Document:

EX-10.2

INVESTOR RIGHTS AGREEMENT

This Investor Rights Agreement dated as of October 25, 2007 (this “Agreement”) is entered into
by and among Joe’s Jeans Inc. (f/k/a Innovo Group Inc.), a Delaware corporation (the “Company”),
and Joseph M. Dahan, a California resident (the “Investor”).

WHEREAS, the Company and the Investor have entered into an Agreement and Plan of Merger dated
as of February 6, 2007 and June 25, 2007 (the “Merger Agreement”) pursuant to which the Investor
shall receive a number of shares of the common stock, par value $0.10 per share, of the Company
(the “Common Stock”), as set forth therein;

WHEREAS, in order to induce the Investor to enter into the Merger Agreement, the Company has
agreed to grant certain registration rights to the Investor with respect to such shares and certain
Board designation rights, in each case, subject to the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

Section 1. Definitions. As used herein, the following terms have the indicated
meanings, unless the context otherwise requires:

“Agreement” has the meaning given to such term in the preamble hereto.

“Beneficially Own,” “Beneficially Owned,” “Beneficial Ownership” and “Beneficial Owner” with
respect to any securities means the Investor having such ownership, control or power to direct the
voting with respect to, or which otherwise enables the Investor to legally act with respect to,
such securities as contemplated hereby, including without limitation pursuant to any agreement,
arrangement or understanding, regardless of whether in writing. Securities “Beneficially Owned”
shall include securities Beneficially Owned by all other persons with whom the Investor would
constitute a “group” as within the meaning of Section 13(d) of the Exchange Act.

“Blackout Period” means, with respect to a Registration Statement, a period in each case
commencing on the day immediately after the Company notifies the Investor that he is required,
pursuant to Section 3(c)(vi), to suspend offers and sales of Registrable Securities during which
the Company, in the good faith judgment of the Board, determines (because of the existence of, or
in anticipation of, any acquisition, financing activity, or other transaction involving the
Company, or the unavailability for reasons beyond the Company’s control of any required financial
statements, disclosure of information which is in its best interest not to publicly disclose, or
any other event or condition of similar significance to the Company) that the registration and
distribution of (and/or the registration of the offer and sale of) the Registrable Securities
covered or to be covered by such Registration Statement would be seriously detrimental to the
Company and its stockholders and ending on the earlier of (a) the date upon which the material
non-public information commencing the Blackout Period is disclosed to the public or ceases to be
material and (b) such time as the Company notifies the Investor that the Company will no longer
delay such filing of such Registration Statement, recommence taking steps to make such Registration
Statement effective, or allow sales pursuant to such Registration Statement to resume; provided
that no Blackout Period may last for more than 60 consecutive days; provided, further, that during
any period of 365 consecutive days, Blackout Periods may not, in the aggregate, last for more than
the greater of (a) zero days and (b) the result of 90 days minus the number of days that the
Investor is required pursuant to Section 3(d) to discontinue and suspend disposition of Registrable
Securities because of the happening of any event described in Section 3(c)(vi).

“Board” means the board of directors of the Company.

“Business Day” means any day of the year, other than a Saturday, Sunday, or other day on which
the SEC is required or authorized to close.

“Closing Date” has the meaning given to such term in the Merger Agreement.

“Common Stock” has the meaning given to such term in the recitals hereto.

“Company” has the meaning given to such term in the preamble hereto.

“Effectiveness Period” has the meaning given to such term in Section 3(c)(i).

“Equity Securities Offering” means any underwritten registered offering of Relevant
Securities, and any offering or placement of any Relevant Securities pursuant to Rule 144A under
the Securities Act.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

“Family Member” means (a) with respect to any individual, such individual’s spouse, any
descendants (whether natural or adopted), any trust all of the beneficial interests of which are
owned by any of such individuals or by any of such individuals together with any organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any
such individual, and any corporation, association, partnership, limited liability company or other
entity all of the equity interests of which are owned by those above described individuals, trusts
or organizations and (b) with respect to any trust, the owners of the beneficial interests of such
trust.

“Form S-1” means such form under the Securities Act as in effect on the date of this Agreement
or any successor registration form thereto under the Securities Act subsequently adopted by the
SEC.

“Form S-3” means such form under the Securities Act as in effect on the date of this Agreement
or any successor registration form thereto under the Securities Act subsequently adopted by the
SEC.

“Form S-4” means such form under the Securities Act as in effect on the date of this Agreement
or any successor registration form thereto under the Securities Act subsequently adopted by the
SEC.

“Form S-8” means such form under the Securities Act as in effect on the date of this Agreement
or any successor registration form thereto under the Securities Act subsequently adopted by the
SEC.

“Inspector” means any attorney, accountant or other agent retained by the Investor for the
purposes provided in Section 3(c)(ix).

“Investor” has the meaning given to such term in the preamble hereto.

“Investor Director” means any member of the Board that was nominated for election to the Board
by the Investor pursuant to and in accordance with Section 2(a).

“Merger Agreement” has the meaning given to such term in the recitals hereto.

“NASD” means the National Association of Securities Dealers.

“Piggyback Registration” has the meaning given to such term in Section 3(b)(i).

“Piggyback Registration Statement” has the meaning given to such term in Section 3(b)(i).

“register,” “registered,” and “registration” refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities Act, and the declaration or
ordering of the effectiveness of such registration statement.

“Registrable Securities” means the Unlocked Shares, excluding any such Unlocked Shares (a)
that have been publicly sold or may be sold immediately without registration or the requirement to
make filings with the SEC under the Securities Act either pursuant to Rule 144 of the Securities
Act or otherwise, (b) sold by a person in a transaction pursuant to a registration statement filed
under the Securities Act or (c) that are at the time subject to an effective registration statement
under the Securities Act (other than the Registration Statements contemplated hereby).

“Registration Expenses” has the meaning given to such term in Section 3(e).

“Registration Statement” means either any of the Piggyback Registration Statements or the
Shelf Registration Statement; and “Registration Statements” means, collectively, the Piggyback
Registration Statements and the Shelf Registration Statement.

“Relevant Security” means the Shares, any other equity security of the Company or any of its
subsidiaries and any security convertible into, or exercisable or exchangeable for, any Shares or
other such equity security.

“SEC” means the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

“SEC Effective Date” means, with respect to a Registration Statement, the date as of which
such Registration Statement is originally declared effective by the SEC.

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute
promulgated in replacement thereof, and the rules and regulations of the SEC thereunder, all as the
same shall be in effect from time to time.

“Selling Expenses” has the meaning given to such term in Section 3(e).

“Shares” means the shares of Common Stock issued to the Investor pursuant to the Merger
Agreement and (a) any and all shares of capital stock or other equity securities of the Company
which are added to or exchanged or substituted for such shares of Common Stock by reason of the
declaration of any stock dividend or stock split, the issuance of any distribution or the
reclassification, readjustment, recapitalization or other such modification of the capital
structure of the Company; and (b) any and all shares of capital stock or other equity securities of
any other corporation (now or hereafter organized under the laws of any state or other governmental
authority) with which the Company is merged, which results from any consolidation or reorganization
to which the Company is a party, or to which is sold all or substantially all of the shares or
assets of the Company, for which such shares of Common Stock are exchanged or substituted in
connection with such merger, consolidation, reorganization or sale, if immediately after such
merger, consolidation, reorganization or sale, the Company or the stockholders of the Company own
equity securities having in the aggregate more than 50% of the total voting power of such other
corporation.

“Shelf Registration Statement” has the meaning given to such term in Section 3(a).

“Transfer” has the meaning given to such term in Section 3(a).

“Unlocked Shares” means on the six month anniversary of the Closing Date 1/6 of the Shares and
thereafter at the end of every additional six month period, an additional 1/6 of the Shares until
the Shares are released in full on the third year anniversary of the Closing Date.

Section 2. Board Designation Rights.

(a) Designation. Upon execution of this Agreement, the Investor shall have the right
to designate himself for election to the Board.

(b) Company Support. The Company shall support the nomination of the Investor
pursuant to Section 2(a), and the Company shall use its best efforts to cause the Board (and the
Company’s nominating committee, if any) to recommend the inclusion of such person in the slate of
nominees recommended to stockholders for election as directors at the next annual meeting of
stockholders of the Company.

Section 3. Registration Rights.

(a) Shelf Registration Statement. On the written request of the Investor beginning on
or after six months from the Closing Date of the Shares , the Company shall (i) file with the SEC a
shelf registration statement on Form S-1 (or, if the Company is eligible to use such form, Form
S-3) relating to the registration of the offer and resale by the Investor of the number of
Registrable Securities specified in such written request (the “Shelf Registration Statement”) and
(ii) use its commercially reasonable efforts to cause the Shelf Registration Statement to be
declared effective by the SEC no later than 60 days after the filing of the Shelf Registration
Statement in response to such written request; provided, however, that the Company shall not be
obligated to effect any such registration pursuant to this Section 3(a), or keep such registration
or the Shelf Registration Statement effective pursuant to Section 3(c)(i), during any Blackout
Period and provided further that the Company shall not be obligated to file any such registration
statement pursuant to this Section 3(a) within 90 days after the date of the filing of the most
recent registration statement pursuant to this Section 3(a).

(b) Piggyback Registration Rights.

(i) Piggyback Registration. If after the date that is six (6) months after the
Closing Date, the Company shall determine to register the offer and sale for cash of any of
its Common Stock for its own account, other than (i) a registration relating solely to
employee benefit plans or securities issued or issuable to employees, consultants (to the
extent the securities owned or to be owned by such consultants could be registered on Form
S-8) or any of their Family Members (including a registration on Form S-8), (ii) a
registration on Form S-4 in connection with a merger, acquisition, divestiture,
reorganization, exchange offer or similar event, or (iii) a registration in which the only
Common Stock being registered is Common Stock issuable upon conversion of debt securities
that are also being registered, then (subject to Section 3(b)(ii)) the Company shall
promptly give to the Investor written notice thereof, and in no event shall such notice be
given less than 20 calendar days prior to the filing of the registration statement (a
“Piggyback Registration Statement”) with respect to such registration (a “Piggyback
Registration”), and shall, subject to Section 3(b)(ii), include in the Piggyback
Registration, all of the Registrable Securities specified in a written request, made within
10 calendar days after receipt of such written notice from the Company, by the Investor.
However, the Company may, without the consent of the Investor, withdraw the Piggyback
Registration Statement prior to its becoming effective if the Company has elected to abandon
the proposal to register the securities proposed to be registered thereby.

(ii) Underwriting. If a Piggyback Registration is for a registered public
offering involving an underwriting, the Company shall so advise the Investor in writing or
as a part of the written notice given pursuant to Section 3(b)(i). In such event the right
of the Investor to registration pursuant to Section 3(b)(i) shall be conditioned upon the
Investor’s participation in such underwriting and the inclusion of the Investor’s
Registrable Securities in the underwriting to the extent provided herein. The Investor
proposing to distribute his securities through such underwriting shall (together with the
Company) enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by the Company. Notwithstanding any other
provision of this Section 3(b)(ii), if the underwriter or the Company determines that
marketing factors require a limitation of the number of shares to be underwritten, the
underwriter may exclude some or all Registrable Securities from such registration and
underwriting. The Company shall so advise the Investor and the number of shares that may be
included in the registration and underwriting shall be allocated:

(A) first to the Company; and

(B) then, subject to written obligations and commitments existing as of the
date hereof, to all selling stockholders, including the Investor, who have requested
to sell in the registration on a pro rata basis according to the number of shares
requested to be included.

No Registrable Securities excluded from the underwriting by reason of the underwriter’s
marketing limitation shall be included in such registration. If the Investor disapproves of
the terms of any such underwriting, the Investor may elect to withdraw therefrom by written
notice to the Company and the underwriter. The Registrable Securities and/or other
securities so withdrawn from such underwriting shall also be withdrawn from such
registration.

(c) Registration Procedures. In the case of each registration, qualification, or
compliance effected by the Company pursuant to Section 3(a) and Section 3(b), the Company will keep
the Investor reasonably advised in writing (which may include e-mail) as to the initiation of each
registration, qualification, and compliance and as to the completion thereof. In addition, the
Company hereby agrees as follows with respect to each Registration Statement:

(i) The Company will use its commercially reasonable efforts to cause such Registration
Statement to become and remain effective at least for a period ending with the first to
occur of (A) the sale by the Investor of all Registrable Securities covered by such
Registration Statement, (B) the availability under Rule 144 for the Investor to immediately,
freely resell without restriction under United States federal securities laws all
Registrable Securities covered by such Registration Statement, or (C) the date that is two
years after the SEC Effective Date of such Registration Statement (provided, however, that
if the Company files a Registration Statement on Form S-1 and subsequently becomes eligible
to use Form S-3, it may file a post-effective amendment to such Form S-1 on Form S-3 prior
to the end of such period and use its commercially reasonable efforts to cause such
Registration Statement as amended to become effective until the end of such period, and
provided further, that if the Company has filed a Registration Statement and thereafter
receives another written request in accordance with this Agreement to include additional
Registrable Securities in such Registration Statement, the Company may file a post-effective
amendment to such Registration Statement prior to the end of such period and use its
commercially reasonable efforts to cause such Registration Statement as amended to become
effective until the end of such period) (in any such case, the “Effectiveness Period”).

(ii) If any Registration Statement becomes subject to review by the SEC, the Company
will promptly respond to all comments and diligently pursue resolution of any comments to
the satisfaction of the SEC.

(iii) The Company will prepare and file with the SEC such amendments and supplements to
each Registration Statement and any prospectus used in connection therewith as may be
reasonably necessary to keep such Registration Statement effective during the applicable
Effectiveness Period, and will comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such Registration Statement during such
period in accordance with the intended method(s) of disposition by the sellers thereof set
forth in such Registration Statement.

(iv) The Company will furnish, without charge, to the Investor (A) a reasonable number
of copies of each Registration Statement (including any exhibits thereto other than exhibits
incorporated by reference), each amendment and supplement thereto as the Investor may
request, (B) such number of copies of the prospectus included in such Registration Statement
(including each preliminary prospectus and any other prospectus filed under Rule 424 under
the Securities Act) as the Investor may request, in conformity with the requirements of the
Securities Act, and (C) such other documents as the Investor may reasonably request in order
to facilitate the disposition of the Registrable Securities owned by the Investor, but only
during the applicable Effectiveness Period.

(v) The Company will use its commercially reasonable efforts to register or qualify the
Registrable Securities under such other applicable securities or blue sky laws of such
jurisdictions as the Investor reasonably requests as may be necessary for the marketability
of the Registrable Securities (such request to be made by the time the relevant Registration
Statement is deemed effective by the SEC) and do any and all other acts and things which may
be reasonably necessary or advisable to enable the Investor to consummate the disposition in
such jurisdictions of the Registrable Securities owned by the Investor; provided, however,
that the Company shall not be required to (A) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this paragraph (v),
(B) subject itself to taxation in any such jurisdiction, or (C) consent to general service
of process in any such jurisdiction.

(vi) As promptly as practicable after becoming aware of such event, the Company will
notify the Investor of Registrable Securities being offered or sold pursuant to each
Registration Statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event which comes to the
Company’s attention if as a result of such event the prospectus included in such
Registration Statement contains an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading, and the Company shall promptly prepare and furnish to the Investor a supplement
or amendment to such prospectus (or prepare and file appropriate reports under the Exchange
Act) so that, as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading, unless suspension of the use of such prospectus otherwise is authorized herein
or in the event of a Blackout Period, in which case no supplement or amendment need be
furnished (or Exchange Act filing made) until the termination of such suspension or Blackout
Period.

(vii) The Company will comply, and continue to comply during the period that each
Registration Statement is effective under the Securities Act, in all material respects with
the Securities Act and the Exchange Act and with all applicable rules and regulations of the
SEC with respect to the disposition of all securities covered by such Registration
Statement.

(viii) As promptly as practicable after becoming aware of such event, the Company will
notify the Investor of the issuance by the SEC of any stop order or other suspension of
effectiveness of such Registration Statement.

(ix) The Company will make available for inspection by the Investor and any Inspector
retained by the Investor, at the Investor’s sole expense, all records as shall be reasonably
necessary to enable the Investor to exercise his due diligence responsibility, and cause the
Company’s officers, directors, and employees to supply all information which the Investor or
any Inspector may reasonably request for purposes of such due diligence; provided, however,
that the Investor shall hold in confidence and shall not make any disclosure of any record
or other information which the Company determines in good faith to be confidential, and of
which determination the Investor is so notified at the time the Investor receives such
information, unless (w) the Investor has, or obtained, knowledge of such information without
violation of or protection under any agreements with the Company or, to his knowledge any
third party, (x) the disclosure of such record is reasonably necessary to avoid or correct a
misstatement or omission in each Registration Statement and a reasonable time prior to such
disclosure the Investor shall have informed the Company of the need to so correct such
misstatement or omission and the Company shall have failed to correct such misstatement of
omission, (y) the release of such record is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction or (z) the information in such
record has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company shall not be required to disclose any
confidential information in such records to any Inspector until and unless such Inspector
shall have entered into a confidentiality agreement with the Company with respect thereto,
containing terms substantially similar to those set forth in this Section 3(c)(ix), which
agreement shall permit such Inspector to disclose records to the Investor. The Investor
agrees that he shall, upon learning that disclosure of such records is sought in or by a
court or governmental body of competent jurisdiction or through other means, give prompt
notice to the Company and allow the Company, at the Company’s expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order for, the
records deemed confidential. The Company shall hold in confidence and shall not make any
disclosure of information concerning the Investor provided to the Company pursuant to this
Agreement unless (A) disclosure of such information is reasonably necessary to comply with
federal or state securities laws, (B) disclosure of such information to the SEC’s Staff of
the Division of Corporation Finance is reasonably necessary to respond to comments raised by
such staff in its review of such Registration Statement, (C) disclosure of such information
is reasonably necessary to avoid or correct a misstatement or omission in such Registration
Statement, (D) release of such information is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction, or (E) such information has
been made generally available to the public other than by disclosure in violation of this or
any other agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning the Investor is sought in or by a court or governmental body of
competent jurisdiction or through other means, give prompt notice to the Investor and allow
the Investor, at the Investor’s expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

(x) The Company will use its commercially reasonable efforts to cause all the
Registrable Securities covered by each Registration Statement to be listed or quoted on a
principal securities market.

(xi) The Company will provide a transfer agent and registrar, which may be a single
entity, for the Registrable Securities at all times.

(xii) The Company will cooperate with the Investor to facilitate the timely preparation
and delivery of certificates (not bearing any restrictive legends) representing Registrable
Securities to be offered pursuant to such Registration Statement and enable such
certificates to be in such denominations or amounts as the Investor may reasonably request.

(xiii) The Company will take all other reasonable actions necessary to expedite and
facilitate disposition by the Investor pursuant to each Registration Statement, including
without limitation making its chief executive officer, president, chief financial officer
and other appropriate officers and personnel available to participate in marketing efforts
with respect to any registered underwritten public offering.

(d) Suspension of Offers and Sales. The Investor agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in Section 3(c)(vi) or
of the commencement of a Blackout Period, the Investor shall discontinue and suspend disposition of
Registrable Securities pursuant to any Registration Statement until the Investor’s receipt of the
copies of the supplemented or amended prospectus contemplated by Section 3(c)(vi) or notice of the
end of the Blackout Period, and, if so directed by the Company, the Investor shall deliver to the
Company (at the Company’s expense) all copies (including, without limitation, any and all drafts),
other than permanent file copies, then in the Investor’s possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

(e) Registration Expenses. All expenses incident to the Company’s performance of or
compliance with this Agreement, including without limitation all registration and filing fees,
messenger and delivery expenses, printing expenses, internal expenses (including without limitation
all salaries and expenses of its officers and employees performing legal or accounting duties), all
fees and expenses associated with filings required to be made with the NASD, as may be required by
the rules and regulations of the NASD, fees and expenses of compliance with securities or blue sky
laws (including reasonable fees and disbursements of counsel in connection with blue sky
qualifications of the Registrable Securities), rating agency fees, the fees and expenses incurred
in connection with the listing of the securities to be registered on all securities exchanges on
which similar securities issued by the Company are then quoted or listed, fees and disbursements of
counsel for the Company and its independent certified public accountants, and the fees and expenses
of any other persons retained by the Company, in connection with the registration hereunder
(collectively, the “Registration Expenses”) will be borne by the Company, but not including any
roadshow expenses, fees and expenses of counsel for the Investor and any underwriting, broker or
dealer discounts or commissions attributable to the sale of Registrable Securities (which are
hereinafter referred to as “Selling Expenses”). All Selling Expenses shall be borne solely by the
Investor.

(f) Information by the Investor. The Investor shall furnish to the Company such
information required under Regulation S-K under the Securities Act regarding the Investor and the
distribution proposed by the Investor as the Company may request in writing. The Investor will not
be entitled to have such Registrable Securities included in a Registration Statement if the
Investor does not furnish such information requested by the Company.

(g) Indemnification.

(i) In the event of the offer and sale of Registrable Securities under the Securities
Act, the Company shall, and hereby does, indemnify and hold harmless, to the fullest extent
permitted by law, the Investor, each other person who participates as an underwriter in the
offering or sale of such securities, and each other person, if any, who controls or is under
common control with the Investor or any such underwriter within the meaning of Section 15 of
the Securities Act, against any losses, claims, damages or liabilities, joint or several,
and expenses to which the Investor or any underwriter or controlling person may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in (A) any Registration Statement, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any amendment or
supplement thereto, or (B) in any materials or information provided to investors by, or with
the written approval of, the Company in connection with the marketing of the offering of the
Shares (“Marketing Materials”), including any road show or investor presentations
made to investors by the Company (whether in person or electronically), or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein in light of the circumstances in which they were made not
misleading, and the Company shall reimburse the Investor, and each underwriter and
controlling person for any legal or any other expenses reasonably incurred by them in
connection with investigating, defending or settling any such loss, claim, damage,
liability, action or proceeding; provided that the foregoing shall not apply, and the
Company shall not be liable, in any such case (A) to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense arises out of or
is based upon an untrue statement or alleged untrue statement in or omission or alleged
omission from such Registration Statement, any such preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company through an instrument duly executed by or
on behalf of the Investor specifically stating that it is for use in the preparation
thereof, or (B) to the extent that the Investor failed to comply with the terms of the plan
of distribution mechanics described in the applicable prospectus. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the
Investor, or any such underwriter or controlling person and shall survive the transfer of
such shares by the Investor.

(ii) As a condition to including any Registrable Securities to be offered by the
Investor in any Registration Statement, the Investor agrees to be bound by the terms of this
Section 3(g) and to indemnify and hold harmless, to the fullest extent permitted by law, the
Company, its directors and officers, and each other person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act, legal counsel and accountants for
the Company, any underwriter and any controlling person within the meaning of the Securities
Act of any such underwriter, against any losses, claims, damages or liabilities, joint or
several, to which the Company or any such director or officer or controlling person may
become subject under the Securities Act or otherwise, (A) insofar as such losses, claims,
damages or liabilities (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon an untrue statement or omission from such
Registration Statement, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, if such statement or omission was
made in reliance upon and in conformity with written information furnished to the Company
through an instrument duly executed by or on behalf of the Investor specifically stating
that it is for use in the preparation thereof, or (B) to the extent that the Investor failed
to comply with the terms of the plan of distribution mechanics described in the applicable
prospectus. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Company, or any such director, officer, partner,
underwriter or controlling person and shall survive the transfer of such shares by the
Investor, and the Investor shall reimburse the Company, and each such director, officer,
legal counsel and accountants, underwriter, other stockholder, and controlling person for
any legal or other expenses reasonably incurred by them in connection with investigating,
defending, or settling and such loss, claim, damage, liability, action, or proceeding;
provided, however, that such indemnity agreement found in this Section 3(g)(ii) shall in no
event exceed the gross proceeds from the offering received by the Investor.

(iii) Promptly after receipt by an indemnified party of notice of the commencement of
any action or proceeding involving a claim referred to in Section 3(g)(i) or Section
3(g)(ii) (including any governmental action), such indemnified party shall, if a claim in
respect thereof is to be made against an indemnifying party, give written notice to the
indemnifying party of the commencement of such action; provided, however, that the failure
of any indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under Section 3(g)(i) or Section 3(g)(ii), except to
the extent that the indemnifying party is actually prejudiced by such failure to give
notice. In case any such action is brought against an indemnified party, unless in the
reasonable judgment of counsel to such indemnified party a conflict of interest between such
indemnified and indemnifying parties may exist or the indemnified party may have defenses
not available to the indemnifying party in respect of such claim, the indemnifying party
shall be entitled to participate in and to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party and, after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal or other
expenses subsequently incurred by the latter in connection with the defense thereof, unless
in such indemnified party’s reasonable judgment a conflict of interest between such
indemnified and indemnifying parties arises in respect of such claim after the assumption of
the defenses thereof or the indemnifying party fails to defend such claim in a diligent
manner, other than reasonable costs of investigation. Neither an indemnified nor an
indemnifying party shall be liable for any settlement of any action or proceeding effected
without its consent. No indemnifying party shall, without the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement, which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect of such claim or litigation.
Notwithstanding anything to the contrary set forth herein, and without limiting any of the
rights set forth above, in any event any party shall have the right to retain, at its own
expense, counsel with respect to the defense of a claim.

(iv) In the event that an indemnifying party does or is not permitted to assume the
defense of an action pursuant to Section 3(g)(iii) or in the case of the expense
reimbursement obligation set forth in Section 3(g)(i) and Section 3(g)(ii), the
indemnification required by Section 3(g)(i) and Section 3(g)(ii) shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as and
when bills received or expenses, losses, damages, or liabilities are incurred.

(v) If the indemnification provided for in this Section 3(g) is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect to any loss,
liability, claim, damage or expense referred to herein, the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall (A) contribute to the amount paid or
payable by such indemnified party as a result of such loss, liability, claim, damage or
expense as is appropriate to reflect the proportionate relative fault of the indemnifying
party on the one hand and the indemnified party on the other (determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or
omission relates to information supplied by the indemnifying party or the indemnified party
and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission), or (B) if the allocation provided by
clause (A) above is not permitted by applicable law or provides a lesser sum to the
indemnified party than the amount hereinafter calculated, not only the proportionate
relative fault of the indemnifying party and the indemnified party, but also the relative
benefits received by the indemnifying party on the one hand and the indemnified party on the
other, as well as any other relevant equitable considerations. No indemnified party guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any indemnifying party who was not guilty of such
fraudulent misrepresentation.

(vi) Indemnification similar to that specified in the preceding subsections of this
Section 3(g) (with appropriate modifications) shall be given by the Company and the Investor
with respect to any required registration or other qualification of securities under any
federal or state law or regulation or governmental authority other than the Securities Act.

Section 4. Miscellaneous.

(a) Assignment of Rights; Successors and Permitted Assignees. The Investor may not
assign his rights under this Agreement to any party without the prior written consent of the
Company which shall not be unreasonably withheld. Except as otherwise provided herein, the
provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors,
permitted assignees, heirs, legatees, executors and administrators of the parties hereto.

(b) Notices. All notices or other communications which are required or permitted
under this Agreement shall be in writing and sufficient if delivered by hand, by facsimile
transmission, by registered or certified mail, postage pre-paid, by electronic mail, or by courier
or overnight carrier, to the persons at the addresses set forth below (or at such other address as
may be provided hereunder), and shall be deemed to have been delivered as of the date so delivered:

	 	 	 	 	 
	If to the Company:
	 	Joe’s Jeans Inc. (formerly Innovo Group Inc.)
	 
	 	Attn:  Dustin A. Huffine
	 
	 	5901 Eastern Avenue
	 
	 	Commerce, CA  90040
	 
	 	Facsimile:  (323) 837-3791
	 
	 	Phelps Dunbar LLP
	 
	 	Attn:  Christopher R. Maddux
	 
	 	111 East Capitol Street, Suite 600
	with a copy (which shall not
	 	Jackson, MS  39201
	constitute notice) to:
	 	Facsimile:  (601) 352-2300
	If to the Investor:
	 	Joseph M. Dahan
	 
	 	1810 Rising Glen Road
	 
	 	Los Angeles, CA 90069
	 
	 	Greenberg Traurig, LLP
	 
	 	Attn:  David P. Markman
	 
	 	2450 Colorado Avenue
	 
	 	Suite 400E
	with a copy (which shall not
	 	Santa Monica, CA 90404
	constitute notice) to:
	 	Facsimile:  (310) 586-7800

or at such other address as any party shall have furnished to the other party in writing.

(c) Specific Performance. Each party to this Agreement agrees that any breach by it
of any provision of this Agreement would irreparably injure the other party and that money damages
would be an inadequate remedy therefor. Accordingly, each party agrees that the other party shall
be entitled to one or more injunctions enjoining any such breach and requiring specific performance
of this Agreement and consents to the entry thereof, in addition to any other remedy to which such
other party is entitled at law or in equity.

(d) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be enforceable against the parties actually executing such counterparts, and all of
which together shall constitute one instrument.

(e) Amendments. The provisions of this Agreement may be amended at any time and from
time to time, and particular provisions of this Agreement may be waived, with and only with an
agreement or consent in writing signed by the Company and by the Investor.

(f) Headings and Cross References. The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement. Unless the context requires otherwise,
all cross references in this Agreement refer to sections and subsections of this Agreement.

(g) Severability. In the case any provision of this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

(h) Entire Agreement. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subject matter of this Agreement.

(i) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.

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

THE COMPANY:

JOE’S JEANS INC.

(formerly INNOVO GROUP INC.)

	 	 	 
	By:

	 	/s/ Marc B. Crossman
	 

	 	 
	Name:

	 	Marc B. Crossman
	
 
	 	 
	Title:

	 	President and CEO
	
 
	 	 

	 	 	INVESTOR:

/s/ Joseph M. Dahan

	 	 	Joseph M. DahanEX-10.1

PREPARED BY AND UPON

RECORDATION RETURN TO:

Samuel B. Stempel, Esq.

DLA Piper US LLP 

203 North LaSalle Street, Suite 1900 

Chicago, Illinois 60601

HINES REIT ONE WILSHIRE LP, as grantor/mortgagor

(Borrower)

to

FIRST AMERICAN TITLE INSURANCE COMPANY, as trustee

(Trustee)

for the benefit of

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as mortgagee/beneficiary

(Lender)

DEED OF TRUST AND

SECURITY AGREEMENT

	 	 	 	 	 
	 
	 	Dated:As of October ___, 2007
	Property Address:
	 	624 South Grand Avenue
	 
	 	Los Angeles, Los Angeles County, California
	 
	 	Loan Number:  706107618

1

TABLE OF CONTENTS

	 	 	 
	ARTICLE

	 	PAGE
	 

	 	 

	 	 	 	 	 	 	 	 	 
	ARTICLE I -OBLIGATIONS
	 	 	 	 	 		3	
	Section 1.01
	 	Obligations
	 		3	
	Section 1.02
	 	Documents
	 		3	
	ARTICLE II -REPRESENTATIONS AND WARRANTIES
	 		3	
	Section 2.01
	 	Title, Legal Status and Authority
	 		4	
	Section 2.02
	 	Validity of Documents
	 		4	
	Section 2.03
	 	Litigation
	 		4	
	Section 2.04
	 	Status of Property
	 		4	
	Section 2.05
	 	Tax Status of Borrower
	 		5	
	Section 2.06
	 	Bankruptcy and Equivalent Value
	 		5	
	Section 2.07
	 	Disclosure
	 		5	
	Section 2.08
	 	Illegal Activity
	 		5	
	Section 2.09
	 	OFAC Lists
	 		6	
	Section 2.10
	 	Single Asset Requirements
	 		6	
	ARTICLE III -COVENANTS AND AGREEMENTS
	 		6	
	Section 3.01
	 	Payment of Obligations
	 		6	
	Section 3.02
	 	Continuation of Existence
	 		6	
	Section 3.03
	 	Taxes and Other Charges
	 		7	
	Section 3.04
	 	Defense of Title, Litigation and Rights under Documents
	 		8	
	Section 3.05	 	Compliance With Laws and Operation and Maintenance of Property8
	Section 3.06
	 	Insurance
	 		9	
	Section 3.07
	 	Damage and Destruction of Property
	 		13	
	Section 3.08
	 	Condemnation
	 		15	
	Section 3.09
	 	Liens and Liabilities
	 		16	
	Section 3.10
	 	Tax and Insurance Deposits
	 		16	
	Section 3.11
	 	ERISA
	 		17	
	Section 3.12
	 	Environmental Representations, Warranties, and Covenants
	 		18	
	Section 3.13
	 	Intentionally Omitted.
	 		20	
	Section 3.14
	 	Inspection
	 		20	
	Section 3.15
	 	Records, Reports, and Audits.
	 		20	
	Section 3.16
	 	Borrower’s Certificates
	 		21	
	Section 3.17
	 	Additional Security
	 		22	
	Section 3.18
	 	Further Acts; Actions Not Performed
	 		22	
	Section 3.19
	 	Management
	 		22	
	Section 3.20
	 	Compliance With Anti-Terrorism Regulations
	 		23	
	Section 3.21
	 	Single Asset Covenant
	 		24	
	Section 3.22
	 	Intentionally Omitted.
	 		24	
	Section 3.23
	 	Full Performance Required; Survival of Warranties
	 		24	
	ARTICLE IV -ADDITIONAL ADVANCES; EXPENSES; SUBROGATION
	 		24	
	Section 4.01
	 	Expenses and Advances
	 		24	
	Section 4.02
	 	Subrogation
	 		24	
	ARTICLE V -SALE, TRANSFER, OR ENCUMBRANCE OF THE PROPERTY
	 		25	
	Section 5.01
	 	Due-on-Sale or Encumbrance
	 		25	
	Section 5.02
	 	Permitted Transfers of Interests in Borrower
	 		26	
	Section 5.03
	 	One-Time Transfer
	 		27	
	Section 5.04
	 	Rights Personal
	 		29	
	ARTICLE VI -DEFAULTS AND REMEDIES
	 	 	 	 	 		29	
	Section 6.01
	 	Events of Default
	 		29	
	Section 6.02
	 	Remedies
	 		31	
	Section 6.03
	 	Expenses
	 		32	
	Section 6.04
	 	Rights Pertaining to Sales
	 		32	
	Section 6.05
	 	Application of Proceeds
	 		33	
	Section 6.06
	 	Additional Provisions as to Remedies
	 		33	
	Section 6.07
	 	Waiver of Rights and Defenses
	 		34	
	ARTICLE VII -SECURITY AGREEMENT
	 	 	 	 	 		34	
	Section 7.01
	 	Security Agreement
	 		34	
	ARTICLE VIII -LIMITATION ON PERSONAL LIABILITY AND INDEMNITIES
	 		34	
	Section 8.01
	 	Limited Recourse Liability
	 		34	
	Section 8.02
	 	General Indemnity
	 		34	
	Section 8.03
	 	Transaction Taxes Indemnity
	 		35	
	Section 8.04
	 	ERISA Indemnity
	 		35	
	Section 8.05
	 	Environmental Indemnity
	 		35	
	Section 8.06
	 	Duty to Defend, Costs and Expenses
	 		35	
	Section 8.07
	 	Recourse Obligation and Survival
	 		35	
	ARTICLE IX -ADDITIONAL PROVISIONS
	 	 	 	 	 		36	
	Section 9.01
	 	Usury Savings Clause
	 		36	
	Section 9.02
	 	Notices
	 		36	
	Section 9.03
	 	Sole Discretion of Lender
	 		37	
	Section 9.04
	 	Applicable Law and Submission to Jurisdiction
	 		37	
	Section 9.05
	 	Construction of Provisions
	 		37	
	Section 9.06
	 	Transfer of Loan
	 		38	
	Section 9.07
	 	Miscellaneous
	 		39	
	Section 9.08
	 	Entire Agreement
	 		40	
	Section 9.09
	 	Concerning the Trustee
	 		40	
	Section 9.10
	 	Brokers
	 		40	
	Section 9.11
	 	Commingling of Funds
	 		40	
	Section 9.12
	 	Intentionally Omitted
	 		40	
	Section 9.13
	 	JURISDICTION
	 		40	
	Section 9.14
	 	Resolution of Disputes
	 		41	
	ARTICLE X -LOCAL LAW PROVISIONS
	 	 	 	 	 		42	
	Section 10.01
	 	State Specific Provisions
	 		42	

2

EXHIBITS

Exhibit A – Legal Description of Land

Exhibit B – Description of Personal Property

Exhibit C – Permitted Encumbrances

Exhibit D – List of Major Tenants

3

DEFINITIONS

The terms set forth below are defined in the following sections of this Deed of Trust and Security
Agreement:

	 	 	 
	Action

Additional Funds

Affecting the Property

Affiliate

All

Annual Budget

Any

Anti-Terrorism Regulations

Approved Annual Budget

Assessments

Assignment

Award

Bank 25 Average

Bank Monitor Rate

Bankruptcy Code

Borrower

Control

Costs

Damage

Debt Service Coverage Ratio

Default Rate

Demand

Deposits

Documents

Environmental Indemnity

Environmental Law

Environmental Liens

Environmental Report

ERISA

Event of Default

Executive Order 13224

Extraordinary Expense

Flood Acts

Foreign Person

General Partner

Grace Period

Hazardous Materials

Hines

Hines Affiliate

Hines Family Members

Hines REIT

Hines REIT Parent

Impositions

Improvements

Include, Including

Indemnified Parties

Indemnify

Instrument

Insurance Certificates

Insurance Premiums

Investors

Key Bank Loan

Land

Laws

Lease

Leases

Lender

Lessee

Lessor

Liens

Loan

Loan to Value Ratio

Losses

Major Tenants

Management Agreement

Microbial Matter

Microbial Matter Claims

Net Proceeds

NOI

Note

Notice

O&M Plan

Obligations

OFAC

OFAC Lists

OFAC Violation

On Demand

Organization State

Owned

PCBs

Permitted Encumbrances

Permitted Investor

Permitted Transfers

Person

Personal Property

Policy(ies)

Prepayment Premium

Property

Property State

Proposed Transferee

Provisions

Qualified Institutional Lender

Qualified Insurer

Qualified Manager

PTE

Rating Agency

Related Entity

Release

Rent Loss Proceeds

Rents

Restoration

Section 736

Securities

Security Agreement

Taking

Tenant

Tenants

Third Party Single Entity

Total Annual Debt Service

Transaction Taxes

Trustee

U.C.C.

Upon Demand

Violation

	 	Section 9.04

Section 3.07 (c)

Section 3.12 (a)

Section 2.09

Section 9.05 (m)

Section 3.15(a)(i)

Section 9.05 (m)

Section 3.20 (b)

Section 3.15 (a)(i)

Section 3.03 (a)

Recitals, Section 2 (B)

Section 3.08 (b)

Section 3.07 (b)

Section 3.07 (b)

Recitals, Section 2 (A) (ix)

Preamble

Section 2.09

Section 4.01

Section 3.07 (a)

Section 5.03

Section 1.01 (a)

Section 9.12 (n)

Section 3.10

Section 1.02

Section 8.05

Section 3.12 (a)

Section 3.12 (b)

Section 3.12 (a)

Section 3.11 (b)

Section 6.01

Section 2.09

Section 3.15 (a)(i)

Section 2.04 (a)

Section 2.05

Section 2.09

Section 6.01 (b)

Section 3.12 (a)

Section 2.09

Section 2.09

Section 5.02 (b)

Section 2.05

Section 5.02(a)

Section 3.10

Recitals, Section 2 (A) (ii)

Section 9.05 (f)

Section 8.02

Section 8.02

Preamble

Section 3.06 (d)

Section 3.06 (d)

Section 9.06

Section 5.02 (b)

Recitals, Section 2 (A) (i)

Section 3.05 (c)

Section 9.05 (k)

Recitals, Section 2 (A) (ix)

Preamble

Section 9.05 (k)

Section 9.05 (k)

Section 3.09

Recitals, Section 1

Section 5.03

Section 8.02

Section 3.08 (d)

Section 3.19 (a)

Section 3.12 (a)

Section 3.06 (c)

Section 3.07 (d)

Section 5.03

Recitals, Section 1

Section 9.02

Section 3.12 (b)

Section 1.01

Section 2.09

Section 2.09

Section 3.20 (c)

Section 9.05 (n)

Section 2.01

Section 9.05 (l)

Section 3.12 (a)

Recitals, Section 2 (B)

Section 5.02 (b)

Section 5.02 (a)

Section 9.05 (i)

Section 6.02 (j)

Section 3.06 (c)

Section 1.01 (a)

Recitals, Section 2 (A)

Section 2.1

Section 5.03 (a)

Section 9.05 (j)

Section 5.02 (b)

Section 3.06 (d)

Section 5.02(b)

Section 3.11 (a)

Section 9.06

Section 2.09

Section 3.12 (a)

Section 3.07 (c)

Recitals, Section 2 (A) (x)

Section 3.07 (a)

Section 10.01(j)

Section 9.06

Section 7.01

Section 3.08 (a)

Recitals, Section 2 (A) (vi)

Section 9.05 (k)

Section 5.03

Section 5.03

Section 3.03 (c)

Preamble, Section 9.05 (o)

Section 2.02

Section 9.05 (n)

Section 3.11

4

DEED OF TRUST AND SECURITY AGREEMENT

THIS DEED OF TRUST AND SECURITY AGREEMENT (this “Instrument”) is made as of the day of October,
2007, by HINES REIT ONE WILSHIRE LP, a Delaware limited partnership, having its principal office
and place of business ? Hines Interests Limited Partnership, 2800 Post Oak Boulevard, Houston,
Texas 77056, as grantor/mortgagor (“Borrower”), to FIRST AMERICAN TITLE INSURANCE COMPANY, a
California corporation, having an address at 135 Main Street, Suite 1200, San Francisco, California
94105, as trustee (“Trustee”), for the benefit of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, a
New Jersey corporation, having an office at 2200 Ross Avenue, Suite 4900-E, Dallas, Texas 75201, as
mortgagee/beneficiary (“Lender”).

RECITALS:

1. Borrower, by the terms of its Promissory Note executed on the same date as this Instrument
(“Note”) and in connection with the loan (“Loan”) from Lender to Borrower, is indebted to Lender in
the principal sum of ONE HUNDRED FIFTY-NINE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS
($159,500,000.00). The Note, if not paid sooner, shall mature on November 1, 2012.

2. Borrower desires to secure the payment of and the performance of all of its obligations under
the Note and certain additional Obligations (as defined in Section 1.01).

IN CONSIDERATION of the principal sum of the Note, and other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, Borrower irrevocably:

A. Grants, bargains, sells, assigns, transfers, pledges, mortgages, warrants, and conveys to
Trustee, for the benefit of Lender, and grants Trustee and Lender a security interest in, the
following property, rights, interests and estates owned by Borrower (collectively, the “Property”):

(i) The real property in Los Angeles County, California and described in Exhibit A
(“Land”);

(ii) All buildings, structures and improvements (including fixtures) owned by Borrower and now
or later located in or on the Land (“Improvements”);

(iii) All right title and interest of Borrower in and to all easements, estates, and interests
including hereditaments, servitudes, appurtenances, tenements, mineral and oil/gas rights, water
rights, air rights, development power or rights, options, reversion and remainder rights, and any
other rights owned by Borrower and relating to or usable in connection with the Property or access
thereto;

(iv) All right, title, and interest owned by Borrower in and to all land lying within the
rights-of-way, roads, or streets, open or proposed, adjoining the Land to the center line thereof;
and all sidewalks, alleys, and strips and gores of land adjacent to or used in connection with the
Property;

(v) All right, title, and interest of Borrower in, to, and under all plans, specifications,
surveys, studies, reports, permits, licenses, agreements, contracts, instruments, books of account,
insurance policies, and any other documents relating to the use, construction, occupancy, leasing,
activity, or operation of the Property;

(vi) All of the fixtures and personal property described in Exhibit B owned by
Borrower and replacements thereof; but excluding all personal property owned by any tenant (a
“Tenant”) of the Property;

(vii) All of Borrower’s right, title and interest in the proceeds (including conversion to
cash or liquidation claims) of (A) insurance relating to the Property and (B) all awards made for
the taking by eminent domain (or by any proceeding or purchase in lieu thereof ) of the Property,
including awards resulting from a change of any streets (whether as to grade, access, or otherwise)
and for severance damages;

(viii) All right, title and interest of Borrower in and to all tax refunds, including interest
thereon, tax rebates, tax credits, and tax abatements, and the right to receive the same, which may
be payable or available with respect to the Property;

(ix) All leasehold estates, ground leases, leases (to the extent of Borrower’s interest
therein), subleases (to the extent of Borrower’s interest therein), licenses, or other agreements
affecting the use, enjoyment or occupancy of the Property now or later existing (including any use
or occupancy arrangements created pursuant to Title 7 or 11 of the United States Code, as amended
from time to time, or any similar federal or state laws now or later enacted for the relief of
debtors (the “Bankruptcy Code”) and all extensions and amendments thereto (collectively, the
“Leases”) and all of Borrower’s right, title and interest under the Leases, including all
guaranties thereof;

(x) All of Borrower’s right, title and interest in and to all rents, issues, profits,
royalties, receivables, use and occupancy charges (including all right, title and interest of
Borrower in and to all oil, gas or other mineral royalties and bonuses), income and other benefits
now or later derived from any portion or use of the Property (including any payments received with
respect to any Tenant or the Property pursuant to the Bankruptcy Code) and all cash, security
deposits, advance rentals, or similar payments relating thereto (collectively, the “Rents”) and all
proceeds from the cancellation, termination, surrender, sale or other disposition of the Leases,
and the right to receive and apply the Rents to the payment of the Obligations;

(xi) All of Borrower’s rights and privileges heretofore or hereafter otherwise arising in
connection with or pertaining to the Property, including, without limiting the generality of the
foregoing, all of Borrower’s right, title and interest in and to all water and/or sewer capacity,
all water, sewer and/or other utility deposits or prepaid fees, and/or all water and/or sewer
and/or other utility tap rights or other utility rights, any right or privilege of Borrower under
any loan commitment, lease, contract, declaration of covenants, restrictions and easements or like
instrument, developer’s agreement, or other agreement with any third party pertaining to the
ownership, development, construction, operation, maintenance, marketing, sale or use of the
Property;

(i) Any and all Deposits (as hereinafter defined); and

(ii) All right, title and interest of Borrower in and to all oil, gas and other hydrocarbons
and other minerals produced from or allocated to the Property and all products processed or
obtained therefrom, the proceeds thereof, and all accounts and general intangibles under which such
proceeds may arise, together with any sums of money that may now or at any time hereafter become
due and payable to Borrower by virtue of any and all royalties, overriding royalties, bonuses delay
rentals and any other amount of any kind or character arising under any and all present and future
oil, gas and mineral leases covering the Property or any part thereof.

B. Absolutely and unconditionally assigns, sets over, and transfers to Lender all of Borrower’s
right, title, interest and estates in and to the Leases and the Rents, subject to the terms and
license granted to the Borrower under that certain Assignment of Leases and Rents made by Borrower
to Lender dated the same date as this Instrument (the “Assignment”), which document shall govern
and control the provisions of this assignment.

TO HAVE AND TO HOLD the Property unto Lender and Trustee, and their successors and assigns forever,
subject to the matters listed in Exhibit C (“Permitted Encumbrances”) and the provisions,
terms and conditions of this Instrument.

IN TRUST, WITH POWER OF SALE, to secure payment and performance of the Obligations in the time and
manner set forth in the Documents (defined below).

PROVIDED, HOWEVER, if Borrower shall pay and perform the Obligations as provided for in the
Documents, these presents and the estates hereby granted (except for the obligations of Borrower
set forth in Sections 3.11 and 3.12 and Article VIII hereof) shall cease, terminate and be void.

IN FURTHERANCE of the foregoing, Borrower warrants, represents, covenants and agrees as follows:

ARTICLE I — OBLIGATIONS

Section 1.01 Obligations. This Instrument is executed, acknowledged, and delivered by Borrower to
secure and enforce the following obligations (collectively, the “Obligations”):

(a) Payment of all obligations, indebtedness and liabilities under the Documents including (i)
the Prepayment Premium, as and when applicable (as defined in the Note) (“Prepayment Premium”),
(ii) interest at both the rate specified in the Note and at the Default Rate (as defined in the
Note), if applicable and to the extent permitted by Laws (defined below), and (iii) renewals,
extensions, and amendments of the Documents;

(b) Performance of every obligation, covenant, and agreement under the Documents including
renewals, extensions, and amendments of the Documents as and when required to be performed
thereunder; and

(c) Payment of all sums advanced (including costs and expenses) by Lender pursuant to the
Documents including renewals, extensions, and amendments of the Documents.

Section 1.02 Documents. The “Documents” shall mean this Instrument, the Note, the Assignment, and
any other written agreement executed by Borrower in connection with the Loan, including those given
to evidence or further secure the payment and performance of any of the Obligations, and any
written renewals, extensions, and amendments of the foregoing, executed by Borrower. All of the
provisions of the Documents are incorporated into this Instrument as if fully set forth in this
Instrument.

ARTICLE II — REPRESENTATIONS AND WARRANTIES

Borrower hereby represents and warrants to Lender as follows:

Section 2.01 Title, Legal Status and Authority. Borrower (i) is seised of the Land and
Improvements in fee simple and has good and marketable title to the Property, free and clear of all
liens, charges, encumbrances, and security interests, except the Permitted Encumbrances; (ii) will
forever warrant and defend its title to the Property and the validity, enforceability, and priority
of the lien and security interest created by this Instrument against the claims of all persons,
subject, however, to the Permitted Encumbrances; (iii) is a limited partnership duly organized or
formed, validly existing, and in good standing and qualified to transact business under the laws of
its state of organization or incorporation (“Organization State”) and the state where the Property
is located (“Property State”); and (iv) has all necessary approvals, governmental and otherwise,
and full power and authority to own its properties (including the Property) and carry on its
business.

Section 2.02 Validity of Documents. The execution, delivery and performance of the Documents and
the borrowing evidenced by the Note (i) are within the partnership power of Borrower and the
corporate, partnership or limited liability company power of all other parties executing same on
its behalf; (ii) have been authorized by all requisite corporate, partnership or limited liability
company action; (iii) have received all necessary approvals and consents; (iv) to its knowledge,
will not violate, conflict with, breach, or constitute (with notice or lapse of time, or both) a
default under any law, order or judgment of any court or governmental authority; (v) will not
violate, conflict with, breach, or constitute (with notice or lapse of time, or both) a default
under the governing instrument of Borrower or any indenture, agreement, or other instrument to
which Borrower is a party or by which it or any of its property is bound or affected; (vi) will not
result in the creation or imposition of any lien, charge, or encumbrance upon any of its properties
or assets except for those liens, charges and encumbrances created by this Instrument or the other
Documents; and (vii) will not require any authorization or license from, or any filing with, any
governmental or other body (except for the recordation of this Instrument, the Assignment and
Uniform Commercial Code (“U.C.C.”) filings). The Documents constitute legal, valid, and binding
obligations of Borrower subject to applicable bankruptcy and insolvency laws and similar laws and
doctrines affecting the rights of creditors generally and to general principles of equity.

Section 2.03 Litigation. There is no action, suit, or proceeding, judicial, administrative, or
otherwise (including any condemnation or similar proceeding), pending or, to the knowledge of
Borrower, threatened or contemplated against, or affecting, Borrower or the Property which would
have a material adverse effect on either the Property or Borrower’s ability to perform its
obligations.

Section 2.04 Status of Property.

(a) The Land and Improvements are not located in an area identified by the Secretary of
Housing and Urban Development, or any successor, as an area having special flood hazards pursuant
to the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, or the
National Flood Insurance Reform Act of 1994, as each have been or may be amended, or any successor
law (collectively, the “Flood Acts”) or, if located within any such area, Borrower has and will
maintain the insurance prescribed in Section 3.06 below.

(b) To Borrower’s knowledge, Borrower has all necessary (i) certificates, licenses, and other
approvals, governmental and otherwise, for the operation of the Property and the conduct of its
business and (ii) zoning, building code, land use, environmental and other similar permits or
approvals, all of which are currently in full force and effect and not subject to revocation,
suspension, forfeiture, or modification. The Property and its use and occupancy is in compliance
in all material respects with all Laws and Borrower has received no notice of any violation or
potential violation of the Laws which has not been remedied or satisfied.

(c) The Property is served by all utilities (including water and sewer) required for its
current use.

(d) All public roads and streets necessary to serve the Property for its use have been
completed, are serviceable, are legally open, and, to Borrower’s knowledge, have been dedicated to
and accepted by the appropriate governmental entities.

(e) To Borrower’s knowledge, the Property is free from unrepaired damage caused by fire or
other casualty.

(f) To Borrower’s knowledge, all costs and expenses for labor, materials, supplies, and
equipment used in the construction of the Improvements have been paid in full except as reflected
in the Permitted Encumbrances.

(g) All costs and expenses for all furnishings, fixtures, and equipment (other than Tenants’
property) used in connection with the operation of the Property that are owned by Borrower have
been paid in full, and all such items are free of all security interests, liens, or encumbrances
except the Permitted Encumbrances and those created by this Instrument.

(h) The Property is assessed for real estate tax purposes as one or more wholly independent
tax lot(s), separate from any adjoining land or improvements and no other land or improvements is
assessed and taxed together with the Property.

(i) The Property is not used principally for agricultural purposes.

Section 2.05 Tax Status of Borrower. Neither Borrower nor its limited partner, Hines REIT
Properties, L.P., a Delaware limited partnership (“Hines REIT”), is a “foreign person” within the
meaning of Sections 1445 and 7701 of the Internal Revenue Code of 1986, as amended, and the
regulations thereunder. Borrower further represents and warrants that (i) Borrower is a
disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations issued
under the Code, and (ii) Borrower’s limited partner, Hines REIT, is not a disregarded entity as
defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations issued under the Code.

Section 2.06 Bankruptcy and Equivalent Value. No bankruptcy, reorganization, insolvency,
liquidation, or other proceeding for the relief of debtors has been instituted by or against
Borrower, any general partner of Borrower (if Borrower is a partnership), or any manager or
managing member of Borrower (if Borrower is a limited liability company), within the ten (10) year
period prior to the date hereof. Borrower has received reasonably equivalent value for granting
this Instrument.

Section 2.07 Disclosure. Borrower has disclosed to Lender all material facts and has not failed to
disclose any material fact that could cause any representation or warranty made herein to be
materially misleading. To the best of Borrower’s knowledge, there has been no adverse change in
any condition, fact, circumstance, or event that would make any such information materially
inaccurate, incomplete or otherwise misleading.

Section 2.08 Illegal Activity. To Borrower’s knowledge, no portion of the Property has been
purchased, improved, fixtured, equipped or furnished with proceeds of any illegal activity. No
portion of the Property will be purchased, improved, fixtured, equipped or furnished with proceeds
of any illegal activity and, to the best of Borrower’s knowledge, there are no illegal activities
at or on the Property.

Section 2.09 OFAC Lists. That (i) neither Borrower, any general partner of Borrower, nor any other
wholly owned Hines Affiliate which owns any legal or beneficial interest in Borrower, directly or
indirectly, is (and to Borrower’s knowledge, no other person holding any legal or beneficial
interest whatsoever in Borrower, directly or indirectly, is) included in, owned by, Controlled by,
acting for or on behalf of, providing assistance, support, sponsorship, or services of any kind to,
or otherwise associated with any of the persons referred to or described in any list of persons,
entities, and governments issued by the Office of Foreign Assets Control of the United States
Department of the Treasury (“OFAC”) pursuant to Executive Order 13224 – Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, as
amended (“Executive Order 13224”), or any similar list issued by OFAC or any other department or
agency of the United States of America (collectively, the “OFAC Lists”), and (ii) none of the
Related Entities are Controlled by, acting for or on behalf of, providing assistance, support,
sponsorship, or services of any kind to, or otherwise associated with any of the persons referred
to or described in any list of persons, entities, and governments issued by OFAC pursuant to
Executive Order 13224, or any other OFAC Lists. For purposes hereof, the following terms shall
have the following meanings:

“Affiliate”: As to any person, any other person that, directly or indirectly, is in
Control of, is Controlled by or is under common Control with such person.

“Control”: The power to direct the management and policies of a person, whether
through the ability to exercise voting power, by contract or otherwise, including the customary
powers of a managing member of any limited liability company or any general partner of any limited
partnership or any board of directors of any corporation or trust conferred by applicable law.

“General Partner”: Hines REIT One Wilshire GP LLC, a Delaware limited liability
company.

“Hines”: Hines Interests Limited Partnership, a Delaware limited partnership.

“Hines Affiliate”: An Affiliate of Hines.

“Related Entity”: Collectively, Borrower, General Partner, Hines REIT and Hines REIT
Parent (as such term is defined in Section 5.02).

Section 2.10 Single Asset Requirements. (i) Borrower’s only asset is the Property, (ii) during the
term of the Loan, Borrower shall not own any assets in addition to the Property, (iii) the Property
shall remain as a single property or project, (iv) the Property generates substantially all of the
gross income of the Borrower and there is no substantial business being conducted by the Borrower
other than the business of operating the Property and the activities incidental thereto.

ARTICLE III — COVENANTS AND AGREEMENTS

Borrower covenants and agrees with Lender as follows:

Section 3.01 Payment of Obligations. Borrower shall timely pay and cause to be performed the
Obligations.

Section 3.02 Continuation of Existence. Borrower shall not (a) dissolve, terminate, or otherwise
dispose of, directly, indirectly or by operation of law, all or substantially all of its assets;
(b) except for Permitted Transfers accomplished in accordance with Section 5.02 and certain
transfers of limited partner interests permitted in Section 5.01, reorganize or change its legal
structure without Lender’s prior written consent; (c) change its name, address, or the name under
which Borrower conducts its business without promptly notifying Lender; or (d) do anything to cause
the representations in Section 2.01 to become untrue.

Section 3.03 Taxes and Other Charges.

(a) Payment of Assessments. Subject to Section 3.03(b) and Section 3.10 (if
applicable), Borrower shall pay when due all taxes, liens, assessments, utility charges (public or
private and including sewer fees), ground rents, maintenance charges, dues, fines, impositions, and
governmental and other charges of any character (including penalties and interest) assessed
against, or which could become a lien against, the Property (“Assessments”) prior to the date any
fine, penalty, interest or charge for nonpayment may be imposed. Unless Borrower is making
deposits per Section 3.10, Borrower shall provide Lender with receipts evidencing such payments
(except for income taxes, franchise taxes, maintenance charges, and utility charges) within thirty
(30) days after their due date.

(b) Right to Contest. So long as no Event of Default (defined below) is continuing,
Borrower may, prior to delinquency and at its sole expense, contest any Assessment, but this shall
not change or extend Borrower’s obligation to pay the Assessment as required above unless (i)
Borrower gives Lender prior written notice of its intent to contest an Assessment; (ii) Borrower
demonstrates to Lender’s reasonable satisfaction that (A) the Property will not be sold to satisfy
the Assessment prior to the final determination of the legal proceedings, (B) Borrower has taken
such actions as are required or permitted to accomplish a stay of any such sale, and (C) Borrower
has furnished a bond or surety (satisfactory to Lender in form and amount) sufficient to prevent a
sale of the Property; (iii) at Lender’s option, unless Borrower has furnished the bond or surety
pursuant to (ii)(C) above, Borrower has deposited the full amount necessary to pay any unpaid
portion of the Assessments with Lender; and (iv) such proceeding shall be permitted under any other
instrument to which Borrower or the Property is subject (whether superior or inferior to this
Instrument); provided, however, that the foregoing shall not apply to the contesting of any income
taxes, franchise taxes, maintenance charges, and utility charges, which Borrower may contest at its
option without fulfilling any of the foregoing requirements.

(c) Documentary Stamps and Other Charges. Borrower shall pay all taxes, assessments,
charges, expenses, costs and fees (including registration and recording fees and revenue, transfer,
stamp, intangible, indebtedness and any similar taxes) (collectively, the “Transaction Taxes”)
required in connection with the making and/or recording of the Documents. If Borrower fails to pay
the Transaction Taxes after demand, Lender may (but is not obligated to) pay the same and Borrower
shall reimburse Lender on demand for any amount so paid with interest at the applicable interest
rate specified in the Note, which shall be the Default Rate unless prohibited by Laws.

(d) Changes in Laws Regarding Taxation. If any law (i) deducting or allowing Borrower
to deduct from the value of real property for the purpose of taxation any lien or encumbrance
thereon (and resulting in any additional liability of Lender), (ii) taxes deeds of trust or debts
secured by deeds of trust for federal, state or local purposes or changes the manner of the
collection of any such existing taxes, and/or (iii) imposes a tax, either directly or indirectly,
on any of the Documents or the Obligations, Borrower shall, if permitted by law, pay such tax
within the statutory period or within thirty (30) days after demand by Lender, whichever is less;
provided, however, that if, in the good faith opinion of Lender, Borrower is not permitted by law
to pay such taxes, Lender shall have the option to declare the Obligations immediately due and
payable (without any Prepayment Premium) upon sixty (60) days’ notice to Borrower.

(e) No Credits on Account of the Obligations. Borrower will not claim or be entitled
to any credit(s) on account of the Obligations for any part of the Assessments, and no deduction
shall be made or claimed from the taxable value of the Property for real estate tax purposes by
reason of the Documents or the Obligations. If such claim, credit or deduction is required by law,
Lender shall have the option to declare the Obligations immediately due and payable (without any
Prepayment Premium) upon sixty (60) days’ notice to Borrower.

Section 3.04 Defense of Title, Litigation and Rights under Documents. Subject in all cases to the
Permitted Encumbrances, Borrower shall forever warrant, defend and preserve Borrower’s title to the
Property, the validity, enforceability and priority of this Instrument and the lien or security
interest created thereby, and any rights of Lender and/or Trustee under the Documents against the
claims of all persons, and shall promptly notify Lender and Trustee of any such claims. Lender
and/or Trustee (whether or not named as a party to such proceedings) is authorized and empowered
(but shall not be obligated) to take such additional steps as it may deem necessary or proper for
the defense of any such proceeding or the protection of the lien, security interest, validity,
enforceability, or priority of this Instrument, title to the Property, or any rights of Lender
and/or Trustee under the Documents, including the employment of counsel, the prosecution and/or
defense of litigation, the compromise, release, or discharge of such adverse claims, the purchase
of any tax title, the removal of any such liens and security interests, and any other actions
Lender and/or Trustee deems necessary to protect its or their interests. Borrower authorizes
Lender and/or Trustee to take any actions (i) required to be taken by Borrower that are not taken
by Borrower within the time periods specified herein (or if no time period is specified, within a
reasonable time period after Lender’s notice to Borrower that such action has not been taken;
provided that no such notice shall be required in the event of an emergency or if Lender determines
that its security is at risk), or (ii) permitted to be taken by Lender and/or Trustee, in the
Documents in the name and on behalf of Borrower. Borrower shall reimburse Lender and Trustee on
demand for all reasonable expenses (including attorneys’ fees) incurred by Lender in connection
with the foregoing and Lender’s or Trustee’s exercise of its or their rights under the Documents.
All such reasonable expenses of Lender and/or Trustee, until reimbursed by Borrower, shall be part
of the Obligations, bear interest from the date of demand at the applicable interest rate specified
in the Note, which shall be the Default Rate unless prohibited by Laws, and shall be secured by
this Instrument.

Section 3.05 Compliance With Laws and Operation and Maintenance of Property.

(a) Repair and Maintenance. Borrower will operate and maintain or cause the
applicable Tenants to operate and maintain the Property in good order, repair, and operating
condition. Borrower will promptly make, or cause its Tenants to make, all necessary repairs,
replacements, additions, and improvements necessary to maintain the Property in good order, repair
and operating condition. Borrower will not knowingly cause or allow any of the Property to be
misused, materially or physically wasted, or to deteriorate (other than normal wear and tear) and
Borrower will not abandon the Property. No new building or structure shall be constructed on the
Land without Lender’s prior written consent.

(b) Replacement of Property. Borrower will keep, or use commercially reasonable
efforts to cause Tenants to keep, the Property fully equipped and will replace, or, if the
responsibility of a Tenant under its Lease, use commercially reasonable efforts to cause its
Tenants to replace, all worn out or obsolete personal property with new, comparable fixtures or
personal property. Borrower will not, without Lender’s prior written consent, remove any personal
property covered by this Instrument that is material to the ownership, operation or value of the
Property unless the same is replaced by Borrower with a new, comparable article (i) owned by
Borrower free and clear of any lien or security interest (other than the Permitted Encumbrances and
those created by this Instrument) or (ii) leased by Borrower (A) with Lender’s prior written
consent or (B) if the replaced personal property was leased at the time of execution of this
Instrument.

(c) Compliance with Laws. Borrower shall comply with and shall cause the Property to
be maintained, used, and operated in compliance with all of the following (collectively, the
“Laws”) (i) present and future laws, Environmental Laws (defined below), ordinances, regulations,
rules, orders and requirements (including zoning and building codes) of any governmental or
quasi-governmental authority or agency applicable to Borrower or the Property; (ii) orders,
rules, and regulations of any regulatory, licensing, accrediting, insurance underwriting or rating
organization, or other body exercising similar functions; (iii) duties or obligations of any kind
imposed under any Permitted Encumbrance or by law, covenant, condition, agreement, or easement,
public or private; and (iv) policies of insurance at any time in force with respect to the
Property. If Borrower receives notice that proceedings have been initiated or Borrower receives
notice that Borrower or the Property is not in compliance with any of the foregoing, Borrower will
promptly send Lender notice and a copy of the proceeding or violation notice. Without limiting
Lender’s rights and remedies under Article VI or otherwise, if Borrower or the Property is not in
compliance with all Laws, Lender may impose additional requirements upon Borrower including
monetary reserves or financial equivalents; provided that Borrower shall be afforded a reasonable
opportunity (not to exceed thirty (30) days) to bring the Property into compliance, if possible,
prior to the imposition of such reserves or financial equivalents.

(d) Zoning and Title Matters. Borrower shall not, without Lender’s prior written
consent, (i) initiate or support any zoning reclassification of the Property or variance under
existing zoning ordinances; (ii) modify or supplement any of the Permitted Encumbrances; (iii)
impose any restrictive covenants or encumbrances upon the Property; (iv) execute or file any
subdivision plat affecting the Property; (v) consent to the annexation of the Property to any
municipality; (vi) permit the Property to be used by the public or any person in a way that might
(upon reasonable consideration) make a claim of adverse possession or any implied dedication or
easement possible; (vii) cause or permit the Property to become a non-conforming use under zoning
ordinances or any present or future non-conforming use of the Property to be discontinued; or
(viii) fail to comply with the terms of the Permitted Encumbrances.

(e) Alterations. Lender’s prior approval (which will not be unreasonably withheld)
shall be required in connection with any alterations to any Improvements (except (i) tenant
improvements under any Lease approved or deemed approved by Lender and (ii) any improvements
permitted under any Lease without the Landlord’s approval) that may have a material adverse effect
on Borrower’s financial condition, the value of the Property and/or the ongoing revenues and
expenses of the Property.

Section 3.06 Insurance.

(a) Borrower shall obtain and maintain, or cause to be maintained, at all times insurance for
Borrower and the Property providing at least the following coverages:

(i) comprehensive “all risk” insurance on the Improvements and the Personal Property,
in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement
Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive
of costs of excavations, foundations, underground utilities and footings) with a waiver of
depreciation; (B) containing either no co-insurance provisions or an agreed amount
endorsement with respect to the Improvements and Personal Property waiving all coinsurance
provisions; (C) providing for no deductible in excess of $100,000 for all such insurance
coverage; and (D) if any of the Improvements or the use of the Property shall at any time
constitute legal non-conforming structures or uses, providing coverage for contingent
liability from Operation of Building Laws, Demolition Costs and Increased Cost of
Construction Endorsements and containing an “Ordinance or Law Coverage” or “Enforcement”
endorsement. In addition, Borrower shall obtain: (y) if any portion of the Improvements is
currently or at any time in the future located in a “special flood hazard area” designated
by the Federal Emergency Management Agency, flood hazard insurance in an amount equal to the
maximum amount of such insurance available under the National Flood Insurance Act of 1968,
the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of
1994, as each may be amended; and (z) earthquake insurance in amounts and in form and
substance reasonably satisfactory to Lender in the event the Property is located in an area
with a high degree of seismic risk, provided that (1) the insurance pursuant to clauses (y)
and (z) hereof shall be on terms consistent with the comprehensive all risk insurance policy
required under this subsection (i) and (2) in any event, Borrower shall only be required to
maintain coverage for earthquake insurance to the extent and at the level obtainable at an
annual premium not to exceed $48,000;

(ii) Commercial General Liability insurance against claims for personal injury, bodily
injury, death or property damage occurring upon, in or about any of the Property, with such
insurance (A) to be on the so-called “occurrence” form with a general aggregate limit of not
less than $2,000,000 and a per occurrence limit of not less than $1,000,000; (B) to continue
at not less than the aforesaid limit until required to be changed by Lender in writing by
reason of changed economic conditions making such protection inadequate; and (C) to cover at
least the following hazards: (1) premises and operations; (2) products and completed
operations; (3) independent contractors; (4) blanket contractual liability; and
(5) contractual liability covering the indemnities contained in Sections 8.3, 8.4 and 8.5 to
the extent the same is available;

(iii) loss of rents insurance or business income insurance, as applicable, (A) with
loss payable to Lender; (B) covering all risks required to be covered by the insurance
provided for in subsection (i) above; (C) which provides that after the physical loss to the
Improvements and Personal Property occurs, the loss of rents or income, as applicable, will
be insured until completion of Restoration or the expiration of not less than twelve (12)
months, whichever first occurs, and notwithstanding that the policy may expire prior to the
end of such period; and (D) which contains an extended period of indemnity endorsement which
provides that after the physical loss to the Improvements and Personal Property has been
repaired, the continued loss of income will be insured until such income either returns to
the same level it was at prior to the loss, or the expiration of six (6) months from the
date that any Individual Property is repaired or replaced and operations are resumed,
whichever first occurs, and notwithstanding that the policy may expire prior to the end of
such period. The amount of such loss of rents or business income insurance, as applicable,
shall be determined prior to the date hereof and at least once each year thereafter based on
Borrower’s reasonable estimate of the gross income from each Individual Property for the
succeeding period of coverage required above. All proceeds payable to Lender pursuant to
this subsection shall be held by Lender in an interest bearing account (with interest
accruing at the Bank Monitor Rate) and provided no Event of Default exists hereunder, shall
be disbursed (a) only to the extent necessary to fully make the disbursements required to
pay when due (i) any Deposits (defined below), to the extent applicable, (ii) the next
regularly scheduled payment of principal and interest under the Note, (iii) all other
obligations then due and payable under the Documents, (iii) provided no Event of Default
shall have occurred, operating expenses of the Property for the next calendar month, normal
and customary capital expenditures at the Property for the next calendar month, and any
other expenses incurred by Borrower and directly related to the Property and (b) only to the
extent it reflects a replacement for (i) lost Rents that would have been due under Leases
existing on the date of the Damage, and/or (ii) lost Rents under Leases that had not yet
been executed and delivered at the time of such Damage which Borrower has proven to the
insurance company would have been due under such Leases (and then only to the extent such
proceeds disbursed by the insurance company reflect a replacement for such past due Rents).
All other such proceeds shall be held by Lender and disbursed in accordance with
Section 3.07 hereof and shall be applied to the obligations secured by the Documents from
time to time due and payable hereunder and under the Note; provided, however, that nothing
herein contained shall be deemed to relieve Borrower of its obligations to pay the
obligations secured by the Documents on the respective dates of payment provided for in the
Note, this Instrument and the other Documents except to the extent such amounts are actually
paid out of the proceeds of such loss of rents or business income insurance, as applicable;

(iv) at all times during which structural construction, repairs or alterations are
being made with respect to the Improvements, and only if the Property coverage form does not
otherwise apply, (A) owner’s contingent or protective liability insurance covering claims
not covered by or under the terms or provisions of the above mentioned commercial general
liability insurance policy; and (B) the insurance provided for in subsection (i) above
written in a so-called Builder’s Risk Completed Value form (1) on a non-reporting basis,
(2) against “all risks” insured against pursuant to subsection (i) above, (3) including
permission to occupy the Property, and (4) with either no coinsurance provisions or an
agreed amount endorsement waiving co-insurance provisions;

(v) to the extent Borrower has employees, workers’ compensation, subject to the
statutory limits of the Property State, and employer’s liability insurance in respect of any
work or operations on or about the Property, or in connection with the Property or its
operation (if applicable);

(vi) comprehensive boiler and machinery insurance, if applicable, in amounts as shall
be reasonably required by Lender on terms consistent with the commercial property insurance
policy required under subsection (i) above;

(vii) excess liability insurance in an amount not less than $10,000,000 per occurrence
on terms consistent with the commercial general liability insurance required under
subsection (ii) above; and

(viii) upon sixty (60) days’ written notice, such other reasonable insurance and in
such reasonable amounts as Lender from time to time may reasonably request against such
other insurable hazards which at the time are commonly insured against for property similar
to the Property located in or around the region in which the Property is located.

(b) The Policies required to be maintained pursuant to clauses (i) through (viii) above shall
not contain an exclusion for acts of terrorism or other similar acts or events. In the event that
“acts of terrorism” or other similar acts or events are hereafter excluded from such Policies,
Borrower shall obtain an endorsement to such Policies, or a separate policy insuring against all
“certified acts of terrorism” as defined in the Terrorism Risk Insurance Act of 2002, to the extent
such policy or endorsement is commercially available; provided, however, that
Borrower shall only be required to maintain such coverage to the extent and at the level obtainable
at an annual premium not to exceed $30,000. The endorsement or policy shall be in form and
substance and provide such coverages as are acceptable to Lender.

(c) The Policies required to be maintained pursuant to clauses (i) through (viii) above shall
not contain an exclusion for claims applicable to the presence of Microbial Matter (“Microbial
Matter Claims”). In the event that Microbial Matter Claims are hereafter excluded from such
Policies, Borrower shall obtain an endorsement to such Policies, or a separate policy insuring
against Microbial Matter Claims to the extent such policy or endorsement is commercially available;
provided, however, that Borrower shall only be required to maintain such coverage
to the extent and at the level obtainable at a three (3) year premium not to exceed $20,000. The
endorsement or policy shall be in form and substance and provide such coverages as are acceptable
to Lender and shall not provide for a deductible in excess of $25,000.

(d) All insurance provided for in Section 3.06(a) above shall be obtained under valid and
enforceable policies (collectively, the “Policies” or in the singular, the “Policy”), conforming to
the requirements of this section. The Policies shall be issued by financially sound and
responsible insurance companies authorized to do business in the Property State and having a claims
paying ability rating of “A-, X” or better by A.M. Best or equivalent (or if a rating by A.M. Best
is no longer available a similar rating from a similar or successor service) (each, a “Qualified
Insurer”). The Policies described in Section 3.06(a) above shall designate Lender and its
successors and assigns as additional insureds, mortgagees and/or loss payee as appropriate. Not
less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to
Lender, Borrower shall deliver to Lender certificates evidencing renewal of the Policies (such
certificates, the “Insurance Certificates”) accompanied by evidence satisfactory to Lender of
payment of the premiums due with respect to the Policies (the “Insurance Premiums”), and within
sixty (60) days after the expiration dates of such Policies, Borrower shall deliver to Lender,
copies of renewal Policies. Notwithstanding anything to the contrary contained herein, Lender
shall accept an “all-risk” Policy described in Section 3.06(a)(i) above and/or a Policy described
in Section 3.06(b) above issued by Factory Mutual Insurance Company (“Factory Mutual”); provided
that the ratings assigned to Factory Mutual by A.M. Best Company, Inc. and Fitch do not fall below
the following ratings: “A-, X” from A. M. Best or equivalent (or if a rating by A.M. Best is no
longer available, a similar rating from a similar or successor service).

(e) Any blanket insurance Policy shall specifically allocate to the Property the amount of
coverage from time to time required hereunder and shall otherwise provide the same protection as
would a separate Policy insuring only the Property in compliance with the provisions of Section
3.06(a).

(f) All Policies provided for or contemplated by Section 3.06(a), except for the Policy
referenced in Section 3.06(a)(v), shall name Borrower as the insured and Lender as the additional
insured, as its interests may appear, and in the case of property damage, boiler and machinery,
flood and earthquake insurance, shall contain a so-called New York standard non-contributing
mortgagee clause (or a clause containing substantially the same terms and conditions) in favor of
Lender providing that the loss thereunder shall be payable to Lender.

(g) All Policies provided for in Section 3.06(a) shall contain clauses or endorsements to the
effect that:

(i) except with respect to the Policies required to be maintained under Sections
3.06(a)(ii), (v) and (vii), no act or negligence of Borrower, or anyone acting for Borrower,
or of any Tenant or other occupant, or failure to comply with the provisions of any Policy,
which might otherwise result in a forfeiture of the insurance or any part thereof, shall in
any way affect the validity or enforceability of the insurance insofar as Lender is
concerned;

(ii) the Policies shall not be materially changed with respect to any of the coverage
required to be maintained hereunder (other than to increase the coverage provided thereby)
or canceled without at least thirty (30) days’ prior written notice to Lender and any other
party named therein as an additional insured (except that only 10 days prior written notice
shall be required for cancellation due to non-payment of premiums);

(iii) the issuers thereof shall give written notice to Lender if the Policies have not
been renewed thirty (30) days prior to its expiration; and

(iv) Lender shall not be liable for any Insurance Premiums thereon or subject to any
assessments thereunder.

(h) If at any time Lender is not in receipt of written evidence that all insurance required
hereunder is in full force and effect, Lender shall have the right, upon ten (10) days’ notice to
Borrower, to take such action as Lender deems necessary to protect its interest in each Individual
Property, including, without limitation, obtaining such insurance coverage as Lender in its sole
discretion deems appropriate. All Insurance Premiums incurred by Lender in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender
upon demand and, until paid, shall be secured by the Instrument and shall bear interest at the
Default Rate.

Section 3.07 Damage and Destruction of Property.

(a) Borrower’s Obligations. If any damage to, loss, or destruction of the Property
occurs (any “Damage”), (i) Borrower shall promptly notify Lender and take all necessary steps to
preserve any undamaged part of the Property and (ii) if the insurance proceeds are made available
for Restoration (defined below) (but regardless of whether any proceeds are sufficient for
Restoration), Borrower shall promptly commence and diligently pursue to completion the restoration,
replacement, and rebuilding of the Property (“Restoration”) as nearly as possible to its value and
condition immediately prior to the Damage or a Taking (defined below) in accordance with plans and
specifications approved by Lender if plans and specifications are reasonably required for the
Restoration, replacement or rebuilding. Borrower shall comply with other reasonable requirements
established by Lender to preserve the security under this Instrument.

(b) Lender’s Rights. If any Damage occurs and some or all of it is covered by
insurance, then (i) Lender may, but is not obligated to, make proof of loss if not made promptly by
Borrower and Lender is authorized and empowered by Borrower to settle, adjust, or compromise any
claims for the Damage; (ii) each insurance company concerned is authorized and directed to make
payment directly to Lender for the Damage; and (iii) Lender may apply the insurance proceeds in any
order it determines (1) to reimburse Lender for all Costs (defined below) related to collection of
the proceeds and (2) subject to Section 3.07(c) at Lender’s option, to (A) payment (without any
Prepayment Premium) of all or part of the Obligations, whether or not then due and payable, in the
order determined by Lender (provided that if any Obligations remain outstanding after this payment,
the unpaid Obligations shall continue in full force and effect and Borrower shall not be excused in
the payment thereof); (B) the cure of any default under the Documents; or (C) the Restoration.
Notwithstanding the foregoing, Borrower shall have the right to settle, adjust or compromise and
receive payment for any claim for Damage if the total amount of such claim is less than
$2,820,000.00, provided, that, Borrower promptly uses the full amount of such insurance proceeds
for Restoration of the Damage and provides evidence thereof to Lender in a manner acceptable to
Lender. Any insurance proceeds held by Lender shall earn interest at the Bank Monitor Rate
(defined below) and such interest shall be added to the proceeds and used in accordance with the
terms of this Section. For purposes hereof, the term “Bank Monitor Rate” shall mean the average
interest rate of money market accounts offered by banks located in 25 cities and/or metropolitan
areas as published in the Bank Rate Monitor (referred to therein as the “Bank 25 Average”), as
determined and reset by Lender on a monthly basis, or based on some similar interest rate indicator
customarily used by Lender or its servicing agent as a standard upon which to base interest payment
credits on reserves. Except as provided above, if Borrower receives any insurance proceeds for the
Damage, Borrower shall promptly deliver the proceeds to Lender to be held in accordance with this
Section. Notwithstanding anything in this Instrument or at law or in equity to the contrary, none
of the insurance proceeds paid to Lender shall be deemed trust funds and Lender may dispose of
these proceeds as provided in this Section. Borrower expressly assumes all risk of loss from any
Damage, as between Borrower and Lender, whether or not insurable or insured against.

(c) Application of Proceeds to Restoration. Lender shall make the Net Proceeds
(defined below) available to Borrower for Restoration if: (i) there shall then be no Event of
Default; (ii) (A) a third party engineer selected by Lender and approved by Borrower (“Third Party
Engineer”) provides a good faith estimate to Lender and Borrower that Restoration can and will be
completed within eighteen (18) months after the Damage occurs and at least one (1) year prior to
the maturity of the Note and (B) Leases which are terminated or terminable as a result of the
Damage cover an aggregate of less than ten percent (10%) of the total rentable square footage
contained in the Property at the closing of the Loan or such Tenants agree in writing to continue
their Leases without abatement of rent (or such abatement of rent is fully supplemented by proceeds
of business interruption insurance as reasonably determined by Lender); and (iii) if required in
Lender’s determination for the Restoration, Borrower shall have entered into a general construction
contract acceptable in all respects to Lender for Restoration, which contract must include
provision for retainage of not less than ten percent (10%) until final completion of the
Restoration. Notwithstanding any provision of this Instrument to the contrary, Lender shall not be
obligated to make any portion of the Net Proceeds available for Restoration (whether as a result of
Damage or a Taking) unless, at the time of the disbursement request, Lender has determined in its
reasonable discretion that (y) Restoration can be completed at a cost which does not exceed the
aggregate of the remaining Net Proceeds and any funds deposited with Lender by Borrower
(“Additional Funds”) and (z) the aggregate of any loss of rental income insurance proceeds which
the carrier has acknowledged to be payable (“Rent Loss Proceeds”) and any funds deposited with
Lender by Borrower are sufficient to cover all costs and operating expenses of the Property,
including payments due and reserves required under the Documents during any Restoration.
Notwithstanding the foregoing, Borrower shall not be required to deposit Additional Funds with
Lender in the event that Lender shall be satisfied in its reasonable discretion that such
Additional Funds are and will be available to be applied towards the Restoration and, in connection
with such determination, it shall not be unreasonable for Lender to require that Borrower (x) grant
a valid and perfected security interest in any account in which such Additional Funds may be
deposited, (y) post a Letter of Credit for all or any portion of the Additional Funds and/or (z)
provide such other security arrangements as are acceptable to Lender, provided that in any event
Borrower shall be required to advance and apply all of such Additional Funds not deposited with
Lender for Restoration (and provide evidence in support thereof reasonably acceptable to Lender)
prior to any application of Net Proceeds held by Lender to such Restoration.

(d) Disbursement of Proceeds. If Lender elects or is required to make insurance
proceeds available for Restoration, Lender shall, in accordance with this Section 3.07(d) and
through a disbursement procedure established by Lender, periodically make available to Borrower in
installments the net amount of all insurance proceeds received by Lender and any interest earned
thereon after deduction of all reasonable costs and expenses incurred by Lender in connection with
the collection and disbursement of such proceeds (“Net Proceeds”), and, if any, the Additional
Funds. The amounts periodically disbursed to Borrower shall be based upon the amounts currently
due under the construction contract for Restoration (but if there shall be no construction contract
for the Restoration, such amounts shall be based on invoices received from contractors or
materialmen providing labor or materials with respect to the Restoration) and Lender’s receipt of
(i) appropriate lien waivers, (ii) a certification of the percentage of Restoration completed by an
architect or engineer acceptable to Lender, and (iii) title insurance protection against
materialmen’s and mechanic’s liens (or such other evidence satisfactory to Lender that no such
liens shall exist upon the disbursement of the aforementioned amounts). At Lender’s election, the
disbursement of funds may be handled by a disbursing agent selected by Lender and approved by
Borrower, such approval not to be unreasonably withheld, and such agent’s reasonable fees and
expenses shall be paid by Borrower. Subject to the foregoing, Borrower shall be entitled to make
written requests for installments of Net Proceeds and any Additional Funds at thirty (30) day
intervals during any Restoration, and Lender or the disbursing agent, as the case may be, shall
make the requested release within ten (10) business days of receipt of such request by Lender or
the disbursing agent, together with the documentation and information required to be submitted
therewith pursuant to this Section 3.07(d). The Net Proceeds, Rent Loss Proceeds, and any
Additional Funds shall constitute additional security for the Loan, and Borrower shall execute,
deliver, file and/or record, at its expense, such instruments as Lender requires to grant to Lender
a perfected, first-priority security interest in these funds. If the Net Proceeds are made
available for Restoration of the Property and (x) Borrower refuses or, subject to the notice and
cure provisions of Section 6.01 hereof, fails to complete the Restoration according to the
anticipated schedule for the Restoration (as approved by Lender) or (y) an Event of Default occurs,
or (z) the Net Proceeds or Additional Funds are not applied to Restoration in accordance with this
Section, then any undisbursed portion may, at Lender’s option, be applied to the Obligations in any
order of priority, and any application to principal shall be deemed a voluntary prepayment subject
to the Prepayment Premium. So long as no default exists under the Documents, any Net Proceeds that
have not been disbursed after completion of the Restoration (as determined by Lender in good faith)
shall be delivered to Borrower.

Section 3.08 Condemnation.

(a) Borrower’s Obligations. Borrower will promptly notify Lender of any threatened or
instituted proceedings for the condemnation or taking by eminent domain of the Property including
any change in any street (whether as to grade, access, or otherwise)(a “Taking”). Borrower shall,
at its expense, (i) diligently prosecute these proceedings, (ii) deliver to Lender copies of all
papers served in connection therewith, and (iii) consult and cooperate with Lender in the handling
of these proceedings. No settlement of these proceedings shall be made by Borrower without
Lender’s prior written consent. Lender may participate in these proceedings (but shall not be
obligated to do so) and Borrower will sign and deliver all instruments requested by Lender to
permit this participation.

(b) Lender’s Rights to Proceeds. All condemnation awards, judgments, decrees, or
proceeds of sale in lieu of condemnation (“Award”) are assigned and shall be paid to Lender.
Borrower authorizes Lender to collect and receive and to give receipts for an Award, to accept any
Award in the amount received without question or appeal, and/or to appeal any judgment, decree, or
award. Borrower will sign and deliver all instruments requested by Lender to permit these actions.

(c) Application of Award. Lender shall have the right to apply any Award, subject to
Section 3.08(d), in the same manner as provided in Section 3.07 for insurance proceeds held by
Lender, including the waiver of Prepayment Premium. If Borrower receives any Award, Borrower shall
promptly deliver such Award to Lender. Notwithstanding anything in this Instrument or at law or in
equity to the contrary, none of the Award paid to Lender shall be deemed trust funds, and Lender
may dispose of these proceeds as provided in this Section.

(d) Application of Award to Restoration. Lender shall permit the application of the
Award to Restoration in accordance with the provisions of Section 3.07 if: (i) no more than (A)
twenty percent (20%) of the gross area of the Improvements or (B) ten percent (10%) of the parking
spaces is adversely affected by the Taking, (ii) the amount of the loss does not exceed twenty
percent (20%) of the original amount of the Note; (iii) the Taking does not adversely affect access
to the Property from any public right-of-way; (iv) there is no Event of Default at the time of the
application of the Award; (v) after Restoration, the Property and its use will be in compliance
with all Laws; (vi) in a Third Party Engineer’s reasonable judgment, Restoration is practical and
can be completed within twenty-four (24) months after the Taking and at least one (1) year prior to
the maturity of the Note; and (vii) the Tenants and their successors, assigns and replacements
agree in writing to continue their Leases without abatement of rent after such restoration. Any
portion of the Award that is (i) for loss of value or property, or (ii) in excess of the cost of
any Restoration permitted above, may, in Lender’s sole discretion, be applied against the
Obligations (without any Prepayment Premium) or paid to Borrower.

(e) Effect on the Obligations. Notwithstanding any Taking, Borrower shall continue to
pay and perform the Obligations as provided in the Documents. Any reduction in the Obligations due
to application of the Award shall take effect only upon Lender’s actual receipt and application of
the Award to the Obligations. If the Property shall have been foreclosed, sold pursuant to any
power of sale granted hereunder, or transferred by deed-in-lieu of foreclosure prior to Lender’s
actual receipt of the Award, Lender may apply the Award received to the extent of any deficiency
upon such sale and Costs incurred by Lender in connection with such sale.

Section 3.09 Liens and Liabilities. Borrower shall pay, bond, or otherwise discharge all claims
and demands of mechanics, materialmen, laborers, and others which, if unpaid, might result in a
lien or encumbrance on the Property or the Rents (collectively, “Liens”) and Borrower shall, at its
sole expense, preserve the lien and security interest created by this Instrument and its priority.
Nothing in the Documents shall be deemed or construed as constituting the consent or request by
Lender or Trustee, express or implied, to any contractor, subcontractor, laborer, mechanic or
materialman for the performance of any labor or the furnishing of any material for any improvement,
construction, alteration, or repair of the Property. Borrower further agrees that neither Lender
nor Trustee stands in any fiduciary relationship to Borrower. Any contributions made, directly or
indirectly, to Borrower by or on behalf of any of its partners, members, principals or any party
related to such parties shall be treated as equity and shall be subordinate and inferior to the
rights of Lender under the Documents.

Section 3.10 Tax and Insurance Deposits. At Lender’s option, (i) following an Event of Default or
(ii) in the event that Borrower fails to timely deliver to Lender evidence of payment of
Assessments or insurance premiums as required by Section 3.03(a) and Section 3.06(d), respectively,
Borrower shall make monthly deposits (“Deposits”) with Lender equal to one-twelfth
(1/12th) of the annual Assessments (except for income taxes, franchise taxes,
maintenance charges and utility charges) and Insurance Premiums together with amounts sufficient to
pay these items thirty (30) days before they are due (collectively, the “Impositions”). Lender
shall estimate in good faith the amount of the Deposits until ascertainable. At that time,
Borrower shall promptly deposit any deficiency. Borrower shall promptly notify Lender of any
changes to the amounts, schedules and instructions for payment of the Impositions. Borrower
authorizes Lender or its agent to obtain the bills for Assessments directly from the appropriate
tax or governmental authority. All Deposits are pledged to Lender and shall constitute additional
security for the Obligations. The Deposits shall be held by Lender and may be commingled with
other funds. So long as no subsequent default under the Documents shall have occurred (i.e.
subsequent to the Event of Default or any failure described in (ii) above, in either instance
giving rise to Borrower’s obligation to fund the Deposits), Lender shall pay interest on the
Deposits in an amount equal to the Bank Monitor Rate and such amount shall be credited to the
account containing the Deposits. If (i) there is no Event of Default at the time of payment, (ii)
Borrower has delivered bills or invoices to Lender for the Impositions in sufficient time to pay
them when due, (iii) the Deposits are sufficient to pay the Impositions or Borrower has deposited
the necessary additional amount, then Lender shall pay the Impositions prior to their due date.
Any Deposits or interest accrued thereon remaining after payment of the Impositions shall, at
Lender’s option, be credited against the Deposits required for the following year or paid to
Borrower. If a subsequent Event of Default occurs (i.e., subsequent to the Event of Default or any
failure described in (ii) above, in either instance giving rise to Borrower’s obligation to fund
the Deposits), the Deposits may, at Lender’s option, be applied to the Obligations in any order of
priority. Any such application to principal shall be deemed a voluntary prepayment subject to the
Prepayment Premium. Borrower shall not claim any credit against the principal and interest due
under the Note for the Deposits. Upon an assignment or other transfer of this Instrument, Lender
may pay over the Deposits in its possession to the assignee or transferee and then it shall be
completely released from all liability with respect to the Deposits that have been paid to the
transferee. Borrower shall look solely to the assignee or transferee with respect thereto. This
provision shall apply to every transfer of the Deposits to a new assignee or transferee. Subject
to Article V, a transfer of title to the Land shall automatically transfer to the new owner the
beneficial interest in the Deposits. Upon full payment and satisfaction of this Instrument or, at
Lender’s option, at any prior time, the balance of the Deposits in Lender’s possession shall be
paid over to the record owner of the Land and no other party shall have any right or claim to the
Deposits. Lender may transfer all its duties under this Section to such servicer or financial
institution as Lender may periodically designate and Borrower agrees to make the Deposits to such
servicer or institution.

Section 3.11 ERISA.

(a) Borrower understands and acknowledges that, as of the date hereof, the source of funds
from which Lender is extending the Loan will include one or more of the following accounts: (i) an
“insurance company general account,” as that term is defined in Prohibited Transaction Class
Exemption (“PTE”) 95-60 (60 Fed. Reg. 35925 (Jul. 12, 1995)), as to which Lender meets the
conditions for relief in Sections I and IV of PTE 95-60; and (ii) one or more insurance company
separate accounts maintained solely in connection with fixed contractual obligations of the
insurance company, under which the amounts payable or credited to the plan are not affected in any
manner by the investment performance of the separate account.

(b) Borrower represents and warrants to Lender that (i) Borrower is not an “employee benefit
plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is
not subject to state statutes regulating investments and fiduciary obligations with respect to
governmental plans, or if subject to such statutes, is not in violation thereof in the execution of
the Documents and the making of the Loan thereunder; (iii) the assets of the Borrower do not
constitute “plan assets” of one or more plans within the meaning of 29 C.F.R. Section 2510.3-101;
and (iv) one or more of the following circumstances is true: (1) equity interests in Borrower are
publicly offered securities, within the meaning of 29 C.F.R. Section 2510.3-101(b)(2); (2) less
than twenty-five percent (25%) of all equity interests in Borrower are held by “benefit plan
investors” within the meaning of 29 C.F.R. Section 2510.3-101(f)(2); or (3) Borrower qualifies as
an “operating company,” a “venture capital operating company” or a “real estate operating company”
within the meaning of 29 C.F.R. Section 2510.3-101(c), (d) or (e), respectively.

(c) Borrower shall deliver to Lender such certifications and/or other evidence periodically
requested by Lender, in its reasonable discretion, to verify the representations and warranties in
Section 3.11(b) above. Failure to deliver these certifications or evidence, breach of these
representations and warranties, or consummation by Borrower of any transaction which would cause
this Instrument or any exercise of Lender’s rights under this Instrument to (i) constitute a
non-exempt prohibited transaction under ERISA or (ii) violate ERISA or any state statute regulating
governmental plans (collectively, a “Violation”), shall be an Event of Default. Notwithstanding
anything in the Documents to the contrary, no sale, assignment, or transfer of any direct or
indirect right, title, or interest in Borrower or the Property (including creation of a junior
lien, encumbrance or leasehold interest) (each, a “Transfer Event”) shall be permitted which would,
in Lender’s opinion, negate Borrower’s representations in this Section or cause a Violation. With
respect to any Transfer Event (other than a Permitted Transfer that does not cause any change in
any representation or warranty of Borrower under this Section 3.11), Borrower shall provide to
Lender, at least fifteen (15) days before consummation of such Transfer Event, (i) a certification
from the proposed transferee or lienholder in form and substance satisfactory to Lender that all
representations and warranties of this Section 3.11 will be true after consummation of such
Transfer Event and (ii) an agreement from the proposed transferee or lienholder to comply with this
Section 3.11.

Section 3.12 Environmental Representations, Warranties, and Covenants.

(a) Environmental Representations and Warranties. Borrower represents and warrants
with respect to the Property, to the best of Borrower’s knowledge (after due inquiry and
investigation based solely upon the environmental site assessment report of the Property (the
“Environmental Report”)), that except as fully disclosed in the Environmental Report delivered to
and approved by Lender: (i) there are no Hazardous Materials (defined below) or underground
storage tanks affecting the Property (“affecting the Property” shall mean “in, on, under, stored,
used or migrating to or from the Property”) except for (A) routine office, cleaning, janitorial and
other materials and supplies necessary to operate the Property for its current use and (B)
Hazardous Materials that are (1) in compliance with Environmental Laws (defined below), (2) have
all required permits, and (3) are in only the amounts necessary to operate the Property; (ii) there
are no past, present or threatened Releases (defined below) of Hazardous Materials in violation of
any Environmental Law affecting the Property; (iii) there is no past or present non-compliance by
the Property with Environmental Laws or with permits issued pursuant thereto; (iv) Borrower does
not know of, and has not received, any written or oral notice or communication from any person
relating to Hazardous Materials affecting the Property; and (v) Borrower has provided to Lender, in
writing, all information relating to environmental conditions affecting the Property known to
Borrower or contained in Borrower’s files which could reasonably be expected to have a material
adverse affect on the Property. “Environmental Law” means any present and future federal, state
and local laws, statutes, ordinances, rules, regulations, standards, policies and other government
directives or requirements, as well as common law, that apply to Borrower or the Property and
relate to Hazardous Materials including the Comprehensive Environmental Response, Compensation and
Liability Act and the Resource Conservation and Recovery Act. “Hazardous Materials” shall mean
petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and
oil; explosives, flammable materials; radioactive materials; polychlorinated biphenyls (“PCBs”) and
compounds containing them; lead and lead-based paint; Microbial Matter, infectious substances,
asbestos or asbestos-containing materials in any form that is or could become friable; underground
or above-ground storage tanks, whether empty or containing any substance; any substance the
presence of which on the Property is prohibited by any federal, state or local authority; any
substance that requires special handling; and any other material or substance now or in the future
defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,”
“toxic pollutant,” “contaminant,” or “pollutant” within the meaning of any Environmental Law.
“Release” of any Hazardous Materials includes any release, deposit, discharge, emission, leaking,
spilling, seeping, migrating, pumping, pouring, escaping, dumping, disposing or other movement of
Hazardous Materials. “Microbial Matter” shall mean the presence of fungi or bacterial matter which
reproduces through the release of spores or the splitting of cells, including, without limitation,
mold, mildew and viruses, whether or not such Microbial Matter is living.

(b) Environmental Covenants. Borrower covenants and agrees that: (i) all use and
operation of the Property shall be in compliance with all Environmental Laws and required permits;
(ii) there shall be no Releases of Hazardous Materials affecting the Property in violation of
Environmental Laws; (iii) there shall be no Hazardous Materials affecting the Property except (A)
routine office, cleaning and janitorial supplies, (B) in compliance with all Environmental Laws,
(C) in compliance with all required permits, and (D) (1) in only the amounts necessary to operate
the Property or (2) as shall have been fully disclosed to and approved by Lender in writing; (iv)
Borrower shall keep the Property free and clear of all liens and encumbrances imposed by any
Environmental Laws due to any act or omission by Borrower or any person (the “Environmental
Liens”); (v) Borrower shall, at its sole expense, fully and expeditiously cooperate in all
activities performed under in Section 3.12(c) including providing all relevant information and
making knowledgeable persons available for interviews; (vi) Borrower shall, at its sole expense,
(A) perform any environmental site assessment or other investigation of environmental conditions at
the Property upon Lender’s request based on Lender’s reasonable belief that the Property is not in
compliance with all Environmental Laws, (B) share with Lender the results and reports and Lender
and the Indemnified Parties (defined below) shall be entitled to rely on such results and reports,
and (C) complete any remediation of Hazardous Materials affecting the Property or other actions
required by any Environmental Laws; (vii) Borrower shall not allow any Tenant or other user of the
Property to violate any Environmental Law; (viii) Borrower shall promptly notify Lender in writing
after it becomes aware of (A) the presence, Release, or threatened Release of Hazardous Materials
affecting the Property, (B) any non-compliance of the Property with any Environmental Laws, (C) any
actual or potential Environmental Lien affecting the Property, (D) any required or proposed
remediation of environmental conditions relating to the Property, or (E) any written communication
or notice from any person relating to Hazardous Materials affecting the Property, or any oral
communication relating to or alleging any violation or potential violation by the Property of
Environmental Law. Any willful or intentional failure of Borrower to perform its obligations under
this Section 3.12 shall constitute bad faith waste of the Property.

(c) Lender’s Rights. At all reasonable times when (A) a default has occurred under
the Documents, (B) Lender reasonably believes that a Release has occurred or the Property is not in
compliance with all Environmental Laws, or (C) the Loan, the Note or any portion thereof is being
considered for sale, Lender and any person designated by Lender may enter the Property to assess
the environmental condition of the Property and its use including (i) conducting any environmental
assessment or audit the scope of which shall be determined by Lender (or, in the case of (x) clause
(A) hereof only , the scope of which shall be reasonably determined by Lender under the
circumstances provided that the applicable default does not relate to environmental matters, and
(y) clause (C) hereof only, the scope of which shall be reasonably determined by Lender under the
circumstances) and (ii) taking samples of soil, groundwater or other water, air, or building
materials, and conducting other invasive testing as determined by Lender in its sole and absolute
discretion (or, in the case of clause (C) hereof only, as determined by Lender to be reasonably
necessary), provided that Lender and any designee of Lender performing such testing shall use good
faith efforts to minimize interference with the operations at the Property during any such testing.
Borrower shall cooperate with and provide access to Lender and such person.

Section 3.13 Intentionally Omitted.

Section 3.14 Inspection. Borrower shall allow Lender and any person designated by Lender to enter
upon the Property and inspect the Property at all reasonable times at reasonable intervals and upon
reasonable prior notice. In addition, at all reasonable times when (A) a default then exists under
the Documents, (B) Lender reasonably believes that the Property is not in compliance with all Laws,
or (C) the Loan, the Note or any portion thereof is being considered for sale, Lender and any
Person designated by Lender may enter the Property to conduct tests. Lender and any designee of
Lender entering upon the Property, inspecting the Property or conducting such testing shall use
good faith efforts to minimize interference with the operations at the Property during any such
visit. Borrower shall assist Lender and such Person in effecting said inspection or testing.

Section 3.15 Records, Reports, and Audits.

(a) Records and Reports. Borrower shall maintain complete and accurate books and
records with respect to all operations of or transactions involving the Property. Annually,
Borrower shall furnish to Lender financial statements for the most current fiscal year (including a
schedule of all related obligations and contingent liabilities) for (w) Borrower, (x) any general
partner(s) of Borrower (but no other beneficial owners), (y) Hines REIT (provided that Borrower
shall only be obligated to provide consolidated annual financial statements for Hines REIT), and
(z) any Major Tenants (provided that with respect to Major Tenants, only to the extent available
through commercially reasonable efforts by Borrower).

(i) Annually, Borrower shall furnish to Lender (A) operating statements for the
Property for the most current fiscal year, including income and expenses (before and after
debt service) and capital expenditures; (B) copies of paid tax receipts for the Property;
(C) a certified rent roll including security deposits held, the expiration of the terms of
the Leases, and identification and explanation of any Tenants in default; (D) upon Lender’s
request, (I) a schedule showing Borrower’s tax basis in the Property, (II) a schedule
showing the distribution of economic interests in the Property, and (III) copies of any
other loan documents affecting the Property; (E) a certification by Borrower that Borrower
remains in full compliance with (I) the ERISA representations, covenants and provisions of
the Documents, including, without limitation, those set forth in Section 3.12 hereof, and
(II) the representations, covenants and provisions of the Documents relative to Executive
Order 13224 and other Anti-Terrorism Regulations, including, without limitation, Sections
2.09 and 3.20 hereof; (F) a budget showing projected income and expenses (before and after
debt service) for the next twelve (12) month budget period (the “Annual Budget”);
provided that from and after an Event of Default that is continuing, each
such Annual Budget submitted to Lender hereunder (including, without limitation, the Annual
Budget applicable to the Fiscal Year in which an Event of Default occurs) shall be subject
to Lender’s approval (each Annual Budget approved by Lender shall hereinafter be referred to
as, an “Approved Annual Budget”); and (G) a copy of any appraisal of the Property performed
during the previous year. Until such time that Lender approves a proposed Annual Budget
which requires the approval of Lender hereunder, the most recently Approved Annual Budget
(or, if Lender’s consent was not required for the Annual Budget for the applicable Fiscal
Year, then the most recent Annual Budget delivered to Lender hereunder) shall apply. From
and after the occurrence of an Event of Default that is continuing, in the event that
Borrower incurs an extraordinary operating expense or extraordinary capital expenditure not
set forth in the applicable Approved Annual Budget (each, an “Extraordinary Expense”), then
Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed
Extraordinary Expense for Lender’s approval.

(ii) Quarterly, Borrower shall furnish to Lender (A) operating statements for
the Property for the most current fiscal quarter, including income and expenses (before and
after debt service) and capital expenditures, and (B) a certified rent roll including
security deposits held, the expiration of the terms of the Leases, and identification and
explanation of any Tenants in default.

(b) Inspection of Reports. All of the reports, statements, and items required under
this Section shall be (i) certified as being true, correct, and accurate by an authorized Person,
partner, or officer of the delivering party or, at the deliverer’s option, audited by a Certified
Public Accountant; (ii) prepared in accordance with GAAP and satisfactory to Lender in form and
substance; and (iii) delivered within (A) ninety (90) days after the end of Borrower’s fiscal year
for annual reports, (B) forty-five (45) days after the end of each calendar quarter for quarterly
reports and (C) with respect to the Annual Budget, not later than sixty (60) days prior to the
commencement of each fiscal year. If any one report, statement, or item is not received by Lender
within thirty (30) days after written notice from Lender that such report, statement or item has
not been received by Lender, a late fee of $500.00 per month shall be due and payable by Borrower.
If any one report, statement, or item is not received within forty-five (45) days after Borrower’s
receipt of written notice that such report, statement or item has not been received by Lender,
Lender may immediately declare an Event of Default under the Documents. Borrower shall (i) provide
Lender with such additional financial, management, or other information regarding Borrower, any
general partner(s) of Borrower, Hines REIT (subject to clause (y) of subsection (a) above with
respect to financial statements) or the Property, as Lender may reasonably request, and (ii) upon
Lender’s request, deliver all items required by Section 3.15 in an electronic format (i.e., on
computer disks) or by electronic transmission acceptable to Lender.

(c) Inspection of Records. Borrower shall allow Lender or any person designated by
Lender to examine, audit, and make copies of all relevant books and records and all supporting data
at the place where these items are located at all reasonable times after reasonable advance notice;
provided that no notice shall be required if a default then exists under the Documents. Borrower
shall assist Lender in effecting such examination. Upon five (5) days’ prior written notice,
Lender may inspect and make copies of Borrower’s or any general partner of Borrower’s income tax
returns with respect to the Property for the purpose of verifying any items referenced in this
Section.

Section 3.16 Borrower’s Certificates. Within ten (10) business days after Lender’s request (but
not in excess of three (3) times in any twelve (12) month period), Borrower shall furnish a written
certification to Lender and any Investors (defined below) as to (a) the amount of the Obligations
outstanding; (b) the interest rate, terms of payment, and maturity date of the Note; (c) the date
to which payments have been paid under the Note; (d) whether any offsets or defenses exist against
the Obligations and a detailed description of any listed; (e) whether all Leases are in full force
and effect and have not been modified (or if modified, setting forth all modifications); (f) the
date to which the Rents have been paid; (g) whether, to the best knowledge of Borrower, any
defaults exist under the Leases and a detailed description of any listed; (h) the security deposit
held by Borrower under each Lease and that such amount is the amount required under such Lease; (i)
whether there are any defaults (or events which with the passage of time and/or giving of notice
would constitute a default) by Borrower or, to the best of its knowledge, Lender under the
Documents and a detailed description of any listed; (j) whether the Documents are in full force and
effect; and (k) any other matters reasonably requested by Lender related to the Leases, the
Obligations, the Property, or the Documents. Promptly upon Lender’s request (but not in excess of
one (1) time in any twelve (12) month period), Borrower shall use good faith efforts to deliver a
written certification to Lender and Investors from Tenants specified by Lender that: (a) their
Leases are in full force and effect; (b) there are no defaults (or events which with the passage of
time and/or notice would constitute a default) under their Leases and a detailed description of any
listed; (c) none of the Rents have been paid more than one month in advance; (d) there are no
offsets or defenses against the Rents and a detailed description of any listed; and (e) any other
matters reasonably requested by Lender related to the Leases; provided, however, that Borrower
shall not have to pay money to a Tenant to obtain such certification, but it will deliver a
landlord’s certification for any certification it cannot obtain.

Section 3.17 Additional Security. No other security now existing or taken later to secure the
Obligations shall be affected by the execution of the Documents and all additional security shall
be held as cumulative. The taking of additional security, execution of partial releases, or
extension of the time for the payment obligations of Borrower shall not diminish the effect and
lien of this Instrument and shall not affect the liability or obligations of any maker or
guarantor. Neither the acceptance of the Documents nor their enforcement shall prejudice or affect
Lender’s or Trustee’s right to realize upon or enforce any other security now or later held by
Lender or Trustee. Lender and/or Trustee may enforce the Documents or any other security in such
order and manner as either of them may determine in its respective discretion.

Section 3.18 Further Acts; Actions Not Performed. Borrower shall take all reasonably necessary
actions to (i) keep valid and effective the lien and rights of Lender and Trustee under the
Documents and (ii) protect the lawful owner of the Documents. Promptly upon request by Lender or
Trustee, and at Borrower’s expense, Borrower shall execute additional instruments and take such
actions as Lender and/or Trustee reasonably believes are necessary or desirable to (a) maintain or
grant Lender and Trustee a first-priority, perfected lien on the Property, (b) grant to Lender and
Trustee, to the fullest extent permitted by Laws, the right to foreclose on, or transfer title to,
the Property non-judicially, (c) correct any error or omission in the Documents, and (d) effect the
intent of the Documents, including filing/recording the Documents, additional mortgages or deeds
of trust, financing statements, and other instruments. If Borrower fails to perform any actions
required under the Documents within the time periods required thereunder, Lender shall have the
right to enter upon and take possession of the Property to prevent or remedy any such failure and
to take such actions in Borrower’s name. No such performance on the part of Lender shall be deemed
to have cured a default by Borrower.

Section 3.19 Management.

(a) Borrower shall cause Manager to manage the Property in accordance with the Property
Management and Leasing Agreement dated August 1, 2007 between Borrower, as owner, and Hines
Interests Limited Partnership, as manager (the “Management Agreement”). Borrower shall (i)
diligently perform and observe all of the terms, covenants and conditions of the Management
Agreement on the part of Borrower to be performed and observed and (ii) promptly notify Lender of
any notice to Borrower of any default by Borrower in the performance or observance of any of the
terms, covenants or conditions of the Management Agreement on the part of Borrower to be performed
and observed. If Borrower shall default, beyond the expiration of any applicable notice and cure
period, in the performance or observance of any material term, covenant or condition of the
Management Agreement on the part of Borrower to be performed or observed, then, without limiting
Lender’s other rights or remedies under this Agreement or the other Documents, and without waiving
or releasing Borrower from any of its obligations hereunder or under the Management Agreement,
Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any
act as may be appropriate to cause all the material terms, covenants and conditions of the
Management Agreement on the part of Borrower to be performed or observed.

(b) Borrower shall not surrender, terminate, cancel or materially modify the Management
Agreement, or enter into any other agreement relating to the management or operation of the
Property with Manager or any other Person, or consent to the assignment by the Manager of its
interest under the Management Agreement, in each case without the express consent of Lender, which
consent shall not be unreasonably withheld. If at any time Lender consents to the appointment of a
new manager, such new manager and Borrower shall, as a condition of Lender’s consent, execute and
deliver to Lender a subordination of management agreement in the form of the Assignment of
Management Agreement entered into in connection with the Loan.

Section 3.20 Compliance With Anti-Terrorism Regulations.

(a) Borrower hereby covenants and agrees that (i) neither Borrower, any general partner of
Borrower, nor any other wholly owned Hines Affiliate which owns any legal or beneficial interest in
Borrower, directly or indirectly, will be included in, owned by, Controlled by, act for or on
behalf of, provide assistance, support, sponsorship, or services of any kind to, or otherwise
associate with any of the Persons referred to or described in any list of persons, entities, and
governments issued by OFAC pursuant to Executive Order 13224 or any other OFAC Lists, and (ii) none
of the Related Entities will be Controlled by, act for or on behalf of, provide assistance,
support, sponsorship, or services of any kind to, or otherwise associate with any of the Persons
referred to or described in any list of persons, entities, and governments issued by OFAC pursuant
to Executive Order 13224, or any other OFAC Lists.

(b) Borrower hereby covenants and agrees that it will comply at all times with the
requirements of Executive Order 13224; the International Emergency Economic Powers Act, 50 U.S.C.
Sections 1701-06; the United and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56; the Iraqi Sanctions Act, Pub. L.
101-513; 104 Stat. 2047-55; the United Nations Participation Act, 22 U.S.C. Section 287c; the
Antiterrorism and Effective Death Penalty Act, (enacting 8 U.S.C. Section 219, 18 U.S.C.
Section 2332d, and 18 U.S.C. Section 2339b); the International Security and Development Cooperation
Act, 22 U.S.C. Section 2349 aa-9; the Terrorism Sanctions Regulations, 31 C.F.R. Part 595; the
Terrorism List Governments Sanctions Regulations, 31 C.F.R. Part 596; and the Foreign Terrorist
Organizations Sanctions Regulations, 31 C.F.R. Part 597 and any similar laws are regulation
currently in force or hereafter enacted (collectively, the “Anti-Terrorism Regulations”).

(c) Borrower hereby covenants and agrees that if it becomes aware or receives any notice that
Borrower, any general partner of Borrower or the Property, or any person holding any legal or
beneficial interest whatsoever (whether directly or indirectly) in Borrower, any general partner of
Borrower or in the Property, is named on any of the OFAC Lists (such occurrence, an “OFAC
Violation”), Borrower will immediately (i) give notice to Lender of such OFAC Violation, and
(ii) comply with all Laws applicable to such OFAC Violation (regardless of whether the party
included on any of the OFAC Lists is located within the jurisdiction of the United States of
America), including, without limitation, the Anti-Terrorism Regulations, and Borrower hereby
authorizes and consents to Lender’s taking any and all steps Lender deems necessary, in its sole
discretion, to comply with all Laws applicable to any such OFAC Violation, including, without
limitation, the requirements of the Anti-Terrorism Regulations (including the “freezing” and/or
“blocking” of assets).

(d) Upon Lender’s request from time to time during the term of the Loan, Borrower agrees to
deliver a certification confirming that the representations and warranties set forth in
Section 2.09 above remain true and correct as of the date of such certificate and confirming
Borrower’s compliance with this Section 3.20.

Section 3.21 Single Asset Covenant. Borrower hereby covenants and agrees that the representation
and warranty contained in Section 2.10(iv) above shall remain unchanged throughout the term of the
Loan

Section 3.22 Intentionally Omitted.

Section 3.23 Full Performance Required; Survival of Warranties. All representations and
warranties of Borrower made in connection with the Loan shall survive the execution and delivery of
the Documents and shall remain continuing warranties, and representations of Borrower until payment
in full of the Obligations (other than those representations and warranties of Borrower made in
connection with the Loan that expressly survive payment of the Obligations).

ARTICLE IV — ADDITIONAL ADVANCES; EXPENSES; SUBROGATION

Section 4.01 Expenses and Advances. Borrower shall pay all appraisal, recording, filing,
registration, brokerage, abstract, title insurance (including premiums), title searches and
examinations, surveys and similar data or assurances with respect to title, U.C.C. search, escrow,
attorneys’ fees (including reasonable in-house staff attorneys’ fees, in addition to outside
attorneys’ fees, provided that in-house staff attorneys’ fees shall only be included to the extent
the work performed is not duplicative of the work performed by retained attorneys as determined by
Lender in its discretion), engineers’, environmental engineers’, environmental testing, and
architects’ fees, costs (including travel), expenses, and disbursements and outlays for documentary
and expert evidence, stenographers’ charges and publication costs incurred by Borrower or Lender
(a) in connection with the granting, closing, servicing, and enforcement of the Loan and Documents
or (b) attributable to Borrower as owner of the Property. The term “Costs” shall mean any of the
foregoing incurred in connection with (1) any default by Borrower under the Documents, (2) the
servicing of the Loan, or (3) the exercise, enforcement, compromise, defense, litigation, or
settlement of any of Lender’s rights or remedies under the Documents or relating to the Loan or the
Obligations. If Borrower fails to pay any amounts or perform any actions required under the
Documents, Lender may (but shall not be obligated to) advance sums to pay such amounts or perform
such actions. No advance or performance shall be deemed to have cured a default by Borrower. All
(A) sums advanced by or payable to Lender per this Section or under applicable Laws, (B) payments
due under the Documents which are not paid in full when due, and (C) all Costs, shall: (i) be
deemed demand obligations, (ii) bear interest at the applicable interest rate specified in the
Note, which shall be the Default Rate unless prohibited by Laws, until paid if not paid on demand,
(iii) be part of, together with such interest, the Obligations, and (iv) be secured by the
Documents. Lender or Trustee, upon making any such advance, shall also be subrogated to rights of
the person receiving such advance.

Section 4.02 Subrogation. If any proceeds of the Note were used to extinguish, extend or renew any
indebtedness on the Property, then, to the extent of the funds so used, (a) Lender and Trustee
shall be subrogated to all rights, claims, liens, titles and interests existing on the Property
held by the holder of such indebtedness and (b) these rights, claims, liens, titles and interests
are not waived but rather shall (i) continue in full force and effect in favor of Lender and
Trustee and (ii) are merged with the lien and security interest created by the Documents as
cumulative security for the payment and performance of the Obligations.

ARTICLE V — SALE, TRANSFER, OR ENCUMBRANCE OF THE PROPERTY

Section 5.01 Due-on-Sale or Encumbrance. Except as expressly permitted in this Article V, it shall
be an Event of Default and, at the sole option of Lender, Lender may accelerate the Obligations and
the entire Obligations (including any Prepayment Premium) shall become immediately due and payable,
if, without Lender’s prior written consent (which may be given or withheld for any reason (or for
no reason) or given conditionally, in Lender’s sole discretion), any of the following shall occur:

(a) Borrower shall sell, convey, assign, transfer, dispose of or be divested of its title to,
convey security title to, mortgage, encumber or cause to be encumbered (except for the imposition
of mechanics’ or materialmans’ liens, which shall be treated as provided in Section 3.09 hereof)
the Property or any interest therein in any manner or way, whether voluntary or involuntary (other
than to Lender in connection with the Instrument, or otherwise in accordance with the Documents);

(b) in the event of any merger, consolidation, sale, transfer, assignment, or dissolution
involving all or substantially all of the assets of Borrower or any general partner of Borrower; or

(c) other than in connection with the Key Bank Loan (defined below), in the event of any
assignment, transfer, pledge, voluntary or involuntary sale, or encumbrance (or any of the
foregoing at one time or over any period of time) of:

(i) ten percent (10%) or more of (1) the ownership interests in Borrower,
regardless of the type or form of entity of Borrower, (2) the voting stock or
ownership interest of any corporation or limited liability company which is,
respectively, general partner or managing member of Borrower, or any corporation,
limited partnership or limited liability company directly or indirectly owning ten
percent (10%) or more of any such corporation or limited liability company, or (3)
the ownership interests of any owner of ten percent (10%) or more of the beneficial
interests of Borrower if such Borrower is a trust; or

(ii) any general partnership interest in (1) Borrower, (2) a partnership which
is in Borrower’s chain of ownership and which is derivatively liable for the
Obligations, or (3) any general partner who has the right to participate directly or
indirectly in the control of the management or operations of Borrower; or

(d) in the event of the conversion of any general partnership interest in Borrower to a
limited partnership interest; or

(e) in the event of any change, removal, or resignation of any general partner of Borrower; or

(f) in the event of any change, removal, addition, or resignation of a managing member (or if
no managing member, any member) of Borrower if Borrower is a limited liability company; or

(g) in the event of any unsecured indebtedness (exclusive of ad valorem taxes and assessments
and insurance premiums) except (i) customary and reasonable short-term trade payables, and
(ii) capital and other financing leases and purchase money indebtedness for personal property, each
incurred in the ordinary course of business and on commercially reasonable terms (provided,
however, the aggregate amount of indebtedness under clauses (i) and (ii) does not, at any
time exceed $4,000,000.

	 	 	 
	This Section 5.01 shall not apply to transfers under any will or applicable law of descent.

	Section 5.02

	 	Permitted Transfers of Interests in Borrower.

(a) Notwithstanding the provisions of Section 5.01 or anything to the contrary contained in
this Instrument or the Documents, direct and indirect interests in Borrower, in the General Partner
or in any other constituent of Borrower may be freely conveyed, transferred, sold or redeemed (and
new or different interests issued) (and, solely with respect to the direct and indirect interests
in Hines REIT and, in connection with the Key Bank Loan (defined below), the interests in Borrower
and up to forty-nine percent (49%) of the membership interests in the General Partner, assigned or
pledged, provided that the foreclosure of such assignment(s) or pledge(s) by the assignee(s) or
pledgee(s) thereof (either individually or together) would not result in the violation of the
condition set forth in clauses (B)(3), (4) and (5) below; it being agreed that the foreclosure of
such assignment(s) or pledge(s) by the assignee(s) or pledgee(s) thereof shall not be subject to
clauses B(1) and (2) below) without the consent of Lender and without the payment of any fee, so
long as: (A) solely with respect to direct interests in Borrower or the General Partner, Lender
receives written notice of any such conveyance, transfer, sale, redemption or issuance (or any such
assignment or pledge) promptly after the occurrence thereof, together with a certification by
Borrower that all of the applicable conditions thereto set forth below have been satisfied; and (B)
following any such conveyance, transfer, sale, redemption or issuance: (1) Hines Affiliates
continue to control, directly or indirectly, the management and operations of the investment
advisor of Hines Real Estate Investment Trust, Inc., a publicly traded Maryland real estate
investment trust (“Hines REIT Parent”), (2) Hines REIT Parent (i) continues to be the general
partner, and retains management and operational control, of Hines REIT, (ii) continues to own,
directly or indirectly, in the aggregate, at least a 51% ownership interest in Borrower, and (iii)
retains management and operational control of Borrower, (3) the Property continues to be managed by
a Qualified Manager, (4) Borrower remains in compliance with the ERISA representations, covenants
and provisions of the Documents, including, without limitation, those set forth in Section 3.11
hereof, and (5) Borrower remains in compliance with the representations, covenants and provisions
of the Documents relative to Executive Order 13224 and other Anti-Terrorism Regulations, including,
without limitation, Sections 2.09 and 3.20 hereof (in connection with the delivery of Borrower’s
annual financial statements, Borrower shall also deliver to Lender certifications stating that
Borrower is in compliance with the representations, covenants and provisions of the Documents
described in (4) and (5) above). Notwithstanding the foregoing (except as expressly permitted in
connection with the Key Bank Loan), no conveyance, transfer, sale or redemption of direct and
indirect interests in Borrower, in any general partner of Borrower or in any other constituent of
Borrower shall be permitted upon the occurrence of an Event of Default other than with respect to
direct or indirect interests in Hines REIT.

(b) As used herein, (i) “Key Bank Loan” shall mean that certain secured revolving credit
facility obtained by Hines REIT, as borrower/pledgor, from Key Bank National Association, as
administrative agent for itself and certain other lenders or any refinancing, renewal, extension,
amendment, modification or replacement thereof provided by Key Bank or by a Qualified Institutional
Lender (defined below); provided that any refinancing, amendment, modification or replacement of
the Key Bank Loan that is secured only by a pledge or pledges of interests in Borrower and/or
Borrower’s GP (i.e., the loan or amendment is not secured by interests in any entity that owns an
interest directly or indirectly in any real property other than the Property), shall not be in
excess of $55,750,000, (ii) “Qualified Institutional Lender” shall mean any insurance company,
bank, investment bank, savings and loan association, trust company, commercial credit corporation,
pension plan, pension fund or pension fund advisory firm, mutual fund or other investment company,
governmental entity or plan, “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act of 1933, as amended (other than a broker/dealer), or an institution
substantially similar to any of the foregoing (including a real estate investment trust, real
estate opportunity fund or similar investment vehicle), in each case having at least $1,000,000,000
in capital/statutory surplus or shareholder’s equity and at least $2,000,000,000 in total assets,
and being experienced in making commercial real estate loans or otherwise investing in commercial
real estate, (iii) “Permitted Investor” shall mean, individually and collectively as the context
requires, any entity (other than Hines, a Hines Affiliate or an Affiliate of Borrower’s general
partner) which after the date hereof acquires any direct or indirect interest in Borrower, Hines
REIT or Hines REIT Parent pursuant to a Permitted Transfer in accordance with all of the terms and
conditions set forth in this Section 5.02, and (iv) “Qualified Manager” shall mean (1) Hines, (2) a
Hines Affiliate or (3) a reputable and experienced professional management organization (a) which,
together with its Affiliates and exclusive of the Property (i) manages office properties similar to
the Property containing at least 3,000,000 square feet of gross leasable area in the aggregate, and
(ii) manages at least five (5) office properties similar to the Property that each contain over
250,000 square feet of gross leasable area and (b) approved by Lender, which approval shall not be
unreasonably withheld. In addition to, and without limiting, the foregoing, Lender’s prior written
consent shall not be required, and no notice to Lender shall be required with respect to any
transfers of any or all of the direct and/or indirect interests in Hines REIT, Hines REIT Parent or
any Permitted Investor, provided that following any such transfer the conditions in clauses (B)(1),
(B)(2) and (B)(3) of the immediately preceding paragraph continue to be satisfied.

Section 5.03 One-Time Transfer. Notwithstanding anything to the contrary contained in this
Instrument or the Documents, at any time after one (1) year from the date hereof, so long as there
is no Event of Default under the Documents (or event which with the passage of time or the giving
of notice or both would be an Event of Default), Lender agrees, upon thirty (30) days’ prior
written request, to consent to one (1) transfer of the Property by the original Borrower only to a
single entity (the “Third Party Single Entity”) that will own the Property following such transfer,
if:

(a) The Third Party Single Entity (such entity shall sometimes be referred to herein as the
“Proposed Transferee”) is a Person which, in the judgment of Lender, (1) has a net worth of at
least $200,000,000, (2) has specific related commercial real estate experience and owns a minimum
of two million (2,000,000) square feet of office space in the United States (which may include the
Property), and (3) is a Person that would be (and the principals of such entity would be), in the
experience and judgment of Lender, an acceptable borrower under the Loan; provided that it
is expressly understood, without limiting the foregoing, that the Proposed Transferee shall not be
acceptable if (A) upon assumption of the Loan, such transferee’s, its affiliates’, or related
entities’ credit obligations shall exceed Lender’s individual or related borrower limits as
established by Lender from time to time in its sole discretion, or (B) the Proposed Transferee is
related to Lender or advised by Lender or any affiliate of Lender; provided,
however, at any time with respect to a specific proposed sale by Borrower of the Property,
upon a written request from Borrower to Lender providing the necessary information regarding the
proposed Third Party Single Entity and its affiliates and related entities, Lender shall notify
Borrower if upon assumption of the Loan, such proposed Third Party Single Entity’s, its affiliates’
or related entities’ credit obligations will exceed Lender’s then-current individual or related
borrower limits;

(b) At the time of transfer, the Loan to Value Ratio does not exceed fifty-five percent (55%);

(c) Borrower pays Lender a non-refundable servicing fee in the amount of $25,000 at the time
of the request, together with an additional fee equal to one-half percent (0.50%) of the
outstanding principal balance of the Loan at the time of the transfer, less the amount of the
non-refundable servicing fee paid to Lender;

(d) At Lender’s option, Lender’s title policy has been endorsed to verify the first priority
lien of the Documents, at Borrower’s expense;

(e) At the time of the transfer, the Debt Service Coverage Ratio is at least 2.00 to 1.00 for
the immediately preceding twelve (12) month period, and Lender receives satisfactory evidence that
such Debt Service Coverage Ratio will be maintained or exceeded for the next succeeding twelve (12)
months;

(f) The Proposed Transferee expressly assumes all obligations under the Documents and executes
any documents reasonably required by Lender, and all of these documents are satisfactory in form
and substance to Lender;

(g) A guarantor, acceptable to Lender, executes a guaranty and indemnity (pursuant to
documents satisfactory in form and substance to Lender) with respect to all of the ERISA,
environmental and personal obligations of Borrower under the Documents, including, without
limitation, those set forth in Sections 3.11, 3.12, 8.01, 8.02, 8.03, 8.04 and 8.05 hereof and
those set forth in the Environmental Indemnity;

(h) Lender reasonably approves the form and content of all transfer documents and Lender is
furnished with a certified copy of the recorded transfer documents;

(i) The Proposed Transferee complies with and delivers Lender’s standard ERISA certification
and indemnification agreement;

(j) Borrower provides a copy of (A) the purchase and sale agreement (and all amendments
thereto) for the Property at the time of the transfer request or within five (5) days of execution,
(B) all amendments to the purchase and sale agreement after delivery of said agreement to Lender,
and (C) a fully-executed closing statement upon closing of the transfer;

(k) The transferee shall sign and deliver Lender’s current credit certification at the time of
the request, which shall include a representation that the Proposed Transferee and all Persons
holding any legal or beneficial interest whatsoever in the Proposed Transferee are not included in,
owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or
services of any kind to, or otherwise associated with any of the Persons referred to or described
in Executive Order 13224; and

(l) Borrower or the Proposed Transferee pays all reasonable fees, costs, and expenses incurred
by Lender in connection with the proposed transfer, including, without limitation, all reasonable
legal (for both outside counsel and Lender’s staff attorneys), accounting, title insurance,
documentary stamps taxes, intangible taxes, mortgage taxes, recording fees, and appraisal fees,
whether or not the transfer is actually consummated.

As used herein or elsewhere in the Documents, the term “Debt Service Coverage Ratio” shall mean the
ratio, as reasonably determined by Lender, calculated by dividing (a) NOI by (b) Total Annual Debt
Service; the term “NOI” shall mean the gross annual income realized from operations of the Property
for the applicable twelve (12) month period after subtracting all necessary and ordinary operating
expenses (both fixed and variable) for that twelve (12) month period (assuming for expense purposes
only that the Property is 95% leased and occupied if actual leasing is less than 95%), including,
without limitation, utilities, administrative, cleaning, landscaping, security, repairs, and
maintenance, management fees, reserves for replacements, real estate and other taxes (on a fully
assessed basis after any transfer of the Property pursuant to Section 5.03 hereof), assessments and
insurance, but excluding deduction for federal, state and other income taxes, debt service expense,
depreciation or amortization of capital expenditures, and other similar non-cash items. Gross
annual income shall be based on the cash actually received for the preceding twelve (12) months and
projected income based on Leases in place for the next succeeding twelve (12) months, and ordinary
operating expenses shall not be prepaid. Documentation of NOI and expenses shall be certified by
an officer of Borrower with detail satisfactory to Lender and shall be subject to the approval of
Lender acting in good faith; the term “Total Annual Debt Service” shall mean the aggregate debt
service payments for the applicable twelve (12) month period (for which NOI is calculated in
connection with the determination of the Debt Service Coverage Ratio) on the Loan and all other
indebtedness secured, or to be secured, by any part of the Property; and “Loan to Value Ratio”
shall mean the ratio, as reasonably determined by Lender, of (a) the aggregate principal balance of
all encumbrances against the Property to (b) the fair market value of the Property.

Section 5.04 Rights Personal. Notwithstanding anything to the contrary contained herein, (a) the
rights afforded under Section 5.03 shall be personal to the original Borrower under the Loan, it
being agreed that no Third Party Single Entity shall have any rights whatsoever under such
Sections.

	 	 	 
	ARTICLE VI - DEFAULTS AND REMEDIES
	Section 6.01

	 	Events of Default. The following shall be an “Event of Default”:

(a) if Borrower fails to make any payment required under the Documents when due and such
failure continues for five (5) days after written notice from Lender to Borrower; provided,
however, that if Lender gives one (1) notice of default related to Borrower’s failure to pay
installments of principal and interest, Assessments or Impositions within any twelve (12) month
period, Borrower shall have no further right to any notice of default related to Borrower’s failure
to pay installments of principal and interest, Assessments or Impositions during that twelve (12)
month period (the foregoing limitation of one (1) notice during a twelve (12) month period not
being applicable to any other payments to be made by Borrower under the Documents); provided,
further, however, Borrower shall have no right to any such notice upon the maturity date of the
Note;

(b) except for defaults listed in the other subsections of this Section 6.01, if Borrower
fails to perform or comply with any other provision contained in the Documents and the default is
not cured within thirty (30) days following written notice from Lender to Borrower thereof (the
“Grace Period”); provided, however, that the Grace Period will be extended up to an additional
ninety (90) days (for a total of one hundred twenty (120) days from the date of default) if (i)
Borrower promptly commences and diligently pursues the cure of such default and delivers (within
the initial thirty (30) day period following written notice of the default) to Lender a written
request for more time and (ii) Lender determines in good faith that (1) such default cannot be
cured within such 30 day period but can be cured within one hundred twenty (120) days after the
default, (2) no lien or security interest created by the Documents will be impaired prior to
completion of such cure, and (3) Lender’s immediate exercise of any remedies provided hereunder or
by law is not necessary for the protection or preservation of the Property or Lender’s or Trustee’s
security interest ;

(c) if any representation made (i) in connection with the Loan or the Obligations or (ii) in
the Documents shall be false or misleading in any material respect (provided, however, if Borrower
in good faith believed such representation to be true when made, then Borrower shall have fifteen
(15) days after receipt of written notice from Lender that such representation is false in which to
take and complete such action as is required so that such representation is true as of the end of
such fifteen (15) day period; provided, further, this right to cure misrepresentations shall not
apply to representations contained in Section 3.11 of this Instrument);

(d) if any default under Section 5.01 occurs;

(e) if Borrower shall (i) become insolvent, (ii) make a transfer in fraud of creditors, (iii)
make an assignment for the benefit of its creditors, (iv) not be able to pay its debts as such
debts become due, or (v) admit in writing its inability to pay its debts as they become due;

(f) if any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding, or
any other proceedings for the relief of debtors, is instituted by or against Borrower (by parties
other than Lender, its affiliates or its servicers), and, if instituted against Borrower, is
allowed, consented to, or not dismissed within the earlier to occur of (i) ninety (90) days after
such institution or (ii) the filing of an order for relief;

(g) if any of the events in Sections 6.01 (e) or (f) shall occur with respect to any (i)
managing member of Borrower (if Borrower is a limited liability company), or (ii) general partner
of Borrower (if Borrower is a partnership);

(h) if the Property or any material portion thereof shall be taken, attached, or sequestered
on execution or other process of law in any action against Borrower;

(i) if any default occurs under the Environmental Indemnity (defined below) and such default
is not cured within any applicable grace period in that document;

(j) if Borrower shall fail at any time to obtain, maintain, renew, or keep in force the
insurance policies required by Section 3.06 within fifteen (15) business days after written notice
from Lender to Borrower;

(k) if Borrower shall be in default under any other mortgage, deed of trust, or security
agreement covering any part of the Property, whether it be superior or junior in lien to this
Instrument;

(l) if any claim of priority (except based upon a Permitted Encumbrance) to the Documents by
title, lien, or otherwise shall be upheld by any court of competent jurisdiction or shall be
consented to by Borrower;

(m) (i) the consummation by Borrower of any transaction which would cause (A) the Loan or any
exercise of Lender’s rights under the Documents to constitute a non-exempt prohibited transaction
under ERISA or (B) a violation of a state statute regulating governmental plans; (ii) the failure
of any representation in Section 3.11 to be true and correct in all respects; or (iii) the failure
of Borrower to provide Lender with the written certifications required by Section 3.11; or

(n) (i) the consummation by Borrower of any transaction which would cause an OFAC Violation;
(ii) the failure of any representation in Section 2.09 to be true and correct in all respects; or
(iii) the failure of Borrower to comply with the provisions of Section 3.20, unless such default is
cured within the lesser of (A) fifteen (15) days after written notice of such default to Borrower
or (B) the shortest cure period, if any, provided for under any Laws applicable to such matters
(including, without limitation, the Anti-Terrorism Regulations).

Section 6.02 Remedies. If an Event of Default occurs, Lender, or any person designated by Lender
or Lender acting by or through Trustee, may (but shall not be obligated to) take any action
(separately, concurrently, cumulatively, and at any time and in any order) permitted under any
Laws, without notice, demand, presentment, or protest (all of which are hereby waived), to protect
and enforce Lender’s or Trustee’s rights under the Documents or Laws including the following
actions:

(a) accelerate and declare the entire unpaid Obligations immediately due and payable, except
for defaults under Section 6.01 (f), (g), or (h) which shall automatically make the Obligations
immediately due and payable;

(b) judicially or otherwise, (i) completely foreclose this Instrument or (ii) partially
foreclose this Instrument for any portion of the Obligations due and the lien and security interest
created by this Instrument shall continue unimpaired and without loss of priority as to the
remaining Obligations not yet due;

(c) sell for cash or upon credit the Property and all right, title and interest of Borrower
therein and rights of redemption thereof, pursuant to power of sale;

(d) recover judgment on the Note either before, during or after any proceedings for the
enforcement of the Documents and without any requirement of any action being taken to (i) realize
on the Property or (ii) otherwise enforce the Documents;

(e) seek specific performance of any provisions in the Documents;

(f) apply for the appointment of a receiver, custodian, trustee, liquidator, or conservator of
the Property without (i) notice to any person, (ii) regard for (A) the adequacy of the security for
the Obligations or (B) the solvency of Borrower or any person liable for the payment of the
Obligations; and Borrower and any person so liable waives or shall be deemed to have waived the
foregoing and any other objections to the fullest extent permitted by Laws and consents or shall be
deemed to have consented to such appointment;

(g) with or without entering upon the Property, (i) exclude Borrower and any person from the
Property without liability for trespass, damages, or otherwise; (ii) take possession of, and
Borrower shall surrender on demand, all books, records, and accounts relating to the Property;
(iii) give notice to Tenants or any person, make demand for, collect, receive, sue for, and recover
in its own name all Rents and cash collateral derived from the Property; (iv) use, operate, manage,
preserve, control, and otherwise deal with every aspect of the Property including (A) conducting
its business, (B) insuring it, (C) making all repairs, renewals, replacements, alterations,
additions, and improvements to or on it, (D) completing the construction of any Improvements in
manner and form as Lender deems advisable, and (E) executing, modifying, enforcing, and terminating
new and existing Leases on such terms as Lender deems advisable and evicting any Tenants in
default; (v) apply the receipts from the Property to payment of the Obligations, in any order or
priority determined by Lender, after first deducting all Costs, expenses, and liabilities incurred
by Lender or Trustee in connection with the foregoing operations and all amounts needed to pay the
Impositions and other expenses of the Property, as well as just and reasonable compensation for the
services of Lender, Trustee, and their attorneys, agents, and employees; and/or (vi) in every case
in connection with the foregoing, exercise all rights and powers of Borrower, or Lender or Trustee
with respect to the Property, either in Borrower’s name or otherwise;

(h) release any portion of the Property for such consideration, if any, as Lender may require
without, as to the remainder of the Property, impairing or affecting the lien or priority of this
Instrument or improving the position of any subordinate lienholder with respect thereto, except to
the extent that the Obligations shall have been actually reduced, and Lender may accept by
assignment, pledge, or otherwise any other property in place thereof as Lender may require without
being accountable for so doing to any other lienholder;

(i) apply any Deposits to the following items in any order and in Lender’s sole discretion:
(A) the Obligations, (B) Costs, (C) advances made by Lender or Trustee under the Documents, and/or
(D) Impositions;

(j) take all actions permitted under the U.C.C. of the Property State including (i) the right
to take possession of all tangible and intangible personal property now or hereafter included
within the Property (“Personal Property”) and take such actions as Lender or Trustee deems
advisable for the care, protection and preservation of the Personal Property and (ii) request
Borrower at its expense to assemble the Personal Property and make it available to Lender or
Trustee at a convenient place acceptable to Lender or Trustee. Any notice of sale, disposition or
other intended action by Lender or Trustee with respect to the Personal Property sent to Borrower
at least five (5) days prior to such action shall constitute commercially reasonable notice to
Borrower; or

(k) take any other action permitted under any Laws.

If Lender or Trustee exercises any of its rights under Section 6.02(g), Lender and Trustee shall
not (a) be deemed to have entered upon or taken possession of the Property except upon the exercise
of its option to do so, evidenced by its demand and overt act for such purpose; (b) be deemed a
beneficiary or mortgagee in possession by reason of such entry or taking possession; nor (c) be
liable (i) to account for any action taken pursuant to such exercise other than for Rents actually
received by Lender or Trustee, (ii) for any loss sustained by Borrower resulting from any failure
to lease the Property, or (iii) any other act or omission of Lender or Trustee except for losses
caused by Lender’s or Trustee’s willful misconduct or gross negligence. Borrower hereby consents
to, ratifies, and confirms the exercise by Lender and Trustee of its or their rights under this
Instrument and appoints Lender and Trustee as its attorney-in-fact, which appointment shall be
deemed to be coupled with an interest and irrevocable, for such purposes.

Section 6.03 Expenses. All Costs, expenses, or other amounts paid or incurred by Lender or Trustee
in the exercise of its or their rights under the Documents, together with interest thereon at the
applicable interest rate specified in the Note, which shall be the Default Rate unless prohibited
by Laws, shall be (a) part of the Obligations, (b) secured by this Instrument, and (c) allowed and
included as part of the Obligations in any foreclosure, decree for sale, power of sale, or other
judgment or decree enforcing Lender’s and/or Trustee’s rights under the Documents.

Section 6.04 Rights Pertaining to Sales. To the extent permitted under (and in accordance with)
any Laws, the following provisions shall, as Lender or Trustee may determine in its or their sole
discretion, apply to any sales of the Property under Article VI, whether by judicial proceeding,
judgment, decree, power of sale, foreclosure or otherwise: (a) Lender or Trustee may conduct a
single sale of the Property or multiple sales of any part of the Property in separate tracts or in
any other manner as Lender deems in its best interests and Borrower waives any right to require
otherwise; (b) if Lender elects more than one sale of the Property, Lender may at its option cause
the same to be conducted simultaneously or successively, on the same day or on such different days
or times and in such order as Lender may deem to be in its best interests, no such sale shall
terminate or otherwise affect the lien of this Instrument on any part of the Property not then
sold, and Borrower shall pay the costs and expenses of each such sale (c) any sale may be
postponed or adjourned by public announcement at the time and place appointed for such sale or for
such postponed or adjourned sale without further notice or such sale may occur, without further
notice, at the time fixed by the last postponement or a new notice of sale may be given; and (d)
Lender may acquire the Property and, in lieu of paying cash, may pay by crediting against the
Obligations the amount of its bid, after deducting therefrom any sums which Lender or Trustee is
authorized to deduct under the provisions of the Documents. After any such sale, Trustee shall
deliver to the purchaser at such sale the Trustee’s deed conveying the property so sold, but
without any covenant or warranty, express or implied. The recitals in any such deed of any matters
or facts shall be prima facie evidence of the truthfulness thereof. Any Person, including
Borrower, Trustee or Lender, may purchase at such sale.

Section 6.05 Application of Proceeds. Any proceeds received from any sale or disposition under
Article VI or otherwise, together with any other sums held by Lender or Trustee, shall, except as
expressly provided to the contrary in the Documents or as otherwise required by Law, be applied in
the order determined by Lender to: (a) payment of all Costs and expenses of any enforcement
action, or foreclosure sale, transfer of title by power of sale (including but not limited to all
court costs and charges of every character in the event foreclosed by suit, and a reasonable fee to
the Trustee), or otherwise, including interest thereon at the applicable interest rate specified in
the Note, which shall be the Default Rate unless prohibited by Laws, (b) all taxes, Assessments,
and other charges with respect to the Property unless the Property was sold subject to these items;
(c) payment of the Obligations (including specifically without limitation, the principal, interest
and attorneys’ fees due and unpaid on the Note and the amount due and unpaid and owed to Lender
under this Instrument) in such order as Lender may elect; (d) payment of any other sums secured or
required to be paid by Borrower; and (e) payment of the surplus, if any, to Borrower or to such
other person lawfully entitled to receive it. Borrower and Lender intend and agree that during any
period of time between any foreclosure judgment that may be obtained and the actual foreclosure
sale that the foreclosure judgment will not extinguish the Documents or any rights contained
therein including the obligation of Borrower to pay all Costs and to pay interest at the applicable
interest rate specified in the Note, which shall be the Default Rate unless prohibited by Laws.

Section 6.06 Additional Provisions as to Remedies. No failure, refusal, waiver, or delay by Lender
or Trustee to exercise any rights under the Documents upon any default or Event of Default shall
impair Lender’s or Trustee’s rights or be construed as a waiver of, or acquiescence to, such or any
subsequent default or Event of Default. No recovery of any judgment by Lender or Trustee and no
levy of an execution upon the Property or any other property of Borrower shall affect the lien and
security interest created by this Instrument and such liens, rights, powers, and remedies shall
continue unimpaired as before. Lender or Trustee may resort to any security given by this
Instrument or any other security now given or hereafter existing to secure the Obligations, in
whole or in part, in such portions and in such order as Lender or Trustee may deem advisable, and
no such action shall be construed as a waiver of any of the liens, rights, or benefits granted
hereunder. Acceptance of any payment after any Event of Default shall not be deemed a waiver or a
cure of such Event of Default and such acceptance shall be deemed an acceptance on account only.
If Lender or Trustee has started enforcement of any right by foreclosure, sale, entry, or otherwise
and such proceeding shall be discontinued, abandoned, or determined adversely for any reason, then
Borrower, Lender and Trustee shall be restored to their former positions and rights under the
Documents with respect to the Property, subject to the lien and security interest hereof.

Section 6.07 Waiver of Rights and Defenses. To the fullest extent Borrower may do so under Laws,
Borrower (a) will not at any time insist on, plead, claim, or take the benefit of any statute or
rule of law now or later enacted providing for any appraisement, valuation, stay, extension,
moratorium, redemption, or any statute of limitations; (b) for itself, its successors and assigns,
and for any person ever claiming an interest in the Property (other than Lender), waives and
releases all rights of redemption, reinstatement, valuation, appraisement, notice of intention to
mature or declare due the whole of the Obligations, all rights to a marshaling of the assets of
Borrower, including the Property, or to a sale in inverse order of alienation, in the event of
foreclosure (or extinguishment by transfer of title by power of sale) of the liens and security
interests created under the Documents; (c) shall not be relieved of its obligation to pay the
Obligations as required in the Documents nor shall the lien or priority of the Documents be
impaired by any agreement renewing, extending, or modifying the time of payment or the provisions
of the Documents (including a modification of any interest rate), unless expressly released,
discharged, or modified by such agreement. Borrower shall not have or assert any right under any
statute or rule of law pertaining to the marshaling of assets, sale in inverse order of alienation,
the exemption of homestead, the administration of estates of decedents or other matters whatever to
defeat, reduce or affect the right of Lender under the terms of this Instrument to a sale of the
Property for the collection of the Obligations without any prior or different resort for
collection, or the right of Lender under the terms of this Instrument to the payment of such
Obligations out of the proceeds of sale of the Property in preference to every other claimant
whatever. If any law referred to in this Section 6.07 and now in force, of which Borrower or
Borrower’s heirs, devisees, representatives, successors and assigns, and such other persons
claiming any interest in the Property, might take advantage despite this Section, shall hereafter
be repealed or cease to be in force, such law shall not thereafter be deemed to preclude the
application of this Section 6.07. Regardless of consideration and without any notice to or consent
by the holder of any subordinate lien, security interest, encumbrance, right, title, or interest in
or to the Property, Lender may (a) release any person liable for payment of the Obligations or any
portion thereof or any part of the security held for the Obligations or (b) modify any of the
provisions of the Documents without impairing or affecting the Documents or the lien, security
interest, or the priority of the modified Documents as security for the Obligations over any such
subordinate lien, security interest, encumbrance, right, title, or interest.

ARTICLE VII — SECURITY AGREEMENT

Section 7.01 Security Agreement. This Instrument constitutes both a real property deed of trust
and a “security agreement” within the meaning of the U.C.C. The Property includes real and
personal property and all tangible and intangible rights and interest of Borrower in the Property.
Borrower grants to Lender and Trustee, as security for the Obligations, a security interest in the
Personal Property to the fullest extent that the same may be subject to the U.C.C. Borrower
authorizes Lender to file any financing or continuation statements and amendments thereto relating
to the Personal Property without the signature of Borrower if permitted by Laws.

ARTICLE VIII — LIMITATION ON PERSONAL LIABILITY AND INDEMNITIES

Section 8.01 Limited Recourse Liability. The provisions of Paragraph 8 and Paragraph 9 of the Note
are incorporated into this Instrument as if such provisions were set forth in their entirety in
this Instrument.

Section 8.02 General Indemnity. Borrower agrees that while Lender has no liability to any person
in tort or otherwise as lender and that Lender is not an owner or operator of the Property,
Borrower shall, at its sole expense, protect, defend, release, indemnify and hold harmless
(“indemnify”) the Indemnified Parties from any Losses (defined below) imposed on, incurred by, or
asserted against the Indemnified Parties, directly or indirectly, arising out of or in connection
with the Property, Loan, or Documents, including Losses; provided, however, that the foregoing
indemnities shall not apply to any Losses caused by the gross negligence or willful misconduct of
the Indemnified Parties. The term “Losses” shall mean any claims, suits, liabilities (including
strict liabilities), actions, proceedings, obligations, debts, damages, losses, Costs, expenses,
fines, penalties, charges, fees, judgments, awards, and amounts paid in settlement of whatever kind
including attorneys’ fees (both in-house staff and retained attorneys) and all other costs of
defense. The term “Indemnified Parties” shall mean (a) Lender, (b) any prior owner or holder of
the Note, (c) any existing or prior servicer of the Loan, (d) Trustee, (e) the officers, directors,
shareholders, partners, members, employees and trustees of any of the foregoing, and (f) the heirs,
legal representatives, successors and assigns of each of the foregoing.

Section 8.03 Transaction Taxes Indemnity. Borrower shall, at its sole expense, indemnify the
Indemnified Parties from all Losses imposed upon, incurred by, or asserted against the Indemnified
Parties or the Documents relating to Transaction Taxes.

Section 8.04 ERISA Indemnity. Borrower shall, at its sole expense, indemnify the Indemnified
Parties against all Losses imposed upon, incurred by, or asserted against the Indemnified Parties
(a) as a result of a Violation (as defined in Section 3.11(c)), (b) in the investigation, defense,
and settlement of a Violation, (c) as a result of a breach of the representations in Section 3.11
or default thereunder, (d) in correcting any prohibited transaction or the sale of a prohibited
loan, and (e) in obtaining any individual prohibited transaction exemption under ERISA that may be
required, in Lender’s sole discretion.

Section 8.05 Environmental Indemnity. Borrower has executed and delivered the Environmental
Indemnity Agreement dated the date hereof to Lender (“Environmental Indemnity”).

Section 8.06 Duty to Defend, Costs and Expenses. Upon request, whether Borrower’s obligation to
indemnify Lender arises under this Article VIII or in the Documents, Borrower shall defend
the Indemnified Parties (in Borrower’s or the Indemnified Parties’ name) by attorneys and other
professionals selected by Borrower and reasonably approved by Lender. Notwithstanding the
foregoing, the Indemnified Parties may, in their sole discretion, engage their own attorneys and
professionals to defend or assist them at the expense of the Indemnified Parties; provided,
however, if, in the reasonable judgment of the Indemnified Parties, (i) the defense or
assistance is not proceeding or being conducted in a satisfactory manner or (ii) there is a
conflict of interest between Borrower and any of the Indemnified Parties, such defense or
assistance shall be at Borrower’s expense and the Indemnified Parties may elect that their
attorneys shall control the resolution of such claims or proceedings. Upon demand, Borrower shall
pay or, in the sole discretion of Lender, reimburse and/or indemnify the Indemnified Parties for
all Costs imposed on, incurred by, or asserted against the Indemnified Parties by reason of any
items set forth in this Article VIII and/or the enforcement or preservation of the Indemnified
Parties’ rights under the Documents. Any amount payable to the Indemnified Parties under this
Section shall (i) be deemed an obligation due within thirty (30) days after demand (or a demand
obligation if incurred after an Event of Default), (ii) be part of the Obligations, (iii) bear
interest at the applicable interest rate specified in the Note, which shall be the Default Rate
unless prohibited by Laws, until paid if not paid when due, and (iv) be secured by this Instrument.

Section 8.07 Recourse Obligation and Survival. Notwithstanding anything to the contrary in the
Documents and in addition to the recourse obligations set forth herein, the obligations of Borrower
under Sections 2.09, 3.12, 3.13, 8.03, 8.04, 8.05, 9.10 and in the Environmental Indemnity shall be
a full recourse obligation of the Borrower, subject to the express limitations on personal
liability in the Documents, and shall survive (a) repayment of the Obligations, (b) any
termination, satisfaction, transfer of title by power of sale, assignment or foreclosure of the
Instrument, (c) the acceptance by Lender (or any nominee) of a deed in lieu of foreclosure, (d) a
plan of reorganization filed under the Bankruptcy Code, or (e) subject to the express limitations
on personal liability in the Documents, the exercise by Lender of any rights in the Documents.
Borrower’s obligations under this Article VIII shall not be affected by the absence or
unavailability of insurance covering the same or by the failure or refusal by any insurance carrier
to perform any obligation under any applicable insurance policy.

ARTICLE IX — ADDITIONAL PROVISIONS

Section 9.01 Usury Savings Clause. All agreements in the Documents are expressly limited so that
in no event whatsoever shall the amount paid or agreed to be paid under the Documents for the use,
forbearance, or detention of money exceed the highest lawful rate permitted by Laws. If, at the
time of performance, fulfillment of any provision of the Documents shall involve transcending the
limit of validity prescribed by Laws, then, ipso facto, the obligation to be fulfilled shall be
reduced to the limit of such validity. If Lender shall ever receive as interest an amount which
would exceed the highest lawful rate, the receipt of such excess shall be deemed a mistake and (a)
shall be canceled automatically or (b) if paid, such excess shall be (i) credited against the
principal amount of the Obligations to the extent permitted by Laws or (ii) rebated to Borrower if
it cannot be so credited under Laws. Furthermore, all sums paid or agreed to be paid under the
Documents for the use, forbearance, or detention of money shall to the extent permitted by Laws be
amortized, prorated, allocated, and spread throughout the full stated term of the Note until
payment in full so that the rate or amount of interest on account of the Obligations does not
exceed the maximum lawful rate of interest from time to time in effect and applicable to the
Obligations for so long as the Obligations are outstanding.

Section 9.02 Notices. Any notice, request, demand, consent, approval, direction, agreement, or
other communication (any “notice”) required or permitted under the Documents shall be in writing
and shall be validly given if sent by a nationally-recognized courier that obtains receipts,
delivered personally by a courier that obtains receipts, or mailed by United States certified mail
(with return receipt requested and postage prepaid) addressed to the applicable person as follows:

If to Borrower:

Hines REIT One Wilshire LP

c/o Hines Interests Limited Partnership

2800 Post Oak Boulevard

Houston, Texas 77056

Attention: Charles N. Hazen

Facsimile: (713) 966-7851

With a copy of notices sent to:

Hines REIT One Wilshire LP

	 	 	c/o Hines Interests Limited Partnership

2800 Post Oak Boulevard

Houston, Texas 77056

Attention: Jason P. Maxwell

Facsimile: (713) 966-2075

and

Baker Botts L.L.P.

2001 Ross Avenue

Dallas, Texas 75201

Attention: Joel M. Overton, Jr.

Facsimile: (214) 661-4938

If to Lender:

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

Prudential Asset Resources

2200 Ross Avenue

Suite 4900-E

Dallas, Texas 75201

Attention: Asset Management Department

Reference Loan No. 706107618

With a copy of notices sent to Lender to:

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

Prudential Asset Resources

2200 Ross Avenue

Suite 4900-E

Dallas, Texas 75201

Attention: Legal Department

Reference Loan No. 706107618

If to Trustee:

First American Title Insurance Company

135 Main Street, Suite 1200

San Francisco, California 94105

Attention: Heather Kucala

Each notice shall be effective upon being so sent, delivered, or mailed, but the time period for
response or action shall run from the date of receipt as shown on the delivery receipt. Refusal to
accept delivery or the inability to deliver because of a changed address for which no notice was
given shall be deemed receipt. Any party may periodically change its address for notice and
specify up to two (2) additional addresses for copies by giving the other party at least ten (10)
days’ prior notice.

Section 9.03 Sole Discretion of Lender. Except as otherwise expressly stated, whenever Lender’s
judgment, consent, or approval is required or Lender shall have an option or election under the
Documents, such judgment, the decision as to whether or not to consent to or approve the same, or
the exercise of such option or election shall be in the sole and absolute discretion of Lender.

Section 9.04 Applicable Law and Submission to Jurisdiction. The Documents shall be governed by and
construed in accordance with the laws of the Property State and the applicable laws of the United
States of America. Without limiting Lender’s or Trustee’s right to bring any action or proceeding
against Borrower or the Property relating to the Obligations (an “Action”) in the courts of other
jurisdictions, Borrower irrevocably (a) submits to the jurisdiction of any state or federal court
in the Property State, (b) agrees that any Action may be heard and determined in such court, and
(c) waives, to the fullest extent permitted by Laws, the defense of an inconvenient forum to the
maintenance of any Action in such jurisdiction.

Section 9.05 Construction of Provisions. The following rules of construction shall apply for all
purposes of this Instrument unless the context otherwise requires: (a) all references to numbered
Articles or Sections or to lettered Exhibits are references to the Articles and Sections hereof and
the Exhibits annexed to this Instrument and such Exhibits are incorporated into this Instrument as
if fully set forth in the body of this Instrument; (b) all Article, Section, and Exhibit captions
are used for convenience and reference only and in no way define, limit, or in any way affect this
Instrument; (c) words of masculine, feminine, or neuter gender shall mean and include the
correlative words of the other genders, and words importing the singular number shall mean and
include the plural number, and vice versa; (d) no inference in favor of or against any party shall
be drawn from the fact that such party has drafted any portion of this Instrument; (e) all
obligations of Borrower hereunder shall be performed and satisfied by or on behalf of Borrower at
Borrower’s sole expense, unless otherwise specifically set forth herein; (f) the terms “include,”
“including,” and similar terms shall be construed as if followed by the phrase “without being
limited to”; (g) the terms “Property,” “Land,” “Improvements,” and “Personal Property” shall be
construed as if followed by the phrase “or any part thereof”; (h) the term “Obligations” shall be
construed as if followed by the phrase “or any other sums secured hereby, or any part thereof”; (i)
the term “person” shall include natural persons, firms, partnerships, corporations, governmental
authorities or agencies, and any other public or private legal entities; (j) the term “provisions,”
when used with respect hereto or to any other document or instrument, shall be construed as if
preceded by the phrase “terms, covenants, agreements, requirements, and/or conditions”; (k) the
term “lease” shall mean “tenancy, subtenancy, lease, sublease, or rental agreement,” the term
“lessor” shall mean “landlord, sublandlord, lessor, and sublessor,” and the term “Tenants” or
“lessee” shall mean “tenant, subtenant, lessee, and sublessee”; (l) the term “owned” shall mean
“now owned or later acquired”; (m) the terms “any” and “all” shall mean “any or all”; and (n) the
term “on demand” or “upon demand” shall mean “within five (5) business days after written notice”;
and (o) the term “Trustee” shall mean “Trustee, its successors and assigns, and any substitute or
successor Trustee of the estates, properties, powers, trusts and rights conferred upon Trustee
pursuant to the Documents.”

Section 9.06 Transfer of Loan.

(a) Lender may, at any time, at its own expense (notwithstanding any provision to the contrary
that may be contained in the Documents, subject however to the italicized sentence below in this
Section 9.06) (i) sell, transfer or assign the Documents and any servicing rights with respect
thereto or (ii) grant participations therein or issue mortgage or deed of trust pass-through
certificates or other securities evidencing a beneficial interest in a rated or unrated public
offering or private placement (collectively, the “Securities”). Lender may forward to any
purchaser, transferee, assignee, servicer, participant, or investor in such Securities
(collectively, “Investors”), to any Rating Agency (defined below) rating such Securities and to any
prospective Investor, all documents and information which Lender now has or may later acquire
relating to the Obligations, Borrower, any guarantor, any indemnitor(s), the Leases, and the
Property, whether furnished by Borrower, any guarantor, any indemnitor(s) or otherwise, as Lender
determines advisable. Borrower, any guarantor and any indemnitor agree to cooperate reasonably
with Lender in connection with any transfer made or any Securities created pursuant to this Section
including the delivery of a Borrower’s estoppel certificate in accordance with Section 3.16 and
such other documents as may be reasonably requested by Lender which do not materially adversely
affect Borrower’s rights under the Documents. Any costs associated with the preparation and
delivery of the information or items required under the previous sentence shall be borne by
Borrower (except that the cost of any additional documents reasonably requested by Lender shall
only be borne by Borrower if such documents can be obtained for deminimus cost). Notwithstanding
the foregoing, Borrower shall only be required to communicate and correspond, at any one particular
point in time, with one Noteholder or servicer with respect to consents or approvals provided for
under the Documents; provided, however, the Noteholder or servicer with whom Borrower is required
to communicate or correspond may change from time to time during the term of the Loan. Borrower
shall also furnish consent of any borrower, any guarantor and any indemnitor in order to permit
Lender to furnish such Investors or such prospective Investors or such Rating Agency with any and
all information concerning the Property, the Leases, the financial condition of Borrower, any
guarantor and any indemnitor, as may be reasonably requested by Lender, any Investor, any
prospective Investor or any Rating Agency and which may be complied with without expense in excess
of $1,000. “Rating Agency” shall mean any one or more credit rating agencies approved by Lender.

(b) Borrower agrees that upon any assignment or transfer of the Documents by Lender to any
third party, Lender shall have no obligations or liabilities under the Documents, such third party
shall be substituted as the lender under the Documents for all purposes and Borrower shall look
solely to such third party for the performance of any obligations under the Documents or with
respect to the Loan.

Section 9.07 Miscellaneous. If any provision of the Documents shall be held to be invalid,
illegal, or unenforceable in any respect, this shall not affect any other provisions of the
Documents and such provision shall be limited and construed as if it were not in the Documents. If
title to the Property becomes vested in any person other than Borrower (other than in accordance
with a Permitted Transfer pursuant to Section 5.02 or Section 5.03 hereof), Lender
and Trustee may, without notice to Borrower, deal with such person regarding the Documents or the
Obligations in the same manner as with Borrower without in any way vitiating or discharging
Borrower’s liability under the Documents or being deemed to have consented to the vesting. If both
the lessor’s and lessee’s interest under any Lease ever becomes vested in any one person, this
Instrument and the lien and security interest created hereby shall not be destroyed or terminated
by the application of the doctrine of merger and Lender and Trustee shall continue to have and
enjoy all its rights and privileges as to each separate estate. Upon foreclosure (or transfer of
title by power of sale) of this Instrument, none of the Leases shall be destroyed or terminated as
a result of such foreclosure (or sale), by application of the doctrine of merger or as a matter of
law, unless Lender or Trustee takes all actions required by law to terminate the Leases as a result
of foreclosure or sale. All of Borrower’s covenants and agreements under the Documents shall run
with the land and time is of the essence with respect to Lender’s and Borrower’s obligations under
the Documents. The Documents cannot be amended, terminated, or discharged except in a writing
signed by the party against whom enforcement is sought. No waiver, release, or other forbearance
by Lender will be effective unless it is in a writing signed by Lender and then only to the extent
expressly stated. The provisions of the Documents shall be binding upon Borrower and Lender and
their heirs, devisees, representatives, successors, and assigns including successors in interest to
the Property and inure to the benefit of Borrower, Lender and Trustee and its or their heirs,
successors, substitutes, and assigns except as may be expressly limited by the provisions of the
Documents. The Documents may be executed in any number of counterparts with the same effect as if
all parties had executed the same document. All such counterparts shall be construed together and
shall constitute one instrument, but in making proof hereof it shall only be necessary to produce
one such counterpart. Upon receipt of an affidavit of an officer of Lender as to the loss, theft,
destruction or mutilation of any Document which is not of public record, and, in the case of any
mutilation, upon surrender and cancellation of the Document, Borrower will, at Lender’s cost and
expense, issue, in lieu thereof, a replacement Document, dated the date of the lost, stolen,
destroyed or mutilated Document containing the same provisions. Any reviews, inspections, reports,
approvals or similar items conducted, made or produced by or on behalf of Lender with respect to
Borrower, the Property or the Loan are for loan underwriting and servicing purposes only, and shall
not constitute an acknowledgment, representation or warranty of the accuracy thereof, or an
assumption of liability with respect to Borrower, Borrower’s contractors, architects, engineers,
employees, agents or invitees, present or future tenants, occupants or owners of the Property, or
any other party.

Section 9.08 Entire Agreement. Except as provided in Section 3.18, (a) the Documents constitute
the entire understanding and agreement between Borrower, Lender and Trustee with respect to the
Loan and supersede all prior written or oral understandings and agreements with respect to the Loan
and (b) Borrower is not relying on any representations or warranties of Lender except as expressly
set forth in the Documents. Lender is not relying on any representations or warranties of Borrower
except as expressly set forth in the Documents or any written materials delivered to Lender in
connection with the Documents or the underwriting of the Loan.

Section 9.09 Concerning the Trustee. By recording a written substitution in the county where the
Property is located or by any other means permitted by Laws, Lender may (a) remove Trustee or any
successor Trustee at any time (or times) without notice or cause and (b) replace any Trustee who
dies or resigns. To the extent permitted by Laws, Trustee waives any statutory fee for its
services and agrees to accept reasonable compensation in lieu thereof. Trustee may resign upon
thirty (30) days notice to Lender and Borrower. If more than one person is appointed Trustee, all
rights granted to Trustee under this Instrument may be exercised by any of them, without the
others, with the same effect as if exercised by all of them jointly. In addition to exercising all
rights set forth in this Instrument, Trustee may exercise all rights under Laws.

Section 9.10 Brokers. Borrower shall indemnify and hold Lender harmless from and against the
payment of any brokerage commissions or fees of any kind with respect to the Loan, and for any
legal fees and expenses incurred by Lender in connection with any claims for such commissions or
fees unless such claim is by a party claiming by, through or under Lender.

Section 9.11 Commingling of Funds. Any and all sums collected or retained by Lender hereunder or
under the other Documents (including insurance and condemnation proceeds and any deposits made by
Borrower with Lender or any agent thereof) shall not be deemed to be held in trust, and Lender may
commingle such funds or proceeds with its general assets and shall not be liable for the payment of
any interest or other return thereon, except to the extent otherwise required by law or as
expressly specified herein or otherwise required by the Documents.

Section 9.12 Intentionally Omitted.

Section 9.13 JURISDICTION. WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THE LOAN, THE DOCUMENTS, THE PROPERTY OR THE RELATIONSHIP OF LENDER AND BORROWER
HEREUNDER (“PROCEEDINGS”) EACH PARTY IRREVOCABLY (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF CALIFORNIA AND THE UNITED STATES DISTRICT COURTS LOCATED IN THE STATE OF
CALIFORNIA, (B) AGREES THAT THE EXCLUSIVE VENUE FOR JUDICIAL REFERENCE PROCEEDINGS PURSUANT TO
SECTION 9.14(b) BELOW SHALL BE THE CITY AND COUNTY OF LOS ANGELES, AND (C) WAIVES ANY OBJECTION
WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY PROCEEDINGS BROUGHT IN ANY SUCH COURT,
WAIVES ANY CLAIM THAT SUCH PROCEEDINGS HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER
WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDINGS, THAT SUCH COURT DOES NOT HAVE
JURISDICTION OVER SUCH PARTY. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE CLOSING, FULL
REPAYMENT OR ANY EARLIER TERMINATION, OF THE LOAN OR ANY LOAN DOCUMENT.

Section 9.14 Resolution of Disputes.

(a) WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES
HEREBY AGREES TO, AND DOES, WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THE LOAN, ANY DOCUMENT OR ANY OTHER DOCUMENT OR INSTRUMENT
BETWEEN THE PARTIES RELATING TO THE LOAN, THE DOCUMENTS, THE PROPERTY OR ANY DEALINGS BETWEEN THE
PARTIES RELATING TO THE SUBJECT MATTER OF ANY OF THE DOCUMENTS. THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES (EACH A “DISPUTE”, AND COLLECTIVELY, ANY OR
ALL, THE “DISPUTES”) OF ANY KIND WHATSOEVER THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THE LOAN, ANY DOCUMENT OR ANY OTHER DOCUMENT OR INSTRUMENT BETWEEN THE PARTIES
RELATING TO THE LOAN, THE DOCUMENTS, THE PROPERTY OR ANY DEALINGS BETWEEN THE PARTIES RELATING TO
THE SUBJECT MATTER OF ANY OF THE DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, ANTITRUST CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON-LAW OR STATUTORY CLAIMS.
EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTERING INTO THIS
INSTRUMENT AND ALL OTHER AGREEMENTS AND INSTRUMENTS PROVIDED FOR HEREIN, AND THAT EACH WILL
CONTINUE TO BE BOUND BY AND RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY
HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH LEGAL COUNSEL OF ITS
OWN CHOOSING, OR HAS HAD AN OPPORTUNITY TO DO SO, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS HAVING HAD THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS, OR MODIFICATIONS TO THIS INSTRUMENT OR
ANY OTHER DOCUMENT OR DOCUMENT ENTERED INTO BETWEEN THE PARTIES IN CONNECTION WITH THIS INSTRUMENT
OR ANY DOCUMENT. IN THE EVENT OF LITIGATION, THIS INSTRUMENT MAY BE FILED AS A WRITTEN CONSENT TO
A TRIAL BY THE COURT WITHOUT A JURY.

LENDER’S INITIAL:      BORROWER’S INITIAL:      

(b) Consent to Judicial Reference. If and to the extent that Section 9.14(b)
immediately above is determined by a court of competent jurisdiction to be unenforceable or is
otherwise not applied by any such court, each of the parties to this Instrument hereby consents and
agrees that (a) any and all Disputes shall be heard by a referee in accordance with the general
reference provisions of California Code of Civil Procedure Section 638, sitting without a jury in
the City and County of Los Angeles, California, (b) such referee shall hear and determine all of
the issues in any Dispute (whether of fact or of law), including issues pertaining to a
“provisional remedy” as defined in California Code of Civil Procedure Section 1281.8, including
without limitation, entering restraining orders, entering temporary restraining orders, issuing
temporary and permanent injunctions and appointing receivers, and shall report a statement of
decision, provided that, if during the course of any Dispute any party desires to seek such a
“provisional remedy” but a referee has not been appointed, or is otherwise unavailable to hear the
request for such provisional remedy, then such party may apply to the Los Angeles Superior Court
for such provisional relief, and (c) pursuant to California Code of Civil Procedure Section 644,
judgment may be entered upon the decision of such referee in the same manner as if the Dispute had
been tried directly by a court. The parties shall use their respective commercially reasonable and
good faith efforts to agree upon and select such referee, provided that such referee must be a
retired California state or federal judge, and further provided that if the parties cannot
agree upon a referee, the referee shall be appointed by the Presiding Judge of the Los Angeles
Superior Court. Each party hereto acknowledges that this consent and agreement is a material
inducement to enter into this Instrument, the Documents and all other agreements and instruments
provided for herein or therein, and that each will continue to be bound by and to rely on this
consent and agreement in their related future dealings. The parties shall share the cost of the
referee and reference proceedings equally; provided that, the referee may award
attorneys’ fees and reimbursement of the referee and reference proceeding fees and costs to the
prevailing party, whereupon all referee and reference proceeding fees and charges will be payable
by the non-prevailing party (as so determined by the referee). Each party hereto further warrants
and represents that it has reviewed this consent and agreement with legal counsel of its own
choosing, or has had an opportunity to do so, and that it knowingly and voluntarily gives this
consent and enters into this Instrument having had the opportunity to consult with legal counsel.
This consent and agreement is irrevocable, meaning that it may not be modified either orally or in
writing, and this consent and agreement shall apply to any subsequent amendments, renewals,
supplements, or modifications to this Instrument or any other agreement or document entered into
between the parties in connection with this Instrument. In the event of litigation, this
Instrument may be filed as evidence of either or both parties’ consent and agreement to have any
and all Disputes heard and determined by a referee under California Code of Civil Procedure Section
638. Notwithstanding anything to the contrary contained herein, the parties acknowledge and agree
that this provision shall have no application to any non-judicial foreclosure of all or any portion
of the Property whether pursuant to the provisions of the Documents or applicable law.

Lender’s Initial:      Borrower’s Initial:      

(c) Not Applicable to Non-Judicial Foreclosures/Realization on Collateral.
Notwithstanding anything to the contrary contained in Section 9.14, the parties hereto understand,
acknowledge and agree that (i) the provisions of Section 9.14(b) shall have no application to any
non-judicial foreclosure and/or private (i.e.,non-judicial) sale under the California Commercial
Code as to all or any portion of the Property whether pursuant to the provisions of the Documents
or applicable law; provided, however, in the event Borrower contests the same, then the provisions
of Section 9.14(b) shall apply to any Dispute arising therefrom (but not the non-judicial
foreclosure proceeding, which may remain pending), and (ii) the provisions of Section 9.14(b) shall
not be deemed to be a waiver by, or a limitation upon, the rights of Lender to proceed with a
non-judicial foreclosure or private sale under said Commercial Code as a permitted remedy hereunder
or under applicable law.

	 	 	 
	ARTICLE X - LOCAL LAW PROVISIONS
	Section 10.01

	 	State Specific Provisions.

(a) Any reference herein to Borrower as grantor shall also mean Borrower in its capacity as
Trustor under a deed of trust.

(b) Notwithstanding any other term or provision of this Instrument, neither the Environmental
Indemnity nor any guarantee executed by any party in connection with the Loan shall be secured by
the lien of this Instrument.

(c) Borrower hereby unconditionally and irrevocably waives all rights of a property owner
under Section 1265.225(a) of the California Code of Civil Procedure or any successor statute
providing for the allocation of condemnation proceeds between a property owner and a lien holder.

(d) As used herein, the term “Borrower” shall be deemed to refer to each and every Borrower,
both individually and collectively, when more than one Borrower exists, and to the original
Borrower, and its or their successors and assigns (whether or not such assign assumed the
Obligations hereunder); the term “Lender” includes the Lender named herein or any future owner or
holder, including pledgee and participants, of the Note, or any other instrument secured hereby, or
any participation. References to “foreclosure” and related phrases shall be deemed references to
the appropriate procedure in connection with Trustee’s private power of sale as well as any
judicial foreclosure proceeding or a conveyance in lieu of foreclosure.

(e) Any foreclosure proceeding hereunder shall be in accordance with applicable law,
including, without limitation, Part II, Title X, Chapter I of the California Code of Civil
Procedure and/or Division 3, Part 4, Title XIV, Chapter 2 (Mortgages) of the California Civil Code.

(f) Notwithstanding any term or provision contained herein or in the Documents (including,
without limitation Section 6.07 hereof), in no event shall Borrower be deemed to have waived,
relinquished or otherwise restrained its right of redemption hereunder.

(g) This Instrument covers certain goods which are or are to become fixtures related to the
Land and shall be recorded in the county records where the Land is situate and constitutes a
fixture filing with respect to such goods executed by Borrower as debtor in favor of Lender as
secured party. The address of Borrower and Lender are located the first page hereof and in Section
9.02 hereof.

(h) Borrower’s obligation to pay, reimburse or indemnify Lender with respect to Losses shall
include, without limitation, the reasonable fees and costs of Lender’s legal counsel and
consultants, court costs, expert witness fees, document reproduction expenses, costs of exhibit
preparation, courier charges, postage and communication expenses.

(i) Borrower hereby agrees that this Instrument constitutes a written consent to waiver of
trial by jury pursuant to the provisions of California Code of Civil Procedure Section 631 and
Borrower does hereby constitute and appoint Lender its true and lawful attorney-in-fact, which
appointment is coupled with an interest, and Borrower does hereby authorize and empower Lender, in
the name, place and stead of Borrower, to file this Instrument with the clerk or judge of any court
of competent jurisdiction as statutory written consent to waiver of trial by jury.

(j) Without limiting any of the remedies provided in the Documents, Borrower acknowledges and
agrees that certain provisions of this Instrument (including, without limitation those set forth in
Section 3.12 hereof) are environmental provisions, as that term is defined in Section 736(f)(2) of
the California Code of Civil Procedure, made by the Borrower relating to the real property
security, and that Borrower’s failure to comply with the terms of this Agreement is a breach of
contract such that Lender shall have the remedies provided under Section 736 of the California Code
of Civil Procedure (“Section 736”) for the recovery of damages and for the enforcement thereof.
Pursuant to Section 736, Lender’s action for recovery of damages or enforcement of this Agreement
shall not constitute an action within the meaning of Section 726(a) of the California Code of Civil
Procedure or constitute a money judgment for a deficiency or a deficiency or a deficiency judgment
within the meaning of Sections 580a, 580b, or 726(b) of the California Code of Civil Procedure.
Borrower agrees that Lender will have the same right, power and authority to enter and inspect the
Property as is granted to the secured lender under Section 2929.5 of the California Civil Code, and
that Lender will have the right to appoint a receiver to enforce this right to enter and inspect
the Property to the extent such authority is provided under California law, including, without
limitation, the authority given to the secured lender under Section 564(c) of the California Code
of Civil Procedure.

5

[signature page follows next](Signature Page to Deed of Trust)

IN WITNESS WHEREOF, Borrower has executed this Instrument as of the day first set forth above.

BORROWER:

HINES REIT ONE WILSHIRE LP, a Delaware limited
partnership

By: Hines REIT One Wilshire GP LLC, a Delaware
limited liability company, its sole general partner

By:

Name:

Its:

	 	 	 	 	 	 	 	 	 
	STATE OF TEXAS
	 	 	)	 	 	 	 	 
	COUNTY OF HARRIS
	 	 	 	 	 	 	)	 

I certify that I know or have satisfactory evidence that is the person who appeared before me, and
said person acknowledged that he signed this instrument, on oath stated that he was authorized to
execute the instrument and acknowledged it as the Manager of Hines REIT One Wilshire GP LLC, a
Delaware limited liability company, general partner of Hines REIT One Wilshire LP, a Delaware
limited partnership, to be the free and voluntary act of such party for the uses and purposes
mentioned in the instrument.

DATED this      day of , 2007.

Notary Public in and for the State of Texas

residing at

Name:

My appointment expires:

6

Exhibit A

LEGAL DESCRIPTION OF LAND

PARCEL 1:

ALL THAT PARCEL OF LAND LOCATED IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, COMPRISING (1) LOT “A” OF TRACT NO. 1523, AS PER MAP RECORDED IN BOOK 20 PAGE 13 OF
MAPS, (2) LOT “A” OF TRACT NO. 10427, AS PER MAP RECORDED IN BOOK 158 PAGE 39 OF MAPS, AND (3)
PORTIONS OF THE SUBDIVISION OF LOTS 4, 5, 9 AND 10 OF BLOCK 20 OF ORD’S SURVEY, AS PER MAP RECORDED
IN BOOK 3 PAGE 43 OF MISCELLANEOUS RECORDS, ALL IN THE OFFICE OF THE COUNTY RECORDER OF SAID
COUNTY, AND BEING MORE PARTICULARLY BOUNDED AND DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE SOUTHEAST LINE OF GRAND AVENUE, 80 FEET WIDE, WITH THE
SOUTHWEST LINE OF TRACT NO. 667, AS PER MAP RECORDED IN BOOK 17 PAGES 30 AND 31 OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID POINT OF BEGINNING BEING SOUTH 37 DEGREES 16’
25” WEST ALONG SAID SOUTHEAST LINE OF GRAND AVENUE, 125.56 FEET FROM THE SOUTHWEST LINE OF SIXTH
STREET, 70 FEET WIDE; THENCE SOUTH 52 DEGREES 10’ 05” EAST ALONG SAID SOUTHWEST LINE OF TRACT NO.
667, 112.00 FEET TO THE MOST SOUTHERLY CORNER OF SAID TRACT NO. 667; THENCE NORTH 37 DEGREES 33’
55” EAST ALONG THE SOUTHEAST LINE OF SAID TRACT NO. 667, 0.33 FEET TO A POINT IN THE SOUTHWEST LINE
OF LOT “C” OF SAID SUBDIVISION OF LOTS 4, 5, 9 AND 10 IN BLOCK 20 OF ORD’S SURVEY; THENCE SOUTH 52
DEGREES 06’ 05” EAST ALONG THE NORTHWEST LINES OF LOTS “C” AND “D” OF SAID SUBDIVISION OF BLOCK 20
OF ORD’S SURVEY, 56.04 FEET TO THE BISECTING CENTER LINE OF SAID BLOCK 20 OR ORD’S SURVEY, ALSO
KNOWN AS THE DIVISION LINE BETWEEN PARCEL 1 AND 2 ON THE MAP ATTACHED TO THE QUITCLAIM DEED,
RECORDED IN BOOK 6753 PAGE 384, OFFICIAL RECORDS; THENCE SOUTH 37 DEGREES 35’ 05” WEST ALONG SAID
BISECTING CENTER LINE, 55.88 FEET TO THE SOUTHEASTERLY PROLONGATION OF THE SOUTHWEST LINE OF LOT
“H” OF SAID SUBDIVISION OF BLOCK 20 OF ORD’S SURVEY; THENCE SOUTH 52 DEGREES 05’ 00” EAST ALONG THE
SOUTHEASTERLY PROLONGATION OF THE SOUTHWEST LINE OF LOT “H” OF SAID SUBDIVISION OF BLOCK 20 OF
ORD’S SURVEY, 1.01 FEET TO THE MOST EASTERLY CORNER OF LOT “A” OF SAID TRACT NO. 10427; THENCE
ALONG THE SOUTHEASTERLY LINE OF LOT “A” OF SAID TRACT NO. 10427 AND ALONG THE SOUTHEASTERLY LINE OF
LOT “A” OF SAID TRACT NO. 1523, AS FOLLOWS:

SOUTH 35 DEGREES 26’ 00” WEST 2.32 FEET, SOUTH 36 DEGREES 17’ 55” WEST 54.94 FEET AND SOUTH 37
DEGREES 54’ 00” WEST 145.63 FEET TO THE MOST SOUTHERLY CORNER OF LOT “A” OF SAID TRACT NO. 1523;
THENCE NORTH 51 DEGREES 55’ 00” WEST ALONG THE SOUTHWEST BOUNDARY OF SAID LOT “A” OF TRACT NO.
1523, 168.18 FEET TO THE MOST WESTERLY CORNER OF SAID LOT “A”; THENCE NORTH 37 DEGREES 16’ 25” EAST
ALONG THE NORTHWEST BOUNDARIES OF LOT “A” OF TRACT NO. 1523, LOT “A” OF TRACT NO. 10427, AND SAID
SUBDIVISION OF LOTS 4, 5, 9 AND 10 OF BLOCK 20 OF SAID ORD’S SURVEY, SAID NORTHWEST BOUNDARIES ALSO
BEING THE SOUTHEAST LINE OF GRAND AVENUE; 257.73 FEET TO THE POINT OR PLACE OF BEGINNING.

ASSESSOR’S PARCEL NO. 5144-004-014

7

PARCEL 2:

THE SOUTHERLY 96 FEET OF LOT 7 OF BLOCK 20 OF ORD’S SURVEY, IN THE CITY OF LOS ANGELES, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 53 PAGE 66 ET SEQ., OF MISCELLANEOUS
RECORDS, SAID LOT BEING ALSO KNOWN AS LOT A OF TRACT NO. 811, RECORDED IN BOOK 16 PAGE 81 OF MAPS.

ASSESSOR’S PARCEL NO. 5144-004-029

PARCEL 3:

THAT PORTION OF GRAND AVENUE, 80 FEET WIDE, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES,
STATE OF CALIFORNIA, AS SHOWN ON MAP OF TRACT NO. 1523, RECORDED IN BOOK 20, PAGE 13 OF MAPS,
RECORDS OF SAID COUNTY, WITHIN A 3 FOOT WIDE STRIP OF LAND, THE CENTERLINE OF SAID STRIP LYING
PARALLEL WITH AND 55 FEET NORTHEASTERLY, MEASURED AT RIGHT ANGLES, FROM THE CENTERLINE OF WILSHIRE
BOULEVARD, 80 FEET WIDE, PER FIELD BOOK 14609-17 ON FILE IN THE OFFICE OF THE CITY ENGINEER.

SAID STRIP SHALL BE EXTENDED OR SHORTENED TO TERMINATE SOUTHEASTERLY IN THE SOUTHEASTERLY
RIGHT-OF-WAY LINE AND NORTHWESTERLY IN THE NORTHWESTERLY RIGHT-OF-WAY LINE OF SAID GRAND AVENUE.

PARCELS 1, 2, AND 3 ABOVE BEING THE SAME PROPERTY AS DESCRIBED ERRONEOUSLY IN THE DEED TO HINES
REIT ONE WILSHIRE LP, A DELAWARE LIMITED PARTNERSHIP RECORDED AUGUST 3, 2007 AS INSTRUMENT NO.
20071838119.

8

Exhibit B

DESCRIPTION OF PERSONAL PROPERTY SECURITY

1. All machinery, apparatus, goods, equipment, materials, fittings, fixtures, chattels, and
tangible personal property, and all appurtenances and additions thereto and betterments, renewals,
substitutions, and replacements thereof, owned by Borrower, wherever situate, and now or hereafter
located on, attached to, contained in, or used or usable in connection with the real property
described in Exhibit A attached hereto and incorporated herein (the “Land”), and all
improvements owned by Borrower and located thereon (the “Improvements”) or placed on any part
thereof, though not attached thereto, including all screens, awnings, shades, blinds, curtains,
draperies, carpets, rugs, furniture and furnishings, heating, electrical, lighting, plumbing,
ventilating, air-conditioning, refrigerating, incinerating and/or compacting plants, systems,
fixtures and equipment, elevators, hoists, stoves, ranges, vacuum and other cleaning systems, call
systems, sprinkler systems and other fire prevention and extinguishing apparatus and materials,
motors, machinery, pipes, ducts, conduits, dynamos, engines, compressors, generators, boilers,
stokers, furnaces, pumps, tanks, appliances, equipment, fittings, and fixtures now or hereafter
owned by Borrower.

2. All right, title and interest of Borrower in and to all funds, accounts, deposits,
instruments, documents, contract rights, general intangibles, notes, and chattel paper arising from
or by virtue of any transaction related to the Land, the Improvements, or any of the personal
property described in this Exhibit B.

3. All permits, licenses, franchises, certificates, and other rights and privileges now held
or hereafter acquired by Borrower in connection with the Land, the Improvements, or any of the
personal property described in this Exhibit B.

4. All right, title, and interest of Borrower in and to the name and style by which the Land
and/or the Improvements is known, including trademarks and trade names relating thereto.

5. All right, title, and interest of Borrower in, to, and under all plans, specifications,
maps, surveys, reports, permits, licenses, architectural, engineering and construction contracts,
books of account, insurance policies, and other documents of whatever kind or character, relating
to the use, construction upon, occupancy, leasing, sale, or operation of the Land and/or the
Improvements.

6. All interests, estates, or other claims or demands, in law and in equity, which Borrower
now has or may hereafter acquire in the Land, the Improvements, or the personal property described
in this Exhibit B.

7. All right, title, and interest owned by Borrower in and to all options to purchase or lease
the Land, the Improvements, or any other personal property described in this Exhibit B, or
any portion thereof or interest therein, and in and to any greater estate in the Land, the
Improvements, or any of the personal property described in this Exhibit B.

8. All of the estate, interest, right, title, other claim or demand, both in law and in
equity, including claims or demands with respect to the proceeds of insurance relating thereto,
which Borrower now has or may hereafter acquire in the Land, the Improvements, or any of the
personal property described in this Exhibit B, or any portion thereof or interest therein,
and all right, title and interest of Borrower in and to any and all awards made for the taking by
eminent domain, or by any proceeding or purchase in lieu thereof, of the whole or any part of such
property, including without limitation, any award resulting from a change of any streets (whether
as to grade, access, or otherwise) and any award for severance damages.

9. All right, title, and interest of Borrower in and to all contracts, permits, certificates,
licenses, approvals, utility deposits, utility capacity, and utility rights issued, granted, agreed
upon, or otherwise provided by any governmental or private authority, person or entity relating to
the ownership, development, construction, operation, maintenance, marketing, sale, or use of the
Land and/or the Improvements, including all of Borrower’s rights and privileges hereto or hereafter
otherwise arising in connection with or pertaining to the Land and/or the Improvements, including,
without limiting the generality of the foregoing, all right, title and interest of Borrower in and
to all water and/or sewer capacity, all water, sewer and/or other utility deposits or prepaid fees,
and/or all water and/or sewer and/or other utility tap rights or other utility rights, any right or
privilege of Borrower under any loan commitment, lease, contract, Declaration of Covenants,
Restrictions and Easements or like instrument, developer’s agreement, or other agreement with any
third party pertaining to the ownership, development, construction, operation, maintenance,
marketing, sale, or use of the Land and/or the Improvements.

AND ALL PROCEEDS AND PRODUCTS OF THE FOREGOING PERSONAL PROPERTY DESCRIBED IN THIS EXHIBIT
B.

A PORTION OF THE ABOVE DESCRIBED GOODS ARE OR ARE TO BE AFFIXED TO THE REAL PROPERTY DESCRIBED IN
EXHIBIT A.

THE BORROWER IS THE RECORD TITLE HOLDER AND OWNER OF THE REAL PROPERTY DESCRIBED IN EXHIBIT
A.

9

Exhibit C

PERMITTED ENCUMBRANCES

	1.	 	General and special taxes and assessments for the fiscal year 2007-2008.

	2.	 	The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with
Section 75 of the California Revenue and Taxation Code.

	3.	 	An easement for ingress and egress and incidental purposes in the document recorded in Book
21477, Page 385 of Official Records.

Terms and provisions as contained in the above referenced document.

As shown on the ALTA/ACSM Survey prepared by The Mollenhauer Group dated March 1, 2007
and last revised October 8, 2007 under Job No. LA 20903 (the “Survey”).

Affects Parcel 2.

	4.	 	An easement for ingress and egress, light and air and incidental purposes in the document
recorded May 16, 1945 as Book 21999, Page 56 of Official Records.

Terms and provisions as contained in the above referenced document.

As shown on the Survey.

Affects Parcel 2.

	5.	 	The terms and provisions contained in the document entitled “Covenant and Agreement to
Provide Parking Attendant” recorded August 17, 1964 as Instrument No. 5381 of Official
Records.

Affects Parcel 1.

	6.	 	The terms and provisions contained in the document entitled “Waiver of Damages,
Indemnification Agreement and Right of Ingress and Egress – Covenant to Run with the Land”
recorded September 15, 1964 as Instrument No. 5619 of Official Records.

As shown on the Survey.

Affects Parcel 1.

	7.	 	The terms and provisions contained in the document entitled “Waiver of Damages,
Indemnification Agreement and Right of Ingress and Egress – Covenant to Run with the Land”
recorded August 5, 1966 as Instrument No. 3189 of Official Records.

	8.	 	The terms and provisions contained in the document entitled “Waiver of Damages,
Indemnification Agreement and Right of Ingress and Egress – Covenant to Run with the Land”
recorded March 30, 1967 as Instrument No. 3141 of Official Records.

As shown on the Survey.

Affects Parcel 1.

	9.	 	The terms and provisions contained in the document entitled “Covenant and Agreement Regarding
Maintenance of Building and Uses” recorded April 21, 1967 as Instrument No. 2999 of Official
Records.

Affects Parcel 1.

	10.	 	The terms and provisions contained in the document entitled “Waiver of Damages,
Indemnification Agreement and Right of Ingress and Egress – Covenant to Run with the Land”
recorded May 12, 1967 as Instrument No. 2535 of Official Records.

As shown on the Survey.

Affects Parcel 1.

	11.	 	The terms and provisions contained in the document entitled “Covenant and Agreement Regarding
Maintenance of Building” recorded March 26, 1990 as Instrument No. 90-582683 of Official
Records.

As shown on the Survey.

Affects Parcel 2.

	12.	 	The terms and provisions contained in the document entitled “Covenant and Agreement” recorded
October 15, 1990 as Instrument No. 90-1748937 of Official Records.

Affects Parcel 1.

	13.	 	The terms and provisions contained in the document entitled “Waiver of Damages,
Indemnification Agreement and Right of Ingress and Egress – Covenant to Run with the Land”
recorded October 15, 1990 as Instrument No. 90-1748938 of Official Records.

Affects Parcel 1.

	14.	 	The terms and provisions contained in the document entitled “Covenant and Agreement Regarding
Maintenance of Building” recorded April 10, 1992 as Instrument No. 92-635262 of Official
Records.

Affects Parcel 1.

	15.	 	The terms and provisions contained in the document entitled “Covenant and Agreement Regarding
Maintenance of Building” recorded August 4, 1993 as Instrument No. 93-1507443 of Official
Records.

Affects Parcel 1.

	16.	 	The terms and provisions contained in the document entitled “Covenant and Agreement Regarding
Maintenance of Building Slip Resistant Surface Treatment” recorded August 4, 1993 as
Instrument No. 93-1507444 of Official Records.

Affects Parcel 1.

	17.	 	The terms and provisions contained in the document entitled “Waiver of Damages,
Indemnification Agreement and Right of Ingress and Egress – Covenant to Run with the Land”
recorded June 24, 1977 as Instrument No. 97-937913 of Official Records.

As shown on the Survey.

Affects Parcel 1.

	18.	 	The terms and provisions of the Franchise identified in Paragraph 3(A) of Schedule A hereof.

	 	A)	 	The terms and provisions contained in the document entitled “Assignment and
Assumption of Franchise Agreement” recorded September 25, 2001 as Instrument No.
01-1813357 of Official Records.

	 	B)	 	The terms and provisions contained in the document entitled “Assignment and
Assumption of Franchise Agreement” recorded August 5, 2004 as Instrument No. 04-2013236
of Official Records.

	 	C)	 	The terms and provisions contained in the document entitled “Assignment and
Assumption of Franchise Agreement” recorded August 3, 2007 as Instrument No. 07-1838120
of Official Records.

	19.	 	The terms and provisions contained in the document entitled “Master Covenant and Agreement”
recorded May 19, 2003 as Instrument No. 03-1422899 of Official Records.

	20.	 	Rights of tenants, as tenants only, under unrecorded leases, with no options to purchase or
rights of first refusal.

	21.	 	Any facts, rights interests or claims that may exist or arise by reason of the following
matters disclosed by an ALTA/ACSM survey made by Mollenhauer Group on May 1, 2007 and last
revised October 8, 2007, designated Job Number LA 20903:

	 	A)	 	The fact that water fire lines, concrete column for conduits, metal enclosures,
concrete walls, frame steps, wrought iron fences, vent pipes, chain link fences,
concrete pavement areas, chain link fence enclosures, window ledges, electrical
conduits, metal and plastic signs, water vault areas, underground B. P. & L.
substation, metal and glass canopies, driveways, flood lights, electric meters and
pullboxes, doors, concrete ramp and concrete block enclosure and telephone lines
encroaching onto or from the exterior boundary line of said land.

	 	B)	 	Any easement or lesser right in and to water lines, telephone conduit, water
lines, telephone conduit, water vault area, underground B. P. & L. substation, and
electric meters that exist on said land and do not lie within any record easement.

	 	C)	 	The fact that concrete building projections encroach over the Easterly property
line.

	 	D)	 	The fact that a sign projects up to 1 foot onto Grand Avenue.

10

Exhibit D

LIST OF MAJOR TENANTS

As used in this Instrument and in the other Documents, the term “Major Tenant” shall mean:

I. Any Tenant whose premises are larger than 50,000 rentable square feet; and

II. The following Tenants, their successors, assigns and replacements:

	 	1.	 	Crowell, Weedon & Co.

	 	2.	 	Musick, Peeler & Garrett LLP

	 	3.	 	CRG West

	 	4.	 	Qwest Communications Corporation

	 	5.	 	Verizon

11

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