Document:

Exhibit 10.23

 

EXHIBIT 10.23

Prepared By/Return To:

Sheppard, Mullin, Richter & Hampton
llp

650 Town Center Drive, 4th Floor

Costa Mesa, California 92626-1993

Attn: Kenneth D. Fox, Esquire

 
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

DEED OF TRUST, ASSIGNMENT

SECURITY AGREEMENT AND

FIXTURE FILING

by

NNN WESTERN PLACE, LLC, a Delaware limited liability company

(Organizational Identification Number 3776466),

NNN WESTERN PLACE 1, LLC, a Delaware limited liability company

(Organizational Identification Number 3824095),

NNN WESTERN PLACE 2, LLC, a Delaware limited liability company

(Organizational Identification Number 3824096),

NNN WESTERN PLACE 3, LLC, a Delaware limited liability company

(Organizational Identification Number 3824099),

NNN WESTERN PLACE 4, LLC, a Delaware limited liability company

(Organizational Identification Number 3824100),

NNN WESTERN PLACE 5, LLC, a Delaware limited liability company

(Organizational Identification Number 3824101),

NNN WESTERN PLACE 6, LLC, a Delaware limited liability company

(Organizational Identification Number 3824102),

NNN WESTERN PLACE 7, LLC, a Delaware limited liability company

(Organizational Identification Number 3824103), and

GREIT — WESTERN PLACE, LP, a Texas limited partnership

(Organizational Identification Number 800353572),

as Grantor,

to

TRSTE, INC., a Virginia corporation

as Trustee

in favor of

WACHOVIA BANK, NATIONAL ASSOCIATION,

a national banking association,

as Beneficiary

This document serves as a Fixture Filing under the Texas Uniform Commercial Code.

 

 

Deed of Trust, Assignment, Security Agreement and Fixture Filing

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE

FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS

FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE

NUMBER.

THIS INSTRUMENT CONTAINS INDEMNIFICATION PROVISIONS AND PROVISIONS LIMITING BENEFICIARY’S LIABILITY

FOR NEGLIGENCE.

     This Deed of Trust, Assignment, Security Agreement and Fixture Filing is made as of the 15th
day of February, 2008, by NNN WESTERN PLACE, LLC, a Delaware limited liability company, NNN WESTERN
PLACE 1, LLC, a Delaware limited liability company, NNN WESTERN PLACE 2, LLC, a Delaware limited
liability company, NNN WESTERN PLACE 3, LLC, a Delaware limited liability company, NNN WESTERN
PLACE 4, LLC, a Delaware limited liability company, NNN WESTERN PLACE 5, LLC, a Delaware limited
liability company, NNN WESTERN PLACE 6, LLC, a Delaware limited liability company, NNN WESTERN
PLACE 7, LLC, a Delaware limited liability company, and GREIT — WESTERN PLACE, LP, a Texas limited
partnership (individually and collectively herein referred to as “Grantor”), whose address
is c/o Grubb & Ellis Realty Investors, LLC, 1551 N. Tustin Avenue, Suite 300, Santa Ana, California
92705, to the TRSTE, INC., a Virginia corporation (“Initial Trustee”), whose address is 301
South Tryon Street, Charlotte, North Carolina 28288, for the benefit of WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association (“Beneficiary”), whose address is Wachovia
Bank, N.A., Real Estate Financial Services, General Banking Group, Mail Code: CA 6233, 15750 Alton
Parkway, Irvine, California 92618.

Recitals

     Grantor has requested that Beneficiary make the Loan (as hereinafter defined) to Grantor. As
a condition precedent to making the Loan, Beneficiary has required that Grantor execute and deliver
this Deed of Trust, Assignment, Security Agreement and Fixture Filing to Trustee for the benefit of
Beneficiary.

Grants and Agreements

     Now, therefore, in order to induce Beneficiary to make the Loan to Grantor, Grantor agrees as
follows:

Article I

Definitions

     As used in this Deed of Trust, the terms defined in the Preamble hereto shall have the
respective meanings specified therein, and the following additional terms shall have the meanings
specified:

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     “Accessories” means all fixtures, equipment, systems, machinery, furniture,
furnishings, appliances, inventory, goods, building and construction materials, supplies and other
articles of personal property, of every kind and character, tangible and intangible (including
software embedded therein), now owned or hereafter acquired by Grantor, which are now or hereafter
attached to or situated in, on or about the Land or Improvements, or used in or necessary to the
complete and proper planning, development, use, occupancy or operation thereof, or acquired
(whether delivered to the Land or stored elsewhere) for use or installation in or on the Land or
Improvements, and all Additions to the foregoing, all of which are hereby declared to be permanent
accessions to the Land.

     “Accelerating Transfer” means any Transfer of all or any part of the Property, the
legal or beneficial interest therein, or any membership interest in Grantor in violation of
Section 5.2 of this Deed of Trust.

     “Accounts” means all accounts of Grantor, within the meaning of the Uniform Commercial
Code of the State, derived from or arising out of the use, occupancy or enjoyment of the Property
or for services rendered therein or thereon.

     “Additions” means any and all alterations, additions, accessions and improvements to
property, substitutions therefor, and renewals and replacements thereof.

     “Beneficiary” means Beneficiary and its successors and assigns.

     “Claim” means any liability, suit, action, claim, demand, loss, expense, penalty,
fine, judgment or other cost of any kind or nature whatsoever, including fees, costs and expenses
of attorneys, consultants, contractors and experts.

     “Condemnation” means any taking of title to, use of, or any other interest in the
Property under the exercise of the power of condemnation or eminent domain, whether temporarily or
permanently, by any Governmental Authority or by any other Person acting under or for the benefit
of a Governmental Authority.

     “Condemnation Awards” means any and all judgments, awards of damages (including
severance and consequential damages), payments, proceeds, settlements, amounts paid for a taking in
lieu of Condemnation, or other compensation heretofore or hereafter made, including interest
thereon, and the right to receive the same, as a result of, or in connection with, any Condemnation
or threatened Condemnation.

     “Deed of Trust” means this Deed of Trust, Assignment, Security Agreement and Fixture
Filing, as the same may from time to time be extended, amended, restated, supplemented or otherwise
modified.

     “Default” means an event or circumstance which, with the giving of Notice or lapse of
time, or both, would constitute an Event of Default under the provisions of this Deed of Trust.

     “Design and Development Documents” means, collectively, (a) all contracts for services
to be rendered, work to be performed or materials to be supplied in the development of the Land or
the construction or repair of Improvements, if any; (b) all plans, drawings and specifications

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for the development of the Land or the construction or repair of Improvements, if any; (c) all
permits, licenses, variances and other rights or approvals issued by or obtained from any
Governmental Authority or other Person in connection with the development of the Land or the
construction or repair of Improvements, if any; and (d) all amendments of or supplements to any of
the foregoing.

     “Encumbrance” means any Lien, easement, right of way, roadway (public or private),
condition, covenant or restriction (including any condition, covenant or restriction imposed in
connection with any condominium development or cooperative housing development), Lease or other
matter of any nature that would affect title to the Property.

     “Environmental Agreement” means the Environmental Indemnity Agreement of even date
herewith by and between Grantor and Guarantor in favor of Beneficiary pertaining to the Property,
as the same may from time to time be extended, amended, restated, supplemented or otherwise
modified. The Environmental Agreement is one of the Loan Documents, but this Deed of Trust does
not secure the obligations of Grantor or Guarantor under the Environmental Agreement.

     “Event of Default” means an event or circumstance specified in Article VI and
the continuance of such event or circumstance beyond the applicable grace and/or cure periods
therefor, if any, set forth in Article VI.

     “Expenses” means all fees, charges, costs and expenses of any nature whatsoever
incurred at any time and from time to time (whether before or after an Event of Default) by
Beneficiary or Trustee in making, funding, administering or modifying the Loan, in negotiating or
entering into any “workout” of the Loan, or in exercising or enforcing any rights, powers and
remedies provided in this Deed of Trust or any of the other Loan Documents, including attorneys’
fees, court costs, receiver’s fees, management fees and costs incurred in the repair, maintenance
and operation of, or taking possession of, or selling, the Property.

     “Governmental Authority” means any governmental or quasi-governmental entity,
including any court, department, commission, board, bureau, agency, administration, service,
district or other instrumentality of any governmental entity.

     “Guarantor” means, individually and collectively, Gary H. Hunt, W. Brand Inlow, Edward
A. Johnson, D. Fleet Wallace, and Gary T. Wescombe, as Trustees of the G REIT Liquidating Trust
dated January 22, 2008, and NNN Realty Advisors, Inc., a Delaware corporation.

     “Improvements” means all buildings, structures and other improvements now or hereafter
existing, erected or placed on the Land, together with any off-site improvements owned by Grantor
in any way used or to be used in connection with the use, enjoyment, occupancy or operation of the
Land.

     “Insurance Proceeds” means the insurance claims under and the proceeds of any and all
policies of insurance covering the Property or any part thereof, including all returned and
unearned premiums with respect to any insurance relating to such Property, in each case whether now
or hereafter existing or arising.

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     “Land” means the real property described in Exhibit A attached hereto and made a part
hereof.

     “Laws” means all federal, state and local laws, statutes, rules, ordinances,
regulations, codes, licenses, authorizations, decisions, injunctions, interpretations, orders or
decrees of any court or other Governmental Authority having jurisdiction as may be in effect from
time to time.

     “Leases” means all leases, license agreements and other occupancy or use agreements
(whether oral or written), now or hereafter existing, which cover or relate to the Property or any
part thereof, together with all options therefor, amendments thereto and renewals, modifications
and guaranties thereof, including any cash or security deposited under the Leases to secure
performance by the tenants of their obligations under the Leases, whether such cash or security is
to be held until the expiration of the terms of the Leases or applied to one or more of the
installments of rent coming due thereunder.

     “Letter of Credit” means any letter of credit issued by Beneficiary for the account of
Grantor or its nominee in connection with the Property, together with any and all extensions,
renewals or modifications thereof, substitutions therefor or replacements thereof.

     “Lien” means any mortgage, deed of trust, pledge, security interest, assignment,
judgment, lien or charge of any kind, including any conditional sale or other title retention
agreement, any lease in the nature thereof, and the filing of, or agreement to give, any financing
statement under the Uniform Commercial Code of any jurisdiction.

     “Loan” means the loan from Beneficiary to Grantor, the repayment obligations in
connection with which are evidenced by the Note.

     “Loan Agreement” means the Loan Agreement of even date herewith between Grantor and
Beneficiary which sets forth, among other things, the terms and conditions upon which the proceeds
of the Loan will be disbursed, as the same may from time to time be extended, amended, restated,
supplemented or otherwise modified.

     “Loan Documents” means this Deed of Trust, the Note, the Repayment Guaranty, the
Environmental Agreement, the Loan Agreement, any application or reimbursement agreement executed in
connection with any Letter of Credit, and any and all other documents (other than any Swap
Contracts) which Grantor, Guarantor or any other party or parties have executed and delivered, or
may hereafter execute and deliver, to evidence, secure or guarantee the Obligations, or any part
thereof, as the same may from time to time be extended, amended, restated, supplemented or
otherwise modified.

     “Note” means the Promissory Note of even date herewith in the original principal
amount of Twenty-Eight Million Thousand and No/100 Dollars ($28,000,000.00) made by Grantor to the
order of Beneficiary, as the same may from time to time be extended, amended, restated,
supplemented or otherwise modified.

     “Notice” means a notice, request, consent, demand or other communication given in
accordance with the provisions of Section 9.8 of this Deed of Trust.

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     “Obligations” means all present and future debts, obligations and liabilities of
Grantor to Beneficiary and/or Trustee arising pursuant to, and/or on account of, the provisions of
this Deed of Trust, the Note or any of the other Loan Documents, including the obligations: (a) to
pay all principal, interest, late charges, prepayment premiums (if any) and other amounts due at
any time under the Note; (b) to pay all Expenses, indemnification payments, fees and other amounts
due at any time under this Deed of Trust or any of the other Loan Documents, together with interest
thereon as herein or therein provided; (c) to pay and perform all obligations of Grantor under any
Swap Contract; (d) to perform, observe and comply with all of the other terms, covenants and
conditions, expressed or implied, which Grantor is required to perform, observe or comply with
pursuant to this Deed of Trust or any of the other Loan Documents; and (e) to pay and perform all
future advances and other obligations that Grantor or any successor in ownership of all or part of
the Property may agree to pay and/or perform (whether as principal, surety or guarantor) for the
benefit of Beneficiary, when a writing evidences the parties’ agreement that the advance or
obligation be secured by this Deed of Trust; excluding, however, the debts,
obligations and liabilities of Grantor under the Environmental Agreement. This Deed of Trust does
not secure the Environmental Agreement, the Repayment Guaranty or any other Loan Document that is
expressly stated to be unsecured.

     “Permitted Encumbrances” means (a) any matters set forth in any policy of title
insurance issued to Beneficiary and insuring Beneficiary’s interest in the Property which are
acceptable to Beneficiary as of the date hereof, (b) the Liens and interests of this Deed of Trust,
and (c) any other Encumbrance that Beneficiary shall expressly approve in writing in its sole and
absolute discretion.

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

     “Personalty” means all personal property of any kind or nature whatsoever, whether
tangible or intangible and whether now owned or hereafter acquired, in which Grantor now has or
hereafter acquires an interest and which is used in the construction of, or is placed upon, or is
derived from or used in connection with the maintenance, use, occupancy or enjoyment of, the
Property, including (a) the Accessories; (b) the Accounts; (c) all franchise, license, management
or other agreements with respect to the operation of the Real Property or the business conducted
therein (provided all of such agreements shall be subordinate to this Deed of Trust, and
Beneficiary shall have no responsibility for the performance of Grantor’s obligations thereunder)
and all general intangibles (including payment intangibles, trademarks, trade names, goodwill,
software and symbols but excluding all of Grantor’s rights to the payment of money to Grantor under
any Swap Contracts) related to the Real Property or the operation thereof; (d) all sewer and water
taps, appurtenant water stock or water rights, allocations and agreements for utilities, bonds,
letters of credit, permits, certificates, licenses, guaranties, warranties, causes of action,
judgments, Claims, profits, security deposits, utility deposits, and all rebates or refunds of
fees, Taxes, assessments, charges or deposits paid to any Governmental Authority related to the
Real Property or the operation thereof; (e) all insurance policies held by Grantor with respect to
the Property or Grantor’s operation thereof; and (f) all money, instruments and documents (whether
tangible or electronic) arising from or by virtue of any transactions related to the Property, and
all deposits and deposit accounts of Grantor with Beneficiary related to the Property, including

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any such deposit account from which Grantor may from time to time authorize Beneficiary to
debit and/or credit payments due with respect to the Loan; together with all Additions to and
Proceeds of all of the foregoing. For purposes of clarification, “Personalty”, and the security
interests granted hereunder, do not include any of Grantor’s rights to the payment of money from
Beneficiary (or its Affiliates) under any Swap Contracts.

     “Proceeds,” when used with respect to any of the Property, means all proceeds of such
Property, including all Insurance Proceeds and all other proceeds within the meaning of that term
as defined in the Uniform Commercial Code of the State.

     “Property” means the Real Property and the Personalty and all other rights, interests
and benefits of every kind and character which Grantor now has or hereafter acquires in, to or for
the benefit of the Real Property and/or the Personalty and all other property and rights used or
useful in connection therewith, including all Leases, all Rents, all Condemnation Awards, all
Proceeds, and all of Grantor’s right, title and interest in and to all Design and Development
Documents, all Contracts of Sale and all Refinancing Commitments.

     “Property Assessments” means all Taxes, payments in lieu of taxes, water rents, sewer
rents, assessments, condominium and owner’s association assessments and charges, maintenance
charges and other governmental or municipal or public or private dues, charges and levies and any
Liens (including federal tax liens) which are or may be levied, imposed or assessed upon the
Property or any part thereof, or upon any Leases or any Rents, whether levied directly or
indirectly or as excise taxes, as income taxes, or otherwise.

     “Real Property” means the Land and Improvements, together with (a) all estates, title
interests, title reversion rights, remainders, increases, issues, profits, rights-of-way or uses,
additions, accretions, servitudes, strips, gaps, gores, liberties, privileges, water rights, water
courses, alleys, passages, ways, vaults, licenses, tenements, franchises, hereditaments,
appurtenances, easements, rights of ingress or egress, parking rights, timber, crops, mineral
interests and other rights, now or hereafter owned by Grantor and belonging or appertaining to the
Land or Improvements; (b) all Claims whatsoever of Grantor with respect to the Land or
Improvements, either in law or in equity, in possession or in expectancy; (c) all estate, right,
title and interest of Grantor in and to all streets, roads and public places, opened or proposed,
now or hereafter adjoining or appertaining to the Land or Improvements; and (d) all options to
purchase the Land or Improvements, or any portion thereof or interest therein, and any greater
estate in the Land or Improvements, and all Additions to and Proceeds of the foregoing.

     “Refinancing Commitment” means any commitment from or other agreement with any Person
providing for the financing of the Property, some or all of the proceeds of which are intended to
be used for the repayment of all or a portion of the Loan.

     “Rents” means all of the rents, royalties, issues, profits, revenues, earnings, income
and other benefits of the Property, or arising from the use or enjoyment of the Property, including
all such amounts paid under or arising from any of the Leases and all fees, charges, accounts or
other payments for the use or occupancy of rooms or other public facilities within the Real
Property.

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     “Repayment Guaranty” means, collectively, the Repayment Guaranty of even date herewith
executed by NNN Realty Advisors, Inc., a Delaware corporation, for the benefit of Lender, as the
same may from time to time be extended, amended, restated, supplemented or otherwise modified, and
the Repayment Guaranty of even date herewith executed by the Gary H. Hunt, W. Brand Inlow, Edward
A. Johnson, D. Fleet Wallace, and Gary T. Wescombe, as Trustees of the G REIT Liquidating Trust
dated January 22, 2008, for the benefit of Lender, as the same may from time to time be extended,
amended, restated, supplemented or otherwise modified.

     “State” means the state in which the Land is located.

     “Swap Contract” means any agreement, whether or not in writing, relating to any
transaction that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap or option, bond, note or bill option, interest rate option,
forward foreign exchange transaction, interest cap, collar or floor transaction, currency swap,
cross-currency rate swap, swap option, currency option or any other similar transaction (including
any option to enter into the foregoing) or any combination of the foregoing, and, unless the
context otherwise clearly requires, any form of master agreement published by the International
Swaps and Derivatives Association, Inc., or any other master agreement, entered into between
Beneficiary (or its affiliate) and Grantor (or its affiliate) in connection with the Loan, together
with any related schedules and confirmations, as amended, supplemented, superseded or replaced from
time to time, relating to or governing any or all of the foregoing.

     “Taxes” means all taxes and assessments, whether general or special, ordinary or
extraordinary, or foreseen or unforeseen, which at any time may be assessed, levied, confirmed or
imposed by any Governmental Authority or any community facilities or other private district on
Grantor or on any of its properties or assets or any part thereof or in respect of any of its
franchises, businesses, income or profits.

     “Transfer” means any direct or indirect sale, assignment, conveyance or transfer,
whether made voluntarily or by operation of Law or otherwise, and whether made with or without
consideration.

     “Trustee” means the Initial Trustee or its successor in trust who may be acting under
and pursuant to this Deed of Trust from time to time.

Article II

Granting Clauses; Condition of Grant

     Section 2.1 Conveyances and Security Interests.

     In order to secure the prompt payment and performance of the Obligations, Grantor, as tenants
in common, (a) irrevocably and unconditionally grants, conveys, transfers and assigns to Trustee,
in trust, for the benefit of Beneficiary, with power of sale and right of entry and possession, all
estate, right, title and interest that Grantor now has or may later acquire in and to the Real
Property; (b) grants to Beneficiary a security interest in the Personalty; (c) assigns to
Beneficiary, and grants to Beneficiary a security interest in, all Condemnation Awards and all
Insurance Proceeds; and (d) assigns to Beneficiary, and grants to Beneficiary a security interest

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in, all of Grantor’s right, title and interest in, but not any of Grantor’s obligations or
liabilities under, all Design and Development Documents, all Contracts of Sale and all Refinancing
Commitments. All Persons who may have or acquire an interest in all or any part of the Property
will be deemed to have notice of, and will be bound by, the terms of the Obligations and each other
agreement or instrument made or entered into in connection with each of the Obligations. Such
terms include any provisions in the Note, the Loan Agreement or any Swap Contract which provide
that the interest rate on one or more of the Obligations may vary from time to time. Unless Lender
otherwise agrees in writing, Grantor’s obligations under any Swap Contract shall continue to be
secured by this Deed of Trust notwithstanding that Lender has sold, participated, syndicated or
otherwise transferred or released some or all of its interest in the Loan to another person.

     Section 2.2 Absolute Assignment of Leases and Rents.

     In consideration of the making of the Loan by Beneficiary to Grantor and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor
absolutely and unconditionally assigns the Leases and Rents to Beneficiary. This assignment is,
and is intended to be, an unconditional, absolute and present assignment from Grantor to
Beneficiary of all of Grantor’s right, title and interest in and to the Leases and the Rents and
not an assignment in the nature of a pledge of the Leases and Rents or the mere grant of a security
interest therein. So long as no Event of Default shall exist, however, and so long as Grantor is
not in default in the performance of any obligation, covenant or agreement contained in the Leases,
Grantor shall have a license (which license shall terminate automatically and without notice upon
the occurrence of an Event of Default or a default by Grantor under the Leases) to collect, but not
prior to accrual, all Rents. Grantor agrees to collect and hold all Rents in trust for Beneficiary
and to use the Rents for the payment of the cost of operating and maintaining the Property and for
the payment of the other Obligations before using the Rents for any other purpose.

     Section 2.3 Security Agreement, Fixture Filing and Financing Statement.

     This Deed of Trust creates a security interest in the Personalty, and, to the extent the
Personalty is not real property, this Deed of Trust constitutes a security agreement from Grantor
to Beneficiary under the Uniform Commercial Code of the State. In addition to all of its other
rights under this Deed of Trust and otherwise, Beneficiary shall have all of the rights of a
secured party under the Uniform Commercial Code of the State, as in effect from time to time, or
under the Uniform Commercial Code in force from time to time in any other state to the extent the
same is applicable Law. This Deed of Trust shall be effective as a financing statement filed as a
fixture filing with respect to all fixtures included within the Property and is to be filed for
record in the real estate records of each county where any part of the Property (including such
fixtures) is situated. This Deed of Trust shall also be effective as a financing statement with
respect to any other Property as to which a security interest may be perfected by the filing of a
financing statement and may be filed as such in any appropriate filing or recording office. The
respective mailing addresses of Grantor and Beneficiary are set forth in the opening paragraph of
this Deed of Trust. A carbon, photographic or other reproduction of this Deed of Trust or any
other financing statement relating to this Deed of Trust shall be sufficient as a financing
statement for any of the purposes referred to in this Section. Grantor hereby irrevocably
authorizes

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Beneficiary at any time and from time to time to file any initial financing statements,
amendments thereto and continuation statements as authorized by applicable Law, reasonably required
by Beneficiary to establish or maintain the validity, perfection and priority of the security
interests granted in this Deed of Trust. The foregoing authorization includes Grantor’s
irrevocable authorization for Beneficiary at any time and from time to time to file any initial
financing statements and amendments thereto that indicate the Personalty (a) as “all assets” of
Grantor or words of similar effect, regardless of whether any particular asset comprised in the
Personalty falls within the scope of the Uniform Commercial Code of the State or the jurisdiction
where the initial financing statement or amendment is filed, or (b) as being of an equal or lesser
scope or with greater detail; provided that in either case, such description is limited to assets
used on or in connection with the Property.

     Section 2.4 Reconveyance of Deed of Trust and Termination of Assignments and Financing
Statements.

     If and when Grantor has paid and performed all of the Obligations, and no further advances are
to be made under the Loan Agreement and all Swap Contracts have been terminated, Trustee, upon
request by Beneficiary, will provide a release of the Property from the lien of this Deed of Trust
and termination statements for filed financing statements, if any, to Grantor. Grantor shall be
responsible for the recordation of such release and the payment of any recording and filing costs.
Upon the recording of such release and the filing of such termination statements, the absolute
assignments set forth in Section 2.2 shall automatically terminate and become null and
void. Partial releases of the Property from the lien of this Deed of Trust shall be made on the
terms and subject to the conditions of the Loan Agreement. No partial release shall be sought,
requested or required if any Event of Default has occurred which has not been cured.

Article III

Representations and Warranties

     Grantor makes the following representations and warranties to Beneficiary:

     Section 3.1 Title to Real Property.

     Grantor (a) owns fee simple title to the Real Property, (b) owns all of the beneficial and
equitable interest in and to the Real Property, and (c) is lawfully seized and possessed of the
Real Property. Grantor has the right and authority to convey the Real Property and does hereby
convey the Real Property. The Real Property is subject to no Encumbrances other than the Permitted
Encumbrances.

     Section 3.2 Title to Other Property.

     Grantor has good title to the Personalty, and the Personalty is not subject to any Encumbrance
other than the Permitted Encumbrances. None of the Leases, Rents, Design and Development
Documents, Contracts of Sale or Refinancing Commitments are subject to any Encumbrance other than
the Permitted Encumbrances.

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     Section 3.3 Property Assessments.

     The Real Property is assessed for purposes of Property Assessments as a separate and distinct
parcel from any other property, such that the Real Property shall never become subject to the Lien
of any Property Assessments levied or assessed against any property other than the Real Property.

     Section 3.4 Independence of the Real Property.

     To Grantor’s knowledge, no buildings or other improvements on property not covered by this
Deed of Trust rely on the Real Property or any interest therein to fulfill any requirement of any
Governmental Authority for the existence of such property, building or improvements; and none of
the Real Property relies, or will rely, on any property not covered by this Deed of Trust or any
interest therein to fulfill any requirement of any Governmental Authority. To Grantor’s knowledge,
the Real Property has been properly subdivided from all other property in accordance with the
requirements of any applicable Governmental Authorities.

     Section 3.5 Existing Improvements.

     The existing Improvements, if any, were constructed, and are being used and maintained, in
accordance with all applicable Laws, including zoning Laws.

     Section 3.6 Leases and Tenants.

     The Leases are valid and are in full force and effect, and Grantor is not in default under any
of the terms thereof. Except as expressly permitted in the Loan Agreement, Grantor has not
accepted any Rents in advance of the time the same became due under the Leases and has not
forgiven, compromised or discounted any of the Rents. Grantor has title to and the right to assign
the Leases and Rents to Beneficiary, and no other assignment of the Leases or Rents has been
granted. To the best of Grantor’s knowledge and belief, no tenant or tenants occupying,
individually or in the aggregate, more than five percent (5%) of the net rentable area of the
Improvements are in default under their Lease(s) or are the subject of any bankruptcy, insolvency
or similar proceeding.

Article IV

Affirmative Covenants

     Section 4.1 Obligations.

     Grantor agrees to promptly pay and perform all of the Obligations, time being of the essence
in each case.

     Section 4.2 Property Assessments; Documentary Taxes.

     Grantor (a) will promptly pay in full and discharge all Property Assessments, and (b) will
furnish to Beneficiary, upon demand, the receipted bills for such Property Assessments prior to the
day upon which the same shall become delinquent. Property Assessments shall be considered
delinquent as of the first day any interest or penalty commences to accrue thereon.

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Grantor will promptly pay all stamp, documentary, recordation, transfer and intangible taxes
and all other taxes that may from time to time be required to be paid with respect to the Loan, the
Note, this Deed of Trust or any of the other Loan Documents.

     Section 4.3 Permitted Contests.

     Grantor shall not be required to pay any of the Property Assessments, or to comply with any
Law, so long as Grantor shall in good faith, and at its cost and expense, contest the amount or
validity thereof, or take other appropriate action with respect thereto, in good faith and in an
appropriate manner or by appropriate proceedings; provided that (a) such proceedings operate to
prevent the collection of, or other realization upon, such Property Assessments or enforcement of
the Law so contested, (b) there will be no sale, forfeiture or loss of the Property during the
contest, (c) neither Beneficiary nor Trustee is subjected to any Claim as a result of such contest,
and (d) Grantor provides assurances satisfactory to Beneficiary (including the establishment of an
appropriate reserve account with Beneficiary) of its ability to pay such Property Assessments or
comply with such Law in the event Grantor is unsuccessful in its contest. Each such contest shall
be promptly prosecuted to final conclusion or settlement, and Grantor shall indemnify and save
Beneficiary and Trustee harmless against all Claims in connection therewith. Promptly after the
settlement or conclusion of such contest or action, Grantor shall comply with such Law and/or pay
and discharge the amounts which shall be levied, assessed or imposed or determined to be payable,
together with all penalties, fines, interests, costs and expenses in connection therewith.

     Section 4.4 Compliance with Laws.

     Grantor will comply with and not violate, and cause to be complied with and not violated, all
present and future Laws applicable to the Property and its use and operation.

     Section 4.5 Maintenance and Repair of the Property.

     Grantor, at Grantor’s sole expense, will (a) keep and maintain Improvements and Accessories in
good condition, working order and repair, and (b) make all necessary or appropriate repairs and
Additions to Improvements and Accessories, so that each part of the Improvements and all of the
Accessories shall at all times be in good condition and fit and proper for the respective purposes
for which they were originally intended, erected, or installed.

     Section 4.6 Additions to Security.

     All right, title and interest of Grantor in and to all Improvements and Additions hereafter
constructed or placed on the Property and in and to any Accessories hereafter acquired shall,
without any further deed of trust, conveyance, assignment or other act by Grantor, become subject
to the Lien of this Deed of Trust as fully and completely, and with the same effect, as though now
owned by Grantor and specifically described in the granting clauses hereof. Grantor agrees,
however, to execute and deliver to Trustee and/or Beneficiary such further documents as may be
required by the terms of the Loan Agreement and the other Loan Documents.

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     Section 4.7 Subrogation; Vendor’s/Purchase Money Lien.

     To the extent permitted by Law, Beneficiary shall be subrogated, notwithstanding its release
of record, to any Lien now or hereafter existing on the Property to the extent that such Lien is
paid or discharged by Beneficiary whether or not from the proceeds of the Loan. This Section shall
not be deemed or construed, however, to obligate Beneficiary to pay or discharge any Lien. If all
or any portion of the proceeds of the loan evidenced by the Note or of any other secured
indebtedness has been advanced for the purpose of paying the purchase price for all or a part of
the Property, no vendor’s or purchase money lien is waived; and Beneficiary shall have, and is
hereby granted, a vendor’s or purchase money lien on the Property as cumulative additional security
for the secured indebtedness. Beneficiary may foreclose under this Deed of Trust or under the
vendor’s or purchase money lien without waiving the other or may foreclose under both.

     Section 4.8 Leases.

          (a) Except as expressly permitted in the Loan Agreement, Grantor shall not enter into any
Material Lease (as defined in the Loan Agreement) with respect to all or any portion of the
Property without the prior written consent of Beneficiary.

          (b) Neither Trustee nor Beneficiary shall be obligated to perform or discharge any obligation
of Grantor under any Lease. The assignment of Leases provided for in this Deed of Trust in no
manner places on Beneficiary or Trustee any responsibility for (i) the control, care, management or
repair of the Property, (ii) the carrying out of any of the terms and conditions of the Leases,
(iii) any waste committed on the Property, or (iv) any dangerous or defective condition on the
Property (whether known or unknown).

          (c) No approval of any Lease by Beneficiary shall be for any purpose other than to protect
Beneficiary’s security and to preserve Beneficiary’s rights under the Loan Documents, and no such
approval shall result in a waiver of a Default or Event of Default.

Article V

Negative Covenants

     Section 5.1 Encumbrances.

     Grantor will not permit any of the Property to become subject to any Encumbrance other than
the Permitted Encumbrances. Within thirty (30) days after the filing of any mechanic’s lien or
other Lien or Encumbrance against the Property, Grantor will promptly discharge the same by payment
or filing a bond or otherwise as permitted by Law. So long as Beneficiary’s security has been
protected by the filing of a bond or otherwise in a manner satisfactory to Beneficiary in its sole
and absolute discretion, Grantor shall have the right to contest in good faith any Claim, Lien or
Encumbrance, provided that Grantor does so diligently and without prejudice to Beneficiary or delay
in completing construction of the Improvements. Grantor shall give Beneficiary Notice of any
default under any Lien and Notice of any foreclosure or threat of foreclosure with respect to any
of the Property.

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     Section 5.2 Transfer of the Property.

          (a) Grantor will not Transfer, or contract to Transfer, all or any part of the Property or any
legal or beneficial interest therein (except for certain Transfers of the Accessories expressly
permitted in this Deed of Trust). The Transfer of more than 10% of the membership interests in
Grantor (whether in one or more transactions during the term of the Loans) shall be deemed to be a
prohibited Transfer of the Property.

          (b) Provided that no Event of Default is then continuing hereunder or under any of the other
Loan Documents, the following Transfers shall be permitted under this Section 5.2 without the prior
written consent of Beneficiary:

          (1) a Transfer of corporate stock, partnership interests (other than the
general partner’s direct interests in Grantor) and/or membership interests (other
than the managing member’s direct interests in Grantor) in Grantor, or in any
partner or member of Grantor, or any direct or indirect legal or beneficial owner
of Grantor, so long as following such Transfer (whether in one or a series of
transactions) or, with respect to any creation or issuance of new limited
partnership interests or membership interests, not more than 49% of the beneficial
economic interest in Grantor (whether directly or indirectly) has been transferred
in the aggregate, and there is no Change of Control (defined below) and the
persons responsible for the day to day management of the Property and Grantor
remain unchanged following such Transfer;

          (2) any involuntary Transfer caused by the death of any partner, shareholder,
joint venturer, member or beneficial owner of a trust, or any direct or indirect
legal or beneficial owner of Grantor, so long as Grantor is promptly
reconstituted, if required, following such death and so long as there is no Change
of Control (defined below) and those persons responsible for the day to day
management of the Property and Grantor remain unchanged as a result of such death
(other than any decedent) or any replacement management or controlling parties are
approved by Beneficiary;

          (3) a Transfer comprised of gifts for estate planning purposes of any
individual’s interests in Grantor, or in any of Grantor’s partners, members,
shareholders, beneficial owners of a trust or joint venturers, or any direct or
indirect legal or beneficial owner of Grantor, to the spouse, any lineal descendant,
or the spouse of any lineal descendant of such individual, or to a trust for the
benefit of any one or more of such individual, spouse, any lineal descendant, or the
spouse of any lineal descendant of such individual, so long as Grantor is
reconstituted promptly, if required, following such gift and so long as there is no
Change of Control and those persons responsible for the day to day management of the
Property and Grantor remain unchanged following such gift.

          (4) Provided that no Event of Default is then continuing hereunder or under any
of the other Loan Documents, or, if an Event of Default exists and such transfer
would result in the cure of such Event of Default, the

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transfer of any tenant in common interest in the Property between the entities
comprising Borrower (a “TIC Agreement Transfer”) shall be permitted by Lender,
provided that (1) the financial condition of the transferee has not materially
adversely changed since the date such transferee initially acquired tenant in common
interests in the Property, (2) the TIC Agreement Transfer does not result in the
violation of any applicable securities laws, (3) following the TIC Agreement
Transfer no more than forty-nine percent (49%) of the undivided ownership interests
in the Property will be held by any Person and its Affiliates who together owned
less than a forty-nine percent (49%) undivided ownership interest in the Property
prior to the TIC Agreement Transfer, and (4) Lender shall have received and approved
all documents evidencing or relating to the TIC Agreement Transfer (including
without limitation, conveyance instruments, amendments to the Tenancy in Common
Agreement and the Loan Documents to reflect changes in ownership percentages, and
title insurance policy endorsements) as well as any other documents, instruments,
opinions, endorsements or agreements reasonably required by Lender, and Lender shall
have been paid all costs and expenses, including attorneys’ fees, incurred in
connection with the TIC Agreement Transfer.

For purposes of this Section 5.2(b), “Change of Control” shall mean a change in the identity of the
individual or entities or group of individuals or entities who have the right, by virtue of any
partnership agreement, articles of incorporation, by-laws, articles of organization, operating
agreement or any other agreement, with or without taking any formative action, to cause Grantor to
take some action or to prevent, restrict or impede Grantor from taking some action which, in either
case, Grantor could take or could refrain from taking were it not for the rights of such
individuals. With respect to any Transfer of less than an undivided forty-nine percent (49%)
interest in the Property that is subject to the prior written approval of Beneficiary, Beneficiary
shall approve or disapprove any such matter within ten (10) Business Days of Beneficiary’s receipt
of a written notice from Grantor requesting Beneficiary’s approval, provided such notice includes
all information necessary to make such decision, and further provided that such written notice from
Grantor shall conspicuously state, in large bold type, that “PURSUANT TO SECTION 5.2 OF THE DEED OF
TRUST, A RESPONSE IS REQUIRED WITHIN TEN (10) BUSINESS DAYS OF BENEFICIARY’S RECEIPT OF THIS
WRITTEN NOTICE”. If Beneficiary fails to disapprove any such matter within such period, Grantor
shall provide a second written notice requesting approval, which written notice shall conspicuously
state, in large bold type, that “PURSUANT TO SECTION 5.2 OF THE DEED OF TRUST, THE MATTER DESCRIBED
HEREIN SHALL BE DEEMED APPROVED IF BENEFICIARY DOES NOT RESPOND TO THE CONTRARY WITHIN FIVE (5)
BUSINESS DAYS OF BENEFICIARY’S RECEIPT OF THIS WRITTEN NOTICE”. Thereafter, if Beneficiary does not
disapprove such matter within said five (5) Business Day period such matter shall be deemed
approved.

     Section 5.3 Removal, Demolition or Alteration of Accessories and Improvements.

     Except to the extent permitted by the following sentence, no Improvements or Accessories shall
be removed, demolished or materially altered without the prior written consent of Beneficiary.
Grantor may remove and dispose of, free from the Lien of this Deed of Trust,

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such Accessories as from time to time become worn out or obsolete, provided that, either (a)
Grantor reasonably determines that such Accessories are not necessary for the proper ownership or
operation of the Property, (b) at the time of, or prior to, such removal, any such Accessories are
replaced with other Accessories which are free from Liens other than Permitted Encumbrances and
have a value at least equal to that of the replaced Accessories (and by such removal and
replacement Grantor shall be deemed to have subjected such replacement Accessories to the Lien of
this Deed of Trust), or (c) so long as a prepayment may be made without the imposition of any
premium pursuant to the Note, such Accessories are sold at fair market value for cash and the net
cash proceeds received from such disposition are paid over promptly to Beneficiary to be applied to
the prepayment of the principal of the Loan.

     Section 5.4 Additional Improvements.

     Grantor will not construct any Improvements other than those presently on the Land and those
described in the Loan Agreement without the prior written consent of Beneficiary. Grantor will
complete and pay for, within a reasonable time, any Improvements which Grantor is permitted to
construct on the Land. Grantor will construct and erect any permitted Improvements (a) strictly in
accordance with all applicable Laws and any private restrictive covenants, (b) entirely on lots or
parcels of the Land, (c) so as not to encroach upon any easement or right-of-way or upon the land
of others, and (d) wholly within any building restriction and setback lines applicable to the Land.

     Section 5.5 Restrictive Covenants, Zoning, etc.

     Without the prior written consent of Beneficiary, Grantor will not initiate, join in, or
consent to any change in, any restrictive covenant, easement, zoning ordinance, or other public or
private restrictions limiting or defining the uses which may be made of the Property. Grantor (a)
will promptly perform and observe, and cause to be performed and observed, all of the terms and
conditions of all agreements affecting the Property, and (b) will do or cause to be done all things
necessary to preserve intact and unimpaired any and all easements, appurtenances and other
interests and rights in favor of, or constituting any portion of, the Property.

Article VI

Events of Default

     The occurrence or happening, from time to time, of any one or more of the following shall
constitute an Event of Default under this Deed of Trust:

     Section 6.1 Payment Obligations.

     Grantor fails to pay any of the Obligations when due, whether on the scheduled due date or
upon acceleration, maturity or otherwise.

     Section 6.2 Transfers.

          (a) Grantor Transfers, or contracts to Transfer, all or any part of the Property or any legal
or beneficial interest therein (except for Transfers of the Accessories expressly permitted under
this Deed of Trust). The Transfer of more than 10% of the membership interests

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in Grantor (whether in one or more transactions during the term of the Loans) shall be deemed
to be a prohibited Transfer of the Property.

          (b) Provided that no Event of Default is then continuing hereunder or under any of the other
Loan Documents, the Transfers set forth in Section 5.2(b) shall be permitted under this Section
6.2(b) without the prior written consent of Beneficiary.

     Section 6.3 Other Obligations.

     Grantor fails to promptly perform or comply with any of the Obligations set forth in this Deed
of Trust (other than those expressly described in other Sections of this Article VI), and such
failure continues uncured for a period of thirty (30) days after Notice from Beneficiary to
Grantor; provided, however, that if such default is susceptible of cure but such cure cannot be
accomplished with reasonable diligence within said period of time, and if Grantor commences to cure
such default promptly after receipt of notice thereof from Beneficiary, and thereafter prosecutes
the curing of such default with reasonable diligence, such period of time shall be extended for
such period of time as may be necessary to cure such default with reasonable diligence, but not to
exceed an additional sixty (60) days.

     Section 6.4 Event of Default Under Other Loan Documents.

     An Event of Default (as defined therein) occurs under the Note or the Loan Agreement, or
Grantor or Guarantor fails to promptly pay, perform, observe or comply with any obligation or
agreement contained in any of the other Loan Documents (within any applicable grace or cure
period).

     Section 6.5 Default Under Other Lien Documents.

     A default by Grantor occurs under any other mortgage, deed of trust or security agreement
covering the Property, including any Permitted Encumbrances.

     Section 6.6 Execution; Attachment.

     Any execution or attachment is levied against any of the Property, and such execution or
attachment is not set aside, discharged or stayed within sixty (60) days after the same is levied.

Article VII

Rights and Remedies

     Upon the happening of and during the continuance of any Event of Default, Beneficiary shall
have the right, in addition to any other rights or remedies available to Beneficiary under any of
the Loan Documents or applicable Law, to exercise any one or more of the following rights, powers
or remedies:

     Section 7.1 Acceleration.

     Beneficiary may accelerate all Obligations under the Loan Documents (except as provided below)
whereupon such Obligations shall become immediately due and payable,

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without notice of default, notice of acceleration or intention to accelerate, presentment or
demand for payment, protest, notice of protest, notice of nonpayment or dishonor, or notices or
demands of any kind or character (all of which are hereby waived by Grantor); provided that the
foregoing provisions of this Section 7.1 shall not be applicable to the Swap Contracts, and any
acceleration of the obligations thereunder or exercise of other remedies thereunder shall be
governed by the terms of the Swap Contracts.

     Section 7.2 Foreclosure.

     Trustee is authorized and empowered and it shall be his special duty at the request of
Beneficiary to sell the Property or any part thereof situated in the State of Texas, at the
courthouse of any county (whether or not the counties in which the Property is located are
contiguous, if the Property is located in more than one county) in the State of Texas in which any
part of the Property is situated, at public venue to the highest bidder for cash between the hours
of ten o’clock a.m. and four o’clock p.m. on the first Tuesday in any month or at such other place,
time and date as provided by the statutes of the State of Texas then in force governing sales of
real estate under powers of sale conferred by deed of trust, after having given notice of such sale
in accordance with such statutes. Any sale made by Trustee hereunder may be as an entirety or in
such parcels as Beneficiary may request. To the extent permitted by applicable Law, any sale may
be adjourned by announcement at the time and place appointed for such sale without further notice
except as may be required by Law. The sale by Trustee of less than the whole of the Property shall
not exhaust the power of sale herein granted, and Trustee is specifically empowered to make
successive sale or sales under such power until the whole of the Property shall be sold; and, if
the proceeds of such sale of less than the whole of the Property shall be less than the aggregate
of the Obligations and the expense of executing this trust as provided herein, this Deed of Trust
and the lien hereof shall remain in full force and effect as to the unsold portion of the Property
just as though no sale had been made; provided, however, that Grantor shall never have any right to
require the sale of less than the whole of the Property but Beneficiary shall have the right, at
its sole election, to request Trustee to sell less than the whole of the Property. Trustee may,
after any request or direction by Beneficiary, and as agent for the Beneficiary, sell not only the
real property but also the Personalty and other interests which are a part of the Property, or any
part thereof, as a unit and as a part of a single sale, or may sell any part of the Property
separately from the remainder of the Property. It shall not be necessary for Trustee to have taken
possession of any part of the Property or to have present or to exhibit at any sale any of the
Personalty. After each sale, Trustee shall make to the purchaser or purchasers at such sale good
and sufficient conveyances in the name of Grantor, conveying the property so sold to the purchaser
or purchasers with general warranty of title of Grantor, subject to the Permitted Encumbrances (and
to such leases and other matters, if any, as Trustee may elect upon request of Beneficiary), and
shall receive the proceeds of said sale or sales and apply the same as herein provided. Payment of
the purchase price to the Trustee shall satisfy the obligation of purchaser at such sale therefor,
and such purchaser shall not be responsible for the application thereof. The power of sale granted
herein shall not be exhausted by any sale held hereunder by Trustee or his substitute or successor,
and such power of sale may be exercised from time to time and as many times as Beneficiary may deem
necessary until all of the Property has been duly sold and all Obligations has been fully paid. In
the event any sale hereunder is not completed or is defective in the opinion of Holder, such sale
shall not exhaust the power of sale hereunder and Beneficiary shall have the right to cause a
subsequent sale or sales to be made

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hereunder. Any and all statements of fact or other recitals made in any deed or deeds or
other conveyances given by Trustee or any successor or substitute appointed hereunder as to
nonpayment of the Obligations or as to the occurrence of any default, or as to Beneficiary’s having
declared all of said indebtedness to be due and payable, or as to the request to sell, or as to
notice of time, place and terms of sale and the properties to be sold having been duly given, or as
to the refusal, failure or inability to act of Trustee or any substitute or successor trustee, or
as to the appointment of any substitute or successor trustee, or as to any other act or thing
having been duly done by Holder or by such Trustee, substitute or successor, shall be taken as
prima facie evidence of the truth of the facts so stated and recited. The Trustee or his successor
or substitute may appoint or delegate any one or more persons as agent to perform any act or acts
necessary or incident to any sale held by Trustee, including the posting of notices and the conduct
of sale, but in the name and on behalf of Trustee, his successor or substitute. If Trustee or his
successor or substitute shall have given notice of sale hereunder, any successor or substitute
Trustee thereafter appointed may complete the sale and the conveyance of the property pursuant
thereto as if such notice had been given by the successor or substitute Trustee conducting the
sale.

     Section 7.3 Judicial Action.

     Beneficiary shall have the right from time to time to sue Grantor for any sums (whether
interest, damages for failure to pay principal or any installments thereof, taxes, or any other
sums required to be paid under the terms of this Deed of Trust, as the same become due), without
regard to whether or not any of the other Obligations shall be due, and without prejudice to the
right of Beneficiary thereafter to enforce any appropriate remedy against Grantor, including an
action of foreclosure or an action for specific performance, for a Default or Event of Default
existing at the time such earlier action was commenced.

     Section 7.4 Collection of Rents.

     Upon the occurrence of an Event of Default, the license granted to Grantor to collect the
Rents shall be automatically and immediately revoked, without further notice to or demand upon
Grantor. Beneficiary may, but shall not be obligated to, perform any or all obligations of the
landlord under any or all of the Leases, and Beneficiary may, but shall not be obligated to,
exercise and enforce any or all of Grantor’s rights under the Leases. Without limiting the
generality of the foregoing, Beneficiary may notify the tenants under the Leases that all Rents are
to be paid to Beneficiary, and following such notice all Rents shall be paid directly to
Beneficiary and not to Grantor or any other Person other than as directed by Beneficiary, it being
understood that a demand by Beneficiary on any tenant under the Leases for the payment of Rent
shall be sufficient to warrant payment by such tenant of Rent to Beneficiary without the necessity
of further consent by Grantor. Grantor hereby irrevocably authorizes and directs the tenants under
the Leases to pay all Rents to Beneficiary instead of to Grantor, upon receipt of written notice
from Beneficiary, without the necessity of any inquiry of Grantor and without the necessity of
determining the existence or non-existence of an Event of Default. Grantor hereby appoints
Beneficiary as Grantor’s attorney-in-fact with full power of substitution, which appointment shall
take effect upon the occurrence of an Event of Default and is coupled with an interest and is
irrevocable prior to the full and final payment and performance of the Obligations, in Grantor’s
name or in Beneficiary’s name: (a) to endorse all checks and other instruments

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received in payment of Rents and to deposit the same in any account selected by Beneficiary;
(b) to give receipts and releases in relation thereto; (c) to institute, prosecute and/or settle
actions for the recovery of Rents; (d) to modify the terms of any Leases including terms relating
to the Rents payable thereunder; (e) to cancel any Leases; (f) to enter into new Leases; and (g) to
do all other acts and things with respect to the Leases and Rents which Beneficiary may deem
necessary or desirable to protect the security for the Obligations. Any Rents received shall be
applied first to pay all Expenses and next in reduction of the other Obligations. Grantor shall
pay, on demand, to Beneficiary, the amount of any deficiency between (i) the Rents received by
Beneficiary, and (ii) all Expenses incurred together with interest thereon as provided in the Loan
Agreement and the other Loan Documents.

     Section 7.5 Taking Possession or Control of the Property.

     As an absolute matter of right without regard to the adequacy of the security, and to the
extent permitted by Law without notice to Grantor, Beneficiary shall be entitled, upon ex parte
application to a court of competent jurisdiction, to the immediate appointment of a receiver for
all or any part of the Property and the Rents, whether such receivership may be incidental to a
proposed sale of the Property or otherwise, and Grantor hereby consents to the appointment of such
a receiver and agrees that such receiver shall have all of the rights and powers granted to
Beneficiary pursuant to Section 7.4. In addition, to the extent permitted by Law, and with
or without the appointment of a receiver, or an application therefor, Beneficiary may (a) enter
upon, and take possession of (and Grantor shall surrender actual possession of), the Property or
any part thereof, without notice to Grantor and without bringing any legal action or proceeding,
or, if necessary by force, legal proceedings, ejectment or otherwise, and (b) remove and exclude
Grantor and its agents and employees therefrom.

     Section 7.6 Management of the Property.

     Upon obtaining possession of the Property or upon the appointment of a receiver as described
in Section 7.5, Beneficiary, Trustee or the receiver, as the case may be, may, at its sole
option, (a) make all necessary or proper repairs and Additions to or upon the Property, (b)
operate, maintain, control, make secure and preserve the Property, and (c) complete the
construction of any unfinished Improvements on the Property and, in connection therewith, continue
any and all outstanding contracts for the erection and completion of such Improvements and make and
enter into any further contracts which may be necessary, either in their or its own name or in the
name of Grantor (the costs of completing such Improvements shall be Expenses secured by this Deed
of Trust and shall accrue interest as provided in the Loan Agreement and the other Loan Documents).
Beneficiary, Trustee or such receiver shall be under no liability for, or by reason of, any such
taking of possession, entry, holding, removal, maintaining, operation or management, except for
gross negligence or willful misconduct. The exercise of the remedies provided in this Section
shall not cure or waive any Event of Default, and the enforcement of such remedies, once commenced,
shall continue for so long as Beneficiary shall elect, notwithstanding the fact that the exercise
of such remedies may have, for a time, cured the original Event of Default.

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     Section 7.7 Uniform Commercial Code.

     Beneficiary may proceed under the Uniform Commercial Code as to all or any part of the
Personalty, and in conjunction therewith may exercise all of the rights, remedies and powers of a
secured creditor under the Uniform Commercial Code. Upon the occurrence of any Event of Default,
Grantor shall assemble all of the Accessories and make the same available within the Improvements.
Any notification required by the Uniform Commercial Code shall be deemed reasonably and properly
given if sent in accordance with the Notice provisions of this Deed of Trust at least ten (10) days
before any sale or other disposition of the Personalty. Disposition of the Personalty shall be
deemed commercially reasonable if made pursuant to a public sale advertised at least twice in a
newspaper of general circulation in the community where the Property is located. It shall be
deemed commercially reasonable for the Trustee to dispose of the Personalty without giving any
warranties as to the Personalty and specifically disclaiming all disposition warranties.
Alternatively, Beneficiary may choose to dispose of some or all of the Property, in any combination
consisting of both Personalty and Real Property, in one sale to be held in accordance with the Law
and procedures applicable to real property, as permitted by Article 9 of the Uniform Commercial
Code. Grantor agrees that such a sale of Personalty together with Real Property constitutes a
commercially reasonable sale of the Personalty.

     Section 7.8 Application of Proceeds.

     Unless otherwise provided by applicable Law, all proceeds from the sale of the Property or any
part thereof pursuant to the rights and remedies set forth in this Article VII and any
other proceeds received by Beneficiary from the exercise of any of its other rights and remedies
hereunder or under the other Loan Documents shall be applied first to pay all Expenses and next in
reduction of the other Obligations, in such manner and order as Beneficiary may elect.

     Section 7.9 Other Remedies.

     Beneficiary shall have the right from time to time to protect, exercise and enforce any legal
or equitable remedy against Grantor provided under the Loan Documents or by applicable Laws.

Article VIII

Trustee

     Section 8.1 Liability of Trustee.

     Trustee shall have no liability or responsibility for, and make no warranties in connection
with, the validity or enforceability of any of the Loan Documents or the description, value or
status of title to the Property. Trustee shall be protected in acting upon any notice, request,
consent, demand, statement, note or other paper or document believed by Trustee to be genuine and
to have been signed by the party or parties purporting to sign the same. Trustee shall not be
liable for any error of judgment, nor for any act done or step taken or omitted, nor for any
mistakes of law or fact, nor for anything which Trustee may do or refrain from doing in good faith,
nor generally shall Trustee have any accountability hereunder. WITHOUT LIMITATION, THE FOREGOING
LIMITATIONS OF LIABILITY SHALL APPLY TO TRUSTEE WITH RESPECT TO MATTERS WHICH IN WHOLE OR IN PART
ARE

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CAUSED BY OR ARISE OUT OF, OR ARE CLAIMED TO BE CAUSED BY OR ARISE OUT OF, THE NEGLIGENCE
(WHETHER SOLE, COMPARATIVE OR CONTRIBUTORY) OR STRICT LIABILITY OF TRUSTEE. HOWEVER, SUCH
INDEMNITIES SHALL NOT APPLY TO TRUSTEE TO THE EXTENT THAT THE SUBJECT OF THE INDEMNIFICATION IS
CAUSED BY OR ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TRUSTEE. The powers and
duties of Trustee hereunder may be exercised through such attorneys, agents or servants as Trustee
may appoint, and Trustee shall have no liability or responsibility for any act, failure to act,
negligence or willful conduct of such attorney, agent or servant, so long as the selection was made
with reasonable care. In addition, Trustee may consult with legal counsel selected by Trustee, and
Trustee shall have no liability or responsibility by reason of any act or failure to act in
accordance with the opinions of such counsel. Trustee may act hereunder and may sell or otherwise
dispose of the Property or any part thereof as herein provided, although Trustee has been, may now
be or may hereafter be, an attorney, officer, agent or employee of Beneficiary, in respect of any
matter or business whatsoever. Trustee, however, shall have no obligation to sell all or any part
of the Property following an Event of Default or to take any other action authorized to be taken by
Trustee hereunder except upon the demand of Beneficiary.

     Section 8.2 Indemnification of Trustee.

     Grantor agrees to indemnify Trustee and to hold Trustee harmless from and against any and all
Claims and Expenses directly or indirectly arising out of or resulting from any transaction, act,
omission, event or circumstance in any way connected with the Property or the Loan, including but
not limited to any Claim arising out of or resulting from any assertion or allegation that Trustee
is liable for any act or omission of Grantor or any other Person in connection with the ownership,
development, financing, operation or sale of the Property. WITHOUT LIMITATION, THE FOREGOING
INDEMNITIES SHALL APPLY TO TRUSTEE WITH RESPECT TO MATTERS WHICH IN WHOLE OR IN PART ARE CAUSED BY
OR ARISE OUT OF, OR ARE CLAIMED TO BE CAUSED BY OR ARISE OUT OF, THE NEGLIGENCE (WHETHER SOLE,
COMPARATIVE OR CONTRIBUTORY) OR STRICT LIABILITY OF TRUSTEE. HOWEVER, SUCH INDEMNITIES SHALL NOT
APPLY TO TRUSTEE TO THE EXTENT THAT THE SUBJECT OF THE INDEMNIFICATION IS CAUSED BY OR ARISES OUT
OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TRUSTEE. The agreements and indemnifications
contained in this Section shall apply to Claims arising both before and after the repayment of the
Loan and shall survive the repayment of the Loan, any foreclosure or deed, conveyance or assignment
in lieu thereof and any other action by Trustee to enforce the rights and remedies of Beneficiary
or Trustee hereunder or under the other Loan Documents.

-21-

 

     Section 8.3 Substitution of Trustee; Multiple Trustees.

     Beneficiary shall have, and is hereby granted with warranty of further assurances, the irrevocable
power to appoint a new or replacement or substitute Trustee. Such power may be exercised at any
time without notice, without cause and without specifying any reason therefor, by filing for record
in the office where this Deed of Trust is recorded a Substitution of Trustee. The power of
appointment of a successor Trustee may be exercised as often as and whenever Beneficiary may
choose, and the exercise of the power of appointment, no matter how often, shall not be an
exhaustion thereof. Upon the recordation of such Substitution of Trustee, the Trustee so appointed
shall thereupon, without any further act or deed of conveyance, become fully vested with
identically the same title and estate in and to the Property and with all the rights, powers,
trusts and duties of its predecessor in the trust hereunder with like effect as if originally named
as Trustee hereunder. Whenever in this Deed of Trust reference is made to Trustee, it shall be
construed to mean each Person appointed as Trustee for the time being, whether original or
successor in trust. All title, estate, rights, powers, trusts and duties granted to Trustee shall
be in each Person appointed as Trustee so that any action hereunder by any Person appointed as
Trustee shall for all purposes be deemed to be, and as effective as, the action of all Trustees.

Article IX

Miscellaneous

     Section 9.1 Rights, Powers and Remedies Cumulative.

     The Deed of Trust is a deed of trust and mortgage, and each right, power and remedy of
Beneficiary or Trustee as provided for in this Deed of Trust, or in any of the other Loan Documents
or now or hereafter existing by Law, shall be cumulative and concurrent and shall be in addition to
every other right, power or remedy provided for in this Deed of Trust, or in any of the other Loan
Documents or now or hereafter existing by Law, and the exercise or beginning of the exercise by
Beneficiary or Trustee of any one or more of such rights, powers or remedies shall not preclude the
simultaneous or later exercise by Beneficiary or Trustee of any or all such other rights, powers or
remedies. In the event a foreclosure hereunder shall be commenced by Trustee, Beneficiary may at
any time before the sale of the Property direct Trustee to abandon the sale, and may then institute
suit for the collection of the Note and/or any other secured indebtedness, and for the foreclosure
of this Deed of Trust. It is agreed that if Beneficiary should institute a suit for the collection
of the Note or any other secured indebtedness and for the foreclosure of this Deed of Trust,
Beneficiary may at any time before the entry of a final judgment in said suit dismiss the same, and
require Trustee, to sell the Property in accordance with the provisions of this Deed of Trust.

     Section 9.2 No Waiver by Beneficiary or Trustee.

     No course of dealing or conduct by or among Beneficiary, Trustee and Grantor shall be
effective to amend, modify or change any provisions of this Deed of Trust or the other Loan
Documents. No failure or delay by Beneficiary or Trustee to insist upon the strict performance of
any term, covenant or agreement of this Deed of Trust or of any of the other Loan Documents,

-22-

 

or to exercise any right, power or remedy consequent upon a breach thereof, shall constitute a
waiver of any such term, covenant or agreement or of any such breach, or preclude Beneficiary or
Trustee from exercising any such right, power or remedy at any later time or times. By accepting
payment after the due date of any of the Obligations, neither Beneficiary nor Trustee shall be
deemed to waive the right either to require prompt payment when due of all other Obligations, or to
declare an Event of Default for failure to make prompt payment of any such other Obligations.
Neither Grantor nor any other Person now or hereafter obligated for the payment of the whole or any
part of the Obligations shall be relieved of such liability by reason of (a) the failure of
Beneficiary to comply with any request of Grantor or of any other Person to take action to
foreclose this Deed of Trust or otherwise enforce any of the provisions of this Deed of Trust, or
(b) any agreement or stipulation between any subsequent owner or owners of the Property and
Beneficiary, or (c) Beneficiary’s extending the time of payment or modifying the terms of this Deed
of Trust or any of the other Loan Documents without first having obtained the consent of Grantor or
such other Person. Regardless of consideration, and without the necessity for any notice to or
consent by the holder of any subordinate Lien on the Property, Beneficiary may release any Person
at any time liable for any of the Obligations or any part of the security for the Obligations and
may extend the time of payment or otherwise modify the terms of this Deed of Trust or any of the
other Loan Documents without in any way impairing or affecting the Lien of this Deed of Trust or
the priority of this Deed of Trust over any subordinate Lien. The holder of any subordinate Lien
shall have no right to terminate any Lease regardless of whether or not such Lease is subordinate
to this Deed of Trust. Beneficiary may resort to the security or collateral described in this Deed
of Trust or any of the other Loan Documents in such order and manner as Beneficiary may elect in
its sole discretion.

     Section 9.3 Waivers and Agreements Regarding Remedies.

     To the fullest extent Grantor may do so, under applicable law, Grantor hereby:

          (a) agrees that it will not at any time plead, claim or take advantage of any Laws now or
hereafter in force providing for any appraisement, valuation, stay, extension or redemption, and
waives and releases all rights of redemption, valuation, appraisement, stay of execution, extension
and notice of election to accelerate the Obligations;

          (b) waives all rights to a marshalling of the assets of Grantor, including the Property, or to
a sale in the inverse order of alienation in the event of a foreclosure of the Property, and agrees
not to assert any right under any Law pertaining to the marshalling of assets, the sale in inverse
order of alienation, the exemption of homestead, the administration of estates of decedents, or
other matters whatsoever to defeat, reduce or affect the right of Beneficiary under the terms of
this Deed of Trust to a sale of the Property without any prior or different resort for collection,
or the right of Beneficiary to the payment of the Obligations out of the proceeds of sale of the
Property in preference to every other claimant whatsoever;

          (c) waives any right to bring or utilize any defense, counterclaim or setoff, other than one
which denies the existence or sufficiency of the facts upon which any foreclosure action is
grounded. If any defense, counterclaim or setoff, other than one permitted by the preceding
clause, is timely raised in a foreclosure action, such defense, counterclaim or setoff shall be
dismissed. If such defense, counterclaim or setoff is based on a Claim which could be

-23-

 

tried in an action for money damages, such Claim may be brought in a separate action which
shall not thereafter be consolidated with the foreclosure action. The bringing of such separate
action for money damages shall not be deemed to afford any grounds for staying the foreclosure
action; and

          (d) waives and relinquishes any and all rights and remedies which Grantor may have or be able
to assert by reason of the provisions of any Laws pertaining to the rights and remedies of
sureties.

     Section 9.4 Successors and Assigns.

     All of the grants, covenants, terms, provisions and conditions of this Deed of Trust shall run
with the Land and shall apply to and bind the successors and assigns of Grantor (including any
permitted subsequent owner of the Property), and inure to the benefit of Beneficiary, its
successors and assigns and to the successors in trust of Trustee.

     Section 9.5 No Warranty by Beneficiary.

     By inspecting the Property or by accepting or approving anything required to be observed,
performed or fulfilled by Grantor or to be given to Beneficiary or Trustee pursuant to this Deed of
Trust or any of the other Loan Documents, Beneficiary or Trustee shall not be deemed to have
warranted or represented the condition, sufficiency, legality, effectiveness or legal effect of the
same, and such acceptance or approval shall not constitute any warranty or representation with
respect thereto by Beneficiary or Trustee.

     Section 9.6 Amendments.

     This Deed of Trust may not be modified or amended except by an agreement in writing, signed by
the party against whom enforcement of the change is sought.

     Section 9.7 Severability.

     In the event any one or more of the provisions of this Deed of Trust or any of the other Loan
Documents shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part
or in any other respect, or in the event any one or more of the provisions of the Loan Documents
operates or would prospectively operate to invalidate this Deed of Trust or any of the other Loan
Documents, then and in either of those events, at the option of Beneficiary, such provision or
provisions only shall be deemed null and void and shall not affect the validity of the remaining
obligations, and the remaining provisions of the Loan Documents shall remain operative and in full
force and effect and shall in no way be affected, prejudiced or disturbed thereby.

     Section 9.8 Notices.

     All Notices required or which any party desires to give hereunder or under any other Loan
Document shall be in writing and, unless otherwise specifically provided in such other Loan
Document, shall be deemed sufficiently given or furnished if delivered by personal delivery, by
nationally recognized overnight courier service or by certified United States mail,

-24-

 

postage prepaid, addressed to the party to whom directed at the applicable address specified
in the Preamble to this Deed of Trust (unless changed by similar notice in writing given by the
particular party whose address is to be changed) or by facsimile. Any Notice shall be deemed to
have been given either at the time of personal delivery or, in the case of courier or mail, as of
the date of first attempted delivery at the address and in the manner provided herein, or, in the
case of facsimile, upon receipt; provided that service of a Notice required by any applicable
statute shall be considered complete when the requirements of that statute are met.
Notwithstanding the foregoing, no notice of change of address shall be effective except upon actual
receipt. This Section shall not be construed in any way to affect or impair any waiver of notice
or demand provided in this Deed of Trust or in any other Loan Document or to require giving of
notice or demand to or upon any Person in any situation or for any reason.

     Section 9.9 Joint and Several Liability.

     If Grantor consists of two (2) or more Persons, the term “Grantor” shall also refer to all
Persons signing this Deed of Trust as Grantor, and to each of them, and all of them are jointly and
severally bound, obligated and liable hereunder. Trustee or Beneficiary may release, compromise,
modify or settle with any of Grantor, in whole or in part, without impairing, lessening or
affecting the obligations and liabilities of the others of Grantor hereunder or under the Note.
Any of the acts mentioned aforesaid may be done without the approval or consent of, or notice to,
any of Grantor. Section 12.29 of the Loan Agreement (the “Joint Borrower Provisions”) is
by this reference incorporated herein in its entirety.

     Section 9.10 Rules of Construction.

     The words “hereof,” “herein,” “hereunder,” “hereto,” and other words of similar import refer
to this Deed of Trust in its entirety. The terms “agree” and “agreements” mean and include
“covenant” and “covenants.” The words “include” and “including” shall be interpreted as if followed
by the words “without limitation.” The headings of this Deed of Trust are for convenience of
reference only and shall not be considered a part hereof and are not in any way intended to define,
limit or enlarge the terms hereof. All references (a) made in the neuter, masculine or feminine
gender shall be deemed to have been made in all such genders, (b) made in the singular or plural
number shall be deemed to have been made, respectively, in the plural or singular number as well,
(c) to the Loan Documents are to the same as extended, amended, restated, supplemented or otherwise
modified from time to time unless expressly indicated otherwise, (d) to the Land, Improvements,
Personalty, Real Property or Property shall mean all or any portion of each of the foregoing,
respectively, and (e) to Articles or Sections are to the respective Articles or Sections contained
in this Deed of Trust unless expressly indicated otherwise. Any term used or defined in the
Uniform Commercial Code of the State, as in effect from time to time, which is not defined in this
Deed of Trust shall have the meaning ascribed to that term in the Uniform Commercial Code of the
State. If a term is defined in Article 9 of the Uniform Commercial Code of the State differently
than in another Article of the Uniform Commercial Code of the State, the term shall have the
meaning specified in Article 9.

-25-

 

     Section 9.11 Governing Law.

     This Deed of Trust shall be construed, governed and enforced in accordance with the Laws in
effect from time to time in the State. It is the intent of Grantor and Beneficiary and all other
parties to the Loan Documents to conform to and contract in strict compliance with applicable usury
Law from time to time in effect. In no way, nor in any event or contingency (including but not
limited to prepayment, default, demand for payment, or acceleration of the maturity of any
obligation), shall the interest taken, reserved, contracted for, charged, chargeable, or received
under this Deed of Trust, or otherwise, exceed the maximum nonusurious amount permitted by
applicable Law (the “Maximum Amount”). If, from any possible construction of any document,
interest would otherwise be payable in excess of the Maximum Amount, any such construction shall be
subject to the provisions of this Section and shall ipso facto be automatically reformed and the
interest payable shall be automatically reduced to the Maximum Amount, without the necessity of
execution of any amendment or new document. Beneficiary shall ever receive anything of value which
is characterized as interest under applicable Law and which would apart from this provision be in
excess of the Maximum Amount, an amount equal to the amount which would have been excessive
interest shall, without penalty, be applied to the reduction of the principal amount owing on the
Obligations in the inverse order of its maturity and not to the payment of interest, or refunded to
Grantor or the other payor thereof if and to the extent such amount which would have been excessive
exceeds such unpaid principal. The right to accelerate maturity of the Note or any other
Obligations does not include the right to accelerate any interest which has not otherwise accrued
on the date of such acceleration, and does not intend to charge or receive any unearned interest in
the event of acceleration. All interest paid or agreed to be paid to shall, to the extent
permitted by applicable Law, be amortized, prorated, allocated and spread throughout the full
stated term (including any renewal or extension) of such indebtedness so that the amount of
interest on account of such indebtedness does not exceed the Maximum Amount. As used in this
Section, the term “applicable Law” shall mean the Laws of the State where the Property is
located or where the Obligations are is payable, or the federal Laws of the United States
applicable to this transaction, whichever Laws allow the greatest interest, as such Laws now exist
or may be changed or amended or come into effect in the future.

     Section 9.12 Entire Agreement.

     The Loan Documents constitute the entire understanding and agreement between Grantor and
Beneficiary with respect to the transactions arising in connection with the Loan, and supersede all
prior written or oral understandings and agreements between Grantor and Beneficiary with respect to
the matters addressed in the Loan Documents. In particular, and without limitation, the terms of
any commitment by Beneficiary to make the Loan are merged into the Loan Documents. Except as
incorporated in writing into the Loan Documents, there are no representations, understandings,
stipulations, agreements or promises, oral or written, with respect to the matters addressed in the
Loan Documents.

     THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF

-26-

 

PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signatures on following pages]

-27-

 

     IN WITNESS WHEREOF, Grantor has caused this Deed of Trust to be executed as of the day and
year first written above.

	 	 	 	 	 
	GRANTOR:

NNN WESTERN PLACE, LLC, 

a Delaware limited liability company

 	 	 
	By:  	NNN Western Place Manager, LLC,
 a Delaware limited liability company, 
its Manager

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 
a Virginia limited liability company,
 its Manager

 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Office 	 	 
	 
	NNN WESTERN PLACE 1, LLC, 

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 

a Virginia limited liability company, 

its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 2, LLC, 

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 

a Virginia limited liability company, 

its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 

S-1

 

	 	 	 	 	 
	NNN WESTERN PLACE 3, LLC,

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC,

 a Virginia limited liability company,

 its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 4, LLC, 

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 

a Virginia limited liability company,

 its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 5, LLC, 

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 

a Virginia limited liability company,

 its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 6, LLC, 

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 

a Virginia limited liability company, 

its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 

S-2

 

	 	 	 	 	 
	NNN WESTERN PLACE 7, LLC, 

a Delaware limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, 

a Virginia limited liability company, 

its Vice President

 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	GREIT — WESTERN PLACE, LP, 

a Texas limited partnership

 	 	 
	By:  	GREIT — Western Place GP, LLC, 

a Delaware limited liability company, 

its General Partner

 	 	 
	By:  	G REIT Liquidating Trust dated January 22, 2008,

 a Maryland Trust, 

its Sole Member and Manager

 	 	 
	By:  	Gary H. Hunt, W. Brand Inlow,
Edward A. Johnson, 

D. Fleet Wallace, and
Gary T. Wescombe, 

as Trustees of the G REIT Liquidating Trust dated January 22, 2008
 	 	 
	By:  	                                      /s/ Andrea R. Biller
 	 	 
	 	Name:  	Andrea R. Biller 	 	 
	 	Title:  	Authorized Representative 	 	 

S-3

 

	 	 	 	 	 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Jeffrey T. Hanson
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011

 

 

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF CALIFORNIA

	 	)	 	 
	 
	 	)	 	 
	COUNTY OF ORANGE

	 	)	 	 

On February 15, 2008, before me, P.C. Han, a Notary Public, personally appeared Andrea R. Biller
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that she executed the same in her authorized capacity,
and that by her signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	Signature /s/ Phil C. Han
 	 	 

My Commission Expires:

June 25, 2011

[Seal] P.C. Han

[Seal] Commission # 1753200

[Seal] Notary Public — California

[Seal] Orange County

[Seal] My Comm. Expires Jun 25, 2011Exhibit 10.24

 

EXHIBIT 10.24

REPAYMENT GUARANTY

     THIS REPAYMENT GUARANTY (this “Guaranty”) is made as of February 15, 2008, by GARY H.
HUNT, W. BRAND INLOW, EDWARD A. JOHNSON, D. FLEET WALLACE, and GARY T. WESCOMBE, as Trustees of the
G REIT Liquidating Trust dated January 22, 2008 (the “Guarantor”) in favor of WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”).

     1. Except as otherwise provided in this Guaranty, initially capitalized terms used in this
Guaranty without definition are defined in that certain Loan Agreement of even date herewith by and
between NNN Western Place, LLC, a Delaware limited liability company, NNN Western Place 1, LLC, a
Delaware limited liability company, NNN Western Place 2, LLC, a Delaware limited liability company,
NNN Western Place 3, LLC, a Delaware limited liability company, NNN Western Place 4, LLC, a
Delaware limited liability company, NNN Western Place 5, LLC, a Delaware limited liability company,
NNN Western Place 6, LLC, a Delaware limited liability company, NNN Western Place 7, LLC, a
Delaware limited liability company, and GREIT — Western Place, LP, a Texas limited partnership
(collectively, the “Borrower”) and Lender (the “Loan Agreement”).

     2. In order to induce Lender to extend to Borrower a loan (whether acting on behalf of itself
or any estate created by the commencement of a case under Title 11 United States Code or any
successor statute thereto (the “Bankruptcy Code”) or any other insolvency, bankruptcy,
reorganization or liquidation proceeding, or by any trustee under the Bankruptcy Code, liquidator,
sequestrator or receiver of Borrower or Borrower’s property or similar Person duly appointed
pursuant to any law generally governing any insolvency, bankruptcy, reorganization, liquidation,
receivership or like proceeding) in the sum of $28,000,000.00 (the “Loan”), evidenced by a
secured promissory note (“Note”), in the aggregate principal amount of $28,000,000.00, each
now or hereafter executed by Borrower and payable to the order of Lender, Guarantor hereby
unconditionally and irrevocably guarantees to Lender and to its successors, endorsees and/or
assigns, the full and prompt payment of (a) the principal sum of the Note in accordance with its
terms when due, by acceleration or otherwise, together with all interest accrued thereon, when due
under the terms of the Note, and any and all other sums of money that become owing by Borrower to
Lender under the Note, Loan Agreement or any other “Loan Document” as such term is defined in the
Loan Agreement (which Note, Loan Agreement and other “Loan Documents” are also collectively
referred to herein as the “Loan Documents”) and (b) any and all sums owing under any “Swap
Contract” as such term is defined in the Loan Agreement (“Swap Contract”). The obligations
guaranteed pursuant to this Section 2 are hereinafter referred to as the “Guaranteed
Obligations.”

          Notwithstanding the foregoing, Guarantor’s obligations hereunder shall in no event exceed an
amount equal to $7,400,000.00 of the principal amount of the Loan outstanding on the date the Notes
become due and payable in full, whether at maturity or by acceleration or otherwise (the
“Guaranteed Principal Amount”), plus 100% of (a) all interest owing on the Loan;
(b) attorneys’ fees and collection costs and all other sums other than principal owing on the Loan;
and (c) any deficiency, loss or damage actually suffered by Lender because of: (1) Borrower’s
commission of a criminal act; (2) the failure to comply with provisions of the

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Loan Documents prohibiting the sale, transfer or encumbrance of the Project; (3) the misapplication
by Borrower of any funds derived from the Project, including security deposits, insurance proceeds,
condemnation awards, rental income or other income arising with respect to the Project; (4)
Borrower’s commission of waste; (5) Borrower’s removal of collateral from the Project without
replacement, (6) Borrower’s violation of law; (7) failure to pay real property taxes, assessments
or other charges which would create liens on any portion of the Project; (8) losses, expense or
liability relating to the presence of hazardous or toxic materials on the Project; (9) the fraud or
intentional misrepresentation by Borrower made in or in connection with the Loan Documents or the
Loan; (10) Borrower’s voluntary filing of any proceeding for relief under any federal or state
bankruptcy, insolvency or receivership laws or any assignment for the benefit of creditors made by
Borrower not dismissed within 180 days; (11) any involuntary filing against Borrower of any
proceeding for relief under any federal or state bankruptcy, insolvency or receivership laws or any
assignment for the benefit of creditors, but only if such involuntary filing was made by Borrower
or an Affiliate of Borrower, or at the instigation or in collusion or acquiescence with Borrower or
an Affiliate of Borrower; (12) Borrower’s interference with Lender’s enforcement proceedings (other
than in good faith by reason of a legitimate defense); (13) Borrower’s failure to maintain required
insurance; (14) Borrower’s collection of rent more than one month in advance; (15) any amount owing
to Lender under indemnity provisions that relate to liabilities to third parties resulting from
acts or omissions of Borrower, contractors or such other third parties with whom Borrower has
dealt, and/or from the ownership, occupancy or use of the Project; (16) any amounts necessary to
ensure lien-free completion of any tenant improvements which Borrower is obligated to construct
under any leases; (17) any violation of Section 12.29 of the Loan Agreement; (18) any modification
of the TIC Agreement in violation of Section 11.1(u) of the Loan Agreement; or (19) any violation
of Section 11.1(v) of the Loan Agreement. Guarantor’s obligations shall not be affected, impaired,
lessened or released by loans, credits or other financial accommodations now existing or hereafter
advanced by Lender to Borrower in excess of the Guaranteed Principal Amount. In no event shall the
Guaranteed Principal Amount be reduced as a result of (a) Lender’s foreclosure or acceptance of a
deed in lieu of foreclosure with respect to any collateral securing the Loan, or (b) Guarantor’s
payment of the Loan or any portion thereof prior to the date when the entire Loan becomes due and
payable in full, whether at maturity or by acceleration or otherwise. The agreement of Lender to
the foregoing limitation on Guarantor’s liability shall in no way be deemed to limit or restrict
the right of Lender to apply any sums paid by Guarantor to any portion of the Loan.

          The indebtedness guaranteed by Guarantor hereunder shall be deemed to be the last indebtedness
which remains outstanding under the Loan Documents after the application of payments received from
Borrower and the application of proceeds received from the foreclosure of the Mortgage and other
liquidation of any collateral for the Loan (subject to the above limitations on the maximum amount
of principal indebtedness guaranteed hereby), and Guarantor may not claim or contend so long as any
such indebtedness remains outstanding that any payments received by Lender from Borrower or
otherwise, or proceeds received by Lender on the liquidation of the Project, shall have reduced or
discharged Guarantor’s liability or obligations hereunder. Nothing contained in this paragraph
shall be deemed to (i) limit or otherwise impair any of the waivers or agreements of Guarantor
contained in this Guaranty or (ii) require Lender to proceed against Borrower, any collateral or
any other Guarantor before proceeding against any particular Guarantor (any such requirement having
been specifically waived).

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     3. (a) Guarantor waives any and all rights of subrogation, reimbursement, indemnification and
contribution, and any other rights and defenses that are or may become available to Guarantor,
including, without limitation, any and all rights or defenses Guarantor may have by reason of
protection afforded to the principal with respect to any of the Guaranteed Obligations or to any
other guarantor of any of the Guaranteed Obligations with respect to such guarantor’s obligations
under its guaranty, in either case, pursuant to the antideficiency or other laws of this state
limiting or discharging the principal’s indebtedness or such other guarantor’s obligations; and

          (b) Guarantor waives all rights and defenses that Guarantor may have because Borrower’s debt
is secured by real property. This means, among other things:

          (i) Lender may collect from Guarantor without first foreclosing on any real or personal
property collateral pledged by Borrower;

          (ii) If Lender forecloses on any real property collateral pledged by Borrower:

          (A) The amount of the debt may be reduced only by the price for which that
collateral is sold at the foreclosure sale, even if the collateral is worth more
than the sale price;

          (B) Lender may collect from Guarantor even if the Lender, by foreclosing on the
real property collateral, has destroyed any right Guarantor may have to collect from
Borrower.

This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may
have because Borrower’s debt is secured by real property; and

          (c) Guarantor waives all rights and defenses arising out of an election of remedies by Lender,
even though that election of remedies, such as a nonjudicial foreclosure with respect to security
for the Guaranteed Obligations, has destroyed Guarantor’s rights of subrogation and reimbursement
against Borrower, and even though that election of remedies by Lender has destroyed Guarantor’s
rights of contribution against another guarantor of any of the Guaranteed Obligations.

No other provision of this Guaranty shall be construed as limiting the generality of any of the
covenants and waivers set forth in this Section 3.

     4. Guarantor represents and warrants to Lender that Guarantor has a financial interest in
Borrower or is otherwise affiliated with Borrower. In that regard, Guarantor agrees that Lender’s
agreement to make the Loan to Borrower is of substantial and material benefit to Guarantor and
further agrees as follows:

          (a) Guarantor shall continue to be liable under this Guaranty and the provisions hereof will
remain in full force and effect notwithstanding (i) any modification, agreement or stipulation
between Borrower and Lender or their respective successors and assigns, with respect to the Loan
Documents or the Swap Contracts or the obligations

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encompassed thereby, including, without limitation, the Guaranteed Obligations, (ii) Lender’s
waiver of or failure to enforce any of the terms, covenants or conditions contained in the Loan
Documents or the Swap Contracts or in any modification thereof, (iii) any discharge or release of
Borrower or any other guarantor from any liability with respect to the Guaranteed Obligations, (iv)
any discharge, release, exchange or subordination of any real or personal property then held by
Lender as security for the performance of the Guaranteed Obligations, (v) any additional security
taken for the Guaranteed Obligations, whether real or personal property, (vi) any foreclosure or
other realization on any security for the Guaranteed Obligations, regardless of the effect upon
Guarantor’s subrogation, contribution or reimbursement rights against Borrower or any other
guarantor, (vii) any additional loans or financial accommodations to Borrower or (viii) the manner
or order by which payments are applied to principal, interest or other obligations under the Loan
Documents and the Swap Contracts. Without limiting the generality of the foregoing, Guarantor
hereby agrees that Guarantor’s liability shall continue even if Lender alters any obligations under
the Loan Documents or the Swap Contracts in any respect or Lender’s remedies or rights against
Borrower are in any way impaired or suspended without Guarantor’s consent.

          (b) Guarantor’s liability under this Guaranty shall continue until all sums due under the Note
have been paid in full and until all Guaranteed Obligations to Lender have been satisfied, and
shall not be reduced by virtue of any payment by Borrower of any amount due under the Note or under
any of the Loan Documents or Swap Contracts or Lender’s recourse to any collateral or security.

          (c) Guarantor represents and warrants to Lender that Guarantor now has and will continue to
have full and complete access to any and all information concerning the transactions contemplated
by the Loan Documents or Swap Contracts or referred to therein, the value of the assets owned or to
be acquired by Borrower, Borrower’s financial status and its ability to pay and perform the
Guaranteed Obligations owed to Lender. Guarantor further represents and warrants that Guarantor
has reviewed and approved copies of the Loan Documents and Swap Contracts and is fully informed of
the remedies Lender may pursue, with or without notice to Borrower, in the event of default under
the Note or other Loan Documents or Swap Contracts. So long as any of the Guaranteed Obligations
remains unsatisfied or owing to Lender, Guarantor shall keep fully informed as to all aspects of
Borrower’s financial condition and the performance of the Guaranteed Obligations.

          (d) Guarantor acknowledges and agrees that Guarantor may be required to perform the Guaranteed
Obligations in accordance with the terms hereof notwithstanding the fact that the Loan has fully
matured, that the outstanding principal balance thereof is fully due and payable and that Borrower
is in default of its obligation to pay the full amount due under the Note on the maturity thereof.

     5. The liability of Guarantor under this Guaranty is a guaranty of payment and performance and
not of collectibility, and is not conditioned or contingent upon the genuineness, validity,
regularity or enforceability of the Loan Documents, Swap Contracts or other instruments relating to
the creation or performance of the Guaranteed Obligations or the pursuit by Lender of any remedies
which any now has or may hereafter have with respect thereto under the Loan Documents or Swap
Contracts, at law, in equity or otherwise. Guarantor hereby agrees

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that Guarantor shall be liable even if Borrower had no liability at the time of execution of
any of the Loan Documents or Swap Contracts or thereafter ceases to be liable, and Guarantor’s
liability may be larger in amount and more burdensome than that of Borrower. Guarantor’s liability
hereunder shall not be limited or affected in any way by any impairment or any diminution or loss
of value of any security or collateral for the Loan, whether caused by hazardous substances or
otherwise, Lender’s failure to perfect a security interest in such security or collateral or any
disability or other defense of Borrower or any other guarantor.

     6. Guarantor hereby waives to the extent permitted by law: (i) all notices to Guarantor, to
Borrower, or to any other Person, including without limitation notices of the acceptance of this
Guaranty or the creation, renewal, extension, modification, accrual of any of the Guaranteed
Obligations owed to Lender, enforcement of any right or remedy with respect thereto and notice of
any other matters relating thereto; (ii) diligence and demand of payment, presentment, protest,
dishonor and notice of dishonor; (iii) any statute of limitations affecting Guarantor’s liability
hereunder or the enforcement thereof; and (iv) all principles or provisions of law which conflict
with the terms of this Guaranty. Guarantor further agrees that Lender may enforce this Guaranty
upon the occurrence of an event of default under the Note or the other Loan Documents or Swap
Contracts (as event of default is described therein), notwithstanding the existence of any dispute
between Borrower and Lender with respect to the existence of said event of default or performance
of the Guaranteed Obligations or any counterclaim, set-off or other claim which Borrower may allege
against Lender with respect thereto. Moreover, Guarantor agrees that Guarantor’s obligations shall
not be affected by any circumstances which constitute a legal or equitable discharge of a guarantor
or surety.

     7. Guarantor agrees that Lender may enforce this Guaranty without the necessity of resorting
to or exhausting any security or collateral (including, without limitation, pursuant to a judicial
or nonjudicial foreclosure) and without the necessity of proceeding against Borrower or any other
guarantor. Guarantor hereby waives the right to require Lender to proceed against Borrower, to
proceed against any other guarantor, to foreclose any lien on any real or personal property, to
exercise any right or remedy under the Loan Documents and Swap Contracts, to draw upon any letter
of credit issued in connection herewith, or to pursue any other remedy or to enforce any other
right.

     8. (a) Guarantor agrees that nothing contained herein shall prevent Lender from suing on the
Note or from exercising any rights available to it under the Note or under any of the other Loan
Documents or Swap Contracts and that the exercise of any of the aforesaid rights will not
constitute a legal or equitable discharge of Guarantor. Guarantor understands that the exercise by
Lender of certain rights and remedies contained in the Swap Contracts and Loan Documents (such as a
nonjudicial foreclosure) may affect or eliminate Guarantor’s right of subrogation against Borrower
and that Guarantor may therefore incur a partially or totally non-reimbursable liability hereunder;
nevertheless, Guarantor hereby authorizes and empowers Lender to exercise, in its sole discretion,
any rights and remedies, or any combination thereof, which may then be available to Lender, since
it is the intent and purpose of Guarantor that the obligations hereunder are absolute, independent
and unconditional under any and all circumstances. Guarantor expressly waives any defense (which
defense, if Guarantor had not given this waiver, Guarantor might otherwise have) to a judgment
against Guarantor by reason of a nonjudicial foreclosure sale. Notwithstanding any foreclosure of
the lien of any mortgage or

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security agreement with respect to any or all of the real or personal property secured
thereby, whether by the exercise of the power of sale contained therein, by an action for judicial
foreclosure or by an acceptance of a deed in lieu of foreclosure, Guarantor shall remain bound
under this Guaranty.

          (b) Guarantor shall have no right of subrogation against Borrower or against any collateral or
security provided for in the Loan Documents or Swap Contracts and no right of reimbursement or
contribution against any other guarantor unless and until all Guaranteed Obligations have been
indefeasibly paid and satisfied in full, and Lender has released, transferred or disposed of all of
their rights, title and interest in any collateral or security. To the extent the waiver of
Guarantor’s rights of subrogation, reimbursement and contribution as set forth herein is found by a
court of competent jurisdiction to be void or voidable for any reason, Guarantor further agrees
that Guarantor’s rights of subrogation and reimbursement against Borrower and Guarantor’s rights of
subrogation against any collateral or security shall be junior and subordinate to any rights Lender
may have against Borrower and to all rights, title and interest Lender may have in such collateral
or security, and Guarantor’s rights of contribution against any other guarantor shall be junior and
subordinate to any rights Lender may have against such other guarantor. Lender may use, sell or
dispose of any item of collateral or security as it sees fit without regard to Guarantor’s
subrogation and contribution rights, and upon disposition or sale of any item, Guarantor’s rights
with respect to such item will terminate. Guarantor understands that Guarantor may record a
Request for Notice of Default and thereby receive notice of any proposed foreclosure of any real
property collateral then securing the Guaranteed Obligations. With respect to the foreclosure of
any security interest in any personal property collateral then securing the Guaranteed Obligations,
Lender agrees to give Guarantor five (5) days’ prior written notice, in the manner set forth in
Section 11 hereof, of any sale or disposition of any such personal property collateral, other than
collateral which is perishable, threatens to decline speedily in value, is of a type customarily
sold on a recognized market, or is cash, cash equivalents, certificates of deposit or the like.

          (c) Guarantor’s sole right with respect to any such foreclosure of real or personal property
collateral shall be to bid at such sale in accordance with applicable law. Guarantor acknowledges
and agrees that Lender may also bid at any such sale and in the event such collateral is sold to
Lender in whole or in partial satisfaction of the Guaranteed Obligations (or any portion thereof),
Guarantor shall have no further right or interest with respect thereto. Notwithstanding anything
to the contrary contained herein, no provision of this Guaranty shall be deemed to limit, decrease,
or in any way to diminish any rights of set-off Lender may have with respect to any cash, cash
equivalents, certificates of deposit, letters of credit or the like which may now or hereafter be
deposited with Lender by Borrower.

          (d) To the extent any dispute exists at any time between or among Guarantor and any other
guarantor of the Guaranteed Obligations as to Guarantor’s or any other guarantor’s right to
contribution or otherwise, Guarantor agrees to indemnify, defend and hold Lender harmless from and
against any loss, damage, claim, demand, cost or any other liability (including, without
limitation, reasonable attorneys’ fees and costs) Lender may suffer as a result of such dispute.

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          (e) So long as any of the Guaranteed Obligations are owing to Lender, Guarantor shall not,
without the prior written consent of Lender, commence or join with any other party in commencing
any bankruptcy, reorganization or insolvency proceedings of or against Borrower. The obligations
of Guarantor under this Guaranty shall not be altered, limited or affected by any case, voluntary
or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or
arrangement of Borrower or by any defense which Borrower may have by reason of the order, decree or
decision of any court or administrative body resulting from any such case. Lender shall have the
sole right to accept or reject any plan on behalf of Guarantor proposed in such case and to take
any other action which Guarantor would be entitled to take, including, without limitation, the
decision to file or not file a claim. Guarantor acknowledges and agrees that any interest on the
Guaranteed Obligations which accrues after the commencement of any such proceeding (or, if interest
on any portion of the Guaranteed Obligations ceases to accrue by operation of law by reason of the
commencement of said proceeding, such interest as would have accrued on any such portion of the
Guaranteed Obligations if said proceedings had not been commenced) will be included in the
Guaranteed Obligations because it is the intention of the parties that the Guaranteed Obligations
should be determined without regard to any rule or law or order which may relieve Borrower of any
portion of such Guaranteed Obligations. Guarantor hereby permits any trustee in bankruptcy,
receiver, debtor in possession, assignee for the benefit of creditors or similar Person to pay
Lender, or allow the claim of Lender in respect of, any such interest accruing after the date on
which such proceeding is commenced. Guarantor hereby assigns to Lender Guarantor’s right to
receive any payments from any trustee in bankruptcy, receiver, debtor in possession, assignee for
the benefit of creditors or similar Person by way of dividend, adequate protection payment or
otherwise. If all or any portion of the Guaranteed Obligations are paid or performed by Borrower,
the obligations of Guarantor hereunder shall continue and remain in full force and effect in the
event that all or any part of such payment(s) or performance(s) is avoided or recovered directly or
indirectly from Lender as a preference, fraudulent transfer or otherwise in such case irrespective
of payment in full of all obligations under the Loan Documents and Swap Contracts.

     9. (a) Guarantor represents and warrants that any financial statements, tax returns or other
documents of Guarantor heretofore delivered to Lender are true and correct in all material
respects. Such statements were prepared in accordance with generally accepted accounting
principles, consistently applied and fairly present the financial position of Guarantor as of the
date thereof. Guarantor further represents and warrants that no material adverse change has
occurred in Guarantor’s financial position since the date of such statements.

          (b) Guarantor covenants and agrees to provide Lender with any and all financial information
required by Lender pursuant to the Loan Agreement. Guarantor further covenants and agrees to
immediately notify Lender of any material adverse change in Guarantor’s financial status.

     10. All notices, requests and demands to be made hereunder to the parties hereto must be in
writing and given as provided in the notice provisions of the Loan Agreement (at the addresses set
forth below).

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	 	To Lender:
	 	Wachovia Bank, National Association
	 

	 	 	 	Real Estate Financial Services
	 

	 	 	 	Mail Code: CA 6233
	 

	 	 	 	15750 Alton Parkway
	 

	 	 	 	Irvine, California 92618
	 

	 	 	 	Attn: Anne McNeil
	 

	 	 	 	Telephone: (949) 754-7034
	 

	 	 	 	Facsimile: (949) 754-4814
	 
	 	 	 	 
	 

	 	To Guarantor:
	 	G REIT Liquidating Trust dated January 22, 2008
	 

	 	 	 	c/o Grubb & Ellis Realty Investors, LLC
	 

	 	 	 	1551 N. Tustin Avenue, Suite 300
	 

	 	 	 	Santa Ana, California 92705
	 

	 	 	 	Attn: Andrea Biller
	 

	 	 	 	Telephone: (714) 667-8252
	 

	 	 	 	Facsimile: (714) 918-9138
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Gregory Kaplan, PLC
	 

	 	 	 	7 East Second Street
	 

	 	 	 	Richmond, Virginia
	 

	 	 	 	Attn: Joseph J. McQuade, Esq.
	 

	 	 	 	Telephone: (804) 525-1785
	 

	 	 	 	Facsimile: (804) 525-1885

     11. Guarantor represents and warrants to Lender as follows:

          (a) No consent of any other Person, including, without limitation, any creditors of Guarantor,
and no license, permit, approval or authorization of, exemption by, notice or report to, or
registration, filing or declaration with, any governmental authority is required by Guarantor in
connection with this Guaranty or the execution, delivery, performance, validity or enforceability
of this Guaranty and all obligations required hereunder. This Guaranty has been duly executed and
delivered by Guarantor, and constitutes the legally valid and binding obligation of Guarantor
enforceable against Guarantor in accordance with its terms.

          (b) The execution, delivery and performance of this Guaranty will not violate any provision of
any existing law or regulation binding on Guarantor, or any order, judgment, award or decree of any
court, arbitrator or governmental authority binding on Guarantor, or of any mortgage, indenture,
lease, contract or other agreement, instrument or undertaking to which Guarantor is a party or by
which Guarantor or any of its assets may be bound, and will not result in, or require, the creation
or imposition of any lien on any of Guarantor’s property, assets or revenues pursuant to the
provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or
undertaking.

     12. Guarantor’s performance of a portion, but not all, of the Guaranteed Obligations will in
no way limit, affect, modify or abridge Guarantor’s liability for that portion of the Guaranteed
Obligations that is not performed. Without in any way limiting the generality of the foregoing, in
the event that Lender is awarded a judgment in any suit brought to enforce

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Guarantor’s covenant to perform a portion of the Guaranteed Obligation, such judgment will in
no way be deemed to release Guarantor from its covenant to perform any portion of the Guaranteed
Obligation which is not the subject of such suit.

     13. Guarantor covenants and agrees to provide the financial information required for Guarantor
in Section 10.8 of the Loan Agreement.

     14. Guarantor shall at all times maintain a combined net worth of at least Forty Million
Dollars ($40,000,000). As used herein, “net worth” shall mean an amount equal to the gross fair
market value of all of the applicable Guarantor’s assets (excluding any value for goodwill,
trademarks, patents, copyrights and other similar intangible items), less an amount equal to all of
such Guarantor’s liabilities (including guaranties and other contingent liabilities), all as
reasonably determined by Lender.

     15. Guarantor shall at all times maintain combined unencumbered liquid assets equal to at
least Five Million Dollars ($5,000,000). “Liquid assets” means the following assets of Guarantor:
(i) Cash; (ii) certificates of deposit or time deposits with terms of six (6) months or less; (iii)
A—1/P—1 commercial paper with a term of three (3) months or less; (iv) U.S. treasury bills and
other obligations of the federal government, all with terms of six (6) months or less; (v) readily
marketable securities (excluding “margin stock” (within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System), restricted stock and stock subject to the provisions of
Rule 144 of the Securities and Exchange Commission); (vi) bankers’ acceptances issued for terms of
six (6) months or less by financial institutions; (vii) repurchase agreements with terms of six (6)
months or less covering U.S. government securities; (viii) unfunded capital commitments in
Guarantor; and (ix) the undrawn amounts under credit lines available for disbursement to Guarantor.

     16. This Guaranty is solely for the benefit of Lender and is not intended to nor may it be
deemed to be for the benefit of any third party, including Borrower.

     17. Guarantor represents and warrants to Lender as follows:

          (a) Guarantor, is duly formed and validly existing, and has the power to own its assets and to
transact the business in which it is now engaged.

          (b) Guarantor has the power, authority and legal right to execute, deliver and perform this
Guaranty and all obligations required hereunder and has taken all necessary action to authorize its
execution, delivery and performance of this Guaranty and all obligations required hereunder. The
execution, delivery and performance of this Guaranty will not violate any of the formation or
governing documents of Guarantor or of any laws pursuant to which Guarantor has been formed.

     18. Guarantor hereby grants Lender a security interest in any personal property of Borrower in
which Guarantor hereafter acquires any right, title or interest. Guarantor agrees that such
security interest is additional security for the obligations hereby guaranteed. Such security
interest is superior to any right of Guarantor in such personal property until all sums due under
the Notes or other Loan Documents and Swap Contracts have been repaid in full and all Guaranteed
Obligations have been fully satisfied.

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     19. Lender may assign this Guaranty with any Loan Document or Swap Contracts, without in any
way affecting Guarantor’s liability hereunder. Any married person executing this Guaranty agrees
that recourse may be had against community property and separate property for the satisfaction of
all obligations hereby guaranteed. This Guaranty shall be binding upon Guarantor, Guarantor’s
heirs, representatives, administrators, executors, successors and assigns and shall inure to the
benefit of and shall be enforceable by Lender, and their successors, endorsees and assigns. As
used herein, the singular includes the plural, and the masculine includes the feminine and neuter
and vice versa, if the context so requires.

     20. In the event of any dispute or litigation regarding the enforcement or validity of this
Guaranty, Guarantor shall be obligated to pay all charges, costs and expenses (including, without
limitation, reasonable attorneys’ fees) incurred by Lender, whether or not any action or proceeding
is commenced regarding such dispute and whether or not such litigation is prosecuted to judgment.

     21. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF TEXAS.

     22. To the maximum extent permitted by law, Guarantor and Lender hereby voluntarily, knowingly
and intentionally WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY in any legal action or proceeding
arising under or in connection with this Guaranty or any other Loan Document or Swap Contract or
concerning the Guaranteed Obligations and/or any collateral therefor or pertaining to any
transaction related to or contemplated in any Loan Document or Swap Contract, regardless of whether
such action or proceeding concerns any contractual or tortious or other claim. Guarantor
acknowledges that this waiver of jury trial is a material inducement to Lender in extending credit
to Borrower, that Lender would not have extended such credit without this jury trial waiver, and
that Guarantor has been represented by an attorney or has had an opportunity to consult with an
attorney regarding this Guaranty and understands the legal effect of this jury trial waiver.

     23. Guarantor hereby submits to the jurisdiction of the state and federal courts in the State
of Texas and State of California for purposes of any action arising from or growing out of this
Guaranty, and further agrees that the venue of any such action may be laid in Orange County,
California, or Tarrant County, Texas, and that (in addition to any other method provided by law for
service of process) service of process in any such action may be made on Guarantor by the delivery
of the process to Shannon Johnson, whose present address is c/o Grubb & Ellis Realty Investors,
LLC, 1551 N. Tustin Avenue, Suite 300, Santa Ana, California 92705, whom Guarantor hereby appoints
as Guarantor’s agent for service of process. Nothing contained in this Guaranty, however, shall be
deemed to constitute, or to imply the existence of, any agreement by Lender to bring any such
action only in said courts or to restrict in any way any of Lender’s remedies or rights to enforce
the terms of this Guaranty as, when and where Lender shall deem appropriate, in its sole
discretion.

     24. No provision of this Guaranty may be changed, waived, revoked or amended without Lender’s
prior written consent. Every provision of this Guaranty is intended to be severable. If any term
or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court of
competent jurisdiction, such illegality or invalidity will not affect the

-10-

 

balance of the terms and provisions hereof, which terms and provisions will remain binding and
enforceable.

     25. This Guaranty may be executed in any number of counterparts each of which shall be deemed
an original and all of which shall constitute one and the same guaranty with the same effect as if
all parties had signed the same signature page. Any signature page of this Guaranty may be
detached from any counterpart of this Guaranty and reattached to any other counterpart of this
Guaranty identical in form hereto but having attached to it one or more additional signature pages.

     26. No failure or delay on the part of Lender to exercise any power, right or privilege under
this Guaranty will impair any such power, right or privilege, or be construed to be a waiver of any
default or an acquiescence therein, nor will any single or partial exercise of such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privilege.

     27. This Guaranty embodies the entire agreement among the parties hereto with respect to the
matters set forth herein, and supersedes all prior agreements among the parties with respect to the
matters set forth herein. No course of prior dealing among the parties, no usage of trade, and no
parol or extrinsic evidence of any nature may be used to supplement, modify or vary any of the
terms hereof. There are no conditions to the full effectiveness of this Guaranty.

     28. This Guaranty is in addition to all other guaranties of Guarantor and any other guarantors
of Borrower’s obligations to Lender.

     29. GUARANTOR ACKNOWLEDGES THAT GUARANTOR HAS BEEN AFFORDED THE OPPORTUNITY TO READ THIS
DOCUMENT CAREFULLY AND TO REVIEW IT WITH AN ATTORNEY OF GUARANTOR’S CHOICE BEFORE SIGNING IT.
GUARANTOR ACKNOWLEDGES HAVING READ AND UNDERSTOOD THE MEANING AND EFFECT OF THIS DOCUMENT BEFORE
SIGNING IT.

     30. When two or more persons or entities have executed this Guaranty, unless the context
clearly indicates otherwise, all references herein to “Guarantor” shall mean the guarantors
hereunder or either or any of them. All of the obligations and liabilities of said guarantors
under this Guaranty (and the obligations of other guarantors under any similar or other guaranties
of part or all of the Guaranteed Obligations) shall be joint and several. Suit may be brought
against said guarantors, jointly and severally, or against any one or more of them (even if less
than all), without impairing the rights of Lender against the other or others of said guarantors;
and Lender may settle with any one or more of said guarantors for such sums or sum as it may see
fit and/or Lender may release any of said guarantors from all further liability to Lender for such
indebtedness without impairing the right of Lender to demand and collect the balance of such
indebtedness from the other or others of said guarantors not so released; but it is agreed among
said guarantors themselves, however, that such settlement and release shall in no way impair the
rights of said guarantors as among themselves.

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     IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first above written.

	 	 	 	 	 	 
	“Guarantor”
	 
	 	 	 	 	 
	G REIT LIQUIDATING TRUST DATED	 
	JANUARY 22, 2008, a Maryland Trust	 
	 
	 	 	 	 	 
	By:	 	Gary H. Hunt, W. Brand Inlow,	 
	 	 	Edward A. Johnson, D. Fleet Wallace,	 
	 	 	and Gary T. Wescombe, as Trustees of	 
	 	 	the G REIT Liquidating Trust dated	 
	 	 	January 22, 2008	 
	 
	 	 	 	 	 
	By:	 	/s/ Andrea R. Biller	 
	 

	 	Name:
	 	Andrea R. Biller	 
	 

	 	Title:
	 	Authorized Representative	 

S-1

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