Document:

Unassociated Document

    Exhibits
10.1

    PROMISSORY
NOTE

     

    Place of
Delivery:  New York, New York

     

    
      	
              $30,000,000.00

            	
              Date:  July
      27, 2010

            

    

     

    FOR VALUE
RECEIVED, AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware
limited partnership (the “Company”), promises
to pay to the order of CAPITAL ONE, N.A., a national banking association (the
“Lender”) the
principal amount of THIRTY MILLION AND NO/100 DOLLARS ($30,000,000.00) or, if
less, the aggregate amount of the Loans made by the Lender to the Company
pursuant to the Credit Agreement which is outstanding on the Maturity
Date.  Capitalized terms used but not defined herein are defined in
the Credit Agreement.

     

    The
Company also promises to make principal payments and interest on the unpaid
principal amount hereof from the date hereof until paid at the rates and at the
times which shall be determined in accordance with the provisions of the Credit
Agreement.

     

    All
payments of principal and interest in respect of this Note shall be made in
lawful money of the United States of America in same day funds at the Payment
Office.  Until notified of the transfer of this Note, the Company
shall be entitled to deem the Lender or such person who has
been so identified by the transferor in writing to the Company as the holder of
this Note, as the owner and holder of this Note.  The Lender and any subsequent
holder of this Note agrees that before disposing of this Note, or any part
hereof, it will make a notation hereon of all principal payments previously made
hereunder and of the date to which interest hereon has been paid on the schedule
attached hereto, if any; provided, however, that the
failure to make notation of any payment made on this Note shall not limit or
otherwise affect the obligation of the Company hereunder with respect to
payments of principal or interest on this Note.

     

    This Note
is referred to in, and is entitled to the benefits of, the Credit Agreement
dated as of July 27, 2010 (the “Credit Agreement”)
among the Company, the financial institutions named therein, and CAPITAL ONE,
N.A, as Agent.  The Credit Agreement, among other things,
(i) provides for the making of loans (the “Loans”) by the
Lender to the
Company from time to time in an aggregate amount first above mentioned, the
indebtedness of the Company resulting from each such Loan being evidenced by
this Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for mandatory and
optional prepayments on account of principal hereof and certain principal
payments prior to the maturity hereof upon the terms and conditions therein
specified.

     

    The terms
of this Note are subject to amendment only in the manner provided in the Credit
Agreement.

     

    The
obligation of the Company to pay the principal of and interest on this Note at
the place, at the respective times, and in the currency and manner prescribed by
the Credit Agreement is absolute and unconditional.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
Company promises to pay all costs and expenses, including reasonable attorneys’
fees, incurred in the collection and enforcement of this Note.  The
Company hereby waives diligence, presentment, and protest, and except as
provided in the Credit Agreement, demand and notice of every kind and, to the
full extent permitted by law, the right to plead any statute of limitations as a
defense to any demand hereunder.

     

    This Note
shall be governed by, and construed in accordance with, the laws of the state of
New York without giving effect to its choice of law doctrine.

     

    IN
WITNESS WHEREOF, the Company has caused this Note to be executed and delivered
by its duly authorized officer, as of the date and place first above
written.

     

    
      
        	 
      	
                AMERICAN
      REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware limited
      partnership

              
	 
      	 
      
	 
      	
                By:

              	
                American
      Realty Capital Trust Inc., a Maryland corporation, its general
      partner

              
	 
      	 
      	 
      
	 
      	 
      	
                By:

              	/s/
      William M. Kahane
	 
      	 
      	 
      	
                Name:
      William M. Kahane

              
	 
      	 
      	 
      	
                Title:
      President

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TRANSACTIONS
ON NOTE

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Date

                            	 	
                              Amount of

                              Loan

                              Made

                            	 	 	
                              Amount of

                              Principal

                              Paid

                            	 	 	
                              Principal

                              Balance

                            	 	 	
                              Interest

                              Paid

                            	 	 	
                              Interest

                              Paid

                              Through

                            	 	 	
                              Notation

                              Made ByUnassociated Document

    Exhibits
10.2

    CREDIT
AGREEMENT

     

    This
CREDIT AGREEMENT is entered into as of July 27, 2010, among AMERICAN REALTY CAPITAL OPERATING
PARTNERSHIP, L.P., a Delaware limited partnership (the “Borrower”), the
lenders from time to time party to this Agreement (the “Lenders”), CAPITAL ONE, N.A., as one of
the Lenders and L/C Issuer (“Capital One”), and
CAPITAL ONE, N.A., as
Agent (the “Agent”).

     

    WHEREAS,
the Lenders have agreed to make available to the Borrower a revolving credit
facility upon the terms and conditions set forth in this Agreement.

     

    NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants
contained herein, the parties hereby agree as follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

    1.01      Defined
Terms.  In addition to the terms defined elsewhere in this
Agreement, the following terms have the following meanings:

     

    “Affiliate” means, as
to any Person, any other Person which, directly or indirectly, is in control of,
is controlled by, or is under common control with, such Person.  A
Person shall be deemed to control another Person if the controlling Person
possesses, directly or indirectly, the power to direct or cause the direction of
the management and policies of the other Person, whether through the ownership
of voting securities, by contract or otherwise.

     

    “Agent” means Capital
One, N.A., in its capacity as Agent, and any successor Agent appointed
hereunder.

     

    “Agent-Related
Persons” has the meaning specified in Section
9.03.

     

    “Aggregate Commitment”
means the combined Commitments of the Lenders, in the amount of up to
$30,000,000.

     

    “Agreement” means this
Credit Agreement, as amended, supplemented or modified from time to
time.

     

    “Applicable Margin”
means 3.25%, as the same may be increased pursuant to Section 6.22
hereof.

     

    “Appraisal” means a
real estate appraisal providing an assessment of the fair market value of a
Property, taking into account any and all Estimated Remediation Costs, that is
(a) conducted on an “as-is” basis in accordance with the Uniform Standards
of Professional Appraisal Practice (as promulgated by the Appraisal Standards
Board of the Appraisal Foundation), all Requirements of Law applicable to the
Agent, FIRREA, and the applicable internal policies of the Agent, and
(b) undertaken by an independent M.A.I appraisal firm engaged by the Agent
and satisfactory to the Agent.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Appraised Value” as
to any Property shall, as of any date of determination, be the “as-is” appraised
value of such Property reflected in the Appraisal thereof most recently
delivered to and approved by the Agent pursuant to Section
2.16(a).

     

    “Approved Ground
Lease” means, at any time, any ground lease (whether related to an
interest in land alone or an interest in land and the improvements located
thereon) with respect to any Property which is on terms and conditions that are
acceptable to the Agent, and: (a) under which a Subsidiary Guarantor is the
lessee or holds equivalent rights (including, without limitation, as a
sublessee), (b) that has a remaining term of no less than forty (40) years
(assuming the exercise of any applicable extension options that are exercisable
at the Subsidiary Guarantor’s option) or be otherwise subject to a purchase
option in favor of the Subsidiary Guarantor that is exercisable in the sole
discretion of the Subsidiary Guarantor and is for a nominal purchase price, (c)
under which any required rental payment, principal or interest payment or other
payment due under such lease or sublease, as applicable, from the Subsidiary
Guarantor to the ground lessor is not more than thirty (30) days past due, (d)
where no party to such lease or sublease, as applicable, is the subject of an
Insolvency, (e) where the Subsidiary Guarantor’s interest in the Property or the
lease or sublease, as applicable, is not subject to any Lien other than a
Permitted Exception; (f) containing provisions which create an obligation of the
lessor to give the holder of any mortgage lien on such leased property written
notice of any defaults on the part of the Subsidiary Guarantor and agreement of
such lessor that such lease will not be terminated until such holder has had a
reasonable opportunity to cure or complete foreclosures, and fails to do so; (g)
containing provisions which permit the use of such Property for its then-current
use; (h) containing provisions which provide for such other rights
customarily required by mortgagees making a loan secured by the interest of the
holder of the leasehold estate demised pursuant to a ground lease; and (i) under
which there exists no default or event of default by a ground lessor which
default or event of default has caused or otherwise resulted in or could
reasonably be expected to cause or otherwise result in any material interference
with the Subsidiary Guarantor’s occupancy or other rights under the applicable
ground lease.

     

    “Assignee” has the
meaning specified in Section
10.08(a).

     

    “Assignment and
Acceptance” has the meaning specified in Section
10.08(a).

     

    “Assumed Interest
Rate” shall mean an annual rate equal to seven percent (7%).

     

    “Attorney Costs” means
all reasonable fees and disbursements of any law firm or other external
counsel.

     

    “Auto-Extension Letter of
Credit” has the meaning specified in Section
2.04(b)(iii).

     

    “Average Balance
Requirement” has the meaning specified in Section
6.22.

    
      
         

      

      
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    “Borrower Accounts”
has the meaning specified in Section
2.13(a).

     

    “Borrowing Base” shall
mean during any fiscal quarter or portion thereof the lesser of:

     

    (a)           The
Aggregate Commitment;

     

    (b)           fifty
percent (50%) of the most recently obtained Appraised Values of all Borrowing
Base Properties; and

     

    (c)           the
sum of (i) fifty-five percent (55%) of the most recently obtained Appraised
Values of all Investment Grade Borrowing Base Properties and (ii) forty-five
percent (45%) of the most recently obtained Appraised Values of all
Non-Investment Grade Borrowing Base Properties.

     

    “Borrowing Base
Deliverables” means, with respect to each Property for which the Borrower
seeks approval as a “Borrowing Base Property,” the following items, subject to
such exceptions, deferrals and waivers as may be agreed in writing by the
Agent:

     

    (a)           evidence
that counterparts of the Collateral Documents related to such Property have been
duly executed, acknowledged and delivered and are in form suitable for filing or
recording in all filing or recording offices that the Agent may deem necessary
or desirable in order to create a valid first and subsisting Lien on the
property described therein in favor of the Agent for the benefit of the Lenders
and that all filing, documentary, stamp, intangible and recording taxes and fees
have been paid;

     

    (b)           a
Title Policy with respect to the applicable Property, together with endorsements
and in amounts acceptable to the Agent (but in no event greater than the
Appraised Value of the applicable Property), issued, coinsured and reinsured by
title insurers reasonably acceptable to the Agent, insuring the Mortgages to be
valid first and subsisting Liens on the property described therein, free and
clear of all defects (including, but not limited to, mechanics’ and
materialmen’s Liens) and encumbrances, excepting only Permitted Exceptions and
other Liens approved by the Agent and providing for such other affirmative
insurance (including endorsements for future advances under the Loan Documents,
for mechanics’ and materialmen’s Liens and for zoning of the applicable
property) and such coinsurance and direct access reinsurance as the Agent may
deem necessary or desirable and as may be available in the state where such
Property is located;

     

    (c)           American
Land Title Association/American Congress on Surveying and Mapping form surveys,
for which all necessary fees (where applicable) have been paid, and dated as of
a date satisfactory to the Agent, certified to the Agent and the issuer of the
Title Policies in a manner satisfactory to the Agent by a land surveyor duly
registered and licensed in the States in which the property described in such
surveys is located and acceptable to the Agent, showing all buildings and other
improvements, any off-site improvements, the location of any easements, parking
spaces, rights of way, building set-back lines and other dimensional regulations
and the absence of encroachments, either by such improvements or on to such
property, and other defects, other than encroachments and other defects
acceptable to the Agent; provided, however, that Agent shall accept a survey
provided by Borrower that is dated within one (1) year of the date upon which
Borrower requests the approval of the Property as a Borrowing Base Property,
provided that the Title Insurer agrees to “insure over” the lack of a more
recent survey for the applicable Property and the other conditions of this
clause (c) are otherwise complied with;

    
      
         

      

      
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    (d)           for
any Property which has an Appraised Value in excess of $2,000,000, property
condition, engineering, soils and other reports as to such Property from
professional firms acceptable to the Agent, in each case in form and substance
acceptable to the Agent; provided, however, Agent agrees to accept a reliance
letter from the applicable professional firms for any such reports that have
been prepared within two (2) years of the date that Borrower requests approval
of the Property as “Borrowing Base Property”;

     

    (e)           copies
of the Net Lease with respect to such Property (and any other Lease in existence
with respect to such Property) together with (i) estoppel certificates from all
tenants under Leases and (ii) if required by any Lease or the Agent,
subordination, non-disturbance and attornment agreements from the tenants under
such Leases, in each case in form and substance of that required by the
applicable Lease or, if the Lease does not so provide, in form and substance
acceptable to Agent in its reasonable discretion;

     

    (f)   
        to the extent the applicable
Property is subject to a ground lease pursuant to which a Subsidiary Guarantor
is the ground lessee, a copy of such ground lease (which must be an Approved
Ground Lease) and estoppel and consent agreements executed by each of the ground
lessors with respect to any such Approved Ground Lease, along with (1) a
memorandum of lease in recordable form with respect to such leasehold interest,
executed and acknowledged by the owner of the affected real property, as lessor,
or (2) evidence that the applicable Approved Ground Lease with respect to
such leasehold interest or a memorandum thereof has been recorded in all places
necessary or desirable, in the Agent’s judgment, to give constructive notice to
third-party purchasers of such leasehold interest, or (3) if such leasehold
interest was acquired or subleased from the holder of a recorded leasehold
interest, the applicable assignment or sublease document, executed and
acknowledged by such holder, in each case in form sufficient to give such
constructive notice upon recordation and otherwise in form satisfactory to the
Agent;

     

    (g)           evidence
of the insurance required by the terms of the applicable Mortgage related to
such Property, in each case naming the Agent (for the benefit of the Lenders) as
additional insured (in the case of liability insurance) or loss payee (in the
case of hazard insurance); provided, however, Agent agrees to waive the
requirement that Agent be named as an additional insured and/or loss payee for
Borrowing Base Properties comprising not more than $5,000,000 of the Borrowing
Base in the aggregate if (a) the tenant of any such Borrowing Base Property
self-insures such Borrowing Base Property and (b) after reasonable efforts from
Borrower, such tenant is unwilling or unable to name the Agent as an additional
insured and/or loss payee (such waiver, an “Insurance
Waiver”);

     

    
      
         

      

      
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    (h)           an
Appraisal of such Property (a complete copy of which shall be provided to
Borrower), in each case dated within thirty (30) days of the Closing Date (or
the requested date of approval) and in form, substance and from an appraiser
acceptable to the Agent (such appraiser to be engaged by the Agent and paid for
by the Borrower);

     

    (i)           evidence
as to (i) whether such Property is in an area designated by the Federal
Emergency Management Agency as having special flood or mud slide hazards (a
“Flood Hazard
Property”) and (ii) if such Property is a Flood Hazard Property,
(A) whether the community in which such Property is located is
participating in the National Flood Insurance Program, (B) the Borrower's
written acknowledgment of receipt of written notification from the Agent as to
the fact that such Property is a Flood Hazard Property and as to whether the
community in which each such Flood Hazard Property is located is participating
in the National Flood Insurance Program and (C) copies of insurance
policies or certificates of insurance evidencing flood insurance satisfactory to
the Agent and naming the Agent as loss payee on behalf of the
Lender;

     

    (j)     
      if no zoning endorsement has been issued
with respect to the Title Policy, then evidence satisfactory to the Agent that
such Property, and the uses of such Property, are in compliance in all material
respects with all applicable zoning laws;

     

    (k)           an
environmental site assessment with respect to such Property issued not more than
six months (or such other longer period as may be acceptable to the Agent) prior
to the date on which such Property would be accepted as a Borrowing Base
Property showing that such Property is free from Hazardous Materials in
violation of applicable law and otherwise showing conditions which are
acceptable to the Agent, and reliance letters with respect to same in favor of
Agent in form acceptable to Agent;

     

    (l)      
     evidence that all other action that the Agent may
deem reasonably necessary or desirable in order to create valid first and
subsisting Liens on the property described in the applicable Mortgage has been
taken;

     

    (m)          with
respect to Properties located in California, a seismic report with respect
thereto dated as of a date acceptable to the Agent and earthquake insurance to
the extent required by Agent; and

     

    (n)           all
documentation required in order for the Subsidiary Guarantor which owns such
Property to comply with the provisions of clause (c) of the definition of
“Borrowing Base Property.”

     

    “Borrowing Base
Property” means, as of any date of determination, each
Property:

     

    (a)           that
is set forth on Schedule 2.16 hereto
(as such schedule may be updated from time to time in accordance with the terms
hereof in each case to the extent that such Property has not otherwise been
removed as a “Borrowing Base Property” pursuant to the other criteria for
qualification as such set forth in this definition and the other provisions of
this Agreement);

    
      
         

      

      
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    (b)           that
is subject to a Net Lease approved by the Agent, and the tenant under such Net
Lease is not in default of any of its obligations thereunder;

     

    (c)           that
is 100% owned in fee simple by, or 100% ground leased pursuant to an Approved
Ground Lease by a Subsidiary of the Borrower that is (i) controlled by Borrower,
(ii) a Single Purpose Entity, and (iii) upon the Closing Date, a Subsidiary
Guarantor; or that shall have become a Subsidiary Guarantor in accordance with
Section
6.20;

     

    (d)           with
respect to which neither such Property nor any interest of any applicable
Subsidiary Guarantor therein (including the lease thereof or any indirect
interest owned by the Borrower), is subject to any Lien other than Permitted
Exceptions;

     

    (e)           (i)
that is not the subject of any condemnation proceeding(s) as of such date that
is or are material to the profitable operation of such Property and has not,
since initial qualification as a “Borrowing Base Property” hereunder been
subject to any such condemnation; (ii) that is not as of such date and has not,
since its initial qualification as a “Borrowing Base Property” hereunder, been
affected by any casualty loss which has not been restored, repaired or replaced
as required under the terms of the Loan Documents within no more than one
hundred twenty (120) days after the occurrence of such casualty loss (provided
that, after giving effect to the proceeds of any rental loss or business
interruption insurance proceeds that are payable with respect to the period
during which such restoration and repair shall be continuing there shall be no
material adverse impact upon the financial operation of such Borrowing Base
Property during such period); provided, however, any casualty to any Borrowing
Base Property subject to an Insurance Waiver the cost of which to restore,
repair or replace is expected to exceed $100,000 shall immediately result in
such Borrowing Base Property no longer qualifying as a Borrowing Base Property
hereunder; and (iii) as to which there has not occurred as of such date or since
its initial qualification as a “Borrowing Base Property” hereunder any material
adverse change in the environmental condition thereof from that described in the
environmental site assessment that was delivered as part of the Borrowing Base
Deliverables for such property at the time it was first added as a Borrowing
Base Property; it being understood and agreed that Borrower must give Agent
prompt notice of any casualty or condemnation proceeding with respect to any
Borrowing Base Property;

     

    (f)           that
is being maintained and preserved in good working order and condition (ordinary
wear and tear excepted) and is free of all structural defects;

     

    (g)           that
is located in the United States of America; and

     

    (h)           with
respect to which the Borrower has delivered the Borrowing Base Deliverables and
has obtained the written approval of the Agent.

     

    “Borrowing Notice”
means a notice given by the Borrower to the Agent pursuant to Section 2.03, in
substantially the form of Exhibit A.

     

    “Business Day” means
any day other than a Saturday, Sunday or other day on which commercial lenders
are authorized or required by law to close in New York City.

     

    
      
         

      

      
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    “Capital Adequacy
Regulation” means any guideline, request or directive of any central bank
or other Governmental Authority, or any other law, rule or regulation, whether
or not having the force of law, regarding capital adequacy of any Lender or of
any corporation controlling a Lender.

     

    “Capital Expenditures”
means, for any period and with respect to any Person, the aggregate of all
expenditures by such Person for the acquisition or leasing of fixed or capital
assets or additions to equipment (including replacements, capitalized repairs
and improvements during such period) which should be capitalized under GAAP on a
consolidated balance sheet of such Person.  For the purpose of this
definition, the purchase price of equipment which is purchased simultaneously
with the trade-in of existing equipment owned by such Person or with insurance
proceeds shall be included in Capital Expenditures only to the extent of the
gross amount of such purchase price less the credit granted by the seller of
such equipment for such equipment being traded in at such time, or the amount of
such proceeds, as the case may be.

     

    “Capital Lease” means
any leasing or similar arrangement which, in accordance with GAAP, is classified
as a capital lease.

     

    “Capital Lease
Obligations” means, with respect to any Person, the amount at which such
Person's obligations under Capital Leases are required to be carried on the
balance sheet of such Person in accordance with GAAP.

     

    “Capital One” means
Capital One, N.A., in its capacity as a Lender.

     

    “Capital One Proposed
Terms” has the meaning specified in Section
6.21.

     

    “Cash Equivalents”
means:

     

    (a)           securities
issued or fully guaranteed or insured by the United States Government or any
agency thereof and backed by the full faith and credit of the United States
having maturities of not more than six months from the date of
acquisition;

     

    (b)           certificates
of deposit, time deposits, demand deposits, eurodollar time deposits, repurchase
agreements, reverse repurchase agreements, or bankers' acceptances, having in
each case a tenor of not more than three (3) months, issued by any Lender, or by
any U.S. commercial lender (or any branch or agency of a non-U.S. bank licensed
to conduct business in the U.S.) having combined capital and surplus of not less
than $100,000,000 whose short-term securities are rated at least A-1 by Standard
& Poor's Corporation and P-1 by Moody's Investors Service, Inc.; provided, however, such
Investments may not be made in amounts in excess of $1,000,000 with any bank
that is owed Indebtedness in excess of $1,000,000 by the Borrower (other than
the Obligations) unless such bank waives in writing (in form and substance
satisfactory to the Requisite Lenders) its right to set-off such Investment
against such Indebtedness;

     

    (c)           demand
deposits on deposit in accounts maintained at commercial banks having membership
in the FDIC and in amounts not exceeding the maximum amounts of insurance
thereunder; and

     

    
      
         

      

      
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    (d)           commercial
paper of an issuer rated at least A-1 by Standard & Poor's Corporation or
P-1 by Moody's Investors Service, Inc. and in either case having a tenor of not
more than three (3) months.

     

    “CERCLA” has the
meaning specified in the definition of “Environmental Laws”.

     

    “Change of Control”
means an event or series of events by which:

     

    (a)           during
the term of this Agreement, William M. Kahane and Nicholas Schorsch cease to be
members of the board of directors or other equivalent governing body of the
REIT; or

    

    (b)           the
Borrower ceases to have the sole responsibility for managing and administering
the day-to-day business and affairs of any Subsidiary Guarantor; or otherwise
ceases to Control each such Subsidiary Guarantor; or ceases to own, directly or
indirectly, the majority or controlling ownership interests in and rights to
distributions from each Subsidiary Guarantor; or

    

    (c)           the
REIT ceases to be the sole general partner of Borrower.

     

     “Clearing Account” has
the meaning specified in Section
6.18.

     

    “Clearing Account
Agreement” means that certain Deposit Account Control Agreement, dated as
of the date hereof, among Borrower, Agent and Capital One, as clearing
bank.

     

    “Closing Date” means
the date on which all conditions precedent set forth in Section 4.01 are
satisfied or waived by the Agent.

     

    “Code” means the
Internal Revenue Code of 1986, as amended from time to time, and any regulations
promulgated thereunder.

     

    “Collateral” means all
property interests, now owned or hereafter acquired, of the Borrower or the
Subsidiary Guarantors in or upon which a Lien now or hereafter exists in favor
of the Agent on behalf of the Lenders under the Collateral Documents, following
satisfaction of the conditions precedent set forth in Section 4.01 or 4.02 with respect
thereto.

     

    “Collateral
Assignments” means collectively an assignment of leases and rents,
substantially in the form of Exhibit B, and
an assignment of warranties, personal property leases and management and service
contracts, substantially in the form of Exhibit C, in
each case with such revisions as may be proposed by local counsel to the Agent
and acceptable to the Agent.

     

    “Collateral Debt
Yield” means the percentage produced by dividing Net Operating Income for
the twelve (12) month period ending on the last day of the most recent calendar
quarter (as adjusted by annualizing any net operating income derived from
Properties acquired during such 12-month period) by the Outstanding Amount as
determined as of the end of the most recent calendar quarter.

     

    
      
         

      

      
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    “Collateral Documents”
means, collectively, (a) the Mortgages, the Collateral Assignments, the
Environmental Indemnity Agreements, and all security agreements, lease
assignments and other similar agreements between the Borrower or the Subsidiary
Guarantors and the Lenders or the Agent for the benefit of the Lenders, now or
hereafter delivered to the Lenders or the Agent pursuant to or in connection
with the transactions contemplated hereby, (b) all financing statements (or
comparable documents) now or hereafter filed in accordance with the UCC (or
comparable law) against the Borrower or the Subsidiary Guarantors as debtor in
favor of the Lenders or the Agent for the benefit of the Lenders as secured
party, and (c) any amendments, supplements, modifications, renewals,
replacements, consolidations, substitutions and extensions of any of the
foregoing.

     

    “Commitment” has the
meaning specified in Section
2.01(a).

     

    “Commitment
Percentage” means, as to any Lender, the percentage equivalent of such
Lender's Commitment divided by the Aggregate Commitment.

     

    “Consolidated Debt
Yield” means the percentage produced by dividing Consolidated Net
Operating Income for the twelve (12) month period ending on the last day of the
most recent calendar quarter (as adjusted by annualizing any net operating
income derived from Properties acquired during such 12-month period) by Total
Indebtedness as determined as of the end of the most recent calendar
quarter.

     

    “Consolidated Net Operating
Income” means (a) all gross revenues recorded by the Borrower in
accordance with GAAP during a particular period (including, without limitation,
payments received from insurance on account of business or rental interruption
and condemnation proceeds from any temporary use or occupancy, in each case to
the extent attributable to the period for which such Consolidated Net Operating
Income is being determined, but excluding any proceeds from the sale or other
disposition of any Property; or from any financing or refinancing of any
Property; or from any condemnation of any part or all of any Property (except
for temporary use or occupancy); or on account of a casualty to any Property
(other than payments from insurance on account of business or rental
interruption); or any security deposits paid under leases of all or a part of
any Property, unless forfeited by tenants; and similar items or transactions the
proceeds of which under GAAP are deemed attributable to capital), minus (b) all
reasonable and customary property maintenance and repair costs, leasing and
administrative costs, management fees (assumed to be three percent (3%) of gross
receipts) and real estate taxes and insurance premiums recorded by the Borrower
in accordance with GAAP during such period and minus (c) all Capital
Expenditures recorded by the Borrower in accordance with GAAP during such
period.  There shall be no deduction for any expense not involving a
cash expenditure, such as depreciation.

     

    “Contingent
Obligation” means, as to any Person, (a) any Guaranty Obligation of
that Person, and (b) any direct or indirect obligation or liability,
contingent or otherwise, of that Person, (i) in respect of any letter of
credit or similar instrument issued for the account of that Person or as to
which that Person is otherwise liable for reimbursement of drawings,
(ii) as a partner or joint venturer in any partnership or joint venture,
(iii) to purchase any materials, supplies or other property from, or to
obtain the services of, another Person if the relevant contract or other related
document or obligation requires that payment for such materials, supplies or
other property, or for such services, shall be made regardless of whether
delivery of such materials, supplies or other property is ever made or tendered,
or such services are ever performed or tendered, or (iv) incurred pursuant
to any Rate Contract.  Except as provided in the definition of “Total
Indebtedness” below, the amount of any Contingent Obligation shall (subject, in
the case of Guaranty Obligations, to the last sentence of the definition of
“Guaranty Obligation”) be deemed equal to the maximum reasonably anticipated
liability in respect thereof.

     

    
      
         

      

      
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    “Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, undertaking, contract, mortgage, deed of
trust, indenture, or other instrument, document or agreement to which such
Person is a party or by which it or any of its property is bound.

     

    “Contribution
Agreement” means the Contribution Agreement by and among the Subsidiary
Guarantors, substantially in the form of Exhibit K
attached hereto, including any accession agreement that may be delivered
thereunder.

     

    “Controlled Group”
means the Borrower and all Persons (whether or not incorporated) under common
control or treated as a single employer with the Borrower pursuant to Section
414(b), (c), (m) or (o) of the Code.

     

    “Debt Service Coverage
Ratio” shall mean the ratio determined for each fiscal quarter during the
term of the Loans by dividing Rolling 12-Month Cash Flow (as adjusted by
annualizing any net operating income derived from Properties acquired during
such 12-month period) for all Borrowing Base Properties by Pro Forma Debt
Service.

     

    “Default” means any
event or circumstance which, with the giving of notice, the lapse of time, or
both, would (if not cured or otherwise remedied) constitute an Event of
Default.

     

    “Disposition” means
the sale, lease, conveyance, transfer or other disposition of (whether in one or
a series of transactions) any property, including accounts and notes receivable
(with or without recourse) and sale-leaseback transactions.

     

    “Dollars”, “dollars” and “$” each mean lawful
money of the United States.

     

    “Domestic Lending
Office” means, with respect to each Lender, the office of that Lender
designated as such on the signature pages hereto or such other office of a
Lender as it may from time to time specify to the Borrower and the
Agent.

     

    “EBITDA” means, for
any period, for any Person, determined in accordance with GAAP, the sum of (a)
the net income (or net loss) plus (b) all amounts
treated as expenses for depreciation, interest and the amortization of
intangibles of any kind to the extent included in the determination of such net
income (or loss), plus (c) all accrued
taxes on or measured by income to the extent included in the determination of
such net income (or loss); provided, however, that net
income (or loss) shall be computed for these purposes without giving effect to
extraordinary losses or extraordinary gains.

     

    
      
         

      

      
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    “Eligible Assignee”
means (a) a commercial lender organized under the laws of the United States, or
any state thereof, and having a combined capital and surplus of at least
$100,000,000, (b) a commercial lender organized under the laws of any other
country which is a member of the Organization for Economic Cooperation and
Development (the “OECD”), or a
political subdivision of any such country, and having a combined capital and
surplus of at least $100,000,000, provided that such commercial lender is acting
through a branch or agency located in the country in which it is organized or
another country which is also a member of the OECD, and (c) any Lender
Affiliate.

     

    “Environmental Claims”
means all claims, however asserted, by any Governmental Authority or other
Person alleging potential liability or responsibility for violation of any
Environmental Law or for release or injury to the environment or threat to
public health, personal injury (including sickness, disease or death), property
damage, natural resources damage, or otherwise alleging liability or
responsibility for damages (punitive or otherwise), cleanup, removal, remedial
or response costs, restitution, civil or criminal penalties, injunctive relief,
or other type of relief, resulting from or based upon (a) the presence,
placement, discharge, emission or release (including intentional and
unintentional, negligent and non-negligent, sudden or non-sudden, accidental or
non-accidental placement, spills, leaks, discharges, emissions or releases) of
any Hazardous Material at, in, or from Property, whether or not owned by the
Borrower or any Subsidiary Guarantor, or (b) any other circumstances forming the
basis of any violation, or alleged violation, of any Environmental
Law.

     

    “Environmental Indemnity
Agreement” means an environmental indemnity agreement substantially in
the form of Exhibit
D, with such revisions as may be proposed by local counsel to the Agent
and acceptable to the Agent.

     

    “Environmental Laws”
means all federal, state or local laws, statutes, common law duties, rules,
regulations, ordinances and codes, together with all administrative orders,
directed duties, requests, licenses, authorizations and permits of, and
agreements with, any Governmental Authorities, in each case relating to
environmental, health, safety and land use matters; including the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), the
Hazardous Material Transportation Act, the Federal Water Pollution Control Act,
the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal
Act, the Federal Resource Conservation and Recovery Act, the Occupational Safety
and Health Act, the Toxic Substances Control Act and the Emergency Planning
and Community Right-to-Know Act, each as amended or supplemented, and any
analogous future or present local, municipal, state or federal statutes and
regulations promulgated pursuant thereto, each as in effect as of the date of
any determination.

     

    “Environmental
Permits” has the meaning set forth in Section 5.11(b).

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the rules and regulations promulgated thereunder.

     

    
      
        
        

      

      
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    “ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control
with the Borrower within the meaning of Section 414(b), 414(c) or 414(m) of the
Code.

     

    “ERISA Event” means
(a) a Reportable Event with respect to a Qualified Plan or a Multiemployer
Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a
Qualified Plan subject to Section 4063 of ERISA during a plan year in which it
was a substantial employer (as defined in Section 4001(a)(2) of ERISA);
(c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate
from a Multiemployer Plan; (d) the filing of a notice of intent to terminate,
the treatment of a plan amendment as a termination under Section 4041 or 4041A
of ERISA or the commencement of proceedings by the PBGC to terminate a Qualified
Plan or Multiemployer Plan subject to Title IV of ERISA; (e) a failure by
the Borrower or any member of the Controlled Group to make required
contributions to a Qualified Plan or Multiemployer Plan; (f) an event or
condition which might reasonably be expected to constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Qualified Plan or Multiemployer Plan; (g) the imposition of any
liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate; (h) an application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code with respect to any
Plan; (i) a non-exempt prohibited transaction occurs with respect to any Plan
for which the Borrower or any Subsidiary of the Borrower may be directly or
indirectly liable; or (j) a violation of the applicable requirements of Section
404 or 405 of ERISA or the exclusive benefit rule under Section 401(a) of the
Code by any fiduciary or disqualified person with respect to any Plan for which
the Borrower or any member of the Controlled Group may be directly or indirectly
liable.

     

    “Estimated Remediation
Cost” means all costs associated with performing work to remediate
contamination of a Property or groundwater which constitutes a violation of
Environmental Laws, including engineering and other professional fees and
expenses, costs to remove, transport and dispose of contaminated soil, costs to
“cap” or otherwise contain contaminated soil, and costs to pump and treat water
and monitor water quality.

     

    “Event of Default”
means any of the events or circumstances specified in Section
8.01.

     

    “Exchange Act” means
the Securities and Exchange Act of 1934, and regulations promulgated
thereunder.

     

    “Extended Maturity
Date” has the meaning specified in Section
2.09(b).

     

    “Federal Funds
Rate” means,
for any day, the rate per annum equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal
Reserve Lender of New York on the Business Day next succeeding such day; provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a whole multiple
of 1/100 of 1%) charged to Capital One on such day on such transactions as
determined by the Agent.

     

    
      
         

      

      
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    “Federal Reserve
Board” means the Board of Governors of the Federal Reserve System or any
successor thereof.

     

    “FIRREA” means the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended
from time to time, and any regulations promulgated thereunder.

     

    “Fully Satisfied”
means, with respect to the Obligations as of any date, that, as of such date,
(a) all principal of and interest accrued to such date which constitute
Obligations shall have been irrevocably paid in full in cash, (b) all fees,
expenses and other amounts then due and payable which constitute Obligations
shall have been irrevocably paid in cash, (c) all outstanding Letters of
Credit shall have been (i) terminated, (ii) fully irrevocably cash
collateralized or (iii) secured by one or more letters of credit on terms
and conditions, and with one or more financial institutions, satisfactory to the
L/C Issuer and (d) the Commitments shall have expired or been terminated in full
(in each case, other than inchoate indemnification liabilities arising under the
Loan Documents).

     

    “GAAP” means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and
authority within the accounting profession), or in such other statements by such
other entity as may be in general use by significant segments of the U.S.
accounting profession, which are applicable to the circumstances as of the date
of determination.

     

    “Government List” has
the meaning specified in Section
7.19.

     

    “Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory
authority) thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing.

     

    “Guaranty Obligation”
means, as applied to any Person, any direct or indirect liability of that Person
with respect to any Indebtedness, lease, dividend, letter of credit or other
obligation (the “primary obligation”) of another Person (the “primary obligor”),
including any obligation of that Person, whether or not contingent, (a) to
purchase, repurchase or otherwise acquire such primary obligations or any
Property constituting direct or indirect security therefor, or (b) to
advance or provide funds (i) for the payment or discharge of any such
primary obligation, or (ii) to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency or any
balance sheet item, level of income or financial condition of the primary
obligor, or (c) to purchase securities, other Properties or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation, or (d) otherwise to assure or hold harmless the holder of any
such primary obligation against loss in respect thereof.  Except as
set forth in the definition of “Total Indebtedness” below, the amount of any
Guaranty Obligation shall be deemed equal to the stated or determinable amount
of the primary obligation in respect of which such Guaranty Obligation is made
or, if not stated or if indeterminable, the maximum reasonably anticipated
liability in respect thereof.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    “Hazardous Materials”
means (i) all those substances which are regulated by, or which may form the
basis of liability under, any Environmental Law, including all substances
identified under any Environmental Law as a pollutant, contaminant, hazardous
waste, hazardous constituent, special waste, hazardous substance, hazardous
material, or toxic substance, or petroleum or petroleum-derived substance or
waste, (ii) any other materials or pollutants that cause such Property to be in
violation of any Environmental Laws, (iii) asbestos in any form which is or
could become friable, urea formaldehyde foam insulation, electrical equipment
which contains any oil or dielectric fluid containing levels of polychlorinated
biphenyls in excess of fifty parts per million, and (iv) any other chemical,
material, substance, or waste, exposure to which is prohibited, limited, or
regulated by any Governmental Authority.

     

    “Honor Date” has the
meaning specified in Section
2.04(c)(i).

     

    “Indebtedness” of any
Person means without duplication, (a) all indebtedness for borrowed money,
(b) all obligations issued, undertaken or assumed as the deferred purchase
price of Property or services, (c) all reimbursement obligations with
respect to surety bonds, letters of credit, bankers' acceptances and similar
instruments (in each case, to the extent material or non-contingent),
(d) all obligations evidenced by notes, bonds, debentures or similar
instruments, including obligations so evidenced incurred in connection with the
acquisition of Properties, (e) all indebtedness created or arising under
any conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to Properties acquired by the Person
(even though the rights and remedies of the seller or bank under such agreement
in the event of default are limited to repossession or sale of such properties),
(f) all Capital Lease Obligations, (g) all net obligations with
respect to Rate Contracts, (h) all obligations to purchase, redeem, or
acquire any Stock of such Person or its Affiliates that, by its terms or by the
terms of any security into which it is convertible or exchangeable, is, or upon
the happening of any event or the passage of time would be, required to be
redeemed or repurchased by such Person or its Affiliates, (i) all
indebtedness referred to in clauses (a) through (h) above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in Properties (including accounts
and contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness, and (j) all
Guaranty Obligations in respect of indebtedness or obligations of others of the
kinds referred to in clauses (a) through (h) above.

     

    “Indemnified
Liabilities” has the meaning specified in Section
10.05.

     

    “Indemnified Person”
has the meaning specified in Section
10.05.

     

    
      
        
        

      

      
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    “Insolvency
Proceeding” means (a) any case, action or proceeding before any
court or other Governmental Authority relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up or relief of
debtors, or (b) any general assignment for the benefit of creditors,
composition, marshalling of assets for creditors or other, similar arrangement
in respect of its creditors generally or any substantial portion of its
creditors; in each case as undertaken under U.S. Federal, State or foreign
law.

     

    “Interest Determination
Date” shall mean, with respect to any Interest Period, the date that is
two (2) Business Days prior to the first (1st) day of
the calendar month in which such Interest Period commences.

     

    “Interest Payment
Date” means the last Business Day of each calendar month.

     

    “Interest Period”
means the period commencing on the first (1st) day of
each calendar month and terminating on the last day of such calendar
month.

     

    “Investment” means
(a) any purchase or acquisition of any capital stock, equity interest,
asset, obligation or other security of or any interest in, any Person,
(b) any advance, loan, extension of credit or capital contribution to any
Person, (c) any purchase, lease, or other acquisition of Property for the
purpose of resale or leasing to another Person, and (d) any contingent or
other agreement to do any of the foregoing.

     

    “Investment Grade Borrowing
Base Properties” means any Borrowing Base Property that is net leased to
an Investment Grade Tenant.

     

    “Investment Grade
Tenant” means any tenant under a Net Lease of a Borrowing Base Property
that has a rating of BBB- or better from Standard & Poor's
Corporation.

     

    “IRS” means the
Internal Revenue Service or any agency successor thereto.

     

    “ISP” means, with
respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice, Inc. (or
such later version thereof as may be in effect at the time of
issuance).

     

    “Issuer Documents”
means with respect to any Letter of Credit, the Letter of Credit Application,
and any other document, agreement and instrument entered into by the L/C Issuer
and the Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating
to such Letter of Credit.

     

    “Joinder Agreement”
means a Joinder Agreement substantially in the form attached to the form of
Subsidiary Guaranty.

     

    “Knowledge of the
Borrower” means the actual knowledge (unless otherwise provided, after
reasonable inquiry) of the Chief Executive Officer and President of the Borrower
and each other Person with executive responsibility for any aspect of the
Borrower's business.

     

    
      
        
        

      

      
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    “L/C Advance” means,
with respect to each Lender, such Lender’s funding of its participation in any
L/C Borrowing in accordance with its Commitment Percentage.

     

    “L/C Borrowing” means
an extension of credit resulting from a drawing under any Letter of Credit which
has not been reimbursed on the date when made.

     

    “L/C Credit Extension”
means, with respect to any Letter of Credit, the issuance thereof or extension
of the expiry date thereof, or the increase of the amount thereof.

     

    “L/C Issuer” means
Capital One in its capacity as issuer of Letters of Credit hereunder, or any
successor issuer of Letters of Credit hereunder.

     

    “L/C Obligations”
means, as at any date of determination, the aggregate amount available to be
drawn under all outstanding Letters of Credit plus the aggregate of
all Unreimbursed Amounts, including all L/C Borrowings.  For all
purposes of this Agreement, if on any date of determination a Letter of Credit
has expired by its terms but any amount may still be drawn thereunder by reason
of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed
to be “outstanding” in the amount so remaining available to be
drawn.

     

    “Lease” shall mean any
lease, sublease or subsublease, letting, license, concession or other agreement
(whether written or oral and whether now or hereafter in effect) pursuant to
which any Person is granted a possessory interest in, or right to use or occupy
all or any portion of any space in a Property, and every modification, amendment
or other agreement relating to such lease, sublease, subsublease, or other
agreement entered into in connection with such lease, sublease, subsublease, or
other agreement and every guarantee of the performance and observance of the
covenants, conditions and agreements to be performed and observed by the other
party thereto.

     

    “Lender” means each of
the lenders party to this Agreement, and includes Capital One in its individual
capacity.

     

    “Lender Affiliate”
means a Person that is engaged primarily in the business of commercial lending
and is a Subsidiary of a Lender or of a Person of which a Lender is a
Subsidiary.

     

    “Lending Office”
means, with respect to any Lender, the office or offices of the Lender specified
as its “Lending Office” opposite its name on the signature pages hereto, or such
other office or offices of the Lender as it may from time to time specify to the
Borrower and the Agent.

     

    “Letter of Credit”
means any letter of credit issued hereunder.  A Letter of Credit may
be a standby letter of credit only.

     

    “Letter of Credit
Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C
Issuer.

     

    
      
        
        

      

      
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    “Letter of Credit Expiration
Date” means the day that is seven days prior to the Maturity Date (or, if
such day is not a Business Day, the next preceding Business Day).

     

    “Letter of Credit Fee”
has the meaning specified in Section
2.04(g).

     

    “Letter of Credit
Sublimit” means, as of any date of determination, an amount equal to the
lesser of (a) $1,000,000 and (b) the Commitments as of such date.

     

    “LIBOR Base Rate”
shall mean, with respect to each Interest Period, the rate (truncated at
1/100th of 1%)
for deposits in U.S. dollars, for a one-month or three-month period, as selected
by Borrower in accordance with Section 2.01(a)
hereof, that appears on Telerate Page 3750 (or the successor thereto) as of
11:00 a.m., London time, on the related Interest Determination
Date.  If such rate does not appear on Telerate Page 3750 as of 11:00
a.m., London time, on such Interest Determination Date, the LIBOR Base Rate
shall be the arithmetic mean of the offered rates (expressed as a percentage per
annum) for deposits in U.S. dollars for a one-month or three-month period, as
applicable, that appear on the Reuters Screen Libor Page as of 11:00 a.m.,
London time, on such Interest Determination Date, if at least two such offered
rates so appear.  If fewer than two such offered rates appear on the
Reuters Screen Libor Page as of 11:00 a.m., London time, on such Interest
Determination Date, Agent shall request the principal London office of any four
major reference banks in the London interbank market selected by Agent to
provide such bank’s offered quotation (expressed as a percentage per annum) to
prime banks in the London interbank market for deposits in U.S. dollars for a
one-month or three-month period, as applicable, as of 11:00 a.m., London time,
on such Interest Determination Date for the amounts of not less than U.S.
$1,000,000.  If at least two such offered quotations are so provided,
the LIBOR Base Rate shall be the arithmetic mean of such
quotations.  If fewer than two such quotations are so provided, Agent
shall request any three major banks in New York City selected by Agent to
provide such bank’s rate (expressed as a percentage per annum) for loans in U.S.
dollars to leading European banks for a one-month or three-month period, as
applicable, as of approximately 11:00 a.m., New York City time on the applicable
Interest Determination Date for amounts of not less than U.S.
$1,000,000.  If at least two such rates are so provided, the LIBOR
Base Rate shall be the arithmetic mean of such rates.  The LIBOR Base
Rate shall be determined conclusively by Agent or its agent.

     

    “LIBOR Rate” shall
mean, for any Interest Period, a rate per annum (truncated at 1/100th of 1%)
determined by Agent to be equal to the LIBOR Base Rate for such Interest Period
divided by (1 minus the Reserve Requirement) for such Interest
Period.

     

    “Liquid Assets” shall
mean assets in the form of cash, cash equivalents, obligations of (or fully
guaranteed as to principal and interest by) the United States or any agency or
instrumentality thereof (provided the full faith and credit of the United States
supports such obligation or guarantee), certificates of deposit issued by a
commercial bank having net assets of not less than $500 million, securities
listed and traded on a recognized stock exchange or traded over the counter and
listed in the National Association of Securities Dealers Automatic Quotations,
or liquid debt instruments that have a readily ascertainable value and are
regularly traded in a recognized financial market.

     

    
      
        
        

      

      
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    “Lien” means any
mortgage, deed of trust, security agreement, pledge, hypothecation, assignment,
charge or deposit arrangement, encumbrance, lien (statutory or other) or
preference, priority or other security interest or preferential arrangement of
any kind or nature whatsoever (including those created by, arising under or
evidenced by any conditional sale or other title retention agreement, the
interest of a lessor under a Capital Lease, any financing lease having
substantially the same economic effect as any of the foregoing, or the filing of
any financing statement naming the owner of the asset to which such lien relates
as debtor, under the UCC or any comparable law) and any contingent or other
agreement to provide any of the foregoing.

     

    “Loan” or “Loans” has the
meaning specified in Section
2.01(a).

     

    “Loan Documents” means
this Agreement, the Notes, the Collateral Documents,  the Subsidiary
Guarantees, the Joinder Agreement and all other documents delivered to the Agent
or the Lenders in connection therewith.

     

    “Margin Stock” means
“margin stock” as such term is defined from time to time in Regulation G, T, U
or X of the Federal Reserve Board.

     

    “Material Adverse
Effect” means a material adverse change in, or a material adverse effect
upon, any of (a) the financial condition of the Borrower, (b) the ability
of the Borrower or any Subsidiary Guarantor to perform under any Loan Document
and avoid any Event of Default, or (c) the value of the
Collateral.

     

    “Maturity Date” means
January 31, 2013, subject, however, to extension pursuant to Section 2.09(b)
hereof, and to earlier acceleration pursuant to the provisions of the Loan
Documents.

     

    “Mortgage” means a
deed of trust, mortgage or similar real property security instrument encumbering
Collateral, substantially in the form of Exhibit E, with
such revisions as may be proposed by local counsel to the Agent and acceptable
to the Agent.

     

    “Multiemployer Plan”
means a “multiemployer plan” (within the meaning of Section 4001(a)(3) of ERISA)
and to which any member of the Controlled Group makes, is making, or is
obligated to make contributions or, during the preceding three calendar years,
has made, or been obligated to make, contributions.

     

    “Net Lease” means a
lease entered into by any Subsidiary Guarantor and the tenant thereunder with
respect to any Property, in form and substance satisfactory to
Agent.

     

    “Net Operating
Income,” as to any Borrowing Base Property, means (a) all gross revenues
recorded in accordance with GAAP from the operation of such Borrowing Base
Property during a particular period (including, without limitation, payments
received from insurance on account of business or rental interruption and
condemnation proceeds from any temporary use or occupancy, in each case to the
extent attributable to the period for which such Net Operating Income is being
determined, but excluding any proceeds from the sale or other disposition of any
part or all of such Borrowing Base Property; or from any financing or
refinancing of such Borrowing Base Property; or from any condemnation of any
part or all of such Borrowing Base Property (except for temporary use or
occupancy); or on account of a casualty to the property (other than payments
from insurance on account of business or rental interruption); or any security
deposits paid under leases of all or a part of such Borrowing Base Property,
unless forfeited by tenants; and similar items or transactions the proceeds of
which under GAAP are deemed attributable to capital), minus (b) all
reasonable and customary property maintenance and repair costs, leasing and
administrative costs, management fees (assumed to be three percent (3%) of gross
receipts) and real estate taxes and insurance premiums recorded in accordance
with GAAP by the Borrower during such period with respect to such Borrowing Base
Property and minus (c) all Capital
Expenditures recorded in accordance with GAAP by the Borrower during such period
with respect to such Borrowing Base Property.  There shall be no
deduction for any expense not involving a cash expenditure, such as
depreciation.  To the extent any contradiction exists between the
foregoing definition and the manner in which net operating incoming is
calculated and defined under GAAP, the latter shall prevail and be applied as
appropriate under this Agreement.

     

    
      
         

      

      
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    “Nominated Property”
has the meaning specified in Section
2.16(a)(i).

     

    “Non-Extension Notice
Date” has the meaning specified in Section
2.04(b)(iii).

     

    “Non-Investment Grade
Borrowing Base Properties” means any Borrowing Base Property that is net
leased to an Non-Investment Grade Tenant.

     

    “Non-Investment Grade
Tenant” means any tenant under a Net Lease of a Borrowing Base Property
that does not qualify as an Investment Grade Tenant.

     

    “Note” means a
promissory note of the Borrower payable to the order of a Lender in
substantially the form of Exhibit F,
evidencing the aggregate indebtedness of the Borrower to such Lender resulting
from Loans made by such Lender.

     

    “Notice of Lien” means
any “notice of lien” or similar document intended to be filed or recorded with
any court, registry, recorder's office, central filing office or other
Governmental Authority for the purpose of evidencing, creating, perfecting or
preserving the priority of a Lien securing obligations owing to a Governmental
Authority.

     

    “Obligations” means
all Loans, Letters of Credit, and other Indebtedness, advances, debts,
liabilities, obligations, covenants and duties owing by the Borrower or any
Subsidiary Guarantor to the Agent, any Lender, or any other Person required to
be indemnified under any Loan Document, of any kind or nature, present or
future, whether or not evidenced by any note, guaranty or other instrument,
arising under this Agreement or under any other Loan Document, whether or not
for the payment of money, whether arising by reason of an extension of credit,
loan, guaranty, indemnification or in any other manner, whether direct or
indirect (including those acquired by assignment), absolute or contingent, due
or to become due, now existing or hereafter arising and however
acquired.

     

    “OFAC” has the meaning
specified in Section
7.19.

     

    
      
        
        

      

      
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    “Ordinary Course of
Business” means, in respect of any transaction involving the Borrower,
the REIT or any Subsidiary Guarantor, the ordinary course of such Person's
business, substantially as intended to be conducted by any such Person as of the
Closing Date, and undertaken by such Person in good faith and not for purposes
of evading any covenant or restriction in any Loan Document.

     

    “Organizational
Documents” means: (a) for any corporation, the certificate or
articles of incorporation, the bylaws, any supplementary articles, certificate
of determination or instrument relating to the rights of preferred shareholders,
and all duly adopted resolutions of the board of directors (or any committee
thereof) of such corporation (b) for any partnership, the partnership
agreement, the certificate and/or statement of partnership and all duly adopted
authorizations of the partners thereof; (c) for any limited liability company,
the articles of organization and operating agreement therefor and duly adopted
authorizations or resolutions of the members thereof; and (d) for any trust, the
declaration or agreement of trust.

     

    “Originating Lender”
has the meaning specified in Section
10.08(d).

     

    “Other Taxes” has the
meaning specified in Section
3.01(b).

     

    “Outstanding Amount”
means the aggregate principal amount of all outstanding Loans and any L/C
Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements by the
Borrower of Unreimbursed Amounts.

     

    “Outstanding
Indebtedness” means, as of any date of determination, that portion of
Total Indebtedness outstanding.

     

    “Participant” has the
meaning specified in Section
10.08(d).

     

    “Patriot Act” has the
meaning specified in Section
7.19.

     

    “Patriot Act Offense”
has the meaning specified in Section
7.19.

     

    “Payment Office” means
the address for payments set forth on the signature page hereto in relation to
the Agent or such other address as the Agent may from time to time specify in
accordance with Section
10.02.

     

    “PBGC” means the
Pension Benefit Guaranty Corporation or any entity succeeding to any or all of
its functions under ERISA.

     

    “Permitted Exceptions”
means covenants, conditions, restrictions, easements and other exceptions to
title affecting a Borrowing Base Property approved by Agent and shown as
exceptions in the Title Policy for such property.

     

    “Permitted Transfers”
means any of the following:

     

    
      
        
        

      

      
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    (a)           the
transfer by Borrower of any direct or indirect interest in any Subsidiary
Guarantor to any Person, provided that, after giving effect to any such transfer
or assignment, the Borrower continues to own no less than fifty-one percent
(51%) of such Subsidiary Guarantor and provided no Change of Control results
from same;

    

    (b)           the
transfer of any direct or indirect interests in Borrower and/or the REIT that
are or become publically traded on a national exchange, provided that no Change
of Control results from same; and

    

    (c)           the
merger or consolidation of the REIT, or a sale of the REIT, provided that the
merger or consolidation of the REIT is with, or the sale of the REIT is to, a
publically traded company having a net worth prior to such merger, consolidation
or sale greater than the net worth of the REIT as of the date hereof and
provided that no Change of Control results from same.

    

     “Person” means an
individual, partnership, corporation, business trust, joint stock company,
trust, unincorporated association, joint venture or governmental
authority.

    

    “Plan” means an
employee benefit plan (as defined in Section 3(3) of ERISA) which the Borrower
or any member of the Controlled Group sponsors or maintains or to which the
Borrower or any member of the Controlled Group makes, is making or is obligated
to make contributions, and includes any Multiemployer Plan or Qualified
Plan.

     

    “Pro Forma Debt
Service” shall mean the sum of (a) the pro forma amount of interest which
would accrue (if payable monthly) during a period of one year on a principal sum
equal to the Outstanding Amount on the date of determination at a rate equal to
the Assumed Interest Rate plus (b) an amount equal to the sum of the principal
components of the amortization payments that would be due during the first year
of a twenty-five (25) year amortization period if the Outstanding Amount were to
be payable over a twenty-five (25) year amortization period in equal monthly
payments of principal and interest at an interest rate equal to the Assumed
Interest Rate.

     

    “Prohibited
Transaction” means any transaction described in section 406 of ERISA
which is not exempt by reason of section 408 of ERISA or the transitional
rules set forth in section 414(c) of ERISA and any transaction described in
section 4975(c)(12) of the Code which is not exempt by reason of
section 4975(c)(2) or section 4975(d) of the Code, or the transitional
rules of section 2003(c) of ERISA.

     

    “Properties” means, at
any time, a collective reference to each of the facilities and real properties
owned or leased by the Borrower or any of its Subsidiaries or in which any such
party has an interest at such time; and “Property” means any
one of such Properties.

     

    “Property Information
Packet” has the meaning specified in Section
6.21.

     

    “Qualified Plan” means
a pension plan (as defined in Section 3(2) of ERISA) intended to be
tax-qualified under Section 401(a) of the Code and which any member of the
Controlled Group sponsors, maintains, or to which it makes, is making or is
obligated to make contributions, or in the case of a multiple employer plan (as
described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding period covering at least five (5) plan years, but
excluding any Multiemployer Plan.

     

    
      
         

      

      
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    “Rate Contracts” means
interest rate and currency swap agreements, cap, floor and collar agreements,
interest rate insurance, currency spot and forward contracts and other
agreements or arrangements designed to provide protection against fluctuations
in interest or currency exchange rates.

     

    “REIT” means American
Realty Capital Trust Inc., a Maryland corporation, which is the general partner
of the Borrower.

     

    “REIT Status” means,
with respect to any Person, (a) the qualification of such Person as a real
estate investment trust under Sections 856 through 860 of the Code,
(b) the applicability to such Person and its shareholders of the method of
taxation provided for in Sections 857 et seq. of the Code, and
(c) the qualification and taxation of such Person as a real estate
investment trust under analogous provisions of state and local law in each state
and jurisdiction in which such Person owns property, operates or conducts
business.

     

    “Rents” means all
rents, rent equivalents, moneys payable as damages (including payments by reason
of the rejection of a Lease in an Insolvency Proceeding) or in lieu of rent or
rent equivalents, royalties (including all oil and gas or other mineral
royalties and bonuses), income, fees, receivables, receipts, revenues, deposits
(including security, utility and other deposits), accounts, cash, issues,
profits, charges for services rendered, and other payment and consideration of
whatever form or nature received by or paid to or for the account of or benefit
of Borrower, any Subsidiary Guarantor or any of their agents or employees from
any and all sources arising from or attributable to any Borrowing Base Property,
including all receivables, customer obligations, installment payment obligations
and other obligations now existing or hereafter arising or created out of the
sale, lease, sublease, license, concession or other grant of the right of the
use and occupancy of any Borrowing Base Property or rendering of services by
Borrower, any Subsidiary Guarantor or any of their agents or employees and
proceeds, if any, from business interruption or other loss of income
insurance.

     

    “Reportable Event”
means any of the events set forth in section 4043(b) of ERISA or the
regulations thereunder, a withdrawal from a Plan described in section 4063
of ERISA, a cessation of operations described in section 4068(f) of ERISA,
an amendment to a Plan necessitating the posting of security under
section 401(a)(29) of the Code, or a failure to make when due a payment
required by section 412(m) of the Code and section 302(e) of
ERISA.

     

    “Requirement of Law”
means, as to any Person, any law (statutory or common), treaty, rule or
regulation or determination of an arbitrator or of a Governmental Authority, in
each case applicable to or binding upon the Person or any of its Property or to
which the Person or any of its Property is subject.

     

    
      
        
        

      

      
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    “Requisite Lenders”
means, as of any date of determination, Lenders holding at least 66-2/3% of the
outstanding principal balance of the Loans, or, if there are no Loans
outstanding, Lenders having at least 66-2/3% of the Aggregate
Commitment.

    “Reserve Requirement”
shall mean, for any Interest Period, the average maximum rate at which reserves
(including, without limitation, any marginal, supplemental or emergency
reserves) are required to be maintained during such Interest Period under
Regulation D by member banks of the Federal Reserve System in New York City with
deposits exceeding one billion dollars against “Eurocurrency Liabilities” (as
such term is used in said Regulation D).   In determining the
Reserve Requirement, Agent shall take into account any transitional adjustment
or phase-in provisions of the reserve requirements otherwise applicable to
Eurocurrency Liabilities during the applicable Interest Period, and, in the
event of any change or variation in the reserve requirements during the
applicable Interest Period, Agent may use any reasonable averaging or
attribution methods which it deems appropriate.  The determination by
Agent of any applicable Reserve Requirement shall be conclusive, absent manifest
error.  Failure by Agent to take into account the Reserve Requirement
when calculating interest due with respect to the Loans shall not constitute,
whether by course of dealing or otherwise, a waiver by Agent of its right to
collect such amounts for any future period.

     

    “Responsible Officer”
means the President of the Borrower, or, with respect to financial matters, the
Chief Financial Officer or Controller of the Borrower.

     

    “Rolling 12-Month Cash
Flow” shall mean for all Borrowing Base Properties for any fiscal
quarter, the Net Operating Income from the Borrowing Base Properties for the
twelve (12) month period ending on the last day of such quarter.

     

    “SEC” means the
Securities and Exchange Commission, or any successor thereto.

     

    “Single Purpose
Entity” shall mean a Person (other than an individual, a government, or
any agency or political subdivision thereof), which exists solely for the
purpose of owning a Borrowing Base Property, conducts business only in its own
name, does not engage in any business or have any assets unrelated to such
Borrowing Base Property, does not have any indebtedness other than as permitted
by this Agreement, has its own separate books, records, and accounts (with no
commingling of assets) although it may file a consolidated income tax return
with another Person, holds itself out as being a Person separate and apart from
any other Person, and observes corporate and partnership formalities independent
of any other entity.

     

    “Solvency Certificate”
means a certificate in the form attached hereto as Exhibit J
whereby a Person represents and warrants as to its Solvency or as to the
Solvency of any Subsidiary thereof.

     

    “Solvent” means, as to
any Person at any time, that (a) the fair value of the Property of such Person
is greater than the amount of such Person's liabilities (including disputed,
contingent and unliquidated liabilities) as such value is established and
liabilities evaluated for purposes of Section 101(31) of the Bankruptcy Code
and, in the alternative, for purposes of the Uniform Fraudulent Transfer Act;
(b) the present fair saleable value of the Property of such Person is not less
than the amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured; (c) such Person is able
to realize upon its Property and pay its debts and other liabilities (including
disputed, contingent and unliquidated liabilities) as they mature in the normal
course of business; (d) such Person does not intend to, and does not believe
that it will, incur debts or liabilities beyond such Person's ability to pay as
such debts and liabilities mature; and (e) such Person is not engaged in
business or a transaction, and is not about to engage in business or a
transaction, for which such Person's property would constitute unreasonably
small capital.

     

    
      
         

      

      
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    “Stock” means all
shares, options, warrants, interests, participations or other equivalents
(regardless of how designated) of or in a corporation or equivalent entity,
whether voting or nonvoting, including common stock, preferred stock, or any
other “equity security” (as such term is defined in Rule 3a11-1 of the
General Rules and Regulations promulgated by the Securities and Exchange
Commission under the Exchange Act).

     

    “Subsidiary” means any
corporation, association, partnership, joint venture, trust or other business
entity of which more than fifty percent (50%) of the Stock or other equity or
beneficial interests (in the case of Persons other than corporations) is owned
or controlled directly or indirectly by Borrower, or one or more of the
Subsidiaries of the Borrower, or a combination thereof.

     

    “Subsidiary Guarantor”
means each Subsidiary that is the owner of a Borrowing Base Property from time
to time.  The initial Subsidiary Guarantors are described on Schedule 2.16
hereto.  Subsidiary Guarantors may be released as such as provided in
Section 2.16 and
Subsidiaries shall be added as Subsidiary Guarantors pursuant a Joinder
Agreement delivered pursuant to Section 6.20.

     

    “Subsidiary Guaranty”
means the Guaranty made jointly and severally by the Subsidiary Guarantors (or
joined in by any Subsidiary Guarantor pursuant to a Joinder Agreement) in
favor of the Agent and the Lenders, substantially in the form of Exhibit G.

     

    “Tangible Net Worth”
means, as of any date of determination, the Borrower's net worth, as determined
in accordance with GAAP (except that in determining the Borrower's net worth,
the Indebtedness of the Borrower shall include the Borrower's share of the
Indebtedness of any partnership or joint venture in which the Borrower directly
or indirectly holds any interest plus any recourse or contingent obligations,
directly or indirectly, of the Borrower with respect to any Indebtedness of such
partnership or joint venture in excess of its proportionate share), exclusive of
intangible assets such as good will, patents, tradenames, trade-marks,
copyrights, franchises and other assets defined as “intangible assets” under
GAAP, but including the fair value of any Leases determined in accordance with
GAAP.

     

    “Taxes” has the
meaning specified in Section
3.01(a).

     

    “Title Insurer” means
a title insurance company acceptable to the Agent.

     

    
      
        
        

      

      
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    “Title Policy” for any
Borrowing Base Property means an extended coverage ALTA Loan Policy issued by
the Title Insurer and in form and substance satisfactory to the Agent in its
discretion, which shall insure the lien of the Mortgage on such Borrowing Base
Property as a valid first lien on the Borrower's fee simple estate therein (as
well as on all rights and easements under any applicable reciprocal easement or
similar agreement and all other appurtenant interests), subject to no exceptions
other than Permitted Exceptions.  Unless otherwise approved by the
Agent, each Title Policy shall be in the amount of the Commitments of all
Lenders, and shall be reinsured with other companies and in such amounts as may
be acceptable to the Agent in form and substance satisfactory to the Agent in
its discretion.  Each Title Policy shall also include such
endorsements as may be required by the Agent in its discretion, including,
without limitation, each of the following endorsements:  (i) an
endorsement relating to covenants, conditions and restrictions and
encroachments; (ii) an endorsement insuring that such Borrowing Base
Property has access to a specified physically open, dedicated and accepted
public street; (iii) an endorsement insuring the priority of the assignment
of leases and rents for such Borrowing Base Property; (iv) a variable rate
endorsement; (v) a revolving credit endorsement; (vi) a tie-in endorsement;
(vii) an environmental endorsement; and (viii) “last-dollar”
endorsement.  Unless otherwise approved by the Agent, no Title Policy
shall include an exception for bankruptcy, fraudulent conveyance or creditors'
rights issues.  The Title Insurer shall not insure or endorse over any
lien or other easement, whether based on an indemnity from the Borrower or
otherwise, without the prior approval of the Agent.

     

    “Total Assets” means
the value of all assets of the Borrower as determined in accordance with
GAAP.

     

    “Total Indebtedness”
means as of any date of determination, the Indebtedness of the Borrower, whether
outstanding or available to be drawn, and shall include the Borrower's share of
the Indebtedness of any partnership or joint venture in which the Borrower
directly or indirectly holds any interest plus any recourse or contingent
obligations, directly or indirectly, of the Borrower with respect to any
Indebtedness of such partnership or joint venture in excess of its proportionate
share.

     

    “Total Mortgage
Indebtedness” means the aggregate amount of Indebtedness of Borrower and
any Subsidiary that is secured by Liens on the Properties of Borrower and the
Subsidiaries.

     

    “UCC” means the
Uniform Commercial Code as in effect in any jurisdiction.

     

    “Unfunded Pension
Liabilities” means the excess of a Plan's benefit liabilities under
section 4001(a)(16) of ERISA, over the current value of that Plan's assets,
determined in accordance with the assumptions used by the Plan's actuaries for
funding the Plan pursuant to section 412 for the applicable plan
year.

     

    “Unhedged Interest
Exposure” means the aggregate amount of Indebtedness of Borrower and any
Subsidiary that is (a) secured by Liens on the Properties of Borrower and the
Subsidiaries and (b) that provides for the payment by Borrower and the
Subsidiaries of interest at a floating rate that is not subject to a Rate
Contract.

     

    
      
        
        

      

      
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    “United States” and
“U.S.” each
mean the United States of America.

     

    “Unreimbursed Amount”
has the meaning specified in Section
2.04(c)(i).

     

    1.02       Other Definitional
Provisions.

     

    (a)           Defined
Terms.  Unless otherwise specified herein or therein, all terms
defined in this Agreement shall have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto.  The
meaning of defined terms shall be equally applicable to the singular and plural
forms of the defined terms.  Terms (including uncapitalized terms) not
otherwise defined herein but defined in the UCC shall have the meanings set
forth therein.

     

    (b)           The
Agreement.  The words “hereof”, “herein”, “hereunder” and words
of similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; and section,
schedule and exhibit references are to this Agreement unless otherwise
specified.

     

    (c)           Certain Common
Terms.

     

    (i)     
      The term “documents” includes any and all
instruments, documents, agreements, certificates, indentures, notices and other
writings, however evidenced.

     

    (ii)           The
term “including” is not limiting and means “including without
limitation.”

     

    (iii)          The
term “ratably” means, at any time that Loans may be outstanding, in accordance
with the amount of the outstanding Loans of the respective Lenders; and, at any
time that no Loans are outstanding, in accordance with the outstanding
Commitments of the respective Lenders.

     

    (d)           Performance;
Time.  Whenever any performance obligation hereunder (other
than a payment obligation) is stated to be due or required to be satisfied on a
day other than a Business Day, such performance shall be made or satisfied on
the next succeeding Business Day.  In the computation of periods of
time from a specified date to a later specified date, the word “from” means
“from and including”; the words “to” and “until” each mean “to but excluding,”
and the word “through” means “to and including”.  If any provision of
this Agreement refers to any action taken or to be taken by any Person, or which
such Person is prohibited from taking, such provision shall be interpreted to
encompass any and all means, direct or indirect, of taking, or not taking, such
action.

     

    (e)           Contracts.  Unless
otherwise expressly provided herein, references to agreements and other
contractual instruments shall be deemed to include all subsequent amendments and
other modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Loan Document.

     

    
      
        
        

      

      
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    (f)      
     Laws.  References
to any statute or regulation are to be construed as including all statutory and
regulatory provisions consolidating, amending or replacing the statute or
regulation.

     

    (g)           Captions.  The
captions and headings of this Agreement are for convenience of reference only
and shall not affect the construction of this Agreement.

     

    (h)           Independence of
Provisions.  The parties acknowledge that this Agreement and
other Loan Documents may use several different limitations, tests or
measurements to regulate the same or similar matters, and that such limitations,
tests and measurements are cumulative and must each be performed, except as
expressly stated to the contrary in this Agreement.

     

    1.03       Accounting
Principles.

     

    (a)           GAAP.  Unless
the context otherwise clearly requires, all accounting terms not expressly
defined herein shall be construed, and all financial computations required under
this Agreement shall be made, in accordance with GAAP, consistently
applied.

     

    (b)           Fiscal Year;
Quarter.  References herein to “fiscal year” and “fiscal
quarter” refer to such fiscal periods of the Borrower.

     

    ARTICLE
II

     

    THE
LOANS

     

    2.01       Amounts and Terms of
Commitments.

     

    (a)           Loans.  Each
Lender severally agrees, on the terms and conditions hereinafter set forth, to
make loans to the Borrower (each such loan, a “Loan” and all such
loans collectively, the “Loans”), and to
purchase participations in L/C Obligations, from time to time on any Business
Day during the period from the Closing Date to the Maturity Date, in an
aggregate amount not to exceed at any time the amount set forth opposite the
Lender's name in Schedule 2.01 (such
amount as the same may be reduced pursuant to Section 2.05 or
reduced or increased as a result of one or more assignments pursuant to Section 10.08, the
Lender's “Commitment”); provided, however, that, after
giving effect to any Loan, the Outstanding Amount shall not exceed the then
applicable Borrowing Base.  Within the foregoing limitations, and
subject to the other terms and conditions hereof, the Borrower may borrow under
this Section
2.01(a), repay or prepay pursuant to Section 2.06 and
reborrow pursuant to this Section
2.01(a).

     

    (b)           Use of
Proceeds.  The Borrower shall use the proceeds of all Loans for
the acquisition of new Properties or the financing of existing Properties, all
to be leased to Investment Grade Tenants and Non-Investment Grade Tenants
pursuant to Net Leases.

     

    2.02           Notes.  The
Loans made by each Lender shall be evidenced by a Note payable to the order of
that Lender in an amount equal to its Commitment.  Each Lender shall
endorse on the schedules annexed to its Note, the date, amount and maturity of
each Loan made by it and the amount of each payment of principal made by the
Borrower with respect thereto.  Each Lender is irrevocably authorized
by the Borrower to endorse its Note, and each Lender’s record shall be
conclusive absent manifest error; provided, however, that the
failure of a Lender to make, or an error in making, a notation thereon with
respect to any Loan shall not limit or otherwise affect the obligations of the
Borrower hereunder or under any such Note to such Lender.

     

    
      
         

      

      
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      2.03       Procedure for
Borrowing.

    

     

    (a)           Borrowing
Notice.  Each Loan shall be made upon the irrevocable written
notice (including notice via email confirmed immediately by a telephone call) of
the Borrower in the form of a Borrowing Notice, as follows:

     

    (i)          Timing of
Notice.  Each Borrowing Notice shall be submitted to and
received by the Agent prior to 11:00 a.m. (New York time) at least three (3)
Business Days prior to the specified borrowing date.

     

    (ii)         Contents of
Notice.  Each Borrowing Notice shall set forth the following
information with respect to the Loan subject thereto:

     

    (A)           a
single, specific borrowing date, which shall be a Business Day;

     

    (B)           a
single, exact amount for the Loan, which shall be in an aggregate minimum
principal amount of $1,000,000 or any multiple of $100,000 in excess
thereof;

     

    (C)           a
description of the intended use of the proceeds; and

     

    (D)           a
certification that the Borrower is in full compliance with all covenants
contained herein and that no Default or Event of Default exists under the Loan
Documents.

     

    (b)           Notice to
Lenders.  Upon receipt of a Borrowing Notice conforming with
the terms of Section
2.03(a), the Agent shall promptly notify each Lender thereof and of the
amount of such Lender's Commitment Percentage of the Loan described
therein.

     

    (c)           Funding of
Commitment.  Each Lender shall make the amount of its
Commitment Percentage of the Loan described in any Borrowing Notice available to
the Agent for the account of the Borrower at the Payment Office by 12:00 p.m.
(New York time) on the borrowing date specified therein in funds immediately
available to the Agent.  Unless any applicable condition specified in
Article IV has
not been satisfied, such funds shall then be made available to the Borrower by
the Agent at such office by crediting the account of the Borrower with the
aggregate of the amounts made available to the Agent by the Lenders (in like
funds as received by the Agent).

     

    
      
        
        

      

      
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    (d)           Frequency of
Borrowings.  No more than three (3) Borrowing Notices may be
given in any calendar month.

    
       

      2.04       Letter of Credit
Borrowings.

       

      (a)          The Letter of Credit
Commitment.

    

     

    (i)           Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.04, (1)
from time to time on any Business Day during the period from the Closing Date
until the Letter of Credit Expiration Date, to issue Letters of Credit for the
account of the Borrower, and to amend or extend Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to honor drawings
under the Letters of Credit; and (B) the Lenders severally agree to participate
in Letters of Credit issued for the account of the Borrower and any drawings
thereunder; provided that after
giving effect to any L/C Credit Extension with respect to any Letter of Credit,
(x) the Outstanding Amount shall not exceed the Aggregate Commitment, (y) the
aggregate Outstanding Amount of the Loans of any Lender, plus such Lender’s
Commitment Percentage of the Outstanding Amount of all L/C Obligations, shall
not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C
Obligations shall not exceed the Letter of Credit Sublimit.  Each
request by the Borrower for the issuance or amendment of a Letter of Credit
shall be deemed to be a representation by the Borrower that the L/C Credit
Extension so requested complies with the conditions set forth in the proviso to
the preceding sentence.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed and
terminated.

     

    (ii)           The
L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

     

    (A)           any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing the Letter
of Credit, or any applicable laws or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over
the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of letters of credit generally or the Letter of Credit in particular or
shall impose upon the L/C Issuer with respect to the Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems
material to it;

     

    
      
        
        

      

      
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    (B)           the
issuance of the Letter of Credit would violate one or more policies of the L/C
Issuer applicable to letters of credit generally;

     

    (C)           except
as otherwise agreed by the Agent and the L/C Issuer, the Letter of Credit is in
an initial stated amount less than $100,000; or

     

    (D)           such
Letter of Credit is to be denominated in a currency other than
Dollars.

     

    (iii)         The
L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue the Letter of Credit in its amended form (or as
so extended) under the terms hereof.

     

    (iv)         The
L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the
L/C Issuer would have no obligation at such time to issue the Letter of Credit
in its amended form under the terms hereof, or (B) the beneficiary of the Letter
of Credit does not accept the proposed amendment to the Letter of
Credit.

     

    (v)          The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer
shall have all of the benefits and immunities (A) provided to the Agent in
Article IX with
respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer
Documents pertaining to such Letters of Credit as fully as if the term “Agent”
as used in Article
IX included the L/C Issuer with respect to such acts or omissions, and
(B) as additionally provided herein with respect to the L/C Issuer.

     

    (b)          Procedures for Issuance and
Amendment of Letters of Credit;
Auto-Extension
Letters of Credit.

     

    (i)           Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the Agent)
in the form of a Letter of Credit Application, appropriately completed and
signed by a Responsible Officer of the Borrower.  Such Letter of
Credit Application must be received by the L/C Issuer and the Agent not later
than 11:00 a.m. at least five (5) Business Days (or such later date and time as
the Agent and the L/C Issuer may agree in a particular instance in their sole
discretion) prior to the proposed issuance date or date of amendment, as the
case may be.  In the case of a request for an initial issuance of a
Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount
thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; (G) the purpose
and nature of the requested Letter of Credit; and (H) such other matters as the
L/C Issuer may reasonably require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit Application
shall specify in form and detail satisfactory to the L/C Issuer (A) the Letter
of Credit to be amended; (B) the proposed date of amendment thereof (which shall
be a Business Day); (C) the nature of the proposed amendment; and (D) such other
matters as the L/C Issuer may reasonably require.  Additionally, the
Borrower shall furnish to the L/C Issuer and the Agent such other documents
and information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the Agent may
reasonably require.

    
      
         

      

      
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    (ii)           Within
five (5) Business Days following receipt of any Letter of Credit Application,
the L/C Issuer shall confirm with the Agent (by telephone or in writing) that
the Agent has received a copy of such Letter of Credit Application from the
Borrower and, if not, the L/C Issuer shall provide the Agent with a copy
thereof.  Unless the L/C Issuer has received written notice from any
Lender or the Agent, at least one Business Day prior to the requested date of
issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Article IV shall not
then be satisfied, then, subject to the terms and conditions hereof, the L/C
Issuer shall, on the requested date, issue a Letter of Credit for the account of
the Borrower or enter into the applicable amendment, as the case may be, in each
case in accordance with the L/C Issuer’s usual and customary business
practices.  Immediately upon the issuance of each Letter of Credit,
each Lender shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from the L/C Issuer a risk participation in such Letter of
Credit in an amount equal to the product of such Lender’s Commitment Percentage
times the
amount of such Letter of Credit.

     

    (iii)         If
the Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer may, in its sole discretion, agree to issue a Letter of Credit that has
automatic extension provisions (each, an “Auto-Extension Letter of
Credit”); provided that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any
such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Non-Extension Notice
Date”) in each such twelve-month period to be agreed upon at the time
such Letter of Credit is issued.  Unless otherwise directed by the L/C
Issuer, the Borrower shall not be required to make a specific request to the L/C
Issuer for any such extension.  Once an Auto-Extension Letter of
Credit has been issued, the Lenders shall be deemed to have authorized (but may
not require) the L/C Issuer to permit the extension of such Letter of Credit at
any time to an expiry date not later than the Letter of Credit Expiration Date;
provided, however, that the L/C
Issuer shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to
issue such Letter of Credit in its revised form (as extended) under the terms
hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.04(a) or
otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is seven Business Days before the
Non-Extension Notice Date (1) from the Agent that the Required Lenders have
elected not to permit such extension or (2) from the Agent, any Lender or the
Borrower that one or more of the applicable conditions specified in Section 4.02 is not
then satisfied, and in each such case directing the L/C Issuer not to permit
such extension.

     

    
      
        
        

      

      
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    (iv)         Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the L/C Issuer shall also deliver to the Borrower and the Agent a true and
complete copy of such Letter of Credit or amendment.

    (c)           Drawings and Reimbursements;
Funding of Participations.

     

    (i)           Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Agent thereof.  Not later than 11:00 a.m. on the first Business Day
following the date of any payment by the L/C Issuer under a Letter of Credit
(each such date, an “Honor Date”), the
Borrower shall reimburse the L/C Issuer through the Agent in an amount equal to
the amount of such drawing.  If the Borrower fails to so reimburse the
L/C Issuer by such time, the Agent shall promptly notify each Lender of the
Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed
Amount”), and the amount of such Lender’s Commitment Percentage
thereof.  In such event, the Borrower shall be deemed to have
requested a Loan to be disbursed on the Honor Date in an amount equal to the
Unreimbursed Amount, without regard to the minimum and multiples specified in
Section 2.03
for the principal amount of Loans, but subject to the amount of the unutilized
portion of the Aggregate Commitment and the conditions set forth in Section 4.02 (other
than the delivery of a Borrowing Notice).  Any notice given by the L/C
Issuer or the Agent pursuant to this Section 2.04(c)(i)
may be given by telephone if immediately confirmed in writing; provided that the
lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.

     

    (ii)          Each
Lender shall upon any notice pursuant to Section 2.04(c)(i)
make funds available (and the Agent may apply cash collateral provided for this
purpose) for the account of the L/C Issuer at the Agent’s Office in an amount
equal to its Commitment Percentage of the Unreimbursed Amount not later than
1:00 p.m. on the Business Day specified in such notice by the Agent, whereupon,
subject to the provisions of Section 2.04(c)(iii),
each Lender that so makes funds available shall be deemed to have made a Loan to
the Borrower in such amount.  The Agent shall remit the funds so
received to the L/C Issuer.

     

    (iii)         With
respect to any Unreimbursed Amount that is not fully refinanced by a Loan
because the conditions set forth in Section 4.02 cannot
be satisfied or for any other reason, the Borrower shall be deemed to have
incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed
Amount that is not so refinanced, which L/C Borrowing shall be due and payable
on demand (together with interest) and shall bear interest at the Default
Rate.  In such event, each Lender’s payment to the Agent for the
account of the L/C Issuer pursuant to Section 2.04(c)(ii)
shall be deemed payment in respect of its participation in such L/C Borrowing
and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section
2.04.

     

    
      
        
        

      

      
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    (iv)         Until
each Lender funds its Loan or L/C Advance pursuant to this Section 2.04(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Commitment Percentage of such amount shall
be solely for the account of the L/C Issuer.

    (v)          Each
Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer
for amounts drawn under Letters of Credit, as contemplated by this Section 2.04(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the L/C Issuer, the Borrower or
any other Person for any reason whatsoever; (B) the occurrence or continuance of
a Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 4.02 (other
than delivery by the Borrowing Notice).  No such making of an L/C
Advance shall relieve or otherwise impair the obligation of the Borrower to
reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer
under any Letter of Credit, together with interest as provided
herein.

     

    (vi)         If
any Lender fails to make available to the Agent for the account of the L/C
Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.04(c) by
the time specified in Section 2.04(c)(ii),
then, without limiting the other provisions of this Agreement, the L/C Issuer
shall be entitled to recover from such Lender (acting through the Agent), on
demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the L/C Issuer at a rate per annum equal to the greater of the Federal Funds
Rate and a rate determined by the L/C Issuer in accordance with banking industry
rules on interbank compensation, plus any administrative, processing or similar
fees customarily charged by the L/C Issuer in connection with the
foregoing.  If such Lender pays such amount (with interest and fees as
aforesaid), the amount so paid shall constitute such Lender’s Loan included in
the relevant borrowing or L/C Advance in respect of the relevant L/C Borrowing,
as the case may be.  A certificate of the L/C Issuer submitted to any
Lender (through the Agent) with respect to any amounts owing under this clause
(vi) shall be conclusive absent manifest error.  Nothing contained in
this Section
2.04(c)(vi) shall be deemed or otherwise construed to impose any
additional liability upon Borrower for any default by any Lender in the
performance of its obligations under this Section
2.04(c).

     

    (d)          Repayment of
Participations.

     

    (i)           At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.04(c), if
the Agent receives for the account of the L/C Issuer any payment in respect of
the related Unreimbursed Amount or interest thereon (whether directly from the
Borrower or otherwise), the Agent shall distribute to such Lender its Commitment
Percentage thereof in the same funds as those received by the
Agent.

     

    
      
        
        

      

      
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    (ii)          If
any payment received by the Agent for the account of the L/C Issuer pursuant to
Section
2.04(c)(i) is required to be returned under any of the circumstances
described in Section
10.06 (including pursuant to any settlement entered into by the L/C
Issuer in its discretion), each Lender shall pay to the Agent for the account of
the L/C Issuer its Commitment Percentage thereof on demand of the Agent, plus
interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate
from time to time in effect.  The obligations of the Lenders under
this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

    (e)           Obligations
Absolute. The obligation of the
Borrower to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

     

    (i)           any
lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     

    (ii)          the
existence of any claim, counterclaim, setoff, defense or other right that the
REIT, the Borrower or any Subsidiary may have at any time against any
beneficiary or any transferee of such Letter of Credit (or any Person for whom
any such beneficiary or any such transferee may be acting), the L/C Issuer or
any other Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument
relating thereto, or any unrelated transaction;

     

    (iii)         any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any material respect; or
any loss or delay in the transmission or otherwise of any document required in
order to make a drawing under such Letter of Credit;

     

    (iv)         any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter
of Credit; provided that the payment by the L/C Issuer does not constitute gross
negligence of the L/C Issuer; or any payment made by the L/C Issuer under such
Letter of Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with
any Insolvency Proceeding; or

     

    
      
        
        

      

      
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    (v)         any
other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a
defense available to, or a discharge of, the Borrower or any
Subsidiary.

     

    The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower shall immediately notify the L/C Issuer.  The Borrower shall
be conclusively deemed to have waived any such claim against the L/C Issuer and
its correspondents unless such notice is given as aforesaid.

    (f)           Role of L/C
Issuer. Each
Lender and the Borrower agree that, in paying any drawing under a Letter of
Credit, the L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or to ascertain or inquire as to the validity or accuracy
of any such document or the authority of the Person executing or delivering any
such document.  None of the L/C Issuer, the Agent, any of their
respective Affiliates nor any correspondent, participant or assignee of the L/C
Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders; (ii) any
action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document.  The Borrower hereby assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any Letter
of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower’s pursuing
such rights and remedies as it may have against the beneficiary or transferee at
law or under any other agreement.  None of the L/C Issuer, the Agent,
any of their respective Affiliates nor any correspondent, participant or
assignee of the L/C Issuer shall be liable or responsible for any of the matters
described in clauses (i) through (v) of Section 2.04(e);
provided, however, that
anything in such clauses to the contrary notwithstanding, the Borrower may have
a claim against the L/C Issuer, and the L/C Issuer may be liable to the
Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower which the Borrower
proves were caused by the L/C Issuer’s willful misconduct or gross negligence or
the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not
in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a 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.

     

    (g)          Letter of Credit
Fees.  The Borrower shall pay to the Agent for the account of
each Lender in accordance with its Commitment Percentage a Letter of Credit fee
(the “Letter of Credit
Fee”) for each Letter of Credit equal to one and one half percent (1.5%)
times the daily
amount available to be drawn under such Letter of Credit.  For
purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section
2.04(j).  Letter of Credit Fees shall be due and payable upon
the issuance of the Letter of Credit.  Notwithstanding anything to the
contrary contained herein, while any Event of Default exists, all Letter of
Credit Fees shall accrue at the Default Rate.

     

    
      
        
        

      

      
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    (h)          Documentary and Processing
Charges Payable to L/C Issuer. The Borrower shall pay
directly to the L/C Issuer for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of the L/C Issuer relating to Letters of Credit as from time to time in
effect.  Such customary fees and standard costs and charges are due
and payable on demand and are nonrefundable.

    (i)           Conflict with Issuer
Documents.  In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall
control.

     

    (j)           Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided,
however, that
with respect to any Letter of Credit that, by its terms or the terms of any
Issuer Document related thereto, provides for one or more automatic increases in
the stated amount thereof, the amount of such Letter of Credit shall be deemed
to be the maximum stated amount of such Letter of Credit after giving effect to
all such increases, whether or not such maximum stated amount is in effect at
such time.

     

    2.05         Voluntary Termination or
Reduction of Commitments.  The Borrower may, upon not less than
five (5) Business Days' prior notice to the Agent, terminate the Aggregate
Commitment or permanently reduce the Aggregate Commitment by an aggregate
minimum amount of $1,000,000 or an integral multiple of $100,000 in excess
thereof; provided that no such
termination or reduction shall be permitted if, after giving effect thereto and
to any prepayments of the Loans made on the effective date thereof, the
Outstanding Amount would exceed the amount of the Aggregate Commitment or
Borrowing Base then in effect and, provided, further, that once
reduced in accordance with this Section 2.05, the
Aggregate Commitment may not be increased.  Any reduction of the
Aggregate Commitment shall be applied to each Lender's Commitment in accordance
with such Lender's Commitment Percentage.  If the Commitments are
terminated in their entirety, all accrued commitment fees under Section 2.11(b) to,
but not including, the effective date of such termination shall be payable on
the effective date of such termination.

     

    2.06         Optional
Prepayments.  Subject to Section 3.04, the
Borrower may, at any time and from time to time, without premium or penalty,
ratably prepay Loans in whole or in part, in an aggregate minimum amount of
$500,000 or an integral multiple of $100,000 in excess thereof, upon at least
three (3) Business Days' prior notice.  Such notice of prepayment
shall specify (i) the amount of such prepayment, and (ii) the date of
such prepayment, which shall be a Business Day.  Such notice shall not
thereafter be revocable by the Borrower, and the Agent shall promptly notify
each Lender thereof and of such Lender's Commitment Percentage of such
prepayment.  If a prepayment notice is given, the payment amount
specified therein shall be due and payable on the date specified therein,
together with accrued interest to such date on the amount prepaid and any
amounts required to be paid pursuant to Section
3.04.

     

    
      
        
        

      

      
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    2.07         Mandatory Prepayments of
Loans.  If at any time the Outstanding Amount exceeds the then
applicable Borrowing Base, the Borrower shall, within ten (10) days thereafter,
prepay Loans in an amount sufficient to reduce the Outstanding Amount to the
then applicable Borrowing Base.  In addition, if at any time Borrower
is not in compliance with the covenants contained in Sections 7.16(e) and
(f), then
Borrower shall, within thirty (30) days thereafter, prepay Loans in an amount
sufficient to cause Borrower to comply with such covenants. 

     

    2.08         Application of
Proceeds.  Any prepayments pursuant to Section 2.06 or Section 2.07 made by
the Borrower shall be applied first to any outstanding interest due on the
Loans, then to any outstanding principal due on the Loans.

    2.09        Maturity Date; Extension of
Maturity Date.  

     

    (a)          Initial Maturity
Date.  Subject to extension pursuant to the terms and
conditions set forth in clause (b) of this Section 2.09 and
subject to the provisions of clause (c) of this Section 2.09, the
Borrower shall cause the Obligations (including, without limitation, all
outstanding principal and interest on the Loans and all fees, costs and expenses
due and owing under the Loan Documents) to be Fully Satisfied on the Maturity
Date.

     

    (b)          Extended Maturity Date
Option.  Not less than forty-five (45) days prior to the
original Maturity Date, the Borrower may request in writing that the Agent
extend the term of this Agreement (if not previously terminated) to January 31,
2014 (the end of such period being the “Extended Maturity
Date”).  Each Lender agrees that the Maturity Date of the Loans
shall be extended following such a request from the Borrower subject to
satisfaction of the following terms and conditions:

     

    (i)           no
Default or Event of Default shall have occurred and be continuing on the date of
such extension and after giving effect thereto;

     

    (ii)          the
Outstanding Amount shall be less than the Borrowing Base; and

     

    (iii)         the
Borrower shall, at the original Maturity Date, pay to the Agent (for the pro
rata benefit of the Lenders based on their respective Commitment Percentage as
of such date) an extension fee equal to 0.25% of the Aggregate
Commitment.

     

    (c)          Additional Conditions for
Extension.  In connection with such extension, and as further
conditions thereto:

     

    (i)           The
Borrower shall deliver to the Agent a Solvency Certificate executed on behalf of
the Borrower and each of the Subsidiary Guarantors (with respect to the Solvency
of the Borrower and each Subsidiary Guarantor both before and after giving
effect to such extension) and a certificate of the Borrower and each Subsidiary
Guarantor dated as of the original Maturity Date signed by a Responsible Officer
(A) certifying and attaching the resolutions adopted by such Person approving or consenting
to such extension and updated financial projects for the Borrower and the REIT
through the Extended Maturity Date and (B) certifying that, before and after
giving effect to such extension, (1) the representations and warranties
contained in Article
V and the other Loan Documents are true and correct in all material
respects on and as of the original Maturity Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and (2) no Default or
Event of Default exists;

    
      
         

      

      
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    (ii)          The
Borrower and each of the Subsidiary Guarantors shall deliver to the Agent such
reaffirmations of their respective obligations under the Loan Documents (after
giving effect to the extension), and acknowledgments and certifications that
they have no claims, offsets or defenses with respect to the payment or
performance of any of the Obligations, including, without limitation, (A) if
reasonably requested by Agent, an agreement supplementing each of the Mortgages
to reflect the extension and reaffirming the Mortgages after giving effect to
such extension, executed by each Subsidiary Guarantor and in form for; (B)
reaffirmations of each of the Subsidiary Guaranties; all of which shall be in
form and substance satisfactory to the Agent and (C) a reaffirmation of the
Contribution Agreement, executed by each Subsidiary Guarantor; all of which
shall be in form and substance satisfactory to the Agent;

     

    (iii)         If
reasonably requested by Agent, the title insurance company that issued the Title
Policies shall have recorded the agreements supplementing the Mortgages, and
shall have issued such endorsements to the Title Policies and reinsurance
agreements to the effect that the validity and priority of the Mortgages insured
thereunder have not been and will not be impaired by such extension, and
confirming the priority of each Mortgage, as supplemented, over all matters
other than Permitted Exceptions (including, without limitation, over all
mechanics’ and materialmen’s liens); and

     

    (iv)        The
Borrower shall have paid any costs or expenses incurred by the Agent with
respect to such extension and the documents to be delivered in connection
therewith.

     

    (d)          Satisfaction of Obligations
Upon Acceleration.  Notwithstanding anything contained herein
or in any other Loan Document to the contrary, to the extent any of the
Obligations are accelerated pursuant to the terms hereof, the Borrower shall,
immediately upon the occurrence of such acceleration, cause such accelerated
Obligations to be Fully Satisfied.

     

    2.10        Interest.

     

    (a)          Rates.  Subject
to Section
2.10(c), each Loan shall bear interest on the outstanding principal
amount thereof from the date such Loan is made until the date such Loan is
repaid, at a rate per annum equal to the LIBOR Rate plus the Applicable
Margin.  Not less than five (5) Business Days prior to the first day
of each Interest Period, Borrower shall provide Agent with written notice of
whether it elects a one-month or three-month LIBOR Base Rate for such Interest
Period.  If Borrower fails to make any such election, the interest
rate for such Interest Period shall automatically be based on a one-month LIBOR
Base Rate.

     

    
      
        
        

      

      
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    (b)          Payment
Dates.  Interest on each Loan for each Interest Period shall be
payable in arrears on each Interest Payment Date and the Maturity
Date.  Interest shall also be payable on the date of any prepayment of
Loans pursuant to Section 2.06 or Section 2.07 for the
portion of the Loans so prepaid.  During the existence of any Event of
Default, interest shall be payable on demand.

     

    (c)          Default
Rates.  While any Event of Default exists or after
acceleration, and after as well as before any entry of judgment thereon, the
Borrower shall pay interest (after as well as before judgment to the extent
permitted by law) on all outstanding Obligations at a rate equal to (a)
twenty-four percent (24%) per annum if any monetary Event of Default has
occurred and is continuing or (b) twelve percent (12%) if only non-monetary
Events of Default have occurred and are continuing (as applicable, the “Default
Rate”).

    (d)          Limitations for Applicable
Law.  Anything herein to the contrary notwithstanding, payments
of interest shall not be required, for any period for which interest is computed
hereunder, to the extent (but only to the extent) that contracting for or
receiving such payments by the respective Lender would be contrary to the
provisions of any law applicable to such Lender limiting the highest rate of
interest which may be lawfully contracted for, charged or received by such
Lender, and in such event the Borrower shall pay such Lender interest at the
highest rate permitted by applicable law.

     

    2.11       Fees.

     

    (a)          Facility
Fees.  Upon the due execution and delivery of this Agreement by
the Borrower, the Agent and each of the Lenders which are the initial Lenders
party to this Agreement, the Borrower shall pay to each such Lender an amount
equal to 0.5% of such Lender's Commitment as a facility fee, in each case for
the recipient's own account.

     

    (b)          Commitment
Fees.  Commencing on the date hereof, the Borrower shall pay to
the Agent for the account of each Lender ratably a commitment fee on the average
daily unused portion of such Lender's Commitment equal to 0.25% per
annum.  Such commitment fee shall be due and payable in arrears
quarterly on the last Business Day of each March, June, September, and December
(commencing on September 30, 2010) and on the Maturity Date.

     

    2.12       Computation of Fees and
Interest.

     

    (a)          Computation
Period.  All computations of fees and interest under this
Agreement shall be made on the basis of a 360-day year and actual days
elapsed.  Interest and fees shall accrue during each Interest Period
for which interest or fees are computed from the first day thereof to the last
day thereof.

     

    (b)          Notice.  The
Agent shall, with reasonable promptness, notify the Borrower and the Lenders of
each determination of a LIBOR Rate, provided that no
failure to do so shall relieve the Borrower of any obligation
hereunder.  Any change in the interest rate on a Loan resulting from a
change in the Reserve Requirement shall become effective as of the opening of
business on the day on which such change becomes effective.  The Agent
shall with reasonable promptness notify the Borrower and the Lenders of the
effective date and the amount of each such change, provided that no
failure to do so shall relieve the Borrower of any obligation
hereunder.  Each determination of an interest rate by the Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower and the Lenders in the absence of manifest error.

    
      
         

      

      
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    2.13       Payments by the
Borrower.

     

    (a)          Terms of
Payments.  All payments (including prepayments) to be made by
the Borrower on account of principal, interest, fees and other amounts required
hereunder shall be made without setoff or counterclaim and shall, except as
otherwise expressly provided herein, be made to the Agent for the ratable
account of the Lenders at the Payment Office, in dollars and in immediately
available funds, no later than 3:00 p.m. (New York time) on the date specified
herein.  The Agent shall promptly distribute to each Lender its
Commitment Percentage (or other applicable share as expressly provided herein)
of such principal, interest, fees or other amounts (in like funds as
received).  Any payment which is received by the Agent later than 3:00
p.m. (New York time) shall be deemed to have been received on the immediately
succeeding Business Day, and any applicable interest or fee shall continue to
accrue.  Notwithstanding the forgoing, all monthly interest
payments shall be made by automatic debit on each Interest Payment Date from
account number 7047580255 established by Borrower
at Capital One, or other accounts maintained at Capital One in which Borrower
maintains balances sufficient to pay the monthly interest payments
(collectively, the “Borrower
Accounts”).  

     

    (b)          Business
Days.  Whenever any payment hereunder shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall be included in the
computation of interest or fees, as the case may be.

     

    (c)          Reliance of Agent on
Payments by the Borrower.  Unless the Agent shall have received
notice from the Borrower prior to the date on which any payment is due to the
Lenders hereunder that the Borrower will not make such payment in full, the
Agent may assume that the Borrower has made such payment in full to the Agent on
such date, and the Agent may (but shall not be required to), in reliance upon
such assumption, cause to be distributed to each Lender on such due date the
amount then due such Lender.  If and to the extent the Borrower shall
not have made such payment in full to the Agent, each Lender shall repay to the
Agent on demand such amount distributed to such Lender, together with interest
thereon for each day from the date such amount is distributed to such Lender
until the date such Lender repays such amount to the Agent, at the Federal Funds
Rate as in effect for each such day.

     

    (d)          Late Payment
Charge.  If Borrower shall fail to make any payment due
hereunder or under the terms of any Note (other than the payment of principal
due on the Maturity Date) (and if sufficient funds are not on deposit in the
Borrower Accounts to make such payment), Borrower shall pay to the Agent for the
account of the Lenders to whom such payment is due on demand a late charge equal
to four percent (4%) of such payment.  This “late charge” is imposed
for the purpose of defraying the expenses of a Lender incident to handling such
late payment.  This charge shall be in addition to, and not in lieu
of, any other remedy the Agent or the Lenders may have and is in addition to any
fees and charges of any agents or attorneys which Agent or Lenders may employ
upon the occurrence of a Default or Event of Default.

    
      
         

      

      
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    2.14       Payments by the Lenders to
the Agent.

     

    (a)          Reliance of Agent on
Payments by the Lenders.  Unless the Agent shall have received
notice from a Lender on the Closing Date or, with respect to each borrowing
after the Closing Date, at least one (1) Business Day prior to the date of any
proposed borrowing, that such Lender will not make available to the Agent for
the account of the Borrower the amount of that Lender's Commitment Percentage of
the Loan to be funded on such date, the Agent may assume that each Lender has
made such amount available to the Agent on the borrowing date, and the Agent may
(but shall not be required to), in reliance upon such assumption, make available
to the Borrower a corresponding amount on such date.  If and to the
extent any Lender shall not have made its full amount available to the Agent and
the Agent in such circumstances has made available to the Borrower such amount,
that Lender shall on the next Business Day following the date of such borrowing
make such amount available to the Agent, together with interest at the Federal
Funds Rate for and determined as of each day during such period.  A
certificate of the Agent submitted to any Lender with respect to amounts owing
under this Section
2.14(a) shall be conclusive, absent manifest error.  If such
amount is so made available, such payment to the Agent shall constitute such
Lender's Loan (as of the date of the borrowing) for all purposes of this
Agreement.  If such amount is not made available to the Agent on the
next Business Day following the borrowing date, the Agent shall notify the
Borrower of such failure to fund and, upon demand by the Agent, the Borrower
shall pay such amount to the Agent for the Agent's account, together with
interest thereon for each day elapsed since the date of such borrowing, at a
rate per annum equal to the interest rate applicable at the time to the Loans
comprising such borrowing.

     

    (b)          Obligations of Agent;
Lender.  The failure of any Lender to make any Loan on any date
of borrowing shall not relieve any other Lender of any obligation hereunder to
make a Loan on the date of such borrowing, but no Lender shall be responsible
for the failure of any other Lender to make the Loan to be made by such other
Lender on the date of any borrowing.

     

    2.15        Sharing of Payments,
Etc.  If, other than as expressly contemplated elsewhere
herein, any Lender shall obtain on account of the Loans made by it any payment
(whether voluntary, involuntary, through  exercise of any right of
setoff, or otherwise) in excess of its Commitment Percentage of payments on
account of the Loans obtained by all the Lenders, such Lender shall forthwith
(a) notify the Agent of such fact, and (b) purchase from the other
Lenders such participations in the Loans made by them as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with each of
them; provided,
however, that
if all or any portion of such excess payment is thereafter recovered from the
purchasing Lender, such purchase shall to that extent be rescinded and each
other Lender shall repay to the purchasing Lender the purchase price paid
thereto together with a percentage (calculated by dividing (i) the amount
of such paying Lender's required repayment by (ii) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so
recovered.  The Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.15 may, to
the fullest extent permitted by law, exercise all of such purchasing Lender's
rights of payment (including the right of setoff, but subject to Section 10.08) with
respect to such participation as fully as if such purchasing Lender were the
direct creditor of the Borrower in the amount of such
participation.  The Agent shall keep records (which shall be
conclusive and binding in the absence of manifest error) of participations
purchased pursuant to this Section 2.15 and
shall in each case notify the Lenders following any such
purchases.

    
      
         

      

      
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    2.16        Security;
Additions  to and Release of Borrowing Base
Properties.  

     

    (a)          Additions of Borrowing Base
Properties.  As of the Closing Date, the Borrowing Base
Properties hereunder shall be the Borrowing Base Properties listed on Schedule
2.16.  Additional Properties may be offered by the Borrower for
inclusion as additional Borrowing Base Properties hereunder only in accordance
with the following (and any other applicable terms and conditions contained in
this Agreement):

     

    (i)           Request for Addition of
Borrowing Base Properties.  The Borrower from time to time may
request that any Property that satisfies the criteria set forth in clauses (b),
(c), (d), (e), (f), (g) and (h) set forth in the definition of the term
“Borrowing Base Property” (a “Nominated Property”),
be accepted as Collateral and included as a Borrowing Base Property by
delivering to Agent a written request therefor.  Within ten (10)
Business Days following the receipt of the Borrower’s request, Agent shall order
an Appraisal of such Property, which shall be performed at the Borrower’s
expense.

     

    (ii)          Due Diligence Review of
Nominated Property.  In order to assist Agent in its evaluation
of such Nominated Property, the Borrower shall at its expense provide the Agent
with the following due diligence materials and information with respect to any
Nominated Property:

     

    (A)          a
commitment for a Title Policy with respect to the Nominated Property meeting the
requirements set forth in clause (b) of the definition of “Borrowing Base
Deliverables;”

     

    (B)          a
survey meeting the requirements set forth in clause (c) of the definition of
“Borrowing Base Deliverables;”

     

    (C)          property
condition, engineering, soils and other reports, if required, evidence as to the
status of such Nominated Property as a Flood Hazard Property, an environmental
site assessment and other reports, studies and evidence meeting the requirements
set forth in clauses (d), (i), (j), (k) and if applicable (m) of the definition
of “Borrowing Base Deliverables;”

     

    (D)          copies
of all Leases with respect to such Nominated Property and estoppel certificates
and subordination, non-disturbance and attornment agreements that meet the
requirements set forth in clause (e) of the definition of “Borrowing Base
Deliverables;”

     

    
      
        
        

      

      
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    (E)           if
the Nominated Property is subject to a ground lease, copies of the ground lease
along with the other materials relating thereto meeting required pursuant to
clause (f) of the definition of “Borrowing Base Deliverables;”

     

    (F)           evidence
of the ability of the Borrower to provide insurance in compliance with the
requirements set forth in clause (g) of the definition of “Borrowing Base
Deliverables;”

    (G)          UCC
searches with respect to the existing or proposed owner or lessor of the
Nominated Property;

     

    (H)          copies
of permanent and unconditional certificates of occupancy for such Nominated
Property, if available;

     

    (I)          
 identification of the Subsidiary that owns or will be acquiring such
property, together with such Organizational Documents, financial information and
other information with respect to such Subsidiary as the Agent may reasonably
request;

     

    (J)           current,
certified rent roll and other reports of the financial and operating results
(for the most recent 12-month period) and projections for the Nominated Property
in such format as the Agent may reasonably require;

     

    (K)          in
the case of an acquisition, a copy of the purchase and sale agreement(s) by
which the owner will acquire the fee title to, or ground lease interest in, the
Nominated Property; and

     

    (L)          such
other Borrowing Base Deliverables, evidence of the satisfaction with respect to
such Nominated Property of the requirements set forth in the definition of
“Borrowing Base Property,” and other items pertaining to the Nominated Property
as the Agent may reasonably request.

     

    The Agent
shall review the foregoing materials and endeavor to notify the Borrower and the
Lenders within fifteen (15) days of receipt of all of the items described in
clauses (A) through (L) above and receipt of the Appraisal described in Section 2.16(a)(iii)(A)
whether it is willing to accept the applicable Nominated Property as a Borrowing
Base Property, which acceptance shall be in the Agent’s discretion and shall
also be subject to the satisfaction of the conditions set forth in Section 2.16(a)(iii).   All
reasonable costs and expenses incurred by the Agent in reviewing the due
diligence materials described above, and in connection with the consideration of
a Nominated Property, and in documenting the addition of such Nominated Property
as a Borrowing Base Property, shall be for the account of the
Borrower.

     

    
      
        
        

      

      
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    (iii)         Conditions to Addition of
Nominated Property as a Borrowing Base Property.  Each of the
following conditions must be satisfied prior to any Nominated Property becoming
a Borrowing Base Property hereunder:

     

    (A)          Appraisal.  The
Agent shall have received and reviewed an Appraisal for the Nominated Property
that meets the requirements of clause (h) of the definition of “Borrowing Base
Deliverables.”

    (B)          Guaranty and Collateral
Documents.  The Borrower shall have caused the applicable
Subsidiary Guarantor to deliver, to the Agent, at the Borrower’s sole expense, a
Subsidiary Guarantor and Collateral Documents meeting the requirements of clause
(a) of the definition of “Borrowing Base Deliverables,” a Solvency Certificate
executed on behalf of such wholly-owned Subsidiary and the Borrower and each
other Subsidiary Guarantor that will remain obligated under the Loan Documents
and such updates to the Schedules attached hereto as would be required to
reflect the addition of such Nominated Property as a Borrowing Base Property or
the addition of such Subsidiary as a Subsidiary Guarantor.  In
addition, all actions shall have been taken consistent with clause (l) of the
definition of “Borrowing Base Deliverables” in order to create a valid first and
subsisting Lien on the property described in the Mortgage encumbering such
Nominated Property.

     

    (C)          Title
Assurances.  The Agent shall have received confirmation
satisfactory to the Agent of the effectiveness of a Title Policy for such new
Borrowing Base Property meeting the requirements of clause (b) of the definition
of “Borrowing Base Deliverables.”

     

    (D)          Insurance.  The
Borrower shall have provided, or caused to be provided, to the Agent the
insurance policies required for such Nominated Property meeting the requirements
of clause (g) of the definition of “Borrowing Base Deliverables,” together with
evidence of the payment of premiums therefor that are then due and
payable.

     

    (E)          Legal
Opinions.  The Borrower shall have delivered to the Agent, if
required by the Agent, such opinions of counsel as to such wholly-owned
Subsidiary and the Mortgage and other Collateral Documents for such Borrowing
Base Property as may be consistent with the types and forms of legal opinions
delivered with respect to such matters as were delivered prior to the initial
borrowing hereunder, including, without limitation, any local-counsel opinion
requested by the Agent.

     

    (F)          Officer’s
Certificate.  The Borrower shall have delivered to the Agent an
officer’s certificate certifying (i) that no Default has occurred and is
continuing; (ii) that the conditions precedent set forth in Section 2.16(a)(iii)
have been satisfied; (iii) that all financial and operating information
delivered to the Agent pursuant to Section 2.16(a)(ii)
is complete and correct in all material respects; (iv) that all
representations and warranties relating to Subsidiary Guarantors and Borrowing
Base Properties set forth in this Agreement are true and correct as to the
wholly-owned subsidiary that is the owner of such Nominated Property and as to
such Nominated Property as of the date on which it is to be added as a Borrowing
Base Property; that such Nominated Property complies with all covenants set
forth herein as of such date; and (v) in the case of an acquisition, the
purchase price for the Nominated Property, upon which the Agent and the Lenders
shall be entitled to rely.

     

    
      
        
        

      

      
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    (G)          Disbursements.  The
Borrower shall have paid all reasonable costs and expenses incurred by the Agent
in reviewing the due diligence materials described above, and in connection with
the consideration of a Nominated Property, and in documenting the addition of
such Nominated Property as a Borrowing Base Property, including Attorney
Costs.

    (H)          Affirmation.  The
Borrower and each Subsidiary Guarantor shall have reaffirmed its obligations
under each Loan Document to which it is a party, in form and substance
satisfactory to the Agent.

     

    (iv)        Timing of Inclusion of New
Borrowing Base Property; Requirements for Agent
Approval.  Notwithstanding anything to the contrary contained
herein, (A) no Property shall be added as a Borrowing Base Property (or
treated as such) unless such property is nominated as a Nominated Property
pursuant to Section 2.16(a)(i),
is approved for inclusion as a Borrowing Base Property pursuant to Sections 2.16(a)(ii),
and satisfies the conditions for inclusion as a Borrowing Base Property pursuant
to Sections 2.16(a)(iii).  Promptly
upon such Property being added as a Borrowing Base Property, the Agent shall
notify the Borrower and the Lenders thereof.

     

    (v)         Appraisals; Third Party
Reports.  The Borrower shall, and shall cause the applicable
Subsidiary Guarantor to, cooperate with the appraisers performing any Appraisal
and other service providers providing reports with respect to the Nominated
Property, including by providing the appraisers and other service providers with
access to the Nominated Property and the books and records of the Borrower or
such Subsidiary Guarantor related thereto.

     

    (b)          Notwithstanding
anything contained herein to the contrary, to the extent any Property
previously-qualifying as a Borrowing Base Property ceases to meet the criteria
for qualification as such, such property shall be immediately removed from all
financial covenant and Borrowing Base-related calculations contained
herein.  Any such property shall immediately cease to be a “Borrowing
Base Property” hereunder, Schedule 2.16
attached hereto shall be deemed to have been immediately amended to remove such
Property from the list of Borrowing Base Properties and the Borrower shall be
required, within five (5) Business Days after such property ceases to qualify as
a Borrowing Base Property, to satisfy all of the conditions set forth in clauses
(A) through
(C) of Section 2.16(c) with
respect to the release of such Borrowing Base Property.

     

    
      
        
        

      

      
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    (c)          Except
as set forth in this Section 2.16(c),
or unless the Obligations (other than inchoate indemnity obligations) have been
Fully Satisfied, neither the Borrower nor any Subsidiary Guarantor shall have
the right to obtain the release of any Borrowing Base Property from the Lien of
the Loan Documents, and no repayment or prepayment of any portion of the Loan
shall cause or otherwise result in, the release of the Lien of any Mortgage on
any Borrowing Base Property or any other Collateral.

     

    (i)           At
any time following the Closing Date, the Borrower on one or more occasions may
obtain, and the Agent shall take such actions as are necessary to effectuate
pursuant to this Section 2.16(c)(i),
the release of the entirety of any Borrowing Base Property from the Lien of the
Mortgages (and related Loan Documents) thereon and the release of the Borrower’s
and the respective Subsidiary Guarantor’s obligations under the Loan Documents
with respect to such Borrowing Base Property (other than those which expressly
survive repayment, including, but not limited to, those set forth in the
Environmental Indemnity Agreement), upon satisfaction of each of the following
conditions:

    (A)         The
Borrower shall submit to the Agent (on behalf of the Lenders), by
1:00 p.m., at least ten (10) days prior to the date of the proposed
release, written notice of its election to obtain such release (which notice
shall include a certification by a Responsible Officer that the proposed release
complies with all of the conditions set forth in Section 2.16(c)(i)),
a Solvency Certificate executed on behalf of the Borrower and each of the
Subsidiary Guarantors that will remain obligated under the Loan Documents after
giving effect to such release (with respect to the Solvency of the Borrower and
each Subsidiary Guarantor both before and after giving effect to such release),
a Compliance Certificate with respect to such removal in accordance with the
terms of Section
6.02 hereof after giving effect to such release, together with the form
or forms for a release of Lien and related Loan Documents for such Borrowing
Base Property for execution by the Agent, which the Agent shall execute and
deliver to the applicable Subsidiary Guarantor, for recordation upon
satisfaction of all conditions set forth in this Section 2.16(c)(i).  Such
release shall be in a form appropriate for recordation in each jurisdiction in
which the applicable Borrowing Base Property is located and reasonably
satisfactory to the Agent and its counsel;

     

    (B)          If
after giving effect to such release, the Outstanding Amount would exceed the
Borrowing Base, then the Borrower shall, prior to the effectiveness of such
release, make a prepayment in the amount of such excess pursuant to Section 2.06; the
minimum increment requirements of Section 2.06
shall not apply to a prepayment made in accordance with this Section 2.16(c)(i)(B);
and

     

    (C)          No
Default or Event of Default shall exist at the time of the Borrower’s request or
on the date of the proposed release or after giving effect thereto (other than a
Default that would be cured by effectuating such release).

     

    
      
        
        

      

      
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    (ii)          Upon
satisfaction of the foregoing conditions with respect to the release of a
Borrowing Base Property including a release pursuant to Section 2.16(b), (i)
Schedule 2.16
shall be immediately amended to remove such Property from the list of Borrowing
Base Properties, and such Property shall no longer be considered a “Borrowing
Base Property” for purposes of this Agreement or the other Loan Documents
(except for purposes of those indemnification obligations and other covenants
which, by their terms, expressly survive any such release); (ii) all Liens in
favor of the Agent or the Lenders on such Property shall be released promptly by
the Agent pursuant to Section 2.16(c)(i)(A);
and (iii) if the Subsidiary that owns such Property no longer owns any Property
qualified as a Borrowing Base Property, such Subsidiary shall no longer be a
Subsidiary Guarantor hereunder and Schedule 2.16 shall
be amended to reflect the removal of such Subsidiary as a Subsidiary Guarantor
(except for purposes of those indemnification obligations and other covenants
which, by their terms, expressly survive any such removal).  It is
understood and agreed that no such release shall affect any covenants or other
provisions of the Loan Documents that apply to such released Subsidiary as a
“Subsidiary” or “Affiliate” or impair or otherwise adversely affect the Liens,
security interests and other rights of the Agent or the Lenders under the Loan
Documents not being released (or as to the parties to the Loan Documents and
Borrowing Base Properties subject to the Loan Documents not being
released).

     

    ARTICLE
III

     

    TAXES, YIELD PROTECTION AND
ILLEGALITY

     

    3.01        Taxes.

     

    (a)          Subject
to Section
3.01(g), any and all payments by the Borrower to the Agent or the Lenders
under this Agreement shall be made free and clear of, and without deduction or
withholding for, any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding such taxes (including income taxes or franchise taxes) as are imposed
on or measured by the recipient's net income by the jurisdiction under the laws
of which the recipient is organized or maintains a Lending Office, or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to
as “Taxes”).

     

    (b)          In
addition, the Borrower shall pay any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies which
arise from any payment made hereunder or from the execution, delivery,
recordation or registration of, or otherwise with respect to, this Agreement or
any other Loan Documents (hereinafter referred to as “Other
Taxes”).

     

    (c)          Subject
to Section
3.01(g), the Borrower shall indemnify and hold harmless the Agent and
each Lender for the full amount of Taxes or Other Taxes (including any Taxes or
Other Taxes imposed by any jurisdiction on amounts payable under this Section 3.01) paid by
the Agent or such Lender and any liability (including penalties, interest,
additions to tax and expenses) arising therefrom or with respect thereto,
whether or not such Taxes or Other Taxes were correctly or legally
asserted.  Payment under this indemnification shall be made within
thirty (30) days from the date the Agent or any Lender makes written demand
therefor.

     

    
      
        
        

      

      
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    (d)          If
the Borrower shall be required by law to deduct or withhold any Taxes or Other
Taxes from or in respect of any sum payable hereunder to the Agent or any
Lender, then, subject to Section
3.01(g):

     

    (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
3.01) the Agent or such Lender, as the case may be, receives an amount
equal to the sum it would have received had no such deductions been
made;

    (ii)          the
Borrower shall make such deductions; and

     

    (iii)         the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law.

     

    (e)          Within
thirty (30) days after the date of any payment by the Borrower of Taxes or Other
Taxes, the Borrower shall furnish to the Agent the original or a certified copy
of a receipt evidencing payment thereof, or other evidence of payment
satisfactory to the Agent.

     

    (f)           Each
Lender which is a foreign person (i.e., a person other than a United States
person for United States Federal income tax purposes) agrees that:

     

    (i)           such
Lender shall, no later than the Closing Date (or, in the case of a Lender which
becomes a party hereto pursuant to Section 10.08 after
the Closing Date, the date upon which such Lender becomes a party hereto),
deliver to the Borrower through the Agent two (2) accurate and complete signed
originals of Internal Revenue Service Form 4224 or any successor thereto (“Form 4224”), or two
(2) accurate and complete signed originals of Internal Revenue Service Form 1001
or any successor thereto (“Form 1001”), as
appropriate, in each case indicating that the Lender is on the date of delivery
thereof entitled to receive payments of principal, interest and fees under this
Agreement free from withholding of United States Federal income
tax;

     

    (ii)          if
at any time such Lender makes any changes necessitating a new form, such Lender
shall with reasonable promptness deliver to the Borrower through the Agent in
replacement for, or in addition to, the forms previously delivered by such
Lender hereunder, two (2) accurate and complete signed originals of Form 4224,
or two (2) accurate and complete signed originals of Form 1001, as appropriate,
in each case indicating that such Lender is on the date of delivery thereof
entitled to receive payments of principal, interest and fees under this
Agreement free from withholding of United States Federal income
tax;

     

    
      
        
        

      

      
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    (iii)         such
Lender shall, before or promptly after the occurrence of any event (including
the passing of time but excluding any event mentioned in (ii) above) requiring a
change in or renewal of the most recent Form 4224 or Form 1001 previously
delivered by such Lender, deliver to the Borrower through the Agent two (2)
accurate and complete original signed copies of Form 4224 or Form 1001, as
appropriate, in replacement of the forms previously delivered by
such  Lender; and

     

    (iv)        such
Lender shall, promptly upon the Borrower's reasonable request to that effect,
deliver to the Borrower such other forms or similar documentation as may be
required from time to time by any applicable law, treaty, rule or regulation in
order to establish such Lender's tax status for withholding
purposes.

    (g)          The
Borrower shall not be required to pay any additional amounts in respect of
United States Federal or state income tax pursuant to Section 3.01(d) to
any Lender for the account of any Lending Office of such Lender:

     

    (i)           if
the obligation to pay such additional amounts would not have arisen but for a
failure by such Lender to comply with its obligations under Section 3.01(f) in
respect of such Lending Office;

     

    (ii)          if
such Lender shall have delivered to the Borrower a Form 4224 in respect of such
Lending Office pursuant to Section 3.01(f), and
such Lender shall not at any time be entitled to exemption from deduction or
withholding of United States Federal income tax in respect of payments by the
Borrower hereunder for the account of such Lending Office for any reason other
than a change in United States law or regulations or in the official
interpretation of such law or regulations by any governmental authority charged
with the interpretation or administration thereof (whether or not having the
force of law) after the date of delivery of such Form 4224; or

     

    (iii)         if
the Lender shall have delivered to the Borrower a Form 1001 in respect of such
Lending Office pursuant to Section 3.01(f), and
such Lender shall not at any time be entitled to reduction, partial exemption or
exemption from deduction or withholding of United States federal income tax in
respect of payments by the Borrower hereunder for the account of such Lending
Office for any reason other than a change in United States law or regulations or
any applicable tax treaty or regulations or in the official interpretation of
any such law, treaty or regulations by any governmental authority charged with
the interpretation or administration thereof (whether or not having the force of
law) after the date of delivery of such Form 1001.

     

    (h)          If,
at any time, the Borrower requests any Lender to deliver any forms or other
documentation pursuant to Section 3.01(f)(iv),
then the Borrower shall, on demand of such Lender through the Agent, reimburse
such Lender for any costs and expenses (including Attorney Costs) reasonably
incurred by such Lender in the preparation or delivery of such forms or other
documentation.

     

    
      
        
        

      

      
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    (i)           If
the Borrower is required to pay additional amounts to the Agent or any Lender
pursuant to Section
3.01(d), then such Lender shall use its reasonable efforts (consistent
with legal and regulatory restrictions) to change the jurisdiction of its
Lending Office so as to eliminate any such additional payment by the Borrower
which may thereafter accrue if such change in the judgment of such Lender is not
otherwise disadvantageous to such Lender.

     

    3.02        Illegality.

     

    (a)          If
any Lender shall determine that the introduction of any Requirement of Law or
any change therein or in the interpretation or administration thereof has made
it unlawful, or that any central bank or other Governmental Authority has
asserted that it is unlawful, for such Lender or its Lending Office to make
Loans, then, on notice thereof by such Lender to the Borrower through the Agent,
the obligation of such Lender to make Loans shall be suspended until such Lender
shall have notified the Agent and the Borrower that the circumstances giving
rise to such determination no longer exist.

    (b)          If
any Lender shall reasonably determine that it is unlawful to maintain any Loan,
the Borrower shall prepay in full all Loans of such Lender then outstanding,
together with interest accrued thereon, either on the last day of the Interest
Period thereof if such Lender may lawfully continue to maintain such Loans to
such day, or immediately if such Lender may not lawfully continue to maintain
such Loans, together with any amounts required to be paid in connection
therewith pursuant to Section
3.04.

     

    3.03        Increased Costs and
Reduction of Return.

     

    (a)          If
any Lender shall in good faith reasonably determine that, due to either
(i) the introduction of or any change in any Requirement of Law or
(ii) the compliance with any guideline or request from any central bank or
other Governmental Authority (whether or not having the force of law), there
shall be any increase in the cost to such Lender of agreeing to make or of
making, funding or maintaining any Loans hereunder, then the Borrower shall be
liable for, and shall from time to time, upon demand therefor by such Lender
(with a copy of such demand to the Agent), pay to the Agent for the account of
such Lender, such additional amounts as are sufficient to compensate such Lender
for such increased costs.

     

    (b)          If
any Lender shall have reasonably determined that (i) the introduction of
any Capital Adequacy Regulation, (ii) any change in any Capital Adequacy
Regulation, (iii) any change in the interpretation or administration of any
Capital Adequacy Regulation by any central bank or other Governmental Authority
charged with the interpretation or administration thereof, or
(iv) compliance with any Capital Adequacy Regulation by such Lender (or its
Lending Office) or any corporation controlling such Lender, effects or would
effect an increase in the amount of capital required or expected to be
maintained by such Lender or any corporation controlling such Lender (taking
into consideration such Lender's or such corporation's policies with respect to
capital adequacy and such Lender's desired return on capital), then, upon demand
of such Lender (with a copy to the Agent), the Borrower shall immediately pay to
such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender for such increase.

     

    
      
        
        

      

      
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    (c)          If
any Lender shall have determined that any of the events described in Sections 3.03(a)
or 3.03(b)
effects or would effect an increase in cost or reduction of return
resulting in additional Obligations hereunder, such Lender shall, with
reasonable promptness, notify the Borrower and the Agent of such determination,
provided that
no failure to do so shall relieve the Borrower of any Obligation
hereunder.

     

    3.04        Funding
Losses.  The Borrower agrees to reimburse each Lender for, and
to hold each Lender harmless from, any loss or expense that such Lender may
sustain or incur as a consequence of:

     

    (a)          the
failure of the Borrower to make any required payment or prepayment of principal
of any Loan (including payments to be made after any acceleration
thereof);

    (b)          the
failure of the Borrower to borrow a Loan after the Borrower has given (or is
deemed to have given) a Borrowing Notice;

     

    (c)          the
failure of the Borrower to make any prepayment after the Borrower has given a
notice in accordance with Section 2.06;
or

     

    (d)          the
prepayment of a Loan on a day which is not an Interest Payment
Date;

     

    such
amount or amounts to include an amount equal to the excess, if any, of
(a) the amount of interest that would have accrued on the amount not paid,
not borrowed, not prepaid or prepaid for the period from the date of such
failure to pay, failure to borrow, failure to prepay or prepayment, to the last
day of then current Interest Period, over (b) the amount of interest that
would accrue to the Lender on such amount at the interest rate in effect on such
date by placing such amount on deposit for a comparable period with leading
banks in the London interbank market.

     

    3.05        Inability to Determine
Rates.  If the Agent shall have in good faith reasonably
determined that adequate and reasonable means do not exist for ascertaining the
LIBOR Rate for any Interest Period, the Agent will forthwith give notice of such
determination to the Borrower and each Lender.  Thereafter, the
obligation of the Lenders to make or maintain Loans hereunder shall be suspended
until the Agent revokes such notice in writing.  Upon receipt of such
notice, the Borrower may revoke any Borrowing Notice then submitted by
it.  

     

    3.06        Certificates of
Lenders.  Any Lender claiming reimbursement or compensation
pursuant to this Article III shall
deliver to the Borrower (with a copy to the Agent) a certificate setting forth
in reasonable detail the amount payable to such Lender hereunder, and such
certificate shall be conclusive and binding on the Borrower in the absence of
manifest error.

     

    3.07        Survival.  The
agreements and obligations of the Borrower in this Article III shall
survive the payment of all other Obligations.

     

    
      
        
        

      

      
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    ARTICLE
IV

     

    CONDITIONS
PRECEDENT

     

    4.01        Conditions of First
Loan.  The obligation of each Lender to make its first Loan
hereunder is subject to the condition that the Agent shall have received on or
before the Closing Date all of the following, in the case of agreements,
documents and other instruments, in form and substance satisfactory to the
Agent, each Lender and their respective counsel in their sole discretion and in
sufficient copies for each Lender:

     

    (a)          Credit Agreement and
Notes.  This Agreement executed by the Borrower, the Agent and
each of the Lenders, and the Notes executed by the Borrower;

     

    (b)          Borrowing Base
Documents.  Delivery of the documentation for each property
described in Schedule 2.16
required under Section
2.16;

    (c)          Resolutions;
Incumbency.

     

    (i)           Copies
of the resolutions of the board of directors of the REIT approving and
authorizing in its capacity as the general partner of the Borrower the
execution, delivery and performance by the Borrower of this Agreement and the
other Loan Documents to be delivered hereunder, and authorizing the borrowing of
the Loans, certified as of the Closing Date by the Secretary or an Assistant
Secretary of the REIT; and

     

    (ii)          A
certificate of the Secretary or Assistant Secretary of the REIT certifying the
names and true signatures of the officers of the REIT authorized to execute and
deliver, as applicable, this Agreement and all other Loan Documents to be
delivered hereunder in its capacity as the general partner of the Borrower and
on its own behalf;

     

    (d)          Organizational
Documents.  Each of the following documents:

     

    (i)           the
Organizational Documents of the REIT, and the Borrower as in effect on the
Closing Date, certified by the Secretary or Assistant Secretary of the REIT as
of the Closing Date and, in the case of corporate articles or a certificate of
limited partnership, certified as of a recent date by the secretary of state of
the state of organization; and

     

    (ii)          the
Organizational Documents of each Subsidiary Guarantor as in effect on the
Closing Date, certified by a Responsible Officer and, in the case of articles of
organization for any limited liability company, certified as of a recent date by
the secretary of state of the state of organization;

     

    (iii)         a
good-standing certificate for the REIT, the Borrower and each Subsidiary
Guarantor, from the secretary of state of the state of organization of the same
and each state where such Person is qualified to do business as a foreign
corporation, partnership, trust, or other organization, each dated within ten
(10) days of the Closing Date; and

     

    
      
        
        

      

      
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    (iv)        UCC,
litigation and judgment searches with respect to the Borrower and the REIT
indicating no results that could reasonably be expected to have a Material
Adverse Effect;

     

    (e)          Certificate.  A
certificate signed by a Responsible Officer, dated as of the Closing Date,
stating that:

     

    (i)           the
representations and warranties of the Borrower and the REIT contained in Article V hereof
and in the Loan Documents are true and correct on and as of such date, as though
made on and as of such date;

     

    (ii)          no
Default or Event of Default exists or would result from the initial borrowing;
and

    (iii)         all
conditions precedent set forth in this Section 4.01 have
been satisfied (other than those based solely on the approval of the Agent or
the Borrower);

     

    (f)           Financial
Statements.  A certified copy of the Borrower’s and the REIT’s
financial statements, together with a reliance letter, in the form provided to
Agent prior to the date hereof;

     

    (g)          Legal
Opinions.  The Agent shall have received (i) an opinion of
counsel to the Borrower, and addressed to the Agent and the Lenders in form
acceptable to Agent in its sole discretion; and (ii) an opinion of counsel
to certain of the Subsidiary Guarantors with respect to local-law issues and
addressed to the Agent and the Lenders in form acceptable to Agent in its sole
discretion;

     

    (h)          Costs; Expenses;
Fees.  Payment of all costs, expenses, and accrued and unpaid
fees (including Attorney Costs) of Agent;

     

    (i)           Other
Documents.  Such other approvals, opinions, or documents as the
Agent may reasonably request; and

     

    (j)           Contribution
Agreement.  The Contribution Agreement executed by the
Subsidiary Guarantors.

     

    (k)          PATRIOT ACT
Compliance.  Such information and materials as Agent may
require in order to confirm Borrower’s compliance with the covenants contained
in Section 7.19
hereof.

     

    4.02        Conditions to Each
Loan.  The obligation of each Lender to make any Loan
(including its first Loan) is subject to the satisfaction of the following
conditions precedent:

     

    
      
        
        

      

      
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    (a)          Borrowing
Notice.  The Agent shall have received a Borrowing Notice in
compliance with the terms of Section
2.03;

     

    (b)          Other
Documents.  The Agent shall have received such other approvals,
opinions and documents as the Agent or any Lender may reasonably
request;

     

    (c)          Collateral
Value.  The Outstanding Amount shall not, as a result of the
making, continuation or conversion of such Loan, exceed the Borrowing
Base;

     

    (d)          Representations and
Warranties.  The representations and warranties made by the
Borrower and the Subsidiary Guarantors contained in the Loan Documents,
including Article
V of this Agreement, shall be true and correct on and as of the date such
Loan is made, with the same effect as if made on and as of such
date;

     

    (e)          No Existing
Default.  No Default or Event of Default shall exist or shall
result from the making, continuation or conversion of such
Loan;

    (f)           No Material Adverse
Effect.  No act, omission, change, occurrence or event which
has a Material Adverse Effect shall have occurred since the Closing Date;
and

     

    (g)          No Future Advance
Notice.  Neither the Agent nor any Lender shall have received
from the Borrower any notice that any Collateral Document will no longer secure
future Loans to be made under this Agreement.

     

    Each
Borrowing Notice submitted by the Borrower hereunder shall constitute a
representation and warranty by the Borrower hereunder, as of the date of such
notice and as of the date of the making, continuation or conversion of the
corresponding Loan, that the conditions in this Section 4.02 have
been satisfied.

     

    ARTICLE
V

     

    REPRESENTATIONS AND
WARRANTIES

     

    The
Borrower represents and warrants to the Agent and each Lender that:

     

    5.01        Existence and
Power.  The Borrower is a Delaware limited partnership, the
REIT is a Maryland corporation, and each of the Borrower, the REIT and each
Subsidiary Guarantor:

     

    (a)          Organization.  Is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization;

     

    (b)          Power and
Authority.  Has the power and authority and all governmental
licenses, authorizations, consents and approvals to own its Properties, to carry
on its business and to execute, deliver, and perform its obligations under, the
Loan Documents to which it is a party;

     

    
      
        
        

      

      
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    (c)          Due
Qualification.  Is duly qualified as a foreign corporation,
partnership, trust or other organization, and licensed and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of
its Properties or the conduct of its business requires such qualification;
and

     

    (d)          Compliance with Legal
Requirements.  Is in compliance with all Requirements of
Law.

     

    5.02        Authorization; No
Conflict.  The execution, delivery and performance by the
Borrower and each Subsidiary Guarantor of this Agreement, and any other Loan
Document to which such Person is party, have been duly authorized by all
necessary partnership, corporate or other organizational action, and do not and
will not:

     

    (a)          Organizational
Documents.  Contravene the terms of any of such Person's
Organizational Documents;

     

    (b)          Contractual
Obligations.  Conflict with, or result in any breach or
contravention of, or the creation of any Lien under, any document evidencing any
Contractual Obligation to which such Person is a party or any order, injunction,
writ or decree of any Governmental Authority to which such Person or its
Properties are subject; or

    (c)          Requirements of
Law.  Violate any Requirement of Law.

     

    5.03        Governmental
Authorization.  No approval, consent, exemption, authorization,
or other action by, or notice to, or filing with, any Governmental Authority
(except for recordings in connection with the Liens granted to the Agent under
the Collateral Documents) is necessary or required in connection with the
execution, delivery or performance by, or enforcement against, the Borrower or
any Subsidiary Guarantor of this Agreement or any other Loan
Document.

     

    5.04        Binding
Effect.  This Agreement and each other Loan Document to which
the Borrower or any Subsidiary Guarantor is a party constitute the legal, valid
and binding obligations of such Person, enforceable against such Person in
accordance with their respective terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, or similar laws affecting the enforcement
of creditors' rights generally or by equitable principles relating to
enforceability.

     

    5.05        Litigation.  Except
as specifically disclosed in Schedule 5.05,
there are no actions, suits, proceedings, claims or disputes pending, or to the
Knowledge of the Borrower, threatened in writing, at law, in equity, in
arbitration or before any Governmental Authority, against the Borrower, the REIT
or any Subsidiary Guarantor or any of their respective Properties, which
(a) purport to affect or pertain to this Agreement, or any other Loan
Document, or any of the transactions contemplated hereby, or (b) if
determined adversely to any such Person, would reasonably be expected to have a
Material Adverse Effect.  No injunction, writ, temporary restraining
order or any other order of any nature has been issued by any court or other
Governmental Authority purporting to enjoin or restrain the execution, delivery
and performance of this Agreement or any other Loan Document, or directing that
the transactions provided for herein not be consummated as herein
provided.

     

    
      
        
        

      

      
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    5.06        Title to
Properties.  The Borrower has good record and marketable title
in fee simple to all real property necessary or used in the ordinary conduct of
its business, except for such encumbrances and defects in title as could not,
individually or in the aggregate, have a Material Adverse
Effect.  Each Subsidiary Guarantor has good record and marketable fee
and/or leasehold title to its respective Borrowing Base Property, free and clear
of all Liens other than the Permitted Exceptions.  The Borrower has
good title to 100% of all equity interests in the Subsidiary Guarantors free of
all Liens.      

     

    5.07        [Reserved].  

     

    5.08        Financial
Condition.  The Borrower’s and REIT’s financial statements
provided to Agent:  (a) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; (b) are complete, accurate and fairly present the
financial condition of the Borrower, the REIT, the Subsidiary Guarantors and the
Borrowing Base Properties as of the dates thereof and results of operations for
the periods covered thereby; and (c) show all material indebtedness and other
liabilities, direct or contingent, of the Borrower, the REIT, the Subsidiary
Guarantors and the Borrowing Base Properties as of the date
thereof.  

    5.09        Taxes.  The
Borrower, the REIT and the Subsidiary Guarantors have filed all Federal and
other material tax returns and reports required to be filed.  All tax
returns filed by the Borrower, the REIT and the Subsidiary Guarantors are
complete and correct.  The Borrower, the REIT and the Subsidiary
Guarantors have paid all Federal and other material taxes, assessments, fees and
other governmental charges for which they are liable (whether or not reflected
on any tax returns) and have fully satisfied any taxes, assessments, fees, and
other governmental charges levied or imposed upon them or their income or assets
or otherwise due and payable, except those which are being contested in good
faith by appropriate proceedings and for which adequate reserves have been
provided in accordance with GAAP and no Notice of Lien has been filed or
recorded.  There is no proposed tax assessment against the Borrower,
the REIT or any Subsidiary Guarantor which would, if the assessment were made,
have a Material Adverse Effect.  In addition, the Borrower, the REIT
and the Subsidiary Guarantors have no primary, secondary or other liability for
taxes of any kind arising with respect to any individual, trust, corporation,
partnership or other entity as to which the Borrower, the REIT or any Subsidiary
Guarantor is directly or indirectly liable for taxes of any kind incurred by
such individual or entity either as a transferee, or pursuant to Treasury
Regulations section 1.1502-6, or pursuant to any other Requirement of
Law.  Neither the Borrower nor any Subsidiary Guarantor is (nor has it
ever been) a party to any tax sharing agreement.  

     

    5.10        ERISA
Compliance.  

     

    (a)          Schedule 5.10 lists
all Plans and separately identifies Plans intended to be Qualified Plans and
Multiemployer Plans.  All written descriptions thereof provided to the
Agent and the Lenders are true and complete in all material
respects.

     

    
      
        
        

      

      
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    (b)          Each
Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or state law, including all requirements under
the Code or ERISA for filing reports (which are true and correct in all material
respects as of the date filed), and benefits have been paid in accordance with
the provisions of the Plan.

     

    (c)          Each
Qualified Plan and Multiemployer Plan has been determined by the IRS to qualify
under Section 401 of the Code, and the trusts created thereunder have been
determined to be exempt from tax under the provisions of Section 501 of the
Code, and to the best knowledge of the Borrower nothing has occurred which would
cause the loss of such qualification or tax-exempt status.

     

    (d)          Except
as specifically disclosed in Schedule 5.10, there
is no outstanding liability under Title IV of ERISA with respect to any Plan
maintained or sponsored by the Borrower or any ERISA Affiliate, nor with respect
to any Plan to which the Borrower or any ERISA Affiliate contributes or is
obligated to contribute.

     

    (e)          Except
as specifically disclosed in Schedule 5.10, no
Plan subject to Title IV of ERISA has any Unfunded Pension
Liability.

    (f)           Except
as specifically disclosed in Schedule 5.10, no
member of the Controlled Group has ever represented, promised or contracted
(whether in oral or written form) to any current or former employee (either
individually or to employees as a group) that such current or former employee(s)
would be provided, at any cost to any member of the Controlled Group, with life
insurance or employee welfare plan benefits (within the meaning of section 3(1)
of ERISA) following retirement or termination of employment.  To the
extent that any member of the Controlled Group has made any such representation,
promise or contract, such member has expressly reserved the right to amend or
terminate such life insurance or employee welfare plan benefits with respect to
claims not yet incurred.

     

    (g)          Members
of the Controlled Group have complied in all material respects with the notice
and continuation coverage requirements of Section 4980B of the
Code.

     

    (h)          Except
as specifically disclosed in Schedule 5.10, no
ERISA Event has occurred or is reasonably expected to occur with respect to any
Plan.

     

    (i)           There
are no pending or, to the Knowledge of the Borrower, threatened claims, actions
or lawsuits, other than routine claims for benefits in the usual and ordinary
course, asserted or instituted against (i) any Plan maintained or sponsored by
the Borrower or its assets, (ii) any member of the Controlled Group with respect
to any Qualified Plan, or (iii) any fiduciary with respect to any Plan for which
the Borrower may be directly or indirectly liable, through indemnification
obligations or otherwise.

     

    (j)           Except
as specifically disclosed in Schedule 5.10,
neither the Borrower nor any ERISA Affiliate has incurred nor reasonably expects
to incur (i) any liability (and no event has occurred which, with the giving of
notice under Section 4219 of ERISA, would result in such liability) under
Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan or (ii) any
liability under Title IV of ERISA (other than premiums due and not delinquent
under Section 4007 of ERISA) with respect to a Plan.

     

    
      
        
        

      

      
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    (k)          Except
as specifically disclosed in Schedule 5.10,
neither the Borrower nor any ERISA Affiliate has transferred any Unfunded
Pension Liability to a Person other than the Borrower or an ERISA Affiliate or
otherwise engaged in a transaction that could be subject to Section 4069 or
4212(c) of ERISA.

     

    (l)           No
member of the Controlled Group has engaged, directly or indirectly, in a
non-exempt prohibited transaction (as defined in Section 4975 of the Code or
Section 406 of ERISA) in connection with any Plan which could reasonably be
expected to have a Material Adverse Effect.

     

    5.11        Environmental
Matters.

     

    (a)          Environmental
Laws.  To the Knowledge of Borrower (without inquiry by
Borrower beyond obtaining the environmental reports delivered to Agent), except
as specifically disclosed in any environmental report delivered by Borrower to
Agent with respect to any Borrowing Base Properties comply in all respects with
all Environmental Laws.

    (b)          Environmental
Permits.  Except as specifically described in any environmental
report delivered by Borrower to Agent with respect to any Borrowing Base
Property, the Subsidiary Guarantors have obtained and maintained all licenses,
permits, authorizations and registrations required under any Environmental Law
(“Environmental
Permits”) all such Environmental Permits are in good standing, and each
such Person is in compliance with all terms and conditions thereof.

     

    (c)          Orders.  Except
as specifically disclosed in any environmental report delivered by Borrower to
Agent with respect to any Borrowing Base Property, there are no outstanding
written orders from or agreements with any Governmental Authority nor any
judicial or docketed administrative proceedings respecting any Environmental
Law, Environmental Claim or Hazardous Material to which the Borrower, the
Subsidiary Guarantors or any Borrowing Base Property is subject.

     

    (d)          Hazardous
Materials.  Except as specifically disclosed in any
environmental report delivered by Borrower to Agent with respect to any
Borrowing Base Property, Borrower has no actual knowledge and has received no
written notice that any Hazardous Materials or other conditions or circumstances
exist with respect to any Borrowing Base Property, that would reasonably be
expected to give rise to Environmental Claims for any such condition,
circumstance or Borrowing Base Property.  In addition, to the
Knowledge of Borrower (without inquiry by Borrower beyond obtaining the
environmental reports delivered to Agent) and except as specifically disclosed
in any environmental report delivered by Borrower to Agent with respect to any
Borrowing Base Property (i) there are not located on the Borrowing Base
Properties underground storage tanks (x) that are not properly registered
or permitted under applicable Environmental Laws, or (y) that are leaking
or emitting Hazardous Materials whether on-or off-site, and (ii) to the
extent required by Environmental Laws, the Borrower and the Subsidiary
Guarantors have notified all of their employees of the existence, if any, of any
health hazard arising from the conditions of their employment and have met all
notification requirements under Title III of CERCLA and all other Environmental
Laws.

     

    
      
        
        

      

      
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    5.12        Collateral
Documents.  When executed, delivered and recorded pursuant
hereto, the Collateral Documents shall be effective to create in favor of the
Agent, for the benefit of the Lenders, legal, valid and enforceable
first-priority Liens in the Collateral and the proceeds thereof, subject only to
the Permitted Exceptions.  As required by Section 2.16(a), all
action, including (a) the recording of Mortgages and Collateral Assignments
and (b) the filing of UCC financing statements and other security
perfection documents in all appropriate jurisdictions, shall have been taken
that is necessary or appropriate to perfect the Agent's Lien, for the benefit of
the Lenders, in the Collateral.  All representations and warranties of
the Borrower and Subsidiary Guarantors contained in any Collateral Documents are
true and correct.

     

    5.13        Regulated
Entities.  None of the Borrower or any Subsidiary Guarantor is
(a) an “Investment Borrower” within the meaning of the Investment Borrower
Act of 1940; or (b) subject to regulation under the Public Utility Holding
Borrower Act of 1935, the Federal Power Act, the Interstate Commerce Act, any
state public utilities code, or any other Federal or state statute or regulation
limiting its ability to incur Indebtedness.

    5.14           Use of Proceeds; Margin
Regulations.  The proceeds of the Loans are intended to be and
shall be used solely for the purposes set forth in and permitted by Sections 2.01 and are
intended to be and shall be used in compliance with Section
7.12.

     

    5.15           REIT and Tax Status; Stock
Exchange Listing.  The REIT currently has REIT Status and has
maintained REIT Status on a continuous basis since its formation.  The
Borrower is not an association taxable as a corporation under the
Code.    

     

    5.16           Insurance.  The
Borrower and its assets are insured with financially sound and reputable
insurance companies, in such amounts, with such deductibles and covering such
risks as are customarily carried by companies engaged in similar businesses and
owning similar Properties in localities where the Borrower
operates.

     

    5.17           No
Default.  No Default or Event of Default exists or would result
from the incurring of any Obligations by the Borrower.  Neither the
Borrower nor any of the Subsidiary Guarantors is in default under or with
respect to any Contractual Obligation in any respect which, individually or
together with all such defaults, would reasonably be expected to have a Material
Adverse Effect.

     

    5.18           [Reserved].  

     

    5.19           Borrower Not a “Foreign
Person.”  The Borrower is not a “foreign person” within the
meaning of Section 1445(f)(3) of the Code.  

     

    5.20           Defects.  To
the Knowledge of Borrower, there exist no material defects that would make any
Borrowing Base Property unsuitable for the present or contemplated use of such
Borrowing Base Property and, except as disclosed to Agent in any Borrowing Base
Deliverables, there are no abnormal hazards, including but not limited to earth
movement or slippage, affecting any Borrowing Base
Property.  

     

    
      
        
        

      

      
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    5.21           Property
Documents.  The Borrower has delivered to Agent copies of all
easement agreements, reciprocal easement agreements, management agreements,
service contracts, and other agreements, instruments and documents and all
amendments thereof (whether or not recorded) which affect in any material
respect the Subsidiary Guarantors’ interest in any Borrowing Base Property.

     

    5.22           Condemnation.  No
condemnation proceeding involving any Borrowing Base Property or any portion
thereof or parking facility used in connection therewith has been commenced or
is contemplated by any Governmental Authority (as evidenced by written notice of
such to Borrower or any of its Affiliates), nor has any portion of any Borrowing
Base Property or any parking facility used in connection therewith been
materially damaged due to fire or other casualty and not yet been
restored.  

     

    5.23           Violation of Laws;
Permits.  The operation of each Borrowing Base Property by the
Subsidiary Guarantors does not involve a material violation of (a) any
Requirements of Law or (b) any building permits, restrictions of record,
any agreement affecting any such property or part thereof, and any judgment,
decree or order applicable to such property.  The Subsidiary
Guarantors have obtained all governmental permits (including, without
limitation, building permits and certificates of occupancy) necessary under
applicable Requirements of Law to lawfully construct, own, lease, occupy, use
and operate each Borrowing Base Property and the improvements thereon,
including, but not limited to, all applicable environmental and zoning laws,
ordinances and regulations.

     

    
      5.24           Utilities.  Each
Borrowing Base Property has adequate water, gas, telephone, electrical supply,
storm and sanitary sewerage facilities and means of access to and from public
streets or highways.

       

      5.25           Leases.  Except
as listed on Schedule
5.25, there are no Leases affecting the Borrowing Base
Properties.  No rent has been collected more than one (1) month in
advance under any such Lease.  No such Lease or any interest therein
is subject to any present assignment or pledge (other than, as provided in Section 2.16(a), to
Agent for the ratable benefit of the Lenders).  No lessee under any
such Lease has any defense, setoff or counterclaim against the applicable
Subsidiary Guarantor.  All rent due to date under each Lease has been
collected in the ordinary course of business and, except as may be provided in
any such Lease, no concession has been granted to any lessee in the form of a
waiver, release, reduction, discount or other alteration of rent due or to
become due.  The interest of the lessee under each such Lease is as
lessee only, with no options to purchase or rights of first refusal, other than
that which may be expressly set forth in the Lease.  

       

      5.26           Full
Disclosure.  None of the representations or warranties made by
the Borrower or any Subsidiary Guarantor in the Loan Documents as of the date
such representations and warranties are made or deemed made, and none of the
statements contained in each exhibit, report, statement or certificate furnished
by or on behalf of any such Person in connection with the Loan Documents,
contain any untrue statement of a material fact or omit any material fact
required to be stated therein or necessary to make the statements made therein,
in light of the circumstances under which they are made, not
misleading.  There is no fact, to the Knowledge of the Borrower, which
materially and adversely affects the business, operations, properties, assets or
condition (financial or otherwise) of the Borrower or any Subsidiary Guarantor,
which has not been disclosed herein or in other documents, certificates and
statements furnished to the Agent and each Lender hereunder or pursuant
hereto.  The copies of all documents delivered to the Agent and/or
Lenders from time to time in connection with this Agreement are and shall be
true and complete copies of the originals thereof and have not been or shall not
be amended except as disclosed to the Agent and/or Lenders, as
applicable.  

       

      
        
          
          

        

        
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      ARTICLE
VI

       

      AFFIRMATIVE
COVENANTS

       

      The
Borrower covenants and agrees that, so long as any Lender shall have any
Commitment hereunder, or any Loan or other obligation shall remain unpaid or
unsatisfied, unless the Agent waives compliance in writing:

       

      6.01           Financial
Information.  The Borrower shall deliver to the Agent in form
and detail satisfactory to the Agent:

    

     

    
       
 
(a)           Annual Financial
Statements.  As soon as available, but not later than ninety
(90) days after the end of each fiscal year, a copy of the audited consolidated
balance sheet of Borrower, the REIT and their Subsidiaries as of the end of such
year and the related consolidated statements of operations, stockholders' equity
(where applicable) and cash flows for such fiscal year, setting forth in each
case in comparative form the figures for the previous year, and accompanied by
the opinion of a nationally-recognized independent public accounting firm
stating that such consolidated financial statements present fairly the financial
position for the periods indicated, in conformity with GAAP applied on a basis
consistent with prior years;

       

       
 
(b)           Quarterly Financial
Statements.  As soon as available, but not later than sixty
(60) days after the end of each of the first three (3) fiscal quarters of each
year, a copy of the unaudited consolidated balance sheet of each of the
Borrower, the REIT and each of their Subsidiaries as of the end of such quarter
and the related consolidated statements of operations, stockholders' equity
(where applicable) and cash flows for the period commencing on the first day and
ending on the last day of such quarter, and accompanied by a certificate signed
by a Responsible Officer stating that such financial statements are complete and
correct and present fairly the financial position for the periods indicated, in
conformity with GAAP for interim financial statements applied on a basis
consistent with prior quarters; and

       

         
(c)           Annual Rent Roll; Operating
Statements.  As soon as available, but not later than ninety
(90) days after the end of each fiscal year, a rent roll with respect to the
Borrowing Base Properties and trailing 12 month operating statements for the
Borrowing Base Properties accompanied by a certificate signed by a Responsible
Officer certifying that the information contained therein is complete and
correct to the Knowledge of the Borrower.

       

      
        
          
          

        

        
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      6.02           Certificates; Other
Information.  The Borrower shall furnish to the Agent, with
sufficient copies for each Lender:

       

        
(a)           Accounting
Certificates.  Concurrently with the delivery of the financial
statements referred to in Section 6.01(a), a
certificate of the independent certified public accountants reporting on such
financial statements stating that, in making the examination necessary therefor,
no knowledge was obtained of any Default or Event of Default, except as
specified in such certificate;

       

        
(b)           Officers'
Certificates.  Concurrently with the delivery of the financial
statements referred to in Sections 6.01(a) and
6.01(b) above,
a compliance certificate, substantially in the form of Exhibit H, signed by a Responsible
Officer (i) stating that, to the best of such officers' knowledge, each of
the Borrower, the Subsidiary Guarantors and the REIT, during such period, has
observed or performed in all material respects all of its covenants and other
agreements, and satisfied in all material respects every condition contained in
this Agreement and the other Loan Documents to be observed, performed or
satisfied by it, and that such officers have no knowledge of any Default or
Event of Default except as specified in such certificate; (ii) showing in
detail the calculations supporting such statement for such period in respect of
the covenants in Section 7.16; and
(iii) showing in detail the calculation of the Borrowing Base for such
period on an asset-by-asset basis.  Notwithstanding anything to the
contrary contained herein and without limiting the Lenders' other rights and
remedies, if such certificate is not provided on the due date therefor, the
Borrower shall be prohibited from any further borrowings under this Agreement
until such certificate is provided.

       

      
          
(c)           Periodic Reports and
Filings.  Promptly upon Agent’s request,  copies of
any report, proxy statement, financial statement, periodical or special report
which the REIT files with the Securities and Exchange Commission or any
successor or similar Governmental Authority.

         

          
(d)           Accountants'
Reports.  Promptly after the same are received, copies of all
reports which the independent certified public accountants of the Borrower or
the REIT deliver to the Borrower or the REIT.

         

          
(e)           Other
Information.  Promptly, such additional financial and other
information as the Agent may from time to time reasonably request.

         

        6.03           Notices.  The
Borrower shall promptly (and in no event later than ten (10) days after the
Borrower has reason to know of the same) notify the Agent and each Lender
of:

         

          
(a)           Default; Event of
Default.  The occurrence of any Default or Event of
Default;

         

          
(b)           Litigation.  The
commencement of, or any material development in, any litigation, arbitration or
proceeding affecting the Borrower, the REIT, or any Subsidiary (including any
Subsidiary Guarantor) (i) in which the amount of damages claimed is
$100,000 or more, (ii) in which injunctive or similar relief is sought and
which, if adversely determined, would reasonably be expected to have a Material
Adverse Effect, (iii) in which the relief sought is an injunction or other
stay of the performance of any Loan Document or (iv) required to be
reported to the SEC pursuant to the Exchange Act;

         

        
          
            
            

          

          
            62

            
              

            

          

          
            
            

          

        

         

          
(c)           Environmental
Matters.  (i) Any and all enforcement, cleanup, removal or
other governmental or regulatory actions instituted, completed or threatened
against the Borrower, the REIT, or any Subsidiary (including any Subsidiary
Guarantor) or any of their Properties pursuant to any Environmental Laws,
(ii) all other Environmental Claims, and (iii) any environmental or
similar condition on any real property adjoining or in the vicinity of the
Properties of the Borrower, the REIT, or any Subsidiary that could reasonably be
anticipated to cause such Properties (or any portion thereof) to be subject to
any restrictions on ownership, occupancy, transferability or use under any
Environmental Laws;

         

          
(d)           ERISA.  the
occurrence of any of the following ERISA events affecting the Borrower or any
member of its Controlled Group, together with a copy of any notice with respect
to such event that may be required to be filed with any Governmental Authority
and any notice delivered by a Governmental Authority to the Borrower or any
member of its Controlled Group with respect to such event:

         

          
(i)           an ERISA
Event;

      

    

     

    
        
(ii)           the
adoption of any new Plan that is subject to Title IV of ERISA or Section 412 of
the Code by any member of the Controlled Group;

       

        
(iii)           the
adoption of any amendment to a Plan that is subject to Title IV of ERISA or
Section 412 of the Code, if such amendment results in a material increase in
benefits or unfunded liabilities; or

       

        
(iv)           the
commencement of contributions by any member of the Controlled Group to any Plan
that is subject to Title IV of ERISA or Section 412 of the Code;

       

        
(e)           Material Adverse
Effects.  The occurrence of any act, omission, change or event
which has a Material Adverse Effect subsequent to the date of the most recent
audited financial statements of the Borrower and the REIT delivered to the Agent
pursuant to Section
6.01(a);

       

        
(f)           [Reserved].

       

        
(g)           Failure to Qualify as a
REIT.  The failure of the REIT to maintain REIT
Status;

       

        
(h)           Accounting
Changes.  Any change in the Borrower's or the REIT's accounting
policies or financial reporting practices;

       

      
        
          
          

        

        
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(i)           Legal
Compliance.  Any material notice received from any Governmental
Authority asserting that any Borrowing Base Property is not in compliance with
any Requirements of Law; and

       

        
(j)           Other
Defaults.  Any notice received by the Borrower, the REIT, or
any Subsidiary (including any Subsidiary Guarantor) of any default under any
Indebtedness or Guaranty Obligation described in Section 8.01(e) which
is more than ninety (90) days past due.

       

      Each
notice pursuant to this section shall be accompanied by a written statement,
signed by a Responsible Officer, setting forth details of the occurrence
referred to therein and the provisions of this Agreement affected, and stating
what action the Borrower or the REIT proposes to take with respect
thereto.  Each notice under Section 6.03(a) shall
describe with particularity the clause or provision of this Agreement or other
Loan Document that has been breached or violated.

       

      6.04           Preservation of Existence,
Etc.  The Borrower shall, and shall cause the REIT, and each
Subsidiary Guarantor to, (a) preserve and maintain in full force and effect its
partnership, corporate or other organizational existence and good standing under
the laws of its state or jurisdiction of organization, and (b) preserve and
maintain in full force and effect all rights, privileges, qualifications,
permits, licenses and franchises necessary or desirable in the normal conduct of
its business.

       

    

    
      6.05           Maintenance of
Property.  The Borrower shall maintain, and shall cause the
REIT and each Subsidiary Guarantor to maintain, and preserve all of their
Properties, including Properties constituting Collateral, in good working order
and condition, ordinary wear and tear excepted.

       

      6.06           Insurance.  In
addition to insurance requirements set forth in the Collateral Documents, the
Borrower shall maintain, and shall cause the REIT, and each Subsidiary
(including any Subsidiary Guarantor) to maintain, with financially sound and
reputable independent insurers, insurance with respect to their Properties and
business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or a similar business, of such types and in such
amounts as are customarily carried under similar circumstances by such other
Persons; including workers' compensation insurance, public liability and
property and casualty insurance (which amount shall not be reduced in the
absence of thirty (30) days' prior notice to the Agent).  Upon the
request of Agent, the Borrower shall furnish the Agent, with sufficient copies
for each Lender, at reasonable intervals (but not more than the twice per
calendar year) a certificate signed a Responsible Officer (and, if requested by
such Agent, any insurance broker of the Borrower or the REIT) setting forth the
nature and extent of all insurance maintained by the Borrower, the REIT, and
each Subsidiary (including any Subsidiary Guarantor) in accordance with this
Section 6.06 or
any Collateral Documents (and which, in the case of a certificate of a broker,
was placed through such broker).

       

      6.07           Payment of
Obligations.  The Borrower shall, and shall cause the REIT and
each Subsidiary (including any Subsidiary Guarantor) to, pay and discharge as
the same shall become due and payable and otherwise comply with, all their
respective obligations and liabilities, including (a) all tax liabilities,
assessments and governmental charges or levies upon it or its Properties, unless
the same are being contested in good faith by appropriate proceedings and
adequate reserves in accordance with GAAP are being maintained by the Borrower
or such Person, (b) all lawful claims which, if unpaid, would by law become
a Lien upon its Properties, including Properties constituting Collateral,
(c) all Indebtedness, as and when due and payable, but subject to any
subordination provisions contained in any instrument or agreement evidencing
such Indebtedness, and (d) all Contractual Obligations.

       

      
        
          
          

        

        
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      6.08           Compliance with
Laws.  The Borrower shall comply, and shall cause the REIT and
each Subsidiary (including any Subsidiary Guarantor) to comply, with all
Requirements of Law of any Governmental Authority having jurisdiction over it or
its business, including, without limitation, all securities laws and
regulations.

       

      6.09           Environmental
Laws.  The Borrower shall, and shall cause each Subsidiary
Guarantor to, conduct its operations and keep and maintain all Borrowing Base
Properties in compliance with all Environmental Laws.  Upon the
written request of the Agent or any Lender, the Borrower shall submit, and cause
any Subsidiary Guarantor to submit, to the Agent and such Lender, at the
Borrower's sole cost and expense (except as set forth below), at reasonable
intervals, a report providing an update of the status of any environmental,
health or safety compliance, hazard or liability issue identified in any notice
or report required pursuant to Section 6.03(c);
provided, however, unless either (a) an Event of Default has occurred, or (b)
Agent has a reasonable basis to require such updated report, then Agent and the
Lenders shall be responsible for the cost of such report.

       

    

    
      6.10           Use of
Proceeds.  The Borrower shall use the proceeds of the Loans
solely in accordance with Sections 2.01
above.

       

      6.11           Maintenance of REIT Status;
Stock Exchange Listing.  The Borrower shall cause the REIT at
all times to maintain to its REIT Status.  

       

      6.12           Inspection of Property and
Books and Records.  The Borrower shall maintain, and shall
cause the REIT and each Subsidiary (including any Subsidiary Guarantor) to
maintain, proper books of record and account, in which full, true and correct
entries in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the Properties and business of the
Borrower, the REIT and each Subsidiary (including any Subsidiary
Guarantor).  The Borrower shall permit, and shall cause the REIT and
each Subsidiary (including any Subsidiary Guarantor) to permit, representatives
of the Agent or any Lender to visit and inspect any of their respective
Properties, to conduct audits of the Collateral, to examine their respective
corporate, financial and operating records, and make copies thereof or abstracts
therefrom, and to discuss their respective affairs, finances and accounts with
their respective directors, officers, and independent public accountants, all at
the expense of the Borrower and at any time during normal business hours and as
often as may be reasonably desired, upon no less than forty-eight (48) hours
advance notice to the Borrower; provided, however, when an
Event of Default exists, the Agent or any Lender may visit and inspect at the
expense of the Borrower such Properties at any time during business hours and
without advance notice.  Lender shall use its reasonable efforts to
minimize interference or disturbance to the possession, occupancy and operations
of any lessee or other occupant of any Property when exercising its rights under
this Section 6.12.

       

      
        
          
          

        

        
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      6.13           Further
Assurances.  

       

         
(a)           Full
Disclosure.  The Borrower will ensure that all other written
information, exhibits and reports furnished to any Agent or Lender by the
Borrower, the REIT or any Subsidiary (including any Subsidiary Guarantor) do not
and will not contain any untrue statement of a material fact and do not and will
not omit to state any material fact or any fact necessary to make the statements
contained therein not misleading in light of the circumstances in which made,
and will promptly disclose to the Agent and the Lenders and correct any defect
or error that may be discovered therein or in any Loan Document or in the
execution, acknowledgement or recordation thereof.

       

         
(b)           Further
Acts.  Promptly upon request by the Agent, the Borrower shall
(and shall cause the REIT, and each Subsidiary (including any Subsidiary
Guarantor) to do, execute, acknowledge, deliver, record, re-record, file,
re-file, register and re-register, any and all such further acts, deeds,
conveyances, security agreements, mortgages, deeds of trust, assignments,
estoppel certificates, financing statements and continuations thereof,
termination statements, notices of assignment, transfers, certificates,
assurances and other instruments that the Agent or such Lenders, as the case may
be, may reasonably require from time to time in order (i) to carry out more
effectively the purposes of this Agreement or any other Loan Document,
(ii) to subject to the Liens created by any of the Collateral Documents any
of the Collateral, (iii) to perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and the Liens
intended to be created thereby, and (iv) to better assure, convey, grant,
assign, transfer, preserve, protect and confirm to the Agent and Lenders the
rights granted or now or hereafter intended to be granted under any Loan
Document, or any other document executed in connection herewith or
therewith.

       

    

    
      6.14           Communication with
Accountants.  The Borrower authorizes the Agent to communicate
directly with the Borrower's independent accountants and authorizes such
accountants to disclose to the Agent any and all financial statements and other
information of any kind with respect to the business, financial condition and
other affairs of the Borrower, as long as, if no Event of Default exists, the
Agent promptly notifies the Borrower of such discussions.

       

      6.15           Solvency.  The
Borrower shall at all times be, and shall cause the REIT and each Subsidiary
(including any Subsidiary Guarantor) to be, Solvent.  

       

      6.16           Covenants Relating to
Borrowing Base Properties.  The Borrower hereby agrees with
respect to the Borrowing Base Properties as follows:  

       

         
(a)           Maintenance.  The
Borrower shall maintain, or cause the Subsidiary Guarantor to maintain, each
Borrowing Base Property in good order and condition in accordance with the past
practices of the Borrower and in at least the same condition as on the Closing
Date, normal wear and tear excepted.

       

      
        
          
          

        

        
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(b)           Leases.  The
Borrower shall not, and shall not permit the Subsidiary Guarantor
to,  enter into any Lease of any Borrowing Base Property other than
the Net Lease with respect to such Property.  The Borrower shall not,
and shall not permit the Subsidiary Guarantor to, amend, modify, supplement or
terminate any Lease of any Borrowing Base Property (including the Net Lease),
without the prior written consent of Agent, other than (a) modifications that do
not affect the economic terms or length of the term of such Lease, and (b) do
not materially affect the obligations of the tenants thereunder (other than
modifications that would increase the obligations of any such tenant and are
more favorable to the applicable Subsidiary Guarantor).

       

         
(c)           Material
Agreements.  The Borrower shall obtain the prior written
approval of the Agent prior to entering into, or causing any Subsidiary
Guarantor to enter into, any reciprocal easement or similar agreement, ground
lease or any other material agreement affecting any Borrowing Base
Property.

       

         
(d)           Management
Contracts.  The Borrower shall obtain the prior written
approval of the Agent prior to entering into, or causing any Subsidiary
Guarantor to enter into, any property management agreement or replacing or
terminating the property manager for any Borrowing Base Property.

       

    

    
         
(e)           Construction.  The
Borrower shall obtain the prior written approval of the Agent prior to entering
into, or causing any Subsidiary Guarantor to enter into, any construction or
renovation the cost of which is expected to be in excess of $500,000, and shall
discharge all mechanic's liens resulting from any construction or renovation
within thirty (30) days of becoming aware of same.

       

         
(f)           Liens.  The
Borrower shall, and shall cause the Subsidiary Guarantors to, keep each
Borrowing Base Property at all times free and clear of all Liens (unless such
Liens are bonded and thereby released of record in a manner satisfactory to the
Agent), except for Permitted Exceptions or other matters approved by the
Agent.

       

      6.17           Interest Rate Protection
Agreements.   If, at any time, the LIBOR Rate equals or
exceeds three percent (3.0%) for any Interest Period, then Borrower shall,
within ten (10) days of Agent’s request, (a) enter into an interest rate
protection agreement with a financial institution having debt ratings reasonably
satisfactory to Agent, providing for the hedging of the interest payable
hereunder at such levels in such notional amounts as Agent shall reasonably
require, and (b) assign all of its interest in such interest rate protection
agreement to Agent pursuant to documentation satisfactory to Agent in form and
substance.  Borrower shall pay all costs and expenses of Agent in
connection with evidencing the foregoing assignment, including Attorney
Costs.

       

      6.18           Cash
Management.  Borrower shall cause, and shall cause each
Subsidiary Guarantor to cause, all Rents to be transmitted directly by all
tenants at Borrower Base Properties into an account (the “Clearing Account”)
maintained by Borrower at Capital One as more fully described in the Clearing
Account Agreement.  Without in any way limiting the foregoing, all
Rents received by Borrower or any Subsidiary Guarantor shall be deposited into
the Clearing Account within one (1) Business Day of receipt.  Funds
deposited into the Clearing Account shall be swept by Capital One on a daily
basis into Borrower’s operating account at Capital One, unless an Event of
Default is continuing.  Borrower shall pay for all expenses of opening
and maintaining the Clearing Account.  As security for payment of the
Obligations and the performance by Borrower of all other terms, conditions and
provisions of the Loan Documents, Borrower hereby pledges and assigns to Agent
(on behalf of the Lenders), and grants to Agent a security interest in, all
Borrower’s right, title and interest in and to all Rents, the Clearing Account
and in and to all payments to or monies held in the Clearing
Account.  This Agreement is, among other things, intended by the
parties to be a security agreement for purposes of the UCC.  Upon the
occurrence and during the continuance of an Event of Default, Agent may apply
any sums in the Clearing Account to the Obligations in any order and in any
manner as Agent shall elect in Agent’s discretion without seeking the
appointment of a receiver and without adversely affecting the rights of Agent to
foreclose the Liens on the Collateral or exercise its other rights under the
Loan Documents.    

       

      
        
          
          

        

        
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      6.19           [Reserved].  

       

      6.20           Subsidiary
Guarantors.  Borrower shall cause each Subsidiary that is not
already a Subsidiary Guarantor and that owns any Nominated Property which the
Borrower proposes to treat as a Borrowing Base Property to deliver to the Agent
prior to such Nominated Property being included in the calculation of the
Borrowing Base and treated as a Borrowing Base Property for purposes of the
financial covenants contained herein (a) a Joinder Agreement, (b) if required by
the Agent, favorable opinions of counsel to such Subsidiary (which shall cover,
among other things, the legality, validity, binding effect and enforceability of
the Subsidiary Guaranty), in form, content and scope consistent with the
opinions of counsel delivered on the Closing Date and (c) all documentation and
other information that the Agent or any Lender requests in order to comply with
its ongoing obligations under applicable "know your customer" and anti-money
laundering rules and regulations.

       

    

    
      6.21           Right of First
Refusal.   If, at any time, Borrower or any Subsidiary of
Borrower desires to acquire a Property using the proceeds of the Loans, which
acquisition will require Borrower or such Subsidiary Guarantor to obtain
third-party, permanent financing, then Borrower shall notify Capital One of
same, and shall provide Capital One with information and materials with respect
to such Property sufficient to allow Capital One to make a determination whether
to provide permanent financing with respect to such Property (the “Property Information
Packet”).  Within five (5) Business Days of receipt of the
Property Information Packet (and such additional materials as Capital One may
reasonably request with respect to such Property), Capital One shall provide
Borrower with the terms on which Capital One would be willing to provide
permanent financing for the acquisition of such Property, including, without
limitation, loan amount, term, fees, interest rate and prepayment penalties, if
any (“Capital One
Proposed Terms”).  If Borrower or such Subsidiary Guarantor
elects to obtain such permanent financing from any source other than Capital
One, upon terms that are not materially more favorable to Borrower or such
Subsidiary Guarantor than the Capital One Proposed Terms, then Borrower shall be
obligated to pay to Capital One, on the closing date of such permanent
financing, a special fee in the amount of 0.25% of the maximum amount made
available to Borrower or such Subsidiary Guarantor pursuant to such permanent
financing.

       

      
        
          
          

        

        
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      6.22           Lending
Arrangements.  For so long as Capital One acts as the Agent
hereunder, Borrower shall maintain aggregate bank deposits with Capital One
having an average balance of not less than $3,000,000, as determined by Agent on
the first (1st)
Business Day of each calendar quarter based on the daily account balance of such
accounts during the immediately preceding calendar quarter (the “Average Balance
Requirement”).  If Borrower fails to satisfy the Average
Balance Requirement for any two (2) consecutive calendar quarters, then the
Applicable Margin shall be increased by 0.50% for the remainder of the term of
the Loans.

       

      ARTICLE
VII

       

      NEGATIVE
COVENANTS

       

      The
Borrower hereby covenants and agrees that, so long as any Lender shall have any
Commitment hereunder, or any Loan or other Obligation shall remain unpaid or
unsatisfied, unless the Agent waives compliance in writing:

       

      7.01           Liens.  Borrower
shall not, directly or indirectly, make, create, incur, assume or suffer to
exist any Liens on any of its legal or beneficial interests in any Subsidiary
Guarantor.  The REIT shall not, directly or indirectly, make, create,
incur, assume or suffer to exist any Liens on any of its legal or beneficial
interests in Borrower.

       

      7.02           Indebtedness.  No
Subsidiary Guarantor shall create, incur, assume, suffer to exist, or otherwise
become or remain directly or indirectly liable with respect to, any Indebtedness
except:

       

         
(a)           Indebtedness Under This
Agreement.  Indebtedness incurred pursuant to this
Agreement;

       

         
(b)           Accounts
Payable.  Accounts payable to trade creditors for goods and
services and current operating liabilities (not the result of the borrowing of
money) incurred in the Ordinary Course of Business in accordance with customary
terms and paid within the specified time, unless contested in good faith by
appropriate proceedings and reserved for in accordance with GAAP;
and

       

      7.03           Contingent
Obligations.  No Subsidiary Guarantor shall create, incur,
assume or suffer to exist any Contingent Obligations.

       

      7.04           [Reserved].  

       

      7.05           [Reserved].

       

      7.06           Consolidations and
Mergers.  Except for Permitted Transfers, neither the Borrower,
nor the REIT, nor any Subsidiary Guarantor shall merge, consolidate with or
into, or convey, transfer, lease or otherwise dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its
Properties (whether now owned or hereafter acquired) to or in favor of any
Person.

       

      
        
          
          

        

        
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      7.07           Liquidations; Changes in
Structure.  Except for Permitted Transfers, neither the
Borrower, nor the REIT, nor any Subsidiary Guarantor shall liquidate, wind-up or
dissolve, or make any changes in its equity capital structure (including changes
in the terms of the REIT's outstanding Stock), or amend its Organizational
Documents in any material respect.

       

      7.08           Changes in Business;
Investments.  Neither the Borrower, nor the REIT, nor any
Subsidiary Guarantor shall directly or indirectly own or acquire any material
assets or make any Investments (including, without limitation, loans,
partnership or joint venture interests, investments in subsidiaries or other
corporations, trusts or entities) other than investments in net leased
Properties.

       

      7.09           [Reserved].   

       

      7.10           Transactions with
Affiliates.  Neither the Borrower, nor the REIT, nor any
Subsidiary shall enter into any transaction with any Affiliate of the Borrower
or of any such Person, except (a) as expressly permitted by this Agreement,
or (b) in the Ordinary Course of Business and pursuant to the reasonable
requirements of the business of the Borrower or such Person; in each case (a)
and (b), upon fair and reasonable terms no less favorable to such Person than
would obtain in a comparable arm's-length transaction with a Person not such an
Affiliate.

       

      7.11           Special Covenants Relating
to the REIT.  The REIT shall not:

       

         
(a)           Except for
Permitted Transfers, make any Disposition of or encumber, pledge or hypothecate,
whether directly or indirectly, all or any portion of its interest in the
Borrower or any rights to distributions therefrom;

       

         
(b)           Fail for
any reason whatsoever, whether voluntarily or involuntarily, to be the sole
general partner of the Borrower;  and

       

         
(c)           Cease to
have REIT Status.

       

      7.12           Use of
Proceeds.  The Borrower shall not use any portion of the Loan
proceeds, directly or indirectly, (a) to purchase or carry Margin Stock,
(b) to repay or otherwise refinance indebtedness of the Borrower or others
incurred to purchase or carry Margin Stock, (c) to extend credit for the
purpose of purchasing or carrying any Margin Stock, (d) to acquire any
security in any transaction that is subject to Section 13 or 14 of the Exchange
Act, or (e) for any purpose other than those permitted by Section
6.10.

       

      7.13           Taxation of the
Borrower.  The Borrower shall at all times be taxed as a
partnership under the Code and not as an association taxable as a
corporation.  

       

      7.14           ERISA.  The
Borrower shall not, and shall not suffer or permit the REIT, or any Subsidiary
to, (a) terminate any Plan subject to Title IV of ERISA so as to result in
any material (in the opinion of the Agent) liability to the Borrower or any
ERISA Affiliate, (b) permit to exist any ERISA Event or any other event or
condition, which presents the risk of a material (in the opinion of the Agent)
liability to any member of the Controlled Group, (c) make a complete or
partial withdrawal (within the meaning of ERISA Section 4201) from any
Multiemployer Plan so as to result in any material (in the opinion of the Agent)
liability to the Borrower or any ERISA Affiliate, (d) enter into any new
Plan or modify any existing Plan so as to increase its obligations thereunder
which could result in any material (in the opinion of the Agent) liability to
any member of the Controlled Group, or (e) permit the present value of all
nonforfeitable accrued benefits under any Plan (using the actuarial assumptions
utilized by the PBGC upon termination of a Plan) materially (in the opinion of
the Agent) to exceed the fair market value of Plan assets allocable to such
benefits, all determined as of the most recent valuation date for each such
Plan.

       

      
        
          
          

        

        
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      7.15           Borrowing Base
Mix.  

       

         
(a)           In no event
shall greater than forty-five percent (45%) of the aggregate Appraised Value of
all Borrowing Base Properties be attributable to Non-Investment Grade Borrowing
Base Properties without the prior written consent of Agent.  If any
Investment Grade Tenant becomes a Non-Investment Grade Tenant (as a result of a
downgrade of such tenant’s debt rating or of a default or termination of the
applicable Net Lease) after the date upon which the applicable Property becomes
a Borrowing Base Property, and same results in either (a) the Outstanding Amount
being in excess of the Borrowing Base or (b) Borrower being in breach of its
covenant contained in this Section 7.15, then
Borrower shall immediately notify Agent of same, and Borrower shall be required
to (i) substitute additional collateral acceptable to Agent in its sole
discretion, (ii) make a prepayment of the Loan in amount sufficient to cause
Borrower to be in compliance with all covenants herein or (iii) replace such
Non-Investment Grade Borrowing Base Property with an Investment Grade Borrowing
Base Property, in any event, within seventy-five (75) days of downgrade or such
default and/or termination of the Net Lease.

       

         
(b)           In no event
shall greater than twenty percent (20%) of the aggregate Appraised Value of all
Borrowing Base Properties be attributable to Borrowing Base Properties for which
the remaining term of the Net Lease is less than ten (10) years.

       

         
(c)           In no event
shall greater than ten percent (10%) of the aggregate Appraised Value of all
Borrowing Base Properties be attributable to Borrowing Base Properties owned by
Subsidiary Guarantors that are not wholly-owned by Borrower.

       

      7.16           Financial
Covenants.  

       

         
(a)           Minimum Tangible Net
Worth.  The Borrower shall not permit, at any time, its
Tangible Net Worth to be less than $100,000,000.

       

         
(b)           Debt-to-Total
Assets.  The Borrower shall not permit at any time the ratio of
Outstanding Indebtedness to Total Assets to exceed 0.6:1.0.

       

         
(c)           Liquidity.  The
Borrower shall not permit its Liquid Assets, as determined on the last Business
Day of each calendar quarter based on the daily average of its Liquid Assets
during such calendar quarter, to be less than $3,000,000.

       

      
        
          
          

        

        
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(d)           Consolidated Corporate Debt
Yield.  The Borrower shall not permit the Consolidated Debt
Yield as of the end of any calendar quarter to be less than twelve percent
(12%).

       

         
(e)           Collateral Corporate Debt
Yield.  The Borrower shall not permit the Collateral Debt Yield
as of the end of any calendar quarter to be less than fourteen percent
(14%).

       

         
(f)           Debt Service Coverage
Ratio.  The Borrower shall not permit the Debt Service Coverage
Ratio to be less than 1.45:1.00 on a quarterly basis.

       

         
(g)           Interest Rate
Exposure.  The Borrower shall not permit its Unhedged Interest
Exposure to exceed ten percent (10%) of its Total Mortgage
Indebtedness.

       

      7.17           Accounting
Changes.  Neither the Borrower nor the REIT shall make any
significant change in accounting treatment or reporting practices, except as
required by GAAP, or change its fiscal year.

       

      7.18           Management.  Borrower
shall not, and shall not permit any Subsidiary Guarantor to, enter into, amend,
modify, supplement or terminate any property management agreement with respect
to any Borrowing Base Property, without the prior written consent of Agent,
which consent shall not be unreasonably withheld conditioned or delayed,
provided that any such manager executes and delivers to Agent a consent and
subordination of management agreement in form reasonably acceptable to
Agent.

       

      7.19           Patriot Act
Compliance.  

       

         
(a)           Borrower
will use its good faith and commercially reasonable efforts to comply with the
Patriot Act (as defined below) and all applicable requirements of governmental
authorities having jurisdiction over Borrower, the REIT and the Subsidiaries,
including those relating to money laundering and terrorism.  Agent
shall have the right to audit Borrower’s compliance with the Patriot Act and all
applicable requirements of governmental authorities having jurisdiction over
Borrower, the REIT and the Subsidiaries, including those relating to money
laundering and terrorism.  In the event that Borrower fails to comply
with the Patriot Act or any such requirements of governmental authorities, then
Agent may, at its option, cause Borrower to comply therewith and any and all
reasonable costs and expenses incurred by Agent in connection therewith shall be
secured by the Collateral Documents and the other Loan Documents and shall be
immediately due and payable.  For purposes hereof, the term “Patriot Act” means
the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as the same may
be amended from time to time, and corresponding provisions of future
laws.

       

         
(b)           None of
Borrower, the REIT, any Subsidiary or any partner in Borrower, the REIT or any
Subsidiary or member of such partner nor any owner of a direct or indirect
interest in Borrower, the REIT or any Subsidiary (a) is listed on any Government
Lists (as defined below), (b) is a person who has been determined by competent
authority to be subject to the prohibitions contained in Presidential Executive
Order No. 13224 (Sept. 23, 2001) or any other similar prohibitions contained in
the rules and regulations of OFAC (as defined below) or in any enabling
legislation or other Presidential Executive Orders in respect thereof, (c) has
been previously indicted for or convicted of any felony involving a crime or
crimes of moral turpitude or for any Patriot Act Offense (as defined below), or
(d) is currently under investigation by any governmental authority for alleged
criminal activity.  For purposes hereof, the term “Patriot Act Offense”
means any violation of the criminal laws of the United States of America or of
any of the several states, or that would be a criminal violation if committed
within the jurisdiction of the United States of America or any of the several
states, relating to terrorism or the laundering of monetary instruments,
including any offense under (a) the criminal laws against terrorism; (b) the
criminal laws against money laundering, (c) the Bank Secrecy Act, as amended,
(d) the Money Laundering Control Act of 1986, as amended, or the (e) Patriot
Act.  “Patriot Act Offense” also includes the crimes of conspiracy to
commit, or aiding and abetting another to commit, a Patriot Act
Offense.  For purposes hereof, the term “Government Lists”
means (i) the Specially Designated Nationals and Blocked Persons Lists
maintained by Office of Foreign Assets Control (“OFAC”), (ii) any
other list of terrorists, terrorist organizations or narcotics traffickers
maintained pursuant to any of the Rules and Regulations of OFAC that Lender
notified Borrower in writing is now included in “Governmental Lists”, or (iii)
any similar lists maintained by the United States Department of State, the
United States Department of Commerce or any other government authority or
pursuant to any Executive Order of the President of the United States of America
that Agent or any Lender notified Borrower in writing is now included in
“Governmental Lists”.

       

      
        
          
          

        

        
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      ARTICLE
VIII

       

      EVENTS OF
DEFAULT

       

      8.01           Event of
Default.  Any of the following shall constitute an “Event of
Default”:

       

         
(a)           Non-Payment.  The
Borrower shall fail to pay, (i) when and as required to be paid herein, any
amount of principal of or interest on any Loan, or (ii) within five (5)
days after the same shall become due, any fee or other amount payable hereunder
or pursuant to any other Loan Document; or

       

         
(b)           Representation or
Warranty.  Any representation or warranty by the Borrower, the
REIT or any Subsidiary made or deemed made herein, in any Loan Document, or in
any certificate, document or financial or other statement by the Borrower, the
REIT, or any Subsidiary, or any Responsible Officer, furnished at any time under
this Agreement, or in or under any Loan Document, shall prove to have been
incorrect in any material respect on or as of the date made or deemed made;
or

       

         
(c)           Specific
Defaults.  The Borrower shall fail to perform or observe any
term, covenant or agreement contained in Section 2.16, or
Section 6.06,
Section 6.10,
Section 6.11
and/or in Article
VII; or

       

      
        
          
          

        

        
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(d)           Other
Defaults.  The Borrower shall fail to perform or observe any
other term or covenant contained in this Agreement or any Loan Document, and
such default shall continue unremedied for a period of thirty (30) days after
the date upon which written notice thereof is given to the Borrower by the Agent
or any Lender, or, with respect to any default which is not reasonably
susceptible to cure within such 30-day period, within a reasonable period of
time following written notice of such default, provided that Borrower promptly
commences and diligently pursues such cure to completion; provided, however, in
no event shall such period of time exceed sixty (60) days; or

       

         
(e)           Cross-Default.  The
Borrower or the REIT shall fail, after any applicable cure period, (i) to
make any payment in respect of any Indebtedness or Guaranty Obligation which is
fully recourse to the Borrower or the REIT, as applicable, in excess of
$25,000,000 in the aggregate when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) beyond any applicable notice
and/or cure period; or (ii) to perform or observe any other condition or
covenant beyond any applicable notice and/or cure period, or any other event
shall occur or condition exist, under any agreement or instrument relating to
any such Indebtedness or Guaranty Obligation which is fully recourse to the
Borrower or the REIT, as applicable, in excess of $25,000,000 in the aggregate,
if the effect of such failure, event or condition is to cause, or to permit the
holder or holders of such Indebtedness or the beneficiary or beneficiaries of
such Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, such Indebtedness to be declared to be
due and payable prior to its stated maturity, or such Guaranty Obligation to
become payable or cash collateral in respect thereof to be demanded;
or

       

         
(f)           Bankruptcy or
Insolvency.  The Borrower, the REIT, or any Subsidiary
Guarantor shall (i) become insolvent, or generally fail to pay, or admit in
writing its inability to pay, its debts as they become due, subject to
applicable grace periods, if any, whether at stated maturity or otherwise;
(ii) voluntarily cease to conduct its business in the ordinary course;
(iii) commence any Insolvency Proceeding with respect to itself; or
(iv) take any action to effectuate or authorize any of the foregoing;
or

       

         
(g)           Involuntary
Proceedings. (i) Any involuntary Insolvency Proceeding shall be
commenced or filed against the Borrower, the REIT, or any Subsidiary Guarantor,
or any writ, judgment, warrant of attachment, execution or similar process,
shall be issued or levied against a substantial part of such Person's
Properties, and any such proceeding or petition shall not be dismissed, or such
writ, judgment, warrant of attachment, execution or similar process shall not be
released, vacated or fully bonded within sixty (60) days after commencement,
filing or levy; (ii) the Borrower, the REIT, or any Subsidiary Guarantor
shall admit the material allegations of a petition against it in any Insolvency
Proceeding, or an order for relief (or similar order under non-U.S. law) is
ordered in any Insolvency Proceeding; or (iii) the Borrower, the REIT, or
any Subsidiary Guarantor shall acquiesce in the appointment of a receiver,
trustee, custodian, conservator, liquidator, mortgagee in possession (or agent
therefor), or other similar Person for itself or a substantial portion of its
Property or business; or

       

         
(h)           ERISA. (i) A
member of the Controlled Group shall fail to pay when due, after the expiration
of any applicable grace period, any installment payment with respect to its
withdrawal liability under a Multiemployer Plan; (ii) the Borrower or an ERISA
Affiliate shall fail to satisfy its contribution requirements under Section
412(c)(11) of the Code, whether or not it has sought a waiver under Section
412(d) of the Code; (iii) in the case of an ERISA Event involving the withdrawal
from a Plan of a “substantial employer” (as defined in Section 4001(a)(2) or
Section 4062(e) of ERISA), the withdrawing employer's proportionate share of
that Plan's Unfunded Pension Liabilities is more than $250,000; (iv) in the case
of an ERISA Event involving the complete or partial withdrawal from a
Multiemployer Plan, the withdrawing employer has incurred a withdrawal liability
in an aggregate amount exceeding $250,000; (v) in the case of an ERISA Event not
described in clause (iii) or (iv), the Unfunded Pension Liabilities of the
relevant Plan or Plans exceed $250,000; (vi) a Plan that is intended to be
qualified under Section 401(a) of the Code shall lose its qualification, and the
loss can reasonably be expected to impose on members of the Controlled Group
liability (for additional taxes, to Plan participants, or otherwise) in the
aggregate amount of $250,000 or more; (vii) the commencement or increase of
contributions to, or the adoption of or the amendment of a Plan by, a member of
the Controlled Group shall result in a net increase in unfunded liabilities to
the Controlled Group in excess of $250,000; (viii) any member of the Controlled
Group engages in or otherwise becomes liable for a non-exempt prohibited
transaction and the initial tax or additional tax under section 4975 of the Code
relating thereto might reasonably be expected to exceed $250,000; (ix) a
violation of section 404 or 405 of ERISA or the exclusive benefit rule under
section 401(a) of the Code if such violation might reasonably be expected to
expose a member or members of the Controlled Group to monetary liability in
excess of $250,000; (x) any member of the Controlled Group is assessed a tax
under section 4980B of the Code in excess of $250,000; or (xi) the occurrence of
any combination of events listed in clauses (iii) through (x) that involves a
potential liability, net increase in aggregate Unfunded Pension Liabilities,
unfunded liabilities, or any combination thereof, in excess of
$250,000.

       

      
        
          
          

        

        
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(i)           Monetary
Judgments.  One or more final (non-interlocutory) judgments,
orders or decrees shall be entered against the Borrower, the REIT, or any
Subsidiary Guarantor involving in the aggregate a liability (not fully covered
by insurance) as to any single or related series of transactions, incidents or
conditions, of $15,000,000 or more, and the same shall remain unvacated and
unstayed pending appeal for a period of thirty (30) days after the entry
thereof; or

       

         
(j)           Non-monetary
Judgments.  Any non-monetary judgment, order or decree shall be
rendered against the Borrower, the REIT, or any Subsidiary Guarantor that has or
would reasonably be expected to have a Material Adverse Effect, and there shall
be any period of ten (10) consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be
in effect; or

       

         
(k)           Collateral and Guaranty
Documents.

       

        
(i)           Any
provision of any Collateral Document shall for any reason cease to be valid and
binding on or enforceable against the Borrower or other Person party thereto
(except to the extent that the same results solely from an act or omission of
the Agent or the Lenders), or the Borrower or such Person shall so state in
writing or bring an action to limit its obligations or liabilities thereunder;
or

       

      
        
          
          

        

        
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(ii)           Any
Collateral Document shall for any reason (other than pursuant to the terms
thereof) cease to create a valid security interest in the Collateral purported
to be covered thereby, or such security interest shall for any reason cease to
be a perfected and first-priority security interest subject only to Permitted
Exceptions; or

       

        
(iii)           Any party
to a Collateral Document (other than the Agent or Lenders) shall fail to perform
or observe any term or covenant contained in such Collateral Document, or any
other event or condition shall occur or exist under a Collateral Document that
constitutes an “Event of Default” as defined therein; or

       

         
(l)           Material Adverse
Effect.  There shall occur any act, omission, change,
occurrence or event which has an Material Adverse Effect; or

       

         
(m)           Material Licenses or
Permits.  The Borrower, the REIT, or any Subsidiary Guarantor
shall lose, through suspension, termination, impoundment, revocation, failure to
renew or otherwise, any material license or permit;

       

         
(n)           Environmental
Liens.  The Borrower, the REIT, or any Subsidiary Guarantor or
any of their respective properties shall become subject to one or more Liens for
costs or damages in excess of $100,000 individually or in the aggregate under
any Environmental Law and such liens shall remain in place for thirty (30) days
after the creation thereof;

       

         
(o)           Change of
Control.  A Change of Control occurs.

       

      8.02           Remedies.  If
any Event of Default occurs, the Agent shall, at the request of, or may, with
the consent of, the Requisite Lenders:

       

         
(a)           Termination of
Commitment.  Declare the Commitment of each Lender to make
Loans to be terminated, whereupon such Commitments shall forthwith be
terminated;

       

         
(b)           Acceleration.  Declare
(i) the unpaid principal amount of all outstanding Loans and all interest
accrued and unpaid thereon, and (ii) all other amounts owing or payable
hereunder or under any other Loan Document to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived; and

       

         
(c)           Other
Remedies.  Exercise on behalf of itself and the Lenders all
rights and remedies available to it and the Lenders under the Loan Documents or
applicable law;

       

      provided, however,
that upon the occurrence of any event specified in Section 8.01(f) or 8.01(g) (in the case
of clause (i) of Section 8.01(g) upon
the expiration of the sixty (60)-day period mentioned therein), the Commitment
of each Lender to make Loans shall automatically terminate, and the unpaid
principal amount of all outstanding Loans and interest accrued and unpaid
thereon, and all other amounts owing or payable hereunder as aforesaid shall
automatically become due and payable without further act of any Agent or
Lender.

       

      
        
          
          

        

        
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      8.03           Rights Not
Exclusive.  The rights provided for in this Agreement and the
other Loan Documents are cumulative and are not exclusive of any other rights,
powers, privileges or remedies provided by law or in equity, or under any other
instrument, document or agreement now existing or hereafter
arising.

       

      ARTICLE
IX

       

      THE
AGENT

       

      9.01           Appointment and
Authorization.  Each Lender hereby irrevocably appoints,
designates and authorizes the Agent to take such action on its behalf under the
provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of
this Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto.  Notwithstanding any provision to the
contrary contained elsewhere in this Agreement or in any other Loan Document,
Agent shall not have any duties or responsibilities except those expressly set
forth herein, nor shall Agent have or be deemed to have any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist on the part of
Agent.

       

      9.02           Delegation of
Duties.  Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  Agent shall not be responsible for
the negligence or misconduct of any agent or attorney-in-fact that it selects
with reasonable care.

       

      9.03           Liability of
Agent.  The Agent, its respective Affiliates, or their
respective officers, directors, employees, agents, or attorneys-in-fact (all of
the foregoing being collectively referred to as the “Agent-Related
Persons”) shall not (a) be liable for any action taken or omitted to
be taken by any of them under or in connection with this Agreement or any other
Loan Document (except for its own gross negligence or willful misconduct), or
(b) be responsible in any manner to any of the Lenders for any recital,
statement, representation or warranty made by the Borrower, the REIT, or any
Subsidiary or any Affiliate of any such Person, or any officer thereof,
contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for in,
or received by Agent under or in connection with, this Agreement or any other
Loan Document, or for the value of any Collateral or the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement, any
other Loan Document, or for any failure of the Borrower, the REIT or any other
party to any Loan Document to perform its obligations hereunder or
thereunder.  No Agent-Related Person shall be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of any
of the agreements contained in, or conditions of, this Agreement or any other
Loan Document, or to inspect the Properties, books or records of the Borrower,
the REIT, or any Subsidiary or Affiliates thereof.

       

      9.04           Reliance by
Agent.

       

      
        
          
          

        

        
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(a)           Generally.  The
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any writing, resolution, notice, consent, certificate, affidavit, letter,
telegram, telecopy, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to the Borrower), independent accountants and
other experts selected by the Agent.  The Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Requisite Lenders as it deems appropriate and, if it so requests, it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or
any other Loan Document in accordance with a request or consent of the Requisite
Lenders, and such request and any action taken or failure to act pursuant
thereto shall be binding upon all of the Lenders.

       

         
(b)           Conditions
Precedent.  For purposes of determining compliance with the
conditions specified in Sections 4.01
and 4.02 (as to
the initial borrowing hereunder), each Lender that has executed this Agreement
shall be deemed to have consented to, approved or accepted or to be satisfied
with each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to such Lender, unless an officer of
the Agent responsible for the transactions contemplated by the Loan Documents
shall have received notice from such Lender prior to the initial borrowing
specifying its objection thereto and either such objection shall not have been
withdrawn by notice to the Agent to that effect or such Lender shall not have
made available to the Agent the Lender's ratable portion of such
borrowing.

       

      9.05           Notice of
Default.  The Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default, except with respect
to defaults in the payment of principal, interest and fees required to be paid
to the Agent for the account of the Lenders, unless the Agent shall have
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default.”  In the event that the Agent receives
such a notice, the Agent shall give notice thereof to the
Lenders.  The Agent shall take such action with respect to such
Default or Event of Default as shall be requested by the Requisite Lenders in
accordance with Article VIII;
provided, however, that unless
and until the Agent shall have received any such request, it may (but shall not
be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable or in the
best interest of the Lenders.

       

      9.06           Credit
Decision.  Each Lender expressly acknowledges that none of the
Agent-Related Persons has made any representation or warranty to such Lender and
that no act by the Agent hereinafter taken, including any review of the affairs
of the Borrower, the REIT, or any Subsidiary, shall be deemed to constitute any
representation or warranty by the Agent to any Lender.  Each Lender
represents to the Agent that such Lender has, independently and without reliance
upon the Agent and based on such documents and information as such Lender has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, Properties, financial and other condition and
creditworthiness of the Borrower, the REIT, or any Subsidiary, and all
applicable bank regulatory laws relating to the transactions contemplated
thereby, and made its own decision to enter into this Agreement and extend
credit to the Borrower hereunder.  Each Lender also represents that it
will, independently and without reliance upon the Agent and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking
action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business,
prospects, operations, Properties, financial and other condition and
creditworthiness of the Borrower, the REIT and the
Subsidiaries.  Except for notices, reports and other documents
expressly herein required to be furnished to the Lenders by the Agent, Agent
shall have no duty or responsibility to provide any Lender with any credit or
other information concerning the business, prospects, operations, Properties,
financial and other condition or creditworthiness of the Borrower, the REIT, and
the Subsidiaries which may come into the possession of any of the Agent-Related
Persons.

       

      
        
          
          

        

        
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      9.07           Indemnification.  The
Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not
reimbursed by or on behalf of the Borrower and without limiting the obligation
of the Borrower to do so) ratably from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses and disbursements of any kind whatsoever which may at any time
(including at any time following the repayment of the Loans) be imposed on,
incurred by or asserted against any such Person in any way relating to or
arising out of this Agreement or any document contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by any such Person under or in connection with any of
the foregoing; provided, however, that no
Lender shall be liable for the payment to the Agent-Related Persons of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting solely from such
Person's gross negligence or willful misconduct.  Without limitation
of the foregoing, each Lender shall reimburse the Agent upon demand (to the
extent the Agent is not reimbursed upon demand by the Borrower, unless the Agent
is legally restricted from making such demand upon the Borrower, in which case
demand need not be made upon the Borrower) for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein to the extent that the Agent is not
reimbursed for such expenses by or on behalf of the Borrower.  Without
limiting the generality of the foregoing, if the IRS or any authority of the
United States or other jurisdiction asserts a claim that the Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
(because the appropriate form was not delivered or was not properly executed, or
because such Lender failed to notify the Agent of a change in circumstances
which rendered the exemption from, or reduction of, withholding tax ineffective,
or for any other reason), such Lender shall indemnify the Agent fully for all
amounts paid, directly or indirectly, by the Agent as tax or otherwise,
including penalties and interest, and including any taxes imposed by any
jurisdiction on the amounts payable to the Agent under this Section 9.07,
together with all costs, expenses and Attorney Costs.  The obligation
of the Lenders in this Section shall survive the payment of all
Obligations.

       

      
        
          
          

        

        
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      9.08           Agent in Individual
Capacity.  Capital One (and any other Lender that may hereafter
serve as Agent) and each of their respective Affiliates may make loans to, issue
letters of credit for the account of, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial
advisory or other business with, the Borrower, the REIT and the Subsidiaries and
Affiliates as though Capital One (or any other such Lender) were not the agent
hereunder and without notice to the Lenders.  With respect to its
Loans, Capital One (and any other Lender that may hereafter serve as Agent),
shall have the same rights and powers under this Agreement as any other Lender
and may exercise the same as though each of them were not an agent, and the
terms “Lender” and “Lenders” shall include Capital One (and any other Lender
that may hereafter serve as Agent), in its individual capacity.

       

      9.09           Successor
Agents.  Upon the written consent of the Borrower, not to be
unreasonably withheld, the Agent may resign as Agent upon thirty (30) days'
notice to the Lenders.  If an Agent shall resign under this Agreement,
the Requisite Lenders shall appoint from among the Lenders a successor Agent for
the Lenders, which successor Agent shall, if no Default or Event of Default
exists hereunder, be approved by the Borrower.  If no successor Agent
is appointed prior to the effective date of the resignation of the retiring
Agent, the retiring Agent shall appoint, after consulting with the Lenders and
the Borrower, a successor Agent.  Upon the acceptance of its
appointment as successor Agent hereunder, such successor Agent shall succeed to
all the rights, powers and duties of the retiring Agent, and the term “Agent”
shall mean such successor Agent, and the retiring Agent's rights, powers and
duties as Agent shall be terminated.  After any retiring Agent's
resignation hereunder as Agent, the provisions of this Article IX and Sections 10.04
and 10.05 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was an Agent under this Agreement.

       

      9.10           Collateral
Matters.

       

         
(a)           Perfection.  The
Agent is authorized on behalf of all the Lenders, without the necessity of any
notice to or further consent from the Lenders, from time to time to take any
action with respect to any Collateral or the Collateral Documents which may be
necessary to perfect and maintain perfected the security interest in and Liens
upon the Collateral granted pursuant to the Collateral Documents.

       

         
(b)           Release.  Upon
request by the Agent at any time, the Lenders will confirm in writing the
Agent's authority to release particular types or items of Collateral pursuant to
Section 2.16(d)
or any other provision of the Loan Documents.  The Agent shall be
completely protected in taking any action directed by all the Lenders in
response to such request and shall incur no liability to the Borrower or any
Lender for failing to take any action as to which all of the Lenders do not
concur.

       

         
(c)           No Other
Collateral.  Each Lender agrees with and in favor of each other
(which agreement shall not be for the benefit of the Borrower, the REIT, or any
Subsidiaries) that the Borrower's obligation to such Lender under this Agreement
and the other Loan Documents is not and shall not be secured by any real
property collateral now or hereafter acquired by such Lender other than the
Collateral hereunder.

       

      
        
          
          

        

        
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      ARTICLE
X

       

      MISCELLANEOUS

       

      10.01         Amendments and
Waivers.

       

         
(a)           Generally.  No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent with respect to any departure therefrom, shall be
effective unless the same shall be in writing and signed by the Requisite
Lenders, and then such amendment, waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

       

         
(b)           Matters Requiring Unanimous
Consent.  Not withstanding the terms of Section 10.01(a), no
amendment or waiver of any provision of this Agreement or any other Loan
Document, no agreement to forebear from acting upon any departure by the
Borrower therefrom, and no consent with respect to any departure by the Borrower
therefrom, shall be effective to do any of the following unless the same is in
writing and signed by all the Lenders:

       

        
(i)           increase
the Commitment of any Lender;

       

        
(ii)          postpone or
delay any date fixed for any payment of principal, interest, fees or other
amounts due hereunder or under any Loan Document whether by acceleration or
otherwise;

       

        
(iii)         reduce the principal
of, or the rate of interest specified herein on, any Loan, or any fees or other
amounts payable hereunder or under any Loan Document;

       

        
(iv)        change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Loans required
for the Lenders or any of them to take any action hereunder;

       

        
(v)         amend Section 2.15 (Sharing
of Payments, Etc.), Section 6.10 (Use of
Proceeds), Section
8.02 (Remedies), Section 10.15
(Governing Law and Jurisdiction) or this Section 10.01;
or

       

        
(vi)        release any portion of the
Collateral except as otherwise may be provided in applicable Collateral
Documents or Section
2.16(d) or except where the consent of the Requisite Lenders only is
specifically provided for.

       

         
(c)           Matters Requiring Agents'
Consent.  Notwithstanding the terms of Section 10.01(a), no
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent with respect to any departure by the Borrower
therefrom, shall be effective to affect the rights or duties of the Agent under
this Agreement or any other Loan Document unless the same is in writing and
signed by the Agent.

       

      
        
          
          

        

        
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      10.02         Notices.

       

         
(a)           Delivery.  All
notices, requests and other communications provided for hereunder shall be in
writing (including, unless the context expressly otherwise provides, email) and
mailed or emailed, (i) if to the Borrower, to its address specified on the
signature pages hereof, (ii) if to any Lender, to its Domestic Lending Office,
and (iii) if to Agent, to its address specified on the signature pages hereof;
or, as to the Borrower or the Agent, to such other address as shall be
designated by such party in a written notice to the other parties, and as to
each other party, at such other address as shall be designated by such party in
a written notice to the Borrower and the Agent.

       

         
(b)           Receipt.  All
such notices and communications shall, when transmitted by overnight delivery or
via email, be effective when delivered for overnight delivery or, with respect
to email, when confirmation of receipt of same is delivered to the sender,
except that notices pursuant to Article II or
VIII shall not
be effective until actually received by the Agent.

       

         
(c)           Reliance.  The
Borrower acknowledges and agrees that any agreement of the Agent and the Lenders
under Article II to
receive certain notices by telephone and email is solely for the convenience and
at the request of the Borrower.  The Agent and the Lenders shall be
entitled to rely on the authority of any Person purporting to be a Person
authorized by the Borrower to give such notice, and the Agent and the Lenders
shall not have any liability to the Borrower or any other Person on account of
any action taken or not taken by the Agent and the Lenders in reliance upon such
telephonic or email notice.  The obligation of the Borrower to repay
the Loans shall not be affected in any way or to any extent by any failure by
the Agent and the Lenders to receive written confirmation of any telephonic or
email notice or the receipt by the Agent and the Lenders of a confirmation which
is at variance with the terms understood by the Agent and the Lenders to be
contained in the telephonic or email notice.

       

      10.03         No Waiver; Cumulative
Remedies.  No failure to exercise and no delay in exercising,
on the part of any Agent or Lender, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege.

       

      10.04         Costs and
Expenses.  The Borrower shall, whether or not the transactions
contemplated hereby shall be consummated:

       

         
(a)           Facility
Expenses.  Pay or reimburse the Agent on demand for all costs
and expenses incurred in connection with the development, preparation, delivery,
administration and execution of, and any amendment, supplement, waiver or
modification to, this Agreement, any Loan Document and any other documents
prepared in connection herewith or therewith, and the consummation of the
transactions contemplated hereby and thereby, including the reasonable Attorney
Costs incurred by the Agent with respect thereto;

       

      
        
          
          

        

        
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(b)           Enforcement
Expenses.  Pay or reimburse the Agent and Lenders on demand for
all costs and expenses incurred by them in connection with the enforcement,
attempted enforcement, or preservation of any rights or remedies (including in
connection with any “workout” or restructuring regarding the Loans) under this
Agreement, any other Loan Document, and any such other documents, including
Attorney Costs incurred by the Agent and Lender; and

       

         
(c)           Collateral
Expenses.  Pay or reimburse the Agent on demand for all
Appraisals pursuant to Section 2.16(d)
(including the allocated cost of internal appraisal services), audits,
environmental inspections and reviews (including the allocated costs of such
internal services) (for which Borrower is obligated to pay under this Agreement)
and search and filing costs, fees and expenses, incurred or sustained by the
Agent in connection with the matters referred to under paragraphs (a) and (b) of
this Section.

       

      10.05         Indemnity.  The
Borrower shall indemnify and hold harmless the Agent, each Lender and each of
their respective officers, directors, employees, counsel, agents and
attorneys-in-fact (each, an “Indemnified Person”)
from and against and pay them for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, charges, expenses or
disbursements (including Attorney Costs) of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement and any other Loan Documents, or the transactions contemplated
hereby and thereby, and with respect to any investigation, litigation or
proceeding related to this Agreement or the Loans or the use of the proceeds
thereof, whether or not any Indemnified Person is a party thereto (all the
foregoing, collectively, the “Indemnified
Liabilities”); provided, that the
Borrower shall have no obligation hereunder to any Indemnified Person with
respect to Indemnified Liabilities arising from the gross negligence or willful
misconduct of such Indemnified Person.  The agreements in this Section 10.05 shall
survive payment of all other Obligations.

       

      10.06         Marshalling; Payments Set
Aside.  Neither the Agent nor any Lender shall be under any
obligation to marshall any assets in favor of the Borrower or any other Person
or against or in payment of any or all of the Obligations.  To the
extent that the Borrower makes a payment or payments to the Agent or any Lender,
or the Agent or any Lender enforces its Liens or exercises its rights of setoff,
and such payment or payments or the proceeds of such enforcement or setoff or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any
other party in connection with any Insolvency Proceeding, or otherwise, then to
the extent of such recovery the obligation or part thereof originally intended
to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such enforcement or setoff had not
occurred.

       

      10.07         Successors and
Assigns.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Borrower may not assign or transfer any
of its rights or obligations under this Agreement without the prior written
consent of the Agent and each Lender, which may be withheld in their sole and
absolute discretion.

       

      
        
          
          

        

        
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      10.08         Assignments, Participations,
etc.

       

         
(a)           Assignments.  Any
Lender may, with the written consent of the Agent, which consent shall not be
unreasonably withheld, at any time assign and delegate to one or more Eligible
Assignees (provided that no written consent of the Agent shall be required in
connection with any assignment and delegation by a Lender to a Lender Affiliate
of such Lender) (each an “Assignee”) all, or
any ratable part of all, of the Loans, the Commitments and the other rights and
obligations of such Lender hereunder, in a minimum amount of $10,000,000; provided, however, that the
Borrower and the Agent may continue to deal solely and directly with such Lender
in connection with the interest so assigned to an Assignee until
(A) written notice of such assignment, together with payment instructions,
addresses and related information with respect to the Assignee, shall have been
given to the Borrower and the Agent by such Lender and the Assignee;
(B) such Lender and its Assignee shall have delivered to the Borrower and
the Agent an Assignment and Acceptance in the form of Exhibit I
(“Assignment and
Acceptance”) together with any Note or Notes subject to such assignment;
(C) such Lender shall have paid to the Agent, for its own account, an
assignment fee in the amount of $1500, if the Assignee is a Lender (without
giving effect to the Assignment), and $3000 in all other cases; and
(D) such Lender shall have delivered to the Agent such documents as may be
required by Section
3.01(f).

       

         
(b)           Rights of
Assignee.  From and after the date that the Agent notifies the
assignor Lender that the Agent has received an executed Assignment and
Acceptance and payment of the assignment fee specified in Section 10.08(a),
(i) the Assignee thereunder shall be a party hereto and, to the extent that
rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, shall have the rights and obligations of a Lender
under the Loan Documents, and (ii) the assignor Lender shall, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Loan Documents.

       

         
(c)           Replacement
Notes.  Within five Business Days after its receipt of
notice by the Agent that the Agent has received an executed Assignment and
Acceptance and payment of the processing fee, the Borrower shall execute and
deliver to the Agent, new Notes evidencing such Assignee's assigned Loans and
Commitment and, if the assignor Lender has retained a portion of its Loans and
its Commitment, replacement Notes in the principal amount of the Loans retained
by the assignor Lender (such Notes to be in exchange for, but not in payment of,
the Notes held by such Lender).  Immediately upon each Assignee's
making its payment under the Assignment and Acceptance, this Agreement shall be
deemed to be amended to the extent, but only to the extent, necessary to reflect
the addition of the Assignee and the resulting adjustment of the Commitments
arising therefrom.  The Commitment allocated to each Assignee shall
reduce such Commitment and participation of the assigning Lender pro
tanto.

       

         
(d)           Participations.  Any
Lender may at any time sell to one or more commercial lenders (a “Participant”)
participating interests in any Loans and Commitment of that Lender and the other
interests of that Lender (the “Originating Lender”)
hereunder and under the other Loan Documents; provided, however, that
(i) the Originating Lender's obligations under this Agreement shall remain
unchanged, (ii) the Originating Lender shall remain solely responsible for
the performance of such obligations, (iii) the Borrower and the Agent shall
continue to deal solely and directly with the originating Lender in connection
with the originating Lender's rights and obligations under this Agreement and
the other Loan Documents, and (iv) no Lender shall transfer or grant any
participating interest under which the Participant shall have rights to approve
any amendment to, or any consent or waiver with respect to, this Agreement or
any other Loan Document, except to the extent such amendment, consent or waiver
would require unanimous consent as described in the first proviso to Section
10.01.  In the case of any such participation, the Participant
shall not have any rights under this Agreement, or any of the other Loan
Documents, and all amounts payable by the Borrower hereunder shall be determined
as if such Lender had not sold such participation; except that, if amounts
outstanding under this Agreement are due and unpaid, or shall have been declared
or shall have become due and payable upon the occurrence of an Event of Default,
each Participant shall be deemed to have the right of setoff in respect of its
participating interest in amounts owing under this Agreement to the same extent
as if the amount of its participating interest were owing directly to it as a
Lender under this Agreement.

       

      
        
          
          

        

        
          84

          
            

          

        

        
          
          

        

      

       

         
(e)           Assignments to Federal
Reserve Lender.  Notwithstanding any other provision contained
in this Agreement or any other Loan Document to the contrary, any Lender may
assign all or any portion of the Loans or Notes held by it to any Federal
Reserve Lender or the United States Treasury as collateral security pursuant to
Regulation A of the Board of Governors of the Federal Reserve System and any
Operating Circular issued by such Federal Reserve Lender, provided that any
payment in respect of such assigned Loans or Notes made by the Borrower to or
for the account of the assigning and/or pledging Lender in accordance with the
terms of this Agreement shall satisfy the Borrower's obligations hereunder in
respect of such assigned Loans or Notes to the extent of such
payment.  No such assignment shall release the assigning Lender from
its obligations hereunder.

       

      10.09         Setoff.  In
addition to any rights and remedies of the Lenders provided by law, if an Event
of Default exists, each Lender is authorized at any time and from time to time,
without prior notice to the Borrower, any such notice being waived by the
Borrower to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing to, such Lender to or for
the credit or the account of the Borrower against any and all obligations owing
to such Lender, now or hereafter existing, irrespective of whether the Agent or
such Lender shall have made demand under this Agreement or any Loan Document and
whether such obligations may be contingent or unmatured.  Each Lender
agrees to promptly notify the Borrower and the Agent after any such setoff and
application made by such Lender; provided, however, that the
failure to give such notice shall not affect the validity of such setoff and
application.  The rights of each Lender under this Section 10.09 are in
addition to the other rights and remedies (including other rights of setoff)
that such Lender may have.  NOTWITHSTANDING THE FOREGOING, NO LENDER
SHALL EXERCISE, OR ATTEMPT TO EXERCISE, ANY RIGHT OF SETOFF, LENDER'S LIEN, OR
THE LIKE, AGAINST ANY DEPOSIT ACCOUNT OR PROPERTY OF THE BORROWER, THE REIT, OR
ANY SUBSIDIARY OR ANY HELD OR MAINTAINED BY THE LENDER, WITHOUT THE PRIOR
WRITTEN CONSENT OF THE REQUISITE LENDERS. 

       

      
        
          
          

        

        
          85

          
            

          

        

        
          
          

        

      

       

      10.10         Notification of Addresses,
Lending Offices, Etc.  Each Lender shall notify the Agent in
writing of any changes in the address to which notices to such Lender should be
directed, of addresses of its Offshore Lending Office, of payment instructions
in respect of all payments to be made to it hereunder and of such other
administrative information as the Agent shall reasonably request.

       

      10.11         Counterparts.  This
Agreement may be executed by one or more of the parties to this Agreement in any
number of separate counterparts, each of which, when so executed, shall be
deemed an original, and all of said counterparts taken together shall be deemed
to constitute but one and the same instrument.  A set of the copies of
this Agreement signed by all the parties shall be lodged with the Borrower and
the Agent.

       

      10.12         Severability.  The
illegality or unenforceability of any provision of this Agreement or any
instrument or agreement required hereunder shall not in any way affect or impair
the legality or enforceability of the remaining provisions of this Agreement or
any instrument or agreement required hereunder.

       

      10.13         No Third Parties
Benefited.  This Agreement is made and entered into for the
sole protection and legal benefit of the Borrower, the Agent and the Lenders,
and their permitted successors and assigns, and no other Person shall be a
direct or indirect legal beneficiary of, or have any direct or indirect cause of
action or claim in connection with, this Agreement or any of the other Loan
Documents.  No Agent or Lender shall have any obligation to any Person
not a party to this Agreement or the other Loan Documents.

       

      10.14         Time.  Time
is of the essence of each term and provision of this Agreement and each of the
other Loan Documents.

       

      10.15         Governing
Law.  THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK; PROVIDED THAT
THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL
LAW.

       

      10.16         Waiver of Jury
Trial.  THE BORROWER, THE AGENT, AND THE LENDERS EACH WAIVE
THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS,
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR
OTHERWISE.  SUBJECT TO SECTION 10.17 BELOW, THE BORROWER, THE
AGENT, AND THE LENDERS EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL
BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE
FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR
OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION
HEREOF OR THEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS.

       

      
        
          
          

        

        
          86

          
            

          

        

        
          
          

        

      

       

      10.17         [Reserved].

       

      10.18         Notice of Claims; Claims
Bar.  THE BORROWER HEREBY AGREES THAT IT SHALL GIVE PROMPT
WRITTEN NOTICE TO THE AGENT OF ANY CLAIM OR CAUSE OF ACTION IT BELIEVES IT HAS,
OR MAY SEEK TO ASSERT OR ALLEGE AGAINST THE AGENT OR ANY LENDER, WHETHER SUCH
CLAIM IS BASED IN LAW OR EQUITY, ARISING UNDER OR RELATED TO THIS AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS, OR TO THE LOANS (OR THE COLLATERAL THEREFOR),
OR ANY ACT OR OMISSION TO ACT BY THE AGENT OR ANY LENDER WITH RESPECT HERETO OR
THERETO, AND THAT IF THE BORROWER SHALL FAIL TO GIVE SUCH PROMPT NOTICE TO THE
AGENT WITH REGARD TO ANY SUCH CLAIM OR CAUSE OF ACTION, THE BORROWER SHALL BE
DEEMED TO HAVE WAIVED, AND SHALL BE FOREVER BARRED FROM BRINGING OR ASSERTING,
SUCH CLAIM OR CAUSE OF ACTION IN ANY ARBITRATION OR ANY SUIT, ACTION OR
PROCEEDING IN ANY COURT OR BEFORE ANY GOVERNMENTAL AGENCY.

       

      10.19         Entire
Agreement.  This Agreement, together with the other Loan
Documents, embodies the entire Agreement and understanding between the Borrower,
the Agent, and the Lenders, and supersedes all prior or contemporaneous
agreements and understandings of such Persons, verbal or written, relating to
the subject matter hereof and thereof, except for any prior arrangements made
with respect to the payment by the Borrower of (or any indemnification for) any
fees, costs or expenses payable to or incurred (or to be incurred) by or on
behalf of the Agent or the Lenders.

       

      10.20         Interpretation.  This
Agreement is the result of negotiations between and has been reviewed by counsel
to the Agent, the Lenders and the Borrower and other parties, and is the product
of all parties hereto.  Accordingly, this Agreement and the other Loan
Documents shall not be construed against the Lenders or the Agent merely because
of the Agent's or Lenders' involvement in the preparation of such documents and
agreements.

       

      10.21         Exculpation of
Lenders.  No Lender undertakes or assumes any responsibility or
duty to the Borrower or any third party to select, review, inspect, examine,
supervise, pass judgment upon or inform the Borrower or any third party of the
existence, quality, adequacy or suitability of:  (a) any appraisals of
any Collateral, (b) any environmental report, or (c) any other matters or items,
including, but not limited to, engineering, soils and seismic reports which are
contemplated in the Loan Documents.  Any such selection, review,
inspection, examination and the like is solely for the purpose of protecting the
Lenders' security and preserving the Lenders' rights under the Loan Documents,
and shall not render any Lender liable to the Borrower or any third party for
the existence, sufficiency, accuracy, completeness or legality
thereof.  No Lender owes any duty of care to protect or inform the
Borrower or any third party against negligent, faulty, inadequate or defective
building or construction or the existence of any environmentally hazardous
condition affecting any Collateral.

       

      
        
          
          

        

        
          87

          
            

          

        

        
          
          

        

      

       

      10.22         Relationship.  Nothing
herein contained shall in any manner be construed as creating any relationship
between the Agent and the Lenders, on the one hand, and the Borrower, on the
other hand, other than as creditor and debtor.  The Borrower agrees to
indemnify, protect, defend and hold the Agent and each Lender harmless from and
against any and all losses, liabilities, damages, and costs and expenses
(including, but not limited to, Attorney Costs and disbursements, including
reasonably allocated costs of in-house counsel) resulting from any other
construction of the parties' relationship. 

      

        [Signature Pages Immediately
Follow]

         

        
          
            
            

          

          
            88

            
              

            

          

          
            
            

          

        

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first written above.

     

    
      
        
          
            
              
                
                  	
                          BORROWER

                        
	 
      
	
                          AMERICAN REALTY CAPITAL
      OPERATING PARTNERSHIP, L.P., a Delaware limited
      partnership

                        
	 
      	 
      
	
                          By:

                        	
                          American
      Realty Capital Trust, Inc., a Maryland corporation, its general
      partner

                        
	 
      	 
      
	 
      	
                          By:

                        	
                          /s/ William M. Kahane

                        
	 
      	
                          Its:

                        	
                          William M. Kahane

                        
	 
      

                

              

            

          

        

      

    

    
      
        
          
            
              	
                      Notices
      to be sent to:

                       

                    
	
                      American
      Realty Capital Trust, Inc.

                    
	 
      
	
                      405
      Park Ave., 15th
      Floor

                    
	
                      New
      York, NY 10022

                    
	
                      Attention:
      William
      M. Kahane 

                    
	 
      
	
                      With
      copy to:

                    
	 
      
	
                      Bond,
      Schoeneck & King, PLLC

                    
	
                      350
      Linden Oaks, Suite 310

                    
	
                      Rochester,
      New York 14625

                    
	
                      Attention:
      Timothy Fitzgerald,
Esq.

                    

            

          

        

      

    

    
      
         

      

      
        89

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  AGENT

                
	 
      
	
                  CAPITAL ONE,
      N.A.,

                
	
                  as
      Agent

                
	 
      
	
                  By:

                	
                  /s/ Benjamin M.
      Stacks

                
	
                  Name:

                	
                  Benjamin M. Stacks

                
	
                  Title:

                	
                  Senior Vice President

                
	 
      
	
                  Notices
      to be sent to:

                
	 
      
	
                  Capital
      One, N.A.

                
	
                  275
      Broadhollow Road

                
	
                  Melville,
      New York 11747

                
	
                  Attention:
      Jennifer Hussey

                
	 
      
	
                  With
      copy to:

                
	 
      
	
                  Morrison
      & Foerster LLP

                
	
                  1290
      Avenue of the Americas

                
	
                  New
      York, New York 10104

                
	
                  Attention:
      Jeffrey J. Temple, Esq.

                
	 
      
	
                  Payments
      to be made to:

                
	 
      
	
                  CAPITAL
      ONE, N.A.

                
	
                  ABA
      #: 021407912

                
	
                  Account
      #: 35523 20002515

                
	
                  Attention:
      Jennifer Hussey

                
	
                  Dept
      ID 39341

                
	
                  Ref:
      American Realty

                

        

      

    

    
      
         

      

      
        90

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  LENDER

                
	 
      
	
                  CAPITAL ONE,
      N.A.,

                
	
                  as
      Agent

                
	 
      
	
                  By:

                	
                  /s/ Benjamin M.
      Stacks

                
	
                  Name:

                	
                  
                    Benjamin M. Stacks

                  

                
	
                  Title:

                	
                  
                    Senior Vice
  President

                  

                
	 
      
	
                  Notices
      to be sent to:

                
	 
      
	
                  Capital
      One, N.A.

                
	
                  275
      Broadhollow Road

                
	
                  Melville,
      New York 11747

                
	
                  Attention:
      Jennifer Hussey

                
	 
      
	
                  With
      copy to:

                
	 
      
	
                  Morrison
      & Foerster LLP

                
	
                  1290
      Avenue of the Americas

                
	
                  New
      York, New York 10104

                
	
                  Attention:
      Jeffrey J. Temple, Esq.

                
	 
      
	
                  Payments
      to be made to:

                
	 
      
	
                  CAPITAL
      ONE, N.A.

                
	
                  ABA
      #: 021407912

                
	
                  Account
      #: 35523 20002515

                
	
                  Attention:
      Jennifer Hussey

                
	
                  Dept
      ID 39341

                
	
                  Ref:
      American Realty

                

        

      

    

    
      
         

      

      
        91

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	
              Page

            
	
              ARTICLE
      I

            	
              DEFINITIONS

            	
              1

            
	 
      	 
      	 
      
	
              1.01

            	
              Defined
      Terms

            	
              1

            
	 
      	 
      	 
      
	
              1.02

            	
              Other
      Definitional Provisions

            	
              25

            
	 
      	 
      	 
      
	
              1.03

            	
              Accounting
      Principles

            	
              26

            
	 
      	 
      	 
      
	
              ARTICLE
      II

            	
              THE
      LOANS

            	
              26

            
	 
      	 
      	 
      
	
              2.01

            	
              Amounts
      and Terms of Commitments

            	
              26

            
	 
      	 
      	 
      
	
              2.02

            	
              Notes

            	
              27

            
	 
      	 
      	 
      
	
              2.03

            	
              Procedure
      for Borrowing

            	
              27

            
	 
      	 
      	 
      
	
              2.04

            	
              Letter
      of Credit Borrowings

            	
              28

            
	 
      	 
      	 
      
	
              2.05

            	
              Voluntary
      Termination or Reduction of Commitments

            	
              35

            
	 
      	 
      	 
      
	
              2.06

            	
              Optional
      Prepayments

            	
              36

            
	 
      	 
      	 
      
	
              2.07

            	
              Mandatory
      Prepayments of Loans

            	
              36

            
	 
      	 
      	 
      
	
              2.08

            	
              Application
      of Proceeds

            	
              36

            
	 
      	 
      	 
      
	
              2.09

            	
              Maturity
      Date; Extension of Maturity Date

            	
              36

            
	 
      	 
      	 
      
	
              2.10

            	
              Interest

            	
              38

            
	 
      	 
      	 
      
	
              2.11

            	
              Fees

            	
              38

            
	 
      	 
      	 
      
	
              2.12

            	
              Computation
      of Fees and Interest

            	
              38

            
	 
      	 
      	 
      
	
              2.13

            	
              Payments
      by the Borrower

            	
              39

            
	 
      	 
      	 
      
	
              2.14

            	
              Payments
      by the Lenders to the Agent

            	
              40

            
	 
      	 
      	 
      
	
              2.15

            	
              Sharing
      of Payments, Etc.

            	
              40

            
	 
      	 
      	 
      
	
              2.16

            	
              Security;
      Additions  to and Release of Borrowing Base
      Properties

            	
              41

            
	 
      	 
      	 
      
	
              ARTICLE
      III

            	
              TAXES,
      YIELD PROTECTION AND ILLEGALITY

            	
              46

            
	 
      	 
      	 
      
	
              3.01

            	
              Taxes

            	
              46

            
	 
      	 
      	 
      
	
              3.02

            	
              Illegality

            	
              49

            
	 
      	 
      	 
      
	
              3.03

            	
              Increased
      Costs and Reduction of Return

            	
              49

            
	 
      	 
      	 
      
	
              3.04

            	
              Funding
      Losses

            	
              50

            
	 
      	 
      	 
      
	
              3.05

            	
              Inability
      to Determine Rates

            	
              50

            
	 
      	 
      	 
      
	
              3.06

            	
              Certificates
      of Lenders

            	
              50

            
	 
      	 
      	 
      
	
              3.07

            	
              Survival

            	
              51

            
	 
      	 
      	 
      
	
              ARTICLE
      IV

            	
              CONDITIONS
      PRECEDENT

            	
              51

            
	 
      	 
      	 
      
	
              4.01

            	
              Conditions
      of First Loan

            	
              51

            
	 
      	 
      	 
      
	
              4.02

            	
              Conditions
      to Each Loan

            	
              52

            
	 
      	 
      	 
      
	
              ARTICLE
      V

            	
              REPRESENTATIONS
      AND WARRANTIES

            	
              53

            
	 
      	 
      	 
      
	
              5.01

            	
              Existence
      and Power

            	
              53

            
	 
      	 
      	 
      
	
              5.02

            	
              Authorization;
      No Conflict

            	
              54

            
	 
      	 
      	 
      
	
              5.03

            	
              Governmental
      Authorization

            	
              54

            

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	
              Page

            
	
              5.04

            	
              Binding
      Effect

            	
              54

            
	 
      	 
      	 
      
	
              5.05

            	
              Litigation

            	
              54

            
	 
      	 
      	 
      
	
              5.06

            	
              Title
      to Properties

            	
              54

            
	 
      	 
      	 
      
	
              5.07

            	
              [Reserved]

            	
              55

            
	 
      	 
      	 
      
	
              5.08

            	
              Financial
      Condition

            	
              55

            
	 
      	 
      	 
      
	
              5.09

            	
              Taxes

            	
              55

            
	 
      	 
      	 
      
	
              5.10

            	
              ERISA
      Compliance

            	
              55

            
	 
      	 
      	 
      
	
              5.11

            	
              Environmental
      Matters

            	
              57

            
	 
      	 
      	 
      
	
              5.12

            	
              Collateral
      Documents

            	
              57

            
	 
      	 
      	 
      
	
              5.13

            	
              Regulated
      Entities

            	
              58

            
	 
      	 
      	 
      
	
              5.14

            	
              Use
      of Proceeds; Margin Regulations

            	
              58

            
	 
      	 
      	 
      
	
              5.15

            	
              REIT
      and Tax Status; Stock Exchange Listing

            	
              58

            
	 
      	 
      	 
      
	
              5.16

            	
              Insurance

            	
              58

            
	 
      	 
      	 
      
	
              5.17

            	
              No
      Default

            	
              58

            
	 
      	 
      	 
      
	
              5.18

            	
              [Reserved]

            	
              58

            
	 
      	 
      	 
      
	
              5.19

            	
              Borrower
      Not a “Foreign Person.”  de

            	
              58

            
	 
      	 
      	 
      
	
              5.20

            	
              Defects

            	
              58

            
	 
      	 
      	 
      
	
              5.21

            	
              Property
      Documents

            	
              58

            
	 
      	 
      	 
      
	
              5.22

            	
              Condemnation

            	
              59

            
	 
      	 
      	 
      
	
              5.23

            	
              Violation
      of Laws; Permits

            	
              59

            
	 
      	 
      	 
      
	
              5.24

            	
              Utilities

            	
              59

            
	 
      	 
      	 
      
	
              5.25

            	
              Leases

            	
              59

            
	 
      	 
      	 
      
	
              5.26

            	
              Full
      Disclosure

            	
              59

            
	 
      	 
      	 
      
	
              ARTICLE
      VI

            	
              AFFIRMATIVE
      COVENANTS

            	
              60

            
	 
      	 
      	 
      
	
              6.01

            	
              Financial
      Information

            	
              60

            
	 
      	 
      	 
      
	
              6.02

            	
              Certificates;
      Other Information

            	
              60

            
	 
      	 
      	 
      
	
              6.03

            	
              Notices

            	
              61

            
	 
      	 
      	 
      
	
              6.04

            	
              Preservation
      of Existence, Etc

            	
              63

            
	 
      	 
      	 
      
	
              6.05

            	
              Maintenance
      of Property

            	
              63

            
	 
      	 
      	 
      
	
              6.06

            	
              Insurance

            	
              63

            
	 
      	 
      	 
      
	
              6.07

            	
              Payment
      of Obligations

            	
              63

            
	 
      	 
      	 
      
	
              6.08

            	
              Compliance
      with Laws

            	
              64

            
	 
      	 
      	 
      
	
              6.09

            	
              Environmental
      Laws

            	
              64

            
	 
      	 
      	 
      
	
              6.10

            	
              Use
      of Proceeds

            	
              64

            
	 
      	 
      	 
      
	
              6.11

            	
              Maintenance
      of REIT Status; Stock Exchange Listing

            	
              64

            
	 
      	 
      	 
      
	
              6.12

            	
              Inspection
      of Property and Books and Records

            	
              64

            

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	
              Page

            
	
              6.13

            	
              Further
      Assurances

            	
              65

            
	 
      	 
      	 
      
	
              6.14

            	
              Communication
      with Accountants

            	
              65

            
	 
      	 
      	 
      
	
              6.15

            	
              Solvency

            	
              65

            
	 
      	 
      	 
      
	
              6.16

            	
              Covenants
      Relating to Borrowing Base Properties

            	
              65

            
	 
      	 
      	 
      
	
              6.17

            	
              Interest
      Rate Protection Agreements

            	
              66

            
	 
      	 
      	 
      
	
              6.18

            	
              Cash
      Management

            	
              66

            
	 
      	 
      	 
      
	
              6.19

            	
              Updated
      Appraisals

            	
              67

            
	 
      	 
      	 
      
	
              6.20

            	
              Subsidiary
      Guarantors

            	
              67

            
	 
      	 
      	 
      
	
              6.21

            	
              Right
      of First Refusal

            	
              67

            
	 
      	 
      	 
      
	
              6.22

            	
              Lending
      Arrangements

            	
              68

            
	 
      	 
      	 
      
	
              ARTICLE
      VII

            	
              NEGATIVE
      COVENANTS

            	
              68

            
	 
      	 
      	 
      
	
              7.01

            	
              Liens

            	
              68

            
	 
      	 
      	 
      
	
              7.02

            	
              Indebtedness

            	
              69

            
	 
      	 
      	 
      
	
              7.03

            	
              Contingent
      Obligations

            	
              70

            
	 
      	 
      	 
      
	
              7.04

            	
              Lease
      Obligations

            	
              70

            
	 
      	 
      	 
      
	
              7.05

            	
              Disposition
      of Properties

            	
              70

            
	 
      	 
      	 
      
	
              7.06

            	
              Consolidations
      and Mergers

            	
              70

            
	 
      	 
      	 
      
	
              7.07

            	
              Liquidations;
      Changes in Structure

            	
              70

            
	 
      	 
      	 
      
	
              7.08

            	
              Changes
      in Business; Investments

            	
              70

            
	 
      	 
      	 
      
	
              7.09

            	
              Restricted
      Payments

            	
              70

            
	 
      	 
      	 
      
	
              7.10

            	
              Transactions
      with Affiliates

            	
              71

            
	 
      	 
      	 
      
	
              7.11

            	
              Special
      Covenants Relating to the REIT

            	
              71

            
	 
      	 
      	 
      
	
              7.12

            	
              Use
      of Proceeds

            	
              71

            
	 
      	 
      	 
      
	
              7.13

            	
              Taxation
      of the Borrower

            	
              71

            
	 
      	 
      	 
      
	
              7.14

            	
              ERISA

            	
              71

            
	 
      	 
      	 
      
	
              7.15

            	
              Borrowing
      Base Mix

            	
              71

            
	 
      	 
      	 
      
	
              7.16

            	
              Financial
      Covenants

            	
              72

            
	 
      	 
      	 
      
	
              7.17

            	
              Accounting
      Changes

            	
              73

            
	 
      	 
      	 
      
	
              7.18

            	
              Management

            	
              73

            
	 
      	 
      	 
      
	
              7.19

            	
              Patriot
      Act Compliance

            	
              73

            
	 
      	 
      	 
      
	
              ARTICLE
      VIII

            	
              EVENTS
      OF DEFAULT

            	
              74

            
	 
      	 
      	 
      
	
              8.01

            	
              Event
      of Default

            	
              74

            
	 
      	 
      	 
      
	
              8.02

            	
              Remedies

            	
              77

            
	 
      	 
      	 
      
	
              8.03

            	
              Rights
      Not Exclusive

            	
              77

            
	 
      	 
      	 
      
	
              ARTICLE
      IX

            	
              THE
      AGENT

            	
              77

            
	 
      	 
      	 
      
	
              9.01

            	
              Appointment
      and Authorization

            	
              77

            

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	
              Page

            
	
              9.02

            	
              Delegation
      of Duties

            	
              77

            
	 
      	 
      	 
      
	
              9.03

            	
              Liability
      of Agent

            	
              78

            
	 
      	 
      	 
      
	
              9.04

            	
              Reliance
      by Agent

            	
              78

            
	 
      	 
      	 
      
	
              9.05

            	
              Notice
      of Default

            	
              79

            
	 
      	 
      	 
      
	
              9.06

            	
              Credit
      Decision

            	
              79

            
	 
      	 
      	 
      
	
              9.07

            	
              Indemnification

            	
              79

            
	 
      	 
      	 
      
	
              9.08

            	
              Agent
      in Individual Capacity

            	
              80

            
	 
      	 
      	 
      
	
              9.09

            	
              Successor
      Agents

            	
              80

            
	 
      	 
      	 
      
	
              9.10

            	
              Collateral
      Matters

            	
              81

            
	 
      	 
      	 
      
	
              ARTICLE
      X

            	
              MISCELLANEOUS

            	
              81

            
	 
      	 
      	 
      
	
              10.01

            	
              Amendments
      and Waivers

            	
              81

            
	 
      	 
      	 
      
	
              10.02

            	
              Notices

            	
              82

            
	 
      	 
      	 
      
	
              10.03

            	
              No
      Waiver; Cumulative Remedies

            	
              83

            
	 
      	 
      	 
      
	
              10.04

            	
              Costs
      and Expenses

            	
              83

            
	 
      	 
      	 
      
	
              10.05

            	
              Indemnity

            	
              83

            
	 
      	 
      	 
      
	
              10.06

            	
              Marshalling;
      Payments Set Aside

            	
              84

            
	 
      	 
      	 
      
	
              10.07

            	
              Successors
      and Assigns

            	
              84

            
	 
      	 
      	 
      
	
              10.08

            	
              Assignments,
      Participations, etc.

            	
              84

            
	 
      	 
      	 
      
	
              10.09

            	
              Setoff

            	
              86

            
	 
      	 
      	 
      
	
              10.10

            	
              Notification
      of Addresses, Lending Offices, Etc

            	
              86

            
	 
      	 
      	 
      
	
              10.11

            	
              Counterparts

            	
              86

            
	 
      	 
      	 
      
	
              10.12

            	
              Severability

            	
              86

            
	 
      	 
      	 
      
	
              10.13

            	
              No
      Third Parties Benefited

            	
              86

            
	 
      	 
      	 
      
	
              10.14

            	
              Time

            	
              87

            
	 
      	 
      	 
      
	
              10.15

            	
              Governing
      Law

            	
              87

            
	 
      	 
      	 
      
	
              10.16

            	
              Waiver
      of Jury Trial

            	
              87

            
	 
      	 
      	 
      
	
              10.17

            	
              [Reserved]

            	
              87

            
	 
      	 
      	 
      
	
              10.18

            	
              Notice
      of Claims; Claims Bar

            	
              87

            
	 
      	 
      	 
      
	
              10.19

            	
              Entire
      Agreement

            	
              87

            
	 
      	 
      	 
      
	
              10.20

            	
              Interpretation

            	
              88

            
	 
      	 
      	 
      
	
              10.21

            	
              Exculpation
      of Lenders

            	
              88

            
	 
      	 
      	 
      
	
              10.22

            	
              Relationship

            	
              88

            

    

     

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    SCHEDULES

    

    
      
        	
                Schedule

              	
                2.01

              	
                Commitments
      of the Lenders

              
	
                Schedule

              	
                2.16

              	
                Borrowing
      Base Properties and Initial Subsidiary Guarantees

              
	
                Schedule

              	
                5.05

              	
                Litigation

              
	
                Schedule

              	
                5.10

              	
                ERISA
      Disclosures

              
	
                Schedule

              	
                5.25

              	
                Leases

              

      

    

    

    EXHIBITS

     

    
      
        	
                Exhibit

              	
                A

              	
                Borrowing
      Notice

              
	
                Exhibit

              	
                B

              	
                Assignment
      of Leases and Rents

              
	
                Exhibit

              	
                C

              	
                Assignment
      of Contracts

              
	
                Exhibit

              	
                D

              	
                Environmental
      Indemnity Agreement

              
	
                Exhibit

              	
                E

              	
                Mortgage/Deed
      of Trust

              
	
                Exhibit

              	
                F

              	
                Note

              
	
                Exhibit

              	
                G

              	
                Subsidiary
      Guaranty

              
	
                Exhibit

              	
                H

              	
                Compliance
      Certificate

              
	
                Exhibit

              	
                I

              	
                Assignment
      and Acceptance

              
	
                Exhibit

              	
                J

              	
                Solvency
      Certificate

              

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    Exhibit A

     

    Borrowing
Notice

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      FORM OF
NOTICE OF BORROWING

       

      ____________,
20___

       

      Capital
One, N.A.

      275
Broadhollow Road

      Melville,
New York 11747

      Attention:
Jennifer Hussey

       

      Ladies
and Gentlemen:

       

      Reference
is made to that certain Credit Agreement dated as of July ____, 2010 (as
amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among American Realty Capital Operating Partnership,
L.P., a Delaware limited partnership (the “Borrower”), the
Lenders from time to time party thereto, and Capital One, N.A., a national
banking association, as Agent.

       

      .
Capitalized terms used herein, and not otherwise defined herein, have their
respective meanings given them in the Credit Agreement.

       

      
        	
                 
      

              	
                1.

              	
                Pursuant
      to Section 2.03 of the Credit Agreement, the Borrower hereby requests that
      the Lenders make Loans to the Borrower in an aggregate principal amount
      equal to $___________________.

              

      

       

      
        	
                 
      

              	
                2.

              	
                The
      Borrower requests that such Loans be made available to the Borrower on
      ____________, 20___.

              

      

       

      
        	
                 
      

              	
                3.

              	
                The
      proceeds of this borrowing of Loans will be used for purposes that are
      consistent with the terms of the Credit
  Agreement.

              

      

      

      The Borrower hereby
certifies to the Agent and the Lenders that as of the date hereof and as of the
date of the making of the requested Loans and after giving effect thereto, (a)
no Default or Event of Default exists or shall exist, and (b) the
representations and warranties made or deemed made by the REIT, the Borrower and
any Subsidiary Guarantor in the Loan Documents to which any of them is a party
are and shall be true and correct in all material respects, except to the
extent that such representations and warranties expressly relate solely to an
earlier date (in which case such representations and warranties shall have been
true and correct in all material respects on and as of such earlier date) and
except for changes in factual circumstances not prohibited under the Loan
Documents. In addition, the Borrower certifies to the Agent and the Lenders that
all conditions to the making of the requested Loans contained in Article IV of
the Credit Agreement will have been satisfied (or waived in accordance with the
applicable provisions of the Loan Documents) at the time such Loans are
made.

      
        
          
          

           

        

        
           

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Borrowing as of the date first written above.

       

      
        
          	 
      	
                  BORROWER

                
	 
      	 
      
	 
      	
                  AMERICAN
      REALTY CAPITAL OPERATING PARTNERSHIP, L.P.,

                
	 
      	
                  a
      Delaware limited partnership

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  AMERICAN
      REALTY CAPITAL TRUST INC., a Maryland corporation,

                
	 
      	
                   

                	
                  its
      general partner

                
	 
      	
                  By:

                	
                  _______________________________

                
	 
      	
                  Name:

                	 
      
	 
      	
                  Title:

                	 
      

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

     

    Exhibit B

     

    Assignment
of Leases and Rents

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Recording
Requested By And

      When
Recorded Mail To:

      

      Morrison
& Foerster, LLP

      1290
Avenue of the Americas

      New York,
New York 10104

      Attn:  Jeffrey
J. Temple, Esq.

      
         

          
            

          

        

      

      (Space
above this line for Recorder’s Use)

       

      ASSIGNMENT OF LEASES AND
RENTS

       

      1.           Assignment.  FOR
VALUE RECEIVED, [SUBSIDIARY GUARANTOR], a Delaware limited liability company
(“Owner”), with
an address at c/o American Realty Capital Trust Inc., 405 Park Avenue, 15th Floor,
New York, New York 10022, hereby assigns, sells, transfers and sets over to
CAPITAL ONE, N.A., a national banking association, with an address at 275
Broadhollow Road, Melville, New York, New York 11747, Attn: Commercial Real
Estate Banking, as agent for the lenders (“Agent”), all right,
title and interest of the landlord, whether now existing or hereafter acquired,
to and under the following:

       

      (a)           All
leases (including subleases), occupancy agreements, license and concession
agreements (collectively, together with the extensions, renewals, modifications,
replacements and guaranties referred to in paragraphs (b) and (c) below, called
the “Leases”)
now or hereafter covering all or any part of the real property (the “Property”) located in
[__________], which is more fully described in Exhibit A
attached hereto and incorporated herein by this reference;

       

      (b)           All
extensions, renewals, modifications or replacements of the Leases;

       

      (c)           Any
and all guaranties of the obligations of the lessees, occupants and licensees
under the Leases (hereinafter such lessees, occupants and licensees are referred
to collectively as the “lessees” and
individually as a “lessee”), whether now
existing or hereafter executed or granted, and all extensions and renewals of
said guaranties; and

       

      (d)           Any
rents (including, without limitation, any percentage or other rents based upon
the sales of a lessee), royalties, issues, profits, revenue, income, license
fees and other benefits at any time accruing by virtue of the Leases and all
proceeds thereof, including, without limitation, all revenues from the parking
of vehicles on the Property (hereinafter called the “Rents and
Profits”).

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      Capitalized
terms used but not defined herein shall have the meanings assigned to them in
that certain Credit Agreement dated as of July ___, 2010 by and between American
Realty Capital Operating Partnership, L.P., a Delaware limited partnership, the
lenders from time to time party thereto and Agent as agent (as it may from time
to time be amended or restated, the “Credit
Agreement”).

       

      2.           Purpose.  Owner’s
purpose in making this Assignment is to relinquish to Agent any and all rights
of Owner to collect and enjoy the Rents and Profits so as to facilitate the
satisfaction, in such order of priority as may be provided in the Credit
Agreement, of the obligations (the “Secured Obligations”)
secured by that certain Deed of Trust, Assignment of Leases and Rents, Security
Agreement and Fixture Filing (the “Deed of Trust”), of
substantially even date herewith, made by Owner, as trustor, in favor of Agent,
as beneficiary, which Deed of Trust encumbers the Property and is to be recorded
substantially concurrently with the recordation hereof.

       

      3.           License to
Collect.  The parties intend that this Assignment shall be a
present, absolute and unconditional assignment and shall, immediately upon
execution, give Agent the right to collect the Rents and Profits and to apply
them in payment of all sums payable by Owner under each of the Secured
Obligations as provided above.  However, Agent hereby grants to Owner
a license to collect, use and enjoy, subject to the provisions set forth below
and in the Deed of Trust, the Rents and Profits as they respectively become due
and to enforce the Leases, so long as no Event of Default has occurred and is
continuing.  In addition, Owner shall have those rights and
obligations with respect to the Leases as are set forth in the Deed of
Trust.  Nothing contained herein, nor any collection of the Rents and
Profits by Agent or by a receiver, shall be construed to make Agent a
“mortgagee-in-possession” of the Property so long as Agent has not itself
entered into actual possession of the Property.

       

      4.           Direction to each
Lessee.  Upon the occurrence and during the continuation of any
Event of Default, this Assignment shall constitute a direction to and full
authority to each lessee under any Lease and each guarantor of any Lease to pay
all Rents and Profits to Agent without proof of the default relied
upon.  Owner hereby irrevocably authorizes each lessee and guarantor
to rely upon and comply with any notice or demand by Agent for the payment to
Agent of any Rents and Profits due or to become due.

       

      5.           Representations and
Warranties.  Owner represents and warrants as to each Lease now
covering all or any part of the Property that, except as previously disclosed to
Agent in writing:

       

      (a)           such
Lease is in full force and effect;

       

      (b)           no
default exists on the part of Owner or, to the best knowledge of Owner, on the
part of the lessee thereunder;

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (c)           no
Rents and Profits (except for any security deposits or other amounts
specifically described in the Leases as in effect on the date hereof) have been
collected more than one month in advance;

       

      (d)           to
the best knowledge of Owner, no lessee under any Lease has any defense, setoff
or counterclaim against Owner;

       

      (e)           no
Lease or any interest therein is currently assigned or pledged to any Person
other than Agent; and

       

      (f)           all
Rents and Profits due to date under any Lease have been collected and, except as
expressly set forth in the Leases, no material concession has been granted to
any lessee in the form of a waiver, release, reduction, discount or other
alteration of the Rents and Profits due or to become due.

       

      6.           Agreements as to the
Leases.  Owner agrees with respect to each Lease:

       

      (a)           Security
Deposits.  If the Lease provides for a security deposit paid by
the lessee to Owner, this Assignment transfers to Agent all of Owner’s right,
title and interest in and to the security deposit; provided that Owner shall
have the right to retain said security deposit so long as no Event of Default
has occurred and is continuing; and provided further that Agent shall not have
any obligation to the lessee with respect to such security deposit except to the
extent that Agent comes into actual possession and control of said
deposit.

       

      (b)           Merger.  Each
Lease shall remain in full force and effect despite any merger of the interest
of Owner and any lessee thereunder, to the extent permitted under applicable
law.

       

      (c)           Collection before
Due.  Owner shall not collect any Rents and Profits more than
one (1) month in advance of the date on which they become due under the terms of
any Lease, other than in the ordinary course of business.

       

      (d)           Discounts.  Owner
shall not discount any future accruing Rents and Profits, other than in the
ordinary course of business.

       

      (e)           Further
Assignments.  Owner shall not execute any further assignment of
any of the Rents and Profits or any interest therein or suffer or permit any
such assignment to occur by operation of law.

       

      (f)         
  Subordination.  Owner
shall not request, consent to, agree to or accept a subordination of any Lease
to any mortgage, deed of trust or other encumbrance (except, with Agent’s
consent, those in favor of Agent), or any other lease or concession agreement,
now or hereafter affecting the Property or any part thereof, or permit
conversion of any Lease to a sublease.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (g)           Performance of
Obligations.  Owner shall faithfully perform and discharge all
of its material obligations under the Leases.  Owner shall appear in
and defend, at no cost to Agent, any action or proceeding arising under or in
any manner connected with any Lease.  If requested by Agent, following
any Event of Default and during the continuation thereof, Owner shall enforce
each Lease and all remedies available to Owner against the lessee in the case of
default under the Lease by the lessee.

       

      (h)           Future
Leases.  Upon request by Agent, Owner shall provide to Agent a
true and correct copy of each executed Lease as provided in the Credit
Agreement.  Any such Lease shall be deemed included in this
Assignment.

       

      (i) 
          Estoppel
Certificates.  Owner shall use good faith efforts to deliver to
Agent, promptly upon request, but in no event more frequently than once a year,
duly executed estoppel certificates from any one or more lessees as required by
Agent attesting to such facts regarding the Lease as Agent may reasonably
require, including, but not limited to, attestations that each Lease covered
thereby is in full force and effect with no defaults thereunder on the part of
any party, and that the lessee claims no defense or offset against the full and
timely performance of its obligations under the Lease.

       

      (j)  
         Indemnity.  Nothing
herein shall be construed to impose any liability or obligation on Agent under
or with respect to any Lease.  Owner shall defend, indemnify and hold
Agent harmless for, from and against any and all liabilities, losses, damages,
costs and expenses (including, without limitation, reasonable attorneys’ fees
and expenses) (collectively, “Liabilities”), which
Agent may incur under any Lease or by reason of this Assignment, but excluding
Liabilities resulting from gross negligence or willful misconduct, or solely
from negligence, by Agent, and of and from any and all claims and demands
whatsoever which may be asserted against Agent by reason of any alleged
obligations to be performed or discharged by Agent under any Lease or this
Assignment, but excluding Liabilities resulting from gross negligence or willful
misconduct, or solely from negligence, by Agent.  Should Agent incur
any liability, loss, damage, cost or expense covered hereby under any Lease or
by reason of this Assignment, but excluding Liabilities resulting from gross
negligence or willful misconduct, or solely from negligence, by Agent, Owner
shall reimburse Agent for the amount thereof pursuant to Section 7
below.  The indemnifications given by Owner hereunder include, without
limitation, indemnifications for Liabilities resulting from the negligence of
Agent.

       

      7.           Payment by
Owner.  Owner further agrees to reimburse Agent for any
reasonable cost or expense incurred by Agent to protect the interests of Agent
hereunder, within five (5) days after written demand for payment is given to
Owner by Agent.  Owner also agrees to reimburse Agent for all of
Agent’s other reasonable costs incurred hereunder for which Owner is obligated
to reimburse or indemnify Agent within thirty (30) days after written demand for
such reimbursement is given to Owner by Agent.  Any such sum shall
bear interest at the interest rate set forth in Section 2.10(c) of the Credit
Agreement until paid if it is not paid when due.

       

      8.           Rights of
Agent.  Owner hereby grants the following rights:

       

      (a)           Creditors of
Lessees.  Agent shall be deemed to be creditor of each lessee
in respect of any assignment for the benefit of creditors and any bankruptcy,
arrangement, reorganization, insolvency, dissolution, receivership or other
debtor-relief proceedings affecting such lessee (without obligation on the part
of Agent, however, to file timely claims in such proceedings or otherwise pursue
creditor’s rights therein).

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (b)           Protection of
Security.  Agent shall have the right (but not the obligation),
upon any Event of Default, so long as such Event of Default is continuing, to
take any action as Agent may deem necessary or appropriate to protect Agent’s
security, including, but not limited to, appearing in any action or proceeding
and performing any obligations of the lessor under any Lease, and Owner agrees
to pay all reasonable costs and expenses (including, without limitation,
reasonable attorneys’ fees) incurred by Agent in connection therewith, pursuant
to Section 7 above.

       

      (c)           Remedies.  Upon
any Event of Default, so long as such Event of Default is continuing, Agent
shall have the right to apply the Rents and Profits to charges for taxes,
insurance, improvements, maintenance and other items relating to the operation
of the Property.  Agent shall also have upon the occurrence of any
such Event of Default all other rights and remedies provided to Agent under any
of the Loan Documents, all rights and remedies of a secured creditor under the
Uniform Commercial Code, and all other rights and remedies otherwise available
at law or in equity or by statute.  However, neither the assignment
set forth above nor any other provision of the Deed of Trust shall impose upon
Agent any duty to produce any revenues, fees, rents, issues, profits, license
fees or benefits or cause Agent to (i) be responsible for performing any of the
obligations of the Owner under any Lease, or (ii) be responsible or liable for
any waste or for any dangerous or defective conditions of the Property, for
negligence in the management, upkeep, repair or control of the Property or any
other act or omission by any other person excluding, however, any such liability
incurred after Agent obtains possession of the Property to the extent arising
solely from Agent’s gross negligence or willful misconduct.

       

      9.           Supplement to Deed of
Trust.  This Assignment is intended to be supplementary to and
not in substitution for or in derogation of any assignment of leases, rents and
other property contained in the Deed of Trust or in any other
document.  Failure of Agent to avail itself of any terms, covenants or
conditions of this Assignment for any period of time or for any reason shall not
constitute a waiver thereof.

       

      10.         Continuation of
Terms.  Notwithstanding any future modification of the terms of
any of the Loan Documents, this Assignment and the rights and benefits hereby
assigned and granted shall continue in favor of Agent in accordance with the
terms of this Assignment.

       

      11.         Successors and
Assigns.  This Assignment shall be binding upon and inure to
the benefit of the permitted successors and assigns of the parties hereto under
the Credit Agreement and the other Loan Documents (including, without
limitation, in the case of Agent, any third parties now or hereafter acquiring
any interest in any of the Loan Documents, whether by virtue of assignment,
participation or otherwise).  The words “Owner,” “Agent,” “lessee” and
“guarantor,” wherever used herein, shall include the persons and entities named
or referred to herein or in any Lease, and designated as such and their
respective heirs, legal representatives, successors and assigns, provided that
any action taken by the Agent or any successor designated as such by an
instrument recorded in the Official Records of the county in which the Property
is located referring to this Assignment shall be sufficient for all purposes
notwithstanding that Agent may have theretofore assigned or participated any
interest in any of the Loan Documents to a third party.  All words and
phrases shall be taken to include the singular or plural number, and the
masculine, feminine or neuter gender, as may fit the case.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      12.         Modifications.  Any
change, amendment, modification, abridgement, cancellation, or discharge of this
Assignment or any term or provision hereof shall be invalid without the written
consent of Agent.

       

      13.         Release.  Upon
recordation of a recorded satisfaction or release of the Deed of Trust, this
Assignment shall be void and of no further effect, and thereupon Agent shall
execute and deliver to Owner any instruments which may be reasonably necessary
or appropriate to terminate this Assignment.

       

      14.         Notices.  All
notices hereunder shall be given in accordance with the Subsidiary
Guaranty.

       

      15.         Severability.  If
any provision hereof is determined to be illegal or unenforceable for any
reason, the remaining provisions hereof shall not be affected
thereby.

       

      16.         Governing
Law.  This Assignment and the rights and remedies of Agent as
provided herein shall be governed by and construed in accordance with the
internal laws of the State of New York, without regard to principles of
conflicts of law.

       

      17.         Intentionally
Omitted.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the undersigned Owner has executed this Assignment as of the
_____ day of July, 2010.

       

      
        
          	 
      	
                  OWNER:

                
	 
      	 
      
	 
      	
                  [SUBSIDIARY
      GUARANTOR]

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                
	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                  By:
      ____________________________

                
	 
      	 
      	 
      	
                  Name:
      __________________________

                
	 
      	 
      	 
      	
                  Title:
      ___________________________

                

        

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      Legal
Description

       

      All of
that certain real property together with all easements, rights and appurtenances
thereto, and all improvements now or hereafter located thereon, situated in the
City of __________, County of ___________ State of __________ and described as
follows:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          	
                  STATE
      OF _____________

                	
                  )

                
	 
      	
                  )

                
	
                  COUNTY
      OF ___________

                	
                  )

                

        

      

       

      BEFORE
ME, the undersigned authority, on this day personally appeared
______________________________________, the ______________________ of AMERICAN
REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership,
member of [each property owner], a Delaware limited liability company, known to
me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed, in the capacity therein stated, and as the act
and deed of said corporation, member of said limited liability company, and as
the act and deed of said limited liability company.

       

      Given
under my hand and seal this ____ day of ________, 2010.

      

      
        
          	 
      	 
      
	 
      	
                  Notary
      Public In and For

                
	 
      	
                  The
      State of _________

                

        

      

       

      
        
          
            
              	
                      Printed
      Name:

                    	 
      
	 	 
	
                      My
      Commission Expires:

                    	 
      

            

          

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

     

    Exhibit C

     

    Assignment
of Contracts

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      ASSIGNMENT OF WARRANTIES,
PERSONAL PROPERTY LEASES

      AND MANAGEMENT AND SERVICE
CONTRACTS

      

      1.           FOR
VALUE RECEIVED, [EACH SUBSIDIARY GUARANTOR], a Delaware limited liability
company (“Owner”), with an
address at c/o American Realty Capital Trust Inc., 405 Park Avenue, 15th Floor,
New York, New York 10022, hereby assigns, sells, transfers and sets over to
Capital One, N.A., a national banking association (“Agent”) (any
capitalized term not defined herein shall have the meaning set forth in that
certain Credit Agreement dated as of July ___, 2010 by and between American
Realty Capital Operating Partnership, L.P., a Delaware limited partnership, as
Borrower, the lenders from time to time party thereto (the “Lenders”) and the
Agent as agent for the Lenders (as amended, modified, supplemented, extended,
renewed or replaced from time to time, the “Credit Agreement”))
and grants to Agent (for the benefit of the Lenders) a security interest,
whether now existing or hereinafter acquired, in, all of Owner’s right, title
and interest in, to and under the following:

      

      (a)           To
the extent they are assignable or transferable, all warranties and guarantees
(the “Warranties and
Guarantees”), whether now existing or hereafter arising, relating to all
improvements (the “Improvements”) now or
hereafter located on that certain real property located in __________, which is
more particularly described in Exhibit A attached
hereto (the “Property”);

      

      (b)           All
leases, to the extent assignable, whether now existing or hereafter arising
(collectively, the “Personal Property
Leases”), of all tangible personal property owned by Owner and installed
in, affixed to, placed upon, or used or useful in connection with the Property
or the operation of the Improvements thereon and all replacements thereof,
additions thereto and substitutions therefor (collectively, the “Personal
Property”);

      

      (c)           Each
and every right of Owner to the payment of money, whether such right to payment
now exists or hereafter arises, which arises out of or relates to the Warranties
and Guarantees, the Improvements, the Property, the Personal Property Leases or
the Personal Property, whether such right to payment is or is not already earned
by performance, and howsoever such right to payment may be evidenced, together
with all other rights and interests which Owner may at any time have by law or
agreement against any account debtor or other obligor obligated to make any such
payment or against any of the property of such account debtor or other obligor,
including without limitation all accounts and general intangibles arising from
or relating to the Collateral (as herein defined);

      

      (d)           All
books and records pertaining to any and all of the Property described above,
including computer readable memory and any computer hardware or software
necessary to access and process such memory; and

      

      (e)           All
proceeds of, additions and accretions to, substitutions and replacements for,
and changes in any of the property described above.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      The Warranties and Guarantees, Personal
Property and Leases and all other items referred to in paragraphs (a) through
(e) above are referred to herein as the “Collateral.”

      

      2.           This
Assignment secures, in such order of priority as may be provided in the Credit
Agreement, each of the “Secured Obligations” (as such term is defined in the
Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture
Filing (the “Deed of
Trust”) dated as of the date hereof, executed by Owner, as trustor for
the benefit of Agent, as beneficiary relating to the Property.

      

      3.           Owner
acknowledges and agrees that Agent has not hereby assumed any of Owner’s
obligations or duties with respect to any of the Collateral.

      

      4.           Until
there shall have been an Event of Default, Owner shall be authorized to exercise
all rights and privileges relating to the Collateral.

      

      5.           Upon
request by Agent from time to time, Owner shall execute and deliver to Agent any
financing and continuation statements with respect to the Collateral in order to
perfect or continue the perfection of the security interests therein of
Agent.

      

      6.           Owner
hereby represents and warrants to Agent that:  (a) no assignment or
hypothecation of its rights under or with respect to any of the Collateral is
currently effective, and (b) Owner has provided Agent with true and accurate
copies of all Material (as hereinafter defined), Personal Property Leases and
Contracts existing as of the date hereof, including all amendments to
date.  As used herein, “Material” shall mean
any and all Personal Property Leases and Contracts
which:  (x) are not terminable by the Owner without cause upon
not more than thirty (30) days’ notice, or (y) require payments to any
party other than Owner in an aggregate amount greater than $20,000, or
(z) in any manner create rights which affect title to the Property,
including, without limitation, any grant to a party other than Owner of an
option or right of first refusal to purchase the Property.

      

      7.           To
protect the security of this Assignment, Owner agrees:

      

      (a)           Except
as permitted in the Credit Agreement with respect to the Property, not to
assign, sell or transfer, or pledge, mortgage or otherwise encumber in any
manner, Owner’s interest in and rights under and to any of the Collateral so
long as this Assignment remains in effect, without the prior written consent of
Agent.

      

      (b)           Faithfully
to abide by, perform and discharge in all material respects each and every
obligation of Owner with respect to the Collateral.

      

      (c)           At
Owner’s sole cost and expense, to appear in and defend any action or proceeding
arising under or connected with any of the Collateral or Owner’s obligations and
duties hereunder and to pay all reasonable costs and expenses of Agent including
reasonable attorneys’ fees and costs in any action or proceeding in which Agent
may be required to appear.  Upon the occurrence or during the
continuation of an Event of Default hereunder, Agent may, at its option, appear
in and prosecute in its own name, any action or proceeding to enforce any such
cause of action and may make any compromise or settlement
thereof.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (d)           Owner
(i) shall, at the request of Agent, promptly provide Agent with a copy of all
Warranties and Guaranties and all Personal Property Leases and Contracts entered
into subsequent to the date hereof and (ii) shall, upon request by Agent,
promptly provide Agent with notice of the termination, expiration or revocation
of same.

      

      (e)           The
acceptance of this Assignment shall not constitute a satisfaction of any of the
Secured Obligations or a waiver of any rights of Agent.  Nothing in
this Assignment shall be deemed to obligate Agent to undertake or perform any of
the terms or conditions applicable to any Collateral or to enforce compliance
therewith.  No waiver of any breach or default of Owner and no waiver
of any right of Agent hereunder shall be deemed to constitute a waiver of any
other or subsequent breach or default, or to prevent subsequent exercise of any
such right or any other similar right.

      

      8.           
Owner shall reimburse Agent for any reasonable cost or expense incurred by Agent
hereunder to protect the Collateral within (5) days after written demand for
payment is given to Owner by Agent and Owner shall reimburse Agent for all of
Agent’s other costs incurred hereunder within thirty (30) days after written
demand for such reimbursement is given to Owner by Agent.

      

      9.           
Agent shall have the right to enforce Owner’s rights with respect to any or all
of the Collateral.  Agent may, without affecting any of the rights or
remedies of Agent against Owner under any other Loan Documents, exercise on
behalf of Agent the rights of Agent under this Assignment as Owner’s
attorney-in-fact or in any other manner permitted by law, and in addition, Agent
shall have and possess any and all rights and remedies of a secured party under
the Uniform Commercial Code or as otherwise provided by law and may also elect
to cause the Collateral to be sold pursuant to the power of sale provided in the
Deed of Trust in accordance with the terms and provisions thereof.

      

      10.           Owner
hereby agrees to indemnify Agent against, and to hold Agent harmless for, from
and against any and all claims, demands, liabilities, losses, lawsuits,
judgments and costs and expenses (“Liabilities”)
(including, without limitation, reasonable attorneys’ fees and costs), which
Agent may incur after an Event of Default in exercising any of its rights under
this Assignment, including without limitation Liabilities resulting from the
negligence of Agent, but excluding Liabilities resulting from Agent’s gross
negligence or willful misconduct.

      

      11.           Upon
the reconveyance of the Deed of Trust encumbering the Property, this Assignment
shall become null and void, and thereupon Agent shall execute and deliver to
Owner any instruments which may be reasonably necessary or appropriate to
terminate this Assignment.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      12.           The
terms, covenants, agreements and conditions contained herein shall extend to,
include and inure to the benefit of and be binding upon the permitted successors
and assigns of the parties, and may not be terminated, changed or amended
orally.

      

      13.           This
Assignment shall be governed by and construed in accordance with the internal
laws of the State of New York, without regard to principles of conflicts of
law.

      

      IN WITNESS WHEREOF, Owner has caused
this Assignment to be executed as of the day indicated below.

      

      Dated:  July
___, 2010.

      

      
        
          	
                  OWNER:

                
	 
      
	
                  [SUBSIDIARY
      GUARANTOR]

                
	 
      
	
                  By:

                	
                  American
      Realty Capital Operating Partnership,

                  L.P,
      a Delaware limited partnership, its Member

                
	 
      	 
      
	 
      	
                  By:

                	
                  American
      Realty Capital Trust Inc., a

                  Maryland
      corporation, its General Partner

                
	 
      	 
      
	 
      	 
      	
                  By:

                	
                      

                
	 
      	 
      	
                  Name:

                	
                        

                
	 
      	 
      	
                  Title:

                	
                            

                

        

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      Description of the
Property

       

      All of that certain real property,
together with all easement, rights and appurtenances thereto, and all
improvements now or hereafter located thereon, situated in the City of
__________, County of __________, State of ___________, and described as
follows:

       

      
        
           

        

        
          Exhibit
A-1

          
            

          

        

        
           

        

      

     

    Exhibit D

     

    Environmental
Indemnity Agreement

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      ENVIRONMENTAL
INDEMNITY AGREEMENT

       

      This
Environmental Indemnity Agreement (this “Agreement”) is made
as of July ___, 2010, by AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a
Delaware limited partnership (“Company”), and [EACH
SUBSIDIARY GUARANTOR], a [Delaware limited liability company] (collectively,
“Indemnitor”)
in favor of (i) CAPITAL ONE, N.A., a national banking association, as Agent for
the Lenders (in such capacity, “Indemnitee”) under
that certain Credit Agreement, dated as of July ___, 2010 (as amended, modified,
supplemented, extended, renewed or replaced from time to time, the “Credit Agreement”),
among Company, as Borrower, the lenders from time to time party thereto (the
“Lenders”) and
Indemnitee, as Agent for the Lenders (“Agent”), and (ii) the
other Indemnified Parties (as hereinafter defined).  Capitalized terms
used but not defined herein shall have the meanings set forth in the Credit
Agreement.

       

      Factual
Background

       

      A.          Indemnitor
is executing this Agreement to induce the Lenders to make advances, from time to
time, of up to $30,000,000 in the aggregate under a revolving credit facility
(the “Facility”) pursuant
to the Credit Agreement.

       

      B.           The
Facility is evidenced by a promissory note issued to Agent (the “Note”), and is
secured by, among other things, deeds of trust or mortgages (the “Deeds of Trust”)
encumbering each of the Borrowing Base Properties identified on Exhibit A attached
hereto (collectively, the “Property”).

       

      C.           In
connection with obtaining the Deeds of Trust as security for the Facility, the
Lenders may potentially become subject to certain costs, risks and liabilities
with respect to the Property.  Among other things, the Lenders may
become subject to liabilities or alleged liabilities relating to environmental
conditions as an “owner” or “operator” under applicable environmental
law.  These costs and liabilities may arise before or after repayment
of the Facility, and before or after foreclosure under the Deeds of
Trust.  Because these costs and liabilities, if they occur, will be
the result of the Lenders’ agreement to make the Facility, and in consideration
of that agreement, Indemnitee, as Agent, and Indemnitor have agreed as set forth
below.

       

      I.           Definitions

       

      In
addition to any terms defined elsewhere in this Agreement, as used in this
Agreement:

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      1.1         “Hazardous Materials”
means (i) all those substances which are regulated by, or which may form the
basis of liability under, any Environmental Law, including all substances
identified under any Environmental Law as a pollutant, contaminant, hazardous
waste, hazardous constituent, special waste, hazardous substance, hazardous
material, or toxic substance, or petroleum or petroleum-derived substance or
waste, (ii) any other materials or pollutants that (a) pose a hazard to any
Property or to Persons on or about such Property or (b) or to Persons cause such
Property to be in violation of any Environmental Laws, (iii) asbestos in any
form which is or could become friable, urea formaldehyde foam insulation,
electrical equipment which contains any oil or dielectric fluid containing
levels of polychlorinated biphenyls in excess of fifty parts per million, and
(iv) any other chemical, material, substance, or waste, exposure to which is
prohibited, limited, or regulated by any Governmental Authority or may or could
pose a hazard to the health and safety of the owners, occupants, or any Persons
surrounding the relevant Property..

       

      1.2         “Indemnified Costs”
means all liabilities, claims, actions, causes of action, judgments, orders,
damages (including foreseeable and unforeseeable consequential damages), costs,
expenses, fines, penalties and losses (including sums paid in settlement of
claims and all consultant, expert and legal fees and expenses of Indemnitee’s
counsel), including those incurred in connection with any investigation of site
conditions or any clean-up, remedial, removal or restoration work (whether of
the Property or any other property), or any resulting damages, harm or injuries
to the person or property of any third parties or to any natural resources, and
including those Indemnified Costs which result from the joint or concurrent
negligence, or comparative negligence of such Indemnified Party or any other
Indemnified Party or are attributable to the strict liability or no fault
liability of such Indemnified Party or any other Indemnified Party (but
excluding any such Indemnified Costs which result from the gross negligence or
willful misconduct, or solely from the negligence, of such Indemnified Party or
any other Indemnified Party).

       

      1.3         “Indemnified Parties”
means and includes Indemnitee and each of the Lenders, their respective parents,
subsidiaries and affiliated companies, assignees of any of the Lenders’ interest
in the Facility or the Loan Documents, any successor under the Credit Agreement,
owners of participation or other interests in the Facility or the Loan
Documents, the Trustee or any substitute Trustee under the Deeds of Trust, any
purchasers of the Property at any foreclosure sale or from Indemnitee or any of
its affiliates, and the officers, directors, employees, attorneys and agents of
each of them.

       

      II.           Indemnity
Agreement

       

      2.1         Indemnity Regarding
Hazardous Materials.  Indemnitor indemnifies, defends and holds
the Indemnified Parties harmless for, from and against any and all Indemnified
Costs directly or indirectly arising out of or resulting from any Hazardous
Material being present or released in, on or around any part of the Property, or
in the soil, groundwater or soil vapor on or under the Property,
including:

       

      (a)           any
claim for such Indemnified Costs asserted by any federal, state or local
governmental agency, including the United States Environmental Protection Agency
and the Department of Health of any state in which the Property is located, and
including any claim that any Indemnified Party is liable for any such
Indemnified Costs as an “owner” or “operator” of the Property under any law
relating to Hazardous Materials; and

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (b)           any
such Indemnified Costs claimed against any Indemnified Party by any person other
than a governmental agency, including any person who may purchase or lease all
or any portion of the Property from Indemnitor, from any Indemnified Party, or
from any other purchaser or lessee; any person who may at any time have any
interest in all or any portion of the Property; any person who may at any time
be responsible for any clean-up costs or other Indemnified Costs relating to the
Property; and any person claiming to have been injured in any way as a result of
exposure to any Hazardous Material; and

       

      (c)           any
such Indemnified Costs which any Indemnified Party reasonably believes at any
time must be incurred to comply with any law, judgment, order, regulation or
regulatory directive relating to Hazardous Materials, or which any Indemnified
Party reasonably believes at any time must be incurred to protect the public
health or safety; and

       

      (d)           any
such Indemnified Costs resulting from currently existing conditions in, on or
around the Property, whether known or unknown by Indemnitor or the Indemnified
Parties at the time this Agreement is executed, and any such Indemnified Costs
resulting from the activities of Indemnitor, Indemnitor’s lessees, or any other
person in, on or around the Property.

       

      2.2         Indemnity Regarding
Construction and Other Risks.  Indemnitor indemnifies, defends
and holds the Indemnified Parties harmless for, from and against any and all
Indemnified Costs directly or indirectly arising out of or resulting from
construction of any improvements on the Property, including any defective
workmanship or materials; or any failure to satisfy any requirements of any
laws, regulations, ordinances, governmental policies or standards, reports,
subdivision maps or development agreements that apply or pertain to the
Property; or breach of any representation or warranty made or given by
Indemnitor to any of the Indemnified Parties or to any prospective or actual
buyer of all or any portion of the Property; or any claim or cause of action of
any kind by any party that any Indemnified Party is liable for any act or
omission of Indemnitor or any other person or entity in connection with the
ownership, sale, operation or development of the Property.

       

      2.3         Defense of Indemnified
Parties.  Upon demand by any Indemnified Party, Indemnitor
shall defend any investigation, action or proceeding involving any Indemnified
Costs which is brought or commenced against any Indemnified Party, whether alone
or together with Indemnitor or any other person, all at Indemnitor’s own cost
and by counsel to be approved by the Indemnified Party in the exercise of its
reasonable judgment.  In the alternative, any Indemnified Party may
elect to conduct its own defense at the expense of Indemnitor.

       

      2.4         Representation and Warranty
Regarding Hazardous Materials.  Except as otherwise expressly
set forth in the Environmental Reports, Indemnitor hereby represents and
warrants to, and covenants with, the Indemnified Parties, without regard to
whether any Indemnified Party has or hereafter obtains any knowledge or report
of the environmental condition of the Property, as follows:

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (a)           During
the period of Indemnitor’s ownership of the Property, the Property has not been
used for industrial or manufacturing purposes, for landfill, dumping or other
waste disposal activities or operations, for generation, storage, use, sale,
treatment, processing, recycling or disposal of any Hazardous Material, except
in compliance with applicable Environmental Laws, for underground or aboveground
storage tanks, or for any other use that could give rise to the release of any
Hazardous Material on the Property; to Indemnitor’s knowledge, no such use of
the Property occurred at any time prior to the period of Indemnitor’s ownership
of the Property;

      

      (b)           To
Indemnitor’s knowledge, there is no Hazardous Material (except for any Hazardous
Material the presence of which does not violate applicable Environmental Laws),
storage tank (or similar vessel) whether underground or otherwise, sump or well
currently on the Property;

      

      (c)           Indemnitor
has received no written notice and has no knowledge of any Environmental Claim
or any completed, pending or proposed or threatened investigation or inquiry
concerning the presence or release of any Hazardous Material on the Property or
concerning whether any condition, use or activity on the Property is in
violation of any Environmental Law or, based solely on written notice of same,
whether any such condition or event has occurred with respect to any adjacent
property to the Property;

      

      (d)           To
Indemnitor’s knowledge, the present conditions, uses and activities of and on
the Property do not violate any Environmental Law and the use of the Property
which the Indemnitor (and each lessee and sublessee, if any) makes and intends
to make of the Property complies and will comply with all applicable
Environmental Laws;

      

      (e)           The
Property does not appear on and to Indemnitor’s knowledge has never been on any
federal or state “superfund” or “superlien” list or any other list or database
of properties maintained by any local, state or federal agency or department
showing properties which are known to contain or which are suspected of
containing a Hazardous Material;

      

      (f)           To
Indemnitor’s knowledge, no action has been taken to designate the Property as a
hazardous waste property or border zone property or otherwise to restrict the
land use of the Property (including through a moratorium on new land uses), nor
does Indemnitor know of any basis for such designation or other
restriction;

      

      (g)           Indemnitor
has never applied for and been denied environmental impairment liability
insurance coverage relating to the Property; and

      

      (h)           Indemnitor,
and to Indemnitor’s knowledge no lessee or sublessee, has obtained or is
required to obtain any permit or authorization to construct, occupy, operate,
use or conduct any activity on the Property by reason of any Environmental
Law.

       

      2.5         Compliance Regarding
Hazardous Materials.  Indemnitor has complied, and shall comply
and cause all lessees and any other persons who may come upon the Property to
comply, with all laws, regulations and ordinances governing or applicable to
Hazardous Materials, including those requiring disclosures to prospective and
actual buyers of all or any portion of the Property.  Indemnitor also
has complied and shall comply with the recommendations of any qualified
environmental engineer or other expert which apply or pertain to the
Property.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      2.6         Notices Regarding Hazardous
Materials.  Indemnitor shall promptly deliver to Indemnitee
copies of each report pertaining to the Property or to Indemnitor prepared by or
on behalf of Indemnitor pursuant to any Environmental Law.  Indemnitor
shall promptly notify Indemnitee if it knows, suspects or believes there may be,
in violation of any applicable Environmental Law, any Hazardous Material in or
around the Property, or in the soil, groundwater or soil vapor on or under the
Property, or that Indemnitor or the Property may be subject to any threatened or
pending investigation by any governmental agency under any law, regulation or
ordinance pertaining to any Hazardous Material, and shall fully describe in
writing the nature and extent of the Hazardous Material and/or Environmental
Claim and all relevant circumstances.

       

      2.7         Remedial
Actions.

      

      (a)           If
any Hazardous Material the presence of which violates any applicable
Environmental Law is discovered on the Property at any time and regardless of
the cause, Indemnitor shall promptly at Indemnitor’s sole risk and expense and
solely under the name of Indemnitor:  (i) remove, treat, and
dispose of the Hazardous Material in compliance with all applicable
Environmental Laws, or if such removal is prohibited by any Environmental Law,
take whatever action as is required by any Environmental Law; and (ii) take
such other action as is necessary to have the full use and benefit of the
Property as contemplated by the Loan Documents.  Indemnitor at its
sole expense shall provide Indemnitee with satisfactory evidence of the actions
taken as required in this clause (a).  Indemnitor shall provide to
Indemnitee for the ratable benefit of itself and the Lenders within thirty (30)
Business Days of Indemnitee’s reasonable request a bond, letter of credit or
other financial assurance evidencing to Indemnitee’s satisfaction, in
Indemnitee’s reasonable discretion, that all necessary funds are readily
available to pay the costs and expenses of the actions required by this clause
(a) and to discharge any assessments or liens established against the Property
as a result of the presence of the Hazardous Material on the
Property.

      

      (b)           All
remedial actions shall be conducted (i) in a diligent and timely fashion by
licensed contractors acting to the extent appropriate under the supervision of a
consultant or consulting environmental engineer, and (ii) in accordance with all
Environmental Laws and all other applicable governmental
requirements.  The selection of the contractors and consultant or
consulting environmental engineer for the remedial actions, the contracts
entered into with such parties, any disclosures to or agreements with any public
or private agencies or parties relating to the remedial actions and any written
plan for the remedial actions (and any changes thereto) shall each, at the
option of Indemnitee, be subject to the prior written approval of Indemnitee,
which approval shall not be unreasonably withheld or delayed.  Within
fifteen (15) Business Days after completion of such remedial actions, Indemnitor
shall obtain and deliver to Indemnitee a report pertaining to the affected
Property made after such completion which shall confirm to Indemnitee’s
satisfaction that all required remedial action as stated above has been taken
and successfully completed and that there is no evidence or suspicion of any
contamination or risk of contamination on the Property or any adjacent property
or of violation of any Environmental Law with respect to any such Hazardous
Material.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      (c)           After
the occurrence and during the continuance of an Event of Default, Indemnitee on
behalf of itself and/or the Lenders may, but shall never be obligated to, remove
or cause the removal of any Hazardous Material from the Property (or if removal
is prohibited by any Environmental Law, take or cause the taking of such other
action as is required by any Environmental Law) if Indemnitor fails to promptly
commence such remedial actions following discovery and thereafter diligently
prosecute the same to the satisfaction of Indemnitee (without limitation of any
rights of Indemnitee and the Lenders to declare an Event of Default under any of
the Loan Documents and to exercise all rights and remedies available by reason
thereof).

       

      2.8         Site Visits, Observations
and Testing.  The Indemnified Parties and their agents and
representatives shall have the right at any reasonable time to enter, upon prior
written notice and, if any such entry would subject Indemnitor to any laws
requiring prior notice to lessees or other occupants of said Property, in a
manner that would reasonably enable Indemnitor to provide such notice in
conformance with any such law, and visit the Property for the purposes of
observing the Property, and if the Indemnified Parties reasonably believe that
the Property may violate applicable Environmental Laws, for the purposes of
taking and removing soil or groundwater samples, and conducting tests on any
part of the Property.  The Indemnified Parties have no duty, however,
to visit or observe the Property or to conduct tests, and no site visit,
observation or testing by any Indemnified Party shall impose any liability on
any Indemnified Party.  In no event shall any site visit, observation
or testing by any Indemnified Party be a representation that Hazardous Materials
are or are not present in, on or under the Property, or that there has been or
shall be compliance with any law, regulation or ordinance pertaining to
Hazardous Materials or any other applicable governmental law.  Neither
Indemnitor nor any other party is entitled to rely on any site visit,
observation or testing by any Indemnified Party.  The Indemnified
Parties owe no duty of care to protect Indemnitor or any other party against, or
to inform Indemnitor or any other party of, any Hazardous Materials or any other
adverse condition affecting the Property.  Any Indemnified Party shall
give Indemnitor reasonable notice before entering the Property.  The
Indemnified Party shall make reasonable efforts to avoid interfering with any
third party’s use of the Property in exercising any rights provided in this
Section.

       

      2.9         Costs and
Expenses.  Indemnitor agrees to pay all costs and expenses,
including reasonable attorneys’ fees, which may be incurred by any Indemnified
Party in any effort to enforce any term of this Agreement, including all such
costs and expenses which may be incurred by any Indemnified Party in any legal
action, reference or arbitration proceeding.  From the time(s)
incurred until paid in full to the Indemnified Party, those sums shall bear
interest at the rate of interest for Base Rate Loans.

       

      III.         General
Provisions

       

      3.1         Reservation of Other Rights
and Remedies.  Nothing in this Agreement shall be construed to
limit any claim or right which any Indemnified Party may otherwise have at any
time against Indemnitor or any other person arising from any source other than
this Agreement, including any claim for fraud, misrepresentation, waste or
breach of contract other than this Agreement, and any rights of contribution or
indemnity under federal or state Environmental Law or other applicable law,
regulation or ordinance.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      3.2         Delay; Cumulative
Remedies.  If any Indemnified Party delays in exercising or
fails to exercise any right or remedy against Indemnitor, that alone shall not
be construed as a waiver of such right or remedy.  All remedies of any
Indemnified Party against Indemnitor are cumulative.

       

      3.3         Rules of
Construction.  In this Agreement, the word “person” includes
any individual, company, trust or other legal entity of any kind.  If
this Agreement is executed by more than one person, the word “Indemnitor”
includes all such persons.  The word “include(s)” means “include(s),
without limitation,” and the word “including” means “including, but not limited
to.”  When the context and construction so require, all words used in
the singular shall be deemed to have been used in the plural and vice
versa.  All headings appearing in this Agreement are for convenience
only and shall be disregarded in construing this Agreement.

       

      3.4         [Intentionally
Omitted.]

       

      3.5         Severability.  Every
provision of this Agreement is intended to be severable.  In the event
any term, provision, section or subsection of this Agreement is declared to be
illegal or invalid, for any reason whatsoever, by a court of competent
jurisdiction, such illegality or invalidity shall not affect the other terms,
provisions, sections or subsections of this Agreement, which shall remain
binding and enforceable.

       

      3.6         [Reserved].

       

      3.7         Integration;
Modifications.  The Loan Documents, including this Agreement,
(a) integrate all the terms and conditions mentioned in or incidental to
this Agreement, (b) supersede all oral negotiations and prior writings with
respect to their subject matter, and (c) are intended by the parties as the
final expression of the agreement with respect to the terms and conditions set
forth in the Loan Documents and as the complete and exclusive statement of the
agreed terms.  No representation, understanding, promise or condition
shall be enforceable against any party unless it is contained in the Loan
Documents.  This Agreement may not be modified except in a writing
signed by both Indemnitee and Indemnitor.

       

      3.8         Heirs, Successors and
Assigns; Participations.  The provisions of this Agreement
shall bind and benefit the heirs, executors, administrators, legal
representatives, successors and assigns of Indemnitor and the Indemnified
Parties; provided, however, that Indemnitor may not assign this Agreement, or
assign or delegate any of its rights or obligations under this Agreement,
without the prior written consent of Indemnitee.  Each Lender in its
sole discretion may sell or assign participations or other interests in the
Facility and this Agreement, in whole or in part, all without notice to or the
consent of Indemnitor and without affecting Indemnitor’s obligations under this
Agreement.  Also without notice to or the consent of Indemnitor, each
Lender may disclose any and all information in its possession concerning
Indemnitor or this Agreement to any actual or prospective purchaser of any
securities issued or to be issued by such Lender, and to any actual or
prospective purchaser or assignee of any participation or other interest in the
Facility and this Agreement.

      
        
           

        

        
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      3.9         Notices.  All
notices given under this Agreement shall be in writing and shall be given by
personal delivery, overnight receipted courier (such as Federal Express), or by
registered or certified United States mail, postage prepaid, sent to each party
at its address set forth in the Credit Agreement and the Subsidiary
Guaranty.  Notices shall be effective upon receipt or when proper
delivery is refused.  Addresses for notice may be changed by either
party by notice to each other party in accordance with this
Section 3.9.

       

      3.10       Miscellaneous.  The
liability of all persons who are in any manner obligated under this Agreement
shall be joint and several.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

      

      
        [REMAINDER
OF PAGE LEFT BLANK.

      

      
        SIGNATURES
APPEAR ON FOLLOWING PAGE.]

      

      
        
           

        

        
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                  INDEMNITOR:

                
	 
      
	
                  AMERICAN
      REALTY CAPITAL OPERATING PARTNERSHIP, L.P.,

                
	
                  a
      Delaware limited partnership

                
	 
      	 
      	 
      	 
      
	
                  By:

                	
                  AMERICAN
      REALTY CAPITAL TRUST INC.,

                
	
                  a
      Maryland corporation, its general partner

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                    

                
	 
      	 
      	
                  Its:

                	
                    

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                    

                
	 
      	 
      	
                  Its:

                	
                    

                

        

      

      

      
        
          	
                  [EACH
      SUBSIDIARY GUARANTOR]

                
	 
      	 
      	 
      	 
      
	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                    

                
	 
      	 
      	
                  Name:

                	
                    

                
	 
      	 
      	
                  Title:

                	
                    

                

        

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      Description of the
Property

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    Exhibit E

     

    Mortgage/Deed
of Trust

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Recording
Requested By And

      When
Recorded Mail To:

      

      Morrison
& Foerster, LLP

      1290
Avenue of the Americas

      New York,
New York 10104

      Attn:  Jeffrey
J. Temple, Esq.

       

      

      
        
          
(Space
above this line for Recorder’s Use)

      

       

      (Attention
County Clerk:  This instrument covers goods that are or will be
fixtures on the real property described herein.  It is to be recorded
as a real estate mortgage and indexed as both a real estate mortgage and a
fixture financing statement.)

       

      DEED OF
TRUST, ASSIGNMENT OF LEASES

      AND RENTS, SECURITY
AGREEMENT AND FIXTURE FILING

       

      THIS DEED
OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING
(this “Deed of
Trust”) is made as of the ___ day of July, 2010, by [SUBSIDIARY
GUARANTOR], a Delaware limited liability company (herein, “Trustor”), the owner
of the real property described hereinbelow, whose address is c/o American Realty
Capital Trust Inc., 405 Park Avenue, 15th Floor,
New York, New York 10022, to [individual as trustee], whose address is
[__________] (herein, “Trustee”), for the
benefit of CAPITAL ONE, N.A., a national banking association, whose address is
275 Broadhollow Road, Melville, New York, New York 11747, Attn: Commercial Real
Estate Banking, as beneficiary (herein, “Beneficiary”).

       

      WHEREAS,
pursuant to the terms of that certain Credit Agreement, dated as of the date
hereof, by and among American Realty Capital Operating Partnership, L.P., a
Delaware limited partnership (the “Borrower”), the
lenders from time to time party thereto (the “Lenders”) and the
Beneficiary as Agent (as amended, modified, supplemented, extended, renewed or
replaced from time to time, the “Credit Agreement”),
the Lenders have agreed to make available to Borrower a revolving line of credit
in the maximum principal amount of $30,000,000 (collectively, the “Facility”).  The
indebtedness of Borrower under the Facility shall bear interest at the variable
rate or rates set forth in the Credit Agreement and shall be evidenced by the
Note.  Capitalized terms used but not defined herein shall have the
meanings set forth in the Credit Agreement.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      WHEREAS,
Trustor is a Subsidiary of Borrower and is a guarantor under that certain
Subsidiary Guaranty dated as of the date hereof (the “Subsidiary
Guaranty”), which Subsidiary Guaranty guarantees the obligations of the
Borrower under the Credit Agreement.

       

      WHEREAS,
Trustor is the owner of real property that is intended by the Borrower to
qualify as a Borrowing Base Property, and Trustor is required by the Credit
Agreement to execute and deliver this Deed of Trust as security for the Secured
Obligations (as defined herein), which Trustor is willing to do in consideration
of the agreement of the Lenders to make the Facility available to Borrower
pursuant to the terms of the Credit Agreement.

       

      WHEREAS,
Trustor will receive substantial direct and indirect benefits from the making of
the Loan for the account of the Borrower pursuant to the Credit Agreement (which
benefits are hereby acknowledged by Trustor).

       

      WITNESSETH:

       

      In
consideration of the foregoing, Trustor hereby irrevocably grants, mortgages,
conveys, bargains, sells, transfers and assigns to Trustee, its successors and
assigns, in trust, for the use and benefit of the Beneficiary with power of sale
and right of entry and possession as provided below, all of the following
described property, and any future estate, right, title and interest of Trustor
with respect thereto (herein, all of the property described in clauses (A)
through (N) below is referred to as the “Mortgaged
Property”):

       

      (A)           The
real property (herein, the “Land”) located in
__________, which is more fully described in Exhibit A
attached hereto and incorporated herein by this reference, and all minerals,
oil, gas and other hydrocarbon substances on the property, as well as all
development rights, air rights, water, water rights, and water stock relating to
the Land.

       

      (B)           All
present and future structures, buildings and improvements of any kind on the
Land; all fixtures, machinery, equipment, building materials, appliances and
goods of every nature whatsoever now or hereafter located in, or on, or attached
or affixed to, or used or intended to be used in connection with, the Land,
including, but not limited to, all heating, lighting, laundry, incinerating,
gas, electric and power equipment, engines, pipes, pumps, tanks, motors,
conduits, switchboards, plumbing, lifting, cleaning, fire prevention, fire
extinguishing, refrigerating, ventilating, and communications apparatus, air
cooling and air conditioning apparatus, elevators and escalators and related
machinery and equipment, shades, awnings, blinds, curtains, drapes, attached
floor coverings, including rugs and carpeting, television, radio and music cable
antennae and systems, screens, storm doors and windows, stoves, refrigerators,
dishwashers and other installed appliances, attached cabinets, partitions, ducts
and compressors, and trees, plants and other items of landscaping; all supplies,
equipment, furniture, furnishings and apparatus used in the operation of the
project on the Land, including, but not limited to, if any, communication
systems, and visual and electronic surveillance systems; all swimming pool
heaters and equipment, recreational equipment and maintenance supplies used in
connection with the Land; all of the foregoing of which, including replacements
and additions thereto, shall, to the fullest extent permitted by law and for the
purposes of this Deed of Trust, be deemed to be part and parcel of, and
appropriated to the use of, the Land and, whether affixed or annexed thereto or
not, and to the extent permitted by law, be deemed conclusively to be real
property and conveyed by this Deed of Trust, and Trustor agrees to execute and
deliver, from time to time, such further instruments and documents as may be
required by Beneficiary to confirm the lien of this Deed of Trust on any of the
foregoing (herein, the “Improvements”).

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (C)           All
appurtenances of the Land and all rights of Trustor in and to any streets, roads
or public places, easements or rights of way, relating to or affording ingress
and egress to the Land.

       

      (D)           All
public and private utility connections to the Land or the Improvements, and all
wastewater capacity reservations and similar rights and reservations of any kind
or character covering the Land or the Improvements issued or which may be issued
by any governmental agencies having jurisdiction thereof, and all other rights
relating to sewage treatment capacity, water capacity and utilities serving the
Land or the Improvements.

       

      (E)           All
existing and future leases, subleases, subtenancies, licenses, occupancy
agreements and concessions (herein, the “Leases”) relating to
the use and enjoyment of all or any part of the Land and the Improvements, and
any and all guaranties and other agreements relating to or made in connection
with any of such Leases, which, together with the Rents and Profits (as defined
below), are absolutely, presently and unconditionally assigned to Beneficiary
pursuant to Section 1.06 below.

       

      (F)           All
proceeds, including all claims to and demands for them, of the voluntary or
involuntary conversion of any of the Land, the Improvements or the other
property described above into cash or liquidated claims, including proceeds of
all present and future fire, hazard or casualty insurance policies and all
condemnation awards or payments now or later to be made by any public body or
decree by any court of competent jurisdiction for any taking or in connection
with any condemnation or eminent domain proceeding, and all causes of action and
their proceeds for any damage or injury to the Land, the Improvements or the
other property described above or any part of them, or breach of warranty in
connection with the construction of the Improvements, including causes of action
arising in tort, contract, fraud or concealment of a material fact (all of the
foregoing, collectively, “Proceeds”).

       

      Trustor
also hereby grants to Beneficiary a security interest in all of the following
described property, whether now or hereafter existing, and in which Trustor now
has or hereafter obtains any right, title, estate or interest:

       

      (G)           All
existing and future goods located on the Land which are now or in the future
owned by Trustor and used in the operation or occupancy of the Land or in any
construction on the Land, but which are not effectively made real property under
Clause (B) above, including, but not limited to, all appliances, furniture and
furnishings, building service equipment, and building materials, supplies and
equipment.

       

      (H)           All
deposit accounts of Trustor which are maintained with
Beneficiary.  Beneficiary shall hold such security interest and lien
pursuant to the Uniform Commercial Code of the state where such account is
located and shall be entitled to all rights, powers and remedies of a secured
party thereunder and otherwise available at law or in equity with respect
thereto.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (I) 
          All general
intangibles relating to the development or use or operation of the Land,
including, but not limited to, all governmental licenses, permits, variances,
approvals and authorizations relating to construction on the Land or relating to
the approval or use or operation of the project on the Land, all contracts,
contract rights, agreements, commissions, undertakings and arrangements relating
to the use or operation of the project on the Land (including, without
limitation, all property development, management, maintenance, repair or other
service contracts relating to the Land and the Improvements and the purchase and
sale agreement pursuant to which Trustor acquired the Land and the
Improvements), all names under or by which the Land or any of the Improvements
may at any time be operated or known and all rights to carry on business under
any such names or any variant thereof, and all trademarks and goodwill in any
way relating to the Land.

       

      (J)  
         All plans and
specifications prepared for construction of the Land and the Improvements or
operations to be conducted on the Land and all studies, data and drawings
related thereto; and also all contracts and agreements of Trustor relating to
the aforesaid plans and specifications or to the aforesaid studies, data and
drawings, or to the Land and the Improvements.

       

      (K)           All
water stock relating to the Land, all shares of stock or other evidence of
ownership of any part of the Land that is owned by Trustor in common with
others, and all documents of membership in any owners’ or members’ association
or similar group having responsibility for managing or operating any part of the
Land.

       

      (L)           All
reserves, deferred payments, deposits, refunds, cost savings, accounts, accounts
receivable and payments of any kind relating to the construction or operations
on the Land, and all present and future accounts and other rights of Trustor to
the payment of money, no matter how evidenced, which arise from the use or
operation of the Land and all writings evidencing such accounts and other
rights.

       

      (M)           All
books and records pertaining to any and all of the property described above,
including computer-readable memory and any computer hardware or software
necessary to access and process such memory.

       

      (N)           All
proceeds of, additions and accretions to, substitutions and replacements for,
and changes in any of the property described above.

       

      TO HAVE
AND TO HOLD the Mortgaged Property, unto Trustee, forever, to secure the payment
of the indebtedness and performance of the obligations described below, and
Trustor does hereby bind Trustor and Trustor’s heirs, personal representatives,
successors and assigns, to warrant and forever defend the Mortgaged Property
unto Trustee, forever, against the claim or claims of all persons whomsoever
claiming or to claim the same, or any part thereof.

       

      FOR THE
PURPOSE OF SECURING, in such order of priority as may be set forth in the Credit
Agreement, the following (collectively, the “Secured
Obligations”):

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (a)           The
Subsidiary Guaranty under which Trustor guarantees to Agent and the Secured
Parties, on the terms and conditions, and subject to the limitations, set forth
therein, all advances to, and debts, liabilities and obligations of, Borrower
arising under the Credit Agreement, the Note and the other Loan Documents or
otherwise with respect to the Facility;

       

      (b)           The
payment and performance of Trustor’s indebtedness and obligations under this
Deed of Trust;

       

      (d)           The
payment of all sums which may be advanced by or otherwise be due to Trustee or
Beneficiary under any provision of this Deed of Trust or to protect the security
of this Deed of Trust, with interest thereon at the rate provided
herein;

       

      (e)           The
payment and performance of Trustor’s indebtedness and obligations under the Loan
Documents to which it is a party; and

       

      (f)           The
payment of the principal of and interest on all future advances made by
Beneficiary to or for the account of Borrower pursuant to the Facility (herein,
the “Future
Advances”).

       

      The
Credit Agreement evidences a revolving credit facility and there may be
repayment and disbursements of principal from time to time.  It is
expressly agreed that the outstanding principal balance under the Facility may,
from time to time, be reduced to a zero balance without such repayment operating
to extinguish the lien, security title and security interest created by this
Deed of Trust.  This Deed of Trust shall remain in full force and
effect as to any subsequent Future Advances after such zero balance without loss
of priority until the Secured Obligations are paid in full and satisfied and all
agreements between Borrower and Beneficiary for further advances have been
terminated and this Deed of Trust is reconveyed.  Trustor waives the
operation of any applicable statute, law, or regulation having a contrary
effect.

      
        
           

        

        
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      ARTICLE
I

       

      COVENANTS
OF TRUSTOR

       

      To
Protect The Security Of This Deed Of Trust, Trustor Covenants And Agrees As
Follows:

       

      1.01           Performance of Secured
Obligations.  Trustor shall promptly pay and perform the
Secured Obligations in accordance with their terms.  Except as
otherwise expressly provided in any of the Loan Documents, all sums so payable
by Trustor shall be paid without demand, counterclaim, offset, deduction or
defense.  Trustor waives all rights now or hereinafter conferred by
statute or otherwise to any such demand, counterclaim, offset, deduction or
defense.

       

      1.02           Insurance.  [SUBJECT
TO REVIEW BY LENDER AND BORROWER’S INSURANCE CARRIER]  [Trustor shall
keep the Mortgaged Property insured with an all-risk policy insuring against
loss or damage by fire with extended coverage and against any other risks or
hazards which, in the opinion of Beneficiary should be insured against, in an
amount not less than the full insurable value thereof on a replacement cost
basis, with an inflation guard endorsement, with a company or companies and in
such form and with such endorsements as may be approved or required by
Beneficiary, including, if applicable, boiler explosion coverage and sprinkler
leakage coverage.  Upon written request from Beneficiary, Trustor
shall provide earthquake insurance with such companies as Beneficiary may
reasonably approve, in such an amount and form as Beneficiary may
require.  All losses under said insurance shall be payable to
Beneficiary and shall be applied in the manner provided in Section 1.03
hereof.  Trustor shall also carry commercial general liability
insurance and twelve (12) months’ business interruption insurance in such form
and amounts and with such companies as are satisfactory to
Beneficiary.  Trustor shall also carry insurance against flood if
required by the Federal Flood Disaster Protection Act of 1973 and regulations
issued thereunder.  All hazard, flood and other all-risk and business
interruption insurance policies shall be endorsed with a standard
noncontributory mortgagee clause in favor of and in form acceptable to
Beneficiary, and may be cancelled or modified only upon not less than ten (10)
Business Days’ prior written notice to Beneficiary, and all commercial general
liability insurance policies may be cancelled or modified only upon not less
than thirty (30) Business Days’ prior written notice to
Beneficiary.  If the zoning, building or other land use laws or
ordinances governing the Mortgaged Property do not permit the rebuilding or
restoration of all of the Mortgaged Property in the event of damage or
destruction, then the above-mentioned insurance policy shall also contain, in
addition to the requirements in the preceding sentences, a Contingent Liability
from Operation of Building Laws Endorsement or such other endorsements which
insure against loss occasioned by the enforcement of any state or municipal law
or ordinance regulating the construction or repair of the Mortgaged Property and
in force at the time such loss occurs, which necessitates the demolition of any
portion of the Mortgaged Property not damaged by the peril(s) insured against,
together with a Demolition Cost Endorsement or such other endorsement which
covers the actual cost of demolishing such undamaged portion of the Mortgaged
Property and clearing the site thereof.  All of the above-mentioned
insurance policies or certificates of such insurance satisfactory to
Beneficiary, in its reasonable discretion, together with receipts for the
payment of premiums thereon, shall be delivered to and held by Beneficiary,
which delivery shall constitute assignment to Beneficiary of all return premiums
to be held as additional security hereunder.  All renewal and
replacement policies shall be delivered to Beneficiary at least ten (10)
Business Days before the expiration of the expiring
policies.  Beneficiary shall not by the fact of approving,
disapproving, accepting, preventing, obtaining or failing to obtain any
insurance, incur any liability for or with respect to the amount of insurance
carried, the form or legal sufficiency of insurance contracts, solvency of
insurance companies, or payment or defense of lawsuits, and Trustor hereby
expressly assumes full responsibility therefor and all liability, if any, with
respect thereto.  All insurance required by this Section 1.02 shall
name the Beneficiary as additional insured (in the case of liability insurance)
or loss payee (in the case of hazard insurance)]

      
        
           

        

        
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      1.03        Condemnation and Insurance
Proceeds.

       

      (a)           All
Proceeds are hereby assigned to and shall be paid to Beneficiary for application
in the manner described in paragraph (b) hereinbelow.  Beneficiary may
at its option appear in and prosecute in its own name any action or proceeding
to enforce any cause of action which may give rise to Proceeds and may make any
compromise or settlement thereof.  Trustor, immediately upon obtaining
knowledge of the institution of any proceedings relating to condemnation or
other taking of the Mortgaged Property or any portion thereof, or knowledge of
any casualty damage to the Mortgaged Property, will immediately notify
Beneficiary in writing.  Beneficiary may participate in any such
proceedings and may join Trustor in adjusting any loss covered by
insurance.

       

      (b)           All
Proceeds, which Trustor may receive or to which Trustor may become entitled with
respect to the Mortgaged Property or any part thereof shall be paid over to
Beneficiary and shall be applied first toward reimbursement of all costs and
expenses of Beneficiary in connection with recovery of the same, and then shall
be applied, in the sole and absolute discretion of Beneficiary and without
regard to the adequacy of the security hereunder, to the payment or prepayment
(without premium) of any indebtedness secured hereby in such order as may be
provided in the Credit Agreement or as Beneficiary may determine, or to the
reimbursement of Trustor for expenses incurred by it in the restoration of the
Mortgaged Property.  Any application of such amounts or any portion
thereof to any indebtedness secured hereby shall not be construed to cure or
waive any default or notice of default hereunder or invalidate any act done
pursuant to any such default or notice.  In the event Beneficiary
elects to make any Proceeds available to Trustor to restore the Mortgaged
Property, Trustor shall proceed forthwith with the completion of construction of
the Improvements, including the necessary work of restoration in accordance with
plans, specifications and drawings submitted to and approved by Beneficiary, and
any monies which Beneficiary so elects to make available for restoration shall
be disbursed in accordance with standard construction lending practice or in any
other manner approved by Beneficiary.  Notwithstanding the foregoing,
provided no Event of Default has occurred and is continuing, in the event of any
casualty in which the cost of restoration is reasonably expected to be less than
$200,000, Beneficiary shall make the Proceeds available to Trustor for the
purposes of restoring the Mortgaged Property.

      
        
           

        

        
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      1.04        Taxes, Liens and Other
Items.  Trustor shall pay, prior to delinquency, all taxes,
bonds, assessments, fees, liens, charges, fines, impositions and any and all
other items which are attributable to or affect the Mortgaged Property and which
may attain a priority over this Deed of Trust unless Trustor shall be required
to make payment to Beneficiary on account of such items pursuant to
Section 1.05 hereof.  If requested by Beneficiary, prior to the
delinquency of any such taxes or other items, Trustor shall furnish Beneficiary
with receipts indicating such taxes and other items have been
paid.  Trustor shall promptly discharge any lien which has attained or
may attain priority over this Deed of Trust.

       

      1.05        Funds for Taxes and
Insurance.  In the event of any Event of Default (as
hereinafter defined), then Beneficiary may, at its option to be exercised upon
thirty (30) Business Days’ written notice to Trustor, require the deposit with
Beneficiary or its designee by Trustor, on the first day of each month, of an
amount sufficient to discharge such obligations of Trustor.  The
determination of the amount payable and of the fractional part thereof to be
deposited with Beneficiary each month shall be made by Beneficiary in its
reasonable discretion.  Said amounts shall be held by Beneficiary or
its designee not in trust and not as agent of Trustor and shall not bear
interest, and shall be applied to the payment of the obligations in respect to
which the amounts were deposited in such order or priority as Beneficiary shall
determine.  If at any time within thirty (30) Business Days prior to
the due date of any of the aforementioned obligations the amounts then on
deposit therefor shall be insufficient for the payment of such obligation in
full, Trustor shall within ten (10) Business Days after demand deposit the
amount of the deficiency with Beneficiary.  If the amounts deposited
are in excess of the actual obligations for which they were deposited,
Beneficiary may refund any such excess, or, at its option, may hold the same in
a reserve account, not in trust and not bearing interest, and reduce
proportionately the required monthly deposits for the ensuing year.

       

      All
amounts so deposited shall be held by Beneficiary or its designee as additional
security for the sums secured by this Deed of Trust and upon the occurrence of
an Event of Default hereunder Beneficiary may, in its sole and absolute
discretion and without regard to the adequacy of the security hereunder, apply
such amounts or any portion thereof to any part of the indebtedness secured
hereby.  Any such application of said amounts or any portion thereof
to any indebtedness secured hereby shall not be construed to cure or waive any
default or notice of default hereunder or invalidate any act done pursuant to
any such default or notice.

       

      If
Beneficiary requires deposits to be made pursuant to this Section, Trustor shall
deliver to Beneficiary all tax bills, bond and assessment statements, statements
of insurance premiums, and statements for any other obligations referred to
above as soon as the same are received by Trustor.

       

      Beneficiary
shall have the right to transfer all of its interest in all amounts deposited
under this Section to the purchaser or assignee of its interest herein, and
Beneficiary shall thereupon be released and have no further liability hereunder
for the application of such deposits, and Trustor shall look solely to such
purchaser or assignee for such application and for all responsibility relating
to such deposits.

      
        
           

        

        
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      1.06        Rents and
Profits.

       

      (a)           All
of Trustor’s interest in and rights under any Leases or other occupancy
agreements pertaining to the Mortgaged Property now existing or hereafter
entered into and all of the rents, royalties, issues, profits, revenue, income
and other benefits of the Mortgaged Property arising from the use or enjoyment
of all or any portion thereof or from any Lease or agreement pertaining thereto
now existing or hereafter entered into (herein, the “Rents and Profits”),
whether now due, past due, or to become due, and including all prepaid rents and
security deposits, are hereby absolutely, presently and unconditionally assigned
and conveyed to Beneficiary, to be applied by Beneficiary in payment of the
Secured Obligations.  Prior to the occurrence of any Event of Default,
Trustor shall have a license to collect and receive all Rents and Profits, which
license shall be terminable at the sole option of Beneficiary, without regard to
the adequacy of its security hereunder and without notice to or demand upon
Trustor, upon the occurrence of any Event of Default.  It is
understood and agreed that neither the foregoing assignment of Rents and Profits
nor the exercise by Beneficiary of any of its rights or remedies under
Article III hereof shall be deemed to make Beneficiary a
“mortgagee-in-possession” or otherwise responsible or liable in any manner with
respect to the Mortgaged Property or the use, occupancy, enjoyment or operation
of all or any portion thereof, unless and until Beneficiary, in person or by
agent, assumes actual possession thereof.  Appointment of a receiver
for the Mortgaged Property by any court at the request of Beneficiary or by
agreement with Trustor, or the entering into possession of any part of the
Mortgaged Property by such receiver, shall not be deemed to make Beneficiary a
mortgagee-in-possession or otherwise responsible or liable in any manner with
respect to the Mortgaged Property or the use, occupancy, enjoyment or operation
of all or any portion thereof.  Upon the occurrence of any Event of
Default, this shall constitute a direction to and full authority to each lessee
under any Lease and each guarantor of any Lease to pay all Rents and Profits to
Beneficiary without proof of the default relied upon.  Trustor hereby
irrevocably authorizes each lessee and guarantor to rely upon and comply with
any notice or demand by Beneficiary for the payment to Beneficiary of any Rents
and Profits due or to become due.

       

      (b)           Except
in accordance with the terms of the Credit Agreement, Trustor shall not execute
any Lease or other occupancy agreement of any part of the Mortgaged Property, or
amend, modify or terminate any Lease or other occupancy agreement of any part of
the Mortgage Property.  Trustor shall not execute any further
assignment of any of the Rents and Profits or any interest therein or suffer or
permit any such assignment to occur by operation of law.  Trustor
shall at any time or from time to time, upon request of Beneficiary, transfer
and assign to Beneficiary in such form as may be satisfactory to Beneficiary,
Trustor’s interest in any Lease, subject to and upon the condition, however,
that prior to the occurrence of any Event of Default hereunder Trustor shall
have a license to collect and receive all Rents and Profits under such Lease
upon accrual, but no more than one (1) month prior thereto, as set forth in
paragraph (a) above.  Whenever requested by Beneficiary, Trustor
shall furnish to Beneficiary a certificate of Trustor setting forth the names of
all lessees under any Leases the terms of their respective Leases, the space
occupied, the rents payable thereunder, and the dates through which any and all
rents have been paid.

       

      (c)           Without
the prior written consent of Beneficiary, Trustor shall not (i) accept
prepayments of rent exceeding one month under any Leases of any part of the
Mortgaged Property other than in the ordinary course of business;
(ii) consent to the assignment or subletting of the whole or any portion of
any lessee’s interest under any Lease other than in the ordinary course of
business; (iii) create or permit any lien or encumbrance which, upon
foreclosure, would be superior to any such Leases; or (iv) in any other
manner impair Beneficiary’s rights and interest with respect to the Rents and
Profits.

      
        
           

        

        
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      (d)           Beneficiary
shall have the right to assign Trustor’s right, title and interest in any Leases
to any subsequent holder of this Deed of Trust or any participating interest
therein or to any person acquiring title to all or any part of the Mortgaged
Property through foreclosure or otherwise.  Any subsequent assignee
shall have all the rights and powers herein provided to
Beneficiary.  Upon the occurrence of any Event of Default, Beneficiary
shall have the right to execute new Leases of any part of the Mortgaged
Property, including Leases that extend beyond the term of this Deed of
Trust.  Beneficiary shall have the authority, as Trustor’s
attorney-in-fact, such authority being coupled with an interest and irrevocable,
to sign the name of Trustor and to bind Trustor on all papers and documents
relating to the operation, leasing and maintenance of the Mortgaged
Property.

       

      (e)           If
any part of any automobile parking areas included within the Mortgaged Property
is taken by condemnation or before such areas are otherwise materially and
permanently reduced, Trustor shall provide parking facilities in kind, size and
location to comply with all Leases, and before making any contract for such
substitute parking facilities, Trustor shall furnish to Beneficiary satisfactory
assurance of completion thereof, free of liens and in conformity with all
governmental zoning, land use and environmental regulations.

       

      1.07        Security
Agreement.  This Deed of Trust is intended to be a security
agreement pursuant to the Uniform Commercial Code for (i) any and all items
of personal property specified above as part of the Mortgaged Property which,
under applicable law, may be subject to a security interest pursuant to the
Uniform Commercial Code and which are not herein effectively made part of the
real property, and (ii)  any and all items of property specified above as
part of the Mortgaged Property which, under applicable law, constitute fixtures
and may be subject to a security interest under Section 9-313 of the
Uniform Commercial Code; and Trustor hereby grants Beneficiary a security
interest in said property, and in all additions thereto, substitutions therefor
and proceeds thereof, for the purpose of securing the Secured
Obligations.  Trustor agrees to execute and deliver financing and
continuation statements covering said property from time to time and in such
form as Beneficiary may require to perfect and continue the perfection of the
Beneficiary’s lien or security interest with respect to said
property.  Trustor shall pay all costs of filing such statements and
renewals and releases thereof and shall pay all reasonable costs and expenses of
any record searches for financing statements Beneficiary may reasonably
require.  Upon the occurrence of any Event of Default hereunder,
Beneficiary shall have the rights and remedies of a secured party under the
Uniform Commercial Code, as well as all other rights and remedies available at
law or in equity, and, at Beneficiary’s option, Beneficiary may also invoke the
remedies provided in Article III of this Deed of Trust as to such
property.

      
        
           

        

        
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      1.08        Further Encumbrances or
Sales.

       

      (a)           If
Trustor shall take any of the following actions without the prior written
consent of Beneficiary being first had and obtained, such action shall
constitute an Event of Default hereunder and under the Credit
Agreement:  if Trustor shall execute or deliver any pledge, security
agreement, deed to secure debt mortgage, deed of trust or other instrument of
hypothecation, covering all or any portion of the Mortgaged Property or any
interest therein, or if Trustor shall sell, contract to sell, lease with option
to purchase, convey, transfer or otherwise dispose of all or any portion of the
Mortgaged Property or any interest therein (including, without limitation, any
condominium estate or unit therein), whether voluntarily or involuntarily, by
operation of law or otherwise (including, without limitation, any foreclosure
sale or deed in lieu of foreclosure under any mortgage or deed of trust the lien
of which is junior to the lien of this Deed of Trust, whether or not Beneficiary
has approved such mortgage or deed of trust).

       

      (b)           Notwithstanding
(a) above, Trustor may from time to time replace items of personal property and
fixtures constituting a part of the Mortgaged Property, provided
that:  (i) the replacements for such items of personal property
or fixtures are of equivalent value and quality; (ii) other than equipment
leased in the ordinary course of Trustor’s business, Trustor has good and clear
title to such replacement property free and clear of any and all liens,
encumbrances, security interests, ownership interests, claims of title
(contingent or otherwise), or charges of any kind, or the rights of any
conditional sellers, vendors or any other third parties in or to such
replacement property have been expressly subordinated at no cost to Beneficiary
to the lien of this Deed of Trust in a manner reasonably satisfactory to
Beneficiary; and (iii) at the option of Beneficiary, Trustor provides at no
cost to Beneficiary a satisfactory opinion of counsel to the effect that this
Deed of Trust constitutes a valid and subsisting first lien on and security
interest in such replacement property and is not subject to being subordinated
or the priority thereof affected under any applicable law.

       

      1.09        Preservation and Maintenance
of Mortgaged Property.  Trustor shall keep the Mortgaged
Property and every part thereof in good condition and repair, and shall not,
except for ordinary wear and tear, permit or commit any waste, impairment, or
deterioration of the Mortgaged  Property, or commit, suffer or permit
any act upon or use of the Mortgaged Property in violation of law or applicable
order of any governmental authority, whether now existing or hereafter enacted
and whether foreseen or unforeseen, or in violation of any covenants, conditions
or restrictions affecting the Mortgaged Property, or bring or keep any article
upon any of the Mortgaged Property or cause or permit any condition to exist
thereon which would be prohibited by or could invalidate any insurance coverage
maintained, or required hereunder to be maintained, by Trustor on or with
respect to any part of the Mortgaged Property, and Trustor further shall do all
other acts which from the character or use of the Mortgaged Property may be
reasonably necessary to protect the security hereof, the specific enumerations
herein not excluding the general.  Trustor shall underpin and support,
when necessary, any building, structure or other improvement situated on the
Mortgaged Property and shall not remove or demolish any building on the
Mortgaged Property.  Trustor shall complete or restore and repair
promptly and in a good workmanlike manner any building, structure or improvement
which may be constructed, damaged or destroyed thereon and pay when due all
claims for labor performed and materials furnished therefor, whether or not
insurance or other proceeds are available to cover in whole or in part the costs
of any such completion, restoration or repair; provided, however, that Trustor
shall not demolish or remove any building, structure or improvement on the
Mortgaged Property, nor consent to or permit any of the foregoing to be done,
without in each case obtaining the prior written consent of Beneficiary
thereto.  Trustor shall notify Beneficiary immediately in writing of
any damage to the Mortgaged Property in excess of $50,000.00.

      
        
           

        

        
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      Trustor
shall not drill or extract or enter into any Lease for the drilling for or
extraction of oil, gas or other hydrocarbon substances or any mineral of any
kind or character on or from the Mortgaged Property or any part thereof without
first obtaining Beneficiary’s written consent.

       

      1.10        Offset
Certificates.  Trustor, within ten (10) Business Days after
request, shall furnish a written statement duly acknowledged of all amounts due
on any indebtedness secured hereby, and stating whether any offsets or defenses
exist against the Secured Obligations and covering such other matters with
respect to any such indebtedness as Beneficiary may reasonably
require.

       

      1.11        Trustee’s Costs and
Expenses; Governmental Charges.  Trustor shall pay all costs,
fees and expenses in connection with any trustee’s sale guaranty or other title
insurance coverage ordered in connection with any sale or foreclosure
proceedings hereunder, and shall pay all taxes (except federal and state income
taxes) or other governmental charges or impositions imposed by any governmental
authority on Trustee or Beneficiary by reason of its interest in the Credit
Agreement or this Deed of Trust.

       

      1.12        Protection of Security;
Costs and Expenses.

       

      Trustor
agrees that, at any time and from time to time, it will execute and deliver all
such further documents and do all such other acts and things as Beneficiary may
reasonably request in writing in order to protect the security and priority of
the lien created hereby.  Trustor shall appear in and defend any
action or proceeding purporting to affect the security hereof or the rights or
powers of Beneficiary or Trustee, and shall pay all reasonable costs and
expenses, including without limitation cost of evidence of title and reasonable
attorneys’ fees (including, without limitation, the allocated cost of internal
counsel), in any such action or proceeding in which Beneficiary or Trustee may
appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust
or to enforce or establish any other rights or remedies of Beneficiary
hereunder.  If Trustor fails to perform any of the covenants or
agreements contained in this Deed of Trust, or if any action or proceeding is
commenced which affects Beneficiary’s interest in the Mortgaged Property or any
part thereof, including, but not limited to, eminent domain, code enforcement,
or proceedings or any nature whatsoever under any federal or state law, whether
now existing or hereafter enacted or amended, relating to bankruptcy,
insolvency, arrangement, reorganization or other form of debtor relief, then
Beneficiary or Trustee may, but without obligation to do so and without notice
to or demand upon Trustor and without releasing Trustor from any obligation
hereunder, make such appearances, disburse such sums and take such action as
Beneficiary or Trustee deems necessary or appropriate to protect Beneficiary’s
interest, including, but not limited to, disbursement of reasonable attorneys’
fees, entry upon the Mortgaged Property to make repairs or take other action to
protect the security hereof, and payment, purchase, contest or compromise of any
encumbrance, charge or lien which in the judgment of either Beneficiary or
Trustee appears to be prior or superior hereto.  Trustor further
agrees to pay all reasonable expenses of Beneficiary (including fees and
disbursements of counsel) incident to the protection of the rights of
Beneficiary hereunder, or to enforcement or collection of payment of any Secured
Obligation, whether by judicial or nonjudicial proceedings, or in connection
with any bankruptcy, insolvency, arrangement, reorganization or other debtor
relief proceeding of Trustor, or otherwise.  Any amounts disbursed by
Beneficiary or Trustee pursuant to this Section shall be a Secured Obligation
secured by this Deed of Trust and each of the Loan Documents to which Trustor is
a party as of the date of disbursement and shall bear interest at the
post-maturity interest rate provided for in Section 2.10(c) of the Credit
Agreement.  All such amounts shall be payable by Trustor immediately
without demand.  Nothing contained in this Section shall be construed
to require Beneficiary or Trustee to incur any expense, make any appearance, or
take any other action.  Attorneys’ fees of Beneficiary reimbursable
hereunder shall include all fees and disbursements of any law firm or other
external counsel.

      
        
           

        

        
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      1.13        Fixture
Filing.  This Deed of Trust constitutes a financing statement
filed as a fixture filing in the Official Records of the County Recorder of the
county in which the Mortgaged Property is located with respect to any and all
fixtures included within the term “Mortgaged Property” as used herein and with
respect to any goods or other personal property that may now be or hereafter
become such fixtures.

       

      ARTICLE
II

       

      EVENTS OF
DEFAULT

       

      The
occurrence of any Event of Default, as such term is defined in the Credit
Agreement, shall constitute an event of default (“Event of Default”)
hereunder.

       

      ARTICLE
III

       

      REMEDIES

       

      Upon the
occurrence and during the continuance of any Event of Default, Trustee and
Beneficiary shall have the following rights and remedies:

       

      3.01        Acceleration.  Beneficiary
may declare the entire indebtedness secured hereby (if not then due and
payable), and accrued and unpaid interest thereon, to be due and payable
immediately, without notice of intention to accelerate, notice of acceleration
or notice of any kind or nature whatsoever, demand or presentment, all of which
are hereby expressly waived by Trustor.

      
        
           

        

        
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      3.02        Entry.  Irrespective
of whether Beneficiary exercises the option provided in Section 3.01 above,
Beneficiary in person or by agent or by court-appointed receiver may enter upon,
take possession of, manage and operate the Mortgaged Property or any part
thereof and do all things necessary or appropriate in Beneficiary’s sole
discretion in connection therewith, including without limitation making and
enforcing, and if the same be subject to modification or cancellation, modifying
or cancelling Leases upon such terms or conditions as Beneficiary deems proper,
obtaining and evicting tenants, and fixing or modifying rents, contracting for
and making repairs and alterations, and doing any and all other acts which
Beneficiary deems proper to protect the security hereof; and either with or
without so taking possession, in its own name or in the name of Trustor, sue for
or otherwise collect and receive the Rents and Profits, including those past due
and unpaid, and apply the same less costs and expenses of operation and
collection, including reasonable attorneys’ fees, upon any indebtedness secured
hereby, and in such order as Beneficiary may determine.  Upon request
of Beneficiary, Trustor shall assemble and make available to Beneficiary at the
site of the real property covered hereby any of the Mortgaged Property which has
been removed therefrom.  The entering upon and taking possession of
the Mortgaged Property, or any part thereof, and the collection of any Rents and
Profits and the application thereof as aforesaid shall not cure or waive any
default theretofore or thereafter occurring or affect any notice or default
hereunder or invalidate any act done pursuant to any such default or notice,
and, notwithstanding continuance in possession of the Mortgaged Property or any
part thereof by Beneficiary, Trustor or a receiver, and the collection, receipt
and application of the Rents and Profits, Beneficiary shall be entitled to
exercise every right provided for in this Deed of Trust or by law or in equity
upon or after the occurrence of a default, including without limitation the
right to exercise the power of sale.  Any of the actions referred to
in this Section may be taken by Beneficiary irrespective of whether any notice
of default or election to sell has been given hereunder and without regard to
the adequacy of the security for the Secured Obligations.

       

      3.03        Judicial
Action.  Beneficiary may bring an action in any court of
competent jurisdiction to foreclose this instrument or to enforce any of the
covenants and agreements hereof and shall have the right to join Trustor as a
party in any such action.

      
        
           

        

        
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      3.04        Power of
Sale.  The Trustee, at the request of Beneficiary, shall sell
at public vendue the Mortgaged Property or any part thereof or any interest
therein, to the highest bidder, for cash, all in accordance with and as required
by applicable law.  Any notices, postings and filings required by
applicable law, may be performed or given by Trustee or Beneficiary or by any
agent acting in their or its behalf, unless otherwise required by applicable
law.  Trustor designates as Trustor’s address for the purposes of such
notice, the address set out on page 1 of this Deed of Trust, and each other
debtor, if any, obligated to pay the debts secured hereby agrees that such
address shall likewise constitute such other debtor’s address for such notice,
unless a different address is designated by such other debtor; no change of such
address or designation of a different address shall be binding on Beneficiary
until ten (10) Business Days after Beneficiary has received notice of such
change sent to Beneficiary by certified mail, postage prepaid, return receipt
requested, addressed to Beneficiary at the address for Beneficiary set out
herein (or to such other address as Beneficiary may have designated by notice
given as above provided to Trustor and such other debtors).  Any
change of address of Beneficiary shall be effective ten (10) Business Days after
written notice thereof addressed to Trustor and sent by certified mail, postage
prepaid, return receipt requested, has been deposited in the care and custody of
the United States Postal Service.  In connection with any sale or
sales hereunder, Beneficiary may elect to treat any of the Mortgaged Property
which consists of a right in action or which is property that can be severed
from the real property covered hereby or any Improvements thereon without
causing structural damage thereto as if the same were personal property, and
dispose of the same in accordance with applicable law, separate and apart from
the sale of real property.  Where the Mortgaged Property consists of
real and personal property or fixtures, whether or not such personal property is
located on or within the real property, Beneficiary may elect in its discretion
to exercise its rights and remedies against any or all of the real property,
personal property, and fixtures in such order and manner as is now or hereafter
permitted by applicable law.  Should Beneficiary elect to sell any
portion of the Mortgaged Property which is real property or which is personal
property or fixtures that Beneficiary has elected to sell together with real
property in accordance with the laws governing a sale of real property,
Beneficiary or Trustee shall give such notice of default and election to sell as
may then be required by law.  Thereafter, upon the expiration of such
time and the giving of such notice of sale as may then be required by law, and
without the necessity of any demand on Trustor, Trustee, at the time and place
specified in the notice of sale, shall sell said real property or any part
thereof at public auction to the highest bidder for cash in lawful money of the
United States or in such other manner as Beneficiary shall direct which is not
prohibited by applicable law.  Trustee may, and upon request of
Beneficiary shall, from time to time, postpone any sale hereunder by public
announcement thereof at the time and place noticed therefor.  If the
Mortgaged Property consists of several lots, parcels or items of property,
Beneficiary may: (i) designate the order in which such lots, parcels or
items shall be offered for sale or sold, or (ii) elect to sell such lots,
parcels or items through a single sale, or through two or more successive sales,
or in any other manner Beneficiary deems in its best interest.  Any
person, including Trustor, Trustee or Beneficiary, may purchase at any sale
hereunder, and Beneficiary shall have the right to purchase at any sale
hereunder by crediting upon the bid price the amount of all or any part of the
Secured Obligations.  Should Beneficiary desire that more than one
sale or other disposition of the Mortgaged Property be conducted, Beneficiary
may, at its option, cause the same to be conducted simultaneously, or
successively, on the same day, or at such different days or times and in such
order as Beneficiary may deem to be in the Beneficiary’s best interests, and no
such sale shall terminate or otherwise affect the lien of this Deed of Trust on
any part of the Mortgaged Property not sold until all Secured Obligations have
been fully paid.  In the event Beneficiary elects to dispose of the
Mortgaged Property through more than one sale, Trustor agrees to pay the costs
and expenses of each such sale and of any judicial proceedings wherein the same
may be made, including reasonable compensation to Trustee and Beneficiary, their
agents and counsel, and to pay all expenses, liabilities and advances made or
incurred by Trustee in connection with such sale or sales, together with
interest on all such advances made by Trustee at the lower of the post-maturity
interest rate provided for in Section 2.10(c) of the Credit Agreement or
the maximum rate permitted by law to be charged by
Trustee.  Beneficiary may sell the Mortgaged Property for any amount
it deems acceptable, whether or not such amount is equal to the Secured
Obligations, or otherwise.  Trustor authorizes and empowers Trustee,
upon any sale hereunder, to execute and deliver to the purchaser or purchasers a
good and sufficient deed or deeds conveying the property so sold, with covenant
of general warranty binding on Trustor and Trustor’s legal representatives,
successors and assigns, whereupon such purchaser or purchasers shall be let into
immediate possession.

       

      The
recitals contained in any deed(s) or other instrument(s) given in connection
with any such foreclosure sale and/or any affidavit(s) of a person(s)
knowledgeable of the facts as to compliance with the requirements of such sale,
shall be prima facie evidence of such facts and it shall not be necessary to
prove in any court the existence of such facts.  All prerequisites and
requirements of any sale or sales shall be conclusively presumed to have been
performed and all persons subsequently dealing with the property so conveyed,
including without limitation, the purchaser(s) thereof, shall be fully protected
in relying upon the truthfulness of such recitals or
affidavits.

      
        
           

        

        
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      Upon any
foreclosure sale hereunder, Trustor shall immediately surrender and deliver
possession to the purchaser.  If Trustor fails to do so, Trustor shall
be a tenant at will of the purchaser and such purchaser shall have the right to
bring an action of forcible entry and detainer.

       

      3.05        Proceeds of
Sale.  The proceeds of any sale made under or by virtue of this
Article III, together with all other sums which then may be held by Trustee
or Beneficiary under this Deed of Trust, whether under the provisions of this
Article III or otherwise, shall be applied as follows:

       

      FIRST:  To
the payment of the costs and expenses of sale and of any judicial proceedings
wherein the same may be made, including reasonable compensation to Trustee and
Beneficiary, their agents and counsel, and to the payment of all expenses,
liabilities and advances made or incurred by Trustee under this Deed of Trust,
together with interest on all advances made by Trustee at the lower of the
post-maturity interest rate provided for in Section 2.10(c) of the Credit
Agreement or the maximum rate permitted by law to be charged.

       

      SECOND:  To
the payment of any and all sums expended by Beneficiary under the terms hereof,
not then repaid with accrued interest at the lower of the post-maturity rate
provided for in Section 2.10(c) of the Credit Agreement or the maximum rate
permitted by law.

       

      THIRD:  To
the payment of all other Secured Obligations.

       

      FOURTH:  The
remainder, if any, to the person or persons legally entitled
thereto.

       

      3.06       Waiver of
Marshalling.  Trustor, for itself and for all persons hereafter
claiming through or under it or who may at any time hereafter become holders of
liens junior to the lien of this Deed of Trust, hereby expressly waives and
releases all rights to direct the order in which any of the Mortgaged Property
shall be sold in the event of any sale or sales pursuant hereto and to have any
of the Mortgaged Property and/or any other property now or hereafter
constituting security for any of the Secured Obligations marshalled upon any
foreclosure of this Deed of Trust or of any other security for any of the
Secured Obligations.

       

      3.07       Remedies
Cumulative.  No remedy herein conferred upon or reserved to
Trustee or Beneficiary is intended to be exclusive of any other remedy herein or
by law provided, by each shall be cumulative and shall be in addition to every
other remedy given hereunder or now or hereafter existing at law or in equity or
by statute.  No delay or omission of Trustee or Beneficiary to
exercise any right or power accruing upon any Event of Default shall impair any
right or power or shall be construed to be a waiver of any Event of Default or
any acquiescence therein; and every power and remedy given by this Deed of Trust
to Trustee or Beneficiary may be exercised from time to time as often as may be
deemed expedient by Trustee or Beneficiary.  If there exists
additional security for the performance of the Secured Obligations, Beneficiary,
at its sole option, and without limiting or affecting any of its rights or
remedies hereunder, may exercise any of the rights and remedies to which it may
be entitled hereunder either concurrently with whatever rights and remedies it
may have in connection with such other security or in such order as it may
determine.  Any application of any amounts or any portion thereof held
by Beneficiary at any time as additional security hereunder to any Secured
Obligations shall not extend or postpone the due dates of any payments due from
Trustor hereunder or under the Credit Agreement, any Future Advances or any of
the Loan Documents or otherwise be construed to cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to any such
default or notice.

      
        
           

        

        
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      ARTICLE
IV

       

      MISCELLANEOUS

       

      4.01       Severability.  In
the event any one or more of the provisions contained in this Deed of Trust
shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Deed of Trust, but this Deed of Trust shall be construed
as if such invalid, illegal or unenforceable provision had never been contained
herein.

       

      4.02       Certain
Charges.  Trustor agrees to pay Beneficiary for each statement
of Beneficiary as to the Secured Obligations furnished at Trustor’s request,
such reasonable fee as is charged by Beneficiary as of the time said statement
is furnished.  Trustor further agrees to pay the charges of
Beneficiary for any other service rendered Trustor, or on its behalf, connected
with this Deed of Trust or the indebtedness secured hereby, including without
limitation the delivery to an escrow holder of a request for reconveyance of
this Deed of Trust, transmitting to an escrow holder moneys secured hereby,
changing its records pertaining to this Deed of Trust and the Secured
Obligations to show a new owner of the Mortgaged Property, and replacing an
existing policy of insurance held hereunder with another such
policy.

       

      4.03       Notices.  All
notices given hereunder or in connection herewith shall be given or made, and
shall be effective, in accordance with the provisions governing notices set
forth in the Subsidiary Guaranty.

       

      4.04       Trustor Not
Released.  Extension of the time for payment or modification of
the terms of payment of any Secured Obligation granted by Beneficiary to any
successor in interest of Trustor shall not operate to release, in any manner,
the liability of the original Trustor.  Beneficiary shall not be
required to commence proceedings against such successor or refuse to extend time
for payment or otherwise modify the terms of payment of the Secured Obligations
by reason of any demand made by the original Trustor.  Without
affecting the liability of any person, including Trustor, for the payment of any
Secured Obligation, or the lien of this Deed of Trust on the remainder of the
Mortgaged Property for the full amount of any such indebtedness and liability
unpaid, Beneficiary and Trustee are respectively empowered as
follows:  Beneficiary may from time to time and without notice
(a) release any person liable for the payment of any of the Secured
Obligations, (b) extend the time or otherwise alter the terms of payment of
any of the Secured Obligations, (c) accept additional real or personal
property of any kind as security therefor, whether evidenced by deeds of trust,
mortgages, security agreement or any other instruments of security or
(d) alter, substitute or release any property securing any Secured
Obligation; Trustee may, at any time, and from time to time, upon the written
request of Beneficiary (e) consent to the making of any map or plat of the
Mortgaged Property or any part thereof, (f) join in granting any easement
or creating any restriction thereon, (g) join in any subordination or other
agreement affecting this Deed of Trust or the lien or charge hereof, or
(h) reconvey, without any warranty, all or part of the Mortgaged
Property.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      4.05       Inspection.  Upon
reasonable advance notice, Beneficiary may at any reasonable time or times make
or cause to be made entry upon and inspection of the Mortgaged Property or any
part thereof in person or by agent.

       

      4.06       Statute of
Limitations.  The pleading of any statute of limitations as a
defense to any and all obligations secured by this Deed of Trust is hereby
waived to the fullest extent permitted by law.

       

      4.07       Interpretation.  Wherever
used in this Deed of Trust, unless the context otherwise indicates a contrary
intent, or unless otherwise specifically provided herein, the word “Trustor”
shall mean and include both Trustor and any subsequent owner or owners of the
Mortgaged Property, the word “Borrower” shall mean and include not only Borrower
but also any successor to Borrower under the Credit Agreement and the word
“Beneficiary” shall mean and include not only Capital One, N.A., but also any
successor to Beneficiary under the Credit Agreement and any pledgee of or
participants in the indebtedness incurred pursuant to the Credit
Agreement.  Whenever the context requires, the singular includes the
plural and vice versa and each gender includes each other gender.  The
captions and headings of the Articles and Sections of this Deed of Trust are for
convenience only and are not to be used to interpret, define or limit the
provisions hereof.

       

      4.08       Consent; Delegation to
Sub-agents.  The granting or withholding of consent by
Beneficiary to any transaction as required by the terms hereof shall not be
deemed a waiver of the right to require consent to future or successive
transactions.  Wherever a power of attorney is conferred upon
Beneficiary hereunder, it is understood and agreed that such power is conferred
with full power of substitution, and Beneficiary may elect in its sole
discretion to exercise such power itself or to delegate such power, or any part
thereof, to one or more sub-agents.

       

      4.09       Successors and
Assigns.  All of the grants, obligations, covenants,
agreements, terms, provisions and conditions herein shall run with the land and
shall apply to bind and inure to the benefit of, the heirs, administrators,
executors, legal representatives, successors and assigns of Trustor and the
successors in trust of Trustee and the endorsees, transferees, successors and
assigns of Beneficiary.

       

      4.10       Governing
Law.  This Deed of Trust, including the creating of this Deed
of Trust, the perfection of the lien or security interest in the Mortgaged
Property, and the rights and remedies of Beneficiary, and Trustee as provided
herein, shall be governed by and construed in accordance with the internal laws
of the state in which the Mortgaged Property is located, without regard to
principles of conflicts of law.  The Credit Agreement and the
indebtedness arising thereunder (including, without limitation, the right to
hold Trustor liable for any deficiency remaining after foreclosure or to bring
suit upon the indebtedness secured hereby without having first proceeded against
the Mortgaged Property or other collateral therefor) shall be governed by and
construed in accordance with the internal laws of the State of New York, without
regard to principles of conflicts of law.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

       

      4.11       Substitution of
Trustee.  Beneficiary may remove Trustee at any time or from
time to time, with or without cause, and appoint a successor trustee, and upon
such appointment, all powers, rights, duties and authority of Trustee, as
aforesaid, shall thereupon become vested in such
successor.  Beneficiary shall have full power to appoint, at any time
and without any formality other than by written instrument executed by
Beneficiary, a substitute trustee, and, if desired by Beneficiary, several
substitute trustees in succession, each of whom shall succeed to all the estate,
rights, powers and duties of Trustee named herein, and no notice of such
appointment need be given to Trustor or to any other person or filed for record
in any public office.  Such appointment may be executed by Beneficiary
or any agent of Beneficiary and such appointment shall be conclusively presumed
to be executed with authority and shall be valid and sufficient without proof of
any action by the board of directors or any executive officer of
Beneficiary.

       

      Neither
Trustee nor any substitute trustee shall be liable to Trustor for any reason or
under any theory, except for fraud or intentional misconduct done in bad faith,
actually proved by Trustor.  Trustor agrees to indemnify, defend and
hold harmless Trustee and any substitute trustee for any liability or cause of
action involving Trustee or any substitute trustee arising out of the
indebtedness secured hereby, this Deed of Trust or the Mortgaged Property,
including, without limitation, environmental liability and liability resulting
from the negligence or gross negligence of Trustee or any substitute
trustee.

       

      4.12       Time of Essence; No
Waiver.  Time is declared to be of the essence in this Deed of
Trust.  No failure or delay by Beneficiary in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege.  No waiver, consent or approval of any kind by
Beneficiary shall be effective unless contained in a writing signed and
delivered by such party.  No notice to or demand on Trustor in any
case shall entitle Trustor to any other notice or demand in similar or other
circumstances, nor shall such notice of demand constitute a waiver of the rights
of Beneficiary to any other or further actions.

       

      4.13       Intentionally
Omitted.

      
        
           

        

        
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      4.14       Interest.  It
is the intent of the parties hereto to comply strictly with applicable usury
laws, if any; accordingly, notwithstanding any provision to the contrary herein
or in any of the other documents securing the payment of the indebtedness hereby
secured or otherwise relating thereto, in no event shall this Deed of Trust or
such documents require or permit the payment, charging, taking, reserving,
collection or receiving of any sums constituting interest under applicable laws
which exceed the maximum amount permitted by such laws.  If any such
excess interest is contracted for, charged, taken, reserved, collected or
received in any of the documents securing the payment of such debts or otherwise
relating thereto, or in any communication by Beneficiary or any other person to
Trustor or any other party liable for payment thereof, or in the event all or
part of the principal or interest thereof shall be prepaid or accelerated, so
that under any of such circumstances or under any other circumstances whatsoever
the amount of interest contracted for, charged, taken, reserved, collected or
received on the amount of principal actually outstanding from time to time shall
exceed the maximum amount of interest permitted by applicable usury laws, then
in any such event it is agreed as follows:  (i) the provisions of
this paragraph shall govern and control, (ii) neither Trustor nor any other
person or entity now or hereafter liable for the payment of the Secured
Obligations shall be obligated to pay the amount of such interest to the extent
such interest is in excess of the maximum amount of interest permitted by
applicable usury laws, (iii) any such excess which is or has been received
notwithstanding this paragraph shall be credited against the then unpaid
principal balance of the Secured Obligations, or if the Secured Obligations have
been or would be paid in full, refunded to the Trustor, and (iv) the provisions
of this Deed of Trust, the Credit Agreement and the other Loan Documents, and
any other communication to the Trustor, shall immediately be deemed reformed and
such excess interest reduced, without the necessity of executing any other
document, to the maximum lawful rate allowed under applicable laws as construed
by courts having jurisdiction hereof or thereof.  Without limiting the
foregoing, all calculations of the rate of interest contracted for, charged,
taken, reserved, or received in connection herewith which are made for the
purpose of determining whether such rate exceeds the maximum lawful rate shall
be made to the extent permitted by applicable laws by amortizing, prorating,
allocating and spreading during the period of the full term of the loan,
including all prior and subsequent renewals and extensions, all interest at any
time contracted for, charged, taken, reserved, or received.  The terms
of this paragraph shall be deemed to be incorporated in every loan document,
security instrument, and communication relating to the Secured
Obligations.

       

      4.15       Waiver.  To
the fullest extent not prohibited by law, Trustor hereby irrevocably and
unconditionally waives and releases all benefits and rights that may accrue to
Trustor by any present or future law which would permit Trustor and other
persons against whom recovery of deficiencies is sought to present competent
evidence of the fair market value of the Mortgaged 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.  Trustor agrees that this release and waiver creates an
irrebuttable presumption that the proceeds received by the Trustee from any
foreclosure sale conducted pursuant to the terms hereof (whether by credit or
cash bid) are equal to the fair market value of the Mortgaged Property for
purposes of calculating deficiencies owed by Borrower pursuant to the terms of
the Note, Trustor pursuant to the Subsidiary Guaranty and others against whom
recovery of a deficiency is sought.

       

      Alternatively,
in the event this waiver is determined by a court of competent jurisdiction to
be unenforceable, the following shall be the basis for the finder of fact’s
determination of the fair market value of the Mortgaged Property as of the date
of the foreclosure sale in proceedings governed by applicable law:

       

      (a)           The
Mortgaged Property shall be valued in an “as is” condition as of the date of the
foreclosure sale, without any assumption or expectation that the Mortgaged
Property will be repaired or improved in any manner before a resale of the
Mortgaged Property after foreclosure;

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

       

      (b)           The
valuation shall be based upon an assumption that the purchaser at foreclosure
sale desires a prompt resale of the Mortgaged Property for cash (but no later
than twelve months) following the foreclosure sale;

       

      (c)           All
reasonable closing costs customarily borne by the seller in a commercial real
estate transaction should be deducted from the gross fair market value of the
Mortgaged Property, including, without limitation, brokerage commissions, title
insurance, a survey of the Mortgaged Property, tax prorations, reasonable
attorney’s fees, and marketing costs;

       

      (d)           The
gross fair market value of the Mortgaged Property shall be further discounted to
account for any estimated holding costs associated with maintaining the
Mortgaged Property pending sale, including, without limitation utility expenses,
property management fees, taxes and assessments (to the extent not accounted for
in subparagraph (c) above), and other maintenance expenses; and

       

      (e)           Any
expert opinion testimony given or considered in connection with a determination
of the fair market value of the Mortgaged Property must be given by persons
having at least five (5) years’ experience in appraising property similar to the
Mortgaged Property and who have conducted and prepared a complete written
appraisal of the Mortgaged Property taking into consideration the factors set
forth above.

       

      4.16       State Specific
Provisions.  In the event of any inconsistencies between this
Section 4.16 and any of the other terms and provisions of this Deed of Trust,
the terms and conditions of this Section 4.16 shall control and be
binding.  [ADD STATE SPECIFIC PROVISIONS]

       

      [4.17      Leasehold Mortgagee
Provisions.  [TO BE INSERTED FOR GROUND LEASED
PROPERTIES].

      (a)           Definitions.

       

      (i)       
    “Fee Estate” shall
mean the fee estate held by Fee Owner.

       

      (ii)           “Ground Lease” shall
mean that certain ground lease, dated __________, between _________, as ground
lessor (“Fee
Owner”) and Trustor, as ground lessee.

       

      (iii)          “Leasehold Estate”
shall mean the leasehold estate created pursuant to the Ground
Lease.

       

      (b)           No Merger of Fee and
Leasehold Estates; Releases.  So long as any portion of the
Secured Obligations shall remain unpaid, unless Beneficiary shall otherwise
consent, the fee title to the land under any Ground Lease and the applicable
Leasehold Estate shall not merge but shall always be kept separate and distinct,
notwithstanding the union of such estates in Trustor, Fee Owner, or in any other
Person by purchase, operation of law or otherwise.  Beneficiary
reserves the right, at any time, to release portions of the Mortgaged Property,
including, but not limited to, the Leasehold Estate, with or without
consideration, at Beneficiary’s election, without waiving or affecting any of
its rights hereunder or under the Note or the other Loan Documents and any such
release shall not affect Beneficiary’s rights in connection with the portion of
the Mortgaged Property not so released.

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

       

      (c)           Trustor’s Acquisition of Fee
Estate.  In the event that Trustor, so long as any portion of
the Secured Obligations remains unpaid, shall be the owner and holder of the fee
title to the land under any Ground Lease, the lien of this Deed of Trust shall
be spread to cover Trustor’s fee title to such land and said fee title shall be
deemed to be included in the Mortgaged Property.  Trustor agrees, at
its sole cost and expense, including without limitation, Beneficiary’s
reasonable attorney’s fees, to (i) execute any and all documents or
instruments necessary to subject its fee title to such land to the lien of this
Deed of Trust and (ii) provide a title insurance policy which shall insure
that the lien of this Deed of Trust is a first lien on Trustor’s fee title to
such land.

       

      (d)           Bankruptcy.  (i)  Subject
to the terms of the Credit Agreement, Trustor shall not, in any event, including
the bankruptcy, reorganization or insolvency of Trustor or Fee Owner, (A)
surrender its leasehold estate, or any portion thereof, nor terminate, cancel or
acquiesce in the rejection of any Ground Lease; (B) consent or fail to
object to any attempt by Fee Owner to sell or transfer its interest in the land
and the improvements under any Ground Lease free and clear of such Ground Lease;
or (C) modify, change, supplement, alter or amend any Ground Lease in any
respect, either orally or in writing.  Subject to the terms of the
Credit Agreement, Trustor does hereby expressly release, assign, relinquish and
surrender unto Beneficiary all its right, power and authority to terminate,
cancel, acquiesce in the rejection of, consent or object to any attempted
transfer Fee Owner’s interest in the land and the improvements under any Ground
Lease free and clear of such Ground Lease, or modify, change, supplement, alter
or amend any Ground Lease in any respect, either orally or in writing, at any
time, including in the event of the bankruptcy, reorganization or insolvency of
Trustor or the Fee Owner under any Ground Lease, and any attempt on the part of
Trustor to exercise any such right without the consent of Beneficiary shall be
null and void.  Notwithstanding the foregoing, in the event of a
threatened termination of any Ground Lease due to the bankruptcy, reorganization
or insolvency of Trustor, Trustor shall, at Beneficiary’s election, absolutely
assign to Beneficiary, in lieu of such termination, all of Trustor’s right,
title and interest in and to such Ground Lease.

       

      (ii)           In
the event any Ground Lease is rejected by the Fee Owner, as debtor in
possession, or by a trustee for the Fee Owner, pursuant to Section 365 of the
Bankruptcy Code, Trustor shall not exercise its right to elect under
Section 365(h)(1) of the Bankruptcy Code to terminate or treat such Ground
Lease as terminated.  Any such election made shall be null and
void.  In any event, Trustor hereby waives, for the benefit of
Beneficiary, its successors and assigns only, and not enforceable by anyone
else, the provisions of Section 365 of the Bankruptcy Code, or of any
statute or rule of law now or hereafter in effect which gives or purports to
give Trustor any right of election to terminate any Ground Lease, to acquiesce
in the termination of any Ground Lease or to surrender possession of the
Mortgaged Property in the event of the bankruptcy, reorganization or insolvency
of Trustor or any other party including, without limitation, any Fee
Owner.

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

       

      (iii)          In
the event any Fee Owner, as debtor in possession, or by a trustee for such Fee
Owner, attempts to transfer its interest in the land and the improvements under
any Ground Lease free and clear of such Ground Lease pursuant to
Section 363 of the Bankruptcy Code, Trustor shall not consent, acquiesce or
fail to object to such attempted transfer.  Any such consent,
acquiescence or failure to object made shall be null and void.  In any
event, Trustor hereby waives, for the benefit of Beneficiary, its successors and
assigns only, and not enforceable by anyone else, the provisions of
Section 363 of the Bankruptcy Code, or of any statute or rule of law now or
hereafter in effect which gives or purports to give Trustor any right to consent
to or acquiesce in the transfer of the Fee Owner’s interest in the land and the
improvements under any Ground Lease free and clear of such Ground Lease, to
acquiesce in the termination of any Ground Lease or to surrender possession of
the Mortgaged Property in the event of the bankruptcy, reorganization or
insolvency of the Fee Owner or any other party.

       

      (e)           Trustor
warrants and represents to Beneficiary that, as of the date of this Deed of
Trust:  (i) the Ground Lease is in full force and effect in accordance
with its terms, (ii) Trustor has not waived canceled or surrendered any of its
rights under the Ground Lease, (iii) Trustor is the sole owner of, and has good
and marketable title to, the Leasehold Estate and (iv) there is no existing
default under the Ground Lease and no event has occurred which, with the passage
of time or the giving of notice, or both, would constitute a default under the
Ground Lease.

       

      (f)     
      Trustor shall deliver to Beneficiary, within
ten (10) days after Trustor’s receipt, a true and correct copy of each notice,
demand, complaint or request from Fee Owner under, or with respect to, the
Ground Lease and shall promptly notify Beneficiary of any default by Fee Owner
under the Ground Lease that Trustor becomes aware of, in connection with Fee
Owner’s performance and/or observance of Fee Owner’s obligations.

       

      (g)           Trustor
shall (i) pay the rent and all other sums of money due and payable at any time
and from time to time under the Ground Lease as and when such sums become due
and payable, but in any event before the expiration of any grace period provided
in the Ground Lease for the payment of any such sum, and (ii) at all times fully
perform, observe and comply with all other terms, covenants and conditions of
the Ground Lease to be performed, observed or complied with by Trustor as lessee
under the Ground Lease.  If the Ground Lease does not provide for a
grace period for the payment of a sum of money, Trustor shall make the payment
on or before the date on which the payment becomes due and payable.

       

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      (h)           At
any time after Beneficiary receives notice of a default by Trustor under the
Ground Lease, (i) Beneficiary may (but shall not be obligated to do so), make
any payment, perform any obligation and take any other action Trustor would have
the right to pay, perform or take under the Ground Lease which Beneficiary deems
necessary or desirable to cure such default, provided that
Beneficiary is permitted to do so under the terms of the Ground Lease and
(ii) Beneficiary and its authorized agents shall have the right at any time
or from time to time to enter the land and improvements, or any part thereof, to
such extent and as often as Beneficiary, in its discretion, deems necessary or
desirable in order to cure such default, subject to the rights of the tenants
and occupants of the Mortgaged Property.  For purposes of exercising
its rights under this Section, Beneficiary ender shall be fully protected for
any action of taken or omitted to be taken by Beneficiary, in good faith, in
reliance on any written notice from the Fee Owner stating that a default has
occurred and is continuing even though Trustor may question or deny the
existence or nature of such default. All expenditures made by Beneficiary
pursuant to this Section to cure a default shall become an additional part of
the Indebtedness.

       

      (i)       
    Trustor shall not, without the written consent of
Beneficiary, (i) surrender the Leasehold Estate to Fee Owner or terminate
or cancel the Ground Lease, (ii) materially amend, modify or change the
Ground Lease, either orally or in writing, or waive any of Trustor’s rights
under the Ground Lease, (iii) subordinate the Ground Lease or the Leasehold
Estate to any mortgage, deed of trust or other lien on Fee Owner’s fee title to
the leased premises, or (iv) reject or assume the Ground Lease or assign the
Leasehold Estate pursuant to Section 365(h) of the Bankruptcy
Code.

       

      (j)       
    If the Ground Lease is canceled or terminated for any
reason before the natural expiration of its term, and Beneficiary or its
designee obtains from the Fee Owner a new lease in accordance with the term of
the Ground Lease, Trustor shall have no right, title or interest in and to the
new lease or the leasehold estate created by the new lease.

       

      (k)           Trustor
agrees to exercise any option to renew or extend the Ground Lease if at the time
that option becomes exercisable any indebtedness secured by this Deed of Trust
has not been fully paid.  Trustor hereby irrevocably appoints the
Beneficiary as its attorney-in-fact, with full power of substitution, to
exercise any such option on behalf of Trustor if following receipt of written
notice thereof from Beneficiary, Trustor for any reason fails or refuses to
exercise that option at least twenty (20) days prior to the expiration of
the period of time for its exercise.]

       

      THE WRITTEN INSTRUMENTS AND
OTHER DOCUMENTS EVIDENCING, RELATING TO AND SECURING THE SECURED OBLIGATIONS
CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS 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.

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the undersigned executed this Deed of Trust as of the day and
year first hereinabove written.

      

      
        
          
            	
                    TRUSTOR:     [SUBSIDIARY
      GUARANTOR]

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    By:

                  	
                    American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                    By:

                  	
                      

                  
	 
      	 
      	 
      	
                    Name:

                  	
                      

                  
	 
      	 
      	 
      	
                    Title:

                  	
                      

                  

          

        

      

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      Description of the
Property

       

      All that
certain real property, together with all appurtenances thereto and all
improvements now or hereafter located thereon, situated in the City of
___________, County of _______, State of __________, and described as
follows:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              	
                      STATE
      OF _____________

                    	
                      )

                    
	 
      	
                      )

                    
	
                      COUNTY
      OF ___________

                    	
                      )

                    

            

          

        

      

       

      BEFORE
ME, the undersigned authority, on this day personally appeared
______________________________________, the ______________________ of AMERICAN
REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership,
member of [each property owner], a Delaware limited liability company, known to
me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed, in the capacity therein stated, and as the act
and deed of said corporation, member of said limited liability company, and as
the act and deed of said limited liability company.

       

      Given
under my hand and seal this ____ day of ________, 2010.

      

      
        
          	
                    

                
	
                  Notary
      Public In and For

                
	
                  The
      State of _________

                

        

      

       

      Printed
Name:___________________________________________________

       

      My
Commission Expires:__________________________________________

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Exhibit F

     

    Note

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        PROMISSORY
NOTE

         

        Place of
Delivery:  New York, New York

         

        
          	
                  $30,000,000.00

                	
                  Date:  July
      23, 2010

                

        

         

        FOR VALUE
RECEIVED, AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware
limited partnership (the “Company”), promises
to pay to the order of CAPITAL ONE, N.A., a national banking association (the
“Lender”) the
principal amount of THIRTY MILLION AND NO/100 DOLLARS ($30,000,000.00) or, if
less, the aggregate amount of the Loans made by the Lender to the Company
pursuant to the Credit Agreement which is outstanding on the Maturity
Date.  Capitalized terms used but not defined herein are defined in
the Credit Agreement.

         

        The
Company also promises to make principal payments and interest on the unpaid
principal amount hereof from the date hereof until paid at the rates and at the
times which shall be determined in accordance with the provisions of the Credit
Agreement.

         

        All
payments of principal and interest in respect of this Note shall be made in
lawful money of the United States of America in same day funds at the Payment
Office.  Until notified of the transfer of this Note, the Company
shall be entitled to deem the Lender or such person who has
been so identified by the transferor in writing to the Company as the holder of
this Note, as the owner and holder of this Note.  The Lender and any subsequent
holder of this Note agrees that before disposing of this Note, or any part
hereof, it will make a notation hereon of all principal payments previously made
hereunder and of the date to which interest hereon has been paid on the schedule
attached hereto, if any; provided, however, that the
failure to make notation of any payment made on this Note shall not limit or
otherwise affect the obligation of the Company hereunder with respect to
payments of principal or interest on this Note.

         

        This Note
is referred to in, and is entitled to the benefits of, the Credit Agreement
dated as of July 27, 2010 (the “Credit Agreement”)
among the Company, the financial institutions named therein, and CAPITAL ONE,
N.A, as Agent.  The Credit Agreement, among other things,
(i) provides for the making of loans (the “Loans”) by the
Lender to the
Company from time to time in an aggregate amount first above mentioned, the
indebtedness of the Company resulting from each such Loan being evidenced by
this Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for mandatory and
optional prepayments on account of principal hereof and certain principal
payments prior to the maturity hereof upon the terms and conditions therein
specified.

         

        The terms
of this Note are subject to amendment only in the manner provided in the Credit
Agreement.

         

        The
obligation of the Company to pay the principal of and interest on this Note at
the place, at the respective times, and in the currency and manner prescribed by
the Credit Agreement is absolute and unconditional.

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        The
Company promises to pay all costs and expenses, including reasonable attorneys’
fees, incurred in the collection and enforcement of this Note.  The
Company hereby waives diligence, presentment, and protest, and except as
provided in the Credit Agreement, demand and notice of every kind and, to the
full extent permitted by law, the right to plead any statute of limitations as a
defense to any demand hereunder.

         

        This Note
shall be governed by, and construed in accordance with, the laws of the state of
New York without giving effect to its choice of law doctrine.

         

        IN
WITNESS WHEREOF, the Company has caused this Note to be executed and delivered
by its duly authorized officer, as of the date and place first above
written.

         

        
          
            	 
      	
                    AMERICAN
      REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware limited
      partnership

                  
	 
      	 
      
	 
      	
                    By:

                  	
                    American
      Realty Capital Trust Inc., a Maryland corporation, its general
      partner

                  
	 
      	 
      	 
      
	 
      	 
      	
                    By:

                  	 
      
	 
      	 
      	 
      	
                    Name:
      William M. Kahane

                  
	 
      	 
      	 
      	
                    Title:
      President

                  

          

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        TRANSACTIONS
ON NOTE

         

        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Date

                                	 	
                                  Amount of

                                  Loan

                                  Made

                                	 	 	
                                  Amount of

                                  Principal

                                  Paid

                                	 	 	
                                  Principal

                                  Balance

                                	 	 	
                                  Interest

                                  Paid

                                	 	 	
                                  Interest

                                  Paid

                                  Through

                                	 	 	
                                  Notation

                                  Made By

                                	 

                        

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                         

                        
                          
                            
                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                         

                      

                    

                  

                

              

            

          

        

      

    

     

    Exhibit G

     

    Subsidiary
Guaranty

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      SUBSIDIARY
GUARANTY

       

      THIS
SUBSIDIARY GUARANTY (this “Guaranty”), dated as
of dated as of July ___, 2010, is made by each Subsidiary Guarantor named in the
signature pages hereof and each Joinder Guarantor hereafter executing a Joinder
Agreement hereto (each a “Subsidiary Guarantor”
and, collectively, the “Subsidiary
Guarantors”), in favor of Capital One, N.A., a national banking
association, as Agent for the Lenders party to the Credit Agreement referred to
below (in such capacity, the “Agent”).

       

      RECITALS

       

      A.          American
Realty Capital Operating Partnership, L.P., a Delaware limited partnership (the
“Borrower”),
the Lenders from time to time party thereto (each a “Lender” and,
collectively, the “Lenders”) and the
Agent are parties to a Credit Agreement dated as of the date hereof (as amended,
modified, supplemented, extended, renewed or replaced from time to time, the
“Credit
Agreement”).

       

      B.           It
is a condition precedent to the borrowings and issuances of Letters of Credit
under the Credit Agreement that each Subsidiary Guarantor guarantee the
indebtedness and other obligations of the Borrower to the Agent and the Lenders
under or in connection with the Credit Agreement as set forth
herein.  Each Subsidiary Guarantor will receive substantial direct and
indirect benefits from the making of the Loan for the account of the Borrower
pursuant to the Credit Agreement (which benefits are hereby acknowledged by each
Subsidiary Guarantor).

       

      AGREEMENT

       

      Accordingly,
to induce the Agent and the Lenders to enter into the Credit Agreement, and in
consideration thereof, each Subsidiary Guarantor hereby agrees as
follows:

       

      SECTION
1          Definitions;
Interpretation.

       

      (a)           Terms Defined in Credit
Agreement.  Capitalized terms used but not defined herein shall
have the meanings set forth in the Credit Agreement.

       

      (b)           Certain Defined
Terms.  As used in this Guaranty (including in the recitals
hereof), the following terms shall have the following meanings:

       

      “Bankruptcy Code”
means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.).

       

      “Guaranteed
Obligations” has the meaning set forth in Section
2.

       

      “Guarantor Documents”
means this Guaranty, each Collateral Document executed by any Subsidiary
Guarantor, and all other certificates, documents, agreements and instruments
delivered to the Agent or any Lender by any Subsidiary Guarantor under or in
connection with this Guaranty and the Loan Documents.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      “Joinder Guarantor”
has the meaning set forth in Section 24.

       

      “Joinder Agreement” shall
mean a Joinder Agreement in the form of Annex I hereto.

       

      “Loan Party” shall
mean Borrower and any Subsidiary Guarantor.

       

      (c)           Interpretation.  The
rules of interpretation set forth in Sections 1.02
through 1.05 of
the Credit Agreement shall be applicable to this Guaranty and are incorporated
herein by this reference.

       

      SECTION
2          Guaranty.

       

      (a)          
Guaranty.  Each
Subsidiary Guarantor hereby unconditionally and irrevocably guarantees to the
Agent and the Lenders and their respective successors, endorsees, transferees
and assigns, the full and prompt payment when due (whether at stated maturity,
by required prepayment, declaration, acceleration, demand or otherwise) and
performance of the indebtedness, liabilities and other obligations of the
Borrower to the Agent and the Lenders under or in connection with the Credit
Agreement, the Note and the other Loan Documents, including all unpaid principal
of the Loan, all amounts owing in respect of the L/C Obligations, all interest
accrued thereon, all fees due under the Credit Agreement, all indemnification
obligations of the Borrower, and all other amounts payable by the Borrower to
the Agent and the Lenders thereunder or in connection therewith.  The
terms “indebtedness,” “liabilities” and “obligations” are used herein in their
most comprehensive sense and include any and all advances, debts, obligations
and liabilities, now existing or hereafter arising, whether voluntary or
involuntary and whether due or not due, absolute or contingent, liquidated or
unliquidated, determined or undetermined, and whether recovery upon such
indebtedness, liabilities and obligations may be or hereafter become
unenforceable or shall be an allowed or disallowed claim in any insolvency
proceeding, and including interest that accrues after the commencement by or
against any Loan Party or any Affiliate thereof of any Insolvency Proceeding
naming such Person as the debtor in such proceeding.  The foregoing
indebtedness, liabilities and other obligations of the Borrower, and all other
indebtedness, liabilities and obligations to be paid or performed by the
Subsidiary Guarantors in connection with this Guaranty (including any and all
amounts due under Section 15),
shall hereinafter be collectively referred to as the “Guaranteed
Obligations.”

       

      (b)           Acknowledgement of Benefits
received by each Subsidiary Guarantor; Avoidance Provisions.

      

      (i)           Each
Subsidiary Guarantor acknowledges that it has received, or will receive,
significant financial and other benefits, either directly or indirectly, from
the proceeds of the Loan made by the Lenders to the Borrower pursuant to the
Credit Agreement; that the benefits received by such Subsidiary Guarantor are
reasonably equivalent consideration for such Subsidiary Guarantor’s execution of
this Guaranty and the other Loan Documents to which it is a party; and that such
benefits include, without limitation, the access to capital afforded to the
Borrower pursuant to the Credit Agreement from which the Borrower will be able
to support the activities of such Subsidiary Guarantor.  Each
Subsidiary Guarantor is executing this Guaranty and the other Loan Documents in
consideration of those benefits received by it.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      (ii)          It
is the intent of each Subsidiary Guarantor, the Agent and the Lenders that in
any insolvency proceeding, such Subsidiary Guarantor’s maximum obligation
hereunder shall equal, but not exceed, the maximum amount which would not
otherwise cause the Guaranteed Obligations of such Subsidiary Guarantor
hereunder (or any other obligations of such Subsidiary Guarantor to the Agent
and the Lenders under the Loan Documents) to be avoidable or unenforceable
against such Subsidiary Guarantor in such proceeding as a result of applicable
laws, including, without limitation, (A) Section 548 of the Bankruptcy Code
of the United States and (B) any state fraudulent transfer or fraudulent
conveyance act or statute applied in such proceeding, whether by virtue of
Section 544 of the Bankruptcy Code of the United States or
otherwise.  The Laws under which the possible avoidance or
unenforceability of the Guaranteed Obligations of such Subsidiary Guarantor
hereunder (or any other obligations of such Subsidiary Guarantor to the Agent
and the Lenders under the Loan Documents) shall be determined in any such
proceeding are referred to herein as “Avoidance
Provisions”.  Accordingly, to the extent that the obligations
of a Subsidiary Guarantor hereunder would otherwise be subject to avoidance
under the Avoidance Provisions, the maximum Guaranteed Obligations for which
such Subsidiary Guarantor shall be liable hereunder shall be reduced to the
greater of (i) the amount which, as of the time any of the Guaranteed
Obligations are deemed to have been incurred by such Subsidiary Guarantor under
the Avoidance Provisions, would not cause the Guaranteed Obligations of such
Subsidiary Guarantor hereunder (or any other obligations of such Subsidiary
Guarantor to the Agent and the Lenders under the Loan Documents), to be subject
to avoidance under the Avoidance Provisions or (ii) the amount which, as of the
time demand is made hereunder upon such Subsidiary Guarantor for payment on
account of the Guaranteed Obligations, would not cause the Guaranteed
Obligations of such Subsidiary Guarantor hereunder (or any other obligations of
such Subsidiary Guarantor to the Agent and the Lenders under the Loan
Documents), to be subject to avoidance under the Avoidance
Provisions.  The provisions of this Section 2(b) are
intended solely to preserve the rights of the Agent and the Lenders hereunder to
the maximum extent that would not cause the Guaranteed Obligations of any
Subsidiary Guarantor hereunder (or any other obligations of such Subsidiary
Guarantor to the Agent and the Lenders under the Loan Documents) to be subject
to avoidance under the Avoidance Provisions, and no Subsidiary Guarantor or any
other Person shall have any right or claim under this Section 2(b) as
against the Agent and the Lenders that would not otherwise be available to such
Person under the Avoidance Provisions.

      

      SECTION
3         Liability of Subsidiary
Guarantors.  The liability of the Subsidiary Guarantors under
this Guaranty shall be irrevocable, absolute, independent and unconditional, and
shall not be affected by any circumstance which might constitute a discharge of
a surety or guarantor other than the indefeasible payment and performance in
full of all Guaranteed Obligations.  In furtherance of the foregoing
and without limiting the generality thereof, each Subsidiary Guarantor agrees as
follows:

       

      (a)           such
Subsidiary Guarantor’s liability hereunder shall be the immediate, direct, and
primary obligation of such Subsidiary Guarantor and shall not be contingent upon
the Agent’s or any Lender’s exercise or enforcement of any remedy it may have
against the Borrower, any Loan Party or any other Person, or against any
Collateral;

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (b)          this
Guaranty is a guaranty of payment when due and not merely of
collectibility;

       

      (c)          the
Agent and any Lender may enforce this Guaranty while any Event of Default exists
notwithstanding the existence of any dispute between the Agent, any Lender and
any Loan Party with respect to the existence of such Event of
Default;

       

      (d)         such
Subsidiary Guarantor’s payment of a portion, but not all, of the Guaranteed
Obligations shall in no way limit, affect, modify or abridge such Subsidiary
Guarantor’s liability for any portion of the Guaranteed Obligations remaining
unsatisfied.  Without limiting the generality of the foregoing, if the
Agent (or any of the Lenders) is awarded a judgment in any suit brought to
enforce any Subsidiary Guarantor’s covenant to pay, perform or complete a
portion of the Guaranteed Obligations, such judgment shall not be deemed to
release any Subsidiary Guarantor from its covenant to pay, perform or complete
the portion of the Guaranteed Obligations that is not the subject of such suit,
and such judgment shall not, except to the extent satisfied by any such
Subsidiary Guarantor, limit, affect, modify or abridge any other Subsidiary
Guarantor’s liability hereunder in respect of the Guaranteed Obligations;
and

       

      (e)          such
Subsidiary Guarantor’s liability with respect to the Guaranteed Obligations
shall remain in full force and effect without regard to, and shall not be
impaired or affected by, nor shall such Subsidiary Guarantor be exonerated or
discharged by, any of the following events:

       

      (i)           any
Insolvency Proceeding with respect to the Borrower, any other Subsidiary
Guarantor, any other Loan Party or any other Person;

       

      (ii)          any
limitation, discharge, or cessation of the liability of the Borrower, such
Subsidiary Guarantor, any other Loan Party or any other Person for any
Guaranteed Obligations due to any statute, regulation or rule of law, or any
invalidity or unenforceability in whole or in part of any of the Guaranteed
Obligations or the Loan Documents;

       

      (iii)         any
merger, acquisition, consolidation or change in structure of the Borrower, such
Subsidiary Guarantor or any other Loan Party or any other Person, or any sale,
lease, transfer or other disposition of any or all of the assets or ownership
interests in the Borrower, such Subsidiary Guarantor, any other Loan Party or
any other Person;

       

      (iv)        any
assignment or other transfer, in whole or in part, of the Agent’s or any
Lender’s interests in and rights under this Guaranty or the other Loan
Documents, including the Agent’s or any Lender’s right to receive payment of the
Guaranteed Obligations, or any assignment or other transfer, in whole or in
part, of any interests held by the Agent or any Lender in and to any of the
Collateral;

       

      (v)         any
claim, defense, counterclaim or setoff, other than that of prior performance,
that the Borrower, such Subsidiary Guarantor, any other Loan Party or other
Person may have or assert, including any defense of incapacity or lack of
corporate or other authority to execute any of the Loan Documents;

       

      (vi)        the
Agent’s or any Lender’s amendment, modification, renewal, extension,
cancellation or surrender of any Loan Document, any Guaranteed Obligations, or
any Collateral, or the Agent’s or any Lender’s exchange, release, or waiver of
any Collateral;

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (vii)       the
Agent’s or any Lender’s exercise or non-exercise of any power, right or remedy
with respect to any of the Collateral, including the Agent’s or any Lender’s
compromise, release, settlement or waiver with or of the Borrower, any other
Loan Party or any other Person;

       

      (viii)      the
Agent’s or any Lender’s vote, claim, distribution, election, acceptance, action
or inaction in any Insolvency Proceeding related to the Guaranteed
Obligations;

       

      (ix)         any
impairment or invalidity of any of the Collateral or any other collateral
securing any of the Guaranteed Obligations or any failure to perfect any of the
Liens of the Agent and the Lenders thereon or therein; and

       

      (x)          any
other guaranty, whether by such Subsidiary Guarantor, the REIT, any other Loan
Party or any other Person, of all or any part of the Guaranteed Obligations or
any other indebtedness, obligations or liabilities of the Borrower or any other
Loan Party to the Agent and the Lenders.

       

      SECTION
4         Consents of Subsidiary
Guarantors.  Each Subsidiary Guarantor hereby unconditionally
consents and agrees that, without notice to or further assent from such
Subsidiary Guarantor:

       

      (a)         the
principal amount of the Guaranteed Obligations may be increased or decreased and
additional obligations of the Borrower and the Loan Parties under the Loan
Documents may be incurred, by one or more amendments, modifications, renewals or
extensions of any Loan Document or otherwise;

       

      (b)         the
time, manner, place or terms of any payment under any Loan Document may be
extended or changed by written agreement between the Borrower and Agent,
including by an increase or decrease in the interest rate on any Guaranteed
Obligation or any fee or other amount payable under such Loan
Document;

       

      (c)          the
time for the Borrower’s, any other Loan Party’s or any other Person’s
performance of or compliance with any term, covenant or agreement on its part to
be performed or observed under any Loan Document may be extended, or such
performance or compliance waived, or failure in or departure from such
performance or compliance consented to, all in such manner and upon such terms
as the Agent and the Lenders may deem proper;

       

      (d)         the
Agent and the Lenders may discharge or release, in whole or in part, the
Borrower for the payment and performance of all or any part of the Guaranteed
Obligations or any other Loan Party from payment and performance of its
obligations under the Loan Documents, and may permit or consent to any such
action or any result of such action, and shall not be obligated to demand or
enforce payment upon any of the Collateral or any other collateral, nor shall
the Agent and the Lenders be liable to the Subsidiary Guarantors for any failure
to collect or enforce payment or performance of the Guaranteed Obligations from
any Person or to realize on the Collateral or other collateral
therefor;

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (e)          in
addition to the Collateral, the Agent and the Lenders may take and hold other
security (legal or equitable) of any kind, at any time, as collateral for the
Guaranteed Obligations, and may, from time to time, in whole or in part,
exchange, sell, surrender, release, subordinate, modify, waive, rescind,
compromise or extend such security and may permit or consent to any such action
or the result of any such action, and may apply such security and direct the
order or manner of sale thereof;

       

      (f)          the
Agent and the Lenders may request and accept other guaranties of the Guaranteed
Obligations and any other indebtedness, obligations or liabilities of the
Borrower or any other Loan Party to the Agent and the Lenders and may, from time
to time, in whole or in part, surrender, release, subordinate, modify, waive,
rescind, compromise or extend any such guaranty and may permit or consent to any
such action or the result of any such action; and

       

      (g)         the
Agent and the Lenders may exercise, or waive or otherwise refrain from
exercising, any other right, remedy, power or privilege (including the right to
accelerate the maturity of any Loan and any power of sale) granted by any Loan
Document or other security document or agreement, or otherwise available to the
Agent or any Lender, with respect to the Guaranteed Obligations or any of the
Collateral, even if the exercise of such right, remedy, power or privilege
affects or eliminates any right of subrogation or any other right of the
Subsidiary Guarantors against the Borrower or any other Loan Party;

       

      all as
the Agent and the Lenders may deem advisable, and all without impairing,
abridging, releasing or affecting this Guaranty.

       

      SECTION
5        Subsidiary Guarantor
Waivers.

       

      (a)          Certain
Waivers.  Each Subsidiary Guarantor waives and agrees not to
assert:

       

      (i)           any
right to require the Agent and the Lenders to marshal assets in favor of the
Borrower, such Subsidiary Guarantor, any other Loan Party or any other Person,
to proceed against the Borrower, any other Loan Party or any other Person, to
proceed against or exhaust any of the Collateral, to give notice of the terms,
time and place of any public or private sale of personal property security
constituting the Collateral or other collateral for the Guaranteed Obligations
or comply with any other provisions of §9-611 of the New York UCC (or any
equivalent provision of any other applicable laws) or to pursue any other right,
remedy, power or privilege of the Agent and the Lenders whatsoever;

       

      (ii)          the
defense of the statute of limitations in any action hereunder or for the
collection or performance of the Guaranteed Obligations;

       

      (iii)         any
defense arising by reason of any lack of corporate or other authority or any
other defense of the Borrower, such Subsidiary Guarantor, any other Loan Party
or any other Person;

       

      (iv)        any
defense based upon the Agent’s or any Lender’s errors or omissions in the
administration of the Guaranteed Obligations, excluding, however, acts or
omissions constituting the gross negligence or willful misconduct of the Agent
or such Lender; and

       

      (v)         any
rights to setoffs and counterclaims.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      (b)         Additional
Waivers.  Each Subsidiary Guarantor waives any and all notice
of (i) the acceptance of this Guaranty, (ii) the creation, renewal,
modification, extension or accrual of the Guaranteed Obligations, (iii) the
reliance by the Agent and the Lenders upon this Guaranty or (iv) the exercise of
any right, power or privilege hereunder.  The Guaranteed Obligations
shall conclusively be deemed to have been created, contracted, incurred and
permitted to exist in reliance upon this Guaranty.  Each Subsidiary
Guarantor waives promptness, diligence, presentment, protest, demand for
payment, notice of default, dishonor or nonpayment and all other notices to or
upon the Borrower, such Subsidiary Guarantor, any other Loan Party or any other
Person with respect to the Guaranteed Obligations.

       

      (c)          Independent
Obligations.  The Guaranteed Obligations of each Subsidiary
Guarantor hereunder are independent of and separate from the obligations of the
Borrower and any other Loan Party (including any other Subsidiary Guarantor
hereunder) and upon the occurrence and during the continuance of any Event of
Default, a separate action or actions may be brought against such Subsidiary
Guarantor, whether or not the Borrower or any such other Loan Party is joined
therein or a separate action or actions are brought against the Borrower or any
such other Loan Party.

       

      (d)         Disclosure of Financial
Condition of Borrower and Other Loan Parties/Other
Information.  No Subsidiary Guarantor shall have any right to
require the Agent and the Lenders to obtain or disclose any information with
respect to:  (i) the financial condition or character of the
Borrower, any Loan Party, the ability of the Borrower to pay and perform the
Guaranteed Obligations or the ability of any other Loan Party to pay or perform
its obligations under the Loan Documents; (ii) the Guaranteed Obligations;
(iii) the Collateral; (iv) the existence or nonexistence of any other
guarantees of all or any part of the Guaranteed Obligations; (v) any action
or inaction on the part of the Agent, the Lenders or any other Person; or
(vi) any other matter, fact or occurrence whatsoever.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      SECTION
6        Subsidiary Guarantors’
Rights of Subrogation, Contribution, Etc.; Impairment of Subrogation
Rights.

       

      (a)          Subrogation and
Contribution.  Each Subsidiary Guarantor hereby waives, until
the later of (i) the Guaranteed Obligations (other than contingent
indemnification obligations for which no demand has been made) shall have been
indefeasibly paid, performed and completed in full, and (ii) the Loan to
the Borrower and all other amounts due from the Borrower and all other Loan
Parties under the Loan Documents have been indefeasibly paid in full and the
Commitments have been terminated, any claim, right or remedy, direct or
indirect, that any Subsidiary Guarantor now has or may hereafter have against
the Borrower, any other guarantor (including any other Subsidiary Guarantor
hereunder) or any other Loan Party or any of the assets of the Borrower, any
other guarantor (including any other Subsidiary Guarantor hereunder) or any
other Loan Party in connection with this Guaranty or the performance by such
Subsidiary Guarantor of its obligations hereunder, in each case whether such
claim, right or remedy arises in equity, under contract, by statute, under
common law or otherwise and, including without limitation, (A) any right of
subrogation, reimbursement or indemnification that such Subsidiary Guarantor now
has or may hereafter have against the Borrower, any other guarantor (including
any other Subsidiary Guarantor hereunder) or any other Loan Party, (B) any
right to enforce, or to participate in, any claim, right or remedy that the
Agent or any Lender now has or may hereafter have against the Borrower, any
other guarantor (including any other Subsidiary Guarantor hereunder) or any
other Loan Party, and (C) any benefit of, and any right to participate in,
any Collateral or security now or hereafter held by or on behalf of the Agent
and the Lenders.  In addition, until the Loan and Credit Extensions to
the Borrower has been indefeasibly paid in full and the Commitments have been
terminated, each Subsidiary Guarantor shall withhold exercise of any right of
contribution which such Subsidiary Guarantor may have against any other
guarantor of the Loan (including any other Subsidiary Guarantor hereunder), any
other Loan Party or the Guaranteed Obligations, but thereafter may seek
contribution from any other guarantor (including any other Subsidiary Guarantor
hereunder) of the Loan and Credit Extensions to the Borrower but subject to any
applicable terms and conditions set forth in the Contribution Agreement or any
other Loan Party.  Each Subsidiary Guarantor further agrees that, to
the extent the waiver or agreement to withhold the exercise of its right of
subrogation, reimbursement, indemnification and contribution as set forth herein
is found by a court of competent jurisdiction to be void or voidable for any
reason, any rights of subrogation, reimbursement or indemnification such
Subsidiary Guarantor may have against the Borrower, any other guarantor
(including any other Subsidiary Guarantor hereunder) or any other Loan Party or
against any Collateral or other security shall be junior and subordinate to any
rights the Agent and the Lenders may have against the Borrower and the other
Loan Parties or guarantors and, to all right, title and interest the Agent and
the Lenders may have in any such Collateral or other security, and any rights of
contribution that such Subsidiary Guarantor may have against any such other Loan
Party or guarantor (including any other Subsidiary Guarantor hereunder), shall
be junior and subordinate to any right the Agent and the Lenders may have
against such other Loan Party or guarantor.  If any amount shall be
paid to such Subsidiary Guarantor on account of any such subrogation,
reimbursement, indemnification or contribution rights at any time when
(I) all Guaranteed Obligations (other than contingent indemnification
obligations for which no demand has been made) shall not have been paid,
performed and completed in full, (II) the outstanding Loan and Credit
Extensions to the Borrower and all other amounts due from the Borrower under the
Loan Documents shall not have been paid in full, or (III) the Commitments
shall not have been fully terminated, such amount shall be held in trust for the
Agent (on behalf of the Lenders) and shall forthwith be paid over to the Agent
(on behalf of the Lenders) to be credited and applied against the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms
hereof.

       

      (b)          Impairment of Subrogation
Rights.  Each Subsidiary Guarantor agrees that, upon the
occurrence of an Event of Default, the Agent may elect to foreclose either
nonjudicially or judicially against any real or personal property Collateral
(including, without limitation, any of the Borrowing Base Properties) securing
the Guaranteed Obligations, or any part thereof, or accept an assignment of any
such Collateral in lieu of foreclosure, or compromise or adjust any part of such
obligations, or make any other accommodation with the Borrower, any
other Loan Party or any other guarantor (including any other Subsidiary
Guarantor hereunder), or exercise any other remedy against the Borrower, any
other Loan Party, any other guarantor, or any Collateral.  Except to
the extent the Guaranteed Obligations are indefeasibly paid, performed,
completed in full and satisfied thereby, no such action by the Agent or any
Lender will release or limit the liability of such Subsidiary Guarantor to the
Agent and the Lenders, and such Subsidiary Guarantor shall remain liable under
this Guaranty after such action, even if the effect of that action is to deprive
such Subsidiary Guarantor of the right to collect reimbursement from the Borrower, any
other Loan Party, any other guarantor (including any other Subsidiary Guarantor
hereunder) or any other Person for any sums paid to the Agent or any Lender or
such Subsidiary Guarantor’s rights of subrogation, contribution, or indemnity
against the Borrower, any other Loan Party, any other guarantor (including any
other Subsidiary Guarantor hereunder) or any other Person.  Without
limiting the foregoing, it is understood and agreed that, on any foreclosure or
assignment in lieu of foreclosure of any Collateral held by the Agent, such
Collateral will no longer exist, and that any right that such Subsidiary
Guarantor might otherwise have, on full payment of the Guaranteed Obligations by
such Subsidiary Guarantor to the Agent or any Lender to participate in any such
Collateral or to be subrogated to any rights of the Agent or any Lender with
respect to any such Collateral will be nonexistent; nor shall such Subsidiary
Guarantor be deemed to have any right, title, interest or claim under any
circumstances in or to any real or personal property held by the Agent or any
third party following any foreclosure or assignment in lieu of foreclosure of
any such Collateral.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (c)          Further
Agreements.  Without limiting any of the other waivers and
provisions set forth in this Guaranty, each Subsidiary Guarantor hereby
intentionally, freely, irrevocably and unconditionally agrees as
follows:

       

      (i)           such
Subsidiary Guarantor waives all rights and defenses that such Subsidiary
Guarantor may have because the Guaranteed Obligations are secured by real
property; this means, among other things:  (A) the Agent and the
Lenders may collect from such Subsidiary Guarantor without first foreclosing on
any real or personal property Collateral pledged by the Borrower, any other
guarantor (including any other Subsidiary Guarantor hereunder), or any other
Loan Party; and (B) if the Agent or the Lenders foreclose on any real property
Collateral pledged by the Borrower, any other guarantor (including any other
Subsidiary Guarantor hereunder) or any other Loan Party: (I) the amount of
the Guaranteed Obligations may be reduced only by the price for which that
Collateral is sold at the foreclosure sale, even if the Collateral is worth more
than the sale price; and (II) the Agent and the Lenders may collect from
such Subsidiary Guarantor even if the Agent, by foreclosing on the real property
Collateral, has destroyed any right such Subsidiary Guarantor may have to
collect from the Borrower, any other guarantor (including any other Subsidiary
Guarantor hereunder), or any other Loan Party.  This is an
unconditional and irrevocable waiver of any rights and defenses such Subsidiary
Guarantor may have because the Guaranteed Obligations are secured by real
property; and

       

      (ii)          such
Subsidiary Guarantor waives all rights and defenses arising out of an election
of remedies by the Agent and the Lenders, even though that election of remedies,
such as a nonjudicial foreclosure with respect to security for the Guaranteed
Obligations, has destroyed such Subsidiary Guarantor’s rights of subrogation and
reimbursement against the principal or any other Person.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      SECTION
7         Subordination.

       

      (a)          Indebtedness.  Any
indebtedness or other obligations of the Borrower or any other Loan Party now or
hereafter held by any Subsidiary Guarantor is hereby subordinated in right of
payment to the Loans and to the payment, performance and completion of the
Guaranteed Obligations, and any such indebtedness of the Borrower or any other
Loan Party to such Subsidiary Guarantor collected or received by such Subsidiary
Guarantor after an Event of Default exists shall be held in trust for the Agent
(on behalf of the Lenders) and shall forthwith be paid over to the Agent (on
behalf of the Lenders) to be credited and applied against the Guaranteed
Obligations but without affecting, impairing or limiting in any manner the
liability of such Subsidiary Guarantor under any other provision of this
Guaranty.

       

      (b)          Right to
Payments.  Each Subsidiary Guarantor hereby subordinates all
rights to payment and otherwise under any management agreements, leasing
agreements, technical service contracts, or other service contracts to which it
is a party or may become a party in the future relating to any real property
owned by any Subsidiary Guarantor, Borrower or any other Loan Party (the “Property
Agreements”), to the payment, performance and completion of the
Guaranteed Obligations, except that if no Event of Default exists, such
Subsidiary Guarantor shall be entitled to accept and receive regularly scheduled
payments and other payments in accordance with the terms of such Property
Agreements.  During the existence of an Event of Default, and until
such Event of Default is cured, such Subsidiary Guarantor shall not make, accept
or receive any payments under any Property Agreement, and in the event that such
payments are received by such Subsidiary Guarantor, such payments shall be held
in trust for the benefit of the Agent and the Lenders and shall be paid over or
delivered to the Agent to be credited and applied against the Guaranteed
Obligations.  Each Subsidiary Guarantor acknowledges that, upon, or at
any time after an Event of Default and continuance thereof, the Agent has the
right to terminate any Property Agreement, in which event such Subsidiary
Guarantor shall resign as manager or service provider thereunder effective upon
the date set forth in the Agent’s notice, and such Subsidiary Guarantor agrees
not to look to the Agent or any Lender for payment of any accrued but unpaid
fees relating to such Property Agreement accruing prior to any notice of
termination, and such Subsidiary Guarantor hereby further agrees that it shall
fully cooperate with the Agent in providing such services or management as the
Agent deems necessary between the effective date of any such termination and the
date upon which a replacement manager and/or service provider has been retained
with respect to the services covered under such Property Agreement.

       

      SECTION
8         Continuing
Guaranty.  This Guaranty is a continuing guaranty and agreement
of subordination relating to any Guaranteed Obligations, including Guaranteed
Obligations which may exist continuously or which may arise from time to time
under successive transactions, and each Subsidiary Guarantor expressly
acknowledges that this Guaranty shall remain in full force and effect
notwithstanding that there may be periods in which no Guaranteed Obligations
exist.  This Guaranty shall continue in effect and be binding upon the
Subsidiary Guarantors until termination of the Commitments and payment and
performance in full of the Guaranteed Obligations.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      SECTION
9         Payments.

       

      (a)          Agreement to
Pay.  Each Subsidiary Guarantor jointly and severally hereby
agrees, in furtherance of the foregoing provisions of this Guaranty and not in
limitation of any other right which the Agent or any Lender or any other Person
may have against such Subsidiary Guarantor by virtue hereof, upon the failure of
the Borrower or any Loan Party to pay any of the Guaranteed Obligations when and
as the same shall become due, whether at stated maturity, by required
prepayment, declaration, acceleration, demand or otherwise (including amounts
that would become due but for the operation of the automatic stay under §362(a)
of the Bankruptcy Code), such Subsidiary Guarantor shall forthwith pay, or cause
to be paid, in cash, to the Agent an amount equal to the amount of the
Guaranteed Obligations then due as aforesaid (including interest which, but for
the filing of a petition in any Insolvency Proceeding with respect to the
Borrower or any other Loan Party, would have accrued on such Guaranteed
Obligations, whether or not a claim is allowed against the Borrower or such
other Loan Party for such interest in any such Insolvency
Proceeding).  Such Subsidiary Guarantor shall make each payment
hereunder, unconditionally in full without setoff, counterclaim or other
defense, on the day when due in Dollars, in immediately available funds, to the
Agent at such office of the Agent and to such account as the Agent shall specify
in writing to such Subsidiary Guarantor.

       

      (b)          Tax
Gross-Up.  Each Subsidiary Guarantor represents and warrants
that it is organized and resident in the United States of
America.  Each Subsidiary Guarantor shall make all payments hereunder
without setoff or counterclaim and free and clear of and without deduction for
any taxes, levies, imposts, duties, charges, fees, deductions, withholdings,
compulsory loans, restrictions or conditions of any nature now or hereafter
imposed or levied by any jurisdiction or any political subdivision thereof or
taxing or other authority therein (other than excluded taxes) unless such
Subsidiary Guarantor is compelled by law to make such deduction or
withholding.  If any such obligation (other than one arising with
respect to taxes based on or measured by the income or profits of the Agent or
any Lender) is imposed upon such Subsidiary Guarantor with respect to any amount
payable by it hereunder, such Subsidiary Guarantor will pay to the Agent, for
the benefit of the Agent or such Lender, on the date on which such amount is due
and payable hereunder, to the extent the Borrower would be liable under the
Credit Agreement to pay the same with respect to the equivalent amount payable
by it thereunder, such additional amount in Dollars as shall be necessary to
enable the Agent or such Lender to receive the same net amount which the Agent
or such Lender would have received on such due date had no such obligation been
imposed upon such Subsidiary Guarantor, to the extent Borrower would be
obligated to make such payment as set forth in Article III of the
Credit Agreement, as if such requirements were applicable to such Subsidiary
Guarantor hereunder.  Such Subsidiary Guarantor will deliver promptly
to the Agent certificates or other valid vouchers for all taxes or other charges
deducted from or paid with respect to payments made by such Subsidiary Guarantor
hereunder.

       

      (c)          Application of
Payments.  Any payments by any Subsidiary Guarantor hereunder
the application of which is not otherwise provided for herein, shall be applied
in the order specified in Section 2.08 of the
Credit Agreement.

       

      (d)          Exercise of Setoff
Rights.  To the extent that any payment by or on behalf of the
Borrower or any other Loan Party is made to the Agent or any Lender, or the
Agent or any Lender exercises its right of setoff pursuant to Section 16 hereof,
and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by the Agent or
any Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any insolvency proceeding or otherwise, then to the
extent of such recovery, the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (e)          Maximum
Rate.  Notwithstanding anything to the contrary contained
herein or in the other Guarantor Documents, the interest paid or agreed to be
paid hereunder and under the other Guarantor Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable laws (the “Maximum
Rate”).  If the Agent or any Lender shall receive interest in
an amount that exceeds the Maximum Rate, the excess interest shall be applied to
the principal of the Guaranteed Obligations or, if it exceeds such unpaid
principal, refunded to the applicable Subsidiary Guarantor.  In
determining whether the interest contracted for, charged, or received by the
Agent or any Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Laws, (i) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (ii) exclude
voluntary prepayments and the effects thereof, and (iii) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Guaranteed Obligations
hereunder.

       

      (f)           Survival.  The
agreements in this Section 9 shall
survive the termination of the Aggregate Commitment and the repayment,
satisfaction or discharge of all of the Guaranteed Obligations.

       

      SECTION
10       Representations and
Warranties.  Each Subsidiary Guarantor represents and warrants
to the Agent and the Lenders that:

       

      (a)          Organization and
Powers.  Such Subsidiary Guarantor is (i) is duly
organized or formed, validly existing and, as applicable, in good standing under
the laws of the jurisdiction of its organization, (ii) has all requisite
power and authority and all requisite governmental licenses, authorizations,
consents and approvals to (y) own or lease its assets and carry on its
business and (z) execute, deliver and perform its obligations under the
Guarantor Documents to which it is a party, and (iii) is duly qualified and
is licensed and, as applicable, in good standing under the laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license; except in each
case referred to in clause (ii)(y) or (z), to the extent that failure to do
so could not reasonably be expected to have a Material Adverse
Effect.

       

      (b)          Authorization; No
Conflict. The execution, delivery and performance by such Subsidiary
Guarantor of each Guarantor Document to which it is a party have been duly
authorized by all necessary corporate or other organizational action, and do not
and will not (i) contravene the terms of any of such Subsidiary Guarantor’s
Organization Documents; (ii) conflict with or result in any breach or
contravention of, or the creation of any Lien under (other than Liens created
under any of the Loan Documents), or require any payment to be made under
(x) any Contractual Obligation to which such Subsidiary Guarantor is a
party or affecting such Subsidiary Guarantor or the properties of such
Subsidiary Guarantor or any of its Subsidiaries in any material respects or
(y) any order, injunction, writ or decree of any Governmental Authority or
any arbitral award to which such Subsidiary Guarantor or its property is
subject; or (iii) violate any law.

       

      (c)          Governmental Authorizations;
No Consents.  No approval, consent, exemption, authorization,
or other action by, or notice to, or filing with, any Governmental Authority or
any other Person is necessary or required in connection with (i) the execution,
delivery or performance by, or enforcement against, the Subsidiary Guarantor of
this Guaranty or any other Guarantor Document, or (ii) the exercise by the Agent
or any Lender of its rights under the this Guaranty or the remedies in respect
of the Guaranteed Obligations.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (d)          Binding
Obligation.  This Guaranty has been, and the other Guarantor
Documents, when executed and delivered by such Subsidiary Guarantor, will have
been, duly executed and delivered by such Subsidiary Guarantor.  This
Guaranty constitutes, and each other Guarantor Document to which such Subsidiary
Guarantor is a party when so executed and delivered will constitute, a legal,
valid and binding obligation of such Subsidiary Guarantor, enforceable against
such Subsidiary Guarantor in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

       

      (e)          Solvency.  Immediately
prior to and after and giving effect to the incurrence of such Subsidiary
Guarantor’s obligations under this Guaranty, such Subsidiary Guarantor is and
will be Solvent.

       

      (f)          Consideration.  Such
Subsidiary Guarantor has received at least “reasonably equivalent value” (as
such phrase is used in §548 of the Bankruptcy Code and in comparable provisions
of other applicable Laws) and more than sufficient consideration to support its
obligations hereunder in respect of the Guaranteed Obligations and under any of
the Guarantor Documents to which it is a party.

       

      (g)         Independent
Investigation.  Such Subsidiary Guarantor hereby acknowledges
that it has undertaken its own independent investigation of the financial
condition of the Borrower and each other Loan Party and all other matters
pertaining to this Guaranty and the other Guarantor Documents, and further
acknowledges that it is not relying in any manner upon any representation or
statement of the Agent or any Lender with respect thereto.  Such
Subsidiary Guarantor represents and warrants that it has received and reviewed
copies of the Loan Documents and that it is in a position to obtain, and it
hereby assumes full responsibility for obtaining, any additional information
concerning the financial condition of the Borrower and each other Loan Party and
any other matters pertinent hereto that such Subsidiary Guarantor may
desire.  Such Subsidiary Guarantor is not relying upon or expecting
the Agent or any Lender to furnish to such Subsidiary Guarantor any information
now or hereafter in the Agent’s or such Lender’s possession concerning the
financial condition of the Borrower or any other Loan Party, or any other
matter.

      

      SECTION
11      Reporting
Covenant.  So long as any Guaranteed Obligations shall remain
unpaid or unsatisfied, any Letter of Credit shall remain outstanding or any
Lender shall have any Commitment, each Subsidiary Guarantor agrees that it shall
furnish to the Agent:  (a) prompt written notice of any condition
or event which has resulted, or that could reasonably be expected to result, in
a Material Adverse Effect; and (b) such other information respecting the
operations, properties, business or condition (financial or otherwise) of such
Subsidiary Guarantor as the Agent, at the request of any Lender, may from time
to time reasonably request.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      SECTION
12      Additional Affirmative
Covenants.  So long as any Guaranteed Obligations shall remain
unpaid or unsatisfied, any Letter of Credit shall remain outstanding or any
Lender shall have any Commitment, each Subsidiary Guarantor agrees
that:

       

      (a)          Preservation of Existence,
Etc.  Such Subsidiary Guarantor shall (i) preserve, renew and
maintain in full force and effect its legal existence and good standing under
the laws of the jurisdiction of its organization; and (ii) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises
necessary or desirable in the normal conduct of its business, except to the
extent that failure to do so individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect.

       

      (b)          Further Assurances and
Additional Acts.  Such Subsidiary Guarantor shall execute,
acknowledge, deliver, file, notarize and register at its own expense all such
further agreements, instruments, certificates, documents and assurances and
perform such acts as the Agent shall deem necessary or appropriate to effectuate
the purposes of this Guaranty and the other Guarantor Documents, and promptly
provide the Agent with evidence of the foregoing satisfactory in form and
substance to the Agent.

       

      (c)          Credit Agreement
Covenants.  Such Subsidiary Guarantor shall observe, perform
and comply with all covenants applicable to the Subsidiary Guarantor set forth
in Articles VI
and VII of the
Credit Agreement that by their terms the Borrower is required to cause such
Subsidiary Guarantor, as a “Subsidiary”, a “Subsidiary Guarantor”, or an
“Affiliate”, to observe, perform and comply with, as if such covenants were set
forth in full herein.

       

      (d)          Governmental
Consents.  Such Subsidiary Guarantor shall maintain all
authorizations, consents, approvals, licenses, exemptions of, or filings or
registrations with, any Governmental Authority, or approvals or consents of any
other Person, required in connection with this Guaranty or any other Guarantor
Documents, except to the extent that failure to maintain such authorizations,
consents, approvals, licenses, exemptions of or filings or registrations with
such Governmental Authority or other Person would not reasonably be expected to
have a Material Adverse Effect.

       

      SECTION
13      Notices.  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 telecopier, in the case of each Subsidiary Guarantor,
to the address or telecopier number specified on the signature page hereof, and
in the case of the Agent and the Lenders, to the addresses or telecopier numbers
specified in the Credit Agreement.  Notices sent by hand or overnight
courier service, or mailed by certified or registered mail, shall be deemed to
have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business
hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).  Each of the
Subsidiary Guarantors, the Agent and the Lenders may change its address or
telecopier number for notices and other communications hereunder by providing
notice of such change to the other parties.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      SECTION
14      No Waiver; Cumulative
Remedies.  No failure by the Agent or any Lender to exercise,
and no delay by any such Person in exercising, any right, remedy, power or
privilege hereunder or under any other Guarantor Document shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The
rights, remedies, powers and privileges herein or therein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

       

      SECTION
15       Costs and Expenses; Waiver
of Consequential Damages; Etc.

       

      (a)          Costs and
Expenses.  If any suit or other proceeding is instituted by the
Agent (on behalf of the Lenders) to enforce this Guaranty (or any portion
hereof), each Subsidiary Guarantor, jointly and severally, shall pay, upon
demand, all of the costs and expenses (including, without limitation, reasonable
attorneys’ fees and disbursements) incurred by the Agent and/or the Lenders, in
each case to the extent provided in Section 10.04 of the
Credit Agreement; provided, however, that such costs and expenses shall not be
in duplication of any costs and expenses paid by the Borrower or any other Loan
Party.  The obligations of each Subsidiary Guarantor under this Section 15(a) shall
survive the expiration, release or termination of this Guaranty.

       

      (b)          Waiver of Consequential
Damages, Etc.  To the fullest extent permitted by applicable
laws, no Subsidiary Guarantor shall assert, and each Subsidiary Guarantor hereby
waives, any claim against the Agent or any Lender, 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
Guaranty, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof.  None of the Agent, any L/C
Issuer or any Lender shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission systems
in connection with this Guaranty or the other Loan Documents or the transactions
contemplated hereby or thereby.

       

      (c)          Interest. Any amounts
payable by the Subsidiary Guarantor under this Section 15 or
otherwise under this Guaranty or under the other Guarantor Documents, if not
paid upon demand shall bear interest from the date of such demand until paid in
full, at a fluctuating interest rate per annum at all times equal to the Default
Rate applicable to Base Rate Loans to the fullest extent permitted by applicable
laws.  Any such interest shall be due and payable upon demand and
shall be calculated on the basis of a year of 365 or 366 days, as the case may
be, and the actual number of days elapsed.

       

      (d)          Payment. All amounts
due under this Section 15 shall
be payable within ten (10) Business Days after demand therefor.

       

      (e)          Survival.  The
agreements in this Section 15 shall
survive the resignation of the Agent or any L/C Issuer, the replacement of any
Lender, the termination of the Aggregate Commitment and the repayment,
satisfaction or discharge of the Guaranteed Obligations.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      SECTION
16      Right of Setoff. If
an Event of Default shall have occurred and be continuing, each Lender, each L/C
Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, after obtaining the prior written consent of the Agent,
to the fullest extent permitted by applicable laws, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in
whatever currency) at any time held and other obligations (in whatever currency)
at any time owing by such Lender, such L/C Issuer or any such Affiliate to or
for the credit or the account of each Subsidiary Guarantor against any and all
of the Guaranteed Obligations of the Subsidiary Guarantors now or hereafter
existing under this Guaranty or any other Guarantor Document to such Lender or
such L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer
shall have made any demand under this Guaranty or any other Loan Document and
although such obligations of such Subsidiary Guarantor may be contingent or
unmatured or are owed to a branch or office of such Lender or such L/C Issuer
different from the branch or office holding such deposit or obligated on such
indebtedness.  The rights of each Lender, each L/C Issuer and their
respective Affiliates under this Section are in addition to other rights and
remedies (including other rights of setoff) that such Lender, such L/C Issuer or
their respective Affiliates may have.  Each Lender and each L/C Issuer
shall notify the affected Subsidiary Guarantor and the Agent promptly after any
such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and
application.

       

      SECTION
17      Benefits of
Guaranty.  This Guaranty is entered into for the sole
protection and benefit of the Agent, the Lenders and their respective successors
and assigns, and no other Person (other than any Participant under the Credit
Agreement) shall be a direct or indirect beneficiary of, or shall have any
direct or indirect cause of action or claim in connection with, this
Guaranty.  The Agent and the Lenders, by their acceptance of this
Guaranty, shall not have any obligations under this Guaranty to any Person other
than (a) the Subsidiary Guarantors, and (b) the Agent (or any sub-agent
thereof) and any L/C Issuer, and such obligations shall be limited to those
expressly stated herein.

       

      SECTION
18       Binding Effect;
Assignment.

       

      (a)          Binding
Effect.  This Guaranty shall be binding upon each Subsidiary
Guarantor and its successors and assigns, and inure to the benefit of and be
enforceable by the Agent, each Lender and their respective successors,
endorsees, transferees and assigns.

       

      (b)          Assignment.  No
Subsidiary Guarantor shall have the right to assign or transfer its rights and
obligations hereunder or under any other Guarantor Documents without the prior
written consent of the Lenders.  Each Lender may, without notice to or
consent by any Subsidiary Guarantor, sell, assign, transfer or grant
participations in all or any portion of such Lender’s rights and obligations
hereunder and under the other Guarantor Documents in connection with any sale,
assignment, transfer or grant of a participation by such Lender in accordance
with Section 10.08 of
the Credit Agreement of or in its rights and obligations thereunder and under
the other Loan Documents.  In the event of any grant of a
participation, the Participant to the extent permitted by law shall be deemed to
have a right of setoff under Section 16 in
respect of its participation to the same extent as if it were a secured
party.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      SECTION
19       Governing Law; Jurisdiction;
Etc.

       

      (a)          GOVERNING
LAW.  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW, EXCEPT FOR THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATION LAW TO THE EXTENT THAT IT MANDATES THAT THE LAW OF THE STATE
OF NEW YORK SHALL GOVERN.

       

      (b)          SUBMISSION TO
JURISDICTION.  EACH SUBSIDIARY GUARANTOR IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK,
AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER GUARANTOR DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH SUBSIDIARY GUARANTOR
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, IN SUCH FEDERAL
COURT.  EACH SUBSIDIARY GUARANTOR AGREES THAT A FINAL JUDGMENT IN ANY
SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW.  NOTHING IN THIS GUARANTY SHALL AFFECT ANY RIGHT THAT THE AGENT
OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO
THIS GUARANTY OR ANY OTHER GUARANTOR DOCUMENT AGAINST ANY SUBSIDIARY GUARANTOR
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

       

      (c)          WAIVER OF
VENUE.  EACH SUBSIDIARY GUARANTOR IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER GUARANTOR
DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS
SECTION.  EACH SUBSIDIARY GUARANTOR HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

       

      (d)          SERVICE OF
PROCESS.  EACH SUBSIDIARY GUARANTOR IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 13.  NOTHING
IN THIS GUARANTY WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY APPLICABLE LAWS.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      

      SECTION
20      Waiver of Jury
Trial.  EACH SUBSIDIARY GUARANTOR, THE AGENT AND EACH LENDER
(BY ITS ACCEPTANCE HEREOF) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAWS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
GUARANTY OR ANY OTHER GUARANTOR DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH
SUBSIDIARY GUARANTOR, THE AGENT AND EACH LENDER (BY ITS ACCEPTANCE
HEREOF) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER.  EACH SUBSIDIARY GUARANTOR ACKNOWLEDGES THAT THE AGENT AND THE
LENDERS HAVE BEEN INDUCED TO ACCEPT THIS GUARANTY BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

      

      SECTION
21      No Advisory or Fiduciary
Responsibility.  In connection with all aspects of each
transaction contemplated by the Loan Documents, each Subsidiary Guarantor
acknowledges and agrees that: (i) the credit facilities provided for under
the Credit Agreement and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other
modification of any Loan Document) are an arm’s-length commercial transaction
between the Borrower, the Subsidiary Guarantors, the other Loan Parties and
their respective Affiliates, on the one hand, and the Agent, on the other hand,
and each Subsidiary Guarantor is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions
contemplated by the Loan Documents (including any amendment, waiver or other
modification thereof); (ii) in connection with the process leading to such
transaction, the Agent is and has been acting solely as a principal and is not
the financial advisor, agent or fiduciary, for the Borrower, the Subsidiary
Guarantors, any other Loan Party or any of the respective Affiliates,
stockholders, creditors or employees or any other Person; (iii) the Agent
has not assumed and will not assume an advisory, agency or fiduciary
responsibility in favor of the Borrower, the Subsidiary Guarantors or any other
Loan Party with respect to any of the transactions contemplated hereby or the
process leading thereto, including with respect to any amendment, waiver or
other modification of any Loan Document (irrespective of whether the Agent has
advised or is currently advising the Borrower, the Subsidiary Guarantors, any
other Loan Party or any of their respective Affiliates on other matters) and the
Agent has no obligation to the Borrower, the Subsidiary Guarantors, any other
Loan Party or any of their respective Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth in
the Loan Documents; (iv) the Agent and its Affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of the
Borrower, the Subsidiary Guarantors, the other Loan Parties and their respective
Affiliates, and the Agent has no obligation to disclose any of such interests by
virtue of any advisory, agency or fiduciary relationship; and (v) the Agent
has not provided and will not provide any legal, accounting, regulatory or tax
advice with respect to any of the transactions contemplated hereby (including
any amendment, waiver or other modification of any Loan Document) and each
Subsidiary Guarantor has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate.  Each Subsidiary
Guarantor hereby waives and releases, to the fullest extent permitted by law,
any claims that it may have against the Agent with respect to any breach or
alleged breach of agency or fiduciary duty.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      SECTION
22      Amendments and
Waivers.  This Guaranty shall not be amended except by written
agreement of the Subsidiary Guarantors, the Agent and, if required under Section 10.01 of
the Credit Agreement, certain of the Lenders.  No waiver of any rights
of the Agent or any Lender under any provision of this Guaranty or consent to
any departure by any Subsidiary Guarantor therefrom shall be effective unless in
writing and signed by the Agent and, if required under Section 10.01 of
the Credit Agreement, certain of the Lenders.  Any such amendment,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

       

      SECTION
23       Severability.  If
any provision of this Guaranty or the other Guarantor Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and enforceability
of the remaining provisions of this Guaranty and the other Guarantor Documents
shall not be affected or impaired thereby and (b) the parties shall endeavor in
good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable
provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

       

      SECTION
24       Future Subsidiary
Guarantors; Released Subsidiary Guarantors.

       

      (a)          At
such time following the date hereof as any Subsidiary that owns a Borrowing Base
Property (a “Joinder
Guarantor”) is required to accede hereto pursuant to the terms of Section 2.16 or 6.20 of the Credit
Agreement, such Joinder Guarantor shall execute and deliver to the Agent a
joinder agreement substantially in the form of Annex 1 (the “Joinder Agreement”),
signifying its agreement to be bound by the provisions of this Guaranty as a
Subsidiary Guarantor to the same extent as if such Joinder Guarantor had
originally executed this Guaranty as of the date hereof.  Each of the
other Subsidiary Guarantors hereby consents to the execution and delivery of
such Joinder Agreement without any further notice or consent of such Subsidiary
Guarantor.

       

      (b)          If
any Subsidiary Guarantor is entitled to be released from its obligations
hereunder pursuant to Section 2.16 of the
Credit Agreement, then, in accordance with the Credit Agreement, such Subsidiary
Guarantor shall be deemed released from its obligations hereunder and each of
the other Subsidiary Guarantors hereby consents to such release without any
further notice or consent of such Subsidiary Guarantor.

       

      SECTION
25      Counterparts; Integration;
Effectiveness.  This Guaranty may be executed in counterparts
(and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  This Guaranty and the other Guarantor Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof.  Except as provided in
Section 4.01 of
the Credit Agreement, this Guaranty shall become effective as to any Subsidiary
Guarantor when the Agent shall have its executed counterparts hereof (or, with
respect to a Joinder Guarantor, when the Agent shall have received an executed
counterpart of such Joinder Guarantor’s Joinder Agreement).  Delivery
of an executed counterpart of a signature page of this Guaranty by telecopy
shall be effective as delivery of a manually executed counterpart of this
Guaranty.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      SECTION
26      Survival of Representations
and Warranties.  All representations and warranties made
hereunder and in any other Guarantor Document or other document delivered
pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof.  Such representations
and warranties have been or will be relied upon by the Agent and each Lender,
regardless of any investigation made by the Agent or any Lender or on their
behalf, and shall continue in full force and effect as long as any Loan or any
other Guaranteed Obligation shall remain unpaid or unsatisfied or any Letter of
Credit shall remain outstanding.

       

      SECTION
27      USA PATRIOT Act
Notice.  Each Lender that is subject to the Act (as hereinafter
defined) and the Agent (for itself and not on behalf of any Lender) by its
acceptance hereof hereby notifies each Subsidiary Guarantor 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”), it is required
to obtain, verify and record information that identifies such Subsidiary
Guarantor, which information includes the name and address of such Subsidiary
Guarantor and other information that will allow such Lender or the Agent, as
applicable, to identify such Subsidiary Guarantor in accordance with the
Act.

       

      SECTION
28       Time is of the
Essence.  Time is of the essence of this Guaranty and the other
Guarantor Documents.

       

      SECTION
29       State Specific
Provisions.  In the event of any inconsistencies between this
Section 29 and
any of the other terms and provisions of this Guaranty, the terms and conditions
of this Section
29 shall control and be binding.  [ADD STATE SPECIFIC
PROVISIONS]

      

      [Remainder
of page intentionally left blank.]

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, each Subsidiary Guarantor has executed this Guaranty, as of the
date first above written.

       

      
        
          
            	 
      	
                    [EACH
      SUBSIDIARY GUARANTOR]

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                  
	 
      	 
      	 
      
	 
      	 
      	
                    By:

                  	
                    American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                  
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                    By:

                  	 
      
	 
      	 
      	 
      	
                    Name:

                  	 
      
	 
      	 
      	 
      	
                    Title:

                  	 
      

          

        

      

       

      [Signature
Page to Subsidiary Guaranty]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Annex
1

      to
the Guaranty

      

      FORM
OF JOINDER AGREEMENT

      

      
        	
                To:

              	
                Capital
      One, N.A., as Agent

              

      

      

      
        	
                Re:

              	
                American
      Realty Capital Operating Partnership,
L.P.

              

      

      

      Date:      _________________

      

      Ladies
and Gentlemen:

      

      This Joinder Agreement (“Joinder Agreement”) is made
and delivered pursuant to (i) Section 6.20 of that
certain Credit Agreement dated as of July ___, 2010 (as amended, modified,
supplemented, extended, renewed or replaced from time to time, the “Credit Agreement”), by and
among American Realty Capital Operating Partnership, L.P., a Delaware limited
partnership (the “Borrower”), the Lenders from
time to time party thereto (each a “Lender” and, collectively, the
“Lenders”) and the
Agent, and (ii) Section 24 of that
certain Subsidiary Guaranty dated as of July ___, 2010 (as amended, modified,
supplemented, extended, renewed or replaced from time to time, the “Guaranty”), made by each
Subsidiary Guarantor named in the signature pages thereof (each a “Subsidiary Guarantor”), in
favor of the Agent and the Lenders.  All capitalized terms used in
this Joinder Agreement and not otherwise defined herein shall have the meanings
assigned to them in either the Guaranty or (if not defined therein) in the
Credit Agreement, as applicable.

      

      The undersigned,
___________________________ [insert name of acceding Subsidiary
Guarantor], a _____________________ [partnership, limited liability
company, etc.], is a Subsidiary and an owner of one or more Borrowing
Base Properties, and hereby acknowledges for the benefit of the Agent and the
Lenders that it shall be a “Subsidiary Guarantor” for all purposes of the
Guaranty, and assumes all of the liabilities, duties and obligations of a
Subsidiary Guarantor thereunder, effective from the date hereof, jointly and
severally with all other Subsidiary Guarantors.  The undersigned
hereby agrees it will perform all of the obligations of a Subsidiary Guarantor
under, and to be bound in all respects by the terms of, the Guaranty to the same
extent and with the same force and effect as if the undersigned were an original
signatory thereto.  Additionally, the undersigned expressly consents
to, ratifies and adopts for itself, all of the waivers set forth in the
Guaranty, including without limitation, those set forth in Sections 5 and 6 of the
Guaranty.

      

      The
undersigned confirms that the representations and warranties set forth in Section 10 of
the Guaranty are true and correct as to the undersigned as of the date
hereof.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

      Without limiting the foregoing, as of
the date of this Joinder Agreement, the undersigned represents and warrants to
the Agent and the Lenders, that after taking into account the benefits received
by the undersigned from the Credit Agreement and the [Contribution Agreement] to
which the undersigned is concurrently herewith becoming a party pursuant to an
accession agreement thereto: (i) the Guaranty (A) does not render the
undersigned insolvent, (B) does not result in the property remaining with the
undersigned being unreasonably small capital and (C) does not result in debts of
the undersigned being beyond the undersigned’s ability to pay as such debts
mature, and (ii) based on reasonable assumptions, the undersigned projects that
it will be able to continue to conduct its business operations as currently
conducted.

      

      Additionally, the undersigned hereby
agrees to observe, perform and comply with all covenants applicable to the
undersigned set forth in Articles VI and VII of the Credit
Agreement that by their terms the Borrower is required to cause the undersigned,
as a “Subsidiary”, a “Subsidiary Guarantor”, or an “Affiliate”, to observe,
perform and comply with, as if such covenants were set forth in full
herein.

      

      This Joinder Agreement shall constitute
a Loan Document under the Credit Agreement.  The address for the
undersigned for purposes of all notices and communications is the address set
forth on the signature page hereof.

      

      THIS JOINDER AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW, EXCEPT FOR THE PROVISIONS OF
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW TO THE EXTENT THAT IT
MANDATES THAT THE LAW OF THE STATE OF NEW YORK SHALL GOVERN.

      

      THE UNDERSIGNED IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK,
AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS JOINDER OR ANY OTHER GUARANTOR DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND THE UNDERSIGNED IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, IN SUCH FEDERAL
COURT.  THE UNDERSIGNED AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW.  NOTHING IN THIS JOINDER AGREEMENT SHALL AFFECT ANY RIGHT THAT
THE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS JOINDER AGREEMENT OR ANY OTHER GUARANTOR DOCUMENT AGAINST THE
UNDERSIGNED OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

      THE UNDERSIGNED IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS JOINDER OR ANY OTHER GUARANTOR
DOCUMENT IN ANY COURT REFERRED TO ABOVE.  THE UNDERSIGNED HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING
IN ANY SUCH COURT.

      

      THE UNDERSIGNED IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 13 OF THE
GUARANTY.  NOTHING IN THIS JOINDER WILL AFFECT THE RIGHT OF ANY PARTY
HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE
LAWS.

      

      [Signature
appears on the next page.]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

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

      

      
        	 
      	
                [SUBSIDIARY
      GUARANTOR]

              
	 
      	 
      
	 
      	
                By:  ______________________________

              
	 
      	
                Name:_____________________________

              
	 
      	
                Title:______________________________

              

      

       

      
        	 
      	
                Address:

              
	 
      	
                c/o
      American Realty Capital Trust Inc.

              
	 
      	
                405
      Park Avenue, 15th
      Floor

              
	 
      	
                New
      York, New York 10022

              
	 
      	
                Attn.:  ______________________________

              
	 
      	
                Telecopier
      No.  _______________________

              

      

      
        
           

        

        
          S-1

          
            

          

        

        
           

        

      

     

    Exhibit H

     

    Compliance
Certificate

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      FORM
OF COMPLIANCE CERTIFICATE

       

      Financial
Statement Date: ______, ____

      To:           Capital
One, N.A., as Agent

      

      
        Ladies
and Gentlemen:

      

       

      Reference
is made to that certain Credit Agreement, dated as of July ___, 2010 (as
amended, modified, supplemented, extended, renewed or replaced from time to
time, the “Credit
Agreement;” the terms defined therein being used herein as therein
defined), among American Realty Capital Operating Partnership, L.P., a Delaware
limited partnership (the “Borrower”), the
Lenders from time to time party thereto, and Capital One, N.A., a national
banking association, as Agent.

       

      The
undersigned Responsible Officer hereby certifies as of the date hereof that
he/she is the ______________________________ of the Borrower, and that, as such,
he/she is authorized to execute and deliver this Certificate to the Agent on the
behalf of the Borrower, and that:

       

      [Use
following paragraph 1 for fiscal year-end financial
statements]

       

      1.           The
Borrower has delivered the year-end consolidated financial statements of
Borrower, the REIT and their Subsidiaries required by Section 6.01(a) of
the Credit Agreement for the fiscal year ended as of the above date, together
with the report and opinion of an independent certified public accountant
required by such section.

       

      [Use
following paragraph 1 for fiscal quarter-end financial
statements]

       

      1.           The
Borrower has delivered the consolidated financial statements of Borrower, the
REIT and their Subsidiaries required by Section 6.01(b) of
the Credit Agreement for the fiscal quarter ended as of the above
date.  Such financial statements fairly present the financial
condition, results of operations and cash flows of Borrower, the REIT and their
Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of
footnotes.

       

      2.           The
undersigned has reviewed and is familiar with the terms of the Credit Agreement
and has made, or has caused to be made under his/her supervision, a detailed
review of the transactions and condition (financial or otherwise) of Borrower,
the REIT and their Subsidiaries during the accounting period covered by such
financial statements.

       

      3.           A
review of the activities of Borrower, the REIT and their Subsidiaries during
such fiscal period has been made under the supervision of the undersigned with a
view to determining whether during such fiscal period Borrower, the REIT and
their Subsidiaries performed and observed all their Obligations under the Loan
Documents, and

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      [select
one:]

       

      [to
the best knowledge of the undersigned, during such fiscal period the REIT, the
Borrower and their Subsidiaries performed and observed each covenant and
condition of the Loan Documents applicable to it, and no Default has occurred
and is continuing.]

       

      —or—

       

      [to
the best knowledge of the undersigned, during such fiscal period the following
covenants or conditions have not been performed or observed and the following is
a list of each such Default and its nature and status:]

       

      4.           The
representations and warranties of the Borrower contained in Article V of the
Credit Agreement, and any representations and warranties of the Borrower and any
Subsidiary Guarantor that are contained in any document furnished at any time
under or in connection with the Loan Documents, are true and correct on and as
of the date hereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this
Compliance Certificate, the representations and warranties contained in Section 5.08 of the
Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to Section 6.01 of the
Credit Agreement, including the statements in connection with which this
Compliance Certificate is delivered.

       

      5.           The
financial covenant analyses and information set forth on Schedule 1 attached
hereto are true and accurate on and as of the date of this Compliance
Certificate.

       

      6.           The
Borrowing Base compliance calculations and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this Compliance
Certificate.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the
undersigned has executed this Compliance Certificate as of ___________,
_______.

      

      
        
          	 
      	
                  BORROWER

                
	 
      	 
      
	 
      	
                  AMERICAN
      REALTY CAPITAL OPERATING PARTNERSHIP, L.P.,

                
	 
      	
                  a
      Delaware limited partnership

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  AMERICAN
      REALTY CAPITAL TRUST INC., a Maryland corporation,

                
	 
      	 
      	
                  its
      general partner

                
	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	 
      
	 
      	 
      	 
      	
                  Name:

                
	 
      	 
      	 
      	
                  Title:

                

        

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      American
Realty Capital Trust Inc.

      

      SCHEDULE
1

      to the
Compliance Certificate1

      ($ in
000’s)

      

      
        Statement
Date:  _________ ___, 20___

      

       

      
        
          
            	
                    I.

                  	
                    Section
      7.16(a) – Minimum Tangible Net Worth.

                  	
                    $_____________

                  
	 
      	 
      	 
      
	
                    II.

                  	
                    Section
      7.16(b) – Debt-to-Total Assets.

                  	
                    $______________

                  
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    Outstanding
      Indebtedness:

                  	
                    $______________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    B.

                  	
                    Total
      Asset Value

                  	
                    $______________

                  
	 
      	 
      	 
      
	
                    III.

                  	
                    Section
      7.16(c) – Liquidity

                  	
                    $______________

                  
	 
      	 
      	 
      
	
                    IV.

                  	
                    Section
      7.16(d) – Consolidated Debt Yield.

                  	
                    _____%

                  
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    Consolidated
      Net Operating Income:

                  	
                    $______________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    B.

                  	
                    Total
      Indebtedness:

                  	
                    $______________

                  
	 
      	 
      	 
      
	
                    V.

                  	
                    Section
      7.16(e) – Collateral Debt Yield.

                  	
                    _____%

                  
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    Net
      Operating Income:

                  	
                    $______________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    B.

                  	
                    Outstanding
      Amount:

                  	
                    $______________

                  
	 
      	 
      	 
      
	
                    VI.

                  	
                    Section
      7.16(f) –Debt Service Coverage Ratio.

                  	
                    _____%

                  
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    12-Month
      Rolling Cash Flow:

                  	
                    $______________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    B.

                  	
                    Pro
      Forma Debt Service:

                  	
                    $______________

                  
	 
      	 
      	 
      
	
                    VII.

                  	
                    Section
      7.16(g) – Interest Rate Exposure.

                  	
                    _____%

                  
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    Unhedged
      Interest Exposure:

                  	
                    $______________

                  
	 	 	 	 
	 
      	
                    B.

                  	
                    Total
      Mortgage Indebtedness:

                  	
                    $______________

                  

          

        

      

       

        
          

        

      

      1The
summary references herein to defined terms and component parts thereof are
qualified by reference to the complete definitions of such terms as set forth in
the Credit Agreement.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      For the
Quarter/Year ended ___________________(“Statement
Date”)

      

      SCHEDULE
2

      to the
Compliance Certificate

      Borrowing
Base Compliance

      ($ in
000’s)

       

      
        
          
            	
                    I.

                  	
                    Collateral
      Value Amount

                  	 
      
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    Property/Most
      Recent Appraised Value

                  	 
      
	 
      	 
      	 
      	 
      
	 
      	
                     

                  	
                    1.           ____________________

                  	
                    $
      ____________

                  
	 
      	
                     

                  	
                    2.           ____________________

                  	
                    $
      ____________

                  
	 
      	
                     

                  	
                    3.           Total:

                  	
                    $
      ____________

                  
	 
      	 
      	 
      	 
      
	
                    II.

                  	
                    Borrowing
      Base

                  	 
      
	 
      	 
      	 
      
	 
      	
                    A.

                  	
                    Total
      Collateral Value Amount

                  	
                    $
      ____________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    B.

                  	
                    Total
      Investment Grade Collateral Value Amount

                  	
                    $
      ____________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    C.

                  	
                    Total
      Non-Investment Grade Collateral Value Amount

                  	
                    $
      ____________

                  
	 
      	 
      	 
      	 
      
	 
      	
                    D.

                  	
                    Borrowing
      Base

                  	
                    $
      ____________

                  

          

        

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

     

    Exhibit I

     

    Assignment
and Acceptance

     

    (immediately
follows)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
AND ASSUMPTION

     

    This
Assignment and Assumption (this “Assignment and
Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between the Assignor identified in item 1 below (“Assignor”) and the
Assignee identified in item 2 below (“Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below (the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the
Assignee.  The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and
made a part of this Assignment and Assumption as if set forth herein in
full.

     

    For an
agreed consideration, Assignor hereby irrevocably sells and assigns to the
Assignee, and Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the Agent as
contemplated below (i) all of the Assignor’s rights and obligations in its
capacity as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below
(including, without limitation, the Letters of Credit and the Loans included in
such facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned by the Assignor to the Assignee pursuant to
clauses (i) and (ii) above being referred to herein collectively as the “Assigned
Interest”).  Each such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

     

    
      
        
          
            
              
                	
                        1.

                      	
                        Assignor:

                      	
                        ______________________________

                      
	 
      	 
      	 
      
	 
      	 
      	
                        ______________________________

                      
	 
      	 
      	 
      
	
                        2.

                      	
                        Assignee:

                      	
                        ______________________________

                      
	 
      	 
      	 
      
	 
      	 
      	
                        ______________________________

                      
	 
      	 
      	 
      
	
                        3.

                      	
                        Borrower(s):      
      American Realty Capital Operating Partnership, L.P.

                      
	 
      	 
      
	
                        4.

                      	
                        Agent: Capital One, N.A., as the
      agent under the Credit
Agreement

                      

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          
            	
                    5.

                  	
                    Credit
      Agreement:    Credit
      Agreement, dated as of July ____, 2010, among Borrower, the Lenders from
      time to time party thereto, and Capital One, N.A., as Agent, L/C Issuer,
      and Lender

                  

          

        

      

    

     

    
      	
              6.

            	
              Assigned
      Interest:

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  Assignor

                                                	 	
                                                  Assignee

                                                	 	 	
                                                  Facility

                                                  Assigned

                                                	 	 	
                                                  Aggregate

                                                  Amount of

                                                  Commitment/

                                                  Loans

                                                  for all Lenders

                                                	 	 	
                                                  Amount of

                                                  Commitment/

                                                  Loans

                                                  Assigned

                                                	 	 	
                                                  Percentage

                                                  Assigned of

                                                  Commitment/

                                                  Loans

                                                	 	 	
                                                  CUSIP

                                                  Number

                                                	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                   

                                                	 	 	 	 	 	 	 	 	 	$	  	 	 	$	 	 	 	 	 	%	 	 	 	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
              7.

            	
              Trade
      Date:

            	
              __________________

            

    

     

    Effective
Date: __________________, 20__ [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE
EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

     

    The terms
set forth in this Assignment and Assumption are hereby agreed to:

     

    
      
        
          
            
              
                
                  	 
      	
                          ASSIGNOR

                        
	 
      	 
      
	 
      	
                          [NAME
      OF ASSIGNOR]

                        
	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      	 
      
	 
      	
                          Name:

                        	 
      
	 
      	 
      	 
      
	 
      	
                          Title:

                        	 
      
	 
      	 
      	 
      
	 
      	
                          BY:

                        	 
      
	 
      	 
      	
                          TITLE:

                        
	 
      	 
      	 
      
	
                          ASSIGNEE

                        	 
      	
                          [NAME
      OF ASSIGNEE]

                        
	 	 	 
	 
      	 
      	
                          By:
      _____________________________

                        
	 
      	 
      	
                                
      Title:

                        

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Consented
to and Accepted:

     

    CAPITAL
ONE, N.A., as

      Administrative
Agent

     

    By:
_________________________________

          Title:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
1 TO ASSIGNMENT AND ASSUMPTION

     

    STANDARD
TERMS AND CONDITIONS FOR

     

    ASSIGNMENT
AND ASSUMPTION

     

    1.         Representations and
Warranties.

     

    1.1.      Assignor.  Assignor
(a) represents and warrants that (i) it is the legal and beneficial owner of the
Assigned Interest, (ii) Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim and (iii) it has full power and authority,
and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b)
assumes no responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

     

    1.2.      Assignee.  Assignee
(a) represents and warrants that (i) it has full power and authority, and has
taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become
a Lender under the Credit Agreement, (ii) it meets all the requirements to be an
assignee under Section
10.08 of the Credit Agreement, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is sophisticated with respect to
decisions to acquire assets of the type represented by the Assigned Interest and
either it, or the Person exercising discretion in making its decision to acquire
the Assigned Interest, is experienced in acquiring assets of such type, (v) it
has received a copy of the Credit Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial
statements delivered pursuant to Section 6.01 thereof, as applicable, and such
other documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest, (vi) it has, independently and without reliance
upon the Agent or any other Lender and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to enter
into this Assignment and Assumption and to purchase the Assigned Interest, and
(vii) if it is a Foreign Lender, attached hereto is any documentation required
to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee; and (b) agrees that (i) it shall,
independently and without reliance upon the Agent, the Assignor or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Documents, and (ii) it shall perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.         Payments.  From
and after the Effective Date, the Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to the Assignee for amounts which have accrued from and after
the Effective Date.

     

    3.           General
Provisions.  This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns.  This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed counterpart of a signature page
of this Assignment and Assumption by telecopy shall be effective as delivery of
a manually executed counterpart of this Assignment and
Assumption.  This Assignment and Assumption shall be governed by, and
construed in accordance with, the law of the State of New York.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit J

     

    Solvency
Certificate

     

    (immediately
follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
         

        SOLVENCY
CERTIFICATE

        (SUBSIDIARY
GUARANTOR)

         

        Reference
is made to (i) that certain Credit Agreement, dated as of July 27, 2010, among
American Realty Capital Operating Partnership, L.P., a Delaware limited
partnership, as Borrower, the lenders from time to time party thereto, and
Capital One, N.A., a national banking association, as Agent (as amended,
modified, supplemented, extended, renewed or replaced from time to time, the
“Credit
Agreement”) and (ii) that certain Subsidiary Guaranty, dated as of August
___, 2010, by and among the Subsidiaries party thereto (as amended, modified,
supplemented, extended, renewed or replaced from time to time, the “Subsidiary
Guaranty”).  Capitalized terms used but not defined herein
shall have the meanings set forth in the Credit Agreement.

         

        This
certificate is being given in connection with the addition of a Nominated
Property as a Borrowing Base Property pursuant to Section 2.16 of the Credit
Agreement.  Each of the undersigned certifies that he or she is a
Responsible Officer of the Subsidiary on whose behalf he or she is signing this
Solvency Certificate below, and makes this certificate in his or her capacity as
such Responsible Officer, and not in a personal or individual
capacity.  Each of the undersigned, in such capacity, further
certifies, that both before and after giving effect to the addition of the
Nominated Property as a Borrowing Base Property, and giving effect to the
Guaranteed Obligations (as defined in the Subsidiary Guaranty) of such Guarantor
existing under the Subsidiary Guaranty and after giving effect to the execution,
delivery and performance of such Guarantor of the Subsidiary Guaranty, the
Mortgage and the other Loan Documents to which it is a party, as of the date
hereof, as follows:

         

        1.           The
fair value of the property of such Subsidiary is greater than the total amount
of liabilities, including contingent liabilities, of such
Subsidiary;

         

        2.           The
present fair salable value of the assets of such Subsidiary is not less than the
amount that will be required to pay the probable liability of such Subsidiary on
its debts as they become absolute and matured;

         

        3.           Such
Subsidiary does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Subsidiary’s ability to pay such debts and liabilities
as they mature;

         

        4.           Such
Subsidiary is not engaged in business or a transaction, and is not about to
engage in business or a transaction, for which such Subsidiary’s property would
constitute an unreasonably small capital; and

         

        5.           Such
Subsidiary is able to pay its debts and liabilities, contingent obligations and
other commitments as they mature in the ordinary course of
business.

         

        
          [REMAINDER OF PAGE
LEFT BLANK.

        

        
          SIGNATURES APPEAR ON
FOLLOWING PAGE.]

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        

         

        IN
WITNESS WHEREOF, each of the undersigned has executed this Solvency Certificate
effective as of August ____, 2010.

         

        AMERICAN
REALTY CAPITAL OPERATING PARTNERSHIP, L.P.,

        a
Delaware limited partnership

         

          
By:           AMERICAN
REALTY CAPITAL TRUST INC., a Maryland corporation, its general
partner

         

        
          
            	
                     
      

                  	
                    By:

                  	 	 

          

        

        
          
          

        

        
          
            	
                     
      

                  	
                    Its:

                  	 	 

          

        

         

        
          
            	
                     
      

                  	
                    By:

                  	 	 

          

        

        
          	
                   
      

                	
                  Its:

                	 	 

        

         

        
          
          

           

        

        ARC
BFBENAR001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

         

        By: 
_________________________________ 

         

        Name:
________________________________

         

        Title: 
________________________________

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        ARC
BFGRJCO001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

         

        
          By: 
_________________________________ 

           

          Name:
________________________________

           

          Title: 
________________________________

        

        

         

         

        ARC
BFWCHKS001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

         

        
          By: 
_________________________________ 

           

          Name:
________________________________

           

          Title: 
________________________________

        

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        ARC
BFBRGLA001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

         

         

        ARC
BFAUSTX001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        ARC
BFPRLTX001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

        

         

         

        ARC
IHBUFGA001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        ARC
IHHHDSC001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

        

         

         

        ARC
JJPLYMA001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        ARC
JJWATNJ001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

        

         

         

        ARC
JJAMHNY001, LLC, a Delaware limited liability company

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

                

        

         

         

        
          	
                   
      

                	
                  By:

                	
                  American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

                

        

         

        
           

          
            By: 
_________________________________ 

             

            Name:
________________________________

             

            Title: 
________________________________

          

        

         

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

    

     

    Exhibit K

     

    Contribution
Agreement

     

    (immediately
follows)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    CONTRIBUTION
AGREEMENT

     

    This
CONTRIBUTION AGREEMENT (this “Contribution Agreement”) is
entered into as of July ___, 2010 by and among each Subsidiary Guarantor named
in the signature pages hereof and each Acceding Guarantor (as defined herein)
hereafter executing an Accession Agreement hereto (each a “Subsidiary Guarantor”, and
collectively, the “Subsidiary
Guarantors”).

     

    RECITALS

     

    WHEREAS,
American Realty Capital Operating Partnership, L.P., a Delaware limited
partnership (the “Borrower”), the lenders from
time to time party thereto (the “Lenders”), and Capital One,
N.A., a national banking association, as agent for the Lenders (the “Agent”) are parties to a
Credit Agreement dated as of the date hereof (as amended, modified,
supplemented, extended, renewed or replaced from time to time, the “Credit Agreement”); and,
except as otherwise herein expressly provided, all terms defined in the Credit
Agreement are being used herein as defined therein);

     

    WHEREAS,
pursuant to the Credit Agreement, the Lenders will be making a Loan and other
extensions of credit to the Borrower, which Loan and extensions of credit are
(i) evidenced by, and repayable with interest thereon, in accordance with the
Credit Agreement and Note executed by the Borrower as of the date hereof and
(ii) guaranteed by, among other things, that certain Subsidiary Guaranty dated
as of the date hereof executed by the Subsidiary Guarantors (the “Subsidiary Guaranty”); which
Subsidiary Guaranty is secured by, among other things, the Mortgages executed
from time to time by certain Subsidiary Guarantors with respect to the Borrowing
Base Properties owned by such Subsidiary Guarantors;

     

    WHEREAS,
each Subsidiary Guarantor is directly or indirectly owned by, or affiliated
with, Borrower;

     

    WHEREAS,
each Subsidiary Guarantor will receive direct and indirect benefits from the
availability of the Loan and the extensions of credit to the Borrower under the
Credit Agreement;

     

    WHEREAS,
the Subsidiary Guarantors desire to allocate certain direct and indirect
benefits they will obtain from the availability of the Loan and the extensions
of credit to the Borrower for purposes of providing a fair and equitable
arrangement to make contributions when payments are made by any Subsidiary
Guarantor under, or property of any Subsidiary Guarantor is realized for
application to any obligations under, the Subsidiary Guaranty or any Mortgage
(such Subsidiary Guarantor making such payments or to which such contributions
are attributable, a “Funding
Guarantor”) in an amount which is disproportionate to the direct benefits
obtained by such Subsidiary Guarantor, as further described herein;
and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS,
as a condition precedent to the making of the Loan and the extensions of credit
to the Borrower and the execution and delivery of the Loan Documents, the Agent
and the Lenders have required each Subsidiary Guarantor to execute and deliver
this Contribution Agreement.

     

    NOW,
THEREFORE, in consideration of the premises and the covenants hereinafter
contained, and to induce each Subsidiary Guarantor to enter into the Subsidiary
Guaranty, it is agreed as follows.

     

    1.           Funded
Amount.  For purposes of this Contribution Agreement, the
“Funded Amount” paid by
any Funding Guarantor as of any date of determination shall
be:  (a) the Dollar amount of any cash payments paid by such
Funding Guarantor under the Subsidiary Guaranty as of such date, plus
(b) the value of any Borrowing Base Property owned or ground leased by such
Funding Guarantor (based on the Appraised Value) and realized upon pursuant to
the Mortgage encumbering such Borrowing Base Property as of such date, whether
through foreclosure sale or otherwise.  The “Aggregate Funded Amount” as of
any date of determination shall mean the sum of the Funded Amounts paid by all
of the Funding Guarantors as of such date.

     

    2.           Contribution.  Each
Subsidiary Guarantor shall be responsible for funding its Pro Rata Share (as
hereinafter defined) of the Aggregate Funded Amount paid or contributed by all
of the Funding Guarantors.  As used herein, “Pro Rata Share” shall mean,
with respect to each Subsidiary Guarantor as of the date of determination, the
ratio of (a) the Appraised Value of each Borrowing Base Property of such
Subsidiary Guarantor as of such date to (b) the aggregate Appraised Value of the
Borrowing Base Properties as of such date (including, for the purposes of
calculation, the value of any Borrowing Base Property of any Subsidiary
Guarantor (based on the Appraised Value) that was realized upon pursuant to the
Mortgage encumbering such Borrowing Base Property).  In the event
that, as of any date of determination, any Funding Guarantor shall have paid or
contributed a Funded Amount that is more than its Pro Rata Share of the
Aggregate Funded Amount paid or contributed as of such date (including, without
limitation, through the realization upon its Borrowing Base Property, whether
through foreclosure or otherwise) (any such payment or realization is referred
to herein as an “Excess
Payment”), then such Funding Guarantor shall be entitled to contribution
from, and to be reimbursed on demand (subject to Section 5 below) by,
the other Subsidiary Guarantors for the amount of such Excess Payment, in the
manner and to the extent set forth in this Contribution Agreement.  In
the event an Excess Payment is made by one or more Funding Guarantors with
respect to the payment of the Aggregate Funded Amount, each Subsidiary Guarantor
who has not funded some or all of (whether in cash or through realization upon
its property) its Pro Rata Share of the Aggregate Funded Amount shall be
obligated to do so on demand in an amount equal to its Pro Rata Share of the
Aggregate Funded Amount which remains unpaid by such Subsidiary Guarantor
(subject to Section
5 below) (such payment, a “Contribution
Payment”).  The aggregate of all Contribution Payments from all
Subsidiary Guarantors who have not funded some or all of their Pro Rata Share of
the Aggregate Funded Amount (whether in cash or through realization upon its
property) shall be allocated proportionately among the Funding Guarantors so
that the aggregate of all Contribution Payments shall be sufficient to repay
each Funding Guarantor the amount of its Excess Payment.  Any amount
payable as a contribution under this Contribution Agreement shall be determined
as of the date on which the related payment or contribution (i.e., the Excess
Payment) is made by a Funding Guarantor.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    3.           Preservation of
Rights.  This Contribution Agreement shall not limit any right
which any Subsidiary Guarantor may have against any other Person which is not a
party hereto.

     

    4.           No
Impairment.  This Contribution Agreement is intended only to
define the relative rights of the Subsidiary Guarantors, and nothing set forth
in this Contribution Agreement is intended to or shall impair the obligations of
the Borrower or the REIT under the Loan Documents or the obligations of each
Subsidiary Guarantor to pay and perform such Subsidiary Guarantor’s obligations
under the Subsidiary Guaranty or any Mortgage to which such Subsidiary Guarantor
is a party as and when the same shall become due and payable in accordance with
the terms of such documents.

     

    5.           Subordination.

     

    (a)          General.  Until
such time as the Loan and the other Obligations under the Credit Agreement and
the other Loan Documents shall be indefeasibly paid in full in accordance with
the terms of the Loan Documents and the Commitments have been terminated, any
and all rights of contribution and reimbursement from a Subsidiary Guarantor to
another Subsidiary Guarantor hereunder or provided by law shall be subordinate,
in right of payment, to the prior and indefeasible payment in full of the Loan
and the other Obligations, and each Funding Guarantor shall not enforce any such
rights or ask for, demand, sue for, take or receive any payments on account
thereof, until the Loan and the other Obligations shall have been finally and
indefeasibly paid in full.

     

    (b)         Additional Subordination
Terms.

     

    (i)           Until
the Loan and other Obligations under the Credit Agreement and the other Loan
Documents have been finally and indefeasibly paid in full and the Commitments
have been terminated, no Subsidiary Guarantor shall be entitled to take any
action, to receive any Contribution Payment or any other payment on account of
any Excess Payment.

     

    (ii)          Until
the Loan and other Obligations under the Credit Agreement and the other Loan
Documents have been finally and indefeasibly paid in full and the Commitments
have been terminated, no Contribution Payment shall be made by or on behalf of
any Subsidiary Guarantor for or on account of any Excess Payment made by any
Funding Guarantor, and no Funding Guarantor shall take or receive from any other
Subsidiary Guarantor, directly or indirectly, any Contribution Payment or other
payment by set off or in any other manner, or exercise of any action in respect
of the Excess Payment.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (iii)         If
an Event of Default exists under the Credit Agreement or the other Loan
Documents or any Insolvency Proceeding of any Subsidiary Guarantor is pending,
any Contribution Payment to which any Funding Guarantor would be entitled shall
be paid directly to the Agent (on behalf of the Lenders) for application against
the Loan and the other Obligations.

     

    (iv)         In
the event that, notwithstanding the foregoing provisions of this Section 5(b), any
Funding Guarantor receives any Contribution Payment or any other payment,
contribution or reimbursement of any kind or character from the other Subsidiary
Guarantors prior to the indefeasible payment in full of the Loan and the other
Obligations and the termination of the Commitments, then and in such event such
Contribution Payment, or other payment, contribution or reimbursement shall be
deemed to be the property of, segregated, received and held in trust for the
benefit of the Lenders and shall be immediately paid over or delivered forthwith
to the Agent (on behalf of the Lenders) (in the same form as received, with any
necessary endorsement) to the extent necessary to make payment in full of (or,
in the case of non-cash property or securities, to be held as additional
collateral for) the Obligations remaining unpaid, until all such Obligations
have been indefeasibly paid in full and the Commitments have been
terminated.  In the event that any Funding Guarantor fails to provide
any necessary endorsement as contemplated above, the Agent is hereby irrevocably
authorized to appropriately make the same.

     

    (v)          Each
Funding Guarantor authorizes and empowers the Agent in any Insolvency Proceeding
to file a proof of claim on behalf of such Subsidiary Guarantor with respect to
the Excess Payments.  Each Subsidiary Guarantor shall give prompt
notice to the Agent of the occurrence of any of the events referred to in this
Section
5(b).

     

    (vi)         Until
the Loan and other Obligations under the Credit Agreement and other Loan
Documents have been finally and indefeasibly paid in full and the Commitments
have been terminated, the Agent (on behalf of the Lenders) is irrevocably
authorized and empowered (in its own name or in the name of a Funding
Guarantor), but shall have no obligation, to demand, sue for, collect and
receive every Contribution Payment or other payment referred to in, and which
Agent is entitled to receive under, this Section 5(b) and give
acquittance therefor and to file claims and proofs of claim and take such other
action as it may deem necessary or advisable for the exercise or enforcement of
any of the rights or interests of the Agent and the Lenders.

     

    (vii)        Until
the Loan and other Obligations under the Credit Agreement and other Loan
Documents have been finally and indefeasibly paid in full and the Commitments
have been terminated, each Funding Guarantor shall duly and promptly take such
action as the Agent may request (A) to collect the Contribution Payments for
account of the Lenders and to file appropriate claims or proofs of claim in
respect of the Excess Payments, (B) to execute and deliver to the Agent such
powers of attorney, assignments or other instruments as they may request in
order to enable them to enforce any and all claims with respect to, and any
security interests and other Liens securing payment of, the Excess Payments, and
(C) to collect and receive any and all payments or distributions that may be
payable or deliverable upon or with respect to the Excess
Payments.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    6.           Equitable
Allocation.  If, as a result of any reorganization,
recapitalization or other organizational change in any of the Subsidiary
Guarantors, or as a result of any amendment, waiver or modification of the terms
and conditions governing the Loan Documents, or for any other reason, the
contributions under this Contribution Agreement become inequitable, prior to the
full repayment of the Loan and the other Obligations and termination of the
Commitments, the parties hereto shall, after first obtaining Agent’s written
consent thereto, promptly modify and amend this Contribution Agreement to
provide for an equitable allocation of contributions; provided that, following
any such modification or amendment, the obligations of the Subsidiary Guarantors
under this Contribution Agreement continue to remain subject to the provisions
of Section 5
above.  Any of the foregoing modifications and amendments shall be in
writing and signed by all parties hereto and acknowledged by the Agent on behalf
of the Lenders.

     

    7.           Asset of Party to Which
Contribution is Owing.  The parties hereto acknowledge that the
right to contribution hereunder shall constitute an asset in favor of any
Subsidiary Guarantor to which such contribution is owing.

     

    8.           Choice of
Law.  This Contribution Agreement is to be construed in
accordance with and governed by the internal laws of the State of New York,
without giving effect to any choice of law rule that would cause the application
of the laws of any jurisdiction other than the internal laws of the State of New
York to govern the rights and duties of the parties.

     

    9.           Amendment/Termination.  Except
as specifically set forth in Section 6 above, this
Contribution Agreement shall not be modified or amended without the prior
written consent of the Agent, shall remain in effect, and shall not be
terminated until the full and final indefeasible payment of the Loan and the
other Obligations, including, without limitation, full and final termination of
all Commitments by the Lenders and full payment of all Contribution Payments so
that no Excess Payment is then outstanding from any Subsidiary Guarantor; provided, however, that the
right of the Agent to consent to any amendment or modification of this
Contribution Agreement and their rights as third party beneficiaries of this
Contribution Agreement shall no longer exist after the Loan has been repaid in
full and the Commitments have been terminated.

     

    10.         Future Guarantors; Released
Guarantors.  At such time following the date hereof as any
Subsidiary Guarantor that owns a Borrowing Base Property (an “Acceding Guarantor”) is
required to accede hereto pursuant to the terms of Section 2.16 or
6.20 of the
Credit Agreement, such Acceding Guarantor shall execute and deliver to the Agent
an accession agreement substantially in the form of Annex 1 (the “Accession Agreement”),
signifying its agreement to be bound by the provisions of this Contribution
Agreement as a Subsidiary Guarantor to the same extent as if such Acceding
Guarantor had originally executed this Contribution Agreement as of the date
hereof.  Each of the other Subsidiary Guarantors hereby consents to
the execution and delivery of such Accession Agreement without any further
notice or consent of such Subsidiary Guarantors.  If any Subsidiary
Guarantor is entitled to be released from its obligations hereunder pursuant to
Section 2.16 of
the Credit Agreement, then, so long as there is no Contribution Payment then due
from such Subsidiary Guarantor and in accordance with the Credit Agreement, such
Subsidiary Guarantor shall be deemed released from its obligations hereunder and
each of the other Subsidiary Guarantors hereby consents to such release without
any further notice to or consent of such Subsidiary Guarantor.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    11.         Third Party
Beneficiary.  The Agent and each of the Lenders are intended
third party beneficiaries of this Contribution Agreement.

     

    12.         Counterparts.  This
Contribution Agreement may be executed in as many counterparts as may be deemed
necessary or convenient and by the different parties hereto or separate
counterparts, and each of which when so executed, shall be deemed to be an
original for all purposes, but all such counterparts shall constitute but one
and the same instrument.

     

    13.         Time is of the Essence.  Time
is of the essence of this Contribution Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each of the Subsidiary Guarantors has executed and delivered
this Contribution Agreement as of the date first above written.

     

    
      
        	 
      	
                [EACH
      SUBSIDIARY GUARANTOR]

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                American
      Realty Capital Operating Partnership, L.P, a Delaware limited partnership,
      its Member

              
	 
      	 
      	 
      
	 
      	 
      	
                By:

              	
                American
      Realty Capital Trust Inc., a Maryland corporation, its General
      Partner

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                By:____________________________

              
	 
      	 
      	 
      	
                Name:
      _________________________

              
	 
      	 
      	 
      	
                Title:
      __________________________

              

      

    

     

    Signature
page to Contribution Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Annex
1

    to
the Contribution Agreement

    

    FORM
OF ACCESSION AGREEMENT

    

    To: Capital
One, N.A. as Agent

    

    Re: American
Realty Capital Operating Partnership, L.P.

    

    Date:     _________________

    

    Ladies
and Gentlemen:

    

    This Accession Agreement is made and
delivered pursuant to Section 10 of that
certain Contribution Agreement dated as of July ___, 2010 (as amended, modified,
renewed or extended from time to time, the “Contribution
Agreement”), made by each Subsidiary Guarantor named in the signature
pages thereof (each a “Subsidiary
Guarantor”), in favor of the Lenders party to the Credit Agreement
referred to below and Capital One, N.A., a national banking association, as
agent for the Lenders (the “Agent”).  All
capitalized terms used in this Accession Agreement and not otherwise defined
herein shall have the meanings assigned to them in either the Contribution
Agreement or in the Credit Agreement, as applicable.

    

    American Realty Capital Operating
Partnership, L.P., a Delaware limited partnership (the “Borrower”), the
Lenders from time to time party thereto (each a “Lender” and,
collectively, the “Lenders”) and the
Agent are parties to a Credit Agreement dated as of July ___, 2010 (as amended,
modified, supplemented, extended, renewed or replaced from time to time, the
“Credit
Agreement”).

    

    The undersigned,
___________________________ [insert name of acceding
Guarantor], a _____________________ [partnership, limited liability
company, etc.], is a Subsidiary and an owner of one or more Borrowing
Base Properties, has executed a joinder agreement to the Subsidiary Guaranty and
hereby acknowledges that it is a “Subsidiary Guarantor” for all purposes of the
Contribution Agreement, effective from the date hereof.

    

    Without limiting the foregoing, the
undersigned hereby assumes and agrees to perform all of the obligations of a
Subsidiary Guarantor under, and to be bound in all respects by the terms of, the
Contribution Agreement to the same extent and with the same force and effect as
if the undersigned were an original Subsidiary Guarantor signatory
thereto.

    

    The Agent and each of the Lenders are
intended third party beneficiaries of this Accession Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    THIS ACCESSION AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

    

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

    

    
      
        
          
            
              
                	 
      	
                        [GUARANTOR]

                      
	 
      	 
      	 
      
	 
      	
                        By

                      	 
      
	 
      	 
      	 
      
	 
      	
                        Title

                      	 
      

              

            

          

        

      

    

    

    
      
        
          	 
      	
                  Address:

                
	 
      	
                  c/o American Realty Capital Trust
      Inc.

                  405 Park Avenue, 15th Floor

                  New York, New York 10022

                
	 
      	
                  Attn.:
      _____________________________

                
	 
      	
                  Telecopier
      No.
______________________

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
2.01

     

    Commitments
of the Lenders

     

    
      
        
          	
                  Lender

                	 	
                  Commitment

                	 
	 
      	 	 	 
	
                  Capital
      One, N.A.

                	 	$	30,000,000	 

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
2.16

     

    Borrowing
Base Properties and Initial Subsidiary Guarantees

    

    None.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
5.05

     

    Litigation

     

    In
November, 2009, J.H. Winokur, Inc. filed a Complaint against American Realty
Capital, LLC (“ARC”), American Realty Capital Trust, Inc. (“ARCT”), Nicholas
Schorsch and William Kahane.  The Complaint is related to an alleged real
estate brokerage commission.  The claim is based on a brokerage contract
with ARC (ARCT is not a party) from 2007 related to certain properties owned by
ARCT and leased to CVS.  ARC is vigorously defending the Complaint on
behalf of all defendants.  The claim is for alleged brokerage fees totaling
$1,008,000.  ARC has engaged Kenneth Roberts at the law firm Cozen O’Connor
as litigation counsel for all defendants.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
5.10

     

    ERISA
Disclosures

     

    None.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
5.25

     

    Leases

     

    None.

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