Document:

EX-10.18

 Exhibit 10.18 

KBS GROWTH & INCOME REIT, INC. 

Up to $105,000,000 of Class A Shares of Common Stock 

offered to accredited investors only 

DEALER MANAGER AGREEMENT 

June 11, 2015 
 KBS Capital Markets Group
LLC 
 800 Newport Center Drive, Suite 700 
 Newport Beach,
California 92660 
 Ladies and Gentlemen: 

KBS Growth & Income REIT, Inc., a Maryland corporation (the “Company”) proposes that the Company
issue and sell up to $105,000,000 of Class A shares of its common stock, $.01 par value per share (the “Shares”), of which up to $5,000,000 of Shares are intended to be offered pursuant to the Company’s distribution
reinvestment plan (the “DRP”), to “accredited investors,” as that term is defined in the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder (the
“Offering”). The Company desires for KBS Capital Markets Group LLC (the “Dealer Manager”) to act as its agent in connection with the Offering. Terms not defined herein shall have the same meaning as in the
Company’s Confidential Private Placement Memorandum dated June 11, 2015 (as amended or supplemented from time to time, the “Private Placement Memorandum”). 

It is anticipated that the Dealer Manager will enter into Selected Dealer Agreements (each, a “Selected Dealer
Agreement”) in the form attached to this Agreement as Exhibit A with other broker-dealers participating in the Offering (each participating broker-dealer being referred to herein as a “Dealer”). The Company shall
have the right to approve any material modifications or addendums to the form of the Selected Dealer Agreement. 
 Except as
described in the Private Placement Memorandum (as amended and supplemented) or in Section 4.2 hereof, the Shares are to be sold at a per Share cash price as follows: 

							
	 Distribution Channel
	  	Aggregate Gross Primary
Offering Proceeds Raised*                  
  	  	Primary Offering 
Shares*	  	DRP
Shares**        
	 Sales through a Dealer earning transaction-based compensation
	  	$0	  	$8.90	  	$8.455
		  	$4,999,999	  	$9.05	  	$8.598
		  	$9,999,999	  	$9.20	  	$8.740
		  	$19,999,999	  	$9.30	  	$8.835
		  	$39,999,999	  	$9.40	  	$8.930
		  	$59,999,999	  	$9.50	  	$9.025
		  	$79,999,999	  	$9.60	  	$9.120
	 *  Shares purchased through a registered investment adviser who acts as a third
party asset management provider will not count towards aggregate gross primary offering proceeds raised for purposes of determining whether the thresholds to increase the offering price have been met.

**DRP Shares are priced at 95% of the then-current offering price for Shares in a primary offering (whether in the
primary Offering or a follow-on primary offering and ignoring any discounts that may be available to certain categories of purchasers) or 95% of the most recent offering price in a primary offering if there is no current offering. Once the Company
establishes an estimated net asset value (“NAV”) per Share, Shares issued pursuant to the Company’s DRP will be priced at 95% of the estimated NAV per share of the Company’s common stock.

 Until the Company commences an initial public offering, the per Share price increase will take
effect on the second business day following the day on which the Company has raised aggregate gross primary offering proceeds as indicated above. Shares in the Offering will be purchased at the offering price in effect on the date a subscription
agreement is received in good order and either (i) processed by the Company’s transfer agent, or (ii) confirmed for acceptance into the escrow account applicable to subscription proceeds received from Benefit Plan investors, as
applicable to the Shares. 
 Notwithstanding the pricing set forth above, if the Company commences an initial public
offering, the Company will increase the offering price per Share in this primary Offering to $10.00 (with discounts available to certain categories of purchasers) and the purchase price per Share under the DRP will increase to $9.50, to match the
prices at which Class A Shares of the Company’s common stock will be offered in the public offering. 
 In
connection with the sale of Shares, the Company hereby agrees with you, the Dealer Manager, as follows: 
  

	1.	 Representations and Warranties of the Company. 

As an inducement to the Dealer Manager to enter into this Agreement, the Company represents and warrants to the Dealer Manager
and to each Dealer that: 
 1.1       The Company has been duly and validly organized and
formed as a corporation under the laws of the State of Maryland, with the power and authority to conduct its business as described in the Private Placement Memorandum. 

1.2       The Private Placement Memorandum with respect to the Offering has been prepared
by the Company. The Private Placement Memorandum complies with the Securities Act for offerings solely to accredited investors as set forth in Regulation D promulgated thereunder and does not contain any untrue statements of material fact or omit to
state any 

  
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material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading; provided, however, that
the foregoing provisions of this Section 1.2 will not extend to such statements contained in or omitted from the Private Placement Memorandum that are primarily within the knowledge of the Dealer Manager or any of the Dealers. Copies of the
Private Placement Memorandum and each amendment and supplement thereto have been or will be delivered to the Dealer Manager. 

1.3       The Company intends to use the funds received from the sale of the Shares as set
forth in the Private Placement Memorandum. 
 1.4       The Company has full legal right,
power and authority to enter into this Agreement and to perform the transactions contemplated hereby, except to the extent that the enforceability of the indemnity provisions contained in Section 5 of this Agreement may be limited under
applicable securities laws and to the extent that the enforceability of this Agreement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws that affect creditors’ rights generally or by equitable principles
relating to the availability of remedies. 
 1.5       The execution and delivery of this
Agreement, the consummation of the transactions contemplated herein and compliance with the terms of this Agreement by the Company will not conflict with or constitute a default or violation under any charter, bylaw, contract, indenture, mortgage,
deed of trust, lease, rule, regulation, writ, injunction or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Company, except to the extent that the enforceability of the indemnity
provisions contained in Section 5 of this Agreement may be limited under applicable securities laws and to the extent that the enforceability of this Agreement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws that affect creditors’ rights generally or by equitable principles relating to the availability of remedies. 

1.6       No consent, approval, authorization or other order of any governmental authority
is required in connection with the execution or delivery by the Company of this Agreement or the issuance and sale by the Company of the Shares, except as may be required under the Securities Act and the rules and regulations (the “Rules and
Regulations”) of the Securities and Exchange Commission (“SEC”) promulgated thereunder or under applicable state securities laws. 

1.7       The Shares have been duly authorized and, when issued and sold as contemplated by
the Private Placement Memorandum and upon payment therefor as provided in the Private Placement Memorandum and this Agreement, the Shares will be validly issued, fully paid and nonassessable and will conform to the description thereof contained in
the Private Placement Memorandum. 
 1.8       None of the Company, any of its
predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the Offering, any beneficial owner (as that term is defined under Rule 13d-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in

  
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Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, a “Company Covered Person” and, together, “Company Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised, and during the term of the Offering will continue to exercise, reasonable care to determine whether any Company Covered Person, any Dealer Manager Covered Person (as
defined in Section 3.12 below) and any Dealer Covered Person (as defined in Section 3.13 below) is subject to a Disqualification Event. The Company will immediately comply, to the extent applicable, with its disclosure obligations under
Rule 506(e), and will immediately effect the preparation of an amended or supplemented Private Placement Memorandum that will contain any such required disclosure and will, at no expense to the Dealer Manager, promptly furnish the Dealer Manager
with such number of printed copies of such amended or supplemented Private Placement Memorandum containing any such required disclosure, including any exhibits thereto, as the Dealer Manager may reasonably request. 

1.9       The Company is not aware of any person (other than any Company Covered Person,
Dealer Manager Covered Person or Dealer Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Shares. 

1.10     With respect to each Company Covered Person, the Company has established procedures
reasonably designed to ensure that the Company receives notice from each such Company Covered Person of (i) any Disqualification Event relating to that Company Covered Person, and (ii) any event that would, with the passage of time, become
a Disqualification Event relating to that Company Covered Person. 
 1.11     The representations
and warranties in Sections 1.8 through 1.10 are and shall be continuing representations and warranties throughout the term of the Offering. The Company will promptly notify the Dealer Manager in writing upon becoming aware of any fact which makes
any such representation or warranty untrue. 
  

	2.	 Covenants of the Company. 

The Company covenants and agrees with the Dealer Manager that: 

2.1       It will, at no expense to the Dealer Manager, furnish the Dealer Manager with
such number of printed copies of the Private Placement Memorandum, including all amendments, supplements and exhibits thereto, as the Dealer Manager may reasonably request. It will similarly furnish to the Dealer Manager and others designated by the
Dealer Manager as many copies of (a) this Agreement and (b) any other printed sales literature or other materials authorized by the Company to be used in the Offering (“Authorized Sales Materials”) as the Dealer Manager
may reasonably request in connection with the offering of the Shares (provided that the use of said sales literature and other materials has been first approved for use by the Company). 

  
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 2.2       It will furnish such information and
execute and file such documents as may be necessary for the Company to offer and sell the Shares under applicable exemptions from the registration requirements under the Securities Act and the securities laws of such other jurisdictions as the
Dealer Manager may reasonably designate and will file such statements and reports as may be required. The Company will furnish to the Dealer Manager upon request a copy of such papers filed by the Company in connection with any such exemption. 

2.3       If at any time during the Offering any event occurs as a result of which, in the
opinion of either the Company or the Dealer Manager, the Private Placement Memorandum would include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in view of the circumstances
under which they were made, not misleading, the Company will promptly notify the Dealer Manager thereof (unless the information shall have been received from the Dealer Manager) and will effect the preparation of an amended or supplemental Private
Placement Memorandum that will correct such statement or omission. 
 2.4       It will
pay all expenses incident to the performance of its obligations under this Agreement, including (a) the preparation of the Private Placement Memorandum and of each amendment thereto, (b) the preparation, printing and delivery to the Dealer
Manager of this Agreement, the Selected Dealer Agreement and such other documents as may be required in connection with the offer, sale, issuance and delivery of the Shares, (c) the fees and disbursements of the Company’s counsel,
accountants and other advisors, (d) the fees and expenses, if any, related to the filing of the Private Placement Memorandum with the Financial Industry Regulatory Authority, Inc. (“FINRA”), (e) the fees and expenses
related to exemption of the Shares under federal and state securities laws, including the fees and disbursements of counsel in connection with the preparation of any Blue Sky survey and any supplement thereto, (f) the printing and delivery to
the Dealer Manager of copies of the Private Placement Memorandum, including any amendments and supplements thereto, (g) the fees and expenses of any registrar or transfer agent in connection with the Shares and (h) the costs and expenses
of the Company relating to the preparation and printing of any Authorized Sales Materials. 

2.5       The Company will notify the Dealer Manager in writing, promptly upon the
occurrence of (i) any Disqualification Event relating to any Company Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Company Covered Person. 

 

	3.	 Covenants and Agreements of the Dealer Manager. 

3.1       Pursuant to your appointment as the Dealer Manager of this Offering, you
specifically agree as set forth below: 
  

	 	(a)	 The Dealer Manager agrees, and in its agreements with the Dealers shall require the Dealers to agree, to not offer or sell the Shares by means of
any form of general solicitation or general advertising, including but not limited to, the following: 

  
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 (i)       any advertisement,
article, notice, or other communication published in any newspaper, magazine or similar media, cold mass mailings, broadcasts over television or radio, material contained on a website available to the public or an e-mail message sent to a large
number of previously unknown persons; 
 (ii)      any seminar or meeting
whose attendees have been invited by any general solicitation or general advertising; or 

(iii)     any letter, circular, notice, or other written communication constituting
a form of general solicitation or general advertising. 
  

	 	(b)	 The Dealer Manager, in its agreements with the Dealers, shall require the Dealers to agree to provide each offeree with a numbered copy of the
Private Placement Memorandum (including any amended and restated Private Placement Memorandum), and all supplements or amendments thereto, and to keep on file memoranda indicating to whom each Private Placement Memorandum, supplement or amendment
thereto and supplemental material was delivered, which memoranda shall further indicate by number to whom each initial Private Placement Memorandum and any amended and restated Private Placement Memorandum was delivered. 

 

	 	(c)	 The Dealer Manager, in its agreements with the Dealers, shall require the Dealers to agree to the following in connection with any offer or sale of
the Shares: 

 (i)       to comply in all respects
with statements set forth in the Private Placement Memorandum and any supplements or amendments to the Private Placement Memorandum; 

(ii)      not to make any statement inconsistent with the statements in the
Private Placement Memorandum and any supplements or amendments to the Private Placement Memorandum; 

(iii)     not to make any untrue or misleading statements of a material fact in
connection with the Shares; and 
 (iv)     not to provide any written
information, statements, or sales materials other than the Private Placement Memorandum and any supplements or amendments thereto and any supplemental information, unless approved in writing by the Dealer Manager. 

 

	 	(d)	 The Dealer Manager, in its agreements with the Dealers, shall require the Dealers to advise each offeree of Shares in the Company at the time of
the initial offering to such offeree that the Company shall, during the course of the Offering and a reasonable time before sale, afford offeree and offeree’s agents or representatives, if any, the opportunity to ask questions and receive
answers concerning the terms and conditions of the Offering and to obtain any additional information, to the extent possessed or obtainable by the Company without unreasonable effort or

  
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expense, that is necessary to verify the accuracy of the information contained in the Private Placement Memorandum. 

 

	 	(e)	 The Dealer Manager, in its agreements with the Dealers, shall require the Dealer to make, before the sale of any of the Shares, reasonable inquiry
to determine if the offeree is acquiring the Shares for offeree’s own account or on behalf of other persons, and that the offeree understands the limitations on the offeree’s disposition of the Shares set forth in Rule 502(d) of Regulation
D. This includes a determination by the Dealer that the offeree understands that he must bear the economic risk of the investment for an indefinite period of time because the Shares have not been registered under the Securities Act and, thus, cannot
be sold unless the Shares are subsequently registered under the Securities Act or an exemption from registration under the Securities Act is available. 

  

	 	(f)	 The Dealer Manager, in its agreements with the Dealers, shall require the Dealers, before the sale of any of the Shares, to: 

(i)       have reasonable grounds to believe that each subscriber is an
“accredited investor” as that term is then defined in Rule 501(a) of Regulation D; and 

(ii)      have sufficient information concerning the offeree to determine that
the offeree has such knowledge and experience in financial and business matters that the offeree is capable of evaluating the merits and risks of an investment in the Company. 

 

	 	(g)	 The Dealer Manager shall not, and in its agreements with the Dealers shall require that the Dealers shall not, distribute a Private Placement
Memorandum, supplement or amendment thereto or any supplemental information to any offeree with whom the Dealer Manager or such Dealer, as applicable, does not have a pre-existing substantive relationship, as defined from time to time by the SEC.

  

	 	(h)	 The Dealer Manager shall not, and in its agreements with the Dealers shall require that the Dealers shall not, utilize any registration statement
on Form S-11 filed by the Company with the SEC or any draft registration statement submitted confidentially to the SEC pursuant to Section 6(e) of the Securities Act (the “Registration Statement”) or the prospectus that forms a
part thereof in connection with the marketing of this Offering or offer or sell Shares in this Offering to any person who contacts the Dealer Manager or the Dealer, as applicable, as a result of reviewing or receiving the Registration Statement or
the prospectus that forms a part thereof. 

  

	 	(i)	 The Dealer Manager and the Dealers will suspend or terminate offering of the Shares upon request of the Company at any time and will resume
offering the Shares upon subsequent request of the Company. 

3.2       In connection with the Dealer Manager’s participation in the offer and sale
of Shares (including, without limitation, any resales and transfers of Shares), the Dealer Manager 

  
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will comply, and in its agreements with Dealers will require that the Dealers comply, with all requirements and obligations imposed upon any of them by (a) the Securities Act, the Exchange
Act and the rules and regulations of the SEC promulgated under both such acts; (b) all applicable state securities laws and regulations as from time to time in effect; (c) the applicable rules of FINRA, including, but not in any way
limited to, FINRA Rule 2121 and FINRA Rule 5141; (d) all applicable rules and regulations relating to the suitability of the investors; (e) any other state and federal laws and regulations applicable to the Offering, the sale of Shares or
the activities of the Dealer Manager pursuant to this Agreement, including without limitation the privacy standards and requirements of state and federal laws, including the Gramm-Leach-Bliley Act of 1999, and the laws governing money laundering
abatement and anti-terrorist financing efforts, including the applicable rules of the SEC and FINRA, the Bank Secrecy Act, as amended, the USA Patriot Act of 2001 and regulations administered by the Office of Foreign Asset Control
(“OFAC”) at the Department of the Treasury; and (f) this Agreement and the Private Placement Memorandum as amended and supplemented. 

3.3       The Dealer Manager will not offer the Shares, and in its agreements with Dealers
will require that the Dealers not offer Shares, in any jurisdiction unless and until (a) the Dealer Manager has been advised by the Company in writing that the Shares are exempt from the securities laws of such jurisdiction and (b) the
Dealer Manager and any Dealer offering Shares in such jurisdiction have all required licenses and registrations to offer Shares in that jurisdiction. 

3.4       The Dealer Manager represents and warrants to the Company and each owner,
director, officer and employee thereof that the information under the caption “Plan of Distribution” in the Private Placement Memorandum and all other information furnished and to be furnished to the Company by the Dealer Manager in
writing expressly for use in the Private Placement Memorandum, or any amendment or supplement thereto, does not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they are made, not misleading. 

3.5       The Dealer Manager will make, and in its agreements with Dealers will require
that Dealers make, no representations concerning the Offering except as set forth in the Private Placement Memorandum as amended and supplemented and in the Authorized Sales Materials. 

3.6       The Dealer Manager will offer Shares, and in its agreements with the Dealers will
require that the Dealers offer Shares, only to persons who meet the financial qualifications set forth in the Private Placement Memorandum as amended and supplemented or in any suitability letter or memorandum sent to the Dealer Manager by the
Company. In offering Shares, the Dealer Manager will, and in its agreements with the Dealers, the Dealer Manager will require that the Dealers will, comply with the provisions of all applicable rules and regulations relating to suitability of
investors, including without limitation, the provisions of Regulation D, Rule 506 promulgated under the Securities Act and FINRA Rule 2111. The Dealer Manager further agrees that the Company, in its sole and absolute discretion, may accept or reject
any subscription, in whole or in part, for any reason whatsoever and no commission will be paid to the Dealer Manager with respect to the portion of any subscription that is rejected. 

  
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 3.7       The Dealer Manager shall maintain,
or in its agreements with Dealers shall require the Dealers to maintain, for at least six years, a record of the information obtained to determine that an investor meets the financial qualification and suitability standards imposed on the offer and
sale of the Shares (both at the time of the initial subscription and at the time of any additional subscriptions). 

3.8       In making these determinations as to financial qualification and suitability, the
Dealer Manager may rely on representations from (i) investment advisers who are not affiliated with a Dealer or (ii) banks acting as trustees or fiduciaries. With respect to the Dealer Manager’s obligation to maintain records of an
investor’s financial qualification and suitability, the Company agrees that the Dealer Manager can satisfy its obligations by contractually requiring such information to be maintained by the investment advisers or banks discussed in the
preceding sentence. 
 3.9       If requested by the Company, the Dealer Manager shall
obtain, and shall cause the Dealers to obtain, from subscribers for the Shares, other documentation reasonably deemed by the Company to be required under applicable law or as may be necessary to reflect the policies of the Company. Such
documentation may include, without limitation, subscribers’ written acknowledgement and agreement to the privacy policies of the Company. 

3.10     Except for Authorized Sales Materials, the Company has not authorized the use of any
supplemental literature or sales material in connection with the Offering and the Dealer Manager agrees not to use any such material that has not been authorized by the Company. The Dealer Manager further agrees (a) not to deliver any
Authorized Sales Materials to any person unless it is accompanied or preceded by the Private Placement Memorandum as amended and supplemented, (b) not to show or give to any investor or prospective investor or reproduce any material or writing
that is supplied to it by the Company and marked “broker-dealer use only” or otherwise bearing a legend denoting that it is not to be used in connection with the sale of Shares to members of the public and (c) not to show or give to
any investor or prospective investor in a particular jurisdiction any material or writing that is supplied to it by the Company if such material bears a legend denoting that it is not to be used in connection with the sale of Shares to members of
the public in such jurisdiction. 
 3.11     The Dealer Manager will provide the Company with such
information relating to the offer and sale of the Shares by it as the Company may from time to time reasonably request or as may be requested to enable the Company to prepare such reports of sale as may be required to be filed under applicable
federal or state securities laws. 
 3.12     The Dealer Manager represents that neither it, nor
any of its directors, executive officers, general partners, managing members or other officers participating in the offering of Shares, nor any of the directors, executive officers or other officers participating in the offering of Shares of any
such general partner or managing member, nor any other officers, employees or associated persons of the Dealer Manager or any such general partner or managing member that have been or will be paid (directly or indirectly) remuneration for
solicitation of purchasers in connection with the sale of any Shares (each, a “Dealer Manager Covered Person” and, together, “Dealer Manager Covered Persons”), is subject to any Disqualification Event except

  
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for a Disqualification Event (i) contemplated by Rule 506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to the Company prior to the date
hereof. 
 3.13     In its agreements with the Dealers, the Dealer Manager will require the Dealers
to represent that neither the Dealer, nor any of its directors, executive officers, general partners, managing members or other officers participating in the offering of Shares, nor any of the directors, executive officers or other officers
participating in the offering of Shares of any such general partner or managing member, nor any other officers, employees or associated persons of the Dealer or any such general partner or managing member that have been or will be paid (directly or
indirectly) remuneration for solicitation of purchasers in connection with the sale of any Shares (each, a “Dealer Covered Person” and, together, “Dealer Covered Persons”), is subject to any Disqualification Event
except for a Disqualification Event (i) contemplated by Rule 506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to the Dealer Manager prior to the date of the Selected Dealer Agreement between the
Dealer Manager and such Dealer. 
 3.14     The Dealer Manager represents that it is not aware of
any person (other than any Company Covered Person, Dealer Manager Covered Person or Dealer Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Shares.
The Dealer Manager will notify the Company of any agreement entered into between the Dealer Manager and any such person in connection with such sale. 

3.15     The representations, warranties and covenants in Sections 3.12 through 3.14 above are and
shall be continuing representations, warranties and covenants throughout the term of the Offering. The Dealer Manager will notify the Company in writing promptly upon the occurrence of (i) any Disqualification Event relating to any Dealer
Manager Covered Person not previously disclosed to the Company in accordance with Section 3.12 above, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Dealer Manager Covered Person.

 3.16     In its agreements with the Dealers, the Dealer Manager will require that the Dealers
notify the Dealer Manager in writing promptly upon the occurrence of (i) any Disqualification Event relating to any Dealer Covered Person not previously disclosed to the Dealer Manager, and (ii) any event that would, with the passage of
time, become a Disqualification Event relating to any Dealer Covered Person. The Dealer Manager will notify the Company in writing promptly upon receiving notification from any Dealer of the occurrence of any such event described in this paragraph.

 3.17     The Dealer Manager acknowledges that, with respect to each Dealer Manager Covered
Person and Dealer Covered Person, the Company is relying upon the representations, covenants and agreements of the Dealer Manager set forth in this Section 3 and the representations, covenants and agreements of the Dealers referred to in this
Section 3 as procedures reasonably designed to ensure that the Company receives notice from each such Dealer Manager Covered Person or Dealer Covered Person of (i) any Disqualification Event relating to that Dealer Manager Covered Person
or Dealer Covered Person, and (ii) any event 

  
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that would, with the passage of time, become a Disqualification Event relating to that Dealer Manager Covered Person or Dealer Covered Person. 

3.18     The Dealer Manager will provide, and in its agreements with the Dealers will require the
Dealers to provide, such certifications, documentation, and other information reasonably requested by the Company from time to time which the Company deems to be necessary or advisable to carry out the exercise of reasonable care under Rule 506(d)
and (e) under the Securities Act in connection with this Offering. 
 3.19     The Dealer
Manager agrees to be bound by the terms of the Escrow Agreement dated June 11, 2015, among UMB Bank, N.A., as escrow agent, the Dealer Manager and the Company, a copy of which is attached hereto as Exhibit B, and the Dealer Manager
further agrees that it will not represent or imply that UMB Bank, N.A., as the escrow agent identified in the Private Placement Memorandum, has investigated the desirability or advisability of an investment in the Company or has approved, endorsed
or passed upon the merits of the Shares or of the Company, nor will the Dealer Manager use the name of said escrow agent in any manner whatsoever in connection with the offer or sale of the Shares other than by acknowledgment that it has agreed to
serve as escrow agent. 
  

	4.	 Obligations and Compensation of the Dealer Manager. 

4.1       The Company hereby appoints the Dealer Manager as its agent and principal
distributor for the purpose of selling for cash up to a maximum of $105,000,000 of Shares through the Dealers, all of whom shall be members of FINRA, registered investment advisors or as otherwise described in the Private Placement Memorandum, at
the per Share cash prices set forth in the Private Placement Memorandum. The Dealer Manager may also sell Shares for cash directly to its own clients and customers at the offering price and subject to the terms and conditions stated in the Private
Placement Memorandum. The Dealer Manager hereby accepts such agency and distributorship and agrees to use its best efforts to sell the Shares on said terms and conditions. The Dealer Manager represents to the Company that: (a) it is a member in
good standing of FINRA and a broker-dealer registered as such under the Exchange Act; (b) it and its employees and representatives have all required licenses and registrations to act under this Agreement; and (c) it has established and
implemented anti-money laundering compliance programs in accordance with applicable law, including applicable FINRA rules, rules of the SEC and the USA PATRIOT Act of 2001 or will require that its Dealers establish and implement such programs,
reasonably expected to detect and cause the reporting of suspicious transactions in connection with the sale of Shares. 

4.2       Except as may be provided in the “Plan of Distribution” section of the
Private Placement Memorandum, which may be amended and supplemented from time to time, as compensation for the services rendered by the Dealer Manager, the Company agrees that it will pay to the Dealer Manager selling commissions plus a dealer
manager fee as follows: 

  
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	 	  	 Selling Commissions

			
	 Distribution Channel
	  	Primary
Offering
Shares	 	DRP Shares
	 Sales through a Dealer earning transaction-based compensation
	  	6.5%*	 	0.0%*

 *  Except as set forth herein or in the “Plan of Distribution” section of
the Private Placement Memorandum (as amended and supplemented), the Dealer Manager will reallow all of its selling commissions attributable to a Dealer. 
  

					
	 	  	 Dealer Manager Fee

			
	 Distribution Channel
	  	Primary
Offering
Shares	 	DRP Shares
	 Sales through a Dealer earning transaction-based compensation
	  	2.0%*	 	0.0%

 *  Upon the terms set forth herein or in the Private Placement Memorandum (as
amended and supplemented), the Dealer Manager may agree to reallow to any Dealer a portion of its dealer manager fee pursuant to a separate marketing fee agreement. 

Upon the terms set forth in the Private Placement Memorandum, reduced selling commissions and dealer manager fees will be paid to the Dealer
Manager and reduced per share selling prices shall be recovered on large transactions in the primary Offering in accordance with the following table, which may be amended and supplemented by the Private Placement Memorandum: 

 

																																											
	 Dollar Volume Shares Purchased
	 	 	 Sales
Commissions
	 	 Dealer 
Manager Fee
	 	Price
Per
Share
to
Investor
at $8.90	 	 	Price
Per
Share
to
Investor
at $9.05	 	 	Price
Per
Share
to
Investor
at $9.20	 	 	Price
Per
Share
to
Investor
at $9.30	 	 	Price
Per
Share
to
Investor
at $9.40	 	 	Price
Per
Share
to
Investor
at $9.50	 	 	Price
per
Share
to
Investor
at $9.60	 	 	Price
per
Share
to
Investor
at $10.00	 
	
    $              0    
	  	to	  	 	    $1,000,000   	  	 	6.5%	 	2.0%	 	   $	8.90 	  	 	   $	9.05 	  	 	 $	9.20 	  	 	 $	9.30 	  	 	 $	9.40 	  	 	 $	9.50 	  	 	 $	9.60 	  	 	 $	10.00 	  
	     $1,000,001    
	  	to	  	 	    $2,000,000   	  	 	5.5%	 	2.0%	 	 	8.811 	  	 	 	8.960 	  	 	 	9.108 	  	 	 	9.207 	  	 	 	9.306 	  	 	 	9.405 	  	 	 	9.504 	  	 	 	9.900 	  
	     $2,000,001    
	  	to	  	 	    $3,000,000   	  	 	4.5%	 	2.0%	 	 	8.722 	  	 	 	8.869 	  	 	 	9.016 	  	 	 	9.114 	  	 	 	9.212 	  	 	 	9.310 	  	 	 	9.408 	  	 	 	9.800 	  
	     $3,000,001    
	  	to	  	 	    $4,000,000   	  	 	3.5%	 	1.5%	 	 	8.589 	  	 	 	8.733 	  	 	 	8.878 	  	 	 	8.975 	  	 	 	9.071 	  	 	 	9.168 	  	 	 	9.264 	  	 	 	9.650 	  
	     $4,000,001    
	  	to	  	 	   $10,000,000  	  	 	2.0%	 	1.5%	 	 	8.455 	  	 	 	8.598 	  	 	 	8.740 	  	 	 	8.835 	  	 	 	8.930 	  	 	 	9.025 	  	 	 	9.120 	  	 	 	9.500 	  
	  $10,000,001  
	  	        and above	  	 	1.0%	 	1.0%	 	 	8.322 	  	 	 	8.462 	  	 	 	8.602 	  	 	 	8.696 	  	 	 	8.789 	  	 	 	8.883 	  	 	 	8.976 	  	 	 	9.350 	  

 The reduced selling price, selling commission and dealer manager fee will apply to the entire
purchase. All commission rates and dealer manager fees are calculated on the discounted offering price per Share in the primary component of the Offering in effect on the date the investor’s subscription agreement is received in good order and
either (i) processed by the Company’s transfer agent, or (ii) confirmed for acceptance into the escrow account applicable to subscription proceeds received from Benefit Plan investors, as applicable to the Shares. 

  
 12 

 As described in the Private Placement Memorandum, the Dealer Manager may sell
Shares in the primary Offering to an investor who (i) pays a broker-dealer a “wrap fee,” (ii) has engaged a registered investment adviser with whom the investor has agreed to pay compensation for investment advisory services or
other financial or investment advice (other than a registered investment adviser that is also registered as a broker-dealer who does not have a fixed or wrap feature or other asset fee arrangement with the investor), or (iii) is investing
through a bank acting as trustee or fiduciary. The purchase price for such Shares shall be equal to 93.5% of the then-current offering price per Share in the primary component of the Offering, reflecting that selling commissions in the amount of
6.5% per Share will not be payable in connection with such sales. Thus, at a purchase price of $8.90, $9.05, $9.20, $9.30, $9.40, $9.50, $9.60 and $10.00 in the primary component of the Offering, Shares will be sold at $8.322, $8.462, $8.602,
$8.696, $8.789, $8.883, $8.976 and $9.35, respectively. 
 As described in the Private Placement Memorandum, the Dealer
Manager agrees to sell up to 5% of the Shares in the primary Offering to persons identified by the Company pursuant to the Company’s “friends and family” program. The purchase price for Shares under this program will be equal to 93.5%
of the then-current offering price per Share in the primary component of the Offering, reflecting that selling commissions in the amount of 6.5% per share will not be payable in connection with such sales. Thus, at a purchase price of $8.90,
$9.05, $9.20, $9.30, $9.40, $9.50, $9.60 and $10.00 in the primary component of the Offering, Shares will be sold at $8.322, $8.462, $8.602, $8.696, $8.789, $8.883, $8.976 and $9.35, respectively. The Dealer Manager agrees to work together with the
Company to implement this program and to execute sales under the program according to the procedures agreed upon by the Dealer Manager and the Company. 

In addition, as described in the Private Placement Memorandum, the Dealer Manager may sell Shares in the primary Offering to
Dealers, participating registered investment advisors, their retirement plans, their representatives and the family members, IRAs and the qualified plans of their representatives at a purchase price equal to 91.5% of the then-current offering price
per Share in the primary component of the Offering, reflecting that selling commissions in the amount of 6.5% per Share and the dealer manager fee of 2.0% per Share will not be payable in consideration of the services rendered by such
Dealers and other persons and their representatives in the Offering. Thus, at a purchase price of $8.90, $9.05, $9.20, $9.30, $9.40, $9.50, $9.60 and $10.00 in the primary component of the Offering, Shares will be sold at $8.144, $8.281, $8.418,
$8.510, $8.601, $8.693, $8.784 and $9.15, respectively. For purposes of this discount, a family member includes such person’s spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in law or brother- or sister-in-law. 

In addition, as described in the Private Placement Memorandum, the Dealer Manager may sell Shares in the primary Offering to
non-participating broker-dealers, registered investment advisers, their retirement plans, their representatives and the family members, IRAs and the qualified plans of their representatives at a purchase price equal to 92.5% of the then-current
offering price per Share in the primary component of the Offering, reflecting that selling commissions in the amount of 5.5% per Share and the dealer manager fee of 2.0% per Share will not be payable. A 1.0% selling commission will be paid
to the Dealer Manager and reallowed to the Dealer who processes the sale. Thus, at a purchase price of $8.90, $9.05, $9.20, $9.30, $9.40, $9.50, $9.60 and $10.00 in the primary component of the Offering, Shares will be sold at

  
 13 

 
$8.233, $8.371, $8.51, $8.603, $8.695, $8.788, $8.88 and $9.25, respectively. For purposes of this discount, a family member includes such person’s spouse, parent, child, sibling, mother- or
father-in-law, son- or daughter-in law or brother- or sister-in-law. 
 In addition, as described in the Private Placement
Memorandum, until the Company has raised $10,000,000 in gross proceeds in the primary Offering, the Dealer Manager will sell Shares in the primary Offering at an 8.5% discount to the then-current primary offering price if an investor purchases
Shares (a) through a registered investment adviser whose individual clients have invested at least $10,000,000 in the aggregate in KBS-sponsored programs including KBS REIT I, KBS REIT II, KBS REIT III, KBS Legacy Partners Apartment REIT, KBS
Strategic Opportunity REIT and KBS Strategic Opportunity REIT II, or (b) through a registered investment adviser who acts as a third party asset management provider. This discount of 8.5% in each case reflects the fact that a selling commission
of 6.5% and the dealer manager fee of 2% will not be paid in connection with such purchases. These discounts to the offering price are available only while the Company’s gross offering proceeds in the primary Offering are less than $10,000,000
and will not be available for any subscriptions processed after the third business day following the date on which the Company accepts aggregate gross primary offering proceeds of $10,000,000 in the Offering. Notwithstanding the foregoing,
subscriptions from Benefit Plan investors held in escrow will be eligible to receive the waived dealer manager fee on their subscription provided the gross offering proceeds were less than $10,000,000 on the date their subscription agreement was
received in good order and their funds were confirmed for acceptance into escrow. 
 Upon the terms set forth in the Private
Placement Memorandum, reduced dealer manager fees will be paid to the Dealer Manager and reduced per share selling prices shall be recovered on volume sales of Shares in the Primary offering sold net of selling commissions in accordance with the
following table, which may be amended and supplemented by the Private Placement Memorandum: 
  

																					
	 Volume Discount Table for Purchases Made Net
of Selling Commissions

										
	 Dollar Volume Shares Purchased
	  	Dealer
  Manager Fee  	 	Price
Per
Share
to
Investor
at
$8.322	 	  	Price
Per
Share
to
Investor
at
$8.462	  	Price
Per
Share
to
Investor
at
$8.602	  	Price
Per
Share
to
Investor
at
$8.696	  	Price
Per
Share
to
Investor
at
$8.789	  	Price
Per
Share
to
Investor
at
$8.883	  	Price
Per
Share
to
Investor
at
$8.976	  	Price
Per
Share
to
Investor
at
$9.350
	      $3,000,001        to    $10,000,000
	  	1.5%	 	 	8.277 	  	  	8.417	  	8.556	  	8.649	  	8.742	  	8.835	  	8.928	  	$9.30
	   $10,000,001                  and
above
	  	1.0%	 	 	8.233 	  	  	8.371	  	8.510	  	8.603	  	8.695	  	8.788	  	8.880	  	9.250

 *Price per share to investor assumes an initial discounted price of 93.5% of the current offering price, the dealer manager fee
is calculated based on the discounted offering price. 
 The Company will also reimburse the Dealer Manager for all items of
underwriter compensation referenced in the Private Placement Memorandum to the extent the Private Placement Memorandum indicates that they will be paid by the Company. The Company shall 

  
 14 

 
also pay directly or reimburse the Dealer Manager for invoiced due diligence expenses of the Dealers and non-participating broker-dealers as described in the Private Placement Memorandum. 

Notwithstanding the foregoing, no commissions, dealer manager fee or other payments will be paid to the Dealer Manager under
this Section 4.2 unless or until the Company has raised gross proceeds of $2,000,000 from the sale of its common stock whether in this Offering or in a separate private transaction outside of this Offering, including from persons who are
affiliated with the Company, its sponsor or its advisor (the “Minimum Offering”) and, with respect to subscriptions from Benefit Plan investors, unless or until the subscription funds from such Benefit Plan investor are released to
the Company from escrow as described in the Private Placement Memorandum. Until the Minimum Offering is reached, investments will be held in escrow. Further, until the release of funds from Benefit Plan investors as described above, investments from
Benefit Plan investors will be held in an account held by the escrow agent and no commissions, dealer manager fee or other payments will be paid thereon to the Dealer Manager under this Section 4.2 unless and until such investments from Benefit
Plan investors are released to the Company from escrow. If the Minimum Offering is not reached, investments will be returned to the investors in accordance with the Private Placement Memorandum. 

The Company will not be liable or responsible to any Dealer for direct payment of commissions or any reallowance of the dealer
manager fee to such Dealer, it being the sole and exclusive responsibility of the Dealer Manager for payment of commissions and any reallowance of the dealer manager fee to the Dealers. 

 

	5.	 Indemnification. 

5.1       The Company will indemnify and hold harmless the Dealers and the Dealer Manager,
their officers and directors and each person, if any, who controls such Dealer or Dealer Manager within the meaning of Section 15 of the Securities Act (collectively, the “Indemnified Persons”) from and against any losses,
claims, damages or liabilities, joint or several (collectively, the “Losses”), to which such Indemnified Persons may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions in respect
thereof) arise out of or are based upon (a) any untrue statement or alleged untrue statement of a material fact contained (i) in the Private Placement Memorandum or any amendment or supplement thereto or (ii) in any federal or state
securities filing or other document executed by the Company or on its behalf specifically for the purpose of exempting any or all of the Shares from the registration requirements under the securities laws of any jurisdiction or based upon
information furnished by the Company under the securities laws thereof (any such application, document or information being hereinafter called a “Filing”), or (iii) in any Authorized Sales Materials, or (b) the omission or
alleged omission to state in the Private Placement Memorandum or any amendment or supplement thereto, or in any Filing or Authorized Sales Materials, a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they are made, not misleading. The Company will reimburse each Indemnified Person for any legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating or defending such
Loss. 

  
 15 

 Notwithstanding the foregoing provisions of this Section 5.1, the Company will not be liable
in any such case to the extent that any such Loss or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished
(x) to the Company by the Dealer Manager, or (y) to the Company or the Dealer Manager by or on behalf of any Dealer, specifically for use with reference to such Dealer or Dealer Manager in the preparation of the Private Placement
Memorandum or any such amendment or supplement thereto, any such Filing or any Authorized Sales Material; and further, the Company will not be liable in any such case if it is determined that such Dealer or the Dealer Manager was at fault in
connection with the Loss, expense or action. 
 The foregoing indemnity agreement of this Section 5.1 is subject to the further
condition that, insofar as it relates to any untrue statement, alleged untrue statement, omission or alleged omission made in the Private Placement Memorandum (or amendment or supplement thereto) that was eliminated or remedied in any subsequent
amendment or supplement thereto, such indemnity agreement shall not inure to the benefit of an Indemnified Person from whom the person asserting any Losses purchased the Shares that are the subject thereof, if a copy of the Private Placement
Memorandum as so amended or supplemented was not sent or given to such person at or prior to the time the subscription of such person was accepted by the Company, but only if a copy of the Private Placement Memorandum as so amended or supplemented
had been supplied to the Dealer Manager or the Dealer prior to such acceptance. 

5.2       The Dealer Manager will indemnify and hold harmless the Company, its officers and
directors (including any persons named in the Private Placement Memorandum with his consent, as about to become a director), and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act (the
“Company Indemnified Persons”), from and against any Losses to which any of the Company Indemnified Persons may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions in respect
thereof) arise out of or are based upon: (a) any untrue statement of a material fact contained (i) in the Private Placement Memorandum or any amendment or supplement thereto, (ii) in any Filing or (iii) in any Authorized Sales
Materials; (b) the omission or alleged omission to state in the Private Placement Memorandum or any amendment or supplement thereto, in any Filing or in any Authorized Sales Material, a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they are made, not misleading, provided that clauses (a) and (b) apply to the extent, but only to the extent, that such untrue statement or omission was made in
reliance upon and in conformity with written information furnished to the Company by or on behalf of the Dealer Manager specifically for use with reference to the Dealer Manager in the preparation of the Private Placement Memorandum or any such
amendment or supplement thereto, or any such Filing or Authorized Sales Materials; (c) any use of sales literature not authorized or approved by the Company or any use of “broker-dealer use only” materials with members of the public
by the Dealer Manager in the offer and sale of the Shares or any use of sales literature in a particular jurisdiction if such material bears a legend denoting that it is not to be used in connection with the sale of Shares to members of the public
in such jurisdiction; (d) any untrue statement made by the Dealer Manager or its representatives or agents or omission to state a fact necessary in order to make the statements made, in light of the circumstances under which they were made, not
misleading in connection with the offer and sale of the Shares; (e) any material violation of 

  
 16 

 
this Agreement; (f) any failure to comply with applicable laws governing privacy issues, money laundering abatement and anti-terrorist financing efforts, including applicable rules of the
SEC, FINRA and the USA PATRIOT Act of 2001 and the regulations and programs administered by the OFAC at the U.S. Department of the Treasury; or (g) any other failure to comply with applicable rules of FINRA or federal or state securities laws
and the rules and regulations promulgated thereunder. The Dealer Manager will reimburse the aforesaid parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending such Loss, expense or action.
This indemnity agreement will be in addition to any liability that the Dealer Manager may otherwise have. 

5.3       Each Dealer severally will indemnify and hold harmless the Company, the Dealer
Manager and each of their officers and directors, and each person, if any, who controls the Company or the Dealer Manager within the meaning of Section 15 of the Securities Act (the “Dealer Indemnified Persons”) from and against any
Losses to which a Dealer Indemnified Person may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions in respect thereof) arise out of or are based upon (a) any untrue statement or alleged
untrue statement of a material fact contained (i) in the Private Placement Memorandum or any amendment or supplement thereto, (ii) in any Filing, or (iii) in any Authorized Sales Materials; (b) the omission or alleged omission to
state in the Private Placement Memorandum or any such amendment or supplement thereto, in any Filing or in any Authorized Sales Materials, a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading, provided that clauses (a) and (b) apply to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Company or the Dealer Manager by or on behalf of such Dealer specifically for use with reference to such Dealer in the preparation of the Private Placement Memorandum or any
such amendment or supplement thereto or any such Filing or Authorized Sales Materials; (c) any use of sales literature not authorized or approved by the Company or any use of “broker-dealer use only” materials with members of the
public by the Dealer in the offer and sale of the Shares or any use of sales literature in a particular jurisdiction if such material bears a legend denoting that it is not to be used in connection with the sale of Shares to members of the public in
such jurisdiction; (d) any untrue statement made by the Dealer or its representatives or agents or omission to state a fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading
in connection with the offer and sale of the Shares; (e) any material violation of this Agreement or the Selected Dealer Agreement entered into between the Dealer Manager and the Dealer; (f) any failure to comply with applicable laws
governing privacy issues, money laundering abatement and anti-terrorist financing efforts, including applicable rules of the SEC, FINRA and the USA PATRIOT Act of 2001 and the regulations and programs administered by the OFAC at the U.S. Department
of the Treasury; or (g) any other failure to comply with applicable rules of FINRA or federal or state securities laws and the rules and regulations promulgated thereunder. Each such Dealer will reimburse each Dealer Indemnified Person for any
legal or other expenses reasonably incurred by them in connection with investigating or defending any such Loss, expense or action. This indemnity agreement will be in addition to any liability that such Dealer may otherwise have. 

  
 17 

 5.4       Promptly after receipt by an
indemnified party under this Section 5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 5, notify in writing the
indemnifying party of the commencement thereof. The failure of an indemnified party to so to notify the indemnifying party will relieve such indemnifying party from any liability under this Section 5 as to the particular item for which
indemnification is then being sought, but not from any other liability that it may have to any indemnified party. In case any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof,
the indemnifying party will be entitled, to the extent it may wish, jointly with any other indemnifying party similarly notified, to participate in the defense thereof, with separate counsel. Such participation shall not relieve such indemnifying
party of the obligation to reimburse the indemnified party for reasonable legal and other expenses (subject to Section 5.5) incurred by such indemnified party in defending itself, except for such expenses incurred after the indemnifying party
has deposited funds sufficient to effect the settlement, with prejudice, of the claim in respect of which indemnity is sought. Any such indemnifying party shall not be liable to any such indemnified party on account of any settlement of any claim or
action effected without the consent of such indemnifying party. Any indemnified party shall not be bound to perform or refrain from performing any act pursuant to the terms of any settlement of any claim or action effected without the consent of
such indemnified party. 
 5.5       The indemnifying party shall pay all legal fees and
expenses of the indemnified party in the defense of such claims or actions for which indemnification is sought pursuant to this Section 5; provided, however, that the indemnifying party shall not be obligated to pay legal expenses and fees to
more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions giving rise to such claims notwithstanding that such actions or claims are alleged or brought by one or more parties against
more than one indemnified party. If such claims or actions are alleged or brought against more than one indemnified party, then the indemnifying party shall only be obliged to reimburse the expenses and fees of the one law firm that has been
selected by a majority of the indemnified parties against which such action is finally brought; and in the event a majority of such indemnified parties is unable to agree on which law firm for which expenses or fees will be reimbursable by the
indemnifying party, then payment shall be made to the first law firm of record representing an indemnified party against the action or claim. Such law firm shall be paid only to the extent of services performed by such law firm and no reimbursement
shall be payable to such law firm on account of legal services performed by another law firm. 
  

	6.	 Survival of Provisions. 

6.1       The respective agreements, representations and warranties of the Company and the
Dealer Manager set forth in this Agreement shall remain operative and in full force and effect regardless of (a) any investigation made by or on behalf of the Dealer Manager or any Dealer or any person controlling the Dealer Manager or any
Dealer or by or on behalf of the Company or any person controlling the Company; and (b) the acceptance of any payment for the Shares. 

6.2       The respective agreements and obligations of the Company and the Dealer Manager
set forth in Sections 2.4, 3.2, 3.6, 3.7, 3.8, 3.11, 4.2, 5 through 9 and 11 through 12 of this Agreement shall remain operative and in full force and effect regardless of (a) any 

  
 18 

 
investigation made by or on behalf of the Dealer Manager or any Dealer or any person controlling the Dealer Manager or any Dealer or by or on behalf of the Company or any person controlling the
Company, (b) the acceptance of any payment for the Shares and (c) the termination of this Agreement. 
  

	7.	 Applicable Law and Invalid Provision. 

7.1       This Agreement shall be governed by the laws of the State of Maryland; provided
however, that causes of action for violations of federal or state securities laws shall not be governed by this Section 7.1. 

7.2       The invalidity or unenforceability of any provision of this Agreement shall not
affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted. 
  

	8.	 Counterparts. 

This Agreement may be executed in any number of counterparts. Each counterpart, when executed and delivered, shall be an
original contract, but all counterparts, when taken together, shall constitute one and the same Agreement. 
  

	9.	 Successors and Assigns. 

9.1       This Agreement shall inure to the benefit of and be binding upon the Dealer
Manager, the Company and their respective successors and permitted assigns. This Agreement shall inure to the benefit of the Dealers to the extent set forth in Sections 1 and 4 hereof. Nothing in this Agreement is intended or shall be construed to
give to any other person any right, remedy or claim, except as otherwise specifically provided herein. 

9.2       No party shall assign this Agreement or any right, interest or benefit under this
Agreement without the prior written consent of the other party. 
  

	10.	 Amendments. 

This Agreement may be amended by the written agreement of the Dealer Manager and the Company. 

 

	11.	 Term. 

Any party to this Agreement shall have the right to terminate this Agreement on 60 days’ written notice or immediately
upon notice to the other party in the event that such other party shall have failed to comply with any material provision hereof. If not sooner terminated, the Dealer Manager’s agency and this Agreement shall terminate at the close of business
on the effective date that the Offering is terminated without obligation on the part of the Dealer Manager or the Company, except as set forth in this Agreement. Upon termination of this Agreement, (a) the Company shall pay to the Dealer
Manager all amounts payable under Section 4 hereof at such time as such amounts become payable and (b) the Dealer Manager shall 

  
 19 

 
promptly deliver to the Company all records and documents in its possession that relate to the Offering and that are not designated as “dealer” copies. 

 

	12.	 Customer Complaints. 

Each party hereby agrees to promptly provide to the other party copies of any written or otherwise documented complaints from
customers of the Dealer Manager or any Dealer received by such party relating in any way to the Offering (including, but not limited to, the manner in which the Shares are offered by the Dealer Manager or the Dealer). 

 

	13.	 No Partnership. 

Nothing in this Agreement shall be construed or interpreted to constitute the Dealer Manager as in association with or in
partnership with the Company; instead, this Agreement shall only constitute the Dealer Manager as a dealer authorized by the Company to sell and to manage the sale by others of the Shares according to the terms set forth in the Private Placement
Memorandum as amended or supplemented and in this Agreement. 
  

	14.	 Submission of Orders. 

14.1     Those persons who purchase Shares will be instructed by the Dealer Manager or the Dealer to
make their checks payable to “UMB Bank, N.A., as escrow agent for KBS Growth & Income REIT, Inc.” or, after the Minimum Offering has been achieved, to the Company, except with respect to Benefit Plan investors. Checks from Benefit
Plan investors must be made payable to “UMB Bank, N.A., as escrow agent for KBS Growth & Income REIT, Inc.” until the Company determines that it is no longer necessary to limit participation by Benefit Plan investors as described
in the Private Placement Memorandum (the “Benefit Plan Determination”). The Dealer Manager, any agent of the Dealer Manager and any Dealer receiving a check not conforming to the foregoing instructions shall return such check
directly to such subscriber not later than the end of the next business day following its receipt. Checks received by the Dealer Manager, any agent of the Dealer Manager or a Dealer that conform to the foregoing instructions shall be transmitted for
deposit pursuant to one of the methods described in this Section 14. 
 14.2     Where,
pursuant to a Dealer’s internal supervisory procedures, internal supervisory review is conducted at the same location at which subscription documents and checks are received from subscribers, checks will be transmitted by the end of the next
business day following receipt by the Dealer for deposit to the escrow agent for the Company or, after the Minimum Offering has been achieved, to the Company or its agent, except for investments from Benefit Plan investors. The Dealer will transmit
checks from Benefit Plan investors for deposit to the escrow agent for the Company or, after the Benefit Plan Determination has been made, to the Company or its agent. 

14.3     Where, pursuant to a Dealer’s internal supervisory procedures, final internal
supervisory review is conducted at a different location, checks will be transmitted by the end of the next business day following receipt by the Dealer to the office of the Dealer conducting such final internal supervisory review (the “Final
Review Office”). The Final Review Office will in turn by the end of the next business day following receipt by the Final Review Office, transmit 

  
 20 

 
such checks for deposit to the escrow agent for the Company or, after the Minimum Offering has been achieved, to the Company or its agent, except for investments from Benefit Plan investors. The
Final Review Office will transmit checks from Benefit Plan investors for deposit to the escrow agent for the Company or, after the Benefit Plan Determination has been made, to the Company or its agent. 

14.4     Where the Dealer Manager (or its agent) receives investor proceeds, checks will be
transmitted by the Dealer Manager (or its agent) for deposit to the escrow agent for the Company or, after the Minimum Offering has been achieved, to the Company or its agent as soon as practicable but in any event by the end of the second business
day following receipt by the Dealer Manager (or its agent), except for investments from Benefit Plan investors. The Dealer Manager (or its agent) will transmit checks from Benefit Plan investors for deposit to the escrow agent for the Company or,
after the Benefit Plan Determination has been made, to the Company or its agent. Checks of rejected potential investors will be promptly returned to such potential investors. 

14.5     Notwithstanding the above, the Dealer Manager may authorize certain Dealers that are
“$250,000 broker-dealers” to instruct their customers to make their checks for Shares subscribed for payable directly to the Dealer or authorize a debit from the customer’s account maintained with the Dealer for the amount of shares
subscribed for by the customer. In such case, until the Minimum Offering has been achieved, the Dealer will collect the proceeds of the subscribers’ checks and debits and wire funds to the escrow agent for the Company or, if instructed by the
Dealer Manager, issue a check for the aggregate amount of the subscription proceeds made payable to the order of the escrow agent. After the Minimum Offering has been achieved, the Dealer will collect the proceeds of the subscribers’ checks and
debits and wire funds to the Company or, if instructed by the Dealer Manager, issue a check for the aggregate amount of the subscription proceeds made payable to “KBS Growth & Income REIT, Inc.” except for investments from Benefit
Plan investors. Until the Benefit Plan Determination has been made by the Company, the Dealer will collect the proceeds of the Benefit Plan investors’ checks and debits and wire funds to the escrow agent or, if instructed by the Dealer Manager,
issue a check for the aggregate amount of the subscription proceeds from Benefit Plan investors made payable to the order of the escrow agent. The procedures for the transmittal of checks and wiring of funds of $250,000 broker-dealers will be set
forth in the agreements between the $250,000 broker-dealer and the Dealer Manager. 
 [SIGNATURES ON FOLLOWING PAGES] 

  
 21 

 If the foregoing correctly sets forth our understanding, please indicate your
acceptance thereof in the space provided below for that purpose, whereupon this letter and your acceptance shall constitute a binding agreement between us effective as of the date first above written. 

 

			
		 	Very truly yours,
		
		 	KBS GROWTH & INCOME REIT, INC.
		
		 	By: /s/ Charles J. Schreiber, Jr.

					
		 		 	  

		 		 	      Name:  Charles J. Schreiber, Jr.
		 		 	      Title:  Chief Executive Officer

  

			
	Accepted and agreed effective as of the	 	
	date first above written.	 	
		
	KBS CAPITAL MARKETS GROUP LLC	 	
		
	By: /s/ Hans Henselman	 	

					
		 	  
	 	
		 	  Name:  Hans Henselman	 	
		 	  Title:  Chief Operating Officer, Chief Compliance Officer	 	

  
 22 

 EXHIBIT A 
  

KBS GROWTH & INCOME REIT, INC. 

Up to $105,000,000 of Class A Shares of Common Stock 

Offered to accredited investors only 

FORM OF SELECTED DEALER AGREEMENT 
 Ladies and
Gentlemen: 
 KBS Capital Markets Group LLC, as the dealer manager (the “Dealer Manager”) for KBS Growth & Income
REIT, Inc. (the “Company”), a Maryland corporation, invites you (the “Dealer”) to participate in the distribution of Class A shares of common stock (the “Shares”) of the Company subject to the
following terms. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Dealer Manager Agreement between the Dealer Manager and the Company, dated June 11, 2015, in the form attached hereto as Exhibit A (the
“Dealer Manager Agreement”). 
  

	I.	Dealer Manager Agreement 

 By your acceptance of this Agreement, you will become one of
the Dealers referred to in the Dealer Manager Agreement and will be entitled and subject to the provisions contained in such Dealer Manager Agreement related to the Dealers, including the representations and warranties of the Company contained in
Section 1 of the Dealer Manager Agreement and the indemnification provisions contained in Section 5 of the Dealer Manager Agreement, including specifically the provisions of such Dealer Manager Agreement (Section 5.3) wherein each
Dealer severally agrees to indemnify and hold harmless the Company, the Dealer Manager and each their officers and directors, and each person, if any, who controls the Company and the Dealer Manager within the meaning of Section 15 the
Securities Act of 1933, as amended (the “Securities Act”). The indemnification agreements contained in Section 5 of the Dealer Manager Agreement shall survive the termination of this Agreement and the Dealer Manager Agreement.

 The Dealer hereby agrees to use its best efforts to sell the Shares for cash on the terms and conditions stated in the Company’s
Confidential Private Placement Memorandum dated June 11, 2015, as it may be amended or supplemented from time to time (the “Private Placement Memorandum”). 

 

	II.	Submission of Orders 

 Those persons who purchase Shares will be instructed by the Dealer to make their
checks payable to “UMB Bank, N.A., as escrow agent for KBS Growth & Income REIT, Inc.” or, after the Minimum Offering has been achieved, to the Company, except with respect to Benefit Plan

  
 A-1 

 
investors. Checks from Benefit Plan investors must be made payable to “UMB Bank, N.A., as escrow agent for KBS Growth & Income REIT, Inc.” until the Benefit Plan Determination
has been made. The Dealer will return any check it receives not conforming to the foregoing instructions directly to such subscriber not later than the end of the next business day following its receipt. Checks received by the Dealer that conform to
the foregoing instructions shall be transmitted for deposit pursuant to one of the following methods: 
 Where, pursuant to the
Dealer’s internal supervisory procedures, internal supervisory review is conducted at the same location at which subscription documents and checks are received from subscribers, checks will be transmitted by the end of the next business day
following receipt by the Dealer for deposit to the escrow agent for the Company or, after the Minimum Offering has been achieved, to the Company or its agent, except for investments from Benefit Plan investors. The Dealer will transmit checks from
Benefit Plan investors for deposit to the escrow agent for the Company or, after the Benefit Plan Determination has been made, to the Company or its agent. 

Where, pursuant to the Dealer’s internal supervisory procedures, final internal supervisory review is conducted at a different location,
checks will be transmitted by the end of the next business day following receipt by the Dealer to the office of the Dealer conducting such final internal supervisory review (the “Final Review Office”). The Final Review Office will
in turn by the end of the next business day following receipt by the Final Review Office transmit such checks for deposit to the escrow agent for the Company or, after the Minimum Offering has been achieved, to the Company or its agent, except for
investments from Benefit Plan investors. The Final Review Office will transmit checks from Benefit Plan investors for deposit to the escrow agent for the Company or, after the Benefit Plan Determination has been made, to the Company or its agent.

  

	III.	Pricing 

 Except as otherwise provided in the “Plan of Distribution” section
of the Private Placement Memorandum (as amended and supplemented), the Shares are to be sold at a per Share cash price as follows: 

  
 A-2 

							
	 Distribution Channel
	  	Aggregate Gross Primary
Offering Proceeds Raised*                  
  	  	Primary Offering 
Shares*	  	DRP
Shares**        
	 Sales through a Dealer earning transaction-based compensation
	  	$0	  	$8.90	  	$8.455
		  	$4,999,999	  	$9.05	  	$8.598
		  	$9,999,999	  	$9.20	  	$8.740
		  	$19,999,999	  	$9.30	  	$8.835
		  	$39,999,999	  	$9.40	  	$8.930
		  	$59,999,999	  	$9.50	  	$9.025
		  	$79,999,999	  	$9.60	  	$9.120

  

	*	Shares purchased through a registered investment adviser who acts as a third party asset management provider will not count towards aggregate gross primary offering proceeds raised for purposes of determining whether
the thresholds to increase the offering price have been met. 

	**	DRP Shares are priced at 95% of the then-current offering price for Shares in a primary offering (whether in the primary Offering or a follow-on primary offering and ignoring any discounts that may be available to
certain categories of purchasers) or 95% of the most recent offering price in a primary offering if there is no current offering. Once the Company establishes an estimated net asset value (“NAV”) per Share, Shares issued pursuant to the
Company’s DRP will be priced at 95% of the estimated NAV per share of the Company’s common stock. 

Until the Company commences an initial public offering, the per Share price increase will take effect on the second business
day following the day on which the Company has raised aggregate gross primary offering proceeds as indicated above. Shares in the Offering will be purchased at the offering price in effect on the date a subscription agreement is received in good
order and either (i) processed by the Company’s transfer agent, or (ii) confirmed for acceptance into the escrow account applicable to subscription proceeds received from Benefit Plan investors, as applicable to the Shares. 

Notwithstanding the pricing set forth above, if the Company commences an initial public offering, the Company will increase
the offering price per Share in this primary Offering to $10.00 (with discounts available to certain categories of purchasers) and the purchase price per Share under the DRP will increase to $9.50, to match the prices at which Class A Shares of
the Company’s common stock will be offered in the public offering. 
 Upon the terms set forth in the Private Placement Memorandum,
pursuant to the Company’s volume discount program, Shares in the primary Offering shall be sold at reduced prices in accordance with the following table, which may be amended and supplemented by the Private Placement Memorandum: 

  
 A-3 

																																					
	 Dollar Volume Shares Purchased
	 	Sales
Commissions	 	Dealer
Manager Fee	 	Price
Per
Share
to
Investor
at $8.90	 	 	Price
Per
Share
to
Investor
at
$9.05	 	 	Price
Per
Share
to
Investor
at $9.20	 	 	Price
Per
Share
to
Investor
at $9.30	 	 	Price
Per
Share
to
Investor
at
$9.40	 	 	Price
Per
Share
to
Investor
at $9.50	 	 	Price
per
Share
to
Investor
at $9.60	 	 	Price
per
Share
to
Investor
at
$10.00	 
	
    $             0    to    
 $1,000,000
	 	6.5%	 	2.0%	 	 	   $ 8.90 	  	 	 	  $ 9.05 	  	 	 	  $ 9.20 	  	 	 	   $ 9.30 	  	 	 	 $ 9.40 	  	 	 	   $ 9.50 	  	 	 	  $  9.60 	  	 	 	  $10.00 	  
	    $1,000,001    to     $2,000,000
	 	5.5%	 	2.0%	 	 	8.811 	  	 	 	8.960 	  	 	 	9.108 	  	 	 	9.207 	  	 	 	9.306 	  	 	 	9.405 	  	 	 	9.504 	  	 	 	9.900 	  
	    $2,000,001    to     $3,000,000
	 	4.5%	 	2.0%	 	 	8.722 	  	 	 	8.869 	  	 	 	9.016 	  	 	 	9.114 	  	 	 	9.212 	  	 	 	9.310 	  	 	 	9.408 	  	 	 	9.800 	  
	    $3,000,001    to     $4,000,000
	 	3.5%	 	1.5%	 	 	8.589 	  	 	 	8.733 	  	 	 	8.878 	  	 	 	8.975 	  	 	 	9.071 	  	 	 	9.168 	  	 	 	9.264 	  	 	 	9.650 	  
	    $4,000,001    to    $10,000,000
	 	2.0%	 	1.5%	 	 	8.455 	  	 	 	8.598 	  	 	 	8.740 	  	 	 	8.835 	  	 	 	8.930 	  	 	 	9.025 	  	 	 	9.120 	  	 	 	9.500 	  
	 $10,000,001                and above
	 	1.0%	 	1.0%	 	 	8.322 	  	 	 	8.462 	  	 	 	8.602 	  	 	 	8.696 	  	 	 	8.789 	  	 	 	8.883 	  	 	 	8.976 	  	 	 	9.350 	  

 The reduced selling price (and the applicable selling commission and dealer manager fee under the volume
discount program) will apply to the entire purchase. For example, a purchase of 250,000 shares in a single transaction when the current offering price is $9.20 per share would result in a purchase price of $2,254,000 ($9.016 per share). 

In addition, as described in the Private Placement Memorandum, the Dealer Manager may sell Shares in the primary Offering to the Dealer, its
retirement plans, its representatives and the family members, IRAs and the qualified plans of its representatives at a purchase price equal to 91.5% of the then-current offering price per Share in the primary component of the Offering, reflecting
that selling commissions in the amount of 6.5% per Share and the dealer manager fee of 2.0% per Share will not be payable in consideration of the services rendered by the Dealer and its representatives in the Offering. Thus, at a purchase
price of $8.90, $9.05, $9.20, $9.30, $9.40, $9.50, $9.60 and $10.00 in the primary component of the Offering, Shares will be sold at $8.144, $8.281, $8.418, $8.51, $8.601, $8.693, $8.784 and $9.15, respectively. For purposes of this discount, a
family member includes such person’s spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in law or brother- or sister-in-law. 

In addition, as described in the Private Placement Memorandum, the Dealer Manager may sell Shares in the primary Offering to non-participating
broker-dealers, registered investment advisers, their retirement plans, their representatives and the family members, IRAs and the qualified plans of their representatives at a purchase price equal to 92.5% of the then-current offering price per
Share in the primary component of the Offering, reflecting that selling commissions in the amount of 5.5% per Share and the dealer manager fee of 2.0% per Share will not be payable. A 1.0% selling commission will be paid to the Dealer
Manager in connection with such sales. If the Dealer processes the sale of such Shares, the Dealer Manager will reallow to the Dealer such 1.0% selling commission in consideration of the Dealer processing such sale. Thus, at a purchase price of
$8.90, $9.05, $9.20, $9.30, $9.40, $9.50, $9.60 and $10.00 in the primary component of the Offering, Shares will be sold at $8.233, $8.371, $8.51, $8.603, $8.695, $8.788, $8.88 and $9.25, respectively. For purposes of this discount, a family member
includes such person’s spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in law or brother- or sister-in-law. 

  
 A-4 

 Upon the terms set forth in the Private Placement Memorandum, reduced dealer manager fees will be
paid to the Dealer Manager and reduced per share selling prices shall be recovered on volume sales of Shares in the primary offering sold net of selling commissions in accordance with the following table, which may be amended and supplemented by the
Private Placement Memorandum: 
  

																					
	 Volume Discount Table for Purchases Made Net
of Selling Commissions

										
	
      Dollar Volume Shares Purchased      
	  	Dealer
Manager Fee	 	Price
Per
Share
to
Investor
at
$8.322	 	  	Price
Per
Share
to
Investor
at
$8.462	  	Price
Per
Share
to
Investor
at
$8.602	  	Price
Per
Share
to
Investor
at
$8.696	  	Price
Per
Share
to
Investor
at
$8.789	  	Price
Per
Share
to
Investor
at
$8.883	  	Price
Per
Share
to
Investor
at
$8.976	  	Price
Per
Share
to
Investor
at
$9.350
	
    $3,000,001          to       
$10,000,000
	  	1.5%	 	 	 8.277 	  	  	8.417	  	8.556	  	8.649	  	8.742	  	8.835	  	8.928	  	$9.30
	
 $10,000,001                       
and above
	  	1.0%	 	 	 8.233 	  	  	8.371	  	8.510	  	8.603	  	8.695	  	8.788	  	8.880	  	9.250

 * Price per share to investor assumes an initial discounted price of 93.5% of the current offering price,
the dealer manager fee is calculated based on the discounted offering price. 
  

	IV.	Dealer’s Commissions 

 Except for discounts described in or as otherwise provided
in the “Plan of Distribution” section of the Private Placement Memorandum (as amended and supplemented), the Dealer’s selling commission applicable to the offering price of the Shares sold by the Dealer, which it is authorized to sell
hereunder, is as follows: 
  

					
	 	  	 Selling Commissions

	Distribution Channel	  	     Primary

    Offering

    Shares
	 	DRP  
	 Sales through a Dealer earning transaction-based compensation
	  	    6.5%	 	0.0%  

 The preceding commission (for the Dealer distribution channel) shall be adjusted for sales in the primary
Offering under the volume discount program in accordance with the following table, which may be amended and supplemented by the Private Placement Memorandum: 
  

					
	 Dollar Volume Shares Purchased
	  	Sales
  Commissions  	 	Dealer 
  Manager Fee  
	
    $              0       
   to       $1,000,000
	  	6.5%	 	2.0%
	
    $1,000,001          to       
$2,000,000
	  	5.5%	 	2.0%
	
    $2,000,001          to       
$3,000,000
	  	4.5%	 	2.0%
	
    $3,000,001          to       
$4,000,000
	  	3.5%	 	1.5%
	
    $4,000,001          to      $10,000,000
	  	2.0%	 	1.5%
	
 $10,000,001                       
  and above
	  	1.0%	 	1.0%

  
 A-5 

 Upon the terms set forth in the Private Placement Memorandum, reduced dealer manager fees will be
paid to the Dealer Manager on volume sales of Shares in the primary Offering sold net of selling commissions in accordance with the following table, which may be amended and supplemented by the Private Placement Memorandum: 

 

					
	 Dollar Volume Shares Purchased
	 	 Dealer Manager Fee
	 	 
	
      $3,000,001            to     
               $10,000,000
	 	1.5%	 
	
   $10,000,001                     
                 and above
	 	1.0%	 

 The reduced selling commission and dealer manager fee will apply to the entire purchase. All commission rates
and dealer manager fees are calculated on the discounted offering price per Share in the primary component of the Offering in effect on the date the investor’s subscription agreement is received in good order and either (i) processed by
the Company’s transfer agent, or (ii) confirmed for acceptance into the escrow account applicable to subscription proceeds received from Benefit Plan investors, as applicable to the Shares. 

All selling commissions shall be based on Shares sold by Dealer and accepted and confirmed by the Company, which commission will be paid by
the Dealer Manager. For these purposes, a “sale of Shares” shall occur if and only if a transaction has closed with a subscriber for Shares pursuant to all applicable offering and subscription documents, payment for the Shares has been
received by the Company in full in the manner provided in Section II hereof, the Company has accepted the subscription agreement of such subscriber, the Minimum Offering has been achieved and, with respect to Benefit Plan investors, subscription
funds have been released to the Company from escrow as described in the Private Placement Memorandum, and the Company has thereafter distributed the commission to the Dealer Manager in connection with such transaction. The Dealer affirms that the
Dealer Manager’s liability for commissions payable and any reallowance of a portion of the dealer manager fee as described below is limited solely to the proceeds of commissions or dealer manager fee, as applicable, receivable from the Company
and the Dealer hereby waives any and all rights to receive payment of commissions or reallowance of a portion of the dealer manager fee, as applicable, due until such time as the Dealer Manager is in receipt of the commission or dealer manager fee,
as applicable, from the Company. 
 Upon the terms set forth herein or in the Private Placement Memorandum (as amended and supplemented),
the Dealer Manager may agree to reallow to any Dealer a portion of its dealer manager fee pursuant to a separate marketing fee agreement. For volume discount sales of $3,000,001 or more, the dealer manager fee is reduced as set forth above. The
amount of the dealer manager fee reallowed to a Dealer in that instance will be negotiated on a transaction by transaction basis. The Dealer Manager or, in certain cases at the option of the Company, the Company will pay or reimburse invoiced due
diligence expenses of Dealer. 
 The parties hereby agree that the foregoing commission and any reallowed dealer manager fee are not in
excess of the usual and customary distributors’ or sellers’ commission received in the sale of securities similar to the Shares, that Dealer’s interest in the offering is limited to such commission and any reallowed dealer manager fee
from the Dealer Manager and 

  
 A-6 

 
Dealer’s indemnity referred to in Section 5 of the Dealer Manager Agreement and that the Company is not liable or responsible for the direct payment of such commission or any reallowed
dealer manager fee to the Dealer. 
  

	V.	Payment 

 Payment of selling commissions or any reallowance of a portion of the dealer
manager fee will be made by the Dealer Manager to the Dealer within 30 days of the receipt by the Dealer Manager of the gross commission or dealer manager fees, as applicable, from the Company. Dealer acknowledges that, if the Company pays selling
commissions or reallows dealer manager fees to the Dealer Manager, the Company is relieved of any obligation for selling commissions or reallowance of dealer manager fees to the Dealer. The Company may rely on and use the preceding acknowledgment as
a defense against any claim by the Dealer for selling commissions or dealer manager fees the Company pays to Dealer Manager but that Dealer Manager fails to remit to the Dealer. 

 

	VI.	Right to Reject Orders or Cancel Sales 

 All orders, whether initial or additional, are
subject to acceptance by and shall only become effective upon confirmation by the Company. The Dealer agrees that the Company, in its sole and absolute discretion, may accept or reject any subscription, in whole or in part, for any reason
whatsoever, and no commission will be paid to the Dealer with respect to the portion of any subscription that is rejected. Orders not accompanied by a Subscription Agreement with the signature page and the required check in payment for the Shares
may be rejected. Issuance and delivery of the Shares will be made only after actual receipt of payment therefor. If any check is not paid upon presentment, or if the Company is not in actual receipt of clearinghouse funds or cash, certified or
cashier’s check or the equivalent in payment for the Shares, the Company reserves the right to cancel the sale without notice. In the event an order is rejected, canceled or rescinded for any reason, the Dealer agrees to return to the Dealer
Manager any commission theretofore paid with respect to such order within 30 days thereafter and, failing to do so, the Dealer Manager shall have the right to offset amounts owed against future commissions due and otherwise payable to the Dealer.

  

	VII.	Covenants and Agreements of the Dealer 

 Dealer covenants and agrees with the Dealer
Manager and the Company that: 
  

	 	7.1	Dealer will use its best efforts to sell the Shares for cash on the terms and conditions set forth in this Agreement and the Private Placement Memorandum. 

  
 A-7 

	 	7.2	In connection with the Dealer’s participation in the offer and sale of Shares (including, without limitation, all initial and additional subscriptions for Shares and any resales and transfers of Shares), the Dealer
will comply with all requirements and obligations imposed upon it by (a) the Securities Act, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the SEC promulgated under both
such acts; (b) all applicable state securities laws and regulations as from time to time in effect; (c) the applicable rules of FINRA, including, but not in any way limited to, Rule 2420 of the NASD Conduct Rules, FINRA Rule 2121 and FINRA
Rule 5141; (d) all applicable rules and regulations relating to the suitability of investors; (e) any other state and federal laws and regulations applicable to the Offering, the sale of Shares or the activities of the Dealer pursuant to
this Agreement, including without limitation the privacy standards and requirements of state and federal laws, including the Gramm-Leach-Bliley Act of 1999, and the laws governing money laundering abatement and anti-terrorist financing efforts,
including the applicable rules of the SEC and FINRA, the Bank Secrecy Act, as amended, the USA Patriot Act of 2001, and regulations administered by the Office of Foreign Asset Control at the Department of the Treasury; and (f) this Agreement
and the Private Placement Memorandum as amended and supplemented. 

  

	 	7.3	The Dealer will not offer Shares in any jurisdiction unless and until (a) the Dealer has been advised in writing by the Company or the Dealer Manager that the Shares are exempt from the securities laws of such
jurisdiction and (b) the Dealer has all required licenses and registrations to offer shares in that jurisdiction. 

  

	 	7.4	The Dealer will offer Shares (both at the time of an initial subscription and at the time of any additional subscription) only to persons who meet the financial qualifications and suitability standards set forth in the
Private Placement Memorandum as amended or supplemented or in any suitability letter or memorandum sent to the Dealer by the Company or the Dealer Manager. In offering Shares, the Dealer will comply with the provisions of all applicable rules and
regulations relating to suitability of investors, including without limitation, the provisions of Regulation D, Rule 506 promulgated under the Securities Act and FINRA Rule 2111. 

 

	 	7.5	The Dealer agrees to maintain a record of the information obtained to determine that an investor meets the financial qualification and suitability standards imposed on the offer and sale of the Shares (both at the time
of the initial subscription and at the time of any additional subscriptions) (the “Suitability Records”), for a period of six years from the date of the sale of the Shares. The Dealer further agrees to make the Suitability Records
available to the Dealer Manager and the Company upon request and to make them available to representatives of the SEC and FINRA and applicable state securities administrators upon the Dealer’s receipt of a subpoena or other appropriate document
request from such agency. 

  
 A-8 

	 	7.6	If requested by the Company, the Dealer shall obtain from subscribers for the Shares, other documentation reasonably deemed by the Company to be required under applicable law or as may be necessary to reflect the
policies of the Company. Such documentation may include, without limitation, subscribers’ written acknowledgement and agreement to the privacy policies of the Company. 

 

	 	7.7	The Dealer will provide the Dealer Manager with such information relating to the offer and sale of the Shares by it as the Dealer Manager may from time to time reasonably request or as may be requested to enable the
Dealer Manager or the Company, as the case may be, to prepare such reports of sale as may be required to be filed under applicable federal or state securities laws and the rules and regulations thereunder. 

 

	 	7.8	Further, the Dealer specifically agrees as set forth below: 

  

	 	(a)	 Shares shall not be offered and/or sold by the Dealer by means of any form of general solicitation or general advertising, including, but not
limited to, the following: 

  

	 	(1)	 any advertisement, article, notice, or other communication published in any newspaper, magazine or similar media, cold mass mailings, broadcasts
over television or radio, material contained on a website available to the public or an e-mail message sent to a large number of previously unknown persons; 

  

	 	(2)	 any seminar or meeting whose attendees have been invited by any general solicitation or general advertising; or 

 

	 	(3)	 any letter, circular, notice, or other written communication constituting a form of general solicitation or general advertising.

  

	 	(b)	In connection with any offer or sale of the Shares, the Dealer agrees to the following: 

(1) to comply in all respects with statements set forth in the Private Placement Memorandum and any
supplements or amendments to the Private Placement Memorandum; 
  

	 	(2)	 not to make any statement inconsistent with the statements in the Private Placement Memorandum and any supplements or amendments to the Private
Placement Memorandum; 

  

	 	(3)	 not to make any untrue or misleading statements of a material fact in connection with the Shares; and 

 

	 	(4)	 not to provide any written information, statements, or sales materials other than the Private Placement Memorandum and any supplements or
amendments thereto and any supplemental information, unless approved in writing by the Dealer Manager. 

  
 A-9 

	 	(c)	The Dealer: 

  

	 	(1)	acknowledges that any Registration Statement on Form S-11 or any draft registration statement submitted confidentially to the SEC pursuant to Section 6(e) of the Securities Act for an initial public offering of the
shares of common stock of the Company (the “Registration Statement”) relates only to the initial public offering of shares of common stock of the Company and not to this Offering; 

 

	 	(2)	agrees that it will not utilize the Registration Statement or the prospectus that forms a part thereof in connection with the marketing of this Offering; and 

 

	 	(3)	agrees that it will not offer or sell Shares in this Offering to any person who contacts the Dealer as a result of reviewing or receiving the Registration Statement or the prospectus that forms a part thereof.

  

	 	(d)	The Dealer shall advise each offeree of Shares in the Company at the time of the initial offering to such offeree that the Company shall, during the course of the Offering and a reasonable time before sale, accord
offeree and offeree’s agents or representatives, if any, the opportunity to ask questions and receive answers concerning the terms and conditions of the Offering and to obtain any additional information, to the extent possessed or obtainable by
the Company without unreasonable effort or expense, that is necessary to verify the accuracy of the information contained in the Private Placement Memorandum. 

  

	 	(e)	Before the sale of any of the Shares, the Dealer shall make reasonable inquiry to determine if the offeree is acquiring the Shares for offeree’s own account or on behalf of other persons, and that the offeree
understands the limitations on the offeree’s disposition of the Shares set forth in Rule 502(d) of Regulation D. This includes a determination by the Dealer that the offeree understands that he must bear the economic risk of the investment for
an indefinite period of time because the Shares have not been registered under the Securities Act and, thus, cannot be sold unless the Shares are subsequently registered under the Securities Act or an exemption from registration under the Securities
Act is available. 

  

	 	(f)	Before the sale of any of the Shares, the Dealer shall: 

  

	 	(1)	 have reasonable grounds to believe that each subscriber is an “accredited investor” as that term is then defined in Rule 501(a) of
Regulation D; and 

  

	 	(2)	 have sufficient information concerning the offeree to determine that the offeree has such knowledge and experience in financial and business

  
 A-10 

	 	 
matters that the offeree is capable of evaluating the merits and risks of an investment in the Company. 

 

	 	(g)	The Dealer shall not distribute a Private Placement Memorandum, supplement or amendment thereto or any supplemental information to any offeree with whom the Dealer does not have a pre-existing substantive relationship,
as defined from time to time by the SEC. The SEC makes this determination on a case-by-case basis, taking into account all relevant facts and circumstances. However, generally, such relationship must exist before the date on which the Dealer enters
into this Agreement and must allow the Dealer to determine and understand the prospective investor’s investment objectives, sophistication and financial situation and whether an investment in the Shares is suitable for such prospective
investor. 

  

	 	(h)	The Dealer shall complete and deliver to the Dealer Manager or the Company such certifications or other documentation requested by such parties regarding the Dealer’s determinations referenced in paragraphs
(d) through (g) above, including, without limitation, a certificate stating the number of each Private Placement Memorandum delivered to each offeree, and a confirmation that the Dealer reasonably believes that each such offeree is an
“accredited investor” as that term is then defined in Rule 501(a) of Regulation D. 

  

	 	(i)	Shares shall not be sold by the Dealer to any non-accredited investors. 

  

	 	  7.9	The Dealer represents that neither it, nor any of its directors, executive officers, general partners, managing members or other officers participating in the offering of Shares, nor any of the directors, executive
officers or other officers participating in the offering of Shares of any such general partner or managing member, nor any other officers, employees or associated persons of the Dealer or any such general partner or managing member that have been or
will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Shares (each, a “Dealer Covered Person” and, together, “Dealer Covered Persons”), is subject to
any Disqualification Event except for a Disqualification Event (i) contemplated by Rule 506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to the Dealer Manager prior to the date hereof.

  

	 	7.10	The Dealer represents that it is not a party to any agreement other than this Agreement regarding the payment (directly or indirectly) of remuneration for solicitation of purchasers in connection with the sale of any
Shares. The Dealer will notify the Dealer Manager of any such agreement entered into between the Dealer and any other person. 

  

	 	7.11	 The representations and warranties in Sections 7.9 and 7.10 above are and shall be continuing representations and warranties throughout the term of
the Offering. The Dealer will notify the Dealer Manager in writing promptly upon the occurrence of (i) any Disqualification Event relating to any Dealer Covered Person not previously disclosed to the Company in accordance with Section 7.9
above, and (ii) any event 

  
 A-11 

	 	 
that would, with the passage of time, become a Disqualification Event relating to any Dealer Covered Person. 

 

	 	7.12	The Dealer shall provide to the Dealer Manager or the Company such certifications, documentation and other information as reasonably requested from time to time by the Dealer Manager or the Company as such parties deem
necessary or advisable to carry out the exercise of reasonable care under Rule 506(d) and (e) under the Securities Act in connection with this Offering. 

  

	 	7.13	The Dealer agrees to be bound by the terms of the Escrow Agreement dated June 11, 2015, among UMB Bank, N.A., as escrow agent, the Dealer Manager and the Company, a copy of which is attached hereto as Exhibit
B, and the Dealer further agrees that it will not represent or imply that UMB Bank, N.A., as the escrow agent identified in the Private Placement Memorandum, has investigated the desirability or advisability of an investment in the Company or
has approved, endorsed or passed upon the merits of the Shares or of the Company, nor will the Dealer use the name of said escrow agent in any manner whatsoever in connection with the offer or sale of the Shares other than by acknowledgment that it
has agreed to serve as escrow agent. 

  

	 	VIII.	Representations, Covenants and Agreements of the Dealer Manager 

  

	 	8.1	The Dealer Manager represents that neither it, nor any of its directors, executive officers, general partners, managing members or other officers participating in the offering of Shares, nor any of the directors,
executive officers or other officers participating in the offering of Shares of any such general partner or managing member, nor any other officers, employees or associated persons of the Dealer Manager or any such general partner or managing member
that have been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Shares (each, a “Dealer Manager Covered Person” and, together, “Dealer Manager Covered
Persons”), is subject to any Disqualification Event except for a Disqualification Event (i) contemplated by Rule 506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to the Dealer prior to
the date hereof. 

  

	 	8.2	The Dealer Manager will notify the Dealer in writing promptly upon the occurrence of (i) any Disqualification Event relating to any Dealer Manager Covered Person not previously disclosed to the Dealer in accordance
with Section 8.1 above, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Dealer Manager Covered Person. The Dealer Manager will also notify the Dealer in writing promptly upon
receiving notification from (x) the Company of the occurrence of any Disqualification Event relating to any Company Covered Persons and any event that would, with the passage of time, become a Disqualification Event relating to any Company
Covered Persons, or (y) any other Dealer of the occurrence of any Disqualification Event relating to any such Dealer’s Dealer Covered Persons and any event that would, with the passage of time, become a Disqualification Event relating to
any such Dealer’s Dealer Covered Persons. 

  
 A-12 

	IX.	Private Placement Memorandum and Sales Literature 

 Dealer is not authorized or
permitted to give, and will not give, any information or make any representation (written or oral) concerning the Shares except as set forth in the Private Placement Memorandum as amended and supplemented or in the Authorized Sales Materials. The
Dealer Manager will supply Dealer with reasonable quantities of the Private Placement Memorandum, including amendments of and supplements to the Private Placement Memorandum, and any Authorized Sales Materials, for delivery to investors, with each
such initial Private Placement Memorandum and any amended Private Placement Memorandum being numbered. Dealer will deliver a copy of the Private Placement Memorandum, including any amendments and supplements thereto, each identified by number, to
each investor to whom an offer is made prior to or simultaneously with the first solicitation of an offer to sell the Shares to an investor. When a supplement or amendment to the Private Placement Memorandum is prepared and delivered to the Dealer
by the Company or the Dealer Manager after delivery of the Private Placement Memorandum to an investor, the Dealer shall distribute each such supplement or amendment to the Private Placement Memorandum to every person who has previously received a
copy of the Private Placement Memorandum from the Dealer. The Dealer shall keep memoranda in its records indicating to whom each Private Placement Memorandum, supplement or amendment thereto, and supplemental material was delivered, which memoranda
shall further indicate by number to whom each initial Private Placement Memorandum and any amended and restated Private Placement Memorandum was delivered. The Dealer further agrees to make such records available to the Dealer Manager and the
Company upon request and to make them available to representatives of the SEC and FINRA and applicable state securities administrators upon the Dealer’s receipt of a subpoena or other appropriate document request from such agency. Dealer will
not send or give any Authorized Sales Materials to an investor unless the Authorized Sales Materials are accompanied by or preceded by the Private Placement Memorandum as amended and supplemented. 

Except for the Authorized Sales Materials, the Company has not authorized the use of any supplemental literature or sales materials in
connection with the Offering and the Dealer agrees not to use any material unless it has been authorized by the Company and provided to the Dealer by the Dealer Manager. Dealer agrees that it will not show or give to any investor or prospective
investor or reproduce any material or writing that is supplied to it by the Dealer Manager and marked “broker-dealer use only” or otherwise bearing a legend denoting that it is not to be used in connection with the sale of Shares to
members of the public. Dealer agrees that it will not show or give to any investor or prospective investor in a particular jurisdiction any material or writing that is supplied to it by the Dealer Manager if such material bears a legend denoting
that it is not to be used in connection with the sale of Shares to members of the public in such jurisdiction. Dealer agrees that it will not use in connection with the offer or sale of Shares any material or writing that relates to another company
supplied to it by the Company or the Dealer Manager bearing a legend that states that such material may not be used in connection with the offer or sale of any securities of the Company. On becoming a Dealer, and in offering and selling Shares, the
Dealer agrees to comply with all the applicable requirements under the Securities Act, the Exchange Act, applicable rules and regulations promulgated by the SEC, including Regulation D promulgated under the Securities Act, and applicable state
securities laws and regulations. 

  
 A-13 

	X.	License and Association Membership 

 Dealer represents and warrants to the Company and
the Dealer Manager that it is a properly registered or licensed broker-dealer, duly authorized to offer and sell Shares under federal securities laws and regulations and the securities laws and regulations of all states where it offers or sells
Shares and that it is a member of FINRA in good standing. This Agreement shall automatically terminate if the Dealer ceases to be a member of FINRA in good standing or is subject to a FINRA suspension or if the Dealer’s registration or license
under the Exchange Act or any state securities laws or regulations is terminated or suspended; the Dealer agrees to notify the Dealer Manager immediately if any of these events occur. 

 

	XI.	Anti-Money Laundering Compliance Programs 

 Dealer’s acceptance of this Agreement
constitutes a representation to the Company and the Dealer Manager that the Dealer has established and implemented an anti-money laundering and customer identification compliance program (“AML Program”) in accordance with applicable
laws and regulations, including federal and state securities laws, applicable rules of FINRA, and the Bank Secrecy Act, Title 31 U.S.C. Sections 5311-5355, as amended by the USA Patriot Act of 2001, and related regulations (31 C.F.R. Part 103), and
will continue to maintain its AML Program consistent with applicable laws and regulations during the term of this Agreement. 
 In
accordance with these applicable laws and regulations and its AML Program, Dealer agrees to verify the identity of its new customers; to maintain customer records; to check the names of new customers against government watch lists, including the
Office of Foreign Asset Control’s (OFAC) list of Specially Designated Nationals and Blocked Persons. Additionally, Dealer will monitor account activity to identify patterns of unusual size or volume, geographic factors and any other “red
flags” described in the USA Patriot Act as potential signals of money laundering or terrorist financing. Dealer will submit to the Financial Crimes Enforcement Network any required suspicious activity reports about such activity and further
will disclose such activity to applicable federal and state law enforcement when required by law. Upon request by the Dealer Manager at any time, the Dealer hereby agrees to furnish (a) a copy of its AML Program to the Dealer Manager for
review, and (b) a copy of the findings and any remedial actions taken in connection with Dealer’s most recent independent testing of its AML Program. 

  
 A-14 

	XII.	Effectiveness, Termination and Amendment 

 This Agreement shall become effective upon
the execution hereof by the Dealer and the receipt of this executed Agreement by the Dealer Manager. Dealer will immediately suspend or terminate its offer and sale of Shares upon the request of the Company or the Dealer Manager at any time and will
resume its offer and sale of Shares hereunder upon subsequent request of the Company or the Dealer Manager. In addition to termination pursuant to Section X, any party may terminate this Agreement by written notice, which termination shall be
effective 48 hours after such notice is given. Upon the sale of all of the Shares or the termination of the Dealer Manager Agreement, this Agreement shall terminate without obligation on the part of the Dealer or the Dealer Manager, except as set
forth in this Agreement. The indemnification agreements contained in Section 5 of the Dealer Manager Agreement shall survive the termination of this Agreement and the Dealer Manager Agreement, and the respective agreements and obligations of
the Dealer Manager and the Dealer set forth in Sections IV, V, VI, 7.2, 7.5, 7.6, 7.7, IX and XII through XXIII of this Agreement shall remain operative and in full force and effect regardless of the termination of this Agreement. 

This Agreement may be amended at any time by the Dealer Manager by written notice to the Dealer. Any such amendment shall be deemed accepted
by the Dealer upon the Dealer placing an order for the sale of Shares after it has received such notice. 
  

	XIII.	Privacy Laws 

 The Dealer Manager and Dealer (each referred to individually in this
section as a “party”) agree as follows: 
  

	 	13.1	Each party agrees to abide by and comply in all respects with (a) the privacy standards and requirements of the Gramm-Leach-Bliley Act of 1999 (“GLBA”) and applicable regulations promulgated
thereunder, (b) the privacy standards and requirements of any other applicable federal or state law, including the Fair Credit Reporting Act (“FCRA”) and (c) its own internal privacy policies and procedures, each as may be
amended from time to time; 

  

	 	13.2	Dealer shall not disclose nonpublic personal information (as defined under the GLBA) of all customers who have opted out of such disclosures, except to service providers (when necessary and as permitted under the GLBA)
or as otherwise required by applicable law; 

  

	 	13.3	Except as expressly permitted under the FCRA, Dealer shall not disclose any information that would be considered a “consumer report” under the FCRA; and 

 

	 	13.4	 Dealer shall be responsible for determining which customers have opted out of the disclosure of nonpublic personal information by periodically
reviewing and, if necessary, retrieving a list of such customers (the “List”) to identify customers that have exercised their opt-out rights. In the event either party expects to use or disclose nonpublic personal information of any
customer for purposes other than servicing the customer, or as otherwise required by applicable law, that party must first consult the List to determine whether the affected customer has exercised his or her opt-out rights. Each party understands
that it is prohibited from using or 

  
 A-15 

	 	 
disclosing any nonpublic personal information of any customer that is identified on the List as having opted out of such disclosures. 

 

	XIV.	Customer Complaints 

 Each party agrees to promptly provide to the other party copies of
any written or otherwise documented complaints from customers of the Dealer received by such party relating in any way to the Offering (including, but not limited to, the manner in which the Shares are offered by the Dealer). 

 

	XV.	Notice 

 All notices to the Dealer Manager shall be in writing addressed to the Dealer
Manager at the address set forth below. All notices to Dealer shall be in writing addressed to the Dealer at the address specified by the Dealer at the end of this Agreement. Notices addressed to the intended recipient as described above will be
duly given (a) when personally delivered or by commercial messenger, (b) one business day following deposit with a recognized overnight courier service, provided such deposit occurs prior to the deadline imposed by such service for
overnight delivery; or (c) when transmitted, if sent by facsimile copy, provided confirmation of receipt is received by sender and such notice is sent by an additional method provided hereunder. 

To the Dealer Manager: 
 KBS Capital Markets Group
LLC 
 800 Newport Center Drive, Suite 700 

Newport Beach, California 92660 
  

	XVI.	Confidentiality 

 In connection with the Dealer’s due diligence review of the
Offering, the Dealer (or its agent performing due diligence) may request receipt of confidential information regarding the Offering, the Company, the Company’s sponsor or the sponsor’s affiliates. The Company and the Dealer Manager will
reasonably cooperate with such Dealer to accommodate such request; provided, however, any such information provided to Dealer or its agent will be subject to the terms of the confidentiality agreement attached as Appendix A to
this Agreement. The parties hereto acknowledge and agree that the terms of the confidentiality agreement attached as Appendix A hereto are also intended to directly benefit the Company and KBS Capital Advisors LLC (“KBS CA”), its
subsidiaries and/or affiliates (which group includes, but is not limited to, the Dealer Manager, KBS Holdings LLC (“KBS Holdings”), and investment programs sponsored by KBS Holdings and/or its respective subsidiaries and/or affiliates
(whether such programs are sponsored directly or through joint ventures)), and joint venture partners of KBS Holdings and KBS CA and their affiliates, including, without limitation, Legacy Partners Residential Realty LLC, all of which are intended
third-party beneficiaries of the Dealer’s obligations under the confidentiality agreement attached as Appendix A hereto and each of which has the right to enforce its terms at law or at equity, including the right to seek injunctive relief,
against the Dealer. 

  
 A-16 

	XVII.	Confirmation 

 The Dealer Manager hereby acknowledges that the Dealer Manager has
assumed the duty to confirm on behalf of the Dealers all orders for purchases of Shares accepted by the Company. Such confirmations will comply with the rules of the SEC and FINRA and will comply with the applicable laws of such other jurisdictions
to the extent that the Dealer Manager is advised of such laws in writing by the Dealer. 
  

	XVIII.	Entire Agreement 

 This Agreement and the exhibits hereto are the entire agreement of
the parties and supersede all prior agreements, if any, relating to the subject matter hereof between the parties hereto. 
  

	XIX.	Successors and Assigns 

 No party shall assign this Agreement or any right, interest or
benefit under this Agreement without the prior written consent of the other party. This Agreement shall be binding upon the Dealer Manager and the Dealer and their respective successors and permitted assigns. 

 

	XX.	Arbitration, Attorney’s Fees, Jury Trial and Applicable Law 

 In the event of a
dispute concerning any provision of this Agreement (including any provisions of the Dealer Manager Agreement incorporated into this Agreement), either party may require the dispute to be submitted to binding arbitration, conducted on a confidential
basis, under the then current commercial arbitration rules of FINRA or the American Arbitration Association (at the discretion of the party requesting arbitration) in accordance with the terms of this Agreement (including the governing law
provisions of this section) and pursuant to the Federal Arbitration Act (9 U.S.C. §§ 1 – 16). The parties will request that the arbitrator or arbitration panel (“Arbitrator”) issue written findings of fact and conclusions of
law. The Arbitrator shall not be empowered to make any award or render any judgment for punitive damages, and the Arbitrator shall be required to follow applicable law in construing this Agreement, making awards, and rendering judgments. The
decision of the arbitration panel shall be final and binding, and judgment upon any arbitration award may be entered by any court having jurisdiction. All arbitration hearings will be held at the Los Angeles FINRA District Office or at another
mutually agreed upon site. The parties may agree on a single arbitrator, or, if the parties cannot so agree, each party will have the right to choose one arbitrator, and the selected arbitrators will choose a third arbitrator. Each arbitrator must
have experience and education that qualify him or her to competently address the specific issues to be designated for arbitration. Notwithstanding the preceding, no party will be prevented from immediately seeking provisional remedies in courts of
competent jurisdiction, including but not limited to, temporary restraining orders and preliminary injunctions, but such remedies will not be sought as a means to avoid or stay arbitration. Except as provided otherwise in Section 5 of the
Dealer Manager Agreement, in any action or arbitration to enforce the provisions of this Agreement or to secure damages for its breach, the prevailing party shall recover its costs and reasonable attorney’s fees. Each party to this Agreement
hereby waives a trial by jury in any legal action or proceeding relating to this Agreement. This Agreement shall be construed under the laws of the State of 

  
 A-17 

 
California; provided, however, that the governing law for causes of action for violations of federal or state securities law shall be governed by the applicable federal or state securities law.

  

	XXI.	Severability 

 The invalidity or unenforceability of any provision of this Agreement
shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted. 
  

	XXII.	Counterparts 

 This Agreement may be executed in any number of counterparts. Each
counterpart, when executed and delivered, shall be an original contract, but all counterparts, when taken together, shall constitute one and the same agreement. 
  

	XXIII.	No Partnership 

 Nothing in this Agreement shall be construed or interpreted to
constitute the Dealer as an employee, agent or representative of, or in association with or in partnership with, the Dealer Manager, the Company or the other Dealers; instead, this Agreement shall only constitute the Dealer as a dealer authorized by
the Dealer Manager to sell the Shares according to the terms set forth in the Private Placement Memorandum as amended and supplemented and in this Agreement. 

[signature page follows] 

  
 A-18 

											
		 		 		 	THE DEALER MANAGER:
				
	Attest:	 		 		 	KBS CAPITAL MARKETS GROUP LLC
						
	By:	 	  
	 		 	By:    	 	  
	 	
		 	Name	 		 		 	Name	 	
						
		 	  
	 		 		 	  
	 	
		 	Title	 		 		 	Title	 	

 We have read the foregoing Agreement and we hereby accept and agree to the terms and conditions set forth
therein. We hereby represent that the list below of jurisdictions in which we are registered or licensed as a broker or dealer and are fully authorized to sell securities is true and correct, and we agree to advise you of any change in such list
during the term of this Agreement. 
  

									
	1.	 	Identity of Dealer:	  		 	
					
		 	Name:	 	  
	  		 	

									
					
		 	  Type of entity:	 	  
	  		 	
		 		 	                (corporation, partnership or proprietorship)	 	

											
				
		 	 Organized in the State of:	 	  
	 	
		 		 	                                (State)	 		 	

									
				
		 	 Licensed as broker-dealer in the following States:	 	  
	 	

									
				
		 	  
	  		 	
					
		 	Tax I.D. #:	 	  
	  		 	

  
 A-19 

									
	2.	 	  Person to receive notice pursuant to Section XV:	  		 	
					
		 	  Name:	 	  
	  		 	

					
			
	Company:	 	  
	 	

							
				
	Address:	 	  
	  		 	

					
			
	City, State and Zip Code:	 	  
	 	

							
				
	Telephone No.: 	 	 (      )
	  		 	
				
	Telefax No.:	 	 (      )
	  		 	

							
				
	E-mail Address:	 	  
	  		 	

  

					
	AGREED TO AND ACCEPTED BY THE DEALER:
		
	  
	 	
	           (Dealer’s Firm Name)	 	
			
	By:	 	  
	 	
	           Authorized Signature	 	

			
		
	Title:	 	  

  
 A-20 

 APPENDIX A 

Dealer Confidentiality Agreement 

KBS Capital Advisors LLC (“KBS CA”), its subsidiaries and/or affiliates (which group includes, but is not limited to, KBS Capital
Markets Group LLC (“Dealer Manager”), KBS Holdings LLC (“KBS Holdings”) and investment programs sponsored by KBS Holdings and/or its respective subsidiaries and/or affiliates (whether such programs are sponsored directly or
through joint ventures)), and joint venture partners of KBS Holdings and KBS CA and their affiliates including, without limitation, Legacy Partners Residential Realty LLC (“Legacy”) (collectively, “KBS”), may disclose
Confidential Information (as defined below) to Dealer and its Representatives (as defined below), in connection with their due diligence efforts in respect of one or more offerings of securities sponsored by KBS (the “Offerings”). This
Appendix A constitutes part of the Selected Dealer Agreement between Dealer Manager and Dealer (the “Selected Dealer Agreement”) and sets forth the agreements and understandings among the Dealer Manager, Dealer and KBS with
respect to the disclosure of Confidential Information. 

1.      General.   As a condition to receiving such Confidential
Information, Dealer hereby agrees that it and its Representatives will: (i) hold all such Confidential Information in trust and in the strictest confidence, (ii) protect such Confidential Information from disclosure in accordance with a
standard of care that shall be no less than the care such party uses to protect its own confidential information of like importance but in no event with less than reasonable care, (iii) treat all such Confidential Information in accordance with
the provisions of this Appendix A and (iv) take or abstain from taking certain other actions hereinafter set forth. 

Prior to the receipt of any Confidential Information, each Representative shall have been made aware of and have agreed to be
bound by the terms set forth in this Appendix A. Neither the Dealer nor any of its Representatives shall use, copy, disclose, disseminate, or permit any unauthorized person access to, any Confidential Information without KBS’s prior
written consent. The Dealer and its Representatives may, with KBS’s prior written consent, communicate Confidential Information to another broker-dealer that has entered into a separately-negotiated confidentiality agreement with KBS (which
agreement with KBS shall be in substantially the form hereof). Any such Confidential Information disseminated pursuant to the immediately preceding sentence shall remain confidential notwithstanding any such communication to another person. To the
extent Confidential Information is provided by Dealer pursuant to the terms hereof, the Dealer and each Representative shall ensure that any existing confidentiality notices included on or with the Confidential Information are included in any such
disclosures or, if no such notices are included, “Confidential” or some similar notice is stamped on the Confidential Information. 

For purposes of this Appendix A, the term “Representative” shall include an officer, director,
manager, employee, owner, member or partner of Dealer performing a due diligence review of KBS, a consultant, due diligence provider, accountant or attorney of Dealer performing a due diligence review of KBS on behalf of Dealer, and any person or
committee, as the case may be, responsible for determining whether Dealer will participate in the Offerings, provided that in each case, such person has a need to know such information; provided further that, in no

  
 A-21 

 
event, may such information be shared with any person involved in retail selling efforts related to any Offerings. 

2.      Confidential Information.  For purposes hereof, “Confidential
Information” means all information concerning the business, financial condition, operations, prospects, assets and liabilities of KBS (including materials and matters provided to and discussed by the board of directors of KBS and the
committees of the board) that KBS believes is either confidential, proprietary or otherwise not generally available to the public, whether prepared by KBS, its advisors or otherwise (including information received by KBS from third parties under
confidential conditions) and which is furnished to Dealer or any of its Representatives in writing, orally or by any other means in connection with the Offerings, and includes all analyses, notes, compilations, summaries, studies or other documents,
records or data prepared by Dealer or its Representatives which contain, reflect or are generated from, such information. However, Confidential Information shall not include information that: (A) is generally available to the public other than
as a result of a disclosure by the Dealer or its Representatives in breach of this Appendix A; (B) is known to the Dealer or its Representatives prior to the date of the Selected Dealer Agreement; provided, that, such information is not
known by the Dealer or its Representatives to be subject to another confidentiality agreement with, or other obligation or undertaking of secrecy to KBS; (C) is independently disclosed to the Dealer or its Representatives by a third-party which
the Dealer or its Representative reasonably believes has a bona fide right to do so without violating any obligation of confidentiality or (D) is developed by the Dealer or any of its Representatives completely independent of any information
disclosed to the Dealer or any of its Representatives in connection with their due diligence review. 

3.      Legally Required Disclosures.    In the event that the Dealer
or any of its Representatives is requested or required (by deposition, interrogatories, requests for information or documents in legal proceedings, subpoena, civil investigative demand or other similar process) by any court or governmental agency or
authority or other supervisory body, or by application of law, regulation or legal or regulatory process to disclose any of the Confidential Information, the Dealer shall: (A) provide KBS with prompt written notice of any such request or
requirement so that KBS may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Appendix A, (B) if the Dealer or any of its Representatives is required based upon the advice of their
respective legal counsel, to disclose Confidential Information, the Dealer or such Representative may, without liability hereunder, disclose only that portion of the Confidential Information which such legal counsel advises is legally required to be
disclosed; provided, that, the Dealer or such Representative exercises reasonable efforts to otherwise preserve the confidentiality of the Confidential Information and (C) upon reasonable notice, the Dealer and its Representatives will
cooperate with KBS in obtaining a protective order or other appropriate remedy reasonably limiting disclosure to appropriate parties relating to the applicable proceeding; provided, that, the foregoing (i) shall not require the Dealer or its
Representatives to delay production of any Confidential Information and (ii) shall apply only to the extent that KBS bears all costs and expenses of such cooperation, including, but not limited to, payment to the Dealer or its Representative,
as applicable, for time expended by its staff relating to any such efforts at its then current billing rates and reimbursement of all reasonable attorney’s fees and costs of legal counsel associated therewith. Neither the Dealer nor any of its
Representatives is required to take any action pursuant to clause 

  
 A-22 

 
(C) of the immediately preceding sentence without reasonable assurances from KBS that such payment and reimbursement will be provided. 

4.      Ownership of Confidential Information.  Confidential Information,
including any copies, printouts and summaries thereof, shall remain the property of KBS and all applicable rights in patents, copyrights, trade secrets and similar intellectual property rights embodied in the Confidential Information shall remain in
KBS. 
 5.      Return of Confidential Information.   Except for due
diligence files and copies maintained to comply with applicable rules and regulations upon advice of counsel, Dealer agrees promptly upon KBS’s written request to return all written material, including copies or printouts and summaries thereof,
and destroy all material held by Dealer or any of its Representatives in electronic form (including material on disks or tapes) containing Confidential Information, submitted to Dealer or its Representatives or prepared by Dealer or its
Representatives based upon such Confidential Information. Notwithstanding the return or destruction of Confidential Information, Dealer and its Representatives will continue to hold in confidence all Confidential Information and be bound by their
respective obligations under the terms of this Appendix A. 

6.      Remedies.   Each party agrees that the obligations hereunder are
necessary and reasonable in order to protect KBS and its business, and expressly agrees that monetary damages would not be a sufficient remedy for any violation of the terms of this Appendix A and, accordingly, KBS shall be entitled to seek
equitable relief, including, but not limited to, specific performance and injunctive relief as remedies for any violation, including, without limitation, the actual or threatened disclosure of Confidential Information without the prior written
consent of KBS. Such remedies shall not be deemed to be exclusive remedies for a violation of the terms of this Appendix A, but shall be in addition to all other remedies available to KBS at law or equity. The Dealer agrees that neither it
nor any of its Representatives will raise the defense of an adequate remedy at law in any action seeking equitable relief. The Dealer shall indemnify and hold harmless KBS from and against all liabilities, obligations, claims, damages, penalties,
causes of action costs and expenses (including reasonable attorneys’ fees and expenses actually incurred) imposed upon or incurred by or asserted against KBS by reason of a violation of the terms of this Appendix A by the Dealer or any
of its Representatives. 
 7.      Waiver.  No delay or failure in exercising
any rights hereunder shall be construed to be a waiver of such rights, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right hereunder. 

8.      Governing Law.   THIS APPENDIX A SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES. EACH OF THE PARTIES HEREBY AGREE AND SUBMIT TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED WITHIN THE STATE OF
CALIFORNIA FOR THE RESOLUTION OF ANY DISPUTE THAT MAY ARISE UNDER THIS APPENDIX A, AND THAT THE STATE AND FEDERAL COURTS LOCATED WITHIN THE STATE OF CALIFORNIA HAVE EXCLUSIVE JURISDICTION FOR ANY SUCH DISPUTES. 

  
 A-23 

 9.      Severability.  If for any
reason any provision of this Appendix A shall be declared void or invalid, such declaration shall not affect the validity of the remainder of this Appendix A which shall remain in full force and effect as if executed with the void or
invalid provision eliminated. 
 10.      Binding Agreement.  This
Appendix A shall be binding upon, and shall inure to the benefit of KBS (including each of the entities included in the definition of “KBS” in the preamble to this Agreement including, without limitation, Legacy), the Dealer and
their respective successors in interest. 

11.      Non-Assignment.   This Appendix A, and the rights and
obligations hereby created, may not be assigned by the Dealer without the express written consent of KBS. 

12.      Entire Agreement.    This Appendix A constitutes the
entire agreement and supersedes and replaces any prior or existing agreement relating to treatment of Confidential Information relating to KBS and the Offerings. 

13.      Captions.  The captions contained in this Appendix A are for convenience only,
form no part of this Appendix A and shall not in any manner amplify, limit, modify or otherwise affect the interpretation of this Appendix A. 

  
 A-24Exhibit

Exhibit 10.8
INDEMNIFICATION AGREEMENT
This Indemnification Agreement is entered into this ___ day of _____, 20__ (“Agreement”), by and between Synergy Resources Corporation, a Colorado corporation (“Company”), and _________________ (“Indemnitee”).
WHEREAS, highly competent persons have become more reluctant to serve corporations as directors, executive officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, the corporation;
WHEREAS, the board of directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons’ serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the corporation or business enterprise itself;
WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;
WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and
WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified.
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
Section 1.Services by Indemnitee.  Indemnitee agrees to serve as a director, officer, employee or agent of the Company and, as mutually agreed by Indemnitee and the Company, as a 

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director, officer, employee, agent or fiduciary of other corporations, partnerships, joint ventures, trusts or other enterprises (including, without limitation, employee benefit plans).  Indemnitee may at any time and for any reason resign from any such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in that position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries), if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries), other applicable formal severance policies duly adopted by the Board or, with respect to service as a director of the Company, by the Company’s Articles of Incorporation (as the same may be amended from time to time), Bylaws (as the same may be amended from time to time) and the Colorado Business Corporations Act.  Notwithstanding, the foregoing, this Agreement shall continue in force after Indemnitee has ceased to serve as a director, officer, employee or agent of the Company and no longer serves at the request of the Company as a director, officer, employee or agent of the Company or any subsidiary of the Company.
Section 2.    Indemnification--General.  The Company shall indemnify, and advance Expenses (as hereinafter defined) to, Indemnitee (a) as provided in this Agreement and (b) to the fullest extent permitted by applicable law in effect on the date hereof and as amended from time to time.  The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.
Section 3.    Proceedings Other than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification provided in Section 2 and this Section 3 if, by reason of his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or a participant in any threatened, pending, or completed Proceeding (as hereinafter defined), other than a Proceeding by or in the right of the Company.  Pursuant to this Section 3, the Company shall indemnify Indemnitee against, and shall hold Indemnitee harmless from and in respect of, all Expenses, judgments, penalties, fines (including excise taxes) and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties or amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful.
Section 4.    Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification provided in Section 2 and this Section 4 if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or a participant in any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, the Company shall indemnify Indemnitee against, and shall hold Indemnitee harmless from and in respect of, all Expenses actually and reasonably incurred by him or on his behalf in connection with, and any amounts paid in settlement of, such Proceeding if he 

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acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.  Notwithstanding the foregoing, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company if applicable law prohibits such indemnification; provided, however, if applicable law so permits, indemnification against such Expenses shall nevertheless be made by the Company in such event if and only to the extent that the court in which such Proceeding shall have been brought or is pending, shall determine.
Section 5.    Indemnification for Expenses of a Party Who Is Wholly or Partly Successful.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to (or a participant in) and is successful, on the merits or otherwise, in defense of any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.  If Indemnitee is not wholly successful in defense of such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
Section 6.    Indemnification for Expenses as a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
Section 7.    Advancement of Expenses.  The Company shall advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding within fifteen (15) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it ultimately shall be determined, in accordance with this Agreement, that Indemnitee is not entitled to be indemnified against such Expenses.
Section 8.    Procedure for Determination of Entitlement to Indemnification.
(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification.  The President of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
(b)    On written request by Indemnitee for indemnification pursuant to Section 8(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control (as hereinafter defined) shall have occurred 

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within two (2) years prior to the date of such written request, by Independent Counsel (as hereinafter defined) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred within two (2) years prior to the date of such written request, (A) by a majority vote of the Disinterested Directors (as hereinafter defined), even though less than a quorum of the Board, or (B) if there are no such Disinterested Directors, or if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall cooperate with the Person (as hereinafter defined) making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such Person on reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the Person making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
(c)    In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 8(b), the Independent Counsel shall be selected as provided in this Section 8(c).  If a Change of Control shall not have occurred within two (2) years prior to the date of Indemnitee’s written request for indemnification pursuant to Section 8(a), the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected.  If a Change of Control shall have occurred within two (2) years prior to the date of Indemnitee’s written request for indemnification pursuant to Section 8(a), the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected in either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection.  Such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 17, and the objection shall set forth with particularity the factual basis of such assertion.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 8(a), no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the petitioned court or by such other person as the petitioned court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 8(b).  The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such 

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Independent Counsel in connection with acting pursuant to Section 8(b), and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 8(c), regardless of the manner in which such Independent Counsel was selected and appointed.  If (i) Independent Counsel does not make any determination respecting Indemnitee’s entitlement to indemnification hereunder within ninety (90) days after receipt by the Company of a written request therefor and (ii) any judicial proceeding or arbitration pursuant to Section 10(a)(iii) hereof is then commenced, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
Section 9.    Presumptions and Effect of Certain Proceedings.
(a)    In making a determination with respect to entitlement to indemnification hereunder, the Person making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 8(a), and the Company shall have the burden of proof to overcome that presumption in connection with the making by any Person of any determination contrary to that presumption.
(b)    The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or on a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
(c)    Any action taken by Indemnitee in connection with any employee benefit plan shall, if taken in good faith by Indemnitee and in a manner Indemnitee reasonably believed to be in the interest of the participants in or beneficiaries of that plan, be deemed to have been taken in a manner “not opposed to the best interests of the Company” for all purposes of this Agreement.
Section 10.    Remedies of Indemnitee.
(a)    In the event that (i) a determination is made pursuant to Section 8 that Indemnitee is not entitled to indemnification hereunder, (ii) advancement of Expenses is not timely made pursuant to Section 7, (iii) Independent Counsel is to determine Indemnitee’s entitlement to indemnification hereunder, but does not make that determination within ninety (90) days after receipt by the Company of the request for that indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 within ten (10) days after receipt by the Company of a written request therefor or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication from a court of competent jurisdiction of his entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such Proceeding seeking an adjudication or an award in arbitration within one hundred eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 10(a); provided, however, 

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that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under Section 5.
(b)    In the event that a determination shall have been made pursuant to Section 8(b) that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 10 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 10, the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.
(c)    If a determination shall have been made pursuant to Section 8(b) that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 10, absent (i) a misstatement by Indemnitee of a material fact, or an omission by Indemnitee of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law.
(d)    In the event that Indemnitee, pursuant to this Section 10, seeks a judicial adjudication of or an award in arbitration to enforce his rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all Expenses actually and reasonably incurred by him in such judicial adjudication or arbitration, but only if he prevails therein.  If it shall be determined in said judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.
Section 11.    Non-Exclusivity; Survival of Rights; Insurance; Subrogation.
(a)    The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, its Articles of Incorporation (as the same may be amended from time to time), its Bylaws (as the same may be amended from to time), any agreement, a vote of stockholders or a resolution of directors, or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Colorado law (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.
(b)    To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies 

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in accordance with its or their terms to the maximum extent of the coverage available for any such director, Officer, employee or agent under such policy or policies.
(c)    In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.
(d)    The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
(e)    The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee with respect to Indemnitee’s service at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.
Section 12.    Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which Indemnitee served on behalf of the Company; or (b) the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of expenses hereunder and of any Proceeding commenced by Indemnitee pursuant to Section 10 relating thereto.  This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse (if Indemnitee resides in a community property state), heirs, executors and administrators, and this Agreement does not, and shall not be construed to confer any rights on any Person that is not a party to this Agreement, other than Indemnitee’s spouse, and his heirs, executors and assigns.
Section 13.    Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable which is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including. without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable which is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.
Section 14.    Exception to Right of Indemnification or Advancement of Expenses.  Notwithstanding any other provision hereof, Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding brought by 

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Indemnitee or any claim therein prior to a Change in Control, unless the bringing of such Proceeding or making of such claim shall have been approved by the Board.
Section 15.    Identical Counterparts.  This Agreement may be executed in one or more counterparts by means of original or facsimile signatures, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.
Section 16.    Headings.  The headings of the Sections hereof are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
Section 17.    Definitions.  For purposes of this Agreement:
(a)    “Acquiring Person” means any Person who or which, together with all Affiliates and Associates of such Person, is or are the Beneficial Owner of twenty percent (20%) or more of the shares of Common Stock then outstanding, but does not include any Exempt Person; provided, however, that a Person shall not be or become an Acquiring Person if such Person, together with its Affiliates and Associates, shall become the Beneficial Owner of twenty percent (20%) or more of the shares of Common Stock then outstanding solely as a result of a reduction in the number of shares of Common Stock outstanding due to the repurchase of Common Stock by the Company, unless and until such time as such Person or any Affiliate or Associate of such Person shall purchase or otherwise become the Beneficial Owner of additional shares of Common Stock constituting one percent (1%) or more of the then outstanding shares of Common Stock or any other Person (or Persons) who is (or collectively are) the Beneficial Owner of shares of Common Stock constituting one percent (1%) or more of the then outstanding shares of Common Stock shall become an Affiliate or Associate of such Person, unless, in either such case, such Person, together with all Affiliates and Associates of such Person, is not then the Beneficial Owner of twenty-five percent (25%) or more of the shares of Common Stock then outstanding.
(b)    “Affiliate” has the meaning ascribed to that term in Rule 12b-2 of the Exchange Act.
(c)    “Associate” means, with reference to any Person, (i) any corporation, firm, partnership, association, unincorporated organization or other entity (other than the Company or a subsidiary of the Company) of which that Person is an officer or general partner (or officer or general partner of a general partner) or is, directly or indirectly, the Beneficial Owner of 10% or more of any class of its equity securities, (ii) any trust or other estate in which that Person has a substantial beneficial interest or for or of which that Person serves as trustee or in a similar fiduciary capacity and (iii) any relative or spouse of that Person, or any relative of that spouse, who has the same home as that Person.
(d)    A specified Person is deemed the “Beneficial Owner” of, and is deemed to “beneficially own,” any securities:

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(i)    of which that Person or any of that Person’s Affiliates or Associates, directly or indirectly, is the “beneficial owner” (as determined pursuant to Exchange Act Rule 13d-3) or otherwise has the right to vote or dispose of, including pursuant to any agreement, arrangement or understanding (whether or not in writing); provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” any security under this subparagraph as a result of an agreement, arrangement or understanding to vote that security if that agreement, arrangement or understanding: (A) arises solely from a revocable proxy or consent given in response to a public (that is, not including a solicitation exempted by Exchange Act Rule 14a-2(b)(2)) proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the Exchange Act; and (B) is not then reportable by such Person on Exchange Act Schedule 13D (or any comparable or successor report);
(ii)    which that Person or any of that Person’s Affiliates or Associates, directly or indirectly, has the right or obligation to acquire (whether that right or obligation is exercisable or effective immediately or only after the passage of time or the occurrence of an event) pursuant to any agreement, arrangement or understanding (whether or not in writing) or on the exercise of conversion rights, exchange rights, other rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” securities tendered pursuant to a tender or exchange offer made by that Person or any of that Person’s Affiliates or Associates until those tendered securities are accepted for purchase or exchange; or
(iii)    which are beneficially owned, directly or indirectly, by (A) any other Person (or any Affiliate or Associate thereof) with which the specified Person or any of the specified Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy or consent as described in the proviso to subparagraph (i) of this definition) or disposing of any voting securities of the Company or (B) any group (as that term is used in Rule 13d-5(b) of the Exchange Act) of which that specified Person is a member;
PROVIDED, HOWEVER, that nothing in this definition shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of, or to “beneficially own,” any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of that acquisition.  For purposes of this Agreement, “voting” a security shall include voting, granting a proxy, acting by consent, making a request or demand relating to corporate action (including, without limitation, calling a stockholder meeting) or otherwise giving an authorization (within the meaning of Section 14(a) of the Exchange Act) in respect of such security.

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(e)    “Change of Control” means the occurrence of any of the following events that occurs after the effective date of this Agreement: (i) any Person becomes an Acquiring Person; (ii) at any time the then Continuing Directors cease to constitute a majority of the members of the Board; (iii) a merger of the Company with or into, or a sale by the Company of its properties and assets substantially as an entirety to, another Person occurs and, immediately after that occurrence, any Person, other than an Exempt Person, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of twenty percent (20%) or more of the total voting power of the then outstanding Voting Shares of the Person surviving that transaction (in the case or a merger or consolidation) or the Person acquiring those properties and assets substantially as an entirety.
(f)    “Common Stock” means the common stock, par value $.001 per share, of the Company.
(g)    “Continuing Director” means at any time any individual who then (i) is a member of the Board and was a member of the Board as of the effective date of this Agreement or whose nomination for his first election, or that first election, to the Board following that date was recommended or approved by a majority of the then Continuing Directors (acting separately or as a part of any action taken by the Board or any committee thereof) and (ii) is not an Acquiring Person, an Affiliate or Associate of an Acquiring Person or a nominee or representative of an Acquiring Person or of any such Affiliate or Associate.
(h)    “Corporate Status” describes the status of a Person who is or was a director, officer, employee or agent of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company.  For purposes of this Agreement, “serving at the request of the Company” includes any service by Indemnitee which imposes duties on, or involves services by, Indemnitee with respect to any employee benefit plan or its participants or beneficiaries.
(i)    “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee hereunder.
(j)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(k)    “Exempt Person” means (i), (A) the Company, any subsidiary of the Company, any employee benefit plan of the Company or of any subsidiary of the Company and (B) any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan or for the purpose of funding any such plan or funding other employee benefits for employees of the Company or any subsidiary of the Company and (ii) Indemnitee, any Affiliate or Associate of Indemnitee or any group (as that term is used in Rule 13d-5(b) of the Exchange Act) of which Indemnitee or any Affiliate or Associate of Indemnitee is a member.

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(l)    “Expenses” include all attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding and all interest or finance charges attributable to any thereof.  Should any payments by the Company under this Agreement be determined to be subject to any federal, state or local income or excise tax, “Expenses” also shall include such amounts as are necessary to place Indemnitee in the same after-tax position (after giving effect to all applicable taxes) he would have been in had no such tax been determined to apply to such payments.
(m)    “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company, its Affiliates or Indemnitee in any matter material to either such party; or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
(n)    “Person” means any natural person, sole proprietorship, corporation, partnership of any kind having a separate legal status, limited liability company, business trust, unincorporated organization or association, mutual company, joint stock company, joint venture, estate, trust, union or employee organization or governmental authority.
(o)    “Proceeding” includes any action, suit, alternate dispute resolution mechanism, hearing or any other proceeding, whether civil, criminal, administrative, arbitrative, investigative or mediative, any appeal in any such action, suit, alternate dispute resolution mechanism, hearing or other proceeding and any inquiry or investigation that could lead to any such action, suit, alternate dispute resolution mechanism, hearing or other proceeding, except one (i) initiated by an Indemnitee pursuant to Section 10 to enforce his rights hereunder or (ii) pending on or before the date of this Agreement.
(p)    “Voting Shares” means: (i) in the case of any corporation, stock of that corporation of the class or classes having general voting power under ordinary circumstances to elect a majority of that corporation’s board of directors; and (ii) in the case of any other entity, equity interests of the class or classes having general voting power under ordinary circumstances equivalent to the Voting Shares of a corporation.
Section 18.    Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

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Section 19.    Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder; provided, however, failure to give such notice shall not deprive Indemnitee of his rights to indemnification and advancement of Expenses under this Agreement unless the Company is actually and materially prejudiced thereby.
Section 20.    Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or (b) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is so mailed:
(a)    If to Indemnitee, to:        

        
(b)    If to the Company, to:    Synergy Resources Corporation
1625 Broadway, Suite 300
Denver, CO 80202

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case way be.
Section 21.    Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all the circumstances of such Proceeding in order to reflect: (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).
Section 22.    Governing Law; Submission to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Colorado, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 10(a), the Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in (i) the state courts of the State of Colorado, and (ii) the United States District Court for the State of Colorado (and appropriate appellate courts therefrom), and not in any other state or federal court in the United States of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of (i) the state courts of the State of Colorado, and (ii) the United States District Court for the State of Colorado (and appropriate appellate courts therefrom) for purposes of any action or proceeding arising out 

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of or in connection with this Agreement, (c) waive any objection to the laying of venue of any such action or proceeding in such courts, and (d) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in such courts has been brought in an improper or otherwise inconvenient forum.
Section 23.    Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  When used in this Agreement, the words “herein,” “hereof” and words of similar import shall refer to this Agreement as a whole and not to any provision of this Agreement, and the word “Section” refers to a Section of this Agreement, unless otherwise specified.

[Signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.
SYNERGY RESOURCES CORPORATION

By:_____________________________________________

Name:     
Title:         

INDEMNITEE

By:_____________________________________________            

Name:      

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