Document:

Mortgage (related to the financing of the Cardinal Health Building)

 Exhibit 10.75 
 PREPARED BY: 
 Heller Ehrman LLP 
 333 Bush St.

 San Francisco, CA 94104 
 Mark Appelbaum 
 RECORDING REQUESTED BY 
 AND WHEN RECORDED MAIL TO: 

WELLS FARGO BANK, NATIONAL ASSOCIATION 
 Real Estate Group (AU #2955)

 2030 Main Street, Suite 800 
 Irvine, CA 92614 
 Attn: Rhonda Friedly 
 Loan No. 105154 
 Assessors Parcel Number: 31-120-21-34-0006 
  

 THIS MORTGAGE SECURES A NOTE WHICH PROVIDES FOR A VARIABLE INTEREST RATE 
 NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, ENFORCEMENT OF THIS MORTGAGE IS LIMITED TO A DEBT AMOUNT OF $11,500,000 UNDER CHAPTER 287 OF MINNESOTA STATUTES. 
 MORTGAGE 
 WITH ABSOLUTE ASSIGNMENT
OF LEASES AND RENTS, 
 SECURITY AGREEMENT AND FIXTURE FILING 
 THIS MORTGAGE WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (“Mortgage”), made as of November 7, 2007, is executed by KBS INDUSTRIAL PORTFOLIO, LLC, a Delaware
limited liability company (“Mortgagor”), having an address of c/o KBS Capital Advisors, LLC, 620 Newport Center Drive, Suite 1300, Newport Beach, CA 92660, to and for the benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION
(“Mortgagee”), having an address of 2030 Main Street, Suite 800, Irvine, CA 92614 . 
 ARTICLE 1. GRANT 
  

	 	1.1	 GRANT. For the purposes of and upon the terms and conditions in this Mortgage, Mortgagor irrevocably grants, conveys and assigns to Mortgagee, with
power of sale and right of entry and possession, all of that real property located in the City of Champlin, County of Hennepin, State of Minnesota described on Exhibit A attached hereto, together with all right, title, interest, and
privileges of Mortgagor in and to all streets, ways, roads, and alleys used in connection with or pertaining to such real property and any improvements thereon, all development rights or credits, air rights, water, water rights and water stock
related to the real property, all timber, and all minerals, oil and gas, and other hydrocarbon substances in, on or under the real property, and all licenses, appurtenances, reversions, remainders, easements, rights and rights of way appurtenant or
related thereto; any and all rights of Mortgagor, as a declarant, under any covenants, conditions, and restrictions now or hereafter pertaining to the real property described on Exhibit A, hereto, provided, however, that
Mortgagee shall have no liability under such covenants, conditions, and restrictions unless and until Mortgagee forecloses on the real property; all buildings, other improvements and fixtures now or hereafter located on the real property, including,
but not limited to, all apparatus, equipment, and appliances used in the operation or occupancy of the real property, it being intended by the parties that all such items 

	 	 
shall be conclusively considered to be a part of the real property, whether or not attached or affixed to the real property (the “Improvements”);
all interest or estate which Mortgagor may hereafter acquire in the property described above, and all additions and accretions thereto, and the proceeds of any of the foregoing; (all of the foregoing being collectively referred to as the
“Subject Property”). The listing of specific rights or property shall not be interpreted as a limit of general terms. 

  

	 	1.2	ADDRESS. The address of the Subject Property is: 9000 109th Avenue, Champlin, Minnesota 55316. However, neither the failure to designate an address nor any inaccuracy
in the address designated shall affect the validity or priority of the lien of this Mortgage on the Subject Property as described on Exhibit A. 

 ARTICLE 2. OBLIGATIONS SECURED 
  

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

 

	 	(a)	Payment to Mortgagee of all sums at any time owing under that certain Promissory Note (“Note”) of even date herewith, in the principal amount of Six Million, Nine Hundred
Thousand Dollars ($6,900,000) executed by Mortgagor, as Mortgagor (“Mortgagor”), and payable to the order of Mortgagee, as Mortgagee, which is due on November 9, 2008; and 

  

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

  

	 	(c)	Payment and performance of all covenants and obligations on the part of Mortgagor under that certain Loan Agreement (Non-Revolving) (“Loan Agreement”) of even date
herewith by and between Mortgagor and Mortgagee, as Mortgagee, the Hazardous Materials Indemnity Agreement, and all other “Loan Documents” as defined in the Loan Agreement ; and 

  

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

  

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

  

	 	(f)	Payment and performance of all covenants and obligations of Mortgagor under any interest rate swap agreement, or other interest rate hedge agreement of any type executed by and
between Mortgagor and Mortgagee, which agreement is evidenced by a writing that recites it is secured by this Mortgage; and 

  

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

  

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

  

	 	2.3	 INCORPORATION. All capitalized terms not defined herein shall have the meanings given to them in the Loan Agreement. All terms of the Secured
Obligations and the documents evidencing such obligations are incorporated herein by this reference. All persons who may have or acquire an interest in the Subject Property shall be deemed to have notice of the terms of the Secured Obligations and
to have notice, if 

  

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provided therein, that: (a) the Note or the Loan Agreement may permit borrowing, repayment and re-borrowing so that repayments shall not reduce the
amounts of the Secured Obligations; and (b) the rate of interest on one or more Secured Obligations may vary from time to time. 

 ARTICLE 3. ASSIGNMENT OF LEASES AND RENTS 
  

	 	3.1	ASSIGNMENT. 

  

	 	(a)	As additional security for the Secured Obligations secured by this Mortgage, Mortgagor does hereby bargain, sell, assign, transfer and set over unto Mortgagee all the rents, issues,
profits and other income of any kind which, whether before or after foreclosure, or during the full statutory period of redemption, if any, shall accrue and be owing for the use or occupation of the Subject Property or any part thereof.

  

	 	(b)	Mortgagor agrees that upon or at any time after (i) the occurrence of a default or an event of default hereunder, under the Note, under the Loan Agreement, or under any
separate Assignment of Leases and Rents securing the Note (hereinafter referred to as “Assignment”), or (ii) the first publication of notice of sale for the foreclosure of this Mortgage pursuant to Minnesota Statutes, Chapter 580, or
(iii) the commencement of an action to foreclose this Mortgage pursuant to Minnesota Statutes, Chapter 581, or (iv) the commencement of any period of redemption after foreclosure of this Mortgage, Mortgagee shall, in any such event, and at
any such time, upon application to the District Court in the county where the Subject Property or any part thereof is located, by an action separate from the foreclosure under Chapter 580, in the foreclosure action under Chapter 581 or by
independent action (it being understood and agreed that the existence of a foreclosure under Chapter 580 or a foreclosure action under Chapter 581 is not a prerequisite to any action for a receiver hereunder), be entitled to the appointment of a
receiver for the rents, issues, profits and all other income of every kind which shall accrue and be owing for the use or occupation of the Subject Property or any part thereof, whether before or after foreclosure, or during the full statutory
period of redemption, if any, upon a showing that Mortgagor has breached any covenant contained in this Mortgage, the Note, the Loan Agreement or the Assignment, including, without limitation, any covenant relating to any of the following:

  

	 	(i)	Repayment of tenant security deposits, with interest thereon, as required by Minnesota Statutes, Section 504B.178, if applicable; 

  

	 	(ii)	Payment when due of prior or current real estate taxes or special assessments with respect to the Subject Property, or the periodic escrow for payment of the same;

  

	 	(iii)	Payment when due of premiums for insurance of the types required hereby, or the periodic escrow for payment of the same; or 

  

	 	(iv)	Keeping of the covenants required of a lessor or licensor pursuant to Minnesota Statutes, Section 504B.161, Subdivision 1, if applicable. 

  

	 	(c)	Mortgagee shall be entitled to the appointment of a receiver without regard to waste, adequacy of the security or solvency of Mortgagor. The court shall determine the amount of the
bond to be posted by the receiver. The receiver, who shall be an experienced property manager, shall collect (until the indebtedness secured hereby is paid in full and, in the case of a foreclosure sale, during the entire redemption period, if any)
the rents, issues, profits and all other income of any kind from the Subject Property, manage the Subject Property so as to prevent waste, execute leases within or beyond the period of the receivership, if approved by the court, and apply all rents,
issues, profits and other income collected by him in the following order: 

  

	 	(i)	to payment of all reasonable fees of the receiver, if any, approved by the court; 

  

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	 	(ii)	to the items listed in clauses (i) through (iv) above (to the extent applicable) in the priority as numbered; 

  

	 	(iii)	to expenses for normal maintenance, operation and management of the Subject Property, including but not limited to Mortgagee’s out-of-pocket costs and all other costs and
expenses which Mortgagee is entitled to pay or incur pursuant to the Assignment; and 

  

	 	(iv)	the balance to Mortgagee to be credited, prior to commencement of foreclosure, against the indebtedness secured hereby, in such order as Mortgagee may elect, or to be credited,
after commencement of foreclosure, to the amount required to be paid to effect a reinstatement prior to foreclosure sale, or to be credited, after a foreclosure sale, at the option of Mortgagee, at its sole discretion, to any deficiency or to the
amount required to be paid to effect a redemption, pursuant to Sections 580.30, 580.23, 581.10, 582.032 or 582.32 of the Act, or their successors, as the case may be, with any excess to be paid to Mortgagor; provided, however, that if this Mortgage
is not reinstated nor the Subject Property redeemed, as and during the times provided by said Sections 580.30, 580.23, 581.10, 582.032 or 582.32 of the Act or their successors, the entire amount received pursuant hereto, after deducting therefrom
the amounts applied by Mortgagee to any deficiency, shall be the property of the purchaser of the Subject Property at the foreclosure sale, together with all or any part of the Subject Property acquired through foreclosure. 

 

	 	(d)	The receiver shall file periodic accountings as the court determines are necessary and a final accounting at the time of his discharge. Mortgagee shall have the right, at any time
and without limitation, as provided in Section 582.03 of the Act, to advance money to the receiver to pay any part or all of the expenses which the receiver should otherwise pay, if cash were available from the Subject Property, and all sums so
advanced, with interest at the Default Rate, shall be a part of the sum required to be paid to redeem from any foreclosure sale. Said sums shall be proved by the affidavit of Mortgagee, its agent or attorney, describing the expenses for which the
same were advanced and describing the Subject Property, which must be filed for record in the office where this Mortgage is recorded, and a copy thereof shall be furnished to the sheriff and the receiver at least ten (10) days before the
expiration of any period of redemption. Until fully paid, the amounts required to be paid to effect a redemption shall continue to accrue interest at the Default Rate. 

  

	 	(e)	Upon the happening of any of the events set forth above, or during any period of redemption after foreclosure sale, and prior to the appointment of a receiver as hereinbefore
provided, Mortgagee shall have the right to collect the rents, issues, profits and other income of every kind from the Subject Property and apply the same in the manner hereinbefore provided for the application thereof by a receiver. The rights set
forth in this subsection (e) shall be binding upon the occupiers of the Subject Property from the date of filing by Mortgagee in the office where this Mortgage is recorded, in the county in which the Subject Property is located, of a notice of
default in the terms and conditions of this Mortgage and service of a copy of the notice upon the occupiers of the Subject Property. Enforcement hereof shall not cause Mortgagee to be deemed a mortgagee in possession, unless it elects in writing to
be so deemed. For the purpose aforesaid, Mortgagee may enter and take possession of the Subject Property, manage and operate the same and take any action which, in Mortgagee’s judgment, is necessary or proper to conserve the value of the
Subject Property. Mortgagee may also take possession of, and for these purposes use, any and all of the Property contained in the Subject Property. 

  

	 	(f)	The costs and expenses (including any receiver’s fees and attorney’s fees) incurred by Mortgagee pursuant to the powers herein contained shall be immediately reimbursed by
Mortgagor to Mortgagee on demand, shall be secured hereby and shall bear interest from the date incurred at the Default Rate. Mortgagee shall not be liable to account to Mortgagor for any action taken pursuant hereto, other than to account for any
rents actually received by Mortgagee. 

 The Mortgagor acknowledges that, concurrently herewith, the Mortgagor has executed and
delivered to the Mortgagee, as additional security for the repayment of the Loan, the Assignment, pursuant to which the Mortgagor 

  

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has assigned to the Mortgagee interests in the leases of the Subject Property and the rents and income from the Subject Property. All of the provisions of
the Assignment are hereby incorporated herein as if fully set forth at length in the text of this Mortgage. The Mortgagor agrees to abide by all of the provisions of the Assignment 
  

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

  

	 	3.3	COVENANTS. Mortgagor covenants and agrees at Mortgagor’s sole cost and expense to: (a) perform the obligations of lessor contained in the Leases and enforce
by all appropriate remedies performance by the lessees of the obligations of the lessees contained in the Leases; (b) give Mortgagee prompt written notice of any material default which occurs with respect to any of the Leases, whether the
default be that of the lessee or of the lessor; (c) exercise Mortgagor’s best efforts to keep all portions of the Subject Property that are capable of being leased leased at rental rates pursuant to the terms of the Loan Agreement;
(d) deliver to Mortgagee fully executed, copies of each and every Lease that it is required to deliver in accordance with the Loan Agreement; and (e) execute and record such additional assignments of any Lease or, if required by the terms
of the Loan Agreement, use commercially reasonable effort to obtain specific subordinations (or subordination, attornment and non-disturbance agreements executed by the lessor and lessee) of any Lease to the Mortgage, in form and substance
acceptable to Mortgagee, as Mortgagee may request. Mortgagor shall not, without Mortgagee’s prior written consent or as otherwise permitted by any provision of the Loan Agreement: (i) to the extent prohibited by the terms of the Loan
Agreement, enter into any Leases after the date hereof; (ii) execute any other assignment relating to any of the Leases; (iii) to the extent prohibited by the terms of the Loan Agreement, discount any rent or other sums due under the
Leases or collect the same in advance, other than to collect rentals one (1) month in advance of the time when it becomes due; (iv) to the extent prohibited by the terms of the Loan Agreement, terminate, modify or amend any of the terms of
the Leases or in any manner release or discharge the lessees from any obligations thereunder; (v) to the extent prohibited by the terms of the Loan Agreement, consent to any assignment or subletting by any lessee; or (vi) subordinate or
agree to subordinate any of the Leases to any other Mortgage or encumbrance. Any such attempted action in violation of the provisions of this Section 3.3 shall be null and void. Without in any way limiting the requirement of Mortgagee’s
consent hereunder, any sums received by Mortgagor in consideration of any termination (or the release or discharge of any lessee) modification or amendment of any Lease shall be applied as set forth in the Loan Agreement. 

 

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

  

	 	3.5	 MORTGAGOR TO COMPLY WITH LEASES. Mortgagor will, at its own cost and expense, perform, comply with and discharge all of the obligations of Mortgagor
under any leases or agreements for the use of the Property and use its best efforts to enforce or secure the performance of each obligation and undertaking of the respective tenants under any such leases and will appear in and defend, at its own
cost and expense, any action or proceeding arising out of or in any manner connected with Mortgagor’s interest in any leases of the Property. Mortgagor shall permit no surrender nor assignment of any tenant’s interest under said leases
unless the right to assign or surrender is expressly reserved under the lease (or otherwise permitted under the Loan Agreement), nor accept any installment of rent for more than one month in advance of its due date, nor execute any mortgage or
create or permit a lien which may be or become superior to any such leases, nor permit a subordination of any lease to this Instrument or lien. Mortgagor will not modify or amend the 

  

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terms of any such leases, nor borrow against or pledge the rentals from such leases nor exercise or waive any default of the tenant thereunder without the
prior consent of Mortgagee, to the extent such consent is required under the terms of the Loan Agreement. 

  

	 	3.6	MORTGAGEE’S RIGHT TO PERFORM UNDER LEASES. Should Mortgagor fail to perform, comply with or discharge any obligations of Mortgagor under any lease, or should
Mortgagee become aware of or be notified by any tenant under any lease of a failure on the part of Mortgagor to so perform, comply with or discharge its obligations under said lease, then Mortgagee may, but shall not be obligated to, without further
demand upon Mortgagor and without waiving or releasing Mortgagor from any obligation contained in this Instrument, remedy such failure, and Mortgagor agrees to repay upon demand all sums incurred by Mortgagee in remedying any such failure together
with interest at the rate as specified in the Note. All such sums, together with interest as aforesaid shall become additional Obligations, but no such advance shall be deemed to relieve Mortgagor from any default hereunder.

 ARTICLE 4. SECURITY AGREEMENT AND FIXTURE FILING 
  

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

 All goods, building and other materials, supplies, work in process, equipment, machinery, fixtures, furniture, furnishings, signs and other personal
property and embedded software included therein, wherever situated, which are or are to be incorporated into, used in connection with, or appropriated for use on (i) the real property described on Exhibit A attached hereto and
incorporated by reference herein (to the extent the same are not effectively made a part of the real property pursuant to Section 1.1 above) or (ii) the Improvements (which real property and Improvements are collectively referred to herein
as the Subject Property); together with all rents (to the extent, if any, they are not subject to Article 3); all inventory, accounts, cash receipts, deposit accounts, accounts receivable, contract rights, licenses, agreements, (including, without
limitation, all acquisition agreements with respect to the Subject Property); all of Mortgagor’s rights under any interest rate swap agreement, or other interest rate hedge agreement of any type executed by and between Mortgagor and Mortgagee;
all Contracts referenced in Section 5.15 below (including property management and leasing agreements), architects’ agreements, and/or construction agreements with respect to the completion of any improvements on the Subject Property),
general intangibles, chattel paper (whether electronic or tangible), instruments, documents, promissory notes, drafts, letters of credit, letter of credit rights, supporting obligations, insurance policies, insurance and condemnation awards and
proceeds, any other rights to the payment of money, trade names, trademarks and service marks arising from or related to the ownership, management, leasing or operation of the Subject Property or any business now or hereafter conducted thereon by
Mortgagor; all permits, consents, approvals, licenses, authorizations and other rights granted by, given by or obtained from, any governmental entity with respect to the Subject Property; all deposits or other security now or hereafter made with or
given to utility companies by Mortgagor with respect to the Subject Property; all advance payments of insurance premiums made by Mortgagor with respect to the Subject Property; all plans, drawings and specifications relating to the Subject Property;
all loan funds held by Mortgagee, whether or not disbursed; all funds deposited with Mortgagee pursuant to any loan agreement; all reserves, deferred payments, deposits, accounts, refunds, cost savings and payments of any kind related to the Subject
Property or any portion thereof; together with all replacements and proceeds of, and additions and accessions to, any of the foregoing; together with all books, records and files to the extent relating to any of the foregoing. 
 As to all of the above described personal property which is or which hereafter becomes a “fixture” under applicable law, this Mortgage
constitutes a fixture filing under the Minnesota Uniform Commercial Code, as amended or recodified from time to time (“UCC”), and is acknowledged and agreed to be a “construction mortgage” under the UCC. 
  

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

  

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

  

	 	4.4	RIGHTS OF MORTGAGEE. In addition to Mortgagee’s rights as a “Secured Party” under the UCC, Mortgagee may, but shall not be obligated to, at any time
without notice and at the expense of Mortgagor: (a) give notice to any person of Mortgagee’s rights hereunder and enforce such rights at law or in equity; (b) insure, protect, defend and preserve the Collateral or any rights or
interests of Mortgagee therein; (c) inspect the Collateral; and (d) endorse, collect and receive any right to payment of money owing to Mortgagor under or from the Collateral. Notwithstanding the above, in no event shall Mortgagee be
deemed to have accepted any property other than cash in satisfaction of any obligation of Mortgagor to Mortgagee unless Mortgagee shall make an express written election of said remedy under UCC § 336.9-620, or other applicable law.

  

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

  

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

 

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

  

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

  

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 Notwithstanding any other provision hereof, Mortgagee shall not be deemed to have accepted any property
other than cash in satisfaction of any obligation of Mortgagor to Mortgagee unless Mortgagor shall make an express written election of said remedy under UCC § 336.9-620, or other applicable law. Mortgagor agrees that Mortgagee shall have no
obligation to process or prepare any Collateral for sale or other disposition. 
  

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

  

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

 ARTICLE 5. RIGHTS AND DUTIES OF THE PARTIES 
  

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

  

	 	5.2	TAXES AND ASSESSMENTS. 

  

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

  

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

  

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	 	5.3	TAX AND INSURANCE IMPOUNDS. At any time following the occurrence of a Default, at Mortgagee’s option and upon its demand, but subject to Mortgagor’s right to
use cash from the Property to cover Permitted REIT Distributions (as such term is defined in the Loan Agreement), Mortgagor, shall, until all Secured Obligations have been paid in full, pay to Mortgagee monthly, annually or as otherwise directed by
Mortgagee an amount estimated by Mortgagee to be equal to: (a) all taxes, assessments, levies and charges imposed by any public or quasi-public authority or utility company which are or may become a lien upon the Subject Property or Collateral
and will become due for the tax year during which such payment is so directed; and (b) premiums for fire, hazard and insurance required or requested pursuant to the Loan Documents when same are next due. If Mortgagee determines that any amounts
paid by Mortgagor are insufficient for the payment in full of such taxes, assessments, levies, charges and/or insurance premiums, Mortgagee shall notify Mortgagor of the increased amounts required to pay all amounts when due, whereupon Mortgagor
shall pay to Mortgagee within thirty (30) days thereafter the additional amount as stated in Mortgagee’s notice. All sums so paid shall not bear interest, except to the extent and in any minimum amount required by law; and Mortgagee shall,
unless Mortgagor is otherwise in Default hereunder or under any Loan Document, apply said funds to the payment of, or at the sole option of Mortgagee release said funds to Mortgagor for the application to and payment of, such sums, taxes,
assessments, levies, charges, and insurance premiums. Upon Default by Mortgagor hereunder or under any Loan Document, Mortgagee may apply all or any part of said sums to any Secured Obligation and/or to cure such Default, in which event Mortgagor
shall be required to restore all amounts so applied, as well as to cure any other events or conditions of Default not cured by such application. Upon assignment of this Mortgage, Mortgagee shall have the right to assign in writing all amounts
collected and in its possession to its assignee whereupon Mortgagee and the Mortgagee shall be released from all liability with respect thereto. Within ninety-five (95) days following full repayment of the Secured Obligations (other than full
repayment of the Secured Obligations as a consequence of a foreclosure or conveyance in lieu of foreclosure of the liens and security interests securing the Secured Obligations) or at such earlier time as Mortgagee may elect, the balance of all
amounts collected and in Mortgagee’s possession shall be paid to Mortgagor and no other party shall have any right or claim thereto. 

  

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

  

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

  

	 	5.6	DAMAGES; INSURANCE AND CONDEMNATION PROCEEDS. 

  

	 	(a)	 The following (whether now existing or hereafter arising) are all absolutely and irrevocably assigned by Mortgagor to Mortgagee and, at the request of Mortgagee,
shall be paid directly to Mortgagee: (i) all awards of damages and all other compensation payable directly or indirectly by reason of a condemnation or proposed condemnation for public or private use affecting all or any part of, or any
interest in, the Subject Property or Collateral; (ii) all other claims and awards for damages to, or decrease in value of, all or any part of, or any interest in, the Subject Property or Collateral; (iii) all proceeds of any insurance
policies payable by reason of loss sustained to all or any part of the Subject Property or Collateral; and (iv) all interest which may accrue on any of the foregoing. Subject to applicable law and Section 5.6(b) below, and without regard
to any requirement contained in Section 5.7(d), Mortgagee may at its discretion apply all or any of the proceeds it receives to its 

  

 Page 9 of 20 

	 	 
expenses in settling, prosecuting or defending any claim and may apply the balance to the Secured Obligations in any such order acceptable to Mortgagee,
and/or Mortgagee may release all or any part of the proceeds to Mortgagor upon any conditions Mortgagee may impose. Mortgagee may commence, appear in, defend or prosecute any assigned claim or action and may adjust, compromise, settle and collect
all claims and awards assigned to Mortgagee; provided, however, in no event shall Mortgagee be responsible for any failure to collect any claim or award, regardless of the cause of the failure, including, without limitation, any
malfeasance or nonfeasance by Mortgagee or its employees or agents. 

  

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

  

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

  

	 	5.7	MAINTENANCE AND PRESERVATION OF THE SUBJECT PROPERTY. Subject to the provisions of the Loan Agreement, Mortgagor covenants: (a) to insure the Subject Property and
Collateral against such risks as Mortgagee may require pursuant to the Loan Agreement and, at Mortgagee’s request (but not more than fifteen (15) days prior to the termination date of any existing coverage), to provide evidence of such
insurance to Mortgagee, and to comply with the requirements of any insurance companies providing such insurance; (b) to keep the Subject Property and Collateral in good condition and repair; (c) not to remove or demolish the Subject
Property or Collateral or any part thereof, not to alter, restore or add to the Subject Property or Collateral and not to initiate or acquiesce in any change in any zoning or other land classification which affects the Subject Property without
Mortgagee’s prior written consent or as provided in the Loan Agreement; (d) to complete or restore promptly and in good and workmanlike manner the Subject Property and Collateral, or any part thereof which may be damaged or destroyed,
without regard to whether Mortgagee elects to require that insurance proceeds be used to reduce the Secured Obligations as provided in Section 5.6; (e) to comply with all laws, ordinances, regulations and standards, and all covenants,
conditions, restrictions and equitable servitudes, whether public or private, of every kind and character which affect the Subject Property or Collateral and pertain to acts committed or conditions existing thereon, including, without limitation,
any work, alteration, improvement or demolition mandated by such laws, covenants or requirements; (f) not to commit or permit waste of the Subject Property or Collateral; and (g) to do all other acts which from the character or use of the
Subject Property or Collateral may be reasonably necessary to maintain and preserve its value. 

  

 Page 10 of 20 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(h)	 As used herein, the term “Transfer” shall mean each of the following actions or events: the sale, transfer, assignment, lease as a whole, encumbrance,
hypothecation, mortgage or pledge in any manner whatsoever, whether voluntarily, involuntarily or by operation of law of: (i) the Subject Property or Collateral or any interest therein; (ii) title to any other security more specifically
described 

  

 Page 11 of 20 

	 	 
in any Loan Document; (iii) Mortgagor’s right, title and/or interest in the Loan Documents and any subsequent documents executed by Mortgagor in
connection therewith; (iv) legal or beneficial ownership of any partnership interest in Mortgagor if Mortgagor is a partnership; (v) legal or beneficial ownership of any membership interest in Mortgagor if Mortgagor is a limited liability
company; (vi) legal or beneficial ownership of any partnership interest in any general partner, venturer or member of Mortgagor; or (vii) legal or beneficial ownership of any of the stock in Mortgagor if Mortgagor is a corporation or in
any general partner, venturer or member in Mortgagor that is a corporation. 

  

	 	(i)	Mortgagor shall not make or commit to make any Transfer without Mortgagee’s prior written consent, which it may grant or withhold at its sole discretion (except with respect to
those Transfers reasonably approved by Mortgagee or otherwise expressly permitted under Sections 8.1(a), 8.1(b) and 8.4(a) and (b) of the Loan Agreement). It is expressly agreed that Mortgagee may predicate Mortgagee’s
decision to grant consent to a Transfer on such terms and conditions as Mortgagee may require, in Mortgagee’s sole discretion, including without limitation (i) consideration of the creditworthiness of the party to whom such Transfer will
be made and its development and management ability with respect to the Subject Property, (ii) consideration of whether the security for repayment, performance and discharge of the Secured Obligations, or Mortgagee’s ability to enforce its
rights, remedies, and recourses with respect to such security, will be impaired in any way by the proposed Transfer, (iii) an increase in the rate of interest payable under the Note or any other change in the terms and provisions of the Note
and other Loan Documents, (iv) reimbursement of Mortgagee for all costs and expenses incurred by Mortgagee in investigating the creditworthiness and management ability of the party to whom such Transfer will be made and in determining whether
Mortgagee’s security will be impaired by the proposed Transfer, (v) payment to Mortgagee of a transfer fee to cover the cost of documenting the Transfer in its records, (vi) payment of Mortgagee’s reasonable attorneys’ fees
in connection with such Transfer, (vii) endorsements (to the extent available under applicable law) to any existing mortgagee title insurance policies or construction binders insuring Mortgagee’s liens and security interests covering the
Subject Property, and (viii) require additional security for the payment, performance and discharge of the Secured Obligations. If Mortgagee’s consent should be given, any Transfer shall be subject to the Loan Documents and any transferee
of Mortgagor’s interest shall: (i) assume all of Mortgagor’s obligations thereunder; and (ii) agree to be bound by all provisions and perform all obligations contained therein; provided, however, that such
assumption shall not release Mortgagor or any maker or any guarantor of the Note from any liability thereunder or under any other Loan Documents without the prior written consent of Mortgagee. In the event of any Transfer without the prior written
consent of Mortgagee, whether or not Mortgagee elects to enforce its right to accelerate the Loan pursuant to Sections 6.1 and 6.2, all sums owing under the Note, as well as all other charges, expenses and costs owing under the Loan Documents, shall
at the option of Mortgagee, automatically bear interest at five percent (5%) above the rate provided in the Note, from the date (or any date thereafter) of such unconsented to Transfer. Mortgagor acknowledges that the automatic shift(s) to this
alternate rate is reasonable since the representations that Mortgagee relied upon in making the Loan may no longer be relied upon. A consent by Mortgagee to one or more Transfers shall not be construed as a consent to further Transfers or as a
waiver of Mortgagee’s consent with respect to future Transfers. 

  

	 	5.11	RELEASES, EXTENSIONS, MODIFICATIONS AND ADDITIONAL SECURITY. Without notice to or the consent, approval or agreement of any persons or entities having any interest at
any time in the Subject Property and Collateral or in any manner obligated under the Secured Obligations (“Interested Parties”), Mortgagee may, from time to time, release any person or entity from liability for the payment or performance
of any Secured Obligation, take any action or make any agreement extending the maturity or otherwise altering the terms or increasing the amount of any Secured Obligation, or accept additional security or release all or a portion of the Subject
Property and Collateral and other security for the Secured Obligations. None of the foregoing actions shall release or reduce the personal liability of any of said Interested Parties, or release or impair the priority of the lien of and security
interests created by this Mortgage upon the Subject Property and Collateral. 

  

 Page 12 of 20 

	 	5.12	RELEASES. If the Secured Obligations are paid, performed and discharged in full in accordance with the terms of this Mortgage, the Note, and the other Loan Documents,
then this Mortgage shall be released by Mortgagee at Mortgagor’s request and expense, and Mortgagee shall have no further obligation to make advances pursuant to the provisions hereof or in the other Loan Documents. Notwithstanding anything
contained herein to the contrary, Mortgagee hereby agrees, subject to the provisions of Section 2.7 of the Loan Agreement, to reconvey the Subject Property, notwithstanding the fact that all of the Secured Obligations which relate specifically
to the Other Security Instruments have not been satisfied. 

  

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

  

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

  

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

 ARTICLE 6. DEFAULT PROVISIONS 
  

	 	6.1	DEFAULT. For all purposes hereof, the term “Default” shall mean (a) the existence of any Event of Default as defined in the Loan Agreement; (b) at
Mortgagee’s option, the failure of Mortgagor to make any payment of principal or interest on the Note or to pay any other amount due hereunder or under the Note when the same is due and payable, whether at maturity, by acceleration or
otherwise; (c) the failure of Mortgagor to perform any non-monetary obligation hereunder, or the failure to be true of any representation or warranty of Mortgagor contained herein and the continuance of such failure for ten (10) days after
notice, or within any longer grace period, if any, allowed in the Loan Agreement for such failure, or (d) if Mortgagor or any other Person shall make a Transfer without the prior written consent of Mortgagee (which consent may be withheld in
Mortgagee’s sole discretion (except for those Transfers reasonably approved by Mortgagee or otherwise expressly permitted under Sections 8.1(a), 8.1(b), 8.4(a) and (b) of the Loan Agreement) or conditioned as provided
in Section 5.13). 

  

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

  

	 	(a)	In addition to the remedies set forth herein, Mortgagee shall have the right to enforce the provisions of this Mortgage and may, either with or without entry or taking possession,
proceed by suit or suits at law or in equity or by any other appropriate proceedings or remedy to enforce payment of the Secured Obligations or the performance of any other term hereof or any other right. Mortgagor hereby authorizes and fully
empowers Mortgagee to foreclose this Mortgage by judicial proceedings or by advertisement with full authority to sell the Property at public auction and convey the same to the purchaser in fee simple, either in one parcel or separate lots and
parcels, all in accordance with and in the manner prescribed by law. Out of the proceeds arising from such sale and foreclosure, Mortgagee is authorized and empowered to retain the principal and interest due on the Note and the Secured Obligations,
together with all such sums of money as Mortgagee shall have expended or advanced pursuant to this Instrument or pursuant to statute, with interest thereon as herein provided, and all costs and expenses of such foreclosure including lawful
attorney’s fees, with the balance, if any, to be paid to the persons entitled thereto by law. 

  

 Page 13 of 20 

	 	(b)	Mortgagee shall be entitled as a matter of right without notice and without giving bond and without regard to the solvency or insolvency of Mortgagor, or waste of the Property or
adequacy of the security of the Property, to apply for the appointment of a receiver under any statute or law. The receiver shall have all the rights, powers and remedies as provided by any such statute or law, including without limitation the
rights of receiver pursuant to Minnesota Statutes §576.01, as amended. Any such receiver shall, from the date of appointment through any period of redemption existing at law, collect the rents and all other income of any kind, manage the
Property so as to prevent waste, execute leases within or beyond the term of receivership, perform the terms of this Instrument and apply the rents, issues and profits to (i) the payment of the expenses enumerated in Minnesota Statutes
§576.01, Subd. 2 in the priority mentioned therein, (ii) all expenses for maintenance of the Property, (iii) the costs and expenses of the receivership, including reasonable attorneys fees, (iv) the repayment of the Secured
Obligations in such order and manner as Mortgagee may elect and (v) as further provided in any assignment of rents executed by Mortgagor to Mortgagee (whether contained in this Instrument or in a separate instrument). Mortgagor does hereby
irrevocably consent to such appointment. 

  

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

  

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

  

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

  

	 	(f)	To enter upon, possess, manage and operate the Subject Property or any part thereof, to take and possess all documents, books, records, papers and accounts of Mortgagor or the then
owner of the Subject Property, to make, terminate, enforce or modify Leases of the Subject Property upon such terms and conditions as Mortgagee deems proper, to make repairs, alterations and improvements to the Subject Property as necessary, in
Mortgagee’s or Mortgagee’s sole judgment, to protect or enhance the security hereof; 

  

	 	(g)	 To execute a written notice of such Default and of its election to cause the Subject Property to be sold to satisfy the Secured Obligations. As a condition
precedent to any such sale, Mortgagee shall give and record such notice as the law then requires. When the minimum period of time required by law after such notice has elapsed, Mortgagee, without notice to or demand upon Mortgagor except as required
by law, shall sell the Subject Property at the time and place of sale fixed by it in the notice of sale, at one or several sales, either as a whole or in separate parcels and in such manner and order, all as Mortgagee in its sole discretion may
determine, at public auction to the highest bidder for cash, in lawful money of the United States, payable at time of sale. Neither Mortgagor nor any other person or entity other than Mortgagee shall have the right to direct the order in which the
Subject Property is sold. Subject to requirements and limits imposed by law, Mortgagee may from time to time postpone 

  

 Page 14 of 20 

	 	 
sale of all or any portion of the Subject Property by public announcement at such time and place of sale. Mortgagee shall deliver to the purchaser at such
sale a deed conveying the Subject Property or portion thereof so sold, but without any covenant or warranty, express or implied. The recitals in the deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,
including Mortgagee, Mortgagor or Mortgagee may purchase at the sale; 

  

	 	(h)	To resort to and realize upon the security hereunder and any other security now or later held by Mortgagee concurrently or successively and in one or several consolidated or
independent judicial actions or lawfully taken non-judicial proceedings, or both, and to apply the proceeds received upon the Secured Obligations all in such order and manner as Mortgagee, or either of them, determine in their sole discretion.

  

	 	(i)	Upon sale of the Subject Property at any judicial or non-judicial foreclosure, Mortgagee may credit bid (as determined by Mortgagee in its sole and absolute discretion) all or any
portion of the Secured Obligations. In determining such credit bid, Mortgagee may, but is not obligated to, take into account all or any of the following: (i) appraisals of the Subject Property as such appraisals may be discounted or adjusted
by Mortgagee in its sole and absolute underwriting discretion; (ii) expenses and costs incurred by Mortgagee with respect to the Subject Property prior to foreclosure; (iii) expenses and costs which Mortgagee anticipates will be incurred
with respect to the Subject Property after foreclosure, but prior to resale, including, without limitation, costs of structural reports and other due diligence, costs to carry the Subject Property prior to resale, costs of resale (e.g. commissions,
attorneys’ fees, and taxes), costs of any hazardous materials clean-up and monitoring, costs of deferred maintenance, repair, refurbishment and retrofit, costs of defending or settling litigation affecting the Subject Property, and lost
opportunity costs (if any), including the time value of money during any anticipated holding period by Mortgagee; (iv) declining trends in real property values generally and with respect to properties similar to the Subject Property;
(v) anticipated discounts upon resale of the Subject Property as a distressed or foreclosed property; (vi) the fact of additional collateral (if any), for the Secured Obligations; and (vii) such other factors or matters that
Mortgagee (in its sole and absolute discretion) deems appropriate. In regard to the above, Mortgagor acknowledges and agrees that: (w) Mortgagee is not required to use any or all of the foregoing factors to determine the amount of its credit
bid; (x) this Section does not impose upon Mortgagee any additional obligations that are not imposed by law at the time the credit bid is made; (y) the amount of Mortgagee’s credit bid need not have any relation to any loan-to-value
ratios specified in the Loan Documents or previously discussed between Mortgagor and Mortgagee; and (z) Mortgagee’s credit bid may be (at Mortgagee’s sole and absolute discretion) higher or lower than any appraised value of the
Subject Property. 

  

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

  

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

  

	 	6.5	 NO CURE OR WAIVER. Neither Mortgagee’s nor Mortgagee’s nor any receiver’s entry upon and taking possession of all or any part of the
Subject Property and Collateral, nor any collection of rents, issues, profits, insurance proceeds, condemnation proceeds or damages, other security or proceeds of other security, or other sums, nor the application of any collected sum to any Secured
Obligation, nor the exercise or failure to exercise of any other right or remedy by Mortgagee or any receiver shall cure or waive any 

  

 Page 15 of 20 

	 	 
breach, Default or notice of default under this Mortgage, or nullify the effect of any notice of default or sale (unless all Secured Obligations then due
have been paid and performed and Mortgagor has cured all other defaults), or impair the status of the security, or prejudice Mortgagee in the exercise of any right or remedy, or be construed as an affirmation by Mortgagee of any tenancy, lease or
option or a subordination of the lien of or security interests created by this Mortgage. 

  

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

  

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

 ARTICLE 7. MISCELLANEOUS PROVISIONS 
  

	 	7.1	ADDITIONAL PROVISIONS. The Loan Documents contain or incorporate by reference the entire agreement of the parties with respect to matters contemplated herein and
supersede all prior negotiations. The Loan Documents grant further rights to Mortgagee and contain further agreements and affirmative and negative covenants by Mortgagor which apply to this Mortgage and to the Subject Property and Collateral and
such further rights and agreements are incorporated herein by this reference. 

  

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

  

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

  

	 	7.4	RECOURSE TO SEPARATE PROPERTY. Any married person who executes this Mortgage as a Mortgagor agrees that any money judgment which Mortgagee obtains pursuant to the
terms of this Mortgage or any other obligation of that married person secured by this Mortgage may be collected by execution upon that person’s separate property, and any community property of which that person is a manager.

  

	 	7.5	WAIVER OF MARSHALLING RIGHTS. Mortgagor, for itself and for all parties claiming through or under Mortgagor, and for all parties who may acquire a lien on or interest
in the Subject Property and Collateral, hereby waives all rights to have the Subject Property and Collateral and/or any other property, which is now or later may be security for any Secured Obligation (“Other Property”) marshalled upon any
foreclosure of the lien of this Mortgage or on a foreclosure of any other lien or security interest against any security for any of the Secured Obligations. Mortgagee shall have the right to sell, and any court in which foreclosure proceedings may
be brought shall have the right to order a sale of, the Subject Property and any or all of the Collateral or Other Property as a whole or in separate parcels, in any order that Mortgagee may designate. 

  

 Page 16 of 20 

	 	7.6	RULES OF CONSTRUCTION. When the identity of the parties or other circumstances make it appropriate the masculine gender includes the feminine and/or neuter, and the
singular number includes the plural. The term “Subject Property” and “Collateral” means all and any part of the Subject Property and Collateral, respectively, and any interest in the Subject Property and Collateral, respectively.

  

	 	7.7	SUCCESSORS IN INTEREST. The terms, covenants, and conditions herein contained shall be binding upon and inure to the benefit of the heirs, successors and assigns of
the parties hereto; provided, however, that this Section 7.7 does not waive or modify the provisions of Section 6.1(e). 

  

	 	7.8	EXECUTION IN COUNTERPARTS. To facilitate execution, this document may be executed in as many counterparts as may be convenient or required. It shall not be necessary
that the signature or acknowledgment of, or on behalf of, each party, or that the signature of all persons required to bind any party, or the acknowledgment of such party, appear on each counterpart. All counterparts shall collectively constitute a
single document. It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, and the respective acknowledgments of, each of the parties
hereto. Any signature or acknowledgment page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures or acknowledgments thereon and thereafter attached to another counterpart identical thereto
except having attached to it additional signature or acknowledgment pages. 

  

	 	7.9	MINNESOTA LAW. This Mortgage shall be construed in accordance with the laws of the State of Minnesota, except to the extent that federal laws preempt the laws of the
State of Minnesota. 

  

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

  

	 	7.11	NOTICES. All notices, demands or other communications required or permitted to be given pursuant to the provisions of this Mortgage shall be in writing and shall be
considered as properly given if delivered personally or sent by certified United States mail, return receipt requested, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid. Notices so sent shall be effective upon
receipt at the address set forth below; provided, however, that non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall
be deemed receipt of such communication. For purposes of notice, the address of the parties shall be: 

  

 Page 17 of 20 

			
	Mortgagor:	  	 KBS INDUSTRIAL PORTFOLIO, LLC,
 a Delaware limited
liability company
 c/o KBS Capital Advisors, LLC
 620 Newport
Center Drive, Suite 1300
 Newport Beach, CA 92660
 Telephone:
(949) 417-6500
 Telecopier: (949) 417-6518

		
	Mortgagee:	  	 WELLS FARGO BANK, NATIONAL ASSOCIATION
 Real Estate Group
(AU #2955)
 Orange County
 2030 Main Street, Suite 800

Irvine, CA 92614
  
 Attn: John Ferguson, Relationship Manager
 Tel: (949) 251-4310
 Fax: (949) 851-9728
 Loan #: 105154

		
	With a copy to:	  	 Wells Fargo Bank, National Association
 Los Angeles Loan
Center
 2120 East Park Place, Suite 100
 El Segundo, CA 90245

 Attention: Shirley Floresca

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

	 	7.12	LIMITATIONS ON RECOURSE. The limitations on personal liability of shareholders, partners and members of Mortgagor contained in Section 11.21 of the Loan Agreement
shall apply to this Mortgage. 

  

	 	7.13	RIGHTS UNDER UCC. In addition to the rights available to a mortgagee of real property generally, Mortgagee shall also have all the right, remedy and recourse available
to a secured party under the UCC, including the right to proceed as to the personal property under the provisions of the UCC governing default or to proceed as to the personal property in accordance with the procedures and remedies available
pursuant to a foreclosure of real estate. 

  

	 	7.14	RIGHT TO DISCONTINUE PROCEEDING. In the event Mortgagee shall have proceeded to invoke any right, remedy or recourse permitted under this Instrument and shall
thereafter elect to discontinue or abandon the same for any reason, Mortgagee shall have the unqualified right to do so and in such event Mortgagor and Mortgagee shall be restored to their former positions with respect to the Obligations. This
Instrument, the Property and all right, remedy and recourse of Mortgagee shall continue as if the same had not been invoked. 

  

	 	7.15	ACKNOWLEDGEMENT OF WAIVER OF HEARING BEFORE SALE. Mortgagor understands and agrees that: 

  

	 	(a)	Upon the occurrence of a Default under the terms of this Mortgage, Mortgagee has the right, inter alia, to foreclose this Mortgage by advertisement pursuant to Minnesota
Statutes Chapter 580, as hereafter amended, or pursuant to any similar or replacement statute hereafter enacted; 

  

 Page 18 of 20 

	 	(b)	If Mortgagee elects to foreclose by advertisement, it may cause the Subject Property, or any part thereof, to be sold at public auction; and 

  

	 	(c)	Notice of such sale must be published for six (6) successive weeks at least once a week in a newspaper of general circulation and that no personal notice is required to be
served upon Mortgagor. 

 Mortgagor further understands that upon the occurrence of a Default Mortgagee may also elect its
rights under the UCC, take possession of the personal property and dispose of the same by sale or otherwise in one or more parcels, provided that at least ten (10) days’ prior notice of such disposition must be given; all as provided for
by the UCC. Mortgagor further understands that under the Constitution of the United States and the Constitution of the State of Minnesota it may have the right to notice and hearing before the property may be sold and that the procedure for
foreclosure by advertisement described above does not insure that notice will be given to Mortgagor and neither said procedure for foreclosure by advertisement nor the UCC requires any hearing or other judicial proceeding. MORTGAGOR HEREBY EXPRESSLY
CONSENTS AND AGREES THAT THE PROPERTY MAY BE FORECLOSED BY ADVERTISEMENT AND THAT THE PERSONAL PROPERTY MAY BE DISPOSED OF PURSUANT TO THE UCC, ALL AS DESCRIBED ABOVE. MORTGAGOR ACKNOWLEDGES THAT IT IS REPRESENTED BY LEGAL COUNSEL; THAT BEFORE
SIGNING THIS DOCUMENT THIS PARAGRAPH AND MORTGAGOR’S CONSTITUTIONAL RIGHTS WERE FULLY EXPLAINED BY SUCH COUNSEL AND THAT MORTGAGOR UNDERSTANDS THE NATURE AND EXTENT OF THE RIGHTS WAIVED HEREBY AND THE EFFECT OF SUCH WAIVER. 
  

	 	7.16	COMPLIANCE WITH MINNESOTA FORECLOSURE LAW. If any provision in this Mortgage shall be inconsistent with any provision of the Minnesota Statutes, Chapter 559, 576, 580,
581, and 582, as applicable (as may be amended from time to time, the “Act”); provisions of the Act shall take precedence over the provisions of this Mortgage, but shall not invalidate or render unenforceable any other provision of
this Mortgage that can be construed in a manner consistent with the Act. 

  

	 	(a)	If any provision of this Mortgage shall grant to the Mortgagee (including the Mortgagee acting as a mortgagee-in-possession) or a receiver appointed pursuant to the provisions of
Section 6.2 of this Mortgage any powers, rights or remedies prior to, upon or following the occurrence of a Default which are more limited than the powers, rights or remedies that would otherwise be vested in the Mortgagee under the Act or in
such receiver under applicable law in the absence of said provision, the Mortgagee and such receiver shall be vested with the powers, rights and remedies granted in the Act to the full extent permitted by law. 

  

	 	(b)	Without limiting the generality of the foregoing, all expenses incurred by the Mortgagee which are of the type referred to in Section 580.29 or 576.01 of the Act, whether
incurred before or after any decree or judgment of foreclosure, and whether or not enumerated in this Mortgage, shall be added to the Secured Obligations and/or by the judgment of foreclosure. 

 [Signature Follows on Next Page] 
  

 Page 19 of 20 

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

													
	“MORTGAGOR”

  

											
	KBS INDUSTRIAL PORTFOLIO, LLC,
	a Delaware limited liability company
		
	By:	 	KBS REIT ACQUISITION XX, LLC,
		 	 a Delaware limited liability company,
 its sole member

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

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

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

						
		 		 		 		 	By:	 	 /s/ Charles J. Schreiber, Jr.

		 		 		 		 		 	Charles J. Schreiber, Jr.
		 		 		 		 		 	Chief Executive Officer

  

 Page 20 of 20Loan Agreement (related to the acquisition of Woodfield Preserve Office)

 Exhibit 10.76 
 Loan No. 105195 

 LOAN AGREEMENT 
 (Non-Revolving) 
 BETWEEN 
 KBS WOODFIELD PRESERVE, LLC, 
 a
Delaware limited liability company, 
 AS BORROWER, 
 AND 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 AS LENDER 
 Dated as of November 13,
2007 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	ARTICLE I DEFINITIONS	  	1
			
	 1.1    
	 	Certain Defined Terms	  	1
	 1.2    
	 	Computation of Time Periods	  	12
	 1.3    
	 	Terms	  	12
		
	ARTICLE II THE LOAN	  	12
			
	 2.1    
	 	Loan Disbursements and Repayment	  	12
		 	(a)	  	Disbursement	  	12
		 	(b)	  	General	  	12
		 	(c)	  	Term; Extension Option	  	13
		 	(d)	  	Borrower Representatives	  	14
	 2.2    
	 	Fees; Expenses	  	14
		 	(a)	  	Fees and Expenses	  	14
		 	(b)	  	Payment of Fees	  	15
	2.3	 	Interest on the Loan	  	15
	2.4	 	Payments	  	15
		 	(a)	  	Voluntary Prepayments	  	15
		 	(b)	  	Credit for Payments	  	15
		 	(c)	  	Payments on Non-Business Days	  	15
		 	(d)	  	Exit Fee	  	16
	2.5	 	Increased Capital	  	16
	2.6	 	Notice of Increased Costs	  	16
	2.7	 	Full Repayment and Reconveyance or Release	  	17
		
	ARTICLE III PROPERTY REQUIREMENTS AND REPRESENTATIONS	  	17
			
	3.1	 	Representations Regarding the Property	  	17
	3.2	 	Appraisals	  	18
	3.3	 	Covenants Relating to the Property	  	18
		 	(a)	  	Insurance, Casualty	  	18
		 	(b)	  	Leases; Lease Approval; Lease Termination	  	19
		 	(c)	  	SNDAs	  	21
		 	(d)	  	Major Agreements; Property Management Agreements	  	21
		 	(e)	  	Major Construction	  	21
		 	(f)	  	Property Taxes	  	21
		 	(g)	  	Security Instrument	  	22
		 	(h)	  	Survey	  	22
		
	ARTICLE IV DISBURSEMENT	  	22
			
	4.1	 	Conditions to Disbursement	  	22
		 	(a)	  	Loan Documents	  	22
		 	(b)	  	Property Documents	  	23
		 	(c)	  	Organizational Documents	  	23
		 	(d)	  	Fixed Rate Notice	  	24

  

 i 

							
		 	(e)	  	Solvency	  	24
		 	(f)	  	Material Adverse Changes	  	24
		 	(g)	  	Litigation Proceedings	  	24
		 	(h)	  	Perfection of Liens	  	24
		 	(i)	  	Indefeasible Title	  	24
		 	(j)	  	No Event of Default	  	24
		 	(k)	  	Fees and Expenses	  	24
		 	(l)	  	Opinions of Counsel	  	24
		 	(m)	  	Consents and Approvals	  	25
		 	(n)	  	Insurance	  	25
		 	(o)	  	Due Diligence	  	25
		 	(p)	  	Representations and Warranties	  	25
	4.2	 	Intentionally Omitted	  	25
	4.3	 	Funds Transfer Disbursements	  	25
		
	ARTICLE V REPRESENTATIONS AND WARRANTIES	  	26
			
	5.1	 	Organization; Corporate Powers	  	26
	5.2	 	Authority	  	26
	5.3	 	Ownership of Borrower	  	27
	5.4	 	No Conflict	  	27
	5.5	 	Consents and Authorizations	  	27
	5.6	 	Governmental Regulation	  	28
	5.7	 	Prior Financials	  	28
	5.8	 	Financial Statements; Projections and Forecasts	  	28
	5.9	 	Prior Operating Statements	  	28
	5.10	 	Operating Statements and Projections	  	28
	5.11	 	Litigation; Adverse Effects	  	29
	5.12	 	No Material Adverse Change	  	29
	5.13	 	Payment of Taxes	  	29
	5.14	 	Material Adverse Agreements	  	29
	5.15	 	Performance	  	29
	5.16	 	Federal Reserve Regulations	  	30
	5.17	 	Disclosure	  	30
	5.18	 	Requirements of Law; ERISA	  	30
	5.19	 	Environmental Matters	  	30
	5.20	 	Major Agreements; Leases	  	31
	5.21	 	Solvency	  	32
	5.22	 	Title to Property; No Liens	  	32
	5.23	 	Use of Proceeds	  	32
	5.24	 	Property Management Agreements	  	32
	5.25	 	Single Purpose Entity	  	32
	5.26	 	Tax Shelter Regulations	  	32
	5.27	 	Organizational Documents	  	32
		
	ARTICLE VI REPORTING COVENANTS	  	33
			
	6.1	 	Financial Statements and Other Financial and Operating Information (Borrower)	  	33
		 	(a)	  	Operating Statements and Operating Results	  	33

  

 ii 

							
		 	(b)	  	Quarterly Financial Statements	  	33
		 	(c)	  	Borrower’s Certificate	  	33
		 	(d)	  	Budgets	  	34
		 	(e)	  	Knowledge of Event of Default	  	34
		 	(f)	  	Litigation, Arbitration or Government Investigation	  	35
		 	(g)	  	ERISA Matters	  	35
		 	(h)	  	Other Information	  	35
		 	(i)	  	Accountant Reports	  	36
	6.2	 	Financial Statements and Other Financial and Operating Information (KBS REIT)	  	36
		 	(a)	  	Quarterly Financial Statements	  	36
		 	(b)	  	Additional Reporting	  	36
	6.3	 	Environmental Notices	  	36
	6.4	 	Confidentiality	  	36
		
	ARTICLE VII AFFIRMATIVE COVENANTS	  	37
			
	7.1	 	Existence	  	37
	7.2	 	Qualification, Name	  	37
	7.3	 	Compliance with Laws, Etc.	  	37
	7.4	 	Payment of Taxes and Claims	  	37
	7.5	 	Maintenance of Property; Insurance	  	38
	7.6	 	Inspection of Property; Books and Records; Discussions	  	38
	7.7	 	Maintenance of Permits, Etc.	  	38
	7.8	 	Single Purpose Entity	  	38
	7.9	 	Subordination of Property Management Agreements	  	39
	7.10	 	SNDAs	  	39
	7.11	 	KBS REIT Covenants	  	39
		
	ARTICLE VIII NEGATIVE COVENANTS	  	39
			
	8.1	 	Operating Restrictions:	  	39
		 	(a)	  	Indebtedness; Liens	  	39
		 	(b)	  	Transfers of Collateral	  	39
		 	(c)	  	Restrictions on Fundamental Changes	  	40
		 	(d)	  	Loans to Other Persons; Investments	  	40
	8.2	 	Amendment of Constituent Documents	  	40
	8.3	 	Margin Regulations	  	40
	8.4	 	Ownership; Management	  	41
		 	(a)	  	Ownership of Borrower	  	41
		 	(b)	  	Management	  	41
		
	ARTICLE IX FINANCIAL COVENANT	  	41
			
	9.1	 	Distributions	  	41
	9.2	 	Incurrence of Additional Indebtedness	  	41
		
	ARTICLE X EVENTS OF DEFAULT; RIGHTS AND REMEDIES	  	42
			
	10.1	 	Events of Default	  	42
		 	(a)	  	Failure to Make Payments When Due	  	42
		 	(b)	  	Distributions; Additional Indebtedness	  	42

  

 iii 

							
		 	(c)	  	Other Defaults	  	42
		 	(d)	  	Breach of Representation or Warranty	  	42
		 	(e)	  	Involuntary Bankruptcy; Appointment of Receiver, Etc.	  	42
		 	(f)	  	Voluntary Bankruptcy; Appointment of Receiver, Etc.	  	43
		 	(g)	  	Judgments and Attachments	  	43
		 	(h)	  	Dissolution	  	43
		 	(i)	  	Loan Documents; Failure of Security	  	43
		 	(j)	  	ERISA Liabilities	  	44
		 	(k)	  	Environmental Liabilities	  	44
		 	(l)	  	Solvency; Material Adverse Change	  	44
		 	(m)	  	Interest Rate Management Agreement	  	44
		 	(n)	  	Default under any Other Security Instrument	  	44
		 	(o)	  	KBS REIT Covenant Compliance	  	44
	10.2	 	Rights and Remedies	  	45
		 	(a)	  	Acceleration, Etc.	  	45
		 	(b)	  	Access to Information	  	45
		 	(c)	  	Use of Intangibles	  	45
		 	(d)	  	Waiver of Demand	  	46
		 	(e)	  	Waivers, Amendments and Remedies	  	46
	10.3	 	Permitted REIT Distributions	  	46
		
	ARTICLE XI MISCELLANEOUS	  	47
			
	11.1	 	Expenses	  	47
		 	(a)	  	Generally	  	47
		 	(b)	  	After Event of Default	  	47
	11.2	 	Indemnity	  	47
	11.3	 	Change in Accounting Principles	  	48
	11.4	 	Amendments and Waivers	  	48
	11.5	 	Independence of Covenants	  	49
	11.6	 	Notices and Delivery	  	49
	11.7	 	Survival of Warranties, Indemnities and Agreements	  	49
	11.8	 	Failure or Indulgence Not Waiver; Remedies Cumulative	  	49
	11.9	 	Marshalling; Payments Set Aside	  	50
	11.10	 	Severability	  	50
	11.11	 	Headings	  	50
	11.12	 	Governing Law; Waiver	  	50
	11.13	 	Limitation of Liability	  	50
	11.14	 	Successors and Assigns	  	51
	11.15	 	Consent to Jurisdiction and Service of Process; Waiver of Jury Trial	  	51
	11.16	 	Counterparts; Effectiveness; Inconsistencies	  	51
	11.17	 	Performance of Obligations	  	52
	11.18	 	Construction	  	52
	11.19	 	Entire Agreement	  	52
	11.20	 	Assignments and Participations	  	52
	11.21	 	Limitation on Personal Liability of Shareholders, Partners and Members	  	54
	11.22	 	Cross-Default; Cross-Collateralization	  	54

  

 iv 

							
	 11.23
	 	USA Patriot Act Notice, Compliance	  	54
	 11.24
	 	Electronic Document Deliveries	  	54

  

					
	LIST OF EXHIBITS AND SCHEDULES
	
	Exhibits:
			
	A	  	-	  	Property Description
	B	  	-	  	Form of Subordination Agreement; Acknowledgment of Lease Assignment, Estoppel, Attornment and Non-Disturbance Agreement
	C-1	  	-	  	Form of Borrower Certificate
	C-2	  	-	  	Form of KBS REIT Compliance Certificate
	D	  	-	  	Transfer Authorizer Designation
	E	  	-	  	Form of Modification of Security Instrument
	F	  	-	  	KBS REIT Covenants
	
	Schedules:
			
	2.2(a)	  		  	Fees and Expenses
	5.3	  		  	Ownership of Borrower
	5.11	  		  	Litigation Disclosure
	5.19	  		  	Environmental Reports
	5.24	  		  	Property Management and Leasing Agreements
	11.22	  		  	Schedule of Loans and Properties

  

 v 

 LOAN AGREEMENT 
 THIS LOAN AGREEMENT is dated as of November 13, 2007 (as amended, supplemented or modified from time to time, the “Agreement”) and is between KBS WOODFIELD PRESERVE, LLC, a Delaware limited
liability company (“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”). 
 RECITALS 

 WHEREAS, Borrower has requested that Lender provide Borrower with a loan facility in the principal amount of Sixty-Eight Million Four
Hundred Thousand Dollars ($68,400,000), to be secured by an approximately 610,462 square foot office building to be acquired by Borrower concurrently herewith (the “Property”), as more particularly described on Exhibit A
hereto; and 
 WHEREAS, Lender is willing to make the requested facility available to Borrower, to finance Borrower’s acquisition of the
Property, on the terms and conditions set forth herein. 
 NOW, THEREFORE, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS

 1.1 Certain Defined Terms. 
 The following terms used in this Agreement shall have the following meanings (such meanings to be applicable, except to the extent otherwise indicated in a definition of a particular term, both to the singular and the
plural forms of the terms defined): 
 “Accommodation Obligations”, as applied to any Person, means
(a) any Indebtedness of another Person in respect of which that Person is liable, including, without limitation, any such Indebtedness directly or indirectly guaranteed, endorsed (otherwise than for collection or deposit in the ordinary course
of business), co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable including in respect of any partnership in which that Person is a general partner; and
(b) any Contractual Obligations (contingent or otherwise) of such Person arising through any agreement to purchase, repurchase or otherwise acquire such Indebtedness or any security therefor, or to provide funds for the payment or discharge
thereof (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, or other financial condition, or to make payment other than for value received. 
 “Accountants” means any “big four” accounting firm or another firm of certified public accountants of national
standing, if any, selected by Borrower and acceptable to Lender. 
 “Acquisition Cost” shall mean, as to the
Property, the Purchase Price of the Property, plus all costs and expenses incurred by Borrower in connection with its acquisition of the Property and all adjustments to the Purchase Price required under the terms of the purchase agreement entered
into by Borrower in connection with the acquisition of the Property. 
  

 1 

 “Affiliates” as applied to any Person, means any other Person directly
or indirectly controlling, controlled by, or under common control with, that Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and
“under common control with”), as applied to any Person, means (a) the possession, directly or indirectly, of the power to vote ten percent (10%) or more of all interests having voting power for the election of directors of such
Person or otherwise to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting interests or by contract or otherwise, or (b) the ownership of a general partnership interest or a
limited partnership interest (or other ownership interest) representing ten percent (10%) or more of the outstanding limited partnership interests or other ownership interests of such Person. 
 “Allocated Share” means at any time, and from time to time, an amount expressed as a percentage that is calculated by
dividing the cost basis of the Property by the cost basis of all real property owned directly or indirectly by KBS REIT or the REIT Operating Partnership. 
 “Appraisal” means a written appraisal prepared by an independent MAI appraiser acceptable to Lender and subject to Lender’s customary independent appraisal requirements and prepared in compliance
with all applicable regulatory requirements, including FIRREA. 
 “Appraised Value” means, with respect to
the property being appraised, the fair market value, on an “as-is” basis, as reflected in the then most recent Appraisal of the Property, as adjusted, if applicable, by Lender based upon its internal review of such Appraisal. 

“Benefit Plan” means any employee pension benefit plan as defined in Section 3(2) of ERISA (other than a
Multiemployer Plan) in respect of which a Person or an ERISA Affiliate is, or within the immediately preceding five (5) years was, an “employer” as defined in Section 3(5) of ERISA. 
 “Borrower’s Certificate” means a certificate, certifying as to the matters set forth therein, signed on behalf of
the Borrower by an authorized signatory having primary responsibility with respect to the matters set forth therein. 
 “Borrower’s Account” means Account No. 4121618375 of Borrower with Lender into which a portion of the loan funds shall be deposited in accordance with this Agreement. 
 “Business Day” means (a) with respect to the selection of a Fixed Rate under and as defined in the Note, payment or
rate determination of LIBO under the Note, a day, other than a Saturday or Sunday, on which Lender is open for business in San Francisco and on which dealings in Dollars are carried on in the London interbank market, and (b) for all other
purposes any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of California, or is a day on which banking institutions located in California are required or authorized by law or other governmental
action to close. 
 “Capital Leases”, as applied to any Person, means any lease of any property (whether
real, personal or mixed) by that Person as lessee which, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person. 
  

 2 

 “Closing Date” means the date on which the initial advance of proceeds
of the Loan are disbursed. 
 “Collateral” means the personal property constituting a part of the Subject
Property (as defined in the Security Instrument). 
 “Compliance Ratio” means the ratio (expressed as a
percentage) of (a) the Loan Commitment to (b) the lesser of (i) the Appraised Value of the Property and (ii) the Acquisition Cost of the Property. 
 “Concessions” shall mean all above-market amounts paid or foregone by Borrower directly to or on behalf of any tenant for
the purpose of inducing such tenant to enter into a lease, including, without limitation, tenant improvement allowances, moving expenses, free rent periods or abatements, and/or assumptions or buyouts of the tenant’s obligations under other
leases. (The term “above-market” shall be understood to mean amounts in excess of those assumed in the then most recent Appraisal.) Lender shall have the right to adjust any Concessions based, in part and as applicable, upon assumptions
set forth in the then most current Appraisal. All Concessions shall be amortized over the full lease term. 
 “Contaminant” means any pollutant (as that term is defined in 42 U.S.C. 9601(33)) or toxic pollutant (as that term is defined in 33 U.S.C. 1362(13)), hazardous substance (as that term is defined in 42 U.S.C. 9601(14)),
hazardous chemical (as that term is defined by 29 CFR Section 1910.1200(c)), toxic substance, hazardous waste (as that term is defined in 42 U.S.C. 6903(5)), radioactive material, special waste, petroleum (including crude oil or any
petroleum-derived substance, waste, or breakdown or decomposition product thereof), any constituent of any such substance or waste, including, but not limited to, polychlorinated biphenyls and asbestos, or any other substance or waste deleterious to
the environment the release, disposal or remediation of which is now or at any time becomes subject to regulation under any Environmental Law, along with all “Hazardous Materials” as such term is defined in the Environmental Indemnity
Agreement executed by Borrower concurrently herewith. 
 “Contractual Obligation”, as applied to any Person,
means any provision of any securities issued by that Person or any indenture, mortgage, lease, contract, undertaking, document or instrument to which that Person is a party or by which it or any of its properties is bound, or to which it or any of
its properties is subject (including, without limitation, any restrictive covenant affecting such Person or any of its properties). 
 “Court Order” means any judgment, writ, injunction, decree, rule or regulation of any court or Governmental Authority binding upon or applicable the Person in question. 
 “Distributions”, with respect to Borrower, means any distribution of money to any equity owner or Affiliate of Borrower,
whether in the form of earnings, income or other proceeds, repayment of any principal or interest on any loan or other advance made to Borrower by any such equity owner or Affiliate, or any loan or advance by Borrower of any funds to any such equity
owner or Affiliate. 
  

 3 

 “DOL” means the United States Department of Labor and any successor
department or agency. 
 “Dollars” and “$” means the lawful money of the United States of America.

 “Effective Gross Income” means the sum of items (a) and (b) in the definition of Net Operating
Income. 
 “Environmental Laws” has the meaning set forth in Section 5.19. 
 “Environmental Lien” means a Lien in favor of any Governmental Authority for (a) any liability under Environmental
Laws, or (b) damages arising from, or costs incurred by such Governmental Authority in response to, a Release or threatened Release of a Contaminant into the environment. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor
statute. 
 “ERISA Affiliate” means, as to any Person, any (a) corporation which is, becomes, or is
deemed to be a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Internal Revenue Code) as such Person, (b) partnership, trade or business (whether or not incorporated) which is, becomes or is
deemed to be under common control (within the meaning of Section 414(c) of the Internal Revenue Code) with such Person, (c) other Person that is, becomes or is deemed to be a member of the same “affiliated service group” (as
defined in Section 414(m) of the Internal Revenue Code) as such Person, or (d) any other organization or arrangement described in Section 414(o) of the Internal Revenue Code which is, becomes or is deemed to be required to be
aggregated pursuant to regulations issued under Section 414(o) of the Internal Revenue Code with such Person pursuant to Section 414(o) of the Internal Revenue Code. 
 “Event of Default” means any of the occurrences set forth in Article X after the expiration of any applicable
grace period expressly provided therein. 
 “Federal Reserve Board” means the Board of Governors of the
Federal Reserve System or any governmental authority succeeding to its functions. 
 “Financial Statements”
has the meaning given to such term in Section 6.1(b). 
 “FIRREA” means the Financial
Institutions Recovery, Reform and Enforcement Act of 1989, as amended from time to time. 
 “Fiscal Quarter”
means each three month period ending on March 31, June 30, September 30 and December 31. 
 “Fiscal Year” means the fiscal year of Borrower, which shall be the twelve (12) month period ending on the last day of December in each year. 
  

 4 

 “GAAP” means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board, or in such other statements by such other entity
as may be in general use by significant segments of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “Governmental Authority” means any nation or government, any federal, state, local, municipal or other political subdivision thereof or any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government. 
 “Indebtedness”, as applied to any
Person (and without duplication), means (a) the principal amount of all indebtedness of such Person for borrowed money, whether or not subordinated and whether with or without recourse beyond any collateral security, (b) the principal
amount of all indebtedness of such Person evidenced by securities or other similar instruments, (c) all reimbursement obligations and other liabilities of such Person with respect to letters of credit or banker’s acceptances issued for
such Person’s account, (d) all obligations of such Person to pay the deferred purchase price of property or services, (e) all obligations in respect of both operating and Capital Leases of such Person, (f) all Accommodation
Obligations of such Person, (g) all indebtedness, obligations or other liabilities of such Person or others secured by a Lien on any asset of such Person, whether or not such indebtedness, obligations or liabilities are assumed by, or are a
personal liability of, such Person (including, without limitation, the principal amount of any assessment or similar indebtedness encumbering any property (except for non-delinquent, accrued but unpaid real estate taxes as provided under
Section 9.2)), (h) all indebtedness, obligations or other liabilities (other than interest expense liability) in respect of interest rate swap, collar, cap or similar agreements providing interest rate protection and foreign
currency exchange agreements, (i) ERISA obligations currently due and payable, and (j) without duplication or limitation, all liabilities and other obligations included in the financial statements (or notes thereto) of such Person as
prepared in accordance with GAAP. 
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended from time to time hereafter, and any successor statute. 
 “IRS” means the Internal Revenue Service
and any Person succeeding to the functions thereof. 
 “KBS REIT” means KBS Real Estate Investment Trust,
Inc., a Maryland corporation. 
 “KBS REIT Compliance Certificate” means a certificate, certifying as to the
matters set forth therein, signed on behalf of KBS REIT by an authorized signatory having primary responsibility with respect to the matters set forth therein. 
 “Lease” means a tenant lease of all or any portion of the Property. 
  

 5 

 “Liabilities and Costs” means all claims, judgments, liabilities,
obligations, responsibilities, losses, damages (including lost profits), punitive or treble damages, costs, disbursements and expenses (including, without limitation, reasonable attorneys’, experts’ and consulting fees and costs of
investigation and feasibility studies), fines, penalties and monetary sanctions, interest, direct or indirect, known or unknown, absolute or contingent, past, present or future. 
 “Lien” means any deed of trust, mortgage, pledge, hypothecation, assignment, deposit arrangement, security interest,
encumbrance (including, but not limited to, easements, rights-of-way, zoning restrictions and the like), lien (statutory or other), preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever,
including without limitation any conditional sale or other title retention agreement, the interest of a lessor under a Capital Lease, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any
financing statement or document having similar effect (other than a financing statement filed by a “true” lessor pursuant to the Uniform Commercial Code) naming the owner of the asset to which such Lien relates as debtor, under the Uniform
Commercial Code or other comparable law of any jurisdiction. 
 “Loan” means the principal sum that Lender
agrees to lend and Borrower agrees to borrow pursuant to the terms and conditions of this Agreement: Sixty-Eight Million Four Hundred Thousand Dollars ($68,400,000). 
 “Loan Commitment” means the then outstanding principal balance under the Note. 
 “Loan Constant” means a fraction, expressed as a percentage, determined by dividing the Net Operating Income of
the Property by the Loan Commitment at the time of determination. 
 “Loan Documents” means this Agreement,
the Note, the Security Instrument, all other agreements, instruments and documents (together with amendments and supplements thereto and replacements thereof) now or hereafter executed by Borrower which evidence or secure the Obligations.

 “Major Agreements” means, at any time, (a) each cross-easement, restrictions or similar agreement
encumbering or affecting the Property and any adjoining property, and (b) except as otherwise noted in Section 3.3(d)(ii), each property management agreement and leasing agreement with respect to the Property entered into with any
Person. 
 “Major Lease” means any Lease (a) with respect to more than 15% of the net rentable space of
the Property, or (b) under which Borrower’s obligation as to the cost of tenant improvements exceeds 130% of the estimated tenant improvement allowance (per rentable square foot) as set forth in the then most recent Appraisal, or
(c) under which the (Net Effective Rental Rate) is less than 85% of the amount assumed for such Lease estimated effective in the then most recent Appraisal. 
  

 6 

 “Manager” means KBS Capital Advisors LLC, a Delaware limited liability
company, or any replacement asset manager of KBS REIT appointed in accordance with Section 8.4(b). 
 “Management Agreement” means the Advisory Agreement dated November 8, 2007 between Manager and KBS REIT. 
 “Material Adverse Effect” means (a) with respect to Borrower, a material adverse effect upon the condition (financial or otherwise), operations, performance, properties or prospects of Borrower
that could reasonably be expected to impair, to a material extent, Borrower’s ability to perform its obligations under the Loan Documents; and (b) with respect to the Property, a material adverse effect upon the physical condition of the
Property, or upon its operations, performance or prospects, that reduces the Appraised Value of the Property to an amount that is less than eighty percent (80%) of the Appraised Value of the Property as of the date hereof. The phrase “has
a Material Adverse Effect” or “will result in a Material Adverse Effect” or words substantially similar thereto shall in all cases be intended to mean “has resulted, or will or could reasonably be anticipated to result, in a
Material Adverse Effect”, and the phrase “has no (or does not have a) Material Adverse Effect” or “will not result in a Material Adverse Effect” or words substantially similar thereto shall in all cases be intended to mean
“does not or will not or could not reasonably be anticipated to result in a Material Adverse Effect”. 
 “Maturity Date” has the meaning given to such term in Section 2.1(c). 
 “Multiemployer Plan” means an employee benefit plan defined in Section 4001(a)(3) of ERISA which is, or within the immediately preceding six (6) years was, contributed to by a Person or an ERISA Affiliate of such
Person. 
 “Net Effective Rental Rate” means the actual recurring contractual base rental payment required to
be paid by a tenant under a Lease, taking into account any adjustment regarding Concessions. 
 “Net Operating
Income,” solely for purposes of Section 2.1(c) of this Agreement, shall mean: (a) total monthly base rent payable, as of the date of determination and at the Net Effective Rental Rate, by tenants (not in default or in bankruptcy)
under Leases entered into in compliance with Section 3.3(b), multiplied times twelve, excluding security or other deposits, late fees, lease termination or other similar charges, delinquent rent recoveries, unless previously reflected in
reserves, or any other items of a non-recurring nature; plus (b) monthly expense reimbursements payable by such tenants, multiplied times twelve; minus the sum of the actual reasonable Operating Expenses for the calendar month
immediately preceding the date of determination multiplied by twelve (and adjusted for the impacts of any changes in occupancy during such period). 
 “Note” means the Promissory Note Secured by Deed of Trust, in the amount of the Loan, executed by Borrower in favor of Lender and dated the date hereof, as the same may be amended, supplemented,
replaced or modified from time to time. 
  

 7 

 “Obligations” means, from time to time, all Indebtedness of Borrower
owing to Lender, to any Person entitled to indemnification pursuant to Section 11.2, or to any of their respective successors, transferees or assigns, of every type and description, whether or not evidenced by any note, guaranty or other
instrument, arising under or in connection with this Agreement or any other Loan Document, whether or not for the payment of money, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due,
now existing or hereafter arising and however acquired. The term includes, without limitation, all interest, charges, expenses, fees, reasonable attorneys’ fees and disbursements, reasonable fees and disbursements of expert witnesses and other
consultants, and any other sum now or hereinafter chargeable to Borrower under or in connection with this Agreement or any other Loan Document. (Notwithstanding the foregoing definition of “Obligations”, Borrower’s obligations under
any environmental indemnity agreement constituting a Loan Document, or any environmental representation, warranty, covenant, indemnity or similar provision in this Agreement or any other Loan Document, shall be secured by the Property only to the
extent, if any, specifically provided in the Security Instrument). 
 “Operating Expenses” shall mean all
reasonable operating expenses of the Property, including, without limitation, those for maintenance, property management (subject to an imputed minimum of 2% of Effective Gross Income), repairs, annual taxes, bond assessments, ground lease payments
(if any), insurance, utilities and other annual expenses (but not costs of tenant retrofit, lease commission, capital improvements or capital repairs) and non-capital reserves that are customary and standard for properties of this type. Operating
Expenses for this purpose shall not include any interest or principal payments on the Loan or any allowance for depreciation; recurring expenses, which are not paid monthly, shall be accounted for monthly, without duplication, on an accrual basis.

 “Operating Statements” has the meaning given to such term in Section 6.1(a). 
 “Original Appraisal” means the Appraisal prepared by Cushman & Wakefield of Illinois, Inc., Valuation Services,
Capital Markets Group, dated September 28, 2007. 
 “Other Security Instrument” means any other mortgage
or deed of trust which is now or hereafter cross-collateralized with the Security Instrument, including, without limitation, the Other Security Instruments which secure the loans contemplated on Schedule 11.22 attached hereto. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any Person succeeding to the functions thereof. 
 “Permit” means any permit, approval, authorization, license, variance or permission required from a Governmental
Authority under an applicable Requirement of Law. 
  

 8 

 “Permitted Liens” means: 
 (a) Liens (other than Environmental Liens and any Lien imposed under ERISA) for taxes, assessments or charges of any Governmental
Authority or claims not yet due; 
 (b) Liens (other than any Lien imposed under ERISA) incurred or deposits made in the
ordinary course of business (including without limitation surety bonds and appeal bonds) in connection with workers’ compensation, unemployment insurance and other types of social security benefits or to secure the performance of tenders, bids,
leases, contracts (other than for the repayment of Indebtedness), or statutory obligations; 
 (c) any laws, ordinances,
easements, rights of way, restrictions, exemptions, reservations, conditions, limitations, covenants or other matters described as exceptions on Schedule B of the title insurance policies described in Section 4.1(b)(ii) which are
delivered to and accepted by Lender in satisfaction of the applicable condition to the disbursement under the Loan; 
 (d)
Liens imposed by laws, such as mechanics’ liens and other similar liens arising in the ordinary course of business which secure payment of obligations not more than thirty (30) days past due; 
 (e) Leases in effect on the Closing Date and any Leases entered into in the future that are not prohibited by the terms of the Loan
Documents; and 
 (f) any other Liens that are accepted by Lender. 
 “Permitted REIT Distributions” means distributions (directly or indirectly) by Borrower to KBS REIT to the extent that,
if not distributed to KBS REIT: 
 (a) the REIT would, as the result of the failure of Borrower to receive cash from the
Property, be unable to distribute all KBS REIT taxable income with respect to the Property, or 
 (b) KBS REIT would, as a
result of the failure of Borrower to receive cash from the Property, fail to satisfy its obligations to pay REIT Operating Expenses. 
 “Person” means any natural person, employee, corporation, limited partnership, general partnership, joint stock company, limited liability company, joint venture, association, company, trust, bank, trust company, land
trust, business trust or other organization, whether or not a legal entity, or any other non-governmental entity, or any Governmental Authority. 
 “Plan” means an employee benefit plan defined in Section 3(3) of ERISA (other than a Multiemployer Plan) in respect of which Borrower or an ERISA Affiliate, as applicable, is an
“employer” as defined in Section 3(5) of ERISA. 
 “Proceedings” means, collectively, all
actions, suits, arbitrations and proceedings, at law, in equity or otherwise, before, and investigations commenced or threatened by or before, any court or Governmental Authority with respect to a Person. 
  

 9 

 “Property” shall have the meaning set forth in the recitals. 

“Protective Advance” means all sums expended as determined by Lender to be necessary to: (a) protect the
priority, validity and enforceability of the Lien on, and security interests in, the Collateral and the instruments evidencing or securing the Obligations, or (b) prevent the value of the Collateral from being materially diminished (assuming
the lack of such a payment within the necessary time frame could potentially cause such Collateral to lose value), or (c) protect the Collateral from being materially damaged, impaired, mismanaged or taken, including, without limitation, any
amounts expended in accordance with Section 11.1 or post-foreclosure ownership, maintenance, operation or marketing of the Property. 
 “Purchase Price” means $135,800,000. 
 “Regulations G, T, U and
X” mean such Regulations of the Federal Reserve Board as in effect from time to time. 
 “REIT Operating
Expenses” means the Allocated Share of all actual costs, expenses and/or amounts incurred by, or payable or reimbursable by, KBS REIT or the REIT Operating Partnership for any of the following: (a) charges and fees charged by banks,
audit fees, tax preparation fees, legal fees, accounting consulting fees related to emerging technical pronouncements, tax consulting fees relating to Real Estate Investment Trust issues, due diligence costs and fees arising from state and local
taxes, fees and expenses incurred in connection with annual corporate filings, and local, state and federal income taxes, and (b) professional fees related to corporate structuring and/or filings, consulting fees and filing fees arising from
SEC reporting requirements including, without limitation, 10K filings, 10Q filings, and 8k filings, consulting fees and other fees and costs related to Sarbanes- Oxley 404 compliance requirements. 
 “REIT Operating Partnership” shall mean KBS Limited Partnership, a Delaware limited partnership. 
 “Release” means the release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal,
leaching or migration into the indoor or outdoor environment or into or out of any property, including the movement of Contaminants through or in the air, soil, surface water, groundwater or property. 
 “Remedial Action” means any action required by applicable Environmental Laws to (a) clean up, remove, treat or in
any other way address Contaminants in the indoor or outdoor environment; (b) prevent the Release or threat of Release or minimize the further Release of Contaminants so they do not migrate or endanger or threaten to endanger public health or
welfare or the indoor or outdoor environment; or (c) perform pre-remedial studies and investigations and post-remedial monitoring and care. 
 “Reportable Event” means any of the events described in Section 4043(b) of ERISA, other than an event for which the thirty (30) day notice requirement is waived by regulations. 

 

 10 

 “Requirements of Law” mean, as to any Person, the charter and by-laws,
partnership agreement or other organizational or governing documents of such Person, and any law, rule or regulation, Permit, or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon
such Person or any of its property or to which such Person or any of its property is subject, including without limitation, applicable securities laws, Regulations G, T, U and X, FIRREA and any certificate of occupancy, zoning ordinance, building,
environmental or land use requirement or Permit or occupational safety or health law, rule or regulation. 
 “Security
Instrument” means the deed of trust or mortgage, executed by Borrower, for the benefit of Lender and dated on or about the date hereof, as the same may be amended or modified from time to time. 
 “Single Purpose Entity” means a corporation or other limited liability organization which, at all times since its
formation and thereafter, was and will be organized solely for the purpose of acquiring and developing its interest in the Property. 
 “SNDA” has the meaning given to such term in Section 3.3(c). 
 “Solvent” means, as to any Person at the time of determination, that such Person (a) owns property the value of which (both at fair valuation and at present fair salable value and taking into account (i) the value
of such Person’s rights of reimbursement, contribution, subrogation and indemnity against any other Person, and (ii) the value of any property, owned by another Person, that secures any liabilities of the Person whose Solvency is being
determined) is equal to or greater than the amount required to pay all of such Person’s liabilities (including contingent liabilities and debts); (b) is able to pay all of its debts as such debts mature; and (c) has capital sufficient
to carry on its business and transactions and all business and transactions in which it is about to engage. 
 “Taxes” means all federal, state and local net income taxes. 
 “Termination Event”
means (a) any Reportable Event, (b) the withdrawal of a Person, or an ERISA Affiliate from a Benefit Plan during a plan year in which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, (c) the
occurrence of an obligation arising under Section 4041 of ERISA of a Person or an ERISA Affiliate to provide affected parties with a written notice of an intent to terminate a Benefit Plan in a distress termination described in
Section 4041(c) of ERISA, (d) the institution by the PBGC of proceedings to terminate any Benefit Plan under Section 4042 of ERISA, (e) any event or condition which constitutes grounds under Section 4042 of ERISA for the
appointment of a trustee to administer a Benefit Plan, (f) the partial or complete withdrawal of such Person or any ERISA Affiliate from a Multiemployer Plan, or (g) the adoption of an amendment by any Person or any ERISA Affiliate to
terminate any Benefit Plan. 
 “Uniform Commercial Code” means the Uniform Commercial Code as in effect on
the date hereof in the State of California. 
  

 11 

 “Unmatured Event of Default” means an event which, with the giving of
notice or the lapse of time, or both, would constitute an Event of Default. 
 1.2 Computation of Time Periods. 
 In this Agreement, in the computation of periods of time from a specified date to a later specified date, unless otherwise specified, the
word “from” means “from and including” and the words “to” and “until” each mean “to and including”. Periods of days referred to in this Agreement shall be counted in calendar days unless Business
Days are expressly prescribed. 
 1.3 Terms. 
 (a) Any accounting terms used in this Agreement which are not specifically defined shall have the meanings customarily given them in
accordance with GAAP. 
 (b) Any time the phrase “to the best of Borrower’s knowledge” or a phrase similar
thereto is used herein, it means: “to the actual knowledge of the then executive or senior officers of Borrower, after reasonable inquiry of those officers, employees or contractors of Borrower who could reasonably be anticipated to have
knowledge with respect to the subject matter or circumstances in question and after review of those documents or instruments which could reasonably be anticipated to be relevant to the subject matter or circumstances in question.” 

(c) Any time the word “or” is used herein, unless the context otherwise clearly requires, it has the inclusive meaning
represented by the phrase “and/or”. The words “hereof”, “herein”, “hereby”, “hereunder” and similar terms refer to this Agreement as a whole and not to any particular provision of this Agreement.
Article, section, subsection, clause, exhibit and schedule references are to this Agreement unless otherwise specified. Any reference in this Agreement to this Agreement or to any other Loan Document includes any and all amendments, modifications,
supplements, renewals or restatements thereto or thereof, as applicable. 
 ARTICLE II 
 THE LOAN 
 2.1 Loan Disbursements
and Repayment. 
 (a) Disbursement. 
 Subject to the terms and conditions set forth in this Agreement, Lender hereby agrees to advance the proceeds of the Loan, in the amount of Sixty-Eight Million, Four Hundred Thousand Dollars ($68,400,000), to, or for
the benefit, of Borrower, on the Closing Date. 
 (b) General. 
 The Loan may be voluntarily prepaid, in whole or in part, pursuant to Section 2.4(a), but may not be reborrowed, except as provided in
Section 2.6 with respect to amounts payable to Lender under Section 6 of Exhibit A to the Note or Section 2.6 below. The principal balance of the Loan 

  

 12 

 
shall be payable in full on the Maturity Date subject to Borrower’s right to extend the Maturity Date in accordance with the provisions of
Section 2.1(c) below. The Loan will be evidenced by the Note. 
 (c) Term; Extension Option. 
 The outstanding balance of the Loan, together with all accrued and unpaid interest and other amounts accrued and unpaid under the Loan
Documents, shall be payable in full on the earliest to occur of (i) February 13, 2008, (ii) the acceleration of the Loan pursuant to Section 10.2(a), or (iii) Borrower’s written notice to Lender (pursuant
to Section 2.4(a)) of Borrower’s election to prepay all accrued Obligations (said earliest date referred to herein as the “Maturity Date”); provided, however, that Borrower shall have the right to one
(1) extension of the date referred to in clause (i) above, for an additional sixty (60) day period (i.e., to April 14, 2008), as follows: 
 (i) Borrower shall give Lender written notice of Borrower’s request for an extension of the Maturity Date not earlier than forty-five
(45 days), nor later than thirty (30) days, prior to the original Maturity Date; 
 (ii) As of the date of such notice,
and as of the original Maturity Date, there shall exist no Unmatured Event of Default or Event of Default (provided that Borrower shall have an opportunity to cure such Unmatured Event of Default prior to such Maturity Date to the extent of
applicable cure periods under this Agreement or the applicable Loan Document); 
 (iii) At Lender’s request, Borrower
shall have caused to be issued to Lender, at Borrower’s sole cost and expense, appropriate endorsements to Lender’s policy of title insurance; 
 (iv) There shall have been no change in the financial condition of Borrower, or in the condition of the Property, from that which existed on the Closing Date which, as determined by Lender in its reasonable
discretion, has a Material Adverse Effect; 
 (v) Borrower shall have executed and delivered to Lender such documentation as
Lender may reasonably request for the purpose of confirming the existence and priority of Lender’s Liens securing the Obligations in connection with the requested extension; 
 (vi) The Loan Commitment, as determined by Lender in its reasonable discretion based on information available to it at the time, shall not
exceed fifty percent (50%) of the Appraised Value of the Property, provided that at Borrower’s election (and expense) Lender shall obtain a new Appraisal of the Property in order to make such determination; 
 (vii) The Property shall have a Loan Constant of not less than fifteen percent (15%); and Borrower shall provide Lender with sufficient
information (including, without limitation, a detailed current rent roll and a current historical operating statement) necessary to determine the then Loan Constant; 
  

 13 

 (viii) Borrower shall have caused KBS REIT to deliver to Lender an executed KBS REIT
Compliance Certificate confirming that KBS REIT is in compliance with each of the covenants set forth on Exhibit F. KBS REIT’s compliance with the referenced covenants (and delivery of a KBS REIT Compliance Certificate evidencing
compliance) shall be a condition to Borrower’s right to exercise the extension option contained in this Section 2.1(c) notwithstanding the fact that the Compliance Ratio may be less than or equal to forty-five percent
(45%) (i.e., whether or not KBS REIT would otherwise be required to comply with such covenants); 
 (ix) Borrower shall
have delivered to Lender a fully executed loan application, which application must include the material business terms for a take-out loan with a commitment amount not less than the Loan; and 
 (x) Borrower shall pay to Lender a non-refundable extension fee in an amount equal to 0.1% of the outstanding Loan amount immediately
after the extension of the Maturity Date as provided herein. 
 Notwithstanding the foregoing, Borrower shall have the right
to repay principal outstanding under the Loan in such amount as may be required to reduce the Loan Commitment, after giving effect to the required reduction, to an amount such that Borrower is in compliance with subsections (vi) and
(vii) above. 
 (d) Borrower Representatives. 
 Borrower shall provide Lender with documentation satisfactory to Lender indicating the names of those representatives of Borrower
authorized to sign any Borrower’s Certificate, Fixed Rate Notice (as defined in the Note) or to effect notices, requests and acceptances of telephonic quotes of interest rates, and Lender shall be entitled to rely on such documentation until
notified in writing by Borrower of any change(s) of the persons so authorized; provided that there shall at all times be at least one individual authorized on behalf of Borrower to effect notices, requests and acceptances of telephonic
quotes of interest rates. Lender shall be entitled to act on the instructions of anyone identifying himself or herself as one of the Persons so authorized, and Borrower shall be bound thereby in the same manner as if such Person or Persons were
actually so authorized. Borrower agrees to indemnify, defend and hold Lender harmless from and against any and all Liabilities and Costs which may arise or be created by the acceptance of instructions from any such Borrower representative, including
in response to any telephonic notice, request, or acceptance relating to any telephonic quote of an interest rate, unless caused by the gross negligence or willful misconduct of Lender. 
 2.2 Fees; Expenses. 
 (a) Fees and Expenses. 
 Not later than the Closing Date, Borrower shall pay to Lender a non-refundable Loan
fee in an amount equal to $85,500 plus certain costs and expenses (as set forth on Schedule 2.2(a)). 
  

 14 

 (b) Payment of Fees. 
 The fees described in the preceding paragraph represent compensation for services rendered and to be rendered separate and apart from the
lending of money or the provision of credit and do not constitute compensation for the use, detention or forbearance of money, and the obligation of Borrower to pay such fees shall be in addition to, and not in lieu of, the obligation of Borrower to
pay interest, other fees and expenses otherwise described in the Loan Documents. All fees shall be payable when due in immediately available funds and in Dollars, and shall be non-refundable when paid. If Borrower fails to make timely payment of
fees or expenses specified or referred to in this Agreement due to Lender, the amount due shall bear interest until paid at the Variable Rate and, after ten (10) days at the Alternate Rate (as each such capitalized term is defined in the Note),
but not to exceed the maximum rate permitted by applicable law, and shall constitute part of the Obligations, secured by the Property. 
 2.3
Interest on the Loan. 
 Interest on the Loan shall accrue as set forth in the Note. 
 2.4 Payments. 
 (a)
Voluntary Prepayments. 
 Borrower may, upon not less than three (3) Business Days prior written notice to Lender
not later than 11:00 A.M. (Los Angeles time) on the date given, at any time and from time to time, prepay all or any portion of the Loan, subject to the terms of Section 2.4(d). Any notice of prepayment given to Lender under this
Section 2.4(a) shall specify the date of prepayment and the principal amount of the prepayment. In the event of a prepayment of the Loan, Borrower shall concurrently pay any Fixed Rate Price Adjustment (as defined in the Note) payable in
respect thereof. 
 (b) Credit for Payments. 
 All payments of principal, interest and fees hereunder payable to Lender shall be made without condition or reservation of right and free
of set-off or counterclaim, in Dollars, either by authorized debit to Borrower’s Account or by wire transfer (pursuant to Lender’s written wire transfer instructions) of immediately available funds, to Lender, not later than 11:00 A.M.
(Los Angeles time) on the date due; and funds received by Lender after that time and date shall be deemed to have been paid on the next succeeding Business Day. 
 (c) Payments on Non-Business Days. 
 Whenever any payment to be made by Borrower hereunder or under any other Loan Document is stated to be due on a day which is not a Business Day, payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of the payment of interest hereunder. 
  

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 (d) Exit Fee. 
 Concurrently with Borrower’s repayment of the Loan, in whole or in part, and whether or not the Loan is repaid or otherwise satisfied
(including in connection with a foreclosure or a deed in lieu thereof) on or before the Maturity Date, in addition to any Fixed Rate Price Adjustment then due, Borrower shall pay to Lender an exit fee in an amount equal to one-eighth of one percent
(0.125%) of the amount of the Loan being repaid at such time (the “Exit Fee”). Notwithstanding the foregoing, if Borrower repays (i) all or any portion of the Loan with proceeds from replacement financing provided by Lender or
(ii) the entire Loan with proceeds from the sale of the Property to a bona-fide thirty-party (i.e., non-Affiliate) purchaser, then Borrower shall have no obligation to pay any Exit Fee with respect to that portion of the Loan that is repaid
with such proceeds. In addition, Borrower shall have no obligation to pay any Exit Fee (a) with respect to a portion of the Loan repaid on the Maturity Date with funds other than refinancing proceeds provided by Lender unless Lender has
provided Borrower a reasonable quote for replacement financing, or (b) with respect to a portion of the Loan repaid for the sole purpose of reducing the outstanding amount of the Loan to forty-five percent (45%) of the lesser
of (i) the Appraised Value of the Property and (ii) the Acquisition Cost of the Property; provided in all circumstances, the Exit Fee shall be deemed earned when paid and non-refundable. For purposes hereof, a quote for replacement
financing shall be deemed reasonable if it is consistent with quotes being provided by Lender to other borrowers similarly situated to Borrower at the time of determination with respect to the type of loan being requested, including, without
limitation, property type, loan terms and loan structure. 
 2.5 Increased Capital. 
 If either (a) the introduction of or any change in or in the interpretation of any law or regulation after the Closing Date or
(b) compliance by Lender with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law and whether or not the failure to comply therewith would be unlawful) made or issued after the
Closing Date affects or would affect the amount of capital required or expected to be maintained by Lender or any corporation controlling Lender, and Lender determines that the amount of such capital is increased by or based upon the existence of
Lender’s obligations under the Loan, then, upon demand by Lender, Borrower shall immediately pay to Lender, from time to time as specified by Lender, additional amounts sufficient to compensate Lender in the light of such circumstances, to the
extent that Lender reasonably determines such increase in capital to be allocable to the existence of Lender’s obligations under the Loan; provided, however, that Lender may not claim under this Section 2.5 any such
additional amount attributable to any period preceding the date that is ninety (90) days prior to the date of its demand. A certificate as to such amounts submitted to Borrower by Lender shall, in the absence of manifest error, be conclusive
and binding for all purposes. 
 2.6 Notice of Increased Costs. 
 Lender agrees that, as promptly as reasonably practicable after it becomes aware of the occurrence of an event or the existence of a
condition which would cause it to be affected by any of the events or conditions described in Section 6 of Exhibit A to the Note or Section 2.5 hereunder, it will notify Borrower of such event and the possible effects thereof,
provided that the failure to provide such notice shall not affect Lender’s rights to reimbursement provided for 

  

 16 

 
herein. To the extent of any amount demanded by Lender to be reimbursed under Section 6 of Exhibit A to the Note or Section 2.5 hereunder,
Lender agrees to lend such amount to Borrower, whether or not the lending of such amount would constitute a reborrowing of Loan funds or would cause the outstanding principal amount of the Loan to exceed the Loan (and which shall constitute in all
respects disbursements of Loan proceeds), subject to (a) Borrower’s execution and delivery of such amendments to the Note, Security Instrument (including the payment of any applicable mortgage recording tax and/or other costs) and other
Loan Documents, and provision to Lender of such endorsements to Lender’s policies of title insurance, as Lender may reasonably deem necessary under the circumstances, and (b) satisfaction of all other conditions precedent to the making of
disbursements under the Loan. 
 2.7 Full Repayment and Reconveyance or Release. 
 Upon receipt of all sums owing and outstanding under the Loan Documents (excluding any loans secured by the Security Instrument other than
the Loan and excluding any Other Security Instrument and the loan documents evidencing the loans secured thereby), then provided no Event of Default exists under the Loan Documents (including any Other Security Instrument and the loan documents
evidencing the loans secured thereby), Lender shall issue a full reconveyance or release of the Property from the lien of the Security Instrument; provided, however, that all of the following conditions shall be satisfied at the time
of, and with respect to, such reconveyance or release: Lender shall have received all escrow, closing and recording costs, the costs of preparing and delivering such reconveyance or release and the cost of any title insurance amendments or
endorsements requested by Lender. 
 ARTICLE III 
 PROPERTY REQUIREMENTS AND REPRESENTATIONS 
 3.1 Representations Regarding the Property.

 Borrower represents and warrants to Lender that Borrower has, prior to the Closing Date, delivered to Lender, with respect
to the Property: 
 (a) To the extent available, operating statements for the previous two (2) years; 
 (b) A current rent roll, in form satisfactory to Lender, and certified by Borrower to be true and correct to the best of Borrower’s
knowledge and, to the extent available, an uncertified two-year operating and occupancy history; 
 (c) A survey certified by
a surveyor licensed in the applicable jurisdiction to have been prepared in accordance with the then effective Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys, including a certification that the Property is not located in a
Special Flood Hazard Area as defined by the Federal Insurance Administration; 
 (d) A “Phase I” environmental
assessment not more than twelve (12) months old; 
  

 17 

 (e) Copies (true and correct, to the best of Borrower’s knowledge) of all Major
Agreements and Leases affecting the Property; and 
 (f) Copies (true and correct, to the best of Borrower’s knowledge)
of engineering, mechanical, structural or maintenance studies performed (if not previously performed, such studies as shall be required by Lender). 
 3.2 Appraisals. 
 The Appraised Value of the Property shall be determined or redetermined, as applicable,
under each of the following circumstances (but not more than once in any six (6) month period): 
 (a) Lender will
determine the Appraised Value of the Property for purposes of the Closing Date; 
 (b) Intentionally Omitted; 
 (c) At any time and from time to time, upon five (5) Business Days’ prior written notice to Borrower, Lender may redetermine the
Appraised Value of the Property in any of the following circumstances: 
 (i) if a major casualty, condemnation,
contamination or violation of any Requirements of Law occurs, or is discovered to exist, with respect to the Property, or if Lender reasonably believes that a Material Adverse Effect may have occurred; or 
 (ii) if necessary in order to comply with Requirements of Law applicable to Lender. 
 Lender shall notify Borrower of any change in Appraised Value. The costs of any Appraisal commissioned pursuant to this Section 3.2 shall be paid by
Borrower. 
 3.3 Covenants Relating to the Property. 
 (a) Insurance, Casualty. 
 In addition to such title insurance as Borrower is required to maintain in respect of the Property, Borrower shall maintain or cause to be maintained insurance covering the Property, at Borrower’s sole expense,
with licensed insurers approved by Lender, the following policies of insurance in form and substance satisfactory to Lender: 
 (i) At all times, any real property under construction at the Property shall be covered by a policy of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against
damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). 
  

 18 

 (ii) A policy of flood insurance, as required by applicable governmental regulations or
as deemed reasonably necessary by Lender. 
 (iii) A policy of commercial general liability insurance with limits as
reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. 
 Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to
Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable
Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other
hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and
the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such
coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT with respect to any uninsured loss caused by terrorism. 
 (b) Leases; Lease Approval; Lease Termination. 
 (i) Unless otherwise consented to by
Lender in writing, all Leases entered into after the date of this Agreement shall (A) be to unaffiliated third parties and under market terms (provided, “market terms” shall not be deemed to require market rents), including, without
limitation, those relating to insurance, waiver of claims, damage and destruction, condemnation, notice to mortgagee and subordination and attornment, (B) provide for uses of the Property that are consistent with first-class management thereof,
and (C) be on a standard form lease reasonably approved by Lender subject to modification as reasonably required by Borrower. Additionally, Borrower shall not execute any Major Lease nor materially modify or voluntarily terminate any such Major
Lease (except for terminations by reason of a material default), in each case without Lender’s prior consent, not to be unreasonably withheld. 
 (ii) With respect to Major Leases, if Lender’s consent thereto is required pursuant to clause (i) above, or if Borrower has requested Lender’s consent to a Lease which does not comply with the
requirements set forth in Section 3.3(b)(i), if Lender has not notified Borrower of its disapproval of such proposed Lease within five (5) Business Days after Lender’s confirmation of receipt of such proposed Lease (together
with a lease summary and also, in the case of a Major Lease, the financial statements and market comparisons as referenced below to the extent available) and a transmittal letter requesting that Lender review such proposed Lease and approve or
disapprove such proposed Lease within such 5-Business day period and notifying Lender that a failure to respond within five (5) Business Days shall constitute a deemed approval, Lender shall be deemed to have consented to such proposed Lease.

  

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 (iii) Whether Lender approval is required or not, Borrower shall promptly provide Lender
with (1) a copy of every Lease executed with tenants occupying 10,000 square feet or more of the Property, and (2) any and all financial information received by Borrower from any such tenants. 
 (iv) If Borrower receives any sums in consideration of any termination (or the release or discharge of any lessee) modification or
amendment of any Lease (any such funds, a “Termination Payment”), then if such Termination Payment is less than $100,000 such Termination Payment may be retained by the Borrower, and if such Termination Payment is equal to or
greater than $100,000, Borrower promptly shall deliver such Termination Payment to Lender to be held in a blocked and pledged cash collateral account to be then applied by Lender as follows: 
 (1) Upon receipt of such Termination Payment, Lender shall determine the then loan-to-value ratio based upon Loan amount at such time
(disbursed and undisbursed) to the market value of the Property, as such market value is reasonably determined by Lender based upon all information then available to Lender and taking into account the Lease termination or modification which
generated the Termination Payment (such determination of value, the “Desktop Valuation”). If Lender determines, based upon such Desktop Valuation, that the loan-to-value ratio is greater than 49.93%, then Lender may apply all or a
portion of such Termination Payment to repay principal outstanding under the Loan in order that such initial loan-to-value ratio may be achieved. However, if there are not sufficient funds in the Termination Payment to achieve such initial
loan-to-value ratio, Borrower shall have no obligation to remargin the Loan from its separate funds. 
 (2) If any portion of
the Termination Payment remains after application (or non-application) pursuant to subclause (1) above, the remaining balance shall be held by Lender in the cash collateral account and then disbursed by Lender to Borrower in order to pay Lender
approved re-tenanting costs with respect to the Property, subject to such reasonable conditions on disbursement as Lender may impose. After the affected premises has been re-leased, any balance remaining in such cash collateral account shall then be
disbursed to Borrower. 
 (3) Upon Borrower request, if made within ten (10) days following Lender’s determination
of the Desktop Valuation and notice to Borrower of same, Lender shall obtain, at Borrower’s cost and expense, a new Appraisal of the Property to be used in-lieu of the Desktop Valuation when determining the loan-to-value ratio for purposes of
this Section 3.3(b)(iv). 
  

 20 

 (c) SNDAs. 
 Borrower shall use commercially reasonable efforts to obtain, from each tenant leasing more than fifteen percent (15%) of the net
rentable area of the Property, a Subordination Agreement; Acknowledgment of Lease Assignment, Estoppel, Attornment and Non-Disturbance Agreement in the form of Exhibit B or in such other form as may be approved by Lender (each such agreement,
a “SNDA”). 
 (d) Major Agreements; Property Management Agreements. 
 (i) From and after the Closing Date, Borrower shall not enter into, or thereafter amend in any material manner or terminate, any Major
Agreement with respect to the Property, except upon thirty (30) days’ prior written notice to and approval by Lender. Borrower shall timely provide to Lender a copy of any such proposed Major Agreement. Any such proposed Major Agreement
submitted to Lender for approval and not disapproved by Lender within ten (10) days after receipt thereof shall be deemed to be approved by Lender. Without limiting in any way Lender’s approval rights with respect thereto, each proposed
Major Agreement shall provide for fees, reimbursements or other payments by Borrower to the other party thereto at levels not in excess of applicable market levels. 
 (ii) Notwithstanding that, for purposes of this Agreement, property management or leasing agreements entered into with CB Richard Ellis,
PM Realty or Jones Lang or any other property or leasing manager of equivalent experience and reputation managing or leasing real properties similar to the Property, do not constitute Major Agreements, if Borrower enters into such an agreement with
any such party, Borrower shall within ten (10) days after entering into, or modifying, such agreement, notify Lender of such event and provide Lender with a true and correct copy of such agreement or amendment, as the case may be. 

(e) Major Construction. 
 If Borrower intends to engage in any construction, remodeling or demolition project or series of related projects on the Property, other than Approved Projects (as defined below) with respect to the Property, the
aggregate cost of which will exceed $750,000 during the term of the Loan, Borrower shall first notify Lender, and such construction project shall be subject to Lender’s approval, which approval shall not be unreasonably withheld. Any proposed
construction project submitted in writing to Lender for approval and not disapproved by Lender within thirty (30) days after receipt thereof, shall be deemed to be approved by Lender. For purposes of this Section 3.3(e),
“Approved Projects” shall mean tenant improvements required under the terms of any Lease, except to the extent that such tenant improvements would involve the making of material structural alterations to the affected Property.

 (f) Property Taxes. 
 Lender is authorized to obtain and maintain, at Borrower’s expense, a tax service agreement with a third party vendor that will provide tax information, satisfactory to Lender, with respect to the Property.

  

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 (g) Security Instrument. 
 Borrower shall comply with all provisions of the Security Instrument encumbering the Property. 
 (h) Survey. 
 On or before the Closing Date, Borrower shall deliver to Lender a survey (or an update of a survey) with respect to the Property in the form described in Section 3.1(c), acceptable to Lender and title insurer. Such survey shall
be in form and substance substantially similar to the surveys delivered to Lender pursuant to Section 4.1(b)(iii). 
 ARTICLE
IV 
 DISBURSEMENT 
 4.1 Conditions to Disbursement. 
 The obligation of Lender to disburse the proceeds of the Loan shall be
subject to satisfaction of each of the following conditions precedent on or before the Closing Date (unless another date is specifically referenced below): 
 (a) Loan Documents. 
 Borrower shall have executed and delivered to Lender each of the
following, in form and substance acceptable to Lender: 
 (i) this Agreement; 
 (ii) the Note; 
 (iii) all Uniform Commercial Code financing statements as shall be requested by Lender; 
 (iv) the Security
Instrument; 
 (v) the Hazardous Materials Indemnity Agreement; 
 (vi) a tax service agreement with respect to the Property; 
 (vii) a borrowing certificate and all necessary authorizing resolutions authorizing Borrower’s execution, delivery and performance of
the Loan Documents; 
 (viii) any consent of the equity owners of Borrower, and its constituent entities, as applicable, which
may be required under the terms of its organizational documents; and 
 (ix) incumbency certificate with respect to each
officer of any corporation executing any Loan Document on behalf of Borrower, or other evidence, reasonably acceptable to Lender, of the authority of any individual executing a Loan Document on behalf of Borrower. 
  

 22 

 (b) Property Documents. 
 Lender shall have received the following documents with respect to the Property in form and substance acceptable to Lender: 
 (i) an Appraisal; 
 (ii) American Land Title Association Lender’s policy of title insurance or a commitment to issue such policy, from Chicago Title Insurance Company or another title company acceptable to Lender, in the amount of the Loan, insuring the
Security Instrument as a first Lien subject only to Permitted Liens, with endorsements as required by Lender and to the extent available, and otherwise in form and substance acceptable to Lender and Lender’s counsel; 
 (iii) if required to obtain acceptable title insurance, a survey (or update of a survey) in the form described in
Section 3.1(c); 
 (iv) an environmental audit for the Property, conducted by an environmental engineering firm
acceptable to Lender, and satisfactory evidence that Borrower and the Property are in compliance in all material respects with all Environmental Laws the violation of which could have a Material Adverse Effect; and 
 (v) such other documents with respect to the Property as are listed in Section 3.1. 
 (c) Organizational Documents. 
 Lender shall have received the following organizational documents with respect to Borrower (and each direct or indirect equity owner thereof other than the direct or indirect owners in KBS REIT), including a
certificate of Borrower’s managing member, general partner or an officer comparable thereto with respect to authorization, incumbency and all organizational documents: 
 (i) a certified copy of Borrower’s operating agreement; 
 (ii) certified copies of all filed organizational documents of Borrower (other than natural persons), certified by the Secretary of State
of the state under the laws of which Borrower is organized; and 
 (iii) for Borrower: (A) a Certificate of Status from
the Secretary of State of the state under the laws of which Borrower is organized (and, if generally available, a certificate with respect to Borrower’s status with respect to the taxing authorities of such jurisdiction); and (B) evidence
of qualification of Borrower and Certificate of Status from the Secretary of the state where the Property is located, with respect to Borrower. 
  

 23 

 (d) Fixed Rate Notice. 
 If applicable, Lender shall have delivered to Borrower a completed Fixed Rate Notice in the form attached to the Note. 
 (e) Solvency. 
 Borrower shall be Solvent. 
 (f) Material Adverse Changes. 
 No change, as determined by Lender, shall have occurred which has a Material Adverse Effect. 
 (g) Litigation Proceedings. 
 There shall not have been instituted or threatened any litigation or proceeding in any court or Governmental Authority affecting or threatening to affect Borrower or the Property which has a Material Adverse Effect.

 (h) Perfection of Liens. 
 The Security Instrument and financing statements shall have been recorded or filed, as applicable, and Lender shall have a valid,
perfected first priority lien on the Property. 
 (i) Indefeasible Title. 
 Borrower shall have good, indefeasible and merchantable title to the Property, free and clear of all Liens other than Permitted Liens.

 (j) No Event of Default. 
 After giving effect to the disbursement of the Loan proceeds, no Event of Default or Unmatured Event of Default shall exist. 

(k) Fees and Expenses. 
 Lender shall have received all fees then due, and, to the extent requested by Lender, all expenses of Lender shall have been paid by Borrower. 
 (l) Opinions of Counsel. 
 Lender shall have received the favorable opinion of Borrower’s California counsel as well as that of Borrower’s counsel located in the state in which the Property is located, each dated as of the Closing
Date and in form and substance satisfactory to Lender. 
  

 24 

 (m) Consents and Approvals. 
 All material licenses, permits, consents, regulatory approvals and corporate action necessary to enter into the financing transactions
contemplated by this Agreement shall have been obtained by Borrower. 
 (n) Insurance. 
 Lender shall have received evidence that Borrower has property, casualty and liability insurance satisfactory to Lender, and loss payable
endorsements in form and substance satisfactory to Lender naming Lender as loss payee with respect to property and casualty insurance shall have been executed and delivered to Lender, together with such certificates of insurance and binders as are
requested by Lender, all in substantial compliance with the provisions of Section 3.3(a). 
 (o) Due
Diligence. 
 Lender shall have obtained and completed its review of an Appraisal of the Property and determination of the
Appraised Value therefor, and Lender shall have completed such due diligence investigations as it deems necessary, and such review and investigations shall provide Lender with results and information which, in Lender’s determination, are
satisfactory to permit Lender to enter into this Agreement and fund the Loan. 
 (p) Representations and Warranties.

 All representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in
all material respects. 
 4.2 Intentionally Omitted. 
 4.3 Funds Transfer Disbursements. 
 (a) Borrower hereby authorizes Lender to disburse
the proceeds of the Loan pursuant to the Loan Documents, as requested by an authorized representative of Borrower, to any of the account(s) to be designated in the form attached hereto as Exhibit D. Borrower agrees to be bound by any
transfer request: (i) authorized or transmitted by Borrower; or (ii) made in Borrower’s name and accepted by Lender in good faith and in compliance with these transfer instructions, even if not properly authorized by Borrower.
Borrower further agrees and acknowledges that Lender may rely solely on any bank routing number or identifying bank account number or name provided by Borrower to effect a wire or funds transfer even if the information provided by Borrower
identifies a different bank or account holder than named by Borrower. Lender is not obligated or required in any way to take any actions to detect errors in information provided by Borrower. 
 (b) If Lender takes any actions in an attempt to detect errors in the transmission or content of transfer or requests or takes any actions
in an attempt to detect unauthorized funds transfer requests, Borrower agrees that no matter how many times Lender takes these actions Lender will not in any situation be liable for failing to take or correctly perform these actions in the future,
and such actions shall not become any part of the transfer 

  

 25 

 
disbursement procedures authorized under this provision, the Loan Documents or any agreement between Lender and Borrower. Borrower agrees to notify Lender of
any errors in the transfer of any funds or of any unauthorized or improperly authorized transfer requests within fourteen (14) days after Lender’s confirmation to Borrower of such transfer. 
 (c) Lender will, in its sole discretion, determine the funds transfer system and the means by which each transfer will be made. Lender may
delay or refuse to accept a funds transfer request if the transfer would: (i) violate the terms of this authorization, (ii) require use of a bank unacceptable to Lender or prohibited by government authority, (iii) cause Lender to
violate any Federal Reserve Board or other regulatory risk control program or guideline, or (iii) otherwise cause Lender to violate any applicable law or regulation. 
 (d) Lender shall not be liable to Borrower or any other parties for (i) errors, acts or failures to act of others, including other
entities, banks, communications carriers or clearinghouses, through which Borrower’s transfers may be made or information received or transmitted, and no such entity shall be deemed an agent of the Lender, (ii) any loss, liability or delay
caused by fires, earthquakes, wars, civil disturbances, power surges or failures, acts of government, labor disputes, failures in communications networks, legal constraints or other events beyond Lender’s control, or (iii) any special,
consequential, indirect or punitive damages, whether or not (A) any claim for these damages is based on tort or contract or (B) Lender or Borrower knew or should have known the likelihood of these damages in any situation. Lender makes no
representations or warranties other than those expressly made in this Agreement. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES 
 In
order to induce Lender to make the Loan, Borrower hereby represents and warrants to Lender as follows: 
 5.1 Organization; Corporate
Powers. 
 Borrower (a) is a limited liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation, (b) is duly qualified to do business as a foreign entity and in good standing under the laws of each jurisdiction in which it owns or leases real property or in which the nature of its business
requires it to be so qualified, except for those jurisdictions where failure to so qualify and be in good standing would not have a Material Adverse Effect, and (c) has all requisite power and authority, as the case may be, to own, operate and
encumber its property and assets and to conduct its business as presently conducted and as proposed to be conducted in connection with and following the consummation of the Loan contemplated by the Loan Documents. Borrower’s chief executive
office is located at its address for notice set forth below its signature hereto. 
 5.2 Authority. 
 Borrower has the requisite power and authority to execute, deliver and perform each of the Loan Documents. The execution, delivery and
performance thereof, and the 

  

 26 

 
consummation of the transactions contemplated thereby, have been duly approved by the equity owners of Borrower and no other proceedings or authorizations on
the part of Borrower or its equity owners are necessary to consummate such transactions, except for such as have been obtained or effected and true and correct copies of which have been delivered to Lender. Each of the Loan Documents to which
Borrower is a party has been duly executed and delivered by Borrower and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency and other laws affecting
creditors’ rights generally. 
 5.3 Ownership of Borrower. 
 Schedule 5.3 sets forth the direct and indirect owners of Borrower (but not any owners, direct or indirect, of KBS REIT) and the
owners’ respective ownership percentages therein, and there are no other ownership interests outstanding. Except as set forth or referred to in the organizational documents of Borrower, no ownership interest (or any securities, instruments,
warrants, option or purchase rights, conversion or exchange rights, calls, commitments or claims of any character convertible into or exercisable for any ownership interest) of any such Person is subject to issuance under any security, instrument,
warrant, option or purchase rights, conversion or exchange rights, call, commitment or claim of any right, title or interest therein or thereto. All of the ownership interests in Borrower have been issued in compliance with all applicable
Requirements of Law. 
 5.4 No Conflict. 
 The execution, delivery and performance by Borrower of the Loan Documents, and each of the transactions contemplated thereby, do not and will not (a) conflict with or violate Borrower’s organizational
documents, or (b) conflict with, result in a breach of or constitute (with or without notice or lapse of time or both) a default under any Requirement of Law or Court Order binding upon Borrower or any of its equity owners, which circumstance
would have a Material Adverse Effect, or (c) conflict with, result in a breach of or constitute (with or without notice or lapse of time or both) a default under, or require termination of any Contractual Obligation of Borrower, which
circumstance would have a Material Adverse Effect, or (d) result in or require the creation or imposition of any Lien whatsoever upon any of the properties or assets of Borrower (other than Liens in favor of Lender arising pursuant to the Loan
Documents or Permitted Liens). 
 5.5 Consents and Authorizations. 
 Borrower has obtained all consents and authorizations required pursuant to its Contractual Obligations with any other Person, and shall
have obtained all consents and authorizations of, and effected all notices to and filings with, any Governmental Authority, as may be necessary to allow Borrower to lawfully execute, deliver and perform its obligations under the Loan Documents.

  

 27 

 5.6 Governmental Regulation. 
 Borrower is not subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Interstate Commerce
Act, the Investment Company Act of 1940 or any other federal or state statute or regulation such that its ability to incur indebtedness is limited or its ability to consummate the transactions contemplated by the Loan Documents is materially
impaired. 
 5.7 Prior Financials. 
 Any and all balance sheets and income statements of Borrower delivered to Lender prior to the date hereof were prepared in accordance with GAAP and fairly present the assets, liabilities and financial condition of
Borrower or such constituent shareholders, partners or members, at such date and the results of its operations and its cash flows, for the period then ended. 
 5.8 Financial Statements; Projections and Forecasts. 
 Each of the Financial
Statements to be delivered to Lender by Borrower pursuant to Section 6.1(b) (a) has been, or will be, as applicable, prepared in accordance with the books and records of Borrower, and (b) either fairly present, or will fairly
present, as applicable, the financial condition of Borrower, at the dates thereof (and, if applicable, subject to normal year-end adjustments) and the results of its operations and cash flows for the period then ended. Each of the projections
delivered to Lender prior to the date hereof and the financial plans and projections to be delivered to Lender pursuant to Section 6.1 (x) has been, or will be, as applicable, prepared by Borrower in light of the past business and
performance of Borrower and (y) represent, or will represent, as of the date thereof, the reasonable good faith estimates of Borrower’s financial personnel. 
 5.9 Prior Operating Statements. 
 Each of the operating statements pertaining to the
Property delivered to Lender prior to the date hereof and prepared by or on behalf of a prior owner of the Property fairly presents, to the best of Borrower’s knowledge, the results of operations of such Property for the period covered thereby.
Each of the operating statements pertaining to the Property delivered to Lender prior to the date hereof and prepared by or on behalf of Borrower was prepared in accordance with GAAP in effect on the date such operating statement of the Property was
prepared and fairly presents the results of operations of the Property for the period then ended. 
 5.10 Operating Statements and
Projections. 
 Each of the Operating Statements to be delivered to Lender pursuant to Section 6.1(a)
(a) has been or will be, as applicable, prepared in accordance with the books and records of the Property, and (b) fairly presents or will fairly present, as applicable, the results of operations of the Property for the period then ended.
Each of the projections, financial plans and budgets delivered to Lender prior to the date hereof (to the best of Borrower’s knowledge) and the projections and budgets to be delivered to Lender pursuant to Section 6.1(d)
(x) has been, or will be, as applicable, prepared for the Property in light of the past business and performance of the Property and (y) represents or will represent, as of the date thereof, the reasonable good faith estimates of the
financial personnel of Borrower. 
  

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 5.11 Litigation; Adverse Effects. 
 (a) To the best of Borrower’s knowledge, there is no Proceeding, pending or threatened, against Borrower or any property of Borrower
(including the Property), which, if adversely determined, would result in a Material Adverse Effect. 
 (b) Except as
disclosed on Schedule 5.11 hereto, Borrower is not (i) in violation of any applicable law, which violation has a Material Adverse Effect, or (ii) subject to or in default with respect to any Court Order which has a Material Adverse
Effect. 
 5.12 No Material Adverse Change. 
 With respect to any and all information contained in those materials delivered to Lender pursuant to Sections 5.1 through
Section 5.11, there has occurred no event which has a Material Adverse Effect. 
 5.13 Payment of Taxes. 
 All tax returns and reports to be filed by Borrower have been timely filed, and all taxes, assessments, fees and other governmental
charges shown on such returns or otherwise payable by Borrower have been paid when due and payable (other than real property taxes, which may be paid prior to delinquency so long as no penalty or interest shall attach thereto), except such taxes, if
any, as are reserved against in accordance with GAAP and are being contested in good faith by appropriate proceedings or such taxes, the failure to make payment of which when due and payable will not have, in the aggregate, a Material Adverse
Effect. Borrower has no knowledge of any proposed tax assessment against Borrower that will have a Material Adverse Effect, which is not being actively contested in good faith by Borrower. 
 5.14 Material Adverse Agreements. 
 Borrower is not a party to or subject to any Contractual Obligation or other restriction contained in its organizational documents which has a Material Adverse Effect. 
 5.15 Performance. 
 Borrower is not in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Contractual Obligation applicable to it, and no condition exists which, with the giving of notice
or the lapse of time or both, would constitute a default under such Contractual Obligation in each case, except where the consequences, direct or indirect, of such default or defaults, if any, will not have a Material Adverse Effect. 
  

 29 

 5.16 Federal Reserve Regulations. 
 No part of the proceeds of the Loan hereunder will be used to purchase or carry any “margin security” as defined in Regulation G
or for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might constitute this transaction a “purpose credit” within the meaning of
said Regulation G. Borrower is not engaged primarily in the business of extending credit for the purpose of purchasing or carrying out any “margin stock” as defined in Regulation U. No part of the proceeds of the Loan hereunder will be
used for any purpose that violates, or which is inconsistent with, the provisions of Regulation X or any other regulation of the Federal Reserve Board. 
 5.17 Disclosure. 
 The representations and warranties of Borrower contained in the
Loan Documents and all certificates, financial statements and other documents prepared by or on behalf Borrower and delivered to Lender by or on behalf of Borrower in connection therewith, taken as a whole, do not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were made, not misleading. Borrower has given to Lender true, correct and complete
copies (which representation, with respect to any of the following items made available to Borrower by Persons other than Affiliates of Borrower, is made to the best of Borrower’s knowledge) of all Leases, organizational documents, Financial
Statements, Operating Statements, and all other documents and instruments referred to in the Loan Documents as having been delivered to Lender. Borrower has not intentionally withheld from Lender, in regard to any matter raised in the Loan
Documents, any fact deemed by Borrower to be material. Notwithstanding the foregoing, with respect to projections of Borrower’s future performance such representations and warranties are made in good faith and to the best judgment of Borrower.

 5.18 Requirements of Law; ERISA. 
 Borrower is in compliance with all Requirements of Law applicable to it and its respective businesses, in each case, where the failure to so comply will have a Material Adverse Effect. Borrower is not, and does not
hold plan assets of, an employee benefit plan subject to Title I of ERISA or Section 4975 of the Internal Revenue Code. 
 5.19
Environmental Matters. 
 Except as disclosed in the environmental report(s) set forth on Schedule 5.19, to the
best of Borrower’s knowledge, (a) the operations of Borrower comply in all material respects with all applicable local, state and federal environmental, health and safety Requirements of Law (“Environmental Laws”); (b)the
Property is not subject to any Remedial Action or other Liabilities and Costs arising from the Release or threatened Release of a Contaminant into the environment in violation of any Environmental Laws; (c) Borrower has not filed any notice
under applicable Environmental Laws reporting a Release of a Contaminant into the environment in violation of any Environmental Laws, except as the same may have been heretofore remedied; (d) there is not now on or in the Property: (i) any
underground storage tanks, (ii) any asbestos-containing material, or (iii) any polychlorinated biphenyls (PCBs) used in hydraulic oils, 

  

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electrical transformers or other equipment; and (e) Borrower has not received any notice or claim to the effect that it is or may be liable to any
Person as a result of the Release or threatened Release of a Contaminant into the environment. 
 5.20 Major Agreements; Leases.

 (a) With respect to the Property, Borrower has provided to Lender copies of each Major Agreement and all Leases.

 (b) (i) All Major Agreements with respect to the Property are, to the best of Borrower’s knowledge, in full force and
effect and have not been and will not be modified or terminated (except for modifications which comply with Section 3.3(d), and terminations by reason of a material default), and (ii) (in each case, other than any such default or
event of default that, had the effect thereof been taken into account by Lender in determining the Appraised Value of the Property, would not have resulted in such Appraised Value of the Property being less than ninety-five percent (95%) of the
Appraised Value of the Property actually determined by Lender) no default or event of default (or event or occurrence which with the passage of time or the giving of notice, or both, will constitute a default or event of default) exists under any
such Major Agreement on the part of Borrower, or will exist thereunder on the part of Borrower as a result of the consummation of the transactions contemplated by the Loan Documents, or, to the best of Borrower’s knowledge, exists thereunder on
the part of any other party thereto, or will exist thereunder on the part of any other party thereto as a result of the consummation of the transactions contemplated by the Loan Documents. 
 (c) To the best knowledge of Borrower, (i) except as reflected on the most current rent rolls delivered to Lender, all Leases are in
full force and effect, and have not been and, as to Major Leases, will not be modified or terminated (except for modifications which comply with Section 3.3(b) or that do not require the approval of Lender), and terminations by reason of
a material default) and (ii) no default or event or default (or event or occurrence which upon with the passage of time or the giving of notice, or both, will constitute a default or event of default) exists thereunder on the part of Borrower,
or will exist thereunder on the part of Borrower as a result of the consummation of the transactions contemplated by the Loan Documents, or, to the best of Borrower’s knowledge, exists thereunder on the part of any other party thereto, or will
exist thereunder on the part of any other party thereto as a result of the consummation of the transactions contemplated by the Loan Documents. Notwithstanding that the representations in this subsection (c) are made to the best of
Borrower’s knowledge, Borrower will be deemed to have breached this representation if (A) as of any date on which such representations are made, the statements in either clause (i) or clause (ii) hereof are inaccurate, regardless
of whether Borrower had knowledge of such inaccuracy, and (B) if either (1) Borrower had knowledge of such inaccuracy, or (2) had the effect thereof been taken into account by Lender in determining the Appraised Value of the
Property, such Appraised Value of the Property would have been less than ninety-five percent (95%) of the Appraised Value of the Property actually determined by Lender). 
  

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 5.21 Solvency. 
 Borrower is and will be Solvent after giving effect to each disbursement of the Loan and the payment and accrual of all fees then payable.

 5.22 Title to Property; No Liens. 
 As of the Closing Date, to the best of Borrower’s knowledge, Borrower has good, indefeasible and merchantable title to the Property, free and clear of all Liens except Permitted Liens. 
 5.23 Use of Proceeds. 
 Borrower’s use of the proceeds of the Loan are, and will continue to be, legal and proper uses (and to the extent necessary, duly authorized by Borrower’s constituent shareholders, partners or members, as the case may be) and such
uses are consistent with all applicable laws and statutes. 
 5.24 Property Management Agreements. 
 Except as disclosed on Schedule 5.24, Borrower is not a party or subject to any property management or leasing agreement with
respect to the Property. 
 5.25 Single Purpose Entity. 
 Borrower is a Single Purpose Entity. 
 5.26 Tax Shelter Regulations. 
 Borrower does not intend to treat the Loan or the transactions contemplated
by this Agreement and the other Loan Documents as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4). If Borrower, or any other party to the Loan determines to take any action inconsistent
with such intention, Borrower will promptly notify Lender thereof. If Borrower so notifies Lender, Borrower acknowledges that Lender may treat the Loan as part of a transaction that is subject to Treasury Regulation Section 301.6112-1, and
Lender will maintain the lists and other records, including the identity of the applicable party to the Loan as required by such Treasury Regulation. 
 5.27 Organizational Documents. 
 The organizational documents of each entity owning a
direct or indirect ownership interest in Borrower (expressly excluding any entity owning a direct or indirect interest in KBS REIT), as shown on Schedule 5.3, have not been modified since previously delivered to Lender, or if such documents
have been modified, then such modifications have been provided to Lender. 
  

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 ARTICLE VI 
 REPORTING COVENANTS 
 Borrower covenants and agrees that, on and after the date hereof, until payment
in full of all of the Obligations, and termination of this Agreement: 
 6.1 Financial Statements and Other Financial and Operating
Information (Borrower). 
 Borrower shall maintain or cause to be maintained a system of accounting established and
administered in accordance with sound business practices and consistent with past practice to permit preparation of quarterly and, to the extent applicable, annual financial statements, each in conformity with GAAP, and each of the financial
statements described below shall be prepared for Borrower from such system and records. Borrower shall deliver or cause to be delivered to Lender: 
 (a) Operating Statements and Operating Results. 
 As soon as practicable, and in any
event within forty-five (45) days after the end of the each Fiscal Quarter commencing with the Fiscal Quarter ending December 31, 2007, quarterly operating statements, in such form as may be approved by Lender from time to time, which
operating statements shall include actual quarterly and year-to-date net operating income and net cash flow results, rent rolls (on Borrower’s detailed form of rent roll), current and prospective lease status reports and occupancy summaries in
the form customarily generated by Borrower for the Property dated as of the last day of such Fiscal Quarter, in form and substance satisfactory to Lender, certified on behalf of Borrower by Borrower’s advisor’s portfolio account
controller. In addition, as soon as practicable, and in any event within forty-five (45) days after the end of the fourth Fiscal Quarter, a year-end operating statement, in such form as may be approved by Lender from time to time (collectively
with the quarterly statements, the “Operating Statements”). 
 (b) Quarterly Financial Statements.

 As soon as practicable, and in any event within forty-five (45) days after the end of each Fiscal Quarter,
(i) balance sheets, statements of operations and statements of cash flow for Borrower (collectively, “Financial Statements”), and (ii) a Borrower’s Certificate in the form of Exhibit C or otherwise in form and
substance satisfactory to Lender, in each case certified on behalf of Borrower by Borrower’s advisor’s portfolio account controller. 
 (c) Borrower’s Certificate. 
 (i) Together with each delivery of any Operating
Statement or Financial Statement pursuant to subsections (a) and (b) above, a Borrower’s Certificate, stating that the individual who is the signatory thereto (which individual shall be the controller of KBS REIT) has reviewed, or
caused under his or her supervision to be reviewed, the terms of this Agreement and the other principal Loan Documents, and has made, or caused to be made under his or her supervision, a review in reasonable detail of the transactions and condition
of Borrower during the accounting period covered by such Operating Statements or Financial Statements, and 

  

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that such review has not disclosed the existence during or at the end of such accounting period, and that the signer does not have knowledge of the existence
as of the date of the Borrower’s Certificate, of any condition or event which constitutes an Event of Default or Unmatured Event of Default, or, if any such condition or event existed or exists, specifying the nature and period of existence
thereof and what action has been taken, is being taken and is proposed to be taken with respect thereto. 
 (ii) Together with
each delivery of any Operating Statement or Financial Statement pursuant to subsections (a) and (b) above with respect to the last Fiscal Quarter of any Fiscal Year, a Borrower’s Certificate, stating that the individual who is the
signatory thereto (which individual shall be an authorized signatory of Borrower having authority over Borrower’s affairs comparable to that of the chief executive officer, the chief operating officer, or the chief financial officer of a
corporation) has reviewed, or caused under his or her supervision to be reviewed, the terms of this Agreement and the other principal Loan Documents, and has made, or caused to be made under his or her supervision, a review in reasonable detail of
the transactions and condition of Borrower during the Fiscal Year then most recently ended, and that such review has not disclosed the existence during or at the end of such Fiscal Year, and that the signer does not have knowledge of the existence
as of the date of the Borrower’s Certificate, of any condition or event which constitutes an Event of Default or Unmatured Event of Default, or, if any such condition or event existed or exists, specifying the nature and period of existence
thereof and what action has been taken, is being taken and is proposed to be taken with respect thereto. 
 (iii) Each
Borrower’s Certificate referenced in subsections (i) and (ii) above shall also (A) contain a certification by the individual who is the signatory thereto the Borrower is in compliance with all covenants contained herein, and
(B) without limiting the provisions of Section 9.2, shall provide a schedule of contingent liabilities of Borrower consisting of letters of credit and guaranties of debt, together with a listing of contingent liabilities arising
from trade payables and leases if such contingent liabilities arising from the items listed in clauses (ii) and (v) of Section 9.2 below exceed $1,500,000 (in the aggregate). 
 (d) Budgets. 
 Not later than February 28 of each Fiscal Year, annual operating and capital budgets for the Property for such Fiscal Year, prepared on an fiscal basis, in such form as may be approved by Lender from time to time, together with all
supporting details reasonably requested by Lender, and certified, under a Borrower’s Certificate, as being based upon Borrower’s reasonable good faith estimates, upon information and assumptions at the time. 
 (e) Knowledge of Event of Default. 
 Promptly upon Borrower obtaining knowledge (i) of any condition or event which constitutes an Event of Default or Unmatured Event of Default (including, without limitation, KBS REIT’s failure to satisfy any
covenant contained in Exhibit F), or becoming aware that any Lender has given notice or taken any other action with respect to a claimed Event of Default or Unmatured Event of Default or (ii) of any condition or event which has a
Material Adverse 

  

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Effect, a Borrower’s Certificate specifying the nature and period of existence of any such condition or event, or specifying the notice given or action
taken by such Lender and the nature of such claimed Event of Default, Unmatured Event of Default, event or condition, and what action Borrower has taken, is taking and proposes to take with respect thereto. 
 (f) Litigation, Arbitration or Government Investigation. 
 Promptly upon Borrower obtaining knowledge of (i) the institution of, or written threat of, any material Proceeding against or
affecting Borrower or the Property not previously disclosed in writing by Borrower to Lender pursuant to this Section 6.1(f), including any eminent domain or other condemnation proceedings affecting the Property, or (ii) any
material development in any Proceeding already disclosed, which, in either case, has a Material Adverse Effect, a notice thereof to Lender and such other information as may be reasonably available to it to enable Lender and its counsel to evaluate
such matters. 
 (g) ERISA Matters. 
 As soon as possible, and in any event within thirty (30) days after Borrower knows or has reason to know that Borrower or any of its
ERISA Affiliates has or is likely to incur any liability with respect to any Benefit Plan, or any withdrawal liability with respect to any Multiemployer Plan, which would have a Material Adverse Effect, a written statement of the chief financial
officer of Borrower describing such occurrence and the action, if any, which Borrower or any ERISA Affiliate of Borrower has taken, is taking or proposes to take, with respect thereto, and, when known, any action taken or threatened by the IRS, the
DOL or the PBGC with respect thereto. 
 (h) Other Information. 
 Such other information, reports, contracts, schedules, lists, documents, agreements and instruments in the possession or under the control
of Borrower with respect to (i) the Property, (ii) any material change in Borrower’s investment, finance or operating policies, or (iii) Borrower’s business, condition (financial or otherwise), operations, performance,
properties or prospects as Lender may from time to time reasonably request, including, without limitation, annual information with respect to cash flow projections, budgets, operating statements (current year and immediately preceding year), rent
rolls, lease expiration reports and leasing status reports. Provided that Lender gives Borrower reasonable prior notice and an opportunity to participate, Borrower hereby authorizes Lender to communicate with the Accountants and authorizes the
Accountants to disclose to Lender any and all financial statements and other information of any kind, including copies of any management letter or the substance of any oral information, that such accountants may have with respect to the Collateral
or Borrower’s condition (financial or otherwise), operations, properties, performance and prospects. Concurrently therewith, Lender will notify Borrower of any such communication. At Lender’s request, Borrower shall deliver a letter
addressed to the Accountants instructing them to disclose such information in compliance with this Section 6.1(h). 
  

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 (i) Accountant Reports. 
 (1) If at any time Borrower causes audited financial statements to be prepared with respect to any Fiscal Year, then, within ten (10) Business Days
after receipt thereof from the Accountants: copies of such audited financial statements, together with all reports prepared by the Accountants and submitted to Borrower in connection therewith, including the comment letter submitted by the
Accountants in connection with such audit; and (2) copies of all reports prepared by the Accountants and submitted to Borrower in connection with any other annual, interim or special audit or review of the financial statements or practices of
Borrower. 
 6.2 Financial Statements and Other Financial and Operating Information (KBS REIT). 
 Borrower shall deliver, or cause KBS REIT to deliver, to Lender: 
 (a) Quarterly Financial Statements. 
 As soon as practicable, and in any event within forty-five (45) days after the end of each Fiscal Quarter, balance sheets, statements of operations and statements of cash flow for KBS REIT, and (ii) a KBS
REIT Compliance Certificate in the form of Exhibit C-2 or otherwise in form and substance satisfactory to Lender, in each case certified on behalf of KBS REIT by the controller of KBS REIT. 
 (b) Additional Reporting. 
 Upon Lender’s request therefor, any additional financial information prepared by or for KBS REIT, including reporting relating to individual real estate assts owned by KBS REIT, including, without limitation,
property cash flow projections, property budgets, operating statements and leasing status reports. 
 6.3 Environmental Notices.

 Borrower shall notify Lender, in writing, as soon as practicable, and in any event within ten (10) days after
Borrower’s learning thereof, of any: (a) written notice or claim to the effect that Borrower is or may be liable to any Person as a result of any material Release or threatened Release of any Contaminant into the environment;
(b) written notice that Borrower is subject to investigation by any Governmental Authority evaluating whether any Remedial Action is needed to respond to the Release or threatened Release of any Contaminant into the environment;
(c) written notice that the Property is subject to an Environmental Lien; (d) written notice of violation to Borrower or awareness of a condition which might reasonably result in a notice of violation of any Environmental Laws by Borrower;
(e) commencement or written threat of any Proceeding alleging a violation of any Environmental Laws by Borrower or with respect to the Property; or (f) written notice from a Governmental Authority of any changes to any existing
Environmental Laws that will have a Material Adverse Effect. 
 6.4 Confidentiality. 
 Confidential information obtained by Lender pursuant to this Agreement or in connection with the Loan shall not be disseminated by Lender
and shall not be disclosed to third parties except to regulators, taxing authorities and other governmental agencies having 

  

 36 

 
jurisdiction over Lender or otherwise in response to Requirements of Law, to Lender’s auditors and legal counsel and in connection with regulatory,
administrative and judicial proceedings as necessary or relevant including enforcement proceedings relating to the Loan Documents, and to any prospective assignee of or participant in Lender’s interest under this Agreement or any prospective
purchaser of the assets or a controlling interest in Lender, provided that such prospective assignee, participant or purchaser first agrees to be bound by the provisions of this Section 6.4. In connection with disclosures of
confidential information to any non-governmental third-party, Lender shall, to the extent feasible and permitted, give prior notice of such request to Borrower; however, Lender shall incur no liability to Borrower for failure to do so. For purposes
hereof, “confidential information” shall mean all nonpublic information obtained by Lender, unless and until such information becomes publicly known, other than as a result of unauthorized disclosure by Lender of such information.

 ARTICLE VII 
 AFFIRMATIVE COVENANTS 
 Borrower covenants and agrees that, on and after the date hereof, until payment in full of all of
the Obligations, and termination of this Agreement: 
 7.1 Existence. 
 Borrower shall at all times maintain its existence as a limited liability company and preserve and keep in full force and effect its
rights and franchises unless the failure to maintain such rights and franchises does not have a Material Adverse Effect. 
 7.2
Qualification, Name. 
 Borrower shall qualify and remain qualified to do business in each jurisdiction in which the
nature of its business requires it to be so qualified except for those jurisdictions where failure to so qualify does not have a Material Adverse Effect. Borrower will transact business solely in its own name. 
 7.3 Compliance with Laws, Etc. 
 Borrower shall (a) comply with all Requirements of Law, and all restrictive covenants affecting Borrower or the properties, performance, prospects, assets or operations of Borrower, and (b) obtain as needed
all Permits necessary for its operations and maintain such in good standing, except in each of the foregoing cases where the failure to do so will not have a Material Adverse Effect. 
 7.4 Payment of Taxes and Claims. 
 Borrower shall pay (a) all taxes, assessments and other governmental charges imposed upon it or on any of its properties or assets or in respect of any of its franchises, business, income or property before any
penalty or interest accrues thereon, the failure to make payment of which will have a Material Adverse Effect, and (b) all claims (including, without limitation, claims for labor, services, materials and supplies) for sums, material in the
aggregate 

  

 37 

 
to Borrower, which have become due and payable and which by law have or may become a Lien other than a judgment lien upon any of Borrower’s properties
or assets, prior to the time when any penalty or fine shall be incurred with respect thereto. Notwithstanding the foregoing, Borrower may contest by appropriate legal proceedings conducted in good faith and with due diligence, the amount, validity
or application, in whole or in part, of any taxes, assessments, other governmental charges or claims described above, provided that Borrower shall provide such security as may be required by Lender to insure ultimate payment of the same and to
prevent any sale or forfeiture of any of Borrower’s properties or assets, provided, however, that the provisions of this Section 7.4 shall not be construed to permit Borrower to contest the payment of any Obligations
or any other sums payable by Borrower to Lender hereunder or under any other Loan Document. Notwithstanding any of the foregoing, Borrower shall indemnify, defend and save Lender harmless from and against any liability, cost or expense of any kind
that may be imposed on Lender in connection with any such contest and any loss resulting therefrom. 
 7.5 Maintenance of Property;
Insurance. 
 Borrower shall maintain the Property in good repair, working order and condition, excepting ordinary wear
and tear and will make or cause to be made all appropriate repairs, renewals and replacements thereof. Borrower shall maintain (a) insurance policies with respect to the Property in accordance with Section 3.3(a) and
(b) commercially reasonable and appropriate amounts of insurance against such other risks as would be maintained by a prudent Person engaged in a business such as that in which Borrower is engaged. 
 7.6 Inspection of Property; Books and Records; Discussions. 
 Borrower shall permit any authorized representative(s) designated by Lender to visit and inspect the Property, to inspect financial and
accounting records and leases, and to make copies and take extracts therefrom, all at such times during normal business hours and as often as Lender may reasonably request. In connection therewith, Borrower shall pay all expenses of the types
described in Section 11.1. Borrower will keep proper books of record and account in which entries, in conformity with GAAP and as otherwise required by this Agreement and applicable Requirements of Law, shall be made of all dealings and
transactions in relation to its businesses and activities and as otherwise required under Section 6.1. 
 7.7 Maintenance of
Permits, Etc. 
 Borrower will maintain in full force and effect all Permits, franchises, patents, trademarks, trade
names, copyrights, authorizations or other rights necessary for the operation of its business, except where the failure to obtain any of the foregoing would not have a Material Adverse Effect; and notify Lender in writing, promptly after learning
thereof, of the suspension, cancellation, revocation or discontinuance of or of any pending or threatened action or proceeding seeking to suspend, cancel, revoke or discontinue any material Permit, patent, trademark, trade name, copyright,
governmental approval, franchise authorization or right. 
 7.8 Single Purpose Entity. 
 Borrower shall at all times be a Single Purpose Entity. 
  

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 7.9 Subordination of Property Management Agreements. 
 Within thirty (30) days following the Closing Date, Borrower shall deliver to Lender an estoppel and subordination of each property
management and leasing agreement identified on Schedule 5.24. 
 7.10 SNDAs. 
 Borrower shall use commercially reasonable efforts to obtain SNDAs from each of the tenants occupying more than fifteen percent
(15%) of the net rentable area of the Property within sixty (60) days after the Closing Date. 
 7.11 KBS REIT Covenants.

 At all times while the Compliance Ratio is greater than forty-five percent (45%), KBS REIT (on a consolidated basis) shall
comply with the covenants set forth on Exhibit F attached hereto. As of the date of this Agreement, the Compliance Ratio is approximately fifty percent (50%). 
 ARTICLE VIII 
 NEGATIVE COVENANTS 
 Borrower covenants and agrees that, on and after the date hereof, until payment in full of all of the Obligations, and termination of this Agreement:

 8.1 Operating Restrictions: 
 Borrower shall not: 
 (a) Indebtedness; Liens. 
 Directly or indirectly create, incur, assume or permit to exist (i) any Indebtedness other than as specifically permitted in
Section 9.2, or (ii) any Lien on or with respect to any Collateral, except (A) Liens in favor of Lender securing the Obligations and (B) Permitted Liens. Nothing contained in this Agreement or in any of the other Loan
Documents shall limit or impair the right of Borrower’s constituent members or partners to directly or indirectly create, incur, assume or permit to exist any Indebtedness of, or any Lien upon any property of, such member or partner.

 (b) Transfers of Collateral. 
 Transfer, directly or indirectly, all or any interest in the Property or the Collateral. Notwithstanding the foregoing, Borrower shall be
permitted to transfer the Property to a Single 

  

 39 

 
Purpose Entity wholly owned, directly or indirectly, by KBS REIT, subject to prior written consent by Lender, not to be unreasonably withheld, which approval
may include, without limitation, the following requirements: (1) execution of such loan documentation as Lender determines necessary (including, without limitation, an assumption of the Loan Documents and any new Deed(s) of Trust to ensure
Lender’s continued first priority lien on the Property), (2) Lender’s receipt of title insurance, (3) payment of reasonable costs and expenses of Lender, and (4) there shall be no Event of Default. 
 (c) Restrictions on Fundamental Changes. 
 (i) Enter into any merger or consolidation or liquidate, wind-up or dissolve (or suffer any liquidation or dissolution); or 
 (ii) Engage in any line of business other than as expressly permitted under Section 7.8; or 
 (iii) Except upon prior written notice to Lender, move its chief executive office from the State of California. 
 (d) Loans to Other Persons; Investments. 
 Borrower shall not make any direct or indirect purchase or other acquisition of securities or other interests, or of a beneficial interest
in securities or other interests, of any other Person, or make any direct or indirect loan, advance (other than deposits with financial institutions available for withdrawal on demand, prepaid expenses, advances to employees and similar items made
or incurred in the ordinary course of business, but excluding any other Indebtedness and all accounts owed to Borrower that are not current assets or that did not arise from sales of goods or services to another Person in the ordinary course of
business), or capital contribution, to any other Person. 
 8.2 Amendment of Constituent Documents. 
 Except with Lender’s prior written consent, which shall not be unreasonably withheld, Borrower shall not amend its organizational
documents (including, without limitation, as to the admission of any new equity owner, directly or indirectly). 
 8.3 Margin
Regulations. 
 No portion of the proceeds of the Loan shall be used in any manner which might cause the extension of
credit or the application of such proceeds to violate Regulation G, U or X or any other regulation of the Federal Reserve Board or other applicable law. 
  

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 8.4 Ownership; Management. 
 (a) Ownership of Borrower. 
 Except as otherwise permitted in Exhibit F attached hereto, Borrower shall be wholly owned, either directly or indirectly, by KBS REIT. Notwithstanding anything stated to the contrary in this Agreement, the
Security Instrument or in any of the other Loan Documents, any transfers of equity interests or other interests in KBS REIT Properties, LLC or in any of the direct or indirect owners of KBS REIT Properties, LLC shall not be prohibited (and shall be
expressly permitted) provided that KBS REIT continues to directly or indirectly wholly own Borrower. 
 (b) Management.

 The asset manager of KBS REIT shall not at any time be any Person other than Manager (with either Charles J. Schreiber, Jr.
or Peter M. Bren at all times as an active principal and senior manager thereof) acting pursuant to the Management Agreement. 
 ARTICLE IX

 FINANCIAL COVENANT 
 Borrower covenants and agrees that, on and after the date of this Agreement and until payment in full of all the Obligations, and the termination of this Agreement: 
 9.1 Distributions. 
 In general, no Distributions by Borrower shall be made during the continuance of any Event of Default, provided, however, that so long as Borrower remains current with respect to its obligation to pay accrued and unpaid
interest due and owing under the Loan, at any time prior to the initial stated Maturity Date (including during the continuance of an Event of Default or following an acceleration of the Loan) Borrower may distribute funds from the operation of the
Property (other than Termination Payments referred to in Section 3.3 above) to KBS REIT in order to pay Permitted REIT Distributions. 
 9.2 Incurrence of Additional Indebtedness. 
 (i) Borrower shall not incur any Indebtedness or other
liabilities other than (i) the Obligations, (ii) operating and equipment leases entered into in the ordinary course of Borrower’s business, (iii) tenant security deposits, (iv) non-delinquent, accrued but unpaid real estate
taxes and insurance premiums, (v) other trade payables in respect of operating expenses incurred in the ordinary course and (vi) any indebtedness, obligations or other liabilities (other than interest expense liability) in respect of
interest rate swap, collar, cap or similar agreements providing interest rate protection and foreign currency exchange agreements. Further, the sum of the liabilities referred to in clauses (ii) and (v) shall at no time exceed $1,500,000
in the aggregate. 
  

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 ARTICLE X 
 EVENTS OF DEFAULT; RIGHTS AND REMEDIES 
 10.1 Events of Default. 
 Each of the following occurrences shall constitute an Event of Default under this Agreement: 
 (a) Failure to Make Payments When Due. 
 Borrower shall fail to pay (i) any amount due on the Maturity Date, (ii) any principal when due, or (iii) any interest on
the Loan (or any fee or other amount payable under any Loan Documents) within five (5) days after the date such interest, fee or other amount first became due. 
 (b) Distributions; Additional Indebtedness. 
 Borrower shall breach either covenant set forth in Article IX. 
 (c) Other Defaults. 
 Borrower shall fail duly and punctually to perform or observe any agreement, covenant or obligation binding on Borrower under this Agreement or under any of the other Loan Documents (other than as described in any
other provision of this Section 10.1), and (with respect to agreements, covenants or obligations for which no time period for performance is otherwise provided and for which cure is possible), such failure shall continue for
fifteen (15) days after the earlier of (i) the date as of which Borrower had actual knowledge of such failure, and (ii) the date on which Lender gives Borrower notice of such failure (or, in either such case, such lesser period of
time as is mandated by applicable Requirements of Law); provided, however, if such failure is not capable of cure within such fifteen (15) day period, but is capable of cure and the grant of additional time to cure would not result in a
Material Adverse Effect, then if Borrower promptly undertakes action to cure such failure and thereafter diligently prosecutes such cure to completion within ninety (90) days after the earlier of the two dates described in the preceding clauses
(i) and (ii), then Borrower shall not be in default hereunder. 
 (d) Breach of Representation or Warranty.

 Any representation or warranty made or deemed made by Borrower to Lender herein or in any of the other Loan Documents or in
any statement, certificate or financial statements at any time given by Borrower pursuant to any of the Loan Documents shall be false or misleading in any material respect on the date as of which made. 
 (e) Involuntary Bankruptcy; Appointment of Receiver, Etc. 
 (i) An involuntary case shall be commenced against Borrower and the petition shall not be dismissed within sixty (60) days after
commencement of the case, or a court having jurisdiction shall enter a decree or order for relief in respect of any such Person in an involuntary case, under any applicable bankruptcy, insolvency or other similar law now or hereinafter in effect; or
any other similar relief shall be granted under any applicable federal, state or foreign law; or 
  

 42 

 (ii) A decree or order of a court (or courts) having jurisdiction in the premises for the
appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the Borrower, or over all or a substantial part of the property of any such Person, shall be entered; or an interim receiver, trustee
or other custodian of any such Person or of all or a substantial part of the property of any such Person, shall be appointed or a warrant of attachment, execution or similar process against any substantial part of the property of any such Person,
shall be issued and any such event shall not be stayed, vacated, dismissed, bonded or discharged within sixty (60) days of entry, appointment or issuance. 
 (f) Voluntary Bankruptcy; Appointment of Receiver, Etc. 
 Borrower shall have an order for relief entered with respect to it or commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the
appointment of or taking of possession by a receiver, trustee or other custodian for all or a substantial part of its property; any such Person shall make any assignment for the benefit of creditors or shall be unable or fail, or admit in writing
its inability, to pay its debts as such debts become due; or any member, shareholder or manager of Borrower adopts any resolution or otherwise authorizes any action to approve any of the foregoing. 
 (g) Judgments and Attachments. 
 Any money judgment (other than a money judgment covered by insurance but only if the insurer has admitted liability with respect to such money judgment), writ or warrant of attachment, or similar process involving in
any case an amount in excess of One Million Dollars ($1,000,000) shall be entered or filed against Borrower or its assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days. 
 (h) Dissolution. 
 Any order, judgment or decree shall be entered against Borrower decreeing its involuntary dissolution or split up and such order shall remain undischarged and unstayed for a period in excess of thirty (30) days;
or Borrower shall otherwise dissolve or cease to exist. 
 (i) Loan Documents; Failure of Security. 
 If for any reason any Loan Document shall cease to be in full force and effect or any Lien intended to be created thereby shall cease to
be or is not valid or perfected; or any Lien in favor of Lender contemplated by this Agreement or any Loan Document shall, at any time, be invalidated or otherwise cease to be in full force and effect; or any such Lien or any Obligation shall be
subordinated or shall not have the priority contemplated by this Agreement or the Loan Documents for any reason, and, in the case of any of the foregoing, such condition or event shall continue for fifteen (15) days after Borrower knew of such
condition or event. 
  

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 (j) ERISA Liabilities. 
 Any Termination Event occurs which will or is reasonably likely to subject Borrower to a liability which Lender reasonably determines will
have a Material Adverse Effect, or the plan administrator of any Benefit Plan applies for approval under Section 412(d) of the Internal Revenue Code for a waiver of the minimum funding standards of Section 412(a) of the Internal Revenue
Code and Lender reasonably determines that the business hardship upon which the Section 412(d) waiver was based will or would reasonably be anticipated to subject Borrower to a liability which Lender determines will have a Material Adverse
Effect. 
 (k) Environmental Liabilities. 
 Borrower becomes subject to any Liabilities and Costs, which Lender reasonably deems to have a Material Adverse Effect, arising out of or
related to (i) the Release or threatened Release at the Property of any Contaminant into the environment, or any Remedial Action in response thereto, or (ii) any violation of any Environmental Laws. 
 (l) Solvency; Material Adverse Change. 
 Borrower shall cease to be Solvent, or there shall have occurred any event or circumstance having a Material Adverse Effect. 

(m) Interest Rate Management Agreement. 
 Borrower shall default under any swap, cap, collar, or any other rate management agreement. 
 (n) Default under any Other Security Instrument. 
 The occurrence of a monetary or other material default (and the expiration of any applicable notice and cure period) under any Other
Security Instrument. 
 (o) KBS REIT Covenant Compliance. 
 KBS REIT’s failure to satisfy any covenant contained in Exhibit F shall constitute an Event of Default hereunder unless within
thirty (30) days after the earlier of the date on which (i) written notice of such failure is delivered by Lender to Borrower, or (ii) Borrower fails to deliver a KBS REIT Compliance Certificate when and as required by
Section 6.2(a) above, which certificate (if delivered) would have indicated that KBS REIT was not in compliance with one or more of such covenants, either (A) KBS REIT corrects any non-compliance issues to Lender’s
satisfaction, or (B) Borrower repays principal outstanding under the Loan in an amount necessary to cause Compliance Ratio to be less than or equal to forty-five percent (45%); provided that Borrower acknowledges a cure under this subsection
(o) shall not obviate any Borrower obligation to comply with similar covenants under loans secured by the Other Security Agreements. 
 An Event of Default shall be deemed “continuing” until cured or waived in writing in accordance with Section 11.4. 
  

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 10.2 Rights and Remedies. 
 (a) Acceleration, Etc. 
 Upon the occurrence of any Event of Default described in the foregoing Section 10.1(e) or 10.1(f), the Loan shall automatically and immediately terminate and the unpaid principal amount of and any
and all accrued interest on the Loan shall automatically become immediately due and payable, with all additional interest from time to time accrued thereon and without presentment, demand or protest or other requirements of any kind (including,
without limitation, valuation and appraisement, diligence, presentment, notice of intent to demand or accelerate or notice of acceleration), all of which are hereby expressly waived by Borrower, and the obligations of Lender to make any further
disbursement of the Loan shall thereupon terminate; and upon the occurrence and during the continuance of any other Event of Default, Lender may, by written notice to Borrower, (i) declare that the Loan is terminated, whereupon the Loan and the
obligation of Lender to make any further disbursement of the Loan shall immediately terminate, and/or (ii) declare the unpaid principal amount of, any and all accrued and unpaid interest on the Loan and all of the other Obligations to be, and
the same shall thereupon be, immediately due and payable with all additional interest from time to time accrued thereon and without presentment, demand, or protest or other requirements of any kind (including without limitation, valuation and
appraisement, diligence, presentment, notice of intent to demand or accelerate and of acceleration), all of which are hereby expressly waived by Borrower. Without limiting Lender’s authority hereunder, on or after the Maturity Date, Lender may
exercise any or all rights and remedies under the Loan Documents or applicable law, including, without limitation, foreclosure upon the Property or any additional collateral. 
 (b) Access to Information. 
 If an Event of Default then exists, Lender shall have, in addition to and not by way of a limitation of any other rights and remedies contained in this Agreement or in the other Loan Documents, the right within
forty-eight (48) hours after notice to Borrower to obtain access to Borrower’s records (including computerized information, files and supporting software) relating to the Property, and its accounting information relating thereto, and to
use all of the foregoing and the information contained therein in any manner Lender deems appropriate which is related to the preservation or disposition of the Property or to the collection of the Obligations. Borrower hereby authorizes any
accountant or management company employed by Borrower to deliver such items and information to Lender. Notwithstanding anything to the contrary contained in the Loan Documents, upon the occurrence of and during the continuance of an Event of
Default, Lender shall be entitled to request and receive, by or through Borrower or appropriate legal process, any and all information concerning Borrower or any property of Borrower, which is reasonably available to or obtainable by Borrower.

 (c) Use of Intangibles. 
 To the extent Borrower has the power, without violating the terms of any agreement existing as of the Closing Date, to grant such a
license, Lender is hereby granted a license or other right to use, without charge, in connection with the exercise of Lender’s rights 

  

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and remedies under the Loan Documents, Borrower’s copyrights, rights of use of any name, trade secrets, trade names, tradestyles, trademarks, service
marks and advertising matter, or any property of a similar nature, as it pertains to the Collateral. 
 (d) Waiver of
Demand. 
 Demand, presentment, protest and notice of nonpayment are hereby waived by Borrower. Borrower also waives, to
the extent permitted by law, the benefit of all valuation, appraisal and exemption laws. 
 (e) Waivers, Amendments and
Remedies. 
 No delay or omission of Lender to exercise any right under any Loan Document shall impair such right or be
construed to be a waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver, amendment or
other variation of the terms, conditions or provisions of the Loan Documents whatsoever shall be valid unless in a writing signed by Lender, and then only to the extent in such writing specifically set forth. All remedies contained in the Loan
Documents or by law afforded shall be cumulative and all shall be available to Lender until the Obligations have been paid in full, the Loan has expired or terminated and this Agreement has been terminated. 
 10.3 Permitted REIT Distributions. 
 Notwithstanding anything stated to the contrary in this Agreement or in any of the other Loan Documents, Borrower shall under all circumstances be entitled to receive income (other than Lease Termination Payments
referred to in Section 3.3 above) generated from the Property (including while an Event of Default may exist) to cover Permitted REIT Distributions, except that, while an Event of Default continues in existence, Borrower’s right to
receive such income to cover Permitted REIT Distributions shall be conditioned upon such income first being used (i) to cover accrued and unpaid interest due and owing under the Loan, and (ii) if such Event of Default is the failure to
repay principal on or after the stated Maturity Date of the Loan (without any accelleration), to repay principal outstanding under the Loan. In addition, notwithstanding anything stated to the contrary in this Agreement, in the Security Instrument
or in any of the other Loan documents, Lender agrees that at all times prior to the stated Maturity Date (without acceleration) the funding of all reserves and other amounts under the Loan are subject to the provisions contained in this Agreement
permitting disbursement to Borrower of cash flow from the Property (other than Lease Termination Payments referred to in Section 3.3 above) to make Permitted REIT Distributions. 
  

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 ARTICLE XI 
 MISCELLANEOUS 
 11.1 Expenses. 
 (a) Generally. 
 Borrower agrees upon demand to pay, or reimburse Lender for, all of Lender’s reasonable external audit, legal, appraisal, valuation and investigation expenses and for all other reasonable out-of-pocket costs and expenses of every type
and nature (including, without limitation, the reasonable fees, expenses and disbursements of Lender’s internal appraisers, environmental advisors or legal counsel) incurred by Lender at any time (whether prior to, on or after the date of this
Agreement) in connection with (i) its own audit and investigation of Borrower and the Property; (ii) the negotiation, preparation and execution of this Agreement (including, without limitation, the satisfaction or attempted satisfaction of
any of the conditions set forth in Article IV), the Security Instrument and the other Loan Documents and the making of the Loan; (iii) any Appraisals; (iv) the creation, perfection or protection of Lender’s Lien on the Property
and any additional collateral (including, without limitation, any fees and expenses for title and lien searches, local counsel in various jurisdictions, filing and recording fees and taxes, duplication costs and corporate search fees);
(v) administration of this Agreement, the other Loan Documents, the Loan and the Collateral; and (vi) the protection, collection or enforcement of any of the Obligations or the Collateral, including Protective Advances. Lender shall
endeavor in good faith to provide Borrower with written notice of any expected increased costs and expenses before incurring them. 
 (b) After Event of Default. 
 Borrower further agrees to pay, or reimburse Lender, for all reasonable
out-of-pocket costs and expenses, including without limitation reasonable attorneys’ fees and disbursements incurred by Lender after the occurrence of an Event of Default (i) in enforcing any Obligation or in foreclosing against the
Collateral or exercising or enforcing any other right or remedy available by reason of such Event of Default; (ii) in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a
“work-out” or in any insolvency or bankruptcy proceeding; (iii) in commencing, defending or intervening in any litigation or in filing a petition, complaint, answer, motion or other pleadings in any legal proceeding relating to
Borrower and related to or arising out of the transactions contemplated hereby; (iv) in taking any other action in or with respect to any suit or proceeding (whether in bankruptcy or otherwise); (v) in protecting, preserving, collecting,
leasing, selling, taking possession of, or liquidating any of the Collateral; or (vi) in attempting to enforce or enforcing any Lien in any of the Collateral or any other rights under the Security Instrument. 
 11.2 Indemnity. 
 Borrower further agrees to defend, protect, indemnify and hold harmless Lender and each of its Affiliates and participants and each of the respective officers, directors, employees, agents, attorneys and consultants (including, without
limitation, those retained in 

  

 47 

 
connection with the satisfaction or attempted satisfaction of any of the conditions set forth in Article IV) of each of the foregoing (collectively
called the “Indemnitees”) from and against any and all Liabilities and Costs imposed on, incurred by, or asserted against such Indemnitees (whether based on any federal or state laws or other statutory regulations, including,
without limitation, securities and commercial laws and regulations, under common law or in equity, and based upon contract or otherwise, including any Liabilities and Costs arising as a result of a “prohibited transaction” under ERISA to
the extent arising from or in connection with the past, present or future operations of Borrower) in any manner relating to or arising out of this Agreement, the Security Instrument or the other Loan Documents, or any act, event or transaction
related or attendant thereto, the making of and participation in the Loan and the management of the Loan, or the use or intended use of the proceeds of the Loan (collectively, the “Indemnified Matters”); provided,
however, that Borrower shall not have any obligation to an Indemnitee hereunder with respect to (a) matters for which such Indemnitee has been compensated pursuant to or for which an exemption is provided in any provision of this
Agreement, and (b) Indemnified Matters to the extent caused by or resulting from the willful misconduct or gross negligence of that Indemnitee, as determined by a court of competent jurisdiction. To the extent that the undertaking to indemnify,
pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, Borrower shall contribute the maximum portion which it is permitted to pay and satisfy under applicable law, to the
payment and satisfaction of all Indemnified Matters incurred by the Indemnitees. 
 11.3 Change in Accounting Principles. 

Except as otherwise provided herein, if any changes in accounting principles from those used in the preparation of the most recent
financial statements delivered to Lender pursuant to the terms hereof are hereinafter required or permitted by the rules, regulations, pronouncements and opinions of the Financial Accounting Standards Board or the American Institute of Certified
Public Accountants (or successors thereto or agencies with similar functions) and are adopted by Borrower with the agreement of its independent certified public accountants and such changes result in a change in the method of calculation of any of
the financial covenants, standards or terms found herein, the parties hereto agree to enter into negotiations in order to amend such provisions so as to equitably reflect such changes with the desired result that the criteria for evaluating the
financial condition of Borrower shall be the same after such changes as if such changes had not been made; provided, however, that no change in GAAP that would affect the method of calculation of any of the financial covenants,
standards or terms shall be given effect in such calculations until such provisions are amended, in a manner satisfactory to Lender, to so reflect such change in accounting principles. 
 11.4 Amendments and Waivers. 
 (a) No amendment or modification of any provision of this Agreement shall be effective without the written agreement of Lender and Borrower, and (b) no termination or waiver of any provision of this Agreement, or consent to any
departure by Borrower therefrom, shall in any event be effective without the written concurrence of Lender, which Lender shall have the right to grant or withhold at its sole discretion. Any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or demand on Borrower in any case shall entitle Borrower to any other further notice or demand in similar or other circumstances. 
  

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 11.5 Independence of Covenants. 
 All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or be otherwise within the limitations of, another covenant shall not avoid the occurrence of an Event of Default or Unmatured Event of Default if such action is taken or condition
exists, and if a particular action or condition is expressly permitted under any covenant, unless expressly limited to such covenant, the fact that it would not be permitted under the general provisions of another covenant shall not constitute an
Event of Default or Unmatured Event of Default if such action is taken or condition exists. 
 11.6 Notices and Delivery. 

Unless otherwise specifically provided herein, any consent, notice or other communication herein required or permitted to be given
shall be in writing and may be personally served, telecopied or sent by courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy (or on the next Business
Day if such telecopy is received on a non-Business Day or after 5:00 p.m. (at the office of the recipient) on a Business Day) or delivery by the United States mail (registered or certified). Any party delivering a communication by telecopy shall
also send a copy thereof by one of the other means provided in this Section 11.6. Notices to Lender pursuant to Article II or the Note shall not be effective until received by Lender. For the purposes hereof, the addresses of the
parties hereto (until notice of a change thereof is delivered as provided in this Section 11.6) shall be as set forth below each party’s name on the signature pages hereof, or, as to each party, at such other address as may be
designated by such party in a written notice to all of the other parties. 
 11.7 Survival of Warranties, Indemnities and Agreements.

 All agreements, representations, warranties and indemnities made or given herein shall survive the execution and delivery
of this Agreement and the other Loan Documents and the making and repayment of the Loan, and such indemnities shall survive termination hereof. 
 11.8 Failure or Indulgence Not Waiver; Remedies Cumulative. 
 No failure or delay on the part of Lender in
the exercise of any power, right or privilege under any of the Loan Documents shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing under the Loan Documents are cumulative to and not exclusive of any rights or remedies otherwise
available. 
  

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 11.9 Marshalling; Payments Set Aside. 
 Lender shall not be under any obligation to marshal any assets in favor of Borrower or any other Person or against or in payment of any or
all of the Obligations. To the extent that Borrower makes a payment or payments to Lender or enforces its Liens or exercise its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent
of such recovery, the Obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or
setoff had not occurred. 
 11.10 Severability. 
 In case any provision in or obligation under this Agreement or the other Loan Documents shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby, provided, however,
that if the rates of interest or any other amount payable hereunder, or the collectibility thereof, are declared to be or become invalid, illegal or unenforceable, Lender’s obligations to make the Loan shall not be enforceable. 
 11.11 Headings. 
 Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect. 
 11.12 Governing Law; Waiver. 
 THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA. 
 11.13 Limitation of Liability. 
 To the extent permitted by applicable law, no claim may be made by Borrower
or any other Person against Lender, or the affiliates, directors, officers, employees, attorneys of Lender, for any special or punitive damages (as opposed to direct, indirect or consequential damages) in respect of any claim for breach of contract
or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and Borrower hereby waives, releases and agrees not to sue upon any claim
for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
  

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 11.14 Successors and Assigns. 
 This Agreement and the other Loan Documents shall be binding upon the parties hereto and their respective successors and assigns and shall
inure to the benefit of the parties hereto and the successors and permitted assigns of Lender. Subject to Section 11.20, the terms and provisions of this Agreement shall inure to the benefit of any assignee or transferee of the Loan and
the commitment of Lender under this Agreement or any portion thereof, and in the event of any permitted such transfer or assignment, the rights and privileges herein conferred upon Lender shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions hereof. Borrower’s rights or any interest therein hereunder, and Borrower’s duties and Obligations hereunder, shall not be assigned without the consent of Lender. 

11.15 Consent to Jurisdiction and Service of Process; Waiver of Jury Trial. 
 ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST BORROWER WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE AND ALL JUDICIAL
PROCEEDINGS BROUGHT BY BORROWER WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION HAVING SITUS WITHIN THE BOUNDARIES OF THE FEDERAL COURT DISTRICT OF THE CENTRAL
DISTRICT OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, BORROWER ACCEPTS, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY AGREES TO BE BOUND
BY ANY FINAL JUDGMENT RENDERED THEREBY FROM WHICH NO APPEAL HAS BEEN TAKEN OR IS AVAILABLE. BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF
BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS NOTICE ADDRESS SPECIFIED ON THE SIGNATURE PAGES HEREOF. TO THE EXTENT PERMITTED BY THEN APPLICABLE LAW, BORROWER AND LENDER IRREVOCABLY WAIVE (A) TRIAL BY JURY IN ANY ACTION OR PROCEEDING
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, AND (B) ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH ANY OF THEM MAY NOW OR HEREAFTER HAVE
TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY JURISDICTION SET FORTH ABOVE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT OF LENDER TO BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. 
 11.16 Counterparts;
Effectiveness; Inconsistencies. 
 This Agreement and any amendments, waivers, consents or supplements may be executed in
counterparts, each of which when so executed and delivered shall be deemed an original, but all such together shall constitute but one and the same instrument. This Agreement 

  

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shall become effective when Borrower and Lender have duly executed and delivered signature pages of this Agreement to each other. This Agreement and each of
the other Loan Documents shall be construed to the extent reasonable to be consistent one with the other, but to the extent that the terms and conditions of this Agreement are actually and directly inconsistent with the terms and conditions of any
other Loan Document, this Agreement shall govern. 
 11.17 Performance of Obligations. 
 Borrower agrees that Lender may, but shall have no obligation to, make any payment or perform any act required of Borrower under any Loan
Document or take any other action which Lender in its discretion deems necessary or desirable to protect or preserve the Collateral, including without limitation, any action to (a) pay or discharge taxes, liens, security interests or other
encumbrances levied or placed on or threatened against any Collateral, and (b) effect any repairs or obtain any insurance called for by the terms of any of the Loan Documents and to pay all or any part of the premiums therefor and the costs
thereof. 
 11.18 Construction. 
 The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. 
 11.19 Entire Agreement.

 This Agreement, taken together with all of the other Loan Documents and all certificates and other documents delivered by
Borrower to Lender (including documents incorporating separate agreements relating to the payment of fees), embodies the entire agreement and supersede all prior agreements, written and oral, relating to the subject matter hereof. 
 11.20 Assignments and Participations. 
 (a) After first obtaining the approval of Borrower (other than upon the occurrence and during the continuance of any Event of Default), which approval will not be unreasonably withheld, Lender may assign, to one or
more banks or other institutional lenders, all or a portion of its rights and obligations under this Agreement and other Loan Documents; provided, however, that (i) after giving effect to such assignment, the aggregate amount of
the Loan Commitment retained by Lender and not participated out shall in no event be less than twenty percent (20%) thereof and (ii) subject to the rights that an assignee of Lender may have to remove Lender, Lender shall at all times act
as administrative agent with respect to the Loan. Borrower agrees to pay to Lender, for any such administrative agent services, a reasonable administrative fee not to exceed $20,000 per annum. Without restricting the right of Borrower to reasonably
object to any bank or other institutional lender becoming an assignee of an interest of Lender hereunder, each proposed assignee must be a bank or other institutional lender which (A) has (or, in the case of a lender which is a subsidiary, such
lender’s parent has) a rating of its 

  

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senior unsecured debt obligations of not less than Baa-2 by Moody’s Investors Services or a comparable rating by a rating agency acceptable to Lender
and (B) has total assets in excess of Ten Billion Dollars ($10,000,000,000). Unless Borrower gives written notice to Lender that it objects to the proposed assignment (together with a written explanation of the reasons behind such objection)
within ten (10) days following receipt of Lender’s written request for approval of the proposed assignment, Borrower shall be deemed to have approved such assignment. Upon the effective date specified in the applicable assignment and
assumption agreement, (X) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such assignment and assumption, have the rights and obligations of Lender
hereunder, and (Y) Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such assignment and assumption agreement, relinquish its rights and be released from its obligations under this Agreement.

 (b) Lender may sell participations to one or more financial institutions, private investors, and/or other entities in or to
all or a portion of its rights and obligations under this Agreement and other Loan Documents; provided, however, that (i) Lender’s obligations under this Agreement shall remain unchanged, (ii) Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) Borrower shall continue to deal solely and directly with Lender in connection with Lender’s rights and obligations under this Agreement and with regard
to any and all payments to be made under this Agreement, (iv) after giving effect to such participation, the aggregate amount of the Loan Commitment retained by Lender that has not been assigned or participated out shall in no event be less
than twenty percent (20%) thereof, and (v) the holder of any such participation shall not be entitled to voting rights under their participation agreement except for voting rights with respect to (A) increases in the Loan Commitment;
(B) extensions of the Maturity Date not expressly provided for in Section 2.1(c) above; (C) decreases in the interest rates or fees except as described in this Agreement; and (D) the release of all or any portion of any
Property. 
 (c) In the event of any such sale, assignment or participation, Lender and the parties to such transaction shall
share in the rights and obligations of Lender as set forth in the Loan Documents only as and to the extent they agree among themselves. Borrower will use reasonable efforts to cooperate with Lender in connection with the assignment of interests
under this Agreement or the sale of participations herein, and, upon written request by Lender, Borrower shall enter into such amendments or modifications to the Loan Documents as may be reasonably required in order to evidence any such sale,
assignment or participation, including separate Notes, so long as (i) Borrower’s obligations are not increased thereunder in any material respect and (ii) Borrower incurs no additional costs or additional liabilities in connection
therewith. 
 (d) Anything in this Agreement to the contrary notwithstanding, and without the need to comply with any of the
formal or procedural requirements of this Agreement, including the other provisions of this Section 11.20, Lender may at any time and from time to time pledge and assign all or any portion of its rights under all or any of the Loan
Documents to a Federal Reserve Bank; provided that no such pledge or assignment shall release Lender from its obligations thereunder. 
  

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 11.21 Limitation on Personal Liability of Shareholders, Partners and Members. 
 Anything to the contrary contained in any Loan Document, none of the constituent shareholders, partners or members in Borrower shall have
any liability whatsoever for the payment or performance of any of the Obligations. Without limiting in any manner the generality of the foregoing, Lender shall have no right to recover from any constituent shareholder, partner or member in Borrower
any Distribution from Borrower; provided, however, that nothing in this Section 11.21 is intended, or shall be deemed, to constitute a waiver of any rights Lender may have under the United States Bankruptcy Code or other
applicable law with respect to fraudulent transfers or conveyances. 
 11.22 Cross-Default; Cross-Collateralization. 
 Borrower hereby acknowledges that, as consideration for Lender making the Loan to Borrower, the Loan shall be cross-defaulted and
cross-collateralized with the loans set forth on Schedule 11.22 attached hereto. Borrower further acknowledges that Lender would be unwilling to make the Loan if Borrower did not agree to cooperate with Lender in executing any and all
documents that Lender requests that Borrower execute in order to evidence such cross-defaults and cross-collateralization, including, without limitation, one or more modification agreements in the form attached hereto as Exhibit E, or any
additional mortgages or deeds of trust to be recorded against the Property. Notwithstanding anything to the contrary contained in any of the Loan Documents, any and all costs incurred by Lender with respect to the foregoing shall be reimbursed by
Borrower to Lender, including, without limitation, the costs of any amendments or endorsements to Lender’s policy of title insurance. 
 11.23 USA Patriot Act Notice, Compliance. 
 The USA Patriot Act of 2001 (Public Law 107-56) and federal
regulations issued with respect thereto require all financial institutions to obtain, verify and record certain information that identifies individuals or business entities which open an “account” with such financial institution.
Consequently, Lender may from time-to-time request, and Borrower shall provide to Lender, Borrower’s name, address, tax identification number and/or such other identification information as shall be necessary for Lender to comply with federal
law. An “account” for this purpose may include, without limitation, a deposit account, cash management service, a transaction or asset account, a credit account, a loan or other extension of credit, and/or other financial services product.

 11.24 Electronic Document Deliveries. 
 Unless otherwise directed by Lender, documents required to be delivered to Lender pursuant to the Loan Documents shall be delivered by electronic communication and delivery, including, the Internet, e-mail or intranet
websites to which Lender has access (including a commercial, third-party website such as www.Edgar.com <http://www.Edgar.com> or a website sponsored or hosted by Lender or the Borrower) provided that the foregoing shall not apply to notices
delivered to Lender pursuant to the Note. Borrower may, in its discretion, but shall not be required to, agree to accept notices and other communications to it hereunder by electronic 

  

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delivery pursuant to procedures approved by it for all or particular notices or communications. Documents or notices delivered electronically shall be deemed
to have been delivered twenty-four (24) hours after the date and time on which Lender or Borrower posts such documents or the documents become available on a commercial website and Lender or Borrower notifies the other party of said posting and
provides a link thereto provided if such notice or other communication is not sent or posted during the normal business hours of the recipient, said posting date and time shall be deemed to have commenced as of 9:00 a.m. on the opening of business
on the next business day for the recipient. Notwithstanding anything contained herein, Borrower shall deliver paper copies of any documents to the Lender, if Lender requests such paper copies, until a written request to cease delivering paper copies
is given by Lender. Lender shall have no obligation to request the delivery of or to maintain paper copies of the documents delivered electronically. For purposes of this Section 11.24, “Lender” shall mean Wells Fargo Bank,
National Association and any successors or assigns. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

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 IN WITNESS WHEREOF, this Agreement has been duly executed on the date set forth above. 
  

					
	LENDER:	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
			
		 	By:	 	/s/ John A. Ferguson
		 	Name:	 	John A. Ferguson
		 	Title:	 	Senior Vice President
		
		 	ADDRESS FOR NOTICE AND DELIVERY:
		
		 	Real Estate Group
		 	Orange County
		 	2030 Main Street, Suite 800
		 	Irvine, CA 92614
		 	Attn:     John Ferguson
		 	             Senior Vice President
		 	Tel: (949) 251-4310
		 	Fax: (949) 851-9728

 [Signatures Continue on Next Page] 

													
	BORROWER:	 	KBS WOODFIELD PRESERVE, LLC,
		 	a Delaware limited liability company
			
		 	By:	 	KBS REIT ACQUISITION XXX, LLC,
		 		 	a Delaware limited liability company,
		 		 	its sole member
				
		 		 	By:	 	KBS REIT PROPERTIES, LLC,
		 		 		 	a Delaware limited liability company,
		 		 		 	its sole member
					
		 		 		 	By:	 	KBS LIMITED PARTNERSHIP,
		 		 		 		 	a Delaware limited partnership,
		 		 		 		 	its sole member
						
		 		 		 		 	By:	 	KBS REAL ESTATE INVESTMENT TRUST, INC.,
		 		 		 		 		 	a Maryland corporation,
		 		 		 		 		 	general partner
							
		 		 		 		 		 	By:	 	/s/ Charles J. Schreiber, Jr.
		 		 		 		 		 		 	Charles J. Schreiber, Jr.
		 		 		 		 		 		 	Chief Executive Officer

  

			
	ADDRESS FOR NOTICE AND DELIVERY:	  	
		  	With a copy to:
	c/o KBS Capital Advisors, LLC	  	Morgan, Lewis & Bockius LLP
	620 Newport Center Drive, Suite 1300	  	5 Park Plaza, Suite 1750
	Newport Beach, CA 92660	  	Irvine, CA 92614
	Attention: Stacie Yamane	  	Attention: L. Bruce Fischer, Esq.
	Tel: (949) 417-6560	  	Tel: (949) 399-7145
	Fax: (949) 417-6520	  	Fax: (949) 399-7001
	Attention: Robin Burke	  	
	Tel: (202) 552-7558	  	
	Fax: (202) 822-1340

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