TIAA Appl. #CA-3207
(Note No. 1)
$20,000,000.00 El Segundo, California March 11, 1999
FOR VALUE RECEIVED, KILROY REALTY, L.P., a Delaware limited partnership ("Borrower"),having its
principal place of business at 2250 East Imperial Highway, El Segundo, California 90245, promises to pay to
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA ("Lender"), a New York
corporation, or order, at Lender's offices at 730 Third Avenue, New York, New York 10017 or at such other
place as Lender designates in writing, the principal sum of Twenty Million Dollars ($20,000,000.00) (the
principal sum or so much of the principal sum as may be advanced and outstanding from time to time, whichever
is less, the "Principal"), in lawful money of the United States of America, with interest on the Principal from and
after the date advanced at the fixed rate of seven and two-tenths percent (7.20%) per annum (the "Fixed Interest
Rate") and as otherwise provided herein.
This Promissory Note (the "Note") is one of nine promissory notes
executed and delivered by Borrower evidencing a loan (the "Loan") in the
original aggregate amount of Ninety-Five Million Dollars ($95,000,000.00) (the
"Notes"). This Note is secured by, among other things, nine Deeds of Trust, Assignments of Leases and Rents,
Security Agreements and Fixture Filing Statements (the "Deeds of Trust"), dated the date of this Note, made by
Borrower for the benefit of Lender as security for the Loan. The Deed of Trust which, in its Recitals, identifies
this Note as the "Related Note" is referred to herein as the "Related Deed of Trust". All capitalized terms not
expressly defined in this Note will have the definitions set forth in the Related Deed of Trust.
Section 1. Payments of Principal and Fixed Interest.
(a) Borrower will make monthly installment payments ("Debt Service Payments") as follows:
(i) On April 1, 1999, a payment of accrued interest on the Principal at the Fixed Interest Rate; an