Document:

exv10w1

Exhibit 10.1

ADVISORY AGREEMENT

     This ADVISORY AGREEMENT
(this “Agreement”) is entered into on this the 28th day of
 September, 2011,
by and between COLE REAL ESTATE INCOME STRATEGY (DAILY NAV), INC.,
a Maryland corporation (the
“Company”), COLE REAL ESTATE INCOME STRATEGY (DAILY NAV) OPERATING PARTNERSHIP, LP, a Delaware limited partnership (the
“Operating Partnership”) and COLE REAL ESTATE INCOME
STRATEGY (DAILY NAV) ADVISORS, LLC, a Delaware limited liability
company (the “Advisor”).

W I T N E S S E T H

     WHEREAS, the Company intends to issue shares of its common stock, par value $.01, to the
public, upon registration of such shares with the Securities and Exchange Commission pursuant to
the Securities Act of 1933, as amended;

     WHEREAS, the Company intends to qualify as a real estate investment trust and to invest its
funds in investments permitted by the terms of the Company’s Articles of Amendment and Restatement
and Sections 856 through 860 of the Internal Revenue Code;

     WHEREAS, the Company is the general partner of the Operating Partnership and intends to
conduct substantially all of its business through the Operating Partnership;

     WHEREAS, the Company and the Operating Partnership desire to avail themselves of the
experience, sources of information, advice, assistance and certain facilities available to the
Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on
behalf of, and subject to the supervision of the Board of Directors of the Company, all as provided
herein; and

     WHEREAS, the Advisor is willing to undertake to render such services, subject to the
supervision of the Board, on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     The following defined terms used in this Agreement shall have the meanings specified below:

Acquisition Expenses. Any and all expenses incurred by the Company, the Operating
Partnership, the Advisor, or any of their Affiliates in connection with the selection, evaluation,
structuring, acquisition or development of any Asset, whether or not acquired, including, without
limitation, legal fees and expenses, travel and communications expenses, costs of appraisals,
nonrefundable option payments on property not acquired, accounting fees and expenses, and title
insurance premiums.

Advisor.
Cole Real Estate Income Strategy (Daily NAV) Advisors, LLC, a Delaware limited liability company, any
successor advisor to the Company, the Operating Partnership or any Person to which Cole Real Estate
Income Strategy (Daily NAV) Advisors, LLC, or any successor advisor subcontracts all or substantially all of its
functions. Notwithstanding the foregoing, a Person hired or retained by Cole Real Estate Income
Strategy (Daily NAV) Advisors, LLC to perform sub-advisory or property management and related services for the Company
or the Operating Partnership that is not hired or retained to perform substantially all of the
functions of Cole Real Estate Income Strategy (Daily NAV) Advisors, LLC with respect to the Company or the Operating
Partnership as a whole shall not be deemed to be an Advisor.

Advisory Fee. The fee payable to the Advisor pursuant to Section 3.01(b) of this Agreement.

 

 

Affiliate or Affiliated. As to any Person, (i) any Person directly or indirectly
owning, controlling, or holding, with the power to vote, 10.0% or more of the outstanding voting
securities of such Person; (ii) any Person 10.0% or more of whose outstanding voting securities are
directly or indirectly owned, controlled, or held, with power to vote, by such other Person; (iii)
any Person, directly or indirectly, controlling, controlled by, or under common control with such
Person; (iv) any executive officer, director, trustee or general partner of such Person; and (v)
any legal entity for which such Person acts as an executive officer, director, trustee or general
partner.

Annual Total Return. As further described in Section 3.01, the investment return provided
to Stockholders shall be equal to, for all such Shares outstanding during the calendar year (or
such other applicable period), distributions paid per Share over the calendar year (or such other
applicable period), adjusted for change in NAV per share over the calendar year (or such other
applicable period).

Articles of Incorporation. The Articles of Incorporation of the Company filed with the
Maryland State Department of Assessments and Taxation in accordance with the Maryland General
Corporation Law, as amended from time to time.

Assets. Properties, Mortgages and other direct or indirect investments in equity interests
in, or loans secured by, Real Property owned by the Company, directly or indirectly through one or
more of its Affiliates.

Average Invested Assets. For a specified period, the average of the aggregate book value of
the Assets, before reserves for depreciation, amortization, bad debts or other similar non-cash
reserves, other than impairment charges, computed by taking the average of such values at the end
of each business day during such period.

Board. The Board of Directors of the Company.

Business Day. Any day the New York Stock Exchange is open for trading.

Bylaws. The bylaws of the Company, as the same are in effect as amended from time to time.

Change of Control. Any event (including, without limitation, issue, transfer or other
disposition of Shares of capital stock of the Company or equity interests in the Operating
Partnership, merger, share exchange or consolidation) after which any “person” (as that term is
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes
the “beneficial owner” (as defined in Rule 13d-j of the Securities Exchange Act of 1934, as
amended), directly or indirectly, of securities of the Company or the Operating Partnership
representing greater than 50% or more of the combined voting power of the Company’s or the
Operating Partnership’s then outstanding securities, respectively; provided, that, a Change of
Control shall not be deemed to occur as a result of any widely distributed public offering of the
Shares.

Code. Internal Revenue Code of 1986, as amended from time to time, or any successor statute
thereto. Reference to any provision of the Code shall mean such provision as in effect from time to
time, as the same may be amended, and any successor provision thereto, as interpreted by any
applicable regulations as in effect from time to time.

Company.
Cole Real Estate Income Strategy (Daily NAV), Inc., a corporation organized under the laws of the
State of Maryland.

Dealer Manager. Cole Capital Corporation, an Affiliate of the Advisor, or such Person
selected by the Board to act as the dealer manager for an Offering.

Dealer Manager Fee. The dealer manager fee payable to the Dealer Manager as described in
the Company’s Prospectus.

Director. A member of the Board.

Distributions. Any dividends or other distributions of money or other property by the
Company to owners of Shares, including distributions that may constitute a return of capital for
federal income tax purposes.

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Fees. The Advisory Fee and the Performance Fee.

Gross Proceeds. The aggregate purchase price of all Shares sold for the account of the
Company through an Offering, without deduction for Dealer Manager Fees or Organization and Offering
Expenses. For the purpose of computing Gross Proceeds, the purchase price of any Share for which
reduced Dealer Manager Fees are paid to the Dealer Manager or a Soliciting Dealer (where net
proceeds to the Company are not reduced) shall be deemed to be the full amount of the Offering
price per Share pursuant to the Prospectus for such Offering without reduction.

Independent Director. A Director who is not, and within the last two years has not been,
directly or indirectly associated with the Sponsor or the Advisor by virtue of (i) ownership of an
interest in the Sponsor, the Advisor or any of their Affiliates, (ii) employment by the Sponsor,
the Advisor or any of their Affiliates, (iii) service as an officer or director of the Sponsor, the
Advisor or any of their Affiliates, (iv) performance of services, other than as a Director, for the
Company, (v) service as a director or trustee of more than three real estate investment trusts
organized by the Sponsor or advised by the Advisor or (vi) maintenance of a material business or
professional relationship with the Sponsor, the Advisor or any of their Affiliates. A business or
professional relationship is considered “material” per se if the gross revenue derived by the
prospective Independent Director from the Sponsor, the Advisor and their Affiliates exceeds 5.0% of
either (x) the prospective Independent Director’s annual gross revenue, derived from all sources,
during either of the last two years, or (y) the prospective Independent Director’s net worth on a
fair market value basis. An indirect relationship with the Sponsor or the Advisor shall include
circumstances in which a Director’s spouse, parent, child, sibling, mother- or father-in-law, son-
or daughter-in-law, or brother- or sister-in-law is or has been associated with the Sponsor, the
Advisor, any of their Affiliates or the Company.

Independent Valuation Expert. A firm that is (i) engaged to a substantial degree in the
business of conducting appraisals of real estate portfolios, (ii) not affiliated with the Advisor
and (iii) engaged by the Company with the approval of the Board to appraise the Assets pursuant to
the Valuation Guidelines.

Joint Ventures. The joint venture or partnership arrangements in which the Company or the
Operating Partnership is a co-venturer or general partner which are established to acquire or hold
Assets.

Mortgages. In connection with mortgage financing provided, invested in or purchased by the
Company, all of the notes, deeds of trust, security interests or other evidences of indebtedness or
obligations, which are secured or collateralized by Real Property owned by the borrowers under such
notes, deeds of trust, security interests or other evidences of indebtedness or obligations.

NASAA Guidelines. The Statement of Policy Regarding Real Estate Investment Trusts published
by the North American Securities Administrators Association, Inc. on May 7, 2007, and in effect on
the date hereof.

NAV. The Company’s net asset value, calculated pursuant to the Valuation Guidelines.

Net Income. For any period, the Company’s total revenues applicable to such period, less
the total expenses applicable to such period other than additions to reserves for depreciation, bad
debts or other similar non-cash reserves and excluding any gain from the sale of the Assets or
Other Investments.

Offering. Any public offering and sale of Shares pursuant to an effective registration
statement filed under the Securities Act, other than a public offering of Shares under a
distribution reinvestment plan and Shares offered under any employee benefit plan.

Operating Expenses. All costs and expenses paid or incurred by the Company, as determined
under generally accepted accounting principles which are in any way related to the operation of the
Company or to Company business, including the Advisory Fee, but excluding (i) the expenses of
raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such expenses and tax incurred
in connection with the issuance, distribution, transfer and registration of securities, (ii)
interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and
bad debt reserves, (v) incentive fees paid in compliance with the NASAA Guidelines; (vi)
Acquisition Expenses,

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(vii)
real estate commissions on the sale of Real Property, and (viii) other fees and expenses connected
with the acquisition, disposition, management and ownership of real estate interests, mortgages or
other property (including the costs of foreclosure, insurance premiums, legal services,
maintenance, repair, and improvement of property). The definition of “Operating Expenses” set forth
above is intended to encompass only those expenses which are required to be treated as Operating
Expenses under the NASAA Guidelines. As a result, and notwithstanding the definition set forth
above, any expense of the Company which is not part of Operating Expenses under the NASAA
Guidelines shall not be treated as part of Operating Expenses for purposes hereof.

Operating Partnership. Operating Partnership shall have the meaning set forth in the
preamble of the Agreement.

Organization and Offering Expenses. All expenses incurred by and to be paid from the assets
of the Company in connection with and in preparing the Company for registration of and subsequently
offering and distributing its Shares to the public, including, but not limited to, total
underwriting and brokerage discounts and commissions (including fees of the underwriters’
attorneys); expenses for printing, engraving and mailing; salaries of employees while engaged in
sales activities; charges of transfer agents, registrars, trustees, escrow holders, depositaries
and experts; and expenses of qualification of the sale of the securities under federal and state
laws, including taxes and fees; and accountants’ and attorneys’ fees.

Other Investments. Any investments by the Company or the Operating Partnership in (i) debt
and equity interests that are unrelated to real estate, including (a) securities such as common
stocks, preferred stocks and options to acquire stock and (b) debt and derivative securities; and
(ii) transactions designed to limit the Company’s or the Operating Partnership’s exposure to market
volatility, illiquidity, interest rate or other risk related to the Company’s or the Operating
Partnership’s real-estate related, equity or debt securities.

Performance Fee. The fee payable to the Advisor pursuant to Section 3.01(c) of this
Agreement.

Person. An individual, corporation, business trust, estate, trust, partnership, limited
liability company or other legal entity.

Priority Return. Priority Return Percentage has the meaning set forth in 3.01(c).

Property or Properties. As the context requires, any, or all, respectively, of the
Real Property acquired by the Company, either directly or indirectly (whether through Joint Venture
or other partnership or investment interests).

Prospectus. Prospectus has the meaning set forth in Section 2(10) of the Securities Act,
including a preliminary prospectus, an offering circular as described in Rule 253 of the General
Rules and Regulations under the Securities Act or, in the case of an intrastate offering, any
document by whatever name known, utilized for the purpose of offering and selling securities of the
Company to the public.

Real Estate Related Assets. Any investments by the Company or the Operating Partnership in
(i) mortgage, mezzanine, bridge and other loans on Real Property, (ii) equity securities such as
common stocks, preferred stocks and convertible securities of public or private real estate
companies, and (iii) debt securities such as collateralized mortgage backed securities, commercial
mortgages and other debt securities.

Real Property. Land, rights in land (including leasehold interests), and any buildings,
structures, improvements, furnishings, fixtures and equipment located on or used in connection with
land and rights or interests in land owned from time to time by Company, the Operating Partnership
or subsidiary thereof, either directly or through Joint Ventures.

REIT. A corporation, trust, association or other legal entity (other than a real estate
syndication) that is engaged primarily in investing in equity interests in real estate (including
fee ownership and leasehold interests) or in loans secured by real estate or both in accordance
with Sections 856 through 860 of the Code.

Registration Statement. That certain registration statement on Form S-11, as amended, of
the Company filed with the Securities and Exchange Commission related to the registration of the
Shares for the Company’s initial Offering.

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Securities Act. The Securities Act of 1933, as amended from time to time, or any successor
statute thereto. Reference to any provision of the Securities Act shall mean such provision as in
effect from time to time, as the same may be amended, and any successor provision thereto, as
interpreted by any applicable regulations as in effect from time to time.

Shares. Any Shares of the Company’s common stock, par value $.01 per share.

Soliciting Dealers. Broker-dealers who are members of the Financial Industry Regulatory
Authority, Inc., or that are exempt from broker-dealer registration, and who, in either case, have
executed participating broker or other agreements with the Dealer Manager to sell Shares.

Sponsor. Cole Holdings Corporation.

Stockholders. The record holders of the Shares as maintained in the books and records of
the Company or its transfer agent.

Sub-Advisor. Sub-Advisor and Sub-Advisors shall have the meaning set forth in Section 2.04.

Termination Date. The date of termination of this Agreement.

Valuation Guidelines. The valuation guidelines adopted by the Board, as amended from time
to time and as described in the Company’s Prospectus.

2%/25% Guidelines. The requirement pursuant to the NASAA Guidelines that, in any four
consecutive fiscal quarters, total Operating Expenses not exceed the greater of 2% of Average
Invested Assets during such period or 25% of Net Income over the same period.

ARTICLE II

THE ADVISOR

2.01 Appointment. The Company hereby appoints the Advisor to serve as its advisor on the
terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment.
By accepting such appointment, the Advisor acknowledges that it has contractual and fiduciary
responsibility to the Company and the Stockholders.

2.02 Duties of the Advisor. Subject to Section 2.08, the Advisor undertakes to use its
commercially reasonable best efforts to present to the Company potential investment opportunities
consistent with the investment objectives and policies of the Company as determined and adopted
from time to time by the Board. In performance of this undertaking, subject to the supervision of
the Board and consistent with the provisions of the Company’s most recent Prospectus for Shares,
Articles of Incorporation and Bylaws, the Advisor shall, either directly or by engaging a duly
qualified and licensed Affiliate of the Advisor or other duly qualified and licensed Person:

     (a) serve as the Company’s investment and financial advisor and provide research and economic
and statistical data in connection with the Assets and the Company’s investment policies;

     (b) determine the proper allocation of the Company’s and Operating Partnership’s Assets
between (i) retail, office and industrial properties, (ii) Real Estate Related Assets and Other
Investments, and (iii) cash and cash equivalents and other short-term investments;

     (c) select a Sub-Advisor, joint venture and strategic partners, and service providers for the
Company and structure corresponding agreements;

     (d) provide the daily management of the Company and perform and supervise the various
administrative functions reasonably necessary for the management and operations of the Company;

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     (e) provide property management and leasing services;

     (f) maintain and preserve the books and records of the Company, including stock books and
records reflecting a record of the Stockholders and their ownership of the Company’s Shares;

     (g) investigate, select, and, on behalf of the Company and the Operating Partnership, engage
and conduct business with such Persons as the Advisor deems necessary to the proper performance of
its obligations hereunder, including but not limited to consultants, accountants, correspondents,
lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks,
builders, developers, property owners, mortgagors, property management companies, transfer agents
and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons
acting in any other capacity deemed by the Advisor necessary or desirable for the performance of
any of the foregoing services, including but not limited to entering into contracts in the name of
the Company with any of the foregoing;

     (h) consult with, and provide information to, the officers and the Board and assist the Board
in the formulation and implementation of the Company’s financial policies, and, as necessary,
furnish the Board with advice and recommendations with respect to the making of investments
consistent with the investment objectives and policies of the Company and in connection with any
borrowings proposed to be undertaken by the Company;

     (i) subject to the provisions of Sections 2.02(m) and 2.03 hereof, (i) locate, analyze and
select potential investments in Assets and Other Investments, (ii) structure and negotiate the
terms and conditions of transactions pursuant to which investment in Assets and Other Investments
will be made; (iii) make investments in Assets and Other Investments on behalf of the Company or
the Operating Partnership in compliance with the investment objectives and policies of the Company;
(iv) arrange, structure and negotiate financing and refinancing and make other changes in the asset
or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal
with the investments in, Assets and Other Investments; (v) enter into leases of Property and
service contracts for Assets; and (vi) review and analyze each Property’s operating and capital
budget; and, to the extent necessary, perform all other operational functions for the maintenance
and administration of such Assets, including the servicing of Mortgages;

     (j) provide input in connection with the valuations performed by the Independent Valuation
Expert;

     (k) monitor the Independent Valuation Expert’s valuation process to ensure that it complies
with the Valuation Guidelines and report on such compliance to the Board on a quarterly basis;

     (l) provide the Board with periodic reports regarding prospective investments in Assets and
Other Investments;

     (m) if a transaction requires approval by the Board, deliver to the Board all documents
required by them to properly evaluate the proposed transaction;

     (n) obtain the prior approval of a majority of the Independent Directors and a majority of the
Board not otherwise interested in any transaction with the Advisor or its Affiliates;

     (o) negotiate on behalf of the Company with banks or lenders for loans to be made to the
Company, negotiate on behalf of the Company with investment banking firms and broker-dealers, and
negotiate private sales of Shares and other securities of the Company or obtain loans for the
Company, as and when appropriate, but in no event in such a way so that the Advisor shall be acting
as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third
parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the
Company;

     (p) obtain reports (which may be prepared by or for the Advisor or its Affiliates), where
appropriate, concerning the value of investments or contemplated investments of the Company in
Assets and Other Investments;

     (q) from time to time, or at any time reasonably requested by the Board, make reports to the
Board of its performance of services to the Company under this Agreement;

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     (r) provide the Company with, or assist the Company in arranging for, all necessary cash
management services;

     (s) deliver to or maintain on behalf of the Company copies of all appraisals obtained in
connection with the investments in Assets and Other Investments;

     (t) upon request of the Company, act, or obtain the services of others to act, as
attorney-in-fact or agent of the Company in making, requiring and disposing of Assets and Other
Investments, disbursing, and collecting the funds, paying the debts and fulfilling the obligations
of the Company and handling, prosecuting and settling any claims of the Company, including
foreclosing and otherwise enforcing mortgage and other liens and security interests comprising any
of the Assets and Other Investments;

     (u) arrange for the disposal of Properties on the Company’s behalf in compliance with the
Company’s investment objectives and policies as stated in the Company’s most recent Prospectus for
Shares;

     (v) supervise the preparation and filing and distribution of returns and reports to
governmental agencies and to Stockholders and other investors and act on behalf of the Company in
connection with investor relations;

     (w) oversee recruitment and hiring of personnel who will have direct responsibility for the
operations of each property we acquire, which may include, but is not limited to, on-site managers
and building and maintenance personnel, and direct and establish policies for such personnel;

     (x) provide office space, equipment and supplies as required for the performance of the
foregoing services as Advisor;

     (y) assist the Company in preparing all reports and returns required by the Securities and
Exchange Commission, Internal Revenue Service and other state or federal governmental agencies; and

     (z) do all things necessary to assure its ability to render the services described in this
Agreement.

2.03 Authority of Advisor. Pursuant to the terms of this Agreement, including the duties
set forth in Section 2.02 and the restrictions included in this Section 2.03 and in Section 2.07,
and subject to the continuing and exclusive authority of the Board over the management of the
Company, the Board hereby delegates to the Advisor the authority to (i) find and evaluate
investment opportunities for the Company and the Operating Partnership consistent with the
Company’s investment objectives, (ii) structure the terms and conditions of transactions pursuant
to which investments will be made or acquired for the Company or the Operating Partnership, (iii)
acquire Properties, make and acquire Mortgages and other loans and invest in Assets and Other
Investments in compliance with the investment objectives and policies of the Company, (iv) arrange
for financing and refinancing of Assets, (v) enter into leases for the Properties and service
contracts for the Assets with duly qualified and licensed non-affiliated and Affiliated Persons,
including oversight of non-affiliated and Affiliated Persons that perform property management,
acquisition, advisory, disposition or other services for the Company, and (vi) arrange for, or
provide, accounting and other record-keeping functions at the Asset level.

     The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the
authority set forth in this Section 2.03, provided however, that such modification or revocation
shall be effective upon receipt by the Advisor or such later date as is specified by the Board and
included in the notice provided to the Company and such modification or revocation shall not be
applicable to investment transactions to which the Advisor has committed the Company prior to the
date of receipt by the Advisor of such notification, or, if later, the effective date of such
modification or revocation specified by the Board.

2.04 Sub-Advisors. The Advisor is hereby authorized to enter into one or more sub-advisory
agreements with other investment advisors, including any Affiliate of the Advisor (each, a
“Sub-Advisor”) pursuant to which the Advisor may obtain the services of the Sub-Advisor(s) to
assist the Advisor in fulfilling any of its responsibilities hereunder. Specifically, the Advisor
may retain a Sub-Advisor to recommend specific real properties, securities or other investments
based upon the Company’s investment objectives, policies, guidelines and restrictions, and work,
along with the Advisor, in sourcing, structuring, negotiating, arranging or effecting the
acquisition or disposition of

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such investments and monitoring investments on behalf of the Company, subject to the oversight of
the Advisor and the Board.

     (a) Unless otherwise agreed upon by the Company, the Advisor and not the Company shall be
responsible for any compensation payable to any Sub-Advisor. Notwithstanding the foregoing, the
Company shall reimburse the Advisor for any expenses properly incurred by the Sub-Advisor, to the
extent such expenses would be reimbursable if incurred by the Advisor pursuant to the terms of
Section 3.02 hereof, in order for the Advisor to timely reimburse the Sub-Advisor for such
out-of-pocket costs.

     (b) Any sub-advisory agreement entered into by the Advisor shall be in accordance with the
requirements of the Articles of Incorporation, Bylaws, and all applicable federal and state laws
and regulations.

2.05 Bank Accounts. The Advisor may establish and maintain one or more bank accounts in its
own name for the account of the Company and the Operating Partnership and may collect and deposit
into any such account or accounts, and disburse from any such account or accounts, any money on
behalf of the Company or the Operating Partnership, under such terms and conditions as the Board
may approve, provided that no funds of the Company or the Operating Partnership shall be commingled
with the funds of the Advisor; and the Advisor shall from time to time, upon request by the Board,
its Audit Committee or the auditors of the Company, render appropriate accountings of such
collections and payments to the Board, its Audit Committee and the auditors of the Company.

2.06 Records; Access. The Advisor shall maintain appropriate records of all its activities
hereunder and make such records available for inspection by the Board and by counsel, auditors and
authorized agents of the Company, at any time or from time to time, upon reasonable request, during
normal business hours. The Advisor shall at all reasonable times have access to the books and
records of the Company and the Operating Partnership.

2.07 Limitations on Activities. Anything else in this Agreement to the contrary
notwithstanding, the Advisor shall refrain from taking any action which, in its sole
judgment made in good faith, would (a) adversely affect the status of the Company as a REIT, (b)
subject the Company to regulation under the Investment Company Act of 1940, as amended, (c) violate
any law, rule, regulation or statement of policy of any governmental body or agency having
jurisdiction over the Company, the Shares or its other securities, or (d) not be permitted by the
Articles of Incorporation or Bylaws, except if such action shall be ordered by the Board, in which
case the Advisor shall notify promptly the Board of the Advisor’s judgment of the potential impact
of such action and shall refrain from taking such action until it receives further clarification or
instructions from the Board. In such event the Advisor shall have no liability for acting in
accordance with the specific instructions of the Board so given. Notwithstanding the foregoing, the
Advisor, its directors, officers, employees and stockholders, and the directors, officers,
employees and stockholders of the Advisor’s Affiliates shall not be liable to the Company or to the
Board or Stockholders for any act or omission by the Advisor, its directors, officers, employees or
stockholders, or for any act or omission of any Affiliate of the Advisor, its directors, officers,
employees or stockholders, except as provided in Section 5.02 of this Agreement.

2.08 Other Activities of the Advisor. Nothing herein contained shall prevent the Advisor or
its Affiliates from engaging in other activities, including, without limitation, the rendering of
advice to other Persons (including other REITs) and the management of other programs advised,
sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict
the right of any director, officer, employee, or stockholder of the Advisor or its Affiliates to
engage in any other business or to render services of any kind to any other Person. The Advisor
may, with respect to any investment in which the Company is a participant, also render advice and
service to each and every other participant therein. The Advisor shall report to the Board the
existence of any condition or circumstance, existing or anticipated, of which it has knowledge,
which creates or could create a conflict of interest between the Advisor’s obligations to the
Company and its obligations to or its interest in any other Person. The Advisor or its Affiliates
shall promptly disclose to the Board knowledge of such condition or circumstance. If the Sponsor,
Advisor, any Director or Affiliates thereof have sponsored other investment programs with similar
investment objectives which have investment funds available at the same time as the Company, it
shall be the duty of the Board (including the Independent Directors) to adopt the method set forth
in the Company’s most recent Prospectus for its Shares or another reasonable method by which
investments are to be allocated to the competing investment entities and to use their best efforts
to apply such method fairly to the Company.

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ARTICLE III

COMPENSATION

3.01 Fees.

     (a) The Advisor shall receive an Advisory Fee and Performance Fee as compensation for the
services rendered hereunder. The Advisor is not entitled to acquisition, disposition or financing
fees.

     (b) The Advisory Fee will be payable in arrears on a monthly basis and accrue daily in an
amount equal to 1/365th of 0.90% of the NAV for each day.

     (c) The Performance Fee will not be paid for any calendar year in which the Annual Total
Return as a percentage of Stockholders’ invested capital as of the last Business Day of such
calendar year is less than or equal to 6%. The Performance Fee will equal 25.0% of the difference
between (i) the Annual Total Return and (ii) the amount required to provide the Stockholders an
Annual Total Return of 6% for the measurement period (the “Priority Return”). In no event will the
Performance Fee exceed 10.0% of the Annual Total Return in any calendar year. The Priority Return
calculation will reflect fluctuations in the actual number of Shares outstanding during the year,
such that for Shares outstanding for less than 12 months (because of new Share issuances and/or
Share redemptions) a pro rated Annual Total Return will be determined for the partial period those
Shares were outstanding based on the NAV per share associated with them. On a daily basis the
Advisor will utilize the annualized internal rate of return (or if such rate of return is negative,
zero) on Stockholders’ invested capital based on NAV starting from the last calendar day of the
prior calendar year (Day 1) and ending on the then current day (Day N). For such internal rate of
return calculation, (i) the beginning investment value shall be equal to the NAV at the end of Day
1 (after accrual of all fees and expenses attributable to that year), (ii) the ending investment
value shall be NAV after accrual of all expenses and distributions, but prior to any purchases,
redemptions and distributions, on Day N, and (iii) for each day between Day 1 and Day N net daily
investment inflows or outflows, as applicable, will be factored in, specifically all Share
redemptions and accrued distributions less the total of the gross proceeds the Company receives
from the sale of Shares in the Offering on such day. The Performance
Fee for each calendar year for which the fee is payable shall be paid
on or before the earlier of (y) promptly after
the audited financial statements for such calendar year become
available, or (z) March 15 of the year following such calendar year, provided that if this
Agreement or its term expires without renewal prior to December 31 of any calendar year, then the
Performance Fee for such partial year shall be payable promptly after the Company files its
unaudited financial statements on Form 10-Q for the quarter that
includes the Termination Date, but in no event later than March 15 of
the year following the partial year for such quarterly unaudited
financial statements.
The Performance Fee shall be payable for each calendar year in which this Agreement is in effect,
even if the Agreement is in effect for less than a full calendar year.

     (d) The Fees are payable in cash, unless the Company or the Operating Partnership elects, with
the Advisor’s consent, to pay in Shares, a promissory note or any combination of the foregoing.

     (e) In the event the Company or the Operating Partnership commences a liquidation of its
Investments during any calendar year, the Company will pay the Advisor the Fees from the proceeds
of the liquidation and the Performance Fee will be calculated at the end of the liquidation period
prior to the distribution of the liquidation proceeds to the Stockholders.

     (f) In the event this Agreement is terminated or its term expires without renewal, the Fees
will be calculated and due and payable after the calculation of NAV on the Termination Date. If the
Fees are payable with respect to any partial calendar month or calendar year, the Advisory Fee will
be prorated based on the number of days elapsed during any partial calendar month and the
Performance Fee will be prorated based on the number of days elapsed during any partial calendar
year and Annual Total Return achieved for the period of such partial calendar year.

9

 

3.02 Expenses.

     (a) As required by the NASAA Guidelines, Dealer Manager Fees and Organization and Offering
Expenses paid by the Company will not exceed 15.0% of Gross Proceeds from the sale of Shares in the
Offering.

     (b) In addition to the compensation paid to the Advisor pursuant to Section 3.01 hereof, the
Company or the Operating Partnership shall pay directly or reimburse the Advisor for all of the
expenses paid or incurred by the Advisor in connection with the services it provides to the Company
and the Operating Partnership pursuant to this Agreement, including, but not limited to:

          (i) Organization and Offering Expenses; provided that within 60 days after the end of the
month in which an Offering terminates, the Advisor shall reimburse the Company to the extent the
Organization and Offering Expenses and Dealer Manager Fees borne by the Company exceed 15.0% of the
Gross Proceeds raised in the completed Offering;

          (ii) Acquisition Expenses incurred in connection with the selection and acquisition of Assets,
including such expenses incurred related to assets pursued or considered but not ultimately
acquired by the Company, subject to limitations set forth in the Articles of Incorporation;

          (iii) the actual cost of goods, services and materials used by the Company and obtained from
Persons not affiliated with the Advisor, other than Acquisition Expenses, including property
management and leasing services;

          (iv) interest and other costs for borrowed money, including discounts, points and other
similar fees;

          (v) taxes and assessments on income or property and taxes as an expense of doing business and
any other taxes otherwise imposed on the Company and its business, assets or income;

          (vi) costs associated with insurance required in connection with the business of the Company
or by the Board;

          (vii) expenses of managing and operating Assets and Other Investments owned by the Company,
whether payable to an Affiliate of the Company, including wages and salaries and other personnel
related expenses, unless otherwise waived, in whole or in part, by the Affiliate in its sole
discretion, of all on-site and off-site employees of the Affiliate who are engaged in the
operation, management, maintenance and leasing or access control of the Asset, or to a
non-affiliated Person;

          (viii) all expenses in connection with payments to the Board for attending meetings of the
Board and Stockholders;

          (ix) expenses associated with the issuance and distribution of Shares and other securities of
the Company, such as underwriting fees, advertising expenses, legal and accounting fees, taxes and
registration fees;

          (x) expenses connected with payments of Distributions in cash or otherwise made or caused to
be made by the Company to the Stockholders

          (xi) expenses of organizing, reorganizing, liquidating or dissolving the Company or of
amending the Articles of Incorporation or the Bylaws;

          (xii) expenses of any third party transfer agent for the Shares and of maintaining
communications with Stockholders, including the cost of preparation, printing, and mailing annual
reports and other Stockholder reports, proxy statements and other reports required by governmental
entities;

          (xiii) administrative service expenses, including all costs and expenses incurred by Advisor
in fulfilling its duties hereunder. Such costs and expenses may include reasonable wages and
salaries and other personnel-
related expenses of all employees of Advisor or its Affiliates who are engage in the
management, administration,

10

 

operations, and marketing of the Company and its Assets, including
taxes, insurance and benefits relating to such employees, and legal, travel and other out-of-pocket
expenses which are directly related to their services provided hereunder, provided, however that no
reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to the
extent that such employees perform services for which the Advisor receives a separate fee; and

          (xiv) audit, accounting and legal fees, and other fees and expenses associated with regulatory
compliance.

     (c) Expenses, other than Organization and Offering Expenses, incurred by the Advisor on behalf
of the Company and the Operating Partnership and payable pursuant to this Section 3.02 shall be
reimbursed no less than quarterly to the Advisor within 60 days after the end of each quarter. The
Advisor shall prepare a statement documenting the expenses of the Company and the Operating
Partnership during each quarter, and shall deliver such statement to the Company and the Operating
Partnership within forty-five (45) days after the end of each quarter.

     (d) Organization and Offering Expenses incurred by the Advisor shall be reimbursed, beginning
on the date the Offering proceeds are released from escrow as set forth in the Registration
Statement, no less than monthly to the Advisor within twenty-eight (28) days after the end of each
month. The aggregate amount reimbursed each month can never exceed 0.75% of the aggregate Gross
Proceeds from the sale of Shares in the Offering, including shares issued in connection with the
Company’s distribution reinvestment plan. If the sum of the total unreimbursed amount of such
Organization and Offering Expenses, plus new Organization and Offering Expenses incurred since the
last reimbursement payment, exceeds the reimbursement limit described in the previous sentence for
the applicable monthly installment, the excess will be eligible for reimbursement in subsequent
months (subject to the 0.75% limit) calculated on an accumulated basis, until the Advisor has been
reimbursed in full. The Advisor shall prepare a statement documenting the Organization and
Offering Expenses of the Company and the Operating Partnership during each month, and shall deliver
such statement to the Company and the Operating Partnership within twenty (20) days after the end
of each month.

     (e) The expense reimbursements payable to the Advisor are payable in cash, unless the Company
or the Operating Partnership elects, with the Advisor’s consent, to pay in Shares, a promissory
note or any combination of the foregoing.

3.03 Other Services. Should the Board request that the Advisor or any director, officer or
employee thereof render services for the Company other than set forth in Section 2.02, such
services shall be separately compensated at such rates and in such amounts as are agreed by the
Advisor and the Board, subject to the limitations contained in the Articles of Incorporation, and
shall not be deemed to be services pursuant to the terms of this Agreement.

3.04 Reimbursement to the Advisor. The Company shall not reimburse the Advisor, at the end
of any fiscal quarter, for any Operating Expenses to the extent that, in the four consecutive
fiscal quarters then ended (the “Expense Year”) the Operating Expenses exceed (the “Excess Amount”)
the greater of (i) 2% of Average Invested Assets or (ii) 25% of Net Income (the “2%/25%
Guidelines”) for that period of four consecutive quarters unless the Independent Directors
determine that such excess was justified, based on unusual and nonrecurring factors which the
Independent Directors deem sufficient. If the Independent Directors do not approve such excess as
being so justified, any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid
to the Company. If the Independent Directors determine such excess was justified, then within 60
days after the end of any fiscal quarter of the Company for which total reimbursed Operating
Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of the
Independent Directors, shall send our stockholders written disclosure of such fact, together with
an explanation of the factors the Independent Directors considered in determining that such excess
expenses were justified. The Company will ensure that such determination will be reflected in the
minutes of the meetings of the Board. All figures used in the foregoing computation shall be
determined in accordance with generally accepted accounting principles applied on a consistent
basis.

ARTICLE IV

TERM AND TERMINATION

4.01 Term; Renewal. Subject to Section 4.02 hereof, this Agreement has a one-year term and
shall continue in force until the first anniversary of the date hereof. Thereafter, this Agreement
may be renewed for an unlimited number of successive one-year terms upon mutual consent of the
parties. It is the Board’s Duty to evaluate the

11

 

performance of the Advisor annually before renewing
the Agreement, and each such renewal shall be for a term of no more than one year.

4.02 Termination. This Agreement may be terminated at the option of either party (i)
immediately upon a Change of Control or (ii) upon 60 days written notice without cause or penalty
(in either case, if termination is by the Company, then such termination shall be upon the approval
of a majority of the Independent Directors). Notwithstanding the foregoing, the provisions of this
Agreement which provide for payment to the Advisor of expenses, fees or other compensation
following the date of termination (i.e., Sections 3.01(e) and 4.03) shall continue in full force
and effect until all amounts payable thereunder to the Advisor are paid in full. The provisions of
Sections 2.06, 2.07 and 4.03 through 6.11 shall survive the termination of this Agreement.

4.03 Payments to and Duties of Advisor upon Termination.

     (a) After the Termination Date, the Advisor shall not be entitled to compensation for further
services hereunder except it shall be entitled to and receive from the Company or the Operating
Partnership within 30 days after the effective date of such termination all unpaid reimbursements
of expenses, subject to the provisions of Section 3.04 hereof, and all liabilities related to fees
earned but not paid to the Advisor prior to termination of this Agreement, subject to the 2%/25%
Guidelines to the extent applicable.

     (b) The Advisor shall promptly upon termination:

          (i) pay over to the Company and the Operating Partnership all money collected and held for the
account of the Company and the Operating Partnership pursuant to this Agreement, after deducting
any accrued compensation and reimbursement for its expenses to which it is then entitled;

          (ii) deliver to the Board a full accounting, including a statement showing all payments
collected by it and a statement of all money held by it, covering the period following the date of
the last accounting furnished to the Board;

          (iii) deliver to the Board all assets, including the Assets and Other Investments, and
documents of the Company and the Operating Partnership then in the custody of the Advisor; and

          (iv) cooperate with, and take all reasonable actions requested by, the Company and the
Operating Partnership to provide an orderly management transition.

ARTICLE V

INDEMNIFICATION

5.01

     (a) The Company shall indemnify and hold harmless the Advisor and its Affiliates, including
their respective officers, directors, partners and employees, from all liability, claims, damages
or losses arising in the performance of their duties hereunder, and related expenses, including
reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related
expenses are not fully reimbursed by insurance, subject to any limitations imposed by the laws of
the State of Maryland, the Articles of Incorporation and the NASAA Guidelines under the Articles of
Incorporation. The Company shall not indemnify or hold harmless the Advisor or its Affiliates,
including their respective officers, directors, partners and employees, for any liability or loss
suffered by the Advisor or its Affiliates, including their respective officers, directors, partners
and employees, nor shall it provide that the Advisor or its Affiliates, including their respective
officers, directors, partners and employees, be held harmless for any loss or liability suffered by
the Company, unless all of the following conditions are met: (i) the Advisor or its Affiliates,
including their respective officers, directors, partners and employees, have determined, in good
faith, that the course of conduct which caused the loss or liability was in the best interests of
the Company; (ii) the Advisor or its Affiliates, including their respective officers, directors,
partners and employees, were acting on behalf of or
performing services of the Company; (iii) such liability or loss was not the result of
negligence or misconduct by the Advisor or its Affiliates, including their respective officers,
directors, partners and employees; and (iv) such indemnification or agreement to hold harmless is
recoverable only out of the Company’s net assets and not from

12

 

Stockholders. Notwithstanding the
foregoing, the Advisor and its Affiliates, including their respective officers, directors, partners
and employees, shall not be indemnified by the Company for any losses, liability or expenses
arising from or out of an alleged violation of federal or state securities laws by such party
unless one or more of the following conditions are met: (i) there has been a successful
adjudication on the merits of each count involving alleged securities law violations as to the
particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court
of competent jurisdiction as to the particular indemnitee; and (iii) a court of competent
jurisdiction approves a settlement of the claims against a particular indemnitee and finds that
indemnification of the settlement and the related costs should be made, and the court considering
the request for indemnification has been advised of the position of the Securities and Exchange
Commission and of the published position of any state securities regulatory authority in which
securities of the Company were offered or sold as to indemnification for violations of securities
laws.

     (b) The Articles of Incorporation provide that the advancement of Company funds to the Advisor
or its Affiliates, including their respective officers, directors, partners and employees, for
legal expenses and other costs incurred as a result of any legal action for which indemnification
is being sought is permissible only if all of the following conditions are satisfied: (i) the legal
action relates to acts or omissions with respect to the performance of duties or services on behalf
of the Company; (ii) the legal action is initiated by a third-party who is not a Stockholder or the
legal action is initiated by a Stockholder acting in his or her capacity as such and a court of
competent jurisdiction specifically approves such advancement; (iii) the Advisor or its Affiliates,
including their respective officers, directors, partners and employees, undertake to repay the
advanced funds to the Company together with the applicable legal rate of interest thereon, in cases
in which such Advisor or its Affiliates, including their respective officers, directors, partners
and employees, are found not to be entitled to indemnification.

     (c) Notwithstanding the provisions of this Section 5.01, the Advisor shall not be entitled to
indemnification or be held harmless pursuant to this Section 5.01 for any activity which the
Advisor shall be required to indemnify or hold harmless the Company pursuant to Section 5.02.

5.02 Indemnification by Advisor. The Advisor shall indemnify and hold harmless the Company
and the Operating Partnership from contract or other liability, claims, damages, taxes or losses
and related expenses including attorneys’ fees, to the extent that (i) such liability, claims,
damages, taxes or losses and related expenses are not fully reimbursed by insurance and (ii) are
incurred by reason of the Advisor’s bad faith, fraud, misfeasance, misconduct, negligence or
reckless disregard of its duties. The Advisor shall not be held responsible for any action of the
Board in following or declining to follow any advice or recommendation given by the Advisor.

ARTICLE VI

MISCELLANEOUS

6.01 Assignment to an Affiliate. This Agreement may be assigned by the Advisor to an
Affiliate of the Advisor with the approval of a majority of the Board (including a majority of the
Independent Directors). The Advisor may assign any rights to receive fees or other payments under
this Agreement without obtaining the approval of the Board. This Agreement shall not be assigned by
the Company without the consent of the Advisor, except in the case of an assignment by the Company
to a corporation or other organization which is a successor to all of the assets, rights and
obligations of the Company, in which case such successor organization shall be bound hereunder and
by the terms of said assignment in the same manner as the Company is bound by this Agreement. This
Agreement shall be binding on successors to the Company resulting from a Change of Control or sale
of all or substantially all the assets of the Company or the Operating Partnership, and shall
likewise be binding upon any successor to the Advisor.

6.02 Relationship of Advisor and Company. The Company and the Advisor are not
partners or joint venturers with each other, and nothing in this Agreement shall be construed to
make them such partners or joint venturers or impose any liability as such on either of them.

6.03 Notices. Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other
communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to
whom it is given, and shall be given by being delivered by hand or by overnight mail or other
overnight delivery service to the addresses set forth herein:

13

 

	 	 	 

	To the Directors and to the Company:

	 	Cole Real Estate Income Strategy
(Daily NAV), Inc.
	 

	 	2555 E. Camelback Road, Suite 400
	 

	 	Phoenix, Arizona 85016
	 

	 	Attention: Chief Executive Officer and President
	 
	 	 
	To the Operating Partnership:

	 	Cole Real Estate Income Strategy
(Daily NAV) Operating Partnership, LP
	 

	 	2555 E. Camelback Road, Suite 400
	 

	 	Phoenix, Arizona 85016
	 

	 	Attention: General Partner
	 
	 	 
	To the Advisor:

	 	Cole Real Estate Income Strategy
(Daily NAV) Advisors, LLC
	 

	 	2555 E. Camelback Road, Suite 400
	 

	 	Phoenix, Arizona 85016
	 

	 	Attention: President

Either party shall, as soon as reasonably practicable, give notice in writing to the other party of
a change in its address for the purposes of this Section 6.03.

6.04 Modification. This Agreement shall not be changed, modified, or amended, in whole or
in part, except by an instrument in writing signed by both parties hereto, or their respective
successors or assignees.

6.05 Severability. The provisions of this Agreement are independent of and severable from
each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of
the fact that for any reason any other or others of them may be invalid or unenforceable in whole
or in part.

6.06 Choice of Law; Venue. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of Arizona, and venue for any action brought
with respect to any claims arising out of this Agreement shall be brought exclusively in Maricopa
County, Arizona.

6.07 Entire Agreement. This Agreement contains the entire agreement and understanding among
the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof. This Agreement may not be modified or amended other than by an agreement
in writing signed by each of the parties hereto.

6.08 Waiver. Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver.

6.09 Gender; Number. Words used herein regardless of the number and gender specifically
used, shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context requires.

6.10 Headings. The titles and headings of sections and subsections contained in this
Agreement are for convenience only, and they neither form a part of this Agreement nor are they to
be used in the construction or interpretation hereof.

6.11 Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when the counterparts

14

 

hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the signatories.

6.12 Initial Investment. The Advisor or one of its Affiliates has contributed $200,000 (the
“Initial Investment”) in exchange for the initial issuance of Shares of the Company. The Advisor or
its Affiliates may not sell any of the Shares purchased with the Initial Investment while the
Advisor acts in an advisory capacity to the Company. The restrictions included above shall not
apply to any Shares acquired by the Advisor or its Affiliates other than the Shares acquired
through the Initial Investment. Neither the Advisor nor its Affiliates shall vote any Shares they
now own, or hereafter acquire, or consent that such shares be voted,
on matters submitted to the Stockholders regarding (i) the removal of
Cole Real Estate Income Strategy (Daily NAV) Advisors, LLC or any of
its Affiliates as the Advisor; (ii) the removal of any member of the
Board; or (iii) any transaction by and between the Company and the
Advisor, a member of the Board or any of their Affiliates.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

15

 

     IN WITNESS WHEREOF, the parties hereto have executed this Advisory Agreement as of the date
and year first above written.

	 	 	 	 	 
	 	

COLE REAL ESTATE INCOME 

STRATEGY (DAILY NAV), INC.

 	 
	 	By:  	/s/
Christopher H. Cole
	 
	 	 	Christopher H. Cole 	 
	 	 	Chief Executive Officer and President 	 
	 
	 	COLE REAL ESTATE INCOME

STRATEGY (DAILY NAV)

OPERATING PARTNERSHIP, LP

 	 
	 	 	By:  	Cole Real Estate Income Strategy
(Daily NAV), Inc. 
	 	 	 	Its General Partner 	 
	 
	 	 	 
	 	 	By:  	/s/
Christopher H. Cole

	 	 	 	Christopher H. Cole 	 
	 	 	 	Chief Executive Officer and President 	 
	 
	 	COLE REAL ESTATE
INCOME
STRATEGY (DAILY NAV)
ADVISORS, LLC

 	 
	 	By:  	/s/
Marc T. Nemer	 
	 	 	Marc T. Nemer 	 
	 	 	Chief Executive Officer and President 	 
	 

Signature page to Advisory Agreementexv10w2

Exhibit 10.2

Master Agreement

For Real Estate Valuation Services

Between:

Cole Real Estate Income Trust, Inc.

And

CB Richard Ellis, Inc. 

Valuation & Advisory Services

September 1, 2011

VALUATION & ADVISORY SERVICES

www.cbre.com

September 1, 2011

Mr. Mitchell Sabshon

Executive Vice President and Chief Operating Officer

COLE REAL ESTATE INVESTMENTS

2575 E. Camelback Road

Phoenix, AZ 85016

			
	RE:	 	Master Agreement for
Valuation Services 
 Cole Real Estate
Income Trust, Inc.

Dear Mr. Sabshon:

We are pleased to submit this master agreement and our Terms and Conditions for the
assignment related to the valuation services to Cole Real Estate Income Trust, Inc. We
appreciate this opportunity to be of service to you on this assignment. If you have
additional questions, please contact us.

Respectfully submitted,

CB Richard Ellis, Inc.

	 	 	 	 	 	 	 

	/s/ Thomas B. McDonnell
 

Thomas B. McDonnell, MAI, CCIM

	 	 
	 	/s/ Lee C. Holliday
 

Lee C. Holliday, MAI
	 	 
	President

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	T 312 233 8669

	 	 	 	T 404 812 5030	 	 
	F 312 233 8660

	 	 	 	F 404 812 5051	 	 
	E thomas.mcdonnell@cbre.com

	 	 	 	E lee.holliday@cbre.com	 	 

	 	 	 

	/s/ Michael R. Rowland
 

Michael R. Rowland, MAI, MRICS

	 	 
	Senior Managing Director
	 	 
	 
	 	 
	T 602 735 5508
	 	 
	F 602 735 5613
	 	 
	E michael.rowland@cbre.com
	 	 

 

 

Mr. Mitchell Sabshon

September 1, 2011

Page 2

AGREED AND ACCEPTED

FOR COLE REAL ESTATE INCOME TRUST, INC.

	 	 	 	 	 	 	 

	/s/ Christopher H. Cole
 

Signature

	 	 
	 	September 2, 2011
 

Date
	 	 
	 
	 	 	 	 	 	 
	Christopher H. Cole
 

Name

	 	 
	 	President
 

Title
	 	 
	 
	 	 	 	 	 	 
	(602) 778-8700
 

Phone Number

	 	 
	 	(602) 778-8796
 

Fax Number
	 	 
	 
	 	 	 	 	 	 
	ccole@colecapital.com
	 	 	 	 	 	 
	 

E-Mail Address

	 	 	 	 	 	 

 

 

CB RICHARD ELLIS   |   MASTER AGREEMENT FOR COLE REAL ESTATE INCOME TRUST, INC.

MASTER AGREEMENT

	 	 	 

	MASTER AGREEMENT
	 	 
	 
	 	 
	Engaging Party:

	 	Cole Real Estate Income Trust, Inc. (“Cole” or the “REIT”)
	 
	 	 
	Service Provider:

	 	CB Richard Ellis, Inc. (“CBRE”) Valuation and Advisory Services (“VAS”)
	 
	 	 
	Purpose:

	 	CBRE will estimate the market value of properties and real estate related
debt that may be acquired or incurred by Cole or any subsidiary of Cole from
time to time, as more fully described in Addendum B.
	 
	 	 
	Premise:

	 	The premise of each appraisal will be identified by Cole.
	 
	 	 
	Rights Appraised:

	 	The property rights to be appraised (i.e. fee simple, leased fee or
leasehold) will be identified by Cole.
	 
	 	 
	Notes Valued:

	 	Mortgage notes receivable to be valued will be identified by Cole.
	 
	 	 
	Reporting:

	 	CBRE will initially complete an appraisal presented in a self-contained
narrative report (“Initial Appraisal”) either in the course of Cole’s
acquisition of a portfolio property or for the first required reporting
period following Cole’s acquisition (where CBRE did not provide an
appraisal in the course of Cole’s acquisition). Additionally, Cole may
request that CBRE conduct an “Initial Appraisal” of real estate related
liabilities when incurred or assumed by Cole. In such case, the “Initial
Appraisal” bid will reflect and incorporate the appraisal of real estate
related liabilities.
	 
	 	 
	 

	 	Subsequently, CBRE will provide an appraisal presented in a restricted
narrative report (“Update Appraisal”) for each property and real
estate related debt on an ongoing basis. The first “Update Appraisal”
will be delivered in the first quarter following the first complete
quarter after the “Initial Appraisal”, In addition, CBRE or Cole will
request an “Update Appraisal" if there is a material change
known to the requesting party.
	 
	 	 
	Intended Use:

	 	The Intended Use of the “Initial Appraisal” and the “Update Appraisal” is to
estimate the market value of the property, asset, or liability for use by
Cole’s fund accountant to assist in the calculation of the daily Net Asset
Value (NAV) per share of Cole.

 

 

			
	 	 	 
	CB RICHARD ELLIS   |   MASTER AGREEMENT FOR COLE REAL ESTATE INCOME TRUST, INC.
	 	PAGE 2

MASTER AGREEMENT

	 	 	 

	Intended User:

	 	The Intended Users of the appraisals are Cole; the
REIT’s Advisor; the REIT’s fund accountant; as well
as its auditors, intermediaries and investors.
	 
	 	 
	Scope of Work:

	 	Refer to Addendum B for procedural detail with
respect to Scope of Work as well as for a
description of how material changes to properties
will be monitored. A dedicated hand selected
valuation team will be assembled. Their scope of
work for each assignment will include the following
steps:
	 
	 	 
	 

	 	Extent to Which the Property is Identified
	 
	 	 
	 

	 	•     CBRE will collect the relevant physical
characteristics about the subject via physical
identification and an inspection of both the
interior and exterior of the subject property.

	 
	 	 
	 

	 	•     The property will be further legally
identified physically through its postal address,
assessor’s records, the provided legal description
and the provided title report.

	 
	 	 
	 

	 	•     Economic characteristics of the subject will
be identified via an analysis of leases and/or
lease briefs between the lessor and lessee,
recent rent roll and historical operating
statements.

	 
	 	 
	 

	 	Extent to Which the Property is Inspected
	 
	 	 
	 

	 	•     A CBRE appraiser who is a designated member of
the Appraisal Institute (MAI) will conduct a
physical inspection of both the interior and
exterior of the subject property, as well as its
surrounding environs on the effective date of
appraisal as part of the course of the “Initial
Appraisal”.

	 
	 	 
	 

	 	•     Subsequently, once within the course of the
three years following acquisition, CBRE will
conduct a physical inspection
(“Re-inspection”) of the subject property. An
inspection form will be completed by CBRE and
delivered via iChannel. The dates of re-inspection
will be at CBRE’s discretion.

	 
	 	 
	 

	 	Type and Extent of the Data Researched
	 
	 	 
	 

	 	•     CBRE will physically inspect the micro and
macro market environments with respect to
physical and economic factors relevant to the
valuation process. 

	 
	 	 
	 

	 	•     This knowledge will be expanded through
interviews with regional and local market
participants, available published data and other
various resources.

 

 

			
	 	 	 
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MASTER AGREEMENT

	 	 	 

	 

	 	•     CBRE will also conduct regional and local research with respect to
applicable tax data, zoning requirements, flood zone status, demographics,
income and expense data, and comparable listing, sale and rental information.

	 
	 	 
	 

	 	Type and Extent of Analysis Applied
	 
	 	 
	 

	 	•     For the “Initial Appraisal”, CBRE will analyze the data gathered through
the use of appropriate and accepted appraisal methodology to arrive at a
probable value indication via each approach to value. All approaches to
value will be considered and utilized, including the Cost Approach, Sales
Comparison Approach, and Income Capitalization Approach.
Within the Income Capitalization Approach to value, both
a direct capitalization and discounted cash flow will be completed. The
discounted cash flow analysis will be completed utilizing the
Argus cash flow program. Additionally an estimate of Land Value,
Replacement Cost, and Insurable Value will be provided. For single tenant
properties, ago dark valuation will also be provided. CBRE will then
correlate and reconcile the results into a reasonable and defensible value
conclusion, and estimate a reasonable exposure time and marketing time
associated with the value estimate presented.

	 
	 	 
	 

	 	•     For the “Update Appraisal”, CBRE will analyze the data gathered through
the use of appropriate and accepted appraisal methodology to arrive at
a probable value indication. The Income Capitalization Approach to value
is anticipated to be the primary approach to value unless this approach is
not deemed reasonable by CBRE. Primary emphasis will be considered for
the discounted cash flow analysis, unless this approach is
otherwise deemed to be inappropriate. CBRE will then correlate and reconcile
the results into a reasonable and defensible value conclusion, and
estimate a reasonable exposure time and marketing time associated with the
value estimate presented.

	 
	 	 
	 

	 	•     For the valuation of real estate debt, CBRE will estimate the market
value of real estate related debt by using industry accepted
methodologies specific to each type of liability. Typically, mortgage loans
collateralized by real estate will be valued by comparing the differences
between the contractual loan terms and current market loan terms.

 

 

			
	 	 	 
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	 	PAGE 4

MASTER AGREEMENT

	 	 	 

	 

	 	      This comparison would generally involve the present value of the
remaining contractual payments and maturity amount at a market based
interest rate. The market interest rate would reflect the risks
associated with the loan, such as loan-to-value ratio, remaining loan
term, the quality of the underlying collateral or other security, and
credit risk, among other factors.

	 
	 	 
	 

	 	Reporting
	 
	 	 
	 

	 	•     For the “Initial Appraisal”, CBRE will complete a Self-Contained
Appraisal Report including the following:

	 
	 	 
	 

	 	      i. state the identity of the client and any intended users, by name or
type;

	 
	 

	 	      ii. state the intended use of the appraisal;

	 
	 

	 	      iii. describe information sufficient to identify the real estate or
personal property involved in the appraisal, including the physical and
economic property characteristics relevant to the assignment;

	 
	 

	 	      iv. state the property interest appraised;

	 
	 

	 	      v. state the type and definition of value and cite the source of the
definition;

	 
	 

	 	      vi. state the effective date of the appraisal and the date of the
report;

	 
	 

	 	      vii. describe the scope of work used to develop the appraisal;

	 
	 

	 	      viii. describe the information analyzed, the appraisal methods and
techniques employed, and the reasoning that supports the analyses,
opinions, and conclusions.

	 
	 

	 	      ix. state the use of the property, existing as of the date of value and
the use of the real estate reflected in the appraisal; and, when an
opinion of the highest and best use was developed by the appraiser,
describe the support and rationale for that opinion;

	 
	 

	 	      x. clearly and conspicuously state all extraordinary assumptions and
hypothetical conditions; and that their use might have affected the
assignment results; and

	 
	 

	 	      xi. include a signed certification in accordance with Standards Rule
2-3.

	 
	 	 
	 

	 	•     For the “Update Appraisal”, CBRE will complete a Restricted Use
Appraisal Report including the following:

	 
	 	 
	 

	 	      i. state the identity of the client by name or type;

 

 

			
	 	 	 
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MASTER AGREEMENT

	 	 	 

	 

	 	      ii. state the intended use of the appraisal

	 
	 

	 	      iii. state information sufficient to identify the real estate or
personal property involved in the appraisal;

	 
	 

	 	      iv. state the property interest appraised;

	 
	 

	 	      v. state the type of value and cite the source of its definition;

	 
	 

	 	      vi. state the effective date of the appraisal and the date of the
report;

	 
	 

	 	      vii. state the scope of work used to develop the appraisal;

	 
	 

	 	      viii. state the appraisal methods and techniques employed, state the
value opinion(s) and conclusion(s) reached and reference the
workfile;

	 
	 

	 	      ix. state the use of the property, existing as of the date of value
and the use of the real estate reflected in the appraisal; and, when
an opinion of the highest and best use was developed by the
appraiser, state that opinion;

	 
	 

	 	      x. clearly and conspicuously state all extraordinary assumptions and
hypothetical conditions; and that their use might have affected the
assignment results; and

	 
	 

	 	      xi. include a signed certification in accordance with Standards Rule
2-3.

	 
	 	 
	Appraisal Standards:

	 	All reports will be in compliance with the Uniform Standards of
Professional Appraisal Practice (USPAP).
	 
	 	 
	Valuation of RE
Related Debt:

	 	Conduct all mortgage valuations for each property on a rolling
quarterly basis. When debt is assumed as part of a property
acquisition, Cole may request that CBRE conduct the valuation of the
assumed debt. Part of the dedicated Cole valuation team will be
comprised of individuals from the Financial Reporting Group
within CBRE. These individuals are highly experienced in
mortgage valuations and have completed one off and
quarterly valuation assignments for REITS, private firms, public
companies as well as major property funds.
	 
	 	 
	Timing:

	 	Appraisals will be provided in accordance with the following schedule:
	 
	 	 
	 

	 	•     “Initial Appraisal”, draft due from CBRE according to the terms
outlined within the signed “Task Order Authorization Form”.

	 
	 	 
	

	 	•     The first “Update Appraisal” will be provided no later than 10
days prior to the end of the first quarter following the

 

 

			
	 	 	 
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MASTER AGREEMENT

	 	 	 

	 

	 	      first complete quarter
after the acquisition
appraisal is delivered
(e.g., for a property
acquired in February
and provided an
“initial Appraisal”
in February, the
first “Update
Appraisal” will be
delivered no later than
10 days prior to
September 30).
The subsequent
“Update Appraisals”
will be delivered 10
days prior to the end
of the following
quarters (December
31st, March
31st, June
30th and
September
30th).
Deliveries will be
scheduled on a “rolling
basis” to provide half
of the properties
“Update Appraisals”
between the 1st and
15th of the month and
half between the 16th
and end of month. 

	 
	 	 
	Due Diligence Material:

	 	CBRE will provide Cole
with access to CBRE’s
iChannel to deliver
standard due diligence
material requested to
complete each appraisal
assignment. iChannel
is a secure, web-based
document management
site, available on a
24-hour basis. The CBRE
VAS Technology director
will work with Cole to
provide instruction and
to customize access
that is appropriate for
Cole personnel to
provide due diligence
material.
	 
	 	 
	Assignment Tracking

	 	CBRE will utilize
JobCenter, a
proprietary web
based assignment
management software.
This software will
allow CBRE to manage
the initial and
quarterly valuations of
the entire portfolio
to ensure timely
delivery and
accurate invoicing.
	 
	 	 
	Report Delivery:

	 	Draft reports will be
delivered to the
Advisor to Cole for
factual review. Upon
confirmation of factual
data, the final reports
will be delivered to
Cole and the REIT’s
fund accountants in PDF
format via posting to
CBRE’s iChannel.
Printed copies will
not be provided,
unless separately
requested. As
mentioned, iChannel
is a secure,
web-based document
management site. The
CBRE VAS Technology
director will work with
Cole to customize
access that is
appropriate for Cole to
provide restricted
delivery of appraisal
reports to the REIT’s
fund accountant.
	 
	 	 
	 

	 	Additionally, CBRE will
provide a master
spreadsheet updated
with the most recent
valuation conclusions
as well as the
assumptions utilized in
the valuation. CBRE
will work with the
REIT’s fund
accountant to
create a
streamlined delivery
process of the property
values.

 

 

			
	 	 	 
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MASTER AGREEMENT

	 	 	 

	Data Security:

	 	CBRE takes multiple
steps to ensure that
client and CBRE data
and technology
resources are
protected against
compromise. Internal
control and IT
governance policies
and procedures are set
at the corporate level
for all divisions
within CBRE and
considered appropriate
for protecting data
and resources.
	 
	 	 
	 

	 	CBRE complies with
USPAP requirements
with respect to issues
of confidentiality,
privacy, and data
security as they
relate to each
appraisal assignment.
	 
	 	 
	Professional Experience:

	 	Reports prepared by
CBRE have been
included or quoted in
a private placement
memorandum,
registration
statement, prospectus,
sales brochure, annual
or quarterly reports,
proxy statements,
Forms 8-K or similar
documents (in either
electronic or hard
format) issued, filed
or released in
connection with a
sale, for firm
securitization, or any
loan involving the
property referenced in
the subject report.
The reports are
prepared in accordance
with the Uniform
Standards of
Professional Appraisal
Practice (USPAP), are
in compliance with the
Financial Institutions
Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) relating
to appraisal standards
as summarized in
Chapter 12, code of
Federal Regulation,
Part 34 (12 CFR 34)
and the Code of
Professional Ethics
and Standards of
Professional Practice
as promulgated by the
Appraisal Foundation
and the Appraisal
Institute.
	 
	 	 
	Appraisal as Basis in
REIT’s NAV Calculation

	 	CBRE understands and
consents to Coles’ use
of the appraised value
and information from
its appraisal reports
in the REIT’s NAV
calculation and daily
share pricing,
provided the REIT
agrees that it has
complied and at all
times will comply, and
will use its best
efforts to cause its
consultants to comply,
with all applicable
Federal and state
securities laws in
connection with the
use of the appraisal
report.
	 
	 	 
	 

	 	Cole can use the
appraised value
without attribution
to the appraisal
report and selected
information in the
appraisal report,
provided Cole agrees
that it has complied,
and at all times will
comply, and will use
Cole’s best efforts to
cause any intended
users to comply, with
all applicable Federal
and state securities
laws in connection
with any offering and
offering document and
any use of the
appraisal report.
	 
	 	 
	Securities Experience:

	 	CBRE understands and
agrees (i) to its
being named as an
“independent valuation
expert”, with regard
to real estate

 

 

			
	 	 	 
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	 	PAGE 8

MASTER AGREEMENT

	 	 	 

	 

	 	valuation and real estate debt
valuation, in the registration
statement and prospectus filed
by Cole under the Securities
Act of 1933, as amended, for
the offering of Cole shares;
and in filings by Cole
with the US Securities
and Exchange Commission,
the Financial Industry
Regulatory Authority
(“FINRA”), and each of the
various states and territories
of the US (collectively, the
“Regulatory Documents”); (ii)
to allow Cole to
reference in the
Regulatory Documents CBRE
appraisals, including
appraisal reports, of assets
and liabilities of Cole; and
(iii) to reliance by Cole on
CBRE’s appraisals (including
appraisal reports, values, and
procedures) of real estate
assets and real estate
liabilities of Cole in
the calculation of the net
asset value of Cole, and the
daily pricing of shares of
Cole. CBRE agrees to provide
its written consent to the
foregoing to the extent
required by Federal and state
securities laws and
regulations and agrees to
allow Cole to file such
consent with the Regulatory
Documents. Cole agrees that
it has complied and at all
times will comply, and will
use its best efforts to cause
its dealer-manager to comply,
with all applicable Federal
and state securities laws in
connection with any use of a
CBRE appraisal report.
	 
	 	 
	VAS Independence:

	 	Valuation & Advisory Services
operates as an independent
economic entity within CBRE.
Although employees of other
CBRE divisions may be
contacted as a part of our
routine market research
investigations, absolute
client confidentiality and
privacy will be maintained at
all times with regard to this
assignment without conflict of
interest.
	 
	 	 
	Compensation:

	 	As compensation for services
rendered by CBRE under this
Master Agreement, Cole shall
pay CBRE in the amounts and
under Terms and Conditions
specified in Addendum A and 

Addendum B.
	 
	 	 
	Term:

	 	This Master Agreement formed
by this Proposal will remain
in effect for three years from
the date of execution.
	 
	 	 
	Extension of Term:

	 	There will be three
successive, three year options
to renew this agreement.
Such options shall be
considered exercised unless
specifically declined in
writing by Cole or CBRE at
least 180 days prior to
expiration.
	 
	 	 
	CBRE Contacts:

	 	CBRE’s single-point and
principal contact for
engagement of appraisal
services and client support
will be provided by Lee

 

 

			
	 	 	 
	CB RICHARD ELLIS   |   MASTER AGREEMENT FOR COLE REAL ESTATE INCOME TRUST, INC.
	 	PAGE 9

MASTER AGREEMENT

	 	 	 	 	 

	 	 	C. Holliday, MAI, and Michael R. Rowland, MAI, MRICS until such time as
CBRE notifies Cole in writing.
	 
	 	 	 	 
	 

	 	Lee C. Holliday, MAI
	 	Michael R. Rowland, MAI, MRICS
	 

	 	Senior Vice President
	 	Senior Managing Director
	 

	 	3280 Peachtree Road
	 	Intermountain Region
	 

	 	Suite 1400
	 	2415 East Camelback Road
	 

	 	Atlanta, GA 30305
	 	Phoenix, AZ 85016
	 

	 	T (404) 812 5030
	 	T 602.735.5508
	 

	 	F (404) 812 5051
	 	F 602.735.5613
	 

	 	E lee.holliday@cbre.com
	 	E michael.rowland@cbre.com
	 
	 	 	 	 
	 	 	For each appraisal, a CBRE professional with the designation of MAI
specializing in the respective property type (e.g. single-tenant
net-leased retail) and knowledgeable of the respective market will be
assigned to provide the “Initial Appraisal” and subsequent “Update
Appraisal”.
	 
	 	 	 	 
	Non-exclusive:	 	CBRE does not have an exclusive agreement with Cole for appraisal
services.
	 
	 	 	 	 
	Termination:	 	This Agreement may be terminated at any time by Cole; provided,
however, Cole shall be obligated to pay CBRE a pro rata share of the
fee for any appraisal as provided in the Terms and Conditions
attached hereto if this Agreement is terminated after CBRE is engaged
to provide an appraisal but before the appraisal is delivered. CBRE
can terminate this Agreement without cause by providing 180
days notice; provided, however, CBRE shall complete any appraisals
which are in process at the time of such termination.
	 
	 	 	 	 
	 	 	In addition, CBRE or Cole may terminate this Agreement for cause by
written notice at any time if the other party defaults in the
performance of any of its material obligations under this Agreement.
Termination as a result of a party’s default shall not relieve such
party of liability for such default and the non-defaulting party shall
have all other remedies available at law or in equity as a result of
such default. In the event of such default, the party declaring the
default shall provide the other party (“Recipient”) with written notice
setting forth the nature of the default, and Recipient shall have ten
(10) days to cure such default; provided, however, that if the nature
of an alleged non-monetary default is such that it cannot reasonably
be cured within ten (10) days, Recipient may cure such default by

 

 

			
	 	 	 
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	 	PAGE 10

MASTER AGREEMENT

	 	 	 

	 

	 	commencing in good faith to
cure such default promptly
after its receipt of such
written notice and prosecuting
the cure of such default to
completion with diligence
and continuing within a
reasonable time thereafter.
If Recipient fails to cure the
default within the foregoing
time periods, the other party
may terminate this
Agreement by written
notice to the Recipient,
which notice shall be
effective upon receipt.
	 
	 	 
	Reputation and Goodwill
	 	 
	 
	 	 
	 

	 	Unless legally obligated to do
so, neither party shall take
any action or make any
statements to past, present or
potential intermediaries,
consultants, broker dealers,
clients, investors, and/or
employees (including internal
and external wholesalers) of
the other party or any
of its affiliates,
professionals, regulatory
agencies or others that might
be injurious to the reputation
or goodwill of such other
party or any of its affiliates
or which in any manner may
interfere with the business
affairs or business relations
of such other party or any of
its affiliates.
	 
	 	 
	Disaster Recovery:

	 	CBRE agrees to (1) submit to
Cole for Cole’s review, and to
implement, a Disaster Recovery
Plan (“DRP”) acceptable to
Cole within thirty (30)
days of the effective
date of this Agreement; (2)
periodically update and test
the operability of the DRP
during every one hundred
eighty (180) day period that
the DRP is fully operational,
(3) certify to Cole at least
once during every one hundred
eighty (180) day period that
the DRP is fully operational
and (4) implement the DRP
upon the occurrence of a
disaster (as such term is
defined in the DRP).
	 
	 	 
	Amendment:

	 	This Master Agreement may not
be amended except by a
writing signed by both
parties.
	 
	 	 
	Assignment:

	 	This Master Agreement shall
not be assigned by any party
without the written consent of
the other party.
	 
	 	 
	Counterparts:

	 	This Agreement may be executed
in several counterparts, each
of which shall be an original,
but all of which together will
constitute one and the
same instrument. Any
electronic signature shall be
deemed an original for the
purposes of this Agreement.
	 
	 	 
	Entire Agreement:

	 	This Agreement, including the
Terms and Conditions attached
hereto, embodies the entire
agreement and
understanding between the
parties and supersedes all
prior agreements and

 

 

			
	 	 	 
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	 	PAGE 11

MASTER AGREEMENT

	 	 	 

	 

	 	understandings
relating to the
subject matter hereof,
provided that the
parties may embody
in one or more
separate documents
their agreement, if
any, with respect to
delegated duties.
	 
	 	 
	Survivability:

	 	The parties’
obligation under
paragraphs 7, 10, 14,
15 and 16 of the Terms
and Conditions
attached hereto will
survive termination of
this Agreement.
	 
	 	 
	Severability:

	 	Whenever
possible, each
provision of this
Agreement shall be
interpreted in such
manner as to be
effective and valid
under applicable
law. In the
event that any
provision of this
Agreement is held
under applicable law
to be invalid,
illegal, or
unenforceable in
any respect, such
provision will be
ineffective only to
the extent of such
invalidity, and the
validity, legality and
enforceability of the
remaining provisions
of this Agreement will
not be affected or
impaired in any
way.

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