Document:

Exhibit 10.21

 

EXHIBIT 10.21

LOAN AGREEMENT

between

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

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

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

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

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

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

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

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

GREIT — WESTERN PLACE, LP, a Texas limited partnership

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

a national banking association

dated as of

February 15, 2008

 

 

LOAN AGREEMENT

          This Loan Agreement is made as of February 15, 2008 by and between WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association, whose address is Wachovia Bank, N.A., Real Estate
Financial Services, General Banking Group, Mail Code: CA 6233, 15750 Alton Parkway, Irvine,
California 92618 (“Lender”), and NNN WESTERN PLACE, LLC, a Delaware limited liability company
(“Western Place”), NNN WESTERN PLACE 1, LLC, a Delaware limited liability company (“Western Place
1”), NNN WESTERN PLACE 2, LLC, a Delaware limited liability company (“Western Place 2”), NNN
WESTERN PLACE 3, LLC, a Delaware limited liability company (“Western Place 3”), NNN WESTERN PLACE
4, LLC, a Delaware limited liability company (“Western Place 4”), NNN WESTERN PLACE 5, LLC, a
Delaware limited liability company (“Western Place 5”), NNN WESTERN PLACE 6, LLC, a Delaware
limited liability company (“Western Place 6”), NNN WESTERN PLACE 7, LLC, a Delaware limited
liability company (“Western Place 7”), and GREIT — WESTERN PLACE, LP, a Texas limited partnership
(“GREIT-Western Place”, and collectively with Western Place, Western Place 1, Western Place 2,
Western Place 3, Western Place 4, Western Place 5, Western Place 6 and Western Place 7, the
“Borrower”), whose address is c/o Grubb & Ellis Realty Investors, LLC, 1551 N. Tustin Avenue, Suite
300, Santa Ana, California 92705.

RECITALS

          A. Borrower has acquired or will acquire fee simple title to that certain real property
located in Fort Worth, Texas, as more particularly described in Exhibit A attached hereto
(collectively, the “Property”), commonly known as 6000 and 6100 Western Place, Fort Worth, Texas.

          B. Borrower has requested that Lender extend credit to it for the financing and operation of
the Project (as defined herein).

          C. Lender is prepared to extend such credit in accordance with and subject to the terms and
conditions set forth herein.

          NOW, THEREFORE, in consideration of the covenants and conditions herein contained, the parties
agree as follows:

ARTICLE I

DEFINITIONS

          1.1 Definitions. As used herein, the following terms shall have the meanings set
forth below:

          “Affiliate” of any Person means any other Person directly or indirectly controlling,
controlled by or under direct or indirect common control with such Person. For purposes of this
definition, “control” when used with respect to any Person means the power to

-1-

 

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” shall mean this Loan Agreement, as the same may be amended, modified,
supplemented, renewed and restated from time to time.

          “Appraisal” shall mean an appraisal of the “as is” value of the Property and the Improvements
(i) ordered by Lender, (ii) prepared by an appraiser satisfactory to Lender, (iii) in compliance
with all federal and state standards for appraisals, (iv) reviewed by Lender and (v) in form and
substance satisfactory to Lender in its sole and absolute discretion; provided, however, that in
reviewing such appraisals and applying such discretion, Lender will act in good faith and will
consistently apply the standards generally used by Lender in the normal course of its real estate
lending business in order to review and evaluate appraisals.

          “Borrower” has the meaning set forth in the preamble hereof, whose address is as set forth in
the introductory paragraph to this Agreement

          “Budget” shall mean the cost breakdown/budget for the Loan attached hereto as Exhibit B, which shall set forth the costs to be paid with the Loan.

          “Business Day” shall mean a day of the year other than Saturdays, Sundays and legal holidays
on which banks are required to be closed in California, Texas or North Carolina.

          “Calendar Month” shall mean any of the twelve (12) calendar months of the year. With respect
to any payment or obligation that is due or required to be performed within a specified number of
Calendar Months, then such payment or obligation shall become due on the day in the last of such
specified number of Calendar Months that corresponds numerically to the date on which such payment
or obligation was incurred or commenced; provided, however, that with respect to any obligation
that was incurred or commenced on the 29th, 30th or 31st day of any Calendar Month and if the
Calendar Month in which such payment or obligation would otherwise become due does not have a
numerically corresponding date, such obligation shall become due on the first Business Day of the
next succeeding Calendar Month.

          “CC&R’s” shall mean any and all covenants, conditions, restrictions, maintenance agreements or
reciprocal easement agreements affecting the Project or any of the Property.

          “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

          “Closing Date” shall mean the date the Mortgage is recorded in the official records of the
County.

-2-

 

          “Collateral” shall mean all real and personal property (whether tangible or intangible) in
which a lien, encumbrance or security interest is granted in favor of Lender pursuant to the Loan
Documents.

          “County” shall mean Tarrant County, Texas.

          “Day” or “Days” shall mean calendar days unless expressly stated to be Business Days.

          “Debt Service Coverage Ratio” shall mean a fraction, the numerator of which is the Net
Operating Income from the Project before payment of debt service for the three-month period in
question, and the denominator of which is an amount equivalent to the sum of (a) an amount, as
reasonably determined by Lender, equivalent to the interest that would accrue on the Loan during
such three-month period at a rate of interest equal to the greater of (i) seven and ninety-eight
one-hundredths percent (7.98%) per annum, or (ii) the rate of one and one-half percent (1.50%) per
annum above the Treasury Note Rate (herein defined), and (b) an amount for such period, as
reasonably determined by Lender, equivalent to the amount of principal that would be payable during
such three-month period according to a schedule that would fully amortize the Loan over a 30-year
period given the foregoing rate of interest.

          “Default Rate” shall have the meaning assigned in the Note.

          “Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement executed
by Borrower and Guarantor of even date herewith.

          “Event of Default” shall mean the occurrence of any of the events listed in Section 11.1 of
this Agreement.

          “ERISA” shall mean Employee Retirement Income Security Act of 1974, as the same may, from time
to time, be amended.

          “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided, however, that (a) if the day for which such rate is to be determined
is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if
such rate is not so published for any Business Day, the Federal Funds Rate for such Business Day
shall be the average rate charged to Lender on such Business Day on such transactions as determined
by Lender.

          “Financing Statement” shall mean one or more UCC-1 financing statements authorized by
Borrower, as debtor, in favor of Lender, as secured party, and perfecting Lender’s security
interest in the collateral described therein, each in form and substance satisfactory to Lender, to
be filed in the Office of the Secretary of State of Delaware and Texas, and in such other offices
for recording or filing such statements in such jurisdictions as Lender shall desire to perfect
Lender’s security interest or reflect such interest in appropriate public records.

-3-

 

          “Governmental Authority” shall mean (a) any governmental municipality or political subdivision
thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission,
department instrumentality or public body, or (c) any court, administrative tribunal or public
utility.

          “Guarantor” shall collectively mean the Trust Guarantor and Triple Net Guarantor.

          “Guaranty” shall collectively mean the Triple Net Guaranty and the Trust Guaranty.

          “Improvements” shall mean all on-site and off-site improvements to the Property, if any, and
appurtenances now or later to be located on the Land and/or in such improvements.

          “Indebtedness” means, as to any Person (a) indebtedness created, issued, incurred or assumed
by such Person for borrowed money or evidenced by bonds, debentures, notes or similar instruments;
(b) all obligations of such Person to pay the deferred purchase price of property or services and
all other accounts payable; (c) all indebtedness secured by a lien on any asset of such Person
whether or not such indebtedness is assumed by such Person; (d) all obligations, contingent or
otherwise, of such Person directly or indirectly guaranteeing any indebtedness or other obligation
of any other Person or in any manner providing for the payment of any indebtedness or other
obligation of any other Person or otherwise protecting the holder of such indebtedness against loss
(excluding endorsements for collection or deposit in the ordinary course of business); (e) the
amount of all reimbursement obligations and other obligations of such Person (whether due or to
become due, contingent or otherwise) in respect of letters of credit, drafts, notes, bankers’
acceptances, surety or other bonds and similar instruments; (f) all capitalized lease obligations;
(g) all other obligations that would be included as liabilities on a balance sheet prepared in
accordance with GAAP; (h) all payables of such Person relating to minority interests; (i) net
liabilities under Swap Contracts.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Indemnitee” means Lender (and its successors and assigns) and any participating or
syndicating lenders relating to the Loan.

          “Interest Rate” shall have the meaning assigned in the Note.

          “Leases” means all leases, and other occupancy or use agreements (whether oral or written),
now or hereafter existing, which cover or relate to the Property or any part thereof, together with
all options therefor, amendments thereto and renewals and modifications thereof.

          “Lender” shall mean Wachovia Bank, National Association, a national banking association, whose
address is as set forth in the introductory paragraph to this Agreement, and its successors and
assigns.

          “Lending Office” means the office, branch, subsidiary or affiliate of Lender selected by
Lender, from time to time, for the funding or booking of the Loan.

-4-

 

          “LLC Borrowers” means, collectively, NNN Western Place, LLC, a Delaware limited liability
company, NNN Western Place 1, LLC, a Delaware limited liability company, NNN Western Place 2, LLC,
a Delaware limited liability company, NNN Western Place 3, LLC, a Delaware limited liability
company, NNN Western Place 4, LLC, a Delaware limited liability company, NNN Western Place 5, LLC,
a Delaware limited liability company, NNN Western Place 6, LLC, a Delaware limited liability
company, and NNN Western Place 7, LLC, a Delaware limited liability company

          “Loan” shall mean the loan made by Lender to Borrower pursuant to this Agreement for the
refinancing of the Property and the operation of the Project.

          “Loan Amount” shall mean Twenty-Eight Million and No/100 Dollars ($28,000,000.00).

          “Loan Documents” shall mean this Agreement, the Note, the Mortgage, Financing Statements, the
Guaranty, the Environmental Indemnity, the Subordination of Property Management Agreement and all
other documents and instruments (other than any Swap Contracts) now or hereafter executed and
delivered in connection with this Agreement and the Loan described herein.

          “London Banking Day” means a day on which dealings in dollar deposits are conducted by and
between banks in the London interbank eurodollar market.

          “LP Borrower” means GREIT — Western Place, LP, a Texas limited partnership.

          “Maturity Date” shall mean the date upon which the Loan becomes due and payable, which date
shall be February 28, 2009.

          “Mortgage” shall mean a Deed of Trust, Assignment, Security Agreement and Fixture Filing
executed by Borrower, as trustor, and naming Lender as beneficiary, creating a first lien on the
Property, the Improvements, and all other buildings, fixtures and improvements now or hereafter
owned or acquired by Borrower and situated on the Property, and all rights and easements
appurtenant thereto, securing indebtedness and obligations pursuant to the Loan Documents and any
Swap Contracts with Lender or its Affiliates, all in form and substance acceptable to Lender, as
such Mortgage may be amended, modified, supplemented, renewed and restated from time to time.

          “Net Operating Income” shall mean the amount of (a) Rental Income for the applicable three (3)
month period of time in question, less (b) the amount of Operating Expenses for such period
of time.

          “Non-Related Party” shall mean a person or entity that is not an Affiliate of Borrower.

          “Note” shall mean the Promissory Note of even date herewith evidencing the Loan and secured by
the Mortgage, as such note may be amended, modified, supplemented, renewed or restated from time to
time.

-5-

 

          “Obligations” means all indebtedness and obligations owing by Borrower to Lender under the
Loan Documents.

          “Operating Expenses” shall mean any and all costs and expenses incurred in connection with the
Project (or which should have been incurred to operate and maintain the Project in a first class
manner) during the applicable three-month time period in question as reasonably determined by
Lender, including without limitation (a) taxes and assessments imposed upon the Project which are
reasonably allocable to such time period, (b) bond assessments which are reasonably allocable to
such time period, (c) insurance premiums for casualty insurance and liability insurance carried in
connection with the Project which are reasonably allocable to such time period, (d) operating
expenses incurred by Borrower for the management, operation, cleaning, leasing, maintenance and
repair of the Project which are reasonably allocable to such time period, including a management
fee as approved by Lender, and (e) a sufficient replacement reserve (based on an annual rate of
$0.15 per foot), but excluding depreciation, debt service and capital expenditures). Operating
Expenses shall not include any depreciation, interest, principal, loan fees, extension fees or
other payments on the Loan.

          “Permitted Exceptions” means the matters approved by Lender as permitted exceptions of title
with respect to the Property and set forth as exceptions to title in the Title Insurance Policy
approved by Lender.

          “Person” shall mean 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.

          “Project” shall mean the Property and the Improvements.

          “Property” shall mean the real property described in Exhibit A attached hereto.

          “Rental Income” shall mean the rental income received by Borrower, as reasonably determined by
Lender, for the three (3) month period of time in question from the tenant Leases of the
Improvements which are then in effect (and as to which the tenants thereunder are in possession and
paying rent, and are not in default) or any other income, if any, generated by Borrower’s ownership
and operation of the Project.

          “Subordination of Property Management Agreement” shall mean that certain Subordination of
Property Management Agreement of even date herewith executed by Borrower and property manager, in
form and content satisfactory to Lender.

          “Swap Contract” shall mean any agreement, whether or not in writing, relating to any
transaction that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap or option, bond, note or bill option, interest rate option,
forward foreign exchange transaction, interest cap, collar or floor transaction, currency swap,
cross-currency rate swap, swap option, currency option or any other similar transaction (including
any option to enter into the foregoing) or any combination of the foregoing, and, unless the
context otherwise clearly requires, any form of master agreement published by the International
Swaps and Derivatives Association, Inc., or any other master agreement, together

-6-

 

with any related schedules and confirmations, as amended, supplemented, superseded or replaced
from time to time, relating to or governing any or all of the foregoing.

          “TI/LC/CapEx Holdback” means the portion of the Loan in the amount of $3,750,000.00 allocated
on the Budget under the “Tenant Improvements” line item.

          “TIC Agreement” means that certain Amended and Restated Tenants In Common Agreement
dated as of _________, 2008, by and between each Borrower.

          “Title Company” shall mean Commonwealth Land Title Insurance Company, or such other title
insurance company as Lender may approve from time to time.

          “Title Insurance Policy” shall mean a title insurance policy in the form of an American Land
Title Association Loan Policy (1992) extended coverage (without revision, modification or
amendment) issued by the Title Company, in form and substance satisfactory to Lender and containing
such endorsements as Lender may require.

          “Triple Net Guarantor” shall mean NNN Realty Advisors, LLC, a Delaware corporation.

          “Triple Net Guaranty” shall mean that certain Repayment Guaranty of even date herewith
executed by Triple Net Guarantor, in form and content satisfactory to Lender.

          “Trust Guarantor” shall mean Gary H. Hunt, W. Brand Inlow, Edward A. Johnson, D. Fleet
Wallace, and Gary T. Wescombe, as Trustees of the G REIT Liquidating Trust dated January 22, 2008

          “Trust Guaranty” shall mean that certain Repayment Guaranty of even date herewith executed by
the Trust Guarantor, in form and content satisfactory to Lender.

          “Unmatured Event of Default” shall mean an event or condition which with notice or lapse of
time, or both, would become an Event of Default.

          1.2 Accounting Terms. For purposes of this Agreement, all accounting terms not
otherwise defined herein or in the Recitals shall have the meanings assigned to them in conformity
with generally acceptable accounting standards and principles, consistently applied (“GAAP”).

ARTICLE II

THE LOAN

          2.1 Agreement to Lend and Borrow. Subject to the terms and conditions of this
Agreement, Lender agrees to lend to Borrower and Borrower agrees to borrow from Lender the Loan
Amount (or such lesser amount as Borrower requests that Lender advance). The Loan proceeds shall
be used for the purposes of financing the Property and operating the Project in accordance with this Agreement, and other uses reasonably approved by Lender. All amounts
advanced under the Loan and repaid shall not be re-borrowed.

-7-

 

          2.2 Evidence of Indebtedness. The Loan shall be evidenced by the Note. In the event
of any inconsistency between the Note and this Agreement, the provisions of this Agreement shall
prevail.

          2.3 Interest Rate.

          (a) Payment. The Loan shall bear interest on the unpaid principal amount
thereof at a rate per annum equal to the Interest Rate. Interest shall be payable in
arrears and shall be due on the first day of each calendar month and on the Maturity Date
(as it may be extended) and on the date the outstanding principal amount of the Note is
repaid in full.

          (b) Rate after Default. If all or a portion of the principal amount of the
Loan made hereunder or any installment of interest on the Loan shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise and after any applicable
opportunity to cure), any such overdue principal amount and, to the extent permitted by
applicable law, any overdue installment of interest on the Loan shall, without limiting any
other rights of Lender, bear interest, payable on demand, for each day until paid at the
Default Rate. After the occurrence and during the continuance of an Event of Default, the
principal amount of the Loan (and, to the extent permitted by applicable law, all accrued
interest thereon) may, at the election of Lender, bear interest at the Default Rate.

          (c) Computation of Interest. Interest in respect of the Loan shall be
calculated on the basis of a 360-day year for the actual days elapsed. Each determination
of an interest rate by Lender pursuant to any provision of this Agreement shall be
conclusive and binding on Lender and Borrower in the absence of manifest error.

          (d) No Deductions. All payments of principal or interest under the Note shall
be made without deduction of any present and future taxes, levies, imposts, deductions,
charges or withholdings, which amounts shall be owed and paid by Borrower. Borrower will
pay the amounts necessary such that the gross amount of the principal and interest received
by Lender is not less than that required by the Note.

          (e) Order of Application. Any payments received by Lender will be applied in
the following order: (1) late charges; (2) impound payments for taxes and insurance (if
any); (3) interest; and (4) principal.

          2.4 Maturity of the Loan. All principal owing on the Loan, and all accrued interest
and other sums owing under the Loan Documents not otherwise paid when due, shall be due and payable
in full on the Maturity Date.

          2.5 Prepayment. Upon not less than thirty (30) days’ prior written notice to Lender,
Borrower may prepay the Loan, in whole or in part (provided Lender shall have no obligations to
readvance any repaid principal), without prepayment premium (but subject to any costs set forth in any Swap Contract should Lender in its sole discretion elect to terminate
any such Swap Contract provided by Lender or its Affiliate upon any such prepayment).

-8-

 

          2.6 Security. Payment of the Notes shall be secured by the following:

          (a) The Mortgage;

          (b) To the extent to which they may be assigned, all other rights, licenses, permits,
franchises, authorizations, approvals and agreements relating to the use, occupancy or
operation of the Project; and

          (c) The Financing Statement.

          2.7 Fees.

          (a) Loan Fee. On the Closing Date, Borrower shall pay to Lender a loan fee in
the amount of One Hundred Twelve Thousand and No/100 Dollars ($112,000.00).

          (b) Extension Fees. Borrower shall pay all fees for any maturity date
extension as and when due pursuant to this Agreement.

          (c) Exit Fee. Borrower shall pay to Lender an exit fee of $70,000.00. This
exit fee shall be payable in full upon the first to occur of (i) any Event of Default, (ii)
the Maturity Date (as it may be extended pursuant to Section 2.4 above), and (iii) repayment
of the Loan in full. Notwithstanding the above, payment by Borrower of the exit fee shall
be waived by Lender if (1) Borrower obtains a permanent loan from Wachovia Real Estate
Capital Markets for the refinance of the Property, or (2) the Property is sold to a
non-affiliated third party and the Loan is repaid in full prior to the Maturity Date.
Borrower acknowledges, however, that Lender has made no commitment, express or implied, to
provide any such refinance loan, and Lender is under no obligation to provide any such loan.

          2.8 Increased Costs.

          (a) If any Change in Law shall: (i) impose, modify or deem applicable any reserve,
special deposit, compulsory loan, insurance charge or similar requirement against assets of,
deposits with or for the account of, or credit extended or participated in by, Lender; (ii)
subject Lender to any tax of any kind whatsoever with respect to this Agreement or the Loan,
or change the basis of taxation of payments to Lender in respect thereof; or (iii) impose on
Lender or the London interbank market any other condition, cost or expense affecting this
Agreement or the Loan or participation therein; and the result of any of the foregoing shall
be to increase the cost to Lender of making or maintaining the Loan (or of maintaining its
obligation to make the Loan), or to reduce the amount of any sum received or receivable by
Lender hereunder (whether of principal, interest or any other amount) then, upon request of
Lender, Borrower will pay to Lender such additional amount or amounts as will compensate
Lender for such additional costs actually incurred or reduction actually suffered.

          (b) If Lender determines that any Change in Law affecting Lender or any Lending Office
of Lender or Lender’s holding company, if any, regarding capital

-9-

 

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, the Loan to a level
below that which Lender or Lender’s holding company could have achieved but for such Change
in Law (taking into consideration Lender’s policies and the policies of Lender’s holding
company with respect to capital adequacy), then from time to time Borrower will pay to
Lender such additional amount or amounts as will compensate Lender or Lender’s holding
company for any such reduction suffered.

ARTICLE III

CONDITIONS PRECEDENT

          3.1 Closing. Lender’s obligations to close the Loan and perform under this Agreement
are expressly conditioned upon (i) Borrower’s satisfaction of all of the conditions set forth in
Exhibit C hereto; (ii) Borrower’s satisfaction of the conditions for disbursement set forth
in Article IV (as applicable); (iii) the Title Company’s unconditional commitment to issue the
Title Insurance Policy; and (iv) Borrower’s delivery to Lender of the following documents, in form
and content satisfactory to Lender, duly executed (and acknowledged where necessary) by the
appropriate parties thereto:

          (a) This Agreement;

          (b) The Note;

          (c) The Mortgage, which shall be duly recorded in the official records of the County;

          (d) The Financing Statements, each of which shall be duly filed with the applicable
Secretary of State of each Borrower’s formation;

          (e) The Guaranty;

          (f) The Environmental Indemnity;

          (g) The Subordination of Property Management Agreement;

          (h) Assignments of all other agreements, contracts, rights, permits, licenses,
entitlements, authorizations, and franchises relating to the Project, and consents to such
assignments where deemed appropriate by Lender; and

          (i) Such other documents that Lender may reasonably require.

ARTICLE IV

LOAN DISBURSEMENTS

          4.1 Recordation Disbursements. Upon recordation of the Mortgage and satisfaction of
all conditions set forth herein, provided that the Title Company has issued or is

-10-

 

irrevocably committed in writing to issue to Lender the Title Insurance Policy referred to in Section 5.1
hereof, Lender shall disburse to Borrower the entirety of the Loan proceeds minus the
TI/LC/CapEx Holdback.

          4.2 Subsequent Disbursements. Subsequent to recordation of the Mortgage and subject
to the provisions of this Agreement, Borrower shall be entitled to disbursements of sums as are
required to be used for the payment of leasing commissions, tenant improvements and other capital
expenditures as set forth below.

          4.3 Limitations and Conditions on Disbursements. In addition to the conditions
precedent set forth in Sections 3.1 and 4.1 above, Borrower shall be entitled to disbursement of
the Loan only in accordance with the terms and conditions of this Agreement (unless waived or
modified by Lender) and, in addition, the following conditions (unless waived or modified by
Lender):

          (a) The representations and warranties of Borrower contained in all of the Loan
Documents shall be correct in all material respects on and as of the date of the
disbursement as though made on and as of that date and no Event of Default or Unmatured
Event of Default shall have occurred and be continuing as of the date of the disbursement;

          (b) No mechanics’ lien shall have been recorded against the Property that has not been
released or bonded over; and

          (c) Lender shall be satisfied that the advance will not be junior in priority to any
mechanics’ or materialmen’s liens or any intervening or other liens on the Property other
than Permitted Exceptions.

          (d) Excluding the initial advance of the Loan, all advances of the Loan shall be
limited to the purposes and amounts set forth in the categories set forth in the Budget;
provided that notwithstanding any limitations on disbursements set forth in this Agreement,
the budget, or otherwise, Borrower shall pay all costs and expenses arising in connection
with the Project;

          (e) Lender shall not be required to make any requested advance (excluding the initial
advance of the Loan) before five (5) days after the receipt of a written request therefor
from Borrower, and in any event until all applicable conditions and requirements in this
Agreement have been satisfied;

          (f) Lender shall have no obligation to make advances from the TI/LC/CapEx Holdback more
often than once in any one month period; and

          (g) Advances from the TI/LC/CapEx Holdback for capital expenditures and tenant
improvements shall be made on the following conditions (in addition to those specified in
Sections 4.2(a)-(f) above):

          (1) Each request for such an advance shall specify the amount requested, shall
be on forms satisfactory to Lender, and shall be accompanied by

-11-

 

appropriate
invoices, bills paid affidavits, lien waivers, title updates, endorsements to the
title insurance, and other documents as may be required by Lender.

          (2) Borrower shall not use any portion of an advance from the TI/LC/CapEx
Holdback for payment of any other cost except as specifically set forth in a request
for advance approved by Lender in writing.

          (3) For advances from the TI/LC/CapEx Holdback to be used for tenant
improvements, Borrower shall have submitted and Lender shall have approved (a) the
lease for which the tenant improvements are to be constructed, and (b) a schedule of
the tenant improvements setting forth (i) each item of tenant improvements which
Borrower or the applicable tenant intends to undertake; (ii) the estimated cost of
each such item, and (iii) the time schedule for completing the tenant improvements.

          (4) All tenant improvements constructed by Borrower prior to the date an
advance from the TI/LC/CapEx Holdback for tenant improvements is requested shall be
completed to the satisfaction of Lender in accordance with the plans therefor
approved by the tenant under the applicable lease; provided that to the extent the
construction scheduled for any such tenant improvements contemplates that
construction will extend beyond the date of the tenant improvements advance, such
construction shall be completed prior to the date of the tenant improvements advance
to the extent set forth in the construction schedule.

          (5) Each advance from the TI/LC/CapEx Holdback for capital expenditures and
tenant improvements, except for a final advance from the TI/LC/CapEx Holdback, shall
be in the amount of actual costs incurred or to be incurred less ten percent (10%)
of such costs as retainage to be advanced as part of a final advance from the
TI/LC/CapEx Holdback (however, the retainage will be advanced on a per-leased
premises basis if the conditions contained in Section 4.3(g)(6) are met for the
applicable leased premises).

          (6) As a condition to the funding of the final advance from the TI/LC/CapEx
Holdback for tenant improvements for any space in the Project:

          (1) the tenant under the lease is in occupancy, has accepted the leased
premises and is paying rent under the lease, without offset, credit or
defense, as evidenced by a tenant estoppel certificate executed by such tenant, addressed to Lender, in form satisfactory to
Lender;

          (2) the brokers to whom lease commissions are payable have acknowledged
payment in full of all commissions due with respect to the lease in question
and have released Lender, Borrower, the Project and the lease from all
commissions due with respect to such lease (however,

-12-

 

this acknowledgment and
release may be received immediately after such final advance is advanced);
and

          (3) Borrower shall have furnished Lender with (i) a true and correct
copy of the final and unconditional certificate of occupancy for the space
under said lease, issued without restriction by the appropriate governmental
authority having jurisdiction over the Project; and (ii) final original lien
waivers (conditioned only upon receipt of funds from the final advance)
executed by each contractor, subcontractor and materialmen supplying labor
or materials for the tenant improvements.

          (7) As a condition to the funding of the final advance from the TI/LC/CapEx
Holdback for capital expenditures for any space in the Project, Borrower shall have
furnished Lender with final original lien waivers (conditioned only upon receipt of
funds from the final advance) executed by each contractor, subcontractor and
materialmen supplying labor or materials for the “other improvements” construction
referred to in the Budget.

          (h) Advances from the TI/LC/CapEx Holdback for leasing commissions shall be made to pay
leasing commissions in accordance with written leasing commission agreements approved in
writing by Lender (however, Lender shall only have such right of approval with respect to
leasing commission agreements entered into after the Closing Date); however, Lender shall
not be obligated to make any advance from the TI/LC/CapEx Holdback for leasing commissions
for any portion of any leasing commission until the executed lease, as approved by Lender,
is delivered to Lender, at which time Lender shall make an advance from the TI/LC/CapEx
Holdback for leasing commissions of not more than fifty percent (50%) of the leasing
commission. The remaining portion of any leasing commission shall be advanced only when (i)
the tenant under the lease is in occupancy, has accepted the leased premises and is paying
rent under the lease, without offset, credit or defense, as evidenced by a tenant estoppel
certificate executed by such tenant, addressed to Lender, in form satisfactory to Lender,
and (ii) the brokers to whom such commissions are payable have acknowledged payment in full
of all commissions due with respect to the lease and have released Lender, Borrower, the
Project and the lease from all commissions due with respect to such lease (however, this
acknowledgment and release may be received immediately after such applicable remaining
portion for any leasing commission is advanced).

          4.4 Debt Service Coverage Ratio. At all times during the term of the Loan, the Debt
Service Coverage Ratio shall equal or exceed 1.25:1.00 as determined by Lender in its sole and
absolute discretion; provided, however, if the Maturity Date of the Loan is extended
pursuant to Section 2.4 above, at all times thereafter during the term of the Loan, the Debt
Service Coverage Ratio shall equal or exceed 1.30:1.00, as determined by Lender in its sole and
absolute discretion. If for any reason the applicable Debt Service Coverage Ratio is not met, then
Borrower shall, within thirty (30) days after Lender’s demand, immediately reduce the unpaid
principal balance of the Loan in an amount which would cause the applicable Debt Service Coverage
Ratio to be met.

-13-

 

ARTICLE V

TITLE INSURANCE

          5.1 Basic Insurance. Concurrently with the recording of the Mortgage, Borrower shall,
at Borrower’s sole cost and expense, deliver or cause to be delivered to Lender the Title Insurance
Policy issued by the Title Company (and such reinsurers and coinsurers as Lender may require) with
a liability limit of not less than the full amount of the Loan and with coverage and in form
satisfactory to Lender, insuring Lender’s interest under the Mortgage as a valid first lien on the
Project, together with such reinsurance or coinsurance agreements or endorsements to the Title
Insurance Policy as Lender may require, which policy shall contain only the Permitted Exceptions
from its coverage, and thereafter Borrower shall, at its own cost and expense, do all things
necessary to maintain the Mortgage as a valid first lien on the Property.

          5.2 Intentionally Omitted.

ARTICLE VI

OPERATION AND MAINTENANCE OF THE PROJECT

          6.1 Operation as First Class Commercial Office Buildings. At all times during the
term of this Agreement, Borrower shall itself (or through a manager satisfactory to Lender) operate
the Project as first class commercial office buildings.

          6.2 Maintenance. Borrower shall at all times maintain the Project in good condition
and repair (as is more fully set forth in the Mortgage).

ARTICLE VII

LIABILITY, RISK, AND FLOOD INSURANCE

     At all times throughout the Loan term Borrower shall, at its sole cost and expense, maintain
insurance, and shall pay, as the same becomes due and payable, all premiums in respect thereto,
including, but not necessarily limited to:

          7.1 Property. “Special Cause of Loss” insurance on the Improvements in an amount not
less than the full insurable value on a replacement cost basis of the insured Improvements and
personal property related thereto.

          7.2 Liability. Insurance protecting Borrower and Lender against loss or losses from
liability imposed by law or assumed in any written contract and arising from personal injury,
including bodily injury or death, having a limit of liability of not less than One Million Dollars
($1,000,000) (combined single limit for personal injury and property damage) and an umbrella excess
liability policy in an amount not less than Fifteen Million Dollars ($15,000,000) protecting
Borrower and Lender against any loss or liability or damage for personal injury, including bodily
injury or death, or property damage. Such policies must be written on an occurrence basis so as to
provide blanket contractual liability, broad form property damage coverage, and coverage for
products and completed operations.

-14-

 

          7.3 Additional Insurance. Borrower shall provide such other policies of insurance as
Lender may reasonably request in writing.

          7.4 Other Requirements. All required insurance shall be procured and maintained in
financially sound and generally recognized responsible insurance companies selected by Borrower and
subject to the approval of Lender. Such companies should be authorized to write such insurance in
the State of Texas. The company issuing the policies shall have a financial and performance rating
of “A-IX” or better by A.M. Best Co., in Bests’ Key Guide, or such other rating acceptable to
Lender. All property policies evidencing the required insurance shall name Lender as first
mortgagee, and all liability policies evidencing the insurance required shall name Lender as
additional insured, shall provide for payment to Lender (or its assignee, as directed by Lender) of
the net proceeds of insurance resulting from any claim for loss or damage thereunder, shall not be
cancelable as to the interests of Lender due to the acts of Borrower, and shall provide for at
least thirty (30) days prior written notice of the cancellation or modification thereof to Lender.

          7.5 Evidence. All policies of insurance, or certificates of insurance evidencing that
such insurance is in full force and effect, shall be delivered to Lender on or before the closing
date (together with proof of the payment of the premiums thereof). At least thirty (30) days prior
to the expiration or cancellation of each such policy, Borrower shall furnish Lender evidence that
such policy has been renewed or replaced in the form of a certificate reflecting that there is in
full force and effect, with a term covering the next succeeding calendar year, insurance of the
types and in the amounts required.

ARTICLE VIII

RIGHTS OF INSPECTION; AGENCY

     Lender, or its agent, shall have the right at any time and from time to time to enter upon the
Property for purposes of inspection and conducting Appraisals.

ARTICLE IX

REPRESENTATIONS AND WARRANTIES

          9.1 Consideration. As an inducement to Lender to execute this Agreement and to
disburse the proceeds of the Loan, Borrower represents and warrants to Lender that the following
statements set forth in this Article IX are true, correct and complete as of the date hereof and will be true, correct and complete as of the Closing Date and Borrower acknowledges
that the truth and accuracy of such representations and warranties is also a condition precedent to
Lender’s obligation to make each Loan advance.

          9.2 Organization, Powers and Good Standing.

          (a) Organization and Powers-Borrower. LLC Borrowers are each limited liability
companies, duly organized and validly existing under the laws of the State of Delaware and
are duly qualified to transact business as a limited liability company under the laws of the
State of Texas. LP Borrower is a limited partnership, duly

-15-

 

organized and validly existing
under the laws of the State of Texas and is duly qualified to transact business as a limited
partnership under the laws of the State of Texas. Borrower has all requisite power and
authority and rights to own and operate its properties, to carry on its businesses as now
conducted and as proposed to be conducted, and to enter into and perform this Agreement and
the other Loan Documents. The address of Borrower’s principal place of business is 1551 N.
Tustin Avenue, Suite 300, Santa Ana, California 92705.

          (b) Organization and Powers-Guarantor.

          (1) NNN Realty Advisors, Inc. is a corporation, duly organized and validly
existing under the laws of the State of Delaware. Guarantor has all requisite power
and authority and rights to own and operate its properties, to carry on its
businesses as now conducted and as proposed to be conducted, and to enter into and
perform the Environmental Indemnity and the other Loan Documents. The address of
Guarantor’s principal place of business is 1551 N. Tustin Avenue, Suite 300, Santa
Ana, California 92705.

          (2) G REIT Liquidating Trust dated January 22, 2008 is duly formed and validly
existing, and has the power to own its assets and to transact the business in which
it is now engaged.

          (c) Good Standing. LLC Borrowers have made all filings and are in good
standing in the States of Delaware and Texas and in each other jurisdiction in which the
character of the property they own or the nature of the business they transact makes such
filings necessary or where the failure to make such filings could have a materially adverse
effect on the business, operations, assets or condition (financial or otherwise) of LLC
Borrowers. LP Borrowers has made all filings and is in good standing in the State of Texas
and in each other jurisdiction in which the character of the property it owns or the nature
of the business it transacts makes such filings necessary or where the failure to make such
filings could have a materially adverse effect on the business, operations, assets or
condition (financial or otherwise) of LP Borrower. Guarantor has made all filings and is in
good standing in the State of Delaware and the State of Maryland and in each other
jurisdiction in which the character of the property it owns or the nature of the business it
transacts makes such filings necessary or where the failure to make such filings could have
a materially adverse effect on the business, operations, assets or condition (financial or
otherwise) of Guarantor.

          (d) Non-foreign Status. No Borrower is a “foreign corporation,” “foreign
partnership,” “foreign trust,” or “foreign estate,” as those terms are defined in the
Internal Revenue Code and the regulations promulgated thereunder. Each Borrower’s U.S.
employer identification number is as set forth on the signature page hereof.

-16-

 

          9.3 Authorization of Loan Documents.

          (a) Authorization. The execution, delivery and performance of the Loan
Documents by each Borrower are within such Borrower’s powers and have been duly authorized
by all necessary action by such Borrower.

          (b) No Conflict. The execution, delivery and performance of the Loan Documents
by each Borrower will not violate (i) any Borrower’s operating agreement or partnership
agreement or articles of organization; or (ii) to each Borrower’s knowledge, any legal
requirement affecting any Borrower or any of its properties; or (iii) any agreement to which
any Borrower is bound or to which it is a party and will not result in or require the
creation (except as provided in or contemplated by this Agreement) of any lien upon any of
such properties.

          (c) Binding Obligations. This Agreement and the other Loan Documents have been
duly executed by each Borrower, and are legally valid and binding obligations of each
Borrower, enforceable against each Borrower in accordance with their terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ rights generally and by general principles of equity.

          9.4 Compliance with Laws. The Property consists of a legal and separate parcel or
parcels under applicable law and for tax assessment purposes. The Improvements were constructed in
compliance with, and the Project presently complies fully with, all restrictive covenants and all
applicable laws and regulations, including, without limitation, all building codes, environmental
laws and the Americans With Disabilities Act (Public Law 101-336).

          9.5 No Material Defaults. There exists no material violation of or material default
by any Borrower and no event has occurred which, upon the giving of notice or the passage of time,
or both, would constitute a material default with respect to (a) the terms of any instrument
evidencing or securing any material indebtedness secured by the Project, (b) any material lease or
other agreement affecting the Project to which any Borrower is a party, (c) to Borrower’s
knowledge, any material license, permit, statute, ordinance, law, judgment, order, writ,
injunction, decree, rule or regulation of any Governmental Authority, or any determination or award
of any arbitrator to which any Borrower or the Project may be bound, or (d) any mortgage,
instrument, agreement or document by which any Borrower, or any of its properties is bound: (i)
which involves any Loan Document, (ii) that might materially and adversely affect the ability of
any Borrower to perform its obligations under any of the Loan Documents, any Swap Contracts or any
other material instrument, agreement or document to which it is a party, or (iii) which might
adversely affect the first priority of the liens created by this Agreement or any of the Loan
Documents.

          9.6 Litigation; Adverse Facts. No Borrower has knowledge of any action, suit,
investigation, proceeding or arbitration (whether or not purportedly on behalf of Borrower) at law
or in equity or before or by any foreign or domestic court or other governmental entity (a “Legal
Action”), pending or, to the knowledge of Borrower, overtly threatened against or affecting any
Borrower or any of its assets which could reasonably be expected to result in any

-17-

 

material adverse
change in the business, operations, assets (including the Project) or condition (financial or
otherwise) of any Borrower or would materially and adversely affect any Borrower’s ability to
perform its obligations under the Loan Documents. No Borrower is (a) in violation of any
applicable law which violation materially and adversely affects or may materially and adversely
affect the business, operations, assets (including the Project) or condition (financial or
otherwise) of any Borrower, (b) subject to, or in default with respect to any other legal
requirement that would have a materially adverse effect on the business, operations, assets
(including the Project) or condition (financial or otherwise) of any Borrower, or (c) in default
with respect to any agreement to which Borrower is a party or to which any Borrower is bound.
There is no Legal Action pending or, to the knowledge of any Borrower, threatened against or
affecting any Borrower questioning the validity or the enforceability of this Agreement or any of
the other Loan Documents.

          9.7 Title to Properties; Liens. Borrower has good and legal title to all properties
and assets reflected in its most recent balance sheet delivered to Lender, except for assets
disposed of in the ordinary course of business since the date of such balance sheet. Borrower is
the sole owner of, and has good and marketable title to the fee interest in the Property, and the
Improvements and all other real property described in the Mortgage, free from any adverse lien,
security interest or encumbrance of any kind whatsoever, excepting only (a) liens and encumbrances
shown on the Title Policy, (b) liens and security interests in favor of Lender, and (c) other
matters which have been approved in writing by Lender.

          9.8 Disclosure. There is no fact known to any Borrower that materially and adversely
affects the business, operations, assets or condition (financial or otherwise) of any Borrower that
has not been disclosed in this Agreement or in other documents, certificates and written statements
furnished to Lender in connection herewith.

          9.9 Payment of Taxes. All tax returns and reports of any Borrower required to be
filed by it have been timely filed, and all taxes, assessments, fees and other governmental charges
upon Borrower and upon its properties, assets, income and franchises which are due and payable have
been paid when due and payable.

          9.10 Securities Activities. No Borrower is not engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of purchasing or carrying
any margin stock (as defined within Regulations G, T and U of the Board of Governors of the Federal
Reserve System), and none of the value of any Borrower’s assets consists of such margin stock. No
part of the Loan will be used to purchase or carry any margin stock or to extend credit to others
for that purpose or for any other purpose that violates the provisions of Regulations U or X of
said Board of Governors.

          9.11 Government Regulations. No Borrower is subject to regulation under the
Investment Company Act of 1940, the Federal Power Act, the Public Utility Holding Company Act of 1935, the Interstate Commerce Act or to any federal or state statute or regulation
limiting its ability in incur indebtedness for money borrowed.

          9.12 Rights to Project Agreements, Permits and Licenses. Borrower is the true owner
of all rights in and to all existing agreements, permits and licenses relating to the Project,

-18-

 

and
will be the true owner of all rights in and to all future agreements, permits and licenses relating
to the Project.

          9.13 Access. All streets and easements necessary for the operation of the Project are
available to the boundaries of the Property.

          9.14 Use of Project. To Borrower’s knowledge, the Improvements and the Property, and
their use as commercial office buildings, comply fully with all applicable laws and restrictive
covenants, including, without limitation, all zoning laws (except for certain matters which do not
comply with current ADA and fire code requirements, but which complied with previous requirements,
and with respect to which the city of Hayward has waived the current non-compliance).

          9.15 Financial Condition. The financial statements and all financial data previously
delivered to Lender in connection with the Loan and/or relating to Borrower are true, correct and
complete in all material respects. Such financial statements fairly present the financial position
of the parties who are the subject thereof as of the date thereof. No material adverse change has
occurred in such financial position, no borrowings have been made by any Borrower since the date
thereof which are secured by, or might give rise to, a lien or claim against the Project, the
proceeds of this Loan, or other assets of any Borrower.

          9.16 Personal Property. Borrower is now and shall continue to be the sole owner of
the personal property constituting part of the Collateral free from any adverse lien, security
interest or adverse claim of any kind whatsoever, except for liens or security interests in favor
of Lender.

          9.17 No Condemnation. No condemnation proceedings or moratorium is pending or, to
Borrower’s knowledge, threatened against the Project or the Property (or any portion thereof) which
would materially impair the use, occupancy or full operation of the Project in any manner
whatsoever.

          9.18 Other Loan Documents. Each of the representations and warranties of Borrower
contained in any of the other Loan Documents is true and correct in all material respects. All of
such representations and warranties are incorporated herein for the benefit of Lender.

          9.19 Guarantor. Each Guarantor has full right, power and authority to execute,
deliver and carry out the terms of the Guaranty and Environmental Indemnity and, when executed and
delivered pursuant thereto, the Guaranty and the Environmental Indemnity will constitute the valid,
binding and legal obligations of each Guarantor, enforceable against each Guarantor in accordance
with its terms subject to bankruptcy, insolvency, moratorium and similar laws affecting creditors
generally and to general principles of equity.

          9.20 No Lease Defaults. There are no defaults by Borrower, to Borrower’s knowledge,
or any tenant under any Lease.

-19-

 

          9.21 Defects. To Borrower’s knowledge, there are no defects, facts or conditions
affecting the Project which would make it unsuitable for its present use and operation as
commercial office buildings.

          9.22 ERISA. As of the Closing Date and throughout the term of the Loan, (a) Borrower
is not and will not be an “employee benefit plan” as defined in ERISA, and (b) the assets of
Borrower do not and will not constitute “plan assets” of one or more such plans for purposes of
Title I of ERISA.

ARTICLE X

COVENANTS OF BORROWER

          10.1 Consideration. As an inducement to Lender to execute this Agreement and to make
each disbursement of the Loan, Borrower hereby covenants as set forth in this Article X, which
covenants shall remain in effect so long as the Note shall remain unpaid or any obligation of
Borrower under any other Loan Documents or under any Swap Contracts remain outstanding or
unperformed.

          10.2 Existence. Each Borrower shall and shall cause each Guarantor (if other than an
individual) to continue to be validly existing under the laws of the jurisdiction of its
organization.

          10.3 Books and Records; Access by Lender. Borrower shall maintain a single, standard,
modern system of accounting (including, without limitation, a single, complete and accurate set of
books and records of its assets, business, financial condition, operations, property, prospects and
results of operation in accordance with good accounting practice and on a cash basis). During
business hours and upon reasonable advance written notice, Borrower will give representatives of
Lender access to all assets, books, documents, property, and records of Borrower and will permit
such representatives to inspect such assets and property and to audit, copy, examine and make
excerpts from such books, documents and records.

          10.4 No Encumbrances. Borrower will not permit any lien, levy, attachment or
restraint to be made or filed against the Project, or any portion thereof, which is not released or
bonded over (to Lender’s satisfaction) within fifteen (15) days, or permit any receiver, trustee or
assignee for the benefit of creditors to be appointed to take possession of the Project or any
portion thereof, except for lien claims filed or asserted against the Property or the Project and
concerning which Borrower is in full compliance with the applicable provisions of the Mortgage.

          10.5 Compliance with Laws. Borrower shall comply with all applicable laws, statutes,
regulations, codes and requirements, as amended from time to time (including, without limitation,
all environmental laws, building, zoning and use laws, requirements, regulations and ordinances,
and the Americans With Disabilities Act), all CC&Rs and all obligations created by private
contracts and leases which affect ownership, development, construction, equipping, fixturing, use
or operation of the Project. If requested by Lender, Borrower shall deliver to Lender, promptly after receipt thereof, copies of all permits and approvals received from
Governmental Authorities relating to the development, construction, use, occupancy or operation

-20-

 

of the Project to the extent such items are in Borrower’s possession or are reasonably obtainable by
Borrower.

          10.6 Personal Property. Borrower will not install materials, personal property,
equipment or fixtures subject to any security agreement or other agreement or contract wherein the
right is reserved to any person, firm or corporation to remove or repossess any such materials,
equipment for fixtures, or whereby title to any of the same is not completely vested in Borrower at
the time of installation, other than medical equipment purchased with purchase money financing,
without Lender’s prior written consent.

          10.7 Assessments. Borrower shall pay or discharge all lawful claims, including taxes,
assessments and governmental charges or levies imposed upon Borrower or its income or profits or
upon any property (including the Project) belonging to Borrower (all the above collectively
hereinafter referred to as “Impositions”), prior to the date upon which penalties attach thereto,
and submit evidence satisfactory to Lender confirming the payment of all Impositions against the
Project. Borrower has the right before any delinquency occurs to contest or object to the amount
or validity of any such Imposition by appropriate proceedings, but this will not be deemed or
construed in any way as relieving, modifying or extending Borrower’s covenant to pay any such
Imposition at the time and in the manner provided in this Section 10.7, unless Borrower has given
prior written notice to Lender of Borrower’s intent to so contest or object to an Imposition, and
unless, at Lender’s sole option, (i) Borrower demonstrates to Lender’s reasonable satisfaction that
the proceedings to be initiated by Borrower will conclusively operate to prevent the sale of the
Collateral, or any part thereof, to satisfy such Imposition prior to final determination of such
proceedings; or (ii) Borrower furnishes a good and sufficient bond or surety as requested by and
reasonably satisfactory to Lender; or (iii) Borrower demonstrates to Lender’s reasonable
satisfaction that Borrower has provided as good and sufficient undertaking as may be required or
permitted by law to accomplish a stay of any such sale.

          10.8 Information and Statements. Borrower shall furnish to Lender:

          (a) as soon as the same are available, and in any event within one hundred twenty (120)
days after the end of each fiscal year of Borrower, certified by an officer of Borrower, a
copy of the current company-prepared financial statements of Borrower, prepared in
accordance with sound accounting principles, consistently applied, which shall consist of
(1) a balance sheet as of the end of the relevant fiscal year, (2) statements of income and
expenses of Borrower for such fiscal year (together, in each case, with the comparable
figures for the previous fiscal year), (3) statements of income and expenses and changes in
financial position of the Project for such fiscal year (together, in each case with
comparable figures for the corresponding fiscal year), and (4) cash flow statements of
Borrower;

          (b) copies of filed federal income tax returns of Borrower and each Guarantor for each
taxable year (with all K-1s and other forms and supporting schedules attached), on or before
October 30 of each year;

-21-

 

          (c) a copy of the filed Form 10-K of each Guarantor for each fiscal year, within one
hundred twenty (120) days after each Guarantor’s fiscal year end;

          (d) as soon as the same are available, and in any event within forty-five (45) days
after the end of each fiscal quarter of each Guarantor, certified by an officer of each
Guarantor, (i) a copy of the current company-prepared financial statements of each
Guarantor, prepared upon a GAAP accrual basis, and (ii) a certification that each Guarantor
has met the financial covenants as set forth in Section 14 and 15 of the Guaranty, certified
by an officer of each Guarantor. However, the financial statements delivered by Trust
Guarantor in accordance with this Section 10.8(d) will consist of a Statement of Net Assets
and a Statement of Changes in Net Assets, prepared on a liquidation GAAP basis.

          (e) as soon as the same are available, and in any event within sixty (60) days after
the end of each fiscal quarter, deliver to Lender a detailed rent roll, in form and detail
reasonably satisfactory to Lender, for the Project for the preceding fiscal quarter; and

          (f) such other information concerning Borrower, Guarantor, the Project, and the assets,
business, financial condition, operations, property, prospects, and results of operations of
Borrower and Guarantor as Lender reasonably requests from time to time.

          10.9 Representations and Warranties. Until repayment of the Note and all other
obligations secured by the Mortgage, the representations and warranties of Article IX shall remain
true and complete in all material respects.

          10.10 Trade Names. Borrower shall immediately notify Lender in writing of any change
in the legal, trade or fictitious business names used by Borrower and shall, upon Lender’s request,
execute any additional financing statements and other certificates necessary to reflect the change
in trade names or fictitious business names.

          10.11 Further Assurances. Borrower shall execute and deliver from time to time,
promptly after any request therefor by Lender, any and all instruments, agreements and documents
and shall take such other action as may be necessary or desirable in the opinion of Lender to
maintain, perfect or insure Lender’s security provided for herein and in the other Loan Documents,
including, without limitation, the authorization of UCC-1 renewal statements, the execution of such
amendments to the Mortgage and the other Loan Documents and the delivery of such endorsements to
the Title Company, all as Lender shall reasonably require, and Borrower shall pay all fees and
expenses (including reasonable attorneys’ fees) related thereto. Promptly upon the request of
Lender, Borrower shall execute and deliver a Certification of Non- Foreign Status.

          10.12 Notice of Litigation.

          (a) Borrower shall give, or cause to be given, prompt written notice to Lender of (a)
any action or proceeding which is instituted by or against any Borrower or Trust Guarantor
in any Federal or state court or before any commission or other

-22-

 

regulatory body, Federal, state or local, foreign or domestic, or any such proceedings
which are threatened in writing against it, which, if adversely determined, would be likely
to have a material and adverse effect upon any Borrower’s or Trust Guarantor’s (as
applicable) business, operations, properties, assets, management, ownership or condition
(financial or otherwise), (b) any other action, event or condition of any nature which may
have a material and adverse effect upon any Borrower’s or any Guarantor’s (as applicable)
business, operations, management, assets, properties, ownership or condition (financial or
otherwise), or which, with notice or lapse of time or both, would constitute an Event of
Default or a default under any other contract, instrument or agreement to which Borrower or
any Guarantor is a party to by or to which Borrower or any Guarantor or any of their
properties or assets may be bound or subject, and (c) any actions, proceedings or notices
adversely affecting the Project or Lender’s interest therein by any zoning, building or
other municipal officers, offices or departments having jurisdiction with respect to the
Project.

          (b) Borrower shall give, or cause to be given, prompt written notice to Lender of (a)
any action or proceeding which is instituted by or against Triple Net Guarantor in any
Federal or state court or before any commission or other regulatory body, Federal, state or
local, foreign or domestic, or any such proceedings which are threatened in writing against
it, which, if adversely determined, would be likely to have a material and adverse effect
upon its business, operations, properties, assets, management, ownership or condition
(financial or otherwise).

          10.13 Good Standing. LLC Borrowers shall each maintain their good standing in
Delaware and Texas and preserve their existence and all rights and franchises material to their
business, and LP Borrower shall maintain its good standing in Texas and preserve its existence and
all rights and franchises material to its business. Each Borrower shall cause Guarantor (if other
than an individual) to maintain and preserve its existence.

          10.14 Hazardous Materials. Borrower will not use, and will not permit the use of, any
Hazardous Substance (as defined in the Environmental Indemnity) in connection with the Project
except as permitted by applicable law and the Environmental Indemnity.

          10.15 Intentionally Omitted.

          10.16 Government Regulation. No 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 any Borrower or from otherwise conducting business with any Borrower, or (b)
fail to provide documentary and other evidence of each Borrower’s identity as and when requested by
Lender at any time to enable Lender to verify each Borrower’s identity or to comply with any
applicable law or regulation, including, without limitation, Section 326 of the USA Patriot Act of
2001, 31 U.S.C. Section 5318.

          10.17 Negative Covenants. Borrower shall not, without the prior written consent of
Lender in Lender’s sole and absolute discretion, do or permit to be done any of the following:

-23-

 

          (a) Indebtedness. Borrower shall not incur or become liable for any
Indebtedness, whether secured or unsecured, in favor of any Person, other than:

          (1) the Loan;

          (2) trade debt incurred in the ordinary course of each Borrower’s business and
paid in the ordinary course of each Borrower’s business and in any event in not more
than sixty (60) days; and

          (3) obligations under Swap Contracts permitted under Section 12.27 hereof.

          (b) Liens and Encumbrances. No Borrower shall create, incur or suffer to exist
any lien or encumbrance (which is not released or bonded over, to Lender’s satisfaction,
within fifteen (15) days) in, of or on any of the property of such Borrower except for
Permitted Exceptions.

          (c) Fundamental Changes. Borrower shall not, and Borrower shall not permit
Guarantor to, dissolve or liquidate or become a party to any merger or consolidation.

          (d) Distributions. No Borrower shall declare or pay any distributions or
redeem, repurchase or otherwise acquire or retire any of its capital stock or other
ownership interest at any time outstanding, except that, for so long as no Event of Default
or Unmatured Event of Default has occurred and is continuing, each Borrower may make
distributions to its members so long as after giving effect to any such distribution no
Event of Default or Unmatured Event of Default shall have occurred.

          (e) Affiliates. No Borrower shall enter into any transaction (including the
purchase or sale of any property or service) with, or make any payment or transfer to, any
Affiliate of any Borrower except in the ordinary course of business and pursuant to the
reasonable requirements of such Borrower’s business and upon fair and reasonable terms no
less favorable to Borrower than Borrower would obtain in a comparable arms-length
transaction.

          (f) Amendments to Organizational Documents. No Borrower shall allow any
amendments to be made in the terms of any Borrower’s or any Guarantor’s organizational
documents which would adversely effect in any material respect Borrower, Guarantor, the
Project, any Borrower’s or any Guarantor’s ability to perform their obligations under the
Loan Documents or Lender’s security interests.

          (g) No Other Business. Borrower will not engage in any business other than the
ownership, management, and operation of the Project and Borrower will conduct and operate
its business as presently conducted and operated.

          (h) No Commingling. No Borrower shall commingle its funds and other assets
with those of any Borrower, any Affiliate, Guarantor, any of Borrower’s members, managers,
partners or shareholders or any other Person.

-24-

 

          (i) Changes. Borrower will not change or in any manner cause or seek a change
in any laws, requirements of Governmental Authorities or obligations created by private
contracts and leases which now or hereafter may significantly adversely affect the
ownership, use or operation of the Project, without the prior written consent of Lender.

          (j) Change in Ownership. Borrower will not suffer to occur or exist, whether
occurring voluntarily or involuntarily, any change in, or lien or encumbrance with respect
to the legal or beneficial ownership of any interest in Borrower, any member in Borrower or
any other direct or indirect ownership interest in Borrower or the members in Borrower,
except as permitted in the Loan Documents.

          (k) Leases. Borrower shall not enter into, amend or modify any lease in excess
of 5,000 square feet (each such lease, a “Material Lease”) covering any portion of the
Project without Lender’s prior written consent, in Lender’s sole discretion; provided,
however, Borrower shall also not enter any lease which is not a Material Lease for which the
rent payable under such lease is not a market rent or the terms are not otherwise market
without Lender’s prior written consent, in Lender’s sole discretion. Borrower shall furnish
to Lender, upon execution, a fully executed copy of each lease entered into by Borrower,
together with all exhibits and attachments thereto and all amendments and modifications
thereof. Borrower shall provide Lender with a copy of each proposed Material Lease and with
financial information on the proposed tenant to aid Lender in determining whether it will
consent thereto. Lender may declare each such Material Lease (or any other lease) to be
prior or subordinate to the Mortgage, at Lender’s sole option.

          10.18 TIC Agreement. The TIC Agreement and any rights of Borrower thereunder shall be
subordinate to the Mortgage pursuant to the terms of the TIC Agreement. A memorandum of the TIC
Agreement shall be duly recorded in the Official Records of Tarrant County, Texas substantially
concurrently with, but subsequent to the recording of, the Mortgage. The TIC Agreement shall not
be amended, modified or terminated without Lender’s prior, written consent.

          10.19 Partition. So long as any portion of the Loan remains outstanding, no Person comprising
the Borrower shall seek the partition and sale of the Project (or any interest therein), whether
voluntarily, by court order or otherwise. 

          10.20 Bankruptcy by a Borrower. If any Person comprising the Borrower becomes the subject of any
voluntary or involuntary case or proceeding which seeks liquidation, reorganization or other relief
with respect to its debts or other liabilities under any bankruptcy, insolvency or other similar
law now or hereafter in effect, then the other Persons comprising the Borrower shall have the right
to purchase the bankrupt Person’s interest in the Project at fair market value based on an
independent MAI appraisal, and such other Persons shall promptly and diligently pursue such purchase in accordance
with the TIC Agreement.

-25-

 

          10.21 Post-Closing Deliveries. Borrower shall, by February 29, 2008, cause the
fully-executed and notarized (by each Borrower) TIC Agreement to be recorded in the Official
Records of Tarrant County, Texas.

ARTICLE XI

EVENTS OF DEFAULT AND REMEDIES

          11.1 Events of Default. The occurrence of any one or more of the following shall
constitute an Event of Default under this Agreement:

          (a) Failure of Borrower or Guarantor to pay any amounts due pursuant to this Agreement,
the Note or the Loan Documents (including, without limitation, principal, interest, fees, or
other amounts) within ten (10) days after the date such amount is due.

          (b) Failure by Borrower or Guarantor to pay any amount (other than principal or
interest) when due under this Agreement or any other Loan Document and the expiration of ten
(10) days after written notice of such failure by Lender to Borrower.

          (c) Failure by Borrower, Guarantor or any other Person referred to therein to comply
with any of the provisions of Article VII or Sections 10.4, 10.16, 10.17(b), (c), (d) and
(j), or 10.21.

          (d) Failure by Borrower or Guarantor to perform any other obligation, or to comply with
any term or condition, applicable to Borrower or Guarantor under any Loan Document that is
not referred to in another Section of this Section 11.1 and the expiration of thirty (30)
days after written notice of such failure by Lender to Borrower; 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.

          (e) Any representation or warranty by Borrower or Guarantor in any Loan Document is
materially false, incorrect or misleading as of the date made or renewed.

          (f) The occurrence of any event (including, without limitation, a change in the
financial condition, business, or operations of Borrower or Guarantor for any reason
whatsoever) that materially and adversely affects the ability of Borrower or Guarantor to
perform any of its obligations under the Loan Documents or under any Swap Contracts.

          (g) Borrower or Guarantor (i) is unable or admits in writing any Borrower’s or any
Guarantor’s inability to pay its monetary obligations as they become due, (ii) fails to pay
when due any monetary obligation, whether such obligation be direct

-26-

 

or contingent, to any
person in excess of $250,000, (iii) makes a general assignment for the benefit of creditors,
or (iv) applies for, consents to, or acquiesces in, the appointment of a trustee, receiver,
or other custodian for any Borrower or any Guarantor or the property of any Borrower or any
Guarantor or any part thereof, or in the absence of such application, consent, or
acquiescence a trustee, receiver, or other custodian is appointed for any Borrower or any
Guarantor or the property of any Borrower or any Guarantor or any part thereof, and such
appointment is not discharged within sixty (60) days.

          (h) Commencement of any case under the Bankruptcy Code, Title 11 of the United State
Code, or commencement of any other bankruptcy arrangement, reorganization, receivership,
custodianship, or similar proceeding under any federal, state, or foreign law by any
Borrower or any Guarantor.

          (i) If a receiver, trustee or similar officer shall be appointed for any Borrower or
any Guarantor or for all or any substantial part of the property of any Borrower or any
Guarantor without the application or consent of Borrower or Guarantor and such appointment
shall continue undischarged for a period of sixty (60) days (whether or not consecutive); or
any bankruptcy, insolvency, reorganization, arrangements, readjustment of debt, dissolution,
liquidation or similar proceedings shall be instituted (by petition, application, or
otherwise) against any Borrower or any Guarantor and shall remain undismissed for a period
of sixty (60) days (whether or not consecutive).

          (j) Any material litigation or proceeding is commenced before any Governmental
Authority against or affecting any Borrower or the property of any Borrower or any part
thereof and such litigation or proceeding is not defended diligently and in good faith by
Borrower. Any litigation or proceeding is commenced before any Governmental Authority
against or affecting any Guarantor which if decided against any Guarantor would materially
adversely affect the Project or any Guarantor’s ability to perform its obligations under the
Guaranty, and such litigation or proceeding is not defended diligently and in good faith by
Guarantor.

          (k) A final judgment or decree for monetary damages or a monetary fine or penalty (not
subject to appeal or as to which the time for appeal has expired) entered against any
Borrower or any Guarantor by any Government Authority, which together with the aggregate
amount of all other such judgments and decrees against Borrower or Guarantor that remain
unpaid or that have not been discharged or stayed, exceeds $250,000.00, is not paid and
discharged or stayed within thirty (30) days after the entry thereof.

          (l) Commencement of any action or proceeding which seeks as one of its remedies the
dissolution of any Borrower.

          (m) All or any part of the property of any Borrower, or all or any part of the property
of any Guarantor valued in excess of $500,000 in the aggregate, is attached, levied upon, or
otherwise seized by legal process, and such attachment, levy, or seizure is not quashed,
stayed, or released within thirty (30) days of the date thereof.

-27-

 

          (n) The occurrence of any Accelerating Transfer (as defined in the Mortgage), unless
Lender has consented to such Accelerating Transfer in its sole and absolute discretion, as
more particularly provided in the Mortgage.

          (o) The occurrence of any Event of Default, as such term is defined in any other Loan
Document, after taking into account applicable cure periods.

          (p) (i) A default shall occur in the payment when due (after giving effect to any
applicable notice and grace periods), whether by acceleration or otherwise, with respect to
indebtedness of any Borrower or any Guarantor in an aggregate amount exceeding $50,000; or
(ii) a default shall occur in the performance or observance of any obligation or condition
with respect to indebtedness in an aggregate amount exceeding $50,000 if the effect of such
default described in this clause (ii) is to permit the acceleration of the maturity of such
indebtedness.

          (q) Any Borrower, any Guarantor or any Person on behalf of Borrower or Guarantor shall
claim or assert that the Loan Documents are not legal, valid and binding agreements
enforceable against Borrower or Guarantor in accordance with their respective terms; or the
Loan Documents shall in any way be terminated (except in accordance with their terms) or
become or be judicially declared ineffective or inoperative or shall in any way cease to
give or provide the respective liens, security interests, rights, titles, interests,
remedies, powers or privileges intended to be created thereby.

          (r) Any Governmental Authorities take or institute action, which in the reasonable
opinion of Lender, will adversely affect any Borrower’s or any Guarantor’s ability to repay
the Loan or which will materially affect any Borrower’s or any Guarantor’s condition or
operations, if such action remains effective for more than thirty (30) days.

          (s) Lender fails to have a legal, valid, binding, and enforceable first priority lien
acceptable to Lender (subject to Permitted Exceptions) on the Property, Improvements and all
other collateral.

          (t) Failure of Guarantor to perform or comply with any financial covenant or agreement
contained in the Environmental Indemnity which remains uncured for thirty (30) days after
written notice of such failure by Lender to Guarantor.

          (u) Any amendment, modification or termination of the TIC Agreement without Lender’s
prior written consent.

          (v) All or any portion of the Project (or any interest therein) is partitioned, whether
voluntarily, by court order, or otherwise, or any action is commenced by or on behalf of any Person seeking a partition of all or any portion of
the Project, or any interest therein.

-28-

 

          11.2 Remedies.

          (a) Notwithstanding any provision to the contrary herein or any of the other Loan
Documents, upon the happening of any Event of Default under this Agreement, or upon an Event
of Default under any of the other Loan Documents: (i) Lender’s obligation to make further
advances of the Loan shall be suspended, and (ii) if the Event of Default shall not be cured
within the applicable notice and cure periods, then Lender shall, at its option, have the
remedies provided in the Loan Document breached by Borrower, including, without limitation,
the option to declare all outstanding indebtedness to be immediately due and payable without
presentment, demand, protest or notice of any kind, and the following remedies: Lender’s
obligation to make further disbursements to Borrower shall terminate; Lender may, at its
option, apply any of Borrower’s funds in its possession to the outstanding indebtedness
under the Note whether or not such indebtedness is then due; and Lender may exercise all
rights and remedies available to it under any or all of the Loan Documents. All sums
expended by Lender for such purposes shall be deemed to have been disbursed to and borrowed
by Borrower and should be secured by the Mortgage on the Property.

          (b) Effective from and after the occurrence of and during the continuance of an Event
of Default, Borrower hereby constitutes and appoints Lender, or an independent contractor
selected by Lender, as its true and lawful attorney-in-fact with full power of substitution
for the performance of each Borrower’s obligations under this Agreement in the name of
Borrower, and hereby empower said attorney-in-fact to do any or all of the following upon
the occurrence of an Event of Default:

          (1) to employ attorneys to defend against attempts to interfere with the
exercise of power granted hereby;

          (2) to pay, settle or compromise all existing bills and claims which are or may
be liens against the Property, the Improvements or the Project;

          (3) to execute all applications and certificates in the name of Borrower, which
may be required by any other contract;

          (4) to prosecute and defend all actions or proceedings in connection with the
Project and to take such action, require such performance and do any and every other
act as is deemed necessary with respect to the operation of the Project which any
Borrower might do on its own behalf;

          (5) to let new or additional contracts to the extent not prohibited by their
existing contracts; and

          (6) to take such action and require such performance as it deems necessary
under any of the bonds or insurance policies to be furnished hereunder, to make
settlements and compromises with the sureties or insurers thereunder, and in connection therewith to execute instruments of release and
satisfaction.

-29-

 

     It is understood and agreed that the foregoing power of attorney shall be deemed to be a power
coupled with an interest which cannot be revoked until repayment of the Loan and performance of all
other obligations under the Loan Documents or any Swap Contracts entered into pursuant to Section
12.27 hereof.

ARTICLE XII

MISCELLANEOUS

          12.1 Assignment. Borrower shall not assign any of its rights under this Agreement
without the prior written consent of Lender, which may be granted or withheld in the sole and
absolute discretion of Lender.

          12.2 Notices. All demands or notices required or which any party desires to give
hereunder or under any other Loan Document shall be in writing (including, without limitation,
telecopy, telegraphic, telex, or cable communication) and, unless otherwise specifically provided
in such other Loan Document, shall be deemed sufficiently given or furnished if delivered by
personal delivery, by nationally recognized overnight courier service or by certified United States
mail, postage prepaid, addressed to the party to whom directed at the applicable address specified
at the end of this paragraph (unless changed by similar notice in writing given by the particular
party whose address is to be changed) or by facsimile. Any demand or notice shall be deemed to
have been given either at the time of personal delivery or, in the case of courier or mail, as of
the date of first attempted delivery at the address and in the manner provided herein, or, in the
case of facsimile, upon receipt; provided that service of a demand or notice required by any
applicable statute shall be considered complete when the requirements of that statute are met.
Notwithstanding the foregoing, no notice of change of address shall be effective except upon actual
receipt. This Section shall not be construed in any way to affect or impair any waiver of notice
or demand provided in this Agreement or in any other Loan Document or to require giving of notice
or demand to or upon any Person in any situation or for any reason. All notices sent to Borrower
may be sent to NNN Western Place, LLC and delivery of any notices to NNN Western Place, LLC in
compliance with this Section 12.2 shall be deemed to be delivery of notice to each Borrower. The
addresses for notices are as follows:

	 	 	 	 	 
	 

	 	If to Lender:
	 	Wachovia Bank, National Association
	 

	 	 	 	Real Estate Financial Services
	 

	 	 	 	General Banking Group
	 

	 	 	 	Mail Code: CA 6233
	 

	 	 	 	15750 Alton Parkway
	 

	 	 	 	Irvine, California 92618
	 

	 	 	 	Attn: Anne McNeil

-30-

 

	 	 	 	 	 
	 

	 	If to Borrower:
	 	NNN Western Place, LLC
	 

	 	 	 	NNN Western Place 1, LLC
	 

	 	 	 	NNN Western Place 2, LLC
	 

	 	 	 	NNN Western Place 3, LLC
	 

	 	 	 	NNN Western Place 4, LLC
	 

	 	 	 	NNN Western Place 5, LLC

NNN Western Place 6, LLC
	 

	 	 	 	NNN Western Place 7, LLC
	 

	 	 	 	GREIT — Western Place, LP
	 

	 	 	 	c/o Grubb & Ellis Realty Investors, LLC
	 

	 	 	 	1551 N. Tustin Avenue, Suite 300
	 

	 	 	 	Santa Ana, California 92705
	 

	 	 	 	Attn: Scott Peters
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Gregory Kaplan, PLC
	 

	 	 	 	7 East Second Street
	 

	 	 	 	Richmond, Virginia
	 

	 	 	 	Attn: Joseph J. McQuade, Esq.
	 

	 	 	 	Telephone: (804) 525-1785
	 

	 	 	 	Facsimile: (804) 525-1885

          12.3 Authority to File Notices. Borrower irrevocably appoints Lender at its
attorney-in-fact, with full power of substitution, to file for record, at Borrower’s cost and
expense and in Borrower’s name, any notices of completion, notices of cessation of labor, or any
other notices that Lender considers necessary or desirable to protect its security.

          12.4 Inconsistencies with the Loan Documents. In the event of any inconsistencies
between the terms of this Agreement and any terms of any of the Loan Documents, the terms of this
Agreement shall govern and prevail.

          12.5 No Waiver. No disbursement of proceeds of the Loan shall constitute a waiver of
any conditions to Lender’s obligation to make further disbursements nor, in the event Borrower is
unable to satisfy any such conditions, shall any such waiver have the effect of precluding Lender
from thereafter declaring such inability to constitute a default under this Agreement.

          12.6 Lender Approval of Instruments and Parties. All proceedings taken in accordance
with transactions provided for herein; all surveys, appraisals and documents required or
contemplated by this Agreement and the persons responsible for the execution and preparation
thereof; shall be satisfactory to and subject to reasonable approval by Lender. Lender’s counsel
shall be provided with copies of all documents which they may reasonably request in connection with
the Agreement.

          12.7 Lender Determination of Facts. Lender shall at all times be free to establish
independently, to its satisfaction, the existence or nonexistence of any fact or facts, the
existence or nonexistence of which is a condition of this Agreement.

-31-

 

          12.8 Incorporation of Preamble, Recitals and Exhibits. The preamble, recitals and
exhibits hereto are hereby incorporated in to this Agreement.

          12.9 Third-Party Consultants. Lender may hire such third-party consultants as it
deems necessary, the costs of which shall be paid by Borrower, to provide the following services:
(a) perform environmental assessments; (b) to provide Appraisals; and (c) perform such other
services as may, from time to time, be reasonably required by Lender. This obligation on the part
of Borrower shall survive the closing of the Loan and the repayment thereof.

          12.10 Payment of Expenses. Borrower shall pay all taxes and assessments and all
expenses, charges, costs and fees provided for in this Agreement or relating to the Loan or the
Project, including, without limitation, any fees incurred for recording or filing any of the Loan
Documents, title insurance premiums and charges, tax service contract fees, fees of any
consultants, Lender’s processing and closing fees, Lender’s inspection fees, reasonable fees and
expenses of Lender’s counsel (and any counsel to any assignee of Lender to which the Loan Documents
are pledged as security), printing, photostating and duplicating expenses, air freight charges,
escrow fees, costs of surveys, premiums of hazard insurance policies and surety bonds and fees for
any appraisal, appraisal review, market or feasibility study required by Lender. Borrower hereby
authorizes Lender to disburse the proceeds of the Loan to pay such expenses, charges, costs and
fees notwithstanding that Borrower may not have requested a disbursement of such amount. Such
disbursement shall be added to the outstanding principal balance of the Note. The authorization
hereby granted shall be irrevocable, and no further direction or authorization from Borrower shall
be necessary for Lender to make such disbursements. However, the provision of this Section 12.10
shall not prevent Borrower from paying such expense, charges, costs and fees from its own funds.
All such expenses, charges, costs and fees shall be Borrower’s obligation regardless of whether or
not Borrower has requested and met the conditions for a disbursement of the Loan. The obligations
on the part of Borrower under this Section 12.10 shall survive the closing of the Loan and the
repayment thereof.

          12.11 Disclaimer by Lender. Lender shall not be liable to any contractor,
subcontractor, supplier, laborer, architect, engineer or any other party for services performed or
materials supplied in connection with the Project. Lender shall not be liable for any debts or
claims accruing in favor of any such parties against Borrowers or others or against the Property or
the Project. Borrower is not and shall not be an agent of Lender for any purpose. Lender is not a
joint venture partner with Borrower in any manner whatsoever. Prior to default by Borrower under
this Agreement and the exercise of remedies granted herein, Lender shall not be deemed to be in
privity of contract with any contractor or provider of services to the Project, nor shall any
payment of funds directly to a contractor, subcontractor, or provider of services be deemed to
create any third party beneficiary status or recognition of same by Lender. Approvals granted by
Lender for any matters covered under this Agreement shall be narrowly construed to cover only the
parties and facts identified in any written approval or, if not in writing, such approvals shall be
solely for the benefit of Borrower.

          12.12 Indemnification. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER AGREES TO
PROTECT, INDEMNIFY, DEFEND AND HOLD HARMLESS LENDER, ITS DIRECTORS, OFFICERS, AGENTS AND EMPLOYEES
FROM AND AGAINST ANY AND ALL LIABILITY, EXPENSE OR DAMAGE OF ANY

-32-

 

KIND OR NATURE AND FROM ANY SUITS, CLAIMS OR DEMANDS, INCLUDING REASONABLE LEGAL FEES AND
EXPENSES ON ACCOUNT OF ANY MATTER OR THING OR ACTION OR FAILURE TO ACT BY LENDER, WHETHER IN SUIT
OR NOT, ARISING OUT OF THIS AGREEMENT OR IN CONNECTION HEREWITH, OTHER THAN SUCH CLAIMS AND
LIABILITIES AS ARISE SOLELY FROM THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LENDER. Upon
receiving knowledge of any suit, claim or demand asserted by a third party that Lender believes is
covered by this indemnity, Lender shall give Borrower notice of the matter and an opportunity to
defend it, at Borrower’s sole cost and expense, with legal counsel satisfactory to Lender. Lender
may also require Borrower to defend the matter. The obligations on the part of Borrower under this
Section 12.12 shall survive the closing of the Loan and the repayment thereof.

          12.13 Titles and Headings. The titles and headings of sections of this Agreement are
intended for convenience only and shall not in any way affect the meaning or construction of any
provision of this Agreement.

          12.14 Brokers. Borrower and Lender represent to each other that neither of them knows
of any brokerage commissions or finders’ fee due or claimed with respect to the transaction
contemplated hereby. Borrower and Lender shall indemnify and hold harmless the other party from
and against any and all loss, damage, liability, or expense, including costs and reasonable
attorney fees, which such other party may incur or sustain by reason of or in connection with any
misrepresentation by the indemnifying party with respect to the foregoing.

          12.15 Change, Discharge, Termination, or Waiver. No provision of this Agreement may
be changed, discharged, terminated, or waived except in writing signed by the party against whom
enforcement of the change, discharge, termination, or waiver is sought. No failure on the part of
Lender to exercise and no delay by Lender in exercising any right or remedy under the Loan
Documents or under the law shall operate as a waiver thereof.

          12.16 CHOICE OF LAW. THIS AGREEMENT AND THE TRANSACTION CONTEMPLATED HEREUNDER SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING
EFFECT TO CONFLICT OF LAWS PRINCIPLES.

          12.17 Disbursements in Excess of Loan Amount. In the event the total disbursements by
Lender exceed the amount of the Loan the total of all disbursements shall be secured by the
Mortgage. All other sums expended by Lender pursuant to this Agreement or any other Loan Documents
shall be deemed to have been paid to Borrower and shall be secured by, among other things, the
Mortgage.

          12.18 Participations. Lender shall have the right at any time to sell, assign,
transfer, negotiate or grant participations in all or any part of the Loan or the Note to one or
more participants.

          12.19 Submission to Jurisdiction; Waiver of Venue; Service of Process.

          (a) BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO
THE NONEXCLUSIVE

-33-

 

JURISDICTION OF THE COURTS OF THE STATE OF TEXAS SITTING IN TARRANT COUNTY, THE COURTS
OF THE STATE OF CALIFORNIA SITTING IN ORANGE COUNTY, THE UNITED STATES DISTRICT COURT OF THE
NORTHERN DISTRICT OF TEXAS AND THE UNITED STATES DISTRICT COURT OF THE CENTRAL DISTRICT OF
CALIFORNIA AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT
ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY
OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT LENDER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          (b) BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (a) OF THIS SECTION. EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY
SUCH COURT.

          (c) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED
FOR NOTICES IN SECTION 12.2. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

          12.20 Counterparts. This Agreement may be executed in any number of counterparts each
of which shall be deemed an original, but all such counterparts together shall constitute but one
agreement.

          12.21 Time is of the Essence. Time is of the essence of this Agreement.

          12.22 Attorneys’ Fees. Borrower shall promptly pay to Lender from Borrower’s own
funds or from the proceeds of the Loan, upon demand, with interest thereon from the date of

-34-

 

demand at the default interest rate, reasonable attorneys’ fees and all costs and other
expenses paid or incurred by Lender in enforcing or exercising its rights or remedies created by,
connected with or provided for in this Agreement, any of the other Loan Documents or under any Swap
Contracts, and payment thereof shall be secured by the Mortgage. If at any time Borrower fails,
refuses or neglects to do any of the things herein provided to be done by Borrower, Lender shall
have the right, but not the obligation, to do the same but at the expense and for the account of
Borrower. The amount of any monies so expended or obligations so incurred by Lender, together with
interest thereon at the default interest rate, shall be repaid to Lender forthwith upon written
demand therefor and payment thereof shall be secured by the Mortgage.

          12.23 Signs. Through the term of the Loan, Lender shall have the right to erect one
of more signs on the Project indicating its provision of financing for the Project, and Lender
shall also have the right to publicize its financing of the Project as Lender may deem appropriate.

          12.24 Waiver Of Jury Trial. BORROWER AND LENDER HEREBY IRREVOCABLY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). BORROWER AND LENDER (A) CERTIFY THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGE THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          12.25 WAIVER OF SPECIAL DAMAGES. BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT
PROHIBITED BY LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION
OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

          12.26 USA Patriot Act Notification. The following notification is provided to
Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help
the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain,
verify, and record information that identifies each person or entity that
opens an account, including any deposit account, treasury management
account, loan, other extension of credit, or other financial services
product. What this means for Borrower: When Borrower opens an account, if
Borrower is an individual, Lender will ask for Borrower’s name, taxpayer
identification number, residential

-35-

 

address, date of birth, and other information that will allow Lender to
identify Borrower, and, if Borrower is not an individual, Lender will ask
for Borrower’s name, taxpayer identification number, business address, and
other information that will allow Lender to identify Borrower. Lender may
also ask, if Borrower is an individual, to see Borrower’s driver’s license
or other identifying documents, and, if Borrower is not an individual, to
see Borrower’s legal organizational documents or other identifying
documents.

          12.27 Swap Contracts. Borrower may enter into Swap Contracts with Lender (or its
Affiliates), or with another financial institution acceptable to Lender, for the purpose of hedging
and protecting against interest rate fluctuation risks with respect to the Loan, on such terms and
conditions as are mutually approved by Borrower and Lender (or its Affiliates). So long as any
Mortgage encumbers the Project and the Swap Contract has been provided by Lender (or its
Affiliates) in connection with the Loan, Borrower’s obligations (including any payment obligations)
with respect to any such Swap Contract shall be secured by the Deeds of Trust and any other
Collateral, and any default by Borrower under any such Swap Contract shall, at the discretion of
Lender, constitute an Event of Default under this Agreement. All Swap Contracts, if any, between
Borrower and Lender (or its Affiliates) are independent Agreements governed by the written
provisions of the Swap Contracts, which will remain in full force and effect, unaffected by any
repayment, prepayment, acceleration, reduction, increase or change in the terms of any Notes or
other Loan Documents, except as otherwise expressly provided in the written Swap Contracts, and any
payoff statement from Lender relating to the Note shall not apply to the Swap Contracts except as
otherwise expressly provided in such payoff statement. By its respective signature below, each
Borrower waives any right to prepay the Loan, in whole or in part, without payment of any and all
amounts specified or required under the terms of any Swap Contracts (the “Indemnified Amounts”).
Borrower acknowledges that prepayment of the Loan may result in Lender (or its Affiliates)
incurring additional losses, costs, expenses and liabilities, including lost revenues and lost
profits in connection with the Swap Contract or otherwise. Borrower therefore agrees to pay any
and all Indemnified Amounts if the Loan is prepaid, whether voluntarily or by reason of
acceleration, including acceleration upon any transfer or conveyance of any right, title or
interest in any Property giving Lender the right to accelerate the maturity of the Loan as provided
in the Loan Documents. Borrower agrees that Lender’s willingness to offer the Loan to Borrower is
sufficient and independent consideration, given individual weight by Borrower, for this waiver.
Borrower understands that Lender would not offer the Loan to Borrower absent this waiver.
Notwithstanding anything to the contrary contained in this Agreement, any obligations of Borrower
under any Swap Contracts owed to Wachovia Bank, N.A. (or any of its Affiliates) shall, at Wachovia
Bank, N.A.’s (or its Affiliates’) discretion, be secured pari passu with any and all indebtedness
and obligations of Borrower secured pursuant to the Loan Documents.

          12.28 Interest Rate Limitation. It is the intent of Borrower and Lender and all other
parties to the Loan Documents to conform to and contract in strict compliance with applicable usury
Law from time to time in effect. In no way, nor in any event or contingency (including but not
limited to prepayment, default, demand for payment, or acceleration of the maturity of any
obligation), shall the interest taken, reserved, contracted for, charged, chargeable, or received
under this Agreement, or otherwise, exceed the maximum nonusurious amount

-36-

 

permitted by applicable Law (the “Maximum Amount”). If, from any possible construction of any
document, interest would otherwise be payable in excess of the Maximum Amount, any such
construction shall be subject to the provisions of this Section and shall ipso facto be
automatically reformed and the interest payable shall be automatically reduced to the Maximum
Amount, without the necessity of execution of any amendment or new document. If Lender shall ever
receive anything of value which is characterized as interest under applicable Law and which would
apart from this provision be in excess of the Maximum Amount, an amount equal to the amount which
would have been excessive interest shall, without penalty, be applied to the reduction of the
principal amount owing under the Loan Documents in the inverse order of its maturity and not to the
payment of interest, or refunded to Borrower or the other payor thereof if and to the extent such
amount which would have been excessive exceeds such unpaid principal. The right to accelerate
maturity of the Note or any other obligations under the Loan Documents does not include the right
to accelerate any interest which has not otherwise accrued on the date of such acceleration, and
does not intend to charge or receive any unearned interest in the event of acceleration. All
interest paid or agreed to be paid to shall, to the extent permitted by applicable Law, be
amortized, prorated, allocated and spread throughout the full stated term (including any renewal or
extension) of such indebtedness so that the amount of interest on account of such indebtedness does
not exceed the Maximum Amount. As used in this Section, the term “applicable Law” shall
mean the Laws of the State where the Property is located or where the obligations under the Loan
Documents are payable, or the federal Laws of the United States applicable to this transaction,
whichever Laws allow the greatest interest, as such Laws now exist or may be changed or amended or
come into effect in the future.

     12.29 Joint Borrower Provisions. Each Borrower acknowledges and agrees that it shall
be jointly and severally liable for the Loan and all other Obligations arising under this Agreement
and/or any of the other Loan Documents. In furtherance thereof, each Borrower acknowledges and
agrees as follows:

          (a) For the purpose of implementing the joint borrower provisions of the Loan
Documents, each Borrower hereby irrevocably appoints each other Borrower as its agent and
attorney-in-fact for all purposes of the Loan Documents, including the giving and
receiving of notices and other communications.

          (b) TO INDUCE THE LENDER TO MAKE THE LOAN, AND IN CONSIDERATION THEREOF, EACH BORROWER
HEREBY AGREES TO INDEMNIFY THE LENDER AGAINST, AND HOLD THE LENDER HARMLESS FROM, ANY AND
ALL LIABILITIES, EXPENSES, LOSSES, DAMAGES AND/OR CLAIMS OF DAMAGE OR INJURY ASSERTED
AGAINST THE LENDER BY ANY BORROWER OR BY ANY OTHER PERSON ARISING FROM OR INCURRED BY REASON
OF (i) RELIANCE BY THE LENDER ON ANY REQUESTS OR INSTRUCTIONS FROM ANY BORROWER, OR (ii) ANY
OTHER ACTION TAKEN BY THE LENDER IN GOOD FAITH WITH RESPECT TO THIS AGREEMENT OR THE OTHER
LOAN DOCUMENTS.

          (c) Each Borrower acknowledges that the liens and security interests created or granted
herein and by the other Loan Documents will secure Obligations of all Borrowers under the
Loan Documents and, in full recognition of that fact, each Borrower

-37-

 

consents and agrees that the Lender may, at any time and from time to time, without
notice or demand, and without affecting the enforceability or security hereof or of any
other Loan Document:

          (1) agree with any Borrowers to supplement, modify, amend, extend,
renew, accelerate, or otherwise change the time for payment or the terms of
the Obligations or any part thereof, including any increase or decrease of
the rate(s) of interest thereon;

          (2) agree with any Borrowers to supplement, modify, amend or waive, or
enter into or give any agreement, approval or consent with respect to, the
Obligations or any part thereof or any of the Loan Documents or any
additional security or guaranties, or any condition, covenant, default,
remedy, right, representation or term thereof or thereunder;

          (3) accept new or additional instruments, documents or agreements in
exchange for or relative to any of the Loan Documents or the Obligations or
any part thereof;

          (4) accept partial payments on the Obligations;

          (5) receive and hold additional security or guaranties for the
Obligations or any part thereof;

          (6) release, reconvey, terminate, waive, abandon, subordinate,
exchange, substitute, transfer and enforce any security for or guaranties of
the Obligations, and apply any security and direct the order or manner of
sale thereof as Lender, in its sole and absolute discretion may determine;

          (7) release any Person or any guarantor from any personal liability
with respect to the Obligations or any part thereof;

          (8) settle, release on terms satisfactory to the Lender or by operation
of applicable laws or otherwise liquidate or enforce any Obligations and any
security therefor or guaranty thereof in any manner, consent to the transfer
of any such security and bid and purchase at any sale; and

          (9) consent to the merger, change or any other restructuring or
termination of the corporate existence of any Borrower or any other Person,
and correspondingly restructure the obligations of such Borrower or other
Person, and any such merger, change, restructuring or termination shall not
affect the liability of any Borrower or the continuing existence of any lien
or security interest hereunder, under any other Loan Document to which any
Borrower is a party or the enforceability hereof or thereof with respect to
all or any part of the Obligations.

-38-

 

Notwithstanding anything to the contrary contained in this Section 12.29,
there shall be no written modification of the Loan Documents without
execution by either Western Place or LP Borrower.

          (d) Upon the occurrence of and during the continuance of any Event of Default, the
Lender may enforce this Agreement and the other Loan Documents independently as to each
Borrower and independently of any other remedy or security the Lender at any time may have
or hold in connection with the Obligations, and in collecting on the Loan it shall not be
necessary for the Lender to marshal assets in favor of any Borrower or any other Person or
to proceed upon or against and/or exhaust any other security or remedy before proceeding to
enforce this Agreement and the other Loan Documents. Each Borrower expressly waives any
right to require the Lender, in connection with the Lender’s efforts to obtain repayment of
the Loan and other Obligations, to marshal assets in favor of any Borrower or any other
Person or to proceed against any other Person or any collateral provided by any other
Person, and agrees that the Lender may proceed against any Persons and/or collateral in such
order as it shall determine in its sole and absolute discretion in connection with the
Lender’s efforts to obtain repayment of the Loan and other Obligations. Lender may file a
separate action or actions against each Borrower to enforce the Obligations, whether action
is brought or prosecuted with respect to any other security or against any other Person, or
whether any other Person is joined in any such action or actions. Each Borrower agrees that
Lender, each Borrower and/or any other Person may deal with each other in connection with
the Obligations or otherwise, or alter any contracts or agreements now or hereafter existing
between any of them, in any manner whatsoever, all without in any way altering or affecting
the security of this Agreement or the other Loan Documents. The rights of the Lender
hereunder and under the other Loan Documents shall be reinstated and revived, and the
enforceability of this Agreement and the other Loan Documents shall continue, with respect
to any amount at any time paid on account of the Obligations which thereafter shall be
required to be restored or returned by the Lender as a result of the bankruptcy, insolvency
or reorganization of any Borrower or any other Person, or otherwise, all as though such
amount had not been paid. The enforceability of this Agreement and the other Loan Documents
at all times shall remain effective even though the any or all Obligations, or any other
security or guaranty therefor, may be or hereafter may become invalid or otherwise
unenforceable as against any Borrower or any other Person and whether or not any Borrower or
any other Person shall have any personal liability with respect thereto. Each Borrower
expressly waives any and all defenses to the enforcement of its obligations under the Loan
Documents now or hereafter arising or asserted by reason of (i) any disability or other
defense of any Borrower or any other Person with respect to the Obligations, (ii) the
unenforceability or invalidity of any security or guaranty for the Obligations or the lack
of perfection or continuing perfection or failure of priority of any security for the
Obligations, (iii) the cessation for any cause whatsoever of the liability of any Borrower
or any other Person (other than by reason of the full and final payment and performance of
all Obligations), (iv) any failure of the Lender to marshal assets in favor of any of the
Borrowers or any other Person, (v) any failure of the Lender to give notice of sale or other
disposition of any Collateral for the Obligations to any Borrower or to any other Person or
any defect in any notice that may be given in connection with any such sale or disposition,
(vi) any failure of the Lender to

-39-

 

comply in any non-material respect with applicable laws in connection with the sale or
other disposition of any Collateral or other security for any Obligation, (vii) any act or
omission of the Lender or others that directly or indirectly results in or aids the
discharge or release of any Borrower or of any other Person or of any of the Obligations or
any other security or guaranty therefor by operation of law or otherwise, (viii) any law
which provides that the obligation of a surety or guarantor must neither be larger in amount
nor in other respects more burdensome than that of the principal or which reduces a surety’s
or guarantor’s obligation in proportion to the principal obligation, (ix) any failure of the
Lender to file or enforce a claim in any bankruptcy or other proceeding with respect to any
Person, (x) the election by the Lender, in any bankruptcy proceeding of any Person, of the
application or non-application of Section 1111(b)(2) of the United States Bankruptcy Code,
(xi) any extension of credit or the grant of any lien under Section 364 of the United States
Bankruptcy Code except to extent otherwise provided in this Agreement, (xii) any use of cash
collateral under Section 363 of the United States Bankruptcy Code, (xiii) any agreement or
stipulation with respect to the provision of adequate protection in any bankruptcy
proceeding of any Person, (xiv) the avoidance of any lien or security interest in favor of
the Lender securing the Obligations for any reason, or (xv) any bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against any Person, including any discharge of, or bar or stay against
collecting, all or any of the Obligations (or any interest thereon) in or as a result of any
such proceeding. Without in any way limiting the foregoing, with respect to the Loan
Documents and the Obligations, each Borrower: (A) waives all rights and defenses arising out
of an election of remedies by the Lender, even though that election of remedies, such as
nonjudicial foreclosure with respect to security for Borrowers’ obligations, has destroyed
each of their rights of subrogation and reimbursement against the other by the operation of
applicable law; and (B) waives any right to a fair value hearing or similar proceeding
following a nonjudicial foreclosure of the Obligations to the maximum extent permitted by
applicable law.

          (e) The Borrowers represent and warrant to the Lender that they have established
adequate means of obtaining from each other, on a continuing basis, financial and other
information pertaining to their respective businesses, operations and condition (financial
and otherwise) and their respective properties, and each now is and hereafter will be
completely familiar with the businesses, operations and condition (financial and otherwise)
of the other and their respective properties. Each Borrower hereby expressly waives and
relinquishes any duty on the part of Lender to disclose to such Borrower any matter, fact or
thing related to the businesses, operations or condition (financial or otherwise) of the
other Borrowers or the other Borrowers’ properties, whether now known or hereafter known by
the Lender during the life of this Agreement. With respect to any of the Obligations, the
Lender need not inquire into the powers of any Borrower or the officers, employees or other
Persons acting or purporting to act on such Borrower’s behalf.

          (f) Without limiting the foregoing, or anything else contained in this Agreement, each
Borrower waives all rights and defenses that it may have because the Obligations are secured
by real property. This means, among other things:

-40-

 

          (1) The Lender may collect on the Obligations from any Borrower without first
foreclosing on any real or personal property collateral pledged by any other
Borrower; and

          (2) If the Lender forecloses on any real property collateral pledged by any
Borrower for the Obligations: (A) the amount of the indebtedness owed by the other
Borrowers may be reduced only by the price for which that collateral is sold at the
foreclosure sale, even if the collateral is worth more than the sale price; and (B)
the Lender may collect from any Borrower even if the Lender, by foreclosing on the
real property collateral, has destroyed any right any Borrower may have to collect
from the other Borrowers.

          (g) This is an unconditional and irrevocable waiver of any rights and defenses each
Borrower may have because the Obligations are secured by real property. Each Borrower
expressly waives any right to receive notice of any judicial or nonjudicial foreclosure or
sale of any real property collateral provided by the other Borrowers to secure the
Obligations and failure to receive any such notice shall not impair or affect such
Borrower’s obligations hereunder or the enforceability of this Agreement or the other Loan
Documents or any liens created or granted hereby or thereby.

          (h) Notwithstanding anything to the contrary elsewhere contained herein or in any other
Loan Document to which any Borrower is a party, with respect to the Loan and all other
Obligations, each Borrower hereby waives (until such time as the Obligations have been fully
satisfied) with respect to the other Borrowers and their successors and assigns (including
any surety) and any other Person any and all rights at law or in equity, to subrogation, to
reimbursement, to exoneration, to contribution, to setoff, to any other rights and defenses
available to it under applicable law, or to any other rights that could accrue to a surety
against a principal, to a guarantor against a maker or obligor, to an accommodation party
against the party accommodated, or to a holder or transferee against a maker and which each
of them may have or hereafter acquire against the other or any other Person in connection
with or as a result of such Borrower’s execution, delivery and/or performance of this
Agreement or any other Loan Document to which it is a party until the Obligations are paid
and performed in full. Each Borrower agrees that it shall not have or assert any such
rights against any other Borrower or any other Borrower’s successors and assigns or any
other Person (including any surety), either directly or as an attempted setoff to
any action commenced against such Borrower by any other Borrower (as borrower or in any
other capacity) or any other Person until the all Obligations are paid and performed in
full. Each Borrower hereby acknowledges and agrees that this waiver is intended to benefit
the Lender and shall not limit or otherwise affect any Borrower’s liability under this
Agreement or any other Loan Document to which it is a party, or the enforceability hereof or
thereof.

          (i) Each Borrower warrants and agrees that each of the waivers and consents set forth
herein is made with full knowledge of its significance and consequences, with the
understanding that events giving rise to any defense waived may diminish, destroy or
otherwise adversely affect rights which each otherwise may have against the other, against
the Lender or others, or against any collateral. If any of the

-41-

 

waivers or consents herein are determined to be contrary to any applicable law or
public policy, such waivers and consents shall be effective to the maximum extent permitted
by law.

ARTICLE XIII

EXHIBITS

          The following exhibits to this Agreement are fully incorporated herein as if set forth at
length:

Exhibit A — Property Description

Exhibit B — Budget

Exhibit C — Closing Requirements

[Signatures Appear on Following Page.]

-42-

 

          IN WITNESS WHEREOF, Lender and Borrower have caused this Agreement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	“Lender”

WACHOVIA BANK, NATIONAL

ASSOCIATION, a national banking association

 	 	 
	By:  	/s/ Anne M. McNeil
 	 	 
	 	Name:  	Anne M. McNeil 	 	 
	 	Title:  	Vice President 	 	 
	 
	“Borrower”

NNN WESTERN PLACE, LLC, a Delaware 

limited liability company

 	 	 
	By:  	NNN Western Place Manager, LLC, a
 	 	 
	 	Delaware limited liability company, its 	 	 
	 	Manager 	 	 
	 
	 	 	 
	By:  	Grubb & Ellis Realty Investors,
 	 	 
	 	LLC, a Virginia limited liability 	 	 
	 	company, its Manager 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 

Employer Identification No. 20-0905853

 

 

	 	 	 	 	 
	NNN WESTERN PLACE 1, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No. 63-1224037 	 	 
	 

	 	 	 	 	 
	NNN WESTERN PLACE 2, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No. 91-1743004 	 	 
	 

	 	 	 	 	 
	NNN WESTERN PLACE 3, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No. 36-6912283 	 	 

 

 

	 	 	 	 	 
	NNN WESTERN PLACE 4, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No. ###-##-####	 	 
	 

	 	 	 	 	 
	NNN WESTERN PLACE 5, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No.
550—36-7827 	 	 
	 

	 	 	 	 	 
	NNN WESTERN PLACE 6, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	 	 	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No. ###-##-####	 	 

 

 

	 	 	 	 	 
	NNN WESTERN PLACE 7, LLC, a Delaware

limited liability company

 	 	 
	By:  	Grubb & Ellis Realty Investors, LLC, a
 	 	 
	 	Virginia limited liability company, its Vice 	 	 
	 	President 	 	 
	 
	By:  	/s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	Employer Identification No. 36-6912283 	 	 

	 	 	 	 	 
	GREIT — WESTERN PLACE, LP, a Texas

limited partnership

 	 	 
	By:  	GREIT — Western Place GP, LLC, a
 	 	 
	 	Delaware limited liability company, its 	 	 
	 	General Partner 	 	 
	 
	By:  	G REIT Liquidating Trust dated
 	 	 
	 	January 22, 2008, a Maryland Trust, 	 	 
	 	its Sole Member and Manager 	 	 
	 
	By:  	Gary H. Hunt, W. Brand
 	 	 
	 	Inlow, Edward A. Johnson, 	 	 
	 	D. Fleet Wallace, and Gary

T. Wescombe, as Trustees of

the G REIT Liquidating Trust

dated January 22, 2008	 	 
	 
	By:  	/s/ Andrea R. Biller
 	 	 
	 	Name:  	Andrea R. Biller 	 	 
	 	Title:  	Authorized Representative 	 	 
	 
	Employer Identification No. 20-1334643Exhibit 10.22

 

EXHIBIT 10.22

PROMISSORY NOTE

			
	$28,000,000.00
	 	February 15, 2008

Borrower (defined below)

c/o Grubb & Ellis Realty Investors, LLC

1551 N. Tustin Avenue, Suite 300

Santa Ana, California 92705

WACHOVIA BANK, NATIONAL ASSOCIATION

Real Estate Financial Services

General Banking Group

Mail Code: CA 6233

15750 Alton Parkway

Irvine, California 92618

NNN WESTERN PLACE, LLC, a Delaware limited liability company, NNN WESTERN PLACE 1, LLC, a Delaware
limited liability company, NNN WESTERN PLACE 2, LLC, a Delaware limited liability company, NNN
WESTERN PLACE 3, LLC, a Delaware limited liability company, NNN WESTERN PLACE 4, LLC, a Delaware
limited liability company, NNN WESTERN PLACE 5, LLC, a Delaware limited liability company, NNN
WESTERN PLACE 6, LLC, a Delaware limited liability company, NNN WESTERN PLACE 7, LLC, a Delaware
limited liability company, and GREIT — WESTERN PLACE, LP, a Texas limited partnership (individually
and collectively, the “Borrower”), jointly and severally promise to pay to the order of WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”), in lawful money of the
United States of America, at its office indicated above or wherever else Lender may specify, the
sum of Twenty-Eight Million and No/100 Dollars ($28,000,000.00) or such sum as may be advanced and
outstanding from time to time, with interest on the unpaid principal balance at the rate and on the
terms provided in this Promissory Note (including all renewals, extensions or modifications hereof,
this “Note”).

LOAN AGREEMENT. This Note is subject to the provisions of that certain Loan Agreement between
Lender and Borrower of even date herewith (the “Loan Agreement”), as modified from time to time.
Terms not otherwise defined herein shall be as defined in the Loan Agreement.

USE OF PROCEEDS. Borrower shall use the proceeds of the loan(s) evidenced by this Note for the
commercial purposes of Borrower, as follows: financing and operation of the Project in accordance
with the Loan Agreement, and other uses reasonably approved by Lender.

SECURITY. Borrower has granted Lender a security interest in the collateral described in the Loan
Documents, including, but not limited to, real and personal property collateral described in that
certain Mortgage, Assignment, Security Agreement and Fixture Filing of even date herewith.

-1-

 

MATURITY OF THE LOAN: The outstanding principal balance of the Loan, together with all unpaid
accrued interest thereon (not otherwise paid when due), and all other amounts payable by Borrower
with respect to this Note or pursuant to the terms of any other Loan Documents (not otherwise paid
when due), shall be due and payable in full on February 28, 2009 (the “Maturity Date”).

INTEREST RATE. Interest Period. Interest Rate Options. Interest shall accrue on the unpaid
principal balance of the Loan from the date of the disbursement thereof at a rate per annum equal
to the LIBOR Rate (as defined below) or the Prime Rate (as defined below), as selected by Borrower
in accordance herewith (each, an “Interest Rate”). Interest shall be payable in arrears and shall
be due on the first day of each calendar month and on the Maturity Date and on the date the
outstanding principal amount of the Note is repaid in full. There shall be no more than one
Interest Rate for the Loan in effect at any time. When the Prime Rate is selected for the Loan, it
shall be adjusted from time to time, effective as of the date of each change in Lender’s Prime Rate
and the Prime Rate shall continue to apply until another Interest Rate option is selected for the
Loan pursuant to the subparagraph entitled “Notice and Manner of Borrowing and Rate Conversion”.
When the LIBOR Rate is selected for the Loan, such rate shall apply for the Loan until another
Interest Rate option is selected for the Loan pursuant to the subparagraph entitled “Notice and
Manner of Borrowing and Rate Conversion.” Notice and Manner of Borrowing and Rate Conversion.
Borrower shall give Lender irrevocable telephonic notice of each proposed rate conversion not later
than 11:00 a.m. local time at the office of Lender first shown above (a) on the same business day
as each rate conversion to the Prime Rate and (b) at least 2 business days before each proposed
rate conversion to the LIBOR Rate. Each such notice shall specify (i) the date of such rate
conversion, which shall be a business day and (ii) the Interest Rate selected by Borrower. Notices
received after 11:00 a.m. local time at the office of Bank first shown above shall be deemed
received on the next business day. Rate after Default. Upon the occurrence and during the
continuance of an Event of Default, at the option of Lender, the outstanding principal balance of
the Loan (and, to the extent permitted by applicable law, all accrued interest thereon) shall bear
interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 4%
plus the greater of the LIBOR Rate or the Prime Rate (the “Default Rate”). The application
of the Default Rate shall not be interpreted or deemed to extend any cure period set forth in the
Loan Documents or otherwise to limit any of Lender’s remedies under this Note or any of the other
Loan Documents. Computation of Interest. Interest on all Advances shall be computed on the basis
of a 360-day year for the actual number of days in the applicable period (“Actual/360
Computation”). The Actual/360 Computation determines the annual effective interest yield by taking
the stated (nominal) rate for a year’s period and then dividing said rate by 360 to determine the
daily periodic rate to be applied for each day in the applicable period. Application of the
Actual/360 Computation produces an annualized effective rate exceeding the nominal rate. If any
payment of interest under the Note would otherwise be due on a day which is not a Business Day, the
payment instead shall be due on the next succeeding Business Day and such extension of time shall
be included in computing the interest due in respect of said payment. Each determination of an
Interest Rate by Lender pursuant to any provision of this Note shall be conclusive and binding on
Lender and Borrower in the absence of manifest error. No Deductions. All payments of principal or
interest under this Note shall be made without deduction of any present and future taxes, levies,
imposts, deductions, charges or withholdings, which amounts shall be owed and paid by Borrower.
Borrower will pay the amounts necessary such that the gross

-2-

 

amount of the principal and interest received by Lender is not less than that required by this
Note. As used herein, “LIBOR Rate” means, for any day, the rate per annum determined on the basis
of the offered rate for deposits in U.S. dollars having a maturity of one month which appears on
the Reuters Screen LIBOR01 page as of 11:00 a.m. (London time) on such day, or if such day is not a
London Banking Day, then on the immediately preceding London Banking Day, plus 1.65% per
annum; provided that, if no such offered rates appear on such page, the applicable “LIBOR Rate”
shall instead be the arithmetic average (rounded upward, if necessary, to the next higher 1/100th
of 1%) of rates quoted by not less than two (2) major lenders in New York City, selected by Lender,
at approximately 10:00 a.m., New York City time, on such day, for deposits in U.S. dollars offered
by leading European banks having a maturity of one month in a amount comparable to the outstanding
principal amount of the Loan, plus 1.65% per annum; provided, further, that if on any day
Lender is unable to determine the LIBOR Rate in the foregoing manner, the LIBOR Rate for such day
shall be the rate per annum equal to the Prime Rate for such day. The LIBOR Rate and the Prime
Rate are floating rates which may change daily. As used herein, “Prime Rate” means that rate
announced by Lender from time to time as its prime rate and is one of several interest rate bases
used by Lender; Lender lends at rates both above and below the Prime Rate, and Borrower
acknowledges that the Prime Rate is not represented or intended to be the lowest or most favorable
rate of interest offered by Lender. As used herein, “London Banking Day” means a day on which
dealings in dollar deposits are conducted by and between banks in the London interbank eurodollar
market.

PREPAYMENT. Upon not less than thirty (30) days’ prior written notice to Lender, Borrower may
prepay the Loan, in whole or in part (provided Lender shall have no obligations to readvance any
repaid principal), without prepayment premium (but subject to any costs set forth in any Swap
Contract should Lender in its sole discretion elect to terminate any such Swap Contract provided by
Lender or its Affiliate upon any such prepayment).

APPLICATION OF PAYMENTS. Monies received by Lender from any source for application toward payment
of the Obligations shall be applied in the following order: (i) late charges; (ii) impound payments
for taxes and insurance required pursuant to the Loan Documents, if any, (iii) interest and (iv)
principal. If an Event of Default occurs, monies may be applied to the Obligations in any manner
or order deemed appropriate by Lender.

If any payment received by Lender under this Note or other Loan Documents is rescinded, avoided or
for any reason returned by Lender because of any adverse claim or threatened action, the returned
payment shall remain payable as an obligation of all persons liable under this Note or other Loan
Documents as though such payment had not been made.

DEFINITIONS. Loan Documents. The term “Loan Documents”, shall have the meaning provided in the
Loan Agreement. Obligations. The term “Obligations”, as used in this Note and the other Loan
Documents, refers to any and all indebtedness and other obligations under this Note, all other
obligations under any other Loan Document(s), and all obligations under any Swap Contracts entered
into in connection with the Loan between Borrower and Lender (or its Affiliate) whenever executed.
Certain Other Terms. All terms that are used but not otherwise defined in any of the Loan
Documents shall have the definitions provided in the Uniform Commercial Code.

-3-

 

LATE CHARGE. If any payments are not timely made, Borrower shall also pay to Lender a late charge
equal to 4% of each payment past due for 15 or more days (other than the final repayment of the
principal of the Loan at maturity).

Acceptance by Lender of any late payment without an accompanying late charge shall not be deemed a
waiver of Lender’s right to collect such late charge or to collect a late charge for any subsequent
late payment received.

ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Lender’s reasonable expenses
incurred to enforce or collect any of the Obligations including, without limitation, arbitration,
paralegals’, attorneys’ and experts’ fees and expenses, whether incurred without the commencement
of a suit, in any trial, arbitration, or administrative proceeding, or in any appellate or
Bankruptcy proceeding.

EVENT OF DEFAULT. The occurrence of any of the following will be deemed to be an event of default
(“Event of Default”) hereunder: (i) Failure of Borrower to pay any amounts due pursuant to this
Note or the Loan Documents (including, without limitation, principal, interest, fees, or other
amounts) within ten (10) days after the date such amount is due; or (ii) the occurrence of any
other Event of Default under the Loan Agreement, or any of the other Loan Documents (including any
amendment, modification or extension thereof) which is not cured within any applicable cure period
(if any) set forth therein.

REMEDIES UPON DEFAULT. Upon the occurrence and during the continuance of an Event of Default, at
the option of Lender, the entire balance of principal of this Note, together with all accrued
interest thereon, shall, without demand or notice, immediately become due and payable and so long
as such Event of Default continues, the entire balance of principal together with all accrued
interest shall bear interest at the Default Rate. Upon the occurrence and during the continuance
of an Event of Default, Lender may exercise any and all rights and remedies it may have under the
Loan Documents, and under applicable law and in equity. No delay or omission on the part of the
holder hereof in exercising any right under this Note or under any of the other Loan Documents will
operate as a waiver of such right.

FINANCIAL AND OTHER INFORMATION. Borrower shall timely deliver to Lender the information required
under Section 10.8 of the Loan Agreement. Such information shall be true, complete, and accurate
in all material respects.

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note and other Loan
Documents shall be valid unless in writing and signed by an officer of Lender. No waiver by Lender
of any Event of Default shall operate as a waiver of any other Event of Default or the same Event
of Default on a future occasion. Neither the failure nor any delay on the part of Lender in
exercising any right, power, or remedy under this Note and other Loan Documents shall operate as a
waiver thereof, nor shall a single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.

Each Borrower or any person liable under this Note waives presentment, protest, notice of dishonor,
demand for payment, notice of intention to accelerate maturity, notice of acceleration of maturity,
notice of sale and all other notices of any kind. Further, each agrees that Lender

-4-

 

may extend, modify or renew this Note or make a novation of the loan evidenced by this Note for any
period, and grant any releases, compromises or indulgences with respect to any collateral securing
this Note, or with respect to any other Borrower or any other person liable under this Note or
other Loan Documents, all without notice to or consent of each Borrower or each person who may be
liable under this Note or any other Loan Document and without affecting the liability of Borrower
or any person who may be liable under this Note or any other Loan Document.

MISCELLANEOUS PROVISIONS. Assignment. This Note and the other Loan Documents shall inure to the
benefit of and be binding upon the parties and their respective heirs, legal representatives,
successors and assigns. Lender’s interests in and rights under this Note and the other Loan
Documents are freely assignable, in whole or in part, by Lender. In addition, nothing in this Note
or any of the other Loan Documents shall prohibit Lender from pledging or assigning this Note or
any of the other Loan Documents or any interest therein to any Federal Reserve Lender. Borrower
shall not assign its rights and interest hereunder without the prior written consent of Lender, and
any attempt by Borrower to assign without Lender’s prior written consent is null and void. Any
assignment shall not release Borrower from the Obligations. Applicable Law; Conflict Between
Documents. This Note and, unless otherwise provided in any other Loan Document, the other Loan
Documents shall be governed by and construed under the laws of the State of Texas without regard to
that state’s conflict of laws principles. Notwithstanding Section 12.4 of the Loan Agreement, if
the terms of this Note should conflict with the terms of any loan agreement or any commitment
letter that survives closing, the terms of this Note shall control. Jurisdiction. Borrower
irrevocably agrees to non-exclusive personal jurisdiction in the State of Texas and the state named
in Lender’s address on the first page hereof. Severability. If any provision of this Note or of
the other Loan Documents shall be prohibited or invalid under applicable law, such provision shall
be ineffective but only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Note or other such document.
Notices. Any notices to be given under this Note shall be given in accordance with the terms of
Section 12.2 of the Loan Agreement. Plural; Captions. All references in the Loan Documents to
Borrower, guarantor, person, document or other nouns of reference mean both the singular and plural
form, as the case may be, and the term “person” shall mean any individual, person or entity. The
captions contained in the Loan Documents are inserted for convenience only and shall not affect the
meaning or interpretation of the Loan Documents. Advances. Lender may, in its sole discretion,
make other advances to or on behalf of Borrower which shall be deemed to be advances under this
Note, even though the stated principal amount of this Note may be exceeded as a result thereof.
Posting of Payments. All payments received at the office of Lender first shown above after 1:00
p.m. local time in Charlotte, North Carolina shall be deemed received at the opening of the next
banking day. Fees and Taxes. Borrower shall promptly pay all documentary, intangible recordation
and/or similar taxes on this transaction (excluding all excess profits taxes, franchise taxes,
capital stock taxes, federal and state income taxes, and other taxes to the extent applicable to
Lender’s general or net income) whether assessed at closing or arising from time to time.

WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY 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 NOTE OR ANY OTHER LOAN

-5-

 

DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS NOTE AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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

JOINT BORROWER PROVISIONS. If more than one Person signs this Note as Borrower, (a) the term
“Borrower” shall mean each such Person and (b) the obligations of each Borrower shall be joint,
several and independent. Section 12.29 of the Loan Agreement (the “Joint Borrower” provisions) is
by this reference incorporated herein in its entirety. This Note may be executed in multiple
counterparts, each of which shall constitute an original, but all of which shall constitute one
document.

-6-

 

IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be
executed under seal.

PLACE OF EXECUTION AND DELIVERY. Borrower hereby certifies that this Note and the Loan Documents
were executed in the State of California and delivered to Lender in the State of Texas.

	 	 	 	 	 
	BORROWER:

NNN WESTERN PLACE, LLC, a Delaware limited

liability company

By:  NNN Western Place Manager, LLC, a

        Delaware limited liability company, its 

        Manager 	 	 
	 	 	 
	By:  Grubb & Ellis Realty Investors, LLC, a

        Virginia limited liability company, its Manager
 	 	 
	 	 	 
	By:  	                         /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Office 	 	 
	 
	NNN WESTERN PLACE 1, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President
 	 	 
	 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 2, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President
 	 	 
	 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 

S-1

 

	 	 	 	 	 
	NNN WESTERN PLACE 3, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President
 	 	 
	 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 4, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President
 	 	 
	 	 	 
	By:  	            /s/ Jeffrey T. Hanson
 	 	 
	 	Name:  	Jeffrey T. Hanson 	 	 
	 	Title:  	Chief Investment Officer 	 	 
	 
	NNN WESTERN PLACE 5, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

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

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

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

S-2

 

	 	 	 	 	 
	NNN WESTERN PLACE 7, LLC, a Delaware limited

liability company

By:  Grubb & Ellis Realty Investors, LLC, a Virginia

        limited liability company, its Vice President

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

partnership

By:  GREIT — Western Place GP, LLC, a Delaware

        limited liability company, its General Partner

 	 	 
	By:  G REIT Liquidating Trust dated

        January 22, 2008, a Maryland Trust,

        its Sole Member and Manager

 	 	 
	By:  Gary H. Hunt, W. Brand Inlow,

        Edward A. Johnson, D. Fleet

        Wallace, and Gary T. Wescombe, as

        Trustees of the G REIT Liquidating

        Trust dated January 22, 2008

 	 	 
	By:  	                                      /s/ Andrea R. Biller
 	 	 
	 	Name:  	Andrea R. Biller 	 	 
	 	Title:  	Authorized Representative 	 	 
	 

S-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]