Document:

EX-10.68 PROMISSORY NOTE DATED 1-19-06

 

Exhibit 10.68

CVS - Madison

Loan No. 50-2854482

PROMISSORY NOTE

			
	$3,457,000.00
	 	January 19, 2006

     FOR VALUE RECEIVED, the undersigned, COLE CV MADISON MS, LLC, a Delaware limited liability
company (“Maker”), having an address at 2555 East Camelback Road, Suite 400, Phoenix, Arizona
85016, promises to pay to the order of WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking
association (“Payee”), at the office of Payee at Commercial Real Estate Services, 8739 Research
Drive URP – 4, NC 1075, Charlotte, North Carolina 28262, or at such other place as Payee may
designate to Maker in writing from time to time, the principal sum of THREE MILLION FOUR HUNDRED
FIFTY-SEVEN THOUSAND AND NO/100 DOLLARS ($3,457,000.00), together with interest on so much thereof
as is from time to time outstanding and unpaid, from the date of the advance of the principal
evidenced hereby and as allocated to Fixed Rate Tranche A and Floating Rate Tranche B (as each term
is hereinafter defined) for each such tranche, at the Note Rate (as hereinafter defined), together
with all other amounts due hereunder or under the other Loan Documents (as defined herein), in
lawful money of the United States of America, which shall at the time of payment be legal tender in
payment of all debts and dues, public and private.

ARTICLE I — TERMS AND CONDITIONS

     1.1 Definitions. The following terms, as used in this Note, shall have the following
meanings, which meanings shall be applicable equally to the singular and the plural of the terms
defined:

          (a) “Business Day” shall mean a day of the year on which banks are not required or authorized
to close in Charlotte, North Carolina.

          (b) “Determination Date” shall mean a date on which the LIBOR-Based Rate shall be selected as
the applicable interest rate in respect of Floating Rate Tranche B, which date shall be the day
that is two (2) London Business Days prior to the commencement of an Interest Period or, with
respect to the first Interest Period, the date the Loan shall be advanced by Payee.

          (c) “Extended Maturity Date” shall mean February 11, 2036.

          (d) “Fixed Rate Tranche A” shall mean Two Million Eight Hundred Nine Thousand and No/100
Dollars ($$2,809,000.00) of the aggregate amount of the Loan which shall bear interest as set forth
in Section 1.3 hereof.

          (e) “Floating Rate Tranche B” shall mean Six Hundred Forty-Eight Thousand and No/100 Dollars
($648,000.00) of the aggregate amount of the Loan which shall bear interest at the LIBOR-Based Rate
(as hereinafter defined).

          (f) “Interest Period” shall mean initially, the period commencing on the date hereof and
ending on and including the day of the tenth (10th) day of the calendar month following
the date of this Note, unless principal is advanced on the tenth (10th) of a month, in
which case the first Interest Period shall consist only such tenth (10th) day. Each
Interest Period thereafter shall commence on the eleventh (11th) day of each calendar
month during the term of this Note and shall end on and include the tenth (10th) day of
the next occurring calendar month. Interest shall accrue from the date on which funds are advanced
hereunder (regardless of the time of day) through and including the day on which funds are credited
pursuant to Section 1.4 hereof.

          (g) “LIBOR-Based Rate” shall mean (i) for the first Interest Period, an interest rate per
annum equal to six and forty-seven one-hundredths percent (6.47%) and (ii) for each succeeding
Interest Period until Floating Rate Tranche B is satisfied, an interest rate per annum equal at all
times to two hundred (200) basis points above the one-month LIBOR, in each case as determined by
Payee prior to the commencement of each Interest Period.

 

 

          (h) “LIBOR” shall mean with respect to each day during each Interest Period, the rate for U.S.
dollar deposits of that many months maturity as reported on Telerate page 3750 as of 11:00 a.m.,
London time, on the second London Business Day before the relevant Interest Period begins (or if
not so reported, then as determined by Payee from another recognized source or interbank
quotation), rounded up to the nearest one-eighth of one percent (1/8%).

          (i) “Loan” shall mean that certain loan made by Payee to Maker in respect of the Property
which is evidenced by this Note and secured by, among other things, the Security Instrument and all
other Loan Documents.

          (j) “Loan Documents” shall mean the Security Instrument, this Note and all other documents now
or hereafter evidencing, securing, guarantying, modifying or otherwise relating to the indebtedness
evidenced hereby.

          (k) “London Business Day” shall mean a day of the year on which dealings in United States
dollars are carried on in the London interbank market and banks are not required or authorized to
close in London or in New York, New York.

          (l) “Maturity Date” shall mean February 11, 2016.

          (m) “Monthly Payment Amount” shall mean the sum of (A) from and including the First Payment
Date through the Maturity Date, an amount equal to the interest payable under this Note on the
portion allocated as Fixed Rate Tranche A at the Fixed Interest Rate in the amounts for each such
Payment Date set forth on Annex 1 attached hereto and incorporated herein by this reference or as
provided by Payee to Maker in connection with the initial Fixed Interest Rate Interest Period, plus
(B) through and until Floating Rate Tranche B is satisfied, an amount equal to the interest payable
under this Note on the portion allocated as Floating Rate Tranche B at the LIBOR-Based Rate
pursuant to the provisions of Section 1.2 hereof. Annex 1 is for reference purposes only and any
payment incorrectly referenced thereon or omitted therefrom shall not limit or reduce Maker’s
obligations for actual amounts due under this Note in accordance with its payment terms, and Maker
agrees that Payee may substitute a replacement Annex 1 in the event the attached does not
accurately reflect Maker’s scheduled payment obligations.

          (n) “Optional Prepayment Date” shall mean February 11, 2016.

          (o) “Optional Prepayment Determination Date” shall mean December 11, 2015.

          (p) “Security Instrument” shall mean that certain mortgage, deed of trust or deed to secure
debt and security agreement from Maker for the benefit of Payee, dated of even date herewith,
covering property located in Madison County, Mississippi.

     Each of the capitalized terms not otherwise defined in this Note shall have the respective
meaning ascribed to it in the Security Instrument of even date herewith from Maker to Payee.

     1.2 LIBOR-Based Rate; Pay-Down Date. (a) From the date of the advance of the principal
evidenced hereby through the Pay-Down Date (as hereinafter defined) for Floating Rate Tranche B,
Floating Rate Tranche B shall bear interest at the LIBOR-Based Rate. The LIBOR-Based Rate shall
remain in effect, subject to the provisions hereof, from and including the first day of the
Interest Period to and excluding the last day of the Interest Period for which it is determined.

          (b) If requested by Payee, Maker shall immediately confirm the LIBOR-Based Rate and the
duration of the applicable Interest Period by acknowledging receipt of a written confirmation of
the LIBOR-Based Rate and Interest Period delivered by Payee to Maker. Only one Interest Period may
be in effect at any given time.

          (c) Without limiting the effect of any other provision of this Note, Maker shall pay to Payee
on the last day of each and every Interest Period, so long as and to the extent that Payee (or its
source of funds) may directly or indirectly be required to maintain reserves against “Eurocurrency
liabilities” under Federal Reserve

 

 

Regulation D (as at any time amended), additional interest (as determined by Payee and disclosed to
Maker) for each such Interest Period at an interest rate per annum equal, at all times during such
Interest Period for the principal balance of Floating Rate Tranche B, to the excess of (i) the rate
obtained by dividing LIBOR for such Interest Period by a percentage equal to 100% minus the reserve
percentage applicable during such Interest Period under regulations issued from time to time by the
Board of Governors of the Federal Reserve System (or if more than one such percentage is so
applicable, minus the daily average of such percentages for those days in such Interest Period
during which any such percentage shall be so applicable) for determining the maximum reserve
requirement (including, without limitation, any marginal reserve requirement) for Payee (or its
source of funds) in respect of liabilities or assets consisting of or including “Eurocurrency
liabilities” under Federal Reserve Regulation D (as at any time amended) having a term equal to
such Interest Period over (ii) LIBOR for such Interest Period. Terms used in Regulation D shall
have the same meanings when used herein. Each such determination made by Payee and each such
notification by Payee to Maker under this subparagraph of the amount of additional interest payable
hereunder shall be conclusive as to the matters set forth therein.

          (d) In addition to the payment of interest and fees as aforesaid, Maker shall, from time to
time, upon demand by Payee pay to Payee amounts as shall be sufficient to compensate Payee for (i)
any loss, cost, fee, breakage or other expense incurred or sustained directly or indirectly by
reason of the liquidation or reemployment of deposits or other funds acquired by Payee to fund or
maintain Floating Rate Tranche B during any Interest Period as a result of any prepayment of
Floating Rate Tranche B or any portion thereof or any attempt by Maker to rescind the selection of
the LIBOR-Based Rate as the applicable interest rate for Floating Rate Tranche B and (ii) any
increased costs incurred by Payee, by reason of:

     (x) taxes (or the withholding of amounts for taxes) of any nature whatsoever,
including, without limitation, income, excise and interest equalization taxes (other than
United States or state income taxes) as well as all levies, imports, duties, or fees whether
now in existence or as the result of a change in, or promulgation of, any treaty, statute or
regulation or interpretation thereof, or any directive, guideline or otherwise, by a central
bank or fiscal authority or any other entity (whether or not having the force of law) or a
change in the basis of, or time of payment of, such taxes and other amounts resulting
therefrom;

     (y) any reserve or special deposit requirements against or with respect to assets or
liabilities or deposits outstanding under LIBOR (including, without limitation, those
imposed under the Monetary Control Act of 1978) currently required by, or resulting from a
change in, or the promulgation of, such requirements by treaty, statute, regulation,
interpretation thereof, or any directive, guidelines, or otherwise by a central bank or
fiscal authority (whether or not having the force of law); and

     (z) any other costs resulting from compliance with treaties, statutes, regulations,
interpretations or any directives or guidelines or otherwise, promulgated by or of a central
bank or fiscal authority or other entity with similar authority (whether or not having the
force of law).

A certificate as to the amount of any such costs prepared by Payee, signed by an authorized officer
of Payee and submitted to Maker shall be conclusive as to the matters therein set forth.

     (e) The selection at any time of an interest rate based upon LIBOR shall be expressly
conditioned upon the existence of an adequate and fair means of determining LIBOR and the absence
of any legal prohibition against the charging of interest based on LIBOR.

     (f) On or prior to April 18, 2006 (the “Pay-Down Date”), Maker shall fully prepay the
principal balance of this Note allocated as Floating Rate Tranche B. Floating Rate Tranche B shall
not be deemed to have been paid and/or satisfied in full until all such additional costs, in
addition to the principal balance thereof and all interest thereon and all other sums due and
payable under the Loan Documents in regards to Floating Rate Tranche B, shall have been paid.

     1.3 Note Rate; Computation of Interest. The term “Note Rate” as used in this Note shall mean
(a) for Fixed Rate Tranche A, from the date of this Note through but not including the Optional
Prepayment Date, a rate per annum equal to five and three-fifths percent (5.60%) (the “Fixed
Interest Rate”), (b) for Floating Rate Tranche B, from the date of this Note through the Pay-Down
Date and satisfaction of Floating Rate Tranche B, a rate per annum

 

 

equal to the LIBOR-Based Rate, and (c) from the Optional Prepayment Date through and including the
date this Note is paid in full, a rate per annum equal to the greater of (i) the Fixed Interest
Rate plus two (2%) percent or (ii) the Treasury Constant Maturity Yield Index (as hereinafter
defined) plus two (2%) percent ((i) or (ii), as applicable, the “Revised Interest Rate”). Interest
shall be computed hereunder based on a 360-day year and based on the actual number of days elapsed
for any period in which interest is being calculated. For purposes of this Section 1.3, the term
“Treasury Constant Maturity Yield Index” shall mean the average yield for “This Week” as reported
by the Federal Reserve Board in Federal Statistical Release H.15 (519) published during the second
full week preceding the Optional Prepayment Date for instruments having a maturity coterminous with
the remaining term of this Note. If there is no Treasury Constant Maturity Yield Index for
instruments having a maturity coterminous with the remaining term of this Note, then the index
shall be equal to the weighted average yield to maturity of the Treasury Constant Maturity Yield
Indices with maturities next longer and shorter than such remaining average life to maturity,
calculated by averaging (and rounding upward to the nearest whole multiple of 1/100 of 1% per
annum, if the average is not such a multiple) the yields of the relevant Treasury Constant Maturity
Yield Indices (rounded, if necessary, to the nearest 1/100 of 1% with any figure of 1/200 of 1% or
above rounded upward). If such Release is not available or no longer published, Payee may refer to
another recognized source of financial market information.

     1.4 Payment of Principal and Interest. Payments in federal funds immediately available at the
place designated for payment received by Payee prior to 2:00 p.m. local time on a day on which
Payee is open for business at said place of payment shall be credited prior to close of business,
while other payments, at the option of Payee, may not be credited until immediately available to
Payee in federal funds at the place designated for payment prior to 2:00 p.m. local time on a day
on which Payee is open for business. Interest only shall be payable in consecutive monthly
installments of the Monthly Payment Amount, beginning on March 11, 2006 (the “First Payment Date”),
and continuing on the eleventh (11th) day of each and every calendar month thereafter
(each, a “Payment Date”). On the Maturity Date or the Optional Prepayment Date, the entire
outstanding principal balance hereof, together with all accrued but unpaid interest thereon, shall
be due and payable in full provided, however, that in the event that such amounts are not paid on
such date, the Maturity Date shall be extended to the Extended Maturity Date. In computing the
number of days during which interest accrues, the day on which funds are initially advanced shall
be included regardless of the time of day such advance is made, and the day on which funds are
repaid shall be included unless repayment is credited prior to close of business. Payments in
federal funds immediately available in the place designated for payment received by Payee prior to
2:00 p.m. local time on a Business Day at said place of payment shall be credited prior to close of
business, while other payments, at the option of Payee, may not be credited until immediately
available to Payee in federal funds in the place designated for payment prior to 2:00 p.m. local
time at said place of payment on a Business Day.

     1.5 Application of Payments. So long as no Event of Default (as hereinafter defined) exists
hereunder or under any other Loan Document, each such monthly installment shall be applied, prior
to the Optional Prepayment Date, first, to any amounts hereafter advanced by Payee hereunder or
under any other Loan Document, second, to any late fees and other amounts payable to Payee, third,
to the payment of accrued interest and last to reduction of principal, and from and after the
Optional Prepayment Date, as provided in Section 2.2 of this Note.

     1.6 Payment of “Short Interest”. If the advance of the principal amount evidenced by this
Note is made on a date on or after the first (1st) day of a calendar month and prior to
the eleventh (11th) day of a calendar month, Maker shall pay to Payee contemporaneously
with the execution hereof interest at the Note Rate for a period from the date hereof through and
including the tenth (10th) day of this calendar month. If the advance of the principal
amount evidenced by this Note is made on a date after the eleventh (11th) day of a
calendar month and prior to or on the last day of a calendar month, Maker shall pay to Payee
contemporaneously with the execution hereof interest at the Note Rate for a period from the date
hereof through and including the tenth (10th) day of the immediately succeeding calendar
month.

     1.7 Prepayment; Defeasance.

     (a) This Note may not be prepaid, in whole or in part (except as otherwise specifically
provided herein), at any time prior to the Optional Prepayment Date. In the event that Maker
wishes to have the Security Property (as hereinafter defined) released from the lien of the
Security Instrument prior to the Optional Prepayment Date, Maker’s sole option shall be a
Defeasance (as hereinafter defined) upon satisfaction of the terms and conditions set forth in
Section 1.7(d) hereof. This Note may be prepaid in whole but not in part without premium or

 

 

penalty on any of the three (3) Payment Dates occurring immediately prior to the Maturity Date
provided (i) written notice of such prepayment is received by Payee not more than ninety (90) days
and not less than thirty (30) days prior to the date of such prepayment, and (ii) such prepayment
is accompanied by all interest accrued hereunder through and including the date of such prepayment
and all other sums due hereunder or under the other Loan Documents. If, upon any such permitted
prepayment on any of the three (3) Payment Dates occurring immediately prior to the Maturity Date,
the aforesaid prior written notice has not been timely received by Payee, there shall be due a
prepayment fee equal to, an amount equal to the lesser of (i) thirty (30) days’ interest computed
at the Note Rate on the outstanding principal balance of this Note so prepaid and (ii) interest
computed at the Note Rate on the outstanding principal balance of this Note so prepaid that would
have been payable for the period from, and including, the date of prepayment through the Maturity
Date of this Note as though such prepayment had not occurred.

     (b) If, prior to the fourth (4th) anniversary of the First Payment Date (the
“Lock-out Expiration Date”), the indebtedness evidenced by this Note shall have been declared due
and payable by Payee pursuant to Article III hereof or the provisions of any other Loan Document
due to a default by Maker, then, in addition to the indebtedness evidenced by this Note being
immediately due and payable, there shall also then be immediately due and payable a sum equal to
the interest which would have accrued on the principal balance of this Note at the Note Rate from
the date of such acceleration to the Lock-out Expiration Date, together with a prepayment fee in an
amount equal to the Yield Maintenance Premium (as hereinafter defined) based on the entire
indebtedness on the date of such acceleration. If such acceleration is on or following the
Lock-out Expiration Date, the Yield Maintenance Premium shall also then be immediately due and
payable as though Maker were prepaying the entire indebtedness on the date of such acceleration.
In addition to the amounts described in the two preceding sentences, in the event of any such
acceleration or tender of payment of such indebtedness occurs or is made on or prior to the first
(1st) anniversary of the date of this Note, there shall also then be immediately due and payable an
additional prepayment fee of three percent (3%) of the principal balance of this Note. The term
“Yield Maintenance Premium” shall mean an amount equal to the greater of (A) two percent (2.0%) of
the principal amount being prepaid, and (B) the present value of a series of payments each equal to
the Payment Differential (as hereinafter defined) and payable on each Payment Date over the
remaining original term of this Note and on the Maturity Date, discounted at the Reinvestment Yield
(as hereinafter defined) for the number of months remaining as of the date of such prepayment to
each such Payment Date and the Maturity Date. The term “Payment Differential” shall mean an amount
equal to (i) the Note Rate less the Reinvestment Yield, divided by (ii) twelve (12) and multiplied
by (iii) the principal sum outstanding under this Note after application of the constant monthly
payment due under this Note on the date of such prepayment, provided that the Payment Differential
shall in no event be less than zero. The term “Reinvestment Yield” shall mean an amount equal to
the lesser of (i) the yield on the U.S. Treasury issue (primary issue) with a maturity date
closest to the Maturity Date, or (ii) the yield on the U.S. Treasury issue (primary issue) with a
term equal to the remaining average life of the indebtedness evidenced by this Note, with each such
yield being based on the bid price for such issue as published in the Wall Street Journal on the
date that is fourteen (14) days prior to the date of such prepayment set forth in the notice of
prepayment (or, if such bid price is not published on that date, the next preceding date on which
such bid price is so published) and converted to a monthly compounded nominal yield. In the event
that any prepayment fee is due hereunder, Payee shall deliver to Maker a statement setting forth
the amount and determination of the prepayment fee, and, provided that Payee shall have in good
faith applied the formula described above, Maker shall not have the right to challenge the
calculation or the method of calculation set forth in any such statement in the absence of manifest
error, which calculation may be made by Payee on any day during the fifteen (15) day period
preceding the date of such prepayment. Payee shall not be obligated or required to have actually
reinvested the prepaid principal balance at the Reinvestment Yield or otherwise as a condition to
receiving the prepayment fee.

     (c) Partial prepayments of this Note shall not be permitted, except for (i) partial
prepayments resulting from Payee’s election to apply insurance or condemnation proceeds to reduce
the outstanding principal balance of this Note as provided in the Security Instrument, in which
event no prepayment fee or premium shall be due unless, at the time of either Payee’s receipt of
such proceeds or the application of such proceeds to the outstanding principal balance of this
Note, an Event of Default shall have occurred, which Event of Default is unrelated to the
applicable casualty or condemnation, in which event the applicable prepayment fee or premium shall
be due and payable based upon the amount of the prepayment or (ii) any partial prepayment required
on or prior to the Pay-Down Date pursuant to Section 1.2(f) above, in which event no prepayment fee
or premium shall be due. No notice of prepayment shall be required under the circumstances
specified in subclause (i) of the preceding sentence. No principal amount repaid may be

 

 

reborrowed. Any such partial prepayments of principal under subclause (i) above shall be applied
to the unpaid principal balance evidenced hereby but such application shall not reduce the amount
of the fixed monthly installments required to be paid pursuant to Section 1.4 above. Except as
otherwise expressly provided herein, the prepayment fees provided above shall be due, to the extent
permitted by applicable law, under any and all circumstances where all or any portion of this Note
is paid prior to the Maturity Date, whether such prepayment is voluntary or involuntary, including,
without limitation, if such prepayment results from Payee’s exercise of its rights upon Maker’s
default and acceleration of the Maturity Date of this Note (irrespective of whether foreclosure
proceedings have been commenced), and shall be in addition to any other sums due hereunder or under
any of the other Loan Documents. No tender of a prepayment of this Note with respect to which a
prepayment fee is due shall be effective unless such prepayment is accompanied by the applicable
prepayment fee.

(d) (i) On any Payment Date on or after the later to occur of (x) the Lock-out Expiration
Date, and (y) the day immediately following the date which is two (2) years after the
“startup day,” within the meaning of Section 860G(a)(9) of the Internal Revenue Code of
1986, as amended from time to time or any successor statute (the “Code”), of a “real estate
mortgage investment conduit,” within the meaning of Section 860D of the Code, that holds
this Note, and provided no Event of Default has occurred hereunder or under any of the other
Loan Documents, at Maker’s option, Payee shall cause the release of the Security Property
from the lien of the Security Instrument and the other Loan Documents (a “Defeasance”) upon
the satisfaction of the following conditions:

               (A) Maker shall give not more than ninety (90) days’ or less than sixty (60)
days’ prior written notice to Payee specifying the date Maker intends for the
Defeasance to be consummated (the “Release Date”), which date shall be a Payment
Date.

               (B) All accrued and unpaid interest and all other sums due under this Note and
under the other Loan Documents up to and including the Release Date shall be paid in
full on or prior to the Release Date.

               (C) Maker shall deliver to Payee on or prior to the Release Date:

          (1) a sum of money in immediately available funds (the “Defeasance
Deposit”), equal to the outstanding principal balance of this Note plus an
amount, if any, which together with the outstanding principal balance of
this Note, shall be sufficient to enable Payee to purchase, through means
and sources customarily employed and available to Payee, for the account of
Maker, direct, non-callable obligations of the United States of America that
provide for payments prior, but as close as possible, to all successive
monthly Payment Dates occurring after the Release Date and to the Maturity
Date, with each such payment being equal to or greater than the amount of
the corresponding installment of principal and/or interest required to be
paid under this Note (including, but not limited to, all amounts due on the
Maturity Date) for the balance of the term hereof (the “Defeasance
Collateral”), each of which shall be duly endorsed by the holder thereof as
directed by Payee or accompanied by a written instrument of transfer in form
and substance satisfactory to Payee in its sole discretion (including,
without limitation, such instruments as may be required by the depository
institution holding such securities or the issuer thereof, as the case may
be, to effectuate book-entry transfers and pledges through the book-entry
facilities of such institution) in order to perfect upon the delivery of the
Defeasance Security Agreement (as hereinafter defined) the first priority
security interest in the Defeasance Collateral in favor of Payee in
conformity with all applicable state and federal laws governing granting of
such security interests;

          (2) a pledge and security agreement, in form and substance satisfactory
to a prudent lender, creating a first priority security interest in favor of
Payee in the Defeasance Collateral (the “Defeasance Security Agreement”),
which shall provide, among other things, that any excess received by Payee
from the Defeasance Collateral over the amounts payable by Maker hereunder
shall be refunded to Maker promptly after each monthly Payment Date;

 

 

          (3) a certificate of Maker certifying that all of the requirements set
forth in this Section 1.7(d)(i) have been satisfied;

          (4) one or more opinions of counsel for Maker in form and substance and
delivered by counsel which would be satisfactory to a prudent lender
stating, among other things, that (i) Payee has a perfected first priority
security interest in the Defeasance Collateral and that the Defeasance
Security Agreement is enforceable against Maker in accordance with its
terms, (ii) in the event of a bankruptcy proceeding or similar occurrence
with respect to Maker, none of the Defeasance Collateral nor any proceeds
thereof will be property of Maker’s estate under Section 541 of the U.S.
Bankruptcy Code or any similar statute and the grant of security interest
therein to Payee shall not constitute an avoidable preference under Section
547 of the U.S. Bankruptcy Code or applicable state law, (iii) the release
of the lien of the Security Instrument and the pledge of Defeasance
Collateral will not directly or indirectly result in or cause any REMIC
Trust that then holds this Note to fail to maintain its status as a REMIC
Trust and (iv) the defeasance will not cause any REMIC Trust to be an
“investment company” under the Investment Company Act of 1940;

          (5) evidence in writing from the applicable rating agencies to the
effect that the collateral substitution will not result in a downgrading,
withdrawal or qualification of the respective ratings in effect immediately
prior to such defeasance event for any securities issued in connection with
the securitization which are then outstanding;

          (6) a certificate in form and scope acceptable to Payee in its sole
discretion from an acceptable accountant certifying that the Defeasance
Collateral will generate amounts sufficient to make all payments of
principal and interest due under this Note (including the scheduled
outstanding principal balance of the Loan due on the Maturity Date);

          (7) Maker and any guarantor or indemnitor of Maker’s obligations under
the Loan Documents for which Maker has personal liability executes and
delivers to Payee such documents and agreements as Payee shall reasonably
require to evidence and effectuate the ratification of such personal
liability and guaranty or indemnity, respectively;

          (8) such other certificates, documents or instruments as Payee may
reasonably require; and

          (9) payment of all fees, costs, expenses and charges incurred by Payee
in connection with the Defeasance of the Security Property and the purchase
of the Defeasance Collateral, including, without limitation, all legal fees
and costs and expenses incurred by Payee or its agents in connection with
release of the Security Property, review of the proposed Defeasance
Collateral and preparation of the Defeasance Security Agreement and related
documentation, any revenue, documentary, stamp, intangible or other taxes,
charges or fees due in connection with transfer of the Note, assumption of
the Note, or substitution of collateral for the Security Property shall be
paid on or before the Release Date. Without limiting Maker’s obligations
with respect thereto, Payee shall be entitled to deduct all such fees,
costs, expenses and charges from the Defeasance Deposit to the extent of any
portion of the Defeasance Deposit which exceeds the amount necessary to
purchase the Defeasance Collateral.

               (D) In connection with the Defeasance Deposit, Maker hereby authorizes and
directs Payee using the means and sources customarily employed and available to
Payee to use the Defeasance Deposit to purchase for the account of Maker the
Defeasance Collateral. Furthermore, the Defeasance Collateral shall
be arranged such that payments received from such Defeasance Collateral shall
be paid directly to Payee to be applied on account of the indebtedness

 

 

of this Note. Any part of the Defeasance Deposit in excess of the amount
necessary to purchase the Defeasance Collateral and to pay the other and related
costs Maker is obligated to pay under this Section 1.7 shall be refunded to Maker.

     (ii) Upon compliance with the requirements of Section 1.7(d)(i), the Security Property
shall be released from the lien of the Security Instrument and the other Loan Documents, and
the Defeasance Collateral shall constitute collateral which shall secure this Note and all
other obligations under the Loan Documents. Payee will, at Maker’s expense, execute and
deliver any agreements reasonably requested by Maker to release the lien of the Security
Instrument from the Security Property.

     (iii) Upon the release of the Security Property in accordance with this Section 1.7(d),
Maker shall assign all its obligations and rights under this Note, together with the pledged
Defeasance Collateral, to a newly created successor entity which complies with the terms of
Section 1.33 of the Security Instrument designated by Maker and approved by Payee in its
sole discretion. Such successor entity shall execute an assumption agreement in form and
substance satisfactory to Payee in its sole discretion pursuant to which it shall assume
Maker’s obligations under this Note and the Defeasance Security Agreement. As conditions to
such assignment and assumption, Maker shall (x) deliver to Payee an opinion of counsel in
form and substance and delivered by counsel satisfactory to a prudent lender stating, among
other things, that such assumption agreement is enforceable against Maker and such successor
entity in accordance with its terms and that this Note and the Defeasance Security
Agreement, as so assumed, are enforceable against such successor entity in accordance with
their respective terms, and (y) pay all costs and expenses (including, but not limited to,
legal fees) incurred by Payee or its agents in connection with such assignment and
assumption (including, without limitation, the review of the proposed transferee and the
preparation of the assumption agreement and related documentation). Upon such assumption,
Maker shall be relieved of its obligations hereunder, under the other Loan Documents other
than as specified in Section 1.7(d)(i)(C)(7) above and under the Defeasance Security
Agreement.

     1.8 Security. The indebtedness evidenced by this Note and the obligations created hereby are
secured by, among other things, the Security Instrument. All of the terms and provisions of the
Loan Documents are incorporated herein by reference. Some of the Loan Documents are to be filed
for record on or about the date hereof in the appropriate public records.

ARTICLE II — OPTIONAL PREPAYMENT DATE PROVISIONS

     2.1 Optional Prepayment Determination Date. The following subsections shall apply from and
after the Optional Prepayment Determination Date:

     (a) [Reserved].

     (b) For the calendar year in which the Optional Prepayment Determination Date occurs and for
each calendar year thereafter, Maker shall submit to Payee for Payee’s written approval an annual
budget (an “Annual Budget”) not later than (i) the Optional Prepayment Determination Date for the
calendar year in which the Optional Prepayment Determination occurs and (ii) sixty (60) days prior
to the commencement of each calendar year thereafter, in form satisfactory to Payee setting forth
in reasonable detail budgeted monthly operating income and monthly operating capital and other
expenses for the Mortgaged Property. Each Annual Budget shall contain, among other things,
limitations on management fees, third party service fees and other expenses as Maker may reasonably
determine. Payee shall have the right to approve such Annual Budget and in the event that Payee
objects to the proposed Annual Budget submitted by Maker, Payee shall advise Maker of such
objections within fifteen (15) days after receipt thereof (and deliver to Maker a reasonably
detailed description of such objections) and Maker shall, within three (3) days after receipt of
notice of any such objections, revise such Annual Budget and resubmit the same to Payee. Payee
shall advise Maker of any objections to such revised Annual Budget within ten (10) days after
receipt thereof (and deliver to Maker a reasonably detailed description of such objections) and
Maker shall revise the same in accordance with the process described in this subsection until Payee
approves an Annual Budget, provided, however, that if Payee shall not advise Maker of its
objections to any proposed Annual Budget within the applicable time period set forth in this
subsection, then such proposed Annual Budget shall be deemed approved by Payee. Each such Annual
Budget approved by Payee in accordance with terms hereof shall hereinafter be referred to as an
“Approved Annual Budget.” Until such time that

 

 

Payee approves a proposed Annual Budget, the most recently Approved Annual Budget shall apply;
provided, that such Approved Annual Budget shall be adjusted to reflect actual increases in real
estate taxes, insurance premiums and utilities expenses.

     (c) In the event that Maker must incur an extraordinary operating expense or capital expense
not set forth in the Annual Budget (an “Extraordinary Expense”), then Maker shall promptly deliver
to Payee a reasonably detailed explanation of such proposed Extraordinary Expense for Payee’s
approval.

     (d) For the purposes of this Note, “Cash Expenses” shall mean, for any period, the operating
expenses for the operation and maintenance of the Mortgaged Property as set forth in an Approved
Annual Budget to the extent that such expenses are actually incurred by Maker excluding payments
into the Impound Account and expenses for which Maker shall be reimbursed from, or which shall be
paid for out of, any such account or reserve.

     (e) Notwithstanding the other provisions of this Section 2.1, in the event that, prior to the
Optional Prepayment Determination Date, Maker delivers to Payee either (i) a written commitment
(the “Commitment”) for the refinancing of the loan evidenced by this Note from a Qualified
Institutional Lender (as hereinafter defined), which reasonably provides for the consummation of
such refinance prior to the Optional Prepayment Date or (ii) other evidence in form and substance
satisfactory to Payee in its sole determination of Maker’s ability to refinance the loan evidenced
by this Note prior to the Optional Prepayment Date, then, solely in either such event, the terms of
Section 2.1(a), (b), (c) and (d) of this Note shall be inoperative, provided, however, that upon
(x) the failure of such refinance to be consummated in accordance with the terms of the Commitment
or such other evidence, as applicable, (y) the termination of the Commitment for any reason or (z)
any adverse change in circumstances with respect to Maker or any principals of Maker, the Mortgaged
Property, the proposed lender or otherwise, as determined by Payee in its sole determination,
which, in Payee’s reasonable judgment, significantly decreases the likelihood of such refinance
being consummated prior to the Optional Prepayment Date, the terms of Section 2.1(a), (b), (c) and
(d) of this Note shall immediately become operative and Maker shall immediately comply with any of
the terms thereof which, except for the operation of this subsection (e), Maker would theretofore
have been obligated to comply. “Qualified Institutional Lender” shall mean a financial institution
or other lender with a long term credit rating which is not less than investment grade. The
determination of whether the conditions set forth in clause (i) or (ii) above, shall be made and
notice of such determination shall be delivered to Maker, within ten (10) business days following
Payee’s receipt of the items set forth in such clauses.

     2.2 Failure to Prepay On or Before Optional Prepayment Date. In the event that Maker does not
prepay the entire principal balance of this Note and any other amounts outstanding under this Note
or any of the other Loan Documents on or prior to the Optional Prepayment Date, the provisions of
Section 2.1(b), (c) and (d) as set forth above shall remain in full force and effect, and the
following subsections also shall apply:

     (a) From and after the Optional Prepayment Date, interest shall accrue on the unpaid principal
balance from time to time outstanding under this Note at the Revised Interest Rate. Interest
accrued at the Revised Interest Rate and not paid pursuant to this Section 2.2 shall be deferred
and added to the principal balance of this Note and shall earn interest at the Revised Interest
Rate to the extent permitted by applicable law (such accrued interest is hereinafter referred to as
“Accrued Interest”). All of the unpaid principal balance of this Note, including, without
limitation, any Accrued Interest, shall be due and payable on the Extended Maturity Date.

     (b) Maker shall be obligated to pay, and Payee shall collect from the Rent Account (as defined
in the Security Instrument) to the extent of funds on deposit in such account, on the Optional
Prepayment Date and on the eleventh (11th) day of each calendar month thereafter to and including
the Extended Maturity Date the following payments from Rents (as defined in the Security
Instrument) received on or before such day in the listed order of priority:

     (i) First, the payment of the Monthly Payment Amount with interest computed at the
Fixed Interest Rate;

     (ii) Second, payments to the Impound Account (as defined in the Security Instrument) in
accordance with the terms and conditions of the Security Instrument;

 

 

     (iii) [Reserved];

     (iv) Fourth, payments for monthly Cash Expenses, less management fees payable to
affiliates of Maker, pursuant to the terms and conditions of the related Approved Annual
Budget;

     (v) Fifth, payment for Extraordinary Expenses approved by Payee, if any;

     (vi) Sixth, payments to Payee of the balance of the funds then on deposit in the Rent
Account to be applied to (x) any other amounts due under the Loan Documents, (y) Accrued
Interest and (z) the reduction of the outstanding principal balance of this Note until such
principal balance is paid in full in whatever proportion and priority as Payee may
determine.

     (c) Nothing in this Article II shall limit, reduce or otherwise affect Maker’s obligations to
make payments of the Monthly Payment Amount (including interest on the Note as provided in Section
1.3 hereof) payments to the Impound Account and payments of other amounts due hereunder and under
the other Loan Documents, whether or not Rents (as defined in the Security Instrument) are
available to make such payments.

ARTICLE III — DEFAULT

     3.1 Events of Default. It is hereby expressly agreed that should any default occur in the
payment of principal or interest as stipulated above and such payment is not made on the date such
payment is due, or should any other default not cured within any applicable grace or notice period
occur under any other Loan Document, then an event of default (an “Event of Default”) shall exist
hereunder, and in such event the indebtedness evidenced hereby, including all sums advanced or
accrued hereunder or under any other Loan Document, and all unpaid interest accrued thereon, shall,
at the option of Payee and without notice to Maker, at once become due and payable and may be
collected forthwith, whether or not there has been a prior demand for payment and regardless of the
stipulated date of maturity.

     3.2 Late Charges. In the event that any payment is not received by Payee within fifteen (15)
days after the date when due, then, in addition to any default interest payments due hereunder,
Maker shall also pay to Payee a late charge in an amount equal to four percent (4%) of the amount
of such overdue payment.

     3.3 Default Interest Rate. So long as any Event of Default exists hereunder, regardless of
whether or not there has been an acceleration of the indebtedness evidenced hereby, and at all
times after maturity of the indebtedness evidenced hereby (whether by acceleration or otherwise),
interest shall accrue on the outstanding principal balance of this Note, from the date due until
the date credited, at a rate per annum equal to four percent (4%) in excess of the Note Rate, or,
if such increased rate of interest may not be collected under applicable law, then at the maximum
rate of interest, if any, which may be collected from Maker under applicable law (the “Default
Interest Rate”), and such default interest shall be immediately due and payable.

     3.4 Maker’s Agreements. Maker acknowledges that it would be extremely difficult or
impracticable to determine Payee’s actual damages resulting from any late payment or default, and
such late charges and default interest are reasonable estimates of those damages and do not
constitute a penalty. The remedies of Payee in this Note or in the Loan Documents, or at law or in
equity, shall be cumulative and concurrent, and may be pursued singly, successively or together, in
Payee’s discretion.

     3.5 Maker to Pay Costs. In the event that this Note, or any part hereof, is collected by or
through an attorney-at-law, Maker agrees to pay all costs of collection, including, but not limited
to, reasonable attorneys’ fees.

     3.6 Exculpation. Notwithstanding anything in this Note or the Loan Documents to the contrary,
but subject to the qualifications hereinbelow set forth, Payee agrees that:

     (a) Maker shall be liable upon the indebtedness evidenced hereby and for the other obligations
arising under the Loan Documents to the full extent (but only to the extent) of the security
therefor, the same being all properties (whether real or personal), rights, estates and interests
now or at any time hereafter securing the payment of this Note and/or the other obligations of
Maker under the Loan Documents (collectively, the “Security Property”);

 

 

     (b) if a default occurs in the timely and proper payment of all or any part of such
indebtedness evidenced hereby or in the timely and proper performance of the other obligations of
Maker under the Loan Documents, any judicial proceedings brought by Payee against Maker shall be
limited to the preservation, enforcement and foreclosure, or any thereof, of the liens, security
titles, estates, assignments, rights and security interests now or at any time hereafter securing
the payment of this Note and/or the other obligations of Maker under the Loan Documents, and no
attachment, execution or other writ of process shall be sought, issued or levied upon any assets,
properties or funds of Maker other than the Security Property, except with respect to the liability
described below in this section; and

          (c) in the event of a foreclosure of such liens, security titles, estates, assignments, rights
or security interests securing the payment of this Note and/or the other obligations of Maker under
the Loan Documents, no judgment for any deficiency upon the indebtedness evidenced hereby shall be
sought or obtained by Payee against Maker, except with respect to the liability described below in
this section; provided, however, that, notwithstanding the foregoing provisions of this section,
Maker shall be fully and personally liable and subject to legal action (i) for proceeds paid under
any insurance policies (or paid as a result of any other claim or cause of action against any
person or entity) by reason of damage, loss or destruction to all or any portion of the Security
Property, to the full extent of such proceeds not previously delivered to Payee, but which, under
the terms of the Loan Documents, should have been delivered to Payee, (ii) for proceeds or awards
resulting from the condemnation or other taking in lieu of condemnation of all or any portion of
the Security Property, to the full extent of such proceeds or awards not previously delivered to
Payee, but which, under the terms of the Loan Documents, should have been delivered to Payee, (iii)
for all tenant security deposits or other refundable deposits paid to or held by Maker or any other
person or entity in connection with leases of all or any portion of the Security Property which are
not applied in accordance with the terms of the applicable lease or other agreement, (iv) for rent
and other payments received from tenants under leases of all or any portion of the Security
Property paid more than one (1) month in advance, (v) for rents, issues, profits and revenues of
all or any portion of the Security Property received or applicable to a period after the occurrence
of any Event of Default hereunder or under the Loan Documents, which are not either applied to the
ordinary and necessary expenses of owning and operating the Security Property or paid to Payee,
(vi) for waste committed on the Security Property, damage to the Security Property as a result of
the intentional misconduct or gross negligence of Maker or any of its principals, officers, general
partners or members, any guarantor, any indemnitor, or any agent or employee of any such person, or
any removal of all or any portion of the Security Property in violation of the terms of the Loan
Documents, to the full extent of the losses or damages incurred by Payee on account of such
occurrence, (vii) for failure to pay any valid taxes, assessments, mechanic’s liens, materialmen’s
liens or other liens which could create liens on any portion of the Security Property which would
be superior to the lien or security title of the Security Instrument or the other Loan Documents,
to the full extent of the amount claimed by any such lien claimant except, with respect to any such
taxes or assessments, to the extent that funds have been deposited with Payee pursuant to the terms
of the Security Instrument specifically for the applicable taxes or assessments and not applied by
Payee to pay such taxes and assessments, (viii) for all obligations and indemnities of Maker under
the Loan Documents relating to hazardous or toxic substances or radon or compliance with
environmental laws and regulations to the full extent of any losses or damages (including, but not
limited to, those resulting from diminution in value of any Security Property) incurred by Payee
and/or any of its affiliates as a result of the existence of such hazardous or toxic substances or
radon or failure to comply with environmental laws or regulations and (ix) for fraud, material
misrepresentation or failure to disclose a material fact, any untrue statement of a material fact
or omission to state a material fact in the written materials and/or information provided to Payee
or any of its affiliates by or on behalf of Maker or any of its affiliates, principals, officers,
general partners or members, any guarantor, any indemnitor or any agent, employee or other person
authorized or apparently authorized to make statements, representations or disclosures on behalf of
Maker, any affiliate, principal, officer, general partner or member of Maker, any guarantor or any
indemnitor, to the full extent of any losses, damages and expenses of Payee and/or any of its
affiliates on account thereof.

     References herein to particular sections of the Loan Documents shall be deemed references to
such sections as affected by other provisions of the Loan Documents relating thereto. Nothing
contained in this section shall (1) be deemed to be a release or impairment of the indebtedness
evidenced by this Note or the other obligations of Maker under the Loan Documents or the lien of
the Loan Documents upon the Security Property, or (2) preclude Payee from foreclosing the Loan
Documents in case of any default or from enforcing any of the other rights of Payee except as
stated in this section, or (3) limit or impair in any way whatsoever (A) any Indemnity and Guaranty
Agreements (the “Indemnity Agreements”) or (B) the Environmental Indemnity Agreement (the
“Environmental Indemnity Agreement”), executed and delivered in connection with the indebtedness
evidenced by this Note or release, relieve, reduce, waive or

 

 

impair in any way whatsoever, any obligation of any party to the Indemnity Agreements or the
Environmental Indemnity Agreement.

     Notwithstanding the foregoing, the agreement of Payee not to pursue recourse liability as set
forth in subsection (c) above SHALL BECOME NULL AND VOID and shall be of no further force and
effect (i) in the event of a default by Maker or Indemnitor (as defined in the Security Instrument)
of any of the covenants set forth in Section 1.13 or Section 1.33 of the Security Instrument, or
(ii) if the Security Property or any part thereof shall become an asset in (A) a voluntary
bankruptcy or insolvency proceeding of Maker, or (B) an involuntary bankruptcy or insolvency
proceeding of Maker which is not dismissed within sixty (60) days of filing.

     Notwithstanding anything to the contrary in this Note, the Security Instrument or any of the
other Loan Documents, Payee shall not be deemed to have waived any right which Payee may have under
Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a
claim for the full amount of the indebtedness evidenced hereby or secured by the Security
Instrument or any of the other Loan Documents or to require that all collateral shall continue to
secure all of the indebtedness owing to Payee in accordance with this Note, the Security Instrument
and the other Loan Documents.

ARTICLE IV — GENERAL CONDITIONS

     4.1 No Waiver; Amendment. No failure to accelerate the indebtedness evidenced hereby by
reason of default hereunder, acceptance of a partial or past due payment, or indulgences granted
from time to time shall be construed (i) as a novation of this Note or as a reinstatement of the
indebtedness evidenced hereby or as a waiver of such right of acceleration or of the right of Payee
thereafter to insist upon strict compliance with the terms of this Note, or (ii) to prevent the
exercise of such right of acceleration or any other right granted hereunder or by any applicable
laws; and Maker hereby expressly waives the benefit of any statute or rule of law or equity now
provided, or which may hereafter be provided, which would produce a result contrary to or in
conflict with the foregoing. No extension of the time for the payment of this Note or any
installment due hereunder made by agreement with any person now or hereafter liable for the payment
of this Note shall operate to release, discharge, modify, change or affect the original liability
of Maker under this Note, either in whole or in part, unless Payee agrees otherwise in writing.
This Note may not be changed orally, but only by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification or discharge is sought.

     4.2 Waivers. Presentment for payment, demand, protest and notice of demand, protest and
nonpayment and all other notices are hereby waived by Maker. Maker hereby further waives and
renounces, to the fullest extent permitted by law, all rights to the benefits of any moratorium,
reinstatement, marshaling, forbearance, valuation, stay, extension, redemption, appraisement,
exemption and homestead now or hereafter provided by the Constitution and laws of the United States
of America and of each state thereof, both as to itself and in and to all of its property, real and
personal, against the enforcement and collection of the obligations evidenced by this Note or the
other Loan Documents.

     4.3 Limit of Validity. The provisions of this Note and of all agreements between Maker and
Payee, whether now existing or hereafter arising and whether written or oral, including, but not
limited to, the Loan Documents, are hereby expressly limited so that in no contingency or event
whatsoever, whether by reason of demand or acceleration of the maturity of this Note or otherwise,
shall the amount contracted for, charged, taken, reserved, paid or agreed to be paid (“Interest”)
to Payee for the use, forbearance or detention of the money loaned under this Note exceed the
maximum amount permissible under applicable law. If, from any circumstance whatsoever, performance
or fulfillment of any provision hereof or of any agreement between Maker and Payee shall, at the
time performance or fulfillment of such provision shall be due, exceed the limit for Interest
prescribed by law or otherwise transcend the limit of validity prescribed by applicable law, then,
ipso facto, the obligation to be performed or fulfilled shall be reduced to such limit, and if,
from any circumstance whatsoever, Payee shall ever receive anything of value deemed Interest by
applicable law in excess of the maximum lawful amount, an amount equal to any excessive Interest
shall be applied to the reduction of the principal balance owing under this Note in the inverse
order of its maturity (whether or not then due), in which event no prepayment fee or premium shall
be due, or, at the option of Payee, be paid over to Maker, and not to the payment of Interest. All
Interest (including any amounts or payments judicially or otherwise under the law deemed to be
Interest) contracted for, charged, taken, reserved, paid or agreed to be paid to Payee shall, to
the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the
full term of this Note, including any extensions and renewals hereof until payment in full of the
principal balance of this Note so that the Interest thereon for such full term

 

 

will not exceed at any time the maximum amount permitted by applicable law. To the extent United
States federal law permits a greater amount of interest than is permitted under the law of the
State in which the Security Property is located, Payee will rely on United States federal law for
the purpose of determining the maximum amount permitted by applicable law. Additionally, to the
extent permitted by applicable law now or hereafter in effect, Payee may, at its option and from
time to time, implement any other method of computing the maximum lawful rate under the law of the
State in which the Security Property is located or under other applicable law by giving notice, if
required, to Maker as provided by applicable law now or hereafter in effect. This Section 4.3 will
control all agreements between Maker and Payee.

     4.4 Use of Funds. Maker hereby warrants, represents and covenants that no funds disbursed
hereunder shall be used for personal, family or household purposes.

     4.5 Unconditional Payment. Maker is and shall be obligated to pay principal, interest and any
and all other amounts which become payable hereunder or under the other Loan Documents absolutely
and unconditionally and without any abatement, postponement, diminution or deduction and without
any reduction for counterclaim or setoff. In the event that at any time any payment received by
Payee hereunder shall be deemed by a court of competent jurisdiction to have been a voidable
preference or fraudulent conveyance under any bankruptcy, insolvency or other debtor relief law,
then the obligation to make such payment shall survive any cancellation or satisfaction of this
Note or return thereof to Maker and shall not be discharged or satisfied with any prior payment
thereof or cancellation of this Note, but shall remain a valid and binding obligation enforceable
in accordance with the terms and provisions hereof, and such payment shall be immediately due and
payable upon demand.

     4.6 GOVERNING LAW. THIS NOTE SHALL BE INTERPRETED, CONSTRUED AND ENFORCED ACCORDING TO THE
LAWS OF THE STATE IN WHICH THE SECURITY PROPERTY IS LOCATED.

     4.7 WAIVER OF JURY TRIAL. MAKER, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES
AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING
OUT OF, OR IN ANY WAY RELATING TO THE DEBT EVIDENCED BY THIS NOTE OR ANY CONDUCT, ACT OR OMISSION
OF PAYEE OR MAKER, OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES,
AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH PAYEE OR MAKER, IN EACH OF THE FOREGOING
CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

     4.8 Secondary Market. Payee may sell, transfer and deliver the Loan Documents to one or more
investors in the secondary mortgage market. In connection with such sale, Payee may retain or
assign responsibility for servicing the loan evidenced by this Note or may delegate some or all of
such responsibility and/or obligations to a servicer, including, but not limited to, any
subservicer or master servicer, on behalf of the investors. All references to Payee herein shall
refer to and include, without limitation, any such servicer, to the extent applicable.

     4.9 Dissemination of Information. If Payee determines at any time to sell, transfer or assign
this Note, the Security Instrument and the other Loan Documents, and any or all servicing rights
with respect thereto, or to grant participations therein (the “Participations”) or issue mortgage
pass-through certificates or other securities evidencing a beneficial interest in a rated or
unrated public offering or private placement (the “Securities”), Payee may forward to each
purchaser, transferee, assignee, servicer, participant, investor, or their respective successors in
such Participations and/or Securities (collectively, the “Investor”) or any Rating Agency rating
such Securities, each prospective Investor and each of the foregoing’s respective counsel, all
documents and information which Payee now has or may hereafter acquire relating to the debt
evidenced by this Note and to Maker, any guarantor, any indemnitor and the Security Property, which
shall have been furnished by Maker, any guarantor or any indemnitor as Payee determines necessary
or desirable.

 

 

ARTICLE V — MISCELLANEOUS PROVISIONS

     5.1 Miscellaneous. The terms and provisions hereof shall be binding upon and inure to the
benefit of Maker and Payee and their respective heirs, executors, legal representatives,
successors, successors-in-title and assigns, whether by voluntary action of the parties or by
operation of law. As used herein, the terms “Maker” and “Payee” shall be deemed to include their
respective heirs, executors, legal representatives, successors, successors-in-title and assigns,
whether by voluntary action of the parties or by operation of law. If Maker consists of more than
one person or entity, each shall be jointly and severally liable to perform the obligations of
Maker under this Note. All personal pronouns used herein, whether used in the masculine, feminine
or neuter gender, shall include all other genders; the singular shall include the plural and vice
versa. Titles of articles and sections are for convenience only and in no way define, limit,
amplify or describe the scope or intent of any provisions hereof. Time is of the essence with
respect to all provisions of this Note. This Note and the other Loan Documents contain the entire
agreements between the parties hereto relating to the subject matter hereof and thereof and all
prior agreements relative hereto and thereto which are not contained herein or therein are
terminated.

     5.2 Maker’s Tax Identification Number is 20-1676647.

[THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

          IN WITNESS WHEREOF, Maker has executed this Note as of the date first written above.

	 	 	 	 	 	 	 
	 	 	MAKER:
	 
	 	 	 	 	 	 
	 	 	COLE CV MADISON MS, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole Takedown, LLC,
	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	its manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John M. Pons
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	John M. Pons, Senior Vice President

 

 

Schedule A

     LOAN TERMS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	*Currency in: US Dollars
	Original Principal Amount

	 	$	$2,809,000.00	 	 	 	 	 
	Note Rate % (Per Annum)

	 	 	5.600	%	 	 	 	 
	Original Amortization Term (Months)

	 	 	999	 	 	 	 	 
	Monthly Payment Amount (Excluding IO Period)

	 	$	13,235.07	 	 	 	 	 
	Note Date

	 	 	1/19/2006	 	 	 	 	 
	First Pay Date

	 	 	3/11/2006	 	 	 	 	 
	Original Loan Term (Months)

	 	 	120	 	 	 	 	 
	Scheduled Maturity Date

	 	 	2/11/2016	 	 	 	 	 
	Interest Accrual Basis During Amortization Periods

	 	ACTUAL/360
	 	 	 	 
	Interest Only (IO) Periods (Months)

	 	 	120	 	 	 	 	 
	Interest Accrual Basis During IO Period

	 	ACTUAL/360
	 	 	 	 
	 
	CVS — MADISON, MS

	 	 	 	 	 	 	502854482	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Interest	 	 	 	 
	 	 	 	 	 	 	Accrual	 	 	 	 	 	Component of	 	 	 	 
	Pay	 	 	 	 	Days in	 	Scheduled	 	Scheduled	 	Principal Component	 	Ending Unpaid Principal
	Period	 	Pay Date	 	 	Period	 	Payment	 	Payment	 	of Scheduled Payment	 	Balance
	0
	 	 	2/11/2006	 	 	 	23	 	 	$	0.00	 	 	$	10,050.08	 	 	$	0.00	 	 	$	2,809,000.00	 
	1
	 	 	3/11/2006	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	2
	 	 	4/11/2006	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	3
	 	 	5/11/2006	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	4
	 	 	6/11/2006	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	5
	 	 	7/11/2006	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	6
	 	 	8/11/2006	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	7
	 	 	9/11/2006	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	8
	 	 	10/11/2006	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	9
	 	 	11/11/2006	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	10
	 	 	12/11/2006	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	11
	 	 	1/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	12
	 	 	2/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	13
	 	 	3/11/2007	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	14
	 	 	4/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	15
	 	 	5/11/2007	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	16
	 	 	6/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	17
	 	 	7/11/2007	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	18
	 	 	8/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	19
	 	 	9/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	20
	 	 	10/11/2007	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	21
	 	 	11/11/2007	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	22
	 	 	12/11/2007	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	23
	 	 	1/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	24
	 	 	2/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Interest	 	 	 	 
	 	 	 	 	 	 	Accrual	 	 	 	 	 	Component of	 	 	 	 
	Pay	 	 	 	 	Days in	 	Scheduled	 	Scheduled	 	Principal Component	 	Ending Unpaid Principal
	Period	 	Pay Date	 	 	Period	 	Payment	 	Payment	 	of Scheduled Payment	 	Balance
	25
	 	 	3/11/2008	 	 	 	29	 	 	$	12,671.71	 	 	$	12,671.71	 	 	$	0.00	 	 	$	2,809,000.00	 
	26
	 	 	4/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	27
	 	 	5/11/2008	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	28
	 	 	6/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	29
	 	 	7/11/2008	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	30
	 	 	8/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	31
	 	 	9/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	32
	 	 	10/11/2008	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	33
	 	 	11/11/2008	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	34
	 	 	12/11/2008	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	35
	 	 	1/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	36
	 	 	2/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	37
	 	 	3/11/2009	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	38
	 	 	4/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	39
	 	 	5/11/2009	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	40
	 	 	6/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	41
	 	 	7/11/2009	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	42
	 	 	8/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	43
	 	 	9/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	44
	 	 	10/11/2009	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	45
	 	 	11/11/2009	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	46
	 	 	12/11/2009	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	47
	 	 	1/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	48
	 	 	2/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	49
	 	 	3/11/2010	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	50
	 	 	4/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	51
	 	 	5/11/2010	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	52
	 	 	6/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	53
	 	 	7/11/2010	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	54
	 	 	8/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	55
	 	 	9/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	56
	 	 	10/11/2010	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	57
	 	 	11/11/2010	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	58
	 	 	12/11/2010	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	59
	 	 	1/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	60
	 	 	2/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	61
	 	 	3/11/2011	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	62
	 	 	4/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	63
	 	 	5/11/2011	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	64
	 	 	6/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	65
	 	 	7/11/2011	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	66
	 	 	8/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	67
	 	 	9/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	68
	 	 	10/11/2011	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	69
	 	 	11/11/2011	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	70
	 	 	12/11/2011	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	71
	 	 	1/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	72
	 	 	2/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	73
	 	 	3/11/2012	 	 	 	29	 	 	$	12,671.71	 	 	$	12,671.71	 	 	$	0.00	 	 	$	2,809,000.00	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Interest	 	 	 	 
	 	 	 	 	 	 	Accrual	 	 	 	 	 	Component of	 	 	 	 
	Pay	 	 	 	 	Days in	 	Scheduled	 	Scheduled	 	Principal Component	 	Ending Unpaid Principal
	Period	 	Pay Date	 	 	Period	 	Payment	 	Payment	 	of Scheduled Payment	 	Balance
	74
	 	 	4/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	75
	 	 	5/11/2012	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	76
	 	 	6/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	77
	 	 	7/11/2012	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	78
	 	 	8/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	79
	 	 	9/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	80
	 	 	10/11/2012	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	81
	 	 	11/11/2012	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	82
	 	 	12/11/2012	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	83
	 	 	1/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	84
	 	 	2/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	85
	 	 	3/11/2013	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	86
	 	 	4/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	87
	 	 	5/11/2013	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	88
	 	 	6/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	89
	 	 	7/11/2013	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	90
	 	 	8/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	91
	 	 	9/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	92
	 	 	10/11/2013	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	93
	 	 	11/11/2013	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	94
	 	 	12/11/2013	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	95
	 	 	1/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	96
	 	 	2/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	97
	 	 	3/11/2014	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	98
	 	 	4/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	99
	 	 	5/11/2014	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	100
	 	 	6/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	101
	 	 	7/11/2014	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	102
	 	 	8/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	103
	 	 	9/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	104
	 	 	10/11/2014	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	105
	 	 	11/11/2014	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	106
	 	 	12/11/2014	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	107
	 	 	1/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	108
	 	 	2/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	109
	 	 	3/11/2015	 	 	 	28	 	 	$	12,234.76	 	 	$	12,234.76	 	 	$	0.00	 	 	$	2,809,000.00	 
	110
	 	 	4/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	111
	 	 	5/11/2015	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	112
	 	 	6/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	113
	 	 	7/11/2015	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	114
	 	 	8/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	115
	 	 	9/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	116
	 	 	10/11/2015	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	117
	 	 	11/11/2015	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	118
	 	 	12/11/2015	 	 	 	30	 	 	$	13,108.67	 	 	$	13,108.67	 	 	$	0.00	 	 	$	2,809,000.00	 
	119
	 	 	1/11/2016	 	 	 	31	 	 	$	13,545.62	 	 	$	13,545.62	 	 	$	0.00	 	 	$	2,809,000.00	 
	120
	 	 	2/11/2016	 	 	 	31	 	 	$	2,822,545.62	 	 	$	13,545.62	 	 	$	2,809,000.00	 	 	 	0.00	 
	120
	 	 	 	 	 	 	3,652	 	 	$	4,404,761.70	 	 	$	1,595,761.70	 	 	$	2,809,000.00	 	 	 	 	 

 

 

AUTO DRAFT INFORMATION

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and return the enclosed authorization form along with a voided check and mail to the
address listed below. Please continue to send your monthly payments until you
receive written confirmation that the auto-draft service has begun. You will
receive written notification confirming your auto-draft setup and first auto-draft
date within 7 business days of the 15th of the month submitted.

Note: Requests must be received by the 15th to be set up for the
following month.

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8739 Research Drive — URP4

Charlotte, NC 28288-1075

 

 

I hereby request and authorize Wachovia Bank, National Association, doing business as Wachovia
Securities (“Wachovia Securities”), to draft my account specified below made payable to the order
of Wachovia Securities located in Charlotte, NC, provided there are sufficient funds in said
account to pay the same upon presentation. I agree that your rights in respect to each such draft
shall be the same as if it were a check drawn on Wachovia Securities and signed personally by me.
This authorization is to remain in effect until revoked by me in writing and until Wachovia
Securities actually receives such notice. I agree that Wachovia Securities shall be fully
protected in honoring any such drafts.

	 	 	 
	LOAN NUMBER

	 	          NAME OF BORROWING ENTITY
	Wachovia Loan # (9 digits)

	 	          Borrower Name
	BANK’S ROUTING NUMBER FROM CHECK

	 	ACCOUNT # TO BE DRAFTED
	Bank Routing Number (9 digits)

	 	Bank Account # (from check)
	NAME OF BANK TO BE DRAFTED

	 	LOCATION OF THE BANK
	Name of Bank

	 	          City and State

     PLEASE INCLUDE A VOIDED CHECK WITH THIS FORM

	 	 	 
	BORROWER’S SIGNATURE

	 	BORROWER’S NAME
	Authorized Signature (as it appears on bank documents)

	 	                    Print Name
	 

	 	                    TODAY’S DATE
	 

	 	                    Date
	DAY OF MONTH PAYMENT WILL DRAFT

	 	BORROWER’S FAX NUMBER
	Draft Date (Payment due date)

	 	Fax #

TERMS AND CONDITIONS

Effective Date of Draft: The draft will occur on the payment due date, unless otherwise agreed upon
by borrower and servicer. The borrower will receive a confirmation letter to insure auto-draft
set-up and to confirm draft date.

Revocation of this Authority: The authority of Wachovia Securities to transfer funds from the
borrowers account will not cease until Wachovia Securities receives written notification revoking
this authorization agreement. Wachovia Securities must receive this notice at least 15 days prior
to the date on which you wish the arrangement to end.

Dishonor: Wachovia Securities shall be under no liability whatsoever if a transfer of funds cannot
be made, whether or not such failure is caused by the act of omission of the borrower.

Insufficient Funds: If the automatic withdrawal is returned due to insufficient funds both Wachovia
Securities and the borrower’s financial institution may assess a fee.

Errors: The borrower has the right to have the amount of any incorrect deduction immediately
corrected by the borrower’s financial institution provided the borrower sends the appropriate
notice to the financial institution.

Amount of Draft: Wachovia Securities will withdraw the amount of the current monthly receivable.
This amount may vary due to escrow analyses, interest rate changes or reserve requirements as
applicable.

ACH Routing Number: Please contact the financial institution from which the money will be drafted
for this information.

Wachovia Securities is the trade name under which Wachovia Corporation conducts its investment banking, capital markets and institutional securities
business through First Union Securities, Inc. (“FUSI”), Member NYSE, NASD, SIPC, and through other bank and non-bank and broker-dealer subsidiaries of Wachovia Corporation.EX-10.69 COLE CO PURCHASE AND SALE AGREEMENT

 

Exhibit 10.69

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of May 26, 2006, between SERIES
D, LLC, an Arizona limited liability company (“Seller”) having an address at 2555 East Camelback
Road, Suite 400, Phoenix, AZ 85016, COLE OPERATING PARTNERSHIP II, LP, a Delaware limited
partnership (“Purchaser”), having an address at 2555 East Camelback Road, Suite 400, Phoenix, AZ
85016.

RECITALS:

	 	A.	 	Seller owns 100% of the limited partnership interests (which is 99.99%
of the partnership interest) (“Sale Assets”) in Cole CO San Antonio TX, LP, a
Delaware limited partnership (“CO San Antonio TX”).
	 
	 	B.	 	Purchaser desires to acquire from Seller, and Seller desires to sell to
Purchaser, the Sale Assets in accordance with and subject to the terms and
conditions of this Agreement.

     NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, Seller and Purchaser agree as follows:

ARTICLE I

Definitions

     The following capitalized terms used in this Agreement shall have the meanings ascribed to
them below:

     “Assignment” shall have the meaning set forth in Section 2.03(b) of this Agreement.

     “Cash Portion” shall have the meaning set forth in Section 2.02 of this Agreement.

     “Closing” shall have the meaning set forth in Section 2.03(a) of this Agreement.

     “Closing Date” shall have the meaning set forth in Section 2.03(a) of this Agreement.

     “CO San Antonio TX” shall have the meaning set forth in the Recitals of this Agreement.

     “Lease” shall mean the Lease for the Property dated April 15, 2003 by and between Lessee and
CO San Antonio TX.

     “Lender” shall mean Wachovia Bank, National Association, a national banking association.

     “Lessee” shall mean Specialized Realty Development Services, LP, a Texas limited partnership.

     “Loan” shall mean that Three Million Five Hundred Eighty Thousand and no/100 Dollars
($3,580,000.00) loan from Lender to Co San Antonio TX, secured by the Property.

     “Material Organizational Documents” shall mean, collectively, the following documents, as the
same may hereafter be amended: (i) Certificate of Formation of CO San Antonio TX, and (ii) Limited
Partnership Agreement of CO San Antonio TX, together with any amendments thereto.

     “Mortgage” shall mean the Deed of Trust and Security Agreement dated April 25, 2006 affecting
the Property.

     “Person” shall mean any individual, corporation, partnership, limited liability company, joint
venture, estate, trust, unincorporated association, any federal, state, county or municipal
government or any bureau, department or agency thereof and any fiduciary acting in such capacity on
behalf of any of the foregoing.

 

 

     “Property” shall mean the right, title and interest, if any of, CO San Antonio TX in the
property commonly known as 11751 W. FM 1604, San Antonio, Texas 78250 and all improvements situated
thereon, together with all right, title and interest, if any, of CO San Antonio TX in and to all
hereditaments, easements, rights-of-way, drives, alleys, parking areas and appurtenances thereunto
belonging, or in any way appertaining to such real property.

     “Purchase Price” shall have the meaning given such term in Section 2.02 of this Agreement.

     “Purchaser” shall have the meaning given such term in the Preamble of this Agreement.

     “Purchaser’s Closing Costs” shall have the meaning given such term in Section 2.04(b) of this
Agreement.

     “Purchaser Closing Documents” shall have the meaning given such term in Section 3.02(b) of
this Agreement.

     “Sale Assets” shall have the meaning given such term in the Recitals of this Agreement.

     “Seller” shall have the meaning given such term in the Preamble of this Agreement.

     “Seller Closing Documents” shall have the meaning given such term in Section 3.01(b) of this
Agreement.

     “Seller’s Closing Costs” shall have the meaning given such term in Section 2.04(a) of this
Agreement.

     “Seller’s Parties” shall have the meaning given such term in Section 2.05(b) of this
Agreement.

ARTICLE II

Agreement to Sell and Purchase;

Terms of Sale and Purchase

     2.01 Agreement to Sell and Purchase. In consideration of the mutual covenants and
agreements set forth herein and upon and subject to the terms, provisions and conditions of this
Agreement, Seller agrees to sell, assign, transfer and convey to Purchaser, and Purchaser agrees to
purchase and acquire from Seller, the Sale Assets, in accordance with and subject to the terms and
conditions of this Agreement.

     2.02 Purchase Price; Prorations. The purchase price payable by Purchaser to Seller
for the Sale Assets shall be Four Million Six Hundred Twenty-Four Thousand Six Hundred Eighteen and
79/100 Dollars ($4,624,618.79) (the “Purchase Price”), of which One Million Forty-Four Thousand
Nine Hundred Seventy-Six and 79/100 Dollars ($1,044,976.79) shall be cash (the “Cash Portion”) and
Three Million Five Hundred Seventy-Nine Thousand Six Hundred Forty-Two and no/100 Dollars
($3,579,642.00) shall be by the assumption of the Loan, payable as follows:

          (a) On the Closing Date, the Cash Portion shall be paid by wire transfer of immediately
available United States federal funds or other method acceptable to Seller to the account or
accounts designated by Seller.

          (b) Purchaser acknowledges that the Property is leased to the Lessee pursuant to the Lease and
that Lessee pays minimum rent on a monthly basis pursuant thereto. On the Closing Date, Seller and
Purchaser shall prorate the minimum rent paid under the Lease for the month in which the Closing
Date occurs, such that there shall be an adjustment in favor of Purchaser in an amount determined
by multiplying such minimum rent for the month in question by a fraction, the numerator of which is
the number of days from and after the Closing Date through the last day of the month in which the
Closing occurs and the denominator of which is the total number of days in the month in which the
Closing occurs. It is the intention of the parties to adjust only the minimum rent for the month
in which the Closing occurs. There shall be no other prorations or adjustments.

     2.03 The Closing.

 

 

          (a) The consummation of the sale and purchase of the Sale Assets contemplated by this
Agreement (the “Closing”) shall take place on May 26, 2006 (the “Closing Date”).

          (b) On the Closing Date, Seller shall sell, assign, transfer and convey to Purchaser all of
Seller’s right, title and interest in and to the Sale Assets by delivery to Purchaser of an
instrument of assignment in the form annexed hereto as Schedule A (the “Assignment”), and
Purchaser shall pay to Seller the Purchase Price therefor as contemplated by Section 2.02 hereof.

     2.04 Closing Costs.

          (a) In connection with the conveyance of the Sale Assets by Seller to Purchaser, Seller shall
pay the (“Seller’s Closing Costs”) fees and expenses of Seller’s legal counsel.

          (b) In connection with the conveyance of the Sale Assets by Seller to Purchaser, Purchaser
shall pay the following (“Purchaser’s Closing Costs”): (i) the fees and expenses of Purchaser’s
legal counsel, (ii) all costs incurred in connection with Purchaser’s assumption of the Loan
(including Lender’s costs and expenses), (iii) any transfer taxes, if applicable, arising in
connection with the transaction contemplated by this Agreement, (iv) the cost of Purchaser’s due
diligence investigation, and (v) all other costs and expenses arising in connection with the
transaction contemplated herein, other than the costs that are Seller’s responsibility pursuant to
Section 2.04(a) hereof.

          (c) The provisions of this Section 2.04 shall survive the Closing.

     2.05 Non-Recourse.

          (a) With respect to a violation of a representation by Seller contained herein or made
pursuant hereto discovered by Purchaser after the Closing, subject to the limitation of survival of
a representation set forth in Section 3.01 hereof, Purchaser shall be entitled to commence an
action to obtain actual damages against Seller; provided, however, that Seller’s liability
hereunder shall in no event exceed an amount equal to the Purchase Price actually received by
Seller; provided, further, however, in no event shall Purchaser have the right to collect any
consequential or indirect damages from Seller and Purchaser waives any and all such rights.

          (b) Anything contained in this Agreement to the contrary notwithstanding, no recourse shall be
had for the payment of any sum due under this Agreement, or for any claim based hereon or otherwise
in respect hereof against any members, directors, officers, employees, shareholders, policyholders,
partners, affiliates, trustees, administrators or agents of Seller or of any of the foregoing or
the legal representative, heir, estate, successor or assignee of any of the foregoing or against
any other person, partnership, corporation or trust, as principal of Seller, whether disclosed or
undisclosed (collectively, “Seller’s Parties”). It is understood and agreed by the parties that
all of the obligations of Seller under or with respect to this Agreement may not be enforced
against Seller’s Parties.

ARTICLE III

Representations and Warranties

     3.01 Seller Representations and Warranties. Seller represents and warrants to
Purchaser that as of the date hereof:

          (a) Seller is a limited liability company, duly organized, validly existing and in good
standing under the laws of its jurisdiction of formation.

          (b) Seller has all requisite power and authority to execute and deliver this Agreement and all
documents, certificates, agreements, instruments and writings it is required to deliver hereunder
(collectively, the “Seller Closing Documents”), and to perform, carry out and consummate the
transactions contemplated to be consummated by it hereby and thereby, including the power and
authority to sell, transfer and convey the interest in the Sale Assets to be sold by it, subject to
the satisfaction of the conditions precedent to Seller’s obligations hereinafter provided. The
execution, delivery and performance of this Agreement and the other Seller Closing

 

 

Documents have been duly authorized by all necessary action of Seller, including any required
approval of the members of Seller. This Agreement does, and when executed by Seller, the other
Seller Closing Documents shall, constitute the legal, valid and binding obligations of Seller,
enforceable against Seller in accordance with their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency or similar laws and by equitable principles.

          (c) There is no action, suit or proceeding before any court or governmental or other
regulatory or administrative agency, commission or tribunal pending or, to the actual knowledge of
Seller, threatened against Seller or the interest in the Sale Assets to be sold by Seller which, if
determined adversely to Seller would reasonably be expected to interfere in any material respect
with the ability of Seller to perform its obligations under this Agreement or materially and
adversely affect the value of the interest in the Sale Assets to be sold by Seller.

          (d) Seller has not entered into any leases for the Property other than the Lease.

          (e) To Seller’s actual knowledge, the Lease is in full force and effect and the obligation to
pay rent thereunder has commenced. Seller has not received written notice of any uncured default
from Lessee under the Lease.

          (f) At Closing, other than the lien of the Mortgage, the Sale Assets to be sold by Seller
shall be free and clear of any lien, security interest or encumbrance thereon. There are no
rights, options or other agreements of any kind to purchase, acquire, receive or issue any interest
of Seller in and to the Sale Assets to be sold by it.

          (g) CO San Antonio TX has legal title to the Property, subject to the existing state of title
of the Property.

          (h) CO San Antonio TX has not incurred any liabilities, except for (i) its obligations under
the Mortgage, (ii) its obligations under the Material Organizational Documents, (iii) obligations
arising from or relating to the ownership of its interests in the Property, (iv) its obligations
relating to the maintenance of its status as a Delaware limited partnership and the maintenance of
such company’s qualifications to do business in such other jurisdictions where it has qualified to
do business, (v) obligations arising under any matter appearing of record against the Property,
(vi) customary unsecured trade debt which will not exceed $1,000.00 as of the Closing Date, and
(vii) the obligation to pay fees to National Registered Agents, Inc. for acting as its registered
agent. CO San Antonio TX does not own any assets, except (1) relating to the ownership of its
interest in the Property, and (2) bank accounts.

          (i) CO San Antonio TX has been duly formed as a limited partnership and is validly existing in
good standing under the laws of the State of Delaware and has the power and authority to own the
Property.

     3.02 Purchaser Representations and Warranties. Purchaser represents and warrants to
Seller that as of the date hereof:

          (a) Purchaser is a limited partnership, duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation.

          (b) Purchaser has all requisite power and authority to execute and deliver this Agreement and
all documents, certificates, agreements, instruments and writings it is required to deliver
hereunder, if any (collectively, the “Purchaser Closing Documents”), and to perform, carry out and
consummate the transactions contemplated hereby and thereby. The execution, delivery and
performance of this Agreement and the other Purchaser Closing Documents have been duly authorized
by all necessary corporate action on the part of Purchaser. This Agreement does, and when executed
by Purchaser, the other Purchaser Closing Documents shall, constitute the legal, valid and binding
obligations of Purchaser enforceable against Purchaser in accordance with their respective terms,
except as such enforceability may be limited by bankruptcy, insolvency or similar laws and by
equitable principles.

 

 

          (c) There is no action, suit or proceeding before any court or governmental or other
regulatory or administrative agency, commission or tribunal pending or, to the actual knowledge of
Purchaser (without any duty to investigate), threatened against Purchaser which, if determined
adversely to Purchaser, could reasonably be expected to interfere in any material respect with the
ability of Purchaser to perform its obligations under this Agreement.

ARTICLE IV

Conditions

     4.01 Seller’s Conditions. The obligation of Seller under this Agreement to
consummate the transactions contemplated hereby shall be subject to the satisfaction of all the
following conditions, any one or more of which may be waived in writing by Seller:

          (a) Seller shall have received payment of the Purchase Price in accordance with Section 2.02
of this Agreement.

          (b) Purchaser shall have delivered all of the documents and other items described in Section
5.01.

          (c) The representations and warranties of Purchaser set forth in Section 3.02 above shall be
true and correct in all material respects.

     4.02 Purchaser’s Conditions. The obligation of Purchaser under this Agreement to
consummate the transactions contemplated hereby shall be subject to the satisfaction of all of the
following conditions, any one or more of which may be waived in writing by Purchaser:

          (a) Seller shall have delivered all of the documents and other items described in Section
5.02.

          (b) The representations and warranties of Seller set forth in Section 3.01 above shall be true
and correct in all material respects, except for any matters pertaining to the Properties that are
Lessee’s responsibility under the Lease.

ARTICLE V

Closing Deliveries

     5.01 Purchaser’s Closing Deliveries. At or prior to the Closing, Purchaser shall
make or cause to be made the following deliveries:

          (a) Purchaser shall have executed and delivered to Seller the Assignment.

          (b) Purchaser shall have delivered to Seller evidence as to the authority of the person or
persons executing documents on behalf of Purchaser.

     5.02 Seller’s Closing Deliveries. At or prior to the Closing, Seller shall make or
cause to be made the following deliveries:

          (a) Seller shall have executed and delivered to Purchaser the Assignment.

          (b) Seller shall have executed and delivered to Purchaser a certificate of “non- foreign
person” status that meets the requirements of Section 1445 of the Internal Revenue Code of 1986, as
amended.

          (c) Seller shall have delivered to Purchaser the original or certified copies of the Material
Organizational Documents.

 

 

          (d) Seller shall have delivered to Purchaser evidence as to the authority of the person or
persons executing the Seller Closing Documents on behalf of Seller.

ARTICLE VI

Miscellaneous

     6.01 Broker. (a) Seller represents and warrants that neither Seller nor any of its
respective affiliates or any of its respective directors, officers, partners, managers or members
has dealt with anyone acting as broker, finder, financial advisor or in any similar capacity in
connection with this Agreement or any of the transactions contemplated hereby. Seller shall
indemnify, defend and hold harmless Purchaser from any and all claims, actions, liabilities,
losses, damages and expenses, including reasonable attorneys’ fees and disbursements, which may be
asserted against or incurred by Purchaser arising from a breach of Seller’s representation
contained in this Section 6.01(a).

          (b) Purchaser represents and warrants that neither Purchaser nor any of its affiliates or any
of their respective directors, officers, partners, managers or members has dealt with anyone acting
as broker, finder, financial advisor or in any similar capacity in connection with this Agreement
or any of the transactions contemplated hereby. Purchaser shall indemnify, defend and hold
harmless Seller from any and all claims, actions, liabilities, losses, damages and expenses,
including reasonable attorneys’ fees and disbursements, which may be asserted against or incurred
by Seller arising from a breach of Purchaser’s representation contained in this Section 6.01(b).

     6.02 Entire Agreement. This Agreement, including all schedules and exhibits hereto,
the Seller Closing Documents and the Purchaser Closing Documents supersede all prior discussions
and agreements between the parties with respect to the subject matter hereof and thereof, and
contain the sole and entire agreement between the parties hereto with respect to the subject matter
hereof and thereof.

     6.03 Waiver. Any term or condition of this Agreement may be waived at any time by
the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in written instrument duly executed by or on behalf of the party waiving such term or
condition. No waiver by any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies, either under this Agreement or
by applicable law or otherwise afforded, will be cumulative and not alternative.

     6.04 Modification. This Agreement may be amended, supplemented or modified only by
a written instrument duly executed by or on behalf of each party hereto.

     6.05 Successors and Assigns. The terms and provisions of this Agreement are intended
solely for the benefit of each party hereto and their respective successors or permitted assigns,
and it is not the intention of the parties to confer third-party beneficiary rights upon any other
person. Subject to the terms of Section 6.10 hereof, this Agreement is binding upon, inures to the
benefit of and is enforceable by the parties hereto and their respective successors and assigns.

     6.06 Interpretation. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any present or future law, and if the rights or obligations of any
party hereto under this Agreement will not be materially and adversely affected thereby, (a) such
provision will be fully severable, (b) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining
provisions of this Agreement will remain in full force and effect and will not be affected by the
illegal, valid or unenforceable provision or by its severance herefrom and (d) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

     6.07 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Arizona applicable to a contract executed and performed in such
State, without giving effect to the

 

 

conflicts of laws principles thereof.

     6.08 Counterparts. This Agreement may be executed in any number of counterparts,
and by facsimile signature, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

     6.09 Assignment. Purchaser shall not assign or transfer its rights or obligations
under this Agreement without the prior written consent of Seller, which consent may be granted or
denied in Seller’s reasonable discretion. Notwithstanding the foregoing, Purchaser shall have the
right, without Seller’s consent, to assign this Agreement to any affiliate of Purchaser controlled
by Purchaser, provided such assignee agrees to assume, pursuant to an instrument reasonably
acceptable to Seller, the obligations of Purchaser hereunder. No assignment of this Agreement by
Purchaser shall relieve the Purchaser named herein of its obligations hereunder and, subsequent to
any such assignment, the liability of such named Purchaser hereunder shall continue notwithstanding
any subsequent modification or amendment hereof or the release of any subsequent purchaser
hereunder from any liability, to all of which Purchaser consents in advance. No further assignment
or transfer shall be permitted.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, Seller and Purchaser have executed and delivered this Agreement as of the
day and year first above written.

	 	 	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 	 	 
	 	 	SERIES D, LLC, an Arizona limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ John M. Pons
	 	 	 	 	 
	 	 	 	 	John M. Pons
	 	 	 	 	Authorized Officer
	 
	 	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 	 	 
	 	 	COLE OPERATING PARTNERSHIP II, LP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole Credit Property Trust II, Inc., a Maryland corporation, its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Blair D. Koblenz
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Blair D. Koblenz
	 

	 	 	 	 	 	Executive Vice President

 

 

SCHEDULE A

INSTRUMENT OF ASSIGNMENT AND ASSUMPTION

     INSTRUMENT
OF ASSIGNMENT AND ASSUMPTION (this “Agreement”), dated this ___ day of May, 2006,
between SERIES D, LLC, an Arizona limited liability company (“Assignor”), and COLE OPERATING
PARTNERSHIP II, LP, a Delaware limited partnership (“Assignee”), as assignee, having an address at
2555 East Camelback Road, Suite 400, Phoenix, AZ 85016.

W I T N E S S E T H:

     WHEREAS, Assignor owns 100% of the limited partnership interests (which is 99.99% of the
partnership interest) (the “Interest”) in Cole CO San Antonio TX, LP, a Delaware limited
partnership (“CO San Antonio TX”); and

     WHEREAS, Assignor and Assignee are entering into this Agreement to evidence and confirm the
transfer and assignment of the Interest to Assignee, and the assumption by Assignee of the
obligations and responsibilities attendant thereto, all from and after the date hereof.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Assignor hereby transfers, assigns and conveys to Assignee, its successors and
assigns forever, the Interest from and after the date hereof.

     TO HAVE AND TO HOLD, unto Assignee, its successors and assigns, forever.

     Assignor makes no representation or warranty, express or implied, in fact or by law, with
respect to the assets being conveyed hereunder, except as represented and warranted by Assignor in
the Purchase and Sale Agreement, dated as of May ___, 2006, between Assignor and Assignee (the
Purchase Agreement”), subject to the conditions and limitations set forth therein.

     Assignee hereby accepts such transfer, assignment and conveyance and assumes all of the
obligations of Assignor under the Material Organizational Documents (as defined in the Purchase
Agreement) arising from and after the date hereof, and agrees to be bound by the terms contained in
the Material Organizational Documents.

     Assignor withdraws, and relinquishes any and all of its right, title and interest, as a
Limited Partner of CO San Antonio TX, from and after the date hereof. Assignee unconditionally and
irrevocably consents to such withdrawal.

     This Agreement shall be binding upon, inure to the benefit of, and be enforceable by Assignor
and Assignee, and their respective successors and assigns.

     Whenever possible, each provision hereof shall be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision hereof shall be prohibited by or
invalid under such law, then such provision shall be ineffective to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or the remaining provisions of
this Agreement. This Agreement may not be modified, amended, altered or changed, nor any provision
hereof waived, except in writing with the mutual consent of all parties hereto.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona (without reference to conflicts of laws principles).

     This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which when taken together shall constitute a single original.

 

 

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Agreement on the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 	 	 
	 	 	COLE ACQUISITIONS I, LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	John M. Pons
	 	 	 	 	Senior Vice President
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 
	 	 	COLE OPERATING
PARTNERSHIP II, LP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole Credit Property Trust II, Inc., a Maryland corporation, its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Blair D. Koblenz
	 

	 	 	 	 	 	Executive Vice President

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