Document:

EX-10.1

RETIREMENT AND CONSULTING AGREEMENT

This Retirement and Consulting Agreement (the “Agreement”) is made and entered into effective as of
September 30, 2007 (the “Effective Date”), by and between Jeffrey L. McWaters (the “Executive”) and
AMERIGROUP Corporation, a Delaware corporation (the “Company”).

AGREEMENT

In consideration of the mutual covenants herein contained and the continued employment of the
Executive by the Company (or one of its affiliates), the parties agree as follows:

1. Duties; Compensation; Retirement Date. Effective August 31, 2007, the Executive
resigned his position as Chief Executive Officer of the Company and all officer positions he held
with Company subsidiaries. From September 1, 2007, the Executive shall continue to serve as
Chairman of the Board of Directors of the Company (the “Board”) through the date that the Company’s
Annual Meeting of Stockholders is held in 2008 (the “2008 Annual Meeting”), and immediately prior
to the 2008 Annual Meeting the Executive shall resign as Chairman of the Board and as a director of
the Company and all Company subsidiaries unless the Board otherwise requests that the Executive
remain as a director at such time. The Executive shall remain an employee of the Company (or one
of its affiliates) through the date of the 2008 Annual Meeting or, if later, the last day of the
calendar month in which the 2008 Annual Meeting occurs (the “Retirement Date”), at which time the
Executive shall retire from employment with the Company and all Company subsidiaries as applicable.
For the period beginning September 1, 2007 through the Retirement Date, the Executive shall
receive a salary of $37,500 per month, the bonuses and equity treatment pursuant and subject to the
provisions of Section 4 hereof, the benefits as described in and subject to the terms of Sections 5
and 6 hereof and reimbursement for reasonable and necessary out-of-pocket expenses incurred in
connection with his duties hereunder in accordance with the Company’s standard policies, in lieu of
receiving any other compensation with respect to his service on the Board or any committee of the
Board; during this period the Executive shall be available to the Company a minimum of twenty (20)
hours per week and shall be responsible for his duties as Chairman of the Board and such other
duties as may be reasonably requested from time to time by the Company’s Chief Executive Officer.

2. Consulting Services and Fee. The Company and the Executive agree that the
Executive will provide consulting services to the Company for the period commencing on the first
day following the Retirement Date and ending on August 31, 2009 (the “Consulting Period”). The
Consulting Period shall be extended only by the written agreement of the Executive and the Company.
The services which the Executive shall provide shall be determined by the Chief Executive Officer
of the Company (or his designee). The Executive shall be paid a fee for such consulting services
at the rate of $27,083 per month during the Consulting Period, those benefits in Section 6.2 that
are specifically provided during the Consulting Period and reimbursement for necessary
out-of-pocket expenses incurred in connection with his duties hereunder in accordance with the
Company’s standard policies. The dates of performance of the Executive’s consulting services
hereunder shall be

determined by the Company, subject to mutual agreement of the parties. The parties hereby agree
that the amount of services to be provided by the Executive from and after the beginning of the
Consulting Period shall be less than the level of services that would result in the Executive’s
retirement not being treated as a separation from service for purposes of Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”). This consulting arrangement, together
with the Company’s obligation to provide the payments and benefits described in this Section 2 and
Section 4.2, are expressly conditioned upon the Executive executing and delivering a general
release of claims against the Company on the Retirement Date substantially in the form attached
hereto as Exhibit A (and the expiration of any revocation period applicable thereto) as described
in Section 3 hereof.

3. Release.

3.1 Acknowledgement. The Executive acknowledges that the certainty provided by reaching
agreement with the Company as to the amounts of the payments and benefits described herein is
adequate and satisfactory consideration for the assurances made by the Executive in this Agreement,
including, without limitation, the general release of claims to be given by the Executive pursuant
to Sections 2 and 3.2 hereof.

3.2 General Release of Claims. The Executive agrees that in the event he executes a general
release of claims against the Company substantially in the form attached hereto as Exhibit A on or
shortly after the Retirement Date and such general release becomes effective pursuant to its terms,
the Executive shall (a) serve as a consultant to the Company during the Consulting Period and be
entitled to the payments set forth in Section 2 above; and (b) be eligible to receive long term
cash incentive payments from the Company in accordance with the specific terms set forth in
Sections 4.2 below.

4. Bonus Payments; Equity Treatment. 

4.1 2007 Annual Bonus. The Executive’s Annual Target MJO Cash Bonus for 2007 is $1,268,750,
provided that the determination whether to award a MJO Cash Bonus and its terms and amount shall be
in the sole good faith discretion of the Compensation Committee of the Board (the “Compensation
Committee”) taking into account and consistent with the Compensation Committee’s policies at that
time as applied to other senior executive level associates of the Company, the achievement of the
applicable Company performance goals in 2007, the achievement of the applicable Executive
performance goals in 2007 and, subject to Section 7.2, the Executive’s continued employment through
the applicable award date with respect to such bonus; it being agreed that for purposes solely of
this Agreement that the Executive shall be deemed to have achieved his performance goals in 2007 as
measured through August 31, 2007, but that any such annual bonus is subject to the Company’s
performance and the sole good faith discretion of the Compensation Committee. The Compensation
Committee may, it its sole good faith discretion, award the Executive a MJO Cash Bonus for 2007 in
excess of, or, in exercising its negative discretion, less than the Annual Target in the event the
Company outperforms its goals. Such annual bonus payment, if any, shall be made to the Executive
at the time such bonus payments are made to eligible employees generally. For the purposes of this
Section 4.1, the MJO Cash Bonus for 2007 shall not be prorated, notwithstanding the fact that
Executive did not serve as Chief Executive Officer for the entire fiscal year.

4.2 Long Term Cash Incentive Awards. Subject to the provisions set forth in Section 3.2
above, the Executive shall continue to be eligible to receive his long term cash incentive payments
based on yearly installments of $222,272 pursuant to the Company’s 2009 Long Term Incentive Plan
(the program covering 2006-2008, inclusive) and the Company’s 2010 Long Term Incentive Plan (the
program covering 2007-2009, inclusive) to the extent such installments are earned and payable under
the terms of the applicable Long Term Incentive Plan, with such payments made to the Executive at
the time such bonus payments are made to eligible employees generally even if the Executive is not
an employee of the Company at the time of such payment (provided the Executive has not been
terminated by the Company for Cause (as defined below) prior to the respective payment dates), but
with no installments for 2009 and installments for 2008 pro-rated for the period of the Executive’s
service through the Retirement Date. For the avoidance of doubt, the Executive shall not be
eligible to receive any payment with respect to the Company’s 2011 Long Term Incentive Plan, if any
(the program covering 2008-2010, inclusive).

4.3 Eligibility for Equity Awards in 2008. The Executive shall be eligible for consideration
for an equity award for 2007 (to be awarded in 2008) with a baseline equity grant target value of
$736,875, provided that the determination whether to make any equity award and its value shall be
in the sole good faith discretion of the Compensation Committee taking into account and consistent
with the Compensation Committee’s policies at that time as applied to other senior executive level
associates of the Company, the achievement of the applicable Company performance goals in 2007, the
achievement of the applicable Executive performance goals in 2007 and the Executive’s continued
employment through the applicable grant date with respect to such equity award; provided, however,
that the Executive shall not be eligible to receive an “outperform” equity award for 2007. In the
event that the Compensation Committee grants an equity award to the Executive as contemplated by
this Section 4.3, such award shall be comprised of (a) 25% time based restricted stock, (b) 50%
nonqualified stock options and (c) 25% premium nonqualified stock options. Such award, if any,
shall be evidenced by the form of Nonqualified Stock Option Agreement and Restricted Stock
Agreement to evidence equity awards to other Company senior executives for equity awards for 2007
(awarded in 2008), if any, and shall provide, among other things, that all options shall vest
quarterly through June 30, 2009 and all shares of restricted stock shall be subject to a vesting
schedule that concludes no later than the end of the Consulting Period. The parties agree that for
purposes solely of this Agreement the Executive shall be deemed to have achieved his performance
goals in 2007 as measured through August 31, 2007 but that any equity award is subject to the
Company’s performance and the sole good faith discretion of the Compensation Committee.

4.4 Treatment of Existing Equity Awards. Certain of the existing equity awards previously
granted by the Company to the Executive shall be modified and amended as follows:

(a) The stock options granted to the Executive pursuant to that certain Nonqualified Stock
Option Agreement dated as of February 14, 2006 (the “2006 Option Agreement”) and pursuant to those
certain Nonqualified Stock Option Agreements dated as of March 13, 2007 (the “2007 Option
Agreements”) which are not vested as of the Effective Date shall immediately vest and become
exercisable as of the Effective Date and this Section 4.4(a) shall be deemed an amendment to the
2006 Option Agreement and the 2007 Option Agreements;

(b) The shares of restricted stock granted to the Executive pursuant to that certain
Restricted Stock Agreement dated as of March 13, 2007 (the “2007 RSG Agreement”) for which the
restrictions on transfer set forth in Section 2 of the 2007 RSG Agreement have not lapsed by the
Effective Date shall immediately lapse as of the Effective Date and this Section 4.4(b) shall be
deemed an amendment to the 2007 RSG Agreement; and

(c) The post-employment termination exercise period for any stock options granted to the
Executive pursuant to that certain Incentive Stock Option Agreement dated as of February 11, 2004
(the “2004 Option Agreement”), that certain Incentive Stock Option Agreement dated as of February
7, 2002 (the “2002 Option Agreement”), and that certain Incentive Stock Option Agreement dated as
of July 10, 2000 (the “2000 Option Agreement” and collectively with the 2004 Option Agreement, the
2002 Option Agreement and the 2000 Option Agreement, the “Vested Option Agreements”)) shall be
extended from (i) ninety (90) days to twelve (12) months from the date of such termination in the
event of termination of the Executive’s employment other than for termination for Cause (as
defined in the Vested Option Agreements) and (ii) six (6) months to twelve (12) months from the
date of such termination in the event of termination of the Executive’s employment as a result of
death or Disability (as defined in the Vested Option Agreements). This Section 4.4(c) shall be
deemed an amendment to the Vested Option Agreements.

Except as expressly provided herein, the Executive’s existing stock options and restricted stock
awards, including, without limitation, the 2007 Option Agreements, the 2006 Option Agreement, the
2007 RSG Agreement, the Vested Option Agreements and that certain Restricted Stock Agreement dated
February 14, 2006 (granting performance based restricted stock), shall continue to be subject to
their existing terms and conditions, as set forth in the applicable equity plan and award
agreements. In addition, the Company’s policies with respect to trading of Company securities shall
continue to apply to the Executive, in accordance with their terms and consistent with his
relationship with the Company at any given time (i.e, as member of the board of directors through
the Retirement Date and as a former employee during the Consulting Period and thereafter); it being
understood that Executive shall be deemed a “Section 16 Officer” under the Company’s Policy on
Trading in Company Securities through the Retirement Date.

5. Treatment of Deferred Compensation Benefits. The Executive’s benefits under the
Company’s 2005 Executive Deferred Compensation Plan and 2002 Executive Deferred Compensation Plan,
if any, shall be calculated and distributed based on the terms and conditions of such plans as in
effect on the Retirement Date.

6.

1

Earned and Unpaid Salary; Other Benefits. 

6.1 Earned and Unpaid Salary. On or as soon as practicable following the Retirement Date, the
Company shall pay to the Executive, in a cash lump sum, any portion of his salary that is earned
and unpaid as of the Retirement Date, as well as a cash payment in respect of granted but unused
vacation pay in accordance with the Company’s policy, which payment shall be based upon the
Executive’s salary as in effect immediately prior to the Retirement Date.

6.2 Other Benefits. The Company shall also pay or provide to the Executive all compensation
and benefits payable to him under the terms of the Company’s compensation and benefit plans
(including qualified retirement plans), programs, or arrangements as in effect immediately prior to
the Retirement Date. Through the Retirement Date, the Executive shall participate on the same
basis with all other management employees of the Company in the Company’s standard benefits package
generally available for senior management, as well as all other officers and employees of the
Company (including, without limitation, an annual medical exam, personal use of the Company’s
aircraft (provided the Executive reimburses the Company for the cost thereof in accordance with the
Company’s policy) and financial planning services). Through the Retirement Date, the Executive
shall be entitled to obtain reimbursement on an after tax basis for (or have the Company directly
pay) the amount necessary to pay the premiums on a standard $1 million term life insurance policy,
payable upon the Executive’s death to his designated beneficiary; in the event the Company pays the
premium directly, the Company shall indemnify the Executive on an after tax basis for all taxes
incurred by him on the Company paid premiums. During the Consulting Period, Executive shall be
entitled to use the Company’s aircraft in connection with his duties performed for the Company in
accordance with Company policies. From the date hereof through the Consulting Period, the Company
shall provide the Executive with reasonable administrative support, including office space outside
of the Company’s offices and executive-level secretarial support. The parties acknowledge and
agree that such administrative support is necessary for the provision of Executive’s services
hereunder and is not intended to be additional compensation to the Executive. To the extent that
such administrative support is deemed taxable income to the Executive, the Company shall reimburse
the Executive for his tax liability associated therewith (including, a tax “gross-up” for such
reimbursement calculated by the Company), subject to reasonable substantiation by the Executive.

7. Termination of Employment.

7.1 Termination for Cause. The Company may, immediately and unilaterally, terminate the
Executive’s employment hereunder for “Cause” prior to the Retirement Date upon written notice to
the Executive. Termination of the Executive’s employment or service by the Company shall
constitute a termination for “Cause” under this Section 7.1 if such termination is for one or more
of the following causes, as determined by the Board of Directors of the Company by a resolution
adopted by two-thirds (2/3) of its members (excluding the Executive):

(a) the substantial and continuing failure of the Executive to render services to the Company
or any subsidiary or affiliate in accordance with the Executive’s obligations and position with
the Company, subsidiary or affiliate, after 30 day’s notice from the President of the Company or
any subsidiary or affiliate, such notice setting forth in reasonable detail the nature of such
failure, and in the event the Executive fails to cure such breach or failure within 30 days of
notice from the Company or any subsidiary or affiliate, if such breach or failure is capable of
cure;

(b) the Executive’s dishonesty, gross negligence, breach of fiduciary duty;

(c) the commission by the Executive of an act of fraud or embezzlement, as found by a court
of competent jurisdiction;

(d) the conviction of the Executive of a felony; or

(e) a material breach of the terms of this Agreement or any other agreement with the Company
or any subsidiary or affiliate, provided that the Company or any subsidiary or affiliate provides
the Executive with adequate notice of such breach and the Executive fails to cure such breach, if
the breach is reasonably curable, within thirty (30) days after receipt of such notice.

In the event of a termination for Cause pursuant to the provisions of clauses (a) through (e)
above, inclusive, the Executive shall cease to be entitled to any payments or benefits hereunder,
except as may be required by law.

7.2 Termination Without Cause. In the event the Company terminates the Executive’s employment
without Cause prior to the Retirement Date, the Executive shall be entitled to receive his monthly
salary from the date of such termination through May 31, 2008 (or, if later, the date of
termination of employment, the “Termination Date”)), and the long term cash incentive payments
contemplated by Section 4.2 to the extent such installments are earned and payable under the terms
of the applicable Long Term Incentive Plan, with such payments made to the Executive at the time
such bonus payments are made to eligible employees generally even if the Executive is not an
employee of the Company at the time of such payment. In the event the Company terminates the
Executive’s employment without Cause prior to the date on which MJO Cash Bonuses for 2007, if any,
are paid to the other senior executive level associates of the Company (including the Executive),
the Executive shall be entitled to receive the MJO Cash Bonus for 2007 at an amount not less than
the Annual Target. Additionally, upon such termination without Cause, the Compensation Committee
may, in its sole discretion, (i) grant an equity award as contemplated by Section 4.3, (ii) vest
all or a portion of any unvested stock options, restricted stock or time-based restricted stock
owned by the Executive as of the Termination Date and/or (iii) extend the exercise period of any
stock options previously granted to Executive. The Executive agrees that any compensation or other
benefit provided to him pursuant to this Section 7.2 shall be subject to Executive executing and
delivering to the Company a general release of claims against the Company as of the Termination
Date substantially in the form attached hereto as Exhibit A and such general release becoming
effective pursuant to its terms.

7.3 Death or Disability. In the event of the Executive’s death prior the Retirement Date, the
Company shall pay to the Executive’s estate the amounts payable to Executive under Section 7.2 as
if the Executive’s employment had been terminated without Cause plus the benefits payable pursuant
to the $1 million term life insurance policy described in Section 6.2, which shall be payable to
the Executive’s designated beneficiary. In the event that the Executive’s employment or service
with the Company terminates prior to the Retirement Date due to the Executive’s physical incapacity
or mental incompetence (the Executive shall be deemed to have suffered physical incapacity or
mental incompetence if he is unable to perform the essential functions of his job duties hereunder
after any ninety (90) work days out of any 365-day period), the Executive shall be entitled to
receive the amounts payable to Executive under Section 7.2 as if the Executive’s employment had
been terminated without Cause, provided, however, the Company shall be entitled to reduce the cash
payments so required by the amount of any disability payments the Executive receives under any
disability policy maintained by the Company for his benefit. Further, in addition to the
foregoing, in the event of termination of employment as a result of death or disability, the
Executive shall be entitled to receive any long term incentive payments described in Section 4.2 of
this Agreement in accordance with the terms of the applicable long term incentive plan(s).

7.4 Change in Control. Notwithstanding anything to the contrary in this Section 7, in the
event the Executive’s employment is terminated by the Company prior to the Retirement Date in
connection with a Change in Control (as such term is defined in the Company’s Change in Control
Benefit Policy), the Executive shall be eligible to receive the benefits to which he is entitled
pursuant to the Company’s Change in Control Benefit Policy. The Executive’s Multiple (as such term
is defined in the Company’s Change in Control Benefit Policy) shall be three (3). Effective on and
after the Retirement Date, the Executive shall cease to be eligible for coverage or benefits under
the Company’s Change in Control Benefit Policy.

8. General Provisions.

8.1 Indemnification. The Executive shall be entitled to coverage under the Company’s
indemnification policies and shall contemporaneously execute a copy of the Company’s standard
indemnification agreement substantially in the form attached hereto as Exhibit B. The indemnity
coverage as set forth in this section shall include the Executive’s employment as Chairman of the
Board. The Executive agrees to execute any future generally applicable amendment to, or replacement
of, such standard indemnification agreement form so long as the Executive’s rights under any
indemnification agreement are not reduced. Further, the Company agrees to indemnify, defend and
hold Executive harmless from and in respect of any damages, costs and reasonable expenses incurred
by the Executive in the defense of a claim by a third party against the Executive arising directly
from any actions taken by the Executive on behalf of the Company during the Consulting Period at
the written request of the Company, except to the extent that such damages, costs or expenses
result from or are related to Executive’s dishonesty, gross negligence, willful misconduct or
failure to obey the written instructions of the Company.

8.2 Covenant Not to Compete.

(a) In consideration for the payments and benefits to be provided to the Executive pursuant
to this Agreement, and as a material condition to the payments and provision of such benefits, the
Executive hereby expressly agrees as follows:

(i) The Executive shall act in the best interests of the Company and its subsidiaries and
affiliates (each, an “AMERIGROUP Company” and collectively, the “AMERIGROUP Companies”) throughout
the period of his employment with any of the AMERIGROUP Companies; and

(ii) at all times while employed by any AMERIGROUP Company and at all times during the Covered
Period (defined below), the Executive shall not (A) compete with any AMERIGROUP Company by serving
a Competitor (defined below) in any managerial capacity, or in any capacity that influences
business strategy, with respect to a Covered Product or Service (defined below) that the Competitor
is offering in a Covered Area (defined below) or developing to offer in a Covered Area, or (B)
solicit for employment, interfere with the employment relationship of or endeavor to entice away
any employee of any AMERIGROUP Company.

(b) As used herein,

(i) The “Covered Period” means the twenty-four (24) month period beginning on August 31, 2007
and ending on the second anniversary of such date.

(ii) “Competitor” means any entity or person that provides or is planning to provide a Covered
Product or Service in competition with a Covered Product or Service that an AMERIGROUP Company is
actively developing, marketing, providing or selling.

(iii) “Confidential Information” means an AMERIGROUP Company’s material non-public information
concerning its business and affairs, including, without limitation, trade secrets, strategies,
business plans, marketing and advertising plans, member and provider information, employee and
personnel information, contracts, training manuals, financial projections, budgets and non-public
financial data (including, without limitation, statements with premium revenue and/or provider
compensation terms, reports of actuaries, medical loss reports, balance sheets and income
statements).

(iv) A “Covered Product or Service” shall mean a managed health care product or service
offered or provided to any beneficiary of and/or participant in any Medicaid, Medicaid-related, or
SSI program, any government-funded children’s health insurance program or any federal and/or state
sponsored health care program that is substantially similar to any of such programs.

(v) The “Covered Area” shall consist of each city, county and other similar governmental
territory in which an AMERIGROUP Company provides or has made material efforts to develop and
provide a Covered Product or Service to its members, if in the course of the Executive’s employment
with an AMERIGROUP Company he (A) has provided services to an AMERIGROUP Company with respect to
the Covered Products or Services in such city, county or governmental territory, or (B) reviewed or
discussed Confidential Information of an AMERIGROUP Company with respect to the Covered Product or
Service in such city, county or governmental territory.

(c) As soon as reasonably practicable following the Retirement Date in any event not later
than May 31, 2008, the Company shall provide to the Executive in writing a list of products and
services and geographical locations that it reasonably believes are subject to the definition of
“Covered Product or Service” and the definition of “Covered Area”, as applicable. The parties
acknowledge and agree that such written list shall be binding on the parties with respect to the
interpretation of the terms “Covered Product or Service” and “Covered Area”.

(d) Notwithstanding the foregoing, the Executive expressly agrees that any breach of the
provisions of this Section 8.2 or the Release attached as Exhibit A by the Executive shall
constitute a material breach of this Agreement and shall relieve the Company of all obligations
under this Agreement, including, but not limited to, its obligation to engage Executive as a
consultant pursuant to Section 2 above and to provide Executive with the payments set forth
therein. Executive further agrees that any breach by the Executive of the covenants made in
Sections 8.2(a), (b) and (c) above may cause irreparable damage to one or more of the AMERIGROUP
Companies and that in the event of such breach each AMERIGROUP Company shall have, in addition to
any and all remedies of law, the right to an injunction, specific performance or other equitable
relief to prevent the violation of the Executive’s obligations hereunder. The Executive agrees
that any such AMERIGROUP Company may seek and obtain injunctive relief without posting an
injunction bond. The Executive hereby acknowledges and agrees that he shall have access to
confidential and proprietary information and trade secrets concerning the AMERIGROUP Companies
during his employment and that the covenants in Sections 8.2(a), (b) and (c) are reasonable in
scope and necessary to protect the legitimate business interests of the AMERIGROUP Companies. The
Executive hereby further expressly acknowledges and agrees that each AMERIGROUP Company is an
express third party beneficiary of the terms of this Agreement. (For the avoidance of doubt, the
Executive acknowledges and agrees that the experience and/or knowledge that he acquires in the
course of his employment with an AMERIGROUP Company may relate not only to the Covered Products and
Services of the AMERIGROUP Company with which he is employed, but also those of other AMERIGROUP
Companies.)

8.3 Severability. The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement. If any
provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion
of such provision, together with all other provisions of this Agreement, shall remain valid and
enforceable and continue in full force and effect to the fullest extent consistent with law.

8.4 Status as Consultant. Nothing herein contained shall be construed to constitute the
parties hereto, with respect to the Consulting Period, as partners or as joint venturers, or either
as agent of the other, or as employer and employee. By virtue of the relationship described
herein, the Executive’s relationship to the Company during the Consulting Period shall be that of
an independent contractor only and the Executive shall perform all services pursuant to this
Agreement in respect of the Consulting Period without the power to bind or represent the Company
for any purpose whatsoever. The Executive shall not provide any services under the Company’s
business name during the Consulting Period and shall not present himself as an employee of the
Company during the Consulting Period. Subject only to such specific limitations as are contained
in this Agreement, the manner, means, details or methods by which the Executive performs his
obligations under this Agreement during the Consulting Period shall be solely within the
Executive’s discretion. The Company shall not have the authority to, nor shall it, supervise,
direct or control the manner, means, details or methods utilized by the Executive to perform his
obligations under this Agreement during the Consulting Period and nothing in this Agreement shall
be construed to grant the Company any such authority.

8.5 Entire Agreement. The Executive represents that, in executing this Agreement, he has not
relied upon any representation or statement made by the Company, other than those set forth herein,
with regard to the subject matter, basis, or effect of this Agreement or otherwise. The Executive
acknowledges that the payments and benefits described in this Agreement are in lieu of and in full
satisfaction of any obligations, including any amounts that might be payable or securities
deliverable, under any contract, agreement, plan, policy, program, practice or otherwise, past or
present, of the Company or any of its affiliates, including, but not limited to, the Second Amended
and Restated Employment Agreement by and between the Executive and the Company dated October 2,
2000, as amended (the “Existing Employment Agreement”), other than any accrued and vested benefits
under any tax-qualified retirement plan. The Executive hereby waives any rights he might otherwise
have with respect to such obligations. Effective as of the close of business on August 31, 2007,
the Existing Employment Agreement ceased to be of any further force or effect. The Executive
agrees that neither the execution of this Agreement nor the consummation of any of the transactions
contemplated hereby shall constitute “Changed Circumstances” within the meaning of the Existing
Employment Agreement and that no severance or other benefits otherwise shall be payable thereunder
by reason of the execution of this Agreement or the consummation of any of the transactions
contemplated hereby. Notwithstanding anything to the contrary in this Section 8.5, this Agreement
shall have no effect on any stock option agreement or restricted stock agreement between the
parties (including those agreements referenced and except to the extent provided in Section 4.4),
or on any employee noncompetition, nondisclosure, and developments agreement between the parties,
and such agreements shall remain in full force and effect in accordance with their respective
terms; provided, however, that, if there is a conflict between any provision in any such agreement
and a provision in this Agreement, the provision in this Agreement shall control.

8.6 Successors and Assigns. This Agreement is personal to the Executive and, without the prior
written consent of the Company, shall not be assignable by the Executive otherwise than by shall or
the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal representatives. This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.

8.7 Governing Law; Captions; Amendment. This Agreement, the employment and consulting
relationships contemplated herein and any claim arising from such relationships, whether or not
arising under this Agreement, shall be governed by and construed in accordance with the internal
laws of the Commonwealth of Virginia, without regard to any conflict of law principles. The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
This Agreement may not be amended or modified except by a written agreement executed by the parties
hereto or their respective successors and legal representatives.

8.8 Withholding; Other Tax Considerations. Notwithstanding any other provision of this
Agreement, the Company may withhold from amounts payable under this Agreement all federal, state,
local, and foreign taxes that are required to be withheld by applicable laws or regulations. With
respect to the Consulting Fee, the Executive acknowledges that at all times during the Consulting
Period, the Executive shall be an independent contractor in providing services as specified
hereunder. The Executive hereby acknowledges responsibility for all federal and state income
taxes, Federal Insurance Contribution Act taxes and workers’ compensation and unemployment
compensation taxes, if applicable, due with respect to his services hereunder during the Consulting
Period.

8.9 Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same instrument.

8.10 Review by Counsel. Executive represents and warrants that, in negotiating and executing
this Agreement, Executive has had an adequate opportunity to consult with competent counsel or
other representatives of Executive’s choosing concerning the meaning and effect of each term and
provision hereof, including his tax advisors, and that there are no representations, promises or
agreements other than those expressly set forth in writing herein.

8.11 Negotiated Agreement. The parties agree that this is a negotiated agreement and that no
term herein shall be construed against a party merely because that party or its attorneys proposed
or drafted such term.

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement on the day
and year first above written.

AMERIGROUP CORPORATION

By:

Stanley F. Baldwin, Executive Vice President, 

Secretary and General Counsel

EXECUTIVE:

     

JEFFREY L. McWATERS

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EXHIBIT A

RELEASE AGREEMENT

In consideration of the mutual promises and commitments specified in the Retirement and
Consulting Agreement between Executive and the Company dated September 30, 2007 (“Retirement and
Consulting Agreement”), the parties agree as follows:

1. General Release.

(a) Executive states and affirms that Executive has not previously filed or joined in any
complaints, charges, or lawsuits against AMERIGROUP with any governmental agency or court of law or
equity. Executive, for and on behalf of Executive and Executive’s estate, heirs, spouse, life
partner, representatives, successors and assigns, waives, releases and forever discharges
AMERIGROUP and all related entities, together with its present or former directors, officers,
partners, employees, attorneys and agents, from any and all rights, claims, charges, complaints,
causes of action, promises, agreements, controversies, obligations, damages and liabilities of
every kind whatsoever, known or unknown, that Executive has or may have relating to or arising out
of Executive’s employment with AMERIGROUP and the separation thereof, including but not limited to
any claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation,
defamation, liability in tort, claims of any kind that may be brought in any court or
administrative agency, any claims under Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the
Equal Pay Act, the Executive Retirement Income Security Act, the Older Workers Benefit Protection
Act, the Pregnancy Discrimination Act, Virginia Human Rights Law, each as amended, or any other
Executive Orders, federal, state or local law relating to employment, employee benefits or the
termination of employment, or any other claim arising out of or relating to Executive’s employment,
excepting any vested rights Executive may have under any of the Company’s benefits plans.

(b) This Release Agreement does not waive any rights or claims that Executive may have which
arise after the date the Executive signs this Release Agreement or which cannot be waived or
released as a matter of law; provided however, that this Release Agreement does
waive any claims or rights that Executive has or may have relating to or arising out of the Second
Amended and Restated Employment Agreement by and Between the Executive and the Company dated
October 2, 2000 (as amended), which claims or rights may arise before, upon or after the date
Executive signs this Release Agreement. Executive also represents that Executive has not given,
sold, assigned, or transferred to any one else, any claim, or a portion of a claim discussed in
this Release Agreement.

(c) This Release Agreement does not include a release of the Executive’s rights or claims to
any payments of any vested qualified retirement benefits under the Company’s ERISA plans or any
other benefit plan described in the Retirement and Consulting Agreement. This Release Agreement
does not include a release of the Executive’s right to continuation in the Company’s medical plans
as provided by COBRA.

(d) This Release Agreement does not include a release of any rights or claims the Executive
may have under the Indemnification Agreement attached to the Retirement and Consulting Agreement as
Exhibit B.

2. Claims and Actions.

(a) Executive promises never to file a lawsuit asserting any claims that are released in this
Release Agreement.

(b) This Release Agreement does not waive any rights or claims that Executive may have which
arise after the date the Executive signs this Release Agreement.

(c) Executive agrees that he has been granted any leave to which he was entitled under the
Family and Medical Leave Act or related state or local leave or disability accommodation laws, and
that there has been no retaliation as a result of, interference with, or restraint of my use of
such leave. Executive further agrees that he has no known workplace injuries or occupational
diseases.

3. Special ADEA Waiver and Release Notification.

(a) The General Release, Section 1 above, of this Release Agreement, includes a waiver and
release of all claims under the Age Discrimination in Employment Act (“ADEA”) and, therefore,
pursuant to the requirements of the ADEA, Executive acknowledges that Executive has been:

(i) advised that the waiver and release includes, but is not limited to, all claims under the
ADEA arising up to and including the date of execution of this waiver and release;

(ii) advised to consult with an attorney and/or other advisor concerning Executive’s rights
and obligations under this Release Agreement prior to Executive’s execution of it. Executive
understands that whether or not to do so is Executive’s decision. Executive agrees, however, that
AMERIGROUP shall not be required to pay any of Executive’s attorney’s fees in this or any related
matter or lawsuit, now or later, and that the payments and benefits referenced above are in full
and complete settlement of all matters between Executive and AMERIGROUP, including but not limited
to, attorney’s fees and costs;

(iii) given at least twenty-one (21) days within which to consider this Release Agreement; and

(iv) advised that Executive may revoke this Release Agreement within seven (7) days of
Executive’s signing it. Revocation can be made by delivering a written notice of revocation to
Stanley F. Baldwin, General Counsel, AMERIGROUP Corporation, 4425 Corporation Lane, Suite 300,
Virginia Beach, Virginia 23462. For such revocation to be effective, Mr. Baldwin must receive
notice no later than 5:00 p.m. on the seventh (7th) calendar day after Executive signs
this Release Agreement. If Executive revokes this Release Agreement, it shall not be effective or
enforceable and Executive will not receive the payments or benefits set forth in Sections 2 and 4.2
of the Retirement and Consulting Agreement.

4. Nondisparagement.

Executive agrees that Executive will not make, or cause to be made, any comments (whether
written or oral) relating to AMERIGROUP or any of its present or former directors, officers,
partners, employees, attorneys or agents which may tend to injure the business or reputation of
AMERIGROUP. AMERIGROUP agrees that it will not authorize its present directors, officers, partners,
employees, attorneys or agents to make any comments (whether written or oral) relating to Executive
which may tend to injure the business reputation of Executive. Nothing herein shall preclude either
party from sharing information about the other party with a government agency subject to a subpoena
or from providing testimony in any legal proceeding.

5. No Admission.

It is understood and agreed that, prior to entering into this Release Agreement, AMERIGROUP
has admitted no liability or any improper conduct, all of which the Company specifically denies.

6. No Waiver or Breach or Remedy.

A waiver by AMERIGROUP of the breach of any of the provisions of this Release Agreement by
Executive shall not be deemed a waiver by AMERIGROUP of any subsequent breach, nor shall recourse
to any remedy hereunder be deemed a waiver of any other or further relief or remedy provided for
herein. A waiver by Executive of the breach of any of the provisions of this Release Agreement by
AMERIGROUP shall not be deemed a waiver by Executive of any subsequent breach, nor shall recourse
to any remedy hereunder be deemed a waiver of any other or further relief or remedy provided for
herein.

7. Severability.

In the event that any provision of this Release Agreement is determined to be invalid by a
court or tribunal of competent jurisdiction, all other provisions of this Release Agreement shall
remain in full force and effect.

8. Entire Agreement.

(a) This Release Agreement, in conjunction with the provisions of the Retirement and
Consulting Agreement, constitutes the entire agreement and understanding between the parties and
supersedes all other agreements between the parties whether oral or written with respect to the
subject matter hereto.

(b) The parties understand and agree that all terms of this Release Agreement are contractual
and are not a mere recital, and represent and warrant that they are competent and possess the full
and complete authority to covenant and agree as herein provided.

(c) Executive understands, agrees, and represents that the covenants made herein and the
releases herein executed may affect rights and liabilities of substantial extent and agrees that
the covenants and releases provided herein are in Executive’s best interest. Executive represents
and warrants that, in negotiating and executing this Release Agreement, Executive has had an
adequate opportunity to consult with competent counsel or other representatives of Executive’s
choosing concerning the meaning and effect of each term and provision hereof, and that there are no
representations, promises or agreements other than those expressly set forth in writing herein.
Executive acknowledges that Executive received a copy of this Release Agreement, and was offered a
reasonable period to consider it.

(d) The parties agree that this is a negotiated agreement and that no term herein shall be
construed against a party merely because that party or its attorneys proposed or drafted such term.

(e) The parties have carefully read this Release Agreement in its entirety; fully understand
and agree to its terms and provisions; intend and agree that it is final and binding and understand
that, in the event of a breach, either party may seek relief, including damages, restitution and
injunctive relief, at law or in equity, in a court of competent jurisdiction.

(f) Each party also agrees that, without receiving further consideration, it will sign and
deliver such documents and do anything else that is necessary in the future to make the provisions
of this Release Agreement effective.

9. Agreement Binding.

This Release Agreement shall be binding on the parties and upon their heirs, administrators,
representatives, executors, successors, and assigns and shall inure to their benefit and to that of
their heirs, administrators, representatives, executors, successors, and assigns.

10. Violation by Executive.

In the event that Executive violates any of the terms of this Release Agreement, AMERIGROUP
shall have the right to terminate any or all of its commitments herein and under the Retirement and
Consulting Agreement and to recover any monies or other considerations previously provided to
Executive and to pursue any other remedies available to AMERIGROUP.

11. Violation by AMERIGROUP.

In the event that AMERIGROUP violates any of the terms of this Release Agreement, AMERIGROUP
agrees that Executive shall be entitled to pursue any remedies available to him.

12. Voluntary.

Executive agrees that Executive has read and carefully considered this Release Agreement, and
has had the opportunity to ask questions of company representatives. Executive agrees that
Executive also had the opportunity to discuss this Release Agreement with an attorney. Executive
agrees that Executive is signing this agreement voluntarily and of Executive’s own free will.

13. Choice of Law.

This Agreement and the legal relationships among the parties hereto shall be governed by and
construed in accordance with the laws of the Commonwealth of Virginia, without regard to conflict
of laws principles. Each party hereby irrevocably consents, in any dispute, action, litigation or
other proceeding concerning this Agreement, to the jurisdiction of the state and federal courts
having venue for the City of Norfolk, Virginia, and irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of such suit, action or
proceeding in such court and further waives the right to object, with respect to such suit, action
or proceeding, that such court does not have jurisdiction over such party or that venue is
improper.

14. Section Headings.

The section headings in this Agreement are intended to be for reference purposes only and
shall in no way be construed to modify or restrict any of the terms or provisions of this
Agreement.

15. No Third Party Rights.

This Agreement is entered into solely between AMERIGROUP and Executive and shall not be deemed
to create any rights in any third parties or to create any obligations of AMERIGROUP to any third
party, except as to any rights of Executive’s Estate, as provided under this Agreement.

16. Counterparts.

This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK –

SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed the foregoing
Release Agreement effective  .

	 	 	 
	
 
	 	AMERIGROUP Corporation

By:
	Executive

	 	Name:
	Jeffrey L. McWaters

	 	Title:

5

EXHIBIT B

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT is made as of this 30th day of September, 2007, by and between
Jeffrey L. McWaters (the “Indemnitee”) and AMERIGROUP Corporation, a Delaware corporation with a
principal place of business at 4425 Corporation Lane, Suite 300, Virginia Beach, Virginia 23462
(the “Company”).

RECITALS:

A. It is essential that the Company retain and attract as directors and officers the most
capable persons available.

B. The Indemnitee is a director and/or officer of the Company.

C. Both the Company and the Indemnitee recognize the increased risk of litigation and other
claims being asserted against directors and officers of public companies.

D. The Bylaws of the Company require the Company to indemnify directors, officers and certain
other persons to the full extent permitted by law, and Indemnitee has been serving and continues to
serve as a director and/or officer of the Company, in part, in reliance on such Bylaws.

E. In recognition of the Indemnitee’s need for substantial protection against personal
liability in order to maintain the Indemnitee’s continued service to the Company in an effective
manner and the Indemnitee’s reliance on the aforesaid Bylaws and, in part, to provide the
Indemnitee with specific contractual assurance that the protection promised by such Bylaws will be
available to the Indemnitee (regardless of, among other things, any amendment to or revocation of,
such Bylaws or any change in the composition of the Company’s Board of Directors or any acquisition
transaction relating to the Company), the Company desires to provide in this Agreement for the
indemnification of and the advance of expenses to the Indemnitee to the full extent (whether
partial or complete) permitted by law, as set forth in this Agreement and, to the extent officers’
and directors liability insurance is maintained by the Company, to provide for the continued
coverage of the Indemnitee under the Company’s directors and officers liability insurance policies.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in consideration of the mutual covenants and obligations herein contained,
the parties hereto agree as follows:

1. Definitions. As used in this Agreement, the following terms shall have the
meanings specified below:

(A) "Change in Control”. Any of the following:

(i) The acquisition by any “person” or “group” (as defined in or pursuant to Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the
Company, any subsidiary thereof or any employee benefit plan of the Company or a subsidiary),
directly or indirectly, as “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
securities of the Company representing twenty percent (20%) or more of either the then outstanding
shares or the combined voting power of the then outstanding securities of the Company;

(ii) Either a majority of the directors of the Company elected at the Company’s annual
stockholders meeting shall have been nominated for election other than by or at the direction of
the “incumbent directors” of the Company, or the “incumbent directors” shall cease to constitute a
majority of the directors of the Company. The term “incumbent director” shall mean any director
who was a director of the Company on the date hereof and any individual who becomes a director of
the Company subsequent to the date hereof and who is elected or nominated by or at the direction of
at least two-thirds (2/3) of the then incumbent directors;

(iii) The shareholders of the Company approve (x) a merger, consolidation or other business
combination of the Company with any other “person” or “group” (as defined in or pursuant to
Sections 13(d) and 14(d) of the Exchange Act) or affiliate thereof, other than a merger or
consolidation that would result in the outstanding common stock of the Company immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into common
stock of the surviving entity or a parent or affiliate thereof) more than fifty percent (50%) of
the outstanding common stock of the Company or such surviving entity or a parent or affiliate
thereof outstanding immediately after such merger, consolidation or other business combination, or
(y) a plan of complete liquidation of the Company or an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets; or

(iv) Any other event or circumstance which is not covered by the foregoing subsections but
which the Board of Directors of the Company determines to affect control of the Company and with
respect to which the Board of Directors adopts a resolution that the event or circumstance
constitutes a Change of Control for purposes of this Agreement.

(v) The date of a Change of Control under this Section 1(A) above is the date on which an
event described in Sections 1(A)(i), 1(A)(ii), 1(A)(iii), or 1(A)(iv) above occurs.

(vi) If, following a Change of Control and a dispute with the Company regarding the terms of
this Section 1(A) and any related provision of this Agreement, the Indemnitee collects any part or
all of the severance pay provided under this Section 1(A) by or through the assistance of legal
counsel, the Company will pay all costs of any such collection or enforcement, including reasonable
attorneys’ fees and other out of pocket expenses incurred by the Indemnitee, up to that point when
the Company offered to settle the dispute for an amount equal to the amount that the Indemnitee is
entitled to recover.

(vii) The payments described in this Section 1(A) will be due the Indemnitee regardless of any
subsequent employment obtained by the Indemnitee.

(B) "Claim”. Any threatened, pending or completed action, suit, judgment,
investigation or proceeding, and any appeal thereof, whether civil, criminal, administrative or
investigative and/or any inquiry or investigation, whether conducted by the Company or any other
party that the Indemnitee in good faith believes might lead to the institution of any such action.

(C) "Expenses”. Include attorneys’ fees and all other costs, expenses, and
obligations paid or incurred in connection with investigating, defending, being a witness in or
participating in (including on appeal), or preparing to defend, be a witness in or participate in
any Claim relating to any Indemnifiable Event.

(D) "Indemnifiable Event”. Any event, occurrence or circumstance related to the fact
that the Indemnitee is or was a director or officer of the Company, or is or was serving at the
request of the Company as a director, officer, employee, trustee, agent or fiduciary of another
corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, or by
reason of anything done or not done by the Indemnitee in any such capacity.

(E) "Potential Change in Control”. Shall be deemed to have occurred if (a) the
Company enters into an agreement or arrangement, the consummation of which would result in the
occurrence of a Change in Control; (b) any person (including the Company) publicly announces an
intention to take or to contemplate taking actions which if consummated would constitute a Change
in Control; (c) any person (other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company acting in such capacity or a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company), who is or becomes the beneficial owner, directly or indirectly,
of securities of the Company representing ten percent (10%) or more of the combined voting power of
the Company’s then outstanding Voting Securities increases his beneficial ownership of such
securities by five percent (5%) or more over the percentage so owned by such person on the date
hereof; or (d) the Board of Directors adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has occurred.

(F) "Reviewing Party”. Any appropriate person or body consisting of a member or
members of the Company’s Board of Directors, including the Special Independent Counsel referred to
in Section 2(C) (or, to the fullest extent permitted by law, any other person or body appointed by
the Board of Directors), who is not a party to the particular claim for which the Indemnitee is
seeking indemnification.

(G) "Voting Securities”. Any securities of the Company which vote generally in the
election of directors.

2. Indemnification.

(A) Non-Exclusivity. The rights of the Indemnitee hereunder shall be in addition to
any other rights the Indemnitee may have under the Company’s Certificate of Incorporation or Bylaws
or the Delaware General Corporation law or otherwise. To the extent that a change in the Delaware
General Corporation Law (whether by statute or judicial decision) permits greater indemnification
than would be afforded currently under the Company’s Certificate of Incorporation or Bylaws or this
Agreement, to the fullest extent permitted by law it is the intent of the parties hereto that the
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change
immediately upon the occurrence of such change without further action by the Company or the
Indemnitee.

(B) Basic Indemnification Agreement.

(i) In the event the Indemnitee was, is or becomes a party to or witness or other participant
in, or is threatened to be made a party to or witness or other participant in, a Claim by reason of
(or arising in part out of) an Indemnifiable Event, the Company shall indemnify the Indemnitee to
the fullest extent not prohibited by law, as soon as practicable but in any event no later than
thirty (30) days after written demand is presented to the Company, against any and all Expenses,
judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and
other charges paid or payable in connection with or in respect of such Expenses, judgments, fines,
penalties or amounts paid in settlement) of such Claim. Notwithstanding anything in this Agreement
to the contrary, prior to a Change in Control the Indemnitee shall not be entitled to
indemnification pursuant to this Agreement in connection with any Claim initiated by the Indemnitee
against the Company or any director or officer of the Company unless the Company has joined in or
consented to the initiation of such Claim. If so requested by the Indemnitee, the Company shall
advance to the Indemnitee (within twenty (20) days of such request) any and all Expenses (an
“Expense Advance”).

(ii) Notwithstanding the foregoing, (a) the obligations of the Company under Section 2(B)(i)
shall be subject to the condition that any Reviewing Party shall not have determined (in a written
opinion, in any case in which the Special Independent Counsel referred to in Section 2(C) below is
involved) that the Indemnitee would not be permitted to be indemnified under applicable law, and
(b) the obligation of the Company to make an Expense Advance pursuant to Section 2(B)(i) shall be
subject to the condition that if, when and to the extent that any Reviewing Party determines that
the Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall
be entitled to be reimbursed by the Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid; provided, however, that if the Indemnitee has commenced legal
proceedings in a court of competent jurisdiction to secure a determination that the Indemnitee
should be indemnified under applicable law, any determination made by a Reviewing Party that the
Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and
the Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of appeal therefrom
have been exhausted or lapsed). If there has not been a Change in Control, a Reviewing Party shall
be selected by the Board of Directors, and if there has been such a Change in Control, a Reviewing
Party shall be the Special Independent Counsel referred to in Section 2(C) below. If there has
been no appointment or no determination by a Reviewing Party or if a Reviewing Party determines
that the Indemnitee substantively would not be permitted to be indemnified in whole or in part
under applicable law, the Indemnitee shall have the right to commence litigation in any court in
the Commonwealth of Virginia having subject matter jurisdiction thereof and in which venue is
proper seeking an initial determination by the court or challenging any such determination by the
court or challenging any such determination by the Reviewing Party or any aspect thereof, including
the legal or factual basis therefor, and the Company hereby consents to service of process and to
appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be
conclusive and binding on the Company and the Indemnitee.

(C) Change in Control. The Company agrees that if there is a Change in Control, then
with respect to all matters thereafter arising concerning the rights of the Indemnitee to indemnity
payments and Expense Advances under this Agreement, the Company’s Certificate of Incorporation or
Bylaws, or any other agreement now or hereafter in effect relating to Claims for Indemnifiable
Events, the Company shall seek legal advice only from “Special Independent Counsel” selected by the
Indemnitee and approved by the Company (which approval shall not be unreasonably withheld), and who
has not otherwise performed services for the Company or the Indemnitee within the last five (5)
years (other than in connection with such matters). Such Special Independent Counsel, among other
things, shall render its written opinion to the Company and the Indemnitee as to whether and to
what extent the Indemnitee would be permitted to be indemnified under applicable law. The Company
agrees to pay the reasonable fees of the Special Independent Counsel referred to above and may
fully indemnify such Special Independent Counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.

(D) Establishment of Trust. In the event of a Potential Change in Control or a Change
in Control, the Company shall, upon written request by the Indemnitee, create a “Trust” for the
benefit of the Indemnitee and from time to time upon written request of the Indemnitee shall fund
such Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated at the
time of each such request to be incurred in connection with investigating, preparing for and
defending any Claim relating to an Indemnifiable Event, and any and all judgments, fines, penalties
and settlement amounts of any and all Claims relating to an Indemnifiable Event from time to time
actually paid or claimed, reasonably anticipated or proposed to be paid. The amount or amounts to
be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by a
Reviewing Party in any case in which the Special Independent Counsel referred to above is involved.
The terms of the Trust shall provide that upon a Change in Control (i) the Trust shall not be
revoked or the principal thereof invaded without the written consent of the Indemnitee, (ii) the
Trustee shall advance, within two (2) business days of a request by the Indemnitee, any and all
Expenses to the Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the
circumstances under which the Indemnitee would be required to reimburse the Company under Section
2(B)(ii) above), (iii) the Trust shall continue to be funded by the Company in accordance with the
funding obligation set forth above, (iv) the Trustee shall promptly pay to the Indemnitee all
amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise, and (v) all unexpended funds in the Trust shall revert to the Company upon a final
determination by the Reviewing Party or a court of competent jurisdiction, as the case may be, that
the Indemnitee has been fully indemnified under the terms of this Agreement. The Trustee shall be
a bank or trust company or other individual or entity chosen by the Indemnitee and acceptable to
and approved of by the Company. Nothing in this Section 2(D) shall relieve the Company of any of
its obligations under this Agreement.

(E) Indemnification for Additional Expenses. To the fullest extent not prohibited by
law, the Company shall indemnify the Indemnitee against any and all Expenses and, if requested by
the Indemnitee, shall (within two (2) business days of such request) advance to the Indemnitee such
Expenses as are incurred by the Indemnitee in connection with any Claim asserted against or action
brought by the Indemnitee for (i) indemnification or an advance payment of Expenses by the Company
under this Agreement, the Company’s Bylaws or Certificate of Incorporation or any other agreement
now or hereafter in effect relating to Claims for Indemnifiable Events, and/or (ii) recovery under
any directors’ and officers’ liability insurance policies maintained by the Company, regardless of
whether the Indemnitee ultimately is determined to be entitled to such indemnification, advance
payment of Expenses or insurance recovery, as the case may be.

(F) Partial Indemnity. If the Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion, but not all, of any Expenses,
judgments, fines, penalties or amounts paid in settlement of a Claim, the Company shall
nevertheless indemnify the Indemnitee for that portion thereof to which the Indemnitee is entitled.
Moreover, notwithstanding any other provision of this Agreement, to the extent that the Indemnitee
is or has been successful on the merits or otherwise in defense of any and all Claims relating in
whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including
dismissal without prejudice, the Indemnitee shall be indemnified against all Expenses incurred in
connection therewith. In

6

connection with any determination by the Reviewing Party or otherwise as to whether the Indemnitee
is entitled to be indemnified hereunder, the burden of proof shall be on the Company to establish
that the Indemnitee is not so entitled.

(G) No Presumption. For purposes of this Agreement, to the fullest extent permitted
by law, the termination of any Claim, action, suit or proceeding, by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its
equivalent, shall not create a presumption that the Indemnitee did not meet any particular standard
of conduct or have any particular belief or that a court has determined that indemnification is not
permitted by applicable law.

(H) Liability Insurance. To the extent the Company shall maintain an insurance policy
or policies providing directors’ and officers’ liability insurance, the Indemnitee shall be covered
by such policy or policies, in accordance with its or their terms, to the maximum extent of the
coverage available for any director or officer of the Company.

(I) Period of Limitations. No legal action shall be brought and no cause of action
shall be asserted by or in the right of the Company or any affiliate of the Company against the
Indemnitee, the Indemnitee’s spouse, heirs, executors or personal or legal representatives after
the expiration of two (2) years from the date of accrual of such cause of action, and any claim or
cause of action of the Company or its affiliates shall be extinguished and deemed released unless
asserted by the timely filing of a legal action within such two (2) year period.

(J) Subrogation. In the event of payment by the Company under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights of recovery of the
Indemnitee, who shall execute all papers required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company
effectively to bring suit to enforce such rights.

(K) No Duplication of Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any Claim made against the Indemnitee to the extent the
Indemnitee has otherwise received payment (under any insurance policy, the Bylaws of the Company or
otherwise) in respect of such Claim.

3. Consent and Waiver by Third Parties. The Indemnitee hereby represents and warrants
that he has obtained all waivers and/or consents from third parties which are necessary for his
employment with the Company on the terms and conditions set forth herein and to execute and perform
this Agreement without being in conflict with any other agreement, obligation or understanding with
any such third party. The Indemnitee represents that he is not bound by any agreement or any other
existing or pervious business relationship which conflicts with, or may conflict with, the
performance of his obligations hereunder or prevent the full performance of his duties and
obligations hereunder.

4. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the Commonwealth of Virginia, except for the rights, privileges and
obligations with respect to the indemnity provisions set forth in Section 2 which shall be governed
by and construed in accordance with the internal laws of the State of Delaware.

5. Severability. In case any one or more of the provisions contained in this
Agreement for any reason shall be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision of this Agreement,
but this Agreement shall be construed and reformed to the maximum extent permitted by law.

6. Waivers and Modifications. This Agreement may be modified, and the rights, remedies
and obligations contained in any provision hereof may be waived, only in accordance with this
Section 6. No waiver by either party of any breach by the other or any provision hereof shall be
deemed to be a waiver of any later or other breach thereof or as a waiver of any other provision of
this Agreement. This Agreement sets forth all of the terms of the understanding between the
parties hereto with reference to the subject matter set forth herein and may not be waived,
changed, discharged or terminated orally or by any course of dealing between the parties, but only
by an instrument in writing signed by the party against whom any waiver, change, discharge or
termination is sought. No modification or waiver by the Company shall be effective without the
consent of at least two-thirds (2/3) of the members of the Board of Directors then in office at the
time of such modification or waiver.

7. Assignment. The Indemnitee acknowledges that the services to be rendered by him
hereunder are unique and personal in nature. Accordingly, the Indemnitee may not assign any of his
rights or delegate any of his duties or obligations under this Agreement. The rights and
obligations of the Company under this Agreement shall inure to the benefit of, and shall be binding
upon, the successors and assigns of the Company.

8. Entire Agreement. This Agreement constitutes the entire understanding of the
parties relating to the subject matter hereof and supersedes and cancels all agreements, written or
oral, made prior to the date hereof between the Indemnitee and the Company relating to the subject
matter hereof or thereof.

9. Notices. All notices hereunder shall be in writing and shall be delivered in
person or mailed by certified or registered mail, return receipt requested, addressed as set forth
on the signature page hereto.

10. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the
same instrument.

11. Section Headings. The descriptive section headings herein have been inserted for
convenience only and shall not be deemed to define, limit, or otherwise affect the construction of
any provision hereof.

12. Arbitration. The parties shall submit any dispute relating to this Agreement to
arbitration by notifying the other party hereto, in writing, of such dispute. Within ten (10) days
after receipt of such notice, the parties shall designate in writing one arbitrator to resolve the
dispute; provided, that if the parties cannot agree on an arbitrator within such 10-day period, the
arbitrator shall be selected by the American Arbitration Association. The arbitrator so designated
shall not be an employee, consultant, officer, director or stockholder of any party hereto or any
affiliate of any party to this Agreement. The arbitration shall be governed by the rules of the
American Arbitration Association; provided, that the arbitrator shall have sole discretion with
regard to the admissibility of evidence. The arbitrator shall rule on each disputed issue. All
rulings of the arbitrator shall be in writing and shall be delivered to the parties hereto. Any
arbitration pursuant to this Section 12 shall be conducted in Virginia Beach, Virginia. Any
arbitration award may be entered in and enforced by any court having jurisdiction thereover and the
parties hereby consent and commit themselves to the jurisdiction of the courts of the Commonwealth
of Virginia for purposes of the enforcement of any arbitration award. The arbitrator may proceed
to an award notwithstanding the failure of the other party to participate in the proceedings. The
prevailing party shall be entitled to an award of reasonable attorneys’ fees incurred in connection
with the arbitration in such amount as may be determined by the arbitrators. The award of the
arbitrator shall be the sole and exclusive remedy of the parties and shall be enforceable in any
court of competent jurisdiction. Notwithstanding the foregoing, the parties shall be entitled to
seek injunctive relief or other equitable remedies from any court of competent jurisdiction.

IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement as of the
date first above written as an instrument under seal.

AMERIGROUP CORPORATION

By: [SEAL]

Stanley F. Baldwin

Executive Vice President,

General Counsel and Secretary

INDEMNITEE:

[SEAL]

JEFFREY L. McWATERS

Address for Notices:

AMERIGROUP Corporation

4425 Corporation Lane, Suite 300

Virginia Beach, VA 23462

Attention: Stanley F. Baldwin

Executive Vice President, General Counsel

and Secretary

7EX-10.1

LOAN AGREEMENT

between

NNN HEALTHCARE/OFFICE REIT MARKET EXCHANGE, LLC,

a Delaware limited liability company

and

WACHOVIA FINANCIAL SERVICES, INC.

dated as of

September 27, 2007

1

LOAN AGREEMENT

This Loan Agreement is made as of September 27, 2007 by and between WACHOVIA FINANCIAL
SERVICES, INC., a North Carolina corporation, 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 HEALTHCARE/OFFICE REIT MARKET EXCHANGE, LLC, a Delaware
limited liability company, whose address is c/o Triple Net Properties, LLC, 1551 N. Tustin Avenue,
Suite 300, Santa Ana, California 92705 (“Borrower”).

RECITALS

A. Borrower has acquired or will acquire fee simple title to that certain real property
located in Columbus, Ohio, as more particularly described in Exhibit A attached hereto
(collectively, the “Property”), commonly known as 4 Market Exchange/515 E. Main Street & 1 Market
Exchange/500 East Main Street, Columbus, Ohio.

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:

"Adverse Survey Matters” shall have the meaning assigned in Section 10.18 of this Agreement.

"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 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” shall mean NNN Healthcare/Office REIT Market Exchange, LLC, a Delaware limited
liability company, 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, Ohio 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.

"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.

"Consent to Encumbrance” shall mean that certain Consent to Encumbrance of Leasehold Estate,
to be executed by Borrower and Ground Lessor.

"County” shall mean Franklin County, Ohio.

"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 percent (7.0%) 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 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.

"First Extended Maturity Date” shall mean an extended maturity date determined in accordance
with Section 2.4 of this Agreement.

"First Extension” shall have the meaning assigned in Section 2.4 of this Agreement.

"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.

"Ground Lease” shall mean that certain Parking Space Lease Agreement (JDS Parking Area)
between Ground Lessor, as lessor, and Borrower, as lessee, dated as of August 15, 2007.

"Ground Lessor” shall mean 4MX Partners, LLC, an Ohio limited liability company.

"Guarantor” shall mean NNN Healthcare/Office REIT, Inc., a Maryland corporation.

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

"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.

"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 Financial Services, Inc., a North Carolina corporation, 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.

"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 Fourteen Million Five Hundred Thousand and No/100 Dollars
($14,500,000.00).

"Loan Documents” shall mean this Agreement, the Note, the Mortgage, Financing Statements, the
Guaranty, the Environmental Indemnity, the Subordination of Property Management Agreement, the
Consent to Encumbrance 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.

"Maturity Date” shall mean the date upon which the Loan becomes due and payable, which date
shall be September 30, 2010, subject to possible extensions as set forth in Section 2.4.

"Mortgage” shall mean an Open-End Mortgage, 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.

"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.

"Second Extended Maturity Date” shall mean an extended maturity date determined in accordance
with Section 2.4 of this Agreement.

"Second Extension” shall have the meaning assigned in Section 2.4 of this Agreement.

"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 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.

"Title Company” shall mean First American 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.

"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. All amounts advanced
under the Loan and repaid shall not be re-borrowed.

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. Borrower shall have the option to extend the term of the Loan (the
"First Extension”) from the Maturity Date (for purposes of this Section, the “Original Maturity
Date”) to a date that is twelve (12) months following the Original Maturity Date (for purposes of
this Section, the “First Extended Maturity Date”), and upon the expiration of the First Extension,
Borrower shall have the option to extend the term of the Loan (the “Second Extension”) from the
First Extended Maturity Date to a date that is twelve (12) months following the First Extended
Maturity Date (for purposes of this Section, the “Second Extended Maturity Date”), each such
Extension being subject to the satisfaction of each of the following conditions precedent:

(a) Borrower shall provide Lender with written notice of Borrower’s request to exercise
its option to extend the maturity date not more than ninety (90) days but not less than
sixty (60) days prior to (i) the Original Maturity Date, in the case of the First Extension,
and (ii) the First Extended Maturity Date, in the case of the Second Extension;

(b) As of the date of Borrower’s delivery of notice of request to exercise its option
to extend, and as of the date of the commencement of the applicable extension, no Event of
Default or Unmatured Event of Default shall have occurred and be continuing, and Borrower
shall so certify in writing;

(c) Borrower shall certify in writing that all representations and warranties set forth
in the Loan Documents remain true and correct;

(d) The Debt Service Coverage Ratio for the Project for the three month period
immediately preceding the then applicable Maturity Date shall have been at least 1.15 to
1.0;

(e) Immediately prior to the commencement of each extension, Borrower shall pay to
Lender an extension fee in the amount of one eighth of one percent (0.125%) of the total
outstanding plus undisbursed Loan proceeds, as determined on the Original Maturity Date, in
the case of the First Extension, and as determined on the First Extended Maturity Date, in
the case of the Second Extension;

(f) Borrower shall deliver to Lender, at Borrower’s sole cost and expense, such title
insurance endorsements reasonably required by Lender; and

(g) Borrower shall have paid all costs and expenses of Lender in connection with such
extension.

Notwithstanding the foregoing, the Second Extension may not come into effect unless the First
Extension shall have been in effect. If each of the foregoing conditions precedent are satisfied,
and the Original Maturity Date is extended as provided above to the First Extended Maturity Date or
the Second Extended Maturity Date, as applicable, as used herein and in the other Loan Documents,
the term “Maturity Date” or “Extended Maturity Date” shall thereafter mean the First Extended
Maturity Date or the Second Extended Maturity Date, as applicable.

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).

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 Fifty-Eight Thousand and No/100 Dollars ($58,000.00).

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

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 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 Statement, which shall be duly filed with the Delaware Secretary of
State;

(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 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.

4.2 Intentionally Omitted.

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; 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.

4.4 Debt Service Coverage Ratio. At all times during the term of the Loan, the Debt
Service Coverage Ratio shall equal or exceed 1.10:1.00 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 1.15:1.00 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.

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 Medical/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 medical/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.

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 Ohio. 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. Borrower is a limited liability company,
duly organized and validly existing under the laws of the State of Delaware and is duly
qualified to transact business as a limited liability company under the laws of the State of
Ohio. 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. Guarantor is a corporation, duly
organized and validly existing under the laws of the State of Maryland. 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.

(c) Good Standing. Borrower has made all filings and is in good standing in
the States of Delaware and Ohio 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 Borrower. Guarantor
has made all filings and is in good standing in 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. Borrower is not 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. Borrower’s U.S. employer
identification number is as set forth on the signature page hereof.

9.3 Authorization of Loan Documents.

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

(b) No Conflict. The execution, delivery and performance of the Loan Documents
by Borrower will not violate (i) Borrower’s operating agreement or articles of organization;
or (ii) to Borrower’s knowledge, any legal requirement affecting Borrower or any of its
properties; or (iii) any agreement to which 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 Borrower, and are legally valid and binding obligations of Borrower,
enforceable against 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 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 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 Borrower or the Project may be bound, or (d) any mortgage, instrument, agreement or
document by which Borrower, or any of its properties is bound: (i) which involves any Loan
Document, (ii) that might materially and adversely affect the ability of 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. Borrower has no 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
Borrower or any of its assets which could reasonably be expected to result in any material adverse
change in the business, operations, assets (including the Project) or condition (financial or
otherwise) of Borrower or would materially and adversely affect Borrower’s ability to perform its
obligations under the Loan Documents. Borrower is not (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 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 Borrower, or (c) in default with respect to any agreement to which
Borrower is a party or to which it is bound. There is no Legal Action pending or, to the knowledge
of Borrower, threatened against or affecting 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 Borrower that materially and adversely
affects the business, operations, assets or condition (financial or otherwise) of 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 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. 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 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. Borrower is not 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. Upon the purchase of the
Property, Borrower will be the true owner of all rights in and to all existing agreements, permits
and licenses relating to the Project, 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 medical/commercial office buildings, comply fully with all applicable laws and
restrictive covenants, including, without limitation, all zoning laws.

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 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 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. 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 Guarantor, enforceable against 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.

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 a
medical/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. Borrower shall and shall cause 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, 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 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 upon a U.S.
tax accounting basis, 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 Guarantor for each
taxable year (with all K-1s and other forms and supporting schedules attached), on or before
October 30 of each year;

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

(d) Intentionally Omitted.

(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. 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 Borrower or
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 Borrower’s or 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 Borrower’s or 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
Guarantor is a party to by or to which Borrower or 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.

10.13 Good Standing. Borrower shall maintain its good standing in Delaware and Ohio
and preserve its existence and all rights and franchises material to its business and 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. Borrower shall not (a) be or become subject at any time
to any law, regulation, or list of any government agency (including, without limitation, the U.S.
Office of Foreign Asset Control list) that prohibits or limits Lender from making any advance or
extension of credit to Borrower or from otherwise conducting business with Borrower, or (b) fail to
provide documentary and other evidence of Borrower’s identity as and when requested by Lender at
any time to enable Lender to verify 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:

(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 Borrower’s business and paid
in the ordinary course of 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. Borrower shall not create, incur or suffer to
exist any lien or encumbrance in, of or on any of the property of 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. Borrower shall not 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, 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. Borrower will not 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 Borrower except in the ordinary course of business and pursuant to the
reasonable requirements of 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. Borrower shall not allow any
amendments to be made in the terms of Borrower’s or Guarantor’s organizational documents
which would adversely effect in any material respect Borrower, Guarantor, the Project,
Borrower’s or 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. Borrower will not commingle its funds and other assets
with those of any Affiliate, Guarantor, any of Borrower’s members, managers, partners or
shareholders or any other Person.

(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 for shares of stock in NNN Healthcare/Office REIT, Inc. which may be transferred
without violating the provisions of this clause (i).

(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 Post-Closing Deliveries.

(a) Borrower shall, within fifteen (15) Business Days after the Closing Date, deliver
to Lender a fully-executed and acknowledged subordination, nondisturbance and attornment
agreement, in form and content satisfactory to Lender, for each of the leases with Capital
Primary Care, Midwest Retina/300, Grant Riverside Lab, Children’s Hospital and Design Group.

(b) Borrower shall, within fifteen (15) Business Days after the Closing Date, deliver
to Lender fully-executed estoppel certificates, in form and content satisfactory to Lender,
for leases representing at least seventy-five (75%) of the total square footage of the
Improvements (except to the extent a subordination, nondisturbance and attornment agreement
delivered to Lender for such leases contained estoppel language satisfactory to Lender).

(c) Borrower shall, within thirty (30) days after the Closing Date, deliver to Lender
an updated survey for the Project, certified to Lender and its successors and assigns in
accordance with the survey requirements and certification Lender provided to Borrower prior
to the Closing Date. Borrower previously delivered to Lender a survey of the Project
completed prior to the Closing Date and referenced in the Title Insurance Policy (the “Prior
Survey”). If the updated survey identifies any encroachments or other matters not disclosed
in the Prior Survey and such encroachments or other matters constitute violations of law or
otherwise adversely affect in any material way (as reasonably determined by Lender) the
value or ability to finance or market for sale the Project (“Adverse Survey Matters”),
Borrower shall promptly (and in any event within (90) days) take such corrective measures as
Lender reasonably requires (including, if required by Lender, obtaining endorsements to the
Title Insurance Policy) to eliminate, insure over or otherwise correct the Adverse Survey
Matters.

(d) Borrower shall use commercially reasonably efforts to, within fifteen (15) Business
Days after the Closing Date, deliver to Lender (i) the fully-executed and acknowledged
Consent to Encumbrance, in form and content reasonably satisfactory to Lender and (ii) a
certification from Ground Lessor as to the accuracy and completeness of the copy of the
Ground Lease previously delivered to Lender.

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 or 10.17(b), (c), (d)
and (j).

(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 Borrower’s or 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 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 Borrower or Guarantor or the property of Borrower or Guarantor or any
part thereof, or in the absence of such application, consent, or acquiescence a trustee,
receiver, or other custodian is appointed for Borrower or Guarantor or the property of
Borrower or 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 Borrower or
Guarantor.

(i) If a receiver, trustee or similar officer shall be appointed for Borrower or
Guarantor or for all or any substantial part of the property of Borrower or 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 Borrower or 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 Borrower or the property of 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
Guarantor which if decided against Guarantor would materially adversely affect the Project
or 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 Borrower
or 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 Borrower.

(m) All or any part of the property of Borrower, or all or any part of the property of
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.

(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 Borrower or 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) Borrower, 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 Borrower’s or Guarantor’s ability to repay the Loan
or which will materially affect Borrower’s or 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) (i) Borrower fails in the payment of any rent or other charge mentioned in or made
payable by the Ground Lease as and when such rent or other charge is payable; or
(ii) (A) there shall occur any default by Borrower, as tenant under the Ground Lease, in the
observance or performance of any material term, covenant or condition of the Ground Lease on
the part of Borrower, to be observed or performed, or (B) if any one or more of the events
referred to in the Ground Lease shall occur which would cause the Ground Lease to terminate
without notice or action by the Ground Lessor or which would entitle the Ground Lessor to
terminate the Ground Lease and the term thereof by giving notice to Borrower, as tenant
thereunder, or (C) if the leasehold estate created by the Ground Lease shall be surrendered
or the Ground Lease shall be terminated or cancelled for any reason or under any
circumstances whatsoever, or (D) if any of the material terms, covenants or conditions of
the Ground Lease shall in any manner be modified, changed, supplemented, altered, or amended
without consent of Lender; provided, however, the occurrence of any of the events described
in clauses (B) or (C) shall not be an Event of Default if, after giving effect to the loss
of parking resulting from the termination of the Ground Lease, the Project still has
adequate parking (as determined by Lender in its reasonable discretion) to satisfy zoning
requirements and the operation of the Project for its current use.

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 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
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.

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. The addresses for notices are
as follows:

	 	 	 	 	 
	If to Lender:
	 	Wachovia Financial Services, Inc.
	 
	 	Real Estate Financial Services
	 
	 	General Banking Group
	 
	 	Mail Code: CA 6233
	 
	 	15750 Alton Parkway
	 
	 	Irvine, California  92618
	 
	 	Attn:  Anne McNeil
	If to Borrower:
	 	NNN Healthcare/Office REIT Market
	 
	 	Exchange, LLC
	 
	 	c/o Triple Net Properties, LLC
	 
	 	1551 N. Tustin Avenue, Suite 300
	 
	 	Santa Ana, California  92705
	 
	 	Attn:  Shannon Johnson
	With a copy to:
	 	Cox, Castle & Nicholson LLP
	 
	 	2049 Century Park East, 28th Floor
	 
	 	Santa Monica, California 90067
	 
	 	Attention: Kevin Kinigstein, Esq.

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.

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 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 OHIO, 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 JURISDICTION OF THE COURTS OF THE STATE OF OHIO SITTING IN FRANKLIN COUNTY,
THE COURTS OF THE STATE OF CALIFORNIA SITTING IN ORANGE COUNTY, THE UNITED STATES DISTRICT
COURT OF THE SOUTHERN DISTRICT OF OHIO 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 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 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 signature below, 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.

ARTICLE XIII

TELECOMMUNICATIONS PARCEL

13.1 Release of Telecommunications Parcel. There currently exists a
telecommunications tower and related facility on that portion of the Project depicted on
Exhibit D attached hereto consisting of approximately 544 square feet (the
"Telecommunications Parcel”). At the written request of Borrower, Lender shall release the
Telecommunications Parcel from the lien of the Mortgage, upon the satisfaction of all of the
following conditions precedent:

(a) No Event of Default shall have occurred and be continuing and no event shall have
occurred and be continuing that with the giving of notice and/or the lapse of time would
constitute an Event of Default;

(b) Each of the Telecommunications Parcel and the remainder of the Property consists of
one or more separate legal parcels, and release of the Telecommunications Parcel does not
violate any applicable law regarding subdivisions, parcel maps, and the division of land
into lots or parcels;

(c) Release of the Telecommunications Parcel does not violate any requirements of any
document of record covering the Telecommunications Parcel or the Project;

(d) Lender shall have determined that following the release of the Telecommunications
Parcel, the access to the remainder of the Project shall be adequate for the current use of
the remainder of the Project;

(e) Lender shall have determined that the release of the Telecommunications Parcel will
not adversely impact in any material respect the Project in regards to setbacks, parking,
zoning or functional utilities;

(f) Borrower shall provide Lender at Borrower’s sole cost and expense with such title
insurance endorsements to the Title Insurance Policy as Lender shall reasonably request, in
form and substance reasonably satisfactory to Lender, including without limitation a CLTA
111 endorsement, which shall insure that after the release of the Telecommunications Parcel,
the Mortgage shall continue as a valid first position deed of trust against the Remainder
Parcel, subject only to Permitted Exceptions;

(g) Borrower shall have paid, or cause to be paid, to Lender all costs and expenses
incurred in connection with the release of the Telecommunications Parcel, including without
limitation all recording fees, transfer and other taxes, trustee’s fees, attorneys’ fees,
appraisal fees, escrow fees and fees for title insurance and similar charges; and

(h) Ownership of the Telecommunications Parcel shall be concurrently transferred to
Schmidt Development Company, Ltd. or an Affiliate thereof.

ARTICLE XIV

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

Exhibit D – Telecommunications Parcel Depiction

[Signatures Appear on Following Page.]

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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 FINANCIAL SERVICES, INC., a North Carolina corporation

By: /s/ Anne McNeil

Name: Anne McNeil

Title: Vice President

	"Borrower”

NNN HEALTHCARE/OFFICE REIT MARKET EXCHANGE, LLC,

a Delaware limited liability company

By: /s/ Shannon K S Johnson

Name: Shannon K S Johnson

Title: Authorized Signatory

	Employer Identification No. 26-0903716

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