AMENDMENT NO. 2
This amendment no. 2 to the Advisory Agreement dated as of November 8, 2007 (the Advisory Agreement) between KBS Real Estate Investment Trust, Inc., a Maryland corporation (the Company), and KBS Capital Advisors LLC, a Delaware limited liability company (the Advisor), is entered as of March 26, 2008 (the Amendment). Capitalized terms used herein but not defined shall have the meaning set forth in the Advisory Agreement.
WHEREAS, upon the terms set forth in this Amendment, the Advisor has agreed to amend and restate Article 16 of the Advisory Agreement and advance funds to the Company upon the terms set forth below.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree that Article 16 of the Advisory Agreement is hereby amended and restated in its entirety as follows:
Notwithstanding anything contained in Article 9 of this Agreement to the contrary, the Advisor hereby agrees to advance funds (the Advance) to the Company equal to the amount by which the cumulative amount of distributions declared by the Company from January 1, 2006 through the period ending May 31, 2008 exceeds the amount of the Companys funds from operations (as defined by NAREIT) from January 1, 2006 through May 31, 2008. Advisor further agrees that the Company will only be obligated to reimburse the Advisor for the Advance if and to the extent that the Companys cumulative funds from operations for the period commencing January 1, 2006 through the date of any such reimbursement exceed the lesser of (i) the cumulative amount of any distributions declared and payable to the Companys Stockholders as of the date of such reimbursement or (ii) an amount that is equal to a 7.0% cumulative, non-compounded, annual return on Invested Capital for the Companys Stockholders for the period from July 18, 2006 through the date of such reimbursement. Advisor understands and agrees that no interest shall accrue on the Advance being made under this Agreement.
Signature page follows.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written.
|KBS REAL ESTATE INVESTMENT TRUST, INC.|
|Charles J. Schreiber, Jr., Chief Executive Officer|
|KBS CAPITAL ADVISORS LLC|
Schreiber Real Estate Investments, L.P., a
Schreiber Investments, LLC, as general
|Charles J. Schreiber, Jr., Manager|