Document:

exv10w76

Exhibit 10.76

EXECUTION DRAFT

 

BORROWING BASE REVOLVING LINE OF CREDIT AGREEMENT

DATED AS OF DECEMBER 16, 2009

BY AND AMONG

COLE
REIT III OPERATING PARTNERSHIP, LP,

AND THE
PROJECT BORROWERS,

AS BORROWER,

AND

TCF
NATIONAL BANK,

AS LENDER

 

 

 

BORROWING BASE REVOLVING LINE

OF CREDIT AGREEMENT

     This BORROWING BASE REVOLVING LINE OF CREDIT AGREEMENT (this “Agreement”) dated as of December
16, 2009 is made and entered into by and among COLE REIT III OPERATING PARTNERSHIP, LP, a Delaware
limited partnership, the Project Borrowers (as hereinafter defined), and TCF NATIONAL BANK, a
national banking association (the “Lender”).

RECITALS

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

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

AGREEMENT

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

ARTICLE 1

DEFINITIONS

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

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

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

     “Adjusted One Month LIBO Rate” means, an interest rate per annum equal to the
sum of (i) 250 basis points plus (ii) the Adjusted LIBO Rate for a one month
Interest Period on such day (or if such day is not a Business Day, the immediately preceding
Business Day); provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day
shall be based on the rate appearing on Page 3750 of Telerate (the equivalent of
Reuters Screen LIBOR01 Page) (or on any successor or substitute page thereof, or any
successor to or substitute for such page, providing rate quotations comparable to those

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currently provided on such page, as determined by the Lender from time to time for purposes
of providing quotations of interest rates applicable to dollar deposits in the London
interbank market) (rounded upwards, if necessary, to the next 1/16 of 1%).

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

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

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

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

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

     “Appraised Value” means, with respect to each Qualified Property, the appraised
value of such Qualified Property set forth in the most recent Appraisal for such Qualified
Property as approved by Lender in its sole but reasonable discretion.

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

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

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

          (a) The Commitment Amount; or

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

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

     “Borrower” means, jointly and severally, COP III and the Project Borrowers.

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

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

     “Borrowing Base” means as defined in Section 3.1, as determined by
Lender from time to time.

     “Borrowing Base Report and Collateral Certificate” means a report prepared by
COP III, signed and certified as accurate and complete by an authorized officer of CCPT III,
as general partner of COP III, in substantially the form of Exhibit F or another
form which is reasonably acceptable to Lender.

     “Borrower Base Value” means as defined in Section 3.1, as determined by
Lender from time to time in Lender’s sole but reasonable discretion.

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

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

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

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

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

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

     “Collateral Change Fee” means a fee of One Thousand and No/100 Dollars
($1,000.00) payable upon the closing of a Collateral Change.

     “Collateral Change” means each transaction consisting of the addition and/or
removal of one or more Qualified Properties pursuant to Section 4.3.

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

     “Commitment Amount” means, on and prior to the Revolving Facility Termination
Date, the amount of Twenty-five Million and No/100 Dollars ($25,000,000.00), and thereafter,
the amount of Twenty-three Million and No/100 Dollars ($23,000,000.00)

     “Commitment Fee” means Two Hundred Fifty Thousand and No/100 Dollars
($250,000.00),

     “Compliance Certificate” means a Certificate in the form of Exhibit B
attached hereto or another form which is reasonably acceptable to each of Lender and COP
III.

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

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payments in respect of any such Indebtedness which is not amortized through equal periodic installments of principal and
interest over the term of such Indebtedness), equal to the greater of (x) the percentage of
the principal amount of such Indebtedness for which any member of the Consolidated Group is
liable (to the extent not already included pursuant to clause (b) above) and (y) the
Consolidated Group Pro Rata Share of such Investment Affiliate.

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

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

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

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

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

     “Debt Service Coverage Ratio” means, as of any date of determination, the ratio
of the aggregate NOI generated by all Qualified Properties for the four (4) consecutive
fiscal quarters most recently completed over the Total Debt Service for such four (4) fiscal
quarter period, which ratio shall be certified by Borrower in the financial reports
specified in Section 6.4 of this Agreement.

     “Debt Yield” means, as of any date of determination, and with respect to all of
the Qualified Properties, the quotient obtained when the numerator is equal to (a) the
aggregate NOI for such Qualified Properties for the four (4) consecutive fiscal quarters

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most recently completed, and the denominator is (b) the Available Commitment. By example,
if the NOI for the prior four (4) fiscal quarters were $4,000,000.00 and the then Available
Commitment were $23,000,000.00, the resulting Debt Yield would be 17.39% [calculated as
follows: $4,000,000.00 / $23,000,000.00 = 17.39%].

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

     “Disqualified Property” means as defined in Section 4.2.

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

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

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

     “Draw Request” means a completed request, substantially in the form of
Exhibit C, from Borrower to Lender requesting an Advance.

     “EBITDA” means, with respect to the Consolidated Group for any period,
consolidated net income of the Consolidated Group as determined in accordance with GAAP
plus, to the extent previously deducted, interest, taxes, depreciation, amortization,
straight lining of rents, gains or losses from sales of assets, extraordinary items, other
non-cash items, fees and expenses associated with the transaction contemplated by this
Agreement, managements fees and expenses and real estate acquisition costs and expenses
and the Consolidated Group Pro Rata Share of interest, taxes, depreciation, amortization,
straight lining of rents, gains or losses from sales of assets, extraordinary items, other
non-cash items, management fees and expenses and real estate acquisition costs and expenses
for the Investment Affiliates.

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

     “Eligible Collateral” means those Qualified Properties that have been
identified by Borrower in a Borrowing Base Report and Collateral Certificate submitted
Lender to as provided for in Section 3.4 of this Agreement that meet the requirements of
Eligible Collateral set forth in this Agreement, subject to the exclusions set forth in this
Agreement and expressly excluding any Disqualified Property.

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

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

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

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

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

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

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

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

     “Fiscal Year” means, as applicable, the fiscal year of COP III ending on each
December 31, or the fiscal year of CCPT III ending on each December 31.

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

     “Fixed Rate” means, with respect to a Eurodollar Borrowing for the relevant
Interest Period, the greater of (i) 4.5% per annum, or (ii) the sum of (a) the applicable
Adjusted LIBO Rate plus (b) 350 basis points.

     “Fixed Rate Borrowing” has the same meaning as a Eurodollar Borrowing.

     “Floating Rate” means, for any day, the greater of (i) 4.5% per annum, or (ii)
the sum of (a) a rate per annum equal to the Prime Rate for such day plus (b) 100
basis points; provided that the Prime Rate used to calculate the sum described in (ii) above
shall never be less than the Adjusted One Month LIBO Rate. Any change in the Floating Rate
due to a change in the Prime Rate or the Adjusted One Month LIBO Rate shall be effective
from and including the effective date of such change in the Prime Rate or the Adjusted One
Month LIBO Rate, respectively.

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

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

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

     “GAAP” means generally accepted accounting principles consistently applied.

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

     “Guarantor” means CCPT III.

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

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“Impositions” means any and all of the following:

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

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

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

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

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

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

          (g) Assessment, documentary, indebtedness, license, stamp and revenue
charges, fees and taxes and any other fees or taxes imposed on Lender and
measured by or based in whole or in part upon ownership of the Mortgage
Instruments, interest in Collateral, or any promissory note, guaranty or
Indebtedness secured by the Mortgage Instruments or upon the nature or
amount of the Obligations;

excluding, however, from all of the foregoing, Excluded Taxes.

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

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

     “Initial Project Borrower” means, individually and collectively, Cole BB
Lakewood CO, LLC, Cole CV Liberty MO, LLC, Cole CV Noblesville IN, LLC, Cole CV Oak Forest
IL, LLC, Cole KO Burnsville MN, LLC, Cole WG Indianapolis IN, LLC,

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Cole WG Grand Junction CO, LLC, Cole WG South Bend IN, LLC, and Cole ST Iowa City IA, LLC.

     “Interest Election Request” means a request by Borrower to convert or continue
a Borrowing in accordance with Section 2.2, substantially in the form of Exhibit
D.

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

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

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

     “Investment” means, with respect to any Person, any outstanding loan or advance
(other than deposits made in connection with any acquisition of Qualified Properties or
other assets and advances made in the ordinary course of business that would be
recorded as accounts receivable on the balance sheet of such Person prepared in accordance
with GAAP) made by such Person to any other Person; any contingent liabilities of such
Person undertaken with respect to outstanding Indebtedness of any other Person; and any
ownership or similar interest held by such Person in any other Person.

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

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

     “JPM Indebtedness” means the revolving credit facility owed or to be owed by
COP III and certain Affiliates (other than any Project Borrower) to one or more lenders in
an aggregate principal amount available not to exceed $200,000,000, which is secured by

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assets of COP III and one or more Subsidiaries of COP III or CCPT III (other than any
Project Borrower) and guaranteed by Guarantor.

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

     “Leases” means, collectively, any lease or other agreement for the use and
occupancy of all or any portion of the Improvements, whether now in existence or hereafter
arising, including any amendments or supplements thereto.

     “Lease Documents” means the Leases and all other documents, agreements and
instruments executed and delivered in connection therewith, including any amendments or
supplements thereto.

     “Lending Office” means Lender’s office located at its address set forth on the
signature page hereof as its Lending Office or such other office as Lender may hereafter
designate as its Lending Office by written notice to Borrower.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, the rate appearing on Page 3750 of Telerate (the equivalent of Reuters Screen
LIBOR01 Page) (or on any successor or substitute page thereof, or any successor to or
substitute for such page, providing rate quotations comparable to those currently
provided on such page, as determined by the Lender from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the London interbank
market) at approximately 11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period. In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate at which dollar deposits of $5,000,000.00 and for a
maturity comparable to such Interest Period are offered by the principal London office of
the Lender in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest
Period.

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

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

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

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instrument, under any law, ordinance, regulation, or rule (federal, state, or local), or otherwise; and

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

     “Loan Documents” means this Agreement, the Note, the Mortgage Instruments, the
Environmental Agreement and any other agreements, assignments, documents or instruments now
or hereafter evidencing, guarantying or securing the Commitment and any and all Advances, as
such documents may be amended, restated, supplemented or otherwise modified from time to
time.

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

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

     “Maturity Date” means December 16, 2014.

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

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

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

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

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

     “Note” means that certain Revolving Promissory Note of even date herewith
executed by Borrower and payable to Lender, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

     “Obligations” means all unpaid principal of and accrued and unpaid interest on
the Outstanding Credit Exposure, any and all obligations, contingent or otherwise, whether
now existing or hereafter arising of Borrower or any other Loan Party to Lender arising
under or in connection with any Swap Agreements, all accrued and unpaid fees and all
expenses, reimbursements, indemnities and other obligations of Borrower or any other Loan
Party to Lender or any indemnified party arising under the Loan Documents, in each case
whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute or
contingent, joint or several, due or to become due, now existing or hereafter arising.

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

     “Outstanding Credit Exposure” means the aggregate principal amount of Advances
outstanding at such time.

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

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

     “Permitted Exceptions” means:

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

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

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

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

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

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

     “Permitted Investments” means (a) any Investment in direct obligations of
United States of America or any agency thereof, or obligations guaranteed by the United
States of America or any agency thereof, provided that such obligations mature
within one year after the date of acquisition thereof; (b) Investment in commercial paper
rated in the

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

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

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

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

     “Prime Rate” means the rate of interest per annum publicly announced from time
to time by TCF National Bank as its prime rate; provided, that for the purposes of this
Agreement, the Prime Rate shall never be less than the Adjusted One Month LIBO Rate. Each
change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective. The Prime Rate is a reference rate and is not
necessarily the lowest rate.

     “Project Borrower” means, collectively, one or more wholly-owned Subsidiaries
of COP III (and if applicable, the applicable Subsidiary of COP III) or CCPT III, including
each of the Initial Project Borrowers, that owns the fee interest (subject only to Permitted
Exceptions) in and to a Qualified Property and, except for an Initial Project Borrower,
that, with the consent of Lender, executes, as Project Borrower, a counterpart signature
page hereto together with a Borrower Assumption Agreement, subject to release as provided in
Sections 2.19(b) and 4.3.

     “Property” means all of that certain real property legally described in the
Mortgage Instruments.

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     “Protective Advance” means amounts advanced by a Lender to pay the following
amounts:

     (a) All reasonable out-of-pocket amounts that are necessary to protect
the validity, priority and enforceability of the Liens and Encumbrances in
favor of Lender arising pursuant to the Loan Documents (such amounts to
include, without limitation, payment of taxes, assessments and other Liens
and Encumbrances that may have a priority superior to the priority of the
Liens and Encumbrances of Lender on the Collateral); and

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

     “Qualified Dark Property” means an otherwise Qualified Property where one or
more of the Tenants previously occupying said Qualified Property has vacated said Qualified
Property, but said Qualified Property remains 100% leased (ignoring subleases) to a
Plus-Credit Tenant pursuant to a net Lease, said Tenant is current on payments, there are a
minimum of eight (8) years left on the Lease (exclusive of any extension options), such
Lease is free of any co-tenancy clauses, and such Tenant does not have any right to
terminate its Lease; provided, however, that a Qualified Dark Property shall only remain a
Qualified Dark Property for a period of six (6) months from the date that a Tenant at such
property first vacated or stopped doing business at the Property, and under no circumstances
shall a property be deemed a Qualified Dark Property at anytime beyond such six (6) months
period.

     “Qualified Property” means as defined in Section 4.2.

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

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

     “Repayment Guaranty” means the Loan and Continuing Guaranty now or hereafter
executed by Guarantor in favor of Lender, as such agreement may be amended, modified,
restated, renewed and supplemented from time to time.

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

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the Qualified Properties or the business or operations of Borrower or any Loan Party is bound, or (h) any judgment, order,
or decree of any arbitrator, other private adjudicator, or Governmental Authority to which
Borrower is a party or by which Borrower or any of the Qualified Property is bound.

     “Revolving Facility Termination Date” means December 16, 2012.

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

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

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

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

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

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

     “Tenant” means each tenant under a Lease.

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

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

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

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

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

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

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

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

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

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

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

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

     1.4 Construction. Unless the context of this Agreement clearly requires otherwise,
references to the plural include the singular and to the singular include the plural, references to
any gender include any other gender, the part includes the whole, the terms “include” and
“including” are not limiting, and the term “or” has, except where otherwise indicated, the

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

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

ARTICLE 2

COMMITMENT

     2.1 Commitment.

     (a) Right to Advances Generally. Lender agrees, on the terms and conditions
set forth in this Agreement, to make Advances to Borrower from time to time in amounts as
provided for herein. BORROWER ACKNOWLEDGES AND AGREES THAT THE ADVANCES TO BE MADE
HEREUNDER SHALL CONSIST OF THE AVAILABLE COMMITMENT ONLY AND, EXCEPT FOR THE AVAILABLE
COMMITMENT, LENDER SHALL HAVE NO OBLIGATION TO MAKE ADVANCES TO OR FOR THE BENEFIT OF
BORROWER OR ANY OTHER PERSON.

     (b) Revolving Nature of Commitment Through the Revolving Facility Termination
Date. Initially, the Commitment shall constitute a revolving line of credit and
Advances repaid may be reborrowed on a revolving basis through the Revolving Facility
Termination Date.

     (c) Termination of Revolving Nature of Commitment. On the first day after the
Revolving Facility Termination Date, the Commitment Amount shall be reduced from
$25,000,000.00 to $23,000,000.00 and the Commitment shall cease to be a revolving line of
credit, and instead shall be a fixed line of credit under which Advances repaid by
Borrower may not be reborrowed.

     (d) Although the principal balance of the outstanding Advances may be zero from time
to time, the Loan Documents will remain in full force and effect until

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all obligations of
Lender to make Advances expire and all Obligations are paid and performed in full. Upon
the occurrence and during the continuance of an Unmatured Event of Default, Lender shall
not be required to make any Advances and Lender may suspend its obligation to make
Advances. Upon the occurrence and during the continuance of an Event of Default, Lender
shall not be required to make any
Advances and Lender may suspend or terminate its obligation to make Advances. The
obligation of Borrower to repay Advances is evidenced by the Note

     (e) If, as of any determination date, the Debt Service Coverage Ratio is less than
1.60 to 1.0, no Advances shall be made until the Borrowing Base has been adjusted such
that the Debt Service Coverage Ratio is 1.60 to 1.0 or greater.

     2.2 Requests for Advances.

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

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

     (c) Making an Election. To make an election pursuant to this Section
2.2, COP III shall notify Lender of such election by telephone or electronic
transmission (including e-mail) (i) in the case of a Eurodollar Borrowing, not later than
2:00 p.m., Milwaukee, Wisconsin time, three (3) Business Days before the date of the
proposed Borrowing, or (ii) in the case of a Floating Rate Borrowing, not later than 2:00
p.m., Milwaukee, Wisconsin time, one (1) Business Day before the date of the proposed
Borrowing. Each such telephonic notice shall be irrevocable and shall be confirmed
promptly by electronic transmission (including e-mail), hand delivery or telecopy to
Lender of a written Interest Election Request signed by Borrower.

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

     (i) the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the

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information to be specified pursuant to clauses (ii) and (iii) below shall be
specified for each resulting Borrowing);

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

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

If any such Interest Election Request requests a Eurodollar Borrowing it will be deemed to
have specified an Interest Period of one month.

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

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

     2.3 Funding of New Advances. Lender shall make each Advance to be made hereunder on
the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., Milwaukee,
Wisconsin time, to the account of Borrower most recently designated by it for such purpose by
notice to the Lender. Subject to the restrictions set forth in this Agreement, Lender will make
such Advances available to Borrower by promptly (but in no event later than 2:00 p.m., Milwaukee,
Wisconsin time) crediting the amounts so received, in like funds, to an account of Borrower
maintained with Lender and designated in writing by COP III.

     2.4 Prepayment of Advances; Termination and Reductions of Commitments.

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

     (b) Method of Prepayment. COP III shall notify Lender by telephone
(confirmed by telecopy) or electronic transmission (including e-mail) of any prepayment
hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 1:00
p.m., Milwaukee, Wisconsin, time, three (3) Business Days before the date of prepayment,
or (ii) in the case of prepayment of a Floating Rate Borrowing, not later than 1:00 p.m.,
Milwaukee, Wisconsin, time, on the date of prepayment. Each

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

     (c) Borrower may at any time terminate, without premium or penalty (other than, with
respect to Eurodollar Borrowings, payments that may become due under Section
2.8), the Commitment upon (i) the payment in full of all outstanding Loans, together
with accrued and unpaid interest thereon, (ii) the payment in full of the accrued and
unpaid fees and (iii) the payment in full of all reimbursable expenses and other
Obligations together with accrued and unpaid interest thereon. Borrower may from time to
time reduce, without premium or penalty (other than, with respect to Eurodollar
Borrowings, payments that may become due under Section 2.8), the Commitment,
provided that Borrower shall not reduce the Commitment if, after giving effect to any
concurrent prepayment of the Advances in accordance with this Section 2.4 and any
Remargining Payment pursuant to Section 2.20, the Outstanding Credit Exposure
would exceed the Available Commitment. Any termination or reduction of the Commitment
shall be permanent. Borrower shall notify the Lender of any election to terminate or
reduce the Commitment under this paragraph at least three (3) Business Days prior to the
effective date of such termination or reduction, specifying such election and the
effective date thereof. Any notice of termination or reduction of the Commitment
delivered by COP III may state that such notice is conditioned upon the effectiveness of
other credit facilities or the receipt of the proceeds from the issuance of other
Indebtedness or any other event, in which case such notice may be revoked by COP III (by
notice to the Lender on or prior to the specified effective date) if such condition is
not satisfied.

     2.5 Interest.

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

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

     (c) Default Interest Rate. Notwithstanding the foregoing, if any principal
of or interest on any Advance or any fee or other amount payable by Borrower hereunder is
not paid when due, whether at stated maturity, upon acceleration or otherwise and such
failure constitutes an Event of Default, such overdue amount shall bear interest during
the continuance of such Event of Default, commencing as the date of such Event of
Default, after as well as before judgment, at a rate per annum (the “Default Interest
Rate”) equal to (i) in the case of overdue principal or interest of any Advance, 2%
plus the rate otherwise applicable to such Advance as provided in the preceding
paragraphs of this Section, or (ii) in the case of any other amount, 2% plus the rate
applicable to Floating Rate Borrowings as provided in Section 2.5(a).

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     (d) Minimum Interest Rate. Notwithstanding anything to the contrary in this
Agreement, under no circumstances shall the Interest Rate ever be less than 4.5% or more
than the Highest Lawful Rate.

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

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

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

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

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

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

then Lender shall give notice thereof to Borrower by telephone or telecopy as promptly as
practicable thereafter and, until Lender notifies Borrower that the circumstances giving rise to
such notice no longer exist, (i) any Interest Election Request that requests the conversion of any
Eurodollar Borrowing to or continuation of any Eurodollar Borrowing as such shall be

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ineffective,
and (ii) any request for a new Eurodollar Borrowing shall be made as a Floating Rate Borrowing.

     2.7 Increased Costs.

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

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

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

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

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

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

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

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

     2.9 Reserved.

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

     2.11 Taxes.

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

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

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     (c) Tax Indemnity.

     (i) Borrower shall indemnify Lender for the full amount of any Taxes paid by
Lender on or with respect to any payment by or on account of any obligation of
Borrower hereunder and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate
as to the amount of such payment or liability delivered to Borrower by Lender shall
be conclusive absent manifest error. Notwithstanding anything contained in this
Section 2.11 or any Loan Document, in no event shall Borrower be required to
indemnify any Person for Excluded Taxes.

     (ii) Without limiting the provisions of subsection (a) or (b) above, Lender
shall, and does hereby, indemnify the Borrower and shall make payment in respect
thereof within 10 days after demand therefor, against any and all Taxes and any and
all related losses, claims, liabilities, penalties, interest and expenses (including
the fees, charges and disbursements of any counsel for the Borrower or the Lender)
incurred by or asserted against the Borrower by any Governmental Authority as a
result of the failure by Lender to deliver, or as a result of the inaccuracy,
inadequacy or deficiency of, any documentation specified in subsection 2.11(e)(ii)(A
and B). The agreements in this clause (ii) shall survive any assignment of rights
by Lender, the termination of the Commitment and the repayment, satisfaction or
discharge of all other Obligations.

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

     (e) Status of Lenders; Tax Documentation.

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

     (ii) Without limiting the generality of the foregoing,

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     (A) If Lender is a “United States person” within the meaning of Section 7701(a)(30) of the
Code, Lender shall deliver to the Borrower an executed original of Internal Revenue Service Form
W-9; and

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

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

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

     2.12 Repayment; Evidence of Debt.

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

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

     (c) Reserved.

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

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

     2.13 Maximum Interest Rate.

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

     (b) If, for any reason, Lender receives anything of value as interest or anything
deemed interest by applicable law under this Agreement or any of the other Loan Documents
or otherwise that results in Lender receiving interest in an amount in excess of the
Highest Lawful Rate, the amount of such excess shall be applied to the reduction of the
principal amount owing hereunder or on account of any other Indebtedness of Borrower
owing to Lender, and not to the payment of interest. If the
amount of such excess exceeds the unpaid principal balance of all Indebtedness of
Borrower owing to Lender, such amount shall be refunded to Borrower.

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

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

     2.14 Fees.

     (a) Commitment Fee. Borrower agrees to pay the Commitment Fee to Lender on
or before the Effective Date.

     (b) Cancellation Fee. Borrower may cancel the Commitment provided that
Borrower pays the Cancellation Fee described herein. If Borrower cancels the Commitment
at any time prior to the Revolving Facility Termination Date, Borrower shall pay a
cancellation fee equal to 2% of the Commitment Amount (the “Cancellation Fee”).
Thereafter until the Maturity Date, the Cancellation Fee of 2% of the Commitment Amount
shall be reduced by 25 basis points for each quarter in which the Commitment has remained
open after the Revolving Facility Termination Date. For purposes of illustration, in the
event Borrower cancels the Commitment during the 46th month of the Facility term, the
Cancellation Fee would be 1.25% of the Facility Amount (2% less 75 basis points which
represents a 25 basis point reduction for months 37-39, 40-42, and 43-45 in which the
Commitment remained open). This Cancellation Fee shall be charged in lieu of the Unused
Fee described below at the time of Borrower’s cancellation of the Commitment.

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

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

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

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

     2.15 General Provisions as to Payments.

     (a) Payments Generally. Borrower shall make each payment required to be
made by it hereunder (whether of principal, interest or fees) prior to 1:00 p.m.,
Milwaukee, Wisconsin time, on the date when due, in immediately available funds, without
set-off or counterclaim. Any amounts received after such time on any date may, in the
discretion of Lender, be deemed to have been received on the next succeeding Business Day
for purposes of calculating interest thereon. All such payments shall be made to Lender
at its offices in Milwaukee, Wisconsin, except that payments pursuant to Sections
2.11 and 9.12 shall be made directly to the Persons entitled thereto. Lender
shall distribute any such payments received by it for the account of any other Person to
the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended
to the next succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
hereunder shall be made in U.S. dollars.

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

     (c) Reserved.

     (d) Reserved.

     2.16 Advances.

     (a) Method for Advances. Subject to the terms and conditions set forth in
this Agreement and further subject to the Available Commitment, Advances shall be made by
Lender at the request of the Person or Persons designated by Borrower from time to time
on Lender’s form of signature authorization in accordance with Section 2.2;
provided, however, that Lender shall have acknowledged receipt of any changes in the
Person or Persons designated by Borrower, and such Person or Persons designated by
Borrower will have executed a new signature authorization form. Subject to Section
2.1 and the other terms and conditions of this Agreement (including those hereinafter
set forth), such Person or Persons are hereby authorized by Borrower to request Advances
(subject to the limitations in this Agreement) not more frequently

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than one (1) time per
day, and to direct the disposition of the proceeds of Advances until written notice of
the revocation of such authority is received from Borrower by Lender and Lender has had a
reasonable time to act upon such notice. Lender has no duty to monitor for Borrower, or
to report to any such Person, the use of proceeds of Advances.

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

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

     2.17 Costs and Expenses.

     (a) Costs and Expenses. Borrower shall pay to Lender on demand all
reasonable out-of-pocket costs, expenses, and fees of Lender arising in connection with
the Commitment (including, without limitation, reasonable fees and expenses for
outside attorneys, consultants, inspectors and other professional advisers, paralegals,
document clerks and specialists, and costs and expenses of market studies, absorption
studies, appraisals, appraisal review, title review, title insurance, surveys,
environmental assessments, environmental testing, environmental cleanup, other
inspection, processing, title, filing, and recording costs, expenses, and fees and
Protective Advances): (i) in the negotiation, documentation, execution, delivery and
modification of the Loan Documents; (ii) in inspecting the Eligible Collateral; (iii) in
enforcement of the Loan Documents and the exercise of the rights and remedies of Lender
thereunder; (iv) in defense of the legality, validity, binding nature and enforceability
of the Loan Documents; and (v) in preparing for the foregoing, whether or not any legal
proceeding is brought or other action is taken. Such costs, expenses, and fees will
include, without limitation, all such reasonable out-of-pocket costs, expenses, and fees
incurred in connection with any court proceedings (whether at the trial or appellate
level).

     (b) Failure to Pay. If any costs, expenses and fees or any other costs,
expenses and fees from time to time due under the Loan Documents are not paid within ten
(10) days after written demand by Lender, Borrower agrees to pay interest on such costs,
expenses, and fees at the Default Interest Rate from the date incurred until paid in
full. In addition, if such costs, expenses and fees are not paid within such

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ten (10)
day period, Lender may cause Advances to be made to pay such costs, expenses and fees,
whether or not such Advance has been requested and whether or not the conditions
precedent to an Advance have been satisfied.

     2.18 Mitigation Obligations; Termination of Commitment.

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

     (b) Termination of Commitment. If Lender requests compensation under
Section 2.7, or if Lender defaults in its obligation to fund Advances hereunder,
Borrower may at any time terminate, without premium or penalty (other than, with respect
to Eurodollar Borrowings, payments that may become due under Section 2.8), the
Commitment in accordance with Section 2.4(c) and no Cancellation Fee shall be
payable in connection therewith.

     2.19 Releases of Collateral and Project Borrowers. In connection with any removal of
Qualified Properties pursuant to Section 4.3(ii), Lender shall release such Collateral from the
Liens under any Loan Document, and the related Project Borrower, if each of the following
conditions precedent is satisfied:

     (a) Generally. With respect to all releases:

     (i) Notification to Lender. COP III or the closing agent handling the
sale shall have notified Lender in writing of the Collateral to be released.

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

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

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

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     (v) Processing/Release Fees and Costs. Borrower shall have paid (1) the
Collateral Change Fee, (2) Lender’s reasonable out-of-pocket costs incurred by Lender
in connection with such release, and (3) to the extent applicable, any fees owed to a
trustee under the Mortgage Instruments.

     (vi) Escrow Arrangements. Each release shall be made by Lender by
delivery of the release documents to Title Company upon satisfaction of the
conditions precedent to such release pursuant to this Section 2.19(a).

     (b) Project Borrower. Upon satisfaction of the conditions precedent
contained in this Section 2.19, the Project Borrower that owns the Qualified
Property that is being released from the Collateral shall also be released from its
obligations under each Loan Document to which such Project Borrower is a party and shall
cease to be a “Project Borrower” and a “Loan Party” unless such Project Borrower owns
other Qualified Property included in the remaining Collateral.

     (c) Intentionally Omitted.

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

     2.20 Remargining.

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

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

     (c) Payments.

     (i) If for any reason at any time, the Outstanding Credit Exposure exceeds the
Available Commitment (including, without limitation, by reason of Commitment Amount
reductions, changes in Appraised Values of Qualified Properties relating to
Appraisals delivered to Lender, exclusion of Eligible Collateral, adjustments to the
Borrowing Base or the Borrowing Base Value in accordance with this Agreement),
Borrower shall be obligated to make a payment equal to the amount of such excess
(each payment, a “Remargining Payment”); provided, however, if such excess is
due to the removal of a Disqualified Property from the Borrowing Base, no Remargining
Payment will be required unless Borrower fails to eliminate such excess within 30
days after Borrower’s receipt of written notice from Lender pursuant to Section
2.20(d); and no Advances shall made until Borrower has eliminated such excess.

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     (d) Due Date. Except as provided in clause (c) above, each payment
pursuant to this Section 2.20 will be due no later than 1:00 p.m. (Milwaukee,
Wisconsin time) on the Business Day after the Business Day upon which Lender notifies
Borrower (which notice shall be given by facsimile or in writing) that such Remargining
Payment is required.

ARTICLE 3

BORROWING BASE

     3.1 Determination of Borrowing Base. Subject to the limitations and adjustments set
forth in this Article 3, the “Borrowing Base” shall equal the sum of the Borrowing
Base Value allocated to each of the Qualified Properties comprising Eligible Collateral. As used
herein, “Borrowing Base Value” means, with respect to each Qualified Property comprising
Eligible Collateral, the lesser of (i) (a) fifty percent (50%) of the Appraised Value of such
Qualified Property, or (b) fifty percent (50%) of the Acquisition Costs of such Qualified Property,
or (ii) Ten Million and No/100 Dollars ($10,000,000.00).

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

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

     (i) The Debt Yield shall equal or exceed 14%;

     (ii) The Debt Service Coverage Ratio shall be 1.60 to 1.0 or greater;

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

     (iv) The aggregate Borrowing Base Value of the Qualified Properties comprising
Eligible Collateral occupied by Plus-Credit Tenants pursuant to a Lease shall
comprise no less than seventy-five percent (75%) of the Borrowing Base; and

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

     (b) Additional Limitations on Borrowing Base. If any of the limitations on
the Borrowing Base set forth in this Agreement are exceeded, Lender may in its reasonable
discretion either remove otherwise Qualified Properties from Eligible Collateral until
such limitations are met, reasonably adjust the applicable Borrowing Base Values in order
that such limitations are not exceeded, or require Borrower to make a Remargining
Payment.

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

     3.4 Borrowing Base Reports and Collateral Certificates.

     (a) Borrowing Base Report and Collateral Certificate. On or before 15 days
after the end of each fiscal quarter, Borrower will prepare and submit to Lender a
proposed Borrowing Base Report and Collateral Certificate for all of the Eligible
Collateral. Such Borrowing Base Report and Collateral Certificate will be
substantially in the form of the Borrowing Base Report and Collateral Certificate
attached as Exhibit F. With respect to the Eligible Collateral, each Borrowing
Base Report and Collateral Certificate will also take into account the adjustments and
limitations permitted or required by this Agreement.

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

     (c) Approval of Borrowing Base Report. Each proposed Borrowing Base Report
and Collateral Certificate shall be subject to approval and adjustment by Lender, in its
reasonable discretion, based upon (i) Lender’s review of such report, and (ii) such other
information as Lender may reasonably require in order to verify the Borrowing Base,
Eligible Collateral, the Borrowing Base Values, and all other amounts and items relating
thereto. Each determination by Lender of the Borrowing Base, Eligible Collateral, the
Borrowing Base Values, and the amount of each Advance (and all other amounts and items
entering into such determinations), will be final, conclusive and binding upon Borrower,
absent manifest error. If Lender rejects a Borrowing Base Report and Collateral
Certificate, Borrower shall make such revisions and adjustments to the proposed Borrowing
Base Report and Collateral Certificate as Lender may reasonably request. Lender will use
reasonable efforts to review each Borrowing Base Report and Collateral Certificate and
make any adjustments or provide approval within three (3) Business Days after receipt of
each Borrowing Base Report and Collateral Certificate that complies with the requirements
of this Section 3.4, provided that Lender’s failure to give such notice or delay
in giving such notice shall not limit, waive or reduce any of the Obligations.

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

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

     3.6 Appraisals.

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

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

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

     (d) Additional Appraisals. Notwithstanding anything in this Section
3.6 to the contrary, Lender may order updated Appraisals (i) if such Appraisals are
required by any laws, rules, regulations or generally applicable appraisal policies and
lending procedures of Lender, (ii) if an Event of Default by Borrower or any other Loan
Party has occurred and is continuing, or (iii) if Lender deems such Appraisals to be
necessary based upon changes in land values or other market conditions; provided,

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however, Lender may only order an updated Appraisal pursuant to this clause (iii) one (1)
time per calendar year per Qualified Property. Borrower shall pay the reasonable
out-of-pocket cost and expense of all Appraisals obtained by Lender, in accordance with
this clause (d).

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

ARTICLE 4

CONDITIONS PRECEDENT

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

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

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

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

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

     (i) Loan Documents. The Loan Documents, including, without limitation,
Certifications of Non-Foreign Status and such other documents as reasonably required
by Lender;

     (ii) Formation Documents. Borrower shall have provided Lender and
Lender shall have reasonably approved (a) the Formation Documents of Borrower and
each other Loan Party, together with such resolutions, consents and other

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documents as Lender may reasonably require to evidence the due formation, valid existence and
authority of Borrower and each other Loan Party, and (b) Certificates of Good
Standing issued by the applicable State office for Borrower and each other Loan
Party;

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

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

     (e) Payment of Costs, Expenses and Fees. Payment of all costs, expenses and
fees to be paid by Borrower or any Loan Party under the Loan Documents on or before the
Effective Date shall have been paid in full.

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

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

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

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

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

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

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

     (m) Environmental Reports. Lender shall have received an environmental
report with respect to each Qualified Property included in Eligible Collateral prepared
by an environmental consultant reasonably acceptable to Lender. Each such
environmental report shall be approved by Lender in Lender’s sole but reasonable
discretion.

     (n) Mortgage Instruments; Title Policy. Lender shall have received each
Mortgage Instrument required to encumber each Qualified Property included in Eligible
Collateral, which Mortgage Instrument shall have been duly executed and delivered by the
applicable Project Borrower, granting Lender a first priority lien thereon, subject to
Permitted Exceptions, and Lender shall have received a commitment from Title Company to
issue the Title Policy.

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

     (p) Appraisal. Lender shall have received a current Appraisal of each
Qualified Property included in Eligible Collateral that is acceptable to Lender in
Lender’s sole but reasonable discretion.

     (q) Searches. Lender shall have obtained current UCC, tax and judgment
searches made in such places as Lender may reasonably specify, covering COP III and
Project Borrowers and showing no filings relating to, or which could relate to, the
Qualified Properties other than those made hereunder.

     (r) Insurance. Lender shall have received from Borrower and Guarantor
evidence of the policies of insurance required by this Agreement and the other Loan
Documents.

     (s) Financial Statements. Lender shall have received the most recent
available financial statements of COP III and CCPT III.

     (t) IRS Forms. With respect to COP III and Project Borrowers, a signed IRS
Form W-8 or W-9, as applicable.

     (u) Opinion Letter. A legal opinion or opinions from counsel for Borrower
and the Project Borrowers, in form and substance reasonably acceptable to Lender and
Lender’s counsel.

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     (v) Other Items. Borrower shall have provided Lender with such other
agreements, documents and instruments as Lender may reasonably require.

     (w) Other Actions. Borrower has performed such other actions as Lender may
reasonably require.

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

     (a) The property shall be 100% occupied by a single Tenant which is currently paying
rent, or the property is a Qualified Dark Property;

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

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

     (d) At all times, a tenant shall lease (and if not a Qualified Dark Property,
occupy) the property pursuant to an executed net lease with a minimum remaining lease
term of eight (8) years, exclusive of any extension options and free of any co-tenancy
clauses.

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

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

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

     (h) With respect to each property, Lender has conducted and approved any due
diligence it deems reasonably necessary, including but not limited to, appraisals,
environmental reviews, property inspections, title report reviews, plat/survey reviews,
physical condition reports, Lease reviews, Formation Document reviews and any other due
diligence reviews contemplated by Section 4.1 above; and

     (i) Lender otherwise approves the property as a Qualified Property hereunder in its
sole but reasonable discretion.

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     4.3 Addition and Removal of Qualified Properties and Project Borrowers. After the
Effective Date of this Agreement, but only upon satisfaction of all the conditions set forth in
Section 4.1 and Section 4.2 with respect to any additional properties and Project
Borrowers, and subject to Lender’s approval thereof, Borrower shall have the right to (i) add one
or more properties to the pool of Qualified Properties upon which the Eligible Collateral and
Borrowing Base is determined that conform to the attributes of a Qualified Property set forth in
Section 4.2, so long as the applicable Project Borrower executes and delivers to Lender a
Mortgage Instrument, Borrower Assumption Agreement and Environmental Agreement, and (ii) remove one
or more properties from the pool of Qualified Properties upon which the Eligible Collateral and
Borrowing Base is determined, and the Mortgage Instruments encumbering said removed properties
shall be released so long as, after giving effect to such release and any payment by Borrower of
any Remargining Payment, the then Outstanding Credit Exposure is less than or equal to the
Available Commitment.

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

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

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

     (c) Mortgage Instrument. Such Eligible Collateral shall be encumbered by a
first lien Mortgage Instrument in favor of Lender, subject only to Permitted Exceptions.

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

     (e) Draw Request. COP III will have delivered to Lender a Draw Request for
such Advance.

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

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

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ARTICLE 5

BORROWER REPRESENTATIONS AND WARRANTIES

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

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

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

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

     (d) Execution and Delivery and Binding Nature of Loan Documents. The Loan
Documents are legal, valid and binding obligations of Borrower, enforceable in

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

     (e) Accurate Information. All information in any loan application,
financial statement (other than financial projections), certificate or other document,
and all other information delivered by or on behalf of Borrower or any other Loan Party
to Lender in connection with the Commitment is true, correct and complete in all material
respects, and there are no omissions from any such information that results in any such
information being materially incomplete, incorrect or misleading. Borrower does not have
any knowledge of any material change in any such information. All financial statements
(other than financial projections) heretofore delivered to Lender by Borrower or any Loan
Party were prepared in accordance with the requirements in this Agreement and accurately
present the financial conditions and results of operations as at the dates thereof and
for the periods covered thereby in all material respects. All financial projections have
been and will be prepared in accordance with the requirements of this Agreement, will be
based on the applicable Person’s best good faith estimates, compiled and prepared with
due diligence, of the matters set forth therein. Since June 30, 2009 and as of the
Effective Date, no Material Adverse Change has occurred.

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

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

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

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

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

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

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

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

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

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

     (iii) Except for liabilities to make contributions and to pay Pension Benefit
Guaranty Corporation (or any successor thereto) (“PBGC”) premiums and
administrative costs, neither Borrower nor any ERISA Affiliate of Borrower has
incurred any material liability to or on account of any Plan under applicable
provisions of ERISA, the Code or applicable foreign law, and no condition exists

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which presents a material risk to Borrower or any ERISA Affiliate of Borrower of
incurring any such liability, in each case to the extent such liability would result
in a Material Adverse Change. No domestic Plan has an “accumulated funding
deficiency” (within the meaning of Section 412 of the Code), whether or not waived,
and no foreign Plan is in violation of any funding requirements imposed by applicable
foreign law. None of Borrower, any ERISA Affiliate of Borrower, the PBGC or any
other Person has instituted any proceedings or taken any other action to terminate
any Plan.

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

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

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

     (l) Compliance With Law. None of Borrower, any Loan Party, any Qualified
Property or any other Collateral is in violation of any law, ordinance, regulation or
rule (federal, state, or local) to the extent such violation would result in a Material
Adverse Change.

     (m) Representations and Warranties Relating to Collateral.

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

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

     (iii) Validity of the Lien and Encumbrance Created by the Mortgage
Instruments. The Lien and Encumbrance created by the Mortgage Instruments is
(A) legal, valid, binding and enforceable, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization or similar laws and

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by equitable principles of general application, and (B) is first priority,
except for Permitted Exceptions (other than Permitted Exceptions that are required to
be subordinated to the Mortgage Instruments).

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

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

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

     (o) Governmental Regulation. None of the Loan Parties is required to be
registered as an “investment company” under the Investment Company Act of 1940.

     (p) Benefit. Each Loan Party: (i) operates in conjunction with the other
separate but affiliated Loan Parties with respect to their respective operations; and, in
this regard, each Loan Party is benefited by operating with the other Loan Parties
because of greater operating efficiencies, economies of scale, coordination, and

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centralization of market presence, and common business functions, including, but not
limited to, accounting services for consolidated financial statements; (ii) expressly
acknowledges and agrees with all of the other Loan Parties, and expressly represents and
confirms to Lender, that each Loan Party receives a reasonably equivalent value in
exchange for permitting its funds to be applied to the Obligations under this Agreement;
(iii) agrees that each and all of the Loan Parties sought financing collectively because
they cannot obtain financing in the amount of the Commitment or otherwise under terms as
advantageous as those of this Agreement if each Loan Party tried instead to obtain
stand-alone financing individually and each Loan Party acknowledges that, while the Loan
Parties are separate and distinct corporate entities, they have asked Lender to recognize
their common business purpose and collective assets as part of the underwriting
considerations, so that they can qualify collectively for the greatest available amount
of financing and are each benefited by the greater borrowing capacity; (iv) expressly
agrees with each other, and expressly represents and confirms to Lender, that each and
all of the Loan Parties have received the benefit of such greater borrowing capacity
resulting from their common business enterprise; (v) agrees in requesting the Commitment,
and for purposes of the Commitment, the Loan Parties have presented to Lender, and have
asked Lender to rely, in part, on consolidated financial statements; (vi) acknowledges
and agrees that the proceeds of the Advances and the Letters of Credit are available to
each and all of the Loan Parties, and that the agreed distribution of the proceeds will
be decided by the Loan Parties collectively and among themselves; (vii) agrees that the
availability of the proceeds of Advances and the agreed use thereof (subject to the
requirements of this Agreement) decided by the Loan Parties among themselves are
essential to and will materially benefit each Loan Party on an individual and collective
basis; (xii) agrees that the Loan Parties have expressly agreed among themselves to
compile and maintain a single, collective Borrowing Base to be certified to Lender for
purposes of requests by Borrower for Advances and Letters of Credit. Each Project
Borrower is a wholly-owned Subsidiary of COP III (either directly and/or indirectly
through a wholly-owned Subsidiary of COP III) or CCPT III.

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

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

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

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

     5.4 Nature of Representations and Warranties. All representations and warranties made
in this Agreement or in any other Loan Document or in any certificate or other document delivered
to Lender pursuant to or in connection with this Agreement shall be deemed to have been relied upon
by Lender notwithstanding any investigation heretofore or hereafter made by Lender, or on their
behalf.

ARTICLE 6

AFFIRMATIVE COVENANTS

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

     6.1 Corporate Existence. COP III agrees that COP III shall continue to be a limited
partnership validly existing, and in good standing under the laws of the State of Delaware. COP
III shall cause each other Loan Party to continue to be an entity validly existing and in good
standing under the laws of the State of its formation.

     6.2 Books and Records; Access. Borrower agrees that Borrower will maintain a complete
and accurate set of books and records of its assets, business, financial condition, operations,
prospects and results of operation in accordance with GAAP. Borrower also agrees to maintain
complete and accurate records regarding the acquisition, development and operation of the Qualified
Properties, including, without limitation, all notices, records, documents and instruments related
to the Leases. Borrower also agrees that books and records required to be maintained by Borrower
pursuant to this Section 6.2 shall be maintained for a period of time following payment in
full of Borrower’s Obligations at least equal to the statute of limitations period within which
Lender would be entitled to commence an action with respect to the Obligations. During normal
business hours upon reasonable advance notice and subject to the rights of the Tenants under the
Leases, Borrower will give representatives of Lender access to

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the Collateral and Borrower’s books, records and documents relating to the Collateral and will
permit such representatives to inspect such Collateral and to audit, copy, examine and make
excerpts from such books, records and documents; provided, however, such visits shall (a) not occur
when any independent auditors are conducting an audit of any member of the Consolidated Group, (b)
not disrupt the operations of any Tenant and (c) be limited to no more than once in any calendar
year unless an Event of Default has occurred and is continuing. Upon reasonable request by Lender,
Borrower will also provide Lender with copies of the reports, documents, agreements and other
instruments described in this Section 6.2.

     6.3 Covenants Relating to Collateral. Borrower agrees:

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

     (b) No Encumbrances. Neither COP III nor any Project Borrower shall sell,
assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge
or otherwise encumber, any of the Collateral or any interest therein, except for (i) the
Permitted Exceptions, and (ii) sales and transfers in connection with releases permitted
pursuant to Section 2.19 and Section 4.3.

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

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

     (e) Flood Insurance. Unless flood insurance acceptable to Lender will first
have been obtained, no Qualified Property will be located in an area that has been

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identified by the Secretary of Housing and Urban Development as an area having
special flood hazards and in which flood insurance has been made available under the
National Flood Insurance Act of 1968.

     (f) Compliance with Permitted Exceptions. All restrictive covenants,
development agreements, easements and other agreements with Governmental Authorities and
other Persons that are necessary or desirable for the use and occupancy of the Qualified
Properties will be kept and maintained in full force and effect. Neither COP III nor any
Project Borrower shall default in any material respect under any such covenants,
development agreements, easements and other agreements, and rights thereunder will be
diligently enforced.

     (g) Reserved.

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

     6.4 Information and Statements. Borrower will furnish the following information and
statements to Lender:

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

     (b) Annual Statements — CCPT III. Within ninety (90) days after the close
of each Fiscal Year of CCPT III, unqualified, audited annual financial statements of the
Consolidated Group, certified and signed by the chief financial officer of CCPT III, and
audited by nationally recognized independent certified public accountants that are
reasonably acceptable to Lender, prepared in accordance with GAAP in each case on a

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consolidated basis, including balance sheets as of the end of such Fiscal Year and
statements of income and retained earnings and a statement of cash flows, and setting
forth in comparative form the balance sheet, income statement, retained earnings and cash
flow figures for the preceding Fiscal Year. Borrower and CCPT III shall be deemed to
have complied with the foregoing requirements, if CCPT III provides to Lender CCPT III’s
Form 10-K that is filed with the SEC within the time frame set forth above.

     (c) Quarterly Financial Statements — COP III. Within forty-five (45) days
after the close of each of the first three (3) quarterly periods of each Fiscal Year,
company-prepared financial statements for COP III on a consolidated basis, including
balance sheets as of the end of such period, statements of income and, with respect to
the consolidated financial statements only and retained earnings, in each case for the
portion of the Fiscal Year ending with such fiscal period, all certified and signed by
the chief financial officer of CCPT III, as general partner of COP III, and prepared in
accordance with GAAP. All consolidated balance sheets shall set forth in comparative
form figures for the preceding year end and the corresponding period in the preceding
Fiscal Year. All such income statements shall reflect year-to-date figures.

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

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

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

     (g) Compliance Information. All annual financial statements pursuant to
Section 6.4(a) and (b) and all quarterly financial statements pursuant to
Section 6.4(c)and (d) will also be accompanied by a Compliance
Certificate signed by the chief financial officer of the reporting entity, or its general
partner, as applicable and also

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certifying (i) that no Event of Default exists, (ii) to the amount of the Available
Commitment, and (iii) to the amount of the NOI for the immediately preceding calendar
quarter.

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

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

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

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

     6.7 Assets and Property. Borrower will maintain, keep, and preserve, or cause to be
maintained, kept and preserved, the Collateral in good working order and condition, ordinary wear
and tear excepted, in each case to the extent that failure to do so would result in a Material
Adverse Change.

     6.8 Casualty and Liability Insurance. Borrower, at its expense or the expense of the
applicable Tenant, shall maintain and deliver, or cause to be maintained and delivered, to Lender

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the policies of insurance set forth on Exhibit E attached hereto with respect to the
Collateral and the Project Borrowers. All such insurance policies shall (i) be issued by an
insurance company licensed or authorized to do business in the state where the property is located,
(ii) name “TCF National Bank, as Lender” as additional insureds on all liability insurance and as
mortgagee and loss payee on all ISO Special Form or All-Risk Property insurance, (iii) be endorsed
to show that Borrower’s insurance shall be primary and all insurance carried by Lender is strictly
excess and secondary and shall not contribute with Borrower’s insurance, (iv) provide that Lender
is to receive thirty (30) days written notice prior to non-renewal or cancellation, (v) be
evidenced by a certificate of insurance to be provided to Lender or such other form of document
customarily provided by the applicable Tenant, along with a copy of the policy for the ISO Special
Form or All-Risk Property coverage, (vi) include either policy or binder numbers on the Accord
form, and (vii) be in form and amounts as those policies described in Exhibit E or
otherwise reasonably acceptable to Lender.

     6.9 ERISA.

     (a) Borrower and the ERISA Affiliates each will take all actions and fulfill all
conditions necessary to maintain any and all Plans in substantial compliance with
applicable requirements of ERISA, the Code and applicable foreign law until such Plans
are terminated, and the liabilities thereof discharged, in accordance with applicable
law, in each case to the extent that the failure to do so would result in a Material
Adverse Change.

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

     (c) Borrower and the ERISA Affiliates each will take and fulfill all actions and
conditions necessary to maintain, and will maintain, substantial compliance of any and
all employee benefit plans established or maintained, or to which contributions are made
by Borrower and the ERISA Affiliates with the requirements of ERISA and the rules and
regulations adopted thereunder, in each case as in effect at the time and to the extent
that the failure to do so would result in a Material Adverse Change.

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

     6.10 Title Insurance. Lender may determine from time to time the allocation of title
insurance between parcels of Collateral, and the amount of title insurance coverage that Borrower
is required to provide pursuant to the Title Policy (in each case, not to exceed the Appraised
Value of the applicable Qualified Property), and Lender may enter into such agreements with Title
Company as Lender reasonably deems appropriate, including, without

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limitation, aggregation agreements, which shall contain such terms and conditions as Lender
may reasonably require.

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

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

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

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

     6.15 Reserved.

     6.16 Reserved.

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

     6.18 Financial Covenants. Borrower shall cause CCPT III to maintain the following:

     (a) Net Worth Requirement. As of the end of each fiscal quarter of CCPT III
commencing with the fiscal quarter ending September 30, 2009, Total Stockholders Equity
plus Redeemable Common Stock as reported on its 10-K or 10-Q SEC filings shall not be
less than $307,000,000 plus 75% of the Net Equity Contributions or sales of treasury
stock received by CCPT III after June 30, 2009.

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

     (c) Fixed Charge Coverage Requirement. As of the end of each fiscal quarter
of CCPT III commencing with the fiscal quarter ending September 30, 2009, the ratio of
EBITDA for the four (4) fiscal quarters ending on such date to Consolidated Debt Service
for the four (4) fiscal quarters ending on such date shall not be less than 1.50:1.00.

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

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

     6.19 Rights of Inspection; Correction of Defects.

     (a) Generally. Subject to the rights of the Tenants under the Leases,
Lender and its respective agents, employees and representatives will have the right to
enter upon the Qualified Properties included in Eligible Collateral, during normal
business hours upon advance written notice and, if requested by Borrower, accompanied by
representative of Borrower, in order to inspect such Qualified Properties; provided,
however, such visits shall (a) not occur when any independent auditors are conducting an
audit of any member of the Consolidated Group, (b) not disrupt the operations of any
Tenant and (c) be limited to no more than once in any calendar year unless an Event of
Default has occurred and is continuing. If Lender reasonably determines and notifies
Borrower in writing that any materials, work or Improvements do not conform with any
applicable Requirements or Laws, Borrower will promptly take such action to cause the
Qualified Properties to conform with such Requirements or Laws, to the extent failure to
conform therewith would result in a Material Adverse Change. Borrower shall reimburse
Lender on an annual basis for up to three inspections at a rate of $500 per inspection.

     (b) No Right to Rely. All inspections by Lender and other actions by Lender
in connection therewith are for the sole purpose of protecting the security of Lender and
are not to be construed as a representation by Lender that any of the materials, work or
Improvements are in compliance with any Requirements or Laws or otherwise free from
defect. No such inspections or review will limit any of the rights and remedies of
Lender pursuant to this Agreement or the other Loan Documents, including without
limitation, the right to require compliance with Section 6.19. Borrower may make
or cause to be made such other independent inspections as Borrower may desire for its own
protection.

     (c) Inspector(s). Lender may employ outside inspectors to perform some or
all of the inspection duties set forth in this Section 6.19 and may also elect to
have its

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own employees perform some or all of such inspection duties and review the reports
of outside inspectors.

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

     6.20 Notice of Default. Borrower shall immediately deliver to Lender any notices of
default that Borrower or any other Loan Party receives regarding a default by Borrower or any other
Loan Party with respect to any Indebtedness of Borrower or any other Loan Party in excess of the
Threshold Amount.

ARTICLE 7

BORROWER NEGATIVE COVENANTS

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

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

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

     7.3 Prohibition on Sales of Assets. Neither COP III nor any Project Borrower shall
convey, sell, lease, encumber, transfer or otherwise dispose of to any Person, in one transaction
or a series of transactions, all or substantially all of its business or property, including,
without limitation, the Collateral, except to (a) Lender under the Loan Documents, (b) Borrower or

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another Project Borrower, (c) Tenant pursuant to a Lease or (d) a third party in connection
with the removal of Qualified Properties and the release of the related Project Borrowers pursuant
to Sections 2.19 and 4.3. However, the restrictions in this Section 7.3 do not
preclude the Liens and Encumbrances created pursuant to and in accordance with this Agreement and
the other Loan Documents or securing Indebtedness permitted under this Agreement or another Loan
Document or the leasing of improvements located upon Qualified Properties in the ordinary course of
business and in compliance with the requirements of this Agreement.

     7.4 Prohibition on Amendments to Organizational Documents. Neither COP III nor any
Project Borrower shall amend, modify, restate, supplement, or terminate any Formation Document in
any manner that would adversely affect the rights of Lender in any material respect.

     7.5 Distributions. COP III shall not declare, make or pay any dividend or
distribution if such dividend or distribution would otherwise cause any Event of Default or if an
Event of Default has occurred and is continuing; provided, however, notwithstanding the foregoing,
COP III may make distributions in the amount necessary to maintain the tax status of CCPT III as a
real estate investment trust under Section 856 of the Code.

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

     7.7 Government Regulation. Neither COP III nor any Project Borrower shall (a) be or
become subject at any time to any law, regulation, or list of any government agency (including,
without limitation, the U.S. Office of Foreign Asset Control list) that prohibits or limits Lender
from making any Advance or extension of credit to Borrower or Project Borrowers or from otherwise
conducting business with COP III or Project Borrowers, or (b) fail to provide documentary and other
evidence of COP III’s or Project Borrowers’ identity as may be requested by Lender at any time to
enable Lender to verify COP III’s or Project Borrowers’ identity or to comply with any applicable
law or regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001, 31
U.S.C. Section 5318.

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     7.8 Investments. Neither COP III nor any Project Borrower shall directly or
indirectly make any Investment, except:

     (a) the Permitted Investments;

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

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

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

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

     (f) Investments existing on the date hereof;

     (g) Investments of any Person in existence at the time such Person becomes a Project
Borrower; provided such Investment was not made in connection with or anticipation of
such Person becoming a Subsidiary of COP III or CCPT III;

     (h) Subsidiaries may be established or created; and

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

     (i) Investments in real estate properties that have not been developed (and is
not under development) for any type of commercial, industrial, residential or other
income-generating use shall not at any time exceed an amount equal to 5% of CCPT
III’s Total Asset Value;

     (ii) the aggregate value of Investments in non-wholly owned general and limited
partnerships, joint ventures and other Persons which are not corporations (including
any such Investments in existence as of the date hereof) shall not constitute more
than 20% of CCPT III’s Total Asset Value;

     (iii) Investments in real estate properties under construction in progress shall
not at any time exceed an amount equal to 5% of CCPT III’s Total Asset Value; and

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

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

     7.9 Liens and Encumbrances. Except for (a) Permitted Exceptions, (b) Liens and
Encumbrances securing the Obligations, and (c) involuntary Liens and Encumbrances being contested
in a manner provided in paragraph (b)(i) through (iii) of the definition of “Permitted
Exceptions” or as otherwise permitted by the applicable Mortgage Instrument, neither COP III nor
any Project Borrower shall grant or suffer to exist any Lien or Encumbrance upon any Qualified
Properties included in Eligible Collateral.

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

     (a) the Obligations;

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

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

     (d) obligations (contingent or otherwise) of the Borrower or any Project Borrower
existing or arising under any Swap Contract, provided that (i) such obligations are (or
were) entered into by such Person in the ordinary course of business for the purpose of
directly mitigating risks associated with liabilities, commitments, investments, assets,
or property held or reasonably anticipated by such Person, or changes in the value of
securities issued by such Person, and not for purposes of speculation or taking a “market
view;” and (ii) such Swap Contract does not contain any provision exonerating the
non-defaulting party from its obligation to make payments on outstanding transactions to
the defaulting party;

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

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

ARTICLE 8

EVENTS OF DEFAULT

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

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

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

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

     (d) Borrower’s and/or any other Loan Party’s violation of any of the provisions of
Section 6.18 or Article 7, or any other of Borrower’s and/or any other
Loan Party’s financial covenants or negative covenants in this Agreement or in the other
Loan Documents;

     (e) Any representation or warranty by Borrower or any Loan Party in this Agreement
or in any of the other Loan Documents is, as of the date made, materially false,
incorrect, or misleading;

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

     (g) Borrower or any Loan Party (i) is unable or admits in writing its inability
generally to pay its monetary obligations as they become due; (ii) makes a general
assignment for the benefit of creditors; or (iii) applies for, consents to or acquiesces
in, the appointment of a trustee (other than a trustee under a deed of trust), receiver,
or other custodian for Borrower or any Loan Party or any material portion or

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all of the property of Borrower or any Loan Party, or, in the absence of such
application, consent or acquiescence by Borrower or any Loan Party, a trustee, receiver
or other custodian is appointed for Borrower or any Loan Party or any or all of the
property of Borrower or any Loan Party and such appointment continues undischarged or
unstayed for 90 days after the appointment thereof;

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

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

     (j) The filing of any foreclosure proceeding, giving notice of a trustee’s sale, or
any other action by any Person, other than Lender, to realize upon any of the Collateral
under any Lien or Encumbrance on any or all of the Collateral, regardless of whether such
Lien or Encumbrance is a Permitted Exception and regardless of whether junior or senior
to the applicable Mortgage Instrument; provided, however, such filing, giving of notice
or other action will not be an Event of Default (i) so long as Borrower or any Loan
Party, as applicable, is in good faith contesting such proceeding, sale or other action,
and such proceeding, sale or other action is stayed or dismissed within 90 days after the
commencement thereof or (ii) if the Collateral subject thereto is excluded from the
Borrowing Base and any resulting Remargining Payment is paid by Borrower within 90 days
after the commencement of such proceeding, sale or other action;

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

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

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     (m) The occurrence of a Change of Control;

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

     (o) Any default or “event of default” shall occur and be continuing (after
expiration of applicable notice and cure periods with respect thereto) under any recourse
Indebtedness of Borrower in an amount greater than the Threshold Amount;

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

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

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

     8.2 Remedies. Upon the occurrence of any Event of Default and at any time thereafter,
for so long as such Event of Default is continuing, the Lender may take any of the following
actions:

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

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

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

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

     8.3 Collateral Protection. Lender may, at any time, but will not be obligated to,
make Protective Advances which will be deemed to be Advances hereunder. All amounts so Advanced
will be added to the outstanding principal amount of all Advances.

     8.4 Secured by Collateral and Deed of Trust. Any Protective Advance will only occur
through Lender or at Lender’s direction and will not be funded directly to Borrower or any of its
Affiliates. Notwithstanding the foregoing, each Protective Advance and the charges, costs and
expenses, including reasonable attorneys’ fees, incurred or paid by Lender in exercising any right,
power or remedy conferred by this Agreement or any other Loan Document or in the enforcement
thereof or in the protection of the Collateral shall be charged to Borrower pursuant to Section
2.17. The amount of such Protective Advances shall be secured by the Mortgage Instruments.

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

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real property; and Borrower hereby waives the benefits of any “one-action rule” which may be
applicable to it or to any of the Collateral and waives marshaling of assets for itself and all
other parties claiming by, through or under it.

     8.6 Scheduled Payments. Lender and Borrower acknowledge that notwithstanding the
continuation of an Event of Default, Borrower may elect to continue to make scheduled payments.
Lender’s acceptance of any such payments shall not be a waiver of any rights and remedies, and
Lender shall continue to be entitled to all such rights and remedies (including, without
limitation, acceleration and foreclosure).

ARTICLE 9

MISCELLANEOUS

     9.1 Binding Effect; Assignments. The provisions of this Agreement shall be binding
upon and inure to the benefit of Borrower, Lender, and their respective successors and assigns
permitted hereby, except that (i) Borrower may not assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of Lender, which consent may be
withheld, conditioned or delayed in Lender’s sole and absolute discretion (and any attempted
assignment or transfer by Borrower without consent shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, the Affiliates of Lender)
any legal or equitable right, remedy or claim under or by reason of this Agreement. Lender is not
a joint venturer or a partner with Borrower. Lender may freely assign its rights and obligations
under this Agreement with the prior written consent of Borrower, which consent is not to be
unreasonably withheld, conditioned, or delayed; provided, however, no consent of Borrower shall be
required for an assignment to an Affiliate of Lender or if an Event of Default has occurred and is
continuing.

     9.2 Participations.

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

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

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

     9.3 Pledge by Lender. Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure obligations of Lender, including
without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided, however, that no such pledge or assignment of a security interest shall release Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for Lender as a
party hereto.

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

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

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

     9.7 CHOICE OF LAW. THIS AGREEMENT AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
THEREIN, THE OTHER LOAN DOCUMENTS, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND
THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF

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THE STATE OF ILLINOIS, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS RULES OF THE STATE OF
ILLINOIS.

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

     9.9 Notices and Demands.

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

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

     (ii) if to Lender, to it at TCF National Bank, 500 West Brown Deer Road, PO Box
170708, Milwaukee, Wisconsin 53217, Attention: Russell P. McMinn, Facsimile No. (414)
351-8680.

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

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

     9.10 Right of Set-Off. Borrower grants to Lender, without demand or notice to
Borrower but only if an Event of Default shall have occurred and be continuing, the right to
set-off and apply deposits (whether certificates of deposit, demand, general, savings, special,
time or other, and whether provisional or final) held by Lender for Borrower and any other
liabilities or other obligations of Lender to Borrower (“Borrower Deposits, Liabilities and
Obligations”) against or to the Obligations of Borrower, regardless of whether the Borrower
Deposits,

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Liabilities and Obligations are contingent, matured or unmatured, and Borrower grants a
security interest to Lender in the Borrower Deposits, Liabilities and Obligations to secure the
Obligations of Borrower under the Loan Documents.

     9.11 Waivers; Amendments.

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

     (b) Waivers and Amendments. No provision of this Agreement or any other
Loan Document may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by Borrower and Lender.

     (c) Reserved.

     9.12 Expenses; Indemnity; Damage Waiver.

     (a) Expenses and Indemnity. COP III and each Project Borrower shall,
jointly and severally, (a) indemnify, defend and hold harmless Lender, and its respective
Affiliates, and their respective officers, directors, employees, advisors and agents
(each, an “Indemnitee”) for, from and against any and all losses, claims, damages
and liabilities to which any such Indemnitee may become subject arising out of or in
connection with this Agreement, the other Loan Documents, the Commitment, the use of the
proceeds thereof or any related transaction or any claim, litigation, investigation or
proceeding relating to any of the foregoing, regardless of whether any Indemnitee is a
party thereto, and to reimburse each Indemnitee upon demand for any reasonable
out-of-pocket expenses incurred in connection with investigating or defending any of the
foregoing (including, without limitation, reasonable legal expenses); provided, however,
that the foregoing indemnity obligations will not, as to any Indemnitee, apply to losses,
claims, damages, liabilities or related expenses to the extent they are found by a final,
non-appealable judgment of a court to arise from the willful misconduct or gross
negligence of such Indemnitee, and (b) reimburse Lender, and its respective Affiliates,
on demand for all reasonable out-of-pocket expenses (including due diligence expenses,
appraisals, consultant’s fees and expenses, travel expenses, and reasonable fees, charges
and disbursements of counsel) incurred in

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connection with the Commitment and the Loan Documents, or incurred in connection
with the, amendment, modification, waiver or enforcement thereof.

     (b) Reserved.

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

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

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

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

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

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

     9.17 Counterpart Execution. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original and all of which together will constitute
one and the same document. Signature pages may be detached from the counterparts and attached to a
single copy of this Agreement to physically form one document. Facsimile

-69-

 

signature pages will be acceptable, provided originally signed signature pages are provided to
each of the other parties by overnight courier.

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

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

     9.20 Confidentiality.

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

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confidentiality of such Information as such Person would accord to its own confidential
information.

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

     9.21 Reserved.

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

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

ARTICLE 10

POWER OF ATTORNEY

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

-71-

 

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

ARTICLE 11

JURY WAIVER

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

[SIGNATURE PAGES FOLLOW]

-72-

 

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

	 	 	 	 	 
	BORROWER: 	COLE REIT III OPERATING PARTNERSHIP, LP, a Delaware limited partnership

BY: Cole Credit Property Trust III, Inc., a Maryland corporation, its General Partner

 	 
	 	By:  	/s/ D. Kirk McAllaster, Jr.
 	 
	 	 	Name:  	D. Kirk McAllaster, Jr. 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	COLE BB LAKEWOOD CO, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                              /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE CV LIBERTY MO, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                              /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE CV NOBLESVILLE IN, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                             /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE CV OAK FOREST IL, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                              /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	COLE KO BURNSVILLE MN, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                              /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE WG INDIANAPOLIS IN, LLC a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                               /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE WG GRAND JUNCTION CO, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                              /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE WG SOUTH BEND IN, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                              /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 
	 
	 	COLE ST IOWA CITY IA, LLC, a Delaware limited liability company

 	 
	 
	 	By:  	Cole REIT Advisors III, LLC, its Manager
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                             /s/ John M. Pons
 	 
	 	 	John M. Pons,  	 
	 	 	Executive Vice President 	 

-2-

 

	 	 	 	 	 

	 	 	 	 	 
	LENDER: 	TCF NATIONAL BANK, a national banking association

 	 
	 	By:  	/s/ Russell P. McMinn
 	 
	 	 	Name:  	Russell P. McMinn 	 
	 	 	Title:  	Sr. Vice President 	 
	 

-3-

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	ARTICLE 1 DEFINITIONS
	 	2
	 
	 	 
	1.1 Definitions
	 	2
	 
	 	 
	1.2 Accounting Terms and Determinations
	 	19
	 
	 	 
	1.3 Computation of Time Periods
	 	19
	 
	 	 
	1.4 Construction
	 	19
	 
	 	 
	1.5 No Presumption Against Any Party
	 	20
	 
	 	 
	ARTICLE 2 COMMITMENT
	 	20
	 
	 	 
	2.1 Commitment
	 	20
	 
	 	 
	2.2 Requests for Advances
	 	21
	 
	 	 
	2.3 Funding of New Advances
	 	22
	 
	 	 
	2.4 Prepayment of Advances
	 	22
	 
	 	 
	2.5 Interest
	 	23
	 
	 	 
	2.6 Alternate Rate of Interest
	 	24
	 
	 	 
	2.7 Increased Costs
	 	24
	 
	 	 
	2.8 Break Funding Payments
	 	25
	 
	 	 
	2.9 Reserved
	 	26
	 
	 	 
	2.10 Maturity of the Obligations
	 	26
	 
	 	 
	2.11 Taxes
	 	26
	 
	 	 
	2.12 Repayment; Evidence of Debt
	 	28
	 
	 	 
	2.13 Maximum Interest Rate
	 	29
	 
	 	 
	2.14 Fees
	 	30
	 
	 	 
	2.15 General Provisions as to Payments
	 	30
	 
	 	 
	2.16 Advances
	 	31
	 
	 	 
	2.17 Costs and Expenses
	 	32
	 
	 	 
	2.18 Mitigation Obligations; Termination of Commitment
	 	32
	 
	 	 
	2.19 Releases of Collateral and Project Borrowers
	 	33
	 
	 	 
	2.20 Remargining
	 	34
	 
	 	 
	ARTICLE 3 BORROWING BASE
	 	35
	 
	 	 
	3.1 Determination of Eligible Collateral/Borrowing Base
	 	35
	 
	 	 

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TABLE OF CONTENTS

(continued)

	 	 	 
	 	 	Page
	 
	 	 
	3.2 Adjustments to Borrowing Base; Additional Limitations on Borrowing Base
Values
	 	35
	 
	 	 
	3.3 Exclusions from Eligible Collateral
	 	35
	 
	 	 
	3.4 Borrowing Base Reports and Collateral Certificates
	 	36
	 
	 	 
	3.5 General
	 	37
	 
	 	 
	3.6 Appraisals
	 	37
	 
	 	 
	ARTICLE 4 CONDITIONS PRECEDENT
	 	38
	 
	 	 
	4.1 Conditions Precedent to Effectiveness of this Agreement
	 	38
	 
	 	 
	4.2 Qualification of Qualified Properties as Eligible Collateral
	 	40
	 
	 	 
	4.3 Addition and Removal of Qualified Properties and Project Borrowers
	 	41
	 
	 	 
	4.4 Additional Conditions Precedent to All Advances Against Eligible Collateral
	 	42
	 
	 	 
	4.5 Right to Waive
	 	42
	 
	 	 
	ARTICLE 5 BORROWER REPRESENTATIONS AND WARRANTIES
	 	42
	 
	 	 
	5.1 Representations and Warranties
	 	42
	 
	 	 
	5.2 Representations and Warranties Upon Requests for Advances
	 	48
	 
	 	 
	5.3 Representations and Warranties Upon Delivery of Financial Statements,
Documents, and Other Information
	 	48
	 
	 	 
	5.4 Nature of Representations and Warranties
	 	49
	 
	 	 
	ARTICLE 6 AFFIRMATIVE COVENANTS
	 	49
	 
	 	 
	6.1 Corporate Existence
	 	49
	 
	 	 
	6.2 Books and Records; Access
	 	49
	 
	 	 
	6.3 Covenants Relating to Collateral
	 	50
	 
	 	 
	6.4 Information and Statements
	 	51
	 
	 	 
	6.5 Law; Judgments; Material Agreements; Approvals and Permits
	 	53
	 
	 	 
	6.6 Impositions and Other Indebtedness
	 	53
	 
	 	 
	6.7 Assets and Property
	 	53
	 
	 	 
	6.8 Casualty and Liability Insurance
	 	53
	 
	 	 
	6.9 ERISA
	 	54
	 
	 	 
	6.10 Title Insurance
	 	54
	 
	 	 
	6.11 Use of Proceeds of Advances
	 	54
	 
	 	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 
	 	 	Page
	 
	 	 
	6.12 Further Assurances
	 	54
	 
	 	 
	6.13 Costs and Expenses of Borrower’s Performance of Covenants and
Satisfaction of Conditions
	 	55
	 
	 	 
	6.14 Notification of Certain Matters
	 	55
	 
	 	 
	6.15 Reserved
	 	55
	 
	 	 
	6.16 Reserved
	 	55
	 
	 	 
	6.17 Deposit Accounts
	 	55
	 
	 	 
	6.18 Financial Covenants
	 	55
	 
	 	 
	6.19 Rights of Inspection; Correction of Defects
	 	56
	 
	 	 
	6.20 Notice of Default
	 	57
	 
	 	 
	ARTICLE 7 BORROWER NEGATIVE COVENANTS
	 	57
	 
	 	 
	7.1 Fundamental Changes
	 	57
	 
	 	 
	7.2 Change in Ownership Interest in Project Borrowers
	 	57
	 
	 	 
	7.3 Prohibition on Sales of Assets
	 	57
	 
	 	 
	7.4 Prohibition on Amendments to Organizational Documents
	 	57
	 
	 	 
	7.5 Distributions
	 	58
	 
	 	 
	7.6 Transactions with Affiliates
	 	58
	 
	 	 
	7.7 Government Regulation
	 	58
	 
	 	 
	7.8 Investments
	 	59
	 
	 	 
	7.9 Liens and Encumbrances
	 	60
	 
	 	 
	7.10 Limitations on Indebtedness
	 	60
	 
	 	 
	ARTICLE 8 EVENTS OF DEFAULT
	 	61
	 
	 	 
	8.1 The occurrence of any of the following shall constitute an “Event of
Default” under the this Loan Agreement and the other Loan Documents:
	 	61
	 
	 	 
	8.2 Remedies
	 	63
	 
	 	 
	8.3 Collateral Protection
	 	64
	 
	 	 
	8.4 Secured by Collateral and Deed of Trust
	 	64
	 
	 	 
	8.5 Multiple Real and Personal Property Security
	 	64
	 
	 	 
	8.6 Scheduled Payments
	 	65
	 
	 	 
	ARTICLE 9 MISCELLANEOUS
	 	65
	 
	 	 
	9.1 Binding Effect; Assignments
	 	65
	 
	 	 

 -iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 
	 	 	Page
	 
	 	 
	9.2 Participations
	 	65
	 
	 	 
	9.3 Pledge by Lender
	 	66
	 
	 	 
	9.4 Survival
	 	66
	 
	 	 
	9.5 Integration; Entire Agreement
	 	66
	 
	 	 
	9.6 Severability
	 	66
	 
	 	 
	9.7 CHOICE OF LAW
	 	66
	 
	 	 
	9.8 Time of Essence; Time for Performance
	 	67
	 
	 	 
	9.9 Notices and Demands
	 	67
	 
	 	 
	9.10 Right of Set-Off
	 	67
	 
	 	 
	9.11 Waivers; Amendments
	 	68
	 
	 	 
	9.12 Expenses; Indemnity; Damage Waiver
	 	68
	 
	 	 
	9.13 Rescission or Return of Payments
	 	69
	 
	 	 
	9.14 Headings; References
	 	69
	 
	 	 
	9.15 Number and Gender
	 	69
	 
	 	 
	9.16 No Brokers
	 	69
	 
	 	 
	9.17 Counterpart Execution
	 	69
	 
	 	 
	9.18 Duty to Act in Good Faith
	 	70
	 
	 	 
	9.19 USA PATRIOT ACT
	 	70
	 
	 	 
	9.20 Confidentiality
	 	70
	 
	 	 
	9.21 Reserved
	 	71
	 
	 	 
	9.22 Replacement Documentation
	 	71
	 
	 	 
	9.23 Swap Agreements
	 	71
	 
	 	 
	ARTICLE 10 POWER OF ATTORNEY
	 	71
	 
	 	 
	10.1 Power of Attorney Granted
	 	71
	 
	 	 
	ARTICLE 11 JURY WAIVER
	 	72
	 
	 	 
	11.1 JURY WAIVER
	 	72

EXHIBITS

EXHIBIT A — Form of Borrower Assumption Agreement

EXHIBIT B — Form of Compliance Certificate

 -iv-

 

TABLE OF CONTENTS

(continued)

Page

EXHIBIT C — Form of Draw Request

EXHIBIT D — Form of Interest Election Request

EXHIBIT E — Required Insurance

EXHIBIT F — Form of Borrowing Base Report and Collateral Certificate

EXHIBIT G — Form of Environmental Agreement

 -v-exv10w77

Exhibit 10.77

     DEED OF TRUST AND SECURITY AGREEMENT

     THIS DEED OF TRUST AND SECURITY AGREEMENT (the “Deed of Trust”) is made this
18th day of December, 2009 by COLE HD WINCHESTER VA, LLC, a Delaware limited
liability company, having a mailing address at 2555 E. Camelback Road, Suite 400, Phoenix, Arizona
85016 (hereinafter called the “Borrower”), grantor for indexing purposes, to MANUS E. HOLMES, as
trustee (the “Trustee”), a resident of the County of Chesterfield, having a mailing address c/o
First American Title Insurance Company, 14368 Sommerville
Court, Midlothian, Virginia 23113, grantee for indexing purposes, for the benefit of PEOPLE’S
UNITED BANK, a federally chartered banking corporation having a mailing address at 265 Church
Street, New Haven, Connecticut 06510 (the “Lender"), grantee for indexing purposes.

     For valuable consideration, Borrower conveys, transfers, encumbers, pledges and assigns to
Trustee all of Borrower’s present and future rights, title and interest in and for the following:

     (A) LAND: a certain piece or parcel of real property located at 480 Park Center Drive,
Winchester, Virginia, more particularly described in Schedule A attached hereto and made a part
hereof, and all rights, privileges and easements appurtenant thereto (the “Land”).

     (B) IMPROVEMENTS: All the buildings, structures and improvements now or hereafter placed on the
Land (the “Improvements”).

     (C) FIXTURES AND EQUIPMENT: All fixtures, furnishings, appliances, machinery and equipment now or
hereafter installed, attached to, used, or furnished in connection with the use, letting or
operation of the Land and the Improvements or in connection with the activities conducted thereon,
and all renewals or replacements thereof or additions thereto or articles of substitution thereof
(collectively, the “FF&E”), specifically excluding any FF&E owned or leased by tenants of space in
the Improvements.

     (D) CONDEMNATION PROCEEDS: All awards or payments, including interest thereon, which may be made
with respect to the Land and the Improvements as a result of the exercise of the right of eminent
domain in accordance with, and subject to, the terms and conditions of Section 1.4.

     (E) LEASES: All right, title and interest of the Borrower in and to any and all leases, tenancies
or rights of use and occupancy, as the same may be amended, modified, extended, renewed or
replaced, and all guarantees of any tenant’s obligations thereunder, now or hereafter on or
affecting the Land and/or the Improvements, whether or not recorded, with all security therefor
and all monies payable thereunder (hereinafter, individually, a “Lease” and, collectively, the
“Leases”) in accordance with, and subject to, the terms and conditions of Section 1.8.

     (F) PROPERTY
INCOME: All rents, income, profits, security deposits and other benefits to which
the Borrower may now or hereafter be entitled from the Land and the Improvements and/or the
business operations conducted thereat or therefrom (hereinafter the

 

 

“Property Income”) in
accordance with, and subject to, the terms and conditions of Section 1.9.

     (G) INTANGIBLES: All present and future funds, accounts, instruments, accounts receivable,
documents, causes of action, claims, general intangibles (including, without limitation,
trademarks, trade names, service marks and symbols now or hereafter used in connection with any
part of the Land or the Improvements, all names by which the Land or the Improvements may be
operated or known, all rights to carry on business under such names, and all rights, interest and
privileges which Borrower has or may have as developer or declarant under any covenants,
restrictions or declarations now or hereafter relating to the Land or the Improvements) and all
notes or chattel paper now or hereafter arising from or by virtue of any transactions related to
the Land or the Improvements (all of the foregoing, together with the FF&E, being referred to
collectively as the “Service Equipment”).

     (H) PERMITS AND APPROVALS: All permits, licenses, consents and approvals relating to the
development, use and occupancy of the Land and the Improvements.

     TO HAVE AND TO HOLD the above granted and bargained premises, with the privileges and
appurtenances thereof (collectively referred to herein as the
“Property”) but subject to those
encumbrances, listed in the Lender’s mortgagee policy of title insurance (the “Permitted
Encumbrances”), unto the Trustee, its successors and assigns in Trust for the benefit of the
Lender, its successors and assigns forever, to its and their own proper use and behoof.

     THE CONDITION OF THIS DEED OF TRUST IS SUCH THAT:

     WHEREAS, the Lender and the Borrower have entered into a Promissory Note (the “Note”) of even
date herewith, pursuant to which all or part of the Loan proceeds are permitted to be advanced from
time to time and shall be secured by this Deed of Trust. The Note provides for repayment of all or
a portion of the outstanding balance of the Loan proceeds, together with interest thereon, from
time to time as provided therein, a copy of which Note is on file with the Lender. Unless sooner
paid or sooner due and payable, however, the entire then outstanding principal balance of the Loan,
together with accrued interest, shall be due and payable on January 1, 2017.

     WHEREAS, the Lender and the Borrower have entered or will enter into an interest rate swap
transaction evidenced by an ISDA 2002 Master Agreement of even date herewith, together with the
Schedule and all Confirmations relating thereto (the “Swap Agreement”), pursuant to which the
variable rate interest risk under the Note has been or will be hedged and pursuant to which the
Borrower has or will have certain payment and performance obligations to the Lender in the event
the Swap Agreement is terminated (the “Swap Obligations”).

     NOW, THEREFORE, Borrower hereby agrees to comply with and be subject to, the following terms,
representations, covenants and conditions:

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ARTICLE
1.

COVENANTS AND REPRESENTATIONS OF THE BORROWER

     The Borrower covenants, represents and warrants to the Lender as follows:

          1.1 FUTURE ADVANCES; PROTECTION OF PROPERTY

          This Deed of Trust shall secure the principal sum of $17,500,000.00, together with: (a)
interest, late charges, fees and other amounts due under the Note or this Deed of Trust; (b) any
and all additional advances made by Lender to protect or preserve the Property or the lien or
security interest created hereby on the Property, or for taxes, assessments or insurance premiums
as hereinafter provided or for performance of any of Borrower’s obligations hereunder or under the
other Loan Documents or for any other purpose provided herein or in the other Loan Documents
(whether or not the original Borrower remains the owner of the Property at the time of such
advances); (c) all legal fees, costs and other expenses incurred by the Lender by reason of any
default or otherwise in connection with the Obligations (defined below); and (d) the Swap
Obligations. The Borrower agrees that if, at any time during the term of this Deed of Trust or
following a foreclosure hereof (whether before or after the entry of a judgment of foreclosure),
the Borrower fails to perform or observe any covenant or obligation under this Deed of Trust
including, without limitation, payment of any of the foregoing, the Lender may (but shall not be
obligated to) take such steps as are reasonably necessary to remedy any such nonperformance or
nonobservance and provide payment thereof. All amounts so advanced by the Lender shall be added to
the amount secured by this Deed of Trust and the other Loan Documents (and, if advanced after the
entry of a judgment of foreclosure, by such judgment of foreclosure), and shall be due and payable
on demand, together with interest at the Default Rate set forth in the Note, such interest to be
calculated from the date of such advance to the date of repayment thereof.

          1.2 PAYMENT AND PERFORMANCE

          The Borrower will pay the Loan and all other sums due hereunder and all other indebtedness
secured hereby, in lawful money of the United States and pay and perform all of its obligations
under the Note, this Deed of Trust, the Swap Agreement and every other instrument now or hereafter
securing, evidencing or relating to the Loan (collectively referred to herein as the “Loan
Documents”) at the times and in the manner set forth in such Loan Documents. All amounts due the
Lender under any of the aforesaid instruments, including, without limitation, the Swap Obligations,
shall be secured by the lien of this Deed of Trust and shall hereinafter be referred to as the
“Obligations”. All advances made under the Note, this Deed of Trust and any other Loan Documents
shall be referred to collectively, herein as “Loan Advances”.

          1.3 INSURANCE

          A. The Borrower shall keep the Property insured against loss by fire, flood and other
hazards, casualties, liability, contingencies and all other “extended coverage” risks, including
builder’s risk, loss of income and demolition coverage in such amounts, with such companies, and
with such deductibles as the Lender may reasonably require. All insurance

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carried on the Property must show the Lender as an additional insured and be payable to the Lender under the standard
non-contributing mortgagee endorsement and such other endorsements as the Lender may reasonably
require. The Borrower shall claim no cancellation or return of any policy or premium except from
and after the redemption of this Deed of Trust by the Borrower or the satisfaction in full of the
Obligations. The obligation to provide any policy or coverage under this subsection may be
satisfied by the policy or coverage carried by any tenant under an approved Lease, provided such
policy or coverage is primary and noncontributing; and further provided that, in the case of such
tenant’s property policy, the Borrower is named as an additional named insured or is an additional
insured, and the Lender is named as first mortgagee, or, in the case of such tenant’s liability
insurance policy, the Borrower and the Lender are named as additional insureds. In other words,
for so long as both parties to any approved Lease maintain insurance coverage or self-insure in
accordance with the terms of such Lease agreement, the Borrower shall be deemed to be in compliance
with the terms of this subsection.

          B. In the event of any loss or damage to the Property, the Borrower shall give prompt notice
thereof to the Lender. The Borrower authorizes the Lender, at its option, to collect, adjust and
compromise any losses under any hazard insurance policy required to be maintained by Borrower
hereunder. In case of loss and payment by any insurance company of proceeds of a policy required
to be maintained by Borrower hereunder, the amount of insurance proceeds received shall be applied
either in whole or in part upon the payment of the Obligations or to rebuilding or restoring the
Property, as the Lender may elect in its sole discretion. Notwithstanding the foregoing, the
Lender agrees to make such proceeds available to repair or restore the Property so long as (1) no
Event of Default (as defined herein) has occurred and is then continuing, (2) the proceeds are
sufficient to cover the cost to repair or restore the Property substantially to its condition
immediately preceding the loss or damage, and (3) the Borrower is either required or has the
option, under any lease of the Property, to use such insurance proceeds to effect such repair or
restoration.

          Notwithstanding the foregoing provisions of this Section 1.3.B or anything to the
contrary contained herein, for so long as the lease agreement (the “Home Depot Lease”) with Home
Depot U.S.A., Inc. (“Home Depot”) is in effect the disposition of casualty and condemnation
proceeds shall be governed by such lease.

          1.4 TAXES

          A. The Borrower shall pay or cause to be paid within any applicable grace period and before
the same become delinquent, all taxes, water rates, sewer rents, utility charges, assessments, and
governmental or other charges and impositions of any kind whatsoever, including any assessment for
local improvements, whether payable in installments or otherwise, for which lien rights exist,
which may now or hereafter be assessed or levied upon any part of the Property, or in lieu of or in
addition to a tax on the Property (all such charges and payments collectively referred to herein as
the “Taxes”). The Borrower shall promptly notify the Lender of the delinquency in the payment of
any Taxes.

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          Notwithstanding the foregoing provisions of this Section 1.4.A or anything to the
contrary contained herein, for so long as the Home Depot Lease is in effect the right to
contest the validity, applicability or amount of any asserted tax or assessment shall be
governed by such lease.

          B. Upon the request of the Lender, the Borrower shall deposit with the Lender in advance,
and without interest, such amounts, in such installments, to be held on such terms and conditions,
as the Lender may in its sole discretion require in order to pay the Taxes. All such payments
shall be held in a non-interest bearing account at the Lender and may be commingled with other
assets of the Lender. Upon the occurrence of an Event of Default and during the continuance
thereof, the Lender may, at its option, apply the accumulated escrow balance remaining as a credit
against the Obligations. The foregoing escrow requirement shall be waived by the Lender so long as
(i) no Event of Default (as defined herein) has occurred and is then continuing, and (ii) Borrower,
Home Depot or any other tenant of the Property is paying such Taxes directly to the taxing
authority in a timely manner.

          C. The Borrower will not make or claim credit on or deduction from the principal or interest on
the sums secured by this Deed of Trust by reason of any municipal or governmental taxes,
assessments or charges assessed upon the Property, or claim any deduction from the taxable value of
the Property by reason of this Deed of Trust.

          1.5 CONDEMNATION

          A. The Borrower will give the Lender prompt notice of any eminent domain proceedings
affecting any part of the Property. The Borrower hereby appoints the Lender as its
attorney-in-fact, coupled with an interest, and authorizes the Lender to collect, receive, and
retain, subject to the terms hereof, the proceeds of any such award or payment, to give proper
receipts therefor and, if an Event of Default has occurred, to adjust, compromise and settle the
claim therefor. The Lender shall have the right to intervene and participate in any eminent domain
proceedings and the Borrower shall consult with the Lender in all matters pertaining to the
adjustment, compromise or settlement of such proceedings and shall not enter into any agreement
with respect to such matters without the prior written consent of the Lender. The Lender may, in
its sole discretion, retain and apply any eminent domain award or payment toward payment of the
Obligations, or pay same over wholly or in part to the Borrower.

          Notwithstanding the foregoing provisions of this Section 1.5.A, for so long as the Home
Depot Lease is in effect the disposition of casualty and condemnation proceeds shall be governed by
such lease.

          1.6 COMPLIANCE WITH LAWS, ETC.

          A. The Borrower warrants that it presently does and covenants that it will continue to
observe and comply with (1) all laws, regulations, ordinances, rules and orders affecting the
Property or the business operations thereon; and (2) the terms of each insurance policy applicable
to the Property that Borrower is required by this Deed of Trust to
maintain. If

5

 

the Borrower receives notice that it is not in compliance with any such law or condition, the Borrower will
promptly provide the Lender with a copy of such notice.

          Notwithstanding the foregoing, the Borrower may, upon providing Lender with security
satisfactory to Lender, proceed diligently and in good faith to contest the validity or
applicability of any such laws, regulations, ordinances, rules and orders affecting the Property or
the business operations thereon, so long as during such contest the Property shall not be subject
to any lien, charge, fine or other liability and shall not be in danger of being forfeited, lost or closed. The Borrower shall
not use or occupy, or allow the use or occupancy of, the Property in any manner which violates any
Lease of or any other agreement applicable to the Property or any applicable laws, regulations,
ordinances, rules and orders, or which constitutes a public or private nuisance or which makes
void, voidable or cancelable, or increases the premium of, any insurance then in force with respect
thereto.

          B. The Borrower shall indemnify the Trustee and the Lender and hold the Lender and the Trustee
harmless from and against all loss, liability, damage and expense, including attorneys’ fees,
suffered or incurred by the Lender or the Trustee, whether as holder of this Deed of Trust, as
mortgagee in possession or as a successor in interest to the Borrower as owner of the Property by
virtue of foreclosure or acceptance of a deed in lieu of foreclosure (1) under or on account of any
applicable state or federal laws or regulations, including the assertion of any lien thereunder;
(2) any fact or event giving rise to liability under the Borrower’s and Guarantor’s Environmental
Indemnification dated as of even date herewith with respect to the Property; and (3) with respect
to any other matter affecting the Property and governed by the provisions of applicable state or
federal laws or regulations.

          C. In the event of any discharge, spillage, uncontrolled loss, seepage or infiltration of oil or
petroleum or chemical liquids, solids or gaseous products or hazardous waste or hazardous or toxic
substance which would give rise to a lien under applicable law (a “Spill”) affecting the Property,
whether or not the same originates or emanates from the Property or any contiguous real estate, the
Borrower shall contain, remove or mitigate, or cause the containment, removal or mitigation of, the
same immediately and in accordance with any directives of the Commonwealth of Virginia. If the
Borrower shall fail to remedy such Spill or otherwise comply with any of the requirements of any
environmental law or regulation, the Lender may at its election, but without the obligation to do
so, give such notices and/or cause such work to be performed at the Property and/or take any and
all other actions as the Lender shall deem necessary or advisable in order to remedy the Spill or
cure such failure of compliance, and any amounts paid as a result thereof shall be reimbursed by
the Borrower upon demand by the Lender, shall bear interest at the “Default Rate” provided for in
the Note, and shall be secured by the lien of this Deed of Trust.

          1.7 MAINTENANCE AND REPAIR; INSPECTION; SIGN

          A. The Borrower will (1) keep and maintain the Property in good condition, working order and
repair, or cause the same to be so kept and maintained; (2) not commit or suffer any waste of the
Property; (3) repair, replace, rebuild or restore any part of the Property which may be damaged or
destroyed, or cause the same to be so repaired, replaced, rebuilt or

6

 

restored; and (4) make, or cause to be made, all other repairs and replacements to the Property required by any applicable
Lease, or, with respect to any period during which there is no Lease applicable to the Property,
which the Lender may reasonably require. All such work shall be done promptly in a good and
workmanlike manner.

          B. After the occurrence of and during the continuation of an Event of Default, the Lender and any
person duly authorized by the Lender shall, subject to the rights of tenants under the Leases, have
the right to enter and inspect the Property at all reasonable times.

          1.8 SALE, ENCUMBRANCE AND USE

          A. The Borrower shall not, without the Lender’s prior written consent, which may be withheld
in the Lender’s sole discretion for any reason whatsoever, (1) initiate or allow any transfer or
other disposition of, legal or equitable title to all or any part of the Property other than in
compliance with the provisions of Section 4.09 below; (2) if applicable, commence an action to dissolve or
otherwise effect the dissolution of an entity Borrower or guarantor; (3) if applicable, cause the
termination of or change the ownership, the articles of organization, the operating agreement, or
the manager of the Borrower or any guarantor; (4) voluntarily create any liens or encumbrances
against the Borrower’s title to the Property; (5) initiate or, allow any change in the nature of
the use and occupancy of the Property from that permitted by the terms of any Lease, including any
such change which materially increases the likelihood of a Spill; or (6) record any declaration of
condominium or other form of common interest ownership affecting any part of the Property.
Notwithstanding the foregoing, however, any of the following may occur without the consent of the
Lender: (i) transfers of limited partnership interests in any Restricted Party (as hereinafter
defined), (ii) transfers of shares in Cole Credit Property Trust II, Inc., Cole Credit Property
Trust III, Inc. or any other entity whose ownership interests are bought, sold and redeemed through
U.S. broker-dealers, (iii) any involuntary transfer caused by the death of any Restricted Party or
any general partner, shareholder, joint venturer, manager, member or beneficial owner of a trust so
long as the Borrower is reconstituted, if required, following such death and so long as those
persons responsible for the management of the Property and the Borrower remain unchanged as a
result of such death or any replacement management is approved by the Lender, (iv) gifts for estate
planning purposes of any individual’s interests in any Restricted Party to the spouse or any lineal
descendant of such individual, or to a trust for the benefit of any one or more of such individual,
spouse or lineal descendant so long as the Borrower is reconstituted, if required, following such
gift and so long as those persons responsible for the management of the Property and the Borrower
remain unchanged following such gift or any replacement management is approved by the Lender, and
(v) transfers of ownership interests in any Restricted Party and ownership interests in any member,
partner or shareholder of any Restricted Party to any affiliate or subsidiary of a Restricted
Party, provided that, at all times, Christopher H. Cole, Cole Holdings Corporation, Cole Credit
Property Trust II, Inc., and/or Cole Credit Property Trust III, Inc., continues to “control”
the Restricted Party, where the term “control” means the power to direct the management and
policies of the Restricted Party. As used herein, the term “Restricted Party” shall mean the
Borrower and/or the guarantor.

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          B. The Borrower will keep the Property free from the claim of all persons supplying labor or
materials in connection with the construction or repair of any Improvements constituting a part of
the Property; provided, however, that the Borrower shall have the right to contest in good faith
any such claim or demand, so long as it does so diligently, by appropriate proceedings and without
prejudice to the Lender and provided that neither the Property nor any interest therein would be in
any danger of sale, loss or forfeiture as a result of such proceeding or contest. In the event the
Borrower shall contest any such claim or demand, the Borrower shall promptly notify the Lender of
such contest and thereafter shall, upon the Lender’s written request therefor, promptly provide a
bond, cash deposit or other security reasonably satisfactory to the Lender to protect the Lender’s
interest and security should the contest be unsuccessful. If the Borrower shall fail to promptly
discharge or provide security against any such claim or demand as aforesaid, the Lender may do so
and any and all expenses incurred by the Lender, together with interest thereon at the Default Rate
under the Note from the date incurred by Lender until actually paid by the Borrower, shall be
immediately paid by the Borrower on demand and shall be secured by this Deed of Trust and by all of
the other Loan Documents securing all or any part of the Obligations.

          C. The Borrower will furnish, at the Lender’s request, all waivers and releases of liens or
claims upon or with respect to the Property.

          D. The term “transfer or other disposition” as used in Section 1.8.A above shall mean:

               (1) any sale, conveyance, transfer, gift or other disposition, whether voluntary, involuntary, or
by operation of law;

               (2) if the Borrower is a limited liability company, any transfer of a beneficial interest in the
ownership of the membership interest in the company, whether caused by a member’s death or
otherwise, or any change in the Articles of Organization or Operating Agreement of the company, or
any change in members or managers of the company that has not been approved by the Lender, or any
termination of the company;

               (3) if the Borrower is a partnership, any transfer of a partner’s interest, whether caused by the
partner’s death or otherwise, or any change in the partnership agreement, or any termination of the
partnership;

               (4) any dissolution or liquidation of, or the filing of a suit to dissolve or liquidate, the
Borrower;

               (5) except for the existing Lease of the Land and Improvements to Home Depot, a lease or leases of
more than twenty percent (20%) of the Land, Improvements and/or Service Equipment, wherein the
proposed tenant or tenants do not intend to occupy the Property but intend to sell, sublease or
assign their interest in a lease or leases of the Land, Improvements and/or Service Equipment. It
is the express intention of this provision to prohibit a long-term lease or sale and leaseback for
either financing purposes or to effectuate a transfer of the Property, but nothing herein shall
prohibit or affect the rights of Home Depot to sublease or

8

 

assign its interests in, to and under
its Lease, as set forth in such Lease; and

               (6) any management contract wherein management of the Property shall be the responsibility of
anyone other than the Cole Realty Advisors, Inc.

          E. The Borrower shall promptly notify the Lender if any lien, attachment or encumbrance is
recorded against the Property without the Borrower’s consent and shall cause the lien to be
cancelled or bonded over and discharged of record within thirty (30) days after its recording.

          1.9  LEASES

          The Borrower will not take any action, the effect of which would be to cause any Lease to
cease to be in full force and effect, and will not, except with the prior written consent of the
Lender and except as may otherwise be expressly permitted by the terms of this Deed of Trust, (1)
cancel or terminate any Lease, or consent to any cancellation, termination or surrender thereof, or
any assignment thereof; (2) amend, modify or subordinate any Lease; (3) enter into any new Lease;
(4) waive any event of default under any Lease; (5) consent to any prepayment or discount of rent
or advance rent under any Lease; or (6) take any other action in connection with any Lease which
may materially impair or jeopardize the validity of such Lease or the Lender’s interest therein.
The Lender shall have the right to review and reasonably refuse written consent to any of the above
proposed actions of the Borrower based upon the substance of the proposed transaction, the
creditworthiness of the Borrower or the tenant, the financial condition of the Property or
otherwise.

          1.10  PROPERTY INCOME

          As additional and collateral security for the payment of the Obligations and cumulative of any
and all rights and remedies herein provided for, the Borrower hereby absolutely and presently
assigns to the Lender all existing and future Property Income. The Borrower hereby grants to the
Lender the sole, exclusive and immediate right, without taking
possession of the Property, to demand, collect (by suit or otherwise), receive and give valid
and sufficient receipts for any and all of said Property Income, for which purpose the Borrower
does hereby irrevocably make, constitute and appoint the Lender its attorney-in-fact with full
power to appoint substitutes or a trustee to accomplish such purpose (which power of attorney shall
be irrevocable so long as any portion of the Obligations is outstanding, shall be deemed to be
coupled with an interest, shall survive the voluntary or involuntary dissolution of the Borrower
and shall not be affected by any disability or incapacity suffered by the Borrower subsequent to
the date hereof); provided, however, that until the occurrence of an Event of Default under this
Deed of Trust or under any other of the Loan Documents, the Borrower shall have a license to
collect, receive, use and enjoy the Property Income when due and prepayments thereof for not more
than one (1) month prior to due date thereof. Upon the occurrence of an Event of Default, the
Borrower’s license shall automatically terminate without notice to the Borrower and the Lender may
thereafter, without taking possession of the Property, collect the Property Income itself or by an
agent or receiver. From and after the termination of such license, the Borrower shall be the agent
of the Lender in collection of the Property Income, and all of the Property

9

 

Income so collected by the Borrower shall be held in trust by the Borrower for the sole and exclusive benefit of the
Lender, and the Borrower shall, within three (3) business days after receipt of any Property
Income, pay the same to the Lender to be applied by the Lender as hereinafter set forth. Neither
the demand for or collection of Property Income by the Lender shall constitute any assumption by
the Lender of any obligations under any agreement relating thereto. The Lender is obligated to
account only for such Property Income as is actually collected or received by the Lender. The
Borrower irrevocably agrees and consents that the respective payors of the Property Income shall,
upon demand and notice from the Lender of an Event of Default, pay said Property Income to the
Lender without liability to determine the actual existence of any Event of Default claimed by the
Lender. The Borrower hereby waives any right, claim or demand which the Borrower may now or
hereafter have against any such payor by reason of such payment of Property Income to the Lender,
and any such payment shall discharge such payor’s obligation to make such payment to the Borrower.
All Property Income collected or received by the Lender may be applied against all expenses of
collection, including, without limitation, reasonable and actual attorneys’ fees, against costs of
operation and management of the Property and against the Obligations, in whatever order or priority
as to any of the items so mentioned as the Lender directs in its sole discretion and without regard
to the adequacy of its security. Neither the exercise by the Lender of any rights under this
Section 1.10 nor the application of any Property Income to the Obligations shall cure or be deemed
a waiver of any Event of Default. The assignment of Property Income hereinabove granted shall
continue in full force and effect during any period of foreclosure or redemption with respect to
the Property. The Borrower has executed a Collateral Assignment of Leases, Rentals and Property
Income dated of even date herewith (the “Assignment”) in favor of the Lender covering all of the
right, title and interest of the Borrower, as landlord, lessor or licensor, in and to any Leases.
All rights and remedies granted to the Lender under the Assignment shall be in addition to and
cumulative of all rights and remedies granted to Lender hereunder. Unless the Lender shall have
taken possession of the Property pursuant to this Deed of Trust, the Lender shall be without
liability for any loss which may arise from a failure to collect any Property Income, proceeds or
other payments.

          1.11 REMOVALS, ALTERATIONS AND DEMOLITION

          No part of the Improvements may be removed, demolished or materially altered, except as
otherwise provided under any Lease of the Property, without the prior written consent of the Lender
(not to be unreasonably withheld). Without the prior written consent of the Lender (not to be
unreasonably withheld), the Borrower shall not commence construction of any improvements on the
Land other than improvements required for the maintenance or repair of the Property. All such changes, additions and alterations shall
become part of the Property immediately upon installation, except as otherwise provided in any
Lease of all or any part of the Property. Except as permitted under any Lease, no Service
Equipment shall be removed from the Property without the prior written consent of the Lender (not
to be unreasonably withheld), unless it is replaced with an item of similar or greater function and
value. Any replacement equipment shall constitute Service Equipment and be subject to the lien of
this Deed of Trust.

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          1.12 PROTECTION OF LIEN AND OTHER EXPENSES

          The Borrower shall pay, indemnify, defend and hold the Lender harmless from all costs,
disbursements, expenses and reasonable and actual attorneys’ fees incurred by the Lender in
connection with protecting or sustaining the lien of this Deed of Trust or collection
of the Obligations, either before or after obtaining judgment of foreclosure of this Deed of
Trust or judgment on or with respect to the Obligations.

          1.13 BOOKS, RECORDS AND ACCOUNTS; FINANCIAL STATEMENTS

          A. The Borrower will keep and maintain proper and accurate books, records and accounts
reflecting all items of income and expense received or paid by or on behalf of the Borrower in
connection with the Property and all business operations conducted at or from the Property. The
Lender shall have the right, upon not less than seventy-two (72) hours advance written notice to
the Borrower, during normal business hours, to examine any such books, records and accounts. The
Borrower shall provide the Lender with (i) annual financial statements and operating reports for
the Property within one hundred twenty (120) days after each fiscal year-end of the Borrower; and
(ii) annual federal tax returns within thirty (30) days after filing. If the Borrower is a
disregarded entity for federal tax purposes, then the sole member of the Borrower (or such other
affiliated entity whose consolidated tax return includes the Borrower or such member), will provide
its federal tax return to the Lender for purposes of complying with the provisions hereof.

          B. At all times during the Loan term, the aggregate Loan to value ratio (“LTVR”) for the Loan,
as determined by the Lender taking into account the value of the Property and the value of that
certain property located at 643 Berlin Cross Keys Road, Gloucester, New Jersey (the “Gloucester
Property”) that has been mortgaged by Cole TS Gloucester NJ, LLC to the Lender as security for the
Loan, shall not exceed fifty-five percent (55%), and the aggregate debt service coverage ratio
(“DSCR”) for the Loan, as determined annually by the Lender, shall not fall below 1.50 to 1.00.
The DSCR will be calculated based on the actual income received by the Borrower in the aggregate
from both the Property and the Gloucester Property (the “DSCR Income”) less Borrower’s Operating
Expenses of such properties. “Operating Expenses”, as used herein, shall be (i) a replacement
reserve of $0.15 per square foot, and (ii) a 2% management fee. The DSCR Income less the Operating
Expenses shall be considered to be the net operating income (“NOI”). The NOI must support the
proposed debt service on the Loan based upon the interest rate under the Loan at the time of the
Loan closing and a 25-year amortization schedule at not less than 1.50x.

          1.14 SECURITY AGREEMENT AND FINANCING STATEMENT

          This Deed of Trust is a security agreement and is intended to be effective as a fixture
financing statement pursuant to the Uniform Commercial Code as adopted in the Commonwealth of
Virginia with respect to the Service Equipment. The Lender is the secured party and the Borrower
is the debtor with respect to this financing statement and the mailing

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addresses of the secured party and the debtor for the purpose of this financing statement are set forth hereinabove.

          1.15 REQUIRED NOTICES

          In addition to any other notices required under this Deed of Trust, the Borrower shall
promptly notify the Lender of the (1) receipt of notice from any governmental authority relating to
the Property; (2) receipt of any notice from any person (natural or otherwise, but specifically
excluding the Lender) claiming to hold any lien or security interest in the Property; or (3)
commencement of any judicial or administrative proceedings by or against or otherwise affecting the
Borrower or the Property.

          1.16 OTHER DOCUMENTS

          The Borrower, upon its receipt of a written request from the Lender, shall promptly deliver to
the Lender all copies of all reports, licenses, permits, approvals, orders, agreements, options,
and applications in the Borrower’s possession or control relating to or affecting the Property.

          1.17 GENERAL REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants that as of the date of this Deed of Trust:

          A. The Borrower is generally paying its debts as such debts become due, the fair market value
of its assets exceeds its liabilities and no bankruptcy or insolvency proceedings are pending
against or contemplated by the Borrower, and the Borrower has received no written notice that any
such bankruptcy or insolvency proceedings are contemplated against it.

          B. All reports, statements and other data furnished by the Borrower to the Lender in
connection with the Loan are true, correct and complete in all material respects and do not omit
any fact or circumstance which would make the statements contained therein materially misleading;
present fairly the financial position of the Borrower as of the date stated therein, and the
results of the Borrower’s operation and changes in financial position for the years then ended and
the statements are prepared in conformity with generally accepted accounting principles applied on
a consistent basis; and that no material adverse change has occurred in the financial condition of
the Borrower or the Property since the date of said financial statement.

          C. The Property and all Improvements thereon have not suffered any damage from fire or other
casualty, no part of the Property has been condemned or taken by eminent domain and no condemnation
action or other taking of the Property or any part thereof is pending, nor has written notice of
any threat of eminent domain or condemnation or other taking of the Property been received by the
Borrower.

          D. To the actual knowledge of the Borrower and except as set forth in any Phase I
Environmental Site Assessment or other environmental report delivered by the Borrower to the
Lender, there does not now exist on, under or within the Property any Spill. To the actual

12

 

knowledge of the Borrower and except as set forth in any Phase I Environmental Site Assessment or
other environmental report delivered by the Borrower to the Lender, there does not now exist any
condition, nor, to the actual knowledge of the Borrower, will the current or proposed operations
cause there to exist any condition upon the Property or land contiguous thereto which would
materially increase the likelihood of the occurrence of (1) a Spill, or (2) a material violation of
any applicable state or federal laws or regulations.

          E. The Borrower is a validly existing limited liability company organized under the laws of
the State of Delaware, is qualified to do business in the Commonwealth of Virginia, has the legal
capacity and is authorized to execute and deliver all Loan Documents, and the Loan Documents are
valid and binding obligations enforceable in accordance with their respective terms.

          F. There is no action, suit or proceeding pending against or materially affecting the Borrower
or the Property or the business operations conducted at or from the Property or which involve the
possibility of any judgment or liability not fully covered by
insurance or which, in the Borrower’s opinion, might result in any adverse change in the
business, assets or operations of the Borrower which would, in any way, materially and adversely
affect the Property or the validity or enforceability of the Loan Documents, and the Borrower has
received no written notice threatening any such action, suit or proceeding.

          G. The Borrower is not a party to or bound by any contract, agreement or other instrument, or,
to the actual knowledge of the Borrower, subject to any charter or other restriction or any
judgment, order, writ, injunction, decree, rule or regulation which now or in the future may
materially and adversely affect the business, operations, properties, assets or condition,
financial or otherwise, of the Borrower.

          H. The Borrower has filed all required federal, state and local tax returns, if any, and the
Borrower has received not written notice of claims asserted with respect to such taxes.

          I. The Property has frontage on, and direct access for ingress and egress to, the public
street(s) appurtenant thereto.

          J. Electric facilities and any other necessary utilities are and at all times hereafter shall
be, available in sufficient capacity to service the Property satisfactorily, and any easements
necessary to the furnishing of such utility service by the Borrower have been or will be obtained
and duly recorded.

          K. To its actual knowledge, the Borrower is not in default under the terms of any instrument
evidencing or securing any indebtedness of the Borrower, and the Borrower has received no written
notice of any fact or condition which would, if uncured or uncorrected after the receipt of notice
or passage of time, or both, constitute a default under any such instrument.

          1.18 COMMERCIAL TRANSACTION

13

 

          The Borrower represents, warrants and acknowledges that the transaction of which this Deed of
Trust is a part is a “commercial transaction” as defined by the Statutes of the Commonwealth of
Virginia. Monies now or in the future to be advanced to or on behalf of Borrower are not and will
not be used for personal, family or household purposes.

ARTICLE 2.

DEFAULT

          2.1 EVENTS OF DEFAULT

          Any one or more of the following shall constitute an “Event of Default” hereunder:

          A. The failure to pay the Obligations in full by the “Maturity Date” as defined in the Note,
or the failure to pay any other installment of principal and/or interest due under the Note within
fifteen (15) days from the date when such installment is otherwise due and payable, or the failure
to pay any other sums due under any other Loan Document prior to the expiration of any applicable
notice and/or cure periods or, if there is no such applicable notice or cure period, after the
Lender has given written notice to the Borrower of such failure and a period of ten (10) days shall
have passed with no cure by the Borrower.

          B. The occurrence of an Event of Default (as defined therein) under any Loan Documents beyond
any grace or cure periods set forth in said Loan Documents, if any.

          C. The failure to pay the premiums on or keep in force any insurance which Borrower is
required to maintain under Section 1.3.

          D. With respect to any period during which there is no applicable Lease or the obligation to
pay Taxes under an applicable Lease is the landlord’s, the failure to pay any Taxes which the
Borrower is required to pay within the applicable time periods set forth under Section 1.4, or as
to any other period, the failure to cause the payment of any Taxes which a tenant is required to
pay pursuant to any applicable Lease within the applicable time periods set forth under Section
1.4.

          E. The transfer, encumbrance or change in use of, or other action or non-action with respect
to, the Property or the composition of the Borrower in contravention of the provisions of Section
1.8.

          F. The failure of the Borrower to promptly contain, remove or mitigate any Spill, or to cause
the containment, removal or mitigation thereof, or the Borrower’s failure to promptly, upon the
Borrower’s receipt of the Lender’s written request therefor, reimburse the Commonwealth of Virginia
or the Lender, as applicable, for any amounts expended by them with respect to any Spill.

14

 

          G. The actual waste, removal or demolition of, or material alteration to, any part of the
Property in contravention of Sections 1.7 or 1.11 hereof, without the Lender’s prior written
consent.

          H. The failure to observe or perform any other covenant, agreement, obligation, term or
condition set forth herein, other than those otherwise described in this Section 2.1, and, to the
extent such failure or default is susceptible of being cured, the continuance of such failure or
default for thirty (30) days after Borrower’s receipt of written notice thereof from Lender;
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 Borrower commences to
cure such default promptly after receipt of notice thereof from Lender, 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.

          I. The LTVR for the Loan exceeds 55% at any time during the Loan term; provided, however, that
a breach of this provision shall not be an Event of Default if the Borrower pays down the Loan to a
level that cures such breach within thirty (30) days after Borrower’s receipt of written notice of
such breach from the Lender. For purposes hereof, the “value” portion of the LTVR will be
calculated using the aggregate fair market value, as reasonably determined by the Lender, of both
the Property and the Gloucester Property.

          J. The DSCR falls below 1.50 to 1.0 at any time during the Loan term, provided, however, that
a breach of this provision shall not be an Event of Default if the Borrower pays down the Loan to a
level that cures such breach within thirty (30) days after Borrower’s receipt of written notice of
such breach from the Lender or by posting cash or other collateral acceptable to the Lender
sufficient to cover any debt service shortfall for the remaining Loan term. The DSCR will be
calculated as set forth in Paragraph 1.13(B) above.

ARTICLE 3.

REMEDIES

     Whenever an Event of Default shall have occurred, the Lender shall not be required to advance
any part of the remainder of the Loan herein described and the Lender, or the Trustee in its
behalf, may take any one or more of the following remedial steps:

          3.1 ACCELERATION

          The Lender may declare, without demand or notice to the Borrower, any or all of the
Obligations to be due and payable immediately and, upon such declaration, the same shall
immediately become, and be, due and payable, and the Lender may exercise any and all remedies, as
may be available under applicable law.

          3.2 FORECLOSURE

15

 

          The Lender may foreclose this Deed of Trust and exercise its rights as a secured party for all
or any portion of the Obligations which is then due and payable, subject to the continuing lien of
this Deed of Trust for the balance not then due and payable. To the extent permitted by law,
Lender may, at its option, direct the Trustee to take possession of all or any portion of the
Property and proceed to sell the same as a whole or in parts or parcels, at public auction, for
cash or credit, upon any terms the Trustee shall deem appropriate, and to have the Trustee take any
or all other actions set forth herein or in any of the Loan Documents. To the extent permitted by
law, the Borrower consents that such sale may be made of the Property as a whole or in parcels and
that real property and personal property may be separately sold or sold as one lot, all as the
Trustee in its discretion may determine, and further consents that the sale may be on or off the
Property. A bidder’s deposit of not more than ten (10) percent of the sale price may be required
(which, as to the Lender, may be in the form of a credit against the unpaid Obligations). Before
such sale at public auction is made, there shall first be advertisement of the date, time, place
and terms of such sale at least once a week for three successive weeks in the legal notice section
of a newspaper having a general circulation in the city or county in which the Property is then
located. Such advertisements shall set forth all matters required by Virginia law. This is the
“advertisement required” by this Deed of Trust and no other or different advertisement shall be
necessary. The Trustee may act hereunder although it may have been, may now be or may hereafter be
attorney-in-fact of the Lender in respect to all or any part of the Obligations or in respect to
any matter of business whatsoever. The Lender may become the purchaser of all or any portion of
the Property so sold and no purchaser shall be required to see to the proper application of the
purchase money except as may otherwise be required by law. Unless otherwise required by law, the
Trustee shall apply the proceeds of any such sale first, to discharge the expenses of executing the
trust, including a reasonable commission to the Trustee which shall not exceed two and one-half
percent (21/2%) of the gross proceeds of sale; second, to discharge all taxes, levies and
assessments, with costs and lawful interest if they have priority over the lien of this Deed of
Trust, including the due pro rata portion thereof for the current year; third, to discharge in the
order of their priority the remaining Debt, if any, secured by this Deed of Trust, and any liens of
record inferior to this Deed of Trust, with lawful interest; and, fourth, the residue of the
proceeds shall be paid to the Borrower or its successors or assigns; provided, however, that as to
such residue the Trustee shall not be bound by any inheritance, devise, conveyance, assignment or
lien of or upon the Borrower’s equity, without actual notice thereof prior to distribution. If the
Lender instructs the Trustee to proceed to sell all or any portion of the Property in accordance
with the procedure set forth hereinabove and such procedure is terminated prior to such sale by the
Trustee, the Lender shall pay a reasonable commission to the Trustee in an amount which is
customarily paid in Virginia as compensation for such services rendered by the Trustee, but
not exceeding one percent (1%) of the outstanding balance of the Obligations, and the amount
of such commission paid shall be added to the Obligations and shall earn interest at the Default
Rate. The Trustee shall have the right exercisable in its discretion to postpone such sale of the
Property and shall advertise the terms of such postponement at least once a week for three
successive weeks in the newspaper or newspapers in which the notice of sale had been published.

          3.3 POSSESSION OF PROPERTY; APPOINTMENT OF RECEIVER

          A. The Lender may, at its option (a) enter upon and take possession and control of the
Property and the Property Income with those rights and powers more particularly

16

 

set forth in subsection 3.3 C.; (b) make application to a court of competent jurisdiction for and obtain the
immediate ex parte appointment of a receiver authorized to immediately enter upon and take
possession and control of the Property and the Property Income with those rights and powers more
particularly set forth in subsection 3.3 C.; and (c) without taking possession and control of the
Property, immediately commence action to collect directly all Property Income in the place and
stead of the Borrower with full rights and powers to notify all parties liable to make payments of
Property Income to make said payments directly to the Lender or its agents, and the Lender or its
agents shall have the further power and authority to sue for or otherwise collect and receive all
Property Income.

          B. The Borrower hereby waives to the fullest extent permitted by law all rights to prior
notice or court hearing in connection with any action by the Lender of the types set forth in
subsection 3.3 A., and the Borrower further waives any requirement that Lender provide any bond,
surety, or other security in connection with any said action.

          C. In the event the Lender or a receiver enters upon and takes possession and control of the
Property and/or the Property Income pursuant to subsection 3.3 A., said person or entity shall, in
addition to such other rights and powers as may subsequently be authorized, have the right and
power to (1) operate, manage and control the Property and exercise all the rights and powers of the
Borrower in its name or otherwise with respect to the same; (2) make all necessary and proper
maintenance, repairs, replacements, and improvements to the Property required of the landlord under
any applicable Lease or, with respect to any period during which there is no applicable Lease, as
reasonably determined by the Lender; (3) collect and receive all Property Income; and (4) enforce
all terms of existing contracts pertaining to the Property and enter into such new contracts as
required of the landlord under any applicable Lease or, with respect to any period during which
there is no applicable Lease, as reasonably determined by Lender.

          D. All Property Income collected by the Lender, the Lender’s agent or a receiver pursuant to
this subsection 3.3 shall be applied in such order of priority as the Lender may determine in its
sole discretion to (1) interest and principal due on the Obligations; (2) with respect to any
period during which there is no applicable Lease, taxes, assessments and insurance premiums due
with respect to the Property and/or the business operations conducted from the Property and, as to
any other period taxes, assessments and insurance premiums due with respect to the Property which
are the obligation of the landlord under the Lease(s); (3) with respect to any period during which
there is no applicable Lease, all reasonable costs and expenses of operating, maintaining,
repairing and improving the Property and conducting the business operations which are or may be
conducted at the Property and, as to any other period, the reasonable costs and expenses of
operating, maintaining, repairing and improving the Property and conducting the business operations
which have or may be conducted at the Property which are the obligation of the landlord under the
Lease(s); and (4) the compensation, salaries, expenses and disbursements of any agents, employees,
attorneys or other
representatives of the Lender, the Lender’s agent or the receiver in connection with the
possession, control and/or operation of the Property and the business operations conducted
therefrom.

17

 

          E. The Lender, its agents, or any receiver acting pursuant to this subsection 3.3 shall in no
event be liable or accountable for more moneys than actually are received or collected during the
period during which the Lender, its agent or any receiver actually is in possession and control of
the Property. Unless Lender shall have taken possession of the Property pursuant to this Deed of
Trust, neither the Lender, its agents or any receiver shall be liable or accountable in any manner
for the failure to collect Property Income for any reason whatsoever.

          F. All costs, expenses and liabilities of every character incurred by the Lender in managing,
operating and maintaining the Property, not paid from Property Income as hereinabove provided,
shall constitute Lender advances pursuant to Section 3.4.

          G. In the event of foreclosure, the Lender, its agent or any receiver acting pursuant to this
subsection 3.3 may remain in possession of the Property until (1) the foreclosure sale; (2) the
redemption of the Property; or (3) if a deficiency exists, the expiration of any redemption period
of the United States of America extending subsequent to the foreclosure sale. The Borrower shall
and does hereby indemnify and hold the Lender harmless from and against any and all liability,
loss, claim, demand or damage which may or might be incurred by reason of this Deed of Trust,
including, without limitation, claims or demands for security deposits from tenants of the Property
deposited with the Borrower, and from and against any and all claims and demands whatsoever which
may be asserted against the Lender by reason of any alleged obligations or undertakings on its part
to perform or discharge any of the terms, covenants or agreements contained in any of the Leases,
unless occurring after the Lender has taken possession of the Property pursuant to this Deed of
Trust or unless resulting from the Lender’s negligence or willful misconduct. Should the Lender
incur any liability by reason of this Deed of Trust or in defense of any claim or demand for loss
or damage as provided above, the amount thereof, including, without limitation, costs, expenses and
reasonable and actual attorneys’ fees, together with interest thereon at the Default Rate under the
Note from the date paid or incurred by the Lender until repaid by the Borrower, shall be
immediately due and payable to the Lender by the Borrower upon demand and shall be secured by this
Deed of Trust and by all of the other Loan Documents securing all or any part of the indebtedness
evidenced by the Note.

          3.4 LENDER ADVANCES

          The Lender may, without notice or demand, pay any amount which the Borrower has failed to pay,
or perform any act which the Borrower has failed to perform hereunder. In such event such Lender
advances, together with interest thereon from the date made, at the highest interest rate allowed
under the Note, shall be (1) added to the Obligations, (2) payable on demand to the Lender and (3)
secured by the lien of this Deed of Trust.

          3.5 NO MARSHALLING

          The Lender shall not be (1) compelled to release, or be prevented from foreclosing or
enforcing this Deed of Trust upon all or any part of the Property, unless the entire Obligations
shall have been paid; (2) required to accept any part or parts of the Property, as distinguished
from the entire whole thereof, as payment of or upon the Obligations to the extent

18

 

of the value of such part or parts; (3) compelled to accept or allow any apportionment of
the Obligations to or among any separate parts of the Property; or (4) prevented from selling
the Property in one or more parcels or as an entirety and in such manner and order as the Lender in
its sole discretion may elect.

          3.6 REMEDIES CUMULATIVE; LENDER’S DISCRETION

          No remedy conferred upon or reserved to the Lender hereunder is or shall be deemed to be
exclusive but shall be cumulative, and may be exercised in the sole discretion of the Lender at any
time, in any manner, and in any order, and shall be in addition to and separate and distinct from
every other remedy given the Lender under this Deed of Trust, the Note, or any other Loan
Documents, or now or hereafter existing in favor of the Lender at law or in equity. The Lender, in
exercising any remedy provided herein under which it may make payments or perform actions which the
Borrower has failed to do or make, may do so in its sole discretion whenever in its opinion such
payment or performance is necessary or desirable to protect the full security intended by this Deed
of Trust. The Lender shall be entitled to collect all reasonable costs and expenses incurred in
pursuing any of its remedies hereunder, including without limitation, reasonable attorney’s fees
permitted by Rules of Court, costs of documentary evidence, abstracts and title reports.

          3.7 NO WAIVER

          Time and punctuality shall be of the essence in this Deed of Trust, but any delay or failure
by the Lender to exercise any right or remedy available to it upon the occurrence of an Event of
Default hereunder shall not constitute a waiver of such Event of Default or relinquishment of the
right in the future to enforce strict compliance by the Borrower with all of the covenants,
conditions and agreements herein, or of the right to exercise any such rights or remedies if such
Event of Default by the Borrower be continued or repeated. No modification, amendment, change, or
discharge of any term or provision of this Deed of Trust shall be valid or binding unless the same
is in writing and signed by both the Lender and the Borrower. The Lender may however, without
notice to or the consent of the Borrower, any other person primarily or contingently liable for the
payment of the Obligations or the holders of any subordinate lien on the Property, (1) release any
part of the security described herein, (2) release the obligation of any person primarily or
contingently liable for the Obligations secured hereby, (3) extend the time for payment or
otherwise modify the terms of the Obligations or this Deed of Trust, and (4) take any additional
security for the Obligations. No such release, extension, modification or additional security
shall impair or affect the lien of this Deed of Trust or its priority over any subordinate lien and
no such party shall be relieved of any liability by reason thereof.

          3.8 NO MERGER

          In the event the Lender shall acquire title to the Property by conveyance from the Borrower or
as a result of the foreclosure of any other mortgage which the Lender at any time holds with
respect to the Property, this Deed of Trust shall not merge in the fee of the Property

19

 

but shall remain and continue as an existing and enforceable lien for the Obligations secured hereby until
the same shall be released of record by the Lender in writing.

ARTICLE 4.

MISCELLANEOUS PROVISIONS

          4.1 PERSONAL LIABILITY

          Notwithstanding anything to the contrary contained in this Deed of Trust, the liability of the
Borrower and its officers, directors, general partners, managers, members and principals for the
Obligations and for the performance of the other agreements, covenants and obligations contained
herein and in the Loan Documents shall be limited as set forth in Section 12 of the Note.

          4.2 GOVERNING LAW; BINDING EFFECT

          This Deed of Trust shall be governed by and construed, interpreted, regulated and enforced in
accordance with the applicable laws of the Commonwealth of Virginia. All covenants, conditions and
agreements herein shall run with the land, and shall be binding upon and inure to the benefit of
the respective heirs, successors and assigns of the Lender and the Borrower.

          4.3 NOTICE

          All notices, demands, requests or other communications to be sent by one party to the other
hereunder or required by law shall be in writing and shall be deemed to have been validly given or
served by delivery of the same in person to the intended addressee, or by depositing the same with
Federal Express or another reputable private courier service for next business day delivery, or by
depositing the same in the United States mail, postage prepaid, registered or certified mail,
return receipt requested, in any event addressed to the intended addressee: to the Borrower at its
address set forth on the first page of this Deed of Trust, and to the Lender at its address set
forth on the first page of this Deed of Trust, or at such other address as may be designated by
such party as herein provided. All notices, demands and requests shall be effective upon such
personal delivery, or one (1) business day after being deposited with the private courier service,
or two (2) business days after being deposited in the United States mail as required above.
Rejection or other refusal to accept or the inability to deliver because of changed address of
which no notice was given as herein required shall be deemed to be receipt of the notice, demand or
request sent. By giving to the other party hereto at least fifteen (15) days’ prior written notice
thereof in accordance with the provisions hereof, the parties hereto shall have the right from time
to time to change their respective addresses and each shall have the right to specify as its
address any other address within the United States of America.

          4.4 NO AGENCY OR JOINT VENTURE

          Nothing contained in this Deed of Trust shall be construed to cause the Borrower to become the
agent for, or joint venturer with, the Lender for any purpose whatsoever, nor shall

20

 

the Lender be responsible for any shortage, discrepancy, damage, loss or destruction of any part of the Property
for whatever cause unless same is the direct result of the gross negligence or willful misconduct
of the Lender.

          4.5 INVALID PROVISIONS

          If any term or provision herein is judicially determined invalid or unenforceable then the
same shall either be severed from this Deed of Trust or if possible reduced in scope to the extent
necessary to be valid or enforceable.

          4.6 INTERPRETATION

          In this Deed of Trust, unless the context otherwise requires:

          A. Words of the masculine gender shall mean and include correlative words of the feminine and
neuter genders and words importing the singular number shall mean and include the plural number and
vice versa.

          B. Any headings or captions preceding the texts of the several sections of this Deed of Trust
shall be solely for convenience of reference and shall not constitute a part of this Deed of Trust,
nor shall they affect its meaning, construction or effect.

          C. Any reference herein to “reasonable attorneys fees” shall mean fees charged by attorneys
selected by the Lender based upon such attorneys’ then prevailing hourly rates as opposed to any
presumption specified by any statute then in effect in the Commonwealth of Virginia.

          4.7 INCORPORATION BY REFERENCE

          Notwithstanding other provisions of this Deed of Trust, this Deed of Trust shall be construed
to impose and confer upon the parties hereto and the Lender all duties, rights and obligations
prescribed in Section 55-59, and Sections 55-59.1 through 55-59.4, of the Code of Virginia of 1950,
as amended (the “Virginia Code”) and to incorporate herein the following provisions of Section
55-60 of the Virginia Code by the following short form references:

	 	 	 	Exemptions waived.
	 	 	 	Subject to call upon default.
	 	 	 	Renewal, extension or reinstatement permitted.
	 	 	 	Substitution of trustee permitted.
	 	 	 	Any trustee may act.

     NOW, THEREFORE, if all agreements and provisions contained herein are fully kept and performed
by the Borrower, and all the Obligations shall be fully paid in all respects, then the Trustee
shall execute and deliver to the Borrower a full written release which shall reconvey the Property
to the Borrower and terminate this Deed of Trust; and further provided that until

21

 

such a full written release is executed and delivered, this Deed of Trust shall remain in full force and
effect.

[The Remainder of this Page Intentionally Left Blank]

22

 

     IN WITNESS WHEREOF, the Borrower has caused this instrument to be executed and delivered this
18th day of December, 2009.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered	 	 	 	 	 	COLE HD WINCHESTER VA, LLC
	in the presence of:	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Cole REIT Advisors III, LLC

Its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Mary Bates
 

Name:

	 	 	  	 	 	 	 	By:
	 	/s/ Todd J. Weiss
 

Name: Todd J. Weiss
	 	 
	 

	 	 	 	 	 	 	 	 	 	Its Senior Vice President	 	 
	 

	 	 	 	 	 	 	 	 	 	Duly Authorized	 	 
	/s/ Carol Beck
 

Name:

	 	 	  	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	STATE OF ARIZONA

	 	 	)	 	 	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 	 	 	 	 
	COUNTY OF MARICOPA

	 	 	)	 	 	 	 	 	 	 	 	 

     On
this
17th day of December, 2009, before me, personally appeared Todd J.
Weiss, Senior Vice President of Cole REIT Advisors III, LLC, Manager of Cole HD Winchester VA, LLC,
whose identity was proved to me on the basis of satisfactory evidence to be the person whose name
is subscribed to this document, and who acknowledged that he signed the above document on behalf of
said company.

/s/
Taryn M. Hernandez

Name: Taryn M. Hernandez

Notary Public

My Commission Expires: April 23, 2012

Seal:

Signature Page to Deed of Trust

 

 

SCHEDULE A

Description of Land

 

 

DEED OF TRUST AND SECURITY AGREEMENT

	 	 	 	 	 
	COLE HD WINCHESTER VA, LLC	 	 
	 
	 	 	 	 
	-to-

	 	MANUS E. HOLMES, as
trustee,

for the benefit of	 	 
	 
	 	 	 	 
	PEOPLE’S UNITED BANK	 	 
	 
	 	 	 	 
	Dated: December __, 2009	 	 
	 
	 	 	 	 
	 

	 	 	 	TAX PARCEL ID NUMBER: 54-A-91-A
	 
	 	 	 	 
	 

	 	 	 	COUNTY: Frederick
	 
	 	 	 	 
	RECORD AND RETURN TO:	 	 
	 
	 	 	 	 
	Thomas B. Mitchell, Esq.	 	 
	Pepe & Hazard LLP	 	 
	Goodwin Square	 	 
	225 Asylum Street	 	 
	Hartford, CT 06103

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