Document:

Unassociated Document

    ESCROW
AGREEMENT

    

    

    

    UMB Bank,
N.A.

    1010
Grand Blvd., 4th
Floor

    Mail
Stop: 1020409

    Kansas
City, MO 64106

    

    Re:           Carter Validus Mission
Critical REIT, Inc.

    

    Ladies
and Gentlemen:

    

    CARTER
VALIDUS MISSION CRITICAL REIT, INC., a Maryland corporation (the “Company”), will issue
in a public offering (the “Offering”) shares of
its common stock (the “Stock”) pursuant to a
registration statement on Form S-11 filed by the Company with the Securities and
Exchange Commission.  SC Distributors, a Delaware limited liability
company (the “Dealer
Manager”), will act as dealer manager for the offering of the
Stock.  The Company is entering into this agreement to set forth the
terms on which UMB Bank, N.A. (the “Escrow Agent”), will,
except as otherwise provided herein, hold and disburse the proceeds from
subscriptions for the purchase of the Stock in the Offering until such time as:
(i) in the case of subscriptions received from all non-affiliates of the
Company, the Company has received subscriptions for Stock resulting in a total
of 200,000 shares ($2,000,000) of common stock sold in the Offering (the “Required Capital”);
(ii) in the case of subscriptions received from residents of Pennsylvania
(“Pennsylvania
Subscribers”), the Company has received subscriptions for Stock from
non-affiliates of the Company resulting in total minimum capital raised of
$86,875,000 (the “Pennsylvania Required
Capital”); and (iii) in the case of subscriptions received from residents
of Tennessee (“Tennessee
Subscribers”), the Company has received subscriptions for Stock resulting
in a total of 1,000,000 shares ($10,000,000) of Stock sold in the Offering (the
“Tennessee Required
Capital”).

    

    The
Company hereby appoints UMB Bank, N.A., as Escrow Agent for purposes of holding
the proceeds from the subscriptions for the Stock, on the terms and conditions
hereinafter set forth:

    

    
    

    1.           Until
such time as the Company has received subscriptions for Stock resulting in total
minimum capital raised equal to the Required Capital and such funds are
disbursed from the Escrow Account (as defined below) in accordance with
paragraph 3(a) hereof, persons subscribing to purchase the Stock (the “Subscribers”) will be
instructed by the Dealer Manager or any soliciting dealers to remit the purchase
price in the form of checks, drafts, wires, Automated Clearing House (ACH) or
money orders (hereinafter
“instruments of
payment”) payable to the order of “UMB Bank, N.A., Agent for Carter
Validus Mission Critical REIT, Inc.” or a recognizable contractor or
abbreviation thereof, including but not limited to, “UMB Bank, N.A., f/b/o for
CVREIT.”  After subscriptions are received resulting in total minimum
capital raised equal to the Required Capital and such funds are disbursed from
the Escrow Account in accordance with paragraph 3(a) hereof, subscriptions shall
continue to be so submitted unless otherwise instructed by the Dealer Manager;
provided, however, that Tennessee Subscribers and Pennsylvania Subscribers shall
continue to make checks payable to the order of “UMB Bank, N.A., Agent for
Carter Validus Mission Critical REIT, Inc.” until subscriptions are received
resulting in total minimum capital raised equal to the Tennessee Required
Capital and the Pennsylvania Required Capital, as applicable, and such funds are
disbursed from the Tennessee Escrow Account (as defined below) or the
Pennsylvania Escrow Account, as applicable, in accordance with paragraph 3(a)
hereof.  Any checks, drafts or money orders received made payable to a
party other than the Escrow Agent (or after the Required Capital is received,
made payable to a party other than the party designated by the Dealer Manager)
shall be returned to the soliciting dealer who submitted the check, draft or
money order.  Within one (1) business day after receipt of instruments
of payment from the Offering, the Dealer Manager, the Company or their
respective agents will (a) send to the Escrow Agent: each Subscriber’s name,
address, number of shares purchased, and purchase price remitted, and (b) Escrow
Agent will deposit the instruments of payment from such Subscribers, into an
interest-bearing deposit account entitled “Escrow Account for the Benefit of
Subscribers for Common Stock of Carter Validus Mission Critical REIT, Inc.” (the
“Escrow
Account”), which deposit shall occur within one (1) business day after
the Escrow Agent’s receipt of the instrument of payment, until such Escrow
Account has closed pursuant to paragraph 3(a)
hereof.  Instruments of payment received from Pennsylvania Subscribers
(as identified as such by the Company) shall be accounted for separately in a
subaccount entitled “Escrow Account for the Benefit of Pennsylvania Subscribers
for CVREIT” (the “Pennsylvania Escrow
Account”), until such Pennsylvania Escrow Account has closed pursuant to
paragraph 3(a) hereof; provided, however, that instruments of payment received
from Tennessee Subscribers (as identified as such by the Company) shall be
accounted for separately in a subaccount entitled “Escrow Account for the
Benefit of Tennessee Subscribers for CVREIT” (the “Tennessee Escrow
Account”), until such Tennessee Escrow Account has closed pursuant to
paragraph 3(a) hereof.  Each of the Escrow Account, the Tennessee
Escrow Account and the Pennsylvania Escrow Account will be established and
maintained in such a way as to permit the interest income calculations described
in paragraph 7.  The Company shall, and shall cause its agents to,
cooperate with the Escrow Agent in separately accounting for Tennessee and
Pennsylvania subscription proceeds in the Tennessee Escrow Account and the
Pennsylvania Escrow Account, as applicable, and the Escrow Agent shall be
entitled to rely upon information provided by the Company or its agents in this
regard.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
2.           The
Escrow Agent agrees to promptly process for collection the instruments of
payment upon deposit into the Escrow Account, the Tennessee Escrow Account or
the Pennsylvania Escrow Account, as applicable.  Deposits shall be
held in the Escrow Account, the Tennessee Escrow Account or the Pennsylvania
Escrow Account until such funds are disbursed in accordance with
paragraph 3 hereof.  Prior to disbursement of the funds deposited
in the Escrow Account, the Tennessee Escrow Account or the Pennsylvania Escrow
Account, such funds shall not be subject to claims by creditors of the Company,
the Dealer Manager, any soliciting dealer or any of their respective
affiliates.  If any of the instruments of payment are returned to the
Escrow Agent for nonpayment prior to receipt of the Required Capital or, in
connection with the Tennessee Subscribers, the Tennessee Required Capital or, in
connection with subscriptions from Pennsylvania Subscribers, the Pennsylvania
Required Capital, the Escrow Agent shall promptly notify the Dealer Manager and
the Company in writing via mail, email or facsimile of such nonpayment, and is
authorized to debit the Escrow Account, the Tennessee Escrow Account or the
Pennsylvania Escrow Account, as applicable, in the amount of such returned
payment as well as any interest earned on the amount of such
payment.

    

    3.      (a)           (i)
Subject to the provisions of subparagraphs 3(b)-3(f) below, once the collected
funds in the Escrow Account are an amount equal to or greater than the Required
Capital, the Escrow Agent shall promptly notify the Company and instruct the
Dealer Manager, or its agent, to deliver an executed IRS Form W-9 for each
Subscriber and, upon receiving written instruction from the Company, (A)
disburse to the Company, by check, ACH or wire transfer, the funds in the Escrow
Account representing the gross purchase price for the Stock, and (B) within five
business days after the first business day of the succeeding month, disburse to
the Subscribers or the Company, as applicable, any interest thereon pursuant to
the provisions of subparagraph 3(f).  After such time the Escrow
Account shall remain open and the Company shall continue to cause subscriptions
for the Stock that are not to be deposited in the Tennessee Escrow Account or
the Pennsylvania Escrow Account to be deposited therein until the Company
informs the Escrow Agent in writing to close the Escrow Account, and thereafter
any subscription documents and instruments of payment received by the Escrow
Agent from Subscribers other than Pennsylvania Subscribers shall be forwarded
directly to the Company.  For purposes of this Agreement, the term
“collected funds” shall mean all funds received by the Escrow Agent that have
cleared normal banking channels and are in the form of cash or cash
equivalent.   After the satisfaction of the aforementioned
provisions of this paragraph 3(a)(i), in the event the Company receives
subscriptions made payable to the Escrow Agent (other than subscriptions that
are to be deposited in the Tennessee Escrow Account and the Pennsylvania Escrow
Account), subscription proceeds may continue to be received in this account
generally, but to the extent such proceeds shall not be subject to escrow due to
the satisfaction of the aforementioned provisions of this paragraph 3(a)(i),
such proceeds are not subject to this Escrow Agreement and at the instruction of
the Company to the Escrow Agent shall be transferred from the Escrow Account or
deposited directly into, as the case may be, a commercial deposit account in the
name of the Company with the Escrow Agent (the “Deposit Account”) that has been
previously established by the Company, unless otherwise directed by the
Company.  The Company hereby covenants and agrees that it shall do all
things necessary in order to establish the Deposit Account, which shall be
subject to the Escrow Agent’s usual account guidelines and regulations, prior to
its use.  No provisions of this Escrow Agreement shall apply to the Deposit
Account.

     

    
      
         

      

      
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    (ii)
regardless of any release of funds from, or the closing of, the Escrow Account,
the Company, the Dealer Manager and soliciting dealers shall continue to forward
instruments of payment received from Tennessee Subscribers for deposit into the
Tennessee Escrow Account to the Escrow Agent until such time as the Company
notifies the Escrow Agent in writing that total subscription proceeds (including
the amount then in the Tennessee Escrow Account) equal or exceed the Tennessee
Required Capital.  Within five days after
receipt by the Escrow Agent of such notice, the Escrow Agent shall instruct the
Dealer Manager, or its agent, to deliver an executed IRS Form W-9 for each
Tennessee Subscriber and (A) disburse to the Company, by check, ACH or wire
transfer, the funds then in the Tennessee Escrow Account representing the gross
purchase price for the Stock, and (B) within five business days after the first
business day of the succeeding month, disburse to the Tennessee Subscribers or
the Company, as applicable, any interest thereon pursuant to the provisions of
subparagraph 3(f).  Following such disbursements, the Escrow
Agent shall close the Tennessee Escrow Account, and thereafter any instruments
of payment received by the Escrow Agent from Tennessee Subscribers shall not be
subject to this Escrow Agreement and shall be deposited directly into the Escrow
Account or the Deposit Account, as instructed in writing by the Company pursuant
to subparagraph 3(a)(i) above.

    

    (iii)
regardless of any release of funds from, or the closing of, the Tennessee Escrow
Account or the Escrow Account, the Company, the Dealer Manager and soliciting
dealers shall continue to forward instruments of payment received from
Pennsylvania Subscribers for deposit into the Pennsylvania Escrow Account to the
Escrow Agent until such time as the Company notifies the Escrow Agent in writing
that total subscription proceeds (including the amount then in the Pennsylvania
Escrow Account) equal or exceed the Pennsylvania Required Capital.  Within five days after
receipt by the Escrow Agent of such notice, the Escrow Agent shall instruct the
Dealer Manager, or its agent, to deliver an executed IRS Form W-9 for each
Pennsylvania Subscriber and (A) disburse to the Company, by check, ACH or wire
transfer, the funds then in the Pennsylvania Escrow Account representing the
gross purchase price for the Stock, and (B) within five business days after the
first business day of the succeeding month, disburse to the Pennsylvania
Subscribers or the Company, as applicable, any interest thereon pursuant to the
provisions of subparagraph 3(f).  Following such disbursements,
the Escrow Agent shall close the Pennsylvania Escrow Account, and thereafter any
instruments of payment received by the Escrow Agent from Pennsylvania
Subscribers shall not be subject to this Escrow Agreement and shall be deposited
directly into the Escrow Account or the Deposit Account, as instructed in
writing by the Company pursuant to subparagraph 3(a)(i) above.

    

    (b)           Within
four business days of the close of business on the date that is one year
following commencement of the Offering (the “Expiration Date”),
the Escrow Agent shall promptly notify the Company if it is not in receipt of
evidence of deposits for the purchase of Stock providing for aggregate offering
proceeds that equal or exceed the Required Capital (from all sources but
exclusive of any funds received from subscriptions for Stock from entities which
the Company has notified the Escrow Agent are affiliated with the
Company).  Within ten days following the date of such notice, the
Escrow Agent shall promptly return directly to each Subscriber the collected
funds deposited in the Escrow Account, the Tennessee Escrow Account and the
Pennsylvania Escrow Account on behalf of such Subscriber (unless earlier
disbursed in accordance with paragraph 3(c)), or shall return the instruments of
payment delivered, but not yet processed for collection prior to such time, in
either case, together with interest income (which interest shall be paid within
five business days after the first business day of the succeeding month) in the
amounts calculated pursuant to paragraph 7 for each Subscriber at the address
provided by the Dealer Manager or the Company to the Escrow Agent, which the
Escrow Agent shall be entitled to rely upon.  Notwithstanding the
above, in the event the Escrow Agent has not received an executed IRS Form W-9
at such time for each Subscriber, the Escrow Agent shall remit an amount to the
Subscribers in accordance with the provisions hereof, withholding the applicable
percentage for backup withholding required by the Internal Revenue Code, as then
in effect, from any interest income on subscription proceeds (determined in
accordance with paragraph 7) attributable to each Subscriber for whom the Escrow
Agent does not possess an executed IRS Form W-9.  However, the Escrow
Agent shall not be required to remit any payments until the Escrow Agent has
collected funds represented by such payments.

     

    
      
         

      

      
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    (c)           Notwithstanding
subparagraphs 3(a) and 3(b) above, if the Escrow Agent is not in receipt of
evidence of subscriptions accepted on or before the close of business on such
date that is 120 days after commencement of the Offering (the Company will
notify the Escrow Agent of the commencement date of the Offering) (the “Initial Escrow
Period”), and instruments of payment dated not later than that date, for
the purchase of Stock providing for total purchase proceeds from all
nonaffiliated sources that equal or exceed the Pennsylvania Required Capital,
the Escrow Agent shall promptly notify the Company.  Thereafter, the
Company shall send to each Pennsylvania Subscriber by certified mail within ten
(10) calendar days after the end of the Initial Escrow Period a notification in
the form of Exhibit A.  If, pursuant to such notification, a
Pennsylvania Subscriber requests the return of his or her subscription funds
within ten (10) calendar days after receipt of the notification (the “Request Period”), the
Escrow Agent shall promptly refund directly to each Pennsylvania Subscriber the
collected funds deposited in the Pennsylvania Escrow Account on behalf of such
Pennsylvania Subscriber or shall return the instruments of payment delivered,
but not yet processed for collection prior to such time, to the address provided
by the Dealer Manager or the Company or their respective agents to the Escrow
Agent, which the Escrow Agent shall be entitled to rely upon, together with
interest income (which interest shall be paid within five business days after
the first business day of the succeeding month) in the amounts calculated
pursuant to paragraph 7.  Notwithstanding the above, if the Escrow
Agent has not received an executed IRS Form W-9 is for such Pennsylvania
Subscriber, the Escrow Agent shall thereupon remit an amount to such
Pennsylvania Subscriber in accordance with the provisions hereof, withholding
the applicable percentage for backup withholding required by the Internal
Revenue Code, as then in effect, from any interest income earned on subscription
proceeds (determined in accordance with paragraph 7) attributable to such
Pennsylvania Subscriber.  However, the Escrow Agent shall not be
required to remit such payments until the Escrow Agent has collected funds
represented by such payments.

    

    (d)           The
subscription funds of Pennsylvania Subscribers who do not request the return of
their subscription funds within the Request Period shall remain in the
Pennsylvania Escrow Account for successive 120-day escrow periods (a “Successive Escrow
Period”), each commencing automatically upon the termination of the prior
Successive Escrow Period, and the Company and Escrow Agent shall follow the
notification and payment procedure set forth in subparagraph 3(c) above with
respect to the Initial Escrow Period for each Successive Escrow Period until the
occurrence of the earliest of (i) the Expiration Date, (ii) the receipt and
acceptance by the Company of subscriptions for the purchase of Stock with total
purchase proceeds that equal or exceed the Pennsylvania Required Capital and the
disbursement of the Pennsylvania Escrow Account on the terms specified herein,
or (iii) all funds held in the Pennsylvania Escrow Account having been returned
to the Pennsylvania Subscribers in accordance with the provisions
hereof.

     

    
      
         

      

      
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    (e)           
If the Company rejects any subscription for which the Escrow Agent has collected
funds, the Escrow Agent shall, upon the written request of the Company, promptly
issue a refund to the rejected Subscriber at the address provided by the Dealer
Manager or the Company, which the Escrow Agent shall be entitled to rely
upon.  If the Company rejects any subscription for which the Escrow
Agent has not yet collected funds but has submitted the Subscriber’s check for
collection, the Escrow Agent shall promptly return the funds in the amount of
the Subscriber’s check to the rejected Subscriber, at the address provided by
the Dealer Manager or the Company or their respective agents, which the Escrow
Agent shall be entitled to rely upon, after such funds have been
collected.  If the Escrow Agent has not yet submitted a rejected
Subscriber’s check for collection, the Escrow Agent shall promptly remit the
Subscriber’s check directly to the Subscriber.

    

    (f)           At
any time after funds are disbursed upon the Company’s acceptance of
subscriptions pursuant to subparagraph 3(a) above on the fifth business day
following the first business day of the next succeeding month following the date
of such acceptance, the Escrow Agent shall promptly provide directly to each
Subscriber the amount of the interest payable to the Subscribers; provided that
the Escrow Agent is in possession of such Subscriber’s executed IRS Form
W-9.  In the event an executed IRS Form W-9 is not received for each
Subscriber the Escrow Agent shall remit an amount to the Subscribers in
accordance with the provisions hereof, withholding the applicable percentage for
backup withholding required by the Internal Revenue Code, as then in effect,
from any interest income on subscription proceeds (determined in accordance with
paragraph 7) attributable to those Subscribers for whom the Escrow Agent does
not possess an executed IRS Form W-9.  However, the Escrow Agent shall
not be required to remit any payments until the Escrow Agent has collected funds
represented by such payments.  The forgoing notwithstanding, interest,
if any, earned on accepted subscription proceeds will be payable to a Subscriber
only if the Subscriber’s funds have been held in escrow by the Escrow Agent for
at least 35 days; interest, if any, earned on accepted subscription proceeds of
Subscribers’ funds held less than 35 days will be payable to the
Company.

    

    In the
event that instruments of payment are returned for nonpayment, the Escrow Agent
is authorized to debit the Escrow Account, the Tennessee Escrow Account or the
Pennsylvania Escrow Account, as applicable, in accordance with paragraph 2
hereof.

    

    4.           The
Escrow Agent shall provide to the Company monthly statements (or more frequently
as reasonably requested by the Company, which includes, without limitation, if
such amounts are not available to the Company at least daily pursuant to the
“TrustDirect” program) on the account balance in each of the Escrow Account, the
Tennessee Escrow Account and the Pennsylvania Escrow Account, and the activity
in such accounts since the last report.  The Escrow Agent will provide
access to its “TrustDirect” program to allow the Company to view account
balances for the Escrow Account, the Tennessee Escrow Account and the
Pennsylvania Escrow Account at any time.

    

    5.           Prior
to the disbursement of funds deposited in the Escrow Account, the Tennessee
Escrow Account or the Pennsylvania Escrow Account in accordance with the
provisions of paragraph 3 hereof, the Escrow Agent shall invest all of the funds
deposited as well as earnings and interest derived therefrom in the Escrow
Account, the Tennessee Escrow Account or the Pennsylvania Escrow Account, as
applicable, in the “Short-Term Investments” specified below at the written
direction of the Company, unless the costs to the Company for the making of such
investment are reasonably expected to exceed the anticipated interest earnings
from such investment in which case the funds and interest thereon shall remain
in the respective escrow account until the balance in the respective escrow
account reaches the minimum amount necessary for the anticipated interest
earnings from such investment to exceed the costs to the Company for the making
of such investment, as determined by the Company based upon applicable interest
rates.

     

    
      
         

      

      
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    “Short-Term
Investments” include obligations of, or obligations guaranteed by, the United
States government or bank money-market accounts or certificates of deposit of
national or state banks that have deposits insured by the Federal Deposit
Insurance Corporation (including certificates of deposit of any bank acting as a
depository or custodian for any such funds) which mature on or before the
Expiration Date, unless such instrument cannot be readily sold or otherwise
disposed of for cash by the Expiration Date without any dissipation of the
offering proceeds invested.  Without limiting the generality of the
foregoing, Exhibit B hereto
sets forth specific Short-Term Investments that shall be deemed permissible
investments hereunder.

    

    The
following securities are not permissible investments:

    

    
      	
            	
              (a) 

            	
              money
      market funds;

            

    

    
      	
            	
              (b) 

            	
              corporate
      equity or debt securities;

            

    

    
      	
            	
              (c) 

            	
              repurchase
      agreements;

            

    

    
      	
            	
              (d) 

            	
              bankers’
      acceptances;

            

    

    
      	
            	
              (e) 

            	
              commercial
      paper; and

            

    

    
      	
            	
              (f) 

            	
              municipal
      securities.

            

    

    

    It is
hereby expressly agreed and stipulated by the parties hereto that the Escrow
Agent shall not be required to exercise any discretion hereunder and shall have
no investment or management responsibility and, accordingly, shall have no duty
to, or liability for its failure to, provide investment recommendations or
investment advice to the parties hereto.  It is the intention of the
parties hereto that the Escrow Agent shall never be required to use, advance or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties or the exercise of any of its rights and powers
hereunder.

    

    6.           The
Escrow Agent is entitled to rely upon written instructions received from the
Company or the Dealer Manager or their respective agents, unless the Escrow
Agent has actual knowledge that such instructions are not valid or genuine;
provided that, if in the Escrow Agent’s opinion, any instructions from the
Company or the Dealer Manager or their respective agents are unclear, the Escrow
Agent may request clarification from the Company or the Dealer Manager or their
respective agents, as applicable, prior to taking any action, and if such
instructions continue to be unclear, the Escrow Agent may rely upon written
instructions from the Company’s legal counsel in distributing or continuing to
hold any funds.  However, the Escrow Agent shall not be required to
disburse any funds attributable to instruments of payment that have not been
processed for collection, until such funds are collected and then shall disburse
such funds in compliance with the disbursement instructions from the Company or
the Dealer Manager or their respective agents.

    

    7.           If
the Offering terminates prior to receipt of the Required Capital, or, with
respect to the Tennessee Subscribers or Pennsylvania Subscribers or one or more
Pennsylvania Subscribers elects to have his or her subscription returned in
accordance with paragraph 3, interest income earned on subscription proceeds
deposited in the Escrow Account (the “Escrow Income”), the
Tennessee Escrow Account (the “Tennessee Escrow
Income”) or the Pennsylvania Escrow Account (the “Pennsylvania Escrow
Income”), as applicable, shall be remitted to Subscribers to the address
provided by the Dealer Manager or the Company to the Escrow Agent, which the
Escrow Agent shall be entitled to rely upon, in accordance with paragraph 3 and
without any deductions for escrow expenses.  The Company shall
reimburse the Escrow Agent for all escrow expenses.  If the Escrow
Agent remits interest income pursuant to this Agreement, the Escrow Agent shall
be responsible for any necessary federal tax reporting associated with such
income; provided, however, that the Escrow Agent shall not be responsible for
any other tax reporting associated with this Agreement.  The Escrow
Agent shall remit all such Escrow Income, Tennessee Escrow Income and
Pennsylvania Escrow Income in accordance with paragraph 3.  If the
Company chooses to leave the Escrow Account open after receiving the Required
Capital then it shall make regular acceptances of subscriptions therein, but no
less frequently than monthly.

     

    
      
         

      

      
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    8.           The
Escrow Agent shall receive compensation from the Company as set forth in Exhibit C attached
hereto, which such Exhibit C is hereby
incorporated by reference.

    

    9.           In
performing any of its duties hereunder, the Escrow Agent shall not incur any
liability to anyone for any damages, losses, or expenses, except for willful
misconduct, breach of trust, or gross negligence.  Accordingly, the
Escrow Agent shall not incur any such liability with respect to any action taken
or omitted (a) in good faith upon advice of the Escrow Agent’s counsel given
with respect to any questions relating to the Escrow Agent duties and
responsibilities under this Agreement, or (b) in reliance upon any instrument,
including any written instrument or instruction provided for in this Agreement,
not only as to its due execution and validity and effectiveness of its
provisions but also as to the truth and accuracy of information contained
therein, which the Escrow Agent shall in good faith believe to be genuine, to
have been signed or presented by a proper person or persons and to conform to
the provisions of this Agreement.

    

    10.           The
Company hereby agrees to indemnify and hold the Escrow Agent harmless against
any and all losses, claims, damages, liabilities, and expenses, including
reasonable attorneys’ fees and disbursements, that may be imposed on or incurred
by the Escrow Agent in connection with acceptance of appointment as the Escrow
Agent hereunder, or the performance of the duties hereunder, including any
litigation arising from this Agreement or involving the subject matter hereof,
except where such losses, claims, damages, liabilities, and expenses result from
willful misconduct, breach of trust, or gross negligence.

    

    11.           In
the event of a dispute between the parties hereto sufficient in the Escrow
Agent’s discretion to justify doing so, the Escrow Agent shall be entitled to
tender into the registry or custody of any court of competent jurisdiction all
money or property in its hands under this Agreement, together with such legal
pleadings as deemed appropriate, and thereupon be discharged from all further
duties and liabilities under this Agreement. In the event of any uncertainty as
to the duties hereunder, the Escrow Agent may refuse to act under the provisions
of this Agreement pending order of a court of competent jurisdiction and shall
have no liability to the Company or to any other person as a result of such
action.  Any such legal action may be brought in such court, as the
Escrow Agent shall determine to have jurisdiction thereof.  The filing
of any such legal proceedings shall not deprive the Escrow Agent of its
compensation earned prior to such filing.

    

    12.           All
communications and notices required or permitted by this Agreement shall be in
writing and shall be deemed to have been given when delivered personally or by
messenger or by overnight delivery service or when received via telecopy or
other electronic transmission, in all cases addressed to the person for whom it
is intended at such person’s address set forth below or to such other address as
a party shall have designated by notice in writing to the other party in the
manner provided by this paragraph:

    

    (a)           if
to the Company:

    

    Carter
Validus Mission Critical REIT, Inc.

    4211 West
Boy Scout Blvd., Suite 500

    Tampa,
Florida 33607

    Fax:  (813)
287-0397

    Attention:
John E. Carter

     

    
      
         

      

      
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    with a
copy to:

    

    Carter
Validus Mission Critical REIT, Inc.

    4211 West
Boy Scout Blvd., Suite 500

    Tampa,
Florida 33607

    Fax:  (813)
287-0397

    Attention:
Lisa Drummond

    

    (b)           if
to the Dealer Manager:

    

    SC
Distributors, LLC

    4 San
Joaquin, Ste. 130

    Newport
Beach, CA 92660

    Fax:  _____________

    Attention:  Patrick
J. Miller

    

    (c)           if
to the Escrow Agent:

    

    UMB Bank,
N.A.

    1010
Grand Blvd., 4th
Floor

    Mail
Stop: 1020409

    Kansas
City, MO 64106

    Attention:

    

    Each
party hereto may, from time to time, change the address to which notices to it
are to be delivered or mailed hereunder by notice in accordance herewith to the
other parties.

    

    13.           This
Agreement shall be governed by the laws of the State of Florida as to both
interpretation and performance without regard to the conflict of laws rules
thereof.

    

    14.           The
provisions of this Agreement shall be binding upon the legal representatives,
successors, and assigns of the parties hereto.

    

    15.           The
Company and the Dealer Manager hereby acknowledge that UMB Bank, N.A. is serving
as Escrow Agent only for the limited purposes herein set forth, and hereby agree
that they will not represent or imply that, by serving as Escrow Agent hereunder
or otherwise, have investigated the desirability or advisability of investment
in the Company or have approved, endorsed, or passed upon the merits of the
Stock or the Company, nor shall they use the name of the Escrow Agent in any
manner whatsoever in connection with the offer or sale of the Stock other than
by acknowledgment that is has agreed to serve as Escrow Agent for the limited
purposes herein set forth.

    

    16.           This
Agreement and any amendment hereto may be executed by the parties hereto in one
or more counterparts, each of which shall be deemed to be an
original.

    

    17.           In
the event that the Dealer Manager receives instruments of payment after the
Required Capital, the Tennessee Required Capital or the Pennsylvania Required
Capital, as applicable, has been received and the proceeds of the Escrow
Account, the Tennessee Escrow Account or the Pennsylvania Capital Account, as
applicable, have been distributed to the Company, the Escrow Agent is hereby
authorized to deposit such instruments of payment within one (1) business day to
any deposit account as directed by the Company.  The application of
said funds into a deposit account or to forward such funds directly to the
Company, in either case directed by the Company shall be a full acquittance to
the Escrow Agent, who shall not be responsible for the application of said funds
thereafter.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    18.           The
Escrow Agent shall be bound only by the terms of this Escrow Agreement and shall
not be bound by or incur any liability with respect to any other agreements or
understanding between any other parties, whether or not the Escrow Agent has
knowledge of any such agreements or understandings.

    

    19.           Indemnification
provisions set forth herein shall survive the termination of this
Agreement.

    

    20.           In
the event that any part of this Agreement is declared by any court or other
judicial or administrative body to be null, void, or unenforceable, said
provision shall survive to the extent it is not so declared, and all of the
other provisions of this Agreement shall remain in full force and
effect.

    

    21.           Unless
otherwise provided in this Agreement, final termination of this Escrow Agreement
shall occur on the date that all funds held in the Escrow Account, the Tennessee
Escrow Account and the Pennsylvania Escrow Account are distributed either (a) to
the Company or to Subscribers and the Company has informed the Escrow Agent in
writing to close the Escrow Account and the Pennsylvania Escrow Account pursuant
to paragraph 3 hereof or (b) to a successor escrow agent upon written
instructions from the Company.

    

    22.           Neither
the Escrow Agent, nor its agents, shall have responsibility for accepting,
rejecting, or approving subscriptions.  The Escrow Agent, or its
agent, shall complete an OFAC search, in compliance with its policy and
procedures, of each subscription check and shall inform the Company if a
subscription check fails the OFAC search.  The Dealer Manager shall
provide a copy of each subscription check in order that the Escrow Agent, or its
agent, may perform such OFAC search.

    

    23.           This
Agreement shall not be modified, revoked, released, or terminated unless reduced
to writing and signed by all parties hereto, subject to the following
paragraph.

    

    If, at
any time, any attempt is made to modify this Agreement in a manner that would
increase the duties and responsibilities of the Escrow Agent or to modify this
Agreement in any manner which the Escrow Agent shall deem undesirable, or at any
other time, the Escrow Agent may resign by providing written notice to the
Company and until (a) the acceptance by a successor escrow agent as shall be
appointed by the Company; or (b) thirty (30) days after such written notice has
been given, whichever occurs sooner, the Escrow Agent’s only remaining
obligation shall be to perform its duties hereunder in accordance with the terms
of the Agreement.

    

    24.           The
Escrow Agent may resign at any time from its obligations under this Escrow
Agreement by providing written notice to the Company.  Such
resignation shall be effective on the date specified in such notice, which shall
be not less than thirty (30) days after such written notice has been
given.  The Escrow Agent shall have no responsibility for the
appointment of a successor escrow agent.

    

    25.           The
Escrow Agent may be removed for cause by the Company by written notice to the
Escrow Agent effective on the date specified in such written
notice.  The removal of the Escrow Agent shall not deprive the Escrow
Agent of its compensation earned prior to such removal.

    

    26.           The
Company shall provide to Escrow Agent any documentation and information
reasonably requested by the Escrow Agent for it to comply with the USA Patriot
Act of 2001, as amended from time to time.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    

    

    

    [Signature
page follows]

     

     

     

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    Agreed to
as of the ___ day of _________, 2010.

    

    

     

    
      	 	      
              CARTER
      VALIDUS MISSION CRITICAL REIT, INC.

              

              

              

              By:
      __________________________

                      John
      E. Carter, Chief Executive Officer

              

               

              SC
      DISTRIBUTORS, LLC

              

              

              

              By:
      __________________________

                      Patrick
      J. Miller, President

            

    

     

    The terms
and conditions contained above are hereby accepted and agreed to
by:

    

    UMB Bank, N.A., as Escrow Agent

    

    

    
      By:
__________________________
Name:
________________________                            

    Title:
_________________________

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    

    [Form of
Notice to Pennsylvania Subscribers]

    

    You have
tendered a subscription to purchase shares of common stock of Carter Validus
Mission Critical REIT, Inc. (the “Company”).  Your subscription is
currently being held in escrow.  The guidelines of the Pennsylvania
Securities Commission do not permit the Company to accept subscriptions from
Pennsylvania residents until an aggregate of $86,875,000 of gross offering
proceeds have been received by the Company.  The Pennsylvania
guidelines provide that until this minimum amount of offering proceeds is
received by the Company, every 120 days during the offering period Pennsylvania
Subscribers may request that their subscription be returned.

    

    If you
wish to continue your subscription in escrow until the Pennsylvania minimum
subscription amount is received, nothing further is required.

    

    If you
wish to terminate your subscription for the Company’s common stock and have your
subscription returned please so indicate below, sign, date, and return to the
Escrow Agent, UMB Bank, N.A.

    

    I hereby
terminate my prior subscription to purchase shares of common stock of Carter
Validus Mission Critical REIT, Inc. and request the return of my subscription
funds.  I certify to Carter Validus Mission Critical REIT, Inc. that I
am a resident of Pennsylvania.

    

    

     

    
      	 	      
              Signature:
      ___________________________

              

              Name:        ___________________________        

                                             
      (please print)

              

              Date:         
      ___________________________

            
	 	 
	 	 

    

     

    Please
send the subscription refund to:

     

    ________________________________________
________________________________________
________________________________________
________________________________________

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    EXHIBIT
B

    

    PERMISSIBLE
ESCROW INVESTMENTS

    

    

    
      	
               
      

            	
              (i)

            	
              Bank
      accounts;

            

    

    
      	
               
      

            	
              (ii)

            	
              Bank
      money-market accounts;

            

    

    
      	
               
      

            	
              (iii)

            	
              Short
      time certificates of deposit issued by a bank;
  and

            

    

    
      	
               
      

            	
              (iv)

            	
              Short-term
      securities issued or guaranteed by the U.S.
  government

            

    

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
C

    

    

    ESCROW
FEES AND EXPENSESUnassociated Document

    ADVISORY
AGREEMENT

     

    This
ADVISORY AGREEMENT (this “Agreement”) is entered into on
this the __ day of _____________, 2010, by and between CARTER VALIDUS MISSION
CRITICAL REIT, INC., a Maryland corporation (the “Company”), and CARTER/VALIDUS
ADVISORS, LLC, a Delaware limited liability company (the “Advisor”).

     

    W
I T N E S S E T H

     

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

     

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

     

    WHEREAS, the Company desires
to avail itself of the experience, sources of information, advice, assistance
and certain facilities available to the Advisor and to have the Advisor
undertake the duties and responsibilities hereinafter set forth, on behalf of,
and subject to the supervision of, the Board of Directors (the “Board”) of the
Company, all as provided herein; and

     

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

     

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

     

    ARTICLE
I

     

    DEFINITIONS

     

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

     

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

     

    Acquisition
Fees.  Any and all fees and commissions, exclusive of
Acquisition Expenses but including the Acquisition and Advisory Fees, paid by
any Person to any other Person (including any fees or commissions paid by or to
any Affiliate of the Company or the Advisor) in connection with making or
investing in Mortgages or the purchase, development or construction of an Asset,
including, without limitation, real estate commissions, selection fees,
Development Fees, Construction Fees, non-recurring management fees, loan fees,
points or any other fees of a similar nature.  Excluded shall be
Development Fees and Construction Fees paid to any Person not affiliated with
the Sponsor in connection with the actual development and construction of any
Property.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Acquisition
and Advisory Fees.  The fees payable to the Advisor pursuant to
Section 3.01(b) of this Agreement.

     

    Advisor.  Carter/Validus
Advisors, LLC, a Delaware limited liability company, any successor advisor to
the Company, or any Person to which Carter/Validus Advisors, LLC, or any
successor advisor subcontracts all or substantially all of its
functions.

     

    Affiliate or Affiliated.  As
to any Person, (i) any Person directly or indirectly owning, controlling, or
holding, with the power to vote, 10% or more of the outstanding voting
securities of such Person; (ii) any Person 10% or more of whose outstanding
voting securities are directly or indirectly owned, controlled, or held, with
power to vote, by such other Person; (iii) any Person, directly or indirectly,
controlling, controlled by, or under common control with such Person; (iv) any
executive officer, director, trustee or general partner of such Person; and (v)
any legal entity for which such Person acts as an executive officer, director,
trustee or general partner.

     

    Aggregate
Assets Value.  The aggregate book value of the Assets at the
time of measurement before deducting depreciation, bad debts or other similar
non-cash reserves and without reduction for any debt secured by or relating to
such assets; provided, however, that during such periods in which the Board is
determining on a regular basis the current value of the Company’s net assets for
purposes of enabling fiduciaries of employee benefit plan stockholders to comply
with applicable Department of Labor reporting requirements, “Aggregate Assets
Value” will equal the greater of (i) the amount determined pursuant to the
foregoing or (ii) the most recent Assets’ aggregate valuation established by the
Board  without reduction for depreciation, bad debts or other non-cash
reserves and without reduction for any debt secured by or relating to such
assets.

     

    Appraised
Value.  Value according to an appraisal made by an Independent
Appraiser.

     

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

     

    Assets.  Properties,
Mortgages and other direct or indirect investments in equity interests in, or
loans secured by, Real Property (other than investments in bank accounts, money
market funds or other current assets, whether of the proceeds from an Offering
or the sale of an Asset or otherwise) owned by the Company, directly or
indirectly through one or more of its Affiliates.

     

    Asset
Management Fee.  The fee payable to the Advisor for day-to-day
professional management services in connection with the Company and its
investments in Assets pursuant to this Agreement.

     

    Average
Invested Assets.  For a specified period, the average of the
aggregate book value of the Assets, before deducting depreciation, bad debts or
other similar non-cash reserves, computed by taking the average of such values
at the end of each month during such period; provided, however, that during such
periods in which the Board is determining on a regular basis the current value
of the Company’s net assets for purposes of enabling fiduciaries of employee
benefit plan stockholders to comply with applicable Department of Labor
reporting requirements, and solely for such purpose, “Average Invested Assets”
will equal the greater of (i) the amount determined pursuant to the foregoing or
(ii) the most recent Assets’ aggregate valuation established by the Board
without reduction for depreciation, bad debts or other non-cash
reserves.

     

    Board.  The
Board of Directors of the Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

    Company.  Carter
Validus Mission Critical REIT, Inc., a corporation organized under the laws of
the State of Maryland.

     

    Competitive
Real Estate Commission.  A real estate or brokerage commission
paid or, if no such commission is paid, the amount that customarily would be
paid, for the purchase or sale of a Property which is reasonable, customary, and
competitive in light of the size, type and location of the
Property.

     

    Construction
Fee.  A fee or other remuneration for acting as general
contractor and/or construction manager to construct improvements, supervise and
coordinate projects or to provide major repairs or rehabilitations on a
Property.

     

    Contract
Purchase Price.  The amount actually paid or allocated in
respect of the purchase, development, construction or improvement of an Asset,
or the amount of funds advanced with respect to a Mortgage, exclusive of
Acquisition Fees and Acquisition Expenses.

     

    Contract
Sales Price.  The total consideration provided for in the sales
contract for the sale of a Property.

     

    Dealer
Manager.  SC Distributors, LLC, an Affiliate of the Advisor, or
such Person selected by the Board to act as the dealer manager for an
Offering.

     

    Development
Fee.  A fee for the packaging of a Property or Mortgage,
including the negotiation and approval of plans, and any assistance in obtaining
zoning and necessary variances and financing for a specific Property, either
initially or at a later date.

     

    Director.  A
member of the Board of Directors.

     

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

     

    Financing
Coordination Fee.    The fees payable to the Advisor
pursuant to Section 3.01(g) of this Agreement.

     

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Independent
Appraiser.  A Person with no material current or prior business
or personal relationship with the Advisor or the Directors and who is a
qualified appraiser of Real Property of the type held by the Company or of other
Assets as determined by the Board.  Membership in a nationally
recognized appraisal society such as the American Institute of Real Estate
Appraisers or the Society of Real Estate Appraisers shall be conclusive evidence
of such qualification as to Real Property.

     

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

     

    Invested
Capital.  The amount calculated by multiplying the total number
of Shares purchased by Stockholders by the issue price at the time of such
purchase, reduced by the portion of any Distribution that is attributable to Net
Sales Proceeds and by any amounts paid by the Company to repurchase Shares
pursuant to the Company’s plan for repurchase of Shares.

     

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

     

    Listing or Listed.  The
approval of the Company’s application to list the Shares by a national
securities exchange and the commencement of trading in the Shares on the
respective national securities exchange.  Upon such Listing, the
Shares shall be deemed Listed.

     

    Market
Value.  Upon Listing, the market value of the outstanding
Shares, measured by taking the average closing price for a single Share over a
period of 30 consecutive trading days, with such period beginning
180 days after Listing, multiplying that number by the number of Shares
outstanding on the date of measurement.

     

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

     

    
      
        
        

      

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

     

    Net
Income.  For any period, the Company’s total revenues
applicable to such period, less the total expenses applicable to such period
other than additions to reserves for depreciation, bad debts or other similar
non-cash reserves and excluding any gain from the sale of the
Assets.  If the Advisor is paid a Subordinated Incentive Listing Fee,
“Net Income” for purposes of calculating Total Operating Expenses, shall exclude
the gain from the Sale of any Assets.

     

    Net Sales
Proceeds.  In the case of a transaction described in clause (A)
of the definition of Sale, the proceeds of any such transaction less the amount
of selling expenses incurred by or on behalf of the Company, including all real
estate commissions, closing costs and legal fees and expenses. In the case of a
transaction described in clause (B) of such definition, Net Sales Proceeds means
the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Company, including any legal fees and expenses
and other selling expenses incurred in connection with such transaction. In the
case of a transaction described in clause (C) of such definition, Net Sales
Proceeds means the proceeds of any such transaction actually distributed to the
Company from the Joint Venture less the amount of any selling expenses,
including legal fees and expenses incurred by or on behalf of the Company (other
than those paid by the Joint Venture).  In the case of a transaction
or series of transactions described in clause (D) of the definition of Sale, Net
Sales Proceeds means the proceeds of any such transaction (including the
aggregate of all payments under a Mortgage or in satisfaction thereof other than
regularly scheduled interest payments) less the amount of selling expenses
incurred by or on behalf of the Company, including all commissions, closing
costs and legal fees and expenses.  In the case of a transaction
described in clause (E) of such definition, Net Sales Proceeds means the
proceeds of any such transaction less the amount of selling expenses incurred by
or on behalf of the Company, including any legal fees and expenses and other
selling expenses incurred in connection with such transaction. In the case of a
transaction described in the last sentence of the definition of Sale, Net Sales
Proceeds means the proceeds of such transaction or series of transactions less
all amounts generated thereby which are reinvested in one or more Assets within
180 days thereafter and less the amount of any real estate commissions, closing
costs, and legal fees and expenses and other selling expenses incurred by or
allocated to the Company in connection with such transaction or series of
transactions.  Net Sales Proceeds shall also include any consideration
(including non-cash consideration such as stock, notes, or other property or
securities) that the Company determines, in its discretion, to be economically
equivalent to proceeds of a Sale, valued in the reasonable determination of the
Company. Net Sales Proceeds shall not include any reserves established by the
Company in its sole discretion.

     

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

     

    Operating
Expenses.  All costs and expenses paid or incurred by the
Company, as determined under generally accepted accounting principles, which are
in any way related to the operation of the Company or to Company business,
including the Asset Management Fee, but excluding (i) the expenses of raising
capital such as Organization and Offering Expenses, legal, audit, accounting,
underwriting, brokerage, listing, registration, and other fees, printing and
other such expenses and tax incurred in connection with the issuance,
distribution, transfer, registration and Listing of the Shares, (ii) interest
payments, (iii) taxes, (iv) non-cash expenditures such as depreciation,
amortization and bad debt reserves, (v) the Subordinated Share of Net Sales
Proceeds, (vi) the Performance Fee, (vii) the Subordinated Incentive Listing
Fee, (viii) Acquisition Fees and Acquisition Expenses, (ix) real estate
commissions on the Sale of Property, and (x) other fees and expenses connected
with the acquisition, disposition, management and ownership of real estate
interests, mortgage loans or other property (including the costs of foreclosure,
insurance premiums, legal services, maintenance, repair and improvement of
property).

     

    
      
        
        

      

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

     

    Partnership.  Carter/Validus
Operating Partnership, LP, a Delaware limited partnership, through which the
Company may own Assets.

     

    Performance
Fee.  The fee payable to the Advisor upon termination of this
Agreement under certain circumstances if certain performance standards have been
met pursuant to Section 4.03(b) or (c) of this Agreement.

     

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

     

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

     

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

     

    Real
Estate Commission.  The fee payable to the Advisor for services
provided in connection with the Sale of one or more Properties pursuant to
Section 3.01(c).

     

    Real
Property.  Land, rights in land (including leasehold
interests), and any buildings, structures, improvements, furnishings, fixtures
and equipment located on or used in connection with land and rights or interests
in land.

     

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

     

    Sale or Sales.  Any
transaction or series of transactions whereby: (A) the Company or the
Partnership directly or indirectly (except as described in other subsections of
this definition) sells, grants, transfers, conveys, or relinquishes its
ownership of any Property or portion thereof, including the lease of any
Property consisting of a building only, and including any event with respect to
any Property which gives rise to a significant amount of insurance proceeds or
condemnation awards; (B) the Company or the Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants,
transfers, conveys, or relinquishes its ownership of all or substantially all of
the interest of the Company or the Partnership in any Joint Venture in which it
is a co-venturer or partner; (C) any Joint Venture directly or indirectly
(except as described in other subsections of this definition) in which the
Company or the Partnership as a co-venturer or partner sells, grants, transfers,
conveys, or relinquishes its ownership of any Property or portion thereof,
including any event with respect to any Property which gives rise to insurance
claims or condemnation awards; (D) the Company or the Partnership directly or
indirectly (except as described in other subsections of this definition) sells,
grants, conveys or relinquishes its interest in any Mortgage or portion thereof
(including with respect to any Mortgage, all repayments thereunder or in
satisfaction thereof other than regularly scheduled interest payments) and any
event with respect to a Mortgage which gives rise to a significant amount of
insurance proceeds or similar awards; or (E) the Company or the Partnership
directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes its ownership of
any other Asset not previously described in this definition or any portion
thereof.  Notwithstanding the foregoing, “Sale” or “Sales” shall not
include any transaction or series of transactions specified in clause (A)
through (E) above in which the proceeds of such transaction or series of
transactions are reinvested in one or more Assets within 180 days
thereafter.

     

    
      
        
        

      

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

     

    Selling
Commissions.  Any and all commissions payable to underwriters,
dealer managers or other broker-dealers in connection with the sale of the
Shares, including, without limitation, commissions payable to SC Distributors,
LLC.

     

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

     

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

     

    Sponsor.  Carter/Validus
REIT Investment Management, LLC, a Delaware limited liability company, which is
directly or indirectly controlled by John Carter and Mario Garcia,
Jr.

     

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

     

    Stockholders’
8.0% Return.  As of any date, an aggregate amount equal to an
8.0% cumulative, non-compounded, annual return on Invested Capital.

     

    Subordinated
Incentive Listing Fee.  The fee payable to the Advisor under
certain circumstances if the Shares are Listed pursuant to Section
3.01(e).

     

    Subordinated
Share of Net Sales Proceeds.  The fee payable to the Advisor
under certain circumstances following receipt of Net Sales Proceeds pursuant to
Section 3.01(d).

     

    Termination
Date.  The date of termination of this Agreement.

     

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

     

    
      
        
        

      

      
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    ARTICLE
II

     

    THE
ADVISOR

     

    2.01   
 Appointment.  The Company
hereby appoints the Advisor to serve as its advisor on the terms and conditions
set forth in this Agreement, and the Advisor hereby accepts such
appointment.

     

    2.02   
 Duties of
the Advisor.  Subject to
Section 2.07, the Advisor undertakes to use its commercially reasonable best
efforts to present to the Company investment opportunities consistent with the
investment objectives and policies of the Company as determined and adopted from
time to time by the Board.  In performance of this undertaking,
subject to the supervision of the Board and consistent with the provisions of
the Company’s most recent Prospectus for Shares, Articles of Incorporation and
Bylaws, the Advisor shall, either directly or by engaging a duly qualified and
licensed Affiliate of the Advisor or other duly qualified and licensed
Person:

     

    (a)   
 Find,
evaluate, present and recommend to the Company investment opportunities
consistent with the Company’s investment policies and objectives;

     

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

     

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

     

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

     

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

     

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

     

    (g)   
 review
and analyze the operating and capital budgets prepared and submitted by a third
party for each property;

     

    
      
        
        

      

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

     

    (i)   
 provide
the Board with periodic reports regarding prospective investments in
Assets;

     

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

     

    (k)   
 obtain
the prior approval of the Board (including a majority of all Independent
Directors) for any and all investments in Assets with a Contract Purchase Price
equal to or greater than $15,000,000;

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    2.03   
 Authority
of Advisor.  Pursuant to the
terms of this Agreement Including the duties set forth in Section 2.02 and the
restrictions included in this Section 2.03 and in Section 2.06, and subject to
the continuing  and exclusive authority of the Board over the
management of the Company, the Board hereby delegates to the Advisor the
authority to (i) locate, analyze and select investment opportunities for the
Company and the Partnership, (ii) structure the terms and conditions of
transactions pursuant to which investments will be made or acquired for the
Company or the Partnership, (iii) acquire Properties, make and acquire Mortgages
and other loans and invest in other Assets in compliance with the investment
objectives and policies of the Company, (iv) arrange for financing and
refinancing of Assets, (v) enter into leases for the Properties and service
contracts for the Assets with duly qualified and licensed non-affiliated and
Affiliated Persons, including oversight of non-affiliated and Affiliated Persons
that perform property management, acquisition, advisory, disposition or other
services for the Company, and (vi) arrange for, or provide, accounting and other
record-keeping functions at the Asset level.

     

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

     

    2.04   
 Bank
Accounts.  The Advisor may
establish and maintain one or more bank accounts in its own name for the account
of the Company or in the name of the Company and may collect and deposit into
any such account or accounts, and disburse from any such account or accounts,
any money on behalf of the Company, under such terms and conditions as the Board
may approve, provided that no funds of the Company or the Partnership shall be
commingled with the funds of the Advisor; and the Advisor shall from time to
time, upon request by the Board, its Audit Committee or the auditors of the
Company, render appropriate accountings of such collections and payments to the
Board, its Audit Committee and the auditors of the Company.

     

    2.05   
 Records;
Access.  The Advisor shall
maintain appropriate records of all its activities hereunder and make such
records available for inspection by the Board and by counsel, auditors and
authorized agents of the Company, at any time or from time to time, upon
reasonable request, during normal business hours.  The Advisor shall
at all reasonable times have access to the books and records of the
Company.

     

    2.06   
 Limitations
on Activities.  Anything else in
this Agreement to the contrary notwithstanding, the Advisor shall refrain from
taking any action which, in its sole judgment made in good faith, would
(a) adversely affect the status of the Company as a REIT, (b) subject
the Company to regulation under the Investment Company Act of 1940, as amended,
(c) violate any law, rule, regulation or statement of policy of any
governmental body or agency having jurisdiction over the Company, the Shares or
its other securities, or (d) not be permitted by the Articles of
Incorporation or Bylaws, except if such action shall be ordered by the Board, in
which case the Advisor shall notify promptly the Board of the Advisor’s judgment
of the potential impact of such action and shall refrain from taking such action
until it receives further clarification or instructions from the
Board.  In such event the Advisor shall have no liability for acting
in accordance with the specific instructions of the Board so
given.  Notwithstanding the foregoing, the Advisor, its directors,
officers, employees and stockholders, and the directors, officers, employees and
stockholders of the Advisor’s Affiliates shall not be liable to the Company or
to the Board or Stockholders for any act or omission by the Advisor, its
directors, officers, employees or stockholders, or for any act or omission of
any Affiliate of the Advisor, its directors, officers, employees or
stockholders, except as provided in Section 5.02 of this Agreement.

     

    
      
        
        

      

      
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    2.07   
 Other
Activities of the Advisor.  Nothing herein
contained shall prevent the Advisor or its Affiliates from engaging in other
activities, including, without limitation, the rendering of advice to other
Persons (including other REITs) and the management of other programs advised,
sponsored or organized by the Advisor or its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, employee, or
stockholder of the Advisor or its Affiliates to engage in any other business or
to render services of any kind to any other Person.  The Advisor may,
with respect to any investment in which the Company is a participant, also
render advice and service to each and every other participant
therein.  The Advisor shall report to the Board the existence of any
condition or circumstance, existing or anticipated, of which it has knowledge,
which creates or could create a conflict of interest between the Advisor’s
obligations to the Company and its obligations to or its interest in any other
Person.  The Advisor or its Affiliates shall promptly disclose to the
Board knowledge of such condition or circumstance.  The Advisor shall
inform the Board at least quarterly of the investment opportunities that were
offered to other programs sponsored by the Sponsor, Advisor or any Director or
their Affiliates with similar investment objectives as the
Company’s.  If the Sponsor, Advisor, any
Director or Affiliates thereof have sponsored other investment programs with
similar investment objectives which have investment funds available at the same
time as the Company, it shall be the duty of the Board (including the
Independent Directors) to adopt the method set forth in the Company’s most
recent Prospectus for its Shares or another reasonable method by which
investments are to be allocated to the competing investment entities and to use
their best efforts to apply such method fairly to the
Company.

     

    ARTICLE
III

     

    COMPENSATION

     

    3.01     Fees.

     

    (a)   
 Asset Management
Fee.  The Company shall pay to the Advisor an Asset Management
Fee equal to 0.75% of the sum of the Contract Purchase Price, the Acquisition
Expenses[, Construction Fee] and other customarily capitalized costs but
excluding Acquisition Fees, quarterly in areas based on Assets held by the
Company on the last day of such quarter.

     

    (b)   
 Acquisition and Advisory
Fees.  The Company shall pay the Advisor, or an Affiliate of
the Advisor, a fee in the amount of 2.0% of the Contract Purchase Price of each
Asset  as Acquisition and Advisory Fees.  The total of all
Acquisition Fees and any Acquisition Expenses shall be limited in accordance
with the Articles of Incorporation and shall not exceed six percent (6%) of the
Contract Purchase Price.  Acquisition and Advisory Fees shall be paid as
follows: (1) for real property (including properties where
development/redevelopment is expected), at the time of acquisition, (2) for
development/redevelopment projects (other than the initial acquisition of the
real property), at the time a final budget is approved, and (3) for loans and
similar assets (including without limitation mezzanine loans), quarterly based
on the value of loans made or acquired.  In the case of a
development/redevelopment project subject to clause (2) above, upon completion
of the development/redevelopment project, the Advisor shall determine the actual
amounts paid.  To the extent the amounts actually paid vary from the
budgeted amounts on which the Acquisition and Advisory Fee was initially based,
the Advisor will pay or invoice the Company for 2.0% of the budget variance such
that the Acquisition and Advisory Fee is ultimately 2.0% of amounts expended on
such development/redevelopment project.  

     

    
      
        
        

      

      
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    (c)     Real Estate
Commission.  If the Advisor or an Affiliate of the Advisor
provides a substantial amount of the services (as determined by a majority of
the Independent Directors) in connection with the Sale of one or more
Properties, the Advisor or such Affiliate shall receive a Real Estate Commission
up to the lesser of 1.5% of the Contract Sales Price and one-half of the
brokerage commission paid if a third party broker is involved; provided,
however, that no Real Estate Commissions shall be payable to the Advisor for the
Sale of Properties if such Sale involves the Company selling all or
substantially all of its Properties in one or more transactions designed to
effectuate a business combination transaction (as opposed to a Company
liquidation, in which case the Real Estate Commissions would be payable if the
Advisor or an Affiliate of the Advisor provides a substantial amount of services
as provided above).  The Real Estate Commission may be paid in
addition to real estate commissions paid to non-Affiliates, provided that the
total real estate commissions paid to all Persons by the Company (including the
Real Estate Commission) shall not exceed an amount equal to the lesser of
(i) the Competitive Real Estate Commission or (ii) 6.0% of the Contract Sales
Price of a Property.

     

    (d)     Subordinated Share of Net
Sales Proceeds.  The Subordinated Share of Net Sales Proceeds
shall be payable to the Advisor in an amount equal to 15.0% of Net Sales
Proceeds remaining after the Stockholders have received Distributions equal to
the sum of the Stockholders’ 8.0% Return and 100% of Invested
Capital.  The Company shall have the option to pay such fee in the
form of cash, Shares, a promissory note, or any combination of the
foregoing.  In no event will the Company pay a Subordinated Share of
Net Sales Proceeds, including any interest payable in connection with any
promissory note issued by the Company in payment of the Subordinated Share of
Net Sales Proceeds, in excess of the amount that would be presumptively
reasonable under Section 9.7 of the Articles of Incorporation.

     

    (e)     Subordinated Incentive
Listing Fee.  Upon Listing, the Advisor shall be entitled to
the Subordinated Incentive Listing Fee in an amount equal to 15.0% of the amount
by which (i) the Market Value of the Company’s outstanding Shares plus
distributions paid by the Company prior to Listing, exceeds (ii) the sum of
(A) 100% of Invested Capital and (B) the total Distributions required to be paid
to the Stockholders in order to pay the Stockholders’ 8.0% Return from inception
through the date that Market Value is determined.  The Company shall
have the option to pay such fee in the form of cash, Shares, a promissory note,
or any combination of the foregoing.  If the Company pays such fee
with a promissory note, payment in full shall be made from the Net Sales
Proceeds of the first Sale completed by the Company after Listing, and interest
will accrue at a rate deemed fair and reasonable by the Board from and after the
date of Listing.  If the Net Sales Proceeds from the first Sale after
Listing are insufficient to pay the promissory note in full, including accrued
interest, then the promissory note shall be paid in part with such Net Sales
Proceeds, and in part from the Net Sales Proceeds from the next successive Sales
until the amount owing pursuant to such promissory note is paid in
full.  If the promissory note has not been paid in full within five
years from the date of Listing, then the Advisor, or its successors or assigns,
may elect to convert the unpaid balance, including accrued but unpaid interest,
into Shares at a price per Share equal to the average closing price of the
Shares over the ten trading days immediately preceding the date of such
election.  If the Shares are no longer Listed at such time as the
promissory note becomes convertible into Shares as provided by this paragraph,
then the price per Share, for purposes of conversion, shall equal the fair
market value for the Shares as determined by the Board based upon the Appraised
Value of the Assets as of the date of election.

     

    
      
        
        

      

      
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    (f)     Changes to Fee
Structure.  In the event of Listing, the Company and the
Advisor shall negotiate in good faith to establish a fee structure appropriate
for a perpetual-life entity.

     

    3.02     Expenses.

     

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

     

    (i)     Organization
and Offering Expenses; provided, however, that within 60 days after the end of
the month in which an Offering terminates, the Advisor shall reimburse the
Company for any Organization and Offering Expenses reimbursed by the Company to
the Advisor to the extent that such reimbursements exceed 1.25% of the Gross
Proceeds raised in the completed Offering.  The Advisor shall be
responsible for the payment of Organization and Offering Expenses in excess of
1.25% of the Gross Proceeds.  In the event the Company does not raise
the minimum amount of the Offering as set forth in the Prospectus, the Advisor
shall not be reimbursed for any Organization and Offering Expenses;

     

    (ii)     Acquisition
Expenses incurred in connection with the selection and acquisition of Assets in
an amount estimated to be up to 0.5% of the Contract Purchase Price, subject,
however, to the aggregate six percent (6%) cap on Acquisition Fees and
Acquisition Expenses set forth in Section 3.01(b);

     

    (iii)     the
actual cost of goods, services and materials used by the Company and obtained
from Persons not affiliated with the Advisor, other than Acquisition Expenses,
including brokerage fees paid in connection with the purchase and sale of
Shares;

     

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

     

    (v)     taxes and
assessments on income or property and taxes as an expense of doing
business;

     

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

     

    (vii)     expenses
of managing and operating Assets owned by the Company, whether payable to an
Affiliate of the Company or a non-affiliated Person;

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    (xiii)     administrative
service expenses, including all costs and expenses incurred by Advisor in
fulfilling its duties hereunder.  Such costs and expenses may include
reasonable wages and salaries and other employee-related expenses of all
employees of Advisor who are engage in the management, administration,
operations, and marketing of the Company, including taxes, insurance and
benefits relating to such employees, and legal, travel and other out-of-pocket
expenses which are directly related to their services provided hereunder;
and

     

    (xiv)     audit, accounting and legal fees.

     

    No
reimbursement shall be made for costs of personnel of the Advisor or its
Affiliates to the extent that such personnel perform services in connection with
services for which the Advisor receives the Acquisition and Advisory Fee or the
Real Estate Commission.

     

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

     

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

     

    3.04     Reimbursement
to the Advisor.  The Company shall
not reimburse the Advisor, at the end of any fiscal quarter, for any Operating
Expenses to the extent that, in the four consecutive fiscal quarters then ended
(the “Expense Year”) the Operating Expenses exceed (the “Excess Amount”) the
greater of (i) 2% of Average Invested Assets or (ii) 25% of Net Income (the
“2%/25% Guidelines”) for that period of four consecutive quarters unless the
Independent Directors determine that such excess was justified, based on unusual
and nonrecurring factors which the Independent Directors deem
sufficient.  If the Independent Directors do not approve such excess
as being so justified, any Excess Amount paid to the Advisor during a fiscal
quarter shall be repaid to the Company.

     

    
      
        
        

      

      
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    ARTICLE
IV

     

    TERM AND
TERMINATION

     

    4.01     Term;
Renewal.  Subject to
Section 4.02 hereof, this Agreement has a one-year term and shall continue in
force until the first anniversary of the date hereof.  Thereafter,
this Agreement may be renewed for an unlimited number of successive one-year
terms upon mutual consent of the parties.  It is the Board’s Duty to
evaluate the performance of the Advisor annually before renewing the Agreement,
and each such renewal shall be for a term of no more than one year.

     

    4.02     Termination.  This Agreement
will automatically terminate upon Listing.  This Agreement also may be
terminated at the option of either party (i) immediately upon a Change of
Control or (ii) upon 60 days written notice without cause or penalty (in either
case, if termination is by the Company, then such termination shall be upon the
approval of a majority of the Independent Directors).  Notwithstanding
the foregoing, the provisions of this Agreement which provide for payment to the
Advisor of expenses, fees or other compensation following the date of
termination (i.e.,
Sections 3.01(e) and 4.03) shall continue in full force and effect until all
amounts payable thereunder to the Advisor are paid in full.  The
provisions of Sections 2.05, 2.06 and 4.03 through 6.11 shall survive the
termination of this Agreement.

     

    4.03     Payments to and Duties of
Advisor upon Termination.

     

    (a)     After the
Termination Date, the Advisor shall not be entitled to compensation for further
services hereunder except it shall be entitled to and receive from the Company
within 30 days after the effective date of such termination all unpaid
reimbursements of expenses, subject to the provisions of Section 3.04 hereof,
and all contingent liabilities related to fees payable to the Advisor prior to
termination of this Agreement, provided that the Subordinated Incentive Listing
Fee, if any, shall be paid in accordance with the provisions of Section
3.01(e).

     

    (b)     Upon
termination, unless such termination is by the Company because of a material
breach of this Agreement by the Advisor or occurs upon a Change of Control, the
Advisor shall be entitled to receive a payment of the Performance Fee equal to
15.0% of the amount, if any, by which (i) the Appraised Value of the Assets on
the Termination Date, less the amount of all indebtedness secured by the Assets,
plus the total Distributions paid to Stockholders from the Company’s inception
through the Termination Date less any amounts distributable as of the
termination date to limited partners of the Partnership who receive operating
partnership units, exceeds (ii) Invested Capital plus an amount equal to the
Stockholders’ 8.0% Return from inception through the Termination
Date.  The Company shall pay such Performance Fee, with interest, at
such time as the Company completes the first Sale after the Termination Date
provided, however, the Advisor may elect to defer its right to receive the
Performance Fee until either a Listing or other liquidity event for the
Company.  Payment shall be made from the Net Sales Proceeds of such
Sale.  Interest will accrue beginning on the Termination Date at a
rate deemed fair and reasonable by the Board on the Termination
Date.  The Company shall have the option to pay such fee in the form
of cash, Shares, a promissory note, or any combination of the
foregoing.  If the Net Sales Proceeds from the first Sale after the
Termination Date are insufficient to pay the Performance Fee in full, plus
accrued interest, then the Performance Fee shall be paid in part with such Net
Sales Proceeds, and in part from the Net Sales Proceeds from the next successive
Sales until the Performance Fee is paid in full, with interest.  If
the Performance Fee has not been paid in full within five years from the
Termination Date, then the Advisor, its successors or assigns, may elect to
convert the balance of the fee, including accrued but unpaid interest, into
Shares at a price per Share equal to the average closing price of the Shares
over the ten trading days immediately preceding the date of such election if the
Shares are Listed at such time.  If the Shares are not Listed at such
time, the Advisor, its successors or assigns, may elect to convert the balance
of the fee, including accrued but unpaid interest, into Shares at a price per
Share equal to the fair market value for the Shares as determined by the Board
based upon the Appraised Value of the Assets on the date of
election.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (c)     Notwithstanding
the foregoing, if termination occurs upon a Change of Control, the Advisor shall
be entitled to payment of the Performance Fee equal to 15.0% of the amount, if
any, by which (i) the value of the Assets on the Termination Date as determined
in good faith by the Board, including a majority of the Independent Directors,
based upon such factors as the consideration paid in connection with the Change
of Control and the most recent Appraised Value, less the amount of all
indebtedness secured by the Assets, plus the total Distributions paid to
Stockholders from the Company’s inception through the Termination Date, exceeds
(ii) Invested Capital plus an amount equal to the Stockholders’ 8.0% Return from
inception through the Termination Date.  No deferral of payment of the
Performance Fee may be made under this Section 4.03(c).

     

    (d)     In the
event that the Advisor disagrees with the valuation of Shares pursuant to
Section 4.03(b) where the Shares are not Listed for purposes of determining the
number of Shares to be issued to the Advisor following the Advisor’s election to
convert the balance of the Performance Fee owed to the Advisor, then the fair
market value of such Shares shall be determined by an Independent Appraiser of
equity value selected by the Advisor.

     

    (e)     Notwithstanding
sections 4.03 (b) and (c), in the event the Subordinated Incentive Listing Fee
is paid to the Advisor following Listing, no Performance Fee will be paid to the
Advisor.

     

    (f)     The
Advisor shall promptly upon termination:

     

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

     

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

     

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

     

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

     

    ARTICLE
V

     

    INDEMNIFICATION

     

    5.01 (a)           The
Company shall indemnify and hold harmless the Advisor and its Affiliates,
including their respective officers, directors, partners and employees, from all
liability, claims, damages or losses arising in the performance of their duties
hereunder, and related expenses, including reasonable attorneys’ fees, to the
extent such liability, claims, damages or losses and related expenses are not
fully reimbursed by insurance, subject to any limitations imposed by the laws of
the State of Maryland, the Articles of Incorporation and the NASAA Guidelines
under the Articles of Incorporation. The Company shall not indemnify or hold
harmless the Advisor or its Affiliates, including their respective officers,
directors, partners and employees, for any liability or loss suffered by the
Advisor or its Affiliates, including their respective officers, directors,
partners and employees, nor shall it provide that the Advisor or its Affiliates,
including their respective officers, directors, partners and employees, be held
harmless for any loss or liability suffered by the Company, unless all of the
following conditions are met: (i) the Advisor or its Affiliates, including their
respective officers, directors, partners and employees, have determined, in good
faith, that the course of conduct which caused the loss or liability was in the
best interests of the Company; (ii) the Advisor or its Affiliates, including
their respective officers, directors, partners and employees, were acting on
behalf of or performing services of the Company; (iii) such liability or loss
was not the result of negligence or misconduct by the Advisor or its Affiliates,
including their respective officers, directors, partners and employees; and (iv)
such indemnification or agreement to hold harmless is recoverable only out of
the Company’s net assets and not from Stockholders.  Notwithstanding
the foregoing, the Advisor and its Affiliates, including their respective
officers, directors, partners and employees, shall not be indemnified by the
Company for any losses, liability or expenses arising from or out of an alleged
violation of federal or state securities laws by such party unless one or more
of the following conditions are met: (i) there has been a successful
adjudication on the merits of each count involving alleged securities law
violations as to the particular indemnitee; (ii) such claims have been dismissed
with prejudice on the merits by a court of competent jurisdiction as to the
particular indemnitee; and (iii) a court of competent jurisdiction approves a
settlement of the claims against a particular indemnitee and finds that
indemnification of the settlement and the related costs should be made, and the
court considering the request for indemnification has been advised of the
position of the Securities and Exchange Commission and of the published position
of any state securities regulatory authority in which securities of the Company
were offered or sold as to indemnification for violations of securities
laws.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

    
      
        
        

      

      
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    ARTICLE
VI

     

    MISCELLANEOUS

     

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

     

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

     

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

     

    

    
      	
              To
      the Directors and to the Company:

            	
              Carter
      Validus Mission Critical REIT, Inc.

              4211
      West Boy Scout Blvd., Suite 500

              Tampa,
      Florida 33607

              Attention:
      Chief Executive Officer and President

               

            
	
              To
      the Advisor:

            	
              Carter/Validus
      Advisors, LLC

              4211
      West Boy Scout Blvd., Suite 500

              Tampa,
      Florida 33607

              Attention:
      Chief Executive Officer and
President

            

    

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

    6.12     Initial
Investment.  The Advisor or
one of its Affiliates has contributed $200,000 (the “Initial Investment”) in
exchange for the initial issuance of Shares of the Company.  The
Advisor or its Affiliates may not sell any of the Shares purchased with the
Initial Investment while the Advisor acts in an advisory capacity to the
Company.  The restrictions included above shall not apply to any
Shares acquired by the Advisor or its Affiliates other than the Shares acquired
through the Initial Investment.  Neither the Advisor nor its
Affiliates shall vote any Shares they now own, or hereafter acquires, in any
vote for the election of Directors or any vote regarding the approval or
termination of any contract with the Advisor or any of its
Affiliates.

     

    

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

     

     

    
      
        	 	CARTER VALIDUS MISSION CRITICAL
      REIT, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	John
      E. Carter	 
	 	 	Chief
      Executive Officer	 
	 	 	 	 

      

    

    

      
        	 	CARTER/VALIDUS ADVISORS,
      LLC	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	John
      E. Carter	 
	 	 	

                Chief
      Executive Officer and Chief Investment Officer

              	 
	 	 	 	 

      

    

     

     

    
      
        
        

      

      
        20

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