Document:

Contract of Sale related to  Mountain View Corporate Center

 Exhibit 10.2 
 CONTRACT OF SALE 
 THIS CONTRACT OF SALE (this “Agreement”) is made and entered into
as of the 11th day of July, 2008, by and between MOUNTAINVIEW REALTY HOLDING COMPANY, a Delaware corporation, having an address at 245 Park Avenue, New York, New York 10167 (“Seller”) and KBSII MOUNTAIN VIEW, LLC, a Delaware
limited liability company, having an address at 590 Madison Avenue, 26th Floor, New York, New York 10022 (“Purchaser”). 
 WITNESSETH: 
 A. Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, at the price and upon the
terms and conditions set forth in this Agreement, (a) that certain parcel of land commonly known as 120 Mountain View Boulevard, Bernards Township, New Jersey, and more particularly described on Exhibit A attached hereto and made a part
hereof (the “Land”), (b) the buildings, improvements, and structures located upon the Land (collectively, the “Improvements”), (c) all other easements and rights appurtenant to the Land, if any (collectively, the
“Appurtenant Rights”), (d) all right, title and interest of Seller in, to and under the Leases (as hereinafter defined) and, to the extent assignable, the Contracts (as hereinafter defined), (e) all right, title and interest of
Seller, if any, in and to the fixtures, equipment and other tangible personal property owned by Seller and attached or appurtenant to the Land and the Improvements (collectively, the “Personal Property”), including, without limitation,
those items listed on the attached Exhibit B, and (f) to the extent assignable without consent or payment of any kind, all governmental permits, licenses and approvals, warranties and guarantees that Seller has received in connection
with any work or services performed with respect to, or equipment installed in, the Improvements (collectively, the “Intangible Property”; the Land, the Appurtenant Rights, the Improvements, the Leases, the Contracts, the Personal Property
and the Intangible Property, collectively, the “Property”). 
 B. Purchaser acknowledges that the Property is being sold on an
“as is” “where is” and “with all faults” basis on the terms and conditions hereinafter set forth. 
 NOW,
THEREFORE, for $10.00 in hand paid and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Purchase and Sale. Upon the terms and conditions hereinafter set forth, Seller shall sell to Purchaser, and Purchaser shall purchase from
Seller, the Property. 
 2. Purchase Price. The purchase price (the “Purchase Price”) for the Property shall be the sum of
THIRTY MILLION and 00/100 Dollars ($30,000,000.00). 
 3. Payment of Purchase Price. The Purchase Price shall be paid to Seller by
Purchaser as follows: 
 3.1 Deposit. Contemporaneously with the execution and delivery of this Agreement by Seller and Purchaser,
Purchaser shall deposit with LandAmerica Commercial Services, 1920 Main Street, Suite 1200, Irvine, California 92614, Escrow Officer: Joy Eaton, Telephone (949) 930-8798; Telecopier (949) 271-5762 (“Escrowee”), by wire transfer
of 

 
immediately available federal funds to an account designated by Escrowee (the “Escrow Account”), the sum of Two Million Five Hundred Thousand and
00/100 Dollars ($2,500,000.00) (together with all interest thereon, but excluding the Independent Consideration (as hereinafter defined), the “Deposit”), which Deposit shall be held by Escrowee pursuant to the escrow agreement (the
“Escrow Agreement”) attached hereto as Exhibit N and hereby made a part hereof. If Purchaser is entitled to terminate this Agreement and receive a refund of the Deposit pursuant to the terms hereof and Seller has notified Purchaser
in writing that Purchaser is in breach of any of its obligations under this Agreement (a “Pre-Closing Breach”), Escrowee shall release the Deposit to Purchaser, less any amounts Seller notifies Purchaser and Escrowee in writing (which
notification must be given no more than five (5) Business Days after Purchaser’s request for the return of the Deposit) that Escrowee needs to holdback to cover any loss estimated by Seller to have occurred as a result of Purchaser’s
Pre-Closing Breach (“Pre-Closing Breach Amount”), which Pre-Closing Breach Amount shall be held by Escrowee until such time as either (x) Purchaser and Seller reach an agreement and jointly notify Escrowee in writing as to the amount
Seller is owed for Purchaser’s Pre-Closing Breach, and the remaining amount, if any, to be released to Purchaser, or (y) the Purchaser’s Pre-Closing Breach has been fully adjudicated and Escrowee receives a final judgment, order,
ruling or injunction issued by a court of competent jurisdiction). Notwithstanding the foregoing or anything to the contrary contained herein, the failure of Seller to assert a Pre-Closing Breach prior to the expiration of the five (5) Business
Day period provided for herein shall not in any way constitute a waiver of Seller’s rights to subsequently assert the existence of such Pre-Closing Breach. 
 3.2 Independent Consideration. A portion of the amount deposited by Purchaser pursuant to Section 3.1, in the amount of One Hundred Dollars ($100) (the “Independent Consideration”) shall be
earned by Seller upon execution and delivery of this Agreement by Seller and Purchaser. Seller and Purchaser hereby mutually acknowledge and agree that the Independent Consideration represents adequate bargained for consideration for Seller’s
execution and delivery of this Agreement and Purchaser’s right to have inspected the Property pursuant to the terms of this Agreement. The Independent Consideration is in addition to and independent of any other consideration or payment
provided for in this Agreement and is nonrefundable in all events. Upon the Closing (as hereinafter defined) or earlier termination of this Agreement, the Independent Consideration shall be paid to Seller. 
 3.3 Closing Payment. Provided that all conditions precedent expressly set forth in this Agreement to Purchaser’s obligations hereunder have
been satisfied or waived by Purchaser, the Purchase Price, as adjusted by the application of the Deposit and by the prorations and credits specified herein, shall be (i) deposited by Purchaser by wire transfer of immediately available federal
funds to an account or accounts designated by Escrowee and (ii) paid by Escrowee to Seller on the Closing Date (as hereinafter defined) by wire transfer of immediately available federal funds to an account or accounts designated in writing by
Seller (the amount being paid under this Section 3.3 being herein called the “Closing Payment”). 
 4. Title Matters; Due
Diligence Review; Estoppel Certificates; Conditions Precedent. 
 4.1 Title Matters. 

 4.1.1 Title to the Property. 
 (a) As a condition to the Closing, Lawyers Title Insurance Corporation, 915 Wilshire Boulevard, Suite 2100, Los Angeles, California 90017, Title Officer:
Anthony A. Behrstock, Telephone (213) 330-2333, Telecopier (213) 330-3113 (the “Title Company”) shall have committed to insure Purchaser as the fee owner of the Property in the amount of the Purchase Price by issuance of an ALTA
owner’s title insurance policy (the “Owner’s Policy”) and in the standard form issued by the Title Company in the State of New Jersey, subject only to the Permitted Exceptions (as hereinafter defined). 
 (b) Purchaser shall order, at its sole cost and expense, within five (5) days following the date hereof, (i) a commitment for an owner’s
fee title insurance policy or policies with respect to the Property (the “Title Commitment”) from the Title Company and (ii) a survey of the Property prepared by a surveyor registered in the State of New Jersey, certified by said
surveyor to Purchaser and Seller as having been prepared in accordance with the minimum detail requirements of the ALTA land survey requirements (the “Survey”), and shall cause the Title Commitment, together with true, legible and complete
copies of all instruments giving rise to any defects or exceptions to title to the Property, and the Survey to be delivered to Seller’s attorneys concurrently with the delivery thereof to Purchaser or Purchaser’s attorneys. Attached hereto
as Exhibit E is a notice (the “Title Objection Notice”) identifying those exceptions(s) to title to the Property appearing in the Title Commitment other than the Permitted Exceptions (such exception(s) being herein called,
collectively, the “Unpermitted Exceptions”), subject to which Purchaser is unwilling to accept title, including (y) those matters reflected on the Survey that Purchaser has disapproved of, and (z) zoning matters that were only
ascertainable upon delivery of the Survey. Seller, in its sole and absolute discretion, may undertake to eliminate the same subject to the terms and conditions of this Section 4.1. Purchaser hereby waives any right Purchaser may have to
advance, as objections to title or as grounds for Purchaser’s refusal to close this transaction, any exception to title, survey or zoning matters which are not identified in the Title Objection Notice unless (i) with respect to title
objections only (as opposed to survey or zoning matters), such exception was first raised by the Title Company subsequent to the date of the Title Commitment, and (ii) Purchaser shall notify Seller of the same within five (5) days
following the date the exception is first identified by the Title Company (failure to so notify Seller shall be deemed to be a waiver by Purchaser of its right to raise such Unpermitted Exception as an objection to title or as a ground for
Purchaser’s refusal to close the transaction contemplated by this Agreement). Notwithstanding anything to the contrary contained in this Agreement, Seller, in its sole discretion, shall have the right to adjourn the Closing for a period not to
exceed thirty (30) days in the aggregate (such period of time being herein called the “Extension Period”), provided that Seller shall notify Purchaser, in writing, within ten (10) days after receipt by Seller of the Title
Objection Notice, whether or not it will endeavor to eliminate such Unpermitted Exceptions. Notwithstanding the foregoing or anything to the contrary set forth in this Agreement, Seller shall not under any circumstance be required or obligated to
cause the cure or removal of any Unpermitted Exception including, without limitation, to bring any action or proceeding, to make any payments or otherwise to incur any expense in order to eliminate any Unpermitted Exception or to arrange for title
insurance insuring against enforcement of such Unpermitted Exception against, or collection of the same out of, the Property, notwithstanding that Seller may have attempted to do so, or may have adjourned the Scheduled Closing Date for such purpose;
provided, however, Seller shall (x) satisfy any 

 
mortgage or deed of trust placed on the Property by Seller or expressly assumed by Seller, and (y) use commercially reasonable efforts to cause the
removal (by bonding or otherwise) of other monetary liens encumbering the Property which are of an ascertainable amount and do not exceed Twenty Five Thousand Dollars ($25,000) in the aggregate and are not the responsibility of any tenant of the
Property. 
 (c) In the event that Seller is unable, or elects not, to eliminate all Unpermitted Exceptions in accordance with the provisions
of this Section 4.1.1, or to arrange for title insurance, without special premium to Purchaser, insuring against enforcement of such Unpermitted Exceptions against, or collection of the same out of, the Property, and to convey title to the
Property in accordance with the terms of this Agreement on or before the Closing Date (whether or not the Closing is adjourned as provided in Section 4.1.1(b)), Seller shall notify Purchaser that it elects not to remove the same, in which event
Purchaser shall have the right, as its sole remedy for such election of Seller, by delivery of written notice to Seller within three (3) Business Days following receipt of notice from Seller of its election not to remove such Unpermitted
Exceptions, to either (i) terminate this Agreement by written notice delivered to Seller (in which event the Deposit shall be returned to Purchaser and no party hereto shall have any further obligations in connection herewith except under those
provisions that expressly survive the Closing or a termination of this Agreement; provided, however, that if Seller has notified Purchaser as and in the manner provided by Section 3.1 of this Agreement, Escrowee shall release the Deposit to
Purchaser, less the Pre-Closing Breach Amount, which Pre-Closing Breach Amount shall be held by Escrowee until the same is to be released as and in the manner provided by Section 3.1 of this Agreement), or (ii) accept title to the Property
subject to such Unpermitted Exception(s) without a reduction in, abatement of, or credit against, the Purchase Price. The failure of Purchaser to deliver timely any written notice of election under this Section 4.1.1(c) shall be conclusively
deemed to be an election under clause (ii) above. 
 (d) If, on the Closing Date, there are any liens or encumbrances that Seller is
obligated to discharge under this Agreement, Seller shall have the right (but not the obligation), as to liens and/or encumbrances of an ascertainable amount not to exceed $100,000 in the aggregate, to either (i) arrange, at Seller’s cost
and expense, for affirmative title insurance or special endorsements reasonably acceptable to Purchaser insuring against enforcement of such liens or encumbrances against, or collection of the same out of, the Property, or (ii) use any portion
of the Purchase Price to pay and discharge the same, either by way of payment or by alternative manner reasonably satisfactory to the Title Company, and the same shall not be deemed to be Unpermitted Exceptions. 
 4.1.2 Permitted Exceptions to Title. The Property shall be sold and conveyed subject to the following exceptions to title (the “Permitted
Exceptions”): 
 (a) any state of facts that an accurate survey may show; 
 (b) all laws, ordinances, rules and regulations of the United States, the State of New Jersey, or any agency, department, commission, bureau or
instrumentality of any of the foregoing having jurisdiction over the Property (each, a “Governmental Authority”), as the same may now exist or may be hereafter modified, supplemented or promulgated; 

 (c) all presently existing and future liens of real estate taxes or assessments and water rates, water
meter charges, water frontage charges and sewer taxes, rents and charges, if any, provided that such items are not yet due and payable and are apportioned as provided in this Agreement; 
 (d) any other matter or thing affecting title to the Property that Purchaser shall have agreed or be deemed to have agreed to waive as an Unpermitted
Exception; 
 (e) all violations of laws, ordinances, orders, requirements or regulations of any Governmental Authority applicable to the
Property and existing on the Closing Date, whether or not noted in the records of or issued by any Governmental Authority; 
 (f) all utility
easements of record which do not interfere with the present use of the Property; and 
 (g) the printed exceptions which appear in the
standard form Owner’s Policy of the title insurance issued by the Title Company in the State of New Jersey, but expressly excluding (a) those that could be omitted by virtue of the delivery of the Title Affidavit (as hereinafter defined),
and (b) any labor or material liens. 
 4.2 Due Diligence Reviews. Except for matters governed by the provisions of
Section 4.1 above, Purchaser hereby acknowledges and agrees that it has performed and completed all of Purchaser’s due diligence examinations, reviews and inspections of all matters pertaining to the purchase of the Property, including all
leases and service contracts, and all physical, environmental and compliance matters and conditions respecting the Property (collectively, the “Investigations”); provided, however, that so long as this Agreement has not been terminated,
Purchaser shall continue to have access to the Property at all reasonable times during normal business hours subsequent to the date hereof and prior to Closing so long as Purchaser complies with each of the provisions of this Agreement, including,
without limitation, the provisions of this Section 4.2 relating to such entry and inspection. Seller shall provide Purchaser with reasonable access to the Property upon reasonable advance notice, shall endeavor to make the property manager of
the Property available for an interview by Purchaser, and shall also promptly make available to Purchaser to the extent not already provided, at the offices of Seller and/or the property manager of the Property access to such leases, service
contracts, and other contracts and agreements with respect to the Property in Seller’s possession as Purchaser shall reasonably request (collectively, the “Inspection Documents”), all upon reasonable advance written notice; provided,
however, in no event shall Seller be obligated to make available (1) any document or correspondence which would be subject to the attorney- client privilege; (2) any document or item which Seller is contractually or otherwise bound to keep
confidential; (3) any documents pertaining to the marketing of the Property for sale to prospective purchasers; (4) any internal memoranda, reports or assessments of Seller or Seller’s affiliates relating to Seller’s valuation of
the Property; (5) appraisals of the Property whether prepared internally by Seller or Seller’s affiliates or externally; or (6) any documents which Seller considers confidential or proprietary. 
 Purchaser has informed Seller that Purchaser is required by law to complete with respect to certain matters relating to the Property an audit commonly
known as a “3-14” Audit 

 
(“Purchaser’s 3-14 Audit”). Purchaser acknowledges that Seller has delivered to Purchaser the documents which are described on Exhibit
P attached hereto, to the extent in existence and in Seller’s possession or control (collectively, “Purchaser’s 3-14 Audit Documents,” and, together with the Inspection Documents, the “Property Documents”).

 Any entry upon the Property whether prior to or on or after the date hereof and all Investigations shall be made or performed during
Seller’s normal business hours and at the sole risk and expense of Purchaser, and shall not interfere with the activities on or about the Property of Seller, its tenants and their employees and invitees. Purchaser shall: 
 (a) promptly repair any damage to the Property resulting from any such Investigations by Purchaser or Purchaser’s Representatives and replace, refill
and regrade any holes made in, or excavations of, any portion of the Property used for such Investigations so that the Property shall be in the same condition that it existed in prior to such Investigations; 
 (b) fully comply with all laws applicable to the Investigations and all other activities undertaken in connection therewith; 
 (c) permit Seller to have a representative present during all Investigations undertaken hereunder; 
 (d) take all actions and implement all protections necessary to ensure that the Investigations and the equipment, materials, and substances generated,
used or brought onto the Property in connection with the Investigations, pose no threat to the safety or health of persons or the environment, and cause no damage to the Property or other property of Seller or other persons; 
 (e) if this Agreement is terminated for any reason other than Seller’s default, furnish to Seller, at Seller’s request and at no cost or
expense to Seller, copies of all surveys, soil test results, engineering, asbestos, environmental and other studies and reports (other than internal analysis and proprietary information of the Purchaser) relating to the Investigations which
Purchaser shall obtain with respect to the Property, but with no representations or warranties as to the accuracy or completeness of the same and subject to any confidentiality limitations set forth in this Agreement; 
 (f) maintain or cause to be maintained, at Purchaser’s expense, a policy of commercial general liability insurance, with a broad form contractual
liability endorsement and with a combined single limit of not less than $1,000,000.00 per occurrence for bodily injury and property damage, automobile liability coverage including owned and hired vehicles with a combined single limit of
$1,000,000.00 per occurrence for bodily injury and property damage, and an excess umbrella liability policy for bodily injury and property damage in the amount of $5,000,000.00, insuring Purchaser and Seller as additional insureds, against any
injuries or damages to persons or property that may result from or are related to (i) Purchaser’s and/or Purchaser’s Representatives’ (as hereinafter defined) entry upon the Property, (ii) any Investigations or other
activities conducted thereon, and/or (iii) any and all other activities undertaken by Purchaser and/or Purchaser’s Representatives, all of which insurance shall be on an “occurrence form” and otherwise in such forms acceptable to
Seller and with an insurance 

 
company acceptable to Seller, and deliver a copy of such insurance policy to Seller prior to the first entry on the Property; 
 (g) not permit the Investigations or any other activities undertaken by Purchaser or Purchaser’s Representatives to result in any liens, judgments
or other encumbrances being filed or recorded against the Property, and Purchaser shall, at its sole cost and expense, immediately discharge of record any such liens or encumbrances that are so filed or recorded (including, without limitation, liens
for services, labor or materials furnished); and 
 (h) indemnify Seller and any agent, advisor, representative, affiliate, employee,
director, partner, member, beneficiary, investor, servant, shareholder, trustee or other person or entity acting on Seller’s behalf or otherwise related to or affiliated with Seller (collectively, “Seller Related Parties”) and hold
harmless Seller and Seller Related Parties from and against any and all claims, demands, causes of action, losses, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees and disbursements), suffered or incurred
by Seller or any Seller Related Party and arising out of or in connection with (i) Purchaser’s and/or Purchaser’s Representatives’ entry upon the Property, (ii) any Investigations or other activities conducted thereon by
Purchaser or Purchaser’s Representatives, (iii) any liens or encumbrances filed or recorded against the Property as a consequence of the Investigations and/or (iv) any and all other activities undertaken by Purchaser or
Purchaser’s Representatives with respect to the Property. The foregoing indemnity shall not include any claims, demands, causes of action, losses, damages, liabilities, costs or expenses (including, without limitation, attorneys’ fees and
disbursements) that result solely from the mere discovery, by Purchaser or Purchaser’s Representatives, of pre-existing conditions on the Property during Investigations conducted pursuant to, and in accordance with, the terms of this Agreement,
or any loss arising from Seller’s own gross negligence or willful misconduct. 
 Without limiting the foregoing, in no event shall
Purchaser or Purchaser’s Representatives, without the prior written consent of Seller: (x) make any intrusive physical testing (environmental, structural or otherwise) at the Property (such as soil borings, water samplings or the like) or
(y) contact any tenant of the Property, except for confirmatory tenant interviews; provided, however, that Purchaser shall notify Seller of those tenants which Purchaser desires to interview, and Seller or Seller’s agent(s) shall promptly
schedule such confirmatory tenant interviews, and Seller or Seller’s agent(s) shall have the right to be present at the confirmatory tenant interview (Purchaser acknowledges that Purchaser shall have no right to directly notify any tenant of an
interview request, and that such interview requests shall be directed to Seller, who shall, or shall direct its agent(s) to, schedule such confirmatory tenant interviews). Purchaser shall have the right from time to time to contact Governmental
Authorities having jurisdiction over the Property with respect to existing zoning matters relating to the Property. 
 The foregoing
obligations shall survive the Closing or a termination of this Agreement. 
 4.2.1 Property Information and Confidentiality. All
Information (as hereinafter defined) provided to Purchaser shall be subject to the following terms and conditions: 

 (a) Any information provided or to be provided with respect to the Property is solely for
Purchaser’s convenience and was or will be obtained from a variety of sources. Except as expressly set forth in this Agreement, neither Seller nor any Seller Related Party has made any independent investigation or verification of such
information and makes no (and expressly disclaims all) representations and warranties as to the truth, accuracy or completeness of the Information, or any other studies, documents, reports or other information provided to Purchaser hereunder and
expressly disclaims any implied representations as to any matter disclosed or omitted. Neither Seller nor any Seller Related Party shall be liable for any mistakes, omissions, misrepresentations or any failure to investigate the Property nor shall
Seller or any Seller Related Party be bound in any manner by any verbal or written statements, representations, appraisals, environmental assessment reports, or other information pertaining to the Property or the operation thereof, except as
expressly set forth in this Agreement. 
 (b) Purchaser agrees that, prior to Closing, neither Purchaser nor Purchaser’s
Representatives shall, at any time or in any manner, either directly or indirectly, divulge, disclose or communicate to any person, entity or association the Information, or any other knowledge or information acquired by Purchaser or
Purchaser’s Representatives from Seller, any Seller Related Party or by Purchaser’s own inspections and investigations, other than matters that were in the public domain at the time of receipt by Purchaser or Purchaser’s
Representatives. Without the other party’s prior written consent, neither Seller nor Purchaser shall disclose, and Seller shall direct Seller Related Parties and Purchaser shall direct Purchaser’s Representatives not to disclose to any
person, entity or association any of the terms, conditions or other facts with respect to this Agreement, including, without limitation, the status hereof. Notwithstanding the foregoing, (x) Purchaser may disclose such of the Information and
its other reports, studies, documents and other matters generated by it and (y) either party may disclose the terms of this Agreement provided that any such disclosure described in clauses (x) and (y) of this paragraph is
(i) required by law or court order and discloses that portion (and only that portion) that it is legally compelled to disclose (provided prior written notice of such disclosure shall be provided to the other party and the disclosing party
agrees to use its best efforts to obtain assurance that confidential treatment will be accorded to such Information by the person or persons to whom it was disclosed), or (ii) deemed reasonably necessary or desirable by Purchaser and is
disclosed to Purchaser’s Representatives in connection with Purchaser’s Investigation and the transaction contemplated hereby or is disclosed to Seller Related Parties, provided that those to whom such Information or this Agreement is
disclosed are informed of the confidential nature thereof and agree(s) to keep the same confidential in accordance with the terms and conditions hereof, and the disclosing party agrees to be responsible for any breach of this Section by the parties
to whom it directly or indirectly discloses Information or this Agreement. Notwithstanding the foregoing, nothing contained herein shall impair Purchaser’s (or its permitted assignee’s) right to disclose information relating to this
Agreement or the Property (a) to the due diligence representatives and/or consultants retained by any securities dealers and/or broker dealers actively evaluating Purchaser or its permitted assignees, (b) in connection with any filings
(including any amendment or supplement to any S-11 filing) with governmental agencies (including the SEC) by any REIT (as defined in Section 11.7 herein) holding an interest (direct or indirect) in any permitted assignee of Purchaser, and
(c) to any broker/dealers in the REIT’s broker/dealer network and any of the REIT’s investors. 

 (c) Each party shall indemnify and hold harmless the other, non-breaching party and any related
non-breaching party thereof, from and against any and all claims, demands, causes of action, losses, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees and disbursements) suffered or incurred by the
non-breaching party or any related non-breaching party and arising out of or in connection with a breach by the breaching party or its representatives of the provisions of this Section 4.2.1. 
 (d) Purchaser and Purchaser’s Representatives shall use reasonable care to maintain in good condition all of the Information furnished or made
available to Purchaser and/or Purchaser’s Representatives in accordance with this Section 4.2. In the event this Agreement is terminated, Purchaser and Purchaser’s Representatives shall promptly deliver to Seller all originals and
copies of the Information in the possession of Purchaser and Purchaser’s Representatives. 
 (e) As used in this Agreement, the term
“Information” shall mean any of the following: (i) all information and documents in any way relating to the Property, the operation thereof or the sale thereof, including, without limitation, all leases and contracts furnished to, or
otherwise made available for review by, Purchaser or its directors, officers, employees, affiliates, partners, members, brokers, agents, broker/dealers of the REIT or other representatives, including, without limitation, attorneys, accountants,
contractors, consultants, engineers and financial advisors (collectively, “Purchaser’s Representatives”), by Seller or any Seller Related Party, and (ii) all analyses, compilations, data, studies, reports or other information or
documents prepared or obtained by Purchaser or Purchaser’s Representatives containing or based on, in whole or in part, the information or documents described in the preceding clause (i), the Investigations, or otherwise reflecting their review
or investigation of the Property. 
 (f) In addition to any other remedies available to Seller, Seller shall have the right to seek
equitable relief, including, without limitation, injunctive relief or specific performance, against Purchaser or Purchaser’s Representatives in order to enforce the provisions of this Section 4.2.1. 
 (g) Notwithstanding any terms or conditions in this Agreement to the contrary, no conditions of confidentiality within the meaning of IRC §6111(d)
or the Treasury Regulations promulgated under IRC Sec. 6011 are intended, and the parties hereto are expressly authorized to disclose every U.S. federal income tax aspect of any transaction covered by this Agreement with any and all persons, without
limitation of any kind. 
 (h) The provisions of this Section 4.2.1 shall survive the Closing or a termination of this Agreement.

 4.2.2 Investigations Completed. Purchaser acknowledges and agrees that it has completed its Investigations and has determined that
it intends to proceed with the acquisition of the Property in accordance with the terms of this Agreement without a reduction in, or an abatement of or credit against, the Purchase Price except as otherwise expressly provided in this Agreement.

 4.3 Tenant Estoppel Certificates. Seller shall use commercially reasonable efforts to
(a) prepare, or cause to be prepared, and deliver to Purchaser for review and approval, within three (3) Business Days following the date hereof, the estoppel certificates in substantially the form of Exhibit D attached hereto
(each, a “Tenant Estoppel Certificate”, and collectively, the “Tenant Estoppel Certificates”), and (b) remit, or cause to be remitted, the Tenant Estoppel Certificates to the tenants identified on Exhibit C attached
hereto and made a part hereof (collectively, the “Required Tenants”) for signature within two (2) Business Days following Purchaser’s written notice to Seller that Purchaser has approved the Tenant Estoppel Certificates (which
notice shall set forth any required corrections). If Purchaser fails to notify Seller of its approval of, or any changes to, the Tenant Estoppel Certificates it receives from Seller for approval within two (2) Business Days following
Purchaser’s receipt of the same, Seller may forward such Tenant Estoppel Certificates to the tenants without Purchaser’s prior approval. Subject to the further provisions of this Section 4.3, receipt of Tenant Estoppel Certificates
substantially in the form prescribed above or as provided below from the Required Tenants, (x) not disclosing the existence of any material uncured default under the leases referred to therein and (y) confirming the information contained
in the Tenant Estoppel Certificate delivered to Purchaser for approval, shall be a condition precedent to Purchaser’s obligation to purchase the Property hereunder. Seller shall promptly, following receipt of the same, deliver copies of the
completed Tenant Estoppel Certificates to Purchaser. Seller shall use commercially reasonable efforts (and, as used in this Agreement, commercially reasonable efforts shall not be deemed to include any obligation to institute legal proceedings,
deliver notices of default or to expend any monies) to obtain executed Tenant Estoppel Certificates. Notwithstanding the foregoing, any Tenant Estoppel Certificate that is in the form, if any, prescribed in the applicable lease or other operative
document or that is in any form which does not materially vary from the representations made in the form of Tenant Estoppel Certificate in Exhibit D (as modified to make the statement contained therein factually correct) shall be deemed to be
a satisfactory Tenant Estoppel Certificate for all purposes under this Agreement, provided that such Tenant Estoppel Certificate does not disclose any material uncured default under the leases referred to therein and, to the extent required by the
terms of such tenant’s lease, confirms the information contained in the Tenant Estoppel Certificate delivered to Purchaser for approval. 
 Seller agrees that upon its receipt of a form subordination, non-disturbance and attornment agreement (an “SNDA”) from Purchaser or its lender, Seller shall promptly send such SNDAs to the tenants, and shall use commercially
reasonable efforts (and, as used in this Agreement, commercially reasonable efforts shall not be deemed to include any obligation to institute legal proceedings, deliver notices of default or to expend any monies) to obtain the SNDAs, signed by the
tenants, prior to the Closing Date; provided, however, that Purchaser acknowledges and agrees that receipt of any or all of the SNDAs shall not be a condition precedent to Purchaser’s obligation to purchase the Property. 
 4.4 Conditions Precedent to Obligations of Purchaser. The obligation of Purchaser to consummate the transactions contemplated by this Agreement
shall be subject to (a) the performance and observance, in all material respects, by Seller of all covenants, warranties and agreements of this Agreement to be performed or observed by Seller prior to or on the Closing Date, (b) all of the
representations and warranties of Seller contained in this Agreement being true and correct in all material respects, (c) the fulfillment on or before the Closing Date of all other conditions precedent to Closing benefiting Purchaser
specifically enumerated in this 

 
Agreement, any or all of which may be waived by Purchaser in its sole discretion, (d) Purchaser having received no less than five (5) Business Days
prior to the Closing Date, fully executed Tenant Estoppel Certificates from all Required Tenants complying with the requirements set forth in Section 4.3 herein, (e) no unfavorable judgment, decree, injunction, order or ruling shall have
been entered preventing the performance of this Agreement or any of the transactions contemplated by this Agreement by Seller, and (f) no Violations (as hereinafter defined), the cost of which to remediate would exceed $100,000 in the
aggregate, shall have been issued in writing against the Property after the date hereof and were not discoverable by Purchaser or Purchaser’s Representatives prior to the date hereof; provided that Seller shall have the right to adjourn the
Scheduled Closing Date for up to thirty (30) days to satisfy the conditions set forth in this Section 4.4; provided, further, that if Seller exercises the right to adjourn the Scheduled Closing Date pursuant to this Section and/or
Section 4.1.1(b), Seller may not adjourn the Scheduled Closing Date for more than thirty (30) days in the aggregate after taking into consideration an adjournment under Section 4.1.1(b). 
 4.5 Conditions Precedent to Obligations of Seller. The obligation of Seller to consummate the transactions contemplated by this Agreement shall be
subject to (a) the performance and observance, in all material respects, by Purchaser of all covenants and agreements of this Agreement to be performed or observed by Purchaser prior to or on the Closing Date (provided that Purchaser shall have
delivered the full amount of the Closing Payment) and the fulfillment on or before the Closing Date of all other conditions precedent to Closing benefiting Seller specifically set forth in this Agreement, any or all of which may be waived by Seller
in its sole discretion, and (b) all of the representations and warranties of Purchaser contained in this Agreement being true and correct in all material respects. 
 5. Closing. The closing (the “Closing”) of the sale and purchase contemplated herein shall occur at 2:00 p.m. Eastern time on September 15, 2008 (the “Scheduled Closing Date”), TIME
BEING OF THE ESSENCE with respect to Purchaser’s obligation to close on such date, at the offices of Escrowee through an escrow and pursuant to escrow instructions consistent with the terms of this Agreement and otherwise mutually
satisfactory to Seller and Purchaser (the date on which the Closing shall occur being herein referred to as the “Closing Date”). Notwithstanding the foregoing or anything to the contrary contained herein, Purchaser shall have the right,
exercisable by delivery of a written notice to Seller (the “Accelerated Closing Date Notice”), to accelerate the Closing Date to a Business Day selected by Purchaser; provided that such date shall not be any earlier than the sixth
(6th) Business Day following delivery of the Accelerated Closing Date Notice. Delivery of the Accelerated Closing Date Notice shall constitute approval by Purchaser of all matters to which Purchaser has a right of approval and a waiver of all
conditions precedent to Purchaser’s obligation to consummate the transaction contemplated by this Agreement (other than the obligation of Seller to make the deliveries provided for in Section 5.1; provided that if Seller is unable to
deliver the Update (as hereinafter defined), then Seller shall have the right to adjourn the Closing for a period not to exceed thirty (30) days in the aggregate). If Purchaser delivers the Accelerated Closing Date Notice, Seller shall, subject
to the foregoing, be deemed to have waived all rights to adjourn the Closing Date hereunder. Without limiting the foregoing, and for the purpose of clarification only, delivery by Purchaser of the Accelerated Closing Date Notice shall constitute
Purchaser’s acceptance of all title exceptions encumbering the Property as of the Closing Date. The Closing 

 
shall constitute approval by each party of all matters to which such party has a right of approval and a waiver of all conditions precedent. 
 5.1 Seller Deliveries. No less than one (1) Business Day prior to the Closing, Seller shall deliver or cause to be delivered to Purchaser or
to the Escrowee, as the case may be, the following items executed and acknowledged by Seller, as appropriate: 
 (a) a deed (the
“Deed”) in the form attached hereto and made a part hereof as Exhibit F. 
 (b) an assignment and assumption of the Leases
(the “Assignment and Assumption of Leases”), in the form attached hereto and made a part hereof as Exhibit G. 
 (c) a bill
of sale (the “Bill of Sale”) executed by Seller, in the form attached hereto and made a part hereof as Exhibit H.  
 (d) a
certification of non-foreign status (the “FIRPTA”) executed by Seller, in the form attached hereto and made a part hereof as Exhibit I, and any required state certificate that is sufficient to exempt Seller from any state
withholding requirement with respect to the transactions contemplated hereby. 
 (e) an assignment and assumption of the Contracts (the
“Assignment and Assumption of Contracts”), in the form attached hereto and made a part hereof as Exhibit J. 
 (f) all
existing surveys, blueprints, drawings, plans and specifications for or with respect to the Property or any part thereof, to the extent the same are in Seller’s possession. 
 (g) all keys to the Improvements, to the extent the same are in Seller’s possession. 
 (h) all Leases in effect on the Closing Date, to the extent the same are in Seller’s possession. 
 (i) all Contracts that shall remain in effect after the Closing, to the extent the same are in Seller’s possession (all items in clauses
(f) through (i) may be either delivered at Closing or left at the management office at the Property, to the extent not previously delivered to Purchaser). 
 (j) a Seller’s Residency Certification/Exemption form. 
 (k) an Affidavit of Consideration for Use.

 (l) such further instruments as may be required by the Title Company to record the Deed. 
 (m) notices to each of the tenants under the Leases (each, a “Tenant Notice”, and collectively, the “Tenant Notices”) in the form
attached hereto and made a part 

 
hereof as Exhibit K, advising such tenants of the sale of the Property to Purchaser and directing them to make all payments to Purchaser or its
designee, which Tenant Notices Purchaser shall, at Purchaser’s sole cost and expense, either mail by certified mail return receipt requested or hand-deliver to each applicable tenant. 
 (n) evidence reasonably satisfactory to the Title Company respecting the due organization of Seller and the due authorization and execution by Seller of
this Agreement and the documents required to be delivered hereunder. 
 (o) a Certificate of Construction Records Clearance issued by the
appropriate office in Bernards Township, New Jersey. 
 (p) an owner’s affidavit and gap indemnity in the form of Exhibit L
attached hereto and made a part hereof (the “Title Affidavit”). 
 (q) a certificate (the “Update”) of Seller dated as
of the Closing Date certifying that the representations and warranties of Seller set forth in Section 7.1.1 of this Agreement, other than the representations and warranties set forth in Section 7.1.1 of this Agreement which are made as of
the date of this Agreement (the representations and warranties of Seller set forth in Section 7.1.1 of this Agreement, other than the representations and warranties set forth in Section 7.1.1 of this Agreement which are made as of the date
of this Agreement, being hereafter referenced to as “Closing Date Representations”), remain true and correct in all material respects as of the Closing Date, it being agreed that if any Closing Date Representation shall no longer be true
and correct in any material respect due to a change in the facts or circumstances which do not otherwise constitute a default of Seller pursuant to the express terms of this Agreement and Seller is unable to deliver the Update, the failure of Seller
to deliver the Update shall, subject to the terms of Section 7.2.3(e), constitute a failure of a condition to Closing and shall not constitute a default by Seller under this Agreement, and Purchaser’s sole remedy in connection therewith
shall be to terminate this Agreement by written notice to Seller, in which event the Deposit shall be returned to Purchaser and no party hereto shall have any further obligations in connection herewith except under those provisions that expressly
survive the Closing or a termination of this Agreement; provided, however, that if Seller has notified Purchaser as and in the manner provided by Section 3.1 of this Agreement, Escrowee shall release the Deposit to Purchaser, less the
Pre-Closing Breach Amount, which Pre-Closing Breach Amount shall be held by Escrowee until the same is to be released as and in the manner provided by Section 3.1 of this Agreement. 
 (r) all originals in Seller’s possession or control (and where originals are not available, copies) of the Property Documents. 
 5.2 Purchaser Deliveries. Except as otherwise expressly provided below, no less than one (1) Business Day prior to the Closing, Purchaser
shall deliver or cause to be delivered to Seller or to the Escrowee, as the case may be, the following items executed and acknowledged by Purchaser, as appropriate: 

 (a) the remaining funds for the Purchase Price, sent by wire transfer of immediately available federal
funds to the account designated by Seller and available for disbursement no later than 2:00 p.m. Eastern time on the Closing Date. 
 (b)
the Assignment and Assumption of Leases. 
 (c) the Assignment and Assumption of Contracts. 
 (d) an Affidavit of Consideration for Use. 
 (e) such further instruments as may be necessary to record the Deed. 
 (f) the Tenant Notices. 
 (g) evidence reasonably satisfactory to the Title Company respecting the due organization of Purchaser and the due authorization and execution by
Purchaser of this Agreement and the documents required to be delivered hereunder. 
 5.3 Closing Costs. Seller shall pay (x) all
state and county transfer taxes (other than the “Mansion Tax”), including transfer taxes of the State of New Jersey and of the County of Somerset, payable in connection with the transaction contemplated herein, (y) fifty percent
(50%) of all recording charges payable in connection with the recording of the Deed and fifty percent (50%) of the costs of Escrowee. Purchaser shall pay (a) the title insurance premiums for the Owner’s Policy, (b) the cost
of any title endorsements and affirmative insurance, including a lender’s title insurance policy, required by Purchaser, (c) the costs of the Survey (or an update thereto), (d) fifty percent (50%) of all recording charges payable
in connection with the recording of the Deed, (e) the “Mansion Tax”, if applicable, (f) fifty percent (50%) of the costs of Escrowee and (g) all fees, costs or expenses in connection with Purchaser’s due diligence
reviews hereunder. Any other closing costs shall be allocated in accordance with local custom. Except as expressly provided in the indemnities set forth in this Agreement, Seller and Purchaser shall pay their respective legal, consulting and other
professional fees and expenses incurred in connection with this Agreement and the transaction contemplated hereby and their respective shares of prorations as hereinafter provided. The provisions of this Section 5.3 shall survive the Closing or
a termination of this Agreement. 
 5.4 Prorations. 
 5.4.1 The following shall be prorated between Seller and Purchaser as of 12:01 a.m. on the Closing Date (on the basis of the actual number of days elapsed over the applicable period regardless when payable):

 (a) All real estate taxes, water charges, sewer rents, vault charges and assessments on the Property on the basis of the fiscal year for
which assessed. In no event shall Seller be charged with or be responsible for any increase in the taxes on the Property resulting from the sale of the Property or from any improvements made or leases entered into on or after the Closing Date. If
any assessments on the Property are payable in installments, then the installment for the current period shall be prorated (with Purchaser assuming the obligation to pay any installments due after the Closing Date). 

 (b) Subject to this Section 5.4.1(b), all fixed rent and regularly scheduled items of additional
rent under the Leases, and other tenant charges if, as and when received. Seller shall deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing Date and all refundable cash security deposits (to the extent
the foregoing were made by tenants under the Leases and are not applied or forfeited prior to the Closing Date) to Purchaser on the Closing Date. As to any tenant security deposits held in the form of letters of credit or other financial instruments
(the “Non-Cash Security Deposits”), Seller shall (i) deliver to Purchaser at Closing such original Non-Cash Security Deposits, and (ii) execute and deliver at Closing such other instruments as the issuer of such Non-Cash Security
Deposits shall reasonably require in order to cause the named beneficiary under such Non-Cash Security Deposits to be changed to Purchaser; provided that such instruments do not impose any liability on Seller. Purchaser will not receive a credit
against the Purchase Price for the Non-Cash Security Deposits. Rents which are delinquent as of the Closing Date shall not be prorated on the Closing Date. Purchaser shall include such delinquencies in its normal billing and shall diligently pursue
the collection thereof in good faith after the Closing Date (but Purchaser shall not be required to litigate or declare a default in any Lease). To the extent Purchaser receives rents on or after the Closing Date, such payments shall be applied
first toward the rents for the month in which the Closing occurs, second to the rents that shall then be due and payable to Purchaser, and third to any delinquent rents owed to Seller, with Seller’s share thereof being held by Purchaser in
trust for Seller and promptly delivered to Seller by Purchaser. Purchaser may not waive any delinquent rents nor modify a Lease so as to reduce or otherwise affect amounts owed thereunder for any period in which Seller is entitled to receive a share
of charges or amounts without first obtaining Seller’s written consent, which consent may be given or withheld in Seller’s sole and absolute discretion. Seller hereby reserves the right to pursue any remedy against any tenant owing
delinquent rents and any other amounts to Seller (but shall not be entitled to terminate any lease or any tenant’s right to possession), which right shall include the right to continue or commence legal actions or proceedings against any
tenant; provided, however, that Seller shall not be entitled to exercise such right until the expiration of the six (6) month period following the Closing. Delivery of the Assignment and Assumption of Leases shall not constitute a waiver by
Seller of such right, and such right shall survive the Closing. Purchaser shall bill and attempt to collect such delinquent rent in the ordinary course of business, but shall not be obligated to engage a collection agency or take legal action to
collect any delinquencies. With respect to delinquent rents and any other amounts or other rights of any kind respecting tenants who are no longer tenants of the Property as of the Closing Date, Seller shall retain all rights relating thereto. Any
rents received by Seller applicable to the period after the Closing shall be promptly remitted to Purchaser. 
 (c) If any tenant of the
Property is obligated to pay percentage rent based upon the calendar year or lease year in which the Closing Date occurs (the “Percentage Rent Year”), Purchaser shall, within thirty (30) days after receipt of such payment with respect
to the Percentage Rent Year, remit to Seller that portion which is equal to the number of days which elapsed between the commencement date of the Percentage Rent Year for each such tenant and the Closing Date, divided by the total number of days in
such Percentage Rent Year. If Seller has received payments of percentage rent based on any Percentage Rent Year in which the date of Closing occurs, in excess of Seller’s share as calculated as set forth above in this Section 5.4.1(c), it
shall promptly pay such excess to Purchaser. In the event that the Leases require the reconciliation of additional rent “pass-throughs” to the landlord for common area maintenance 

 
charges, real estate taxes or other operating expenses (collectively, the “Expenses”), Purchaser shall perform all of the obligations of the
landlord under the Leases with respect to such reconciliations for the year of Closing as and when required by the terms of the Leases and provide Seller with the results of such reconciliations no later March 31st of the calendar year
succeeding the Closing Date. If such results reflect the underpayment of Expenses by tenants of the Property for the year of Closing, Purchaser shall bill the appropriate amounts to such tenants in accordance with the terms of their leases and remit
to Seller its prorata share of the amount collected from the tenants within thirty (30) days of Purchaser’s collection of the same. If such results reflect the overpayment of Expenses by tenants of the Property for the year of Closing,
Purchaser shall deliver to Seller an invoice from Purchaser together with evidence reasonably satisfactory to Seller indicating that such sums are due to such tenants. Seller shall pay Purchaser Seller’s prorata share of the amounts due to such
tenants within thirty (30) days of Purchaser’s demand, provided that Seller shall have no obligation to reimburse Purchaser for any sums not invoiced on or before July 1st of the calendar year succeeding the Closing Date.
Notwithstanding the foregoing, if, as of the Closing, Seller has received additional rent payments in excess of the amount that the tenants would be required to pay, based on the actual Expenses as of the Closing, Purchaser shall receive a credit in
the amount of such excess. The provisions of this Section 5.4.2(c) shall survive the Closing. 
 (d) All operating expenses customarily
apportioned between sellers and purchasers of real estate properties similar to the Property and located in the same geographic area as the Property. 
 (e) Charges and payments under Contracts or permitted renewals or replacements thereof assigned to Purchaser pursuant to the Assignment and Assumption of Contracts. 
 (f) Any prepaid items, including, without limitation, fees for licenses which are transferred to Purchaser at the Closing and annual permit and
inspection fees. 
 (g) Utilities, including, without limitation, telephone, steam, electricity and gas, on the basis of the most recently
issued bills therefor, subject to adjustment after the Closing when the next bills are available, or if current meter readings are available, on the basis of such readings. 
 (h) Deposits with telephone and other utility companies, and any other persons or entities who supply goods or services in connection with the Property
if the same are assignable and are assigned to Purchaser at the Closing, which shall be credited in their entirety to Seller. 
 (i)
Personal property taxes, if any, on the basis of the fiscal year for which assessed. 
 (j) Permitted administrative charges, if any, on
those tenants’ security deposits transferred by Seller pursuant to the Assignment and Assumption of Leases. 
 (k) Taxes payable by
Seller relating to operations of the Property, including, without limitation, business and occupancy taxes and sales taxes, if any. 

 (l) Such other items as are customarily apportioned between sellers and purchasers of real properties of
a type similar to the Property and located in the same geographic area as the Property subject to Section 7.2.3(a) hereof. 
 5.4.2

 (a) Intentionally deleted. 
 (b) If any of the items described in Section 5.4.1 hereof cannot be apportioned at the
Closing because of the unavailability of information as to the amounts which are to be apportioned or otherwise, or are incorrectly apportioned at Closing or subsequent thereto, such items shall be apportioned or reapportioned, as the case may be,
as soon as practicable after the Closing Date or the date such error is discovered, as applicable; provided that (i) with the exception of any item required to be apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party
shall have the right to request apportionment or reapportionment of any such item at any time following the one hundred eightieth (180th) day
after the Closing Date and (ii) with respect to the items required to be apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party shall have the right to request apportionment or reapportionment of any such item at any time
following the one (1) year anniversary of the Closing Date. If the Closing shall occur before a real estate or personal property tax rate or assessment is fixed for the tax year in which the Closing occurs, the apportionment of taxes at the
Closing shall be upon the basis of the tax rate or assessment for the preceding fiscal year applied to the latest assessed valuation. Promptly after the new tax rate or assessment is fixed, the apportionment of taxes or assessments shall be
recomputed and any discrepancy resulting from such recomputation and any errors or omissions in computing apportionments at Closing shall be promptly corrected and the proper party reimbursed, which obligations shall survive the Closing. 

5.4.3 Items to be prorated at the Closing shall include a credit to Seller for costs and expenses incurred by Seller in connection with any new
Leases or modifications to any existing Leases entered into after the date hereof in accordance with the terms and conditions set forth in Section 7.2.3(a) of this Agreement, but only to the extent such costs and expenses are approved or deemed
approved by Purchaser pursuant to Section 7.2.3(a) or disclosed to Purchaser in writing or in the proposed lease at least three (3) Business Days prior to the date hereof. Seller shall be responsible for all brokerage and leasing
commissions and tenant improvement costs for the initial term of all Leases entered into prior to the date of this Agreement and for any extension, renewal or expansion of any such Lease exercised prior to the date of this Agreement, provided in all
such instances, the term of such Lease, extension, renewal or expansion and the regularly scheduled payment of rent commences prior to the date of this Agreement (collectively, “Seller Leasing Costs”). Purchaser shall be responsible for
and expressly assumes the obligation to pay all brokerage and leasing commissions, tenant improvement costs and other costs and expenses including attorney’s fees other than the Seller Leasing Costs for any new leases entered into from and
after the date of this Agreement and any extension, renewal or expansion of any existing Lease exercised or entered into from and after the date of this Agreement including, without limitation amounts owed under the Brokerage Agreements, provided in
all such instances, the term of such Lease, extension, or expansion or the regularly scheduled payment of rent commences from and after the date of this Agreement, provided such new leases or extensions or expansions are approved or deemed approved
by 

 
Purchaser pursuant to Section 7.2.3(a) of this Agreement and provided such brokerage and leasing commissions, tenant improvement costs and other costs
are disclosed to Purchaser in writing, in the applicable lease or other agreement delivered to Purchaser at the time Purchaser approves (or is deemed to have approved) such new leases, or any such Lease extensions, renewals or expansions
(collectively, “Purchaser Leasing Costs”). If at the Closing Seller has paid any Purchaser Leasing Costs, the prorations at the Closing shall include an appropriate credit to Seller. If at the Closing there remain unpaid Seller Leasing
Costs, Purchaser shall expressly assume the responsibility to pay such unpaid Seller Leasing Costs, and the prorations at the Closing shall include an appropriate credit to Purchaser. 
 5.4.4 As provided in Section 11.1.2, Seller shall be responsible for paying all fees, costs or commissions owing to the Broker (as defined in
Section 11.1.2) with regard to the transactions contemplated by this Agreement. 
 5.4.5 The provisions of this Section 5.4 shall
survive the Closing. 
 6. Condemnation or Destruction of Property. In the event that, after the date hereof but prior to the Closing
Date, either any portion of the Property is taken pursuant to eminent domain proceedings or condemnation or any of the improvements on the Property are damaged or destroyed by fire or other casualty, Seller shall have no obligation to restore,
repair or replace any portion of the Property or any such damage or destruction. Seller shall, at the Closing, assign to Purchaser all of Seller’s interest in all awards or other proceeds for such taking by eminent domain or condemnation or the
proceeds of any insurance collected by Seller for such damage or destruction (unless Seller shall have repaired such damage or destruction prior to the Closing and except to the extent any such awards, proceeds or insurance are attributable to lost
rents or items applicable to any period prior to the Closing), less the amount of all costs incurred by Seller in connection with the repair of such damage or destruction or collection costs of Seller respecting any awards or other proceeds for such
taking by eminent domain or condemnation or any uncollected insurance proceeds which Seller may be entitled to receive from such damage or destruction, as applicable. In connection with any assignment of awards, proceeds or insurance hereunder,
Seller shall credit Purchaser with an amount equal to the applicable deductible amount under Seller’s insurance (but not more than the amount by which the cost, as of the Closing Date, to repair the damage is greater than the amount of
insurance proceeds assigned to Purchaser); provided, however, if the damage (as determined by an independent third party contractor or engineer selected by Seller and reasonably approved by Purchaser) or any condemnation is Material (as defined
below), Purchaser shall have the right to terminate this Agreement by notice to Seller given within ten (10) days after notification to Purchaser of the casualty or condemnation and the determination of the amount of any damage. In any instance
where this Agreement is terminated pursuant to this Section 6, in which event the Deposit shall be returned to Purchaser and no party hereto shall have any further obligations in connection herewith except under those provisions that expressly
survive the Closing or a termination of this Agreement; provided, however, that if Seller has notified Purchaser as and in the manner provided by Section 3.1 of this Agreement, Escrowee shall release the Deposit to Purchaser, less the
Pre-Closing Breach Amount, which Pre-Closing Breach Amount shall be held by Escrowee until the same is to be released as and in the manner provided by Section 3.1 of this Agreement. The parties hereby waive the provisions of any statute which
provides for a different outcome or treatment in the event of a casualty or a condemnation or eminent domain proceeding. For 

 
purposes hereof, any damage to all or portions of the Property and any condemnation or eminent domain proceeding with respect to all or portions of the
Property shall be considered “Material” if: (i) as to any damage, the cost to repair such damage exceeds five percent (5%) of the Purchase Price and Seller, at its sole option, does not elect to repair or does not repair the same
prior to the Closing, and as to any condemnation or eminent domain proceeding, the value of the Property affected exceeds five percent (5%) of the Purchase Price; (ii) it causes access to or parking on the Property to be materially
impaired; (iii) it results in the Property violating any laws or failing to comply with zoning or any covenants, conditions or restrictions affecting the Property and such violations have not been waived by the applicable Governmental Agency;
(iv) it entitles any Required Tenant to terminate its lease; or (v) as to any damage, it is not fully insured or for which Purchaser will not receive, at Seller’s election, a credit in the amount of the uninsured portion of such
damage at Closing. 
 7. Representations, Warranties and Covenants. 
 7.1 Representations, Warranties and Covenants of Seller. 
 7.1.1 Representations and Warranties of Seller. Subject to the provisions of this Section 7.1.1, Seller hereby represents to Purchaser that: 
 (a) Leases. Seller has no knowledge of any leases, licenses or other occupancy agreements to which Seller is a party or is bound affecting any
portion of the Property which will be in force on the Closing Date other than the Leases. As used herein, “Leases” shall be deemed to mean (i) the Leases described on Exhibit O attached hereto and made a part hereof (the
“Lease Exhibit”) and (ii) the leases entered into after the date of this Agreement in accordance with this Agreement. To the best of Seller’s knowledge, as of the date of this Agreement (x) the Leases are in full force and
effect and have not been amended except as set forth in the Lease Exhibit, and (y) the Lease Exhibit is true and correct in all material respects. 
 (b) Litigation. To the best of Seller’s knowledge, as of the date of this Agreement, there is no pending or threatened litigation, other than tort claims covered by insurance, against the Property or
against Seller with respect to the Property as of the date of this Agreement. 
 (c) No Insolvency. Seller is not a debtor in any
state or federal insolvency, bankruptcy, receivership proceeding. 
 (d) Non-Foreign Person. Seller is not a “foreign
person” as defined in Section 1445 of the Internal Revenue Code, as amended (the “Code”). 
 (e) Contracts.
Seller has not entered into any service or equipment leasing contracts relating to the Property which will be in force after the Closing, except for the Contracts. As used in this Agreement, the “Contracts” shall be deemed to mean
(i) the Contracts described on Exhibit Q attached hereto and made a part hereof, (ii) contracts which are cancelable on thirty (30) days notice or less without premium or penalty, and (iii) contracts entered into by Seller
after the date of this Agreement which Seller is permitted to enter into in accordance with this Agreement. 

 (f) Lease Brokerage Agreements; Leasing Commission Agreements. Seller has not entered into any
lease brokerage agreements or lease commission agreements other than as described on Exhibit R attached hereto and made a part hereof or in the Leases that shall be binding upon Purchaser following Closing. 
 (g) Due Authority. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by
Seller are, or on the Closing Date will be, duly authorized, executed and delivered by and are binding upon Seller. Seller is a limited liability company, duly organized and validly existing and in good standing under the laws of the State of
Delaware, is duly authorized and qualified to do all things required of it under this Agreement, and no other action is requisite to the valid and binding execution, delivery and performance of this Agreement by Seller. This Agreement and
Seller’s performance of the obligations in this Agreement do not and will not contravene any provision of any present judgment, order, decree, writ or injunction, or any provision of any law or regulation currently applicable to Seller. Neither
this Agreement nor anything provided to be done under this Agreement by Seller shall constitute or result in a default, breach or violation of any covenant, agreement, instrument, document or understanding to which Seller is bound. 
 (h) Violations. To the best of Seller’s knowledge, as of the date of this Agreement, Seller has not received written notice from any
Governmental Authority of any violation (including violations relating to environmental matters) at the Property of laws, ordinances, rules, or administrative or judicial orders affecting the Property (“Violations”). 
 (i) Condemnation. As of the date of this Agreement, there is no pending or, to the knowledge of Seller, threatened condemnation or similar
proceeding or special assessment (inclusive of assessments for street widening, repair, or improvement), or change in zoning affecting the Property. 
 Notwithstanding and without limiting the foregoing, (i) if any of the representations or warranties of Seller that survive Closing contained in this Agreement or in any document or instrument delivered in
connection herewith are materially false or inaccurate, or Seller is in material breach or default of any of its obligations under this Agreement that survive Closing, and Purchaser nonetheless closes the transactions hereunder and purchases the
Property, then Seller shall have no liability or obligation respecting such false or inaccurate representations or warranties or other breach or default (and any cause of action resulting therefrom shall terminate upon the Closing) in the event that
either (x) on or prior to Closing, Purchaser shall have had actual knowledge of the false or inaccurate representations or warranties or other breach or default, or (y) the accurate state of facts pertinent to such false or inaccurate
representations or warranties or other breach or default was contained in any of the Information furnished or made available to or otherwise obtained by Purchaser, and (ii) to the extent the copies of the Leases, the Contracts or any other
Information furnished or made available to or otherwise obtained by Purchaser prior to the date hereof contain provisions or information that are inconsistent with the foregoing representations and warranties, Seller shall have no liability or
obligation respecting such inconsistent representations or warranties (and Purchaser shall have no cause of action or right to terminate this Agreement with respect thereto), and such representations and warranties shall be deemed modified to the
extent necessary to eliminate such inconsistency and to conform such representations and warranties to such Leases, Contracts and other Information. 

 References to the “knowledge”, “best knowledge” and/or “actual knowledge”
of Seller or words of similar import shall refer only to the current actual (as opposed to implied or constructive) knowledge of Cavarly E. Garrett and shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller or any
parent, subsidiary or affiliate of Seller or to any other officer, agent, manager, representative or employee of Seller or to impose upon Cavarly E. Garrett any duty to investigate the matter to which such actual knowledge, or the absence thereof,
pertains. Notwithstanding anything to the contrary contained in this Agreement, Cavarly E. Garrett shall have no personal liability hereunder. The provisions of this Section 7.1.1 shall survive the Closing for a period of nine (9) months.

 7.1.2 GENERAL DISCLAIMER. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, AND THE DOCUMENTS EXECUTED IN CONNECTION WITH THE
CLOSING (THE “CLOSING DOCUMENTS”), THE SALE OF THE PROPERTY HEREUNDER IS AND WILL BE MADE ON AN “AS IS”, “WHERE IS,” AND “WITH ALL FAULTS” BASIS, WITHOUT REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE,
EXPRESS, IMPLIED OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY CONCERNING TITLE TO THE PROPERTY, THE PHYSICAL CONDITION OF THE PROPERTY (INCLUDING THE CONDITION OF THE SOIL OR THE IMPROVEMENTS), THE ENVIRONMENTAL CONDITION OF THE PROPERTY
(INCLUDING THE PRESENCE OR ABSENCE OF HAZARDOUS SUBSTANCES ON OR AFFECTING THE PROPERTY), THE COMPLIANCE OF THE PROPERTY WITH APPLICABLE LAWS AND REGULATIONS (INCLUDING ZONING AND BUILDING CODES OR THE STATUS OF DEVELOPMENT OR USE RIGHTS RESPECTING
THE PROPERTY), THE FINANCIAL CONDITION OF THE PROPERTY OR ANY OTHER REPRESENTATION OR WARRANTY RESPECTING ANY INCOME, EXPENSES, CHARGES, LIENS OR ENCUMBRANCES, RIGHTS OR CLAIMS ON, AFFECTING OR PERTAINING TO THE PROPERTY OR ANY PART THEREOF.
PURCHASER ACKNOWLEDGES THAT, PRIOR TO THE DATE HEREOF, PURCHASER HAS EXAMINED, REVIEWED AND INSPECTED ALL MATTERS WHICH IN PURCHASER’S JUDGMENT BEAR UPON THE PROPERTY AND ITS VALUE AND SUITABILITY FOR PURCHASER’S PURPOSES. PURCHASER IS A
SOPHISTICATED PURCHASER WHO IS FAMILIAR WITH THE OWNERSHIP AND OPERATION OF REAL ESTATE PROJECTS SIMILAR TO THE PROPERTY AND THAT PURCHASER HAS OR WILL HAVE ADEQUATE OPPORTUNITY TO COMPLETE ALL PHYSICAL AND FINANCIAL EXAMINATIONS (INCLUDING ALL OF
THE EXAMINATIONS, REVIEWS AND INVESTIGATIONS REFERRED TO IN SECTION 4) RELATING TO THE ACQUISITION OF THE PROPERTY HEREUNDER IT DEEMS NECESSARY, AND WILL ACQUIRE THE SAME SOLELY ON THE BASIS OF AND IN RELIANCE UPON SUCH EXAMINATIONS AND THE TITLE
INSURANCE PROTECTION AFFORDED BY THE OWNER’S POLICY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER (OTHER THAN AS EXPRESSLY PROVIDED HEREIN OR IN THE CLOSING DOCUMENTS (INCLUDING SELLER’S REPRESENTATIONS AND WARRANTIES)).
EXCEPT AS TO MATTERS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS (INCLUDING SELLER’S REPRESENTATIONS AND WARRANTIES): (A) PURCHASER WILL ACQUIRE THE PROPERTY SOLELY ON THE BASIS OF ITS OWN PHYSICAL AND FINANCIAL
EXAMINATIONS, REVIEWS AND INSPECTIONS AND THE TITLE INSURANCE 

 
PROTECTION AFFORDED BY THE OWNER’S POLICY, AND (B) WITHOUT LIMITING THE FOREGOING, PURCHASER WAIVES ANY RIGHT IT OTHERWISE MAY HAVE AT LAW OR IN
EQUITY TO SEEK DAMAGES FROM SELLER IN CONNECTION WITH THE ENVIRONMENTAL CONDITION OF THE PROPERTY. THE FOREGOING WAIVER SHALL NOT BE APPLICABLE TO PURCHASER’S RIGHT TO IMPLEAD OR OTHERWISE SEEK JOINDER OF SELLER SOLELY WITH RESPECT TO ANY
CLAIMS BROUGHT AGAINST PURCHASER BY A THIRD PARTY UNAFFILIATED WITH PURCHASER RELATING TO HAZARDOUS MATERIALS DISPOSED OF OR RELEASED IN, ON OR UNDER THE PROPERTY DURING SELLER’S PERIOD OF OWNERSHIP OF THE PROPERTY AND FOR WHICH SELLER SHALL BE
LIABLE UNDER ANY STATUTE CONCERNING LIABILITY FOR CONTAMINATION BY HAZARDOUS MATERIALS. FURTHERMORE, THIS WAIVER SHALL NOT BE APPLICABLE TO (X) ANY CLAIMS ARISING OUT OF THE EXPRESS COVENANTS, REPRESENTATIONS, OR WARRANTIES SET FORTH IN THIS
AGREEMENT, OR (Y) SELLER’S FRAUD. THE PROVISIONS OF THIS SECTION 7.1.2 SHALL SURVIVE THE CLOSING. 
 7.2 Interim Covenants of
Seller. Until the Closing Date or the sooner termination of this Agreement in accordance with the terms and conditions of this Agreement: 
 7.2.1 Seller shall maintain the Property in substantially the same manner as prior hereto pursuant to Seller’s normal course of business (such maintenance obligations not including capital expenditures or expenditures not incurred in
such normal course of business), subject to reasonable wear and tear and further subject to destruction by casualty or other events beyond the control of Seller. 
 7.2.2 Seller shall not modify, extend, renew or cancel (except as a result of a default by the other party thereunder) or enter into any additional service contracts or other similar agreements (“Post Due
Diligence Contracts”) without the prior consent of Purchaser, which consent shall not be unreasonably withheld or delayed; provided, however, Purchaser’s consent shall not be required if such contract is cancelable upon not more than
thirty (30) days notice without payment of premium or penalty by Purchaser. Purchaser’s failure to disapprove any request for consent by Seller under this Section 7.2.2 within five (5) days following Seller’s request
therefor shall be deemed to constitute Purchaser’s consent thereto. Notwithstanding the foregoing, Seller shall terminate at Closing, and Purchaser shall not assume, such Post Due Diligence Contracts and any property management or leasing
agreement affecting the Property. 
 7.2.3 
 (a) Seller shall not during the term of this Agreement enter into any new leases or, unless expressly required by the term of existing Leases, modifications of existing Leases, without the prior written consent of
Purchaser, which consent may be granted or withheld in Purchaser’s sole and absolute discretion. Notwithstanding the foregoing or anything to the contrary set forth in this Agreement, Purchaser shall bear all costs and expenses related to any
new leases or modifications of existing Leases or service contracts entered into after the date hereof in accordance with the provisions of this Section 7.2.3 (including tenant improvement costs and leasing commissions and other costs and
expenses including attorney’s fees, but excluding free rent allocable to any period prior to the Closing Date) but only to the extent 

 
expressly disclosed to Purchaser in writing or in the applicable lease, extension or amendment prior to Purchaser’s approval and, without limiting the
foregoing, the prorations at the Closing shall include an appropriate credit to Seller consistent with the foregoing. 
 (b) From and after
the date hereof until Closing or termination of this Agreement, Seller shall not lien, encumber or otherwise transfer all or any interest in the Property except for Leases entered into in accordance with this Agreement and utility easements entered
into in the ordinary course of business (other than to Purchaser at Closing). 
 (c) From and after the date hereof, through the Closing or
sooner termination of this Agreement, Seller shall not market, solicit, negotiate, or enter into any agreement with any party other than Purchaser for the sale or transfer of any interest in the Property. 
 (d) Seller shall promptly deliver to Purchase any notices of default or violations received from any tenant or Governmental Authority. 
 (e) Notwithstanding anything to the contrary contained in this Agreement: (i) Seller makes no representations and assumes no responsibility with
respect to the continued occupancy of the Property or any part thereof by any tenant, (ii) the removal of a tenant whether by summary proceedings or otherwise prior to the Closing Date shall not give rise to any claim on the part of Purchaser
and (iii) Purchaser agrees that it shall not be grounds for Purchaser’s refusal to close this transaction that any tenant is a holdover tenant or in default under its Lease on the Closing Date and Purchaser shall accept title subject to
such holding over or default without an abatement in or credit against the Purchase Price. 
 7.2.4 Seller will use commercially reasonable
efforts to keep in force and effect with respect to the Property the insurance policies currently carried by Seller or policies providing similar coverage through the Closing Date. 
 7.3 Representations, Warranties and Covenants of Purchaser. Purchaser hereby represents and warrants to Seller that this Agreement and all
agreements, instruments and documents herein provided to be executed or caused to be executed by Purchaser are, or on the Closing Date will be, duly authorized, executed and delivered by and are binding upon Purchaser. Purchaser is a limited
liability company, duly organized and validly existing and in good standing under the laws of the State of Delaware, is duly authorized and qualified to do all things required of it under this Agreement, and no other action is requisite to the valid
and binding execution, delivery and performance of this Agreement by Purchaser. This Agreement and Purchaser’s performance of the obligations in this Agreement do not and will not contravene any provision of any law or regulation currently
applicable to Purchaser. Neither this Agreement nor anything provided to be done under this Agreement shall constitute or result in a default, breach or violation of any covenant, agreement, instrument, document or understanding to which Purchaser
is bound. The representations and warranties of Purchaser shall survive the Closing. 
 8. Release. 
 8.1 RELEASE. EFFECTIVE AS OF THE CLOSING, PURCHASER SHALL BE DEEMED TO HAVE RELEASED SELLER AND ALL SELLER RELATED 

 
PARTIES FROM ALL CLAIMS WHICH PURCHASER OR ANY AGENT, REPRESENTATIVE, AFFILIATE, EMPLOYEE, DIRECTOR, OFFICER, PARTNER, MEMBER, SERVANT, SHAREHOLDER OR OTHER
PERSON OR ENTITY ACTING ON PURCHASER’S BEHALF OR OTHERWISE RELATED TO OR AFFILIATED WITH PURCHASER (EACH, A “PURCHASER RELATED PARTY”) HAS OR MAY HAVE ARISING FROM OR RELATED TO ANY MATTER OR THING RELATED TO OR IN CONNECTION WITH THE
PROPERTY INCLUDING THE DOCUMENTS AND INFORMATION REFERRED TO HEREIN, THE LEASES AND THE TENANTS THEREUNDER, ANY CONSTRUCTION DEFECTS, ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION OF ALL OR ANY PORTION OF THE PROPERTY AND ANY ENVIRONMENTAL
CONDITIONS, AND PURCHASER SHALL NOT LOOK TO SELLER OR ANY SELLER RELATED PARTIES IN CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF. THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS,
INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION, PROVIDED THAT THIS RELEASE SHALL NOT BE APPLICABLE TO PURCHASER’S RIGHT TO IMPLEAD OR OTHERWISE SEEK JOINDER OF SELLER SOLELY WITH RESPECT TO ANY CLAIMS
BROUGHT AGAINST PURCHASER BY A THIRD PARTY UNAFFILIATED WITH PURCHASER RELATING TO HAZARDOUS MATERIALS DISPOSED OF OR RELEASED IN, ON OR UNDER THE PROPERTY DURING SELLER’S PERIOD OF OWNERSHIP OF THE PROPERTY AND FOR WHICH SELLER SHALL BE LIABLE
UNDER ANY STATUTE CONCERNING LIABILITY FOR CONTAMINATION BY HAZARDOUS MATERIALS. FURTHERMORE, THIS RELEASE SHALL NOT BE APPLICABLE TO ANY CLAIMS ARISING OUT OF (A) THE EXPRESS COVENANTS, REPRESENTATIONS, OR WARRANTIES SET FORTH IN THIS
AGREEMENT THAT SHALL EXPRESSLY SURVIVE THE CLOSING, OR (B) SELLER’S FRAUD. 
 8.2 Survival. The provisions of this
Section 8 shall survive the Closing or earlier termination of this Agreement. 
 9. Remedies For Default and Disposition of the
Deposit. 
 9.1 SELLER DEFAULTS. IF SELLER DEFAULTS IN ITS OBLIGATIONS HEREUNDER TO SELL THE PROPERTY, THEN PURCHASER SHALL HAVE,
AS ITS EXCLUSIVE REMEDIES (ALL OTHER RIGHTS AND/OR REMEDIES, WHETHER AVAILABLE AT LAW OR IN EQUITY, BEING IRREVOCABLY WAIVED) THE RIGHT TO EITHER (A) TERMINATE THIS AGREEMENT (IN WHICH EVENT THE DEPOSIT SHALL BE RETURNED TO PURCHASER), SELLER
SHALL PAY TO PURCHASER AN AMOUNT EQUAL TO PURCHASER’S REIMBURSABLE DUE DILIGENCE EXPENSES (AS HEREINAFTER DEFINED), AND NEITHER PARTY HERETO SHALL HAVE ANY FURTHER OBLIGATION OR LIABILITY TO THE OTHER EXCEPT WITH RESPECT TO THOSE PROVISIONS OF
THIS AGREEMENT WHICH EXPRESSLY SURVIVE THE TERMINATION OF THIS AGREEMENT), PURCHASER HEREBY WAIVING ANY RIGHT OR CLAIM TO DAMAGES FOR SELLER’S BREACH, OR (B) IF SELLER SHALL WILLFULLY FAIL TO TRANSFER THE PROPERTY PURSUANT TO AND IN
ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, SPECIFICALLY ENFORCE 

 
SELLER’S OBLIGATION TO TRANSFER THE PROPERTY (IT BEING ACKNOWLEDGED THAT THE REMEDY OF SPECIFIC PERFORMANCE SHALL NOT BE APPLICABLE TO ANY OTHER
COVENANT OR AGREEMENT OF SELLER CONTAINED HEREIN); PROVIDED THAT ANY ACTION BY PURCHASER FOR SPECIFIC PERFORMANCE MUST BE FILED, IF AT ALL, WITHIN FORTY-FIVE (45) DAYS OF SELLER’S DEFAULT, AND THE FAILURE TO FILE WITHIN SUCH PERIOD SHALL
CONSTITUTE A WAIVER BY PURCHASER OF SUCH RIGHT AND REMEDY. IF PURCHASER SHALL NOT HAVE FILED AN ACTION FOR SPECIFIC PERFORMANCE WITHIN THE AFOREMENTIONED TIME PERIOD OR SO NOTIFIED SELLER OF ITS ELECTION TO TERMINATE THIS AGREEMENT, PURCHASER’S
SOLE REMEDY SHALL BE TO TERMINATE THIS AGREEMENT IN ACCORDANCE WITH CLAUSE (A) ABOVE. AS USED HEREIN, “PURCHASER’S REIMBURSABLE DUE DILIGENCE EXPENSES” SHALL MEAN AND REFER TO THIRD-PARTY OUT-OF-POCKET EXPENSES ACTUALLY INCURRED
BY PURCHASER IN CONNECTION WITH THE NEGOTIATION AND PREPARATION OF THIS AGREEMENT (INCLUDING ATTORNEYS’ FEES) AND IN CONNECTION WITH PURCHASER’S INVESTIGATIONS AS TO THE PROPERTY PRIOR TO THE TERMINATION OF THIS AGREEMENT BY PURCHASER;
PROVIDED, HOWEVER, (I) IN NO EVENT SHALL SELLER BE OBLIGATED UNDER THIS AGREEMENT TO REIMBURSE PURCHASER FOR PURCHASER’S REIMBURSABLE DUE DILIGENCE EXPENSES (IN THE AGGREGATE) IN EXCESS OF FIFTY THOUSAND DOLLARS ($50,000) AND (II)
SELLER’S OBLIGATION HEREUNDER TO REIMBURSE PURCHASER FOR PURCHASER’S REIMBURSABLE DUE DILIGENCE EXPENSES SHALL RELATE ONLY TO PURCHASER’S REIMBURSABLE DUE DILIGENCE EXPENSES WITH RESPECT TO WHICH PURCHASER DELIVERS TO SELLER A
THIRD-PARTY INVOICE (WITH REASONABLE SUPPORTING INFORMATION AND DOCUMENTATION AND EVIDENCE OF PAYMENT) WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH PURCHASER GIVES SELLER WRITTEN NOTICE OF PURCHASER’S TERMINATION OF THIS AGREEMENT.

 9.2 PURCHASER DEFAULTS. NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN SECTION 9.1, IF PURCHASER DEFAULTS IN ITS
OBLIGATIONS HEREUNDER TO PURCHASE THE PROPERTY, THEN THIS AGREEMENT SHALL TERMINATE AND THE RETENTION OF THE DEPOSIT SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, SUBJECT TO THE PROVISIONS OF THIS AGREEMENT THAT EXPRESSLY
SURVIVE THE TERMINATION OF THIS AGREEMENT; PROVIDED, HOWEVER, NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED TO LIMIT SELLER’S RIGHTS OR DAMAGES UNDER ANY INDEMNITIES GIVEN BY PURCHASER TO SELLER UNDER THIS AGREEMENT. IN CONNECTION WITH THE
FOREGOING, THE PARTIES RECOGNIZE THAT SELLER WILL INCUR EXPENSE IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT AND THAT THE PROPERTY WILL BE REMOVED FROM THE MARKET; FURTHER, THAT IT IS EXTREMELY DIFFICULT AND IMPRACTICABLE TO
ASCERTAIN THE EXTENT OF DETRIMENT TO SELLER CAUSED BY THE BREACH BY PURCHASER UNDER THIS AGREEMENT AND THE FAILURE OF THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT OR THE AMOUNT OF COMPENSATION SELLER SHOULD RECEIVE AS A RESULT
OF PURCHASER’S BREACH OR DEFAULT. 

 9.3 Disposition of Deposit. In the event the transaction contemplated by this Agreement shall
close, the Deposit shall be applied as a partial payment of the Purchase Price. 
 10. Intentionally Omitted. 
 11. Miscellaneous. 
 11.1
Brokers. 
 11.1.1 Except as provided in Section 11.1.2 below, Seller represents and warrants to Purchaser, and Purchaser
represents and warrants to Seller, that no broker or finder has been engaged by it, respectively, in connection with the sale contemplated under this Agreement. In the event of a claim for broker’s or finder’s fee or commissions in
connection with the sale contemplated by this Agreement, then Seller shall indemnify, defend and hold harmless Purchaser from the same if it shall be based upon any statement or agreement alleged to have been made by Seller, and Purchaser shall
indemnify, defend and hold harmless Seller from the same if it shall be based upon any statement or agreement alleged to have been made by Purchaser. The indemnification obligations under this Section 11.1.1 shall survive the Closing or
termination of this Agreement. 
 11.1.2 If and only if the sale contemplated hereunder closes, Seller has agreed to pay a brokerage
commission to Jones Lang LaSalle (“Broker”) pursuant to a separate written agreement between Seller and Broker. Section 11.1.1 hereof is not intended to apply to leasing commissions incurred in accordance with this Agreement.

 11.2 Limitation of Liability. 
 11.2.1 Notwithstanding anything to the contrary contained in this Agreement or any documents executed in connection herewith, if the Closing of the transaction contemplated hereunder shall have occurred, (i) the aggregate liability of
Seller, excluding Seller’s liability for the representations and indemnity of Seller set forth in Section 11.1 and the prorations provided for in Section 5.4, arising pursuant to or in connection with the representations, warranties,
indemnifications, covenants or other obligations (whether express or implied) of Seller under this Agreement or any document or certificate executed or delivered in connection herewith shall not exceed Three Hundred Thousand Dollars ($300,000) (the
“Liability Ceiling”), and (ii) in no event shall Seller have any liability to Purchaser unless and until the aggregate liability of Seller arising pursuant to or in connection with the representations, warranties, indemnifications,
covenants or other obligations (whether express or implied) of Seller under this Agreement or any document or certificate executed or delivered in connection herewith shall exceed Twenty Five Thousand Dollars ($25,000) (the “Liability
Floor”). If Seller’s aggregate liability to Purchaser shall exceed the Liability Floor, Seller shall be liable for the entire amount thereof up to but not exceeding the Liability Ceiling. 
 11.2.2 No shareholder or agent of Seller, nor any Seller Related Parties, shall have any personal liability, directly or indirectly, under or in
connection with this Agreement or any agreement made or entered into under or pursuant to the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and Purchaser and
its successors and assigns and, without 

 
limitation, all other persons and entities, shall look solely to Seller’s assets for the payment of any claim or for any performance, and Purchaser, on
behalf of itself and its successors and assigns, hereby waives any and all such personal liability. 
 11.2.3 The provisions of this
Section 11.2 shall survive the Closing or termination of this Agreement. 
 11.3 Exhibits; Entire Agreement; Modification. All
exhibits attached and referred to in this Agreement are hereby incorporated herein as if fully set forth in (and shall be deemed to be a part of) this Agreement. This Agreement contains the entire agreement between the parties respecting the matters
herein set forth and supersedes any and all prior agreements between the parties hereto respecting such matters. This Agreement may not be modified or amended except by written agreement signed by both parties. 
 11.4 Business Days. Whenever any action must be taken (including the giving of notice or the delivery of documents) under this Agreement during a
certain period of time (or by a particular date) that ends (or occurs) on a non-Business Day, then such period (or date) shall be extended until the next succeeding Business Day. As used herein, the term “Business Day” shall be deemed to
mean any day, other than a Saturday or Sunday, on which commercial banks in the State of New York or in the State of New Jersey are not required or authorized to be closed for business. Unless expressly indicated otherwise, (a) all references
to time shall be deemed to refer to Eastern time, and (b) all time periods shall expire at 5:00 p.m. Eastern time. 
 11.5
Interpretation. Section headings shall not be used in construing this Agreement. Each party acknowledges that such party and its counsel, after negotiation and consultation, have reviewed and revised this Agreement. As such, the terms of this
Agreement shall be fairly construed and the usual rule of construction, to wit, that ambiguities in this Agreement should be resolved against the drafting party, shall not be employed in the interpretation of this Agreement or any amendments,
modifications or exhibits hereto or thereto. Whenever the words “including”, “include” or “includes” are used in this Agreement, they shall be interpreted in a non-exclusive manner. Except as otherwise indicated, all
Exhibit and Section references in this Agreement shall be deemed to refer to the Exhibits and Sections in this Agreement. 
 11.6
Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of New Jersey. 
 11.7
Successors and Assigns. Purchaser may not assign or transfer its rights or obligations under this Agreement without the prior written consent of the Seller, which consent may be given or withheld in the sole and absolute discretion of Seller;
provided that, in the event of such an assignment or transfer, the transferee shall assume in writing all of the transferor’s obligations hereunder (but Purchaser or any subsequent transferor shall not be released from obligations hereunder).
Notwithstanding and without limiting the foregoing, no consent given by Seller to any transfer or assignment of Purchaser’s rights or obligations hereunder shall be deemed to constitute a consent to any other transfer or assignment of
Purchaser’s rights or obligations hereunder and no transfer or assignment in violation of the provisions hereof shall be valid or enforceable. Subject to the foregoing, this Agreement and the terms and provisions 

 
hereof shall inure to the benefit of and be binding upon the successors and assigns of the parties. Notwithstanding the foregoing, Purchaser shall have the
right to assign its rights and obligations under this Agreement to an entity that is a real estate investment trust (“REIT”) (or that is wholly owned directly or indirectly by a REIT) for which Purchaser or an affiliate of Purchaser acts
as the sole investment advisor without the prior written consent of Seller; provided that Purchaser provides immediate notice of any such assignment to Seller. Notwithstanding the foregoing, Purchaser shall not be relieved of its obligations under
this Agreement by such assignment or nomination. If Purchaser’s assignee or nominee has satisfied all of Purchaser’s obligations under this Agreement as of the Closing (including, without limitation, the payment of the Purchase Price to
Seller, subject to permitted prorations and adjustments), and has signed a written assumption of all of Purchaser’s obligations under this Agreement, Purchaser (but not the assignee) shall automatically be released from any further obligations
or responsibilities under this Agreement upon Closing. 
 11.8 Notices. All notices, requests or other communications which may be or
are required to be given, served or sent by either party hereto to the other shall be (a) delivered in person or by facsimile transmission, with receipt thereof confirmed by printed facsimile acknowledgment (with a confirmation copy delivered
in person or by overnight delivery contemporaneously therewith), (b) by overnight delivery with any reputable overnight courier service, or (c) by deposit in any post office or mail depository regularly maintained by the United States
Postal Office and sent by registered or certified mail, postage paid, return receipt requested, and shall be effective upon receipt (whether refused or accepted) and, in each case, addressed as follows: 
  

					
		 	To Seller:
		
		 	 Mountainview Realty Holding Company
 245 Park
Avenue

		 	New York, New York 10167
		 	Attention:	 	Cavarly E. Garrett
		 	Facsimile:	 	(212) 648-2265
		 	Telephone:	 	(212) 648-2953
		
		 	With a Copy To:
		
		 	Mountainview Realty Holding Company
		 	P.O. Box 5005
		 	New York, New York 10163-5005
		
		 	With a Copy To:
		
		 	Stroock & Stroock & Lavan LLP
		 	180 Maiden Lane
		 	New York, New York 10038-4982
		 	Attention:	 	Brian Diamond, Esq.

					
		 	Facsimile:	 	(212) 806-6006
		 	Telephone:	 	(212) 806-5569
		
		 	To Purchaser:
		
		 	KBSII Mountain View, LLC
		 	590 Madison Avenue, 26th Floor
		 	New York, New York 10022
		 	Attention:	 	Shannon Hill
		 	Facsimile:	 	(212) 644-6662 x 227
		 	Telephone:	 	(212) 644-1372
		
		 	With a Copy To:
		
		 	KBSII Mountain View, LLC
		 	620 Newport Center Drive, Suite 1300
		 	Newport Beach, California 92660
		 	Attention:	 	James Chiboucas, Esq.
		 	Facsimile:	 	(949) 417-6523
		 	Telephone:	 	(949) 417-6555
		
		 	And a Copy To:
		
		 	Morgan, Lewis & Bockius LLP
		 	5 Park Plaza, Suite 1750
		 	Irvine, California 92614
		 	Attention:	 	L. Bruce Fischer, Esq.
		 	Facsimile:	 	(949) 399-7001
		 	Telephone:	 	(949) 399-7145

 All notices required under this Agreement may be given by Purchaser’s and Seller’s
counsels, as applicable. 
 11.9 Third Parties. Nothing in this Agreement, whether expressed or implied, is intended to confer any
rights or remedies under or by reason of this Agreement upon any other person other than the parties hereto and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or
liability of any third persons to any party to this Agreement, nor shall any provision give any third parties any right of subrogation or action over or against any party to this Agreement. This Agreement is not intended to and does not create any
third party beneficiary rights whatsoever. 
 11.10 Legal Costs. The parties hereto agree that they shall pay directly any and all
legal costs which they have incurred on their own behalf in the preparation of this Agreement, all deeds and other agreements pertaining to this transaction, and that such legal costs shall not be part of the closing costs. In any action or
proceeding between the parties to enforce or interpret any of the terms or provisions of this Agreement, the prevailing party in the action or proceeding shall be entitled to, in addition to damages, injunctive relief or other relief, its 

 
reasonable costs and expenses, including, without limitation, costs and reasonable attorneys’ fees, both at trial and on appeal. 
 11.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same document. 
 11.12 Effectiveness. In no event shall any draft of this Agreement create any obligation or
liability, it being understood that this Agreement shall be effective and binding only when a counterpart hereof has been executed and delivered by each party hereto. Seller shall have the right to discontinue negotiations and withdraw any draft of
this Agreement at any time prior to the full execution and delivery of this Agreement by each party hereto. Purchaser assumes the risk of all costs and expenses incurred by Purchaser in any negotiations or due diligence investigations undertaken by
Purchaser with respect to the Property. 
 11.13 No Implied Waivers. No failure or delay of either party in the exercise of any right
or remedy given to such party hereunder or the waiver by any party of any condition hereunder for its benefit (unless the time specified in this Agreement for exercise of such right or remedy has expired) shall constitute a waiver of any other or
further right or remedy nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof or any other right or remedy. No waiver by either party of any breach hereunder or failure or refusal by the other
party to comply with its obligations shall be deemed a waiver of any other or subsequent breach, failure or refusal to so comply. 
 11.14
Discharge of Seller’s Obligations. Except as otherwise expressly provided in this Agreement, Purchaser’s acceptance of the Deed shall be deemed a discharge of all of the obligations of Seller hereunder and all of Seller’s
representations, warranties, covenants and agreements in this Agreement shall merge in the documents and agreements executed at the Closing and shall not survive the Closing, except and to the extent that, pursuant to the express provisions of this
Agreement, any of such representations, warranties, covenants or agreements are to survive the Closing. 
 11.15 No Recordation.
Neither this Agreement nor any memorandum thereof shall be recorded and any attempted recordation hereof shall be void and shall constitute a default hereunder. 
 11.16 Unenforceability. If all or any portion of any provision of this Agreement shall be held to be invalid, illegal or unenforceable in any respect, then such invalidity, illegality or unenforceability shall
not affect any other provision hereof, and such provision shall be limited and construed as if such invalid, illegal or unenforceable provision or portion thereof were not contained herein unless doing so would materially and adversely affect a
party or the benefits that such party is entitled to receive under this Agreement. 
 11.17 Waiver of Trial by Jury. SELLER AND
PURCHASER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER ARISING IN TORT OR CONTRACT) BROUGHT BY EITHER AGAINST THE OTHER ON ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED 

 
WITH THIS AGREEMENT. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE CLOSING. 
 11.18 Disclosure. Notwithstanding any terms or conditions in this Agreement to the contrary, but subject to restrictions reasonably necessary to
comply with federal or state securities laws, any person may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions or other tax
analyses) that are provided relating to such tax treatment and tax structure. For the avoidance of doubt, this authorization is not intended to permit disclosure of the names of, or other identifying information regarding, the participants in the
transaction, or of any information or the portion of any materials not relevant to the tax treatment or tax structure of the transaction. The provisions of this Section shall survive the Closing. 
 11.19 Designation of Reporting Person. In order to assure compliance with the requirements of Section 6045 of the Code and any related
reporting requirements of the Code, the parties hereto agree as follows: 
 (a) The Title Company (for purposes of this Section, the
“Reporting Person”), by its execution hereof, hereby assumes all responsibilities for information reporting required under Section 6045(e) of the Code. 
 (b) Seller and Purchaser each hereby agree: 
 (ii) to provide to the Reporting Person all
information and certifications regarding such party, as reasonably requested by the Reporting Person or otherwise required to be provided by a party to the transaction described herein under Section 6045 of the Code; and 
 (iii) to provide to the Reporting Person such party’s taxpayer identification number and a statement (on Internal Revenue Service
Form W-9 or an acceptable substitute form, or on any other form the applicable current or future Code sections and regulations might require and/or any form requested by the Reporting Person), signed under penalties of perjury, stating that the
taxpayer identification number supplied by such party to the Reporting Person is correct. 
 (c) Each party hereto agrees to retain this
Agreement for not less than four years from the end of the calendar year in which Closing occurred, and to produce it to the Internal Revenue Service upon a valid request therefore. 
 (d) The addresses for Seller and Purchaser are as set forth in Section 11.8 hereof, and the real estate subject to the transfer provided for in
this Agreement is described in Exhibit A. 
 11.20 Press Releases. Except as provided in Section 4.2.1(b), any press
release or other public disclosure regarding this Agreement or the transaction contemplated hereby shall not be made by Purchaser or Seller without the other party’s prior written consent. 

 11.21 Entire Property. Purchaser acknowledges that this Agreement is made with respect to the
purchase and sale of the entire Property and that the nothing contained herein shall be construed as giving Purchaser the right to purchase only part thereof. 
 11.22 Survival. The provisions of this Section 11 shall survive the Closing or earlier termination of this Agreement. 
 11.23 Escrow Instructions. This Agreement when signed by Purchaser and Seller shall also constitute escrow instructions to Escrowee. When both (i) this Agreement, fully signed, or in signed counterparts,
and (ii) the Initial Deposit have been delivered to Escrowee, Escrow shall be deemed open (“Opening of Escrow”), and Escrowee shall immediately notify Purchaser and Seller by telephone and in writing of the date of the Opening of
Escrow. 
 [Remainder of Page Intentionally Left Blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

					
		 	SELLER:
		
		 	 MOUNTAINVIEW REALTY HOLDING COMPANY,
 a Delaware corporation

			
		 	By:	 	 /s/ Cavarly E. Garrett

		 		 	Cavarly E. Garrett
		 		 	Vice President

 [Remainder of page intentionally left blank; signatures continued on following page] 

 [Signatures continued from previous page] 
  

													
		 	PURCHASER:
		
		 	 KBSII MOUNTAIN VIEW, LLC,
 a Delaware
limited liability company

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

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

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

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

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

		 		 		 		 		 		 	Charles J. Schreiber, Jr.
		 		 		 		 		 		 	Chief Executive Officer

 WITH RESPECT TO SECTIONS 3.3 AND 11.19 ONLY: 
  

					
		 	LAWYERS TITLE INSURANCE CORPORATION
			
		 	By:	 	 /s/ Authorized Signatory

		 	Name:	 	
		 	Title:Loan Agreement  related to Mountain View Corporate Center

 Exhibit 10.3 
  
  
  
 LOAN AGREEMENT 
 (Non-Revolving) 

 BETWEEN 
 KBSII MOUNTAIN
VIEW, LLC, 
 a Delaware limited liability company, 
 AS BORROWER, 
 AND 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 AS LENDER 
 Dated as of July 30, 2008 
 Loan
No. 1000622 
  
  
  

 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.
	 	13
		  	 (c)    Term; Extension Option.
	 	13
		  	 (d)    Borrower Representatives.
	 	14
	2.2	  	Fees; Expenses.	 	15
		  	 (a)    Fees and Expenses.
	 	15
		  	 (b)    Unused Fee.
	 	15
		  	 (c)    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.
	 	16
		  	 (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 Initial Disbursement.	 	22
		  	 (a)    Loan Documents.
	 	22
		  	 (b)    Property Documents.
	 	23
		  	 (c)    Organizational Documents.
	 	23

  

 i 

					
		  	 (d)    Fixed Rate Notice.
	  	24
		  	 (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.
	  	24
		  	 (n)    Insurance.
	  	24
		  	 (o)    Due Diligence.
	  	24
		  	 (p)    Representations and Warranties.
	  	25
	4.2	  	Conditions to Subsequent Disbursements.	  	25
		  	 (a)    Disbursement Requests.
	  	25
		  	 (b)    Additional Matters.
	  	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.	  	27
	5.7	  	Prior Financials.	  	27
	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.	  	28
	5.12	  	No Material Adverse Change.	  	28
	5.13	  	Payment of Taxes.	  	28
	5.14	  	Material Adverse Agreements.	  	29
	5.15	  	Performance.	  	29
	5.16	  	Federal Reserve Regulations.	  	29
	5.17	  	Disclosure.	  	29
	5.18	  	Requirements of Law; ERISA.	  	29
	5.19	  	Environmental Matters.	  	30
	5.20	  	Major Agreements; Leases.	  	30
	5.21	  	Solvency.	  	31
	5.22	  	Title to Property; No Liens.	  	31
	5.23	  	Use of Proceeds.	  	31
	5.24	  	Property Management Agreements.	  	31
	5.25	  	Single Purpose Entity.	  	31
	5.26	  	Tax Shelter Regulations.	  	31
	5.27	  	Organizational Documents.	  	31

  

 ii 

					
	ARTICLE VI REPORTING COVENANTS	  	32
			
	6.1	  	 Financial Statements and Other Financial and Operating Information (Borrower).	  	32
		  	 (a)    Operating Statements and Operating Results.
	  	32
		  	 (b)    Quarterly Financial Statements.
	  	32
		  	 (c)    Borrower’s Certificate.
	  	32
		  	 (d)    Budgets.
	  	33
		  	 (e)    Knowledge of Event of Default.
	  	33
		  	 (f)     Litigation, Arbitration or Government Investigation.
	  	34
		  	 (g)    ERISA Matters.
	  	34
		  	 (h)    Other Information.
	  	34
		  	 (i)     Accountant Reports.
	  	34
	6.2	  	Financial Statements and Other Financial and Operating Information (KBS REIT II).	  	34
		  	 (a)    Quarterly Financial Statements.
	  	35
		  	 (b)    Additional Reporting.
	  	35
	6.3	  	Environmental Notices.	  	35
	6.4	  	Confidentiality.	  	35
		
	ARTICLE VII AFFIRMATIVE COVENANTS	  	36
			
	7.1	  	Existence.	  	36
	7.2	  	Qualification, Name.	  	36
	7.3	  	Compliance with Laws, Etc.	  	36
	7.4	  	Payment of Taxes and Claims.	  	36
	7.5	  	Maintenance of Property; Insurance.	  	36
	7.6	  	Inspection of Property; Books and Records; Discussions.	  	37
	7.7	  	Maintenance of Permits, Etc.	  	37
	7.8	  	Single Purpose Entity.	  	37
	7.9	  	Subordination of Property Management Agreements.	  	37
	7.10	  	SNDAs.	  	37
	7.11	  	Default by Major Tenant.	  	37
		
	ARTICLE VIII NEGATIVE COVENANTS	  	38
			
	8.1	  	Operating Restrictions:	  	38
		  	 (a)    Indebtedness; Liens.
	  	38
		  	 (b)    Transfers of Collateral.
	  	38
		  	 (c)    Restrictions on Fundamental Changes.
	  	38
		  	 (d)    Loans to Other Persons; Investments.
	  	38
	8.2	  	Amendment of Constituent Documents.	  	39
	8.3	  	Margin Regulations.	  	39
	8.4	  	Ownership; Management.	  	39
		  	 (a)    Ownership of Borrower.
	  	39
		  	 (b)    Management.
	  	39
		
	ARTICLE IX FINANCIAL COVENANT	  	39
			
	9.1	  	Distributions.	  	40
	9.2	  	Incurrence of Additional Indebtedness.	  	40
		
	ARTICLE X EVENTS OF DEFAULT; RIGHTS AND REMEDIES	  	40

  

 iii 

					
	10.1	  	Events of Default.	  	40
		  	 (a)    Failure to Make Payments When Due.
	  	40
		  	 (b)    Distributions; Additional Indebtedness.
	  	40
		  	 (c)    Other Defaults.
	  	40
		  	 (d)    Breach of Representation or Warranty.
	  	41
		  	 (e)    Involuntary Bankruptcy; Appointment of Receiver, Etc.
	  	41
		  	 (f)     Voluntary Bankruptcy; Appointment of Receiver, Etc.
	  	41
		  	 (g)    Judgments and Attachments.
	  	41
		  	 (h)    Dissolution.
	  	42
		  	 (i)     Loan Documents; Failure of Security.
	  	42
		  	 (j)     ERISA Liabilities.
	  	42
		  	 (k)    Environmental Liabilities.
	  	42
		  	 (l)     Solvency; Material Adverse Change.
	  	42
		  	 (m)   Interest Rate Management Agreement.
	  	42
		  	 (n)    KBS REIT II Covenant Compliance.
	  	42
		  	 (o)    Obligations of Guarantor.
	  	42
	 10.2
	  	 Rights and Remedies.
	  	43
		  	 (a)    Acceleration, Etc.
	  	43
		  	 (b)    Access to Information.
	  	43
		  	 (c)    Use of Intangibles.
	  	43
		  	 (d)    Waiver of Demand.
	  	44
		  	 (e)    Waivers, Amendments and Remedies.
	  	44
	 10.3
	  	 Permitted REIT Distributions.
	  	44
		
	ARTICLE XI MISCELLANEOUS	  	44
			
	11.1	  	Expenses.	  	44
		  	 (a)    Generally.
	  	44
		  	 (b)    After Event of Default.
	  	45
	11.2	  	Indemnity.	  	45
	11.3	  	Change in Accounting Principles.	  	46
	11.4	  	Amendments and Waivers.	  	46
	11.5	  	Independence of Covenants.	  	46
	11.6	  	Notices and Delivery.	  	46
	11.7	  	Survival of Warranties, Indemnities and Agreements.	  	47
	11.8	  	Failure or Indulgence Not Waiver; Remedies Cumulative.	  	47
	11.9	  	Marshalling; Payments Set Aside.	  	47
	11.10	  	Severability.	  	47
	11.11	  	Headings.	  	47
	11.12	  	Governing Law; Waiver.	  	47
	11.13	  	Limitation of Liability.	  	47
	11.14	  	Successors and Assigns.	  	48
	11.15	  	Consent to Jurisdiction and Service of Process; Waiver of Jury Trial.	  	48
	11.16	  	Counterparts; Effectiveness; Inconsistencies.	  	48
	11.17	  	Performance of Obligations.	  	49
	11.18	  	Construction.	  	49
	11.19	  	Entire Agreement.	  	49

  

 iv 

					
	11.20	  	Assignments and Participations.	  	49
	11.21	  	Limitation on Personal Liability of Shareholders, Partners and Members.	  	50
	11.22	  	Intentionally Omitted.	  	51
	11.23	  	USA Patriot Act Notice, Compliance.	  	51
	11.24	  	Electronic Document Deliveries.	  	51

 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 II Compliance Certificate
	 D
	  	-	  	Transfer Authorizer Designation
	 E
	  	-	  	KBS REIT II 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 Agreement

  

 v 

 LOAN AGREEMENT 
 THIS LOAN AGREEMENT is dated as of July 30, 2008 (as amended, supplemented or modified from time to time, the “Agreement”) and is between KBSII MOUNTAIN VIEW, 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 Thirteen Million Five Hundred Thousand
Dollars ($13,500,000), to be secured by a 134,980 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 II or the REIT II 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. 412-1750244 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). 
 “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. 
 “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. 
  

 3 

 “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. 
 “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 

  

 4 

 
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. 
 “Guarantor” – means KBS REIT Properties II, LLC, a Delaware limited liability company, and any other person or entity who, or which, in any manner, is or becomes obligated to Lender under any guaranty now or hereafter
executed in connection with respect to the Loan (collectively or severally as the context thereof may suggest or require). 
 “Holdback Amount” has the meaning set forth in Section 2.1(a)(i). 
 “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. 
 “Initial Disbursement” has the meaning set forth in Section 2.1(a)(i).

 “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 II” means KBS Real Estate Investment Trust II, Inc., a Maryland corporation. 
 “KBS REIT II Compliance Certificate” means a certificate, certifying as to the matters set forth therein, signed on behalf of KBS REIT
II by an authorized signatory having primary responsibility with respect to the matters set forth therein. 
  

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 “Lease” means a tenant lease of all or any portion of the Property. 
 “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: Thirteen Million Five Hundred Thousand Dollars
($13,500,000). 
 “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 10% 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 

  

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Rental Rate is less than 85% of the amount assumed for such Lease estimated effective in the then most recent Appraisal. 
 “Manager” means KBS Capital Advisors LLC, a Delaware limited liability company, or any replacement asset manager of KBS REIT II
appointed in accordance with Section 8.4(b). 
 “Management Agreement” means the Advisory Agreement dated
May 21, 2008 between Manager and KBS REIT II. 
 “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 (i) 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); and (ii) an amount for reasonable capital reserves equal to $33,745 ($0.25 per square foot of net rentable area (134,980 square feet)). 
  

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 “Note” means the Promissory Note Secured by Mortgage, 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. 
 “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 three percent (3%) 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 CB Richard Ellis Valuation and Advisory Services, dated July 21, 2008.

 “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. 
 “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; 
  

 8 

 (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 II to the extent that, if not distributed to KBS REIT II: 
 (a) KBS REIT II would, as the result of the failure of Borrower to receive cash from the Property, be unable to distribute all KBS REIT II taxable income
with respect to the Property, or 
 (b) KBS REIT II would, solely as a result of the failure of Borrower to receive cash from the Property,
fail to satisfy its obligations to pay REIT II 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. 
 “Property” shall have the meaning set forth in the recitals. 
  

 9 

 “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 $30,000,000. 
 “Regulations G, T, U and X” mean
such Regulations of the Federal Reserve Board as in effect from time to time. 
 “REIT II Operating Expenses” means the
Allocated Share of all actual costs, expenses and/or amounts incurred by, or payable or reimbursable by, KBS REIT II or the REIT II 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 II Operating Partnership” shall mean KBS Limited Partnership II, 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. 
  

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 “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. 
 “Subsequent Disbursement” has the meaning set forth in
Section 2.1(a)(ii). 
 “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. 
  

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 “Uniform Commercial Code” means the Uniform Commercial Code as in effect on the date
hereof in the State of California. 
 “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 as follows: 
 (i) Initial Disbursement. Lender hereby agrees to make an initial advance of the
proceeds of the Loan to Borrower by means of a single disbursement on the Closing Date. From the Loan proceeds in the amount of Thirteen Million Five Hundred Thousand Dollars ($13,500,000), Lender shall disburse on the Closing Date to Lawyer’s
Title Insurance Company the amount of Nine Million Five Hundred Thousand Dollars ($9,500,000) for the benefit of Borrower (the “Initial Disbursement”). The balance of the Loan, in the amount 

  

 12 

 
of Four Million Dollars ($4,000,000) (the “Holdback Amount”), shall be held back for disbursement by Lender in accordance with
Section 2.1(a)(ii). 
 (ii) Subsequent Disbursements. Subject to Borrower’s satisfaction of the conditions to
disbursement contained in Sections 4.1 and 4.2 below, at the request of Borrower made any time prior to the Maturity Date (as such date may be extended in accordance with Section 2.1(c) below), Lender shall make
disbursements of the Holdback Amount (any such disbursement, a “Subsequent Disbursement”). Any remaining portion of the Holdback Amount which has not been disbursed by the Maturity Date (as such date may be extended in accordance
with Section 2.1(c) below) shall be cancelled automatically. Additionally, any portion of the Loan which is repaid may not be reborrowed. A fee of 0.125% per annum of the average undisbursed Holdback Amount shall be payable at the
end of each calendar quarter in arrears in consideration for Lender maintaining the Holdback Amount. For the avoidance of doubt, the first quarterly payment under this Section 2.1(a)(ii) shall be due and payable on October 1, 2008

 (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 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) January 30, 2009, (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 ninety (90) day period (i.e., to April 30, 2009), 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; 
  

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 (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 forty-five percent (45%) of the Appraised Value of the Property, provided that Lender shall have the right, in its sole and absolute discretion, to obtain a new Appraisal of the Property at Borrower’s expense;

 (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; 
 (viii) Borrower shall have caused KBS REIT II to deliver to Lender an executed KBS REIT II Compliance Certificate confirming that KBS REIT II is in compliance with each of the covenants set forth on Exhibit E;

 (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 Commitment; and 
 (x) Borrower shall pay to Lender a
non-refundable extension fee in an amount equal to 0.125% of the outstanding Loan Commitment, whether disbursed or undisbursed, 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), (vii) and (ix) 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 

  

 14 

 
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 $33,750 plus a non-refundable underwriting fee in an amount equal to $7,500 plus certain costs and expenses (as set forth on Schedule 2.2(a)). 
 (b) Unused Fee. As set forth in Section 2.1(a)(ii), a fee of 0.125% per annum of the average undisbursed Holdback Amount shall be
payable at the end of each calendar quarter in arrears in consideration for Lender maintaining the Holdback Amount. For the avoidance of doubt, the first quarterly payment under this Section 2.2(b) shall be due and payable on
October 1, 2008 
 (c) Payment of Fees. The fees described in Section 2.2(a) and Section 2.2(b) 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 

  

 15 

 
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.

 (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 (“Exit
Fee”), if any, as follows: 
 (i) If the repayment of the Loan occurs on or before October 30, 2008, an Exit Fee in an amount
equal to one-quarter of one percent (0.25%) of the amount of the Loan being repaid at such time; and 
 (ii) If the repayment of the Loan
occurs on or after October 31, 2008, no Exit Fee shall be due. 
 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 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 

  

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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. Lender shall issue a full reconveyance or release of
the Property from the lien of the Security Instrument; provided 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 amounts outstanding under the
Loan together with all escrow, closing and recording costs, and the costs of preparing and delivering such reconveyance or release. 
 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; 
 (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). 
  

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 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, except in the case where an additional Appraisal is required by Lender as a condition to Borrower’s right to extend the term of the
Loan in accordance with Section 2.1(c)): 
 (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). 
 (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. 
  

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 (iv) A policy of terrorism insurance in an amount acceptable to Lender. 
 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 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. 
 (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 (1) such proposed Lease (or a term sheet (in a form reasonably approved by Lender) containing
the material business terms, and other applicable information reasonably approved by Borrower and Lender, of such proposed Lease (“Term Sheet”), which may be provided in lieu of such Lease), (2) any other reasonable information
requested by Lender, (3) in the case of a Major Lease, the financial statements and market comparisons as referenced below to the extent available and (4) a transmittal letter requesting that Lender review such proposed Lease or Term Sheet
and approve or disapprove such proposed Lease or Term Sheet 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. Notwithstanding the foregoing, Lender’s approval (or deemed approval) of a Term Sheet shall not be deemed to permit Borrower to enter into a Lease on a form other than Borrower’s previously approved form
lease (subject to modification as reasonably required by Borrower). 
 (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 

  

 19 

 
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 45%, 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, provided no Event of Default has occurred and is
continuing hereunder, 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, and provided no Event of Default has occurred and is continuing, any balance remaining in such cash collateral account shall then be disbursed to Borrower. If an Event of Default has occurred and is continuing hereunder, then any
Termination Payments shall be applied by Lender, in its discretion, notwithstanding any right that Borrower would otherwise have to distribute such funds as Permitted REIT Distributions. 
 (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 

  

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Valuation when determining the loan-to-value ratio for purposes of this Section 3.3(b)(iv). 
 (c) SNDAs. Borrower shall use commercially reasonable efforts to obtain, from the three (3) largest tenants of the Property or any tenant
leasing more than ten percent (10%) 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 $500,000 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 Initial Disbursement. The obligation of Lender to disburse
the Initial Disbursement of the Loan shall be subject to satisfaction of each of the following conditions precedent on or before the Closing Date: 
 (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) an
Absolute Assignment of Leases and Rents of even date herewith executed by Borrower, as Assignor, in favor of Lender, as Assignee; 
 (vi)
the Hazardous Materials Indemnity Agreement; 
 (vii) the Agreement for Disbursement Prior to Recordation; 
 (viii) the Limited Recourse Guaranty (provided such document shall not be secured by the Security Instrument and shall not be deemed a Loan Document for
such purpose); 
 (ix) a tax service agreement with respect to the Property; 
 (x) a borrowing certificate and all necessary authorizing resolutions authorizing Borrower’s execution, delivery and performance of the Loan
Documents; 
 (xi) 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 
  

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 (xii) 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. 
 (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 Lawyer’s 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 II), 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. 
  

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 (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 Initial 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.

 (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. 
  

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 (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 Conditions to Subsequent Disbursements. The
obligation of Lender to make any Subsequent Disbursement under the Loan is subject to the satisfaction of the following additional conditions precedent as of the requested funding date of any such Subsequent Disbursement: 
 (a) Disbursement Requests. Lender shall have received a written request for disbursement. The request shall be submitted in accordance with this
Agreement and be for an amount of at least Twenty-Five Thousand Dollars ($25,000). 
 (b) Additional Matters. As of the requested
funding date: 
 (i) Representations and Warranties. All of the representations and warranties of Borrower contained in this Agreement
or in any other Loan Document shall be true and correct in all material respects on and as of such date, as though made on and as of such date; 
 (ii) Current Transfer Authorizer Designation. Borrower shall provide Lender with a current Transfer Authorizer Designation in the form attached hereto as Exhibit D; and 
 (iii) No Event of Default. No Event of Default or Unmatured Event of Default shall have occurred and be continuing or would result from the
making of such Subsequent Disbursement. 
 4.3 Funds Transfer Disbursements. 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. 
 (a) If Lender takes any actions in an attempt to detect errors in the transmission or content of transfer or requests or takes any actions in an attempt
to detect unauthorized funds transfer requests, Borrower agrees that no matter how many times Lender takes these actions Lender will not in any situation be liable for failing to take or correctly perform these actions in the future, and such
actions shall not become any part of the transfer disbursement procedures authorized under this provision, the Loan Documents or any agreement between Lender and Borrower. Borrower agrees to notify Lender of any errors in the transfer of 

  

 25 

 
any funds or of any unauthorized or improperly authorized transfer requests within fourteen (14) days after Lender’s confirmation to Borrower of
such transfer. 
 (b) 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. 
 (c) 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 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

  

 26 

 
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 II) 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. 
 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. 
  

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 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. 
 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 

  

 28 

 
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. 
 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 

  

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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, 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 

  

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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). 
 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 II), 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 September 30, 2008, 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 II) 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 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 

  

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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 operating and equipment leases if such
contingent liabilities arising from trade payables and operating and equipment leases exceed $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 II’s failure to satisfy any covenant contained in Exhibit E), 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 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.

  

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 (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). 
 (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 II). Borrower shall deliver, or cause KBS REIT II to deliver, to
Lender: 
  

 34 

 (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 and statements of retained earnings for KBS REIT II (all on a consolidated basis), and (ii) a KBS REIT II 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 II by the controller of KBS REIT II. 
 (b) Additional Reporting. Upon Lender’s request therefor, any additional financial information prepared by or for KBS REIT II, including
reporting relating to individual real estate assts owned by KBS REIT II, 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 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. 
  

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 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 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 

  

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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. 
 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 the three (3) largest tenants of the Property and each of the tenants occupying more than ten percent (10%) of the net rentable area of the Property within sixty
(60) days after the Closing Date. 
 7.11 Default by Major Tenant. If either (i) Barnes & Noble College Bookstores,
Inc. (“Barnes & Noble”) declares bankruptcy or (ii) allows a monetary default under its lease (the “B&N Lease”) and remains uncured for more than thirty (30) days, Borrower shall be required
to deposit into a blocked and pledged cash collateral account with Lender, within twenty (20) business days of any such event, cash collateral in the amount of $4,600,000 (the “B&N Collateral”). Provided there does not then
exist Default or an Event of Default hereunder, such B&N Collateral shall thereafter be available for disbursement by Lender to cover any shortfall in interest reserve and/or to fund tenant improvements and leasing commissions for any
replacement lease approved by Lender. Lender’s obligation to disburse any portion of the B&N Collateral for tenant improvements may be conditioned by Lender upon Tenant’s delivery to Lender of written evidence of completion of the work
for which reimbursement is requested, inspection by Lender or an independent inspecting architect, lien waivers from all applicable contractors, and satisfactory evidence that the work completed is consistent with the terms of the 

  

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approved replacement lease and all requirements of law. Further, but without limiting Borrower’s obligation to pay interest when due, Lender is hereby
authorized to directly apply the B&N Collateral to pay any interest due and owning under the Loan, in the event that Borrower fails to do so with funds from other sources. 
 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. Subject to Section 8.4, 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 Purpose Entity wholly owned, directly or indirectly, by KBS REIT II, 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 

  

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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. 
 8.4 Ownership; Management. 
 (a) Ownership of Borrower. Except as otherwise permitted in Exhibit E attached hereto, Borrower shall be wholly owned, either directly or
indirectly, by KBS REIT II. 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 II, LLC or in
any of the direct or indirect owners of KBS REIT Properties II, LLC shall not be prohibited (and shall be expressly permitted) provided that KBS REIT II continues to own, either directly or indirectly, 100% of the ownership interests in both
Borrower and KBS REIT Properties II, LLC. 
 (b) Management. The asset manager of KBS REIT II 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. Subject to Lender’s prior written consent, which may be
withheld in Lender’s sole discretion, Manager may be replaced by another asset manager; provided, if the replacement asset manager: (i) has financial capability and management experience at least comparable to Manager; (ii) has
current assets under management of not less than 10,000,000 square feet of properties similar to the Property; (iii) has current asset management agreements with at least five (5) other institutional investors; and (iv) is currently a
customer of the Wells Fargo Wholesale Bank Commercial Real Estate Group in a borrowing capacity and in good standing, then Lender’s consent to the replacement of Manager with such substitute manager shall not be unreasonably withheld.

 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: 
  

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 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 II in order to pay Permitted REIT Distributions. 
 9.2 Incurrence of Additional Indebtedness. 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 (excepting, however, any swap, collar, cap or similar agreement with Wells Fargo Bank as the
counterparty). Further, the sum of the liabilities referred to in clauses (ii) and (v) shall at no time exceed $500,000 in the aggregate; provided, for purposes of determining whether the foregoing threshold has been exceeded, only those
liabilities referred to in clause (v) that have been outstanding for more than thirty (30) days shall be included in such calculation. 
 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 

  

 40 

 
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 
 (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. 
  

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 (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. 
 (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)
KBS REIT II Covenant Compliance. KBS REIT II’s failure to satisfy any covenant contained in Exhibit E 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 II Compliance Certificate when and as required by Section 6.2(a) above, which certificate (if
delivered) would have indicated that KBS REIT II was not in compliance with one or more of such covenants, KBS REIT II corrects any non-compliance issues to Lender’s satisfaction. 
 (o) Obligations of Guarantor. A default by Guarantor beyond any applicable notice and cure period under the Limited Recourse Guaranty executed by
Guarantor in favor of Lender. 
  

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 An Event of Default shall be deemed “continuing” until cured or waived in writing in accordance
with Section 11.4. 
 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 and remedies under the Loan Documents, Borrower’s copyrights, 

  

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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 to cover Permitted REIT Distributions. 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. 
 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 

  

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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 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. 
  

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 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. 
 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. 
  

 46 

 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. 
 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, 

  

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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.

 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 

  

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but one and the same instrument. This Agreement 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 $25,000 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 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 

  

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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. 
 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 

  

 50 

 
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 Intentionally Omitted. 
 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 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] 
  

 51 

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

							
	LENDER:	  	WELLS FARGO BANK, NATIONAL ASSOCIATION
				
		  	By:	 	 /s/ Irie Dadabhoy
	 	
		  	Name:	 	Irie Dadabhoy	 	
		  	Title:	 	Vice President	 	
		
		  	ADDRESS FOR NOTICE AND DELIVERY:
			
		  	Real Estate Group	 	
		  	Orange County	 	
		  	2030 Main Street, Suite 800	 	
		  	Irvine, CA 92614	 	
		  	Attn:	 	Irie Dadabhoy	 	
		  		 	Vice President	 	
		  	Tel:	 	(949) 251-4322	 	
		  	Fax:	 	(949) 851-9728	 	

 [Signatures Continue on Next Page] 

															
	BORROWER:	 	 KBSII MOUNTAIN VIEW, LLC,
 a Delaware
limited liability company
	 	
				
		 	By:	 	 KBSII REIT ACQUISITION III, LLC,
 a Delaware
limited liability company,

 its sole member
	 	
					
		 		 	By:	 	 KBS REIT PROPERTIES II, LLC,
 a Delaware
limited liability company,
 its sole member
	 	
						
		 		 		 	By:	 	 KBS LIMITED PARTNERSHIP II,
 a Delaware
limited partnership,
 its sole member
	 	
							
		 		 		 		 	By:	 	 KBS REAL ESTATE INVESTMENT
 TRUST II, INC.,

 a Maryland corporation,
 general partner
	 	
								
		 		 		 		 		 	By:	 	 /s/ Charles J. Schreiber, Jr.
	 	
		 		 		 		 		 		 	Charles J. Schreiber, Jr.	 	
		 		 		 		 		 		 	Chief Executive Officer	 	

  

			
	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:	  	
	Tel:	  	
	Fax:

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