Document:

EX-10.43

 Exhibit 10.43 

 
 FORM OF 

ADVISORY AGREEMENT 
 among 

KBS REAL ESTATE INVESTMENT TRUST III, INC., 

KBS LIMITED PARTNERSHIP III 
 and

 KBS CAPITAL ADVISORS LLC 

[    ], 2021 

 TABLE OF CONTENTS 
  

					
	 	  	Page	 
		
	 ARTICLE 1 - DEFINITIONS
	  	 	1	 
	 ARTICLE 2 - APPOINTMENT
	  	 	6	 
	 ARTICLE 3 - DUTIES OF THE ADVISOR
	  	 	6	 
	 3.01 Organizational and Offering Services
	  	 	6	 
	 3.02 Acquisition Services
	  	 	6	 
	 3.03 Asset Management Services
	  	 	7	 
	 3.04 Stockholder Services
	  	 	10	 
	 3.05 Other Services
	  	 	10	 
	 ARTICLE 4 - AUTHORITY OF ADVISOR
	  	 	10	 
	 4.01 General
	  	 	10	 
	 4.02 Powers of the Advisor
	  	 	10	 
	 4.03 Approval by the Board
	  	 	11	 
	 4.04 Modification or Revocation of Authority of Advisor
	  	 	11	 
	 ARTICLE 5 - BANK ACCOUNTS
	  	 	11	 
	 ARTICLE 6 - RECORDS AND FINANCIAL STATEMENTS
	  	 	11	 
	 ARTICLE 7 - LIMITATION ON ACTIVITIES
	  	 	12	 
	 ARTICLE 8 - MANAGEMENT FEE
	  	 	12	 
	 ARTICLE 9 - EXPENSES
	  	 	13	 
	 9.01 General
	  	 	13	 
	 9.02 Timing of and Limitations on Reimbursements
	  	 	15	 
	 ARTICLE 10 - VOTING AGREEMENT
	  	 	16	 
	ARTICLE 11 - RELATIONSHIP OF ADVISOR, COMPANY AND OPERATING PARTNERSHIP; OTHER ACTIVITIES OF THE ADVISOR	  	 	16	 
	 11.01 Relationship
	  	 	16	 
	 11.02 Time Commitment
	  	 	16	 
	 11.03 Investment Opportunities and Allocation
	  	 	17	 
	 ARTICLE 12 - THE KBS NAME
	  	 	17	 
	 ARTICLE 13 - TERM AND TERMINATION OF THE AGREEMENT
	  	 	17	 
	 13.01 Term
	  	 	17	 
	 13.02 Termination by Either Party
	  	 	18	 
	 13.03 Payments on Termination and Survival of Certain Rights and Obligations
	  	 	18	 
	 ARTICLE 14 - ASSIGNMENT
	  	 	18	 
	 ARTICLE 15 - INDEMNIFICATION AND LIMITATION OF LIABILITY
	  	 	19	 
	 15.01 Indemnification of the Advisor and its Affiliates
	  	 	19	 
	 15.02 Limitation on Indemnification of the Advisor and its Affiliates
	  	 	19	 
	 15.03 Limitation on Payment of Expenses of the Advisor and its Affiliates
	  	 	20	 
	 15.04 Indemnification of the Company and the Operating Partnership
	  	 	20	 
	 ARTICLE 16 - MISCELLANEOUS
	  	 	20	 
	 16.01 Notices
	  	 	20	 
	 16.02 Modification
	  	 	21	 
	 16.03 Severability
	  	 	21	 
	 16.04 Construction
	  	 	21	 
	 16.05 Entire Agreement
	  	 	21	 

  
 i 

					
	 16.06 Waiver
	  	 	21	 
	 16.07 Gender
	  	 	21	 
	 16.08 Titles Not to Affect Interpretation
	  	 	22	 
	 16.09 Counterparts
	  	 	22	 

  
 ii 

 ADVISORY AGREEMENT 

This Advisory Agreement, dated as of
[                    , 2021] (the “Agreement”), is by and among KBS Real Estate Investment Trust III, Inc., a Maryland
corporation (the “Company”), KBS Limited Partnership III, a Delaware limited partnership (the “Operating Partnership”) and KBS Capital Advisors LLC, a Delaware limited liability company (the
“Advisor”). Capitalized terms used herein shall have the meanings ascribed to them in Article 1 below. 
 W I T N E S S E T
H 
 WHEREAS, the Company is the general partner of the Operating Partnership and intends to conduct all of its business and
make all or substantially all of its investments in Properties, Loans and other Permitted Investments through the Operating Partnership; 

WHEREAS, the Company and the Operating Partnership desire to avail themselves of the knowledge, experience, sources of
information, advice, assistance and certain facilities available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Board, all as provided
herein; and 
 WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the
Board, on the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the foregoing and of the
mutual covenants and agreements contained herein, the parties hereto agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 The
following defined terms used in this Agreement shall have the meanings specified below: 
 “Acquisition
Expenses” means any and all expenses, excluding Acquisition Fees, incurred by the Company, the Operating Partnership, the Advisor or any of their Affiliates in connection with the selection, acquisition or development of any property, loan
or other potential investment, whether or not acquired or originated, as applicable, including, without limitation, legal fees and expenses, travel and communication expenses, costs of appraisals, nonrefundable option payments on properties or other
investments not acquired, accounting fees and expenses, title insurance premiums and miscellaneous expenses related to the selection, acquisition, origination or development of any property, loan or other potential investment. 

“Acquisition Fees” means any and all fees and commissions, excluding Acquisition Expenses, paid by any Person
to any Person in connection with making, originating or investing in any Property, Loan or other Permitted Investment or the purchase, development or construction of any Property by the Company or the Operating Partnership. Included in the
computation of such fees or commissions shall be any real estate commission, selection fee, 

  
 1 

 
Development Fee, Construction Fee, nonrecurring management fee, loan fees or points or any fee of a similar nature, however designated. Excluded shall be Development Fees and Construction Fees
paid to Persons not Affiliated with the Advisor in connection with the actual development and construction of a Property. 

“Advisor” means (i) KBS Capital Advisors LLC, a Delaware limited liability company, or (ii) any
successor advisor to the Company. 
 “Affiliate” or “Affiliated.” An Affiliate of another
Person includes any of the following: (i) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (ii) any Person directly or indirectly owning, controlling, or holding with the power
to vote 10% or more of the outstanding voting securities of such other Person; (iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any Person 10% or more of whose
outstanding voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such other Person; and (v) any executive officer, director, trustee, or general partner of such other Person. 

“Average Invested Assets” means, for a specified period, the average of the aggregate book value of the
assets of the Company invested, directly or indirectly, in Properties, Loans and other Permitted Investments secured by real estate before reserves for depreciation or bad debts or other similar non-cash
reserves, computed by taking the average of such values at the end of each month during such period. 
 “Board of
Directors” or “Board” means the board of directors of the Company, as of any particular time. 

“Bylaws” means the bylaws of the Company, as amended from time to time. 

“Charter” means the Articles of Incorporation of the Company under Title 2 of the Corporations and
Associations Article of the Annotated Code of Maryland, as amended and supplemented from time to time. 

“Class D Common Stock” shall have the meaning set forth in the Charter. 

“Class I Common Stock” shall have the meaning set forth in the Charter. 

“Class S Common Stock” shall have the meaning set forth in the Charter. 

“Class T Common Stock” shall have the meaning set forth in the Charter. 

“Class I Unit” shall have the meaning set forth in the Operating Partnership Agreement.

 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute
thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

 “Company” means KBS Real Estate Investment Trust III, Inc., a corporation organized under the laws of
the State of Maryland. 

  
 2 

 “Company Management Fee” shall have the meaning set forth
in Section 8.01. 
 “Conflicts Committee” shall have the meaning set forth in the Company’s
Charter. 
 “Construction Fee” means a fee or other remuneration for acting as general contractor and/or
construction manager to construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation on a Property. 

“Dealer Manager” means (i) KBS Capital Markets Group LLC, a Delaware limited liability company, or
(ii) any successor dealer manager to the Company. 
 “Development Fee” means a fee for the packaging
of a Property, including negotiating and approving plans, and undertaking to assist in obtaining zoning and necessary variances and necessary financing for the Property, either initially or at a later date. 

“Director” means a member of the Board of Directors of the Company. 

“Distribution Fees” shall have the meaning set forth in the Charter. 

“Distributions” means any distributions of money or other property by the Company to owners of Shares,
including distributions that may constitute a return of capital for federal income tax purposes. 
 “Excess
Amount” shall have the meaning set forth in Section 9.02(ii). 
 “Expense Year” shall have
the meaning set forth in Section 9.02(ii). 
 “GAAP” means accounting principles generally accepted in
the United States. 
 “Gross Proceeds” means the aggregate purchase price of all Shares sold for the
account of the Company through an Offering, without deduction for Organization and Offering Expenses. 
 “Joint
Venture” means any joint venture, limited liability company or other Affiliate of the Company that owns, in whole or in part, on behalf of the Company any Properties, Loans or other Permitted Investments. 

“Listing” shall have the meaning set forth in the Company’s Charter. 

“Loans” means mortgage loans and other types of debt financing investments made by the Company or the
Operating Partnership, either directly or indirectly, including through ownership interests in a Joint Venture or partnership, and including, without limitation, mezzanine loans, B-notes, bridge loans,
convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans. 

“Management Fee” shall have the meaning set forth in Section 8.01. 

“Management Fee Shares” shall have the meaning set forth in Section 8.03. 

  
 3 

 “NASAA Guidelines” means the NASAA Statement of Policy
Regarding Real Estate Investment Trusts as in effect on the date hereof. 
 “NAV” shall mean the net asset
value of the Company, the Operating Partnership, per Share or per Unit, as the context requires, calculated pursuant to the Valuation Guidelines. 

“Net Income” means, for any period, the total revenues applicable to such period, less the total expenses
applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating total allowable Operating
Expenses (as defined herein) shall exclude the gain from the sale of the Company’s assets. 

“Offering” means any offering of Shares that is registered with the SEC, excluding Shares offered under any
employee benefit plan. 
 “OP Management Fee” shall have the meaning set forth in Section 8.01. 

“Operating Expenses” means all costs and expenses incurred by the Company, as determined under GAAP, that in
any way are related to the operation of the Company or to Company business, including fees paid to the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting,
underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest payments,
(iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad loan reserves, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and
(vi) Acquisition Fees, Acquisition Expenses, real estate commissions on the resale of real property, and other expenses connected with the acquisition, origination, disposition, and ownership of real estate interests, loans or other property
(other than commissions on the sale of assets other than real property), such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property. 

“Operating Partnership” shall have the meaning set forth in the preamble of this Agreement. 

“Operating Partnership Agreement” shall mean the Limited Partnership Agreement of the Operating Partnership,
as amended from time to time. 
 “Organization and Offering Expenses” means all expenses incurred by or on
behalf of the Company in connection with or in preparing the Company for registration of and subsequently offering and distributing its Shares to the public, whether incurred before or after the date of this Agreement, which may include but are not
limited to, total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys); any expense allowance granted by the Company to the underwriter or any reimbursement of expenses of the underwriter by the
Company; expenses for printing, engraving and mailing; compensation of employees while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts; and expenses of qualification of the sale
of the securities under Federal and State laws, including taxes and fees, accountants’ and attorneys’ fees. 

  
 4 

 “Permitted Investments” means all investments (other than
Properties, Loans and short-term investments acquired for purposes of cash management) in which the Company or the Operating Partnership may acquire an interest, either directly or indirectly, including through ownership interests in a Joint Venture
or partnership, pursuant to the Charter, Bylaws and the investment objectives and policies adopted by the Board from time to time. 

“Person” means an individual, corporation, partnership, estate, trust (including a trust qualified under
Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of
Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange
Act of 1934, as amended. 
 “Property” or “Properties” means any real property or
properties transferred or conveyed to the Company or the Operating Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to a Joint Venture or partnership in which the Company is, directly or
indirectly, a co-venturer or partner. 
 “Property Manager” means an entity that has been retained to
perform and carry out at one or more of the Properties property-management services, excluding persons, entities or independent contractors retained or hired to perform facility management or other services or tasks at a particular Property, the
costs for which are passed through to and ultimately paid by the tenant at such Property. 
 “Registration
Statement” means a registration statement filed by the Company with the SEC, as amended from time to time, in connection with an Offering. 

“REIT” means a “real estate investment trust” under Sections 856 through 860 of the Code. 

“SEC” means the United States Securities and Exchange Commission. 

“Shares” means the shares of common stock of the Company of any class or series. 

“Stockholders” means the registered holders of the Shares. 

“Units” means the limited partnership units of the Operating Partnership of any class or series. 

“Valuation Guidelines” means the valuation guidelines adopted by the Board, as amended from time to time, for
determining the Company’s NAV, the Operating Partnership’s NAV, the NAV per Share for each class of Shares and the NAV per Unit for class of Units. 

“2%/25% Guidelines” means the requirement pursuant to the NASAA Guidelines that, in any period of four
consecutive fiscal quarters, total Operating Expenses not exceed the greater of 2% of the Company’s Average Invested Assets during such 12-month period or 25% of the Company’s Net Income over the
same 12-month period. 

  
 5 

 ARTICLE 2 

APPOINTMENT 
 The
Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor and asset manager on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 

ARTICLE 3 
 DUTIES OF THE ADVISOR

 The Advisor is responsible for managing, operating, directing and supervising the operations and administration of the
Company, the Operating Partnership and their assets. The Advisor undertakes to use its best efforts to present to the Company and the Operating Partnership potential investment opportunities and to provide the Company and the Operating Partnership
with a continuing and suitable investment program consistent with the investment objectives and policies of the Company and the Operating Partnership as determined and adopted from time to time by the Board. Subject to the limitations set forth in
this Agreement, including Article 4 hereof, and the continuing and exclusive authority of the Board over the management of the Company, the Advisor shall, either directly or by engaging an Affiliate or third party, perform the following duties: 

3.01 Organizational and Offering Services. The Advisor shall perform all services related to the organization of the
Company and the Operating Partnership or any Offering or private sale of the Company’s or the Operating Partnership’s securities, other than services that (i) are to be performed by the Dealer Manager, (ii) the Company or the
Operating Partnership elects to perform directly or (iii) would require the Advisor to register as a broker-dealer with the SEC or any state. 

3.02 Acquisition Services. 

(i) Serve as the Company’s and the Operating Partnership’s investment and financial advisor and
provide relevant market research and economic and statistical data in connection with the Company’s and the Operating Partnership’s assets and investment objectives and policies; 

(ii) Subject to Section 4 hereof and the investment objectives and policies of the Company and the
Operating Partnership: (a) locate, analyze and select potential investments; (b) structure and negotiate the terms and conditions of transactions pursuant to which investments in Properties, Loans and other Permitted Investments will be
made; (c) acquire, originate and dispose of Properties, Loans and other Permitted Investments on behalf of the Company and the Operating Partnership; (d) arrange for financing and refinancing and make other changes in the asset or capital
structure of investments in Properties, Loans and other Permitted Investments; and (e) enter into leases, service contracts and other agreements for Properties, Loans and other Permitted Investments; 

  
 6 

 (iii) Perform due diligence on prospective investments and
create due diligence reports summarizing the results of such work; 
 (iv) Prepare reports regarding
prospective investments that include recommendations and supporting documentation necessary for the Directors to evaluate the proposed investments; 

(v) Obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the
value of contemplated investments of the Company and the Operating Partnership; 
 (vi) Deliver to or
maintain on behalf of the Company and the Operating Partnership copies of all appraisals obtained in connection with the Company’s and the Operating Partnership’s investments; and 

(vii) Negotiate and execute approved investments and other transactions, including prepayments, maturities,
workouts and other settlements of Loans and other Permitted Investments. 
 3.03 Asset Management Services. 

(i) Real Estate and Related Services: 

(a) Investigate, select and, on behalf of the Company and the Operating Partnership, engage and conduct
business with (including enter contracts with) such Persons as the Advisor deems necessary to the proper performance of its obligations as set forth in this Agreement, including but not limited to consultants, accountants, lenders, technical
advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, developers, construction companies, Property Managers and any and all Persons acting in
any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services; 

(b) Negotiate and service the Company’s and the Operating Partnership’s debt facilities and other
financings; 
 (c) Monitor applicable markets and obtain reports (which may be prepared by the Advisor or
its Affiliates), where appropriate, concerning the value of investments of the Company and the Operating Partnership; 

(d) Monitor and evaluate the performance of each asset of the Company and the Operating Partnership and the
Company’s and the Operating Partnership’s overall portfolio of assets, provide daily management services to the Company and the Operating Partnership and perform and supervise the various management and operational functions related to the
Company’s investments; 

  
 7 

 (e) Formulate and oversee the implementation of strategies
for the administration, promotion, management, operation, maintenance, improvement, financing and refinancing, marketing, leasing and disposition of Properties, Loans and other Permitted Investments on an overall portfolio basis; 

(f) Consult with the Company’s officers and the Board and assist the Board in the formulation and
implementation of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and the
Operating Partnership and in connection with any borrowings proposed to be undertaken by the Company and the Operating Partnership; 

(g) Oversee the performance by the Property Managers of their duties, including collection and proper
deposits of rental payments and payment of Property expenses and maintenance; 
 (h) Conduct periodic on-site property visits to some or all (as the Advisor deems reasonably necessary) of the Properties to inspect the physical condition of the Properties and to evaluate the performance of the Property Managers; 

(i) Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and
submitted by each Property Manager and aggregate these property budgets into the Company’s and the Operating Partnership’s overall budget; 

(j) Coordinate and manage relationships among the Company and the Operating Partnership, on the one hand, and
any co-venturers or partners, on the other; and 
 (k) Consult with the Company’s officers and the
Board and provide assistance with the evaluation and approval of potential asset dispositions, sales and refinancings. 

(ii) Accounting and Other Administrative Services: 

(a) Provide the day-to-day
management of the Company and the Operating Partnership and perform and supervise the various administrative functions reasonably necessary for the management of the Company and the Operating Partnership; 

(b) From time to time, or at any time reasonably requested by the Board, make reports to the Board on the
Advisor’s performance of services to the Company under this Agreement; 
 (c) Make reports to the
Conflicts Committee each quarter of the investments that have been made by other programs sponsored by the Advisor or 

  
 8 

 
any of its Affiliates, including KBS Realty Advisors LLC, as well as any investments that have been made by the Advisor or any of its Affiliates directly; 

(d) Provide or arrange for any administrative services and items, legal and other services, office space,
office furnishings, personnel and other overhead items necessary and incidental to the Company’s and the Operating Partnership’s business and operations; 

(e) Provide financial and operational planning services; 

(f) Maintain accounting and other record-keeping functions at the Company, the Operating Partnership and
investment levels, including information concerning the activities of the Company and the Operating Partnership as shall be required to prepare and to file, as applicable, all periodic financial reports, tax returns and any other information
required to be filed with the SEC, the Internal Revenue Service and any other regulatory agency; 
 (g)
Maintain and preserve all appropriate books and records of the Company and the Operating Partnership; 

(h) Provide tax and compliance services and coordinate with appropriate third parties, including the
Company’s and the Operating Partnership’s independent auditors and other consultants, on related tax matters; 

(i) Provide the Company and the Operating Partnership with all necessary cash management services; 

(j) Manage and coordinate with the transfer agent the dividend process, redemption process and payments to
Stockholders and manage and coordinate the distribution process, redemption process and payments to the partners of the Operating Partnership; 

(k) Consult with the Company’s officers and the Board and assist the Board in evaluating and obtaining
adequate insurance coverage based upon risk management determinations; 
 (l) Provide the Company’s
officers and the Board with timely updates related to the overall regulatory environment affecting the Company and the Operating Partnership, as well as managing compliance with such matters, including but not limited to compliance with the
Sarbanes-Oxley Act of 2002; 
 (m) Consult with the Company’s officers and the Board relating to the
corporate governance structure and appropriate policies and procedures related thereto; 
 (n) Perform all
reporting, record keeping, internal controls and similar matters in a manner to allow the Company and the Operating Partnership to 

  
 9 

 
comply with applicable law, including federal and state securities laws and the Sarbanes-Oxley Act of 2002; 

(o) Notify the Board of all proposed material transactions before they are completed; 

(p) Assist with the calculation of the Company’s NAV, the Operating Partnership’s NAV, the NAV per
Share and the NAV per Unit in accordance with the Valuation Guidelines; 
 (q) Monitor the valuation firms
engaged pursuant to the Valuation Guidelines to ensure that each complies with the Valuation Guidelines; and 

(r) Do all things necessary to assure its ability to render the services described in this Agreement. 

3.04 Stockholder Services. 

(i) Manage services for and communications with Stockholders and partners of the Operating Partnership,
including answering phone calls, preparing and sending written and electronic reports and other communications; 

(ii) Oversee the performance of the transfer agent and registrar; 

(iii) Establish technology infrastructure to assist in providing Stockholder support and service and support
and service to partners of the Operating Partnership; and 
 (iv) Consistent with Section 3.01, the
Advisor shall perform the various subscription processing services reasonably necessary for the admission of new Stockholders and partners of the Operating Partnership. 

3.05 Other Services. Except as provided in Article 7, the Advisor shall perform any other services reasonably requested
by the Company (acting through the Conflicts Committee). 
 ARTICLE 4 

AUTHORITY OF ADVISOR 

4.01 General. All rights and powers to manage and control the day-to-day business and affairs of the Company shall be vested in the Advisor. The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the business and
affairs of the Company to such officers, employees, Affiliates, agents and representatives of the Advisor or the Company as it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on
the rights and powers of the Advisor specifically set forth in this Agreement or the Charter. 
 4.02 Powers of the
Advisor. Subject to the express limitations set forth in this Agreement and the continuing and exclusive authority of the Board over the management of the Company, the power to direct the management, operation and policies of the Company shall
be vested in 

  
 10 

 
the Advisor, which shall have the power by itself and shall be authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the
Company and to perform all acts and enter into and perform all contracts and other undertakings that it may in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement. 

4.03 Approval by the Board. Notwithstanding the foregoing, the Advisor may not take any action on behalf of the Company
without the prior approval of the Board or duly authorized committees thereof if the Charter or Maryland General Corporation Law require the prior approval of the Board. The Advisor will deliver to the Board all documents required by it to evaluate
a proposed investment (and any related financing) or disposition. 
 4.04 Modification or Revocation of Authority of
Advisor. The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or approvals set forth in Article 3 and this Article 4 hereof; provided, however, that such modification or revocation shall be
effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of such notification. 

ARTICLE 5 
 BANK ACCOUNTS 

The Advisor may establish and maintain one or more bank accounts in the name of the Company and the Operating Partnership and
any subsidiary thereof and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership, consistent with the Advisor’s authority under
this Agreement, provided that no funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render, upon request by the Board, its audit committee or the auditors of the Company, appropriate accountings of such
collections and payments to the Board, its audit committee and the auditors of the Company, as applicable. 
 ARTICLE 6 

RECORDS AND FINANCIAL STATEMENTS 

The Advisor, in the conduct of its responsibilities to the Company and the Operating Partnership, shall maintain adequate and
separate books and records for the Company’s and the Operating Partnership’s operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately
recorded. Such books and records shall be the property of the Company and the Operating Partnership, respectively, and shall be available for inspection by the Board and by counsel, auditors and other authorized agents of the Company, at any time or
from time to time during normal business hours. Such books and records shall include all information necessary to calculate and audit the fees or reimbursements paid under this Agreement. The Advisor shall utilize procedures to attempt to ensure
such control over accounting and financial transactions as is reasonably required to protect the Company’s and the Operating Partnership’s assets from theft, error or fraudulent activity. All financial statements that the Advisor delivers
to the 

  
 11 

 
Company and the Operating Partnership shall be prepared on an accrual basis in accordance with GAAP, except for special financial reports that by their nature require a deviation from GAAP. The
Advisor shall liaise with the Company’s and the Operating Partnership’s officers and independent auditors and shall provide such officers and auditors with the reports and other information that each so requests. 

ARTICLE 7 
 LIMITATION ON
ACTIVITIES 
 Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take any action that,
in its sole judgment made in good faith, would (i) adversely affect the ability of the Company to qualify or continue to qualify as a REIT under the Code, (ii) subject the Company or the Operating Partnership to regulation under the
Investment Company Act of 1940, as amended, (iii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, the Operating Partnership, the Company’s Shares or the
Company’s and the Operating Partnership’s other securities, (iv) require the Advisor to register as a broker-dealer with the SEC or any state, or (v) violate the Charter, Bylaws or Operating Partnership Agreement. In the event an
action that would violate (i) through (v) of the preceding sentence but such action has been ordered by the Board, the Advisor shall notify the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from
taking such action until it receives further clarification or instructions from the Board. Notwithstanding the foregoing, neither the Advisor nor any of its Affiliates shall be liable to the Company, the Operating Partnership, the Board, or the
Stockholders for any act or omission by the Advisor or any of its Affiliates, except as provided in Section 15.04 of this Agreement. 

ARTICLE 8 
 MANAGEMENT FEE 

8.01 The Company will pay the Advisor a management fee (the “Company Management Fee”) equal to 1.25% of the
NAV of the Company per annum payable monthly. The Operating Partnership will pay the Advisor a management fee (the “OP Management Fee” and, together with the Company Management Fee, the “Management Fee”) equal to
1.25% of the aggregate NAV of Units held by unitholders other than the Company and the Company’s wholly owned subsidiaries per annum payable monthly. For purposes of determining the Management Fee, the NAV of the Company and the NAV of the
Units will be calculated before giving effect to any accruals for the Management Fee, Distribution Fees, the Performance Allocation (as defined in the Operating Partnership Agreement) or any Distributions payable on Shares or distributions payable
on Units. The Advisor shall receive the Management Fees as compensation for services rendered hereunder. 
 8.02 The Company
Management Fee may be paid, at the Advisor’s election, in cash or cash equivalent aggregate NAV amounts of Class I Common Stock or Class I Units. The OP Management Fee may be paid, at the Advisor’s election, in cash or cash
equivalent aggregate NAV amounts of Class I Units. If the Advisor elects to receive any portion of its Management Fee in Class I Common Stock or Class I Units, the Advisor may elect to have the Company or

  
 12 

 
the Operating Partnership repurchase such Class I Common Stock or Class I Units from the Advisor at a later date (including any Class I Common Stock or Class I Units issued in
a dividend or distribution reinvestment plan or issued as a stock dividend related thereto). Such Class I Common Stock and Class I Units obtained by the Advisor as payment for the Management Fee will not be subject to the redemption limits
of the Company’s share redemption program or any reduction or penalty for an early redemption or otherwise. The Operating Partnership will repurchase any such Units for cash unless the Board determines that any such repurchase for cash would be
prohibited by applicable law, the Charter or the Operating Partnership Agreement, in which case such Units will be repurchased for the Company’s Class I Common Stock with an equivalent aggregate NAV, and the Advisor may elect to have the
Company repurchase such Class I Common Stock and such Class I Common Stock also will not be subject to the redemption limits of the Company’s share redemption program or any reduction or penalty for an early redemption or otherwise.
The Advisor will have the option of exchanging Class I Common Stock for an equivalent aggregate NAV amount of Class T Common Stock, Class S Common Stock or Class D Common Stock. 

8.03 With respect to any such Shares received as payment for the Management Fee (inclusive of Shares ultimately received in
exchange for Class I Units or Class I Common Stock pursuant to the provisions of Section 8.02) (collectively, the “Management Fee Shares”), within six months after a Listing of the Shares, the Advisor and the Company
covenant and agree to negotiate in good faith and enter into a registration rights agreement for the Management Fee Shares with terms mutually agreeable to the Company and the Advisor. Such registration rights agreement shall be in customary form
for agreements of this type entered into by REITs with institutional investors prior to an initial public offering and will provide for: (a) a long-form “demand” registration right exercisable once by the Advisor; (b)
“shelf” registration rights so long as Form S-3 is available to the Company; (c) “piggy-back” registration rights; and (d) in the event of “underwriters’ cut-backs” in relation to a demand registration, a shelf registration or any piggyback registration, the ability of the Company to reduce the number of Management Fee Shares to be registered on a pro rata basis
with other registering stockholders. 
 8.04 In the event this Agreement is terminated or its term expires without renewal,
the Advisor will be entitled to receive its prorated Management Fee through the date of termination. Such pro ration shall take into account the number of days of any partial calendar month or calendar year for which this Agreement was in effect.

 8.05 In the event the Company or the Operating Partnership commences a liquidation of its Properties, Loans and other
Permitted Investments during any calendar year, the Company and the Operating Partnership will pay the Advisor the Management Fee from the proceeds of the liquidation. 

ARTICLE 9 
 EXPENSES 

9.01 General. In addition to the Management Fee paid to the Advisor pursuant to Article 8 hereof, the Company or the
Operating Partnership shall pay directly or reimburse the Advisor or its Affiliates for all of the expenses paid or incurred by the Advisor or its Affiliates on behalf 

  
 13 

 
of the Company or the Operating Partnership or in connection with the services provided to the Company or the Operating Partnership pursuant to this Agreement, including, but not limited to: 

(i) Organization and Offering Expenses; provided that within 60 days after the end of the month in which a
primary or dividend reinvestment plan Offering terminates, the Advisor shall reimburse the Company to the extent the Company incurred Organization and Offering Expenses in the aggregate exceeding 15% of the Gross Proceeds raised in the applicable
completed Offering; 
 (ii) Acquisition Fees and Acquisition Expenses incurred in connection with the
selection, acquisition or origination of Properties, Loans and other Permitted Investments, including such expenses incurred related to assets pursued or considered but not ultimately acquired by the Company or the Operating Partnership, provided
that, notwithstanding anything herein to the contrary, the payment of Acquisition Fees and Acquisition Expenses by the Company shall be subject to the limitations contained in the Company’s Charter; 

(iii) The actual out-of-pocket
cost of goods and services used by the Company or the Operating Partnership and obtained from entities not Affiliated with the Advisor; 

(iv) Interest and other costs for borrowed money and financing transactions, including discounts, points and
other similar fees; 
 (v) Taxes and assessments on income or Properties, taxes as an expense of doing
business and any other taxes otherwise imposed on the Company, the Operating Partnership and their business, assets or income; 

(vi) Out-of-pocket costs
associated with insurance required in connection with the business of the Company, the Operating Partnership and by the officers and Directors of the Company; 

(vii) Expenses of managing, improving, developing, operating and selling Properties, Loans and other Permitted
Investments owned, directly or indirectly, by the Company or the Operating Partnership, as well as expenses of other transactions relating to such Properties, Loans and other Permitted Investments, including but not limited to prepayments,
maturities, workouts and other settlements of Loans and other Permitted Investments; 
 (viii) All out-of-pocket expenses in connection with payments to the Board and meetings of the Board and Stockholders; 

(ix) Personnel and related employment costs incurred by the Advisor or its Affiliates in performing the
services described in Article 3 hereof, including but not limited to reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services, provided that, (a) other than reimbursement of
travel and communication expenses, no reimbursement shall be made for the cost of such employees of the Advisor or its Affiliates to the extent that such employees perform services for which the Advisor receives Acquisition Fees or disposition fees,
to the extent 

  
 14 

 
such fees are paid to the Advisor or its Affiliates and (b) no reimbursement shall be made for the salaries and benefits the Advisor or its Affiliates may pay to the Company’s executive
officers; 
 (x)
Out-of-pocket expenses of providing services for and maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual
reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 

(xi) Audit, accounting and legal fees, and other fees for professional services relating to the operations of
the Company and the Operating Partnership and all such fees incurred at the request, or on behalf of, the Board, the Conflicts Committee, the audit committee of the Board or any other committee of the Board; 

(xii) Out-of-pocket costs for
the Company and the Operating Partnership to comply with all applicable laws, regulations and ordinances; 

(xiii) Expenses connected with payments of Distributions made or caused to be made by the Company to the
Stockholders and distributions made or caused to be made by the Operating Partnership to its partners; 

(xiv) Expenses of organizing, redomesticating, merging, liquidating or dissolving the Company and the
Operating Partnership or of amending the Charter, the Bylaws or the Operating Partnership Agreement; and 

(xv) All other out-of-pocket
costs incurred by the Advisor and its Affiliates in performing its duties hereunder. 
 9.02 Timing of and Additional
Limitations on Reimbursements. 
 (i) Expenses incurred by the Advisor or its Affiliates on behalf of the
Company or the Operating Partnership and reimbursable pursuant to this Article 9 shall be reimbursed no less than monthly to the Advisor or its Affiliates, as applicable. The Advisor shall prepare a statement documenting the expenses of the Company
and the Operating Partnership during each quarter and shall deliver such statement to the Company and the Operating Partnership within 45 days after the end of each quarter. 

(ii) The following limitation on Operating Expenses shall apply: The Company shall not reimburse the Advisor
at the end of any fiscal quarter for Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25%
of Net Income (the “2%/25% Guidelines”) for such year unless the Conflicts Committee determines that such excess was justified, based on unusual and nonrecurring factors that the Conflicts Committee deems sufficient. If the
Conflicts Committee does not approve such excess as being so justified, any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company. If the Conflicts Committee determines such excess was justified, then, within 60
days after the end of any fiscal quarter of the Company for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the 

  
 15 

 
Advisor, at the direction of the Conflicts Committee, shall cause such fact to be disclosed to the Stockholders in writing (or the Company shall disclose such fact to the Stockholders in the next
quarterly report of the Company or by filing a Current Report on Form 8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors the Conflicts Committee considered in
determining that such excess expenses were justified. The Company will ensure that such determination will be reflected in the minutes of the meetings of the Board. All figures used in the foregoing computation shall be determined in accordance with
GAAP applied on a consistent basis. 
 ARTICLE 10 

VOTING AGREEMENT 

The Advisor agrees that, with respect to any Shares now or hereinafter owned by it, the Advisor will not vote or consent on
matters submitted to the stockholders of the Company regarding (i) the removal of the Advisor, a director or any of their Affiliates or (ii) any transaction between the Company and the Advisor, a director or any of their Affiliates. This
voting restriction shall survive until such time that the Advisor is both no longer serving as such and is no longer an Affiliate of the Company. 

ARTICLE 11 
 RELATIONSHIP OF
ADVISOR, COMPANY AND OPERATING PARTNERSHIP; 
 OTHER ACTIVITIES OF THE ADVISOR 

11.01 Relationship. The Company and the Operating Partnership, on the one hand, and the Advisor, on the other, are not
partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers. Nothing herein contained shall prevent the Advisor from engaging in other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates. Nor shall this Agreement limit or restrict the right of any manager,
director, officer, employee or equityholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other Person. The Advisor may, with respect to any investment in which the Company or the Operating
Partnership is a participant, also render advice and service to each and every other participant therein. The Advisor shall promptly disclose to the Board the existence of any condition or circumstance, existing or anticipated, of which it has
knowledge, that creates or could create a conflict of interest between the Advisor’s obligations to the Company and the Operating Partnership and its obligations to or its interest in any other Person. 

11.02 Time Commitment. The Advisor shall, and shall cause its Affiliates and their respective employees, officers and
agents to, devote to the Company and the Operating Partnership such time as shall be reasonably necessary to conduct the business and affairs of the Company and the Operating Partnership in an appropriate manner consistent with the terms of this
Agreement. The Company and the Operating Partnership acknowledge that the Advisor and its Affiliates and their respective employees, officers and agents may also engage in activities unrelated to the Company and the Operating Partnership and may
provide services to Persons other than the Company, the Operating Partnership or any of their Affiliates. 

  
 16 

 11.03 Investment Opportunities and Allocation. The Advisor shall be
required to use commercially reasonable efforts to present a continuing and suitable investment program to the Company and the Operating Partnership that is consistent with the investment policies and objectives of the Company and the Operating
Partnership, but neither the Advisor nor any Affiliate of the Advisor shall be obligated generally to present any particular investment opportunity to the Company or the Operating Partnership even if the opportunity is of character that, if
presented to the Company or the Operating Partnership, could be taken by the Company or the Operating Partnership. In the event an investment opportunity is located, the allocation procedure set forth under the caption “Conflicts of Interest
– Certain Conflict Resolution Measures – Allocation of Investment Opportunities” in the most recently effective Registration Statement for the sale of the Company’s Shares, shall govern the allocation of the opportunity among the
Company and the Operating Partnership, on the one hand, and Affiliates of the Advisor, on the other. 
 ARTICLE 12 

THE KBS NAME 

The Advisor and its Affiliates have a proprietary interest in the name “KBS.” The Advisor hereby grants to the
Company and the Operating Partnership a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use
the name “KBS” during the term of this Agreement. Accordingly, and in recognition of this right, if at any time the Company and the Operating Partnership cease to retain the Advisor or one of its Affiliates to perform advisory services for
the Company and the Operating Partnership, the Company and the Operating Partnership will, promptly after receipt of written request from the Advisor, cease to conduct business under or use the name “KBS” or any derivative thereof and the
Company and the Operating Partnership shall change their names and the names of any of their subsidiaries to a name that does not contain the name “KBS” or any other word or words that might, in the reasonable discretion of the Advisor, be
susceptible of indication of some form of relationship among the Company and the Operating Partnership, on the one hand, and the Advisor or any its Affiliates, on the other. At such time, the Company and the Operating Partnership will also make any
changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “KBS.” Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and
may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having “KBS” as a part of their name, all without the
need for any consent (and without the right to object thereto) by the Company and the Operating Partnership. 
 ARTICLE 13 

TERM AND TERMINATION OF THE AGREEMENT 

13.01 Term. This Agreement shall have an initial term of one year from the date hereof and may be renewed for an
unlimited number of successive one-year terms upon mutual consent of the parties. The Company (acting through the Conflicts Committee) will evaluate the performance of the Advisor annually before renewing this
Agreement, and each such renewal 

  
 17 

 
shall be for a term of no more than one year. Any such renewal must be approved by the Conflicts Committee. 

13.02 Termination by Either Party. This Agreement may be terminated upon 60 days written notice without cause or
penalty by either the Company (acting through the Conflicts Committee) or the Advisor. The provisions of Articles 1, 10, 12, 13, 15 and 16 shall survive termination of this Agreement. 

13.03 Payments on Termination and Survival of Certain Rights and Obligations. Payments to the Advisor pursuant to this
Section 13.03 shall be subject to the 2%/25% Guidelines to the extent applicable. 
 (i) After the
termination or expiration of this Agreement, the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company or the Operating Partnership within 30 days after the effective
date of such termination or expiration all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination or expiration of this Agreement. 

(ii) The Advisor shall promptly upon termination or expiration: 

(a) pay over to the Company and the Operating Partnership all money collected pursuant to this Agreement, if
any, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 

(b) deliver to the Board a full accounting, including a statement showing all payments collected by it and a
statement of all money held by it, covering the period following the date of the last accounting furnished to the Board; 

(c) deliver to the Board all assets and documents of the Company and the Operating Partnership then in the
custody of the Advisor; and 
 (d) cooperate with the Company and the Operating Partnership to provide an
orderly transition of advisory functions. 
 ARTICLE 14 

ASSIGNMENT 
 This
Agreement may be assigned by the Advisor to an Affiliate with the consent of the Conflicts Committee. The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board or the
Conflicts Committee. This Agreement shall not be assigned by the Company or the Operating Partnership without the consent of the Advisor, except in the case of an assignment by the Company or the Operating Partnership to a corporation, partnership
or other organization that is a successor to all of the assets, rights and obligations of the Company or the Operating Partnership, as applicable, in which case such successor organization shall be bound hereunder and by the terms of said

  
 18 

 
assignment in the same manner as the Company and the Operating Partnership are bound by this Agreement. 

ARTICLE 15 
 INDEMNIFICATION AND
LIMITATION OF LIABILITY 
 15.01 Indemnification of the Advisor and its Affiliates. Except as prohibited by the
restrictions provided in this Section 15.01, Section 15.02 and Section 15.03 and subject to any limitations imposed by Maryland General Corporation Law and the Charter, the Company and the Operating Partnership shall indemnify, defend
and hold harmless the Advisor and its Affiliates, including their respective officers, directors, equity holders, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related
expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance. Any indemnification of the Advisor may be made only out of the net assets of the
Company and the Operating Partnership and not from Stockholders. 
 Notwithstanding the foregoing, the Company and the
Operating Partnership shall not indemnify the Advisor or its Affiliates for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party unless one or more of the following conditions
are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a
court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee and finds that indemnification of the settlement and the related
costs should be made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published position of any state securities regulatory authority in which securities of the Company and the
Operating Partnership were offered or sold as to indemnification for violations of securities laws. 
 15.02 Limitation
on Indemnification of the Advisor and its Affiliates. Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide for indemnification of the Advisor or its Affiliates for any liability or loss suffered by any of
them, nor shall any of them be held harmless for any loss or liability suffered by the Company and the Operating Partnership, unless all of the following conditions are met: 

(i)    The Advisor or its Affiliates have determined, in good faith, that the course of
conduct that caused the loss or liability was in the best interests of the Company and the Operating Partnership. 

(ii)    The Advisor or its Affiliates were acting on behalf of or performing services for
the Company or the Operating Partnership. 
 (iii)    Such liability or loss was not the
result of negligence or misconduct by the Advisor or its Affiliates. 

  
 19 

 15.03 Limitation on Payment of Expenses of the Advisor and its
Affiliates. The Company and the Operating Partnership shall pay or reimburse reasonable legal expenses and other costs incurred by the Advisor or its Affiliates in advance of the final disposition of a proceeding only if (in addition to the
procedures required by the Maryland General Corporation Law, as amended from time to time) all of the following are satisfied: (a) the proceeding relates to acts or omissions with respect to the performance of duties or services on behalf of
the Company or the Operating Partnership, (b) the legal proceeding was initiated by a third party who is not a Stockholder or, if by a Stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such
advancement and (c) the Advisor or its Affiliates undertake to repay the amount paid or reimbursed by the Company or the Operating Partnership, together with the applicable legal rate of interest thereon, if it is ultimately determined that the
particular indemnitee is not entitled to indemnification. 
 15.04 Indemnification of the Company and the Operating
Partnership. To the fullest and broadest extent permitted by law, the Advisor shall indemnify, defend and hold harmless the Company and the Operating Partnership from contract or other liability, claims, damages, taxes or losses and related
expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses (i) are not fully reimbursed by insurance and (ii) are incurred by reason of the Advisor’s bad faith,
fraud, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement; provided, however, that the Advisor shall not be held responsible for any action of the Board in following or declining to follow any advice or
recommendation given by the Advisor. 
 ARTICLE 16 

MISCELLANEOUS 

16.01 Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in
writing unless some other method of giving such notice, report or other communication is required by the Charter, the Bylaws or is accepted by the party to whom it is given, and shall be given by being delivered by hand, by overnight mail or other
overnight delivery service or by electronic mail to the addresses set forth herein: 
  

	
	 To the Company or the Board:

 

	             KBS Real
Estate Investment Trust III, Inc.

            800 Newport Center Drive, Suite
700

	             Newport
Beach, California 92660

	
            Attention:

	
            Email:

	  
 To the
Operating Partnership:
  

	     KBS Limited Partnership III

    800 Newport Center Drive, Suite 700

	     Newport Beach, California 92660

  
 20 

	
	
            Attention:

	             Email:

 

	 To the Advisor:

 

	     KBS Capital Advisors LLC

    800 Newport Center Drive, Suite 700

	     Newport Beach, California 92660

	     Attention:

	     Email:

 Any party may at any time give notice in writing to the other party of a change in its address
for the purposes of this Section 16.01. 
 16.02 Modification. This Agreement shall not be changed, modified,
terminated or discharged, in whole or in part, except by an instrument in writing signed by both parties hereto, or their respective successors or permitted assigns. 

16.03 Severability. The provisions of this Agreement are independent of and severable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 

16.04 Construction. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of
the State of Delaware. 
 16.05 Entire Agreement. This Agreement contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to
the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in
writing. 
 16.06 Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy,
power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or
privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it
is in writing and is signed by the party asserted to have granted such waiver. 
 16.07 Gender. Words used herein
regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 

  
 21 

 16.08 Titles Not to Affect Interpretation. The titles of Articles and
Sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 

16.09 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the signatories. 
 [The remainder of this page is intentionally left blank.

 Signature page follows.] 

  
 22 

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

															
	 KBS REAL ESTATE INVESTMENT TRUST III, INC.

			
	   
	 	 By:
	 	
                       
                                     

		 		 	 Charles J. Schreiber, Jr., Chief Executive Officer

	
	 KBS LIMITED PARTNERSHIP III

			
		 	 By:
	 	   KBS Real Estate Investment Trust III, Inc., as

  general partner

				
		 		 	   By:
	 	
                       
                                     

		 		 		 	 Charles J. Schreiber, Jr., Chief Executive Officer

	
	 KBS CAPITAL ADVISORS LLC

			
		 	 By:
	 	   PBren Investments, L.P., a Manager

				
		 		 	   By:
	 	   PBren Investments, LLC, as general partner

					
		 		 		 	 By:
	 	 PBCS Management, LLC, a Manager

						
		 		 		 		 	 By:
	 	  

		 		 		 		 		 	 Charles J. Schreiber, Jr., Manager

			
		 	 By:
	 	   Schreiber Real Estate Investments, L.P., a Manager

				
		 		 	   By:
	 	   Schreiber Investments, LLC, as general partner

					
		 		 		 	 By:
	 	 PBCS Management, LLC, a Manager

						
		 		 		 		 	 By:
	 	  

		 		 		 		 		 	 Charles J. Schreiber, Jr., Manager

  
 23EX-10.44

Table of Contents

 Exhibit 10.44 

 
 FORM OF 

AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT 

OF 
 KBS LIMITED
PARTNERSHIP III 
 A DELAWARE LIMITED PARTNERSHIP 

[                    ], 2021 

 

Table of Contents

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 Article 1 DEFINED TERMS
	  	 	1	 
		
	 1.1. Definitions
	  	 	1	 
	 1.2. Interpretation
	  	 	8	 
		
	 Article 2 PARTNERSHIP FORMATION AND IDENTIFICATION
	  	 	8	 
		
	 2.1. Formation
	  	 	8	 
	 2.2. Name, Office and Registered Agent
	  	 	8	 
	 2.3. Partners
	  	 	8	 
	 2.4. Term and Dissolution
	  	 	8	 
	 2.5. Filing of Certificate and Perfection of Limited
Partnership
	  	 	9	 
	 2.6. Certificates Representing Partnership Units
	  	 	9	 
		
	 Article 3 BUSINESS OF THE PARTNERSHIP
	  	 	9	 
		
	 Article 4 CAPITAL CONTRIBUTIONS AND ACCOUNTS
	  	 	10	 
		
	 4.1. Capital Contributions
	  	 	10	 
	 4.2. Classes of Partnership Units
	  	 	10	 
	 4.3. Additional Capital Contributions and Issuances of Additional Partnership
 Interests
	  	 	10	 
	 4.4. Additional Funding
	  	 	12	 
	 4.5. Capital Accounts
	  	 	12	 
	 4.6. Percentage Interests
	  	 	12	 
	 4.7. No Interest on Contributions
	  	 	12	 
	 4.8. Return of Capital Contributions
	  	 	12	 
	 4.9. No Third Party Beneficiary
	  	 	12	 
		
	 Article 5 PROFITS AND LOSSES; DISTRIBUTIONS
	  	 	13	 
		
	 5.1. Allocation of Profit and Loss
	  	 	13	 
	 5.2. Distribution of Cash
	  	 	15	 
	 5.3. REIT Distribution Requirements
	  	 	17	 
	 5.4. No Right to Distributions in Kind
	  	 	17	 
	 5.5. Limitations on Return of Capital Contributions
	  	 	17	 
	 5.6. Distributions Upon Liquidation
	  	 	17	 
	 5.7. Substantial Economic Effect
	  	 	18	 
	 5.8. Reinvestment
	  	 	18	 
		
	 Article 6 RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL
PARTNER
	  	 	19	 
		
	 6.1. Management of the Partnership
	  	 	19	 
	 6.2. Delegation of Authority
	  	 	21	 
	 6.3. Indemnification and Exculpation of Indemnitees
	  	 	21	 
	 6.4. Liability and Obligations of the General Partner
	  	 	22	 
	 6.5. Reimbursement of General Partner
	  	 	22	 
	 6.6. Outside Activities
	  	 	23	 
	 6.7. Transactions With Affiliates
	  	 	23	 
	 6.8. Title to Partnership Assets
	  	 	23	 
	 6.9. Repurchases and Exchanges of REIT Shares
	  	 	24	 
	 6.10. No Duplication of Fees or Expenses
	  	 	24	 
		
	 Article 7 CHANGES IN GENERAL PARTNER
	  	 	24	 
		
	 7.1. Transfer of the General Partner’s Partnership
Interest
	  	 	24	 
	 7.2. Admission of a Substitute or Additional General
Partner
	  	 	25	 
	 7.3. Effect of Bankruptcy, Withdrawal, Death or Dissolution of the sole
 remaining General Partner
	  	 	26	 

  
 i 

Table of Contents

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	 7.4. Removal of a General Partner
	  	 	26	 
		
	 Article 8 RIGHTS AND OBLIGATIONS OF THE LIMITED
PARTNERS
	  	 	27	 
		
	 8.1. Management of the Partnership
	  	 	27	 
	 8.2. Power of Attorney
	  	 	27	 
	 8.3. Limitation on Liability of Limited Partners
	  	 	27	 
	 8.4. Ownership by Limited Partner of Corporate General Partner or Affiliate

	  	 	27	 
	 8.5. Redemption Right
	  	 	27	 
	 8.6. Required Redemption of Limited Partners
	  	 	29	 
	 8.7. Registration of Common Stock
	  	 	30	 
		
	 Article 9 TRANSFERS OF LIMITED PARTNERSHIP INTERESTS
	  	 	30	 
		
	 9.1. Purchase for Investment
	  	 	30	 
	 9.2. Restrictions on Transfer of Limited Partnership
Interests
	  	 	30	 
	 9.3. Admission of Substitute Limited Partner
	  	 	31	 
	 9.4. Rights of Assignees of Partnership Interests
	  	 	32	 
	 9.5. Effect of Bankruptcy, Death, Incompetence or Termination of a Limited
 Partner
	  	 	32	 
	 9.6. Joint Ownership of Interests
	  	 	32	 
		
	 Article 10 BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS
	  	 	33	 
		
	 10.1. Books and Records
	  	 	33	 
	 10.2. Custody of Partnership Funds; Bank Accounts
	  	 	33	 
	 10.3. Fiscal and Taxable Year
	  	 	33	 
	 10.4. Annual Tax Information and Report
	  	 	33	 
	 10.5. Partnership Representative; Tax Elections; Special Basis Adjustments

	  	 	33	 
	 10.6. Reports to Limited Partners
	  	 	34	 
		
	 Article 11 AMENDMENT OF AGREEMENT; MERGER
	  	 	34	 
		
	 Article 12 GENERAL PROVISIONS
	  	 	35	 
		
	 12.1. Notices
	  	 	35	 
	 12.2. Survival of Rights
	  	 	35	 
	 12.3. Additional Documents
	  	 	35	 
	 12.4. Severability
	  	 	35	 
	 12.5. Entire Agreement
	  	 	35	 
	 12.6. Pronouns and Plurals
	  	 	35	 
	 12.7. Headings
	  	 	35	 
	 12.8. Counterparts
	  	 	35	 
	 12.9. Governing Law
	  	 	35	 

  

					
	EXHIBITS	  			
		
	EXHIBIT A - Notice of Exercise of Redemption Right	  	 	 

  

  
 ii 

Table of Contents

 AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT 

OF 
 KBS LIMITED
PARTNERSHIP III 
 This Amended and Restated Limited Partnership Agreement (this “Agreement”), dated as of
[                ], 2021, is entered into among KBS Real Estate Investment Trust III, Inc., a Maryland corporation, as general partner (the “General Partner”),
KBS REIT Holdings III LLC, a Delaware limited liability company, as a Limited Partner (the “Initial Limited Partner”),
[                    ] as the Special Limited Partner, and the Limited Partners party hereto from time to time. 

RECITALS: 
 WHEREAS, KBS Limited
Partnership III (the “Partnership”) was formed on January 5, 2010, as a limited partnership under the laws of the State of Delaware and a certificate of limited partnership was filed with the Secretary of State of the State of
Delaware (the “Certificate”). 
 WHEREAS, the Partnership is currently governed by the Limited Partnership Agreement dated as of January 5,
2010 (the “Prior Agreement”). 
 WHEREAS, the parties desire to amend and restate the Prior Agreement as fully set forth herein. 

NOW, THEREFORE, in consideration of the foregoing, of mutual covenants between the parties hereto, and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1

 DEFINED TERMS 
 
1.1. Definitions. The following defined terms used in this Agreement shall have the meanings specified below: 

“Act” means the Delaware Revised Uniform Limited Partnership Act, as it may be amended from time to time. 

“Additional Funds” has the meaning set forth in Section 4.4. 

“Additional Securities” means any additional REIT Shares (other than REIT Shares issued in connection with a redemption pursuant to
Section 8.5) or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT Shares, as set forth in Section 4.3(a)(iii). 

“Administrative Expenses” means (i) all administrative and operating costs and expenses incurred by the Partnership, (ii) those
administrative costs and expenses of the General Partner, including any salaries or other payments to directors, officers or employees of the General Partner, and any accounting and legal expenses of the General Partner, which expenses are expenses
of the Partnership and not the General Partner, and (iii) to the extent not included in clause (ii) above, REIT Expenses; provided, however, that Administrative Expenses shall not include any administrative costs and expenses
incurred by the General Partner that are attributable to assets that are not owned directly or indirectly by the Partnership. 
 “Adviser”
means the Person appointed, employed or contracted with by the General Partner and the Partnership and responsible for directing or performing the day-to-day business
affairs of the General Partner and the Partnership, including any Person to whom the Adviser subcontracts all or substantially all of such functions. 

“Advisory Agreement” means the agreement among the General Partner, the Partnership and the Adviser pursuant to which the Adviser will direct
or perform the day-to-day business affairs of the General Partner and the Partnership. 

  
 1 

Table of Contents

 “Affiliate” means, with respect to any Person, (i) any Person directly or indirectly
owning, controlling or holding with the power to vote 10% or more of the outstanding voting securities of such other Person; (ii) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled or
held, with the power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person, including any partnership in which such Person is a general partner;
(iv) any executive officer, director, trustee or general partner of such other Person; and (v) any legal entity for which such Person acts an executive officer, director, trustee or general partner. 

“Aggregate Stock Ownership Limit” shall have the meaning set forth in the Articles of Incorporation. 

“Agreed Value” means the fair market value of a Partner’s non-cash Capital Contribution as of
the date of contribution as agreed to by such Partner and the General Partner. The Agreed Value of any non-cash Capital Contributions by a Partner as of the date of contribution are set forth on the
Partnership’s books and records. 
 “Agreement” means this Limited Partnership Agreement, as amended, modified supplemented or
restated from time to time, as the context requires. 
 “Applicable Percentage” has the meaning provided in Section 8.5(b). 

“Articles of Incorporation” means the Second Articles of Amendment and Restatement of the General Partner filed with the Maryland State
Department of Assessments and Taxation on January 21, 2011, as further amended or supplemented from time to time. 
 “Capital Account”
has the meaning provided in Section 4.5. 
 “Capital Contribution” means the total amount of cash, cash equivalents or the Agreed
Value of any Property or other asset (other than cash or cash equivalents) contributed or agreed to be contributed, as the context requires, to the Partnership by each Partner pursuant to the terms of this Agreement. Any reference to the Capital
Contribution of a Partner shall include the Capital Contribution made by a predecessor holder of the Partnership Interest of such Partner. 

“Carrying Value” means, with respect to any asset of the Partnership, the asset’s adjusted net basis for federal income tax purposes or,
in the case of any asset contributed to the Partnership, the fair market value of such asset at the time of contribution, reduced by any amounts attributable to the inclusion of liabilities in basis pursuant to Section 752 of the Code, except
that the Carrying Values of all assets may, at the discretion of the General Partner, be adjusted to equal their respective fair market values (as determined by the General Partner), in accordance with the rules set forth in Regulations Section 1.704-1(b)(2)(iv)(f), as provided for in Section 4.5. In the case of any asset of the Partnership that has a Carrying Value that differs from its adjusted tax basis, the Carrying Value shall be
adjusted by the amount of depreciation, depletion and amortization calculated for purposes of the definition of Profit and Loss rather than the amount of depreciation, depletion and amortization determined for federal income tax purposes. 

“Cash Amount” means an amount of cash per Partnership Unit equal to the applicable Redemption Price determined by the General Partner. 

“Certificate” means any instrument or document that is required under the laws of the State of Delaware, or any other jurisdiction in which
the Partnership conducts business, to be signed and sworn to by any of the Partners of the Partnership (either by themselves or pursuant to the power-of-attorney granted
to the General Partner in Section 8.2) and filed for recording in the appropriate public offices within the State of Delaware or such other jurisdiction to perfect or maintain the Partnership as a limited partnership, to effect the admission,
withdrawal, or substitution of any Partner of the Partnership, or to protect the limited liability of the Limited Partners as limited partners under the laws of the State of Delaware or such other jurisdiction. 

“Class” means a class of REIT Shares or Partnership Units, as the context may require. 

“Class D Conversion Rate” means the fraction, the numerator of which is the Net Asset Value Per Unit for each Class D
Unit and the denominator of which is the Net Asset Value Per Unit for each Class I Unit. 

  
 2 

Table of Contents

 “Class D REIT Shares” means the Class of REIT Shares designated as
“Class D Common Stock” under the General Partner’s Articles of Incorporation. 
 “Class D Unit”
means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class D Unit as provided in this Agreement. 

“Class I REIT Shares” means the Class of REIT Shares designated as “Class I Common Stock” under the
General Partner’s Articles of Incorporation. 
 “Class I Unit” means a Partnership Unit entitling the holder
thereof to the rights of a holder of a Class I Unit as provided in this Agreement. 
 “Class S Conversion Rate”
means the fraction, the numerator of which is the Net Asset Value Per Unit for each Class S Unit and the denominator of which is the Net Asset Value Per Unit for each Class I Unit. 

“Class S REIT Shares” means the Class of REIT Shares designated as “Class S Common Stock” under the
General Partner’s Articles of Incorporation. 
 “Class S Unit” means a Partnership Unit entitling the holder
thereof to the rights of a holder of a Class S Unit as provided in this Agreement. 
 “Class T Conversion Rate”
means the fraction, the numerator of which is the Net Asset Value Per Unit for each Class T Unit and the denominator of which is the Net Asset Value Per Unit for each Class I Unit. 

“Class T REIT Shares” means the Class of REIT Shares designated as “Class T Common Stock” under the
General Partner’s Articles of Incorporation. 
 “Class T Unit” means a Partnership Unit entitling the holder
thereof to the rights of a holder of a Class T Unit as provided in this Agreement. 
 “Code” means the Internal Revenue Code of 1986,
as amended, and as hereafter amended from time to time. Reference to any particular provision of the Code shall mean that provision in the Code at the date hereof and any successor provision of the Code. 

“Commission” means the U.S. Securities and Exchange Commission. 

“Common Stock Ownership Limit” shall have the meaning set forth in the Articles of Incorporation. 

“Director” shall have the meaning set forth in the Articles of Incorporation. 

“DRIP” shall have the meaning set forth in Section 5.8. 

“DRIP Participant” shall have the meaning set forth in Section 5.8. 

“Event of Bankruptcy” as to any Person means the filing of a petition for relief as to such Person as debtor or bankrupt under the Bankruptcy
Code of 1978 or similar provision of law of any jurisdiction (except if such petition is contested by such Person and has been dismissed within 90 days); insolvency or bankruptcy of such Person as finally determined by a court proceeding; filing by
such Person of a petition or application to accomplish the same or for the appointment of a receiver or a trustee for such Person or a substantial part of his assets; commencement of any proceedings relating to such Person as a debtor under any
other reorganization, arrangement, insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or hereinafter in effect, either by such Person or by another, provided that if such proceeding is commenced by
another, such Person indicates his approval of such proceeding, consents thereto or acquiesces therein, or such proceeding is contested by such Person and has not been finally dismissed within 90 days. 

“Excepted Holder Limit” shall have the meaning set forth in the Articles of Incorporation. 

  
 3 

Table of Contents

 “General Partner” means KBS Real Estate Investment Trust III, Inc., a Maryland corporation,
and any Person who becomes a substitute or additional General Partner as provided herein, and any of their successors as General Partner, in such Person’s capacity as a General Partner of the Partnership. 

“General Partnership Interest” means any Partnership Interest held by the General Partner, other than any Partnership Interest it holds as a
Limited Partner. 
 “Hurdle Amount” for any period during a calendar year means that amount that results in a 6% annualized internal rate
of return on the Net Asset Value of the Partnership Units outstanding at the beginning of the then-current calendar year and all Partnership Units issued since the beginning of the then-current calendar year, taking into account the timing and
amount of all distributions accrued or paid (without duplication) on all such Partnership Units and all issuances of Partnership Units over the period and calculated in accordance with recognized industry practices. The ending Net Asset Value of the
Partnership Units used in calculating the internal rate of return will be calculated before giving effect to any allocation or accrual to the Performance Allocation and any applicable distribution fee expenses, provided that the calculation of the
Hurdle Amount for any period will exclude any Partnership Units repurchased during such period, which Partnership Units will be subject to the Performance Allocation upon such repurchase as described in Section 5.2(c). 

“Indemnitee” means (i) any Person made a party to a proceeding by reason of its status as the General Partner or a director, officer or
employee of the General Partner or the Partnership, (ii) the Adviser, (iii) the Special Limited Partner and (iv) such other Persons (including Affiliates of the General Partner or the Partnership) as the General Partner may designate
from time to time, in its sole and absolute discretion. 
 “Initial Limited Partner” means KBS REIT Holdings III LLC, a Delaware limited
liability company. 
 “Limited Partner” means the General Partner in its capacity as a Limited Partner, the Initial Limited Partner and any
other Person identified as a Limited Partner on the Partnership’s books and records, upon the execution and delivery by such Person of an additional limited partner signature page, and any Person who becomes a Substitute Limited Partner, in
such Person’s capacity as a Limited Partner in the Partnership. 
 “Limited Partnership Interest” means the ownership interest of a
Limited Partner in the Partnership at any particular time, including the right of such Limited Partner to any and all benefits to which such Limited Partner may be entitled as provided in this Agreement and in the Act, together with the obligations
of such Limited Partner to comply with all the provisions of this Agreement and of such Act. A Limited Partnership Interest may be expressed as a number of Partnership Units. 

“Listing” means the listing of the shares of the General Partner’s common stock on a national securities exchange. Upon such Listing,
the shares shall be deemed “Listed.” 
 “Loss” has the meaning provided in Section 5.1(e). 

“Loss Carryforward Amount” shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Total
Return and decrease by any positive annual Total Return, provided that the Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Loss Carryforward Amount will exclude the Total Return related to
any Partnership Units repurchased during such year, which Partnership Units will be subject to the Performance Allocation upon such repurchase as described in Section 5.2(c). 

“Minimum Liquidity Requirement” has the meaning provided in Section 8.5(a). 

“Multiple Class Plan” means a written plan adopted by the Board of Directors of the General Partner, as such plan may be
amended from time to time, that sets forth the method by which distributions among Classes of REIT Shares shall be determined relative to each other, and may set forth other terms of Classes of REIT Shares relative to each other. 

“Net Asset Value” means (i) for any Partnership Units, the net asset value of such Partnership Units, calculated pursuant to the
Valuation Guidelines and (ii) for any REIT Shares, the net asset value of such REIT Shares, calculated pursuant to the Valuation Guidelines. 

  
 4 

Table of Contents

 “Net Asset Value Per Unit” means, for each Class of Partnership Unit, the net asset
value per unit of such Class of Partnership Unit, calculated pursuant to the Valuation Guidelines. 
 “Net Asset Value Per REIT Share”
means, for each Class of REIT Shares, the net asset value per share of such Class of REIT Shares, calculated pursuant to the Valuation Guidelines. 

“Notice of Redemption” means the Notice of Exercise of Redemption Right substantially in the form attached as Exhibit A. 

“Offer” has the meaning set forth in Section 7.1(b). 

“Offering” means an offer and sale of REIT Shares in a public or private offering. 

“Partner” means any General Partner, Special Limited Partner or Limited Partner. 

“Partner Nonrecourse Debt Minimum Gain” means an amount with respect to each Partner’s nonrecourse debt (as defined in U.S. Treasury
Regulations Section 1.704-2(b)(4)) equal to the Partnership Minimum Gain that would result if such partner nonrecourse debt were treated as a nonrecourse liability (as defined in U.S. Treasury Regulations
Section 1.752-1(a)(2)) determined in accordance with U.S. Treasury Regulations Section 1.704-2(i)(3). 

“Partnership” means KBS Limited Partnership III, a Delaware limited partnership. 

“Partnership Interest” means an ownership interest in the Partnership held by a Limited Partner, the General Partner or the Special Limited
Partner and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. 

“Partnership Minimum Gain” has the meaning specified in U.S. Treasury Regulations Sections
1.704-2(b)(2) and 1.704-2(d). 
 “Partnership Record Date”
means the record date established by the General Partner for the distribution of cash pursuant to Section 5.2, which record date shall be the same as the record date established by the General Partner for a distribution to its stockholders of
some or all of its portion of such distribution. 
 “Partnership Representative” has the meaning described in Section 10.5(a). 

“Partnership Unit” means a fractional, undivided share of the Partnership Interests (other than the Special Limited Partnership Interest) of
all Partners issued hereunder, including Class T Units, Class S Units, Class D Units and Class I Units. The allocation of Partnership Units of each Class among the Partners shall be as set forth on the Partnership’s
books and records. 
 “Percentage Interest” means the percentage ownership interest in the Partnership of each Partner, as determined by
dividing the Partnership Units owned by a Partner by the total number of Partnership Units then outstanding. The Percentage Interest of each Partner shall be as set forth on the Partnership’s books and records. 

“Performance Allocation” has the meaning set forth in Section 5.2(c). 

“Performance Units” has the meaning provided in Section 8.5(a). 

“Person” means an individual, corporation, partnership, limited liability company, estate, trust (including a trust qualified under Sections
401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of
the Code, joint stock company or other legal entity. 
 “Prior Agreement” has the meaning set forth in the recitals hereof. 

“Profit” has the meaning provided in Section 5.1(e) hereof. 

  
 5 

Table of Contents

 “Property” means any Real Property, Real Estate Securities, mortgage loan or other type of
debt financing investment or other investment in which the Partnership holds an ownership interest. 
 “Real Estate Securities” means
equity and debt securities of both publicly traded and private companies, including REITs and pass-through entities, that own Real Property or loans secured by real estate, including investments in commercial mortgage-backed securities and
derivative instruments, owned by the General Partner or the Partnership directly or indirectly through one or more of its Affiliates. 
 “Real
Property” means land, rights in land (including leasehold interests) and any buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land. 

“Redemption Price” means the Value of the REIT Shares Amount as of the end of the Specified Redemption Date. “Value” means, for any
Class of REIT Shares: (i) if such Class of REIT Shares are Listed, the average closing price per share for the previous 30 trading days, or (ii) if such Class of REIT Shares are not Listed, the Net Asset Value Per REIT Share
for REIT Shares of that Class. 
 “Redemption” has the meaning provided in Section 8.5(a). 

“Redemption Period” has the meaning provided in Section 8.5(a). 

“Redemption Requirements” has the meaning provided in Section 8.5(a). 

“Redemption Right” has the meaning provided in Section 8.5(a). 

“Redemption Shares” has the meaning provided in Section 8.7. 

“Regulations” means the Federal income tax regulations promulgated under the Code, as amended and as hereafter amended from time to time.
Reference to any particular provision of the Regulations shall mean that provision of the Regulations on the date hereof and any successor provision of the Regulations. 

“Regulatory Allocations” has the meaning set forth in Section 5.1(g). 

“REIT” means a corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in
investing in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both as defined pursuant to Sections 856 through 860 of the Code and any successor or other provisions of the Code
relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder. 

“REIT Expenses” means (i) costs and expenses relating to the formation and continuity of existence and operation of the General Partner
and any Subsidiaries thereof (which Subsidiaries shall, for purposes of this defined term, be included within the definition of General Partner), including taxes, fees and assessments associated therewith, any and all costs, expenses or fees payable
to any director, officer, or employee of the General Partner or service providers to the General Partner (including service providers affiliated with the Adviser), (ii) costs and expenses relating to any offering, issuance or registration of
securities by the General Partner and all filings, statements, reports, fees and expenses incidental thereto, including, without limitation, underwriting discounts and selling commissions applicable to any such offering of securities, any
distribution fees, and any costs and expenses associated with any claims made by any holders of such securities or any underwriters or placement agents thereof, (iii) costs and expenses associated with any repurchase or redemption of any
securities by the General Partner, (iv) costs and expenses associated with the preparation and filing of any periodic or other reports and communications by the General Partner under federal, state or local laws or regulations, including
filings with the Commission, (v) costs and expenses associated with compliance by the General Partner with laws, rules and regulations promulgated by any regulatory body, including the Commission and any securities exchange, (vi) the
management fee payable to the Adviser under the Advisory Agreement and other fees and expenses payable to other services providers of the General Partner, (vii) costs and expenses incurred by the General Partner relating to any issuance,
offering, repurchase or redemption of Partnership Interests, and (viii) all other operating or administrative costs of the General Partner incurred in the ordinary course of its business on behalf of or in connection with the Partnership. 

  
 6 

Table of Contents

 “REIT Share” means a share of common stock of the General Partner (or successor entity, as
the case may be), including Class T REIT Shares, Class S REIT Shares, Class D REIT Shares and Class I REIT Shares. 
 “REIT
Shares Amount” means a number of REIT Shares having the same Class designation as the Class of Partnership Units offered for exchange by a Tendering Party equal to such number of Partnership Units; provided that in the event the
General Partner issues to all holders of REIT Shares rights, options, warrants or convertible or exchangeable securities entitling the stockholders to subscribe for or purchase REIT Shares, or any other securities or property (collectively, the
“rights”), and the rights have not expired at the Specified Redemption Date, then the REIT Shares Amount shall also include the rights issuable to a holder of the REIT Shares Amount of REIT Shares on the record date fixed for purposes of
determining the holders of REIT Shares entitled to rights. 
 “Related Party” means, with respect to any Person, any other Person whose
ownership of shares of the General Partner’s capital stock would be attributed to the first such Person under Code Section 544 (as modified by Code Section 856(h)(1)(B)). 

“Restriction Notice” has the meaning provided in Section 8.5(e). 

“Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision
of the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 

“Service” means the United States Internal Revenue Service. 

“Share Redemption Program” means the General Partner’s share redemption program, as amended from time to time. 

“Special Limited Partner” means
[                                    ], [a Delaware limited liability
company], which shall be a limited partner of the Partnership and recognized as such under applicable Delaware law, but not a “Limited Partner” within the meaning of this Agreement (other than to the extent it owns Partnership Units). 

“Special Limited Partnership Interest” means the interest of the Special Limited Partner in the Partnership representing solely its right as
the holder of an interest in distributions described in Section 5.2(c) (and any corresponding allocations of income, gain, loss and deduction under this Agreement), and not any interest in Partnership Units it may own from time to time. 

“Specified Redemption Date” means the first business day of the month following the month of the day that is 45 days after the receipt by the
General Partner of the Notice of Redemption. 
 “Subsidiary” means, with respect to any Person, any corporation or other entity of which a
majority of (i) the voting power of the voting equity securities or (ii) the outstanding equity interests is owned, directly or indirectly, by such Person. 

“Substitute Limited Partner” means any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.3. 

“Survivor” has the meaning set forth in Section 7.1(c). 

“Tendered Units” has the meaning provided in Section 8.5(a). 

“Tendering Party” has the meaning provided in Section 8.5(a). 

“Total Return” for any period since the end of the prior calendar year shall equal the sum of: (i) all distributions accrued or paid
(without duplication) on the Partnership Units outstanding at the end of such period since the beginning of the then-current calendar year plus (ii) the change in aggregate Net Asset Value of such Partnership Units since the beginning of
such year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Partnership Units, (y) any allocation or accrual to the Performance Allocation and (z) any applicable distribution fee expenses
(including any payments made to the General Partner for payment of such expenses). For 

  
 7 

Table of Contents

 
the avoidance of doubt, the calculation of Total Return will (i) include any appreciation or depreciation in the Net Asset Value of Partnership Units issued during the then-current calendar
year but (ii) exclude the proceeds from the initial issuance of such Partnership Units.                 

“Transaction” has the meaning set forth in Section 7.1(b). 

“Transfer” has the meaning set forth in Section 9.2(a). 

“Valuation Guidelines” means the valuation guidelines adopted by the Board of Directors of the General Partner, as amended from time to time,
for determining the General Partner’s net asset value, the Partnership’s net asset value, the net asset value per share for each Class of REIT Shares and the net asset value per unit for each Class of Partnership Units. 

1.2. Interpretation. The definitions in Section 1.1 shall apply equally to both the singular and
plural forms of the terms defined. Wherever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine and neuter forms. For all purposes of this Agreement, the term “control” and
variations thereof shall mean possession of the authority to direct or cause the direction of the management and policies of the specified entity, through the direct or indirect ownership of equity interests therein, by contract or otherwise. As
used in this Agreement, the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” As used in this Agreement, the terms “herein,”
“hereof” and “hereunder” shall refer to this Agreement in its entirety. Any references in this Agreement to “Sections” or “Articles” shall, unless otherwise specified, refer to Sections or Articles,
respectively, in this Agreement. Any references in this Agreement to an “Exhibit” shall, unless otherwise specified, refer to an Exhibit attached to this Agreement, as such Exhibit may be amended from time to time. Each such Exhibit shall
be deemed incorporated in this Agreement in full. 
 ARTICLE 2 

PARTNERSHIP FORMATION AND IDENTIFICATION 

2.1. Formation. The Partnership was formed as a limited partnership pursuant to the Act and all other
pertinent laws of the State of Delaware, for the purposes and upon the terms and conditions set forth in this Agreement. 

2.2. Name, Office and Registered Agent. The name of the Partnership is KBS Limited Partnership III. The
specified office and principal place of business of the Partnership shall be 800 Newport Center Drive, Suite 700, Newport Beach, California 92660. The General Partner may at any time change the location of such office, provided the General Partner
gives notice to the Partners of any such change. The name and address of the Partnership’s registered agent is Registered Agent Solutions, Inc., 9 E. Loockerman Street, Suite 311, Dover, Delaware. The sole duty of the registered agent as such
is to forward to the Partnership any notice that is served on him as registered agent. 
 2.3.
Partners. 
 (a) The General Partner of the Partnership is KBS Real Estate Investment Trust III, Inc., a Maryland
corporation. Its principal place of business is the same as that of the Partnership. 
 (b) The Limited Partners are KBS REIT Holdings III,
LLC, a Delaware limited liability company and the Initial Limited Partner, and any other Persons identified as Limited Partners on the Partnership’s books and records. 

(c) The Special Limited Partner is
[                                ], [a Delaware limited liability company]. Its principal
place of business is the same as that of the Partnership. 
 2.4. Term and Dissolution. 

(a) The Partnership commenced upon the filing for record of the Certificate in the office of the Secretary of State of the State of Delaware
on January 5, 2010, and shall continue indefinitely, except that the Partnership shall be dissolved upon the first to occur of any of the following events: 

  
 8 

Table of Contents

 (i) The occurrence of an Event of Bankruptcy as to a General Partner or the dissolution, death, removal or
withdrawal of a General Partner unless the business of the Partnership is continued pursuant to Section 7.3(b); provided that if a General Partner is on the date of such occurrence a partnership, the dissolution of such General Partner as a
result of the dissolution, death, withdrawal, removal or Event of Bankruptcy of a partner in such partnership shall not be an event of dissolution of the Partnership if the business of such General Partner is continued by the remaining partner or
partners, either alone or with additional partners, and such General Partner and such partners comply with any other applicable requirements of this Agreement; 

(ii) The passage of 90 days after the sale or other disposition of all or substantially all of the assets of the Partnership (provided that if the Partnership
receives an installment obligation as consideration for such sale or other disposition, the Partnership shall continue, unless sooner dissolved under the provisions of this Agreement, until such time as such note or notes are paid in full); or 

(iii) The election by the General Partner that the Partnership should be dissolved. 

(b) Upon dissolution of the Partnership (unless the business of the Partnership is continued pursuant to Section 7.3(b)), the General
Partner (or its trustee, receiver, successor or legal representative) shall amend or cancel any Certificate(s) and liquidate the Partnership’s assets and apply and distribute the proceeds thereof in accordance with Section 5.6.
Notwithstanding the foregoing, the liquidating General Partner may either (i) defer liquidation of, or withhold from distribution for a reasonable time, any assets of the Partnership (including those necessary to satisfy the Partnership’s
debts and obligations), or (ii) distribute the assets to the Partners in kind. 
 2.5. Filing of
Certificate and Perfection of Limited Partnership. The General Partner shall execute, acknowledge, record and file at the expense of the Partnership, any and all amendments to the Certificate(s) and all requisite fictitious name statements
and notices in such places and jurisdictions as may be necessary to cause the Partnership to be treated as a limited partnership under, and otherwise to comply with, the laws of each state or other jurisdiction in which the Partnership conducts
business. 
 2.6. Certificates Representing Partnership Units. At the request of a Limited Partner,
the General Partner, at its option, may issue (but in no way is obligated to issue) a certificate specifying the number and Class of Partnership Units owned by the Limited Partner as of the date of such certificate. Any such certificate
(i) shall be in form and substance as approved by the General Partner, (ii) shall not be negotiable and (iii) shall bear a legend to the following effect: 

This certificate is not negotiable. The Partnership Units represented by this certificate are governed by and transferable only in accordance with the
provisions of the Limited Partnership Agreement of KBS Limited Partnership III, as amended from time to time. 
 
ARTICLE 3 
 BUSINESS OF THE PARTNERSHIP 

The purpose and nature of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited
partnership organized pursuant to the Act, provided, however, that such business shall be limited to and conducted in such a manner as to permit the General Partner at all times to qualify as a REIT, and in a manner such that the General Partner
will not be subject to any taxes under Section 857 or 4981 of the Code (to the extent the General Partner determines not being subject to such taxes is desirable), unless the General Partner otherwise ceases to qualify as a REIT, (ii) to
enter into any partnership, joint venture or other similar arrangement to engage in any of the foregoing or the ownership of interests in any entity engaged in any of the foregoing and (iii) to do anything necessary or incidental to the
foregoing. In connection with the foregoing, and without limiting the General Partner’s right in its sole and absolute discretion to cease qualifying as a REIT, the Partners acknowledge that the General Partner’s status as a REIT and the
avoidance of income and excise taxes on the General Partner will inure to the benefit of all of the Partners and not solely to the General Partner. Notwithstanding the foregoing, the Limited Partners agree that the General Partner may terminate its
status as a REIT under the Code at any time to the full extent permitted under the Articles of Incorporation. The General Partner on behalf of the Partnership shall also be empowered to do any and all acts and things necessary or prudent to ensure
that the Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Code. 

  
 9 

Table of Contents

 ARTICLE 4 

CAPITAL CONTRIBUTIONS AND ACCOUNTS 

4.1. Capital Contributions. The General Partner and the Limited Partners have made capital
contributions to the Partnership in exchange for the Partnership Interests set forth opposite their names on the Partnership’s books and records. The General Partner may keep the Partnership’s books and records current through separate
revisions that reflect periodic changes to the capital contributions made by the Partners and redemptions and other purchases of Partnership Units by the Partnership, and corresponding changes to the Partnership Interests of the Partners, without
preparing an amendment to this Agreement. 
 4.2. Classes of Partnership Units. The General Partner
is hereby authorized to cause the Partnership to issue Partnership Units designated as Class T Units, Class S Units, Class D Units and Class I Units. Each such Class shall have the rights and obligations attributed to that
Class under this Agreement. 
 4.3. Additional Capital Contributions and Issuances of Additional
Partnership Interests. Except as provided in this Section 4.3 or in Section 4.4, the Partners shall have no right or obligation to make any additional Capital Contributions or loans to the Partnership. The General Partner or the
Initial Limited Partner may contribute additional capital to the Partnership, from time to time, and receive additional Partnership Interests in respect thereof, in the manner contemplated in this Section 4.3. 

(a) Issuances of Additional Partnership Interests. 

(i) General. The General Partner is hereby authorized to cause the Partnership to issue such additional Partnership Interests in the form of
Partnership Units for any Partnership purpose at any time or from time to time to the Partners (including the General Partner) or to other Persons for such consideration and on such terms and conditions as shall be established by the General Partner
in its sole and absolute discretion, all without the approval of any Limited Partners, including but not limited to, Partnership Units issued in connection with the issuance of REIT Shares of or other interests in the General Partner, Partnership
Units issued to the Special Limited Partner with respect to payments made pursuant to the Performance Allocation, Partnership Units issued to the Adviser as a management fee pursuant to the Advisory Agreement and Partnership. Units issued in
connection with acquisitions of properties. Any additional Partnership Interests issued thereby may be issued in one or more classes (including the Classes specified in this Agreement or any other Classes), or one or more series of any of such
classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior to Limited Partnership Interests, all as shall be determined by the General
Partner in its sole and absolute discretion and without the approval of any Limited Partner, subject to Delaware law, including, without limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each
such class or series of Partnership Interests; (ii) the right of each such class or series of Partnership Interests to share in Partnership distributions; and (iii) the rights of each such class or series of Partnership Interests upon
dissolution and liquidation of the Partnership; provided, however, that no additional Partnership Interests shall be issued to the General Partner or the Initial Limited Partner unless: 

(1) the additional Partnership Interests are issued to the General Partner or the Initial Limited Partner in connection with an issuance of Additional
Securities by the General Partner in accordance with Section 4.3(a)(iii); 
 (2) the additional Partnership Interests are issued to the General Partner
or the Initial Limited Partner in exchange for property owned by the General Partner with a fair market value, as determined by the General Partner, in good faith, equal to the value of the Partnership Interests; or 

(3) the additional Partnership Interests are issued to all Partners holding Partnership Units in proportion to their respective Percentage Interests. 

Without limiting the foregoing, the General Partner is expressly authorized to cause the Partnership to issue Partnership Units for less than fair market
value, so long as the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the Partnership. 

  
 10 

Table of Contents

 (ii) Adjustment Events. In the event the General Partner (i) declares or pays a dividend
on any Class of its outstanding REIT Shares in REIT Shares or makes a distribution to all holders of any Class of its outstanding REIT Shares in REIT Shares, (ii) subdivides any Class of its outstanding REIT Shares, or
(iii) combines any Class of its outstanding REIT Shares into a smaller number of REIT Shares with respect to any Class of REIT Shares, then a corresponding adjustment to the number of outstanding Partnership Units of the applicable
Class necessary to maintain the proportionate relationship between the number of outstanding Partnership Units of such Class to the number of outstanding REIT Shares of such Class shall automatically be made. Additionally, in the
event that any other entity shall become General Partner pursuant to any merger, consolidation or combination of the General Partner with or into another entity (the “Successor Entity”), the number of outstanding Partnership Units of each
Class shall be adjusted by multiplying such number by the number of shares of the Successor Entity into which one REIT Share of such Class is converted pursuant to such merger, consolidation or combination, determined as of the date of
such merger, consolidation or combination. Any adjustment to the number of outstanding Partnership Units of any Class shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such
event; provided, however, that if the General Partner receives a Notice of Redemption after the record date, but prior to the effective date of such dividend, distribution, subdivision or combination, or such merger, consolidation or combination,
the number of outstanding Partnership Units of any Class shall be determined as if the General Partner had received the Notice of Redemption immediately prior to the record date for such dividend, distribution, subdivision or combination or
such merger, consolidation or combination. If the General Partner takes any other action affecting the REIT Shares other than actions specifically described above and, in the opinion of the General Partner such action would require an adjustment to
the number of Partnership Units to maintain the proportionate relationship between the number of outstanding Partnership Units to the number of outstanding REIT Shares, the General Partner shall have the right to make such adjustment to the number
of Partnership Units, to the extent permitted by law, in such manner and at such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. 

(iii) Upon Issuance of Additional Securities. Upon the issuance by the General Partner of any Additional Securities (including pursuant
to the General Partner’s dividend reinvestment plan) other than to all holders of REIT Shares, the General Partner shall contribute any net proceeds from the issuance of such Additional Securities and from any exercise of rights contained in
such Additional Securities, directly through the General Partner or indirectly through the Initial Limited Partner, to the Partnership in return for, as the General Partner may designate, Partnership Interests or rights, options, warrants or
convertible or exchangeable securities of the Partnership having designations, preferences and other rights such that their economic interests are substantially similar to those of the Additional Securities; provided, however, that the
General Partner is allowed to issue Additional Securities in connection with an acquisition of assets that would not be owned directly or indirectly by the Partnership, but if and only if, such acquisition and issuance of Additional Securities have
been approved and determined to be in or not opposed to the best interests of the General Partner and the Partnership; provided further, that the General Partner is allowed to use net proceeds from the issuance and sale of such Additional
Securities to repurchase REIT Shares pursuant to a Share Redemption Program or tender offer. Without limiting the foregoing, the General Partner is expressly authorized to issue Additional Securities for less than fair market value, and to cause the
Partnership to issue to the General Partner or Initial Limited Partner corresponding Partnership Interests, so long as the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the
Partnership. Without limiting the foregoing, if the General Partner issues REIT Shares of any Class for a cash purchase price and contributes all of the net proceeds of such issuance to the Partnership either directly or through the Initial
Limited Partner as required hereunder, the General Partner or the Initial Limited Partner, as the case may be, shall be issued a number of additional Partnership Units having the same Class designation as the issued REIT Shares equal to the
number of such REIT Shares of that Class issued by the General Partner the proceeds of which were so contributed. 
 (b) Certain
Deemed Contributions of Proceeds of Issuance of REIT Shares. In connection with any and all issuances of REIT Shares, to the extent that the General Partner shall make Capital Contributions to the Partnership of the proceeds therefrom
whether directly or through the Initial Limited Partner, if the proceeds actually received and contributed by the General Partner directly or through the Initial Limited Partner in respect of the REIT Shares the proceeds of which were so contributed
are less than the gross proceeds of such issuance as a result of any underwriter’s discount or other expenses paid or incurred in connection with such issuance, then the General Partner or the Initial Limited Partner, as the case may be, shall
be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the gross proceeds of such issuance and the Partnership shall be deemed simultaneously to have paid such offering expenses in accordance with Section 6.5
and in connection with the 

  
 11 

Table of Contents

 
required issuance of additional Partnership Units to the General Partner for such Capital Contributions pursuant to Section 4.3(a). In connection with any and all issuances of REIT Shares
pursuant to the General Partner’s dividend reinvestment plan, the General Partner or the Initial Limited Partner, as the case may be, shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the
distributions that have been reinvested in respect of the REIT Shares issued by the General Partner in return for an equal number of Partnership Units having the same Class designation as the issued REIT Shares. 

4.4. Additional Funding. If the General Partner determines that it is in the best interests of the
Partnership to provide for additional Partnership funds (“Additional Funds”) for any Partnership purpose, the General Partner may (i) cause the Partnership to obtain such funds from outside borrowings, (ii) elect to have the
General Partner or any of its Affiliates provide such Additional Funds to the Partnership through loans, the purchase of additional Partnership Interests or otherwise (which the General Partner or such Affiliates will have the option, but not the
obligation, of providing) or (iii) cause the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in accordance with Section 4.3. 

4.5. Capital Accounts. A separate capital account (a “Capital Account”) shall be established
and maintained for each Partner in accordance with Regulations Section 1.704-1(b)(2)(iv) and a Partner shall have a single Capital Account with respect to all Partnership Interests held by such Partner.
If (i) a new or existing Partner acquires an additional Partnership Interest in exchange for more than a de minimis Capital Contribution, (ii) the Partnership distributes to a Partner more than a de minimis amount of
Partnership property or money as consideration for a Partnership Interest, (iii) the Partnership is liquidated within the meaning of Regulation Section 1.704-1(b)(2)(ii)(g), or (iv) the
Partnership grants a Partnership Interest (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the Partnership, the General Partner may revalue the property of the Partnership to its fair
market value (as determined by the General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of the Code) in accordance with Regulations
Section 1.704-1(b)(2)(iv)(f). When the Partnership’s property is revalued by the General Partner, the Capital Accounts of the Partners shall be adjusted in accordance with Regulations Sections 1.704-1(b)(2)(iv)(f) and (g), which generally require such Capital Accounts to be adjusted to reflect the manner in which the unrealized gain or loss inherent in such property (that has not been reflected in the
Capital Accounts previously) would be allocated among the Partners pursuant to Section 5.1 if there were a taxable disposition of such property for its fair market value (as determined by the General Partner, in its sole and absolute
discretion, and taking into account Section 7701(g) of the Code) on the date of the revaluation. 
 4.6.
Percentage Interests. If the number of outstanding Partnership Units increases or decreases during a taxable year, each Partner’s Percentage Interest shall be adjusted by the General Partner effective as of the effective date
of each such increase or decrease to a percentage equal to the number of Partnership Units held by such Partner divided by the aggregate number of Partnership Units outstanding after giving effect to such increase or decrease. If the Partners’
Percentage Interests are adjusted pursuant to this Section 4.6, the Profits and Losses for the taxable year in which the adjustment occurs shall be allocated between the part of the year ending on the day when the adjustment occurs and the part
of the year beginning on the following day either (i) as if the taxable year had ended on the date of the adjustment or (ii) based on the number of days in each part. The General Partner, in its sole and absolute discretion, shall
determine which method shall be used to allocate Profits and Losses for the taxable year in which the adjustment occurs. The allocation of Profits and Losses for the earlier part of the year shall be based on the Percentage Interests before
adjustment, and the allocation of Profits and Losses for the later part shall be based on the adjusted Percentage Interests. 
 
4.7. No Interest on Contributions. No Partner shall be entitled to interest on its Capital Contribution. 
 
4.8. Return of Capital Contributions. No Partner shall be entitled to withdraw any part of its Capital Contribution or its Capital Account or to receive any distribution from the Partnership, except as specifically provided
in this Agreement. Except as otherwise provided herein, there shall be no obligation to return to any Partner or withdrawn Partner any part of such Partner’s Capital Contribution for so long as the Partnership continues in existence. 

4.9. No Third Party Beneficiary. No creditor or other third party having dealings with the Partnership
shall have the right to enforce the right or obligation of any Partner to make Capital Contributions or loans or to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions of this

  
 12 

Table of Contents

 
Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto and their respective successors and assigns. None of the rights or obligations of the Partners
herein set forth to make Capital Contributions or loans to the Partnership shall be deemed an asset of the Partnership for any purpose by any creditor or other third party, nor may such rights or obligations be sold, transferred or assigned by the
Partnership or pledged or encumbered by the Partnership to secure any debt or other obligation of the Partnership or of any of the Partners. In addition, it is the intent of the parties hereto that no distribution to any Limited Partner shall be
deemed a return of money or other property in violation of the Act. However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Limited Partner is obligated to return such money or property, such
obligation shall be the obligation of such Limited Partner and not of the General Partner. Without limiting the generality of the foregoing, a deficit Capital Account of a Partner shall not be deemed to be a liability of such Partner nor an asset or
property of the Partnership. 
 ARTICLE 5 

PROFITS AND LOSSES; DISTRIBUTIONS 

5.1. Allocation of Profit and Loss. 

(a) General Partner Gross Income Allocation. There shall be specially allocated to the General Partner an amount of
(i) first, items of Partnership income and (ii) second, items of Partnership gain during each fiscal year or other applicable period, before any other allocations are made hereunder, in an amount equal to the excess, if any, of the
cumulative reimbursements made to the General Partner under Section 6.5(b) (other than reimbursements which would properly be treated as “guaranteed payments” or which are attributable to the reimbursement of expenses which would
properly be either deductible by the Partnership or added to the tax basis of any Partnership asset) over the cumulative allocations of Partnership income and gain to the General Partner under this Section 5.1(a). 

(b) General Allocations. The items of Profit and Loss of the Partnership for each fiscal year or other applicable period,
other than any items allocated under Section 5.1(a), shall be allocated among the Partners in a manner that will, as nearly as possible (after giving effect to the allocations under Section 5.1(a), 5.1(c), 5.1(f), 5.1(g) and 5.2(c)) cause
the Capital Account balance of each Partner at the end of such fiscal year or other applicable period to equal (i) the amount of the hypothetical distribution that such Partner would receive if the Partnership were liquidated on the last day of
such period and all assets of the Partnership, including cash, were sold for cash equal to their Carrying Values, taking into account any adjustments thereto for such period, all liabilities of the Partnership were satisfied in full in cash
according to their terms (limited with respect to each nonrecourse liability to the Carrying Value of the assets securing such liability) and the remaining cash proceeds (after satisfaction of such liabilities) were distributed in full pursuant to
Section 5.2, minus (ii) the sum of such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that the Partner would be obligated to contribute to the
capital of the Partnership, all computed as of the date of the hypothetical sale of assets. Notwithstanding the foregoing, the General Partner may make such allocations as it deems reasonably necessary to give economic effect to the provisions of
this Agreement, taking into account facts and circumstances as the General Partner deems reasonably necessary for this purpose. 
 (c)
Regulatory Allocations. Notwithstanding any other provision of this Agreement: 
 (i) Minimum Gain Chargeback. If there is a net
decrease in Partnership Minimum Gain or Partner Nonrecourse Debt Minimum Gain (determined in accordance with the principles of U.S. Treasury Regulations Sections 1.704-2(d) and
1.704-2(i)) during any Partnership taxable year, the Partners shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to their
respective shares of such net decrease during such year, determined pursuant to U.S. Treasury Regulations Sections 1.704-2(g) and 1.704-2(i)(5). The items to be so
allocated shall be determined in accordance with U.S. Treasury Regulations Section 1.704-2(f). This Section 5.1(c)(i) is intended to comply with the minimum gain chargeback requirements in such U.S.
Treasury Regulations Sections and shall be interpreted consistently therewith; including that no chargeback shall be required to the extent of the exceptions provided in U.S. Treasury Regulations Sections
1.704-2(f) and 1.704-2(i)(4). 

  
 13 

Table of Contents

 (ii) Qualified Income Offset. If any Partner unexpectedly receives any adjustments,
allocations, or distributions described in U.S. Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), which adjustment, allocation, or distribution creates or increases a deficit balance
in that Partner’s Capital Account Credit that is in excess of the sum of (i) that portion of any deficit Capital Account balance that such Partner is obligated to restore pursuant to any provision of this Agreement or any other document
and (ii) the amount each such Partner is deemed to be obligated to restore pursuant to the penultimate sentences of U.S. Treasury Regulations Sections 1.704-2(g)(1) and
1.704-2(i)(5), items of Partnership income and gain shall be specially allocated to such Partner in an amount and manner sufficient to eliminate the deficit Capital Account balance created by such adjustments,
allocations or distributions as promptly as possible; provided that an allocation pursuant to this Section 5.1(c)(ii) shall be made only to the extent that a Partner would have a deficit Capital Account balance in excess of such sum after all
other allocations provided for in this Article V have been tentatively made as if this Section 5.1(c)(ii) were not in this Agreement. This Section 5.1(c)(ii) is intended to comply with the “qualified income offset” requirement of
U.S. Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

(iii) Gross Income Allocation. If one or more Partners has a deficit Capital Account at the end of any Fiscal Year that is in excess of the sum
of (i) the amount each such Partner is obligated to restore, if any, pursuant to any provision of this Agreement or any other document, and (ii) the amount each such Partner is deemed to be obligated to restore pursuant to the penultimate
sentences of U.S. Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Partner shall be specially allocated items of Partnership income and gain in
the amount of such excess as quickly as possible (in proportion to the amount of such deficit); provided that an allocation pursuant to this Section 5.1(c)(iii) shall be made only if and to the extent that a Partner would have a deficit Capital
Account in excess of such sum after all other allocations provided for in this Article 5 have been tentatively made as if Section 5.1(c)(ii) and this Section 5.1(c)(iii) were not in this Agreement. 

(iv) Payee Allocation. If any payment to any person that is treated by the Partnership as the payment of an expense is recharacterized by a
taxing authority as a Partnership distribution to the payee as a partner, such payee shall be specially allocated, in the manner determined by the General Partner, an amount of Partnership gross income and gain as quickly as possible equal to the
amount of the distribution. 
 (v) Nonrecourse Deductions. Nonrecourse Deductions shall be allocated pro rata based on the number of
Partnership Units held by each Partner. “Nonrecourse Deductions” has the meaning specified in U.S. Treasury Regulations Section 1.704-2(b)(1) and 1.704-2(c). The amount of Nonrecourse
Deductions shall be determined according to the provisions of U.S. Treasury Regulations Section 1.704-2(c). 

(vi) Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any taxable period shall be allocated to the Partner who bears the
economic risk of loss with respect to the liability to which such Partner Nonrecourse Deductions are attributable in accordance with U.S. Treasury Regulations Section 1.704-2(i)(1). “Partner
Nonrecourse Deductions” has the meaning specified in U.S. Treasury Regulations Section 1.704-2(i)(2). 

(vii) Any special allocations of income or gain pursuant to Section 5.1(c)(ii) or Section 5.1(c)(iii) hereof shall be taken into account in
computing subsequent allocations pursuant to Section 5.1(b) and this Section 5.1(c)(vii), so that the net amount of any items so allocated and all other items allocated to each Partner shall, to the extent possible, be equal to the net
amount that would have been allocated to each Partner if such allocations pursuant to Section 5.1(c)(ii) or Section 5.1(c)(iii) had not occurred. 

(d) Allocations Between Transferor and Transferee. If a Partner transfers any part or all of its Partnership Interest, the
distributive shares of the various items of Profit and Loss allocable among the Partners during such fiscal year of the Partnership shall be allocated between the transferor and the transferee Partner either (i) as if the Partnership’s
fiscal year had ended on the date of the transfer, or (ii) based on the number of days of such fiscal year that each was a Partner without regard to the results of Partnership activities in the respective portions of such fiscal year in which
the transferor and the transferee were Partners. The General Partner, in its sole and absolute discretion, shall determine which method shall be used to allocate the distributive shares of the various items of Profit and Loss between the transferor
and the transferee Partner. 
 (e) Definition of Profit and Loss. “Profit” and “Loss”
means, for each taxable year or other period, an amount equal to the Partnership’s taxable income or loss for such taxable year or period, determined in accordance with Section 703(a) of the Code (for this purpose, all items of income,
gain, loss or deduction required to be stated 

  
 14 

Table of Contents

 
separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss and determined in accordance with the accounting method used by the Partnership for U.S.
federal income tax purposes), with the following adjustments: (i) all items of income, gain, loss or deduction allocated pursuant to Sections 5.1(c)(i) through (vi) shall not be taken into account in computing such taxable income or loss;
(ii) any income of the Partnership that is exempt from U.S. federal income taxation and not otherwise taken into account in computing Profit and Loss shall be added to such taxable income or loss; (iii) if the Carrying Value of any asset
differs from its adjusted tax basis for U.S. federal income tax purposes, any depreciation, amortization, gain or loss resulting from a disposition of such asset shall be calculated with reference to such Carrying Value; (iv) upon an adjustment
to the Carrying Value of any asset pursuant to the definition of Carrying Value (other than an adjustment in respect of depreciation, amortization or cost recovery deductions), the amount of the adjustment shall be included as gain or loss in
computing such taxable income or loss; (v) if the Carrying Value of any asset differs from its adjusted tax basis for U.S. federal income tax purposes, the amount of depreciation, amortization or cost recovery deductions with respect to such
asset for purposes of Profit and Loss shall be an amount which bears the same ratio to such Carrying Value as the U.S. federal income tax depreciation, amortization or other cost recovery deductions bears to such adjusted tax basis (provided that if
the U.S. federal income tax depreciation, amortization or other cost recovery deduction is zero, the Partners may use any reasonable method for purposes of determining depreciation, amortization or other cost recovery deductions in calculating
Profit and Loss); (vi) any expenditures of the Partnership not deductible in computing taxable income or loss, not properly capitalizable and not otherwise taken into account in computing Profit and Loss pursuant to this definition shall be treated
as deductible items; (vii) to the extent an adjustment to the adjusted tax basis of any Partnership property pursuant to Section 734(b) of the Code or Section 743(b) of the Code is required pursuant to U.S. Treasury Regulations Section 1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner’s Interest in the Partnership, the amount of such
adjustment shall be treated as an item of gain or loss from the disposition of the property and shall be taken into account for purposes of computing Profit and Loss; and (viii) the amounts of the items of Partnership income, gain, loss or
deduction available to be specially allocated pursuant to Sections 5.1(c)(i) through (vi) shall be determined by applying rules analogous to those set forth in clauses (ii) through (vii) above. 

(f) Tax Allocations. All items of income, gain, loss, deduction and credit of the Partnership shall be allocated among the
Partners for federal, state and local income tax purposes consistent with the manner that the corresponding constituent items of Profit and Loss shall be allocated among the Partners pursuant to this Agreement in the manner determined by the General
Partner, except as may otherwise be provided herein or by the Code. Notwithstanding the foregoing, the General Partner may make such allocations as it deems reasonably necessary to give economic effect to the provisions of this Agreement, taking
into account facts and circumstances as the General Partner deems reasonably necessary for this purpose. 
 (g) Curative
Allocations. The allocations set forth in Section 5.1(c) of this Agreement (the “Regulatory Allocations”) are intended to comply with certain requirements of the Regulations. The General Partner is authorized to offset all
Regulatory Allocations either with other Regulatory Allocations or with special allocations of other items of Partnership income, gain, loss or deduction pursuant to this Section 5.1(g). Therefore, notwithstanding any other provision of this
Section 5.1 (other than the Regulatory Allocations), the General Partner shall make such offsetting special allocations of Partnership income, gain, loss or deduction in whatever manner it deems appropriate so that, after such offsetting
allocations are made, each Partner’s Capital Account is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were not part of this Agreement and all Partnership items were
allocated pursuant to Sections 5.1(a) and (b). 
 5.2. Distribution of Cash. 

(a) The Partnership shall distribute cash on a monthly (or, at the election of the General Partner, more or less frequently) basis, in an
amount determined by the General Partner in its sole and absolute discretion, to the Partners who are Partners on the Partnership Record Date with respect to such month (or other distribution period) in accordance with Section 5.2(b). The
Partnership shall be deemed to have distributed cash to the General Partner directly or through the Initial Limited Partner in an amount equal to the amount of distributions by the General Partner that are reinvested in REIT Shares issued by the
General Partner pursuant to the General Partner’s dividend reinvestment plan, and the General Partner or the Initial Limited Partner, as the case may be, shall be deemed to 

  
 15 

Table of Contents

 
have made Capital Contributions to the Partnership in the aggregate amount of such distributions in return for an equal number of Partnership Units having the same Class designation as the
issued REIT Shares. 
 (b) Except for distributions pursuant to Section 5.6 in connection with the dissolution and liquidation of the
Partnership and subject to the provisions of Sections 5.2(c), 5.2(d), 5.2(e), 5.3 and 5.5, all distributions of cash (including any deemed distributions pursuant to Section 5.2(a)) shall be made to the Partners in amounts proportionate to the
aggregate Net Asset Value of the Partnership Units held by the respective Partners on the Partnership Record Date, except that the amount distributed per Partnership Unit of any Class may differ from the amount per Partnership Unit of another
Class on account of differences in Class-specific expense allocations with respect to REIT Shares as described in the Multiple Class Plan or for other reasons as determined by the Board of Directors of the General Partner. Any such
differences shall correspond to differences in the amount of distributions per REIT Share for REIT Shares of different Classes, with the same adjustments being made to the amount of distributions per Partnership Unit for Partnership Units of a
particular Class as are made to the distributions per REIT Share by the General Partner with respect to REIT Shares having the same Class designation. 

(c) Notwithstanding the foregoing, so long as the Advisory Agreement has not been terminated (including by means of non-renewal), the Special Limited Partner shall be entitled to a distribution (the “Performance Allocation”), promptly following the end of each year (which shall accrue on a monthly basis) in an amount
equal to: 
 (i) First, if the Total Return for the applicable period exceeds the sum of (i) the Hurdle Amount for that period and (ii) the
Loss Carryforward Amount (any such excess, “Excess Profits”), 100% of such Excess Profits until the total amount allocated to the Special Limited Partner equals 5.0% of the sum of (x) the Hurdle Amount for that period and (y) any
amount allocated to the Special Limited Partner pursuant to this clause (this is commonly referred to as a “Catch-Up”); and 

(ii) Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits. 

Any amount by which Total Return falls below the Hurdle Amount and that does not constitute Loss Carryforward Amount will not be carried forward to subsequent
periods. 
 With respect to all Partnership Units that are repurchased at the end of any month in connection with redemptions or repurchases of REIT Shares
pursuant to the General Partner’s Share Redemption Program, a tender offer by the General Partner or otherwise, the Special Limited Partner shall be entitled to such Performance Allocation in an amount calculated as described above calculated
in respect of the portion of the year for which such Partnership Units were outstanding, and proceeds for any such Partnership Unit repurchase will be reduced by the amount of any such Performance Allocation. 

Distributions on the Performance Allocation may be payable in cash or Class I Units at the election of the Special Limited Partner. If the Special
Limited Partner elects to receive such distributions in Class I Units, the Special Limited Partner will receive the number of Class I Units that results from dividing the Performance Allocation by the Net Asset Value per Class I Unit
at the time of such distribution. If the Special Limited Partner elects to receive such distributions in Class I Units, the Special Limited Partner may request the Partnership to redeem such Class I Units from the Special Limited Partner
at any time thereafter pursuant to Section 8.5. 
 The measurement of the change in Net Asset Value Per Unit for the purpose of calculating the Total
Return is subject to adjustment by the Board of Directors of the General Partner to account for any dividend, split, recapitalization or any other similar change in the Partnership’s capital structure or any distributions that the Board of
Directors of the General Partner deems to be a return of capital if such changes are not already reflected in the Partnership’s net assets. 
 The
Special Limited Partner will not be obligated to return any portion of the Performance Allocation paid due to the subsequent performance of the Partnership. 

  
 16 

Table of Contents

 Because the Special Limited Partner acquired the Special Limited Partner Interest as of the date of this
Agreement, for purposes of the calculation above, the initial calendar year will be deemed to begin on the date of this Agreement and end on December 31, 2021. 

In the event the Advisory Agreement is terminated (including by means of non-renewal), the Special Limited Partner
will be allocated any accrued Performance Allocation with respect to all Partnership Units as of the date of such termination. 
 (d) To the
extent the Partnership is required by law to withhold or to make tax payments (including interest and penalties thereon) on behalf of or with respect to any Partner (“Tax Advances”), the General Partner may withhold such amounts and make
such tax payments as so required. All Tax Advances made on behalf of a Partner shall, at the option of the General Partner, (i) be promptly paid to the Partnership by the Partner on whose behalf such Tax Advances were made or (ii) be
repaid by reducing the amount of the current or next succeeding distribution or distributions which would otherwise have been made to such Partner or, if such distributions are not sufficient for that purpose, by so reducing the proceeds of
liquidation otherwise payable to such Partner. Whenever the General Partner selects the option set forth in clause (ii) of the immediately preceding sentence for repayment of a Tax Advance by a Partner, for all other purposes of this Agreement
such Partner shall be treated as having received all distributions unreduced by the amount of such Tax Advance. Each Partner hereby agrees to indemnify and hold harmless the Partnership and the General Partner and any member or officer of the
General Partner from and against any liability with respect to Tax Advances required on behalf of or with respect to such Partner. Each Partner shall furnish the General Partner with such information, forms and certifications as it may require and
as are necessary to comply with the regulations governing the obligations of withholding tax agents, as well as such information, forms and certifications as are necessary with respect to any withholding taxes imposed by countries other than the
United States and represents and warrants that the information and forms furnished by it shall be true and accurate in all respects. The amount of any taxes paid by or withheld from receipts of the Partnership (or any investment in which the
Partnership invests that is treated as a flow-through entity for U.S. federal income tax purposes) allocable to a Partner from an investment shall be deemed to have been distributed to each Partner to the extent that the payment or withholding of
such taxes reduced distribution proceeds otherwise distributable to such Partner as provided herein. 
 (e) In no event may a Partner
receive a distribution of cash with respect to a Partnership Unit if such Partner is entitled to receive a cash distribution as the holder of record of a REIT Share for which all or part of such Partnership Unit has been or will be exchanged. 

5.3. REIT Distribution Requirements. The General Partner shall use its commercially reasonable efforts
to cause the Partnership to distribute amounts sufficient to enable the General Partner to make stockholder distributions that will allow the General Partner to (i) meet its distribution requirement for qualification as a REIT as set forth in
Section 857 of the Code and (ii) avoid any federal income or excise tax liability imposed by the Code. 

5.4. No Right to Distributions in Kind. No Partner shall be entitled to demand property other than cash
in connection with any distributions by the Partnership. 
 5.5. Limitations on Return of Capital
Contributions. Notwithstanding any of the provisions of this Article 5, no Partner shall have the right to receive and the General Partner shall not have the right to make, a distribution that includes a return of all or part of a
Partner’s Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does not exceed the
fair market value of the Partnership’s assets. 
 5.6. Distributions Upon Liquidation.
Immediately before liquidation of the Partnership, Class T Units will automatically convert to Class I Units at the Class T Conversion Rate, Class S Units will automatically convert to Class I Units at the Class S
Conversion Rate and Class D Units will automatically convert to Class I Units at the Class D Conversion Rate. Upon liquidation of the Partnership, after payment of, or adequate provision for, debts, obligations and the establishment
of reserves of the Partnership, including any Partner loans, and after payment of any accrued Performance Allocation to the Special Limited Partner and any preferred return owed to any other Partnership Units, any remaining assets of the Partnership
shall be distributed to each holder of Class I Units, ratably with each other holder of Class I Units, which will include all converted Class T Units, Class S Units and Class D

  
 17 

Table of Contents

 
Units, in such proportion as the number of outstanding Class I Units held by such holder bears to the total number of outstanding Class I Units then outstanding. 

Notwithstanding any other provision of this Agreement, the amount by which the value, as determined in good faith by the General Partner, of any property
other than cash to be distributed in kind to the Partners exceeds or is less than the Carrying Value of such property shall, to the extent not otherwise recognized by the Partnership, be taken into account in computing Profit and Loss of the
Partnership for purposes of crediting or charging the Capital Accounts of, and distributing proceeds to, the Partners, pursuant to this Agreement. 
 To the
extent deemed advisable by the General Partner, appropriate arrangements (including the use of a liquidating trust) may be made to assure that adequate funds are available to pay any contingent debts or obligations. 

5.7. Substantial Economic Effect. It is the intent of the Partners that the allocations of Profit and
Loss under this Agreement have substantial economic effect (or be consistent with the Partners’ interests in the Partnership in the case of the allocation of losses attributable to nonrecourse debt) within the meaning of Section 704(b) of
the Code as interpreted by the Regulations promulgated pursuant thereto. Article 5 and other relevant provisions of this Agreement shall be interpreted in a manner consistent with such intent. 

5.8. Reinvestment. Subject to legal, tax, regulatory or other similar considerations, each Limited
Partner holding Partnership Units agrees to participate in the reinvestment program of distributions to the holders of Partnership Units (the “DRIP” and any participating Limited Partner, a “DRIP Participant”) unless otherwise
agreed with the General Partner in writing. The following provisions shall apply to the DRIP and any Limited Partner’s participation therein: 

(a) Subject to Section 5.8(b)(v), the General Partner shall, on behalf of each DRIP Participant, reinvest all distributions to be made to
such DRIP Participant with respect to its Partnership Units in exchange for such DRIP Participant being issued additional Partnership Units of the same Class of Partnership Units held by such DRIP Participant. Partnership Units issued pursuant
to the DRIP shall be purchased at the applicable Net Asset Value Per Unit on the date that the distribution is payable (calculated as of the most recent month end). 

(b) In connection with this Section 5.8, each Limited Partner agrees and acknowledges as follows: 

(i) The Partnership has designated the General Partner to administer the DRIP and act as agent for the DRIP Participants. The General Partner shall credit
distributions to DRIP Participants on the basis of whole or fractional Partnership Units, and shall reinvest such distributions in additional Partnership Units of the same Class of Partnership Units held by such DRIP Participant. 

(ii) A DRIP Participant shall remain in the DRIP until such DRIP Participant withdraws from the DRIP in accordance with Section 5.8(b)(v) or the General
Partner terminates or suspends the DRIP. 
 (iii) A DRIP Participant shall be deemed to have made a Capital Contribution, and Partnership Units shall be
purchased, on the date that the distribution is payable (at the then-current Net Asset Value Per Unit, calculated as of the most recent month end). No interest shall be paid on cash distributions pending reinvestment under the terms of the DRIP.

 (iv) No DRIP Participant shall have any authorization or power to direct the time or price at which Partnership Units shall be purchased. The total
amount to be invested shall depend on the amount of any distributions paid on the number of Partnership Units owned by the DRIP Participant, as well as any withholding taxes paid on behalf of such DRIP Participant. 

(v) DRIP Participants may elect to withdraw from the DRIP with respect to the Partnership Units held in their account in the DRIP by providing 10 days’
prior written notice of such election to withdraw in a form acceptable to the General Partner and such election to withdraw shall be effective until rescinded by providing written notice of an election to reinstate participation in the DRIP in a
form acceptable to the General Partner. Such written notice of such election to withdraw or be reinstated, as the case may be, must be received by the General Partner prior to the last day of the month in order for a Participant’s termination
to be effective for such month (i.e., a timely termination notice will be effective as of the last day of a month in which it is timely received and will not affect participation in 

  
 18 

Table of Contents

 
the DRIP for any prior month). Any transfer of Partnership Units by a DRIP Participant to a non-DRIP Participant will terminate participation in the DRIP
with respect to the transferred Partnership Units. If a Participant requests that the Partnership repurchase all or any portion of the DRIP Participant’s Partnership Units, the DRIP Participant’s participation in the DRIP with respect to
the DRIP Participant’s Partnership Units for which repurchase was requested but that were not repurchased will be terminated. If a DRIP Participant terminates DRIP participation, the Partnership may, at its option, ensure that the terminating
DRIP Participant’s account will reflect the whole number of Partnership Units in such DRIP Participant’s account and provide a check or other instrument of payment for the cash value of any fractional share in such account. Upon
termination of DRIP participation for any reason, future distributions will be distributed in cash. 
 (c) This Section 5.8 shall not
apply to any distributions to the General Partner or the Initial Limited Partner made pursuant to Section 
5.2(a). 
 ARTICLE 6 

RIGHTS, OBLIGATIONS AND 

POWERS OF THE GENERAL PARTNER 
 
6.1. Management of the Partnership. 
 (a) Except as otherwise expressly provided in this Agreement, the General
Partner shall have full, complete and exclusive discretion to manage and control the business of the Partnership for the purposes herein stated, and shall make all decisions affecting the business and assets of the Partnership. Subject to the
restrictions specifically contained in this Agreement and without limiting any powers of the Adviser pursuant to the Advisory Agreement, the powers of the General Partner shall include, without limitation, the authority to take the following actions
on behalf of the Partnership: 
 (i) to acquire, purchase, own, operate, lease and dispose of any Property; 

(ii) to construct buildings and make other improvements on the Real Properties owned or leased by the Partnership; 

(iii) to authorize, issue, sell, redeem or otherwise purchase any Partnership Interests or any securities (including secured and unsecured debt obligations of
the Partnership, debt obligations of the Partnership convertible into any Class or series of Partnership Interests, or options, rights, warrants or appreciation rights relating to any Partnership Interests) of the Partnership; 

(iv) to borrow or lend money for the Partnership, issue or receive evidences of indebtedness in connection therewith, refinance, increase the amount of,
modify, amend or change the terms of, or extend the time for the payment of, any such indebtedness, and secure such indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership’s assets; 

(v) to pay, either directly or by reimbursement, for all operating costs and general administrative expenses of the Partnership to third parties or to the
General Partner or its Affiliates as set forth in this Agreement; 
 (vi) to guarantee or become a co-maker of
indebtedness of the General Partner or any Subsidiary thereof, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any such guarantee or indebtedness, and secure such guarantee or
indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership’s assets; 
 (vii) to use assets of the Partnership (including,
without limitation, cash on hand) for any purpose consistent with this Agreement, including, without limitation, payment, either directly or by reimbursement, of all operating costs and general administrative expenses of the General Partner, the
Partnership or any Subsidiary of either, to third parties or to the General Partner as set forth in this Agreement; 
 (viii) to lease all or any portion of
any of the Partnership’s assets, whether or not any portion of the Partnership’s assets so leased are to be occupied by the lessee, or, in turn, subleased in whole or in part to others, for such consideration and on such terms as the
General Partner may determine; 

  
 19 

Table of Contents

 (ix) to prosecute, defend, arbitrate, or compromise any and all claims or liabilities in favor of or against
the Partnership, on such terms and in such manner as the General Partner may reasonably determine, and similarly to prosecute, settle or defend litigation with respect to the Partners, the Partnership, or the Partnership’s assets; 

(x) to file applications, communicate, and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the
Partnership’s assets or any other aspect of the Partnership business; 
 (xi) to make or revoke any election permitted or required of the Partnership
by any taxing authority; 
 (xii) to maintain such insurance coverage for public liability, fire and casualty, and any and all other insurance for the
protection of the Partnership, for the conservation of Partnership assets, or for any other purpose convenient or beneficial to the Partnership, in such amounts and such types, as the General Partner shall determine from time to time; 

(xiii) to determine whether or not to apply any insurance proceeds for any Real Property to the restoration of such Real Property or to distribute the same;

 (xiv) to establish one or more divisions of the Partnership, to hire and dismiss employees of the Partnership or any division of the Partnership, and to
retain legal counsel, accountants, consultants, real estate brokers, and such other persons, as the General Partner may deem necessary or appropriate in connection with the Partnership business and to pay therefor such remuneration as the General
Partner may deem reasonable and proper; 
 (xv) to retain other services of any kind or nature in connection with the Partnership business, and to pay
therefor such remuneration as the General Partner may deem reasonable and proper; 
 (xvi) to negotiate and conclude agreements on behalf of the Partnership
with respect to any of the rights, powers and authority conferred upon the General Partner; 
 (xvii) to maintain accurate accounting records and to file
all federal, state and local income tax returns on behalf of the Partnership; 
 (xviii) to distribute Partnership cash or other Partnership assets in
accordance with this Agreement; 
 (xix) to form or acquire an interest in, and contribute Property to, any further limited or general partnerships, joint
ventures or other relationships that the General Partner deems desirable (including, without limitation, the acquisition of interests in, and the contributions of Property to, its Subsidiaries and any other Person in which it has an equity interest
from time to time); 
 (xx) to establish Partnership reserves for working capital, capital expenditures, contingent liabilities, or any other valid
Partnership purpose; 
 (xxi) to merge, consolidate or combine the Partnership with or into another Person; 

(xxii) to do any and all acts and things necessary or prudent to ensure that the Partnership will not be classified as a “publicly traded
partnership” for purposes of Section 7704 of the Code; and 
 (xxiii) to take such other action, execute, acknowledge, swear to or deliver such
other documents and instruments, and perform any and all other acts that the General Partner deems necessary or appropriate for the formation, continuation and conduct of the business and affairs of the Partnership (including, without limitation,
all actions consistent with allowing the General Partner at all times to qualify as a REIT unless the General Partner voluntarily terminates its REIT status) and to possess and enjoy all of the rights and powers of a general partner as provided by
the Act. 
 (b) Except as otherwise provided herein, to the extent the duties of the General Partner require expenditures of funds to be
paid to third parties, the General Partner shall not have any obligations hereunder except to the extent that Partnership funds are reasonably available to it for the performance of such duties, and nothing herein contained shall be deemed to
authorize or require the General Partner, in its capacity as such, to expend its 

  
 20 

Table of Contents

 
individual funds for payment to third parties or to undertake any individual liability or obligation on behalf of the Partnership. 

6.2. Delegation of Authority. The General Partner may delegate any or all of its powers, rights and
obligations hereunder to any Person, and may appoint, employ, contract or otherwise deal with any Person for the transaction of the business of the Partnership, which Person (which may include the Adviser) may, under supervision of the General
Partner, perform any acts or services for the Partnership as the General Partner may approve. 
 6.3.
Indemnification and Exculpation of Indemnitees. 
 (a) To the fullest extent permitted by law and to the extent indemnification
of the Indemnitee by the General Partner is not prohibited under Article XII of the Articles of Incorporation, the Partnership shall indemnify and hereby agrees to indemnify and hold harmless an Indemnitee from and against any and all losses,
claims, damages, liabilities, joint or several, costs and expenses (including reasonable legal fees and expenses), judgments, fines, settlements, penalties and other amounts arising from any and all claims, demands, actions, suits or proceedings,
civil, criminal, administrative or investigative, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnitee and that relate to the operations of the Partnership as set forth in this Agreement in
which any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, unless it is established that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and was committed
in bad faith, was the result of active and deliberate dishonesty or constituted willful misconduct or gross negligence; (ii) the Indemnitee actually received an improper personal benefit in money, property or services; or (iii) in the case
of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. The termination of any proceeding by settlement, judgment, order or upon a plea of nolo contendere or its equivalent shall not, of
itself, create a presumption that an Indemnitee did not act in good faith and in a manner that the Indemnitee believed to be in or not opposed to the best interests of the Partnership or that the Indemnitee’s conduct constituted fraud, willful
misconduct, gross negligence, a material breach of this Agreement, a breach of its fiduciary duty or, with respect to any criminal action or proceeding, an Indemnitee had no reasonable cause to believe his conduct was unlawful. Any indemnification
pursuant to this Section 6.3 shall be made only out of the assets of the Partnership. 
 (b) To the extent reimbursement or advancement
of expenses of the Indemnitee by the General Partner is not prohibited under Article XII of the Articles of Incorporation, the Partnership shall reimburse an Indemnitee for reasonable expenses incurred by an Indemnitee who is a party to a proceeding
in advance of the final disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the
Partnership as authorized in this Section 6.3 has been met, and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall ultimately be determined that the standard of conduct has not been met. 

(c) The indemnification provided by this Section 6.3 shall be in addition to any other rights to which an Indemnitee or any other Person
may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity. 

(d) The Partnership may purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall
determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership’s activities, regardless of whether the Partnership would have the power to indemnify such Person
against such liability under the provisions of this Agreement. 
 (e) For purposes of this Section 6.3, the Partnership shall be deemed
to have requested an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of its duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan or participants or
beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 6.3; and actions taken or omitted by the Indemnitee
with respect to an employee benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the
best interests of the Partnership. 

  
 21 

Table of Contents

 (f) In no event may an Indemnitee subject the Partners to personal liability by reason of
the indemnification provisions set forth in this Agreement. 
 (g) An Indemnitee shall not be denied indemnification in whole or in part
under this Section 6.3 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement and the Articles of Incorporation. 

(h) The provisions of this Section 6.3 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons. 
 6.4. Liability and
Obligations of the General Partner. 
 (a) Notwithstanding anything to the contrary set forth in this Agreement, the General Partner
shall not be liable for monetary damages to the Partnership or any Partners for losses sustained or liabilities incurred as a result of errors in judgment or of any act or omission not amounting to willful misconduct or gross negligence. The General
Partner shall not be in breach of any duty that the General Partner may owe to the Limited Partners or the Partnership or any other Persons under this Agreement or of any duty stated or implied by law or equity provided the General Partner, acting
in good faith, abides by the terms of this Agreement. 
 (b) The Limited Partners expressly acknowledge that the General Partner is acting
on behalf of the Partnership, itself and its stockholders collectively, and that neither the General Partner nor its Board of Directors is under any obligation to consider the separate interests of the Limited Partners (including, without
limitation, the tax consequences to Limited Partners or the tax consequences of some, but not all, of the Limited Partners) in deciding whether to cause the Partnership to take (or decline to take) any actions. In the event of a conflict between the
interests of its stockholders on one hand and the Limited Partners on the other, the General Partner shall endeavor in good faith to resolve the conflict in a manner not adverse to either its stockholders or the Limited Partners; provided, however,
that for so long as the General Partner directly or indirectly through the Initial Limited Partner owns a controlling interest in the Partnership, any such conflict that the General Partner, in its sole and absolute discretion, determines cannot be
resolved in a manner not adverse to either its stockholders or the Limited Partner shall be resolved in favor of the stockholders. The General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits
not derived by Limited Partners in connection with such decisions, provided that the General Partner has acted in good faith. 
 (c) Subject
to its obligations and duties as General Partner set forth in Section 6.1 hereof, the General Partner may exercise any of the powers granted to it under this Agreement and perform any of the duties imposed upon it hereunder either directly or
by or through its agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by it in good faith. 

(d) Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any
decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of the General Partner to
continue to qualify as a REIT, (ii) to prevent the General Partner from incurring any taxes under Section 857, Section 4981, or any other provision of the Code, or (iii) to ensure that the Partnership will not be classified as a
“publicly traded partnership” under section 7704 of the Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners. 

(e) Any amendment, modification or repeal of this Section 6.4 or any provision hereof shall be prospective only and shall not in any way
affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners under this Section 6.4 as in effect immediately prior to such amendment, modification or repeal with respect to matters occurring, in
whole or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be asserted. 
 
6.5. Reimbursement of General Partner. 
 (a) Except as provided in this Section 6.5 and elsewhere in this
Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general partner of the Partnership. 

  
 22 

Table of Contents

 (b) The General Partner shall be reimbursed on a monthly basis, or such other basis as the
General Partner may determine in its sole and absolute discretion, for all Administrative Expenses incurred by the General Partner. 
 
6.6. Outside Activities. 
 (a) Subject to Section 6.8 hereof, the Articles of Incorporation and any
agreements entered into by the General Partner or its Affiliates with the Partnership or any of its Subsidiaries, any officer, director, employee, agent, trustee, Affiliate or stockholder of the General Partner shall be entitled to and may have,
directly or indirectly, business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities substantially similar or identical to those of the Partnership. Neither the
Partnership nor any of the Limited Partners shall have any rights by virtue of this Agreement in any such business ventures, interests or activities. None of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement
or the partnership relationship established hereby in any such business ventures, interests or activities, and the General Partner shall have no obligation pursuant to this Agreement to communicate or offer any opportunities or interest in any such
business ventures, interests and activities to the Partnership or any Limited Partner, even if such opportunity is of a character which, if presented to the Partnership or any Limited Partner, could be taken by such Person, even if it may raise a
conflict of interest with the Limited Partners or the Partnership. The General Partner will not be liable for breach of any fiduciary or other duty by reason of the fact that such party pursues or acquires for, or directs such opportunity or
interest to another Person or does not communicate or offer such opportunity or interest to the Partnership. 
 (b) No Limited Partner
shall, by reason of being a Limited Partner in the Partnership, have any right to participate in any manner in any profits or income earned or derived by or accruing to the General Partner and its respective Affiliates, or the respective members,
partners, officers, directors, employees, stockholders, agents or representatives thereof from the conduct of any business other than the business of the Partnership or from any transaction in instruments effected by the General Partner and its
Affiliates or the respective members, partners, stockholders, officers, directors, employees or agents thereof for any account other than that of the Partnership. 

6.7. Transactions With Affiliates. 

(a) Any Affiliate of the General Partner or the Adviser may be employed or retained by the Partnership and may otherwise deal with the
Partnership (whether as a buyer, lessor, lessee, manager, furnisher of goods or services, broker, agent, lender or otherwise) and may receive from the Partnership any compensation, price, or other payment therefor, in each case which the General
Partner determines to be fair and reasonable and in compliance with the Articles of Incorporation. 
 (b) The Partnership may lend or
contribute to its Subsidiaries or other Persons in which it has an equity investment, and such Persons may borrow funds from the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner and in
compliance with the Articles of Incorporation. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person. 

(c) The Partnership may transfer assets to joint ventures, other partnerships, corporations or other business entities in which it is or
thereby becomes a participant, and in which any of its Affiliates may or may not be a participant, upon such terms and subject to such conditions as the General Partner deems are consistent with this Agreement, applicable law, the Articles of
Incorporation and the REIT status of the General Partner. 
 (d) Except as expressly permitted by this Agreement, neither the General
Partner nor any of its Affiliates shall sell, transfer or convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions that are, in the General Partner’s sole discretion, on
terms that are fair and reasonable to the Partnership and in compliance with the Articles of Incorporation. 
 6.8.
Title to Partnership Assets. Title to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner, individually or
collectively, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General
Partner may determine, including Affiliates of the General Partner. The General Partner hereby declares and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any

  
 23 

Table of Contents

 
nominee or Affiliate of the General Partner shall be held by the General Partner for the use and benefit of the Partnership in accordance with the provisions of this Agreement; provided, however,
that the General Partner shall use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon as reasonably practicable. All Partnership assets shall be recorded as the property of the Partnership in
its books and records, irrespective of the name in which legal title to such Partnership assets is held. 
 6.9.
Repurchases and Exchanges of REIT Shares. 
 (a) Repurchases. If the General Partner repurchases or redeems any
REIT Shares or makes a cash tender offer to acquire REIT shares and acquires any REIT Shares in such tender offer (other than REIT Shares repurchased or redeemed with proceeds received from the issuance of other REIT Shares), then the General
Partner shall cause the Partnership to purchase from the General Partner or the Initial Limited Partner a number of Partnership Units having the same Class designation as the repurchased, redeemed or acquired REIT Shares for that Class of
Partnership Units on the same terms that the General Partner repurchased, redeemed or acquired such REIT Shares (including any applicable discount to Net Asset Value). 

(b) Exchanges. If the General Partner exchanges any REIT Shares of any Class (“Exchanged REIT Shares”) for, or converts any
REIT Shares of any Class to, REIT Shares of a different Class (“Received REIT Shares”), then the General Partner shall, and shall cause the Partnership to, exchange or convert a number of Partnership Units having the same
Class designation as the Exchanged REIT Shares, for Partnership Units having the same Class designation as the Received REIT Shares on the same terms that the General Partner exchanged or converted the Exchanged REIT Shares. 

6.10. No Duplication of Fees or Expenses. The Partnership may not incur or be responsible for any fee
or expense (in connection with an Offering or otherwise) that would be duplicative of fees and expenses paid by the General Partner. 
 
ARTICLE 7 
 CHANGES IN GENERAL PARTNER 

7.1. Transfer of the General Partner’s Partnership Interest. 

(a) The General Partner shall not transfer all or any portion of its General Partnership Interest or withdraw as General Partner except as
provided in, or in connection with a transaction contemplated by, Section 7.1(b), (c) or (d). 
 (b) Except as otherwise provided in
Section 6.4(b) or Section 7.1(c) or (d) hereof, the General Partner shall not engage in any merger, consolidation or other combination with or into another Person or sale of all or substantially all of its assets, (other than in
connection with a change in the General Partner’s state of incorporation or organizational form) in each case which results in a change of control of the General Partner (a “Transaction”), unless: 

(i) the consent of Limited Partners holding more than 50% of the Percentage Interests of the Limited Partners is obtained; 

(ii) as a result of such Transaction all Limited Partners other than the General Partner in its capacity as a Limited Partner or the Initial Limited Partner
will receive for each Partnership Unit of each Class an amount of cash, securities, or other property equal to the greatest amount of cash, securities or other property paid in the Transaction to a holder of one REIT Share having the same
Class designation as that Partnership Unit in consideration of such REIT Share; provided that if, in connection with the Transaction, a purchase, tender or exchange offer (“Offer”) shall have been made to and accepted by the holders
of more than 50% of the outstanding REIT Shares, each holder of Partnership Units other than the General Partner in its capacity as a Limited Partner or the Initial Limited Partner shall be given the option to exchange its Partnership Units for the
greatest amount of cash, securities, or other property which a Limited Partner holding Partnership Units would have received had it (1) exercised its Redemption 

  
 24 

Table of Contents

 
Right and (2) sold, tendered or exchanged pursuant to the Offer the REIT Shares received upon exercise of the Redemption Right immediately prior to the expiration of the Offer; or 

(iii) the General Partner is the surviving entity in the Transaction and either (A) the holders of REIT Shares do not receive cash, securities, or other
property in the Transaction or (B) all Limited Partners other than the General Partner in its capacity as a Limited Partner or the Initial Limited Partner receive in exchange for their Partnership Units of each Class, an amount of cash,
securities, or other property (expressed as an amount per REIT Share) that is no less than the greatest amount of cash, securities, or other property (expressed as an amount per REIT Share) received in the Transaction by any holder of REIT Shares
having the same Class designation as the Partnership Units being exchanged. 
 (c) Notwithstanding Section 7.1(b), the General
Partner may merge with or into or consolidate with another entity if immediately after such merger or consolidation (i) substantially all of the assets of the successor or surviving entity (the “Survivor”), other than Partnership
Units held by the General Partner directly or through the Initial Limited Partner, are contributed, directly or indirectly, to the Partnership as a Capital Contribution in exchange for Partnership Units with a fair market value equal to the value of
the assets so contributed as determined by the Survivor in good faith and (ii) the Survivor expressly agrees to assume all obligations of the General Partner, as appropriate, hereunder. Upon such contribution and assumption, the Survivor shall
have the right and duty to amend this Agreement as set forth in this Section 7.1(c). The Survivor shall in good faith arrive at a new method for the calculation of the Cash Amount and the REIT Shares Amount after any such merger or
consolidation so as to approximate the existing method for such calculation as closely as reasonably possible. Such calculation shall take into account, among other things, the kind and amount of securities, cash and other property that was
receivable upon such merger or consolidation by a holder of REIT Shares of each Class or options, warrants or other rights relating thereto, and which a holder of Partnership Units of any Class could have acquired had such Partnership
Units been exchanged immediately prior to such merger or consolidation. Such amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as may be practicable to the adjustments
provided for in Section 4.3(a)(ii). The Survivor also shall in good faith modify the definition of REIT Shares and make such amendments to Section 8.5 so as to approximate the existing rights and obligations set forth in Section 8.5
as closely as reasonably possible. The above provisions of this Section 7.1(c) shall similarly apply to successive mergers or consolidations permitted hereunder. 

In respect of any transaction described in the preceding paragraph, the General Partner is required to use its commercially reasonable efforts to structure
such transaction to avoid causing the Limited Partners to recognize a gain for federal income tax purposes by virtue of the occurrence of or their participation in such transaction, provided such efforts are consistent with the exercise of the Board
of Directors’ fiduciary duties to the stockholders of the General Partner under applicable law. 
 (d) Notwithstanding
Section 7.1(b), a General Partner may transfer all or any portion of its General Partnership Interest to (A) a wholly-owned Subsidiary of such General Partner or (B) the owner of all of the ownership interests of such General Partner,
and following a transfer of all of its General Partnership Interest, may withdraw as General Partner. 
 7.2.
Admission of a Substitute or Additional General Partner. A Person shall be admitted as a substitute or additional General Partner of the Partnership only if the following terms and conditions are satisfied: 

(a) the Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all the terms and
provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required or appropriate in order to effect the admission of such Person as a General Partner, and a certificate evidencing the
admission of such Person as a General Partner shall have been filed for recordation and all other actions required by Section 2.5 in connection with such admission shall have been performed; 

(b) if the Person to be admitted as a substitute or additional General Partner is a corporation or a partnership it shall have provided the
Partnership with evidence satisfactory to counsel for the Partnership of such Person’s authority to become a General Partner and to be bound by the terms and provisions of this Agreement; and 

  
 25 

Table of Contents

 (c) counsel for the Partnership shall have rendered an opinion (relying on such opinions
from other counsel and the state or any other jurisdiction as may be necessary) that (x) the admission of the person to be admitted as a substitute or additional General Partner is in conformity with the Act and (y) none of the actions
taken in connection with the admission of such Person as a substitute or additional General Partner will cause (i) the Partnership to be classified other than as a partnership for federal tax purposes, or (ii) the loss of any Limited
Partner’s limited liability. 
 7.3. Effect of Bankruptcy, Withdrawal, Death or Dissolution of the sole
remaining General Partner. 
 (a) Upon the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its
removal pursuant to Section 7.4(a)) or the death, withdrawal, removal or dissolution of the sole remaining General Partner (except that, if the sole remaining General Partner is on the date of such occurrence a partnership, the withdrawal,
death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or partners),
the Partnership shall be dissolved and terminated unless the Partnership is continued pursuant to Section 7.3(b). The merger of the General Partner with or into any entity that is admitted as a substitute or successor General Partner pursuant
to Section 7.2 shall not be deemed to be the withdrawal, dissolution or removal of the General Partner. 
 (b) Following the occurrence
of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to Section 7.4(a) hereof) or the death, withdrawal, removal or dissolution of the sole remaining General Partner (except that, if the sole remaining
General Partner is, on the date of such occurrence, a partnership, the withdrawal of, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the
business of such General Partner is continued by the remaining partner or partners), the Limited Partners, within 90 days after such occurrence, may elect to continue the business of the Partnership by selecting, subject to Section 7.2 and any
other provisions of this Agreement, a substitute General Partner by consent of the Limited Partners holding a majority of the Percentage Interests of all Limited Partners. If the Limited Partners elect to continue the business of the Partnership and
admit a substitute General Partner, the relationship with the Partners and of any Person who has acquired an interest of a Partner in the Partnership shall be governed by this Agreement. 

7.4. Removal of a General Partner. 

(a) Upon the occurrence of an Event of Bankruptcy as to, or the dissolution of, a General Partner, such General Partner shall be deemed to be
removed automatically; provided, however, that if a General Partner is on the date of such occurrence a partnership, the withdrawal, death or dissolution of, Event of Bankruptcy as to, or removal of, a partner in, such partnership shall be deemed
not to be a dissolution of the General Partner if the business of such General Partner is continued by the remaining partner or partners. The Limited Partners may not remove the General Partner, with or without cause. 

(b) If a General Partner has been removed pursuant to this Section 7.4 and the Partnership is continued pursuant to Section 7.3,
such General Partner shall promptly transfer and assign its General Partnership Interest in the Partnership to the substitute General Partner approved by the Limited Partners in accordance with Section 7.3(b) and otherwise admitted to the
Partnership in accordance with Section 7.2. At the time of assignment, the removed General Partner shall be entitled to receive from the substitute General Partner the fair market value of the General Partnership Interest of such removed
General Partner as reduced by any damages caused to the Partnership by such General Partner. Such fair market value shall be determined by an appraiser mutually agreed upon by the General Partner and the Limited Partners holding a majority of the
Percentage Interests of all Limited Partners within 10 days following the removal of the General Partner. If the parties are unable to agree upon an appraiser, the removed General Partner and the Limited Partners holding a majority of the Percentage
Interests of all Limited Partners each shall select an appraiser. Each such appraiser shall complete an appraisal of the fair market value of the removed General Partner’s General Partnership Interest within 30 days of the General
Partner’s removal, and the fair market value of the removed General Partner’s General Partnership Interest shall be the average of the two appraisals; provided, however, that if the higher appraisal exceeds the lower appraisal by more than
20% of the amount of the lower appraisal, the two appraisers, no later than 40 days after the removal of the General Partner, shall select a third appraiser who shall complete an appraisal of the fair market value of the removed General
Partner’s General Partnership Interest no later than 60 days after the removal of the General Partner. In such case, 

  
 26 

Table of Contents

 
the fair market value of the removed General Partner’s General Partnership Interest shall be the average of the two appraisals closest in value. 

(c) The General Partnership Interest of a removed General Partner, during the time after default until transfer under Section 7.4(b),
shall be converted to that of a special Limited Partner; provided, however, such removed General Partner shall not have any rights to participate in the management and affairs of the Partnership, and shall not be entitled to any portion of the
income, expense, profit, gain or loss allocations or cash distributions allocable or payable, as the case may be, to the Limited Partners. Instead, such removed General Partner shall receive and be entitled only to retain distributions or
allocations of such items that it would have been entitled to receive in its capacity as General Partner, until the transfer is effective pursuant to Section 7.4(b). 

(d) All Partners shall have given and hereby do give such consents, shall take such actions and shall execute such documents as shall be
legally necessary, desirable and sufficient to effect all the foregoing provisions of this Section. 
 
ARTICLE 8 
 RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS 

8.1. Management of the Partnership. The Limited Partners shall not participate in the management or
control of Partnership business nor shall they transact any business for the Partnership, nor shall they have the power to sign for or bind the Partnership, such powers being vested solely and exclusively in the General Partner. 

8.2. Power of Attorney. Each Limited Partner hereby irrevocably appoints the General Partner its true
and lawful attorney-in-fact, who may act for each Limited Partner and in its name, place and stead, and for its use and benefit, to sign, acknowledge, swear to, deliver,
file or record, at the appropriate public offices, any and all documents, certificates, and instruments as may be deemed necessary or desirable by the General Partner to carry out fully the provisions of this Agreement and the Act in accordance with
their terms, which power of attorney is coupled with an interest and shall survive the death, dissolution or legal incapacity of the Limited Partner, or the transfer by the Limited Partner of any part or all of its Partnership Interest. 

8.3. Limitation on Liability of Limited Partners. No Limited Partner shall be liable for any debts,
liabilities, contracts or obligations of the Partnership. A Limited Partner shall be liable to the Partnership only to make payments of its Capital Contribution, if any, as and when due hereunder. After its Capital Contribution is fully paid, no
Limited Partner shall, except as otherwise required by the Act, be required to make any further Capital Contributions or other payments or lend any funds to the Partnership. 

8.4. Ownership by Limited Partner of Corporate General Partner or Affiliate. No Limited Partner shall
at any time, either directly or indirectly, own any stock or other interest in the General Partner or in any Affiliate thereof, if such ownership by itself or in conjunction with other stock or other interests owned by other Limited Partners would,
in the opinion of counsel for the Partnership, jeopardize the classification of the Partnership as a partnership for federal tax purposes. The General Partner shall be entitled to make such reasonable inquiry of the Limited Partners as is required
to establish compliance by the Limited Partners with the provisions of this Section. 
 8.5. Redemption
Right. 
 (a) Subject to this Section 8.5 and the provisions of any agreements between the Partnership and one or more Limited
Partners with respect to Partnership Units held by them, each Limited Partner other than the General Partner and the Initial Limited Partner, after holding any Partnership Units for at least one year (or such shorter period as consented to by the
General Partner in its sole discretion), shall have the right (subject to the terms and conditions set forth herein) to require the Partnership to redeem (a “Redemption”) all or a portion of such Partnership Units (the “Tendered
Units”) in exchange (a “Redemption Right”) for REIT Shares issuable on, or the Cash Amount payable on, the Specified Redemption Date, as determined by the General Partner in its sole discretion. Any Redemption Right shall be exercised
pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by the Limited Partner exercising the Redemption Right (the “Tendering Party”). Within 15 days of receipt of a Notice of Redemption, the
Partnership will send to the Limited Partner submitting the Notice of Redemption a response stating whether the General Partner has determined the 

  
 27 

Table of Contents

 
applicable Partnership Units will be redeemed for REIT Shares or the Cash Amount. In either case, the Limited Partner shall be entitled to withdraw the Notice of Redemption if (i) it
provides notice to the Partnership that it wishes to withdraw the request and (ii) the Partnership receives the notice no less than two business days prior to the Specified Redemption Date. 

Notwithstanding the foregoing, but subject to the limitations of this paragraph, the Special Limited Partner and the Adviser shall have the right to require
the Partnership to redeem all or a portion of their Class I Units pursuant to this Section 8.5 at any time and irrespective of the period the Partnership Units have been held by the Special Limited Partner or the Adviser; provided however,
that with respect to any request by the Special Limited Partner for the Redemption of all or any portion of the Class I Units issued or distributed to the Special Limited Partner in payment of the Performance Allocation, including any
Class I Units issued in the DRIP related thereto, (the “Performance Units”), for so long as the Advisory Agreement has not been terminated (including by means of non-renewal), the total amount
of Redemptions of Performance Units by the Special Limited Partner will be subject to the same redemption limitations as set forth in the Share Redemption Program, except that such limitations will apply to such Performance Units instead of REIT
Shares. The General Partner will be entitled to redeem up to the full amount of Participation Units necessary to correspond to redemptions of REIT Shares under the Share Redemption Program (subject to the redemption limits of the Share Redemption
Program). If the General Partner redeems less than the full amount of REIT Shares requested to be redeemed under the Share Redemption Program in any month, then the percentage of outstanding Participation Units redeemed in such month shall not
exceed the percentage of the aggregate Net Asset Value Per REIT Share redeemed pursuant to the Share Redemption Program for such month. In the event some but not all of the Participation Units submitted for redemption during any month are to be
redeemed, the redemptions will be effected on a pro rata basis. Notwithstanding the foregoing, the Redemption of Performance Units will not be subject to any Early Redemption Deduction (as defined in the Share Redemption Program) or Transition
Deduction (as defined in the Share Redemption Program). The foregoing redemption restriction on the Performance Units shall not apply in the event that the General Partner terminates the Advisory Agreement. For the avoidance of doubt, the Adviser
will have the right to require the Partnership to redeem the full amount of its Class I Units without being subject to redemption limitations described herein. Subject to the foregoing redemption restriction on Performance Units, the
Partnership shall redeem any such Class I Units of the Special Limited Partner or the Adviser for the Cash Amount or Class I REIT Shares (at the Special Limited Partner’s or Adviser’s election) unless the Board of Directors of
the General Partner determines that any such redemption for cash would be prohibited by applicable law, this Agreement or the Articles of Incorporation, in which case such Class I Units will be redeemed for an amount of Class I REIT Shares
with an aggregate Net Asset Value equivalent to the aggregate Net Asset Value of such Class I Units. 
 No Limited Partner, other than the Special
Limited Partner and the Adviser, may deliver more than two Notices of Redemption during each calendar year. A Limited Partner, other than the Special Limited Partner and the Adviser, may not exercise the Redemption Right for less than 1,000
Partnership Units or, if such Limited Partner holds less than 1,000 Partnership Units, all of the Partnership Units held by such Partner. The Tendering Party shall have no right, with respect to any Partnership Units so redeemed, to receive any
distribution paid with respect to such Partnership Units if the record date for such distribution is on or after the Specified Redemption Date. 

(b) If the General Partner (or, if applicable, the Special Limited Partner or the Adviser) elects to redeem Tendered Units for REIT Shares
rather than cash, then the Partnership shall direct the General Partner to issue and deliver such REIT Shares to the Tendering Party pursuant to the terms set forth in this Section 8.5(b), in which case, (i) the General Partner, acting as
a distinct legal entity, shall assume directly the obligation with respect thereto and shall satisfy the Tendering Party’s exercise of its Redemption Right, and (ii) such transaction shall be treated, for federal income tax purposes, as a
transfer by the Tendering Party of such Tendered Units to the General Partner or the Initial Limited Partner in exchange for REIT Shares. The percentage of the Tendered Units tendered for Redemption by the Tendering Party for which the General
Partner (or, if applicable, the Special Limited Partner or the Adviser) elects to issue REIT Shares (rather than cash) is referred to as the “Applicable Percentage.” In making such election to acquire Tendered Units, the Partnership shall
act in a fair, equitable and reasonable manner that neither prefers one group or class of Limited Partners over another nor discriminates against a group or class of Limited Partners. If the Partnership elects to redeem any number of Tendered Units
for REIT Shares rather than cash, on the Specified Redemption Date, the Tendering Party shall sell such number of the Tendered Units to the General Partner or the Initial Limited Partner in exchange for a number of REIT Shares equal to the product
of the REIT Shares Amount and the Applicable Percentage. The product of the Applicable Percentage and the REIT 

  
 28 

Table of Contents

 
Shares Amount, if applicable, shall be delivered by the General Partner as duly authorized, validly issued, fully paid and non-assessable REIT Shares free
of any pledge, lien, encumbrance or restriction, other than the Aggregate Stock Ownership Limit (as calculated in accordance with the Articles of Incorporation) and other restrictions provided in the Article of Incorporation, the bylaws of the
General Partner, the Securities Act and relevant state securities or “blue sky” laws. Notwithstanding the provisions of Section 8.5(a) and this Section 8.5(b), the Tendering Parties shall have no rights under this Agreement that
would otherwise be prohibited under the Articles of Incorporation. 
 (c) In connection with an exercise of Redemption Rights pursuant to
this Section 8.5, the Tendering Party shall submit the following to the General Partner, in addition to the Notice of Redemption: 
 (1) A written
affidavit, dated the same date as the Notice of Redemption, (a) disclosing the actual and constructive ownership, as determined for purposes of Code Sections 856(a)(6) and 856(h), of REIT Shares by (i) such Tendering Party and
(ii) any Related Party, (b) representing that, after giving effect to the Redemption, neither the Tendering Party nor any Related Party will own REIT Shares in excess of the Aggregate Stock Ownership Limit (or, if applicable the Excepted
Holder Limit) and (c) if the REIT Shares are not Listed, representing that the Tendering Party meets the minimum income and/or net worth standards in the Articles of Incorporation; 

(2) A written representation that neither the Tendering Party nor any Related Party has any intention to acquire any additional REIT Shares prior to the
closing of the Redemption on the Specified Redemption Date; 
 (3) An undertaking to certify, at and as a condition to the closing of the Redemption on the
Specified Redemption Date, that either (a) the actual and constructive ownership of REIT Shares by the Tendering Party and any Related Party remain unchanged from that disclosed in the affidavit required by Section 8.5(c)(1) or
(b) after giving effect to the Redemption, neither the Tendering Party nor any Related Party shall own REIT Shares in violation of the Aggregate Stock Ownership Limit (or, if applicable, the Excepted Holder Limit); and 

(4) Any other documents as the General Partner may reasonably require. 

(d) Any Cash Amount to be paid to a Tendering Party pursuant to this Section 8.5 shall be paid on the Specified Redemption Date;
provided, however, that the General Partner may elect to cause the Specified Redemption Date to be delayed for up to an additional 180 days to the extent required for the General Partner to cause additional REIT Shares to be issued to provide
financing to be used to make such payment of the Cash Amount. Notwithstanding the foregoing, the General Partner agrees to use its best efforts to cause the closing of the acquisition of Tendered Units hereunder to occur as quickly as reasonably
possible. 
 (e) Notwithstanding any other provision of this Agreement, the General Partner shall place appropriate restrictions on the
ability of the Limited Partners to exercise their Redemption Rights to prevent, among other things, (a) any person from owning shares in excess of the Common Stock Ownership Limit, the Aggregate Stock Ownership Limit and the Excepted Holder
Limit, (b) the General Partner’s common stock from being owned by less than 100 persons, the General Partner from being “closely held” within the meaning of section 856(h) of the Code, and as and if deemed necessary to ensure
that the Partnership does not constitute a “publicly traded partnership” under section 7704 of the Code. If and when the General Partner determines that imposing such restrictions is necessary, the General Partner shall give prompt written
notice thereof (a “Restriction Notice”) to each of the Limited Partners holding Partnership Units, which notice shall be accompanied by a copy of an opinion of counsel to the Partnership which states that, in the opinion of such counsel,
restrictions are necessary in order to avoid having the Partnership be treated as a “publicly traded partnership” under section 7704 of the Code. 

(f) A redemption fee may be charged (other than to the Adviser, Special Limited Partner or their Affiliates) in connection with an exercise of
Redemption Rights pursuant to this Section 8.5. 
 8.6. Required Redemption of Limited Partners.

 The General Partner, in its sole discretion, may require a Limited Partner to surrender all or any portion of its Partnership Units and withdraw from the
Partnership to the extent such redemption is in the best interest of the Partnership, as determined by the General Partner in good faith at any time for any reason or no reason with or without prior notice to such Limited Partner. A notice of
mandatory redemption pursuant to this Section 8.6 shall 

  
 29 

Table of Contents

 
have the same effect as a request for redemption by a Limited Partner given pursuant to Section 8.5; provided that the mandatory redemption of all or any portion of such Limited
Partner’s Partnership Units shall be effective on the date determined by the General Partner and indicated in such notice. 
 
8.7. Registration of Common Stock. 
 With respect to any REIT Shares that may be issued to the Adviser or the Special Limited
Partner upon the Redemption of Class I Units pursuant to Section 8.5 (“Redemption Shares”), within six months after a Listing of the Redemption Shares, the Adviser, the Special Limited Partner and the General Partner covenant and
agree to negotiate in good faith and enter into a registration rights agreement for the Redemption Shares with terms mutually agreeable to the Adviser, the Special Limited Partner and the General Partner. Such registration rights agreement shall be
in customary form for agreements of this type entered into by REITs with institutional investors prior to an initial public offering and will provide for: (a) a long-form “demand” registration right exercisable once by the Adviser and
once by the Special Limited Partner; (b) “shelf” registration rights so long as Form S-3 is available to the General Partner; (c) “piggy-back” registration rights; and (d) in the event
of “underwriters’ cut-backs” in relation to a demand registration, a shelf registration or any piggyback registration, the ability of the General Partner to reduce the number of Redemption
Shares to be registered on a pro rata basis with other registering stockholders. 
 ARTICLE 9 

TRANSFERS OF LIMITED PARTNERSHIP INTERESTS 

9.1. Purchase for Investment. 

(a) Each Limited Partner hereby represents and warrants to the General Partner and to the Partnership that the acquisition of his Partnership
Interest is made as a principal for his account for investment purposes only and not with a view to the resale or distribution of such Partnership Interest. 

(b) Each Limited Partner agrees that he will not sell, assign or otherwise transfer his Partnership Interest or any fraction thereof, whether
voluntarily or by operation of law or at judicial sale or otherwise, to any Person who does not make the representations and warranties to the General Partner set forth in Section 9.1(a) above and similarly agree not to sell, assign or transfer
such Partnership Interest or fraction thereof to any Person who does not similarly represent, warrant and agree. 

9.2. Restrictions on Transfer of Limited Partnership Interests. 

(a) Subject to the provisions of Section 9.2(b) and (c), no Limited Partner may offer, sell, assign, hypothecate, pledge or otherwise
transfer all or any portion of its Limited Partnership Interest, or any of such Limited Partner’s economic rights as a Limited Partner, whether voluntarily or by operation of law or at judicial sale or otherwise (collectively, a
“Transfer”) without the consent of the General Partner, which consent may be granted or withheld in its sole and absolute discretion; provided that the Special Limited Partner may transfer all or any portion of its Limited Partnership
Interest, or any of its economic rights as a Limited Partner, to any of its Affiliates without the consent of the General Partner. Any such purported transfer undertaken without such consent shall be considered to be null and void ab initio
and shall not be given effect. The General Partner may require, as a condition of any Transfer to which it consents, that the transferor assume all costs incurred by the Partnership in connection therewith. 

(b) No Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer (i.e., a Transfer consented to as
contemplated by clause (a) above or clause (c) below or a Transfer pursuant to Section 9.5 below) of all of its Partnership Interest pursuant to this Article 9 or pursuant to a redemption of all of its Partnership Units pursuant to
Section 8.5. Upon the permitted Transfer or redemption of all of a Limited Partner’s Partnership Interest, such Limited Partner shall cease to be a Limited Partner. 

(c) Notwithstanding Section 9.2(a) and subject to Sections 9.2(d), (e) and (f) below, a Limited Partner may Transfer, without the
consent of the General Partner, all or a portion of its Partnership Interest to (i) a parent or parent’s spouse, natural or adopted descendant or descendants, spouse of such descendant, or brother or sister, or a trust created by such
Limited Partner for the benefit of such Limited Partner and/or any such person(s), of which 

  
 30 

Table of Contents

 
trust such Limited Partner or any such person(s) is a trustee, (ii) a corporation controlled by a Person or Persons named in (i) above, or (iii) if the Limited Partner is an
entity, its beneficial owners. 
 (d) No Limited Partner may effect a Transfer of its Limited Partnership Interest, in whole or in part,
without the consent of the General Partner, which may be withheld in its sole and absolute discretion, if, in the opinion of legal counsel for the Partnership, such proposed Transfer would require the registration of the Limited Partnership Interest
under the Securities Act or would otherwise violate any applicable federal or state securities or blue sky law (including investment suitability standards). 

(e) No Transfer by a Limited Partner of its Partnership Interest, in whole or in part, may be made to any Person without the consent of the
General Partner, which may be withheld in its sole and absolute discretion, if (i) in the opinion of legal counsel for the Partnership, the transfer would result in the Partnership’s being treated as an association taxable as a corporation
(other than a qualified REIT subsidiary within the meaning of Section 856(i) of the Code and the General Partner determines such treatment would be in the best interest of the Partnership), (ii) in the opinion of legal counsel for the
Partnership, it would adversely affect the ability of the General Partner to continue to qualify as a REIT or subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, (iii) in the opinion of
legal counsel for the Partnership, the transfer would cause the Partnership not to qualify for the safe harbor described in U.S. Treasury Regulations Section 1.7704-1(h), (iv) the transfer would result in
the Partnership at any time during its taxable year having more than 100 partners, within the meaning of Section 1.7704-1(h)(1)(ii) of the U.S. Treasury Regulations (taking into account Section 1.7704-1(h)(3) of the U.S. Treasury Regulations), or (v) such transfer is effectuated through an “established securities market” or a “secondary market (or the substantial equivalent
thereof)” within the meaning of Section 7704 of the Code. 
 (f) No transfer by a Limited Partner of any Partnership Interest may
be made to a lender to the Partnership or any Person who is related (within the meaning of Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse liability
(within the meaning of Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in its sole and absolute discretion, provided that as a condition to such
consent the lender may be required to enter into an arrangement with the Partnership and the General Partner to exchange or redeem for the Cash Amount any Partnership Units in which a security interest is held simultaneously with the time at which
such lender would be deemed to be a Partner in the Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code. 

(g) Any Transfer in contravention of any of the provisions of this Article 9 shall be void and ineffectual and shall not be binding upon, or
recognized by, the Partnership. 
 (h) Prior to the consummation of any Transfer under this Article 9, the transferor and/or the transferee
shall deliver to the General Partner such opinions, certificates and other documents as the General Partner shall request in connection with such Transfer. 

9.3. Admission of Substitute Limited Partner. 

(a) Subject to the other provisions of this Article 9, an assignee of the Limited Partnership Interest of a Limited Partner (which shall be
understood to include any purchaser, transferee, donee, or other recipient of any disposition of such Limited Partnership Interest) shall be deemed admitted as a Limited Partner of the Partnership only with the consent of the General Partner and
upon the satisfactory completion of the following: 
 (i) The assignee shall have accepted and agreed to be bound by the terms and provisions of this
Agreement by executing a counterpart or an amendment thereof and such other documents or instruments as the General Partner may require in order to effect the admission of such Person as a Limited Partner. 

(ii) To the extent required, an amended Certificate evidencing the admission of such Person as a Limited Partner shall have been signed, acknowledged and
filed for record in accordance with the Act. 
 (iii) The assignee shall have delivered a letter containing the representation set forth in
Section 9.1(a) hereof and the agreement set forth in Section 9.1(b) hereof. 

  
 31 

Table of Contents

 (iv) If the assignee is a corporation, partnership or trust, the assignee shall have provided the General
Partner with evidence satisfactory to counsel for the Partnership of the assignee’s authority to become a Limited Partner under the terms and provisions of this Agreement. 

(v) The assignee shall have executed a power of attorney containing the terms and provisions set forth in Section 8.2 hereof. 

(vi) The assignee shall have paid all legal fees and other expenses of the Partnership and the General Partner and filing and publication costs in connection
with its substitution as a Limited Partner. 
 (vii) The assignee has obtained the prior written consent of the General Partner to its admission as a
Substitute Limited Partner, which consent may be given or denied in the exercise of the General Partner’s sole and absolute discretion. 

(b) For the purpose of allocating Profits and Losses and distributing cash received by the Partnership, a Substitute Limited Partner shall be
treated as having become, and appearing in the records of the Partnership as, a Partner upon the filing of the Certificate described in Section 9.3(a)(ii) hereof or, if no such filing is required, the later of the date specified in the transfer
documents or the date on which the General Partner has received all necessary instruments of transfer and substitution. 
 (c) The General
Partner shall cooperate with the Person seeking to become a Substitute Limited Partner by preparing the documentation required by this Section and making all official filings and publications. The Partnership shall take all such action as promptly
as practicable after the satisfaction of the conditions in this Article 9 to the admission of such Person as a Limited Partner of the Partnership. 
 
9.4. Rights of Assignees of Partnership Interests. 
 (a) Subject to the provisions of Sections 9.1 and 9.2 hereof,
except as required by operation of law, the Partnership shall not be obligated for any purposes whatsoever to recognize the assignment by any Limited Partner of its Partnership Interest until the Partnership has received notice thereof. 

(b) Any Person who is the assignee of all or any portion of a Limited Partner’s Limited Partnership Interest, but does not become a
Substitute Limited Partner and desires to make a further assignment of such Limited Partnership Interest, shall be subject to all the provisions of this Article 9 to the same extent and in the same manner as any Limited Partner desiring to make an
assignment of its Limited Partnership Interest. 
 9.5. Effect of Bankruptcy, Death, Incompetence or
Termination of a Limited Partner. The occurrence of an Event of Bankruptcy as to a Limited Partner, the death of a Limited Partner or a final adjudication that a Limited Partner is incompetent (which term shall include, but not be limited
to, insanity) shall not cause the termination or dissolution of the Partnership, and the business of the Partnership shall continue if an order for relief in a bankruptcy proceeding is entered against a Limited Partner, the trustee or receiver of
his estate or, if he dies, his executor, administrator or trustee, or, if he is finally adjudicated incompetent, his committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose of settling or managing his estate
property and such power as the bankrupt, deceased or incompetent Limited Partner possessed to assign all or any part of his Partnership Interest and to join with the assignee in satisfying conditions precedent to the admission of the assignee as a
Substitute Limited Partner. 
 9.6. Joint Ownership of Interests. A Partnership Interest may be
acquired by two individuals as joint tenants with right of survivorship, provided that such individuals either are married or are related and share the same home as tenants in common. The written consent or vote of both owners of any such jointly
held Partnership Interest shall be required to constitute the action of the owners of such Partnership Interest; provided, however, that the written consent of only one joint owner will be required if the Partnership has been provided with evidence
satisfactory to the counsel for the Partnership that the actions of a single joint owner can bind both owners under the applicable laws of the state of residence of such joint owners. Upon the death of one owner of a Partnership Interest held in a
joint tenancy with a right of survivorship, the Partnership Interest shall become owned solely by the survivor as a Limited Partner and not as an assignee. The Partnership need not recognize the death of one of the owners of a jointly-held
Partnership Interest until it shall have received notice of such death. Upon notice to the General Partner 

  
 32 

Table of Contents

 
from either owner, the General Partner shall cause the Partnership Interest to be divided into two equal Partnership Interests, which shall thereafter be owned separately by each of the former
owners. 
 ARTICLE 10 

BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS 

10.1. Books and Records. At all times during the continuance of the Partnership, the Partners shall
keep or cause to be kept at the Partnership’s specified office true and complete books of account in accordance with generally accepted accounting principles, including: (a) a current list of the full name and last known business address
of each Partner, (b) a copy of the Certificate of Limited Partnership and all Certificates of amendment thereto, (c) copies of the Partnership’s federal, state and local income tax returns and reports, (d) copies of this
Agreement and amendments thereto and any financial statements of the Partnership for the three most recent years and (e) all documents and information required under the Act. Any Partner or its duly authorized representative, upon paying the
costs of collection, duplication and mailing, shall be entitled to inspect or copy such records during ordinary business hours. 
 
10.2. Custody of Partnership Funds; Bank Accounts. 
 (a) All funds of the Partnership not otherwise invested shall
be deposited in one or more accounts maintained in such banking or brokerage institutions as the General Partner shall determine, and withdrawals shall be made only on such signature or signatures as the General Partner may, from time to time,
determine. 
 (b) All deposits and other funds not needed in the operation of the business of the Partnership may be invested in any manner
determined by the General Partner in its sole discretion. The funds of the Partnership shall not be commingled with the funds of any other Person except for such commingling as may necessarily result from an investment permitted by this
Section 10.2(b). 
 10.3. Fiscal and Taxable Year. The fiscal and taxable year of the
Partnership shall be the calendar year. 
 10.4. Annual Tax Information and Report. Within 75 days
after the end of each fiscal year of the Partnership (subject to reasonable delays in the event of the late receipt of any necessary financial statements of the Person in which the Partnership holds a Property), the General Partner shall furnish to
each person who was a Limited Partner at any time during such year the tax information necessary to file such Limited Partner’s individual tax returns as shall be reasonably required by law. 

10.5. Partnership Representative; Tax Elections; Special Basis Adjustments. 

(a) The General Partner shall act as or appoint the “Partnership Representative” within the meaning of Section 6223(a) of the
Code and, in each case, any similar provisions under any state, local or foreign tax law. As Partnership Representative, as applicable, the General Partner (or its appointee) shall have the right and obligation to take all actions authorized and
required, respectively, by the Code for the Partnership Representative. For the avoidance of doubt, without limiting the generality of the foregoing, the General Partner (or its appointee), in its capacity as Partnership Representative, shall have
the power in its sole and absolute discretion to:  
 (i)    if the Partnership qualifies to elect pursuant to
Section 6221(b) of the Code to have federal income tax audits and other proceedings undertaken by each Partner rather than by the Partnership, cause the Partnership to make such election or refrain from making such election, or 

(ii)    if the Partnership does not or is unable to make the election in preceding clause (i), and the Service proposes an
adjustment in the amount of any item of income, gain, loss, deduction, or credit of the Partnership’s or any Partner’s distributive share thereof which results in an “imputed underpayment” as defined in Section 6225(b) of
the Code, cause the Partnership to elect, if such election is available, to apply the alternative method provided under Section 6226 of the Code (the “Push-Out Election”) or cause the
Partnership to refrain from making the Push-Out Election. 

  
 33 

Table of Contents

 (b) The General Partner (or its appointee) shall have the right to retain professional
assistance in respect of any audit of the Partnership by the Service and all out-of-pocket expenses and fees incurred by the General Partner (or its appointee) on behalf
of the Partnership as Partnership Representative, as applicable, shall constitute Partnership expenses. 
 (c) All elections required or
permitted to be made by the Partnership or the Partnership Representative under the Code or any applicable state, local or foreign tax law shall be made by the General Partner in its sole and absolute discretion. For the avoidance of doubt, without
limiting the generality of the foregoing, the General Partner shall have the power in its sole and absolute discretion to determine the manner in which the Partnership will allocate income, gain, loss, and deduction with respect to property
contributed by a Partner to the Partnership so as to take into account any variation between the adjusted tax basis of the property and its fair market value at the time of contribution in accordance with the requirements of Section 704(c) of
the Code and U.S. Treasury Regulations Sections 1.704-3 and, in furtherance thereof, to elect any method of allocation that, under U.S. Treasury Regulations Sections
1.704-3, is considered a reasonable method consistent with the purpose of section 704(c) of the Code. 

(d) In the event of a transfer of all or any part of the Partnership Interest of any Partner, the Partnership, at the option of the General
Partner, may elect pursuant to Section 754 of the Code to adjust the basis of the Partnership’s assets. Notwithstanding anything contained in Article 5, any adjustments made pursuant to Section 754 of the Code shall affect only the
successor in interest to the transferring Partner and in no event shall be taken into account in establishing, maintaining or computing Capital Accounts for the other Partners for any purpose under this Agreement. Each Partner will furnish the
Partnership with all information necessary to give effect to such election. 
 10.6. Reports to Limited
Partners. As soon as practicable after the close of each fiscal year, but in no event later than the date on which the General Partner mails its annual report to holders of the REIT Shares, the General Partner shall cause to be mailed to
each Limited Partner an annual report containing financial statements of the Partnership, or of the General Partner if such statements are prepared solely on a consolidated basis with the General Partner, for such fiscal year, presented in
accordance with generally accepted accounting principles. The annual financial statements shall be audited by accountants selected by the General Partner. 

ARTICLE 11 

AMENDMENT OF AGREEMENT; MERGER 

The General Partner’s consent shall be required for any amendment to this Agreement. The General Partner, without the consent of the Limited Partners,
may amend this Agreement in any respect or merge or consolidate the Partnership with or into any other partnership or business entity (as defined in Section 17-211 of the Act) in a transaction pursuant to
Section 7.1(b), (c) or (d) hereof; provided, however, that the following amendments and any other merger or consolidation of the Partnership shall require the consent of Limited Partners holding more than 50% of the Percentage Interests of
the Limited Partners: 
 (a) any amendment affecting the operation of the Redemption Right (except as provided in Section 8.5(d),
7.1(b) or 7.1(c)) in a manner adverse to the Limited Partners; 
 (b) any amendment that would adversely affect the rights of the Limited
Partners to receive the distributions payable to them hereunder, other than with respect to the issuance of additional Partnership Units pursuant to Section 4.3; 

(c) any amendment that would alter the Partnership’s allocations of Profit and Loss to the Limited Partners, other than with respect to
the issuance of additional Partnership Units pursuant to Section 4.3; or 
 (d) any amendment that would impose on the Limited Partners
any obligation to make additional Capital Contributions to the Partnership. 

  
 34 

Table of Contents

 ARTICLE 12 

GENERAL PROVISIONS 
 
12.1. Notices. All communications required or permitted under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or upon deposit in the United States mail, registered, postage
prepaid return receipt requested, to the Partners at the addresses set forth on the Partnership’s books and records; provided, however, that any Partner may specify a different address by notifying the General Partner in writing of such
different address. Notices to the Partnership shall be delivered at or mailed to its specified office. 
 12.2.
Survival of Rights. Subject to the provisions hereof limiting transfers, this Agreement shall be binding upon and inure to the benefit of the Partners and the Partnership and their respective legal representatives, successors,
transferees and assigns. 
 12.3. Additional Documents. Each Partner agrees to perform all further
acts and execute, swear to, acknowledge and deliver all further documents which may be reasonable, necessary, appropriate or desirable to carry out the provisions of this Agreement or the Act. 

12.4. Severability. If any provision of this Agreement shall be declared illegal, invalid, or
unenforceable in any jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof. 

12.5. Entire Agreement. This Agreement and exhibits attached hereto constitute the entire Agreement of
the Partners and supersede all prior written agreements (including the Prior Agreement) and prior and contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. 

12.6. Pronouns and Plurals. When the context in which words are used in the Agreement indicates that
such is the intent, words in the singular number shall include the plural and the masculine gender shall include the neuter or female gender as the context may require. 

12.7. Headings. The Article headings or sections in this Agreement are for convenience only and shall
not be used in construing the scope of this Agreement or any particular Article. 
 12.8.
Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the same instrument binding on all parties hereto,
notwithstanding that all parties shall not have signed the same counterpart. 
 12.9. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware; provided, however, that any cause of action for any violation of federal or state securities laws shall not be governed by this
Section 12.9. 

  
 35 

Table of Contents

 IN WITNESS WHEREOF, the parties hereto have hereunder affixed their signatures to this
Amended and Restated Agreement of Limited Partnership, all as of the date first set forth above. 
  

					
	GENERAL PARTNER:
	
	KBS Real Estate Investment Trust III, Inc.
	By:	    		 	 /s/

		    		 	Name:
		    		 	Title:

  

					
	SPECIAL LIMITED PARTNER:
			
	By:	    		 	 /s/

		    		 	Name:
		    		 	Title:

  

					
	 LIMITED PARTNERS:

	
	By:   KBS Real Estate Investment Trust III, Inc., as attorney-in-fact for the Persons whose names are set forth in the books and
records of the Partnership as Limited Partners

 
					
			
	By:	    		 	 /s/

		    		 	Name:
		    		 	Title:

  
 36 

Table of Contents

 EXHIBIT A 

NOTICE OF EXERCISE OF REDEMPTION RIGHT 

In accordance with Section 8.5 of the Limited Partnership Agreement (the “Agreement”) of KBS Limited Partnership III, the undersigned hereby
irrevocably (i) presents for redemption Partnership Units in KBS Limited Partnership III in accordance with the terms of the Agreement and the Redemption Right referred to in Section 8.5 thereof, (ii) surrenders such Partnership Units
and all right, title and interest therein, and (iii) directs that the Cash Amount or REIT Shares Amount (as defined in the Agreement) as determined by the General Partner deliverable upon exercise of the Redemption Right be delivered to the
address specified below, and if REIT Shares (as defined in the Agreement) are to be delivered, such REIT Shares be registered or placed in the name(s) and at the address(es) specified below. 

 

			
	   Dated:
	  	
		
		  	 (Name of Limited Partner)

		
		  	 (Signature of Limited Partner)

		
		  	 (Mailing Address)

		
		  	 (City) (State) (Zip Code)

		
		  	 Signature Guaranteed by:

  

	
	 If REIT Shares are to be issued, issue to:

 
 Name:

 
 Social Security or

Tax I.D. Number:

  
 A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}]]