Document:

Promissory Note

 Exhibit 10.67 
 Loan No. AGRUS 10231B 
 PROMISSORY NOTE 

 

			
	$8,333,333.00	 	As of January 15, 2013

 FOR VALUE RECEIVED, KBS LEGACY PARTNERS WATERTOWER LLC, a Delaware limited liability
company, having an address at 620 Newport Center Drive, Suite 1300, Newport Beach, California 92660 (“Borrower”), promises to pay to the order of ALLIANZ GLOBAL RISKS US INSURANCE COMPANY, a California corporation, having an address
at c/o Allianz of America, Inc., 55 Green Farms Road, P.O. Box 5160, Westport, Connecticut 06881-5160, Attn: Real Estate Department (“Lender”) (the legal holder from time to time of this promissory note (this
“Note”), including Lender as the initial holder, may be referred to as the “Holder”), the principal sum of EIGHT MILLION THREE HUNDRED THIRTY-THREE THOUSAND THREE HUNDRED THIRTY-THREE AND 00/100 DOLLARS
($8,333,333.00), or so much thereof as may be advanced to or for the benefit of Borrower by Lender (hereinafter referred to as “Principal Indebtedness”), together with interest thereon at an annual rate of Two and Forty-Six
Hundredths percent (2.46%) (the “Interest Rate”), in accordance with the provisions hereinafter set forth. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Security Instrument
(hereinafter defined). 
 1.      Terms of
Payment.  On the date on which the Principal Indebtedness is advanced to Borrower (the “Advancement Date”), Borrower shall pay to Lender an amount equal to the interest only, on the Principal Indebtedness, at the
Interest Rate, calculated on the basis of a 360 day year and the number of days from and including the Advancement Date to and including February 9, 2013. On the tenth (10th) day of each consecutive calendar month for the term of this Note (such payment dates being hereinafter referred
to collectively as the “Monthly Payment Dates,” and individually, a “Monthly Payment Date”), the following monthly payments (the “Monthly Payments”) shall be due and payable: 

 (a)        on each Monthly Payment Date commencing on
March 10, 2013 to and including February 10, 2015, payments of interest only on the principal amount of this Note in the amount of $17,083.33; and 

 (b)        on each Monthly Payment Date commencing on
March 10, 2015 to and including January 10, 2018, payments of principal and interest (based on a 360 month amortization schedule) in the amount of $32,754.00. 

So long as there is no Event of Default (hereinafter defined) hereunder or under any of the other Loan Documents
(hereinafter defined), the Monthly Payments shall be applied first to interest on the Principal Indebtedness from time to time outstanding at the Interest Rate and the balance shall be applied in reduction of the Principal Indebtedness. From and
after any Event of Default hereunder or under any of the other Loan Documents, Lender may apply any and all payments received hereunder in such order as Lender shall determine in its sole discretion. The interest component of the monthly payments
shall be calculated and applied on the basis of a 360-day year consisting of twelve 30-day months, except that interest for any partial month shall be calculated 

 
and applied on the basis of a 360-day year and the actual number of days in such partial month during which all or any part of the Principal Indebtedness is outstanding. On the tenth (10th) day of February, 2018 (the “Maturity Date”),
Borrower shall pay to Lender the entire Principal Indebtedness then remaining unpaid, together with accrued and unpaid interest thereon at the Interest Rate and any other charges due under this Note, the Security Instrument, and any other documents
evidencing, securing, or pertaining to the advancement or disbursement of, the Principal Indebtedness (collectively, the “Loan Documents”). Notwithstanding the foregoing, however, if any Monthly Payment Date or the Maturity Date is
not a Business Day, then the applicable payment shall be due on the Business Day immediately preceding the Monthly Payment Date or Maturity Date, as applicable. The period from and including the date hereof to the Maturity Date will be referred to
hereinafter as the “Term”. 
 BORROWER HEREBY ACKNOWLEDGES AND UNDERSTANDS THAT THE FOREGOING
INSTALLMENTS WILL NOT BE SUFFICIENT TO REPAY THE PRINCIPAL AMOUNT OF THIS NOTE ON THE MATURITY DATE BECAUSE THE LOAN EVIDENCED HEREBY HAS BEEN AMORTIZED OVER A PERIOD OF THIRTY (30) YEARS AND THE TERM OF THIS NOTE IS APPROXIMATELY FIVE
(5) YEARS AND, THEREFORE, A PORTION OF THE PRINCIPAL BALANCE OF THIS NOTE SHALL BE UNPAID AND DUE AND PAYABLE ON THE MATURITY DATE. 
 The Loan being made to Borrower on the date hereof in the original principal amount of $25,000,000.00 is evidenced by this Note and that certain Promissory Note of even date herewith in the original
principal amount of $16,666,667.00 made by Borrower in favor of Fireman’s Fund Insurance Company (the “Fireman’s Fund Note”). 
 2.       Prepayment.   This Note may be prepaid in full at any time subject to a “Prepayment Fee” that may be substantial. Such premium
represents consideration to Lender for loss of yield and reinvestment cost. The “Prepayment Fee” shall be determined by Lender and shall be an amount equal to: 

 (a)        The Yield Maintenance Fee with respect to any
prepayment made prior to February 10, 2016; 

 (b)        two percent (2%) of the outstanding
principal balance of this Note with respect to any prepayment made during the period from February 10, 2016 through but excluding February 10, 2017; and 

 (c)        one percent (1%) of the outstanding
principal balance of this Note with respect to any prepayment made from and after February 10, 2017. 
 As
used herein, the “Yield Maintenance Fee” shall be an amount equal to the difference between (x) the present value at the time of prepayment of the remaining scheduled Monthly Payments and the present value at the time of
prepayment of the final installment of principal and interest due on the Maturity Date, both discounted on a monthly basis at the “Index Rate,” defined below, and (y) the unpaid principal balance of this Note at the time of
prepayment, but not less than zero. The “Index Rate” is defined as the current yield at the time of prepayment of the Treasury Constant Maturity (the “TCM”) referenced in the weekly Federal Reserve Statistical Release
H 15 (519) for the week immediately preceding the date on which written request for prepayment is 

  
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received by Lender (each such request, a “Prepayment Notice”), with a remaining term to maturity most closely corresponding to the remainder of the Term, as appropriately
interpolated by Lender. If the TCM ceases to be published during the Term, the Index Rate shall be the average of the yield, for the five (5) Business Days immediately preceding the date of prepayment of the Loan, of the US Treasury Note or
Bond having a remaining term to maturity and coupon rate most closely corresponding to the remainder of the Term and Interest Rate, respectively. The Index Rate will apply for any prepayment made within fifteen (15) days after such request is
received by Lender, after which a more recent Index Rate may be used at the sole discretion of Lender. 
 If
Lender exercises its right to accelerate the maturity date following an Event of Default by Borrower, tender of payment of the amount necessary to satisfy the entire outstanding indebtedness made thereafter at any time prior to the completion of
transfer of ownership of the Real Property to Lender pursuant to a foreclosure sale or deed-in-lieu of foreclosure or similar transaction, either by Borrower, its successors or assigns, or by anyone in behalf of Borrower, shall be deemed to be a
voluntary prepayment herein and such prepayment, to the extent permitted by law, shall include Prepayment Fee. Notwithstanding anything herein to the contrary, no Prepayment Fee will be payable if prepayment is scheduled to be and is received during
the last one hundred eighty (180) days prior to the Maturity Date. Furthermore, as provided in the Security Instrument, no Prepayment Fee will be payable if prepayment is made from insurance or condemnation proceeds. 

Borrower agrees that the Prepayment Fee does not constitute a penalty. Borrower also agrees that the Prepayment Fee
constitutes a negotiated alternative performance of Borrower’s obligations under this Note. Borrower further agrees that the Prepayment Fee is a reasonable estimate, agreed to between Borrower and Lender, of a fair compensation for the loss
that may be sustained by Lender due to the unscheduled prepayment of the Principal Indebtedness prior to the Maturity Date. The Prepayment Fee shall be paid without prejudice to the right of Lender to collect any of the amounts owing under this Note
or any other Loan Document or otherwise to enforce any of its rights or remedies arising out of an Event of Default. 
 Borrower’s right to prepay this Note shall be conditioned upon the simultaneous prepayment by Borrower of the Allianz Note in accordance with the provisions of Section 2 thereof. Any partial
prepayments of principal may at Lender’s election be applied to this Note and/or the Allianz Note. 

3.        Security. This Note is secured by, among other things
(a) that certain Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing executed by Borrower in favor of Lender of even date herewith (the “Security Instrument”), constituting a first priority lien on
Borrower’s interest in the Real Property and (b) that certain Assignment of Leases and Rents given by Borrower to Lender in connection with the Real Property of even date herewith, including a first priority security interest in
Borrower’s interest in the Security. 
 4.        Location and
Medium of Payments. The sums payable under this Note, the Security Instrument, or any other Loan Document shall be paid to Lender by federal wire transfer of immediately available funds, or by such other means as Lender may from time to time
hereafter designate to Borrower in writing, in legal tender of the United States of America. Any Monthly Payment or other payment of principal and/or interest due hereunder is due to Lender by 1:00 p.m. Eastern Time on the date when such payment is
due. Notwithstanding the foregoing, payment by Borrower to Lender of the entire indebtedness evidenced by this Note and the other Loan Documents, whether by prepayment, at the Maturity Date, by Acceleration of Maturity, or

  
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otherwise, shall be deemed made on a designated Business Day only if such funds are both sent by federal wire transfer of immediately available funds and are received by Lender on such designated
Business Day no later than 2:00 p.m. Eastern Time. Funds not so received shall continue to bear interest at the applicable rate until payment is received in compliance with the foregoing. 

5.        Acceleration of Maturity.  Immediately upon the
occurrence of any Event of Default, Lender shall have the option, in addition to and not in lieu of or substitution for all other rights and remedies provided in this Note, the Security Instrument or any other Loan Document or provided by law or in
equity, to declare without notice the entire amount of the Principal Indebtedness then outstanding, together with all interest, the Prepayment Fee, and other charges, including, but not limited to any Late Charge or interest payable at the Default
Rate (each as hereinafter defined), due under any of the Loan Documents, immediately due and payable (“Acceleration of Maturity”). 
 6.        Collection and Enforcement Costs. Borrower, upon demand, shall pay Lender for all costs and expenses, including without limitation Attorneys’
Fees (as hereinafter defined) paid or actually incurred by Lender in connection with the collection of any Delinquent Payment (as hereinafter defined) due hereunder, or in connection with enforcement of any of Lender’s rights or Borrower’s
obligations under this Note, the Security Instrument or any of the other Loan Documents, together with interest thereon at the Default Rate. “Attorneys’ Fees” shall mean and include all fees, charges and costs incurred by Lender
through its retention of outside legal counsel, paralegals and legal assistants, and shall also include, without limitation, expert witness payments and other court costs whether or not incurred in any judicial, bankruptcy or administrative
proceeding. 
 7.        Late Charge. If any payment due under
this Note or any other Loan Document (other than the outstanding Principal Indebtedness due upon acceleration or on the Maturity Date, as the case may be), is not paid by Borrower when due without regard to any cure or grace period (each such unpaid
amount, a “Delinquent Payment”), Borrower shall pay to Lender and Lender shall be entitled to collect from Borrower a late payment charge equal to the lesser of five percent (5%) of the Delinquent Payment or the maximum amount
allowed by law (“Late Charge”). Borrower agrees that each Late Charge is a reasonable estimate of, and a fair average compensation for, the loss that will be sustained by Lender due to the failure of Borrower to make timely
payments, and such amount shall be secured by the Security Instrument and the other Loan Documents. Borrower’s payment of any Late Charge shall be paid without prejudice to the right of Lender to collect any other amounts owed by Borrower under
this Note, the Security Instrument, or any other Loan Document (including, without limitation, Late Charges with respect to Delinquent Payments first falling due in subsequent months), or to declare an Event of Default under this Note, the Security
Instrument or any other Loan Document (including, without limitation, Late Charges with respect to any subsequent Delinquent Payment). 
 8.        Default Rate. In addition to any Late Charge which may be due under this Note, if an Event of Default shall have occurred and be continuing,
Borrower shall pay interest on all sums due hereunder at a rate (the “Default Rate”) equal to the lesser of (i) the Interest Rate plus five percent (5%) per annum, or (ii) the maximum rate that the parties may
contract for under applicable law. 
 9.        Continuing
Liability. The obligation of Borrower to pay the Principal Indebtedness, interest and all other sums due hereunder shall continue in full force and effect and in no way be impaired, until the actual payment thereof to Lender, and in case of a
sale or transfer of all or any 

  
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part of the Security, or in case of any further agreement given to secure the payment of this Note, or in case of any agreement or stipulation extending the time or modifying the terms of payment
above recited, Borrower shall nevertheless continue to be liable on this Note, as extended or modified by any such agreement or stipulation, unless specifically released and discharged in writing by Lender. 

10.        Joint and Several Liability.    If more
than one person, corporation, partnership or other entity shall now or any time in the future join in the execution of this Note or any amendment, modification or extension thereto or any substitution or replacement thereof, then each such person
and entity shall be fully liable for all obligations of Borrower hereunder, and such obligations shall be joint and several. 
 11.        No Oral Changes; Waivers.    This Note may not be changed orally, but only by an agreement in writing signed by the party
against whom enforcement of a change is sought. The provisions of this Note shall extend and be applicable to all renewals, amendments, extensions, consolidations, and modifications of the Loan Documents and any and all references herein to the Loan
Documents shall be deemed to include any such renewals, amendments, extensions, consolidations, or modifications thereof. 
 Borrower and any future endorsers, sureties, and guarantors hereof, jointly and severally, waive presentment for payment, demand, notice of demand, notice of nonpayment, notice of dishonor, protest of any
dishonor, notice of protest, and protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default (except notice of default required hereby, if any), or enforcement of the payment of this Note, and they
agree that the liability of each of them shall be unconditional without regard to the liability of any other party and shall not be in any manner affected by any indulgence, extension of time, renewal, waiver, or modification granted or consented to
by Lender; and Borrower and all future endorsers, sureties and guarantors hereof consent to any and all extensions of time, renewals, waivers, or modifications that may be granted by Lender hereof with respect to the payment or other provisions of
this Note, and to the release of the Security, or any part thereof, with or without substitution, and agree that additional makers, endorsers, guarantors, or sureties may become parties hereto or to any other Loan Document without notice to them or
without affecting their liability hereunder or under any of the other Loan Documents. 
 Lender shall not by any
act of omission or commission (including, but not limited to, the failure to cause an Acceleration of Maturity hereof by reason of an Event of Default) be deemed to waive any of its rights or remedies hereunder unless such waiver be in writing and
signed by Lender, and then only to the extent specifically set forth therein; a waiver of one event shall not be construed as continuing or as a bar to or waiver of such right or remedy on a subsequent event. The acceptance by Lender of payment
hereunder that is less than payment in full of all amounts due at the time of such payment shall not without the express written consent of Lender: (i) constitute a waiver of the right to exercise any of Lender’s remedies at that time or
at any subsequent time, (ii) constitute an accord and satisfaction, or (iii) nullify any prior exercise of any remedy. 
 To the maximum extent permitted by law, Borrower hereby waives and renounces for itself, its successors and assigns, all rights to the benefits of any statute of limitations and any moratorium,
reinstatement, marshalling, forbearance, valuation, stay, extension, redemption, appraisement and exemption now provided, or which may hereafter be provided, by the Constitution and laws of the

  
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United States of America and of any state thereof, both as to itself and in and to all of its property, real and personal, against the enforcement and collection of the obligations evidenced by
this Note. 
 12.        Bind and
Inure.    This Note shall bind and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns. 

13.        Applicable Law; Severability.    The
provisions of this Note shall be construed and enforceable in accordance with the laws of the State of Minnesota. If any provision of this Note or the application hereof to any person or circumstance shall, for any reason and to any extent, be
determined to be invalid or unenforceable, neither the remainder of this Note nor the application of such provision to any other person or circumstance shall be affected thereby, but rather the same shall be enforced to the greatest extent permitted
by law. 
 14.        Usury.     It is hereby
expressly agreed that if from any circumstances whatsoever fulfillment of any provision of this Note, at the time performance of such provision shall be due, shall cause the payments hereunder to exceed the maximum rate that the parties hereto can
contract for under any applicable usury statute or any other law, with regard to obligations of like character and amount, then ipso facto the obligation to be fulfilled shall be reduced to such maximum rate, so that in no event shall
any exaction be possible under this Note that is in excess of such maximum rate. In no event shall Borrower be bound to pay for the use, forbearance or detention of the money loaned pursuant hereto, interest of more than the current maximum rate
that the parties hereto can contract for under applicable law; the right to demand any such excess being hereby expressly waived by Lender. 
 15.        Notice.    Any notice, demand, request, statement, consent or other communication hereunder shall be delivered in accordance
with Section 42 of the Security Instrument. 

16.        Nonrecourse.   (a)  The liability of
Borrower with respect to the payment of principal, interest and costs hereunder and with respect to performance by Borrower of Borrower’s obligations and any and all other liability hereunder, under the Security Instrument, and under the other
Loan Documents, shall be “non-recourse” and, accordingly, Lender’s source of satisfaction of said indebtedness and Borrower’s other obligations hereunder and under the other Loan Documents shall be limited to the Security and the
rents, issues, and profits from the Security, and Lender shall not seek to procure payment out of any other assets of Borrower, or any person or entity comprising Borrower, nor seek judgment for any sums which are or may be payable under this Note
or under any of the other Loan Documents, as well as any claim or judgment (except as hereafter provided) for any deficiency remaining after foreclosure of the Security Instrument. Notwithstanding the above, nothing herein contained shall be deemed
to be a release or impairment of the indebtedness evidenced by this Note or the security therefor intended by the Loan Documents or be deemed to preclude Lender from exercising its rights to foreclose the Security Instrument or to enforce any of its
other rights or remedies under the Loan Documents, subject to the provisions of this Section 16(a). 

(b)        Notwithstanding the limitations set forth in Section 16(a)
above, it is expressly understood and agreed that the aforesaid limitation on liability shall in no way affect or apply to Borrower’s or Principal’s joint and several continued personal liability for, and Lender’s right to recover,
any loss, damage, cost, expense, liability, claim or other obligation incurred by Lender arising out of or in connection with the following: 

  
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    (i)
      any fraud or misrepresentation by Borrower under the Loan Documents, the application for the Loan or the Security Instrument; 

  (ii)        the retention by Borrower of any security
deposits, advance deposits or any other deposits collected with respect to the Real Property which are not delivered to Lender upon a foreclosure of the Real Property or action in lieu thereof, except to the extent any such security deposits were
applied in accordance with the terms and conditions of any of the leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu thereof; 

 (iii)       the retention by Borrower of any prepaid rental income,
lease termination fee, deposit, or other prepaid income under any lease of all or part of the Real Property which was unearned as of the occurrence of an Event of Default under this Note; 

 (iv)        the misapplication by Borrower of any proceeds under
any insurance policies pertaining to the Real Property or awards resulting from condemnation or the exercise of the power of eminent domain or by reason of damage or destruction to any portion of the Real Property or any building or buildings
located thereon; 
   (v)        the retention by
Borrower of any rental income or other cash collected arising with respect to the Security and not applied to the maintenance or operation of the Real Property, as reflected in Borrower’s bills and receipt for such expenditures from parties
unrelated to Borrower, except that neither Borrower nor Principal will be personally liable with respect to any rental income or other cash collected with respect to the Security that is distributed by Borrower in any calendar year if Borrower has
paid all ordinary and necessary expenses of owning and operating the Real Property for such calendar year and all amounts due under the Loan Documents; 

 (vi)        the retention by Borrower of any tangible Personal
Property, including Leases, books, records and files relating to the leasing, operation and maintenance of the Real Property in Borrower’s possession or which Borrower may readily obtain which are not delivered to Lender, at its request, upon a
foreclosure of the Real Property or action in lieu thereof, 
 (vii)
      any unpaid real estate taxes, utilities, assessments, insurance premiums and any other operating expenses (excluding principal and interest payments under the Loan) relating to the maintenance or operation of the
Real Property to the extent of available cash flow from the Security or other assets of Borrower, which accrued prior to the first to occur of the following: (A) Lender’s acquisition of fee simple title to the Real Property through
a foreclosure of the Security Instrument; or (B) a sale of the Real Property at foreclosure to a third party purchaser; or (C) transfer of the Real Property by Borrower to Lender under the following conditions: (1) the transfer is by
special warranty deed subject only to the Permitted Encumbrances and such other title exceptions approved by Lender; (2) Borrower has sole power to convey the Real Property, and is not then under any legal disability, subject to any insolvency
proceeding, or otherwise subject to any stay or other prohibition against transfer of the Real Property; (3) such conveyance is preceded or accompanied by 

  
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such other documents and reports (including, without limitation, an environmental report satisfactory to Lender) as are reasonable and customary in the State in connection with conveyances of
commercial real property; and (4) Lender is able to obtain an owner’s policy of title insurance in the amount of the unpaid balance of this Note, subject only to the Permitted Encumbrances and such other title exceptions approved by
Lender; 
 (viii)       a default by Borrower of any of the
provisions of Section 16 of the Security Instrument (Restrictions on Transfer); 

  (ix)       a default by Borrower of any of the provisions of
Section 17 of the Security Instrument (No Other Liens; No Secondary or Mezzanine Financing); 
    (x)       a material Default by Borrower of any of the provisions of Section 59 of the Security Instrument (Single Purpose Entity); 

  (xi)       any liability under the Leases arising from the
termination of any commercial Leases in violation of the Loan Documents or from a landlord default under any commercial Leases; 
  (xii)       the replacement cost of any of the Security, including personal property or fixtures owned by Borrower, which is damaged, destroyed, removed, or disposed of
and not repaired, rebuilt or replaced as required by the Loan Documents, to the extent that the replacement cost of such Security exceeds the insurance proceeds (if any) received by Borrower and/or Lender as a result of such events due to the
failure of Borrower to maintain insurance policies covering the Security as required under the Security Instrument and the other Loan Documents; and/or 

(xiii)       the costs and expenses incurred by Lender to enforce
Lender’s rights under this Section 16, including attorneys’ fees and the costs of paralegals. 
 (c)       Notwithstanding the limitations set forth in Section 16(a) above, the agreement of Lender not to pursue recourse liability against Borrower as set forth in
this Section SHALL BECOME NULL AND VOID and shall be of no further force or effect, and the Indebtedness and other sums due from Borrower to Lender under the Loan Documents shall immediately become FULLY RECOURSE to Borrower and Principal, jointly
and severally, in the event of: 

    (i)        a voluntary bankruptcy or
insolvency proceeding is commenced by Borrower or Principal under the U.S. Bankruptcy Code or any similar federal or state law; 
    (ii)        an involuntary bankruptcy or insolvency proceeding is commenced against Borrower or Principal (other than by Lender) and is not
dismissed within ninety (90) days after the commencement thereof; 

 (iii)        a default by Borrower of any of the provisions
of Section 16 of the Security Instrument (Restrictions on Transfer); and/or 

  
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 (iv)        a
default by Borrower of any of the provisions of Section 17 of the Security Instrument (No Other Liens; No Secondary or Mezzanine Financing). 
 (d)        Nothing herein shall be deemed to be a waiver of any right which Lender may have in the event of a bankruptcy or insolvency proceeding involving
Borrower, as debtor, under any provision of the U.S. Bankruptcy Code to file a claim for the full amount of the Indebtedness of Borrower to Lender under the Loan Documents or to require that all collateral encumbered by the Security Instrument shall
continue to secure the Indebtedness of Borrower to Lender under the Loan in accordance with this Note, the Security Instrument or the other Loan Documents. 
 17.        Time of the Essence.    Time is of the essence with respect to the intent, meaning, construction and enforcement of each and
every covenant, agreement and obligation of Borrower under this Note and any of the other Loan Documents. 

18.        Waiver of Trial by Jury.    Lender and
Borrower each hereby waive their rights to a trial by jury as to any matter arising out of or concerning the subject matter of this Note. 
 [Remainder of Page Intentionally Left Blank; Signature Page Follows] 

  
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 IN WITNESS WHEREOF, Borrower has duly executed this Note, as a sealed instrument, as of the
day and year first above written. 
  

									
	 BORROWER:

	
	KBS LEGACY PARTNERS WATERTOWER LLC, a Delaware limited liability company
		
	By:	  	KBS Legacy Partners Properties LLC, a Delaware limited liability company, its sole member
			
		  	By:	  	KBS Legacy Partners Limited Partnership, a Delaware limited partnership, its sole member
				
		  		  	By:	  	 KBS Legacy Partners Apartment REIT, Inc. a Maryland corporation,

its sole general partner

				
		  		  		  	By: /s/ Guy K. Hays                
		  		  		  	Name:	 	Guy K. Hays
		  		  		  	Title:	 	Executive Vice PresidentLimited Guaranty

 Exhibit 10.68 
 Loan Numbers: FFIC 10231A and AGRUS 10231B 
 LIMITED GUARANTY 

This LIMITED GUARANTY (this “Guaranty”) is made and entered into as of January 15, 2015, by KBS
LEGACY PARTNERS PROPERTIES LLC, a Delaware limited liability company (“Guarantor”), for the benefit of FIREMAN’S FUND INSURANCE COMPANY, a California corporation (together with its successors and assigns,
“Fireman’s Fund”) and ALLIANZ GLOBAL RISKS US INSURANCE COMPANY, a California corporation, (together with its successors and assigns, “Allianz” and, together with Fireman’s Fund, “Lender”)
each having a business and mailing address at c/o Allianz of America, Inc., 55 Green Farms Road, P.O. Box 5160, Westport, Connecticut 06881-5160, Attn: Real Estate Department. 
 RECITALS 

A.        Lender made a loan (the “Loan”) to KBS Legacy Partners
Watertower LLC, a Delaware limited liability company (“Borrower”) in the original principal amount of Twenty-Five Million and 00/100 Dollars ($25,000,000.00) (the “Loan”), which Loan is evidenced by (i) that
certain Promissory Note of even date herewith executed by Borrower in favor of Fireman’s Fund in the amount of $16,666,667.00 (as such may be extended, modified, renewed and/or replaced, the “Fireman’s Fund Note”) and
(ii) that certain Promissory Note of even date herewith executed by Borrower in favor of Allianz in the amount of $8,333,333.00 (as such may be extended, modified, renewed and/or replaced, the “Allianz Note” and, together with
the Fireman’s Fund Note, the “Note”), which Note is secured by, inter alia, that certain Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing of even date herewith executed by Borrower
in favor of Lender (the “Security Instrument”) encumbering Borrower’s interest in that certain real property and all of the improvements thereon located in the City of Eden Prairie, County of Hennepin, and State of Minnesota,
together with the improvements now or hereafter located thereon (the “Security”). The Note, the Security Instrument and any other documents evidencing, securing or pertaining to the Loan are collectively referred to herein as the
“Loan Documents.” 
 B.        Guarantor owns a direct
or indirect interest in Borrower, and Guarantor will derive substantial benefit from Lender’s making of the Loan to Borrower. 
 C.        Lender requires as a condition to making the Loan that Guarantor guarantees, for the benefit of Lender, and its successors and assigns, all obligations
and liabilities of Borrower with respect to the Loan for which Borrower is personally liable. 
 NOW, THEREFORE,
to induce Lender to make the Loan to Borrower, and in consideration of the substantial benefit Guarantor will derive from the Loan, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound hereby, Guarantor hereby agrees as follows: 

 ARTICLE I 
 INCORPORATION; DEFINED TERMS 

1.1        Incorporation of Recitals.   The recitals of
fact as set forth above are hereby agreed to be true and are incorporated into the body of this Guaranty by reference. 
 1.2        Defined Terms.   Certain capitalized terms used in this Guaranty and not defined herein are defined in the Security Instrument and
the other Loan Documents, and when used in this Guaranty such capitalized terms shall have the meanings given to them by the language employed in the Security Instrument and the other Loan Documents unless otherwise defined herein. 

ARTICLE II 

OBLIGATIONS GUARANTEED 
 2.1        Guaranty of Loan Obligations.    Guarantor irrevocably and unconditionally guarantees to Lender the prompt payment when due,
whether at stated maturity, by acceleration or otherwise, of all obligations and liabilities of Borrower for which Borrower is, or shall become, personally liable pursuant to the Note and other Loan Documents, as and to the extent provided in
Section 16 of the Note (the “Guaranteed Obligations”). 

2.2        Continuing Obligation.    This Guaranty is
a continuing guaranty and in full force and effect and will be discharged only if and when the Loan has been paid in full, and all obligations under the Note and other Loan Documents have been fully performed; provided, however, that notwithstanding
any of the foregoing to the contrary, this Guaranty shall remain in full force and effect for so long as any payment hereunder may be voided in bankruptcy proceedings as a preference or for any other reason. 

2.3        Direct Action against
Guarantor.    Guarantor’s liability under this Guaranty is a guaranty of payment and performance and not of collection. Lender has the right to require Guarantor to pay, comply with and satisfy its obligations and
liabilities under this Guaranty, and shall have the right to proceed immediately against Guarantor with respect thereto, without being required to attempt recovery first from Borrower or any other party, without first suing on the Note or any other
Loan Document and without demonstrating that the collateral for the Loan is inadequate security or that Lender has exercised (to any degree) or exhausted any of Lender’s other rights and remedies with respect to Borrower or any collateral for
the Loan. 
 ARTICLE III 
 GENERAL TERMS AND CONDITIONS 

3.1        Payments; Interest on Amounts Payable Hereunder. Amounts
payable to Lender under this Guaranty shall be immediately due and payable on Lender’s written demand and shall be paid without reduction by set-off, defense, counterclaim or cross-claim. Amounts not paid

  
 2 

 
within five (5) Business Days (hereinafter defined) after Lender’s written demand shall, at Lender’s option and without prejudice to Lender’s rights for failure to pay, bear
interest at the Default Rate from the date of Lender’s demand notice until paid in full. Interest at the Default Rate also shall accrue on any judgment obtained by Lender in connection with the enforcement or collection of amounts due under
this Guaranty until such judgment is paid in full. If interest paid or payable hereunder is deemed to exceed the maximum rate permitted by law, then the amount to be paid immediately shall be reduced to such maximum rate and thereafter computed at
such maximum rate. Lender may apply all money received by Lender to payment or reduction of the Loan or reimbursement of Lender’s expenses, in such priority and proportions, and at such time or times as Lender may elect. 

3.2        Events of Default.    Guarantor shall be in
default of this Guaranty at Lender’s option if any of the following (each, an “Event of Default”) shall occur: (a) Guarantor fails to make a payment required hereunder within five (5) Business Days after Lender’s
written demand for payment, (b) any representation or warranty made herein or in any financial statement required to be furnished to Lender under this Guaranty is untrue in any material respect or materially misleading as of the date made, or
(c) the breach of any covenant by Guarantor made herein or in any other Loan Document, not cured within the applicable grace period, if any, including, without limitation, the covenants in Sections 3.14 and 3.15 hereof. 

3.3        Remedies.    Following an Event of Default
(which has not been waived in writing by Lender), Lender shall be entitled to accelerate the Loan and exercise all other rights and remedies as have been provided to Lender hereunder, under the other Loan Documents, by law or in equity. Such rights
and remedies are cumulative and may be exercised independently, concurrently or successively in Lender’s sole discretion and as often as occasion therefor shall arise. Lender’s delay or failure to accelerate the Loan or exercise any other
remedy upon the occurrence of an Event of Default shall not be deemed a waiver of such right or remedy. No partial exercise by Lender of any right or remedy will preclude further exercise thereof. Notice or demand given to Guarantor in any instance
will not entitle Guarantor to notice or demand in similar or other circumstances nor constitute Lender’s waiver of its right to take any future action in any circumstance without notice or demand (except where expressly required by this
Guaranty to be given). Lender may release other security for the Loan, may release any party liable for the Loan, may grant extensions, renewals or forbearances with respect thereto, may accept a partial or past due payment or grant other
indulgences, or may apply any other security held by it to payment of the Loan, in each case without prejudice to its rights under this Guaranty and without such action being deemed an accord and satisfaction or a reinstatement of the Loan. Lender
will not be deemed as a consequence of its delay or failure to act, or any forbearances granted, to have waived or be estopped from exercising any of its rights or remedies. 

3.4        Enforcement Costs.    Guarantor hereby
agrees to pay, on written demand by Lender, all costs incurred by Lender in collecting any amount payable under this Guaranty or enforcing or protecting its rights under this Guaranty in each case whether or not legal proceedings are commenced. Such
fees and expenses include, without limitation, Attorneys’ Fees, court fees, costs incurred in connection with pre-trial, trial and appellate level proceedings (including discovery and expert witnesses) and costs incurred in post-judgment
collection efforts or in any bankruptcy proceeding. Amounts incurred by Lender shall be immediately due and 

  
 3 

 
payable, and shall bear interest at the Default Rate from the date of disbursement until paid in full, if not paid in full within five (5) Business Days after Lender’s written demand
for payment. 
 3.5        Unimpaired
Liability.    Guarantor acknowledges and agrees that all obligations hereunder are and shall be absolute and unconditional under any and all circumstances without regard to the validity, regularity or enforceability of any or
all of the Loan Documents or the existence of any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor or surety. Without limiting the foregoing, Guarantor acknowledges and agrees that its
liability hereunder shall in no way be released, terminated, discharged, limited or impaired by reason of any of the following (whether or not Guarantor has any knowledge or notice thereof): (a) Borrower’s lack of authority or lawful right
to enter into any of the Loan Documents; (b) any modification, supplement, extension, consolidation, restatement, waiver or consent provided by Lender with respect to any of the Loan Documents including, without limitation, the grant of
extensions of time for payment or performance; (c) failure to record any Loan Document or to perfect any security interest intended to be provided thereby or otherwise to protect, secure or insure any collateral for the Loan;
(d) Lender’s failure to exercise, or delay in exercising, any rights or remedies Lender may have under the Loan Documents or under this Guaranty; (e) the release or substitution, in whole or in part, of any collateral for the Loan or
acceptance of additional collateral for the Loan; (f) the release of Borrower from performance, in whole or in part, under any of the Loan Documents, in each case whether by operation of law, Lender’s voluntary act, or otherwise;
(g) any bankruptcy, insolvency, reorganization, adjustment, dissolution, liquidation or other like proceeding involving or affecting Borrower, any other guarantor or Lender; (h) the termination or discharge of the Security Instrument or
the exercise of any power of sale or any foreclosure (judicial or otherwise) or delivery or acceptance of a deed-in-lieu of foreclosure; (i) the existence of any claim, setoff, counterclaim, defense or other rights which Guarantor may have
against Borrower, any other guarantor or Lender, whether in connection with the Loan or any other transaction; or (j) the accuracy or inaccuracy of the representations and warranties made by Borrower in any of the Loan Documents. 

3.6        Waivers. 

    (a)        Guarantor absolutely, unconditionally, knowingly, and
expressly waives: 

        (i)        (1) notice of
acceptance hereof; (2) notice of any loans or other financial accommodations made or extended under the Loan Documents or the creation or existence of any Guaranteed Obligations; (3) notice of the amount of the Guaranteed Obligations,
subject, however, to Guarantor’s right to make inquiry of Lender to ascertain the amount of the Guaranteed Obligations at any reasonable time; (4) notice of any adverse change in the financial condition of Borrower or of any other fact
that might increase Guarantor’s risk hereunder; (5) notice of presentment for payment, demand, protest, and notice thereof as to any instruments among the Loan Documents; (6) notice of any default or event of default under the Loan
Documents; and (7) all other notices (except if such notice is specifically required to be given to Guarantor hereunder or under any Loan Document to which Guarantor is a party) and demands to which Guarantor might otherwise be entitled.

  
 4 

     (ii)        any right to require Lender to
institute suit against, or to exhaust any rights and remedies which Lender has or may have against, Borrower or any third party, or against any collateral for the Guaranteed Obligations provided by Borrower, Guarantor, or any third party. In this
regard, Guarantor agrees that it is bound to the payment of all Guaranteed Obligations, whether now existing or hereafter accruing, as fully as if such Guaranteed Obligations were directly owing to Lender by Guarantor. Guarantor further waives any
defense arising by reason of any disability or other defense (other than the defense that the Guaranteed Obligations shall have been fully and finally performed and indefeasibly paid) of Borrower or by reason of the cessation from any cause
whatsoever of the liability of Borrower in respect thereof. 

     (iii)        (1) any rights to assert against
Lender any defense (legal or equitable), set-off, counterclaim, or claim which Guarantor may now or at any time hereafter have against Borrower or any other party liable to Lender; (2) any defense, set-off, counterclaim, or claim, of any kind
or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Guaranteed Obligations or any security therefor; (3) any defense Guarantor has to performance hereunder,
and any right Guarantor has to be exonerated, provided by any applicable law, or otherwise, arising by reason of: the impairment or suspension of Lender’s rights or remedies against Borrower; the alteration by Lender of the Guaranteed
Obligations; any discharge of Borrower’s obligations to Lender by operation of law as a result of Lender’s intervention or omission; or the acceptance by Lender of anything in partial satisfaction of the Guaranteed Obligations; and
(4) the benefit of any statute of limitations affecting Guarantor’s liability hereunder or the enforcement thereof, and any act which shall defer or delay the operation of any statute of limitations applicable to the Guaranteed Obligations
shall similarly operate to defer or delay the operation of such statute of limitations applicable to Guarantor’s liability hereunder. 
     (b)        Guarantor absolutely, unconditionally, knowingly, and expressly waives any defense arising by reason of or deriving from
(i) any claim or defense based upon an election of remedies by Lender including any defense based upon an election of remedies by Lender under the provisions of any law of the State of Minnesota or any other jurisdiction; or (ii) any
election by Lender under Bankruptcy Code Section 1111(b) to limit the amount of, or any collateral securing, its claim against Borrower. 
 If any of the Guaranteed Obligations at any time are secured by a mortgage or deed of trust upon real property, Lender may elect, in its sole discretion, upon an Event of Default with respect to the
Guaranteed Obligations, to foreclose such mortgage or deed of trust judicially or nonjudicially in any manner permitted by law, before or after enforcing this Guaranty, without diminishing or affecting the liability of Guarantor hereunder except to
the extent the Guaranteed Obligations are repaid in full with the proceeds of such foreclosure; provided, however, that Guarantor’s liability hereunder shall not be reduced by amounts received by Lender in connection with the foreclosure or
sale of any collateral securing the Loan or any other enforced collection, other than amounts received directly from Guarantor after the acceleration of the Loan or until the total of such amounts received are sufficient to pay the Guaranteed
Obligations and all other obligations secured by such mortgage in full. Guarantor understands that (a) by virtue of the operation of any antideficiency law applicable to nonjudicial foreclosures, an election by Lender nonjudicially to foreclose
such a mortgage or deed of trust probably would have the effect of 

  
 5 

 
impairing or destroying rights of subrogation, reimbursement, contribution, or indemnity of Guarantor against Borrower or other guarantors or sureties, and (b) absent the waiver given by
Guarantor herein, such an election would prevent Lender from enforcing this Guaranty against Guarantor. Understanding the foregoing, and understanding that Guarantor is hereby relinquishing a defense to the enforceability of this Guaranty, Guarantor
hereby waives any right to assert against Lender any defense to the enforcement of this Guaranty, whether denominated “estoppel” or otherwise, based on or arising from an election by Lender nonjudicially to foreclose any such mortgage or
deed of trust. Guarantor understands that the effect of the foregoing waiver may be that Guarantor may have liability hereunder for amounts with respect to which Guarantor may be left without rights of subrogation, reimbursement, contribution, or
indemnity against Borrower or other guarantors or sureties. Guarantor hereby waives and relinquish any right to have the fair market value of the property determined by a judge or jury in any action on the obligations secured hereby, including,
without limitation, a hearing to determine fair market value pursuant to Minnesota State law, if any such right exists now or in the future, which shall have no applicability with respect to the determination of Guarantor’s liability under this
Guaranty. 
      (c)         Until such time
as all of the Guaranteed Obligations have been fully, finally, and indefeasibly paid in full in cash: (i) Guarantor hereby postpones any right of subrogation Guarantor has or may have as against Borrower with respect to the Guaranteed
Obligations; (ii) Guarantor hereby postpones any right to proceed against Borrower or any other person, now or hereafter, for contribution, indemnity, reimbursement, or any other suretyship rights and claims, whether direct or indirect,
liquidated or contingent, whether arising under express or implied contract or by operation of law, which Guarantor may now have or hereafter has as against Borrower with respect to the Guaranteed Obligations; and (iii) Guarantor also hereby
postpones any right to proceed or seek recourse against or with respect to any property or asset of Borrower. 

3.7         No Election.  Lender shall have the right to seek
recourse against Guarantor to the fullest extent provided for herein, and no election by Lender to proceed in one form of action or proceeding, or against any party, or on any obligation, shall constitute a waiver of Lender’s right to proceed
in any other form of action or proceeding or against other parties unless Lender has expressly waived such right in writing. Specifically, but without limiting the generality of the foregoing, no action or proceeding by Lender under any document or
instrument evidencing the Guaranteed Obligations shall serve to diminish the liability of Guarantor under this Guaranty except to the extent that Lender finally and unconditionally shall have realized indefeasible payment by such action or
proceeding. 
 3.8         Guarantor Bound by Judgment Against
Borrower.    Guarantor agrees that they shall be bound conclusively, in any jurisdiction, by the judgment in any action by Lender against Borrower in connection with the Loan Documents (wherever instituted) as if Guarantor
were a party to such action even if not so joined as a party. 

  
 6 

 3.9        Certain Consequences of
Borrower’s Bankruptcy. 
     (a)        If
Borrower shall be subject to a proceeding under Title 11 of the United States Code (the “Bankruptcy Code”) or any insolvency law the effect of which is to prevent or delay Lender from taking any remedial action against Borrower,
including the exercise of any option Lender has to accelerate and declare the Loan immediately due and payable, Lender may, as against Guarantor, nevertheless declare the Loan due and payable and enforce any or all of its rights and remedies against
Guarantor as provided herein. 
     (b)        Any
payment made on the Loan, whether made by Borrower or Guarantor or any other person, that is required to be refunded or recovered from Lender as a preference or a fraudulent transfer or is otherwise set-aside pursuant to the Bankruptcy Code or any
insolvency or other debtor relief law shall not be considered as a payment made on the Loan or under this Guaranty. Guarantor’s liability under this Guaranty shall continue with respect to any such payment, or be deemed reinstated, with the
same effect as if such payment had not been received by Lender, notwithstanding any notice of revocation of this Guaranty prior to such avoidance or recovery or payment in full of the Loan, until such time as all periods have expired within which
Lender could be required to return any amount paid at any time on account of the Guaranteed Obligations. 

     (c)        Until payment in full of the Loan
(including interest accruing on the Note after the commencement of a proceeding by or against Borrower under the Bankruptcy Code or other insolvency law, which interest the parties agree remains a claim that is prior and superior to any claim of
Guarantor notwithstanding any contrary practice, custom or ruling in cases under the Bankruptcy Code generally), Guarantor agrees not to accept any payment or satisfaction of any kind of indebtedness of Borrower to Guarantor and hereby assigns such
indebtedness to Lender, including the right (but not the obligation) to file proof of claim and to vote in any other bankruptcy or insolvency action, including the right to vote on any plan of reorganization, liquidation or other proposal for debt
adjustment under federal, state or foreign law. 

3.10        Subrogation and Contribution.    Guarantor
agrees that no payment by Guarantor under this Guaranty shall give rise to (a) any rights of subrogation against Borrower or the collateral for the Loan, or (b) any rights of contribution against Borrower, any partner of Borrower or any
other guarantor, in each case unless and until Lender has received full and indefeasible payment of the Loan. If the deferral of such rights shall be unenforceable for any reason, Guarantor agrees that (a) its rights of subrogation shall be
junior and subordinate to Lender’s rights against Borrower and the collateral for the Loan, and (b) its rights of contribution against Borrower, any partner of Borrower or any other guarantor shall be junior and subordinate to
Lender’s rights against such parties. 

3.11        Subordination of Borrower’s Obligations to
Guarantor.    Any indebtedness of Borrower to Guarantor, now or hereafter existing, together with any interest thereon, shall be and hereby is deferred, postponed and subordinated to the prior payment in full of the Loan.
Further, Guarantor agrees that should Guarantor receive any payment, satisfaction or security for any indebtedness owed by Borrower to it, the same shall be delivered to Lender in the form received

  
 7 

 
(endorsed or assigned as may be appropriate) for application on account of, or as security for, the Loan and until so delivered to Lender, shall be held in trust for Lender as security for the
Loan. 
 3.12     Lender Transferees; Secondary Market
Activities.    Guarantor acknowledges and agrees that Lender, without notice to Guarantor or Guarantor’s prior consent, may assign all or any portion of its rights hereunder in connection with any sale or assignment of
the Loan or servicing rights related to the Loan, each grant of participations in the Loan, a transfer of the Loan as part of a securitization in which Lender assigns its rights to a securitization trustee, or a contract for the servicing of the
Loan, and that each such assignee, participant or servicer shall be entitled to exercise all of Lender’s rights and remedies hereunder. Guarantor further acknowledges that Lender may provide to third parties with an existing or prospective
interest in the servicing, enforcement, ownership, purchase, participation or securitization of the Loan, including, without limitation, any rating agency rating the securities issued in respect of a securitization or participation of the Loan, and
any entity maintaining databases on the underwriting and performance of commercial mortgage loans, any and all information which Lender now has or may hereafter acquire relating to the Loan, the Security or with respect to Borrower or Guarantor, as
Lender determines necessary or desirable. Guarantor irrevocably waives all rights it may have under applicable law, if any, to prohibit such disclosure, including, without limitation, any right of privacy. 

3.13     Intentionally Omitted. 

3.14     Net Worth Covenant.    At all times until the Guaranteed
Obligations have been fully satisfied, Guarantor shall maintain a tangible net worth at least equal to $70,000,000.00 (the “Net Worth Requirement”). For purposes of this Guaranty, “tangible net worth” means, as of a given
date, Guarantor’s equity calculated in conformance with generally accepted accounting principles by subtracting total liabilities from total tangible assets. 

3.15     Liquidity Covenant.    At all times until the Guaranteed
Obligations have been fully satisfied, Guarantor shall maintain liquidity at least equal to $5,000,000.00 (the “Liquidity Requirement”). For purposes of this Guaranty, “liquidity” means cash and unencumbered,
marketable securities. 
 3.16     Financial
Reports.    Guarantor agrees to furnish to Lender quarterly and annual financial statements, including a balance sheet and a statement of revenues and expenses, together with an officer’s certificate confirming
Guarantor’s compliance with the Net Worth Requirement and the Liquidity Requirement, within thirty (30) days after each calendar quarter and within ninety (90) days after the end of each calendar year, in both hardcopy and electronic
format, and in each case certified by an officer of Guarantor. The financial statements shall be in the form of the financial statements provided as of the date hereof or such other form reasonably acceptable to Lender and, in each case, prepared in
accordance with consistently applied accounting methods reasonably acceptable to Lender. So long as this Agreement shall remain in effect, Guarantor, with reasonable promptness, will deliver to Lender such other information with respect to Guarantor
as Lender may from time to time reasonably request. 

  
 8 

 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 

4.1     Guarantor Due Diligence and Benefit.    Guarantor represents and
warrants to Lender that (a) the Loan and this Guaranty are for commercial purposes, (b) it has had adequate opportunity to review the Loan Documents, (c) it is fully aware of obligations of Borrower thereunder and of the financial
condition, assets and prospects of Borrower, and (d) it is executing and delivering this Guaranty based solely upon its own independent investigation of the matters contemplated by clauses (a)-(c) and in no part upon any representation,
warranty or statement of Lender with respect thereto. 
 4.2    
General.    Guarantor represents and warrants that: 

 (a)     Authority.    Guarantor has the power and authority to
execute and deliver this Guaranty and to perform its obligations hereunder. If Guarantor is not an individual: (i) Guarantor is duly organized, validly existing and in good standing under the laws of the state of its formation, and
(ii) the execution, delivery and performance of this Guaranty by Guarantor has been duly and validly authorized by all necessary action of Guarantor and the person signing this Guaranty on Guarantor’s behalf has been validly authorized and
directed to sign this Guaranty by all necessary action of Guarantor. 
  (b)    
Valid and Binding Obligation.    This Guaranty constitutes Guarantor’s legal, valid and binding obligation, enforceable against it in accordance with its terms, except to the extent enforceability may be limited under
applicable bankruptcy and insolvency laws and similar laws affecting creditors’ rights generally and to general principles of equity. 
  (c)     No Conflict with Other Agreement.    Guarantor’s execution, delivery and performance of this Guaranty will not (i) violate
Guarantor’s organizational documents if Guarantor is not an individual, (ii) result in the breach of, or conflict with, or result in the acceleration of, any obligation under any material guaranty, indenture, credit facility or other
instrument to which Guarantor or any of its assets may be subject, or (iii) violate any order, judgment or decree to which Guarantor or any of its assets is subject. 

 (d)     No Pending Litigation.    No action, suit, proceeding or
investigation currently is pending or, to the best of Guarantor’s knowledge, threatened against Guarantor which, either in any one instance or in the aggregate, may have a material, adverse effect on Guarantor’s ability to perform its
obligations under this Guaranty. 
  (e)    
Consideration.    Guarantor will derive substantial benefit from the Loan to Borrower. 
  (f)     No Security Interests Granted.    Guarantor has not granted a security interest in any of Guarantor’s real or personal property which,
either in any one instance or in the aggregate, may have a material, adverse effect on Guarantor’s ability to perform its obligations under this Guaranty. 

  
 9 

  (g)     No Tax Liens.  No federal
or state tax lien has been filed against any of the Guarantor or any of its assets. 

 (h)     Bankruptcy.    Guarantor has not filed any voluntary
petition for bankruptcy, assignment for the benefit of its creditors, receivership or any other similar action seeking relief from or rearrangement of its respective debts, nor has Guarantor received service or other notice of any proceeding seeking
to have Guarantor declared involuntarily bankrupt, or insolvent, or seeking to have a receiver for Guarantor appointed, under the laws of the United States or any state thereof, nor, to Guarantor’s actual knowledge, has any such action been
threatened. Guarantor is solvent and is not contemplating any such proceedings. 
 ARTICLE V 

MISCELLANEOUS 
 5.1     Notices.  Any notice, request, demand, statement, consent or other communication (“Notice”) made hereunder shall be in writing signed by the
party giving such Notice, and shall be deemed to have been properly given when (a) delivered personally or such personal delivery is refused, (b) delivered to a reputable overnight delivery service providing a receipt, or
(c) deposited in the United States Mail, postage prepaid and registered or certified mail return receipt requested, at the address set forth below, or at such other address within the continental United States of America as may have theretofore
been designated in writing. The effective date of any Notice given as aforesaid shall be respectively, (i) the date of personal service or refusal to accept delivery, (ii) one (1) Business Day after delivery to such overnight delivery
service, or (iii) three (3) Business Days after being deposited in the United States Mail, whichever is applicable. 

For purposes hereof, the addresses are as follows: 
  

			
	If to Lender:	 	Fireman’s Fund Insurance Company
		 	c/o Allianz of America, Inc.
		 	55 Green Farms Road, P.O. Box 5160
		 	Westport, Connecticut 06881-5160
		 	Attn: Real Estate Department
		
		 	Allianz Global Risks US Insurance Company
		 	c/o Allianz of America, Inc.
		 	55 Green Farms Road, P.O. Box 5160
		 	Westport, Connecticut 06881-5160
		 	Attn: Real Estate Department
		
	with a copy to:	 	Kelley Drye & Warren LLP
		 	200 Kimball Drive
		 	Parsippany, New Jersey 07054
		 	Attn: Paul A. Keenan, Esq.

  
 10 

			
	If to Guarantor:	 	KBS Legacy Partners Properties LLC
		 	c/o Legacy Partners Residential, Inc.
		 	4000 East Third Avenue, Suite 600
		 	Foster City, California 94404
		 	Attention: Dean Henry/Guy Hays
		
	with a copy to:	 	Schultz & Wright, LLP
		 	545 Middlefield Road, Suite 160
		 	Menlo Park, California 94025
		 	Attn: Steven Schultz, Esq.

 5.2     Entire Agreement;
Modification.    This Guaranty is the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes and replaces all prior discussions, representations, communications and agreements
(oral or written). This Guaranty shall not be modified, supplemented, or terminated, nor any provision hereof waived, except by a written instrument signed by the party against whom enforcement thereof is sought, and then only to the extent
expressly set forth in such writing. 
 5.3     Binding Effect; Joint and Several
Obligations.    This Guaranty is binding upon and inures to the benefit of Guarantor, Lender and their respective heirs, executors, legal representatives, successors, and assigns, whether by voluntary action, or death if
Guarantor is a natural person, of the parties or by operation of law. Guarantor may not delegate or transfer its obligations under this Guaranty. If there is more than one Guarantor, each Guarantor shall be jointly and severally liable hereunder.

 5.4     Unenforceable Provisions.    Any provision of this
Guaranty which is determined by a court of competent jurisdiction or government body to be invalid, unenforceable or illegal shall be ineffective only to the extent of such determination and shall not affect the validity, enforceability or legality
of any other provision, nor shall such determination apply in any circumstance or to any party not controlled by such determination. 
 5.5     Duplicate Originals; Counterparts.    This Guaranty may be executed in any number of duplicate originals, and each duplicate original shall be deemed
to be an original. This Guaranty (and each duplicate original) also may be executed in any number of counterparts, each of which shall be deemed an original and all of which together constitute a fully executed Guaranty even though all signatures do
not appear on the same document. 
 5.6     Construction of Certain
Terms.    Defined terms used in this Guaranty may be used interchangeably in singular or plural form, and pronouns shall be construed to cover all genders. Article and section headings are for convenience only and shall not
be used in interpretation of this Guaranty. The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Guaranty as a whole and not to any particular section, paragraph or other
subdivision; and the word “section” refers to the entire section and not to any particular subsection, paragraph of other subdivision; and “Guaranty” and each of the Loan Documents referred to herein mean the agreement as
originally executed and as hereafter modified, supplemented, extended, consolidated, or restated from time to time. 

  
 11 

 5.7     Governing
Law.    This Guaranty shall be interpreted and enforced according to the laws of the State of Minnesota (without giving effect to its rules governing conflict of laws). 

5.8     Consent to Jurisdiction.    Guarantor irrevocably consents and
submits to the exclusive jurisdiction and venue of any state or federal court sitting in the county and state where the Security is located with respect to any legal action arising with respect to this Guaranty and waives all objections which it may
have to such jurisdiction and venue. 
 5.9     WAIVER OF JURY TRIAL. TO
THE FULLEST EXTENT PERMITTED BY LAW, LENDER AND GUARANTOR EACH HEREBY WAIVES THEIR RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY. 

5.10     Business Day/Business Days.    The term “Business
Day” or “Business Days” as used in this Guaranty shall mean any calendar day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not open for business. 

[Remainder of Page Intentionally Left Blank; Signature Page Follows] 

  
 12 

 IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty, as a sealed
instrument, as of the day and year first above written. 
  

							
	GUARANTOR:
	
	KBS LEGACY PARTNERS PROPERTIES LLC, a Delaware limited liability company
		
	By:	 	KBS Legacy Partners Limited Partnership, a Delaware limited partnership, its sole member
			
		 	By:	 	KBS Legacy Partners Apartment REIT, Inc., a Maryland corporation, its sole general partner
			
		 		 	By: /s/ Guy K. Hays    
		 		 	Name:	 	  Guy K. Hays
		 		 	Title:	 	  Executive Vice President

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