Exhibit 10.5
ALLEN & GLEDHILL

Dated ( 27 June 2019)
THE SELLER PARTIES LISTED IN EXHIBIT A ATTACHED HERETO
and
THE BUYER PARTIES LISTED IN EXHIBIT A ATTACHED HERETO
and
KBS US PRIME PROPERTY MANAGEMENT PTE. LTD.
(as manager of Prime US REIT)
and
DBS TRUSTEE LIMITED
(as trustee of Prime US REIT)
and
KBS REIT PROPERTIES III LLC
and
PRIME US REIT S1 PTE. LTD.
and
PRIME US-SUB REIT, INC.
and
PRIME US-UPPER TIER, LLC
and
PRIME US-MIDDLE TIER, LLC
and
PRIME US PROPERTIES, LLC
and
PRIME US-LOWER TIER, LLC
and
PRIME US-ACQUISITION I, LLC

SET-OFF AGREEMENT

Allen & Gledhill LLP
One Marina Boulevard #28-00 Singapore 018989
Tel: +65 6890 7188 | Fax +65 6327 3800

allenandgledhill.com

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TABLE OF CONTENTS
Contents
Page
 
1.
Definitions and Interpretation
2
 
2.
Settlement
4
 
3.
General
6
 

 
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This Agreement is made on 27 June 2019 between:
(1)
THE SELLER PARTIES, each a Delaware limited liability company or Delaware
statutory trust and as identified in Exhibit A attached hereto (collectively,
“Vendor”);

(2)
THE BUYER PARTIES, each a Delaware limited liability company and as identified
in Exhibit A attached hereto (each a “Property Holding LLC” and collectively,
“Purchaser”);

(3)
KBS US PRIME PROPERTY MANAGEMENT PTE. LTD., a company established and validly
existing under the laws of Singapore and having its registered office at 1
Raffles Place, #40-01 One Raffles Place, Singapore 048616, in its capacity as
manager of Prime US REIT (the “Manager”);

(4)
DBS TRUSTEE LIMITED, a company established and validly existing under the laws
of Singapore and having its registered office at 12 Marina Boulevard, Marina Bay
Financial Centre Tower 3, Singapore 018982, in its capacity as trustee of Prime
US REIT (the “Trustee”);

(5)
KBS REIT PROPERTIES III LLC, a Delaware limited liability company and having its
principal office at 800 Newport Center Drive, Suite 700, Newport Beach,
California 92660 (the “Investor”);

(6)
PRIME US REIT S1 PTE. LTD., a company established and validly existing under the
laws of Singapore and having its registered office at 50 Raffles Place, #32-01
Singapore Land Tower, Singapore 048623 (“SSUB1”);

(7)
PRIME US-SUB REIT, INC., a Delaware corporation and having its principal office
at 800 Newport Center Drive, Suite 700, Newport Beach, California 92660 (“Parent
US REIT”);

(8)
PRIME US-UPPER TIER, LLC, a Delaware limited liability company and having its
principal office at 800 Newport Center Drive, Suite 700, Newport Beach,
California 92660 (“Upper-Tier U.S. LLC”).

(9)
PRIME US-MIDDLE TIER, LLC, a Delaware limited liability company and having its
principal office at 800 Newport Center Drive, Suite 700, Newport Beach,
California 92660 (“Middle-Tier U.S. LLC”);

(10)
PRIME US PROPERTIES, LLC, a Delaware limited liability company and having its
principal office at 800 Newport Center Drive, Suite 700, Newport Beach,
California 92660;

(11)
PRIME US-LOWER TIER, LLC, a Delaware limited liability company and having its
principal office at 800 Newport Center Drive, Suite 700, Newport Beach,
California 92660 (“Lower-Tier U.S. LLC”); and

(12)
PRIME US-ACQUISITION I, LLC, a Delaware limited liability company and having its
principal office at 800 Newport Center Drive, Suite 700, Newport Beach,
California 92660;

Whereas:
(A)
The Trustee and SSUB1 have entered into a subscription agreement (“RPS
Subscription Agreement”) under which SSUB1 proposes to allot and issue to the
Trustee, and the Trustee agrees to subscribe for redeemable preference shares in
the capital of SSUB1, subject to the terms and conditions of the RPS
Subscription Agreement.

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(B)
The board of directors of the Parent US REIT has authorised the allotment and
issuance of 1,000,000 shares of its common stock to SSUB 1 (representing a 100%
interest in the Parent US REIT).

(C)
The board of directors of the Parent US REIT has authorised the formation and
capitalisation of Upper-Tier U.S. LLC with the Parent US REIT as the sole member
of Upper-Tier U.S. LLC.

(D)
The board of directors of the Parent US REIT has authorised the formation and
capitalisation of Middle-Tier U.S. LLC with Upper-Tier U.S. LLC as the sole
member of Middle-Tier U.S. LLC.

(E)
The board of directors of the Parent US REIT has authorised the formation and
capitalisation of Lower-Tier U.S. LLC with Middle-Tier U.S. LLC as the sole
member of Lower-Tier U.S. LLC.

(F)
The board of directors of the Parent US REIT has authorised the formation and
capitalisation of Prime US Properties LLC with Middle-Tier U.S. LLC as the sole
member of Prime US Properties LLC.

(G)
The board of directors of the Parent US REIT has authorised the formation and
capitalisation of Prime US-Acquisition I, LLC with Prime US Properties LLC as
the sole member of Prime US-Acquisition I, LLC.

(H)
The board of directors of the Parent US REIT has authorised the formation and
capitalisation of each Property Holding LLC with Lower-Tier U.S. LLC or Prime
US-Acquisition I, LLC as the sole member and manager, as the case may be.

(I)
The applicable Vendor has agreed to sell to the applicable Purchaser, and the
applicable Purchaser has agreed to purchase from the applicable Vendor, 11
properties, as identified in Exhibit A attached hereto, and have in connection
thereto, entered into the Portfolio Purchase and Sale Agreement and Escrow
Instructions by and between the Vendor and Purchaser (the “Sale and Purchase
Agreement”).

(J)
The Manager is proposing to offer for subscription units in Prime US REIT (“New
Units”) to the Investor, and has in connection thereto, entered into a
subscription agreement with the Investor (the “Subscription Agreement”).

(K)
The parties acknowledge that at no time will the Investor and its affiliates own
more than 16% of the units of Prime US REIT, and in addition, that the New Units
will not be issued prior to the issuance of other units of Prime US REIT to the
cornerstone investors.

(L)
The parties to this agreement (“Parties”) are desirous to enter into this
Agreement for the settlement of certain of their payment rights and obligations
under the Transactions (as defined herein).

It is agreed as follows:
1.
Definitions and Interpretation

1.1
In this Agreement, except to the extent that the context requires otherwise:

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“this Agreement” means this set-off agreement made between the Parties on the
date hereof as time to time amended, modified or supplemented and any document
which is supplemental hereto;
“Business Day” means any day (other than a Saturday, Sunday or gazetted public
holiday) on which commercial banks are generally open for business in Singapore
and the SGX-ST is open for trading;
“Investor” means KBS REIT Properties III LLC;
“Lower-Tier U.S. LLC” means Prime US-Lower Tier, LLC;
“Manager” means KBS US Prime Property Management Pte. Ltd., as manager of Prime
US REIT;
“Middle-Tier U.S. LLC” means Prime US-Middle Tier, LLC;
“New Units” means the Subscription Units (as defined in the Subscription
Agreement) in Prime US REIT for which the Investor is subscribing for under the
Subscription Agreement;
“Notice” has the meaning given to it in Clause 3.2;
“Parent US REIT” means Prime US-Sub REIT, Inc.;
“Parties” means the parties to this Agreement;
“Prime US REIT” means Prime US REIT, a collective investment scheme authorised
by the Monetary Authority of Singapore and constituted pursuant to a deed of
trust dated 7 September 2018, as amended, varied or supplemented from time to
time;
“Purchaser” or “Property Holding LLCs” means the buyer parties identified in
Exhibit A attached hereto;
“Relevant Amount” has the meaning given to it in Clause 2;
“RPS Subscription Agreement” has the meaning given to it in Recital (A);
“Sale and Purchase Agreement” has the meaning given to it in Recital (I);
“Set-Off” has the meaning given to it in Clause 2;
“SGX-ST” means Singapore Exchange Securities Trading Limited;
“SSUB1” means Prime US REIT S1 Pte. Ltd.;
“Subscription Agreement” has the meaning given to it in Recital (J);
“Transactions” means the various transactions described in Recitals (A) to (J);
“Trustee” means DBS Trustee Limited (in its capacity as trustee of Prime US
REIT);
“Upper-Tier U.S. LLC” means Prime US-Upper Tier, LLC; and
“Vendor” means the seller parties identified in Exhibit A attached hereto.
1.2
Headings, Clauses etc.

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The headings of this Agreement are inserted for reference only and shall be
ignored in construing this Agreement. Unless the context otherwise requires,
words (including words defined in this Agreement) denoting the singular shall
include the plural and vice versa. The words “written” and “in writing” include
any means of visible reproduction. References to this Agreement include any
recitals and references to “Clauses” are to clauses of this Agreement. Any
reference to a sub-clause is a reference to a sub-clause of the clause in which
such reference appears. References to dates and times are to Singapore dates and
times.
2.
Settlement

In consideration of the mutual promises and obligations contained herein, the
receipt and adequacy of which is hereby acknowledged, each of the Parties agree
to the following.
2.1
The Investor has requested for a set-off of the payment of the Subscription
Amount (as defined in the Subscription Agreement) (the “Relevant Amount”) which
is due from the Investor pursuant to the Subscription Agreement for the
subscription of the New Units against a portion (equivalent to the Relevant
Amount) of the purchase consideration payable by the Purchaser to the Vendor
under the Sale and Purchase Agreement, and the Parties agree to the aforesaid
set-off subject to the terms of this Agreement.

2.2
Upon receipt by the Vendor of the purchase price (as stated in the Sale and
Purchase Agreement) less the Relevant Amount:

2.2.1
the Vendor shall discharge the Purchaser from and have no further claim against,
the Purchaser in respect of the amount set-off as set out in Clause 2.1 above
under the Sale and Purchase Agreement; and

2.2.2
the Manager shall discharge the Investor from, and have no further claim
against, the Investor in respect of the payment of the subscription amounts due
from the Investor for the subscription of the New Units under the Subscription
Agreement.

2.3
In connection with the set-off as agreed in Clauses 2.1 and 2.2 above (the
“Set-Off”), the Trustee, SSUB1, Parent US REIT, Upper-Tier U.S. LLC, Middle-Tier
U.S. LLC, Prime US Properties, LLC, Lower-Tier U.S. LLC, Prime US-Acquisition I,
LLC and the Purchaser agree that for purposes of the set-off, the Relevant
Amount shall not be transferred in cash to each of SSUB1, Parent US REIT,
Upper-Tier U.S. LLC, Middle-Tier U.S. LLC, Prime US Properties, LLC, Lower-Tier
U.S. LLC, Prime US-Acquisition I, LLC and Property Holding LLC, but instead, the
Relevant Amount shall be deemed to have been received by each of SSUB1, Parent
US REIT, Upper-Tier U.S. LLC, Middle-Tier U.S. LLC, Prime US Properties, LLC,
Lower-Tier U.S. LLC, Prime US-Acquisition I, LLC and each of the Property
Holding LLC in the following manner:

2.3.1
SSUB1 agrees that following the Set-Off, notwithstanding that the actual
subscription amount received by SSUB1 in cash from the Trustee under the RPS
Subscription Agreement is minus the Relevant Amount, the full amount due from
the Trustee under the RPS Subscription Agreement (i.e. inclusive of the Relevant
Amount which has been Set-Off) shall be deemed to have been received by SSUB1
and shall be recorded as such by SSUB1.

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2.3.2
Parent US REIT agrees that following the Set-Off, notwithstanding that the
actual capital contribution amount received by Parent US REIT in cash from SSUB1
is minus the Relevant Amount, the full amount due from SSUB1 (i.e. inclusive of
the Relevant Amount which has been Set-Off) shall be deemed to have been
received by Parent US REIT and shall be recorded as such by Parent US REIT.

2.3.3
Upper-Tier U.S. LLC agrees that following the Set-Off, notwithstanding that the
actual capital contribution amount received by Upper-Tier U.S. LLC in cash from
Parent US REIT is minus the Relevant Amount, the full amount due from Parent US
REIT (i.e. inclusive of the Relevant Amount which has been Set-Off) shall be
deemed to have been received by Upper-Tier U.S. LLC and shall be recorded as
such by Upper-Tier U.S. LLC.

2.3.4
Middle-Tier U.S. LLC agrees that following the Set-Off, notwithstanding that the
actual capital contribution amount received by Middle-Tier U.S. LLC in cash from
Upper-Tier U.S. LLC is minus the Relevant Amount, the full amount due from
Upper-Tier U.S. LLC (i.e. inclusive of the Relevant Amount which has been
Set-Off) shall be deemed to have been received by Middle-Tier U.S. LLC and shall
be recorded as such by Middle-Tier U.S. LLC.

2.3.5
Each of Prime US Properties, LLC and Lower-Tier U.S. LLC agrees that following
the Set-Off, notwithstanding that the actual capital contribution amount
received by Prime US Properties, LLC and/or Lower-Tier U.S. LLC in cash from
Middle-Tier U.S. LLC is minus the portion of the Relevant Amount receivable by
Prime US Properties, LLC and Lower-Tier U.S. LLC, respectively, the full amount
due from Middle-Tier U.S. LLC (i.e. inclusive of the portion of the Relevant
Amount receivable by Prime US Properties, LLC and Lower-Tier U.S. LLC which has
been Set-Off) shall be deemed to have been received by Prime US Properties, LLC
and/or Lower-Tier U.S. LLC and shall be recorded as such by Prime US Properties,
LLC and/or Lower-Tier U.S. LLC .

2.3.6
Prime US-Acquisition I, LLC agrees that following the Set-Off, notwithstanding
that the actual capital contribution amount received by Prime US-Acquisition I,
LLC in cash from Prime US Properties, LLC is minus the portion of the Relevant
Amount receivable by Prime US-Acquisition I, LLC, the full amount due from Prime
US Properties, LLC (i.e. inclusive of the portion of the Relevant Amount
receivable by Prime US-Acquisition I, LLC which has been Set-Off) shall be
deemed to have been received by Prime US-Acquisition I, LLC and shall be
recorded as such by Prime US-Acquisition I, LLC .

2.3.7
Each Property Holding LLC agrees that following the Set-Off, notwithstanding
that the actual capital contribution amount received by the Property Holding LLC
in cash from the Lower-Tier U.S. LLC or Prime US-Acquisition I, LLC, as the case
may be, is minus the portion of the Relevant Amount receivable by that Property
Holding LLC, the full amount due from the Lower-Tier U.S. LLC or Prime
US-Acquisition I, LLC, as the case may be, (i.e. inclusive of the portion of the
Relevant Amount receivable by that Property Holding LLC which has been Set-Off)
shall be deemed to have been received by that Property Holding LLC and shall be
recorded as such by that Property Holding LLC.

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3.
General

3.1
Assignability

This Agreement will be binding on and ensure to the benefit of the Parties and
their respective successors and assigns except that no Party may, without the
prior written consent of the other Parties, assign any of their rights or
obligations under this Agreement.
3.2
Notices

Any notice or other communication in connection with this Agreement will be in
writing in English (a “Notice”) and will be sufficiently given or served if
delivered or sent to the following addresses or electronic mail addresses of the
Parties or to such other address or fax number as the relevant Party may have
notified to the other Parties in accordance with this Clause 3.2:
Purchaser
:
c/o KBS US Prime Property Management Pte. Ltd.
 
 
1 Raffles Place,
#40-01 One Raffles Place,
Singapore 048616
Attention
:
Chief Executive Officer / Chief Financial Officer
Telephone Number
:
+1 (949) 417-6517 / +65 9826 3537
Email Address
:
bcambon@primeusreit.com / stalukdar@primeusreit.com
With a copy to:
 
 
Address:
 
c/o KBS Realty Advisors, LLC, 800 Newport Center Drive, Suite 700, Newport
Beach, CA 92660
Attention:
 
Charles J. Schreiber, Jr., and Jeffrey Waldvogel
Vendor
:
c/o KBS Capital Advisors LLC
 
 
800 Newport Center Drive
Suite 700, Newport Beach
CA 92660
Attention
:
Jeffrey Waldvogel / Rodney Richerson
Telephone Number
:
+1 (949) 797-0327 / +1 (949) 417-6515
Email Address
:
jwaldvogel@kbs.com / rricherson@kbs.com
Manager
:
KBS US Prime Property Management Pte. Ltd.
 
 
1 Raffles Place,

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#40-01 One Raffles Place,
Singapore 048616
Attention
:
Chief Executive Officer / Chief Financial Officer
Telephone Number
:
+1 (949) 417-6517 / +65 9826 3537
With a copy to:
 
 
Address:
 
c/o KBS Realty Advisors, LLC, 800 Newport Center Drive, Suite 700, Newport
Beach, CA 92660
Attention:
 
Charles J. Schreiber, Jr., Jeffrey Waldvogel, and Mark Krotine
Email Address
:
bcambon@primeusreit.com / stalukdar@primeusreit.com
Investor
 
KBS REIT Properties III LLC
 
 
800 Newport Center Drive
Suite 700, Newport Beach
California 92660
Attention
:
Jeffrey Waldvogel / Rodney Richerson
Telephone Number
:
+1 (949) 797-0327 / +1 (949) 417-6515
Email Address
:
jwaldvogel@kbs.com / rricherson@kbs.com
SSUB1
:
c/o KBS US Prime Property Management Pte. Ltd.
 
 
1 Raffles Place,
#40-01 One Raffles Place,
Singapore 048616
Attention
:
Chief Executive Officer / Chief Financial Officer
Telephone Number
:
+1 (949) 417-6517 / +65 9826 3537
Email Address
:
bcambon@primeusreit.com / stalukdar@primeusreit.com
Parent US REIT
:
c/o KBS US Prime Property Management Pte. Ltd.
 
 
1 Raffles Place,
#40-01 One Raffles Place,
Singapore 048616

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Attention
:
Chief Executive Officer / Chief Financial Officer
Telephone Number
:
+1 (949) 417-6517 / +65 9826 3537
Email Address
:
bcambon@primeusreit.com / stalukdar@primeusreit.com
Upper-Tier Sub-US REIT
:
c/o KBS US Prime Property Management Pte. Ltd.
 
 
1 Raffles Place,
#40-01 One Raffles Place,
Singapore 048616
Attention
:
Chief Executive Officer / Chief Financial Officer
Telephone Number
:
+1 (949) 417-6517 / +65 9826 3537
Email Address
:
bcambon@primeusreit.com / stalukdar@primeusreit.com

Any Notice may be delivered by hand or, sent by electronic mail or prepaid post
(airmail in the case of international service). Without prejudice to the
foregoing, any Notice will conclusively be deemed to have been received on the
next Business Day in the place to which it is sent, if sent by electronic mail,
or 72 hours from the time of posting, if sent by post, or at the time of
delivery, if delivered by hand.
3.3
Variation

No variation of this Agreement will be effective unless in writing and signed by
or on behalf of all Parties.
3.4
Rights and Remedies

No remedy conferred to a Party is intended to be exclusive of any other remedy
which is otherwise available at law, in equity, by statute or otherwise, and
each and every other remedy will be cumulative and will be in addition to every
other remedy given under this Agreement or now or hereafter existing at law, in
equity, by statute or otherwise. The election of any one or more of such
remedies by a Party will not constitute a waiver by such Party of the right to
pursue any other available remedies.
3.5
Contracts (Rights of Third Parties) Act

A person who is not a party to this Agreement has no right under the Contracts
(Rights of Third Parties) Act, Chapter 53B of Singapore to enforce any term of
this Agreement.
3.6
Severability

If any term in this Agreement will be held to be illegal, invalid or
unenforceable, in whole or in part, under any applicable law, such term or part
will to that extent be deemed not to form part of this Agreement but the
legality, validity or enforceability of the remainder of this Agreement will not
be affected.

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3.7
Entire Agreement

This Agreement constitutes the entire agreement between the Parties in respect
of the set-off arrangement to the exclusion of all prior representations,
understandings and agreements between the Parties. Any variation of the terms of
this Agreement must be in writing and signed by the Parties.
3.8
Governing Law and Jurisdiction

This Agreement will be governed by, and construed in accordance with, the laws
of Singapore, and each Party irrevocably submits to the non-exclusive
jurisdiction of the courts of Singapore.
3.9
Counterparts

This Agreement may be executed in any number of counterparts, each of which,
when executed and delivered (whether in original or electronic mail copy), will
be an original, but all the counterparts together will constitute one and the
same document.
3.10
Further Assurance

Each Party undertakes with the other Parties that it will execute such documents
and do such acts and things as the other Parties may reasonably require for the
purpose of giving to such other Parties the full benefit of the terms of this
Agreement.
3.11
Costs and Expenses

Save as otherwise expressly provided in this Agreement, each Party will bear its
own legal, professional and other costs and expenses incurred by it in
connection with the negotiation, preparation or completion of this Agreement.
3.12
Limitation of Liability

Notwithstanding any contrary provision in this Agreement, the Parties agree and
acknowledge that DBS Trustee Limited (“DBST”) is entering into this Agreement
only in its capacity as trustee of Prime US REIT and not in its personal
capacity and all references to the Trustee in this Agreement shall be construed
accordingly.
As such, notwithstanding any contrary provision in this Agreement, DBST has
assumed all obligations under this Agreement in its capacity as trustee of Prime
US REIT and not in its personal capacity and any liability of or indemnity,
covenant, undertaking, representation and/or warranty given or to be given by
the Trustee under this Agreement is given by DBST in its capacity as trustee of
Prime US REIT and not in its personal capacity and any power and right conferred
on any receiver, attorney, agent and/or delegate shall be limited to the assets
of Prime US REIT over which DBST in its capacity as trustee of Prime US REIT has
recourse and shall not extend to any personal or other assets of DBST or any
assets held by DBST as trustee for any trust (other than Prime US REIT). Any
obligation, matter, act, action or thing required to be done, performed or
undertaken or any covenant, representation, warranty or undertaking given by the
Trustee under this Agreement shall only be in connection with the matters
relating to Prime US REIT and shall not extend to DBST’s obligations in respect
of any other trust or real estate investment trust of which DBST is trustee.
Notwithstanding any contrary provision in this Agreement, it is hereby agreed
and acknowledged that the Trustee’s obligations under this Agreement will be

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solely the corporate obligations of the Trustee and there shall be no recourse
against the shareholders, directors, officers or employees of the Trustee for
any claims, losses, damages, liabilities or other obligations whatsoever in
connection with any of the transactions contemplated by this Agreement. For the
avoidance of doubt, any legal action or proceedings commenced against the
Trustee whether in Singapore or elsewhere pursuant to this Agreement shall be
brought against DBST in its capacity as trustee of Prime US REIT and not in its
personal capacity. This Clause 3.12 shall survive the termination or rescission
of this Agreement. This Clause 3.12 shall apply, mutatis mutandis, to any
notice, certificate or other document which the Trustee issues under or pursuant
to this Agreement, as if expressly set out in such notice, certificate or
document.

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EXHIBIT A
List of Seller Parties and Buyer Parties
 
SELLER PARTY (“VENDOR”)
BUYER PARTY (“PURCHASER”)
1.    
Village Center Station II Owner, LLC, a Delaware limited liability company
Prime US-Village Center Station II, LLC, a Delaware limited liability company
2.    
KBSIII Tower at Lake Carolyn, LLC, a Delaware limited liability company
Prime US-Tower At Lake Carolyn, LLC, a Delaware limited liability company
3.    
KBSIII One Washingtonian, LLC, a Delaware limited liability company
Prime US-One Washingtonian, LLC, a Delaware limited liability company
4.    
KBSIII 222 Main, LLC, a Delaware limited liability company
Prime US-222 Main, LLC, a Delaware limited liability company
5.    
KBSIII 171 17th Street, LLC, a Delaware limited liability company
Prime US-171 17th Street, LLC, a Delaware limited liability company
6.    
KBSIII Reston Square, LLC, a Delaware limited liability company
Prime US-Reston Square, LLC, a Delaware limited liability company
7.    
KBSIII 101 South Hanley, LLC, a Delaware limited liability company
Prime US-101 South Hanley, LLC, a Delaware limited liability company
8.    
KBSIII Village Center Station, LLC, a Delaware limited liability company
Prime US-Village Center Station, LLC, a Delaware limited liability company
9.    
Promenade One
KBSIII Promenade One, LLC, a Delaware limited liability company

Promenade Two
KBSIII Promenade Two, LLC, a Delaware limited liability company
Prime US-Promenade, LLC, a Delaware limited liability company

10.    
KBSIII CrossPoint At Valley Forge Trust, a Delaware Statutory Trust
Prime US-CrossPoint At Valley Forge, LLC, a Delaware limited liability company
11.    
KBSIII Towers At Emeryville, LLC, a Delaware limited liability company
Prime US-Tower At Emeryville, LLC, a Delaware limited liability company

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In witness whereof this Agreement has been entered into on the date stated at
the beginning.
"VENDOR":
VILLAGE CENTER STATION II OWNER, LLC,
a Delaware limited liability company
By:
KBSIII VILLAGE CENTER STATION II MEMBER, LLC,

a Delaware limited liability company,
its sole member and manager
By:
KBSIII REIT ACQUISITION XXXII, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

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KBSIII TOWER AT LAKE CAROLYN, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION VI, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

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KBSIII ONE WASHINGTONIAN, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION X, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

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KBSIII 222 MAIN, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION XIII, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII 171 17TH STREET, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION XV, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII RESTON SQUARE, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION XVIII, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII 101 SOUTH HANLEY, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION XX, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII VILLAGE CENTER STATION, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION XXIII, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII PROMENDADE ONE, LLC,
a Delaware limited liability company
By:
KBSIII PROMENADE ONE MEZZ, LLC,

a Delaware limited liability company,
its sole member
By:
KBSIII PROMENADE AT EILAN, LLC,

a Delaware limited liability company,
its manager
By:
KBSIII 3003 WASHINGTON MEMBER, LLC,

a Delaware limited liability company,
its manager
By:
KBSIII REIT ACQUISITION XVII, LLC,

a Delaware limited liability company,
its managing member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII PROMENADE TWO, LLC,
a Delaware limited liability company
By:
KBSIII PROMENADE TWO MEZZ, LLC,

a Delaware limited liability company,
its sole member
By:
KBSIII PROMENADE AT EILAN, LLC,

a Delaware limited liability company,
its manager
By:
KBSIII 3003 WASHINGTON MEMBER, LLC,

a Delaware limited liability company,
its manager
By:
KBSIII REIT ACQUISITION XVII, LLC,

a Delaware limited liability company,
its managing member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III,

INC.,
a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII CROSSPOINT AT VALLEY FORGE TRUST,
a Delaware Statutory Trust
By:
KBSIII CROSSPOINT AT VALLEY FORGE, LLC,

a Delaware limited liability company,
as Administrative Trustee
By:
KBSIII REIT ACQUISITION XXVI, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

KBSIII TOWERS AT EMERYVILLE, LLC,
a Delaware limited liability company
By:
KBSIII REIT ACQUISITION XXI, LLC,

a Delaware limited liability company,
its sole member
By:
KBS REIT PROPERTIES III, LLC,

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

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

"PURCHASER":
PRIME US-VILLAGE CENTER STATION II, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-TOWER AT LAKE CAROLYN, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-ONE WASHINGTONIAN, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-222 MAIN, LLC,
a Delaware limited liability company
By:
PRIME US-ACQUISITION I, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US PROPERTIES, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-171 17TH STREET, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-RESTON SQUARE, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-101 SOUTH HANLEY, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-VILLAGE CENTER STATION, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-PROMENADE, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-CROSSPOINT AT VALLEY FORGE, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

PRIME US-TOWER AT EMERYVILLE, LLC,
a Delaware limited liability company
By:
PRIME US-LOWER TIER, LLC

a Delaware limited liability company,
its sole member and manager
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

The Manager
 
 
 
 
 
SIGNED by Sandip Talukdar
 
 
/s/ Sandip Talukdar
for and on behalf of
 
 
 
KBS US PRIME PROPERTY MANAGEMENT PTE. LTD.
 
(as manager of Prime US REIT)
 

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

The Trustee
 
 
 
 
 
 
 
 
SIGNED by
 
 
 
/s/ Kwek Yi Lin
/s/ Authorized Signatory
for and on behalf of
Kwek Yi Lin
Authorized Signatory
 
 
 
DBS TRUSTEE LIMITED
 
 
(as trustee of Prime US REIT)
 
 
 
 
 
in the presence of:
 
 
/s/ Lee Zhi Kang
 
 
Witness' signature
 
 
Name: Lee Zhi Kang
 
 
Address: 12 Marina Boulevard, Marina Bay
Financial Centre Tower 3, Singapore 018982
 
 
 
 
 
 
 
 

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

The Investor
KBS REIT PROPERTIES III, LLC,
a Delaware limited liability company
By:
KBS LIMITED PARTNERSHIP III,

a Delaware limited partnership,
its sole member
By:
KBS REAL ESTATE INVESTMENT TRUST III, INC.,

a Maryland corporation,
its general partner
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
Chief Executive Officer

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

SSUB1
 
 
 
We hereby confirm our agreement to the foregoing.

 
 
 
SIGNED by Sandip Talukdar
 
 
/s/ Sandip Talukdar
for and on behalf of
 
 
 
PRIME US REIT S1 PTE. LTD.
 

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

Parent US REIT
PRIME US-SUB REIT, INC.,
a Delaware corporation
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

Upper-Tier U.S. LLC
PRIME US-UPPER TIER, LLC,
a Delaware limited liability company
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

Middle-Tier U.S. LLC
PRIME US-MIDDLE TIER, LLC,
a Delaware limited liability company
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

Prime US Properties, LLC
PRIME US PROPERTIES, LLC,
a Delaware limited liability company
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

Lower-Tier U.S. LLC
PRIME US-LOWER TIER, LLC,
a Delaware limited liability company
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement
 

--------------------------------------------------------------------------------

Prime US-Acquisition I, LLC
PRIME US-ACQUISITION I, LLC,
a Delaware limited liability company
By:
PRIME US PROPERTIES, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-MIDDLE TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-UPPER TIER, LLC,

a Delaware limited liability company,
its sole member
By:
PRIME US-SUB REIT, INC.,

a Delaware corporation,
its sole member
By:
/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr.,
President

__________________________________________________________________________________________________________________________________
Endeavour – Set-Off Agreement