Document:

Mortgage and Absolute Assignment

 Exhibit 10.7 
 MORTGAGE 
 and 
 ABSOLUTE ASSIGNMENT OF RENTS AND LEASES 
 and 
 SECURITY AGREEMENT 
 (AND FIXTURE
FILING) 
 The parties to this MORTGAGE AND ABSOLUTE ASSIGNMENT OF RENTS AND LEASES AND SECURITY AGREEMENT (AND FIXTURE FILING) (“Mortgage”),
dated as of July 6, 2006, are KBS SABAL PAVILION, LLC, a Delaware limited liability company (“Mortgagor”), with an office at c/o KBS REIT Acquisition II, LLC, 620 Newport Center Drive, Suite 1300, Newport Beach, California 92663, and
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., a Delaware corporation (“MERS” or “Mortgagee”), with a mailing address at MERS Commercial, P.O. Box 2300, Flint, Michigan 48501-2300. 
 RECITALS 

	A.	KBS SABAL PAVILION, LLC, a Delaware limited liability company (“Borrower”) proposes to borrow from Wells Fargo Bank, National Association (“Lender”) and Lender
proposes to lend to Borrower the principal sum of FOURTEEN MILLION SEVEN HUNDRED THOUSAND AND NO/100THS DOLLARS ($14,700,000.00) (“Loan”). The Loan is evidenced by a promissory note (“Note”) executed by Borrower, dated the date
of this Mortgage, payable to the order of Lender in the principal amount of the Loan. The maturity date of the Loan is August 1, 2036. 

  

	B.	The loan documents include this Mortgage, the Note and the other documents described in the Note as Loan Documents (“Loan Documents”). 

  

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 ARTICLE 1. MORTGAGE 
  

	1.1	GRANT. For the purposes of and upon the terms and conditions of this Mortgage, Mortgagor irrevocably mortgages, grants, bargains, sells, conveys, transfers, pledges,
sets over and assigns, and grants a security interest to Mortgagee, its successors and assign, with right of entry and possession, all of Mortgagor’s right, title and interest, whether now owned or hereafter acquired, in or to all of the
following: 

  

	 	a.	That real property (“Land”) located in the city of Tampa, county of Hillsborough, state of Florida, and more particularly described on Exhibit A attached hereto;

  

	 	b.	All appurtenances, easements, rights of way, water and water rights, pumps, pipes, flumes and ditches and ditch rights, water stock, ditch and/or reservoir stock or interests,
royalties, development rights and credits, air rights, minerals, oil rights, all sewer capacity rights, and gas rights, now or later used or useful in connection with, appurtenant to or related to the Land; 

  

	 	c.	All buildings, structures, facilities, other improvements and fixtures now or hereafter located on the Land; 

  

	 	d.	All apparatus, equipment, machinery and appliances and all accessions thereto and renewals and replacements thereof and substitutions therefor used in the operation or occupancy of
the Land, it being intended by the parties that all such items shall be conclusively considered to be a part of the Land, whether or not attached or affixed to the Land; 

  

	 	e.	All land lying in the right-of-way of any street, road, avenue, alley or right-of-way opened, proposed or vacated, and all sidewalks, strips and gores of land adjacent to or used in
connection with the Land; 

  

	 	f.	All additions and accretions to the property described above; 

  

	 	g.	All licenses, authorizations, certificates, variances, consents, approvals and other permits now or hereafter pertaining to the Land and all estate, right, title and interest of
Mortgagor in, to, under or derived from all tradenames or business names relating to the Land or the present or future development, construction, operation or use of the Land; and 

  

	 	h.	All proceeds of any of the foregoing. 

 All of the property
described above is hereinafter collectively defined as the “Property”. The listing of specific rights or property shall not be interpreted as a limitation of general terms. 
 ARTICLE 2. OBLIGATIONS SECURED 
  

	2.1	OBLIGATIONS SECURED. Mortgagor makes the foregoing grant and assignment for the purpose of securing the following obligations (“Secured Obliga­tions”):

  

	 	a.	Full and punctual payment to Lender of all sums at any time owing under the Note; 

  

	 	b.	Payment and performance of all covenants and obligations of Mortgagor under this Mortgage including, without limitation, indemnification obligations and advances made to protect the
Property; 

  

	 	c.	Payment and performance of all additional covenants and obligations of Borrower and Mortgagor under the Loan Documents; 

  

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	 	d.	Payment and performance of all covenants and obligations, if any, which any rider attached as an exhibit to this Mortgage recites are secured hereby; 

  

	 	e.	Payment and performance of all future advances and other obligations that the then record owner of all or part of the Property may agree to pay and/or perform (whether as principal,
surety or guarantor) for the benefit of Mortgagee, when the obligation is evidenced by a writing which recites that it is secured by this Mortgage; 

  

	 	f.	All interest and charges on all obligations secured hereby including, without limitation, prepayment charges, late charges and loan fees; 

  

	 	g.	All modifications, extensions and renewals of any of the obligations secured hereby, however evidenced, including, without limitation: (i) modifications of the required principal
payment dates or interest payment dates or both, as the case may be, deferring or accelerating payment dates wholly or partly; and (ii) modifications, extensions or renewals at a different rate of interest whether or not any such modification,
extension or renewal is evidenced by a new or additional promissory note or notes; and 

  

	 	h.	Payment and performance of any other obligations which are defined as “Secured Obligations” in the Note. 

  

	2.2	FUTURE ADVANCES. This Mortgage is given to secure not only the Secured Obligations, but also such future advances, whether such advances are obligatory or are
to be made at the option of Mortgagee or the holder hereof, or otherwise as are made within 20 years from the date hereof, to the same extent as if such future advances were made on the date of the execution of this Mortgage. The total amount of
Secured Obligations that may be so secured by this Mortgage may be increased or decreased from time to time, but the total unpaid balance so secured at any one time shall not exceed twice the face amount of the Note, plus interest thereon, and any
disbursements made under this Mortgage for the payment of impositions, taxes, assessments, levies, insurance, or otherwise with interest on such disbursements as provided for herein, plus any increases in the principal balance as the result of
negative amortization or deferred interest, if any. It is agreed that any additional sum or sums advanced by Mortgagee pursuant to the terms hereof shall be equally secured with and have the same priority as the original Secured Obligations and
shall be subject to all of the terms, provisions and conditions of this Mortgage, whether or not such additional loans or advances are evidenced by other promissory notes or other guaranties of Mortgagor and whether or not identified by a recital
that it or they are secured by this Mortgage. It is further agreed that any additional promissory note or guaranty or promissory notes or guaranties executed and delivered pursuant to this paragraph shall automatically be deemed to be included in
the term “Note” wherever it appears in the context of this Mortgage. Without the prior written consent of Mortgagee, which Mortgagee may grant or withhold in its sole discretion, Mortgagor shall not file for record any notice limiting the
maximum principal amount that may be secured by this Mortgage to a sum less than the maximum principal amount set forth in this paragraph. 

  

	2.3	OBLIGATIONS. The term “obligations” is used herein in its broadest and most comprehensive sense and shall be deemed to include, without limitation, all
interest and charges, prepayment charges, late charges and loan fees at any time accruing or assessed on any of the Secured Obligations. 

  

	2.4	MATURITY DATE. The maturity date of the Note is July 1, 2036. 

  

	2.5	INCORPORATION. All terms and conditions of the documents which evidence any of the Secured Obligations are incor­porated herein by this reference. All persons who
may have or acquire an interest in the Property shall be deemed to have notice of the terms of the Secured Obligations and to have notice that the rate of interest on one or more Secured Obligation may vary from time to time.

  

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 ARTICLE 3. ABSOLUTE ASSIGNMENT OF RENTS AND LEASES 
  

	3.1	ASSIGNMENT. Mortgagor irrevocably assigns to Mortgagee all of Mortgagor’s right, title and interest in, to and under: (a) all present and future leases of the
Property or any portion thereof, all licenses and agreements relating to the management, leasing or operation of the Property or any portion thereof, and all other agreements of any kind relating to the use or occupancy of the Property or any
portion thereof, whether such leases, licenses and agreements are now existing or entered into after the date hereof (“Leases”); and (b) the rents, issues, deposits and profits of the Property, including, without limitation, all amounts
payable and all rights and benefits accruing to Mortgagor under the Leases (“Payments”). The term “Leases” shall also include all guarantees of and security for the tenants’ performance thereunder, and all amendments,
extensions, renewals or modifications thereto which are permitted hereunder. This is a present and absolute assignment, not an assignment for security purposes only, and Mortgagee’s right to the Leases and Payments is not contingent upon, and
may be exercised without possession of, the Property. 

  

	3.2	GRANT OF LICENSE. Mortgagee confers upon Mortgagor a revocable license (“License”) to collect and retain the Payments as they become due and payable, until
the occurrence of a Default (as hereinafter defined). Upon a Default, the License shall be automatically revoked and Mortgagee may collect and apply the Payments pursuant to the terms hereof without notice and without taking possession of the
Property. All Payments thereafter collected by Mortgagor shall be held by Mortgagor as trustee under a constructive trust for the benefit of Mortgagee. Mortgagor hereby irrevocably authorizes and directs the tenants under the Leases to rely upon and
comply with any notice or demand by Mortgagee for the payment to Mortgagee of any rental or other sums which may at any time become due under the Leases, or for the performance of any of the tenants’ undertakings under the Leases, and the
tenants shall have no right or duty to inquire as to whether any Default has actually occurred or is then existing. Mortgagor hereby relieves the tenants from any liability to Mortgagor by reason of relying upon and complying with any such notice or
demand by Mortgagee. Mortgagee may apply, in its sole discretion, any Payments so collected by Mortgagee against any Secured Obligation or any other obligation of Borrower, Mortgagor or any other person or entity, under any document or instrument
related to or executed in connection with the Loan Documents, whether existing on the date hereof or hereafter arising. Collection of any Payments by Mortgagee shall not cure or waive any Default or notice of Default or invalidate any acts done
pursuant to such notice. If and when no Default exists, Mortgagee shall re-confer the License upon Mortgagor until the occurrence of another Default. 

  

	3.3	EFFECT OF ASSIGNMENT. The foregoing irrevocable assignment shall not cause Mortgagee to be: (a) a mortgagee in possession; (b) responsible or liable for the control,
care, management or repair of the Property or for performing any of the terms, agreements, undertakings, obligations, representations, warranties, covenants and conditions of the Leases; (c) responsible or liable for any waste committed on the
Property by the tenants under any of the Leases or by any other parties; for any dangerous or defective condition of the Property; or for any negligence in the management, upkeep, repair or control of the Property resulting in loss or injury or
death to any tenant, licensee, employee, invitee or other person; or (d) responsible for or impose upon Mortgagee any duty to produce rents or profits. Mortgagee shall not directly or indirectly be liable to Mortgagor or any other person as a
consequence of: (e) the exercise or failure to exercise any of the rights, remedies or powers granted to Mortgagee hereunder; or (f) the failure or refusal of Mortgagee to perform or discharge any obligation, duty or liability of Mortgagor arising
under the Leases. 

  

	3.4	COVENANTS-LONG TERM LEASES. 

  

	 	a.	All Leases. Mortgagor shall, at Mortgagor’s sole cost and expense: 

  

	 	(i)	perform all obligations of the landlord under the Leases and use reasonable efforts to enforce performance by the tenants of all obligations of the tenants under the Leases;

  

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	 	(ii)	use reasonable efforts to keep the Property leased at all times to tenants which Mortgagor reasonably and in good faith believes are creditworthy at rents not less than the fair
market rental value (including, but not limited to, free or discounted rents to the extent the market so requires); 

  

	 	(iii)	promptly upon Mortgagee’s request, deliver to Mortgagee a copy of each requested Lease and all amendments thereto and waivers thereof; and 

  

	 	(iv)	promptly upon Mortgagee’s request, (A) execute and record any additional assignments of landlord’s interest under any Lease to Mortgagee, and (B) use commercially
reasonable efforts to obtain a subordinations, non-disturbance and attornment agreement for any new Lease entered into by Mortgagor, in form and substance satisfactory to Mortgagee. 

 Unless consented to in writing by Mortgagee or otherwise permitted under any other provision of the Loan Documents, Mortgagor shall not: 
  

	 	(v)	grant any tenant under any Lease any option, right of first refusal or other right to purchase all or any portion of the Property under any circumstances; 

 

	 	(vi)	grant any tenant under any Lease any right to prepay rent more than 1 month in advance; 

  

	 	(vii)	except upon Mortgagee’s request, execute any assignment of landlord’s interest in any Lease; or 

  

	 	(viii)	collect rent or other sums due under any Lease in advance, other than to collect rent 1 month in advance of the time when it becomes due. 

 Any such attempted action in violation of the provisions of this Section shall be null and void. 
 Mortgagor shall deposit with Mortgagee any sums received by Mortgagor in consideration of any termination, modification or amendment of any Lease or any
release or discharge of any tenant under any Lease from any obligation thereunder and any such sums received by Mortgagor shall be held in trust by Mortgagor for such purpose. Notwithstanding the foregoing, so long as no Default exists, the portion
of any such sum received by Mortgagor with respect to any Lease which is less than $50,000 shall be payable to Mortgagor. All such sums received by Mortgagee with respect to any Lease shall be deemed “Impounds” (as defined in Section
6.12.b) and shall be deposited by Mortgagee into a pledged account in accordance with Section 6.12.b. If no Default exists, Mortgagee shall release such Impounds to Mortgagor from time to time as necessary to pay or reimburse Mortgagor
for such tenant improvements, brokerage commissions and other leasing costs as may be required to re-tenant the affected space; provided, however, Mortgagee shall have received and approved each of the following for each tenant for which such costs
were incurred; (1) Mortgagor’s written request for such release, including the name of the tenant, the location and net rentable area of the space and a description and cost breakdown of the tenant improvements or other leasing costs covered by
the request; (2) Mortgagor’s certification that any tenant improvements have been completed lien-free and in a workmanlike manner; (3) a fully executed Lease, or extension or renewal of the current Lease; (4) an estoppel certificate executed by
the tenant including its acknowledgement that all tenant improvements have been satisfactorily completed; and (5) such other information with respect to such costs as Mortgagee may require. Following the re-tenanting of all affected space
(including, without limitation, the completion of all tenant improvements), and provided no Default exists, Mortgagee shall release any remaining such Impounds relating to the affected space to Mortgagor. Mortgagor shall construct all tenant
improvements in a workmanlike manner and in accordance with all applicable laws, ordinances, rules and regulations. Notwithstanding the foregoing, Mortgagee acknowledges and agrees that, promptly following Mortgagor’s written request, Mortgagee
shall remit to Mortgagor all Impounds deposited into the pledged account pursuant to this Section to the extent such Impounds, at any time, exceed the amount necessary to pay for the leasing costs for which such Impounds were originally deposited.

  

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	 	b.	Major Leases. Mortgagor shall, at Mortgagor’s sole cost and expense, give Mortgagee prompt written notice of any material default by landlord or tenant under any
Major Lease (as defined below). Unless consented to in writing by Mortgagee (such consent not to be unreasonably withheld) or otherwise permitted under any other provision of the Loan Documents, Mortgagor shall not: 

  

	 	(i)	enter into any Major Lease which (aa) is not on fair market terms (which terms may include free or discounted rent to the extent the market so requires); (bb) does not contain a
provision requiring the tenant to execute and deliver to the landlord an estoppel certificate in form and substance satisfactory to the landlord promptly upon the landlord’s request; or (cc) allows the tenant to assign or sublet the premises
without the landlord’s consent; 

  

	 	(ii)	reduce any rent or other sums due from the tenant under any Major Lease; 

  

	 	(iii)	terminate or materially modify or amend any Major Lease; or 

  

	 	(iv)	release or discharge the tenant or any guarantor under any Major Lease from any material obligation thereunder. 

 Any such attempted action in violation of the provisions of this Section shall be null and void. 
 “Major Lease”, as used herein, shall mean any Lease, which is, at any time: (1) a Lease of more than 20% of the total rentable area of the
Property, as reasonably determined by Mortgagee; or (2) a Lease which generates a gross base monthly rent exceeding 20% of the total gross base monthly rent generated by all Leases (excluding all Leases under which the tenant is then in default), as
reasonably determined by Mortgagee. Mortgagor’s obligations with respect to Major Leases shall be governed by the provisions of Section 3.4.a as well as by the provisions of this Section. 
 “materially modify or amend,” as used in Section 3.4.b.(iii) above, shall mean an amendment or modification to an existing Lease that
changes the economic terms of the Lease in a way that decreases the effective rent per net rentable square foot (taking into account tenant improvement allowances and other concessions) payable thereunder or that shortens the total Lease term.

  

	 	c.	Mortgagee’s Consent; Failure to Deny Request. Any written request by Mortgagee for consent pursuant to this Section 3.4 shall include (and be deemed
complete if it includes) a term sheet (“Term Sheet”) in the form and containing the applicable information attached as Exhibit B attached hereto and made a part hereof. Mortgagee’s failure to deny any written request by
Mortgagor for Mortgagee’s consent under the provisions of Sections 3.4.a or 3.4.b within five (5) Business Days after Mortgagee’s receipt of such request (and all documents and information required pursuant to the Term Sheet)
shall be deemed to constitute Mortgagee’s consent to such request. Mortgagee’s consent shall not be required with respect to any new lease or lease amendment entered into by Mortgagor that is consistent with the Term Sheet submitted by
Mortgagor to Mortgagee, which is either approved or deemed approved by Beneficiary. However, Mortgagor shall promptly provide Mortgagee a copy of the fully executed new lease amendment or modification. 

  

	3.5	ESTOPPEL CERTIFICATES. Within 30 days after request by Mortgagee, Mortgagor shall deliver to Mortgagee and to any party designated by Mortgagee, estoppel certificates
relating to the Leases executed by Mortgagor and by each of the tenants, in form and substance acceptable to Mortgagee; provided, however, if any tenant shall fail or refuse to so execute and deliver any such estoppel certificate upon request,
Mortgagor shall use reasonable efforts to cause such tenant to execute and deliver such estoppel certificate but such tenant’s continued failure or refusal to do so, despite Mortgagor’s reasonable efforts, shall not constitute a default by
Mortgagor under this Section. 

  

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	3.6	RIGHT OF SUBORDINATION. Mortgagee may at any time and from time to time by specific written instrument intended for the purpose unilaterally subordinate the lien of
this Mortgage to any Lease, without joinder or consent of, or notice to, Mortgagor, any tenant or any other person. Notice is hereby given to each tenant under a Lease of such right to subordinate. No subordination referred to in this Section shall
constitute a subordination to any lien or other encumbrance, whenever arising, or improve the right of any junior lienholder. Nothing herein shall be construed as subordinating this Mortgage to any Lease. 

 ARTICLE 4. SECURITY AGREEMENT AND FIXTURE FILING 
  

	4.1	SECURITY INTEREST. Mortgagor grants and assigns to Mortgagee a security interest to secure payment and performance of all of the Secured Obligations, in all of the
following described personal property in which Mortgagor now or at any time hereafter has any interest (“Collateral”): 

 All goods, building and other materials, supplies, work in process, equipment, machinery, fixtures, furniture, furnishings, signs and other personal property, wherever situated, which are or are to be incorporated into, used in connection
with or appropriated for use on the Property; all rents, issues, deposits and profits of the Property (to the extent, if any, they are not subject to the Absolute Assignment of Rents and Leases); all inventory, accounts, cash receipts, deposit
accounts, impounds, accounts receivable, contract rights, general intangibles, software, chattel paper, instruments, documents, promissory notes, drafts, letters of credit, letter of credit rights, supporting obligations, insurance policies,
insurance and condemnation awards and proceeds, any other rights to the payment of money, trade names, trademarks and service marks arising from or related to the Property or any business now or hereafter conducted thereon by Mortgagor; all permits,
consents, approvals, licenses, authorizations and other rights granted by, given by or obtained from, any governmental entity with respect to the Property; all deposits or other security now or hereafter made with or given to utility companies by
Mortgagor with respect to the Property; all advance payments of insurance premiums made by Mortgagor with respect to the Property; all plans, drawings and specifications relating to the Property; all loan funds held by Mortgagee, whether or not
disbursed; all funds deposited with Mortgagee pursuant to any Loan Document, all reserves, deferred payments, deposits, accounts, refunds, cost savings and payments of any kind related to the Property or any portion thereof, including, without
limitation, all “Impounds” as defined herein; together with all replacements and proceeds of, and additions and accessions to, any of the foregoing, and all books, records and files relating to any of the foregoing. 
 As to all of the above-described personal property which is or which hereafter becomes a “fixture” under the Florida Uniform Commercial Code
(the “UCC”), this Mortgage constitutes a fixture filing under Florida Statutes Section 679.313 and 679.402, as amended and recodified from time to time, this Mortgage shall constitute a Fixture Filing recorded in the real estate records.
Notwithstanding the foregoing, nothing herein shall be deemed to create any lien or interest in favor of the Mortgagee under this Mortgage in any such Collateral which is not a fixture, and the purpose of this Article IV is to create a fixture
filing under Florida Statutes Section 679.313 and 679.402, as amended or recodified from time to time. 
  

	4.2	COVENANTS. Mortgagor agrees: (a) to execute and deliver such documents as Mortgagee deems necessary to create, perfect and continue the security interests contemplated
hereby; (b) not to change its name, and, as applicable, its chief executive offices, its principal residence or the jurisdiction in which it is organized without giving Mortgagee at least 30 days’ prior written notice thereof; and (c) to
cooperate with Mortgagee in perfecting all security interests granted herein and in obtaining such agreements from third parties as Mortgagee deems necessary, proper or convenient in connection with the preservation, perfection or enforcement of any
of Mortgagee’s rights hereunder. 

  

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	4.3	RIGHTS OF MORTGAGEE. In addition to Mortgagee’s rights as a “Secured Party” under the UCC, Mortgagee may, but shall not be obligated to, at any time
without notice and at the expense of Mortgagor: (a) give notice to any person of Mortgagee’s rights hereunder and enforce such rights at law or in equity; (b) insure, protect, defend and preserve the Collateral or any rights or interests of
Mortgagee therein; and (c) inspect the Collateral. Notwithstanding the above, in no event shall Mortgagee be deemed to have accepted any property other than cash in satisfaction of any obligation of Mortgagor to Mortgagee unless Mortgagee shall make
an express written election of said remedy under the UCC or other applicable law. 

  

	4.4	RIGHTS OF MORTGAGEE UPON DEFAULT. Upon the occurrence of a Default, then in addition to all of Mortgagee’s rights as a “Secured Party” under the UCC or
otherwise at law: 

  

	 	a.	Disposition of Collateral. Mortgagee may: (i) upon written notice, require Mortgagor to assemble any or all of the Collateral and make it available to Mortgagee at a
place designated by Mortgagee; (ii) without prior notice, enter upon the Property or other place where the Collateral may be located and take possession of, collect, sell, lease, license and otherwise dispose of the Collateral, and store the same at
locations acceptable to Mortgagee at Mortgagor’s expense; or (iii) sell, assign and deliver the Collateral at any place or in any lawful manner and bid and become purchaser at any such sales; and 

  

	 	b.	Other Rights. Mortgagee may, for the account of Mortgagor and at Mortgagor’s expense: (i) operate, use, consume, sell, lease, license or otherwise dispose of the
Collateral as Mortgagee deems appropriate for the purpose of performing any or all of the Secured Obligations; (ii) enter into any agreement, compromise or settlement including insurance claims, which Mortgagee may deem desirable or proper with
respect to the Collateral; and (iii) endorse and deliver evidences of title for, and receive, enforce and collect by legal action or otherwise, all indebtedness and obligations now or hereafter owing to Mortgagor in connection with or on account of
the Collateral. 

 Mortgagor acknowledges and agrees that a disposition of the Collateral in accordance with Mortgagee’s
rights and remedies as heretofore provided is a disposition thereof in a commercially reasonable manner and that 10 days’ prior notice of such disposition is commercially reasonable notice. Mortgagee shall have no obligation to process or
prepare the Collateral for sale or other disposition. In disposing of the Collateral, Mortgagee may disclaim all warranties of title, possession, quiet enjoyment and the like. Any proceeds of any sale or other disposition of the Collateral may be
applied by Mortgagee first to the reasonable expenses incurred by Mortgagee in connection therewith, including, without limitations, reasonable attorneys’ fees and disbursements, and then to the payment of the Secured Obligations, in such order
of application as Mortgagee may from time to time elect. 
  

	4.5	POWER OF ATTORNEY. Mortgagor hereby irrevocably appoints Mortgagee as Mortgagor’s attorney-in-fact (such agency being coupled with an interest), and as such
attorney-in-fact, Mortgagee may, without the obligation to do so, in Mortgagee’s name or in the name of Mortgagor, prepare, execute, file and record financing statements, continuation statements, applications for registration and like papers
necessary to create, perfect or preserve any of Mortgagee’s security interests and rights in or to the Collateral, and upon a Default, take any other action required of Mortgagor; provided, however, that Mortgagee as such
attorney-in-fact shall be accountable only for such funds as are actually received by Mortgagee. 

 ARTICLE 5.
REPRESENTATIONS AND WARRANTIES 
  

	5.1	REPRESENTATIONS AND WARRANTIES. Mortgagor represents and warrants to Mortgagee that, to Mortgagor’s current actual knowledge after reasonable investigation and
inquiry, the following statements are true and correct as of the Effective Date: 

  

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	 	a.	Legal Status. Mortgagor and Borrower are duly organized and existing and in good standing under the laws of the state(s) in which Mortgagor and Borrower are organized.
Mortgagor and Borrower are qualified or licensed to do business in all jurisdictions in which such qualification or licensing is required. 

  

	 	b.	Permits. Mortgagor and Borrower possess all permits, franchises and licenses and all rights to all trademarks, trade names, patents and fictitious names, if any,
necessary to enable Mortgagor and Borrower to conduct the business(es) in which Mortgagor and Borrower are now engaged in compliance with applicable law. 

  

	 	c.	Authorization and Validity. The execution and delivery of the Loan Documents have been duly authorized and the Loan Documents constitute valid and binding obligations
of Mortgagor, Borrower or the party which executed the same, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, moratorium or other laws affecting the enforcement of
creditors’ rights, or by the application of rules of equity. 

  

	 	d.	Violations. The execution, delivery and performance by Mortgagor and Borrower of each of the Loan Documents do not violate any provision of any law or
regulation, or result in any breach or default under any contract, obligation, indenture or other instrument to which Mortgagor or Borrower is a party or by which Mortgagor or Borrower is bound. 

  

	 	e.	Litigation. There are no pending or threatened actions, claims, investigations, suits or proceedings before any governmental authority, court or administrative agency
which may adversely affect the financial condition or operations of Mortgagor or Borrower other than those previously disclosed in writing by Mortgagor or Borrower to Mortgagee. 

  

	 	f.	Financial Statements. The financial statements of Mortgagor and Borrower, of each general partner (if Mortgagor or Borrower is a partnership), of each member (if
Mortgagor or Borrower is a limited liability company) and of each guarantor, if any, previously delivered by Mortgagor or Borrower to Mortgagee: (i) are materially complete and correct; (ii) present fairly the financial condition of such party; and
(iii) have been prepared in accordance with the same accounting standard used by Mortgagor or Borrower to prepare the financial statements delivered to and approved by Mortgagee in connection with the making of the Loan, or other accounting
standards approved by Mortgagee. Since the date of such financial statements, there has been no material adverse change in such financial condition, nor have any assets or properties reflected on such financial statements been sold, transferred,
assigned, mortgaged, pledged or encumbered except as previously disclosed in writing by Mortgagor or Borrower to Mortgagee and approved in writing by Mortgagee. 

  

	 	g.	Reports. All reports, documents, instruments and information delivered to Mortgagee in connection with the Loan: (i) are correct and sufficiently complete to give
Mortgagee accurate knowledge of their subject matter; and (ii) do not contain any misrepresentation of a material fact or omission of a material fact which omission makes the provided information misleading. 

  

	 	h.	Income Taxes. There are no pending assessments or adjustments of Mortgagor’s or Borrower’s income tax payable with respect to any year.

  

	 	i.	Subordination. There is no agreement or instrument to which Borrower is a party or by which Borrower is bound that would require the subordination in right of payment
of any of Borrower’s obligations under the Note to an obligation owed to another party. 

  

	 	j.	Title. Mortgagor lawfully holds and possesses fee simple title to the Property, without limitation on the right to encumber same except as disclosed in the title
insurance policy delivered to Mortgagee in connection with the Loan. This Mortgage is a first lien on the Property prior and superior to all other 

  

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 liens and encumbrances on the Property except: (i) liens for real estate taxes and assessments not yet
due and payable; (ii) senior exceptions previously approved by Mortgagee and shown in the title insurance policy insuring the lien of this Mortgage; and (iii) other matters, if any, previously disclosed to Mortgagee by Mortgagor in a writing
specifically referring to this representation and warranty. None of the senior exceptions to the Mortgage materially and adversely interferes with the current use of the Property, the security intended to be provided by the Mortgage, the
Borrower’s ability to pay the Secured Obligations when and as due or the value of the Property. 
  

	 	k.	Mechanics’ Liens. There are no mechanics’ or similar liens or claims which have been filed for work, labor or material (and no rights are outstanding that
under law could give rise to any such liens) affecting the Property which are or may be prior to or equal to the lien of this Mortgage. 

  

	 	l.	Encroachments. Except as shown in the survey, if any, previously delivered to Mortgagee, none of the buildings or other improvements which were included for the
purpose of determining the appraised value of the Property lies outside of the boundaries or building restriction lines of the Property and no buildings or other improvements located on adjoining properties encroach upon the Property.

  

	 	m.	Leases. Except as disclosed to Mortgagee in a written notice specifically identifying the same: (i) all existing Leases are in full force and effect and are
enforceable in accordance with their respective terms; (ii) no material breach or default by any party, or event which would constitute a material breach or default by any party after notice or the passage of time, or both, exists under any existing
Lease; (iii) none of the landlord’s interests under any of the Leases, including, but not limited to, rents, additional rents, charges, issues or profits, has been transferred or assigned; and (iv) no rent or other payment under any existing
Lease has been paid by any tenant for more than 1 month in advance. 

  

	 	n.	Collateral. Mortgagor has good title to the existing Collateral, free and clear of all liens and encumbrances except those, if any, previously disclosed to Mortgagee
by Mortgagor in writing specifically referring to this representation and warranty. Mortgagor’s chief executive office (or principal residence, if applicable) is located at the address shown on page one of this Mortgage. Mortgagor is an
organization organized solely under the laws of the State of Delaware. All organizational documents of Mortgagor delivered to Mortgagee are complete and accurate in every respect. Mortgagor’s legal name is exactly as shown on page one of this
Mortgage. 

  

	 	o.	Condition of Property. Except as shown in the property condition survey or other engineering reports, if any, previously delivered to or obtained by Mortgagee, the
Property is in good condition and repair and is free from any damage that would materially and adversely affect the value of the Property as security for the Loan or the intended use of the Property. 

  

	 	p.	Hazardous Materials. Except as shown in the environmental assessment report(s), if any, previously delivered to or obtained by Mortgagee, the Property is not and has
not been a site for the use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal, transportation or presence of Hazardous Materials (as hereinafter defined) except as otherwise previously disclosed in
writing by Mortgagor to Mortgagee. 

  

	 	q.	Hazardous Materials Laws. Except as disclosed in the environmental assessment reports delivered to Mortgagee, the Property complies with all Hazardous Materials Laws
(as hereinafter defined). 

  

	 	r.	Hazardous Materials Claims. Except as disclosed in the environmental assessment reports delivered to Mortgagee, there are no pending or threatened Hazardous Materials
Claims (as hereinafter defined). 

  

	 	s.	Wetlands. Except as expressly identified in the survey delivered to Mortgagee, No part of the Property consists of or is classified as wetlands, tidelands or swamp and
overflow lands. 

  

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	 	t.	Compliance With Laws. All federal, state and local laws, rules and regulations applicable to the Property, including, without limitation, all zoning and building
requirements and all requirements of the Americans With Disabilities Act of 1990, as amended from time to time (42 U. S. C. Section 12101 et seq.) have been satisfied or complied with. Mortgagor is in possession of all certificates of occupancy and
all other licenses, permits and other authorizations required by applicable law for the existing use of the Property. All such certificates of occupancy and other licenses, permits and authorizations are valid and in full force and effect.

  

	 	u.	Property Taxes and Other Liabilities. All taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, and ground rents, if any, which
previously became due and owing in respect of the Property have been paid or will be paid prior to delinquency. 

  

	 	v.	Condemnation. There is no proceeding pending or threatened for the total or partial condemnation of the Property. 

  

	 	w.	Homestead. There is no homestead or other exemption available to Mortgagor which would materially interfere with the right to sell the Property or the right to
foreclose this Mortgage. 

  

	 	x.	Solvency. None of the transactions contemplated by the Loan will be or have been made with an actual intent to hinder, delay or defraud any present or future creditors
of Mortgagor, and Mortgagor, on the Effective Date, will have received fair and reasonably equivalent value in good faith for the grant of the liens or security interests effected by the Loan Documents. On the Effective Date, Mortgagor will be
solvent and will not be rendered insolvent by the transactions contemplated by the Loan Documents. Mortgagor is able to pay its debts as they become due. 

  

	 	y.	Separate Tax Parcel(s). The Property is assessed for the real estate tax purposes as one or more wholly independent tax parcels, separate from any other real property,
and no other real property is assessed and taxed together with the Property or any portion thereof. 

  

	 	z.	Utilities; Water; Sewer. The Property is served by all utilities required for the current or contemplated use thereof. All utility service is provided by public
utilities and the Property has accepted or is equipped to accept such utility service. The Property is served by public water and sewer systems. 

  

	 	aa.	ERISA Matters. Mortgagor is not an employee benefit plan as defined in Section 3.(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), which is subject to Title I of ERISA, nor a plan as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (each of the foregoing hereinafter referred to individually and collectively as
“Plan”). Mortgagor’s assets do not constitute “plan assets” of any plan within the meaning of Department of Labor Regulation Section 2510.3-101. Mortgagor will not transfer or convey the Property to a Plan or to a person or
entity whose assets constitute such “plan assets”, and Mortgagor will not be reconstituted as a Plan or as an entity whose assets constitute “plan assets.” With respect to the Loan, Mortgagor is acting on Mortgagor’s own
behalf and not on account of or for the benefit of any Plan. 

  

	 	bb.	Lease. Borrower represents and warrants that the tenant under the Existing Ford Lease (as defined in the Note) has not exercised, and has no current right to exercise
the cancellation option in Section 5.02(k) of the Existing Ford Lease, or the option to expand in Exhibit H to the Existing Ford Lease. 

  

	5.2	COMMERCIAL LOAN. Borrower warrants that the loan evidenced by this Note is being made solely to acquire or carry on a business or commercial enterprise, and/or
Borrower is a business or commercial organization. Borrower further warrants that all of the proceeds of this Note shall be used for commercial purposes and stipulates that the loan evidenced by this Note shall be construed for all purposes as a
commercial loan, and is made for other than personal, family or household purposes. 

  

 11 

	5.3	REPRESENTATIONS, WARRANTIES AND COVENANTS REGARDING STATUS (LEVEL III SPE). Mortgagor hereby represents, warrants and covenants to Mortgagee that with respect to both
Mortgagor and KBS REIT Acquisition II, LLC, a Delaware limited liability company, a member of Mortgagor: 

  

	 	a.	each such entity was organized solely for the purpose of (i) owning the Property; (ii) acting as a general partner of a partnership which owns the Property; or (iii) acting as a
member of a limited liability company which owns the Property; 

  

	 	b.	each such entity has not and will not engage in any business unrelated to (i) the ownership of the Property; (ii) acting as general partner of a partnership which owns the Property;
or (iii) acting as a member of a limited liability company which owns the Property; 

  

	 	c.	each such entity has not and will not have any assets other than the Property (and personal property incidental to the ownership and operation of the Property) or its partnership or
membership interest in the partnership or limited liability company which owns the Property; 

  

	 	d.	each such entity has not and will not engage in, seek or consent to any amendment of its articles of organization, certificate of formation or operating agreement, as applicable, if
such amendment would impair the special purpose bankruptcy remote structure of Mortgagor or KBS REIT Acquisition II, LLC, or result in the violation of the transfer provisions of Section 6.15 hereof or any other provisions of the Loan
Documents; 

  

	 	e.	each such entity has not and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale, or transfer of partnership or
membership interest, as applicable; 

  

	 	f.	each such entity, without the unanimous consent of all of its general partners, directors or members, as applicable, shall not file or consent to the filing of any bankruptcy or
insolvency petition or otherwise institute insolvency proceedings with respect to itself or any other entity in which it has a direct or indirect legal or beneficial ownership interest; 

  

	 	g.	each such entity has no indebtedness (and will have no indebtedness) other than (i) the Loan (to the extent it is liable under the terms of the Loan Documents); and (ii) unsecured
trade debt and/or operating expenses (which shall exclude any real estate taxes or insurance premiums) not to exceed 3% (which 3% cap shall not apply to real estate taxes or insurance premiums) of the loan amount in the aggregate with respect to
Mortgagor or $10,000 in the aggregate with respect to each such other entity, which is not evidenced by a note and is incurred in the ordinary course of its business in connection with owning, operating and maintaining the Property (or its interest
in Mortgagor, as applicable) and is paid within 60 days from the date incurred, or, if later, prior to delinquency; 

  

	 	h.	each such entity has not and will not fail to correct any known misunderstanding regarding the separate identity of such entity; 

  

	 	i.	except for funds deposited into the Restricted Account (as such term is defined in the Cash Management Agreement) pursuant to the Cash Management Agreement, each such entity has
maintained and will maintain its accounts, books and records separate from any other person or entity; 

  

	 	j.	each such entity has maintained and will maintain its books, records, resolutions and agreements as official records; 

  

	 	k.	each such entity (i) has not and will not commingle its funds or assets with those of any other entity; and (ii) has held and will hold its assets in its own name;

  

 12 

	 	l.	each such entity has conducted and will conduct its business in its own name; 

  

	 	m.	each such entity has maintained and will maintain its accounting records and other entity documents separate from any other person or entity; 

  

	 	n.	each such entity has prepared and will prepare separate tax returns and financial statements, or if part of a consolidated group, is shown as a separate member of such group;

  

	 	o.	each such entity has paid and will pay its own liabilities and expenses out of its own funds and assets; 

  

	 	p.	each such entity has held and will hold regular meetings, as appropriate, to conduct its business and has observed and will observe all corporate, partnership or limited liability
company formalities and record keeping, as applicable; 

  

	 	q.	each such entity has not and will not assume or guarantee or become obligated for the debts of any other entity or hold out its credit as being available to satisfy the obligations
of any other entity; 

  

	 	r.	each such entity has not and will not acquire obligations or securities of its partners, members or shareholders; 

  

	 	s.	each such entity has allocated and will allocate fairly and reasonably the costs associated with common employees and any overhead for shared office space and each such entity has
used and will use separate stationery, invoices and checks; 

  

	 	t.	each such entity has not and will not pledge its assets for the benefit of any other person or entity; 

  

	 	u.	each such entity has held and identified itself and will hold itself out and identify itself as a separate and distinct entity under its own name and not as a division or part of
any other person or entity; 

  

	 	v.	each such entity has not made and will not make loans to any person or entity; 

  

	 	w.	each such entity has not and will not identify its partners, members or shareholders, or any affiliates of any of the foregoing, as a division or part of it;

  

	 	x.	each such entity has not entered into and will not enter into or be a party to, any transaction with its partners, members, shareholders, or any affiliates of any of the foregoing,
except in the ordinary course of its business pursuant to written agreements and on terms which are intrinsically fair and are no less favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated third
party; 

  

	 	y.	each such entity has paid and will pay the salaries of its own employees and has maintained and will maintain a sufficient number of employees in light of its contemplated business
operations; 

  

	 	z.	each such entity has maintained and will maintain adequate capital in light of its contemplated business operations; 

  

	 	aa.	such entity shall be a single member limited liability company which (i) shall be organized in the State of Delaware and (ii) shall have at least one springing member which, upon
the dissolution of such sole member or the withdrawal or the disassociation of the sole member from such entity, shall immediately become the sole member of such entity; and 

  

 13 

	 	bb.	such entity’s limited liability company operating agreement shall contain the provisions set forth in this Section 5.3 and any such entity shall conduct its business and
operations in strict compliance with the terms contained therein. 

 ARTICLE 6. RIGHTS AND DUTIES OF THE PARTIES

  

	6.1	MAINTENANCE AND PRESERVATION OF THE PROPERTY. Mortgagor shall: (a) keep the Property in good condition and repair; (b) complete or restore promptly and in workmanlike
manner the Property or any part thereof which may be damaged or destroyed; (c) comply and cause the Property to comply with (i) all laws, ordinances, regulations and standards, (ii) all covenants, conditions, restrictions and equitable servitudes,
whether public or private, of every kind and character and (iii) all requirements of insurance companies and any bureau or agency which establishes standards of insurability, which laws, covenants or requirements affect the Property and pertain to
acts committed or conditions existing thereon, including, without limitation, any work of alteration, improvement or demolition as such laws, covenants or requirements mandate; (d) operate and manage the Property at all times in a professional
manner and do all other acts which from the character or use of the Property may be reasonably necessary to maintain and preserve its value; (e) promptly after execution, deliver to Mortgagee a copy of any management agreement concerning the
Property and all amendments thereto and waivers thereof; and (f) execute and acknowledge all further documents, instruments and other papers as Mortgagee deems necessary or appropriate to preserve, continue, perfect and enjoy the benefits of this
Mortgage and perform Mortgagor’s obligations, including, without limitation, statements of the amount secured hereby then owing and statements of no offset. Mortgagor shall not: (g) remove or demolish all or any material part of the Property;
(h) alter either (i) the exterior of the Property in a manner which materially and adversely affects the value of the Property or (ii) the roof or other structural elements of the Property in a manner which requires a building permit except for
tenant improvements required under the Leases; (i) initiate or acquiesce in any change in any zoning or other land classification which affects the Property; or (j) commit or permit waste of the Property. 

  

	6.2	HAZARDOUS MATERIALS. Without limiting any other provision of this Mortgage, Mortgagor agrees as follows: 

  

	 	a.	Prohibited Activities. Mortgagor shall not cause or permit the Property to be used as a site for the use, generation, manufacture, storage, treatment, release,
discharge, disposal, transportation or presence of any of the following (collectively, “Hazardous Materials”): oil or other petroleum products; flammable explosives; asbestos; urea formaldehyde insulation; radioactive materials; hazardous
wastes; fungus, mold, mildew, pores or other biological or microbial agents the presence of which may affect human health, impair occupancy or materially affect the value or utility of the Property; toxic or contaminated substances or similar
materials, including, without limitation, any substances which are “hazardous substances,” “hazardous wastes,” “hazardous materials” or “toxic substances” under the Hazardous Materials Laws (defined below)
and/or other applicable environmental laws, ordinances or regulations. 

  

	 	    	The foregoing to the contrary notwithstanding, (i) Mortgagor may store, maintain and use on the Property janitorial and maintenance supplies, paint and other Hazardous Materials of
a type and in a quantity readily available for purchase by the general public and normally stored, maintained and used by owners and managers of properties of a type similar to the Property; and (ii) tenants of the Property may store, maintain and
use on the Property (and, if any tenant is a retail business, hold in inventory and sell in the ordinary course of such tenant’s business) Hazardous Materials of a type and quantity readily available for purchase by the general public and
normally stored, maintained and used (and, if tenant is a retail business, sold) by tenants in similar lines of business on properties similar to the Property. 

  

	 	b.	Hazardous Materials Laws. Mortgagor shall comply and cause the Property to comply with all federal, state and local laws, ordinances and regulations relating to
Hazardous Materials (“Hazardous 

  

 14 

	 	    	Materials Laws”), including, without limitation: the Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as
amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended (including the Superfund Amendments and Reauthorization Act of 1986, “CERCLA”), 42 U.S.C. Section 9601 et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the
Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C.
Section 801 et seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; and all comparable state and local laws, laws of other jurisdictions or orders and regulations. 

  

	 	c.	Notices. Mortgagor shall immediately notify Mortgagee in writing of: (i) the discovery of any Hazardous Materials on, under or about the Property (other than Hazardous
Materials permitted under Section 6.2a); (ii) any knowledge by Mortgagor that the Property does not comply with any Hazardous Materials Laws; (iii) any claims or actions (“Hazardous Materials Claims”) pending or threatened against
Mortgagor or the Property by any governmental entity or agency or any other person or entity relating to Hazardous Materials or pursuant to the Hazardous Materials Laws; and (iv) the discovery of any occurrence or condition on any real property
adjoining or in the vicinity of the Property that could cause the Property or any part thereof to become contaminated by or with Hazardous Materials. 

  

	 	d.	Remedial Action. In response to the presence of any Hazardous Materials on, under or about the Property, Mortgagor shall immediately take, at Mortgagor’s sole
expense, all remedial action required by any Hazardous Materials Laws or any judgment, consent decree, settlement or compromise in respect to any Hazardous Materials Claims. 

  

	 	e.	Inspection By Mortgagee. Upon reasonable prior notice to Mortgagor, Mortgagee, its employees and agents, may from time to time (whether before or after the
commencement of a nonjudicial or judicial foreclosure proceeding), enter and inspect the Property for the purpose of determining the existence, location, nature and magnitude of any past or present release or threatened release of any Hazardous
Materials into, onto, beneath or from the Property. 

  

	 	f.	Legal Effect of Section. Mortgagor and Mortgagee agree that: (i) this Hazardous Materials Section is intended as Mortgagee’s written request for information (and
Mortgagor’s response) concerning the environmental condition of the real property security as required by California Code of Civil Procedure Section 726.5, or any other applicable law; and (ii) each representation and warranty and covenant in
this Section (together with any indemnity applicable to a breach of any such representation and warranty) with respect to the environmental condition of the Property is intended by Mortgagee and Mortgagor to be an “environmental provision”
for purposes of California Code of Civil Procedure Section 736, or any other applicable law. 

  

	6.3	COMPLIANCE WITH LAWS. Mortgagor shall comply with all federal, state and local laws, rules and regulations applicable to the Property, including, without limitation,
all zoning and building requirements and all requirements of the Americans With Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), as amended from time to time. Mortgagor shall possess and maintain or cause Borrower to possess and maintain
in full force and effect at all times (a) all certificates of occupancy and other licenses, permits and authorizations required by applicable law for the existing use of the Property and (b) all permits, franchises and licenses and all rights to all
trademarks, trade names, patents and fictitious names, if any, required by applicable law for Mortgagor and Borrower to conduct the business(es) in which Mortgagor and Borrower are now engaged. 

  

	6.4	LITIGATION. Mortgagor shall promptly notify Mortgagee in writing of any litigation pending or threatened against Mortgagor or Borrower claiming damages in excess of
$50,000 and of all pending or threatened litigation against Mortgagor or Borrower if the aggregate damage claims against Mortgagor or Borrower exceed $100,000. 

  

 15 

	6.5	MERGER, CONSOLIDATION, TRANSFER OF ASSETS. Mortgagor shall not: (a) merge or consolidate with any other entity or permit Borrower to merge or consolidate with any
other entity; (b) make any substantial change in the nature of Mortgagor’s business or structure or permit Borrower to make any substantial change in the nature of Borrower’s business or structure (except as expressly provided herein); (c)
acquire all or substantially all of the assets of any other entity or permit Borrower to acquire all or substantially all of the assets of any other entity (other than Borrower’s acquisition of Sabal Pavilion I concurrently herewith); or (d)
sell, lease, assign, transfer or otherwise dispose of a material part of Mortgagor’s assets except in the ordinary course of Mortgagor’s business or permit Borrower to sell, lease, assign, transfer or otherwise dispose of a material part
of Borrower’s assets except in the ordinary course of Borrower’s business. 

  

	6.6	ACCOUNTING RECORDS. Mortgagor shall maintain and cause Borrower to maintain adequate books and records in accordance with the same accounting standard used by
Mortgagor or Borrower to prepare the financial statements delivered to and approved by Mortgagee in connection with the making of the Loan or other accounting standards approved by Mortgagee. Mortgagor shall permit and shall cause Borrower to permit
any representative of Mortgagee, at any reasonable time and from time to time, at Mortgagee’s sole cost and expense, to inspect, audit and examine such books and records and make copies of same; provided, however, that Mortgagee shall not be
obligated to pay for any expenses incurred by Borrower in connection with such inspection, audit or examination. 

  

	6.7	COSTS, EXPENSES AND ATTORNEYS’ FEES. Mortgagor shall pay to Mortgagee the full amount of all costs and expenses, including, without limitation, reasonable
attorneys’ fees and expenses of Mortgagee’s in–house or outside counsel, incurred by Mortgagee in connection with: (a) appraisals and inspections of the Property or Collateral required by Mortgagee as a result of (i) a Transfer or
proposed Transfer (as defined below), or (ii) a Default; (b) appraisals and inspections of the Property or Collateral required by applicable law, including, without limitation, federal or state regulatory reporting requirements; and (c) any acts
performed by Mortgagee at Mortgagor’s request or wholly or partially for the benefit of Mortgagor (including, without limitation, the preparation or review of amendments, assumptions, waivers, releases, reconveyances, estoppel certificates or
statements of amounts owing under any Secured Obligation). In connection with appraisals and inspections, Mortgagor specifically (but not by way of limitation) acknowledges that: (aa) a formal written appraisal of the Property by a state certified
or licensed appraiser may be required by federal regulatory reporting requirements on an annual or more frequent basis; and (bb) Mortgagee may require inspection of the Property by an independent supervising architect, a cost engineering specialist,
or both. Mortgagor shall pay all indebtedness arising under this Section immediately upon demand by Mortgagee together with interest thereon following notice of such indebtedness at the rate of interest then applicable to the principal balance of
the Note as specified therein. 

  

	6.8	LIENS, ENCUMBRANCES AND CHARGES. Mortgagor shall immediately discharge by bonding or otherwise any lien, charge or other encumbrance which attaches to the Property in
violation of Section 6.15. Subject to Mortgagor’s right to contest such matters under this Mortgage or as expressly permitted in the Loan Documents, Mortgagor shall pay when due all obligations secured by or reducible to liens and encumbrances
which shall now or hereafter encumber or appear to encumber all or any part of the Property or any interest therein, whether senior or subordinate hereto, including, without limitation, all claims for work or labor performed, or materials or
supplies furnished, in connection with any work of demolition, alteration, repair, improvement or construction of or upon the Property, except such as Mortgagor may in good faith contest or as to which a bona fide dispute may arise (provided
provision is made to the satisfaction of Mortgagee for eventual payment thereof in the event that Mortgagor is obligated to make such payment and that any recorded claim of lien, charge or other encumbrance against the Property is immediately
discharged by bonding or otherwise). 

  

	6.9	TAXES AND OTHER LIABILITIES. Mortgagor shall pay and discharge, prior to delinquency, any and all indebtedness, obligations, assessments and taxes, both real and
personal and including federal and state income 

  

 16 

	    	taxes and state and local property taxes and assessments. Mortgagor shall promptly provide to Mortgagee copies of all tax and assessment notices pertaining to the Property.
Mortgagor hereby authorizes Mortgagee to obtain, at Mortgagor’s expense, a tax service contract which shall provide tax information on the Property to Mortgagee for the term of the Loan and any extensions or renewals of the Loan.

  

	6.10	INSURANCE COVERAGE. Mortgagor shall obtain and maintain all insurance coverage required pursuant to that certain Agreement Regarding Required Insurance dated as of the
date hereof by and between Mortgagor and Mortgagee. 

  

	6.11	CONDEMNATION AND INSURANCE PROCEEDS. 

  

	 	a.	Assignment of Claims. Mortgagor absolutely and irrevocably assigns to Mortgagee all of the following rights, claims and amounts (collectively, “Claims”), all
of which shall be paid to Mortgagee: (i) all awards of damages and all other compensation payable directly or indirectly by reason of a condemnation or proposed condemnation for public or private use affecting all or any part of, or any interest in,
the Property; (ii) all other claims and awards for damages to or decrease in value of all or any part of, or any interest in, the Proper­ty; (iii) all proceeds of any insurance policies payable by reason of loss sustained to all or any part of
the Property; and (iv) all interest which may accrue on any of the foregoing. Mortgagor shall give Mortgagee prompt written notice of the occurrence of any casualty affecting, or the institution of any proceedings for eminent domain or for the
condemnation of, the Property or any portion thereof. So long as no Default has occurred and is continuing at the time, (i) Mortgagor shall have the right to adjust, compromise and settle any Claim or group of related Claims of $100,000 or less
without the participation or consent of Mortgagee and (ii) Mortgagee shall have the right to participate in and consent to any adjustment, compromise or settlement of any Claim or group of related Claims exceeding $100,000. If a Default has occurred
and is continuing at the time, Mortgagor hereby irrevocably empowers Mortgagee, in the name of Mortgagor, as Mortgagor’s true and lawful attorney in fact, to commence, appear in, defend, prosecute, adjust, compromise and settle all Claims;
provided, however, Mortgagee shall not be responsible for any failure to undertake any or all of such actions regardless of the cause of the failure. All awards, proceeds and other sums described herein shall, in all cases, be payable to Mortgagee.

  

	 	b.	Application of Proceeds; No Default. So long as no Default has occurred and is continuing at the time of Mortgagee’s receipt of the proceeds of the Claims
(“Proceeds”) and no Default occurs thereafter, the following provisions shall apply: 

  

	 	(i)	Condemnation. If the Proceeds are the result of Claims described in clauses 6.11.a (i) or (ii) above, or interest accrued thereon, Mortgagee shall apply the Proceeds in the
following order of priority: First, to Mortgagee’s expenses in settling, prosecuting or defending the Claims; Second, to the repair or restoration of the portion of the Property, if any, not condemned or proposed for condemnation and not
otherwise the subject of a claim or award; and Third, to the Secured Obligations in any order without suspending, extending or reducing any obligation of Mortgagor to make installment payments. 

  

	 	(ii)	Insurance. If the Proceeds are the result of Claims described in clause 6.11.a (iii) above or interest accrued thereon, Mortgagee shall apply the Proceeds in the following
order of priority: First, to Mortgagee’s expenses in settling, prosecuting or defending the Claims; Second, to the repair or restoration of the Property; and Third, (aa) if the repair or restoration of the Property has been completed and all
costs incurred in connection with the repair or restoration have been paid in full, to Mortgagor or (bb) in all other circumstances, to the Secured Obligations in any order without suspending, extending or reducing any obligation of Mortgagor to
make installment payments. 

  

 17 

	 	(iii)	Restoration. Notwithstanding the foregoing Sections 6.11.b (i) and (ii), Mortgagee shall have no obligation to make any Proceeds available for the repair or restoration of
all or any portion of the Property unless and until all the following conditions have been satisfied: (aa) delivery to Mortgagee of the Proceeds plus any additional amount which is needed to pay all costs of the repair or restoration (including,
without limitation, taxes, financing charges, insurance and rent during the repair period); (bb) establishment of an arrangement for lien releases and disbursement of funds acceptable to Mortgagee; (cc) delivery to Mortgagee in form and content
acceptable to Mortgagee of all of the following: (1) plans and specifications for the work; (2) a contract for the work, signed by a contractor acceptable to Mortgagee; (3) a cost breakdown for the work; (4) if required by Mortgagee, a payment and
performance bond for the work; (5) evidence of the continuation of all Leases unless consented to in writing by Mortgagee; (6) evidence that, upon completion of the work, the size, capacity, value, and income coverage ratios for the Property will be
at least as great as those which existed immediately before the damage or condemnation occurred; (7) evidence that the work can reasonably be completed on or before that date which is 6 months prior to the Maturity Date; and (8) evidence of the
satisfaction of any additional conditions that Mortgagee may reasonably establish to protect Mortgagee’s security. Mortgagor acknowledges that the specific conditions described above are reasonable. 

  

	 	c.	Application of Proceeds; Default. If a Default has occurred and is continuing at the time of Mortgagee’s receipt of the Proceeds or if a Default occurs at any
time thereafter, Mortgagee may, at Mortgagee’s absolute discretion and regardless of any impairment of security or lack of impairment of security, but subject to applicable law governing use of the Proceeds, if any, apply all or any of the
Proceeds to Mortgagee’s expenses in settling, prosecuting or defending the Claims and then apply the balance to the Secured Obligations in any order without suspending, extending or reducing any obligation of Mortgagor to make installment
payments, and may release all or any part of the Proceeds to Mortgagor upon any conditions Mortgagee chooses. 

  

	6.12	IMPOUNDS. 

  

	 	a.	Post-Default Impounds. If required by Mortgagee at any time while a Default exists, Mortgagor shall deposit with Mortgagee such amounts (“Post-Default
Impounds”) on such dates (determined by Mortgagee as provided below) as will be sufficient to pay any or all “Costs” (as defined below) specified by Mortgagee to the extent, and only to the extent, required by the terms and conditions
of the Loan Documents. Mortgagee in its reasonable discretion shall estimate the amount of such Costs, if any, that will be payable or required during any period selected by Mortgagee not exceeding 1 year and shall determine the fractional portion
thereof that Mortgagor shall deposit with Mortgagee on each date specified by Mortgagee during such period. If the Post-Default Impounds paid by Mortgagor are not sufficient to pay the related Costs, Mortgagor shall deposit with Mortgagee upon
demand an amount equal to the deficiency. All Post-Default Impounds shall be payable by Mortgagor in addition to (but without duplication of) any other Impounds (as defined below). 

  

	 	b.	All Impounds. Post-Default Impounds and any other impounds that may be payable by Borrower under the Note are collectively called “Impounds”. All Impounds,
if any, shall be deposited into one or more segregated or commingled accounts maintained by Mortgagee or its servicing agent. Except as otherwise provided in the Note, such account(s) shall not bear interest. Mortgagee shall not be a trustee,
special depository or other fiduciary for Mortgagor with respect to such account, and the existence of such account shall not limit Mortgagee’s rights under this Mortgage, any other agreement or any provision of law. If a Default exists,
Mortgagee may apply any or all Impounds to any Secured Obligation and/or to cure such Default, whereupon Mortgagor shall restore all Impounds so applied and cure all Defaults not cured by such application. The obligations of Mortgagor hereunder
shall not be diminished by deposits of Impounds made by Mortgagor, except to the extent that such obligations have actually been met by application of such Impounds. Upon any assignment of this Mortgage, Mortgagee may assign all

  

 18 

	 	    	Impounds in its possession to Mortgagee’s assignee, whereupon Mortgagee shall be released from all liability with respect to such Impounds. Within 60 days following full
repayment of the Secured Obligations (other than as a consequence of foreclosure or conveyance in lieu of foreclosure) or at such earlier time as Mortgagee may elect, Mortgagee shall pay to Mortgagor all Impounds in its possession, and no other
party shall have any right or claim thereto. “Costs” means (i) all taxes and other liabilities payable by Mortgagor under Section 6.9, (ii) all insurance premiums payable by Mortgagor under Section 6.10, and (iii) all other costs and
expenses for which Impounds are required under the Note. Mortgagor shall deliver to Mortgagee, promptly upon receipt, all bills for Costs for which Mortgagee has required Post-Default Impounds. 

  

	6.13	DEFENSE AND NOTICE OF LOSSES, CLAIMS AND ACTIONS. Mortgagor shall protect, preserve and defend the Property and title to and right of possession of the Property, the
security of this Mortgage and the rights and powers of Mortgagee hereunder at Mortgagor’s sole expense against all adverse claims, whether the claim: (a) is against a possessory or non-possessory interest; (b) arose prior or subsequent to the
Effective Date; or (c) is senior or junior to Mortgagor’s or Mortgagee’s rights. Mortgagor shall give Mortgagee prompt notice in writing of the assertion of any claim, of the filing of any action or proceeding, of the occurrence of any
damage to the Property and of any condemnation offer or action. 

  

	6.14	RIGHT OF INSPECTION. Mortgagee and its independent contractors, agents and employees may enter the Property from time to time at any reasonable time for the purpose of
inspecting the Property and ascertaining Mortgagor’s compliance with the terms of this Mortgage. Mortgagee shall use reasonable efforts to assure that Mortgagee’s entry upon and inspection of the Property shall not materially and
unreasonably interfere with the business or operations of Mortgagor or Mortgagor’s tenants on the Property. 

  

	6.15	DUE ON SALE/ENCUMBRANCE. 

  

	 	a.	Definitions. The following terms shall have the meanings indicated: 

  

	 	    	“Restricted Party” shall mean each of (i) Borrower, (ii) Mortgagor, (iii) KBS REIT Acquisition II, LLC (“Mezzanine Borrower”), any entity obligated under
any guaranty or indemnity made in favor of Mortgagee in connection with the Loan. 

  

	 	    	“Transfer” shall mean any sale, installment sale, exchange, mortgage, pledge, hypothecation, assignment, encumbrance or other transfer, conveyance or disposition,
whether voluntarily, involuntarily or by operation of law or otherwise. 

  

	 	b.	Property Transfers. 

  

	 	(i)	Prohibited Property Transfers. Mortgagor shall not cause or permit any Transfer of all or any part of or any direct or indirect legal or beneficial interest in the Property
or the Collateral (collectively, a “Prohibited Property Transfer”), including, without limitation, (A) a Lease of all or a material part of the Property for any purpose other than actual occupancy by a space tenant; and (B) the Transfer of
all or any part of Mortgagor’s right, title and interest in and to any Leases or Payments. 

  

	 	(ii)	Permitted Property Transfers. Notwithstanding the foregoing, none of the following Transfers shall be deemed to be a Prohibited Property Transfer and are expressly permitted:
(A) a Transfer which is expressly permitted under the Note; (B) a Lease which is permitted under Article 3; and (C) the sale of inventory in the ordinary course of business. 

  

 19 

	 	c.	Equity Transfers. 

  

	 	(i)	Prohibited Equity Transfers. Mortgagor shall not cause or permit any Transfer of any direct, legal or beneficial interest in a Restricted Party (collectively, a
“Prohibited Equity Transfer”), including without limitation, (A) if a Restricted Party is a corporation, any merger, consolidation or other Transfer of such corporation’s stock or the creation or issuance of new stock in one or a
series of transactions; (B) if a Restricted Party is a limited partnership, limited liability partnership, general partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the
Transfer of the partnership interest of any general or limited partner or any profits or proceeds relating to such partnership interests or the creation or issuance of new limited partnership interests; (C) if a Restricted Party is a limited
liability company, any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member manager (or if no managing member, any member) or any profits or proceeds relating to such membership interest, or the
Transfer of a non-managing membership interest or the creation or issuance of new non-managing membership interests; or (D) if a Restricted Party is a trust, any merger, consolidation or other Transfer of any legal or beneficial interest in such
Restricted Party or the creation or issuance of new legal or beneficial interests. 

  

	 	(ii)	Permitted Equity Transfers. Notwithstanding the foregoing, none of the following Transfers shall be deemed to be a Prohibited Equity Transfer: (A) a Transfer of the direct or
indirect ownership interests of KBS Limited Partnership and KBS Real Estate Investment Trust, Inc., so long as: (i) KBS Capital Advisors LLC, (ii) an entity owned by Peter and/or Charles Schreiber, Jr., or (iii) an entity reasonably acceptable to
Lender using commercial standards customarily applied by prudent institutional mortgage lenders for similar loans (each an “Approved Asset Manager”) remains the sole Approved Asset Manager of KBS Real Estate Investment Trust, Inc.; (B) a
Transfer by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted Party where such Transfer does not result in a Default under Section 7.1a(vi) below; (C) a Transfer, in one or a series of
transactions, of not more than 49% of the stock, limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party where such Transfer does not result in a change in management control in the Restricted
Party; or (D) a Transfer which is expressly permitted under the Note. 

  

	 	(iii)	SPE Status. Nothing contained in this Section 6.15c shall be construed to permit any Transfer which would result in a breach of any representation, warranty or
covenant of Mortgagor under Section 5.2 above. 

  

	 	d.	Certificates of Ownership. Mortgagor shall deliver to Mortgagee, at any time and from time to time, not more than 5 days after Mortgagee’s written request
therefore, a certificate, in form acceptable to Mortgagee, signed and dated by Borrower and Mortgagor, listing the names of all persons and entities holding direct interests in the Property and KBS REIT Acquisition II, LLC, a Delaware limited
liability company, and the type and amount of each such interest. 

  

	6.16	INTENTIONALLY OMITTED. 

  

	6.17	INTENTIONALLY OMITTED. 

  

	6.18	EXCULPATION. Mortgagee shall not directly or indirectly be liable to Mortgagor or any other person as a consequence of: (a) the exercise of the rights, remedies or
powers granted to Mortgagee in this Mortgage; (b) the failure or refusal of Mortgagee to perform or discharge any obligation or liability of Mortgagor under any agreement related to the Property or under this Mortgage; or (c) any loss sustained by
Mortgagor or any third party resulting from Mortgagee’s failure to lease the Property after a Default (hereafter defined) or from 

  

 20 

	    	any other act or omission of Mortgagee in managing the Property after a Default unless the loss is caused by the willful misconduct and bad faith of Mortgagee and no such liability
shall be asserted or enforced against Mortgagee, all such liability being expressly waived and released by Mortgagor. 

  

	6.19	INDEMNITY. Without in any way limiting any other indemnity contained in this Mortgage, Mortgagor agrees to defend, indemnify and hold harmless the Mortgagee Group from
and against any claim, loss, damage, cost, expense or liability directly or indirectly arising out of: (a) the making of the Loan, except for violations of banking laws or regulations by the Mortgagee Group; (b) this Mortgage; (c) the execution of
this trust or the performance of any act required or permitted hereunder or by law; (d) any failure of Mortgagor to perform Mortgagor’s obligations under this Mortgage or the other Loan Documents; (e) any alleged obligation or undertaking on
the Mortgagee Group’s part to perform or discharge any of the representations, warranties, conditions, covenants or other obligations contained in any other document related to the Property; (f) any act or omission by Mortgagor or any
contractor, agent, employee or representative of Mortgagor with respect to the Property; or (g) any claim, loss, damage, cost, expense or liability directly or indirectly arising out of: (i) the use, generation, manufacture, storage, treatment,
release, threatened release, discharge, disposal, transportation or presence of any Hazardous Materials which are found in, on, under or about the Property (including, without limitation, underground contamination); or (ii) the breach of any
covenant, representation or warranty of Mortgagor under Sections 5.1.p, 5.1.q, 5.1.r, or 6.2 above. The foregoing to the contrary notwithstanding, this indemnity shall not include any claim, loss, damage, cost, expense or liability directly or
indirectly arising out of the gross negligence or willful misconduct of any member of the Mortgagee Group, or any claim, loss, damage, cost, expense or liability incurred by the Mortgagee Group arising from any act or incident on the Property
occurring after the full reconveyance and release of the lien of this Mortgage on the Property, or with respect to the matters set forth in clause (g) above, any claim, loss, damage, cost, expense or liability incurred by the Mortgagee Group
resulting from the introduction and initial release of Hazardous Materials on the Property occurring after the transfer of title to the Property at a foreclosure sale under this Mortgage, either pursuant to judicial decree or the power of sale, or
by deed in lieu of such foreclosure. This indemnity shall include, without limitation: (aa) all consequential damages (including, without limitation, any third party tort claims or governmental claims, fines or penalties against the Mortgagee
Group); (bb) all court costs and reasonable attorneys’ fees (including, without limitation, expert witness fees) paid or incurred by the Mortgagee Group; and (cc) the costs, whether foreseeable or unforeseeable, of any investigation, repair,
cleanup or detoxification of the Property which is required by any governmental entity or is otherwise necessary to render the Property in compliance with all laws and regulations pertaining to Hazardous Materials. “Mortgagee Group”, as
used herein, shall mean (1) Mortgagee and Lender (including, without limitation, any participant in the Loan), (2) any entity controlling, controlled by or under common control with Mortgagee and Lender, (3) the directors, officers, employees and
agents of Mortgagee and Lender and such other entities, and (4) the successors, heirs and assigns of the entities and persons described in foregoing clauses (1) through (3), other than a purchaser of the Loan through foreclosure. Mortgagor shall pay
immediately upon Mortgagee’s demand any amounts owing under this indemnity together with interest from the date the indebtedness arises until paid at the rate of interest applicable to the principal balance of the Note as specified therein.
Mortgagor agrees to use legal counsel reasonably acceptable to the Mortgagee Group in any action or proceeding arising under this indemnity. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE SATISFACTION AND RELEASE OF THIS MORTGAGE, BUT
MORTGAGOR’S LIABILITY UNDER THIS INDEMNITY SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 8 IN THE NOTE ENTITLED “BORROWER’S LIABILITY.” 

  

	6.20	INTENTIONALLY OMITTED. 

  

	6.21	RELEASES, EXTENSIONS, MODIFICATIONS AND ADDITIONAL SECURITY. Without notice to or the consent, approval or agreement of any persons or entities having any interest at
any time in the Property or in any manner obligated under the Secured Obligations (“Interested Parties”), Mortgagee may, from time to time: (a) fully or partially release any person or entity from liability for the payment or performance
of any Secured Obligation; (b) extend the maturity of any Secured Obligation; (c) make any agreement with Borrower increasing the amount or otherwise altering the terms of any Secured Obligation; (d) accept additional security for any Secured
Obligation; or (e) release all or any portion of the Property, Collateral and other security for any Secured Obligation. None of the foregoing actions shall release or reduce the personal liability of any of said Interested Parties, or release or
impair the priority of the lien of this Mortgage upon the Property. 

  

 21 

	6.22	SALE OR PARTICIPATION OF LOAN. Mortgagee may at any time sell, assign, participate or securitize all or any portion of Mortgagee’s rights and obligations under
the Loan Documents, and that any such sale, assignment, participation or securitization may be to one or more financial institutions or other entities, to private investors, or into the public securities market, in Mortgagee’s sole discretion.
Mortgagor further agrees that Mortgagee may disseminate to any such actual or potential purchaser(s), assignee(s) or participant(s) (and to any investment banking firms, rating agencies, accounting firms, law firms and other third party advisory
firms and investors involved with the Loan and the Loan Documents or the applicable sale, assignment, participation or securitization) all documents and financial and other information heretofore or hereafter provided to or known to Mortgagee with
respect to: (a) the Property and its operation; (b) any party connected with the Loan (including, without limitation, Mortgagor, any partner or member of Mortgagor, any constituent partner or member of Mortgagor, any guarantor and any nonborrower
mortgagor). In the event of any such sale, assignment, participation or securitization, Mortgagee and the other parties to the same shall share in the rights and obligations of Mortgagee set forth in the Loan Documents as and to the extent they
shall agree among themselves. In connection with any such sale, assignment, participation or securitization, Mortgagor further agrees that the Loan Documents shall be sufficient evidence of the obligations of Mortgagor to each purchaser, assignee or
participant, and Mortgagor shall, within 15 days after request by Mortgagee; (c) deliver to Mortgagee such information and documents relating to Mortgagor, the Property and its operation and any party connected with the Loan as Mortgagee or any
rating agency may request; (d) deliver to Mortgagee an estoppel certificate for the benefit of Mortgagee and any other party designated by Mortgagee verifying the status and terms of the Loan, in form and content satisfactory to Mortgagee; (e) enter
into such amendments to the Loan Documents as may be requested in order to facilitate any such sale, assignment, participation or securitization without impairing Mortgagor’s rights, increasing Mortgagor’s obligations or liabilities, or
causing Mortgagor to incur any material expesnse; and (f) if, as a condition to the closing of the Loan, Mortgagor was required to be a special-purpose bankruptcy-remote entity, enter into such amendments to the organizational documents of Mortgagor
as any rating agency may request to preserve or enhance Mortgagor’s special-purpose bankruptcy-remote status. The indemnity obligations of Mortgagor under the Loan Documents shall also apply with respect to any purchaser, assignee or
participant. 

  

	6.23	RELEASE. Upon payment in full of the Secured Obligations, and satisfaction of all of the covenants, warranties, undertakings and agreements made in this Mortgage and
in the other Loan Documents (including, without limitation, repayment in full of all principal, interest and other amounts owing under the Note) are kept and performed, and all obligations, if any, of Mortgagee for further advances have been
terminated, then, and in that event only, Mortgagee shall release, without warranty, the Property or that portion thereof then held hereunder. The recitals of any matters or facts in any release executed hereunder shall be conclusive proof of the
truthfulness thereof. To the extent permitted by law, the release may describe the grantee as “the person or persons legally entitled thereto”. Mortgagee shall have no duty to determine the rights of persons claiming to be rightful
grantees of any release. When the Property has been fully released, the last such release shall operate as a reassignment of all future rents, issues and profits of the Property to the person or persons legally entitled thereto.

  

	6.24	SUBROGATION. Mortgagee shall be subrogated to the lien of all encumbrances, whether released of record or not, paid in whole or in part by Mortgagee pursuant to this
Mortgage or by the proceeds of any loan secured by this Mortgage. 

 ARTICLE 7. DEFAULT 
  

	7.1	DEFAULT. For all purposes hereof, “Default” shall mean either an “Optional Default” (as defined below) or an “Automatic Default” (as
defined below). 

  

 22 

	 	a.	Optional Default. An “Optional Default” shall occur, at Mortgagee’s option, upon the occurrence of any of the following events:

  

	 	(i)	Monetary. Borrower or Mortgagor shall fail to (aa) pay when due any sums which by their express terms require immediate payment without any grace period or sums which are
payable on the Maturity Date, or (bb) pay within 5 days when due any other sums payable under the Note, this Mortgage or any of the other Loan Documents, including without limitation, any monthly payment due under the Note. 

 

	 	(ii)	Failure to Perform. Borrower or Mortgagor shall fail to observe, perform or discharge any of Borrower’s or Mortgagor’s obligations, covenants, conditions or
agreements, other than Borrower’s or Mortgagor’s payment obligations, under the Note, this Mortgage or any of the other Loan Documents, and (aa) such failure shall remain uncured for 30 days after written notice thereof shall have been
given to Borrower or Mortgagor, as the case may be, by Mortgagee or (bb) if such failure is of such a nature that it cannot be cured within such 30 day period, Borrower or Mortgagor shall fail to commence to cure such failure within such 30 day
period or shall fail to diligently prosecute such curative action thereafter. 

  

	 	(iii)	Representations and Warranties. Any representation, warranty, certificate or other statement (financial or otherwise) made or furnished by or on behalf of Borrower,
Mortgagor, or a guarantor, if any, to Mortgagee or in connection with any of the Loan Documents, or as an inducement to Mortgagee to make the Loan, shall be false, incorrect, incomplete or misleading in any material respect when made or furnished
and shall cause a Material Adverse Effect (as hereinafter defined). 

  

	 	(iv)	Condemnation; Attachment. The condemnation, seizure or appropriation of any material portion (as reasonably determined by Mortgagee) of the Property; or the sequestration or
attachment of, or levy or execution upon any of the Property, the Collateral or any other collateral provided by Borrower or Mortgagor under any of the Loan Documents, or any material portion of the other assets of Borrower or Mortgagor, which
sequestration, attachment, levy or execution is not released or dismissed within 60 days after its occurrence; or the sale of any assets affected by any of the foregoing. 

  

	 	(v)	Uninsured Casualty. The occurrence of an uninsured casualty with respect to any material portion (as reasonably determined by Mortgagee) of the Property unless: (aa) no other
Default has occurred and is continuing at the time of such casualty or occurs thereafter; (bb) Mortgagor promptly notifies Mortgagee of the occurrence of such casualty; and (cc) not more than 45 days after the occurrence of such casualty, Mortgagor
delivers to Mortgagee immediately available funds in an amount sufficient, in Mortgagee’s reasonable opinion, to pay all costs of the repair or restoration (including, without limitation, taxes, financing charges, insurance and rent during the
repair period). So long as no Default has occurred and is continuing at the time of Mortgagee’s receipt of such funds and no Default occurs thereafter, Mortgagee shall make such funds available for the repair or restoration of the Property.
Notwithstanding the foregoing, Mortgagee shall have no obligation to make any funds available for repair or restoration of the Property unless and until all the conditions set forth in clauses (bb) and (cc) of Section 1.31b(iii) of this Mortgage
have been satisfied. Mortgagor acknowledges that the specific conditions described above are reasonable. 

  

	 	(vi)	Key Person or Entity. The retirement, death, incapacity or material reduction in current management authority or duties, if any, of both Peter Bren and Charles J. Schreiber,
Jr., and Mortgagor’s failure to provide a substitute or replacement acceptable to Mortgagee within 60 days after the occurrence of any such event. 

  

 23 

	 	    	For the purposes of this Section 7.1(a), the term “Material Adverse Effect” shall mean the occurrence or existence of a condition or event which would have a material
adverse effect on (i) the business, profits, operations or financial condition of Borrower, (ii) the ability of Borrower to pay any amounts under the Loan Documents as they become due, or (iii) the value of the Property. 

  

	 	b.	Automatic Default. An “Automatic Default” shall occur automatically upon the occurrence of any of the following events: 

  

	 	(i)	Voluntary Bankruptcy, Insolvency, Dissolution. (aa) Borrower’s filing a petition for relief under the Bankruptcy Reform Act of 1978, as amended or recodified
(“Bankruptcy Code”), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, “Debtor Relief Law”); or (bb) Borrower’s filing any pleading in
any involuntary proceeding under the Bankruptcy Code or other Debtor Relief Law which admits the jurisdiction of a court to regulate Borrower or the Property or the petition’s material allegations regarding Borrower’s insolvency; or (cc)
Borrower’s making a general assignment for the benefit of creditors; or (dd) Borrower’s applying for, or the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (ee) the filing by or against
Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate or dissolve Borrower. 

  

	 	(ii)	Involuntary Bankruptcy. Borrower’s failure to effect a full dismissal of any involuntary petition under the Bankruptcy Code or other Debtor Relief Law that is filed
against Borrower or in any way restrains or limits Borrower or Mortgagee regarding the Loan or the Property, prior to the earlier of the entry of any order granting relief sought in the involuntary petition or 60 days after the date of filing of the
petition. 

  

	 	(iii)	Partners, Guarantors. The occurrence of an event specified in Sections (i) or (ii) as to Mortgagor, any general partner or managing member of Borrower or Mortgagor, or any
guarantor or other person or entity in any manner obligated to Mortgagee under the Loan Documents. 

  

	7.2	ACCELERATION. Upon the occurrence of an Optional Default, Mortgagee may, at its option, declare all sums owing to Mortgagee under the Note and the other Loan Documents
immediately due and payable. Upon the occurrence of an Automatic Default, all sums owing to Mortgagee under the Note and the other Loan Documents shall automatically become immediately due and payable. 

  

	7.3	RIGHTS AND REMEDIES. In addition to the rights and remedies in Section 1.46 above, at any time after a Default, Mortgagee shall have all of the following rights and
remedies: 

  

	 	a.	Entry on Property. With or without notice, and without releasing Mortgagor from any Secured Obligation, and without becoming a mortgagee in possession, to enter upon
the Property from time to time and to do such acts and things as Mortgagee deems necessary or desirable in order to inspect, investigate, assess and protect the security hereof or to cure any Default, including, without limitation: (i) to take and
possess all documents, books, records, papers and accounts of Mortgagor, Borrower or the then owner of the Property which relate to the Property; (ii) to make, terminate, enforce or modify leases of the Property upon such terms and conditions as
Mortgagee deems proper; (iii) to make repairs, alterations and improvements to the Property necessary, in Mortgagee’s sole judgment, to protect or enhance the security hereof; (iv) to appear in and defend any action or proceeding purporting to
affect the security hereof or the rights or powers of Mortgagee hereunder; (v) to pay, purchase, contest or compromise any encumbrance, charge, lien or claim of lien which, in the sole judgment of Mortgagee, is or may be senior in priority hereto,
the judgment of Mortgagee being 

  

 24 

	 	    	conclusive as between the parties hereto; (vi) to obtain insurance; (vii) to pay any premiums or charges with respect to insurance required to be carried hereunder or under any
other Loan Document; (viii) to obtain a court order to enforce Mortgagee’s right to enter and inspect the Property for Hazardous Materials, in which regard the decision of Mortgagee as to whether there exists a release or threatened release of
Hazardous Materials onto the Property shall be deemed reasonable and conclusive as between the parties hereto; (ix) to have a receiver appointed pursuant to applicable law to enforce Mortgagee’s rights to enter and inspect the Property for
Hazardous Materials; and/or (x) to employ legal counsel, accountants, engineers, consultants, contractors and other appropriate persons to assist them; 

  

	 	b.	Appointment of Receiver. With or without notice or hearing, to apply to a court of competent jurisdiction for and obtain appointment of a receiver, trustee, liquidator
or conservator of the Property, for any purpose, including, without limitation, to enforce Mortgagee’s right to collect Payments and to enter on and inspect the Property for Hazardous Materials, as a matter of strict right and without regard
to: (i) the adequacy of the security for the repayment of the Secured Obligations; (ii) the existence of a declaration that the Secured Obligations are immediately due and payable; (iii) the filing of a notice of default; or (iv) the solvency of
Mortgagor, Borrower or any guarantor or other person or entity in any manner obligated to Mortgagee under the Loan Documents; 

  

	 	c.	Injunction. To commence and maintain an action or actions in any court of competent jurisdiction to obtain specific enforcement of the covenants of Mortgagor
hereunder, and Mortgagor agrees that such covenants shall be specifically enforceable by injunction or any other appropriate equitable remedy and that for the purposes of any suit brought under this subparagraph, Mortgagor waives the defense of
laches and any applicable statute of limitations; 

  

	 	d.	Foreclosure. Immediately commence an action to foreclose this Mortgage or to specifically enforce its provisions or any of the indebtedness secured hereby pursuant to
the statutes in such case made and provided and sell the Property or cause the Property to be sold in accordance with the requirements and procedures provided by said statutes in a single parcel or in several parcels at the option of Mortgagee.

  

	 	(i)	In the event foreclosure proceedings are filed by Mortgagee, all expenses incident to such proceeding, including, but not limited to, reasonable attorneys’ fees and costs,
shall be paid by Mortgagor and secured by this Mortgage and by all of the other Loan Documents securing all or any part of the indebtedness evidenced by the Note. The secured indebtedness and all other obligations secured by this Mortgage,
including, without limitation, interest at the Default Rate (as defined in the Note), any prepayment charge, fee or premium required to be paid under the Note in order to prepay principal (to the extent permitted by applicable law), reasonable
attorneys’ fees and any other amounts due and unpaid to Mortgagee under the Loan Documents, may be bid by Mortgagee in the event of a foreclosure sale hereunder. In the event of a judicial sale pursuant to a foreclosure decree, it is understood
and agreed that Mortgagee or its assigns may become the purchaser of the Property or any part thereof. 

  

	 	(ii)	Mortgagee may, by following the procedures and satisfying the requirements prescribed by applicable law, foreclose on only a portion of the Property and, in such event, said
foreclosure shall not affect the lien of this Mortgage on the remaining portion of the Property foreclosed. 

  

	 	    	Upon sale of the Property at any foreclosure, Mortgagee may credit bid (as determined by Mortgagee in its sole and absolute discretion) all or any portion of the Secured
Obligations. In determining such credit bid, Mortgagee may, but is not obligated to, take into account all or any of the following: (i) appraisals of the Property as such appraisals may be discounted or adjusted by Mortgagee in its sole and absolute
underwriting discretion; (ii) expenses and costs incurred by Mortgagee with respect to the Property prior to foreclosure; (iii) expenses and costs which Mortgagee anticipates will be incurred with respect to the 

  

 25 

 Property after foreclosure, but prior to resale, including, without limitation, costs of structural
reports and other due diligence, costs to carry the Property prior to resale, costs of resale (e.g. commissions, attorneys’ fees, and taxes), costs of any Hazardous Materials clean-up and monitoring, costs of deferred maintenance, repair,
refurbishment and retrofit, costs of defending or settling litigation affecting the Property, and lost opportunity costs (if any), including the time value of money during any anticipated holding period by Mortgagee; (iv) declining trends in real
property values generally and with respect to properties similar to the Property; (v) anticipated discounts upon resale of the Property as a distressed or foreclosed property; (vi) the fact of additional collateral (if any), for the Secured
Obligations; and (vii) such other factors or matters that Mortgagee (in its sole and absolute discretion) deems appropriate. In regard to the above, Mortgagor acknowledges and agrees that: (viii) Mortgagee is not required to use any or all of
the foregoing factors to determine the amount of its credit bid; (ix) this paragraph does not impose upon Mortgagee any additional obligations that are not imposed by law at the time the credit bid is made; (x) the amount of Mortgagee’s credit
bid need not have any relation to any loan-to-value ratios specified in the Loan Documents or previously discussed between Mortgagor and Mortgagee; and (xi) Mortgagee’s credit bid may be (at Mortgagee’s sole and absolute discretion) higher
or lower than any appraised value of the Property; 
  

	 	e.	Multiple Foreclosures. To resort to and realize upon the security hereunder and any other security now or later held by Mortgagee concurrently or successively and in
one or several consolidated or independent judicial actions and to apply the proceeds received upon the Secured Obligations all in such order and manner as Mortgagee determines in its sole discretion; 

  

	 	f.	Rights to Collateral. To exercise all rights Mortgagee may have with respect to the Collateral under this Mortgage, the UCC or otherwise at law; and

  

	 	g.	Other Rights. To exercise such other rights as Mortgagee may have at law or in equity or pursuant to the terms and conditions of this Mortgage or any of the other Loan
Documents. 

 In connection with any sale or sales hereunder, Mortgagee may elect to treat any of the Property which consists of
a right in action or which is property that can be severed from the Property (including, without limitation, any improvements forming a part thereof) without causing structural damage thereto as if the same were personal property or a fixture, as
the case may be, and dispose of the same in accordance with applicable law, separate and apart from the sale of the Property. Any sale of Collateral hereunder shall be conducted in any manner permitted by the UCC. 
  

	7.4	Application of Foreclosure Sale Proceeds. To the fullest extent permitted by law, proceeds of any sale under this Mortgage shall be applied to the extent funds are so
available to the following items in such order as Mortgagee in its discretion may determine: 

  

	 	a.	To payment of the costs, expenses and fees of taking possession of the Property, and of holding, operating, maintaining, using, leasing, repairing, improving, marketing and selling
the same and of otherwise enforcing Mortgagee’s right and remedies hereunder and under the other Loan Documents, including, but not limited to, receivers’ fees, court costs, reasonable attorneys’, accountants’, appraisers’,
managers’, and other professional fees, title charges and transfer taxes. 

  

	 	b.	To payment of all sums expended by Mortgagee under the terms of any of the Loan Documents and not yet repaid, together with interest on such sums at the Default Rate.

  

	 	c.	To payment of the secured indebtedness and all other obligations secured by this Mortgage, including, without limitation, interest at the Default Rate and, to the extent permitted
by applicable law, any prepayment fee, charge or premium required to be paid under the Note in order to prepay principal, in any order that Mortgagee chooses in its sole discretion. 

  

 26 

	7.5	WAIVER OF MARSHALING RIGHTS. Mortgagor, for itself and for all parties claiming through or under Mortgagor, and for all parties who may acquire a lien on or interest
in the Property, hereby waives all rights to have the Property and/or any other property, including, without limitation, the Collateral, which is now or later may be security for any Secured Obligation, marshaled upon any foreclosure of this
Mortgage or on a foreclosure of any other security for any of the Secured Obligations. 

  

	7.6	NO CURE OR WAIVER. Neither Mortgagee’s nor any receiver’s entry upon and taking possession of all or any part of the Property, nor any collection of rents,
issues, profits, insurance proceeds, condemnation proceeds or damages, other security or proceeds of other securi­ty, or other sums, nor the application of any collected sum to any Secured Obligation, nor the exercise of any other right or
remedy by Mortgagee or any receiver shall cure or waive any Default or notice of default under this Mortgage, or nullify the effect of any notice of default or sale (unless all Secured Obligations then due have been paid or performed and Mortgagor
has cured all other Defaults hereunder), or impair the status of the security, or prejudice Mortgagee in the exercise of any right or remedy, or be construed as an affirmation by Mortgagee of any tenancy, lease or option or a subordination of the
lien of this Mortgage. 

  

	7.7	PAYMENT OF COSTS, EXPENSES AND ATTORNEYS’ FEES. Mortgagor agrees to pay to Mortgagee immediately and upon demand all costs and expenses incurred by Mortgagee in
the enforcement of the terms and conditions of this Mortgage (including, without limitation, court costs and attorneys’ fees, whether incurred in litigation or not) with interest from the date of expenditure until said sums have been paid at
the rate of interest applicable to the principal balance of the Note as specified therein. 

  

	7.8	POWER TO FILE NOTICES AND CURE DEFAULTS. Mortgagor hereby irrevocably appoints Mortgagee and its successors and assigns, as its attorney-in-fact, which agency is
coupled with an interest, to perform any obligation of Mortgagor hereunder upon the occurrence of an event, act or omission which, with notice or passage of time or both, would constitute a Default, provided, however, that: (a)
Mortgagee as such attorney-in-fact shall only be accountable for such funds as are actually received by Mortgagee; and (b) Mortgagee shall not be liable to Mortgagor or any other person or entity for any failure to act under this Section.

  

	7.9	REMEDIES CUMULATIVE. All rights and remedies of Mortgagee under this Mortgage and the other Loan Documents are cumulative and are in addition to all rights and
remedies provided by applicable law (including specifically that of foreclosure of this Mortgagee as though it were a mortgage). Mortgagee may enforce any one or more remedies or rights under the Loan Documents either successively or concurrently.

 ARTICLE 8. MISCELLANEOUS PROVISIONS 
  

	8.1	ADDITIONAL PROVISIONS. The Loan Documents contain or incorporate by reference the entire agreement of the parties with respect to matters contemplated herein and
supersede all prior negotiations. The Loan Documents grant further rights to Mortgagee and contain further agreements and affirmative and negative covenants by Mortgagor which apply to this Mortgage and to the Property and such further rights and
agreements are incorporated herein by this reference. THE OBLIGATIONS AND LIABILITIES OF MORTGAGOR UNDER THIS MORTGAGE AND THE OTHER LOAN DOCUMENTS ARE SUBJECT TO THE PROVISIONS OF SECTION 8 IN THE NOTE ENTITLED “BORROWER’S
LIABILITY.” 

  

	8.2	NON-WAIVER. By accepting payment of any amount secured hereby after its due date or late performance of any other Secured Obligation, Mortgagee shall not waive its
right against any person obligated directly or indirectly hereunder or on any Secured Obligation, either to require prompt payment or performance when due of all other sums and obligations so secured or to declare default for failure to make such
prompt payment or performance. No exercise of any right or remedy by Mortgagee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law. No failure by Mortgagee to exercise any right or remedy hereunder
arising upon any Default shall be construed to prejudice Mortgagee’s rights or remedies upon the 

  

 27 

 occurrence of any other or subsequent Default. No delay by Mortgagee in exercising any such right or
remedy shall be construed to preclude Mortgagee from the exercise thereof at any time while that Default is continuing. No notice to nor demand on Mortgagor shall of itself entitle Mortgagor to any other or further notice or demand in similar or
other circumstances. 
  

	8.3	CONSENTS AND APPROVALS. Wherever Mortgagee’s consent, approval, acceptance or satisfaction is required under any provision of this Mortgage or any of the other
Loan Documents, such consent, approval, acceptance or satisfaction shall not be unreasonably withheld, conditioned or delayed by Mortgagee unless such provision expressly so provides. 

  

	8.4	PERMITTED CONTESTS. After prior written notice to Mortgagee, Mortgagor may contest, by appropriate legal or other proceedings conducted in good faith and with due
diligence, the amount, validity or application, in whole or in part, of any lien, levy, tax or assessment, or any lien of any laborer, mechanic, materialman, supplier or vendor, or the application to Mortgagor or the Property of any law or the
validity thereof, the assertion or imposition of which, or the failure to pay when due, would constitute a Default; provided that (a) Mortgagor pursues the contest diligently, in a manner which Mortgagee determines is not prejudicial to
Mortgagee, and does not impair the lien of this Mortgage; (b) the Property, or any part hereof or estate or interest therein, shall not be in any danger of being sold, forfeited or lost by reason of such proceedings; (c) in the case of the contest
of any law or other legal requirement, Mortgagee shall not be in any danger of any civil or criminal liability; and (d) if required by Mortgagee, Mortgagor deposits with Mortgagee any funds or other forms of assurance (including a bond or letter of
credit) satisfactory to Mortgagee to protect Mortgagee from the consequences of the contest being unsuccessful. Mortgagor’s right to contest pursuant to the terms of this provision shall in no way relieve Mortgagor or Borrower of its
obligations under the Loan or to make payments to Mortgagee as and when due. 

  

	8.5	FURTHER ASSURANCES. Mortgagor shall, upon demand by Mortgagee, execute, acknowledge (if appropriate) and deliver any and all documents and instruments and do or cause
to be done all further acts reasonably necessary or appropriate to effectuate the purposes of the Loan Documents and to perfect any assignments contained therein. 

  

	8.6	ATTORNEYS’ FEES. If any legal action, suit or proceeding is commenced between Mortgagor and Mortgagee regarding their respective rights and obligations under this
Mortgage or any of the other Loan Documents, the prevailing party shall be entitled to recover, in addition to damages or other relief, costs and expenses, reasonable attorneys’ fees and court costs (including, without limitation, expert
witness fees). As used herein the term “prevailing party” shall mean the party which obtains the principal relief it has sought, whether by compromise settlement or judgment. If the party which commenced or instituted the action, suit or
proceeding shall dismiss or discontinue it without the concurrence of the other party, such other party shall be deemed the prevailing party. 

  

	8.7	MORTGAGOR AND MORTGAGEE DEFINED. The term “Mortgagor” includes both the original Mortgagor and any subsequent owner or owners of any of the Property, and the
term “Mortgagee” includes the original Mortgagee and any future owner or holder, including assignees, pledges and participants, of the Note or any interest therein. 

  

	8.8	DISCLAIMERS. 

  

	 	a.	Nominee Capacity of MERS. MERS serves as mortgagee of record and secured party solely as nominee, in an administrative capacity, for Lender and its successors and
assigns and only holds legal title to the interests granted, assigned, and transferred herein. All payments or deposits with respect to the Secured Obligations shall be made to Lender, all advances under the Loan Documents shall be made by Lender,
and all consents, approvals, or other determinations required or permitted of Mortgagee herein shall be made by Lender. MERS shall at all times comply with the instructions of Lender and its successors and assigns. If necessary to comply with law or
custom, MERS (for the 

  

 28 

 benefit of Lender and its successors and assigns) may be directed by Lender to exercise any or all of
those interests, including without limitation, the right to foreclose and sell the Property, and take any action required of Lender, including without limitation, a release, discharge or reconveyance of this Mortgage. Subject to the foregoing, all
references herein to “Mortgagee” shall include Lender and its successors and assigns. 
  

	 	b.	Relationship. The relationship of Mortgagor and Mortgagee under this Mortgage and the other Loan Documents is, and shall at all times remain, solely that of borrower
and lender; (the role of MERS hereunder being solely that of nominee as set forth in subsection (a) above and not that of a lender); and Mortgagee neither undertakes nor assumes any responsibility or duty to Mortgagor or to any third party with
respect to the Property. Notwithstanding any other provisions of this Mortgage and the other Loan Documents: (i) Mortgagee is not, and shall not be construed to be, a partner, joint venturer, member, alter ego, manager, controlling person or other
business associate or participant of any kind of Mortgagor, and Mortgagee does not intend to ever assume such status; (ii) Lender’s activities in connection with this Mortgage and the other Loan Documents shall not be “outside the scope of
activities of a lender of money” within the meaning of California Civil Code Section 3434, as amended or recodified from time to time, and Mortgagee does not intend to ever assume any responsibility to any person for the quality, suitability,
safety or condition of the Property; and (iii) Mortgagee shall not be deemed responsible for or a participant in any acts, omissions or decisions of Mortgagor. 

  

	 	c.	No Liability. Mortgagee shall not be directly or indirectly liable or responsible for any loss, claim, cause of action, liability, indebtedness, damage or injury of
any kind or character to any person or property arising from any construction on, or occupancy or use of, the Property, whether caused by or arising from: (i) any defect in any building, structure, grading, fill, landscaping or other improvements
thereon or in any on-site or off-site improvement or other facility therein or thereon; (ii) any act or omission of Mortgagor or any of Mortgagor’s agents, employees, independent contractors, licensees or invitees; (iii) any accident in or on
the Property or any fire, flood or other casualty or hazard thereon; (iv) the failure of Mortgagor or any of Mortgagor’s licensees, employees, invitees, agents, independent contractors or other representatives to maintain the Property in a safe
condition; or (v) any nuisance made or suffered on any part of the Property. 

  

	8.9	SEVERABILITY. If any term of this Mortgage or any other Loan Document, or the application thereof to any person or circumstances, shall, to any extent, be invalid or
unenforceable, the remainder of this Mortgage or such other Loan Document, or the application of such term to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term of this
Mortgage or such other Loan Document shall be valid and enforceable to the fullest extent permitted by law. 

  

	8.10	RELATIONSHIP OF ARTICLES. The rights, remedies and interests of Mortgagee under the Mortgage established by Article 1 and the security agreement established by Article
4 are independent and cumulative, and there shall be no merger of any lien created by the Mortgage with any security interest created by the security agreement. Mortgagee may elect to exercise or enforce any of its rights, remedies or interests
under either or both the Mortgage or the security agreement as Mortgagee may from time to time deem appropriate. The absolute assignment of rents and leases established by Article 3 is similarly independent of and separate from the Mortgage and the
security agreement. 

  

	8.11	MERGER. No merger shall occur as a result of Mortgagee’s acquiring any other estate in, or any other lien on, the Property unless Mortgagee consents to a merger
in writing. 

  

	8.12	OBLIGATIONS OF MORTGAGOR, JOINT AND SEVERAL. If more than one person has executed this Mortgage as “Mortgagor”, the obligations of all such persons hereunder
shall be joint and several. 

  

 29 

	8.13	SEPARATE AND COMMUNITY PROPERTY. Any married person who executes this Mortgage as a “Mortgagor” agrees that any money judgment which Mortgagee obtains
pursuant to the terms of this Mortgage or any other obligation of that married person secured by this Mortgage may be collected by execution upon any separate property or community property of that person. 

  

	8.14	INTEGRATION; INTERPRETATION. The Loan Documents contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters
contemplated therein and supersede all prior negotiations or agreements, written or oral. The Loan Documents shall not be modified except by written instrument executed by all parties. Any reference in any of the Loan Documents to the Property or
Collateral shall include all or any part of the Property or Collateral. Any reference to the Loan Documents includes any amendments, renewals or extensions now or hereafter approved by Mortgagee in writing. When the identity of the parties or other
circumstances make it appropriate, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 

  

	8.15	CAPITALIZED TERMS. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Note. 

  

	8.16	SUCCESSORS IN INTEREST. The terms, covenants, and conditions contained herein and in the other Loan Documents shall be binding upon and inure to the benefit of the
heirs, successors and assigns of the parties. The foregoing sentence shall not be construed to permit Mortgagor to assign the Loan except as otherwise permitted under the Note or the other Loan Documents. 

  

	8.17	GOVERNING LAW. This Mortgage was accepted by Mortgagee in the state of California and the proceeds of the Note secured hereby were disbursed from the state of
California, which state the parties agree has a substantial relationship to the parties and to the underlying transaction embodied hereby. Accordingly, in all respects, including, without limiting the generality of the foregoing, matters of
construction, validity, enforceability and performance, this Mortgage, the Note and the other Loan Documents and the obligations arising hereunder and thereunder shall be governed by, and construed in accordance with, the laws of the state of
California applicable to contracts made and performed in such state and any applicable law of the United States of America, except that at all times the provisions for all remedies granted hereunder and the creation, perfection and enforcement of
the liens and security interests created pursuant hereto and pursuant to the other Loan Documents in any Collateral which is located in the state where the Property is located shall be governed by and construed according to the law of the state
where the Property is located. Except as provided in the immediately preceding sentence, Mortgagor hereby unconditionally and irrevocably waives, to the fullest extent permitted by law, any claim to assert that the law of any jurisdiction other than
California governs this Mortgage, the Note and other Loan Documents. 

  

	8.18	CONSENT TO JURISDICTION. Mortgagor irrevocably submits to the jurisdiction of: (a) any state or federal court sitting in the state of California over any suit, action,
or proceeding, brought by Mortgagor against Mortgagee, arising out of or relating to this Mortgage, the Note or the Loan; (b) any state or federal court sitting in the state where the Property is located or the state in which Mortgagor’s
principal place of business is located over any suit, action or proceeding, brought by Mortgagee against Mortgagor, arising out of or relating to this Mortgage, the Note or the Loan; and (c) any state court sitting in the county of the state where
the Property is located over any suit, action, or proceeding, brought by Mortgagee to foreclose this Mortgage or any action brought by Mortgagee to enforce its rights with respect to the Collateral. Mortgagor irrevocably waives, to the fullest
extent permitted by law, any objection that Mortgagor may now or hereafter have to the laying of venue of any such suit, action, or proceeding brought in any such court and any claim that any such suit, action, or proceeding brought in any such
court has been brought in an inconvenient forum. 

  

	8.19	EXHIBITS. Exhibit A is incorporated into this Mortgage by this reference. 

  

	8.20	ADDRESSES; REQUEST FOR NOTICE. All notices and other communications that are required or permitted to be given to a party under this Mortgage or the other Loan
Documents shall be in writing, refer to 

  

 30 

 the Loan number, and shall be sent to such party, either by personal delivery, by overnight delivery
service, by certified first class mail, return receipt requested, or by facsimile transmission to the addressee or facsimile number below. All such notices and communications shall be effective upon receipt of such delivery or facsimile
transmission. The addresses of the parties are set forth on page 1 of this Mortgage and the facsimile numbers for the parties are as follows: 
 Mortgagee: 
 MORTGAGE ELECTRONIC REGISTRATION 
 SYSTEMS, INC. 
 FAX No.: (703) 748-0183 
  

			
	 Mortgagor:
  
 KBS SABAL PAVILION, LLC
 FAX No.: (949) 417-6518
  
 With a copy to:
  
 Stacie Yamane
 KBS Realty Advisors LLC
 620 Newport Center Drive, Suite 1300
 Newport Beach, CA 92660
 FAX No.: (949) 417-6520
	  	 With additional copies to:
  
 Peter Potrykus
 KBS Capital Advisors LLC
 1133 21st Street NW, Suite
400
 Washington, DC 20036
 FAX No.: (202) 822-1340
  
 L. Bruce Fischer
 Morgan, Lewis & Bochius LLP
 5 Park Plaza, Suite 1750
 Irvine, CA 92614
 FAX No.: (949) 399-7001

	  
	  

 Mortgagor’s principal place of business is at the address set forth on page 1 of this
Mortgage. 
 Any Mortgagor whose address is set forth on page 1 of this Mortgage hereby requests that a copy of notice of default and notice
of sale be delivered to it at that address. Failure to insert an address shall constitute a designation of Mortgagor’s last known address as the address for such notice. Any party shall have the right to change its address for notice hereunder
to any other location within the continental United States by giving 30 days notice to the other parties in the manner set forth above. 
  

	8.21	COUNTERPARTS. This Mortgage may be executed in any number of counterparts, each of which, when executed and delivered, will be deemed an original and all of which
taken together, will be deemed to be one and the same instrument. 

  

	8.22	WAIVER OF JURY TRIAL. TO THE EXTENT NOW OR HEREAFTER PERMITTED BY APPLICABLE LAW, MORTGAGEE AND MORTGAGOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS MORTGAGE OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF MORTGAGEE OR MORTGAGOR. THIS PROVISION IS A MATERIAL INDUCEMENT FOR MORTGAGEE TO ENTER INTO THIS MORTGAGE. 

  

 31 

 IN WITNESS WHEREOF, Mortgagor has executed this Mortgage as of the day and year set forth above. 
  

									
	“MORTGAGOR”
	
	KBS SABAL PAVILION, LLC,
	a Delaware limited liability company
		
	By:	 	KBS REIT ACQUISITION II, LLC,
		 	a Delaware limited liability company,
		 	its sole member
			
		 	By:	 	KBS Limited Partnership,
		 		 	a Delaware limited partnership
		 		 	its sole member
				
		 		 	By:	 	KBS REAL ESTATE INVESTMENT TRUST, INC.
		 		 		 	a Maryland corporation,
		 		 		 	general partner
					
		 		 		 	By:	 	 /s/ Charles J. Schreiber, Jr.

		 		 		 		 	Charles J. Schreiber, Jr.
		 		 		 		 	Chief Executive Officer

 (ALL SIGNATURES MUST BE ACKNOWLEDGED) 
  

	
	WITNESS/ATTEST
	  

	
	  

 (ALL SIGNATURES MUST BE WITNESSED BY TWO WITNESSES, AND THE NAMES MUST BE PRINTED BENEATH THE SIGNATURE)Mezzanine Loan Agreement

 Exhibit 10.8 
 MEZZANINE LOAN AGREEMENT 
 between 
 KBS REIT ACQUISITION II, LLC, a Delaware limited liability company 
 and 
 Wells Fargo Bank, National Association 
 Entered into as of July 6, 2006 

 TABLE OF CONTENTS 
  

					
	ARTICLE 1. DEFINITIONS	  	1
	        1.1.	 	DEFINED TERMS	  	1
	        1.2.	 	EXHIBITS INCORPORATED	  	5
		
	ARTICLE 2. LOAN	  	5
	        2.1.	 	LOAN	  	5
	        2.2.	 	LOAN UNSECURED	  	5
	        2.3.	 	LOAN FEE	  	5
	        2.4.	 	NOTE	  	5
	        2.5.	 	PURPOSE	  	5
	        2.6.	 	INTEREST; PAYMENTS	  	5
	        2.7.	 	BORROWING AND REPAYMENT	  	5
	        2.8.	 	CREDIT FOR PRINCIPAL PAYMENTS	  	5
	        2.9.	 	MATURITY DATE	  	6
	        2.10.	 	FIRST OPTION TO EXTEND	  	6
	        2.11.	 	SECOND OPTION TO EXTEND	  	6
	        2.12.	 	GUARANTY(S)	  	7
		
	ARTICLE 3. DISBURSEMENT	  	8
	        3.1.	 	CONDITIONS PRECEDENT	  	8
		 	(a)        Compliance	  	8
		 	(b)        Documentation	  	8
		 	(c)        Approval of Lender’s Counsel	  	8
		 	(d)        Disbursement Certification	  	8
	        3.2.	 	ACCOUNT, PLEDGE AND ASSIGNMENT, AND DISBURSEMENT AUTHORIZATION	  	8
	        3.3.	 	FUNDS TRANSFER DISBURSEMENTS	  	8
		
	ARTICLE 4. REPRESENTATIONS AND WARRANTIES	  	10
	        4.1.	 	AUTHORITY/ENFORCEABILITY	  	10
	        4.2.	 	BINDING OBLIGATIONS	  	10
	        4.3.	 	FORMATION AND ORGANIZATIONAL DOCUMENTS	  	10
	        4.4.	 	NO VIOLATION	  	10
	        4.5.	 	LITIGATION	  	10
	        4.6.	 	FINANCIAL CONDITION	  	10
	        4.7.	 	NO MATERIAL ADVERSE CHANGE	  	10
	        4.8.	 	ACCURACY	  	11
	        4.9.	 	TAX LIABILITY	  	11
	        4.10.	 	NO SUBORDINATION	  	11
	        4.11.	 	PERMITS; FRANCHISES	  	11
	        4.12.	 	OTHER OBLIGATIONS	  	11
	        4.13.	 	BUSINESS LOAN	  	11
	        4.14.	 	TAX SHELTER REGULATIONS	  	11

  

 i 

					
	ARTICLE 5. COVENANTS OF BORROWER	  	13
	        5.1.	  	OTHER INDEBTEDNESS	  	13
	        5.2.	  	MERGER, CONSOLIDATION, SALE OF ASSETS	  	13
	        5.3.	  	GUARANTEES	  	13
	        5.4.	  	EXPENSES	  	13
	        5.5.	  	ERISA COMPLIANCE	  	14
	        5.6.	  	EXISTENCE	  	14
	        5.7.	  	TAXES AND OTHER LIABILITIES	  	14
	        5.8.	  	NOTICE	  	14
	        5.9.	  	INSURANCE	  	14
	        5.10.	  	FACILITIES	  	14
	        5.11.	  	RETURN OF CAPITAL	  	15
	        5.12.	  	LIQUIDITY REQUIREMENT	  	15
		
	ARTICLE 6. REPORTING COVENANTS	  	18
	        6.1.	  	FINANCIAL INFORMATION	  	18
	        6.2.	  	BOOKS AND RECORDS	  	18
		
	ARTICLE 7. DEFAULTS AND REMEDIES	  	18
	        7.1.	  	DEFAULT	  	18
		  	(a)        Payment; Performance	  	18
		  	(b)        Performance of Other Obligations	  	19
		  	(c)        Attachment	  	19
		  	(d)        Representations and Warranties	  	19
		  	(e)        Voluntary Bankruptcy; Insolvency; Dissolution	  	19
		  	(f)        Involuntary Bankruptcy	  	19
		  	(g)        Partners; Guarantors	  	19
		  	(h)        Death or Incapacity of Borrower	  	20
		  	(i)        Change In Management or Control	  	20
		  	(j)        Transfer of Assets	  	20
	        7.2.	  	ACCELERATION UPON DEFAULT; REMEDIES	  	20
	        7.3.	  	RIGHT OF CONTEST	  	20
		
	ARTICLE 8. MISCELLANEOUS PROVISIONS	  	20
	        8.1.	  	INDEMNITY	  	20
	        8.2.	  	FORM OF DOCUMENTS	  	21
	        8.3.	  	NOTICES	  	21
	        8.4.	  	RELATIONSHIP OF PARTIES	  	21
	        8.5.	  	ATTORNEYS’ FEES AND EXPENSES; ENFORCEMENT	  	21
	        8.6.	  	IMMEDIATELY AVAILABLE FUNDS	  	21
	        8.7.	  	LENDER’S CONSENT	  	22
	        8.8.	  	LOAN SALES AND PARTICIPATIONS; DISCLOSURE OF INFORMATION	  	23
	        8.9.	  	SEVERABILITY	  	24
	        8.10.	  	NO WAIVER; SUCCESSORS	  	24
	        8.11.	  	TIME	  	24

  

 ii 

					
	        8.12.	  	HEADINGS	  	24
	        8.13.	  	GOVERNING LAW	  	24
	        8.14.	  	USA PATRIOT ACT NOTICE	  	25
	        8.15.	  	INTEGRATION; INTERPRETATION	  	25
	        8.16.	  	JOINT AND SEVERAL LIABILITY	  	26
	        8.17.	  	COUNTERPARTS	  	26

  

					
	EXHIBIT A	  	Documents	  	1
			
	EXHIBIT B	  	Transfer Authorizer Designation	  	1

  

 iii 

 MEZZANINE LOAN AGREEMENT 
 THIS MEZZANINE LOAN AGREEMENT (“Agreement”) is entered into as of July 6, 2006, by and between KBS REIT ACQUISITION II, LLC, a Delaware limited liability company (“Borrower”), and Wells Fargo
Bank, National Association (“Lender”). 
 R E C I T A L 
 WHEREAS, Wells Fargo Bank, National Association (“Mortgage Lender”) has made a loan in the original principal amount of Fourteen
Million Seven Hundred Thousand and No/100 Dollars ($14,700,000.00) (the “Mortgage Loan”) to KBS Sabal Pavilion, LLC, a Delaware limited liability company (the “Mortgage Borrower”), which Mortgage Loan is evidenced by the
Mortgage Loan Documents; 
 WHEREAS, Borrower is the legal and beneficial owner of all of the membership interests in Mortgage
Borrower; 
 WHEREAS, Borrower has requested Lender to make a loan to it in the aggregate principal amount of Four Million Eight
Hundred Ninety-Eight Thousand and No/100 Dollars ($4,898,000.00) (the “Loan”); and 
 WHEREAS, as a condition
precedent to the obligation of Lender to make the Loan to Borrower, Borrower has entered into, among other things, that certain Pledge and Security Agreement, dated as of the date hereof, in favor of Lender (as amended, restated, replaced,
supplemented or otherwise modified from time to time, the “Pledge Agreement”), pursuant to which Borrower has granted to Lender a first priority security interest in the Collateral (as defined in the Pledge Agreement), including its
limited liability company interests in Mortgage Borrower, as security for the Debt; 
 NOW, THEREFORE, in consideration of the
covenants set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree, represent and warrant as follows: 
 ARTICLE 1. DEFINITIONS 
  

	 	1.1.	DEFINED TERMS. The following capitalized terms generally used in this Agreement shall have the meanings defined or referenced below. Certain other capitalized terms
used only in specific sections of this Agreement are defined in such sections. 

 “Account” - means an account
with Lender, account number 4121364293, in the name of Borrower or Borrower’s designee into which Loan proceeds will be deposited. 
 “Affiliates” - as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For purposes of this definition, “control” (including,
with correlative meanings, 

 the terms “controlling”, “controlled by” and “under common control with”),
as applied to any Person, means (a) the possession, directly or indirectly, of the power to vote ten percent (10%) or more of all interests having voting power for the election of directors of such Person or otherwise to direct or cause
the direction of the management and policies of that Person, whether through the ownership of voting interests or by contract or otherwise, or (b) the ownership of a general partnership interest or a limited partnership interest (or other
ownership interest) representing ten percent (10%) or more of the outstanding limited partnership interests or other ownership interests of such Person. 
 “Agreement” - shall have the meaning ascribed to such term in the preamble hereto. 
 “Bankruptcy Code” - means the Bankruptcy Reform Act of 1978 (11 USC § 101-1330) as now or hereafter amended or recodified. 
 “Borrower” - means KBS REIT ACQUISITION II, LLC, a Delaware limited liability company. 
 “Business Day” - means a day of the week (but not a Saturday, Sunday or holiday) on which the offices of Lender are open to the public for carrying on substantially all of Lender’s business functions. Unless
specifically referenced in this Agreement as a Business Day, all references to “days” shall be to calendar days. 
 “Collateral” – shall have the meaning ascribed to such term in the Pledge Agreement. 
 “Debt”
shall mean the outstanding principal amount of the Loan together with all interest accrued and unpaid thereon and all other sums, fees and expenses due to Lender in respect of the Loan under the Note, this Agreement, the Pledge Agreement, the
Indemnity Agreement or any other Loan Document. 
 “Default” - shall have the meaning ascribed to such term in that certain
Section entitled Default. 
 “Disbursement Date” shall mean the date upon which proceeds of the Loan and the Mortgage Loan
are disbursed. 
 “First Extended Maturity Date” - means April 7, 2007. 
 “First Option to Extend” - means Borrower’s option, subject to the terms and conditions of that certain Section entitled First
Option to Extend, to extend the term of the Loan from the Maturity Date to the First Extended Maturity Date. 
 “Guarantor” - means KBS LIMITED PARTNERSHIP, a Delaware limited partnership, PETER M. BREN, an individual, LINDA BREN, an individual, 
  

 2 

 CHARLES J. SCHREIBER, JR., an individual, SCHREIBER TRUST, also known as THE SCHREIBER COMMUNITY PROPERTY
TRUST, established March 18, 1991, as amended, a trust, JILL KALIONZES SCHREIBER, an individual, PETER McMILLAN, an individual, TERESA STREMPEK, an individual, KEITH HALL, an individual, and TONYA HALL, an individual, and any other person or
entity who, or which, in any manner, is or becomes obligated to Lender under any guaranty now or hereafter executed in connection with respect to the Loan (collectively or severally as the context thereof may suggest or require). 
 “KBS REIT” - means the KBS Real Estate Investment Trust, Inc. 
 “Lender” - means Wells Fargo Bank, National Association. 
 “Loan” - means the principal sum that Lender agrees to lend and Borrower agrees to borrow pursuant to the terms and conditions of this Agreement: Four Million Eight Hundred Ninety-Eight Thousand and
00/100ths Dollars ($4,898,000.00). 
 “Loan Documents” - means those documents, as hereafter amended, supplemented, replaced
or modified, properly executed and in recordable form, if necessary, listed in Exhibit A as Loan Documents. 
 “Management
Agreement” shall mean the Management Agreement by and between Mortgage Borrower and Manager, as such agreement may be amended, restated, replaced, supplemented or otherwise modified from time to time with Lender’s consent, for the
Property, together with all other agreements relating to the management, leasing, development or marketing of the Property, entered into by or on behalf of Mortgage Borrower, as such agreements may be amended, restated, replaced, supplemented or
otherwise modified from time to time with Lender’s consent (to the extent required hereby). 
 “Manager” shall mean CB
Richard Ellis, or any other Person approved in accordance with the terms and conditions of the Mortgage Loan Documents and the Loan Documents. 
 “Maturity Date” - means January 7, 2007. 
 “Maximum Legal Rate” shall mean the maximum
nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of
the State of California. 
 “Mortgage” – means that certain Mortgage, Assignment of Leases and Rents and Security
Agreement, dated as of the date hereof, made by Mortgage Borrower in favor of Wells Fargo Bank, National Association. 
 “Mortgage
Borrower” shall have the meaning set forth in the Recitals. 
  

 3 

 “Mortgage Lender” shall have the meaning set forth in the Recitals. 
 “Mortgage Loan” shall have the meaning set forth in the Recitals. 
 “Mortgage Loan Documents” shall mean, collectively, the documents delivered to Mortgage Lender in connection with the Mortgage Loan, as
amended, restated, replaced, supplemented or otherwise modified from time to time with Lender’s consent. 
 “Note” -
means that certain Note of even date herewith, in the original principal amount of the Loan, executed by Borrower and payable to the order of Lender, as hereafter amended, supplemented, replaced or modified. 
 “Original Maturity Date” - means the Maturity Date. 
 “Other Related Documents” - means those documents, as hereafter amended, supplemented, replaced or modified from time to time, properly executed and in recordable form, if necessary, listed in Exhibit
A as Other Related Documents. 
 “Participant” - shall have the meaning ascribed to such term in that certain Section
entitled Loan Sales and Participations; Disclosure of Information. 
 “Person” shall mean any individual, corporation,
partnership, limited liability company, joint venture, estate, trust, unincorporated association, any other entity, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing. 
 “Pledge Agreement” – means that certain Pledge and Security Agreement
entered into as of the date hereof by and between Borrower and Lender. 
 “Prime Rate” - means a base rate of interest which
Lender establishes from time to time and which serves as the basis upon which the effective rates of interest are calculated for those loans making reference thereto. Any change in an effective rate due to a change in the Prime Rate shall become
effective on the day each such change is announced within Lender. 
 “Property” – means that certain real property and
all improvements thereon, including that certain office building known as “Sabal Pavilion I” located at 3620 Queen Palm Drive, in Tampa, Florida. 
 “Second Extended Maturity Date” - means July 7, 2007. 
 “Second Option to
Extend” - means Borrower’s option, subject to the terms and conditions of that certain Section entitled Second Option to Extend, to extend the term of the Loan from the First Extended Maturity Date to the Second Extended
Maturity Date. 
  

 4 

	 	1.2.	EXHIBITS INCORPORATED. All exhibits, schedules or other items attached hereto are incorporated into this Agreement by such attachment for all purposes.

 ARTICLE 2. LOAN 
  

	 	2.1.	LOAN. By and subject to the terms of this Agreement and each other document identified on Exhibit A hereto as a Loan Document, Lender agrees to lend to Borrower and
Borrower agrees to borrow from Lender up to the principal sum of Four Million Eight Hundred Ninety-Eight Thousand and 00/100ths Dollars ($4,898,000.00). 

  

	 	2.2.	LOAN COLLATERAL. This Loan is secured by the Collateral as defined in the Pledge Agreement. 

  

	 	2.3.	LOAN FEE. Upon, and in consideration of, the execution by Lender of this Agreement, Borrower shall pay to Lender a non-refundable loan fee in the amount of Fifteen
Thousand and 00/100ths Dollars ($15,000.00). Borrower agrees that Lender may withhold the loan fee from the proceeds of the Loan for the payment of the loan fee. 

  

	 	2.4.	NOTE. The Loan shall be evidenced by a promissory note (“Note”). 

  

	 	2.5.	PURPOSE. The proceeds of the Loan shall be used to pay the costs incurred by the Mortgage Borrower, of which Borrower is the sole member, to acquire the office
building known as “Sabal Pavilion I” at 3620 Queen Palm Drive, in Tampa, Florida. Borrower agrees that the proceeds of the Loan shall be payable by the Lender directly to the title insurance company or such other party acting as the
closing agent for the purchase of the Property by the Mortgage Borrower. 

  

	 	2.6.	INTEREST; PAYMENTS. Except as otherwise provided in any Loan Document, interest shall accrue upon the outstanding principal balance of the Loan at the rate(s) provided
in the Note, and such interest and all outstanding principal of the Loan shall be payable as required therein. 

  

	 	2.7.	BORROWING AND REPAYMENT. Except as otherwise provided in any Loan Document, after the advance under the Loan, Borrower may, from time to time through the Maturity Date
(as the same may be extended pursuant to the provisions of Sections 2.10 and 2.11 below), partially or wholly repay its outstanding borrowings under the Loan. 

  

	 	2.8.	CREDIT FOR PRINCIPAL PAYMENTS. Any payment made upon the outstanding principal balance of the Loan shall be credited as of the Business Day received, provided such
payment is received by Lender no later than 11:00 a.m. (Pacific Standard Time or Pacific Daylight Time, as applicable) and constitutes immediately available funds. Any principal payment received after said time, or which does not constitute
immediately available funds, shall be credited upon such funds having become unconditionally and immediately available to Lender. 

  

 5 

	 	2.9.	MATURITY DATE. The Maturity Date of the Loan shall be January 7, 2007, (as the same may be extended pursuant to the provisions of Sections 2.10 and 2.11 below),
on which date all sums due and owing under this Agreement and the other Loan Documents shall be payable in full. All payments due to Lender under this Agreement, whether at the Maturity Date or otherwise, shall be paid in immediately available
funds. 

  

	 	2.10.	FIRST OPTION TO EXTEND. Borrower shall have the option to extend the term of the Loan from the Maturity Date (for purposes of this Section, “Original Maturity
Date”), to the First Extended Maturity Date, upon satisfaction of each of the following conditions precedent: 

  

	 	(a)	Borrower shall provide Lender with written notice of Borrower’s request to exercise the First Option to Extend not more than ninety (90) days but not less than thirty
(30) days prior to the Original Maturity Date; and 

  

	 	(b)	As of the date of Borrower’s delivery of notice of request to exercise the First Option to Extend, and as of the Original Maturity Date, no Default shall have occurred and be
continuing, and no event or condition which, with the giving of notice or the passage of time or both, would constitute a Default shall have occurred and be continuing, and Borrower shall so certify in writing; and 

  

	 	(c)	Borrower shall execute or cause the execution of all documents reasonably required by Lender to exercise the First Option to Extend; and 

  

	 	(d)	On the Original Maturity Date, the aggregate outstanding principal balance of the Loan, and all interest accrued thereon, must be no greater than 75% of the initial amount of the
Loan; and 

  

	 	(e)	There shall have occurred no material adverse change, as determined by Lender in its sole discretion, in the financial condition of Borrower or any Guarantor from that which existed
as of the later of: (A) the date hereof; or (B) the date upon which the financial condition of such party was first represented to Lender; and 

  

	 	(f)	On the Original Maturity Date, Borrower shall pay to Lender an extension fee in the amount of Five Thousand and no/100ths Dollars ($5,000); and 

  

	 	(g)	KBS REIT remains Effective as described in 3.1(d). 

 Except as modified by
this First Option to Extend, the terms and conditions of this Agreement and the other Loan Documents as modified and approved by Lender shall remain unmodified and in full force and effect. 
  

	 	2.11.	SECOND OPTION TO EXTEND. If Borrower shall have exercised the First Option to Extend and the Original Maturity Date of the Note shall have been

  

 6 

 extended in accordance with the terms and provisions of this Agreement, Borrower shall have the option to
further extend the term of the Loan to the Second Extended Maturity Date, upon satisfaction of each of the following conditions precedent: 
  

	 	(a)	Borrower shall provide Lender with written notice of Borrower’s request to exercise the Second Option to Extend not more than ninety (90) days but not less than thirty
(30) days prior to the First Extended Maturity Date; and 

  

	 	(b)	As of the date of Borrower’s delivery of notice of request to exercise the Second Option to Extend, and as of the First Extended Maturity Date, no Default shall have occurred
and be continuing, and no event or condition which, with the giving of notice or the passage of time or both, would constitute a Default shall have occurred and be continuing, and Borrower shall so certify in writing; and 

 

	 	(c)	Borrower shall execute or cause the execution of all documents reasonably required by Lender to exercise the Second Option to Extend; and 

  

	 	(d)	On the First Extended Maturity Date, the aggregate outstanding principal balance of the Loan, and all interest accrued thereon, must be no greater than 50% of the initial amount of
the Loan; and 

  

	 	(e)	There shall have occurred no material adverse change, as determined by Lender in its sole discretion, in the financial condition of Borrower or any Guarantor from that which existed
as of the later of: (A) the date hereof; or (B) the date upon which the financial condition of such party was first represented to Lender; and 

  

	 	(f)	On the First Extended Maturity Date, Borrower shall pay to Lender an extension fee in the amount of Five Thousand and no/100ths Dollars ($5,000); and 

  

	 	(g)	KBS REIT remains Effective as described in 3.1(d). 

 Except as modified by
this Second Option to Extend, the terms and conditions of this Agreement and the other Loan Documents as modified and approved by Lender shall remain unmodified and in full force and effect. 
  

	 	2.12.	GUARANTEES. All obligations of Borrower to Lender under the Loan Documents shall be guaranteed by Guarantor and such guarantees shall be evidenced by and subject to
the terms of a form of guaranty to be furnished by Lender. 

  

 7 

 ARTICLE 3. DISBURSEMENT 
  

	 	3.1.	CONDITIONS PRECEDENT. Lender’s obligation to make any disbursements or take any other action under the Loan Documents shall be subject at all times to
satisfaction of each of the following conditions precedent: 

  

	 	(a)	Compliance. The representations and warranties contained herein shall be true on and as of the date of the signing of this Agreement and on the date such action is to
be taken, with the same effect as though such representations and warranties had been made on and as of such dates, and on such dates no Default, as defined in this Agreement, shall exist and no event or circumstance shall have occurred or arisen
which would constitute a Default but for any unsatisfied requirement for the giving of notice or passage of time. 

  

	 	(b)	Documentation. Prior to taking any such action hereunder, Borrower shall have delivered to Lender all Loan Documents and such other documents, instruments, policies,
forms of evidence and other materials as Lender may request under the terms of the Loan Documents. 

  

	 	(c)	Approval of Lender’s Counsel. All legal matters incidental to such action shall be satisfactory to counsel of Lender. 

  

	 	(d)	Disbursement Certification. Prior to the disbursement of any loan proceeds during the term of the Loan, Borrower shall certify to Lender that the Securities and
Exchange Commission has declared the registration statement for the KBS REIT “Effective”. With notice to exercise the First Option to Extend and the Second Option to Extend, Borrower shall certify this remains in full force and effect and
shall also provide documentation relating to the purpose of each advance. 

  

	 	3.2.	ACCOUNT, PLEDGE AND ASSIGNMENT, AND DISBURSEMENT AUTHORIZATION. The proceeds of the Loan, when qualified for disbursement, shall be deposited into the Account or
otherwise disbursed to or for the benefit or account of Borrower under the terms of this Agreement; provided, however, that any direct disbursements from the Loan which are made by means of wire transfer shall be subject to the
provisions of that certain Section entitled Funds Transfer Disbursements or any funds transfer agreement which is identified in Exhibit A hereto. Disbursements hereunder may be made by Lender upon the written request of the following
persons: Stacie Yamane, Verona Chua or David Meltz, who have been authorized by Borrower to request such disbursements until such time as written notice of Borrower’s revocation of such authority is received by Lender at the address herein. As
security for Borrower’s performance under the Loan Documents, Borrower hereby irrevocably pledges and assigns to Lender all monies at any time deposited in the Account. 

  

	 	3.3.	FUNDS TRANSFER DISBURSEMENTS. Borrower hereby authorizes Lender to disburse the proceeds of any Loan(s) made by Lender or its affiliate pursuant to

  

 8 

 the Loan Documents as requested by an authorized representative of the Borrower to any of the accounts
designated in that certain Exhibit entitled Transfer Authorizer Designation. Borrower agrees to be bound by any transfer request: (i) authorized or transmitted by Borrower; or, (ii) made in Borrower’s name and accepted by Lender in
good faith and in compliance with these transfer instructions, even if not properly authorized by Borrower. Borrower further agrees and acknowledges that Lender may rely solely on any bank routing number or identifying bank account number or name
provided by Borrower to effect a wire or funds transfer even if the information provided by Borrower identifies a different bank or account holder than named by the Borrower. Lender is not obligated or required in any way to take any actions to
detect errors in information provided by Borrower. If Lender takes any actions in an attempt to detect errors in the transmission or content of transfer or requests or takes any actions in an attempt to detect unauthorized funds transfer requests,
Borrower agrees that no matter how many times Lender takes these actions Lender will not in any situation be liable for failing to take or correctly perform these actions in the future and such actions shall not become any part of the transfer
disbursement procedures authorized under this provision, the Loan Documents, or any agreement between Lender and Borrower. Borrower agrees to notify Lender of any errors in the transfer of any funds or of any unauthorized or improperly authorized
transfer requests within 14 days after Lender’s confirmation to Borrower of such transfer. Lender will, in its sole discretion, determine the funds transfer system and the means by which each transfer will be made. Lender may delay or refuse to
accept a funds transfer request if the transfer would: (i) violate the terms of this authorization (ii) require use of a bank unacceptable to Lender or prohibited by government authority; (iii) cause Lender to violate any Federal
Reserve or other regulatory risk control program or guideline, or (iv) otherwise cause Lender to violate any applicable law or regulation. Lender shall not be liable to Borrower or any other parties for (i) errors, acts or failures to act
of others, including other entities, banks, communications carriers or clearinghouses, through which Borrower’s transfers may be made or information received or transmitted, and no such entity shall be deemed an agent of the Lender,
(ii) any loss, liability or delay caused by fires, earthquakes, wars, civil disturbances, power surges or failures, acts of government, labor disputes, failures in communications networks, legal constraints or other events beyond Lender’s
control, or (iii) any special, consequential, indirect or punitive damages, whether or not (a) any claim for these damages is based on tort or contract or (b) Lender or Borrower knew or should have known the likelihood of these
damages in any situation. Lender makes no representations or warranties other than those expressly made in this Agreement. 
  

 9 

 ARTICLE 4. REPRESENTATIONS AND WARRANTIES 
 As a material inducement to Lender’s entry into this Agreement, Borrower represents and warrants to Lender as of the date hereof and continuing thereafter that:

  

	 	4.1.	AUTHORITY/ENFORCEABILITY. If other than an individual, Borrower is in compliance with all laws and regulations applicable to its organization, existence and
transaction of business and has all necessary rights and powers to borrow as contemplated by the Loan Documents. 

  

	 	4.2.	BINDING OBLIGATIONS. Borrower is authorized to execute, deliver and perform its obligations under the Loan Documents, and such obligations shall be valid and binding
obligations of Borrower. 

  

	 	4.3.	FORMATION AND ORGANIZATIONAL DOCUMENTS. Borrower has delivered to Lender all formation and organizational documents of Borrower, of the partners, joint venturers or
members of Borrower, if any, and of all guarantors of the Loan, if any, and all such formation and organizational documents remain in full force and effect and have not been amended or modified since they were delivered to Lender. Borrower shall
immediately provide Lender with copies of any amendments or modifications of the formation or organizational documents. 

  

	 	4.4.	NO VIOLATION. Borrower’s execution, delivery, and performance under the Loan Documents do not: (a) require any consent or approval not heretofore obtained
under any partnership agreement, operating agreement, articles of incorporation, bylaws or other document; (b) conflict with, or constitute a breach or default or permit the acceleration of obligations under any agreement, contract, lease, or
other document by which the Borrower is bound or regulated; or (c) violate any statute, law, regulation or ordinance, or any order of any court or governmental entity. 

  

	 	4.5.	LITIGATION. Except as disclosed to Lender in writing, there are no claims, actions, suits, or proceedings pending, or to Borrower’s knowledge threatened, against
Borrower. 

  

	 	4.6.	FINANCIAL CONDITION. All financial statements and information heretofore and hereafter delivered to Lender by Borrower, including, without limitation, information
relating to the financial condition of Borrower, the partners, joint venturers or members of Borrower, and/or any Guarantors, fairly and accurately represent the financial condition of the subject thereof and have been prepared (except as noted
therein) in accordance with generally accepted accounting principles consistently applied. Borrower acknowledges and agrees that Lender may request and obtain additional information from third parties regarding any of the above, including, without
limitation, credit reports. 

  

	 	4.7.	NO MATERIAL ADVERSE CHANGE. There has been no material adverse change in the financial condition of Borrower and/or Guarantor since the dates of the latest financial
statements furnished to Lender and, except as otherwise disclosed to Lender in writing, Borrower has not entered into any material transaction which is not disclosed in such financial statements. 

  

 10 

	 	4.8.	ACCURACY. All reports, documents, instruments, information and forms of evidence delivered to Lender concerning the Loan or security for the Loan or required by the
Loan Documents are accurate, correct and sufficiently complete to give Lender true and accurate knowledge of their subject matter, and do not contain any misrepresentation or omission. 

  

	 	4.9.	TAX LIABILITY. Borrower has filed all required federal, state, county and municipal tax returns and has paid all taxes and assessments owed and payable, and Borrower
has no knowledge of any basis for any additional payment with respect to any such taxes and assessments. 

  

	 	4.10.	NO SUBORDINATION. There is no agreement, indenture, contract or instrument to which Borrower is a party or by which Borrower may be bound that requires the
subordination in right of payment of any of Borrower’s obligations subject to this Agreement to any other obligation of Borrower. 

  

	 	4.11.	PERMITS; FRANCHISES. Borrower possesses, and will hereafter possess, all permits, memberships, franchises, contracts and licenses required and all trademark rights,
trade names, trade name rights, patents, patent rights and fictitious name rights necessary to enable it to conduct the business in which it is now engaged without conflict with the rights of others. 

  

	 	4.12.	OTHER OBLIGATIONS. Borrower is not in default on any obligation for borrowed money, any purchase money obligation or any other material lease, commitment, contract,
instrument or obligation. 

  

	 	4.13.	BUSINESS LOAN. The Loan is a business loan transaction in the stated amount solely for the purpose of carrying on the business of Borrower and none of the proceeds of
the Loan will be used for the personal, family or agricultural purposes of the Borrower. 

  

	 	4.14.	TAX SHELTER REGULATIONS. Neither Borrower, any Guarantor nor any subsidiary of any of the foregoing intends to treat the Loan or the transactions contemplated by this
Agreement and the other Loan Documents as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4). If Borrower, or any other party to the Loan determines to take any action inconsistent with such
intention, Borrower will promptly notify Lender thereof. If Borrower so notifies Lender, Borrower acknowledges that Lender may treat the Loan as part of a transaction that is subject to Treasury Regulation Section 301.6112-1, and Lender will
maintain the lists and other records, including the identity of the applicable party to the Loan as required by such Treasury Regulation. 

  

	 	4.15.	INSURANCE. (a) Borrower shall cause Mortgagor Borrower to maintain at all times during the term of the Loan the insurance required under the Mortgage Loan
Documents as in effect on the date hereof (and provided that no 

  

 11 

 modification thereof by Mortgage Borrower that causes a decrease in coverage shall be binding on Lender
without the prior written consent of Lender), including, without limitation, meeting all insurer requirements thereunder. 
 (b) Borrower
shall provide Lender with evidence of all such insurance required hereunder simultaneously with Mortgage Borrower’s provision of such evidence to Mortgage Lender. If at any time Lender is not in receipt of written evidence that all insurance
required hereunder is in full force and effect and Borrower fails to provide Lender with evidence of such insurance within five (5) days after the written request of Lender, Lender shall have the right, without notice to Borrower, to take such
action as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender deems reasonably appropriate and all premiums incurred by Lender in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and shall bear interest at the Default Rate until paid. The rights of Lender under this Section 4.15 are subject to the rights
of Mortgage Lender pursuant to the terms of the Intercreditor Agreement. 
  

	 	4.16.	DAMAGES; INSURANCE AND CONDEMNATION PROCEEDS. (a) If the Property shall sustain a casualty, Borrower shall give prompt notice of such Casualty to Lender and shall
cause Mortgage Borrower to comply with the Mortgage Loan Documents with respect to the restoration of the Property. 

 (b)
Borrower shall give Lender prompt notice of any actual or threatened condemnation by any governmental authority of all or any part of the Property and shall cause Mortgage Borrower to deliver to Lender a copy of any and all papers served in
connection with such proceedings. Subject to the rights of Mortgage Lender under the Mortgage Loan Documents, with respect to any actual or threatened Condemnation for which the claim, amount or award exceeds One Hundred Thousand Dollars
($100,000.00), Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by Lender to permit such participation. Borrower shall or shall cause Mortgage Borrower to, at its
expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any condemnation, Borrower shall continue to
pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement. The rights of Lender under this Section 4.16 are subject to the rights of Mortgage Lender pursuant to the terms of the Intercreditor
Agreement. 
  

	 	4.17.	MORTGAGE LOAN REPRESENTATIONS. (a) The outstanding principal amount of the Mortgage Loan is $14,700,000.00 as of the Disbursement Date. Installments of interest
payable under the Mortgage Loan have been paid through the Disbursement Date, together with all other amounts due and payable prior to or as of the Disbursement Date. Neither Mortgage Borrower nor 

  

 12 

 Mortgage Lender is in default beyond any applicable notice and cure periods under the Mortgage Loan
Documents. Mortgage Lender has not issued any notice of default, and no event has occurred or circumstance exists which, with the passage of time or notice, or both, would become a Mortgage Loan Event of Default. 
 (b) To the best of Borrower’s knowledge, all of the representations and warranties of Mortgage Borrower contained in the Mortgage Loan Documents
delivered to Mortgage Lender dated as of the date hereof are true and correct in all material respects and are hereby incorporated into this Agreement and deemed made hereunder as and when made thereunder, and shall remain incorporated without
regard to any waiver, amendment or other modification thereof by the Mortgage Lender or without regard to whether the Mortgage Loan has been repaid, defeased or otherwise terminated. 
 (c) Borrower has delivered to Lender true, complete and correct copies of all Mortgage Loan Documents. None of the Mortgage Loan Documents has been
amended, restated, supplemented or otherwise modified as of the date thereof. 
 ARTICLE 5. COVENANTS OF BORROWER 
 Borrower covenants that so long as any credit remains available hereunder, and until payment in full of all amounts owing under the Loan Documents: 
  

	 	5.1.	[Intentionally Omitted]. 

  

	 	5.2.	MERGER, CONSOLIDATION, SALE OF ASSETS. Borrower shall not merge into or consolidate with any corporation or other entity, or sell, lease, assign, transfer or otherwise
dispose of all or substantially all of its assets other than in the ordinary course of business or as expressly permitted under the Mortgage Loan Documents. 

  

	 	5.3.	GUARANTEES. Without the prior written consent of Lender, Borrower shall not guarantee or become liable in any way as a surety, endorser (other than as endorser of
negotiable instruments in the ordinary course of business) or accommodation endorser or otherwise for debt or obligations of any other person or entity. Pre-existing commitments shall not be included for purposes of this limitation.

  

	 	5.4.	EXPENSES. Borrower shall immediately pay Lender upon demand all costs and expenses incurred by Lender in connection with: (a) the preparation of this Agreement,
all other Loan Documents and Other Related Documents contemplated hereby; (b) the administration of this Agreement, the other Loan Documents and Other Related Documents for the term of the Loan; and (c) the enforcement or satisfaction by
Lender of any of Borrower’s obligations under this Agreement, the other Loan Documents or the Other Related Documents. For all purposes of this Agreement, Lender’s costs and expenses shall include, without 

  

 13 

 limitation, all legal fees and expenses, accounting fees and auditor fees. If any of the services
described above are provided by an employee of Lender, Lender’s costs and expenses for such services shall be calculated in accordance with Lender’s standard charge for such services. 
  

	 	5.5.	ERISA COMPLIANCE. Borrower shall at all times comply with the provisions of ERISA with respect to any retirement or other employee benefit plan to which it is a party
as employer, and as soon as possible after Borrower knows, or has reason to know, that any Reportable Event (as defined in ERISA) with respect to any such plan of Borrower has occurred, it shall furnish to Lender a written statement setting forth
details as to such Reportable Event and the action, if any, which Borrower proposes to take with respect thereto, together with a copy of the notice of such Reportable Event furnished to the Pension Benefit Guaranty Corporation.

  

	 	5.6.	EXISTENCE. Borrower shall preserve and maintain its existence and all of its rights, privileges and franchises; conduct its business in an orderly, efficient, and
regular manner; and comply with the requirements of all applicable laws, rules, regulations and orders of a governmental authority. 

  

	 	5.7.	TAXES AND OTHER LIABILITIES. Borrower shall pay and discharge when due any and all indebtedness, obligations, assessments and taxes, both real and personal, owed by or
relating to Borrower and Borrower’s properties (including federal and state income taxes), except such as Borrower may in good faith contest or as to which a bona fide dispute may arise, provided provision is made to the satisfaction of Lender
for eventual payment thereof in the event that it is found that the same is an obligation of Borrower. 

  

	 	5.8.	NOTICE. Borrower shall promptly give notice in writing to Lender of: (a) any litigation pending or threatened against Borrower; (b) the occurrence of any
breach or default in the payment or performance of any obligation owing by Borrower to any person or entity, other than Lender; (c) any change in the name of Borrower, and in the case of a Borrower which is an organization, any change in its
identity or organizational structure; (d) any uninsured or partially uninsured loss through fire, theft, liability damage; or (e) any termination or cancellation of any insurance policy which Borrower is required herein to maintain.

  

	 	5.9.	INSURANCE. Borrower shall maintain and keep in force insurance of the types and in amounts customarily carried in lines of business similar to Borrower’s,
including but not limited to fire, extended coverage, public liability, damage and workers’ compensation (if required by applicable laws), carried in companies and in amounts satisfactory to Lender, and deliver to Lender from time to time at
Lender’s request schedules setting forth all insurance then in effect. 

  

	 	5.10.	FACILITIES. Borrower shall keep all Borrower’s properties useful or necessary to Borrower’s business in good repair and condition, and from time to time make
necessary repairs, renewals and replacements thereto so that Borrower’s properties shall be fully and efficiently preserved and maintained. 

  

 14 

	 	5.11.	RETURN OF CAPITAL. Borrower covenants and agrees to cause KBS REIT to pay down the Loan from the proceeds of first available equity raised through the sales of shares
to investors, after: (i) the payment of all fees, costs and expenses payable by KBS REIT (and its affiliated entities) with respect to: (A) the formation and operation of KBS REIT and its affiliated entities (including, without limitation,
fees, costs and expenses payable to KBS REIT’s advisors), and (B) the sale of shares to investors in KBS REIT (including, without limitation, fees, costs and expenses payable to KBS REIT’s dealer/manager), and (ii) the purchase
of “Plaza at Clayton” and the purchase of the Tribeca mezzanine loan (the equity raised and utilized for these two purchases shall not exceed $13,500,000 in the aggregate). 

  

	 	5.12.	[Intentionally Omitted]. 

  

	 	5.13.	MORTGAGE LOAN COVENANTS. (a) Borrower shall cause Mortgage Borrower to comply with all Mortgage Borrower’s obligations under the Mortgage Loan Documents.

 (b) In the event that, pursuant to the terms of the Mortgage Loan Documents, Mortgage Borrower is required to obtain the
consent of Mortgage Lender to any action to be taken with respect to the Property, Borrower shall obtain the consent of Lender prior to permitting Mortgage Borrower to take such action, which consent from Lender may be conditioned, among other
things, upon the delivery of evidence reasonably satisfactory to Lender that Mortgage Lender has (or will upon Lender’s approval) approved the same. 
  

	 	5.14.	SPECIAL PURPOSE COVENANTS. Borrower represents and warrants to its actual knowledge as of the date hereof that: 

  

	 	(a)	Borrower does not own and shall not own any assets other than its equity interests in the Mortgage Borrower (the “LLC Interests”), and personal property incidental
to the ownership of such LLC Interests; 

  

	 	(b)	Borrower has not and shall not engage in any business unrelated to the ownership of the LLC Interests and acting as the sole equity member of the Mortgage Borrower;

  

	 	(c)	Borrower has not and shall not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale, transfer of membership interest, or
amendment of its certificate of formation or limited liability company operating agreement; 

  

	 	(d)	Borrower, without the unanimous consent of all of its members, shall not file or consent to the filing of any bankruptcy or insolvency petition or 

  

 15 

 otherwise institute insolvency proceedings with respect to itself or any other entity in which it has a
direct or indirect legal or beneficial ownership interest; 
  

	 	(e)	Borrower has no indebtedness (and shall have no indebtedness) other than (i) the Loan; (ii) unsecured trade payables and/or operating expenses (which shall exclude any
real estate taxes or insurance premiums) not to exceed $10,000 in the aggregate which is not evidenced by a promissory note, incurred in the ordinary course of business and is paid within sixty (60) days from the date incurred, or, if later,
prior to delinquency. No indebtedness other than the Loan may be secured by a security interest in the LLC Interests; 

  

	 	(f)	Borrower has not and shall not fail to correct any known misunderstanding regarding the separate identity of such entity; 

  

	 	(g)	Borrower has maintained and shall maintain its accounts, books and records separate from any other person or entity; 

  

	 	(h)	Borrower has maintained and shall maintain its books, records, resolutions and agreements as official records; 

  

	 	(i)	Except for funds deposited into the Restricted Account (as defined in the Cash Management Agreement entered into in connection with the Mortgage Loan) pursuant to the Cash
Management Agreement, Borrower: (i) has not and shall not commingle its funds or assets with those of any other entity; and (ii) has held and shall hold its assets in its own name; 

  

	 	(j)	Borrower has conducted and shall conduct its business in its own name; 

  

	 	(k)	Borrower has maintained and shall maintain its accounting records and other entity documents separate from any other Person; 

  

	 	(l)	Borrower has prepared and shall prepare separate tax returns and financial statements, or if part of a consolidated group, is shown as a separate member of such group;

  

	 	(m)	Borrower has paid and shall pay its own liabilities and expenses out of its own funds and assets; 

  

	 	(n)	Borrower has held and shall hold regular meetings, as appropriate, to conduct its business and has observed and shall observe all limited liability company formalities and record
keeping; 

  

	 	(o)	Borrower has not and shall not assume or guarantee or become obligated for the debts of any other entity or hold out its credit as being available to satisfy the obligations of any
other entity; 

  

 16 

	 	(p)	Borrower has not and shall not acquire obligations or securities of its partners, members or shareholders; 

  

	 	(q)	Borrower has allocated and shall allocate fairly and reasonably the costs associated with common employees and any overhead for shared office space and each such entity has used and
shall use separate stationery, invoices and checks; 

  

	 	(r)	Except in connection with the Loan, Borrower has not and shall not pledge its assets for the benefit of any other Person; 

  

	 	(s)	Borrower has held and identified itself and shall hold itself out and identify itself as a separate and distinct entity under its own name and not as a division or part of any other
Person; 

  

	 	(t)	Borrower has not made and shall not make loans to any Person; 

  

	 	(u)	Borrower has not and shall not identify its partners, members or shareholders, or any Affiliates of any of the foregoing, as a division or part of it; 

  

	 	(v)	Borrower has not entered into and shall not enter into or be a party to, any transaction with its members or any Affiliates of any of its members, except in the ordinary course of
its business pursuant to written agreements and on terms which are intrinsically fair and are no less favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated third party; 

  

	 	(w)	Borrower has paid and shall pay the salaries of its own employees and has maintained and shall maintain a sufficient number of employees in light of its contemplated business
operations; 

  

	 	(x)	Borrower has maintained and shall maintain adequate capital in light of its contemplated business operations; 

  

	 	(y)	Borrower has conducted and shall conduct its business and operations in strict compliance with the terms contained in this Section 5.14; 

  

	 	(z)	Borrower’s limited liability company operating agreement shall contain the provisions set forth in this Section 5.14 and any such entity shall conduct its business
and operations in strict compliance with the terms contained therein; 

  

	 	(aa)	Borrower shall be a limited liability company organized in the State of Delaware; and 

  

 17 

	 	(bb)	The representations and warranties set forth in this Section 5.14 shall survive for so long as any amount remains payable to Lender under this Agreement, the Note or any of the
other Loan Documents. 

 ARTICLE 6. REPORTING COVENANTS 
  

	 	6.1.	FINANCIAL INFORMATION. Borrower shall deliver to Lender, as soon as available, but in no event later than one hundred twenty (120) days after Borrower’s
fiscal year end, current financial statements (including, without limitation, an income and expense statement, balance sheet, cash flow statements and cash flow projections) signed by an authorized person together with any other financial
information requested by Lender for the following persons and entities: 

 Borrower and Guarantor 
 Within thirty (30) days of Lender’s request, Borrower shall also deliver to Lender such quarterly and other financial information regarding any
persons or entities in any way obligated on the Loan as Lender may specify. If audited financial information is prepared, Borrower shall deliver to Lender copies of that information within fifteen (15) days of its final preparation. Subject to
any disclosure limitations imposed on KBS REIT by applicable regulatory agencies, Borrower shall deliver to Lender monthly reports on the status of equity raised by KBS REIT in addition to any other reporting Lender may require. Except as otherwise
agreed to by Lender, all such financial information shall be prepared in accordance with generally accepted accounting principles consistently applied. 
  

	 	6.2.	BOOKS AND RECORDS. Borrower shall maintain complete books of account and other records in accordance with generally accepted accounting principles consistently
applied, and permit any representative of Lender, at any reasonable time, to inspect, audit and examine such books and records, to make copies of the same, and to inspect the properties of Borrower. 

 ARTICLE 7. DEFAULTS AND REMEDIES 
  

	 	7.1.	DEFAULT. The occurrence of any one or more of the following shall constitute an event of default (“Default”) under this Agreement and the other Loan
Documents: 

  

	 	(a)	Payment; Performance. Borrower’s failure to pay when due any sum, to perform when due any other obligation, or to observe any covenant, the payment, performance,
or observance of which is required under the Note or any of the other Loan Documents; provided, however, that wherever provision is made for a time period during which Borrower may undertake to remedy such failure, then such failure
shall constitute a Default only if it is not remedied within that time period; or 

  

 18 

	 	(b)	Performance of Other Obligations. The occurrence of a breach or default in the payment or performance of any obligation imposed by any instrument or agreement (other
than the Loan Documents) pursuant to which Borrower has borrowed money from, or incurred liability to, any person or entity including Lender; or 

  

	 	(c)	Attachment. The sequestration or attachment of, or any levy or execution upon, any assets of Borrower which sequestration, attachment, levy or execution is not
released expunged or dismissed prior to the earlier of thirty (30) days or the sale of the assets affected thereby; or 

  

	 	(d)	Representations and Warranties. (i) The failure of any representation or warranty of Borrower in any of the Loan Documents and the continuation of such failure
for more than ten (10) days after written notice to Borrower from Lender requesting that Borrower cure such failure; (ii) the breach or failure of any representation, warranty or covenant of any Guarantor under any Guaranty and the
continuation of such failure for more than ten (10) days after written notice to Guarantor from Lender requesting that Guarantor cure such failure; or (iii) any material adverse change in the financial condition of Borrower or any
Guarantor from the financial condition represented to Lender as of the later of: (A) the date hereof; or (B) the date upon which the financial condition of such party was first represented to Lender; or 

  

	 	(e)	Voluntary Bankruptcy; Insolvency; Dissolution. (i) The filing of a petition by Borrower for relief under the Bankruptcy Code, or under any other present or future
state or federal law regarding bankruptcy, reorganization or other debtor relief law; (ii) the filing of any pleading or an answer by Borrower in any involuntary proceeding under the Bankruptcy Code or other debtor relief law which admits the
jurisdiction of the court or the petition’s material allegations regarding Borrower’s insolvency; (iii) a general assignment by Borrower for the benefit of creditors; or (iv) Borrower applying for, or the appointment of, a
receiver, trustee, custodian or liquidator of Borrower or any of its assets; or 

  

	 	(f)	Involuntary Bankruptcy. The failure of Borrower to effect a full dismissal of any involuntary petition under the Bankruptcy Code or under any other debtor relief law
that is filed against Borrower or in any way restrains or limits Borrower or Lender regarding the Loan prior to the earlier of the entry of any court order granting relief sought in such involuntary petition, or thirty (30) days after the date
of filing of such involuntary petition; or 

  

	 	(g)	Partners; Guarantors. The occurrence of any of the events specified in Paragraphs (d) – (f) of this Section as to any person or entity other than
Borrower, including, without limitation, any Guarantor, which is in any manner obligated to Lender under the Loan Documents; or 

  

 19 

	 	(h)	Mortgage Loan Documents. The occurrence of any amendment, modification, consolidation, spread, restatement, waiver or termination of any of the Mortgage Loan Documents
except to the extent approved in writing by Lender; or 

  

	 	(i)	Change In Management or Control. The occurrence of any material management or organizational change in Borrower or in the partners, venturers or members of Borrower,
including, without limitation, any partnership, joint venture or member dispute which Lender determines, in its sole and absolute discretion, shall have a material adverse effect on the Loan or on the ability of Borrower or its partners, venturers
or members to perform their obligations under the Loan Documents, other that such management or organizational change as may be expressly permitted under the Mortgage Loan Documents. 

  

	 	7.2.	TRANSFER OF ASSETS. The sale, assignment, pledge, hypothecation, mortgage or transfer of assets of Borrower other than in the ordinary course of business of said
entity. 

  

	 	7.3.	ACCELERATION UPON DEFAULT; REMEDIES. Upon the occurrence of any Default specified in this Article, Lender may, at its sole option, declare all sums owing to Lender
under the Note, this Agreement and the other Loan Documents immediately due and payable. Upon such acceleration, Lender may, in addition to all other remedies permitted under this Agreement and the other Loan Documents and at law or equity, apply
any sums in the Account to the sums owing under the Loan Documents and any and all obligations of Lender to fund further disbursements under the Loan shall terminate. 

  

	 	7.4.	RIGHT OF CONTEST. Borrower may contest in good faith any claim, demand, levy or assessment by any person other than Lender which would constitute a Default, if
Borrower pursues the contest diligently and in a manner which Lender determines will not be prejudicial to Lender nor impair the rights of Lender under the Loan Documents. 

 ARTICLE 8. MISCELLANEOUS PROVISIONS 
  

	 	8.1.	INDEMNITY. BORROWER HEREBY AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS LENDER, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS FROM AND AGAINST
ANY AND ALL LOSSES, DAMAGES, LIABILITIES, CLAIMS, ACTIONS, JUDGMENTS, COURT COSTS AND LEGAL OR OTHER EXPENSES (INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES AND EXPENSES) WHICH LENDER 

  

 20 

 MAY INCUR AS A DIRECT OR INDIRECT CONSEQUENCE OF: (A) THE PURPOSE TO WHICH BORROWER APPLIES THE
LOAN PROCEEDS; (B) THE FAILURE OF BORROWER TO PERFORM ANY OBLIGATIONS AS AND WHEN REQUIRED BY THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; (C) ANY FAILURE AT ANY TIME OF ANY OF BORROWER’S REPRESENTATIONS OR WARRANTIES TO BE TRUE
AND CORRECT; OR (D) ANY ACT OR OMISSION BY BORROWER, OR ANY CONSTITUENT PARTNER OR MEMBER OF BORROWER. BORROWER SHALL IMMEDIATELY PAY TO LENDER UPON DEMAND ANY AMOUNTS OWING UNDER THIS INDEMNITY, TOGETHER WITH INTEREST FROM THE DATE THE
INDEBTEDNESS ARISES UNTIL PAID AT THE RATE OF INTEREST APPLICABLE TO THE PRINCIPAL BALANCE OF THE NOTE. BORROWER’S DUTY TO INDEMNIFY LENDER SHALL SURVIVE THE REPAYMENT OF THE LOAN. 
  

	 	8.2.	FORM OF DOCUMENTS. The form and substance of all documents, instruments, and forms of evidence to be delivered to Lender under the terms of this Agreement and any of
the other Loan Documents shall be subject to Lender’s approval and shall not be modified, superseded or terminated in any respect without Lender’s prior written approval. 

  

	 	8.3.	CASUALTY AND CONDEMNATION. Notwithstanding the occurrence of any damage, casualty or condemnation of the Property, Borrower shall continue to pay the Debt at the time
and in the manner provided for its payment in the Note and in this Agreement. The rights of Lender under this Section 8.3 are subject to the rights of the Mortgage Lender pursuant to the Intercreditor Agreement. 

  

	 	8.4.	[Intentionally Omitted]. 

  

	 	8.5.	MANAGER. Borrower shall not allow Mortgage Borrower to surrender, terminate, cancel, modify, renew or extend the Management Agreement (provided however, any renewal or
extension of any Management Agreement which occurs automatically pursuant to the terms thereof shall not require Lender approval), or enter into any other Management Agreement, or consent to the assignment by the Manager of its interest under any
Management Agreement, in each case without the express consent of Lender. If at any time a new manager or other similar service provider is appointed, such new manager or other similar service provider, Borrower and Mortgage Borrower shall, as a
condition thereof, execute an subordination and agreement in the form substantially similar to the form of subordination executed on the Disbursement Date with respect to the Management Agreement. 

  

	 	8.6.	USURY SAVINGS. This Agreement and the other Loan Documents are subject to the express condition that at no time shall Borrower be required to pay interest on the
principal balance of the Loan at a rate which could subject Lender to either 

  

 21 

 civil or criminal liability as a result of being in excess of the Maximum Legal Rate. If by the terms of
this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the Effective Rate (as defined in the Note) or the
Alternate Rate (as defined in the Note), as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of
principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable laws, be amortized,
prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate from time to time in effect and applicable to the
Loan for so long as the Loan is outstanding. 
  

	 	8.7.	EXCULPATION. Notwithstanding anything in this Agreement or the Loan Documents to the contrary, but subject to the qualifications below, Lender shall not enforce the
liability and obligation of Borrower to perform and observe the obligations contained in the Note, this Agreement, the Pledge Agreement or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against the
constituent partners or members of Borrower (or their constituent members or partners), except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate action or proceeding to enable Lender to enforce
and realize upon its interest under the Note, this Agreement, the Pledge Agreement and the other Loan Documents, or in the Collateral, or any other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as
specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of the assets of Borrower (and in any other collateral given to Lender), and Lender, by accepting the Loan
Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against the constituent partners or members of Borrower (or their constituent members or partners) in any such action or proceeding under or by reason of or under or
in connection with the Loan Documents. The provisions of this Section 8.7 shall not, however: (a) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b) impair the right of
Lender to name any Person as a party defendant in any action or suit for foreclosure and sale under the Pledge Agreement; (c) affect the validity or enforceability of any guaranty made in connection with the Loan or any of the rights and
remedies of Lender thereunder; (d) impair the right of Lender to obtain the appointment of a receiver; (e) constitute a prohibition against Lender to seek a deficiency judgment against Borrower, in order (but only to the extent necessary)
to fully realize the security granted by the Pledge Agreement or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Collateral; or (f) constitute a waiver of the right of Lender to
enforce against Borrower (but not 

  

 22 

 any of its constituent members or partners), all sums for which Borrower is now or hereafter liable to
Lender (and Guarantor has guaranteed the same to Lender under the Guaranty): (i) for all losses, costs or damages incurred by Lender (including, without limitation, attorneys’ fees and expenses, and any impairment of Lender’s security
for the Loan) with respect to (and limited solely to) any of the following matters: (A) fraud or willful misrepresentation; (B) material physical waste of the Property or the Collateral caused by the willful acts of Borrower, Mortgage
Borrower or Guarantor or their respective agents, affiliates, officers or employees; (C) failure to pay property or other taxes, assessments or charges (other than amounts paid to Mortgage Lender or Lender for taxes, assessments or charges
pursuant to an impound account and where Mortgage Lender or Lender elects not to apply such funds toward payment of the taxes, assessments or charges owed) which may create liens senior to the lien of the Mortgage or the Pledge Agreement or on all
or any portion of the Property or Collateral, but only to the extent that cash flow from the operation of the Property (after payment of debt service on the Mortgage Loan and the Loan) shall be sufficient to pay such taxes, assessment or charges on
the Property when due; (D) failure to apply any insurance or condemnation proceeds or awards or any security deposits received by Borrower or Mortgage Borrower in accordance with the terms of the Loan Documents or the Mortgage Loan Documents or
which are otherwise misappropriated by Borrower; (E) failure to apply any rents, royalties, accounts, revenues, income, issues, profits and other benefits from the Property which are collected or received by Borrower or Mortgage Borrower during
the period of any Default or after acceleration of the indebtedness and other sums owing under the Loan Documents to the payment of either: (1) such indebtedness or other sums; or (2) the normal and necessary operating expenses of the
Property; or (F) the breach by Borrower, Mortgage Borrower or Guarantor of any covenant or indemnity regarding Hazardous Materials (as defined in the Indemnity Agreement) contained in any Loan Documents, Mortgage Loan Documents or any indemnity
agreement executed by Borrower, Mortgage Borrower or Guarantor in favor of Lender or Mortgage Lender in connection with the Loan (including the Indemnity Agreement), or any representation or warranty of Borrower, Mortgage Borrower or Guarantor
regarding Hazardous Materials contained in any Loan Documents or Mortgage Loan Documents, or any Hazardous Materials Indemnity Agreement proving to have been false or materially misleading when made; or (ii) in the event the Property or the
Collateral shall become an asset in: (A) a voluntary bankruptcy or insolvency proceeding; or (B) an involuntary bankruptcy or insolvency proceeding (other than one filed by Lender or Mortgage Lender) which is not dismissed within one
hundred twenty (120) days of filing and Borrower, Mortgage Borrower or Guarantor or their respective agents, affiliates, officers or employees consented to, acquiesced in, arranged or otherwise participated in bringing about the institution of
such proceeding. 
  

	 	8.8.	NOTICES. All notices, demands, or other communications under this Agreement and the other Loan Documents shall be in writing and shall be 

  

 23 

 delivered to the appropriate party at the address set forth on the signature page of this Agreement
(subject to change from time to time by written notice to all other parties to this Agreement). All notices, demands or other communications shall be considered as properly given if delivered personally or sent by first class United States Postal
Service mail, postage prepaid, except that notice of a Default may be sent by certified mail, return receipt requested, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid. Notices so sent shall be effective
three (3) days after mailing, if mailed by first class mail, and otherwise upon receipt; provided, however, that non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the
result of a refusal to accept delivery shall be deemed receipt of such communication. 
  

	 	8.9.	RELATIONSHIP OF PARTIES. The relationship of Borrower and Lender under the Loan Documents is, and shall at all times remain, solely that of borrower and lender, and
Lender neither undertakes nor assumes any responsibility or duty to Borrower or to any third party, except as expressly provided in this Agreement and the other Loan Documents. 

  

	 	8.10.	ATTORNEYS’ FEES AND EXPENSES; ENFORCEMENT. If any attorney is engaged by Lender to enforce or defend any provision of this Agreement, any of the other Loan
Documents or Other Related Documents, or as a consequence of any Default under the Loan Documents, with or without the filing of any legal action or proceeding, and including, without limitation, any fees and expenses incurred in any bankruptcy
proceeding of the Borrower, then Borrower shall immediately pay to Lender, upon demand, the amount of all attorneys’ fees and expenses and all costs incurred by Lender in connection therewith, together with interest thereon from the date of
such demand until paid at the rate of interest applicable to the principal balance of the Note as specified therein. 

  

	 	8.11.	IMMEDIATELY AVAILABLE FUNDS. Unless otherwise expressly provided for in this Agreement, all amounts payable by Borrower to Lender shall be payable only in United
States currency, immediately available funds. 

  

	 	8.12.	LENDER’S CONSENT. Wherever in this Agreement there is a requirement for Lender’s consent and/or a document to be provided or an action taken “to the
satisfaction of Lender”, it is understood by such phrase that Lender shall exercise its consent, right or judgment in a reasonable manner given the specific facts and circumstance applicable at the time. 

  

	 	8.13.	LOAN SALES AND PARTICIPATIONS; DISCLOSURE OF INFORMATION. Borrower agrees that Lender may elect, at any time, to sell, assign or grant participations in all or any
portion of its rights and obligations under the Loan Documents, and that any such sale, assignment or participation may be to one or more financial institutions, private investors, and/or other entities, at Lender’s sole discretion
(“Participant”). Borrower further agrees that 

  

 24 

 Lender may disseminate to any such actual or potential purchaser(s), assignee(s) or participant(s) all
documents and information (including, without limitation, all financial information) which has been or is hereafter provided to or known to Lender with respect to: (a) any party connected with the Loan (including, without limitation, the
Borrower, any partner, joint venturer or member of Borrower, any constituent partner, joint venturer or member of Borrower and any Guarantor); and/or (b) any lending relationship other than the Loan which Lender may have with any party
connected with the Loan. In the event of any such sale, assignment or participation, Lender and the parties to such transaction shall share in the rights and obligations of Lender as set forth in the Loan Documents only as and to the extent they
agree among themselves. In connection with any such sale, assignment or participation, Borrower further agrees that the Loan Documents shall be sufficient evidence of the obligations of Borrower to each purchaser, assignee, or participant, and upon
written request by Lender, Borrower shall enter into such amendments or modifications to the Loan Documents as may be reasonably required in order to evidence any such sale, assignment or participation. The indemnity obligations of Borrower under
the Loan Documents shall also apply with respect to any purchaser, assignee or participant. 
 Anything in this Agreement to the contrary
notwithstanding, and without the need to comply with any of the formal or procedural requirements of this Agreement, including this Section, any lender may at any time and from time to time pledge and assign all or any portion of its rights under
all or any of the Loan Documents to a Federal Reserve Bank; provided that no such pledge or assignment shall release such lender from its obligations thereunder. 
  

	 	8.14.	SEVERABILITY. If any provision or obligation under this Agreement and the other Loan Documents shall be determined by a court of competent jurisdiction to be invalid,
illegal or unenforceable, that provision shall be deemed severed from the Loan Documents and the validity, legality and enforceability of the remaining provisions or obligations shall remain in full force as though the invalid, illegal, or
unenforceable provision had never been a part of the Loan Documents, provided, however, that if the rate of interest or any other amount payable under the Note or this Agreement or any other Loan Document, or the right of
collectibility therefore, are declared to be or become invalid, illegal or unenforceable, Lender’s obligations to make advances under the Loan Documents shall not be enforceable by Borrower. 

  

	 	8.15.	NO WAIVER; SUCCESSORS. No waiver shall be implied from any failure of Lender to take, or any delay by Lender in taking, action concerning any Default or failure of
condition, or from any previous waiver of any similar or unrelated Default or failure of condition. Any waiver or approval hereunder must be in writing and shall be limited to its specific terms. The terms and provisions hereof shall bind and inure
to the benefit of the heirs, successors and assigns of the parties. 

  

 25 

	 	8.16.	TIME. Time is of the essence of each and every term of this Agreement. 

  

	 	8.17.	HEADINGS. All article, section or other headings appearing in this Agreement and any of the other Loan Documents are for convenience of reference only and shall be
disregarded in construing this Agreement and any of the other Loan Documents. 

  

	 	8.18.	GOVERNING LAW. This Agreement shall be governed by, and construed and enforced in accordance with the laws of the State of California, except to the extent preempted
by federal laws. Borrower and all persons and entities in any manner obligated to Lender under the Loan Documents consent to the jurisdiction of any federal or state court within the State of California having proper venue and also consent to
service of process by any means authorized by California or federal law. 

  

	 	8.19.	USA PATRIOT ACT NOTICE. COMPLIANCE. The USA Patriot Act of 2001 (Public Law 107-56) and federal regulations issued with respect thereto require all financial
institutions to obtain, verify and record certain information that identifies individuals or business entities which open an “account” with such financial institution. Consequently, Lender may from time-to-time request, and Borrower shall
provide to Lender, Borrower’s name, address, tax identification number and/or such other identification information as shall be necessary for Lender to comply with federal law. An “account” for this purpose may include, without
limitation, a deposit account, cash management service, a transaction or asset account, a credit account, a loan or other extension of credit, and/or other financial services product. 

  

	 	8.20.	INTEGRATION; INTERPRETATION. The Loan Documents contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters
contemplated therein and supersede all prior negotiations or agreements, written or oral. The Loan Documents shall not be modified except by written instrument executed by all parties. Any reference to the Loan Documents includes any amendments,
renewals or extensions now or hereafter approved by Lender in writing. 

  

	 	8.21.	JOINT AND SEVERAL LIABILITY. The liability of all persons and entities obligated in any manner under this Agreement and any of the Loan Documents shall be joint and
several. 

  

	 	8.22.	COUNTERPARTS. To facilitate execution, this document may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the
signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single document. It shall not be necessary in making proof of
this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the 

  

 26 

 parties hereto. Any signature page to any counterpart may be detached from such counterpart without
impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages. 
  

 27 

 IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement as of the date appearing on the first page of this
Agreement. 
 “LENDER” 
 Wells Fargo Bank, National Association 
  

			
	By:	 	 /s/ authorized signatory

 Lender’s Address: 
 Real Estate Group (AU #02955) 
 2030 Main Street, Suite 800 
 Irvine, CA 92614 
 Attn: Jeri Gehrer

 With a copy to: 
 Wells Fargo Bank, National Association 
 Disbursement and Operations Center 
 2120 East Park Place, Suite 100 
 El Segundo, CA 90245 
 Attn: Shirley Floresca 
 “BORROWER” 
  

							
	KBS REIT ACQUISITION II, LLC,
	a Delaware limited liability company,
		
	By:	 	KBS Limited Partnership,
		 	a Delaware limited partnership
		 	its sole member
			
		 	By:	 	KBS REAL ESTATE INVESTMENT TRUST, INC.
		 		 	a Maryland corporation,
		 		 	general partner
				
		 		 	By:	 	 /s/ Charles J. Schreiber, Jr.

		 		 		 	Charles J. Schreiber, Jr.
		 		 		 	Chief Executive Officer

 Borrower’s Address: 
 c/o KBS Realty Advisors 
 620 Newport Center Drive, Suite 1300 
 Newport Beach, CA 92660 
 Attn: Charles J. Schreiber, Jr. 
  

 2 

 Exhibit A 
 DOCUMENTS 
 Exhibit A to MEZZANINE LOAN AGREEMENT between KBS REIT ACQUISITION II, LLC, a Delaware limited
liability company, as “Borrower,” and Wells Fargo Bank, National Association, as “Lender,” dated as of July 6, 2006 (“Agreement”). 
  

	1.	Loan Documents. The documents listed below, numbered 1.1 through 1.13, inclusive, and amendments, modifications and supplements thereto which have received the prior written
consent of Lender, together with any documents executed in the future that are approved by Lender and that recite that they are “Loan Documents” for purposes of this Agreement are collectively referred to herein as the Loan Documents.

  

	 	1.1	This Agreement. 

  

	 	1.2	The Note of even date herewith in the original principal amount of the Loan made by Borrower payable to the order of Lender. 

  

	 	1.3	The Control Agreement of even date herewith by Borrower in favor of Lender. 

  

	 	1.4	The Indemnity Agreement of even date herewith by Borrower in favor of Lender. 

  

	 	1.5	The Pledge and Security Agreement of even date herewith by Borrower in favor of Lender. 

  

	 	1.6	Limited Liability Company Certificate of even date herewith executed by the sole member of KBS REIT Acquisition II, LLC, a Delaware limited liability company.

  

	 	1.7	Partnership or Joint Venture Certificate Authorizing The Execution of Guaranty and Endorsement and Hypothecation of Property by KBS Limited Partnership, a Delaware limited
partnership. 

  

	 	1.8	Certification of Trust of even date herewith executed on behalf of The Schreiber Trust by the Trustee(s). 

  

	 	1.9	Uniform Commercial Code Financing Statement naming Borrower as the debtor thereunder and the Lender as the secured party thereunder. 

  

	 	1.10	Corporate Resolution by KBS Real Estate Investment Trust, Inc., a Delaware corporation. 

  

	 	1.11	Mezzanine Manager’s Subordination and Agreement of even date herewith by Borrower and Manager in favor of Lender. 

  

	 	1.12	Co-Partnership, Joint Venture or Association Certificate Authorizing Limited Liability Company Activity by KBS Real Estate Investment Trust, Inc., a Delaware corporation.

  

 1 

	 	1.13	Transfer Authorizer Designation of even date herewith by Borrower in favor of Lender. 

  

	2.	Other Related Documents (Which Are Not Loan Documents): 

  

	 	2.1	Repayment Guaranty of even date herewith executed by KBS LIMITED PARTNERSHIP, a Delaware limited partnership, as Guarantor in favor of Lender. 

  

	 	2.2	Repayment Guaranty of even date herewith executed by PETER M. BREN, an individual, and LINDA BREN, an individual, as Guarantor in favor of Lender 

  

	 	2.3	Repayment Guaranty of even date herewith executed by CHARLES J. SCHREIBER, JR., an individual, JILL KALIONZES SCHREIBER, an individual, and CHARLES J. SCHREIBER, JR., as Trustee of
The Schreiber Trust, also known as The Schreiber Community Property Trust, established March 18, 1991, as amended, as Guarantor in favor of Lender. 

  

	 	2.4	Repayment Guaranty of even date herewith executed by PETER McMILLAN, an individual, and TERESA STREMPEK, an individual, as Guarantor in favor of Lender. 

  

	 	2.5	Repayment Guaranty of even date herewith executed by KEITH HALL, an individual, and TONYA HALL, an individual, as Guarantor in favor of Lender. 

  

	 	2.6	Intercreditor Agreement of even date herewith executed by Lender as Mezzanine Lender therein, and Wells Fargo Bank, National Association, as the Mortgage Lender therein.

  

 2 

 EXHIBIT B 
 TRANSFER AUTHORIZER DESIGNATION 
 (For Disbursement of Loan Proceeds by Funds Transfer)

  

									
	 ̈ NEW	  	 ̈ REPLACE PREVIOUS DESIGNATION	  	 ̈ ADD	  	 ̈ CHANGE	  	 ̈ DELETE LINE NUMBER              

 The following representatives of KBS REIT ACQUISITION II, LLC, a Delaware limited liability company
(“Borrower”) are authorized to request the disbursement of Loan Proceeds and initiate funds transfers for Loan Number
                     dated July     , 2006 between Wells Fargo Bank, National Association (“Bank”) and
Borrower. Bank is authorized to rely on this Transfer Authorizer Designation until it has received a new Transfer Authorizer Designation signed by Borrower, even in the event that any or all of the foregoing information may have changed. 

 

							
	 	  	 Name
	  	 Title
	  	 Maximum Wire
 Amount1

	1.	  		  		  	
				
	2.	  		  		  	
				
	3.	  		  		  	
				
	4.	  		  		  	
				
	5.	  		  		  	

 Beneficiary Bank and Account Holder Information 
 1. 
  

			
	Transfer Funds to (Receiving Party Account Name):	 	
		
	Receiving Party Account Number:	 	
		
	Receiving Bank Name, City and State:	 	Receiving Bank Routing (ABA) Number
		
	Maximum Transfer Amount:	 	
		
	Further Credit Information/Instructions:	 	

  

 1 

 EXHIBIT B 
 2. 
  

			
	Transfer Funds to (Receiving Party Account Name):	 	
		
	Receiving Party Account Number:	 	
		
	Receiving Bank Name, City and State:	 	Receiving Bank Routing (ABA) Number
		
	Maximum Transfer Amount:	 	
		
	Further Credit Information/Instructions:	 	
		
	3.	 	
		
	Transfer Funds to (Receiving Party Account Name):	 	
		
	Receiving Party Account Number:	 	
		
	Receiving Bank Name, City and State:	 	Receiving Bank Routing (ABA) Number
		
	Maximum Transfer Amount:	 	
		
	Further Credit Information/Instructions:	 	

	1	Maximum Wire Amount may not exceed the Loan Amount. 

 Date: July
    , 2006 
 KBS REIT ACQUISITION II, LLC, 
 a Delaware limited liability company 
  

							
	By:	 	KBS Limited Partnership,
		 	 a Delaware limited partnership
 its sole
member

			
		 	By:	 	KBS REAL ESTATE INVESTMENT TRUST, INC.
		 		 	 a Maryland corporation,
 general
partner

				
		 		 	By:	 	  

		 		 		 	Charles J. Schreiber, Jr.
		 		 		 	Chief Executive Officer

  

 2

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