Document:

Exhibit 10.1

 

STOCK REPURCHASE AGREEMENT

 

This Stock Repurchase Agreement (this “Agreement”) is made and entered into as of December 8, 2017, by and between Arch Coal, Inc., a Delaware corporation (the “Company”), and each stockholder of the Company listed on Schedule A hereto (each, a “Seller,” and together, the “Sellers”).

 

RECITALS

 

A.                                    The Company desires to repurchase from the Sellers, and the Sellers desire to sell to the Company, a total of 500,000 shares of Class A Common Stock of the Company, par value $.01 per share (the “Shares”), on the terms and conditions set forth in this Agreement.

 

B.                                    The Company is permitted, pursuant to Sections 154, 160 and 244 of the General Corporation Law of the State of Delaware, its Amended and Restated Certificate of Incorporation and its Amended and Restated Bylaws, to repurchase the Shares on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows.

 

1.                                      Purchase and Sale of Shares.  Subject to the terms and conditions of this Agreement, the Company hereby agrees to purchase the Shares, and each Seller hereby agrees to sell to the Company the number of Shares set forth opposite such Seller’s name on Schedule A hereto, for a purchase price of $83.03 per share, resulting in an aggregate purchase price of $41,515,000 (the “Purchase Price”), as provided herein.

 

2.                                      Closing.  The closing of the purchase and sale of the Shares (the “Closing”) shall occur at the offices of Latham & Watkins LLP, 885 Third Avenue, New York, New York 10022 on December 14, 2017, or such other date thereafter as is mutually agreed in writing by the Company and the Sellers (the “Closing Date”). At the Closing, the following deliveries will be made:

 

(a)                                 By the Company.  The Company will deliver to the Sellers full payment of the Purchase Price, by wire transfer to the bank account designated by the Sellers in writing at least one business day prior to the Closing; and

 

(b)                                 By the Sellers.

 

(i)                                     The Sellers will deliver to the Company, in form reasonably acceptable to the Company, such documents as may be reasonably required in order to effect a transfer of the Shares on the books of American Stock Transfer & Trust Company, LLC from the Sellers to the Company.

 

(ii)                                  Each Seller that is a “United States person” as defined in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended (the

 

 

“Code”), shall deliver to the Company a properly completed and duly executed IRS Form W-9.

 

(iii)                               Each Seller that is not a “United States person” as defined in Section 7701(a)(30) of the Code (a “Non-US Seller”) and that is a partnership for U.S. federal income tax purposes shall deliver to the Company a properly completed and duly executed IRS Form W-8IMY, together with a withholding statement, withholding certificates from each of its beneficial owners and such other documentation as may be required to claim (A) a full exemption from U.S. federal withholding tax under Sections 1471 through 1474 of the Code and (B) any applicable exemption from U.S. federal withholding tax under Section 1441 of the Code.

 

(iv)                              Each Non-US Seller that is a corporation for U.S. federal income tax purposes shall deliver to the Company a properly completed and duly executed IRS Form W-8BEN-E, claiming (A) a full exemption from U.S. federal withholding tax under Sections 1471 through 1474 of the Code and (B) any applicable exemption from U.S. federal withholding tax under Section 1441 of the Code.

 

3.                                      Representations and Warranties of the Company.  The Company hereby represents and warrants to the Sellers as follows:

 

(a)                                 The Company is a corporation validly existing under the laws of Delaware and has full legal right and corporate power and authority to enter into this Agreement and to consummate the transactions provided for herein.

 

(b)                                 The execution, delivery and performance by the Company of this Agreement have been duly authorized by all requisite corporate action of the Company. This Agreement, when executed and delivered by both parties, will be a valid and binding agreement of the Company enforceable against the Company in accordance with its terms, except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles.

 

(c)                                  The execution and delivery of, and performance by the Company of the Company’s obligations under, this Agreement do not and will not (i) violate or conflict with, in any respect, (A) any provision of law, rule or regulation, (B) any order, judgment or decree of any court or other agency or government applicable to the Company, (C) any provision of the Company’s organizational documents or (D) any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, to which the Company is a party or by which it is bound, or (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time, or both) a default under, or result in the creation or imposition of any pledge, lien, security interest, encumbrance, claim or equitable or legal interest (collectively, a “Lien”) upon any of the property or assets of the Company pursuant to any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or

 

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license, whether written or oral, express or implied, to which the Company is a party or by which it is bound, except, in the case of clauses (i)(A), (i)(B), (i)(D) and (ii), for any such violations, conflicts, breaches, defaults or events that would not, individually or in the aggregate, impair the ability of the Company to purchase the Shares or to consummate the transactions contemplated by this Agreement.

 

(d)                                 All consents, approvals, authorizations and orders required for the execution and delivery of this Agreement and the purchase of the Shares under this Agreement by the Company have been obtained and are in full force and effect, and the execution and delivery of this Agreement by the Company and the purchase of the Shares under this Agreement by the Company do not require (except for filings pursuant to 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) any filings with any governmental authority or court, or body or arbitrator having jurisdiction over the Company, except, in each case, as have already been made, obtained or waived or where the failure to obtain any such consent, approval, authorization, order or filing would not impair the ability of the Company to purchase the Shares or to consummate the transactions contemplated by this Agreement.

 

(e)                                  There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened that questions the validity of this Agreement, or the right of the Company to enter into this Agreement or to consummate the transactions contemplated by this Agreement. There are presently no outstanding judgments, decrees or orders of any court or any governmental or administrative agency against the Company that question the validity of this Agreement, or the right of the Company to enter into this Agreement or to consummate the transactions contemplated by this Agreement.

 

(f)                                   The Company has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for which the Sellers could become liable or otherwise obligated.

 

4.                                      Representations, Warranties and Covenants of the Sellers.  Each Seller hereby represents, warrants and agrees with the Company as follows:

 

(a)                                 Such Seller is validly existing under the laws of its jurisdiction of organization and has full legal right, power and authority to enter into this Agreement and to consummate the transactions provided for herein.

 

(b)                                 The execution, delivery and performance by such Seller of this Agreement have been duly authorized by all requisite action of such Seller. This Agreement, when executed and delivered by the parties, will be a valid and binding agreement of such Seller, enforceable against such Seller in accordance with its terms, except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles.

 

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(c)                                  Such Seller is, and at the Closing will be, the sole legal owner of and, will hold valid marketable title to, the Shares, free and clear of any Lien, and such Seller has not granted any rights to or interest in the Shares to any other person or entity. Such Seller further agrees not to sell, transfer, pledge or encumber the Shares or suffer any lien, security interest, claim or equitable or legal interest to attach to the Shares other than pursuant to this Agreement.

 

(d)                                 All consents, approvals, authorizations and orders required for the execution and delivery of this Agreement and the transfer of the Shares under this Agreement by such Seller have been obtained and are in full force and effect, and the execution and delivery of this Agreement by such Seller and the transfer of the Shares under this Agreement by such Seller do not require (except for filings pursuant to Section 16 or Regulation 13D under the Exchange Act) any filings with any governmental authority or court, or body or arbitrator having jurisdiction over such Seller, except, in each case, as have already been made, obtained or waived or where the failure to obtain any such consent, approval, authorization, order or filing would not impair the ability of such Seller to purchase the Shares or to consummate the transactions contemplated by this Agreement.

 

(e)                                  Such Seller (1) is a sophisticated person familiar with transactions similar to those contemplated by this Agreement, (2) has adequate information concerning the business and financial condition of the Company to make an informed decision regarding the transfer of the Shares and (3) has independently and without reliance upon the Company, and based on such information and the advice of such advisors as such Seller has deemed appropriate, made its own analysis and decision to enter into this Agreement. Such Seller has asked questions of the Company and has made a full evaluation of the risks and merits of the repurchase transaction that is the subject of this Agreement. Such Seller hereby waives any right to additional consideration with respect to the Shares. Such Seller acknowledges that none of the Company or its affiliates or agents is acting as a fiduciary or financial or investment adviser to such Seller, and has not given such Seller any investment advice, opinion or other information on whether the transfer of the Shares is prudent. Such Seller understands and acknowledges that the Company is not making, and has not made, any statement, representation or warranty to such Seller concerning: (i) the fairness or adequacy of the Purchase Price, (ii) the current or likely future value of the Shares, (iii) the markets, business, products, management, technical or marketing capabilities, financial affairs or prospects of the Company or (iv) any other matter that has been relied upon by such Seller or such Seller’s legal counsel or advisors in assessing the value of the Shares or determining whether to enter into this Agreement upon the terms and conditions set forth herein.

 

(f)                                   Such Seller acknowledges that (i) the Company or its affiliates or agents currently may have, and later may come into possession of, information with respect to the Company that is not known to such Seller and that may be material to a decision to transfer the Shares (“Seller Excluded Information”), (ii) such Seller has determined to transfer the Shares notwithstanding its lack of knowledge of the Seller Excluded Information and (iii) none of the Company or its affiliates or agents shall have any liability to such Seller, and such Seller waives and releases any claims that it might

 

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have against the Company or its affiliates or agents whether under applicable securities laws or otherwise, with respect to the nondisclosure of the Seller Excluded Information in connection with the transfer of the Shares and the transactions contemplated by this Agreement. Such Seller understands that the Company and its affiliates and agents will rely on the accuracy and truth of the foregoing representations, and such Seller hereby consents to such reliance.

 

(g)                                  Such Seller has reviewed with its own tax advisors the federal, state, local and foreign tax consequences of this sale of the Shares and the transactions contemplated by this Agreement. Such Seller is relying solely on such advisors and not on any statements or representations of the Company, the Company’s counsel or auditors or any of the Company’s agents. Such Seller understands that it (and not the Company) shall be solely responsible for its own tax liability that may arise as a result of this sale of the Shares or the transactions contemplated by this Agreement.

 

(h)                                 The execution and delivery of, and performance by such Seller of such Seller’s obligations under, this Agreement do not and will not (i) violate or conflict with, in any respect, (A) any provision of law, rule or regulation, (B) any order, judgment or decree of any court or other agency or government applicable to such Seller, (C) any provision of such Seller’s organizational documents or (D) any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, to which such Seller is a party or by which it is bound, or (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time, or both) a default under, or result in the creation or imposition of any Lien upon any of the property or assets of such Seller pursuant to any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, to which such Seller is a party or by which it is bound, except, in the case of clauses (i)(A), (i)(B), (i)(D) and (ii), for any such violations, conflicts, breaches, defaults or events that would not, individually or in the aggregate, impair the ability of such Seller to transfer the Shares or to consummate the transactions contemplated by this Agreement.

 

(i)                                     There is no action, suit, proceeding or investigation pending or, to such Seller’s knowledge, currently threatened that questions the validity of this Agreement, or the right of such Seller to enter into this Agreement or to consummate the transactions contemplated by this Agreement. There are presently no outstanding judgments, decrees or orders of any court or any governmental or administrative agency against such Seller that question the validity of this Agreement, or the right of such Seller to enter into this Agreement or to consummate the transactions contemplated by this Agreement.

 

(j)                                    Such Seller has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for which the Company could become liable or otherwise obligated.

 

(k)                                 The Purchase Price payable to the Sellers for the sale of the Shares is not subject to U.S. federal withholding tax, including under Sections 1441, 1445, and 1471 through 1474 of the Code. The purchase of Shares from each Seller constitutes a

 

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“substantially disproportionate redemption of stock,” as provided in Section 302(b)(2) of the Code, with respect to such Seller. The Shares offered by each Seller do not constitute “United States real property interests” within the meaning of Section 897(c) of the Code and the Treasury Regulations thereunder. No Seller that is not a partnership for U.S. federal income tax purposes owns, or has owned within the shorter of (i) such Seller’s holding period for the Shares and (ii) the five year period ending on the Closing Date, more than 5% of the fair market value of the Company’s Class A Common Stock. No partner of a Seller that is a partnership for U.S. federal income tax purposes (a “Partnership Seller”) and, to the knowledge of the Sellers, no beneficial owner of such partner if such partner is itself a partnership or other flow-through entity for U.S. federal income tax purposes, owns, or has owned within the shorter of (i) such Seller’s holding period for the Shares and (ii) the five year period ending on the Closing Date, more than 5% of the fair market value of the Company’s Class A Common Stock through its equity interest in one or more Partnership Sellers.

 

5.                                      Conditions of the Sellers’ Obligations at Closing.  The obligation of the Sellers to sell the Shares is subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

(a)                                 The representations and warranties contained in Section 3 hereof shall be true and correct in all respects as of the Closing.

 

(b)                                 The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Company on or before the Closing.

 

(c)                                  No government, court, tribunal, arbitrator, administrative agency, commission or other governmental official, authority or instrumentality shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction, order or other legal restraint (whether temporary, preliminary or permanent) which is in effect and which has the effect of making the sale of the Shares by the Sellers illegal or otherwise prohibiting or preventing consummation of the sale of the Shares by the Sellers.

 

6.                                      Conditions of the Company’s Obligations at Closing.  The obligation of the Company to purchase the Shares is subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

(a)                                 The representations and warranties contained in Section 4 hereof shall be true and correct in all respects as of the Closing.

 

(b)                                 Each Seller shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by each Seller on or before the Closing.

 

(c)                                  No government, court, tribunal, arbitrator, administrative agency, commission or other governmental official, authority or instrumentality shall have

 

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enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction, order or other legal restraint (whether temporary, preliminary or permanent) which is in effect and which has the effect of making the purchase of the Shares by the Company illegal or otherwise prohibiting or preventing consummation of the purchase of the Shares by the Company.

 

7.                                      Termination.  This Agreement shall terminate and the terms and conditions set forth herein shall be of no further force or effect (i) upon mutual agreement in writing by the Company and the Sellers or (ii) on December 22, 2017, provided the Closing has not occurred by such date; and provided that termination under this clause (ii) shall not excuse a party from liability for any breaches of this Agreement by such party prior to termination.

 

8.                                      Covenant Against Transfer.  Each Seller covenants that, upon signing this Agreement, it will not take any action to transfer the Shares to a third party or otherwise take any action to subject the Shares to any Lien.

 

9.                                      Tax Indemnity.  The Sellers shall, jointly and severally, indemnify, save and hold the Company harmless from and against (a) any and all Losses incurred that are directly attributable to (i) any breach or inaccuracy of any representation set forth in Section 4(k) hereof or (ii) any U.S. federal withholding taxes imposed with respect to the payment of the Purchase Price and (b) any Losses arising out of or resulting from the receipt of any payment pursuant to this Section 9. The term “Losses” shall mean any and all Taxes and reasonable expenses (including reasonable fees and expenses of attorneys, auditors, consultants and other agents), in each case to the extent paid by the Company, and the term “Taxes” shall mean (x) any federal, state or local tax, duty, fee, assessment or other similar governmental charge (including all interest and penalties thereon and additions thereto) and (y) any loss of or utilization of any net operating loss or other tax attribute. As a condition to the obligations in this Section 9, in the event that the Company becomes aware of any event or matter that could result in an indemnification obligation hereunder, the Company shall promptly (and in any event, prior to paying any Losses) notify the Sellers of such event or matter and shall give the Sellers a reasonable amount of time to pay any Losses directly prior to the Company paying any such Losses. For the avoidance of doubt, Section 4(k) hereof and this Section 9 shall survive the Closing Date, and shall survive until 90 days following the expiration of the applicable statute of limitations.

 

10.                               Further Assurances.  Subject to the terms and conditions of this Agreement, each party will use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under applicable laws and regulations to consummate the transactions contemplated by this Agreement.

 

11.                               Legal and Equitable Remedies.  Each party has the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief without prejudice to any other rights or remedies such party may have at law or in equity for breach of this Agreement.

 

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12.                               Costs.  Each party will pay its own legal and other fees in connection with the negotiation and preparation of this Agreement; provided that if any action is brought to enforce the terms of this Agreement, the prevailing party will be entitled to recover its reasonable and documented attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing party may be entitled.

 

13.                               Entire Agreement.  This Agreement constitutes the entire agreement between the Company and the Sellers with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter. The Sellers acknowledge that neither the Company nor its agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing the Sellers to execute this Agreement, and the Sellers acknowledge that it has executed this Agreement in reliance only upon such promises as are contained herein. The Company acknowledges that none of the Sellers nor their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing the Company to execute this Agreement, and the Company acknowledges that it has executed this Agreement in reliance only upon such promises as are contained herein.

 

14.                               Modification.  It is expressly agreed that this Agreement may not be altered, amended, modified or otherwise changed in any respect except by another written agreement that specifically refers to this Agreement, executed by each of the parties to this Agreement.

 

15.                               Severability.  If any provision of this Agreement, or any part of any such provision, is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction and (c) such invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this Agreement and is separable from every other part of such provision.

 

16.                               Notices.  All notices, requests and other communications to any party required or permitted to be given hereunder shall be in writing and shall be delivered in person, mailed by certified or registered mail, return receipt requested, or sent by facsimile transmission, if to the Company:

 

Arch Coal, Inc.

One CityPlace Drive

Suite 300,

St. Louis, Missouri 63141

 

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Attention: Robert Jones

Fax: (314) 994-2736

 

with a copy to:

 

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Attention:  Charles E. Carpenter, Keith L. Halverstam

Fax: (212) 751-4864

 

and if to any Seller, at the address for such Seller listed on the signature pages below or otherwise provided to the Company. Each party hereto shall be entitled to specify a different address or facsimile number for the receipt of subsequent notices or other communications by giving written notice thereof to the other party in accordance with this Section 15.

 

17.                               Governing Law.  This Agreement will be governed by the laws of the State of New York without regard to conflicts of laws principles.

 

18.                               Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

 

19.                               Headings.  The headings contained in this Agreement are included for purposes of convenience only, and do not affect the meaning or interpretation of this Agreement.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	
COMPANY:
    	
 
    
	
 
    	
 
    
	
ARCH COAL, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Robert G. Jones
    	
 
    
	
Name:
    	
Robert G. Jones
    	
 
    
	
Title:
    	
Senior Vice President — Law, General   Counsel and Secretary
    	
 
    

 

[Signature Page to Stock Repurchase Agreement]

 

 

	
SELLERS:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MONARCH ALTERNATIVE SOLUTIONS MASTER FUND LTD
    	
 
    
	
MONARCH CAPITAL MASTER PARTNERS III LP
    	
 
    
	
MCP HOLDINGS MASTER LP
    	
 
    
	
MONARCH DEBT RECOVERY MASTER FUND LTD
    	
 
    
	
 
    	
 
    
	
By MONARCH ALTERNATIVE CAPITAL LP,
    	
 
    
	
as Investment Manager
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Christopher Santana
    	
 
    	
 
    
	
Name:
    	
Christopher Santana
    	
 
    	
 
    
	
Title:
    	
Managing Principal
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Address For Notices:
    	
 
    
	
 
    	
 
    
	
Fund Operations
    	
 
    
	
Monarch Alternative Capital LP
    	
 
    
	
535 Madison Avenue
    	
 
    
	
26th Floor
    	
 
    
	
New York, NY 10022
    	
 
    

 

[Signature Page to Stock Repurchase Agreement]

 

 

SCHEDULE A

 

	
Seller
    	
 
    	
Number of Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Monarch Debt   Recovery Master Fund Ltd
    	
 
    	
246,410
    	
 
    
	
Monarch Capital   Master Partners III LP
    	
 
    	
75,818
    	
 
    
	
MCP Holdings   Master LP
    	
 
    	
56,864
    	
 
    
	
Monarch   Alternative Solutions Master Fund Ltd
    	
 
    	
120,908EX-4.3

 Exhibit 4.3 

Officers’ Certificate 

Pursuant to Sections 102, 201, 301 and 303 of the Indenture 

Dated: December 11, 2017 
 The
undersigned, Tyler H. Rose, Executive Vice President, Chief Financial Officer and Secretary, and Michelle Ngo, Senior Vice President and Treasurer, of Kilroy Realty Corporation, a Maryland corporation (“KRC”), the guarantor (the
“Guarantor”) of the Securities referred to below and the sole general partner (the “General Partner”) of Kilroy Realty, L.P., a Delaware limited partnership (the “Company”), hereby certify as
follows: 
 The undersigned, having read the appropriate provisions of the Indenture, dated as of March 1, 2011 (the
“Base Indenture”), among the Company, the Guarantor and U.S. Bank National Association, as trustee (the “Trustee”), as amended and supplemented by the Supplemental Indenture, dated as of July 5, 2011
(the “Supplemental Indenture”), among the Company, the Guarantor and the Trustee (the Base Indenture, as so amended and supplemented, is called the “Indenture”), including Sections 201, 301 and 303 thereof
and the definitions in such Indenture relating thereto, and certain other corporate and partnership documents and records, and having made such examination and investigation as, in the opinion of the undersigned, each considers necessary to enable
the undersigned to express an informed opinion as to whether (a) the conditions set forth in the Indenture relating to the establishment of the title and terms of the Company’s 3.450% Senior Notes due 2024 (the
“Securities”), the form of certificate evidencing the Securities and the form and terms of guarantees (the “Guarantees”) of the Guarantor to be endorsed on the certificates evidencing the Securities, have been
satisfied, and (b) the conditions in the Indenture relating to the issuance, authentication and delivery of the Securities have been satisfied, each hereby certify that: 
  

	 	(i)	 the title and terms of the Securities and the terms of the Guarantees to be endorsed on the certificates
evidencing the Securities were established by the undersigned pursuant to authority delegated to them by resolutions duly adopted by the Board of Directors of KRC, on its own behalf and, in its capacity as General Partner, on behalf of the Company,
on December 13, 2016, February 28, 2017 and May 23, 2017, and the unanimous written consent of the Pricing Committee of the Board of Directors of KRC, on its own behalf and, in its capacity as General Partner, on behalf of the
Company, dated as of November 27, 2017 (collectively, the “Resolutions”) and such terms are set forth in Annex I hereto; 

  

	 	(ii)	 the form of certificate evidencing the Securities and the form of Guarantee to be endorsed on the certificates
evidencing the Securities were established by the undersigned pursuant to authority delegated to them by the Resolutions and shall be in substantially the forms attached as Annex II hereto (it being understood that, in the event that
Securities are ever issued in definitive certificated form, the legends appearing on the first page of such form of Securities may be removed); 

  

	 	(iii)	 a true, complete and correct copy of the Resolutions, which were duly adopted by the Board of Directors of KRC
and the Pricing Committee of such Board of Directors (as applicable), in each case on behalf of KRC and, in KRC’s capacity as General Partner, on behalf of the Company and are in full force and effect in the form adopted on the date hereof, are
attached as Annex III hereto and are also attached as an exhibit to the Certificate of the Secretary of the Company of even date herewith; 

  

	 	(iv)	 the form, title and terms of the Securities and form and terms of Guarantees endorsed on the certificates
evidencing the Securities have been established 

	 	 pursuant to and in accordance with Sections 201 and 301 of the Indenture and comply with the Indenture and, in
the opinion of the undersigned, all conditions provided for in the Indenture (including, without limitation, those set forth in Sections 201, 301 and 303 of the Indenture) relating to the establishment of the title and terms of the Securities and
the terms of such Guarantees, the form of certificate evidencing the Securities and the form of such Guarantees and the issuance, execution, authentication and delivery of the Securities and such Guarantees have been complied with and satisfied; and

  

	 	(v)	 to the best knowledge of the undersigned, no Event of Default (as defined in the Indenture) has occurred and
is continuing with respect to the Securities. 

 This certificate shall constitute an Officers’
Certificate (as defined in the Indenture) of the Company and the Guarantor. 
 (SIGNATURE PAGE FOLLOWS) 

 IN WITNESS WHEREOF, we have hereunto set our hands as of the date first written
above. 
  

	
	 /s/ Tyler H. Rose

	Tyler H. Rose
	Executive Vice President, Chief Financial Officer and Secretary
	
	 /s/ Michelle Ngo

	Michelle Ngo
	Senior Vice President and Treasurer

  
 (Officers’
Certificate Pursuant to Sections 102, 201, 301 and 303 of the Indenture) 

 ANNEX I 

Capitalized terms used in this Annex I and not otherwise defined herein have the same definitions as in the Indenture
referred to in the Officers’ Certificate of which this Annex I constitutes a part. 
  

	(1)	 The Securities of the series established hereby shall be known and designated as the “3.450%
Senior Notes due 2024.” 

  

	(2)	 The aggregate principal amount of the Securities of such series which may be authenticated and delivered under
the Indenture is limited to $425,000,000, except for Securities of such series authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the same series pursuant to Sections 304, 305, 306 or
1107 of the Indenture. However, such series may be re-opened by the Company for the issuance of additional Securities of such series, from time to time; provided that such additional Securities have the same
terms and provisions as the Securities of such series issued on the date (the “Original Issue Date”) of the Officers’ Certificate of which this Annex I constitutes a part (except for any difference in issue date,
issue price, date from which Interest will begin to accrue, Interest accrued prior to the issue date and first Interest Payment Date (as defined below)), and carry the same right to receive accrued and unpaid Interest, as the Securities of such
series theretofore issued; provided, however, that, notwithstanding the foregoing, such series may not be reopened if the Company has effected legal defeasance or covenant defeasance with respect to the Securities of such series pursuant to
Section 402 of the Indenture or has effected satisfaction and discharge with respect to the Securities of such series pursuant to Section 401 of the Indenture. All of the Securities of such series, including any additional Securities which
may be issued upon a re-opening of such series, shall constitute a single series of Securities under the Indenture. 

  

	(3)	 The Securities of such series are to be issuable only as Registered Securities without coupons and may, but
need not, bear a corporate seal. The Securities of such series shall initially be issued in book-entry form and represented by one or more permanent Global Securities of such series, the initial depositary (the “Depositary”) for the
Global Securities of such series shall be The Depository Trust Company and the depositary arrangements shall be those employed by whoever shall be the Depositary with respect to the Global Securities of such series from time to time. Notwithstanding
the foregoing, certificated Securities of such series in definitive form may be issued in exchange for Global Securities of such series under the circumstances contemplated by Section 305 of the Indenture. Except as provided in Section 305
of the Indenture, beneficial owners of interests in a Global Security shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not
be considered Holders of such Global Security. 

  

	(4)	 The Securities of such series shall be sold by the Company to the several underwriters named in the
Underwriting Agreement, dated November 27, 2017, for whom J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc. are acting as representatives, at a price equal to 99.245% of the principal amount thereof and the initial price to public
of the Securities of such series shall be 99.870% of the principal amount thereof plus accrued Interest from December 11, 2017 if settlement occurs after that date, and underwriting discounts and commissions shall be 0.625% of the principal
amount of such Securities. 

  

	(5)	 The final maturity date of the Securities of such series on which the principal thereof is due and payable
shall be December 15, 2024. 

  

	(6)	 The principal of the Securities of such series shall bear Interest at the rate of 3.450% per annum from
December 11, 2017 or from the most recent date to which Interest has been paid or duly 

  
 I-1 

	 	 
provided for, payable semiannually in arrears on June 15 and December 15 (each, an “Interest Payment Date”) of each year, commencing June 15, 2018,
to the Persons in whose names such Securities (or one or more Predecessor Securities) are registered at the close of business on the June 1 and December 1, respectively, immediately prior to such Interest Payment Dates (each, a
“Regular Record Date”) regardless of whether such Regular Record Date is a Business Day. Interest on the Securities of such series will be computed on the basis of a 360-day year
of twelve 30-day months. If any principal of, or premium, if any, or Interest on, any of the Securities of such series is not paid when due, then such overdue principal and, to the extent permitted by law,
such overdue premium or Interest, as the case may be, shall bear interest until paid or until such payment is duly provided for at the rate of 3.450% per annum. 

 

	(7)	 Each of the Borough of Manhattan, The City of New York and The City of Los Angeles, California is hereby
designated as a Place of Payment for the Securities of such series. The place where the principal of and premium, if any, and Interest (including the Redemption Price upon redemption pursuant to Article Eleven of the Indenture) on the Securities of
such series shall be payable, where Securities of such series may be surrendered for the registration of transfer or exchange, and where notices or demands to or upon the Company or the Guarantor in respect of the Securities of such series and the
Indenture may be served shall be the office or agency maintained by the Company for such purpose in the Borough of Manhattan, The City of New York and in The City of Los Angeles, California, which (i) with respect to the Borough of Manhattan,
The City of New York, shall initially be an office of the Trustee in the Borough of Manhattan, The City of New York, which on the date hereof is located at U.S. Bank National Association, 100 Wall Street, Suite 1600, New York, New York 10005; and
(ii) with respect to The City of Los Angeles, California, shall initially be an office of the Trustee in The City of Los Angeles, California, which on the date hereof is located at U.S. Bank National Association, 633 West Fifth Street, 24th
Floor, Los Angeles, California 90071. 

  

	(8)	 The following redemption provisions and definitions are hereby added to the Indenture for the benefit of the
Securities of such series and the Holders of the Securities of such series and are hereby incorporated by reference in and made part of the Indenture for the benefit of the Securities of such series and the Holders of the Securities of such series
as if set forth in full therein: 

 The Securities of such series are redeemable at the
option of the Company, at any time or from time to time prior to September 15, 2024 (the “Par Call Date”), either in whole or in part, at a Redemption Price equal to the greater of (i) 100% of the principal amount
of the Securities of such series to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal of and Interest (exclusive of Interest accrued to the applicable Redemption Date) on the Securities of such
series to be redeemed assuming that such Securities matured, and that Interest on such Securities was payable, on the Par Call Date discounted to such Redemption Date on a semiannual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points, plus in each case accrued and unpaid Interest on the principal amount of the Securities of such series being redeemed to such
Redemption Date. 
 On and after the Par Call Date, the Securities of such series are redeemable at the
option of the Company, at any time or from time to time, either in whole or in part, at a Redemption Price equal to 100% of the principal amount of the Securities of such series to be redeemed, plus accrued and unpaid Interest on the principal
amount of the Securities of such series being redeemed to the applicable Redemption Date. 
 Notwithstanding
the foregoing, installments of Interest that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date with respect to the Securities of 

  
 I-2 

 such series will be payable to the Persons who were the Holders of the Securities
of such series (or one or more Predecessor Securities), registered as such at the close of business on the relevant Regular Record Dates according to their terms and the provisions of the Indenture. Written notice of redemption must be given to
Holders of the Securities of such series not less than 15 nor more than 60 days prior to the applicable Redemption Date. 

If less than all of the Securities of such series are to be redeemed, the particular Securities of such series
to be redeemed shall be selected in the manner provided in Section 1103 of the Indenture in minimum principal amounts of $2,000 and integral multiples of $1,000 in principal amount in excess thereof; provided that, in the case of any Security
of such series redeemed in part, the unredeemed portion thereof shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. 

Notwithstanding the foregoing, the Company shall not redeem the Securities of such series on any date if the
principal amount of the Securities of such series has been accelerated, and such acceleration has not been rescinded or cured on or prior to the applicable Redemption Date as provided in the Indenture. 

The redemption of the Securities of such series shall otherwise be made as provided in the Indenture, including
Article Eleven thereof. 
 Certain Definitions 

“Treasury Rate” means, with respect to any Redemption Date for the Securities of such series, the rate
per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated by the Company using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding the applicable Redemption Date. As used in the immediately preceding sentence and in the definition of “Reference
Treasury Dealer Quotations” below, the term “Business Day” means any day (other than a Saturday or Sunday) that is not a day on which banking institutions in The City of New York are
authorized or required by law, regulation or executive order to close. 
 “Comparable Treasury
Issue” means, with respect to any Redemption Date for the Securities of such series, the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term (the
“Remaining Life”) of the Securities of such series to be redeemed (assuming for this purpose that such Securities matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Securities. 

“Comparable Treasury Price” means, with respect to any Redemption Date for the Securities of
such series, (i) if four or five Reference Treasury Dealer Quotations are obtained, the average (as calculated by the Company) of the remaining Reference Treasury Dealer Quotations for such Redemption Date after excluding the highest and lowest
such Reference Treasury Dealer Quotations from the four or five, as the case maybe, obtained, (ii) if fewer than four but more than one such Reference Treasury Dealer Quotations are obtained, the average (as calculated by the Company) of all
such quotations, or (iii) if only one such Reference Treasury Dealer Quotation is obtained, such Reference Treasury Dealer Quotation. 

“Independent Investment Banker” means, with respect to any Redemption Date for the Securities
of such series, J.P. Morgan Securities LLC and its successors, Barclays Capital Inc. and its successors, Merrill Lynch, Pierce, Fenner & Smith Incorporated and its successors, U.S. Bancorp Investments, Inc. and its successors or Wells Fargo
Securities, LLC and its successors (whichever shall be appointed by the 

  
 I-3 

 Company in respect of such Redemption Date) or, if all such firms or the respective successors,
if any, to such firms, as the case may be, are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company. 

“Reference Treasury Dealers” means, with respect to any Redemption Date for the Securities of
such series, each of (i) J.P. Morgan Securities LLC, Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC (or their respective affiliates which are Primary Treasury Dealers (as
defined below)) and their respective successors; provided, however, that if any such firm (or, if applicable, any such affiliate) or any such successor, as the case may be, shall cease to be a primary U.S. Government securities dealer in the United
States (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer; and (ii) a Primary Treasury Dealer selected by U.S. Bancorp Investments, Inc., or its successor. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date with respect to the Securities of such series, the average (as calculated by the Company) of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York time, on the third Business Day preceding such Redemption Date. 
  

	(9)	 The Securities of such series shall not be repayable or redeemable at the option of the Holders prior to the
final maturity date of the principal thereof (except as provided in Article Five of the Indenture) and shall not be subject to a sinking fund or analogous provision. 

 

	(10)	 The Securities of such series shall be issued in denominations of $2,000 and integral multiples of $1,000 in
excess thereof. 

  

	(11)	 The Trustee shall be the initial trustee, Security Registrar, transfer agent and Paying Agent for the
Securities of such series. 

  

	(12)	 The entire outstanding principal amount of the Securities of such series shall be payable upon acceleration of
the maturity of the Securities of such series pursuant to Section 501 of the Indenture. 

  

	(13)	 Payment of the principal of, and premium, if any, and Interest on (including the Redemption Price payable upon
redemption pursuant to Article Eleven of the Indenture) the Securities of such series shall be made in Dollars and the Securities of such series shall be denominated in Dollars. 

 

	(14)	 Other than amounts payable upon redemption of the Securities of such series at the option of the Company prior
to the Par Call Date in accordance with Section (8) above, the amount of payments of principal of and premium, if any, and Interest on the Securities of such series shall not be determined with reference to an index, formula or other similar
method. 

  

	(15)	 Neither the Company nor the Holders of the Securities of such series shall have any right to elect the
currency in which payments of the principal of and premium, if any, and Interest on (including the Redemption Price payable upon redemption pursuant to Article Eleven of the Indenture) the Securities of the series are made. 

 

	(16)	 In addition to the covenants set forth in the Indenture, the following covenants set forth below under the
caption “Additional Covenants” (the “Additional Covenants”) shall be and hereby are added to the Indenture for the benefit of the Securities of such series and the Holders of the Securities of such
series, and the Additional Covenants, together with the defined terms (the “Additional Definitions”) set forth in Section (25) below under the caption “Additional Definitions”, are hereby
incorporated by reference in and made part of the Indenture for the benefit of the Securities 

  
 I-4 

	 	 of such series and the Holders of the Securities of such series as if set forth in full therein; provided that
the Additional Covenants and the Additional Definitions set forth below shall only be applicable with respect to the Securities of such series and the Additional Definitions and the Additional Covenants set forth below shall only be effective for so
long as any of the Securities of such series is Outstanding: 

 Additional Covenants 

 

	 	(a)	 Aggregate Debt Test. 

 

	 	(i)	 The Company will not, and will not permit any of its Subsidiaries to, incur any Debt (including without
limitation Acquired Debt) if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt on a pro forma basis, the aggregate principal amount of all outstanding Debt of the Company and its
Subsidiaries (determined on a consolidated basis in accordance with United States generally accepted accounting principles) is greater than 60% of the sum of the following (without duplication): 

 

	 	(A)	 the Total Assets of the Company and its Subsidiaries as of the last day of the then most recently ended fiscal
quarter; and 

  

	 	(B)	 the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate
amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any of its Subsidiaries since the end of such fiscal
quarter, including the proceeds obtained from the incurrence of such additional Debt. 

  

	 	(ii)	 For purposes of this covenant, Debt will be deemed to be incurred by the Company or any of its Subsidiaries
whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof. 

  

	 	(b)	 Debt Service Test. 

  

	 	(i)	 The Company will not, and will not permit any of its Subsidiaries to, incur any Debt (including without
limitation Acquired Debt) if the ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters most recently ended prior to the date on which such additional
Debt is to be incurred shall have been less than 1.5:1 on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt (determined on a consolidated basis in accordance with United States
generally accepted accounting principles), and calculated on the following assumptions: 

  

	 	(A)	 such Debt and any other Debt (including without limitation Acquired Debt) incurred by the Company or any of
its Subsidiaries since the first day of such four-quarter period had been incurred, and the application of the proceeds from such Debt (including to repay or retire other Debt) had occurred, on the first day of such period; 

  
 I-5 

	 	(B)	 the repayment or retirement of any other Debt of the Company or any of its Subsidiaries since the first day of
such four-quarter period had occurred on the first day of such period (except that, in making this computation, the amount of Debt under any revolving credit facility, line of credit or similar facility will be computed based upon the average daily
balance of such Debt during such period); and 

  

	 	(C)	 in the case of any acquisition or disposition by the Company or any of its Subsidiaries of any asset or group
of assets with a fair market value in excess of $1.0 million since the first day of such four-quarter period, whether by merger, stock purchase or sale or asset purchase or sale or otherwise, such acquisition or disposition had occurred as of
the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation. 

  

	 	(ii)	 If the Debt giving rise to the need to make the calculation described in this covenant or any other Debt
incurred after the first day of the relevant four- quarter period bears interest at a floating rate, then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt will be computed on a pro forma basis by applying
the average daily rate which would have been in effect during the entire four-quarter period to the greater of the amount of such Debt outstanding at the end of such period or the average amount of such Debt outstanding during such period. For
purposes of this covenant, Debt will be deemed to be incurred by the Company or any of its Subsidiaries whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof. 

 

	 	(c)	 Secured Debt Test. 

  

	 	(i)	 The Company will not, and will not permit any of its Subsidiaries to, incur any Debt (including without
limitation Acquired Debt) secured by any Lien on any property or assets of the Company or any of its Subsidiaries, whether owned on the Original Issue Date or subsequently acquired, if, immediately after giving effect to the incurrence of such Debt
and the application of the proceeds from such Debt on a pro forma basis, the aggregate principal amount (determined on a consolidated basis in accordance with United States generally accepted accounting principles) of all outstanding Debt of the
Company and its Subsidiaries which is secured by a Lien on any property or assets of the Company or any of its Subsidiaries is greater than 40% of the sum of (without duplication): 

 

	 	(A)	 the Total Assets of the Company and its Subsidiaries as of the last day of the then most recently ended fiscal
quarter; and 

  

	 	(B)	 the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate
amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any of its Subsidiaries since the end of such fiscal
quarter, including the proceeds obtained from the incurrence of such additional Debt. 

  
 I-6 

	 	(ii)	 For purposes of this covenant, Debt will be deemed to be incurred by the Company or any of its Subsidiaries
whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof. 

  

	 	(d)	 Maintenance of Total Unencumbered Assets. The Company will not have at any time Total Unencumbered Assets of
less than 150% of the aggregate principal amount of all outstanding Unsecured Debt of the Company and its Subsidiaries determined on a consolidated basis in accordance with United States generally accepted accounting principles.

  

	(17)	 Section 402 of the Indenture shall apply to the Securities of such series, provided that (i) the
Company may effect legal defeasance (as defined in the Indenture) and covenant defeasance (as defined in the Indenture) pursuant to Section 402 only with respect to all (and not less than all) of the Outstanding Securities of such series and
(ii) in addition to the covenants specifically referred to by section number in Section 402(3) of the Indenture, the Additional Covenants shall also be subject to covenant defeasance pursuant to Section 402(3) of the Indenture;
provided that, anything herein to the contrary notwithstanding, the only portions of Section 1004 of the Indenture that shall be subject to covenant defeasance are the portions expressly identified in Section 402(3) of the Indenture as
being subject to covenant defeasance. 

  

	(18)	 The Company shall not be required to pay Additional Amounts with respect to the Securities of such series as
contemplated by Section 1009 of the Indenture. 

  

	(19)	 The Securities of such series shall not be convertible or exchangeable into the General Partner’s Common
Stock or Preferred Stock. 

  

	(20)	 The obligations of the Company under the Securities of such series and the Indenture shall be guaranteed by
the Guarantor as provided in Article Sixteen of the Indenture and Guarantees endorsed on the certificates evidencing such Securities. 

  

	(21)	 The Securities of such series will be senior unsecured obligations of the Company and the Guarantees of the
Securities of such series set forth in Article Sixteen of the Indenture and endorsed on the certificates evidencing such Securities will be senior unsecured obligations of the Guarantor. 

 

	(22)	 The provisions of Section 1010 of the Indenture shall be applicable with respect to any term, provision
or condition set forth in the Additional Covenants, in addition to any term, provision or condition set forth in Sections 1004 through 1007, inclusive, of the Indenture. 

 

	(23)	 The Securities of such series and the Guarantees endorsed on certificates evidencing the Securities of such
series shall have such other terms and provisions as are set forth in the form of certificate evidencing the Securities of such series and form of related Guarantee endorsed thereon attached as Annex II to the Officers’ Certificate of
which this Annex I is a part, all of which terms and provisions are incorporated by reference in and made a part of this Annex I and the Indenture for the benefit of the Securities of such series and the Holders of the Securities of
such series as if set forth in full herein and therein. 

  

	(24)	 As used in the Indenture with respect to the Securities of such series, in the certificates evidencing the
Securities of such series and the Guarantees endorsed on the certificates evidencing the Securities of such series, all references to “premium” on the Securities of such series shall mean any amounts (other than accrued Interest)
payable upon the redemption of any Securities of such series in excess of 100% of the principal amount of such Securities. 

  
 I-7 

	(25)	 In addition to the definitions set forth in Article One of the Indenture, the terms of the Securities of such
series shall include the additional definitions set forth below under the caption “Additional Definitions” and, in the event of a conflict between such additional definitions and the Indenture, such additional definitions
will apply: 

 Additional Definitions 

“Acquired Debt” means Debt of a Person: 

 

	 	(a)	 existing at the time such Person is merged or consolidated with or into the Company or any of its Subsidiaries
or becomes a Subsidiary of the Company; or 

  

	 	(b)	 assumed by the Company or any of its Subsidiaries in connection with the acquisition of assets from such
Person. 

 Acquired Debt shall be deemed to be incurred on the date the acquired Person is merged or consolidated with or
into the Company or any of its Subsidiaries or becomes a Subsidiary of the Company or the date of the related acquisition, as the case may be. 

“Annual Debt Service Charge” means, for any period, the interest expense of the Company
and its Subsidiaries for such period, determined on a consolidated basis in accordance with United States generally accepted accounting principles, including, without duplication: 

 

	 	(a)	 all amortization of debt discount and premium; 

 

	 	(b)	 all accrued interest; 

 

	 	(c)	 all capitalized interest; and 

 

	 	(d)	 the interest component of capitalized lease obligations. 

“Consolidated Income Available for Debt Service” for any period means
Consolidated Net Income of the Company and its Subsidiaries for such period, plus amounts which have been deducted and minus amounts which have been added for, without duplication: 

 

	 	(a)	 interest expense on Debt; 

 

	 	(b)	 provision for taxes based on income; 

 

	 	(c)	 amortization of debt discount, premium and deferred financing costs; 

 

	 	(d)	 provisions for gains and losses on sales or other dispositions of properties and other investments;

  

	 	(e)	 property depreciation and amortization; 

 

	 	(f)	 the effect of any non-cash items; and 

 

	 	(g)	 amortization of deferred charges, 

all determined on a consolidated basis in accordance with United States generally accepted accounting principles. 

  
 I-8 

 “Consolidated Net Income” for any period means the
amount of net income (or loss) of the Company and its Subsidiaries for such period, excluding, without duplication: 
  

	 	(a)	 extraordinary items; and 

 

	 	(b)	 the portion of net income (but not losses) of the Company and its Subsidiaries allocable to minority interests
in unconsolidated Persons to the extent that cash dividends or distributions have not actually been received by the Company or one of its Subsidiaries, 

all determined on a consolidated basis in accordance with United States generally accepted accounting principles. 

“Debt” means, with respect to any Person, any indebtedness of such Person, whether or not contingent, in
respect of: 
  

	 	(a)	 borrowed money or evidenced by bonds, notes, debentures or similar instruments; 

 

	 	(b)	 indebtedness secured by any Lien on any property or asset owned by such Person, but only to the extent of the
lesser of (a) the amount of indebtedness so secured and (b) the fair market value (determined in good faith by the Board of Directors of such Person or, in the case of the Company or a Subsidiary of the Company, by the General
Partner’s Board of Directors) of the property subject to such Lien; 

  

	 	(c)	 reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued
or amounts representing the balance deferred and unpaid of the purchase price of any property except any such balance that constitutes an accrued expense or trade payable; or 

 

	 	(d)	 any lease of property by such Person as lessee which is required to be reflected on such Person’s balance
sheet as a capitalized lease in accordance with United States generally accepted accounting principles, 

 and also
includes, to the extent not otherwise included, any obligation of such Person to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), Debt of the types referred to
above of another Person (it being understood that Debt shall be deemed to be incurred by such Person whenever such Person shall create, assume, guarantee or otherwise become liable in respect thereof). 

“Original Issue Date” shall have the meaning set forth in Section (2) of this Annex I.

 “Total Assets” means the sum of, without duplication: 

 

	 	(a)	 Undepreciated Real Estate Assets; and 

 

	 	(b)	 all other assets (excluding accounts receivable and intangibles) of the Company and its Subsidiaries,

 all determined on a consolidated basis in accordance with United States generally accepted accounting principles. 

“Total Unencumbered Assets” means the sum of, without duplication: 

 

	 	(a)	 those Undepreciated Real Estate Assets which are not subject to a Lien securing Debt; and

  
 I-9 

	 	(b)	 all other assets (excluding accounts receivable and intangibles) of the Company and its Subsidiaries not
subject to a Lien securing Debt, 

 all determined on a consolidated basis in accordance with United States generally
accepted accounting principles; provided, however, that, in determining Total Unencumbered Assets as a percentage of outstanding Unsecured Debt for purposes of the Additional Covenant entitled “Maintenance of Total
Unencumbered Assets” as set forth in Section (16)(d) of this Annex I, all investments in unconsolidated limited partnerships, unconsolidated limited liability companies and other unconsolidated entities shall be excluded
from Total Unencumbered Assets. 
 “Undepreciated Real Estate Assets” means, as of any
date, the cost (original cost plus capital improvements) of real estate assets of the Company and its Subsidiaries on such date, before depreciation and amortization, all determined on a consolidated basis in accordance with United States generally
accepted accounting principles. 
 “Unsecured Debt” means Debt of the Company or any of its
Subsidiaries which is not secured by a Lien on any property or assets of the Company or any of its Subsidiaries. 

  
 I-10 

 ANNEX II 

Form of 3.450% Senior Note due 2024 

and Form of Guarantee Endorsed Thereon 

 [Include only for Global Securities -
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY,” WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THIS SECURITY) TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 CUSIP: 49427RAM4 

ISIN: US49427RAM43 
 No. R
-                     
 KILROY
REALTY, L.P. 
 3.450% SENIOR NOTES DUE 2024 

Kilroy Realty, L.P., a Delaware limited partnership (herein called the “Company,” which term includes any
successor under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to                     , or its
registered assigns, the principal sum of [        ] DOLLARS ($[            ]) on December 15, 2024 at the office or agency of the Company
maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay Interest,
semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2018, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 3.450%, from the June 15 or
December 15, as the case may be, next preceding the date of this Note (as defined on the reverse hereof) to which Interest has been paid or duly provided for, unless no Interest has been paid or duly provided for on the Notes, in which case
from December 11, 2017, until payment of said principal sum has been made or duly provided for. Except as otherwise provided in or permitted pursuant to Section 307 of the Indenture (as defined on the reverse hereof), the principal of and
premium, if any, and Interest on the Notes shall be paid at the office or agency designated by the Company for such purpose. 

The Company promises to pay Interest on overdue principal and (to the extent that payment of such Interest is permitted by
applicable law) overdue premium, if any, and Interest at the rate of 3.450% per annum. 
 Reference is made to the further
provisions of this Note set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have
been signed manually by the Trustee (as defined on the reverse hereof) or a duly authorized Authenticating Agent under the Indenture. 

(Signature Page Follows) 

  
 1 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed. 

 

							
	 Dated:
                    
	 		 	 KILROY REALTY, L.P.

				
		 		 	 By:
	 	 Kilroy Realty Corporation, as its sole general partner

				
		 		 	 By:
	 	  

		 		 		 	 Name:

		 		 		 	 Title:

				
		 		 	 By:
	 	  

		 		 		 	 Name:

		 		 		 	 Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the 3.450% Senior Notes due 2024 referred to in the within-mentioned Indenture. 

 

							
	 Dated:
                    
	 		 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
				
		 		 	 By:
	 	  

		 		 		 	     Authorized Signatory

 [FORM OF REVERSE SIDE OF NOTE] 

KILROY REALTY, L.P. 

3.450% SENIOR NOTES DUE 2024 

This Note is one of a duly authorized issue of Securities of the Company, designated as its 3.450% Senior Notes due 2024
(herein called the “Notes”), issued under and pursuant to an Indenture, dated as of March 1, 2011 (the “Base Indenture”), among the Company, Kilroy Realty Corporation, a Maryland corporation (the
“Guarantor”, which term includes any successor under the Indenture hereinafter referred to), and U.S. Bank National Association, as trustee (herein called the “Trustee,” which term includes any successor
thereto under the Indenture), as supplemented by the Supplemental Indenture, dated as of July 5, 2011 (the “First Supplemental Indenture”; the Base Indenture, as amended and supplemented by the First Supplemental
Indenture and as the same may be further amended and supplemented from time to time, is hereinafter called the “Indenture”), among the Company, the Guarantor and the Trustee and the Officers’ Certificate of the Company and the
Guarantor dated December 11, 2017, delivered pursuant to Sections 102, 201, 301 and 303 of the Indenture (the “Officers’ Certificate”), to which reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the Company, the Guarantor and the Holders of the Notes. Terms (whether or not capitalized) that are defined in the Indenture and used but not otherwise defined in this Note
shall have the respective meanings ascribed thereto in the Indenture. 
 If an Event of Default with respect to the Notes
occurs and is continuing, then the principal of and accrued and unpaid Interest on all of the Notes may be declared or, in the case of certain Events of Default, shall automatically become immediately due and payable in the manner and with the
effect provided in the Indenture. 
 The Indenture contains provisions permitting the Company, the Guarantor and the
Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or the Notes or modifying in any manner the rights of the Holders of the Notes, subject to exceptions set forth in Section 902 of the Indenture. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of the Notes then Outstanding, on behalf of the Holders of all of the Notes, to waive compliance by the Company or the Guarantor with certain provisions of the Indenture
and certain past defaults or Events of Default with respect to the Notes and their consequences. 
 No reference herein to
the Indenture and no provision of this Note, the Guarantee endorsed on this Note or the Indenture shall alter or impair, as among the Company and the Holder of this Note, the obligation of the Company, which is absolute and unconditional, to pay the
principal of and premium, if any, and Interest on this Note at the place, at the respective times, at the rate, in the respective amounts and in the coin or currency herein and in the Indenture prescribed. 

Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 
 The Notes are issuable in fully registered form, without coupons, in
minimum denominations of $2,000 principal amount and in integral multiples of $1,000 principal amount in excess thereof. As provided in the Indenture and subject to certain limitations set forth therein, the Notes may be surrendered for registration
of transfer or for exchange for a like aggregate principal amount of Notes of authorized denominations as requested by the Holders surrendering the same. No service charge shall be made for any registration of transfer or exchange of Notes, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith, subject to exceptions set forth in the Indenture. 

  
 1 

 The Company shall have the right to redeem the Notes, in whole at any time and
from time to time in part, at the Redemption Price and on the terms and conditions set forth in the Indenture and the Officers’ Certificate. 

Written notice of redemption must be given to Holders of the Notes not less than 15 nor more than 60 days prior to the
applicable Redemption Date. 
 The Notes are not subject to redemption through the operation of any sinking fund. 

No recourse under or upon any obligation, covenant or agreement contained in the Indenture or the Notes, or because of any
indebtedness evidenced thereby, shall be had against any past, present or future stockholder, employee, officer or director, as such, of the Company, the General Partner, the Guarantor or of any successor, either directly or through the Company, the
General Partner, the Guarantor or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and
released by the acceptance of the Notes by the Holders and as part of the consideration for the issue of the Notes. 
 This
Note shall be governed by, and construed in accordance with, the laws of the State of New York. 

  
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 ABBREVIATIONS 

The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were
written out in full according to applicable laws or regulations. 
  

			
	 TEN–COM
	  	 as tenants in common

		
	 TEN–ENT
	  	 as tenant by the entireties

		
	UNIF GIFT MIN ACT	  	 Uniform Gifts to Minors Act

		
	 Cust
	  	 Custodian

		
	 JT–TEN
	  	 as joint tenants with right of survivorship and not under Uniform Gifts to Minors Act

		
		  	
                   
                                         
                                         
          

		  	 (State)

 Additional abbreviations may also be used though not in the above list. 

  
 3 

 GUARANTEE 

Kilroy Realty Corporation, a Maryland Corporation (hereinafter referred to as the “Guarantor,” which term
includes any successor under the Indenture referred to below), hereby irrevocably and unconditionally guarantees on a senior basis on the terms set forth in the Indenture, the Guarantee Obligations, which include (i) the due and punctual
payment of the principal of and premium, if any, and Interest (including the Redemption Price upon redemption pursuant to Article Eleven of the Indenture) on the 3.450% Senior Notes due 2024 (the “Notes”) of Kilroy Realty, L.P., a
Delaware limited partnership (the “Company,” which term includes any successor thereto under the Indenture), whether at the Stated Maturity of the Notes, upon acceleration, upon redemption or otherwise, the due and punctual payment
of Interest on any overdue principal and (to the extent permitted by law) any overdue premium, if any, and Interest on the Notes, and the due and punctual performance of all other obligations of the Company to the Holders of the Notes or the Trustee
all in accordance with the terms set forth in Article Sixteen of the Indenture, and (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that the same shall be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at the Stated Maturity of the Notes, by acceleration, call for redemption or otherwise. 

This Guarantee has been issued under and pursuant to an Indenture, dated as of March 1, 2011 (the “Base
Indenture”), among the Company, the Guarantor and U.S. Bank National Association, as trustee (herein called the “Trustee,” which term includes any successor thereto under the Indenture), as supplemented by the
Supplemental Indenture, dated as of July 5, 2011 (the “First Supplemental Indenture”; the Base Indenture, as amended and supplemented by the First Supplemental Indenture and as the same may be further amended and
supplemented from time to time, is hereinafter called the “Indenture”), among the Company, the Guarantor and the Trustee and the Officers’ Certificate of the Company and the Guarantor dated December 11, 2017, delivered
pursuant to Sections 102, 201, 301 and 303 of the Indenture (the “Officers’ Certificate”). Terms (whether or not capitalized) that are defined in the Indenture and used but not otherwise defined in this Guarantee shall
have the respective meanings ascribed thereto in the Indenture. 
 The obligations of the Guarantor to the Holders of the
Notes and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article Sixteen of the Indenture and reference is hereby made to such Indenture for the precise terms of this Guarantee. 

Without limitation to the provisions of Article Sixteen of the Indenture, the Guarantor hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of merger or bankruptcy of the Company, any right to require a proceeding first against the Company, the benefit of discussion, protest or notice with respect to the Notes and all demands
whatsoever. 
 No recourse under or upon any obligation, covenant or agreement contained in the Indenture or the Notes, or
because of any indebtedness evidenced thereby, shall be had against any past, present or future stockholder, employee, officer or director, as such, of the Company, the General Partner, or the Guarantor or of any successor, either directly or
through the Company, the General Partner or the Guarantor or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability
being expressly waived and released by the acceptance of the Notes by the Holders and as part of the consideration for the issue of the Notes. 

This is a continuing Guarantee and shall remain in full force and effect and shall be binding upon the Guarantor and its
successors until full and final payment of all of the Company’s obligations under the Notes and Indenture or until legally discharged in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee
and the Holders of the Notes, and, in the event of any transfer or assignment of rights by any Holder of the Notes or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions hereof. This is a Guarantee of payment and performance and not of collection. 

  
 1 

 This Guarantee shall not be valid or become obligatory for any purpose until the
certificate of authentication on the Note upon which this Guarantee is endorsed shall have been signed manually by the Trustee or a duly authorized Authenticating Agent under the Indenture. 

The obligations of the Guarantor under this Guarantee shall be limited as provided in Article Sixteen of the Indenture to the
extent necessary to ensure that it does not constitute a fraudulent conveyance or fraudulent transfer. 
 THE TERMS OF
ARTICLE SIXTEEN OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 
 This Guarantee shall be governed by, and construed
in accordance with, the laws of the State of New York. 
 (Signature Page Follows) 

  
 2 

 IN WITNESS WHEREOF, the Guarantor has caused this instrument to be duly executed.

  

							
	 Dated:
                    
	 		 	 KILROY REALTY CORPORATION, as Guarantor

				
		 		 	 By:
	 	  

		 		 		 	 Name:

		 		 		 	 Title:

				
		 		 	 By:
	 	  

		 		 		 	 Name:

		 		 		 	 Title:

 ASSIGNMENT 

For value received
                     hereby sell(s) assign(s) and transfer(s) unto
                     (Please insert social security or other Taxpayer Identification Number of assignee) the within Note, and hereby
irrevocably constitutes and appoints                      attorney to transfer said Note on the books of the Company, with full power of
substitution in the premises. 

Dated:                     

 

			
		 	  

		
		 	  

		 	 Signature(s)

		
		 	 Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

		
		 	  

		 	 Signature Guarantee

 NOTICE: The signature on this Assignment must correspond with the name as written upon the face of the Note in
every particular without alteration or enlargement or any change whatever.

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