Document:

Seconded Amended and Restated and Consolidated Secured Promissory Note

 Exhibit 10.34 
 SECOND AMENDED AND RESTATED AND CONSOLIDATED SECURED PROMISSORY NOTE 
  

			
	$360,000,000	 	February 8, 2011

 FOR VALUE RECEIVED, KBSII
HARTMAN BUSINESS CENTER, LLC, a Delaware limited liability company, KBSII PLANO BUSINESS PARK, LLC, a Delaware limited liability company, KBSII HORIZON TECH CENTER, LLC, a Delaware limited liability company, KBSII 2500 REGENT BOULEVARD, LLC, a
Delaware limited liability company, KBSII CRESCENT VIII, LLC, a Delaware limited liability company, KBSII NATIONAL CITY TOWER, LLC, a Delaware limited liability company, KBSII GRANITE TOWER, LLC, a Delaware limited liability company, KBSII GATEWAY
CORPORATE CENTER, LLC, a Delaware limited liability company, and KBSII I-81 INDUSTRIAL PORTFOLIO TRUST, a Delaware statutory trust (collectively, “Borrowers”), HEREBY PROMISE TO PAY to the order of WELLS FARGO BANK, NATIONAL
ASSOCIATION (“Lender”) the principal sum of Three Hundred and Sixty Million Dollars ($360,000,000), or if less, the aggregate unpaid principal amount of all disbursements disbursed by Lender pursuant to the requirements set forth in
the Amended and Restated and Consolidated Loan Agreement dated as of January 27, 2011 (as amended, supplemented or restated from time to time the “Loan Agreement”), among Borrowers, Lender, certain other Lenders named therein
or made parties thereto and Wells Fargo Bank, National Association, as Administrative Agent, together with interest on the unpaid principal balance hereof at the rate (or rates) determined in accordance with Section 2.7 of the Loan
Agreement from the date such principal is advanced until it is paid in full. It is contemplated that there will be advances and payments under this Note from time to time, but no advances or payments under this Note (including payment in full of the
unpaid balance of principal hereof prior to maturity) shall affect or impair the validity or enforceability of this Note as to future advances hereunder. 
 This Note is one of the Notes referred to in and governed by the Loan Agreement, which Loan Agreement, among other things, contains provisions for the acceleration of the maturity hereof and for the payment of
certain additional sums to Lender upon the happening of certain stated events. Capitalized terms used in this Note without definition have the same meanings as in the Loan Agreement. 

The principal amount of this Note, unless accelerated in accordance with Loan Agreement as described below, if not sooner paid, will be due and
payable, together with all accrued and unpaid interest and other amounts due and unpaid under the Loan Agreement, on the Maturity Date. 

This Note is secured by, among other things, the Security Documents referred to in the Loan Agreement. 

Interest on the Loans is payable in arrears on the first Business Day of each month during the term of the Loan Agreement, commencing with the
first Business Day of the first calendar month to begin after the date of this Note. Interest will be computed on the basis of the actual number of days elapsed in the period during which interest accrues and a year of three hundred sixty
(360) days. The Loan Agreement provides for the payment by Borrower of various other charges and fees, in addition to the interest charges described in the Loan Agreement, as set forth more fully in the Loan Agreement. 

All payments of any amount becoming due under this Note shall be made in the manner provided in the Loan Agreement, in Dollars. 

Upon and after the occurrence of a Default, unless such Default is waived as provided in the Loan Agreement, this Note may, at the option of
Requisite Lenders and without further demand, notice or legal process of any kind, be declared by Administrative Agent, and in such case immediately shall become, due and payable. Upon and after the occurrence of certain Defaults, this Note shall,
without any action by Lenders and without demand, notice or legal process of any kind, automatically and immediately become due and payable. 
 Demand, presentment, protest and notice of nonpayment and protest, notice of intention to accelerate maturity, notice of acceleration of maturity and notice of dishonor are hereby waived by

 
Borrower. Subject to the terms of the Loan Agreement, Lender may extend the time of payment of this Note, postpone the enforcement hereof, grant any indulgences, release any party primarily or
secondarily liable hereon or agree to any subordination of Borrower’s obligations hereunder without affecting or diminishing Lender’s right of recourse against Borrower, which right is hereby expressly reserved. 

This Note has been delivered and accepted at Irvine, California. This Note shall be interpreted in accordance with, and the rights and liabilities
of the parties hereto shall be determined and governed by, the laws of the State of California. 
 All notices or other communications
required or permitted to be given pursuant to this Note shall be given to the Borrowers or Lender at the address and in the manner provided for in the Loan Agreement. 
 In no contingency or event whatsoever shall interest charged in respect of the Loan evidenced hereby, however such interest may be characterized or computed, exceed the highest rate permissible under any law that a
court of competent jurisdiction shall, in a final determination, deem applicable hereto. If such a court determines that Lender has received interest hereunder in excess of the highest rate applicable hereto, Lender shall, at Lender’s election,
either (a) promptly refund such excess interest to Borrower or (b) credit such excess to the principal balance hereof. This provision shall control over every other provision of all agreements between Borrower and Lender. 

Whenever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Note shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Note. 
 The limitations on personal liability of the shareholders, partners and members of Borrowers contained in
Section 13.27 of the Loan Agreement shall apply to this Note. 
 This Note is issued in replacement of an Amended and Restated
and Consolidated Secured Promissory Note dated January 27, 2011 in the amount of $360,000,000, (the “Previous Note”) previously issued by Borrowers (excluding KBSII I-81 Industrial Portfolio Trust) to Lender pursuant to the Loan
Agreement and shall not be construed as a novation of the Previous Note. Aggregate amounts outstanding under the Previous Note shall be deemed outstanding under this Note. 
 [Signatures on Following Pages] 

 “BORROWER” 

 

													
	 KBSII HARTMAN BUSINESS CENTER, LLC,
 a
Delaware limited liability company
	  	
			
	By:	  	 KBSII REIT ACQUISITION IX, LLC,
 a
Delaware limited liability company,
 its sole member
	  	
				
		  	By:	  	 KBS REIT PROPERTIES II, LLC,
 a
Delaware limited liability company,
 its sole member
	  	
					
		  		  	By:	  	KBS LIMITED PARTNERSHIP II,	  	
		  		  		  	 a Delaware limited partnership,
 its
sole member
	  	
					
		  		  		  	By:	  	KBS REAL ESTATE INVESTMENT TRUST II, INC.,
		  		  		  		  	 a Maryland corporation,
 general
partner
	  	
						
		  		  		  		  	By:	  	/s/ Charles J. Schreiber, Jr.
		  		  		  		  		  	Charles J. Schreiber, Jr.
		  		  		  		  		  	Chief Executive Officer

  

[Signatures Continue on Next Page] 

 “BORROWER” 

 

													
	 KBSII 2500 REGENT BOULEVARD, LLC,
 a
Delaware limited liability company

		
	By:	  	KBSII REIT ACQUISITION XIII, LLC,
		  	 a Delaware limited liability company,
 its sole member

			
		  	By:	  	KBS REIT PROPERTIES II, LLC,
		  		  	 a Delaware limited liability company,

its sole member

				
		  		  	By:	  	KBS LIMITED PARTNERSHIP II,
		  		  		  	 a Delaware limited partnership,
 its
sole member

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

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

  

[Signatures Continue on Next Page] 

 “BORROWER” 

 

											
	 KBSII PLANO BUSINESS PARK, LLC,
 a
Delaware limited liability company

		
	By:	  	KBSII REIT ACQUISITION VIII, LLC,
		  	 a Delaware limited liability company,

its sole member

			
		  	By:	  	KBS REIT PROPERTIES II, LLC,
		  		  	 a Delaware limited liability company,

its sole member

				
		  		  	By:	  	KBS LIMITED PARTNERSHIP II,
		  		  		  	 a Delaware limited partnership,
 its
sole member

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

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

 [Signatures Continue on Next Page]

 “BORROWER” 

 

											
	 KBSII NATIONAL CITY TOWER, LLC,
 a
Delaware limited liability company

		
	By:	  	KBSII REIT ACQUISITION XVI, LLC,
		  	 a Delaware limited liability company,

its sole member

			
		  	By:	  	KBS REIT PROPERTIES II, LLC,
		  		  	 a Delaware limited liability company,

its sole member

				
		  		  	By:	  	KBS LIMITED PARTNERSHIP II,
		  		  		  	 a Delaware limited partnership,
 its
sole member

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

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

 [Signatures Continue on Next Page]

 “BORROWER” 

 

											
	 KBSII GATEWAY CORPORATE CENTER, LLC,

a Delaware limited liability company

		
	By:	  	KBSII REIT ACQUISITION XIX, LLC,
		  	 a Delaware limited liability company,

its sole member

			
		  	By:	  	KBS REIT PROPERTIES II, LLC,
		  		  	 a Delaware limited liability company,

its sole member

				
		  		  	By:	  	KBS LIMITED PARTNERSHIP II,
		  		  		  	 a Delaware limited partnership,
 its
sole member

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

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

 [Signatures Continue on Next Page]

 “BORROWER” 

 

											
	 KBSII GRANITE TOWER, LLC,
 a Delaware
limited liability company

		
	By:	  	KBSII REIT ACQUISITION XVIII, LLC,
		  	 a Delaware limited liability company,

its sole member

			
		  	By:	  	KBS REIT PROPERTIES II, LLC,
		  		  	 a Delaware limited liability company,

its sole member

				
		  		  	By:	  	KBS LIMITED PARTNERSHIP II,
		  		  		  	 a Delaware limited partnership,
 its
sole member

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

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

 [Signatures Continue on Next Page]

 “BORROWER” 

 

											
	 KBSII HORIZON TECH CENTER, LLC,
 a
Delaware limited liability company

		
	By:	 	KBSII REIT ACQUISITION XII, LLC,
		 	 a Delaware limited liability company,

its sole member

			
		 	By:	  	KBS REIT PROPERTIES II, LLC,
		 		  	 a Delaware limited liability company,

its sole member

				
		 		  	By:	  	KBS LIMITED PARTNERSHIP II,
		 		  		  	 a Delaware limited partnership,
 its
sole member

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

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

 [Signatures Continue on the Next
Page] 

 “BORROWER” 

 

											
	 KBSII CRESCENT VIII, LLC,
 a Delaware
limited liability company

		
	By:	 	KBSII REIT ACQUISITION XI, LLC,
		 	 a Delaware limited liability company,

its sole member

			
		 	By:	  	KBS REIT PROPERTIES II, LLC,
		 		  	 a Delaware limited liability company,

its sole member

				
		 		  	By:	  	KBS LIMITED PARTNERSHIP II,
		 		  		  	 a Delaware limited partnership,
 its
sole member

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

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

 [Signatures Continue on the Next
Page] 

													
	KBSII I-81 INDUSTRIAL PORTFOLIO TRUST,
	a Delaware Statutory Trust
		
	By:        	 	KBSII I-81 INDUSTRIAL PORTFOLIO, LLC,
		 	 a Delaware limited liability company,
 as Administrative Trustee

			
		 	By:        	 	KBSII REIT ACQUISITION XXI, LLC,
		 		 	 a Delaware limited liability company,

its sole member

				
		 		 	By:        	 	KBS REIT PROPERTIES II, LLC,
		 		 		 	 a Delaware limited liability company,

its sole member

					
		 		 		 	By:        	 	KBS LIMITED PARTNERSHIP II,
		 		 		 		 	 a Delaware limited partnership,
 its
sole member

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

							
		 		 		 		 		 	By:        	 	/s/ Charles J. Schreiber, Jr.
		 		 		 		 		 		 	Charles J. Schreiber, Jr.
		 		 		 		 		 		 	Chief Executive OfficerOpen-Ended Mortgage (Alberigi Drive)

 Exhibit 10.35 
  

 
  
  

 
 OPEN-END MORTGAGE 

WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS, 
 SECURITY AGREEMENT AND FIXTURE FILING 
 BY 

KBSII I-81 INDUSTRIAL PORTFOLIO TRUST, 
 A Delaware Statutory Trust, 
 as Mortgagor, 

TO 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION, 
 as Mortgagee 
 Dated as of February 8, 2011 
 THIS IS AN OPEN-END MORTGAGE AND SECURES FUTURE ADVANCES.
THE MAXIMUM PRINCIPAL AMOUNT SECURED BY THIS INSTRUMENT IS SUCH AMOUNT AS MAY BE DUE AND OWING ON THE NOTE DESCRIBED HEREIN NOT TO EXCEED $372,000,000 PLUS ALL OTHER COSTS AND INDEBTEDNESS DESCRIBED IN 42 Pa. C.S. §8143 

RECORDING REQUESTED BY 
 AND WHEN RECORDED MAIL TO:

 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 Real Estate
Group (AU #02955) 
 2030 Main Street, Suite 800 
 Irvine,
CA 92614 
 Attn: Jeri Gehrer 
 Loan No. 1002835

 THIS INSTRUMENT PREPARED BY: 
 Mark Appelbaum

 Jones Day 
 555 California Street,
26th floor 
 San Francisco, CA 94104 
 Tax Parcel Numbers: 12602-010-00103 and 12602-010-00104 

 THE PARTIES TO THIS OPEN-END MORTGAGE WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT
AND FIXTURE FILING (“Mortgage”), dated as of the 8th day of February, 2011, but intended to be effective as of February 16, 2011, are KBSII I-81 INDUSTRIAL PORTFOLIO TRUST, a Delaware statutory trust (“Mortgagor”), for the
benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for itself and certain additional lenders (“Mortgagee”). 
 ARTICLE 1. GRANT 
  

	 	1.1	 GRANT. For the purposes of and upon the terms and conditions in this Mortgage, Mortgagor irrevocably grants, conveys, assigns and mortgages to
Mortgagee and its successors and assigns forever all of that real property located in the Borough of Jessup, County of Lackawanna, Commonwealth of Pennsylvania, described on Exhibit A attached hereto, together with all right, title, interest,
and privileges of Mortgagor in and to all streets, ways, roads, and alleys used in connection with or pertaining to such real property and any improvements thereon, all development rights or credits, air rights, water, water rights and water stock
related to the real property, all timber, and all minerals, oil and gas, and other hydrocarbon substances in, on or under the real property, and all licenses, appurtenances, reversions, remainders, easements, rights and rights of way appurtenant or
related thereto; and any and all rights of Mortgagor, as a declarant, under any covenants, conditions, and restrictions now or hereafter pertaining to the real property described on Exhibit A, hereto, provided, however, that
Mortgagee shall have no liability under such covenants, conditions, and restrictions unless and until Mortgagee forecloses on the real property; all buildings, other improvements and fixtures now or hereafter located on the real property, including,
but not limited to, all apparatus, equipment, and appliances used in the operation or occupancy of the real property, it being intended by the parties that all such items shall be conclusively considered to be a part of the real property, whether or
not attached or affixed to the real property (the “Improvements”); all interest or estate which Mortgagor may hereafter acquire in the property described above, and all additions and accretions thereto, and the proceeds of any of the
foregoing; (all of the foregoing being collectively referred to as the “Subject Property”). The listing of specific rights or property shall not be interpreted as a limit of general terms. 

TO HAVE AND TO HOLD the Subject Property, together with the Collateral (as hereinafter defined) and all the rights, easements,
profits and appurtenances and other property described above, together with all proceeds, products, replacements, additions, substitutions and renewals to or of any or all of the foregoing belonging unto and to the use of the Mortgagee, its
successors and assigns, in fee simple forever; 
 PROVIDED, ALWAYS, that if Mortgagor shall pay unto Mortgagee the
principal of and interest on the Note, when and as the same shall become due and payable whether by acceleration or otherwise, and shall pay all Secured Obligations (as hereinafter defined), and performs all obligations on its behalf contained in
this Mortgage, the Loan Agreement (as such terms are defined below) or any of the other documents evidencing any of the Secured Obligations, then and in that case, the Subject Property and the Collateral hereby conveyed and all rights and interests
therein and thereto shall revert to Mortgagor and the estate, right, title and interest of Mortgagee therein shall thereupon cease, determine and become void and in such case Mortgagee shall execute and deliver to Mortgagor at Mortgagor’s cost,
an appropriate release and discharge of this Mortgage in form to be recorded. 
  

	 	1.2	 ADDRESS.    The address of the Subject Property is: 14-46 Alberigi Drive, Jessup, Pennsylvania. However, neither the failure
to designate an address nor any inaccuracy in the address designated shall affect the validity or priority of the lien of this Mortgage on the Subject Property as described on Exhibit A. 

  
 1 

 ARTICLE 2. OBLIGATIONS SECURED 

 

	 	2.1	 OBLIGATIONS SECURED. Mortgagor makes this Mortgage for the purpose of securing the following obligations (“Secured Obligations”):

  

	 	(a)	 Payment to Lenders (as defined in the Loan Agreement) of all sums at any time owing under one or more secured promissory notes (initially dated
January 27, 2011, and maturing on January 27, 2016 (subject to extension in accordance with the Loan Agreement referenced below)) made in the aggregate principal amount of Three Hundred and Sixty Million Dollars ($360,000,000) (the
“Loan”) executed by Mortgagor and certain other parties, as borrowers (“Borrowers”), from time to time in connection with the Loan Agreement, and payable to the order of one or more Lenders, including, without limitation
(i) any replacement Note executed pursuant to Section 2.15 of the Loan Agreement in connection with an increase of the Loan to a maximum principal amount of Three Hundred and Seventy-Two Million Dollars ($372,000,000) and (ii) any
replacement Note executed pursuant to Section 3.4 of the Loan Agreement in connection with the joinder of additional Borrowers to the Loan Agreement including, without limitation, that certain Second Amended and Restated and Consolidated
Secured Promissory Note of even date herewith (collectively, as the same may be amended, restated or replaced from time to time, the “Note”); and 

 

	 	(b)	 Payment and performance of all covenants and obligations of Mortgagor under this Mortgage; and 

 

	 	(c)	 Payment and performance of all covenants and obligations on the part of Borrowers under that certain Amended and Restated and Consolidated Loan Agreement (as
the same may be amended, restated or replaced from time to time, “Loan Agreement”), dated January 27, 2011, by and among Borrowers, Mortgagee, and Lenders (as defined in the Loan Agreement), the Hazardous Materials Indemnity Agreement
(as defined in the Loan Agreement), and all other “Loan Documents” as defined in the Loan Agreement; and 

  

	 	(d)	 Payment and performance of all covenants and obligations, if any, of any rider attached as an Exhibit to this Mortgage; and 

 

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

 

	 	(f)	 Payment and performance of all covenants and obligations of Borrowers (or any of them) under (i) the Existing Swap and (ii) any other Swap Agreement
(as such terms are defined in the Loan Agreement, which agreement is evidenced by a writing that recites it is secured by this Deed of Trust; and 

  

	 	(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; or (ii) modifications, extensions or renewals at a different rate of interest whether or
not in the case of a note, the modification, extension or renewal is evidenced by a new or additional promissory note or notes. 

  
 2 

	 	2.2	 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 (if any), late charges and loan fees at any time accruing or assessed on any of the Secured Obligations. 

 

	 	2.3	 INCORPORATION. All capitalized terms not defined herein shall have the meanings given to them in the Loan Agreement. All terms of the Secured
Obligations and the documents evidencing such obligations are incorporated herein by this reference. All persons who may have or acquire an interest in the Subject Property shall be deemed to have notice of the terms of the Secured Obligations and
to have notice, if provided therein, that: (a) the Note or the Loan Agreement may permit borrowing, repayment and re-borrowing so that repayments shall not reduce the amounts of the Secured Obligations; and (b) the rate of interest on one
or more Secured Obligations may vary from time to time. 

 ARTICLE 3. ASSIGNMENT OF LEASES AND RENTS 

 

	 	3.1	 ASSIGNMENT. Mortgagor hereby irrevocably assigns to Mortgagee all of Mortgagor’s right, title and interest in, to and under: (a) all
leases of the Subject Property or any portion thereof, and all other agreements of any kind relating to the use or occupancy of the Subject Property or any portion thereof, whether now existing or entered into after the date hereof
(“Leases”); and (b) the rents, revenue, income, issues, deposits and profits of the Subject Property, including, without limitation, all parking income and 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 lessees’ 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 Subject Property.

 Nothing contained in this Mortgage is intended to diminish, alter, impair, or affect any other
rights and remedies of Mortgagee, including but not limited to, the appointment of a receiver, nor shall any provision in this section diminish, alter, impair or affect any rights or powers of the receiver in law or equity or as set forth herein. In
addition, this assignment shall be fully operative without regard to value of the Subject Property or without regard to the adequacy of the Subject Property to serve as security for the obligations owed by Mortgagor to Mortgagee, and shall be in
addition to any rights at law or in equity. Further, except for the notices required hereunder, if any, Mortgagor hereby waives any notice of default or demand for turnover of rents by Mortgagee, together with any rights, if any, to apply to a court
to deposit the Payments into the registry of the court or such other depository as the court may designate. 
  

	 	3.2	 GRANT OF LICENSE. Mortgagee confers upon Mortgagor a 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 Section 6.4 without notice and without taking
possession of the Subject Property. Mortgagor hereby irrevocably authorizes and directs the lessees 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 lessees’ undertakings under the Leases, and the lessees shall have no right or duty to inquire as to whether any Default has actually occurred or is then existing
hereunder. Mortgagor hereby relieves the lessees from any liability to Mortgagor by reason of relying upon and complying with any such notice or demand by Mortgagee. Furthermore, upon any Default and

  
 3 

	 	 
revocation of the License as aforesaid, Mortgagee shall be entitled to receive and Mortgagor covenants to deliver immediately to Mortgagee, upon demand, any and all payments theretofore collected
by Mortgagor which remain in the possession or control of Mortgagor, whether or not commingled with other funds of Mortgagor, and to the extent such Payments have not been delivered, the Payments shall be held in trust from Mortgagee.

  

	 	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 Subject Property or for performing any of the terms, agreements, undertakings, obligations, representations, warranties, covenants and conditions of the Leases; or
(c) responsible or liable for any waste committed on the Subject Property by the lessees under any of the Leases or any other parties; for any dangerous or defective condition of the Subject Property; or for any negligence in the management,
upkeep, repair or control of the Subject Property resulting in loss or injury or death to any lessee, licensee, employee, invitee or other person. Mortgagee shall not directly or indirectly be liable to Mortgagor or any other person as a consequence
of: (i) the exercise or failure to exercise by Mortgagee, or any of its respective employees, agents, contractors or subcontractors, any of the rights, remedies or powers granted to Mortgagee hereunder; or (ii) the failure or refusal of
Mortgagee to perform or discharge any obligation, duty or liability of Mortgagor arising under the Leases. 

  

	 	3.4	 REPRESENTATIONS AND WARRANTIES. Mortgagor represents and warrants that, to the best of Mortgagor’s knowledge: (a) Mortgagor has
delivered to Mortgagee a rent roll that, as of the date hereof, contains a true, accurate and complete list of all Leases; (b) all existing Leases are in full force and effect and are enforceable in accordance with their respective terms, and
no breach or default, or event which would constitute a breach or default after notice or the passage of time, or both, exists under any existing Leases on the part of any party; (c) no rent or other payment under any existing Lease has been
paid by any lessee for more than one (1) month in advance; and (d) none of the lessor’s interests under any of the Leases has been transferred or assigned. 

 

	 	3.5	 COVENANTS. Mortgagor covenants and agrees at Mortgagor’s sole cost and expense to: (a) perform the obligations of lessor contained in
the Leases and enforce by all appropriate remedies performance by the lessees of the obligations of the lessees contained in the Leases; (b) give Mortgagee prompt written notice of any material default which occurs with respect to any of the
Leases, whether the default be that of the lessee or of the lessor; (c) exercise Mortgagor’s best efforts to keep all portions of the Subject Property that are capable of being leased leased at rental rates pursuant to the terms of the
Loan Agreement; (d) deliver to Mortgagee fully executed, copies of each and every Lease that it is required to deliver in accordance with the Loan Agreement; and (e) execute and record such additional assignments of any Lease or, if
required by the terms of the Loan Agreement, use commercially reasonable efforts to obtain specific subordinations (or subordination, attornment and non-disturbance agreements executed by the lessor and lessee) of any Lease to the Mortgage, in form
and substance acceptable to Mortgagee, as Mortgagee may request. Mortgagor shall not, without Mortgagee’s prior written consent or as otherwise permitted by any provision of the Loan Agreement: (i) to the extent prohibited by the terms of
the Loan Agreement, enter into any Leases after the date hereof; (ii) execute any other assignment relating to any of the Leases; (iii) to the extent prohibited by the terms of the Loan Agreement, discount any rent or other sums due under
the Leases or collect the same in advance, other than to collect rentals one (1) month in advance of the time when it becomes due; (iv) to the extent prohibited by the terms of the Loan Agreement, terminate, modify or amend any of the
terms of the Leases or in any manner release or discharge the lessees from any obligations thereunder; (v) to the extent prohibited by the terms of the Loan Agreement, consent to any assignment or subletting by any lessee; or
(vi) subordinate or 

  
 4 

	 	 
agree to subordinate any of the Leases to any other mortgage or encumbrance. Any such attempted action in violation of the provisions of this Section 3.5 shall be null and void.
Without in any way limiting the requirement of Mortgagee’s consent hereunder, any sums received by Mortgagor in consideration of any termination (or the release or discharge of any lessee) modification or amendment of any Lease shall be applied
as set forth in the Loan Agreement. 

  

	 	3.6	 ESTOPPEL CERTIFICATES. Within thirty (30) days after written request by Mortgagee, Mortgagor shall deliver to Mortgagee and to any party
designated by Mortgagee estoppel certificates executed by Mortgagor, and use its best efforts to obtain such estoppel certificates executed by each of the lessees, in each case in recordable form, certifying (if such be the case): (a) that the
foregoing assignment and the Leases are in full force and effect; (b) the date of each lessee’s most recent payment of rent; (c) that there are no defenses or offsets outstanding, or stating those claimed by Mortgagor or lessees under
the foregoing assignment or the Leases, as the case may be; and (d) any other information reasonably requested by Mortgagee. 

 ARTICLE 4. SECURITY AGREEMENT AND FIXTURE FILING 
  

	 	4.1	 SECURITY INTEREST. Mortgagor hereby grants and assigns to Mortgagee as of the date hereof 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 (collectively, the “Collateral”): 

All goods, building and other materials, supplies, work in process, equipment, machinery, fixtures, furniture,
furnishings, signs and other personal property and embedded software included therein, wherever situated, which are or are to be incorporated into, used in connection with, or appropriated for use on (i) the real property described on
Exhibit A attached hereto and incorporated by reference herein (to the extent the same are not effectively made a part of the real property pursuant to Section 1.1 above) or (ii) the Improvements; together with all rents (to the
extent, if any, they are not subject to Article 3); all inventory, accounts, cash receipts, deposit accounts, accounts receivable, contract rights, licenses, agreements, (including, without limitation, all acquisition agreements with respect to the
Subject Property); all of Mortgagor’s rights under any Swap Agreement, including, without limitation, the Existing Swap; all Contracts referenced in Section 5.16 below (including property management and leasing agreements),
architects’ agreements, and/or construction agreements with respect to the completion of any improvements on the Subject Property), general intangibles, chattel paper (whether electronic or tangible), 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 ownership, management, leasing or operation of the Subject 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 Subject Property; all deposits or other security now or hereafter made with or given to utility companies by Mortgagor with respect to the Subject Property; all advance payments of insurance
premiums made by Mortgagor with respect to the Subject Property; all plans, drawings and specifications relating to the Subject Property; all loan funds held by Mortgagee, whether or not disbursed; all funds deposited with Mortgagee pursuant to any
loan agreement; all reserves, deferred payments, deposits, accounts, refunds, cost savings and payments of any kind related to the Subject Property or any portion 

  
 5 

 
thereof; together with all replacements and proceeds of, and additions and accessions to, any of the foregoing; together with all books, records and files to the extent relating to any of the
foregoing. 
 As to all of the above described personal property which is or which hereafter becomes a
“fixture” under applicable law, this Mortgage constitutes a fixture filing under the Pennsylvania Uniform Commercial Code, as amended or recodified from time to time (“UCC”), and is acknowledged and agreed to be a
“mortgage” under the UCC. 
 Security Agreement. THIS MORTGAGE IS TO BE FILED AND
RECORDED IN, AMONG OTHER PLACES, THE REAL ESTATE RECORDS OF THE COUNTY IN WHICH THE PROPERTY IS LOCATED AND THE FOLLOWING INFORMATION IS INCLUDED: (1) THE MORTGAGOR SHALL BE DEEMED TO BE THE “DEBTOR” WITH AN ADDRESS OF: 620 NEWPORT
CENTER DRIVE, SUITE 1300, NEWPORT BEACH, CA 92660, WHICH THE MORTGAGOR CERTIFIES IS ACCURATE; (2) THE MORTGAGEE SHALL BE DEEMED TO BE THE “SECURED PARTY” WITH THE ADDRESS OF: 2030 MAIN STREET, SUITE 800, IRVINE, CA 92614, AND SHALL
HAVE ALL OF THE RIGHTS OF A SECURED PARTY UNDER THE UCC; (3) THIS MORTGAGE COVERS GOODS WHICH ARE OR ARE TO BECOME FIXTURES; (4) THE NAME OF THE RECORD OWNER OF THE LAND IS THE MORTGAGOR; (F) THE ORGANIZATIONAL IDENTIFICATION NUMBER
OF THE MORTGAGOR IS 4936754; (6) THE MORTGAGOR IS A STATUTORY TRUST, ORGANIZED UNDER THE LAWS OF THE STATE OF DELAWARE; AND (7) THE LEGAL NAME OF THE MORTGAGOR IS KBSII I-81 INDUSTRIAL PORTFOLIO TRUST. 

This Mortgage creates a security interest in the Collateral, and, to the extent the Collateral is not real
property, this Mortgage constitutes a security agreement from Mortgagor to Mortgagee under the UCC. 
  

	 	4.2	 REPRESENTATIONS AND WARRANTIES. Mortgagor represents and warrants that: (a) Mortgagor has, as of the date of recordation of this Mortgage,
and will have good title to the Collateral; (b) Mortgagor has not previously assigned or encumbered the Collateral, and no financing statement covering any of the Collateral has been delivered to any other person or entity;
(c) Mortgagor’s principal place of business is located at the address shown in Section 7.11; and (d) Mortgagor’s legal name is exactly as set forth on the first page of this Mortgage and all of Mortgagor’s
organizational documents or agreements delivered to Mortgagee are complete and accurate in every respect. 

  

	 	4.3	 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 office, its principal residence or the jurisdiction in which it is organized and/or registered without giving Mortgagee prior written
notice thereof; (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 its rights hereunder; and (d) that Mortgagee is authorized to file financing statements in the name of Mortgagor to perfect Mortgagee’s security interest in Collateral. 

 

	 	4.4	 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 

  
 6 

	 	 
enforce such rights at law or in equity; (b) insure, protect, defend and preserve the Collateral or any rights or interests of Mortgagee therein; (c) inspect the Collateral; and
(d) endorse, collect and receive any right to payment of money owing to Mortgagor under or from 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 UCC §9620, or other applicable law. 

 

	 	4.5	 RIGHTS OF MORTGAGEE ON DEFAULT. Upon the occurrence and during the continuance of a Default (hereinafter defined) under this Mortgage, then in
addition to all of Mortgagee’s rights as a “Secured Party” under the UCC or otherwise at law, and subject to applicable law: 

  

	 	(a)	 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 Subject Property or other place where any of the Collateral may be located and take possession of, collect, sell, lease, license and dispose of any or all of the Collateral, and
store the same at locations acceptable to Mortgagee at Mortgagor’s expense; (iii) sell, assign and deliver at any place or in any lawful manner all or any part of the Collateral and bid and become the purchaser at any such sales;

  

	 	(b)	 Mortgagee may, for the account of Mortgagor and at Mortgagor’s expense: (i) operate, use, consume, sell, lease, license or 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 any of 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 any or all of the Collateral; and 

  

	 	(c)	 In disposing of Collateral hereunder, Mortgagee may disclaim all warranties of title, possession, quiet enjoyment and the like. Any proceeds of any
disposition of any Collateral may be applied by Mortgagee to the payment of expenses incurred by Mortgagee in connection with the foregoing, including reasonable attorneys’ fees, and the balance of such proceeds may be applied by Mortgagee
toward the payment of the Secured Obligations in such order of application as Mortgagee may from time to time elect. 

 Notwithstanding any other provision hereof, Mortgagee shall not be deemed to have accepted any property other than cash in satisfaction of any obligation of Mortgagor to Mortgagee unless Mortgagor shall make an
express written election of said remedy under UCC §9621, or other applicable law, and the provisions of UCC §9620 have been satisfied. Mortgagor agrees that Mortgagee shall have no obligation to process or prepare any Collateral for sale
or other disposition. 
  

	 	4.6	 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 and file or 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 any of the Collateral, and, upon a Default hereunder, take any other action required of Mortgagor; provided,
however, 

  
 7 

	 	 
that Mortgagee as such attorney-in-fact shall be accountable only for such funds as are actually received by Mortgagee. 

 

	 	4.7	 POSSESSION AND USE OF COLLATERAL. Except as otherwise provided in this Section or the other Loan Documents (as defined in the Loan Agreement),
so long as no Default exists under this Mortgage or any of the Loan Documents, Mortgagor may possess, use, move, transfer or dispose of any of the Collateral in the ordinary course of Mortgagor’s business and in accordance with the Loan
Agreement. 

 ARTICLE 5. RIGHTS AND DUTIES OF THE PARTIES 

 

	 	5.1	 TITLE. Mortgagor represents and warrants that, except as disclosed to Mortgagee in a writing which refers to this warranty and the Permitted
Liens, Mortgagor lawfully holds and possesses fee simple title to the Subject Property without limitation on the right to encumber, and that this Mortgage is a first and prior lien on the Subject Property. Mortgagor hereby represents and warrants
that all of the Subject Property is one or more tax parcels, and there are no properties included in such tax parcels other than the Subject Property. Mortgagor further covenants and agrees that it shall not cause all or any portion of the Subject
Property to be replatted or for any lots or boundary lines to be adjusted, changed or altered for either ad valorem tax purposes or otherwise, and shall not consent to the assessment of the Subject Property in more than one tax parcel or in
conjunction with any property other than the Subject Property. 

  

	 	5.2	 TAXES AND ASSESSMENTS. 

  

	 	(a)	 Subject to Mortgagor’s rights to contest in good faith payment of taxes as provided in Section 5.2(b) below, Mortgagor shall pay prior to
delinquency all taxes, assessments, levies and charges imposed by any public or quasi-public authority or utility company which are or which may become a lien upon or cause a loss in value of the Subject Property or any interest therein. Mortgagor
shall also pay prior to delinquency all taxes, assessments, levies and charges imposed by any public authority upon Mortgagee by reason of its interest in any Secured Obligation or in the Subject Property, or by reason of any payment made to
Mortgagee pursuant to any Secured Obligation; provided, however, Mortgagor shall have no obligation to pay taxes which may be imposed from time to time upon Mortgagee and which are measured by and imposed upon Mortgagee’s net
income. 

  

	 	(b)	 Mortgagor may contest in good faith any taxes or assessments if: (i) Mortgagor pursues the contest diligently and in compliance with applicable laws, in
a manner which Mortgagee determines is not prejudicial to Mortgagee, and does not impair the rights of Mortgagee under any of the Loan Documents; and (b) Mortgagor deposits with Mortgagee any funds or other forms of assurance which Mortgagee in
good faith determines from time to time appropriate to protect Mortgagee from the consequences of the contest being unsuccessful. Mortgagor’s compliance with this Section shall operate to prevent such claim, demand, levy or assessment from
becoming a Default. 

  

	 	5.3	 TAX AND INSURANCE IMPOUNDS. At any time following the occurrence of a Default, at Mortgagee’s option and upon its demand, Mortgagor, shall,
until all Secured Obligations have been paid in full, pay to Mortgagee monthly, annually or as otherwise directed by Mortgagee an amount estimated by Mortgagee to be equal to: (a) all taxes, assessments, levies and charges imposed by any public
or quasi-public authority or utility company which are or may become a lien upon the Subject Property or Collateral and will become due for the tax year during which such payment is so directed; and (b) premiums for fire, hazard and

  
 8 

	 	 
insurance required or requested pursuant to the Loan Documents when same are next due. If Mortgagee determines that any amounts paid by Mortgagor are insufficient for the payment in full of such
taxes, assessments, levies, charges and/or insurance premiums, Mortgagee shall notify Mortgagor of the increased amounts required to pay all amounts when due, whereupon Mortgagor shall pay to Mortgagee within thirty (30) days thereafter the
additional amount as stated in Mortgagee’s notice. All sums so paid shall not bear interest, except to the extent and in any minimum amount required by law; and Mortgagee shall, unless Mortgagor is otherwise in Default hereunder or under any
Loan Document, apply said funds to the payment of, or at the sole option of Mortgagee release said funds to Mortgagor for the application to and payment of, such sums, taxes, assessments, levies, charges, and insurance premiums. Upon Default by
Mortgagor hereunder or under any Loan Document, Mortgagee may apply all or any part of said sums to any Secured Obligation and/or to cure such Default, in which event Mortgagor shall be required to restore all amounts so applied, as well as to cure
any other events or conditions of Default not cured by such application. Upon assignment of this Mortgage, Mortgagee shall have the right to assign in writing all amounts collected and in its possession to its assignee whereupon Mortgagee shall be
released from all liability with respect thereto. Within ninety-five (95) days following full repayment of the Secured Obligations (other than full repayment of the Secured Obligations as a consequence of a foreclosure or conveyance in lieu of
foreclosure of the liens and security interests securing the Secured Obligations) or at such earlier time as Mortgagee may elect, the balance of all amounts collected and in Mortgagee’s possession shall be paid to Mortgagor and no other party
shall have any right or claim thereto. 

  

	 	5.4	 PERFORMANCE OF SECURED OBLIGATIONS. Mortgagor shall promptly pay and perform each Secured Obligation when due. 

 

	 	5.5	 LIENS, ENCUMBRANCES AND CHARGES. Mortgagor shall immediately discharge any lien not permitted under the Loan Documents or approved by Mortgagee
in writing that has or may attain priority over this Mortgage. Subject to the following sentence, Mortgagor shall pay when due all obligations secured by or which may become liens and encumbrances which shall now or hereafter encumber or appear to
encumber all or any part of the Subject Property or Collateral, or any interest therein, whether senior or subordinate hereto. If a claim of lien is recorded which affects the Subject Property or a bonded stop notice is served upon Mortgagee,
Mortgagor shall, within twenty (20) calendar days of such recording or service or within five (5) calendar days of Mortgagee’s demand, whichever occurs first: (a) pay and discharge the claim of lien or bonded stop notice;
(b) effect the release thereof by recording or delivering to Mortgagee a surety bond in sufficient form and amount; or (c) provide Mortgagee with other assurances which Mortgagee deems, in its sole discretion, to be satisfactory for the
payment of such claim of lien or bonded stop notice and for the full and continuous protection of Mortgagee from the effect of such lien or bonded stop notice. 

 

	 	5.6	 DAMAGES; INSURANCE AND CONDEMNATION PROCEEDS. 

 

	 	(a)	 The following (whether now existing or hereafter arising) are all absolutely and irrevocably assigned by Mortgagor to Mortgagee and, at the request of
Mortgagee, shall be paid directly 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 Subject Property or Collateral; (ii) all other claims and awards for damages to, or decrease in value of, all or any part of, or any interest in, the Subject Property or Collateral; (iii) all proceeds of any insurance
policies (whether or not expressly required by Mortgagee to be maintained by Mortgagor, including, without limitation, earthquake insurance, environmental insurance and terrorism insurance, if any) payable by reason of loss sustained to all or any
part of the Subject Property or 

  
 9 

	 	 
Collateral; and (iv) all interest which may accrue on any of the foregoing. Subject to applicable law and Section 5.6(b) below, and without regard to any requirement contained in
Section 5.7(d), Mortgagee may at its discretion apply all or any of the proceeds it receives to its expenses in settling, prosecuting or defending any claim and may apply the balance to the Secured Obligations in any such order
acceptable to Mortgagee, and/or Mortgagee may release all or any part of the proceeds to Mortgagor upon any conditions Mortgagee may impose. Mortgagee may commence, appear in, defend or prosecute any assigned claim or action and may adjust,
compromise, settle and collect all claims and awards assigned to Mortgagee; provided, however, in no event shall Mortgagee be responsible for any failure to collect any claim or award, regardless of the cause of the failure, including,
without limitation, any malfeasance or nonfeasance by Mortgagee or its employees or agents. 

  

	 	(b)	 Mortgagee shall permit insurance or condemnation proceeds held by Mortgagee to be used for repair or restoration but may condition such application upon
reasonable conditions, including, without limitation: (i) the deposit with Mortgagee of such additional funds which Mortgagee determines are needed to pay all costs of the repair or restoration, (including, without limitation, taxes, financing
charges, insurance and rent during the repair period); (ii) the establishment of an arrangement for lien releases and disbursement of funds acceptable to Mortgagee; (iii) the delivery to Mortgagee of plans and specifications for the work,
a contract for the work signed by a contractor acceptable to Mortgagee, a cost breakdown for the work and a payment and performance bond for the work, all of which shall be acceptable to Mortgagee; and (iv) the delivery to Mortgagee of evidence
acceptable to Mortgagee (aa) that after completion of the work the income from the Subject Property will be sufficient to pay all expenses and debt service for the Subject Property; (bb) of the continuation of Leases acceptable to and required by
Mortgagee; (cc) that upon completion of the work, the size, capacity and total value of the Subject Property will be at least as great as it was before the damage or condemnation occurred; (dd) that there has been no material adverse change in the
financial condition or credit of Mortgagor since the date of this Mortgage; (ee) no Default shall have occurred, and (ff) of the satisfaction of any additional conditions that Mortgagee may reasonably establish to protect its security. Mortgagor
hereby acknowledges that the conditions described above are reasonable, and, if such conditions have not been satisfied within sixty (60) days of receipt by Mortgagee of such insurance or condemnation proceeds, then Mortgagee may apply such
insurance or condemnation proceeds to pay the Secured Obligations in such order and amounts as Mortgagee in its sole discretion may choose. 

  

	 	(c)	 Notwithstanding the foregoing provisions of this Section 5.6, if the insurance or condemnation proceeds equal $1,000,000 or less, Mortgagee shall
release such proceeds to Mortgagor for repair or restoration of the Subject Property without any additional requirements or conditions. 

  

	 	5.7	 MAINTENANCE AND PRESERVATION OF THE SUBJECT PROPERTY. Subject to the provisions of the Loan Agreement, Mortgagor covenants: (a) to insure
the Subject Property and Collateral against such risks as Mortgagee may require pursuant to the Loan Agreement and, at Mortgagee’s request (but not more than fifteen (15) days prior to the termination date of any existing coverage), to
provide evidence of such insurance to Mortgagee, and to comply with the requirements of any insurance companies providing such insurance; (b) to keep the Subject Property and Collateral in good condition and repair; (c) not to remove or
demolish the Subject Property or Collateral or any part thereof, not to alter, restore or add to the Subject Property or Collateral and not to initiate or acquiesce in any change in any

  
 10 

	 	 
zoning or other land classification which affects the Subject Property without Mortgagee’s prior written consent or as provided in the Loan Agreement; (d) to complete or restore
promptly and in good and workmanlike manner the Subject Property and Collateral, or any part thereof which may be damaged or destroyed, without regard to whether Mortgagee elects to require that insurance proceeds be used to reduce the Secured
Obligations as provided in Section 5.6; (e) to comply with all laws, ordinances, regulations and standards, and all covenants, conditions, restrictions and equitable servitudes, whether public or private, of every kind and character
which affect the Subject Property or Collateral and pertain to acts committed or conditions existing thereon, including, without limitation, any work, alteration, improvement or demolition mandated by such laws, covenants or requirements;
(f) not to commit or permit waste of the Subject Property or Collateral; and (g) to do all other acts which from the character or use of the Subject Property or Collateral may be reasonably necessary to maintain and preserve its value.

  

	 	5.8	 DEFENSE AND NOTICE OF LOSSES, CLAIMS AND ACTIONS. At Mortgagor’s sole expense, Mortgagor shall protect, preserve and defend the Subject
Property and Collateral and title to and right of possession of the Subject Property and Collateral, the security hereof and the rights and powers of Mortgagee hereunder against all adverse claims. 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 Subject Property or Collateral and of any condemnation offer or action. 

 

	 	5.9	 ACTIONS BY MORTGAGEE. From time to time and without affecting the personal liability of any person for payment of any indebtedness or
performance of any obligations secured hereby, Mortgagee, without liability thereof and without notice, may: (a) release all or any part of the Subject Property from this Mortgage; (b) consent to the making of any map or plat thereof; and
(c) join in any grant of easement thereon, any declaration of covenants and restrictions, or any extension agreement or any agreement subordinating the lien or charge of this Mortgage. 

 

	5.10	 COMPENSATION; EXCULPATION; INDEMNIFICATION. 

  

	 	(a)	 Mortgagor shall pay to Mortgagee reasonable compensation for services rendered concerning this Mortgage, including without limit any statement of amounts
owing under any Secured Obligation. Mortgagee shall not directly or indirectly be liable to Mortgagor or any other person as a consequence of (i) the exercise of the rights, remedies or powers granted to Mortgagee in this Mortgage;
(ii) the failure or refusal of Mortgagee to perform or discharge any obligation or liability of Mortgagor under any agreement related to the Subject Property or Collateral or under this Mortgage; or (iii) any loss sustained by Mortgagor or
any third party resulting from Mortgagee’s failure (whether by malfeasance, nonfeasance or refusal to act) to lease the Subject Property after a Default (hereinafter defined) or from any other act or omission (regardless of whether same
constitutes negligence) of Mortgagee in managing the Subject Property after a Default unless the loss is caused by the gross negligence or willful misconduct of Mortgagee and no such liability shall be asserted against or imposed upon Mortgagee, and
all such liability is hereby expressly waived and released by Mortgagor. 

  

	 	(b)	 Mortgagor indemnifies Mortgagee against, and holds Mortgagee harmless from, all losses, damages, liabilities, claims, causes of action, judgments, court
costs, attorneys’ fees and other legal expenses, cost of evidence of title, cost of evidence of value, and other expenses which it may suffer or incur: (i) by reason of this Mortgage; (ii) by reason of the execution of this Mortgage
or in performance of any act required or permitted hereunder or by law; (iii) as a result of any failure of Mortgagor to 

  
 11 

	 	 
perform Mortgagor’s obligations; or (iv) by reason of any alleged obligation or undertaking on Mortgagee’s part to perform or discharge any of the representations, warranties,
conditions, covenants or other obligations contained in any other document related to the Subject Property. The above obligation of Mortgagor to indemnify and hold harmless Mortgagee shall survive the release and cancellation of the Secured
Obligations and the release of this Mortgage. 

  

	 	(c)	 Mortgagor shall pay all amounts and indebtedness arising under this Section 5.10 immediately upon demand by Mortgagee together with interest thereon from
the date the indebtedness arises at the rate of interest then applicable to the principal balance of the Note as specified therein. 

  

	 	5.11	 DUE ON SALE OR ENCUMBRANCE.    The terms “Loan” and “Loan Documents” have the meaning given them in the
Loan Agreement described in Section 2.1. Mortgagor represents, agrees and acknowledges that: 

  

	 	(a)	 Improvement and operation of real property is a highly complex activity which requires substantial knowledge of law and business conditions and practices, and
an ability to control, coordinate and schedule the many factors affecting such improvement and operation. Experience, financial stability, managerial ability and a good reputation in the business community enhance an owner’s and operator’s
ability to obtain market rents and to induce cooperation in scheduling and are taken into account by Mortgagee in approving loan applications. 

  

	 	(b)	 Mortgagor has represented to Mortgagee, not only in the representations and warranties contained in the Loan Documents, but also in its initial loan
application and in all of the negotiations connected with Mortgagee making the Loan, certain facts concerning Mortgagor’s financial stability, managerial and operational ability, reputation, skill, and creditworthiness. Mortgagee has relied
upon these representations and warranties as a substantial and material consideration in its decision to make the Loan. 

  

	 	(c)	 The conditions and terms provided in the Loan Agreement were induced by these representations and warranties and would not have been made available by
Mortgagee in the absence of these representations and warranties. 

  

	 	(d)	 Mortgagee would not have made this Loan if Mortgagee did not have the right to sell, transfer, assign, or grant participations in the Loan and in the Loan
Documents, and that such participations are dependent upon the potential participants’ reliance on such representations and warranties. 

  

	 	(e)	 Mortgagor’s financial stability and managerial and operational ability and that of those persons or entities having a direct or beneficial interest in
Mortgagor are a substantial and material consideration to any third parties who have entered or will enter into agreements with Mortgagor. 

  

	 	(f)	 Mortgagee has relied upon the skills and services offered by such third parties and the provision of such skills and services is jeopardized if Mortgagor
breaches its covenants contained below regarding Transfers. 

  

	 	(g)	 A transfer of possession of or title to the Subject Property, or a change in the person or entity operating, developing, constructing or managing the Subject
Property, would substantially increase the risk of Default under the Loan Documents and significantly and materially impair and reduce Mortgagee’s security for the Note. 

  
 12 

	 	(h)	 As used herein, the term “Transfer” shall mean each of the following actions or events: the sale, transfer, assignment, lease as a whole,
encumbrance, hypothecation, mortgage or pledge in any manner whatsoever, whether voluntarily, involuntarily or by operation of law of: (i) the Subject Property or Collateral or any interest therein; (ii) title to any other security more
specifically described in any Loan Document; (iii) Mortgagor’s right, title and/or interest in the Loan Documents and any subsequent documents executed by Mortgagor in connection therewith; (iv) legal or beneficial ownership of any
partnership interest in Mortgagor if Mortgagor is a partnership; (v) legal or beneficial ownership of any membership interest in Mortgagor if Mortgagor is a limited liability company; (vi) legal or beneficial ownership of any partnership
interest in any general partner, venturer or member of Mortgagor; or (vii) legal or beneficial ownership of any of the stock in Mortgagor if Mortgagor is a corporation or in any general partner, venturer or member in Mortgagor that is a
corporation. 

  

	 	(i)	 Mortgagor shall not make or commit to make any Transfer without Mortgagee’s prior written consent, which it may grant or withhold at its sole discretion
(except with respect to those Transfers reasonably approved by Mortgagee or otherwise expressly permitted under Sections 9.17, 9.18 and 9.19 of the Loan Agreement). It is expressly agreed that Mortgagee may predicate
Mortgagee’s decision to grant consent to a Transfer on such terms and conditions as Mortgagee may require, in Mortgagee’s sole discretion, including without limitation (i) consideration of the creditworthiness of the party to whom
such Transfer will be made and its development and management ability with respect to the Subject Property, (ii) consideration of whether the security for repayment, performance and discharge of the Secured Obligations, or Mortgagee’s
ability to enforce its rights, remedies, and recourses with respect to such security, will be impaired in any way by the proposed Transfer, (iii) an increase in the rate of interest payable under the Note or any other change in the terms and
provisions of the Note and other Loan Documents, (iv) reimbursement of Mortgagee for all costs and expenses incurred by Mortgagee in investigating the creditworthiness and management ability of the party to whom such Transfer will be made and
in determining whether Mortgagee’s security will be impaired by the proposed Transfer, (v) payment to Mortgagee of a transfer fee to cover the cost of documenting the Transfer in its records, (vi) payment of Mortgagee’s
reasonable attorneys’ fees in connection with such Transfer, (vii) endorsements (to the extent available under applicable law) to any existing mortgagee title insurance policies or construction binders insuring Mortgagee’s liens and
security interests covering the Subject Property, and (viii) require additional security for the payment, performance and discharge of the Secured Obligations. If Mortgagee’s consent should be given, any Transfer shall be subject to the
Loan Documents and any transferee of Mortgagor’s interest shall: (i) assume all of Mortgagor’s obligations thereunder; and (ii) agree to be bound by all provisions and perform all obligations contained therein; provided,
however, that such assumption shall not release Mortgagor or any maker or any guarantor of the Note from any liability thereunder or under any other Loan Documents without the prior written consent of Mortgagee. In the event of any Transfer
without the prior written consent of Mortgagee, whether or not Mortgagee elects to enforce its right to accelerate the Loan pursuant to Sections 6.1 and 6.2, all sums owing under the Note, as well as all other charges, expenses
and costs owing under the Loan Documents, shall at the option of Mortgagee, automatically bear interest at five percent (5%) above the rate provided in the Note, from the date (or any date thereafter) of such unconsented to Transfer. Mortgagor
acknowledges that the automatic shift(s) to this alternate rate is reasonable since the representations that Mortgagee relied upon in making the Loan 

  
 13 

	 	 
may no longer be relied upon. A consent by Mortgagee to one or more Transfers shall not be construed as a consent to further Transfers or as a waiver of Mortgagee’s consent with respect to
future Transfers. 

  

	 	5.12	 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 Subject Property and Collateral or in any manner obligated under the Secured Obligations (“Interested Parties”), Mortgagee may, from time to time, release any person or entity
from liability for the payment or performance of any Secured Obligation, take any action or make any agreement extending the maturity or otherwise altering the terms or increasing the amount of any Secured Obligation, or accept additional security
or release all or a portion of the Subject Property and Collateral and other security for the Secured Obligations. 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 and security interests created by this Mortgage upon the Subject Property and Collateral. 

  

	 	5.13	 RELEASE OF ASSIGNMENT.    When this Mortgage has been fully released, the last such release shall operate as a reassignment
of all future rents, issues and profits of the Subject Property to the person or persons legally entitled thereto. Notwithstanding anything contained herein to the contrary, Mortgagee hereby agrees, subject to the provisions of Section 2.10 of
the Loan Agreement, to release this Mortgage notwithstanding the fact that all of the Secured Obligations have not been satisfied. 

  

	 	5.14	 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 the Loan Documents or by the proceeds of any loan secured by this Mortgage. 

  

	 	5.15	 RIGHT OF INSPECTION.    Mortgagee, its agents and employees, may enter the Subject Property at any reasonable time for the
purpose of inspecting the Subject Property and Collateral and ascertaining Mortgagor’s compliance with the terms hereof. 

  

	 	5.16	 CONTRACTS.  Mortgagor will deliver to Mortgagee a copy of each Contract promptly after the execution of same by all parties thereto
and subject to any approval of Mortgagee required by any of the Loan Documents. Within twenty (20) days after a request by Mortgagee, Mortgagor shall prepare and deliver to Mortgagee a complete listing of all Contracts, showing date, term,
parties, subject matter, concessions, whether any defaults exist, and other information specified by Mortgagee, of or with respect to each of such Contracts, together with a copy thereof (if so requested by Mortgagee). Mortgagor represents and
warrants that none of the Contracts encumber or create a lien on the Subject Property, but are personal with Mortgagor. As used herein, the term “Contract” shall mean any management agreement, leasing and brokerage agreement, and operating
or service contract with respect to the Subject Property or Collateral. 

 ARTICLE 6. DEFAULT PROVISIONS

  

	 	6.1	 DEFAULT.  For all purposes hereof, the term “Default” shall mean (a) the existence of any Event of Default as defined
in the Loan Agreement; (b) at Mortgagee’s option, the failure of Mortgagor to make any payment of principal or interest on the Note or to pay any other amount due hereunder or under the Note when the same is due and payable, whether at
maturity, by acceleration or otherwise; (c) the failure of Mortgagor to perform any non-monetary obligation hereunder, or the failure to be true of any representation or warranty of Mortgagor contained herein and the continuance of such failure
for ten (10) days after notice, or within any longer grace period, if any, allowed in the Loan Agreement for such failure; or, (d) if Mortgagor or any other Person shall make a Transfer without the prior

  
 14 

	 	 
written consent of Mortgagee (which consent may be withheld in Mortgagee’s sole discretion (except for those Transfers reasonably approved by Mortgagee or otherwise expressly permitted under
Sections 9.17, 9.18, and 9.19 of the Loan Agreement) or conditioned as provided in Section 5.11 above). 

  

	 	6.2	 RIGHTS AND REMEDIES. At any time after Default, Mortgagee shall have all the following rights and remedies: 

 

	 	(a)	 With or without notice, to declare all Secured Obligations immediately due and payable; 

 

	 	(b)	 With or without notice, and without releasing Mortgagor from any Secured Obligation, and without becoming a mortgagee in possession, to cure any breach or
Default of Mortgagor and, in connection therewith, to enter upon the Subject Property and do such acts and things as Mortgagee deems necessary or desirable to protect the security hereof, including, without limitation: (i) to appear in and
defend any action or proceeding purporting to affect the security of this Mortgage or the rights or powers of Mortgagee under this Mortgage; (ii) 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 to this Mortgage, the judgment of Mortgagee being conclusive as between the parties hereto; (iii) to obtain insurance; (iv) to pay any premiums or charges with respect to
insurance required to be carried under this Mortgage; or (v) to employ counsel, accountants, contractors and other appropriate persons; 

  

	 	(c)	 To commence and maintain an action or actions in any court of competent jurisdiction to foreclose this instrument as a mortgage or 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)	 To apply to a court of competent jurisdiction for and obtain appointment of a receiver of the Subject Property as a matter of strict right and without regard
to the adequacy of the security for the repayment of the Secured Obligations, the existence of a declaration that the Secured Obligations are immediately due and payable, or the filing of a notice of default, or the commencement of a foreclosure,
and Mortgagor hereby consents to such appointment by a court of competent jurisdiction upon ex parte application, and without notice; notice being hereby expressly waived. Such receiver and his agents shall be empowered (i) to take possession
of the Subject Property and any businesses conducted by Mortgagor or any other person thereon and any business assets used in connection therewith and, if the receiver deems it appropriate, to operate the same, (ii) to exclude Mortgagor and
Mortgagor’s agents, servants, and employees from the Subject Property, (iii) to collect all Payments and the rents, issues, profits, and income from the Subject Property, (iv) to complete any construction which may be in progress,
(v) to do such maintenance and make such repairs and alterations as the receiver deems necessary, (vi) to use all stores of materials, supplies, and maintenance equipment on the Subject Property and replace such items as may be reasonably
necessary at the expense of the receivership estate, (vii) to pay all taxes and assessments against the Subject Property and the Collateral, all premiums for insurance thereon, all utility and other reasonable operating expenses, and all sums
due under any prior or subsequent encumbrance, and (viii) generally to do anything which Mortgagor would reasonably do in its course of business at the Subject Property if Mortgagor were in possession of the Subject

  
 15 

	 	 
Property. All reasonable expenses incurred by the receiver or his agents shall constitute a part of the Secured Obligations. Any revenues collected by the receiver shall be applied first to the
expenses of the receivership, including attorneys’ fees incurred by the receiver and by Mortgagee, together with interest thereon from the date incurred until repaid at the rate of interest applicable under the Note upon its maturity (whether
by acceleration or otherwise), and the balance shall be applied toward the Secured Obligations or in such other manner as the court may direct. Unless sooner terminated with the express consent of Mortgagee, any such receivership will continue until
the Secured Obligations have been discharged in full, or until title to the Subject Property has passed after foreclosure sale and all applicable periods of redemption have expired; 

 

	 	(e)	 To enter upon, possess, manage and operate the Subject Property or any part thereof, to take and possess all documents, books, records, papers and accounts of
Mortgagor or the then owner of the Subject Property, to make, terminate, enforce or modify Leases of the Subject Property upon such terms and conditions as Mortgagee deems proper, to make repairs, alterations and improvements to the Subject Property
as necessary, in Mortgagee’s sole judgment, to protect or enhance the security hereof. Mortgagee may also take possession of any and all Payments that may previously have been collected by or on behalf of Mortgagor following the Default and
that remain in the possession or control of Mortgagor, whether or not commingled with other funds of Mortgagor, and together with any bank or similar accounts in which such Payments may be deposited or held; 

 

	 	(f)	 To execute a written notice of such Default and of its election to cause the Subject Property to be sold to satisfy the Secured Obligations. As a condition
precedent to any such sale, Mortgagee shall give and record such notice as the law then requires. When the minimum period of time required by law after such notice has elapsed, Mortgagee, without notice to or demand upon Mortgagor except as required
by law, shall sell the Subject Property at the time and place of sale fixed by it in the notice of sale, at one or several sales, either as a whole or in separate parcels and in such manner and order, all as Mortgagee in its sole discretion may
determine, at public auction to the highest bidder for cash, in lawful money of the United States, payable at time of sale. Neither Mortgagee nor any other person or entity other than Mortgagee shall have the right to direct the order in which the
Subject Property is sold. Subject to requirements and limits imposed by law, Mortgagee may from time to time postpone sale of all or any portion of the Subject Property by public announcement at such time and place of sale. Mortgagee shall deliver
to the purchaser at such sale a deed conveying the Subject Property or portion thereof so sold, but without any covenant or warranty, express or implied. The recitals in the deed of any matters or facts shall be conclusive proof of the truthfulness
thereof. Any person, including Mortgagor or Mortgagee may purchase at the sale; 

  

	 	(g)	 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 or lawfully taken non-judicial proceedings, or both, and to apply the proceeds received upon the Secured Obligations all in such order and manner as Mortgagee determines in its sole discretion;

  

	 	(h)	 Upon sale of the Subject Property at any judicial or non-judicial foreclosure sale, 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

  
 16 

	 	 
following: (i) appraisals of the Subject 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 Subject Property prior to foreclosure; (iii) expenses and costs which Mortgagee anticipates will be incurred with respect to the Subject Property after foreclosure, but prior to resale, including,
without limitation, costs of structural reports and other due diligence, costs to carry the Subject 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 Subject 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 Subject Property; (v) anticipated discounts upon resale of the Subject 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: (w) Mortgagee is not required to use any or all of the foregoing factors to determine the amount of its credit bid; (x) this Section does not impose upon Mortgagee any additional obligations
that are not imposed by law at the time the credit bid is made; (y) 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 (z) Mortgagee’s credit bid may be (at Mortgagee’s sole and absolute discretion) higher or lower than any appraised value of the Subject Property; 

 

	 	(i)	 Upon the completion of any foreclosure of all or a portion of the Subject Property, commence an action to recover any of the Secured Obligations that remains
unpaid or unsatisfied; 

  

	 	(j)	 Exercise any and all remedies at law, equity, or under the Note, this Mortgage or other Loan Documents for such Default. 

 

	 	6.3	 APPLICATION OF FORECLOSURE SALE PROCEEDS.    After deducting all costs, including, without limitation, cost of evidence of
title and attorneys’ fees in connection with sale and costs and expenses of sale and of any judicial proceeding wherein such sale may be made, all proceeds of any foreclosure sale shall be applied: (a) to payment of all sums expended by
Mortgagee under the terms hereof and not then repaid, with accrued interest at the rate of interest specified in the Note to be applicable on or after maturity or acceleration of the Note; (b) to payment of all other Secured Obligations; and
(c) the remainder, if any, to the person or persons legally entitled thereto. 

  

	 	6.4	 APPLICATION OF OTHER SUMS.  All sums received by Mortgagee under Section 6.2 or Section 3.2, less all costs
and expenses incurred by Mortgagee or any receiver under either Section 6.2 or Section 3.2, including, without limitation, attorneys’ fees, shall be applied in payment of the Secured Obligations in such order as
Mortgagee shall determine in its sole discretion; provided, however, Mortgagee shall have no liability for funds not actually received by Mortgagee. 

 

	 	6.5	 NO CURE OR WAIVER.  Neither Mortgagee’s nor any receiver’s entry upon and taking possession of all or any part of the
Subject Property and Collateral, 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 or failure to exercise of any other right or remedy by Mortgagee or any receiver shall cure or waive any breach, Default or notice of 

  
 17 

	 	 
default under this Mortgage, or nullify the effect of any notice of default or sale (unless all Secured Obligations then due have been paid and performed and Mortgagor has cured all other
defaults), or limit or impair the Secured Obligations or Mortgagor’s liability thereof, 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 or security interest created by this Mortgage. 

  

	 	6.6	 PAYMENT OF COSTS, EXPENSES AND ATTORNEYS’ FEES. Mortgagor agrees to pay to Mortgagee immediately and without demand all costs and expenses
of any kind incurred by Mortgagee pursuant to Section 6.2 (including, without limitation, court costs and attorneys’ fees, whether incurred in litigation or not, and appraisal fees) with interest from the date of expenditure until
said sums have been paid at the rate of interest then applicable to the principal balance of the Note as specified therein. 

  

	 	6.7	 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, (a) to execute and/or record any notices of completion, cessation of labor, or any other notices that Mortgagee deems appropriate to protect Mortgagee’s interest,
(b) upon the issuance of a deed pursuant to the foreclosure of the lien of this Mortgage or the delivery of a deed in lieu of foreclosure, to execute all instruments of assignment or further assurance with respect to the Subject Property and
Collateral, Leases and Payments in favor of the grantee of any such deed, as may be necessary or desirable for such purpose, (c) to prepare, execute and file or record financing statements, continuation statements, applications for registration
and like papers necessary to create, perfect or preserve Mortgagee’s security interests and rights in or to any of the Subject Property and Collateral, and (d) upon the occurrence of an event, act or omission which, with notice or passage
of time or both, would constitute a Default, Mortgagee may perform any obligation of Mortgagor hereunder; provided, however, that: (i) Mortgagee as such attorney-in-fact shall only be accountable for such funds as are actually
received by Mortgagee; and (ii) Mortgagee shall not be liable to Mortgagor or any other person or entity for any failure to act (whether such failure constitutes negligence) by Mortgagee under this Section. 

 

	 	6.8	 REMEDIES CUMULATIVE. All rights and remedies of Mortgagee provided hereunder are cumulative and are in addition to all rights and remedies
provided by applicable law (including specifically that of foreclosure of this instrument as though it were a mortgage) or in any other agreements between Mortgagor and Mortgagee. No failure on the part of Mortgagee to exercise any of its rights
hereunder arising upon any Default shall be construed to prejudice its rights upon the occurrence of any other or subsequent Default. No delay on the part of Mortgagee in exercising any such rights shall be construed to preclude it from the exercise
thereof at any time while that Default is continuing. Mortgagee may enforce any one or more remedies or rights hereunder successively or concurrently. By accepting payment or performance of any of the Secured Obligations after its due date,
Mortgagee shall not thereby waive the agreement contained herein that time is of the essence, nor shall Mortgagee waive either its right to require prompt payment or performance when due of the remainder of the Secured Obligations or its right to
consider the failure to so pay or perform a Default. 

  

	 	6.9	 CONFESSION OF JUDGMENT. FOR THE PURPOSE OF OBTAINING POSSESSION OF THE SUBJECT PROPERTY IN THE EVENT OF ANY DEFAULT HEREUNDER, MORTGAGOR HEREBY
AUTHORIZES AND EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE, AS ATTORNEY FOR MORTGAGOR AND ALL PERSONS CLAIMING UNDER OR THROUGH MORTGAGOR, TO APPEAR FOR AND CONFESS JUDGMENT AGAINST MORTGAGOR, AND
AGAINST ALL PERSONS CLAIMING UNDER OR THROUGH 

  
 18 

	 	 
MORTGAGOR, IN AN ACTION IN EJECTMENT FOR POSSESSION OF THE SUBJECT PROPERTY, IN FAVOR OF MORTGAGEE, FOR WHICH THIS MORTGAGE, OR A COPY THEREOF VERIFIED BY AFFIDAVIT, SHALL BE A SUFFICIENT
WARRANT; AND THEREUPON A WRIT OF POSSESSION MAY IMMEDIATELY ISSUE FOR POSSESSION OF THE SUBJECT PROPERTY, WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER AND WITHOUT ANY STAY OF EXECUTION. IF FOR ANY REASON AFTER SUCH ACTION HAS BEEN COMMENCED IT
SHALL BE DISCONTINUED, OR POSSESSION OF THE SUBJECT PROPERTY SHALL REMAIN IN OR BE RESTORED TO MORTGAGOR, MORTGAGEE SHALL HAVE THE RIGHT FOR THE SAME DEFAULT OR ANY SUBSEQUENT DEFAULT TO BRING ONE OR MORE FURTHER ACTIONS AS ABOVE PROVIDED TO RECOVER
POSSESSION OF THE SUBJECT PROPERTY. MORTGAGEE MAY CONFESS JUDGMENT IN AN ACTION IN EJECTMENT BEFORE OR AFTER THE INSTITUTION OF PROCEEDINGS TO FORECLOSE THIS MORTGAGE OR TO ENFORCE THE NOTE, OR AFTER ENTRY OF JUDGMENT THEREIN OR ON THE NOTE, OR
AFTER A SHERIFF’S SALE OR JUDICIAL SALE OR OTHER FORECLOSURE SALE OF THE SUBJECT PROPERTY IN WHICH MORTGAGEE IS THE SUCCESSFUL BIDDER, IT BEING THE UNDERSTANDING OF THE PARTIES THAT THE AUTHORIZATION TO PURSUE SUCH PROCEEDINGS FOR CONFESSION OF
JUDGMENT THEREIN IS AN ESSENTIAL PART OF THE REMEDIES FOR ENFORCEMENT OF THIS MORTGAGE, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND SHALL SURVIVE ANY EXECUTION SALE TO MORTGAGEE. 

ARTICLE 7. MISCELLANEOUS PROVISIONS 
  

	 	7.1	 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 Subject
Property and Collateral and such further rights and agreements are incorporated herein by this reference. 

  

	 	7.2	 MERGER.  No merger shall occur as a result of Mortgagee’s acquiring any other estate in, or any other lien on, the Subject
Property unless Mortgagee consents to a merger in writing. Furthermore, the assignment of the Payments and other liens, security interests, rights and remedies granted hereunder to Mortgagee, and the covenants, representations, warranties and
obligations of Mortgagor which are not satisfied or discharged by any foreclosure of the Subject Property, shall survive such foreclosure and remain in force and effect thereafter, it being acknowledged and agreed that all obligations of Mortgagor
and rights and remedies of Mortgagee set forth herein are contractual in nature, and such obligations, rights and remedies, and all liens assignments, security interests and other security provided to Mortgagee hereunder and under the other Loan
Documents (but excluding the lien against the Subject Property or portions thereof that are foreclosed) shall not be extinguished by the subject foreclosure. 

 

	 	7.3	 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. 

  

	 	7.4	 INTENTIONALLY OMITTED. 

  

	 	7.5	 WAIVER OF MARSHALLING 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 Subject Property and Collateral, hereby waives all rights to have the Subject Property and 

  
 19 

	 	 
Collateral and/or any other property which is now or later may be security for any Secured Obligation (“Other Property”) marshalled upon any foreclosure of the lien of this Mortgage or
on a foreclosure of any other lien or security interest against any security for any of the Secured Obligations. Mortgagee shall have the right to sell, and any court in which foreclosure proceedings may be brought shall have the right to order a
sale of, the Subject Property and any or all of the Collateral or Other Property as a whole or in separate parcels, in any order that Mortgagee may designate. 

 

	 	7.6	 RULES OF CONSTRUCTION.  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. The term “Subject Property” and “Collateral” means all and any part of the Subject Property and Collateral, respectively, and any interest in the Subject
Property and Collateral, respectively. 

  

	 	7.7	 SUCCESSORS IN INTEREST.  The terms, covenants, and conditions herein contained shall be binding upon and inure to the benefit of the
heirs, successors and assigns of the parties hereto; provided, however, that this Section 7.7 does not waive or modify the provisions of Section 5.11. 

 

	 	7.8	 EXECUTION IN 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 or acknowledgment of, or on behalf of, each party, or that the signature of all persons required to bind any party, or the acknowledgment of such 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, and the respective
acknowledgments of, each of the parties hereto. Any signature or acknowledgment page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures or acknowledgments thereon and thereafter attached to
another counterpart identical thereto except having attached to it additional signature or acknowledgment pages. 

  

	 	7.9	 CHOICE OF LAW. WITH RESPECT TO MATTERS RELATING TO THE CREATION, PERFECTION AND PROCEDURES RELATING TO THE ENFORCEMENT OF THE LIENS CREATED PURSUANT
TO THIS MORTGAGE, THIS MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, IT BEING UNDERSTOOD THAT, EXCEPT AS EXPRESSLY SET FORTH ABOVE IN THIS PARAGRAPH AND TO THE FULLEST EXTENT PERMITTED
BY THE LAW OF SUCH STATE, THE LAWS OF THE STATE OF CALIFORNIA SHALL GOVERN ALL MATTERS RELATING TO THIS MORTGAGE, THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ALL OF THE INDEBTEDNESS OR OBLIGATIONS ARISING THEREUNDER OR HEREUNDER.

  

	 	7.10	 INCORPORATION. Exhibits A, and B, all as attached, are incorporated into this Mortgage by this reference. 

 

	 	7.11	 NOTICES. All notices, demands or other communications required or permitted to be given pursuant to the provisions of this Mortgage shall be in
writing and shall be considered as properly given if delivered personally or sent by certified United States mail, return receipt requested, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid. Notices so sent
shall be effective upon receipt at the address set forth below; 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. For purposes of notice, the address of the parties shall be: 

  
 20 

			
	Mortgagor:	  	 KBSII I-81 INDUSTRIAL PORTFOLIO TRUST

c/o KBS Capital Advisors LLC
 590 Madison Avenue, 26th Floor
 New York, NY 10022
 Attention: Mr. Charles Valentino
 Tel: (212) 644-6662
 Fax: (212) 644-1372
 E-mail: cvalentino@kbsrealty.com

	Mortgagee:	  	 WELLS FARGO BANK,
NATIONAL ASSOCIATION
 Real Estate Group (AU #02955)
 Orange
County
 2030 Main Street, Suite 800
 Irvine, CA
92614
 Attn: Bryan Stevens, Senior Vice President
 Tel:
(949) 251-4125
 Fax: (949) 851-9728
 Loan #:
1002835

	With a copy to:	  	 Wells Fargo Bank, National Association

Los Angeles Loan Center
 2120 East Park Place, Suite 100

El Segundo, California 90245
 Attention: Eva
Lopez

 Any party shall have the right to change its address for notice hereunder to any other location within the continental
United States by the giving of thirty (30) days notice to the other party in the manner set forth hereinabove. Mortgagor shall forward to Mortgagee, without delay, any notices, letters or other communications delivered to the Subject Property
or to Mortgagor naming Mortgagee, “Lender” or the “Construction Lender” or any similar designation as addressee, or which could reasonably be deemed to affect the construction of the Improvements or the ability of Mortgagor to
perform its obligations to Mortgagee under the Note or the Loan Agreement. 
  

	 	7.12	 LIMITATIONS ON RECOURSE.    The limitations on personal liability of shareholders, partners and members of Borrower
contained in Section 13.27 of the Loan Agreement shall apply to this Mortgage. 

  

	 	7.13	 PURCHASE MONEY MORTGAGE.  This Mortgage is intended to be a “purchase money mortgage” as defined in 42 Pa. C.S.A.
§8141. 

  

	 	7.14	 OPEN-END MORTGAGE. This Mortgage shall constitute an “Open-End Mortgage” as such term is defined in 42 Pa.C.S. §8143(f), and
shall secure Future Advances and shall have lien priority in accordance with the provisions of 42 Pa.C.S. §§8143 and 8144. Notwithstanding the foregoing, to the maximum extent permitted by law, Mortgagor hereby unconditionally and
irrevocably waives its right to submit a notice to Mortgagee under 42 Pa.C.S. §8143(c). In addition to the other remedies available under the Loan Agreement and any other document evidencing the Secured Obligations, any advances made after
receipt of any such notice, whether or not made pursuant to 42 Pa.C.S. §8143 and/or §8144, shall be secured hereby and shall relate back to the date when this Mortgage was left for recording with the recorder of deeds. In the event any
person or entity shall submit a notice to Mortgagee under 42 Pa.C.S. §8143(b), in addition to the other remedies available under this Mortgage, the Loan Agreement and any other document evidencing the Secured Obligations, Mortgagor shall have
the lien or encumbrance which is the subject of such notice removed of record in accordance with this Mortgage; and any advances made by Mortgagee after receipt of any 

  
 21 

	 	 
such notice whether or not made under 42 Pa.C.S. §8143(b) shall be deemed to be obligatory advances made under, shall be secured hereby, and shall relate back to the date when this Mortgage
was left for recording with the recorder of deeds. By placing or accepting any such lien or encumbrance against any or all of the Subject Property, the holder thereof shall be deemed to have agreed to the maximum extent permitted by law that its
lien or encumbrance shall be subject and subordinate in lien priority to this Mortgage and to any subsequent advances made under the Loan Agreement and any other document evidencing the Secured Obligations, to all accrued and unpaid interest and to
all other sums secured hereby. This Mortgage is given to secure the obligations of the Mortgagor and certain of Mortgagor’s Affiliates under, or in respect of, the Loan Documents to which Mortgagor and its Affiliates are parties, up to that
amount which is equal to the amount of the aggregate maximum permitted principal indebtedness provided under the terms of the Loan Documents and shall secure not only obligations with respect to presently existing indebtedness under the foregoing
documents and agreements, but also any and all other indebtedness now owing or which may hereafter be owing by Mortgagor and its Affiliates to Mortgagee and/or Lenders, however incurred, whether interest, discount or otherwise, and whether the same
shall be deferred, accrued or capitalized, including future advances and re-advances, pursuant to the Loan Documents, advances for the payment of taxes and assessments and municipal claims, maintenance charges, insurance premiums, costs incurred for
the protection of the property or the lien of this Mortgage, expenses incurred by Mortgagee or any Lender by reason of a Default under this Mortgage, or for any other permissible purpose, whether such advances are obligatory or are to be at the
option of Lenders, or otherwise, to the same extent as if such future advances were made on the date of the execution of this Mortgage. The lien of this Mortgage shall be valid as to all indebtedness secured hereby, including future advances, from
the time of its filing for record in the recorder’s office of the county in which the property is located; and the lien of all present and future advances shall relate back to the date of this Mortgage. This Mortgage is intended to and shall be
valid and have priority over all subsequent liens and encumbrances, including statutory liens, excepting solely taxes and assessments levied on the real estate, to the extent of the maximum amount secured hereby. The amount of principal indebtedness
that may be secured by this Mortgage may increase or decrease from time to time. The maximum amount of principal indebtedness outstanding at any one time shall not exceed $372,000,000 exclusive of accrued and unpaid interest and unpaid balances of
advances and other extensions of credit secured by this Mortgage made for the payment of taxes, assessments, maintenance charges, insurance premiums and costs incurred for the protection of the Subject Property within the meaning of 42 Pa. C.S.A.
§ 8143(f), and expenses incurred by the Mortgagee or any Lender by reason of the occurrence of a Default under this Mortgage and other costs and advances to the fullest extent permitted by the terms of 42 Pa. C.S.A. § 8144.

 SECTION 6.9 OF THIS MORTGAGE PROVIDES FOR THE REMEDY OF CONFESSION OF JUDGMENT IN EJECTMENT. IN CONNECTION THEREWITH,
MORTGAGOR VOLUNTARILY AND KNOWINGLY WAIVES ITS RIGHTS, IF ANY, TO NOTICE AND TO BE HEARD BEFORE THE ENTRY OF OR EXECUTION UPON SUCH JUDGMENT. MORTGAGOR ACKNOWLEDGES THAT IT IS REPRESENTED BY COUNSEL AND THAT COUNSEL HAS REVIEWED WITH AND EXPLAINED
TO MORTGAGOR THE MEANING OF THIS WAIVER AND THE AFORESAID REMEDY. 

  
 22 

 IN WITNESS WHEREOF, Mortgagor, intending to be legally bound, has executed this Mortgage. 

 

													
	“MORTGAGOR”                       
                                       

	
	 KBSII I-81 INDUSTRIAL PORTFOLIO TRUST,

a Delaware Statutory Trust

		
	By:        	 	KBSII I-81 INDUSTRIAL PORTFOLIO, LLC,
		 	 a Delaware limited liability company,
 as Administrative Trustee

			
		 	By:        	 	KBSII REIT ACQUISITION XXI, LLC,
		 		 	 a Delaware limited liability company,

its sole member

				
		 		 	By:        	 	KBS REIT PROPERTIES II, LLC,
		 		 		 	 a Delaware limited liability company,

its sole member

					
		 		 		 	By:        	 	KBS LIMITED PARTNERSHIP II,
		 		 		 		 	 a Delaware limited partnership,
 its
sole member

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

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

 (ALL SIGNATURES MUST BE ACKNOWLEDGED)

 CERTIFICATE OF RESIDENCE 
 I hereby certify that the precise residence of Mortgagee is: 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 

Real Estate Group 
 2030 Main Street, Suite 800 

Irvine, CA 92614 
 Attn: Bryan Stevens, Senior Vice President

 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 By: /s/
Bryan Stevens 
 Name: Bryan Stevens 
 Its:
Senior Vice President 

 STATE OF CALIFORNIA 
 COUNTY OF    Orange             SS. 

On February 8, 2011 before me, K. Godin, Notary Public, personally appeared Charles J. Schreiber, Jr., who proved to me
on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 

WITNESS my hand and official seal 
 Signature /s/ K. Godin

 My commission expires June 5, 2013. 

 EXHIBIT A 
  

DESCRIPTION OF SUBJECT PROPERTY 
 Exhibit A to Open-End Mortgage with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing executed by KBSII I-81 INDUSTRIAL PORTFOLIO TRUST, a Delaware statutory trust, as Mortgagor
for the benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION, acting as Administrative Agent for certain lenders, as Mortgagee, dated as of February 8, 2011. 
 All the certain real property located in the County of Lackawanna, Commonwealth of Pennsylvania, described as follows: 

LOTS 3 & 4, JESSUP SMALL BUSINESS CENTER 14-46 ALBERIGI DRIVE 

PIN# 12602 010 00103 (Lot 3) 
 LOT 3: 

ALL that certain lot or parcel of land situate in the Borough of Jessup, County of Lackawanna and Commonwealth of Pennsylvania bounded and described as follows, to
wit: 
 BEGINNING at a point on the northwesterly right-of-way line of Alberigi Drive, a common corner of Lot 3 and Lot 5 as shown on a plan titled
“S.L.I.B.CO Jessup Small Business Center Lots 3 & 4 Lot line adjustment - Final Subdivision Plan” dwg. no. C-1 dated April 4, 2005 and prepared by Acker Associates, Inc.; 
 THENCE along said line of Alberigi Drive South 39°51’37” West nine hundred ninety-two and seventy-seven hundredths (992.77’) feet to a point of curvature; 

THENCE continuing along said line of Alberigi Drive in a southwesterly direction along a curve to the left having a radius of one thousand forty-five
(1045.00’) feet for an arc length of eighty-four and seventy-nine hundredths (84.79’) feet (chord bearing and distance being South 37°32’09” West 84.77’) to a point; 

THENCE leaving Alberigi Drive along Lot 2 North 54°47’19” West four hundred fifty-nine and four hundredths (459.04’) feet to a point;

 THENCE along Lot 4 the following five (5) courses and distances: 
 1. North 11°13’36” East one hundred eighteen and eighty-six hundredths (118.86’) feet to a point, 
 2. North 23°27’37” East three hundred fifty-one and forty-three hundredths (351.43’) feet to a point, 
 3. North 36°43’10” East one hundred seven and ninety-four hundredths (107.94’) feet to a point, 

4. North 42°53’35” East two hundred ninety-four and fifteen hundredths (294.15’) feet to a point, and 

5. North 56°54’10” East two hundred eighty-four and eighteen hundredths (284.18’) feet to a point in line of Lot 5, 

THENCE along Lot 5 South 50°08’23” East five hundred seventeen and thirty-four hundredths (517.34’) feet to the point of BEGINNING.

 CONTAINING 14.41 Acres of land being the same, more or less. 
 BEING ALL of Lot 3, as described on that certain Subdivision Plan dated April 4, 2005, and entitled “Final Subdivision Plan - S.L.I.B.C.O. Jessup Small Business Center - Lots 3 & 4 Line Adjustment -
Jessup 

 EXHIBIT A 
  

Borough, Lackawanna County, Pennsylvania” prepared by Acker Associates and recorded in Lackawanna County on May 27, 2005 in Book 6 AM, at page 4927 (the “Subdivision Plan”).

 PIN# 12602 010 00104 (Lot 4) 
 LOT 4: 

ALL that certain lot of parcel of land situate in the Borough of Jessup, County of Lackawanna and Commonwealth of Pennsylvania bounded and described as follows, to
wit: 
 BEGINNING at a point on the southeasterly right-of-way line of Sunnyside Drive, a common corner of Lot 2 and Lot 4 as shown on a plan titled
“S.L.I.B.CO Jessup Small Business Center Lots 3 & 4 Lot Line Adjustment - Final Subdivision Plan” dwg. no. C-1 dated April 4, 2005 and prepared by Acker Associates, Inc.; 
 THENCE along said line of Sunnyside Drive North 33°38’24” East two hundred ninety-one and eighty-two hundredths (291.82’) feet to a point of curvature; 

THENCE continuing along said line of Sunnyside Drive in a northeasterly direction along a curve to the right having a radius of two thousand seven hundred
ninety-nine and seventy- nine hundredths (2799.79’) feet for an arc length of six hundred twenty-one and eighteen hundredths (621.18’) feet (chord bearing and distance being North 39°59’46” East 619.91’) to a
point of tangency; 
 THENCE continuing along said line of Sunnyside Drive North 46°21’08” East two hundred thirty-eight and seventy-six
hundredths (238.76’) feet to a point; 
 THENCE leaving Sunnyside Drive along Lot 5 South 50°08’23” East three hundred forty and
thirty-five hundredths (340.35’) feet to a point; 
 THENCE along Lot 3 the following five (5) courses and distances: 

1. South 56°54’10” West two hundred eighty-four and eighteen hundredths (284.18’) feet to a point, 

2. South 42°53’35” West two hundred ninety-four and fifteen hundredths (294.15’) feet to a point, 

3, South 36°43’10” West one hundred seven and ninety-four hundredths (107.94’) feet to a point, 

4. South 23°27’37” West three hundred fifty-one and forty-three hundredths (351.43’) feet to a point, and 

5. South 11°13’36” West one hundred eighteen and eighty-six hundredths (118.86’) feet to a point in line of Lot 2; 

THENCE along Lot 2 North 54°47’19” West four hundred one and seventy-six hundredths (401.76’) feet to the point of BEGINNING. 

BEING ALL of Lot 4 as described on the above-mentioned plan. 

Containing Eight and twenty-one one hundredths (8.21) acres of land, more or less. 
 Tax ID / Parcel No. 12602-010-00103 and 12602-010-00104 

 EXHIBIT B 
  

NON-BORROWER MORTGAGOR RIDER 

Exhibit B to Open-End Mortgage with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing executed by KBSII I-81
INDUSTRIAL PORTFOLIO TRUST, a Delaware statutory trust, as Mortgagor, for the benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION, acting as Administrative Agent for certain lenders, as Mortgagee, dated as of February 8, 2011. 

To the extent the Mortgage secures a promissory note and other loan documents (“Loan Documents”) made by a party or parties
(“Borrower”) not identical to the party or parties constituting Mortgagor, the party or parties constituting Mortgagor agree as follows: 
  

	1.	 CONDITIONS TO EXERCISE OF RIGHTS.    Mortgagor hereby waives any right it may now or hereafter have to require Mortgagee, as
a condition to the exercise of any remedy or other right against Mortgagor hereunder or under any other document executed by Mortgagor in connection with any Secured Obligation: (a) to proceed against any Borrower or other person, or against
any other collateral assigned to Mortgagee by Mortgagor or any Borrower or other person; (b) to pursue any other right or remedy in Mortgagee’s power; (c) to give notice of the time, place or terms of any public or private sale of
real or personal property collateral assigned to Mortgagee by any Borrower or other person (other than Mortgagor), or otherwise to comply with the UCC (as defined in the Mortgage) with respect to any such personal property collateral; or (d) to
make or give (except as otherwise expressly provided in the Loan Documents) any presentment, demand, protest, notice of dishonor, notice of protest or other demand or notice of any kind in connection with any Secured Obligation or any collateral
(other than the Subject Property) for any Secured Obligation. 

  

	2.	 DEFENSES.  Mortgagor hereby waives any defense it may now or hereafter have that relates to: (a) any disability or other defense
of any Borrower or other person; (b) the cessation, from any cause other than full performance, of the obligations of Borrower or any other person; (c) the application of the proceeds of any Secured Obligation, by any Borrower or other
person, for purposes other than the purposes represented to Mortgagor by any Borrower or otherwise intended or understood by Mortgagor or any Borrower; (d) any act or omission by Mortgagee which directly or indirectly results in or contributes
to the release of any Borrower or other person or any collateral for any Secured Obligation; (e) the unenforceability or invalidity of any collateral assignment (other than this Mortgage) or guaranty with respect to any Secured Obligation, or
the lack of perfection or continuing perfection or lack of priority of any lien (other than the lien hereof) which secures any Secured Obligation; (f) any failure of Mortgagee to marshal assets in favor of Mortgagor or any other person;
(g) any modification of any Secured Obligation, including any renewal, extension, acceleration or increase in interest rate; (h) any and all rights and defenses arising out of an election of remedies by Mortgagee, even though that election
of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed Mortgagor’s rights of subrogation and reimbursement against the principal by operation of Section 580d of the California
Code of Civil Procedure or otherwise; (i) any law which provides that the obligation of a surety or guarantor must neither be larger in amount nor in other respects more burdensome than that of the principal or which reduces a surety’s or
guarantor’s obligation in proportion to the principal obligation; (j) any failure of Mortgagee to file or enforce a claim in any bankruptcy or other proceeding with respect to any person; (k) the election by Mortgagee, in any
bankruptcy proceeding of any person, of the application or non-application of Section 1111(b)(2) of the United States Bankruptcy Code; (l) any extension of credit or the grant of any lien under Section 364 of the United States
Bankruptcy Code; (m) any use of cash collateral under Section 363 of the United States Bankruptcy Code; or (n) any agreement or stipulation with respect to the provision of adequate protection in any bankruptcy proceeding of any
person. Mortgagor further waives any and all rights and defenses that Mortgagor may have because Borrower’s debt is secured by real 

 EXHIBIT B 
  

	 	 
property; this means, among other things, that: (1) Mortgagee may collect from Mortgagor without first foreclosing on any real or personal property collateral pledged by Borrower;
(2) if Mortgagee forecloses on any real property collateral pledged by Borrower, then (A) the amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth
more than the sale price, and (B) Mortgagee may collect from Mortgagor even if Mortgagee, by foreclosing on the real property collateral, has destroyed any right Mortgagor may have to collect from Borrower. The foregoing sentence is an
unconditional and irrevocable waiver of any rights and defenses Mortgagor may have because Borrower’s debt is secured by real property. These rights and defenses being waived by Mortgagor include, but are not limited to, any rights or defenses
based upon Section 580a, 580b, 580d or 726 of the California Code of Civil Procedure. Without limiting the generality of the foregoing or any other provision hereof, Mortgagor further expressly waives to the extent permitted by law any and all
rights and defenses, including without limitation any rights of subrogation, reimbursement, indemnification and contribution, which might otherwise be available to Mortgagor under California Civil Code Sections 2787 to 2855, inclusive, 2899 and
3433, or under California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any of such sections.. 

  

	3.	 SUBROGATION.    Mortgagor hereby waives, until such time as all Secured Obligations are fully performed: (a) any right
of subrogation against any Borrower that relates to any Secured Obligation; (b) any right to enforce any remedy Mortgagor may now or hereafter have against any Borrower that relates to any Secured Obligation; and (c) any right to
participate in any collateral now or hereafter assigned to Mortgagee with respect to any Secured Obligation. 

  

	4.	 BORROWER INFORMATION.    Mortgagor warrants and agrees: (a) that Mortgagee would not make the Loan but for this
Mortgage; (b) that Mortgagor has not relied, and will not rely, on any representations or warranties by Mortgagee to Mortgagor with respect to the credit worthiness of any Borrower or the prospects of repayment of any Secured Obligation from
sources other than the Subject Property; (c) that Mortgagor has established and/or will establish adequate means of obtaining from each Borrower on a continuing basis financial and other information pertaining to the business operations, if
any, and financial condition of each Borrower; (d) that Mortgagor assumes full responsibility for keeping informed with respect to each Borrower’s business operations, if any, and financial condition; (e) that Mortgagee shall have no
duty to disclose or report to Mortgagor any information now or hereafter known to Mortgagee with respect to any Borrower, including, without limitation, any information relating to any of Borrower’s business operations or financial condition;
and (f) that Mortgagor is familiar with the terms and conditions of the Loan Documents and consents to all provisions thereof. 

  

	5.	 REINSTATEMENT OF LIEN.    Mortgagee’s rights hereunder shall be reinstated and revived, and the enforceability of this
Mortgage shall continue, with respect to any amount at any time paid on account of any Secured Obligation which Mortgagee is thereafter required to restore or return in connection with a bankruptcy, insolvency, reorganization or similar proceeding
with respect to any Borrower. 

  

	6.	 SUBORDINATION.    Until all of the Secured Obligations have been fully paid and performed: (a) Mortgagor hereby agrees
that all existing and future indebtedness and other obligations of each Borrower to Mortgagor (collectively, the “Subordinated Debt”) shall be and are hereby subordinated to all Secured Obligations which constitute obligations of the
applicable Borrower, and the payment thereof is hereby deferred in right of payment to the prior payment and performance of all such Secured Obligations; (b) Mortgagor shall not collect or receive any cash or non-cash payments on any
Subordinated Debt or transfer all or any portion of the Subordinated Debt; and (c) in the event that, notwithstanding the foregoing, any payment by, or distribution of assets of, any Borrower with respect to any Subordinated Debt is received by
Mortgagor, such payment or distribution shall be held in trust and immediately paid over to Mortgagee, is hereby assigned to Mortgagee as security 

 EXHIBIT B 
  

	 	 
for the Secured Obligations, and shall be held by Mortgagee in an interest bearing account until all Secured Obligations have been fully paid and performed. 

 

	7.	 LAWFULNESS AND REASONABLENESS.    Mortgagor warrants that all of the waivers in this Mortgage are made with full knowledge
of their significance, and of the fact that events giving rise to any defense or other benefit waived by Mortgagor may destroy or impair rights which Mortgagor would otherwise have against Mortgagee, Borrower and other persons, or against
collateral. Mortgagor agrees that all such waivers are reasonable under the circumstances and further agrees that, if any such waiver is determined (by a court of competent jurisdiction) to be contrary to any law or public policy, the other waivers
herein shall nonetheless remain in full force and effect. 

  

	8.	 ENFORCEABILITY.    Mortgagor hereby acknowledges that: (a) the obligations undertaken by Mortgagor in this Mortgage are
complex in nature, and (b) numerous possible defenses to the enforceability of these obligations may presently exist and/or may arise hereafter, and (c) as part of Mortgagee’s consideration for entering into this transaction,
Mortgagee has specifically bargained for the waiver and relinquishment by Mortgagor of all such defenses, and (d) Mortgagor has had the opportunity to seek and receive legal advice from skilled legal counsel in the area of financial
transactions of the type contemplated herein. Given all of the above, Mortgagor does hereby represent and confirm to Mortgagee that Mortgagor is fully informed regarding, and that Mortgagor does thoroughly understand: (i) the nature of all such
possible defenses, and (ii) the circumstances under which such defenses may arise, and (iii) the benefits which such defenses might confer upon Mortgagor, and (iv) the legal consequences to Mortgagor of waiving such defenses.
Mortgagor acknowledges that Mortgagor makes this Mortgage with the intent that this Mortgage and all of the informed waivers herein shall each and all be fully enforceable by Mortgagee, and that Mortgagee is induced to enter into this transaction in
material reliance upon the presumed full enforceability thereof. 

  

	9.	 WAIVER OF RIGHT TO TRIAL BY JURY. TO THE EXTENT PERMITTED BY THEN APPLICABLE LAW, EACH PARTY TO THIS MORTGAGE, AND BY ITS ACCEPTANCE HEREOF,
MORTGAGEE, HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF OR (b) IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THE LOAN DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY AND MORTGAGEE HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS
MORTGAGE AND MORTGAGEE MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO AND MORTGAGEE TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

 

	10.	 INTEGRATION; INTERPRETATION. This Mortgage and the other 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. This Mortgage and the other 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 Mortgagee in writing.

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