Document:

Parent Guaranty and Indemnity

 Exhibit 10.14 
 EXECUTION 
 PARENT GUARANTY AND INDEMNITY 
  This PARENT GUARANTY AND INDEMNITY, dated as of August 22, 2008 (this “Guaranty”), is made and entered into
by KBS REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation that has elected to be taxed as a real estate investment trust (“Guarantor”), whose address is c/o KBS Capital Advisors, LLC, 620 Newport Center Drive, Suite 1300,
Newport Beach, CA 92660 for the benefit of GOLDMAN SACHS MORTGAGE COMPANY, a New York limited partnership (“Buyer”), whose address is One New York Plaza, New York, New York 10004. 
 RECITALS: 
  

	 A.
	 Buyer is considering entering into a repurchase transaction (the “Repurchase Transaction”) with KBS GKK PARTICIPATION HOLDINGS I, LLC, a
Delaware limited liability company (“Seller”), whose address is 620 Newport Center Drive, Suite 1300 Newport Beach, CA 92660 in the principal amount of One Hundred Sixty-Seven Million Four Hundred Thirteen Thousand One Hundred
Sixty-Two and 50/100 Dollars ($167,413,162.50). 

  

	 B.
	 In connection with the Repurchase Transaction, Seller and Buyer are entering into that certain Master Repurchase Agreement between Seller and Buyer dated as of
the date hereof (the “Repurchase Agreement”; and together with this Guaranty and any other documents evidencing, securing, or otherwise relating to the Repurchase Transaction or this Guaranty, the “Repurchase
Documents,” which term is more fully defined below). 

  

	 C.
	 Buyer has examined, among other things, both Seller’s and Guarantor’s creditworthiness and ability to pay and perform Seller’s obligations under
the Repurchase Documents. 

  

	 D.
	 Buyer has requested, as a condition of entering into the Repurchase Agreement, that the obligations of Seller under the Repurchase Agreement be guaranteed by
Guarantor. 

  

	 E.
	 Guarantor is the indirect owner of 100% of the beneficial interests of Seller. 

  

	 F.
	 Guarantor expects to benefit if Buyer enters into the Repurchase Agreement with Seller, and desire that Buyer enter into the Repurchase Agreement with Seller.

  

	 G.
	 Buyer would not enter into, and would not be obligated to enter into, the Repurchase Agreement with Seller unless Guarantor executed this Guaranty. This Guaranty
is therefore delivered to Buyer to induce Buyer to enter into the Repurchase Agreement. 

  NOW,
THEREFORE, in exchange for good, adequate, and valuable consideration, the receipt of which Guarantor acknowledges, and to induce Buyer to enter into the Repurchase Agreement and accept the Repurchase Documents, Guarantor agrees as follows:

 1.          Definitions. For purposes of this Guaranty, the following terms shall
be defined as set forth below. In addition, any capitalized term defined in the Repurchase Agreement and used but not defined in this Guaranty shall have the same meaning in this Guaranty as in the Repurchase Agreement. 
 (a)          “Buyer Entity” means, as designated by Buyer from time to
time, Buyer or Buyer’s permitted assignee, designee, nominee, servicer, or wholly owned subsidiary. 

 (b)          “Guaranteed
Obligations” means Seller’s obligation to pay to Buyer under the Repurchase Documents the Repurchase Price with respect to the Transaction Assets (whether any such Transaction Asset is purchased by Buyer before, on or after the date of
this Guaranty) on the Repurchase Date and all amounts in respect of all obligations (including, without limitation, Legal Costs) and indemnities provided for in the Repurchase Documents but excluding this Guaranty. 
 (c)          “Guarantor Litigation” means any litigation, arbitration,
investigation, or administrative proceeding of or before any court, arbitrator, or governmental authority, bureau or agency that relates to or affects any asset(s) or property(ies) of Guarantor. 
 (d)          “Insolvency Proceeding” means any case under Title 11 of
the United States Code or any successor statute or any other insolvency, bankruptcy, reorganization, liquidation, or like proceeding, or other statute or body of law relating to creditors’ rights, whether brought under state, federal, or
foreign law. 
 (e)          “Legal Costs” means all
reasonable costs and expenses incurred by Buyer in any Proceeding or in obtaining legal advice and assistance in connection with any Proceeding, any Guarantor Litigation (except a Guarantor Litigation arising from any failure of Buyer to comply with
its obligations under the Repurchase Documents or from any gross negligence or willful misconduct of Buyer), or any default by Seller under the Repurchase Documents or by Guarantor under this Guaranty (including any breach of a representation or
warranty contained in this Guaranty), including reasonable attorneys’ fees, disbursements, and other charges incurred by Buyer’s attorneys, court costs and reasonable expenses, and charges for the services of paralegals, law clerks, and
all other personnel whose services are charged to Buyer in connection with Buyer’s receipt of legal services. 
 (f)           “Proceeding” means any action, suit, arbitration, or other proceeding arising out of, or relating to the interpretation or enforcement of, this Guaranty
or the Repurchase Documents, including, without limitation, (a) an Insolvency Proceeding; (b) any proceeding in which Buyer endeavors to realize upon any Security or to enforce any Repurchase Document(s) (including this Guaranty) against
Seller or Guarantor, whether or not Buyer prevails; and (c) any proceeding commenced by Seller or Guarantor against Buyer. 
 (g)          “Repurchase Documents” means: (a) the Repurchase Documents, as defined in the recitals; (b) any other documents or instruments relating to any such
documents executed by Seller and/or Guarantor; and (c) any modifications, extensions, renewals, restatements, or replacements of any of the foregoing, whether or not consented to by Guarantor. If the Repurchase Documents, as so defined, are
modified pursuant to any Insolvency Proceeding, then (whether or not such modification was made with Buyer’s consent or agreement) Buyer may, at Buyer’s option, deem the definition of Repurchase Documents either (1) to have been
modified to reflect any such modification, or (2) to continue as it was, without regard to any such modification. 
 (h)          “Security” means any security or collateral held by or for Buyer for the Repurchase Transaction or the Guaranteed Obligations, whether real or personal
property, including any mortgage, deed of trust, financing statement, security agreement, and other security document or instrument of any kind securing the Repurchase Transaction in whole or in part. “Security” shall include all assets
and property of any kind whatsoever pledged or mortgaged to Buyer pursuant to the Repurchase Documents. 
 (i)           “Seller” means: (a) Seller as defined above, acting on its own behalf; (b) any estate created by the commencement of an Insolvency Proceeding
affecting Seller; (c) any trustee, liquidator, sequestrator, or receiver of Seller or Seller’s property; and (d) any similar Person duly appointed pursuant to any law governing any Insolvency Proceeding of Seller. 
  

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 2.          Absolute Guaranty of all Guaranteed
Obligations. Guarantor unconditionally and irrevocably guarantees Seller’s prompt and complete payment, observance, fulfillment, and performance of all Guaranteed Obligations. Guarantor shall be personally liable for, and personally
obligated to pay and perform, all Guaranteed Obligations. All assets and property of Guarantor shall be subject to recourse if Guarantor fails to pay and perform any Guaranteed Obligation(s) when and as required to be paid and performed pursuant to
the Repurchase Documents. 
 3.          Nature and Scope of Liability.
Guarantor’s liability under this Guaranty is primary and not secondary. Guarantor’s liability under this Guaranty shall be in the full amount of all Guaranteed Obligations, including any interest, default interest, costs, and reasonable
fees (including Legal Costs) payable by Seller under the Repurchase Documents, including any of the foregoing that would have accrued under the Repurchase Documents but for any Insolvency Proceeding. 
 4.          Changes in Repurchase Documents. Without notice to, or consent by, Guarantor, and in
Buyer’s sole and absolute discretion and without prejudice to Buyer or in any way limiting or reducing Guarantor’s liability under this Guaranty, Buyer may: (a) grant extensions of time, renewals or other indulgences or modifications
to Seller or any other party under any of the Repurchase Document(s), (b) change, amend, or modify any Repurchase Document(s), (c) authorize the sale, exchange, release or subordination of any Security, (d) accept or reject additional
Security, (e) discharge or release any party or parties liable under the Repurchase Documents, (f) foreclose or otherwise realize on any Security, or attempt to foreclose or otherwise realize on any Security, whether such attempt is
successful or unsuccessful, (g) accept or make compositions or other arrangements or file or refrain from filing a claim in any Insolvency Proceeding, (h) make loans to Seller in such amount(s) and at such time(s) as Buyer may determine,
(i) credit payments in such manner and order of priority as Buyer may determine in its discretion, and (j) otherwise deal with Seller and any other party related to the Repurchase Transaction or any Security as Buyer may determine in its
sole and absolute discretion. Without limiting the generality of the foregoing, Guarantor’s liability under this Guaranty shall continue even if Buyer alters any obligations under the Repurchase Documents in any respect or Buyer’s or
Guarantor’s remedies or rights against Seller are in any way impaired or suspended without Guarantor’s consent. If Buyer performs any of the actions described in this paragraph, then Guarantor’s liability shall continue in full force
and effect even if Buyer’s actions impair, diminish or eliminate Guarantor’s subrogation, contribution, or reimbursement rights (if any) against Seller or otherwise adversely affect Guarantor or expand Guarantor’s liability hereunder.

 5.          Covenants. 
 (a)          General Covenants. Guarantor shall not without the prior written
consent of Buyer, permit or allow: 
 (i)          admission of any Person
(other than any direct or indirect subsidiary of Guarantor) as a holder of membership interests in Seller; provided, however, the foregoing shall not preclude the merger of Guarantor or its successor which does not effect a Change of Control;

 (ii)         itself or Seller, as applicable, to seek (1) Seller’s
dissolution, liquidation or winding up, in whole or in part, or any Change of Control, or (2) any consolidation or merger of Seller, except as permitted by Section 8.04 of the Repurchase Agreement; or 
 (iii)        itself or Seller, as applicable, to take any of the following actions:
(i) dissolve or liquidate, in whole or in part, except in connection with a merger or consolidation where Guarantor is not the surviving entity if such transaction will not effect a Change of Control; (ii) consolidate or merge with or into
any other entity or convey or transfer all or substantially all of its properties and assets to any 

  

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entity if such action would result in a Change of Control; (iii) institute any proceeding to be adjudicated as bankrupt or insolvent, or consent to the
institution of bankruptcy or insolvency proceedings against it, or file a petition or answer or consent seeking reorganization or relief under the Bankruptcy Code or consent to the filing of any such petition or to the appointment of a receiver,
rehabilitator, conservator, liquidator, assignee, trustee or sequestrator (or other similar official) of Guarantor or Seller or of any substantial part of its respective property, or ordering the winding up or liquidation of its affairs, or make an
assignment for the benefit of creditors, or admit in writing its inability to pay its debts generally as they become due, or take any action in furtherance of any of the foregoing; (iv) amend or terminate the memorandum and articles of
association of Seller; or (v) permit KBS Debt Holdings, LLC to transfer its membership interests in Seller to any person other than Guarantor or an indirect or direct Subsidiary of Guarantor. 
 (b)          Financial Covenants. Guarantor covenants and agrees with Lender
that, until payment in full of all Guaranteed Obligations: 
 (i)          Maintenance of Tangible Net Worth. Guarantor shall not have a Tangible Net Worth at any time (A) prior to the first anniversary of the date hereof, of less than
$1,080,400,000 and (B) on or after the first anniversary of the date hereof, of less than 200% of the sum of (x) the Aggregate Repurchase Price and (y) the Aggregate Citigroup Repurchase Price. 
 (ii)          Maintenance of Ratio of Total Indebtedness to Tangible Net Worth.
Guarantor shall not at any time after the date hereof to have a ratio of Total Indebtedness to Tangible Net Worth at any time greater than 2:50 to 1:00. 
 (iii)        Interest Coverage Ratio. Guarantor shall not permit the ratio of (a) Consolidated EBITDA of Guarantor to (b) Consolidated Interest Expenses of
Guarantor, to be less than 1.50: 1.00. 
 (c)          DYT Asset
Covenants. Except with respect to Liens in favor of Citigroup Financial Products, Inc. pursuant to the Citigroup MRA and Liens disclosed on Schedule 8 to the Repurchase Agreement, Guarantor covenants and agrees with Lender that, until payment in
full of all Guaranteed Obligations, neither Guarantor nor any of Guarantor’s Subsidiaries shall create, incur, assume or permit to exist any Lien on any DYT Asset, nor assign or sell any income or revenues (including accounts receivable) or
rights in respect of any thereof to secure any of its Indebtedness (or any Indebtedness of such Subsidiary) or any guarantee, indemnity or other surety obligation in respect of Indebtedness of any other Person. 
 6.          Nature of Guaranty. Guarantor’s liability under this Guaranty is a guaranty of
payment and performance of the Guaranteed Obligations, and is not a guaranty of collection or collectibility. Guarantor’s liability under this Guaranty is not conditioned or contingent upon the genuineness, validity, regularity or
enforceability of any of the Repurchase Documents. Guarantor’s liability under this Guaranty is a continuing, absolute, and unconditional obligation under any and all circumstances whatsoever (except as expressly stated, if at all, in this
Guaranty), without regard to the validity, regularity or enforceability of any of the Guaranteed Obligations. Guarantor acknowledges that Guarantor is fully obligated under this Guaranty even if Seller had no liability at the time of execution of
the Repurchase Documents or later ceases to be liable under any Repurchase Document, whether pursuant to Insolvency Proceedings or otherwise. Guarantor shall not be entitled to claim, and irrevocably covenant not to raise or assert, any defense,
counterclaim, set-off or deduction against the Guaranteed Obligations that would or might be available to Seller, other than actual payment and performance of all Guaranteed Obligations in full in accordance with their terms. Guarantor waives any
right to compel Buyer to proceed first against Seller or any Security before proceeding against Guarantor. Guarantor agrees that if any of the Guaranteed Obligations are or become void or unenforceable (because of 

  

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inadequate consideration, lack of capacity, Insolvency Proceedings, or for any other reason), then Guarantor’s liability under this Guaranty shall
continue in full force with respect to all Guaranteed Obligations as if they were and continued to be legally enforceable, all in accordance with their terms before giving effect to the Insolvency Proceedings. Guarantor also recognizes and
acknowledges that its liability under this Guaranty may be more extensive in amount and more burdensome than that of Seller. Guarantor waives any defense that might otherwise be available to Guarantor based on the proposition that a Guarantor’s
liability cannot exceed the liability of the principal. Guarantor intends to be fully liable under the Guaranteed Obligations regardless of the scope of Seller’s liability thereunder. Without limiting the generality of the foregoing, if the
Guaranteed Obligations are “nonrecourse” as to Seller or Seller’s liability for the Guaranteed Obligations is otherwise limited in some way, Guarantor nevertheless intends to be fully liable, to the full extent of Guarantor’s
assets with respect to all the Guaranteed Obligations, even though Seller’s liability for the Guaranteed Obligations may be less limited in scope or less burdensome. Guarantor waives any defenses to this Guaranty arising or purportedly arising
from the manner in which Buyer disburses the Repurchase Transaction to Seller or otherwise, or any waiver of the terms of any Repurchase Document by Buyer or other failure of Buyer to require full compliance with the Repurchase Documents.
Guarantor’s liability under this Guaranty shall continue until all sums due under the Repurchase Documents have been paid in full and all other performance required under the Repurchase Documents has been rendered in full, except as expressly
provided otherwise (if at all) in this Guaranty. Guarantor’s liability under this Guaranty shall not be limited or affected in any way by any impairment or any diminution or loss of value of any Security whether caused by (a) hazardous
substances, (b) Buyer’s failure to perfect a security interest in any Security, (c) any disability or other defense(s) of Seller, (d) any acts or omissions of Buyer, or (e) any breach by Seller of any representation or
warranty contained in any Repurchase Document. 
 7.          Waivers of Rights and
Defenses. Guarantor waives any right to require Buyer to (a) proceed against Seller, (b) proceed against or exhaust any Security, or (c) pursue any other right or remedy for Guarantor’s benefit. Guarantor agrees that Buyer
may proceed against Guarantor with respect to the Guaranteed Obligations without taking any actions against Seller and without proceeding against or exhausting any Security. Guarantor agrees that Buyer may unqualifiedly exercise in its sole
discretion (or may waive or release, intentionally or unintentionally) any or all rights and remedies available to it against Seller without impairing Buyer’s rights and remedies in enforcing this Guaranty, under which Guarantor’s
liabilities shall remain independent and unconditional. Guarantor agrees and acknowledges that Buyer’s exercise (or waiver or release) of certain of such rights or remedies may affect or eliminate Guarantor’s right of subrogation or
recovery against Seller (if any) and that Guarantor may incur a partially or totally nonreimbursible liability in performing under this Guaranty. Guarantor has assumed the risk of any such loss of subrogation rights, even if caused by Buyer’s
acts or omissions. If Buyer’s enforcement of rights and remedies, or the manner thereof, limits or precludes Guarantor from exercising any right of subrogation that might otherwise exist, then the foregoing shall not in any way limit
Buyer’s rights to enforce this Guaranty. Without limiting the generality of any other waivers in this Guaranty, Guarantor expressly waives any statutory or other right that Guarantor might otherwise have to: (i) limit Guarantor’s
liability after a nonjudicial foreclosure sale to the difference between the Guaranteed Obligations and the fair market value of the property or interests sold at such nonjudicial foreclosure sale or to any other extent, (ii) otherwise limit
Buyer’s right to recover a deficiency judgment after any foreclosure sale, or (iii) require Buyer to exhaust its Security before Buyer may obtain a personal judgment for any deficiency. Any proceeds of a foreclosure or similar sale may be
applied first to any obligations of Seller that do not also constitute Guaranteed Obligations within the meaning of this Guaranty. Guarantor acknowledges and agrees that any nonrecourse or exculpation provided for in any Repurchase Document, or any
other provision of a Repurchase Document limiting Buyer’s recourse to specific Security or limiting Buyer’s right to enforce a deficiency judgment against Seller or any other Person, shall have absolutely no application to Guarantor’s
liability under this Guaranty. To the extent that Buyer collects or receives any sums or payments from Seller, Buyer shall have the right, but not the 

  

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obligation, to apply such amounts first to that portion of Seller’s indebtedness and obligations to Buyer (if any) that is not covered by this Guaranty,
regardless of the manner in which any such payments and/or amounts are characterized by the Person making payment. 
 8.          Additional Waivers. Guarantor waives diligence and all demands, protests, presentments and notices of every kind or nature, including notices of protest, dishonor,
nonpayment, acceptance of this Guaranty and the creation, renewal, extension, modification or accrual of any of the Guaranteed Obligations. Guarantor further waives the right to plead any and all statutes of limitations as a defense to
Guarantor’s liability under this Guaranty or the enforcement of this Guaranty. No failure or delay on Buyer’s part in exercising any power, right or privilege under this Guaranty shall impair or waive any such power, right or privilege.

 9.          No Duty to Prove Loss. To the extent that Guarantor at any time
incurs any liability under this Guaranty, Guarantor shall immediately pay Buyer (to be applied on account of the Guaranteed Obligations) the amount provided for in this Guaranty, without any requirement that Buyer demonstrate that Buyer has
currently suffered any loss or that Buyer has otherwise exercised (to any degree) or exhausted any of Buyer’s rights or remedies with respect to Seller or any Security. 
 10.        Full Knowledge. Guarantor acknowledges, represents, and warrants that it has had a full and adequate opportunity to review the Repurchase
Documents, the transaction contemplated by the Repurchase Documents, and all underlying facts relating to such transaction. Guarantor represents and warrants that it fully understands: (a) the remedies Buyer may pursue against Seller and/or
Guarantor in the event of a default under the Repurchase Documents, (b) the value (if any) and character of any Security, and (c) Seller’s financial condition and ability to perform under the Repurchase Documents. Guarantor agrees to
keep itself fully informed regarding all aspects of the foregoing and the performance of Seller’s obligations to Buyer. Buyer has no duty, whether now or in the future, to disclose to Guarantor any information pertaining to Seller, the
Repurchase Transaction or any Security. If at any time provided for in the Repurchase Documents, then Guarantor agrees and acknowledges that an Insolvency Proceeding affecting Guarantor, or other actions or events relating to Guarantor (including
Guarantor’s change in financial position), as set forth in the Repurchase Documents, may be event(s) of default under the Repurchase Documents. 
 11.        Representations and Warranties. Guarantor acknowledges, represents, and warrants as follows, and acknowledges that Buyer is relying upon the following
acknowledgments, representations, and warranties by Guarantor in making the Repurchase Transaction: 
 (a)          Repurchase Documents. This Guaranty has been duly authorized, executed, and delivered by Guarantor, and is fully valid, binding, and enforceable against Guarantor, in
accordance with its terms, subject to the effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws now and hereafter in effect relating to or affecting the rights and remedies of creditors and the effect of general
principles of equity, whether enforcement is considered in a proceeding or equity or at law. 
 (b)          No Conflict. The execution, delivery, and performance of this Guaranty will not violate any provision of any law, regulation, judgment, order, decree, determination, or
award of any court, arbitrator or governmental authority, or of any mortgage, indenture, loan, or security agreement, lease, contract or other agreement, instrument or undertaking to which Guarantor is a party, in any material respect, or that
purports to bind Guarantor or any of Guarantor’s property or assets. 
 (c)          No Third Party Consent Required. No consent of any Person (including creditors or partners, members, stockholders, or other owners of Guarantor) is required in connection
with Guarantor’s execution of this Guaranty or performance of Guarantor’s obligations under this Guaranty. 

  

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Guarantor’s execution of, and obligations under, this Guaranty are not contingent upon any consent, license, permit, approval, or authorization of,
exemption by, notice or report to, or registration, filing, or declaration with, any governmental authority, bureau, or agency, whether local, state, federal, or foreign. 
 (d)          Authority and Execution. Guarantor is a corporation duly organized and validly existing under the laws of the State of
Maryland. Guarantor is qualified to do business, validly existing and is, to the extent determinable, in good standing, in all other jurisdictions in which the nature of the business conducted by it makes such qualification necessary, except where
failure so to qualify would not have a material effect on its property, business or financial condition or prospects. Guarantor has full power, authority, and legal right to execute, deliver and perform its obligations under this Guaranty. Guarantor
has taken all necessary corporate and legal action to authorize this Guaranty, which has been duly executed and delivered and is a legal, valid, and binding obligation of Guarantor, enforceable in accordance with its terms. 
 (e)          No Representations by Buyer. Guarantor delivers this Guaranty based
solely upon its own independent investigation and based in no part upon any representation, statement, or assurance by Buyer. 
 12.        Reimbursement and Subrogation Rights. Except to the extent that Buyer notifies Guarantor to the contrary in writing from time to time: 
 (a)          General Deferral of Reimbursement. Guarantor waives any right to be
reimbursed by Seller for any payment(s) made by Guarantor on account of the Guaranteed Obligations, unless and until all amounts under the Repurchase Documents have been paid in full and all periods within which such payments may be set aside or
invalidated have expired. Guarantor acknowledges that it has received adequate consideration for execution of this Guaranty by virtue of Buyer’s entering into the Repurchase Transaction (which benefits Guarantor, as an indirect beneficial owner
of Seller) and Guarantor does not require or expect, and is not entitled to, any other right of reimbursement against Seller as consideration for this Guaranty. 
 (b)          Deferral of Subrogation and Contribution. Guarantor agrees it shall not assert any right of subrogation against Seller or
Buyer, or right of subrogation against any Security unless and until in Buyer’s reasonable determination (a) all amounts due under the Repurchase Documents have been paid in full and all other performance required under the Repurchase
Documents has been rendered in full to Buyer; and (b) all periods within which such payment and performance may be set aside or invalidated have expired (such deferral of Guarantor’s subrogation and contribution rights, the
“Subrogation Deferral”). If any amounts shall be paid to Guarantor in violation of subsections (a) or (b) of this Section 12, such amount shall be held in trust for the benefit of Buyer and shall forthwith be paid to
Buyer to be credited and applied to the payment of the Guaranteed Obligations, whether matured or unmatured; provided, however, nothing contained herein shall prohibit Seller from making a dividend to Guarantor at any time. Immediately upon the
occurrence of such payment by Guarantor to Buyer, any and all duties owed by Guarantor to Buyer with respect to Guarantor’s holding of such amounts for Buyer shall be satisfied and discharged. 
 (c)          Effect of Invalidation. To the extent that a court of competent
jurisdiction determines that Guarantor’s Subrogation Deferral is void or voidable for any reason, Guarantor agrees, notwithstanding any acts or omissions by Buyer, that Guarantor’s rights of subrogation against Seller or Buyer and
Guarantor’s right of subrogation against any Security shall at all times be junior and subordinate to Buyer’s rights against Seller and to Buyer’s right, title, and interest in such Security. 
  

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 13.        Claims in Insolvency Proceeding. Guarantor
shall not file any claim in any Insolvency Proceeding affecting Seller unless Guarantor simultaneously assigns and transfers such claim to Buyer, without consideration, pursuant to documentation fully satisfactory to Buyer. Guarantor shall
automatically be deemed to have assigned and transferred such claim to Buyer whether or not Guarantor executes documentation to such effect. By executing this Guaranty, Guarantor hereby authorizes Buyer (and grants Buyer a power of attorney coupled
with an interest, and hence irrevocable) to execute and file such assignment and transfer documentation on Guarantor’s behalf, which power of attorney may only be exercised by Buyer following the occurrence and continuance of an Event of
Default. Buyer shall have the sole right to vote, receive distributions, and exercise all other rights with respect to any such claim, provided, however, that if and when the Guaranteed Obligations have been paid in full Buyer shall, subject to
Section 14 below, relinquish all such rights, reassign such claim to Guarantor and release to Guarantor any further payments received on account of any such claim. 
 14.        Buyer’s Disgorgement of Payments. Upon payment of all or any portion of the Guaranteed Obligations, Guarantor’s obligations under this Guaranty shall
continue and remain in full force and effect if all or any part of such payment is, pursuant to any Insolvency Proceeding or otherwise, avoided or recovered directly or indirectly from Buyer as a preference, fraudulent transfer, or otherwise
irrespective of (a) any notice of revocation given by Guarantor prior to such avoidance or recovery, or (b) payment in full of the Repurchase Transaction. Guarantor’s liability under this Guaranty shall continue until all periods have
expired within which Buyer could (on account of Insolvency Proceedings, whether or not then pending, affecting Seller, or any other Person) be required to return, repay, or disgorge any amount paid at any time on account of the Guaranteed
Obligations. 
 15.        Financial Information. Guarantor shall provide Buyer with the
following financial and reporting information: 
 (a)          as soon as
available and in any event within forty-five (45) days after the end of each of the first three quarterly fiscal periods of each fiscal year of Guarantor and its consolidated Subsidiaries, the unaudited, consolidated balance sheets of Guarantor
and its consolidated Subsidiaries as at the end of such period and the related unaudited, consolidated statements of income and retained earnings and of cash flows of Guarantor and its consolidated Subsidiaries for such period and the portion of the
fiscal year through the end of such period, setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, accompanied by a certificate of a Responsible Officer of Guarantor, which certificate
shall state that said consolidated financial statements fairly present the consolidated financial condition and results of operations of Guarantor and its consolidated Subsidiaries in accordance with GAAP, consistently applied, as at the end of, and
for, such period (subject to normal year-end audit adjustments); 
 (b)          as soon as available and in any event within ninety (90) days after the end of each fiscal year of Guarantor commencing with the fiscal year ending December 31, 2007,
the consolidated financial statement of Guarantor and its consolidated Subsidiaries as at the end of such fiscal year, prepared in accordance with GAAP, including the consolidated balance sheets and related consolidated statements of income and
retained earnings and of cash flows for Guarantor and its consolidated Subsidiaries for such year, setting forth in each case in comparative form the figures for the previous fiscal year, accompanied by an opinion thereon of independent certified
public accountants of recognized national standing, which opinion shall not be qualified as to scope of audit or going concern, and shall state that said annual consolidated financial statements fairly present the consolidated financial condition
and results of operations of Guarantor and its consolidated Subsidiaries as at the end of, and for, such fiscal year in accordance with GAAP; and 
  

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 (c)          Within five
(5) business days after Buyer’s request made at any time or from time to time, such other reports and financial information relating to Guarantor that is in the possession of Guarantor as Buyer may reasonably request. 
 16.        Servicing. Guarantor acknowledges that neither it nor the has any rights to service the
Transaction Assets but only has rights, if any, as a party to the Servicing Agreement. Without limiting the generality of the foregoing and in the event that Seller or the Guarantor is deemed to retain any residual rights under the Servicing
Agreement, and for the avoidance of doubt, Guarantor grants, assigns and pledges hereby to Buyer a security interest in its respective rights under the Servicing Agreement and proceeds related thereto and in all instances, whether now owned or
hereafter acquired, now existing or hereafter created. The foregoing provision is intended to constitute a “security agreement or arrangement or other credit enhancement” (as defined under Sections 101(47)(v) and 741(7)(xi) of the
Bankruptcy Code) related to the Repurchase Agreement and the Transactions thereunder. 
 17.        Merger; No Conditions; Amendments. This Guaranty and documents referred to herein contain the entire agreement among the parties with respect to the matters set forth in this
Guaranty. This Guaranty supersedes all prior agreements among the parties with respect to the matters set forth in this Guaranty. No course of prior dealings among the parties, no usage of trade, and no parol or extrinsic evidence of any nature
shall be used to supplement, modify, or vary any terms of this Guaranty. This Guaranty is unconditional. There are no unsatisfied conditions to the full effectiveness of this Guaranty. No terms or provisions of this Guaranty may be changed, waived,
revoked, or amended without Guarantor’s and Buyer’s prior written consent. If any provision of this Guaranty is determined to be unenforceable, then all other provisions of this Guaranty shall remain fully effective. 
 18.        Governing Law; Enforcement. This Guaranty shall be governed solely by New York State internal
law (disregarding such state’s law on conflict of laws) notwithstanding the location of any Security. Guarantor acknowledges that any restrictions, limitations, and prohibitions set forth in New York Real Property Actions and Proceedings Law
Sections 1301 and 1371 that would or might otherwise limit or establish conditions to Buyer’s recovery of a judgment against Guarantor if the Security were located in New York State shall have absolutely no application to Buyer’s
enforcement of this Guaranty as against Guarantor, except to the extent that real property Security is located within the State of New York. Guarantor acknowledges that this Guaranty is an “instrument for the payment of money only,” within
the meaning of New York Civil Practice Law and Rules Section 3213. In the event of any Proceeding between Seller or Guarantor and Buyer, including any Proceeding in which Buyer enforces or attempts to enforce this Guaranty or the Repurchase
Transaction against Seller or Guarantor, or in the event of Guarantor Litigation, Guarantor shall reimburse Buyer for all Legal Costs of such Proceeding. 
 19.        Fundamental Changes. Guarantor shall not wind up, liquidate, or dissolve its affairs or enter into any transaction of merger or consolidation, or sell, lease,
or otherwise dispose of (or agree to do any of the foregoing) all or substantially all of its property or assets, or change its state of formation or entity status unless Guarantor consummates any such fundamental change in accordance with the
Repurchase Documents. 
 20.        Further Assurances. Guarantor shall execute and deliver
such further documents, and perform such further acts, as Buyer may reasonably request to achieve the intent of the parties as expressed in this Guaranty, provided in each case that any such documentation is consistent with this Guaranty and with
the Repurchase Documents. 
  

 9 

 21.        Supplemental Provisions. 
 (a)          Other Guaranties. This Guaranty is in addition to and independent
of any other guaranty(ies) of Seller’s obligations executed by Guarantor in favor of Buyer. This Guaranty shall in no way limit or lessen any other liability, arising in any way, that Guarantor may have for the payment of any indebtedness of
Seller to Buyer. 
 (b)          Certain Entities. If Seller or
Guarantor is a partnership, limited liability company, or other unincorporated association, then: (a) Guarantor’s liability shall not be impaired by changes in the name or composition of Seller or Guarantor; and (b) the withdrawal or
removal of any partner(s) or member(s) of Seller or Guarantor shall not diminish Guarantor’s liability or (if Guarantor is a partnership) the liability of any withdrawing general partner of Guarantor. 
 (c)          Status of Seller. If this Guaranty defines more than one Person as
Seller, then any reference to Seller means any one or all of them, whether their liability is joint or several. 
 (d)          Counterparts. This Guaranty may be executed in counterparts. 
 22.        WAIVER OF TRIAL BY JURY, ETC. GUARANTOR AND BUYER WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING FROM OR RELATING TO THIS GUARANTY OR THE REPURCHASE DOCUMENTS OR
ANY OBLIGATION(S) OF GUARANTOR AND BUYER HEREUNDER OR UNDER THE REPURCHASE DOCUMENTS. FURTHER, GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY: 
 (1)        SUBMITS FOR ITSELF AND ITS PROPERTY SOLELY FOR PURPOSES OF ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY
JUDGMENT IN RESPECT THEREOF (AND NOT AS A GENERAL SUBMISSION TO NEW YORK JURISDICTION), TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF
NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF; 
 (2)        CONSENTS THAT
ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS, AND TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING
WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; 
 (3)        AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL),
POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND 
 (4)        AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER
JURISDICTION. 
  

 10 

 23.        Miscellaneous. 
 (a)          Assignability. Buyer may assign this Guaranty (in whole or in part)
together with any one or more of the Repurchase Documents in accordance with the provisions of the Repurchase Agreement, without in any way affecting Guarantor’s or Seller’s liability. Upon request in connection with any such assignment,
Guarantor shall deliver such documentation as Buyer shall reasonably request. Buyer may from time to time designate any Buyer Entity, subject to the terms and provisions of the Repurchase Documents, to hold and exercise any or all of Buyer’s
rights and remedies under this Guaranty. This Guaranty shall benefit Buyer and its permitted successors and assigns (including any Buyer Entity) and shall bind Guarantor and its heirs, executors, administrators, successors, and assigns. 

(b)          Notices.
All notices, requests, and demands to be made under this Guaranty shall be given in writing at the address set forth in the opening paragraph of this Guaranty together with a copies to (x) in the case of Guarantor, KBS Real Estate Investment
Trust, Inc. c/o KBS Capital Advisors, LLC, 620 Newport Center Drive, Suite 1300, Newport Beach, CA 92660, Attention: Jim Chiboucas, Telephone: 949-417-6555, Fax: 949-417-6523; and (y) in the case of Buyer, Clifford Chance US LLP, 31 West 52
nd Street, New York, New York 10019, Attention: David C. Djaha, Esq., Telephone: 212-878-8158, Fax: 212-878-8375, by any of the following means:
(i) hand delivery, with proof of attempted delivery, (ii) registered or certified, United States mail, postage prepaid or (iii) expedited or prepaid delivery service, either commercial or United States Postal Service, with proof of
attempted delivery, or (iv) by telecopier (with answerback acknowledged) provided that such telecopied notice must also be delivered by one of the means set forth in (i), (ii) or (iii) above. A party’s address may be changed by
notice to the other parties given in the same manner as provided above. A notice shall be deemed to have been given: (a) in the case of hand delivery, at the time of delivery, (b) in the case of registered or certified mail, when delivered
or the first attempted delivery on a Business Day, (c) in the case of expedited prepaid delivery upon the first attempted delivery on a Business Day, or (d) in the case telecopier, upon receipt of answerback confirmation, provided that
such telecopied notice was also delivered as required in this Section. A party receiving a notice which does not comply with the technical requirements for notice under this Section may elect to waive any deficiencies and treat the notice as having
been properly given. 
 (c)          Interpretation. The word
“include” and its variants shall be interpreted in each case as if followed by the words “without limitation.” 
 (d)          Confidentiality. Buyer shall not disclose or otherwise put financial and reporting information relating to Guarantor in the public domain and Buyer shall not disclose
confidential or non-public information regarding Guarantor, provided, however, that (A) if Buyer is compelled as a matter of law to disclose any such information, Buyer may disclose such information as is required by law, and
(B) this subsection shall not apply to any information which is or becomes generally available to the public through no action by Buyer or which is or becomes available to Buyer on a nonconfidential basis from a source other than
Guarantor. Notwithstanding the foregoing, Buyer may, subject to compliance with applicable securities laws, disclose without limitation of any kind, any information with respect to the “tax treatment” and “tax structure” (in each
case, within the meaning of Treasury Regulation Section 1.6011-4(b)(3)(iii)) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax
treatment and tax structure. 
 24.        Business Purposes. Guarantor acknowledges that this
Guaranty is executed and delivered for business and commercial purposes, and not for personal, family, household, consumer, or agricultural purposes. Guarantor acknowledges that Guarantor is not entitled to, and does not require the benefits of, any
rights, protections, or disclosures that would or may be required if this Guaranty were given for 

  

 11 

 
personal, family, household, consumer, or agricultural purposes. Guarantor acknowledges that none of Guarantor’s obligation(s) under this Guaranty
constitute(s) a “debt” within the meaning of the United States Fair Debt Collection Practices Act, 15 U.S.C. § 1692a(5), and accordingly compliance with the requirements of such Act is not required if Buyer (directly or acting through
its counsel) makes any demand or commences any action to enforce this Guaranty. 
 25.        No
Third-Party Beneficiaries. This Guaranty is executed and delivered for the benefit of Buyer and its heirs, successors, and assigns, and is not intended to benefit any third party. 
 26.        CERTAIN ACKNOWLEDGMENTS BY GUARANTOR. GUARANTOR ACKNOWLEDGES THAT BEFORE EXECUTING THIS GUARANTY: (A) GUARANTOR HAS HAD THE
OPPORTUNITY TO REVIEW IT WITH AN ATTORNEY OF GUARANTOR’S CHOICE; (B) BUYER HAS RECOMMENDED TO GUARANTOR THAT GUARANTOR OBTAIN SEPARATE COUNSEL, INDEPENDENT OF SELLER’S COUNSEL, REGARDING THIS GUARANTY; AND (C) GUARANTOR HAS
CAREFULLY READ THIS GUARANTY AND UNDERSTOOD THE MEANING AND EFFECT OF ITS TERMS, INCLUDING ALL WAIVERS AND ACKNOWLEDGMENTS CONTAINED IN THIS GUARANTY AND THE FULL EFFECT OF SUCH WAIVERS AND THE SCOPE OF GUARANTOR’S OBLIGATIONS UNDER THIS
GUARANTY. 
 IN WITNESS WHEREOF, Guarantor has duly executed and delivered this Guaranty as of the day and year first above
written. 
 [SIGNATURE PAGE FOLLOWS] 
  

 12 

									
		 	 GUARANTOR:

			
		 		 	 KBS REAL ESTATE INVESTMENT TRUST, INC.,
 a Maryland corporation,

					
		 		 	 By:
	 	 /s/ Charles J. Schreiber, Jr.
	  	
		 		 		 	 Charles J. Schreiber, Jr.
	  	
		 		 		 	 Chief Executive Officer
	  	

  
  
  
  
  
 [SIGNATURE PAGE TO GUARANTY]Exhibit 10.1

 Exhibit 10.1 
 TERRITORIAL BANCORP INC. 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT (the “Agreement”) is made and entered into this
    th day of                 , 2009, by and between Territorial Bancorp Inc., a corporation located at 1132 Bishop Street,
22nd Floor, Honolulu, Hawaii 96813 (the “Company”), and Allan S. Kitagawa (“Executive”). 
 WITNESSETH 
 WHEREAS, Executive
is currently employed as Chief Executive Officer and President of Territorial Savings Bank (the “Bank”); and 
 WHEREAS, the
Company desires to assure itself of the continued availability of the Executive’s services as provided in this Agreement; and 
 WHEREAS, Executive is willing to serve the Company on the terms and conditions hereinafter set forth; and 
 WHEREAS,
Executive has previously entered into a separate employment agreement with the Bank. 
 NOW, THEREFORE, in consideration of the mutual
covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows: 
 1. Employment. During
the term of this Agreement, which is effective as of the date first set forth above (the “Commencement Date”), Executive shall serve in the capacity of Chief Executive Officer and President of the Company. Executive shall render such
administrative and management services to the Company as are currently rendered and as are customarily performed by persons situated in a similar executive capacity. Executive shall promote the business of the Company. Executive’s other duties
shall be such as the Board of Directors of the Company (the “Board of Directors” or “Board”) may from time to time reasonably direct, including normal duties as an officer of the Company. 
 2. Service on the Board of Directors. During the term of this Agreement, Executive will continue to serve on the Board of Directors of the Company as a director.
If at any time during the term of this Agreement Executive shall fail to be re-nominated to the Board of Directors or re-appointed as the Chairman of the Board other than for reasons of Just Cause (as defined in Section 9(d) of this Agreement),
Executive shall have “Good Reason” (as defined in Section 9(b) of this Agreement) to terminate his employment under this Agreement and Executive shall have no further obligations under this Agreement. 

 3. Base Compensation. The Company agrees to pay Executive during the Term of this Agreement (as hereinafter
defined in Section 7) a base salary at the rate of $             per annum, payable in accordance with the customary payroll practices of the Company; provided, however, that
the rate of Executive’s base salary shall be reviewed by the Board of Directors not less often than annually, and Executive shall be entitled to receive annual increases at such percentage or in such an amount as the Board of Directors, in its
sole discretion, may decide. 
 4. Discretionary Bonus. Executive shall be entitled to receive an annual bonus in an amount which is based on the
bonus program maintained by the Company as of the date of this Agreement and shall be eligible to participate in any future bonus program adopted by the Company in an equitable manner. No other compensation provided for in this Agreement shall be
deemed a substitute for Executive’s right to receive bonuses when and as declared by the Board of Directors or as provided for by any plan or program of the Company. 
 5. Expenses. During the term of this Agreement, Executive shall be entitled to receive prompt reimbursement of all reasonable expenses incurred (in accordance with the policies and procedures of the Company) in
performing services under this Agreement, provided that Executive properly accounts for expenses in accordance with the policies of the Company and provided further that all such reimbursements pursuant to this Section 5 shall be paid promptly
by the Company and in any event no later than March 15 of the year immediately following the year in which the expense was incurred. 
 6. Employee
Benefits. 
 (a) Participation in Retirement and Executive Benefit Plans. Executive shall be entitled, while employed under
the terms of this Agreement, to receive all benefits under any tax-qualified or non-qualified employee benefit plan or arrangement in effect as of the date of this Agreement or that the Company implements at any time during the term of this
Agreement. Executive shall be entitled to participate in such future plans or arrangements on the same terms as other employees of the Company or as established by the Company for Executive or other selected employees. 
 (b) Fringe Benefits. Executive shall be entitled to receive any benefits under any fringe benefit plan or policy that is in effect as of
the date of this Agreement, including any discount or reduced fee employee loan program, or that the Company implements at any time during the term of this Agreement, on the same terms as the Company’s senior management employees. Nothing paid
to Executive under any plan or arrangement presently in effect or made available in the future will be deemed to be in lieu of base salary or other compensation to Executive under this Agreement. 
 (c) Automobile, Cellular Phone Use, Computer and Memberships. The Company or the Bank shall provide Executive with the use of an automobile
in accordance with the Company’s or the Bank’s automobile policy for executive vice presidents and above, as in effect from time to time. The Company or the Bank shall annually include on Executive’s Form W-2 any amount attributable
to Executive’s personal use of such automobile. The Company or the Bank shall also provide Executive with the use of a cellular phone and shall pay (or reimburse Executive) for all reasonable expenses related to the use of such phone. The
Company or the 

  

 2 

 
Bank shall also provide Executive with the use of a personal digital assistant or similar device, and home, portable and office computers and shall pay (or
reimburse Executive) for all reasonable expenses related to the use of such computers or devices. In addition, the Company or the Bank shall reimburse or pay Executive amounts sufficient to establish or maintain membership in any club or
organization (business, social or otherwise) to which Executive is a member as of the date of this Agreement, including but not limited to the Waialae Country Club and Plaza Club (including such fees or dues relating to the use of the club or
organization). 
 (d) Paid Leave Time. Executive shall be entitled to leave time in accordance with the standard policies or
practices of the Company for senior executive officers, as in effect from time to time. 
 7. Term of Agreement. Executive’s employment under
this Agreement shall be deemed to have commenced as of the Commencement Date and shall continue for a period of thirty-six (36) calendar months from the Commencement Date. Commencing on the first anniversary of the Commencement Date and
continuing on each anniversary thereafter (each an “Anniversary Date”), the disinterested members of the Board of Directors of the Company may extend the Agreement an additional year such that the remaining term of the Agreement shall be
thirty-six (36) months, unless Executive elects not to extend the term of this Agreement by giving written notice in accordance with Section 15 of this Agreement. The Board of Directors of the Company will review the Agreement and
Executive’s performance annually for purposes of determining whether to extend the Agreement and the rationale and results thereof shall be included in the minutes of the Board’s meeting. The Board of Directors of the Company shall give
written notice to Executive as soon as possible after such review as to whether the Agreement is to be extended; provided, however, if the Board fails to conduct such review or if written notice of nonrenewal is provided to Executive, then in such
case the term of this Agreement shall become fixed and shall cease at the end of thirty-six (36) full calendar months following the Anniversary Date. 
 8. Noncompetition and Confidentiality. 
 (a) Executive shall devote his full time and attention to the performance of his
employment under this Agreement. Upon any termination of Executive’s employment hereunder pursuant to Section 9(b) of this Agreement (other than a termination which occurs after the effective date of a Change in Control), Executive agrees
not to compete with the Company or any subsidiary of the Company for a period of one (1) year following such termination in any city, town or county in which Executive’s normal business office is located or in which the Company or any
subsidiary of the Company has an office or has filed an application for regulatory approval to establish an office, determined as of the effective date of such termination, except as agreed to pursuant to a resolution duly adopted by the Board of
Directors. Executive agrees that during such period and within said cities, towns and counties, Executive shall not work for or advise, consult or otherwise serve with, directly or indirectly, any entity whose business materially competes with the
depository, lending or other business activities of the Company or any subsidiary of the Company. The parties hereto, recognizing that irreparable injury will result to the Company or any subsidiary of the Company, and their business and property in
the event of Executive’s breach of this Section 8(a), agree that in the event of any such breach by Executive, the Company will be entitled, in addition to any other remedies and 

  

 3 

 
damages available, to an injunction to restrain the violation hereof by Executive, Executive’s partners, agents, servants, employees and all persons
acting for or under the direction of Executive. Executive represents and admits that in the event he terminates employment with the Company pursuant to Section 9(b) of this Agreement, Executive’s experience and capabilities are such that
Executive can obtain employment in a business engaged in other lines and/or of a different nature than the Company, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood. Nothing herein will
be construed as prohibiting the Company from pursuing any other remedies available to the Company for breach or threatened breach, including the recovery of damages from Executive. 
 (b) Executive recognizes and acknowledges that the knowledge of the business activities and plans for business activities of the Company is a valuable,
special and unique asset of the business of the Company. Executive will not, during or after the term of his employment, disclose any knowledge of the past, present, planned or considered business activities of the Company to any person, firm,
corporation, or other entity for any reason or purpose whatsoever. Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived
from the business plans and activities of the Company. Further, Executive may disclose information regarding the business activities of the Company to the Office of Thrift Supervision (“OTS”) or other regulatory or judicial body pursuant
to a formal regulatory request or subpoena. 
 (c) Nothing contained in this Section 8 shall be deemed to prevent or limit the right of
Executive to invest in any entity which conducts business similar to that of the Company, solely as a passive or minority investor. 
 9. Termination.

 Executive’s employment under this Agreement shall be terminated upon any of the following occurrences: 
 (a) Death. Executive’s employment under this Agreement shall terminate upon his death. Executive’s estate shall be entitled to
receive payments of base salary, payable in accordance with the regular payroll practices of the Company, for sixty (60) days immediately following the date of Executive’s death and any other compensation accrued as of the date of death.

 (b) Termination of Employment by the Board of Directors Without Just Cause or by the Executive for Good Reason. In the event
that (i) the Board of Directors terminates Executive’s employment without “Just Cause” (as defined in Section 9(d)) or (ii) such employment is terminated by the Executive for “Good Reason” (as defined in
Section 9(b)(iii), Executive shall be entitled to: 
 (i) his base salary for the remaining term of the Agreement, including any renewals
or extensions thereof, at the current rate in effect pursuant to Section 3 of this Agreement, plus the amount of the annual cash bonus earned in the calendar year preceding the year of termination, and a cash equivalent amount equal to the
additional retirement benefits under any retirement program (whether 

  

 4 

 
tax-qualified or non-qualified) that Executive would have been entitled to had his employment continued through the remaining term of the Agreement (with the
amount of benefits determined by reference to the benefits received by the Executive or accrued on his behalf under such programs during the twelve (12) months preceding his termination). 
 (ii) coverage under the Company’s life insurance plans and non-taxable medical, health, and dental plans (each being a “Welfare Plan”) in
the same manner in which Executive received coverage on the last day of his employment with the Company. Executive and his covered dependents (if any) shall continue participating in such Welfare Plans, subject to the same premium contributions (if
any) on the part of Executive as were required immediately prior to his termination until the earlier of (i) his death; (ii) his employment by another employer other than one of which he is the majority owner; or (iii) three
(3) years from his termination date. 
 (iii) For purposes of this Agreement, termination of Executive’s employment hereunder for
“Good Reason” shall be limited to Executive’s voluntary termination of employment after the occurrence of any of the following events which have not been consented to in advance by Executive in writing; provided that Executive has
given written notice to the Company within ninety (90) days after the initial occurrence of such event and that the Company has been given at least thirty (30) days to cure the situation (but the Company may waive its right to cure):
(i) if Executive would be required to move his personal residence or perform his principal executive functions more than twenty-five (25) miles from Executive’s primary office as of the Commencement Date; (ii) if, in the
organizational structure of the Company, Executive would be required to report to a person or persons other than the Board of Directors; (iii) if the Company should fail to maintain Executive’s base compensation in effect pursuant to
Section 3 of this Agreement, or fail to maintain the existing employee benefit plans or arrangements in which Executive participates as of the date of this Agreement, including any material fringe benefit, bonus plan and/or retirement plan,
except to the extent that such reduction in compensation or benefit programs is part of an overall adjustment in compensation and benefits for all employees of the Company and the Executive is otherwise compensated for such an overall adjustment in
an equitable manner; (iv) if Executive would be assigned duties and responsibilities other than those normally associated with his position as referenced in Section 1 of this Agreement; (v) if Executive’s responsibilities or
authority have in any way been materially diminished or reduced other than for reasons of Just Cause; or (vi) if Executive is not re-elected to the Board of Directors or appointed as Chairman of the Board other than for reasons of Just Cause.

 (iv) The sum due under Section 9(b)(i) shall be paid in one lump sum within thirty (30) calendar days after such termination.
Notwithstanding the foregoing, in the event Executive is a Specified Employee (within the meaning of Treasury Regulations §1.409A-1(i)), then, to the extent necessary to avoid penalties under 

  

 5 

 
Code Section 409A, payment shall be withheld and shall be paid to Executive on the first day of the seventh month following Executive’s termination
of employment by the Company without Just Cause. 
 (v) For purposes of Section 9(b), termination of employment as used herein shall mean
“Separation from Service” as defined in Code Section 409A and the Treasury Regulations promulgated thereunder. 
 (c)
Disability. 
 (i) Termination by the Company of Executive’s employment based on “Disability” shall occur if:
(A) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, or last for a continuous period of not less than twelve
(12) months; (B) by reason of any medically determinable physical or mental impairment that can be expected to result in death, or last for continuous period of not less than twelve (12) months, Executive is receiving income
replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company; or (C) Executive is determined to be totally disabled by the Social Security Administration. Executive
shall be entitled to receive benefits under any short or long-term disability plan maintained by the Company. 
 (ii) The Company shall pay Executive, as disability pay, a monthly payment equal to three-quarters ( 3/4) of Executive’s monthly rate of base salary, plus any bonus paid to Executive for the preceding year. These disability payments shall commence within thirty (30) days of the date of Executive’s termination due to
Disability and will end on the earlier of (A) the date Executive returns to the full-time employment of the Company in the same capacity as he was employed prior to his termination for Disability and pursuant to an employment agreement between
Executive and the Company; (B) the date the Executive begins full-time employment with another employer; (C) the date Executive attains the normal age of retirement (as defined in the Company’s defined benefit pension plan) or begins
receiving benefits under any substitute retirement plan adopted by the Company; or (D) the date of Executive’s death. Notwithstanding any other provision to the contrary, the Company’s obligation for any payments required to be made
under this Section 9(c) shall be reduced by any proceeds received by Executive from disability income insurance or any other disability policy or plan maintained by the Company for Executive which was paid for by the Company as partial
satisfaction of its obligation under this Section 9(c). 
 (iii) The Company shall cause to be continued life insurance and
non-taxable medical and dental coverage substantially identical to the coverage maintained by the Company for Executive prior to his termination for Disability. This coverage shall cease upon the earlier of (A) the date Executive returns to the
full-time employment of the Company, in the same capacity as he was employed prior to his termination for Disability and pursuant to an employment agreement between 

  

 6 

 
Executive and the Company; (B) the date Executive begins full-time employment with another employer; (C) the date Executive attains the normal age
of retirement or begins receiving benefits under the Company’s retirement plan; or (D) the date of Executive’s death. 
 (iv)
Notwithstanding the foregoing, there will be no reduction in the compensation otherwise payable to Executive during any period during which Executive is incapable of performing his duties hereunder by reason of temporary disability. 
 (d) Termination of Employment by the Board of Directors for Just Cause. In the event Executive’s employment is terminated for
“Just Cause,” no continued payments or benefits shall be due under this Agreement. For purposes of this Agreement, termination for “Just Cause” shall be defined as termination due to Executive’s personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order, or material breach of any provision of this Agreement Any determination of “Just Cause” as defined by this Section 9(d) shall be determined by a majority vote of the entire membership of the Board of Directors
at a meeting of such Board called and held for the purpose (after reasonable notice to Executive and an opportunity for Executive to be heard before the Board with counsel), of finding that in the good faith opinion of the Board, Executive committed
the conduct described above and specifying the particulars thereof. 
 (e) Voluntary Termination of Employment by Executive Other Than
for Good Reason. The voluntary termination of employment by Executive during the term of this Agreement, other than for Good Reason, with the delivery of no less than sixty (60) days written notice to the Board of Directors, entitles
Executive to receive only the base salary, vested rights, and all employee benefits up to Executive’s termination date. 
 (f)
Termination and Board Membership. To the extent Executive is a member of the board of directors of the Company or the Bank or any of their affiliates on the date of an involuntary termination of employment with the Company or the Bank
or a termination of employment for Good Reason, Executive shall be deemed to have automatically resigned from all of the boards of directors immediately following such termination of employment with the Company or the Bank. 
 (g) Termination and Release of Claims. Any payments to be made under this Agreement shall be contingent on Executive’s execution and
non-revocation of a mutual release in a form acceptable to the Company and the Bank; provided, however, that if the Company or the Bank refuse to execute such mutual release, the Executive’s obligation to execute and not revoke the release as a
precondition to receiving such severance benefits shall terminate. The mutual release agreement shall release the Company and the Bank from any and all claims and other actions by Executive and it shall also release the Executive from any and all
claims and other actions by the Company and the Bank. 
  

 7 

 10. Change in Control. 
 (a) For purposes of this Agreement, a Change in Control of the Company or the Bank shall be deemed to have occurred if and when: 
 (i) there occurs a change in control of the Company or the Bank within the meaning of the Home Owners Loan Act of 1933 or 12 C.F.R. Part 574 as applied to the Company or the Bank as if it were a federally chartered
institution; 
 (ii) as a result of, or in connection with, any merger or other business combination, sale of assets or contested election,
wherein the persons who were non-employee directors of the Company or the Bank before such transaction or event cease to constitute a majority of the Board of Directors of the Company or the Bank or any successor to the Company or the Bank;

 (iii) the Company or the Bank transfers substantially all of its assets to another corporation or entity which is not an affiliate of the
Company or the Bank; or 
 (iv) the Company or the Bank is merged or consolidated with another corporation or entity and, as a result of such
merger or consolidation, less than sixty percent (60%) of the equity interest in the surviving or resulting corporation is owned by the former shareholders or depositors of the Company or the Bank. 
 For purposes of Section 10 of this Agreement, a Change in Control shall not occur as a result of the Conversion. 
 (b) If Executive’s employment is terminated for any reason other than for Just Cause within twelve months following a Change in Control, Executive
shall be entitled to receive the greater of the following: 
 (i) the amount of the payment and benefits specified in
Section 9(b), or 
 (ii) the amount of the payment and benefits specified in Section 10(c). 
 Such payment shall be made in a lump sum within thirty (30) days following Executive’s termination of employment. For purposes
of this Section 10, termination of employment as used herein shall mean “Separation from Service” as defined in Code Section 409A and the Treasury Regulations promulgated thereunder. Notwithstanding the foregoing, in the event
Executive is a Specified Employee (within the meaning of Treasury Regulations §1.409A-1(i)), then, to the extent necessary to avoid penalties under Code Section 409A, payment shall be withheld and shall be paid to Executive on the first
day of the seventh month following Executive’s termination of employment. 
 (c) For purposes of Section 10(b)(ii), the amount of
payment and benefits shall be equal to: 
 (i) an amount equal to three (3) times his “base amount,” as defined
in Code Section 280G(b)(3), less one (1) dollar; and 
  

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 (ii) coverage under the Company’s or Bank’s life insurance plan and non-taxable
medical, health and dental plans (each being a “Welfare Plan”) in the same manner in which Executive received coverage on the last day of his employment with the Company. Executive and his covered dependents (if any) shall continue
participating in such Welfare Plans, subject to the same premium contributions (if any) on the part of Executive as were required immediately prior to his termination until the earlier of (i) his death; (ii) his employment by another
employer other than one of which he is the majority owner; or (iii) three (3) years from his termination date. 
 11. Successors and
Assigns. 
 (a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which
shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets of the Company. 
 (b) Since the Company is contracting for the unique and personal skills of Executive, Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of the Company.

 12. Amendments. No amendments or additions to this Agreement shall be binding upon the parties hereto unless made in writing and signed by both
parties, except as herein otherwise specifically provided. 
 13. Applicable Law. This agreement shall be governed in all respects, whether as to
validity, construction, capacity, performance or otherwise, by the laws of the State of Hawaii, except to the extent that Federal law shall be deemed to apply. 
 14. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 
 15. Notices. Any notices, requests, demands and other communications provided for or deemed necessary by this Agreement shall be sufficient if set forth in
writing and delivered in person or sent by registered or certified mail, postage prepaid, to, in the case of Executive, the last address filed in writing by Executive with the Company, or, in the case of the Company, to the Company at its main
office to the attention of the Board of Directors. 
 16. Indemnification. The Company shall provide Executive (including his heirs, executors and
administrators) with coverage under a standard directors’ and officers’ liability insurance policy at its expense, or in lieu thereof, shall indemnify Executive (and his heirs, executors and administrators) to the fullest extent permitted
under law and applicable regulation or under any existing indemnification agreement by and between Executive and the Company against all expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit or
proceeding in which he may be involved by reason of his having been a director or officer of the Company (whether or not he continues to be a director or officer at the time of incurring such expenses or liabilities). Such expenses and liabilities
may include, but are not limited to, judgment, court costs and attorneys’ fees and the cost of reasonable settlements. The 

  

 9 

 
Company shall pay such expenses and liabilities in advance of a final judicial decision (hereinafter an “advancement of expenses”); provided,
however, that, an advancement of expenses incurred by Executive in his capacity as a director or executive officer of the Company (and not in any other capacity in which service was or is rendered by Executive including, without limitation, services
to an employee benefit plan) shall be made only upon delivery to the Company of an undertaking, by or on behalf of Executive, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no
further right to appeal that Executive is not entitled to be indemnified for such expenses under this Section 16 or otherwise. Indemnification under this Section 16 shall be made in accordance with 12 C.F.R. §545.121 or any successor
thereto. 
 17. Entire Agreement. This Agreement together with any understanding or modifications thereof as may be agreed to in writing by the
parties, shall constitute the entire agreement between the parties hereto. 
 18. Source of Payments. Notwithstanding any provision in this Agreement
to the contrary, to the extent payments and benefits, as provided for under this Agreement, are paid or received by Executive under the employment agreement in effect between Executive and the Bank, the payments and benefits paid by the Bank will be
subtracted from any amount or benefit due simultaneously to Executive under similar provisions of this Agreement. Payments will be allocated in proportion to the level of activity and the time expended by Executive on activities related to the
Company and the Bank, respectively, as determined by the Company and the Bank. 
 19. Required Regulatory Provisions. 
 (a) The Company may terminate Executive’s employment at any time, but any termination by the Company, other than Termination for Just Cause, shall
not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall not have the right to receive compensation or other benefits for any period after Termination for Just Cause as defined in Section 9(d)
hereinabove. 
 (b) Notwithstanding any other provision of this Agreement to the contrary, any payments made to the Executive pursuant to
this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 12 U.S.C. Section 1828(k), FDIC regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments. 
 20. Arbitration. 
 (a) Any dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators sitting in a location selected by Executive within fifty (50) miles from the location of the Company,
in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be entitled to seek specific
performance of his right to be paid until the date of termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 
  

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 (b) In the event any dispute or controversy arising under or in connection with Executive’s
termination is resolved in favor of Executive, whether by judgment, arbitration or settlement, Executive shall be entitled to the payment of all back-pay, including salary, bonuses and any other cash compensation, fringe benefits and any
compensation and benefits due Executive under this Agreement. 
 21. Payment of Costs and Legal
Fees. All reasonable costs and legal fees paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Company, if Executive is successful with respect to such
dispute or question of interpretation pursuant to a legal judgment, arbitration or settlement. Such reimbursements shall be paid to Executive within two and one-half (2  1/2
) months after the dispute is settled or resolved in Executive’s favor. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement on the latest date set forth below.

  

							
		 		 	TERRITORIAL BANCORP INC.
		 		 	(in organization)
				
	                                      
	 		 	By:	 	  

	Date	 		 		 	Chairman of the Compensation Committee
				
	  
	 		 		 	  

	Date	 		 		 	Allan S. Kitagawa

  

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