Document:

Exhibit

Exhibit 4.3
FORM OF
THIRD AMENDED AND RESTATED
DIVIDEND REINVESTMENT PLAN
Adopted __________,  2016
KBS Strategic Opportunity REIT II, Inc., a Maryland corporation (the “Company”), has adopted a Third Amended and Restated Dividend Reinvestment Plan (the “DRP”), the terms and conditions of which are set forth below. Capitalized terms shall have the same meaning as set forth in the Company’s charter, as amended and supplemented, unless otherwise defined herein.
1.Amount of Shares Issuable. Up to an aggregate of 76,366,006 shares in any combination of Class A and Class T Common Stock (the “Shares”) is authorized for issuance under the DRP.
2.Participants. “Participants” are holders of the Company’s shares of any class of Common Stock who elect to participate in the DRP regardless of the offering in which such Participant acquired their shares.
3.Dividend Reinvestment. Exclusive of dividends and other distributions that the Company’s board of directors designates as ineligible for reinvestment through this DRP, the Company will apply that portion (as designated by a Participant) of the dividends and other distributions (“Distributions”) declared and paid in respect of a Participant’s shares of any class of Common Stock to the purchase of additional Shares for such Participant. Purchases will be in the same class of Shares as the shares for which such Participant received the distributions that are being reinvested. The Company will not pay selling commissions or dealer manager fees on the Shares purchased in the DRP.  No stockholder servicing fee will be paid with respect to Shares of Class T Common Stock purchased through this DRP; however, the stockholder servicing fee payable by the Company with respect to shares of Class T Common Stock purchased in a primary offering will be allocated to all shares of Class T Common Stock as a class expense.  The stockholder servicing fee therefore will impact the distributions payable on all shares of Class T Common Stock and may impact the NAV of all shares of Class T Common Stock if the amount of the stockholder servicing fee payable on the shares of Class T Common Stock sold in a primary offering exceeds amounts available for distribution to holders of shares of Class A Common Stock. 
4.Procedures for Participation. Qualifying stockholders may elect to become Participants or to increase participation in the DRP by completing and executing the Subscription Agreement, an enrollment form or any other Company-approved authorization form as may be available from the dealer manager or participating broker-dealers. Participation in the DRP will begin with the next Distribution payable after receipt of a Participant’s subscription agreement, enrollment form or other Company approved authorization form.
5.Purchase of Shares.
a.Shares will be purchased on the date that the Company makes a Distribution. Distributions will be paid upon the terms as authorized and declared by the Company’s board of directors. 
b.Until the Company announces an estimated net asset value per share, Participants will acquire Shares at a price per share equal to 95% of the then-current offering price for shares in the primary portion of the Company’s current offering (whether in the Company’s initial offering or a follow-on offering and ignoring any discounts that may be available to certain categories of purchasers) or 95% of the most recent offering price in a primary offering if there is no current offering. Upon the Company’s announcement, whether in a separate mailing to stockholders, a public filing with the Securities and Exchange Commission (the “SEC”) or otherwise, that the Company has established an estimated net asset value per share, Participants will acquire the Shares at a price equal to 95% of the estimated net asset value per share, as estimated by the Company’s board of directors.
c.Participants in the DRP may purchase fractional Shares so that 100% of the Distributions will be used to acquire Shares. However, a Participant will not be able to purchase Shares under the 

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DRP to the extent such purchase would cause it to exceed limits set forth in the Company’s charter, as amended.
6.Taxation of Distributions. The reinvestment of Distributions in the DRP does not relieve Participants of any taxes that may be payable as a result of those Distributions and their reinvestment pursuant to the terms of this DRP.
7.Share Certificates. The Shares issuable under the DRP shall be uncertificated until the board of directors determines otherwise.
8.Voting of DRP Shares. In connection with any matter requiring the vote of the Company’s stockholders, each Participant will be entitled to vote all Shares, including fractional Shares, acquired by the Participant through the DRP.
9.Reports. Within 90 days after the end of the calendar year, the Company shall provide each Participant with (i) an individualized report on the Participant’s investment, including the purchase date(s), purchase price and number of shares owned, as well as the amount of Distributions received during the prior year; and (ii) all material information regarding the DRP and the effect of reinvesting distributions, including the tax consequences thereof. The Company shall provide such information reasonably requested by the dealer manager or a participating broker-dealer, in order for the dealer manager or participating broker-dealer to meet its obligations to deliver written notification to Participants of the information required by Rule 10b-10(b) promulgated under the Securities Exchange Act of 1934.
		
	10.
	Termination by Participant. A Participant may terminate participation in the DRP at any time by delivering to the Company a written notice. To be effective for any Distribution, such notice must be received by the Company at least four business days prior to the payment of the Distribution. Notwithstanding the preceding sentence, if the Company announces, whether in a mailing to stockholders, a public filing with the SEC or otherwise, a new purchase price for Shares under the DRP, then a Participant shall have no less than two business days after the date of such announcement to notify the Company in writing of Participant’s termination of participation in the DRP and Participant’s termination will be effective for the next date Shares are purchased under the DRP. Any transfer of shares by a Participant will terminate participation in the DRP with respect to the transferred shares. Upon termination of DRP participation, Distributions will be distributed to the stockholder in cash.

11.Amendment or Termination of DRP by the Company. The Company may amend or terminate the DRP for any reason at any time upon ten days’ notice to the Participants. The Company may provide notice by including such information (a) in a Current Report on Form 8-K or in its annual or quarterly reports, all publicly filed with the Securities and Exchange Commission, or (b) in a separate mailing to Participants.
12.Liability of the Company. The Company shall not be liable for any act done in good faith, or for any good faith omission to act.
13.Governing Law. The DRP shall be governed by the laws of the State of Maryland.

2Exhibit

Exhibit 4.5
ESCROW AGREEMENT

THIS ESCROW AGREEMENT (this “Agreement”) is made and entered into as of this 22 day of January, 2016 by and among KBS Capital Markets Group, LLC, a California limited liability company (the “Dealer Manager”), KBS Strategic Opportunity REIT II, Inc., a Maryland corporation (the “Company”), and UMB Bank, N.A., as escrow agent, a national banking association organized and existing under the laws of the United States of America (the “Escrow Agent”).

RECITALS

WHEREAS, the Company proposes to add a class of common stock referred to as Class T shares (the “Class T Shares”) to its ongoing best-efforts public offering (the “Offering”) of up to $1.0 billion of a single class of common stock, to be designated Class A shares of common stock, currently registered pursuant to the Company’s Registration Statement on Form S-11 (File No.  333-192331), as amended from time to time (the “Offering Document”).  

WHEREAS, the Dealer Manager has been engaged by the Company to offer and sell the Class A shares and will be engaged to offer and sell the Class T Shares, both on a best efforts basis through a network of participating broker-dealers (the “Dealers”).
WHEREAS, the Dealer Manager and the Company desire to establish an escrow account (the “Escrow Account”) as further described herein, in which funds received from Benefit Plan Investors (as defined below) for the purchase of Class T Shares will be deposited and the Company desires that the Escrow Agent act as escrow agent to the Escrow Account and Escrow Agent is willing to act in such capacity.  
WHEREAS, in order to accept subscriptions for the purchase of Class T Shares from Benefit Plan Investors, the Company needs to satisfy the publicly-offered securities exception available pursuant to certain provisions of the Plan Assets Regulation (as such term is defined in the Offering Document);
WHEREAS, to ensure that it can satisfy the publicly-offered securities exception, deposits received for the purchase of Class T Shares from a subscriber that designates one of the following account types in its subscription agreement (a “Benefit Plan Investor”) will initially be held in the Escrow Account until the conditions of Section 2 have been met:  Pension Plan, Profit Sharing Plan, KEOGH Plan, 401K, Traditional (Individual) Individual Retirement Account (“IRA”), Simple IRA, SEP IRA, ROTH IRA, or Beneficial IRA as Beneficiary.
WHEREAS, the Escrow Agent has engaged DST Systems (the “Processing Agent”), to examine for “good order” subscriptions and to act as record keeper, maintaining on behalf of the Escrow Agent the ownership records for the Escrow Account.  In so acting, Processing Agent shall be acting solely in the capacity of agent for the Escrow Agent and not in any capacity on behalf of the Company or the Dealer Manager.  

WHEREAS, in order for a Benefit Plan Investor to subscribe for Class T Shares during the Escrow Period (as defined below), a Benefit Plan Investor must deliver the full amount of the

purchase price for the Class T Shares: (i) by check made payable to the order of “UMB Bank, N.A., as Escrow Agent for KBS Strategic Opportunity REIT II, Inc.,” in U.S. dollars; or (ii) by draft or wire transfer of immediately available funds in U.S. dollars, made payable as provided in Section 10(b) (collectively, the “Payment Instruments”).

AGREEMENT

NOW, THEREFORE, the Dealer Manager, the Company and the Escrow Agent agree to the terms of this Agreement as follows: 
1.Establishment of Escrow Account; Escrow Period.  On or prior to the commencement of the offer of Class T Shares pursuant to the Offering, the Company shall establish the Escrow Account with the Escrow Agent, which shall be entitled “UMB Bank, N.A., as Escrow Agent for KBS Strategic Opportunity REIT II, Inc.”  This Agreement shall be effective on the date on which the Registration Statement filing pursuant to which the Class T Share is added to the Offering is declared effective by the Securities and Exchange Commission.  The “Escrow Period” shall commence upon the effectiveness of this Agreement and shall continue until the earlier of: (a) the date upon which the Escrow Agent receives confirmation from the Company and the Dealer Manager that the Company has received subscriptions for the Class T Shares which would result in ownership of the Class T Shares by 100 or more persons who are independent of the Company and one another (the “Ownership Condition”); or (b) the termination of the offer of the Class T Shares pursuant to the Offering by the Company prior to the satisfaction of the Ownership Condition.
2.Operation of the Escrow.  
(a)Deposits in the Escrow Account.  During the Escrow Period, Benefit Plan Investors subscribing to purchase Class T Shares will be instructed by the Company, the Dealer Manager and the broker dealers or registered investment advisors to make Payment Instruments for subscriptions payable to the order of “UMB Bank, N.A., as Escrow Agent for KBS Strategic Opportunity REIT II, Inc.”  Completed subscription agreements and Payment Instruments for the aggregate purchase price for the Class T Shares shall be remitted by the broker dealers or registered investment advisors, as applicable, on behalf of Benefit Plan Investors subscribing to purchase the Class T Shares directly to the Escrow Agent as provided in Section 10(b) by the end of the next business day following receipt of any such Payment Instruments or, if final internal supervisory review is conducted at a different location, by the end of the next business day following receipt of any such Payment Instruments by the office conducting final internal supervisory review.  Deposits shall be held in the Escrow Account until such funds are disbursed in accordance with Section 2.  Prior to disbursement of the funds deposited in the Escrow Account, upon receipt of the Payment Instruments, Escrow Agent shall fax or scan a listing of the Benefit Plan Investor name and aggregate purchase price to Processing Agent, together with all other subscription documents sent with the Payment Instruments.  Prior to disbursement of the funds deposited 

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in the Escrow Account, such funds shall not be subject to claims by creditors of the Company or any of its affiliates.  If any of the Payment Instruments are returned to the Escrow Agent for nonpayment prior to receipt of the Break Escrow Affidavit (as described below), the Escrow Agent shall promptly notify the Processing Agent and the Company in writing via mail, email or facsimile of such nonpayment, and the Escrow Agent is authorized to debit the Escrow Account, as applicable in the amount of such returned payment and the Processing Agent shall delete the appropriate account from the records maintained by the Processing Agent.  Within 30 days from the date of receipt of each subscription from Benefit Plan Investors for the purchase of Class T Shares, the Company will determine whether the subscription is to be accepted or rejected in whole or in part.  Within 10 business days of receipt by the Escrow Agent of written notice from the Company, or as soon thereafter as practicable, that a subscription has been rejected, the Escrow Agent shall transfer by check or wire the funds and all interest, if any, earned thereon, of any Benefit Plan Investors whose subscription for the purchase of Class T Shares has been rejected since the commencement of the offer of the Class T Shares pursuant to the Offering, provided that the Escrow Agent shall note return such Benefit Plan Investor’s funds unless it has received a fully complete Form W-9, or an appropriate substitute thereto, executed by the Benefit Plan Investor.  The Processing Agent will maintain a written account of each subscription, which account shall set forth, among other things, the following information: (i) the Benefit Plan Investor’s name and address; (ii) the Benefit Plan Investor’s social security number; (iii) the number of Class T Shares to be purchased by such Benefit Plan Investor based on the purchase price of the Class T Shares in effect on the date the Processing Agent confirms that the subscription was received in good order and the Company determined to accept the subscription; and (iv) the aggregate amount paid by such Benefit Plan Investor for such Class T Shares.  During the Escrow Period neither the Company nor the Dealer Manager will be entitled to any principal funds received into the Escrow Account.  
(b)Distribution of the Escrowed Funds.  If at any time on or prior to the termination of the offer of Class T Shares pursuant to the Offering, the Ownership Condition has been satisfied, then upon the happening of such event, the funds in the Escrow Account shall remain in the Escrow Account until the Escrow Agent receives written direction provided by the Company and the Dealer Manager instructing the Escrow Agent to deliver the principal amount of such escrowed funds as the Company shall direct.  The Escrow Agent shall not, however, disburse the funds of a Benefit Plan Investor, the subscription of which has been rejected or rescinded, if the Escrow Agent has been notified by the Company of such rejection or rescission, or for which the Processing Agent has not confirmed may be accepted by the Company.  An affidavit or certification from an officer of the Company and an officer of the Dealer Manager to the Escrow Agent and Processing Agent stating that the Ownership Condition has been timely satisfied, shall constitute sufficient evidence for the purpose of this Agreement that such event has occurred (the “Break Escrow Affidavit”).  The Break 

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Escrow Affidavit shall indicate: (i) the date on which the Ownership Condition was satisfied; and (ii) the number of holders of the Class T Shares who are independent of the Company and each other as of such date.  Thereafter, the Escrow Agent shall distribute directly to the Benefit Plan Investors any interest earned on such Benefit Plan Investors’ subscription payments while such payments were held in the Escrow Account, provided that the Escrow Agent shall not distribute any interest to a Benefit Plan Investor unless it has received a fully complete Form W-9, or an appropriate substitute thereto, executed by the Benefit Plan Investor.  
(c)Return of Escrowed Funds.  If the Escrow Agent has not received a Break Escrow Affidavit on or prior to the termination of the offer of Class T Shares pursuant to the Offering by the Company, the Escrow Agent shall promptly create and dispatch checks and wires drawn on the Escrow Account to return the principal amount of the funds in the Escrow Account, together with any interest thereon, without deduction for fees, penalties or expenses, to the respective Benefit Plan Investor s, and the Escrow Agent shall notify the Company and the Dealer Manager of its distribution of the funds, provided that the Escrow Agent shall not return such Benefit Plan Investor’s funds unless it has received a fully complete Form W-9, or an appropriate substitute thereto, executed by the Benefit Plan Investor.  The subscription payments returned to each Benefit Plan Investor shall be free and clear of any and all claims of the Company or any of its creditors.
3.Escrowed Funds.  
(a)    Upon receipt of funds from Benefit Plan Investors subscribing to purchase Class T Shares pursuant to the Offering, the Escrow Agent shall hold such funds in escrow pursuant to the terms of this Agreement.  All such funds held in the Escrow Account shall be invested and reinvested in UMB Money Market Special, a bank money market account permitted under Rule 15c2-4 of the Securities Exchange Act of 1934, as amended.  All funds in the Escrow Account shall at all times be placed in interest-bearing accounts.
(b)    The Escrow Agent shall be entitled to sell or redeem any such investment as necessary to make any disbursements required under this Agreement and shall not be liable or responsible for any loss resulting from any such sale or redemption.
(c)    Income, if any, resulting from the investment of the funds received from Benefit Plan Investors subscribing to purchase Class T Shares pursuant to the Offering shall be disbursed according to this Agreement.
(d)    The Escrow Agent shall provide to the Company monthly statements (or more frequently as reasonably requested by the Company) on the account balance of the Escrow Account and the activity in the account since the last report.
4.Duties of the Escrow Agent.  The Escrow Agent shall have no duties or responsibilities other than those expressly set forth in this Agreement, and no implied duties or obligations shall be read 

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into this Agreement against the Escrow Agent.  The Escrow Agent is not a party to, or bound by, any other agreement among the other parties hereto, and the Escrow Agent’s duties shall be determined solely by reference to this Agreement.  The Escrow Agent shall have no duty to enforce any obligation of any person, other than as provided herein.  The Escrow Agent shall be under no liability to anyone by reason of any failure on the part of any party hereto or any maker, endorser or other signatory of any document or any other person to perform such person’s obligations under any such document.  
5.Liability of the Escrow Agent and the Processing Agent; Indemnification.
(a)    The Escrow Agent acts hereunder as a depository only.  The Escrow Agent is not responsible or liable in any manner for the sufficiency, correctness, genuineness or validity of this Escrow Agreement or with respect to the form of execution of the same.  Each of the Escrow Agent and the Processing Agent shall not be liable for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith, and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent or the Processing Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent or the Processing Agent to be genuine and to be signed or presented by the proper person(s).  Each of the Escrow Agent and the Processing Agent shall not be held liable for any error in judgment made in good faith by an officer or employee of either unless it shall be proved that the Escrow Agent or the Processing Agent, as appropriate, was grossly negligent or reckless in ascertaining the pertinent facts or acted intentionally in bad faith.  The Escrow Agent shall not be bound by any notice of demand, or any waiver, modification, termination or rescission of this Agreement or any of the terms hereof, unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall give its prior written consent thereto.
(b)    Either of the Escrow Agent and the Processing Agent may consult legal counsel and shall exercise reasonable care in the selection of such counsel, in the event of any dispute or question as to the construction of any provisions hereof or its duties hereunder, and it shall incur no liability and shall be fully protected in acting in accordance with the reasonable opinion or instructions of such counsel.
(c)    Each of the Escrow Agent and the Processing Agent shall not be responsible, may conclusively rely upon and shall be protected, indemnified and held harmless by the Company, for the sufficiency or accuracy of the form of, or the execution, validity, value or genuineness of any document or property received, held or delivered by it hereunder, or of the signature or endorsement thereon, or for any description therein; nor shall the Escrow 

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Agent or the Processing Agent be responsible or liable in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or deliver any document, property or this Agreement.
(d)    In the event that either the Escrow Agent or the Processing Agent shall become involved in any arbitration or litigation relating to the funds received from Benefit Plan Investor subscribing to purchase Class T Shares in the Offering, each is authorized to comply with any decision reached through such arbitration or litigation.
(e)    The Company hereby agrees to indemnify both the Escrow Agent and the Processing Agent for, and to hold it harmless against, any loss, liability or expense incurred in connection herewith without gross negligence, recklessness or willful misconduct on the part of either of the Escrow Agent or the Processing Agent, including without limitation legal or other fees arising out of or in connection with its entering into this Agreement and carrying out its duties hereunder, including without limitation the costs and expenses of defending itself against any claim of liability in the premises or any action for interpleader.  Neither the Escrow Agent, nor the Processing Agent, shall be under any obligation to institute or defend any action, suit, or legal proceeding in connection herewith, unless first indemnified and held harmless to its satisfaction in accordance with the foregoing, except that neither shall be indemnified against any loss, liability or expense arising out of its own gross negligence, recklessness or willful misconduct.  Such indemnity shall survive the termination or discharge of this Agreement or resignation of the Escrow Agent.
6.The Escrow Agent’s Fee.  Escrow Agent shall be entitled to fees and expenses for its regular services as Escrow Agent as set forth in Exhibit A.  Additionally, Escrow Agent is entitled to reasonable fees for extraordinary services and reimbursement of any reasonable out of pocket and extraordinary costs and expenses related to its obligations as Escrow Agent under this Agreement, including, but not limited to, reasonable attorneys’ fees.  All of the Escrow Agent’s compensation, costs and expenses shall be paid by the Company.
7.Security Interests.  No party to this Escrow Agreement shall grant a security interest in any monies or other property deposited with the Escrow Agent under this Escrow Agreement, or otherwise create a lien, encumbrance or other claim against such monies or borrow against the same.
8.Dispute.  In the event of any disagreement between the undersigned or the person or persons named in instructions given pursuant to this Agreement, or any other person, resulting in adverse claims and demands being made in connection with or for any papers, money or property involved herein, or affected hereby, the Escrow Agent shall be entitled to refuse to comply with any demand or claim, as long as such disagreement shall continue, and in so refusing to make any delivery or other disposition of any money, papers or property involved or affected hereby, the Escrow Agent shall not be or become liable to the undersigned or to any person named in such instructions for its refusal to comply with such conflicting or adverse demands, and the Escrow Agent shall be entitled 

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to refuse and refrain to act until: (a) the rights of the adverse claimants shall have been fully and finally adjudicated in a court of competent jurisdiction over the parties and money, papers and property involved herein or affected hereby; or (b) all differences shall have been adjusted by agreement and the Escrow Agent shall have been notified thereof in writing, signed by all the interested parties.
9.Resignation of Escrow Agent.  Escrow Agent may resign or be removed, at any time, for any reason, by written notice of its resignation or removal to the proper parties at their respective addresses as set forth herein, at least 60 days before the date specified for such resignation or removal to take effect; upon the effective date of such resignation or removal: 
(a)    all cash and other payments and all other property then held by the Escrow Agent hereunder shall be delivered by it to such successor escrow agent as may be designated in writing by the Company, whereupon the Escrow Agent’s obligations hereunder shall cease and terminate; or
(b)    if no such successor escrow agent has been designated by such date, all obligations of the Escrow Agent hereunder shall, nevertheless, cease and terminate, and the Escrow Agent’s sole responsibility thereafter shall be to keep all property then held by it and to deliver the same to a person designated in writing by the Company or in accordance with the directions of a final order or judgment of a court of competent jurisdiction; and
(c)    further, if no such successor escrow agent has been designated by such date, the Escrow Agent may petition any court of competent jurisdiction for the appointment of a successor agent; further the Escrow Agent may pay into such court all monies and property deposited with Escrow Agent under this Agreement.  
10.Notices.  All notices, demands and requests required or permitted to be given under the provisions hereof must be in writing and shall be deemed to have been sufficiently given, upon receipt, if (i) personally delivered, (ii) sent by telecopy and confirmed by phone or (iii) mailed by registered or certified mail, with return receipt requested, delivered to the addresses set forth below, or to such other address as a party shall have designated by notice in writing to the other parties in the manner provided by this paragraph: 

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	(a) If to Company:
	 
	KBS Strategic Opportunity REIT II, Inc.

	 
	 
	800 Newport Center Drive, Suite 700

	 
	 
	Newport Beach, CA 92660

	 
	 
	Telephone: (949) 417-6500

	 
	 
	Facsimile: (949) 417-6520

	 
	 

	 
	 
	Company Wire Instructions:

	 
	 
	To be provided by the Company

	 
	 

	(b) If to the Escrow Agent:
	 
	UMB Bank, N.A.

	 
	 
	1010 Grand Blvd., 4th Floor

	 
	 
	Mail Stop: 1020409

	 
	 
	Kansas City, Missouri 64106

	 
	 
	Attention: Lara Stevens,

	 
	 
	Corporate Trust & Escrow Services

	 
	 
	Telephone: (816) 860-3017

	 
	 
	Facsimile: (816) 860-3029

	 
	 

	 
	 
	Escrow Agent Wiring Instructions:

	 
	 
	UMB Bank, N.A.

	 
	 
	ABA Routing Number: 101000695

	 
	 
	Account Number: To be provided by UMB Bank, N.A.

	 
	 
	Account Name: UMB Bank, N.A., as Escrow Agent for KBS Strategic Opportunity REIT II, Inc.

	 
	 

	 
	 
	Checks Payable Information:

	 
	 
	UMB Bank, N.A., as Escrow Agent for KBS Strategic Opportunity REIT II, Inc.

	 
	 
	Attention: Lara Stevens, Corporate Trust & Escrow Services
1010 Grand Boulevard, 4th Floor
M/S 1020409
Kansas City, Missouri 64106

	 
	 

	(c) If to Dealer Manager:
	 
	KBS Capital Markets Group, LLC

	 
	 
	800 Newport Center Drive, Suite 700

	 
	 
	Newport Beach, CA 92660

	 
	 
	Attention: Hans Henselman, Chief Compliance Officer

	 
	 
	Telephone: (949) 717-6247

	 
	 
	Facsimile: (949) 717-6201

11.Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Missouri without regard to the principles of conflicts of law.

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12.Binding Effect; Benefit.  This Agreement shall be binding upon and inure to the benefit of the permitted successors and assigns of the parties hereto.
13.Modification.  This Agreement may be amended, modified or terminated at any time by a writing executed by the Dealer Manager, the Company and the Escrow Agent.
14.Assignability.  This Agreement shall not be assigned by the Escrow Agent without the  Company’s prior written consent.
15.Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law.
16.Headings.  The section headings contained in this Agreement are inserted for convenience only, and shall not affect in any way, the meaning or interpretation of this Agreement.
17.Severability.  This Agreement constitutes the entire agreement among the parties and supersedes all prior and contemporaneous agreements and undertakings of the parties in connection herewith.  No failure or delay of the Escrow Agent in exercising any right, power or remedy may be, or may be deemed to be, a waiver thereof; nor may any single or partial exercise of any right, power or remedy preclude any other or further exercise of any right, power or remedy.  In the event that any one or more of the provisions contained in this Agreement, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement.
18.Earnings Allocation; Tax Matters; Patriot Act Compliance; OFAC Search Duties.  The Escrow Agent shall be responsible for all tax reporting under this Escrow Agreement.  The Company shall provide to Escrow Agent upon the execution of this Agreement any documentation requested and any information reasonably requested by the Escrow Agent to comply with the USA Patriot Act of 2001, as amended from time to time.  The Escrow Agent, or its agent, shall complete an OFAC search, in compliance with its policy and procedures, of each Payment Instrument and shall inform the Company if a Payment Instrument fails the OFAC search.
19.Miscellaneous.  This Agreement shall not be construed against the party preparing it, and shall be construed without regard to the identity of the person who drafted it or the party who caused it to be drafted and shall be construed as if all parties had jointly prepared this Agreement and it shall be deemed their joint work product, and each and every provision of this Agreement shall be construed as though all of the parties hereto participated equally in the drafting hereof; and any uncertainty or ambiguity shall not be interpreted against any one party.  As a result of the foregoing, any rule of construction that a document is to be construed against the drafting party shall not be applicable.

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20.Third Party Beneficiaries.  The Processing Agent shall be a third party beneficiary under this Agreement, entitled to enforce any rights, duties or obligations owed to it under this Agreement notwithstanding the terms of any other agreements between the Processing Agent and any Party hereto.
21.Termination of the Escrow Agreement.  This Agreement, except for Sections 6 and 10 hereof, which shall continue in effect, shall terminate upon written notice from the Company to the Escrow Agent.  Unless otherwise provided, final termination of this Agreement shall occur on the date that all funds held in the Escrow Account are disbursed either: (a) to the Company or to the Benefit Plan Investors and the Company has informed the Escrow Agent in writing to close the Escrow Account; or (b) to a successor escrow agent upon written instructions from the Company.
22. Relationship of Parties.  The Dealer Manager and the Company are unaffiliated with the Escrow Agent, and this Agreement does not create any partnership or joint venture among either the Dealer Manager or the Company and the Escrow Agent.

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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by their duly authorized representatives as of the date first written hereinabove.
 
DEALER MANAGER:

KBS CAPITAL MARKETS GROUP, LLC

	
		
	By:
	/s/ Hans Henselman

Name: Hans Henselman
Title: Chief Operating Officer

COMPANY:

KBS STRATEGIC OPPORTUNITY REIT II, INC.

	
		
	By:
	/s/ Jeffrey K. Waldvogel

Name: Jeffrey K. Waldvogel
Title: Chief Financial Officer

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ESCROW AGENT:

UMB BANK, N.A.

	
		
	By:
	/s/ Lara L. Stevens

Name: Lara L. Stevens
Title: Vice President

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EXHIBIT A
ESCROW FEES AND EXPENSES [KBS TO REVIEW]
 
	
					
	 
	 
	 
	 
	 

	Acceptance Fee
	 
	 
	 
	 

	Review escrow agreement and establish account
	 
	$
	3,000
	 

	DST Agency Engagement
	 
	$
	250
	 

	 
	 

	Annual Fee
	 
	 
	 
	 

	Annual Escrow Agent
	 
	$
	2,500
	 

	 
	 

	Transaction Fees
	 
	 
	 
	 

	(a) Per outgoing wire transfer
	 
	$
	15.00
	 

	(b) IRS Tax Reporting per Form 1099 (Int., B or Misc.)
	 
	$
	10.00
	 

	(c) Per Overnight Delivery/Mailing
	 
	$
	16.50
	 

	(d) Web Exchange Access per month
	 
	$
	15.00
	 

	(e) Daily Recon File to Transfer Agent per Business Day
	 
	$
	2.50
	 

	(f) Daily Wire Ripping to Transfer Agent per Business Day
	 
	$
	10.00
	 

Fees specified are for the regular, routine services contemplated by the Escrow Agreement, and any additional or extraordinary services, including, but not limited to disbursements involving a dispute or arbitration, or administration while a dispute, controversy or adverse claim is in existence, will be charged based upon time required at the then standard hourly rate. In addition to the specified fees, all expenses related to the administration of the Escrow Agreement (other than normal overhead expenses of the regular staff) such as, but not limited to, travel, postage, shipping, courier, telephone, facsimile, supplies, legal fees, accounting fees, etc., will be reimbursable.  

Acceptance fee and first year annual fee will be payable at the initiation of the escrow.  Thereafter, transaction fees will be billed quarterly in arrears and the annual fees will be billed annually in advance.  Other fees and expenses will be billed as incurred.

13

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