Document:

Limited Liability Company Agreement

 Exhibit 10.24 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF JP-KBS RICHARDSON HOLDINGS, LLC

  
  

This LIMITED LIABILITY COMPANY AGREEMENT OF JP-KBS RICHARDSON HOLDINGS, LLC (this “Agreement”), is
entered into effective as of November 22, 2011, by and between JP-RICHARDSON, LLC, a Delaware limited liability company (“JV Member”), and KBS SOR RICHARDSON PORTFOLIO JV, LLC, a Delaware limited liability company
(“KBS” or “Co-Managing Member”). JV Member and KBS may hereinafter be referred to herein collectively, as the “Members” or individually as a “Member.” 

ARTICLE I 

FORMATION 
 1.01.    Formation.   The limited liability company created pursuant to this Agreement and the filing of that certain Certificate of Formation dated October 6, 2011
(the “Company”) was formed under and pursuant to the Act. The term “Act” means the Delaware Limited Liability Company Act, 6 Delaware Code, Sections 18-101 et. seq., as hereafter amended from time to time.

 1.02.    Names and Addresses.   The name of the Company is JP-KBS RICHARDSON
HOLDINGS, LLC. The principal office of the Company shall be 14801 Quorum Drive, Suite 200, Dallas, Texas 75254, until changed by the Managing Member with written notice to all of the Members. The name and address of the registered agent of the
Company in the State of Delaware currently is Corporation Services Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. The names and addresses of the Members are set forth on Exhibit A attached hereto. 

1.03.    Nature of Business.   The express, limited and only purposes of the Company
shall be (i) to acquire certain real property located in Richardson, Texas commonly known as 2425 N. Central Expressway, 2435 N. Central Expressway, 2150 Lakeside Boulevard, 2400 Lakeside Boulevard, 2100 Lakeside Boulevard and various vacant
lots, and described more particularly on Exhibit B attached hereto (each, individually a “Property”, and collectively, the “Properties”), including the improvements currently and as from time to time may be
located on each Property (collectively, the “Improvements”) (a Property and the Improvements located thereon shall sometimes be collectively referred to as, a “Project” and all the Properties and Improvements shall be
sometimes collectively referred to as the “Projects”) at the Closing currently scheduled for November 1, 2011 (the “Closing”), (ii) to transfer the Properties to the Property Owners (herein defined)
immediately after Closing, (iii) to acquire, own, manage and hold the membership interests of the Property Owners, which Property Owners shall own, lease, hold for investment, sell, exchange, dispose of and otherwise realize the economic
benefit from the Projects, and (iv) to conduct such other activities with respect to the Projects as are appropriate to carrying out the foregoing purposes and to do all things incidental to or in furtherance of the above-enumerated purposes.
The Company shall be the sole member of the limited liability companies listed in Exhibit B attached hereto (each, a Property Owner” and 

  
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collectively, the “Property Owners”), which shall acquire and own the Projects as described in Exhibit B attached hereto immediately after the Closing. 

1.04.    Term of Company.   The term of the Company shall commence on the date the
Certificate of Formation for the Company is filed with the Office of the Secretary of State of the State of Delaware and shall continue until dissolved pursuant to Article VIII. The existence of the Company as a separate legal entity shall
continue until the cancellation of the Company’s Certificate of Formation. 
 ARTICLE II 

MANAGEMENT OF THE COMPANY 
 2.01.     Management of the Company. 

(a)        Generally.   JV Member is hereby designated as the
managing member (the “Managing Member”) of the Company and shall serve as the Managing Member of the Company unless and until it resigns or is removed pursuant to Section 2.06. Subject to the restrictions set forth in
this Agreement, Managing Member shall manage and administer the day- to-day business and affairs of the Company. Managing Member shall at all times faithfully perform its duties and responsibilities in compliance with all applicable laws, the
Business Plan, the Annual Budgets and this Agreement, and in an efficient, thorough, businesslike manner, devoting such time, efforts and managerial resources to the business of the Company as is reasonably necessary for the operation of the
day-to-day business and affairs of the Company. In the performance of its duties in this Agreement, Managing Member shall regularly consult with the Co-Managing Member. Managing Member may engage in business efforts and affairs which are not related
to the Company, and will not be precluded from owning and operating other businesses and/or real estate projects and neither the Company nor the other Members shall have any interest in such businesses or real estate projects. 

(b)       Specific Day to Day Duties.   Without limiting the generality
of the foregoing, Managing Member shall perform the following duties with respect to the Projects, all to be carried out in accordance with this Agreement, the Annual Budgets and the Business Plan: 

(i)        Use reasonable commercial efforts to be obtain and cause
to be maintained all governmental and agency approvals, permits and other entitlements necessary for ownership, renovation, operation, management and leasing of the Projects. 

(ii)       Coordinate the services of all employees, supervisors,
architects, engineers, accountants, attorneys, real estate brokers, advertising personnel and other persons necessary or appropriate for the ownership, renovation, operation, management and leasing of the Projects. 

(iii)      Supervise the performance of all work in connection with the
ownership, renovation, operation, management and leasing of the Projects. 

(iv)      Use reasonable efforts to enforce all of the Company’s and the
Property Owners’ rights and cause performance of all of the Company’s and the Property Owners’ obligations arising in connection with any contract or agreement entered into in 

  
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connection with the Projects, excluding de minimis obligations where the cost to pursue the obligation exceeds the benefit to be gained. 

(v)       Deliver to the Members copies of any written notices or other
written materials received by Managing Member (irrespective of whether such notice or materials were sent directly to Managing Member, the Company or a Property Owner) in connection with any material dispute or material claims relating to the
Projects. 
 (vi)      Otherwise diligently perform those duties and
services that are reasonably necessary in order to acquire, own, renovate, operate, manage and lease each Project in accordance with the Business Plan, the applicable Annual Budget and this Agreement. 

As used in this Agreement, the term “Loan” means the loan to the Company in the maximum aggregate amount
of $46,100,000 from General Electric Capital Corporation (“GECC”), and secured by the Projects pursuant to loan documents approved by the Members and the term “Refinance” means any refinance, modification, extension
or substitution of the Loan, or any new loan affecting any or all of the Projects. The Loan will be assumed by the Property Owners upon transfer of the Projects to the Property Owners. 

(c)      Additional Duties.   Without limiting the generality of the
foregoing, Managing Member shall have the following additional duties with respect to the overall operation of the Company and the ownership by the Company of the Property Owners, which in turn will own the Projects, all to be carried out in
accordance with this Agreement: 
 (i)        Provide
operating reports and financial statements in accordance with Article IX. 

(ii)       Notify Co-Managing Member of such matters and render such
reports to Co-Managing Member from time to time as Co-Managing Member may reasonably request in writing, including, without limitation, at all times and in each event no less frequently than monthly, keeping Co-Managing Member informed of material
information relating to the Projects by (1) notifying Co-Managing Member in advance of public hearings and other proceedings relating to any existing or proposed entitlements, mapping, subdivision or material permits for the Projects and
(2) notifying Co-Managing Member within five (5) business days and promptly delivering to Co-Managing Member copies of any written offers to purchase or otherwise acquire any or all of the Projects, or any interest therein, and of any
written indications of interest, written invitations to deal, written solicitations of sales which represent bona fide offers specifically tailored to any or all of the Projects, and which shall specifically exclude generic or cold call type letters
seeking to purchase properties generally. 
 (iii)      Complying with
the Annual Budgets, as they may be modified under Section 2.10 below; provided however that Managing Member shall be entitled to incur expenditures not provided in any Annual Budget which do not exceed (1) the sum of $5,000 as to
any single expenditure, and (2) the sum of $75,000 as to any such expenditures in the aggregate for any calendar year which shall be reported to Co-

  
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Managing Member by no later than the delivery of the next monthly operating report (such expenditures may hereinafter be referred to as the “De Minimis Expenditures”).

 (d)      Affiliate Agreements; Special Powers of KBS Regarding Affiliate
Agreements. 
 (i)        JV Member may not cause the
Company or any Property Owner to enter into any Affiliate Agreement or amend, modify or terminate any such Affiliate Agreement after the entry by the Company or a Property Owner, as applicable, into such Affiliate Agreement without the prior consent
of Co-Managing Member. 
 (ii)       Notwithstanding anything to
the contrary contained herein but subject to Section 2.06(d) below, Co-Managing Member shall have the right, in its sole but reasonable discretion upon prior written notice to JV Member, to take all actions on behalf of the
Company or a Property Owner, as applicable, with respect to: (A) the determination of the existence of any default by any Affiliate of JV Member under any Affiliate Agreements made between the Company or a Property Owner, as applicable, and any
Affiliate of JV Member, (B) the enforcement of all rights and remedies of the Company or a Property Owner, as applicable, under any Affiliate Agreements made between the Company or a Property Owner, as applicable, and any Affiliate of JV
Member, and (C) termination of any Affiliate Agreements made between the Company and any Affiliate of JV Member (subject to the terms and conditions set forth therein for notice of defaults and applicable cure periods). JV Member will cooperate
in good faith with Co-Managing Member in the exercise by Co-Managing Member of the foregoing rights and actions hereunder. 
 (iii)      As used in this Agreement, the term “Affiliate” means any person or entity which, directly or indirectly through one (1) or more intermediaries,
controls or is controlled by or is under common control with another person or entity. The term “control” as used herein (including the terms “controlling,” “controlled by,” and “under common control with”)
means the possession, direct or indirect, of the power (i) to vote 51% or more of the outstanding voting securities of such person or entity, or (ii) to otherwise direct management policies of such person by contract (at commercially
reasonable rates) or otherwise. The term “Affiliate Agreement” means any agreement for the provision of goods and/or services between the Company or a Property Owner and any Affiliate of Managing Member or any other person or entity
in which Managing Member (or any person or entity having a direct or indirect interest therein) owns a direct or indirect interest therein. 

  
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 2.02.    Major Decisions.   Notwithstanding
anything contained in this Agreement to the contrary, Managing Member shall not take, or cause or permit the Company or any Property Owner to enter into any agreement to take, any of the following actions on behalf of the Company or any Property
Owner (in each case the taking of which hereinafter shall be referred to as a “Major Decision”) without the prior written consent of Co-Managing Member, which may be given or withheld in Co-Managing Member’s sole and absolute
discretion. 
 (a)       Annual Budgets; Business Plan.  
Subject to Section 2.01(c)(iii) deviate in from, amend or replace the Business Plan or deviate from, amend or replace any Annual Budget (including any Renovation Budget) except as provided in Section 2.10 below. 

(b)      Sale of the Company or the Project.   Subject to Articles VI
and VII, sell, convey, exchange, hypothecate, pledge, encumber or otherwise transfer any portion of or any interest in the Company, a Property Owner or a Project, or enter into any agreement to sell, convey, exchange, hypothecate, pledge,
encumber or otherwise transfer any portion or any interest in the Company, a Property Owner or a Project. 

(c)      Management and Leasing Agreements.   Amend, modify, terminate, or
waive any rights under, the Management Agreement or the Leasing Agreement (as each term is defined below) (and with respect to the Leasing Agreement, after approval of the Leasing Agent and Leasing Agreement by Co-Managing Member pursuant to
Section 2.11(b) below), or enter into any replacement management agreement or leasing agreement. 

(d)      Acquire Real Property or Ownership Interest.   Purchase or otherwise
acquire any interest in real property or in any entity other than the Company’s interest in the Property Owners. 
 (e)      Financing.   Cause the Company or a Property Owner to finance or refinance the operations of the Company or a Property Owner, as applicable, and/or any
of the assets of the Company and the Property Owners (including, without limitation, any acquisition, development, construction, interim and long-term financing or refinancing in connection with a Project or the improvement, renovation or expansion
thereof), enter into any Refinance, or retain any mortgage bankers or brokers on behalf of the Company or the Property Owners, as applicable, in connection therewith or enter into any modifications, amendments or other agreements regarding the
Company’s or the Property Owners’ financing or to amend or modify in any respect the Loan or any Refinance. 
 (f)       Indemnity.   Make, execute or deliver on behalf of the Company or the Property Owners any indemnity bond or surety bond or obligate the Company, a
Property Owner or any other Member as a surety, guaranty, guarantor or accommodation party to any obligation or grant any lien or encumbrance on any of the assets of the Company or the Property Owners, including the Projects. 

(g)       Loans.   Lend funds belonging to the Company or a Property
Owner to any Member or its Affiliate or to any third party, or extend any person, firm or corporation credit on behalf of the Company or a Property Owner or cause any Member Loan to be made to the Company or a Property Owner as provided in
Section 3.04. 

  
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 (h)      Distributions.   Based
on cash flow projections and analysis prepared by Managing Member, determine whether or not there is sufficient Net Cash so that distributions may be made to the Members in accordance with this Agreement, and make any distribution to the Members. As
used in this Agreement, the term “Net Cash” means the gross cash receipts of the Company from all sources as of any applicable date of determination, less the portion thereof used to pay (i) all cash disbursements (inclusive of
any guaranteed payment within the meaning of Section 707(c) of the Code paid to any Member, including, without limitation, any reimbursements made to any Member and any amounts applied to repay any Member Loans, of the Company prior to that
date); and (ii) all reserves, established by the Annual Budgets or otherwise approved by the Members for anticipated cash disbursements that will have to be made before additional cash receipts from third parties will provide the funds
therefor, including for payment of debt service, capital improvements and other anticipated contingencies and expenses of the Company and the Property Owners. 
 (i)       Expenditures.   Except for De Minimis Expenditures, take any action or make any expenditure or incur any obligation by or on behalf of the Company
or a Property Owner which is not included in the Annual Budgets (including, without limitation, obligating the Company or a Property Owner to pay for any goods or services in excess of the foregoing), in addition, in the event that the then current
Loan or Refinance is within ninety (90) days of its stated maturity, or after its term has expired, or is in default, Managing Member may not reallocate any excess funds among line items or make any expenditures from any reserves without
Co-Managing Member’s consent. 
 (j)       Duties.  
Delegate any of the duties of Managing Member set forth herein except as set forth in the Management Agreement or the Leasing Agreement or any other approved contract with an Affiliate under the terms of this Agreement or to the officers and
employees of Managing Member. 
 (k)       Assignment Benefiting
Creditors.   Make, execute or deliver on behalf of the Company or any Property Owner an assignment for the benefit of creditors; file, consent to or cause the Company, a Property Owner, a Member’s Interest, or any Project, or any
part thereof or interest therein, to be subject to the authority of any trustee, custodian or receiver or be subject to any proceeding for bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, relief of debtors, dissolution or
liquidation or similar proceedings. 
 (1)       Partition of Company
Assets.   Partition all or any portion of the assets of the Company or a Property Owner, or file any complaint or institute any proceeding at law or in equity seeking such partition. 

(m)       Governmental Proposals.   Make application to, or enter into,
or cause the Company or any Property Owner to enter into any agreements with, any government officials relating to mapping, development, zoning, subdivision, environmental or other land use or entitlement matters which may affect the Projects.

 (n)       Purchase Assets.   Except as may be provided in the
then-applicable Annual Budgets, purchase any automobiles or vehicular equipment on behalf of or in the name 

  
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of the Company or a Property Owner or purchase any fixed assets on behalf of or in the name of the Company or a Property Owner. 

(o)       Commence Renovations or On or Off-Site Improvements.   Commence
the Renovations (defined below) unless and until the applicable detailed Renovation Budget (defined below) has been approved by Co-Managing Member pursuant to Section 2.10(b) below. Except as otherwise expressly provided for in any
Business Plan, Annual Budget (and/or the Renovation Budget after approval by Co-Managing Member as set forth herein) or in any lease approved by the Co-Managing Member, undertake any Renovations (defined below) or significant construction on any
Project (including, without limitation, any tenant improvements) or any significant off-site improvement work, any environmental remediation on any Project, except tenant improvements allowed within the Leasing Guidelines attached hereto as
Exhibit H. 
 (p)       Confess Judgments: Legal
Actions.   Confess a judgment against the Company; settle or adjust any claims against the Company or a Property Owner; or commence, negotiate and/or settle any legal actions or proceedings brought by the Company or a Property Owner
against unaffiliated third parties; provided however that Managing Member may settle or adjust any claim which is not the subject of a legal action or proceeding of $10,000 or less. 

(q)       Dissolve the Company.   Except as provided in this Agreement,
dissolve, terminate or liquidate the Company or any Property Owner. 
 (r)      
Acts Making Business Impossible.   Do any act that would make it impossible to carry on the business of the Company or any Property Owner. 
 (s)       Material Agreements.   Except as provided in the Annual Budgets or in the express terms of this Agreement or the Management Agreement, cause the
Company to enter into any agreement obligating the Company or any Property Owner to pay an amount of more than $10,000 and any amendment, modification or termination of any such agreement, including, without limitation, any agreement providing for
the payment of any commission, fee or other compensation payable in connection with the sale of any Project. 

(t)       Limited Liability Company Act.   Take any other action for
which the consent of the Members is required under the Act. 
 (u)      
Leases.   Cause or permit the Company or a Property Owner to enter into any new space or other lease affecting a Project, or amend, modify, terminate, or waive rights under any existing leases, for space in any of the Projects,
except that the Managing Member may lease space to new tenants or modify leases for existing tenants in accordance with the Leasing Guidelines attached hereto as Exhibit H. 

(v)       Insurance; Accounting.   Change the insurance program for the
Company, a Property Owner or a Project in a manner inconsistent with the Business Plans or inconsistent with the insurance requirements set forth in Section 2.05 below or alter or change the reporting, accounting and/or auditing systems
and/or procedures for the Company, a Property Owner, or a Project. 

  
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 (w)       Employees.  
Employ any individuals as an employee of the Company or a Property Owner. 

(x)       Awards and Proceeds.   Settle, apply or dispose of any casualty
insurance proceeds or any condemnation award, any insurance company or any condemning authority, as applicable. 
 (y)       No REIT Prohibited Transactions.   Take, or permit to be taken, any action that is or results in a REIT Prohibited Transaction. 

(z)       Pledge and Assignment.   Subject to the provisions of
Article VI below, sell, transfer or pledge JV Member’s interests in the Company. Sell, transfer, encumber, or pledge the Company’s interests in the Property Owners. 

(aa)     Consultants.   Retain or dismiss on behalf of the Company or a Property
Owner any accountants, auditors, property managers or leasing agents. 
 (bb)    
Additional Capital Contributions.   Except as expressly set forth in Section 3.01 below or otherwise approved by the Members in writing, require any additional capital contributions of the Members. 

(cc)     Member Loans. Except as expressly set forth in Section 3.04 or otherwise
approved by the Members in writing, require or request any Member Loan. 
 The Members agree that the Major
Decisions set forth in this Section 2.02 require the prior written consent of the Co-Managing Member in its sole and absolute discretion. Failure by Co-Managing Member to approve any Major Decision in writing within ten
(10) days after Co-Managing Member’s receipt of a request therefor from Managing Member shall be deemed a disapproval of such Major Decision. The disapproval (or deemed disapproval) of a Major Decision shall not be construed as a
dispute, controversy or a disagreement under this Agreement between the Members and shall not be subject to the arbitration provision set forth in Section 10.07 below. 

2.03.     Company Funds.   No funds, assets, credit or other resources of the
Company or the Property Owners of any kind or description shall be paid to, or used for, the benefit of any Member, except as specifically provided in this Agreement or the Annual Budgets or after the written approval of all the Members has been
obtained. All funds of the Company and the Property Owners shall be deposited only in such federally insured checking and savings accounts with banks and other financial institutions having not less than $1,000,000,000 in assets as the Co-Managing
Member shall approve in writing, shall not be commingled with funds of any other person or entity, and shall be withdrawn only upon such signature or signatures as may be designated in writing from time to time by Managing Member after
receiving approval of the Co-Managing Member. Co-Managing Member hereby pre-approves Frost Bank N.A. as the initial holder of the Company’s bank accounts. 

2.04.     Employees.   Neither the Company nor the Property Owners shall have
employees. Each Member shall be solely responsible for all wages, benefits, insurance and payroll taxes with respect to any of its employees. Each Member agrees to perform its duties 

  
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under this Agreement as an independent contractor and not as the agent, employee or servant of the Company. Each Member shall be solely responsible for its own acts and those of its subordinates,
employees and agents during the term of this Agreement and, subject to, and without the waiver of the benefits of, the provisions of Section 2.09, each Member hereby indemnifies and holds harmless the Company and each other Member from
any liabilities, damages, costs and expenses (including, without limitation, reasonable attorneys fees) arising from the acts of any such subordinates, employees and agents of such Member. 

2.05.    Insurance. 

(a)       Company Policies.   Managing Member shall purchase and
maintain, or shall cause to be purchased and maintained, for and at the expense of the Company, policies of insurance (i) for the Company’s operations, (ii) for the protection of the Company’s assets (including the Projects), and
(iii) as may be reasonably required to comply with third-party requirements in accordance with guidelines approved by Co-Managing Member, and shall provide the Members upon request with the certificates or other evidence of insurance coverage
as provided therein. 
 (b)       Contractor’s Insurance
Obligations.   Managing Member shall require the Projects’ general contractors and all subcontractors to obtain and maintain at all times during performance of work for the Company and the Property Owners, as applicable, an
occurrence form commercial general liability policy on a primary and non-contributing basis with a minimum of $1,000,000 per occurrence/$1,000,000 annual aggregate, or in each case, in such other amounts as may be approved by the Co-Managing Member,
on which the Company and the applicable Property Owner is named as an additional insured. In addition, Managing Member shall require that the Project’s general contractors and all subcontractors carry worker’s compensation coverage as
required by law. 
 (c)       D&O Insurance.   Managing
Member may purchase and maintain insurance on behalf of the executive officers of Managing Member (and if requested by Co-Managing Member, executive officers of Co-Managing Member) against liability asserted against such Person and incurred by such
Person arising out of such Persons’ actions on behalf of Managing Member (or Co-Managing Member, as applicable) under this Agreement; provided that the cost of such insurance is included in the approved Annual Budgets for the applicable year
and such coverage is available at commercially reasonable rates. 
 2.06.    Election,
Removal, Resignation. 
 (a)       Number, Term and
Qualifications.   The Company shall have one Managing Member, which shall initially be JV Member. Other than in circumstances in which JV Member as Managing Member is removed pursuant to Section 2.06(b) or resigns pursuant
to Section 2.06(c), a new Managing Member may not be appointed except as set forth in Section 2.06(d) below. Managing Member shall be a Member, but need not be an individual, a resident of the state in which the Property is
located, or a citizen of the United States. 
 (b)      
Removal.   Except as provided in this Section 2.06(b) with respect to JV Member as Managing Member, Managing Member may not be removed as Managing Member 

  
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of the Company. Managing Member may be removed as Managing Member (but not as a Member) solely as a result of the occurrence of a Just Cause Event at any time upon thirty (30) days prior
written notice (“Removal Notice”) from KBS to JV Member. 
 For purposes of this
Section 2.06(b), “Just Cause Event” shall mean: 

(i)        JV Member or any principal, officer, executive or employee
of JV Member has committed fraud related to the Company, a Property Owner or a Project or has embezzled funds of the Company or a Property Owner. 

(ii)       JV Member or any principal, officer, executive or employee of
JV Member has committed an act of gross negligence or willful misconduct in the performance of its obligations under this Agreement. 
 (iii)      JV Member has materially breached its obligations as Managing Member under this Agreement and such breach was not timely cured within thirty (30) days of written
notice from Co-Managing Member. 
 (iv)      The filing of any
bankruptcy, insolvency or receivership proceedings affecting JV Member which is not dismissed within ninety (90) days, or any assignment for the benefit of creditors by JV Member. 

(c)       Resignation.   Managing Member may resign as Managing Member
(but not as a Member) upon ten (10) days prior notice to the other Member; provided, however, that if JV Member in its capacity as Managing Member delivers a notice of resignation after either (i) a Removal Notice from KBS has been
delivered but before the 30-day removal period has expired, or (ii) a notice of a Just Cause Event from KBS has been delivered but before any cure period has expired, JV Member’s resignation shall not alter, limit or circumvent, or be
construed to alter, limit or circumvent, the effect of the occurrence of the applicable Just Cause Event under this Agreement, including under Section 2.06(d) below and, if applicable, the application of Section 5.02 below,
by virtue of the fact that JV Member may have resigned prior to its formal removal as Managing Member. 

(d)       Effect of Removal or Resignation.   Upon the removal or
resignation of JV Member as Managing Member (but not as a Member) in accordance with Section 2.06(b) or Section 2.06(c), as applicable, KBS (or its designee) may: 

(i)        terminate any agreement between the Company or any
Property Owner and JV Member or Affiliates of JV Member; 

(ii)       replace JV Member as Managing Member with itself (or its
designee) and KBS (or such designee) shall have all of the duties and obligations of Managing Member under this Agreement; provided, however, that KBS (or its designee) shall not thereafter be required to obtain the consent or approval of JV Member
to any Major Decision); and 
 (iii)      if JV Member is removed as
Managing Member as a result of a Just Cause Event described in Section 2.06(b)(i) or (ii), then from and after the date of 

  
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such removal, any and all Net Cash of the Company thereafter shall be distributed in accordance with the provisions of Section 5.02. 

2.07.    Members Have No Managerial Authority.  The Members shall have no power to
participate in the management of the Company, except as expressly authorized by this Agreement. 

2.08.    Meetings.  The Company shall not be required to hold regular meetings of
Members. Any Member may call a meeting of Members for the purpose of discussing Company business. Unless otherwise approved by the Members, any meeting of Members shall be held during normal business hours either telephonically or in person at the
Company’s principal office on such day and at such time as are reasonably convenient for the Members. 

2.09.    Liability and Indemnity.  No Member (nor any officer, director, member,
manager, constituent partner, agent or employee of a Member) shall be liable or accountable in damages or otherwise to the Company or to any other Member for any good faith error of judgment or any good faith mistake of fact or law in connection
with this Agreement, or the services provided to the Company except in the case of willful misconduct or gross negligence. To the maximum extent permitted by law, the Company does hereby indemnify, defend and agree to hold each Member (and each such
officer, director, member, manager, constituent partner, agent or employee) wholly harmless from and against any loss, expense or damage (including, without limitation, attorneys’ fees and costs) suffered by such Member (and/or such officer,
director, member, manager, constituent partner, agent or employee) by reason of anything which such Member (and/or such officer, director, member, manager, constituent partner, agent or employee) may do or refrain from doing hereafter for and on
behalf of the Company and in furtherance of its interest; except in the case of willful misconduct or gross negligence. To the maximum extent permitted by law, each Member does hereby indemnify, defend and agree to hold the Company and each other
Member wholly harmless from and against any loss, expense or damage (including, without limitation, attorneys’ fees and costs) suffered by the Company or such other Member as a result of such indemnifying Member’s willful misconduct or
gross negligence in performing or failing to perform such indemnifying Member’s duties hereunder. 

2.10.    Business Plan and Annual Budgets. 

(a)       Attached hereto as Exhibit C is a plan which sets forth the general
description of the overall business plan of the Company with respect to the Projects (the “Business Plan”), which has been prepared by Managing Member on behalf of the Company, and which is hereby approved by the Co-Managing Member.
Notwithstanding the approval of such Business Plan by the Co-Managing Member, in the event of any conflict or inconsistency between any provision of the Business Plan and any provision of this Agreement, the provisions of this Agreement shall
control and supersede the provisions of the Business Plan. On or before the Update Date (defined below) in any year, Managing Member shall prepare an update and any other necessary modifications to the Business Plan for Co-Managing Member’s
review and approval. 

  
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 (b)       Attached hereto as Exhibit
D is an “Annual Budget” for each Project (collectively, the “Annual Budgets”) that have been approved by the Co-Managing Member (except as set forth in this Section 2.10(b)) and sets
forth, by category, the estimated costs that are projected to be incurred for the remainder of the 2011 fiscal year in connection with the ownership, renovation, construction, and leasing of the applicable Projects. The initial Annual Budgets (and
each subsequent Annual Budget to the extent applicable until the completion of the renovations to be made by the Company at the Project as described in the Business Plan (the “Renovations”)) includes a budget setting forth the
estimated renovation costs to be incurred by the Company in connection with the renovation and construction of the Project (the “Renovation Budget”). On or before November 30, 2011, and on or before the last business day of
November of each year thereafter (each an “Update Date”), Managing Member shall prepare new Annual Budgets for the Projects which shall be required to be approved by the Co-Managing Member, which shall set forth, (A) by
individual category, the costs and expenses projected to be incurred by the Company and/or the applicable Property Owner for the ensuing fiscal year. 
 (c)       If any Annual Budget (excluding any portion which constitutes the Renovation Budget), or any category thereof, is not approved by the Members for any fiscal
year as of the commencement of such fiscal year (or other period), then the approved categories of such proposed Annual Budget shall be in effect, but as to the categories which were disapproved, one hundred five percent (105%) of the
applicable approved Annual Budget line items, shall be in effect until the Co-Managing Member approves the new Annual Budget as to such categories. Adjustments to the last approved Annual Budget shall automatically be made to reflect actual
increases in real property taxes, insurance premiums, utility charges and payments required under contracts to which the Company or the applicable Property Owner, as applicable, is a party at the time of the expiration of the Annual Budget, and
shall not require KBS consent. 
 (d)       The Managing Member shall have
the right at any time during the year to propose a revised or updated any Annual Budget (each, a “Revised Annual Budget”) for the balance of the fiscal year. The Managing Member shall circulate the Revised Annual Budget to the
Co-Managing Member for its consent. If the Co-Managing Member consents in writing to the Revised Annual Budget, it will become the Annual Budget for the applicable Project for the balance of the fiscal year; otherwise, the applicable approved Annual
Budget shall continue in effect. 
 (e)       Managing Member shall have the
right, power and authority, without the consent of any other Member, to cause the Company or a Property Owner to incur emergency expenditures not included in the Annual Budgets to the extent Managing Member reasonably believes that such expenditures
are necessary following a casualty or other comparable event to prevent imminent damage to persons or property on or about the Projects (and shall notify each other Member prior to making such expenditures to the extent reasonably possible under the
circumstances). With respect to any Renovation Budget, Managing Member may, (i) to the extent covered by contingency funds in the Renovation Budget, with respect to any line item in such Renovation Budget, allocate from such contingency funds
the lesser of 10% of such line item and $25,000, and (ii) if after the completion of any item, as certified by Managing Member to KBS, there remains an excess undisbursed balance, reallocate from such excess balance to any other line item in
such Renovation Budget whose funds are insufficient to complete such item, so 

  
 12 

 
long as such amount does not exceed the lesser of 10% of such line item and $25,000; provided, however, in no event may any line item (contingency or otherwise) be reallocated to pay any fees or
expenses to Managing Member. 
 (f)        Except as otherwise provided
in this Agreement and subject to the terms and conditions herein, Managing Member shall have the right, power and authority to expend funds on behalf of the Company (with Company funds) or a Property Owner (with Property Owner funds) for any of the
items set forth in, and with respect to, the period covered by an approved Annual Budget, without the further consent of KBS. 
 2.11.    Management and Leasing Agreements. 
 (a)       The Company shall cause each Property Owner to enter into a property management agreement substantially in the form of Exhibit E attached hereto (the
“Management Agreement”) with Sooner National Property Management, L.P. (the “Property Manager”) or such other entity approved by the Managing Member and the Co-Managing Member. The fee payable to
Property Manager shall be as set forth in the Management Agreement. Co-Managing Member hereby approves the Property Manager and Exhibit E as the Management Agreement. 

(b)       The Company shall also cause each Property Owner to enter into a leasing
agreement substantially in the form of Exhibit F attached hereto (the “Leasing Agreement”) with J&P Realty Services, Inc. (the “Leasing Agent”) or such other entity approved by the
Managing Member and the Co-Managing Member. The fee payable to Leasing Agent shall be as set forth in the Leasing Agreement. Co-Managing Member hereby approves the Leasing Agent and Exhibit F as the Leasing Agreement. 

(c)       Each of the initial Property Manager and the initial Leasing Agent is an
Affiliate of JV Member, and therefore, the initial Management Agreement and the initial Leasing Agreement are Affiliate Agreements for purposes of Section 2.01 (d) 

2.12.    Reimbursement and Fees. 

(a)       Reimbursements. 

Except as otherwise provided by this Agreement, none of the Members (or their respective Affiliates and/or other
representatives) shall be paid any compensation for rendering services to the Company. Each Member shall be reimbursed for any costs and/or expenses incurred by such Member on behalf of the Company that relate to the business and affairs of the
Company to the extent such Member had authority to act on behalf of the Company (without reduction to such Member’s capital account in the Company maintained in accordance with Treasury Regulations Section 1.704(b)(2)(iv) (each a
“Capital Account”)); provided, however, that except as otherwise provided in this Agreement or in any Annual Budget no Member shall be reimbursed for any such costs and/or expenses that exceed an aggregate amount of $2,000 during
any calendar year without Approval of the Members. As used in this Agreement, the term: “Treasury Regulation” means any proposed, temporary, and/or final federal income tax regulation promulgated by the United States
Department of the Treasury as heretofore and 

  
 13 

 
hereafter amended from time to time (and/or any corresponding provisions of any superseding revenue law and/or regulation). 

(b)       Acquisition Fee.  The JV Member shall be paid an acquisition
fee in an amount equal to $476,550, which represents 1% of the purchase price of the Projects. Such fee shall be payable upon the closing of the escrow for the acquisition of the Projects. 

(c)       Reimbursement for Pre-Formation Costs.  At or within 5 business
days after the acquisition of the Projects by the Company, the Company shall reimburse KBS and JV Member for any and all legal and accounting fees, organizational costs and any other formation and due diligence costs incurred by KBS and JV Member
(and/or any Affiliate or representative thereof) in connection with the formation of the Company, the negotiation and documentation of this Agreement and the acquisition of the Projects. The foregoing reimbursements shall not be debited to or
otherwise reduce any Member’s Capital Account. KBS and JV Member shall use good faith commercially reasonable efforts to cause all such amounts to be reimbursed hereunder to be included in the Company’s final escrow closing statement for
the acquisition of the Projects. 
 2.13.     Limited Liability.  Except
as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not be obligated
personally for any such debt, obligation or liability of the Company solely by reason of being a Member of the Company. 

ARTICLE III 

MEMBERS’ CONTRIBUTIONS TO COMPANY 
 3.01.     Initial Capital Commitments. 

(a)       JV Member.    JV Member shall commit to contribute to the
capital of the Company, in cash, an aggregate amount equal to 10% of the initial equity necessary to acquire the Projects and capitalize the Company which shall be equal to $1,632,601.16 based on the sources and uses schedule attached hereto as
Exhibit G. 
 (b)       KBS.    KBS shall commit to
contribute to the capital of the Company, in cash, an aggregate amount equal to 90% of the initial equity necessary to acquire the Projects and capitalize the Company which shall be equal to $14,693,410.46 based on the sources and uses schedule
attached hereto as Exhibit G. 
 3.02.     Additional Capital
Commitments.   If any Mandatory Operating Expenses and/or Approved Capital Expenditures (as each such term is defined below) incurred, or expected to be incurred, for any period shall exceed the funds that the Company has, or will
have, available during such period, then at the written request of either Member, Managing Member shall require additional capital contributions (“Additional Operating Contributions”) from the Members in an aggregate
amount sufficient to cover such shortfall. Additionally, if at any time, Managing Member (with the approval of the Co-Managing Member) determines that additional capital contributions are needed for Uncovered Operating Expenses (defined below),

  
 14 

 
the Managing Member may require (with the approval of the Co-Managing Member) from time to time additional capital contributions to the Company (“Additional Uncovered Operating
Contributions” and, together with Additional Operating Contributions, “Additional Capital Contributions”) from the Members in amounts necessary to fund such Uncovered Operating Expenses. Each Member
shall contribute to the Company its share of Additional Capital Contributions under this Section 3.02 in accordance with its Percentage Interest in cash on or before the due date specified in the notice from the Managing Member, which
due date shall not be less than fifteen (15) days from the date of such written notice. No Member shall be obligated to fund Additional Capital Contributions authorized under this Section 3.02 more often than once during any
calendar month. 
 The term “Mandatory Operating Expenses” shall mean
(a) all monthly principal and interest payments payable from time to time under the Loan or any Refinance approved under Section 2.02(e) above, (b) except as otherwise provided below in this paragraph, any payment due at the
maturity date of the Loan or any Refinance approved under Section 2.02(e) above (a “Maturity Payment”), (c) all real estate taxes payable for the Projects, and (d) all insurance premiums
payable with respect to insurance carried or the Projects. The term “Approved Capital Expenditures” shall mean all capital expenditures approved in any Annual Budget and/or required to be incurred pursuant to the terms
of any lease entered into by the Company in accordance with the provisions of this Agreement. The term “Uncovered Operating Expenses” shall mean all operating expenses of the Projects that are not considered Mandatory
Operating Expenses or Approved Capital Expenditures. Notwithstanding the foregoing, a Maturity Payment shall not be a Mandatory Operating Expense for the purposes of this Agreement if Co-Managing Member has disapproved a Refinance requested by
Managing Member pursuant to Section 2.02(e) above and such disapproved Refinance was on commercially reasonable market and customary terms and did not require a guaranty, indemnity or other undertaking from Co-Managing Member or any
Affiliate of Co-Managing Member. 
 3.03.    Default in Capital
Commitment.  If JV Member or KBS (as applicable, the “Defaulting Member”) shall fail to contribute any amounts required to be contributed pursuant to Sections 3.01 or 3.02 and such failure
shall continue for at least five (5) business days following notice to the Defaulting Member, KBS or JV Member, as applicable, (the “Non-Defaulting Member(s)”) may, but shall not be obligated to,
contribute some or all of the amount required to be contributed by the Defaulting Member. If the Non-Defaulting Member contributes capital on behalf of the Defaulting Member, the Percentage Interests of the Members shall be adjusted (effective on
the date the Non-Defaulting Member makes such contribution) as if the Non-Defaulting Member contributed 150% of the amount of capital actually contributed by the Non-Defaulting Member in the manner described in the remainder of this Section. The
Percentage Interest of the Defaulting Member shall automatically be reduced (effective as of the date the Non-Defaulting Member makes the Defaulting Member’s share the Additional Capital Contribution) by the number of percentage points
determined by multiplying the Percentage Interest of the Defaulting Member immediately prior to the Non-Defaulting Member’s making the entire Additional Capital Contribution by a fraction, the numerator of which is 1.5 times the amount of the
Additional Capital Contribution made on behalf of the Defaulting Member and the denominator of which is all of the Additional Capital Contributions made by the Defaulting Member, and the Percentage Interest of the Non-Defaulting Member making the
Additional Capital Contribution of the Defaulting Member shall be increased by an equal number of 

  
 15 

 
percentage points. Additionally, if the Defaulting Member is the JV Member, JV Member shall no longer receive the 10% promote set forth in Section 5.01(b)(iii) below and the 15%
promote set forth in Section 5.01(c)(iii) below; however, GECC shall continue to be entitled to receive the Assigned Distributions as provided in Sections 5.01 (b)(ii) and (c)(ii) or Sections 5.02(b)(ii) and (c)(ii), as
applicable. 
 [remainder of page left intentionally blank] 

  
 16 

 THE PROVISIONS OF THIS SECTION 3.03, WHICH MAY CAUSE A REDUCTION IN THE PERCENTAGE
INTEREST OF A DEFAULTING MEMBER (AND A CORRESPONDING INCREASE TO THE PERCENTAGE INTEREST OF A NON-DEFAULTING MEMBER) IN THE EVENT THAT THE NON-DEFAULTING MEMBER FUNDS A DISPROPORTIONATE SHARE OF ADDITIONAL CAPITAL CONTRIBUTIONS, IS NOT INTENDED AS A
FORFEITURE OR PENALTY BUT AS COMPENSATION TO THE NON-DEFAULTING MEMBER FOR THE ADDED RISK ASSUMED IN PROVIDING A DISPROPORTIONATE SHARE OF THE CAPITAL REQUIRED BY THE COMPANY. EACH MEMBER ACKNOWLEDGES THAT THE ADJUSTMENTS PROVIDED IN THIS SECTION
3.03 ARE FAIR COMPENSATION TO A NON-DEFAULTING MEMBER THAT FUNDS A DISPROPORTIONATE SHARE OF ADDITIONAL CAPITAL CONTRIBUTIONS AND A REASONABLE ESTIMATE OF THE DAMAGES CAUSED TO THE OTHER MEMBER BY THE FAILURE OF THE DEFAULTING MEMBER TO FUND ITS
PROPORTIONATE SHARE OF ANY ADDITIONAL CAPITAL CONTRIBUTIONS, PARTICULARLY IN LIGHT OF THE UNCERTAIN FINANCIAL CONDITION OF THE COMPANY THAT IS LIKELY TO EXIST IF THE COMPANY REQUIRES ADDITIONAL CAPITAL CONTRIBUTIONS AND THE NEED TO PROVIDE FOR A
SIGNIFICANT RETURN ON INVESTMENT UNDER THOSE CIRCUMSTANCES. THE INDIVIDUAL EXECUTING THIS AGREEMENT ON BEHALF OF EACH MEMBER HAS SPECIFICALLY ACKNOWLEDGED THE PROVISIONS OF THIS SECTION 3.03 BY THE PARTY FOR WHOM HE/SHE IS ACTING. 

 

							
	 /s/ Authorized Signatory
	  		  	 /s/ Authorized Signatory
	  	
	 JV MEMBER
	  		  	 KBS
	  	

 3.04.    Member Loans.  In the event Managing
Member determines, in its reasonable discretion, that funds in addition to those otherwise obtained pursuant to Sections 3.01 are necessary for the Company to meet the Annual Budgets, Business Plan, then Managing Member shall deliver written
notice of such actual or projected cash deficit to KBS and JV Member requesting that they agree that a loan (a “Member Loan”) should be made to the Company and the interest rate to be paid to the Company. Within 10 business days
following the effective date of such notice, each such Member shall notify Managing Member (a) whether or not such Member agrees that Member Loan(s) to the Company should be made in the amount specified in Managing Member’s notice, and
(b) whether such Member elects, in its sole and absolute discretion, to make such Member Loan. If KBS and JV Member (y) agree that a Member Loan in the amount specified in Managing Member’s notice should be made, and (z) elect to
advance such funds to the Company, such funds shall be advanced by Members in proportion to their respective percentage set forth opposite such Member’s name under the column labeled “Percentage Interest” on Exhibit A attached
hereto (the “Percentage Interests”) (or as such Members otherwise agree). Any and all advances made by any Member to the Company pursuant to this Section 3.04 shall be treated as a Member Loan with recourse only to the
assets of the Company (and not to the assets of any Member), and shall bear annual interest as set forth in Managing Member’s notice. If, from any circumstances whatsoever, the Company ever receives as interest under a Member Loan in an amount
which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of 

  
 17 

 
the unpaid principal balance due under such Member Loan and not to the payment of interest. Any and all Member Loans shall be due and payable from the first available funds of the Company and in
any event upon the liquidation of the Company. The repayment of any Member Loan shall be made prior to any distributions of Net Cash or other cash proceeds to the Members, but shall be subordinate to any fees or reimbursements required to be made to
the Members and/or their Affiliates pursuant to Section 2.13. Accordingly, notwithstanding the provisions of Articles V and VIII, until any and all Member Loans are repaid in full, the Members shall draw no further
distributions from the Company and all cash or property otherwise distributable with respect to the Interests of the Members shall be paid to the Member(s) making Member Loan(s) in proportion to, and as a reduction of, the outstanding balance(s) of
such Member Loan(s), with such funds being applied first to reduce any interest accrued thereon, and then to reduce the principal amount thereof. As used in this Agreement, the term “Interest” means in respect to any Member, all of
such Member’s right, title and interest in and to the Net Profits, Net Losses, Net Cash, and capital of the Company, and any and all other interests therein in accordance with the provisions of this Agreement and the Act. As used in this
Agreement, the terms “Net Profits” and “Net Losses” mean, for each fiscal year or other period, an amount equal to the Company’s taxable income or loss, as the case may be, for such year or period, determined
in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss and deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss); provided, however,
for purposes of computing such taxable income or loss, (i) such taxable income or loss shall be adjusted by any and all adjustments required to be made in order to maintain Capital Account balances in compliance with Treasury Regulation
Section 1.704-1(b), and (ii) any and all items of gross income or gain and/or partnership and/or partner “nonrecourse deductions” specially allocated to any Member pursuant to Section 4.02 shall not be taken into
account in calculating such taxable income or loss. If KBS does not approve a Member Loan, such disapproval shall not be construed as a dispute, controversy or a disagreement under this Agreement between the applicable Members and shall not be
subject to the arbitration provision set forth in Section 10.07 below. 

3.05.    Determination of IRR Returns.  The IRR Return described in
Section 5.01 below shall be determined based upon internal rate of return of KBS and JV Member. As used in this Agreement, the term “IRR Return” means for each of KBS and JV Member the annual discount rate that when
compounded quarterly results in a net present value equal to zero when the discount rate is applied to all capital contributions by each such Member and all distributions made by the Company to each such Member pursuant to this Agreement. The IRR
Return shall be calculated using the IRR function provided in Microsoft Office Excel or any replacement software issued by Microsoft to compute internal rate of return, utilizing an annual compounding period. It is understood by the Members that the
achievement of a particular IRR Return requires both a return of all capital contributions plus a cumulative return on such capital contributions at the applicable percentage IRR Return. 

3.06.    Capital Contributions in General.  Except as otherwise expressly provided
in this Agreement or as otherwise agreed to by all Members in writing (i) no Member may withdraw all or any portion of any contribution that such Member may have made to the capital of the Company without each other Member’s consent,
(ii) no Member shall be entitled to receive interest on such Member’s contributions to the capital of the Company, and (iii) no Member shall be required or entitled to contribute additional capital to the Company. 

  
 18 

 ARTICLE IV 
 ALLOCATION OF PROFITS AND LOSSES 

4.01.     In General. 

(a)       Net Profits and Net Losses shall be allocated among the Members in such a manner
so as, to the maximum extent possible, to make each Member’s Capital Account as of the close of each year (increased by the Member’s share of “partnership minimum gain” as defined in Treasury Regulation Section 1.704-2(b)(2)
and “partner nonrecourse debt minimum gain” as defined in Treasury Regulation Section 1.704-2(i)(5)) equal the amount that the Member would receive if, as of the close of such year, all the assets of the Company were sold for their
Deemed Book Values (as determined immediately before such deemed sale), the proceeds were applied to pay all Company liabilities and the remaining net proceeds were distributed to the Members in accordance with Section 5.01 or
Section 5.02, as then applicable at the time of such allocations. As used in this Agreement, the term “Deemed Book Value” means the book value of the Company’s assets as determined under Treasury
Regulation Section 1.704-1(b)(2)(iv) (i.e., the adjusted tax basis of such assets unless there has been a revaluation of book value under Treasury Regulation Section 1.704-1(b)(2)(iv)(f)). 

(b)       The Company shall maintain “Capital Accounts” for each Member in
accordance with Treasury Regulation Section 1.704-1(b)(2)(iv). The Company shall make all adjustments required under Treasury Regulation Section 1.704-1(b)(2)(iv), including the adjustments contained in Section 1.704-1(b)(2)(iv)(g),
relating to Section 704(c) Property as set forth in Section 4.03, below. 

4.02.     Special Allocations. 

(a)       Minimum Gain Chargeback.  Notwithstanding any other provision
of this Agreement, if there is a net decrease in partnership minimum gain for a Company taxable year, each Member shall be allocated, before any other allocation of Company items for the taxable year, items of gross income and gain for the year
(and, if necessary, for subsequent years) in proportion to, and to the extent of, the amount of the Member’s share of the net decrease in Minimum Gain during the year. The income allocated under this Section 4.02(a) in any taxable
year shall consist first of gains recognized from the disposition of property subject to one or more nonrecourse liabilities of the Company, and any remainder shall consist of a pro rata portion of other items of income or gain of the Company. The
allocation otherwise required by this Section 4.02(a) shall not apply to a Member to the extent not required, as provided in Treasury Regulation Section 1.704-2(f)(2) through (5). 

(b)       Qualified Income Offset.  Notwithstanding any other provision
of this Agreement, if a Member unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that causes or increases an Adjusted Capital Account Deficit
with respect to the Member, items of Company gross income and gain shall be specially allocated to the Member in an amount and manner sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible. 

  
 19 

 (c)      Gross Income
Allocation.  If at the end of any Company taxable year, a Member has an Adjusted Capital Account Deficit, the Member shall be specially allocated items of Company income or gain in an amount and manner sufficient to eliminate the
Adjusted Capital Account Deficit as quickly as possible. 

(d)      Nonrecourse Deductions.  Any “nonrecourse deductions”
(as defined in Treasury Regulation Section 1.704-2(b)(1)) shall be allocated among the Members in accordance with their Percentage Interests. 
 (e)      Partner Nonrecourse Debt.  Notwithstanding any other provision of this Agreement, any “partner nonrecourse deductions” (as defined in
Treasury Regulation Section 1.704-2(i)(2)) shall be allocated to those Members that bear the economic risk of loss for the applicable partner nonrecourse debt, and among those Members in accordance with the ratios in which they share the
economic risk, determined in accordance with Treasury Regulation Section 1.704-2(i). If there is a net decrease for a Company taxable year in any partner nonrecourse debt minimum gain, each Member with a share of such partner nonrecourse debt
minimum gain as of the beginning of such year shall be allocated items of gross income and gain in the manner and to the extent provided in Treasury Regulation Section 1.704-2(i)(4). 

(f)      Adjusted Capital Account Deficit.  As used in this Agreement,
“Adjusted Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in the Member’s Capital Account as of the end of the relevant taxable year, after giving effect to the following adjustments:
(i) crediting thereto (A) the amount of the Member’s shares of partnership minimum gain and partner nonrecourse debt minimum gain, and (B) the amount of Company liabilities allocated to the Member under Section 752 of the
Code with respect to which the Member bears the economic risk of loss (as defined in Treasury Regulation Section 1.752-2(a)), to the extent such liabilities do not constitute partner member nonrecourse debt under Treasury Regulation
Section 1.752-2 and (ii) reduced by all reasonably expected adjustments, allocations and distributions described in Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 

(g)      Interpretation.  The foregoing provisions of this
Section 4.02 are intended to comply with Treasury Regulation Sections 1.704-1(b) and 1.704-2 and shall be interpreted consistently with this intention. Any terms used in such provisions that are not specifically defined in this Agreement
shall have the meaning, if any, given such terms in the Regulations cited above. 

4.03.  Differing Tax Basis; Tax Allocation. 

(a)      Except as otherwise provided in this Section 4.03, items of income,
gain, loss and deduction of the Company to be allocated for income tax purposes shall be allocated among the Members on the same basis as the corresponding book items are allocated under Sections 4.01 and 4.02. 

(b)      Depreciation and/or cost recovery deductions and gain or loss with respect to
each item of property treated as contributed to the capital of the Company or revalued under Treasury Regulation Section 1.704-1(b)(2)(iv)(f) shall be allocated among the Members for 

  
 20 

 
federal income tax purposes in accordance with the principles of Section 704(c) of the Code and the Treasury Regulations promulgated thereunder, and for state income tax purposes in
accordance with comparable provisions of the applicable law in the state in which the Property is located and the regulations promulgated thereunder, so as to take into account the variation, if any, between the adjusted tax basis of such property
and its book value (as determined for purposes of the maintenance of Capital Accounts in accordance with this Agreement and Treasury Regulation Section 1.704-1(b)(2)(iv)(g)). For purposes of this Agreement, the term “Code”
means the Internal Revenue Code of 1986, as heretofore and hereafter amended form time to time (and/or any corresponding provision of any superseding revenue laws). 
 ARTICLE V 
 DISTRIBUTION OF CASH FLOW 

5.01.   Distribution of Net Cash Prior to Removal of JV Member.   Prior to any removal
of the JV Member pursuant to Sections 2.06(b)(i) or (ii) of this Agreement), Net Cash shall be determined and distributed quarterly (or at such other times as are determined in the reasonable discretion of the Managing Member and
Co-Managing Member, taking into account the reasonable business needs of the Company) in the following order of priority: 
 (a)      First, 100% to KBS and JV Member, pari passu in proportion to their Percentage Interests (“Pari Passu”), until KBS has received an IRR Return of 13%;

 (b)      Second, (i) 80% to KBS and JV Member, Pari Passu, (ii) 10% to
GECC in payment of the Assigned Distributions (defined below), and (iii) 10% to JV Member, until KBS has received an IRR Return of 20%; and 
 (c)      Third, (i) 70% to KBS and JV Member, Pari Passu, (ii) 15% to GECC in payment of the Assigned Distributions (defined below), and (iii) 15% to JV Member.

 Reference is made to that Assignment of Limited Liability Company Distributions between JV Member, as Assignor, and GECC, as
Assignee (the “Assignment of Distributions”), in which JV Member, in consideration for the consent by GECC to the acquisition of the Properties by the Company, has agreed that GECC will receive a portion of the distributions from
the Company that would have otherwise been paid to directly JV Member under this Agreement (the “Assigned Distributions”). The Assigned Distributions are set forth in Sections 5.01(b)(ii) and (c)(ii) above and in Sections
5.02(b)(ii) and (c)(ii) below are subject to Section 5.03 below and the Assignment of Distributions. 
 5.02.   Distribution of Net Cash After Removal of the JV Member.   After any removal of JV Member pursuant to Sections 2.06(b)(i) or (ii) of this
Agreement, Net Cash shall be determined and distributed quarterly (or at such other times as are determined in the reasonable discretion of the Members, taking into account the reasonable business needs of the Company) to the Members in the
following order of priority: 
 (a)      First, 100% to KBS and JV Member, Pari Passu,
until KBS has received an IRR Return of 13%; 

  
 21 

 (b)        Second, (i) 90% to KBS
and JV Member, Pari Passu, and (ii) 10% to GECC in payment of the Assigned Distributions until KBS has received an IRR Return of 20%; and 
 (c)        Third, (i) 85% to KBS and JV Member, Pari Passu, and (ii) 15% to GECC in payment of the Assigned Distributions. 

5.03.     Limitation on Distributions.   Notwithstanding any other provision
contained in this Agreement, the Company shall not make any distributions of Net Cash (or other proceeds) to any Member if such distribution would violate the Act or other applicable law. 

5.04.     In-Kind Distribution.   Subject to Section 10.06, assets of
the Company (other than cash) shall not be distributed in kind to the Members without approval of the Co-Managing Member. In the event of any distribution of real property in kind, each Member hereby waives any right of partition in respect thereof.

 5.05.      Tax Distributions.   Unless this provision is waived by
KBS, to the fullest extent possible but consistent with the distribution provisions of this Article 5, the Managing Member shall use best efforts to cause the Company to distribute KBS’s portion of the Company’s cash to KBS by the end of
each fiscal year no less than 100% of the taxable income (including any net capital gain) allocated, directly or indirectly, to KBS for federal income tax purposes for each such fiscal year so that KBS or any owner of KBS that is a REIT may satisfy
the requirements of Section 857(a)(1) of the Code for its taxable year with respect to the income and gain allocated to that owner from KBS for the taxable year, and otherwise distribute 100% of its taxable income and net capital gain.

 5.06.     Credit to Assigned Distributions.   Notwithstanding anything
to the contrary contained in Section 5.01 or Section 5.02 of this Agreement, as and to the extent that GECC shall charge and receive any Make Whole Breakage Amount, under and as defined in that Loan Agreement between GECC and
the Company, evidencing and governing the Loan, for any prepayment of the Loan (the “Make Whole Breakage Amount”), an amount equal to the lesser of (a) the Make Whole Breakage Amount, and (b) $500,000 shall be credited to
and reduce the amount of the Assigned Distributions payable to GECC under this Agreement, and any amount so credited shall be distributed to KBS and JV Member Pari Passu. 
 ARTICLE VI 
 RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS

 6.01.     Limitations on Transfer.   Except as set forth in
Section 6.02 below, no Member shall be entitled to sell, exchange, assign, transfer or otherwise dispose of, pledge, hypothecate, encumber or otherwise grant a security interest in, directly or indirectly (collectively, a
“Transfer”), all or any part of such Member’s Interest, without the prior written consent of the non-transferring Members (which consent may be withheld in such Member’s sole and absolute discretion). Any attempted
Transfer in violation of the restrictions set forth in this Article VI shall be null and void ab initio and of no force or effect. Each Member shall indemnify, defend and hold the other Members and the Company harmless from and against any
and all costs, expenses and losses associated with any Transfer (including any Permitted 

  
 22 

 
Transfer), including without limitation any transfer taxes and any increase in real estate or other taxes incurred as a result of such transfer. 

6.02.    Permitted Transfers.   Any Member and/or any direct or indirect
constituent owner of any Member may transfer all or any portion of such Member’s Interest and/or such constituent owner’s direct or indirect ownership interest in such Member as follows (each a “Permitted
Transfer”) to a person or entity described below (a “Permitted Transferee”) without complying with the provisions of Section 6.01: 

(a)       Transfer Between Members.   Notwithstanding anything
stated to the contrary in this Agreement, any Member may sell, assign or otherwise transfer all or any part of its Interest to any other Member on such terms as are agreed to by both Members. 

(b)       KBS Indirect Transfers.   Notwithstanding anything stated to
the contrary in this Article VI or elsewhere in the Agreement, any Transfer of equity interests or other interests in KBS, or in any of the direct or indirect owners of KBS (including, without limitation, KBS SOR Acquisition VIII, LLC, KBS
SOR Properties, LLC, KBS Strategic Opportunity Limited Partnership or KBS Strategic Opportunity REIT, Inc.) shall not be prohibited (and shall be expressly permitted) provided that KBS Strategic Opportunity REIT, Inc. continues to own, either
directly or indirectly, at least fifty-one percent (51%) of the ownership interests in KBS. 

(c)       KBS Transfers.   KBS shall have the right to Transfer all of
its Interest (a) to a KBS Affiliate (defined below) without Manager Member’s approval, and (b) subject to any approval required under any financing secured by liens encumbering the Projects, to another entity that is not a KBS
Affiliate with Managing Member’s approval, which approval may be withheld in Managing Member’s reasonable discretion. Managing Member’s failure to respond to KBS’s request for the approval of a Transfer within five
(5) business days following delivery of KBS’s written request for such consent shall be deemed to constitute Managing Member’s consent. A “KBS Affiliate” is any entity in which at least fifty-one percent (51%) of
the ownership interests is owned, directly or indirectly, through one or more intermediaries, by KBS Strategic Opportunity REIT, Inc. 
 (d)       JV Member Transfers.   Any direct or indirect constituent owner of JV Member may transfer all or any portion of such constituent
owner’s direct or indirect ownership interest in JV Member so long as Mark Jordan continues to serve as the Manager of JV Member. 
 In the event of any Permitted Transfer, any such Permitted Transferee shall receive and hold such Interest, such ownership interest or portion thereof subject to the terms of this Agreement and to the
obligations hereunder of the transferor and there shall be no further transfer of such Interest, such ownership interest or portion thereof except to a person or entity to whom such Permitted Transferee could have transferred such Interest, such
ownership interest or portion thereof in accordance with this Section 6.02 had such Permitted Transferee originally been a Member or a constituent owner of a Member as of the date hereof or otherwise in accordance with the terms of this
Agreement. Notwithstanding any provision of this Agreement to the contrary, unless approved by all of the Members, no Member and/or any direct or indirect constituent owner of any Member shall transfer all or any portion of such Member’s
Interest or 

  
 23 

 
permit the transfer of any direct or indirect ownership interest in such Member if such transfer would be a default under the Loan or any Refinance. 

6.03.     Admission of Substituted Members.   If any Member transfers such
Member’s Interest to a transferee in accordance with Sections 6.01 or 6.02, then such transferee shall only be entitled to be admitted into the Company as a substituted Member if (i) the Members approve such admission in
writing and this Agreement is amended to reflect such admission; (ii) the non-transferring Member approves the form and content of the instrument of transfer; (iii) the transferor and transferee named therein execute and acknowledge such
other instruments as the non-transferring Member may deem reasonably necessary to effectuate such admission; (iv) the transferee in writing accepts and adopts all of the terms and conditions of this Agreement, as the same may have been amended;
(v) the transferor pays, as the non-transferring Member may reasonably determine, all reasonable expenses incurred in connection with such admission, including, without limitation, legal fees and costs; and (vi) to the extent required the
lender under the Loan or any Refinance has consented to such transfer. To the maximum extent permitted by applicable law, any transferee of an Interest who does not become a substituted Member shall have no right to require any information or
account of the Company’s transactions, to inspect the Company books, or to vote on any of the matters as to which a Member would be entitled to vote under this Agreement. Any such transferee shall only be entitled to share in such Net Profits
and Net Losses, to receive such distributions, and to receive such allocations of income, gain, loss, deduction or credit or similar items to which the transferor was entitled, to the extent transferred. A Member that transfers such Member’s
Interest pursuant to Section 6.02 shall not cease to be a Member of the Company until the admission of the transferee as a substituted Member in accordance with this Agreement and, except as provided in the preceding sentence, shall
continue to be entitled to exercise, and shall continue to be subject to, all of the other rights, duties and obligations of such Member under this Agreement. 
 6.04.     Election; Allocations Between Transferor and Transferee.   Upon the transfer of the Interest of any Member or the distribution of any property of the Company
to a Member, the Company shall file, in the reasonable discretion of the Members, an election in accordance with applicable Treasury Regulations, to cause the basis of the Company property to be adjusted for federal income tax purposes as provided
by Sections 734 and 743 of the Code. Upon the transfer of all or any part of the Interest of a Member as hereinabove provided, Net Profits and Net Losses shall be allocated between the transferor and transferee on the basis of a computation method
that is in conformity with the methods prescribed by Section 706 of the Code and Treasury Regulation Section 1.706-1(c)(2) and approved by the Members affected by the method. 

6.05.     Waiver of Withdrawal and Purchase Rights.   In accordance with the Act,
each Member acknowledges and agrees that such Member may not voluntarily withdraw, resign or retire from the Company without the prior written consent of each other Member, which consent may be withheld in each such other Member’s sole and
absolute discretion. Each Member further acknowledges and agrees that such Member shall not be entitled to receive the fair market value of such Member’s Interest in the Company pursuant to the Act. 

ARTICLE VII 

KBS’S RIGHT TO CAUSE SALE OF THE PROJECTS 

  
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 7.01.     KBS’s Right to Sell the Projects.

 (a)        At any time after the second anniversary of the date
hereof, Co-Managing Member shall have the continuing right to solicit offers from third parties to sell any or all of the Projects in one or more transactions; provided that prior to soliciting any such offers the Co-Managing Member shall provide
written notice to JV Member (a “Sale Notice”) of its intent to solicit offers for any or all of the Projects. Each Sale Notice shall set forth the proposed sales price (the “Proposed Project
Value”) of the applicable Project(s) that Co-Managing Member desires to sell (each a “Proposed Sale Project”). For thirty (30) days following receipt of a Sale Notice, JV Member may elect to
buy the Proposed Sale Project(s) described in the applicable Sale Notice from the Company (a “Purchase Election”). If a Purchase Election is timely made, the closing of the purchase and sale of the applicable
Proposed Sale Project(s) shall take place on a date agreed upon by KBS and JV Member, which date may not be later than sixty (60) days following the date of the applicable Sale Notice (a “Purchase Closing
Date”). To be effective, the Purchase Election must be accompanied by (a) a non refundable (but applicable to the purchase price) cash deposit (the “Deposit”) made to KBS equal to five
percent (5%) of the Proposed Project Value, and (b) a draft sales agreement (a “Purchase Agreement”) to be executed by KBS and the JV Member containing such terms to which such parties may agree that are
consistent with the provisions of this Section 7.01 and that provides for the transfer of the applicable Proposed Sale Project(s) free and clear of the Loan or any Refinance applicable to such Proposed Sale Project(s). KBS and JV Member
shall use their good faith diligent efforts to execute the Purchase Agreement within ten (10) business days thereafter. Notwithstanding anything stated to the contrary herein, if the parties are unable to agree upon the Purchase Agreement after
good faith and diligent efforts to do so or the JV Member fails to close the purchase of the applicable Proposed Sale Project(s) on or before the applicable Purchase Closing Date, KBS shall have the right to terminate the Purchase Agreement (if
executed) and retain the Deposit as liquidated damages (whether or not the Purchase Agreement is executed), and the Purchase Agreement shall so provide, and thereafter, KBS shall have the right to cause the Company to sell the applicable Proposed
Sale Project(s) pursuant to this Section 7.01. 
 (b)       If a Purchase
Election is not timely made, Co-Managing Member shall have the right to retain brokers on behalf of the Company and to advertise the applicable Proposed Sale Project(s) for sale. Co-Managing Member may cause the Company to sell such Proposed Sale
Project(s) on an “as is, where is” basis so long as (i) the price is at least equal to 90% of the Proposed Project Value, or (ii) JV Member receives no less than it would have received under this Agreement upon a liquidation of
the Company had the Proposed Sale Project(s) been sold for 90% of the Proposed Project Value. Co-Managing Member shall keep Manager Member informed of the progress of the sale of the Proposed Sale Project(s). Managing Member shall cooperate with
Co-Managing Member in connection with the sale of the Proposed Sale Project(s) and shall execute such documents (in its capacity as a Member in the Company, and/or as the Managing Member, as applicable) as may be reasonably required to effectuate
the sale of the Proposed Sale Project(s); provided that the Members shall not be exposed to any personal liability. If the Proposed Sale Project(s) is not subject to a purchase and sale contract within 9 months after the date of the applicable Sale
Notice, the Co-Managing Member may not cause such Proposed Sale Project(s) to be sold unless another Sale Notice is provided to JV Member pursuant to this Section 7.01. JV Member hereby irrevocably constitutes and appoints Co-Managing
Member as its agent and attorney-in-fact, coupled with an 

  
 25 

 
interest, for the purpose of executing and delivering any documents required to be executed and delivered by Managing Member (in its capacity as a member in the Company and, so long as it is the
Managing Member, as the Managing Member of the Company) pursuant to this Section 7.01 in the event Managing Member fails or refuses to execute the same upon the request of Co-Managing Member. 

ARTICLE VIII 
 DISSOLUTION AND WINDING UP OF THE COMPANY 

8.01.   Events Causing Dissolution of the Company.  Upon any Member’s bankruptcy,
retirement, resignation, expulsion or other cessation to serve or the admission of any new member into the Company, the Company shall not dissolve, but the business of the Company shall continue without interruption and without any break in
continuity. The Company shall be dissolved and its affairs wound up upon the first to occur of: (i) the expiration of the term of the Company unless such term has been extended by the Members; (ii) the sale, transfer or other disposition
by the Company of all or substantially all of its assets and the collection by the Company of any and all Net Cash derived therefrom; (iii) the agreement of the Members to dissolve the Company; or (iv) the entry of a decree of judicial
dissolution pursuant to the Act. 
 8.02.   Winding Up of the Company.  Upon
the Liquidation of the Company caused by other than the termination of the Company under Code Section 708(b)(1)(B) (in which latter case the Company shall remain in existence in accordance with the provisions of such Section of the Code), the
Members shall proceed to the winding up of the affairs of the Company. During such winding up process, the Net Profits, Net Losses and Net Cash distributions shall continue to be shared by the Members in accordance with this Agreement. The assets
shall be liquidated as promptly as consistent with obtaining a fair value therefor, and the proceeds therefrom, to the extent available, shall be applied and distributed by the Company on or before the end of the taxable year of such Liquidation or,
if later, within 90 days after such Liquidation, in the following order: (i) first, to creditors of the Company (including Members who are creditors in the order of priority as provided by law including, without limitation, any Members that
have made Member Loans); (ii) second, to the setting up of any reserves which the Members determine, in their reasonable discretion, are necessary for any contingent, conditional or unmatured liabilities or obligations of the Company (which
shall be distributed at such time as is determined in the reasonable discretion of the Members); and (iii) the balance, if any, to the Members in accordance with the distribution schedule of Section 5.01 or Section 5.02,
as then applicable at the time of such Liquidation. Such distribution shall be made by the date specified in Treasury Regulation Section 1.704-1(b)(2)(ii)(b)(2). As used in this Agreement, the term “Liquidation”
means (i) in respect to the Company the earlier of the date upon which the Company is terminated under Code Section 708(b)(1) or the date upon which the Company ceases to be a going concern (even though it may continue in existence for
the purpose of winding up its affairs, paying its debts and distributing any remaining balance to its Members), and (ii) in respect to a Member wherein the Company is not in Liquidation, means the liquidation of a Member’s interest in the
Company under Treasury Regulation Section 1.761-1(d). 
 8.03.   Negative Capital
Account Restoration.  No Member shall have any obligation whatsoever upon the Liquidation of such Member’s Interest, the Liquidation of the Company or in any other event, to contribute all or any portion of any negative balance
standing 

  
 26 

 
in such Member’s Capital Account to the Company, to each other Member or to any other person or entity. 
 ARTICLE IX 
 BOOKS AND RECORDS 

9.01.   Books of Account and Bank Accounts.  The fiscal year and taxable year of the
Company shall be the year ending December 31. Managing Member shall: (i) maintain all of the books and records of the Company on an accrual basis in accordance with sound accounting principles, consistently applied and (ii) provide
operating reports and financial statements to each other Member and GECC not less frequently than once each month summarizing the operating activities of the Company during the immediately preceding calendar month, any material deviations from the
Business Plan or the Annual Budgets during such preceding calendar month, and such other information as is reasonably requested by any Member or GECC, all within 20 days after the end of such preceding calendar month. During normal business hours at
the principal office of the Company, on not less than three (3) business days prior notice, all of the following shall be made available for inspection and copying by all of the Members and GECC at their own expense for any purpose reasonably
related to each such Member’s Interest in the Company or, in the case of GECC, the Assigned Distributions: (i) all books and records relating to the business and financial condition of the Company, (ii) a current list of the name and
last known business, residence or mailing address of each Member, (iii) a copy of this Agreement, the Certificate of Formation and all amendments thereto, together with executed copies of any written powers-of-attorney pursuant to which this
Agreement, the Certificate of Formation and all amendments thereto have been executed, (iv) the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member to the capital of
the Company and which each Member has agreed to contribute in the future, and (v) the date upon which each Member became a Member of the Company. Upon not less than three (3) business days prior notice, Managing Member shall cooperate with
any Member that requests, at such Member’s sole cost and expense, and not more than one time in each calendar year, to conduct an independent audit of the Company. 

9.02.   Tax Returns.  Managing Member shall cause to be prepared and timely filed and
distributed to each Member, at the expense of the Company (and prepared by an accounting firm approved by the Members), all required federal and state Company tax returns, which shall be delivered to KBS by no later than March 31 each year;
provided however, in the event that it is not possible for Managing Member to have such materials by said date using best efforts to meet the deadline, Managing Member shall: (i) notify the other Members by March 15 that such materials
will not be available, (ii) deliver estimated drafts of such information to the other Members by March 31, and (iii) deliver all such information to the other Members by June 30 of said year. Managing Member shall not file any
tax return on behalf of the Company without the prior written approval of KBS; provided that if the Co-Managing Member shall not respond to a written request to approve a tax return within 15 days the Co-Managing Member shall be deemed to have
approved such tax return. Managing Member is hereby designated as the “tax matters partner” of the Company as determined in accordance with the provisions of Section 6231(a)(7) of the Code and the Treasury Regulations promulgated
thereunder. 

  
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 The tax matters partner shall cause each other Member to be a “notice
partner” within the meaning of Code Section 6223. The tax matters partner shall inform each other Member of all significant matters that comes to its attention in its capacity as tax matters partner by giving notice thereof within five
days after becoming aware thereof and, within that time, shall forward to each other Member copies of all material written communications it may receive in that capacity. The tax matters partner shall not enter into any settlement or other agreement
with any tax authority that purports to bind any Member other than the tax matters partner without the other Member’s prior written consent. 
 ARTICLE X 
 MISCELLANEOUS 

10.01.   Notices.  All notices or other communications required or permitted hereunder shall
be in writing, and shall be delivered or sent, as the case may be, by any of the following methods: (i) personal delivery, (ii) overnight commercial carrier, (iii) registered or certified mail, postage prepaid, return receipt
requested, or (iv) telegraph, telex, telecopy, or cable. Any such notice or other communication shall be deemed received and effective upon the date of acceptance or rejection of delivery. Any notice or other communication sent by cable, telex,
or telecopy must be confirmed within 48 hours by letter mailed or delivered in accordance with the foregoing. Any reference herein to the date of receipt, delivery, or giving, or effective date, as the case may be, of any notice or communication
shall refer to the date such communication becomes effective under the terms of this Section 10.01. Any such notice or other communication so delivered shall be addressed to the party to be served at the address for such party set forth
on Exhibit A attached hereto. Such addresses may be changed by giving written notice to the other parties in the manner set forth in this Section 10.01. Rejection or other refusal to accept or the inability to deliver because of
changed address of which no notice was given shall be deemed to constitute receipt of notice or other communication sent. 
 10.02.   Construction of Agreement.  This Agreement contains the entire understanding between the parties hereto and supersedes any prior or contemporaneous understanding,
correspondence, negotiations or agreements between them respecting the within subject matter. No alteration, modification or interpretation hereof shall be binding unless in writing signed by all of the Members. The Article and Section headings of
this Agreement are used herein for reference purposes only and shall not govern, limit, or be used in construing this Agreement or any provision hereof. Any Exhibit attached hereto is incorporated herein by this reference and expressly made a part
of this Agreement for all purposes. Time is of the essence of this Agreement. The provisions of this Agreement shall be construed and enforced in accordance with the laws of the State of Delaware, and all rights, duties, obligations and remedies
shall be governed by the Act without regard to principles of conflict of laws. If any arbitration is brought by any Member against any other Member that arises out of this Agreement, then the prevailing Member in such arbitration shall be entitled
to recover reasonable attorneys’ fees and costs. Subject to the restrictions set forth in Articles VI and VII, and Section 10.04, this Agreement shall inure to the benefit of and shall bind the parties hereto and their
respective personal representatives, successors, and assigns. Any agreement to pay any amount and any assumption of liability herein contained, express or implied, shall be only for the benefit of the Members and their respective successors and
assigns, and such agreements and assumptions shall not inure to the benefit of the obligees of any indebtedness or any other party, 

  
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whomsoever, deemed to be a third-party beneficiary of this Agreement. Each of the Exhibits attached hereto is incorporated herein by this reference and expressly made a part of this Agreement for
all purposes. References to any Exhibit made in this Agreement shall be deemed to include this reference and incorporation. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original Agreement, but all of
which shall constitute a single Agreement, binding on the parties hereto. Where the context so requires, the use of the neuter gender shall include the masculine and feminine genders, the masculine gender shall include the feminine and neuter
genders, and the singular number shall include the plural and vise versa. The signature of any party hereto to any counterpart hereof shall be deemed a signature to, and may be appended to, any other counterpart. Every provision of this Agreement is
intended to be severable. Each Member acknowledges that (i) each Member is of equal bargaining strength; and (ii) each Member has actively participated in the drafting, preparation and negotiation of this Agreement. 

10.03.  Partnership Intended Solely for Tax Purposes The Members have formed the Company as a Delaware
limited liability company under the Act, and do not intend to form a corporation or a general or limited partnership under Delaware or any other state law. The Members do not intend to be shareholders and/or partners to one another or to any third
party. The Members intend the Company to be classified and treated as a partnership solely for federal and state income taxation purposes. Each Member agrees to act consistently with the foregoing provisions of this Section 10.03 for all
purposes, including, without limitation, for purposes of reporting the transactions contemplated herein to the Internal Revenue Service and all state and local taxing authorities. 

10.04.  Investment Representations.   Each Member agrees as follows with respect to
investment representations: 
 (a)       Each Member understands:

 (i)       That the Interests in the Company evidenced by
this Agreement have not been registered under the Securities Act of 1933, 15 U.S.C. § 15b et seq., or any state securities laws (collectively, the “Securities Acts”) because the Company is issuing Interests in the
Company in reliance upon the exemptions from the registration requirements of the Securities Acts providing for issuance of securities not involving a public offering; 

(ii)       That the Company has relied upon the representation made
by each Member that such Member’s Interest in the Company is to be held by such Member for investment; and 
 (iii)       That exemption from registration under the Securities Acts would not be available if any Interest in the Company was acquired by a Member with a view to
distribution. Each Member agrees that the Company is under no obligation to register the Interests in the Company or to assist the Members in complying with any exemption from registration under the Securities Acts if the Member should at a later
date wish to dispose of such Member’s Interest in the Company. 

  
 29 

 (b)      Each Member hereby represents to the
Company that such Member is acquiring such Member’s Interest in the Company for such Member’s own account, for investment and not with a view to the resale or distribution of such Interest (except for any transfers made in accordance with
the provisions of Article VI). 
 (c)      Each Member recognizes that no
public market exists with respect to the Interests and no representation has been made that such a public market will exist at a future date. 
 (d)      Each Member hereby represents that such Member has not received any advertisement or general solicitation with respect to the sale of the Interests. 

(e)      Each Member acknowledges that such Member has a preexisting personal or business
relationship with the Company or its officers or principal Interest holders, or, by reason of such Member’s business or financial experience or the business or financial experience of such Member’s financial advisors (who are not
affiliated with the Company), could be reasonably assumed to have the capacity to protect such Member’s own interest in connection with the purchase of such Member’s Interest. Each Member further acknowledges that such Member is familiar
with the financial condition and prospects of the Company’s business, and has discussed with each other Member the current activities of the Company. Each Member believes that the Interests are securities of the kind such Member wishes to
purchase and hold for investment, and that the nature and amount of the Interests to be acquired by such Member is consistent with such Member’s investment program. 

(f)      Before acquiring any Interest in the Company, each Member has investigated the
Company and its business and the Company has made available to each Member all information necessary for the Member to make an informed decision to acquire an Interest in the Company. Each Member considers itself to be a person possessing experience
and sophistication as an investor adequate for the evaluation of the merits and risks of the Member’s investment in the Company. 
 (g)      Each Member understands the meaning and consequences of the representations, warranties and covenants made by such Member set forth herein and that the Company has
relied upon such representations, warranties and covenants. Each Member hereby indemnifies, defends, protects and holds wholly free and harmless the Company and each other Member from and against any and all losses, damages, expenses or liabilities
arising out of the breach and/or inaccuracy of any such representation, warranty and/or covenant. All representations, warranties and covenants contained herein and the indemnification contained in this Section 10.04(g) shall survive the
execution of this Agreement, the formation of the Company, and the liquidation of the Company. 

10.05.   Waiver of Conflict of Interest.  The Company is not represented by separate
counsel; provided, however, in connection with the formation of the Company and the drafting and negotiation of this Agreement, JV Member and the Company (and not KBS) have been represented by Glast, Phillips & Murray, P.C., Attention, Ira
F. Levy, and KBS (and not JV Member or the Company) has been represented by Greenberg Traurig, LLP, Attention, Scott Morehouse. To the extent that the foregoing representation constitutes a conflict of interest, the

  
 30 

 
Company and each Member hereby expressly waive any such conflict of interest. Upon creation of the Company, the Company shall only be represented by counsel in accordance with
Section 2.02(i) above. 
 10.06.  Section 1031 Exchange.   Subject
to the provisions of this Section 10.06, each Member agrees to take any and all actions reasonably necessary to accommodate each other Member in effectuating a like-kind exchange pursuant to Section 1031 of the Code prior to the
negotiation of or in connection with any proposed sale of all or any portion of the Project and any purchase and sale of a Member’s Interest pursuant to Article VII or otherwise including, without limitation, allowing any Member to cause
the Company to make an in-kind distribution of a portion of the Project to such Member (and/or any Affiliate thereof). In furtherance of the foregoing, each Member hereby agrees to execute any and all deeds, documents and/or other instruments that
may be required to distribute and vest an undivided interest in the Project in such Member and/or otherwise necessary to effect such Code Section 1031 exchange, provided that (i) the distribution and exchange of such portion of the Project
does not reduce the cash proceeds that otherwise would be distributed to any non-exchanging Member from the sale of the Project; (ii) the distribution and exchange does not materially delay or otherwise adversely affect the closing of any such
sale of the Project; (iii) the exchanging Member pays any and all additional costs, fees, and/or expenses, including, without limitation, attorneys’ fees and costs incurred as a result of the proposed distribution and exchange; and
(iv) there is no additional loss, cost or damage incurred (or which may be incurred) by the Company or any non-exchanging Member as a direct consequence of the distribution and exchange. In addition, nothing contained herein shall obligate any
Member to offer to any other Member any interest in any particular Code Section 1031 exchange structured by the exchanging Member. 
 10.07.  Arbitration.   Except as otherwise provided in this Agreement (including, without limitation, the provisions stating that the disapproval by Co-Managing Member of a
matter subject to Co-Managing Member’s consent, approval or vote do not create a dispute or controversy subject to this Section 10.07), any controversy or dispute arising out of this Agreement, the interpretation of any of the
provisions hereof, (including the scope of this agreement to arbitrate) or the action or inaction of any Member or Managing Member hereunder that provides that such controversy or dispute shall be submitted to arbitration pursuant to this
Section 10.07 shall be submitted to arbitration in Orange County, California before a retired California Superior Court or Court of Appeal judge, experienced in presiding over claims substantially similar to those pled in the notice of
arbitration, selected by JAMS, Inc. (“JAMS”) under the commercial arbitration rules then applicable to the JAMS. Such arbitrator shall be required to apply the substantive law of the State of Delaware or Federal substantive law if
germane in such proceeding. Notice of the demand for arbitration shall be filed with the other party and the JAMS. Demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter has arisen, but in no event
shall it be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable contractual or other statute of limitations. The parties hereby further
agree that within forty five (45) days of service of the notice of arbitration, the parties shall mutually exchange all documents which they reasonably believe are relevant to any claim or defense in the action, regardless of whether such
documents are helpful or hurtful to the producing parties case. No document requests, interrogatories or requests for admission will be permitted. Each party shall be entitled to take up to ten (10) hours of depositions, but not more

  
 31 

 
than ten (10) hours of depositions. Any award or decision obtained from any such arbitration proceeding shall be final and binding on the parties, and judgment upon any award thus obtained
may be entered in any court having jurisdiction thereof. The arbitration award shall be in writing, but without a supporting opinion. No action at law or in equity based upon any claim arising out of or related to this Agreement shall be instituted
in any court by any Member or Managing Member except (a) an action to compel arbitration pursuant to this Section 10.7 or (b) an action to enforce an award obtained in an arbitration proceeding in accordance with this
Section 10.7. 
 10.08.   Outside Activities.   No Member shall not have
any obligations (fiduciary or otherwise) with respect to the Company or the other Members insofar as making other investment opportunities available to the Company or to the other Members. The Members may, notwithstanding the existence of this
Agreement, engage in whatever activities they may choose, whether the same are competitive with the Company or otherwise, without having or incurring any obligation to offer any interest in such activities to the Company or to the other Members.
Neither this Agreement nor any activities undertaken pursuant hereto shall prevent a Member from engaging in such activities. 
 10.09.   Limitation on Amendments.   Notwithstanding anything to the contrary contained herein, including without limitation, Section 10.02 above, any amendment or
modification to Section 5.01 or Section 5.02 of this Agreement or any other provision of this Agreement that would reduce the amount distributable to GECC as Assigned Distributions pursuant to the Assignment of Distributions,
admit any new Member into the Company other than as a result of a Permitted Transfer pursuant to Section 6.02 above, or allow for the assignment of the interest of JV Member to any other party other than as a result of a Permitted
Transfer pursuant to Section 6.02 above, shall be effective only with the prior written consent of GECC. 
 10.10.   No Third Party Beneficiaries.   Nothing contained in this Agreement is intended or will be deemed to benefit any other party except for GECC under and pursuant to the
Assignment of Distributions, and no such other party will be entitled to require any Member to make any Additional Capital Contributions to the Company, or, except for GECC pursuant to the Assignment of Distributions, to enforce any right which any
Member may have against the Company or any other Member. 
 ARTICLE XI 

REIT PROTECTION 
 11.01.   Certain Definitions.   For the purposes of this Article XI, the following terms shall have the following meanings: 

(a)       “KBS” shall mean KBS as defined in the recitals hereto and KBS
Strategic Opportunity REIT, Inc., a Maryland corporation that has elected to be taxable for federal income tax purposes as a real estate investment trust under the Code (herein, a “REIT”); and/or any subsidiary or affiliate of KBS.

 (b)       “REIT Prohibited Transactions” shall mean any
action specified in Section 11.02. 

  
 32 

 11.02.  Prohibited Transactions.  
Notwithstanding anything to the contrary contained in this Agreement, during the time KBS is a Member of the Company, neither the Company, nor any Property Owner, the Managing Member or any other Member of the Company, shall take any of the
following actions: 
 (a)       Entering into any lease or permitting any
sublease that provides for rent based in whole or in part on the income or profits of any person, excluding for this purpose a lease that provides for rent based in whole or in part on a fixed percentage or percentages of gross receipts or gross
sales of any person without reduction for any sublessor costs; 

(b)      Leasing personal property, excluding for this purpose a lease of personal
property that is entered into in connection with a lease of real property where the rent attributable to the personal property is less than 15% of the total rent provided for under the lease, determined as set forth in Section 856(d)(1) of the
Code; 
 (c)       Acquiring or holding debt unless (a) the amount of
interest income received or accrued by the Company under such loan does not, directly or indirectly, depend in whole or in part on the income or profits of any person, and (b) the debt is fully secured by mortgages on real property or on
interests in real property; 
 (d)      Acquiring or holding more than 10% of the
outstanding voting securities of any one issuer other than a corporation that has properly elected to be a “taxable REIT subsidiary” of KBS; 
 (e)       Acquiring or holding more than 10% of the total value of the outstanding securities (debt or equity) of any one issuer; 

(f)       Making an election or taking any action that would cause the Company to be
treated as (i) an entity that is not classified as a partnership for federal income tax purposes or (ii) a publicly traded partnership as defined in Section 7704 of the Code; 

(g)      Entering into any agreement where the Company receives amounts, directly or
indirectly, for rendering services to the tenants of the properties that are owned, directly or indirectly, by the Company other than (i) amounts received for services that are customarily furnished or rendered in connection with the rental of
real property of a similar class in the geographic areas in which the properties are located where such services are either provided by (a) an Independent Contractor (as defined in Section 856(d)(3) of the Code) who is adequately
compensated for such services and from which the Company does not, directly or indirectly, derive revenue or (b) a taxable REIT subsidiary of KBS (as defined in Section 856(1) of the Code) who is adequately compensated for such services or
(ii) amounts received for services that are customarily furnished or rendered in connection with the rental of space for occupancy only (as opposed to being rendered primarily for the convenience of the Company’s tenants); 

(h)      Holding cash of the Company for operations or distribution in any manner other
than a traditional bank checking or savings account; or 

  
 33 

   (i)      Entering into any agreement
where income or gain, as applicable, received or accrued by the Company under such agreement, directly or indirectly, (a) does not qualify as “rents from real property” within the meaning of Section 856 of the Code, (b) does
not qualify as “interest on obligations secured by mortgages on real property or on interests in real property” within the meaning of Section 856 of the Code or (c) constitutes income from a sale of “inventory” or
“stock in trade” of the Company within the meaning of Section 1221(a)(l) of the Code other than a sale that would qualify under the Section 857(b)(6)(C) “safe harbor” with respect to KBS. 

ARTICLE XII 

SINGLE PURPOSE ENTITY 
 So long as the Loan remains outstanding the Loan Documents executed in connection with the Loan requires and the Company hereby represents and covenants that the Company: 

(i)        was and will be organized solely for the purposes of owning the
Properties and the membership interests of the Property Owners; 

(ii)       has not engaged and will not engage in any business unrelated to the
ownership of the Properties and membership interests of the Property Owners; 

(iii)      has not had and will not have any assets other than those related to the
Properties and the membership interests of the Property Owners; 
 (iv)      has
not engaged, sought or consented to and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale (except as expressly permitted by this Agreement), transfer of partnership interest (except as
expressly permitted by this Agreement), or the like, or amendment of this Agreement or its Certificate of Organization; 
 (v)      has not, and without the unanimous consent of all of its Members, will not, with respect to itself or to any other entity (the “Entity”) in which it has a
direct or indirect legal or beneficial ownership interest (a) file bankruptcy, insolvency or reorganization petition or otherwise institute insolvency proceedings or otherwise seek any relief under any laws relating to the relief from debts or
the protection of debtors generally, (b) seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for such Entity or for all or any portion of such Entity’s properties
(c) make any assignment for the benefit of such Entity’s creditors or (d) take any action with the intention of rendering the Company insolvent; 
 (vi)     has remained and will remain solvent and has maintained and will maintain adequate capital in light of its contemplated business operations; provided that this provision
shall not require any Member to make an Additional Capital Contribution to the Company; 

(vii)    has not failed and will not fail to correct any known misunderstanding regarding the
separate identity of such Entity; 
 (viii)    has maintained and will maintain its
accounts, books and records separate from any Person and will file its own tax returns; 

  
 34 

 (ix)      has maintained and will maintain its
books, records, resolutions and agreements as official records; 
 (x)       has
not commingled and will not commingle its funds or assets with those of any other Person; 

(xi)      has held and will hold its assets in its own name; 

(xii)     has conducted and will conduct its business in its name; 

(xiii)    has maintained and will maintain its financial statements, accounts records and other entity
documents separate from any other Person; 
 (xiv)    has paid and will pay its own liabilities,
including the salaries of its own employees, out of its own funds and assets; 
 (xv)
    has observed and will observe all corporate formalities; 
 (xvi)    has
allocated and will allocate fairly and reasonably shared expenses, including shared office space, and uses separate stationery, invoices and checks; 
 (xvii)   except in connection with the Loan, has not pledged and will not pledge its assets for the benefit of any other individual, corporation, limited liability company, partnership or
similar entity (collectively as “Person”); 
 (xviii)  has held itself out and identified itself
and will hold itself out and identify itself as a separate and distinct entity under its own name and not as a division or part of any other Person; 
 (xix)     has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets for those of
any other Person; and 
 (xx)      has not made and will not make loans to any Person.

  
 35 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective as of the day and year first above written. 
  

			
	 “JV MEMBER”

	
	 JP-RICHARDSON, LLC
 a Delaware limited liability company

	
	 By:        /s/ Mark D.
Jordan                  

	 Name:
	 	     Mark D. Jordan

	 Title:
	 	     Manager

  
 36 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day
and year first above written. 
  

															
		  	 “KBS”
	  	
			
		  	KBS SOR RICHARDSON PORTFOLIO JV, LLC,
 a Delaware limited
liability company
	  	
				
		  	By:	  	KBS SOR ACQUISITION VIII, LLC,
 a Delaware limited liability
company,
 its sole member
	  	
					
		  		  	 By:
	  	KBS SOR PROPERTIES, LLC,	  	
		  		  		  	a Delaware limited liability company,
 its sole
member
	  	
						
		  		  		  	By:	    	KBS STRATEGIC OPPORTUNITY LIMITED PARTNERSHIP, a
Delaware limited partnership,
 its sole member
	  	
							
		  		  		  		    	By:	    	KBS STRATEGIC OPPORTUNITY REIT, INC., a Maryland corporation, its sole general partner
	  	
							
		  		  		  		    		    	By:/s/ David E. Snyder              
	  	
		  		  		  		    		    		  	          David E. Snyder
           Chief Financial Officer
	  	

			
	INDEX
	Term (and where applicable, their plural
terms)	  	Section Reference
	 Additional Capital Contribution §3.02
Act
	  	 §1.01

	 Affiliate
	  	 §2.01(d)

	 Affiliate Agreement
	  	 §2.01(d)

	 Agreement
	  	 Preamble

	 Annual Budget
	  	 §2.10(b)

	 Assigned Distributions
	  	 §5.01(c)

	 Assignment of
Distributions
	  	 §501(c)

	 Business Plan
	  	 §2.10(a)

	 Capital Account
	  	 §2.12(a)

	 Code
	  	 §4.03

	 Co-Managing Member
	  	 Preamble

	 Company
	  	 §1.01

	 Deemed Book Value
	  	 §4.01

	 Defaulting Member
	  	 §3.03

	 De Minimis Expenditures
	  	 §2.01(c)

	 GECC
	  	 §5.01(c)

	 Improvements
	  	 §1.03

	 Interest
	  	 §3.04

	 IRR Return
	  	 §3.05

	 JAMS
	  	 §10.07

	 Just Cause Event
	  	 §2.06(b)

	 JV Member
	  	 Preamble

	 KBS
	  	 Preamble

	 KBS Affiliate
	  	 §6.02(c)

	 Leasing Agent
	  	 §2.11(b)

	 Leasing Agreement
	  	 §2.11(b)

	 Leasing Guidelines
	  	 §2.02(o)

	 Liquidation
	  	 §8.02

	 Loan
	  	 §2.01(b)

	 Major Decision
	  	 §2.02

  
 38 

			
	INDEX
	Term (and where applicable, their plural terms)	  	Section Reference
	 Management Agreement
	  	 §2.11(a)

	 Managing Member
	  	 §2.01(a)

	 Members
	  	 Preamble

	 Member Deposit
	  	 §7.01(a)

	 Member Loan
	  	 §3.04

	 Member Purchase Agreement
	  	 §7.01(a)

	 Net Cash
	  	 §2.02(h)

	 Net Profits and Net Losses
	  	 §3.04

	 Non-Defaulting Member
	  	 §3.03

	 Pari Passu
	  	 §5.01

	 Percentage Interest
	  	 §3.04

	 Permitted Transfer
	  	 §6.02

	 Permitted Transferee
	  	 §6.02

	 Project
	  	 §1.03

	 Property
	  	 §1.03

	 Property Manager
	  	 §2.11(a)

	 Proposed Project Value
	  	 §7.01(a)

	 Purchase Closing Date
	  	 §7.01(a)

	 Purchase Election
	  	 §7.01(a)

	 Refinance
	  	 §2.01(b)

	 Removal Notice
	  	 §2.06(b)

	 Renovation Budget
	  	 §2.10(b)

	 Renovations
	  	 §2.10(b)

	 Sales Notice
	  	 §7.02(a)

	 Securities Acts
	  	 §10.04(a)

	 Transfer
	  	 §6.01

	 Treasury Regulation
	  	 §2.12

	 Update Date
	  	 §2.10(b)

  
 39 

 EXHIBIT A 

NAMES, ADDRESSES, PERCENTAGE INTERESTS 
 AND CAPITAL CONTRIBUTIONS OF THE MEMBERS 
  

					
	Names and Addresses of the Members:	  	 Percentage Interest
	  	 Capital Contribution

			
	 KBS SOR Richardson Portfolio JV, LLC
 620 Newport Center Drive, Suite 1300
 Newport Beach, CA 92660
	  	90%	  	$14,693,410.46
			
	 JP-Richardson, LLC
 14801 Quorum Drive, Suite 200
 Dallas, Texas 75254
	  	10%	  	$1,632,601.16

 EXHIBIT B 

LEGAL DESCRIPTION OF THE PROPERTIES 
  

					
	
Properties

 
	 	 	  	Property
Owners
	 Improved
Parcels
  
	 	 	  	 
	 2425 N. Central
Expressway
 Richardson, Texas 75080
  
	 	 	  	JP-Palisades I, LLC
	 2435 N. Central
Expressway
 Richardson, Texas 75080
  
	 	 	  	JP-Palisades II, LLC
	 2150 Lakeside
Boulevard
 Richardson, Texas 75082
  
	 	 	  	JP-Greenway I, LLC
	 2400 Lakeside
Boulevard
 Richardson, Texas 75082
  
	 	 	  	JP-Greenway II, LLC
	 2100 Lakeside
Boulevard
 Richardson, Texas 75082
  
	 	 	  	JP-Greenway III, LLC
	 Unimproved
Parcels
  
	 	 	  	 
	 Lot 2, Block A, Second Replat, Palisades Central in the City of Richardson, Dallas and Collin County,
Texas.
	 	 	  	JP-Palisades III, LLC
	 	 	 
	 Lots 4B, 5A, 6A, 7A, 8, 9, 10
and 11, Block A, Palisades Central in the John V. Vance Survey, Abstract No. 942, John V. Vance Survey, Abstract No. 1513, City of Richardson, Dallas and Collin County, Texas.

 
	 	 	  	 

 EXHIBIT B-l 

LEGAL DESCRIPTION OF THE PROPERTIES 
 Parcel A - Greenway I 
 Tract 1:  (Fee Simple)

 BEING a 3.216 acre tract of land situated in the City of Richardson, Dallas County, Texas; said tract being out of the
A.T. Nanny Survey, Abstract No. 1093, Dallas County, Texas, and being a portion of a tract of land conveyed to Oklahoma Publishing Co. by deed recorded in Volume 523, Page 1737, Dallas County Records, and recorded on March 25, 1965 in
Volume 650, Page 244, Collin County Records, said tract also being Lot 1, Block 4 of Greenway, an Addition to the City of Richardson, according to the map thereof recorded in Volume 83006, Page 1314, Map Records, Dallas County, Texas, said tract
being more particularly described as follows: 
 BEGINNING at a found 1/2 inch iron rod, said point being located in the
northwesterly right-of-way line of Greenville Avenue (a 100 foot right-of-way), said point being located in the southerly line of said Lot 1 and the point of curvature of curve to the left having a central angle of 11°03’51” a radius
of 1205.92 feet and a chord bearing and distance of South 49°13’44” West, 232.51 feet; 
 THENCE along said
curve to the left with the northwesterly right-of-way line of Greenville Avenue and the southerly line of said Lot 1, for an arc distance of 232.87 feet to a found 1/2 inch iron rod for corner; 

THENCE North 42°03’25” West, leaving said lines, a distance of 34.26 feet, to a found ‘x’ in concrete for
corner; 
 THENCE North 47°56’35” East, a distance of 20.00 feet to a set ‘x’ in concrete for
corner; 
 THENCE North 42°03’25” West, a distance of 177.00 feet to a found 1/2 inch iron rod for corner;

 THENCE South 47°56’35” West, a distance of 22.00 feet to a found ‘x’ in concrete for corner;

 THENCE North 42°03’25” West, a distance of 187.00 feet to a found ‘x’ in concrete for corner;

 THENCE South 47°56’35” West, a distance of 12.00 feet to a found ‘x’ in concrete for corner;

 THENCE North 42°03’25” West, a distance of 43.00 feet to a found ‘x’ in concrete for corner in
the southeasterly right-of-way line of Lakeside Boulevard (80 foot R.O.W.) and the northerly line of said Lot 1; 

  
 1 

 THENCE North 47°56’35” East, along the southeasterly right-of-way line
of said Lakeside Boulevard and the said northerly line of Lot 1, a distance of 247.14 feet to a found 1/2 inch iron rod said point being the point of curvature of a tangent curve to the right having a central angle of 57°36’27”, a
radius of 50.00 feet and a tangent length of 27.49 feet; 
 THENCE continuing along said curve to the right and said
southeasterly line of Lakeside Boulevard and the said northerly line of Lot 1, an arc distance of 50.27 feet to a found 1/2 inch iron rod said point being the curvature of a reverse curve to the left having a central angle of
25°12’55”, a radius of 118.00 feet, and a tangent length of 26.39 feet; 
 THENCE continuing along said
curve to the left and said southeasterly line of Lakeside Boulevard and the said northerly line of Lot 1, an arc distance of 51.93 feet to a found 1/2 inch iron rod, said point being the curvature of a reverse curve to the right having a central
angle of 57°36’29”, a radius of 50.00 feet, and a tangent length of 27.49 feet; 
 THENCE continuing along
said curve to the right and said southeasterly line of Lakeside Boulevard and the said northerly line of Lot 1, an arc distance of 50.27 feet to a found 1/2 inch iron rod, said point being the corner in southwesterly right-of-way line of Lawnview
Drive (80 feet R.O.W.) and the northeasterly line of said Lot 1; 
 THENCE South 42°03’25” East, continuing
along the said the southwesterly right-of-way line of said Lawnview Drive and the northeasterly line of said Lot 1, a distance of 208.82 feet to the found 1/2 inch iron rod of a curvature of a tangent curve to the right having a central angle of
04°36’17”, a radius of 668.40 feet and a tangent length of 26.87 feet; 
 THENCE continuing along said
curve to the right with the southwesterly right-of-way line of Lawnview Drive and the northeasterly line of said Lot 1, an arc distance of 53.72 feet to the found 1/2 inch iron rod of curvature of a tangent curve to the right having a central angle
of 92°12’47”, a radius of 90.00 feet and a tangent length of 93.55 feet; 
 THENCE continuing along said
curve to the right and said southwesterly line of Lawnview Drive and said northeasterly line of Lot 1, an arc distance of 144.85 feet to the POINT OF BEGINNING and CONTAINING 140,090.42 square feet or 3.216 acres of land, more or less.

 Tract 2:  (Easement Estate) 
 Access Easement Estate created in Mutual Access Easement dated May 2, 1985, filed for record on May 9, 1985 and recorded in Volume 85092, Page 963, Deed Records, Dallas County, Texas, and
amended by First Amendment to Mutual Access Easement recorded in Volume 96247, Page 3322 of the Deed Records of Dallas County, Texas, and by Second Amendment to Mutual Access Easement filed August 1, 2007, recorded under cc# 20070275777, Real
Property Records of Dallas County, Texas, including the following described land: 
 BEING a 0.012 acre tract of land in the
City of Richardson, Dallas County, Texas; said tract being out of the A.T. Nanny Survey, Abstract No. 1093, Dallas County, Texas, and being a portion of a tract of land conveyed by deed to Oklahoma Publishing Co. as recorded in Volume

  
 2 

 523, Page 1737, Deed Records, Dallas County, Texas, and recorded on March 25, 1965 in
Volume 650, Page 244, Collin County Records, said tract also being part of Lot 2, Block 4 of Greenway, an addition to the City of Richardson as recorded in Volume 83006, Page 1322, Map Records, Dallas County, Texas, and being more particularly
described as follows: 
 BEGINNING at a point for corner, said point being the northwest corner of said Lot 2 and the southwest
corner of Lot 1 of said Block 4, also being in the southerly right-of-way line of Lakeside Boulevard (a 80 foot R.O.W.); 

THENCE South 42° 03’ 25” East, leaving said southerly right-of-way line, for a distance of 43.00 feet to a point for
corner; 
 THENCE South 47° 56’ 35” West, for a distance of 12.00 feet to a point for corner; 

THENCE North 42° 03’ 25” West, for a distance of 43.00 feet to a point for corner, being in said southerly right-of-way
line of Lakeside Boulevard; 
 THENCE North 47° 56’ 35” East, for a distance of 12.00 feet to the POINT OF
BEGINNING and CONTAINING 516 square feet or 0.012 acre of land, more or less. 
 Tract 3: (Easement Estate)

 Parking Easement Estate created in Mutual Access Easement dated May 2, 1985, filed for record on May 9, 1985
and recorded in Volume 85092, Page 963, Deed Records, Dallas County, Texas, and amended by First Amendment to Mutual Access Easement recorded in Volume 96247, Page 3322 of the Deed Records of Dallas County, Texas, and by Second Amendment to Mutual
Access Easement filed August 1, 2007, recorded under cc# 20070275777, Real Property Records of Dallas County, Texas. 

  
 3 

 Parcel B - Greenway II 

Tract 1:  (Fee Simple) 
 BEING 4.902 acre tract of land out of the A.T. Nanny Survey, Abstract No. 1093, Dallas County, Texas and being all of Lot 1, Block 2, Greenway, an addition to the City of Richardson, Texas, as
recorded in Volume 85126, Page 2756, Map Records, Dallas County, Texas. Said 4.902 acre tract of land being more particularly described by metes and bounds as follows: 
 BEGINNING at a found “x” in concrete, being located at the southeast corner of said Lot 1 and also being located in the north right-of-way of Lakeside Boulevard (an 80’ R.O.W.) and also
being the point of curvature of a curve to the left, having a delta of 19°32’55”, a radius of 440.00 feet and a chord bearing and distance of North 59°10’36” West, 149.40 feet; 

THENCE along said curve and following along said north line of Lakeside Boulevard, an arc distance of 150.12 feet to a found 1/2 inch
iron rod and the point of tangency of said curve; 
 THENCE North 68°57’04” West, continuing along said north line
of Lakeside Boulevard, for a distance of 255.00 feet to a set 1/2 inch iron rod, being located in the east right-of-way line of the H.& T.C. Railroad property (a 100’ R.O.W.); 

THENCE North 21°02’56” East, leaving said north line of Lakeside Blvd, and following along said east line of H. &
T.C. Railroad tract, for a distance of 295.00 feet to a set 1/2 inch iron rod; 
 THENCE North 89°51’07” East,
leaving said east line of H. & T.C. Railroad tract, for a distance of 609.71 feet to a found 5/8 inch iron rod; 

THENCE South 00°08’53” East, for a distance of 129.51 feet to a found 5/8 inch iron rod; 

THENCE South 47°56’35” West along the east line of said Lot 1 and also being the west property line of Lot 2, Block 2,
Greenway Addition, recorded in Volume 87004, Page 3217,. M.R.D.C.T., for a distance of 471.01 feet to the POINT OF BEGINNING and CONTAINING 213,549 square feet or 4.902 acres of land, more or less. 

Tract 2:  (Easement Estate) 
 Mutual Access Easement along portions of Lot 2, Block 2, Greenway Addition as depicted on the plat recorded in Volume 87004, Page 3217, Map Records, Dallas County, Texas. 

  
 4 

 Parcel C - Greenway III 

Tract 1:  (Fee Simple) 
 BEING a 4.031 acre tract of land situated in the City of Richardson, Dallas County, Texas; said tract being out of the A.T. Nanny Survey, Abstract No. 1093, Dallas County, Texas, and being a portion
of a tract of land conveyed to Oklahoma Publishing Co. by deed recorded in Volume 523, Page 1737, Dallas County Records, and recorded on March 25, 1965 in Volume 650, Page 244, Collin county Records, said tract also being Lot 2, Block 4 of
Greenway, an Addition to the City of Richardson, according to the Map thereof recorded in Volume 83006, Page 1322, Map Records, Dallas County, Texas, and being more particularly described as follows: 

COMMENCING from a point in the northwesterly right-of-way line of Greenville Avenue (120 foot R.O.W.), said point being the southwest
corner of Tract 2, Parcel C as conveyed to Hunt Properties as recorded in Volume 69193, Page 1513, Dallas County, Texas; 

THENCE South 60 degrees 46 minutes 59 seconds West, along the northwesterly right-of-way of said Greenville Avenue for a distance of
512.53 feet to the point of curvature of a tangent curve to the left having a central angle of 17 degrees 05 minutes 11 seconds, a radius of 1205.92 feet, and a tangent length of 181.16 feet; 

THENCE continuing along said curve to the left with the northwesterly right-of-way line of said Greenville Avenue, an arc distance of
359.62 feet to a found 1/2 inch iron rod the POINT OF BEGINNING, said point being the most southerly southeast corner of said Lot 2 and the point of curvature of a continuous curve to the left having a central angle of 14 degrees 20 minutes 06
seconds a radius of 1205.92 feet, and a tangent length of 151.65 feet; 
 THENCE continuing along said curve to the left with
the northwesterly right-of-way line of said Greenville Avenue and the southeasterly line of said Lot 2, for an arc distance of 301.71 feet to a found “X” in concrete for corner; 

THENCE North 60 degrees 38 minutes 18 seconds West, leaving said northwesterly line of said Greenville Avenue and following the westerly
line of said Lot 2, a distance of 84.99 feet to a found chiseled “X” on face of curb; 
 THENCE North 69 degrees 03
minutes 25 seconds West, continuing along said westerly line, a distance of 332.83 feet to a found 1/2 inch iron rod for corner in the southeasterly right-of-way line of Lakeside Boulevard (80 foot R.O.W.) and the northwesterly line of said Lot 2;

 THENCE North 20 degrees 56 minutes 35 seconds East, along the southeasterly right-of-way line of said Lakeside Boulevard and
the northwesterly line of said Lot 2, a distance of 90.00 feet to a found 1/2 inch iron rod for corner, said point being the point of curvature of a tangent curve to the right having a central angle of 27 degrees 00 minutes 00 seconds a radius of
760.00 feet and a tangent length of 182.46 feet; 

  
 5 

 THENCE continuing along said curve to the right with the southeasterly right-of-way line of
Lakeside Boulevard and said northwesterly line of said Lot 2, an arc distance of 358.14 feet to a found 1/2 inch iron rod for corner; 
 THENCE North 47 degrees 56 minutes 35 seconds East, along the southeasterly right-of-way line of Lakeside Boulevard and said northwesterly line of said Lot 2, a distance of 33.94 feet, to an “X”
found in concrete for corner; 
 THENCE South 42 degrees 03 minutes 25 seconds East, leaving said lines, a distance of 43.00
feet to an “X” found in concrete for corner; 
 THENCE North 47 degrees 56 minutes 35 seconds East, a distance of
12.00 feet to an “X” found in concrete for corner; 
 THENCE South 42 degrees 03 minutes 25 seconds East, a distance
of 187.00 feet to an “X” found in concrete for corner; 
 THENCE North 47 degrees 56 minutes 35 seconds East, a
distance of 22.00 feet to a set 1/2 inch iron rod for corner; 
 THENCE South 42 degrees 03 minutes 25 seconds East, a distance
of 177.00 feet to an “X” found in concrete for corner; 
 THENCE South 47 degrees 56 minutes 35 seconds West, a
distance of 20.00 feet to an “X” found in concrete for corner; 
 THENCE South 42 degrees 03 minutes 25 seconds East,
a distance of 34.26 feet to the POINT OF BEGINNING and CONTAINING 175,592.29 square feet or 4.031 acres of land, more or less. 

Tract 2:  (Easement Estate) 
 Easement Estate created in Mutual Easement Agreement executed by and between Dal-Mac Greenway 1A, Ltd., a Texas limited partnership and Crow-TCB-Richardson, a Texas limited partnership, dated
March 15, 1985, filed for record on June 14, 1985 and recorded in Volume 85117, Page 2633, Deed Records, Dallas County, Texas, including the following described land: 

BEING a 0.024 acre tract of land out of Lot 3, Block 4, Greenway, an addition to the City of Richardson, Texas, as recorded in Volume
85040, Page 4683, Map Records, Dallas County, Texas and being the same tract described as Exhibit “C”, as recorded in Volume 85117, Page 2633, Deed Records, Dallas County, Texas. Said 0.024 acre tract of land being more particularly
described by metes and bounds as follows: 
 BEGINNING at a point, being the northeast corner of said Lot 3 and the southeast
corner of Lot 2, Block 4, Greenway addition, as recorded in Volume 83006, Page 1322, M.R.D.C.T. and also being located in the northwesterly right-of-way line of Greenville Avenue (a 120’ right-of-way) 

  
 6 

 and being the point of curvature of a curve to the left, having a delta of 00 degrees 45
minutes 37 seconds, a radius of 1,205.92 feet and a chord bearing and distance of South 43 degrees 18 minutes 24 seconds West, 16.00 feet; 
 THENCE along said and following along the easterly line of said Lot 3 and the northwesterly line of said Greenville Avenue, an arc distance of 16.00 feet to the end of said curve; 

THENCE North 56 degrees 44 minutes 25 seconds West, leaving said lines, for a distance of 81.32 feet to a point; 

THENCE North 29 degrees 21 minutes 42 seconds East, for a distance of 10.00 feet to a point located in the north line of said Lot 3 and
the south line of said Lot 4; 
 THENCE South 60 degrees 38 minutes 18 seconds East, following along said lines, for a distance
of 84.99 feet to the POINT OF BEGINNING and CONTAINING 1,065 square feet or 0.024 acres of land, more or less. 
 Tract
3:  (Easement Estate) 
 Access Easement Estate created in Mutual Access Easement dated May 2, 1985,
filed for record on May 9, 1985 and recorded in Volume 85092, Page 963, Deed Records, Dallas County, Texas, and amended by First Amendment to Mutual Access Easement recorded in Volume 96247, Page 3322 of the Deed Records of Dallas County,
Texas, and by Second Amendment to Mutual Access Easement filed August 1, 2007, recorded under cc# 20070275777, Real Property Records of Dallas County, Texas, including the following described land: 

BEING a 0.012 acre tract of land in the City of Richardson, Dallas County, Texas; said tract being out of the A.T. Nanny Survey, Abstract
No. 1093, Dallas County, Texas, and being a portion of a tract of land conveyed by deed to Oklahoma Publishing Co. as recorded in Volume 523, Page 1737, Deed Records, Dallas County, Texas, and recorded on March 25, 1965 in Volume 650, Page
244, Collin County Records, said tract also being part of Lot 1, Block 4 of Greenway, an addition to the City of Richardson as recorded in Volume 83006, Page 1314, Map Records, Dallas County, Texas, and being more particularly described as follows:

 BEGINNING at a point for corner, said point being the southwest corner of said Lot 1 and the northwest corner of Lot 2 of
said Block 4, also being in the southerly right-of-way line of Lakeside Boulevard (a 80 foot R.O.W.); 
 THENCE North
47°56’35” East, along said southerly right-of-way line, for a distance of 12.00 feet to a point for corner; 

THENCE South 42°03’25” East, leaving said southerly right-of-way line, for a distance of 43.00 feet to a point for corner;

 THENCE South 47°56’35” West, for a distance of 12.00 feet to a point for corner; 

  
 7 

 THENCE North 42°03’25” West, for a distance of 43.00 feet to the POINT OF
BEGINNING and CONTAINING 516 square feet or 0.012 acres of land, more or less. 
 Tract 4:  (Easement
Estate) 
 Parking Easement Estate created in Mutual Access Easement dated May 2, 1985, filed for record on May 9,
1985 and recorded in Volume 85092, Page 963, Deed Records, Dallas County, Texas, and amended by First Amendment to Mutual Access Easement recorded in Volume 96247, Page 3322 of the Deed Records of Dallas County, Texas, and by Second Amendment to
Mutual Access Easement filed August 1, 2007, recorded under cc# 20070275777, Real Property Records of Dallas County, Texas. 

  
 8 

 Parcel D - Palisades I 

Tract I:  (Fee Simple) 
 Being a tract or parcel of land situated in the John J. Vance Survey, Abstract No. 1513, City of Richardson, Collin and Dallas County, Texas, as conveyed by deed recorded in County Clerks’
No. 97-0037026, Deed Records, Collin County, Texas, and being a part of Lot 1, Block A, of Second Replat Palisades Central, an addition to the City of Richardson, Dallas and Collin Counties, Texas, according to the plat recorded in Volume
85164, Page 2204, Deed Records, Dallas County, Texas, and Cabinet F, Slides 268-269, Plat Records, Collin County, Texas, and being more particularly described as follows: 
 BEGINNING at a chiseled “X” set in concrete for corner at the intersection of the northwest line of U.S. Highway No. 75 (variable width right-of-way) and the north line of Palisades
Boulevard (60.0 foot right-of-way), said rod being at the beginning of a curve to the left; 
 THENCE in a northwesterly
direction along the north line of said Palisades Boulevard and along said curve to the left whose chord bears North 80°17’49” West a distance of 130.93 feet, having a radius of 360.00 feet, a central angle of 20°57’14”,
and an arc length of 131.66 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said curve to the left; 
 THENCE South 89°13’34” West along the north line of said Palisades Boulevard a distance of 597.99 feet to a chiseled “X” set in concrete for corner, said “X” being the
southeast corner of Lot 10, Block A of Palisades Central, an addition to the City of Richardson according to the plat recorded in Document No. 200600353953, Deed Records, Dallas County, Texas and Book 2006, Page 622, Plat Records, Collin County,
Texas; 
 THENCE North 00°46’26” West along the common line between said Lot 1 and said Lot 10 for a distance of
230.31 feet to a chiseled “X” set in concrete for corner at the beginning of a curve to the right; 
 THENCE in a
northeasterly direction along said common line and said curve to the right whose chord bears North 08°33’46” East a distance of 81.12 feet, having a radius of 250.00 feet, a central angle of 18°40’24”, and an arc length
of 81.48 feet to a chiseled “X” set in concrete for corner at the end of said curve to the right and the beginning of a non-tangent curve to the left, said “X” being the most westerly southwest corner of Lot 3, Block A of said
Second Replat Palisades Central; 
 THENCE in a southeasterly direction along the common line between said Lots 1 and 3, and
along said non-tangent curve to the left whose chord bears South 76°05’49” East a distance of 238.17 feet, having a radius of 470.00 feet, a central angle of 29°21’15”, and an arc length of 240.79 feet to a 1/2 inch iron
rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said non-tangent curve to the left; 

THENCE North 89°13’34 East along said common line a distance of 20.44 feet to a 1/2 inch iron rod with yellow plastic cap
stamped “RLG INC” set for corner at the beginning of a curve to the left; 

  
 9 

 THENCE in a northeasterly direction along said common line and said curve to the left whose
chord bears North 65°25’54” East a distance of 282.42 feet, having a radius of 350.00 feet, a central angle of 47°35’20”, and an arc length of 290.70 feet to a chiseled “X” set in concrete for corner at the end
of said curve to the left and the beginning of a compound curve to the left; 
 THENCE in a northeasterly direction along said
common line and said compound curve to the left whose chord bears North 40°36’21” East a distance of 41.39 feet, having a radius of 1150.00 feet, a central angle of 02°03’44”, and an arc length of 41.39 feet to a 1/2 inch
iron rod with yellow plastic cap stamped “RLG INC” set for corner at the southwest corner of Lot 2, Block A of said Second Replat Palisades Central; 
 THENCE North 89°13’34” East along the common line between said Lot 2 and said Lot 1, a distance of 335.40 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set
for corner in the northwest line of said U.S. Highway No. 75, said rod being in a non-tangent curve to the right; 
 THENCE
in a southwesterly direction along the northwest line of said U.S. Highway No. 75 and said non-tangent curve to the right whose chord bears South 19°26’58” West a distance of 142.18 feet, having a radius of 5574.65 feet, a central
angle of 01°27’41”, and an arc length of 142.19 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said non-tangent curve to the right; 

THENCE South 20°10’49” West along the northwest line of said U.S. Highway No. 75 a distance of 305.60 feet to the
POINT OF BEGINNING, and containing 259,414 square feet or 5.9553 acres of land, more or less. 
 Tract II:  (Easement
Estate) - Shown for informational purposes only. This tract has not been surveyed. 
 Being a non exclusive easement for
vehicular and pedestrian ingress, egress and regress over, across, through and along private roads described in Reciprocal Easement Agreement between Carter Crowley Properties, Inc., a Texas corporation and Home Interiors & Gifts, Inc., a
Texas corporation, dated October 15, 1993, filed November 5, 1993, recorded in/under Volume 93217, Page 3015 of the Real Property Records of DALLAS County, Texas (Also recorded in/under Clerk’s No. 93 0097019 of the Real Property
Records of COLLIN County, Texas). Said private roads are shown as Roads A, B, C, E and F on plats recorded in Volume 85054, Page 4060, Map Records of DALLAS County, Texas and Volume E, Pages 8 and 9, Map Records of COLLIN County, Texas, SAVE AND
EXCEPT those portions thereof abandoned by Replat recorded in Volume 2001015, Page 4931 of the Map Records of DALLAS County, Texas, and recorded in Volume M, Page 418 of the Map Records of COLLIN County, Texas. 

Together with Easement Estate created by document in/under Volume 2001146, Page 02107 of the Real Property Records of Dallas County,
Texas. 
 Tract III:  (Fee Simple) 
 Being a tract or parcel of land situated in the John J. Vance Survey, Abstract No. 1513, City of Richardson, Collin and Dallas County, Texas, as conveyed by deed recorded in County Clerks’

  
 10 

 No. 97-0037026, Deed Records, Collin County, Texas, and being a part of Lot 1, Block A,
of Second Replat Palisades Central, an addition to the City of Richardson, Dallas and Collin Counties, Texas, according to the plat recorded in Volume 85164, Page 2204, Deed Records, Dallas County, Texas, and Cabinet F, Slides 268-269, Plat Records,
Collin County, Texas, and being more particularly described as follows: 
 BEGINNING at a point for corner at the intersection
of the northwest line of U.S. Highway No. 75 (variable width right-of-way) and the south line of Palisades Boulevard (60.0 foot right-of-way), said rod being at the beginning of a curve to the left, from which a iron rod with red cap found
bears South 62° 22’ 57” West a distance of 0.18 feet; 
 THENCE South 20° 10’
49” West along the northwest line of said U.S. Highway No. 75 a distance of 193.70 feet to a
 1/2 inch iron rod with yellow plastic cap stamped
“RLG INC” set for corner at the northeast corner of Lot 1A, Block A of Palisades Central, an addition to the City of Richardson, Dallas County, Texas, according to the plat recorded in Volume 90158, Page 4352, Plat Records, Collin County,
Texas, from which a  3/4” iron rod found bears
South 89° 17’ 48” East a distance of 1.35 feet; 
 THENCE North 69° 49’
11” West along the northerly line of said Lot 1A a distance of 30.00 feet to a  1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner, from which a  3/4” iron rod found bears South 88° 35’ 14” East a distance of 1.37 feet; 

THENCE South 89° 13’ 34” West along said northerly line a distance of 383.00 feet to a point for corner
in the east line of a tract of land conveyed to Fossil, Inc., by deed recorded in Volume 2005171, Page 12536, Deed Records, Dallas County, Texas, said rod being the northwest corner of said Lot 1A, from which a  1/2 inch iron rod found bears South 05° 29’ 52” East a
distance of 0.19 feet; 
 THENCE North 00° 46’ 26” West along the common line between
said Lot 1, and said Fossil, Inc., tract a distance of 190.00 feet to a  1/2” iron rod found for corner in the south line of said Palisades Boulevard, said rod also being at the northeast corner of said Fossil, Inc., tract; 

THENCE North 89° 13’ 34” East along the south line of said Palisades Boulevard, a distance of 373.00
feet to a  1/2 inch iron rod with yellow plastic cap
stamped “RLG INC” set for corner at the beginning of a curve to the right; 
 THENCE in a southeasterly
direction along the south line of said Palisades Boulevard and along said curve to the right whose chord bears South 80°17’ 46” East a distance of 109.11, having a central angle of 20° 57’ 15”, and an arc length of 109.72
feet to the POINT OF BEGINNING, and containing 85,183 square feet or 1.9555 acres of land, more or less. 

  
 11 

 Parcel E - Palisades II 
 Tract 1:  (Fee Simple) 
 Being a tract or parcel of land
situated in the John V. Vance Survey, Abstract No. 942 and the John J. Vance Survey, Abstract No. 1513, City of Richardson, Collin and Dallas County, Texas, as conveyed by deed recorded in County Clerks’ No. 97-0037026, Deed
Records, Collin County, Texas, and being part of Lot 3, Block A of Second Replat Palisades Central, an addition to the City of Richardson, Dallas and Collin Counties, Texas, according to the plat recorded in Volume 85164, Page 2204, Deed Records,
Dallas County, Texas, and Cabinet F, Slides 268-269, Plat Records, Collin County, Texas, and being more particularly described as follows: 
 BEGINNING at a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner in the northwest line of U.S. Highway No. 75 (variable width right-of-way), and being the most
easterly northeast corner of said Lot 3 and the southeast corner of Reserve Parcel “C”, Palisades Central, an addition to the City of Richardson according to the plat recorded in Volume 85054, Page 4060, Deed Records, Dallas County, Texas
and Cabinet E, Slide 8-9, Plat Records, Collin County, Texas, said rod being in a curve to the right; 
 THENCE in a southerly
direction along the northwest line of said U.S. Highway No. 75 and said curve to the right and whose chord bears South 15°55’20” West a distance of 150.00 feet, having a radius of 5579.65 feet, a central angle of
01°32’25”, and an arc length of 150.00 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner, said rod being the easterly common corner between said Lot 3 and Lot 2, Block A, of said Second
Replat Palisades Central; 
 THENCE North 73° 18’ 27” West along the common line between said Lots 2 and 3 a
distance of 258.10 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE
South 59° 57’ 23” West along said common line a distance of 13.71 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE South 13° 13’ 14” West along said common line a distance of 152.52 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner at the beginning of a
curve to the right; 
 THENCE in a southwesterly direction along said common line, and along said curve to the right whose chord
bears South 27° 25’ 44” West a distance of 564.53 feet, having a radius of 1150.00 feet, a central angle of 28° 25’ 00”, and passing at a distance of 528.97 feet the westerly common corner between said Lot 2 and Lot 1,
Block A, of said Second Replat Palisades Central, and continuing for a total arc length of 570.36 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said curve to the right, said rod being
the beginning of a compound curve to the right; 

  
 12 

 THENCE in a southwesterly direction along the common line between said Lots 1 and 3, and
along said compound curve to the right whose chord bears South 65°25’54” West a distance of 282.42 feet, having a radius of 350.00 feet, a central angle of 47°35’20”, and an arc length of 290.70 feet to a 1/2 inch iron
rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said compound curve to the right; 
 THENCE
South 89°13’34” West along said common line a distance of 20.44 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner at the beginning of a curve to the right; 

THENCE in a northwesterly direction along said common line, and along said curve to the right whose chord bears North
76°05’49” West a distance of 238.17 feet, having a radius of 470.00 feet, a central angle of 29°21’15”, and an arc length of 240.79 feet to a chiseled “X” set in concrete for corner in the common line between
said Lot 1 and Lot 10, Block A of Palisades Central, an addition to the City of Richardson according to the plat recorded in Document No. 200600353953, Deed Records, Dallas County, Texas and Book 2006, Page 622, Plat Records, Collin County, Texas,;

 THENCE North 28° 34’ 51” East along said common line, passing at a distance of 50.00 feet the most easterly
common corner between said Lot 10 and Lot 9, Block A of said Palisades Central continuing along the common line between said Lots 3 and 9 a total distance of 100.00 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set
for corner at the beginning of a non-tangent curve to the left, said rod being a common corner between said Lot 3 and Lot 9, said corner being at the beginning of a non-tangent curve to the left, from which a found 1/2 inch iron rod bears North
23° 42’ 41” East a distance of 0.76 feet; 
 THENCE in a easterly direction along said common line and said
non-tangent curve to the left whose chord bears South 76° 05’ 47” East a distance of 187.50 feet, having a radius of 370.00 feet, a central angle of 29° 21’ 18” and an arc length of 189.57 feet to a 1/2 inch iron rod
found for corner at the end of said non-tangent curve to the left; 
 THENCE North 89° 13’ 34” East along said
common line a distance of 20.44 feet to a 1/2 inch iron rod found for corner at the beginning of a curve to the left; 
 THENCE
in a easterly direction along said common line and said curve to the left whose chord bears North 75° 21’ 12” East a distance of 119.88 feet, having a radius of 250.00 feet, a central angle of 27° 44’ 44” and an arc
length of 121.06 feet to a 1/2 inch iron rod found for corner at the end of said curve to the left, from which a found 3/4” iron rod bears North 81° 30’ 46” East a distance of 1.19 feet; 

THENCE North 45° 23’ 56” West along said common line a distance of 207.95 feet to a 1/2 inch iron rod with yellow plastic
cap stamped “RLG INC” set for corner; 
 THENCE North 44° 36’ 04” East along said common line a distance
of 35.83 feet to a 1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner, from which a found 3/4” iron rod bears North 88° 25’20” East a distance of 1.32 feet; 

  
 13 

 THENCE North 45° 23’ 56” West along said common line, passing at a distance of
73.96 feet the easterly common corner between Lot 8, Block A of said Palisades Central and said Lot 9, continuing along the common line between said Lots 3 and 8 a total distance of 114.41 feet to a 1/2 inch iron rod with yellow plastic cap stamped
“RLG INC” set for corner, from which a found 1/2” iron rod bears South 29° 30’ 33” West a distance of 0.34 feet; 
 THENCE North 00° 23’ 56” West along said common line a distance of 128.12 feet to a chiseled “X” set in concrete for corner; 

THENCE North 44° 36’ 04” East along said common line a distance of 278.57 feet to an “X” marked on pavement found
for corner in a southwesterly line of Lot 4B, Block A of said Palisades Central, said “X” being the most northerly common corner between said Lot 3 and said Lot 8; 
 THENCE South 45° 23’ 56” East along the common line between said Lots 3 and 4B a distance of 356.01 feet to an iron rod with yellow plastic cap stamped “BGT” found for corner at
the beginning of a non-tangent curve to the left; 
 THENCE in a northeasterly direction along said common line and said
non-tangent curve to the left whose chord bears North 18° 29’ 03” East a distance of 192.65 feet, having a radius of 1050.00 feet, a central angle of 10° 31’ 38” and an arc length of 192.92 feet to a 1/2 inch iron rod
with yellow plastic cap stamped “RLG INC” set for corner at the end of said non-tangent curve to the left, from which a found 1/2” iron rod bears South 50° 52’ 45” East a distance of 0.23 feet; 

THENCE North 13° 13’ 14” East along said common line a distance of 295.00 feet to a 1/2” iron rod with yellow plastic
cap stamped “RLG INC” set for corner, from which a found 1/2 inch iron rod bears North 21° 08’ 10” East a distance of 1.19 feet; 
 THENCE South 76° 46’ 46” East along said common line and passing at a distance of 50.00 feet an easterly corner of said Lot 4B and continuing for a total distance of 100.00 feet to a 1/2
inch iron rod with yellow plastic cap stamped “RLG INC” set for corner in a westerly line of said Reserve Parcel “C”; 
 THENCE South 13°13’14” West along the common line between said Lot 3 and said Reserve Parcel “C” a distance of 10.97 feet to a 1/2 inch iron rod with yellow plastic cap stamped
“RLG INC” set for corner; 
 THENCE South 34°0440” East along said common line a distance of 13.55 feet to a
1/2 inch iron rod with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE South 81°22’34”
East along said common line a distance of 265.57 feet to the POINT OF BEGINNING, and containing 319,915 square feet or 7.3442 acres of land, more or less. 

  
 14 

 Tract 2:  (Easement Estate) - Shown for informational purposes only.
This tract has not been surveyed. 
 Being a non-exclusive easement for vehicular and pedestrian ingress, egress and regress
over, across, through and along private roads described in Reciprocal Easement Agreement executed by and between Carter-Crowley Properties, Inc. a Texas corporation and Home Interiors & Gifts, Inc. a Texas corporation, dated effective as of
October 15, 1993, filed November 5, 1993, recorded in Volume 93217, Page 3015, Deed Records of Dallas County, Texas and under Clerk’s File No. 93-0097019, Land Records, Collin County, Texas. Said private roads are shown as Roads
A, B, C, E and F on plats recorded in Volume 85054, Page 4060 Map Records, Dallas County, Texas and Cabinet E, Page 8 and 9, Map Records, Collin County, Texas. 
 Together with an easement estate created in/under Volume 2001146, Page 2107, Real Property Records of Dallas County, Texas. 

  
 15 

 Parcel F - Palisades III  

Tract 1:  (Fee Simple) 
 Being a tract or parcel of land situated in the John V. Vance Survey, Abstract No. 942 and the John J. Vance Survey, Abstract No. 1513, City of Richardson, Collin and Dallas County, Texas, as
conveyed by deed recorded in County Clerks’ No. 97-0037026, Deed Records, Collin County, Texas, and being all of Lots 4B, 5A, 6A, 7A, 8, 9, 10 and 11, Block A, Palisades Central, an addition to the City of Richardson according to the plat
recorded in Document No. 200600353953, Deed Records, Dallas County, Texas and Book 2006, Page 622, Plat Records, Collin County, Texas, and being more particularly described as follows: 

BEGINNING at a 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner at the intersection of the east line
of Collins Boulevard (a 100’ right-of-way) and the north line of Palisades Boulevard (a 60’ right-of-way), said rod being the southwest corner of said Lot 10, from which a found iron rod with yellow plastic cap stamped “BGT”
bears North 29°06’10” West a distance of 0.89 feet; 
 THENCE North 00° 46’ 26” West along the
common line between said Lot 10 and said Collins Boulevard for a distance of 611.30 feet to a 1/2” iron rod with yellow plastic cap stamped “RLG INC” found for corner at the beginning of a tangent curve to the right; 

THENCE in a northerly direction along said tangent curve to the right and said common line whose chord bears North 02° 39’
49” East a distance of 233.84 feet, having a radius of 1950.00 feet, a central angle of 6° 52’ 30”, and an arc length of 233.98 feet to 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner and end
of said curve to the right; 
 THENCE North 06° 06’ 04” East along said common line a distance of 285.77 feet to a
1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner and the beginning of a tangent curve to the right; 
 THENCE in a northeasterly direction along said common line and said tangent curve to the right whose chord bears North 20° 40’ 19” East a distance of 357.24 feet, having a radius of 710.00
feet, a central angle of 29° 08’ 30”, passing at an arc length of 277.09 feet the westerly common corner of said Lots 10 and 11, continuing along the common line between said Lot 11 and said Collins Boulevard for a total arc length of
361.12 feet to a 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said curve to the right and the beginning of a reverse curve to the left; 

THENCE in a northeasterly direction along said common line and said reverse curve to the left whose chord bears North 23° 38’
13” East a distance of 325.91 feet, having a radius of 810.00 feet, a central angle of 23° 12’ 42” and an arc length of 328.15 feet to a 1/2” iron rod with yellow plastic cap stamped “RLG INC” found for corner at
the intersection of the east line of said Collins Boulevard and the southerly line of Palisades Creek Drive (a 60’ right-of-way), said rod being the northwesterly corner of said Lot 11 and the beginning of a non-tangent curve to the left;

  
 16 

 THENCE in an easterly direction along the common line between said Palisades Creek Drive and
said Lot 11 and along said non-tangent curve to the left whose chord bears North 77° 56’ 28” East a distance of 181.42 feet, having a radius of 330.00 feet, a central angle of 31° 54’ 31” and an arc length of 183.78 feet
to a 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said non-tangent curve to the left, from which a found 1/2” iron rod bears North 35° 08’ 40” West a distance of 0.46 feet;

 THENCE North 61° 59’ 13” East along said common line a distance of 337.06 feet to a chiseled “X” set
in concrete for corner, said “X” being the northerly common corner between said Lot 11 and Reserve Parcel “C”, Palisades Central, an addition to the City of Richardson according to the plat recorded in Volume 85054, Page 4060,
Deed Records, Dallas County, Texas and Cabinet E, Slide 8-9, Plat Records, Collin County, Texas, and the beginning of a non-tangent curve to the right, from which a found chiseled “X” bears North 13° 48’ 15” West a distance
of 0.46 feet; 
 THENCE in a southeasterly direction along the common line between said Lot 11 and said Reserve Parcel
“C” and along said non-tangent curve to the right whose chord bears South 21° 09’ 49” East a distance of 109.76 feet, having a radius of 460.00 feet, a central angle of 13° 42’ 12” and an arc length of 110.02
feet to a chiseled “X” set in concrete for corner at the end of said non-tangent curve to the right and the beginning of a reverse curve to the left, from which a found chiseled “X” bears North 13° 27’ 14” West a
distance of 0.55 feet; 
 THENCE in a southeasterly direction along said common line and said reverse curve to the left whose
chord bears South 23° 21’ 19” East a distance of 107.90 feet, having a radius of 343.22 feet, a central angle of 18° 05’ 13” and an arc length of 108.35 feet to a chiseled “X” set in concrete for comer at the
end of said reverse curve to the left, from which a found chiseled “X” bears North 23° 45’ 56” West a distance of 0.45 feet; 
 THENCE South 32° 23’ 55” East along said common line a distance of 30.75 feet to a chiseled “X” set in concrete for corner in the northerly line of said Lot 6A, said “X”
being the most easterly corner of said Lot 11, and the beginning of a non-tangent curve to the right, from which a found chiseled “X” bears South 37° 35’ 16” East a distance of 2.10 feet; 

THENCE in an easterly direction along the common line between said Lot 6A and said Reserve Parcel “C”, and along said
non-tangent curve to the right whose chord bears North 69° 37’ 16” East a distance of 249.90 feet, having a radius of 600.00 feet, a central angle of 24° 02’ 22”, passing at an arc length of 233.65 feet the northerly
common corner between said Lot 6A and said Lot 5A, continuing along the common line between said Lot 5A and said Reserve Parcel “C” for a total arc length of 251.74 feet to a 1/2” iron rod with yellow plastic cap stamped “RLG
INC” set for corner and the end of said non-tangent curve to the right and the beginning of a compound curve to the right, 

THENCE in a southeasterly direction along said common line and said compound curve to the right whose chord bears South 55° 51’
33” East a distance of 297.26 feet, having a radius of 220.00 feet, a central angle of 85° 00’ 00” and an arc length of 326.38 feet to a 1/2” iron rod with 

  
 17 

 yellow plastic cap stamped “RLG INC” set for corner at the end of said compound
curve to the right and the beginning of a compound curve to the right; 
 THENCE in a southerly direction along said common line
and said compound curve to the right whose chord bears South 00° 04’ 10” East a distance of 399.99 feet, having a radius of 870.00 feet, a central angle of 26° 34’ 47”, passing at an arc length of 260.07 feet the easterly
common corner between said Lots 5A and 4B, continuing along the common line between Lot 4B and said Reserve Parcel “C” a total arc length of 403.60 feet to a chiseled “X” found in concrete for corner at the end of said compound
curve to the left; 
 THENCE South 13° 13’ 14” West along said common line, passing at a distance of 73.76 feet a
chiseled “X” found at the common corner between said Reserve Parcel “C” and Lot 3, Block A, Second Replat of Palisades Central, an addition to the City of Richardson according to the plat recorded in Volume 85164, Page 2204, Deed
Records, Dallas County, Texas and Cabinet F, Slide 268-269, Plat Records, Collin County, Texas, continuing for a total distance of 75.00 feet to a chiseled “X” set in concrete for comer, said “X” being an east corner of said Lot
4B; 
 THENCE North 76° 46’ 46” West along the common line between said Lots 4B and 3 a distance of 50.00 feet to
a 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner, from which a found 1/2” iron rod bears North 21° 08’ 10” East a distance of 1.19 feet; 

THENCE South 13° 13’ 14” West along said common line a distance of 295.00 feet to a 1/2” iron rod with yellow plastic
cap stamped “RLG INC” set for corner at the beginning of a tangent curve to the right, from which a found 1/2” iron rod bears South 50° 52’ 45” East a distance of 0.23 feet; 

THENCE in a southeasterly direction along said common line and said tangent curve to the right whose chord bears South 18° 29’
03” West a distance of 192.65 feet, having a radius of 1050.00 feet, a central angle of 10° 31’ 38” and an arc length of 192.92 feet to an iron rod with yellow plastic cap stamped “BGT” found for corner at the end of
said tangent curve to the right; 
 THENCE North 45° 23’ 56” West along said common line a distance of 356.01 feet
to an “ marked on pavement found for corner, said “X” being the most northerly common corner between said Lot 3 and said Lot 8; 
 THENCE South 44° 36’ 04” West along the common line between said Lots 3 and 8 a distance of 278.57 feet to a chiseled “X” set in concrete for corner; 

THENCE South 00° 23’ 56” East along said common line a distance of 128.12 feet to a 1/2” iron rod with yellow plastic
cap stamped “RLG INC” set for corner, from which a found 1/2” iron rod bears South 29° 30’ 33” West a distance of 0.34 feet; 
 THENCE South 45° 23’ 56” East along said common line, passing at a distance of 40.45 feet the easterly common corner between said Lots 8 and 9, continuing along the common line between said
Lots 3 and 9 a total distance of 114.41 feet to a 1/2” iron rod with yellow plastic cap 

  
 18 

 stamped “RLG INC” set for corner, from which a found 3/4” iron rod bears North 88°
25’20” East a distance of 1.32 feet; 
 THENCE South 44° 36’ 04” West along said common line a distance
of 35.83 feet to a 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE South
45° 23’ 56” East along said common line a distance of 207.95 feet to a 1/2” iron rod found for corner at the beginning of a non-tangent curve to the right, from which a found 3/4” iron rod bears North 81° 30’
46” East a distance of 1.19 feet; 
 THENCE in a westerly direction along said common line and said non-tangent curve to
the right whose chord bears South 75° 21’ 12” West a distance of 119.88 feet, having a radius of 250.00 feet, a central angle of 27° 44’ 44” and an arc length of 121.06 feet to a 1/2” iron rod found for corner at the
end of said non-tangent curve to the right; 
 THENCE South 89° 13’ 34” West along said common line a distance of
20.44 feet to a 1/2” iron rod found for corner at the beginning of a tangent curve to the right; 
 THENCE in a westerly
direction along said common line and said tangent curve to the right whose chord bears North 76° 05’ 47” West a distance of 187.50 feet, having a radius of 370.00 feet, a central angle of 29° 21’ 18” and an arc length of
189.57 feet to a 1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner at the end of said tangent curve to the right, from which a found 1/2” iron rod bears North 23° 42’ 41” East a distance of 0.76
feet; 
 THENCE South 28° 34’ 51” West along said common line, passing at a distance of 50.00 feet the most
easterly common corner between said Lots 9 and 10, continuing along the common line between said Lots 3 and 10 a total distance of 100.00 feet to a chiseled “X” set in concrete for corner at the beginning of a non-tangent curve to the
left, said “X” being a common corner between said Lot 10 and Lot 1, Block A, said Second Replat of Palisades Central; 

THENCE in a southwesterly direction along the common line between said Lots 10 and 1 and along said non-tangent curve to the left whose
chord bears South 08° 33’ 46” West a distance of 81.12 feet, having a radius of 250.00 feet, a central angle of 18° 40’ 24” and an arc length of 81.48 feet to a PK nail found for corner at the end of said non-tangent
curve to the left; 
 THENCE South 00° 46’ 26” East along said common line a distance of 230.31 feet to a chiseled
“X” found for corner in the north line of said Palisades Boulevard, said “X” being the southerly common corner between said Lots 10 and 1; 
 THENCE South 89° 13’ 34” West along the common line between said Lot 10 and said Palisades Boulevard a distance of 531.00 feet to the POINT OF BEGINNING, containing 1,711,569 square feet or
39.2922 acres, more or less. 

  
 19 

 Tract 2:  (Fee Simple) 

Being a tract of land situated in the John J. Vance Survey, Abstract No. 1513, City of Richardson, Dallas County, Texas, and the
John V. Vance Survey, Abstract No. 942, City of Richardson, Collin County, Texas, and being all of Lot 2, Block A, of Second Replat Palisades Central, an addition to the City of Richardson, Dallas and Collin Counties, Texas, according to the
plat recorded in Volume 85164, Page 2204, Deed Records, Dallas County, Texas, and Cabinet F, Slides 268-269, Plat Records, Collin County, Texas, and being more particularly described as follows: 

BEGINNING at a
 1/2” iron rod with yellow plastic cap stamped
“RLG INC” set for corner in the westerly line of U.S. Highway No. 75 (a variable width right-of-way), said rod being the easterly common corner between said Lot 2 and Lot 3, Block A, of said Second Replat Palisades Central, said rod
being in a curve to the right; 
 THENCE in a southwesterly direction along the common line between
said Lot 2 and said U.S. Highway No. 75, and along said curve to the right whose chord bears South 18° 26’ 11” West a distance of 339.60 feet, having a radius of 5579.65 feet, a central angle of 03° 29’ 16”, and an
arc length of 339.65 feet to a  1/2” iron rod
with yellow plastic cap stamped “RLG INC” set for corner and the end of said curve to the right; 
 THENCE South 20° 10’ 49” West along said common line a distance of 60.35 feet to a  1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE South 89° 10’ 49” West along said common line a distance of 9.71 feet to a  1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner, said rod being at the beginning of a non-tangent curve to the right;

 THENCE in a southwesterly direction along said common line and along said non-tangent curve to the
right whose chord bears South 17° 48’ 55” West a distance of 175.80 feet, having a radius of 5574.65 feet, a central angle of 01° 48’ 25”, and an arc length of 175.81 feet to a  1/2” iron rod with yellow plastic cap stamped “RLG INC”
set for corner, said rod being the easterly common corner between said Lot 2 and Lot 1, Block A, of said Second Replat Palisades Central; 
 THENCE South 89° 13’ 34” West along the common line between said Lots 2 and 1 a distance of 335.40 feet to an iron rod with cap stamped “KNA” found for corner in the easterly line
of said Lot 3, said rod being the westerly common corner between said Lots 2 and 1, and being in a non-tangent curve to the left; 
 THENCE in a northeasterly direction along the common line between said Lots 2 and 3, and along said non-tangent curve to the left whose chord bears North 26° 23’ 51” East a distance of
524.32 feet, having a radius of 1150.00 feet, a central angle of 26° 21’ 16”, and an arc length of 528.97 feet to a
 1/2” iron rod with yellow plastic cap stamped
“RLG INC” set for corner and the end of said non-tangent curve to the left; 

  
 20 

 THENCE North 13° 13’ 14” East along said common line a
distance of 152.52 feet to a  1/2” iron rod
with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE North 59° 57’
23” East along said common line a distance of 13.71 feet to a  1/2” iron rod with yellow plastic cap stamped “RLG INC” set for corner; 
 THENCE South 73° 18’ 27” East along said common line a distance of 258.10 feet to the POINT OF BEGINNING and containing 163,284 square feet or 3.7485 acres, more or less. 

Tract 3:  (Easement Estate) 
 Being a non-exclusive easement for vehicular and pedestrian ingress, egress and regress over, across, through and along private roads described in Reciprocal Easement Agreement executed by and between
Carter-Crowley Properties, Inc., a Texas corporation and Home Interiors & Gifts, Inc., a Texas corporation, dated effective as of 10/15/93, filed 11/05/93, recorded in Volume 93217, Page 3015, Deed Records of Dallas County, Texas. (Also
recorded in CC#93-0097019, Land Records, Collin County, Texas.) Said private roads are shown as Roads A, B, C, E and F on plats recorded in Volume 85054, Page 4060, Map Records of Dallas County, Texas and Volume E, Pages 8 and 9, Map Records of
Collin County, Texas, SAVE AND EXCEPT those portions thereof abandoned by Replat recorded in Volume 2001015, Page 4931, Map Records, Dallas County, Texas, and recorded in Volume M, Page 418, Map Records of Collin County, Texas. 

Tract 4:  (Easement Estate) 
 Being a non-exclusive easement for vehicular and pedestrian ingress and egress described in Reciprocal Easement Agreement executed by and between Crescent Real Estate Equities Limited Partnership, a
Delaware limited partnership, and Crescent Real Estate Funding VIII, L.P., dated December 5, 2000, filed July 27, 2001, recorded in/under Volume 2001146, Page 2107 of the Real Property Records of Dallas County, Texas, and recorded in/under
Volume 4969, Page 769 of the Real Property Records of Collin County, Texas. 

  
 21 

 EXHIBIT C 

BUSINESS PLAN 
 See Attached. 

			
	 Richardson Office Portfolio
	 	November 3, 2011
	 Operating Plan
	 	

 The Richardson Office Portfolio is composed of five (5) office buildings and approximately 40 acres
of excess land located in the Telecom Corridor, along North Central Expressway in Richardson, Texas. 
 The portfolio is being
acquired for approximately $45 million; which in better days, with better occupancy, feasible entitlements, and an optimistic perception of the asset’s future would be a $90 to $100 million portfolio. In summary, our operating plan aspires to
achieve such results by implementing a 4-year strategy geared towards optimizing the investment’s Internal Rate of Return. 
 Step 1 - Create Positive Energy: Of late the portfolio had experienced a trend of increasing vacancy. In part, this was attributable to macroeconomics; but also to the perception of a sponsorship
deficient in capital and of waning enthusiasm. 
 Accordingly, our first step is to address
the matter of “perception”, by implementing smart marketing, tenant and public relations initiatives, and by allocating significant investment to high-profile, cost effective capital improvements1. 

In effect, this first step will create momentum by allocating capital and human resources to those areas where we can
make the best impression on tenants, tenant brokers, government agencies, and the community as a whole. 

Step 2 - Building the perfect Rent Roll: From such a foundation of positive energy, our emphasis will turn to the
future, when in CY 2015, we anticipate a prospective buyer will underwrite our rent roll (which we will custom design for this future purpose). By staggering lease maturation, as well as balancing tenant types and industry groupings, our rent roll
will be geared to achieve the best possible exit given a 4-year hold. 
 In practice, there are two places we
can find the tenants necessary to succeed. The obvious place is the market (by soliciting new businesses to the property), but more important is successful stewardship of existing occupants, whose companies we can support with expansions, renewals,
and other accommodations. This is critical because even as we hope to attract new tenants to the property the cost of keeping our existing portfolio is our best use of time and capital. 

For the solicitation of new tenants we will implement direct-marketing to individual companies through onsite salaried
leasing agents and by collaborating with and supporting the commercial brokerage community to present our properties to their clients. This will be achieved by onsite 

 

1 Preliminary budgets will provide for approximately 89% hard costs, 6% in marking and leasing soft costs, and 5% in
predevelopment soft costs. 

 functions, networking, and direct mailings. But latently, we intend to
garner broker attention by week-to-week progress notifications, the sharing of our leasing successes, and occupancy momentum. We hope this draws favorable attention to the portfolio, while keeping the brokerage community subconsciously connected to
the project. This is a subtle, but important means intended to keep our buildings at the top of the leasing community’s minds. 
 Step 3: Using the Land: The excess land is a lucky advantage to the portfolio, capable of serving two separate and important functions: (i) as a proposed site for the relocation and
construction of a new corporate headquarter facility and (ii) as a development site for a mixed-use residential, lodging, restaurant and retail facility geared towards servicing the portfolio and enhancing the experience of our owners, their
employees and invitees. 
 The proposed build-to-suit and relocation site will become an integral part of the
portfolio’s positioning plan and marketing strategy. This will allow us to present our portfolio not only as five (5) existing buildings but also as a place for new ideas, new possibilities, and new opportunities. This marketing tactic
will be used to direct-market ourselves to rapidly expanding global communications and technology companies worldwide, while in turn keeping us top-of-mind among the tenant representation and broker community. This may lead to a major corporate
relocation, or simply to new tenants for existing vacancies, but either way we anticipate a sense of excitement which will fuel the success of our overall portfolio. 

Also, the remaining (approximate 80%) of land will be re-entitled to accommodate other uses of a mixed use project geared
towards supporting the core office portfolio. We will attempt to organize a separate development group to construct a walkable, urban project composed of attainable housing, resident lodging, retail stores, restaurants, and service commercial. This
mixed use project will seek municipal and state funding for the construction of pedestrian links between the Palisades land and Community Transit Center, and other economic subsidies and incentives intended to support the financial feasibility of
the project. 
 As a whole, the guiding principal of the land plan will be to foster independent,
financially-feasible projects that support the underlying value and sustainability of the portfolio and our 4-year exit strategy. 
 In conclusion, by implementing these marketing, leasing, and land use strategies, together with top-class institutional styled property management and our own diligent efforts, we believe we can maximize
profit to obtain our desired financial results. 

 EXHIBIT D 

ANNUAL BUDGETS 
 See Attached. 

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 

 

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 

 
  

 EXHIBIT E 

MANAGEMENT AGREEMENT  
 See Attached. 

 REAL ESTATE PROPERTY MANAGEMENT AGREEMENT 

This Agreement is made as of November     , 2011 between JP-Palisades I, LLC
(“Owner”) and Sooner National Property Management, L.P. (“Manager”), with reference to the following facts: 
 A.         Owner is the owner of, or is contemplating the acquisition of, the land and improvements located at 2425 North Central Expressway, Richardson, Texas
75082 (the “Premises”). 
 B.         Manager represents that
it is in the business of managing properties similar to the Premises and possesses the skills and experience necessary for the efficient first class management of the Premises. 

Now, Therefore, Owner and Manager agree as follows: 

ARTICLE I 

BASIC TERMS 
 1.1         Effective Date:  Manager’s appointment under Article III shall become effective as of November 5, 2011 the (“Effective
Date”), except that if this Agreement is executed by Owner in anticipation of acquiring the Premises, the Effective Date shall be the date of such acquisition and Owner shall be under no obligation to Manager unless Owner acquires the Premises.

 1.2         Term:  The term of this Agreement is
one year from the Effective Date, and shall be deemed renewed for successive periods of three (3) years, subject at all times to the rights of termination set forth in Section 10.1. 

1.3         Role of Owner’s
Representative:        JP-Richardson, LLC (“Owner’s Representative”) is the duly authorized representative of Owner for the purpose of this Agreement and all powers and rights of Owner under
this Agreement shall be exercised by Owner’s Representative and all communications, remittances and things of any kind required to be delivered to Owner shall be delivered to Owner’s Representative. 

1.4         Limit on Amount Authorized For Non-Emergency Purchase and Repairs
and Contact Amount Requiring Owner Approval.  The limit on the amount Manager may incur for non-emergency purchases or repairs under Section 5.4 is $5,000. Owner’s prior written approval is required under Section 5.5(b)
of any contract for more than $10,000. 
 1.5         Bank:
Manager shall designate Frost National Bank (the “Bank”) in which the rents and other revenues from the premises shall be deposited pursuant to Section 5.10, subject to Owner’s written approval. The account or accounts shall be
named as follows: JP-Palisades I, LLC, (the “Bank Account”). The Owner may designate a different bank or a different account name at any time. 
 1.6         Manager’s Bond or Commercial Crime Insurance Policy. Owner has approved the following bond or Commercial Crime Insurance Policy
furnished by Manager pursuant to Section 5.16. 
      Form:
                                         
            
      Insurer:
                                         
         
      Amount:
                                         
       
      Expiration Date:
                                   

  
 1 

 1.7        Address of
Owner’s Representative. Unless changed by notice to Manager, the address of Owner’s Representative for notices under Section 11.2 shall be: 
     JP-Palisades I, LLC 
     14801 Quorum
Drive, Suite 200 
     Dallas, Texas 75254 

1.8        Address of Manager. Unless changed by notice to Owner, the
address of Manager for notices under Section 11.2 shall be. 
     Sooner National Property
Management, L.P. 
     14801 Quorum Drive, Suite 200 

    Dallas, Texas 75254 
 1.9        Management Fee.    Subject to Article IX, the management fee payable to Manager for its services under this Agreement shall be
an amount per month equal to the greater of three percent (3%) of gross receipts, subject to the limitations contained in Article IX or $5,500.00. 
 1.10      ERISA Requirements. If Owner is an employee benefit plan or a trust formed as a part of an employee benefit plan as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974 check the following space:        . If the space is checked, the provisions of Exhibit B attached to this Agreement are made a part of this Agreement by
this reference. If the space is not checked Exhibit B shall not be applicable. 
 ARTICLE II 

INDEX OF DEFINED TERMS AND EXHIBITS 
  

			
	TERM	  	WHERE
DEFINED
	
    
	  	 
	
  Bank
	  	
                Sections 1.5

	
  Budget
	  	
                Section 6.1

	
  Effective Date
	  	
                Section 1.1

	
  Hazardous Wastes
	  	
                Section 5. 17

	
  Management Fee
	  	
                Sections 1.9 and 9.1

	
  Manager
	  	
                Introductory paragraph of Agreement

	
  Owner
	  	
                Introductory paragraph of Agreement

	
  Owner’s Representative
	  	
                Section 1.3

	
  Premises
	  	
                Recital A

  

					
	EXHIBIT	  	TITLE	  	REFERENCE
	    	  	 	  	 
	A	  	    Schedule of Employees	  	Section 5.3
	B	  	ERISA Requirements	  	  Section 1.10

  
 2 

 ARTICLE III 
 APPOINTMENT 
 Owner hereby appoints Manager as the manager
for the Premises as of the Effective Date, and hereby authorizes Manager to exercise such powers with respect to the Premises as may be necessary for the performance of Manager’s obligations under Article V. Manager hereby accepts such
appointment on the terms and conditions hereinafter set forth for the term specified in Section 1.2. Manager shall have no right or authority, express or implied, to commit or otherwise obligate Owner in any manner whatsoever, except to the
extent expressly provided in this Agreement. 
 ARTICLE IV 

LEASING 
 Manager shall not be responsible for leasing services for the Premises unless Manager enters into a separate leasing agreement with Owner. If Manager enters into a leasing agreement with Owner, a default
under that agreement shall automatically be a default under this Agreement. In the event the leasing agreement is terminated by reason of the default of Manager thereunder this Agreement shall terminate automatically without notice at the same time.
Regardless of whether Manager has entered into a leasing agreement with Owner, Manager agrees to use its best efforts to cooperate with any leasing agent appointed by Owner for the Premises. 

ARTICLE V 

DUTIES OF MANAGER 
 5.1        General Duties. 
   (a)        Manager, on behalf of Owner, shall use its best efforts in the management and operation of the Premises and shall comply with Owner’s
instructions as set forth herein or as may from time to time be provided by Owner to Manager. Manager shall perform its duties in a first-class, professional, diligent, careful and vigilant manner and shall manage, operate, repair, maintain and
service the Premises as a first-class facility. In connection therewith, Manager shall conduct the ordinary and usual business affairs of Owner relating to the Premises as provided in this Agreement and shall implement, or cause to be implemented,
the Owner’s decisions. Manager shall at all times conform to the policies and programs established by Owner and the scope of Manager’s authority shall be limited thereby. Manager shall afford Owner the full benefit of the judgment,
experience and advice of Manager and Manager’s organization with respect to the policies to be pursued in management, and the execution of its responsibilities in a diligent, careful and vigilant manner. In particular, Manager shall have the
duties and obligations set forth hereafter in this Article V. 

  (b)        Manager acknowledges receipt of certain books and records
with respect to the operation of the Premises, personal property on the Premises belonging to Owner, and all service contracts relating to the maintenance and operation of the Premises. Within 10 days after the Effective Date, Manager shall prepare
and deliver to Owner a complete list of all books and records of Owner held by Manager, a list of personal property and a list of all service contracts. 
 5.2        Utility and Service Contracts.  Manager shall negotiate contracts on behalf of Owner for gas, electricity, water, telephone, trash
collection, sewer, elevator service, janitorial service, security service and such other services as are currently being furnished to the Premises for terms of not 

  
 3 

 
greater than one year, unless otherwise approved by Owner in writing. All such service contracts shall be in the name of Owner and shall be terminable on 30-days notice or on the sale of the
Premises. 
 5.3       Employment of
Personnel.    All persons employed in connection with the operation and maintenance of the Premises shall either be employees of Manager or independent contractors and shall not be employees of Owner. Subject to reimbursement
pursuant to Section 8.2, Manager shall select, employ, pay, supervise, direct and discharge all employees necessary for the operation and maintenance of the Premises, and use reasonable care in the selection and supervision of such employees.
Manager will keep monthly time sheets bearing an explanation of the work performed by non-exempt employees, which time sheets shall be available for inspection by Owner. Manager shall be responsible for complying with all laws, regulations and
collective bargaining agreements affecting such employment. Manager will be and will continue throughout the term of this Agreement to be an Equal Opportunity Employer. Before employing anyone pursuant to this Section 5.3, Manager shall submit
to Owner, for approval by Owner, a list in the form of Exhibit A attached hereto, (which shall update any such list previously submitted) showing the number of employees and the wages Manager proposes to pay such employees. 

5.4       Maintenance. 

   (a)        Manager shall keep the Premises in a clean and
sightly condition and make all repairs, alterations, replacements and installations, do all decorating and landscaping, and purchase all supplies necessary for (i) the proper operation of the Premises, (ii) the fulfillment of Owner’s
obligations under any lease of space in the Premises, (iii) the fulfillment of Owner’s obligations under any mortgage encumbering the Premises, provided Owner gives Manager written notice of such mortgage obligations (iv) compliance
with covenants, conditions and restrictions affecting the Premises, provided Owner gives Manager written notice of such covenants, conditions and restrictions and (v) compliance with all governmental and standard insurance requirements,
provided Manager shall not make any purchase or order any work costing more than the limit on the amount authorized for non-emergency purchases and repairs set forth in Section 1.4 without Owner’s prior written approval, except in circumstances
reasonably deemed by Manager to be an emergency requiring immediate action for the protection of the Premises or tenants or other persons or to avoid the suspension of necessary services. Manager shall promptly notify Owner of the necessity for, the
nature of and the cost of such emergency repairs or compliance. If Owner shall require, Manager shall submit a list of contractors and subcontractors who are performing any work, repairs, alterations, replacements or services on the Premises under
Manager’s direction. All repairs, alterations and replacements shall be of at least equal quality and workmanship as the original work. 
    (b)        Manager shall obtain all necessary receipts, releases, waivers, discharges and assurances necessary to keep the Premises free of any
mechanics’, laborers’, materials suppliers’ or vendors’ liens in connection with the maintenance or operation of the Premises. All such documentation shall be in such form as required by Owner. 

5.5       Contracts with Third Parties. 

   (a)        Manager shall directly supervise and be responsible
for all independent contractors, suppliers and entities engaged in the operation, repair, maintenance and servicing of the Premises or in any other activity within the scope of this Agreement. Excluding service agreements referenced in an annual
budget approved by Owner, all of such contractors shall be subject to Owner’s prior written approval. Manager shall assure that any contractor performing work on the Premises maintains insurance satisfactory to Owner, including, but not limited
to, Workers’ Compensation Insurance (and, when required by law, compulsory Non-Occupational Disability Insurance) and insurance 

  
 4 

 against liability for injury to persons and property arising out of all such
contractor’s operations naming Manager, Owner and Owner’s Representative as additional insureds. Manager shall obtain certificates of insurance for all such insurance before the work begins. Manager shall furnish copies of the certificates
to Owner if requested by Owner. 
 (b)     Manager shall not execute, or otherwise
enter into or bind Owner with respect to any service contract or agreement for an amount more than $5,000 for equipment, supplies, services or any other item without obtaining three competitive written bids. Manager shall not enter into any contract
or agreement for more than the amount specified in Section 1.4 without Owner’s prior written approval. All contracts, agreements or other arrangements made pursuant to this Agreement shall be, unless otherwise required by Owner, in the
name of Owner and shall be terminable, without additional cost or penalty, on 30 days’ notice or less and upon Owner’s sale or transfer of the Premises. 

(c)      Owner requires that Manager, or a subaccounting manager, hold the designations of
SAS 70 Type II or SSAE 16 under Sarbanes-Oxley 404 at all times during the term of this Agreement. Since Manager does not currently hold such designations, Manager shall enter into an agreement with a third party entity that will provide those
responsibilities mandated by Sarbanes-Oxley 40 (as used herein, “Subaccounting Manager”), including those terms included in Section 6.2 (Reports) detailed below. The Subaccounting Manager and Owner’s agreement with the
Subaccounting Manager (or any replacements thereof or modifications thereto) shall be acceptable to Owner. As of the date of this Agreement, it is contemplated that PMRA will surve as the initial Subaccounting Manager for a flat monthly fee of
$1,365.65 per month. Owner agrees that at such time as the Manager shall hold the designation of SAS 70 Type II or SSAE 16 and has delivered Owner satisfactory evidence thereof, Manager may terminate the agreement with the Subaccounting Manager and
thereafter assume responsibility for the Reports detailed in Section 6.2 for the same monthly fee so long as Manager retains such designation. 
 5.6        Purchase of Supplies and Materials.  Manager shall purchase all equipment, tools, appliances, materials and supplies reasonably
necessary or desirable for the maintenance and operation of the Premises. All such purchases shall be subject to the prior review and written approval of Owner if such purchases are not included in the current Budget. Such purchases shall be used
solely in connection with the operation and maintenance of the Premises. In connection with the performance of its duties pursuant to this Section 5.6, Manager shall use its best efforts to qualify for any cash and trade discounts, refunds,
credits, concessions or other incentives. Unless otherwise agreed in writing by Owner and Manager, all such discounts, refunds, credits, concessions and other incentives received by Manager shall inure and belong to Owner, and shall be deposited in
the Bank Account when they are in the form of cash. If Owner is entitled to discounts from contractors and suppliers under any national or regional agreements, Manager shall avail itself of such national or regional agreements whenever possible.

 5.7        Contracts with Affiliated
Entities.  Manager shall not purchase materials, tools or supplies or contract for repair, construction or any other service for the Premises with a party in which Manager (or any subsidiary, affiliate or related entity) holds a
beneficial interest, unless approved by Owner (in its sole and absolute discretion.) 

5.8        Complaints and Notices. 

   (a)    anager shall handle promptly complaints and requests from tenants,
concessionaires and licensees and notify Owner of any major complaint made by a tenant, concessionaire or licensee. Manager shall notify Owner promptly of: (i) any notice received by Manager or known to Manager of violation of any governmental
requirements (and make recommendations regarding compliance therewith); (ii) any defect or unsafe condition in the Premises known to Manager; (iii) any notice received by Manager or known to Manager of violation of covenants, conditions
and restrictions affecting the Premises or noncompliance with loan documents affecting the Premises, if any; (iv) any fire, 

  
 5 

 accident or other casualty or damage to the Premises; (v) any condemnation proceedings,
rezoning or other governmental order, lawsuit or threat thereof involving the Premises; (vi) any violations relative to the leasing, use, repair and maintenance of the Premises under governmental laws, rules, regulations, ordinances or like
provisions; (vii) defaults under any leases or other agreements affecting the Premises; or (viii) any violation of any insurance requirement. Manager shall promptly deliver to Owner copies of any documentation in its possession relating to
such matters. Manager shall keep Owner reasonably informed of the status of the particular matter through the final resolution thereof. In the case of any fire or other damage to the Premises or violation or alleged violation of laws respecting
Hazardous Wastes, Manager shall immediately give telephonic notice thereof to Owner. Manager shall complete all necessary and customary loss reports in connection with any fire or other damage to the Premises. Manager shall retain in the records it
maintains for the Premises copies of all supporting documentation with reference to such notices. 

(b)      Manager shall promptly notify Owner and any insurance agent Owner may designate
of any personal injury or property damage occurring to or claimed by any tenant or third party on or with respect to the Premises. Manager shall promptly forward to Owner with copies to any insurance agent Owner may designate any summons, subpoena
or other legal document served upon Manager relating to the actual or alleged potential liability of Owner, of Manager or of the Premises. 
 (c)      Should any claim, demand, suit or other legal proceeding be made or instituted by any third party against Owner which arises out of any matters relating to the
Premises, this Agreement or Manager’s performance hereunder, Manager shall give Owner all pertinent information, and reasonable assistance, in the defense or other disposition thereof. 

5.9        Tenant Insurance
Certificates.      Manager shall secure from all tenants the originals of all certificates of insurance and renewals thereof required to be furnished by the terms of their leases. Manager shall forward copies of the
certificates to Owner if requested by Owner. Manager shall establish systems and procedures to enforce lease requirements that such policies of insurance do not lapse and that all persons required to be named as additional insureds are listed
thereon. 
 5.10       Enforcement of Leases and Deposit of Revenue.

    (a)      Manager shall take all necessary and proper actions to enforce the
terms of all leases, concessions and licenses and to receive and collect all rents, including percentage rents, and all other revenues payable to Owner from the Premises as the same become due and payable. Manager shall deposit the rents and other
revenues promptly in the Bank Account. The Bank Account shall be used exclusively for such funds. Owner may supply Manager with written instructions to notify promptly third parties of such deposits, to enable transfer of Owner’s monies to
other bank accounts. The Bank Account shall be opened by Manager and shall name as signatories employees of Manager approved in writing by Owner and such other persons as Owner may designate in writing. All withdrawals from the Bank Account shall
require two signatures. At Owner’s option, the Bank Account may be comprised of two accounts, a checking account in which the funds on deposit shall be kept to the minimum practicable to pay day to day expenses and a money market account or
other interest bearing account. Manager shall receive and collect all tenant security deposits payable to Owner by tenants of the Premises and deposit the same promptly in the Bank Account. To the extent tenants are entitled to interest on such
security deposits or a refund of such deposits upon vacating the Premises, Manager shall pay such interest and/or refund such deposits from the Bank Account to the tenants entitled thereto. In the event state law requires that tenant security
deposits be held in a separate account, such separate account shall be established by Owner. Checks drawn to refund security deposits to tenants shall be drawn only upon the signatures of an authorized employee of the Manager and Owner’s
Representative. Manager shall cooperate with Owner to satisfy such conditions as Owner may place on the release of a security deposit from the Bank Account. Manager shall maintain detailed records of all security deposits and allow Owner and its
designees access to such records. Manager shall also assist with obtaining from tenants any estoppel or other certificates 

  
 6 

 
requested by the Owner, including, without limitation, Manager’s preparation, distribution, and retrieval of the estoppels and certifications. 

(b)        Upon prior notice and written approval of Owner, Manager shall
institute on Owner’s behalf and defend, at Owner’s expense, through legal counsel approved by Owner all necessary legal proceedings to: (i) collect rent or other income from tenants, concessionaires and licensees on the Premises;
(ii) oust or dispossess any tenants or other persons from the Premises; and (iii) address any other matters requiring legal attention. Owner reserves the right to change the approved counsel to be used by Manager and to otherwise control
litigation of any character affecting or arising out of the operation of the Premises. 

5.11      Compliance with Laws and Other Requirements. 

(a)  Manager shall supervise compliance of the Premises with all applicable laws, ordinances, rules,
regulations, requirements and orders of all federal, state and municipal governments, courts, departments, commissions, boards and offices, any national or local Board of Fire Underwriters or Insurance Services offices having jurisdiction, or any
body exercising functions similar to those of any of the foregoing which may be applicable to the Premises and the operations and management thereof. 
 (b)  Manager shall obtain a copy of all of Owner’s insurance policies and comply or supervise compliance with the provisions of any insurance policy or policies insuring Owner in relation
to the Premises (so as not to decrease the insurance coverage or increase the insurance premiums). 

(c)  Manager shall be responsible for performance by Owner under all leases of space in the Premises and any
other lease, sublease, license agreement, easement agreement, covenant, condition, restriction, document of record, use permit, development agreement, operating agreement or other similar document governing or applicable to the title, operation,
management, occupancy, promotion and leasing of the Premises known to Manager. 

5.12      Property Review, Tax Review and Other Programs. 

(a)  Manager shall participate in Owner’s property review programs to the extent requested by Owner. Such
review shall include asset, investment, financial and strategy profiles in form and substance satisfactory to Owner and such assistance as Owner may request in connection with appraisals of the Premises. Manager shall respond, within 10 days, to
Owner’s management evaluation reports concerning actions to be taken by Manager to correct or modify its management standards for the operations or financial services provided for the Premises. 

(b)        Manager shall participate in Owner’s tax review program. Manager
shall check tax assessments and assist Owner, when requested by Owner, in efforts to reduce such taxes. Manager shall promptly furnish Owner with copies of all assessment notices and receipted tax bills. 

(c)        Manager shall comply with Owner’s energy conservation and
Hazardous Wastes policies, as communicated by Owner to Manager, and submit energy consumption and Hazardous Wastes reports for the Premises in accordance with Owner’s program for energy and Hazardous Wastes audits and reviews. 

5.13       Permits and Authorizations. 

(a)  Manager shall obtain and keep in full force and effect all licenses, permits, consents and authorizations
as may be necessary for the maintenance, operation, management, repair, servicing or occupancy of the Premises. All or any of such licenses, permits, consents and authorizations shall be in the name of Owner, if requested in writing by Owner.

  
 7 

 (b)   Manager shall obtain and keep in full force and effect all
licenses, permits, consents and authorizations as may be necessary for the proper performance by Manager of its duties and obligations under this Agreement (including, without limitation, qualification to do business) or as may be required under any
lease covering any portion of the Premises. All such licenses, permits, consents and authorizations shall be in the name of Manager. 
 5.14       Other Duties. Manager shall, at Owner’s expense, perform all other services which are necessary and appropriate to manage, operate and maintain the
Premises. 
 5.15       Confidentiality.  Manager and all
persons retained or employed by Manager in performing its services shall hold in confidence and not use or disclose to others any confidential or proprietary information of Owner heretofore or hereafter disclosed to Manager, including but not
limited to any data, information, plans, programs, processes, costs, operations or tenants which may become known to Manager in the performance of, or as a result of, its services, except where Owner specifically authorizes Manager to disclose any
of the foregoing to others or such disclosure reasonably results from the performance of Manager’s duties hereunder, or such disclosure is required by law. 

5.16       Manager’s Bond and Insurance. 

(a)        Manager shall bond all of its employees who may handle or be
responsible for monies or other property of Owner or shall obtain a Commercial Crime Insurance Policy covering the activities of such employees. The bond or Commercial Crime Insurance Policy shall be in such form and amount and shall be issued by
such insurer, as Owner shall approve. The form, amount and insurer initially approved by Owner are set forth in Section 1.6. Manager shall maintain the bond or Commercial Crime Insurance Policy in such amount or in an amount equal to three
times the monthly rent roll for the Premises, including the projected rent for vacant space, whichever is greater. Such bond or Commercial Crime Insurance Policy shall contain a loss payee endorsement in favor of Owner as it relates to the Premises.
Manager shall furnish a copy of an insurance certificate evidencing such bond or Commercial Crime Insurance Policy with loss payee endorsement in favor of Owner to Owner prior to the Effective Date and thereafter immediately upon renewing or
replacing such bond or Commercial Crime Insurance Policy. 

(b)        Manager shall maintain the following insurance in Manager’s name
applicable to Manager’s activities under this Agreement: 
 (i)  Broad Form
Commercial General Liability Insurance, in an amount not less than $1,000,000, combined single limit. 
 (ii)  Automobile Liability Insurance, covering both owned and non-owned vehicles, in an amount not less than $1,000,000, combined single limit. 

(iii)  Workers Compensation Insurance, as required by law covering all Manager’s
employees (and, when required by law, compulsory Non-Occupational Disability Insurance). 
 Such insurance shall be underwritten
by reputable, financially sound companies. Manager shall furnish Owner with certificates of insurance evidencing such insurance prior to the Effective Date and thereafter upon renewing or replacing such insurance. Any such bond or insurance required
under this Section 5.16 shall provide that it may not be cancelled or modified unless thirty (30) days prior written notice of such cancellation or modification has been provided to Owner, except in the case of nonpayment of premiums, in
which case the notice period shall be ten (10) days. 

  
 8 

 (c)        Owner shall cause
Manager to be covered as an additional insured under Owner’s Commercial General Liability Insurance covering the Premises. Owner’s Commercial General Liability Insurance shall be primary over any other commercial general liability
insurance Manager is required to carry under this Agreement. 
 5.17      
Hazardous Wastes. 
 (a)        Manager shall not place, cause
or knowingly permit to be placed on the Premises, other than in the ordinary course of performing its obligations under this Agreement and in compliance with applicable law, any hazardous or toxic wastes or substances, as such terms are defined by
federal, state or municipal statutes or regulations promulgated thereunder (collectively, “Hazardous Wastes”). If Manager discovers the existence of any Hazardous Wastes on the Premises, Manager shall immediately notify Owner. If such
Hazardous Wastes were placed or knowingly permitted to be placed on the Premises by Manager, Manager shall, at its cost, diligently arrange for and complete the immediate removal thereof in accordance with applicable laws and Owner’s
directions. Except as expressly provided herein to the contrary, Manager shall not be responsible for any Hazardous Wastes present on the Premises prior to the Effective Date hereof, unless deposited thereon by Manager, nor shall Manager be
responsible for any Hazardous Wastes brought onto the Premises by a person other than Manager, its agents or employees. Manager shall immediately notify Owner of any notice received by Manager from any governmental authority of any actual or
threatened violation of any applicable laws, regulations or ordinances governing the use, storage or disposal of any Hazardous Wastes and shall cooperate with Owner in responding to such notice and correcting or contesting any alleged violation at
Owner’s expense. 
 (b)        Manager shall provide its
employees, agents, consultants, governmental entities and the public with any notices or disclosures concerning Hazardous Wastes associated with the Premises required to be delivered by Owner or Manager under any applicable laws, including without
limitation, any notices or disclosures concerning Hazardous Waste which Manager has received from Owner. Owner shall have the right to review such notices and disclosures before their distribution or submission by Manager and shall have the right,
but not the obligation, to prescribe the form and content of any such notices or disclosures as long as the form and content prescribed by Owner comply with all applicable laws relating to such notices or disclosures. Owner shall provide Manager
with any notices or disclosures concerning Hazardous Waste associated with the Premises required to be delivered by Owner under any applicable laws. 
 (c)        Without limiting any other indemnification obligations provided by law or specified in this Agreement, Manager shall indemnify, defend (at Manager’s
sole cost and expense and with legal counsel approved by Owner which approval shall not be unreasonably withheld) and hold harmless Owner, its agents, employees and contractors from and against any and all claims, demands, losses, damage,
disbursements, liabilities, obligations, fines, penalties, actions, causes of action, suits, costs and expenses, including without limitation, reasonable attorneys’ fees and costs, and all other professionals’ or consultants’ expenses
incurred in investigating, preparing for, serving as a witness in, or defending any action or proceeding, whether actually commenced or threatened, or in removing or remediating any Hazardous Wastes on, under, from or about the Premises, arising out
of or relating to, directly or indirectly, Manager’s breach of any of the terms of Section 5.17. This indemnity shall survive termination of this Agreement. 

5.18       Asbestos and Similar Compliance Matters.  If the Premises are
subject to the Occupational Safety and Health Administration’s regulations relating to asbestos, or to any state law or regulation relating to asbestos (such as California’s Connelley Act) or to any state law or regulation relating to
carcinogenic or toxic chemicals (such as California’s Proposition 65), Manager shall, at Owner’s expense, comply with such laws and regulations as they relate to the Premises. 

5.19       Insurance Coverage.  If requested in writing by Owner, with
respect to the Premises, Manager shall cause to be placed and kept in force all forms of insurance required by law or needed to protect Owner adequately, including but not limited to, public liability insurance, fire and extended coverage

  
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insurance, burglary and theft insurance, and boiler insurance. All such insurance shall be placed with such companies, in such amounts and with such beneficial interest appearing therein, as
shall be specified by Owner, including Manager as an additional insured. Should Owner elect to place such insurance coverage directly, Owner shall provide Manager with a duplicate copy of the original policy and, if requested by Owner, Manager shall
duly and punctually pay on behalf of Owner all premiums with respect thereto, before the policy’s lapse due to nonpayment. 

ARTICLE VI 

BUDGETS, REPORTS, AND OTHER FINANCIAL MATTERS 

6.1        Budgets and Business Plans. 

   (a)        Manager shall prepare and submit to Owner a
proposed operating and capital budget (the “Budget”) for the operation, repair and maintenance of the Premises for the remainder of the calendar year in which the Effective Date occurs, no later than 60 days after the Effective Date.
Thereafter, on or before the date specified each year by Owner (but not later than October 31), Manager shall prepare and submit to Owner an updated draft Budget for the remainder of the current calendar year and a preliminary Budget for the
next calendar year followed by a final Budget for the next calendar year, incorporating any changes requested by Owner, such Budgets shall: (i) be prepared on a cash and/or accrual basis, as directed by Owner, and (ii) show a month by
month projection of income, expenses, capital expenditures and reserves. Manager agrees to use its diligent efforts to ensure that the actual cost of operating the Premises shall not exceed the approved Budget. After written approval of each such
Budget by Owner, Manager shall implement the Budget and use its best efforts to ensure that the actual cost of operating the Premises shall not exceed the approved Budget. 

   (b)        Manager shall provide Owner each year with a draft
of a business plan for the Premises, on or before the date specified by Owner (but no later than October 31), containing such information as Owner may reasonably request, including (i) a list of all properties competitive with the
Premises, a list of the tenants of each and all other reasonably available information respecting each, and (ii) basic demographic data relating to the market area of the Premises, including population growth, major employers, employment and
unemployment levels and, if the Premises is a retail property, retail sales and housing starts. 

6.2        Reports. 

   (a)        Manager and/or Subaccounting Manager shall, during
the Term of this Agreement, deliver the following reports to Owner relating to the management and operation of the Premises in form and substance determined by Owner: 

   (i)        Monthly Cash
Basis Financial Statements and Operating Results: As soon as practicable, and in any event by the 25th of each month, Manager shall deliver monthly cash basis financial statements, in such form as approved by Owner, which shall include, among other things, balance sheet, actual vs. budget monthly and
year-to-date net operating results, lease expiration report, rent roll, aging report, and security deposit ledger. See Exhibit B attached hereto for a complete listing of required reports. 

   (ii)        Monthly
Property Performance Report (“PPR”): As soon as practicable, and in any event by the
5th of the following month, Manager shall deliver monthly
PPR, in format provided by Owner, which will include, among other things, current and 

  
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prospective lease status reports and occupancy summaries, status of capital and leasing improvements, projected capital requirements, status of outstanding accounts receivable, explanation of
cash basis budget to actual variances on a year-to-date basis, and any other significant events/issues with respect to the Premises. 

(iii)       Monthly U.S. GAAP Financial
Statements:      As soon as practicable, and in any event within 5 working days of the
20th of each month, Manager shall deliver monthly accrual
basis financial statements prepared in accordance with US GAAP which shall include straightening of rent and maintenance of depreciation and amortization on both a GAAP, tax, and E&P basis. Such financial statements shall be prepared in
such form as approved by Owner, which shall include, among other things, balance sheet, 13 month income statement with year-to-date actual to budget comparison, depreciation and amortization schedule generated through BNA software, FAS13 schedules
generated through MRI software, and supporting schedules for significant balance sheet items such accounts payable accruals, property taxes, insurance, prepaid, and allowance for doubtful accounts. See Exhibit B attached hereto for GAAP Report Table
of Contents and Accrual Basis Report Checklist for a complete listing of required reports. Both the GAAP Report Table of Contents and Accrual Basis Report Checklist are required to be signed by both the preparer of the financial statements and their
supervisor as representation that the reports are accurate and complete. 

(iv)       Annual U.S. GAAP Financial
Statements:      As soon as practicable, and in any event within 5 working days of December 31st, Manager shall deliver annual accrual basis financial statements prepared in a manner and form consistent with item
(iii) above. In addition, Manager shall provide any information as required to complete the Owner’s Parent, KBS Strategic Opportunity REIT, annual audited financial statements and 10-K. 

(v)        Other information: From time to time, upon
Owner’s request, such other information with regard to Premises as may reasonably be requested. 

(b)       To ensure the reliability of all reports required by this section, Manager
shall on or before the 20th of each month, other than year-end, pay all charges, fees, bills and invoices which are normally and customarily incurred monthly in connection with the operation of the Premises and any other amounts which are payable
that month, provided that if any charges, fees, bills and invoices for that month cannot be paid by the 20th, Manager shall accrue such items. If due to extraordinary circumstances, Manager incurs any expense after the 15th day of the month which is
not reflected on the statements required by this section, Manager shall immediately notify Owner of said expense. At year-end, the same procedures would be applied but as of the last day of the year. 

6.3     Remittance of Funds to Owner.  No later than the 25th day of each
calendar month Manager shall remit to Owner all funds collected as part of Manager’s obligations hereunder in excess of (i) anticipated expenditures for the calendar month that Manager is authorized to make pursuant to the Budget,
(ii) any reserves approved by Owner and (iii) the Management Fee payable pursuant to Section 9.1. Owner shall have the right to require the transfer to Owner at any time of funds in the Bank Account considered by Owner to be in excess
of an amount reasonably required by Manager for disbursement and compensation purposes in connection with the operation and management of the Premises. 
 6.4     Records.  Manager agrees to keep proper records with respect to the management and operation of the Premises, and to retain those records for periods
specified by Owner. Books will be prepared and maintained utilizing the MRI accounting software within the KBS Netsource database, and Manager shall pay the associated setup and monthly costs relating thereto only to the extent such costs are

  
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not recoverable under leases or licenses of space in the Premises. Such books, records and accounts shall include, without limitation, vouchers, statements, receipted bills and invoices,
employment records, documents, notices, agreements, contracts, correspondence, leases, permits, licenses, authorizations, all collections and disbursements related to the Premises, the deposits to the Bank Account and other business and affairs of
the Premises within the responsibility of Manager pursuant to this Agreement. Owner shall have the right, during the Term of this Agreement, to inspect such records and audit the reports required by Section 6.2 during normal business hours upon
reasonable prior notice to Manager. All such records, data, information and documents shall at all times be the property of Owner and shall be delivered to Owner without demand upon termination of this Agreement. 

6.5        Duty of Care.  Manager shall exercise such control
over accounting and financial transactions as is reasonably required to protect Owner’s assets from loss or diminution due to error, negligence, recklessness, willful misconduct, fraud or criminal acts on the part of Manager or its agents,
contractors, subcontractors, associates or employees. Losses caused by such error or activity shall be borne by Manager, to the extent such losses are not paid to Owner pursuant to the bond required by Section 5.16. 

ARTICLE VII 
 INDEMNIFICATION 

7.1        Manager’s Indemnification.  Without limiting
any indemnity provided elsewhere in this Agreement, Manager shall indemnify, defend, protect and hold harmless Owner and Owner’s Representative and their officers, directors, partners, members and employees from and against all claims, losses
and liabilities (including all expenses and attorneys’ fees) resulting from property damage (including, but not limited to, damage to the property of Owner and its agents, contractors, subcontractors and employees), personal injury, death,
defamation or false arrest which arise out of (a) any breach of this Agreement by Manager or (b) the gross negligence, recklessness, willful misconduct, fraud or criminal acts of Manager, its employees, agents, contractors, subcontractors
or associates. 
 7.2        Owner’s
Indemnification.  Owner shall indemnify, defend, protect and hold harmless Manager and its officers, directors and employees from and against all claims, losses and liabilities (including all expenses and attorneys’ fees)
resulting from property damage (including, but not limited to, damage to the property of Manager and its agents and employees), personal injury, death, defamation or false arrest which arise out of (a) any breach of this Agreement by Owner or
(b) the gross negligence, recklessness, willful misconduct, fraud or criminal acts of Owner or its employees or agents. 
 7.3        Survival.  All indemnities contained in this Agreement shall survive the expiration or termination of this Agreement. 

7.4        Limitation on Indemnity.    It is
expressly understood and agreed that all indemnity provisions of this Article VII apply only to the extent a loss or other event is not covered by insurance required to be maintained by the Owner under Sections 5.16 and 5.19 of this Agreement.

 ARTICLE VIII 
 COSTS AND EXPENSES 

8.1        Costs and Expenses of Manager.  Except as otherwise
expressly provided herein, all costs and expenses incurred by or on behalf of Manager in performing its obligations hereunder shall be borne solely by Manager, including, without limitation, the following expenses or costs in connection with the
operation and management of the Premises: 

  
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 (a)        Cost of gross salary and
wages, payroll taxes, insurance, worker’s compensation, pension benefits and any other benefits of Manager’s supervisory and home and regional office personnel; 

(b)        General accounting and reporting services, as such services are
considered to be within the reasonable scope of Manager’s responsibilities to Owner; 

(c)        Cost of forms, stationery, ledgers and other supplies and equipment
used in Manager’s home office or regional home office; 

(d)        Cost or pro rata cost of telephone and general office expenses
incurred on the Premises by Manager for the operation and management of properties other than the Premises; 

(e)        Cost or pro rata cost of data-processing equipment, whether located
at the Premises or at Manager’s home or regional office; 

(f)        Cost or pro rata cost of data processing provided by computer service
companies; 
 (g)        Cost of all bonuses, incentive compensation,
profit sharing or any pay advances to employees employed by Manager in connection with the operation and management of the Premises, except for payments to individuals specifically approved in writing by Owner in advance; 

(h)        Cost of automobile purchases and/or rentals, unless the automobile is
being provided by Owner; 
 (i)        Costs attributable to claims,
losses and liabilities arising from (i) any breach of this Agreement by Manager or (ii) the gross negligence, recklessness, willful misconduct, fraud or criminal acts of Manager’s employees, agents, contractors, subcontractors or
associates; 
 (j)        Cost of comprehensive crime insurance
purchased by Manager for its own account; 
 (k)        Costs for
meals, travel and hotel accommodations for Manager’s home or regional office personnel who travel to and from the Premises, unless expressly authorized by Owner; and 

(l)        Cost of obtaining and maintaining such licenses, permits, consents
and authorizations as are required by Section 5.13 (b). 
 8.2    Reimbursement by
Owner.   The following expenses or costs incurred by or on behalf of Manager in connection with the operation and management of the Premises shall be reimbursable monthly by Owner by disbursement from the Bank Account to the extent
they are within the Budget or approved in writing by Owner and are supported by proper documentation from Manager: 
 (a)        Cost of salaries, fringe benefits (except as provided in Section (8.1 (g) ) and the employer’s portion of payroll taxes for all persons employed in
connection with the operation and maintenance of the Premises, incurred pursuant to Section 5.3 (minus the pro-rata portion of such costs allocable to any time spent by such employees on matters other than the Premises); 

(b)        Cost of Workers Compensation Insurance (and, when required by law,
compulsory Non-Occupational Disability Insurance) incurred pursuant to Section 5.3; and 

  
 13 

    (c)        Cost
of telephone, office supplies and similar items for any management office on the Premises authorized by Owner. 

8.3        Payment of Other Costs.  Excluding repair and
maintenance expenditures and capital costs exceeding the limit set forth in Section 1.4, Manager may make the expenditures set forth in the approved Budget. All other expenditures shall require Owner’s prior written approval.
Notwithstanding anything to the contrary in this Agreement, if Manager has been provided with notice of a pending sale, or negotiation for sale, of the Premises, Manager shall not be authorized to make any expenditures for repairs or capital
improvements without Owner’s prior written approval. 

8.4        Payment of Certain Charges Affecting the Premises. Manager
shall pay from the Bank Account all taxes, special assessments, ground rents, insurance premiums and mortgage payments affecting the Premises as they become due and before any delinquency date, except that Owner reserves the right, at its option, to
make any such payments directly, upon written notice to Manager. 

8.5        Insufficient Funds in Bank Account.  Manager shall
not be required to expend any of its own funds for disbursements chargeable to Owner. If there are insufficient funds in the Bank Account for a disbursement, Manager may, after notifying Owner of such insufficiency in writing, defer making any
disbursement until Owner has furnished the funds necessary for such disbursement. 

8.6        Nonpayment.  If Manager fails to make any payment
when required or fails to perform any act required under this Agreement, then Owner, after 10 days’ written notice to Manager (or, in the case of any emergency, without notice) and without waiving or releasing Manager from any of its
obligations hereunder, may (but shall not be required to) make such payment or perform such act. Owner shall have (in addition to any other right or remedy) the right to offset all costs and expenses incurred in exercising its rights under this
Section 8.6 against any sums due or to become due to Manager, including, without limitation, the Management Fee and any costs and expenses reimbursable by Owner pursuant to Section 8.2. 

ARTICLE IX 

COMPENSATION 
 9.1        Management Fee.      Owner shall pay Manager as compensation for the management services rendered hereunder a
management fee (the “Management Fee”) at the rate specified in Section 1.9. Such Management Fee shall be payable monthly in arrears, on the 15th day of each calendar month. Manager shall withdraw such Management Fee from the Bank
Account and shall account for it as required by Section 6.2. The Management Fee shall be payable only on rent actually collected. The term rent, as used in this Agreement, shall include minimum rent, percentage rent, rent escalations, common
area maintenance reimbursements, revenues for parking and real estate tax and insurance premium reimbursements. For the purpose of determining the Management Fee, unless specifically provided otherwise in Section 1.9, rent shall not include
(i) fire loss or other insurance proceeds, capital improvements, remodeling and tenant change costs (including any overhead factor payable by tenants), (ii) security deposits except for the portion applied to past due rent,
(iii) prepaid rents except for the portion applied to the then current month; (v) sums collected or paid for sales, excise or use taxes, or (vi) any amount paid for, or in connection with the termination of leases or other agreements
with tenants, except for terminations which Owner has requested Manager to negotiate. 

9.2        Owner-Occupied Space.  Manager shall not be entitled
to any Management Fee with respect to Owner occupied space in the Premises unless a Management Fee for such space is specifically provided for in Section 1.9. In no event shall Manager be entitled to any Management Fee for any space occupied or
used by it in the Premises. 

  
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 ARTICLE X 
 TERMINATION 

10.1        Termination. This Agreement shall terminate at the election
of: 
    (a)       Manager, upon 60
days’ written notice to Owner; 

   (b)       Owner, upon 30 days’ written notice
to Manager; 
    (c)       Owner, upon 5
days’ written notice to Manager, if any of the following events occurs: 

 (i)        the Premises are sold or transferred;

  (ii)       the Premises were acquired by Owner upon
foreclosure of a mortgage and are subsequently redeemed; 

 (iii)      Manager shall be in default in the performance of any of
the covenants or agreements contained herein, and such default shall continue for 5 days after written notice thereof from Owner to Manager specifying the particulars of such default; 

 (iv)     Manager commits any fraud or breach of trust, or makes any
material misrepresentation; 
  (v)      Manager files, or
there shall be filed against Manager, a petition in bankruptcy; 

 (vi)     Manager makes an assignment for the benefit of creditors;

  (vii)    Manager takes advantage of any insolvency law or act.

  (viii)   the Premises are damaged or destroyed and Owner decides not to
rebuild or restore the Premises; or 
  (ix)      a
substantial portion of the Premises is taken by condemnation or similar proceedings. 

10.2        Obligations Upon Termination. 

(a)        Upon termination of this Agreement for any reason, Manager shall
deliver the following to Owner on or before fifteen (15) days following the termination date: 
  (i)          A final accounting, reflecting the balance of income and expenses for the Premises as of the date of termination; 

 (ii)         Any monies due to Owner and any tenant
security deposits held by Manager with respect to the Premises; and 

 (iii)        All keys, property, supplies, records,
contracts, drawings, leases and correspondence, in existence at the time of termination and all other papers or documents 

  
 15 

 pertaining to the Premises (except that Manager may keep copies of such
documents as Manager is required by law to retain). All data, information and documents shall at all times be the property of Owner. 
 Manager shall remove all signs that it may have placed at the Premises containing its name and repair any resulting damage. 

(b)        Upon termination of this Agreement for any reason, Manager’s
right to withdraw funds from the Bank Account or any other account which contains funds collected in connection with the Premises shall terminate. 
 (c)        Within 30 days after termination of this Agreement, for reasons other than Manager’s default, Owner shall reimburse Manager for all expenses
incurred by Manager and properly reimbursable by Owner under Section 8.2 and pay all fees properly payable to Manager for services rendered up to the date of such termination. 

(d)        SAS 70 Type II or SSAE 16 Designation. Owner shall have the power to
terminate this Agreement upon thirty (30) days’ notice to Manager if the Subaccounting Manager is not designated as SAS 70 Type II or SSAE 16 (to the extent such designation is still then available) compliant by a certified public
accountant on or prior to December 1st of the calendar year for the year this agreement is Effective, and in such event no payment of a Termination Fee shall be due and owing to Manager. The Subaccounting Manager shall cause the SAS 70 Type II
report to be an unqualified report and shall cover at minimum a period from January through September on an annual basis and must be issued by December 1st of each calendar year. 

(e)        Security Access and Segregation of Duties. Manager will require the
Subaccounting Manager to perform an annual security access and segregation of duties audit by a certified public accountant on all of its employees who are given access to the Owner’s accounting system. The results of this audit must be
provided to the Owner by December 1st of each calendar year. Owner shall have the power to terminate this Agreement upon thirty (30) days’ notice to Manager if the audit is not completed. 

ARTICLE XI 

MISCELLANEOUS 
 11.1        Status of Manager.  It is the intention of the parties to create a relationship wherein Manager and Subaccounting Manager are
independent contractors in the management, operation and maintenance of the Premises, and Owner is the beneficiary of such management, operation and maintenance. Nothing herein contained shall be construed as creating the relationship of
employer-employee, principal-agent or establishing any partnership or joint venture arrangement between Owner and Manager. Manager shall afford Owner the full benefit of the judgment, experience and advice of Manager and Manager’s organization
with respect to the policies to be pursued in management, and the execution of its responsibilities in a diligent, careful and vigilant manner. 
 11.2        Notices.  Any statement, notice recommendation, request, demand, consent or approval under this Agreement must be in writing and
personally delivered or sent by overnight courier service, such as Federal Express or sent by United States, registered or certified mail, postage prepaid, return receipt requested, and shall be deemed to have been given upon the date of personal
delivery or the next business day following deposit with an overnight courier or delivery by the U.S. Postal Service (or refusal to accept delivery) as indicated in the return receipt, provided that in the case of communications sent by overnight
courier service or United States registered or certified mail, the communication is 

  
 16 

 addressed as set forth in Section 1.7 if sent to the Owner’s Representative and as
set forth in Section 1.8 if sent to Manager. Either party may, by written notice, designate a different address. 
 11.3        Ownership of Fixtures and Personal Property. Manager acknowledges that Owner owns all fixtures and personal property situated on or about the
Premises and used in or necessary for the operation, maintenance and occupancy of the Premises (including, without limitation, any personal property purchased by Manager pursuant to Section 5.6). 

11.4        Prohibited Activities. During the term of this Agreement
Manager shall not, unless previously approved in writing by Owner, : (i) accept any contract to obtain a subtenant for any space in the Premises, or (ii) accept any contract to negotiate the termination of any lease of space in the
Premises, or (iii) solicit any tenant to relocate from space in the Premises to any other location. 

11.5        Assignment.  This Agreement shall not be assignable
by Manager without the express prior written consent of Owner. 

11.6        Severability. Each provision of this Agreement is intended to
be severable. If any term or provision hereof or the application thereof to any entity or circumstance shall be determined by a court of competent jurisdiction to be illegal or unenforceable for any reason whatsoever, such term, provision or
application thereof shall be severed from this Agreement and shall not affect the validity of the remainder of this Agreement or the application of such term or provision to any other entity or circumstance. 

11.7        Costs of Suit. If Owner or Manager shall institute any action
or proceeding against the other relating to this Agreement, the unsuccessful party shall reimburse the successful party for its disbursements incurred in connection therewith and for its reasonable attorneys’ fees, as fixed by the court.

 11.8        Waiver.  No consent or waiver, express
or implied, by either party to or of any breach or default by the other party in the performance of its obligations hereunder, shall be valid unless in writing. No such consent or waiver shall be deemed or construed to be a consent or waiver to or
of any other breach or default in the performance by such other party of any other obligations of such party hereunder. The failure of any party to declare the other party in default shall not constitute a waiver by such party of its rights
hereunder, irrespective of how long such failure continues. The granting of any consent or approval in any one instance by or on behalf of Owner shall not be construed to waive or limit the need for such consent in any other or subsequent instance.

 11.9        Remedies Cumulative. No remedy herein contained
or otherwise conferred upon or reserved to Owner shall be considered exclusive of any other remedy, but such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law, in equity or by
statute. Every power and remedy given by this Agreement to Owner may be exercised from time to time and as often as occasion may arise or as may be deemed expedient. 

11.10      Entire Agreement. This Agreement contains the entire agreement between
the parties and supersedes all prior oral or written agreements, understandings, representations and covenants, to the extent that they are inconsistent with this Agreement. 

11.11      Amendment. This Agreement may not be amended or modified except by an
agreement in writing signed by the party against whom enforcement of such change or modification is sought. 

11.12      Governing Law. This Agreement and the obligations of Owner and Manager
shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 

  
 17 

 11.13        Gifts. Manager
shall not accept any gift from vendors employed in connection with the Project, other than gratuities of nominal value received in the ordinary course of business. Manager shall not, on Owner’s behalf or in connection with the services being
rendered under this Agreement, provide any gift to or otherwise entertain any public official. The term “public official” means every member, officer, employee or consultant of a state or local agency. The term “gift,” as used
herein, includes any service or merchandise of any kind, discounts on merchandise or services, meals and any other item of value. Under no circumstance shall Owner be deemed to have waived the provisions of this Section as to a specific gift unless
the waiver is in writing and signed by two authorized officers of Owner. 

11.14        OFAC Representations, Warranties and Indemnification.

   (a)        Representations and Warranties. Owner
and Manager each represents and warrants that (i) it is not, and none of its partners, members, managers, employees, officers, directors, representatives or agents is, a person or entity with whom U.S. persons or entities are restricted from
doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order
(including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or under any other law, rule, order or regulation that is enforced or
administered by OFAC (such persons and entities each being a “Prohibited Person); (ii) it is not acting directly or indirectly for or on behalf of any Prohibited Person; (iii) it is not engaged in this transaction, directly or
indirectly, on behalf of, or instigating or facilitating this transaction, directly or indirectly, on behalf of any Prohibited Person; and (iv) it will not contract with or otherwise engage in any dealings or transactions or be otherwise
associated with any Prohibited Person. 

  (b)        Indemnification. Owner and Manager each hereby
agrees to defend, indemnify, and hold harmless Manager from and against any and all claims, damages, losses, risks, liabilities, and expenses (including attorney’s fees and costs arising from or related to any breach of the foregoing
representations and warranties by the indemnifying party. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above written. 
  

									
	 OWNER:
	 	 JP-Palisades I, LLC, a Texas limited liability company

			
		 	 By:
	 	 JP-KBS Richardson Holdings, LLC,

Its Sole Member

				
		 		 	 By:
	 	 JP-RICHARDSON, LLC, its Managing Member

					
		 		 		 	 By:
	  	
                             
             

		 		 		 		  	 Mark D. Jordan, Manager

  
 18 

									
		  	 MANAGER:
	  	 Sooner National Property Management, L.P.

				
		  		  	 By:
	  	 Sooner National Property Management GP, LLC, General Partner

					
		  		  		  	 By:
	 	  

		  		  		  		 	Sarah Catherine Norris,
					
		  		  	 Date:
	  		 	  

  
 19 

 EXHIBIT A 
 SCHEDULE OF EMPLOYEES 
  

			
	 Rodman Jordan
	  	 Senior Property Manager- $85,000 per year with annual bonus

	 Leigh Fitzgerald
	  	 Senior Property Manager $83,000 per year with annual bonus

	 Cindy Karnes
	  	 Property Manager- $80,000 per year per year with annual bonus

	 Wes Mitchell
	  	 Engineer- $21.00 per hour with annual bonus

	 Steve Wilson
	  	 Engineer- $50,000 per year per year with annual bonus

	 Bill Knowles
	  	 Engineer- $22.00 per hour with annual bonus

 ***All employees are allocated per square foot to each of the 5 buildings and benefits are calculated at
20% on top of employees wages. 

 EXHIBIT B 
 ERISA REQUIREMENTS 
 This Exhibit B is attached to and
made a part of that certain Real Estate Management Agreement (the “Agreement”) dated as of                     , between
                    , (“Owner”) and
                     (“Manager”), only if the Owner as an employee benefit plan as that term is defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 
 Manager represents and
warrants that it is not (except by virtue of entering into this Agreement) a party in interest as that term is defined in Section 3(14) of ERISA as to Owner. The text of Section 3(14) is set forth below. Manager shall not knowingly employ,
enter into a contract with or purchase any goods for the Premises from any party in interest without Owner’s prior written approval. 
 Section 3(14) of ERISA reads as follows: 
 The term
“party in interest” means, as to an employee benefit plan — 

(A)       any fiduciary (including, but not limited to, any administrator, officer,
trustee, or custodian), counsel, or employee of such employee benefit plan; 

(B)       a person providing services to such plan; 

(C)       an employer any of whose employees are covered by such plan; 

(D)       an employee organization any of whose members are covered by such plan;

 (E)       an owner, direct or indirect, of 50 percent or more of —

  

	 	(i)	 the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation.

  

	 	(ii)	 the capital interest or the profits interest of a partnership, or, 

 

	 	(iii)	 the beneficial interest of a trust or unincorporated enterprise which is an employer or an employee organization described in subparagraph
(C) or (D); 

 (F)       a relative (as defined in
paragraph (15) of any individual described in subparagraph (A), (B), (C), or (E); 

(G)      a corporation, partnership, or trust or estate of which (or in which) 50 percent
or more of — 
  

	 	(i)	 the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation,

  

	 	(ii)	 the capital interest or profits interest of such partnership, or 

 

	 	(iii)	 the beneficial interest of such trust or estate, is owned directly or indirectly, or held by persons described in subparagraph (A), (B), (C), (D),
or (E); 

 (H)       an employee, officer, director
(or an individual having powers or responsibilities similar to those of officers or directors), or a 10 percent or more shareholder directly or indirectly, of a person described in subparagraph (B), (C), (D), (E), or (G), or of the employee benefit
plan; or 
 (I)       a 10 percent or more (directly or indirectly in
capital or profits) partner or joint venturer of a person described in subparagraphs (B), (C), (D), (E), or (G). 
 The Secretary, after consultation and coordination with the Secretary of the Treasury, may by regulation prescribe a percentage lower than 50 percent for subparagraphs (E) and (G) and lower than
10 percent for subparagraphs (H) or (I). The Secretary may prescribe regulations for determining the ownership (direct or indirect) of profits and beneficial interests, and the manner in which indirect stockholdings are taken into account. Any
person who is a party in interest with respect to a plan to which a trust described in section 501(c)(22) of the Internal Revenue Code of 1954 is permitted to make payments under Section 4223 shall be treated as a party in interest with respect
to such trust. 
 Section 3(15) of ERISA (referred to in Paragraph F, Section 3(14) reads as follows:

 The term “relative” means a spouse, ancestor, lineal descendant, or spouse of a lineal descendant.

 EXHIBIT F 

LEASING AGREEMENT 
 [To be attached post-closing in a form reasonably acceptable by the parties.] 

 EXHIBIT G 
 SCHEDULE OF SOURCES AND USES OF FUNDS 

			
	  
 Sources
  
	  	 
	  

Initial Advance

 
	  	$29,525,000
	  

Holdback - TI/LC

 
	  	$11,575,000
	  

Holdback - CapEx/Interest

 
	  	$5,000,000
	  

Total Commitment

 
	  	$46,600,000
	  

Borrower Equity

 
	  	$16,331,137
	  

Total Sources:

 
	  	$62,931,137
	     
  
	  	 
	  

Uses

 
	  	 
	  

Acquisition Cost

 
	  	$44,500,000
	  

TI/LC Costs

 
	  	$11,575,000
	  

Capital Expenditures

 
	  	$4,500,000
	  

Interest Shortfalls

 
	  	$500,000
	  

GE Fee
  
	  	$925,000
	  

Closing Costs

 
	  	$931,137
	  

Total Uses:

 
	  	$62,931,137

 EXHIBIT H 

LEASING GUIDELINES 

 LEASING GUIDELINES 
 Greenway I, II, III 
  

			
	 Initial Rate:
	  	 Not less than $14.00 psf per year.

		
	 Premises:
	  	 Not more than 10,000 rentable square feet.

		
	 Recoveries:
	  	 Pro rata over a base year stop plus a direct recovery of electric. A subsequent year’s expense stop will be allowed for any lease transacted beyond the
third quarter of the current year.

		
	 Term:
	  	 Not less than 3 years, not more than 10 years.

		
	 Free Rent:
	  	 Not more than one month for every year of Term.

		
	 Improvements:
	  	 Not more than $25 per rentable square foot.

		
	 Commissions:
	  	 Not more than 6.75% of base rent.

 Palisades I and II 
  

			
	 Initial Rate:
	  	 Not less than $15.00 psf per year.

		
	 Premises:
	  	 Not more than 10,000 rentable square feet.

		
	 Recoveries:
	  	 Pro rata over a base year stop plus a direct recovery of electric. A subsequent year’s expense stop will be allowed for any lease transacted beyond the
third quarter of the current year.

		
	 Term:
	  	 Not less than 3 years, not more than 10 years.

		
	 Free Rent:
	  	 Not more than one month for every year of Term.

		
	 Improvements:
	  	 Not more than $25 per rentable square foot.

		
	 Commissions:
	  	 Not more than 6.75% of base rent.

 LIMITED LIABILITY COMPANY AGREEMENT 

OF JP-KBS RICHARDSON HOLDINGS, LLC 
  

 

THIS AGREEMENT HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, 15
U.S.C. § 15b ET SEQ., AS AMENDED (THE “FEDERAL ACT”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE FEDERAL ACT. IN ADDITION, THE ISSUANCE OF THIS SECURITY HAS NOT BEEN QUALIFIED
UNDER THE DELAWARE SECURITIES ACT, THE [TEXAS/DELAWARE] CORPORATE SECURITIES LAW OF 1968 OR ANY OTHER STATE SECURITIES LAWS (COLLECTIVELY, THE “STATE ACTS”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE
REGISTRATION PROVISIONS OF THE STATE ACTS. IT IS UNLAWFUL TO CONSUMMATE A SALE OR OTHER TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN TO, OR TO RECEIVE ANY CONSIDERATION THEREFOR FROM, ANY PERSON OR ENTITY WITHOUT THE OPINION OF COUNSEL FOR THE
COMPANY THAT THE PROPOSED SALE OR OTHER TRANSFER OF THIS SECURITY DOES NOT AFFECT THE AVAILABILITY TO THE COMPANY OF SUCH EXEMPTIONS FROM REGISTRATION AND QUALIFICATION, AND THAT SUCH PROPOSED SALE OR OTHER TRANSFER IS IN COMPLIANCE WITH ALL
APPLICABLE STATE AND FEDERAL SECURITIES LAWS. THE TRANSFER OF THIS SECURITY IS FURTHER RESTRICTED UNDER THE TERMS OF THE LIMITED LIABILITY COMPANY AGREEMENT GOVERNING THE COMPANY, A COPY OF WHICH IS ON FILE WITH THE COMPANY. 

 TABLE OF CONTENTS 

 

							
	 Article I FORMATION
	  	 	i	  
	       1.01.
	    	 Formation
	  	 	i	  
	       1.02.
	    	 Names and Addresses
	  	 	i	  
	       1.03.
	    	 Nature of Business
	  	 	i	  
	       1.04.
	    	 Term of Company
	  	 	ii	  
		
	 Article II MANAGEMENT OF THE COMPANY
	  	 	ii	  
	       2.01.
	    	 Management of the Company
	  	 	ii	  
	       2.02.
	    	 Major Decisions
	  	 	v	  
	       2.03.
	    	 Company Funds
	  	 	viii	  
	       2.04.
	    	 Employees
	  	 	viii	  
	       2.05.
	    	 Insurance
	  	 	ix	  
	       2.06.
	    	 Election, Removal, Resignation
	  	 	ix	  
	       2.07.
	    	 Members Have No Managerial Authority
	  	 	xi	  
	       2.08.
	    	 Meetings
	  	 	xi	  
	       2.09.
	    	 Liability and Indemnity
	  	 	xi	  
	       2.10.
	    	 Business Plan and Annual Budgets
	  	 	xi	  
	       2.11.
	    	 Management and Leasing Agreements
	  	 	xiii	  
	       2.12.
	    	 Reimbursement and Fees
	  	 	xiii	  
	       2.13.
	    	 Limited Liability
	  	 	xiv	  
		
	 Article III MEMBERS’ CONTRIBUTIONS TO COMPANY
	  	 	xiv	  
	       3.01.
	    	 Initial Capital Commitments
	  	 	xiv	  
	       3.02.
	    	 Additional Capital Commitments
	  	 	xiv	  
	       3.03.
	    	 Default in Capital Commitment
	  	 	xv	  
	       3.04.
	    	 Member Loans
	  	 	xvii	  
	       3.05.
	    	 Determination of IRR Returns
	  	 	xviii	  
	       3.06.
	    	 Capital Contributions in General
	  	 	xviii	  
		
	 Article IV ALLOCATION OF PROFITS AND LOSSES
	  	 	xix	  
	       4.01.
	    	 In General
	  	 	xix	  
	       4.02.
	    	 Special Allocations
	  	 	xix	  
	       4.03.
	    	 Differing Tax Basis; Tax Allocation
	  	 	xx	  
		
	 Article V DISTRIBUTION OF CASH FLOW
	  	 	xxi	  
	       5.01.
	    	 Distribution of Net Cash Prior to Removal of JV Member
	  	 	xxi	  
	       5.02.
	    	 Distribution of Net Cash After Removal of the JV Member
	  	 	xxi	  
	       5.03.
	    	 Limitation on Distributions
	  	 	xxii	  
	       5.04.
	    	 In-Kind Distribution
	  	 	xxii	  
	       5.05.
	    	 Tax Distributions
	  	 	xxii	  
	       5.06.
	    	 Credit to Assigned Distributions
	  	 	xxii	  
		
	 Article VI RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS
	  	 	xxii	  
	       6.01.
	    	 Limitations on Transfer
	  	 	xxii	  
	       6.02.
	    	 Permitted Transfers
	  	 	xxiii	  

							
	       6.03.
	    	 Admission of Substituted Members
	  	 	xxiv	  
	       6.04.
	    	 Election; Allocations Between Transferor and Transferee
	  	 	xxiv	  
	       6.05.
	    	 Waiver of Withdrawal and Purchase Rights
	  	 	xxiv	  
		
	 Article VII KBS’s RIGHT TO CAUSE SALE OF THE PROJECTS
	  	 	xxiv	  
	       7.01.
	    	 KBS’s Right to Sell the Projects
	  	 	xxv	  
		
	 Article VIII DISSOLUTION AND WINDING UP OF THE COMPANY
	  	 	xxvi	  
	       8.01.
	    	 Events Causing Dissolution of the Company
	  	 	xxvi	  
	       8.02.
	    	 Winding Up of the Company
	  	 	xxvi	  
	       8.03.
	    	 Negative Capital Account Restoration
	  	 	xxvi	  
		
	 Article IX BOOKS AND RECORDS
	  	 	xxvii	  
	       9.01.
	    	 Books of Account and Bank Accounts
	  	 	xxvii	  
	       9.02.
	    	 Tax Returns
	  	 	xxvii	  
		
	 Article X MISCELLANEOUS
	  	 	xxviii	  
	       10.01.
	    	 Notices
	  	 	xxviii	  
	       10.02.
	    	 Construction of Agreement
	  	 	xxviii	  
	       10.03.
	    	 Partnership Intended Solely for Tax Purposes
	  	 	xxix	  
	       10.04.
	    	 Investment Representations
	  	 	xxix	  
	       10.05.
	    	 Waiver of Conflict of Interest
	  	 	xxx	  
	       10.06.
	    	 Section 1031 Exchange
	  	 	xxxi	  
	       10.07.
	    	 Arbitration
	  	 	xxxi	  
	       10.08.
	    	 Outside Activities
	  	 	xxxii	  
	       10.09.
	    	 Limitation on Amendments
	  	 	xxxii	  
	       10.10.
	    	 No Third Party Beneficiaries
	  	 	xxxii	  
		
	 Article XI REIT PROTECTION
	  	 	xxxii	  
	       11.01.
	    	 Certain Definitions
	  	 	xxxii	  
	       11.02.
	    	 Prohibited Transactions
	  	 	xxxiii	  
		
	 Article XII SINGLE PURPOSE ENTITY
	  	 	xxxiv	  

 EXHIBITS: 
  

			
	 Exhibit A
	  	 NAMES AND ADDRESS, PERCENTAGE INTERESTS AND CAPITAL CONTRIBUTIONS OF THE MEMBERS

		
	 Exhibit B
	  	 LEGAL DESCRIPTION OF THE PROPERTY

		
	 Exhibit C
	  	 BUSINESS PLAN

		
	 Exhibit D
	  	 ANNUAL BUDGET

		
	 Exhibit E
	  	 FORM OF MANAGEMENT AGREEMENT

		
	 Exhibit F
	  	 FORM OF LEASING AGREEMENT

		
	 Exhibit G
	  	 SCHEDULE OF SOURCES AND USES OF FUNDS

		
	 Exhibit H
	  	 LEASING GUIDELINESMaster Repurchase Agreement

 Exhibit 10.25 

 

			
	

	  	 Master Repurchase Agreement

		  	September 1996 Version

  

			
	  Dated as of	  	December 12, 2011
	 	  	 
	  
  

  Between:
	  	WELLS FARGO SECURITIES, LLC
	 	  	 
	  
  

  and
	  	KBS SOR CMBS OWNER, LLC
	 	  	 

  

	1.	Applicability 

 From time
to time the parties hereto may enter into transactions in which one party (“Seller”) agrees to transfer to the other (“Buyer”) securities or other assets (“Securities”) against the transfer of funds by Buyer, with a
simultaneous agreement by Buyer to transfer to Seller such Securities at a date certain or on demand, against the transfer of funds by Seller. Each such transaction shall be referred to herein as a “Transaction” and, unless otherwise
agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in Annex I hereto and in any other annexes identified herein or therein as applicable hereunder. 

 

	2.	Definitions 

	 	(a)	“Act of Insolvency”, with respect to any party, (i) the commencement by such party as debtor of any case or proceeding under any bankruptcy, insolvency,
reorganization, liquidation, moratorium, dissolution, delinquency or similar law, or such party seeking the appointment or election of a receiver, conservator, trustee, custodian or similar official for such party or any substantial part of its
property, or the convening of any meeting of creditors for purposes of commencing any such case or proceeding or seeking such an appointment or election, (ii) the commencement of any such case or proceeding against such party, or another
seeking such an appointment or election, or the filing against a party of an application for a protective decree under the provisions of the Securities Investor Protection Act of 1970, which (A) is consented to or not timely contested by such
party, (B) results in the entry of an order for relief, such an appointment or election, the issuance of such a protective decree or the entry of an order having a similar effect, or (C) is not dismissed within 15 days, (iii) the
making by such party of a general assignment for the benefit of creditors, or (iv) the admission in writing by such party of such party’s inability to pay such party’s debts as they become due; 

 

	 	(b)	“Additional Purchased Securities”, Securities provided by Seller to Buyer pursuant to Paragraph 4(a) hereof; 

	 	(c)	“Buyer’s Margin Amount”, with respect to any Transaction as of any date, the amount obtained by application of the Buyer’s Margin Percentage to the
Repurchase Price for such Transaction as of such date; 

  

	 	(d)	“Buyer’s Margin Percentage”, with respect to any Transaction as of any date, a percentage (which may be equal to the Seller’s Margin Percentage)
agreed to by Buyer and Seller or, in the absence of any such agreement, the percentage obtained by dividing the Market Value of the Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such Transaction;

  

	 	(e)	“Confirmation”, the meaning specified in Paragraph 3(b) hereof; 

 

	 	(f)	“Income”, with respect to any Security at any time, any principal thereof and all interest, dividends or other distributions thereon;

  

	 	(g)	“Margin Deficit”, the meaning specified in Paragraph 4(a) hereof; 

 

	 	(h)	“Margin Excess”, the meaning specified in Paragraph 4(b) hereof; 

 

	 	(i)	“Margin Notice Deadline”, the time agreed to by the parties in the relevant Confirmation, Annex I hereto or otherwise as the deadline for giving notice
requiring same-day satisfaction of margin maintenance obligations as provided in Paragraph 4 hereof (or, in the absence of any such agreement, the deadline for such purposes established in accordance with market practice); 

 

	 	(j)	“Market Value”, with respect to any Securities as of any date, the price for such Securities on such date obtained from a generally recognized source agreed
to by the parties or the most recent closing bid quotation from such a source, plus accrued Income to the extent not included therein (other than any Income credited or transferred to, or applied to the obligations of, Seller pursuant to Paragraph 5
hereof ) as of such date (unless contrary to market practice for such Securities); 

  

	 	(k)	“Price Differential”, with respect to any Transaction as of any date, the aggregate amount obtained by daily application of the Pricing Rate for such
Transaction to the Purchase Price for such Transaction on a 360 day per year basis for the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding) the date of
determination (reduced by any amount of such Price Differential previously paid by Seller to Buyer with respect to such Transaction); 

  

	 	(l)	“Pricing Rate”, the per annum percentage rate for determination of the Price Differential; 

 

	 	(m)	“Prime Rate”, the prime rate of U.S. commercial banks as published in The Wall Street Journal (or, if more than one such rate is published, the average of
such rates); 

  

	 	(n)	“Purchase Date”, the date on which Purchased Securities are to be transferred by Seller to Buyer; 

 

  
 2 • September 1996
• Master Repurchase Agreement 

	 	(o)	“Purchase Price”, (i) on the Purchase Date, the price at which Purchased Securities are transferred by Seller to Buyer, and (ii) thereafter, except
where Buyer and Seller agree otherwise, such price increased by the amount of any cash transferred by Buyer to Seller pursuant to Paragraph 4(b) hereof and decreased by the amount of any cash transferred by Seller to Buyer pursuant to Paragraph 4(a)
hereof or applied to reduce Seller’s obligations under clause (ii) of Paragraph 5 hereof; 

  

	 	(p)	“Purchased Securities”, the Securities transferred by Seller to Buyer in a Transaction hereunder, and any Securities substituted therefor in accordance with
Paragraph 9 hereof. The term “Purchased Securities” with respect to any Transaction at any time also shall include Additional Purchased Securities delivered pursuant to Paragraph 4(a) hereof and shall exclude Securities returned pursuant
to Paragraph 4(b) hereof; 

  

	 	(q)	“Repurchase Date”, the date on which Seller is to repurchase the Purchased Securities from Buyer, including any date determined by application of the
provisions of Paragraph 3(c) or 11 hereof; 

  

	 	(r)	“Repurchase Price”, the price at which Purchased Securities are to be transferred from Buyer to Seller upon termination of a Transaction, which will be
determined in each case (including Transactions terminable upon demand) as the sum of the Purchase Price and the Price Differential as of the date of such determination; 

 

	 	(s)	“Seller’s Margin Amount”, with respect to any Transaction as of any date, the amount obtained by application of the Seller’s Margin Percentage to
the Repurchase Price for such Transaction as of such date; 

  

	 	(t)	“Seller’s Margin Percentage”, with respect to any Transaction as of any date, a percentage (which may be equal to the Buyer’s Margin Percentage)
agreed to by Buyer and Seller or, in the absence of any such agreement, the percentage obtained by dividing the Market Value of the Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such Transaction.

  

	3.	Initiation; Confirmation; Termination 

	 	(a)	An agreement to enter into a Transaction may be made orally or in writing at the initiation of either Buyer or Seller. On the Purchase Date for the Transaction, the
Purchased Securities shall be transferred to Buyer or its agent against the transfer of the Purchase Price to an account of Seller. 

  

	 	(b)	Upon agreeing to enter into a Transaction hereunder, Buyer or Seller (or both), as shall be agreed, shall promptly deliver to the other party a written confirmation of
each Transaction (a “Confirmation”). The Confirmation shall describe the Purchased Securities (including CUSIP number, if any), identify Buyer and Seller and set forth (i) the Purchase Date, (ii) the Purchase Price,
(iii) the Repurchase Date, unless the Transaction is to be terminable on demand, (iv) the Pricing Rate or Repurchase Price applicable to the Transaction, and (v) any additional terms or conditions of the Transaction not inconsistent
with this Agreement. The Confirmation, together with this Agreement, shall constitute conclusive evidence of the terms agreed between Buyer and Seller with respect to the Transaction to which the Confirmation relates, unless

  
 3 •
September 1996 • Master Repurchase Agreement 

	 	
with respect to the Confirmation specific objection is made promptly after receipt thereof. In the event of any conflict between the terms of such Confirmation and this Agreement, this Agreement
shall prevail. 

  

	 	(c)	In the case of Transactions terminable upon demand, such demand shall be made by Buyer or Seller, no later than such time as is customary in accordance with market
practice, by telephone or otherwise on or prior to the business day on which such termination will be effective. On the date specified in such demand, or on the date fixed for termination in the case of Transactions having a fixed term, termination
of the Transaction will be effected by transfer to Seller or its agent of the Purchased Securities and any Income in respect thereof received by Buyer (and not previously credited or transferred to, or applied to the obligations of, Seller pursuant
to Paragraph 5 hereof ) against the transfer of the Repurchase Price to an account of Buyer. 

  

	4.	Margin Maintenance 

	 	(a)	If at any time the aggregate Market Value of all Purchased Securities subject to all Transactions in which a particular party hereto is acting as Buyer is less than the
aggregate Buyer’s Margin Amount for all such Transactions (a “Margin Deficit”), then Buyer may by notice to Seller require Seller in such Transactions, at Seller’s option, to transfer to Buyer cash or additional Securities
reasonably acceptable to Buyer (“Additional Purchased Securities”), so that the cash and aggregate Market Value of the Purchased Securities, including any such Additional Purchased Securities, will thereupon equal or exceed such aggregate
Buyer’s Margin Amount (decreased by the amount of any Margin Deficit as of such date arising from any Transactions in which such Buyer is acting as Seller). 

 

	 	(b)	If at any time the aggregate Market Value of all Purchased Securities subject to all Transactions in which a particular party hereto is acting as Seller exceeds the
aggregate Seller’s Margin Amount for all such Transactions at such time (a “Margin Excess”), then Seller may by notice to Buyer require Buyer in such Transactions, at Buyer’s option, to transfer cash or Purchased Securities to
Seller, so that the aggregate Market Value of the Purchased Securities, after deduction of any such cash or any Purchased Securities so transferred, will thereupon not exceed such aggregate Seller’s Margin Amount (increased by the amount of any
Margin Excess as of such date arising from any Transactions in which such Seller is acting as Buyer). 

  

	 	(c)	If any notice is given by Buyer or Seller under subparagraph (a) or (b) of this Paragraph at or before the Margin Notice Deadline on any business day, the
party receiving such notice shall transfer cash or Additional Purchased Securities as provided in such subparagraph no later than the close of business in the relevant market on such day. If any such notice is given after the Margin Notice Deadline,
the party receiving such notice shall transfer such cash or Securities no later than the close of business in the relevant market on the next business day following such notice. 

 

	 	(d)	Any cash transferred pursuant to this Paragraph shall be attributed to such Transactions as shall be agreed upon by Buyer and Seller. 

  
 4 • September 1996
• Master Repurchase Agreement 

	 	(e)	Seller and Buyer may agree, with respect to any or all Transactions hereunder, that the respective rights of Buyer or Seller (or both) under subparagraphs (a) and
(b) of this Paragraph may be exercised only where a Margin Deficit or Margin Excess, as the case may be, exceeds a specified dollar amount or a specified percentage of the Repurchase Prices for such Transactions (which amount or percentage
shall be agreed to by Buyer and Seller prior to entering into any such Transactions). 

  

	 	(f)	Seller and Buyer may agree, with respect to any or all Transactions hereunder, that the respective rights of Buyer and Seller under subparagraphs (a) and
(b) of this Paragraph to require the elimination of a Margin Deficit or a Margin Excess, as the case may be, may be exercised whenever such a Margin Deficit or Margin Excess exists with respect to any single Transaction hereunder (calculated
without regard to any other Transaction outstanding under this Agreement). 

  

	5.	Income Payments 

 Seller
shall be entitled to receive an amount equal to all Income paid or distributed on or in respect of the Securities that is not otherwise received by Seller, to the full extent it would be so entitled if the Securities had not been sold to Buyer.
Buyer shall, as the parties may agree with respect to any Transaction (or, in the absence of any such agreement, as Buyer shall reasonably determine in its discretion), on the date such Income is paid or distributed either (i) transfer to or
credit to the account of Seller such Income with respect to any Purchased Securities subject to such Transaction or (ii) with respect to Income paid in cash, apply the Income payment or payments to reduce the amount, if any, to be transferred
to Buyer by Seller upon termination of such Transaction. Buyer shall not be obligated to take any action pursuant to the preceding sentence (A) to the extent that such action would result in the creation of a Margin Deficit, unless prior
thereto or simultaneously therewith Seller transfers to Buyer cash or Additional Purchased Securities sufficient to eliminate such Margin Deficit, or (B) if an Event of Default with respect to Seller has occurred and is then continuing at the
time such Income is paid or distributed. 
  

	6.	Security Interest 

Although the parties intend that all Transactions hereunder be sales and purchases and not loans, in the event any such Transactions are
deemed to be loans, Seller shall be deemed to have pledged to Buyer as security for the performance by Seller of its obligations under each such Transaction, and shall be deemed to have granted to Buyer a security interest in, all of the Purchased
Securities with respect to all Transactions hereunder and all Income thereon and other proceeds thereof. 
  

	7.	Payment and Transfer 

Unless otherwise mutually agreed, all transfers of funds hereunder shall be in immediately available funds. All Securities transferred by
one party hereto to the other party (i) shall be in suitable form for transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank and such other documentation as the party receiving possession may reasonably
request, (ii) shall be transferred on the book-entry system of a Federal Reserve Bank, or (iii) shall be transferred by any other method mutually acceptable to Seller and Buyer. 

  
 5 •
September 1996 • Master Repurchase Agreement 

	8.	Segregation of Purchased Securities 

 To the extent required by applicable law, all Purchased Securities in the possession of Seller shall be segregated from other securities in its possession and shall be identified as subject to this
Agreement. Segregation may be accomplished by appropriate identification on the books and records of the holder, including a financial or securities intermediary or a clearing corporation. All of Seller’s interest in the Purchased Securities
shall pass to Buyer on the Purchase Date and, unless otherwise agreed by Buyer and Seller, nothing in this Agreement shall preclude Buyer from engaging in repurchase transactions with the Purchased Securities or otherwise selling, transferring,
pledging or hypothecating the Purchased Securities, but no such transaction shall relieve Buyer of its obligations to transfer Purchased Securities to Seller pursuant to Paragraph 3, 4 or 11 hereof, or of Buyer’s obligation to credit or pay
Income to, or apply Income to the obligations of, Seller pursuant to Paragraph 5 hereof. 
  

							
		 	 	 	  
 Required Disclosure for Transactions in Which the Seller
 Retains Custody of the
Purchased Securities
 Seller is not permitted to substitute other securities for those subject to this Agreement and therefore must keep
Buyer’s securities segregated at all times, unless in this Agreement Buyer grants Seller the right to substitute other securities. If Buyer grants the right to substitute, this means that Buyer’s securities will likely be commingled with
Seller’s own securities during the trading day. Buyer is advised that, during any trading day that Buyer’s securities are commingled with Seller’s securities, they [will]* [may]** be subject to liens granted by Seller to [its clearing
bank]* [third parties]** and may be used by Seller for deliveries on other securities transactions. Whenever the securities are commingled, Seller’s ability to resegregate substitute securities for Buyer will be subject to Seller’s ability
to satisfy [the clearing] *[any]** lien or to obtain substitute securities.
  

* Language to be used under 17 C.F.R. ß403.4(e) if Seller is a government securities broker or dealer other than a financial institution.

** Language to be used under 17 C.F.R. ß403.5(d) if Seller is a financial institution.

 
	 	 

  

	9.	Substitution 

	 	(a)	Seller may, subject to agreement with and acceptance by Buyer, substitute other Securities for any Purchased Securities. Such substitution shall be made by transfer to
Buyer of such other Securities and transfer to Seller of such Purchased Securities. After substitution, the substituted Securities shall be deemed to be Purchased Securities. 

 

	 	(b)	In Transactions in which Seller retains custody of Purchased Securities, the parties expressly agree that Buyer shall be deemed, for purposes of subparagraph
(a) of this Paragraph, to have agreed to and accepted in this Agreement substitution by Seller of other Securities for Purchased Securities; provided, however, that such other Securities shall have a Market Value at least equal to the Market
Value of the Purchased Securities for which they are substituted. 

  
 6 • September 1996
• Master Repurchase Agreement 

	10.	Representations 

 Each of
Buyer and Seller represents and warrants to the other that (i) it is duly authorized to execute and deliver this Agreement, to enter into Transactions contemplated hereunder and to perform its obligations hereunder and has taken all necessary
action to authorize such execution, delivery and performance, (ii) it will engage in such Transactions as principal (or, if agreed in writing, in the form of an annex hereto or otherwise, in advance of any Transaction by the other party hereto,
as agent for a disclosed principal), (iii) the person signing this Agreement on its behalf is duly authorized to do so on its behalf (or on behalf of any such disclosed principal), (iv) it has obtained all authorizations of any
governmental body required in connection with this Agreement and the Transactions hereunder and such authorizations are in full force and effect and (v) the execution, delivery and performance of this Agreement and the Transactions hereunder
will not violate any law, ordinance, charter, by-law or rule applicable to it or any agreement by which it is bound or by which any of its assets are affected. On the Purchase Date for any Transaction Buyer and Seller shall each be deemed to repeat
all the foregoing representations made by it. 
  

	11.	Events of Default 

 In the
event that (i) Seller fails to transfer or Buyer fails to purchase Purchased Securities upon the applicable Purchase Date, (ii) Seller fails to repurchase or Buyer fails to transfer Purchased Securities upon the applicable Repurchase Date,
(iii) Seller or Buyer fails to comply with Paragraph 4 hereof, (iv) Buyer fails, after one business day’s notice, to comply with Paragraph 5 hereof, (v) an Act of Insolvency occurs with respect to Seller or Buyer, (vi) any
representation made by Seller or Buyer shall have been incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated, or (vii) Seller or Buyer shall admit to the other its inability to, or its
intention not to, perform any of its obligations hereunder (each an “Event of Default”): 
  

	 	(a)	The nondefaulting party may, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency), declare an
Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of such option, the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (except that, in the event
that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled). The nondefaulting party shall (except upon the occurrence of an Act of
Insolvency) give notice to the defaulting party of the exercise of such option as promptly as practicable. 

  

	 	(b)	In all Transactions in which the defaulting party is acting as Seller, if the nondefaulting party exercises or is deemed to have exercised the option referred to in
subparagraph (a) of this Paragraph, (i) the defaulting party’s obligations in such Transactions to repurchase all Purchased Securities, at the Repurchase Price therefor on the Repurchase Date deter-mined in accordance with
subparagraph (a) of this Paragraph, shall thereupon become immediately due and payable, (ii) all Income paid after such exercise or deemed exercise shall be retained by the nondefaulting party and applied to the aggregate unpaid Repurchase
Prices and any other amounts owing by the defaulting party hereunder, and (iii) the defaulting party shall immediately deliver to the nondefaulting party any Purchased Securities subject to such Transactions then in the defaulting party’s
possession or control. 

  
 7 •
September 1996 • Master Repurchase Agreement 

	 	(c)	In all Transactions in which the defaulting party is acting as Buyer, upon tender by the nondefaulting party of payment of the aggregate Repurchase Prices for all such
Transactions, all right, title and interest in and entitlement to all Purchased Securities subject to such Transactions shall be deemed transferred to the nondefaulting party, and the defaulting party shall deliver all such Purchased Securities to
the nondefaulting party. 

  

	 	(d)	If the nondefaulting party exercises or is deemed to have exercised the option referred to in subparagraph (a) of this Paragraph, the nondefaulting party, without
prior notice to the defaulting party, may: 

  

			
	(i)	 	as to Transactions in which the defaulting party is acting as Seller, (A) immediately sell, in a recognized market (or otherwise in a commercially reasonable manner) at such
price or prices as the nondefaulting party may reasonably deem satisfactory, any or all Purchased Securities subject to such Transactions and apply the proceeds thereof to the aggregate unpaid Repurchase Prices and any other amounts owing by the
defaulting party hereunder or (B) in its sole discretion elect, in lieu of selling all or a portion of such Purchased Securities, to give the defaulting party credit for such Purchased Securities in an amount equal to the price therefor on such
date, obtained from a generally recognized source or the most recent closing bid quotation from such a source, against the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder; and
		
	(ii)	 	as to Transactions in which the defaulting party is acting as Buyer, (A) immediately purchase, in a recognized market (or otherwise in a commercially reasonable manner) at
such price or prices as the nondefaulting party may reasonably deem satisfactory, securities (“Replacement Securities”) of the same class and amount as any Purchased Securities that are not delivered by the defaulting party to the
nondefaulting party as required hereunder or (B) in its sole discretion elect, in lieu of purchasing Replacement Securities, to be deemed to have purchased Replacement Securities at the price therefor on such date, obtained from a generally
recognized source or the most recent closing offer quotation from such a source.

 Unless otherwise provided in Annex I, the parties acknowledge and agree that (1) the
Securities subject to any Transaction hereunder are instruments traded in a recognized market, (2) in the absence of a generally recognized source for prices or bid or offer quotations for any Security, the nondefaulting party may establish the
source therefor in its sole discretion and (3) all prices, bids and offers shall be determined together with accrued Income (except to the extent contrary to market practice with respect to the relevant Securities). 

 

	 	(e)	As to Transactions in which the defaulting party is acting as Buyer, the defaulting party shall be liable to the nondefaulting party for any excess of the price paid
(or deemed paid) by the nondefaulting party for Replacement Securities over the Repurchase Price for the Purchased Securities replaced thereby and for any amounts payable by the defaulting party under Paragraph 5 hereof or otherwise hereunder.

  

	 	(f)	 For purposes of this Paragraph 11, the Repurchase Price for each Transaction hereunder in respect of which the defaulting party is acting as Buyer
shall not 

  
 8 • September 1996
• Master Repurchase Agreement 

	 	
increase above the amount of such Repurchase Price for such Transaction determined as of the date of the exercise or deemed exercise by the nondefaulting party of the option referred to in
sub-paragraph (a) of this Paragraph. 

  

	 	(g)	The defaulting party shall be liable to the nondefaulting party for (i) the amount of all reasonable legal or other expenses incurred by the nondefaulting party in
connection with or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including all fees, expenses and commissions) of entering into replacement transactions and entering into or terminating hedge transactions in
connection with or as a result of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising or resulting from the occurrence of an Event of Default in respect of a Transaction. 

 

	 	(h)	To the extent permitted by applicable law, the defaulting party shall be liable to the non-defaulting party for interest on any amounts owing by the defaulting party
hereunder, from the date the defaulting party becomes liable for such amounts hereunder until such amounts are (i) paid in full by the defaulting party or (ii) satisfied in full by the exercise of the nondefaulting party’s rights
hereunder. Interest on any sum payable by the defaulting party to the nondefaulting party under this Paragraph 11(h) shall be at a rate equal to the greater of the Pricing Rate for the relevant Transaction or the Prime Rate.

  

	 	(i)	The nondefaulting party shall have, in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law.

  

	12.	Single Agreement 

 Buyer
and Seller acknowledge that, and have entered hereinto and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder constitute a single business and contractual relationship and
have been made in consideration of each other. Accordingly, each of Buyer and Seller agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall
constitute a default by it in respect of all Transactions hereunder, (ii) that each of them shall be entitled to set off claims and apply property held by them in respect of any Transaction against obligations owing to them in respect of any
other Transactions hereunder and (iii) that payments, deliveries and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect
of any other Transactions hereunder, and the obligations to make any such payments, deliveries and other transfers may be applied against each other and netted. 
  

	13.	Notices and Other Communications 

 Any and all notices, statements, demands or other communications hereunder may be given by a party to the other by mail, facsimile, telegraph, messenger or otherwise to the address specified in Annex II
hereto, or so sent to such party at any other place specified in a notice of change of address hereafter received by the other. All notices, demands and requests hereunder may be made orally, to be confirmed promptly in writing, or by other
communication as specified in the preceding sentence. 

  
 9 •
September 1996 • Master Repurchase Agreement 

	14.	Entire Agreement; Severability 

 This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions. Each provision and agreement herein shall be treated as
separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement. 

 

	15.	Non-assignability; Termination 

	 	(a)	The rights and obligations of the parties under this Agreement and under any Transaction shall not be assigned by either party without the prior written consent of the
other party, and any such assignment without the prior written consent of the other party shall be null and void. Subject to the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to the benefit of the parties and
their respective successors and assigns. This Agreement may be terminated by either party upon giving written notice to the other, except that this Agreement shall, notwithstanding such notice, remain applicable to any Transactions then outstanding.

  

	 	(b)	Subparagraph (a) of this Paragraph 15 shall not preclude a party from assigning, charging or otherwise dealing with all or any part of its interest in any sum
payable to it under Paragraph 11 hereof. 

  

	16.	Governing Law 

 This
Agreement shall be governed by the laws of the State of New York without giving effect to the conflict of law principles thereof. 
  

	17.	No Waivers, Etc. 

 No
express or implied waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy
hereunder. No modification or waiver of any provision of this Agreement and no consent by any party to a departure here-from shall be effective unless and until such shall be in writing and duly executed by both of the parties hereto. Without
limitation on any of the foregoing, the failure to give a notice pursuant to Paragraph 4(a) or 4(b) hereof will not constitute a waiver of any right to do so at a later date. 

 

	18.	Use of Employee Plan Assets 

	 	(a)	If assets of an employee benefit plan subject to any provision of the Employee Retirement Income Security Act of 1974 (“ERISA”) are intended to be used by
either party hereto (the “Plan Party”) in a Transaction, the Plan Party shall so notify the other party prior to the Transaction. The Plan Party shall represent in writing to the other party that the Transaction does not constitute a
prohibited transaction under ERISA or is otherwise exempt therefrom, and the other party may proceed in reliance thereon but shall not be required so to proceed. 

  
 10 • September 1996
• Master Repurchase Agreement 

	 	(b)	Subject to the last sentence of subparagraph (a) of this Paragraph, any such Transaction shall proceed only if Seller furnishes or has furnished to Buyer its most
recent available audited statement of its financial condition and its most recent subsequent unaudited statement of its financial condition. 

  

	 	(c)	By entering into a Transaction pursuant to this Paragraph, Seller shall be deemed (i) to represent to Buyer that since the date of Seller’s latest such
financial statements, there has been no material adverse change in Seller’s financial condition which Seller has not disclosed to Buyer, and (ii) to agree to provide Buyer with future audited and unaudited statements of its financial
condition as they are issued, so long as it is a Seller in any out-standing Transaction involving a Plan Party. 

  

	19.	Intent 

	 	(a)	The parties recognize that each Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11 of the United States Code, as
amended (except insofar as the type of Securities subject to such Transaction or the term of such Transaction would render such definition inapplicable), and a “securities contract” as that term is defined in Section 741 of Title 11
of the United States Code, as amended (except insofar as the type of assets subject to such Transaction would render such definition inapplicable). 

  

	 	(b)	It is understood that either party’s right to liquidate Securities delivered to it in connection with Transactions hereunder or to exercise any other remedies
pursuant to Paragraph 11 hereof is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of Title 11 of the United States Code, as amended. 

 

	 	(c)	The parties agree and acknowledge that if a party hereto is an “insured depository insti-tution,” as such term is defined in the Federal Deposit Insurance
Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified financial contract,” as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject to
such Transaction would render such definition inapplicable). 

  

	 	(d)	It is understood that this Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation under any Transaction hereunder shall constitute a “covered contractual payment entitlement” or “covered contractual payment
obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is not a “financial institution” as that term is defined in FDICIA). 

 

	20.	Disclosure Relating to Certain Federal Protections 

 The parties acknowledge that they have been advised that: 
  

	 	(a)	in the case of Transactions in which one of the parties is a broker or dealer registered with the Securities and Exchange Commission (“SEC”) under
Section 15 of the Securities Exchange Act of 1934 (“1934 Act”), the Securities Investor Protection 

  
 11 •
September 1996 • Master Repurchase Agreement 

	 	
Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 (“SIPA”) do not protect the other party with respect to any Transaction
hereunder; 

  

	 	(b)	in the case of Transactions in which one of the parties is a government securities broker or a government securities dealer registered with the SEC under
Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction hereunder; and 

  

	 	(c)	in the case of Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant to a Transaction hereunder are not
a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable. 

  

					
	WELLS FARGO SECURITIES, LLC	 		  	KBS SOR CMBS OWNER, LLC
			
	By: /s/ Authorized Signatory	 		  	 By: /s/ Authorized Signatory
	Name: Authorized Signatory	 		  	Name: Authorized Signatory
	Title:
                                    	 		  	Title:
                                    

 KBS SOR CMBS OWNER, LLC, 
 a Delaware limited liability company 
 By: KBS SOR ACQUISITION X, LLC, 

  a Delaware limited liability company, its sole member 

  By: KBS SOR PROPERTIES, LLC, 
     a Delaware limited liability company, its sole member 

    By: KBS STRATEGIC OPPORTUNITY LIMITED PARTNERSHIP, 

  a Delaware limited partnership, its sole member 
   By: KBS STRATEGIC OPPORTUNITY REIT, INC., 
     a
Maryland corporation, its sole general partner 
     By: /s/ David E. Snyder 

     David E. Snyder, 
      Chief Financial Officer 

    Date: December 12, 2011

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