Document:

Exhibit 10.7

Exhibit 10.7

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (this “Agreement”) is made and entered into as of January 6, 2009, by
and between Cole REIT III Operating Partnership, LP, a Delaware limited partnership
(“Grantor”), whose address is 2555 East Camelback Road, Suite 400, Phoenix, Arizona 85016,
and Series B, LLC, an Arizona limited liability company (“Lender”), whose address is 2555
East Camelback Road, Suite 400, Phoenix, Arizona 85016.

1. SECURITY INTEREST

Grantor, as collateral security for the payment and performance of the Secured Obligations (as
defined below), hereby grants to Lender a security interest (the “Security Interest”) in
all of Grantor’s right, title and interest in the limited liability company membership interests of
Cole CV Fredericksburg VA, LLC, a Delaware limited liability company (the “Cole SPE”),
whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever
located, together with all of the following, whether now owned or hereafter acquired, whether now
existing or hereafter arising, and wherever located: (a) all of Grantor’s membership interests, or
any other interest, in the Cole SPE; (b) all rights, benefits and privileges held by Grantor under
the Amended and Restated Limited Liability Company Agreement of Cole CV Fredericksburg VA, LLC
dated as of January 6, 2009, as it may be amended, modified or restated from time to time,
including all voting rights and rights to receive dividends, distributions and other payments from
the Cole SPE; (c) all proceeds of the above-described property; and (d) all books and records
pertaining to the above-described property, including any computer readable memory and computer
hardware or software necessary to process such memory (collectively, the “Collateral”).

2. SECURED OBLIGATIONS

The Collateral shall secure, in such order of priority as Lender may elect, the following
(collectively, the “Secured Obligations”):

(a) payment and performance of all obligations of Grantor under the terms of the Promissory
Note of even date herewith (the “Note”), in the maximum principal amount of $5,504,000, executed by
the Grantor in favor of Lender, together with all extensions, modifications, substitutions or
renewals thereof, or other advances made thereunder;

(b) payment and performance of every obligation, covenant and agreement of Grantor contained
in this Agreement, together with all extensions, modifications, substitutions or renewals hereof;
and

(c) payment and performance of every obligation, covenant and agreement of Grantor and Cole
SPE contained in each of the Loan Documents (as defined in the Note), together with all extensions,
modifications, substitutions or renewals thereof.

 

 

 

3. REPRESENTATIONS AND WARRANTIES OF GRANTOR

Grantor hereby represents and warrants to Lender that:

3.1 Other Agreements. The execution, delivery and performance by Grantor of this
Agreement and all other documents and instruments relating to the Secured Obligations will not
result in any breach of the terms and conditions or constitute a default under any agreement or
instrument under which Grantor is a party or is obligated.

3.2 Priority. The Security Interest in the Collateral granted to Lender constitutes,
and hereafter will constitute, a security interest of first priority.

3.3 Title. Grantor is the owner of, and has good title to, the Collateral free of all
security interests or other encumbrances, and no financing statement covering the Collateral is
filed or recorded in any public office.

3.4 Authority. Grantor has the full power, authority and legal right to grant to
Lender the Security Interest, and no further consent, authorization, approval or other action is
required for the grant of the Security Interest or for Lender’s exercise of its rights and remedies
under this Agreement, except as may be required in connection with the sale of the Collateral by
Lender by the laws affecting the offering and sale of securities.

3.5 State of Organization; Name. Grantor is organized under the laws of the State of
Delaware and the exact legal name of Grantor is “Cole REIT III Operating Partnership, LP”.

4. COVENANTS OF GRANTOR

4.1 Transfers. Grantor shall not sell, transfer, assign or otherwise dispose of any
Collateral or any interest therein (except as permitted herein) without obtaining the prior written
consent of Lender and shall keep the Collateral free of all security interests or other
encumbrances.

4.2 Payments of Charges. Grantor shall pay when due all taxes, assessments and other
charges which may be levied or assessed against the Collateral.

4.3 Notice to Lender. Grantor shall give Lender 45 days’ prior written notice of any
change of the names under which it does business or the state of its organization.

4.4 Defense of Collateral. Grantor, at its cost and expense, shall protect and defend
this Agreement, all of the rights of Lender hereunder, and the Collateral against all claims and
demands of other parties, including defenses, setoffs, claims and counterclaims asserted by any
Obligor against Grantor and/or Lender. Grantor shall pay all claims and charges that in the
reasonable opinion of Lender might prejudice, imperil or otherwise affect the Collateral or
the Security Interest.

 

2

 

4.5 Perfection of Security Interest. The Security Interest, at all times, shall be
perfected and shall be prior to any other interests in the Collateral. Grantor shall act and
perform as necessary and shall execute and file all security agreements, financing statements,
continuation statements, control agreements, and other documents requested by Lender to establish,
maintain and continue the perfected Security Interest. Grantor further authorizes Lender to file
an initial financing statement, including all necessary amendments, without any signature of
Grantor, to perfect the Security Interest in the Collateral. Grantor, on written demand, shall
promptly pay all costs and expenses of filing and recording, including the costs of any searches,
deemed necessary by Lender from time to time to establish and determine the validity and the
continuing priority of the Security Interest.

4.6 Payment of Charges. If Grantor fails to pay any taxes, assessments, expenses or
charges, or fails to keep all of the Collateral free from other security interests, encumbrances or
to perform otherwise as required herein, Lender may advance the monies necessary to pay the same or
to so perform.

5. EVENTS OF DEFAULT; REMEDIES

5.1 Events of Default. The occurrence of any of the following events or conditions
shall constitute an “Event of Default”:

(i) Any failure to pay any principal or interest or any other part of the Secured Obligations
when the same shall become due and payable.

(ii) The Failure of Grantor to comply with any term or provision of this Agreement.

(iii) The occurrence of an “Event of Default” under and as defined in the Note or any of the
other Loan Documents.

5.2 Remedies. Upon the occurrence of any Event of Default, and at any time while such
Event of Default is continuing, Lender shall have the following rights and remedies and may do one
or more of the following:

(i) Declare all or any part of the Secured Obligations to be immediately due and payable, and
the same, with all costs and charges, shall be collectible thereupon by action at law.

(ii) Without further notice or demand and without legal process, take possession of the
Collateral wherever found and, for this purpose, enter upon any property occupied by or in the
control of Grantor. Grantor, upon demand by Lender, shall assemble the Collateral and deliver it
to Lender or to a place designated by Lender that is reasonably convenient to both parties.

(iii) Pursue any legal or equitable remedy available to collect the Secured Obligations, to
enforce its title in and right to possession of the Collateral and to enforce any and all other
rights or remedies available to it.

 

3

 

(iv) Upon obtaining possession of the Collateral or any part thereof, after written notice to
Grantor as provided in Section 5.4 hereof, sell such Collateral at public or private sale
either with or without having such Collateral at the place of sale. The proceeds of such sale,
after deducting therefrom all reasonable expenses of Lender in taking, storing, repairing and
selling the Collateral (including attorneys’ fees) shall be applied to the payment of the Secured
Obligations, and any surplus thereafter remaining shall be paid to Grantor or any other person that
may be legally entitled thereto. In the event of a deficiency between such net proceeds from the
sale of the Collateral and the total amount of the Secured Obligations, Grantor, upon demand, shall
promptly pay the amount of such deficiency to Lender.

5.3 Purchase of Collateral. Lender, so far as may be lawful, may purchase all or any
part of the Collateral offered at any public or private sale made in the enforcement of Lender’s
rights and remedies hereunder.

5.4 Notice. Any demand or notice of sale, disposition or other intended action
hereunder or in connection herewith, whether required by the Uniform Commercial Code or otherwise,
shall be deemed to be commercially reasonable and effective if such demand or notice is given to
Grantor at least ten days prior to such sale, disposition or other intended action, in the manner
provided herein for the giving of notices.

5.5 Costs and Expenses. Grantor shall pay all reasonable costs and expenses of
Lender, including costs of uniform commercial code searches, court costs and reasonable attorneys’
fees, incurred by Lender in enforcing payment and performance of the Secured Obligations or in
exercising the rights and remedies of Lender hereunder. All such reasonable costs and expenses
shall be secured by this Agreement and by other lien and security documents securing the Secured
Obligations. In the event of any court proceedings, court costs and attorneys’ fees shall be set
by the court and not by jury and shall be included in any judgment obtained by Lender.

5.6 Additional Remedies. In addition to any remedies provided herein for an Event of
Default, Lender shall have all the rights and remedies afforded a secured party under the Uniform
Commercial Code and all other legal and equitable remedies allowed under applicable law. No
failure on the part of Lender to exercise any of its rights hereunder arising upon any Event of
Default shall be construed to prejudice its rights upon the occurrence of any other or subsequent
Event of Default. No delay on the part of Lender in exercising any such rights shall be construed
to preclude it from the exercise thereof at any time while that Event of Default is continuing.
Lender may enforce any one or more rights or remedies hereunder successively or concurrently. By
accepting payment or performance of any of the Secured Obligations after its due date, Lender shall
not thereby waive the agreement contained herein that time is of the essence, nor shall Lender
waive either its right to require prompt payment or performance when due of the remainder of the
Secured Obligations or its right to consider the failure to so pay or perform an Event of Default.

 

4

 

6. MISCELLANEOUS PROVISIONS

6.1 Power of Attorney. Grantor hereby appoints Lender as its true and lawful
attorney-in-fact, with full power of substitution to do the following: (i) to demand, collect,
receive, receipt for, sue and recover all sums of money or other property which may now or
hereafter become due, owing or payable from the Collateral; (ii) to execute, sign and endorse any
and all claims, instruments, receipts, checks, drafts or warrants issued in payment for the
Collateral; (ii) to settle or compromise any and all claims arising under the Collateral, and, in
the place and stead of Grantor to execute and deliver its release and settlement for the claim;
(iv) to file any claim or claims or to take any action or institute or take part in any
proceedings, either in its own name or in the name of Grantor, or otherwise, which in the
reasonable discretion of Lender may seem to be necessary or advisable; and (v) to execute any
documents necessary to perfect or continue the Security Interest; provided, however, that the
powers specified in clauses (i) through (iv) may not be exercised by Lender except during the
continuance of an Event of Default. This power is a power coupled with an interest and is given as
security for the Secured Obligations, and the authority hereby conferred is and shall be
irrevocable and shall remain in full force and effect until renounced by Lender.

6.2 Actions by Lender. Without notice or demand, without affecting the obligations of
Grantor hereunder, and without affecting the Security Interest or the priority thereof, Lender,
from time to time, may: (i) extend the time for payment of all or any part of the Secured
Obligations, accept a renewal note therefor, reduce the payments thereon, release any person liable
for all or any part thereof, or otherwise change the terms of all or any part of the Secured
Obligations; (ii) take and hold other security for the payment or performance of the Secured
Obligations and enforce, exchange, substitute, subordinate, waive or release any such security;
(iii) join in any extension or subordination agreement; or (iv) release any part of the Collateral
from the Security Interest.

6.3 Waivers. Grantor waives and agrees not to assert: (i) any right to require
Lender to proceed against any guarantor, to proceed against or exhaust any other security for the
Secured Obligations, to pursue any other remedy available to Lender, or to pursue any remedy in any
particular order or manner; (ii) the benefits of any legal or equitable doctrine or principle of
marshalling; (iii) the benefits of any statute of limitations affecting the enforcement hereof;
(iv) demand, diligence, presentment for payment, protest and demand, and notice of extension,
dishonor, protest, demand and nonpayment, relating to the Secured Obligations; and (v) any benefit
of, and any right to participate in, any other security now or hereafter held by Lender.

6.4 Governing Law. This Agreement shall be construed in accordance with and governed
by the laws of the State of Arizona, without regard to the choice of law rules of the State of
Arizona.

6.5 Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but such counterparts shall together constitute but one and the
same agreement.

6.6 Entire Agreement. This Agreement contains the entire agreement and understanding
of the parties with respect to the subject matter hereof, supersedes all other prior
understandings, oral or written, with respect to the subject matter hereof, and are intended by
Lender and Grantor as the final, complete and exclusive statement of the terms agreed to by them.

 

5

 

6.7 Amendments. No amendment, modification, change, waiver, release or discharge
hereof and hereunder shall be effective unless evidenced by an instrument in writing and signed by
the party against whom enforcement is sought.

6.8 Section Headings. The section headings set forth in this Agreement are for
convenience only and shall not have substantive meaning hereunder or be deemed part of this
Agreement.

6.9 Time of Essence. Time is of the essence of this Agreement and each and every
provision hereof.

6.10 Severability. If any provision hereof is invalid or unenforceable, the other
provisions hereof shall remain in full force and effect and shall be liberally construed in favor
of Lender in order to effectuate the other provisions hereof.

6.11 Binding Nature. The provisions of this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their heirs, personal representatives,
successors and assigns. The provisions hereof shall apply to the parties according to the context
thereof and without regard to the number or gender of words or expressions used.

6.12 Construction. This Agreement shall be construed as a whole, in accordance with
its fair meaning, and without regard to or taking into account any presumption or other rule of law
requiring construction against the party preparing this Agreement. As used here, the words
“include(s)” means “include(s), without limitation,” and the word “including” means “including, but
not limited to.”

6.13 Notices. Any notice or other communication with respect to this Agreement shall:
(a) be in writing; (b) be effective on the day of hand-delivery thereof to the party to whom
directed, one day following the day of deposit thereof with delivery charges prepaid, with a
national overnight delivery service, or two days following the day of deposit thereof with postage
prepaid, with the United States Postal Service, by regular first class, certified or registered
mail; (c) if directed to Lender, be addressed to Lender at the office of Lender set forth above, or
to such other address as Lender shall have specified to Grantor by like notice; and (d) if directed
to Grantor, be addressed to Grantor at the address for Grantor set forth above, or to such other
address as Grantor shall have specified by like notice.

[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

6

 

IN WITNESS WHEREOF, this Agreement was executed by Grantor and Lender as of the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	“GRANTOR”
	 
	 	 	 	 	 	 
	 	 	COLE REIT III OPERATING PARTNERSHIP, LP,
a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole Credit Property Trust III, Inc., 
a Maryland
corporation, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ D. Kirk McAllaster, Jr.
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: D. Kirk McAllaster, Jr.
	 

	 	 	 	 	 	Title:   Executive Vice President
	 
	 	 	 	 	 	 
	 	 	“LENDER”
	 
	 	 	 	 	 	 
	 	 	SERIES B, LLC, an Arizona limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John M. Pons	 	 
	 	 	 	 	 
	 	 	 	 	Name: John M. Pons
	 	 	 	 	Title:   Authorized Officer

 

7Exhibit 10.8

Exhibit 10.8

PROMISSORY NOTE

(Demand Note)

			
	 	 	 
	U.S. $5,504,000
	 	January 6, 2009

FOR VALUE RECEIVED, Cole REIT III Operating Partnership, LP, a Delaware limited partnership
(“Borrower”), hereby promises to pay to the order of Series B, LLC, an Arizona limited
liability company (“Lender”), at the office of Lender located at 2555 East Camelback Road,
Suite 400, Phoenix, AZ 85016, the principal amount of $5,504,000, together with interest on the
principal balance outstanding hereunder, from (and including) the date of disbursement until (but
not including) the date of payment, at a per annum rate equal to the Stated Interest Rate specified
below or, to the extent applicable, the Default Interest Rate specified below, in accordance with
the following terms and conditions:

1. Revolving Line of Credit. The principal balance of this Note represents a
revolving line of credit all or any part of which may be advanced to Borrower, repaid by Borrower,
and re-advanced to Borrower from time to time, subject to the other terms hereof and the
conditions, if any, contained in the Loan Documents (as hereinafter defined), and provided that the
principal balance outstanding at any one time shall not exceed the face amount hereof.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS NOTE OR ELSEWHERE, BORROWER ACKNOWLEDGES
AND AGREES THAT THIS NOTE IS A DEMAND NOTE AND THAT LENDER MAY DEMAND UPON 30 DAYS PRIOR WRITTEN
NOTICE THAT THE ENTIRE UNPAID PRINCIPAL BALANCE, ALL ACCRUED AND UNAPID INTEREST, AND ALL OTHER
AMOUNTS PAYABLE HEREUNDER SHALL BE DUE AND PAYABLE IN FULL ON MARCH 31, 2009.

2. Contracted For Rate of Interest The contracted for rate of interest of the
indebtedness evidenced hereby, without limitation, shall consist of the following:

(a) The Stated Interest Rate (as hereinafter defined), as from time to time in effect,
calculated daily on the basis of actual days elapsed over a 360-day year, applied to the principal
balance from time to time outstanding hereunder;

(b) The Default Interest Rate (as hereinafter defined), as from time to time in effect,
calculated daily on the basis of actual days elapsed over a 360-day year, applied to the principal
balance from time to time outstanding hereunder; and

(c) All Additional Sums (as hereinafter defined), if any.

Borrower agrees to pay an effective contracted for rate of interest which is the sum of the Stated
Interest Rate referred to in Subsection 2(a) above, plus any additional rate of interest
resulting from the application of the Default Interest Rate referred to in Subsection 2(b)
above, and the Additional Sums, if any, referred to in Subsection 2(c) above.

 

 

 

3. Stated Interest Rate. Except as provided in Section 4 below, interest shall accrue
on the principal balance outstanding hereunder during each Interest Period (as hereinafter
defined) at the Stated Interest Rate. The Stated Interest Rate shall be a rate per annum
equal to the 3-month LIBOR plus 2.5%. “Interest Period” means each period commencing on the first
day of the calendar month and ending on the first day of the next succeeding calendar month;
provided (i) the first Interest Period shall commence on the date hereof and (ii) any
Interest Period that would otherwise extend past the maturity date of this Note shall end on the
maturity date of this Note. “LIBOR” means, with respect to each Interest Period, the rate for U.S.
dollar deposits with a maturity equal to the number of months specified above, as reported on
Telerate page 3750 as of 11:00 a.m., London time, on the second London business day before such
Interest Period begins, or, in the case of the first Interest Period, the second London business
day before the first day of the calendar month during which such Interest Period begins (or if not
so reported, then as determined by the Lender from another recognized source or interbank
quotation).

4. Default Interest Rate. The Default Interest Rate shall be the Stated Interest Rate
plus 4.0% per annum. The principal balance outstanding hereunder from time to time shall bear
interest at the Default Interest Rate from the date of the occurrence of an Event of Default (as
hereinafter defined) hereunder until the earlier of: (a) the date on which the principal balance
outstanding hereunder, together with all accrued interest and other amounts payable hereunder, are
paid in full; or (b) the date on which such Event of Default is timely cured in a manner
satisfactory to Lender, (i) if Borrower is specifically granted a right to cure such Event of
Default in any of the Loan Documents or (ii) if no such right to cure is specifically granted, then
Lender, in its sole and absolute discretion, permits such Event of Default to be cured.

5. Payment. Accrued interest under this Note shall be due and payable in arrears
on the last day of each Interest Period. Notwithstanding the foregoing sentence, the principal
balance outstanding hereunder, together with all accrued interest and other amounts payable
hereunder shall be due and payable on March 31, 2009 upon 30 days prior written demand by Lender,
otherwise such amounts shall be due and payable no later than January 5, 2010.

6. Application and Place of Payments. Payments received by Lender with respect to the
indebtedness evidenced hereby shall be applied in such order and manner as Lender in its sole and
absolute discretion may elect. Unless otherwise elected by Lender, all such payments shall first
be applied to accrued and unpaid interest at the Stated Interest Rate and, to the extent
applicable, the Default Interest Rate, next to the principal balance then outstanding hereunder,
and the remainder to any Additional Sums or other costs or added charges provided for herein or in
any of the Loan Documents. Payments hereunder shall be made at the address for Lender first set
forth above, or at such other address as Lender may specify to Borrower in writing.

7. Prepayments. Payments of principal hereof may be made at any time, or from time to
time, in whole or in part, without penalty, provided that all previously matured interest and other
charges accrued to the date of prepayment are also paid in full. Notwithstanding any partial
prepayment of principal hereof, there will be no change in the due date or amount of scheduled
payments due hereunder unless Lender, in its sole and absolute discretion, agrees in writing to
such change.

 

2

 

8. Events of Default; Acceleration. The occurrence of any one or more of the
following events shall constitute an “Event of Default” hereunder, and upon such Event of
Default, the entire principal balance outstanding hereunder, together with all accrued
interest and other amounts payable hereunder, at the election of Lender, shall become immediately
due and payable, without any notice to Borrower:

(a) Nonpayment of principal, interest or other amounts when the same shall become due and
payable hereunder, by demand of Lender or otherwise;

(b) The failure of Borrower to comply with any provision of this Note;

(c) The failure of Borrower to comply with any provision of any document, instrument or
agreement executed in connection with the indebtedness evidenced hereby including, without
limitation, the Security Agreement, of even date herewith, executed by Borrower, as grantor, and
Lender, as secured party, wherein Borrower granted a security interest in all of its right, title
and interest in the limited liability company membership interests of Cole CV Fredericksburg VA,
LLC (“Cole SPE”), or any other security document executed in connection with this Note
(collectively, the “Loan Documents”) if such failure is not cured within 30 days after written
notice by Lender to Borrower, as applicable;

(d) The dissolution, winding-up or termination of the existence of Borrower or Cole SPE;

(e) The calling of a meeting of the creditors of Borrower or Cole SPE or the making by
Borrower or Cole SPE of an assignment for the benefit of its creditors; or

(f) The filing by Borrower or Cole SPE of a petition or application for relief under federal
bankruptcy law or any similar state or federal law.

9. Additional Sums. All fees, charges, goods, things in action or any other sums or
things of value, other than the interest resulting from the Stated Interest Rate and the Default
Interest Rate, as applicable, paid or payable by Borrower (collectively, the “Additional Sums”),
whether pursuant to this Note, the Loan Documents or any other document or instrument in any way
pertaining to this lending transaction, or otherwise with respect to this lending transaction,
that, under the laws of the State of Arizona, may be deemed to be interest with respect to this
lending transaction, for the purpose of any laws of the State of Arizona that may limit the maximum
amount of interest to be charged with respect to this lending transaction, shall be payable by
Borrower as, and shall be deemed to be, additional interest, and for such purposes only, the agreed
upon and “contracted for rate of interest” of this lending transaction shall be deemed to be
increased by the rate of interest resulting from the Additional Sums. Borrower understands and
believes that this lending transaction complies with the usury laws of the State of Arizona;
however, if any interest or other charges in connection with this lending transaction are ever
determined to exceed the maximum amount permitted by law, then Borrower agrees that: (a) the amount
of interest or charges payable pursuant to this lending transaction shall be reduced to the maximum
amount permitted by law; and (b) any excess amount previously collected from Borrower in connection
with this lending transaction that exceeded the maximum amount permitted by law, will be credited
against the principal balance then outstanding hereunder. If the outstanding principal balance
hereunder has been paid in full, the excess amount paid will be refunded to Borrower.

 

3

 

10. Waivers. Except as set forth in this Note or the Loan Documents, to the extent
permitted by applicable law, Borrower, and each person who is or may become liable hereunder,
severally waive and agree not to assert: (a) any exemption rights; (b) demand, diligence, grace,
presentment for payment, protest, notice of nonpayment, nonperformance, extension, dishonor,
maturity, protest and default; and (c) recourse to guaranty or suretyship defenses (including,
without limitation, the right to require the Lender to bring an action on this Note). Lender may
extend the time for payment of or renew this Note, release collateral as security for the
indebtedness evidenced hereby or release any party from liability hereunder, and any such
extension, renewal, release or other indulgence shall not alter or diminish the liability of
Borrower or any other person or entity who is or may become liable on this Note except to the
extent expressly set forth in a writing evidencing or constituting such extension, renewal, release
or other indulgence.

11. Costs of Collection. Borrower agrees to pay all reasonable costs of collection,
including, without limitation, attorneys’ fees, whether or not suit is filed, and all costs of suit
and preparation for suit (whether at trial or appellate level), in the event any payment of
principal, interest or other amount is not paid when due. In the event of any court proceeding,
attorneys’ fees shall be set by the court and not by the jury and shall be included in any judgment
obtained by Lender.

12. No Waiver by Lender. No delay or failure of Lender in exercising any right
hereunder shall affect such right, nor shall any single or partial exercise of any right preclude
further exercise thereof.

13. Governing Law. This Note shall be construed in accordance with and governed by
the laws of the State of Arizona, without regard to the choice of law rules of the State of
Arizona.

14. Time of Essence. Time is of the essence of this Note and each and every provision
hereof.

15. Amendments. No amendment, modification, change, waiver, release or discharge
hereof and hereunder shall be effective unless evidenced by an instrument in writing and signed by
the party against whom enforcement is sought.

16. Severability. If any provision hereof is invalid or unenforceable, the other
provisions hereof shall remain in full force and effect and shall be liberally construed in favor
of Lender in order to effectuate the other provisions hereof.

17. Binding Nature. The provisions of this Note shall be binding upon Borrower and
the heirs, personal representatives, successors and assigns of Borrower, and shall inure to the
benefit of Lender and any subsequent holder of all or any portion of this Note, and their
respective successors and assigns. Lender may from time to time transfer all or any part of its
interest in this Note and the Loan Documents, without notice to Borrower.

 

4

 

18. Notice. Any notice or other communication with respect to this Note shall: (a) be
in writing; (b) be effective on the day of hand-delivery thereof to the party to whom directed, one
day following the day of deposit thereof with delivery charges prepaid, with a national overnight
delivery service, or two days following the day of deposit thereof with postage prepaid, with
the United States Postal Service, by regular first class, certified or registered mail; (c) if
directed to Lender, be addressed to Lender at the office of Lender set forth above, or to such
other address as Lender shall have specified to Borrower by like notice; and (d) if directed to
Borrower, be addressed to Borrower at the address for Borrower set forth below Borrower’s name, or
to such other address as Borrower shall have specified by like notice.

19. Section Headings. The section headings set forth in this Note are for convenience
only and shall not have substantive meaning hereunder or be deemed part of this Note.

20. Construction. This Note shall be construed as a whole, in accordance with its
fair meaning, and without regard to or taking into account any presumption or other rule of law
requiring construction against the party preparing this Note.

IN WITNESS WHEREOF, Borrower has executed this Note as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	COLE REIT IIII OPERATING PARTNERSHIP, LP,
a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole Credit Property Trust III, Inc., 

a
Maryland corporation, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ D. Kirk McAllaster, Jr.
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: D. Kirk McAllaster, Jr.
	 

	 	 	 	 	 	Title:   Executive Vice President
	 
	 	 	 	 	 	 
	 	 	Address of Borrower:
	 
	 	 	 	 	 	 
	 	 	2555 E. Camelback Road, Suite 

400 Phoenix, AZ 85016

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]