Document:

EX-10.3

PROMISSORY NOTE

$7,300,000.00 March 25, 2008

1. Agreement to Pay. FOR VALUE RECEIVED, G&E HEALTHCARE REIT CYPRESS STATION, LLC, a
Delaware limited liability company (“Borrower”) hereby promises to pay to the order of NATIONAL
CITY BANK, a national banking association, its successors and assigns, whose address is 120 S.
Central, 9th Floor, Clayton, Missouri 63105 (“Lender”), the principal sum of Seven Million Three
Hundred Thousand and 00/100 Dollars ($7,300,000.00) (“Loan”), at the place and in the manner
hereinafter provided, together with interest thereon at the rate or rates described below, and any
and all other amounts which may be due and payable hereunder from time to time.

2. Interest Rate.

2.1 Interest Prior to Default.

(a) Interest shall accrue on the outstanding principal balance of this Note
from the date hereof through September 1, 2011, (“Maturity Date”) at the lesser of:
(i) the Maximum Lawful Rate; or (ii) a fluctuating rate of interest equal to the
Libor Rate plus 1.75% per annum (“Applicable Margin”) (the Libor Rate plus the
Applicable Margin shall be referred to herein as the “Loan Rate”).

(b) LIBOR Flex Rate. Designation of a LIBOR Rate is subject to the following
requirements:

(i) The LIBOR Rate shall fluctuate daily in accordance with changes to
the LIBOR Rate.

(ii) “LIBOR Rate” means the interest rate determined by the following
formula, rounded upward to the nearest 1/100 of one percent (all amounts in
the calculation will be determined by Lender as of the first day of the
interest period):

	 	 	 
	LIBOR =

	 	London Inter-Bank Offered Rate
	
 
	 	 
	
 
	 	(1.00 – Reserve Percentage)

Where,

(1) “London Inter-Bank Offered Rate” initially means the rate
per annum based on a 360-day year equal to the offered rate for
deposits in U.S. dollars for a one-month period and for amounts
comparable to the then-outstanding principal balance of this Loan are
offered in the London Interbank Eurodollar market at 11:00 a.m.
(London time) two Business Days prior to the day as to which the rate
applies (or three Business Days prior to the day as to which the rate
applies if banks in London, England were not open and dealing in
offshore United States dollars on such second preceding Business
Day), as such interest rate is referenced and reported by the British
Bankers Association in the Bridge Financial Telerate system “Page
3750” report (or if not so published, Lender, in its sole discretion,
shall designate another daily financial or governmental publication
of national circulation to determine such rate).

(2) “Reserve Percentage” means the total of the maximum reserve
percentages for determining the reserves to be maintained by member
banks of the Federal Reserve System for Eurocurrency Liabilities, as
defined in Federal Reserve Board Regulation D, rounded upward to the
nearest 1/100 of one percent. The percentage will be expressed as a
decimal, and will include, but not be limited to, marginal,
emergency, supplemental, special, and other reserve percentages.

(iii) Lender is not obligated to accept a deposit in the inter-bank
market in order to charge interest at the LIBOR Rate.

(iv) In addition, Borrower shall be responsible for paying any costs
(“Additional Costs”) actually incurred by Lender as a direct result of any
change in Lender’s cost of complying with any law, rule, regulation or other
requirement imposed, interpreted or enforced by any federal, state or other
governmental or monetary authority which is applicable to assets held by or
deposits or accounts with or credits extended by Lender and which causes
Lender to incur costs or increases the effective cost to Lender of lending
to Borrower at the LIBOR Rate.

2.2 Late Charges. If payment (other than the final payment of all principal and
interest due hereunder on the Maturity Date as more specifically set forth in Section 3.2 herein
below) is ten (10) days or more late, Borrower will be charged a late payment fee of five percent
(5%) of the unpaid portion of the regularly scheduled payment. Borrower will pay a fee to Lender
of Fifteen Dollars ($15.00) if Borrower makes a payment on this Note and the check or preauthorized
charge with which Borrower pays is later dishonored.

2.3 Interest After Default. Interest at a rate equal to the lesser of (i) the Maximum
Lawful Rate, or (ii) five percent (5%) over Lender’s Corporate Market Rate (defined below), as
published by Lender from time to time, (hereinafter referred to as the “Default Rate”) shall be
payable on the entire principal balance owing from and after the Maturity Date or following the
occurrence and during the continuance of any Event of Default, whether upon failure to pay this
Note, upon acceleration, upon final maturity or otherwise. For purposes of this Note, “Corporate
Market Rate” shall mean the floating per annum rate of interest that at any time, and from time to
time, shall be most recently announced by Lender as its corporate rate, which is not intended to be
the Lender’s lowest or most favorable rate of interest at any one time. Each change in Default
Rate, if any, shall take effect on the effective date of any change in the Corporate Market Rate.
The Lender shall not be obligated to give notice of any change in the Corporate Market Rate.
Following the occurrence and during the continuance of an Event of Default, at its option Lender
may add any unpaid accrued interest, costs and fees to principal and such sum will bear interest at
the Default Rate, but in no event at an effective interest rate on this Note which exceeds the
Maximum Lawful Rate. In addition, Lender shall have the right, without acceleration of the
indebtedness, to collect interest at the Default Rate on any payment due hereunder (including
without limitation late charges and fees for legal counsel) which is not received by Lender on or
before the date on which such payment originally was due. Interest at the Default Rate shall be
immediately due and payable from the due date specified herein and shall accrue until all Events of
Default have been fully cured or full payment is received, as applicable; provided that no Default
Rate interest shall be due on any sum paid within the grace period applicable thereto, if any.

2.4 Interest Calculation.

(a) Maximum Lawful Interest. The term “Maximum Lawful Rate” means the
maximum rate of interest, and the term “Maximum Lawful Amount” means the maximum
amount of interest, that are permissible under applicable state or federal law for
the type of loan evidenced by this Note and the other Loan Documents. If Chapter
303 of the Texas Finance Code is applicable to this Note, and applicable state or
federal law does not permit a higher interest rate, the “weekly ceiling” (as defined
as Chapter 303 of the Texas Finance Code) shall be the interest rate ceiling
applicable to this Note and shall be the basis for determining the Maximum Lawful
Rate in effect from time to time during the term of this Note. If applicable state
or federal law allows a higher interest rate or federal law preempts the state law
limiting the rate of interest, then the foregoing interest rate ceiling shall not be
applicable to this Note. If the Maximum Lawful Rate is increased by statute or
other governmental action subsequent to the date of this Note, then the new Maximum
Lawful Rate shall be applicable to this Note from the effective date thereof, unless
otherwise prohibited by applicable law.

(b) Spreading of Interest. Because of the possibility of irregular
periodic balances of principal, premature payment, and the fluctuating nature of the
Loan Rate, the total interest that will accrue under this Note cannot be determined
in advance. Lender does not intend to contract for, charge, or receive more than
the Maximum Lawful Rate or Maximum Lawful Amount permitted by applicable state or
federal law, and to prevent such an occurrence Lender and Borrower agree that all
amounts of interest, whenever contracted for, charged, or received by Lender, with
respect to the loan of money evidenced by this Note, shall be spread, prorated, or
allocated over the full period of time this Note is unpaid, including the period of
any renewal or extension of this Note. If demand for payment of this Note is made
by Lender prior to the full stated term, the total amount of interest contracted
for, charged, or received to the time of such demand shall be spread, prorated, or
allocated along with any interest thereafter accruing over the full period of time
that this Note thereafter remains unpaid for the purpose of determining if such
interest exceeds the Maximum Lawful Amount.

(c) Excess Interest. At maturity (whether by acceleration or
otherwise) or on earlier final payment of this Note, Lender shall compute the total
amount of interest that has been contracted for, charged, or received by Lender or
payable by Borrower under this Note and compare such amount to the Maximum Lawful
Amount that could have been contracted for, charged, or received by Lender. If such
computation reflects that the total amount of interest that has been contracted for,
charged, or received by Lender or payable by Borrower exceeds the Maximum Lawful
Amount, then Lender shall apply such excess to the reduction of the principal
balance and not to the payment of interest; or if such excess interest exceeds the
unpaid principal balance, such excess shall be refunded to Borrower. This provision
concerning the crediting or refund or excess interest shall control and take
precedence over all other agreements between Borrower and Lender so that under no
circumstances shall the total interest contracted for, charged, or received by
Lender exceed the Maximum Lawful Amount.

(d) Daily Computation of Interest. To the extent permitted by
applicable law, interest on this Note shall be calculated on the basis of a 360-day
year and the actual number of days elapsed in any portion of a month in which
interest is due. In no event shall Lender compute the interest in a manner that
would cause Lender to contract for, charge, or receive interest that would exceed
the Maximum Lawful Rate or the Maximum Lawful Amount.

3. Payment Terms.

3.1 Periodic Principal and Interest Payments. Borrower shall pay this Note in monthly
payments of principal in the amounts set forth on the Schedule of Principal Payments attached
hereto as Schedule 3.1 plus monthly payments equaling from time to time the then accrued
interest on the unpaid principal balance. Borrower’s first principal and interest payment is due
May 1, 2008, and all subsequent payments are due on the same day of each month thereafter through
and including the Maturity Date. Borrower will pay Lender at Lender’s address shown above or at
such other place as Lender may designate in writing. If any payment due on this Note or if any
payment to be debited from Borrower’s designated account on a scheduled due date is payable and
scheduled on a weekend or legal bank holiday in the State of Missouri, the payment will be due and
will be debited on the next non-weekend/holiday business day, the amount of payment, in such case,
to include all interest accrued to the date of such actual payment, and such payment shall be
deemed to have been made on a timely basis. No principal amount repaid may be reborrowed. All
amounts due under this Note shall be payable without set-off, counterclaim or any other deduction
whatsoever.

3.2 Payment on Maturity Date. Notwithstanding the monthly principal payment amounts
set forth on Schedule 3.1, the entire unpaid principal balance of this Note, if not sooner paid or
declared to be due in accordance with the terms hereof, together with all accrued and unpaid
interest thereon and any other amounts due and payable hereunder or under any other Loan Document
(as hereinafter defined), shall be due and payable in full on the Maturity Date, subject to the
Extension Options set forth below.

3.3 Application of Payments. Unless an Event of Default shall have occurred and be
continuing, all payments and prepayments on account of the indebtedness evidenced by this Note
shall be applied as follows: (a) first, to fees, expenses, costs and other similar amounts then due
and payable to Lender, if any, including, without limitation late charges due hereunder,
(b) second, to accrued and unpaid interest on the principal balance of this Note; (c) third, to
the payment of principal, if any, due in the month in which the payment or prepayment is made,
(d) fourth, to any escrows, impounds or other amounts which may then be due and payable under the
Loan Documents (as hereinafter defined), (e) fifth, to any other amounts then due Lender hereunder
or under any of the Loan Documents, and (f) last, to the unpaid principal balance of this Note in
the inverse order of maturity. Any prepayment on account of the indebtedness evidenced by this
Note shall not extend or postpone the due date or reduce the amount of any subsequent monthly
payment of principal and interest due hereunder. Following the occurrence and during the
continuance of an Event of Default, payments may be applied by Lender to amounts owed hereunder and
under the Loan Documents in such order as Lender shall determine, in its sole discretion.

3.4 Method of Payments. All payments of principal and interest hereunder shall be
paid by automatic debit, wire transfer, check or in coin or currency which, at the time or times of
payment, is the legal tender for public and private debts in the United States of America and shall
be made at such place as Lender or the legal holder or holders of this Note may from time to time
appoint in the payment invoice or otherwise in writing. Payment made by check shall be deemed paid
on the date Lender receives such check; provided, however, that if such check is subsequently
returned to Lender unpaid due to insufficient funds or otherwise, the payment shall not be deemed
to have been made and shall continue to bear interest until collected. Notwithstanding the
foregoing, the final payment due under this Note must be made by wire transfer or other final
funds. If requested by Borrower, Interest, principal payments and any fees and expenses owed
Lender from time to time will be deducted by Lender automatically on the due date from Borrower’s
account with Lender, as designated in writing by Borrower. Borrower will maintain sufficient funds
in the account on the dates Lender enters debits authorized by this Note. If there are
insufficient funds in the account on the date Lender enters any debit authorized by this Note, the
debit will be reversed. Borrower may terminate this direct debt arrangement at any time by sending
written notice to Lender at the address specified above.

3.5 Prepayment. This Note may be prepaid, either in whole or in part, without penalty
or premium, at any time and from time to time upon ten (10) days prior notice to Lender.

4. Extension of Maturity Date. Borrower has two options to extend the Maturity Date,
each of which is for a one-year period (“Extension Options”) upon the same terms and conditions and
subject to the same Loan Rate as set forth herein, provided that Borrower’s right to exercise each
Extension Option shall be exercisable upon satisfaction of and subject to the following terms and
conditions: (1) No Event of Default shall have occurred and be continuing at the time of the
exercise of any Extension Option; (2) Borrower must deliver written notice of Borrower’s election
to exercise an Extension Option within the 90-day period preceding the 30th day prior to
the then applicable Maturity Date; (3) Borrower must pay Lender an extension fee equal to fifteen
one-hundredths of the outstanding principal balance of the Loan at the time that Borrower exercises
an Extension Option; (4) Borrower may not exercise its second Extension Option hereunder unless
Borrower exercised its first Extension Option hereunder; (5) in the event of the exercise of the
first Extension Option, then commencing on October 1, 2011 and continuing on the first day of each
calendar month through August 1, 2012, monthly payments of principal shall be due (in addition to
monthly interest payments as set forth herein) in an amount set forth on the schedule attached
hereto as Schedule 3.1, the principal payment due for September 1, 2011 shall be as set
forth on Schedule 3.1 and the Maturity Date shall be September 1, 2012; and (6) in the event of the
exercise of the second Extension Option, then commencing October 1, 2012 and continuing on the
first day of each calendar month through August 1, 2013, monthly payments of principal shall be due
(in addition to monthly interest payments as set forth herein) in an amount set forth on the
schedule attached hereto as Schedule 3.1, the principal payment due for September 1, 2012
shall be as set forth on Schedule 3.1, and the Maturity Date shall be September 1, 2013.

5. Security. This Note is secured by a Deed of Trust, Security Agreement, Assignment
of Leases and Rents and Fixture Filing (“Deed of Trust”) of even date herewith made by Borrower to
Lender creating a first mortgage lien on certain real property (“Premises”) legally described in
Exhibit A attached to the Deed of Trust, an Assignment of Rents and Leases (“Assignment”) of even
date herewith from Borrower to Lender, a Limited Guaranty of Payment of even date herewith from
Grubb & Ellis Healthcare REIT, Inc. (“Guaranty”) (hereinafter the entity executing the Guaranty is
referred to as “Guarantor”) to Lender and an Environmental Indemnity Agreement (“Indemnity
Agreement”) of even date herewith from Borrower and Guarantor to Lender, (the Note, the Deed of
Trust, the Assignment, the Guaranty, the Indemnity Agreement and any other document now or
hereafter given to evidence or secure payment of this Note or delivered to induce Lender to
disburse the proceeds of the Loan, and including any agreement, device or arrangement designed to
protect Borrower from fluctuations of interest rates, exchange rates, or forward rates, including
but not limited to dollar-denominated or cross-currency exchange agreements, foreign currency
exchange agreements, interest rate caps, collars or floors, forward rate currency or interest rate
options, puts, warrants, swaps, swaptions, U.S. Treasury locks and U.S. Treasury options, all as
such documents may hereafter be amended, restated or replaced from time to time, are hereinafter
collectively referred to as the “Loan Documents”). Reference is hereby made to the Loan Documents
(which are incorporated herein by reference as fully and with the same effect as if set forth
herein at length) for a statement of the covenants and agreements contained therein, a statement of
the rights, remedies, and security afforded thereby, and all matters therein contained.

6. Events of Default. The occurrence of any one or more of the following events shall
constitute an “Event of Default” under this Note:

6.1 the failure by Borrower to pay (i) any installment of principal or interest payable
pursuant to this Note within ten (10) days after the date when due, or (ii) any other amount
payable to Lender under this Note, the Deed of Trust or any of the other Loan Documents within
twenty (20) days after the date when any such payment is due in accordance with the terms hereof or
thereof; or

6.2 the occurrence of any “Event of Default” under any Loan Documents.

7. Remedies. At the election of the holder hereof, and without notice, the principal
balance remaining unpaid under this Note, and all unpaid interest accrued thereon and any other
amounts due hereunder, shall be and become immediately due and payable in full upon the occurrence
of any Event of Default until such Event of Default shall be cured or waived. Failure to exercise
this option shall not constitute a waiver of the right to exercise same in the event of any
subsequent Event of Default. No holder hereof shall, by any act of omission or commission, be
deemed to waive any of its rights, remedies or powers hereunder or otherwise unless such waiver is
in writing and signed by the holder hereof, and then only to the extent specifically set forth
therein. The rights, remedies and powers of the holder hereof, as provided in this Note, the Deed
of Trust and in all of the other Loan Documents are cumulative and concurrent, and may be pursued
singly, successively or together against Borrower, the Guarantors hereof, the Premises and any
other security given at any time to secure the repayment hereof, all at the sole discretion of the
holder hereof. If any suit or action is instituted or attorneys are employed to collect this Note
or any part hereof, Borrower promises and agrees to pay all costs of collection, including
reasonable attorneys’ fees and court costs.

8. Covenants and Waivers. Borrower and all others who now or may at any time become
liable for all or any part of the obligations evidenced hereby, expressly agree hereby to be
jointly and severally bound, and, to the extent permitted by law, do jointly and severally:
(i) waive and renounce any and all homestead, redemption and exemption rights and the benefit of
all valuation and appraisement privileges against the indebtedness evidenced by this Note or by any
extension or renewal hereof; (ii) waive presentment and demand for payment, notices of nonpayment
and of dishonor, notice of default, notice of intent to accelerate maturity, notice of acceleration
of maturity, protest of dishonor, and notice of protest; (iii) except as expressly provided in the
Loan Documents, waive any and all notices in connection with the delivery and acceptance hereof and
all other notices in connection with the performance, default, or enforcement of the payment hereof
or hereunder; (iv) waive any and all lack of diligence and delays in the enforcement of the payment
hereof; (v) agree that the liability of each Borrower, guarantor, endorser or obligor shall be
unconditional and without regard to the liability of any other person or entity for the payment
hereof, and shall not in any manner be affected by any indulgence or forbearance granted or
consented to by Lender to any of them with respect hereto; (vi) consent to any and all extensions
of time, renewals, waivers, or modifications that may be granted by Lender with respect to the
payment or other provisions hereof, and to the release of any security at any time given for the
payment hereof, or any part thereof, with or without substitution, and to the release of any person
or entity liable for the payment hereof; and (vii) consent to the addition of any and all other
makers, endorsers, guarantors, and other obligors for the payment hereof, and to the acceptance of
any and all other security for the payment hereof, and agree that the addition of any such makers,
endorsers, guarantors or other obligors, or security shall not affect the liability of Borrower,
any guarantor and all others now liable for all or any part of the obligations evidenced hereby.
This provision is a material inducement for Lender making the Loan to Borrower.

9. Other General Agreements.

9.1 Business Purpose Loan. Borrower agrees that the Loan evidenced by this Note is an
exempted transaction under the Truth In Lending Act, 15 U.S.C., Section 1601, et seq. Without
limiting the generality of the foregoing, Borrower warrants and represents to Lender that (i) the
proceeds of this Note will be used solely for business or commercial purposes, and in no way will
the proceeds be used for personal, family, or household purposes; and (ii) the property covered by
the Deed of Trust securing this Note is not the business or residential homestead of Borrower or
any other person, and Borrower has no present intent to occupy in the future or use or claim in the
future such property either as business or residential homestead.

9.2 Time. Time is of the essence hereof.

9.3 Governing Law. This Note is governed and controlled as to validity, enforcement,
interpretation, construction, effect and in all other respects by the statutes, laws and decisions
of the State of Texas. This Note may not be changed or amended orally but only by an instrument in
writing signed by the party against whom enforcement of the change or amendment is sought.

9.4 No Joint Venture. Lender shall not be construed for any purpose to be a partner,
joint venturer, agent or associate of Borrower or of any lessee, operator, concessionaire or
licensee of Borrower in the conduct of its business, and by the execution of this Note, Borrower
agrees to indemnify, defend, and hold Lender harmless from and against any and all damages, costs,
expenses and liability that may be incurred by Lender as a result of a claim that Lender is such
partner, joint venturer, agent or associate.

9.5 Joint and Several Obligations. If this Note is executed by more than one party,
the obligations and liabilities of each Borrower under this Note shall be joint and several and
shall be binding upon and enforceable against each Borrower and their respective successors and
assigns. This Note shall inure to the benefit of and may be enforced by Lender and its successors
and assigns.

9.6 Severable Loan Provisions. If any provision of this Note is deemed to be invalid
by reason of the operation of law, or by reason of the interpretation placed thereon by any
administrative agency or any court, Borrower and Lender shall negotiate an equitable adjustment in
the provisions of the same in order to effect, to the maximum extent permitted by law, the purpose
of this and the validity and enforceability of the remaining provisions, or portions or
applications thereof, shall not be affected thereby and shall remain in full force and effect.

9.7 Chapter 346 Not Applicable. Borrower agrees that Chapter 346 of the Texas Finance
Code, relating to certain revolving credit loan accounts and tri-party accounts, is not applicable
to this Note.

9.8 Assignability. Lender may at any time assign its rights in this Note and the Loan
Documents, or any part thereof and transfer its rights in any or all of the collateral to another
bank or financial institution, and Lender thereafter shall be relieved from all liability with
respect to such collateral accruing from and after such assignment or transfer. In addition,
Lender may at any time sell one or more participations in the Note. Borrower may not assign its
interest in this Note, or any other agreement with Lender or any portion thereof, either
voluntarily or by operation of law, without the prior written consent of Lender.

10. Notices. All notices required under this Note will be in writing and will be
transmitted in the manner and to the addresses or facsimile numbers required by the Loan Agreement,
or to such other addresses or facsimile numbers as Lender and Borrower may specify from time to
time in writing.

11. CONSENT TO JURISDICTION. SUBJECT ONLY TO THE EXCEPTION IN THE NEXT SENTENCE,
BORROWER AND LENDER HEREBY AGREE TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL COURTS OF THE
SOUTHERN DISTRICT OF TEXAS AND THE STATE COURTS OF TEXAS LOCATED IN HARRIS COUNTY, TEXAS AND WAIVE
ANY OBJECTION BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT TO ANY ACTION INSTITUTED THEREIN,
AND AGREE THAT ANY DISPUTE CONCERNING THE RELATIONSHIP BETWEEN LENDER AND BORROWER OR THE CONDUCT
OF ANY OF THEM IN CONNECTION WITH THIS NOTE OR OTHERWISE SHALL BE HEARD ONLY IN THE COURTS
DESCRIBED ABOVE. NOTWITHSTANDING THE FOREGOING: (1) LENDER SHALL HAVE THE RIGHT TO BRING ANY ACTION
OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN ANY COURTS OF ANY OTHER JURISDICTION LENDER DEEMS
NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL, OR OTHER SECURITY FOR THE LOAN
OBLIGATIONS, AND (2) BORROWER ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE
IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS.

12. WAIVER OF JURY TRIAL. BORROWER AND LENDER (BY ACCEPTANCE OF THIS NOTE), HAVING
BEEN REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (a) UNDER THIS NOTE OR ANY RELATED
AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
FUTURE BE DELIVERED IN CONNECTION WITH THIS NOTE OR (b) ARISING FROM ANY BANKING RELATIONSHIP
EXISTING IN CONNECTION WITH THIS NOTE, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED
BEFORE A COURT AND NOT BEFORE A JURY.

13. Customer Identification — USA Patriot Act Notice; OFAC and Bank Secrecy
Act. The Lender hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and the
Lender’s policies and practices, the Lender is required to obtain, verify and record certain
information and documentation that identifies the Borrower, which information includes the name and
address of the Borrower and such other information that will allow the Lender to identify the
Borrower in accordance with the Act. In addition, the Borrower shall (a) ensure that no person who
owns a controlling interest in or otherwise controls the Borrower or any subsidiary of the Borrower
is or shall be listed on the Specially Designated Nationals and Blocked Person List or other
similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the
Treasury or included in any Executive Orders, (b) not use or permit the use of the proceeds of the
Loan to violate any of the foreign asset control regulations of OFAC or any enabling statute or
Executive Order relating thereto, and (c) comply, and cause any of its subsidiaries to comply, with
all applicable Bank Secrecy Act (“BSA”) laws and regulations, as amended.

14. Expenses and Indemnification. The Borrower shall pay all costs and expenses
reasonably incurred by the Lender in connection with the preparation of this Note and the Loan
Documents, including, without limitation, reasonable attorneys’ fees and time charges of attorneys
who may be employees of the Lender or any affiliate or parent corporation of the Lender. The
Borrower shall pay any and all stamp and other taxes, UCC search fees, filing fees and other costs
and expenses reasonably incurred in connection with the execution and delivery of this Note and the
other instruments and documents to be delivered hereunder, and agrees to save the Lender harmless
from and against any and all liabilities with respect to or resulting from any delay in paying or
omission to pay such costs and expenses. The Borrower hereby authorizes the Bank to charge any
account of the Borrower with the Bank for all sums due under this section. The Borrower also
agrees to defend (with counsel satisfactory to the Lender), protect, indemnify and hold harmless
the Lender, any parent corporation, affiliated corporation or subsidiary of the Lender, and each of
their respective officers, directors, employees, attorneys and agents (each, an “Indemnified
Party”) from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and distributions of any kind or nature
(including, without limitation, the disbursements and the reasonable fees of counsel for each
Indemnified Party thereto, which shall also include, without limitation, reasonable attorneys’ fees
and time charges of attorneys who may be employees of the Lender or any parent or affiliated
corporation of the Lender, but excluding punitive damages or other exemplary damages, diminution in
value, lost profits or lost opportunity costs), which may be imposed on, incurred by, or asserted
against, any Indemnified Party (whether direct, indirect or consequential and whether based on any
federal, state or local laws or regulations, including, without limitation, securities,
environmental laws and commercial laws and regulations, under common law or in equity, or based on
contract or otherwise) in any manner relating to or arising out of this Note or any of the Loan
Documents, or any act, event or transaction related or attendant thereto, the preparation,
execution and delivery of this Note and the Loan Documents, the making or issuance and management
of the Loan, the use or intended use of the proceeds of the Loan and the enforcement of the
Lender’s rights and remedies under this Note, the Loan Documents, any other instruments and
documents delivered hereunder or thereunder, or under any other agreement between the Borrower and
the Lender; provided, however, that the Borrower shall not have any obligation hereunder to any
Indemnified Party with respect to matters caused by or resulting from the willful misconduct, gross
negligence, bad faith or illegal acts of such Indemnified Party. To the extent that the
undertaking to indemnify set forth in the preceding sentence may be unenforceable because it
violates any law or public policy, the Borrower shall satisfy such undertaking to the maximum
extent permitted by applicable law. Any liability, obligation, loss, damage, penalty, cost or
expense covered by this indemnity shall be paid to such Indemnified Party on demand, and failing
prompt payment, together with interest thereon at the Default Rate from the date incurred by such
Indemnified Party until paid by the Borrower, shall be added to the obligations of the Borrower
evidenced by this Note and secured by the collateral securing this Note. This indemnity is not
intended to excuse the Lender from performing hereunder. The provisions of this section shall
survive the closing of the Loan, the satisfaction and payment of this Note and any cancellation of
the Loan Documents. The Borrower shall also pay, and hold the Lender harmless from, any and all
claims of any brokers, finders or agents claiming a right to any fees in connection with arranging
the Loan. The Lender hereby represents that it has not employed a broker or other finder in
connection with the Loan. The Borrower represents and warrants that no brokerage commissions or
finder’s fees are to be paid in connection with the Loan.

15. NOTICE OF FINAL AGREEMENT. THIS WRITTEN NOTE AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

[Signature on Following Page]

1

IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the day and year first
written above.

BORROWER:

	 	 	G&E HEALTHCARE REIT CYPRESS STATION, LLC, a

	 	 	Delaware limited liability company

By: /s/ Shannon K S Johnson

Print Name: Shannon K S Johnson

Its: Authorized Signatory

	 	 	 	 	 
	STATE OF CALIFORNIA
	 	 	)	 
	 
	 	)  SS
	COUNTY OF ORANGE
	 	 	)	 

On March 20, 2008, before me, P.C. Han, Notary Public, personally appeared Shannon K S Johnson
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is subscribed
to the within instrument and acknowledged to me that she executed the same in her authorized
capacity(ies), and that by her signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature /s/ Phil C. Han

This area for official notarial seal.

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

2

SCHEDULE 3.1

Schedule of Principal Payments

	 	 	 	 	 
	Months
	 	Principal Payment Amount
	 
	 	 	 	 
	One through Forty-One
	 	$	8,044.00	 
	(May 1, 2008 through September 1, 2011)
	 	 	 	 
	First Extension Option Period
	 	$	9,165.00	 
	(October 1, 2011 through September 1, 2012)
	 	 	 	 
	Second Extension Option Period
	 	$	9,731.00	 

(October 1, 2012 through September 1, 2013)

3EX-10.4

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY
OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY
BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OF YOUR DRIVER’S
LICENSE NUMBER.

DEED OF TRUST, SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND RENTS AND FINANCING STATEMENT

THIS DOCUMENT SERVES AS A FIXTURE FILING UNDER SECTION 9.502 OF THE TEXAS BUSINESS AND COMMERCE

CODE

BORROWER’S ORGANIZATIONAL IDENTIFICATION NUMBER:

___________4511371___________

THIS DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FILING
(“Deed of Trust”) is made as of the 25th day of March, 2008, by G&E HEALTHCARE REIT
CYPRESS STATION, LLC, a Delaware limited liability company, whose address is 1551 N. Tustin Avenue,
Suite 200, Santa Ana, California 92705 (“Borrower”) (for recording and indexing purposes,
“Grantor”), to Jeffrey C. Baker whose address is 5847 San Felipe, #1753, Houston, Texas 77057,
(herein called “Trustee”), for the benefit of NATIONAL CITY BANK, a national banking
association, its successors and assigns whose address is 120 S. Central, 9th Floor, Clayton,
Missouri 63105 (“Lender”) (for recording and indexing purposes “Grantee”):

RECITALS:

(A) Lender has agreed to loan to Borrower the principal amount of Seven Million Three Hundred
Thousand and 00/100 Dollars ($7,300,000.00) (“Loan”), evidenced by a certain Promissory
Note of even date herewith made by Borrower payable to Lender in the principal amount of the Loan
and due on September 1, 2011 (subject to extension as defined in the Note) (hereinafter as amended,
restated or replaced from time to time, the “Note”), except as may be accelerated pursuant
to the terms hereof or of the Note, or any Loan Documents (as such term is defined in the Note and
incorporated herein).

(B) A condition precedent to Lender’s extension of the Loan to Borrower is the execution and
delivery by Borrower of this Deed of Trust.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Borrower agrees as follows:

Borrower does hereby irrevocably GRANT, BARGAIN, SELL, ASSIGN AND CONVEY unto Trustee, its
successors and assigns, IN TRUST FOREVER FOR THE SOLE BENEFIT OF LENDER, WITH POWER OF SALE, all of
the Borrower’s right, title and interest in and to the following described property, rights and
interests (referred to collectively herein as

1

“Property”), all of which property, rights and interests are hereby pledged primarily
and on a parity with the Real Estate (as defined below) and not secondarily:

THE REAL ESTATE located in the State of Texas and legally described on Exhibit A attached
hereto and made a part hereof (“Real Estate”);

TOGETHER WITH all improvements of every nature whatsoever now or hereafter situated on the
Real Estate, and all fixtures and personal property of every nature whatsoever now or hereafter
owned by Borrower and on, or used in connection with the Real Estate or the improvements thereon,
or in connection with any construction thereon, including all extensions, additions, improvements,
betterments, renewals, substitutions and replacements to any of the foregoing and all of the right,
title and interest of Borrower in and to any such personal property or fixtures together with the
benefit of any deposits or payments now or hereafter made on such personal property or fixtures by
Borrower or on its behalf (“Improvements”);

TOGETHER WITH all easements, rights of way, gores of real estate, streets, ways, alleys,
passages, sewer rights, sewer systems, waters, water courses, water rights and powers, and all
estates, rights, titles, interests, privileges, liberties, tenements, hereditaments and
appurtenances whatsoever, in any way now or hereafter belonging, relating or appertaining to the
Real Estate, and the reversions, remainders, rents, issues, future tap fees, and profits thereof,
and all the estate, right, title, interest, property, possession, claim and demand whatsoever, at
law as well as in equity, of Borrower of, in and to the same;

TOGETHER WITH all rents, revenues, issues, profits, proceeds, income, royalties, “accounts,”
including “health-care-insurance receivables,” escrows, letter-of-credit rights (each as defined in
the Code hereinafter defined), security deposits, deposits, impounds, reserves, tax refunds and
other rights to monies from the Property and/or the businesses and operations conducted by Borrower
thereon, to be applied against the Indebtedness (hereinafter defined); provided, however, that
Borrower, so long as no Event of Default (as hereinafter defined) has occurred and is continuing
hereunder, may collect rent as it becomes due, but not more than one (1) month in advance thereof;

TOGETHER WITH all interest of Borrower in all leases now or hereafter on the Property, whether
written or oral (“Leases”), together with all security therefor and all monies payable
thereunder, subject, however, to the conditional permission hereinabove given to Borrower to
collect the rentals under any such Lease;

TOGETHER WITH all interest of Borrower in property management agreements, construction
contracts, architect and engineer contracts, now owned or hereafter acquired, arising out of or in
connection with the Property;

TOGETHER WITH all fixtures and articles of personal property now or hereafter owned by
Borrower and forming a part of or used in connection with the Real Estate or the Improvements,
including, but without limitation, any and all air conditioners, antennae, appliances, apparatus,
awnings, basins, bathtubs, bidets, boilers, bookcases, cabinets, carpets, coolers, curtains,
dehumidifiers, disposals, doors, drapes, dryers, ducts, dynamos, elevators, engines, equipment,
escalators, exercise equipment, fans, fittings, floor coverings, furnaces, furnishings, furniture,
garages, hardware, heaters, humidifiers, incinerators, lighting, machinery, motors, ovens, pipes,
plumbing, pumps, radiators, ranges, recreational facilities, refrigerators, screens, security
systems, shades, shelving, sinks, sprinklers, stokers, storage units, stoves, toilets, ventilators,
wall coverings, washers, windows, window coverings, wiring, and all renewals or replacements
thereof or articles in substitution therefor, whether or not the same are or shall be attached to
the Real Estate or the Improvements in any manner; it being mutually agreed that all of the
aforesaid property owned by Borrower and placed on the Real Estate or the Improvements, so far as
permitted by law, shall be deemed to be fixtures, a part of the realty, and security for the
Indebtedness (as hereinafter defined); notwithstanding the agreement hereinabove expressed that
certain articles of property form a part of the realty covered by this Deed of Trust and be
appropriated to its use and deemed to be realty, to the extent that such agreement and declaration
may not be effective and that any of said articles may constitute goods (as said term is used in
the Uniform Commercial Code of the State of Texas in effect from time to time (“Code”)),
this instrument shall constitute a security agreement, creating a security interest in such goods,
as collateral, in Lender, as a secured party, and Borrower, as Debtor, all in accordance with the
Code; and

TOGETHER WITH all of Borrower’s interests in “general intangibles” including “payment
intangibles” and “software” (each as defined in the Code) now owned or hereafter acquired and
related to the Property, including, without limitation, all of Borrower’s right, title and interest
in and to: (i) all agreements, licenses, permits and contracts to which Borrower is or may become a
party and which relate to the Property; (ii) all obligations and indebtedness owed to Borrower
thereunder; (iii) all intellectual property related to the Property; and (iv) all choses in action
and causes of action relating to the Property;

TOGETHER WITH all of Borrower’s accounts now owned or hereafter created or acquired as relate
to the Property, including, without limitation, all of the following now owned or hereafter created
or acquired by Borrower: (i) accounts, contract rights, health-care-insurance receivables, book
debts, Note, drafts, and other obligations or indebtedness owing to the Borrower arising from the
sale, lease or exchange of goods or other property and/or the performance of services; (ii) the
Borrower’s rights in, to and under all purchase orders for goods, services or other property;
(iii) the Borrower’s rights to any goods, services or other property represented by any of the
foregoing; (iv) monies due to become due to the Borrower under all contracts for the sale, lease
or exchange of goods or other property and/or the performance of services including the right to
payment of any interest or finance charges in respect thereto (whether or not yet earned by
performance on the part of the Borrower); (v) ”securities”, “investment property,” “financial
assets,” and “securities entitlements” (each as defined in the Code), and (vi) proceeds of any of
the foregoing and all collateral security and guaranties of any kind given by any person or entity
with respect to any of the foregoing; and all warranties, guarantees, permits and licenses in favor
of Borrower with respect to the Property;

TOGETHER WITH all proceeds of the foregoing, including, without limitation, all judgments,
awards of damages and settlements hereafter made resulting from condemnation proceeds or the taking
of the Property or any portion thereof under the power of eminent domain, any proceeds of any
policies of insurance, maintained with respect to the Property or proceeds of any sale, option or
contract to sell the Property or any portion thereof.

TO HAVE AND TO HOLD the Property, unto Lender, its successors and assigns, forever, for the
purposes and upon the uses herein set forth together with all right to possession of the Property
following the occurrence and during the continuance of any Event of Default, and Borrower does
hereby bind itself, its successors and assigns, to WARRANT AND FOREVER DEFEND the title to the
Property unto Trustee, its successors and assigns, against the claim or claims of all persons
claiming or to claim the same or any part thereof, subject only to the Permitted Exceptions.

FOR THE PURPOSE OF SECURING: (i) the payment of the Loan and all interest, late charges,
LIBOR breakage charges (if any), exit fee (if any), reimbursement obligations, fees and expenses,
if any, other indebtedness evidenced by or owing under the Note, any of the Loan Documents,
together with any extensions, modifications, renewals or refinancings of any of the foregoing; (ii)
any and all obligations of Borrower to Lender or to any affiliate of Lender, whether now owing or
existing or later arising or created, owed absolutely or contingently, whether evidenced or
acquired (including all renewals, extensions, and modifications thereof or substitutions), under
any agreement, device or arrangement designed to protect Borrower from fluctuations of interest
rates, exchange rates or forward rates, including, but not limited to, dollar-denominated or
cross-currency exchange agreements, foreign currency exchange agreements, interest rate caps,
collars or floors, forward rate currency or interest rate options, puts, warrants, swaps,
swaptions, U.S. Treasury locks and U.S. Treasury options, (iii) any other interest rate hedging
transactions, such as, but not limited to, managing the Borrower’s interest rate risk associated
with any pending or potential capital market transactions such as fixed rate bond issues, (iv) any
and all cancellations, buybacks, reversals, terminations or assignments of any of the foregoing,
(v) all other indebtedness owed by Borrower to Lender; (vi) the performance and observance of the
covenants, conditions, agreements, representations, warranties and other liabilities and
obligations of Borrower or any other obligor to or benefiting Lender which are evidenced or secured
by or otherwise provided in the Note, this Deed of Trust or any of the Loan Documents, any interest
rate swap or hedge agreements now or hereafter entered into between Borrower and Lender; and
(vii) the reimbursement to Lender of any and all sums incurred, expended or advanced by Lender
pursuant to any term or provision of or constituting additional indebtedness under or secured by
this Deed of Trust, any of the Loan Documents, or any interest rate swap or hedge agreements now or
hereafter entered into between Borrower and Lender, with interest thereon as provided herein or
therein (collectively, “Indebtedness”). In no event shall this Deed of Trust secure
payment of any installment loan or any open-end line of credit established under Chapters 342, 343,
and 346, respectively, of the Texas Finance Code, as supplemented by the Texas Credit Title.

IT IS FURTHER UNDERSTOOD AND AGREED THAT:

1. Title. Borrower represents, warrants and covenants that (a) Borrower is the holder of the
fee simple title to the Property, free and clear of all liens and encumbrances, except those liens
and encumbrances in favor of Lender and as otherwise described on Exhibit B attached hereto
(“Permitted Exceptions”); and (b) Borrower has legal power and authority to mortgage and
convey the Property.

2. Maintenance, Repair, Restoration, Prior Liens, Parking. Borrower covenants that, so long
as any portion of the Indebtedness remains unpaid, Borrower will:

a. promptly repair, restore or rebuild any Improvements now or hereafter on the
Property which may become damaged or be destroyed to a condition substantially similar to
the condition immediately prior to such damage or destruction, whether or not proceeds of
insurance are available or sufficient for the purpose;

b. keep the Property in good condition and repair, without waste, and free from
mechanics’, materialmen’s or like liens or claims or other liens or claims for lien (subject
to Borrower’s right to contest liens as permitted by the terms of paragraph 25 hereof);

c. pay when due the Indebtedness in accordance with the terms of the Note and the Loan
Documents and duly perform and observe all of the terms, covenants and conditions to be
observed and performed by Borrower under the Note, this Deed of Trust and the Loan
Documents;

d. pay when due any indebtedness which may be secured by a permitted lien or charge on
the Property on a parity with, superior to or inferior to the lien hereof, and upon request
exhibit satisfactory evidence of the discharge of such lien to the Lender (subject to
Borrower’s right to contest liens as permitted by the terms of paragraph 25 hereof);

e. complete within a reasonable time any Improvements now or at any time in the process
of erection upon the Property;

f. comply with all requirements of law, municipal ordinances or, in all material
respects, with all restrictions and covenants of record with respect to the Property and the
use thereof;

g. obtain and maintain in full force and effect, and abide by and satisfy the material
terms and conditions of, all material permits, licenses, registrations and other
authorizations with or granted by any governmental authorities that may be required from
time to time with respect to the performance of its obligations under this Deed of Trust;

h. make no material alterations in the Property or demolish any portion of the Property
without Lender’s prior written consent, except as required by law or municipal ordinance;

i. suffer or permit no change in the use or general nature of the occupancy of the
Property, without the Lender’s prior written consent;

j. pay when due all operating costs of the Property;

k. not initiate or acquiesce in any zoning reclassification with respect to the
Property, without Lender’s prior written consent;

l. provide and thereafter maintain adequate parking areas within the Property as may be
required by law, ordinance or regulation (whichever may be greater), together with any
sidewalks, aisles, streets, driveways and sidewalk cuts and sufficient paved areas for
ingress, egress and right-of-way to and from the adjacent public thoroughfares necessary or
desirable for the use thereof; and

m. not operate the Property, and shall exercise commercially reasonable efforts to
prevent third party tenants from operating the Property, except in compliance with all
federal, state, local and municipal environmental, health and safety laws, statutes,
ordinances, rules and regulations.

3. Payment of Taxes and Assessments. Borrower will pay before any penalty attaches, all
general and special taxes, assessments, water charges, sewer charges, and other fees, taxes,
charges and assessments of every kind and nature whatsoever (all herein generally called
“Taxes”), whether or not assessed against Borrower, if applicable to the Property or any
interest therein, or the Indebtedness, or any obligation or agreement secured hereby, subject to
Borrower’s right to contest the same, as provided by the terms hereof; and Borrower will pay all
other charges prior to delinquency, including without limitation, governmental impositions, vault
charges and license fees for the use of vaults, chutes and similar areas adjoining the Real Estate,
now or hereafter levied or assessed or imposed against the Property or any part thereof, all ground
rents, maintenance charges, charges for utility services provided to the Property and similar
charges, encumbrances and liens, now or hereafter levied or assessed or imposed against the
Property or any part thereof (the “Other Charges”), and all costs, fees and expenses arising from
or relating to this Deed of Trust, including without limitation cost of evidence of title and
Trustee’s fees in connection with any foreclosure sale, whether completed or not, which amounts
shall become due upon demand. Borrower will deliver to Lender, promptly upon Lender’s request,
evidence reasonably satisfactory to Lender that the Taxes, Other Charges and utility service
charges have been so paid or are not then delinquent. Borrower shall not suffer and shall promptly
cause to be paid and discharged any lien or charge whatsoever which may be or become a lien or
charge against the Property, except liens permitted by the terms of this Deed of Trust. Except to
the extent sums sufficient to pay all Taxes and Other Charges have been deposited with Lender in
accordance with the term of this Deed of Trust, Borrower shall furnish to Lender or shall cause its
tenants to furnish to Lender paid receipts for the payment of the Taxes and Other Charges prior to
the date the same shall become delinquent.

4. Insurance. Borrower shall obtain and maintain mortgagee title insurance (in the form of a
commitment, binder, or policy as Lender may require) in form acceptable to Lender in an amount
equal to the original, maximum stated amount of the Note. Borrower shall keep the buildings and
other insurable Property, now or hereafter erected, placed in or on the Real Estate, insured as may
be required from time to time by the Lender in its reasonable discretion, against loss or damage by
fire, lightning, windstorm, hail, explosion, aircraft, smoke, vandalism, malicious mischief,
vehicle damage and other hazards, casualties and contingencies from time to time included under
“Extended Coverage” policies, and to carry any other kinds of insurance in such amounts and for
such periods as may from time to time be customary for similar property and sufficient to prevent
Borrower and Lender from being co-insurers of any loss under the policy, and in all events not less
than the full replacement value of the improvements and all property on the Real Estate, and at a
minimum as follows: (i) Commercial general liability insurance, on an occurrence basis, providing
coverage for those liabilities which is equal or broader than that currently covered by a CGL
policy (ISO CGL form CG000l) with primary coverage of not less than $1,000,000 per occurrence and
in the aggregate, with umbrella coverage of not less than $5,000,000 per occurrence and in the
aggregate (the deductible or self-insured retention under such policy shall not exceed $25,000.00);
(ii) Property insurance providing coverage equivalent to an “All risk” property insurance policy on
the Property providing coverage for those risks which is equal or broader than that currently
covered by a “special form” policy (ISO form CP 10 30) covering all Improvements, fixtures and
equipment comprising the Property in an amount equal to the full replacement cost of the same, and
in any event shall be maintained in amounts sufficient to avoid co-insurance (such insurance shall
also contain the following endorsements: Business Income with Extra Expense Coverage; Extended
Period of Indemnity for 360 days; Service Interruption; Ordinance or Law; Boiler and Machinery
(without exclusion for explosion); Legal Liability, the deductible or self-insured retention under
such policy shall not exceed $25,000.00); (iii) whenever structural construction repair or
alterations are being made with respect to the Improvements, Builder’s completed value risk
insurance, in non-reporting form, against all risks of physical loss, including collapse, covering
the total value of work performed and equipment, supplies and materials furnished for or as the
Property with delayed delivery coverage; and (iv) such other policies of insurance as Lender may
from time to time reasonably require, including, without limitation, insurance for personal injury,
business interruption/rent loss insurance. Such policies shall name Lender as loss payee
thereunder. Not less than thirty (30) days prior to the expiration of any policy of insurance,
Borrower will deliver to Lender evidence of renewal or new policies in like amounts covering the
same risks. All insurance shall be carried in insurance companies having at least an A, Class XII
rating by BEST Insurance Reports, and approved by Lender in its reasonable discretion and the
policies shall include the standard provision making loss payable to Lender as its interest may
appear. All certificates or policies of insurance shall be delivered to and be held by Lender, and
Borrower will pay promptly when due all premiums for such insurance. All insurance policies shall
bear a non-contributory first mortgage endorsement (in form satisfactory to Lender) in favor of
Lender and shall provide for at least (10) days prior notice to Lender before such policy may be
cancelled. Subject to subsections (i) – (ix) of this paragraph below, should any loss occur to the
insured Property the insurance company or companies are hereby directed by the Borrower to make
payment for such loss to the Lender only and not to the Borrower and Lender jointly, and the Lender
is hereby appointed attorney in fact for the Borrower to make proof of loss if Borrower fails to do
so promptly, and to receipt for any sums collected under said policies, which said sums or any part
thereof, at the option of the Lender, may be applied as payment on any indebtedness hereby secured,
or to the restoration or repair of the Property so destroyed or damaged or be released to Borrower.
Such application or release shall not cure or waive any default or notice of default hereunder or
invalidate any act done pursuant to such notice. Borrower promptly will give notice to the Lender
of any loss or damage to said Property and will not adjust or settle such loss without the written
consent of Lender. In the event of the foreclosure of this Deed of Trust, all right, title and
interest of Borrower in and to any insurance policy then in force shall pass to the purchaser at
the foreclosure sale, and the Trustee is hereby appointed attorney in fact for the Borrower to
assign and transfer said policies. Lender shall not be responsible for any insurance upon the
Property or the collection of any insurance money or for the insolvency of any insurer.
Notwithstanding the foregoing, Lender agrees that the net proceeds of insurance will be made
available to Borrower for the cost of restoration or repair of the Property, provided that each of
the following conditions is satisfied:

i. The aggregate amount of such net proceeds of insurance is less than One
Million Dollars ($1,000,000.00);

ii. No Event of Default has occurred and is continuing at the time of the
damage or destruction or at any time prior to the restoration of the Property;

iii. No Leases terminate as a result of the damage or destruction;

iv. Borrower gives Lender written notice within thirty (30) days after the date
the damage occurred that it intends to restore or repair the Property and requests
that the net insurance proceeds be made available therefore, and Borrower thereafter
promptly commences the restoration or repair and completes the same with reasonable
diligence in accordance with plans and specifications approved by Lender in its
reasonable discretion, subject to unavoidable delay;

v. The net insurance proceeds are sufficient, in Lender’s reasonable judgment,
to restore or repair the Property substantially to its condition prior to the damage
or destruction or, if in Lender’s reasonable judgment they are not, Borrower
deposits with Lender funds in an amount equal to the deficiency, which funds shall
be expended prior to use of the net insurance proceeds;

vi. Lender receives evidence satisfactory to the Lender that the Property can
lawfully be restored or repaired substantially to its condition prior to the damage
or destruction or such other condition as may be mutually acceptable to Lender and
Borrower, and that, upon completion of the restoration or repair, the Property can
be operated substantially as it was projected to operate before the damage or
destruction or can be operated in another manner as may be mutually acceptable to
Lender and Borrower;

vii. The damage or destruction can be fully restored prior to the Maturity Date
(as defined in the Note and incorporated herein);

viii. Sufficient business interruption/rent loss insurance is available to
cover all required debt service on the Loan and pay the other expenses of the
Property during the period of restoration or, if such insurance is not available,
Borrower deposits with Lender funds in an amount sufficient to cover such debt
service and other expenses; and

ix. All insurance proceeds are paid to Lender and held by Lender for
disbursement as provided elsewhere in this Deed of Trust with respect to
construction disbursements in an account at Lender.

TEXAS FINANCE CODE SECTION 307.052 COLLATERAL PROTECTION INSURANCE NOTICE: (A)
BORROWER IS REQUIRED TO: (I) KEEP THE PROPERTY INSURED AGAINST DAMAGE IN THE AMOUNT LENDER
SPECIFIES; (II) PURCHASE THE INSURANCE FROM AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN THE
STATE OF TEXAS OR AN ELIGIBLE SURPLUS LINES INSURER; AND (III) NAME LENDER AS THE PERSON TO BE PAID
UNDER THE POLICY IN THE EVENT OF A LOSS; (B) BORROWER MUST, IF REQUIRED BY LENDER, DELIVER TO
LENDER A COPY OF THE POLICY AND PROOF OF THE PAYMENT OF PREMIUMS; AND (C) IF BORROWER FAILS TO MEET
ANY REQUIREMENT LISTED IN PARAGRAPH (A) OR (B), LENDER MAY OBTAIN COLLATERAL PROTECTION INSURANCE
ON BEHALF OF BORROWER AT THE BORROWER’S EXPENSE.

5. Condemnation. If all or any part of the Property is damaged, taken or acquired, either
temporarily or permanently, in any condemnation proceeding, or by exercise of the right of eminent
domain, the amount of any award or other payment for such taking or damages made in consideration
thereof, to the extent of the full amount of the remaining unpaid Indebtedness, is hereby assigned
to Lender, who is empowered to collect and receive the same and to give proper receipts therefor in
the name of Borrower and the same shall be paid forthwith to Lender. Such award or monies shall be
applied on account of the Indebtedness, irrespective of whether such Indebtedness is then due and
payable and, at any time from and after the taking Lender may declare the whole of the balance of
the Indebtedness to be due and payable. Notwithstanding the provisions of this paragraph to the
contrary, if any condemnation or taking of less than the entire Property occurs and provided that
no Event of Default has occurred and is continuing, and if such partial condemnation, in the
reasonable discretion of Lender, has no material adverse effect on the operation or value of the
Property, then the award or payment for such taking or consideration for damages resulting
therefrom may be collected and received by Borrower, and Lender hereby agrees that in such event it
shall not declare the Indebtedness to be due and payable, if it is not otherwise then due and
payable.

6. Stamp Tax. If, by the laws of the United States of America, or of any state or political
subdivision having jurisdiction over Borrower, any tax is due or becomes due in respect of the
execution and delivery of this Deed of Trust, the Note or any of the Loan Documents, Borrower shall
pay such tax in the manner required by any such law. Borrower further agrees to reimburse Lender
for any sums which Lender may expend, to the extent reasonably incurred, by reason of the
imposition of any such tax. Notwithstanding the foregoing, Borrower shall not be required to pay
any income or franchise taxes of Lender.

7. Lease Assignment. Borrower acknowledges that, concurrently herewith, Borrower has executed
and delivered to Lender, as additional security for the repayment of the Loan, an Assignment of
Leases and Rents (“Assignment”) pursuant to which Borrower has assigned to Lender interests
in the leases of the Property and the rents and income from the Property. All of the provisions of
the Assignment are hereby incorporated herein as if fully set forth at length in the text of this
Deed of Trust. Borrower agrees to abide by all of the provisions of the Assignment.

8. Effect of Extensions of Time and Other Changes. If the payment of the Indebtedness or any
part thereof is extended or varied, if any part of any security for the payment of the Indebtedness
is released, if the rate of interest charged under the Note is changed or if the time for payment
thereof is extended or varied, all persons now or at any time hereafter liable therefor, or
interested in the Property or having an interest in Borrower, shall be held to assent to such
extension, variation, release or change and their liability and the lien and all of the provisions
hereof shall continue in full force, any right of recourse against all such persons being expressly
reserved by Lender, notwithstanding such extension, variation, release or change.

9. Effect of Changes in Laws Regarding Taxation. If any law is enacted after the date hereof
requiring (a) the deduction of any lien on the Property from the value thereof for the purpose of
taxation or (b) the imposition upon Lender of the payment of the whole or any part of the Taxes,
charges or liens herein required to be paid by Borrower, or (c) a change in the method of taxation
of mortgages or debts secured by mortgages or Lender’s interest in the Property, or the manner of
collection of taxes, so as to affect this Deed of Trust or the Indebtedness or the holders thereof,
then Borrower, upon demand by Lender, shall pay such Taxes or charges, or reimburse Lender
therefor; provided, however, that Borrower shall not be deemed to be required to pay any income or
franchise taxes of Lender. Notwithstanding the foregoing, if in the opinion of counsel for Lender
it is or may be unlawful to require Borrower to make such payment or the making of such payment
might result in the imposition of interest beyond the maximum amount permitted by law, then Lender
may declare all of the Indebtedness to be immediately due and payable.

10. Lender’s Performance of Defaulted Acts and Expenses Incurred by Lender. Following the
occurrence and during the continuance of any Event of Default, Lender may, but need not, make any
payment or perform any act herein required of Borrower in any form and manner deemed expedient by
Lender, and may, but need not, make full or partial payments of principal or interest on prior
encumbrances, if any, and purchase, discharge, compromise or settle any tax lien or other prior
lien or title or claim thereof, or redeem from any tax sale or forfeiture affecting the Property or
consent to any tax or assessment or cure any default of Borrower in any lease of the Property. All
actual out-of-pocket monies paid for any of the purposes herein authorized and all expenses
actually paid or reasonably incurred in connection therewith, including reasonable attorneys’ fees,
and any other monies advanced by Lender in regard to any tax referred to in paragraph 6 above or
to protect the Property or the lien hereof, shall be so much additional Indebtedness, and shall
become immediately due and payable by Borrower to Lender, upon demand, and with interest thereon
accruing from the date of such demand until paid at the Default Rate (as defined in the Note) then
in effect. In addition to the foregoing, any actual out-of-pocket costs, expenses and fees,
including reasonable attorneys’ fees, reasonably incurred by Lender in connection with
(a) sustaining the lien of this Deed of Trust or its priority, (b) protecting or enforcing any of
Lender’s rights hereunder, (c) recovering any Indebtedness, (d) any litigation or proceedings
affecting the Note, this Deed of Trust, any of the Loan Documents or the Property, including
without limitation, bankruptcy and probate proceedings, or (e)  preparing for the commencement,
defense or participation in any threatened litigation or proceedings affecting the Note, this Deed
of Trust, any of the Loan Documents or the Property, shall be so much additional Indebtedness, and
shall become immediately due and payable by Borrower to Lender, upon demand, and with interest
thereon accruing from the date of such demand until paid at the Default Rate. The interest
accruing under this paragraph 10 shall be immediately due and payable by Borrower to Lender, and
shall be additional Indebtedness evidenced by the Note and secured by this Deed of Trust. Lender’s
failure to act shall never be considered as a waiver of any right accruing to Lender on account of
any Event of Default. Should any amount paid out or advanced by Lender hereunder, or pursuant to
any agreement executed by Borrower in connection with the Loan, be used directly or indirectly to
pay off, discharge or satisfy, in whole or in part, any lien or encumbrance upon the Property or
any part thereof, then Lender shall be subrogated to any and all rights, equal or superior titles,
liens and equities, owned or claimed by any owner or holder of said outstanding liens, charges and
indebtedness, regardless of whether said liens, charges and indebtedness are acquired by assignment
or have been released of record by the holder thereof upon payment.

11. No Notice by Trustee. Trustee shall be under no obligation to notify any party hereto of
any action or proceeding of any kind in which Borrower, Lender and/or Trustee shall be named as
defendant, unless brought by Trustee.

12. Security Agreement. Borrower and Lender agree that this Deed of Trust shall constitute a
Security Agreement within the meaning of the Code with respect to (a) all sums at any time on
deposit for the benefit of Borrower or held by the Lender (whether deposited by or on behalf of
Borrower or anyone else) pursuant to any of the provisions of this Deed of Trust or the Loan
Documents, and (b) with respect to any personal property included in the granting clauses of this
Deed of Trust, which personal property may not be deemed to be affixed to the Property or may not
constitute a “fixture” (within the meaning of Section 9-102(41) of the Code) (which property is
hereinafter referred to as “Personal Property”), and all replacements of, substitutions
for, additions to, and the proceeds thereof, and the “supporting obligations” (as defined in the
Code) (all of said Personal Property and the replacements, substitutions and additions thereto and
the proceeds thereof being sometimes hereinafter collectively referred to as “Collateral”),
and that a security interest in and to the Collateral is hereby granted to the Lender, and the
Collateral and all of Borrower’s right, title and interest therein are hereby assigned to Lender,
all to secure payment of the Indebtedness. All of the provisions contained in this Deed of Trust
pertain and apply to the Collateral as fully and to the same extent as to any other property
comprising the Property; and the following provisions of this paragraph shall not limit the
applicability of any other provision of this Deed of Trust but shall be in addition thereto:

a. Borrower (being the Debtor as that term is used in the Code) is and will be the true
and lawful owner of the Collateral and has rights in and the power to transfer the
Collateral, subject to no liens, charges or encumbrances other than the lien hereof, other
liens and encumbrances benefiting Lender and no other party, and liens and encumbrances, if
any, expressly permitted by the Loan Documents.

b. The Collateral is to be used by Borrower solely for business purposes.

c. The Collateral will be kept at the Real Estate and, except for Obsolete Collateral
(as hereinafter defined), will not be removed therefrom without the consent of Lender (being
the Secured Party as that term is used in the Code), which consent shall not be unreasonably
withheld, conditioned or delayed. The Collateral may be affixed to the Real Estate but will
not be affixed to any other real estate.

d. The only persons having any interest in the Collateral are Borrower, Lender and
holders of interests, if any, expressly permitted hereby.

e. No Financing Statement (other than Financing Statements showing Lender as the sole
secured party, or with respect to liens or encumbrances, if any, expressly permitted hereby)
covering any of the Collateral or any proceeds thereof is on file in any public office
except pursuant hereto; and Borrower, at its own cost and expense, upon demand, will furnish
to Lender such further information and will execute and deliver to Lender such financing
statements and other documents in form satisfactory to Lender and will do all such acts as
Lender may request at any time or from time to time or as may be necessary or appropriate to
establish and maintain a perfected security interest in the Collateral as security for the
Indebtedness, subject to no other liens or encumbrances, other than liens or encumbrances
benefiting Lender and no other party and liens and encumbrances (if any) expressly permitted
hereby; and Borrower will pay the cost of filing or recording such financing statements or
other documents, and this instrument, in all public offices wherever filing or recording is
deemed by Lender to be desirable. Borrower hereby irrevocably authorizes Lender at any
time, and from time to time, to file in any jurisdiction any initial financing statements
and amendments thereto that (i) indicate the Collateral as all assets of Borrower (or words
of similar effect), regardless of whether any particular asset comprised in the Collateral
falls within the scope of Article 9 of the Uniform Commercial Code of the jurisdiction
wherein such financing statement or amendment is filed, or as being of an equal or lesser
scope or within greater detail, and (ii) contain any other information required by Section 5
of Article 9 of the Uniform Commercial Code of the jurisdiction wherein such financing
statement or amendment is filed regarding the sufficiency or filing office acceptance of any
financing statement or amendment, including whether Borrower is an organization, the type of
organization and any organization identification number issued to Borrower, and in the case
of a financing statement filed as a fixture filing or indicating Collateral as as-extracted
collateral or timber to be cut, a sufficient description of real property to which the
Collateral relates. Borrower agrees to furnish any such information to Lender promptly upon
request. Borrower further ratifies and affirms its authorization for any financing
statements and/or amendments thereto, executed and filed by Lender in any jurisdiction prior
to the date of this Deed of Trust.

f. Following the occurrence and during the continuance of an Event of Default
hereunder, Lender shall have the remedies of a secured party under the Code, including,
without limitation, the right to take immediate and exclusive possession of the Collateral,
or any part thereof, and for that purpose, so far as Borrower can give authority therefor,
with or without judicial process, may enter (if this can be done without breach of the
peace) upon any place which the Collateral or any part thereof may be situated and remove
the same therefrom (provided that if the Collateral is affixed to real estate, such removal
shall be subject to the conditions stated in the Code); and Lender shall be entitled to
hold, maintain, preserve and prepare the Collateral for sale, until disposed of, or may
propose to retain the Collateral subject to Borrower’s right of redemption in satisfaction
of Borrower’s obligations, as provided in the Code. Lender may render the Collateral
unusable without removal and may dispose of the Collateral on the Property. Lender may
require Borrower to assemble the Collateral and make it available to Lender for its
possession at a place to be designated by Lender which is reasonably convenient to both
parties. Lender will give Borrower at least ten (10) days’ notice of the time and place of
any public sale of the Collateral or of the time after which any private sale or any other
intended disposition thereof is made. The requirements of reasonable notice shall be met if
such notice is mailed, by certified United States mail or equivalent, postage prepaid, to
the address of Borrower hereinafter set forth at least ten (10) days before the time of the
sale or disposition. Lender may buy at any public sale. Lender may buy at private sale if
the Collateral is of a type customarily sold in a recognized market or is of a type which is
the subject of widely distributed standard price quotations. Any such sale may be held in
conjunction with any foreclosure sale of the Property. If Lender so elects, the Property
and the Collateral may be sold as one lot. The net proceeds realized upon any such
disposition, after deduction for the actual out-of-pocket expenses of retaking, holding,
preparing for sale, selling and the reasonable attorneys’ fees and legal expenses reasonably
incurred by Lender, shall be applied against the Indebtedness in such order or manner as
Lender shall select. Lender will account to Borrower for any surplus realized on such
disposition.

g. The terms and provisions contained in this paragraph 12, unless the context
otherwise requires, shall have the meanings and be construed as provided in the Code.

h. This Deed of Trust is intended to be a financing statement within the purview of
Section 9-502 of the Code with respect to the Collateral and the goods described herein,
which goods are or may become fixtures relating to the Property. The addresses of Borrower
(Debtor) and Lender (Secured Party) are hereinbelow set forth. This Deed of Trust is to be
filed for recording with the Recorder of Deeds of the county or counties where the Property
are located.

i. To the extent permitted by applicable law, the security interest created hereby is
specifically intended to cover all Leases between Borrower or its agents as lessor, and
various tenants named therein, as lessee, including all extended terms and all extensions
and renewals of the terms thereof, as well as any amendments to or replacement of said
Leases, together with all of the right, title and interest of Borrower, as lessor
thereunder.

j. Borrower represents and warrants that:

i. Borrower is the record owner of the Property;

ii. Borrower’s chief executive office is located at 1551 N. Tustin Avenue,
Suite 200, Santa Ana, California 92705.

iii. Borrower’s state of formation is the State of Delaware;

iv. Borrower’s exact legal name is as set forth in the first paragraph of this
Deed of Trust; and

v. Borrower’s organizational identification number is as set forth on the first
page of this Deed of Trust.

k. Borrower agrees that:

i. Where Collateral is in possession of a third party, Borrower will join with
the Lender in notifying the third party of the Lender’s interest and obtaining an
acknowledgment from the third party that it is holding the Collateral for the
benefit of Lender;

ii. Borrower will cooperate with the Lender in obtaining control with respect
to Collateral consisting of: deposit accounts, investment property, letter of
credit rights and electronic chattel paper; and

iii. Until the Indebtedness is paid in full, Borrower will not change the state
where it is located or change its company name without giving the Lender at least 30
days’ prior written notice in each instance.

13. Restrictions on Transfer and Distributions.

a. Other than in connection with a Permitted Transfer (defined below), Borrower,
without the prior written consent of Lender which shall not be unreasonably withheld,
conditioned or delayed, shall not effect, suffer or permit any Prohibited Transfer (as
defined herein). Any conveyance, sale, assignment, transfer, lien, pledge, mortgage,
security interest or other encumbrance or alienation (or any agreement to do any of the
foregoing) of any of the following properties or interests shall constitute a
“Prohibited Transfer”:

i. The Property or any part thereof or interest therein, excepting only sales
or other dispositions of Collateral (herein called “Obsolete Collateral”) no
longer useful in connection with the operation of the Property, provided that prior
to the sale or other disposition thereof, such Obsolete Collateral has been replaced
by Collateral of at least equal value and utility which is subject to the lien
hereof with the same priority as with respect to the Obsolete Collateral;

ii. All or any portion of the beneficial interest or power of direction in or
to the trust under which Borrower is acting, and all or any part of the partnership
interests in a partnership Borrower and all or any part of the member interests in a
limited liability company Borrower and all or any part of the shares of capital
stock of a corporate Borrower;

iii. Any shares of capital stock of a corporation which is a general partner or
member or manager in a partnership or limited liability company Borrower, or a
corporation which is the owner of substantially all of the capital stock of any
corporation described in this subparagraph (other than the shares of capital stock
of a corporate trustee or a corporation whose stock is publicly traded on a national
securities exchange or on the National Association of Securities Dealers’ Automated
Quotation System);

iv. A pledge of all or any part of the interest of a member or manager, as the
case may be, in a limited liability company Borrower or a limited liability company
which is a general partner of a partnership Borrower; or

v. All or any part of the general partner or joint venture interest, as the
case may be, of a partnership Borrower or a partnership which is a manager of a
limited liability company Borrower or the conversion of a partnership Borrower to a
corporation or limited liability company.

b. In determining whether or not to make the Loan, Lender evaluated the background and
experience of Borrower and its members in owning and operating property such as the
Property, found it acceptable and relied and continues to rely upon same as the means of
maintaining the value of the Property which is Lender’s security for the Note. Borrower and
its members are well experienced in borrowing money and owning and operating property such
as the Property, were ably represented by a licensed attorney at law in the negotiation and
documentation of the Loan and bargained at arm’s length and without duress of any kind for
all of the terms and conditions of the Loan, including this provision.

c. Upon the occurrence and during the continuance of an Event of Default, Borrower
shall not directly or indirectly declare or make, or incur any liability to make, any
Distribution to any person, without Lender’s prior written consent, other than any
Distribution that may be required to be made by Grubb & Ellis Healthcare REIT, Inc., to its
shareholders in order to maintain its status as a REIT. A “Distribution” means and includes
(i) any cash dividend or payment, (ii) any retirement or prepayment of debt securities
(other than the Loan or as otherwise permitted hereunder) before their regularly scheduled
maturity dates, (iii) any loan or advance to a member, shareholder or partner, (iv) any
direct or indirect purchase, redemption or other acquisition or retirement of any class of
its equity interest or capital stock. The foregoing limitations on Distributions shall not
apply other than upon the occurrence and during the continuance of an Event of Default and,
notwithstanding the foregoing, during such periods, Borrower may use rents, income and
profits of the Property to make Distributions pursuant to Borrower’s organizational
agreements and to pay management fees to its affiliate property management company for
management of the Property.

d. The “Permitted Transfer” is any transfer made in accordance with this
Section 13.d. Notwithstanding anything to the contrary contained in either this Deed of
Trust or any other Loan Document, the issuance, redemption, transfer or other conveyance of
the following interests (X) will not constitute a transfer of direct or indirect ownership
interests in Grubb & Ellis Healthcare REIT Holdings, L.P. or of indirect interests in the
Property, (Y) will not constitute a default or an Event of Default under the Guaranty, this
Deed of Trust, or any other Loan Document, and (Z) do not require the consent of Lender:

i. limited partnership interests in Grubb & Ellis Healthcare REIT Holdings,
L.P. and/or

ii. shares in Grubb & Ellis Healthcare REIT, Inc.

14. Single Asset Entity. Borrower shall not hold or acquire, directly or indirectly, any
ownership interest (legal or equitable) in any real or personal property other than the Property,
or become a shareholder of or a member or partner in any entity which acquires any property other
than the Property, until such time as the Indebtedness has been fully repaid. Borrower’s articles
of incorporation, partnership agreement or operating agreement, as applicable, shall limit its
purpose to the acquisition, operation, management and disposition of the Property, and such
purposes shall not be amended without the prior written consent of Lender. Borrower covenants:

a. To maintain its assets, accounts, books, records, financial statements, stationery,
invoices, and checks separate from and not commingled with any of those of any other person
or entity;

b. To conduct its own business in its own name, pay its own liabilities out of its own
funds, allocate fairly and reasonably any overhead for shared employees and office space, if
any, and to maintain an arm’s length relationship with its affiliates;

c. To hold itself out as a separate entity, correct any known misunderstanding
regarding its separate identity, maintain adequate capital in light of its contemplated
business operations, and observe all organizational formalities;

d. Not to guarantee or become obligated for the debts of any other entity or person or
hold out its credits as being available to satisfy the obligations of others, including not
acquiring obligations or securities of its partners, members or shareholders;

e. Not to pledge its assets for the benefit of any other entity or person or make any
loans or advances to any person or entity; and

f. Not to enter into any contract or agreement with any party which is directly or
indirectly controlling, controlled by or under common control with Borrower (an
“Affiliate”), except upon terms and conditions that are intrinsically fair and
substantially similar to those that would be available on an arms-length basis with third
parties other than any Affiliate.

15. Events of Default; Acceleration. Each of the following shall constitute an “Event of
Default” for purposes of this Deed of Trust:

a. Borrower fails to pay (i) any installment of principal or interest payable pursuant
to the Note within ten (10) days after the date when due, or (ii) any other amount payable
to Lender under the Note, this Deed of Trust or any of the Loan Documents within twenty (20)
days after the date when any such payment is due in accordance with the terms hereof or
thereof;

b. Borrower fails to perform or cause to be performed any other obligation or observe
any other condition, covenant, term, agreement or provision required to be performed or
observed by Borrower under the Note, this Deed of Trust or any of the Loan Documents;
provided, however, that if such failure by its nature can be cured, then so long as the
continued operation and safety of the Property, and the priority, validity and
enforceability of the liens created by the Deed of Trust or any of the Loan Documents and
the value of the Property are not impaired, threatened or jeopardized in any material
respect, then Borrower shall have a period (“Cure Period”) of thirty (30) days after
Borrower obtains actual knowledge of such failure or receives written notice of such failure
to cure the same and an Event of Default shall not be deemed to exist during the Cure
Period, provided further that if Borrower commences to cure such failure during the Cure
Period and is diligently and in good faith attempting to effect such cure, the Cure Period
shall be extended for thirty (30) additional days, but in no event shall the Cure Period be
longer than sixty (60) days in the aggregate;

c. the existence of any inaccuracy or untruth in any material respect in any
representation or warranty contained in this Deed of Trust or any of the Loan Documents or
of any statement or certification as to facts delivered to Lender by Borrower or any
guarantor of the Note, in each case, as and when such representation, warranty, statement or
certification was made;

d. Borrower or any guarantor of the Note files a voluntary petition in bankruptcy or is
adjudicated a bankrupt or insolvent or files any petition or answer seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar
relief under the present or any future federal, state, or other statute or law, or seeks or
consents to or acquiesces in the appointment of any trustee, receiver or similar officer of
Borrower or of all or any substantial part of the property of Borrower or any guarantor of
the Note or any of the Property or all or a substantial part of the assets of Borrower or
any guarantor of the Note are attached, seized, subjected to a writ or distress warrant or
are levied upon unless the same is released or located within ninety (90) days;

e. the commencement of any involuntary petition in bankruptcy against Borrower or any
guarantor of the Note or the institution against Borrower or any guarantor of the Note of
any reorganization, arrangement, composition, readjustment, dissolution, liquidation or
similar proceedings under any present or future federal, state or other statute or law, or
the appointment of a receiver, trustee or similar officer for all or any substantial part of
the property of Borrower or any guarantor of the Note which shall remain undismissed or
undischarged for a period of ninety (90) days;

f. the dissolution, termination or merger of Borrower or any guarantor of the Note;

g. the occurrence of a Prohibited Transfer; or

h. the occurrence of an “Event of Default” under the Note, or any of the Loan
Documents.

If an Event of Default occurs, Lender may, at its option, declare the whole of the
Indebtedness to be immediately due and payable without further notice to Borrower, with interest
thereon accruing from the date of such Event of Default until paid at the Default Rate.

16. Foreclosure; Expense of Litigation. Immediately upon and in the event of the occurrence
of an Event of Default until such Event of Default is cured or waived:

a. Foreclosure. Upon the occurrence of an Event of Default, Trustee, Trustee’s
successor or substitute, is authorized and empowered and it shall be Trustee’s special duty
at the request of Lender to sell the Property or any part thereof situated in the State of
Texas at the courthouse of any county in the State of Texas in which any part of the
Property is situated, at public auction to the highest bidder for cash. Notice of sale of
all or part of the Property by Trustee shall be given by posting written notice thereof at
the courthouse door (or other area in the courthouse as may be designated for such public
notices) of the county in which the sale is to be made, and by filing a copy of the notice
in the office of the county clerk of the county in which the sale is to be made, at least
twenty-one (21) days preceding the date of the sale, and if the Property to be sold is in
more than one county a notice shall be posted at the courthouse door (or other area in the
courthouse as may be designated for such public notices) and filed with the county clerk of
each county in which the Property to be sold is situated. If the Property to be sold is in
more than one county, the notice shall designate the county in which the Property is to be
sold. In addition, Lender shall, at least twenty-one (21) days preceding the date of sale,
serve written notice of the proposed sale by certified mail on Borrower and each debtor
obligated to pay the Indebtedness secured hereby according to the Lender’s records. Service
of such notice shall be completed upon deposit of the notice, enclosed in a postpaid
wrapper, properly addressed to such debtor at the most recent address as shown by the
records of Lender, in a post office or official depository under the care and custody of the
United States Postal Service. The affidavit of any person having knowledge of the facts to
the effect that such service was completed shall be prima facie evidence of the fact of
service. Any notice that is required or permitted to be given to Borrower may be addressed
to Borrower at Borrower’s Address stated above. Any notice that is to be given by certified
mail to any other debtor may, if no address for such other debtor is shown by the records of
Lender, be addressed to such other debtor at the address of Borrower as is shown by the
records of Lender. Notwithstanding the foregoing provisions of this Section 16(a), notice
of such sale given in accordance with the requirements of the applicable laws of the State
of Texas in effect at the time of such sale shall constitute sufficient notice of such sale.
Trustee or his successor or substitute may appoint or delegate any one or more persons as
agent to perform any act or acts necessary or incident to any sale held by Trustee,
including the posting of notices and the conduct of sale, but in the name and on behalf of
Trustee, his successor or substitute. If Trustee or his successor or substitute shall have
given notice of sale hereunder, any successor or substitute Trustee thereafter appointed may
complete the sale and the conveyance of the property pursuant thereto as if such notice had
been given by the successor or substitute Trustee conducting the sale. The sale shall take
place between the hours of 10 o’clock a.m. and 4 o’clock p.m. (the commencement of such sale
being no earlier than the time specified in the notice hereinafter described) on the first
Tuesday in any month, at such area of the courthouse as shall be designated from time to
time by the commissioners court of the specified county (or, if not so designated by the
commissioners court, at such other area in the courthouse as may be provided in the notice
of sale hereinafter described) after having given notice of such sale in accordance with the
statutes of the State of Texas then in force governing sales of real estate under powers
conferred by deed of trust. Any sale made by Trustee hereunder may be as an entirety or in
such parcels as Lender may request, and any sale may be adjourned by announcement at the
time and place appointed for such sale without further notice except as may be required by
law. The sale by Trustee of less than the whole of the Property shall not exhaust the power
of sale herein granted, and Trustee is specifically empowered to make successive sale or
sales under such power until the whole of the Property shall be sold; and, if the proceeds
of such sale of less than the whole of the Property shall be less than the aggregate of the
Indebtedness and the expense of executing this trust as provided herein, this Deed of Trust
and the lien hereof shall remain in full force and effect as to the unsold portion of the
Property just as though no sale had been made; provided, however, that Borrower shall never
have any right to require the sale of less than the whole of the Property, but Lender shall
have the right, at its sole election, to request Trustee to sell less than the whole of the
Property. After each sale, Trustee shall make to the purchaser or purchasers at such sale
good and sufficient conveyances in the name of Borrower, conveying the Property so sold to
the purchaser or purchasers in fee simple with general warranty of title, and shall receive
the proceeds of said sale or sales and apply the same as herein provided. The power of sale
granted herein shall not be exhausted by any sale held hereunder by Trustee or Trustee’s
substitute or successor, and such power of sale may be exercised from time to time as many
times as Lender may deem necessary until all of the Property has been duly sold and all
Indebtedness has been fully paid. In the event any sale hereunder is not completed or is
defective in the judgment of Lender, such sale shall not exhaust the power of sale hereunder
and Lender shall have the right to cause a subsequent sale or sales to be made hereunder.
If an Event of Default has occurred and is continuing under this Deed of Trust, Lender shall
have the option to proceed with foreclosure in satisfaction of such item, either through
judicial proceedings or by directing Trustee to proceed as if under a full foreclosure,
conducting the sale as herein provided without declaring the entire Indebtedness secured by
this Deed of Trust due and payable, and if sale is made because of an Event of Default with
respect to an installment payment or a portion of an installment, such sale may be made
subject to the unmatured part of the remaining unpaid Indebtedness; and it is agreed that
such sale, if so made, shall not in any manner affect the unmatured portion of the
Indebtedness secured by this Deed of Trust, but as to such unmatured part, this Deed of
Trust shall remain in full force and effect as though no sale had been made under the
provisions of this paragraph. Several sales may be made hereunder without exhausting the
right of sale for any unmatured part of the Indebtedness secured by this Deed of Trust. Any
and all statements of fact or other recitals made in any deed or deeds given by Trustee or
any successor or substitute appointed hereunder as to nonpayment of the Indebtedness secured
hereby, or as the occurrence of an Event of Default, or as to Lender having declared all of
such Indebtedness to be due and payable, or as to the request to sell, or as to notice of
time, place and terms of sale and of the properties to be sold having been duly given, or as
to the refusal, failure or inability to act of Trustee or any substitute or successor, or as
to the appointment of any substitute or successor trustee, or as to any other act or thing
having been duly done by Lender or by such Trustee, substitute or successor, shall be taken
as prima facie evidence of the truth of the facts so stated and recited. Trustee, his
successor or substitute, may appoint or delegate any one or more persons as agent to perform
any act or acts necessary or incident to any sale held by Trustee, including the posting of
notices and the conduct of sale, but in the name and on behalf of Trustee, his successor or
substitute.

b. Receivership. Lender shall be entitled, ex parte, to the appointment of a receiver
of the Property without consideration of the value of the Property as security for amounts
due or the solvency of any person liable for the payment of such amounts; and/or

c. Code Remedies. Lender shall have the remedies of a secured party under the Code,
including, without limitation, the right to take immediate and exclusive possession of the
Collateral, or any part thereof, and for that purpose, so far as Borrower can give authority
therefor, with or without judicial process, may enter (if this can be done without breach of
the peace) upon any place which the Collateral or any part thereof may be situated and
remove the same therefrom (provided that if the Collateral is affixed to real estate, such
removal shall be subject to the conditions stated in the Code); and Lender shall be
entitled to hold, maintain, preserve and prepare the Collateral for sale, until disposed of,
or may propose to retain the Collateral subject to Borrower’s right of redemption in
satisfaction of Borrower’s obligations, as provided in the Code. Lender may render the
Collateral unusable without removal and may dispose of the Collateral on the Property.
Lender may require Borrower to assemble the Collateral and make it available to Trustee for
its possession at a place to be designated by Trustee which is reasonably convenient to both
parties. Lender will give Borrower at least ten (10) days notice of the time and place of
any public sale of the Collateral or of the time after which any private sale or any other
intended disposition thereof is made. The requirements of reasonable notice shall be met if
such notice is mailed, by certified United States mail or equivalent, postage prepaid, to
the address of Borrower hereinafter set forth at least ten (10) days before the time of the
sale or disposition. Trustee or Lender may buy at any public sale. Trustee or Lender may
buy at private sale if the Collateral is of a type customarily sold in a recognized market
or is of a type which is the subject of widely distributed standard price quotations. Any
such sale may be held in conjunction with any foreclosure sale of the Property. If Lender
so elects, the Property and the Collateral may be sold as one lot. The net proceeds
realized upon any such disposition, after deduction for the expenses of retaking, holding,
preparing for sale, selling and the reasonable attorneys’ fees and legal expenses incurred
by Lender, shall be applied against the Note’ indebtedness in such order or manner as Lender
shall select. Lender will account to Borrower for any surplus realized on such disposition.
The terms and provisions contained in this paragraph, unless the context otherwise
requires, shall have the meanings and be construed as provided in the Code; and/or

d. Legal and Equitable Remedies. Lender may pursue every legal and equitable remedy
available at law and at equity. Borrower and all persons dealing with the Property through
or under the Borrower and their successors and assigns, including, without limitation all
subsequent purchasers of all or any portion of the Property and all persons holding or
obtaining an interest in the Property which is junior and subordinate to this Deed of Trust,
by taking and accepting their respective conveyances, encumbrances, deeds of trust, or liens
do hereby acknowledge, covenant and agree with Lender that (i) upon occurrence of an Event
of Default in the repayment of the indebtedness secured hereby, or in the event of any Event
of Default under the terms of this Deed of Trust, or under any other deed of trust or
security agreement securing the same indebtedness as is secured by this Deed of Trust, in
each case until such Event of Default is cured or waived, whether directly or by virtue of a
cross-collateralization agreement or under any other loan document, the Lender may proceed
to seek foreclosure or any other relief available at law or in equity in any order which
Lender may determine, in Lender’s sole discretion, and Lender may proceed against any
Property or collateral securing said indebtedness in any order which Lender elects without
regard to any matters which could or might be raised by any subsequent purchaser or by any
junior lienholder or encumbrancer under those certain equitable doctrines known as the
doctrine of “marshalling of assets” and the doctrine of “inverse order of alienation”, (ii)
they will not assert, and they do hereby waive any right to assert, the doctrine of
marshalling of assets or any similar equitable doctrines, (iii) they will not assert, and
they do hereby waive any right to assert, the doctrine of inverse order of alienation or any
similar equitable doctrines; and (iv) they will not assert, and they do hereby waive any
right to assert, any right to a determination of fair market value and/or to an offset
against any deficiency resulting from a foreclosure sale (pursuant to Section 51.002 of the
Texas Property Code, to any other non-judicial foreclosure, or to a judicial foreclosure) of
the Property, including, without limitation, any such rights that Borrower or any other
guarantor or obligor may otherwise have under Sections 51.003, 51.004, and/or 51.005 of the
Texas Property Code

e. Possession After Foreclosure. Should the Borrower remain in possession of said
Property after a foreclosure sale hereunder, then in that event the relation of landlord and
tenant shall be created and shall exist between any purchaser at such foreclosure sale and
the Borrower, from and after said foreclosure sale, and such relation of landlord and tenant
shall be a tenancy at will of the purchaser at such foreclosure sale and, should such tenant
refuse to surrender said Property upon demand, the purchaser shall thereupon be entitled to
institute and maintain an action for possession of said Property, provided, however, that
the purchaser at the sale may, at such purchaser’s option, either affirm or disaffirm,
within a reasonable time after the sale, any leases placed on the Property after the date of
this instrument and in effect at the time of foreclosure sale.

17. Lender’s Right of Possession in Case of Default. At any time following the occurrence and
during the continuance of an Event of Default, Borrower shall, upon demand of Lender, surrender to
Lender possession of the Property. Lender, in its discretion, may, with process of law, enter upon
and take and maintain possession of all or any part of the Property, together with all documents,
books, records, papers and accounts relating thereto, and may exclude Borrower and its employees,
agents or servants therefrom, and Lender may then hold, operate, manage and control the Property,
either personally or by its agents. Lender shall have full power to use such measures, legal or
equitable, as in its discretion may be deemed proper or necessary to enforce the payment or
security of the avails, rents, issues, and profits of the Property, including actions for the
recovery of rent, actions in forcible detainer and actions in distress for rent. Without limiting
the generality of the foregoing, Lender shall have full power to:

a. cancel or terminate any lease or sublease for any cause or on any ground which would
entitle Borrower to cancel the same;

b. elect to disaffirm any lease or sublease which is then subordinate to the lien
hereof;

c. extend or modify any then existing leases and to enter into new leases, which
extensions, modifications and leases may provide for terms to expire, or for options to
lessees to extend or renew terms to expire, beyond the Maturity Date and beyond the date of
the issuance of a deed or deeds to a purchaser or purchasers at a foreclosure sale, it being
understood and agreed that any such leases, and the options or other such provisions to be
contained therein, shall be binding upon Borrower and all persons whose interests in the
Property are subject to the lien hereof and upon the purchaser or purchasers at any
foreclosure sale, notwithstanding any redemption from sale, discharge of the Indebtedness,
satisfaction of any foreclosure judgment, or issuance of any certificate of sale or deed to
any purchaser;

d. make any repairs, renewals, replacements, alterations, additions, betterments and
improvements to the Property as Lender deems are necessary;

e. insure and reinsure the Property and all risks incidental to Lender’s possession,
operation and management thereof; and

f. receive all of such avails, rents, issues and profits.

18. Concerning the Trustee. Lender may at any time, either orally or by instrument in
writing, appoint a successor Trustee in lieu of the Trustee herein named or in lieu of any
successor Trustee, who shall thereupon become invested with all the title, power, authority and
duties hereby conferred upon Trustee herein, the same as if said successor had been named original
Trustee by this instrument. Trustee, where applicable, shall not be liable for any error or act
done by Trustee in good faith, or be otherwise responsible or accountable under any circumstances
whatsoever (INCLUDING TRUSTEE’S NEGLIGENCE), except for Claims directly arising from the gross
negligence, willful misconduct, bad faith or illegal acts of Trustee. Subject to the
foregoing sentence, the Lender shall indemnify, defend and hold harmless Trustee from and against
any and all claims, liabilities, penalties, and costs, including attorney’s fees, arising from any
claim, demand, order, or other action or dispute related in any way to Trustee’s duties under this
Deed of Trust. The foregoing indemnity shall not terminate upon discharge of the indebtedness or
foreclosure, or release or other termination of this instrument.

19. Application of Income Received by Lender. Lender, in the exercise of the rights and
powers hereinabove conferred upon it, at any time following the occurrence and during the
continuance of an Event of Default, shall have full power to use and apply the avails, rents,
issues and profits of the Property to the payment of or on account of the following, in such order
as Lender may determine:

a. to the payment of the operating expenses of the Property, including cost of
management and leasing thereof (which shall include compensation to Lender and its agent or
agents, if management be delegated to an agent or agents, and shall also include lease
commissions and other compensation and expenses of seeking and procuring tenants and
entering into leases), established claims for damages, if any, and premiums on insurance
hereinabove authorized;

b. to the payment of taxes and special assessments now due or which may hereafter
become due on the Property; and

c. to the payment of any Indebtedness, including any deficiency which may result from
any foreclosure sale.

20. Rights Cumulative. Each right, power and remedy herein conferred upon Lender is
cumulative and in addition to every other right, power or remedy, express or implied, given now or
hereafter existing under any of the Loan Documents or at law or in equity, and each and every
right, power and remedy herein set forth or otherwise so existing may be exercised from time to
time as often and in such order as may be deemed expedient by Lender, and the exercise or the
beginning of the exercise of one right, power or remedy shall not be a waiver of the right to
exercise at the same time or thereafter any other right, power or remedy, and no delay or omission
of Lender in the exercise of any right, power or remedy accruing hereunder or arising otherwise
shall impair any such right, power or remedy, or be construed to be a waiver of any Event of
Default or acquiescence therein.

21. Lender’s Right of Inspection. Lender and its representatives shall have the right to
inspect the Property and the books and records with respect thereto at all reasonable times upon
not less than twenty-four (24) hours prior notice to Borrower, and access thereto, subject to the
rights of tenants in possession, shall be permitted for that purpose.

22. Release Upon Payment and Discharge of Borrower’s Obligations. Lender shall release this
Deed of Trust and the lien hereof by proper instrument upon payment and discharge of all
Indebtedness, including payment of all reasonable expenses incurred by Lender in connection with
the execution of such release.

23. Notices. Any notices, communications and waivers under this Deed of Trust shall be in
writing and shall be (i) delivered in person, (ii) mailed, postage prepaid, either by registered or
certified mail, return receipt requested, or (iii) by overnight express carrier, addressed in each
case as follows:

	 	 	 
	To Lender:

	 	National City Bank

120 S. Central, 9th Floor

Clayton, MO 63105

Attn.: William R. Bennett, Jr.
	With a copy to:

	 	Husch Blackwell Sanders LLP

720 Olive St., 24th Floor

St. Louis, Missouri 63101

Attn.: John P. McNearney
	To Borrower:

	 	G&E Healthcare REIT Cypress Station, LLC

1551 N. Tustin, Suite 200

Santa Ana, California 92705

Attn.: Shannon Johnson
	With a copy to:

	 	Cox, Castle & Nicholson, LLP

2049 Century Park East, 28th Floor

Los Angeles, California 90067

Attn.: Adriana Vesci

or to any other address as to any of the parties hereto, as such party shall designate in a written
notice to the other party hereto. All notices sent pursuant to the terms of this paragraph shall
be deemed received (i) if personally delivered, then on the date of delivery, (ii) if sent by
overnight, express carrier, then on the next federal banking day immediately following the day
sent, or (iii) if sent by registered or certified mail, then on the earlier of the third federal
banking day following the day sent or when actually received.

24. Waiver by Borrower. Borrower hereby waives, to the extent permitted by law, the benefit
of all appraisement, valuation, stay, extension, reinstatement and redemption laws now or hereafter
in force and all rights of marshaling in the event of any sale hereunder of the Property or any
part thereof or any interest therein. Further, Borrower hereby expressly waives any and all rights
of redemption from sale under any order or decree of foreclosure of this Deed of Trust on behalf of
Borrower, and on behalf of each and every person acquiring any interest in or title to the Property
subsequent to the date of this Deed of Trust and on behalf of all persons to the extent permitted
by applicable law. Borrower shall not be entitled to and waives, to the extent permitted by
applicable law, any notice of default, demand for payment, notice of intent to accelerate the
maturity of all or any portion of the Indebtedness secured hereby and any notices of any nature
whatsoever from Lender except (a) with respect to matters for which this Deed of Trust specifically
and expressly provides for the giving of notice by Lender to Borrower and (b) with respect to
matters for which Lender is required by applicable law to give notice, and Borrower hereby
expressly waives the right to receive any notice from Lender with respect to any matter for which
this Deed of Trust does not specifically and expressly provide for the giving of notice by Lender
to Borrower. Borrower hereby expressly waives and releases to the fullest extent permitted by law,
the pleading of any statute of limitations as a defense to payment of the indebtedness secured
hereby or performance under the Guarantees (as defined in the Note and incorporated herein).

25. Contests. Notwithstanding anything to the contrary contained in any of the Loan
Documents, Borrower shall have the right to contest by appropriate legal proceedings diligently
prosecuted any Taxes imposed or assessed upon the Property or which may be or become a lien thereon
and any mechanics’, materialmen’s or other liens or claims for lien upon the Property (all herein
called “Contested Liens”), and no Contested Liens shall constitute an Event of Default
hereunder, if, but only if:

a. Borrower shall forthwith give notice of any Contested Lien to Lender at the time the
contest of the same shall be asserted;

b. Borrower shall either pay under protest or deposit with Lender the full amount
(herein called “Lien Amount”) of such Contested Lien, together with such amount as
Lender may reasonably estimate as interest or penalties which might arise during the period
of contest; provided that in lieu of such payment Borrower may furnish to Lender a bond or
title indemnity in such amount and form, and issued by a bond or title insuring company, as
may be satisfactory to Lender in the exercise of its reasonable discretion;

c. Borrower shall diligently prosecute the contest of any Contested Lien by appropriate
legal proceedings having the effect of staying the foreclosure or forfeiture of the
Property, and shall permit Lender to be represented in any such contest and shall pay all
expenses actually incurred, in so doing, including the reasonable fees and expenses of
Lender’s counsel (all of which shall constitute so much additional Indebtedness bearing
interest at the Default Rate until paid, and payable upon demand);

d. Borrower shall pay such Contested Lien and all Lien Amounts together with interest
and penalties thereon (i) if and to the extent that any such Contested Lien shall be
determined adverse to Borrower, or (ii) forthwith upon demand by Lender if, in the
reasonable opinion of Lender, and notwithstanding any such contest, the Property shall be in
jeopardy or in danger of being forfeited or foreclosed; provided that if Borrower shall fail
so to do, Lender may, but shall not be required to, pay all such Contested Liens and Lien
Amounts and interest and penalties thereon and such other sums as may be necessary in the
judgment of the Lender to obtain the release and discharge of such liens; and any amount
actually expended by Lender in so doing shall be so much additional Indebtedness bearing
interest at the Default Rate until paid, and payable upon demand; and provided further that
Lender may in such case use and apply monies deposited as provided in subsection (b) above
and may demand payment upon any bond or title indemnity furnished as aforesaid.

26. Expenses Relating to Note and Deed of Trust.

a. Borrower will pay all actual out-of-pocket expenses, charges, costs and fees
relating to the Loan or necessitated by the terms of the Note, this Deed of Trust or any of
the Loan Documents, including without limitation, Lender’s reasonable attorneys’ fees in
connection with the negotiation, documentation, administration, servicing and enforcement of
the Note, this Deed of Trust and the Loan Documents, all filing, registration and recording
fees, all other reasonably incurred expenses incident to the execution and acknowledgment of
this Deed of Trust and all federal, state, county and municipal taxes, and other taxes
(provided Borrower shall not be required to pay any income or franchise taxes of Lender),
duties, imposts, assessments and charges arising out of or in connection with the execution
and delivery of the Note and this Deed of Trust. Borrower recognizes that, during the term
of this Deed of Trust, Lender:

i. May be involved in court or administrative proceedings, including, without
restricting the foregoing, foreclosure, probate, bankruptcy, creditors’
arrangements, insolvency, housing authority and pollution control proceedings of any
kind, to which Lender shall be a party by reason of the Loan Documents or in which
the Loan Documents or the Property are involved directly or indirectly;

ii. May make preparations during the existence of an Event of Default hereunder
for the commencement of any suit for the foreclosure hereof, which may or may not be
actually commenced;

iii. May make preparations during the existence of an Event of Default
hereunder for, and do work in connection with, Lender’s taking possession of and
managing the Property, which event may or may not actually occur;

iv. May make preparations for and commence other private or public actions to
remedy an Event of Default hereunder, which other actions may or may not be actually
commenced;

v. May enter into negotiations with Borrower or any of its agents, employees or
attorneys in connection with the existence or curing of any Event of Default
hereunder, the sale of the Property, the assumption of liability for any of the
Indebtedness or the transfer of the Property in lieu of foreclosure; or

vi. May enter into negotiations with Borrower or any of its agents, employees
or attorneys pertaining to Lender’s approval of actions taken or proposed to be
taken by Borrower which approval is required by the terms of this Deed of Trust.

b. All expenses, charges, costs and fees described in this paragraph 26 shall be so
much additional Indebtedness, shall bear interest from the date so incurred until paid at
the Default Rate and shall be paid, together with said interest, by Borrower forthwith upon
demand.

27. Financial Statements. Borrower shall keep adequate books and records of account in
accordance with generally accepted accounting principles (“GAAP”), or in accordance with other
methods acceptable to Lender in its reasonable discretion, consistently applied and furnish to
Lender:

a. Semi-annual operating statements of the Property, prepared and certified by Borrower
in the form required by Lender, detailing the revenues received, the expenses incurred and
the net operating income before and after debt service (principal and interest) and capital
improvements for that six-month period and containing appropriate year to date information,
within forty five (45) days after the end of each six-month period ending June 30 and
December 31 each year;

b. Annual financial reports including balance sheet and profit and loss statements of
Borrower in the form required by Lender, prepared and certified by Borrower in the form
required by Lender within ninety (90) days after the close of each fiscal year of Borrower;

c. Annual tax returns of Borrower prepared by a certified public accountant reasonably
acceptable to Lender within thirty (30) days after filing; Lender hereby acknowledges that a
tax return for Borrower prepared by a certified public accountant employed by Borrower’s
parent company is acceptable to Lender;

d. Such other additional financial or management information (including State and
Federal tax returns) as may, from time to time, be reasonably required by Lender in form and
substance satisfactory to Lender in its reasonable discretion;

e. Annual audited financial statements with respect to all guarantors of the Loan,
audited by an independent certified public accountant within the later of 90 days after the
close of each fiscal year or 10 days after the filing of Borrower’s Annual Report on Form
10-K with the SEC; and

f. Convenient facilities for the examination and audit of any such books and records.

28. Statement of Indebtedness. Borrower, within ten (10) business days after being so
requested by Lender, shall furnish a duly acknowledged written statement setting forth the amount
of the debt secured by this Deed of Trust, the date to which interest has been paid and stating
either that no offsets or defenses exist against such debt or, if such offsets or defenses are
alleged to exist, the nature thereof; provided, however, unless an Event of Default shall have
occurred and is continuing, Lender shall not request such statement more frequently than once each
calendar quarter during the term of the Loan.

29. Further Instruments. Upon request of Lender, Borrower shall execute, acknowledge and
deliver all such additional instruments and further assurances of title and shall do or cause to be
done all such further acts and things, in each case, as may reasonably be necessary fully to
effectuate the intent of this Deed of Trust and of the Loan Documents.

30. Indemnity. Borrower hereby covenants and agrees that no liability shall be asserted or
enforced against Lender or Trustee in the exercise of the rights and powers granted to Lender or
Trustee in this Deed of Trust, and Borrower hereby expressly waives and releases any such
liability, except to the extent of Lender’s or Trustee’s gross negligence, willful misconduct, bad
faith or illegal acts. Borrower shall indemnify and save Lender and Trustee harmless from and
against any and all liabilities, obligations, losses, damages, claims, costs and expenses
(including reasonable attorneys’ fees and court costs but excluding punitive or other exemplary
damages, diminution in value, lost profits or lost opportunity costs) (collectively,
“Claims”) of whatever kind or nature which may be imposed on, incurred by or asserted
against Lender or Trustee at any time by any third party which relate to or arise from: (a) any
suit or proceeding (including probate and bankruptcy proceedings), or the threat thereof, in or to
which Lender or Trustee may or does become a party, either as plaintiff or as a defendant, by
reason of this Deed of Trust or for the purpose of protecting the lien of this Deed of Trust;
(b) the offer for sale or sale of all or any portion of the Property; and (c) the ownership,
leasing, use, operation or maintenance of the Property, if such Claims relate to or arise from
actions taken prior to the surrender of possession of the Property to Lender (or any third party)
in accordance with the terms of this Deed of Trust (INCLUDING THE NEGLIGENCE OF LENDER OR TRUSTEE);
provided, however, that Borrower shall not be obligated to indemnify or hold Lender or Trustee
harmless from and against any Claims directly arising from the gross negligence, willful
misconduct, bad faith or illegal acts of Lender or Trustee, respectively. All costs provided for
herein and paid for by Lender shall be so much additional Indebtedness and shall become immediately
due and payable upon demand by Lender and with interest thereon from the date incurred by Lender
until paid at the Default Rate.

31. Compliance with Environmental Laws. Borrower acknowledges that concurrently herewith
Borrower has executed and delivered to Lender an Environmental Indemnity Agreement
(“Indemnity”) pursuant to which Borrower and Guarantor (as defined in the Note) have
indemnified Lender for certain environmental matters concerning the Property, as more particularly
described therein. The provisions of the Indemnity are hereby incorporated herein and this Deed of
Trust shall secure the obligations of Borrower thereunder. Borrower agrees to abide by all of the
provisions of the Indemnity.

32. Miscellaneous.

a. Usury Disclaimer. The term “Maximum Lawful Rate” means the maximum rate of interest
and the term “Maximum Lawful Amount” means the maximum amount of interest that are
permissible under applicable state or federal law for the type of loan evidenced by the Note
and the other Loan Documents. Lender does not intend to contract for, charge, or receive
more than the Maximum Lawful Rate or Maximum Lawful Amount permitted by applicable state or
federal law, and to prevent such an occurrence Lender and Borrower agree that all amounts of
interest, whenever contracted for, charged or received by Lender, with respect to the loan
of money evidenced by the Note or with respect to any other amount payable under this
Instrument or any of the other Loan Documents, shall be spread, prorated or allocated over
the full period of time the Note is unpaid, including the period of any renewal or extension
of the Note. If demand for payment of the Note is made by Lender prior to the full stated
term, the total amount of interest contracted for, charged or received to the time of such
demand shall be spread, prorated or allocated along with any interest thereafter accruing
over the full period of time that the Note thereafter remains unpaid for the purpose of
determining if such interest exceeds the Maximum Lawful Amount. At maturity (including
maturity due to Lender’s acceleration of the Note) or on earlier final payment of the Note,
Lender shall compute the total amount of interest that has been contracted for, charged or
received by Lender or payable by Borrower under the Note and compare such amount to the
Maximum Lawful Amount that could have been contracted for, charged or received by Lender.
If such computation reflects that the total amount of interest that has been contracted for,
charged or received by Lender or payable by Borrower exceeds the Maximum Lawful Amount, then
Lender shall apply such excess to the reduction of the principal balance and not to the
payment of interest; or if such excess interest exceeds the unpaid principal balance, such
excess shall be refunded to Borrower. This provision concerning the crediting or refund or
excess interest shall control and take precedence over all other agreements between Borrower
and Lender so that under no circumstances shall the total interest contracted for, charged
or received by Lender exceed the Maximum Lawful Amount.

b. Successors and Assigns. This Deed of Trust and all provisions hereof shall be
binding upon and enforceable against Borrower and its assigns and other successors. This
Deed of Trust and all provisions hereof shall inure to the benefit of Lender, its successors
and assigns and any holder or holders, from time to time, of the Note.

c. Invalidity of Provisions. In the event that any provision of this Deed of Trust is
deemed to be invalid by reason of the operation of law, or by reason of the interpretation
placed thereon by any administrative agency or any court, Borrower and Lender shall
negotiate an equitable adjustment in the provisions of the same in order to effect, to the
maximum extent permitted by law, the purpose of this Deed of Trust and the validity and
enforceability of the remaining provisions, or portions or applications thereof, shall not
be affected thereby and shall remain in full force and effect.

d. Relationship of Lender and Borrower. Lender shall in no event be construed for any
purpose to be a partner, joint venturer, agent or associate of Borrower or of any lessee,
operator, concessionaire or licensee of Borrower in the conduct of their respective
businesses, and, without limiting the foregoing, Lender shall not be deemed to be such
partner, joint venturer, agent or associate on account of Lender becoming a Lender in
possession or exercising any rights pursuant to this Deed of Trust, any of the Loan
Documents, or otherwise. The relationship of Borrower and Lender hereunder is solely that
of debtor/creditor.

e. Time of the Essence. Time is of the essence of the payment by Borrower of all
amounts due and owing to Lender under the Note and the Loan Documents and the performance
and observance by Borrower of all terms, conditions, obligations and agreements contained in
this Deed of Trust and the Loan Documents.

f. No Merger. The parties hereto intend that the Deed of Trust and the lien hereof
shall not merge in fee simple title to the Property, and if Lender acquires any additional
or other interest in or to the Property or the ownership thereof, then, unless a contrary
intent is manifested by Lender as evidenced by an express statement to that effect in an
appropriate document duly recorded, this Deed of Trust and the lien hereof shall not merge
in the fee simple title and this Deed of Trust may be foreclosed as if owned by a stranger
to the fee simple title.

g. Governing Law. This Deed of Trust and the rights and obligations of the parties
hereunder and thereunder shall be governed by and construed and interpreted in accordance
with the internal Laws of the State of Texas applicable to contracts made and to be
performed wholly within such state, without regard to choice or conflicts of law principles.

h. WAIVER OF JURY TRIAL. BORROWER AND LENDER HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS DEED OF TRUST OR ANY
OTHER LOAN DOCUMENT, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES HERETO OR EITHER OF THEM IN RESPECT OF THIS DEED OF TRUST OR ANY
OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.
BORROWER AND LENDER EACH HEREBY CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT EITHER MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS DEED OF TRUST WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

i. VENUE AND JURISDICTION. SUBJECT ONLY TO THE EXCEPTION IN THE NEXT SENTENCE, BORROWER
AND LENDER HEREBY AGREE TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL COURT OF THE SOUTHERN
DISTRICT OF TEXAS AND THE STATE COURTS OF TEXAS LOCATED IN HARRIS COUNTY, TEXAS AND WAIVE
ANY OBJECTION BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT TO
ANY ACTION INSTITUTED THEREIN, AND AGREE THAT ANY DISPUTE CONCERNING THE RELATIONSHIP
BETWEEN LENDER AND BORROWER OR THE CONDUCT OF ANY OF THEM IN CONNECTION WITH THIS AGREEMENT
OR OTHERWISE SHALL BE HEARD ONLY IN THE COURTS DESCRIBED ABOVE. NOTWITHSTANDING THE
FOREGOING: (1) LENDER SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST
BORROWER OR ITS PROPERTY IN ANY COURTS OF ANY OTHER JURISDICTION LENDER DEEMS NECESSARY OR
APPROPRIATE IN ORDER TO REALIZE ON THE PROPERTY, OR OTHER SECURITY FOR THE LOAN OBLIGATIONS,
AND (2) EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED
IN THE IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE
JURISDICTIONS.

j. Complete Agreement. This Deed of Trust, the Note and the Loan Documents constitute
the complete agreement between the parties with respect to the subject matter hereof and the
Loan Documents may not be modified, altered or amended except by an agreement in writing
signed by both Borrower and Lender.

k. Liability of Indirect Owners. Except for any obligations of any indirect owner of
Borrower under any guaranty or indemnity executed by such owner in favor of Lender in
connection with the Loan, no such indirect owner of Borrower shall be personally liable, and
Lender shall not commence or prosecute any action against any such party, for payment or
performance of any Loan obligation; and Lender shall not seek or obtain a deficiency
judgment against any such party in connection with the Loan.

l. NOTICE OF FINAL AGREEMENT. THIS WRITTEN DEED OF TRUST AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signature on Following Page]

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IN WITNESS WHEREOF, Borrower has executed and delivered this Deed of Trust the day and year
first above written.

	 	 	 	 	 
	BORROWER:
	 	 	 	 
	G&E HEALTHCARE REIT CYPRESS
STATION, LLC, a Delaware limited
liability company
By: /s/ Shannon K S Johnson
Print Name: Shannon K S Johnson
Its: Authorized Signatory
STATE OF CALIFORNIA
	 	 	)	 
	 
	 	)  SS
	COUNTY OF ORANGE
	 	 	)	 

On March 20, 2008, before me, P.C. Han, Notary Public, personally appeared Shannon K S Johnson
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is subscribed
to the within instrument and acknowledged to me that she executed the same in her authorized
capacity(ies), and that by her signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature /s/ Phil C. Han

This area for official notarial seal.

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

3

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