Document:

Ex. 10.10 ASDA

Exhibit 10.10
Advances, Security and Deposit Agreement
This Advances, Security and Deposit Agreement (“Agreement”), dated as of _______________, 20___ is entered
                                                                                                                              (Date of Agreement)

 between _________________________________________________ having its principal place of business at 
                            (Full Corporate Name of Customer)

 ____________________________________________________ (“Customer”) and the Federal Home Loan Bank of 
             (Full Address of Customer's Executive Offices)

Seattle, 1501 Fourth Avenue, Suite 1800, Seattle, WA 98101 (“Seattle Bank”).
RECITALS
Whereas, Customer is a Member of Seattle Bank and desires from time to time to apply for extensions of credit, deposit accounts and other services from Seattle Bank in accordance with the terms and conditions of this Agreement; and
Whereas, Seattle Bank requires that all existing and future indebtedness of Customer to Seattle Bank be secured pursuant to this Agreement.
AGREEMENT
NOW THEREFORE, Customer and Seattle Bank agree as follows:
Article I. Definitions
Section 1.1 Definitions   As used in this Agreement, the following terms will have the following meanings:
		
	1.1.1
	“Account” or “Accounts” means Customer's deposit account(s) with Seattle Bank, including demand and time deposit accounts.

		
	1.1.2
	“Act” means the Federal Home Loan Bank Act, as amended from time to time.

		
	1.1.3
	“Advance” or “Advances” means any loans heretofore, now or hereafter made to Customer by Seattle Bank.

		
	1.1.4
	“Advance Master Application” means a writing executed by Customer and accepted by Seattle Bank, in form and content satisfactory to Seattle Bank, under which Customer may make Requests from time to time to receive Advances, subject to the terms of this Agreement, the Seattle Bank's Credit Policy, the Act and the Regulations. 

		
	1.1.5
	“Advances Note” means any promissory note executed by Customer and accepted by Seattle Bank, in form and content satisfactory to Seattle Bank, relating to Advances or Other Credit Accommodations.

		
	1.1.6
	“Advance Confirmation Advice” means a writing or an electronic transmission issued at any time by Seattle Bank, in form and content satisfactory to Seattle Bank, confirming particular terms of an Advance made at the Request of Customer.

		
	1.1.7
	“Borrowing Capacity” means the maximum amount of Advances, Commitments and Other Credit Accommodations which Borrower may have outstanding at any time. Borrowing Capacity is limited by the Act and Regulations, the Stock Ownership Requirement and Collateral Maintenance Requirement of the Credit Policy, and by Customer's creditworthiness and the quality of Customer's Eligible Collateral, as determined by Seattle Bank from time to time.

		
	1.1.8
	“Capital Plan” means the Capital Plan of the Federal Home Loan Bank of Seattle, adopted March 5, 2002, as amended November 22, 2002 and as hereafter amended.

		
	1.1.9
	“Capital Stock” means all of Customer's capital stock in Seattle Bank, as currently owned or hereafter acquired.

		
	1.1.10
	“Collateral” means all property, including the proceeds thereof, heretofore, now or hereafter assigned, transferred or pledged to Seattle Bank by Customer as security for Indebtedness.  The term “Collateral” may, in appropriate circumstances, include property that is pledged under agreements separate from this Agreement, including without limitation real property of Customer, whether used in Customer's business or obtained through foreclosure or deeds in lieu of foreclosure of Mortgage Collateral.

		
	1.1.11
	“Collateral Coverage Factor” means the percentage of value, as determined by Seattle Bank from time to time, of various types of Eligible Collateral which will support the aggregate amount of all outstanding Advances, Commitments or Other Credit Accommodations made to Customer against such Eligible Collateral.

		
	1.1.12
	“Collateral Manual” means the Collateral Manual of the Seattle Bank, as published and revised by the Seattle Bank from time to time.

		
	1.1.13
	“Collateral Maintenance Requirement” means the minimum level of aggregate Eligible Collateral, discounted by applicable Collateral Coverage Factors, which Customer must pledge to Seattle Bank, and maintain at or above such minimum level, to secure Customer's outstanding Advances, Commitments, or Other Credit Accommodations, as determined by Seattle Bank from time to time.

		
	1.1.14
	“Commitment” means any written agreement under which Seattle Bank is contractually obligated to make Advances to Customer, or payments on behalf of or for the account of Customer, at a future date, irrespective of whether Seattle Bank's obligation under such agreement is contingent upon the occurrence or non-occurrence of a condition subsequent. Commitments include, without limitation, Letters of Credit, firm commitments, guarantees or other financial arrangements made by Seattle Bank in writing to facilitate transactions between Customer and third parties. This Agreement is neither a Commitment nor an undertaking or obligation to provide any Commitment.

		
	1.1.15
	“Credit Policy” means the credit and collateral policies of Seattle Bank, including without limitation the credit and collateral policies set forth in the Users Guide and the Collateral Manual, as published and revised by the Seattle Bank from time to time. In addition to the Users Guide and Collateral Manual, the Credit Policy includes other policies adopted from time to time by Seattle Bank. The Credit Policy is subject to the Act and Regulations, and in the event of any inconsistency between the Credit Policy and the Act or Regulations, the more restrictive statute, regulation or policy shall be controlling.

		
	1.1.16
	“De-Pledge” means the partial release, re-assignment and/or re-delivery by Seattle Bank or its approved custodian of any part of the Collateral pledged to Seattle Bank for Indebtedness.

		
	1.1.17
	“Eligible Collateral” means Collateral other than Capital Stock which: (i) qualifies as security for Advances or Other Credit Accommodations under the Act and Regulations; (ii) qualifies as security for Advances or Other Credit Accommodations under the Credit Policy, as amended by Seattle Bank from time to time, which may be more restrictive than the Act or Regulations; (iii) is owned by Customer free and clear of any liens, encumbrances or other interests, other than the pledge of such Collateral to Seattle Bank under this Agreement; and (iv) is not a home mortgage on which any director, officer, employee, attorney or agent of Customer or any Federal Home Loan Bank is personally liable, unless acceptance of such mortgage is specifically approved by formal resolution of the Seattle Bank's Board of Directors, and the Finance Agency has endorsed such resolution.

		
	1.1.18
	“Eligible CFI Collateral” means, if Customer is a community financial institution as defined in the Regulations, certain small agri-business loans, small farm loans or small business loans which meet the requirements of Eligible Collateral described in Subsection 1.1.17 above.

		
	1.1.19
	 “Eligible Mortgage Collateral” means Mortgage Collateral which meets the requirements of Eligible Collateral described in Subsection 1.1.17 above.

		
	1.1.20
	 “Eligible Securities Collateral” means “securities” (whether certificated or uncertificated) or other “investment property” (as each such term is defined in the UCC) now owned or hereafter acquired by Customer, which meet the requirements of Eligible Collateral described in Subsection 1.1.17 above.

		
	1.1.21
	“Finance Agency” means the Federal Housing Finance Agency, or any successor agency thereto.

		
	1.1.22
	“Funds” means money maintained in Customer's Account(s) with Seattle Bank.

		
	1.1.23
	“Indebtedness” means all obligations of Customer to Seattle Bank, defined in the broadest and most comprehensive sense, to mean all primary, secondary, direct, indirect, fixed, or contingent, debts, duties, agreements, undertakings, obligations, covenants and conditions now or at any time in the future to be paid or performed by Customer in connection with or relating to Advances, Other Credit Accommodations, Commitments, Accounts or Other Obligations, including, without limitation, all of Customer's obligations to pay principal, interest, fees (including, without limitation, loan fees and prepayment fees), charges (including, without limitation, overdraft charges), costs, reimbursements (including, without limitation, attorneys fees) and losses (including, without limitation, damages for Customer's breach of any contractual obligations to Seattle Bank), which at any time may be owing under or in connection therewith.

		
	1.1.24
	“Letter of Credit” means any standby letter of credit issued by Seattle Bank for the account of Customer.

		
	1.1.25
	“Listed Collateral” is defined in Section 3.4 below.

		
	1.1.26
	“Master Backup Support Agreement” means any agreement now or hereafter made by Seattle Bank and one or more other Federal Home Loan Bank(s) under which such other Federal Home Loan Bank(s) may make Advances or Other Credit Accommodations to Customer in the event of a loss of power, communications or computer failure, property damage or other forms of business interruption adversely affecting Seattle Bank's normal operations.

		
	1.1.27
	“Member” means an owner of Capital Stock in Seattle Bank.

		
	1.1.28
	“Member Advance Stock Purchase Requirement” is described in Section 6.10 of this Agreement and in the Capital Plan.

		
	1.1.29
	“MERS” means Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware, or any successor thereto.

		
	1.1.30
	“MERS Mortgages” means mortgages registered with MERS, in which the Mortgage Documents name MERS as mortgagee, solely as nominee, for the originators of the debt secured by such mortgages and their successors and assigns.

		
	1.1.31
	“Mortgage Collateral” means Mortgage Documents (excluding participation or other fractional interests therein) and all ancillary security agreements, policies and certificates of insurance, guarantees, indemnities, evidences of recordation, applications, underwriting materials, surveys, appraisals, notices, opinions of counsel and loan servicing data and all other electronically stored and written records or materials relating to the loans evidenced or secured by the Mortgage Documents.

		
	1.1.32
	“Mortgage Documents” means mortgages and deeds of trust (in this Agreement, “mortgages”) and all notes, bonds or other instruments evidencing loans secured thereby (in this Agreement, “mortgage notes”) and any endorsements and assignments thereof to Customer.

		
	1.1.33
	“Mortgage Purchase Program” means any program offered by Seattle Bank for the purchase from a Member of mortgage notes and related mortgages.

		
	1.1.34
	“Other Credit Accommodations” means credit products, other than Advances, authorized under the terms and conditions of the Act and the Regulations and offered from time to time by Seattle Bank under its Credit Policy, including, without limitation, Swap Transactions, Letters of Credit and other Commitments.

		
	1.1.35
	“Other Eligible Collateral” means property, other than Eligible Mortgage Collateral or Eligible Securities Collateral, which meets the requirements of Eligible Collateral described in Subsection 1.1.17 above, including, if Customer is a community financial institution as defined in the Regulations, any Eligible CFI Collateral.

		
	1.1.36
	“Other Obligations” means obligations of Customer to Seattle Bank other than those relating to Advances or Other Credit Accommodations, including, without limitation, any repurchase obligations of Customer under a Mortgage Purchase Program, if applicable; overdraft charges, wire charges, Account fees and charges for other miscellaneous services provided to Customer by Seattle Bank; and all other amounts, of any nature whatsoever, now or hereafter owed to Seattle Bank by Customer.

		
	1.1.37
	“Physical Possession or Control Collateral” is defined in Section 3.5 below.

		
	1.1.38
	“Regulations” means the regulations of the Finance Agency, as amended from time to time.

		
	1.1.39
	“Request” or “Requests” means any request(s) made by Customer via telephone, or other means made available by Seattle Bank from time to time, for Advances.

		
	1.1.40
	“Stock Ownership Requirement” means the obligation of Customer to own minimum amounts of Capital Stock in accordance with the Capital Plan.

		
	1.1.41
	“Swap Transaction” means an interest rate swap, cap or collar, currency exchange transaction, or any other similar transaction (including any option to enter into any of the foregoing) or any combination of the foregoing, entered into between the Seattle Bank and Customer pursuant to the terms of the Credit Policy, this Agreement or other related documentation, including without limitation any form of master agreement published by the International Swaps and Derivatives Association, Inc.

		
	1.1.42
	“UCC” means the Uniform Commercial Code, as amended from time to time, of the State of Washington or the jurisdiction of formation of Customer, as applicable under Section 6.13 of this Agreement.

		
	1.1.43
	“Users Guide” means the Financial Products and Services Users Guide of Seattle Bank, as published and revised by Seattle Bank from time to time.

Article II. Advances and Other Credit Accommodations
Section 2.1 Procedures for Advances   The terms and conditions of this Agreement shall govern each Advance heretofore, now, or hereafter made by Seattle Bank to Customer. The Credit Policy of the Seattle Bank is an integral part of the terms and conditions of all such Advances and is incorporated in this Agreement by this reference as if fully set forth herein. Additional terms and conditions of Advances may be set forth in an Advance Master Application and/or Advances Note, which Seattle Bank may require Customer to sign and deliver to Seattle Bank from time to time. Any additional, particular terms and conditions of an Advance orally quoted by Seattle Bank and accepted by Customer at the time of Customer's Request for an Advance, including, without limitation, the principal amount, applicable interest rate or due date of the Advance, will be confirmed by Seattle Bank in an Advance Confirmation Advice or, if no Advance Confirmation Advice is issued, will be evidenced by the books and records of Seattle Bank. In cases in which a Request for an Advance is made orally by Customer of Seattle Bank in an electronically recorded telephone conversation, and a question arises concerning any particulars of such Advance, Customer agrees that such recording or a transcript thereof will be an integral part of Seattle Bank's books and records and may be used as evidence of such particulars. In cases in which an Advance requested orally by Customer is made by another Federal Home Loan Bank, on behalf of Seattle Bank, under a Master Backup Support Agreement, the books and records of such other Federal Home Loan Bank will establish any additional, particular terms of such Advance. If such Advance is requested by Customer of such other Federal Home Loan Bank in an electronically recorded telephone conversation, and a question arises concerning any particulars of such Advance, Customer agrees that such recording or a transcript thereof will be an integral part of the such other Federal Home Loan Bank's books and records and may be used as evidence of such particulars. Unless otherwise agreed by Seattle Bank, each Advance will be made by crediting Customer's demand deposit Account(s) with Seattle Bank. In all cases, funding of any Request for an Advance will be subject to compliance by Customer with the terms and provisions of the Act, the Regulations, the Credit Policy and this Agreement, including, without limitation, the Stock Ownership Requirement and Collateral Maintenance Requirement. In the event that Customer's access to Advances is subsequently restricted pursuant to the Act, the Regulations or any other provision of applicable law, Seattle Bank will not be required to fund any outstanding Commitment for Advances not funded prior to the effective date of such restriction.
Section 2.2 Repayment of Advances   Customer agrees to repay each Advance in accordance with its terms and conditions. Customer will maintain in Customer's demand deposit Account(s) with Seattle Bank an amount at least equal to the amounts then currently due and payable to Seattle Bank with respect to Advances, and Customer hereby

authorizes Seattle Bank to debit Customer's Account(s) with Seattle Bank for all amounts due and payable with respect to any Advance and for all other amounts due and payable under this Agreement. Customer agrees that, in the event any such debit results in Customer's demand deposit Account being overdrawn, Customer will pay overdraft charges thereon at the rate that Seattle Bank normally assesses for overdrafts on general demand deposit accounts. In the event that the balance in such demand deposit Account(s) is, at any time, insufficient to pay such due and payable amounts, Seattle Bank may in its discretion and without notice to Customer:  (i) make a “flexible balance” or other similar Advance, as provided in the Credit Policy, in the amount of and for the purpose of paying such due and payable amounts; or (ii) apply any other deposits, credits, Funds or other monies of Customer then in the possession of Seattle Bank to the payment of such due and payable amounts. All payments with respect to Advances will be applied to any fees, costs or charges applicable thereto, to interest due thereon and to any principal amount thereof that is then due and payable, in such order and priority as Seattle Bank may determine.
Section 2.3 Estoppel   For any Advance evidenced by an Advance Confirmation Advice, failure of Customer, within ten (10) business days of Customer's receipt of the Advance Confirmation Advice, to deliver written notice to Seattle Bank specifying any disputed particulars thereof, including without limitation the principal amount, applicable interest rate or due date of the Advance, will constitute the final agreement and acknowledgment by Customer that the particulars of the Advance Confirmation Advice are accurate and are those that Customer requested and by which Customer agreed to be bound, and Customer will thereafter be estopped from asserting any claim or defense with respect thereto. For any Advance which has such particular terms established by the books and records of Seattle Bank or another Federal Home Loan Bank rather than by an Advance Confirmation Advice, such books and records shall be conclusive in the absence of manifest error. Seattle Bank reserves the right to correct its scrivener's errors, if any, in any Advance Confirmation Advice or such books and records, and no such errors shall affect Customer's obligations in respect to the affected Advance.
Section 2.4 Interest   Customer agrees to pay interest on each Advance at a rate per annum determined on the basis described in the Credit Policy, Advance Master Application, Advances Note, Advance Confirmation Advice or the books and records of Seattle Bank or other Federal Home Loan Bank, as the case may be, pertaining to such Advance.
Section 2.5 Commitment and Cancellation Fees   Customer agrees to pay when due any commitment fees and any cancellation fees applicable to any Commitments issued by Seattle Bank for Advances, determined on the basis described in the Credit Policy, the Commitment documentation or the books and records of Seattle Bank or other Federal Home Loan Bank, as the case may be, pertaining to such Commitment.
Section 2.6 Other Credit Accommodations
		
	2.6.1
	Customer may apply to Seattle Bank for the issuance of other credit products, including without limitation Letters of Credit, firm commitments for Advances and Swap Transactions, provided such other credit products, and Customer's intended use thereof, are authorized under the Act, the Regulations and the Credit Policy. The terms and conditions of such Other Credit Accommodations shall be governed by the Act, the Regulations, the Credit Policy, this Agreement and such other documentation as Seattle Bank may require from time to time.

		
	2.6.2
	The Borrowing Capacity of Customer shall be reduced by Seattle Bank's outstanding obligations under any Letter of Credit, Swap Transaction, Commitment or Other Credit Accommodation, as determined by Seattle Bank from time to time, in the same manner as outstanding Advances.

		
	2.6.3
	In the event any Commitment, including without limitation a Letter of Credit, is outstanding at the time of an Event of Default under Section 4.1 of this Agreement, Seattle Bank may at its option make an Advance by crediting a special Account with Seattle Bank in an amount equal to the outstanding Commitment. Amounts credited to such special Account will be utilized by Seattle Bank for the purpose of satisfying Seattle Bank's obligations under the outstanding Commitment. When all such obligations have expired or have been satisfied, Seattle Bank will disburse the balance, if any, in such special Account first to the satisfaction of any Indebtedness then owing by Customer to Seattle Bank and then to Customer or its successors in interest. Advances made pursuant to this Subsection 2.7.3 will be payable on demand and will bear interest at the rate in effect and being charged by Seattle Bank from time to time on overdrafts on demand deposit accounts of its Customers.

Section 2.7 Prepayment Fees   Customer agrees to pay a prepayment fee upon the prepayment of all or any portion of any Advance or Other Credit Accommodation, made before the due date thereof, whether such prepayment is made voluntarily or involuntarily, including, without limitation, any prepayment resulting from acceleration under Section 4.1 hereof upon an Event of Default. The amount of the prepayment fee shall not be less than zero and shall be determined by the Seattle Bank on the basis described in the Regulations, the Credit Policy and any applicable Advance Master Application, Advances Note, Advance Confirmation Advice or Swap Transaction, as the case may be, pertaining to prepayment of such Advance or Other Credit Accommodation. Any applicable illustrations and examples of prepayment fees in the Users Guide, as published and revised by the Seattle Bank from time to time, are an integral part of the terms and conditions of this Agreement and are incorporated herein by this reference as if fully set forth at length.
Section 2.8 Compliance with the Credit Policy, Act and Regulations   Customer hereby agrees to comply with the terms and provisions of the Credit Policy, the Act and the Regulations, including, without limitation, any reporting requirements, application procedures or eligibility requirements imposed by the Credit Policy, the Act or the Regulations with respect to particular types of Advances, Commitments or Other Credit Accommodations. In the event of any inconsistency between the Credit Policy and the Act or the Regulations, Customer hereby agrees to comply with the more restrictive statute, regulation or policy. In the event any provision of the Credit Policy, the Act or the Regulations is amended, Customer agrees to comply with the terms and provisions of the Credit Policy, the Act and the Regulations as so amended from time to time, provided that, to the extent permitted by the Act and the Regulations, any particular terms of outstanding Advances or Commitments existing at the time of any such amendment, including, without limitation, interest rates or prepayment fees, will continue to be governed by the terms and provisions of the Advance Master Application, Advances Note, Advance Confirmation Advice or Commitment documentation which applied to such outstanding Advances or Commitments at the time such Advances or Commitments were made. Notwithstanding the foregoing, Seattle Bank shall retain the right to amend from time to time the Borrowing Capacity, Collateral Coverage Factors and Collateral Maintenance Requirements applicable to Customer and its Eligible Collateral, and Customer agrees to comply with such changes upon Seattle Bank's notice thereof to Customer.
Section 2.9 Additional Covenants by Customer   Customer will maintain a copy of this Agreement in its official records at all times. Customer will give Seattle Bank notice of any material event that would cause Customer, pursuant to the provisions of the Act, the Regulations, the Credit Policy or this Agreement, to be ineligible to become a Customer of Seattle Bank or ineligible to obtain Advances, Commitments or Other Credit Accommodations. Customer will give Seattle Bank notice of any material adverse change in or affecting Customer's financial condition. Failure to provide any notice required pursuant to this section shall constitute an Event of Default under this Agreement. Any obligation of Seattle Bank to fund any Advance or Other Credit Accommodation, including any Commitment, shall be conditioned upon the satisfaction of each of the following conditions precedent as of the date hereof and at the time of funding of each Advance or Other Credit Accommodation: (a) all representations and warranties of Customer contained this Agreement, or otherwise made by Customer to Seattle Bank, are and continue to be correct; (b) no Event of Default under this Agreement, or other documentation relating to the Advance or Other Credit Accommodation, has occurred or would result from such Advance; (c) the Seattle Bank has received such approvals, opinions or documents that the Seattle Bank may request in connection with the Advance or Other Credit Accommodation; (d) Customer satisfies all membership and borrowing eligibility criteria under the Act, the Regulations, this Agreement and the Credit Policy; (e) Customer, in the judgment of Seattle Bank, is not engaging or has not engaged in unsafe or unsound banking practices, has adequate capital, is not sustaining operating losses, does not have financial or managerial deficiencies that bear on the Customer's creditworthiness, and has no other deficiencies as determined by Seattle Bank; (f) there has been in Seattle Bank's judgment no material adverse change in Customer, the Collateral or any financial or other information submitted by Customer to Seattle Bank in connection with an Advance, Other Credit Accommodations or any Other Obligations; and (g) there has been in Seattle Bank's judgment no change in governmental laws or regulations that materially affects the Seattle Bank's power, right, authority, or ability to fund the Advance or Other Credit Accommodation.
Article III. Security Agreement
Section 3.1 Creation of Security Interest   As security for the timely payment of all Indebtedness and outstanding Commitments, Customer hereby assigns, transfers, and pledges to Seattle Bank, and grants to Seattle Bank a security interest in all of the following Collateral now owned or hereafter acquired by Customer, and all proceeds thereof:

		
	3.1.1
	All promissory notes and other instruments, all mortgages, deeds of trust and other supporting obligations, all mortgage-backed securities, securities and other investment property, and all accounts, general intangibles, payment intangibles, chattel paper, letter of credit rights, deposit accounts, money, goods, software, commercial tort claims, equipment and inventory, now owned or hereafter acquired by Customer, including without limitation:

		
	(a)
	All Capital Stock now owned or hereafter acquired by Customer in Seattle Bank, including all payments which have been or hereafter are made on account of subscriptions to and all unpaid dividends on such stock;

		
	(b)
	All Funds of Customer now or hereafter on deposit with Seattle Bank;

		
	(c)
	All Eligible Mortgage Collateral and related Mortgage Documents now owned or hereafter acquired by Customer;

		
	(d)
	All Eligible Securities Collateral now owned or hereafter acquired by Customer; and

		
	(e)
	All Other Eligible Collateral now owned or hereafter acquired by Customer.

		
	3.1.2
	It is the intention of Seattle Bank and Customer that the Collateral shall include all assets now owned or hereafter acquired by Customer in which a security interest can be created under the UCC, specifically including but not limited to the property types and categories set forth in Subsection 3.1.1 and Subparagraphs 3.1.1(a)-(e) above. All of the Collateral shall secure the Indebtedness, irrespective of whether only part of the Collateral constitutes Eligible Collateral for purposes of satisfying the Collateral Maintenance Requirements of Section 3.3 below.

Section 3.2 Customer's Representations and Warranties Regarding Collateral   Customer represents and warrants to Seattle Bank, as of the date of this Agreement and the date of each Advance, Commitment or Other Credit Accommodation made under this Agreement, as follows:
		
	3.2.1
	Customer owns and has marketable title to all Collateral and has the right and authority to grant a security interest in the Collateral and to subject all of the Collateral to this Agreement, and Customer covenants that it will defend the Collateral against the claims and demands of all persons.

		
	3.2.2
	With respect to any Eligible Mortgage Collateral originated by any party (whether affiliated or unaffiliated) other than Customer, the Mortgage Documents contain either a complete chain of endorsements (either on the mortgage note or a related allonge) from the originating party to Customer, a complete chain of endorsements in blank from each successive holder of the Mortgage Collateral or are MERS Mortgages for which Customer's ownership in the whole obligation secured by the MERS Mortgage has been registered with MERS.

		
	3.2.3
	The information contained in any financial report, call report, certification, audit, confirmation, report, schedule, or other documents required under this Agreement and any other information given from time to time by Customer as to each item of Eligible Collateral, and any information provided by Customer to its supervising state or federal agency in call reports or other reports, from which Seattle Bank obtains information related to Collateral, is true, accurate and complete in all material respects.

		
	3.2.4
	All Eligible Collateral meets the standards and requirements from time to time established by the Credit Policy, the Act and the Regulations and, in any case of variances among the Act, the Regulations and the Credit Policy, the most restrictive of such standards and requirements.

3.2.5    To Customer's knowledge, no part of any real property encumbered by Mortgage Collateral contains or is subject to the effects of any hazardous materials or other hazardous substances, except as may have been disclosed to and reasonably approved by Customer in its underwriting of Mortgage Collateral, and Customer will indemnify and hold Seattle Bank harmless, and, at the option of Seattle Bank, defend Seattle Bank (with counsel satisfactory to Seattle Bank) from all liabilities, costs, damages, claims or expenses (including attorneys' fees and environmental consultants' fees) suffered, paid or incurred by Seattle Bank resulting from or arising out of any requirement under any applicable federal, state or local law, regulation, ordinance, order, judgment or decree relating to the release or cleanup of any such hazardous material or hazardous substance.

		
	3.2.6
	Except as permitted under Section 3.3 of this Agreement, Customer will not (i) sell, offer to sell or otherwise transfer Eligible Collateral, nor pledge, mortgage or create or suffer to exist a lien, claim of lien, encumbrance, right of set-off or other security interest or collateral assignment of any kind whatsoever in Eligible Collateral or the proceeds thereof in favor of any person other than Seattle Bank, or (ii) transfer physical possession of the Mortgage Documents evidencing Eligible Mortgage Collateral to any third party or affiliate without the prior written consent of Seattle Bank.

		
	3.2.7
	All taxes, assessments and governmental charges levied or assessed or imposed upon or with respect to Eligible Collateral, including any real property subject to Eligible Mortgage Collateral, will be paid and if Customer fails to promptly pay such taxes, assessments or governmental charges, Seattle Bank may (but will not be required to) pay the same and any such expense will be an obligation under this Agreement.

		
	3.2.8
	Customer will notify Seattle Bank promptly in writing of any change in the location of the Eligible Collateral and of any change in location of its principal place of business or jurisdiction of incorporation, organization or formation including without limitation, if Customer is organized under the laws of the United States, the location determined by Section 9-307(f) of the UCC.

		
	3.2.9
	Customer hereby grants to Seattle Bank a security interest in and grants a right of access to all books and records relating to the Collateral and any electronic records system that contains any records of any of the Collateral.  To the extent necessary for Seattle Bank to access such records, Customer shall, upon request by the Seattle Bank and at its own expense, provide Seattle Bank with such licenses and other authorizations as may be appropriate to allow Seattle Bank to obtain such access to the same extent Customer may do so, including the right to make and retain copies thereof.

		
	3.2.10
	In the event that any Mortgage Documents or Mortgage Collateral becomes the subject of any form of enforcement, including without limitation judicial or non-judicial foreclosure or the acceptance of a deed in lieu of judicial or non-judicial foreclosure, upon notice to Customer to that effect by Seattle Bank the following procedures shall apply:

		
	(a)
	Customer shall provide Seattle Bank with (i) true and complete copies of all notices of foreclosure and trustee's sale and all complaints for judicial foreclosure that relate to any of the Mortgage Collateral at the time the same are given to the mortgagor, (ii) written notice of any proposed deed in lieu of any judicial or nonjudicial foreclosure of any Mortgage Collateral no later than 30 days prior to the date such deed is proposed to be accepted, and (iii) true and complete copies of any related settlement agreements between Customer and such mortgagors at the time such agreements are executed;

		
	(b)
	Customer acknowledges and agrees that the Mortgage Collateral includes the cash proceeds payable to Customer that are derived from any of the other Mortgage Collateral and has granted a security interest in the same to Seattle Bank.  In the event that Customer receives cash consideration upon such foreclosure, judicial or non-judicial, or in connection with a deed in lieu of any such foreclosure, either from the obligor on the Mortgage Document or any third party, Customer shall immediately deposit such cash consideration, in the form received, in its Account at Seattle Bank; and.

		
	(c)
	In the event that Customer obtains title to any of the real estate secured by the Mortgage Documents, Customer shall forthwith, at the same time it records any deed or title in its favor or in favor of its nominee, record a mortgage or deed of trust, in form and substance satisfactory to Seattle Bank, in favor of Seattle Bank, securing a portion of the Indebtedness. Any recording or other tax applicable to such mortgage or deed of trust shall be the responsibility of Customer. The amount of such mortgage or deed of trust shall, unless Seattle Bank agrees in writing to a different amount, be equal to the principal of the note or debt originally secured by the Mortgage Document and any subsequent increases in the principal so secured.  Customer shall provide Seattle Bank, at Customer's sole cost and expense, with an owner's policy of title insurance that insures Seattle Bank as the sole holder of fee title to the foreclosed Mortgage Collateral and includes no exceptions related to Customer's enforcement of the Mortgage Document or any liens that were subordinate thereto and with property insurance with a carrier or carriers and with coverages, terms and insured amount satisfactory to Seattle Bank, in Seattle Bank's favor.

Section 3.3 Collateral Maintenance Requirement
		
	3.3.1
	Customer will at all times maintain an amount of Eligible Collateral, pledged to Seattle Bank under this Agreement, which, after discounting by the Collateral Coverage Factor(s) applicable to such Eligible Collateral, has a value, as determined by Seattle Bank, of not less than the aggregate amount of all Advances, Commitments and Other Credit Accommodations then outstanding. This Collateral Maintenance Requirement may be increased or decreased by Seattle Bank at any time, based upon Customer's creditworthiness or the quality of Customer's Eligible Collateral, as determined by Seattle Bank from time to time. Customer will not, without prior written consent of Seattle Bank, assign, pledge, transfer, create any security interest in, sell, or otherwise dispose of any Eligible Collateral if:  (i) such Eligible Collateral is Physical Possession or Control Collateral under Section 3.5 of this Agreement; (ii) immediately after such action, Customer's remaining Eligible Collateral would be insufficient to comply with the Collateral Maintenance Requirement; or (iii) at the time of such action, there is an outstanding Event of Default under Section 4.1 of this Agreement.

		
	3.3.2
	All Eligible Collateral (other than Physical Possession or Control Collateral held by Seattle Bank or its custodian) will be held by Customer in trust for the benefit of, and subject to the direction and control of Seattle Bank, and will be physically safeguarded by Customer with at least the same degree of care as Customer would ordinarily use in prudently safeguarding its property. Without limiting the foregoing, Customer will take all action necessary or desirable to protect and preserve Eligible Collateral held by Customer, including without limitation the maintaining of insurance on property securing mortgages constituting Eligible Collateral (such policies and certificates of insurance relating to such mortgages are in this Agreement called “insurance”), the collection of payments under all such mortgages and under all such insurance, and otherwise assuring that loans comprising Eligible Mortgage Collateral are serviced in accordance with the standards of a reasonable and prudent mortgagee. Customer, as Seattle Bank's agent, will collect all payments when due on all Eligible Collateral held by Customer in trust for the benefit of Seattle Bank. If Seattle Bank requests, all such collections shall be held separate from Customer's other monies in one or more designated Accounts maintained at Seattle Bank. At Seattle Bank's sole discretion, Seattle Bank may then apply such collections to the payment of Indebtedness as it becomes due; otherwise, and provided there is no outstanding Event of Default under Section 4.1 of this Agreement, Customer may use and dispose of such collections in the ordinary course of its business.

		
	3.3.3
	Subject to the Collateral Maintenance Requirement of Subsection 3.3.1 above, and provided there is no outstanding Event of Default under Section 4.1 of this Agreement, Customer may use or dispose of all or part of the Collateral and proceeds thereof in the ordinary course of its business. Notwithstanding the foregoing, Customer may not use or dispose of all or part of Physical Possession or Control Collateral or the proceeds thereof, except upon the De-Pledging of such Physical Possession or Control Collateral in accordance with Section 3.6 below.

		
	3.3.4
	Customer will, upon request of Seattle Bank, immediately take such actions and execute such documentation as Seattle Bank may deem necessary or appropriate to create and perfect Seattle Bank's security interest in the Collateral or otherwise to obtain, preserve, protect, enforce or collect the Collateral; including, without limitation, executing any agreements, instructions or other documents that Seattle Bank deems necessary to establish “control” under the provisions of the UCC of Collateral by Seattle Bank or by its custodian on Seattle Bank's behalf.

		
	3.3.5
	Any Collateral that is not satisfactory to Seattle Bank may be rejected at any time as Eligible Collateral by Seattle Bank, or in Seattle Bank's discretion may at any time be discounted by a Collateral Coverage Factor that is less than the Collateral Coverage Factor normally ascribed thereto under the Credit Policy. Seattle Bank may require, before or during the period when any Advance is made to Customer, that Customer make any or all Eligible Securities Collateral, all Mortgage Documents for Eligible Mortgage Collateral and any other documents pertaining to Eligible Collateral, including without limitation any agreements between Customer and its servicing agents, available to Seattle Bank for its inspection and approval.

3.3.6    In the case of any Eligible Collateral which is physically possessed by Customer, Customer will grant, upon Seattle Bank's written request, an irrevocable license to Seattle Bank, in form and content satisfactory to Seattle Bank (and if requested by Seattle Bank, joined in by any real property owner or landlord of the premises where such Eligible Collateral is located), that will allow representatives of Seattle Bank to enter 

the premises of Customer in order to inspect from time to time and/or remove and take possession of the Eligible Collateral.
		
	3.3.7
	In the case of Eligible Collateral which is physically possessed by any affiliate or servicing agent of Customer, Customer will, upon Seattle Bank's written request, cause Customer's affiliate or servicing agent to (i) grant an irrevocable license to Seattle Bank, in form and content satisfactory to Seattle Bank (and if requested by Seattle Bank, joined in by any real property owner or landlord of the premises where such Eligible Collateral is located), that will allow representatives of Seattle Bank to enter the premises of Customer's affiliate or servicing agent in order to inspect from time to time and/or remove and take possession of the Eligible Collateral; and/or (ii) establish custodial or control agreements, in form and content satisfactory to Seattle Bank, under which the affiliate's or servicing agent's physical possession will be held for the benefit of Seattle Bank as secured party. Seattle Bank may require such arrangements irrespective of whether the Eligible Collateral has been designated as Listed Collateral or Physical Possession or Control Collateral under Sections 3.4 or 3.5 below.

		
	3.3.8
	Seattle Bank's acceptance as Eligible Collateral of any Mortgage Collateral relating to multifamily or commercial properties may, in the discretion of Seattle Bank, be conditioned upon Customer's execution and delivery of Rider(s) to this Agreement containing warranties and representations required of Customer by Seattle Bank for any Mortgage Collateral relating to multifamily or commercial properties.

Section 3.4 Listed Collateral
		
	3.4.1
	At any time that Customer's Eligible Mortgage Collateral or Eligible CFI Collateral becomes subject to mandatory listing requirements under the Credit Policy, or at any other time, at the sole discretion of Seattle Bank, Customer will deliver to Seattle Bank, upon Seattle Bank's written request, a status report and accompanying schedules, all in form and content acceptable to Seattle Bank, specifying and describing any mortgage loan pledged to Seattle Bank as Eligible Mortgage Collateral and any item of Eligible CFI Collateral pledged to Seattle Bank (collectively, “Listed Collateral”). At such other times as Seattle Bank may request, Customer will deliver to Seattle Bank periodic status reports and accompanying schedules, in form and content acceptable to Seattle Bank, describing the status of the Listed Collateral.

		
	3.4.2
	Upon Seattle Bank's written request, Customer will physically segregate the mortgages, loan packages and other property comprising Listed Collateral from all other property of Customer in a manner satisfactory to Seattle Bank. Until particular items of Listed Collateral are De-Pledged in accordance with the Credit Policy, the physical segregation of such items shall be maintained.

		
	3.4.3
	Upon Seattle Bank's written request, Customer will hold each loan package included in Listed Collateral in a separate file folder, with each file folder clearly labeled with the loan identification number and the name of the mortgagor. Upon written request of Seattle Bank, the file folder for each package of loan documents included within Listed Collateral will be clearly marked or stamped with the statement: “The Instrument(s) and Security Relating to this Loan Have Been Pledged to the Federal Home Loan Bank of Seattle.”

Section 3.5 Physical Possession or Control Collateral
		
	3.5.1
	At any time that Customer becomes subject to mandatory physical possession or control requirements under the Credit Policy, or at any other time at the sole discretion of Seattle Bank, Customer will deliver to Seattle Bank, or to a custodian approved by Seattle Bank in its discretion, upon Seattle Bank's written request, the mortgage loans pledged to Seattle Bank as Eligible Mortgage Collateral, securities or other investment property pledged to Seattle Bank as Eligible Securities Collateral, loans pledged to Seattle Bank as Eligible CFI Collateral and each item of Other Eligible Collateral pledged to Seattle Bank (collectively, “Physical Possession or Control Collateral”).

		
	3.5.2
	Eligible Mortgage Collateral delivered to Seattle Bank or its approved custodian as Physical Possession or Control Collateral will be endorsed or assigned by Customer in blank or, if requested by Seattle Bank, to Seattle Bank. For MERS Mortgages, Customer will execute a notification to MERS of its assignment of the MERS Mortgage in blank or, if requested by Seattle Bank, to Seattle Bank. Regardless of whether any endorsement is stated to be “without recourse,” Customer shall be liable for any deficiency remaining after any exercise by the Bank of its remedies in respect of Collateral, as provided in Section 4.2 below.

		
	3.5.3
	With respect to certificated Eligible Securities Collateral pledged to Seattle Bank as Physical Possession or Control Collateral, the delivery requirements contained in this Section 3.5 will be satisfied, at the election of Seattle Bank, by one of more of: (i) transfer of physical possession of such certificated securities to Seattle Bank; (ii) re-registration of such securities in Seattle Bank's name; or (iii) possession of such certificated securities, by Seattle Bank or on Seattle Bank's behalf, by a custodian appointed by Seattle Bank. Any such possession of certificated securities by an approved custodian, on Seattle Bank's behalf, will be effected and evidenced by documentation acceptable to Seattle Bank in form and content, establishing Seattle Bank's control of such certificated securities under the provisions of the UCC.

		
	3.5.4
	With respect to Eligible Securities Collateral pledged to Seattle Bank as Physical Possession or Control Collateral, whether in uncertificated form or as a security entitlement, satisfaction of the delivery requirements contained in this Section 3.5 will be effected and evidenced by agreements, instructions or other documentation acceptable to Seattle Bank in form and content, establishing Seattle Bank's control of such uncertificated securities under the provisions of the UCC.  The control requirements will be satisfied, at the election of Seattle Bank, by one or more of:  (i) re-registration of any uncertificated securities in Seattle Bank's name; (ii) entering into an agreement that, under the provisions of the UCC, provides the Seattle Bank with control of any uncertificated securities with the issuer or transfer agent thereof; (iii) entering into agreements that, under the provisions of the UCC, provide the Seattle Bank with control of any security entitlements with the securities intermediary establishing such security entitlement; or (iv) in the case of security entitlements, making the Seattle Bank the entitlement holder, within the meaning of the UCC, of such security entitlements.

		
	3.5.5
	Concurrently with the initial delivery of Physical Possession or Control Collateral, and at such other times as Seattle Bank may request, Customer will deliver to Seattle Bank a status report and accompanying schedules, in form and content acceptable to Seattle Bank, describing the status of the Physical Possession or Control Collateral held by Seattle Bank or its custodian. At such other times as Seattle Bank may request, Customer will deliver to Seattle Bank periodic status reports and accompanying schedules, in form and content acceptable to Seattle Bank, describing the status of the Physical Possession or Control Collateral. Until Physical Possession or Control Collateral is De-Pledged in accordance with Section 3.6 below, such physical possession or control by Seattle Bank or its approved custodian shall be maintained with respect to such Physical Possession or Control Collateral. At Seattle Bank's sole discretion, all proceeds of the Physical Possession or Control Collateral, including without limitation all payments made under the loans or investment property constituting Physical Possession or Control Collateral, shall be held separate from Customer's other monies in one or more designated Accounts maintained at Seattle Bank. Seattle Bank may apply such monies to the payment of Indebtedness as it becomes due, or hold such monies as part of its Physical Possession or Control Collateral, subject to De-Pledging under the terms and conditions of Section 3.6 below.

		
	3.5.6
	Customer agrees to pay to Seattle Bank such reasonable fees and charges as may be assessed by Seattle Bank to cover Seattle Bank's overhead and other costs relating to the receipt, holding, De-Pledge, redelivery and reassignment of Physical Possession or Control Collateral and to reimburse Seattle Bank upon request for all filing or recording fees and other reasonable expenses, disbursements and advances incurred or made by Seattle Bank in connection therewith, including without limitation reasonable attorneys fees and costs of legal counsel of Seattle Bank. Customer shall pay the fees and expenses, including, without limitation, reasonable attorneys fees and costs, of any custodian approved or appointed by Seattle Bank with respect to Collateral. Any such sums owed to Seattle Bank or to such custodian may be collected by Seattle Bank, at its option, by debiting Customer's Account(s) with Seattle Bank.

Section 3.6 De-Pledging of Collateral   Upon receipt by Seattle Bank of a written request from Customer, in form and content acceptable to Seattle Bank, for the De-Pledge of any part of the Collateral or proceeds thereof in which Seattle Bank has perfected its security interest, setting forth (i) a sufficient description of the Collateral to be withdrawn or reassigned; and (ii) a certificate of an authorized officer of Customer certifying that the immediately after such De-Pledge, Customer's remaining Eligible Collateral will be sufficient to comply with the Collateral Maintenance Requirement, Seattle Bank will, subject to the succeeding sentence of this Section 3.6, promptly return, reassign or partially release to Customer, at Customer's expense, the Collateral specified in said request. Notwithstanding anything to the contrary contained in this Agreement, Customer may not obtain any such withdrawal or reassignment (a) while an Event of Default under this Agreement has occurred and is continuing; (b) at any time that Seattle Bank's

records indicate that immediately after such De-Pledge, Customer's remaining Eligible Collateral would be insufficient to comply with the Collateral Maintenance Requirement as determined by Seattle Bank; or (c) at any time that Seattle Bank reasonably and in good faith deems itself insecure. Customer will pay upon request for all filing or recording fees and other reasonable expenses incurred by Seattle Bank or any approved custodian in connection with De-Pledging of any Collateral, including without limitation reasonable attorneys fees and costs of legal counsel of Seattle Bank or such custodian. Any such sums owed to Seattle Bank or to such custodian may be collected by Seattle Bank, at its option, by debiting Customer's demand or time deposit Account(s) with Seattle Bank.  Upon a De-Pledge, ordinarily the Seattle Bank will not agree to amend its financing statements covering Collateral to reflect the De-Pledge but will, where appropriate and at Customer's expense, evidence that it has released the Collateral that was subject to the De-Pledge from its security interest.  
Section 3.7 Reports, Collateral Audits; Access
		
	3.7.1
	If requested by Seattle Bank at any time, Customer will furnish to Seattle Bank an audit report prepared in accordance with generally accepted auditing standards by an external auditor acceptable to Seattle Bank, certifying the book value of the Eligible Collateral owned by Customer. If requested by Seattle Bank at any time, Customer will furnish to Seattle Bank a written report covering such matters regarding Collateral as Seattle Bank may require, including without limitation a listing of mortgages comprising Eligible Mortgage Collateral or loans comprising Eligible CFI Collateral, the unpaid principal balances thereof, the status of payments thereon and of taxes and insurance on the property encumbered thereby; securities and the publicly listed market value thereof, and any other information requested by Seattle Bank regarding the Collateral. Customer will give Seattle Bank access at all reasonable times to Collateral in Customer's possession and to Customer's books and records of account relating to such Collateral, for the purpose of Seattle Bank's examining, verifying or reconciling the Collateral and Customer's report to Seattle Bank thereon.

		
	3.7.2
	All Collateral and the satisfaction by Customer of the Collateral Maintenance Requirement will be subject to audit and verification by or on behalf of Seattle Bank. Such audits and verifications may occur without notice during Customer's normal business hours or upon reasonable notice at such other times as Seattle Bank may reasonably request. Customer will provide access to, and will, at its own expense, make adequate working facilities available to, the representatives or agents of Seattle Bank for purposes of such audits and verifications. Customer agrees to pay to Seattle Bank such reasonable fees and charges as may be assessed by Seattle Bank to cover overhead and other costs relating to such audit and verification.

Section 3.8 Additional Documentation   Customer will make, execute, record and deliver to Seattle Bank such notices, instructions, assignments, listings, powers, and other documents with respect to the Collateral and Seattle Bank's security interest therein in such form as Seattle Bank may require. Customer authorizes Seattle Bank to file such financing statements as Seattle Bank deems necessary with respect to the Collateral, and Customer hereby ratifies any financing statements previously filed by Seattle Bank with respect to the Collateral.
Section 3.9 Seattle Bank's Responsibilities as to Collateral   In the event that Seattle Bank takes possession of any Collateral pursuant to the terms of this Agreement, Seattle Bank's duty as to the Collateral will be solely to use reasonable care in the custody and preservation of the Collateral in its possession, which will not include any steps necessary to preserve Customer's rights against any third parties nor the duty to send notices, perform services, or take any action in connection with management of the Collateral. Seattle Bank will not have any responsibility or liability for the form, sufficiency, correctness, genuineness or legal effect of any instrument or document constituting a part of the Collateral, or any signature thereon or the description or misdescription, or value of property represented or secured, or purported to be represented or secured, by any such document or instrument. Customer agrees that any and all Collateral may be removed by Seattle Bank from the state or location where situated, and may there be dealt with by Seattle Bank as provided in this Agreement.
Section 3.10 Seattle Bank's Rights as to Collateral   At any time or times, at the sole expense of Customer, Seattle Bank will have the right, before or after the occurrence of an Event of Default as set forth in Section 4.1 of this Agreement, but shall not have the obligation, to do any or all things and take any and all actions that are deemed necessary or convenient by Seattle Bank to the protection of its rights and interests under this Agreement and are lawful under the Act, the Regulations and the laws of the State of Washington, including, but not limited to, the following:

		
	3.10.1
	Terminate any consent given under this Agreement;

		
	3.10.2
	Notify obligors on any Collateral to make payments thereon directly to Seattle Bank;

		
	3.10.3
	Endorse any Collateral that is in Customer's name or that has been endorsed by others to Customer's name;

		
	3.10.4
	Enter into any extension, compromise, settlement, or other agreement relating to or affecting any Collateral;

		
	3.10.5
	Take any action Customer is required to take or which is otherwise necessary to: (i) file a financing statement or otherwise perfect a security interest in any or all of the Collateral; or (ii) to obtain, preserve, protect, enforce or collect the Collateral;

		
	3.10.6
	Take control of any funds or other proceeds generated by the Collateral and use the same to reduce Indebtedness as it becomes due; and

		
	3.10.7
	Cause the Collateral to be transferred to Seattle Bank's name or the name of its nominee.

Section 3.11    Power of Attorney   Customer hereby appoints Seattle Bank as its true and lawful attorney, for and on behalf of Customer and in its name, place and stead, to prepare, execute and record endorsements and assignments to Seattle Bank of all or any item of Collateral, giving or granting to Seattle Bank, as such attorney, full power and authority to do or perform every lawful act necessary or proper in connection therewith as fully as Customer might or could do. Customer hereby ratifies and confirms all that Seattle Bank will lawfully do or cause to be done by virtue of this special power of attorney. This special power of attorney is granted for a period commencing on the date of this Agreement and continuing until the indefeasible discharge of all Indebtedness and Commitments and all obligations of Customer under this Agreement regardless of any Event of Default by Customer, is coupled with an interest and is irrevocable for the period granted. As Customer's true and lawful attorney-in-fact, Seattle Bank has no responsibility to take any steps necessary to preserve rights against prior parties nor the duty to send notices, perform services, or take any action in connection with the management of the Collateral.
Article IV. Default; Remedies
Section 4.1 Events of Default; Acceleration   Upon the occurrence of and during the continuation any of the following events or conditions of default (“Event of Default'), Seattle Bank may at its option, by a notice to Customer, declare all Indebtedness and accrued interest thereon, including any prepayment fees or charges which are payable in connection with the payment prior to the originally scheduled maturity of any Advance or Other Credit Accommodation, to be immediately due and payable without presentment, demand, protest or any further notice and/or terminate any obligation on the part of Seattle Bank in respect of any Commitment to make or continue making any Advances:
		
	4.1.1
	Failure of Customer to pay when due any interest on or principal of any Advance or Other Credit Accommodation; or

		
	4.1.2
	Failure of Customer to perform any promise or obligation or to satisfy any condition or liability contained in this Agreement, the Credit Policy or any Advances Note, Advance Master Application or Advance Confirmation Advice, or in any other agreement to which Customer and Seattle Bank are parties, whether pertaining to any Advance, Other Credit Accommodation or Other Obligations; or

		
	4.1.3
	Evidence coming to the attention of Seattle Bank that any representations, statements, or warranties made or furnished in any manner to Seattle Bank by or on behalf of Customer in connection with any Advance or Other Credit Accommodation, any specification of Eligible Collateral or any certification of Fair Market Value were false, misleading or incomplete in any material respect when made or, with the passage of time, have become untrue in any material respect; or 

		
	4.1.4
	Failure of Customer to maintain adequate Eligible Collateral free of any encumbrances or claims as required in this Agreement, or any material damage to or loss of Eligible Collateral, or any sale or encumbrance of any Eligible Collateral except as permitted by this Agreement

		
	4.1.5
	The issuance of any tax, levy, seizure, attachment, garnishment, levy of execution, or other process with respect to any of the Collateral; or

		
	4.1.6
	Any suspension of payment by Customer to any creditor of sums due or the occurrence of any event which results in another creditor having the right to accelerate the maturity of any indebtedness of Customer under any security agreement, indenture, loan agreement, or comparable undertaking; or

		
	4.1.7
	Any taking over of the Customer or any of its assets or affiliates by a supervising agency, or an application for or appointment of a conservator or receiver for Customer or any affiliate of Customer or Customer's property, entry of a judgment or decree adjudicating Customer or any affiliate of Customer insolvent or bankrupt, an assignment by Customer or any affiliate of Customer for benefit of creditors, or the entry of any supervisory or consent order pertaining to Customer or any affiliate of Customer by any regulatory body or by any court at the request of such regulator; or

		
	4.1.8
	Sale by Customer of all or a material part of Customer's assets or the taking of any other action by Customer to liquidate or dissolve; or

		
	4.1.9
	Termination of Customer's membership in Seattle Bank, or Customer's ceasing to be a type of financial institution that is eligible under the Act or the Regulations to become a Member of Seattle Bank; or

		
	4.1.10
	Merger, consolidation or other combination of Customer with an entity which is not a Member of Seattle Bank if the non-Member entity is the surviving entity; or

		
	4.1.11
	Seattle Bank determines in good faith that a material adverse change has occurred in the financial condition of Customer from that disclosed at the time of the making of any Advance or from the condition of Customer as theretofore most recently disclosed to Seattle Bank; or

		
	4.1.12
	Seattle Bank in good faith deems itself insecure even though Customer is not otherwise in default; or

		
	4.1.13
	Customer has borrowed, or committed to borrow, from any source an amount that is greater than the amount Customer is permitted to borrow under applicable law.

Section 4.2 Remedies   Upon the occurrence of any Event of Default, Seattle Bank will have all of the rights and remedies provided by applicable law, including but not be limited to all of the remedies of a secured party under the UCC and the rights and remedies contained in any mortgage or deed of trust in favor of Seattle Bank or its nominee. In addition, Seattle Bank may take immediate possession of any of the Collateral or any part thereof wherever the same may be found. Seattle Bank may sell, assign and deliver the Collateral or any part thereof at public or private sale for such price as Seattle Bank deems appropriate without any liability for any loss due to decrease in the market value of the Collateral during the period held. Seattle Bank will have the right to purchase all or part of the Collateral at such sale. If the Collateral includes insurance or securities which will be redeemed by the issuer upon surrender, or any accounts or deposits in the possession of Seattle Bank, Seattle Bank may realize upon such Collateral without notice to Customer. If any notification of intended disposition of any of the Collateral is required by applicable law, then, if no greater period of notification is required by applicable law, such notification will be deemed reasonable and properly given if mailed, postage prepaid, at least 10 days before any such disposition to the address of Customer appearing on the records of Seattle Bank. The proceeds of any sale will be applied in the order that Seattle Bank, in its sole discretion, may choose. Customer agrees to pay all the costs and expenses of Seattle Bank in the collection of the Indebtedness and enforcement of Seattle Bank's rights and remedies in case of default, including, without limitation, reasonable attorneys' fees, including in any proceedings in bankruptcy or receivership and on appeal. Seattle Bank will, to the extent required by law, apply any surplus after payment of the Indebtedness, provision for repayment to Seattle Bank of any amounts to be paid or advanced under outstanding Commitments, and all costs of collection and enforcement to third parties claiming a secondary security interest in the Collateral, with any remaining surplus paid to Customer. Customer will be liable to Seattle Bank for any deficiency remaining.
Section 4.3 Payment of Prepayment Charges   Any prepayment fees or charges for which provision is made, whether under the Regulations, the Credit Policy, or any applicable Advance Master Application, Advances Note, Advance Confirmation Advice or Swap Transaction, as the case may be, with respect to any Advances or Other Credit Accommodations, will be payable at the time of any voluntary or involuntary payment of the principal of such Advances or Other Credit Accommodations prior to the originally scheduled maturity thereof, including, without limitation, payments that are made as a part of a liquidation of Customer or that become due as a result of an acceleration pursuant to Section 4.1 of this Agreement, whether such payment is made by Customer, by a conservator, receiver, liquidator or trustee of or for Customer, or by any successor to or any assignee of Customer.

Article V. Accounts
Section 5.1 Deposit Accounts   The Customer may open Accounts with the Seattle Bank subject to the Act, the Regulations, the Credit Policy and any other policies adopted by the Seattle Bank from time to time in respect to Accounts and related services, including without limitation the wire transfer of funds. Any Customer's funds deposited in Accounts shall be subject to withdrawal or charge at any time and from time to time upon wire transfers or any other orders for the payment of money when made and drawn on behalf of the Customer by a person or persons authorized by Resolution of the Customer under Section 6.7 below. The Seattle Bank is authorized to pay any such wire transfers or other orders, provided they are in the form prescribed by it, and to charge the Customer's Accounts therefor, without inquiry as to the circumstances of issue or the disposition of the proceeds, even if drawn to the individual order of any authorized person or payable to others for his account.
Section 5.2 Bank's Reliance   The Seattle Bank, if it acts in good faith and with ordinary care (and without liability if it does so act), can charge the Accounts with orders received by the Seattle Bank by telephone, or otherwise orally, from any person acting for or purporting to act for the Customer as its officer or employee, for the transfer of funds to others, including the person giving such instructions or payable to others for his account, or between Accounts of the Customer. All scheduled charges and fees adopted by the Seattle Bank from time to time in respect to Accounts and related services will be charged monthly to such Accounts.
Section 5.3 Positive Balance Requirement   The Customer shall maintain a net positive collected balance in all of its Accounts. The Seattle Bank shall have the option of closing or restricting the use of Accounts in which positive balances are not maintained. For each day the aggregate collected balance of an Account is negative, the Customer shall pay such overdraft charges as are consistent with the scheduled charges and fees adopted by the Seattle Bank from time to time in respect to Accounts and related services.  These overdraft charges are in addition to any other rights and remedies of Seattle Bank under this Agreement and any other agreements governing Accounts.
Article VI. Miscellaneous
Section 6.1 General Representations and Warranties by Customer   Customer hereby represents and warrants that, as of the date of this Agreement and the date of each Advance or Other Credit Accommodation, including any Commitment, made pursuant to this Agreement:
		
	6.1.1
	Customer is not, and neither the execution of nor the performance of any of the transactions or obligations of Customer under this agreement will, with the passage of time, the giving of notice or otherwise, cause Customer to be: (i) in violation of its charter or articles of incorporation, by-laws, the Act, or the Regulations, any other law or administrative regulation, or any court or administrative decree; or (ii) in default under or in breach of any indenture, contract, or other instrument or agreement to which Customer is a party or by which it or any of its property is bound.

		
	6.1.2
	Customer has full corporate power and authority and has received all corporate and governmental authorizations and approvals (including without limitation those required under the Act and the Regulations) as may be required to enter into and perform its obligations under this Agreement, to borrow each Advance and to obtain each Other Credit Accommodation.

		
	6.1.3
	The information given by Customer in any document provided, or in any oral statement made, in connection with any application or request for an Advance or Other Credit Accommodation, is true, accurate and complete in all material respects.

Section 6.2 Assignment   Seattle Bank may assign or negotiate to any other Federal Home Loan Bank or to any other person or entity, with or without recourse, any Indebtedness of Customer or participations therein, and Seattle Bank may assign or transfer all or any part of Seattle Bank's right, title, and interest in and to this Agreement and may assign and deliver the whole or any part of the Collateral to the transferee, which will succeed to all the powers and rights of Seattle Bank in respect thereof, and Seattle Bank will thereafter be forever relieved and fully discharged from any liability or responsibility with respect to the transferred Collateral. Customer hereby acknowledges and agrees that any such disposition will give rise to a direct obligation of Customer to the participant. Customer hereby authorizes Seattle Bank and each participant, in case of default by Customer under this Agreement, to proceed directly, by right of setoff or otherwise, against any assets of Customer which may at the time of such default be in the respective hands of Seattle Bank or any such participant. Customer further agrees that Seattle Bank may furnish any information pertaining to Customer which is in the possession of Seattle Bank to any prospective participant to assist 

it in evaluating such participation provided that any non-public information reasonably designated in writing to Seattle Bank by Customer as constituting non-public information will be furnished to such prospective participant on a confidential basis. Customer may not assign or transfer any of its rights or obligations under this Agreement without the express prior consent of Seattle Bank, which may be granted or withheld in Seattle Bank's sole discretion.
Section 6.3 Discretion of Seattle Bank to Grant or Deny Advances   Nothing contained in this Agreement or in any documents describing or setting forth the Credit Policy or any other policy of Seattle Bank will be construed as an agreement or commitment on the part of Seattle Bank to grant Advances or extend Commitments or Other Credit Accommodations under this Agreement, the right and power of Seattle Bank in its discretion to either grant or deny any of the foregoing being herein expressly reserved.
Section 6.4 Amendment; Waivers   No modification, amendment or waiver of any provision of this Agreement or consent to any departure therefrom will be effective unless executed by the party against whom such change is asserted and will be effective only in the specific instance and for the purpose for which given. No notice to or demand on Customer in any case will entitle Customer to any other or further notice or demand in the same, or similar or other circumstances. Any forbearance, failure or delay by Seattle Bank in exercising any right, power or remedy under this Agreement will not be deemed to be a waiver thereof, and any single or partial exercise by Seattle Bank of any right, power or remedy under this Agreement will not preclude the further exercise thereof. Every right, power and remedy of Seattle Bank will continue in full force and effect until specifically waived by Seattle Bank in writing.
Section 6.5 Exceptions to Credit Policy   Customer acknowledges and agrees that no exception to the Credit Policy requested of Seattle Bank by Customer shall be binding upon the Seattle Bank unless (i) approved in writing by the Seattle Bank's authorized representative and (ii) authorized by the Act and Regulations, which may include the manner of authorization..
Section 6.6 Jurisdiction; Legal Fees   In any action or proceeding brought by Seattle Bank or Customer in order to enforce any right or remedy under this Agreement, the parties hereby consent to, and agree that they will submit to, the jurisdiction of the United States District Court for the Western District of Washington, or, if such action or proceeding may not be brought in federal court, the jurisdiction of the courts of King County, Washington. Customer agrees that, if any action or proceeding is brought by Customer seeking to obtain any legal or equitable relief against Seattle Bank under or arising out of this Agreement or any transaction contemplated hereby, and such relief is not granted by the final decision, after any and all appeals, of a court of competent jurisdiction, Customer will pay all attorneys' fees and other costs incurred by Seattle Bank in connection therewith. Customer agrees to reimburse Seattle Bank for all costs and expenses (including reasonable fees and out-of-pocket expenses of counsel for Seattle Bank) incurred by Seattle Bank in connection with (i) the administration, enforcement, interpretation or preservation of Seattle Bank's rights under this Agreement including, but not limited to, its rights in respect of any Collateral or the audit or possession thereof, whether or not an Event of Default has occurred or any suit has been brought, and in any receivership or bankruptcy proceeding and on appeal; (ii) Seattle Bank's rights in any litigation, arbitration or supervisory, receivership, bankruptcy or other insolvency or regulatory proceedings affecting Customer, any Collateral or any Advances, Other Credit Accommodations or Other Obligations, and any appeal of any of the foregoing; or (iii)  Seattle Bank's preparation of additional documentation for Advances, Other Credit Accommodations or Other Obligations or any Collateral, or any amendments, approvals, consents, waivers or releases requested, required, proposed or done from time to time.
Section 6.7 Notices   Except as provided in Subsection 6.8.3 below, any notice, advice, request, consent or direction given, made or withdrawn pursuant to this Agreement must be in writing or by machine-readable electronic transmission, and will be deemed to have been given to and received by a party to this Agreement when received by such party at its address given above by first class mail, or if given by hand or by electronic transmission, when actually received by such party at its principal office.
Section 6.8 Signatures of Customer; Resolution; Oral Requests 
6.8.1    The Secretary or one or more of the Assistant Secretaries of Customer will from time to time certify to Seattle Bank on forms provided by Seattle Bank the names and specimen signatures of the persons authorized to apply on behalf of Customer to Seattle Bank for Advances and otherwise act for and on behalf of Customer in accordance with this Agreement. Such certifications are incorporated in this Agreement and made a part of this Agreement and will continue in effect until expressly revoked by Customer

notwithstanding that subsequent certifications may authorize additional persons to act for and on behalf of Customer.
		
	6.8.2
	Prior to or at the time of the execution and delivery of this Agreement, the Secretary or one or more of the Assistant Secretaries of Customer shall provide the Seattle Bank with a certified copy of a resolution adopted by the Customer's Board of Directors or other governing body (“Resolution”) approving this Agreement and authorizing designated officers or employees of the Customer to obtain Advances and Other Credit Accommodations, open and use Accounts, and incur Other Obligations. The Seattle Bank may rely upon, and the Customer is estopped from denying, the authority of the persons designated in the Resolution or of the persons to whom such authority has been delegated pursuant to the terms of the Resolution.

		
	6.8.3
	Notwithstanding the preceding or any other provision of this Agreement, the Seattle Bank may, but is not obligated to, honor, and Customer shall be bound by, any form of request, including an oral request, for Advances, Other Credit Accommodations or other services from Seattle Bank, whenever such requests are made by persons purporting to act as officers or employees of Customer, if Seattle Bank acts in good faith and with ordinary care (and without liability if it does so act).

Section 6.9 Recording Conversations. Customer for itself and its employees hereby authorizes and consents to Seattle Bank's electronic recording of, transcription of and use of all telephone conversations made by Customer's employees to the Seattle Bank for the purpose of requesting Advances or Other Credit Accommodations. The period of time for which such recordings are stored or whether transcriptions are made shall be determined by Seattle Bank.
Section 6.10 Stock Ownership Requirement   The Seattle Bank and the Customer acknowledge and agree that the Customer is subject to the Member Advance Stock Purchase Requirement and other terms and conditions set forth in the Capital Plan of the Seattle Bank. The Member Advance Stock Purchase Requirement provides that the Customer hold a specified amount capital stock in the Seattle Bank in connection with Advance transactions. Currently, each Customer is required to hold Class B stock with a par value equal to four and one-half percent (4.5%) of the unpaid principal balances of Advances As set forth in the Capital Plan, the Board of Directors of the Seattle Bank may change the above percentage within a range of not less than two and one-half percent (2.5%) or not greater than six  percent (6.0%). The Customer agrees to be bound by any such change in the Member Advance Stock Purchase Requirement percentage. Any such change in the Member Advance Stock Purchase Requirement will be applied as of the implementation date of the change to all new Advances made by the Seattle Bank to the Customer. In addition, the Customer agrees and acknowledges that it will be subject to all amendments to the Capital Plan, that may be made from time to time.
Section 6.11 Force Majeure   Any obligations of the Seattle Bank in connection with this Agreement, any Commitment, or otherwise arising in connection with any Advance, Other Credit Accommodation, Account, Mortgage Purchase Program or other service, shall be excused to the extent delayed or prevented by reason of computer, communications system or power failure, labor disturbances, governmental laws, orders or regulations, riots, insurrection, acts of terror, war or any other causes beyond the reasonable control of the Seattle Bank. In addition, the Seattle Bank shall not be liable for the failure of any wire transfer, fedwire or other such system.
Section 6.12 Limitation of Damages   If Seattle Bank, in connection with this Agreement, any Commitment, or any Advance, Other Credit Accommodation, Account, Mortgage Purchase Program or other service, breaches any obligation of Seattle Bank to Customer not otherwise excused by this Agreement or applicable law, Seattle Bank will be obligated to Customer only for Customer's actual, direct damages, if any. Under no circumstances shall Seattle Bank be liable for, and Customer hereby forever waives, any special, indirect or consequential damages or any punitive or exemplary damages.
Section 6.13 Applicable Law; Severability   In addition to the terms and conditions specifically set forth in this Agreement and any other related documentation, this Agreement, and all Advances granted and Commitments extended under this Agreement, will be governed by the statutory and common law of the United States and, to the extent Federal law incorporates or defers to state law, the laws (exclusive of the choice of law provisions) of the State of Washington. Notwithstanding the foregoing, the UCC of the State of Washington, as amended from time to time, will be deemed applicable to this Agreement and to any Advance or Other Credit Accommodation made or Collateral pledged under this Agreement, except as otherwise required by the provisions of RCW 62A.9A-301 through 307. In the event that any portion of this Agreement conflicts with applicable law, such conflict will not affect other provisions 

of this Agreement that can be given effect without the conflicting provision, and to this end the provisions of this Agreement are declared to be severable.
Section 6.14 Successors and Assigns   This Agreement will be binding upon and inure to the benefit of the successors and permitted assigns of Customer and Seattle Bank.
Section 6.15 Amendment and Restatement of Any Prior Agreement   This Agreement amends and restates the terms of, and is not a novation of, any previous agreements between the parties or their predecessors entitled “Advances, Security and Deposit Agreement,” “Deposit Account Resolution” or “Advances Agreement, Pledge Agreement and Security Agreement.” This Agreement shall not release or impair the priority position of any existing Collateral for any existing Collateral securing any existing Indebtedness.
NOTICE: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, TO EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.
IN WITNESS WHEREOF, Customer and Seattle Bank have caused this Agreement to be signed in their names by their duly authorized officers as of the date first above mentioned.
___________________________________________        
(Full Corporate Name of Customer)
By:        ____________________________________
(Signature of Authorized Officer)

____________________________________
(Name of Authorized Officer)

____________________________________
(Title of Authorized Officer)    

and

By:        ____________________________________
(Signature of Authorized Officer)

____________________________________
(Name of Authorized Officer)

____________________________________
(Title of Authorized Officer)

FEDERAL HOME LOAN BANK OF SEATTLE

By:        _____________________________________
(Signature of Authorized Officer)

_____________________________________
(Name of Authorized Officer)

_____________________________________
(Title of Authorized Officer)

Federal Home Loan Bank of Seattle    Advances, Security and Deposit Agreement 
PAGE 19 OF 19  :  09/12

72301416.2 0053958-00008                   1501 Fourth Ave., Ste. 1800, Seattle, WA 98101-1693   206.340.2300 tel   206.340.2485 fax   www.fhlbsea.com

Advances, Security and Deposit Agreement 
PAGE 1 OF 1  :  09/12
72301416.2 0053958-00008 CORPORATE ACKNOWLEDGMENT

STATE OF    ___________________        )
(State Where Signed)
) ss.

COUNTY OF                        )
(County Where Signed) 
        
I certify that I know or have satisfactory evidence that __________________________    _____ is the 
(Name of Authorized Officer of Customer)
person who appeared before me, and said person acknowledged that [he/she] signed this instrument, on oath stated

 that [he/she] was authorized to execute the instrument and acknowledge it as the ________           ________ of
  (Title of Authorized Officer)
 ______                        _________ to be the free and voluntary act of such party for the uses and purposes 
(Full Corporate Name of Customer)
mentioned in the instrument.
	
		
	_________________________________________
	(Signature of Notary)

	(Date of Notary Acknowledgement)
	(Please print notary's name legibly)

	_________________________________________
	NOTARY PUBLIC in and for the State of __________, residing at _______          ___________.  
                   (City Where Notary Resides)
My commission expires: _________________.

(Include notary seal in space above this line.)

CORPORATE ACKNOWLEDGMENT
STATE OF                                )
(State Where Signed)
) ss.
COUNTY OF                    ) 
(County Where Signed)

I certify that I know or have satisfactory evidence that __________________    _       ___   _____ is the                                (Name of Authorized Officer of Customer)
person who appeared before me, and said person acknowledged that [he/she] signed this instrument, on oath stated 

that [he/she] was authorized to execute the instrument and acknowledge it as the ________          ________ of
 (Title of Authorized Officer)
 ________        ______ to be the free and voluntary act of such party for the uses and purposes
(Full Corporate Name of Customer) 
mentioned in the instrument.

	
		
	_________________________________________
	(Signature of Notary)

	(Date of Notary Acknowledgment)
	(Please print notary's name legibly)

	__________________________________________
	NOTARY PUBLIC in and for the State of __________, residing at _______           ___________.  
                   (City Where Notary Resides)
My commission expires: _________________.

(Include notary Seal in space above this line.)RI Q4 2012 Exhibit 10.14

Exhibit 10.14

FIRST AMENDMENT TO AGREEMENT FOR SALE OF MEMBERSHIP INTERESTS
THIS FIRST AMENDMENT TO AGREEMENT FOR SALE OF MEMBERSHIP INTEREST (this “First Amendment”) is made as of the 6th day of November,  2012, by and between KBS ACQUISITION SUB-OWNER 2, LLC, a Delaware limited liability company (“Seller”), and GPT GIG BOA Portfolio Holdings LLC, a Delaware limited liability company (f/k/a BBD1 Holdings LLC) (“Company”).  In consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows:
RECITALS
A.    The Seller and the Company are parties to that certain Agreement for Sale of Membership Interests dated as of August 17, 2012 (the “Purchase Agreement”).  All initially-capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement unless the context clearly indicates otherwise.
B.    Pursuant to the Purchase Agreement, the Seller was to sell the Property and the Defeasance Security through the transfer of the Interests to the Company.
C.    Pursuant to Section 4.3.2(c) of the Purchase Agreement, the Seller is obligated to cooperate with the Company in connection with the acquisition of New Mortgage Debt, subject to the provisions and limitations set forth in the Purchase Agreement.
D.    The New Mortgage Lender has requested to restructure certain aspects of the sale of the Property and the Defeasance Security.
E.    The Company has requested that certain properties commonly known as 231 S. La Salle Street, Chicago, Illinois (the “231 Property”) and 525 N. Tryon Street, Charlotte, North Carolina (the “525 Property”), be sold by Portfolio Property Owner directly to third parties.
F.    Concurrently herewith, the Seller and the Company, among others, are entering into that certain Closing Agreement (the “Closing Agreement”) which, among other matters, sets forth the procedure, timing, documentation and deliveries that are necessary in order to consummate the restructured consummation of the purchase and sale of the Property and the Defeasance Security.  A photocopy of the Closing Agreement is attached hereto as Exhibit B.
G.    Seller and Company have agreed to modify the terms of the Purchase Agreement as set forth in this First Amendment.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intended to be legally bound, Seller and Company agree as follows:
1.    Recitals.    The Recitals set forth above hereby incorporated herein by reference as if the same were fully set forth herein.
2.    Exhibits.    Exhibit A-1 to the Purchase Agreement is hereby deleted in its entirety and replaced with Exhibit A-1 attached hereto.

3.    Restructuring of Purchase and Sale.    The purchase and sale of the Interests shall be restructured as:
(a)    a transfer of the Parking Lot Property by the Parking Lot Property Owner to the HFS Property Owner (as defined in the Closing Agreement),
(b)    a transfer of the Held-for-Sale Properties (as defined in the Closing Agreement) by Portfolio Property Owner to the HFS Property Owner (as defined in the Closing Agreement),
(c)    a transfer of the 231 Property by Portfolio Property Owner to the Chicago Property Purchaser (as defined in the Closing Agreement),
(d)    a transfer to the 525 Property by Portfolio Property Owner to the Charlotte Property Purchaser (as defined in the Closing Agreement),
(e)    a transfer of the Finance Properties (as defined in the Closing Agreement) from Portfolio Property Owner to JPM Property Owner (as defined in the Closing Agreement), 
(f)    the assignment by Seller to JV Buyer (as defined in the Closing Agreement) of the membership interests in JPM Property Owner (immediately after the transfer of the Finance Properties set forth in clause (e) above), and 
(g)    the assignment by Seller to Defeasance Pool Assignee (as defined in the Closing Agreement) of the membership interests in Portfolio Property Owner (immediately after the transfer of the Held-for-Sale Properties set forth in clause (b) above), AFR DEfeasance Pool 1, LLC and GKK Independence Square Lot LLC.
4.    Documentation Deliveries.
(a)    The parties hereby agree that, in addition to the deliveries required under the Purchase Agreement, each shall deliver, or cause to be delivered, the following documents to which it or its Affiliate are a party:
(i)    The documents listed on Exhibit C attached to the Closing Agreement (relating to clauses (a),  (b) and (e) of Section 3 hereof),
(ii)    The documents listed on Exhibit E attached to the Closing Agreement (relating to the repayment of the Mezz Loan),
(iii)    The documents listed on Exhibit H attached to the Closing Agreement (relating to Section 3(c) hereof).
(iv)    The documents listed on Exhibit I attached to the Closing Agreement (relating to Section 3(d) hereof).
(b)    The parties confirm that they have modified the Assignment, the Updated Certificate, the Stockholder Agreement (and related letter agreement) and the Indemnity 

2

Agreement to their mutual satisfaction to reflect the assignment of the membership interests referred to in clauses (f) and (g) of Section 3 hereof and/or this First Amendment.  In addition, the parties confirm that (i) the Amendments in Section 6.1(b) of the Purchase Agreement and (ii) the Mezz Loan Assignment Documents, shall not be required to be delivered.
5.    Operating Expenses.    The parties hereby agree that, notwithstanding the terms of the Purchase Agreement (including, without limitation, Section 10.2 if the Purchase Agreement), Operating Costs that are payable by tenants with directly or reimbursable under Leases and are subject to a future reconciliation (“Open Operating Expenses”) shall not be prorated as of Closing.  Rather, the Company shall cause to be conducted a reconciliation of Open Operating Expenses within three months of the Closing Date.  If, as a result of such reconciliation of Open Operating Expenses, as of the Closing the Seller has directly or indirectly received additional rent payments in excess of the amounts that tenants would be required to pay based on the actual Operating Expenses, the Company shall receive a credit in the amount of such excess.  If, as a result of such reconciliation of Open Operating Expenses, as of the Closing the Seller has directly or indirectly received additional rent payments that are less than the amounts that tenants would be required to pay based on the actual Operating Expenses, the Seller shall receive a credit in the amount of such shortfall.  Neither the Seller or the Company shall have any obligation to any payment for amount due and owing under this Section 5 until such amounts have been collected and received from the applicable tenants.  
6.    Limited Release.    The Company acknowledges that in order to effectuate the restructured transactions referred to in this First Amendment it has prepared, or has caused to be prepared, certain closing documentation to be executed and/or delivered by Seller or an Affiliate of Seller.  Accordingly, the Seller makes no representation, covenant or warranty as to the accuracy or effectiveness of, and shall not be liable to the Company for any inaccuracies or errors in, any bill of sale, deed or assignment of lease comprising Internal KBS Transfer Documents (as defined in the Closing Agreements)(collectively, the “Company Prepared Documents”).
7.    Further Assurances.    Seller and Company hereby agree to perform, execute and deliver, or cause to be performed, executed and delivered, on the Closing Date or thereafter any and all such further acts, deeds and assurances as Company or Seller, as the case may be, may reasonably require in order to (i) effectuate the return to Seller of the Reserves and (ii) consummate fully the transactions contemplated under this First Amendment including, without limitation, such documents as may be reasonably required in order to effectuate the return to Seller of the Reserves and the restructured transactions referred to in this First Amendment or to correct any errors, inaccuracies or fully effectuate any of the Company Prepared Documents.
8.    Effectiveness of Agreement.    Except as modified by this First Amendment, all the terms of the Purchase Agreement including, without limitation, the rights and the obligations of the parties thereunder, shall remain unchanged and in full force and effect.
9.    Counterparts.    This First Amendment may be executed in counterparts, and all counterparts together shall be construed as one document.

3

10.    Telecopied Signatures.    A counterpart of this First Amendment that is signed by one party to this First Amendment and telecopied to the other party to this First Amendment or its counsel (o) shall have the same effect as an original signed counterpart of this First Amendment, and (ii) shall be conclusive proof, admissible in judicial proceedings, of such party’s execution of this First Amendment.
11.    Successors and Assigns.    All of the terms and conditions of this First Amendment shall apply to benefit and bind the successors and assigns of the respective parties.
IN WITNESS WHEREOF, Seller and Company have entered into this First Amendment to Agreement for Sale of Membership Interests as of the date first above stated.
[SIGNATURES ON NEXT PAGE]

4

“SELLER”
KBS ACQUISITION SUB-OWNER 2, LLC,
a Delaware limited liability company

By:    KBS ACQUISITION SUB, LLC,
a Delaware limited liability company,
its sole member

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

[First Amendment to PSA]

“COMPANY”

GPT GIG BOA PORTFOLIO HOLDINGS LLC,
a Delaware limited liability company

By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

[FIRST AMENDMENT TO AGREEMENT FOR SALE OF MEMBERSHIP INTERESTS]

JOINDER BY CERTAIN COMPANY PARTIES
The undersigned are executing this Joinder solely for the purpose of acknowledging and agreeing to the releases granted in Section 6 of this Amendment, which this Joinder shall be effective immediately after the consummation of the transactions referenced in Section 3 of this Amendment.

GPT GIG BOA PORTFOLIO OWNER LLC,
a Delaware limited liability company
By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

GPT GIG BOA PORTFOLIO HFS OWNER LLC,
a Delaware limited liability company
By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

GPT GIG BOA DEFEASANCE POOL HOLDINGS LLC,
a Delaware limited liability company
By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

FIRST STATES INVESTORS 5000A LLC,
a Delaware limited liability company
By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

[Joinder Signatures Continue on Next Page]

[FIRST AMENDMENT TO AGREEMENT FOR SALE OF MEMBERSHIP INTERESTS]

GKK INDEPENDENCE SQUARE LOT, LLC,
a Delaware limited liability company
By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

AFR DEFEASANCE POOL 1, LLC,
a Delaware limited liability company
By:    /s/ Benjamin P. Harris
Name:    Benjamin P. Harris
Title:    Authorized Signatory

[FIRST AMENDMENT TO AGREEMENT FOR SALE OF MEMBERSHIP INTERESTS]

EXHIBIT A-1

Portfolio Real Property

	
			
	No.
	Property Number/Name
	Property Address

	I.
	ARIZONA (7 Properties)

	1.
	5003- Camelback Uptown-Mn, Phoenix, AZ
	51 E. Camelback Road, Phoenix, AZ 85012

	2.
	5004- Camelback-Bank Am, Phoenix, AZ
	1825 E. Buckeye Road, Phoenix, AZ 85034

	3.
	5005- Catalina-Bank Am, Phoenix, AZ
	1825 E. Buckeye Road, Phoenix, AZ 85034

	4.
	5006- Maricopa- Bank Ami, Phoenix, AZ
	1825 E. Buckeye Road, Phoenix, AZ 85034

	5.
	5007- McDowell- Bank Ame, Phoenix, AZ
	1825 E. Buckeye Road, Phoenix, AZ 85034

	6.
	5008- Mesa Main- Mn Bldr, Mesa, AZ
	63 W. Main Street, Mesa, AZ 85201

	7.
	5009- South Mountain, Phoenix, AZ
	1825 E. Buckeye Road, Phoenix, AZ 85034

	II.
	CALIFORNIA (40 Properties)

	8.
	5010- Auburn, CA
	900 High Street, Auburn, CA 95603

	9.
	5011- Bixby-Atlantic, Long Beach, CA
	3804 Atlantic Avenue, Long Beach, CA 90801

	10.
	5012- Calwa, Fresno, CA
	2611 S. Cedar Avenue, Fresno, CA 93725

	11.
	5013- Cedar & Shields, Fresno, CA
	3435 N. Cedar Avenue, Fresno, CA 93726

	12.
	5014- Coronado Branch, Coronado, CA
	1199 Orange Avenue, Coronado, CA 92118

	13.
	5015- East Baskerfield, Bakersfield, CA
	1201 Baker Street, Bakersfield, CA 93305

	14.
	5016- East Compton Branch Compton, CA
	518 S. Long Beach Boulevard, Compton, CA 9022

	15.
	5017- El Segundo, CA
	1835 N. Sepulveda Boulevard, El Segundo, CA 90245

	16.
	5021- Escondido Main, CA
	220 S. Escondido Blvd., Escondido, CA 92025

	17.
	5022- Fresno Proof/Vault, CA
	2111 Tuolumne Street, Fresno, CA 93721

	
			
	No.
	Property Number/Name
	Property Address

	18.
	523- Gardena Main, CA
	1450 W. Redondo Beach Blvd., Gardena, CA 90247

	19.
	5024- Glendale Main, CA
	345 N. Brand Blvd., Glendale, CA 91203

	20.
	5025- Inglewood Main, CA
	330 E. Manchester Blvd., Inglewood, CA 90301

	21.
	5026- Inland Empire Cash, Ontario, CA [SP]
	1275 S. Dupont Avenue, Ontario, CA 91761

	22.
	5027- Irvine Industrial, Newport Beach, CA 
	4101 Mac Arthur Blvd., Newport Beach, CA 92660

	23.
	5030- Lincoln Heights, Los Angeles, CA
	2400 N. Broadway, Los Angeles, CA 90031

	24.
	5031- Long Beach Financial, CA [SP]
	150 Long Beach Blvd., Long Beach, CA 90802

	25.
	5032- Lynwood Branch, Lynwood, CA
	3505 E. Imperial Highway, Lynwood, CA 90262

	26.
	5034- North Hollywood, CA
	5025 Lankershim Blvd., North Hollywood, CA 91601

	27.
	5035- North Sacramento, Sacramento, CA
	1830 Del Paso Blvd., Sacramento, CA 95815

	28.
	5036- Oak Park Branch, Sacramento, CA
	3810 Broadway, Sacramento, CA 95817

	29.
	5037- Palmdale Branch, Palmdale, CA
	839 E. Palmdale Blvd., Palmdale, CA 93550

	30.
	5038- Pico-Vermont Branch, Los Angeles, CA
	1232 S. Vermont Blvd., Los Angeles, CA  90006

	31.
	5039- Poma Main, Pomona, CA
	444 S. Garey Avenue, Pomona, CA 91766

	32.
	5040- Red Bluff Branch, Red Bluff, CA
	955 Main Street, Red Bluff, CA 96080

	33.
	5041- Redding Main Branch, Redding, CA
	1661 East Street, Redding, CA 96001

	34.
	5042- Riverside Main, Riverside, CA
	3650 14th Streetm Riverside, CA 92501

	35.
	5043- Salinas Main Branch, Salinas, CA
	405 Main Streetm Salinas, CA 93901

	36.
	5044- San Bernardino Main, CA
	303 N. D Street, San Bernardino, CA 92401

	37.
	5045- Santa Barbara, CA
	834 State Street, Santa Barbra, CA 93101

	38.
	5046- Santa Maria Branch, CA
	300 Town Center East, Santa Maria, CA 93454

	
			
	No.
	Property Number/Name
	Property Address

	39.
	5047- Sepulveda, Mission Hills, CA
	10300-10306 Sepulveda Blvd., Mission Hills, CA 91345

	40.
	5048- Stockdale-Main, Bakersfield, CA
	5021 California Avenue, Bakersfield, CA 93309

	41.
	5049-Stockton Main Office, CA [SP]
	5021 California Avenue, Bakersfield, CA

	42.
	5050- Sunnyvale Main, CA
	444 S. Mathilda Avenue, Sunnyvale, CA 94086

	43.
	5051- Torrance Sartori, CA
	1255 Sartori Avenue, Torrance, CA 90501

	44.
	5053- Ventura Main Office, CA
	1130 S. Victoria, Ventura, CA 93003

	45.
	5054- Whittier Office, CA
	7255 S. Greenleaf Avenue, Whittier, CA 90602

	46.
	5055- Willow-Daisy Brch, Long Beach, CA
	600 W. Willow Street, Long Beach, CA 90806

	47.
	5056- Yuba City Branch, Yuba City, CA
	1100 Butte House Road, Yuba City, CA 95991

	III.
	FLORIDA (24 Properties)

	48.
	5057- Century Park, Tampa, FL
	1000 Century Park Road, Tampa, FL 33607

	49.
	5058- Clermont- Main Building, FL
	690 E. Highway 50, Clermont, FL 34711

	50.
	5059- Cordova, Pensacola, FL [SP]
	5041 Bayou Blvd., Pensacola, FL 32503

	51.
	5062- Gulf to Bay- Main, Clearwater, FL
	164 Gulf to Bay Blvd., Clearwater, FL 33755

	52.
	5063- Hallendale Beach, FL [SP]
	801 E. Hallandale Blvd., Hallandale, FL 33009

	53.
	5064- Jacksonville #100, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	54.
	5065- Jacksonville #200, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	55.
	5066- Jacksonville #300, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	56.
	5067- Jacksonville #4, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	57.
	5068- Jacksonville #5, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	58.
	5069- Jacksonville #6, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	59.
	5070- Jacksonville #7, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	
			
	No.
	Property Number/Name
	Property Address

	60.
	5071- Jacksonville Daycr, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	61.
	5072- Jacksonville Garag, FL
	9000 Southside Blvd., Jacksonville, FL 32256

	62.
	5073- Jacksonville Schl FL
	9000 Southside Blvd., Jacksonville, FL 32256

	63.
	5074- Lighthouse Point, FL [SP]
	2850 N. Federal Highway, LighthousePoint, FL 33064

	64.
	5078- North Hialeah- Main Building, FL
	1 E. 49th Street, Hialeah, FL 33013

	65.
	5079- Ocala Downtown, Ocala, FL [SP]
	35 S.E. 1st Avenue, Ocala, FL 34471

	66.
	5080- Plaza, Stuart, FL
	900 S. Federal Highway, Stuart, FL 34994

	67.
	5081- Port Charlotte-Main Building, , FL
	21175 Ocean Blvd., Port Charlotte, FL 33952

	68.
	5083- San Jose- Main, Jacksonville, FL
	3535 University Blvd. West, Jacksonville, FL 32217

	69.
	5084- South Region TPC, Miami Lakes, FL
	17100 N.W. 59th Avenue, Miami Lakes, FL 33015

	70.
	5086- Westshore Mall, Tampa, FL
	100 N. Westshore Blvd., Tampa, FL 33609

	71.
	5088 - Winter Park, Winter Park, FL
	750 S. Orlando Avenue, Winter Park, FL 32789

	IV.
	GEORGIA (4 Properties)

	72.
	5091- Bull Street, Savannah, GA
	22 Bull Street, Savannah, GA 31401

	73.
	5095- Valdosta Main, GA [SP]
	106 S. Paterson Street, Valdosta, GA 31601

	74.
	5096- Winder Main Building, GA [SP]
	102 N. Broad Street, Winder, GA 30680

	75.
	5094- Moultrie Main, Moultrie, GA [HFS]
	300 S. Main Street, Moultrie, GA 31768

	V.
	ILLINOIS (1 Property)

	76.
	5098- Bank of America, Chicago, IL
	231 S. La Salle Street, Chicago, IL 60604

	VI.
	KANSAS (2 Properties)

	77.
	5099- Mission, Overland Park, KS [SP]
	9500 Mission Road, Overland Park, KS 66206

	78.
	5100- Penn St., Independence, KS [SP]
	01 N. Penn Street, Independence, KS 67301

	
			
	No.
	Property Number/Name
	Property Address

	VII.
	MARYLAND (2 Properties)

	79.
	5101- Annapolis Church, MD
	10 Church Circle, Annapolis, MD 21402

	80.
	5102- Highlandtown, Baltimore, MD
	3415-3417 Eastern Avenue, Baltimore, MD 21224

	VIII.
	MISSOURI (12 Properties)

	81.
	5103- Columbia Facility-Main Building, MO
	800 Cherry Street, Columbia, MO 65201

	82.
	5104- Concord Village, St. Louis, MO
	5353 S. Lindbergh Blvd., St. Louis, MO 63126

	83.
	5105- Downtown Facility, Rolla, MO [SP]
	210 W. 8th Street, Rolla, MO 65401

	84.
	5106- Florissant Facility, MO [SP]
	880 Rue Saint Francois, Florissant, MO 63031

	85.
	5107- Hampton-Main, St. Louis, MO
	4301 Hampton Avenue, St. Louis, MO 63109

	86.
	5108- Independence Square, MO [SP]
	129 W. Lexington Avenue, Independence, MO 64050

	87.
	5109- Lexington Facility-Main, MO [SP]
	1016 Main Street, Lexington, MO 64607

	88.
	5110- Mexico Facility, Mexico, MO [HFS]
	222 S. Jefferson Street, Mexico, MO 65265

	89.
	5111- Oak Traffic, N. Kansas City, MO [SP]
	8320 N. Oak Trafficway, N. Kansas City, MO 64118

	90.
	5112- Richland Facility-Main Building, MO
	112 McClurg Street, Richland, MO 65556

	91.
	5113- South Glenstone- Main, Springfield, MO
	2940 S. Glenstone Avenue, Springfield, MO 65804

	92.
	5114- West Sunshine-Main, Springfield, MO
	710 W. Sunshine Street, Springfield, MO 65807

	IX.
	NORTH CAROLINA (1 Property)

	93.
	5116- 525 N Tryon-Odell, Charlotte, NC
	525 N. Tryon Street, Charlotte, NC 28202

	X.
	NEW MEXICO (1 Property)

	94.
	5117- Albuquerque Op Ctrm NM [SP]
	725 6th Street N.W., Albuquerque, NM 87102

	XI.
	OKLAHOMA (2 Properties)

	
			
	No.
	Property Number/Name
	Property Address

	95.
	5121- Admiral- Main Building, Tulsa, OK [SP]
	5950 E. Admiral Place, Tulsa, OK 74115

	96.
	5122- Muskogee Main, Muskogee, OK [SP]
	230 W. Broadway, Muskogee, OK 74401

	XII.
	SOUTH CAROLINA (1 Property)

	97.
	5123- Aiken Main Office, Aiken, SC [SP]
	167 Laurens Street, Aiken, SC 29801

	XIII.
	TENNESSEE (1 Property)

	98.
	5124- Murfreesboro Main, TN [SP]
	120 E. Main Street, Murfeesboro, TN 37130

	XIV.
	TEXAS (10 Properties)

	99.
	5126-Aransas Pass, TX [HFS]
	221 S. Commercial Street, Aransas Pass, TX 78336

	100.
	5127- Brownwood- Main Building, TX [HFS]
	1 Center Avenue, Brownwood, TX 76801

	101.
	5128-Carrollton-Mn Building, TX
	1101 S. Josey Lane, Carrollton, TX 75006

	102.
	5130- Denison, TX [HFS]
	300 W. Main Street, Denison, TX 75020

	103.
	5131- Dumas Banking- Main, TX [HFS]
	501 N. Bliss Avenue, Dumas, TX 79029

	104.
	5132- Fort Sam Hston-Main, San Antonio, TX
	1422 E. Grayson Street, San Antonio, TX 78208

	105.
	5133- Fort Worth East- Main, TX [HFS]
	5651 E. Lancaster Avenue, Fort Worth, TX 76112

	106.
	5134- Greenspoint, Houston, TX
	12400 Interstate 45 North, Houston, TX 77060

	107.
	5135- Mission Main Building, Mission, TX
	1101 N. Conway Avenue, Mission, TX 78572

	108.
	5136- Mount Pleasant, TX [HFS]
	302 N. Jefferson Avenue, Mt. Pleasant, TX 75455

	XV.
	VIRGINIA (1 Property)

	109.
	5142- Old Hampton, Hampton, VA [SP]
	1 W. Queens Way, Hampton, VA 23669

	XVI.
	WASHINTON (1 Property)

	110.
	5145- Aberdeen Building/BR, WA
	101 E. Market Street, Aberdeen, WA 98520

	
			
	No.
	Property Number/Name
	Property Address

	111.
	5148- Bellingham, WA
	112 E. Holly Street, Bellingham, WA 98255

	112.
	5149- Bremerton, WA
	1000 6th Street, Bremerton, WA 98337

	113.
	5155- Richland-Main Building, WA
	1007 Knight Street, Richland, WA 99352

	114.
	5156- Spokane Bankcard, WA
	1616 S. Rustle Road, Spokane, WA 99224

	115.
	5158- Walla Walla Main Building, WA
	111 W. Main Street, Walla Walla, WA 99362

EXHIBIT B

Closing Agreement

[see attached]

Execution

CLOSING AGREEMENT

KBS ACQUISITION SUB-OWNER 2, LLC
 (“KBS SELLER”)

GPT GIG BOA PORTFOLIO HOLDINGS LLC
 (“JV BUYER”)
GPT GIG BOA PORTFOLIO HFS OWNER LLC
 (“HFS PROPERTY OWNER”)
GPT GIG BOA PORTFOLIO OWNER LLC
 (“BORROWER / JPM PROPERTY OWNER”)
GPT GIG BOA DEFEASANCE POOL HOLDINGS LLC
 (“DEFEASANCE POOL ASSIGNEE”)
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
 (“NEW LENDER”)
KBS REIT PROPERTIES, LLC, KBS ACQUISITION SUB-OWNER 5, LLC, KBS ACQUISITION SUB-OWNER 6, LLC, KBS ACQUISITION SUB-OWNER 7, LLC and KBS ACQUISITION SUB-OWNER 8, LLC
 (individually and collectively “KBS MEZZ BORROWER”)
GRAMERCY LOAN SERVICES LLC,
 GRAMERCY INVESTMENT TRUST and
GARRISON COMMERCIAL FUNDING XI LLC
 (“MEZZANINE LENDER PARTIES”)
FIRST AMERICAN TITLE INSURANCE COMPANY
 (“TITLE COMPANY / ESCROW AGENT”)

CLOSING AGREEMENT
THIS CLOSING AGREEMENT (this “Closing Agreement”) dated as of December 6, 2012, (the “Effective Date”) together with its exhibits, contains the agreement of the undersigned parties (individually, a “Party”, and collectively, the “Parties”) to consummate the transactions described herein and in connection therewith for the Escrow Agent: (i) to issue the policies of title insurance as more fully set forth herein, (ii) to act as document escrow agent in respect of the Transactions (as hereinafter defined) and (iii) to act as funds escrow agent for the Transactions.  
A. Overview of Transactions
Upon satisfaction of the conditions set forth herein, the following transactions shall be effectuated concurrently on December 6, 2012 (the “Closing Date”) but will be deemed to occur in the order set forth below (individually, each a “Transaction”, and collectively, the “Transactions”):
1.Internal KBS Transfer.  The transfer (the “Internal KBS Transfer”) by KBS Seller of sixty-seven (67) real properties set forth on Exhibit A (the “Finance Properties”) by deed from First States Investors 5000A, LLC (“First States Investors 5000A”) to Borrower, a wholly-owned subsidiary of KBS Seller.
2.Defeasance.  Defeasance of First States Investors 5000A, LLC Loan Nos. 99-1088305, 99-1088340, 99-1088341, 99-1088342, 99-1088351, 99-1089958 and 99-1089959, involving the defeasance (the “Defeasance Transaction”) of the collateral pledged by First States Investors 5000A in connection with a loan to First States Investors 5000A in the original principal amount of $400,000,000.00 (the “First States Loan”) pursuant to the terms and conditions of that certain Loan and Security Agreement, dated as of June 30, 2003, between First States Investors 5000A and German American Capital Corporation.  U.S. Bank National Association, as Successor Trustee to Bank of America, National Association, as Trustee, successor by merger to LaSalle Bank National Association, as trustee for GMAC Commercial Mortgage Securities, Inc., Mortgage Pass-Through Certificates, Series 2003-C3, is acting for the benefit of the holders of the Notes issued in connection with the First States Loan in accordance with the applicable intercreditor agreements.  Wells Fargo Bank, N.A. (“Securities Intermediary”) is acting as securities intermediary for the defeasance of the First States Loan.
3.Chicago Sale Transaction.  The sale (the “Chicago Sale Transaction”) by KBS Seller of the real property commonly known as 231 South LaSalle Street, Chicago, Illinois (the “Chicago Property”) to SL 231 LaSalle LLC (the "Chicago Property Purchaser") pursuant to the terms and conditions of a Purchase and Sale Agreement (the “Chicago Purchase Agreement”) between KBS Seller and the Chicago Property Purchaser.
4.Charlotte Sale Transaction.  The sale (the “Charlotte Sale Transaction”) by KBS Seller of the real property commonly known as 525 North Tryon Street, Charlotte, North Carolina (the “Charlotte Property”) to Parkway Properties LP (the "Charlotte Property Purchaser") pursuant to the terms and conditions of a Purchase and Sale Agreement (the “Charlotte Purchase Agreement”) between KBS Seller and the Charlotte Property Purchaser.

2

5.Mezzanine Loan Repayment.  The repayment (the “Mezzanine Loan Repayment”) of the mezzanine loan made to KBS Mezz Borrower in the original principal amount of $38,980,245.08 pursuant to the terms and conditions of the Mezzanine Loan Agreement, dated August 17, 2012 (the “Mezzanine Loan Agreement”), between KBS Mezz Borrower and the Mezzanine Lender Parties (the full payoff amount in respect thereof, the “Mezzanine Loan Repayment Amount”).
6.JV Acquisition Transaction.
(a)The transfer by deed to HFS Property Owner of (i) forty-six (46) real properties set forth on Exhibit B (the “Held-for-Sale Properties”) from First States Investors 5000A and (ii) the parking lot property set forth on Exhibit B from GKK Independence Square Lot LLC (the “Parking Lot Owner”);
(b)The assignment by KBS Seller to JV Buyer of the membership interests in (i) Borrower/JPM Property Owner (“Membership Interest Transfer”); and  
(c)The assignment by KBS Seller to Defeasance Pool Assignee of the membership interests in (i) First States Investors 5000A (after transfer of the Held-for-Sale Properties pursuant to Paragraph A.6(a) above), (ii) the Parking Lot Owner and (iii) AFR Defeasance Pool 1, LLC (the “Defeasance Securities Owner”).
The foregoing transactions in this Paragraph A.6 are collectively referred to as the “JV Acquisition Transaction”.
7.New Loan Transaction.  The mortgage loan made to Borrower from New Lender in the original principal amount of $200,000,000.00 (the “Mortgage Loan”) pursuant to the terms of the Loan Agreement, dated as of the Closing Date, between Borrower and New Lender (the “New Loan Transaction”).
B. Receipt of Transaction Documents
By execution and delivery of this Closing Agreement, on the Effective Date, (x) each Party represents and agrees that it has executed and delivered to Escrow Agent the applicable documents listed below in respect of each Transaction to which it is a party, and (y) Escrow Agent represents and agrees that it has received the following documents (the “Transaction Documents”):
1.The documents listed on Exhibit C attached hereto relating to the Internal KBS Transfer (the “Internal KBS Transfer Documents”).
2.The documents listed on Exhibit E attached hereto evidencing the repayment of the Mezzanine Loan (the “Mezzanine Loan Repayment Documents”).
3.The documents listed on Exhibit F attached hereto relating to the JV Acquisition Transaction (the “JV Acquisition Closing Documents”).

3

4.The documents listed on Exhibit G relating to the New Loan Transaction (the “New Loan Closing Documents”; and together with the Internal KBS Transfer Documents, the Defeasance Closing Documents, the Mezzanine Loan Repayment Documents and the JV Acquisition Closing Documents, collectively, the “Closing Documents”).
In addition to the Closing Documents, Escrow Agent represents and agrees that pursuant to separate written closing and escrow instructions it has received and is holding (i) certain documents listed on Exhibit D relating to the Defeasance Transaction (the “Defeasance Closing Documents”), (ii) certain documents listed on Exhibit H relating to the Chicago Sale Transaction (the “Chicago Sale Closing Documents”) and (iii) certain documents listed on Exhibit I relating to the Charlotte Sale Transaction (the “Charlotte Sale Closing Documents”).  
C. Escrow Agent Confirmation
By execution and delivery of this Closing Agreement, Escrow Agent represents and agrees as follows:
5.Escrow Agent has confirmed that (i) it has received evidence of a trade confirmation from the Securities Intermediary with respect to the delivery of United States government securities set forth on Exhibit J (the “Defeasance Collateral”), subject to payment for the Defeasance Collateral in the amount (the “Defeasance Collateral Purchase Price”) identified as “Due to Securities Intermediary” on Exhibit N attached hereto (the “Closing Statement”).
6.Escrow Agent has confirmed that the Closing Documents, as well as the Chicago Sale Closing Documents and the Charlotte Sale Closing Documents, are fully and properly signed, dated, acknowledged, attested and witnessed, as required by law, and that those among them that are to be filed and/or recorded in the public records are in proper form for filing and/or recording, as applicable, and include complete and accurate property descriptions and all other exhibits that are necessary for filing and/or recording.
7.Escrow Agent has confirmed that all title matters and information required in connection with the Transactions have been confirmed to the date hereof.  Subject to receipt of the Title Charges (defined in Paragraph C.4 below), Title Company is unconditionally prepared to issue, and hereby irrevocably commits to issue, the following title insurance policies in the form of the marked pro forma policies issued on or prior to the date hereof (collectively, the “Policies”):
(a)To HFS Property Owner, ALTA owner's policies of title insurance dated as of the recording date of each applicable deed insuring the ownership of each of the Held-for Sale Properties for the insured amounts indicated on Exhibit K (each, a “HFS Property Owner's Policy” ).
(b)To JPM Property Owner, ALTA owner's policies of title insurance dated as of the recording date of each applicable deed insuring the ownership of each of the Finance Properties for the insured amounts indicated on Exhibit L (each, a “JPM Property Owner's Policy” ).

4

(c)To New Lender, ALTA loan policies of title insurance dated as of the recording date of each applicable security instrument insuring the priority of the lien of New Lender encumbering each of the Finance Properties for the insured amount indicated on Exhibit M  (each, a “New Lender's Mortgage Loan Policy”). Escrow Agent agrees that it will separately confirm with New Lender's counsel the form of each New Lender's Mortgage Loan Policy and all of the endorsements attached thereto prior to the Closing Date and irrevocably agrees that each New Lender's Mortgage Loan Policy and all of the endorsements attached thereto shall be in the form agreed to between Escrow Agent and New Lender's counsel.
8.The issuance of the foregoing Policies is subject to receipt by Escrow Agent of certain amounts indicated on the Closing Statement, which amounts, Escrow Agent has determined will fully pay for (i) all documentary, recording, filing and related taxes and charges and other expenses of the Title Company in connection with the Closing Documents, (ii) amounts required to be paid to the KBS Seller and third parties to cause the state of title to be as described in each of the Policies, as applicable, (iii) the premiums payable to the Title Company for the issuance of the Policies, in addition to the other charges and reimbursements shown on the Closing Statement as being payable to Escrow Agent (collectively, the “Title Charges”), and (iv) the amounts that are required to be paid to close the Defeasance Transaction.  
9.Escrow Agent has confirmed receipt from Chicago Property Purchaser on the Effective Date of the sum of $94,720,334.07 (the “Chicago Property Purchaser's Funds”) in its segregated escrow account described on Exhibit O hereto (the “Escrow Account”).
10.Escrow Agent hereby confirms receipt from Charlotte Property Purchaser on the Effective Date of the sum of $45,801,034.86 (“Charlotte Property Purchaser's Funds”) in the Escrow Account.
11.Escrow Agent hereby confirms receipt from Borrower on the Effective Date of the sum of $102,911,840.31 (“Borrower Funds”), in the Escrow Account.
D. Closing Date Events
12.On the Closing Date, upon telephonic confirmation from each of the Parties, as well as the Chicago Property Purchaser and the Charlotte Property Purchaser, that each such party has authorized the Escrow Agent to close, New Lender will wire to the New York, New York office of Escrow Agent pursuant to the wiring instructions described on the Closing Statement the net loan proceeds after payment of certain Borrower costs, and identified as “Due to Title Company” on the Closing Statement (the “New Lender's Funds”; and together with the Chicago Property Purchaser's Funds, the Charlotte Property Purchaser's Funds, and the Borrower Funds, the “Closing Funds”), and Borrower agrees with New Lender that New Lender's Funds, when so wired by New Lender, will be regarded for all purposes under the applicable New Loan Closing Documents as having been advanced directly to Borrower, and Borrower shall pay all interest and other payments with respect to such amounts from the date the same are wired that are required pursuant to the New Loan Closing Documents. 
13.Upon receipt by Escrow Agent of the New Lender's Funds, the Parties irrevocably instruct Escrow Agent, and Escrow Agent agrees, to disburse (i) the Defeasance 

5

Collateral Purchase Price to the Securities Intermediary, in accordance with the Closing Statement and (ii) the remaining Closing Funds as follows:
(a)To  pay the invoices identified under the heading “Disbursements Paid” in accordance with the Closing Statement;
(b)To pay Title Company the Title Charges (without duplication of amounts paid pursuant to clause (a)); and
(c)To pay KBS Seller the amount that is identified on line 610 of the Closing Statement as “Cash to Seller” in accordance with the Closing Statement, which amount is net of the Mezzanine Loan Repayment Amount.
Escrow Agent acknowledges and agrees that upon disbursement of the Closing Funds in accordance with the foregoing, the premiums for the Policies will have been paid in full and the Policies referred to in Paragraph C.3(c) above shall constitute and be effective as New Lender's title insurance policy until New Lender's receipt of each original New Lender's Mortgage Loan Policy.
14. Upon confirmation by the Securities Intermediary that the Defeasance Collateral Purchase Price has been received and disbursement of the Closing Funds in accordance with Paragraph D.2, and receipt by Escrow Agent of Fed Reference Numbers relating to such disbursements, the parties hereto irrevocably instruct Escrow Agent, and Escrow Agent agrees:
(a)To record the Closing Documents in the appropriate recording offices in the following order: 
1.    Deeds evidencing Internal KBS Transfer;
2.    Release of First States Mortgage Loan;
3.    UCC-3 Termination Statement for Mezzanine Loan Repayment;
4    (a) Deed evidencing Chicago Sale Transaction;
(b) Deed evidencing Charlotte Sale Transaction;
(c)  Deeds evidencing JV Acquisition Transaction; and
5.    The security instruments for the New Loan Transaction in the order as set forth on Exhibit G hereto.
(b)To unconditionally issue the Policies.
(c)To deliver the Closing Documents as follows: 
		
	1.
	Disburse equal numbers of counterparts of Defeasance Closing Documents to each of KBS Seller, JV Buyer, Berkadia Commercial Mortgage LLC, as servicer for the First States Loan, and Securities Intermediary;

		
	2. 
	Disburse equal numbers of counterparts of JV Acquisition Closing Documents to each of KBS Seller and JV Buyer;

6

		
	3.
	Disburse equal numbers of counterparts of Mezzanine Loan Repayment Documents to Mezzanine Lender Parties and KBS Mezz Borrower;

		
	4.
	Disburse equal numbers of counterparts of Chicago Sale Documents in accordance with the separate escrow instructions; and

		
	5.
	Disburse equal numbers of counterparts of Charlotte Sale Documents in accordance with the separate escrow instructions.

E. Miscellaneous
15.Notwithstanding anything in the foregoing to the contrary, in the event Escrow Agent has not received the New Lender's Funds and disbursed the Closing Funds in accordance with this Agreement no later than 4:00 p.m. Eastern Standard Time on December 7, 2012, Escrow Agent shall initiate wires returning the Closing Funds to the Party from whom it received such Closing Funds in accordance with each such Party's instructions to Escrow Agent.
16.If Escrow Agent initiates wires to make the disbursements pursuant to Paragraph E.1, Escrow Agent shall, within two (2) business days after initiating such wires, return all executed signature pages to the Party from whom received.
17.Escrow Agent will direct the applicable recording offices to deliver the original filed and/or recorded Closing Documents by return mail to the person indicated thereon, and will promptly deliver to the applicable Party any such original filed and/or recorded Closing Documents that are delivered to Escrow Agent.  In addition, Escrow Agent will deliver to such Party, with copies to counsel for all other applicable Parties, original recording receipts, as available.
18.When available (but not more than forty-five (45) days from the date hereof) Escrow Agent shall deliver each New Lender's Mortgage Loan Policy via overnight courier to New Lender.
19.Escrow Agent agrees to keep all information it receives in connection with this transaction strictly confidential, unless disclosure is required by law.
20.This Closing Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without reference to conflict of law principles.
21.This Closing Agreement may be executed in counterparts (including by facsimile or PDF), all of which taken together will constitute one instrument.
[Signatures appear on following page.]

7

Please execute below acknowledging your acceptance of and agreement to be strictly bound by these terms and conditions.
Very truly yours,

[SIGNATURE PAGE TO CLOSING AGREEMENT]

KBS ACQUISITION SUB-OWNER 2, LLC,
a Delaware limited liability company

		
	By:
	KBS ACQUISITION SUB, LLC,

a Delaware limited liability company,
its sole member

		
	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

[SIGNATURE PAGE TO CLOSING AGREEMENT]

JPM PROPERTY OWNER/BORROWER:
GPT GIG BOA PORTFOLIO OWNER LLC, a Delaware limited liability company,

		
	By:
	KBS ACQUISITION SUB-OWNER 2, LLC,

a Delaware limited liability company

		
	By:
	KBS ACQUISITION SUB, LLC,

a Delaware limited liability company,
its sole member

		
	By:
	KBS ACQUISITON 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

[SIGNATURE PAGE TO CLOSING AGREEMENT]

JV BUYER:

GPT GIG BOA PORTFOLIO HOLDINGS LLC,
a Delaware limited liability company

		
	By:  
	/s/ Benjamin P. Harris

		
	Name:
	Benjamin P. Harris

		
	Title:
	Authorized Signatory

[SIGNATURE PAGE TO CLOSING AGREEMENT]

HFS PROPERTY OWNER:

GPT GIG BOA PORTFOLIO HFS OWNER LLC,
a Delaware limited liability company

		
	By:  
	/s/ Benjamin P. Harris

		
	Name:
	Benjamin P. Harris

		
	Title:
	Authorized Signatory

[SIGNATURE PAGE TO CLOSING AGREEMENT]

DEFEASANCE POOL ASSIGNEE:

GPT GIG BOA DEFEASANCE POOL HOLDINGS LLC,
a Delaware limited liability company

		
	By:  
	/s/ Benjamin P. Harris

		
	Name:
	Benjamin P. Harris

		
	Title:
	Authorized Signatory

[SIGNATURE PAGE TO CLOSING AGREEMENT]

KBS MEZZ BORROWER:
KBS REIT PROPERTIES, LLC, 
a Delaware limited liability company,

		
	By:
	KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its sole member

		
	By:
	KBS REAL ESTATE INVESTMENT TRUST, INC,

a Maryland corporation, its general partner

		
	By:
	/s/ David E. Snyder

David E. Snyder,
Chief Financial Officer

[SIGNATURE PAGE TO CLOSING AGREEMENT]

KBS MEZZ BORROWER:

KBS ACQUISITION SUB-OWNER 5, LLC,
KBS ACQUISITION SUB-OWNER 6, LLC,
KBS ACQUISITION SUB-OWNER 7, LLC,
KBS ACQUISITION SUB-OWNER 8, LLC,
each a Delaware limited liability company

		
	By:
	KBS ACQUISITION SUB, LLC,

a Delaware limited liability company,
its sole member

		
	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

[SIGNATURE PAGE TO CLOSING AGREEMENT]

	
		
	MEZZANINE LENDER PARTIES:

	GRAMERCY INVESTMENT TRUST,

By:  /s/ Benjamin P. Harris
Name: Benjamin P. Harris
Title: Authorized Signatory
	GRAMERCY LOAN SERVICES LLC,

By:  /s/ Benjamin P. Harris
Name: Benjamin P. Harris
Title: Authorized Signatory

[MEZZANINE LENDER PARTIES SIGNATURE PAGES CONTINUE ON NEXT PAGE]

[SIGNATURE PAGE TO CLOSING AGREEMENT]

MEZZANINE LENDER PARTIES:

GARRISON COMMERCIAL FUNDING
XI LLC, a Delaware limited liability company

		
	By:  
	/s/ Julian Weldon

Name:    JULIAN WELDON
Title:    SECRETARY

[SIGNATURE PAGE TO CLOSING AGREEMENT]

TITLE COMPANY/ESCROW AGENT:

FIRST AMERICAN TITLE INSURANCE
COMPANY

		
	By:  
	/s/ Debra Pase

Name:    Debra Pase
Title:    Senior Underwriter

[SIGNATURE PAGE TO CLOSING AGREEMENT]

AGREED AND ACKNOWLEDGED:
KBS REIT PROPERTIES, LLC, 
a Delaware limited liability company

		
	By:
	KBS LIMITED PARTNERSHIP,

a Delaware limited partnership,
its sole member

		
	By:
	KBS REAL ESTATE INVESTMENT TRUST, INC,

a Maryland corporation, its general partner

		
	By:
	/s/ David E. Snyder

David E. Snyder,
Chief Financial Officer
[SIGNATURE CONTINUE ON NEXT PAGE]

[SIGNATURE PAGE TO CLOSING AGREEMENT]

NEW LENDER:

JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION

		
	By:  
	/s/ Thomas N. Cassino

Name:    Thomas N. Cassino
Title:    Vice President

[SIGNATURE PAGE TO CLOSING AGREEMENT]

EXHIBIT A
Finance Properties
		
	1.
	5004- Camelback-Bank Am, Phoenix, AZ

		
	2.
	5005- Catalina-Bank Am, Phoenix, AZ

		
	3.
	5006- Maricopa- Bank Ami, Phoenix, AZ

		
	4.
	5007- McDowell- Bank Ame, Phoenix, AZ

		
	5.
	5008- Mesa Main- Mn Bldr, Mesa, AZ

		
	6.
	5009- South Mountain, Phoenix, AZ

		
	7.
	5011- Bixby- Atlantic, Long Beach, CA

		
	8.
	5012- Calwa, Fresno, CA

		
	9.
	5013- Cedar & Shields, Fresno, CA

		
	10.
	5014- Coronado Branch, Coronada, CA

		
	11.
	5015- East Bakersfield, Bakersfield, CA

		
	12.
	5016- East Compton Brnch Compton, CA

		
	13.
	5017- El Segundo, CA

		
	14.
	5021- Escondido Main, CA

		
	15.
	5022- Fresno Proof/Vault, CA

		
	16.
	5023- Gardena Main, CA

		
	17.
	5024- Glendale Main, CA

		
	18.
	5026- Inland Empire Cash, Ontario, CA [SP]

		
	19.
	5027- Irvine Industrial, Newport Beach, CA

		
	20.
	5030- Lincoln Heights, Los Angeles, CA

		
	21.
	5032- Lynwood Branch, Lynwood, CA

		
	22.
	5034- North Hollywood, CA

		
	23.
	5035- North Sacramento, Sacramento, CA

		
	24.
	5036- Oak Park Branch, Sacramento, CA

		
	25.
	5038- Pico-Vermont Branch, Los Angeles, CA

		
	26.
	5039- Pomona Main, Pomona, CA

		
	27.
	5042- Riverside Main, Riverside, CA

		
	28.
	5043- Salinas Main Branch, Salinas, CA

		
	29.
	5044- San Bernardino Main, CA

		
	30.
	5045- Santa Barbara, CA

		
	31.
	5046- Santa Maria Branch, CA

		
	32.
	5047- Sepulveda, Mission Hills, CA

		
	33.
	5048- Stockdale-Main, Bakersfield, CA

		
	34.
	5050- Sunnyvale Main, CA

		
	35.
	5051- Torrance Sartori, CA

		
	36.
	5053- Ventura Main Office, CA

		
	37.
	5055- Willow-Daisy Brch, Long Beach, CA

		
	38.
	5057- Century Park, Tampa, FL

		
	39.
	5062- Gulf to Bay- Main, Clearwater, Fl

		
	40.
	5064- Jacksonville #100, FL

		
	41.
	5065- Jacksonville #200, FL

		
	42.
	5066- Jacksonville #300, FL

		
	43.
	5067- Jacksonville #400, FL

		
	44.
	5068- Jacksonville #500, FL

		
	45.
	5069- Jacksonville #600, FL

		
	46.
	5070- Jacksonville #700, FL

		
	47.
	5071- Jacksonville Daycr, FL

		
	48.
	5072- Jacksonville Garag, FL

		
	49.
	5073- Jacksonville Schl, FL

		
	50.
	5078- North Hialeah- Main Building, , FL

		
	51.
	5081- Port Charlotte-Main Building, , FL

		
	52.
	5083- San Jose- Main, Jacksonville, FL

		
	53.
	5084- South Region TPC, Miami Lakes, FL

		
	54.
	5086- Westshore Mall, Tampa, FL

		
	55.
	5091- Bull Street, Savannah, GA

		
	56.
	5099- Mission, Overland Park, KS [SP]

		
	57.
	5101- Annapolis Church, MD

		
	58.
	5102- Highlandtown, Baltimore, MD

		
	59.
	5112- Richland Facility-Main Building, MO

		
	60.
	5113- South Glenstone- Main, Springfield, MO

		
	61.
	5114- West Sunshine-Main, Springfield, MO

		
	62.
	5117- Albuquerque Op Ctr, NM [SP]

		
	63.
	5128- Carrollton-Mn Building, TX

		
	64.
	5134- Greenspoint, Houston, TX

		
	65.
	5135- Mission Main Building, Mission, TX

		
	66.
	5148- Bellingham, WA 

		
	67.
	5156- Spokane Bankcard, WA

EXHIBIT B
Held-for-Sale Properties
		
	1.
	5003- Camelback Uptown-Mn, Phoenix, AZ

		
	2.
	5010- Auburn, CA

		
	3.
	5025- Inglewood Main, CA

		
	4.
	5031- Long Beach Financial, CA [SP]

		
	5.
	5037- Palmdale Branch, Palmdale, CA

		
	6.
	5040- Red Bluff Branch, Red Bluff, CA

		
	7.
	5041- Redding Main Branch, Redding, CA

		
	8.
	5049- Stockton Main Office, CA [SP]

		
	9.
	5054- Whittier Office, CA

		
	10.
	5056- Yuba City Branch, CA

		
	11.
	5058- Clermont- Main Building, FL

		
	12.
	5059- Cordova, Pensacola, FL [SP]

		
	13.
	5063- Hallandale Beach, FL [SP]

		
	14.
	5074- Lighthouse Point, FL [SP]

		
	15.
	5079- Ocala Downtown, Ocala, FL [SP]

		
	16.
	5080- Plaza, Stuart, FL

		
	17.
	5088- Winter Park, FL

		
	18.
	5094- Moultrie Main, Moultrie, GA [HFS]

		
	19.
	5095- Valdosta Main, GA [SP]

		
	20.
	5096- Winder Main Building, GA [SP]

		
	21.
	5100- Penn St., Independence, KS [SP]

		
	22.
	5103- Columbia Facility-Main Building, MO

		
	23.
	5104- Concord Village, St. Louis, MO

		
	24.
	5105- Downtown Facility, Rolla, MO [SP]

		
	25.
	5106- Florissant Facility, MO [SP]

		
	26.
	5107- Hampton-Main, St. Louis, MO

		
	27.
	5108- Independence Square, MO [SP]

		
	28.
	5109- Lexington Facilty-Main , MO [SP]

		
	29.
	5110- Mexico Facility, Mexico, MO [HFS]

		
	30.
	5111- Oak Traffic, N. Kansas City, MO [SP]

		
	31.
	5121- Admiral- Main Building, Tulsa, OK [SP]

		
	32.
	5122- Muskogee Main, Muskogee, OK [SP]

		
	33.
	5123- Aiken Main Office, Aiken, SC [SP]

		
	34.
	5124- Murfreesboro Main, TN [SP]

		
	35.
	5126 Aransas Pass, TX [HFS]

		
	36.
	5127- Brownwood- Main Building, TX [HFS]

		
	37.
	5130- Denison, TX [HFS]

		
	38.
	5131- Dumas Banking- Main, TX [HFS]

		
	39.
	5132- Fort Sam Hston-Main, San Antonio, TX

		
	40.
	5133- Fort Worth East- Main, TX [HFS]

		
	41.
	5136- Mount Pleasant, TX [HFS]

		
	42.
	5142- Old Hampton, Hampton, VA [SP]

		
	43.
	5145- Aberdeen Building/BR, WA

		
	44.
	5149- Bremerton, WA

		
	45.
	5155- Richland-Main Building, WA

		
	46.
	5158- Walla Walla Main Building, WA

Parking Lot Property

1.    5108- Independence Square, MO - 400 N. Osage  St. parking Lot

EXHIBIT C
Internal KBS Transfer Documents
(1) Finance Properties 
		
	1.
	Bill of Sale from First States Investors 5000A

		
	2.
	Lease Assignment and Assumption Agreement First States Investors 5000A and Borrower

		
	3.
	Assignment and Assumption of Licenses, Contracts, Permits, Guaranties and Warranties  from First States Investors 5000A

		
	4.
	Assignment of Master Lease from First States Investors 5000A

		
	5.
	For each Finance Property listed on Exhibit A, each of the following:

		
	a.
	Deed for Internal KBS Transfer from First States Investors 5000A to Borrower

		
	b.
	Satisfaction/Release of Combined Fee and Leasehold Multistate Mortgage, Deed to Secure Debt, Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits dated as of June 30, 2003, as amended and assigned, from First States Lender 

		
	c.
	UCC-3 Termination Statements for Delaware Secretary of State and local recording offices

		
	d.
	Transfer Tax forms for Internal KBS Transfer from First States Investors 5000A and Borrower

		
	e.
	Transfer Tax forms for Membership Interest Transfer from KBS Seller and JV Buyer

		
	f.
	Title Affidavit from First States Investors 5000A

		
	6.
	Assignment and Assumption of Ground Lease for 5004 Camelback-Bank AM (AZ), 5005 Catalina-Bank AM (AZ), 5006 Maricopa-Bank AM (AZ), 5007 McDowell-Bank AM (AZ), 5009 South Mountain (AZ), 5023 Gardena Main (CA), 5039 Pomona Main (CA), 5113 South Glenstone-Main (MO), 5113 South Glenstone-Main (Lots 3, 4 and 5) (MO) and 5114 West Sunshine-Main (MO).

		
	7.
	Assignment and Assumption of Parking Lease for 5021 Escondido Main (CA).

 (2) Held For Sale Properties 
		
	1.
	Bill of Sale from First States Investors 5000A

		
	2.
	Lease Assignment and Assumption Agreement from First States Investors 5000A and HFS Property Owner

		
	3.
	Assignment and Assumption of Intangible Property from First States Investors 5000A

		
	4.
	For each Held For Sale Property listed on Exhibit B)

		
	a.
	Deed for JV Acquisition Transaction from First States Investors 5000A, LLC to HFS Property Owner 

		
	b.
	Satisfaction/Release of Combined Fee and Leasehold Multistate Mortgage, Deed to Secure Debt, Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits dated as of June 30, 2003, as amended and assigned, from First States Lender

		
	c.
	UCC-3 Termination Statements for Delaware Secretary of State and local recording offices

		
	d.
	Transfer Tax forms for JV Acquisition Transfer from First States Investors 5000A and HFS Property Owner

		
	e.
	Title Affidavit from First States Investors 5000A

		
	f.
	New lease from Bank of America, N.A., as tenant, and HFS Property Owner, as landlord.

		
	5.
	Assignment and Assumption of Ground Lease for 5003 Camelback Uptown-Mn (AZ), 5025 Inglewood Main (CA), 5058 Clermont-Main Building (CA), 5105 Downtown Facility (MO) and 5145 Aberdeen Building/BR (WA).

		
	6.
	Assignment and Assumption of Parking Lease for 5145 Aberdeen Building/BR (WA).

		
	7.
	Assignment of Memorandum of Understanding and Assumption Agreement for 5124 Murfreesboro Main (TN)

 (3) Parking Lot Property
		
	1.
	Parking Lot Property 

		
	a.
	Deed from GKK Independence Square Lot, LLC, to HFS Property Owner  

		
	b.
	Satisfaction/Release of Combined Fee and Leasehold Multistate Mortgage, Deed to Secure Debt, 

Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits dated as of June 30, 2003, as amended and assigned, from First States Lender
		
	c.
	UCC-3 Termination Statements for Delaware Secretary of State and local recording offices

		
	d.
	Transfer Tax forms for transfer from GKK Independence Square Lot, LLC and HFS Property

Owner 
		
	e.
	Title Affidavit from First States Investors 5000A 

EXHIBIT D
Defeasance Closing Documents
		
	1.
	Defeasance Pledge and Security Agreement

		
	2.
	Defeasance Account Agreement

		
	3.
	Defeasance Assignment, Assumption and Release Agreement

		
	4.
	Defeasance Certificate

		
	5.
	Defeasance Waiver and Consent Agreement 

		
	6.
	Mortgage Release and/or Satisfaction for each of the Held For Sale Properties and Finance Properties

		
	7.
	Termination of Assignment of Leases and Rent Releases for each of the Held For Sale Properties and Finance Properties

		
	8.
	UCC-3 Termination Statements

 

EXHIBIT E
Mezzanine Loan Repayment Documents

		
	1.
	Omnibus Termination of Security Documents

		
	2.
	UCC-3 Termination Statements

		
	3.
	Original, cancelled Note

EXHIBIT F

JV Acquisition Closing Documents
		
	1.
	Assignment and Assumption of Interests

		
	2.
	Resignation of managers, officers and/or directors of:

		
	a.
	GPT GIG BOA Portfolio HFS Owner LLC

		
	b.
	GKK Independence Square Lot, LLC

		
	c.
	AFR Defeasance Pool 1A, LLC

		
	d.
	GPT GIG BOA Portfolio Owner LLC

		
	3.
	First Amendment to Agreement for Sale of Membership Interests

		
	4.
	Representation and Indemnity Agreement

		
	5.
	Representation Update Certificate

		
	6.
	Instruction Letter from GKK to AST&T

		
	7.
	Acknowledgment by AST&T

		
	8.
	Stockholder Agreement

		
	9.
	Letter agreement regarding stock

EXHIBIT G
New Loan Closing Documents

		
	1.
	Mortgage and Security Agreements, Deed of Trust and Security Agreements and Deed to Secure Debt and Security Agreement, each as described on Schedule 1 attached hereto

		
	2.
	ALRs, as described on Schedule 2 attached hereto

		
	3.
	UCC-1 Financing Statements (counties where each Finance Property  is located), as described on Schedule 3 attached hereto

		
	4.
	UCC-1 Financing Statement (Delaware)

		
	5.
	Termination of all existing UCC financing statements and assignments of rents

		
	6.
	Termination of lockbox/clearing account agreement for prior loan

		
	7.
	Satisfaction of all existing mortgages

8.Bank of America's original signature page to the Master Tenant SNDA

SCHEDULE 1 TO EXHIBIT G
Mortgage and Security Agreements, Deed of Trust and Security Agreements and Deed to Secure Debt and Security Agreement

	
			
	State
	Description of Document
	County

	Arizona
	Fee and Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Maricopa County

	California
	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Fresno County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Kern County

	Fee and Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Los Angeles County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Monterey County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Orange County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Riverside County

	
			
	State
	Description of Document
	County

	 
	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Sacramento County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	San Bernardino County

	Fee and Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	San Diego County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Santa Barbara County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Santa Clara County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as trustee, for the benefit of Lender
	Ventura County

	Florida
	Multistate Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Charlotte County

	Multistate Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Duval County

	Multistate Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Hillsborough County

	Multistate Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Miami-Dade County

	
			
	State
	Description of Document
	County

	 
	Multistate Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Pinellas County

	Georgia
	Deed to Secure Debt, Assignment of Leases and Rents and Security Agreement by Borrower, as grantor, to Lender
	Chatham County

	Kansas
	Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Johnson County

	Maryland
	Purchase Money Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Susan C. Milne, Esq. c/o First American Title Insurance Company, as trustee, for the benefit of Lender
	Anne Arundel County

	Purchase Money Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Susan C. Milne, Esq. c/o First American Title Insurance Company, as trustee, for the benefit of Lender
	Baltimore City

	Missouri
	Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Kevin Twellman, as trustee, for the benefit of Lender
	Greene County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Kevin Twellman, as trustee, for the benefit of Lender
	Pulaski County

	New Mexico
	Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as mortgagor, to Lender
	Bernalillo County

	Texas
	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Peter S. Graf, as trustee, for the benefit of Lender
	Dallas County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Peter S. Graf, as trustee, for the benefit of Lender
	Harrison County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to Peter S. Graf, as trustee, for the benefit of Lender
	Hidalgo County

	
			
	State
	Description of Document
	County

	Washington
	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as grantee/trustee, for the benefit of Lender
	Spokane County

	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by Borrower, as grantor, to First American Title Insurance Company, as grantee/trustee, for the benefit of Lender
	Whatcom County

SCHEDULE 2 TO EXHIBIT G
ALRs

	
			
	State
	Description of Document
	County

	Arizona
	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Maricopa County

	California
	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Fresno County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Kern County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Los Angeles County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Monterey County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Orange County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Riverside County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Sacramento County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	San Bernardino County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	San Diego County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Santa Barbara County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Santa Clara County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Ventura County

	Georgia
	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Chatham County

	Kansas
	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Johnson County

	Missouri
	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Greene County

	Assignment of Leases and Rents by Borrower, as assignor, to Lender
	Pulaski County

SCHEDULE 3 TO EXHIBIT G
UCC-1 Financing Statements (counties where each Finance Property is located)
	
			
	State
	Description of Document
	County

	California
	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Fresno County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Kern County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Los Angeles County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Monterey County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Orange County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Riverside County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Sacramento County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	San Bernardino County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	San Diego County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Santa Barbara County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Santa Clara County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Ventura County

	Georgia
	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Chatham County

	Kansas
	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Johnson County

	Maryland
	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Anne Arundel County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Baltimore City

	Missouri
	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Greene County

	UCC-1 Financing Statement naming Borrower, as debtor, and Lender, as Secured Party
	Pulaski County

EXHIBIT H
Chicago Sale Closing Documents
		
	1.
	Special Warranty Deed

		
	2.
	Bill of Sale

		
	3.
	Assignment and Assumption of Leases

		
	4.
	Assignment of Intangible Property

		
	5.
	Transfer of Security Deposits/Letters of Credits

		
	6.
	FIRPTA

		
	7.
	Transfer Tax forms

EXHIBIT I
Charlotte Sale Closing Documents
		
	1.
	Special Warranty Deed 

		
	2.
	Quitclaim Deed 

		
	3.
	Bill of Sale 

		
	4.
	Assignment and Assumption of Leases 

		
	5.
	FIRPTA 

		
	6.
	Transfer Tax forms

EXHIBIT J
List of Defeasance Collateral
[see attached]

EXHIBIT K
Amounts of HFS Property Owner's Policies
[see attached]

EXHIBIT L
Amounts of JPM Property Owner's Policies
[see attached]

EXHIBIT M
Amounts of New Lender's Mortgage Loan Policy

See far right column of Exhibit L

EXHIBIT N
Closing Statement
[see attached]

GPT GIG BOA PORTFOLIO HOLDINGS LLC,
a Delaware limited liability company

		
	By:  
	/s/ Benjamin P. Harris

		
	Name:
	Benjamin P. Harris

		
	Title:
	Authorized Signatory

KBS ACQUISITION SUB-OWNER 2, LLC,
a Delaware limited liability company

		
	By:  
	/s/ David E. Snyder

		
	Name:
	David E. Snyder

		
	Title:
	CFO

GPT GIG BOA PORTFOLIO HOLDINGS LLC,
a Delaware limited liability company

		
	By:  
	/s/ Benjamin P. Harris

Name:    Benjamin P. Harris
Title:    Authorized Signatory

KBS ACQUISITION SUB-OWNER 2, LLC,
a Delaware limited liability company

		
	By:  
	/s/ David E. Snyder

		
	Name:
	David E. Snyder

		
	Title:
	CFO

EXHIBIT O
Escrow Account
[First American Escrow Account Information and No.]
[see attached]

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