Document:

exv4w1

Exhibit 4.1

ENDURANCE SPECIALTY HOLDINGS LTD.

AND

THE BANK OF NEW YORK MELLON

TRUSTEE

THIRD SUPPLEMENTAL INDENTURE

Dated as of March 26, 2010

Supplement to the First Supplemental Indenture

Dated as of July 15, 2004

and the Indenture

Dated as of July 15, 2004

 

$85,000,000

7% Senior Notes

Due 2034

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I ADDITIONAL 7% SENIOR NOTES DUE 2034	 	 	1	 
	 
	 	Section 1.01	 	             Establishment	 	 	1	 
	 
	 	Section 1.02	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II MISCELLANEOUS PROVISIONS	 	 	2	 
	 
	 	Section 2.01	 	Recitals by the Company	 	 	2	 
	 
	 	Section 2.02	 	Ratification and Incorporation of Original Indenture	 	 	2	 
	 
	 	Section 2.03	 	Executed in Counterparts	 	 	2	 
	 
	 	Section 2.04	 	New York Law to Govern	 	 	2	 

 

 

     THIS THIRD SUPPLEMENTAL INDENTURE is made as of the 26th day of March, 2010, by and between
ENDURANCE SPECIALTY HOLDINGS LTD., an exempted company incorporated in Bermuda as a holding company
(the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, as trustee (the
“Trustee”):

     WHEREAS, the Company has heretofore entered into a Senior Indenture, dated as of July 15, 2004
(the “Original Indenture”), with The Bank of New York Mellon, formerly known as the Bank of New
York, as supplemented by the First Supplemental Indenture, dated as of July 15, 2004, by and
between the Company and The Bank of New York Mellon, formerly known as the Bank of New York (the
“First Supplemental Indenture”);

     WHEREAS, the Original Indenture and the First Supplemental Indenture are incorporated herein
by reference and the Original Indenture, as supplemented by the First Supplemental Indenture and as
further supplemented by this Third Supplemental Indenture, is herein called the “Indenture”;

     WHEREAS, pursuant to the Original Indenture, as supplemented by the First Supplemental
Indenture, the Board of Directors of the Company established a new series of senior notes
designated as the 7.0% Senior Notes due 2034 (the “Initial 2034 Senior Notes”), initially limited
to aggregate principal amount of $250,000,000;

     WHEREAS, the Original Indenture, as supplemented by the First Supplemental Indenture, provides
that the aggregate principal amount of the Initial 2034 Senior Notes may be increased in the
future, without the consent of the holders of the Initial 2034 Senior Notes, on the same terms and
with the same CUSIP and ISIN numbers as the Initial 2034 Senior Notes;

     WHEREAS, the Company proposes to issue additional 7.0% Senior Notes due 2034 (the “Additional
2034 Senior Notes”, and, collectively with the Initial 2034 Senior Notes, the “2034 Senior Notes”),
and the Additional 2034 Senior Notes, together with the Initial 2034 Senior Notes, will constitute
a single series of senior notes;

     WHEREAS, additional senior notes of other series hereafter established, except as may be
limited in the Original Indenture as at the time supplemented and modified, may be issued from time
to time pursuant to the Indenture as at the time supplemented and modified, and all senior notes
issued by the Company of any one series need not be issued at the same time and, unless otherwise
so provided, may be reopened for issuances of additional senior notes of such series; and

     WHEREAS, all things necessary to authorize the execution and delivery of this Third
Supplemental Indenture and make it a valid and binding agreement of the Company, in accordance with
its terms, have been done.

     NOW THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

ARTICLE I

ADDITIONAL 7% SENIOR NOTES DUE 2034

Section 1.01 Establishment. The aggregate principal amount of the 2034 Senior Notes, initially limited to an aggregate
principal amount of $250,000,000 under the First Supplemental Indenture, is hereby increased by
$85,000,000 to an aggregate principal amount of $335,000,000.

     There are to be authenticated and delivered Additional 2034 Senior Notes in an aggregate
principal amount of $85,000,000. Except as provided herein, the Additional 2034 Senior Notes shall
have the same terms and same CUSIP numbers and ISIN numbers as the Initial 2034 Senior Notes and
shall combine with the Initial 2034 Senior Notes to form a single series of senior notes under the
Indenture. No

1

 

further 2034 Senior Notes shall be authenticated and delivered except as provided by
Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Original Indenture and the terms of this Third
Supplemental Indenture; provided, however, that the aggregate principal amount of the 2034 Senior
Notes may be increased in the future, without the consent of the holders of the 2034 Senior Notes
(including, without limitation, without the consent of any holders of the Initial 2034 Senior Notes
or the Additional 2034 Senior Notes), on the same terms and with the same CUSIP and ISIN numbers as
the 2034 Senior Notes. The Additional 2034 Senior Notes shall be issued in fully registered form.

     The Additional 2034 Senior Notes shall be issued in the form of one or more Global Securities
in substantially the form set out in Exhibit A hereto. The Depositary with respect to the
Additional 2034 Senior Notes shall be The Depository Trust Company.

     The form of the Trustee’s Certificate of Authentication for the Additional 2034 Senior Notes
shall be substantially in the form set forth in Exhibit A hereto.

     Each Additional 2034 Senior Note shall be dated the date of authentication thereof and shall
bear interest from January 15, 2010 at 7.00% per annum, payable semi-annually on January 15 and
July 15 of each year, commencing July 15, 2010.

Section 1.02 Definitions. Capitalized terms used herein for which no definition is provided herein shall have the meanings
set forth in the Original Indenture, as supplemented by the First Supplemental Indenture.

ARTICLE II

MISCELLANEOUS PROVISIONS

Section 2.01 Recitals by the Company. The recitals in this Third Supplemental Indenture are made by the Company only and not by the
Trustee, and the Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Third Supplemental Indenture or of the
Initial 2034 Senior Notes or the Additional 2034 Senior Notes. The Trustee shall not be
accountable for the use or application by the Company of the 2034 Senior Notes or the proceeds
thereof. All of the provisions contained in the Original Indenture in respect of the rights,
privileges, immunities, powers and duties of the Trustee shall be applicable in respect of the 2034
Senior Notes and of this Third Supplemental Indenture as fully and with like effect as if set forth
herein in full.

Section 2.02 Ratification and Incorporation of Original Indenture. As supplemented hereby, the Original Indenture and the First Supplemental Indenture are in all
respects ratified and confirmed, and the Original Indenture, the First Supplemental Indenture and
this Third Supplemental Indenture shall be read, taken and construed as one and the same
instrument.

Section 2.03 Executed in Counterparts. This Third Supplemental Indenture may be simultaneously executed in several counterparts, each
of which shall be deemed to be an original, and such counterparts shall together constitute but one
and the same instrument.

Section 2.04 New York Law to Govern. This Third Supplemental Indenture and each Additional 2034 Senior Note shall be deemed to be a
contract under the laws of the state of New York, and for all purposes shall be construed in
accordance with the laws of such state, except as may be required by mandatory provisions of law.

2

 

     IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and
behalf by its duly authorized officers, all as of the day and year first above written.

	 	 	 	 	 
	 	ENDURANCE SPECIALTY HOLDINGS LTD.,

as Issuer

 	 
	 	By:  	/s/ John V. Del Col	 
	 	 	Name:  	John V. Del Col	 
	 	 	Title:  	General Counsel, Secretary &
Executive Vice President	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	/s/ Frances M. Ferrera	 
	 	 	Name:  	Frances M. Ferrera	 
	 	 	Title:  	Senior Associate	 

 

 

	 	 	 	 	 

EXHIBIT A

Form of 7% Senior Note due July 15, 2034

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, TO ENDURANCE SPECIALTY HOLDINGS LTD. OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO THE NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.

A-1

 

No. 3

CUSIP No. 29267HAA7

ISIN No. US29267HAA77

ENDURANCE SPECIALTY HOLDINGS LTD.

7% Senior Notes

Due July 15, 2034

	 	 	 
	Principal Amount:

	 	$85,000,000
	 
	 	 
	Regular Record Date:

	 	with respect to each Interest Payment Date, the
close of business on the preceding January 1 or
July 1, as the case may be
	 
	 	 
	Original Issue Date:

	 	March 26, 2010
	 
	 	 
	Stated Maturity:

	 	July 15, 2034
	 
	 	 
	Interest Payment Dates:

	 	January 15 and July 15 commencing July 15, 2010
	 
	 	 
	Interest Rate:

	 	7% per year
	 
	 	 
	Authorized Denomination:

	 	$1,000

     Endurance Specialty Holdings Ltd., an exempted company incorporated in Bermuda as a holding
company (the “Company,” which term includes any successor corporation under the Indenture referred
to on the reverse hereof), for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of eighty-five million dollars ($85,000,000) on the Stated Maturity
shown above, and to pay interest thereon from the Original Issue Date shown above, or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in
arrears on each Interest Payment Date as specified above, commencing on July 15, 2010, and on the
Stated Maturity at the rate per year shown above until the principal hereof is paid or made
available for payment and on any overdue principal and on any overdue installment of interest to
the extent permitted by law. As provided in the Indenture, the Company under certain circumstances
would be required to pay Additional Amounts to the Holders of the Senior Notes. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an
Interest Payment Date that is the Stated Maturity) will, as provided in the Indenture, be paid to
the Person in whose name this Note is registered at the close of business on the Regular Record
Date as specified above next preceding such Interest Payment Date, provided that any interest
payable at Stated Maturity will be paid to the Person to whom principal is payable. Except as
otherwise provided in the Indenture, any such interest that is not so punctually paid or duly
provided for will forthwith cease to be payable to the holders on such Regular Record Date and may
be paid as provided in Section 2.7 of the Original Indenture.

     Payments of interest on this Note will include interest accrued to but excluding the
respective Interest Payment Dates, except such interest accruing from and including January 15,
2010 to and excluding the settlement date. Interest payments for this Note shall be computed and
paid on the basis of a 360-day year consisting of twelve 30-day months. In the event that any date
on which interest is payable on this Note is not a Business Day, then payment of the interest
payable on such date will be made on the next succeeding day that is a Business Day (and without
any interest or other payment in respect of any such delay), except that, if such Business Day is
in the next succeeding calendar year, payment shall be made on the immediately preceding Business
Day, in each case with the same force and effect as if made on the date the payment was originally
payable.

     Payment of the principal of and interest due at the Stated Maturity of this Note shall be made
upon surrender of this Note at the Corporate Trust Office of the Trustee. The principal of and
interest on this Note shall be paid in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts. Payment of interest
(including interest on an Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security register or (ii) by wire transfer at such

A-2

 

place and to such account at a banking institution in the United States as may be designated
in writing to the Trustee at least 15 days prior to the date for payment by the Person entitled
thereto.

     The Senior Notes (as defined on the reverse hereof) will be unsecured obligations of the
Company and will rank equally in right of payment with all the other unsecured, unsubordinated
indebtedness of the Company from time to time outstanding. The Senior Notes will rank senior to any
subordinated indebtedness of the Company.

     REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.

     Unless the certificate of authentication hereon has been executed by the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

A-3

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 
	 	ENDURANCE SPECIALTY HOLDINGS LTD.,

as Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	Attest:
	 	 
	 
	 	 
	 

Name:

	 	 
	Title
	 	 

CERTIFICATE OF AUTHENTICATION

     This is one of the 7% Senior Notes due 2034 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

A-4

 

(Reverse Side of Note)

     This Note is one of a duly authorized issue of senior notes of the Company issued and issuable
in one or more series under a Senior Indenture dated as of July 15, 2004 (the “Original
Indenture”), as supplemented by the First Supplemental Indenture, dated as of July 15, 2004 (the
“First Supplemental Indenture,” and as further supplemented by the Third Supplemental Indenture
dated as of March 26, 2010 (the “Third Supplemental Indenture” and, together with the Original
Indenture and the First Supplemental Indenture, the “Indenture”), between the Company and The Bank
of New York Mellon, as Trustee (the “Trustee,” which term includes any successor trustee under the
Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Trustee and the holders of the Senior Notes issued thereunder and of the terms upon
which said Senior Notes are, and are to be, authenticated and delivered. This Senior Note is one
of the series designated on the face hereof as 7% Senior Notes due July 15, 2034 (the “Senior
Notes”), initially limited in aggregate principal amount of $250,000,000 pursuant to the First
Supplemental Indenture and increased to an aggregate principal amount of $335,000,000 pursuant to
the Third Supplemental Indenture; provided, however, that the aggregate principal amount of the
Senior Notes may be further increased in the future, without the consent of the holders of the
Senior Notes, on the same terms and with the same CUSIP and ISIN numbers as the Senior Notes.
Capitalized terms used herein for which no definition is provided herein shall have the meanings
set forth in the Indenture.

     This Note is exchangeable in whole or from time to time in part for Senior Notes of this
series in definitive registered form only as provided herein and in the Indenture. If (i) at any
time the Depositary notifies the Company that it is unwilling, unable or ineligible to continue as
Depositary for this Note, and the Company does not appoint a successor Depositary within 60 days
after the Company receives such notice or becomes aware of such condition, as the case may be, (ii)
an event of default under the Indenture with respect to the Senior Notes has occurred and is
continuing, or (iii) the Company in its sole discretion determines that this Note shall be
exchangeable for Senior Notes of this series in definitive registered form and executes and
delivers to the Security registrar a written order of the Company providing that this Note shall be
so exchangeable, this Note shall be exchangeable for Senior Notes of this series in definitive
registered form, provided that the definitive Senior Notes so issued in exchange for this Note
shall be in denominations of $1,000 and whole multiples of $1,000 in excess of $2,000, without
coupons, and be of like aggregate principal amount and tenor as the portion of this Note to be
exchanged. Except as provided above, owners of beneficial interests in this Note will not be
entitled to have Senior Notes registered in their names, will not receive or be entitled to
physical delivery of Senior Notes in definitive registered form and will not be considered the
holders thereof for any purpose under the Indenture. Neither the Company, the Trustee, any Paying
Agent nor the Security registrar shall have any responsibility or liability for any aspect of
records relating to or payments made on account of beneficial ownership interests in this Note, or
for maintaining, supervising or reviewing any records relating to such beneficial ownership
interests.

     If an Event of Default with respect to the Senior Notes shall occur and be continuing, the
principal of the Senior Notes may be declared due and payable in the manner, with the effect and
subject to the conditions provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the holders of the
Senior Notes under the Indenture at any time by the Company and the Trustee with the consent of the
holders of not less than a majority in aggregate principal amount of the Senior Notes at the time
Outstanding. The Indenture also contains provisions permitting the holders of specified
percentages in principal amount of the Senior Notes at the time Outstanding, on behalf of the
holders of all Senior Notes, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all
future holders of this Note and of any Senior Note issued upon the registration of transfer hereof
or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Note.

     The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of
the Company pursuant to this Note and (b) restrictive covenants and the related Events of Default,
upon compliance by the Company with certain conditions set forth therein, which provisions apply to
this Note.

A-5

 

     The Senior Notes will be redeemable, at the option of the Company, in whole at any time or in
part from time to time (a “Redemption Date”), at a redemption price (the “Redemption Price”) equal
to the greater of (i) 100% of the principal amount of the Senior Notes to be redeemed and (ii) an
amount equal to the sum of the present values of the remaining scheduled payments for principal of
and interest on the Senior Notes to be redeemed, not including any portion of the payments of
interest accrued as of such Redemption Date, discounted to such Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 30
basis points; plus in each case, accrued and unpaid interest on the Senior Notes to be redeemed to,
but excluding, such Redemption Date.

     “Treasury Rate” means (1) the yield, under the heading which represents the average for the
immediately preceding week, appearing in the most recently published statistical release designated
“H.15(519)” or any successor publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded United States Treasury
securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months
before or after the remaining life, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest
month), or (2) if such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per year equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the
third business day preceding the Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the Senior
Notes to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Senior Notes.

     “Independent Investment Banker” means J.P. Morgan Securities Inc. and its successors or
Barclays Capital Inc. and its successors or, if either of such firms is unwilling or unable to
select the Comparable Treasury Issue, an independent investment banking institution of national
standing appointed by the Trustee after consultation with the Company.

     “Comparable Treasury Price” means with respect to any Redemption Date for the Senior Notes (1)
the average of five Reference Treasury Dealer Quotations for such Redemption Date, after excluding
the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains
fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Reference Treasury Dealer” means J.P. Morgan Securities Inc. and Barclays Capital Inc. and
their respective successors and three other primary U.S. government securities dealers (each a
“Primary Treasury Dealer”), as specified by the Company; provided that (1) if any of J.P. Morgan
Securities Inc. and Barclays Capital Inc. and their respective successors or any Primary Treasury
Dealer as specified by the Company shall cease to be a Primary Treasury Dealer, the Company will
substitute therefore another Primary Treasury Dealer and (2) if the Company fails to select a
substitute within a reasonable period of time, then the substitute will be a Primary Treasury
Dealer selected by the Trustee after consultation with the Company.

     “Reference Treasury Dealer Quotations” means, with respect to the Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such
Redemption Date.

     Notice of any redemption will be mailed at least 30 days but no more than 60 days before the
redemption date to each Holder of the Senior Notes to be redeemed. Notwithstanding Section 12.2 of
the Original Indenture, the notice of redemption with respect to the foregoing redemption need not
set forth the Redemption Price but only the manner of calculation thereof.

A-6

 

     The Company shall notify the Trustee of the Redemption Price with respect to the foregoing
redemption promptly after the calculation thereof. The Trustee shall not be responsible for
calculating said Redemption Price. Unless the Company defaults in payment of the redemption price,
on and after the redemption date, interest will cease to accrue on the Senior Notes or portions
thereof called for redemption.

     If less than all of the Senior Notes are to be redeemed, the Trustee shall determine, in such
manner as it deems appropriate and fair, the principal amount of such notes held by each beneficial
owner of such Senior Notes to be redeemed. The Trustee may select notes and portions of notes in
amounts of $1,000 and whole multiples of $1,000 in excess of $2,000.

     The Indenture contains provisions for redemption of the Senior Notes for tax purposes in whole
but not in part at the option of the Company.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security register, upon surrender of this Note for
registration of transfer at the office or agency of the Company for such purpose, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the Company or the
Security registrar and duly executed by, the holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Senior Notes, of authorized denominations and of like tenor
and for the same aggregate principal amount, will be issued to the designated transferee or
transferees. No service charge shall be made for any such exchange or registration of transfer,
but the Company will require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the Company, the Trustee,
any Person authorized by the Company to pay the principal of or any premium or interest on any
Securities on behalf of the Company (“Paying Agent”) and the Security registrar of the Company or
the Trustee may deem and treat the Person in whose name this Note is registered as the absolute
owner hereof for all purposes, whether or not this Note be overdue and notwithstanding any notice
of ownership or writing thereon made by anyone other than the Security registrar, and neither the
Company nor the Trustee nor any Paying Agent nor the Security registrar shall be affected by notice
to the contrary.

     The Senior Notes are issuable only in registered form without coupons in denominations of
$1,000 and whole multiples of $1,000 in excess of $2,000. As provided in the Indenture and subject
to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate
principal amount of Senior Notes of a different authorized denomination, as requested by the holder
surrendering the same upon surrender of the Senior Note or Senior Notes to be exchanged at the
office or agency of the Company.

     No recourse shall be had for payment of the principal of or interest on this Note, or for any
claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture,
against any incorporator, as such or against any past, present or future shareholder, officer or
director, as such, of the Company or of any successor, either directly or through the Company or
any successor, under any rule, law statute or constitutional provision, or by the enforcement of
any assessment or by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released, by the acceptance hereof and as part of the consideration for the
issuance hereof.

     Unless the certificate of authentication hereon has been executed by the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

     This Note shall be governed by, and construed in accordance with, the internal laws of the
state of New York.

A-7

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT — Custodian
under Uniform Gift to Minors Act
	 
	 	 
	 

	 	                                        
	 

	 	(State)
	 
	 	 
	TEN ENT — as tenants by the entireties
	 	 
	 
	 	 
	JT TEN — as joint tenants with rights of

	 	CUST — Custodian 

survivorship and not as 

tenants in common

Additional abbreviations may also be used

though not on the above list.

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

 

 

(please insert Social Security or other identifying number of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

 

 

 

agent to transfer said Note on the books of the Company, with full power of substitution in the
premises.

	 	 	 
	Dated:

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	NOTICE: The signature to this assignment must correspond with
the name as written upon the face of the within instrument in
every particular without alteration or enlargement, or any
change whatever.

A-8Exhibit 10.5

Exhibit 10.5

COLE
CREDIT PROPERTY TRUST III, INC.

Up to 250,000,000 Shares of Common Stock

FORM OF DEALER MANAGER AGREEMENT

September 30, 2008

Cole Capital Corporation

2555 East Camelback Road

Suite 400

Phoenix, Arizona 85016

Ladies and Gentlemen:

     Cole
Credit Property Trust III, Inc., a Maryland corporation (the “Company”), is registering for a
public sale a maximum of 250,000,000 shares of its common stock, $0.01 par value per share (the
“Offering”), of which amount 230,000,000 shares are to be offered to the public for $10.00 per share (collectively the
“Shares” or the “Stock”) and an additional 20,000,000 shares are to be offered pursuant to the
Company’s distribution reinvestment plan at the higher of 95% of the estimated value of a share of
our common stock, as estimated by our board of directors, or $9.50 per share. There shall be a
minimum purchase by any one person of 250 Shares (except as otherwise indicated in the Prospectus
or in any letter or memorandum for the Company to Cole Capital Corporation (the “Dealer Manager”)).
Terms not defined herein shall have the same meaning as in the Prospectus. In connection
therewith, the Company hereby agrees with you, the Dealer Manager, as follows:

1. Representations and Warranties of the Company

     The Company represents and warrants to the Dealer Manager that:

     1.1
A registration statement (File 333-149290) on Form S-11 with respect to the Company
has been prepared by the Company in accordance with applicable requirements of the Securities Act
of 1933, as amended (the “Securities Act”), and the applicable rules and regulations (the “Rules
and Regulations”) of the Securities and Exchange Commission (the “SEC”) promulgated thereunder,
covering the Shares. Copies of such registration statement and each amendment thereto have been or
will be delivered to the Dealer Manager. (The registration statement and prospectus contained
therein, as finally amended at the effective date of the registration statement, are respectively
hereinafter referred to as the “Registration Statement” and the “Prospectus,” except that if the
Company files a Prospectus or a prospectus supplement pursuant to Rule 424(b) under the Securities
Act, or if the Company files a post-effective amendment to the Registration Statement, the term
“Prospectus” includes the prospectus filed pursuant to Rule 424(b) or the prospectus included in
such post-effective amendment.)

     1.2 The Company has been duly and validly organized and formed as a corporation under the laws
of the state of Maryland, with the power and authority to conduct its business as described in the
Prospectus.

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     1.3 The Registration Statement and the Prospectus comply with the Securities Act and the Rules
and Regulations and do not contain any untrue statements of material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein
not misleading; provided, however, that the foregoing provisions of this Section 1.3 will not
extend to such statements contained in or omitted from the Registration Statement or Prospectus as
(i) are primarily within the knowledge of the Dealer Manager or any of the Dealers and (ii) for
statements contained in the Registration Statement or Prospectus, are based upon information
furnished by the Dealer Manager in writing to the Company specifically for inclusion therein.

     1.4 The Company intends to use the funds received from the sale of the Shares as set forth in
the Prospectus.

     1.5 No consent, approval, authorization or other order of any governmental authority is
required in connection with the execution or delivery by the Company of this Agreement or the
issuance and sale by the Company of the Shares, except such as may be required under the Securities
Act or applicable state securities laws.

     1.6 There are no actions, suits or proceedings pending or to the knowledge of the Company,
threatened against the Company at law or in equity or before or by any federal or state commission,
regulatory body or administrative agency or other governmental body, domestic or foreign, which
will have a material adverse effect on the business or property of the Company.

     1.7 The execution and delivery of this Agreement, the consummation of the transactions herein
contemplated and compliance with the terms of this Agreement by the Company will not conflict with
or constitute a default under any charter, bylaw, indenture, mortgage, deed of trust, lease, rule,
regulation, writ, injunction or decree of any government, governmental instrumentality or court,
domestic or foreign, having jurisdiction over the Company, except to the extent that the
enforceability of the indemnity and/or contribution provisions contained in Section 4 of this
Agreement may be limited under applicable securities laws.

     1.8 The Company has full legal right, power and authority to enter into this Agreement and to
perform the transactions contemplated hereby, except to the extent that the enforceability of the
indemnity and/or contribution provisions contained in Section 4 of this Agreement may be limited
under applicable securities laws.

     1.9 At the time of the issuance of the Shares, the Shares will have been duly authorized and
validly issued, and upon payment therefor, will be fully paid and nonassessable and will conform to
the description thereof contained in the Prospectus.

2. Covenants of the Company

     The Company covenants and agrees with the Dealer Manager that:

     2.1 It will, at no expense to the Dealer Manager, furnish the Dealer Manager with such number
of printed copies of the Registration Statement, including all supplements, amendments and exhibits
thereto, as the Dealer Manager may reasonably request. It will similarly furnish to the Dealer
Manager, and others designated by the Dealer Manager, as many copies as the Dealer Manager may
reasonably request in connection with the offering of the Shares of: (a) the Prospectus in
preliminary and final form and every form of supplemental or amended prospectus; (b) this
Agreement; and (c) any other printed sales literature or other materials (provided that the use of
said sales literature and other materials has been first approved for use by the Company and all
appropriate regulatory agencies).

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     2.2 It will furnish such proper information and execute and file such documents as may be
necessary for the Company to qualify the Shares for offer and sale under the securities laws of
such jurisdictions as the Dealer Manager may reasonably designate and will file and make in each
year such statements and reports as may be required. The Company will furnish to the Dealer
Manager a copy of such papers filed by the Company in connection with any such qualification.

     2.3 It will: (a) use its best efforts to cause the Registration Statement to become effective;
(b) furnish copies of any proposed amendment or supplement to the Registration Statement or
Prospectus to the Dealer Manager; (c) file every amendment or supplement to the Registration
Statement or the Prospectus that may be required by the SEC; and (d) use its best efforts to obtain
the lifting of any stop order suspending the effectiveness of the Registration Statement that may
be issued by the SEC at the earliest possible time. If at any time when a Prospectus is required
to be delivered under the Securities Act any event occurs as a result of which, in the opinion of
either the Company or the Dealer Manager, the Prospectus or any other prospectus then in effect
would include an untrue statement of a material fact or, in view of the circumstances under which
they were made, omit to state any material fact necessary to make the statements therein not
misleading, the Company will promptly notify the Dealer Manager thereof (unless the information
shall have been received from the Dealer Manager) and will effect the preparation of an amended or
supplemental prospectus which will correct such statement or omission. The Company will then
promptly prepare such amended or supplemental prospectus or prospectuses as may be necessary to
comply with the requirements of Section 10 of the Securities Act.

3. Obligations and Compensation of Dealer Manager

     3.1 The Company hereby appoints the Dealer Manager as its agent and principal distributor for
the purpose of selling for cash up to a maximum of 230,000,000 Shares through Dealers, all of whom
shall be members of the Financial Industry Regulatory Authority, Inc. (FINRA). The Dealer Manager
may also sell Shares for cash directly to its own clients and customers at the public offering
price and subject to the terms and conditions stated in the Prospectus. The Dealer Manager hereby
accepts such agency and distributorship and agrees to use its best efforts to sell the Shares on
said terms and conditions. The Dealer Manager represents to the Company that (i) it is a member of
FINRA; (ii) it and its employees and representatives have all required licenses and registrations
to act under this Agreement; and (iii) it has established and implemented anti-money laundering
compliance programs in accordance with applicable law, including applicable FINRA rules, SEC rules,
and the USA PATRIOT Act of 2001, reasonably expected to detect and cause the reporting of
suspicious transactions in connection with the sale of Shares of the Company. The Dealer Manager
agrees to be bound by the terms of the Escrow Agreement executed as
of September 16, 2008 among UMB Bank, N.A.,
as escrow agent, the Dealer Manager and the Company, a copy of which is enclosed (the “Escrow
Agreement”).

     3.2 Promptly after the effective date of the Registration Statement, the Dealer Manager and
the Dealers shall commence the offering of the Shares for cash to the public in jurisdictions in
which the Shares are registered or qualified for sale or in which such offering is otherwise
permitted. The Dealer Manager and the Dealers will suspend or terminate offering of the Shares
upon request of the Company at any time and will resume offering the Shares upon subsequent request
of the Company.

     3.3 Except as provided in the “Plan of Distribution” section of the Prospectus, as
compensation for the services rendered by the Dealer Manager, the Company agrees that it will pay
to the Dealer Manager selling commissions in the amount of 7.0% of the gross proceeds of the Shares
sold plus a dealer manager fee in the amount of 2.0% of the gross proceeds of the Shares sold;
provided, however, that there shall be no selling commissions and no dealer manager fees paid for
sales of Shares under the Company’s distribution reinvestment plan. Notwithstanding the foregoing,
no commissions, payments or amount whatsoever will be paid to the Dealer Manager under this Section
3.3 unless or until the gross

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proceeds of the Shares sold are disbursed to the Company pursuant to paragraph [3] of the
Escrow Agreement. Until the Required Capital or the Pennsylvania Required Capital (as applicable
and as defined in the Escrow Agreement) is obtained, investments will be held in escrow and, if the
Required Capital or the Pennsylvania Required Capital (as applicable) is not obtained, investments
will be returned to the investors in accordance with the Prospectus. The Company will not be
liable or responsible to any Dealer for direct payment of commissions to such Dealer, it being the
sole and exclusive responsibility of the Dealer Manager for payment of commissions to Dealers.
Notwithstanding the above, at its discretion, the Company may act as agent of the Dealer Manager by
making direct payment of commissions to such Dealers without incurring any liability therefore.

     3.4 The Dealer Manager represents and warrants to the Company and each person and firm that
signs the Registration Statement that the information under the caption “Plan of Distribution” in
the Prospectus and all other information furnished to the Company by the Dealer Manager in writing
expressly for use in the Registration Statement, any preliminary prospectus, the Prospectus, or any
amendment or supplement thereto does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading.

     3.5 The Dealer Manager shall use and distribute, in conjunction with the offer and sale of any
Shares, only the Prospectus and such sales literature and advertising as shall have been previously
approved in writing by the Company.

     3.6 The Dealer Manager and the Dealers shall cause Shares to be offered and sold only in those
jurisdictions specified in writing by the Company for whose account Shares are then offered for
sale, and such list of jurisdictions shall be updated by the Company as additional states are
added. The Company shall specify only such jurisdictions in which the offering and sale of its
Shares has been authorized by appropriate state regulatory authorities. No Shares shall be offered
or sold for the account of the Company in any other states.

     3.7 The Dealer Manager represents and warrants to the Company that it will not represent or
imply that the escrow agent, as identified in the Prospectus, has investigated the desirability or
advisability of investment in the Company, or has approved, endorsed or passed upon the merits of
the Shares or the Company, nor will it use the name of said escrow agent in any manner whatsoever
in connection with the offer or sale of the Shares other than by acknowledgment that it has agreed
to serve as escrow agent.

4. Indemnification

     4.1 The Company will indemnify and hold harmless the Dealers and the Dealer Manager, their
officers and directors and each person, if any, who controls such Dealer or Dealer Manager within
the meaning of Section 15 of the Securities Act from and against any losses, claims, damages or
liabilities (“Losses”), joint or several, to which such Dealers or Dealer Manager, their officers
and directors, or such controlling person may become subject, under the Securities Act or
otherwise, insofar as such Losses (or actions in respect thereof) arise out of or are based upon
(a) any untrue statement or alleged untrue statement of a material fact contained (i) in any
Registration Statement (including the Prospectus as a part thereof) or any post-effective amendment
thereto or in the Prospectus or any amendment or supplement to the Prospectus or (ii) in any blue
sky application or other document executed by the Company or on its behalf specifically for the
purpose of qualifying any or all of the Shares for sale under the securities laws of any
jurisdiction or based upon written information furnished by the Company under the securities laws
thereof (any such application, document or information being hereinafter called a “Blue Sky
Application”), or (b) the omission or alleged omission to state in the Registration Statement
(including the Prospectus as a part thereof) or any post-effective amendment thereof or in any Blue
Sky Application a

-4-

 

material fact required to be stated therein or necessary to make the statements therein not
misleading, or (c) any untrue statement or alleged untrue statement of a material fact contained in
any preliminary prospectus, if used prior to the effective date of the Registration Statement, or
in the Prospectus or any amendment or supplement to the Prospectus of the omission or alleged
omission to state therein a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading, and will reimburse each Dealer or Dealer Manager, its officers and each such
controlling person for any legal or other expenses reasonably incurred by such Dealer or Dealer
Manager, its officers and directors, or such controlling person in connection with investigating or
defending such loss, claim, damage, liability or action; provided that the Company will not be
liable in any such case to the extent that any such Loss arises out of, or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company or Dealer Manager by or on behalf of
any Dealer or Dealer Manager specifically for use with reference to such Dealer or Dealer Manager
in the preparation of the Registration Statement or any such post-effective amendment thereof, any
such Blue Sky Application or any such preliminary prospectus or the Prospectus or any such
amendment thereof or supplement thereto; and further provided that the Company will not be liable
in any such case if it is determined that such Dealer or Dealer Manager was at fault in connection
with the Loss. Notwithstanding the foregoing, the Company may not indemnify or hold harmless the
Dealer Manager, any Dealer or any of their affiliates in any manner that would be inconsistent with
the provisions of Section II.G. of the Statement of Policy Regarding Real Estate Investment Trusts
of the North American Securities Administrators Association, Inc. effective May 7, 2007, as may be
amended (the “NASAA Guidelines”). In particular, but without limitation, the Company may not
indemnify or hold harmless the Dealer Manager, any Dealer or any of their affiliates for
liabilities arising from or out of a violation of state or federal securities laws, unless one or
more of the following conditions are met:

	 	(a)	 	there has been a successful adjudication on the merits of each count involving
alleged securities law violations;
	 
	 	(b)	 	such claims have been dismissed with prejudice on the merits by a court of
competent jurisdiction; or
	 
	 	(c)	 	a court of competent jurisdiction approves a settlement of the claims against
the indemnitee and finds that indemnification of the settlement and the related costs
should be made, and the court considering the request for indemnification has been
advised of the position of the SEC and of the published position of any state
securities regulatory authority in which the securities were offered as to
indemnification for violations of securities laws.

     4.2 The Dealer Manager will indemnify and hold harmless the Company and each person or firm
which has signed the Registration Statement and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act, from and against any Losses to which any of
the aforesaid parties may become subject, under the Securities Act or otherwise, insofar as such
Losses (or actions in respect thereof) arise out of or are based upon (a) any untrue statement of a
material fact contained (i) in the Registration Statement (including the Prospectus as a part
thereof) or any post-effective amendment thereof or (ii) any Blue Sky Application, or (b) the
omission to state in the Registration Statement (including the Prospectus as a part thereof) or any
post-effective amendment thereof or in any Blue Sky Application a material fact required to be
stated therein or necessary to make the statements therein not misleading, or (c) any untrue
statement or alleged untrue statement of a material fact contained in any preliminary prospectus,
if used prior to the effective date of the Registration Statement, or in the Prospectus, or in any
amendment or supplement to the Prospectus or the omission to state therein a material fact required
to be stated therein or necessary in order to make the

-5-

 

statements therein in the light of the circumstances under which they were made not misleading
in each case to the extent, but only to the extent, that such untrue statement or omission was made
in reliance upon and in conformity with written information furnished to the Company by or on
behalf of the Dealer Manager specifically for use with reference to the Dealer Manager in the
preparation of the Registration Statement or any such post-effective amendments hereof or any such
Blue Sky Application or any such preliminary prospectus or the Prospectus or any such amendment
thereof or supplement thereto, or (d) any unauthorized use of sales materials or use of
unauthorized verbal representations concerning the Shares by the Dealer Manager, or (e) any failure
to comply with applicable laws governing money laundry abatement and anti-terrorist financing
efforts, including applicable FINRA rules, SEC rules and the USA PATRIOT Act of 2001, and will
reimburse the aforesaid parties, in connection with investigation or defending such Loss or action.
This indemnity agreement will be in addition to any liability which the Dealer Manager may
otherwise have.

     4.3 Each Dealer, severally, will indemnify and hold harmless the Company, Dealer Manager and
each of their directors (including any person named in the Registration Statement with his consent
as about to become a director), each of their officers who has signed the Registration Statement
and each person, if any, who controls the Company and the Dealer Manager within the meaning of
Section 15 of the Securities Act from and against any Losses to which the Company, the Dealer
Manager, any such director or officer, or controlling person may become subject, under the
Securities Act or otherwise, insofar as such Losses or liabilities (or actions in respect thereof)
arise out of or are based upon (a) any untrue statement or alleged untrue statement of a material
fact contained (i) in the Registration Statement (including the Prospectus as a part thereof) or
any post-effective amendment thereof or (ii) in any Blue Sky Application, or (b) the omission or
alleged omission to state in the Registration Statement (including the Prospectus as a part
thereof) or any post-effective amendment thereof or in any Blue Sky Application a material fact
required to be stated therein or necessary to make the statements therein not misleading, or (c)
any untrue statement or alleged untrue statement of a material fact contained in any preliminary
prospectus, if used prior to the effective date of the Registration Statement, or in the
Prospectus, or in any amendment or supplement to the Prospectus or the omission or alleged omission
to state therein a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading in
each case to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company or the Dealer Manager by or on behalf of such Dealer
specifically for use with reference to such Dealer in the preparation of the Registration Statement
or any such post-effective amendments thereof or any such Blue Sky Application or any such
preliminary prospectus or the Prospectus or any such amendment thereof or supplement thereto, or
(d) any unauthorized use of sales materials or use of unauthorized verbal representations
concerning the Shares by such Dealer or Dealer’s representatives or agents in violation of Section
VII of the Selected Dealer Agreement in substantially the form attached hereto as Exhibit A
or otherwise, or (e) any failure to comply with applicable laws governing money laundry abatement
and anti-terrorist financing efforts, including applicable FINRA rules, SEC rules and the USA
PATRIOT Act of 2001, and will reimburse the Company and the Dealer Manager and any such directors
or officers, or controlling person, in connection with investigating or defending any such Loss or
action. This indemnity agreement will be in addition to any liability which such Dealer may
otherwise have.

     4.4 Promptly after receipt by an indemnified party under this Section 4 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 4, notify in writing the indemnifying party
of the commencement thereof and the omission so to notify the indemnifying party will relieve such
indemnifying party from any liability under this Section 4 as to the particular item for which
indemnification is then being sought, but not from any other liability which it may have to any
indemnified party. In case any such action is brought against any indemnified party, and it
notifies an

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indemnifying party of the commencement thereof, the indemnifying party will be entitled, to
the extent it may wish, jointly with any other indemnifying party similarly notified, to
participate in the defense thereof, with separate counsel. Such participation shall not relieve
such indemnifying party of the obligation to reimburse the indemnified party for reasonable legal
and other expenses (subject to Section 4.5) incurred by such indemnified party in defending itself,
except for such expenses incurred after the indemnifying party has deposited funds sufficient to
effect the settlement, with prejudice, of the claim in respect of which indemnity is sought. Any
such indemnifying party shall not be liable to any such indemnified party on account of any
settlement of any claim or action effected without the consent of such indemnifying party.

     4.5 The indemnifying party shall pay all legal fees and expenses of the indemnified party in
the defense of such claims or actions; provided, however, that the indemnifying party shall not be
obligated to pay legal expenses and fees to more than one law firm in connection with the defense
of similar claims arising out of the same alleged acts or omissions giving rise to such claims
notwithstanding that such actions or claims are alleged or brought by one or more parties against
more than one indemnified party. If such claims or actions are alleged or brought against more
than one indemnified party, then the indemnifying party shall only be obliged to reimburse the
expenses and fees of the one law firm that has been selected by a majority of the indemnified
parties against which such action is finally brought; and in the event a majority of such
indemnified parties is unable to agree on which law firm for which expenses or fees will be
reimbursable by the indemnifying party, then payment shall be made to the first law firm of record
representing an indemnified party against the action or claim. Such law firm shall be paid only to
the extent of services performed by such law firm and no reimbursement shall be payable to such law
firm on account of legal services performed by another law firm.

     4.6 If the indemnity agreements contained in this Section 4 are for any reason unavailable to
or insufficient to hold harmless an indemnified party in respect of any Losses or expenses referred
to therein, then each indemnifying party shall contribute to the aggregate amount of such Losses
and expenses incurred by such indemnified party, as incurred, (a) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and the Dealer
Manager or Dealer on the other hand from the offering of the Shares in question or (b) if the
allocation provided by clause (a) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (a) but also the
relative fault of the Company on the one hand and of the Dealer Manager or Dealer on the other hand
in connection with the statements or omissions which resulted in such Losses or expenses, as well
as any other relevant equitable considerations.

     The relative benefits received by the Company on the one hand, and the Dealer Manager or
Dealer on the other hand, in connection with the Offering shall be deemed to be in the same
respective proportions as the total net proceeds from the Offering (before deducting expenses)
received by the Company and the total selling commission and any dealer manager fee actually
received by the Dealer Manager or Dealer, in each case as set forth on the cover of the Prospectus,
bear to the aggregate public offering price of the Shares as set forth on such cover. The relative
fault of the Company on the one hand, and the Dealer Manager or Dealer on the other hand, shall be
determined by reference to, among other things, whether any such untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Dealer Manager or Dealer and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.
It is understood that it would not be just and equitable if contribution pursuant to this Section 4
were determined by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 4. The aggregate amount
of Losses and expenses incurred by an indemnified party and referred to above in this Section 4
shall be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any investigation or

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proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 4, the Dealer Manager or Dealer shall not be
required to contribute any amount in excess of the amount by which the total price at which the
Shares sold by it exceeds the amount of any damages that such Dealer Manager or Dealer has
otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission
or alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

     For purposes of this Section 4, each director of the Company, each other person who signed the
Registration Statement, and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act shall have the same rights to contribution as the Company, and
each person, if any, who controls the Dealer Manager or any Dealer within the meaning of Section 15
of the Securities Act shall have the same rights to contribution as such Dealer Manager or Dealer.

5. Survival of Provisions

     The respective agreements, representations and warranties of the Company and the Dealer
Manager set forth in this Agreement shall remain operative and in full force and effect regardless
of (a) any investigation made by or on behalf of the Dealer Manager or any Dealer or any person
controlling the Dealer Manager or any Dealer or by or on behalf of the Company or any person
controlling the Company, and (b) the acceptance of any payment for the Shares.

6. Applicable Law; Venue

     This Agreement was executed and delivered in, and its validity, interpretation and
construction shall be governed by the laws of, the State of Arizona; provided however, that causes
of action for violations of federal or state securities laws shall not be governed by this Section.
Venue for any action brought hereunder shall lie exclusively in Phoenix, Arizona.

7. Counterparts

     This Agreement may be executed in any number of counterparts. Each counterpart, when executed
and delivered, shall be an original contract, but all counterparts, when taken together, shall
constitute one and the same Agreement.

8. Successors and Amendment

     8.1 This Agreement shall inure to the benefit of and be binding upon the Dealer Manager and
the Company and their respective successors. Nothing in this Agreement is intended or shall be
construed to give to any other person any right, remedy or claim, except as otherwise specifically
provided herein. This Agreement shall inure to the benefit of the Dealers to the extent set forth
in Sections 1 and 4 hereof.

     8.2 This Agreement may be amended only by the written agreement of the Dealer Manager and the
Company.

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9. Term

     This Agreement may be terminated by either party (i) immediately upon notice to the other
party in the event that the other party shall have materially failed to comply with any of the
material provisions of this Agreement on its part to be performed during the term of this Agreement
or if any of the representations, warranties, covenants or agreements of such party contained
herein shall not have been materially complied with or satisfied within the times specified or (ii)
by either party on 60 days written notice.

     In any case, this Agreement shall expire at the close of business on the effective date that
the Offering is terminated. The provisions of Section 4 hereof shall survive such termination. In
addition, the Dealer Manager, upon the expiration or termination of this Agreement, shall (i)
promptly deposit any and all funds in its possession which were received from investors for the
sale of Shares into the appropriate escrow account or, if the minimum number of Shares have been
sold and accepted by the Company, into such other account as the Company may designate; and (ii)
promptly deliver to the Company all records and documents in its possession which relate to the
Offering and are not designated as dealer copies. The Dealer Manager, at its sole expense, may
make and retain copies of all such records and documents, but shall keep all such information
confidential. The Dealer Manager shall use its best efforts to cooperate with the Company to
accomplish an orderly transfer of management of the Offering to a party designated by the Company.
Upon expiration or termination of this Agreement, the Company shall pay to the Dealer Manager all
commissions to which the Dealer Manager is or becomes entitled under Section 3 at such time as such
commissions become payable. In such event, participating broker-dealers shall only be entitled to
actual earned commissions to date.

10. Confirmation

     The Company hereby agrees and assumes the duty to confirm on its behalf and on behalf of
dealers or brokers who sell the Shares all orders for purchase of Shares accepted by the Company.
Such confirmations will comply with applicable rules of the SEC and FINRA, and will comply with
applicable laws of such other jurisdictions to the extent the Company is advised of such laws in
writing by the Dealer Manager.

11. Suitability of Investors

     The Dealer Manager will offer Shares, and in its agreements with Dealers will require that the
Dealers offer Shares, only to persons who meet the financial qualifications set forth in the
Prospectus or in any suitability letter or memorandum sent to it by the Company and will only make
offers to persons in the states in which it is advised in writing that the Shares are qualified for
sale or that such qualification is not required. In offering Shares, the Dealer Manager will, and
in its agreements with Dealers, the Dealer Manager will require that the Dealers will, comply with
the provisions of all applicable rules and regulations relating to suitability of investors,
including without limitation, the provisions of Article III.C. of the NASAA Guidelines. In making
the determinations as to suitability required by the NASAA Guidelines, the Dealer Manager may rely
on representations from (i) investment advisers who are not affiliated with a Dealer or (ii) banks
acting as trustees or fiduciaries. With respect to the maintenance of records required by the NASAA
Guidelines, the Company agrees that the Dealer Manager can satisfy its obligations by contractually
requiring such information to be maintained by the investment advisers or banks discussed in the
preceding sentence.

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12. Submission of Subscriptions

     12.1 Those persons who purchase Shares will be instructed by the Dealer Manager or the Dealer
to make their checks payable, prior to the time the Company reaches
its minimum offering, to “UMB Bank, N.A., Agent for Cole Credit Property Trust III, Inc.”
or a recognizable contraction or abbreviation thereof, including but
not limited to, “UMB Bank, N.A., f/b/o CCPT III.” After the
Company reaches its minimum offering, checks should be payable to
“Cole Credit Property Trust III, Inc.” or alternatively
“CCPT III” or “Cole.” The Dealer Manager and any Dealer receiving a check not conforming to the foregoing
instructions shall return such check directly to such subscriber not later than the end of the next
business day following its receipt. Checks received by the Dealer Manager or Dealer that conform
to the foregoing instructions shall be transmitted for deposit pursuant to one of the methods
described in this Section 12 and in accordance with the requirements set forth in Rule 15c2-4
promulgated under the Securities Exchange Act of 1934, as amended. Transmittal of received
investor funds will be made in accordance with the following procedures. The Dealer Manager may
authorize certain Dealers that are “$250,000 broker-dealers” to instruct their customers to make
their checks for Shares subscribed for payable directly to the Dealer. In such case, the Dealer
will collect the proceeds of the subscribers’ checks and issue a check for the aggregate amount of
the subscription proceeds made payable to the order of the escrow agent.

     12.2 If a Dealer conducts its internal supervisory procedures at the location where
subscription documents and checks are initially received, the Dealer shall, by noon of the business
day following receipt by the Dealer of the subscription documents and the check, forward (i) the
subscription documents to the Dealer Manager and (ii) the checks to the escrow agent.

     12.3 If a Dealer’s internal supervisory procedures are to be performed at a different location
(the “Final Review Office”), the subscription documents and check must be transmitted to the Final
Review Office by noon of the next business day following receipt of the subscription documents and
check-by the Dealer. The Final Review Office will, by the end of the second business day following
receipt by the Dealer of the subscription documents and check, forward (i) the subscription
documents to the Dealer Manager and (ii) the checks to the escrow agent.

13. Notices

     Any notice, approval, request, authorization, direction or other communication under this
Agreement shall be given in writing and shall be deemed to be delivered when delivered in person or
deposited in the United States mail, properly addressed and stamped with the required postage,
registered or certified mail, return receipt requested, to the intended recipient as set forth
below:

	 	 	 	 	 
	 

	 	If to the Company;
	 	Cole Credit Property Trust III, Inc.

2555 East Camelback Road, Suite 400

Phoenix, Arizona 85016

Attention: President
	 
	 	 	 	 
	 

	 	If to the Dealer Manager:
	 	Cole Capital Corporation

2555 East Camelback Road, Suite 400

Phoenix, Arizona 85016

Attention: President

     Any party may change its address specified above by giving the other party notice of such
change in accordance with this Section 13.

     If the foregoing correctly sets forth our understanding, please indicate your acceptance
thereof in the space provided below for that purpose, whereupon this letter and your acceptance
shall constitute a binding agreement between us as of the date first above written.

-10-

 

	 	 	 	 	 
	 	Very truly yours,

COLE CREDIT PROPERTY TRUST III, INC.

 	 
	 	By:  	/s/ Christopher H. Cole	 
	 	 	Christopher H. Cole, President 	 
	 	 	 	 
	 

Accepted and agreed as of the date first above written.

	 	 	 	 	 
	COLE CAPITAL CORPORATION

 	 	 
	By:  	/s/ Marc T. Nemer	 	 
	 	Marc T. Nemer, President 	 	 
	 	 	 	 

-11-

 

	 	 	 	 	 

EXHIBIT A

COLE CREDIT PROPERTY TRUST III, INC.

Up to 230,000,000 Shares of Common Stock

SELECTED DEALER AGREEMENT

Ladies and Gentlemen:

     Cole Capital Corporation, as the dealer manager (“Dealer Manager”) for Cole Credit Property
Trust III, Inc. (the “Company”), a Maryland corporation, invites you (the “Dealer”) to participate in
the distribution of shares of common stock (“Shares”) of the Company subject to the following
terms:

     I. Dealer Manager Agreement

     The Dealer Manager has entered into an agreement with the Company called the Dealer Manager
Agreement dated September 30, 2008, in the form attached hereto as Exhibit A (the “Dealer Manager
Agreement”). The terms of the Dealer Manager Agreement relating to the Dealer are incorporated
herein by reference as if set forth verbatim and capitalized terms not otherwise defined herein
shall have the meanings given them in the Dealer Manager Agreement. By your acceptance of this
Agreement, you will become one of the Dealers referred to in the Dealer Manager Agreement and will
be entitled and subject to the indemnification provisions contained in the Dealer Manager
Agreement, including the provisions of the Dealer Manager Agreement wherein the Dealers severally
agree to indemnify and hold harmless the Company, the Dealer Manager and each officer and director
thereof, and each person, if any, who controls the Company and the Dealer Manager within the
meaning of the Securities Act of 1933, as amended (the “Securities Act”). Except as otherwise
specifically stated herein, all terms used in this Agreement have the meanings provided in the
Dealer Manager Agreement. The Shares are offered solely through broker-dealers who are members of
the Financial Industry Regulatory Authority, Inc. (“FINRA”).

     Dealer hereby agrees to use its best efforts to sell the Shares for cash on the terms and
conditions stated in the Prospectus. Nothing in this Agreement shall be deemed or construed to
make Dealer an employee, agent, representative or partner of the Dealer Manager or of the Company,
and Dealer is not authorized to act for the Dealer Manager or the Company or to make any
representations on their behalf except as set forth in the Prospectus and such other printed
information furnished to Dealer by the Dealer Manager or the Company to supplement the Prospectus
(“supplemental information”).

     II. Submission of Orders

     Those persons who purchase Shares will be instructed by the Dealer to make their checks
payable, prior to the time the Company reaches its minimum offering,
to “UMB Bank, N.A., Agent for Cole Credit Property Trust III,
Inc.” or a recognizable contraction or abbreviation thereof,
including but not limited to, “UMB Bank, N.A., f/b/o CCPT III.”
After the Company reaches its minimum offering, checks should be
payable to “Cole Credit Property Trust III, Inc.” or
alternatively “CCPT III” or “Cole.” Any Dealer receiving a check not conforming to the foregoing instructions shall return such check
directly to such subscriber not later than the end of the next business day following its receipt.
Checks received by the Dealer that conform to the foregoing instructions shall be transmitted for
deposit pursuant to one of the methods in this Article II. The Dealer Manager may authorize
Dealer, if Dealer is a “$250,000 broker-dealer”, to instruct its customers to make its checks for
Shares subscribed for payable directly to the Dealer, in which case the Dealer will collect the
proceeds of the subscriber’s checks and issue a check made payable to the order of the escrow agent
for the aggregate amount of the subscription proceeds. Transmittal of received investor funds will
be made in accordance with the following procedures:

-1-

 

	 	(a)	 	If the Dealer conducts its internal supervisory procedures at the location
where subscription documents and checks are initially received, the Dealer shall
forward (i) the subscription documents to the Dealer Manager and (ii) the checks to the
escrow agent by the end of the next business day following receipt of the subscription
documents and the check.
	 
	 	(b)	 	If the internal supervisory procedures are to be performed at a different
location (the “Final Review Office”), the subscription documents and check must be
transmitted to the Final Review Office by the end of the next business day following
receipt by the Dealer of the subscription documents and check. The Final Review Office
will, by the end of the next business day following receipt by the Final Review Office
of the subscription documents and check, forward both the subscription documents and
check to the Dealer Manager as processing broker-dealer in order that the Dealer
Manager may complete its review of the documentation and process the subscription
documents and check.

     If requested by the Company or the Dealer Manager, the Dealer shall obtain from subscribers
for the Shares, other documentation reasonably deemed by the Company or the Dealer Manager to be
required under applicable law or as may be necessary to reflect the policies of the Company or the
Dealer Manager. Such documentation may include, without limitation, subscribers’ written
acknowledgement and agreement to the privacy policies of the Company or the Dealer Manager.

     III. Pricing

     Except for discounts described in or as otherwise provided in the “Plan of Distribution”
section of the Prospectus, 230,000,000 Shares shall be offered to the public at the offering price of
$10.00 per Share, payable in cash pursuant to the primary offering
and up to 20,000,000 Shares will be offered
pursuant to the Company’s distribution reinvestment plan at the higher of 95% of the estimated
value of a share of the Company’s common stock, as estimated by the Company’s board of directors,
or $9.50 per Share. Except as otherwise indicated in the Prospectus or in any letter or memorandum
sent to the Dealer by the Company or Dealer Manager, a minimum initial purchase of 250 Shares is
required. Except as otherwise indicated in the Prospectus, additional investments may be made in
cash in minimal increments of at least 100 Shares. The Shares are nonassessable. The Dealer
hereby agrees to place any order for the full purchase price.

     IV. Dealers’ Commissions

     Except for discounts described in or as otherwise provided in the “Plan of Distribution”
section of the Prospectus, the Dealer’s selling commission applicable to the total public offering
price of Shares sold by Dealer which it is authorized to sell hereunder is 7.0% of the gross
proceeds of Shares sold by it and accepted and confirmed by the Company (no selling commissions for
Shares sold pursuant to the Company’s distribution reinvestment plan), which commission will be
paid by the Dealer Manager. For these purposes, a “sale of Shares” shall occur if, and only if, a
transaction has closed with a securities purchaser pursuant to all applicable offering and
subscription documents and the Company has thereafter distributed the commission to the Dealer
Manager in connection with such transaction. The Dealer hereby waives any and all rights to
receive payment of commissions due until such time as the Dealer Manager is in receipt of the
commission from the Company. The Dealer affirms that the Dealer Manager’s liability for
commissions payable is limited solely to the proceeds of commissions receivable associated
therewith. In addition, as set forth in the Prospectus, the Dealer Manager may, in its sole
discretion, reallow out of its dealer manager fee a marketing fee and due diligence expense
reimbursement a portion the dealer manager fee, based on such factors as the number of Shares sold
by

-2-

 

such participating Dealer, the assistance of such participating Dealer in marketing the
offering of Shares, and bona fide conference fees incurred.

     Dealer acknowledges and agrees that no commissions, payments or amount whatsoever will be paid
to the Dealer unless or until the gross proceeds of the Shares sold are disbursed to the Company
pursuant to [paragraph 3(a) of the Escrow Agreement]. Until the Required Capital or the
Pennsylvania Required Capital, as applicable and as defined in the Escrow Agreement, is obtained,
investments will be held in escrow and, if the Required Capital or the Pennsylvania Required
Capital, as applicable, is not obtained, investments will be returned to the investors in
accordance with the Prospectus.

     The parties hereby agree that the foregoing commission is not in excess of the usual and
customary distributors’ or sellers’ commission received in the sale of securities similar to the
Shares, that Dealer’s interest in the offering is limited to such commission from the Dealer
Manager and Dealer’s indemnity referred to in Section 4 of the Dealer Manager Agreement, that the
Company is not liable or responsible for the direct payment of such commission to the Dealer.

     V. Payment

     Payments of selling commissions will be made by the Dealer Manager (or by the Company as
provided in the Dealer Manager Agreement) to Dealer within 30 days of the receipt by the Dealer
Manager of the gross commission payments from the Company. Dealer acknowledges that if the Company
pays selling commissions to the Dealer Manager, the Company is relieved of any obligation for
selling commissions to the Dealer. The Company may rely on and use the preceding acknowledgement
as a defense against any claim by Dealer for selling commissions Company pays to Dealer Manager but
that Dealer Manager fails to remit to Dealer.

     VI. Right to Reject Orders or Cancel Sales

     All orders, whether initial or additional, are subject to acceptance by and shall only become
effective upon confirmation by the Company, which reserves the right to reject any order for any or
no reason. Orders not accompanied by a Subscription Agreement/Signature Page and the required
check in payment for the Shares may be rejected. Issuance and delivery of the Shares will be made
only after actual receipt of payment therefor. If any check is not paid upon presentment, or if
the Company is not in actual receipt of clearinghouse funds or cash, certified or cashier’s check
or the equivalent in payment for the Shares within 15 days of sale, the Company reserves the right
to cancel the sale without notice. In the event an order is rejected, canceled or rescinded for
any reason, the Dealer agrees to return to the Dealer Manager any commission theretofore paid with
respect to such order.

     VII. Prospectus and Supplemental Information

     Dealer is not authorized or permitted to give and will not give, any information or make any
representation concerning the Shares except as set forth in the Prospectus and supplemental
information. The Dealer Manager will supply Dealer with reasonable quantities of the Prospectus,
any amendments or supplements thereto, as well as any supplemental information, for delivery to
investors, and Dealer will deliver a copy of the Prospectus and all supplements thereto and any
amended Prospectus to each investor to whom an offer is made prior to or simultaneously with the
first solicitation of an offer to sell the Shares to an investor. The Dealer agrees that it will
not send or give any supplemental information to an investor unless it has previously sent or given
a Prospectus to that investor or has simultaneously sent or given a Prospectus with such
supplemental information. Dealer agrees that it will not show or give to any investor or
prospective investor or reproduce any material or writing which is supplied to it by the Dealer
Manager and marked “dealer only” or otherwise bearing a legend denoting that it is not to be used
in

-3-

 

connection with the sale of Shares to any prospective investor or members of the public.
Dealer agrees that it will not use in connection with the offer or sale of Shares any material or
writing which relates to another company supplied to it by the Company or the Dealer Manager
bearing a legend which states that such material may not be used in connection with the offer or
sale of any securities other than the company to which it relates. Dealer further agrees that it
will not use in connection with the offer or sale of Shares any materials or writings which have
not been previously approved by the Dealer Manager. Each Dealer agrees, if the Dealer Manager so
requests, to furnish a copy of any revised preliminary Prospectus to each person to whom it has
furnished a copy of any previous preliminary Prospectus, and further agrees that it will itself
mail or otherwise deliver all preliminary and final Prospectuses required for compliance with the
provisions of Rule 15c2-8 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). Regardless of the termination of this Agreement, Dealer will deliver a Prospectus in
transactions in the Shares for a period of 90 days from the effective date of the Registration
Statement or such longer period as may be required by the Exchange Act or the rules and regulations
thereunder. On becoming a Dealer, and in offering and selling Shares, Dealer agrees to comply with
all the applicable requirements under the Securities Act and the Exchange Act. Notwithstanding the
termination of this Agreement or the payment of any amount to Dealer, Dealer agrees to pay Dealer’s
proportionate share of any claim, demand or liability asserted against Dealer and the other Dealers
on the basis that Dealers or any of them constitute an association, unincorporated business or
other separate entity, including in each case Dealer’s proportionate share of any expenses incurred
in defending against any such claim, demand or liability.

     VIII. License and Association Membership

     Dealer’s acceptance of this Agreement constitutes a representation to the Company and the
Dealer Manager that Dealer is a properly registered or licensed broker-dealer, duly authorized to
sell Shares under Federal and state securities laws and regulations and in all states where it
offers or sells Shares, and that it is a member in good standing of FINRA. This Agreement shall
automatically terminate if the Dealer ceases to be a member in good standing of such association,
or in the case of a foreign dealer, so to conform. Dealer agrees to notify the Dealer Manager
immediately if Dealer ceases to be a member in good standing, or in the case of a foreign dealer,
so to conform. The Dealer Manager also hereby agrees to comply with the Conduct Rules of FINRA,
including but not limited to Rules 2730, 2740, 2420 and 2750.

     IX. Anti-Money Laundering Compliance Programs

     Dealer represents to the Company and the Dealer Manager that Dealer has established and
implemented anti-money laundering compliance programs in accordance with applicable law, including
applicable FINRA rules, SEC rules and the USA PATRIOT Act of 2001, reasonably expected to detect
and cause the reporting of suspicious transactions in connection with the sale of Shares of the
Company.

     X. Limitation of Offer

     Dealer will offer Shares only to persons who meet the qualifications set forth in the
Prospectus or in any suitability letter or memorandum sent to it by the Company or the Dealer
Manager and will only make offers to persons in the states in which it is advised in writing that
the Shares are qualified for sale or that such qualification is not required. In offering Shares,
Dealer will comply with the provisions of the FINRA Conduct Rules, as well as all other applicable
rules and regulations relating to suitability of investors, including without limitation, the
provisions of Article III.C. of the Statement of Policy Regarding Real Estate Investment Trusts of
the North American Securities Administrators Association, Inc.

-4-

 

     XI. Termination

     Dealer will suspend or terminate its offer and sale of Shares upon the request of the Company
or the Dealer Manager at any time and will resume its offer and sale of Shares hereunder upon
subsequent request of the Company or the Dealer Manager. Any party may terminate this Agreement by
written notice. Such termination shall be effective 48 hours after the mailing of such notice.
This Agreement is the entire agreement of the parties and supersedes all prior agreements, if any,
between the parties hereto.

     This Agreement may be amended at any time by the Dealer Manager by written notice to the
Dealer, and any such amendment shall be deemed accepted by Dealer upon placing an order for sale of
Shares after he has received such notice.

     XII. Privacy Laws

     The Dealer Manager and Dealer (each referred to individually in this section as “party”) agree
as follows:

	 	(a)	 	Each party agrees to abide by and comply with (i) the privacy standards and
requirements of the Gramm-Leach-Bliley Act of 1999 (“GLB Act”), (ii) the privacy
standards and requirements of any other applicable Federal or state law, and (iii) its
own internal privacy policies and procedures, each as may be amended from time to time.
	 
	 	(b)	 	Each party agrees to refrain from the use or disclosure of nonpublic personal
information (as defined under the GLB Act) of all customers who have opted out of such
disclosures except as necessary to service the customers or as otherwise necessary or
required by applicable law; and
	 
	 	(c)	 	Each party shall be responsible for determining which customers have opted out
of the disclosure of nonpublic personal information by periodically reviewing and, if
necessary, retrieving a list of such customers (the “List”) as provided by each to
identify customers that have exercised their opt-out rights. In the event either party
uses or discloses nonpublic personal information of any customer for purposes other
than servicing the customer, or as otherwise required by applicable law, that party
will consult the List to determine whether the affected customer has exercised his or
her opt-out rights. Each party understands that each is prohibited from using or
disclosing any nonpublic personal information of any customer that is identified on the
List as having opted out of such disclosures.

     XIII. Notice

     All notices will be in writing and will be duly given to the Dealer Manager when mailed to
2555 Camelback Road, Suite 400, Phoenix, Arizona 85016, and to Dealer when mailed to the address
specified by Dealer herein.

     XIV. Attorneys’ Fees, Applicable Law and Venue

     In any action to enforce the provisions of this Agreement or to secure damages for its breach,
the prevailing party shall recover its costs and reasonable attorney’s fees. This Agreement shall
be construed under the laws of the State of Arizona and shall take effect when signed by Dealer and
countersigned by the Dealer Manager. Venue for any action (including arbitration) brought
hereunder shall lie exclusively in Phoenix, Arizona.

-5-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on its behalf
by its duly authorized agent.

	 	 	 	 	 
	 	THE DEALER MANAGER:

COLE CAPITAL CORPORATION

 	 
	 	By:  	/s/ Marc T. Nemer	 
	 	 	Marc T. Nemer, President 	 
	 	 	 	 

-6-

 

	 	 	 	 	 

EXHIBIT A

Dealer Manager Agreement

-7-

 

We have read the foregoing Agreement and we hereby accept and agree to the terms and conditions
therein set forth. We hereby represent that the list below of jurisdictions in which we are
registered or licensed as a broker or dealer and are fully authorized to sell securities is true
and correct, and we agree to advise you of any change in such list during the term of this
Agreement.

1. Identity of Dealer:

	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 	 	 	 	 
	Type of entity:	 	 	 	 
	 
	 

	 	 	 	(corporation, partnership, proprietorship, etc.) 

	 	 

Organized in the State of:                                                   
                                                                  
                                    

Licensed as broker-dealer in the
following States:                                                    
                                                                 

                                                                             
                                                                                                                       

Tax I.D. #:                                                         
                                                                                 
                                        

2. Person to receive notice pursuant to Section XIII:

Name:                                                            
                                                                       
                                                      

Company:                                                                       
                                                        
                                                     

Address:                                                                       
                                                        
                                                       

City, State and Zip Code:                                                            
                                                                                              
 

Telephone No.:                                                                      
                                                                                                     
 

Facsimile No.:                                                                                        
                                         
                                            

Email Address:                                                                                        
                                
                                                     

	 	 	 	 	 
	AGREED TO AND ACCEPTED BY THE DEALER:

 	 	 
	
 	 	 
	(Dealer’s Firm Name) 	 	 
	 	 	 
	By:  	 	 	 
	 	                Signature 	 	 
	 	 	 
	 	Name:  	 	 	 
	 	 	 
	 	Title:  	 	 	 
	 	 	 
	 

-8-

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