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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">FORM
      8-K</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
      REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 OR 15 (d) of</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of Report (Date of earliest event reported):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
      25, 2008</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman">KILROY
      REALTY CORPORATION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
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            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="middle" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="middle" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Maryland</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
                or other jurisdiction of</font></div>
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                File Number)</font></div>
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            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(IRS
                Employer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Identification
                No.)</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12200
      W. Olympic Boulevard, Suite 200, Los Angeles,
      California&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
90064</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(Address
      of principal executive
      offices)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(Zip Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code:&#160;&#160;(310) 481-8400</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;
</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">N/A</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      name or former address, if changed since last report.)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instructions A.2.):</font></div>
    <div>
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            </td>
            <td align="left" valign="top" width="69%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
            </td>
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      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: wingdings"><font style="DISPLAY: inline; COLOR: #000000">&#168;</font></font></div>
            </td>
            <td align="left" valign="top" width="69%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: wingdings"><font style="DISPLAY: inline; COLOR: #000000">&#168;</font></font></div>
            </td>
            <td align="left" valign="top" width="69%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: wingdings"><font style="DISPLAY: inline; COLOR: #000000">&#168;</font></font></div>
            </td>
            <td align="left" valign="top" width="69%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
      5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
      APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN
      OFFICERS.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 25, 2008, the Executive Compensation Committee (the &#8220;Committee&#8221;) of the
      Board of Directors of Kilroy Realty Corporation (the &#8220;Company&#8221;) approved the
      following 2008 base salaries for the Company&#8217;s executive
      management:&#160;&#160;$1,050,000 for the Chief Executive Officer, $575,000 for
      the Chief Operating Officer, and $525,000 for the Chief Financial
      Officer.&#160;&#160;The Committee also approved the 2008 annual bonus program
      and the 2008 annual long-term incentive program for executive management that
      will allow for executive management to receive bonus compensation in the event
      certain specified corporate performance measures are achieved. The purpose
      of
      these programs is to provide incentive to the Company&#8217;s executive officers to
      attain established performance measures and to increase stockholder value in
      a
&#8220;pay for performance&#8221; structure that is aligned with the interests of the
      Company&#8217;s stockholders.&#160;&#160;Executive management who will participate in
      the programs are the Company&#8217;s Chief Executive Officer, Chief Operating Officer
      and Chief Financial Officer (collectively, the &#8220;Executive
      Officers&#8221;).&#160;&#160;For the Executive Officers, the treatment of their awards
      under these programs upon a change in control or termination of employment
      (including due to death or disability) will be governed by the applicable terms
      contained within each Executive Officer&#8217;s employment agreement rather than the
      applicable terms of these programs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2008
      Annual Bonus Program and 2008 Annual Long-Term Incentive Program</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      specific performance measures for the 2008 annual bonus program and the 2008
      annual long-term incentive program are based upon: 2008 funds from operations
      targets, 2008 revenue targets, 2008 operating margin targets, and 2008 leasing
      targets (each, a &#8220;Performance Criterion&#8221; and, collectively, the &#8220;Performance
      Criteria&#8221;).&#160;&#160;The actual total award payout under these programs
      relative to these performance measures will be determined as
      follows:&#160;&#160;25% for achievement of 2008 funds from operation targets,
      25% for 2008 revenue targets, 25% for 2008 operating margin targets, and 25%
      for
      2008 leasing targets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      2008 annual bonus program and the 2008 annual long-term incentive program,
      the
      Executive Officers are eligible to earn different amounts of incentive
      compensation depending on the level of performance achieved for each of the
      Performance Criteria.&#160;&#160;The Executive Officers must exceed a minimum
      threshold performance level for each Performance Criterion to earn incentive
      compensation with respect to that individual Performance Criterion under each
      of
      these programs.&#160;&#160;Once the Executive Officers exceed the applicable
      minimum thresholds, they are eligible to earn additional incentive compensation
      upon achieving certain target and/or maximum levels of
      performance.&#160;&#160;In the event the Executive Officers exceed the
      applicable thresholds but do not achieve the applicable target and/or maximum
      performance levels, they are entitled to proportional awards.&#160;&#160;When
      calculating the total payout under these programs, the payout under each
      Performance Criterion is calculated independently.&#160;&#160;In the event the
      Executive Officers exceed the maximum performance level for any individual
      Performance Criterion, it can be used to supplement the total possible payout,
      subject to the maximum total payouts as set forth below.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">2008
      Annual Bonus Program</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      2008 annual bonus program, the Chief Executive Officer is eligible to earn
      150%<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>of his 2008
      base salary in the event threshold performance levels are achieved for all
      of
      the Performance Criteria, 300% of his 2008 base salary in the event target
      performance levels are achieved for all of the Performance Criteria, and 450%
      of
      his 2008 base salary in the event maximum performance levels are achieved for
      all of the Performance Criteria.&#160;&#160;The Chief Operating Officer is
      eligible to earn 83%<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>of his 2008 base salary
      in the event threshold performance levels are achieved for all of the
      Performance Criteria, 167% of his 2008 base salary in the event target
      performance levels are achieved for all of the Performance Criteria, and 250%
      of
      his 2008 base salary in the event maximum performance levels are achieved for
      all of the Performance Criteria.&#160;&#160;The Chief Financial Officer is
      eligible to earn 75% of his 2008 base salary in the event threshold performance
      levels are achieved for all of the Performance Criteria, 150% of his 2008 base
      salary in the event target performance levels are achieved for all of the
      Performance Criteria, and 225% of his 2008 base salary in the event maximum
      performance levels are achieved for all of the Performance
      Criteria.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
      is
      anticipated that any amounts earned under the 2008 annual bonus program will
      be
      paid in cash during the first quarter of 2009. Payments under this program
      are
      contingent on continued employment through December 31, 2008.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">2008
      Annual Long-Term Incentive Program</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      2008 annual long-term incentive program, the Chief Executive Officer is eligible
      to earn 254% of his 2008 base salary in the event threshold performance levels
      are achieved for all of the Performance Criteria, 508% of his 2008 base salary
      in the event target performance levels are achieved for all of the Performance
      Criteria, and 762% of his 2008 base salary in the event the maximum performance
      levels are achieved for all of the Performance Criteria; the Chief Operating
      Officer is eligible to earn 214% of his 2008 base salary in the event the
      threshold performance levels are achieved for all of the Performance Criteria,
      429% of his 2008 base salary in the event target performance levels are achieved
      for all of the Performance Criteria, and 643% of his 2008 base salary in the
      event the maximum performance levels are achieved for all of the Performance
      Criteria; and the Chief Financial Officer is eligible to earn 159% of his 2008
      base salary in the event threshold performance levels are achieved for all
      of
      the Performance Criteria, 317% of his 2008 base salary in the event target
      performance levels are achieved for all of the Performance Criteria, and 476%
      of
      his 2008 base salary in the event the maximum performance levels are achieved
      for all of the Performance Criteria.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Individual
      awards under the 2008 annual long-term incentive program will be made under
      the
      Kilroy Realty 2006 Incentive Award Plan, and it is anticipated that such awards
      will be paid in restricted stock or, if available, and at the employee&#8217;s option,
      in long-term incentive program partnership units of Kilroy Realty, L.P. (&#8220;LTIP
      Units&#8221;) that, subject to vesting and other conditions, may become exchangeable
      on a one-for-one basis for shares of the Company&#8217;s common stock or cash, at the
      election of the Company.&#160;&#160;The Company anticipates that the restricted
      stock or LTIP Units will be issued during the first quarter of 2009, subject
      to
      forfeiture in the event employment is not continued.&#160;&#160;Each share of
      restricted stock or LTIP Unit, both vested and non-vested, will entitle the
      holder to receive dividends or distributions in an amount per restricted share
      or LTIP Unit equal to the dividends per share paid on the Company&#8217;s common stock
      or distributions in respect of Kilroy Realty, L.P.&#8217;s common limited partnership
      units, as applicable.&#160;&#160;Awards under the 2008 annual long-term
      incentive program will vest 50% on December 31, 2009 and 50% on December 31,
      2010 based on continued employment through the applicable vesting
      date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="middle" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="bottom" width="29%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td valign="middle" width="19%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="47%">
            </td>
            <td align="left" valign="bottom" width="1%">
            </td>
            <td align="left" colspan="3" valign="bottom" width="52%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">KILROY
                REALTY CORPORATION</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="47%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:
                January 31, 2008</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
            </td>
            <td align="left" valign="bottom" width="1%">
            </td>
            <td align="left" valign="bottom" width="4%">
            </td>
            <td align="left" valign="bottom" width="29%">
            </td>
            <td align="left" valign="bottom" width="19%">
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="47%">
            </td>
            <td align="left" valign="bottom" width="1%">
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">
              </div>
            </td>
            <td align="left" valign="bottom" width="29%" style="BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/&#160;
                Heidi R. Roth</font></div>
            </td>
            <td valign="bottom" width="19%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="47%">
            </td>
            <td align="left" valign="bottom" width="1%">
            </td>
            <td align="left" valign="bottom" width="4%">
            </td>
            <td align="left" valign="bottom" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: times new roman">Heidi
                R. Roth</font></div>
            </td>
            <td valign="bottom" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="47%">
            </td>
            <td align="left" valign="bottom" width="1%">
            </td>
            <td align="left" valign="bottom" width="4%">
            </td>
            <td align="left" valign="bottom" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="FONT-SIZE: 9pt; FONT-FAMILY: times new roman">&#160;<font style="FONT-SIZE: 9pt; FONT-STYLE: italic; FONT-FAMILY: times new roman">Senior
                Vice President and Controller</font></font></div>
            </td>
            <td valign="bottom" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

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[{"type": "8-K", "sequence": "1", "filename": "d8k4.htm", "description": "KILROY REALTY CORPORATION 01/31/08 8-K", "secsgml_size_bytes": 36090}]
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d8k4.htm
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 OR 15 (d) of
The
      Securities Exchange Act of 1934
Date
      of Report (Date of earliest event reported):
January
      25, 2008
KILROY
      REALTY CORPORATION
(Exact
      name of registrant as specified in its charter)
Maryland
1-12675
95-4598246
(State
                or other jurisdiction of
incorporation)
(Commission
                File Number)
(IRS
                Employer
Identification
                No.)
12200
      W. Olympic Boulevard, Suite 200, Los Angeles,
      California                                                                                                                                
90064
(Address
      of principal executive
      offices)                                                                                                                
                                      
(Zip Code)
Registrant's
      telephone number, including area code:  (310) 481-8400
N/A
(Former
      name or former address, if changed since last report.)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instructions A.2.):
¨
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
¨
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
¨
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
¨
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
ITEM
      5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
      APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN
      OFFICERS.
On
      January 25, 2008, the Executive Compensation Committee (the "Committee") of the
      Board of Directors of Kilroy Realty Corporation (the "Company") approved the
      following 2008 base salaries for the Company's executive
      management:  $1,050,000 for the Chief Executive Officer, $575,000 for
      the Chief Operating Officer, and $525,000 for the Chief Financial
      Officer.  The Committee also approved the 2008 annual bonus program
      and the 2008 annual long-term incentive program for executive management that
      will allow for executive management to receive bonus compensation in the event
      certain specified corporate performance measures are achieved. The purpose
      of
      these programs is to provide incentive to the Company's executive officers to
      attain established performance measures and to increase stockholder value in
      a
"pay for performance" structure that is aligned with the interests of the
      Company's stockholders.  Executive management who will participate in
      the programs are the Company's Chief Executive Officer, Chief Operating Officer
      and Chief Financial Officer (collectively, the "Executive
      Officers").  For the Executive Officers, the treatment of their awards
      under these programs upon a change in control or termination of employment
      (including due to death or disability) will be governed by the applicable terms
      contained within each Executive Officer's employment agreement rather than the
      applicable terms of these programs.
2008
      Annual Bonus Program and 2008 Annual Long-Term Incentive Program
The
      specific performance measures for the 2008 annual bonus program and the 2008
      annual long-term incentive program are based upon: 2008 funds from operations
      targets, 2008 revenue targets, 2008 operating margin targets, and 2008 leasing
      targets (each, a "Performance Criterion" and, collectively, the "Performance
      Criteria").  The actual total award payout under these programs
      relative to these performance measures will be determined as
      follows:  25% for achievement of 2008 funds from operation targets,
      25% for 2008 revenue targets, 25% for 2008 operating margin targets, and 25%
      for
      2008 leasing targets.
Under
      the
      2008 annual bonus program and the 2008 annual long-term incentive program,
      the
      Executive Officers are eligible to earn different amounts of incentive
      compensation depending on the level of performance achieved for each of the
      Performance Criteria.  The Executive Officers must exceed a minimum
      threshold performance level for each Performance Criterion to earn incentive
      compensation with respect to that individual Performance Criterion under each
      of
      these programs.  Once the Executive Officers exceed the applicable
      minimum thresholds, they are eligible to earn additional incentive compensation
      upon achieving certain target and/or maximum levels of
      performance.  In the event the Executive Officers exceed the
      applicable thresholds but do not achieve the applicable target and/or maximum
      performance levels, they are entitled to proportional awards.  When
      calculating the total payout under these programs, the payout under each
      Performance Criterion is calculated independently.  In the event the
      Executive Officers exceed the maximum performance level for any individual
      Performance Criterion, it can be used to supplement the total possible payout,
      subject to the maximum total payouts as set forth below.
2008
      Annual Bonus Program
Under
      the
      2008 annual bonus program, the Chief Executive Officer is eligible to earn
      150%
of his 2008
      base salary in the event threshold performance levels are achieved for all
      of
      the Performance Criteria, 300% of his 2008 base salary in the event target
      performance levels are achieved for all of the Performance Criteria, and 450%
      of
      his 2008 base salary in the event maximum performance levels are achieved for
      all of the Performance Criteria.  The Chief Operating Officer is
      eligible to earn 83%
of his 2008 base salary
      in the event threshold performance levels are achieved for all of the
      Performance Criteria, 167% of his 2008 base salary in the event target
      performance levels are achieved for all of the Performance Criteria, and 250%
      of
      his 2008 base salary in the event maximum performance levels are achieved for
      all of the Performance Criteria.  The Chief Financial Officer is
      eligible to earn 75% of his 2008 base salary in the event threshold performance
      levels are achieved for all of the Performance Criteria, 150% of his 2008 base
      salary in the event target performance levels are achieved for all of the
      Performance Criteria, and 225% of his 2008 base salary in the event maximum
      performance levels are achieved for all of the Performance
      Criteria.
It
      is
      anticipated that any amounts earned under the 2008 annual bonus program will
      be
      paid in cash during the first quarter of 2009. Payments under this program
      are
      contingent on continued employment through December 31, 2008.
2008
      Annual Long-Term Incentive Program
Under
      the
      2008 annual long-term incentive program, the Chief Executive Officer is eligible
      to earn 254% of his 2008 base salary in the event threshold performance levels
      are achieved for all of the Performance Criteria, 508% of his 2008 base salary
      in the event target performance levels are achieved for all of the Performance
      Criteria, and 762% of his 2008 base salary in the event the maximum performance
      levels are achieved for all of the Performance Criteria; the Chief Operating
      Officer is eligible to earn 214% of his 2008 base salary in the event the
      threshold performance levels are achieved for all of the Performance Criteria,
      429% of his 2008 base salary in the event target performance levels are achieved
      for all of the Performance Criteria, and 643% of his 2008 base salary in the
      event the maximum performance levels are achieved for all of the Performance
      Criteria; and the Chief Financial Officer is eligible to earn 159% of his 2008
      base salary in the event threshold performance levels are achieved for all
      of
      the Performance Criteria, 317% of his 2008 base salary in the event target
      performance levels are achieved for all of the Performance Criteria, and 476%
      of
      his 2008 base salary in the event the maximum performance levels are achieved
      for all of the Performance Criteria.
Individual
      awards under the 2008 annual long-term incentive program will be made under
      the
      Kilroy Realty 2006 Incentive Award Plan, and it is anticipated that such awards
      will be paid in restricted stock or, if available, and at the employee's option,
      in long-term incentive program partnership units of Kilroy Realty, L.P. ("LTIP
      Units") that, subject to vesting and other conditions, may become exchangeable
      on a one-for-one basis for shares of the Company's common stock or cash, at the
      election of the Company.  The Company anticipates that the restricted
      stock or LTIP Units will be issued during the first quarter of 2009, subject
      to
      forfeiture in the event employment is not continued.  Each share of
      restricted stock or LTIP Unit, both vested and non-vested, will entitle the
      holder to receive dividends or distributions in an amount per restricted share
      or LTIP Unit equal to the dividends per share paid on the Company's common stock
      or distributions in respect of Kilroy Realty, L.P.'s common limited partnership
      units, as applicable.  Awards under the 2008 annual long-term
      incentive program will vest 50% on December 31, 2009 and 50% on December 31,
      2010 based on continued employment through the applicable vesting
      date.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
KILROY
                REALTY CORPORATION
Date:
                January 31, 2008
By:
/s/ 
                Heidi R. Roth
Heidi
                R. Roth
Senior
                Vice President and Controller