and forever discharge Indemnified Parties from any and all
claims, damages, or causes of action, arising out of, connected with or incidental to the
Environmental Assessments or the delivery thereof.

     10. Cross-Default with Loan Documents. Any Default under this Agreement shall
constitute a Default under the Loan Documents. In addition, any Default under any of the Loan
Documents shall constitute a Default hereunder.

     11. Payable on Demand; Remedies. Any amounts to be paid under this Agreement by
Obligors (or any of them) from time to time shall be payable by Obligors within ten (10) business
days after demand by Lender or any other Indemnified Party. In addition to any other rights or
remedies Lender may have under this Agreement, at law or in equity, upon the occurrence of a
Default under this Agreement, Lender may (a) pursue any remedies available to it under applicable
law, and/or (b) subject to the terms and conditions of this Agreement, do or cause to be done
whatever is necessary to cause the Property to comply with all Environmental Requirements, and the
cost thereof shall become immediately due and payable upon demand by Lender, and if not paid when
due shall accrue interest at the Default Rate until paid. Without limiting any other rights or
remedies of Lender, Obligors acknowledge and agree that Obligors’ failure to comply with the terms
of this Agreement shall be a breach of contract such that Lender shall have the remedies provided
under applicable law for the recovery of damages and for the enforcement thereof. Lender’s action
for the recovery of damages or enforcement of this Agreement shall not constitute an action or
constitute a money judgment for a deficiency or a deficiency judgment.

     12. Unsecured Agreement; Not a Loan Document; Cumulative Rights. This Agreement is
not secured by the Deed of Trust or any other Loan Document or any collateral whatsoever. This
Agreement is not one of the Loan Documents. Obligors and Lender intend for this Agreement to serve
as Lender’s written demand and Obligors’ response concerning the environmental condition of the
Property. The liability of Obligors or any other person under this Agreement shall not be limited
or impaired in any way by any provision in the Loan Documents or applicable law limiting Obligors’
or such other person’s liability or Lender’s recourse or rights to a deficiency judgment, or by any
change, extension, release, inaccuracy, breach or failure to perform by any party under the Loan
Documents, Obligors’ (and, if applicable, such other person’s) liability hereunder being direct and
primary and not as a guarantor or surety. Nothing in this Agreement or in any Loan Document shall
limit or impair any rights or remedies of Lender and/or any other Indemnified Party against any
Obligor or any other person under any Environmental Requirement or otherwise at law or in equity,
including any rights of contribution or indemnification.

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     13. Consideration. Obligors acknowledge that Lender has relied and will rely on the
representations, warranties, covenants and agreements herein in closing and funding the Loan and
that the execution and delivery of this Agreement is an essential condition but for which Lender
would not close or fund the Loan.

     14. No Waiver. No delay or omission by any Indemnified Party to exercise any right
under this Agreement shall impair any such right nor shall it be construed to be a waiver thereof.
No waiver of any single breach or default under this Agreement shall be deemed a waiver of any
other breach or default. Any waiver, consent or approval under this Agreement must be in writing
to be effective.

     15. Notices. All notices, requests, consents, demands and other communications
required or which any party desires to give hereunder shall be in writing (including, without
limitation, telecopy, telegraphic, telex, or cable communication) and shall be deemed sufficiently
given or furnished if delivered by personal delivery, by courier, or by registered or certified
United States mail, postage prepaid, addressed to the party to whom directed at the addresses
specified at the end of this Agreement (unless changed by similar notice in writing given by the
particular party whose address is to be changed) or by telegram, telex, or facsimile. Any such
notice or communication shall be deemed to have been given either at the time of personal delivery
or, in the case of courier or mail, as of the date of first attempted delivery at the address and
in the manner provided herein, or, in the case of telegram, telex or facsimile, upon receipt;
provided, that service of a notice required by any applicable statute shall be considered complete
when the requirements of that statute are met. Notwithstanding the foregoing, no notice of change
of address shall be effective except upon actual receipt. This Section 15 shall not be
construed in any way to affect or impair any waiver of notice or demand provided in any Loan
Document or to require giving of notice or demand to or upon any person in any situation or for any
reason.

     16. Invalid Provisions. A determination that any provision of this Agreement is
unenforceable or invalid shall not affect the enforceability or validity of any other provision and
a determination that the application of any provision of this Agreement to any person or
circumstance is illegal or unenforceable shall not affect the enforceability or validity of such
provision as it may apply to other persons or circumstances.

     17. Construction. Whenever in this Agreement the singular number is used, the same
shall include plural where appropriate, and vice versa; and words of any gender in this Agreement
shall include each other gender where appropriate. The headings in this Agreement are for
convenience only and shall be disregarded in the interpretation hereof. Reference to
“person” or “entity” means firms, associations, partnerships, joint ventures,
trusts, limited liability companies, corporations and other legal entities, including public or
governmental bodies, agencies or instrumentalities, as well as natural persons. The words
“include” and “including” shall be interpreted as if followed by the words
“without limitation.”

     18. Joint and Several Liability and Waivers by Obligors.

          (a) Each Obligor agrees that it is jointly and severally liable to Indemnified Parties for the
payment of all obligations arising under this Agreement, and that such liability is

-10-

 

independent of the obligations of the other Obligors. Any Indemnified Party may bring an
action against any Obligor, whether or not any action is brought against the other Obligors.

          (b) Each Obligor agrees that any release which may be given by any Indemnified Party to the
other Obligors will not release such Obligor from its obligations under this Agreement.

          (c) Each Obligor waives any right to assert against any Indemnified Party any defense, setoff,
counterclaim, or claims which such Obligor may have against the other Obligors or any other party
liable to Indemnified Parties or any of them for the obligations of Obligors under this Agreement.

          (d) Each Obligor agrees that it is solely responsible for keeping itself informed as to the
financial condition of the other Obligors and of all circumstances which bear upon the risk of
nonpayment. Each Obligor waives any right it may have to require Indemnified Parties to disclose
to such Obligor any information which Indemnified Parties or any of them may now or hereafter
acquire concerning the financial condition of the other Obligors.

          (e) Each Obligor waives all rights to notices of acceptance of this Agreement and further
waives all rights to notices of default or nonperformance by any other Obligor under this
Agreement.

          (f) Each Obligor waives any right of subrogation, reimbursement, indemnification and
contribution (contractual, statutory or otherwise), including any claim or right of subrogation
under any Debtor Relief Law, which such Obligor may now or hereafter have against any other Obligor
or any other person with respect to the obligations incurred under this Agreement. Each Obligor
waives any right to enforce any remedy that any Indemnified Party now has or may hereafter have
against any other Obligor.

     19. Indemnitor Waivers. Indemnitor waives:

          (a) All statutes of limitations as a defense to any action or proceeding brought against
Indemnitor by any Indemnified Party, to the fullest extent permitted by law;

          (b) Any right it may have to require Indemnified Party to proceed against Borrower, proceed
against or exhaust any security held from Borrower, or pursue any other remedy in any Indemnified
Party’s power to pursue;

          (c) Any defense based on any claim that Indemnitor’s obligations exceed or are more burdensome
than those of Borrower;

          (d) Any defense based on: (i) any legal disability of Borrower, (ii) any release, discharge,
modification, impairment or limitation of the liability of Borrower to any Indemnified Party from
any cause, whether consented to by any Indemnified Party or arising by operation of law or from any
bankruptcy or other voluntary or involuntary proceeding, in or out of court, for the adjustment of
debtor-creditor relationships (“Insolvency Proceeding”) and (iii) any rejection or
disaffirmance of the Loan, or any part of it, or any security held for it, in any such Insolvency
Proceeding;

-11-

 

          (e) Any defense based on any action taken or omitted by any Indemnified Party in any
Insolvency Proceeding involving Borrower, including any election to have any Indemnified Party’s
claim allowed as being secured, partially secured or unsecured, any extension of credit by any
Indemnified Party to Borrower in any Insolvency Proceeding, and the taking and holding by any
Indemnified Party of any security for any such extension of credit;

          (f) All presentments, demands for performance, notices of nonperformance, protests, notices of
protest, notices of dishonor, notices of acceptance of this Agreement and of the existence,
creation, or incurring of new or additional indebtedness, and demands and notices of every kind;
and

          (g) Any defense based on or arising out of any defense that Borrower may have to the payment
or performance of the Loan or any part of it.

     20. Waivers of Subrogation and Other Rights.

          (a) Upon a default by Borrower, Lender in its sole discretion, without prior notice to or
consent of Indemnitor, may elect to: (i) foreclose either judicially or nonjudicially against any
real or personal property security it may hold for the Loan, (ii) accept a transfer of any such
security in lieu of foreclosure, (iii) compromise or adjust the Loan or any part of it or make any
other accommodation with Borrower or Indemnitor, or (iv) exercise any other remedy against Borrower
or any security. No such action by Lender shall release or limit the liability of Indemnitor, each
of whom shall remain liable under this Agreement after the action, even if the effect of the action
is to deprive Indemnitor of any subrogation rights, rights of indemnity, or other rights to collect
reimbursement from Borrower for any sums paid to any Indemnified Party, whether contractual or
arising by operation of law or otherwise. Indemnitor expressly agrees that under no circumstances
shall it be deemed to have any right, title, interest or claim in or to any real or personal
property to be held by any Indemnified Party or any third party after any foreclosure or transfer
in lieu of foreclosure of any security for the Loan.

          (b) Regardless of whether Indemnitor may have made any payments to any Indemnified Party,
Indemnitor forever waives: (i) all rights of subrogation, all rights of indemnity, and any other
rights to collect reimbursement from Borrower for any sums paid to any Indemnified Party, whether
contractual or arising by operation of law (including the United States Bankruptcy Code or any
successor or similar statute) or otherwise, (ii) all rights to enforce any remedy that any
Indemnified Party may have against Borrower, and (iii) all rights to participate in any security
now or later to be held by any Indemnified Party for the Loan.

          (c) Indemnitor understands and acknowledges that if Lender forecloses judicially or
nonjudicially against any real property security for the Loan, that foreclosure could impair or
destroy any ability that Indemnitor may have to seek reimbursement, contribution or indemnification
from Borrower or others based on any right Indemnitor may have of subrogation, reimbursement,
contribution or indemnification for any amounts paid by Indemnitor under this Indemnity.
Indemnitor further understands and acknowledges that in the absence of the provisions of this
Indemnity, such potential impairment or destruction of Indemnitor’s rights, if any, may entitle
Indemnitor to assert a defense to this Indemnity. By executing this Agreement, Indemnitor freely,
irrevocably and unconditionally: (i) waives and relinquishes that

-12-

 

defense and agrees that Indemnitor will be fully liable under this Agreement even though
Lender may foreclose judicially or nonjudicially against any real property security for the Loan;
(ii) agrees that Indemnitor will not assert that defense in any action or proceeding which any
Indemnified Party may commence to enforce this Agreement; (iii) acknowledges and agrees that the
rights and defenses waived by Indemnitor under this Agreement include any right or defense that
Indemnitor may have or be entitled to assert; and (iv) acknowledges and agrees that Lender is
relying on this waiver in making the Loan, and that this waiver is a material part of the
consideration which Lender is receiving for making the Loan.

          (d) Indemnitor waives Indemnitor’s rights of subrogation and reimbursement and any other
rights and defenses available to Indemnitor, including, without limitation, (i) any defenses
Indemnitor may have to the indemnity obligation by reason of an election of remedies by Lender and
(ii) any rights or defenses Indemnitor may have by reason of protection afforded to the Borrower
with respect to the obligation so guaranteed pursuant to the antideficiency or other laws of Texas
limiting or discharging the Borrower’s indebtedness.

          (e) Indemnitor waives all rights and defenses arising out of an election of remedies by any
Indemnified Party, even though that election of remedies, such as a nonjudicial foreclosure with
respect to security for a guaranteed obligation, has destroyed any Indemnitor’s rights of
subrogation and reimbursement against the Borrower.

          (f) No provision or waiver in this Indemnity shall be construed as limiting the generality of
any other waiver contained in this Indemnity.

     21. Additional Waivers. Indemnitor waives all rights and defenses that Indemnitor may
have because Borrower’s debt is secured by real property. This means, among other things:

          (a) Lender may collect from Indemnitor without first foreclosing on any real or personal
property collateral pledged by Borrower.

          (b) If Lender forecloses on any real property collateral pledged by Borrower:

          (1) The amount of the debt may be reduced only by the price for which that
collateral is sold at the foreclosure sale, even if the collateral is worth more
than the sale price.

          (2) Lender may collect from Indemnitor even if Lender, by foreclosing on the
real property collateral, has destroyed any right Indemnitor may have to collect
from Borrower.

This is an unconditional and irrevocable waiver of any rights and defenses Indemnitor may have
because Borrower’s debt is secured by real property.

     22. Applicable Law. The laws of the State of Texas and applicable United States
federal law shall govern the rights and duties of the parties hereto and the validity, enforcement
and interpretation hereof.

-13-

 

     23. Lender Assigns; Disclosure of Information. Lender may, at any time, sell,
transfer, or assign the Loan and any and all servicing rights with respect thereto, or grant
participations therein or issue mortgage pass-through certificates or other securities evidencing a
beneficial interest in a rated or unrated public offering or private placement. In the event of
any such sale, transfer or assignment of the Loan or any part thereof, the rights and benefits
under this Agreement may be transferred therewith to the extent applicable to the Loan or part
thereof being sold, transferred or assigned. Obligors waive notice of any sale, transfer or
assignment of the Loan or any part thereof, and agree that failure to give notice of any such sale,
transfer or assignment will not affect the liabilities of Obligors hereunder. Lender is hereby
authorized to disseminate any information it now has or hereafter obtains pertaining to the
Property or this Agreement, including credit and/or other information on Obligors and/or any party
liable, directly or indirectly, for any part of the obligations under this Agreement, to any actual
or prospective assignee or participant with respect to the Loan, to any of Lender’s affiliates, to
any regulatory body having jurisdiction over Lender, and to any other parties as necessary or
appropriate in Lender’s reasonable judgment.

     24. Execution; Modification. This Agreement may be executed in any number of
identical counterparts, each of which shall be deemed an original for all purposes and all of which
constitute, collectively, one agreement. This Agreement may be amended only by an instrument in
writing intended for that purpose executed jointly by an authorized representative of each party
hereto.

     25. WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, OBLIGORS AND
LENDER HEREBY WAIVE TRIAL BY JURY IN RESPECT OF ANY “CLAIM” AS DEFINED IN SECTION 1. THIS
WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY OBLIGORS AND LENDER, AND OBLIGORS AND LENDER
HEREBY REPRESENT THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY
TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT. OBLIGORS AND
LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION 25 IN ANY PROCEEDING AS
CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL. EACH OBLIGOR FURTHER REPRESENTS AND WARRANTS
THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL
COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER
WITH COUNSEL.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-14-

 

     THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     EXECUTED and DELIVERED as of the day and year first written above.

	 	 	 	 	 	 	 
	BORROWER:	 	NNN WESTERN PLACE, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 
	The address of Borrower is:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	NNN Western Place, LLC

	 	By:
	 	NNN Western Place Manager, LLC, a
	 	 
	NNN Western Place 1, LLC

	 	 	 	Delaware limited liability company, its	 	 
	NNN Western Place 2, LLC

	 	 	 	Manager	 	 
	NNN Western Place 3, LLC
	 	 	 	 	 	 
	NNN Western Place 4, LLC

	 	By:
	 	Grubb & Ellis Realty Investors, LLC, a	 	 
	NNN Western Place 5, LLC

	 	 	 	Virginia limited liability company, its	 	 
	NNN Western Place 6, LLC

	 	 	 	Manager	 	 
	NNN Western Place 7, LLC
	 	 	 	 	 	 
	GREIT — Western Place, LP

	 	By:
	 	/s/ Jeffrey T. Hanson
 

	 	  
	c/o Grubb & Ellis Realty

	 	 	 	Name: Jeffrey T. Hanson	 	 
	Investors, LLC

	 	 	 	Title: Chief Investment Officer	 	 
	1551 N. Tustin Avenue, Suite 300
	 	 	 	 	 	 
	Santa Ana, California 92705
	 	 	 	 	 	 
	Attn: Scott Peters
	 	 	 	 	 	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 1, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 

S-1 

 

	 	 	 	 	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 2, LLC, a Delaware limited

liability company

 	 
	 	By:  	 Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 3, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 4, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 5, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 

S-2 

 

	 	 	 	 	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 6, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

	 	 	 	 	 
	 	NNN WESTERN PLACE 7, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia
 	 
	 	 	limited liability company, its Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                      /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

	 	 	 	 	 
	 	GREIT — WESTERN PLACE, LP, a Texas limited

partnership

 	 
	 	By:  	GREIT — Western Place GP, LLC, a Delaware
 	 
	 	 	limited liability company, its General Partner 	 
	 	 	 	 
	 
	 	By:  	G REIT Liquidating Trust dated
 	 
	 	 	January 22, 2008, a Maryland Trust, 	 
	 	 	its Sole Member and Manager 	 
	 
	 	By:  	 Gary H. Hunt, W. Brand Inlow,
 	 
	 	 	Edward A. Johnson, D. Fleet 	 
	 	 	Wallace, and Gary T. Wescombe, as

Trustees of the G REIT Liquidating

Trust dated January 22, 2008 	 
	 
	 	 	 
	 	By:  	                                      /s/ Andrea R. Biller
 	 
	 	 	Name:  	Andrea R. Biller 	 
	 	 	Title:  	Authorized Representative 	 

S-3 

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	INDEMNITOR:	 	G REIT LIQUIDATING TRUST DATED

JANUARY 22, 2008, a Maryland Trust	 	 
	The addresses of Indemnitor are:
	 	 	 	 	 	 
	 

	 	By:
	 	Gary H. Hunt, W. Brand Inlow,
	 	 
	G REIT LIQUIDATING TRUST

	 	 	 	Edward A. Johnson, D. Fleet	 	 
	NNN REALTY ADVISORS, INC.

	 	 	 	Wallace, and Gary T. Wescombe, as	 	 
	c/o Grubb & Ellis Realty Investors, LLC

	 	 	 	Trustees of the G REIT Liquidating	 	 
	1551 N. Tustin Avenue, Suite 300

	 	 	 	Trust dated January 22, 2008	 	 
	Santa Ana, California 92705
	 	 	 	 	 	 
	Attn: Andrea Biller

	 	By:
	 	/s/ Andrea R. Biller
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Andrea R. Biller

Title: Authorized Representative	 	 

	 	 	 	 	 
	 	NNN REALTY ADVISORS, INC., a Delaware

corporation

 	 
	 	By:  	/s/ Francene LaPoint
 	 
	 	 	Name:  	Francene LaPoint 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

The address for providing notices to

Lender is:

Wachovia Financial Services, Inc.

Real Estate Financial Services

General Banking Group

Mail Code: CA 6233

15750 Alton Parkway

Irvine, California 92618

Attn: Anne McNeil

S-4Exhibit 10.26

 

EXHIBIT 10.26

(Local Currency—Single Jurisdiction)

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of January 8, 2007

	 	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION

	 	and
	 	NNN Western Place, LLC, NNN
Western Place 1, LLC, NNN
Western Place 2, LLC, NNN
Western Place 3, LLC, NNN
Western Place 4, LLC, NNN
Western Place 5, LLC, NNN
Western Place 6, LLC, NNN
Western Place 7, LLC, and
GREIT-WESTERN PLACE, LP
(jointly and severally)

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 organised and validly existing under the laws of the jurisdiction of
its organisation 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
authorise 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,
reorganisation, 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 Authorisations. 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 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, authorisation, 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 a 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.

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.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION
(Name of Party)	 	 	 	SEE EXHIBIT A	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ John Miechkowski	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	John Miechkowski
	 	 	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	Director
	 	 	 	 	 	Title:	 	 	 	 

 

 

RIDER A

	 	 	 	 	 
	NNN WESTERN PLACE, LLC, a Delaware limited

liability company

 	 
	By:  	NNN Western Place Manager, LLC, a

Delaware limited liability company, its
 Manager
 	 
	 
	By:  	Grubb & Ellis Realty Investors, LLC, a

Virginia limited liability company, its 

Manager
 	 
	 
	By:  	                         /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Office 	 
	 
	NNN WESTERN PLACE 1, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia 

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 
	 
	NNN WESTERN PLACE 2, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 
	 
	NNN WESTERN PLACE 3, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 

 

 

	 	 	 	 	 
	NNN WESTERN PLACE 4, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 
	 
	NNN WESTERN PLACE 5, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 
	 
	NNN WESTERN PLACE 6, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 
	 
	NNN WESTERN PLACE 7, LLC, a Delaware limited

liability company

 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	Name:  	Jeffrey T. Hanson 	 
	 	Title:  	Chief Investment Officer 	 

 

 

	 	 	 	 	 
	GREIT — WESTERN PLACE, LP, a Texas limited

partnership

 	 
	By:  	GREIT — Western Place GP, LLC, a

Delaware limited liability company,

its General Partner
 	 
	 
	By:  	            G REIT Liquidating Trust dated

January 22, 2008, a Maryland Trust,

its Sole Member and Manager
 	 
	 
	By:  	 Gary H. Hunt, W. Brand Inlow,

Edward A. Johnson, D. Fleet

Wallace, and Gary T. Wescombe, as

Trustees of the G REIT Liquidating

Trust dated January 22, 2008
 	 
	 
	By:  	                                      /s/ Courtney A. Brower
 	 
	 	Name:  	Courtney A. Brower 	 
	 	Title:  	Authorized Representative 	 
	 

 

 

SCHEDULE

to the

MASTER AGREEMENT

dated as of January 8, 2008 between

WACHOVIA BANK, NATIONAL ASSOCIATION (“Party A”)

and

NNN WESTERN PLACE, LLC, NNN WESTERN PLACE 1, LLC, NNN WESTERN PLACE 2, LLC, NNN

WESTERN PLACE 3, LLC, NNN WESTERN PLACE 4, LLC, NNN WESTERN PLACE 5, LLC, NNN WESTERN

PLACE 6, LLC, NNN WESTERN PLACE 7, LLC, and GREIT-WESTERN PLACE, LP (jointly and severally “Party

B”)

Part 1. Termination Provisions

	(a)	 	“Specified Entity” means each party’s Affiliates for purposes of Section 5(a)(v).
	 
	(b)	 	“Specified Transaction” has its meaning as defined in Section 12.
	 
	(c)	 	“Cross Default” applies to both parties. With respect to Party B, “Cross Default” is amended
by inserting at the end of Section 5(a)(vi): “or (3) any default, event of default or other
similar condition or event (however described) under any existing or future agreement or
instrument relating to any loan or extension of credit from Party A (or any of its Affiliates)
to Party B (whether or not anyone else is a party thereto).”
	 
	 	 	“Specified Indebtedness” means any obligation (whether present, future, contingent or
otherwise, as principal or surety or otherwise) in respect of borrowed money or relating to
the payment or delivery of funds, securities or other property (including, without
limitation, collateral), other than indebtedness in respect of any bank deposits received in
the ordinary course of business by any foreign branch of a party the repayment of which is
prevented, hindered or delayed by any governmental or regulatory action or law unrelated to
the financial condition or solvency of such party or that foreign branch.
	 
	 	 	“Threshold Amount” means, with respect to Party A, an amount (including its equivalent in
another currency) equal to the higher of $10,000,000 or 2% of its stockholders’ equity as
reflected on its most recent financial statements or call reports, and with respect to Party
B, any amount of Specified Indebtedness.
	 
	(d)	 	“Credit Event Upon Merger” applies to both parties.
	 
	(e)	 	“Automatic Early Termination” does not apply to either party.
	 
	(f)	 	Payments on Early Termination. Except as otherwise provided herein, “Market Quotation” and
the “Second Method” apply, provided that with respect to the following types of Transactions,
a Market Quotation shall not be determined or included under clause (a) of the definition of
Settlement Amount, and instead a “Loss” shall be determined and included under clause (b) of
the definition of Settlement Amount with respect to the following types of Transactions: any
Transactions which are commodity swaps, commodity options, commodity forwards or any other
commodity derivative transactions.
	 
	 	 	In the case of any Terminated Transaction that is, or is subject to, any unexercised option,
the words “economic equivalent of any payment or delivery” appearing in the definition of
“Market Quotation” shall be construed to take into account the economic equivalent of the
option.
	 
	(g)	 	“Additional Termination Event” does not apply to either party.

Part 2. Tax Provisions

	(a)	 	Tax Representations.

(i) Party A represents at all times hereunder that (A) it is a national banking association
organized or formed under the laws of the United States, and (B) it is a United States
resident for United States federal income tax purposes.

(ii) Party B represents at all times hereunder that (A) it is organized or formed under the
laws of a state within the

1

 

United States, and (B) it is (or, if Party B is disregarded for United States federal income
tax purposes, its beneficial owner is) a United States resident for United States federal
income tax purposes.

	(b)	 	Tax Forms.

(i) Each party agrees to deliver to the other party the tax forms specified below with
respect to it at the following times: before the first Payment Date under this Agreement;
promptly upon reasonable demand by the other party; and promptly upon learning that any such
form previously provided by the party has become obsolete or incorrect.

	 	(A)	 	Tax Forms to be Delivered by Party A:

None specified.

	 	(B)	 	Tax forms to be Delivered by Party B:

(I) If Party B is (or, if Party B is disregarded for United States federal income tax
purposes, its beneficial owner is) treated as a corporation for United States federal
income tax purposes whose name includes “Incorporated”, “Inc.”, “Corporation”,
“P.C.”, “Insurance Company” “Indemnity Company”, “Reinsurance Company”, or
“Assurance Company”:

None specified, unless any amount payable to Party B under this Agreement is to be
paid to an account outside the United States, in which case the tax form to be
delivered by Party B shall be a correct, complete and duly executed U.S. Internal
Revenue Service Form W-9 (or successor thereto) that eliminates U.S. federal backup
withholding tax on payments to Party B under this Agreement.

(II) In all other cases:

A correct, complete and duly executed U.S. Internal Revenue Service Form W-9 (or
successor thereto) that eliminates U.S. federal backup withholding tax on payments to
Party B under this Agreement.

(ii) In addition, each party agrees to deliver to the other party, upon reasonable demand by
such other party, any other tax form that may be required or reasonably requested in writing
in order to allow such other party to make a payment under this Agreement (or under any
Credit Support Document) without any deduction or withholding for or on account of any tax
imposed by any government or other taxing authority in respect of any such payment (other
than a stamp, registration, documentation or similar tax), or with such deduction or
withholding at a reduced rate, which form shall be correct, complete and duly executed.

	(c)	 	Withholding Tax Liability. A breach of a representation under paragraph (a) above, or a
failure to deliver a required tax form in accordance with paragraph (b) above, by a party
hereunder (the “defaulting payee”) may result in a tax liability on the part of the other
party (the “payor”), as required by the United States Internal Revenue Code and regulations
thereunder, for withholding or backup withholding on any payment by the payor to the
defaulting payee under this Agreement (or under any Credit Support Document), including a
liability to remit to the U.S. Treasury Department the required amount of withholding and to
pay interest and penalties to the U.S. Treasury Department for amounts not withheld.
	 
	 	 	Accordingly, if any such breach or failure by the defaulting payee results in any such tax
liability, then (i) any amount so withheld and remitted to the U.S. Treasury Department
shall discharge the payor’s obligation under this Agreement (or under any Credit Support
Document) to pay to the defaulting payee the portion of any payment so withheld and remitted
(with the payor having no obligation to “gross up” any of its payments for such withheld
amounts), and (ii) if any tax liability resulting from the defaulting payee’s breach or
failure is assessed directly against the payor in respect of any amounts not withheld, the
defaulting payee shall indemnify the payor on demand for the amount of such tax liability
(including interest and penalties). However, any such breach or failure by the defaulting
payee shall not be an “Event of Default” or a “Potential Event of Default” under this
Agreement unless the defaulting payee fails to so indemnify the payor.

Part 3. Documents

2

 

Delivery of Documents.

(i) When it delivers this Agreement, Party B shall also deliver its Closing Documents to
Party A in form and substance reasonably satisfactory to Party A. For each Transaction,
Party B shall deliver, promptly upon request, a duly executed incumbency certificate for the
person(s) executing the Confirmation for that Transaction on behalf of Party B.

(ii) For Party B, “Closing Documents” means an opinion of counsel covering Party B’s Basic
Representations under Section 3(a) as they relate to this Agreement, or in lieu thereof, (A)
a copy of Party B’s organizational documents, including its operating agreement and any
articles or certificate of registration or incorporation, and any amendments thereto, (B) a
certified copy of the resolutions of Party B duly adopted by or on behalf of the members of
Party B (and separate resolutions of the board of directors of each of Party B’s members
that is a corporate entity) authorizing the execution, delivery and performance by Party B
of this Agreement and authorizing Party B to enter into Transactions hereunder, and (C) a
duly executed incumbency certificate of Party B certifying the name, true signature and
authority of each person authorized to execute this Agreement and enter into Transactions
for Party B, together with, if this Agreement or any Transaction for Party B is being
executed through any of Party B’s members or its manager that is a corporate entity, an
incumbency certificate of each such member or manager certifying the name, true signature
and authority of each such person.

Part 4. Miscellaneous

	(a)	 	Addresses for Notices. For purposes of Section 10(a) of this Agreement, all notices to a
party shall, with respect to any particular Transaction, be sent to its address, telex number
or facsimile number specified in the relevant Confirmation (or as specified below if not
specified in the relevant Confirmation), provided that any notice under Section 5 or 6 of this
Agreement, and any notice under this Agreement not related to a particular Transaction, shall
be sent to a party at its address specified below.
	 
	 	 	To Party A:
	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION

301 South College Street, DC-8

Charlotte, NC 28202-0600
	 
	 	 	Attention: Derivatives Documentation Group
	 
	 	 	Fax: (704) 383-0575

Phone: (704) 383-8778
	 
	 	 	To Party B:
	 
	 	 	NNN WESTERN PLACE, LLC et al

                                                            

                                                            

                                                            
	 
	 	 	Attention:                                         
	 
	 	 	Fax:                                         

Phone:                                         

	(b)	 	“Calculation Agent” means Party A.
	 
	(c)	 	“Credit Support Document” means, with respect to Party B, each document (whether now existing
or hereafter executed) which by its terms secures, guarantees or otherwise supports Party B’s
obligations under this Agreement from time to time, whether or not this Agreement, any
Transaction, or any type of Transaction entered into hereunder is specifically referenced or
described in any such document.

     “Credit Support Default” is amended by adding at the end of Section 5(a)(iii)(1):

3

 

“, any default, event of default or other similar condition or event (however described)
exists under any Credit Support Document, any action is taken to realize upon any collateral
provided to secure such party’s obligations hereunder or under any Transaction, or the other
party fails at any time to have a valid and perfected first priority security interest in
any such collateral;”

	(d)	 	“Credit Support Provider” means, with respect to Party B, each party to a Credit Support
Document that provides or is obligated to provide security, a guaranty or other credit support
for Party B’s obligations under this Agreement.

	(e)	 	Governing Law. To the extent not otherwise preempted by U.S. Federal law, this Agreement
will be governed by and construed in accordance with the law of the State of New York (without
giving effect to any provision of New York law that would cause another jurisdiction’s laws to
be applied).

	(f)	 	Waiver of Jury Trial. To the extent permitted by applicable law, each party irrevocably
waives any and all right to trial by jury in any legal proceeding in connection with this
Agreement, any Credit Support Document to which it is a party, or any Transaction.

	(g)	 	Netting of Payments. Section 2(c)(ii) will apply in respect of all Transactions from the
date of this Agreement, provided that Section 2(c)(ii) will not apply with respect to any
Transactions or group of Transactions for which the parties mutually agree shall be netted
operationally.
	 
	(h)	 	“Affiliate” has its meaning as defined in Section 12.

Part 5. Other Provisions

	(a)	 	2006 ISDA Definitions. This Agreement and each Transaction are subject to the 2006 ISDA
Definitions published by the International Swaps and Derivatives Association, Inc. (the “2006
ISDA Definitions”) and will be governed by the provisions of the 2006 ISDA Definitions. The
provisions of the 2006 ISDA Definitions are incorporated by reference in, and shall form part
of, this Agreement and each Confirmation. Any reference to a “Swap Transaction” in the 2006
ISDA Definitions is deemed to be a reference to a “Transaction” for purposes of this Agreement
or any Confirmation, and any reference to a “Transaction” in this Agreement or any
Confirmation is deemed to be a reference to a “Swap Transaction” for purposes of the 2006 ISDA
Definitions. The provisions of this Agreement (exclusive of the 2006 ISDA Definitions) shall
prevail in the event of any conflict between such provisions and the 2006 ISDA Definitions.

	(b)	 	Scope of Agreement. Any Specified Transaction now existing or hereafter entered into between
the parties (whether or not evidenced by a Confirmation) shall constitute a “Transaction”
under this Agreement and shall be subject to, governed by, and construed in accordance with
the terms of this Agreement, unless the confirming document(s) for that Specified Transaction
provide(s) otherwise. For any such Specified Transaction not evidenced by a Confirmation,
Section 2(a)(i) of this Agreement is amended to read as follows: “(i) Each party will make
each payment or delivery to be made by it under each Transaction, as specified in each
Confirmation (or otherwise in accordance with the terms of that Transaction if not evidenced
by a Confirmation), subject to the other provisions of this Agreement.” In the event the
parties enter into any such Specified Transaction that is a foreign exchange transaction or
provides for one or more payments or deliveries to be made in a currency other than U.S.
Dollars, (i) this Agreement shall be deemed to incorporate by reference the multicurrency
provisions of the 1992 ISDA Master Agreement (Multicurrency-Cross Border) form, including
Section 8 thereof, and shall be read and construed in accordance with such provisions, mutatis
mutandis, with such modifications deemed made to Sections 6(e) and 12 hereof to incorporate
the Termination Currency Equivalent provisions of Sections 6(e) and 14 of such form and with
U.S. Dollars being deemed the Termination Currency for such purpose, and (ii) this Agreement
and any such Specified Transaction shall be deemed to incorporate by reference the 1998 FX and
Currency Option Definitions published by ISDA, EMTA Inc. and The Foreign Exchange Committee,
except as otherwise specifically provided herein or in the relevant Confirmation.

	(c)	 	Additional Representations. In addition to the representations under Section 3, the
following representations will apply:

(i) Relationship Between Parties. Each party will be deemed to represent to the other party
on the date on which it enters into a Relevant Agreement that:

4

 

	 	(1)	 	Non-Reliance. It is acting for its own account, and it has made its own
independent decisions to enter into the Relevant Agreement and as to whether the
Relevant Agreement is appropriate or proper for it based solely upon its own judgment
and upon advice from such advisers as it has deemed necessary. It is not relying on
any communication (written or oral) of the other party or any of its affiliates (or its
respective representatives) as investment advice or as a recommendation to enter into
the Relevant Agreement, it being understood that information and explanations related
to the terms and conditions of any Relevant Agreement will not be considered investment
advice or a recommendation to enter into the Relevant Agreement. No communication
(written or oral) received from the other party or any of its affiliates (or its
respective representatives) will be deemed to be an assurance or guarantee as to the
expected results of the Relevant Agreement.
	 
	 	(2)	 	Assessment and Understanding. It is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and
understands and accepts, the terms, conditions and risks of the Relevant Agreement
based solely upon its own evaluation of the Relevant Agreement (including the present
and future results, consequences, risks, and benefits thereof, whether financial,
accounting, tax, legal, or otherwise) or that of its own advisers. It is also capable
of assuming, and assumes, the risks of the Relevant Agreement. It also understands that
the terms under which any Transaction may be terminated early are set forth in this
Agreement (or in the relevant Confirmation), and any early termination of a Transaction
other than pursuant to such terms is subject to mutual agreement of the parties
confirmed in writing, the terms of which may require one party to pay an early
termination fee to the other party based upon market conditions prevailing at the time
of early termination.
	 
	 	(3)	 	Status of Parties. The other party is not acting as a fiduciary for or an
adviser to it in respect of the Relevant Agreement, and any agency, brokerage, advisory
or fiduciary services that the other party (or any of its affiliates) may otherwise
provide to the party (or to any of its affiliates) excludes the Relevant Agreement.

“Relevant Agreement” means this Agreement, each Transaction, each Confirmation, any Credit
Support Document, or any agreement (including any amendment, modification, transfer or early
termination) between the parties relating to this Agreement or to any Transaction,
Confirmation or Credit Support Document.

(ii) Eligibility. Each party will be deemed to represent to the other party on the date on
which it enters into a Transaction that it is an “eligible contract participant” within the
meaning of the Commodity Exchange Act or otherwise qualifies under the CFTC’s Policy
Statement Concerning Swap Transactions (July 21, 1989) published in the Federal Register at
vol.54, pages 30694-30697.

(iii) ERISA. Each party represents to the other party at all times hereunder that it is not
(i) an employee benefit plan as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), or a plan as defined in Section 4975(e)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”), subject to Title I of ERISA or
Section 4975 of the Code, or a plan as so defined but which is not subject to Title I of
ERISA or Section 4975 of the Code but is subject to another law materially similar to Title
I of ERISA or Section 4975 of the Code (each of which, an “ERISA Plan”), (ii) a person or
entity acting on behalf of an ERISA Plan, or (iii) a person or entity the assets of which
constitute assets of an ERISA Plan.

(iv) Authorized Persons. Party B represents, warrants and agrees that: (i) each Authorized
Person, acting singly, is authorized from time to time on behalf of and in the name of Party
B to negotiate, enter into, amend, transfer and terminate Transactions with Party A on such
terms as such Authorized Person may agree; (ii) Party B will be bound by the terms of each
Transaction, and any amendment, transfer or termination thereof, as and when that Authorized
Person enters into (whether orally by telephone or in writing) any such Transaction for
Party B or any agreement with Party A to amend, transfer or terminate any Transaction; and
(iii) Party A may rely and act upon any instruction, order, agreement or document purporting
to be from an Authorized Person and relating to any proposed or existing Transaction,
whether the instruction, order, agreement or document is in writing (signed or unsigned) or
is communicated by telephone, facsimile transmission or other electronic means, and once
Party A has acted or relied upon it, then that instruction, order, agreement or document may
not be rescinded, canceled, terminated, modified or amended without Party A’s prior written
consent.

“Authorized Person” means any person whose signature is set forth below Party B’s name on
the signature pages hereof and each other person who is a director, officer, partner (or
general partner), manager (or general manager), member (or managing member) or any other
person holding any office or position in Party B or in any of its partners

5

 

(or general partners), managers (or general managers) or members (or managing members).

	(d)	 	Set-off. Any amount (“Early Termination Amount”) payable to one party (“Payee”) by the
other party (“Payer”) under Section 6(e), in circumstances where there is a Defaulting Party
or one Affected Party in the case where a Termination Event under Section 5(b)(ii) has
occurred, will, at the option of the party (“X”) other than the Defaulting Party or the
Affected Party (and without prior notice to the Defaulting Party or the Affected Party), be
reduced by means of set off against any amount(s) (“Other Agreement Amount”) payable (whether
at such time or in the future or upon the occurrence of a contingency) by the Payee to the
Payer or to any Affiliate of the Payer (irrespective of the currency, place of payment or
booking office of the obligation) under any other agreement(s) between the Payee and the Payer
(or between the Payee and any Affiliate of the Payer) or instrument(s) or undertaking(s)
issued or executed by the Payee to, or in the favor of, the Payer or any Affiliate of the
Payer (and the Other Agreement Amount will be discharged promptly and in all respects to the
extent it is so set-off). X will give notice to the other party of any set-off effected under
this paragraph.
	 
	 	 	For this purpose, either the Early Termination Amount or the Other Agreement Amount (or the
relevant portion of such amounts) may be converted by X into the currency in which the other
is denominated at the rate of exchange at which such party would be able, acting in a
reasonable manner and in good faith, to purchase the relevant amount of such currency. The
term “rate of exchange” includes, without limitation, any premiums and costs of exchange
payable in connection with the purchase of or conversion into the relevant currency.
	 
	 	 	Nothing in this paragraph shall be effective to create a charge or other security interest.
This paragraph shall be without prejudice and in addition to any right of set-off,
combination of accounts, lien or other right to which any party is at any time otherwise
entitled (whether by operation of law, contract or otherwise).

	(e)	 	Change of Account. Any account designated by a party pursuant to Section 2(b) shall be in
the same legal and tax jurisdiction as the original account.

	(f)	 	Recording of Conversations. Each party (i) consents to the recording of telephone
conversations between the trading, marketing and other relevant personnel of the parties or
any of their Affiliates in connection with this Agreement or any Transaction or potential
Transaction, (ii) agrees to obtain any necessary consent of, and give any necessary notice of
such recording to, its relevant personnel and those of its Affiliates and (iii) agrees, to the
extent permitted by applicable law, that such recordings may be submitted in evidence in any
Proceedings.

	(g)	 	Confirmation Procedures. Upon receipt thereof, Party B shall examine the terms of each
Confirmation sent by Party A, and unless Party B objects to the terms within three New York
business days after receipt of that Confirmation, those terms shall be deemed accepted and
correct absent manifest error, in which case that Confirmation will be sufficient to form a
binding supplement to this Agreement notwithstanding Section 8(e)(ii) of this Agreement.

(h) Covenants of Financial Agreements.

(i) Party B shall provide Party A at all times hereunder with the same covenant protection
as Party B provides Party A (or any of its Affiliates) under Financial Agreements.
Therefore, in addition to the Cross Default provisions of this Agreement, and
notwithstanding the satisfaction of any obligation or promise to pay money to Party A (or
any of its Affiliates) under any Financial Agreement, or the termination or cancellation of
any Financial Agreement, Party B hereby agrees to perform, comply with and observe for the
benefit of Party A hereunder all affirmative and negative covenants contained in each
Financial Agreement applicable to Party B (excluding any obligation or promise to pay money
under any Financial Agreement) at any time Party B has any obligation (whether absolute or
contingent) under this Agreement.

(ii) For purposes hereof: (A) the affirmative and negative covenants of each Financial
Agreement applicable to Party B (together with related definitions and ancillary provisions,
but in any event excluding any obligation or promise to pay money under any Financial
Agreement) are incorporated (and upon execution of any future Financial Agreement, shall
automatically be incorporated) by reference herein (mutatis mutandis); (B) if other lenders
or creditors are parties to any Financial Agreement, then references therein to the lenders
or creditors shall be deemed references to Party A; and (C) for any such covenant applying
only when any loan, other extension of credit,

6

 

obligation or commitment under the Financial Agreement is outstanding, that covenant shall
be deemed to apply hereunder at any time Party B has any obligation (whether absolute or
contingent) under this Agreement.

(iii) Notwithstanding the foregoing, if the incorporation of any provision by reference from
any Financial Agreement would result in the violation by Party B of the terms of that
Financial Agreement, or be in violation of any law, rule or regulation (as interpreted by
any court of competent jurisdiction), then this Agreement shall not incorporate that
provision.

“Financial Agreement” means each existing or future agreement or instrument relating to any
loan or extension of credit from Party A (or any of its Affiliates) to Party B (whether or
not anyone else is a party thereto), as the same exists when executed and without regard to
(i) any termination or cancellation thereof or Party A (or any of its Affiliates) ceasing to
be a party thereto (whether as a result of repayment thereof or otherwise), or (ii) unless
consented to in writing by Party A (or any of its Affiliates), any amendment, modification,
addition, waiver or consent thereto or thereof.

	(i)	 	Transfer. Notwithstanding anything contained in Section 7 of this Agreement, if the rights
of Party A (or any of its Affiliates) in any loan or extension of credit under any Financial
Agreement are sold, assigned or otherwise transferred to any purchaser, assignee or transferee
to which Party A (or its relevant Affiliate) may lawfully make such sale, assignment or
transfer, then Party A may transfer without recourse its rights and obligations in or under
this Agreement (and any Credit Support Document) to any such purchaser, assignee or
transferee, provided that Party B is provided with written notice of such transfer and a
written acknowledgement of the purchaser, assignee or transferee stating that it has acquired
such rights and obligations of Party A and is bound by the terms of this Agreement (and any
Credit Support Document) as Party A’s successor hereunder (and thereunder).

	(j)	 	Independent Obligations. (i) Although Party B may be entering into one or more Transactions
under this Agreement to hedge against the interest expense of, or other risk associated with,
an existing or future loan or other financing, this Agreement and each Transaction shall be an
independent obligation of Party B separate and apart from any such loan or other financing,
and therefore: (A) each party’s obligations under this Agreement or any Transaction shall not
be contingent on whether any loan or other financing closes, is outstanding or is repaid, in
whole or in part, at any time; (B) subject to paragraph (ii) below, any repayment,
acceleration, satisfaction, discharge or release of, and any amendment, modification or waiver
with respect to, any loan or other financing, whether in whole or in part, at any time, shall
not in any way affect this Agreement, any Transaction or either party’s obligations under this
Agreement or any Transaction; (C) payments that become due under this Agreement or any
Transaction shall be due whether or not (1) the Notional Amount of any Transaction at any time
is different from the principal amount of any loan or other financing, (2) the Termination
Date of any Transaction occurs before or after the maturity date of any loan or other
financing, or (3) any other terms of any loan or other financing are different from the terms
of this Agreement or any Transaction; (D) nothing in this Agreement or in any Confirmation is
intended to be, nor shall anything herein or therein be construed as, a prepayment penalty,
charge or premium for purposes of any loan or other financing, nor shall any terms of any loan
or other financing be deemed a waiver of or otherwise impair any amount due or that may become
due under this Agreement or under any Transaction; (E) if Party B at any time receives from
Party A (or any of its affiliates) any payoff statement or other written statement regarding
any loan or other financing, nothing in such statement shall be deemed to apply to this
Agreement or any Transaction except as otherwise expressly provided in that statement and then
only to the extent so provided; (F) the terms under which any Transaction may be terminated
early are set forth in this Agreement (including any Confirmation of such Transaction), and
any early termination of a Transaction other than pursuant to the provisions of this Agreement
(including any such Confirmation) is subject to mutual agreement of the parties confirmed in
writing, the terms of which may require one party to pay an early termination fee to the other
party based upon market conditions prevailing at the time of early termination; and (G) if at
any time any existing or future collateral or other credit support secures or otherwise
supports both this Agreement (or any Transaction hereunder) and any loan or other financing
(whether this Agreement or any Transaction hereunder is specifically identified in the
collateral or credit support documents, or instead is referred to therein generically), then
Party A (or its agent) shall be entitled to continue to hold such collateral or other credit
support, and such collateral or other credit support shall continue to secure or otherwise
support Party B’s obligations under this Agreement (or any Transaction hereunder), until such
time as all such obligations of Party B are completely satisfied notwithstanding any
repayment, acceleration, satisfaction, discharge or release of any such loan or other
financing.

(ii) Nothing in paragraph (i) above shall be construed as impairing or limiting: any set-off
rights; any cross default, credit support default or other provisions contained in this
Agreement or any Confirmation to the extent such provisions refer to any repayment or
acceleration of any loan or other financing; any rights or obligations under any

7

 

Credit Support Documents; or any obligations of Party B under any covenant incorporated in
this Schedule by reference from any loan or other financing (provided that any amendment,
modification or waiver executed and delivered by Party A in writing with respect to any such
covenant shall be deemed to apply hereunder to that covenant as so incorporated unless
otherwise expressly provided in such writing).

	(k)	 	Joint Party. If more than one entity or natural person is executing this Agreement as Party
B, then (i) the obligations of Party B under this Agreement and under each Transaction shall
be the joint and several obligations of each such entity or natural person, (ii) any Event of
Default or Potential Event of Default occurring with respect to any such entity or natural
person shall be an Event of Default or Potential Event of Default, respectively, with respect
to Party B, (iii) the death, release or discharge, in whole or in part, of any such entity or
natural person, or the occurrence of any bankruptcy, liquidation, dissolution or any other
event described in Section 5(a)(vii) with respect to any such entity or natural person, shall
not discharge or affect the liabilities of any other such entity or natural person; (iv)
unless the context otherwise requires, each reference in this Agreement or in any Confirmation
to “party” shall, as applied to Party B, be construed as a joint and several reference to each
such entity or natural person; and (v) any person or entity receiving notices given to Party B
at the address shown above shall be deemed to receive such notices on behalf of each such
entity or person.

IN WITNESS WHEREOF, the parties have executed this Schedule by their duly authorized signatories as
of the date hereof.

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ John Miechkowski
 	 
	 	 	Name:  	John Miechkowski 	 
	 	 	Title:  	Director 	 
	 
	 	NNN WESTERN PLACE, LLC, a Delaware limited

liability company

 	 
	 	By:  	NNN Western Place Manager, LLC, a

Delaware limited liability company, its

Manager
 	 
	 
	 	 	 
	 	By:  	            Grubb & Ellis Realty Investors, LLC, a

Virginia limited liability company, its Manager
 	 
	 
	 	 	 
	 	By:  	                   /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Office 	 
	 
	 	NNN WESTERN PLACE 1, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 2, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 

8

 

	 	 	 	 	 
	 	NNN WESTERN PLACE 3, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 4, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 5, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 6, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 7, LLC, a Delaware limited

liability company

 	 
	 	By:  	Grubb & Ellis Realty Investors, LLC, a Virginia

limited liability company, its Vice President
 	 
	 
	 	 	 
	 	By:  	            /s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 

9

 

	 	 	 	 	 
	 	GREIT — WESTERN PLACE, LP, a Texas limited

partnership

 	 
	 	By:  	GREIT — Western Place GP, LLC, a Delaware

limited liability company, its General Partner
 	 
	 
	 	 	 
	 	By:  	         G REIT Liquidating Trust dated

January 22, 2008, a Maryland Trust,

its Sole Member and Manager
 	 
	 
	 	 	 
	 	By:  	                        Gary H. Hunt, W. Brand Inlow,

Edward A. Johnson, D. Fleet

Wallace, and Gary T. Wescombe, as

Trustees of the G REIT Liquidating

Trust dated January 22, 2008
 	 
	 
	 	 	 
	 	By:  	                          /s/ Courtney A. Brower
 	 
	 	 	Name:  	Courtney A. Brower 	 
	 	 	Title:  	Authorized Representative 	 
	 

10

 

NOVATION CONFIRMATION

	 	 	 
	Date:

	 	February 29, 2008

	 
	 	 
	To:

	 	NNN WESTERN PLACE, LLC, NNN WESTERN PLACE 1, LLC, NNN
WESTERN PLACE 2, LLC, NNN WESTERN PLACE 3, LLC, NNN WESTERN
PLACE 4, LLC, NNN WESTERN PLACE 5, LLC, NNN WESTERN PLACE
6, LLC, NNN WESTERN PLACE 7, LLC, and GREIT-WESTERN PLACE,
LP (jointly and severally “Counterparty”)

	Email:

	 	cosbrink@1031nnn.com

	Attention:

	 	Charles J. Osbrink

	 
	 	 
	To:

	 	Triple Net Properties, LLC

	Fax:

	 	cosbrink@1031nnn.com

	Attention:

	 	Charles J. Osbrink

	 
	 	 
	From:

	 	Wachovia Bank, N.A. (“Wachovia”)

	Ref. No:

	 	2382045

Dear Charles J. Osbrink:

     The purpose of this letter is to confirm a Novation Transaction between the parties on the terms and conditions set forth
below effective from the Novation Date. This Novation Confirmation constitutes a Confirmation as referred to in the New
Agreement specified below.

     1. The definitions and provisions contained in the 2004 ISDA Novation Definitions (the “Definitions”) and the terms and
provisions of the 2006 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc. and
amended from time to time, are incorporated in this Novation Confirmation. In the event of any inconsistency between (i)
the Definitions, (ii) the 2006 ISDA Definitions and/or (iii) the Novation Agreement and this Novation Confirmation, this
Novation Confirmation will govern.

     2. The terms of the Novation Transaction to which this Novation Confirmation relates, are as follows:

	 	 	 
	Novation Date:

	 	February 26, 2008
	Novated Amount:

	 	USD 24,250,000.00
	Transferor:

	 	Triple Net Properties, LLC
	Transferee:

	 	NNN WESTERN PLACE, LLC,
NNN WESTERN PLACE 1, LLC,
NNN WESTERN PLACE 2, LLC,
NNN WESTERN PLACE 3, LLC,
NNN WESTERN PLACE 4, LLC,
NNN WESTERN PLACE 5, LLC,
NNN WESTERN PLACE 6, LLC,
NNN WESTERN PLACE 7, LLC,
and GREIT-WESTERN PLACE,
LP (jointly and severally)
	Remaining Party:

	 	Wachovia Bank, N.A.
	New Agreement (between Transferee
and Remaining Party):

	 	ISDA Master Agreement
dated as of January 08,
2008 subject to the laws
of the State of New York

11

 

     3. The terms of each Old Transaction to which this Novation Confirmation relates, for identification purposes are as follows.

	 	 	 
	Trade Date of Old Transaction:

	 	January 08, 2008

	Effective Date of Old Transaction:

	 	February 08, 2008

	Termination Date of Old Transaction:

	 	February 08, 2009

	Wachovia Reference Number of Old Transaction:

	 	2350629

     4. The terms of each New Transaction to which this Novation Confirmation relates shall be as specified in the New Confirmation attached hereto as Exhibit A. Remaining
Party and Transferee hereby acknowledge that the terms of the New Transaction reflect an amendment agreed between them to the terms of the Old Transaction as novated
hereunder.

	 	 	 
	Full First Calculation Period:

	 	Applicable, commencing on February 26, 2008

	 	 	 
	5. Other Provisions: 	 	None
	 	 	 
	6. Miscellaneous Provisions: 	 	None
	 	 	 
	7. Notice Details:	 	 As specified in the New Confirmation
attached hereto as Exhibit A.

     8. The parties confirm their acceptance to be bound by this Novation Confirmation as of the Novation Date by executing a copy of this Novation Confirmation and returning
it to us. The Transferor, by its execution of a copy of this Novation Confirmation, agrees to the terms of the Novation Confirmation as it relates to each Old Transaction.
The Transferee, by its execution of a copy of this Novation Confirmation, agrees to the terms of the Novation Confirmation as it relates to each New Transaction.

	 	 	 	 	 	 	 
	Wachovia Bank, N.A.

	 	NNN WESTERN PLACE, LLC, a Delaware limited
 liability company
	 
	By:	 	/s/ Tracey Bissell
	 

	 	Name:

Title:
	 	Tracey Bissell

Vice President
	 	By:  NNN Western Place Manager, LLC, a

        Delaware limited liability company, its

        Manager

	 	 	 	 	 
	 	By:  Grubb & Ellis Realty Investors, LLC, a

        Virginia limited liability company, its Manager

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Office 	 
	 
	 	NNN WESTERN PLACE 1, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 

12

 

	 	 	 	 	 
	 	NNN WESTERN PLACE 2, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 3, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 4, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 5, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	NNN WESTERN PLACE 6, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 

13

 

	 	 	 	 	 
	 	NNN WESTERN PLACE 7, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

 	 
	 	By:  	/s/ Jeffrey T. Hanson
 	 
	 	 	Name:  	Jeffrey T. Hanson 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	GREIT — WESTERN PLACE, LP, a Texas limited

partnership

By:  GREIT — Western Place GP, LLC,

        a Delaware limited liability company,

        its General Partner

By:  G REIT Liquidating Trust dated

        January 22, 2008, a Maryland Trust,

        its Sole Member and Manager

By:  Gary H. Hunt, W. Brand Inlow,

        Edward A. Johnson, D. Fleet

        Wallace, and Gary T. Wescombe, as Trustees of the G         REIT Liquidating Trust dated January 22, 2008

 	 
	 	By:  	/s/ Courtney A. Brower
 	 
	 	 	Name:  	Courtney A. Brower 	 
	 	 	Title:  	Authorized Representative 	 

Ref. No. 2382045

	 	 	 	 	 
	Triple Net Properties, LLC

 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 

EXHIBIT A

1. The terms of the particular Transaction to which the Confirmation relates are as follows:

	 	 	 
	Transaction Type:

	 	Interest Rate Swap

	Currency for Payments:

	 	U.S. Dollars

	Notional Amount:

	 	USD 24,250,000.00

	Term:
	 	 
	Trade Date:

	 	February 26, 2008

	Effective Date:

	 	February 26, 2008

	Termination Date:

	 	February 28, 2009 , subject to adjustment in accordance with the Modified Following Business Day Convention.

	Fixed Amounts:
	 	 

14

 

	 	 	 
	Fixed Rate Payer:

	 	Counterparty

	Payment Dates:

	 	Monthly on the 1st of each month commencing April 01, 2008, through and including the Termination Date

	Business Day Convention:

	 	Modified Following

	Business Day:

	 	New York

	Fixed Rate:

	 	4.56%		
	Fixed Rate Day Count Fraction:

	 	Actual/360

	Floating Amounts:
	 	 
	Floating Rate Payer:

	 	Wachovia

	Payment Dates:

	 	Monthly on the 1st of each month commencing April 01, 2008, through and including the Termination Date

	Business Day Convention:

	 	Modified Following

	Business Day:

	 	New York

	Floating Rate for initial Calculation Period:

	 	3.12%
	Floating Rate Option:

	 	USD-LIBOR-BBA

	Designated Maturity:

	 	1 Month

	Spread:

	 	None

	Floating Rate Day Count Fraction:

	 	Actual/360

	Floating Rate determined:

	 	Two London Banking Days prior to each Reset Date.

	Reset Dates:

	 	The first day of each Calculation Period.

	Compounding:

	 	Inapplicable

	Rounding convention:

	 	5 decimal places per the ISDA Definitions.

2. The additional provisions of this Confirmation are as follows:

	 	 	 
	Calculation Agent:
	 	Wachovia
	Payment Instructions:
	 	Wachovia Bank, N.A.
	 
	 	CIB Group, ABA 053000219
	 
	 	Ref: Derivative Desk (Trade No: 2382045)
	 
	 	Account #: 04659360006116
	Wachovia Contacts:
	 	Settlement and/or Rate Resets:
	 
	 	1-800-249-3865
	 
	 	1-704-383-8429
	 
	 	 
	 
	 	Documentation:
	 
	 	Tel:  (704) 715-7051
	 
	 	Fax:  (704) 383-9139
	 
	 	 
	 
	 	Collateral:
	 
	 	Tel:  (704) 383-9529
	 
	 	Please quote transaction reference number.
	Payments to Counterparty:
	 	Per your standing payment instructions or debit authorization if 
provided to
Wachovia, as relevant. If not provided, please contact 
us in order for payment to be made.
	 
	 
	 
	 
	 
	 
	 
	 	Phone: 1-800-249-3865 Fax: 1-704-383-8429

15

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