Document:

Escrow Agreement

 Exhibit 4.5 
 ESCROW AGREEMENT 
 First Republic Trust Company 
 1888 Century Park East 
 Los Angeles, CA 90067-1702
  

			
	Re:	 	KBS REAL ESTATE INVESTMENT TRUST II, INC.

 Ladies and Gentlemen: 
 KBS Real Estate Investment Trust II, Inc., a Maryland corporation (the “Company”), will issue in a public offering (the “Offering”) up to 280,000,000 shares of its common stock (the
“Shares”) pursuant to a Registration Statement on Form S-11 (the “Registration Statement”) filed by the Company with the Securities and Exchange Commission (the “SEC”). KBS
Capital Markets Group LLC, a California limited liability company (the “Dealer Manager”), will act as dealer manager for the Offering. The Company is entering into this agreement (the “Agreement”) with
First Republic Trust Company (the “Escrow Agent”) to set forth the terms on which you, as Escrow Agent, will hold and disburse the proceeds from subscriptions for the purchase of Shares in the Offering. 
 In reliance upon your representation and warranty that you are, and at all times during the term of this Agreement will be, deemed a “bank” as that term is
defined in Section 3(a)(6) of the Securities Exchange Act of 1934, as amended, the Company hereby appoints you as Escrow Agent for purposes of holding the proceeds from subscriptions for the Shares, on the terms and conditions hereinafter set
forth: 
 1.          The following defined terms used in this Agreement shall have the meanings specified
below: 
 “Collected Funds” shall mean all funds received by the Escrow Agent that have cleared normal banking channels and are in
the form of cash. 
 “Escrow Account” an interest-bearing deposit account entitled “ESCROW ACCOUNT FOR THE BENEFIT OF
SUBSCRIBERS FOR COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST II, INC.” 
 “Escrow Income” shall mean any interest income
earned on funds deposited in the Escrow Account. 
 “Threshold Date” shall mean the date that is exactly one year after the SEC
grants an effective order relating to the Registration Statement under Section 8(a) of the Securities Act of 1933, as amended. The Company shall notify you of the Threshold Date as soon as possible after it is determined. 
 “Form W-9” shall mean an executed IRS Form W-9, which may be a substitute executed Form W-9 as contained in the Company’s subscription
agreement provided such substitute form is in 

 
conformity with all applicable IRS regulations. 
 “KBS Affiliate” shall mean the Company, the Dealer Manager, KBS Capital Advisors, LLC and, with respect to the aforementioned entities, (i) any person or entity directly or indirectly controlling, controlled by,
or under common control with such entity; (ii) any person directly or indirectly owning, controlling, or holding with the power to vote 10% or more of the outstanding voting securities of such entity; (iii) any entity for which such entity
acts as general partner; (iv) any entity 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such entity; and (v) any executive officer, director, trustee, or general
partner of such entity. 
 “Minimum Required Capital” shall mean aggregate gross proceeds of $2,500,000 attributable to Qualifying
Subscriptions received from Non-PA Subscribers. 
 “Non-PA Subscriber” shall mean any Subscriber other than a PA Subscriber.

 “Offering End Date” shall mean the close of business on the date that is exactly two years after the SEC grants an effective order
relating to the Registration Statement under Section 8(a) of the Securities Act of 1933, as amended; provided, however, that the Company retains the authority to change the Offering End Date and agrees to promptly notify you in writing of any
such change. 
 “PA Escrow Account” an interest-bearing sub-account to the Escrow Account, entitled “ESCROW ACCOUNT FOR THE
BENEFIT OF PENNSYLVANIA SUBSCRIBERS FOR COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST II, INC.” 
 “PA Escrow Income” shall
mean any interest income earned on funds deposited in the PA Escrow Account. 
 “PA Required Capital” shall mean aggregate gross
proceeds of $66,700,000 attributable to Qualifying Subscriptions received from all Subscribers. 
 “PA Subscribers” shall mean a
Subscriber who (i) resides in Pennsylvania or (ii) is physically present in Pennsylvania when (A) such Subscriber receives an offer to purchase Shares that is directed into Pennsylvania, or (B) such Subscriber completes a
subscription to purchase Shares in the Offering. 
 “Short-Term Investments” shall mean obligations of, or obligations guaranteed by,
the United States government, bank money market accounts or certificates of deposit of national or state banks that have deposits insured by the Federal Deposit Insurance Corporation (including certificates of deposit of any bank acting as a
depository or custodian for any such funds, including, without limitation, such certificates or instruments of American International Bank) that mature on or before the termination of the Offering, unless such instrument cannot be readily sold or
otherwise disposed of for cash by the termination of the Offering without any dissipation of the Offering proceeds invested. 
  

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 The following securities are not permissible Short-Term Investments: 
  

	(i)	money market mutual funds; 

  

	(ii)	corporate equity or debt securities; 

  

	(iii)	repurchase agreements; 

  

	(iv)	bankers’ acceptances; 

  

	(v)	commercial paper; and 

  

	(vi)	municipal securities. 

 “Subscriber” shall mean
any person, other than a KBS Affiliate, who subscribes to purchase Shares in the Offering. 
 “Qualifying Subscription” shall mean a
subscription received by the Company from a Subscriber, which the Company intends to accept upon satisfaction of the escrow conditions contained in this Agreement. 
 1.          (a) Until the Company has received Qualifying Subscriptions representing the Minimum Required Capital, and such funds are disbursed in accordance with Section 3 hereof,
Non-PA Subscribers will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form of checks payable to the order of, “FIRST REPUBLIC TRUST COMPANY, AS ESCROW AGENT FOR KBS REAL ESTATE INVESTMENT TRUST
II, INC.” Any checks from that are made payable to a party other than the Escrow Agent and that are received prior to the time, if any, that the collected funds in the Escrow Account are disbursed in accordance with Section 3 hereof, shall
be returned to the Dealer Manager or soliciting dealer, as applicable, who submitted the check. 
 (b) Until the Company has received
Qualifying Subscriptions representing the PA Required Capital, and such funds are disbursed in accordance with Section 3, PA Subscribers will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form
of checks payable to the order of, “FIRST REPUBLIC TRUST COMPANY, AS ESCROW AGENT FOR KBS REAL ESTATE INVESTMENT TRUST II, INC.” Any checks from PA Subscribers that are made payable to a party other than the Escrow Agent and that are
received prior to the time, if any, that the collected funds in the PA Escrow Account are disbursed in accordance with Section 3 hereof, shall be returned to the Dealer Manager or soliciting dealer, as applicable, who submitted the check.

 (c) By the end of the second business day after receipt of any check from the Offering, the Dealer Manager will transmit, or cause to be
transmitted, to you: (i) an electronic file in a compatible format containing the Subscriber’s name, address, number of shares purchased and purchase price remitted, (i) a statement identifying the Subscriber as a PA Subscriber or a
Non-PA Subscriber, (iii) a statement confirming the receipt from such Subscriber of a Form W-9, and (iii) the check from such Subscriber, 
 2.          (a) Within one business day following receipt of the materials specified in Section 1(c), including a check conforming to the requirements of 1(a) or 1(b), as applicable,
you shall deposit such check into the Escrow Account (if such check is from a Non-PA Subscriber) or the PA Escrow Account (if such check is from a PA Subscriber). 
  

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 (b) You agree to promptly process for collection the checks upon deposit into the Escrow Account or the
PA Escrow Account. You will hold, and separately account for, the deposited funds in the Escrow Account or the PA Escrow Account until such funds are disbursed in accordance with Section 3 hereof. If any of the checks are returned to you for
nonpayment prior to receipt by you of the Minimum Required Capital or, in connection with subscriptions from PA Subscribers, the PA Required Capital, you shall promptly notify the Dealer Manager and the Company in writing of such nonpayment, and you
are authorized to debit the Escrow Account or the PA Escrow Account, as applicable, in an amount equal to such return payment (including any interest earned thereon), and to bill the Company for the returned check fee set forth on Exhibit B.

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

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       (ii) If, at the close of business on the date that is 6 business days
prior to the Threshold Date, you are not in receipt of evidence of Qualifying Subscriptions and checks representing aggregate gross proceeds that equal or exceed the Minimum Required Capital, you shall promptly so notify the Company and the Dealer
Manager. Within one business day thereafter, the Dealer Manager shall transmit to you instructions for allocating among the Subscribers any interest income earned on the subscription proceeds, which amounts shall be calculated by the Dealer Manager
in accordance with Section 8. 
       (iii) If, at the close of business on the Threshold Date, you are
not in receipt of evidence of Qualifying Subscriptions received on or before such date and checks dated not later than that date representing aggregate gross proceeds that equal or exceed the Minimum Required Capital, you shall promptly so notify
the Company and the Dealer Manager. Promptly following the Threshold Date, and in any event no later than the next business day after the Threshold Date, you shall return directly to each Subscriber by your check the collected funds deposited in the
Escrow Account and the PA Escrow Account on behalf of such Subscriber (unless previously disbursed in accordance with Section 3(c) or 3(d) below), or shall return the checks delivered to you if such checks have not been processed for collection
prior to such time, together with interest in the amounts instructed by the Dealer Manager pursuant to Section 3(b)(ii) for each subscriber at the address given to you by the Dealer Manager. In the event a Form W-9 pertaining to any Subscriber
has not been received by you from the Dealer Manager, you shall remit an amount to such Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income on subscription proceeds attributable to
such Subscriber. However, you shall not be required to remit such payments until you have collected funds represented by such payments. 
 (c)(i) Notwithstanding Sections 3(a) and 3(b) above, if you are not in receipt of evidence of Qualifying Subscriptions received on or before the close of business on such date that is 120 days after the date the Company first receives a
Qualifying Subscription from a PA Subscriber (such period, the “Initial Escrow Period”), and checks dated not later than that date, representing aggregate gross proceeds that equal or exceed the PA Required Capital, you shall
promptly so notify the Company and the Dealer Manager. Within one business day thereafter, the Dealer Manager shall transmit to you (i) instructions for allocating among the PA Subscribers interest income earned on the subscription proceeds in
the PA Escrow Account, which amounts shall be calculated by the Dealer Manager in accordance with Section 8, and (ii) a Form W-9 for each PA Subscriber. The Company shall send to each PA Subscriber by certified mail within 10 calendar days
after the end of the Initial Escrow Period a notification in the form of Exhibit A. If, pursuant to such notification, a PA Subscriber requests the return of his or her subscription funds within 10 calendar days after receipt of the
notification (the “Request Period”), you shall promptly refund directly to each PA Subscriber the funds deposited in the PA Escrow Account on behalf of such PA Subscriber or shall return the checks delivered, but not yet
processed for collection prior to such time, to the address provided by the Dealer Manager or the Company, together with interest income in the amounts instructed by the Dealer Manager. Notwithstanding the above, if you have not received a Form W-9
for such PA Subscriber from the Dealer Manager, you shall thereupon remit an amount to such PA Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income earned on subscription proceeds
attributable to such PA Subscriber. However, you shall not be required to remit such payments until you have collected funds represented by such payments. 
  

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       (ii) The subscription funds of PA Subscribers who do not request the
return of their subscription funds within the Request Period shall remain in the PA Escrow Account for successive 120-day escrow periods (each a “Successive Escrow Period”), each commencing automatically upon the termination
of the prior Successive Escrow Period, and the Company and you shall follow the notification and payment procedure set forth in Section 3(c)(i) above with respect to the Initial Escrow Period for each Successive Escrow Period until the
occurrence of the earliest of (A) the Offering End Date, (B) the receipt by the Company of Qualifying Subscriptions representing aggregate gross proceeds that equal or exceed the PA Required Capital and the disbursement of the PA Escrow
Account on the terms specified herein, or (C) all collected funds held in the PA Escrow Account having been returned to the PA Subscribers in accordance with the provisions hereof. 
 (d) If the Company elects to reject any subscription for which you have already collected funds, you shall, upon the written request of the Company,
promptly issue a refund check to the rejected Subscriber. If the Company rejects any subscription for which you have not yet collected funds but have submitted the Subscriber’s check for collection, you shall promptly issue a check in the
amount of the Subscriber’s check to the rejected Subscriber after you have collected such funds. If you have not yet submitted a rejected Subscriber’s check for collection, you shall promptly return the Subscriber’s check directly to
the Subscriber. Such rejected subscriptions shall not be considered Qualifying Subscriptions for the purpose of determining whether the Minimum Required Capital or the PA Required Capital has been raised. 
 (e) If, at the close of business on the Offering End Date, any funds in the Escrow Account or the PA Escrow Account have not otherwise been disbursed in
accordance with this Section 3, you shall promptly refund directly to each Subscriber the funds deposited in the Escrow Account or PA Escrow Account, as applicable, on behalf of such Subscriber or shall return the checks delivered, but not yet
processed for collection prior to such time, to the address provided by the Dealer Manager or the Company, together with interest income in the amounts instructed by the Dealer Manager. Notwithstanding the above, if you have not received a Form W-9
for such Subscriber from the Dealer Manager, you shall thereupon remit an amount to such Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any interest income earned on subscription proceeds
attributable to such Subscriber. However, you shall not be required to remit such payments until you have collected funds represented by such payments. 
 4.           You will provide electronic statements of the account with respect to the Escrow Account and the PA Escrow Account in accordance with your practice to the parties listed in
Section 13. Notice of the statements will be sent to each party at the e-mail address shown for that party. Upon written request, a party may receive paper statements in lieu of electronic statements. You will offer the parties the option of
viewing statements (in PDF Format), account activity, investment holdings and other reports via the internet using Trust OnlineTM. Account information via Trust OnlineTM is for review purposes only, but can be downloaded and/or printed. You
will notify parties at the beginning of each statement cycle that the statement is available. Upon the establishment of the Escrow Account and the PA Escrow Account, you will send the parties a username, password and instructions for accessing Trust
OnlineTM. Although precaution has been taken to ensure information is transmitted safely and securely, the Escrow 

  

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Agent does not guarantee or warrant the privacy or security of information on the Internet. 
 5.           All funds in the Escrow Account and the PA Escrow Account, until disbursed to the Company in accordance with Section 3 hereof, are to be held for the
benefit of the Subscribers and are not to (i) be commingled with the monies or become an asset of the Company, or (ii) be subject to attachment, levy or other encumbrance in any action by a third party against the Company. 
 6.           Prior to the disbursement of funds deposited in the Escrow Account or the PA Escrow Account, as
applicable, in accordance with the provisions of Section 3 hereof, you shall invest all of the funds deposited in such accounts in Short-Term Investments in compliance with SEC Rule 15c2-4 and you are further authorized and you agree to
reinvest all earnings and interest derived therefrom in Short-Term Investments. In the absence of written direction from the Company, funds deposited in the Escrow Account and the PA Escrow Account, and any earnings and interest derived therefrom,
shall be deposited in the First Republic Bank Business Money Market account. 
 7.          Disbursements
from the Escrow Account and the PA Escrow Account, other than disbursements required pursuant to the provisions of Section 3 hereof, shall be made by you only in accordance with this Section 7. You are authorized to rely upon letter
instructions that you receive from the Company, and, solely with respect to calculations and allocations of interest income among subscribers, from the Dealer Manager, whether or not such instructions are correct, true or authentic; provided that,
if in your opinion such letter instructions are unclear, you are authorized to rely upon the legal counsel to the Company in distributing such funds to the effect that distribution of the funds is authorized by the letter instructions of the Company
and that distribution of the funds in that manner is authorized by and in compliance with such letter. For the purposes of this Agreement, you shall not accept any oral communications from any party. However, you shall not be required to disburse
any funds attributable to checks that have not been collected, provided that you shall use your best efforts to promptly collect such funds after receipt of disbursement instructions from the Company in accordance with this Section, and shall
disburse such funds in compliance with the disbursement instructions from the Company. 
 8.          (a)
If the collected funds are disbursed in accordance with the provisions of Section 3(a), or the Offering terminates prior to receipt of the Minimum Required Capital, or one or more of the PA Subscribers elects to have his or her subscription
returned in accordance with Section 3(c), the Dealer Manager shall calculate each Subscriber’s pro rata portion of Escrow Income or PA Escrow Income, as applicable, in accordance with Section 8(b), and you shall be remit to
Subscribers such amounts in accordance with Section 3 and without any deductions for escrow expenses. 
      (b) Each Subscriber’s pro rata portion of Escrow Income (or PA Escrow Income, as applicable) shall be calculated as follows: the total amount of Escrow Income (or PA Escrow Income, as applicable) upon the
date of the disbursement, shall be multiplied by a fraction, (i) the numerator of which is the product of the number of Shares purchased by such Subscriber multiplied by the number of days such Subscriber’s funds are held in the Escrow
Account (or the PA Escrow Account, as applicable) prior to the date of disbursement, and (ii) the denominator of 

  

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which is the total of the numerators for all Subscribers having funds in such account as of the date of the disbursement. 
 9.           As compensation for serving as Escrow Agent hereunder, you shall receive a fee, as set forth on Exhibit
B. Notwithstanding anything contained herein to the contrary, you shall look to the Company for payment of the fees and expenses, and you waive all right of offset against the funds held in the Escrow Account or the PA Escrow Account pursuant to
the terms of this Agreement. 
 10.         In performing any of your duties hereunder, you shall not incur any
liability to anyone for any damages, losses, or expenses, except for your willful misconduct, breach of trust, or gross negligence. Accordingly, you shall not incur any such liability with respect to any action taken or omitted (a) in good
faith upon advice of your counsel given with respect to any questions relating to your duties and responsibilities under this Agreement, or (b) in reliance upon any instrument, including any written instrument or instruction provided for in
this Agreement, not only as to its due execution and validity and effectiveness of its provisions but also as to the truth and accuracy of information contained therein, which you shall in good faith believe to be genuine, to have been signed or
presented by a proper person or persons and to conform to the provisions of this Agreement. 
 11.         The
Company hereby agrees to indemnify and hold you harmless against any and all losses, claims, damages, liabilities and expenses, including reasonable attorneys’ fees and disbursements, that may be imposed on you or incurred by you in connection
with your acceptance of appointment as the Escrow Agent hereunder, or the performance of your duties hereunder, including any litigation arising from this Agreement or involving the subject matter hereof, except where such losses, claims, damages,
liabilities and expenses result from your willful misconduct, breach of trust or gross negligence. 
 12.         In
the event of a dispute between the parties hereto sufficient in your discretion to justify doing so, you shall be entitled to tender into the registry or custody of any court of competent jurisdiction all money or property in your hands under this
Agreement, together with such legal pleadings as you deem appropriate, and thereupon be discharged from all further duties and liabilities under this Agreement. In the event of any uncertainty as to your duties hereunder, you may refuse to act under
the provisions of this Agreement pending order of a court of competent jurisdiction and you shall have no liability to the Company or to any other person as a result of such action. Any such legal action may be brought in such court as you shall
determine to have jurisdiction thereof. The filing of any such legal proceedings shall not deprive you of your compensation earned prior to such filing. 
 13.         All notices hereunder shall be made in writing. Any such notices shall be given by mailing with postage paid and certified or registered or by personal delivery or by telegraphing or
faxing the same (transmission costs prepaid) to the respective party at the address listed below, and five (5) business days following the date of such mailing or the actual date of such personal delivery, telegraphing or faxing shall be the
date of the giving of such notice. 
  

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 If to you: 
 First Republic
Trust Company 
 1888 Century Park East 
 Los Angeles, CA
90067-1702
 Attn: Stephanie Wheeler 
 Direct Phone:
(310) 407-7170 
 Fax: (310) 407-7171 
 E-mail:
swheeler@firstrepublic.com 
 If to the Company: 
 KBS Real
Estate Investment Trust II, Inc. 
 620 Newport Center Drive, Suite 1300 
 Newport Beach, CA 92660 
 Attn: Charles J. Schreiber, Jr. 
 Direct Phone: (949) 417-6600 
 Fax: (949) 417-6527 
 E-mail: cschreiber@kbsrealty.com 
 If to the Dealer Manager: 
 KBS Capital Markets Group LLC 
 620 Newport Center Drive, Suite 1200 
 Newport Beach, CA 92660 
 Attn: Ken Jaffe 
 Direct Phone: (949) 717-6203 
 Fax: (949) 717-6201 
 E-mail: kjaffe@kbs-cmg.com 
 Each party hereto may, from time to time, change the address to which notices to it are to be
delivered or mailed hereunder by notice in accordance herewith to the other parties. 
 14.         This Agreement
shall be governed by the laws of the State of California as to both interpretation and performance without regard to the conflict of laws rules thereof. 
 15.         The provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable only by the parties hereto and their respective legal representatives, successors and
assigns. 
 16.         The Company and the Dealer Manager hereby acknowledge that you are serving as Escrow Agent
only for the limited purposes herein set forth, and hereby agree that they will not represent or imply that you, by serving as Escrow Agent hereunder or otherwise, have investigated the desirability or advisability of investment in the Company or
have approved, endorsed or passed upon the merits of the Shares or the Company, nor shall they use your name in any manner whatsoever in connection with the offer or sale of the Shares other than by acknowledgment that you have agreed to serve as
Escrow Agent for the limited purposes herein 

  

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set forth. 
 17.        This Agreement and any amendment hereto may be executed by the parties hereto in one or more counterparts, each of which shall be deemed to be an original. 
 18.         (a) In the event that you receive any check related to the Offering from a Non-PA Subscriber after the Minimum
Required Capital has been raised and the proceeds of the Escrow Account have been disbursed in accordance with Section 3(a)(i) hereof, and such check is made payable to you as Escrow Agent for the Company, you agree to: (i) promptly
endorse such check to the order of the Company, and (ii) promptly forward such duly endorsed check to such address as the Company directs in writing, or in the absence of such direction to the Company at the address set forth in
Section 13. The endorsement and forwarding of such checks as directed by the Company, shall be a full acquittance of your obligations hereunder and you shall not be responsible for the application of such funds thereafter. 
 (b) In the event that you receive any check related to the Offering from a PA Subscriber after the PA Required Capital has been raised and the proceeds
of the PA Escrow Account have been disbursed in accordance with Section 3(a)(ii) hereof, and such check is made payable to you as Escrow Agent for the Company, you agree to promptly: (i) promptly endorse such check to the order of the
Company, and (ii) promptly forward such duly endorsed check to such address as the Company directs in writing, or in the absence of such direction to the Company at the address set forth in Section 13. The endorsement and forwarding of
such checks as directed by the Company, shall be a full acquittance of your obligations hereunder and you shall not be responsible for the application of such funds thereafter. 
 19.         You shall be bound only by the terms of this Agreement and shall not be bound by or incur any liability with respect to any other agreements or understandings
between any other parties, whether or not you have knowledge of any such agreements or understandings. 
 21.        
This Agreement shall terminate on the date that all funds held in the Escrow Account and the PA Escrow Account are distributed either (a) to the Company or to subscribers pursuant to Section 3 hereof or (b) to a successor escrow agent
upon written instructions from the Company. The provisions set forth in Sections 11 and 18 shall survive the termination of this Agreement. 
 22.         You have no responsibility for accepting, rejecting or approving subscriptions. 
 23.         This Agreement shall not be modified or amended unless reduced to writing and signed by all parties hereto. 
 24.         If, at any time, any attempt is made to modify or amend this Agreement in a manner that would increase your duties and responsibilities or to modify this Agreement
in any manner that you deem undesirable, or at any other time, you may resign by providing written notice to the Company, which resignation shall be effective upon the earlier of (a) the acceptance by a successor escrow agent appointed by the
Company, or (b) 30 days after such written notice has been given. 
 25.         You may be removed by the
Company by written notice to you effective on the date 

  

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specified in such written notice. Your removal as the Escrow Agent shall not deprive you of compensation earned prior to such removal. 
 26.         In the event of your removal or resignation as the Escrow Agent, the Company shall appoint a successor which, upon
its acceptance in writing of such appointment delivered to you and the Company, shall be vested with all the rights, powers and duties of the Escrow Agent under this Agreement, and you shall be released and discharged from all further liability in
connection with this Agreement. If the Company fails to appoint a successor Escrow Agent within 30 days after your removal or resignation, you may do one of the following: 
 (i) take no further action until directed by the Company; or 
 (ii) tender into the registry or custody of any court of
competent jurisdiction all money or property in your hands under this Agreement, together with such legal pleadings as you deem appropriate. 
 You shall
transfer, assign and deliver to your successor all of the property then held by you under this Agreement. You may also transfer to the successor escrow agent copies of your records as they relate to this Agreement as may be requested by the
successor escrow agent, except as to those records that you have or may assert a claim of privilege. The successor escrow agent shall not be liable or responsible for anything done or omitted in the administration of the escrow accounts pursuant to
this Agreement prior to the date it shall have become Escrow Agent, nor be required to audit or otherwise inquire into or take any action concerning the acts of any retiring Escrow Agent. 
 27.         The parties to this Agreement understand that the Escrow Agent is required to provide United States income tax
reporting for the Escrow Income and the PA Escrow Income. Each subscriber’s pro rata portion of Escrow Income (or PA Escrow Income, as applicable), as calculated by the Dealer Manager in accordance with the provisions of Section 8, shall
be reported by the Escrow Agent as taxable to such subscriber. The Escrow Agent shall generate and deliver to each subscriber a Form 1099 as and when required under the United States income tax laws and regulations. 
 [signatures on following page] 
  

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 Agreed to as of the 22nd day of February, 2008. 
  

			
	KBS REAL ESTATE INVESTMENT TRUST II, INC.
		
	By:	 	 /s/ Charles J. Schreiber, Jr.

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

  

			
	KBS CAPITAL MARKETS GROUP, LLC
		
	By:	 	 /s/ Ken Jaffe

	Name:	 	Ken Jaffe
	Title:	 	Chief Operating Officer

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

			
	FIRST REPUBLIC TRUST COMPANY
		
	By:	 	 /s/ Authorized Signatory

	Name:	 	
	Title:	 	

  

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

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

			
	Signature:	 	  

		
	Name:	 	  

		 	(please print)
	Date:	 	  

  

	
	Please send the subscription refund to:
	
	  

	  

	  

	  

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

					
	 Annual Escrow Agent Fee
	  	$10,000
	
	The first annual fee will be payable upon the execution of this Escrow Agreement and subsequent fees will be payable annually in advance.
		
	 Transaction Fee
	  	$25 for each transaction
	
	Applicable to all securities transactions, disbursements, returned checks, and 1099s generated for the Escrow Account.

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

 Exhibit 10.1 
 ADVISORY AGREEMENT 
 between 
 KBS REAL ESTATE INVESTMENT TRUST II, INC. 
 and 
 KBS CAPITAL ADVISORS LLC 
 March 20, 2008 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 ARTICLE 1—DEFINITIONS
	  	1
	 ARTICLE 2—APPOINTMENT
	  	8
	 ARTICLE 3—DUTIES OF THE ADVISOR
	  	8
	 3.01 Organizational and Offering Services
	  	9
	 3.02 Acquisition Services
	  	9
	 3.03 Asset Management Services
	  	9
	 3.04 Stockholder Services
	  	12
	 3.05 Other Services
	  	12
	 ARTICLE 4—AUTHORITY OF ADVISOR
	  	13
	 4.01 General
	  	13
	 4.02 Powers of the Advisor
	  	13
	 4.03 Approval by the Board
	  	13
	 4.04 Modification or Revocation of Authority of Advisor
	  	13
	 ARTICLE 5—BANK ACCOUNTS
	  	13
	 ARTICLE 6—RECORDS AND FINANCIAL STATEMENTS
	  	14
	 ARTICLE 7—LIMITATION ON ACTIVITIES
	  	14
	 ARTICLE 8—FEES
	  	14
	 8.01 Acquisition Fees
	  	14
	 8.02 Origination Fees
	  	15
	 8.03 Asset Management Fees
	  	16
	 8.04 Disposition Fees
	  	16
	 8.05 Subscription Processing Fee
	  	16
	 8.06 Subordinated Share of Cash Flows
	  	16
	 8.07 Subordinated Incentive Fee
	  	17
	 8.08 Changes to Fee Structure
	  	17
	 ARTICLE 9—EXPENSES
	  	17
	 9.01 General
	  	17
	 9.02 Timing of and Limitations on Reimbursements
	  	19
	 ARTICLE 10—VOTING AGREEMENT
	  	20
	 ARTICLE 11—RELATIONSHIP OF ADVISOR AND COMPANY; OTHER ACTIVITIES OF THE ADVISOR
	  	20
	 11.01 Relationship
	  	20
	 11.02 Time Commitment
	  	20
	 11.03 Investment Opportunities and Allocation
	  	21
	 ARTICLE 12—THE KBS NAME
	  	21
	 ARTICLE 13—TERM AND TERMINATION OF THE AGREEMENT
	  	21
	 13.01 Term
	  	21
	 13.02 Termination by Either Party
	  	22
	 13.03 Payments on Termination and Survival of Certain Rights and Obligations
	  	22
	 ARTICLE 14—ASSIGNMENT
	  	22
	 ARTICLE 15—INDEMNIFICATION AND LIMITATION OF LIABILITY
	  	23

  

 i 

			
	 ARTICLE 16—MISCELLANEOUS
	  	23
	 16.01 Notices
	  	23
	 16.02 Modification
	  	23
	 16.03 Severability
	  	24
	 16.04 Construction
	  	24
	 16.05 Entire Agreement
	  	24
	 16.06 Waiver
	  	24
	 16.07 Gender
	  	24
	 16.08 Titles Not to Affect Interpretation
	  	24
	 16.09 Counterparts
	  	24

  

 ii 

 ADVISORY AGREEMENT 
 This Advisory Agreement, dated as of March 20, 2008 (the “Agreement”), is between KBS Real Estate Investment Trust II, Inc., a Maryland corporation (the “Company”), and KBS Capital Advisors LLC, a
Delaware limited liability company (the “Advisor”). 
 W I T N E S S E T H 
 WHEREAS, the Company desires to avail itself of the knowledge, experience, sources of information, advice, assistance and certain facilities available to
the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the board of directors of the Company (the “Board”), all as provided herein; and

 WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the Board, on the terms and conditions
hereinafter set forth. 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the
parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 The following defined terms used in this Agreement shall have the meanings specified below: 
 “Acquisition Expenses” means any and all expenses, excluding the fee payable to the Advisor pursuant to Section 8.01, incurred by the
Company, the Advisor or any Affiliate of either in connection with the selection, acquisition or development of any property, loan or other potential investment, whether or not acquired or originated, as applicable, including, without limitation,
legal fees and expenses, travel and communications expenses, costs of appraisals, nonrefundable option payments on properties or other investments not acquired, accounting fees and expenses, title insurance premiums. 
 “Acquisition Fees” means the fee payable to the Advisor pursuant to Section 8.01 plus all other fees and commissions, excluding
Acquisition Expenses, paid by any Person to any Person in connection with making or investing in any Property or other Permitted Investment or the purchase, development or construction of any Property by the Company. Included in the computation of
such fees or commissions shall be any real estate commission, selection fee, Development Fee, Construction Fee, nonrecurring management fee, loan fees or points or any fee of a similar nature, however designated. Excluded shall be Development Fees
and Construction Fees paid to Persons not 

  

 1 

 
Affiliated with the Advisor in connection with the actual development and construction of a Property. 
 “Advisor” means (i) KBS Capital Advisors LLC, a Delaware limited liability company, or (ii) any successor advisor to the Company.

 “Affiliate or Affiliated” An Affiliate of another Person includes any of the following: (i) any Person directly or
indirectly controlling, controlled by, or under common control with such other Person; (ii) any Person directly or indirectly owning, controlling, or holding with the power to vote 10% or more of the outstanding voting securities of such other
Person; (iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or
held, with power to vote, by such other Person; and (v) any executive officer, director, trustee, or general partner of such other Person. An entity shall not be deemed to control or be under common control with an Advisor-sponsored program
unless (i) the entity owns 10% or more of the voting equity interests of such program or (ii) a majority of the board of directors (or equivalent governing body) of such program is composed of Affiliates of the entity. 
 “Appraised Value” means the value according to an appraisal made by an Independent Appraiser. 
 “Asset Management Fee” shall have the meaning set forth in Section 8.03. 
 “Average Invested Assets” means, for a specified period, the average of the aggregate book value of the assets of the Company invested,
directly or indirectly, in Properties, Loans and other Permitted Investments secured by real estate before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each
month during such period. 
 “Board” means the board of directors of the Company, as of any particular time. 
 “Bylaws” means the bylaws of the Company, as amended from time to time. 
 “Cash from Financings” means the net cash proceeds realized by the Company from the financing of Properties, Loans or other Permitted
Investments or from the refinancing of any Company indebtedness (after deduction of all expenses incurred in connection therewith). 
 “Cash from Sales” means the net cash proceeds realized by the Company from the sale, exchange or other disposition of any of its assets after deduction of all expenses incurred in connection therewith. In the case of a transaction
described in clause (i) (C) of the definition of “Sale”, Cash From Sales means the proceeds of any such transaction actually distributed to the Company from the Joint Venture or partnership. Cash from Sales shall not include Cash
from Financings. 
  

 2 

 “Cash from Sales and Financings” means the total sum of Cash from Sales and Cash from
Financings. 
 “Charter” means the articles of incorporation of the Company, as amended from time to time. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of
the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 
 “Company” means KBS Real Estate Investment Trust II, Inc., a corporation organized under the laws of the State of Maryland. 
 “Competitive Real Estate Commission” means a real estate or brokerage commission for the purchase or sale of property that is reasonable,
customary, and competitive in light of the size, type, and location of the property. 
 “Conflicts Committee” shall have the
meaning set forth in the Company’s Charter. 
 “Construction Fee” means a fee or other remuneration for acting as general
contractor and/or construction manager to construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation on a Property. 
 “Contract Sales Price” means the total consideration received by the Company for the sale of a Property, Loan or other Permitted Investment. 
 “Cost of Real Estate Investments” means the sum of (i) with respect to Properties wholly owned, directly or indirectly, by the Company,
the amount actually paid or allocated to the purchase, development, construction or improvement of Properties, inclusive of expenses related thereto, plus the amount of any outstanding debt attributable to such Properties and (ii) in the case
of Properties owned by any Joint Venture or any partnership in which the Company or the Partnership is a partner, the portion of the amount actually paid or allocated to the purchase, development, construction or improvement of properties, inclusive
of expenses related thereto, plus the amount of any outstanding debt associated with such properties that is attributable to the Company’s investment in the Joint Venture or partnership. 
 “Dealer Manager” means (i) KBS Capital Markets Group LLC, a Delaware limited liability company, or (ii) any successor dealer manager
to the Company. 
 “Development Fee” means a fee for the packaging of a Property, including negotiating and approving plans, and
undertaking to assist in obtaining zoning and necessary variances and necessary financing for the Property, either initially or at a later date. 
  

 3 

 “Director” means a member of the board of directors of the Company. 
 “Disposition Fee” shall have the meaning set forth in Section 8.03. 
 “Distributions” means any distributions of money or other property by the Company to owners of Shares, including distributions that may
constitute a return of capital for federal income tax purposes. 
 “GAAP” means accounting principals generally accepted in the
United States. 
 “Gross Proceeds” means the aggregate purchase price of all Shares sold for the account of the Company through an
Offering, without deduction for Organization and Offering Expenses. 
 “Independent Appraiser” means a person or entity with no
material current or prior business or personal relationship with the Advisor or the Directors, who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Company, and who is a
qualified appraiser of real estate as determined by the Board. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers (M.A.I.) or the Society of Real Estate Appraisers (S.R.E.A.) shall be
conclusive evidence of such qualification. 
 “Invested Capital” means the amount calculated by multiplying the total number of
Shares purchased by Stockholders by the issue price, reduced by any amounts paid by the Company to repurchase Shares pursuant to the Company’s plan for redemption of Shares. 
 “Joint Venture” means any joint venture, limited liability company or other Affiliate of the Company that owns, in whole or in part, on behalf
of the Company any Properties, Loans or other Permitted Investments. 
 “Listed” or “Listing” shall have the meaning set
forth in the Company’s Charter. 
 “Loans” means mortgage loans and other types of debt financing purchased by the Company,
including, without limitation, mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans. 
 “NASAA Guidelines” means the NASAA Statement of Policy Regarding Real Estate Investment Trusts as in effect on the date hereof. 
 “Net Income” means, for any period, the total revenues applicable to such period, less the total expenses applicable to such period excluding
additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating total allowable Operating Expenses (as defined herein) shall exclude the gain from the sale of the
Company’s assets. 
  

 4 

 “Offering” means any offering of Shares that is registered with the SEC, excluding Shares
offered under any employee benefit plan. 
 “Operating Cash Flow” means Operating Revenue Cash Flows minus the sum of
(i) Operating Expenses, (ii) all principal and interest payments on indebtedness and other sums paid to lenders, (iii) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (iv) taxes, (v) incentive fees paid in
compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of property, and other expenses connected with the acquisition, disposition, and ownership of real estate
interests, loans or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property). 
 “Operating Expenses” means all costs and expenses incurred by the Company, as determined under GAAP, that in any way are related to the operation of the Company or to Company business, including fees paid to
the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and tax
incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad loan reserves,
(v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of property, and other expenses connected with the acquisition,
disposition, and ownership of real estate interests, loans or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property). 
 “Operating Revenue Cash Flows” means the Company’s cash flow from ownership and/or operation of (i) Properties, (ii) Loans,
(iii) Permitted Investments, (iv) short-term investments, and (v) interests in Properties, Loans and Permitted Investments owned by any Joint Venture or any partnership in which the Company or the Partnership is a partner. 

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

 5 

 “Origination Fees” means the fee payable to the Advisor pursuant to Section 8.02 plus all
other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in connection with making or investing in any Loan by the Company. 
 “Partnership” means KBS Limited Partnership, a Delaware limited partnership formed to own and operate Properties, Loans and other Permitted Investments on behalf of the Company. 
 “Permitted Investments” means all investments (other than Properties and Loans) that the Company may acquire pursuant to its Charter, Bylaws
and the investment objectives and policies adopted by the Board from time to time, other than short-term investments acquired for purposes of cash management. 
 “Person” means an individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for
or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or
political subdivision thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 
 “Property” means any real property or properties transferred or conveyed to the Company or the Partnership, either directly or indirectly, including through ownership interests in a Joint Venture or
partnership. 
 “Property Manager” means an entity that has been retained to perform and carry out at one or more of the Properties
property-management services, excluding persons, entities or independent contractors retained or hired to perform facility management or other services or tasks at a particular Property, the costs for which are passed through to and ultimately paid
by the tenant at such Property. 
 “Registration Statement” means the registration statement filed by the Company with the SEC on
Form S-11 (Reg. No. 333-146341), as amended from time to time, in connection with the initial public offering of the Company’s Shares. 
 “REIT” means a “real estate investment trust” under Sections 856 through 860 of the Code. 
 “Sale”
means (i) any transaction or series of transactions whereby: (A) the Company or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of any Property, Loan or other Permitted Investment or portion thereof,
including the transfer of any Property that is the subject of a ground lease, and including any event with respect to any Property, Loan or other Permitted Investment that gives rise to a significant amount of insurance proceeds or condemnation
awards; (B) the Company or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the Company or the Partnership in any Joint Venture or any partnership in which it is a
partner; or (C) any Joint Venture or any partnership in which the Company or the Partnership is a partner, sells, grants, transfers, conveys, or 

  

 6 

 
relinquishes its ownership of any Property, Loan or other Permitted Investment or portion thereof, including any event with respect to any Property, Loan or
other Permitted Investment that gives rise to insurance claims or condemnation awards, but (ii) not including any transaction or series of transactions specified in clause (i) (A), (i) (B), or (i) (C) above in which the
proceeds of such transaction or series of transactions are reinvested in one or more Properties, Loans or other Permitted Investments within 180 days thereafter. 
 “SEC” means the United States Securities and Exchange Commission. 
 “Shares” means
shares of common stock of the Company, par value $.01 per share. 
 “Stockholders” means the registered holders of the Shares.

 “Stockholders’ 8% Return” means, as of any date, an aggregate amount equal to an 8% cumulative, non-compounded, annual
return on Invested Capital (calculated like simple interest on a daily basis based on a three hundred sixty-five day year). For purposes of calculating the Stockholders’ 8% Return, Invested Capital shall be determined for each day during the
period for which the Stockholders’ 8% Return is being calculated and shall be calculated net of (1) Distributions of Operating Cash Flow to the extent such Distributions of Operating Cash Flow provide a cumulative, non-compounded, annual
return in excess of 8%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year and (2) Distributions of Cash from Sales and Financings, except to the extent such Distributions would be required to supplement
Distributions of Operating Cash Flow in order to achieve a cumulative, non-compounded, annual return of 8%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year. 
 “Subordinated Incentive Fee” means the fee payable to the Advisor under certain circumstances if the Shares are Listed, as calculated in
Section 8.07. 
 “Subordinated Performance Fee Due Upon Termination” means a fee payable in the form of an interest bearing
promissory note (the “Performance Fee Note”) in a principal amount equal to (1) 15% of the amount, if any, by which (a) the Appraised Value of the Company’s Properties at the Termination Date, less amounts of all
indebtedness secured by the Company’s Properties, plus the fair market value of all other Loans and Permitted Investments of the Company at the Termination Date, less amounts of indebtedness related to such Loans and Permitted Investments, plus
total Distributions (excluding any stock dividend) through the Termination Date exceeds (b) the sum of Invested Capital plus total Distributions required to be made to the stockholders in order to pay the Stockholders’ 8% Return from
inception through the Termination Date less (2) any prior payment to the Advisor of a Subordinated Share of Cash Flows. Interest on the Performance Fee Note will accrue beginning on the Termination Date at a rate deemed fair and reasonable by
the Conflicts Committee. The Company shall repay the Performance Fee Note at such time as the Company completes the first Sale after the Termination Date using Cash from Sales. If the Cash from Sales from the first Sale after 

  

 7 

 
the Termination Date is insufficient to pay the Performance Fee Note in full, including accrued interest, then the Performance Fee Note shall be paid in part
from the Cash from Sales from the first Sale, and in part from the Cash From Sales from each successive Sale until the Performance Fee Note is repaid in full, with interest. If the Performance Fee Note has not been paid in full within five years
from the Termination Date, then the Advisor, its successors or assigns, may elect to convert the balance of the fee, including accrued but unpaid interest, into Shares at a price per Share equal to the average closing price of the Shares over the
ten trading days immediately preceding the date of such election if the Shares are Listed at such time. If the Shares are not Listed at such time, the Advisor, its successors or assigns, may elect to convert the balance of the fee, including accrued
but unpaid interest, into Shares at a price per Share equal to the fair market value for the Shares as determined by the Board based upon the Appraised Value of Company’s Properties on the date of election plus the fair market value of all
other Loans and Permitted Investments of the Company on the date of election. 
 “Subordinated Share of Cash Flows” has the meaning
set forth in Section 8.06. 
 “Subscription Processing Fee” has the meaning set forth in Section 8.05. 
 “Termination Date” means the date of termination of the Agreement determined in accordance with Article 13 hereof. 
 “2%/25% Guidelines” means the requirement pursuant to the NASAA Guidelines that, in any period of four consecutive fiscal quarters, total
Operating Expenses not exceed the greater of 2% of the Company’s Average Invested Assets during such 12-month period or 25% of the Company’s Net Income over the same 12-month period. 
 ARTICLE 2 
 APPOINTMENT 
 The Company hereby appoints the Advisor to serve as its advisor and asset manager on the terms and conditions set forth in this Agreement, and the
Advisor hereby accepts such appointment. 
 ARTICLE 3 
 DUTIES OF THE ADVISOR 
 The Advisor is responsible for managing, operating, directing and supervising the
operations and administration of the Company and its assets. The Advisor undertakes to use its best efforts to present to the Company potential investment opportunities and to provide the Company with a continuing and suitable investment program
consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board. Subject to the limitations set forth in this Agreement, including Article 4 hereof, and the continuing and exclusive
authority of the Board over 

  

 8 

 
the management of the Company, the Advisor shall, either directly or by engaging an Affiliate or third party, perform the following duties: 
 3.01 Organizational and Offering Services. The Advisor shall perform all services related to the organization of the Company or any Offering or private
sale of the Company’s securities, other than services that (i) are to be performed by the Dealer Manager, (ii) the Company elects to perform directly or (iii) would require the Advisor to register as a broker-dealer with the SEC
or any state. 
 3.02 Acquisition Services. 
 (i) Serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data in connection with the Company’s assets and investment objectives and
policies; 
 (ii) Subject to Section 4 hereof and the investment objectives and policies of the Company: (a) locate,
analyze and select potential investments; (b) structure and negotiate the terms and conditions of transactions pursuant to which investments in Properties, Loans and other Permitted Investments will be made; (c) acquire Properties, Loans
and other Permitted Investments on behalf of the Company; (d) arrange for financing and refinancing and make other changes in the asset or capital structure of investments in Properties, Loans and other Permitted Investments; and (e) enter
into leases, service contracts and other agreements for Properties; 
 (iii) Perform due diligence on prospective investments
and create due diligence reports summarizing the results of such work; 
 (iv) Prepare reports regarding prospective
investments that include recommendations and supporting documentation necessary for the Directors to evaluate the proposed investments; 
 (v) Obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of contemplated investments of the Company; 
 (vi) Deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the Company’s investments;
and 
 (vii) Negotiate and execute approved investments and other transactions. 
 3.03 Asset Management Services. 
 (i) Real Estate and Related Services: 
 (a) Investigate, select and, on behalf of the Company, engage and conduct
business with (including enter contracts with) such Persons as the Advisor deems necessary to the proper performance of its obligations as 

  

 9 

 
set forth in this Agreement, including but not limited to consultants, accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate
fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, developers, construction companies, Property Managers and any and all Persons acting in any other capacity deemed by the Advisor necessary or
desirable for the performance of any of the foregoing services; 
 (b) Negotiate and service the Company’s debt
facilities and other financings; 
 (c) Monitor applicable markets and obtain reports (which may be prepared by the Advisor or
its Affiliates) where appropriate, concerning the value of investments of the Company; 
 (d) Monitor and evaluate the
performance of each asset of the Company and the Company’s overall portfolio of assets, provide daily management services to the Company and perform and supervise the various management and operational functions related to the Company’s
investments; 
 (e) Formulate and oversee the implementation of strategies for the administration, promotion, management,
operation, maintenance, improvement, financing and refinancing, marketing, leasing and disposition of Properties, Loans and other Permitted Investments on an overall portfolio basis; 
 (f) Consult with the Company’s officers and the Board and assist the Board in the formulation and implementation of the
Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any
borrowings proposed to be undertaken by the Company; 
 (g) Oversee the performance by the Property Managers of their duties,
including collection and proper deposits of rental payments and payment of Property expenses and maintenance; 
 (h) Conduct
periodic on-site property visits to some or all (as the Advisor deems reasonably necessary) of the Properties to inspect the physical condition of the Properties and to evaluate the performance of the Property Managers; 
 (i) Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and submitted by each Property
Manager and aggregate these property budgets into the Company’s overall budget; 
  

 10 

 (j) Coordinate and manage relationships between the Company and any Joint Venture
partners; and 
 (k) Consult with the Company’s officers and the Board and provide assistance with the evaluation and
approval of potential asset dispositions, sales and refinancings. 
 (ii) Accounting and Other Administrative Services:

 (a) Provide the day-to-day management of the Company and perform and supervise the various administrative functions
reasonably necessary for the management of the Company; 
 (b) From time to time, or at any time reasonably requested by the
Board, make reports to the Board on the Advisor’s performance of services to the Company under this Agreement; 
 (c)
Make reports to the Conflicts Committee each quarter of the investments that have been made by other programs sponsored by the Advisor or any of its Affiliates, including KBS Realty Advisors LLC, as well as any investments that have been made by the
Advisor or any of its Affiliates directly; 
 (d) Provide or arrange for any administrative services and items, legal and
other services, office space, office furnishings, personnel and other overhead items necessary and incidental to the Company’s business and operations; 
 (e) Provide financial and operational planning services; 
 (f) Maintain accounting and other record-keeping functions at the Company and investment levels, including information concerning the
activities of the Company as shall be required to prepare and to file all periodic financial reports, tax returns and any other information required to be filed with the SEC, the Internal Revenue Service and any other regulatory agency; 

(g) Maintain and preserve all appropriate books and records of the Company; 
 (h) Provide tax and compliance services and coordinate with appropriate third parties, including the Company’s independent auditors
and other consultants, on related tax matters; 
 (i) Provide the Company with all necessary cash management services;

  

 11 

 (j) Manage and coordinate with the transfer agent the monthly dividend process and
payments to Stockholders; 
 (k) Consult with the Company’s officers and the Board and assist the Board in evaluating and
obtaining adequate insurance coverage based upon risk management determinations; 
 (l) Provide the Company’s officers
and the Board with timely updates related to the overall regulatory environment affecting the Company, as well as managing compliance with such matters, including but not limited to compliance with the Sarbanes-Oxley Act of 2002; 
 (m) Consult with the Company’s officers and the Board relating to the corporate governance structure and appropriate policies and
procedures related thereto; 
 (n) Perform all reporting, record keeping, internal controls and similar matters in a manner to
allow the Company to comply with applicable law, including federal and state securities laws and the Sarbanes-Oxley Act of 2002; 
 (o) Notify the Board of all proposed material transactions before they are completed; and 
 (p) Do all things
necessary to assure its ability to render the services described in this Agreement. 
 3.04 Stockholder Services. 
 (i) Manage services for and communications with Stockholders, including answering phone calls, preparing and sending written and
electronic reports and other communications; 
 (ii) Oversee the performance of the transfer agent and registrar; 

(iii) Establish technology infrastructure to assist in providing Stockholder support and service; and 
 (iv) Consistent with Section 3.01, the Advisor shall perform the various subscription processing services reasonably necessary for
the admission of new Stockholders. 
 3.05 Other Services. Except as provided in Article 7, the Advisor shall perform any other services
reasonably requested by the Company (acting through the Conflicts Committee). 
  

 12 

 ARTICLE 4 
 AUTHORITY OF ADVISOR 
 4.01 General. All rights and powers to manage and control the day-to-day business and
affairs of the Company shall be vested in the Advisor. The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the business and affairs of the Company to such officers, employees, Affiliates,
agents and representatives of the Advisor or the Company as it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the Advisor specifically set forth in
this Agreement or the Charter. 
 4.02 Powers of the Advisor. Subject to the express limitations set forth in this Agreement and the
continuing and exclusive authority of the Board over the management of the Company, the power to direct the management, operation and policies of the Company shall be vested in the Advisor, which shall have the power by itself and shall be
authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other undertakings that it may in its sole
discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement. 
 4.03 Approval by the Board.
Notwithstanding the foregoing, the Advisor may not take any action on behalf of the Company without the prior approval of the Board or duly authorized committees thereof if the Charter or Maryland General Corporation Law require the prior approval
of the Board. The Advisor will deliver to the Board all documents required by it to evaluate a proposed investment (and any related financing). 
 4.04 Modification or Revocation of Authority of Advisor. The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or approvals set forth in Article 3 and this Article 4 hereof; provided, however,
that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of such
notification. 
 ARTICLE 5 
 BANK
ACCOUNTS 
 The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of
the Company and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Board may approve, provided that no funds shall be
commingled with the funds of the Advisor. The Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and the independent auditors of the Company. 
  

 13 

 ARTICLE 6 
 RECORDS AND FINANCIAL STATEMENTS 
 The Advisor, in the conduct of its responsibilities to the Company, shall
maintain adequate and separate books and records for the Company’s operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded. Such
books and records shall be the property of the Company and shall be available for inspection by the Board and by counsel, auditors and other authorized agents of the Company, at any time or from time to time during normal business hours. Such books
and records shall include all information necessary to calculate and audit the fees or reimbursements paid under this Agreement. The Advisor shall utilize procedures to attempt to ensure such control over accounting and financial transactions as is
reasonably required to protect the Company’s assets from theft, error or fraudulent activity. All financial statements that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, except for special
financial reports that by their nature require a deviation from GAAP. The Advisor shall liaise with the Company’s officers and independent auditors and shall provide such officers and auditors with the reports and other information that the
Company so requests. 
 ARTICLE 7 
 LIMITATION ON ACTIVITIES 
 Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take any action
that, in its sole judgment made in good faith, would (i) adversely affect the ability of the Company to qualify or continue to qualify as a REIT under the Code, (ii) subject the Company to regulation under the Investment Company Act of
1940, as amended, (iii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Shares or its other securities, (iv) require the Advisor to register as a
broker-dealer with the SEC or any state, or (v) violate the Charter or Bylaws. In the event an action that would violate (i) through (v) of the preceding sentence but such action has been ordered by the Board, the Advisor shall notify
the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board. In such event, the Advisor shall have no liability for
acting in accordance with the specific instructions of the Board so given. 
 ARTICLE 8 
 FEES 
 8.01 Acquisition Fees. As compensation
for the investigation, selection and acquisition (by purchase, investment or exchange) of Properties and other Permitted Investments, the Company shall pay an Acquisition Fee to the Advisor for each such 

  

 14 

 
investment. With respect to the acquisition of a Property to be wholly owned by the Company, the Acquisition Fee payable to the Advisor shall equal 0.75% of
the sum of the amount actually paid or allocated to the purchase, development, construction or improvement of such Property, inclusive of the Acquisition Expenses associated with such Property, and the amount of any debt attributable to such
Property. With respect to other wholly owned Permitted Investments, the Acquisition Fee payable to the Advisor shall equal 0.75% of the cost of such investment, inclusive of Acquisition Expenses associated with such investment, and the amount of any
debt attributable to such Permitted Investment. With respect to the acquisition of a Property or other Permitted Investment through any Joint Venture or any partnership in which the Company or the Partnership is a partner, the Acquisition Fee
payable to the Advisor shall equal 0.75% of the portion of the amount actually paid or allocated to the purchase, development, construction or improvement of the Property or other Permitted Investment, inclusive of the Acquisition Expenses
associated with such Property or Permitted Investment, plus the amount of any outstanding debt associated with such Property or Permitted Investment that is attributable to the Company’s investment in the Joint Venture or partnership.
Notwithstanding anything herein to the contrary, the payment of Acquisition Fees by the Company shall be subject to the limitations contained in the Company’s Charter. The Advisor shall submit an invoice to the Company following the closing or
closings of each acquisition, accompanied by a computation of the Acquisition Fee. The Acquisition Fee payable to the Advisor shall be paid at the closing of the acquisition upon receipt of the invoice by the Company. The Company will not pay an
Acquisition Fee to the Advisor with respect to any transaction in which the Company is required to pay an Origination Fee to the Advisor pursuant to the provisions of Section 8.02 below. 
 8.02 Origination Fees. As compensation for the investigation, selection, sourcing and acquisition or origination of Loans, the Company shall pay an
Origination Fee to the Advisor for each such acquisition or origination. With respect to the acquisition or origination of a Loan to be wholly owned by the Company, the Origination Fee payable to the Advisor shall equal 1% of the amount funded by
the Company to acquire or originate the Loan, including any Acquisition Expenses related to such investment and any debt used to fund the acquisition or origination of the Loan. With respect to the acquisition of a Loan through any Joint Venture or
any partnership in which the Company or the Partnership is a partner, the Origination Fee payable to the Advisor shall equal 1% of the portion of the amount actually paid or allocated to acquire or originate the Loan, inclusive of the Acquisition
Expenses associated with such Loan, plus the amount of any outstanding debt associated with such Loan that is attributable to the Company’s investment in the Joint Venture or partnership. The Company will not pay an Origination Fee to the
Advisor with respect to any transaction pursuant to which the Company is required to pay the Advisor an Acquisition Fee. Notwithstanding anything herein to the contrary, the payment of Origination Fees by the Company shall be subject to the
limitations on Acquisition Fees contained in (and defined in) the Company’s Charter. The Advisor shall submit an invoice to the Company following the closing or closings of each Loan, accompanied by a computation of the Origination Fee. The
Origination Fee payable to the Advisor shall be paid at the closing of the transaction upon receipt of the invoice by the Company. 
  

 15 

 8.03 Asset Management Fees. The Company shall pay the Advisor as compensation for the services described
in Section 3.03 hereof a monthly fee (the “Asset Management Fee”) in an amount equal to one-twelfth of 0.75% of the sum of the Cost of Real Estate Investments and the outstanding principal amount of the Loans and other Permitted
Investments, as of the end of the preceding month. The Advisor shall submit a monthly invoice to the Company, accompanied by a computation of the Asset Management Fee for the applicable period. The Asset Management Fee shall be payable on the last
day of such month, or the first business day following the last day of such month. The Asset Management Fee may or may not be taken, in whole or in part, as to any year in the sole discretion of the Advisor. All or any portion of the Asset
Management Fee not taken as to any fiscal year shall be deferred without interest and may be paid in such other fiscal year as the Advisor shall determine. 
 8.04 Disposition Fees. If the Advisor or any of its Affiliates provide a substantial amount of services (as determined by the Conflicts Committee) in connection with a Sale, the Advisor or such Affiliate shall receive
a fee at the closing (the “Disposition Fee”) equal to 1% of the Contract Sales Price; provided, however, that no Disposition Fee shall be payable to the Advisor for any Sale if such Sale involves the Company selling all or substantially
all of its assets in one or more transactions designed to effectuate a business combination transaction (as opposed to a Company liquidation, in which case the Disposition Fee would be payable if the Advisor or an Affiliate provides a substantial
amount of services as provided above). The payment of any Disposition Fees by the Company shall be subject to the limitations contained in the Company’s Charter. Any Disposition Fee payable under this Section 8.04 may be paid in addition
to real estate commissions paid to non-Affiliates, provided that the total real estate commissions (including such Disposition Fee) paid to all Persons by the Company for each Property shall not exceed an amount equal to the lesser of (i) 6% of
the aggregate Contract Sales Price of each Property or (ii) the Competitive Real Estate Commission for each Property. Substantial assistance in connection with the sale of a Property includes the Advisor’s preparation of an investment
package for the Property (including a new investment analysis, rent rolls, tenant information regarding credit, a property title report, an environmental report, a structural report and exhibits) or such other substantial services performed by the
Advisor in connection with a sale. 
 8.05 Subscription Processing Fee. The Company shall pay the Advisor as compensation for the services
described in Section 3.04(iv) hereof a monthly fee (the “Subscription Processing Fee”) in an amount equal to $35 per subscription agreement for Shares received and processed by the Advisor. The Advisor shall submit a monthly invoice
to the Company, accompanied by a computation of the total amount of the Subscription Processing Fee for the applicable period. The Subscription Processing Fee shall be payable on the last day of such month, or the first business day following the
last day of such month. 
 8.06 Subordinated Share of Cash Flows. The Subordinated Share of Cash Flows shall be payable to the Advisor in an
amount equal to 15% of Operating Cash Flow and Cash from Sales and Financings remaining after the Stockholders have received Distributions of Operating Cash Flow and of Cash from Sales and Financings such that 

  

 16 

 
the owners of all outstanding Shares have received Distributions in an aggregate amount equal to the sum of: 
  

	 	a.	the Stockholders’ 8% Return and 

  

	 	b.	Invested Capital. 

 When determining whether the above threshold has been
met: 
  

	 	(A)	Any stock dividend shall not be included as a Distribution; and 

  

	 	(B)	Distributions paid on Shares redeemed by the Company (and thus no longer included in the determination of Invested Capital), shall not be included as a Distribution.

 Following Listing, no Subordinated Share of Cash Flows will be paid to the Advisor. 
 8.07 Subordinated Incentive Fee. Upon Listing, the Advisor shall be entitled to the Subordinated Incentive Fee in an amount equal to 15% of the amount by
which (i) the market value of the outstanding Shares of the Company, measured by taking the average closing price or the average of the bid and asked price, as the case may be, over a period of 30 days during which the Shares are traded, with
such period beginning 180 days after Listing (the “Market Value”), plus the total of all Distributions paid to Stockholders (excluding any stock dividends) from the Company’s inception until the date that Market Value is determined,
exceeds (ii) the sum of (A) 100% of Invested Capital and (B) the total Distributions required to be paid to the Stockholders in order to pay the Stockholders’ 8% Return from inception through the date Market Value is determined.
The Company shall have the option to pay such fee in the form of cash, Shares, a promissory note or any combination of the foregoing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor of a Subordinated
Share of Cash Flows. In the event the Subordinated Incentive Fee is paid to the Advisor following Listing, no other performance fee will be paid to the Advisor. 
 8.08 Changes to Fee Structure. In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a perpetual-life entity. 
 ARTICLE 9 
 EXPENSES 
 9.01 General. In addition to the compensation paid to the Advisor pursuant to Article 8 hereof, the Company shall pay directly or reimburse the Advisor
for all of the expenses paid or incurred by the Advisor or its Affiliates on behalf of the Company or in connection with the services provided to the Company pursuant to this Agreement, including, but not limited to: 
  

 17 

 (i) All Organization and Offering Expenses; provided, however, that the Company shall not
reimburse the Advisor to the extent such reimbursement would cause the total amount spent by the Company on Organization and Offering Expenses to exceed 15% of the Gross Proceeds raised as of the date of the reimbursement and provided further that
within 60 days after the end of the month in which an Offering terminates, the Advisor shall reimburse the Company to the extent the Company incurred Organization and Offering Expenses exceeding 15% of the Gross Proceeds raised in the completed
Offering; the Company shall not reimburse the Advisor for any Organization and Offering Expenses that the Conflicts Committee determines are not fair and commercially reasonable to the Company; 
 (ii) Acquisition Fees, Origination Fees and Acquisition Expenses incurred in connection with the selection and acquisition of Properties,
Loans and other Permitted Investments, including such expenses incurred related to assets pursued or considered but not ultimately acquired by the Company, provided that, notwithstanding anything herein to the contrary, the payment of Acquisition
Fees, Origination Fees and Acquisition Expenses by the Company shall be subject to the limitations contained in the Company’s Charter; 
 (iii) The actual out-of-pocket cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor; 
 (iv) Interest and other costs for borrowed money, including discounts, points and other similar fees; 
 (v) Taxes and assessments on income or Properties, taxes as an expense of doing business and any other taxes otherwise imposed on the
Company and its business, assets or income; 
 (vi) Out-of-pocket costs associated with insurance required in connection with
the business of the Company or by its officers and Directors; 
 (vii) Expenses of managing, improving, developing, operating
and selling Properties and other assets owned by the Company; 
 (viii) All out-of-pocket expenses in connection with payments
to the Board and meetings of the Board and Stockholders; 
 (ix) Personnel and related employment costs incurred by the
Advisor or its Affiliates in performing the services described in Article 3 hereof, including but not limited to reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services, provided
that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to the extent that such employees perform services for which the Advisor receives Acquisition Fees, Origination Fees or Disposition Fees; 
  

 18 

 (x) Out-of-pocket expenses of providing services for and maintaining communications with
Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 
 (xi) Audit, accounting and legal fees, and other fees for professional services relating to the operations of the Company and all such
fees incurred at the request, or on behalf of, the Board, the Conflicts Committee or any other committee of the Board; 
 (xii) Out-of-pocket costs for the Company to comply with all applicable laws, regulations and ordinances; 
 (xiii)
Expenses connected with payments of Distributions made or caused to be made by the Company to the Stockholders; 
 (xiv)
Expenses of organizing, redomesticating, merging, liquidating or dissolving the Company or of amending the Charter or the Bylaws; and 
 (xv) All other out-of-pocket costs incurred by the Advisor in performing its duties hereunder. 
 9.02 Timing
of and Additional Limitations on Reimbursements. 
 (i) Expenses incurred by the Advisor on behalf of the Company and
reimbursable pursuant to this Article 9 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter and shall deliver such statement to the Company within
45 days after the end of each quarter. 
 (ii) Notwithstanding anything else in this Article 9 to the contrary, the expenses
enumerated in this Article 9 shall not become reimbursable to the Advisor unless and until the Company has raised $2.5 million in the initial public offering of its Shares. 
 (iii) Commencing four fiscal quarters after the Company’s acquisition of its first real estate asset, the following limitation on
Operating Expenses shall apply: The Company shall not reimburse the Advisor at the end of any fiscal quarter for Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess
Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year unless the Conflicts Committee determines that such excess was justified, based on unusual and nonrecurring factors
that the Conflicts Committee deems sufficient. If the Conflicts Committee does not approve such excess as being so justified, any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company. If the Conflicts Committee
determines such excess was justified, then, within 60 days after the end of any fiscal quarter of the Company for which total reimbursed Operating Expenses for the Expense Year 

  

 19 

 
exceed the 2%/25% Guidelines, the Advisor, at the direction of the Conflicts Committee, shall cause such fact to be disclosed to the Stockholders in writing
(or the Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form 8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors the
Conflicts Committee considered in determining that such excess expenses were justified. The Company will ensure that such determination will be reflected in the minutes of the meetings of the Board. All figures used in the foregoing computation
shall be determined in accordance with GAAP applied on a consistent basis. 
 ARTICLE 10 
 VOTING AGREEMENT 
 The Advisor agrees that,
with respect to any Shares now or hereinafter owned by it, the Advisor will not vote or consent on matters submitted to the stockholders of the Company regarding (i) the removal of the Advisor or any Affiliate of the Advisor or (ii) any
transaction between the Company and the Advisor or any of its Affiliates. This voting restriction shall survive until such time that the Advisor is both no longer serving as such and is no longer an Affiliate of the Company. 
 ARTICLE 11 
 RELATIONSHIP OF ADVISOR AND
COMPANY; 
 OTHER ACTIVITIES OF THE ADVISOR 
 11.01 Relationship. The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers. Nothing herein
contained shall prevent the Advisor from engaging in other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the
Advisor or its Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director, officer, employee or equityholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any
other Person. The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall promptly disclose to the Board the existence of any
condition or circumstance, existing or anticipated, of which it has knowledge, that creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other Person.

 11.02 Time Commitment. The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to
the Company such time as shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement. The Company 

  

 20 

 
acknowledges that the Advisor and its Affiliates and their respective employees, officers and agents may also engage in activities unrelated to the Company
and may provide services to Persons other than the Company or any of its Affiliates. 
 11.03 Investment Opportunities and Allocation. The
Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the Company that is consistent with the investment policies and objectives of the Company, but neither the Advisor nor any
Affiliate of the Advisor shall be obligated generally to present any particular investment opportunity to the Company even if the opportunity is of character that, if presented to the Company, could be taken by the Company. In the event an
investment opportunity is located, the allocation procedure set forth under the caption “Conflicts of Interest – Certain Conflict Resolution Measures – Allocation of Investment Opportunities” in the Registration Statement shall
govern the allocation of the opportunity among the Company and Affiliates of the Advisor. 
 ARTICLE 12 
 THE KBS NAME 
 The Advisor and its Affiliates
have a proprietary interest in the name “KBS.” The Advisor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free right and license to use the name “KBS” during the term of this Agreement.
Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request from the
Advisor, cease to conduct business under or use the name “KBS” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the name “KBS” or any other
word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to any
trademarks, servicemarks or other marks necessary to remove any references to the word “KBS.” Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the
future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having “KBS” as a part of their name, all without the need for any
consent (and without the right to object thereto) by the Company. 
 ARTICLE 13 
 TERM AND TERMINATION OF THE AGREEMENT 
 13.01 Term. This Agreement shall have an
initial term of one year from the date hereof and may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties. The Company (acting through the Conflicts Committee) will evaluate the performance of the
Advisor annually before renewing this Agreement, 

  

 21 

 
and each such renewal shall be for a term of no more than one year. Any such renewal must be approved by the Conflicts Committee. 
 13.02 Termination by Either Party. This Agreement may be terminated upon 60 days written notice without cause or penalty by either the Company (acting
through the Conflicts Committee) or the Advisor. The provisions of Articles 1, 10, 12, 13, 15 and 16 shall survive termination of this Agreement. 
 13.03 Payments on Termination and Survival of Certain Rights and Obligations. Payments to the Advisor pursuant to this Section 13.03 shall be subject to the 2%/25% Guidelines to the extent applicable. 
 (i) After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except it shall be
entitled to receive from the Company within 30 days after the effective date of such termination (A) all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement and
(B) the Subordinated Performance Fee Due Upon Termination, provided that no Subordinated Performance Fee Due Upon Termination will be paid if the Company has paid or is obligated to pay the Subordinated Incentive Fee. 
 (ii) The Advisor shall promptly upon termination: 
 (a) pay over to the Company all money collected pursuant to this Agreement, if any, after deducting any accrued compensation and
reimbursement for its expenses to which it is then entitled; 
 (b) deliver to the Board a full accounting, including a
statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board; 
 (c) deliver to the Board all assets and documents of the Company then in the custody of the Advisor; and 
 (d) cooperate with the Company to provide an orderly transition of advisory functions. 
 ARTICLE 14 
 ASSIGNMENT 
 This Agreement may be assigned by the Advisor to an Affiliate with the consent of the Conflicts Committee. The Advisor may assign any rights to receive
fees or other payments under this Agreement without obtaining the approval of the Board. This Agreement shall not be assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or
other 

  

 22 

 
organization that is a successor to all of the assets, rights and obligations of the Company, in which case such successor organization shall be bound
hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 
 ARTICLE 15 
 INDEMNIFICATION AND LIMITATION OF LIABILITY 
 The Company shall indemnify, defend and hold harmless the Advisor and its Affiliates, including their respective officers, directors, equity holders, partners and employees, from all liability, claims, damages or losses arising in the
performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, subject to any limitations
imposed by the Company’s Charter. Any indemnification of the Advisor may be made only out of the net assets of the Company and not from Stockholders. 
 ARTICLE 16 
 MISCELLANEOUS 
 16.01 Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the
Charter, the Bylaws or is accepted by the party to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein: 
 To the Company or the Board: 
 KBS Real Estate Investment Trust, Inc. 
 620 Newport Center Drive, Suite 1300 
 Newport Beach, California 92660 
 To the Advisor: 
 KBS Capital Advisors LLC 
 660 Newport Center Drive, Suite 1200 
 Newport Beach, California 92660 
 Either party may at any time give notice in writing to the other party of
a change in its address for the purposes of this Section 16.01. 
 16.02 Modification. This Agreement shall not be changed, modified,
terminated or discharged, in whole or in part, except by an instrument in writing signed by both parties hereto, or their respective successors or permitted assigns. 
  

 23 

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

16.05 Entire Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control
and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
 16.06 Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right,
remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver. 
 16.07 Gender. Words used herein regardless of the number and gender specifically used, shall be
deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
 16.08 Titles Not to Affect Interpretation. The titles of Articles and Sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or
interpretation hereof. 
 16.09 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to
be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the signatories. 
 [The remainder of this page is intentionally left
blank. 
 Signature page follows.] 
  

 24 

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

											
	KBS REAL ESTATE INVESTMENT TRUST II, INC.
		
	By:	 	 /s/ Charles J. Schreiber, Jr.

		 	Charles J. Schreiber, Jr., Chief Executive Officer
	
	KBS CAPITAL ADVISORS LLC
		
	By:	 	PBren Investments, L.P., a Manager
			
		 	By:	 	PBren Investments, LLC, as general partner
				
		 		 	By:	 	 /s/ Peter M. Bren

		 		 		 	Peter M. Bren, Manager
		
	By:	 	Schreiber Real Estate Investments, L.P., a Manager
			
		 	By:	 	Schreiber Investments, LLC, as general partner
				
		 		 	By:	 	 /s/ Charles J. Schreiber, Jr.

		 		 		 	Charles J. Schreiber, Jr., Manager

  

 25

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