Document:

EXHIBIT 10.3

 Exhibit 10.3 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is dated this 27th day of March 2006, between Home Bank, a
federally-chartered mutual savings bank located in Lafayette, Louisiana (the “Bank” or the “Employer”) and L. J. Dailey (the “Executive”). 
 WITNESSETH 
 WHEREAS, the Bank and Crowley Building and Loan Association (“CB&L”) have
entered into an Agreement and Plan of Reorganization, dated as of March 27, 2006 (the “Merger Agreement”) pursuant to which CB&L will merge with and into the Bank (the “Bank”); 
 WHEREAS, the Executive is currently the Vice President and Secretary of CB&L; 
 WHEREAS, the Bank desires to retain the services of the Executive after the effective date of the Merger; and 
 WHEREAS, the Executive is willing to serve the Bank on the terms and conditions hereinafter set forth; 
 NOW THEREFORE, in consideration of the mutual agreements herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows: 
 1. Definitions. The following words and terms shall have the meanings set forth below for the purposes of
this Agreement: 
 (a) Annual Compensation. The Executive’s “Annual Compensation” for purposes of this Agreement shall
be deemed to mean the sum of the Executive’s then current annual rate of base salary and any cash bonus paid to the Executive by the Employer for the calendar year immediately preceding the calendar year in which the Date of Termination occurs.

 (b) Base Salary. “Base Salary” shall have the meaning set forth in Section 3(a) hereof. 
 (c) Cause. Termination of the Executive’s employment for “Cause” shall mean termination because of personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order or material breach of any provision of this Agreement. 
 (d) Code. “Code” shall mean the Internal
Revenue Code of 1986, as amended. 

 (e) Date of Termination. “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date specified in the Notice of Termination, and (ii) if the Executive’s employment is terminated for any other reason, the date on which a Notice of Termination is
given or as specified in such Notice. 
 (f) Disability. “Disability” shall be deemed to have occurred if the Executive:
(i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12
months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health plan covering employees of the Employer. 
 (g) Effective
Date. The “Effective Date” of the Agreement shall be the date that the Merger is completed and becomes effective pursuant to the terms of the Merger Agreement. If the Merger is terminated for any reason, then this Agreement shall be
null and void. 
 (h) Employment Period. The Executive’s “Employment Period” under this Agreement shall be for a period
of three years commencing on the Effective Date, subject to extension pursuant to Section 2(a) hereof or earlier termination as provided herein. 
 (i) Good Reason. “Good Reason” shall mean the occurrence of any of the following events during the Employment Period: 
  

	 	(i)	Without the Executive’s express written consent, a material reduction by the Employer in the Executive’s Base Salary as the same may be increased from time to time or,
except pursuant to the terms of the applicable plan or to the extent permitted by Section 3(b) hereof, a reduction in the package of fringe benefits provided to the Executive, taken as a whole; 

  

	 	(ii)	Any purported termination of the Executive’s employment for Disability or Retirement which is not effected pursuant to a Notice of Termination satisfying the requirements of
paragraph (k) below; 

  

	 	(iii)	The failure by the Employer to obtain the assumption of and agreement to perform this Agreement by any successor as contemplated in Section 9 hereof; or

  

	 	(iv)	Without the Executive’s express written consent, the failure to elect or to re-elect or to appoint or to re-appoint the Executive to the offices of First Vice President and
Crowley City President of the Employer or a material adverse change made by the Employer in the Executive’s functions, duties or responsibilities as First Vice President and Crowley City President of the Employer. 

  

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 (j) IRS. IRS shall mean the Internal Revenue Service. 
 (k) Notice of Termination. Any purported termination of the Executive’s employment by the Employer for any reason, including without
limitation for Cause, Disability or Retirement, or by the Executive for any reason, including without limitation for Good Reason, shall be communicated by written “Notice of Termination” to the other party hereto. For purposes of this
Agreement, a “Notice of Termination” shall mean a dated notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the provision so indicated, (iii) specifies a Date of Termination, which shall be not less than thirty (30) nor more than ninety (90) days after such Notice of
Termination is given, except in the case of the Employer’s termination of the Executive’s employment for Cause, which shall be effective immediately; and (iv) is given in the manner specified in Section 10 hereof. 
 (l) Retirement. “Retirement” shall mean voluntary termination by the Executive in accordance with the Employer’s retirement
policies, including early retirement, generally applicable to its salaried employees. 
 2. Term of Employment. 
 (a) The Employer hereby employs the Executive as First Vice President and Crowley City President, and the Executive hereby accepts said employment and
agrees to render such services to the Employer on the terms and conditions set forth in this Agreement. The term of this Agreement shall be a period of three years commencing as of the Effective Date subject to earlier termination or extension as
provided herein. On each day during the Employment Period, the Employment Period shall automatically be extended for one additional day, unless either the Employer or the Executive elects not to extend the Agreement further by giving written notice
thereof to the other party, in which case the Employment Period shall end on the third anniversary of the date on which such written notice is given, provided that no daily extensions shall be made subsequent to December 31, 2008. As a result,
the term of this Agreement shall not be extended beyond December 31, 2011. Upon termination of the Executive’s employment with the Employer for any reason whatsoever, any daily extensions provided pursuant to this Section 2(a), if not
theretofore discontinued, shall automatically cease. The Board of Directors of the Employer shall review on a periodic basis (and no less frequently than annually) whether to permit further extensions of the term of this Agreement. As part of such
review, the Board of Directors shall consider all relevant factors, including the Executive’s performance hereunder, and shall either expressly approve further extensions of the time of this Agreement or decide to provide notice to the
contrary. 
 (b) During the term of this Agreement, the Executive shall perform such executive services for the Employer as may be consistent
with his titles and from time to time assigned to him by the Employer’s President. 
  

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 3. Compensation and Benefits. 
 (a) The Employer shall compensate and pay the Executive for his services during the term of this Agreement at a minimum base salary of $75,000 per year
(“Base Salary”), which may not be decreased without the Executive’s express written consent. In addition to his Base Salary, the Executive shall be entitled to receive during the term of this Agreement such bonus payments as may be
determined by the President of the Employer. 
 (b) During the Employment Period, the Executive shall be entitled to participate in and
receive the benefits of any pension or other retirement benefit plan, profit sharing plan or other plans, benefits and privileges given to employees and executives of the Employer, to the extent commensurate with his then duties and
responsibilities. The Employer shall not make any changes in such plans, benefits or privileges which would adversely affect the Executive’s rights or benefits thereunder, unless such change occurs pursuant to a program applicable to all
executive officers of the Employer and does not result in a proportionately greater adverse change in the rights of or benefits to the Executive as compared with any other executive officer of the Employer. Nothing paid to the Executive under any
plan or arrangement presently in effect or made available in the future shall be deemed to be in lieu of the salary payable to the Executive pursuant to Section 3(a) hereof. 
 (c) During the Employment Period, the Executive shall be entitled to paid annual vacation in accordance with the policies as established from time to
time by the Employer. The Executive shall not be entitled to receive any additional compensation from the Employer for failure to take a vacation, nor shall the Executive be able to accumulate unused vacation time from one year to the next, except
to the extent authorized by the Employer. 
 (d) During the Employment Period, the Employer shall provide the Executive with the use of an
automobile. The Employer shall pay for all costs of insurance coverage, repairs, maintenance and other incidental expenses, including license, fuel and oil, related to the Executive’s business use of the automobile, subject to such reasonable
documentation and other limitations as may be established by the Employer. 
 4. Expenses. The Employer shall reimburse the Executive
or otherwise provide for or pay for all reasonable expenses incurred by the Executive in furtherance of or in connection with the business of the Employer, including, but not by way of limitation, traveling expenses and all reasonable entertainment
expenses, subject to such reasonable documentation and other limitations as may be established by the Employer. If such expenses are paid in the first instance by the Executive, the Employer shall reimburse the Executive therefor. 
 5. Termination. 
 (a) The Employer
shall have the right, at any time upon prior Notice of Termination, to terminate the Executive’s employment hereunder for any reason, including without limitation termination for Cause, Disability or Retirement, and the Executive shall have the
right, upon prior Notice of Termination, to terminate his employment hereunder for any reason. 
  

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 (b) In the event that (i) the Executive’s employment is terminated by the Employer for Cause or
(ii) the Executive terminates his employment hereunder other than for Disability, Retirement, death or Good Reason, the Executive shall have no right pursuant to this Agreement to compensation or other benefits for any period after the
applicable Date of Termination. 
 (c) In the event that the Executive’s employment is terminated as a result of Disability, Retirement
or the Executive’s death during the term of this Agreement, the Executive shall have no right pursuant to this Agreement to compensation or other benefits for any period after the applicable Date of Termination. 
 (d) In the event that (i) the Executive’s employment is terminated by the Association for other than Cause, Disability, Retirement or the
Executive’s death or (ii) such employment is terminated by the Executive for Good Reason, then the Employer shall, subject to the provisions of Section 6 hereof, if applicable: 
 (1) pay to the Executive, in a lump sum within 10 business days of the Date of Termination, a cash severance amount equal to the Annual
Compensation that would have been paid to the Executive for the then remaining Employment Period; and 
 (2) maintain and
provide for a period ending at the earlier of (i) the expiration of the remaining Employment Period prior to the Notice of Termination or (ii) the date of the Executive’s full-time employment by another employer (provided that the
Executive is entitled under the terms of such employment to benefits substantially similar to those described in this subparagraph (2)), at no cost to the Executive, the Executive’s continued participation in all group insurance, life
insurance, health and accident insurance, and disability insurance offered by the Employer in which the Executive was entitled to participate immediately prior to the Date of Termination, provided that in the event that the Executive’s
participation in any plan, program or arrangement as provided in this subparagraph (2) is barred, or during such period any such plan, program or arrangement is discontinued or the benefits thereunder are materially reduced, the Employer shall
arrange to provide the Executive with benefits substantially similar to those which the Executive was entitled to receive under such plans, programs and arrangements immediately prior to the Date of Termination; and provided further, that if the
provision of any of the benefits covered by this Section 5(d)(2) would trigger the 20% excise tax and interest penalties under Section 409A of the Code either due to the nature of such benefit or the length of time it is being provided,
then the benefit(s) that would trigger such tax and interest penalties due to the nature of the benefit shall not be provided at all and the benefit(s) that would trigger the tax and interest penalties if provided beyond the “limited period of
time” set forth in the regulations under Section 409A shall not be provided beyond such limited period of time (collectively, the “Excluded Benefits”), and in lieu of the Excluded Benefits the Employer shall pay to the Executive,
in a lump sum within 30 days following termination of employment or within 30 days after such determination should it occur after termination of employment, a cash amount equal to the cost to the Employer of providing the Excluded Benefits.

  

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 6. Limitation of Benefits under Certain Circumstances. If the payments and benefits pursuant to
Section 5 hereof, either alone or together with other payments and benefits which the Executive has the right to receive from the Employer would constitute a “parachute payment” under Section 280G of the Code, the payments and
benefits payable by the Employer pursuant to Section 5 hereof shall be reduced by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits payable by the Employer under Section 5 being
non-deductible to the Employer pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. If the payments and benefits are required to be reduced, the cash severance shall be reduced first,
followed by a reduction in the fringe benefits. The determination of any reduction in the payments and benefits to be made pursuant to Section 5 shall be based upon the opinion of independent counsel selected by the Employer and paid by the
Employer. Such counsel shall promptly prepare the foregoing opinion, but in no event later than 10 business days from the Date of Termination; and may use such actuaries as such counsel deems necessary or advisable for the purpose. Nothing contained
herein shall result in a reduction of any payments or benefits to which the Executive may be entitled upon termination of employment under any circumstances other than as specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero. 
 7. Mitigation; Exclusivity of Benefits. 
 (a) The Executive shall not be required to mitigate the amount of any benefits hereunder by seeking other employment or otherwise, nor shall the amount
of any such benefits be reduced by any compensation earned by the Executive as a result of employment by another employer after the Date of Termination or otherwise, except as set forth in Section 5(d)(2) above. 
 (b) The specific arrangements referred to herein are not intended to exclude any other benefits which may be available to the Executive upon a
termination of employment with the Association pursuant to employee benefit plans of the Employer or otherwise. 
 8. Withholding. All
payments required to be made by the Employer hereunder to the Executive shall be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as the Employer may reasonably determine should be withheld pursuant to
any applicable law or regulation. 
 9. Assignability. The Employer may assign this Agreement and its rights and obligations hereunder
in whole, but not in part, to any corporation, association or other entity with or into which the Employer may hereafter merge or consolidate or to which the association may transfer all or substantially all of its assets, if in any such case said
corporation, association or other entity shall by operation of law or expressly in writing assume all obligations of the Employer hereunder as fully as if it had been originally made a party hereto, but may not otherwise assign this Agreement or its
rights and obligations hereunder. The Executive may not assign or transfer this Agreement or any rights or obligations hereunder. 
 10.
Notice. For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given 

  

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when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below:

  

			
	To the Employer:	  	Board of Directors
		  	Home Bank
		  	503 Kaliste Saloom
		  	Lafayette, Louisiana 70508
		
	To the Executive:	  	L. J. Dailey
		  	at the address last appearing on
		  	the personnel records of the Employer

 11. Amendment; Waiver. No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer or officers as may be specifically designated by the Board of Directors of the Employer to sign on its behalf; provided,
however, that if the Employer determines, after a review of the final regulations issued under Section 409A of the Code and all applicable Internal Revenue Code guidance, that this Agreement should be further amended to avoid triggering the tax
and interest penalties imposed by Section 409A of the Code, the Employer may amend this Agreement to the extent necessary to avoid triggering the tax and interest penalties imposed by Section 409A of the Code. No waiver by any party hereto
at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time. 
 12. Governing Law. The validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the United States where applicable and otherwise by the substantive laws of the State of Louisiana. 
 13.
Nature of Obligations. Nothing contained herein shall create or require the Employer to create a trust of any kind to fund any benefits which may be payable hereunder, and to the extent that the Executive acquires a right to receive benefits
from the Employer hereunder, such right shall be no greater than the right of any unsecured general creditor of the Employer. 
 14.
Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 15. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect. 
 16. Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  

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 17. Regulatory Prohibition. Notwithstanding any other provision of this Agreement to the contrary,
any payments made to the Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations promulgated
thereunder, including 12 C.F.R. Part 359. 
 18. Regulatory Actions. The following provisions shall be applicable to the parties
to the extent that they are required to be included in employment agreements between a savings association and its employees pursuant to Section 563.39(b) of the Regulations Applicable to All Savings Associations, 12 C.F.R. §563.39(b), or
any successor thereto, and shall be controlling in the event of a conflict with any other provision of this Agreement, including without limitation Section 5 hereof. 
 (a) If the Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Employer’s affairs pursuant to notice served under Section 8(e)(3) or Section 8(g)(1)
of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the Employer’s obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings.
If the charges in the notice are dismissed, the Employer may, in its discretion: (i) pay the Executive all or part of the compensation withheld while its obligations under this Agreement were suspended, and (ii) reinstate (in whole or in
part) any of its obligations which were suspended. 
 (b) If the Executive is removed from office and/or permanently prohibited from
participating in the conduct of the Employer’s affairs by an order issued under Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C. §§1818(e)(4) and (g)(1)), all obligations of the Employer under this Agreement shall
terminate as of the effective date of the order, but vested rights of the Executive and the Employer as of the date of termination shall not be affected. 
 (c) If the Employer is in default, as defined in Section 3(x)(1) of the FDIA (12 U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate as of the date of default, but vested rights of the
Executive and the Employer as of the date of termination shall not be affected. 
 (d) All obligations under this Agreement shall be
terminated pursuant to 12 C.F.R. §563.39(b)(5) (except to the extent that it is determined that continuation of the Agreement for the continued operation of the Employer is necessary): (i) by the Director of the Office of Thrift
Supervision (“OTS”), or his/her designee, at the time the Federal Deposit Insurance Corporation (“FDIC”) enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in
Section 13(c) of the FDIA (12 U.S.C. §1823(c)); or (ii) by the Director of the OTS, or his/her designee, at the time the Director or his/her designee approves a supervisory merger to resolve problems related to operation of the
Employer or when the Employer is determined by the Director of the OTS to be in an unsafe or unsound condition, but vested rights of the Executive and the Employer as of the date of termination shall not be affected. 
  

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 19. Payment of Costs and Legal Fees and Reinstatement of Benefits. In the event any dispute or
controversy arising under or in connection with the Executive’s termination is resolved in favor of the Executive, whether by judgment, arbitration or settlement, the Executive shall be entitled to the payment of (a) all reasonable legal
fees incurred by the Executive in resolving such dispute or controversy, and (2) any back-pay, including Base Salary, bonuses and any other cash compensation, fringe benefits and any compensation and benefits due to the Executive under this
Agreement. 
 20. Entire Agreement. This Agreement embodies the entire agreement between the Employer and the Executive with respect
to the matters agreed to herein. As of the Effective Date, any and all prior agreements between the Employer and the Executive with respect to the matters agreed to herein are hereby superseded and shall have no force or effect. 
 IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written. 
  

			
	HOME BANK
		
	By:  	 	/s/ John W. Bordelon
		 	John W. Bordelon, President and CEO
	
	EXECUTIVE
		
	By:	 	/s/ L. J. Dailey
		 	L. J. Dailey

  

 9Amended and Restated Escrow Agreement

 EXHIBIT 4.1 
 AMENDED AND RESTATED ESCROW AGREEMENT 
 First Republic Trust Company 
 1888 Century Park East 
 Los Angeles, CA 90067-1702
  

	 	Re:	KBS REAL ESTATE INVESTMENT TRUST II, INC. 

 Ladies and Gentlemen:

 KBS Real Estate Investment Trust II, Inc., a Maryland corporation (the “Company”), will issue in a public offering (the
“Offering”) up to 280,000,000 shares of its common stock (the “Shares”) pursuant to a Registration Statement on Form S-11 (the “Registration Statement”) filed by the Company
with the Securities and Exchange Commission (the “SEC”). KBS Capital Markets Group LLC, a California limited liability company (the “Dealer Manager”), will act as dealer manager for the Offering.

 The Company, the Dealer Manager and First Republic Trust Company (the “Escrow Agent”)are parties to that certain escrow agreement
dated as of February 22, 2008 (the “Original Escrow Agreement”) in connection with the public offering of the Company’s common stock. 
 In response to requirements imposed by the states of Oregon and Tennessee in connection with the registration of the Offering, the Company and the Dealer Manager wish to amend and restate the Original Escrow Agreement
to increase the minimum required capital amounts that must be received from Subscribers (as defined below) in those states before such amounts may be disbursed from the Escrow Account to the Company. 
 ACCORDINGLY, in reliance upon your representation and warranty that you are, and at all times during the term of this Agreement will be, deemed a “bank”
as that term is defined in Section 3(a)(6) of the Securities Exchange Act of 1934, as amended, the Company hereby appoints you as Escrow Agent for purposes of holding the proceeds from subscriptions for the Shares, on the terms and conditions
hereinafter set forth: 
 The following defined terms used in this Agreement shall have the meanings specified below: 
 “Agreement” shall mean this escrow agreement, as amended. 
 “Collected Funds” shall mean all funds received by the Escrow Agent that have cleared normal banking channels and are in the form of cash. 
 “Escrow Account” an interest-bearing deposit account entitled “ESCROW ACCOUNT FOR THE BENEFIT OF SUBSCRIBERS FOR COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST II, INC.” 

“Escrow Income” shall mean any interest income earned on funds deposited in the Escrow Account. 

 “Form W-9” shall mean an executed IRS Form W-9, which may be a substitute executed Form W-9 as
contained in the Company’s subscription agreement provided such substitute form is in conformity with all applicable IRS regulations. 
 “General Escrow Subscriber” shall mean any Subscriber that is not an OR Subscriber, a PA Subscriber or a TN Subscriber. 
 “KBS Affiliate” shall mean the Company, the Dealer Manager, KBS Capital Advisors, LLC and, with respect to the aforementioned entities, (i) any person or entity directly or indirectly controlling, controlled by,
or under common control with such entity; (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 entity; (iii) any entity for which such entity
acts as general partner; (iv) any entity 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such entity; and (v) any executive officer, director, trustee, or general
partner of such entity. 
 “Minimum Required Capital” shall mean aggregate gross proceeds of $2,500,000 attributable to Qualifying
Subscriptions received from General Escrow Subscribers. 
 “Offering End Date” shall mean the close of business on April 22,
2010; provided, however, that the Company retains the authority to change the Offering End Date and agrees to promptly notify you in writing of any such change. 
 “OR Subscriber” shall mean a Subscriber who (i) resides in Oregon or (ii) is physically present in Oregon when (A) such Subscriber receives an offer to purchase Shares that is directed into Oregon, or
(B) such Subscriber completes a subscription to purchase Shares in the Offering. 
 “PA Subscriber” shall mean a Subscriber who
(i) resides in Pennsylvania or (ii) is physically present in Pennsylvania when (A) such Subscriber receives an offer to purchase Shares that is directed into Pennsylvania, or (B) such Subscriber completes a subscription to
purchase Shares in the Offering. 
 “PA/OR Escrow Account” an interest-bearing sub-account to the Escrow Account, entitled
“ESCROW ACCOUNT FOR THE BENEFIT OF PENNSYLVANIA AND OREGON SUBSCRIBERS FOR COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST II, INC.” 
 “PA/OR Escrow Income” shall mean any interest income earned on funds deposited in the PA/OR Escrow Account. 
 “PA/OR Required Capital” shall mean aggregate gross proceeds of $66,700,000 attributable to Qualifying Subscriptions received from all Subscribers. 
 “Qualifying Subscription” shall mean a subscription received by the Company from a Subscriber, which the Company intends to accept upon satisfaction of the escrow conditions contained in this
Agreement. 
  

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 “Short-Term Investments” shall mean obligations of, or obligations guaranteed by, the United
States government, bank money market accounts or certificates of deposit of national or state banks that have deposits insured by the Federal Deposit Insurance Corporation (including certificates of deposit of any bank acting as a depository or
custodian for any such funds, including, without limitation, such certificates or instruments of American International Bank) that mature on or before the termination of the Offering, unless such instrument cannot be readily sold or otherwise
disposed of for cash by the termination of the Offering without any dissipation of the Offering proceeds invested. 
 The following securities are not
permissible Short-Term Investments: 

	(i)	money market mutual funds; 

	(ii)	corporate equity or debt securities; 

	(iii)	repurchase agreements; 

	(iv)	bankers’ acceptances; 

	(v)	commercial paper; and 

	(vi)	municipal securities. 

 “Subscriber” shall mean
any person, other than a KBS Affiliate, who subscribes to purchase Shares in the Offering. 
 “Threshold Date” shall mean
April 22, 2009, which is the first anniversary of the date that the SEC granted an effective order relating to the Registration Statement under Section 8(a) of the Securities Act of 1933, as amended. 
 “TN Escrow Account” an interest-bearing sub-account to the Escrow Account, entitled “ESCROW ACCOUNT FOR THE BENEFIT OF TENNESSEE SUBSCRIBERS
FOR COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST II, INC.” 
 “TN Escrow Income” shall mean any interest income earned on
funds deposited in the TN Escrow Account. 
 “TN Required Capital” shall mean aggregate gross proceeds of $5,00,000 attributable to
Qualifying Subscriptions received from General Escrow Subscribers and TN Subscribers. 
 “TN Subscriber” shall mean a Subscriber who
(i) resides in Tennessee or (ii) is physically present in Tennessee when (A) such Subscriber receives an offer to purchase Shares that is directed into Tennessee, or (B) such Subscriber completes a subscription to purchase Shares
in the Offering. 
 1.        (a)      Until the Company has received Qualifying
Subscriptions representing the Minimum Required Capital, and such funds are disbursed in accordance with Section 3 hereof, General Escrow Subscribers will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price
in the form of checks payable to the order of, “FIRST REPUBLIC TRUST COMPANY, AS ESCROW AGENT FOR KBS REAL ESTATE INVESTMENT TRUST II, INC.” Any checks from that are made payable to a party other than the Escrow Agent and that are received
prior to the time, if any, that the collected funds in the Escrow 

  

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Account are disbursed in accordance with Section 3 hereof, shall be returned to the Dealer Manager or soliciting dealer, as applicable, who submitted
the check. 
 (b)      Until the Company has received Qualifying Subscriptions representing the PA/OR Required
Capital, and such funds are disbursed in accordance with Section 3, PA Subscribers will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form of checks payable to the order of, “FIRST
REPUBLIC TRUST COMPANY, AS ESCROW AGENT FOR KBS REAL ESTATE INVESTMENT TRUST II, INC.” Any checks from PA Subscribers or OR Subscribers that are made payable to a party other than the Escrow Agent and that are received prior to the time, if
any, that the collected funds in the PA/OR Escrow Account are disbursed in accordance with Section 3 hereof, shall be returned to the Dealer Manager or soliciting dealer, as applicable, who submitted the check. 
 (c)      Until the Company has received Qualifying Subscriptions representing the TN Required Capital, and such funds are
disbursed in accordance with Section 3, TN Subscribers will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form of checks payable to the order of, “FIRST REPUBLIC TRUST COMPANY, AS ESCROW
AGENT FOR KBS REAL ESTATE INVESTMENT TRUST II, INC.” Any checks from TN Subscribers that are made payable to a party other than the Escrow Agent and that are received prior to the time, if any, that the collected funds in the TN Escrow Account
are disbursed in accordance with Section 3 hereof, shall be returned to the Dealer Manager or soliciting dealer, as applicable, who submitted the check. 
 (d)      By the end of the second business day after receipt of any check from the Offering, the Dealer Manager will transmit, or cause to be transmitted, to you: (i) an electronic
file in a compatible format containing the Subscriber’s name, address, number of shares purchased and purchase price remitted, (i) a statement identifying the Subscriber as an OR Subscriber, a PA Subscriber, a TN subscriber or a General
Escrow Subscriber, (iii) a statement confirming the receipt from such Subscriber of a Form W-9, and (iii) the check from such Subscriber. 
 2.        (a)      Within one business day following receipt of the materials specified in Section 1(d), including a check conforming to the requirements of 1(a),
(b), or (c), as applicable, you shall deposit such check into the Escrow Account (if such check is from a General Escrow Subscriber), the PA/OR Escrow Account (if such check is from a PA Subscriber or an OR Subscriber), or the TN Escrow Account (if
such check is from a TN Subscriber). 
 (b)      You agree to promptly process for collection the checks upon
deposit into the Escrow Account, the PA/OR Escrow Account or the TN Escrow Account (as applicable). You will hold, and separately account for, the deposited funds in the Escrow Account, the PA/OR Escrow Account and the TN Escrow Account until such
funds are disbursed in accordance with Section 3 hereof. If any of the checks are returned to you for nonpayment prior to receipt by you of the Minimum Required Capital or, in connection with subscriptions from OR Subscribers, PA Subscribers or
TN Subscribers, prior to receipt by you of the PA/OR Required Capital or the TN Required Capital, respectively, you shall promptly notify the Dealer Manager and the Company in writing of such nonpayment, and you are authorized to debit the
applicable account in an amount equal to such return payment (including any interest earned thereon), and to bill the 

  

 4 

 
Company for the returned check fee set forth on Exhibit B. 
 3.        (a)      (i)      Subject to the provisions of Sections 3(b) and 3(d) below, once the collected funds in the Escrow Account are of
an amount equal to or greater than the Minimum Required Capital, and upon receiving written instructions from the Company for disbursement of the funds, you shall (A) disburse to the Company, by check or wire transfer, the funds in the Escrow
Account representing the gross purchase price for the Shares, and (ii) disburse to the Subscribers any interest thereon calculated pursuant to the provisions of Section 8, provided however, that in the event a Form W-9 pertaining to any
Subscriber has not been received by you from the Dealer Manager, you shall remit an amount to such subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income on subscription proceeds
attributable to such Subscriber. 
 (ii)      Notwithstanding any disbursement of funds from the Escrow Account
pursuant to Section 3(a)(i), the Dealer Manager shall continue to forward, or cause to be forwarded, checks received from TN Subscribers to you for deposit into the TN Escrow Account until such time as the collected funds in the TN Escrow
Account equal or exceed the TN Required Capital. Subject to the provisions of Sections 3(b), 3(c) and 3(d) below, once the collected funds in the TN Escrow Account are of an amount equal to or greater than the TN Required Capital, and upon receiving
written instructions from the Company for disbursement of the funds, you shall (i) disburse to the Company, by check or wire transfer, the funds in the TN Escrow Account representing the gross purchase price for the Shares, and
(ii) disburse to the Subscribers any interest thereon calculated pursuant to the provisions of Section 8, provided however that in the event a Form W-9 pertaining to any Subscriber has not been received by you from the Dealer Manager, you
shall remit an amount to such Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income on subscription proceeds attributable to such Subscriber. 
 (iii)      Notwithstanding any disbursement of funds pursuant to Sections 3(a)(i) and 3(a)(ii), the Dealer Manager shall
continue to forward, or cause to be forwarded, checks received from OR Subscribers and PA Subscribers for deposit into the PA/OR Escrow Account, respectively, until such time as the aggregate gross proceeds from the Offering equals or exceeds the
PA/OR Required Capital. Subject to the provisions of Sections 3(b), 3(c) and 3(d) below, once the PA/OR Required Capital has been received, and upon receiving written instructions from the Company for disbursement of the funds, you shall
(i) disburse to the Company, by check or wire transfer, the funds in the PA/OR Escrow Account representing the gross purchase price for the Shares, and (ii) disburse to the Subscribers any interest thereon calculated pursuant to the
provisions of Section 8, provided however that in the event a Form W-9 pertaining to any Subscriber has not been received by you from the Dealer Manager, you shall remit an amount to such Subscriber in accordance with the provisions hereof,
withholding twenty-eight percent (28%) of any interest income on subscription proceeds attributable to such Subscriber. Following such disbursement, you shall close the Escrow Account and all of the sub-accounts. 
 (b)      (i)      If, at the close of business on the date that is 30 business days prior to
the Threshold Date, you are not in receipt of evidence of Qualifying Subscriptions and checks representing aggregate gross proceeds that equal or exceed the Minimum Required Capital, you shall promptly so notify the Company and the Dealer Manager.
Within one business day 

  

 5 

 
thereafter, the Dealer Manager shall transmit, or cause to be transmitted, to you an executed Form W-9 for each Subscriber (unless a Form W-9 for such
Subscriber has previously been transmitted to you by the Dealer Manager). You shall not be obligated to use any efforts to obtain such Form W-9s from the Subscribers, the Company or the Dealer Manager. 
 (ii)      If, at the close of business on the date that is 6 business days prior to the Threshold Date, you are not in
receipt of evidence of Qualifying Subscriptions and checks representing aggregate gross proceeds that equal or exceed the Minimum Required Capital, you shall promptly so notify the Company and the Dealer Manager. Within one business day thereafter,
the Dealer Manager shall transmit to you instructions for allocating among the Subscribers any interest income earned on the subscription proceeds, which amounts shall be calculated by the Dealer Manager in accordance with Section 8.

 (iii)      If, at the close of business on the Threshold Date, you are not in receipt of evidence of
Qualifying Subscriptions received on or before such date and checks dated not later than that date representing aggregate gross proceeds that equal or exceed the Minimum Required Capital, you shall promptly so notify the Company and the Dealer
Manager. Promptly following the Threshold Date, and in any event no later than the next business day after the Threshold Date, you shall return directly to each Subscriber by your check the collected funds deposited in the Escrow Account, the PA/OR
Escrow Account and the TN Escrow Account (as applicable) on behalf of such Subscriber (unless previously disbursed in accordance with Section 3(c) or 3(d) below), or shall return the checks delivered to you if such checks have not been
processed for collection prior to such time, together with interest in the amounts instructed by the Dealer Manager pursuant to Section 3(b)(ii) for each subscriber at the address given to you by the Dealer Manager. In the event a Form W-9
pertaining to any Subscriber has not been received by you from the Dealer Manager, you shall remit an amount to such Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income on
subscription proceeds attributable to such Subscriber. However, you shall not be required to remit such payments until you have collected funds represented by such payments. 
 (c)      (i)      Notwithstanding Sections 3(a) and 3(b) above, if you are not in receipt of
evidence of Qualifying Subscriptions received on or before the close of business on such date that is 120 days after the date the Company first receives a Qualifying Subscription from a PA Subscriber (such period, the “Initial Escrow
Period”), and checks dated not later than that date, representing aggregate gross proceeds that equal or exceed the PA/OR Required Capital, you shall promptly so notify the Company and the Dealer Manager. Within one business day
thereafter, the Dealer Manager shall transmit to you (i) instructions for allocating among the PA Subscribers interest income earned on the subscription proceeds in the PA/OR Escrow Account, which amounts shall be calculated by the Dealer
Manager in accordance with Section 8, and (ii) a Form W-9 for each PA Subscriber. The Company shall send to each PA Subscriber by certified mail within 10 calendar days after the end of the Initial Escrow Period a notification in the form
of Exhibit A. If, pursuant to such notification, a PA Subscriber requests the return of his or her subscription funds within 10 calendar days after receipt of the notification (the “Request Period”), you shall promptly
refund directly to each PA Subscriber the funds deposited in the PA/OR Escrow Account on behalf of such PA Subscriber or shall return the checks delivered, but not yet processed for collection prior to such time, to the address provided by the
Dealer Manager or the Company, together with interest income in the amounts instructed by the 

  

 6 

 
Dealer Manager. Notwithstanding the above, if you have not received a Form W–9 for such PA Subscriber from the Dealer Manager, you shall thereupon remit
an amount to such PA Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income earned on subscription proceeds attributable to such PA Subscriber. However, you shall not be required to
remit such payments until you have collected funds represented by such payments. 
 (ii)      The subscription
funds of PA Subscribers who do not request the return of their subscription funds within the Request Period shall remain in the PA/OR Escrow Account for successive 120-day escrow periods (each a “Successive Escrow Period”),
each commencing automatically upon the termination of the prior Successive Escrow Period, and the Company and you shall follow the notification and payment procedure set forth in Section 3(c)(i) above with respect to the Initial Escrow Period
for each Successive Escrow Period until the occurrence of the earliest of (A) the Offering End Date, (B) the receipt by the Company of Qualifying Subscriptions representing aggregate gross proceeds that equal or exceed the PA/OR Required
Capital and the disbursement of the PA/OR Escrow Account on the terms specified herein, or (C) all collected funds held in the PA/OR Escrow Account having been returned to the PA Subscribers in accordance with the provisions hereof. 

(d)      If the Company elects to reject any subscription for which you have already collected funds, you shall, upon
the written request of the Company, promptly issue a refund check to the rejected Subscriber. If the Company rejects any subscription for which you have not yet collected funds but have submitted the Subscriber’s check for collection, you shall
promptly issue a check in the amount of the Subscriber’s check to the rejected Subscriber after you have collected such funds. If you have not yet submitted a rejected Subscriber’s check for collection, you shall promptly return the
Subscriber’s check directly to the Subscriber. Such rejected subscriptions shall not be considered Qualifying Subscriptions for the purpose of determining whether the Minimum Required Capital, the TN Required Capital or the PA/OR Required
Capital has been raised. 
 (e)      If, at the close of business on the Offering End Date, any funds in the
Escrow Account or any of its sub-accounts have not otherwise been disbursed in accordance with this Section 3, you shall promptly refund directly to each Subscriber the funds deposited in the Escrow Account or the applicable sub-account, on
behalf of such Subscriber or shall return the checks delivered, but not yet processed for collection prior to such time, to the address provided by the Dealer Manager or the Company, together with interest income in the amounts instructed by the
Dealer Manager. Notwithstanding the above, if you have not received a Form W–9 for such Subscriber from the Dealer Manager, you shall thereupon remit an amount to such Subscriber in accordance with the provisions hereof, withholding
twenty-eight percent (28%) of any interest income earned on subscription proceeds attributable to such Subscriber. However, you shall not be required to remit such payments until you have collected funds represented by such payments.

 4.      You will provide electronic statements of the account with respect to the Escrow Account, the TN Escrow Account and
the PA/OR Escrow Account to the parties listed in Section 13 in accordance with your standard practice. Notice of the statements will be sent to each party at the e-mail address shown for that party. Upon written request, a party may receive
paper 

  

 7 

 
statements in lieu of electronic statements. You will offer the parties the option of viewing statements (in PDF Format), account activity, investment
holdings and other reports via the internet using Trust OnlineTM. Account information via Trust OnlineTM is for review purposes only, but can be downloaded and/or printed. You will notify parties at the beginning of each statement cycle that
the statement is available. Upon the establishment of the Escrow Account, the TN Escrow Account and the PA/OR Escrow Account, you will send the parties a username, password and instructions for accessing Trust OnlineTM. Although precaution has
been taken to ensure information is transmitted safely and securely, the Escrow Agent does not guarantee or warrant the privacy or security of information on the Internet. 
 5.      All funds in the Escrow Account, the TN Escrow Account and the PA/OR Escrow Account, until disbursed to the Company in accordance with Section 3 hereof, are to be held for
the benefit of the Subscribers and are not to (i) be commingled with the monies or become an asset of the Company, or (ii) be subject to attachment, levy or other encumbrance in any action by a third party against the Company. 

6.      Prior to the disbursement of funds deposited in the Escrow Account, the TN Escrow Account or the PA/OR Escrow Account, as
applicable, in accordance with the provisions of Section 3 hereof, you shall invest all of the funds deposited in such accounts in Short-Term Investments in compliance with SEC Rule 15c2-4 and you are further authorized and you agree to
reinvest all earnings and interest derived therefrom in Short-Term Investments. In the absence of written direction from the Company, funds deposited in the Escrow Account, the TN Escrow Account and the PA/OR Escrow Account, and any earnings and
interest derived therefrom, shall be deposited in the First Republic Bank Business Money Market account. 
 7.      Disbursements from the Escrow Account, the TN Escrow Account and the PA/OR Escrow Account, other than disbursements required pursuant to the provisions of Section 3 hereof, shall be made by you
only in accordance with this Section 7. You are authorized to rely upon letter instructions that you receive from the Company, and, solely with respect to calculations and allocations of interest income among Subscribers, from the Dealer
Manager, whether or not such instructions are correct, true or authentic; provided that, if in your opinion such letter instructions are unclear, you are authorized to rely upon the legal counsel to the Company in distributing such funds to the
effect that distribution of the funds is authorized by the letter instructions of the Company and that distribution of the funds in that manner is authorized by and in compliance with such letter. For the purposes of this Agreement, you shall not
accept any oral communications from any party. However, you shall not be required to disburse any funds attributable to checks that have not been collected, provided that you shall use your best efforts to promptly collect such funds after receipt
of disbursement instructions from the Company in accordance with this Section, and shall disburse such funds in compliance with the disbursement instructions from the Company. 
 8.      (a)      If the collected funds are disbursed in accordance with the provisions of Section 3(a), or the Offering terminates prior to receipt of
the Minimum Required Capital, or one or more of the PA Subscribers elects to have his or her subscription returned in accordance with Section 3(c), the Dealer Manager shall calculate each Subscriber’s pro rata portion of Escrow Income, TN
Escrow Income or PA/OR Escrow Income, as applicable, in accordance with Section 8(b), and you shall be remit to Subscribers such amounts in accordance with Section 3 and without 

  

 8 

 
any deductions for escrow expenses. 
 (b)      Each Subscriber’s pro rata portion of Escrow Income (or TN Escrow Income or PA/OR Escrow Income, as applicable) shall be calculated as follows: the total amount of Escrow Income (or TN Escrow
Income or PA/OR Escrow Income, as applicable) upon the date of the disbursement, shall be multiplied by a fraction, (i) the numerator of which is the product of the number of Shares purchased by such Subscriber multiplied by the number of days
such Subscriber’s funds are held in the Escrow Account (or the TN Escrow Account or the PA/OR Escrow Account, as applicable) prior to the date of disbursement, and (ii) the denominator of which is the total of the numerators for all
Subscribers having funds in such account as of the date of the disbursement. 
 9.      As compensation for serving as Escrow
Agent hereunder, you shall receive a fee, as set forth on Exhibit B. Notwithstanding anything contained herein to the contrary, you shall look to the Company for payment of the fees and expenses, and you waive all right of offset against the
funds held in the Escrow Account, TN Escrow Account and PA/OR Escrow Account pursuant to the terms of this Agreement. 
 10.      In performing any of your duties hereunder, you shall not incur any liability to anyone for any damages, losses, or expenses, except for your willful misconduct, breach of trust, or gross negligence.
Accordingly, you shall not incur any such liability with respect to any action taken or omitted (a) in good faith upon advice of your counsel given with respect to any questions relating to your duties and responsibilities under this Agreement,
or (b) in reliance upon any instrument, including any written instrument or instruction provided for in this Agreement, not only as to its due execution and validity and effectiveness of its provisions but also as to the truth and accuracy of
information contained therein, which you shall in good faith believe to be genuine, to have been signed or presented by a proper person or persons and to conform to the provisions of this Agreement. 
 11.      The Company hereby agrees to indemnify and hold you harmless against any and all losses, claims, damages, liabilities and
expenses, including reasonable attorneys’ fees and disbursements, that may be imposed on you or incurred by you in connection with your acceptance of appointment as the Escrow Agent hereunder, or the performance of your duties hereunder,
including any litigation arising from this Agreement or involving the subject matter hereof, except where such losses, claims, damages, liabilities and expenses result from your willful misconduct, breach of trust or gross negligence. 
 12.      In the event of a dispute between the parties hereto sufficient in your discretion to justify doing so, you shall be entitled to
tender into the registry or custody of any court of competent jurisdiction all money or property in your hands under this Agreement, together with such legal pleadings as you deem appropriate, and thereupon be discharged from all further duties and
liabilities under this Agreement. In the event of any uncertainty as to your duties hereunder, you may refuse to act under the provisions of this Agreement pending order of a court of competent jurisdiction and you shall have no liability to the
Company or to any other person as a result of such action. Any such legal action may be brought in such court as you shall determine to have jurisdiction thereof. The filing of any such legal proceedings shall not deprive you of your compensation
earned prior to such filing. 
  

 9 

 13.      All notices hereunder shall be made in writing. Any such notices shall be given by
mailing with postage paid and certified or registered or by personal delivery or by telegraphing or faxing the same (transmission costs prepaid) to the respective party at the address listed below, and five (5) business days following the date of
such mailing or the actual date of such personal delivery, telegraphing or faxing shall be the date of the giving of such notice. 
 If to you: 

First Republic Trust Company 
 1888 Century Park East 
 Los Angeles, CA 90067-1702
 Attn: Stephanie Wheeler 
 Direct Phone: (310) 407-7170 
 Fax: (310) 407-7171 
 E-mail: swheeler@firstrepublic.com 
 If to the Company: 
 KBS Real Estate Investment Trust II, Inc. 
 620 Newport Center Drive, Suite
1300 
 Newport Beach, CA 92660 
 Attn: Charles J. Schreiber, Jr.

 Direct Phone: (949) 417-6600 
 Fax: (949) 417-6527

 E-mail: cschreiber@kbsrealty.com 
 If to the Dealer Manager:

 KBS Capital Markets Group LLC 
 660 Newport Center Drive,
Suite 1200 
 Newport Beach, CA 92660 
 Attn: Ken Jaffe

 Direct Phone: (949) 717-6203 
 Fax: (949) 717-6201

 E-mail: kjaffe@kbs-cmg.com 
 Each party hereto may, from time
to time, change the address to which notices to it are to be delivered or mailed hereunder by notice in accordance herewith to the other parties. 
 14.      This Agreement shall be governed by the laws of the State of California as to both interpretation and performance without regard to the conflict of laws rules thereof. 
 15.      The provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable only by the parties hereto
and their respective legal representatives, successors and assigns. 
  

 10 

 16.      The Company and the Dealer Manager hereby acknowledge that you are serving as
Escrow Agent only for the limited purposes herein set forth, and hereby agree that they will not represent or imply that you, by serving as Escrow Agent hereunder or otherwise, have investigated the desirability or advisability of investment in the
Company or have approved, endorsed or passed upon the merits of the Shares or the Company, nor shall they use your name in any manner whatsoever in connection with the offer or sale of the Shares other than by acknowledgment that you have agreed to
serve as Escrow Agent for the limited purposes herein set forth. 
 17.      This Agreement and any amendment hereto may be
executed by the parties hereto in one or more counterparts, each of which shall be deemed to be an original. 
 18.      (a)      In the event that you receive any check related to the Offering from a General Escrow Subscriber after the Minimum Required Capital has been raised and the
proceeds of the Escrow Account have been disbursed in accordance with Section 3(a)(i) hereof, and such check is made payable to you as Escrow Agent for the Company, you agree to: (i) promptly endorse such check to the order of the Company,
and (ii) promptly forward such duly endorsed check to such address as the Company directs in writing, or in the absence of such direction to the Company at the address set forth in Section 13. The endorsement and forwarding of such checks
as directed by the Company, shall be a full acquittance of your obligations hereunder and you shall not be responsible for the application of such funds thereafter. 
 (b)       In the event that you receive any check related to the Offering from a TN Subscriber after the TN Required Capital has been raised and the proceeds of the TN Escrow Account have
been disbursed in accordance with Section 3(a)(ii) hereof, and such check is made payable to you as Escrow Agent for the Company, you agree to promptly: (i) promptly endorse such check to the order of the Company, and (ii) promptly
forward such duly endorsed check to such address as the Company directs in writing, or in the absence of such direction to the Company at the address set forth in Section 13. The endorsement and forwarding of such checks as directed by the
Company, shall be a full acquittance of your obligations hereunder and you shall not be responsible for the application of such funds thereafter. 
 (c)      In the event that you receive any check related to the Offering from a PA Subscriber or an OR Subscriber after the PA/OR Required Capital has been raised and the proceeds of the PA/OR Escrow Account
have been disbursed in accordance with Section 3(a)(ii) hereof, and such check is made payable to you as Escrow Agent for the Company, you agree to promptly: (i) promptly endorse such check to the order of the Company, and
(ii) promptly forward such duly endorsed check to such address as the Company directs in writing, or in the absence of such direction to the Company at the address set forth in Section 13. The endorsement and forwarding of such checks as
directed by the Company, shall be a full acquittance of your obligations hereunder and you shall not be responsible for the application of such funds thereafter. 
 19.      You shall be bound only by the terms of this Agreement and shall not be bound by or incur any liability with respect to any other agreements or understandings between any other parties, whether or not
you have knowledge of any such agreements or understandings. 
  

 11 

 21.      This Agreement shall terminate on the date that all funds held in the Escrow
Account, TN Escrow Account and PA/OR Escrow Account are distributed either (a) to the Company or to subscribers pursuant to Section 3 hereof or (b) to a successor escrow agent upon written instructions from the Company. The provisions
set forth in Sections 11 and 18 shall survive the termination of this Agreement. 
 22.      You have no responsibility for
accepting, rejecting or approving subscriptions. 
 23.      This Agreement shall not be modified or amended unless reduced to
writing and signed by all parties hereto. 
 24.      If, at any time, any attempt is made to modify or amend this Agreement in
a manner that would increase your duties and responsibilities or to modify this Agreement in any manner that you deem undesirable, or at any other time, you may resign by providing written notice to the Company, which resignation shall be effective
upon the earlier of (a) the acceptance by a successor escrow agent appointed by the Company, or (b) 30 days after such written notice has been given. 
 25.      You may be removed by the Company by written notice to you effective on the date specified in such written notice. Your removal as the Escrow Agent shall not deprive you of compensation earned prior to
such removal. 
 26.      In the event of your removal or resignation as the Escrow Agent, the Company shall appoint a
successor which, upon its acceptance in writing of such appointment delivered to you and the Company, shall be vested with all the rights, powers and duties of the Escrow Agent under this Agreement, and you shall be released and discharged from all
further liability in connection with this Agreement. If the Company fails to appoint a successor Escrow Agent within 30 days after your removal or resignation, you may do one of the following: 
 (i) take no further action until directed by the Company; or 
 (ii) tender
into the registry or custody of any court of competent jurisdiction all money or property in your hands under this Agreement, together with such legal pleadings as you deem appropriate. 
 You shall transfer, assign and deliver to your successor all of the property then held by you under this Agreement. You may also transfer to the successor escrow agent copies of your records as they relate to this
Agreement as may be requested by the successor escrow agent, except as to those records that you have or may assert a claim of privilege. The successor escrow agent shall not be liable or responsible for anything done or omitted in the
administration of the escrow accounts pursuant to this Agreement prior to the date it shall have become Escrow Agent, nor be required to audit or otherwise inquire into or take any action concerning the acts of any retiring Escrow Agent. 

27.      The parties to this Agreement understand that the Escrow Agent is required to provide United States income tax reporting for
the Escrow Income, TN Escrow Income and the PA/OR Escrow Income. Each subscriber’s pro rata portion of Escrow Income (or TN Escrow Income or PA/OR Escrow Income, as applicable), as calculated by the Dealer Manager in accordance with 

  

 12 

 
the provisions of Section 8, shall be reported by the Escrow Agent as taxable to such subscriber. The Escrow Agent shall generate and deliver to each
subscriber a Form 1099 as and when required under the United States income tax laws and regulations. 
 [signatures on following page] 

  

 13 

 Agreed to as of the 2nd day of June, 2008. 
  

			
	KBS REAL ESTATE INVESTMENT TRUST II, INC.
		
	By:	 	/s/ Charles J. Schreiber, Jr.
	Name:	 	Charles J. Schreiber, Jr.
	Title:	 	Chief Executive Officer
	
	KBS CAPITAL MARKETS GROUP, LLC
		
	By:	 	/s/ Ken Jaffe
	Name:	 	Ken Jaffe
	Title:	 	Chief Operating Officer

 The terms and conditions contained above are hereby accepted and agreed to by: 
  

			
	FIRST REPUBLIC TRUST COMPANY
		
	By:	 	/s/ Stephanie L. Wheeler
	Name:	 	Stephanie L. Wheeler
	Title:	 	Senior Trust Officer

  

 14 

 EXHIBIT A 
 Form of Notice to Pennsylvania Subscribers 
 You have tendered a subscription to purchase shares of common stock of KBS Real
Estate Investment Trust II, Inc. (the “Company”). Your subscription is currently being held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the Company to accept subscriptions from Pennsylvania residents
until an aggregate of $66,700,000 of gross offering proceeds have been received by the Company. The Pennsylvania guidelines provide that, until this minimum amount of offering proceeds is received by the Company, every 120 days during the offering
period Pennsylvania Subscribers may request that their subscription be returned. 
 If you wish to continue your subscription in escrow until the
Pennsylvania minimum subscription amount is received, nothing further is required. 
 If you wish to terminate your subscription for the Company’s
shares of common stock and have your subscription returned please so indicate below, sign, date, and return to the Escrow Agent, First Republic Trust Company, 1888 Century Park East, Los Angeles, CA 90067-1702, Attn: Stephanie Wheeler. 

I hereby terminate my prior subscription to purchase shares of common stock of KBS Real Estate Investment Trust II, Inc. and request the return of my subscription
funds. I certify to KBS Real Estate Investment Trust II, Inc. that I am a resident of Pennsylvania. 
  

	
	Signature: __________________________________
	
	Name: _____________________________________
	                            (please
print)
	
	Date: ______________________________________

  

	
	Please send the subscription refund to:
	
	  
	
	 
	
	 
	
	 

 EXHIBIT B 
 KBS Real Estate Investment Trust II, Inc. 
 Escrow Agent Fee Schedule 
  

			
	Annual Escrow Agent Fee	 	$12,500
	
	 The first annual fee will be payable upon the execution of this Agreement and subsequent fees will be payable annually in advance.

		
	 Transaction Fee
	 	$25 for each transaction
	
	 Applicable to all securities transactions, disbursements, returned checks, and 1099s generated for the Escrow
Account.

 Fees shall be deemed fully earned when paid and shall not be subject to offset or allocation in the event that
Escrow Agent acts for less than a full year. 
 All fees due to the Escrow Agent will be paid by KBS Real Estate Investment Trust II, Inc. in accordance with
the provisions of Section 9 of the Agreement.

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