Document:

exv10w82

Exhibit 10.82

 

BORROWING BASE REVOLVING LINE OF CREDIT AGREEMENT

DATED AS OF JANUARY 6, 2010

BY AND AMONG

COLE REIT III OPERATING PARTNERSHIP, LP

AND

EACH OF THE PROJECT BORROWERS REFERENCED HEREIN,

JOINTLY AND SEVERALLY AS BORROWER,

AND

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT,

US BANK NATIONAL ASSOCIATION, AS SOLE SYNDICATION AGENT,

RBS CITIZENS, N.A., D/B/A CHARTER ONE, AS CO-DOCUMENTATION AGENT,

COMERICA BANK, AS CO-DOCUMENTATION AGENT

AND

THE LENDERS REFERENCED HEREIN,

AND

J.P. MORGAN SECURITIES INC.,

AS SOLE BOOKRUNNER AND SOLE LEAD ARRANGER

 

 

 

BORROWING BASE REVOLVING LINE

OF CREDIT AGREEMENT

     This BORROWING BASE REVOLVING LINE OF CREDIT AGREEMENT (this “Agreement”) dated as of January
6, 2010 is made and entered into by and among COLE REIT III OPERATING PARTNERSHIP, LP, a Delaware
limited partnership, each of the Project Borrowers (as hereinafter defined) party hereto from time
to time, JPMORGAN CHASE BANK, N.A., a national banking association, in its capacity as
Administrative Agent (as hereinafter defined), and the Lenders (as hereinafter defined) party
hereto from time to time.

RECITALS

     (A) Borrower (as hereinafter defined) has requested that Lenders provide to Borrower
a borrowing base revolving line of credit to finance Operating Borrower’s or any Project Borrower’s
acquisition and operation of Qualified Properties (as hereinafter defined).

     (B) Lenders are willing to provide such a borrowing base revolving line of credit to
Borrower upon the terms and conditions hereinafter set forth.

AGREEMENT

     For good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Borrower and Administrative Agent and the Lenders agree that:

ARTICLE 1

DEFINITIONS

     1.1 Definitions. In this Agreement, the following capitalized terms have
the following meanings:

     “Accordion Increase” means as defined in Section 2.1(c).

     “Acquisition Costs” means the actual purchase price paid by the applicable
Project Borrower to acquire a Qualified Property (excluding any costs and expenses incurred
in connection therewith that were added to the purchase price for such Qualified Property).

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any
Interest Period, or for any Floating Rate Borrowing, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

     “Adjusted One Month LIBO Rate” means, an interest rate per annum equal to the
sum of (i) 2.50% per annum plus (ii) the Adjusted LIBO Rate for a one month Interest Period
on such day (or if such day is not a Business Day, the immediately preceding Business Day);
provided that, for the avoidance of doubt, the Adjusted LIBO Rate for

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any day shall be based
on the rate appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute
page thereof) at approximately 11:00 a.m. London time on such day (without any rounding).

     “Administrative Agent” means JPMORGAN CHASE BANK, N.A., in its capacity as
administrative agent for the Lenders hereunder, or any successor administrative agent.

     “Administrative Questionnaire” means an administrative questionnaire in a form
supplied by Administrative Agent.

     “Advance” means each disbursement of proceeds of the Commitment, including,
without limitation, Protective Advances.

     “Advisors” means Cole REIT Advisors III, LLC and its Affiliates.

     “Affiliate” of any Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with, such Person.
For the purposes of this Agreement, “control,” when used with respect to any Person, means
the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

     “Aggregate Commitment” means, as of any date of determination, the aggregate of
the Commitments of all the Lenders, as such amount may be reduced or increased (by the
Accordion Increase) in accordance with this Agreement. As of the Effective Date hereof, the
Aggregate Commitment is One Hundred Million and No/100 Dollars ($100,000,000.00).

     “Agreement” means this Borrowing Base Revolving Line of Credit Agreement, as
amended, restated, supplemented or otherwise modified from time to time.

     “Applicable Margin” means 3.50% with respect to the Fixed Rate and 1.0% with
respect to the Floating Rate.

     “Appraisal” means an appraisal of each Qualified Property which meets the
following requirements: (a) such appraisal has been prepared by an independent appraiser
reasonably approved and directly engaged by Administrative Agent; (b) such appraisal
satisfies all of the requirements set forth in Section 3.6; (c) such appraisal
complies with all applicable federal and state laws and regulations dealing with appraisals
or valuations of real property; and (d) such appraisal has been reviewed as to form and
content and approved by Administrative Agent in its sole and absolute discretion.

     “Appraised Value” means, with respect to each Qualified Property, the appraised
value of such Qualified Property set forth in the most recent Appraisal for such Qualified
Property.

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     “Approvals and Permits” means each and all approvals, authorizations, bonds,
consents, certificates, franchises, licenses, permits, registrations, qualifications,
entitlements and other actions and rights granted by or filings with any Person necessary or
appropriate for acquisition and development of the Qualified Properties, for the sale of
Qualified Properties, for occupancy, ownership and use by Persons of the Qualified
Properties, or otherwise for the conduct of, or in connection with, the business and
operations of Borrower or any other Loan Party.

     “Approved Fund” means (a) a commercial bank organized under the laws of the
United States of America, or any state thereof, and having total assets in excess of
$5,000,000,000; (b) a savings and loan association or savings bank organized under the laws
of the United States of America, or any state thereof, and having a tangible net worth of at
least $250,000,000; (c) a commercial bank organized under the laws of any other country
which is a member of the Organization for Economic Cooperation and Development (“OECD”), or
a political subdivision of any such country, and having total assets in excess of
$10,000,000,000, provided that such bank is acting through a branch or agency located in the
United States of America; or (d) the central bank of any country which is a member of the
OECD.

     “Assignment and Assumption” means an assignment and assumption entered into by
a Lender and an assignee (with the consent of any party whose consent is required by
Section 9.1), and accepted by Administrative Agent, in the form of Exhibit A
attached hereto or any other form approved by Administrative Agent.

     “Assignment of Ownership Interest” means with respect to any limited liability
company, an assignment of membership pledge agreement in the form attached hereto as
Exhibit B, and with respect to any limited partnership or other entity, a comparable
form for such entity’s organizational structure, executed by Operating Borrower (and if
applicable, the applicable Subsidiary of Operating Borrower) or Guarantor, as applicable,
based upon the ownership structure of such Person, from time to time for the benefit of
Administrative Agent on behalf of the Lenders, whereby Operating Borrower (and if
applicable, the applicable Subsidiary of Operating Borrower) or Guarantor, as applicable,
assigns to Administrative Agent for the benefit of the Lenders one hundred percent (100%) of
the Ownership Interests in and to each of the Project Borrowers.

     “Authorization Documents” means certified copies of all resolutions of the
shareholders, members or partners, as applicable, of Borrower and Guarantor and each other
Loan Party, authorizing Borrower, Guarantor and each other Loan Party to execute, deliver
and perform its obligations under this Agreement and the other Loan Documents to be executed
and delivered by the applicable Borrower, Guarantor or any other Loan Party in connection
herewith, and certifying the names and signatures thereon of the officers of the applicable
Borrower, Guarantor and each other Loan Party authorized to execute this Agreement and the
other Loan Documents and to request Advances on behalf of Borrower.

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     “Available Commitment” means at any time, the lesser of:

     (a) The Aggregate Commitment; or

     (b) The Borrowing Base, as determined by Administrative Agent
from time to time in accordance with Article 3.

     “Bankruptcy Code” means Title 11 of the United States Code entitled
“Bankruptcy,” as now and hereafter in effect, or any successor federal statute.

     “Borrower” means, individually and collectively, each of the Project Borrowers
and Operating Borrower, jointly and severally.

     “Borrower Assumption Agreement” means, as to each Project Borrower that is not
an Initial Project Borrower, that certain Project Borrower Assumption Agreement in
substantially the form attached hereto as Exhibit C.

     “Borrowing” means Advances of the same Type, made, converted or continued on
the same date and, in the case of Eurodollar Borrowings, as to which a single Interest
Period is in effect.

     “Borrowing Base” means as defined in Section 3.1, as determined by
Administrative Agent from time to time in its sole but reasonable business judgment
discretion.

     “Borrowing Base Report and Collateral Certificate” means a report prepared by
Operating Borrower, signed and certified as accurate and complete by an authorized officer
of Operating Borrower’s general partner, in substantially the form of Exhibit D or
another form which is reasonably acceptable to each of Administrative Agent and Operating
Borrower.

     “Borrowing Base Value” means as defined in Section 3.1, as determined
by Administrative Agent from time to time in its sole but reasonable business judgment
discretion.

     “Business Day” means any day that is not a Saturday, Sunday or other day on
which commercial banks in New York City or Phoenix, Arizona, are authorized or required by
law to remain closed; provided that, when used in connection with a Eurodollar Borrowing,
the term “Business Day” shall also exclude any day on which banks are not open for
dealings in dollar deposits in the London interbank market.

     “Capitalization Rate” means 8.25%.

     “CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate
shall never be less than the Adjusted One Month LIBO Rate for a one (1) month Interest
Period on such day (or if such day is not a Business Day, the immediately preceding Business
Day). Any change in the CB Floating Rate due to a change in the Prime Rate or the Adjusted
One Month LIBO Rate shall be effective from and including the effective

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date of such change
in the Prime Rate or the Adjusted One Month LIBO Rate, respectively.

     “Change in Law” means (a) the adoption of any law, rule or regulation after the
Effective Date of this Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the Effective Date
of this Agreement, or (c) compliance by any Lender (or by any applicable lending office of
any such Lender) with any request, guideline or directive (whether or not having the force
of law) of any Governmental Authority made or issued after the Effective Date of this
Agreement.

     “Change of Control” means an event or series of events by which (a) Guarantor
fails to own, directly or indirectly, more than 50% of the Ownership Interests of Operating
Borrower entitled to vote for members of the board of directors or equivalent governing body
of Operating Borrower on a fully-diluted basis (and taking into account all such securities
that such person or group has the right to acquire pursuant to any option right) or (b)
during any period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of Guarantor cease to be composed of
individuals (i) who were members of that board or equivalent governing body on the first day
of such period or (ii) whose election or nomination to that board or other equivalent
governing body was approved by individuals referred to in clause (i) above constituting at
the time of such election or nomination at least a majority of that board or equivalent
governing body.

     “CMBS Securities” means a collective reference to any investment securities
that represent an interest in, or are secured by, one or more pools of commercial mortgage
loans or synthetic mortgages.

     “Code” means the United States Internal Revenue Code of 1986, as amended from
time to time.

     “Collateral” means the property, interests in property, and rights to property
securing any or all Obligations from time to time.

     “Commitment” means the obligation of Lenders to make Advances to Borrower
pursuant to this Agreement and otherwise provide credit pursuant to this Agreement.

     “Commitment Amount” means, with respect to each Lender, the amount of the
Aggregate Commitment represented by each Lender’s respective Commitment under this
Agreement.

     “Commitment Amount Percentage” means, with respect to any Lender, the
percentage of the Aggregate Commitment represented by such Lender’s Commitment Amount. If
the Commitments have terminated or expired, the Commitment Amount Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to any
assignments.

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     “Compliance Certificate” means a Certificate in the form of Exhibit E
attached hereto or another form which is reasonably acceptable to each of Administrative
Agent and Operating Borrower.

     “Consolidated Debt Service” means, with respect to the Consolidated Group for
any period, without duplication, (a) Consolidated Interest Expense for such period, plus (b)
the aggregate amount of scheduled principal payments attributable to Consolidated
Outstanding Indebtedness (excluding optional prepayments and scheduled principal payments in
respect of any such Indebtedness which is not amortized through equal periodic installments
of principal and interest over the term of such Indebtedness) required to be made during
such period by any member of the Consolidated Group, plus (c) a percentage of all such
scheduled principal payments required to be made during such period by any Investment
Affiliate on Indebtedness taken into account in calculating Consolidated Interest Expense
(excluding optional prepayments and scheduled principal payments in respect of any such
Indebtedness which is not amortized through equal periodic installments of principal and
interest over the term of such Indebtedness), equal to the greater of (x) the percentage of
the principal amount of such Indebtedness for which any member of the Consolidated Group is
liable (to the extent not already included pursuant to clause (b) above) and (y) the
Consolidated Group Pro Rata Share of such Investment Affiliate.

     “Consolidated Group” means Guarantor and all of its Subsidiaries, which are
consolidated with Guarantor for financial reporting purposes under GAAP.

     “Consolidated Group Pro Rata Share” means, with respect to any Investment
Affiliate, the percentage of the total equity ownership interests held by the Consolidated
Group in the aggregate, in such Investment Affiliate; provided, that to the extent a given
calculation includes liabilities, obligations or Indebtedness of any Investment Affiliate
and the Consolidated Group, in the aggregate, is or would be liable for a portion of such
liabilities, obligations or Indebtedness in a percentage that differs from that calculated
above, the “Consolidated Group Pro Rata Share” with respect to such liabilities, obligations
or Indebtedness shall be equal to the percentage of such liabilities, obligations or
Indebtedness for which the Consolidated Group is or would be liable.

     “Consolidated Interest Expense” means, for any period, without duplication, the
sum of (a) the amount of interest expense, determined in accordance with GAAP, of the
Consolidated Group for such period attributable to Consolidated Outstanding Indebtedness
during such period, plus (b) the Consolidated Group Pro Rata Share of any interest expense,
determined in accordance with GAAP, of any Investment Affiliate, for such period, whether
recourse or non recourse.

     “Consolidated Outstanding Indebtedness” means, as of any date of determination,
without duplication, the sum of (a) all Indebtedness of the Consolidated Group outstanding
at such date, determined on a consolidated basis in accordance with GAAP (whether recourse
or non recourse), plus, without duplication, (b) the applicable Consolidated Group Pro Rata
Share of any Indebtedness of each Investment Affiliate,

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other than, in either case,
Indebtedness of any member of the Consolidated Group owed to another member of the
Consolidated Group.

     “Consolidated Net Operating Income” means, with respect to a Project owned for
and not Construction in Progress during the prior twelve (12) months, (a) “property rental
and other income” (as determined by GAAP) attributable to such Project accruing for such
period, plus (b) all master lease income, less (c) the amount of all expenses (as determined
in accordance with GAAP) incurred in connection with and directly attributable to the
ownership and operation of such Project for such period, excluding any general and
administrative expenses related to the operation of Operating Borrower or the applicable
owner of the Project, any interest expense or other debt service charges, any real estate
acquisition costs and expenses, any amortization related to above-market or below-market
leases and any non-cash charges such as impairment of real estate assets and depreciation or
amortization of financing costs, all as for the four (4) consecutive fiscal quarters most
recently ended.

     “Construction in Progress” means, as of any date, the GAAP-determined value of
any Projects then under development, provided that a Project shall no longer be included in
Construction in Progress and shall be deemed to be a stabilized project upon the earlier of
(a) the expiration of the second full fiscal quarter after substantial completion (the
earlier of receipt of a temporary certificate of occupancy or a final certificate of
occupancy) of such Project and (b) the date such Project is one hundred percent (100%)
occupied and the tenant(s) thereof are paying rent in accordance with the provisions set
forth in the applicable lease agreement.

     “Dark Property” means an otherwise Qualified Property where one or more of the
Tenants previously occupying said Qualified Property has vacated said Qualified Property,
but said Qualified
Property remains 100% leased (ignoring subleases) to a Plus-Credit Tenant pursuant to a
net Lease, said Tenant is current on payments and has a minimum of eight (8) years left on
its Lease (exclusive of any extension options), such Lease is free of any co-tenancy clauses
and such Tenant does not have any right to terminate its Lease.

     “Debt Coverage Amount” means the greater of (a) a 14% Debt Yield, and (b) a
Debt Service Coverage Ratio of 1.60:1.0.

     “Debt Service Coverage Ratio” means, as of any date of determination and with
respect to all of the Qualified Properties, the aggregate NOI for such Qualified Properties
divided by Total Debt Service as of the date of such determination.

     “Debt Yield” means, as of any date of determination and with respect to all of
the Qualified Properties, (a) the aggregate NOI for such Qualified Properties, divided by
(b) the then total Available Commitment as of such date.

     “Default Interest Rate” means as defined in Section 2.5(c).

     “Defaulting Lender” means any Lender, as determined by Administrative Agent,
that has (a) failed to fund any portion of its Commitment within three (3) Business Days

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of
the date required to be funded by it hereunder, (b) notified Borrower, Administrative Agent
or any Lender in writing that it does not intend to comply with any of its funding
obligations under this Agreement or has made a public statement to the effect that it does
not intend to comply with its funding obligations under this Agreement or under other
agreements in which it commits to extend credit, (c) failed, within three (3) Business Days
after request by Administrative Agent, to confirm that it will comply with the terms of this
Agreement relating to its obligations to fund prospective Advances, (d) otherwise failed to
pay over to Administrative Agent or any Lender any other amount required to be paid by it
hereunder within three (3) Business Days of the date when due, unless the subject of a good
faith dispute, or (e) (i) become or is insolvent, or has a parent company that has become or
is insolvent, or (ii) become the subject of a bankruptcy or insolvency proceeding, or has
had a receiver, conservator, trustee or custodian appointed for it, or has taken any action
in furtherance of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment or has a parent company that has become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or
custodian appointed for it, or has taken any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment.

     “Disqualified Property” means as defined in Section 4.2.

     “Distributions” means any dividend or other distribution paid by Guarantor to
shareholders in respect of any Ownership Interest in Guarantor, excluding (a) dividends or
distributions payable solely in shares of the applicable class of Ownership Interests to the
holders of such class and (b) any commercially reasonable advisory and management fees paid
to or any commercially reasonable costs or commercially reasonable expenses incurred in
connection with advisory and management services by the Advisors.

     “Dividend Payout Ratio” means Distributions paid for any period less Dividend
Reinvestment Proceeds received by Guarantor, divided by the Modified Funds From Operations
of Consolidated Group.

     “Dividend Reinvestment Proceeds” means Distributions on account of any shares
of any Ownership Interests of Guarantor which any holder(s) of such Ownership Interests
direct to be used, concurrently with the making of such Distributions, for the purpose of
purchasing for the account of such holder(s) additional Ownership Interests in Guarantor or
its Subsidiaries.

     “Draw Request” means a completed request, substantially in form of Exhibit
J attached hereto or such other form reasonably satisfactory to Administrative Agent,
from Borrower to Administrative Agent
requesting an Advance, together with such other documents and information as
Administrative Agent may require from time to time, in its sole but reasonable business
judgment discretion.

     “EBITDA” means, with respect to the Consolidated Group for any period,
consolidated net income of the Consolidated Group as determined in accordance with GAAP
plus, to the extent previously deducted, interest, taxes, depreciation, amortization,

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straight lining of rents, gains or losses from sales of assets, extraordinary items, other
non-cash items, fees and expenses associated with the transaction contemplated by this
Agreement, managements fees and expenses and real estate acquisition costs and expenses and
the Consolidated Group Pro Rata Share of interest, taxes, depreciation, amortization,
straight lining of rents, gains or losses from sales of assets, extraordinary items, other
non-cash items, management fees and expenses and real estate acquisition costs and expenses
for the Investment Affiliates. To the extent previously deducted, all of the above
described modifiers to such consolidated net income are as derived from Guarantor’s books
and records, which books and records are to be maintained in accordance with GAAP.

     “Effective Date” means the date set forth on the first page of this Agreement.

     “Eligible Collateral” means the Qualified Properties that meet the requirements
of Eligible Collateral set forth in this Agreement, subject to the exclusions set forth in
this Agreement and excluding any Disqualified Property.

     “Eligible Notes Receivable” means a promissory note which is properly assigned
and/or endorsed payable to a member of the Consolidated Group, and which note is (a) secured
by a first lien mortgage (or similar security instrument) which mortgage is properly
perfected and properly assigned to such member of the Consolidated Group pursuant to an
assignment of record (or multiple assignments from the original lender through to such
member of the Consolidated Group), (b) current in terms of principal and interest payments
from the obligor thereunder, (c) from an obligor not the subject of bankruptcy or other
insolvency proceedings, (d) not subject to any liens or claims of other parties (other than
statutory liens relating to non-delinquent taxes), and (e) not subject to any assertions by
the obligor that such note is unenforceable or that the obligor has defenses to the
enforcement thereof.

     “Environmental Agreement” means, with respect to each Qualified Property, an
Environmental Indemnity Agreement now or hereafter executed by Borrower and Guarantor for
the benefit of Administrative Agent, substantially in the form attached hereto as
Exhibit F, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

     “ERISA” means the Employee Retirement Income Security Act of 1974 and the
regulations and published interpretations thereunder, as in effect from time to time.

     “ERISA Affiliate” means as defined in Section 5.1(k)(ii).

     “Eurodollar Borrowing” refers to each Advance that bears interest at the Fixed
Rate.

     “Event of Default” means as defined in Section 8.1.

     “Excluded Taxes” means, with respect to Administrative Agent, any Lender, any
Issuing Lender or any other recipient of any payment to be made by or on account of any
Obligation, (a) taxes imposed on or measured by its overall net income (however

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denominated), and franchise taxes imposed on it (in lieu of net income taxes), by any
applicable jurisdiction (or any political subdivision thereof); (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any jurisdiction in which any
Loan Party or Qualified Property is located; (c) any backup withholding tax that is required
by the Code to be withheld from amounts payable to a Lender that has failed or is unable to
comply with Section 2.11(e); and (d) in the case of a Foreign Lender, any United States
withholding tax that (i) is required to be imposed on amounts payable to such Foreign Lender
pursuant to the Laws in force at the time such Foreign Lender
becomes a party hereto (or designates a new Lending Office) or (ii) is attributable to
such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to
comply with Section 2.11(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new Lending Office (or
assignment), to receive additional amounts from Borrower with respect to such withholding
tax pursuant to Section 2.11.

     “Federal Funds Effective Rate” means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/16 of 1%) of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/16 of 1%) of the quotations for such day for
such transactions received by Administrative Agent from three Federal funds brokers of
recognized standing selected by it.

     “Federal Reserve Bank” means any one of the twelve (12) Federal Reserve Banks
located in the United States of America.

     “Fiscal Year” means, as applicable, the fiscal year of Operating Borrower
ending on each December 31, or the fiscal year of Guarantor ending on each December 31.

     “Fitch” means Fitch Ratings, Ltd. and any successor thereto.

     “Fixed Rate” means, with respect to a Eurodollar Borrowing for the relevant
Interest Period, the greater of (i) 4.5% per annum, or (ii) the sum of (a) the applicable
Adjusted LIBO Rate plus (b) the Applicable Margin for the Fixed Rate.

     “Floating Rate” means, for any day, the greater of (i) 4.5% per annum, or (ii)
the sum of (a) a rate per annum equal to the CB Floating Rate for such day plus (b) the
Applicable Margin for the Floating Rate.

     “Floating Rate Borrowing” refers to each Advance that bears interest at the
Floating Rate.

     “Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than in which Borrower is located. For purposes of this definition, the
United States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

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     “Formation Documents” means the articles of incorporation, articles of
organization, partnership certificate, bylaws, operating agreement and partnership agreement
of Borrower and Guarantor and each other Loan Party, together with such resolutions, consent
and other documents as Administrative Agent may reasonably require to evidence due
formation, valid existence and authority of Borrower, Guarantor and each other Loan Party.

     “GAAP” means generally accepted accounting principles consistently applied.

     “Governmental Authority” means the government of the United States of America,
any other nation or any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government.

     “Guarantor” means COLE CREDIT PROPERTY TRUST III, INC., a Maryland corporation.

     “Highest Lawful Rate” means the maximum non-usurious interest rate, as in
effect from time to time, which may be charged, contracted for, reserved, received or
collected by Lenders in connection with this Agreement and the other Loan Documents, it
being the express intent of the parties hereto that such
maximum non-usurious interest rate shall be determined, to the maximum extent permitted
by law, by the internal laws of the State of Arizona applicable to interest rates agreed to
and contracted for in writing.

     “Impositions” means any and all of the following:

     (a) Real property taxes and assessments (general and special)
assessed against or imposed upon or in respect of any of the Collateral or
the Obligations;

     (b) Personal property taxes assessed against or imposed upon
or in respect of any of the Collateral or the Obligations;

     (c) Other taxes and assessments of any kind or nature that
are assessed or imposed upon or in respect of the Collateral or the
Obligations or that may result in a Lien or Encumbrance upon any of the
Collateral (including, without limitation, non-governmental assessments,
levies, maintenance and other charges whether resulting from covenants,
conditions, and restrictions or otherwise, water and sewer rents and
charges, assessments on any water stock, utility charges and assessments,
and owner association dues, fees, and levies);

     (d) Taxes or assessments on any of the Collateral in lieu of
or in addition to any of the foregoing;

     (e) Taxes on income, revenues, rents, issues, profits and
franchise taxes in respect of the Collateral;

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     (f) Costs, expenses and fees arising from or related to any
of the Approvals and Permits or the Requirements; and

     (g) Assessment, documentary, indebtedness, license, stamp and
revenue charges, fees and taxes and any other fees or taxes imposed on
Lenders and measured by or based in whole or in part upon ownership of the
Mortgage Instruments, interest in Collateral, or any promissory note,
guaranty or Indebtedness secured by the Mortgage Instruments or upon the
nature or amount of the Obligations, excluding, however, from all of the
foregoing, any Excluded Taxes.

     “Improvements” means any and all improvements now or hereafter constructed on
the Qualified Properties.

     “Indebtedness” means, as to any Person, all obligations (including contingent
obligations, trade payables and accrued expenses) that would be included as liabilities on a
balance sheet prepared in accordance with GAAP and determined on a consolidated basis for
such Person.

     “Initial Project Borrower” means, severally and collectively, those Persons
listed on Schedule 2 attached hereto.

     “Interest Election Request” means a request by Borrower to convert or continue
a Borrowing in accordance with Section 2.2.

     “Interest Payment Date” means the 5th day of each month.

     “Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Eurodollar Borrowing and ending on the numerically
corresponding day in the calendar month
that is one, two or three months thereafter, as Borrower may elect, provided, that (a)
if any Interest Period would end on a day other than a Business Day, such Interest Period
shall be extended to the next succeeding Business Day unless such next succeeding Business
Day would fall in the next calendar month, in which case such Interest Period shall end on
the next preceding Business Day and (b) any Interest Period that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period. For purposes hereof, the
date of a Eurodollar Borrowing initially shall be the date on which such Eurodollar
Borrowing is made and, thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.

     “Interest Rate” means either the Fixed Rate or Floating Rate, as applicable.

     “Investment” means, with respect to any Person, any outstanding loan or advance
(other than deposits made in connection with any acquisition of Qualified Properties or
other assets and advances made in the ordinary course of business that would be recorded as
accounts receivable on the balance sheet of such Person prepared in accordance with

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GAAP)
made by such Person to any other Person; any contingent liabilities of such Person
undertaken with respect to outstanding Indebtedness of any other Person; and any ownership
or similar interest held by such Person in any other Person.

     “Investment Affiliate” means any Person in which the Consolidated Group,
directly or indirectly, has a ten percent (10%) or greater ownership interest, whose
financial results are not consolidated under GAAP with the financial results of the
Consolidated Group.

     “Involuntary Lien” means any Lien or Encumbrance securing the payment of money
or the performance of any other obligation created involuntarily under any law, ordinance,
regulation, or rule, or otherwise and any claim of any such Lien or Encumbrance. For
purposes of the Loan Documents and the rights and remedies thereunder, “stop notices” or
similar notices and demands from Persons performing work or supplying materials with respect
to any Collateral and who are asserting lien rights, shall be considered as Involuntary
Liens.

     “Issuing Lender” means JPMORGAN CHASE BANK, N.A. or any successor thereof
approved by Administrative Agent in its sole and absolute discretion.

     “Law” means any law (including common law), constitution, statute, treaty,
regulation, rule, ordinance, guideline, order, injunction, writ, decree, or award of any
Governmental Authority with jurisdiction over Borrower, Guarantor or any Qualified Property.

     “Leases” means, collectively, any lease or other agreement for the use and
occupancy of all or any portion of the Improvements, whether now in existence or hereafter
arising, including any amendments or supplements thereto, provided any such amendments and
supplements executed after the Effective Date that materially increase the obligations of
the applicable Project Borrower or materially decrease the obligations of the applicable
Tenant shall be subject to Administrative Agent’s approval.

     “Lease Documents” means the Leases and all other documents, agreements and
instruments executed and delivered in connection therewith, including any amendments or
supplements thereto, provided any such amendments and supplements executed after the
Effective Date that materially increase the obligations of the applicable Project Borrower
or materially decrease the obligations of the applicable Tenant shall be subject to
Administrative Agent’s approval.

     “Lenders” means, collectively, the Persons listed on Schedule 1
attached hereto, and any other Person that shall have become a party hereto pursuant to an
Assignment and Assumption (including, without limitation, in connection with an Accordion
Increase), but excluding any such Person that ceases to be a party hereto pursuant to an
Assignment and Assumption.

     “Lending Office” means, with respect to each Lender, each Lender’s office
located at its address set forth on the signature pages hereof as its Lending Office or such

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other office as such Lender may hereafter designate as its Lending Office by written notice
to Administrative Agent and Operating Borrower.

     “Letter of Credit Agreement” means, collectively, (a) Issuing Lender’s standard
form agreement for commercial letters of credit in use by Issuing Lender and (b) Issuing
Lender’s standard form agreement for standby letters of credit in use by Issuing Lender, in
each case acceptable to Borrower, which with respect to the initial Issuing Lender, is
substantially in the form separately agreed to by such Issuing Lender and Borrower as of the
Effective Date.

     “Letter of Credit Commitment Amount” means an amount equal to no more than five
percent (5%) of the Aggregate Commitment.

     “Letter of Credit Obligations” means at any time the sum, without duplication,
of:

     (a) The aggregate amount of then outstanding and undrawn
Letters of Credit;

     (b) The aggregate amount of then outstanding and unpaid
drafts drawn and accepted under Letters of Credit; and

     (c) The aggregate amount of then outstanding Reimbursement
Amounts.

     “Letters of Credit” means, collectively, the letters of credit in Issuing
Lender’s standard form from time to time issued pursuant to Section 2.21.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute
page thereof, or any successor to or substitute for such page, providing rate quotations
comparable to those currently provided on such page, as determined by Administrative Agent
from time to time for purposes of providing quotations of interest rates applicable to
dollar deposits in the London interbank market) at approximately 11:00 a.m., London time,
two (2) Business Days prior to the commencement of such Interest Period, as the rate for
dollar deposits with a maturity comparable to such Interest Period. In the event that such
rate is not available at such time for any reason, then the “LIBO Rate” with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of
$5,000,000.00 and for a maturity comparable to such Interest Period are offered by the
principal London office of the Lender in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period.

     “Lien or Encumbrance” and “Liens and Encumbrances” mean, respectively,
each and all of the following:

     (a) Any Lease or other right to use or occupy the
Improvements or a Qualified Property;

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     (b) Any assignment as security, conditional sale, grant in
trust, lien, mortgage, pledge, security interest, title retention
arrangement, other encumbrance, or other interest or right securing the
payment of money or the performance of any other liability or obligation,
whether voluntarily or involuntarily created (including, without limitation,
Involuntary Liens) and whether arising by agreement, document, or
instrument, under any law, ordinance, regulation, or rule (federal,
state, or local), or otherwise; and

     (c) Any option, right of first refusal, or other interest or
right.

     “Loan Documents” means this Agreement, the Notes, the Mortgage Instruments, the
Environmental Agreements, the Borrower Assumption Agreements, the Assignments of Ownership
Interest, the Repayment Guaranty and any other agreements, assignments, documents or
instruments now or hereafter evidencing, guarantying or securing the Aggregate Commitment
and any and all Advances, as such documents may be amended, restated, supplemented or
otherwise modified from time to time.

     “Loan Party” means Borrower, Guarantor and each other Person that becomes
primarily or secondarily obligated with respect to the Obligations at any time or that
provides security for the payment or performance of the Obligations.

     “Marketable Securities” means Investments in Ownership Interest or debt
securities issued by any Person (other than an Investment Affiliate) which are publicly
traded on a national exchange, excluding cash equivalents.

     “Material Adverse Change” means (a) any material adverse change in the assets,
liabilities, financial condition, or results of operations of either Operating Borrower or
Guarantor, or, taken as a whole, the Project Borrowers, (b) a material impairment of the
ability of any Loan Party to perform its material obligations under any Loan Document to
which it is a party, (c) a material adverse effect upon the legality, validity or binding
nature of any of the Obligations of Borrower, Guarantor or any other Loan Party, or (d) a
material adverse change in the Collateral, Administrative Agent’s Liens and Encumbrances on
the Collateral or the priority of such Liens and Encumbrances.

     “Maturity Date” means January 6, 2013.

     “Modified Funds From Operations” means, with respect to the Consolidated Group
for any period, consolidated net income of the Consolidated Group as determined in
accordance with GAAP plus, to the extent previously deducted, depreciation of real estate
assets, amortization of lease related costs, real estate acquisition costs and expenses,
impairment of real estate assets and gains or losses from sales of assets and the
Consolidated Group’s Pro Rata Share of depreciation of real estate assets, amortization of
lease related costs, real estate acquisition costs and expenses, impairment of real estate
assets and gains or losses from sales of assets for the Investment Affiliates.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

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     “Mortgage Instrument” means (i) those certain Deeds of Trust, Assignment of
Rents, Security Agreement and Fixture Filing, or (ii) those certain Real Estate Mortgages,
Assignment of Rents, Security Agreement and Fixture Filing, now or hereafter executed by the
applicable Project Borrower for the benefit of Administrative Agent for the benefit of
Lenders, securing the Obligations and creating a first lien on the Qualified Property
described therein and all other fixtures and improvements now or hereafter owned, acquired
or constructed by such Project Borrower and situated thereon, and all rights and easements
appurtenant thereto, as the same may be amended, restated, supplemented or otherwise
modified from time to time. The form of the Mortgage Instrument is attached hereto as
Exhibit G.

     “Net Equity Contributions” means with respect to any Person, such Person’s
total issuance of common stock as reported on such Person’s 10-K or 10-Q SEC filings.

     “NOI” means, with respect to any Qualified Property for any period, (a)
“property rental and other income” (as determined by GAAP) attributable to such Qualified
Property accruing for such period, plus
(b) all master lease income, less (c) the amount of all expenses (as determined in
accordance with GAAP) incurred in connection with and directly attributable to the ownership
and operation of such Qualified Property for such period, excluding any general and
administrative expenses related to the operation of Operating Borrower or the applicable
Project Borrower, any interest expense or other debt service charges, any real estate
acquisition costs and expenses, any amortization related to above-market or below-market
leases and any non-cash charges such as impairment of real estate assets and depreciation or
amortization of financing costs, all as for the four (4) consecutive fiscal quarters most
recently ended and as approved by Administrative Agent in its reasonable discretion;
provided, however, with respect to the Eligible Collateral, if the Qualified Property has
been owned by a Project Borrower for less than twelve (12) months, the NOI will be based
upon income and expenses for a one (1) year period set forth in an Appraisal reviewed and
found to be acceptable to Administrative Agent; provided further, however, if the Qualified
Property has been owned by a Project Borrower for twelve (12) months or more but has not
generated property rental and other income for four (4) complete fiscal quarters, the NOI
for such Qualified Property will be calculated as specified in clauses (a), (b), and (c)
above but on an annualized basis, provided, that once such Qualified Property has generated
property rental and other income for four (4) complete fiscal quarters, it is agreed that
the NOI for such Qualified Property will be calculated as specified in clauses (a), (b) and
(c) above based on the above-described four (4) consecutive fiscal quarters most recently
ended.

     “Notes” means those certain Revolving Promissory Notes in the form attached
hereto as Exhibit H, to be executed by Borrower from time to time and payable to the
applicable Lender, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

     “Obligations” means all unpaid principal of and accrued and unpaid interest on
the Outstanding Credit Exposure, any and all obligations, contingent or otherwise, whether
now existing or hereafter arising of Borrower or any other Loan Party to Lenders arising
under or in connection with any Swap Agreements, all accrued and unpaid fees

-17-

 

and all
expenses, reimbursements, indemnities and other obligations of Borrower or any other Loan
Party to Lenders or any indemnified party arising under the Loan Documents, in each case
whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute or
contingent, joint or several, due or to become due, now existing or hereafter arising.

     “Operating Borrower” means COLE REIT III OPERATING PARTNERSHIP, LP., a Delaware
limited partnership.

     “Other Amounts” means all amounts, other than principal and interest, payable
by Borrower or any other Loan Party under this Agreement or any other Loan Documents to or
for the benefit of Lenders, including, without limitation, fees, costs and expenses owed
pursuant to this Agreement.

     “Outstanding Credit Exposure” means the sum of (a) the aggregate principal
amount of Advances outstanding at such time, plus (b) an amount equal to the Letter of
Credit Obligations at such time.

     “Ownership Interest” means any and all shares, rights to purchase, warrants or
options (whether or not currently exercisable), participations, or other equivalents of or
interests in (however designated) the equity (which includes, but is not limited to, common
stock, preferred stock and partnership, joint venture and limited liability company
interests) of a designated Person (excluding any debt securities that are convertible into,
or exchangeable for, such equity).

     “PBGC” means as defined in Section 5.1(k)(iii).

     “Permitted Exceptions” means:

     (a) Involuntary Liens for Impositions that are not
delinquent or are being contested in compliance with clause (b)(i)
through (iii) of this definition;

     (b) Involuntary Liens (other than for Impositions) with
respect to which Operating Borrower or the applicable Project Borrower that
secure only amounts not delinquent or if delinquent, not yet filed and
satisfies each of the following requirements for permitted contests: (i)
Operating Borrower or the applicable Project Borrower contests the validity
of such Involuntary Lien in good faith by appropriate legal proceedings and
in accordance with the applicable Mortgage Instrument, (ii) Operating
Borrower or the applicable Project Borrower obtains title insurance
endorsements and obtains bonds or other security, in a manner acceptable to
Administrative Agent in its sole but reasonable business judgment
discretion, (iii) Operating Borrower demonstrates to Administrative Agent’s
reasonable satisfaction that the procedures will conclusively operate to
prevent the sale of any part of the Collateral in order to satisfy the
Involuntary Lien prior to the final determination of

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such proceedings, and
(iv) the aggregate amount of such Involuntary Liens with respect to
Operating Borrower does not exceed $1,000,000 ;

     (c) All items, except Impositions, in Schedule B to each
Title Policy;

     (d) With respect to each Qualified Property, Tenant’s rights,
title and interest in such Qualified Property pursuant to the related Lease;

     (e) Easements granted to any Governmental Authority or
necessary or desirable for any access, drainage, utility or similar service
in connection with the operation of the Collateral and

     (f) Other Liens and Encumbrances consented to by
Administrative Agent in advance in writing from time to time and subject to
such requirements as Administrative Agent may reasonably impose.

     “Permitted Investments” means (a) any Investment in direct obligations of
United States of America or any agency thereof, or obligations guaranteed by the United
States of America or any agency thereof, provided that such obligations mature
within one year after the date of acquisition thereof; (b) Investment in commercial paper
rated in the highest rate by two or more national credit rating agencies and maturing not
more than ninety (90) days from the date of creation thereof; (c) Investment in time
deposits with and certificates of deposits and bankers acceptances issued by Lender or any
United States bank having capital surplus and undivided profits aggregating at least
$10,000,000; (d) Investment in the Qualified Properties and the other Collateral; (e)
Investments that do not violate the provisions of Section 7.8 below, (f) bonds or
other obligations having a short term unsecured debt rating of not less than A-1+ by S&P and
P-1+ by Moody’s and having a long term debt rating of not less than A by S&P and A1 by
Moody’s issued by or by authority of any state of the United States, any territory or
possession of the United States, including the Commonwealth of Puerto Rico and agencies
thereof, or any political subdivision of any of the foregoing, (g) repurchase agreements
issued by an entity rated not less than A-1+ by S&P, and not less than P-1 by Moody’s which
are secured by U.S. Government securities of the type described in clause (a) of this
definition maturing on or prior to a date one month from the date the repurchase agreement
is entered into, (h) short term promissory notes rated not less than A-1+ by S&P, and not
less than P-1 by Moody’s maturing or to be redeemable upon the option of the holders thereof
on or prior to a date one month from the date of their purchase, and (i) other permitted
investments pursuant to an investment policy of Operating Borrower approved by
Administrative Agent.

     “Person” means a natural person, a partnership, a joint venture, an
unincorporated association, a limited liability company, a corporation, a trust, any other
legal entity, or any Governmental Authority.

     “Plan” means as defined in Section 5.1(k)(ii).

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     “Plus-Credit Tenant” means any Tenant that has an S&P rating of BBB+ or better,
a Moody’s rating of Baa1 or better, or a Fitch Rating of BBB+ or better.

     “Prime Rate” means the rate of interest per annum publicly announced from time
to time by JPMorgan Chase Bank, N.A. as its prime rate; each change in the Prime Rate shall
be effective from and including the date such change is publicly announced as being
effective. The Prime Rate is a reference rate and is not necessarily the lowest rate.

     “Project” means any real estate asset directly owned by any member of the
Consolidated Group, any of its Subsidiaries or any Investment Affiliate.

     “Project Borrowers” means, severally and collectively, one or more wholly-owned
Subsidiaries of Operating Borrower (and if applicable, the applicable Subsidiary of
Operating Borrower) or Guarantor that owns the fee interest (subject only to Permitted
Exceptions) in and to a Qualified Property and, except for an Initial Project Borrower,
that, with the consent of Administrative Agent, executes a Borrower Assumption Agreement,
subject to release as provided in Section 2.19(b) and Section 4.3.

     “Protective Advance” means amounts paid by Administrative Agent (either
directly or through an advance from Lenders) to pay the following amounts:

     (a) All amounts that are necessary to protect the validity,
priority and enforceability of the Liens and Encumbrances in favor of
Administrative Agent for the benefit of Lenders arising pursuant to the Loan
Documents (such amounts to include, without limitation, payment of taxes,
assessments and other Liens and Encumbrances that may have a priority
superior to the priority of the Liens and Encumbrances of Administrative
Agent on the Collateral); and

     (b) All insurance premiums that are necessary to insure the
Collateral against loss, damage or destruction pursuant to the requirements
of the Loan Documents.

     “Qualified Property” means as defined in Section 4.2.

     “Redeemable Common Stock” means, with respect to any Person, such Person’s
redeemable common stock as reported on such Person’s 10-K or 10-Q SEC filings.

     “Reimbursement Amount” means the amount Borrower is obligated to pay to an
Issuing Lender under a Letter of Credit Agreement and this Agreement in respect of a draft
drawn or drawn and accepted under the respective Letter of Credit, which amount shall be the
amount of the draft or acceptance and all costs, expenses, fees and other amounts then
payable by Borrower to an Issuing Lender under the Letter of Credit Agreement and this
Agreement.

     “Remargining Payment” means as defined in Section 2.20(c).

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     “Repayment Guaranty” means a Repayment Guaranty executed by Guarantor in favor
of Administrative Agent on behalf of Lenders, in the form attached hereto as Exhibit
K, as such agreement may be amended, modified, restated, renewed and supplemented from
time to time.

     “Required Lenders” means Lenders in the aggregate having an aggregate
Commitment Amount Percentage at least 66 2/3% of the Aggregate Commitment or, if the
Aggregate Commitment has been terminated, Lenders in the aggregate holding at least 66 2/3%
of the aggregate unpaid principal amount of the outstanding Advances; provided that the
Commitment of, and the portion of the aggregate unpaid principal amount of outstanding
Advances held or deemed held by, any Defaulting Lender shall be disregarded for purposes of
making of determination of Required Lender.

     “Requirements” means (a) any and all obligations, requirements, restrictions
and other terms and conditions in effect now or in the future by which Borrower, any Loan
Party or any or all of the Qualified Properties are bound or which are otherwise applicable
to any or all of the Qualified Properties, or occupancy, operation, ownership, or use of
Qualified Properties, (b) other terms and conditions, restrictions, and requirements imposed
by any law, ordinance, regulation, or rule (federal, state, or local), (c) any Approvals and
Permits, (d) any Permitted Exceptions, (e) any condition, covenant, restriction, easement,
right-of-way, or reservation applicable to such Qualified Property, (f) any insurance
policies, (g) any other agreement, document, or instrument to which Borrower or a Loan Party
is a party or by which Borrower, a Loan Party or any of the Qualified Properties or the
business or operations of Borrower or any Loan Party is bound, or (h) any judgment, order,
or decree of any arbitrator, other private adjudicator, or Governmental Authority to which
Borrower is a party or by which Borrower or any of the Qualified Property is bound.

     “SEC” means the United States Securities and Exchange Commission, or any
Governmental Authority succeeding to any of its principal functions.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc. and any successor thereto.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number one minus
the aggregate of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board of Governors of
the Federal Reserve System to which Lenders are subject, with respect to the Adjusted LIBO
Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board). Such reserve percentages shall include those imposed pursuant
to such Regulation D. Eurodollar Borrowings shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time under such
Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage.

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     “Subsidiary” means, with respect to any Person, a corporation, partnership,
joint venture, limited liability company or other business entity of
which a majority of the shares of securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having such power only
by reason of the happening of a contingency) are at the time beneficially owned, or the
management of which is otherwise controlled, directly, or indirectly through one or more
intermediaries, or both, by such Person. Unless otherwise specified, all references herein
to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of
Operating Borrower.

     “Swap Agreement” means any agreement with respect to any swap, forward, future
or derivative transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or securities or
economic, financial or pricing indices or measures of economic, financial or pricing risk or
value or any similar transaction or any combination of these transactions.

     “Taxes” means all income, excise and other taxes of whatever nature, as well as
all levies, imposts, duties, charges or fees of whatever nature, excluding all Excluded
Taxes.

     “TCF Indebtedness” means the revolving credit facility constituting
Indebtedness owed by Operating Borrower and certain of its Affiliates (other than the
Project Borrowers) to TCF National Bank in an aggregate principal amount available of
$25,000,000, which is secured by assets of Subsidiaries of Operating Borrower (and if
applicable, a Subsidiary of Operating Borrower) or Guarantor (other than the Project
Borrowers) and guaranteed by Guarantor.

     “Tenant” means each tenant under a Lease.

     “Title Company” means First American Title Insurance Company and any other
title company reasonably acceptable to Administrative Agent, together with any successor
thereto.

     “Title Policy” means a title insurance policy in the form of an American Land
Title Association Loan Policy extended coverage (without revision, modification or
amendment) issued by the Title Company, in form and substance reasonably satisfactory to
Administrative Agent and containing such endorsements as Administrative Agent may reasonably
require.

     “Threshold Amount” means $10,000,000.

     “Total Asset Value” means, as of any date, the sum of (without duplication),
(a) Consolidated Net Operating Income attributable to Projects owned by a member of the
Consolidated Group divided by the Capitalization Rate, plus (b) 100% of the greater of (i)
the price paid for and (ii) the GAAP-determined value of any such Projects first acquired by
any member of the Consolidated Group or that were Construction in Progress during the prior
twelve (12) months, plus (c) cash, cash equivalents and Marketable Securities owned by the
Consolidated Group as of the end of such fiscal quarter, plus

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(d)
the Consolidated Group’s Pro Rata Share of (i) Consolidated Net Operating Income
attributable to Projects owned by Investment Affiliates divided by (ii) the Capitalization
Rate (provided, that the value of such assets shall, at all times, be subject to the terms
of Section 7.8 hereof), plus (e) the Consolidated Group Pro Rata Share of the
greater of (i) the price paid for and (ii) the GAAP-determined value of such Projects first
acquired by an Investment Affiliate or that were Construction in Progress during the prior
twelve (12) months, plus (f) Construction in Progress at GAAP-determined value (provided,
that the book value of Construction in Progress shall, at all times, be subject to the terms
of Section 7.8 hereof), plus (g) the GAAP-determined value of CMBS Securities
(provided, that the value of CMBS Securities held shall, at all times, be subject to the
terms of Section 7.8 hereof), plus (h) the GAAP-determined value of Eligible Notes
Receivable (provided, that the aggregate value of Eligible Notes Receivable and CMBS
Securities held shall, at all times, be subject to the terms of Section 7.8 hereof),
and (i) the GAAP-determined value of undeveloped land (provided that the value of such
undeveloped land shall, at all times, be subject to the terms of Section 7.8
hereof).

     “Total Debt Service” means as of any date of determination and for a period of
twelve (12) consecutive months, assumed interest and principal payments on the Available
Commitment as of such date of determination, using an interest rate equal to the then
10-year Treasury Note plus 3% and a 25-year amortization period.

     “Total Liabilities” means, with respect to a Person, such Person’s total
liabilities (or equivalent) as reported on such Person’s 10-K or 10-Q SEC filings.

     “Total Stockholders Equity” means, with respect to a Person, such Person’s
total stockholders equity (or equivalent) as reported on such Person’s 10-K or 10-Q SEC
filings.

     “Type” refers to whether the rate of interest on a Borrowing or other portion
of an Advance is determined by reference to the Fixed Rate or the Floating Rate.

     “Unmatured Event of Default” means any condition or event that with notice,
passage of time, or both, would be an Event of Default.

     “Unused Fee” means as defined in Section 2.14(c).

     1.2 Accounting Terms and Determinations. Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be
made, and all financial statements required to be delivered hereunder shall be prepared, in
accordance with GAAP. When used herein, the term “financial statements” shall include the notes
and schedules thereto.

     1.3 Computation of Time Periods. In this Agreement, with respect to the computation
of periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “through and including.” Periods of days
referred to in this Agreement shall be counted in calendar days unless otherwise stated.

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     1.4 Construction. Unless the context of this Agreement clearly requires otherwise,
references to the plural include the singular and to the singular include the plural, references to
any gender include any other gender, the part includes the whole, the terms “include” and
“including” are not limiting, and the term “or” has, except where otherwise indicated, the
inclusive meaning represented by the phrase “and/or.” Unless otherwise indicated, all approvals
and determinations by Administrative Agent shall be made in the sole and absolute discretion of
Administrative Agent and shall be conclusive absent manifest error. The words “hereof,” “herein,”
“hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and
not to any particular provision of this Agreement. Article, section, subsection, clause, exhibit
and schedule references are to this Agreement, unless otherwise specified. Any reference to this
Agreement or the other Loan Documents includes any and all permitted alterations, amendments,
changes, extensions, modifications, renewals, or supplements thereto or thereof, as applicable.
All terms that are used herein and defined by reference to other documents shall be deemed to refer
to such documents as in effect on the date of this Agreement and such amendments to such documents
after the date hereof to the extent that the Lender has approved such amendments in writing.

     1.5 No Presumption Against Any Party. Neither this Agreement nor any other Loan
Document nor any uncertainty or ambiguity herein or therein shall be construed or resolved using
any presumption against any party hereto or thereto, whether under any rule of construction or
otherwise. On the contrary, this Agreement and the other Loan Documents have been reviewed by each
of the parties and their counsel and, in the case of any ambiguity or uncertainty, shall be
construed and interpreted, according to the ordinary meaning of the words used so as to fairly
accomplish the purposes and intentions of all parties hereto.

ARTICLE 2

COMMITMENT

     2.1 Commitment.

     (a) Right to Advances Generally. Each Lender severally agrees, on the terms
and conditions set forth in this Agreement, to make Advances to Borrower from time to
time in amounts not to exceed in the aggregate its Commitment Amount. Each Advance
hereunder shall consist of Advances made by the several Lenders ratably in proportion
according to each Lender’s Commitment Amount Percentage. No Lender shall be responsible
for the failure of any Lender to perform its obligations to make Advances hereunder, and
the Commitment Amount of any Lender shall not be increased or decreased as a result of
the failure by any Lender to perform its obligation to make Advances hereunder. BORROWER
ACKNOWLEDGES AND AGREES THAT THE ADVANCES TO BE MADE HEREUNDER SHALL CONSIST OF THE
AVAILABLE COMMITMENT ONLY AND, EXCEPT FOR THE AVAILABLE COMMITMENT, LENDERS SHALL HAVE NO
OBLIGATION TO MAKE ADVANCES TO OR FOR THE BENEFIT OF BORROWER OR ANY OTHER PERSON.

     (b) Revolving Nature of Commitment. The Commitment shall constitute a
revolving line of credit and Advances repaid may be reborrowed on a revolving basis

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through the Maturity Date. Although the principal balance of the outstanding
Advances may be zero from time to time, the Loan Documents will remain in full force and
effect until all obligations of Lenders to make Advances expire and all Obligations are
paid and performed in full. Upon the occurrence and during the continuance of an
Unmatured Event of Default, Lenders shall not be required to make any Advances and
Administrative Agent, upon the direction of the Required Lenders, may suspend the
obligation of Lenders to make Advances. Upon the occurrence and during the continuance
of an Event of Default, Lenders shall not be required to make any Advances and
Administrative Agent, upon the direction of the Required Lenders, may suspend or
terminate the obligation of Lenders to make Advances. The obligation of Borrower to
repay Advances is evidenced by the Notes.

(c) Increase in Aggregate Commitment. If the Aggregate Commitment is less
than $200,000,000 as of the Effective Date, Borrower shall have the right to request one
or more increases of the Aggregate Commitment up to an aggregate total of $200,000,000.00
at any time (each, an “Accordion Increase”), provided that Borrower is in
compliance with all terms and conditions of the Loan Documents, and sufficient
Commitments can be arranged to accommodate the request (Administrative Agent agrees to
use commercially reasonable best efforts to arrange the Commitments to satisfy the
requested Accordion Increase). Lenders in place as of the Effective Date will have first
opportunity to increase their respective funding Commitments hereunder; however, if they
should choose not to, Operating Borrower or Administrative Agent shall designate one or
more new institutions (which new institution shall be acceptable to Borrower and Lenders)
to provide new Commitments to achieve the Accordion Increase.

     2.2 Requests for Advances.

     (a) Advances. Each Advance shall be requested and, subject to the Available
Commitment, made as described in Section 2.16. Borrower acknowledges that
Section 2.16 only provides the method for the making of Advances and does not set
forth the method for the selection of Interest Rates as applicable to any Borrowing.
Accordingly, in addition to the requirements of Section 2.16, in order to select
the applicable Interest Rate from time to time Borrower shall comply with this
Section 2.2.

     (b) Interest Elections. Each Advance initially shall be a Floating Rate
Borrowing unless Borrower has elected a Eurodollar Borrowing as provided herein.
Borrower may elect to convert a Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods
therefor, all as provided in this Section 2.2. Borrower may elect different
options with respect to different portions of the affected Borrowing, and each such
portion shall be considered a separate Borrowing.

     (c) Making an Election. To make an election pursuant to this Section
2.2, Operating Borrower shall notify Administrative Agent of such election by
telephone or electronic transmission (including e-mail) (i) in the case of a Eurodollar
Borrowing, not later than 3:00 p.m., New York City time, three (3) Business Days before
the date

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of the proposed Borrowing, or (ii) in the case of a Floating Rate Borrowing, not
later than 3:00 p.m., New York City time, one (1) Business Day before the date of the
proposed Borrowing. Each such notice shall be irrevocable and each telephonic notice
shall be confirmed promptly by electronic transmission (including e-mail), hand delivery
or telecopy to Administrative Agent of a written Interest Election Request signed by
Operating Borrower.

     (d) Content of Election. Each telephonic and written Interest Election
Request shall specify the following information:

     (i) the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the
information to be specified pursuant to clauses (iii) and (iv) below shall be
specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be a Floating Rate Borrowing or a
Eurodollar Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period
to be applicable thereto after giving effect to such election, which shall be a
period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify
an Interest Period, it will be deemed to have specified an Interest Period of one month.

     (e) Permitted Borrowings. Borrowings of more than one Type may be
outstanding at the same time; provided that there shall not at any time be more than a
total of five (5) Eurodollar Borrowings outstanding. Each Eurodollar Borrowing shall be
in an amount not less than $500,000.00. No Interest Period may be elected that would end
after the Maturity Date.

     (f) Failure of Timely Election. If Operating Borrower fails to deliver a
timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end
of the Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be deemed
continued as a Eurodollar Borrowing having an Interest Period of one month.
Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is
continuing, (i) no outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing, and (ii) unless repaid, each Eurodollar Borrowing shall be converted to a
Floating Rate Borrowing at the end of the Interest Period applicable thereto.

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     2.3 Funding of New Advances.

     (a) Generally. Each Lender shall make each Advance to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available funds by
11:00 a.m., Phoenix, Arizona time, to the account of Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. Subject to the restrictions
set forth in this Agreement, Administrative Agent will make such Advances available to
Borrower by promptly (but in no event later than 3:00 p.m., Phoenix, AZ time) crediting
the amounts so received, in like funds, to an account of Borrower maintained with
Administrative Agent and designated by Borrower in Administrative Agent’s Disbursement
and Rate Management Signature Authorization and Instruction Form.

     (b) Advance Fundings. Unless Administrative Agent shall have received
notice from a Lender prior to the proposed date of any Advance that such Lender will not
make available to Administrative Agent such Lender’s share of such Advance,
Administrative Agent may assume that such Lender has made such share available on such
date in accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to Borrower a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Advance available to Borrower by
Administrative Agent, then the applicable Lender and Borrower severally agree to pay to
Administrative Agent forthwith on demand such corresponding amount with interest thereon,
for each day from and including the date such amount is made available to Borrower by
Administrative Agent to but excluding the date of payment to Administrative Agent, at (i)
in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on interbank
compensation or (ii) in the case of Borrower, the then effective Interest Rate applicable
to Floating Rate Borrowings. If such Lender pays such amount to Administrative Agent,
then such amount shall constitute such Lender’s Advance. Any payment by Borrower shall
be without prejudice to any claim Borrower may have against a Lender that shall have
failed to make such payment to Administrative Agent.

     2.4 Prepayment of Advances; Termination and Reductions of Commitments.

     (a) Right to Prepay. Borrower shall have the right at any time and from
time to time to prepay any outstanding principal in whole or in part, subject to prior
notice in accordance with Section 2.4(b).

     (b) Method of Prepayment. Operating Borrower shall notify Administrative
Agent by telephone (confirmed by telecopy) or electronic transmission (including e-mail)
of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not
later than 10:00 a.m., Phoenix, Arizona, time, three (3) Business Days before the date of
prepayment, or (ii) in the case of prepayment of a Floating Rate Borrowing, not later
than 10:00 a.m., Phoenix, Arizona, time, on the date of prepayment. Each such notice
shall be irrevocable and shall specify the prepayment

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date and the principal amount to be prepaid. Prepayments shall be accompanied by
accrued interest on the amount prepaid, plus any other amounts due under Section
2.8.

(c) Borrower may at any time terminate, without premium or penalty (other than, with
respect to Eurodollar Borrowings, payments or fees that may become due under Section
2.4(b) or Section 2.8), the Aggregate Commitment upon (i) the payment in full
of all outstanding Advances, together with accrued and unpaid interest thereon, (ii) the
payment in full of the accrued and unpaid fees and (iii) the payment in full of all
reimbursable expenses and other Obligations together with accrued and unpaid interest
thereon. In addition, Borrower may from time to time reduce, without premium or penalty
(other than, with respect to Eurodollar Borrowings, payments or fees that may become due
under Section 2.4(b) or Section 2.8), the Aggregate Commitment, provided
that Borrower shall not reduce the Aggregate Commitment (1) if, after giving effect to
any concurrent prepayment of the Advances in accordance with this Section 2.4 and
payment of any Remargining Payment in accordance with Section 2.20, the
Outstanding Credit Exposure would exceed the Available Commitment or (2) by an amount
that exceeds fifty percent (50%) of the then Aggregate Commitment (unless Borrower is
terminating such Aggregate Commitment in full as provided above); provided, however, in
no event shall Borrower be entitled to make any such reduction in the Aggregate
Commitment more frequently than once per calendar year or at any time from and after the
date that is one hundred eighty (180) days prior to the Maturity Date. Any termination
or reduction of the Aggregate Commitment shall be permanent. Each reduction of the
Aggregate Commitment shall be made ratably among the Lenders in accordance with their
respective Commitment Amount Percentage. Operating Borrower shall notify Administrative
Agent of any election by Borrower to terminate or reduce the Aggregate Commitment under
this paragraph at least five (5) Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date thereof.
Promptly following receipt of any such notice, Administrative Agent shall advise the
Lenders of the contents thereof. Any notice of termination or reduction of Aggregate
Commitment delivered by Operating Borrower may state that such notice is conditioned upon
the effectiveness of other credit facilities or the receipt of the proceeds from the
issuance of other Indebtedness or any other event, in which case such notice may be
revoked by Operating Borrower (by notice to Administrative Agent on or prior to the
specified effective date) if such condition is not satisfied; provided, however,
Operating Borrower shall promptly reimburse Administrative Agent any costs or expenses
incurred by Administrative Agent in connection with Operating Borrower’s delivery of any
such notice of termination or reduction of Aggregate Commitment and the subsequent
cancellation thereof.

     2.5 Interest.

     (a) Floating Rate Borrowing. Each Floating Rate Borrowing shall bear
interest at the Floating Rate.

     (b) Eurodollar Borrowing. Each Eurodollar Borrowing shall bear interest at
the Fixed Rate for the Interest Period in effect for such Borrowing.

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     (c) Default Interest Rate. Notwithstanding the foregoing, if any principal
of or interest on any Advance or any fee or other amount payable by Borrower hereunder is
not paid when due, whether at stated maturity, upon acceleration or otherwise and such
failure constitutes an Event of Default, such overdue amount shall bear interest during
the continuance of such Event of Default, commencing as the date of such Event of
Default, after as well as before judgment, at a rate per annum (the “Default Interest
Rate”) equal to (i) in the case of overdue principal or interest of any Advance, 5%
plus the rate otherwise applicable to such Advance as provided in the preceding
paragraphs of this Section, or (ii) in the case of any other amount, 5% plus the rate
applicable to Floating Rate Borrowings as provided in Section 2.5(a).

     (d) Intentionally Omitted.

     (e) Interest Payments. Accrued interest on each Borrowing shall be payable
in arrears on each Interest Payment Date for such Borrowing and upon maturity; provided
that (i) Default Interest accrued pursuant to paragraph (c) of this Section 2.5
shall be payable on demand, (ii) in the event of any repayment or prepayment of any
Borrowing (other than a prepayment of a Floating Rate Borrowing), accrued interest on the
principal amount repaid or prepaid shall be payable on the date of such repayment or
prepayment, and (iii) in the event of any conversion of any Eurodollar Borrowing prior to
the end of the current Interest Period therefor, accrued interest on such Borrowing shall
be payable on the effective date of such conversion.

     (f) Computation of Interest. All interest hereunder shall be computed on
the basis of a year of three hundred sixty (360) days, and in each case shall be payable
for the actual number of days elapsed (including the first day but excluding the last
day). The applicable CB Floating Rate, Prime Rate or Adjusted LIBO Rate shall be
determined by Administrative Agent in accordance with the terms hereof and such
determination shall be conclusive absent manifest error.

     (g) Advances for Interest and Fees. If Borrower fails to pay any interest
or fees when due, Borrower hereby authorizes the Lenders to make Advances to themselves
to pay such amounts under this Agreement, so long as such Advances shall not cause the
Outstanding Credit Exposure to exceed the Available Commitment. Such authorization is
irrevocable and no further direction or authorization shall be required for the Lenders
to make such Advances. The Lenders may make such Advances notwithstanding that Borrower
may be in default under the terms of this Agreement or any other Loan Document. Nothing
in this provision shall prevent Borrower from paying interest and fees from its own
funds, or otherwise excuse Borrower’s obligation to pay such interest and fees.

     2.6 Alternate Rate of Interest. If prior to the commencement of any Interest Period
for a Eurodollar Borrowing, Administrative Agent determines (which determination shall be
conclusive absent manifest error) that:

     (a) adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate for such Interest Period; or

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     (b) the Adjusted LIBO Rate for such Interest Period will not adequately and fairly
reflect the cost to the Lenders of making or maintaining the Eurodollar Borrowing for
such Interest Period;

then Administrative Agent shall give notice thereof to Borrower by telephone or telecopy as
promptly as practicable thereafter and, until Administrative Agent notifies Borrower that the
circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that
requests the conversion of any Eurodollar Borrowing to or continuation of any Eurodollar Borrowing
as such shall be ineffective, and (ii) any request for a new Eurodollar Borrowing shall be made as
a Floating Rate Borrowing.

     2.7 Increased Costs.

     (a) Change in Law. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate); or

     (ii) impose on any Lender or the London interbank market any other condition
affecting this Agreement or Eurodollar Borrowings;

and the result of any of the foregoing shall be to increase the cost to any Lender of making
or maintaining any Eurodollar Borrowing (or of maintaining its obligation to make any such
Borrowing) or to increase the cost or to reduce the amount of any sum received or receivable
by any Lender (whether of principal, interest or otherwise), then Borrower will pay to
Administrative Agent for the benefit of such Lender such additional amount or amounts as
will compensate such Lender for such additional costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate of
return on such Lender’s capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement or the Advances made by said Lender to a level
below that which said Lender or said Lender’s holding company would have achieved but for
such Change in Law (taking into consideration said Lender’s policies with respect to
capital adequacy), then from time to time Borrower will pay to Administrative Agent for
the benefit of any such Lender such additional amount or amounts as will compensate said
Lender or said Lender’s holding company for any such reduction suffered.

     (c) Lender’s Certificate. A certificate of the Lender setting forth the
amount or amounts necessary to compensate the Lender or its holding company, as the case
may be, as specified in Section 2.7(a) shall be delivered to Borrower and shall
be conclusive absent manifest error. Borrower shall pay to Administrative Agent for the
benefit of the Lender the amount shown as due on any such certificate within ten (10)
days after receipt thereof.

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     (d) No Waiver. Failure or delay on the part of Administrative Agent to
demand compensation pursuant to this Section 2.7 shall not constitute a waiver of
Administrative Agent’s right to demand such compensation; provided that Borrower shall
not be required to compensate Administrative Agent pursuant to this Section 2.7
for any increased costs or reductions incurred more than two hundred seventy (270) days
prior to the date that Administrative Agent notifies Borrower of the Change in Law giving
rise to such increased costs or reductions and of Administrative Agent’s intention to
claim compensation therefor; provided further that, if the Change in Law giving rise to
such increased costs or reductions is retroactive, then the 270-day period referred to
above shall be extended to include the period of retroactive effect thereof.

     2.8 Break Funding Payments. In the event of (a) the payment of any principal of any
Eurodollar Borrowing other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any Eurodollar Borrowing other than on
the last day of the Interest Period applicable thereto, or (c) the failure to borrow, convert,
continue or prepay any Eurodollar Borrowing on the date specified in any notice delivered by
Borrower pursuant hereto, then, in any such event, Borrower shall compensate Administrative Agent
(for the benefit of each applicable Lender) for the loss, cost and expense attributable to such
event, plus a $250.00 administrative fee payable to Administrative Agent. In the case of a
Eurodollar Borrowing, such loss, cost or expense to Administrative Agent (for the benefit of each
applicable Lender) shall be deemed to equal an amount reasonably determined by Administrative Agent
and each applicable Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Advance had such event not occurred, at the Fixed Rate that
would have been applicable to such Advance, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert
or continue, for the period that would have been the Interest Period for such Advance), over (ii)
the amount of interest which would accrue on such principal amount for such period at the interest
rate which Administrative Agent would bid were it to bid, at the commencement of such period, for
dollar deposits of a comparable amount and period from other Lenders in the eurodollar market. A
certificate of Administrative Agent setting forth any amount or amounts that Lenders are entitled
to receive pursuant to this Section 2.8 shall be delivered to Borrower and shall be
conclusive absent manifest error. Borrower shall pay Administrative Agent the amount shown as due
on any such certificate within ten (10) days after receipt thereof.

     2.9 Electronic Transmission of Draw Requests and Other Documents. Administrative
Agent, in its sole and absolute discretion, may elect to permit Borrower to transmit Interest
Election Requests, Borrowing Base Reports and Collateral Certificates, requests for Advances and
notices of prepayments under Section 2.4 electronically through an Internet website
developed by Administrative Agent (“Website”). Administrative Agent shall deliver written
notice of such election to Borrower. Thereafter, upon completion of enrollment for appropriate
access on the Website, any of the Persons authorized to request Advances may transmit Interest
Election Requests, Borrowing Base Reports and Collateral Certificates, requests for Advances and
notices of prepayments under Section 2.4 to Administrative Agent through the Website and
such transmission shall be considered a “writing” in satisfaction of the requirement under this
Agreement for a written Interest Election Request, Borrowing Base Report and Collateral
Certificate, request for Advance and notice of prepayment under Section 2.4. Borrower’s
access

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to, and use of, the Website shall be subject to Borrower’s compliance with all of the terms
and conditions established by Administrative Agent for access to and use of the Website, including,
without limitation, the Terms of Use and Privacy Policy, as published on the Website and amended
from time to time. Administrative Agent reserves the right to deny Borrower access to the Website,
or withdraw its permission for Borrower to furnish Interest Election Requests, Borrowing Base
Reports and Collateral Certificates, requests for Advances and notices of prepayments under
Section 2.4 through the Website, at any time, for any reason, without notice. The ability
of Borrower to furnish Interest Election Requests, Borrowing Base Reports and Collateral
Certificates, requests for Advances and notices of prepayments under Section 2.4 through
the Website is at all times subject to the availability of the Website.

     2.10 Maturity of the Obligations. On the Maturity Date or, if sooner, upon
acceleration after an Event of Default in accordance with this Agreement, all Obligations, together
with all principal, interest, and other charges outstanding pursuant to the Loan Documents
shall be immediately due and payable.

     2.11 Taxes.

     (a) No Deduction For Taxes. Any and all payments by or on account of any
obligation of Borrower hereunder shall be made free and clear of and without deduction
for any Taxes; provided that if Borrower shall be required to deduct any Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums payable under
this Section) Administrative Agent or Lender (as the case may be) receives an amount
equal to the sum it would have received had no such deductions been made, (ii) Borrower
shall make such deductions and (iii) Borrower shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law. Notwithstanding
anything contained in this Section 2.11 or any Loan Document, in no event shall
Borrower be responsible for any amounts constituting or increases relating to Excluded
Taxes.

     (b) Other Taxes. In addition, Borrower shall pay any other Taxes to the
relevant Governmental Authority in accordance with applicable law, except for such Taxes
being contested in a manner provided in paragraph (b)(i) through (iii) of the
definition of “Permitted Exceptions.”

     (c) Tax Indemnity.

     (i) Borrower shall indemnify Administrative Agent and each Lender, within ten
(10) days after written demand therefor, for the full amount of any Taxes paid by
Administrative Agent or such Lender, as the case may be, on or with respect to any
payment by or on account of any obligation of Borrower hereunder and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether
or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability
delivered to Borrower by a Lender, or by Administrative Agent on its own behalf or
on behalf of a Lender, shall be

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conclusive absent manifest error. The agreements in this clause (i) shall
survive the resignation and/or replacement of Administrative Agent, any assignment
of rights by, or the replacement of, a Lender or Issuing Lender, the termination of
the Aggregate Commitments and the repayment, satisfaction or discharge of all other
Obligations. Notwithstanding anything contained in this Section 2.11 or any
Loan Document, in no event shall Borrower be required to indemnify any Person for
Excluded Taxes.

     (ii) Without limiting the provisions of subsection (a) or (b) above, each
Lender and Issuing Lender shall, and does hereby, indemnify Borrower and
Administrative Agent, and shall make payment in respect thereof within 10 days after
demand therefor, against any and all Taxes and any and all related losses, claims,
liabilities, penalties, interest and expenses (including the fees, charges and
disbursements of any counsel for Borrower or Administrative Agent) incurred by or
asserted against Borrower or Administrative Agent by any Governmental Authority as a
result of the failure by such Lender or Issuing Lender, as the case may be, to
deliver, or as a result of the inaccuracy, inadequacy or deficiency of, any
documentation required to be delivered by such Lender or Issuing Lender, as the case
may be, to Borrower or Administrative Agent pursuant to subsection (e). Each Lender
and Issuing Lender hereby authorizes Administrative Agent to set off and apply any
and all amounts at any time owing to such Lender or Issuing Lender, as the case may
be, under this Agreement or any other Loan Document against any amount due to
Administrative Agent under this clause (ii). The agreements in this clause (ii)
shall survive the resignation and/or replacement of Administrative Agent, any
assignment of rights by, or the replacement of, a Lender or Issuing Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all other Obligations.

     (d) Evidence of Payment. As soon as practicable after any payment of Taxes
by Borrower to a Governmental Authority, Borrower shall deliver to Administrative Agent
the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to Administrative Agent.

     (e) Status of Lenders; Tax Documentation.

     (i) Each Lender shall deliver to Borrower and to Administrative Agent, at the
time or times prescribed by applicable Laws or when reasonably requested by Borrower
or Administrative Agent, such properly completed and executed documentation
prescribed by applicable Laws or by the taxing authorities of any jurisdiction and
such other reasonably requested information as will permit Borrower or
Administrative Agent, as the case may be, to determine (A) whether or not payments
made hereunder or under any other Loan Document are subject to Taxes, (B) if
applicable, the required rate of withholding or deduction, and (C) such Lender’s
entitlement to any available exemption from, or reduction of, applicable Taxes in
respect of all payments to be made to such

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Lender by Borrower pursuant to this Agreement or otherwise to establish such
Lender’s status for withholding tax purposes in the applicable jurisdiction.

     (ii) Without limiting the generality of the foregoing,

     (A) any Lender that is a “United States person” within the meaning of Section 7701(a)(30) of
the Code shall deliver to Borrower and Administrative Agent executed originals of Internal Revenue
Service Form W-9 or such other documentation or information prescribed by applicable Laws or
reasonably requested by Borrower or Administrative Agent as will enable Borrower or Administrative
Agent, as the case may be, to determine whether or not such Lender is subject to backup withholding
or information reporting requirements; and

     (B) each Foreign Lender that is entitled under the Code or any applicable treaty to an
exemption from or reduction of withholding tax with respect to payments hereunder or under any
other Loan Document shall deliver to Borrower and Administrative Agent (in such number of copies as
shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the reasonable request of
Borrower or Administrative Agent, but only if such Foreign Lender is legally entitled to do so),
such properly completed and executed documentation prescribed by applicable Law or reasonably
requested by Borrower as will permit such payments to be made without withholding or at a reduced
rate.

     (iii) Each Lender shall promptly (A) notify Borrower and Administrative Agent
of any change in circumstances which would modify or render invalid any claimed
exemption or reduction, and (B) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to avoid
any requirement of applicable Laws of any jurisdiction that Borrower or
Administrative Agent make any withholding or deduction for Taxes from amounts
payable to such Lender.

     (f) Tax Refunds. If Administrative Agent or a Lender receives a refund of
any Taxes as to which it reasonably determines that it has been indemnified by Borrower
or with respect to which Borrower has paid additional amounts pursuant to this
Section 2.11, it shall pay over such refund to Borrower (but only to the extent
of indemnity payments made, or additional amounts paid, by Borrower under this
Section 2.11 with respect to Taxes giving rise to such refund), net of all
out-of-pocket expenses of Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such
refund); provided, that Borrower, upon the request of Administrative Agent or such
Lender, agrees to repay the amount paid over to Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to Administrative Agent or
such Lender in the event Administrative Agent or such Lender is required to repay such
refund to such Governmental Authority. This Section 2.11 shall not be construed
to require Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to Borrower or any
other Person.

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     2.12 Repayment; Evidence of Debt.

     (a) Repayment at Maturity. Borrower hereby unconditionally promises to pay
to Administrative Agent for the account of each Lender the then unpaid principal amount
of the Advances and all unpaid accrued interest on the Maturity Date.

     (b) Lender Accounting. Each Lender shall maintain in accordance with its
usual practice an accounting of the indebtedness of Borrower to such Lender resulting
from each Advance made by such Lender, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder.

     (c) Administrative Agent Accounting. Administrative Agent shall maintain an
accounting of (i) the amount of each Advance made hereunder, the Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from Borrower to each Lender hereunder and (iii) the
amount of any sum received by Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

     (d) Prima Facie Evidence. The entries made in the accounting maintained
pursuant to paragraph (b) or (c) of this Section 2.12 shall be prima
facie evidence of the existence and amounts of the obligations recorded therein;
provided that the failure of any Lender or Administrative Agent to maintain such
accounting or any error therein shall not in any manner affect the obligation of Borrower
to repay the Advances in accordance with the terms of this Agreement.

     (e) Notes. The Advances made by each Lender shall be evidenced by the Notes
executed by Borrower in favor of such Lender.

     2.13 Maximum Interest Rate.

     (a) Notwithstanding anything to the contrary contained in this Agreement, Borrower
shall not be obligated to pay, and Lenders shall not be entitled to charge, collect,
receive, reserve, or take, interest (it being understood that “interest” shall be
calculated as the aggregate of all charges which constitute interest under applicable law
that are contracted for, charged, reserved, received, or paid) in excess of the Highest
Lawful Rate. During any period of time in which the interest rates specified herein
exceed the Highest Lawful Rate, interest shall accrue and be payable at such maximum
rate; provided that, if the interest rates decline below the Highest Lawful Rate,
interest shall continue to accrue and be payable at the Highest Lawful Rate (so long as
there remains any unpaid principal with respect to the Advances) until the interest that
has been paid equals the amount of interest that would have been paid if interest had at
all times accrued and been payable at the applicable interest rates specified in this
Agreement.

     (b) If, for any reason, Lenders receive anything of value as interest or anything
deemed interest by applicable law under this Agreement or any of the other Loan Documents
or otherwise that results in Lenders receiving interest in an amount in excess of the
Highest Lawful Rate, the amount of such excess shall be applied to the

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reduction of the principal amount owing hereunder or on account of any other
Indebtedness of Borrower owing to Lenders, and not to the payment of interest. If the
amount of such excess exceeds the unpaid principal balance of all Indebtedness of
Borrower owing to Lenders, such amount shall be refunded to Borrower.

     (c) In determining whether or not the interest paid or payable with respect to any
Indebtedness of Borrower owing to Lenders exceeds the Highest Lawful Rate, Borrower and
Lenders shall, to the maximum extent permitted by applicable law: (A) characterize any
non-principal payment as an expense, fee, or premium rather than as interest; (B) exclude
voluntary prepayments and the effects thereof; (C) amortize, prorate, allocate, and
spread the total amount of interest throughout the actual term of such Indebtedness so
that it does not exceed the maximum amount permitted by applicable law; or (D) allocate
interest between portions of such Indebtedness so that, to the greatest extent possible,
no such portion shall bear interest at a rate greater than the Highest Lawful Rate.

     (d) For purposes of this Section 2.13, the term “applicable law” means the
internal laws of the State of Arizona, provided that, to the extent, contrary to the
express intent of the parties, Arizona law is found to be inapplicable to this Agreement,
then “applicable law” also means that law in effect from time to time and applicable to
this loan transaction which lawfully permits the charging and collection of the highest
permissible, lawful, non-usurious rate of interest on such loan transaction and this
Agreement, and, to the extent controlling, laws of the United States of America.

     2.14 Fees.

     (a) Commitment Fee. Borrower agrees to pay, on or before the Effective Date
and from time to time thereafter, as applicable, to Administrative Agent, for the account
of each Lender, a Commitment fee in the amount separately agreed upon between Borrower
and Administrative Agent.

     (b) Administrative Agent Fee. Borrower agrees to pay to Administrative
Agent for its own account, fees payable in amounts and at the times separately agreed
upon between Borrower and Administrative Agent.

     (c) Unused Fee. Borrower shall pay to Administrative Agent, for the account
of Lenders, a fee (the “Unused Fee”) calculated on a quarterly basis and due and
payable quarterly in arrears (i) within ten (10) days following the last day of each
fiscal quarter of Borrower, (ii) on the Maturity Date, and (iii) on the date the
Commitment has been terminated, with the first payment due ten (10) days after the last
day of the first fiscal quarter after the Effective Date. For each fiscal quarter (or
portion thereof), the Unused Fee will be computed pursuant to the following: (1) 0.50%
per annum on the average daily unused portion of the Aggregate Commitment if the average
daily usage of the Available Commitment is less than 50% of the then Aggregate
Commitment, or (2) 0.375% per annum on the average daily unused portion of the Aggregate
Commitment if the average daily usage of the Available Commitment is greater than or
equal to 50% of the then Aggregate Commitment.

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     (d) Letter of Credit Fee. In connection with each Letter of Credit and as a
condition to the issuance thereof, Borrower shall pay to Administrative Agent (i) for the
account of Lenders, a fee equal to 3.5% per annum of the original stated amount of such
Letter of Credit due on the original date of issuance and each anniversary date thereof,
and (ii) for Issuing Lender’s own account, on or before the date of issuance of such
Letter of Credit, a one-time fee in the amounts separately agreed upon between
Administrative Agent and Borrower. Borrower shall also pay Administrative Agent’s and
the Issuing Lender’s customary fees and expenses for draws, amendments, assignments and
other matters relating to each Letter of Credit.

     (e) Fees Non-Refundable. Borrower acknowledges that all fees payable under
this Section 2.14 are (i) fully earned on the date on which they are payable, and
(ii) nonrefundable when paid (exclusive of double payments and other manifest errors).

     (f) Computation of Fees. All fees hereunder shall be computed on the basis
of a year of three hundred sixty (360) days and paid for the actual number of days
elapsed.

     (g) Closing Costs and Expenses. In addition to the fees set forth in this
Section 2.14, Borrower shall pay, on or prior to the Effective Date, all
outstanding costs and expenses pursuant to Section 2.17.

     2.15 General Provisions as to Payments.

     (a) Payments Generally. Borrower shall make each payment required to be
made by it hereunder (whether of principal, interest or fees) prior to 11:00 a.m.,
Phoenix, Arizona time, on the date when due, in immediately available funds, without
set-off or counterclaim. Any amounts received after such time on any date may, in the
discretion of Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments
shall be made to Administrative Agent at its offices in Phoenix, Arizona, except that
payments pursuant to Sections 2.11 and 9.12 shall be made directly to the
Persons entitled thereto. Administrative Agent shall distribute any such payments
received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be payable for
the period of such extension. All payments hereunder shall be made in U.S. dollars.

     (b) Application of Insufficient Funds. If at any time insufficient funds
are received by and available to Administrative Agent to pay fully all amounts of
principal, interest and fees then due hereunder, such funds shall be applied (i) first,
towards payment of fees, indemnities and expense reimbursements then due hereunder to the
parties entitled thereto; (ii) second, towards payment of interest then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of interest and
fees then due to such parties, (iii) third, towards payment of principal then

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due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal then due to such parties; and (iv) fourth, towards payment of Swap
Obligations then due.

     (c) Allocation of Payments. If any Lender shall, by exercising any right of
set-off or counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Advances resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Advance and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the Advances of
other Lenders to the extent necessary so that the benefit of all such payments shall be
shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Advances; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest, and (ii) the provisions of this paragraph
shall not be construed to apply to any payment made by Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a Lender
as consideration for the assignment of or sale of a participation in any of its Advances
to any assignee or participant. Borrower consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against Borrower rights
of set-off and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of Borrower in the amount of such participation.

     (d) Advance Payments. Unless Administrative Agent shall have received
notice from Borrower prior to the date on which any payment is due to Administrative
Agent for the account of the Lenders hereunder that Borrower will not make such payment,
Administrative Agent may assume that Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the Lenders
the amount due. In such event, if Borrower has not in fact made such payment, then each
of the Lenders severally agrees to repay to Administrative Agent forthwith on demand the
amount so distributed to such Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment
to Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on interbank
compensation.

     2.16 Advances.

     (a) Method for Advances. Subject to the terms and conditions set forth in
the Loan Documents and further subject to the Available Commitment, Advances shall be
made by Administrative Agent on the account of Lenders at the request of the Person or
Persons designated by Borrower from time to time on Administrative Agent’s form of
signature authorization in accordance with Section 2.2; provided, however, that
Administrative Agent shall have acknowledged receipt of any changes in

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the Person or Persons designated by Borrower, and such Person or Persons designated
by Borrower will have executed a new signature authorization form. Subject to
Section 2.1 and the other terms and conditions of this Agreement (including those
hereinafter set forth), such Person or Persons are hereby authorized by Borrower to
request Advances (subject to the limitations in this Agreement) not more frequently than
one (1) time per day, and to direct the disposition of the proceeds of Advances until
written notice of the revocation of such authority is received from Borrower by
Administrative Agent and Administrative Agent has had a reasonable time to act upon such
notice. Administrative Agent has no duty to monitor for Borrower, or to report to any
such Person, the use of proceeds of Advances.

     (b) Use of Advances. Advances may be used only to finance Borrower’s or any
of Operating Borrower’s or Guarantor’s Subsidiary’s costs of acquiring and operating
single tenant or mixed-use properties located in the United States of America, including,
without limitation, the use of Advances by Project Borrowers to pay for, with respect to
Qualified Properties, operating expenses, capital improvements, leasing expenses and
general ownership obligations, and any business activities and investments incidental
thereto. The provisions of this Section 2.16(b) do not require Administrative
Agent or Lenders to monitor the use and application of Advances and does not restrict
Lenders from making Protective Advances or from making Advances as otherwise permitted by
this Agreement (such as pursuant to Section 2.17).

     (c) Limitation on Advances. Notwithstanding anything to the contrary set
forth in this Agreement or in any of the other Loan Documents, in no event shall
Administrative Agent or any Lender be required to make any Advance if, after giving
effect to such Advance, the Outstanding Credit Exposure exceeds the Available Commitment.

     (d) Application of Payments. So long as no Event of Default exists and is
continuing (in which case Administrative Agent may apply payments to principal, interest
and Other Amounts in such order as Administrative Agent determines), Administrative Agent
shall apply payments in the following order: (i) first, to the payment of interest and
fees, (ii) second, to the payment of Other Amounts, and (iii) third, to the payment of
principal.

     2.17 Costs and Expenses.

     (a) Costs and Expenses. Borrower shall pay to Administrative Agent on
demand all reasonable out of pocket costs and expenses of Administrative Agent arising in
connection with the Commitment (including, without limitation, reasonable fees and
expenses for outside attorneys, consultants, inspectors and other professional advisers,
paralegals, document clerks and specialists, and costs and expenses of market studies,
absorption studies, appraisals, appraisal review, title review, title insurance, surveys,
environmental assessments, environmental testing, environmental cleanup, other
inspection, processing, title, filing, and recording costs, expenses, and fees and
Protective Advances): (i) in the negotiation, documentation, execution, delivery and

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modification of the Loan Documents; (ii) in inspecting the Eligible Collateral;
(iii) in enforcement of the Loan Documents and the exercise of the rights and remedies of
Lenders thereunder (in which case such reasonable costs and expenses shall not be limited
to out of pocket costs and expenses); (iv) in defense of the legality, validity, binding
nature and enforceability of the Loan Documents (in which case such reasonable costs and
expenses shall not be limited to out of pocket costs and expenses); and (v) in preparing
for the foregoing, whether or not any legal proceeding is brought or other action is
taken. Such costs, expenses, and fees will include, without limitation, all such
reasonable costs, expenses, and fees incurred in connection with any court proceedings
(whether at the trial or appellate level).

     (b) Failure to Pay. If any costs, expenses and fees or any other costs,
expenses and fees from time to time due under the Loan Documents are not paid within ten
(10) days after written demand by Administrative Agent, Borrower agrees to pay interest
on such costs, expenses, and fees at the Default Interest Rate from the date incurred
until paid in full. In addition, if such costs, expenses and fees are not paid within
such ten (10) day period, Administrative Agent may cause Advances to be made to pay such
costs, expenses and fees, whether or not such Advance has been requested and whether or
not the conditions precedent to an Advance have been satisfied.

     2.18 Mitigation Obligations; Replacement of Lenders.

     (a) Mitigation of Increased Costs. If any Lender requests compensation
under Section 2.7, or if Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.11, then such Lender shall use reasonable efforts to designate a
different Lending Office for funding or booking its Advances hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if,
in the judgment of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 2.7 or 2.11, as the case may
be, in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with
any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under
Section 2.7, or if Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.11, or if any Lender defaults in its obligation to fund Advances
hereunder, then Borrower may, at its sole expense and effort, upon notice to such Lender
and Administrative Agent, require such Lender to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in Section 9.1),
all its interests, rights and obligations under this Agreement to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) Borrower shall have received the prior written consent of
Administrative Agent, (ii) such Lender shall have received payment of an amount equal to
the outstanding principal of its Advances, accrued interest thereon, accrued

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fees and all other amounts payable to it hereunder, from the assignee (to the extent
of such outstanding principal and accrued interest and fees) or Borrower (in the case of
all other amounts); provided however, that in the case of Borrower’s replacement of a
Defaulting Lender for failure to fund Advances hereunder, the assignee or Borrower, as
the case may be, shall holdback from such amounts payable to such Lender and pay directly
to Administrative Agent, any payments due to Administrative Agent or the non-Defaulting
Lenders by Defaulting Lender under this Agreement, and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.7 or payments
required to be made pursuant to Section 2.11, such assignment will result in a
reduction in such compensation or payments. A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by such Lender
or otherwise, the circumstances entitling Borrower to require such assignment and
delegation cease to apply.

     2.19 Releases of Collateral and Project Borrowers. In connection with any removal of
Qualified Properties pursuant to Section 4.3(ii), Administrative Agent shall release such
Qualified Property and the Collateral located thereon or otherwise secured by the Mortgage
Instrument encumbering the applicable Qualified Property (together with the Ownership Interests in
the related Project Borrower) from the Liens under any Loan Document, and the related Project
Borrower, if each of the following conditions precedent is satisfied:

     (a) Generally. With respect to all releases:

     (i) Notification to Administrative Agent. Operating Borrower or the
closing agent handling the sale shall have notified Administrative Agent in writing
of the Collateral to be released.

     (ii) Remargining Payments Required. Borrower shall have made all
payments required to be made pursuant to Section 2.20 after giving effect to
such release.

     (iii) No Default. No Event of Default or Unmatured Event of Default
shall have occurred and be continuing.

     (iv) Endorsements. If the Title Policy covering the Collateral to be
released also covers other Collateral that is not being released, Borrower shall
have provided Administrative Agent with partial release or modification endorsements
to the Title Policy as Administrative Agent may reasonably request in connection
with each release.

     (v) Processing/Release Fees. Borrower shall have paid the
processing/release fees of (1) Administrative Agent in connection with such release
as separately agreed to by Operating Borrower and Administrative Agent, and (2) to
the extent applicable, the trustee under the Mortgage Instruments.

     (vi) Escrow Arrangements. Each release shall be made by Administrative
Agent by delivery of the release documents to Title Company

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upon satisfaction of the conditions precedent to such release pursuant to this
Section 2.19(a).

     (b) Project Borrower. Upon satisfaction of the conditions precedent
contained in this Section 2.19, (a) the Project Borrower that owns the Qualified
Property that is being released from the Collateral shall also be released from any Loan
Document to which such Project Borrower is a party (except as to any obligations that
accrued prior to such release date or that otherwise expressly survive the expiration or
earlier termination of any of the Loan Documents) and shall cease to be a “Borrower,”
“Project Borrower” and a “Loan Party” unless such Project Borrower owns other Qualified
Property included in the remaining Collateral and (b) any Lien in favor of Administrative
Agent on the Ownership Interests in such released Project Borrower shall be released from
the Collateral and any certificates evidencing such Ownership Interests that are held by
Administrative Agent shall be returned to Operating Borrower or Guarantor, as applicable.

     (c) Intentionally Omitted.

     (d) Adjustment to Borrowing Base. Any Collateral released shall no longer
be Eligible Collateral and the Borrowing Base Value shall be immediately and
automatically adjusted to reflect such release. Even though an item of Collateral is not
included as Eligible Collateral, all conditions precedent to release will continue to
apply.

     2.20 Remargining.

     (a) Maximum Outstanding. Anything in the Loan Documents to the contrary
notwithstanding, the total Outstanding Credit Exposure shall not at any time exceed the
Available Commitment.

     (b) No Advances. Borrower shall not be entitled to any Advances if the
effect thereof would be to cause the test in Section 2.20(a) to be violated.

     (c) Payments. If for any reason at any time, the Outstanding Credit
Exposure exceeds the Available Commitment (including, without limitation, by reason of
any adjustments or reductions thereto in accordance with the terms hereof), Borrower
shall be obligated to make a payment equal to the amount of such excess (each payment, a
“Remargining Payment”); provided, however, if such excess is due to the removal
of a Disqualified Property from the Borrowing Base, no Remargining Payment will be
required unless Borrower fails to eliminate such excess within 30 days after Borrower’s
receipt of written notice from Administrative Agent pursuant to Section 2.20(d).

     (d) Due Date. Except as provided in clause (c) above, each payment
pursuant to this Section 2.20 will be due no later than 11:00 a.m. (Phoenix,
Arizona time) on the Business Day after the Business Day upon which Administrative Agent
notifies Borrower (which notice shall be given by electronic mail, facsimile or in
writing) that such Remargining Payment is required.

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     2.21 Letters of Credit.

     (a) Issuance of Letters of Credit. Subject to the terms and conditions of
this Agreement, the Letter of Credit Agreements and the policies, procedures and
requirements of Lenders in effect from time to time for issuance of Letters of Credit,
and so long as no Event of Default has occurred and is continuing, Issuing Lender agrees
to issue, from time to time, Letters of Credit for the account of Borrower or its
Subsidiaries in connection with Borrower’s or a Project Borrower’s acquisition and
operation of Qualified Properties; provided that as to each requested Letter of Credit:

     (i) Borrower or such Project Borrower must have delivered to Issuing Lender a
completed and executed Letter of Credit Agreement.

     (ii) The expiration date for any draws by a beneficiary of any Letter of Credit
will be no later than the earlier of: (A) thirty (30) days before the Maturity
Date, or (B) twelve (12) months after the date of issuance of such Letter of Credit.

     (iii) After giving effect to the issuance of any Letter of Credit, the total
aggregate amount of Letter of Credit Obligations shall not exceed the Letter of
Credit Commitment Amount.

Notwithstanding the foregoing, Borrower shall not be entitled to the issuance of a Letter of Credit
if the effect thereof would be to cause the total Outstanding Credit Exposure to exceed the
Available Commitment.

     (b) Issuance Procedures. To obtain a Letter of Credit, Borrower must
complete and execute a Letter of Credit Agreement and submit it to Issuing Lender. In no
event will Issuing Lender have any obligation to act upon an oral request for a Letter of
Credit or any request that otherwise does not conform to Issuing Lender’s policies and
procedures. Upon receipt of a completed and executed Letter of Credit Agreement and
provided Borrower has met the requirements in this Agreement for the issuance of a Letter
of Credit, Administrative Agent will process the application in accordance with the
policies, procedures and requirements of Issuing Lender then in effect. If the
application meets the requirements of Issuing Lender and is within the policies of
Issuing Lender then in effect, Issuing Lender will issue the requested Letter of Credit
to the beneficiary thereof. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the
part of Issuing Lender or the other Lenders, Issuing Lender hereby grants to each Lender,
and each Lender hereby acquires from Issuing Lender, a participation in such Letter of
Credit equal to such Lender’s respective Commitment Amount Percentage of the aggregate
amount available to be drawn under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to
pay to Administrative Agent, for the account of Issuing Lender, such Lender’s Commitment
Amount Percentage of each Letter of Credit disbursement made by Issuing Lender and not
reimbursed by Borrower on the date due as provided in paragraph (c) of this Section
2.21, or of any reimbursement payment required to be refunded to Borrower for any
reason. Subject to Section

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8.2(a), each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including any
amendment, renewal or extension of any Letter of Credit or the occurrence and continuance
of an Event of Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever.

     (c) Reimbursement for Payment of Drafts Drawn or Drawn and Accepted Under
Letters of Credit. The obligation of Borrower to reimburse Issuing Lender for
payment by Issuing Lender of drafts drawn or drawn and accepted under a Letter of Credit
is as provided in the respective Letter of Credit Agreement and in this Section
2.21(c). Administrative Agent will notify Borrower, in writing, of payment by
Issuing Lender of a draft drawn or drawn and accepted under a Letter of Credit and of the
respective Reimbursement Amount and, so long as all conditions precedent to Advances have
been satisfied, Borrower will do one of the following: (i) request an Advance subject to
the terms and conditions of this Agreement, and Administrative Agent will apply the
proceeds of the Advance to pay the Reimbursement Amount, or (ii) pay to Issuing Lender in
cash, from Borrower’s own funds, the Reimbursement Amount. If Borrower does not
communicate to Administrative Agent its election within two (2) Business Days after
receipt on a Business Day of written notification by Administrative Agent of payment of
the draft or acceptance, Borrower shall be deemed to have elected to pay the
Reimbursement Amount by an Advance, provided that if the terms and conditions in this
Agreement for the making of an Advance are not satisfied, Borrower shall be deemed to
have elected to pay the Reimbursement Amount from its own funds. Each Advance to pay a
Reimbursement Amount will be dated the date that Issuing Lender pays the respective draft
or acceptance and will accrue interest from and after such date at the applicable
Interest Rate. If Borrower is to pay the Reimbursement Amount from its own funds,
Borrower shall also pay to Issuing Lender interest on the Reimbursement Amount from and
including the date Issuing Lender pays the respective draft or acceptance at the Floating
Rate (notwithstanding any contrary rate set forth in the applicable Letter of Credit
Agreement) until the Reimbursement Amount and such interest are paid in full, provided
that if Borrower fails to pay the Reimbursement Amount and accrued interest thereon
within three (3) days after notification by Administrative Agent to Borrower of payment
of the respective draft or acceptance, interest thereafter will accrue at the Default
Interest Rate, and the Reimbursement Amount will, at Administrative Agent’s sole option,
be funded with an Advance, regardless of whether the terms and conditions in this
Agreement for the making of an Advance are satisfied. Such interest shall be computed on
the basis of a 360-day year and accrue on a daily basis for the actual number of days
elapsed.

     (d) Collateralization of Letters of Credit.

     (i) If, after giving effect to any Remargining Payment, the undrawn amount of
Letters of Credit exceed the Available Commitment, upon demand by Administrative
Agent, Borrower will pledge to Administrative Agent cash in the

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amount by which the undrawn amount of Letters of Credit exceed the Available
Commitment as security for any amounts that become payable under the Letters of
Credit and all other Obligations.

     (ii) Upon demand by Administrative Agent after the occurrence and during the
continuance of an Event of Default, Administrative Agent may cause an Advance to be
made in the undrawn amount of all Letters of Credit. Borrower shall have no right
to require Administrative Agent to demand or make such Advances. The proceeds of
any such Advance will be pledged to and held by Administrative Agent as security for
any amounts that become payable under the Letters of Credit and all other
Obligations.

     (iii) In the alternative, if demanded by Administrative Agent after the
occurrence and during the continuance of an Event of Default, Borrower will deposit
with and pledge to Administrative Agent cash in an amount equal to the undrawn
amount of all Letters of Credit, as further security for any amounts that become
payable under the Letters of Credit and all other Obligations.

     (iv) Upon any draws under Letters of Credit, Administrative Agent will apply
those amounts pledged and held pursuant to Sections 2.21(d)(i),
2.21(d)(ii) and 2.21(d)(iii) to the payment of Reimbursement
Amounts, and upon the expiration of the Letters of Credit any remaining amounts will
be applied to the repayment of outstanding Obligations or, if all Obligations have
been paid in full, such proceeds will be released to Borrower.

     (v) Borrower hereby grants to Administrative Agent a security interest in all
pledged amounts referred to in Sections 2.21(d)(i), 2.21(d)(ii) and
2.21(d)(iii) as security for the Obligations. Borrower agrees to execute
and deliver such additional security agreements, control agreements and other
documents as Administrative Agent may reasonably require from time to time with
respect to such security interest and pledged funds.

     (e) Reimbursement Amounts. Borrower’s reimbursement and payment obligations
under Section 2.21(c) are absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim, or defense to payment which
Borrower may have or has had against Lenders (including, without limitation,
Administrative Agent or Issuing Lender) or any beneficiary of the Letter of Credit,
including any defense based upon any of the following: (i) the occurrence of any Event
of Default, (ii) any draft, demand, certificate or other document presented under the
Letter of Credit proven to be forged, fraudulent, invalid or insufficient, (iii) the
failure of any payment by Issuing Lender to conform to the terms of the Letter of Credit
or any non-application or misapplication by the beneficiary of the Letter of Credit of
the proceeds of such payment, (iv) the legality, validity, form, regularity or
enforceability of the Letter of Credit, or (v) the failure of Lenders to make an Advance
or to otherwise comply with its obligations to the Lenders hereunder; provided, however,
that nothing herein shall adversely affect the right of Borrower to commence a proceeding
against Issuing Lender for any wrongful payment under the Letter of

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Credit made by Issuing Lender as the result of acts or omissions constituting gross
negligence or willful misconduct on the part of Issuing Lender.

     (f) Nature of Reimbursement and Other Obligations. Borrower assumes all
risks of the acts, omissions or misuse of any Letter of Credit by the beneficiary
thereof. Issuing Lender will not be responsible (except to the extent of its gross
negligence or willful misconduct) for (i) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any Letter of Credit or any document submitted by any
party in connection with the issuance of any Letter of Credit, even if such document
should in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged, (ii) the form, validity, sufficiency, accuracy, genuineness or
legal effect of any instrument transferring or assigning or purporting to transfer or
assign any Letter of Credit or the rights or benefits thereunder or proceeds thereof in
whole or in part, which may prove to be invalid or ineffective for any reason, (iii)
failure of any beneficiary of any Letter of Credit to comply fully with the conditions
required in order to demand payment under a Letter of Credit, (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages by mail, cable,
telegraph, telex or otherwise, or (v) any loss or delay in the transmission or otherwise
of any document or draft required by or from a beneficiary in order to make a
disbursement under a Letter of Credit or the proceeds thereof.

     (g) Indemnification. Borrower hereby agrees to indemnify and hold harmless
Lenders and Lenders’ directors, officers, agents and employees from and against any and
all claims and damages, losses, liabilities, costs or expenses which Lenders may incur
(or which may be claimed against Lenders by any Person whatsoever) by reason of or in
connection with the issuance, execution and delivery or transfer of or payment or failure
to pay under any Letter of Credit or any actual or proposed use of any Letter of Credit,
including, without limitation, any claims, damages, losses, liabilities, costs or
expenses which Lenders may incur by reason of or on account of Lenders issuing any Letter
of Credit which specifies that the term “Beneficiary” included therein includes any
successor by operation of law of the named Beneficiary, but which Letter of Credit does
not require that any drawing by any such successor Beneficiary be accompanied by a copy
of a legal document, satisfactory to Lenders, evidencing the appointment of such
successor Beneficiary; provided that Borrower shall not be required to indemnify an
Issuing Lender or any other Person for any claims, damages, losses, liabilities, costs or
expenses to the extent, but only to the extent, caused by (a) the willful misconduct or
gross negligence of Issuing Lender in determining whether a request presented under any
Letter of Credit complied with the terms of such Letter of Credit or (b) Issuing Lender’s
failure to pay under any Letter of Credit after the presentation to it of a request
strictly complying with the terms and conditions of such Letter of Credit. Nothing in
this Section 2.21(g) (1) is intended to limit the obligations of Borrower under
any other provision of this Agreement or (2) is intended to limit the rights of Borrower
to make claims as described in the proviso in the last sentence of Section
2.21(e).

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ARTICLE 3

BORROWING BASE

     3.1 Determination of Borrowing Base. Subject to the limitations and adjustments set
forth in this Article 3, the “Borrowing Base” shall equal the sum of the Borrowing
Base Value allocated to each of the Qualified Properties comprising Eligible Collateral. As used
herein, “Borrowing Base Value” means, with respect to each Qualified Property comprising
Eligible Collateral, the lesser of (i) (a) fifty percent (50%) of the Appraised Value of such
Qualified Property as determined by Administrative Agent from time to time in accordance with this
Agreement, or (b) fifty percent (50%) of the Acquisition Costs of such Qualified Property as
determined by Administrative Agent, or (ii) Ten Million and No/100 Dollars ($10,000,000.00);
provided, however, in no event shall the Borrowing Base Value allocated to any one (1) Qualified
Property comprising Eligible Collateral exceed fifteen percent (15%) of the Borrowing Base.

     3.2 Adjustments to Borrowing Base; Additional Limitations on Borrowing Base Values.

     (a) Adjustments to Borrowing Base. Notwithstanding the Borrowing Base
amount determined by Administrative Agent from time to time in accordance with
Section 3.1 above, the Borrowing Base shall automatically be adjusted downward to
comply with all of the following limitations:

     (i) The aggregate NOI of the Qualified Properties comprising Eligible
Collateral shall be in an amount sufficient to equal or exceed the Debt Coverage
Amount;

     (ii) The aggregate Borrowing Base Value of the Qualified Properties comprising
Eligible Collateral leased to a single Tenant (or its Affiliates) shall not, in the
aggregate, exceed thirty percent (30%) of the Borrowing Base;

     (iii) The aggregate Borrowing Base Value of the Qualified Properties comprising
Eligible Collateral occupied by Plus-Credit Tenants pursuant to a Lease shall
comprise no less than eighty percent (80%) of the Borrowing Base;

     (iv) The aggregate Borrowing Base Value of the Dark Properties comprising
Eligible Collateral shall not comprise more than ten percent (10%) of the Borrowing
Base; and

     (v) If a Qualified Property shall at any time convert into a Disqualified
Property, the credit to the Borrowing Base previously allocated to such property
shall immediately be removed.

     (b) Additional Limitations on Borrowing Base Values. If any of the
limitations on the Borrowing Base set forth in this Agreement are exceeded,
Administrative Agent may in its reasonable discretion either remove otherwise Qualified
Properties from Eligible Collateral until such limitations are met, reasonably

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adjust the applicable Borrowing Base Values in order that such limitations are not
exceeded, or require Borrower to make a Remargining Payment.

     3.3 Exclusions from Eligible Collateral. If (i) any Collateral constituting Eligible
Collateral is materially damaged or destroyed or becomes subject to any material condemnation
proceeding, (ii) Borrower violates any provisions of, or breaches any representations and
warranties in, the Loan Documents (including, without limitation, the Environmental Agreement) with
respect to such Collateral that Administrative Agent reasonably determines materially and adversely
affects the value of the Collateral, or (iii) Administrative Agent makes or is entitled to make any
claim under the Title Policy with respect to a matter that Administrative Agent reasonably
determines materially and adversely affects the Collateral, such Collateral may, in Administrative
Agent’s reasonable discretion and upon written notice to Borrower, be declared by Administrative
Agent to no longer be Eligible Collateral. In addition, if any such Collateral does not continue
to meet all the requirements applicable to Eligible Collateral, such Collateral will no longer
constitute Eligible Collateral. Any determination by Administrative Agent as to whether certain
Collateral constitutes Eligible Collateral will be final, conclusive, binding and effective upon
such written notice to Borrower, absent manifest error.

     3.4 Borrowing Base Reports and Collateral Certificates.

     (a) Borrowing Base Report and Collateral Certificate. On or before 15 days
after the end of each calendar quarter, Borrower will prepare and submit to
Administrative Agent a proposed Borrowing Base Report and Collateral Certificate for all
of the Eligible Collateral. With respect to the Eligible Collateral, each Borrowing Base
Report and Collateral Certificate will also take into account the adjustments and
limitations permitted or required by this Agreement. Qualified Properties may be added
as Eligible Collateral only upon receipt and approval by Administrative Agent of a
proposed Borrowing Base Report and Collateral Certificate and satisfaction of all other
provisions of this Agreement.

     (b) Form of Report and Certificate. If requested by Administrative Agent,
the proposed Borrowing Base Report and Collateral Certificate will be in an electronic
format.

     (c) Approval of Borrowing Base Report and Collateral Certificate. Each
proposed Borrowing Base Report and Collateral Certificate shall be subject to approval
and adjustment by Administrative Agent, in its reasonable discretion, based upon (i)
Administrative Agent’s review of such report, and (ii) such other information as
Administrative Agent may reasonably require in order to verify the Borrowing Base,
Eligible Collateral, the Borrowing Base Values, and all other amounts and items relating
thereto. Each determination by Administrative Agent of the Borrowing Base, Eligible
Collateral, the Borrowing Base Values, and the amount of each Advance (and all other
amounts and items entering into such determinations), will be final, conclusive and
binding upon Borrower, absent manifest error. If Administrative Agent rejects a
Borrowing Base Report and Collateral Certificate, Borrower shall make such revisions and
adjustments to the proposed Borrowing Base Report and Collateral Certificate as
Administrative Agent may reasonably request. Administrative Agent

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will use reasonable efforts to review each Borrowing Base Report and Collateral
Certificate and make any adjustments or provide approval within three (3) Business Days
after receipt of each Borrowing Base Report and Collateral Certificate that complies with
the requirements of this Section 3.4, provided that Administrative Agent’s
failure to give such notice or delay in giving such notice shall not limit, waive or
reduce any of the Obligations.

     (d) Frequency of Computation of Borrowing Base. Regardless of whether Borrower
timely delivers a Borrowing Base Report and Collateral Certificate as and when required
pursuant to this Agreement, Administrative Agent may, from time to time, compute the
Borrowing Base based on the above formula in Administrative Agent’s sole but reasonable
business judgment discretion, and such determination by Administrative Agent shall be
conclusive and immediately effective, absent manifest error.

     3.5 General. Anything in this Article 3 or the Loan Documents to the contrary
notwithstanding, Borrower agrees that (a) no limitation on any Advances required or permitted
pursuant to this Agreement will limit or otherwise change Borrower’s obligations and liabilities
under the applicable Loan Documents, (b) Borrower will remain obligated to pay all costs, expenses,
and fees required to be paid by Borrower pursuant to this Agreement and the other Loan Documents,
and (c) Borrower will remain obligated to pay all costs, expenses, and fees now or hereafter
arising in connection with acquisition, development, maintenance, occupancy, operation, and use of
the Collateral.

     3.6 Appraisals.

     (a) Appraisal Requirements. Each Appraisal of a Qualified Property shall be
based upon the “as is” appraised value of such Qualified Property. All Appraisals must
comply with the appraisal policies and procedures of Administrative Agent, regulatory
directives or orders imposed on Administrative Agent, and with all applicable Laws,
including, without limitation, the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, as amended.

     (b) Appraiser Engagement. Each Appraisal must be prepared by an appraiser
selected and engaged by Administrative Agent. Borrower will notify Administrative Agent
in writing that Borrower desires to include a Qualified Property in Eligible Collateral
for which no Appraisal then exists and will provide to Administrative Agent all
information necessary to allow an Appraisal to be ordered by Administrative Agent.
Administrative Agent will engage an appraiser to perform an Appraisal only when it
receives all information reasonably deemed necessary by Administrative Agent and the
appraiser for preparation of such Appraisal. Administrative Agent will not have any
liability to Borrower or any other Person with respect to delays in the Appraisal
process.

     (c) Appraisal Evaluation. Upon receipt of an Appraisal, Administrative
Agent will review the Appraisal in accordance with the appraisal policies and procedures
of Administrative Agent and determine the Appraised Value. Administrative Agent will
notify Borrower of such approval of the Appraised Value.

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     (d) Additional Appraisals. Notwithstanding anything in this Section
3.6 to the contrary, Administrative Agent may order updated Appraisals (i) if such
Appraisals are required by any laws, rules, regulations or generally applicable appraisal
policies and lending procedures of Administrative Agent, (ii) if an Event of Default by
Borrower or any other Loan Party has occurred and is continuing, or (iii) if
Administrative Agent deems such Appraisals to be necessary based upon changes in land
values or other market conditions; provided, however, Administrative Agent may only order
an updated Appraisal pursuant to this clause (iii) one (1) time per calendar year per
Qualified Property. Borrower shall pay the cost and expense of all Appraisals obtained
by Administrative Agent in accordance with this clause (d).

     (e) Appraisal Policy Modifications. Notwithstanding the other provisions of
this Section 3.6, the appraisal process must conform to the general appraisal
policies and procedures of Administrative Agent applicable to collateral subject to loans
held or administered by Administrative Agent and as in effect from time to time
(collectively the “Appraisal Policies”). Borrower acknowledges and agrees that
modification to the Appraisal Policies of Administrative Agent may result in requirements
to modify the Appraisals, Appraised Values and appraisers, which modifications shall be
at Borrower’s sole cost and expense; provided, however, if Borrower paid for the
applicable Appraisal within the previous twelve (12) months, all costs and expenses
incurred in connection with such modification shall be at Administrative Agent’s sole
cost and expense. Any such modification will be effective thirty (30) days after written
notice from Administrative Agent to Borrower of the changes required by reason of a
modification or amendment to the Appraisal Policies.

     (f) Expenses. Subject to Section 3.6(d), Borrower will reimburse
Administrative Agent for all out-of-pocket costs and expenses incurred in the appraisal
process and in establishing and monitoring Appraised Values. All reimbursements by
Borrower to Administrative Agent required by this Section 3.6 will be paid to
Administrative Agent within fifteen (15) days after notice from Administrative Agent to
Borrower.

ARTICLE 4

CONDITIONS PRECEDENT

     4.1 Conditions Precedent to Effectiveness of this Agreement. This Agreement will
become effective only upon satisfaction of the following conditions precedent on or before the
Effective Date, in each case as reasonably determined by Administrative Agent. If the conditions
precedent are not satisfied (or waived pursuant to Section 4.5) on or before such deadline,
Administrative Agent may cancel this Agreement upon written notice to Borrower. The conditions
precedent to be satisfied are as follows:

     (a) Representations and Warranties Accurate. The representations and
warranties by Borrower and the other Loan Parties in this Agreement and in the other Loan
Documents are true and correct in all material respects on and as of the Effective Date,
as though made on and as of such date, except to the extent that such

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representations and warranties specifically refer to an earlier date, in which case
they shall be true and correct, in all material respects, as of such earlier date.

     (b) No Defaults. No Event of Default or Unmatured Event of Default shall
have occurred and be continuing.

     (c) No Material Adverse Change. Administrative Agent shall have reasonably
determined that no Material Adverse Change has occurred with respect to Borrower or
Guarantor, or when taken as a whole, the Project Borrowers, since the most recent
financial statements and reports provided to Administrative Agent.

     (d) Documents. Administrative Agent shall have received the following
agreements, documents and instruments, each duly executed (and acknowledged where
applicable) by the parties thereto and in form and substance satisfactory to
Administrative Agent and its legal counsel:

     (i) Loan Documents. The Loan Documents, including, without limitation,
Certifications of Non-Foreign Status and a Disbursement and Rate Management
Authorization and Instruction Agreement, as required by Administrative Agent;

     (ii) Formation Documents. Borrower shall have provided Administrative
Agent and Administrative Agent shall have reasonably approved (a) the Formation
Documents of Borrower and each other Loan Party, together with such resolutions,
consents and other documents as Administrative Agent may reasonably require to
evidence the due formation, valid existence and authority of Borrower and each other
Loan Party, and (b) Certificates of Good Standing issued by the applicable State
office for Borrower and each other Loan Party;

     (iii) Authorization Documents. Certified copies of the Authorization
Documents of Borrower and each other Loan Party authorizing Borrower and each other
Loan Party to execute, deliver and perform its obligations under this Agreement and
the other Loan Documents to be executed and delivered by Borrower or any Loan Party
in connection herewith, and certifying the names and signatures of the officers of
Borrower and each Loan Party authorized to execute this Agreement and to request
Advances on behalf of Borrower; and

     (iv) Estoppel Certificates; SNDAs. A fully executed tenant estoppel
certificate and subordination, non-disturbance and attornment agreement from each
Tenant with respect to each Qualified Property included in Eligible Collateral, in
form and substance reasonably acceptable to Administrative Agent.

     (e) Payment of Costs, Expenses and Fees. Payment of all costs, expenses and
fees to be paid by Borrower or any Loan Party under the Loan Documents, or otherwise
incurred by Administrative Agent (including internal fees such as closing fees,
environmental review fees and tax service contract fees), on or before the Effective Date
shall have been paid in full.

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     (f) Ownership. The applicable Project Borrower shall be the owner of the
applicable Qualified Property included in Eligible Collateral, subject only to Permitted
Exceptions.

     (g) Qualified Properties Purchase Documents. Borrower shall have provided
copies of the purchase contracts for each of the Qualified Properties included in
Eligible Collateral and the related closing statements for said purchases, certified as
true, correct and complete by Borrower and the applicable Project Borrower.

     (h) Leases. Borrower shall have provided copies of all Leases and Lease
Documents for each Qualified Property included in Eligible Collateral.

     (i) Proforma Budgets. Borrower shall have submitted to Administrative Agent
a budget for each Qualified Property included in Eligible Collateral in form and
substance reasonably acceptable to Administrative Agent.

     (j) PML Report. With respect to each Qualified Property included in
Eligible Collateral, Borrower shall have provided a so-called “PML” report, which shall
address (A) the probable maximum loss that is likely to be sustained by such Qualified
Property in the event of an earthquake or other seismic casualty at or affecting such
Qualified Property, and (B) likelihood and likely intensity of an earthquake or other
seismic casualty at or affecting such Qualified Property.

     (k) Plat; Survey. Borrower shall have delivered to Administrative Agent a
copy of the recorded plat or ALTA survey (meeting the reasonable requirements of
Administrative Agent) of each Qualified Property included in Eligible Collateral,
certified to and in a manner reasonably acceptable to Administrative Agent.

     (l) Zoning. Administrative Agent shall have received reasonably
satisfactory evidence indicating compliance by the Improvements upon each Qualified
Property included in Eligible Collateral with applicable zoning requirements (and all
required variances are obtained).

     (m) Inspections; Tests. Borrower shall have provided copies of all
inspection and test reports with respect to each Qualified Property included in Eligible
Collateral made by or for Borrower or a Project Borrower.

     (n) Environmental Reports. Administrative Agent shall have received an
environmental report with respect to each Qualified Property included in Eligible
Collateral prepared by an environmental consultant reasonably acceptable to
Administrative Agent. Each such environmental report shall be approved by Administrative
Agent in Agent’s sole and absolute discretion.

     (o) Mortgage Instruments; Title Policy. Administrative Agent shall have
received each Mortgage Instrument required to encumber each Qualified Property included
in Eligible Collateral, which Mortgage Instrument shall have been duly executed and
delivered by the applicable Project Borrower, granting Administrative Agent on behalf of
Lenders a first priority lien thereon, subject to Permitted

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Exceptions, and Administrative Agent shall have received a commitment from Title
Company to issue the Title Policy.

     (p) Flood Zone. Administrative Agent shall have received satisfactory
evidence indicating whether each Qualified Property included in Eligible Collateral is
located within a one hundred year flood plain or identified as a special flood hazard
area as defined by the Federal Insurance Administration, and, if so, a flood notification
form signed by Borrower and evidence that flood insurance is in place for the building
and contents, all in form and substance reasonably satisfactory to Administrative Agent.

     (q) Appraisal. Administrative Agent shall have received a current Appraisal
of each Qualified Property included in Eligible Collateral that is acceptable to
Administrative Agent in Administrative Agent’s sole and absolute discretion.

     (r) Searches. Administrative Agent shall have obtained current UCC, tax and
judgment searches made in such places as Administrative Agent may reasonably specify,
covering Borrower and Guarantor and showing no filings relating to, or which could relate
to, the Qualified Properties other than those made hereunder.

     (s) Insurance. Administrative Agent shall have received from Borrower
evidence of the policies of insurance required by this Agreement and the other Loan
Documents.

     (t) Financial Statements. Administrative Agent shall have received the most
recent available financial statements of Operating Borrower and Guarantor.

     (u) IRS Forms. With respect to Borrower and Guarantor, a signed IRS Form
W-8 or W-9, as applicable.

     (v) Opinion Letter. A legal opinion or opinions from counsel for Borrower
and Guarantor, in form and substance reasonably acceptable to Administrative Agent and
Administrative Agent’s counsel.

     (w) Other Items. Borrower shall have provided Administrative Agent with
such other agreements, documents and instruments as Administrative Agent or the Lenders
may reasonably require.

     (x) Other Actions. Borrower has performed such other actions as
Administrative Agent or the Lenders may reasonably require.

     4.2 Qualification of Qualified Properties as Eligible Collateral. Borrower may
include and maintain properties as “Qualified Properties” only if the following conditions
precedent are satisfied, and at any time any of the following conditions fail to be or remain
satisfied, such Qualified Property shall automatically and immediately be deemed a
“Disqualified Property”:

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     (a) The property shall be 100% occupied by a single Tenant which is currently paying
rent, except for Dark Properties that (i) have not constituted a Dark Property for longer
than six (6) consecutive months, and (ii) were not a Dark Property when first qualified
as a Qualified Property comprising Eligible Collateral;

     (b) The property shall be located in the United States of America and owned by a
Project Borrower;

     (c) The property shall be leased to a Tenant rated BBB- or better by S&P, Baa3 or
better by Moody’s, or BBB- or better by Fitch;

     (d) The property is leased by a Tenant at all times pursuant to an executed net
Lease with a minimum remaining Lease term of eight (8) years (exclusive of any extension
options) and free of any co-tenancy clauses;

     (e) Each property shall be encumbered by a Mortgage Instrument executed by the
applicable Project Borrower creating a first priority lien in favor of Administrative
Agent for the benefit of the Lenders, subject only to Permitted Exceptions;

     (f) With respect to each property, Title Company has issued to Administrative Agent
for the benefit of the Lenders, a Title Policy (or an irrevocable commitment to issue a
Title Policy) insuring Administrative Agent’s first priority lien encumbering the
property (together with any requested endorsements thereto), subject only to Permitted
Exceptions;

     (g) The property is covered by policies of insurance required by this Agreement and
the other Loan Documents;

     (h) With respect to each property, Administrative Agent and the Lenders have
conducted and approved any due diligence they deem reasonably necessary, including but
not limited to, appraisals, environmental reviews, property inspections, title report
reviews, plat/survey reviews, physical condition reports, Lease reviews, Formation
Document reviews and any other due diligence reviews contemplated by Section 4.1
above; and

     (i) With respect to the initial approval of a proposed Qualified Property,
Administrative Agent otherwise approves the property as a Qualified Property hereunder in
its sole and absolute discretion.

Any such Qualified Property shall also be deemed a Disqualified Property upon the occurrence of any
of the following:

     (j) The levy, attachment or seizure pursuant to court order of any direct Ownership
Interest in the Project Borrower that owns any Qualified Property, or of any right, title
or interest in and to any Qualified Property or any portion thereof, if any such order is
not vacated and the proceeding in which it was entered is not dismissed within thirty
(30) days of the entry of such order;

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     (k) The filing of any claim of Lien or Encumbrance against any Qualified Property or
any part thereof that is not released, bonded over or insured over with a title insurance
endorsement (obtained at Borrower’s cost and expense) within thirty (30) days after
notice thereof from Administrative Agent to Borrower; or the service on Administrative
Agent, any Lender or any disburser of funds of a notice or demand to withhold funds,
which is not nullified within thirty (30) days after the date of such service; and

     (l) The sale, lease (except as permitted under this Agreement), exchange,
conveyance, transfer, mortgage, assignment, pledge or encumbrance, either voluntarily or
involuntarily, or the agreement to do so, of any right, title or interest in and to any
of the Qualified Properties or any portion thereof.

     4.3 Addition and Removal of Qualified Properties and Project Borrowers. After the
Effective Date of this Agreement, but only upon satisfaction of all the conditions set forth in
Section 4.1 and Section 4.2 with respect to any additional properties and Project
Borrowers, and subject to Administrative Agent’s approval thereof, Borrower shall have the right,
so long as there is no Event of Default or Unmatured Event of Default continuing, to (i) add one or
more properties to the pool of Qualified Properties upon which the Eligible Collateral and
Borrowing Base is determined that conform to the attributes of a Qualified Property set forth in
Section 4.2, so long as (a) the applicable Project Borrower executes and delivers to
Administrative Agent a Mortgage Instrument, Borrower Assumption Agreement and Environmental
Agreement, and (b) Operating Borrower or Guarantor, as applicable, executes and delivers to
Administrative Agent an Assignment of Ownership Interest with respect to the applicable Project
Borrower, and (ii) subject to the satisfaction of the conditions set forth in Section 2.19,
remove one or more properties from the pool of Qualified Properties upon which the Eligible
Collateral and Borrowing Base is determined, and the Mortgage Instruments encumbering said removed
properties shall be released so long as, after giving effect to such release and any Remargining
Payment made in connection therewith, the then Outstanding Credit Exposure is less than the
Available Commitment.

     4.4 Additional Conditions Precedent to All Advances Against Eligible Collateral.
Lenders’ obligations to make Advances is further subject to the satisfaction of the following
additional conditions precedent at the time the Advance is requested and at the time the Advance is
to be made, as reasonably determined by Administrative Agent:

     (a) Defaults. No Event of Default or Unmatured Event of Default shall have
occurred and be continuing on the date of such Advance, both before and after giving
effect thereto.

     (b) Other Conditions Precedent. Borrower will have satisfied all conditions
precedent to Advances in this Agreement and the other Loan Documents.

     (c) Mortgage Instrument. Such Eligible Collateral shall be encumbered by a
first lien Mortgage Instrument in favor of Administrative Agent for the benefit of
Lenders, subject only to Permitted Exceptions.

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     (d) Payment of Costs, Expenses, and Fees. All costs, expenses and fees due
to be paid by Borrower on or before the date of the Advance under the Loan Documents
shall have been paid in full.

     (e) Draw Request. Borrower will have delivered to Administrative Agent a
Draw Request for such Advance.

     (f) Limit on Total Outstanding. After giving effect to the requested
Advance, the Outstanding Credit Exposure will not violate the tests in Section
2.20 and no Remargining Payment will be required.

     4.5 Right to Waive. Borrower authorizes Administrative Agent and Administrative Agent
reserves the right to verify any documents and information submitted to it in connection with this
Agreement. Administrative Agent may elect to waive any of the conditions precedent and
requirements in this Article 4. Any such waiver will be limited to the conditions
precedent and requirements in the applicable Sections of this Article 4. Delay or failure
by Administrative Agent to insist on satisfaction of any condition precedent will not be a waiver
of such condition precedent or any other condition precedent. The making of an Advance by
Administrative Agent or any of the Lenders will not be deemed a waiver by Lenders of the occurrence
of an Event of Default or Unmatured Event of Default.

ARTICLE 5

BORROWER REPRESENTATIONS AND WARRANTIES

     5.1 Representations and Warranties. Borrower represents and warrants to
Administrative Agent and the Lenders, as of the Effective Date and as of the various other dates
specified in this Agreement and the other Loan Documents on which such representations and
warranties are to be accurate, except to the extent such representations and warranties
specifically refer to and earlier date, in which case they shall be true and correct, in all
material respects, as of such earlier date, the following:

     (a) Formation and Authorization. Operating Borrower is a limited
partnership validly organized and existing in good standing under the laws of the State
of Delaware, and is authorized to conduct business in the State of Arizona. Borrower has
requisite power and authority to execute, deliver and perform the Loan Documents. The
execution, delivery and performance by Borrower of the Loan Documents has been duly
authorized by all requisite action by or on behalf of Borrower and will not conflict with
or result in a violation of or a default under Borrower’s Formation Documents. Each
other Loan Party is a corporation, partnership or limited liability company validly
organized and existing in good standing under the laws of the State of such Loan Party’s
formation, and each Project Borrower is authorized to conduct business in the State in
which a Qualified Property owned by such Project Borrower is located. Each Loan Party
has the requisite power and authority to execute, deliver and perform the Loan Documents
to which such Loan Party is a party. The execution, delivery and performance by each
Loan Party of the Loan Documents to which it is a party has been duly authorized by all
requisite action by or on behalf of such Loan

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Party and will not conflict with or result in a violation of or a default under any
such Loan Party’s Formation Documents.

     (b) No Approvals, etc. No approval, authorization, bond, consent,
certificate, franchise, license, permit, registration, qualification or other action or
grant by or filing with any Governmental Authority or other Person is required in
connection with the execution, delivery or performance by Borrower or any other Loan
Party of any Loan Document, except for any such action, grant or filing which has already
been taken.

     (c) No Conflicts. The execution, delivery and performance by Borrower and,
as applicable, each other Loan Party, of the Loan Documents will not conflict with or
result in a violation of or a default under (i) any applicable law, ordinance, regulation
or rule (federal, state or local) in any material respect, (ii) any judgment, order or
decree of any arbitrator, other private adjudicator, or Governmental Authority to which
Borrower or such other Loan Party is a party or by which Borrower or such other Loan
Party is bound, (iii) any of the Approvals and Permits, or (iv) any agreement, document
or instrument (in any material respect) to which Borrower or such other Loan Party is a
party or by which Borrower or such other Loan Party or any of the assets of Borrower or
such other Loan Party is bound.

     (d) Execution and Delivery and Binding Nature of Loan Documents. The Loan
Documents are legal, valid and binding obligations of Borrower, enforceable in accordance
with their terms against Borrower, except as such enforceability may be limited by
bankruptcy, insolvency, moratorium, reorganization or similar laws and by equitable
principles of general application. With respect to each other Loan Party, the Loan
Documents to which any such Loan Party is a party are legal, valid and binding
obligations of such Loan Party, enforceable in accordance with their terms against such
Loan Party, except as such enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization or similar laws and by equitable principles of general
application.

     (e) Accurate Information. All information in any loan application,
financial statement (other than financial projections), certificate or other document,
and all other information delivered by or on behalf of Borrower or any other Loan Party
to Administrative Agent or any Lender in connection with the Commitment is true, correct
and complete in all material respects, and there are no omissions from any such
information that results in any such information being materially incomplete, incorrect
or misleading. Borrower does not have any knowledge of any material change in any such
information. All financial statements (other than financial projections) heretofore
delivered to Administrative Agent or any Lender by Borrower or any Loan Party were
prepared in accordance with the requirements in this Agreement and accurately present the
financial conditions and results of operations as of the dates thereof and for the
periods covered thereby in all material respects. All financial projections have been
and will be prepared in accordance with the requirements of this Agreement, and will be
based on the applicable Person’s best good faith estimates, compiled and prepared

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with due diligence, of the matters set forth therein. Since June 30, 2009 and as of
the Effective Date, no Material Adverse Change has occurred.

     (f) Purpose of Advances. The purpose and permitted use of the each Advance
is as set forth in Section 2.16(b). The purpose of Advances is a business
purpose and not a personal, family, or household purpose.

     (g) Legal Proceedings, Hearings, Inquiries and Investigations. Except as
disclosed to Administrative Agent in writing prior to the Effective Date:

     (i) No legal proceeding, individually or in the aggregate with related
proceedings, involving a sum of $50,000.00 or more, is pending or, to Borrower’s
knowledge, threatened, before any arbitrator, other private adjudicator or
Governmental Authority to which Borrower or any Loan Party is a party or by which
Borrower or any Loan Party, or any assets of Borrower or any Loan Party, may be
bound or affected that if resolved adversely to Borrower or the applicable Loan
Party could reasonably be expected to result in a Material Adverse Change.

     (ii) No hearing, inquiry or investigation relating to Borrower or any Loan
Party, or any assets of Borrower or any Loan Party, is pending or, to Borrower’s or
any Loan Party’s knowledge, threatened, by any Governmental Authority that could
reasonably be expected to result in a Material Adverse Change.

     (h) No Defaults. No Event of Default or Unmatured Event of Default has
occurred and is continuing.

     (i) Approvals and Permits; Assets and Property. Borrower and each Loan
Party has obtained and there are in full force and effect all Approvals and Permits
presently necessary for the conduct of the business of Borrower and each Loan Party, and
Borrower and each Loan Party owns, leases or licenses all assets necessary for conduct of
the business and operations of Borrower and each Loan Party. The assets of Borrower and
each Project Borrower are not subject to any Liens and Encumbrances, other than (i) the
Liens and Encumbrances created pursuant to this Agreement or any other Loan Document,
(ii) the Permitted Exceptions with respect to property encumbered by the Mortgage
Instruments, and (iii) with respect to other assets of Borrower or any other Loan Party
that are not encumbered by the Mortgage Instruments, Liens and Encumbrances that have
been taken into account in the preparation of financial statements and reports of
Borrower and such other Loan Parties delivered to Administrative Agent or any Lender or
otherwise securing Indebtedness permitted under Section 7.10.

     (j) Impositions. Except as otherwise permitted pursuant to Section
6.6, Borrower has filed or caused to be filed all tax returns (federal, state, and
local) required to be filed by Borrower and has paid all Impositions and other amounts
shown thereon to be due (including, without limitation, any interest or penalties).

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          (k) ERISA. To Borrower’s best knowledge and belief:

     (i) None of the execution and delivery of this Agreement or the other Loan
Documents by Borrower, the performance by Borrower of the Obligations or the
consummation by Borrower of any of the other transactions contemplated by this
Agreement constitutes or will constitute a “prohibited transaction” within the
meaning of Section 4975 of the Code or Section 406 of ERISA.

     (ii) Each “employee benefit plan” (within the meaning of Section 3(3) of ERISA)
(a “Plan”) with respect to which Borrower or any Person which is under
“common control” with Borrower (within the meaning of Section 414(b) or (c) of the
Code or Section 4001(b) of ERISA) (an “ERISA Affiliate”), if any, is in
compliance in all material respects with applicable provisions of ERISA, the Code
and applicable foreign law. Borrower and each ERISA Affiliate have made all
contributions to the Plans required to be made by any of them subject to Section 412
of the Code.

     (iii) Except for liabilities to make contributions and to pay Pension Benefit
Guaranty Corporation (or any successor thereto) (“PBGC”) premiums and
administrative costs, neither Borrower nor any ERISA Affiliate of Borrower has
incurred any material liability to or on account of any Plan under applicable
provisions of ERISA, the Code or applicable foreign law, and no condition exists
which presents a material risk to Borrower or any ERISA Affiliate of Borrower of
incurring any such liability. No domestic Plan has an “accumulated funding
deficiency” (within the meaning of Section 412 of the Code), whether or not waived,
and no foreign Plan is in violation of any funding requirements imposed by
applicable foreign law. None of Borrower, any ERISA Affiliate of Borrower, the PBGC
or any other Person has instituted any proceedings or taken any other action to
terminate any Plan.

     (iv) The actuarial present value of all accrued benefit liabilities under each
domestic Plan and under each foreign Plan (based on the assumptions used in the
funding of such Plan, which assumptions are reasonable, and determined as of the
last day of the most recent plan year of such domestic Plan for which an annual
report has been filed with the Internal Revenue Service or of such foreign Plan for
which year-end actuarial information is available) did not exceed the current fair
market value of the assets of such Plan as of such last day.

     (v) None of the Plans is a “Multiemployer Plan” (as defined in ERISA), and
neither Borrower nor any ERISA Affiliate of Borrower has contributed or been
obligated to contribute to any Multiemployer Plan at any time within the preceding
six (6) years.

     (vi) Determined in accordance with United States Department of Labor
Regulations §2510.3-101, the assets of Borrower and each shareholder in Borrower are
not “plan assets” of any employee benefit plan subject to the fiduciary
responsibility requirements and prohibited transaction rules of ERISA.

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     (l) Compliance With Law. None of Borrower, any Loan Party, any Qualified
Property or any other Collateral is in violation of any law, ordinance, regulation or
rule (federal, state, or local) in any material respect.

     (m) Representations and Warranties Relating to Collateral.

     (i) Ownership. Except as permitted pursuant to Section 6.3(b),
the Loan Party that is the legal and equitable owner of Collateral is and will at
all times be the legal and equitable owner of such Collateral, free and clear of all
Liens and Encumbrances, except for the Mortgage Instruments and the Permitted
Exceptions.

     (ii) Authority to Encumber. The Loan Party that is the legal and
equitable owner of Collateral has, and will continue to have, the full right and
authority to encumber such Collateral, including each of the Qualified Properties
included or to be included in Eligible Collateral.

     (iii) Validity of the Lien and Encumbrance Created by the Mortgage
Instruments. The Lien and Encumbrance created by the Mortgage Instruments is
(A) legal, valid, binding and enforceable, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization or similar laws and by
equitable principles of general application, and (B) is first priority, except for
Permitted Exceptions (other than Permitted Exceptions that are required to be
subordinated to the Mortgage Instruments).

     (iv) Legal Parcel; Separate Tax Parcel. Each Qualified Property is
taxed separately and does not include any other property, and for all purposes each
Qualified Property may be mortgaged, conveyed and otherwise dealt with as a separate
legal parcel.

     (v) Leases and Rents. The applicable Loan Party has good and
marketable title to the Leases and the rents payable thereunder, free and clear of
all claims and Liens and Encumbrances other than the Permitted Exceptions. The
Leases and the other Lease Documents are valid and unmodified (other than those
modifications provided to, and if executed after the Effective Date and materially
increase the obligations of such Loan Party or materially decrease the obligations
of Tenant thereunder, consented to by Administrative Agent) and are in full force
and effect, and Borrower or the applicable Loan Party that is a party to any such
Lease or other Lease Document is not in default of any of the material terms or
provisions of the Leases or any such other Lease Document. The rents now due or to
become due for any periods subsequent to the Effective Date have not been collected
and payment thereof has not been anticipated for a period of more than one (1) month
in advance, waived or released, discounted, set off or otherwise discharged or
compromised. Neither Borrower nor any other Loan Party has received any funds or
deposits from any Tenant for which credit has not already been made on account of
accrued rents other than security deposits required by the Leases.

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     (n) Use of Proceeds; Margin Stock. The proceeds of the Advances will be
used by Borrower solely for the purposes specified in this Agreement. None of such
proceeds will be used for the purpose of purchasing or carrying any “margin stock” as
defined in Regulation U or G of the Board of Governors of the Federal Reserve System (12
C.F.R. Part 221 and 207), or for the purpose of reducing or retiring any indebtedness
which was originally incurred to purchase or carry margin stock or for any other purpose
which might constitute this transaction a “purpose credit” within the meaning of such
Regulation U or G. Borrower is not engaged in the business of extending credit for the
purpose of purchasing or carrying margin stock. Neither Borrower nor any Person acting
on behalf of Borrower has taken or will take any action which might cause this Agreement
or any other Loan Document to violate Regulation U or G or any other regulations of the
Board of Governors of the Federal Reserve System or to violate Section 7 of the
Securities Exchange Act of 1934, or any rule or regulation thereunder, in each case as
now in effect or as the same may hereafter be in effect. Borrower and its subsidiaries
own no “margin stock”.

     (o) Governmental Regulation. Borrower is not required to be registered as
an “investment company” under the Investment Company Act of 1940, as amended.

     (p) Benefit. Each Loan Party: (i) operates in conjunction with the other
separate but affiliated Loan Parties with respect to their respective operations; and, in
this regard, each Loan Party is benefited by operating with the other Loan Parties
because of greater operating efficiencies, economies of scale, coordination, and
centralization of market presence, and common business functions, including, but not
limited to, accounting services for consolidated financial statements; (ii) expressly
acknowledges and agrees with all of the other Loan Parties, and expressly represents and
confirms to Administrative Agent and to Lenders, that each Loan Party receives a
reasonably equivalent value in exchange for permitting its funds to be applied to the
Obligations under this Agreement; (iii) agrees that each and all of the Loan Parties
sought financing collectively because they cannot obtain financing in the amount of the
Aggregate Commitment or otherwise under terms as advantageous as those of this Agreement
if each Loan Party tried instead to obtain stand-alone financing individually and each
Loan Party acknowledges that, while the Loan Parties are separate and distinct corporate
entities, they have asked Administrative Agent and Lenders to recognize their common
business purpose and collective assets as part of the underwriting considerations, so
that they can qualify collectively for the greatest available amount of financing and are
each benefited by the greater borrowing capacity; (iv) expressly agrees with each other,
and expressly represents and confirms to Administrative Agent and to Lenders, that each
and all of the Loan Parties have received the benefit of such greater borrowing capacity
resulting from their common business enterprise; (v) agrees in requesting the Commitment,
and for purposes of the Commitment, the Loan Parties have presented to Administrative
Agent and Lenders, and have asked Administrative Agent and Lenders to rely, in part, on
consolidated financial statements; (vi) acknowledges and agrees that the proceeds of the
Advances and the Letters of Credit are available to each and all of the Loan Parties, and
that the agreed distribution of the proceeds will be decided by the Loan Parties
collectively and among themselves; (vii) agrees that the availability of the proceeds of
Advances and

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the agreed use thereof (subject to the requirements of this Agreement) decided by
the Loan Parties among themselves are essential to and will materially benefit each Loan
Party on an individual and collective basis; (xii) agrees that the Loan Parties have
expressly agreed among themselves to compile and maintain a single, collective Borrowing
Base to be certified to Administrative Agent and Lenders for purposes of requests by
Borrower for Advances and Letters of Credit. Each Project Borrower is a wholly-owned
Subsidiary of Operating Borrower (either directly and/or indirectly through a
wholly-owned Subsidiary of Operating Borrower) or Guarantor.

     (q) Solvency. Each Loan Party (i) confirms that prior to, as of, during and
following the funding of the Commitment, each Loan Party was not, and continues not to
be, “insolvent” as that term is defined in Section 101(32) of the United States
Bankruptcy Code, (ii) confirms that, prior to, as of, during and following the funding of
the Commitment, each Loan Party has been able and will continue to be able to pay its
debts as they become due, and further acknowledges that its ability to do so is enhanced
by access to proceeds of the Advances, (iii) confirms that, prior to, as of, during and
following the funding of the Commitment, each Loan Party retained, and continues to
retain, sufficient capital to operate its business, and (iv) confirms that, based on its
assets and its anticipated business performance, each Loan Party believes that it will be
able to pay its debts as they mature.

     5.2 Representations and Warranties Upon Requests for Advances. Each request for an
Advance will be a representation and warranty by Borrower that all of the representations and
warranties in this Article 5 and in the other Loan Documents are true, correct and complete
as of the date of the Advance request and as of the date that the Advance is made, except to the
extent such representations and warranties specifically refer to and earlier date, in which case
they shall be true and correct, in all material respects, as of such earlier date.

     5.3 Representations and Warranties Upon Delivery of Financial Statements, Documents, and
Other Information. Each delivery by Borrower of financial statements, other documents or
information after the Effective Date hereof (including, without limitation, documents and
information delivered in obtaining an Advance) will be a representation and warranty to
Administrative Agent and the Lenders by Borrower that such financial statements, other documents or
information (other than financial projections) are true, correct and complete in all material
respects, that there are no material omissions therefrom that result in such financial statements,
other documents or information being materially incomplete, incorrect or misleading as of the date
thereof, and that such financial statements accurately present the financial condition and results
of operations of the subject thereof as at the dates thereof and for the periods covered thereby.
Each delivery by Borrower of financial projections is a representation and warranty to
Administrative Agent and the Lenders by Borrower that such financial projections have been prepared
in accordance with the requirements in this Agreement, and are based on Borrower’s best good faith
estimates, compiled and prepared with due diligence, of the matters set forth therein.

     5.4 Nature of Representations and Warranties. All representations and warranties made
in this Agreement or in any other Loan Document or in any certificate or other document delivered
to Administrative Agent or any Lender pursuant to or in connection with this

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Agreement shall be deemed to have been relied upon by Administrative Agent and the Lenders
notwithstanding any investigation heretofore or hereafter made by Administrative Agent or the
Lenders, or on their behalf.

ARTICLE 6

AFFIRMATIVE COVENANTS

     The following covenants shall apply until the Obligations of Borrower and any other Loan Party
are paid and performed in full and Lenders have no further obligation to make Advances, issue
Letters of Credit or otherwise extend credit to Borrower:

     6.1 Corporate Existence. Borrower agrees that Borrower shall continue to be a limited
partnership or limited liability company (as applicable) validly existing, and in good standing
under the laws of the State of Delaware. Borrower shall cause each other Loan Party to continue to
be an entity validly existing and in good standing under the laws of the State of its formation.

     6.2 Books and Records; Access. Borrower agrees that Operating Borrower will maintain
a complete and accurate set of books and records of its assets, business, financial condition,
operations, prospects and results of operation in accordance with GAAP. Borrower also agrees to
maintain complete and accurate records regarding the acquisition, development and operation of the
Qualified Properties, including, without limitation, all notices, records, documents and
instruments related to the Leases. Borrower also agrees that books and records required to be
maintained by Borrower pursuant to this Section 6.2 shall be maintained for a period of
time following payment in full of Borrower’s Obligations at least equal to the statute of
limitations period within which Lenders would be entitled to commence an action with respect to the
Obligations. During normal business hours upon reasonable advance notice and subject to the rights
of the Tenants under the Leases, Borrower will give representatives of Administrative Agent access
to the Collateral and Borrower’s books, records and documents relating to the Collateral and will
permit such representatives to inspect such Collateral and to audit, copy, examine and make
excerpts from such books, records and documents; provided, however, such visits shall (a) not occur
when any independent auditors are conducting an audit of any member of the Consolidated Group
(provided, Administrative Agent’s representatives shall be entitled to inspect a Collateral site so
long as such auditors are not conducting any such audit at such Collateral site), and (b) subject
to the rights of the Tenants, not materially disrupt the operations of any Tenant. Borrower shall
not be responsible for any costs or expenses for more than one visit in any calendar year unless
such visit is performed during the continuance of an Event of Default. Upon reasonable request by
Administrative Agent, Borrower will also provide Administrative Agent with copies of the reports,
documents, agreements and other instruments described in this Section 6.2.

     6.3 Covenants Relating to Collateral. Borrower agrees:

     (a) Defense of Title. Borrower will defend and cause each applicable
Project Borrower to defend the Collateral, the title and interest therein of Borrower and
the applicable Project Borrower represented and warranted in the Mortgage Instruments and
this Agreement, and the legality, validity, binding nature and

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enforceability of the Lien and Encumbrance contained in the Mortgage Instruments and
the first priority of the Mortgage Instruments against all matters (except for Permitted
Exceptions), including, without limitation, (i) any attachment, levy or other seizure by
legal process or otherwise of any or all such Collateral, (ii) except for Permitted
Exceptions, any Lien or Encumbrance or claim thereof on any or all such Collateral, (iii)
any attempt to foreclose, conduct a trustee’s sale, or otherwise realize upon any or all
Collateral under any Lien or Encumbrance, regardless of whether a Permitted Exception and
regardless of whether junior or senior to the applicable Mortgage Instrument, and (iv)
any claim questioning the legality, validity, binding nature, enforceability, or priority
of any Mortgage Instrument. Borrower will notify Administrative Agent promptly in
writing of any of the foregoing and will provide such information with respect thereto as
Administrative Agent may from time to time reasonably request.

     (b) No Encumbrances. Borrower will not, and shall not permit the Project
Borrowers to, sell, assign, transfer or otherwise dispose of, or grant any option with
respect to, or pledge or otherwise encumber, any of the Collateral or any interest
therein or any fixtures thereof or proceeds thereof, except for (i) the Permitted
Exceptions, and (ii) sales and transfers in connection with releases permitted pursuant
to Section 2.19 and Section 4.3, and (iii) easements required to be
granted to any Governmental Authority or necessary for any access, drainage, utility or
similar service in connection with the operation of the Collateral.

     (c) Utilities. All telephone service, electric power, storm sewer (if
required), sanitary sewer (if required) and water facilities for the Qualified Properties
shall be maintained at all times, and such utilities will be adequate to serve the
Qualified Properties. No condition will exist to affect the applicable Project
Borrower’s right to connect into and have adequate use of such utilities, except for the
payment of normal connection charges or tap charges and except for the payment of
subsequent charges for such services to the utility supplier.

     (d) No Residential Use. No Qualified Property shall ever be occupied as a
residence.

     (e) Flood Insurance. Unless flood insurance acceptable to Administrative
Agent will first have been obtained, no Qualified Property will be located in an area
that has been identified by the Secretary of Housing and Urban Development as an area
having special flood hazards and in which flood insurance has been made available under
the National Flood Insurance Act of 1968.

     (f) Compliance with Permitted Exceptions. All restrictive covenants,
development agreements, easements and other agreements with Governmental Authorities and
other Persons that are necessary or desirable for the use and occupancy of the Qualified
Properties will be kept and maintained in full force and effect. Borrower will not, and
will not permit any applicable Project Borrower to, default in any material respect under
any such covenants, development agreements, easements and other agreements, and rights
thereunder will be diligently enforced.

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     (g) Improvement Districts. Without obtaining the prior written consent of
Administrative Agent, Borrower will not consent to, or vote in favor of, the inclusion of
all or any part of the Collateral (other than Collateral that is in improvement districts
as of the Effective Date or upon addition as Collateral pursuant to Section 4.3)
in any community facilities district or other improvement district. Borrower will give
prompt notice to Administrative Agent of any notification or advice that Borrower may
receive from any municipality or other third party of any action, contract or other
proceeding the purpose of which is to include all or any part of the Collateral in a
community facilities district or other improvement district. Upon prior written notice
to Borrower, Administrative Agent shall have the right to file a written objection to the
inclusion of all or any part of the Collateral (other than Collateral that is in
improvement districts as of the Effective Date or upon addition as Collateral pursuant to
Section 4.3) in a community facilities district or other improvement district,
either in its own name or in the name of Borrower, and to appear at, and participate in,
any hearing with respect to the formation of any such district.

     6.4 Information and Statements. Operating Borrower will furnish the following
information and statements to Administrative Agent:

     (a) Annual Statements — Operating Borrower. Within ninety (90) days after
the close of each Fiscal Year of Operating Borrower, unqualified, unaudited
company-prepared annual financial statements of Operating Borrower, certified and signed
by the chief financial officer of Guarantor, as the general partner of Operating
Borrower, prepared in accordance with GAAP in each case on a consolidated basis,
including balance sheets as of the end of such Fiscal Year and statements of income and
retained earnings, and setting forth in comparative form the balance sheet, income
statement and retained earnings for the preceding Fiscal Year.

     (b) Annual Statements — Guarantor. Within ninety (90) days after the close
of each Fiscal Year of Guarantor, unqualified, audited annual financial statements of the
Consolidated Group, certified and signed by the chief financial officer of Guarantor, and
audited by nationally recognized independent certified public accountants that are
reasonably acceptable to Administrative Agent, prepared in accordance with GAAP in each
case on a consolidated basis, including balance sheets as of the end of such Fiscal Year
and statements of income and retained earnings and a statement of cash flows, and setting
forth in comparative form the balance sheet, income statement, retained earnings and cash
flow figures for the preceding Fiscal Year. Operating Borrower and Guarantor shall be
deemed to have complied with the foregoing requirements, if Guarantor provides to
Administrative Agent Guarantor’s Form 10-K that is filed with the SEC within the time
frame set forth above.

     (c) Quarterly Financial Statements — Operating Borrower. Within forty-five
(45) days after the close of each of the first three (3) quarterly periods of each Fiscal
Year, company-prepared financial statements for Operating Borrower on a consolidated
basis, including balance sheets as of the end of such period, statements of income and,
with respect to the consolidated financial statements only, retained earnings, in each
case for the portion of the Fiscal Year ending with such fiscal period,

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all certified and signed by the chief financial officer of Guarantor, as the general
partner of Operating Borrower and prepared in accordance with GAAP. All consolidated
balance sheets shall set forth in comparative form figures for the preceding year end and
the corresponding period in the preceding Fiscal Year. All such income statements shall
reflect year-to-date figures.

     (d) Quarterly Financial Statements — Guarantor. Within forty-five (45) days
after the close of each of the first three (3) quarterly periods of each Fiscal Year of
Guarantor, company-prepared financial statements for the Consolidated Group, on a
consolidated basis, including balance sheets as of the end of such period, statements of
income and, with respect to the consolidated financial statements only, retained earnings
and a statement of cash flows, in each case for the portion of the Fiscal Year ending
with such fiscal period, all certified and signed by the chief financial officer of
Guarantor and prepared in accordance with GAAP. All consolidated balance sheets shall
set forth in comparative form figures for the preceding year end and the corresponding
period in the preceding Fiscal Year. All such income statements shall reflect
year-to-date figures. Operating Borrower and Guarantor shall be deemed to have complied
with the foregoing requirements, if Guarantor provides to Administrative Agent
Guarantor’s Form 10-Q that is filed with the SEC within the time frame set forth above.

     (e) Borrowing Base Report and Collateral Certificates. As and when required
pursuant to Section 3.4, the Borrowing Base Report and Collateral Certificates.

     (f) Environmental Incident Reports. As soon as possible and in any event
within ten (10) days after receipt by Borrower or any other Loan Party, a copy of any
written notice or claim to the effect that Borrower or any other Loan Party is or may be
liable to any Person as a result of the release of any toxic or hazardous waste or
substance into the environment.

     (g) Compliance Information. All annual financial statements pursuant to
Section 6.4(a) and (b) and all quarterly financial statements pursuant to
Section 6.4(c)and (d) will also be accompanied by a Compliance
Certificate signed by the chief financial officer of the reporting entity or its general
partner (as applicable) and setting forth, in reasonable detail, calculations
demonstrating compliance with the financial covenants in Section 6.16.
Notwithstanding anything in this Agreement to the contrary, Operating Borrower and
Guarantor will be required to timely deliver such financial information as may be
necessary to promptly and accurately calculate any financial ratio or covenant required
under this Agreement even if such information is not specifically enumerated herein. Any
review of any financial statements provided by Operating Borrower or Guarantor used to
test any financial ratio or covenant will not waive Administrative Agent’s rights to
require further review or audit of such information or any rights if such further review
or audit indicates financial information contrary to the financial statements provided by
Operating Borrower and/or Guarantor.

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     (h) Other Items and Information. Operating Borrower shall also provide such
other information concerning Borrower, Guarantor, the Qualified Properties, and the
assets, business, financial condition, operations, prospects and results of operations of
Operating Borrower as Administrative Agent reasonably requests from time to time. Such
other items shall include, without limitation, Operating Borrower’s certification that
all Leases with respect to Qualified Properties included in Eligible Collateral satisfy
the requirements of this Agreement.

     (i) Other Reports. As and when reasonably requested by Administrative
Agent, such other periodic reports, documents and schedules as may be reasonably
requested by Administrative Agent from time to time.

     6.5 Law; Judgments; Material Agreements; Approvals and Permits. Borrower agrees that
Borrower will comply, in all material respects, with all laws, ordinances, regulations, and rules
(federal, state, and local) and all judgments, orders, and decrees of any arbitrator, other private
adjudicator, or Governmental Authority relating to Borrower, the Collateral or the other assets,
business, or operations of Borrower. Borrower also agrees to comply in all material respects with
all material agreements, documents, and instruments to which Borrower is a party or by which
Borrower, or the Collateral, or any of the other assets of Borrower are bound or affected.
Borrower also agrees to comply, in all material respects, with all Requirements and all conditions
and requirements of all Approvals and Permits. Borrower, at its expense, will obtain and maintain
in effect from time to time all Approvals and Permits required for the business activities and
operations then being conducted by Borrower and as may be required to enable it to comply with its
obligations hereunder and under the other Loan Documents.

     6.6 Impositions and Other Indebtedness. Except for amounts being contested as
provided in paragraph (b)(i) through (iii) of the definition of Permitted Exceptions,
Borrower will pay and discharge, or cause to be paid and discharged (a) before delinquency all
Impositions affecting it or the Collateral, (b) when due all lawful claims (including, without
limitation, claims for labor, materials and supplies), which, if unpaid, might become a Lien or
Encumbrance upon any of the Collateral, and (c) all its other Indebtedness, when due.

     6.7 Assets and Property. Borrower will maintain, keep, and preserve, or cause to be
maintained, kept and preserved, the Collateral in good working order and condition, ordinary wear
and tear excepted.

     6.8 Casualty and Liability Insurance. Borrower, at its expense or the expense of the
applicable Tenant, shall maintain and deliver, or cause to be maintained and delivered, to
Administrative Agent the policies of insurance set forth on Exhibit I attached hereto with
respect to the Collateral and the Project Borrowers. All insurance policies shall (i) be issued by
an insurance company licensed or authorized to do business in the state where the property is
located having a rating of “A-” VIII or better by A.M. Best Co., in Best’s Rating Guide, (ii) name
“JPMorgan Chase Bank, N.A., as administrative agent” as additional insureds on all liability
insurance and as mortgagee and loss payee on all ISO Special Form or All-Risk Property insurance,
(iii) be endorsed to show that Borrower’s insurance shall be primary and all insurance carried by
Administrative Agent and the Lenders is strictly excess and secondary and shall not contribute with
Borrower’s insurance, (iv) provide that Administrative Agent is to receive thirty

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(30) days written notice prior to non-renewal or cancellation, (v) be evidenced by a
certificate of insurance to be provided to Administrative Agent or, if the applicable Tenant does
not customarily provide certificates of insurance, such other form of document customarily provided
by the applicable Tenant, along with a copy of the policy for the ISO Special Form or All-Risk
Property coverage, (vi) include either policy or binder numbers on the Accord form, and (vii) be in
form and amounts as those policies described in Exhibit I or otherwise reasonably
acceptable to Administrative Agent. Borrower acknowledges that Borrower has been advised by
Administrative Agent of, and agrees that the requirements of this Section 6.8 and
Exhibit I are in compliance with the following legal limitation regarding hazard insurance
coverage pursuant to Arizona Revised Statutes Section 44-1208: “. . . . for any loan that is
secured by real property, a person shall not require as a condition of the loan that the borrower
obtain property insurance coverage in an amount that exceeds the replacement cost of the
improvements as established by the property insurer.”

     6.9 ERISA.

     (a) Borrower and the ERISA Affiliates each will take all actions and fulfill all
conditions necessary to maintain any and all Plans in substantial compliance with
applicable requirements of ERISA, the Code and applicable foreign law until such Plans
are terminated, and the liabilities thereof discharged, in accordance with applicable
law, in each case to the extent that failure to do so could reasonably be expected to
result in liability to Borrower in an amount in excess of the Threshold Amount.

     (b) No Plan will have any “accumulated funding deficiency” (within the meaning of
Section 412 of the Code), which deficiency could cause a Material Adverse Change.

     (c) Borrower and the ERISA Affiliates each will take and fulfill all actions and
conditions necessary to maintain, and will maintain, substantial compliance of any and
all employee benefit plans established or maintained, or to which contributions are made
by Borrower and the ERISA Affiliates with the requirements of ERISA and the rules and
regulations adopted thereunder, in each case as in effect at the time and to the extent
that failure to do so could reasonably be expected to result in liability to Borrower in
an amount in excess of the Threshold Amount.

     (d) Borrower shall otherwise act to ensure that the assets of Borrower are not “plan
assets” of any employee benefit plan subject to the fiduciary responsibility requirements
of ERISA, or, subject to receipt of prior notice by Administrative Agent and
Administrative Agent’s consent thereto, Borrower shall otherwise ensure that an exemption
from Section 406 of ERISA is available to cover the loan transaction with respect to each
portion thereof.

     6.10 Title Insurance. Administrative Agent may determine from time to time the
allocation of title insurance between parcels of Collateral, and the amount of title insurance
coverage that Borrower is required to provide pursuant to the Title Policy (in each case, not to
exceed the Appraised Value of the applicable Qualified Property), and Administrative Agent

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may enter into such agreements with Title Company as Administrative Agent reasonably deems
appropriate, including, without limitation, aggregation agreements, which shall contain such terms
and conditions as Administrative Agent may reasonably require.

     6.11 Use of Proceeds of Advances. Borrower will use proceeds of Advances only for the
purposes described in Section 2.16(b).

     6.12 Further Assurances. Borrower will promptly execute, acknowledge and deliver such
additional agreements, documents and instruments and do or cause to be done such other acts as
Administrative Agent may reasonably request from time to time to better assure, preserve, protect
and perfect the interest of Administrative Agent and the Lenders in the Collateral and the rights
and remedies of Administrative Agent and the Lenders under this Agreement and the other Loan
Documents. Without limiting the foregoing, to the extent that Administrative Agent reasonably
determines from time to time the Mortgage Instruments, amendments to the Mortgage Instruments,
financing statements, subordinations and other documents are required in order to perfect all Liens
and Encumbrances in favor of Lenders, and cause all Collateral encumbered by the Mortgage
Instruments to be subject only to Permitted Exceptions, Borrower will execute and deliver such
documents, instruments and other agreements as Administrative Agent may reasonably request.

     6.13 Costs and Expenses of Borrower’s Performance of Covenants and Satisfaction of
Conditions. Borrower will perform, or cause to be performed, all of its obligations and
satisfy all conditions applicable to it under this Agreement and the other Loan Documents at no
cost or expense to the Lenders or Administrative Agent.

     6.14 Notification of Certain Matters. Borrower will promptly disclose to
Administrative Agent, the occurrence of, (a) any default, notice of default, or “event of default”
with respect to Borrower’s Partnership Agreement, (b) any Material Adverse Change, or (c) any
change in, or failure to satisfy, the Requirements of any Governmental Authority with respect to
Borrower or the Collateral to the extent such change or failure could reasonably be expected to
result in a Material Adverse Change.

     6.15 Deposit Accounts. Borrower shall maintain JPMorgan Chase Bank, N.A. as its
principal depository bank for all deposit accounts and operating accounts related to the Qualified
Properties, and, to the extent permitted by law and contractual agreements, security and escrow
deposits for the Qualified Properties.

     6.16 Financial Covenants. Borrower shall cause Guarantor to maintain the following:

     (a) Net Worth Requirement. As of the end of each fiscal quarter of
Guarantor commencing with the fiscal quarter ending September 30, 2009, Total
Stockholders Equity plus Redeemable Common Stock, as reported on its 10-K or 10-Q SEC
filings shall not be less than $308,778,022.00 plus 75% of the Net Equity Contributions
or sales of treasury stock received by Guarantor after June 30, 2009.

     (b) Leverage Requirement. As of the end of each fiscal quarter of Guarantor
commencing with the fiscal quarter ending September 30, 2009, Total Liabilities shall not
exceed 60% of Guarantor’s Total Asset Value.

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     (c) Fixed Charge Coverage Requirement. As of the end of each fiscal quarter
of Guarantor commencing with the fiscal quarter ending September 30, 2009, the ratio of
EBITDA for the four (4) fiscal quarters ending on such date to Consolidated Debt Service
for the four (4) fiscal quarters ending on such date shall not be less than 1.5:1.00.

     (d) Dividend Payout Ratio. The Dividend Payout Ratio of Guarantor shall
not, in any event, exceed ninety-five percent (95%).

     (e) REIT Status. Guarantor shall remain qualified as a real estate
investment trust under Section 856 of the Code.

     6.17 Rights of Inspection; Correction of Defects.

     (a) Generally. Subject to the rights of the Tenants under the Leases,
Administrative Agent and its respective agents, employees and representatives will have
the right to enter upon the Qualified Properties included in Eligible Collateral, during
normal business hours upon advance written notice (unless in the event of an emergency in
which event no advance notice but only prompt notice shall be required) and, if requested
by Borrower, accompanied by representative of Borrower, in order to inspect such
Qualified Properties; provided, however, such visits shall (a) not occur when any
independent auditors are conducting an audit of any member of the Consolidated Group
(provided, Administrative Agent’s representatives shall be entitled to inspect a
Qualified Property site so long as such auditors are not conducting any such audit at
such Qualified Property site) and, (b) subject to the rights of Tenant, not materially
disrupt the operations of any Tenant. Borrower shall not be responsible for any costs or
expenses for more than one visit in any calendar year unless such visit is performed
during the continuance of an Event of Default. If Administrative Agent reasonably
determines and notifies Borrower in writing that any materials, work or Improvements do
not conform, in any material respect, with any applicable Requirements or Laws, Borrower
will promptly take such action to cause the Qualified Properties to conform, in all
material respects, with such Requirements or Laws.

     (b) No Right to Rely. All inspections by Administrative Agent and other
actions by Administrative Agent in connection therewith are for the sole purpose of
protecting the security of Administrative Agent and the Lenders and are not to be
construed as a representation by Administrative Agent that any of the materials, work or
Improvements are in compliance with any Requirements or Laws or otherwise free from
defect. No such inspections or review will limit any of the rights and remedies of
Administrative Agent pursuant to this Agreement or the other Loan Documents, including
without limitation, the right to require compliance with Section 6.10. Based on
such inspections, Administrative Agent may, in its sole but reasonable business judgment
discretion, adjust the Eligible Collateral, the Borrowing Base Values, Available
Commitment, the Borrowing Base and other calculations pursuant to this Agreement.
Borrower may make or cause to be made such other independent inspections as Borrower may
desire for its own protection.

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     (c) Inspector(s). Administrative Agent may employ outside inspectors to
perform some or all of the inspection duties set forth in this Section 6.17 and
may also elect to have its own employees perform some or all of such inspection duties
and review the reports of outside inspectors.

     (d) Miscellaneous. Any inspections or determinations made by Administrative
Agent or lien waivers, receipts, or other agreements, documents and instruments obtained
by Administrative Agent are made or obtained solely for Administrative Agent’s own
benefit and not in any way for the benefit or protection of Borrower. Administrative
Agent may accept and rely on any information from an architect, any other Person
providing labor, materials or services for the Qualified Properties, Borrower, or any
other Person as to labor or materials furnished or incorporated in the Qualified
Properties and the cost and payment therefor and as to all other matters relating to
construction of the Improvements without the necessity of verifying such information.
Administrative Agent will not have any obligation to Borrower to ensure compliance by
contractor, engineer, or any other Person in carrying out construction of any
Improvements upon the Qualified Properties.

     6.18 Notice of Default. Borrower shall immediately deliver to Administrative Agent
any notices of default that Borrower or any other Loan Party receives regarding a default by
Borrower or any other Loan Party with respect to any Indebtedness of Borrower or any other Loan
Party in excess of $1,000,000.00.

ARTICLE 7

BORROWER NEGATIVE COVENANTS

     The following negative covenants shall be applicable to Operating Borrower and (as designated)
Project Borrowers until this Agreement has terminated or expired and all Obligations are paid and
performed in full:

     7.1 Fundamental Changes. Neither Operating Borrower nor any Project Borrower shall
dissolve or liquidate, or become a party to any merger or consolidation, or acquire by purchase,
lease or otherwise all or substantially all of the assets of or Ownership Interest in any Person,
except (a) Investments permitted pursuant to Section 7.8, (b) any Project Borrower may
complete such a transaction with Operating Borrower so long as Operating Borrower is the surviving
Person or with another Project Borrower and (c) any Project Borrower may merge with any other
Person if such merger is for the sole purpose of causing a change in the jurisdiction of
organization of such Project Borrower, the percentage share of Operating Borrower’s ownership of
the Ownership Interests of such Subsidiary is not changed and the Person merged with the applicable
Project Borrower does not have any material liabilities, obligations or other Indebtedness or any
material contractual obligations of any type.

     7.2 Change in Ownership Interest in Project Borrowers. In addition to any requirement
in any other Loan Document, Operating Borrower shall not cause or permit the assignment of any
Ownership Interest in any Project Borrower other than to a Loan Party.

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     7.3 Prohibition on Sales of Assets. Neither Operating Borrower nor any Project
Borrower shall convey, sell, lease, encumber, transfer or otherwise dispose of to any Person (other
than to a Tenant under a Lease approved by Administrative Agent), in one transaction or a series of
transactions, all or substantially all of its business or property, including, without limitation,
the Collateral, except to (a) Administrative Agent under the Loan Documents, (b) a Tenant pursuant
to a Lease, (c) with respect to any Project Borrower, another Loan Party or (d) a third party in
connection with the removal of Qualified Properties and the release of the related Project
Borrowers pursuant to Sections 2.19 and 4.3. However, the restrictions in this
Section 7.3 do not preclude the Liens and Encumbrances created pursuant to and in
accordance with this Agreement and the other Loan Documents or the leasing of improvements located
upon Qualified Properties in the ordinary course of business and in compliance with the
requirements of this Agreement.

     7.4 Prohibition on Amendments to Organizational Documents. Unless Administrative
Agent consents in writing, neither Operating Borrower nor any Project Borrower shall amend, modify,
restate, supplement or terminate any Formation Document in any manner that could reasonably be
expected to adversely affect the rights of Administrative Agent or any Lender, as determined by
Administrative Agent in its sole but reasonable business judgment discretion. Unless
Administrative Agent consents in writing, neither Operating Borrower nor any Project Borrower shall
permit Guarantor to amend, modify, restate, supplement or terminate any Formation Document in any
manner that would adversely affect the rights of Administrative Agent or any Lender in any material
respect, as determined by Administrative Agent in its sole but reasonable business judgment
discretion.

     7.5 Distributions. Operating Borrower shall not declare, make or pay any dividend or
distribution if after giving effect thereto an Event of Default or Unmatured Event of Default shall
have occurred and be continuing; provided, however, notwithstanding the foregoing, Operating
Borrower may make distributions in the amount necessary to maintain the tax status of Guarantor as
a real estate investment trust under Section 856 of the Code.

     7.6 Transactions with Affiliates. Other than arrangements and contracts in existence
as of Effective Date and that have been disclosed to Administrative Agent in writing and any
commercially reasonable advisory fee or commercially reasonable management fee payable to any
Advisor, Operating Borrower will not enter into, or cause, suffer, or permit to exist, any
arrangement or contract with any of its Affiliates that is not a Loan Party, unless such
transaction is on terms that are no less favorable to Operating Borrower than those that could have
been obtained in a comparable transaction on an arms’ length basis from a Person that is not an
Affiliate.

     7.7 Government Regulation. Neither Operating Borrower nor any Project Borrower shall
(a) be or become subject at any time to any law, regulation, or list of any government agency
(including, without limitation, the U.S. Office of Foreign Asset Control list) that prohibits or
limits Lenders from making any Advance or extension of credit to Operating Borrower or any Project
Borrower or from otherwise conducting business with Operating Borrower or any Project Borrower, or
(b) fail to provide documentary and other evidence of Operating Borrower’s or any Project
Borrower’s identity as may be requested by Administrative Agent at any time to enable
Administrative Agent to verify Operating Borrower’s or any Project

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Borrower’s identity or to comply with any applicable law or regulation, including, without
limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

     7.8 Investments. Borrower shall not, and shall not cause or permit Guarantor to,
directly or indirectly make any Investment, except:

     (a) the Permitted Investments;

     (b) advances to officers, directors and employees of Borrower and Guarantor in an
aggregate amount not to exceed $1,000,000 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes;

     (c) Investments in any Person which is a Loan Party;

     (d) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary
course of business, and Investments received in satisfaction or partial satisfaction
thereof from financially troubled account debtors to the extent reasonably necessary in
order to prevent or limit loss;

     (e) Indebtedness (including Investments related thereto) permitted pursuant to
Section 7.10;

     (f) Investments existing on the date hereof which Investments are set forth on
Schedule 7.8 attached hereto;

     (g) Investments of any Person in existence at the time such Person becomes a Project
Borrower; provided such Investment was not made in connection with or anticipation of
such Person becoming a Subsidiary of Operating Borrower (and if applicable, of a
Subsidiary of Operating Borrower) or Guarantor;

     (h) Subsidiaries may be established or created; and

     (i) Investments related to income-producing real estate properties, single tenant or
mixed-use real estate properties, construction in progress, unimproved land, mortgage
notes receivable and collateralized mortgaged-backed securities and any business
activities reasonably incidental thereto and Investments in partnerships or joint
ventures; provided, that such Investments shall, as applicable, be limited as follows:

     (i) Investments in real estate properties that have not been developed (and is
not under development) for any type of commercial, industrial, residential or other
income-generating use shall not at any time exceed an amount equal to 10% of
Guarantor’s Total Asset Value;

     (ii) the aggregate value of Investments in non-wholly owned general and limited
partnerships, joint ventures and other Persons which are not

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corporations (including any such Investments in existence as of the date
hereof) shall not constitute more than 20% of Guarantor’s Total Asset Value;

     (iii) Investments in real estate properties under construction in progress
shall not at any time exceed an amount equal to 10% of Guarantor’s Total Asset
Value; and

     (iv) Investments in mortgage notes receivable and collateralized
mortgaged-backed securities shall not, in the aggregate, exceed an amount equal to
10% of Guarantor’s Total Asset Value and, in any case, the aggregate value of
Investments in collateralized mortgaged-backed securities shall not exceed 5% of
Guarantor’s Total Asset Value;

provided, that, notwithstanding anything to the contrary contained herein, the value
of the Investments permitted pursuant to clauses (i)(i) — (iv) above shall
not, in any case, exceed an amount equal to 30% of Guarantor’s Total Asset Value.

     7.9 Liens and Encumbrances. Except for (a) Permitted Exceptions, (b) Liens and
Encumbrances securing the Obligations, and (c) involuntary Liens and Encumbrances being contested
in a manner provided in paragraph (b)(i) through (iii) of the definition of “Permitted
Exceptions” or as otherwise permitted by the applicable Mortgage Instrument, Operating Borrower
shall not, and shall not cause or permit any Project Borrower to, grant or suffer to exist any Lien
or Encumbrance upon any Qualified Properties included in Eligible Collateral.

     7.10 Limitations on Indebtedness. Neither Operating Borrower nor any Project Borrower
shall assume, create, incur, permit to exist or guaranty any Indebtedness or contingent
obligations, except:

     (a) the Obligations;

     (b) trade obligations and normal accruals in the ordinary course of business not yet
due and payable (or being contested in a manner provided in paragraph (b)(i) through
(iii) of the definition of “Permitted Exceptions” or as otherwise permitted in the
Loan Documents);

     (c) the TCF Indebtedness and the Indebtedness outstanding on the date hereof and
listed on Schedule 7.10 and any refinancings, refundings, renewals or extensions
thereof; provided that the amount of such Indebtedness is not increased at the time of
such refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses reasonably
incurred, in connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder;

     (d) obligations (contingent or otherwise) of any Project Borrower existing or
arising under any Swap Contract, provided that (i) such obligations are (or were) entered
into by such Person in the ordinary course of business for the purpose of directly
mitigating risks associated with liabilities, commitments, investments, assets, or
property held or reasonably anticipated by such Person, or changes in the value of

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securities issued by such Person, and not for purposes of speculation or taking a
“market view;” and (ii) such Swap Contract does not contain any provision exonerating the
non-defaulting party from its obligation to make payments on outstanding transactions to
the defaulting party;

     (e) Indebtedness in respect of capital leases and purchase money obligations for
fixed or capital assets; provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $1,000,000.00; and

     (f) Guaranties in respect of Indebtedness or other performance obligations otherwise
permitted hereunder.

ARTICLE 8

EVENTS OF DEFAULT

     8.1 Events of Default. The occurrence of any of the following shall constitute an
"Event of Default” under the this Loan Agreement and the other Loan Documents:

     (a) Failure to (i) pay and satisfy any and all Obligations on the Maturity Date, or
(ii) pay any principal when due, including any required Remargining Payment;

     (b) Failure to pay any monetary amount not set forth in Section 8.1(a)
(whether interest, fees or otherwise) within five (5) Business Days after the due date
thereof;

     (c) Except as provided elsewhere in this Section 8.1, failure by Borrower or
any Loan Party to perform any Obligation not involving the payment of money, or to comply
with any other term or condition applicable to Borrower or any Loan Party under any of
the Loan Documents, on or before the date that is thirty (30) days after written notice
of such failure by Administrative Agent to Borrower; provided, however, if such failure
cannot be cured within such cure period, such cure period shall be extended by a
reasonable amount of time needed to cure such failure not to exceed 60 days after
Borrower’s receipt of such notice;

     (d) Borrower’s and/or any other Loan Party’s violation of any of the provisions of
Section 6.16 or Article 7, or any other of Borrower’s and/or any other
Loan Party’s financial covenants or negative covenants in this Agreement or in the other
Loan Documents;

     (e) Any representation or warranty by Borrower or any Loan Party in this Agreement
or in any of the other Loan Documents is, as of the date made, materially false,
incorrect, or misleading, or Borrower omits to state a material fact necessary to make
such representation or warranty not false, incorrect or misleading in a material respect;

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     (f) The failure of Borrower or any other Loan Party to maintain the insurance
coverages required pursuant to this Agreement and the other Loan Documents.

     (g) Borrower or any Loan Party (i) is unable or admits in writing its inability
generally to pay its monetary obligations as they become due; (ii) makes a general
assignment for the benefit of creditors; or (iii) applies for, consents to or acquiesces
in, the appointment of a trustee (other than a trustee under a deed of trust), receiver,
or other custodian for Borrower or any Loan Party or any material portion or all of the
property of Borrower or any Loan Party, or, in the absence of such application, consent
or acquiescence by Borrower or any Loan Party, a trustee, receiver or other custodian is
appointed for Borrower or any Loan Party or any or all of the property of Borrower or any
Loan Party and such appointment continues undischarged or unstayed for 60 days after the
appointment thereof;

     (h) Commencement of any case under the Bankruptcy Code or commencement of any other
bankruptcy, arrangement, reorganization, receivership, custodianship or similar
proceeding under any federal, state or foreign law by or against Borrower or any Loan
Party; provided, however, with respect to any involuntary proceeding not initiated by
Borrower or any Loan Party or any Affiliate of Borrower or any Loan Party, such
commencement will not be an Event of Default so long as Borrower or any Loan Party, as
applicable, is in good faith contesting such involuntary proceeding, and such proceeding
is stayed or dismissed within 90 days after the commencement thereof;

     (i) The dissolution or liquidation of Borrower or any Loan Party or the taking of
any action by Borrower or any Loan Party toward a dissolution or liquidation;

     (j) The filing of any foreclosure proceeding, giving notice of a trustee’s sale, or
any other action by any Person, other than Administrative Agent, to realize upon any of
the Collateral under any Lien or Encumbrance on any or all of the Collateral, regardless
of whether such Lien or Encumbrance is a Permitted Exception and regardless of whether
junior or senior to the applicable Mortgage Instrument; provided, however, such filing,
giving of notice or other action will not be an Event of Default (i) so long as Borrower
or any Loan Party, as applicable, is in good faith contesting such proceeding, sale or
other action, and such proceeding, sale or other action is stayed or dismissed within 60
days after the commencement thereof or (ii) if the Collateral subject thereto is excluded
from the Borrowing Base and any resulting Remargining Payment is paid by Borrower within
60 days after the commencement of such proceeding, sale or other action;

     (k) Borrower or any Loan Party, or any other Person on Borrower’s behalf or any Loan
Party’s behalf, claims that this Agreement or any other Loan Document is not legal,
valid, binding and enforceable against Borrower or any such Loan Party, that any lien,
security interest or other encumbrance securing any of the Obligations is not legal,
valid, binding or enforceable, or that the priority of any lien, security interest or

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other encumbrance securing any of the Obligations is different than the priority
represented and warranted in the Loan Documents;

     (l) The cessation, for any reason, of any Loan Document to be in full force and
effect in all material respects; the failure of any lien intended to be created by the
Loan Documents to exist or to be valid and perfected; the cessation of any such lien, for
any reason, to have the priority contemplated by this Agreement or the other Loan
Documents; or the revocation by Guarantor of the Repayment Guaranty or any other Loan
Document executed by Guarantor;

     (m) The occurrence of a Change of Control;

     (n) Except as provided elsewhere in this Section 8.1, any default by
Borrower or Guarantor under any of the other Loan Documents (after expiration of
applicable notice and cure periods thereunder or hereunder);

     (o) Any default or “event of default” shall occur and be continuing (after
expiration of applicable notice and cure periods with respect thereto) under any recourse
Indebtedness of Borrower (which Indebtedness is limited by Section 7.10 above) in an
amount greater than the Threshold Amount, including, without limitation, under the TCF
Indebtedness;

     (p) The occurrence or existence of any default, event of default or similar
condition or event (however described) with respect to any Swap Agreement (after
expiration of applicable notice and cure periods thereunder) and the termination value
thereunder is greater than the Threshold Amount;

     (q) Violation of ERISA regulations that has resulted in liability of Operating
Borrower in an aggregate amount in excess of the Threshold Amount; or

     (r) Any judgment or order against Borrower or Guarantor for the payment of money in
excess of the Threshold Amount (not covered by insurance, subject to customary
deductibles), and such judgment or order is not vacated, stayed, satisfied, discharged or
bonded pending appeal within sixty (60) days from the entry thereof.

     8.2 Remedies. Upon the occurrence of any Event of Default and at any time thereafter,
for so long as such Event of Default is continuing, Administrative Agent may, and at the direction
of the Required Lenders, shall, take one or more of the following actions:

     (a) Termination of Commitments. Declare, on behalf of itself and the
Lenders, any Commitment to make Advances or otherwise provide credit pursuant to this
Agreement and the other Loan Documents suspended or terminated, whereupon any obligation
to make further Advances and provide credit will immediately be suspended or terminated.
Notwithstanding the foregoing, in the event of any Event of Default pursuant to
Section 8.1(h), the Commitment of Lenders to make Advances and otherwise provide
credit pursuant to this Agreement shall be automatically terminated without any further
action or election by Administrative Agent or the Lenders.

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     (b) Acceleration. Declare, on behalf of itself and the Lenders, any or all
of the Obligations to be immediately due and payable in full, whereupon all of the
principal, interest and other Obligations will forthwith become due and payable in full
without presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived. Notwithstanding the foregoing, in the event of any Event of Default
pursuant to Section 8.1(h), the Obligations shall be immediately due and payable
without any further action or election by Administrative Agent or the Lenders.

     (c) Enforcement of Rights. Enforce any and all rights and remedies under
this Agreement and the other Loan Documents against any or all Collateral and may pursue
all rights and remedies available at law or in equity.

     (d) Receivers. Without limiting any other rights and remedies to which it
is entitled, Administrative Agent may, on behalf of itself and the Lenders, without
notice to Borrower or any other Loan Party, or without regard to the adequacy of the
Collateral for the payment of the Obligations, appoint one or more receivers of the
Collateral, and Borrower and the other Loan Parties do hereby irrevocably consent to such
appointment, with such receivers having all the usual powers and duties of receivers in
similar cases, including the full power to maintain, sell, dispose and otherwise operate
the Collateral upon such terms that may be approved by a court of competent jurisdiction.

     8.3 Collateral Protection. Administrative Agent may, at any time, but will not be
obligated to, make Protective Advances which will be deemed to be Advances hereunder. In addition,
Administrative Agent may, on behalf of itself and the Lenders, but shall not be obligated to, take
all action necessary to cure such Event of Default and expend all sums necessary therefor. All
amounts so Advanced will be immediately due and payable by Borrower and will be added to the
outstanding principal amount of all Advances.

     8.4 Secured by Collateral and Mortgage Instruments. All Protective Advances, all
other Advances by Lenders, and all other reasonable charges, costs and expenses, including
reasonable attorneys’ fees, incurred or paid by Administrative Agent in exercising any right, power
or remedy conferred by this Agreement or any other Loan Document, or in the enforcement hereof, or
in the protection of the Collateral, together with interest thereon at the Floating Rate, prior to
the occurrence of an Event of Default, and at the Default Interest Rate thereafter, from the date
advanced, paid or incurred until repaid shall be secured by the Mortgage Instruments. Any
Protective Advance will only occur through Administrative Agent or at Administrative Agent’s
direction and will not be funded directly to Borrower or any of its Affiliates. Notwithstanding
the foregoing, each Protective Advance and the charges, costs and expenses, including reasonable
attorneys’ fees, incurred or paid by Administrative Agent in exercising any right, power or remedy
conferred by this Agreement or any other Loan Document or in the enforcement thereof or in the
protection of the Collateral shall be charged to Borrower pursuant to Section 2.17. The
amount of such Protective Advances shall be secured by the Mortgage Instruments.

     8.5 Multiple Real and Personal Property Security. Borrower hereby acknowledges that
Lenders are extending credit based upon both the financial statements of Borrower and

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Guarantor and the values of the Collateral. Accordingly, Borrower hereby agrees that, from
and after any Event of Default, Administrative Agent will be allowed, to the greatest extent
permitted by applicable law, including the laws of whichever jurisdiction Administrative Agent may
choose as most facilitating for the exercise of the rights of Administrative Agent and Lenders (and
which may be applicable), to pursue and realize upon all of the remedies available to it under any
of the Loan Documents, at law, in equity, or otherwise, and simultaneously or consecutively, in the
discretion of Administrative Agent, including, without limitation, commencement of one or more
actions in one or more jurisdictions for repayment of all or portions of the Obligations, for the
separate or simultaneous sale or foreclosure of the Collateral or portions thereof, for the
obtaining of judgments and/or deficiency judgments, for the seeking of injunctive relief and
receiverships, and for maximum access to and realization from the Obligations and Collateral or
portions thereof in such manner as Administrative Agent may deem in the interest of Lenders, and
Borrower hereby waives any requirement that any deficiency judgment proceeding be initiated or
completed with respect to any other property constituting Collateral as a condition to commencing
any enforcement proceeding against any party or any particular item of Collateral. Borrower hereby
expressly acknowledges and agrees that various consents, waivers and agreements set forth in any of
the Loan Documents, including the Mortgage Instruments, were granted in recognition of the
foregoing, and that all such waivers, consents and agreements will apply to each other Loan
Document as though set forth therein. In addition to any other consents, waivers and agreements
set forth in any of the Loan Documents, and without limiting the foregoing, Borrower agrees that,
to the maximum extent permitted by applicable law, Administrative Agent may foreclose on and/or
sell all properties serving as Collateral located in the same state in any one or more counties
where any of the properties in that state are located; any personal property located on real
property encumbered by the Mortgage Instruments may be foreclosed upon in the manner provided for,
simultaneously with, and as a part of the proceeding for, foreclosure of the real property; and
Borrower hereby waives the benefits of any “one-action rule” which may be applicable to it or to
any of the Collateral and waives marshaling of assets for itself and all other parties claiming by,
through or under it.

     8.6 Scheduled Payments. Administrative Agent and Borrower acknowledge that
notwithstanding the continuation of an Event of Default, Borrower may elect to continue to make
scheduled payments. Administrative Agent’s acceptance of any such payments shall not be a waiver
of any rights and remedies, and Administrative Agent, on behalf of itself and the Lenders, shall
continue to be entitled to all such rights and remedies (including, without limitation,
acceleration and foreclosure). Administrative Agent may apply any such scheduled payments to the
Obligations in such order as Administrative Agent may determine.

ARTICLE 9

MISCELLANEOUS

     9.1 Binding Effect; Assignments. The provisions of this Agreement shall be binding
upon and inure to the benefit of Borrower, Administrative Agent and Lenders and their respective
successors and assigns permitted hereby, except that (i) Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of each
Lender, which consent may be withheld, conditioned or delayed in each such Lender’s sole and
absolute discretion (and any attempted assignment or transfer by Borrower without consent

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shall be null and void), and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section 9.1. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants (to the
extent provided in Section 9.2) and, to the extent stated in this Agreement, the Affiliates
of each of Administrative Agent and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement. Lenders are not a joint venturer or a partner with Borrower.
Each Lender may assign its rights and obligations under this Agreement and the other Loan
Documents in accordance with the following provisions:

     (a) Subject to the conditions set forth in Section 9.1(b) below, any Lender
may assign to one or more assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment Amount and the Advances at
the time owing to it) with the prior written consent (such consent not to be unreasonably
withheld, conditioned or delayed) of:

     (i) Borrower; provided, however, that no consent of Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund, a Federal
Reserve Bank or, if an Event of Default has occurred and is continuing, any other
assignee; and

     (ii) Administrative Agent; provided, however, that no consent of Administrative
Agent shall be required for an assignment to an assignee that is a Lender with a
Commitment Amount in place immediately prior to giving effect to such assignment.

     (b) Assignments by Lenders shall be subject to the following additional conditions:

     (i) except in the case of an assignment to a Lender or an Affiliate of a
Lender, or an assignment of the entire remaining amount of the assigning Lender’s
Commitment Amount, the amount of the Commitment Amount of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to Administrative Agent)
shall not be less than $5,000,000.00 unless each of Borrower and Administrative
Agent otherwise consent (such consent to not be unreasonably withheld, conditioned
or delayed), provided that no such consent of Borrower shall be required if an Event
of Default has occurred and is continuing;

     (ii) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement;

     (iii) the parties to each assignment shall execute and deliver to
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500.00 payable to Administrative Agent by the assigning
Lender;

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     (iv) the assignee, if it shall not be a Lender, shall deliver to Administrative
Agent an Administrative Questionnaire in which the assignee designates one or more
representatives to whom all syndicate-level information (which may contain material
non-public information about Borrower, Guarantor or any other Loan Parties, and
their Affiliates, or their respective securities) will be made available and who may
receive such information in accordance with the assignee’s compliance procedures and
applicable laws, including federal and state securities laws; and

     (v) the assignee may not be an Affiliate of Borrower, Guarantor or any other
Loan Party.

     (c) Subject to acceptance and recording thereof pursuant to Section 9.1(e),
from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.11,
and 9.12). Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 9.1 shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with Section 9.2.

     (d) Administrative Agent, acting for this purpose as an agent of Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it
and a register for the recordation of the names and addresses of the Lenders, and the
Commitment Amount of, and principal amount of the Advances owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and Borrower, Administrative Agent and Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior written notice.

     (e) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in Section 9.1(b)(iii) and any written consent to such assignment
required by Section 9.1(a), Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register; provided,
however, that if either the assigning Lender or the assignee shall have failed to make
any payment required to be made by it pursuant to Section 2.3(b), 2.15(d) or
9.12(b), Administrative Agent shall have no obligation to

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accept such Assignment and Assumption or record the information therein in the
Register unless and until such payment shall have been made in full, together with all
accrued interest thereon. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this Section
9.1.

     9.2 Participations.

     (a) Any Lender may, without the consent of Borrower or Administrative Agent, sell
participations to one or more banks or other entities (each a “Participant”) in
all or a portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment Amount and the Advances owing to it); provided,
however, that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, and (C) Borrower, Administrative Agent and the Lenders
shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided, however, that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in the first
proviso to Section 9.11(b) that affects such Participant. Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.7, 2.8 and
2.11 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 9.1. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.10 as though it
were a Lender, provided such Participant agrees to be subject to Sections 2.15(c)
and 12.8 as though it were a Lender.

     (b) A Participant shall not be entitled to receive any greater payment under
Section 2.7 or 2.11 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to
the benefits of Section 2.11 unless Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of Borrower, to
comply with Section 2.11(e) as though it were a Lender.

     (c) In no event may a Participant be an Affiliate of Borrower, Guarantor or any
other Loan Party.

     9.3 Pledges by Lenders. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure obligations to a Federal
Reserve Bank, and Sections 9.1 and 9.2 shall not apply to any such pledge or
assignment of a security interest; provided, however, that no such pledge or assignment of a
security interest shall

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release a Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

     9.4 Survival. All covenants, agreements, representations and warranties made by
Borrower herein and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of this Agreement and the making of any Advances,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that Administrative Agent or any Lender may have had notice or knowledge of (i) any Event of
Default, (ii) any Unmatured Event of Default, or (iii) an incorrect representation or warranty at
the time any credit is extended hereunder, and all such covenants, agreements, representations and
warranties shall continue in full force and effect as long as the principal of, or any accrued
interest on, any Advances, or any fee or any other amounts payable under this Agreement are
outstanding and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.7, 2.8, 2.11 and 9.12 and Article 12 shall
survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Advances, the expiration or termination the Commitments
or the termination of this Agreement or any provision hereof.

     9.5 Integration; Entire Agreement. This Agreement and the other Loan Documents
contain the complete understanding and agreement of Borrower, Administrative Agent and the Lenders
with respect to the transactions contemplated by this Agreement and supersede all prior
representations, warranties, agreements, arrangements, understandings and negotiations with respect
thereto.

     9.6 Severability. If any provision or any part of any provision of any Loan Document
is unenforceable, the enforceability of the other provisions and the remainder of the subject
provision, respectively, will not be affected and they will remain in full force and effect.

     9.7 CHOICE OF LAW. THIS AGREEMENT AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
THEREIN, THE OTHER LOAN DOCUMENTS, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND
THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF ARIZONA,
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS RULES OF THE STATE OF ARIZONA.

     9.8 Time of Essence; Time for Performance. Time is of the essence with regard to each
provision of this Agreement and the other Loan Documents as to which time is a factor. Whenever
any performance under this Agreement or any other Loan Document is stated to be due on a day other
than a Business Day or whenever the time for taking any action under this Agreement or any other
Loan Document would fall on a day other than a Business Day, then unless otherwise specifically
provided in this Agreement and the other Loan Documents the due date for such performance or the
time for taking such action, as the case may be, will be extended to the next succeeding Business
Day, and such extension of time will be included in the computation of interest or fees, as the
case may be.

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     9.9 Notices and Demands.

     (a) Generally. Except in the case of notices and other communications
expressly permitted to be given by electronic transmission (other than facsimile
transmission) subject to Section 9.9(b) below, all notices and other
communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by facsimile,
as follows:

     (i) if to any or all Persons comprising Borrower, to Cole REIT III Operating
Partnership, LP, c/o Cole Real Estate Investments, 2555 East Camelback Road, #400,
Phoenix, Arizona 85016, Attention: Chief Financial Officer (and with a copy to
General Counsel), Facsimile No. (602) 788-8780;

     (ii) if to Administrative Agent, to it at JPMorgan Chase Bank, N.A., 201 North
Central Avenue, 14th Floor, AZ1-1328, Phoenix, Arizona 85004, Attention: Commercial
Real Estate Loan Administration, Facsimile No. (602) 221-1116; and

     (iii) if to any other Lender, to it at its address (or telecopy number) set
forth in its Administrative Questionnaire provided to Administrative Agent and
Borrower.

     (b) Electronic Notices. In addition to those Sections of this Agreement
that specifically allow notice by electronic transmission, Administrative Agent, the
Lenders or Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures
approved by it; provided that approval of such procedures may be limited to particular
notices or communications.

     (c) Changes in Address. Any party hereto may change its address or
facsimile number for notices and other communications hereunder by notice to the other
parties hereto. All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been given on
the date of receipt.

     9.10 Right of Set-Off. Borrower grants to each of the Lenders, without demand or
notice to Borrower but only if an Event of Default shall have occurred and be continuing, the right
to set-off and apply deposits (whether certificates of deposit, demand, general, savings, special,
time or other, and whether provisional or final) held by Lenders for Borrower and any other
liabilities or other obligations of Lenders to Borrower (“Borrower Deposits, Liabilities and
Obligations”) against or to the Obligations of Borrower, regardless of whether Borrower
Deposits, Liabilities and Obligations are contingent, matured or unmatured, and Borrower grants a
security interest to Lenders in the Borrower Deposits, Liabilities and Obligations to secure the
Obligations of Borrower under the Loan Documents.

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     9.11 Waivers; Amendments.

     (a) No Deemed Waivers; Remedies Cumulative. No failure or delay by
Administrative Agent or any Lender in exercising any right or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such right
or power, or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other right or
power. The rights and remedies of Administrative Agent and the Lenders under this
Agreement and the other Loan Documents are cumulative and are not exclusive of any rights
or remedies that they would otherwise have. No waiver of any provision of this Agreement
or consent to any departure by Borrower therefrom shall in any event be effective unless
the same shall be permitted by Section 9.11(b), and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of an Advance shall not be
construed as a waiver of any Event of Default or Unmatured Default, regardless of whether
Administrative Agent or any Lender may have had notice or knowledge of such Event of
Default or Unmatured Default at the time.

     (b) Waivers and Amendments. No provision of this Agreement or any other
Loan Document may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by Borrower and the Required Lenders (as hereinafter
defined) or by Borrower and Administrative Agent with the consent of the Required
Lenders; provided, however, that no such agreement shall (i) increase the Commitment
Amount of any Lender without the written consent of such Lender, (ii) reduce the
principal amount of any Advance or reduce the rate of interest thereon, or reduce any
fees payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of any Advance or
any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or
excuse any such payment, without the written consent of each Lender affected thereby,
(iv) change Section 2.15(b) or (c) in a manner that would alter the pro
rata sharing of payments required thereby, without the written consent of each Lender,
(v) change any of the provisions of this Section or the definition of “Required Lenders”
or any other provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Lender, (vi) release Guarantor
from any of its obligations under the Loan Documents or release all or substantially all
of the Collateral from the lien of the Loan Documents (in any case, except to the extent
provided in Section 2.19 and Section 4.3), without the written consent of
each Lender, or (vii) permit an assignment by Borrower of any rights or obligations under
the Loan Documents, without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of
Administrative Agent hereunder without the prior written consent of Administrative Agent.

     (c) Actions by Administrative Agent; Required Consents. Each Lender
authorizes Administrative Agent to enter into the Loan Documents (other than this
Agreement) on behalf of, and for the benefit of, the Lenders and to take all actions left

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to the discretion of Administrative Agent herein and therein on behalf of, and for
the benefit of, the Lenders. Each Lender agrees that any action taken by Administrative
Agent at the direction of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in this Agreement), and
any action taken by Administrative Agent not requiring consent by the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in this Agreement) shall be authorized by and binding upon all
Lenders. Notwithstanding the foregoing provisions of this Section 9.11(c),
Administrative Agent shall not have the authority to bind the Lenders with respect to any
of the following matters without Administrative Agent obtaining the prior written consent
of the Required Lenders:

     (i) the approval of any modification of the provisions of Section 4.2
or Section 6.16;

     (ii) the exercise of any rights and remedies against Borrower, Guarantor, the
other Loan Parties or the Qualified Properties; provided, however, that
Administrative Agent may, in its discretion but without obligation, in the absence
of direction from the Required Lenders, take such interim action as it believes
necessary to preserve the rights of the Lenders hereunder and in and to the
Qualified Properties, including, without limitation, (i) the delivery of default
notices to Borrower or any other Person, (ii) petitioning a court for injunctive
relief, the appointment of a receiver or preservation of the proceeds of any
collateral, (iii) the making of Advances for the payment of interest, and (iv) the
exercise of the cure rights of Administrative Agent under this Agreement or the
other Loan Documents; and

     (iii) the expenditure of funds by Administrative Agent for which the Lenders
are responsible under Section 9.12 to cure Events of Defaults in excess of
Five Hundred Thousand and No/100 Dollars ($500,000.00) in the aggregate;
provided, however, that expenditures to pay any of the following
items shall not be subject to the foregoing limitation in amount: (i) real estate
taxes, assessments, charges and levies owing with respect to the Qualified
Properties, (ii) insurance premiums owing with respect to insurance coverage
required by the Loan Documents, (iii) claims of lienholders with priority over the
lien of the Mortgage Instruments, (iv) expenditures necessary to respond to
emergency conditions with respect to the Qualified Properties, and (v) expenditures
necessary to preserve the validity and priority of the lien of the Mortgage
Instruments.

     9.12 Expenses; Indemnity; Damage Waiver.

     (a) Expenses and Indemnity. Operating Borrower and each Project Borrower
shall, jointly and severally, (a) indemnify, defend and hold harmless Administrative
Agent and the Lenders, and their respective Affiliates, and their respective officers,
directors, employees, advisors and agents (each, an “Indemnitee”) for, from and
against any and all losses, claims, damages and liabilities to which any such Indemnitee
may become subject arising out of or in connection with this

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Agreement, the other Loan Documents, the Commitment (and the syndication thereof),
the use of the proceeds thereof or any related transaction or any claim, litigation,
investigation or proceeding relating to any of the foregoing, regardless of whether any
Indemnitee is a party thereto, and to reimburse each Indemnitee upon demand for any third
party expenses incurred in connection with investigating or defending any of the
foregoing (including, without limitation, reasonable legal expenses); provided, however,
that the foregoing indemnity obligations will not, as to any Indemnitee, apply to losses,
claims, damages, liabilities or related expenses to the extent they are found by a final,
non-appealable judgment of a court to arise from the willful misconduct or gross
negligence of such Indemnitee, and (b) reimburse Administrative Agent and the Lenders,
and their respective Affiliates, on demand for all out-of-pocket expenses (including due
diligence expenses, appraisals, syndication expenses, consultant’s fees and expenses,
travel expenses, and reasonable fees, charges and disbursements of counsel) incurred in
connection with the Commitment (and the syndication thereof) and the Loan Documents, or
incurred in connection with the amendment, modification, waiver or enforcement thereof.

     (b) Reimbursement by Lenders. To the extent that Borrower fails to pay any
amount required to be paid by it to Administrative Agent under Sections 9.12(a),
each Lender severally agrees to pay to Administrative Agent such Lender’s respective
Commitment Amount Percentage (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount; provided, however, that
the unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against Administrative Agent in
its capacity as such.

     (c) Damage Waiver. To the extent permitted by applicable law, Borrower
shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this Agreement
or any agreement or instrument contemplated hereby, including, without limitation, the
other Loan Documents, the Commitment and Advances, or the use of the proceeds thereof.

     (d) Payment of Amounts Due. All amounts due under this Section shall be
payable immediately after written demand therefor.

     9.13 Rescission or Return of Payments. If at any time or from time to time, whether
before or after payment and performance of the Obligations in full, all or any part of any amount
received by Lenders in payment of, or on account of, any Obligation is or must be, or is claimed to
be, avoided, rescinded or returned by Lenders to Borrower or any other Person for any reason
whatsoever (including, without limitation, bankruptcy, insolvency or reorganization of Borrower or
any other Person), such Obligations and any liens, security interests and other encumbrances that
secured such Obligations at the time such avoided, rescinded or returned payment was received by
Lender will be deemed to have continued in existence or will be reinstated, as the case may be, all
as though such payment had not been received.

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     9.14 Headings; References. The headings at the beginning of each section of the Loan
Documents are solely for convenience and are not part of the Loan Documents. Unless otherwise
noted, references in this Agreement to “Sections,” “Articles,” “Exhibits,” and “Schedules” refer to
the Sections and Articles in this Agreement and the Exhibits and Schedules attached to this
Agreement.

     9.15 Number and Gender. In the Loan Documents the singular will include the plural
and vice versa and each gender will include the other genders.

     9.16 No Brokers. Except as disclosed to Administrative Agent in writing prior to the
Effective Date of this Agreement, Borrower represents and warrants that it knows of no broker’s or
finder’s fee due in respect of the transaction described in this Agreement and that it has not used
the services of a broker or a finder in connection with this transaction. Borrower releases and
shall indemnify, defend and hold harmless Administrative Agent and the Lenders for, from and
against any claims, liabilities, costs, damages and expenses (including attorneys’ fees) based on
Borrower’s failure or alleged failure to pay any realtors, brokers, finders or agents claiming by,
through or on behalf of Borrower with respect to the Commitment, this Agreement or any of the other
Loan Documents.

     9.17 Counterpart Execution. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original and all of which together will constitute
one and the same document. Signature pages may be detached from the counterparts and attached to a
single copy of this Agreement to physically form one document. Facsimile signature pages will be
acceptable, provided originally signed signature pages are provided to each of the other parties by
overnight courier.

     9.18 Duty to Act in Good Faith. Each of the parties to this Agreement agrees to act
in good faith with respect to all of its rights, privileges, duties and obligations under this
Agreement.

     9.19 USA PATRIOT ACT. Administrative Agent and the Lenders hereby notify Borrower
that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”), they are required to obtain, verify and record
information that identifies Borrower, which information includes the name and address of Borrower
and other information that will allow Administrative Agent and the Lenders to identify Borrower in
accordance with the Act. Borrower certifies to Administrative Agent and the Lenders that (i) it is
not acting directly or indirectly for or on behalf of any person, group, entity, or nation named by
any Executive Order or the United States Treasury Department, through its office of Foreign Assets
Control (“OFAC”) or otherwise, as a terrorist, “Specially Designated Nation,” “Blocked
Person,” or other banned or blocked person, entity, nation, or transaction pursuant to any law,
order, rule or regulation that is enforced or administered by OFAC or another department of the
United States government, and (ii) Borrower is not engaged in this transaction (directly or
indirectly) on behalf of, or instigating or facilitating this transaction (directly or indirectly)
on behalf of, any such person, group, entity or nation. Borrower shall indemnify, defend, and hold
harmless Administrative Agent and the Lenders for, from and against any claims, damages, losses,
risks, liabilities and expenses (including reasonable attorneys’ fees and costs) arising from or
related to any breach of the foregoing certification.

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     9.20 Confidentiality.

          Each of Administrative Agent and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to their and their
Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and
other advisors (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any Governmental Authority, (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to the Obligations or the enforcement of rights under the Loan
Documents or any Swap Agreement, (f) subject to an agreement containing provisions substantially
the same as those of this Section 9.20, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement,
or (ii) any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to
Borrower and its obligations, (g) with the consent of Borrower, (h) to holders of Ownership
Interest in Borrower, or (i) to the extent such Information (i) becomes publicly available other
than as a result of a breach of this Section 9.20 or (ii) becomes available to
Administrative Agent or any Lender on a nonconfidential basis from a source other than Borrower.
For the purposes of this Section 9.20, “Information” means all information received
from Borrower relating to Borrower or its business, other than any such information that is
available to Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by
Borrower. Any Person required to maintain the confidentiality of Information as provided in this
Section 9.20 shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.

          EACH LENDER ACKNOWLEDGES THAT INFORMATION (AS DEFINED IN THIS SECTION 9.20) FURNISHED
TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL, NON-PUBLIC INFORMATION CONCERNING BORROWER,
GUARANTOR AND THE OTHER LOAN PARTIES, AND THEIR AFFILIATES, OR THEIR RESPECTIVE SECURITIES, AND
CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL, NON-PUBLIC
INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL, NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE
PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

          ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY BORROWER OR
ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL, NON-PUBLIC INFORMATION ABOUT BORROWER,
GUARANTOR AND THE OTHER LOAN PARTIES, AND THEIR AFFILIATES, OR THEIR RESPECTIVE SECURITIES.
ACCORDINGLY, EACH LENDER REPRESENTS TO BORROWER AND ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN
ITS ADMINISTRATIVE QUESTIONNAIRE A REPRESENTATIVE WHO MAY RECEIVE

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INFORMATION THAT MAY CONTAIN MATERIAL, NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS
COMPLIANCE PROCEDURES AND APPLICABLE LAW.

     9.21 Replacement Documentation. Upon receipt of an affidavit, reasonably acceptable
to Borrower, of an officer of Administrative Agent or any of the Lenders as to the loss, theft,
destruction or mutilation of a Notes or any other Loan Document which is not of public record,
Borrower will issue, in lieu thereof, a replacement Notes or other Loan Document in the same
principal amount thereof and otherwise of like tenor. In the event that Borrower issues such
replacement Notes or other Loan Document, the Lender who is the payee on the lost, destroyed,
mutilated or stolen Notes or Loan Document shall indemnify and hold harmless Borrower from any
liability incurred by Borrower in connection with the lost, stolen, destroyed or mutilated Notes or
Loan Document.

     9.22 Swap Agreements. All Swap Agreements, if any, between Borrower and any Lender or
Affiliate of any Lender are independent agreements governed by the written provisions of said Swap
Agreements, which will remain in full force and effect, unaffected by any repayment, prepayment,
acceleration, reduction, increase or change in the terms of the Loan Documents, except as otherwise
expressly provided in said written Swap Agreements, and any payoff statement from Administrative
Agent relating to the Obligations shall not apply to said Swap Agreements.

     9.23 Collateral and Release Matters. The Lenders and each Issuing Lender irrevocably
authorize the Administrative Agent to release any Lien on any of the Collateral (i) upon
termination of the Aggregate Commitment and payment in full of all Obligations (other than
contingent indemnification obligations) and the expiration or termination of all Letters of Credit
(other than Letters of Credit as to which other arrangements satisfactory to the Administrative
Agent and the applicable Issuing Lender shall have been made), (ii) and any Project Borrower from
the Loan Documents to which it is a party to the extent provided in Section 2.19, or (iii)
subject to Section 9.11, if approved, authorized or ratified in writing by all the Lenders.

ARTICLE 10

POWER OF ATTORNEY

     10.1 Power of Attorney Granted. Borrower and the other Loan Parties hereby
irrevocably appoint Administrative Agent as their true and lawful attorney, with full power of
substitution for and on behalf of them and in their name, after the occurrence and during the
continuation of an Event of Default, to take any action to preserve, maintain, protect or enforce
the rights and interests of Borrower or the other Loan Parties with respect to the Collateral,
including, without limitation, to (a) enforce, cure any default or otherwise act with respect to
any agreements pertaining to or affecting any of the Collateral; (b) take all such action and to
execute all such documents as Administrative Agent reasonably deems necessary to operate or
preserve or protect the Collateral; and (c) sue for, demand or collect any sums owing to Borrower
or any of the other Loan Parties under escrows or other agreements affecting the Collateral. The
power so vested in Administrative Agent is one coupled with an interest and will be irrevocable,
except by written instrument executed jointly by Borrower (or the applicable Loan Party) and
Administrative Agent. Notwithstanding the foregoing, Administrative Agent is under no

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obligation to exercise any of the foregoing rights or take any action necessary to preserve
any right in any Collateral against any other Person, and Administrative Agent, to the extent
permitted herein or by applicable law, may exercise any of the foregoing rights without incurring
any responsibility or liability to Borrower, the Loan Parties or any other Person and without in
any way affecting this Agreement or the other Loan Documents or any other obligations of Borrower
and the other Loan Parties to Administrative Agent and the Lenders. Borrower will reimburse
Administrative Agent within fifteen (15) days following written demand for any reasonable third
party costs and expenses, including, without limitation, reasonable attorneys’ fees and collection
costs, that Administrative Agent may incur while acting as the attorney-in-fact of Borrower or the
other Loan Parties as provided hereunder.

ARTICLE 11

JURY WAIVER

     11.1 JURY WAIVER. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
11.1.

ARTICLE 12

ADMINISTRATIVE AGENT

     12.1 Appointment. Each of the Lenders hereby irrevocably appoints Administrative
Agent as its agent and authorizes Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to Administrative Agent by the terms hereof, together with
such actions and powers as are reasonably incidental thereto.

     12.2 Capacity as Lender. The bank serving as Administrative Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender and may exercise
the same as though it were not Administrative Agent, and such bank and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with Borrower, Guarantor
or any other Loan Party, or any Affiliates thereof, as if it were not Administrative Agent
hereunder.

     12.3 Duties and Obligations. Administrative Agent shall not have any duties or
obligations except those expressly set forth herein. Without limiting the generality of the
foregoing, (a) Administrative Agent shall not be subject to any fiduciary or other implied duties,
regardless of whether an Event of Default or Unmatured Default has occurred and is continuing, (b)
Administrative Agent shall not have any duty to take any discretionary action or exercise any

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discretionary powers, except discretionary rights and powers expressly contemplated hereby
that Administrative Agent is required to exercise in writing as directed by the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary under the circumstances as
provided in this Agreement), and (c) except as expressly set forth herein, Administrative Agent
shall not have any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to Borrower, Guarantor or any other Loan Party, or any of their subsidiaries
or Affiliates, that is communicated to or obtained by the bank serving as Administrative Agent or
any of its Affiliates in any capacity. Administrative Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
this Agreement) or in the absence of its own gross negligence or willful misconduct.
Administrative Agent shall deliver written notice to the other Lenders of any Event of Default that
Administrative Agent has knowledge of; provided, however, Administrative Agent shall be deemed not
to have knowledge of any Event of Default or Unmatured Default unless and until written notice
thereof is given to Administrative Agent by Borrower or a Lender, and Administrative Agent shall
not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents of any certificate,
report or other document delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any
condition set forth in this Agreement, other than to confirm receipt of items expressly required to
be delivered to Administrative Agent, (vi) the value, sufficiency, creation, perfection or priority
of any lien on the Qualified Properties or the Collateral, or (vii) the financial condition of
Borrower or Guarantor or any other Loan Party.

     12.4 Reliance. Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing believed by it to be genuine and to have been signed or sent
by the proper Person. Administrative Agent also may rely upon any statement made to it orally or
by telephone and believed by it to be made by the proper Person, and shall not incur any liability
for relying thereon. Administrative Agent may consult with legal counsel (who may be counsel for
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

     12.5 Sub-Agents. Administrative Agent may perform any and all its duties and exercise
its rights and powers by or through any one or more sub-agents appointed by Administrative Agent.
Administrative Agent and any such sub-agent may perform any and all its duties and exercise its
rights and powers through their respective Affiliates. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Affiliates of Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

     12.6 Resignation. Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this Section 12.6, Administrative Agent may resign at
any

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time, or shall resign at the written request of the Required Lenders as a result of
Administrative Agent’s gross negligence or willful misconduct in performing its duties under this
Agreement, by notifying the Lenders and Borrower. Upon any such resignation, the Required Lenders
shall have the right, in consultation with Borrower, to appoint a successor Administrative Agent.
If no successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within thirty (30) days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent which shall be an Approved Fund, or an Affiliate of any such
Approved Fund. Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. The fees payable by Borrower to a
successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between Borrower and such successor. After Administrative Agent’s resignation
hereunder, the provisions of this Article 12 and Section 9.12 shall continue in
effect for the benefit of such retiring Administrative Agent, its sub agents and their respective
Affiliates in respect of any actions taken or omitted to be taken by any of them while it was
acting as Administrative Agent.

     12.7 Independent Credit Analysis. Each Lender acknowledges that it has, independently
and without reliance upon Administrative Agent or any Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon Administrative Agent or any Lender and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any of the other Loan Documents or any related agreement
or document furnished hereunder or thereunder.

     12.8 Lender Actions Against Collateral. Each Lender agrees that it will not take any
action, nor institute any actions or proceedings, with respect to the Obligations, against
Borrower, Guarantor, or any other Loan Party or against any of the Qualified Properties or other
Collateral (including, without limitation, set-off rights) without the consent of the Required
Lenders. With respect to any action by Administrative Agent to enforce the rights and remedies of
Administrative Agent and the Lenders under this Agreement and the other Loan Documents, each Lender
hereby consents to the jurisdiction of the court in which such action is maintained, and agrees to
deliver its Notes to Administrative Agent to the extent necessary to enforce the rights and
remedies of Administrative Agent for the benefit of the Lenders under the applicable Mortgage
Instrument in accordance with the provisions hereof. Each Lender agrees to indemnify each of the
other Lenders for any loss or damage suffered or cost incurred by such other Lender (including
without limitation, attorneys’ fees and expenses and other costs of defense) as a result of the
breach of this Section 12.8 by such Lender.

     12.9 Lender Reply Period. All communications from Administrative Agent to Lenders
requesting Lenders’ determination, consent or approval (i) shall be given in the form of a written
notice to each Lender, (ii) shall be accompanied by a description of the matter as to which such
determination, consent or approval is requested, (iii) shall include a legend substantially as
follows, printed in capital letters or boldface type:

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          “THIS COMMUNICATION REQUIRES IMMEDIATE RESPONSE. FAILURE TO RESPOND WITHIN TEN (10) BUSINESS
DAYS AFTER THE DELIVERY OF THIS COMMUNICATION SHALL CONSTITUTE A DEEMED APPROVAL BY THE ADDRESSEE
OF THE MATTER DESCRIBED ABOVE.”

and (iv) shall include Administrative Agent’s recommended course of action or determination in
respect thereof. Each Lender shall reply promptly to any such request, but in any event within ten
(10 business days after the delivery of such request by Administrative Agent (the “Lender Reply
Period”). Unless a Lender shall give written notice to Administrative Agent that it objects to the
recommendation or determination of Administrative Agent (together with a written explanation of the
reasons behind such objection) within the Lender Reply Period, such Lender shall be deemed to have
approved of or consented to such recommendation or determination. With respect to decisions
requiring the approval of the Required Lenders or all Lenders, Administrative Agent shall timely
submit any required written notices to all Lenders and upon receiving the required approval or
consent shall follow the course of action or determination recommended by Administrative Agent or
such other course of action recommended by the Required Lenders or all of the Lenders, as the case
may be, and each non-responding Lender shall be deemed to have concurred with such recommended
course of action.

     12.10 Foreclosure. In the event that all or any of the Qualified Properties are
acquired by Administrative Agent as the result of a foreclosure or acceptance of a deed or
assignment in lieu of foreclosure, or is retained in satisfaction of all or any part of the
Obligations (each a “Foreclosure Property”), title to any such Foreclosure Property or any portion
thereof shall be held in the name of Administrative Agent or a nominee or subsidiary of
Administrative Agent, as agent, for the benefit of the Lenders, or in an entity co-owned by the
Lenders as determined by Administrative Agent. Administrative Agent shall prepare a recommended
course of action for such Foreclosure Property (the “Post-Foreclosure Plan”) and submit it to the
Lenders for approval by the Required Lenders. In the event that Administrative Agent does not
obtain the approval of the Required Lenders to such Post-Foreclosure Plan, any Lender shall be
permitted to submit an alternative Post-Foreclosure Plan to Administrative Agent, and
Administrative Agent shall submit any and all such additional Post-Foreclosure Plan(s) to the
Lenders for evaluation and the approval by the Required Lenders. In accordance with the approved
Post-Foreclosure Plan, Administrative Agent shall manage, operate, repair, administer, complete,
construct, restore or otherwise deal with the Foreclosure Property acquired and administer all
transactions relating thereto, including, without limitation, employing a management agent, leasing
agent and other agents, contractors and employees, including agents for the sale of such
Foreclosure Property, and the collecting of rents and other sums from such Foreclosure Property and
paying the expenses of such Foreclosure Property. Upon demand therefor from time to time, each
Lender will contribute its ratable share (based on their respective Commitment Amount Percentage)
of all reasonable costs and expenses incurred by Administrative Agent pursuant to the
Post-Foreclosure Plan in connection with the construction, operation, management, maintenance,
leasing and sale of the Foreclosure Property. In addition, Administrative Agent shall render or
cause to be rendered by the managing agent, to each of the Lenders, monthly, an income and expense
statement for such Foreclosure Property, and each of the Lenders shall promptly contribute its
ratable share (based on their respective Commitment Amount Percentage) of any operating loss for
the Foreclosure Property, and such other expenses and operating reserves as Administrative Agent
shall deem reasonably necessary pursuant to and in

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accordance with the Post-Foreclosure Plan. To the extent there is net operating income from
such Foreclosure Property, Administrative Agent shall, in accordance with the Post-Foreclosure
Plan, determine the amount and timing of distributions to the Lenders. All such distributions
shall be made to the Lenders in proportion to their respective Commitments immediately prior to the
termination thereof. The Lenders acknowledge that if title to any Foreclosure Property is obtained
by Administrative Agent or its nominee, or an entity co-owned by the Lenders, such Foreclosure
Property will not be held as a permanent investment but will be disposed of as soon as practicable
and within a time period consistent with the regulations applicable to national banks for owning
real estate. Administrative Agent shall undertake to sell such Foreclosure Property at such price
and upon such terms and conditions as the Required Lenders shall reasonably determine to be most
advantageous. Any purchase money mortgage or deed of trust taken in connection with the
disposition of such Foreclosure Property in accordance with the immediately preceding sentence
shall name Administrative Agent, as agent for the Lenders, as the beneficiary or mortgagee. In
such case, Administrative Agent and the Lenders shall enter into an agreement with respect to such
purchase money mortgage defining the rights of the Lenders in the same, which agreement shall be in
all material respects similar to the rights of the Lenders with respect to the Foreclosure
Property. Lenders agree not to unreasonably withhold or delay their approval of a Post-Foreclosure
Plan or any third party offer to purchase the Foreclosure Property. An offer to purchase the
Foreclosure Property at a gross purchase price of 95% of the fair market value of the property as
set forth in a current Appraisal, shall be deemed to be a reasonable offer.

     12.11 Defaulting Lender. Notwithstanding any provision of this Agreement to the
contrary, if a Lender becomes a Defaulting Lender, the following provisions shall apply for so long
as such Lender is a Defaulting Lender:

     (a) Suspension of Voting Rights. A Defaulting Lender’s right to participate
in the administration of, or decision-making rights related to, the Commitment, this
Agreement or the other Loan Documents (including any consent to any amendment or waiver
pursuant to Section 9.11) shall be suspended for so long as such Lender remains a
Defaulting Lender; provided, however, that any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender (provided the Defaulting
Lender is so affected) pursuant to Section 9.11 shall continue to require the
consent of the Defaulting Lender.

     (b) Turn Over of Payments. All amounts payable hereunder to the Defaulting
Lender in respect of the Obligations (whether on account of principal, interest, fees or
otherwise, including, without limitation, interest payments from interest reserve
allocations to the Defaulting Lender and any amounts that would otherwise be payable to
the Defaulting Lender pursuant to Section 2.15, but excluding Section
2.18(b)), shall be paid to Administrative Agent, retained in a segregate account and,
subject to any applicable requirements of law, be applied at such time or times as may be
determined by Administrative Agent as follows: (i) first, to the payment of any amounts
owing by the Defaulting Lender to Administrative Agent hereunder, (ii) second, to the
funding of any Advance in respect of which the Defaulting Lender has failed to fund its
portion as required by this Agreement, as determined by Administrative Agent, (iii)
third, to the payment of any amounts owing by the

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Defaulting Lender to the non-Defaulting Lenders hereunder, including without
limitation for any Special Advance under paragraph (c) of this Section 12.11,
(iv) fourth, if so determined by Administrative Agent, held in such account as cash
collateral for future funding obligations of the Defaulting Lender under this Agreement,
and (v) fifth, to the Defaulting Lender or as otherwise directed by a court of competent
jurisdiction; provided that if such payment is (x) a prepayment of the principal amount
of any Advances, and (y) made at a time when the conditions set forth in Section
4.1 are satisfied, such payment shall be applied solely to repay the Advances of all
non-Defaulting Lenders pro rata prior to being applied to the prepayment of any Advances
owed to the Defaulting Lender.

     (c) Special Advances. If a Defaulting Lender fails to fund its portion of
any Advance, in whole or part, within three (3) Business Days after the date required
hereunder and Administrative Agent shall not have funded the Defaulting Lender’s portion
of the Advance under Section 2.3(b), Administrative Agent shall so notify the
Lenders, and within three (3) Business Days after delivery of such notice, the
non-Defaulting Lenders shall have the right, but not the obligation, in their respective,
sole and absolute discretion, to fund all or a portion of such deficiency (the amount so
funded by any such non-Defaulting Lenders being referred to herein as a “Special
Advance”) to Borrower. In such event, the Defaulting Lender and Borrower severally agree
to pay to Administrative Agent for payment to the non-Defaulting Lenders making the
Special Advance, forthwith on demand such amount with interest thereon, for each day from
and including the date such amount is made available to Borrower to but excluding the
date of payment to Administrative Agent, at (i) in the case of the Defaulting Lender, the
greater of the Federal Funds Effective Rate and a rate determined by Administrative Agent
in accordance with banking industry rules on interbank compensation, or (ii) in the case
of Borrower, the Interest Rate for the Borrowing pursuant to which such Special Advance
is a made.

     (d) Option to Purchase Future Commitment. The non-Defaulting Lenders shall
have the right, but not the obligation, in their respective, sole and absolute
discretion, to acquire for no cash consideration (pro rata, based on the respective
Commitment Amount Percentage of those Lenders electing to exercise such right),
Defaulting Lender’s Commitment to fund future Advances (the “Future Commitment”).
Upon any such purchase of the Defaulting Lender’s Future Commitment, the Defaulting
Lender’s share in future Advances and its rights under the Loan Documents with respect
thereto shall terminate on the date of purchase, and the Defaulting Lender shall promptly
execute all documents reasonably requested to surrender and transfer such interest.

     (e) Replacement of Defaulting Lender.

     (i) By Required Lenders. The Required Lenders may, upon notice to the
Defaulting Lender, Borrower and Administrative Agent, require the Defaulting Lender
to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 9.1) all its interests, rights and
obligations under this Agreement to an assignee that shall assume such

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obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Defaulting Lender shall have received payment of
an amount equal to the outstanding principal of its Advances, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder from the
assignee (to the extent of such outstanding principal and accrued interest and fees)
or Borrower (in the case of all other amounts); and (ii) Administrative Agent shall
have received payment of any amounts owing by such Defaulting Lender to
Administrative Agent or the Lenders under this Agreement. The Defaulting Lender
shall not be required to make any such assignment and delegation if, prior thereto,
such Lender shall cease to be a Defaulting Lender.

     (ii) By Borrower. If the Lender has become a Defaulting Lender due to
a failure to fund its Advances hereunder, Borrower may at its option replace such
Defaulting Lender under Section 2.18(b).

     (f) Indemnification. Each Defaulting Lender shall indemnify, defend and
hold harmless Administrative Agent, each non-Defaulting Lender and Borrower for, from and
against any liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatever which may be
imposed on, incurred by or asserted against Administrative Agent, any non-Defaulting
Lender or Borrower with respect to the Loan Documents in any way relating to or arising
out of such Lender’s status as a Defaulting Lender. The obligations of the Defaulting
Lender under this clause (f) shall survive the payment of the Obligations, the
termination of this Agreement and the Defaulting Lender’s reversion to a non-Defaulting
Lender under paragraph (g) of this Section 12.11.

     (g) Ceasing to be a Defaulting Lender. A Lender shall cease to be
Defaulting Lender only upon (i) the payment of all amounts due and payable by Defaulting
Lender to Administrative Agent or any Lender under this Agreement; (ii) the payment of
any damages suffered by Borrower as a result of such Defaulting Lender’s default
hereunder (including, without limitation, interest at the Prime Rate plus 3% on any
portion of draw requests funded by Borrower with equity); (iii) the confirmation by the
Defaulting Lender to Administrative Agent and Borrower in writing that the Defaulting
Lender will comply with all of its funding obligations under this Agreement; and (iv) the
circumstances described in clause (e) of the definition of “Defaulting Lender” do not
exist. An assignment by a Defaulting Lender of its rights and obligations under this
Agreement shall not in and of itself cause the Defaulting Lender to cease to be a
Defaulting Lender.

     12.12 Borrower’s Rights. The provisions of this Article 12 that do not
explicitly affect the rights or obligations of Borrower are solely for the benefit of
Administrative Agent and the Lenders, and Borrower shall not have any rights to rely on, enforce or
consent to any waiver, modification or amendment of, any of such provisions; provided, however,
that Borrower (a) shall have the right to consent to any waiver, modification or amendment of any
provision of the above referenced subparagraphs of Article 12 that affect the rights or
obligations of Borrower or any other Loan Party, (b) acknowledges and agrees to the limitations set
forth in Section 9.11(c) on Administrative Agent’s ability to act unilaterally with respect
to this

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 Agreement
and the other Loan Documents, and (c) agrees that Administrative Agent’s inability to deliver any consent
to, or approval of, an action requested by Borrower due lack of appropriate Lender consent in
accordance with the provisions of Section 9.11(c) shall not constitute an unreasonable
withholding or delay by Administrative Agent in the giving of such consent or approval.
Notwithstanding the foregoing, Borrower shall be entitled to rely on consents and approvals
executed by Administrative Agent without investigation as to the existence of proper Lender
authorization.

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

	 	 	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:	 	JPMORGAN CHASE BANK,
N.A., a national
 banking association	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Matthew C. Berg	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Matthew C. Berg	 	 
	 

	 	 	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	OPERATING BORROWER:	 	COLE REIT III OPERATING
PARTNERSHIP,
 LP, a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	By:	 	Cole Credit Property
Trust III, Inc. a 
Maryland
corporation, its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                 /s/ D. Kirk McAllaster, Jr.
 	 
	 	 	Name:  	D. Kirk McAllaster, Jr. 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[PROJECT BORROWER SIGNATURE PAGES FOLLOW]

 

 

	 	 	 	 	 	 	 	 	 
	PROJECT BORROWERS:	 	Cole SC Hoover AL, LLC,
a Delaware limited 
liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole AS Montgomery AL,
LLC, a Delaware 
limited
liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole KO Rancho Cordova CA, LP, a Delaware
 limited
partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole GP CCPT III, LLC,
a Delaware limited

liability company, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By: 

	 	Cole REIT Advisors III, LLC, a 
Delaware
limited liability company, 
its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole HD San Jose CA, LP, a Delaware limited

partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole GP CCPT III, LLC, a Delaware limited

liability company, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Cole REIT Advisors III, LLC, a 
Delaware
limited liability company, 
its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole KO Port Orange FL, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG Warner Robins
GA, LLC, a Delaware 
limited
liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG Nampa ID, LLC,
a Delaware limited 
liability
company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole BB Bourbonnais IL,
LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG McPherson KS, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole CV Lees Summit MO,
LLC, a Delaware 
limited
liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole CV Raymore MO,
LLC, a Delaware limited 
liability
company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole HD Las Vegas NV, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG Dunkirk NY,
LLC, a Delaware limited 
liability
company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole CV Thomasville NC,
LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG Stillwater OK, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG Denton TX, LLC,
a Delaware limited 
liability
company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole WG Houston
(Quitman) TX, LLC, a Delaware 
limited
liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	Cole CV Kyle TX, LLC, a
Delaware limited 
liability
company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

 

 

	 	 	 	 	 	 	 
	 	 	Cole CV McAllen TX,
LLC, a Delaware limited liability 
company
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III, LLC, a Delaware 
limited
liability company, its Manager

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 
	 	 	Cole HD Odessa TX, LLC, a Delaware limited 
liability
company
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III, LLC, a Delaware 
limited
liability company, its Manager

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 
	 	 	Cole CV Fredericksburg VA, LLC, a Delaware 
limited
liability company
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III, LLC, a Delaware 
limited
liability company, its Manager

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	Cole CV Newport News VA, LLC, a Delaware 
limited
liability company
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III,
LLC, a Delaware 
limited
liability company, its Manager

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 
	 	 	Cole CV Virginia Beach VA, LLC, a Delaware 
limited
liability company
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III, LLC, a Delaware 
limited
liability company, its Manager

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 	 	 
	 	 	Cole WG St. George UT,
LLC, a Delaware limited

liability company
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Cole REIT Advisors III, LLC, a Delaware 
limited
liability company, its Manager

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ John M. Pons
 	 
	 	 	John M. Pons 	 
	 	 	Executive Vice President 	 
	 

[LENDER SIGNATURE PAGES FOLLOW]

 

 

	 	 	 	 	 	 	 	 
	LENDERS:	 	JPMORGAN CHASE BANK,
N.A., a national banking association
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Amy Flood
	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Amy Flood
	 

	 	 	 	Title:
	 	Senior Vice President

[CONTINUED ON FOLLOWING PAGE]

 

 

	 	 	 	 	 	 	 
	LENDERS:	 	US BANK NATIONAL
ASSOCIATION, 
 a national banking association
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Troy Lyscio
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Troy Lyscio
	 

	 	 	 	Title:
	 	VP

[CONTINUED ON FOLLOWING PAGE]

 

 

	 	 	 	 	 	 	 
	LENDERS:	 	RBS CITIZENS, N.A., d/b/a CHARTER ONE
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Erin L. Mahon
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Erin L. Mahon
	 

	 	 	 	Title:
	 	Assistant Vice President

[CONTINUED ON FOLLOWING PAGE]

 

 

	 	 	 	 	 	 	 
	LENDERS:	 	COMERICA BANK
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Adam Sheets
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Adam Sheets
	 

	 	 	 	Title:
	 	Vice President

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	1.2 Accounting Terms and Determinations
	 	 	23	 
	1.3 Computation of Time Periods
	 	 	23	 
	1.4 Construction
	 	 	24	 
	1.5 No Presumption Against Any Party
	 	 	24	 
	ARTICLE 2 COMMITMENT
	 	 	24	 
	2.1 Commitment
	 	 	24	 
	(a) Right to Advances Generally
	 	 	24	 
	(b) Revolving Nature of Commitment
	 	 	24	 
	(c) Increase in Aggregate Commitment
	 	 	25	 
	2.2 Requests for Advances
	 	 	25	 
	(a) Advances
	 	 	25	 
	(b) Interest Elections
	 	 	25	 
	(c) Making an Election
	 	 	25	 
	(d) Content of Election
	 	 	26	 
	(e) Permitted Borrowings
	 	 	26	 
	(f) Failure of Timely Election
	 	 	26	 
	2.3 Funding of New Advances
	 	 	27	 
	(a) Generally
	 	 	27	 
	(b) Advance Fundings
	 	 	27	 
	2.4 Prepayment of Advances; Termination and Reductions of Commitments
	 	 	27	 
	2.5 Interest
	 	 	28	 
	(a) Floating Rate Borrowing
	 	 	28	 
	(b) Eurodollar Borrowing
	 	 	28	 
	(c) Default Interest Rate
	 	 	29	 
	(d) Intentionally Omitted
	 	 	29	 
	(e) Interest Payments
	 	 	29	 
	(f) Computation of Interest
	 	 	29	 
	(g) Advances for Interest and Fees
	 	 	29	 

-i-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	2.6 Alternate Rate of Interest
	 	 	29	 
	2.7 Increased Costs
	 	 	30	 
	 (a) Change in Law
	 	 	30	 
	 (b) Capital Requirements
	 	 	30	 
	 (c) Lender’s Certificate
	 	 	30	 
	 (d) No Waiver
	 	 	31	 
	2.8 Break Funding Payments
	 	 	31	 
	2.9 Electronic Transmission of Draw Requests and Other Documents
	 	 	31	 
	2.10 Maturity of the Obligations
	 	 	32	 
	2.11 Taxes
	 	 	32	 
	 (a) No Deduction For Taxes
	 	 	32	 
	 (b) Other Taxes
	 	 	32	 
	 (c) Tax Indemnity
	 	 	32	 
	 (d) Evidence of Payment
	 	 	33	 
	 (e) Status of Lenders; Tax Documentation
	 	 	33	 
	 (f) Tax Refunds
	 	 	34	 
	2.12 Repayment; Evidence of Debt
	 	 	35	 
	 (a) Repayment at Maturity
	 	 	35	 
	 (b) Lender Accounting
	 	 	35	 
	 (c) Administrative Agent Accounting
	 	 	35	 
	 (d) Prima Facie Evidence
	 	 	35	 
	 (e) Notes
	 	 	35	 
	2.13 Maximum Interest Rate
	 	 	35	 
	2.14 Fees
	 	 	36	 
	 (a) Commitment Fee
	 	 	36	 
	 (b) Administrative Agent Fee
	 	 	36	 
	 (c) Unused Fee
	 	 	36	 
	 (d) Letter of Credit Fee
	 	 	37	 
	 (e) Fees Non-Refundable
	 	 	37	 
	 (f) Computation of Fees
	 	 	37	 

-ii-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	 (g) Closing Costs and Expenses
	 	 	37	 
	2.15 General Provisions as to Payments
	 	 	37	 
	 (a) Payments Generally
	 	 	37	 
	 (b) Application of Insufficient Funds
	 	 	37	 
	 (c) Allocation of Payments
	 	 	38	 
	 (d) Advance Payments
	 	 	38	 
	2.16 Advances
	 	 	38	 
	 (a) Method for Advances
	 	 	38	 
	 (b) Use of Advances
	 	 	39	 
	 (c) Limitation on Advances
	 	 	39	 
	 (d) Application of Payments
	 	 	39	 
	2.17 Costs and Expenses
	 	 	39	 
	 (a) Costs and Expenses
	 	 	39	 
	 (b) Failure to Pay
	 	 	40	 
	2.18 Mitigation Obligations; Replacement of Lenders
	 	 	40	 
	 (a) Mitigation of Increased Costs
	 	 	40	 
	 (b) Replacement of Lenders
	 	 	40	 
	2.19 Releases of Collateral and Project Borrowers
	 	 	41	 
	 (a) Generally
	 	 	41	 
	 (b) Project Borrower
	 	 	42	 
	 (c) Intentionally Omitted
	 	 	42	 
	 (d) Adjustment to Borrowing Base
	 	 	42	 
	2.20 Remargining
	 	 	42	 
	 (a) Maximum Outstanding
	 	 	42	 
	 (b) No Advances
	 	 	42	 
	 (c) Payments
	 	 	42	 
	 (d) Due Date
	 	 	42	 
	2.21 Letters of Credit
	 	 	43	 
	 (a) Issuance of Letters of Credit
	 	 	43	 
	 (b) Issuance Procedures
	 	 	43	 

-iii-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	(c) Reimbursement for Payment of Drafts Drawn or Drawn and
Accepted Under Letters of Credit
	 	 	44	 
	(d) Collateralization of Letters of Credit
	 	 	44	 
	(e) Reimbursement Amounts
	 	 	45	 
	(f) Nature of Reimbursement and Other Obligations
	 	 	46	 
	(g) Indemnification
	 	 	46	 
	ARTICLE 3 BORROWING BASE
	 	 	47	 
	3.1 Determination of Borrowing Base
	 	 	47	 
	3.2 Adjustments to Borrowing Base; Additional Limitations on Borrowing Base
Values
	 	 	47	 
	(a) Adjustments to Borrowing Base
	 	 	47	 
	(b) Additional Limitations on Borrowing Base Values
	 	 	47	 
	3.3 Exclusions from Eligible Collateral
	 	 	48	 
	3.4 Borrowing Base Reports and Collateral Certificates
	 	 	48	 
	(a) Borrowing Base Report and Collateral Certificate
	 	 	48	 
	(b) Form of Report and Certificate
	 	 	48	 
	(c) Approval of Borrowing Base Report and Collateral Certificate
	 	 	48	 
	(d) Frequency of Computation of Borrowing Base
	 	 	49	 
	3.5 General
	 	 	49	 
	3.6 Appraisals
	 	 	49	 
	(a) Appraisal Requirements
	 	 	49	 
	(b) Appraiser Engagement
	 	 	49	 
	(c) Appraisal Evaluation
	 	 	49	 
	(d) Additional Appraisals
	 	 	50	 
	(e) Appraisal Policy Modifications
	 	 	50	 
	(f) Expenses
	 	 	50	 
	ARTICLE 4 CONDITIONS PRECEDENT
	 	 	50	 
	4.1 Conditions Precedent to Effectiveness of this Agreement
	 	 	50	 
	(a) Representations and Warranties Accurate
	 	 	50	 
	(b) No Defaults
	 	 	51	 
	(c) No Material Adverse Change
	 	 	51	 

-iv-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	(d) Documents
	 	 	51	 
	(e) Payment of Costs, Expenses and Fees
	 	 	51	 
	(f) Ownership
	 	 	52	 
	(g) Qualified Properties Purchase Documents
	 	 	52	 
	(h) Leases
	 	 	52	 
	(i) Proforma Budgets
	 	 	52	 
	(j) PML Report
	 	 	52	 
	(k) Plat; Survey
	 	 	52	 
	(l) Zoning
	 	 	52	 
	(m) Inspections; Tests
	 	 	52	 
	(n) Environmental Reports
	 	 	52	 
	(o) Mortgage Instruments; Title Policy
	 	 	52	 
	(p) Flood Zone
	 	 	53	 
	(q) Appraisal
	 	 	53	 
	(r) Searches
	 	 	53	 
	(s) Insurance
	 	 	53	 
	(t) Financial Statements
	 	 	53	 
	(u) IRS Forms
	 	 	53	 
	(v) Opinion Letter
	 	 	53	 
	(w) Other Items
	 	 	53	 
	(x) Other Actions
	 	 	53	 
	4.2 Qualification of Qualified Properties as Eligible Collateral
	 	 	53	 
	4.3 Addition and Removal of Qualified Properties and Project Borrowers
	 	 	55	 
	4.4 Additional Conditions Precedent to All Advances Against Eligible Collateral
	 	 	55	 
	(a) Defaults
	 	 	55	 
	(b) Other Conditions Precedent
	 	 	55	 
	(c) Mortgage Instrument
	 	 	55	 
	(d) Payment of Costs, Expenses, and Fees
	 	 	56	 
	(e) Draw Request
	 	 	56	 

-v-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	(f) Limit on Total Outstanding
	 	 	56	 
	4.5 Right to Waive
	 	 	56	 
	ARTICLE 5 BORROWER REPRESENTATIONS AND WARRANTIES
	 	 	56	 
	5.1 Representations and Warranties
	 	 	56	 
	(a) Formation and Authorization
	 	 	56	 
	(b) No
Approvals, etc.
	 	 	57	 
	(c) No Conflicts
	 	 	57	 
	(d) Execution and Delivery and Binding Nature of Loan Documents
	 	 	57	 
	(e) Accurate Information
	 	 	57	 
	(f) Purpose of Advances
	 	 	58	 
	(g) Legal Proceedings, Hearings, Inquiries and Investigations
	 	 	58	 
	(h) No Defaults
	 	 	58	 
	(i) Approvals and Permits; Assets and Property
	 	 	58	 
	(j) Impositions
	 	 	58	 
	(k) ERISA
	 	 	59	 
	(l) Compliance With Law
	 	 	60	 
	(m) Representations and Warranties Relating to Collateral
	 	 	60	 
	(n) Use of Proceeds; Margin Stock
	 	 	61	 
	(o) Governmental Regulation
	 	 	61	 
	(p) Benefit
	 	 	61	 
	(q) Solvency
	 	 	62	 
	5.2 Representations and Warranties Upon Requests for Advances
	 	 	62	 
	5.3 Representations and Warranties Upon Delivery of Financial Statements,
Documents, and Other Information
	 	 	62	 
	5.4 Nature of Representations and Warranties
	 	 	62	 
	ARTICLE 6 AFFIRMATIVE COVENANTS
	 	 	63	 
	6.1 Corporate Existence
	 	 	63	 
	6.2 Books and Records; Access
	 	 	63	 
	6.3 Covenants Relating to Collateral
	 	 	63	 
	(a) Defense of Title
	 	 	63	 

-vi-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	(b) No Encumbrances
	 	 	64	 
	(c) Utilities
	 	 	64	 
	(d) No Residential Use
	 	 	64	 
	(e) Flood Insurance
	 	 	64	 
	(f) Compliance with Permitted Exceptions
	 	 	64	 
	(g) Improvement Districts
	 	 	65	 
	6.4 Information and Statements
	 	 	65	 
	(a) Annual Statements — Operating Borrower
	 	 	65	 
	(b) Annual Statements — Guarantor
	 	 	65	 
	(c) Quarterly Financial Statements — Operating Borrower
	 	 	65	 
	(d) Quarterly Financial Statements — Guarantor
	 	 	66	 
	(e) Borrowing Base Report and Collateral Certificates
	 	 	66	 
	(f) Environmental Incident Reports
	 	 	66	 
	(g) Compliance Information
	 	 	66	 
	(h)Other Items and Information
	 	 	67	 
	(i) Other Reports
	 	 	67	 
	6.5 Law; Judgments; Material Agreements; Approvals and Permits
	 	 	67	 
	6.6 Impositions and Other Indebtedness
	 	 	67	 
	6.7 Assets and Property
	 	 	67	 
	6.8 Casualty and Liability Insurance
	 	 	67	 
	6.9 ERISA
	 	 	68	 
	6.10 Title Insurance
	 	 	68	 
	6.11 Use of Proceeds of Advances
	 	 	69	 
	6.12 Further Assurances
	 	 	69	 
	6.13 Costs and Expenses of Borrower’s Performance of Covenants and
Satisfaction of Conditions
	 	 	69	 
	6.14 Notification of Certain Matters
	 	 	69	 
	6.15 Deposit Accounts
	 	 	69	 
	6.16 Financial Covenants
	 	 	69	 
	(a) Net Worth Requirement
	 	 	69	 

-vii-

 

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(continued)

	 	 	 	 	 
	 	 	 	Page	 
	(b) Leverage Requirement
	 	 	69	 
	(c) Fixed Charge Coverage Requirement
	 	 	70	 
	(d) Dividend Payout Ratio
	 	 	70	 
	(e) REIT Status
	 	 	70	 
	6.17 Rights of Inspection; Correction of Defects
	 	 	70	 
	(a) Generally
	 	 	70	 
	(b) No Right to Rely
	 	 	70	 
	(c) Inspector(s)
	 	 	71	 
	(d) Miscellaneous
	 	 	71	 
	6.18 Notice of Default
	 	 	71	 
	ARTICLE 7 BORROWER NEGATIVE COVENANTS
	 	 	71	 
	7.1 Fundamental Changes
	 	 	71	 
	7.2 Change in Ownership Interest in Project Borrowers
	 	 	71	 
	7.3 Prohibition on Sales of Assets
	 	 	72	 
	7.4 Prohibition on Amendments to Organizational Documents
	 	 	72	 
	7.5 Distributions
	 	 	72	 
	7.6 Transactions with Affiliates
	 	 	72	 
	7.7 Government Regulation
	 	 	72	 
	7.8 Investments
	 	 	73	 
	7.9 Liens and Encumbrances
	 	 	74	 
	7.10 Limitations on Indebtedness
	 	 	74	 
	ARTICLE 8 EVENTS OF DEFAULT
	 	 	75	 
	8.1 Events of Default
	 	 	75	 
	8.2 Remedies
	 	 	77	 
	(a) Termination of Commitments
	 	 	77	 
	(b) Acceleration
	 	 	78	 
	(c) Enforcement of Rights
	 	 	78	 
	(d) Receivers
	 	 	78	 
	8.3 Collateral Protection
	 	 	78	 
	8.4 Secured by Collateral and Mortgage Instruments
	 	 	78	 

-viii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page	 
	8.5 Multiple Real and Personal Property Security
	 	 	78	 
	8.6 Scheduled Payments
	 	 	79	 
	ARTICLE 9 MISCELLANEOUS
	 	 	79	 
	9.1 Binding Effect; Assignments
	 	 	79	 
	9.2 Participations
	 	 	82	 
	9.3 Pledges by Lenders
	 	 	82	 
	9.4 Survival
	 	 	83	 
	9.5 Integration; Entire Agreement
	 	 	83	 
	9.6 Severability
	 	 	83	 
	9.7 CHOICE OF LAW
	 	 	83	 
	9.8 Time of Essence; Time for Performance
	 	 	83	 
	9.9 Notices and Demands
	 	 	84	 
	(a) Generally
	 	 	84	 
	(b) Electronic Notices
	 	 	84	 
	(c) Changes in Address
	 	 	84	 
	9.10 Right of Set-Off
	 	 	84	 
	9.11 Waivers; Amendments
	 	 	85	 
	(a) No Deemed Waivers; Remedies Cumulative
	 	 	85	 
	(b) Waivers and Amendments
	 	 	85	 
	(c) Actions by Administrative Agent; Required Consents
	 	 	85	 
	9.12 Expenses; Indemnity; Damage Waiver
	 	 	86	 
	(a) Expenses and Indemnity
	 	 	86	 
	(b) Reimbursement by Lenders
	 	 	87	 
	(c) Damage Waiver
	 	 	87	 
	(d) Payment of Amounts Due
	 	 	87	 
	9.13 Rescission or Return of Payments
	 	 	87	 
	9.14 Headings; References
	 	 	88	 
	9.15 Number and Gender
	 	 	88	 
	9.16 No Brokers
	 	 	88	 
	9.17 Counterpart Execution
	 	 	88	 

-ix-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page	 
	9.18 Duty to Act in Good Faith
	 	 	88	 
	9.19 USA PATRIOT ACT
	 	 	88	 
	9.20 Confidentiality
	 	 	89	 
	9.21 Replacement Documentation
	 	 	90	 
	9.22 Swap Agreements
	 	 	90	 
	9.23 Collateral and Release Matters
	 	 	90	 
	ARTICLE 10 POWER OF ATTORNEY
	 	 	90	 
	10.1 Power of Attorney Granted
	 	 	90	 
	ARTICLE 11 JURY WAIVER
	 	 	91	 
	11.1 JURY WAIVER
	 	 	91	 
	ARTICLE 12 ADMINISTRATIVE AGENT
	 	 	91	 
	12.1 Appointment
	 	 	91	 
	12.2 Capacity as Lender
	 	 	91	 
	12.3 Duties and Obligations
	 	 	91	 
	12.4 Reliance
	 	 	92	 
	12.5 Sub-Agents
	 	 	92	 
	12.6 Resignation
	 	 	92	 
	12.7 Independent Credit Analysis
	 	 	93	 
	12.8 Lender Actions Against Collateral
	 	 	93	 
	12.9 Lender Reply Period
	 	 	93	 
	12.10 Foreclosure
	 	 	94	 
	12.11 Defaulting Lender
	 	 	95	 
	(a) Suspension of Voting Rights
	 	 	95	 
	(b) Turn Over of Payments
	 	 	95	 
	(c) Special Advances
	 	 	96	 
	(d) Option to Purchase Future Commitment
	 	 	96	 
	(e) Replacement of Defaulting Lender
	 	 	96	 
	(f) Indemnification
	 	 	97	 
	(g) Ceasing to be a Defaulting Lender
	 	 	97	 
	12.12 Borrower’s Rights
	 	 	97	 

-x-

 

TABLE OF CONTENTS

(continued)

	 	 	 
	 	 	Page
	List of Exhibits and
Schedules
	 
	 	 
	Exhibit A

	 	Form of Assignment and Assumption
	Exhibit B

	 	Form of Assignment of Ownership Interest
	Exhibit C

	 	Form of Borrower Assumption Agreement
	Exhibit D

	 	Form of Borrowing Base Report and Collateral Certificate
	Exhibit E

	 	Form of Compliance Certificate
	Exhibit F

	 	Form of Environmental Agreement
	Exhibit G

	 	Form of Mortgage Instrument
	Exhibit H

	 	Form of Note
	Exhibit I

	 	Required Insurance
	Exhibit J

	 	Form of Draw Request
	Exhibit K

	 	Form of Repayment Guaranty

	 	 	 
	Schedule 1

	 	Lenders
	Schedule 2

	 	Initial Project Borrowers
	Schedule 7.8

	 	Current Investments of Borrower and Guarantor
	Schedule 7.10

	 	Current Indebtedness of Project Borrowers

-xi-exv10w83

Exhibit 10.83

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

Instrument prepared by Bracewell & Giuliani, LLP, Houston, Texas

	 	 	 
	RECORDING REQUESTED BY 

AND RETURN TO:

	 	FIRST AMERICAN TITLE INSURANCE COMPANY 

c/o Heritage Title Company of Austin, Inc. 

401 Congress Avenue, Suite 1500

Austin, Texas 78701
	 
	 	 
	TITLE OF INSTRUMENT:

	 	FIRST DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE

FILING
	 
	 	 
	NAME OF GRANTOR:

	 	COLE MT AUSTIN TX, LLC, a Delaware limited

liability company
	 
	 	 
	NAME OF TRUSTEE:

	 	BRYAN E. LOOCKE
	 
	 	 
	NAME OF BENEFICIARY:

	 	AVIVA LIFE AND ANNUITY COMPANY, an Iowa corporation

Real Property: 1200 – 1201 Barbara Jordan Blvd., Austin, Texas 78722; Legal Description attached
as Exhibit A to this Document, immediately following signature page.

THIS INSTRUMENT IS ALSO A UNIFORM COMMERCIAL CODE FINANCING STATEMENT WHICH IS BEING FILED AS A
FIXTURE FILING. THE COLLATERAL IS DESCRIBED IN THIS DEED OF TRUST, AND SOME OF THE COLLATERAL
DESCRIBED HEREIN IS OR IS TO BECOME FIXTURES ON THE REAL ESTATE DESCRIBED HEREIN. THE SECURED
PARTY-BENEFICIARY, MAY BE CONTACTED AT THE BENEFICIARY’S ADDRESS SHOWN HEREIN FOR INFORMATION
REGARDING THE SECURITY INTEREST.

[DEED OF TRUST]

Loan No. 18906

(i)

 

NOTICE IS HEREBY GIVEN THAT IT IS WITHIN THE CONTEMPLATION AND INTENT OF THE PARTIES THAT THIS
DEED OF TRUST SECURES FUTURE ADVANCES AND IS FOR COMMERCIAL PURPOSES.

[DEED OF TRUST]

Loan No. 18906

Page 1 of 44

 

Mueller Retail (TX.658)

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

FIRST DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

     THIS FIRST DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING (“Deed of Trust”), made as of
January 27, 2010, by and between COLE MT AUSTIN TX, LLC, a Delaware limited liability
company (“Grantor”), with the mailing or post office address of 2555 E. Camelback Road, Suite 400,
Phoenix, AZ 85016, Attention: Legal Department, and BRYAN E. LOOCKE, as Trustee, with the
mailing or post office address of Bracewell & Giuliani LLP, 711 Louisiana Street, Suite 2300,
Houston, Texas 77002-2781 (“Trustee”), for the benefit of AVIVA LIFE AND ANNUITY COMPANY, an Iowa
corporation (“Beneficiary”), with the mailing or post office address of c/o Aviva Investors North
America, Inc., 699 Walnut Street, Dept. H-15, Des Moines, Iowa 50309.

W I T N E S S E T H:

     WHEREAS, Grantor has borrowed from Beneficiary and Beneficiary has loaned to Grantor the sum
of THIRTY-FOUR MILLION, THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($34,300,000.00; and

     WHEREAS, said indebtedness is evidenced by a Promissory Note dated as of the date hereof in
the principal sum of THIRTY-FOUR MILLION, THREE HUNDRED THOUSAND AND NO/100 DOLLARS
($34,300,000.00) (herein, together with all notes issued and accepted in substitution or exchange
therefor, and as any of the foregoing may from time to time be modified, extended, renewed,
consolidated, restated or replaced, called the “Note”), executed by Grantor and payable to
Beneficiary at its office in Des Moines, Iowa, or at such place as Beneficiary may designate in
writing with interest as therein provided, both principal and interest to be payable periodically
in accordance with the terms of the Note and finally maturing on or before the first day of
February 2020.

     NOW, THEREFORE, Grantor, for the purpose of securing the payment of all amounts now or
hereafter owing under the Note, this Deed of Trust, and the faithful performance of all
covenants, conditions, stipulations and agreements therein and herein contained, in
consideration of these premises and other good and valuable consideration, the receipt and
sufficiency of

[DEED OF TRUST]

Loan No. 18906

Page 1 of 44

 

which are hereby acknowledged, hereby GRANTS, BARGAINS, SELLS, CONVEYS, TRANSFERS,
ASSIGNS, AND SETS OVER, the Mortgaged Premises (defined below), subject, however, to the Permitted
Encumbrances, TO HAVE AND TO HOLD the Mortgaged Premises unto Trustee or successors and assigns
forever, IN TRUST WITH POWER OF SALE AND RIGHT OF ENTRY, and Grantor does hereby bind itself, its
successors and assigns to WARRANT AND FOREVER DEFEND, subject, however, to the Permitted
Encumbrances (defined below), indefeasible title to the following property and rights (collectively
referred to as the “Mortgaged Premises”) against every person whomsoever lawfully claiming or to
claim the same or any part thereof:

	 	A.	 	All of the following described real property (hereinafter called the “Land”),
located in Travis County, Texas to wit:

              The real property described in Exhibit “A” attached hereto;

	 	B.	 	All right, title and interest in and to, the buildings and improvements,
situated, constructed, or placed thereon, and all right, title and interest of Grantor
in and to (i) all streets, boulevards, avenues or other public thoroughfares in front
of and adjoining the Land, (ii) all easements, licenses, rights of way, or rights of
ingress or egress benefiting the Land, (iii) all strips, gores or pieces of land
abutting, bounding, adjacent or contiguous to the Land (iv) any land lying in or under
the bed of any creek, stream, bayou or river running through, abutting or adjacent to
the Land, (v) any riparian, appropriative or other water rights of Grantor appurtenant
to the Land and relating to surface or subsurface waters, (vi) all wastewater (sewer)
treatment capacity and all water capacity assigned to the Land, (vii) any oil, gas or
other minerals or mineral rights relating to the Land or to the surface or subsurface
thereof owned by Grantor, (viii) any reversionary rights attributable to the Land;
	 
	 	C.	 	All right, title and interest of Grantor in and to any and all leases,
subleases, licenses, concessions or grants of other possessory interests now or
hereafter in force, oral or written, covering or affecting the Land or any buildings or
improvements belonging or in anyway appertaining thereto, or any part thereof;
	 
	 	D.	 	All right, title and interest of Grantor in and to all the rents, issues, uses,
profits, insurance claims and proceeds and condemnation awards now or hereafter
belonging or in any way pertaining to: (1) the Land; (2) each and every building and
improvement and all of the properties included within the provisions of the
foregoing paragraph B; and (3) each and every lease, sublease and agreement
described in the foregoing paragraph C and each and every right, title and interest
thereunder, from the date of this Deed of Trust until the terms hereof are complied
with and fulfilled;
	 
	 	E.	 	All right, title and interest in and to instruments (including promissory
notes), documents, accounts, chattel paper (whether tangible or electronic), deposit

[DEED OF TRUST]

Loan No. 18906

Page 2 of 44

 

	 	 	 	accounts, letter-of-credit rights, supporting obligations, any other contract rights or
rights to the payment of money, and all general intangibles (including, without
limitation, payment intangibles, and all recorded data of any kind or nature,
regardless of the medium of recording, including, without limitation, all software,
writings, plans, specifications and schematics) now or hereafter belonging or in any
way pertaining to (1) the Land; (2) each and every building and improvement and all of
the properties on the Land; and (3) each and every lease, sublease and agreement
described in the foregoing paragraph C and each and every right, title and interest
thereunder; and
	 
	 	F.	 	All machinery, apparatus, equipment, fixtures and articles of personal property
of every kind and nature now or hereafter acquired by Grantor and now or hereafter
located on the Land or upon or within the buildings and improvements belonging or in
anyway appertaining to the Land and used or usable in connection with any present or
future operation of the Land or any building or improvement now or hereafter located
thereon and the fixtures and the equipment which may be located on the Land and now
owned or hereafter acquired by Grantor (hereinafter called the “Equipment”), including,
but without limiting the generality of the foregoing, any and all furniture,
furnishings, partitions, carpeting, drapes, dynamos, screens, awnings, storm windows,
floor coverings, stoves, refrigerators, dishwashers, disposal units, motors, engines,
boilers, furnaces, pipes, plumbing, elevators, cleaning, call and sprinkler systems,
fire extinguishing apparatus and equipment, water tanks, maintenance equipment, and all
heating, lighting, ventilating, refrigerating, incinerating, air-conditioning and
air-cooling equipment, gas and electric machinery and all of the right, title and
interest of Grantor in and to any Equipment which may be subject to any title retention
or security agreement superior in lien to the lien of this Deed of Trust and all
additions, accessions, parts, fittings, accessories, replacements, substitutions,
betterments, repairs and proceeds of all of the foregoing, all of which shall be
construed as fixtures and will conclusively be construed, intended and presumed to be a
part of the Land. It is understood and agreed that all Equipment, whether or not
permanently affixed to the Land and the buildings and improvements thereon, shall for
the purpose of this Deed of Trust be deemed conclusively to be conveyed hereby and, as
to all such Equipment, whether personal property or fixtures, or both, a security
interest is hereby granted by Grantor and hereby
attached thereto, all as provided by the Texas Business and Commerce Code (the
“Code”).

Together with all and singular other tenements, hereditaments and appurtenances belonging to the
aforesaid properties, or any part thereof with the reversions, remainders and benefits and all
other revenues, rents, earnings, issues and income and profits arising or to arise out of or to be
received or had of and from the properties hereby mortgaged or intended so to be or any part
thereof and all the estate, right, title, interest and claims, at law or in equity which Grantor
now or may hereafter acquire or be or become entitled to in and to the aforesaid properties and any

[DEED OF TRUST]

Loan No. 18906

Page 3 of 44

 

and every part thereof. The “Mortgaged Premises” are hereby declared to be subject to the
lien of this Deed of Trust as security for the payment of the aforementioned indebtedness.

     Some of the items which constitute the Mortgaged Premises are or are to become “fixtures” (as
defined in the Code) and, as provided under Chapter 9 of the Code, this Deed of Trust upon being
filed for record in the real property records of Travis County, Texas, shall also operate as a
“fixture filing” and financing statement with respect to such items.

     SUBJECT TO (i) liens for ad valorem taxes and special assessments or installments thereof not
now delinquent; (ii) building and zoning ordinances and building and use restrictions; (iii)
documents of record on the date hereof; and (iv) such minor defects, irregularities, encumbrances,
easements, and rights of way as normally exist with respect to property similar in character to the
Mortgaged Premises which do not individually or in the aggregate materially detract from the value
of the Mortgaged Premises or impair the use thereof for the purpose intended (all of the foregoing
being herein referred to as “Permitted Encumbrances”).

     PROVIDED, HOWEVER, that if Grantor, its successors or assigns shall well and truly pay, or
cause to be paid, the principal of the Note, and the interest due or to become due thereon, at the
times and in the manner mentioned in the Note according to the true intent and meaning thereof, and
shall well and truly keep, perform and observe all the covenants and conditions pursuant to the
terms of this Deed of Trust and the Assignment of Leases, Rents and Income dated as of the date
hereof (herein called the “Assignment”) to be kept, performed and observed by it, and shall pay to
Beneficiary all sums of money due or to become due to it in accordance with the terms and
provisions hereof, then this Deed of Trust and the rights hereby granted shall cease, terminate and
be void and Trustee or Beneficiary, as appropriate, shall execute a document in recordable form
evidencing the satisfaction of this Deed of Trust; otherwise, this Deed of Trust shall be and
remain in full force and effect. This Deed of Trust, the Note, the Assignment, and the other
documents and instruments evidencing or securing the loan (the “Loan”) evidenced by the Note
(excluding the certain Environmental Indemnification Agreement dated this same date) are referred
to herein collectively as the “Loan Documents.”

     Grantor covenants and agrees with the Beneficiary as follows:

ARTICLE ONE

GENERAL COVENANTS

     Section 1-1. Payment of Indebtedness. Grantor shall pay when due all amounts at any
time owing under the Note secured by this Deed of Trust and shall perform and observe each and
every term, covenant and condition contained herein and in the Note.

     Section 1-2. Title and Instruments of Further Assurance. Grantor represents,
warrants, covenants and agrees that it is the lawful owner of the Mortgaged Premises, that it has
good and

[DEED OF TRUST]

Loan No. 18906

Page 4 of 44

 

indefeasible title to the Land and good and marketable title to the Equipment, and that
it has good right and lawful authority to mortgage, assign and pledge the same as provided herein;
that it has not made, done, executed or suffered, and will not make, do, execute or suffer, any act
or thing whereby its estate or interest in and title to the Mortgaged Premises or any part thereof
shall or may be impaired or changed or encumbered in any manner whatsoever except by Permitted
Encumbrances; that it does warrant and will defend, subject however, to the Permitted Encumbrances,
the title to the Mortgaged Premises against all claims and demands whatsoever not specifically
excepted herein; and that it will do, execute, acknowledge and deliver all and every further act,
deed, conveyance, transfer and assurance necessary or proper for the carrying out more effectively
of the purpose of this Deed of Trust and, without limiting the foregoing, for conveying,
mortgaging, assigning and confirming unto Beneficiary all of the Mortgaged Premises, or property
intended so to be, whether now owned or hereafter acquired, including without limitation the
preparation, execution and filing of any documents, such as control agreements, financing
statements and continuation statements, deemed advisable by Beneficiary for maintaining its lien on
any property included in the Mortgaged Premises.

     Section 1-3. First Lien. The lien created by this Deed of Trust is a first and prior
lien on the Mortgaged Premises and Grantor will keep the Mortgaged Premises and the rights,
privileges and appurtenances thereto free from all lien claims of every kind whether superior,
equal, or inferior to the lien of this Deed of Trust subject only to Permitted Encumbrances and if
any such lien be filed, Grantor, within forty-five (45) days after such filing shall cause same to
be discharged by payment, bonding or otherwise to the satisfaction of Beneficiary. Grantor further
agrees to protect and defend the title and possession of the Mortgaged Premises so that this Deed
of Trust shall be and remain a first lien thereon until said debt be fully paid, or if foreclosure
shall be had hereunder so that the purchaser at said sale shall acquire good title in fee simple to
the Mortgaged Premises free and clear of all liens and encumbrances.

     Section 1-4. Due on Sale or Encumbrance. In the event Grantor directly or indirectly
sells, conveys, transfers, disposes of, or further encumbers all or any part of the Mortgaged
Premises or any interest therein, or in the event any ownership interest in Grantor is
directly or indirectly transferred or encumbered, or in the event Grantor or any owner of Grantor
agrees so to do, in any case without the written consent of Beneficiary being first obtained (which
consent Beneficiary may withhold in its sole and absolute discretion), then, at the sole option of
Beneficiary, Beneficiary may accelerate the Loan and declare the principal of and the accrued
interest of the Note, and including all sums advanced hereunder with interest, to be forthwith due
and payable, and thereupon the Note, including both principal and all interest accrued thereon, and
including all sums advanced hereunder and interest thereon, shall be and become immediately due and
payable without presentment, demand or further notice of any kind. Without limiting the generality
of the foregoing, a merger, consolidation, reorganization, entity conversion or other restructuring
or transfer by operation of law, whereunder the Grantor or, in the case of an ownership interest,
the holder of an ownership interest in Grantor, is not the surviving entity as such entity exists
on the date hereof, shall be deemed to be a transfer of the Mortgaged Premises or of an ownership
interest in Grantor. Consent as to any one transaction shall not be deemed to be a waiver of the
right to require consent to future or successive

[DEED OF TRUST]

Loan No. 18906

Page 5 of 44

 

transactions. Without limiting the generality of the foregoing, there shall be no
subordinate financing relating to the Mortgaged Premises.

     Notwithstanding the foregoing, and provided no Event of Default (as hereinafter defined) has
occurred and is continuing beyond any applicable notice and cure period, with the prior written
consent of Beneficiary, which it may withhold in its sole and absolute discretion, one transfer or
conveyance of the Mortgaged Premises or interest in Grantor to a transferee approved by Beneficiary
in its sole and absolute discretion shall be permitted upon (a) execution by the transferee of an
assumption agreement satisfactory to Beneficiary; (b) receipt by Beneficiary of a non-refundable
fee equal to one percent (1%) of the outstanding amount of the Note at the time of such sale and
assumption; (c) receipt by Beneficiary of an endorsement to Beneficiary’s title policy, in form and
substance acceptable to Beneficiary; and (d) receipt by Beneficiary of opinions of counsel, and
authorization documents of Grantor and the transferee, satisfactory to Beneficiary. Further,
Beneficiary, in its sole and absolute discretion, may require individuals specifically named by
Beneficiary to deliver to Beneficiary an Environmental Indemnification Agreement on Beneficiary’s
standard form. The rights granted to Grantor in this paragraph are personal to the original
Grantor, shall be extinguished after the exercise thereof, and shall not inure to the benefit of
any transferee. Any such transfer and assumption will not release the original Grantor or any
guarantor from any liability to Beneficiary without the written consent of Beneficiary, which
consent may be given or withheld in Beneficiary’s sole and absolute discretion and may be
conditioned upon the execution of new guaranties from the principals of the transferee, execution
by the principals of the transferee of Beneficiary’s standard Environmental Indemnification
Agreement, and such other requirements as Beneficiary may deem appropriate in its discretion.

     Further, notwithstanding the foregoing, either of the following may occur without the consent
of Beneficiary: (a) transfers of shares in Cole Credit Property Trust II, Inc., Cole Credit
Property Trust III, Inc. or any other Cole-sponsored entity whose ownership interests are bought,
sold and redeemed through U.S. broker-dealers, and (b) transfers of ownership interests in any
Restricted Party (as defined below) and ownership interests in any member, partner or shareholder
of any Restricted Party to any affiliate or subsidiary of a Restricted Party, provided that, at all
times, Christopher H. Cole, Cole Holdings Corporation, Cole Credit Property Trust II, Inc. or Cole
Credit Property Trust III, Inc. continues to “control” the Restricted Party, where the term
“control” means the power to direct the management and policies of the Restricted Party. For
purposes of this paragraph, “Restricted Party” means Borrower and/or a guarantor of any of
Borrower’s obligations under the Note.

     In all events, Beneficiary shall be notified in advance of any proposed transfer, and Grantor
shall pay, or reimburse Beneficiary for, all costs and expenses associated with any proposed
transfer of the Mortgaged Premises or interests in Grantor that requires the consent of
Beneficiary, whether or not consummated, including legal fees and costs.

     Section 1-5. Covenants, Representations and Warranties of Grantor. Grantor hereby
covenants, represents and warrants to Beneficiary that:

[DEED OF TRUST]

Loan No. 18906

Page 6 of 44

 

	 	(a)	 	Grantor (i) is a limited liability company duly organized, validly existing and in
good standing under the laws of Delaware; (ii) has the power and authority to own its
properties and to carry on its business as now being conducted; (iii) is qualified to
do business in Texas; and (iv) is in compliance with all laws, regulations, ordinances,
and orders of public authorities applicable to it.
	 
	 	(b)	 	The execution, delivery and performance by Grantor of this Deed of Trust, the
Note, the Assignment and the other Loan Documents, and the borrowing evidenced by the
Note: (i) are within the powers of Grantor; (ii) have been duly authorized by all
requisite action; (iii) have received all necessary governmental approval; and (iv)
will not violate any provision of law, any order of any court or other agency of
government, or the organizational or chartering documents and agreements of Grantor.
	 
	 	(c)	 	This Deed of Trust, the Note, the Assignment and other Loan Documents
constitute the legal, valid and binding obligations of Grantor and other obligors named
therein, if any, enforceable in accordance with their respective terms.
	 
	 	(d)	 	Neither the execution and delivery of this Deed of Trust, the Note or the
Assignment, the consummation of the transactions contemplated hereby, or thereby, nor
the fulfillment of or compliance with the terms and conditions of this Deed of Trust,
the Note or the Assignment, conflicts with or results in a breach of
any of the terms, conditions or provisions of any restriction or any agreement or
instrument to which Grantor is now a party or by which it is bound.
	 
	 	(e)	 	None of Grantor, any affiliate of Grantor, or any person owning an interest in
Grantor or any such affiliate, is or will be an entity or person (i) listed in the
Annex to, or is otherwise subject to the provisions of, Executive Order 13224 issued on
September 23, 2001 (the “Executive Order”), (ii) included on the most current list of
“Specially Designated Nationals and Blocked Persons” published by the United States
Treasury Department’s Office of Foreign Assets Control (“OFAC”) (which list may be
published from time to time in various media including, but not limited to, the OFAC
website page, http:www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf), (iii) which
or who commits, threatens to commit or supports “terrorism,” as that term is defined in
the Executive Order, or (iv) affiliated with any entity or person described in clauses
(i), (ii) or (iii) above (any and all parties or persons described in clauses
(i) through (iv) are herein referred to individually and collectively as a “Prohibited
Person”). Grantor covenants and agrees that none of Grantor, any affiliate of Grantor,
or any person owning an interest in Grantor or any such affiliate, will (i) conduct any
business, or engage in any transaction or dealing, with any Prohibited Person,
including, but not limited to the making or receiving of any contribution of funds,
goods, or services, to or for the benefit of a Prohibited Person, or (ii) engage in or
conspire to engage in any transaction that evades or avoids, or has the purpose of
evading or avoiding, or attempts to violate, any of

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	 	 	 	the prohibitions set forth in the Executive Order. Grantor further covenants and
agrees to deliver (from time to time) to Beneficiary any such certification or other
evidence as may be requested by Beneficiary in its sole and absolute discretion,
confirming that (i) Grantor is not a Prohibited Person and (ii) Grantor has not engaged
in any business, transaction or dealings with a Prohibited Person, including, but not
limited to, the making or receiving of any contribution of funds, goods, or services,
to or for the benefit of a Prohibited Person.
	 
	 	(f)	 	During the time the Note remains outstanding, the Grantor (i) will not engage
in any business unrelated to the Mortgaged Premises, (ii) will not have any assets
other than those related to the Mortgaged Premises, (iii) will not engage in, seek or
consent to any dissolution, winding up, liquidation, consolidation or merger, and,
except as otherwise expressly permitted by the Loan Documents, will not engage in, seek
or consent to any asset sale, transfer of membership interests, or amendment of its
articles of organization or operating agreement, (iv) will not fail to correct any
known misunderstanding regarding the separate identity of Grantor, (v) will not with
respect to itself or to any other entity in which it has a direct or indirect legal or
beneficial ownership interest (A) file a bankruptcy, insolvency or
reorganization petition or otherwise institute insolvency proceedings or otherwise
seek any relief under any laws relating to the relief from debts or the protection
of debtors generally; (B) seek or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian or any similar official for
such entity or all or any portion of such entity’s properties; (C) make any
assignment for the benefit of such entity’s creditors; or (D) take any action that
might cause such entity to become insolvent, (vi) will maintain its accounts, books
and records separate from any other person or entity, (vii) will maintain its books,
records, resolutions and agreements as official records, (viii) has not commingled
and will not commingle its funds or assets with those of any other person or entity,
(ix) has held and will hold its assets in its own name, (x) will conduct its
business in its name, (xi) will maintain its financial statements, accounting
records and other entity documents separate from any other person or entity, (xii)
will pay its own liabilities out of its own funds and assets, (xiii) will observe
all entity formalities, (xiv) has maintained and, except as otherwise expressly
permitted or required by the Loan Documents, will maintain an arms-length
relationship with its affiliates, (xv) will have no indebtedness other than as
evidenced by the Loan Documents and commercially reasonable unsecured trade payables
in the ordinary course of business relating to the ownership and operation of the
Mortgaged Premises that are paid before becoming delinquent, (xvi) except as
expressly permitted or required by the Loan Documents, will not assume or guarantee
or become obligated for the debts of any other person or entity or hold out its
credit as being available to satisfy the obligations of any other person or entity,
except as evidenced by the Loan Documents, (xvii) will not acquire obligations or
securities of its owners (members, partners, shareholders), (xviii) will allocate
fairly and reasonably shared expenses, including, without limitation, shared office
space and use separate stationery, invoices and checks, (xix) will not pledge its
assets for the

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benefit of any other person or entity, (xx) will hold itself out and identify itself as a separate
and distinct entity under its own name and not as a division or part of any other
person or entity, (xxi) will not make loans to any person or entity, (xxii) will not
identify its owners (members, partners, shareholders) or any affiliates of any of them
as a division or part of it, (xxiii) except as otherwise expressly permitted or
required by the Loan Documents, will not enter into or be a party to, any transaction
with its owners (members, partners, shareholders) or its affiliates except in the
ordinary course of its business and on terms which are intrinsically
fair and are no less favorable to it than would be obtained in a comparable
arms-length transaction with an unrelated third party, (xxiv) will pay the salaries
of its own employees from its own funds, (xxv) will maintain adequate capital in
light of its contemplated business operations, and (xxvi) shall continue (and not
dissolve) for so long as a solvent managing member, partner or shareholder exists.

ARTICLE TWO

MAINTENANCE, OBLIGATIONS UNDER LEASES,

TAXES AND LIENS, INSURANCE AND FINANCIAL REPORTS

     Section 2-1. Maintenance. Grantor will, or will cause tenants of the Mortgaged
Premises (“Tenants”) to, cause the Mortgaged Premises and every part thereof to be maintained,
preserved and kept in safe and good repair, working order and condition, will abstain from and not
permit the commission of waste in or about the Mortgaged Premises, and will comply with all laws
and regulations of any governmental authority with reference to the Mortgaged Premises and the
manner of using or operating the same, and with all restrictive covenants, if any, affecting the
title to the Mortgaged Premises, or any part thereof. Grantor also will, or will cause Tenants to,
from time to time make all necessary and proper repairs, renewals, replacements, additions and
betterments thereto, so that the value and efficient use thereof shall be fully preserved and
maintained and so as to comply with all laws and regulations as aforesaid. Grantor will not
otherwise make any material modifications to the Mortgaged Premises without the written consent of
Beneficiary; provided, however, that Beneficiary’s consent will not be required for any
modification to the Mortgaged Premises that may be completed by Tenants under the terms of the
Leases (as hereinafter defined) without the consent of Grantor.

     If the Beneficiary has reasonable cause to believe that the Mortgaged Premises is not in
compliance with applicable laws and regulations (including environmental, health and safety laws
and regulations), at the request of Beneficiary, from time to time, Grantor, at its sole cost and
expense will furnish Beneficiary with engineering studies and soil tests with respect to the
Mortgaged Premises, the form, substance and results of which shall be satisfactory and certified to
Beneficiary. Beneficiary agrees that Grantor shall not be required to pay the costs associated
with such studies and tests more than once in any Loan Year (as defined in the Note). If any such
engineering studies or soil tests indicate any violation, of environmental, health, safety or
similar laws or regulations, then Grantor, at its sole cost and expense, will promptly take

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whatever corrective action is necessary to assure the Mortgaged Premises is in full compliance with
law.

     Section 2-2. Lease Obligations. Grantor has, concurrently herewith, executed
and delivered to the Beneficiary the Assignment, wherein and whereby, among other things, Grantor
has assigned to the Beneficiary all of Grantor’s right, title and interest to the rents, issues and
profits and any and all leases (“Leases”) and the rights of management of the Mortgaged

Premises, all as therein more specifically set forth, which Assignment is hereby incorporated
herein by reference as fully and with the same effect as if set forth herein at length. Grantor
agrees that it will duly perform and observe all of the terms and provisions on the landlord’s part
to be performed and observed under any and all leases of the Mortgaged Premises and that it will
refrain from any action or inaction which would result in the termination by the tenants thereunder
of any such leases or in the diminution of the value thereof or of the rents, issues, profits and
revenues thereunder. Nothing herein contained shall be deemed to obligate the Beneficiary to
perform or discharge any obligation, duty or liability of landlord under any lease of the Mortgaged
Premises, and GRANTOR SHALL AND DOES HEREBY AGREE TO INDEMNIFY AND HOLD THE BENEFICIARY HARMLESS
FROM ANY AND ALL LIABILITY, LOSS OR DAMAGE WHICH THE BENEFICIARY MAY OR MIGHT INCUR UNDER ANY LEASE
OF THE MORTGAGED PREMISES OR BY REASON OF THE ASSIGNMENT (INCLUDING ANY LIABILITY ARISING OUT OF
THE NEGLIGENCE OF BENEFICIARY OR ANY STRICT LIABILITY) EXCLUDING BENEFICIARY’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT; and any and all such liability, loss or damage incurred by the Beneficiary,
together with the costs and expenses, including reasonable attorneys’ fees, incurred by the
Beneficiary in the defense of any claims or demands therefor (whether successful or not), shall be
so much additional indebtedness hereby secured, and Grantor shall reimburse the Beneficiary
therefor on demand, together with interest at a rate equal to twelve percent (12%) per annum or, if
less, the Maximum Legal Rate of Interest (as defined below), until paid.

     Grantor shall not lease or sublease any portion of the Mortgaged Premises without the prior
written consent of the Beneficiary, nor will Grantor permit or enter into any sublease, assignment,
modification, amendment or termination of any prior approved lease or sublease without the prior
written consent of Beneficiary; provided, however, that Beneficiary’s consent will not be required
for any assignments, subleases or other transfers that may be completed by Tenants under the terms
of the Leases (as hereinafter defined) without the consent of Grantor. Notwithstanding the
foregoing, with respect to any Lease that demises less than 19,000 square feet of the Mortgaged
Premises, Grantor may take any of the actions described in this Section 2-2 without Beneficiary’s
consent.

     Section 2-3. Taxes, Other Governmental Charges, Liens and Utility Charges. Grantor
shall, before any penalty attaches thereto, pay and discharge or cause to be paid and discharged
all taxes, assessments, utility charges and other governmental charges imposed upon or against the
Mortgaged Premises or upon or against the Note and the indebtedness secured hereby, and will not
suffer to exist any mechanic’s, statutory or other lien on the Mortgaged Premises or any part
thereof unless consented to by Beneficiary in writing. If Beneficiary is required by

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legislative enactment or judicial decision to pay any such tax, assessment or charge, then at the option of the
Beneficiary, the Note and any accrued interest thereon together with any additions to the mortgage
debt shall be and become due and payable at the election of Beneficiary upon notice of such
election to Grantor; provided, however, said election shall be unavailing and this Deed of Trust
and the Note shall be and remain in effect as though said law had not been enacted or said decision
had not been rendered if, notwithstanding such law or decision, Grantor lawfully pays such tax,
assessments or charge to or for Beneficiary. Copies of paid tax and assessment receipts shall be
furnished to Beneficiary not less than ten (10) days prior to the delinquent dates.

     Nothing in this Section shall require the payment or discharge of any obligation imposed
upon Grantor by this Section so long as Grantor, upon first notifying Beneficiary of its intent to
do so, shall in good faith and at its own expense contest the same or the validity thereof by
appropriate legal proceeding which permit the items contested to remain undischarged and
unsatisfied during the period of such contest and any appeal therefrom, unless Beneficiary shall
notify Grantor that, in its opinion, by nonpayment of any such items, the lien of the Deed of Trust
as to any part of the Mortgaged Premises will be materially endangered or the Mortgaged Premises,
or any part thereof, will be subject to loss or forfeiture in which event such taxes, assessments
or charges shall be paid promptly.

     Section 2-4. Insurance.

     (a) Grantor shall procure and maintain continuously in effect with respect to the Mortgaged
Premises policies of insurance against such risks (excluding terrorism) and in such amounts as are
customary for a prudent owner of property comparable to that comprising the Mortgaged Premises.
Irrespective of, and without limiting the generality of the foregoing provision, Grantor shall
specifically maintain the following insurance coverages:

     (i) Direct damage insurance providing “special form” or “other perils”
coverage, including but not limited to coverage for the following risks of loss:

	 	(A)	 	Fire
	 
	 	(B)	 	Extended Coverage Perils
	 
	 	(C)	 	Vandalism and Malicious Mischief

on a replacement cost basis in an amount equal to the full insurable value thereof
(“full insurable value” shall include the actual replacement cost of all buildings
and improvements and the contents therein, without deduction for depreciation,
architectural and engineering fees).

The policies required by this Paragraph (i) shall be either subject to no
coinsurance clause or contain an agreed amount clause and may include a
deductibility provision not exceeding Ten Thousand Dollars ($10,000).

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     (ii) Commercial general liability insurance against liability for injuries
to or death of any person or damage to or loss of property arising out of or in any
way relating to the condition of the Mortgaged Premises or any part thereof, in
the maximum amounts required by any of the leases of the Mortgaged Premises, but in
no event less than a minimum annual aggregate limit of Two Million and No/100
Dollars ($2,000,000.00) provided that the requirements of this paragraph (ii) with
respect to the amount of insurance may be satisfied by an excess coverage policy.

     (iii) Business interruption or loss of rental income insurance in an amount
equal to not less than the gross revenue from the Mortgaged Premises for twelve (12)
months from the operation and rental of all improvements now or hereafter forming
part of the Mortgaged Premises, based upon one hundred percent (100%) of the
then-existing occupancy of such improvements, as measured on (A) the date hereof for
the initial policy and (B) the effective date of renewals of such policy and/or any
replacement policy, naming Beneficiary in a standard mortgagee loss payable clause
thereunder.

     (iv) Insurance against such other casualties and contingencies as Beneficiary
may from time to time require (but excluding terrorism), if such insurance against
such other casualties and contingencies is available, all in such manner and for
such amounts as may be reasonably satisfactory to Beneficiary.

     (b) All insurance provided for in Subsection (a) shall be effective under a valid and
enforceable policy or policies issued by an insurer of recognized responsibility approved by
Beneficiary (an insurer with a Best Class rating of at least A-/VIII shall be deemed approved).

     (c) All policies of insurance required in Subsections (a)(i) and (iii) shall be written in the
names of Grantor and Beneficiary as their respective interests may appear. These policies shall
provide that the proceeds of such insurance shall be payable to Beneficiary pursuant to a standard
mortgagee clause to be attached to each such policy.

     (d) Grantor shall deposit with Beneficiary policies evidencing all such insurance, or a
certificate or certificates of the respective insurers stating that such insurance is in force and
effect. Within thirty (30) days after the date the premiums on each such policy shall become due
and payable, Beneficiary shall be furnished with proof of such payment reasonably satisfactory to
it. Each policy of insurance herein required shall contain a provision that the insurer shall not
cancel, refuse to renew or materially modify it without giving written notice to Beneficiary at
least thirty (30) days before the cancellation, non-renewal or modification becomes effective.
Within ten (10) days after the scheduled expiration date of any policy of insurance herein
required, Grantor shall furnish Beneficiary with evidence satisfactory to Beneficiary that the
policy has been renewed or replaced by another policy conforming to the provisions of this Article
or that there is no necessity therefor under the terms hereof. In lieu of separate policies,
Grantor may maintain blanket policies having the coverage required herein, in which event it

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shall deposit with Beneficiary a certificate or certificates of the respective insurance as to the amount
of coverage in force on the Mortgaged Premises.

     TEXAS FINANCE CODE §307.052 COLLATERAL PROTECTION INSURANCE NOTICE:

     (A) GRANTOR IS REQUIRED TO: (i) KEEP THE MORTGAGED PREMISES INSURED AGAINST DAMAGE
IN THE AMOUNT BENEFICIARY SPECIFIES, (ii) PURCHASE THE INSURANCE FROM AN INSURER THAT IS
AUTHORIZED TO DO BUSINESS IN THE STATE OF TEXAS OR AN ELIGIBLE SURPLUS LINES INSURER; AND
(iii) NAME THE BENEFICIARY AS THE PERSON TO BE PAID UNDER THE POLICY IN THE EVENT OF A
LOSS;

     (B) GRANTOR MUST, IF REQUIRED BY BENEFICIARY, DELIVER TO BENEFICIARY A COPY OF THE
POLICY AND PROOF OF THE PAYMENT OF PREMIUMS; AND

     (C) IF GRANTOR FAILS TO MEET ANY REQUIREMENT LISTED IN PARAGRAPH (A) OR (B) FOR A
PERIOD OF TEN (10) DAYS FOLLOWING NOTICE, BENEFICIARY MAY OBTAIN COLLATERAL PROTECTION
INSURANCE ON BEHALF OF GRANTOR AT GRANTOR’S EXPENSE.

     Section 2-5. Advances. If Grantor shall fail to comply with any of the terms,
covenants and conditions herein with respect to the procuring of insurance, the payment of taxes,
assessments and other charges, the keeping of the Mortgaged Premises in repair, or any other term,
covenant or condition herein contained, Beneficiary may make advances to perform the same and,
where necessary, enter the Mortgaged Premises for the purpose of performing any such term, covenant
or condition, and without limitation of the foregoing, Beneficiary may procure and place insurance
coverage in accordance with the requirements of this Section. Grantor agrees to repay all sums so
advanced upon demand, with interest at a rate equal to twelve percent (12%) per annum or, if less,
the Maximum Legal Rate of Interest, until paid. All sums so advanced, with interest, shall be
secured hereby in priority to the indebtedness evidenced by the Note, but no such advance shall be
deemed to relieve Grantor from any default hereunder. After making any such advance, payments made
pursuant to the Note shall be first applied toward reimbursement for any such advance and interest
thereon, prior to the application toward accrued interest and principal payments due pursuant to
the Note.

     Section 2-6. Financial Information. Grantor shall furnish Beneficiary (a) within
one hundred twenty (120) days after the close of each fiscal year of the operation of the Mortgaged
Premises, an annual operating statement of Grantor in form and detail satisfactory to Beneficiary,
prepared in conformity with generally accepted accounting principles applied on a basis consistent
with that of the preceding fiscal year and signed by a Certified Public Accountant acceptable to
Beneficiary or supported by affidavit of a principal in the ownership of the Mortgaged Premises;
and (b) from time to time such other information in the possession of Grantor or subject to its
control, in such detail as Beneficiary may require, as will enable

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Beneficiary to determine whether
Grantor is in compliance with the provisions of the Note and of this Deed of Trust.

     Section 2-7. Use of Mortgaged Premises. Grantor shall furnish and keep in force
a Certificate of Occupancy, or its equivalent, and comply, or cause Tenants to comply, in all
material respects with all restrictions affecting the Mortgaged Premises and with all laws,
ordinances, acts, rules, regulations and orders of any legislative, executive, administrative or
judicial body, commission or officer, (whether Federal, state or local) exercising any power of
regulation or supervision over Grantor, or any part of the Mortgaged Premises, whether the same be
directed to the erection, repair, manner of use or structural alteration of buildings or otherwise.
Grantor shall not initiate, join in, acquiesce in, or consent to any change in any private
restrictive covenant, or other public or private restriction, if such change materially limits or
defines the uses which may be made of the Mortgaged Premises or any part thereof, nor shall Grantor
initiate, join in, acquiesce in, or consent to any zoning change or zoning matter affecting the
Mortgaged Premises. If under applicable zoning provisions the use of all or any portion of the
Mortgaged Premises is or shall become a nonconforming use, Grantor will not cause or permit such
nonconforming use to be discontinued or abandoned without the express written consent of
Beneficiary. Grantor shall not permit or suffer to occur any waste on or to the Mortgaged Premises
or to any portion thereof and shall not take any steps whatsoever to convert the Mortgaged
Premises, or any portion thereof, to a condominium or cooperative form of management. Grantor will
not install or permit to be installed on the Mortgaged Premises any underground storage tank.

     Section 2-8. Escrows. Grantor shall pay to Beneficiary, together with and in
addition to the monthly payments of principal and interest provided for in the Note (which shall be
by Automated Clearing House if provided for in the Note for installment payments thereunder), an
amount reasonably estimated by Beneficiary to be sufficient to pay one twelfth (1/12) of the
estimated annual real estate taxes (including other charges against the Mortgaged Premises by
governmental or quasi-governmental bodies but excluding special assessments which are to be paid as
the same become due and payable) and one-twelfth (1/12) of the annual premiums on insurance
required in Section 2-4 hereof to be held by Beneficiary and used to pay said taxes and insurance
premiums when same shall fall due; provided that upon the occurrence of an Event of Default that
continues beyond applicable notice and cure period, Beneficiary may apply such funds as Beneficiary
shall deem appropriate. If at the time that payments are to be made, the funds set aside for
payment of either taxes or insurance premiums are insufficient, Grantor shall upon demand pay such
additional sums as the Beneficiary shall determine to be necessary to cover the required payment.
Beneficiary need not segregate such funds. No interest shall be payable to Grantor upon any such
payments.

     Notwithstanding the foregoing, Beneficiary waives the collection of escrow deposits for
insurance and real estate taxes for so long as all of the following conditions are complied with:

     (a) no Event of Default (as defined in Section 4-1) has occurred and is continuing beyond any
applicable notice and cure period;

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     (b) the ownership and management of the Mortgaged Premises remain as constituted as of
the date hereof, subject to the rights of Grantor under the penultimate grammatical paragraph of
Section 1-4 above;

     (c) Beneficiary has received an ACORD 28 Evidence of Commercial Property Insurance (2003 form)
or an ACORD 27 Evidence of Property Insurance (3/93 form) and an ACORD 25 Certificate of Liability
Insurance (covering all types of insurance required by Beneficiary) before the expiration date of
insurance policies then in force;

     (d) Beneficiary receives satisfactory evidence of payment of insurance premiums before the
expiration date of the policies then in force; and

     (e) Beneficiary receives satisfactory evidence of payment of real estate taxes before the same
are delinquent.

     Section 2-9. Environmental Matters.

     (a) Definitions. As used herein, the following terms will have the meaning set forth
below:

     (i) Environmental Law means and includes any federal, state or local
law, statute, regulation or ordinance pertaining to health, industrial hygiene or
the environmental or ecological conditions on, under or about the Mortgaged
Premises, including without limitation each of the following (and their respective
successor provisions): the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, 42 U.S.C. sections 9601 et seq.;
the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. sections
6901 et seq.; the Toxic Substance Control Act, as amended, 15 U.S.C.
sections 2601 et seq.; the Clean Air Act, as amended; 42 U.S.C.
sections 1857 et seq.; the Federal Water Pollution Control Act, as
amended, 33 U.S.C. sections 1251 et seq.; the Federal Hazardous
Materials Transportation Act, 49 U.S.C. sections 5101 et seq.; and
the rules, regulations and ordinances of the U.S. Environmental Protection Agency
and of all other agencies, boards, commissions and other governmental bodies and
officers having jurisdiction over the Mortgaged Premises or the use or operation of
the Mortgaged Premises.

     (ii) Hazardous Substance means and includes: (A) those substances
included within the definitions of “hazardous substances,” “hazardous materials,”
“toxic substances,” “pollutants,” “hazardous waste,” or “solid waste” in any
Environmental Law; (B) those substances listed in the U.S. Department of
Transportation Table or amendments thereto (49 C.F.R. 172.101) or by the U.S.
Environmental Protection Agency (or any successor agency) as hazardous substances
(40 C.F.R. Part 302 and any amendments thereto); (C) those other
substances, materials and wastes which are or become regulated under any
applicable federal, state or local law, regulation or ordinance or by any federal,

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state or local governmental agency, board, commission or other governmental body, or
which are or become classified as hazardous or toxic by any such law, regulation or
ordinance; and (D) any material, waste or substance which is any of the following:
(1) asbestos; (2) polychlorinated biphenyl; (3) designated or listed as a “hazardous
substance” pursuant to sections 307 or 311 of the Clean Water Act (33 U.S.C.
sections 1251 et seq.); (4) explosive; (5) radioactive; (6) a
petroleum product; (7) infectious waste; or (8) mold or mycotoxins. The term
“Permitted Hazardous Substance” means commercially sold products otherwise within
the definition of the term “Hazardous Substance,” but (a) that are used or disposed
of by Grantor or used or sold by tenants of the Mortgaged Premises in the ordinary
course of their respective businesses, (b) the presence of which product is not
prohibited by applicable Environmental Law, and (c) the use and disposal of which
are in all respects in accordance with applicable Environmental Law.

     (iii) Enforcement or Remedial Action means any action taken by any
person or entity in an attempt or asserted attempt to enforce, to achieve compliance
with, or to collect or impose assessments, penalties, fines, or other sanctions
provided by, any Environmental Law.

     (iv) Environmental Liability means and includes any claim, demand,
obligation, cause of action, accusation, allegation, order, violation, damage
(including consequential damage), injury, judgment, assessment, penalty, fine, cost
of Enforcement or Remedial Action, or any other cost or expense whatsoever,
including actual, reasonable attorneys’ fees and disbursements, resulting from or
arising out of the violation or alleged violation of any Environmental Law, any
Enforcement or Remedial Action, or any alleged exposure of any person or property to
any Hazardous Substance.

     (v) Release means any release, spill, discharge, leak, disposal or
emission.

     (b) Representations, Warranties and Covenants. Grantor represents, warrants,
covenants and agrees as follows:

     (i) Except as may be disclosed in the Phase I (as hereinafter defined), neither
Grantor nor the Mortgaged Premises or, to Grantor’s knowledge, any occupant thereof
is in violation of any Environmental Law, Grantor has not received notice from any
governmental authority regarding any existing, pending or threatened investigation
or inquiry pertaining to any Environmental Law. Grantor shall not cause or permit
the Mortgaged Premises to be in violation of, or
do anything which would subject the Mortgaged Premises to any remedial
obligations under, any Environmental Law, and shall promptly notify Beneficiary in
writing of any existing, pending or threatened investigation or inquiry by any
governmental authority in connection with any Environmental Law. In addition,

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Grantor shall provide Beneficiary with copies of any and all material written
communications with any governmental authority in connection with any Environmental
Law, concurrently with Grantor’s giving or within a commercially reasonable time
after receiving of same. As used herein, the “Phase I” means that certain Phase I
Environmental Site Assessment dated November 18, 2009 prepared by IVI Due Diligence
Services, Inc. for the Mortgaged Premises, which has been delivered to Beneficiary.

     (ii) To Grantor’s knowledge, and except as may be disclosed in the Phase
I, there are no underground storage tanks, radon, asbestos materials,
polychlorinated biphenyls or urea formaldehyde insulation present at or installed in
the Mortgaged Premises. Grantor covenants and agrees that if any such materials are
found to be present at the Mortgaged Premises, Grantor shall remove or remediate the
same promptly upon discovery at its sole cost and expense and in accordance with
Environmental Law.

     (iii) Grantor has completed the Phase I to determine that there has been no
Release of any Hazardous Substance at, upon, under or within the Mortgaged Premises.
The use which Grantor or, to Grantor’s knowledge, any other occupant of the
Mortgaged Premises makes or intends to make of the Mortgaged Premises is not
expected to result in a Release of any Hazardous Substance on or to the Mortgaged
Premises (other than a Permitted Hazardous Substance). During the term of this Deed
of Trust, if Grantor has reason to believe that a Release of Hazardous Substance
(other than a Permitted Hazardous Substance) has occurred on the Mortgaged Premises,
Grantor shall take all steps necessary to determine whether there has been a Release
of any Hazardous Substance (other than a Permitted Hazardous Substance) on or to the
Mortgaged Premises and if Grantor finds a Release has occurred, Grantor shall remove
or remediate the same promptly upon discovery at its sole cost and expense.

     (iv) Based on the Phase I and to the knowledge of Grantor, the Mortgaged
Premises has never been used by the present or to Grantor’s knowledge by previous
owners and/or operators and it will not be used in the future to refine, produce,
store, handle, transfer, process, transport, generate, manufacture, heat, treat,
recycle or dispose of Hazardous Substances (other than a Permitted Hazardous
Substance).

     (v) Grantor has not received any notice of violation, request for information,
summons, citation, directive or other communication, written or oral,
from the State of Texas department of environmental protection (howsoever
designated) or the United States Environmental Protection Agency concerning any
intentional or unintentional act or omission on Grantor’s or any occupant’s part
resulting in the Release of Hazardous Substances from the Mortgaged Premises into
the waters or onto the lands within the jurisdiction of the State of Texas or from
the Mortgaged Premises into the waters outside the jurisdiction of

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the State of
resulting in damage to the lands, waters, fish, shellfish, wildlife, biota, air or
other resources owned, managed, held in trust or otherwise controlled by or within
the jurisdiction of the State of Texas.

     (vi) Except as may be disclosed in the Phase I, the Mortgaged Premises:
(a) is being and has been operated in compliance with all Environmental Laws, and
all permits required thereunder have been obtained and complied with in all
respects; and (b) does not have any Hazardous Substances present (other than a
Permitted Hazardous Substance).

     (vii) Grantor will and will cause its tenants to operate the Mortgaged Premises
in compliance with all Environmental Laws and will not place or permit to be placed
any Hazardous Substances (other than a Permitted Hazardous Substance) on the
Mortgaged Premises.

     (viii) No lien has been attached to or, to Grantor’s knowledge, threatened to
be imposed upon any revenue from the Mortgaged Premises, and to Grantor’s knowledge,
there is no basis for the imposition of any such lien based on any governmental
action under Environmental Laws. Neither Grantor nor, to Grantor’s knowledge, any
other party has been, or is expected to be involved in operations at the Mortgaged
Premises which could lead to the imposition of Environmental Liability on Grantor,
or on any subsequent owner of the Mortgaged Premises, or the creation of an
environmental lien on the Mortgaged Premises. In the event that any such lien is
filed, Grantor shall, within forty-five (45) days from the date that Grantor is
given notice of such lien (or within such shorter period of time as is appropriate
in the event that the State of Texas or the United States has commenced steps to
have the Mortgaged Premises sold), either: (A) pay the claim and remove the lien
from the Mortgaged Premises; or (B) furnish a cash deposit, bond or other security
satisfactory in form and substance to Beneficiary in an amount sufficient to
discharge the claim out of which the lien arises.

     (ix) In the event that Grantor shall cause or permit to exist a Release of
Hazardous Substances into the waters or onto the lands within the jurisdiction of
the State of Texas, or into the waters outside the jurisdiction of the State of
Texas resulting in damage to the lands, waters, fish, shellfish, wildlife, biota,
air or other resources owned, managed, held in trust or otherwise controlled by or
within the
jurisdiction of the State of Texas, without having obtained a permit issued by
the appropriate governmental authorities, Grantor shall promptly clean up such
Release in accordance with the provisions of all Environmental Laws.

     (c) Right to Inspect and Cure. Beneficiary shall have the right to conduct or have
conducted by its agents or contractors such environmental inspections, audits and tests as
Beneficiary shall deem necessary or advisable from time to time at the sole cost and expense of
Grantor; provided, however, that Grantor shall not be obligated to bear the expense of such

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environmental inspections, audits and tests so long as (i) no Event of Default has
occurred and is continuing beyond any applicable notice and cure period, and (ii) Beneficiary has
no cause to believe in its sole judgment that there has been a Release or threatened Release of
Hazardous Substances at the Mortgaged Premises (other than a Permitted Hazardous Substance) or that
Grantor or the Mortgaged Premises is in violation of any Environmental Law. The cost of such
inspections, audits and tests, if chargeable to Grantor as aforesaid, shall be added to the
indebtedness secured hereby and shall be secured by this Deed of Trust. Grantor shall, and shall
cause each tenant of the Mortgaged Premises to, cooperate with such inspection efforts; such
cooperation shall include, without limitation, supplying all information requested concerning the
operations conducted and Hazardous Substances located at the Mortgaged Premises. In the event that
Grantor fails to comply with any Environmental Law, Beneficiary may, in addition to any of its
other remedies under this Deed of Trust, cause the Mortgaged Premises to be in compliance with such
laws and the cost of such compliance shall be added to the sums secured by this Deed of Trust in
accordance with the provisions of Article Five hereof.

     (d) Indemnification. Grantor shall protect, indemnify, defend, and hold
harmless Beneficiary and its directors, officers, employees, agents, successors and
assigns (collectively, the “Indemnified Parties”) from and against any and all loss,
injury, damage, cost, expense and liability (including without limitation reasonable
attorneys’ fees and costs) directly or indirectly arising out of or attributable to (i)
the installation, use, generation, manufacture, production, storage, Release,
threatened Release, discharge, disposal or presence of a Hazardous Substance on, under
or about the Mortgaged Premises, or (ii) the presence of any underground storage tank
on, under or about the Mortgaged Premises, or (iii) any Environmental Liability;
including without limitation: (A) all consequential damages; (B) the costs of any
required or necessary repair, cleanup or detoxification of the Mortgaged Premises; and
(C) the preparation and implementation of any closure, remedial or other required
plans. The foregoing agreement to indemnify, defend and hold harmless Beneficiary
expressly includes, but is not limited to, any losses, liabilities, damages, injuries,
costs, expenses and claims suffered or incurred by Beneficiary upon or subsequent to
Beneficiary becoming owner of the Mortgaged Premises through foreclosure, acceptance of
a deed-in-lieu of foreclosure, or otherwise, excepting only such losses, liabilities,
damages, injuries, costs, expenses and claims which are caused by or arise out of
actions taken by Beneficiary, or by those contracting with Beneficiary, subsequent to
Beneficiary taking possession or becoming owner of the Mortgaged Premises. WITHOUT
LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH OF THE INDEMNIFIED PARTIES WITH
RESPECT TO LOSSES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE SOLE,
CONCURRENT OR COMPARATIVE NEGLIGENCE OR THE STRICT LIABILITY OF ANY SUCH INDEMNIFIED
PARTIES BUT EXCLUDING GROSS NEGLIGENCE AND WILLFUL MISCONDUCT. The indemnity evidenced
hereby shall survive the
satisfaction, release or extinguishment of the lien of this Deed of Trust,
including without limitation any extinguishment of the lien of this Deed of
Trust by foreclosure or deed in lieu thereof. Notwithstanding anything to
the contrary in the foregoing, Grantor will not be obligated to indemnify
the Indemnified Parties with respect to: (y) any losses arising solely from
a state of facts that first came into existence after Beneficiary or its
successors and assigns acquired title to the Mortgaged Premises through
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lieu thereof; or (z) to the extent caused by any act, omission, willful misconduct or gross
negligence of any of the Indemnified Parties.

     (e) Remediation. If any investigation, site monitoring, containment, cleanup,
removal, restoration or other remedial work of any kind or nature (the “Remedial Work”) is
reasonably desirable (in the case of an operation and maintenance program or similar monitoring or
preventative programs) or necessary, both as determined by an independent environmental consultant
selected by Beneficiary under any applicable federal, state or local law, regulation or ordinance,
or under any judicial or administrative order or judgment, or by any governmental person, board,
commission or agency, because of or in connection with the current or future presence, suspected
presence, release or suspected release of a Hazardous Substance into the air, soil, groundwater, or
surface water at, on, about, under or within the Mortgaged Premises or any portion thereof, Grantor
shall within thirty (30) days after written demand by Beneficiary for the performance (or within
such shorter time as may be required under applicable law, regulation, ordinance, order or
agreement), commence and thereafter diligently prosecute to completion all such Remedial Work to
the extent required by law. All Remedial Work shall be performed by contractors approved in
advance by Beneficiary (which approval in each case shall not be unreasonably withheld or delayed)
and under the supervision of a consulting engineer approved in advance by Beneficiary. All costs
and expenses of such Remedial Work (including without limitation the reasonable fees and expenses
of Beneficiary’s counsel) incurred in connection with monitoring or review of the Remedial Work
shall be paid by Grantor. If Grantor shall fail or neglect to timely commence or cause to be
commenced, or shall fail to diligently prosecute to completion, such Remedial Work, Beneficiary may
(but shall not be required to) cause such Remedial Work to be performed; and all costs and expenses
thereof, or incurred in connection therewith (including, without limitation, the reasonable fees
and expenses of Beneficiary’s counsel), shall be paid by Grantor to Beneficiary forthwith after
demand and shall be a part of the indebtedness secured hereby.

     (f) Survival. All warranties and representations above shall be deemed to be
continuing and shall remain true and correct in all material respects until all of the indebtedness
secured hereby has been paid in full and any limitations period expires. Grantor’s covenants above
shall survive any exercise of any remedy by Beneficiary hereunder or under any other instrument or
document now or hereafter evidencing or securing the said indebtedness, including foreclosure of
this Deed of Trust (or deed in lieu thereof), even if, as a part of such foreclosure or deed in
lieu of foreclosure, the said indebtedness is satisfied in full and/or this Deed of Trust shall
have been released.

ARTICLE THREE

DAMAGE, DESTRUCTION AND CONDEMNATION

     Section 3-1. Application of Insurance Proceeds. Grantor shall cause all proceeds of
insurance maintained pursuant to Subsections (a)(i) and (iii) of Section 2-4 hereof to be paid to
the Beneficiary to be applied first to the payment of all costs and expenses incurred by

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Beneficiary in obtaining such proceeds and, second, at the option of Beneficiary, either:
(a) to the reduction of the indebtedness hereby secured (without any otherwise applicable
prepayment premium); or (b) to the restoration or repair of the Mortgaged Premises, without
affecting the lien of this Deed of Trust or the obligations of Grantor hereunder. Grantor shall
not compromise or settle any loss claims on said policies without the written consent of
Beneficiary. Any such application to the reduction of the indebtedness hereby secured shall not
reduce or postpone the monthly payments otherwise required pursuant to the Note. No interest shall
be payable to Grantor on the insurance proceeds while held by Beneficiary.

     Section 3-2. Application of Condemnation Award. Should any of the Mortgaged Premises
be taken by exercise of the power of eminent domain, any award or consideration for the property so
taken shall be paid over to Beneficiary and shall be applied first to the payment of all costs and
expenses incurred by Beneficiary in obtaining such award or consideration and, second, at the
option of Beneficiary, either: (a) to the reduction of the indebtedness hereby secured (without
any otherwise applicable prepayment premium); or (b) to the restoration or repair of the Mortgaged
Premises, without affecting the lien of this Deed of Trust or the obligations of Grantor hereunder.
Beneficiary is authorized at its option to compromise and settle all awards or consideration for
the property so taken. Any such awards, if applied to the reduction of indebtedness, shall not
reduce or postpone the monthly payments otherwise required pursuant to the Note. No interest shall
be payable to Grantor on any award while held by Beneficiary.

     Section 3-3. Beneficiary to Make Proceeds Available. Notwithstanding the provisions
of Sections 3-1 and 3-2 above, in the event of insured damage to the Mortgaged Premises or in the
event of a taking by eminent domain of only a portion of the Mortgaged Premises, and provided that:
(a) the portion remaining can with restoration or repair continue to be operated for the purposes
utilized immediately prior to such damage or taking, (b) the appraised value of the Mortgaged
Premises after such restoration or repair shall not have been reduced from the appraised value as
of the date hereof, and (c) no Event of Default has occurred and is continuing beyond any
applicable notice and cure period, and (d) the leases require Grantor to restore or repair the
Mortgaged Premises and the leases remain in full force and effect and the tenants thereunder
certify to Beneficiary their intention to remain in possession of the leased premises without any
reduction in rental payments (other than temporary abatements during the period of restoration and
repair); the Beneficiary agrees to make the insurance proceeds or condemnation awards available for
such restoration and repair, except for proceeds payable pursuant to Section 2-4(a)(iii).
Beneficiary may, at its option, hold such proceeds or awards in escrow (subject to the following
paragraph) until the required restoration and repair has been satisfactorily completed. No
interest shall be payable to Grantor with respect to any such escrow.

     In the event insurance proceeds or condemnation awards are made available for restoration in
accordance with the foregoing, such proceeds shall be made available, from time to time, upon the
Beneficiary being furnished with such information, documents, instruments and certificates as
Beneficiary may require, including, but not limited to, satisfactory evidence of the estimated cost
of completion of the repair or restoration of the Mortgaged Premises, such architect’s
certificates, waivers of lien, contractor’s sworn statements and other evidence of cost

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and of payments, including, at the option of the Beneficiary, insurance against
mechanics’ liens and/or a performance bond or bonds in form satisfactory to the Beneficiary, with
premium fully prepaid, under the terms of which the Beneficiary shall be either the sole or dual
obligee, and which shall be written with such surety company or companies as may be satisfactory to
the Beneficiary, and all plans and specifications for such rebuilding or restoration which shall be
subject to approval by the Beneficiary. No payment made prior to the final completion of the work
shall exceed ninety percent (90%) of the value of the work performed, from time to time, and at all
times the undisbursed balance of said proceeds, plus additional funds deposited by Grantor
remaining in the hands of the Beneficiary shall be at least sufficient to pay for the cost of
completion of the work free and clear of liens.

     Notwithstanding anything to the contrary set forth herein, provided Grantor is in compliance
with the other conditions hereof, Grantor shall be entitled to compromise, settle, hold and
administer insurance proceeds or condemnation awards of $250,000.00 or less with respect to the
Mortgaged Premises.

     Section 3-4. Lease. To the extent the Leases that have been affirmatively consented
to or approved by Beneficiary require use of insurance proceeds or condemnation awards in a manner
inconsistent with the foregoing, the terms of the Leases shall control. Grantor’s interest in such
proceeds or awards, however, shall be subject to the terms of the foregoing Sections.

ARTICLE FOUR

DEFAULT PROVISIONS AND REMEDIES OF BENEFICIARY

     Section 4-1. Events of Default. If any of the following events occurs, it is hereby
defined as and declared to be and to constitute an “Event of Default”:

     (a) failure by Grantor to pay when due (including any applicable grace period) any amounts
required to be paid hereunder or under the Note at the time specified therein; or

     (b) an event as to which Beneficiary elects to accelerate the Loan as provided for in Section
1-4 above (“Due on Sale or Encumbrance”) or failure by Grantor to observe and perform the
covenants, conditions and agreements set forth in Section 2-4 above (“Insurance”); or

     (c) failure by Grantor to observe and perform any covenant, condition or agreement on its part
to be observed or performed in this Deed of Trust or the Note other than as referred to in (a) and
(b) above, for a period of thirty (30) days after written notice, specifying such failure and
requesting that it be remedied, given to Grantor by the Beneficiary unless the Beneficiary shall
agree in writing to an extension of such time prior to its expiration; or

     (d) if any representation or warranty made in writing by or on behalf of Grantor in this Deed
of Trust or the other Loan Documents, any financial statement, certificate, or report furnished in
order to induce the Beneficiary to make the loan secured by this Deed of Trust, shall

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prove to have been false or incorrect in any material respect, or materially misleading
as of the time such representation or warranty was made; or

     (e) if Grantor shall:

     (i) admit in writing its inability to pay its debts generally as they become
due; or

     (ii) file a petition in bankruptcy to be adjudicated a voluntary bankrupt or
file a similar petition under any insolvency act, or

     (iii) make an assignment for the benefit of its creditors,
or

     (iv) consent to the appointment of a receiver of itself or of the whole or any
substantial part of its property; or

     (f) if Grantor shall file a petition or answer seeking reorganization or arrangement of
Grantor under the Federal bankruptcy laws or any other applicable law or statute of the United
States of America or any state thereof; or

     (g) if Grantor shall, on a petition in bankruptcy filed against it, be adjudicated a bankrupt
or if a court of competent jurisdiction shall enter an order or decree appointing without the
consent of Grantor a receiver or trustee of Grantor or of the whole or substantially all of its
property, or approving a petition filed against it seeking reorganization or arrangement of Grantor
under the Federal bankruptcy laws or any other applicable law or statute of the United States of
America or any state thereof, and such adjudication, order or decree shall not be vacated or set
aside or stayed within ninety (90) days from the date of the entry thereof; or

     (h) if any Borrower (as defined in the Note) who is a natural person dies or any Borrower that
is an entity dissolves or otherwise ceases to exist; or

     (i) if a guarantor of any of the obligations secured by this Deed of Trust shall repudiate
such guarantor’s obligations or if any such individual guarantor shall die, or any such entity
guarantor shall dissolve or otherwise cease to exist, unless within sixty (60) days after such
death, or prior to such dissolution or cessation, a substitute guarantor satisfactory to
Beneficiary shall become liable to Beneficiary by executing a guaranty agreement satisfactory to
Beneficiary; or

     (j) if an event of default has occurred under any of the Loan Documents and the period for
cure thereof, if any, has elapsed without cure.

     All notice and cure periods provided herein or in the Note shall run concurrently with any
notice or cure periods provided by law. Without limiting the foregoing, Beneficiary or Trustee
shall be entitled to cause a notice of breach and election to sell to be recorded and mailed
if any event occurs that, with the giving of notice and/or passage of time, would constitute a
default

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hereunder or an event of default under the Note or would entitle Beneficiary to
accelerate the indebtedness secured hereby, and the recording and mailing to Trustor of such notice
of breach and election to sell shall constitute notice of a failure to perform pursuant hereto or
thereto.

     Section 4-2. Exercise of Specific Remedies. If an Event of Default shall occur,
Beneficiary may exercise any one or more of the following remedies, without notice of intent to
accelerate or notice of acceleration of maturity (unless the same is required by applicable
statute):

     (a) Acceleration. Beneficiary may declare the indebtedness under the Note immediately
due and payable, without presentment for payment, demand, notice of non-payment and dishonor,
notice of intent to accelerate, notice of acceleration, or any other notices required to be
given upon default in the payment of any amount due hereunder, all of which are hereby expressly
waived by Grantor.

     (b) Foreclosure. Beneficiary may require the Trustee to proceed with
foreclosure (which request shall be presumed), and in such event Trustee is authorized
and empowered to (i) sell all or part of the Mortgaged Premises (as directed by
Beneficiary in its sole discretion), at public auction, to the highest bidder, for
cash, at the county courthouse (or other area designated by the commissioners court) of
the county in Texas in which the Mortgaged Premises or any part thereof is situated, or
if the Mortgaged Premises is located in more than one county such sale may be made at
the courthouse in any county in which the Mortgaged Premises is situated or (ii) sell
the Mortgaged Premises at such other place and in accordance with such procedures and
requirements as may hereafter be provided by the laws of the State of Texas; provided,
however, that nothing in this Section 4-2(b) shall be construed so as to limit
Trustee’s rights to sell the Mortgaged Premises, or any portion thereof, by private
sale if such private sale is permitted under applicable law or after entry of a
judgment by a court of competent jurisdiction ordering the same. A sale pursuant to
(i) above shall take place at such area as shall be properly designated from time to
time by the commissioners court (or, if not so designated by the commissioners court,
at such other area as may be provided in the notice of sale hereinafter described) of
the specified county, between the hours of 10:00 o’clock a.m. and 4:00 o’clock p.m.
(the commencement of such sale to occur within three hours following the time
designated in the hereinafter-described notice of sale as the earliest time at which
such sale shall occur, if required by applicable law) on the first Tuesday of any
month, after giving notice of the time, place and terms of said sale (including the
earliest time at which such sale shall occur) and of the property to be sold in the
manner hereinafter described. Notice of a sale of all or part of the Mortgaged
Premises by the Trustee shall be given by posting written notice thereof at the
courthouse door (or
other area in the courthouse as may be designated for such public notices)
of the county in which the sale is to be made, and by filing a copy of the
notice in the office of the county clerk of the county in which the sale is
to be made, at least twenty-one (21) days preceding the date of the sale,
and if the property to be sold is in more than one county a notice shall be
posted at the courthouse door (or other area in the courthouse as may be
designated for such public notices) and filed with the county clerk of each
county in which the property to be sold is situated. In addition,
Beneficiary shall, at least twenty-one (21) days preceding the date of sale,
serve written notice of the proposed sale by certified mail on Grantor and
each debtor

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obligated to pay the debt secured hereby according to the records of Beneficiary.
Service of such notice shall be completed upon deposit of the notice, enclosed in a postpaid
wrapper, properly addressed to such debtor at the most recent address as shown by the records of
Beneficiary, in a post office or official depository under the care and custody of the United
States Postal Service. The affidavit of any person having knowledge of the facts to the effect
that such service was completed shall be prima facie evidence of the fact of service. Any notice
that is required or permitted to be given to Grantor may be addressed to Grantor at Grantor’s
address as stated above. Grantor’s address shall be changed only by depositing notice of such
change, enclosed in a postpaid wrapper, in a post office or official depository under the care and
custody of the United States Postal Service, certified mail, postage prepaid, return receipt
requested, addressed to Beneficiary at the address set forth herein (or such other address as
Beneficiary may designate by notice given as above provided to Grantor). Grantor agrees that no
notice of any sales other than as set forth in this paragraph need be given by Trustee, Beneficiary
or any other person. Any notice that is to be given by certified mail to any other debtor may, if
no address for such other debtor is shown by the records of Beneficiary, be addressed to such other
debtor at the address of Grantor as is shown by the records of Beneficiary. Notwithstanding the
foregoing provisions of this paragraph, notice of such sale given in accordance with the
requirements of the applicable laws of the State of Texas in effect at the time of such sale shall
constitute sufficient notice of such sale. Trustee may sell all or any portion of the Mortgaged
Premises (as directed by Beneficiary in its sole discretion), together or in lots or parcels, and
any sale may be adjourned by announcement at the time and place appointed for such sale without
further notice except as may be required by law. The sale or sales by Trustee of less than the
whole of the Mortgaged Premises shall not exhaust the power of sale herein granted, and Trustee is
specifically empowered to make successive sale or sales under such power until the whole of the
Mortgaged Premises shall be sold; and if the proceeds of such sale or sales of less than the whole
of the Mortgaged Premises shall be less than the aggregate of the indebtedness and the expenses
thereof, this Deed of Trust and the lien, security interest and assignment hereof shall remain in
full force and effect as to the unsold portion of the Mortgaged Premises just as though no sale or
sales had been made; provided, however, that Grantor shall never have any right to require the sale
or sales of less than the whole of the Mortgaged Premises, but Beneficiary shall have the right, at
its sole election, to request Trustee to sell less than the whole of the Mortgaged Premises. After
each sale, Trustee may execute and deliver to the purchaser or purchasers of such property good and
sufficient deeds of conveyance of fee simple title with covenants of general warranty made on
behalf of Grantor. The power of sale granted herein shall not be exhausted by any sale held
hereunder by the Trustee, and such power of sale may be exercised from time to time and as many
times as the Beneficiary may deem necessary until all of the Mortgaged Premises has been duly sold
and all of indebtedness under the Note and hereunder has been fully paid. In the event any sale
hereunder is not completed or is defective in the opinion of the Beneficiary, such sale shall not
exhaust the power of sale hereunder and the Beneficiary shall have the right to cause Trustee to
conduct a subsequent sale or sales to be made hereunder. In case of any sale hereunder, all
prerequisites to the sale shall be presumed to have been performed. Any and all statements of fact
or other recitals made in any deed or deeds given by the Trustee as to nonpayment of the
indebtedness secured hereby or as to the occurrence of any Event of Default, or as to the
Beneficiary having declared all of such indebtedness to be due and payable, or as to the request to
sell, or as to notice of time, place and terms of sale and of the

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properties to be sold having been duly given, or as to the refusal, failure or inability
to act of the Trustee, or as to the appointment of any substitute or successor trustee, or as to
any other act or thing having been duly done by the Beneficiary or by such Trustee, substitute or
successor, shall be taken as prima facie evidence of the truth of the facts so stated and recited.
The Trustee may appoint or delegate any one or more persons as agent to perform any ministerial act
or acts necessary or incident to any sale held by the Trustee, including the posting of notices but
in the name and on behalf of the Trustee.

     In addition to the requirements set forth above, in carrying out a foreclosure sale authorized
hereunder, Trustee shall comply in full at the time of sale with all requirements of Section 51.002
of the Texas Property Code, as may be amended or supplemented. If there is no statute in force at
the time of the sale governing sales of Texas real property under powers of sale conferred by deeds
of trust, such sale shall comply with applicable law, at the time of the sale, governing sales of
Texas real property under powers of sale conferred by deeds of trust. In no event shall Trustee be
required to exhibit, present or display at any such sale any of the personalty described herein to
be sold at such sale. Trustee making such sale shall receive the proceeds thereof and shall apply
the same as follows: (i) first, the Trustee shall pay the reasonable expenses of Trustee and a
reasonable Trustee’s fee or commission; (ii) second, the Trustee shall pay, so far as may be
possible and in accordance with Section 4-5 the indebtedness secured hereby, discharging first that
portion of the indebtedness arising under the covenants or agreements herein contained and not
evidenced by the Note; (iii) third, the Trustee shall pay the residue, if any, to the persons
legally entitled thereto. Payment of the purchase price to Trustee shall satisfy the obligation of
the purchaser at such sale therefor, and such purchaser shall not be
responsible for the
application thereof.

     The Beneficiary shall have the right to become the purchaser at any sale held by Trustee, or
by any receiver or public officer, and any Beneficiary purchasing at any such sale shall have the
right to credit upon the amount of the bid made therefor, to the extent necessary to satisfy such
bid, the indebtedness (or a part thereof) owing to such Beneficiary, or if such Beneficiary holds
less than all of the indebtedness secured hereby the pro rata part thereof owing to such
Beneficiary, accounting to all other Beneficiaries not joining in such bid in cash for the portion
of such bid or bids apportionable to such nonbidding Beneficiary or Beneficiaries. If an Event of
Default is made hereunder, the holder of the indebtedness or any part thereof on which the payment
is delinquent shall have the option to proceed with foreclosure in satisfaction of such item either
through judicial proceedings or by directing Trustee to proceed as if under a full foreclosure,
conducting the sale as herein provided without declaring the entire indebtedness due, and if sale
is made because of default of an installment, or a part of an installment, such sale may be made
subject to the unmatured part of the indebtedness; and it is agreed that such sale, if so made,
shall not in any manner affect the unmatured part of the indebtedness, but as to such unmatured
part this Deed of Trust shall remain in full force and effect as though no sale had been made under
the provisions of this paragraph. Several sales may be made hereunder without exhausting the right
of sale for any unmatured part of the indebtedness. At any such sale (1) Grantor hereby agrees, in
its behalf and in behalf of its heirs, executors, administrators, successors, personal
representatives and assigns, that any and all recitals made in any deed of conveyance given by
Trustee with respect to the identity of Beneficiary, the occurrence or

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existence of any default, the acceleration of the maturity of any of the indebtedness,
the request to sell, the notice of sale, the giving of notice to all debtors legally entitled
thereto, the time, place, terms, and manner of sale, and receipt, distribution and application of
the money realized therefrom, or the due and proper appointment of a substitute Trustee, and,
without being limited by the foregoing, with respect to any other act or thing having been duly
done by Beneficiary or by Trustee hereunder, shall be taken by all courts of law and equity as
prima facie evidence that the statements or recitals state facts and are without further question
to be so accepted, and Grantor hereby ratifies and confirms every act that Trustee or any
substitute Trustee hereunder may lawfully do in the premises by virtue hereof, and (2) the
purchaser may disaffirm any easement granted, or rental, lease or other contract made in violation
of any provision of this Deed of Trust, and may take immediate possession of the Mortgaged Premises
free from, and despite the terms of, such grant of easement and rental or lease contract.
Beneficiary may bid and become the purchaser of all or any part of the Mortgaged Premises at any
trustee’s or foreclosure sale hereunder, and the amount of Beneficiary’s successful bid may be
credited on the indebtedness.

     (c) Equity or Law. Beneficiary may proceed by a suit or suits in equity or at law,
whether for the specific performance of any covenant or agreement herein contained or in aid of the
execution of any power herein granted, or for any foreclosure hereunder or for the sale of the
Mortgaged Premises under the judgment or decree of any court or courts of competent jurisdiction.

     (d) Procedure. This instrument shall be effective as a mortgage as well as a deed of
trust and upon the occurrence of an Event of Default may be foreclosed as to any of the Mortgaged
Premises in any manner permitted by the laws of the State of Texas or of any other state in which
any part of the Mortgaged Premises is situated, and any foreclosure suit may be brought by the
Trustee or by the Beneficiary. In the event a foreclosure hereunder shall be commenced by the
Trustee, the Beneficiary may at any time before the sale of the Mortgaged Premises direct the
Trustee to abandon the sale, and may then institute suit for the collection of the secured
indebtedness, and for the foreclosure of this Deed of Trust. It is agreed that if the Beneficiary
should institute a suit for the collection of the secured indebtedness (subject to the exculpation
provisions of the Note), and for the foreclosure of this Deed of Trust, the Beneficiary may at any
time before the entry of a final judgment in said suit dismiss the same, and require the Trustee to
sell the Mortgaged Premises in accordance with the provisions of this Deed of Trust.

     Section 4-3. Entry on Mortgaged Premises. Upon occurrence, and during the
continuance, of an Event of Default hereunder, Beneficiary may enter into and upon and take
possession of all or any part of the Mortgaged Premises subject to the rights of Tenants, and may
exclude Grantor, and all persons claiming under Grantor, and its or their agents or servants,
wholly or partly therefrom; and, holding the same, Beneficiary may use, administer, manage,
operate, and control the Mortgaged Premises subject to the rights of Tenants and may exercise all
rights and powers of Grantor in the name, place and stead of Grantor, or otherwise, as the
Beneficiary shall deem best; and in the exercise of any of the foregoing rights and powers
Beneficiary shall not be liable to Grantor for any loss or damage thereby sustained unless due
solely to the willful misconduct or gross negligence of Beneficiary.

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     Section 4-4. Trustee or Receiver. After the happening of any Event of Default
or upon the commencement of any proceedings to foreclose this Deed of Trust or to enforce the
specific performance hereof or in aid thereof or upon the commencement of any other judicial
proceeding to enforce any right of Beneficiary, Beneficiary may make application to a court of
competent jurisdiction, as a matter of strict right and without notice to Grantor or regard to the
adequacy of the Mortgaged Premises for the repayment of the indebtedness secured hereby, for
appointment of a receiver of the Mortgaged Premises, and Grantor does hereby irrevocably consent to
such appointment. Any such receiver shall have all the usual powers and duties of receivers in
similar cases, including the full power to rent, maintain and otherwise operate and the Mortgaged
Premises upon such terms as may be approved by the court, and shall apply the rents assigned under
the Assignment of Rents in accordance with the provisions thereof.

     Section 4-5. Proceeds of Sale. In any suit to foreclose the lien of this Deed of
Trust there shall be allowed and included in the decree for sale, to be paid out of the rents or
the proceeds of such sale:

     (a) all principal and interest remaining unpaid on the Note and secured hereby with interest
at twelve percent (12%) per annum or, if less, the Maximum Legal Rate of Interest from the date due
until paid;

     (b) all late charges, if any, and all other items advanced or paid by Beneficiary pursuant to
this Deed of Trust, with interest at twelve percent (12%) per annum or, if less, the Maximum Legal
Rate of Interest from the date of advancement until paid; and

     (c) all court costs, attorney’s fees, appraiser’s fees, environmental audits, expenditures for
documentary and expert evidence, stenographer’s charges, publication costs, and costs (which may be
estimated as to items to be expended after entry of the decree) of procuring all abstracts of
title, title searches and examinations, title guarantee policies, Torrens certificates and similar
data with respect to title which Beneficiary may deem necessary. All such expenses shall become
additional indebtedness secured hereby and immediately due and payable, with interest at twelve
percent (12%) per annum or, if less, the Maximum Legal Rate of Interest, when paid or incurred by
Beneficiary in connection with any proceeding, including probate and bankruptcy proceedings, to
which Beneficiary shall be a party, either as plaintiff, claimant or defendant, by reason of this
Deed of Trust or any indebtedness hereby secured or in connection with preparations for the
commencement of any suit for the foreclosure hereof after accrual of such right to foreclose,
whether or not actually commenced.

     The proceeds of any foreclosure sale shall be distributed and applied to the items described
in (a), (b) and (c) of this Section, inversely to the order of their listing, and any surplus of
proceeds of such sale shall be paid to Grantor.

     Section 4-6. Waiver of Events of Default; Forbearance. Beneficiary may in its
discretion waive any Event of Default hereunder and its consequences and rescind any declaration of

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acceleration of principal. No forbearance by Beneficiary in the exercise of any right or remedy
hereunder shall affect the ability of Beneficiary to thereafter exercise any such right or remedy.

     Section 4-7. Waiver of Extension, Marshalling; Other. Grantor hereby waives to the
full extent lawfully allowed the benefit of any appraisement, homestead, moratorium, stay and
extension laws now or hereafter in force. Grantor hereby further waives any rights available with
respect to marshalling of assets so as to require the separate sales of any portion of the
Mortgaged Premises, or as to require the Beneficiary to exhaust its remedies against a specific
portion of the Mortgaged Premises before proceeding against any other, and does hereby expressly
consent to and authorize the sale of the Mortgaged Premises as a single unit or parcel. To the
maximum extent permitted by law, the Grantor irrevocably and unconditionally WAIVES and RELEASES
any present or future rights (a) of reinstatement or redemption, (b) that may exempt the Mortgaged
Premises from any civil process, (c) to appraisal or valuation of the Mortgaged Premises, (d) to
extension of time for payment, (e) that may subject Beneficiary’s exercise of its remedies to the
administration of any decedent’s estate or to any partition or liquidation action, (f) to any
homestead and exemption rights provided by the Constitution and laws of the United States and of
Texas, (g) to notice of acceleration or notice of intent to accelerate (other than as expressly
stated herein), and (h) that in any way would delay or defeat the right of the Beneficiary to cause
the sale of the Mortgaged Premises for the purpose of satisfying the obligations secured hereby.
To the maximum extent permitted by law, the Grantor agrees that the price paid at a lawful
foreclosure sale, whether by the Beneficiary or by a third party, and whether paid through
cancellation of all or a portion of the Note or in cash, shall conclusively establish the value of
the Mortgaged Premises.

     Section 4-8. Non-Exclusive Remedies. Each and every power or remedy herein
specifically given shall be in addition to every other power or remedy, existing or implied, given
now or hereafter existing at law or in equity, and each and every power and remedy herein
specifically given or otherwise so existing may be exercised from time to time and as often and in
such order as may be deemed expedient by Beneficiary, and the exercise or the beginning of
the exercise of one power or remedy shall not be deemed a waiver of the right to exercise at
the same time or thereafter any other power or remedy. No delay or omission of Beneficiary in the
exercise of any right or power accruing hereunder shall impair any such right or power or be
construed to be a waiver of any default or acquiescence therein.

ARTICLE FIVE

THE BENEFICIARY AND TRUSTEE

     Section 5-1. Right of Beneficiary to Pay Taxes and Other Charges. In case any tax,
assessment or governmental or other charge upon any part of the Mortgaged Premises or any insurance
premium with respect thereto is not paid, to the extent, if any, that the same is legally payable,
Beneficiary may pay such tax, assessment, governmental charge or premium, without prejudice,
however, to any rights of Beneficiary hereunder arising in consequence of such failure;
and any amount at any time so paid under this Section, with interest thereon from the

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date of payment at a
rate equal to twelve percent (12%) per annum or, if less, the Maximum Legal Rate of Interest, until
paid, shall be repaid to Beneficiary upon demand and shall become so much additional indebtedness
secured by this Deed of Trust, and the same shall be given a preference in payment over principal
of or interest on the Note, but Beneficiary shall be under no obligation to make any such payment.

     Section 5-2. Reimbursement of Beneficiary. If any action or proceeding be
commenced (except an action to foreclose this Deed of Trust), to which action or proceeding the
Beneficiary is made a party, or in which it becomes necessary, in Beneficiary’s reasonable opinion,
to defend or uphold the lien of this Deed of Trust, or to protect the Mortgaged Premises or any
part thereof, all reasonable sums paid by the Beneficiary to establish or defend the rights and
lien of this Deed of Trust or to protect the Mortgaged Premises or any part thereof (including
reasonable attorneys’ fees, and costs and allowances) and whether suit be brought or not, shall be
paid, upon demand, to Beneficiary by Grantor, together with interest at a rate equal to twelve
percent (12%) per annum or, if less, the Maximum Legal Rate of Interest, until paid. Any such sum
or sums and the interest thereon shall be secured hereby in priority to the indebtedness evidenced
by the Note.

     Section 5-3. Release of Mortgaged Premises. Beneficiary shall have the right at any
time, and from time to time, at its discretion to release from the lien of this Deed of Trust all
or any part of the Mortgaged Premises without in any way prejudicing its rights with respect to all
of the Mortgaged Premises not so released.

     Section 5-4. Trustee. (a) Trustee shall not be required to take any action toward
the execution and enforcement of the trust hereby created or to institute, appear in, or defend any
action, suit, or other proceeding in connection therewith where, in Trustee’s opinion, such action
would be likely to involve Trustee in expense or liability, unless requested so to do by a written
instrument signed by Beneficiary and, if Trustee so requests, unless Trustee is tendered security
and indemnity satisfactory to Trustee against any and all cost, expense, and liability arising
therefrom. Trustee shall not be responsible for the execution, acknowledgment, or validity of the
Loan Documents, or for the proper authorization thereof, or for the sufficiency of the lien
and security interest purported to be created hereby, and Trustee makes no representation in
respect thereof or in respect of the rights, remedies, and recourses of Beneficiary.

     (b) With the approval of Beneficiary, Trustee shall have the right to take any and all of the
following actions: (i) to select, employ, and advise with counsel (who may be, but need not be,
counsel for Beneficiary) upon any matters arising hereunder, including the preparation, execution,
and interpretation of the Loan Documents, and shall be fully protected in relying as to legal
matters on the advice of counsel, (ii) to execute any of the trusts and powers hereof and to
perform any duty hereunder either directly or through his agents or attorneys, (iii) to select and
employ, in and about the execution of his duties hereunder, suitable accountants, engineers and
other experts, agents and attorneys-in-fact, either corporate or individual, not regularly in the
employ of Trustee, and Trustee shall not be answerable for any act, default, negligence, or
misconduct of any such accountant, engineer or other expert, agent or attorney-in-fact, if selected
with reasonable care, or for any error of judgment or act done by Trustee in good faith, or be

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otherwise responsible or accountable under any circumstances whatsoever, except for Trustee’s gross
negligence or bad faith, and (iv) any and all other lawful action as Beneficiary may instruct
Trustee to take to protect or enforce Beneficiary’s rights hereunder. Trustee shall not be
personally liable in case of entry by Trustee, or anyone entering by virtue of the powers herein
granted to Trustee, upon the Mortgaged Premises for debts contracted for or liability or damages
incurred in the management or operation of the Mortgaged Premises. Trustee shall have the right to
rely on any instrument, document, or signature authorizing or supporting any action taken or
proposed to be taken by Trustee hereunder, believed by Trustee in good faith to be genuine. Trustee
shall be entitled to reimbursement for expenses incurred by Trustee in the performance of Trustee’s
duties hereunder and to reasonable compensation for such of Trustee’s services hereunder as shall
be rendered. Grantor will, from time to time, pay the compensation due to Trustee hereunder and
reimburse Trustee for, and save Trustee harmless against, any and all liability and expenses which
may be incurred by Trustee in the performance of Trustee’s duties.

     (c) All moneys received by Trustee shall, until used or applied as herein provided, be held in
trust for the purposes for which they were received, but need not be segregated in any manner from
any other moneys (except to the extent required by applicable law) and Trustee shall be under no
liability for interest on any moneys received by Trustee hereunder.

     (d) By accepting or approving anything required to be observed, performed, or fulfilled or to
be given to Trustee or Beneficiary pursuant to the Loan Documents, including without limitation,
any officer’s certificate, balance sheet, statement of profit and loss or other financial
statement, survey, appraisal, or insurance policy, neither Trustee nor Beneficiary shall be deemed
to have warranted, consented to, or affirmed the sufficiency, legality, effectiveness, or legal
effect of the same, or of any term, provision, or condition thereof, and such acceptance or
approval thereof shall not be or constitute any warranty or affirmation with respect thereto by
Trustee or Beneficiary.

     (e) Should any deed, conveyance, or instrument of any nature be required from Grantor by any
Trustee or substitute Trustee to more fully and certainly vest in and confirm to the Trustee or
substitute Trustee such estates, rights, powers, and duties, then, upon request by
the Trustee or substitute Trustee, any and all such deeds, conveyances and instruments shall
be made, executed, acknowledged, and delivered and shall be caused to be recorded and/or filed by
Grantor.

     (f) Grantor agrees that Trustee may be an officer, agent, attorney or employee of Beneficiary
and any objections to such fact which might be made by Grantor are hereby waived. The Trustee
shall have the right to rely on any instrument, document or signature authorizing or supporting any
action taken or proposed to be taken by them hereunder, believed by them in good faith to be
genuine. Trustee may resign by an instrument in writing addressed to Beneficiary. GRANTOR WILL
REIMBURSE TRUSTEE FOR, AND INDEMNIFY AND SAVE HIM HARMLESS AGAINST, ANY AND ALL LIABILITY AND
EXPENSES WHICH MAY BE INCURRED BY HIM IN THE PERFORMANCE OF HIS DUTIES HEREUNDER, INCLUDING
LIABILITY AND EXPENSES DUE TO TRUSTEE’S NEGLIGENCE, BUT EXCLUDING LIABILITY AND EXPENSES DUE TO
TRUSTEE’S

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GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. Beneficiary shall at any time and from time to
time have the irrevocable right to remove Trustee herein named without notice or cause and to
appoint his successor by an instrument in writing, duly acknowledged, in such form as to entitle
such written instrument to be recorded in the State of Texas (or any other state where the
Mortgaged Premises may be located) and in the event of the death or resignation of Trustee herein
named, Beneficiary shall have the right to appoint his successor by such written instrument and,
without conveyance of the Mortgaged Premises, any substitute Trustee so appointed shall, without
any further act, deed, or conveyance, possess all the estate, rights, powers, duties and
obligations herein conferred on Trustee in the same manner and to the same extent as though he/she
were named herein as Trustee; but nevertheless, upon the written request of Beneficiary or of the
substitute Trustee, the Trustee ceasing to act shall execute and deliver any instrument
transferring to such substitute Trustee, upon the trusts herein expressed, all the estates,
properties, rights, powers, and trusts of the Trustee so ceasing to act, and shall duly assign,
transfer and deliver any of the property and moneys held by such Trustee to the substitute Trustee
so appointed in the Trustee’s place. Neither the original Trustee nor any substitute Trustee shall
be required to make bond, oath or file an inventory.

     Section 5-5. Indemnification of Trustee. Except for actions that constitute gross
negligence or willful misconduct, Trustee shall not be liable for any act or omission or error of
judgment.

ARTICLE SIX

SECURITY AGREEMENT

     Section 6-1. Security Agreement and Financing Statement Under Uniform Commercial
Code. Grantor, being a debtor as that term is used in the Uniform Commercial Code of the State
of Texas as in effect from time to time (herein called the “Code”), as security for payment of the
Note, hereby grants a security interest in any part of the Mortgaged Premises other than real
estate (all for the purposes of this Article called “Collateral”), including any proceeds generated
therefrom (although such coverage shall not be interpreted to mean that Beneficiary consents to the
sale of any of the Collateral), to Beneficiary (being the secured party as that term is used in
the Code) and hereby authorizes Beneficiary to file financing statements covering the
Collateral. This Deed of Trust constitutes a security agreement and a financing statement,
including a fixture financing statement, under the Code. All of the terms, provisions, conditions
and agreements contained in this Deed of Trust pertain and apply to the Collateral as fully and to
the same extent as to any other property comprising the Mortgaged Premises; and the following
provisions of this Article shall not limit the generality or applicability of any other provision
of this Deed of Trust but shall be in addition thereto. The security interest created hereby is
specifically intended to cover and include all Leases to the Land, including all extensions,
renewals and amendments and replacements of said Leases.

     Section 6-2. Defined Terms. The terms and provisions contained in this Article
shall, unless the context otherwise requires, have the meanings and be construed as provided in the
Code.

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     Section 6-3. Grantor’s Representations and Warranties. Grantor represents that:

     (a) It has rights in, or the power to transfer, the Collateral, and the Collateral is subject
to no liens, charges or encumbrances other than the lien hereof.

     (b) As of the date of this Deed of Trust, no other party has a perfected interest in any of
the Collateral.

     (c) It is an organization, being a limited liability company organized under the laws of the
State of Delaware.

     (d) Its chief executive office or principal residence is located at 2555 E. Camelback Road,
Suite 400, Phoenix, AZ 85016.

     (e) Grantor’s organizational number is: 4756144.

     Section 6-4. Grantor’s Obligations. Grantor agrees that until its obligations
hereunder are paid in full:

     (a) It shall not change its legal name, its type of organization or its state of organization,
and shall not merge or consolidate with any other person or entity without at least thirty (30)
days prior written notice to Beneficiary.

     (b) It shall not pledge, mortgage or create, or suffer to exist a security interest in the
Collateral in favor of any person other than Beneficiary.

     (c) It shall keep the Collateral in good order and repair and will not use the same in
violation of law or any policy of insurance thereon.

     (d) It shall use the Collateral solely for business purposes, being installed upon the
Mortgaged Premises for Grantor’s own use or as the equipment and furnishings furnished by Grantor,
as landlord, to tenants of the Mortgaged Premises.

     (e) It shall keep the Collateral at the Land and shall not remove, sell, assign or transfer it
therefrom, nor allow a third party to do so, without the prior written consent of Beneficiary,
which may be withheld in Beneficiary’s sole and absolute discretion, unless disposed of in the
ordinary course of business and replaced with items of comparable utility and/or quality and value
free and clear of all liens or title retention devices except purchase money security interests.
The Collateral may be affixed to such real estate but will not be affixed to any other real estate.

     (f) It will, on its own initiative, or as Beneficiary may from time to time reasonably
request, and at its own cost and expense, take all steps necessary and appropriate to establish and
maintain Beneficiary’s perfected security interest in the Collateral subject to no adverse liens or

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encumbrances, including, but not limited to, furnishing to Beneficiary additional information,
delivering possession of the Collateral to Beneficiary, executing and delivering to Beneficiary
financing statements and other documents in a form satisfactory to Beneficiary, placing a legend
that is acceptable to Beneficiary on all chattel paper created by Grantor indicating that
Beneficiary has a security interest in the chattel paper and assisting Beneficiary in obtaining
executed copies of any and all documents required of third parties. Beneficiary is authorized to
file a financing statement with respect to the Collateral.

     Section 6-5. Right of Inspection. At any and all reasonable times and subject to the
rights of Tenants, Beneficiary and its duly authorized agents, attorneys, experts, engineers,
accountants and representatives shall have the right to inspect the Collateral fully to ensure
compliance with this Mortgage.

     Section 6-6. Remedies. If an Event of Default hereunder shall occur and at any time
thereafter (such default not having previously been cured), the Beneficiary at its option may
declare the indebtedness hereby secured immediately due and payable, and thereupon Beneficiary
shall have and may exercise with respect to all or any part of the Collateral all of the rights,
remedies and powers of a secured party under the Code, including, without limitation, the right and
power to repossess, retain and sell, at public or private sale or sales, or otherwise dispose of,
lease or utilize the Collateral or any part thereof and to dispose of the proceeds in any manner
authorized or permitted under the applicable provisions of the Code, and to apply the proceeds
thereof toward payment of Beneficiary’s reasonable attorneys’ fees and other expenses and costs of
pursuing, searching for, receiving, taking, keeping, storing, advertising, and selling the
Collateral thereby incurred by Beneficiary, and toward payment of the indebtedness under the Note
and hereunder in such order and manner as Beneficiary may elect consistent with the provisions of
the Code. Nothing in this Section shall be construed to impair or limit any other right or power
to which Beneficiary may be entitled at law or in equity.

     Among the rights of Beneficiary upon and during the continuance of an Event of Default that
has not been cured, and without limitation, Beneficiary shall have the right (but not the
obligation), without being deemed guilty of trespass and without liability for damages thereby
occasioned, but subject to the rights of Tenants, (i) to enter upon any premises where said
Collateral may be situated and take possession of the Collateral, or render it unusable, or dispose
of the Collateral on Grantor’s premises, and Grantor agrees not to resist or to interfere and (ii)
to take any action deemed necessary or appropriate or desirable by Beneficiary and at
Beneficiary’s option, and in its discretion, to repair, refurbish or otherwise prepare the
Collateral for sale, lease or other use or disposition as herein authorized. Beneficiary may, at
Beneficiary’s discretion, require Grantor to assemble the Collateral and make it available to
Beneficiary at a place designated by Beneficiary that is reasonably convenient to both parties.

     Beneficiary shall give Grantor notice, by certified mail, postage prepaid, of the time and
place of any public sale of any of the Collateral or of the time after which any private sale or
other intended disposition thereof is to be made by sending notice to Grantor at the address of
Grantor set forth herein at least ten (10) days before the time of the sale or other disposition,
which provisions for notice Grantor and Beneficiary agree are reasonable; provided, however,

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that nothing herein shall preclude Beneficiary from proceeding as to both real and personal property in
accordance with Beneficiary’s rights and remedies in respect to real property as provided in the
Code, and without any notice to Grantor.

     To the extent such may now or hereafter be permitted under Texas law, Beneficiary is
authorized to file financing statements and continuation statements under the Code with respect to
the Collateral without joinder of Grantor in such filing. Grantor authorizes Beneficiary to
prepare and file such financing statements, continuation statements and other documents relating to
the Collateral as Beneficiary may reasonably deem necessary to preserve and maintain the priority
of the security interest created by this Deed of Trust and shall pay to Beneficiary on demand any
expenses and reasonable attorneys’ fees incurred by Beneficiary in connection with the preparation
and filing of this Deed of Trust and of any financing statements, continuation statements, partial
releases, termination statements, or other documents necessary or desirable to continue or confirm
Beneficiary’s security interest or any modification thereof. This document, and any carbon,
photographic or other reproduction of this document may be filed by Beneficiary and shall be
sufficient as a financing statement. All or part of the Collateral is or is to become fixtures,
timber or minerals on the real estate constituting a portion of the Mortgaged Premises, but this
statement shall not impair or limit the effectiveness of this document as a security agreement or
financing statement, for other purposes, and this Deed of Trust shall constitute a fixture, timber
and mineral financing statement and, as such, shall be filed for record in the real estate records
of the county in which the land covered hereby is located. The name of the record owner of the
land covered hereby is the party or parties defined herein as Grantor.

     Unless otherwise disclosed to Beneficiary as herein provided, Grantor represents and warrants
that, except for the security interest granted hereby in the Collateral, Grantor is the owner of
the Collateral free of any adverse claim, security interest or encumbrance, and Grantor shall
defend the Collateral against all claims and demands of any person at any time claiming the same of
any interest herein. Grantor has not heretofore signed any financing statement and no financing
statement signed by Grantor is now on file in any public office except those statements, true and
correct copies of which have been delivered to Beneficiary. So long as any amount remains unpaid
on the indebtedness secured hereby, Grantor shall not execute and there shall not be filed in any
public office any such financing statement or statements affecting the Collateral other than
financing statements in favor of Beneficiary hereunder.

     The security interest granted herein shall not be construed or deemed to constitute
Beneficiary or Trustee as a trustee or beneficiary in possession of the Mortgaged Premises so as to
obligate Beneficiary or Trustee to lease the Mortgaged Premises or attempt to do the same, or to
take any action, incur any expenses or perform or discharge any obligation, duty or liability with
respect to the Mortgaged Premises or any part thereof or otherwise.

     Section 6-7. Fixture Filing. This Deed of Trust creates a security interest in goods
which are or are to become fixtures related to the real estate described in Exhibit A, shall be
effective as a fixture filing and is to be filed in the real estate records.

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ARTICLE SEVEN

MISCELLANEOUS

     Section 7-1. Additions to the Mortgaged Premises. In the event any additional
improvements, Equipment, or property not herein specifically identified shall be or in the future
become a part of the Mortgaged Premises by location or installation on the Mortgaged Premises or
otherwise, then this Deed of Trust shall immediately attach to and constitute a lien or security
interest against such additional items without further act or deed of Grantor.

     Section 7-2. Additional Notes. Grantor may also issue additional notes (the
“Additional Notes”) from time to time in order to evidence additional indebtedness of Grantor to
the Beneficiary. The Additional Notes shall be equally and proportionately secured by the lien of
this Deed of Trust with the Note, without preference, priority or distinction as to lien or
otherwise, notwithstanding the date of issuance thereof. From and after the issuance of any
Additional Notes, the term Note shall be deemed to include the Additional Notes in respect to all
matters of benefits and security under and in the enforcement of this Deed of Trust.

     Section 7-3. No Waiver of Prepayment Premium. Upon the acceleration of the maturity
of the indebtedness as herein provided, a tender of payment of the amount necessary to satisfy the
entire indebtedness secured hereby made at any time prior to foreclosure sale by Grantor, or by
anyone on behalf of Grantor, shall constitute an evasion of the prepayment terms of said Note and
be deemed to be a voluntary prepayment thereunder and any such payment to the extent permitted by
law, will therefore include the additional payment required under the prepayment privilege, if any,
contained in said Note or, if at that time there be no prepayment privilege, then such payment
will, to the extent permitted by law, include an additional payment of twelve percent (12%) of the
then principal balance.

     Section 7-4. Supplements or Amendments. This Deed of Trust may not be supplemented
or amended except by written agreement between Beneficiary and Grantor.

     Section 7-5. Successors and Assigns. All provisions hereof shall inure to and bind
the respective successors, and assigns of the parties hereto. The word Grantor shall include all
persons claiming under or through Grantor and all persons liable for the payment of indebtedness or
any part thereof, whether or not such persons shall have executed the Note or this Deed of
Trust. Wherever used, the singular number shall include the plural, the plural the singular,
and the use of any gender shall be applicable to all genders.

     Section 7-6. Notices. All notices, demands, consents or requests which are either
required or desired to be given or furnished hereunder (a “Notice”) shall be in writing and shall
be deemed to have been properly given if either delivered personally or by overnight commercial
courier or sent by United States registered or certified mail, postage prepaid, return receipt
requested, to the address of the parties hereinabove set out. Such Notice shall be effective on
receipt or refusal if by personal delivery, the first business day after the deposit of such Notice
with an overnight courier service by the time deadline for next business day delivery if by

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commercial courier and the earlier of actual receipt or refusal (which shall include a failure to
respond to notification of delivery by the U.S. Postal Service) or three (3) business days
following mailing if sent by U.S. Postal Service mail. By Notice complying with the foregoing,
each party may from time to time change the address to be subsequently applicable to it for the
purpose of the foregoing.

     Section 7-7. Severability. If any provision of this Deed of Trust shall be held or
deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect
any other provision or render the same invalid, inoperative, or unenforceable to any extent
whatever.

     Section 7-8. Choice of Law. This Deed of Trust shall be construed and enforced
according to and governed by the laws of Texas (excluding conflicts of laws rules) and applicable
federal law.

     Section 7-9. Captions. All captions and headings in this Deed of Trust are included
for convenience or reference only and shall in no respect constitute a part of the terms hereof nor
describe, define or in any manner limit the scope of this Deed of Trust, any interest granted
hereby or any term or provision hereof.

     Section 7-10. Counterparts. This Deed of Trust may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.

     Section 7-11. Further Assurances. Grantor will, from time to time, upon ten (10)
business days’ prior written request from Beneficiary, make, execute, acknowledge and deliver to
Beneficiary such supplemental mortgages, certificates and other documents, as may be necessary for
better assuring and confirming unto Beneficiary any of the Mortgaged Premises, or for more
particularly identifying and describing the Mortgaged Premises, or to preserve or protect the
priority of the lien of this Deed of Trust, and generally do and perform such other acts and things
and execute and deliver such other instruments and documents as may reasonably be deemed necessary
or advisable by Beneficiary to carry out the intentions of this Deed of Trust.

     Section 7-12. Discrete Mortgaged Premises. Grantor shall not by act or omission
permit any building or other improvement on any premises not subject to the lien of this Deed of
Trust to rely on the Mortgaged Premises or any part thereof or any interest therein to fulfill any
municipal or governmental requirement, and Grantor hereby assigns to Beneficiary any and all
rights to give consent for all or any portion of the Mortgaged Premises or any interest
therein to be so used. Similarly, no building or other improvement on the Mortgaged Premises shall
rely on any premises not subject to the lien of this Deed of Trust or any interest therein to
fulfill any governmental or municipal requirement. Grantor shall not by act or omission impair the
integrity of the Mortgaged Premises as a single zoning lot separate and apart from all other
premises. Any act or omission by Grantor which would result in a violation of any of the
provisions of this paragraph shall be void.

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     Section 7-13. Certificates. Grantor and Beneficiary each will, from time to time,
upon ten (10) business days’ prior written request by the other party, execute, acknowledge and
deliver to the requesting party, a certificate signed by an appropriate officer, stating that this
Deed of Trust is unmodified and in full force and effect (or, if there have been modifications,
that this Deed of Trust is in full force and effect as modified and setting forth such
modifications) and stating the principal amount secured hereby and the interest accrued to date on
such principal amount. Such estoppel certificate from Beneficiary shall also state either that, to
the actual knowledge of the signer of such certificate and based on no independent investigation,
no Event of Default or occurrence which with the passage of time or the giving of notice would be
or become an Event of Default exists hereunder or, if any Event of Default or such occurrence shall
exist hereunder, specify such Event of Default or such occurrence of which Beneficiary has actual
knowledge. The estoppel certificate from Grantor shall also state to the best knowledge of Grantor
whether any offsets or defenses to the indebtedness exist and if so shall identify them.

     Section 7-14. Usury Savings. In the event that maturity of the indebtedness secured
hereby is accelerated by Beneficiary because of the occurrence of an Event of Default hereunder and
a tender of payment is made by or on behalf of Grantor in the amount necessary to satisfy the
indebtedness at any time prior to judicial confirmation of a foreclosure sale, then such tender
shall constitute a prepayment under the Note and shall, to the extent specified in the Note,
require payment of the prepayment premium provided for in the Note. If at the time any prepayment
premium provided for in this Deed of Trust is due, any portion thereof would be deemed to be
interest under applicable law and as such would result in exceeding the highest non-usurious rate
or amount of interest allowed by applicable law, said prepayment premium shall be reduced so that
the portion thereof deemed to be interest, when added to all other interest payable under the Loan
Documents or otherwise in connection with the loan, computed from the date of disbursement of the
proceeds of the loan until the date of final payment hereunder (such combined interest to be
allocated and spread throughout such entire term) does not exceed the highest non-usurious rate or
amount of interest permitted to be charged under applicable laws as construed by courts having
jurisdiction thereof.

     The invalidity, or unenforceability in particular circumstances, of any provision of this Deed
of Trust shall not extend beyond such provision or such circumstances and no other provision of
this instrument shall be affected thereby. As used herein, the term “Maximum Legal Rate of
Interest” shall mean and refer to the maximum rate of non-usurious interest, if any, that
Beneficiary may from time to time charge Grantor and in regard to which Grantor would be prevented
successfully from raising the claim or defense of usury under applicable law as now, or to the
extent permitted by law, as may hereafter be, in effect (said law permitting the highest rate being
herein referred to as the “Interest Law”). Unless changed in accordance with law, the
applicable rate ceiling under Texas law shall be the weekly rate ceiling, from time to time in
effect, as provided in Section 303.002 of the Texas Finance Code Annotated (Vernon Supp. 2001), as
amended. It is the intention of Grantor and Beneficiary to conform strictly to the Interest Law
applicable to this loan transaction. Accordingly, it is agreed that notwithstanding any provision
to the contrary in this Deed of Trust, the Note or in any of the documents securing payment of the
indebtedness thereunder or otherwise relating thereto, the aggregate of all interest and any other
charges or consideration constituting interest under applicable Interest Law that is

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taken, reserved, contracted for, charged or received under this Deed of Trust, or under any of the other
aforesaid agreements or otherwise in connection with this loan transaction shall under no
circumstances exceed the maximum amount of interest allowed by the Interest Law applicable to this
loan transaction. If any excess of interest in such respect is provided for, or shall be
adjudicated to be so provided for, in this Deed of Trust, in the Note or in any of the documents
securing payment of the indebtedness thereunder or otherwise relating thereto, then in such event
(a) the provisions of this paragraph shall govern and control, (b) neither Grantor nor Grantor’s
heirs, legal representatives, successors or assigns or any other party liable for the payment of
the indebtedness thereunder shall be obligated to pay the amount of such interest to the extent
that it is in excess of the maximum amount of interest allowed by the Interest Law applicable to
this loan transaction, (c) any excess shall be deemed a mistake and cancelled automatically and, if
theretofore paid, shall be credited on the indebtedness by Beneficiary (or if the indebtedness
shall have been paid in full, refunded to Grantor) and (d) the effective rate of interest shall be
automatically subject to reduction to the Maximum Legal Rate of Interest allowed under such
Interest Law as now or hereafter construed by courts of appropriate jurisdiction. The foregoing
specifically includes, but is not limited to, prepayment premiums that may become due in the event
of an acceleration of maturity under this Deed of Trust or the Note. All sums paid or agreed to be
paid the Beneficiary for the use, forbearance or detention of the indebtedness secured hereby
shall, to the extent permitted by the Interest Law applicable to this loan transaction, be
amortized, prorated, allocated and spread throughout the full term of the Note. In no event shall
the provisions of Chapter 346 of the Texas Finance Code as amended (formerly found in Article 5069,
Chapter 15, of the Revised Civil Statutes of Texas) (which regulates certain revolving credit loan
amounts and tri-party accounts) apply to the loan evidenced by the Note.

     Section 7-15. Regulation U. Grantor covenants and agrees that it shall constitute an
Event of Default hereunder if any of the proceeds of the loan for which the Note is given will be
used, or were used, as the case may be, for the purpose (whether immediate, incidental or ultimate)
of “purchasing” or “carrying” any “margin security” as such terms are defined in Regulation U of
the Board of Governors of the Federal Reserve System (12 CFR Part 221) or for the purpose of
reducing or retiring any indebtedness which was originally incurred for any such purpose.

     Section 7-16. Minerals. Without the prior written consent of Beneficiary, there
shall be no drilling or exploring for or extraction, removal, or production of minerals from the
surface or subsurface of the Mortgaged Premises. The term “minerals” as used herein shall include,
without limiting the generality of such term, oil, gas, casinghead gas, coal, lignite,
hydrocarbons, methane, carbon dioxide, helium, uranium and all other natural elements, compounds
and substances, including sand and gravel.

     Section 7-17. Vendor’s Lien. To the extent that proceeds of the Note are used to pay
indebtedness secured by any outstanding lien, security interest, charge or prior encumbrance
against the Mortgaged Premises, such proceeds have been advanced by Beneficiary at Grantor’s
request, and Beneficiary shall be subrogated to any and all rights, security interests and liens
owned by any owner or holder of such outstanding liens, security interests, charges or

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encumbrances, however remote, irrespective or whether said liens, security interests, charges or
encumbrances are released, and all of the same are recognized as valid and subsisting and are
renewed and continued and merged herein to secure the secured indebtedness, but the terms and
provisions of this Deed of Trust shall govern and control the manner and terms of enforcement of
the liens, security interests, charges and encumbrances to which Beneficiary is subrogated
hereunder. It is expressly understood that, in consideration of the payment of such indebtedness
by Beneficiary, Grantor hereby waives and releases all demands and causes of action for offsets and
payments in connection with the offsets and payments in connection with the said indebtedness. If
all or any portion of the proceeds of the loan evidenced by the Note or of any other secured
indebtedness has been advanced for the purpose of paying the purchase price for all or a part of
the Mortgaged Premises, no vendor’s lien is waived; and Beneficiary shall have, and is hereby
granted, a vendor’s lien on the Mortgaged Premises as cumulative additional security for the
secured indebtedness. Beneficiary may foreclose under this Deed of Trust or under the vendor’s
lien without waiving the other or may foreclose under both.

     Section 7-18. Waiver of Deficiency Statute. In the event an interest in any of the
Mortgaged Premises is foreclosed upon pursuant to a judicial or nonjudicial foreclosure sale,
Grantor agrees as follows: Notwithstanding the provisions of Texas Property Code Sections 51.003,
51.004 and 51.005 (as the same may be amended from time to time), and to the extent permitted by
law, Grantor agrees that Beneficiary shall be entitled to seek a deficiency judgment from Grantor
in the amount by which the indebtedness secured hereby exceeds the amount for which the Mortgaged
Premises was sold pursuant to judicial or nonjudicial foreclosure sale. Grantor expressly
recognizes that this section constitutes a waiver of the above-cited provisions of the Texas
Property Code which would otherwise permit Grantor to present competent evidence of the fair market
value of the Trust Property as of the date of foreclosure and offset against any deficiency the
amount by which the foreclosure sale price is determined to be less than such fair market value.
Grantor further recognizes and agrees that this waiver creates an irrefutable presumption that the
foreclosure sale price is equal to the fair market value of the Mortgaged Premises for the purposes
of calculating deficiencies owed by Grantor and others against whom recovery of deficiency is
sought. Notwithstanding anything to the contrary in this section, Beneficiary’s rights to seek a
deficiency judgment are limited by the exculpation provisions of the Note.

     Section 7-19. Waiver of Co-Tenancy Rights. Grantor, and each party comprising
Grantor, hereby waives all of their respective co-tenancy rights provided at law or in equity for
tenants in common between, among or against each other, including, without limitation, any right to
partition the Mortgaged Premises

     Section 7-20. WAIVER OF CONSUMER RIGHTS UNDER TEXAS DECEPTIVE TRADE PRACTICES — CONSUMER
PROTECTION ACT. Grantor represents and
acknowledges that (i) it is a “business consumer” as defined in The Texas Deceptive Trade
Practices — Consumer Protection Act, (Section 17.41 et seq. Business and Commerce Code) as the
same may be amended, supplemented, replaced or succeeded from time to time (the “Act”), (ii) it has
knowledge and experience in financial and business matters that enable it to evaluate the merits
and risks of a transaction, (iii) it is not in a significantly disparate bargaining position

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with
respect to Lender and (iv) it has been represented by counsel of its selection in connection with
the Loan and the transactions contemplated thereby or under any of the other Loan Documents.
NOTWITHSTANDING THE FOREGOING, TO THE EXTENT THE ACT APPLIES, AFTER CONSULTATION WITH AN ATTORNEY
OF ITS SELECTION, GRANTOR HEREBY VOLUNTARILY WAIVES THE PROVISIONS OF THE ACT WHICH GIVE CONSUMERS
SPECIAL RIGHTS AND PROTECTIONS WITH RESPECT TO THE LOAN AND THE TRANSACTIONS CONTEMPLATED UNDER ANY
OF THE LOAN DOCUMENTS.

     Section 7-21. ERISA. Grantor hereby represents, warrants and agrees that as of the
date hereof, none of the investors in or owners of the Grantor is an employee benefit plan as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974 as amended, a plan
as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986 as amended, nor an entity the
assets of which are deemed to include plan assets pursuant to Department of Labor regulation
Section 2510.3-101 (the “Plan Asset Regulation”). Grantor further represents, warrants and agrees
that at all times during the term of the Note, the Grantor shall satisfy an exception to the Plan
Asset Regulation, such that the assets of the Grantor shall not be deemed to include plan assets.
If at any time during the entire term of the Note any of the investors in or owners of the Grantor
shall include a plan or entity described in the first sentence of this Section, Grantor shall as
soon as reasonably possible following an investment by such a plan or entity, provide Beneficiary
with an opinion of counsel reasonably satisfactory to Beneficiary indicating that the assets of the
Grantor are not deemed to include plan assets pursuant to the Plan Asset Regulation. In lieu of
such an opinion, the Beneficiary may in its sole discretion accept such other assurances from the
Grantor as are necessary to satisfy Beneficiary in its sole discretion that the assets of the
Grantor are not deemed to include plan assets pursuant to the Plan Asset Regulation. Grantor
understands that the representations and warranties herein are a material inducement to Beneficiary
in the making of the loan evidenced by the Note, without which Beneficiary would have been
unwilling to proceed with the closing of the loan.

     Section 7-22. Covenants Running with the Land. All obligations contained in this
Deed of Trust and the other Loan Documents are intended by Grantor, Beneficiary, and Trustee to be,
and shall be construed as, covenants running with the Mortgaged Premises until the lien of this
Deed of Trust has been fully released by Beneficiary.

     Section 7-23. Certain Disclosures. Beneficiary (and its mortgage servicer and their
respective assigns) shall have the right to disclose in confidence such financial information
regarding Grantor, any guarantor or the Mortgaged Premises as may be necessary (i) to complete any
sale or attempted sale of the Note or participations in the loan (or any transfer of the mortgage
servicing thereof) evidenced by the Note and the Loan Documents, (ii) to service the Note or (iii)
to furnish information concerning the payment status of the Note to the holder or beneficial owner
thereof, including, without limitation, all Loan Documents, financial
statements, projections, internal memoranda, audits, reports, payment history, appraisals and
any and all other information and documentation in the Beneficiary’s files (and such servicer’s
files) relating to the Grantor, any guarantor and the Mortgaged Premises. This authorization shall
be irrevocable in favor of the Beneficiary (and its mortgage servicer and their respective
assigns).

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     Section 7-24. Integration. This agreement or instrument and the other Loan Documents
constitute the entire agreement of the parties with respect to the transactions that form the
subject matter thereof, and there are no other agreements, express or implied, with respect to such
transactions. Any and all prior or contemporaneous commitments, term sheets, negotiations,
agreements or representations have been merged into this agreement or instrument and the other Loan
Documents and are hereby superseded.

     Section 7-25. No Merger. It being the desire and intention of the parties hereto
that this Deed of Trust and the lien hereof do not merge in fee simple title to the Mortgaged
Premises, it is hereby understood and agreed that should the Beneficiary acquire an additional or
other interests in or to the Mortgaged Premises or the ownership thereof, then, unless a contrary
intent is manifested by the Beneficiary as evidenced by an express statement to that effect in
appropriate document duly recorded, this Deed of Trust and the lien hereof shall not merge in the
fee simple title, toward the end that this Deed of Trust may be foreclosed as if owned by a
stranger to the fee simple title. Further, it is not the intention of the parties that any
obligation of Grantor to pay or to reimburse Beneficiary for costs and expenses, including
attorneys’ fees and costs, be merged in any foreclosure judgment or the conclusion of any other
enforcement action, and all such obligations shall survive the entry of any foreclosure judgment or
the conclusion of any other enforcement action.

     THE PARTIES HERETO, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL,
KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY
LITIGATION BASED ON OR ARISING OUT OF THIS AGREEMENT OR INSTRUMENT, OR ANY RELATED INSTRUMENT OR
AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY COURSE OF CONDUCT, DEALING,
STATEMENTS, WHETHER ORAL OR WRITTEN, OR ACTION OF ANY PARTY HERETO. NO PARTY SHALL SEEK TO
CONSOLIDATE BY COUNTERCLAIM OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED
WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS
SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY ANY PARTY HERETO EXCEPT
BY A WRITTEN INSTRUMENT EXECUTED BY ALL PARTIES.

     Grantor acknowledges receipt of a copy of this instrument at the time of the execution
thereof.

     The undersigned hereby acknowledges that, except as incorporated in writing in the Loan
Documents, there are not, and were not, and no persons are or were authorized to make, any
representations, understandings, stipulations, agreements or promises, oral or written, with
respect to the matters addressed in the Loan Documents.

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     THE WRITTEN LOAN DOCUMENTS AND THE ENVIRONMENTAL INDEMNIFICATION AGREEMENT REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     As used herein, the term “knowledge” means the conscious awareness of facts or other
information after inquiry reasonable for an institutional owner of properties similar to the
Mortgaged Premises.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, Grantor has duly executed this Deed of Trust on the day and year
first above written.

	 	 	 	 	 
	 	Grantor:

COLE MT AUSTIN TX, LLC, a Delaware 

limited liability company

 	 
	 	By:  	Cole REIT Advisors III, LLC, a Delaware

 limited liability company, its Manager
 	 

	 	 	 	 	 
	 	By:  	                                                   /s/ Todd J. Weiss
 	 
	 	 	Todd J. Weiss, Senior Vice President 	 
	 	 	 	 
	 

NOTICE OF INDEMNIFICATION: GRANTOR HERBY ACKNOWLEDGES AND AGREES THAT THIS DEED OF TRUST CONTAINS
CERTAIN INDEMNIFICATION WHICH, IN CERTAIN CIRCUMSTANCES, COULD INCLUDE AN INDEMNIFICATION BY
GRANTOR OF BENEFICIARY OR TRUSTEE FROM CLAIMS ARISING AS A RESULT OF SUCH BENEFICIARY’S OR
TRUSTEE’S OWN NEGLIGENCE.

	 	 	 	 	 	 	 
	STATE OF ARIZONA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS:
	COUNTY OF MARICOPA

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on this 26th day of
January 2010, by Todd J. Weiss, Senior Vice President of Cole REIT Advisors III, LLC, a Delaware
limited liability company, which is the manager of COLE MT AUSTIN TX, LLC, a Delaware limited
liability company, on behalf of said limited liability company.

	 	 	 	 	 
	 	 	 
	 	                                           /s/ Taryn M. Hernandez
 	 
	 	Name:  	Taryn M. Hernandez 	 
	 	Notary Public

My Commission Expires: April 23, 2012

Seal: 	 
	 

[SIGNATURE PAGE TO DEED OF TRUST]

[DEED OF TRUST]

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