Exhibit 10.3

ACKNOWLEDGEMENT AND CONSENT AGREEMENT
ACKNOWLEDGEMENT AND CONSENT AGREEMENT (this "Agreement"), made as of this 1st
day of September, 2011 (the "Effective Date"), is by and among GKK STARS
ACQUISITION LLC, a Delaware limited liability company ("GKK Stars"), GOLDMAN
SACHS MORTGAGE COMPANY, a New York limited partnership ("Goldman"), CITICORP
NORTH AMERICA, INC., a New York corporation ("CINAI"), KBS ACQUISITION SUB, LLC,
a Delaware limited liability company, as successor-in-interest to SLG Stars
Mortgage Loan LLC, a Delaware limited liability company ("SLG Mortgage") as
successor-in-interest to SL GREEN REALTY CORP., a Maryland corporation,
("KBSAS"; and, together with Goldman and Citi, individually and collectively,
"Mortgage Lender"), KBS Debt Holdings Mezz Holder, LLC, a Delaware limited
liability company ("KBSDH"), KBS GKK Participation Holdings I, LLC, a Delaware
limited liability company ("KBSPHI"), and KBS GKK Participation Holdings II,
LLC, a Delaware limited liability company ("KBSPHII"; and, together with KBSDH
and KBSPHI, collectively, "KBS" or "Senior Mezzanine Lender"); and KBSAS, as
successor-in-interest to SLG Stars Mezz Loan, a Delaware limited liability
company ("SLG Mezz"), Goldman and Citi (in their capacities as lenders under the
Junior Mezzanine Loan Agreement (as hereinafter defined), individually and
collectively, "Junior Mezzanine Lender"; and, collectively with the Mortgage
Lender and Senior Mezzanine Lender, the "Lender"), KBS ACQUISITION HOLDINGS,
LLC, a Delaware limited liability company, ("Newco") and CITIGROUP FINANCIAL
PRODUCTS INC. (“Citi Financial”, together with CINAI, “Citi”) Capitalized terms
not defined herein shall have the meanings set forth in the Settlement Agreement
(as defined below). For purposes of this Agreement, the terms “Citi” and
“Goldman” shall be deemed to include Citi and Goldman in their capacities as
Mortgage Lender, Junior Mezzanine Lender and lender under KBS Master Repurchase
Agreement.
W I T N E S S E T H
WHEREAS, KBS, KBSAS, Newco and GKK Stars are parties to that certain Collateral
Transfer and Settlement Agreement dated as of the date hereof (the “Settlement
Agreement”);
WHEREAS, KBS, KBSAS, Newco and GKK Stars have requested Citi and Goldman’s
consent to the execution of the Settlement Agreement;
NOW, THEREFORE, in consideration of the covenants and mutual promises contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agree as
follows:
1. Consent. Citi and Goldman hereby acknowledge and agree that Citi and Goldman
(i) have received and reviewed a complete copy of the Settlement Agreement, and
(ii) consent to the execution of the Settlement Agreement by KBS, KBSAS, Newco
and GKK Stars. Citi and Goldman hereby acknowledge and agree that upon execution
of this Agreement, they shall become a party to the Agreement with regards to
Sections 4.1, 4.2, 11.7 and 11.12 and Articles IX and X thereof (the "Joinder
Sections"), and shall be fully bound by, and subject to, all of the covenants,
terms and conditions of the Joinder Sections as though an original party to the
Agreement.

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2. Representations and Warranties. (a) (i) Citi and Goldman acknowledge and
confirm the accuracy of the representations and warranties set forth in Section
7.1 of the Settlement Agreement, that such representations and warranties shall
survive in accordance with Section 7.2 of the Settlement Agreement and that KBS,
KBSAS, Newco and GKK Stars are relying on such representations and warranties in
executing the Settlement Agreement. (ii) KBS acknowledges and confirms the
accuracy of the representations and warranties set forth in Section 7.1 of the
Settlement Agreement, that such representations and warranties shall survive in
accordance with Section 7.2 of the Settlement Agreement and that Citi, Goldman,
KBSAS, Newco and GKK Stars are relying on such representations and warranties in
executing the Settlement Agreement. (iii) GKK Stars acknowledges and confirms
the accuracy of the representations and warranties set forth in Section 8.1 of
the Settlement Agreement, that such representations and warranties shall survive
in accordance with Section 8.2 of the Settlement Agreement and that Citi,
Goldman, and KBS are relying on such representations and warranties in executing
the Settlement Agreement; and
(b) Further to the foregoing, each of Citi and Goldman hereby, each with respect
to itself only, represents and warrants to KBS, KBSAS, Newco and GKK Stars that:
(i) it is duly and legally authorized to enter into this Agreement and to
consummate the transactions contemplated hereby; (ii) the person executing this
Agreement on behalf of Citi and Goldman and any other document or instrument
executed and delivered by either Citi or Goldman in connection with this
Agreement and/or the Settlement Agreement has the full power and authority to
execute and deliver all such documents and instruments and to cause each of Citi
and Goldman to perform any act which may be necessary pursuant to the terms of
this Agreement or such other documents or instruments; (iii) this Agreement and
any documents or instruments executed by Citi and Goldman in connection herewith
constitute the legal, valid and binding obligations of the Citi and Goldman,
enforceable against Citi and Goldman in accordance with their terms, subject to
bankruptcy, creditors’ rights, and equitable principles; and (iv) each is a
sophisticated party, acting without duress and upon the advice of its own
independent counsel (which has advised such parties that its undertakings with
respect to the transactions are fully enforceable).
3. Releases and Guarantys. Contemporaneously with the execution of this
Agreement (i) Citi and Goldman shall deliver the releases to GKK Stars as set
forth in Section 4.2 of the Settlement Agreement, which releases shall not be
effective until the Release Effective Date and (ii) GKK Stars shall deliver the
releases to KBS, Citi and Goldman as set forth in Section 4.2 of the Settlement
Agreement, which releases shall not be effective until the Release Effective
Date and (iii) GKK Stars shall deliver (a) to KBS, KBSAS, Citi and Goldman the
fully executed Gramercy Back-up Guaranty and (b) to KBS, KBSAS, Newco, Citi and
Goldman the fully executed Amended and Restated Carveout Guaranty.
4. Third Party Beneficiary. Citi and Goldman shall be deemed as intended third
party beneficiaries of the Settlement Agreement with the authority to enforce
the terms of the Settlement Agreement, provided, however, that in the absence of
the delivery of the notice to GKK Stars pursuant to Section 11.12 of the
Settlement Agreement, GKK Stars or its affiliates shall not be required to take
any action requested by Citi or Goldman with respect to the Senior Mezzanine
Loan or Junior Mezzanine Loan that is inconsistent with the directions provided
to GKK Stars by KBS or KBSAS.

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5. No Amendments or Modifications. So long as any amounts remain outstanding
under the Master Repurchase Agreement and such amounts are not indefeasibly
paid, the Settlement Agreement may not be amended or modified except by an
agreement in writing executed by GKK Stars, KBS, Newco, Citi and Goldman.
6. Further Actions by KBS. KBS hereby agrees that, so long as any amounts remain
outstanding under Master Repurchase Agreement and such amounts are not
indefeasibly paid, KBS will not take any of the following actions without the
express written consent of Citi and Goldman: (i) amend or modify the Deed in
Lieu Agreement with respect to the Dana portfolio, (ii) amend or modify the
“Partial Satisfaction Amounts” set forth in Schedule G to the Settlement
Agreement or the “Aggregate Satisfaction Amount” set forth in Schedule G to the
Settlement Agreement, (iii) give GKK Stars the option to assign the Equity
Interests in the PB Capital Loan Entity to an entity which is not collectively
100% owned, directly or indirectly, by KBSAS, or (iv) execute the FSI LA
Amendment. KBS or KBSAS shall not assign, transfer or convey, directly or
indirectly, the Senior Mezzanine Loan, any interest therein or any interest in
the Participation Agreements (as defined in the KBS Master Repurchase Agreement)
without the consent of Citi and Goldman. KBS, KBSAS, GKK Stars and Newco agree
that any action taken by KBS, KBSAS, GKK Stars or Newco in violation of this
Agreement shall be deemed null and void.
7. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the each of the undersigned and each of the undersigned’s successors,
assigns and legal representatives.
8. Interpretation. The headings preceding the text of this Agreement are for
convenience only and shall not be deemed part of this Agreement or be given any
effect in interpreting this Agreement.
9. Counterparts. This Agreement may be executed in any number of counterparts
(whether original, facsimile or portable document format), each of which when
executed and delivered shall be deemed to be an original and all such
counterparts together shall constitute one and the same instrument.
10. Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable, that provision
shall be deemed severed from this Agreement and the validity, legality of
enforceability of the remaining provisions or obligations shall remain in full
force as though invalid, illegal or unenforceable provision had never been a
part of this Agreement.
11. Notices. The address and fax number for notices to KBS, KBSAS and Newco
under this Agreement shall be the address and fax number set forth in the
Section 11.10 of the Settlement Agreement. The address and fax numbers for
notices to Citi and Goldman under this Agreement shall be:
Goldman Sachs Mortgage Company
200 West Street    
New York, New York 10282
Attention: Anthony Preisano

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and
Citicorp North America, Inc.
388 Greenwich Street
New York, New York 10013
Attention: Michael Schadt
with copy to
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153
Attention: Samuel M. Zylberberg, Esq. (EG)
12. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without regard to
choice of law rules and without the reference to any rule, custom or canon
requiring construction against the draftsman.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and sealed as of the day and year first above written.

GKK STARS:
GKK STARS ACQUISITION LLC,
a Delaware limited liability company
By:
/s/ Roger Cozzi                        

Name:    Roger Cozzi                
Title: Chief Executive Officer    

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MORTGAGE LENDER:
GOLDMAN SACHS MORTGAGE COMPANY,
a New York limited partnership
By:
Goldman Sachs Real Estate Funding

Corp., its general partner
By:
/s/ Mark J. Buono

Name: Mark J. Buono    
Title: Authorized Signatory        

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CITICORP NORTH AMERICA, INC.,
a New York corporation
By:
/s/ James Fraser

Name: James Fraser
Title: Vice President

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KBS ACQUISITION SUB, LLC,
a Delaware limited liability company
By:
KBS ACQUISITION HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS GKK PARTICIPATION HOLDINGS I, LLC,

a Delaware limited liability company,
its sole member
By:
KBS DEBT HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its manager
By:
KBS REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation,
its sole general partner
By:
/s/ David E. Snyder    

David E. Snyder
Chief Financial Officer

    
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SENIOR MEZZANINE LENDER:
KBS DEBT HOLDINGS MEZZ HOLDER, LLC,
a Delaware limited liability company
By:
KBS DEBT HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its manager
By:
KBS REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation,
its sole general partner
By:
/s/ David E. Snyder    

David E. Snyder
Chief Financial Officer    

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KBS GKK PARTICIPATION HOLDINGS I, LLC,
a Delaware limited liability company
By:
KBS DEBT HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its manager
By:
KBS REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation,
its sole general partner
By:
/s/ David E. Snyder    

David E. Snyder
Chief Financial Officer    

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KBS GKK PARTICIPATION HOLDINGS II, LLC,
a Delaware limited liability company
By:
KBS DEBT HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its manager
By:
KBS REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation,
its sole general partner
By:
/s/ David E. Snyder    

David E. Snyder
Chief Financial Officer    

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REPO LENDERS:
GOLDMAN SACHS MORTGAGE COMPANY,
a New York limited partnership
By:
Goldman Sachs Real Estate Funding Corp.,

its general partner
By:
/s/ Mark J. Buono

Name: Mark J. Buono
Title: Authorized Signatory

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CITIGROUP FINANCIAL PRODUCTS INC.,
a New York corporation
By:
/s/ Richard B. Schlenger

Name:    Richard B. Schlenger
Title: Authorized Signatory

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JUNIOR MEZZANINE LENDER:
GOLDMAN SACHS MORTGAGE COMPANY,
a New York limited partnership
By:
Goldman Sachs Real Estate Funding Corp.,

its general partner
By:
/s/ Mark J. Buono

Name: Mark J. Buono
Title: Authorized Signatory

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CITICORP NORTH AMERICA, INC.,
a New York corporation
By:
/s/ James Fraser                        

Name: James Fraser                
Title: Vice President    

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KBS ACQUISITION SUB, LLC,
a Delaware limited liability company
By:
KBS ACQUISITION HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS GKK PARTICIPATION HOLDINGS I, LLC,

a Delaware limited liability company,
its sole member
By:
KBS DEBT HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its manager
By:
KBS REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation,
its sole general partner
By:
/s/ David E. Snyder    

David E. Snyder
Chief Financial Officer

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NEWCO:
KBS ACQUISITION HOLDINGS, LLC,
a Delaware limited liability company
By:
KBS GKK PARTICIPATION HOLDINGS I, LLC,

a Delaware limited liability company,
its sole member
By:
KBS DEBT HOLDINGS, LLC,

a Delaware limited liability company,
its sole member
By:
KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its manager
By:
KBS REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation,
its sole general partner
By:
/s/ David E. Snyder    

David E. Snyder
Chief Financial Officer    

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