Document:

Escrow Agreement

 Exhibit 4.5 
  

ESCROW AGREEMENT 
  
 First Republic Trust Company 
 111 Pine Street, 4th Floor 
 San Francisco, CA 94111 
  
 Re: KBS REAL ESTATE INVESTMENT TRUST, INC. 
  
 Ladies and Gentlemen: 
  
 KBS Real Estate Investment Trust, Inc., a Maryland corporation (the “Company”), will issue in a public offering (the “Offering”) its
common stock (the “Stock”) 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 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 from the purchase of Stock in the Offering until such time as: (i) in the case of subscriptions received from all
persons not affiliated with the Company or its advisor, KBS Capital Advisors LLC (“Non-Affiliates”), other than from Pennsylvania Subscribers (as defined below), the Company has received subscriptions for Stock resulting in total
minimum capital raised of $2,500,000 (the “Required Capital”); and (ii) in the case of subscriptions received from residents of Pennsylvania (“Pennsylvania Subscribers”), the Company has received subscriptions
for Stock from Non-Affiliates resulting in total minimum capital raised of $66,700,000 (the “Pennsylvania Required Capital”). 
  
 Based 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 the subscriptions for the Stock, on the terms and conditions hereinafter set forth:

  
 1. Until such time as the Company has received subscriptions for Stock
resulting in total minimum capital raised equal to the Required Capital and such funds are disbursed in accordance with paragraph 3 hereof, persons subscribing to purchase the Stock 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, INC.” Any checks received made payable to a party other than the Escrow Agent
shall be returned to the Dealer Manager or soliciting dealer, as applicable, who submitted the check. 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: (a) an electronic file in a compatible format containing the subscriber’s name, address, tax identification number or social security number, number of shares purchased and purchase price remitted, (b) a statement confirming
the receipt from such subscriber of a Form W-9 (as defined below), and (c) the check from such subscriber, for deposit by you into an interest-bearing deposit account entitled “ESCROW ACCOUNT FOR THE BENEFIT OF SUBSCRIBERS FOR 

 
COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST, INC.” (the “Escrow Account”), which deposit shall occur within one business day after
you receive such materials. Checks received from Pennsylvania Subscribers (as identified as such by the Dealer Manager) shall be accounted for separately in a sub-account entitled “ESCROW ACCOUNT FOR THE BENEFIT OF PENNSYLVANIA SUBSCRIBERS FOR
COMMON STOCK OF KBS REAL ESTATE INVESTMENT TRUST, INC.” (the “Pennsylvania Escrow Account”), until such Pennsylvania Escrow Account has closed pursuant to paragraph 3 hereof. 
  
 2. You agree to promptly process for collection the checks upon deposit into the Escrow
Account or the Pennsylvania Escrow Account, as applicable. You will hold the deposited funds in the Escrow Account or the Pennsylvania Escrow Account until such funds are disbursed in accordance with paragraph 3 hereof. If any of the checks are
returned to you for nonpayment prior to receipt by you of the Required Capital or, in connection with subscriptions from Pennsylvania Subscribers, the Pennsylvania 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 Pennsylvania 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 subparagraphs 3(b)—3(e) below, once collected funds in the Escrow Account are an amount equal to or greater than the Required Capital, and upon receiving written instructions from the Company for disbursement of the funds, you
shall disburse to the Company, by check or wire transfer, all funds then in the Escrow Account, including any interest income earned on subscription proceeds deposited in the Escrow Account. For purposes of this Agreement, the term “collected
funds” shall mean all funds received by the Escrow Agent that have cleared normal banking channels and are in the form of cash. Following such disbursement, the Escrow Account shall close and thereafter you shall forward directly to the Company
any checks received by you from subscribers. 
  
 (ii) Regardless
of any release of funds from the Escrow Account, the Dealer Manager shall continue to forward, or cause to be forwarded, checks received from Pennsylvania Subscribers to you for deposit into the Pennsylvania Escrow Account until such time as the
Company notifies you in writing that total subscription proceeds from Non-Affiliates (including the amount then in the Pennsylvania Escrow Account) equal or exceed the Pennsylvania Required Capital. Within five days of receiving such notice and
instructions from the Company for the disbursement of the funds, you shall disburse to the Company, by check or wire transfer, all funds then in the Pennsylvania Escrow Account, including any interest income earned on subscription proceeds deposited
in the Pennsylvania Escrow Account. Following such disbursement, you shall close the Pennsylvania Escrow Account, and thereafter you shall forward directly to the Company any checks received by you from Pennsylvania Subscribers. 
  
 (b) (i) The “Expiration Date” shall be 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 Expiration Date as soon as possible after it is determined.

  
 (ii) If, at the close of business on the date that is 30
business days prior to the Expiration 

 
Date, you are not in receipt of evidence of subscriptions and checks for the purchase of Stock providing for total purchase proceeds from Non-Affiliates that
equal or exceed the 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 IRS Form W-9, which may be a
substitute executed Form W-9 as contained in the subscription agreement provided such substitute form is in conformity with all applicable IRS regulations, (a “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. 
  
 (iii) If, at the close of business on the date that is 6 business days prior
to the Expiration Date, you are not in receipt of evidence of subscriptions and checks for the purchase of Stock providing for total purchase proceeds from Non-Affiliates that equal or exceed the 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 paragraph 8. 
  
 (iv) If,
at the close of business on the Expiration Date, you are not in receipt of evidence of subscriptions accepted on or before such date and checks dated not later than that date for the purchase of Stock providing for total purchase proceeds from
Non-Affiliates that equal or exceed the Required Capital, you shall promptly so notify the Company and the Dealer Manager. Promptly following the Expiration Date, and in any event no later than the next business day after the Expiration Date, you
shall return directly to each subscriber by your check the collected funds deposited in the Escrow Account and the Pennsylvania Escrow Account on behalf of such subscriber (unless earlier disbursed in accordance with paragraph 3(c) or 3(e) 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 paragraph 3(b)(iii) 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) Notwithstanding subparagraphs 3(a) and 3(b) above, if you are not in receipt of evidence
of subscriptions accepted on or before the close of business on such date that is 120 days after the date the Company first accepts a subscription from a Pennsylvania Subscriber (such period, the “Initial Escrow Period”), and checks
dated not later than that date, for the purchase of Stock providing for total purchase proceeds from Non-Affiliates that equal or exceed the Pennsylvania 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 Pennsylvania Subscribers interest income earned on the subscription proceeds in the Pennsylvania Escrow Account, which amounts shall be
calculated by the Dealer Manager in accordance with paragraph 8, and (ii) a Form W-9 for each Pennsylvania Subscriber. The Company shall send to each Pennsylvania 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 Pennsylvania 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 Pennsylvania Subscriber the collected funds deposited in the Pennsylvania Escrow Account on behalf of such Pennsylvania 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 Pennsylvania Subscriber from the Dealer Manager, you shall thereupon remit an amount to such Pennsylvania Subscriber in accordance with the provisions hereof, withholding twenty-eight percent (28%) of any
interest income earned on subscription proceeds attributable to such Pennsylvania Subscriber. However, you shall not be required to remit such payments until you have collected funds represented by such payments. 
  
 (d) The subscription funds of Pennsylvania Subscribers who do not request the return of their
subscription funds within the Request Period shall remain in the Pennsylvania Escrow Account for successive 120-day escrow periods (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 subparagraph 3(c) above with respect to the Initial Escrow Period for each Successive Escrow Period until the occurrence of the
earliest of (i) 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, (ii) the receipt
and acceptance by the Company of subscriptions for the purchase of Stock with total purchase proceeds from Non-Affiliates that equal or exceed the Pennsylvania Required Capital and the disbursement of the Pennsylvania Escrow Account on the terms
specified herein, or (iii) all funds held in the Pennsylvania Escrow Account having been returned to the Pennsylvania Subscribers in accordance with the provisions hereof. 
  
 (e) If the Company rejects 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 cleared such funds. If you have not yet submitted a rejected subscriber’s check for collection, you shall promptly remit the subscriber’s check directly to the
subscriber. 
  
 4. You will provide electronic statements of the account with
respect to the Escrow Account and the Pennsylvania Escrow Account in accordance with your practice to the parties listed in paragraph 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 Online.
Account information via Trust Online 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 Pennsylvania Escrow Account, you will send the parties a username, password and instructions for accessing Trust Online. Although precaution has been taken to ensure information is transmitted safely and securely, the Escrow 

 
Agent does not guarantee or warrant the privacy or security of information on the Internet. 
  
 5. All funds in the Escrow Account and the Pennsylvania Escrow Account, until disbursed to the Company in accordance with paragraph 3
hereof, are to be held for the benefit of the shareholders of the Company 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 Pennsylvania Escrow Account, as applicable, in accordance with the provisions of paragraph 3 hereof, you shall invest all of the funds deposited in such accounts in “Short-Term Investments” (as
defined below) in compliance with SEC Rule 15c2-4 and you are further authorized and you agree to reinvest all earnings and interest derived therefrom in the Short-Term Investments specified below. In the absence of written direction from the
Company, funds deposited in the Escrow Account and the Pennsylvania Escrow Account, and any earnings and interest derived therefrom, shall be deposited in the First Republic Bank Business Money Market account. In the event that checks are returned
to you for nonpayment, you are authorized to debit the Escrow Account in accordance with paragraph 2 hereof. 
  
 “Short-Term Investments” include obligations of, or obligations guaranteed by, the United States government or bank money market accounts or certificates of deposit of national or state banks that
have deposits insured by the Federal Deposit Insurance Corporation (including certificates of deposit of any bank acting as a depository or custodian for any such funds, including, without limitation, such certificates or instruments of American
International Bank) that mature on or before the termination of the Offering, unless such instrument cannot be readily sold or otherwise disposed of for cash by the termination of the Offering without any dissipation of the Offering proceeds
invested. 
  
 The following securities are not
permissible 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. 
  
 7. All disbursements from the Escrow Account and the Pennsylvania
Escrow Account, except for disbursements under the provisions of paragraph 3 hereof, shall be made by you only pursuant to this paragraph 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 paragraph, and shall disburse such funds in compliance with the disbursement instructions from the Company. 
  
 8. If the Offering terminates prior to receipt of the Required Capital or one or more of the Pennsylvania Subscribers elects to have his or her subscription returned in
accordance with paragraph 3, interest income earned on subscription proceeds deposited in the Escrow Account (the “Escrow Income”) and the Pennsylvania Escrow Account (the “Pennsylvania Escrow Income”), as
applicable, shall be calculated by the Dealer Manager in accordance with this paragraph 8, and shall be remitted to subscribers by you in accordance with paragraph 3 and without any deductions for escrow expenses. The Dealer Manager shall calculate
each subscriber’s pro rata portion of Escrow Income as follows: the total amount of Escrow Income (or Pennsylvania Escrow Income, as applicable) shall be multiplied by a fraction, (i) the numerator of which is determined by multiplying the
number of shares of Stock purchased by said subscriber times the number of days said subscriber’s proceeds are held in the Escrow Account (or the Pennsylvania Escrow Account, as applicable) prior to the date of disbursement, and (ii) the
denominator of which is the total of the numerators for all such subscribers in such account. 
  
 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 escrow 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. 
  
 If to you: 
  
 First Republic Trust
Company 
 111 Pine Street, 4th Floor 
 San Francisco, CA 94111 
 Attn: Lawrence Wong 
 Direct Phone: (415) 288-7530 
 Fax: (415) 288-7500 
 E-mail: lwong@firstrepublic.com 
  
 If to the Company: 
  
 KBS Real Estate Investment Trust, 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 Stock or the Company, nor shall they use your name in any manner whatsoever in connection with the
offer or sale of the Stock other than by acknowledgment that you have agreed to serve as Escrow Agent for the limited purposes herein set forth. 
  
 17. This Agreement and any amendment hereto may be executed by the parties hereto in one or more counterparts, each of which shall be deemed to be an original.

  
 18. Except as otherwise required for subscription funds received from
Pennsylvania Subscribers, in the event that you receive checks after the Required Capital has been received and the proceeds of the Escrow Account have been distributed to the Company, you are hereby authorized to deposit such checks within one
business day to any deposit account as directed by the Company. The application of such funds into a deposit account or forwarding such funds directly to the Company, in either case as directed by the Company, shall be a full acquittance to you 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. 
  
 20. The indemnification provisions set forth herein shall
survive the termination of this Agreement. 
  
 21. Unless otherwise provided in
this Agreement, final termination of this Agreement shall occur on the date that all funds held in the Escrow Account and the Pennsylvania Escrow Account are distributed either (a) to the Company or to subscribers pursuant to paragraph 3 hereof
or (b) to a successor escrow agent upon written instructions from the Company. 
  
 22. You have no responsibility for accepting, rejecting or approving subscriptions. 
  
 23. This Agreement shall not be modified, revoked, released or terminated unless reduced to writing and signed by all parties hereto, subject to the following paragraph. 
  
 If, at any time, any attempt is made to modify 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, and your only remaining obligation shall be to perform your
duties hereunder in accordance with the terms of the Agreement. 
  
 24. You may
resign at any time from your obligations under this Escrow Agreement by providing written notice to the Company. Such resignation shall be effective on the date specified in such notice, which shall be not less than 30 days after such written notice
has been given. You shall have no responsibility for the appointment of a successor escrow agent. 
  
 25. You may be removed by the Company by written notice to you effective on the date specified in such written notice. Your removal as the Escrow Agent shall not deprive you of compensation earned prior to such
removal. 
  
 26. In the event of your removal or resignation as the Escrow Agent,
the Company shall appoint a successor which, upon its acceptance in writing of such appointment delivered to you and the Company, shall be vested with all the rights, powers and duties of the Escrow Agent under this Agreement, and you shall be
released and discharged from all further liability in connection with this Agreement. If the Company fails to appoint a successor Escrow Agent within 30 days after your removal or resignation, you may do one of the following: 
  
 (i) take no further action until directed by the Company; or 
 (ii) tender into the registry or custody of any court of competent jurisdiction all money or property in your hands under this Agreement, together with such legal
pleadings as you deem appropriate. 
  
 You shall transfer, assign and deliver to
your successor all of the property then held by you under this Agreement. You may also transfer to the successor escrow agent copies of your records as they relate to this Agreement as may be requested by the successor escrow agent, except as to
those records that you have or may assert a claim of privilege. The successor escrow agent shall not be liable or responsible for anything done or omitted in the administration of the escrow accounts pursuant to this Agreement prior to the date it
shall have become Escrow Agent, nor be required to audit or otherwise inquire into or take any action concerning the acts of any retiring Escrow Agent. 
  
 27. The obligations of the parties hereto are conditioned upon receipt by the Dealer Manager of approval from the National Association of Securities Dealers (the
“NASD”) of the Dealer Manager’s Application for Approval of Change in Ownership, Control, or Business Operations made pursuant to NASD Rule 1017 (such approval, the “NASD Approval”). Prior to receipt by the Escrow Agent of
written notice of the NASD Approval, the Escrow Agent shall not be obligated to receive or deposit any check related to the offering. 
  
 [signatures on following page] 

 Agreed to as of the 15th day of November, 2005. 
  

			
	 KBS REAL ESTATE INVESTMENT TRUST, 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/ Mary Lago 

	 Name:
	 	 Mary Lago 

	 Title:
	 	Managing Director – Trust Sales

 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, 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, 111 Pine Street, 4th Floor, San
Francisco, CA 94111, Attn: Lawrence Wong. 
  
 I hereby terminate my prior
subscription to purchase shares of common stock of KBS Real Estate Investment Trust, Inc. and request the return of my subscription funds. I certify to KBS Real Estate Investment Trust, 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, Inc. 
  
 Escrow Agent Fee Schedule 
  

							
	 Annual Escrow Agent Fee
	 	 	  	$5,000	  	 
	
	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, Inc. in accordance with the provisions of Section 9 of the Escrow Agreement.Form of Employee and Independent Director Incentive Stock Plan

 Exhibit 10.2 
  
 KBS REAL ESTATE INVESTMENT TRUST, INC. 
 FORM OF EMPLOYEE AND INDEPENDENT DIRECTOR INCENTIVE STOCK PLAN 
  

	1.	Establishment, Purpose and Types of Awards 

  
 KBS Real Estate Investment Trust, Inc., a Maryland corporation (the “Company”), hereby establishes the KBS Real Estate Investment Trust,
Inc. Employee and Independent Director Incentive Stock Plan (the “Plan”). The purposes of the Plan are to promote the long-term growth and profitability of the Company by: 
  
 (a) furnishing incentives to individuals chosen to receive share-based
awards because the Company considers them capable of improving the Company’s operations and increasing its profits; 
  
 (b) encouraging selected persons to accept or continue employment with the Company or any Advisor or an Affiliate of the Company or the Advisor; and

  
 (c) increasing the interest of the Company’s independent
directors in the Company’s welfare through their participation in the growth in the value of the Company’s shares of common stock. 
  
 The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and nonstatutory stock options), stock
appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any combination of the foregoing. 
  

	2.	Definitions 

  
 Under this Plan, except where the context otherwise indicates, the following definitions apply: 
  
 (a) “Administrator” means the Board or the committee or
officer(s) appointed by the Board that have authority to administer the Plan as provided in Section 3 hereof. 
  
 (b) “Advisor” means the person or persons, if any, appointed, employed or contracted with by the Company from time to time and
responsible for directing or performing day-to-day business affairs or operations of the Company, including any person or persons to whom the Advisor subcontracts any of such functions. The initial Advisor is KBS Capital Advisors LLC. 
  
 (c) “Affiliate” means any person that controls, is
controlled by, or is under common control with another person. For this purpose, “control” shall be deemed to include ownership of 50% or more of the total combined voting power or value of al classes of stock or interests of an entity.

  
 (d) “Award” means any stock option, stock
appreciation right, stock award, phantom stock award, performance award, or other stock-based award. 
  
 (d) “Board” means the Board of Directors of the Company. 
  
 (e) “Change in Control” means: (i) the acquisition (other than from the Company) in one or more
transactions by any Person, as defined in this Section 2(e), of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (A) the then outstanding shares
of the securities of the Company, or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Company Voting Stock”); (ii) the closing of
a sale or other conveyance of all or substantially all of the assets of the Company; or (iii) the effective time of any merger, share exchange, consolidation, or other business combination involving the Company if immediately after such
transaction persons who hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving entity) are not persons who, immediately prior
to such transaction, held the Company Voting Stock; provided, however, that for purposes of any Award or subplan that constitutes a “nonqualified deferred compensation plan,” within the meaning of Code section 409A, the
Administrator, in 
  

 1 

 its discretion, may specify a different definition of Change in Control in order to comply with the provisions of Code
section 409A. 
  
 For purposes of this Section 2(e) only, a
“Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the Company and
by entities controlled by the Company or an underwriter of the Common Stock in a registered public offering. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. 
  
 (g) “Common Stock” means shares of common stock of the
Company, par value $0.01 per share. 
  
 (h) “Fair Market
Value” means, with respect to a share of the Company’s Common Stock for any purpose on a particular date, the value determined by the Administrator in good faith. However, if the Common Stock is registered under Section 12(b) or
12(g) of the Securities Exchange Act of 1934, as amended, and listed for trading on a national exchange or market, “Fair Market Value” means, as applicable, (i) either the closing price or the average of the high and low sale
price on the relevant date, as determined in the Administrator’s discretion, quoted on the New York Stock Exchange, the American Stock Exchange, or the Nasdaq National Market; (ii) the last sale price on the relevant date quoted on the
Nasdaq SmallCap Market; (iii) the average of the high bid and low asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau, Inc. or a comparable service as determined in the
Administrator’s discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the closing bid and asked prices on the relevant date furnished by a professional market maker for the Common Stock, or by such other
source, selected by the Administrator. If no public trading of the Common Stock occurs on the relevant date but the shares are so listed, then Fair Market Value shall be determined as of the next preceding date on which trading of the Common Stock
does occur. For all purposes under this Plan, the term “relevant date” as used in this Section 2(h) means either the date as of which Fair Market Value is to be determined or the next preceding date on which public trading of
the Common Stock occurs, as determined in the Administrator’s discretion. 
  
 (i) “Grant Agreement” means a written document memorializing the terms and conditions of an Award granted pursuant to the Plan, which document shall incorporate the terms of the Plan. 
  

	3.	Administration 

  
 (a) Administration of the Plan. The Plan shall be administered by the Board or by such committee or committees as may be appointed by the Board
from time to time. To the extent allowed by applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than Stock Awards) to other persons, and, to the extent of such authorization, such officer or
officers shall be the Administrator. 
  
 (b) Powers of the
Administrator. The Administrator shall have all the powers vested in it by the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such
Awards and establish programs for granting Awards. 
  
 The
Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to: (i) determine the eligible persons to whom, and the time or
times at which Awards shall be granted; (ii) determine the types of Awards to be granted; (iii) determine the number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations,
restrictions and conditions upon any such Award as the Administrator shall deem appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that,
except as provided in Section 6 or 7(d) of the Plan, any modification that would 
  

 2 

 materially adversely affect any outstanding Award shall not be made without the consent of the holder);
(vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award, including, but not limited
to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any grantee’s employment or other relationship with the Company; (vii) establish objectives and conditions, if any, for
earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any purpose, including but not limited to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with
the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans, and prescribe, amend and rescind rules and regulations relating to such sub-plans. 
  
 The Administrator shall have full power and authority, in its sole and
absolute discretion, to administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and interpret such rules, regulations, agreements,
guidelines and instruments for the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any
Award in the manner and to the extent the Administrator shall deem it desirable to carry it into effect. 
  
 (c) Non-Uniform Determinations. The Administrator’s determinations under the Plan (including without limitation, determinations of the persons
to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need not be uniform and may be made by the Administrator selectively among persons who receive,
or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated. 
  
 (d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision made
in good faith relating to the Plan or any Award thereunder. 
  
 (e) Indemnification. To the maximum extent permitted by law and by the Company’s charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan.

  
 (f) Effect of Administrator’s Decision. All
actions taken and decisions and determinations made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and
binding on all parties concerned, including but not limited to the Company, its stockholders, any participants in the Plan, and their respective successors in interest. 
  

	4.	Shares Available for the Plan; Maximum Awards 

  
 On any given date, the maximum number of shares of Common Stock with respect to which Awards may be made pursuant to the Plan shall be equal to the number
of shares of Common Stock which, when added to the number of shares of Common Stock subject to other Awards outstanding as of such date and the number of shares of Common Stock previously issued with respect to Awards granted under the Plan, shall
be equal to 5% of the Company’s outstanding shares of Common Stock on a fully diluted basis as of such date; provided, however, that such number of shares may not exceed 10,000,000 shares of Common Stock, subject to adjustments as provided in
Section 7(d) of the Plan; and provided further, that no more than an aggregate of 10,000,000 shares of Common Stock may be issued pursuant to incentive stock options intended to qualify under Code section 422. The Company shall reserve such
number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash
without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or
not such surrendered shares were acquired pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall 
  

 3 

 thereafter be available for further Awards under the Plan; provided, however, that any such shares that are surrendered
to or repurchased or withheld by the Company in connection with any Award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify under Code section 422. 

 
 Subject to adjustments as provided in Section 7(d) of the Plan, the
maximum number of shares of Common Stock subject to Awards of any combination that may be granted during any one fiscal year of the Company to any one individual under this Plan shall be limited to 1,000,000 shares; provided, however,
that such maximum number shall be 2,000,000 shares with respect to any individual during the first fiscal year that the individual is employed with the Company, the Advisor or an Affiliate or either. Such per-individual limit shall not be adjusted
to effect a restoration of shares of Common Stock with respect to which the related Award is terminated, surrendered or canceled. 
  

	5.	Participation 

  
 The Administrator, in its sole discretion, may grant Awards under the Plan to (a) employees of the Company, the Advisor, any Affiliate of the
Company or the Advisor, or any entity that provides services to the Company, (b) managers or directors of the Advisor or of entities that provide services to the Company or any Affiliate of the Company, (c) persons who perform bona fide
consulting or advisory services for the Company, the Advisor, any Affiliate or the Company, and (d) the Company’s Independent Directors (as defined in the Company’s charter). The Administrator may also grant Awards to a person in
connection with hiring, retention or otherwise, prior to the date the person first becomes eligible to participate in the Plan, provided that such Awards shall not become vested or exercisable, and no shares shall be issued to such person, prior to
the date the person first becomes eligible to participate in the Plan.  
  

	6.	Awards 

  
 The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan. Awards may be granted individually or in tandem
with other types of Awards, concurrently with or with respect to outstanding Awards. All Awards are subject to the terms and conditions provided in the Grant Agreement. The Administrator may permit or require a recipient of an Award to defer such
individual’s receipt of the payment of cash or the delivery of Common Stock that would otherwise be due to such individual by virtue of the exercise of, payment of, or lapse or waiver of restrictions respecting, any Award. If any such payment
deferral is required or permitted, the Administrator shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
  
 (a) Stock Options. The Administrator may from time to time grant to eligible participants Awards of incentive stock options as that term is defined
in Code section 422 or nonstatutory stock options; provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any current or hereafter existing “parent
corporation” or “subsidiary corporation,” as defined in Code sections 424(e) and (f), respectively, of the Company and any other individuals who are eligible to receive incentive stock options under the provisions of Code
section 422. Options intended to qualify as incentive stock options under Code section 422 must have an exercise price at least equal to Fair Market Value as of the date of grant, but nonstatutory stock options may be granted with an
exercise price less than Fair Market Value. No stock option shall be an incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such stock option. 
  
 (b) Stock Appreciation Rights. The Administrator may from time to
time grant to eligible participants Awards of Stock Appreciation Rights (“SAR”). A SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the
product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or
portion thereof, which is exercised. The base price per share specified in the Grant Agreement shall not be less than the lower of the Fair Market Value on the grant date or the exercise price of any tandem stock option Award to which the SAR is
related. Payment by the Company of the amount receivable upon any exercise of a SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the 
  

 4 

 Administrator. If upon settlement of the exercise of a SAR a grantee is to receive a portion of such payment in shares of
Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date. No fractional shares shall be used for such payment and the Administrator shall determine
whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated. 
  
 (c) Stock Awards. The Administrator may from time to time grant restricted or unrestricted stock Awards to eligible participants in such amounts,
on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine. A stock Award may be paid in Common Stock, in cash, or in a combination of Common
Stock and cash, as determined in the sole discretion of the Administrator. 
  
 (d) Phantom Stock. The Administrator may from time to time grant Awards to eligible participants denominated in stock-equivalent units (“phantom stock”) in such amounts and on such terms and
conditions as it shall determine. Phantom stock units granted to a participant shall be credited to a bookkeeping reserve account solely for accounting purposes and shall not require a segregation of any of the Company’s assets. An Award of
phantom stock may be settled in Common Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee shall not
have the rights of a stockholder with respect to any shares of Common Stock represented by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee. 
  
 (e) Performance Awards. The Administrator may, in its discretion, grant performance awards which become payable on
account of attainment of one or more performance goals established by the Administrator. Performance awards may be paid by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the
Administrator. Performance goals established by the Administrator may be based on the Company’s operating income or one or more other business criteria selected by the Administrator that apply to an individual or group of individuals, a
business unit, or the Company as a whole, over such performance period as the Administrator may designate. 
  
 (f) Profits Interest Units. The Administrator may from time to time grant an award of an interest in the profits and gains of KBS Limited
Partnership, the Company’s operating partnership (such awards, “Profits Interest Units”), to eligible participants in such amount and subject to such terms and conditions as may be determined by the Administrator; provided,
however, that Profits Interest Units may only be issued to a participant for the performance of services to or for the benefit of KBS Limited Partnership in the participant’s capacity as a partner of KBS Limited Partnership or in anticipation
of such participant’s becoming a partner of KBS Limited Partnership. 
  
 (g) Other Stock-Based Awards. The Administrator may from time to time grant other stock-based awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including
no consideration or such minimum consideration as may be required by law, as it shall determine. Other stock-based awards may be denominated in cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation units, in
securities or debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in Common Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the
sole discretion of the Administrator. 
  

	7.	Miscellaneous 

  
 (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company, the Advisor or an Affiliate or either, or make provision
satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company, the Advisor or an Affiliate of either may, to the
extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In the event that payment to the Company, the Advisor or an Affiliate of such tax obligations is made in shares
of Common Stock, such shares shall be valued at Fair Market Value on 
  

 5 

 the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation.

  
 (b) Loans. To the extent otherwise permitted by law,
the Company, the Advisor or an Affiliate of either may make or guarantee loans to grantees to assist grantees in exercising Awards and satisfying any withholding tax obligations. 
  
 (c) Transferability. Except as otherwise determined by the Administrator, and in any event in the case of an
incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan shall be transferable by a grantee otherwise than by will or the laws of descent and distribution. Unless
otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee is under a legal
disability, by the grantee’s guardian or legal representative. 
  
 (d) Adjustments for Corporate Transactions and Other Events. 
  

	 	(i)	Stock Dividend, Stock Split and Reverse Stock Split. In the event of a stock dividend of, or stock split or reverse stock split affecting, the Common Stock, (A) the
maximum number of shares of such Common Stock as to which Awards may be granted under this Plan and the maximum number of shares with respect to which Awards may be granted during any one fiscal year of the Company to any individual, as provided in
Section 4 of the Plan, and (B) the number of shares covered by and the exercise price and other terms of outstanding Awards, shall, without further action of the Board, be adjusted to reflect such event. The Administrator may make
adjustments, in its discretion, to address the treatment of fractional shares and fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split. 

  

	 	(ii)	Non-Change in Control Transactions. Except with respect to the transactions set forth in Section 7(d)(i), in the event of any change affecting the Common Stock, the
Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in Control of the Company, the
Administrator, in its discretion and without the consent of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which Awards may be granted under the
Plan, in the aggregate and with respect to any individual during any one fiscal year of the Company, as provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not limited to modifying the number,
kind and price of securities subject to Awards. 

  

	 	(iii)	Change in Control Transactions. In the event of any transaction resulting in a Change in Control of the Company, outstanding stock options and other Awards that are payable
in or convertible into Common Stock under this Plan will terminate upon the effective time of such Change in Control unless provision is made in connection with the transaction for the continuation or assumption of such Awards by, or for the
substitution of the equivalent awards of, the surviving or successor entity or a parent thereof. In the event of such termination, (A) the outstanding stock options and other Awards that will terminate upon the effective time of the Change in
Control shall become fully vested immediately before the effective time of the Change in Control, and (B) the holders of stock options and other Awards under the Plan will be permitted, immediately before the Change in Control, to exercise or
convert all portions of such stock options or other Awards under the Plan that are then exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the 

  

 6 

 Change in Control. If, immediately before the Change in Control, no stock of the Company is readily
tradeable on an established securities market or otherwise, and the vesting of an Award or Awards pursuant to this Section 7(d)(iii) would be treated as a “parachute payment” (as defined in section 280G of the Code), then such
Award or Awards shall not vest unless the requirements of the shareholder approval exemption of section 280G(b)(5) of the Code have been satisfied with respect to such Award or Awards. 
  

	 	(iv)	Unusual or Nonrecurring Events. The Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of,
and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the
Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

  
 (e) Substitution of Awards in Mergers and Acquisitions. Awards may be
granted under the Plan from time to time in substitution for awards held by employees, officers, consultants, directors, managers or general partners of entities who become or are about to become employees, officers, consultants or directors of the
Company or an Affiliate of the Company as the result of a merger or consolidation of the employing entity with the Company or an Affiliate of the Company, or the acquisition by the Company or an Affiliate of the Company of the assets or stock of the
employing entity. The terms and conditions of any substitute Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the substitute Awards to
the provisions of the awards for which they are substituted. 
  
 (f) Termination, Amendment and Modification of the Plan. The Board may terminate, amend or modify the Plan or any portion thereof at any time. Except as otherwise determined by the Board, termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 
  
 (g) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement thereunder shall confer any
right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice and whether or not such termination results in
(i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s interests under the Plan. 
  
 (h) No Trust or Fund Created. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person acquires a right to receive payments from the
Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company. 
  
 (i) Governing Law. The validity, construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules,
regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in
accordance with applicable federal laws and the laws of the State of Maryland, without regard to its conflict of laws principles. 
  
 (j) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan is adopted by the Board, subject to approval of the
stockholders within twelve months before or after such date. No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the effective date of the Plan, or if earlier, the tenth
anniversary of the date this Plan is approved by the stockholders. Subject to other applicable provisions of the Plan, all 
  

 7 

 Awards made under the Plan prior to such termination of the Plan shall remain in effect until such Awards have been
satisfied or terminated in accordance with the Plan and the terms of such Awards. 
  
 PLAN APPROVAL 
  
 Date Approved by the
Board:                      
  
 Date Approved by the Stockholders:                     

  

 8

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