Document:

exv10w10

EXHIBIT 10.10

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is effective as of May 1, 2008 (the “Effective
Date”), by and between FIDELITY NATIONAL INFORMATION SERVICES, INC., a Georgia corporation (the
“Company”), and DAN SCHEUBLE (the “Employee”). In consideration of the mutual covenants and
agreements set forth herein, the parties agree as follows:

     1. Purpose and Release. The purpose of this Agreement is to terminate all prior
agreements between Company, and any of its affiliates, and Employee relating to the subject matter
of this Agreement (including an Employment Agreement dated March 9, 2005 with Fidelity Information
Services, Inc.), to recognize Employee’s significant contributions to the overall financial
performance and success of Company, to protect Company’s business interests through the addition of
restrictive covenants, and to provide a single, integrated document which shall provide the basis
for Employee’s continued employment by Company. In consideration of the execution of this Agreement
and the termination of all such prior agreements, the parties each release all rights and claims
that they have, had or may have arising under such prior agreements.

     2. Employment and Duties. Subject to the terms and conditions of this Agreement,
Company employs Employee to serve as Executive Vice President, Mortgage. Employee accepts such
employment and agrees to undertake and discharge the duties, functions and responsibilities
commensurate with the aforesaid position and such other duties and responsibilities as may be
prescribed from time to time by the Chief Executive Officer (the “CEO”) or the Board of Directors
of the Company (the “Board”). Except as expressly provided in Subsection 13(c), Employee shall
devote substantially all of his business time, attention and effort to the performance of his
duties hereunder and shall not engage in any business, profession or occupation, for compensation
or otherwise without the express written consent of the CEO or Board, other than personal, personal
investment, charitable, or civic activities or other matters that do not conflict with Employee’s
duties.

     3. Term. This Agreement shall commence on the Effective Date and, unless terminated
as set forth in Section 8, continue through April 15, 2011. This Agreement shall be extended
automatically for successive one (1) year periods (the initial period and any extensions being
collectively referred to as the “Employment Term”). Either party may terminate this Agreement as of
the end of the then-current period by giving written notice at least thirty (30) days prior to the
end of that period. Notwithstanding any termination of this Agreement or Employee’s employment,
Sections 8 through 10 shall remain in effect until all obligations and benefits that accrued prior
to termination are satisfied.

     4. Salary. During the Employment Term, Company shall pay Employee an annual base
salary, before deducting all applicable withholdings, of no less than $440,000.00 per year, payable
at the time and in the manner dictated by Company’s standard payroll policies. Such minimum annual
base salary may be periodically reviewed and increased (but not decreased without Employee’s
express written consent) at the discretion of the CEO, Board or Compensation Committee of the Board
(the “Committee”) to reflect, among other matters, cost of living increases and performance results
(such annual base salary, including any increases pursuant to this Section 4, the “Annual Base
Salary”).

 

 

     5. Other Compensation and Fringe Benefits. In addition to any executive bonus,
pension, deferred compensation and long-term incentive plans which Company or an affiliate of
Company may from time to time make available to Employee, Employee shall be entitled to the
following during the Employment Term:

	 	(a)	 	the standard Company benefits enjoyed by Company’s other top executives as a
group;
	 
	 	(b)	 	medical and other insurance coverage (for Employee and any covered dependents)
provided by Company to its other top executives as a group;
	 
	 	(c)	 	supplemental disability insurance sufficient to provide two-thirds of
Employee’s pre-disability Annual Base Salary;
	 
	 	(d)	 	an annual incentive bonus opportunity under Company’s annual incentive plan
(“Annual Bonus Plan”) for each calendar year included in the Employment Term, with such
opportunity to be earned based upon attainment of performance objectives established by
the CEO, Board or Committee (“Annual Bonus”). Employee’s target Annual Bonus under the
Annual Bonus Plan shall be no less than 100% of Employee’s Annual Base Salary, with a
maximum of up to 200% of Employee’s Annual Base Salary (collectively, the target and
maximum are referred to as the “Annual Bonus Opportunity”). Employee’s Annual Bonus
Opportunity may be periodically reviewed and increased (but not decreased without
Employee’s express written consent) at the discretion of the Committee, Board or CEO.
The Annual Bonus shall be paid no later than the March 15th first following
the calendar year to which the Annual Bonus relates. Unless provided otherwise herein
or the Board determines otherwise, no Annual Bonus shall be paid to Employee unless
Employee is employed by Company, or an affiliate thereof, on the Annual Bonus payment
date; and
	 
	 	(e)	 	participation in Company’s equity incentive plans.

     6. Vacation. For and during each calendar year within the Employment Term, Employee
shall be entitled to reasonable paid vacation periods consistent with Employee’s position and in
accordance with Company’s standard policies, or as the CEO, Board or Committee may approve. In
addition, Employee shall be entitled to such holidays consistent with Company’s standard policies
or as the CEO, Board or Committee may approve.

     7. Expense Reimbursement. In addition to the compensation and benefits provided
herein, Company shall, upon receipt of appropriate documentation, reimburse Employee each month for
his reasonable travel, lodging, entertainment, promotion and other ordinary and necessary business
expenses to the extent such reimbursement is permitted under Company’s expense reimbursement
policy.

     8. Termination of Employment. Company or Employee may terminate Employee’s employment
at any time and for any reason in accordance with Subsection 8(a) below. The Employment Term shall
be deemed to have ended on the last day of Employee’s employment. The Employment Term shall
terminate automatically upon Employee’s death.

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	 	(a)	 	Notice of Termination. Any purported termination of Employee’s
employment (other than by reason of death) shall be communicated by written Notice of
Termination (as defined herein) from one party to the other in accordance with the
notice provisions contained in Section 25. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice that indicates the Date of Termination (as that term
is defined in Subsection 8(b)) and, with respect to a termination due to Cause (as that
term is defined in Subsection 8(d)), Disability (as that term is defined in Subsection
8(e)) or Good Reason (as that term is defined in Subsection 8(f)), sets forth in
reasonable detail the facts and circumstances that are alleged to provide a basis for
such termination. A Notice of Termination from Company shall specify whether the
termination is with or without Cause or due to Employee’s Disability. A Notice of
Termination from Employee shall specify whether the termination is with or without Good
Reason or due to Disability.
	 
	 	(b)	 	Date of Termination. For purposes of this Agreement, “Date of
Termination” shall mean the date specified in the Notice of Termination (but in no
event shall such date be earlier than the thirtieth (30th) day following the
date the Notice of Termination is given) or the date of Employee’s death.
	 
	 	(c)	 	No Waiver. The failure to set forth any fact or circumstance in a
Notice of Termination, which fact or circumstance was not known to the party giving the
Notice of Termination when the notice was given, shall not constitute a waiver of the
right to assert such fact or circumstance in an attempt to enforce any right under or
provision of this Agreement.
	 
	 	(d)	 	Cause. For purposes of this Agreement, a termination for “Cause” means
a termination by Company based upon Employee’s: (i) persistent failure to perform
duties consistent with a commercially reasonable standard of care (other than due to a
physical or mental impairment or due to an action or inaction directed by Company that
would otherwise constitute Good Reason); (ii) willful neglect of duties (other than due
to a physical or mental impairment or due to an action or inaction directed by Company
that would otherwise constitute Good Reason); (iii) conviction of, or pleading nolo
contendere to, criminal or other illegal activities involving dishonesty; (iv) material
breach of this Agreement; or (v) failure to materially cooperate with or impeding an
investigation authorized by the Board.
	 
	 	(e)	 	Disability. For purposes of this Agreement, a termination based upon
“Disability” means a termination by Company based upon Employee’s entitlement to
long-term disability benefits under Company’s long-term disability plan or policy, as
the case may be, as in effect on the Date of Termination.
	 
	 	(f)	 	Good Reason. For purposes of this Agreement, a termination for “Good
Reason” means a termination by Employee during the Employment Term based upon the
occurrence (without Employee’s express written consent) of any of the following:

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	 	(i)	 	a material diminution in Employee’s position or title, or the
assignment of duties to Employee that are materially inconsistent with
Employee’s position or title;
	 
	 	(ii)	 	a material diminution in Employee’s Annual Base Salary or
Annual Bonus Opportunity;
	 
	 	(iii)	 	within six (6) months immediately preceding or within two (2)
years immediately following a Change in Control: (A) a material adverse change
in Employee’s status, authority or responsibility (e.g., The Company has
determined that a change in the department or functional group over which
Employee has managerial authority would constitute such a material adverse
change); (B) a change in the person to whom Employee reports that results in a
material adverse change to the Employee’s service relationship or the
conditions under which Employee performs his duties; (C) a material adverse
change in the position to whom Employee reports or a material diminution in the
authority, duties or responsibilities of that position; (D) a material
diminution in the budget over which Employee has managing authority; or (E) a
material change in the geographic location of Employee’s principal place of
employment, which is currently Jacksonville, Florida (e.g., The Company has
determined that a relocation of more than thirty-five (35) miles would
constitute such a material change); or
	 
	 	(iv)	 	a material breach by Company of any of its obligations under
this Agreement.

Notwithstanding the foregoing, Employee being placed on a paid leave for up to sixty (60) days
pending a determination of whether there is a basis to terminate Employee for Cause shall not
constitute Good Reason. Employee’s continued employment shall not constitute consent to, or a
waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder;
provided, however, that no such event described above shall constitute Good Reason unless: (1)
Employee gives Notice of Termination to Company specifying the condition or event relied upon for
such termination either: (x) within ninety (90) days of the initial existence of such event; or (y)
in the case of an event predating a Change in Control, within ninety (90) days of the Change in
Control; and (2) Company fails to cure the condition or event constituting Good Reason within
thirty (30) days following receipt of Employee’s Notice of Termination.

     9. Obligations of Company Upon Termination.

	 	(a)	 	Termination by Company for a Reason Other than Cause, Death or Disability
and Termination by Employee for Good Reason. If Employee’s employment is
terminated by: (1) Company for any reason other than Cause, Death or Disability; or (2)
Employee for Good Reason:

	 	(i)	 	Company shall pay Employee the following (collectively, the
“Accrued Obligations”): (A) within five (5) business days after the Date of

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	 	 	 	Termination, any earned but unpaid Annual Base Salary; (B) within a
reasonable time following submission of all applicable documentation, any
expense reimbursement payments owed to Employee for expenses incurred prior
to the Date of Termination; and (C) no later than March 15th of the year in
which the Date of Termination occurs, any earned but unpaid Annual Bonus
payments relating to the prior calendar year;
	 
	 	(ii)	 	Company shall pay Employee no later than March 15th
of the calendar year following the year in which the Date of Termination
occurs, a prorated Annual Bonus based upon the actual Annual Bonus that would
have been earned by Employee for the year in which the Date of Termination
occurs (based upon the target Annual Bonus opportunity in the year in which the
Date of Termination occurred, or the prior year if no target Annual Bonus
opportunity has yet been determined, and the actual satisfaction of the
applicable performance measures, but ignoring any requirement under the Annual
Bonus plan that Employee must be employed on the payment date) multiplied by
the percentage of the calendar year completed before the Date of Termination;
	 
	 	(iii)	 	Company shall pay Employee, within thirty (30) business days
after the Date of Termination, a lump-sum payment equal to 300% of the sum of:
(A) Employee’s Annual Base Salary in effect immediately prior to the Date of
Termination (disregarding any reduction in Annual Base Salary to which Employee
did not expressly consent in writing); and (B) the highest Annual Bonus paid to
Employee by Company within the three (3) years preceding his termination of
employment or, if higher, the target Annual Bonus opportunity in the year in
which the Date of Termination occurs;
	 
	 	(iv)	 	All stock option, restricted stock and other equity-based
incentive awards granted by Company that were outstanding but not vested as of
the Date of Termination shall become immediately vested and/or payable, as the
case may be; unless the equity incentive awards are based upon satisfaction of
performance criteria; in which case, they will only vest pursuant to their
express terms; and
	 
	 	(v)	 	As long as Employee pays the full monthly premiums for COBRA
coverage, Company shall provide Employee and, as applicable, Employee’s
eligible dependents with continued medical and dental coverage, on the same
basis as provided to Company’s active executives and their dependents until the
earlier of: (i) three (3) years after the Date of Termination; or (ii) the date
Employee is first eligible for medical and dental coverage (without
pre-existing condition limitations) with a subsequent employer. In addition,
within thirty (30) business days after the Date of Termination, Company shall
pay Employee a lump sum cash payment equal to thirty-six monthly medical and
dental COBRA premiums based on the level of coverage in effect for the Employee
(e.g., employee only or family coverage) on the Date of Termination.

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	 	(b)	 	Termination by Company for Cause and by Employee without Good Reason.
If Employee’s employment is terminated by Company for Cause or by Employee without Good
Reason, Company’s only obligation under this Agreement shall be payment of any Accrued
Obligations.
	 
	 	(c)	 	Termination due to Death or Disability. If Employee’s employment is
terminated due to death or Disability, Company shall pay Employee (or to Employee’s
estate or personal representative in the case of death), within thirty (30) business
days after the Date of Termination: (i) any Accrued Obligations; plus (ii) a prorated
Annual Bonus based upon the target Annual Bonus opportunity in the year in which the
Date of Termination occurred (or the prior year if no target Annual Bonus opportunity
has yet been determined) multiplied by the percentage of the calendar year completed
before the Date of Termination; plus (iii) the unpaid portion of the Annual Base Salary
for the remainder of the Employment Term.
	 
	 	(d)	 	Definition of Change in Control. For purposes of this Agreement, the
term “Change in Control” shall mean that the conditions set forth in any one of the
following subsections shall have been satisfied:

	 	(i)	 	the acquisition, directly or indirectly, by any “person”
(within the meaning of Section 3(a)(9) of the Securities and Exchange Act of
1934, as amended (the “Exchange Act”) and used in Sections 13(d) and 14(d)
thereof) of “beneficial ownership” (within the meaning of Rule 13d-3 of the
Exchange Act) of securities of Company possessing more than 50% of the total
combined voting power of all outstanding securities of Company;
	 
	 	(ii)	 	a merger or consolidation in which Company is not the surviving
entity, except for a transaction in which the holders of the outstanding voting
securities of Company immediately prior to such merger or consolidation hold,
in the aggregate, securities possessing more than 50% of the total combined
voting power of all outstanding voting securities of the surviving entity
immediately after such merger or consolidation;
	 
	 	(iii)	 	a reverse merger in which Company is the surviving entity but
in which securities possessing more than 50% of the total combined voting power
of all outstanding voting securities of Company are transferred to or acquired
by a person or persons different from the persons holding those securities
immediately prior to such merger;
	 
	 	(iv)	 	during any period of two (2) consecutive years during the
Employment Term or any extensions thereof, individuals, who, at the beginning
of such period, constitute the Board, cease for any reason to constitute at
least a majority thereof, unless the election of each director who was not a
director at the beginning of such period has been approved in advance by
directors representing at least two-thirds of the directors then in office who
were directors at the beginning of the period;

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	 	(v)	 	the sale, transfer or other disposition (in one transaction or
a series of related transactions) of assets of Company that have a total fair
market value equal to or more than one-third of the total fair market value of
all of the assets of Company immediately prior to such sale, transfer or other
disposition, other than a sale, transfer or other disposition to an entity (x)
which immediately following such sale, transfer or other disposition owns,
directly or indirectly, at least 50% of Company’s outstanding voting securities
or (y) 50% or more of whose outstanding voting securities is immediately
following such sale, transfer or other disposition owned, directly or
indirectly, by Company. For purposes of the foregoing clause, the sale of
stock of a subsidiary of Company (or the assets of such subsidiary) shall be
treated as a sale of assets of Company; or
	 
	 	(vi)	 	the approval by the stockholders of a plan or proposal for the
liquidation or dissolution of Company.

	 	 	 	For purposes of this Agreement, no event or transaction that is entered into, is
contemplated by, or occurs as a result of the proposed spin-off of the Lender
Processing Services division by Fidelity National Information Services, Inc. that
was publicly announced on October 25, 2007 shall constitute a Change in Control. In
addition, Employee agrees and consents to any conversion or modification of
outstanding stock options, restricted stock or other equity-based incentive awards
permissible under their corresponding plans (if any) and/or the assignment of this
Agreement in connection with that proposed transaction.
	 
	 	(e)	 	Six-Month Delay. To the extent Employee is a “specified employee,” as
defined in Section 409A(a)(2)(B)(i) of the Code and the regulations and other guidance
promulgated thereunder and any elections made by the Company in accordance therewith,
notwithstanding the timing of payment provided in any other Section of this Agreement,
no payment, distribution or benefit under this Agreement that constitutes a
distribution of deferred compensation (within the meaning of Treasury Regulation
Section 1.409A-1(b)) upon separation from service (within the meaning of Treasury
Regulation Section 1.409A-1(h)), after taking into account all available exemptions,
that would otherwise be payable during the six-month period after separation from
service, will be made during such six-month period, and any such payment, distribution
or benefit will instead be paid on the first business day after such six-month period.

     10. Excise Tax Gross-up Payments.

	 	(a)	 	If any payments or benefits paid or provided or to be paid or provided to
Employee or for his benefit pursuant to the terms of this Agreement or otherwise in
connection with, or arising out of, his employment with Company or its subsidiaries or
the termination thereof (a “Payment” and, collectively, the “Payments”) would be
subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, then,
except as otherwise provided in this Subsection 10(a), Employee will be entitled to
receive an additional payment (a “Gross-Up

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	 	 	 	Payment”) in an amount such that, after payment by Employee of all income taxes, all
employment taxes and any Excise Tax imposed upon the Gross-Up Payment (including any
related interest and penalties), Employee retains an amount of the Gross-Up Payment
equal to the Excise Tax (including any related interest and penalties) imposed upon
the Payments. Notwithstanding the foregoing, if the amount of the Payments does not
exceed by more than 3% the amount that would be payable to Employee if the Payments
were reduced to one dollar less than what would constitute a “parachute payment”
under Section 280G of the Code (the “Scaled Back Amount”), then the Payments shall
be reduced, in a manner determined by Employee, to the Scaled Back Amount, and
Employee shall not be entitled to any Gross-Up Payment.
	 
	 	(b)	 	An initial determination of (i) whether a Gross-Up Payment is required pursuant
to this Agreement, and, if applicable, the amount of such Gross-Up Payment or (ii)
whether the Payments must be reduced to the Scaled Back Amount and, if so, the amount
of such reduction, will be made at Company’s expense by an accounting firm selected by
Company. The accounting firm will provide its determination, together with detailed
supporting calculations and documentation, to Company and Employee within ten (10)
business days after the date of termination of Employee’s employment, or such other
time as may be reasonably requested by Company or Employee. If the accounting firm
determines that no Excise Tax is payable by Employee with respect to a Payment or
Payments, it will furnish Employee with an opinion to that effect. If a Gross-Up
Payment becomes payable, such Gross-Up Payment will be paid by Company to Employee
within thirty (30) business days of the receipt of the accounting firm’s determination.
If a reduction in Payments is required, such reduction shall be effectuated within
thirty (30) business days of the receipt of the accounting firm’s determination. Within
ten (10) business days after the accounting firm delivers its determination to
Employee, Employee will have the right to dispute the determination. The existence of a
dispute will not in any way affect Employee’s right to receive a Gross-Up Payment in
accordance with the determination. If there is no dispute, the determination will be
binding, final, and conclusive upon Company and Employee. If there is a dispute,
Company and Employee will together select a second accounting firm, which will review
the determination and Employee’s basis for the dispute and then will render its own
determination, which will be binding, final, and conclusive on Company and on Employee
for purposes of determining whether a Gross-Up Payment is required pursuant to this
Subsection 10(b) or whether a reduction to the Scaled Back Amount is required, as the
case may be. If as a result of any dispute pursuant to this Subsection 10(b) a
Gross-Up Payment is made or additional Gross-Up Payments are made, such Gross-Up
Payment(s) will be paid by Company to Employee within thirty (30) business days of the
receipt of the second accounting firm’s determination. Company will bear all costs
associated with the second accounting firm’s determination, unless such determination
does not result in additional Gross-Up Payments to Employee or unless such
determination does not mitigate the reduction in Payments required to arrive at the
Scaled Back Amount, in which case all such costs will be borne by Employee.

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	 	(c)	 	For purposes of determining the amount of the Gross-Up Payment and, if
applicable, the Scaled Back Amount, Employee will be deemed to pay federal income taxes
at the highest marginal rate of federal income taxation in the calendar year in which
the Gross-Up Payment is to be made or the Scaled Back Amount is determined, as the case
may be, and applicable state and local income taxes at the highest marginal rate of
taxation in the state and locality of Employee’s residence on the date of termination
of Employee’s employment, net of the maximum reduction in federal income taxes that
would be obtained from deduction of those state and local taxes.
	 
	 	(d)	 	As a result of the uncertainty in the application of Section 4999 of the Code,
it is possible that Gross-Up Payments which will not have been made by Company should
have been made, Employee’s Payments will be reduced to the Scaled Back Amount when they
should not have been or Employee’s Payments are reduced to a greater extent than they
should have been (an “Underpayment”) or Gross-Up Payments are made by Company which
should not have been made, Employee’s Payments are not reduced to the Scaled Back
Amount when they should have been or they are not reduced to the extent they should
have been (an “Overpayment”). If it is determined that an Underpayment has occurred,
the accounting firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code) shall be promptly paid by Company to or for the benefit of
Employee. If it is determined that an Overpayment has occurred, the accounting firm
shall determine the amount of the Overpayment that has occurred and any such
Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the
Code) shall be promptly paid by Employee (to the extent he has received a refund if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for the
benefit of Company; provided, however, that if Company determines that such repayment
obligation would be or result in an unlawful extension of credit under Section 13(k) of
the Exchange Act, repayment shall not be required. Employee shall cooperate, to the
extent his expenses are reimbursed by Company, with any reasonable requests by Company
in connection with any contest or disputes with the Internal Revenue Service in
connection with the Excise Tax.
	 
	 	(e)	 	Employee shall notify Company in writing of any claim by the Internal Revenue
Service that, if successful, would require a payment resulting in an Underpayment. Such
notification shall be given as soon as practicable but no later than ten (10) business
days after Employee is informed in writing of such claim and shall apprise Company of
the nature of such claim and the date on which such claim is requested to be paid.
Employee shall not pay such claim prior to the expiration of the thirty (30) day period
following the date on which he gives such notice to Company (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due). If
Company notifies Employee in writing prior to the expiration of such period that it
desires to contest such claim, Employee shall: (i) give Company any information
reasonably requested by Company relating to such claim; (ii) take such action in
connection with

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	 	 	 	contesting such claim as Company shall reasonably request in writing from time to
time, including, without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by Company; (iii) cooperate with
Company in good faith in order effectively to contest such claim; and (iv) permit
Company to participate in any proceeding relating to such claim; provided, however,
that Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold Employee harmless, on an after-tax basis, for any Excise
Tax or income tax (including related interest and penalties) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Subsection 10(e), Company shall control all proceedings
taken in connection with such contest and, at its sole option, may pursue or forgo
any and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either direct
Employee to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Employee agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in one or
more appellate courts, as Company shall determine; provided, however, that if
Company directs Employee to pay such claim and sue for a refund, Company shall
advance the amount of such payment to Employee, on an interest-free basis and shall
indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or
income tax (including related interest or penalties) imposed with respect to such
advance or with respect to any imputed income with respect to such advance.
Company’s control of the contest shall be limited to issues that may impact Gross-Up
Payments or reduction in Payments under this Section 10, and Employee shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.
	 
	 	(f)	 	If, after the receipt by Employee of an amount advanced by Company pursuant to
Subsection 10(e), Employee becomes entitled to receive any refund with respect to such
claim, Employee shall (subject to Company’s complying with the requirements of
Subsection 10(e)) promptly pay to Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the
receipt by Employee of an amount advanced by Company pursuant to Subsection 10(e), a
determination is made that Employee shall not be entitled to any refund with respect to
such claim and Company does not notify Employee in writing of its intent to contest
such denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to be
repaid.
	 
	 	(g)	 	Any payment under this Section 10 must be made by Company no later than the end
of the Employee’s tax year following the Employee’s tax year in which the Employee
remits the related tax payments.

     11. Non-Delegation of Employee’s Rights. The obligations, rights and benefits of
Employee hereunder are personal and may not be delegated, assigned or transferred in any

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manner whatsoever, nor are such obligations, rights or benefits subject to involuntary
alienation, assignment or transfer.

     12. Confidential Information. Employee acknowledges that he will occupy a position of
trust and confidence and will have access to and learn substantial information about Company and
its affiliates and their operations that is confidential or not generally known in the industry
including, without limitation, information that relates to purchasing, sales, customers, marketing,
and the financial positions and financing arrangements of Company and its affiliates. Employee
agrees that all such information is proprietary or confidential, or constitutes trade secrets and
is the sole property of Company and/or its affiliates, as the case may be. Employee will keep
confidential, and will not reproduce, copy or disclose to any other person or firm, any such
information or any documents or information relating to Company’s or its affiliates’ methods,
processes, customers, accounts, analyses, systems, charts, programs, procedures, correspondence or
records, or any other documents used or owned by Company or any of its affiliates, nor will
Employee advise, discuss with or in any way assist any other person, firm or entity in obtaining or
learning about any of the items described in this Section 12. Accordingly, Employee agrees that
during the Employment Term and at all times thereafter he will not disclose, or permit or encourage
anyone else to disclose, any such information, nor will he utilize any such information, either
alone or with others, outside the scope of his duties and responsibilities with Company and its
affiliates.

     13. Non-Competition.

	 	(a)	 	During Employment Term Employee agrees that, during the Employment
Term, he will devote such business time, attention and energies reasonably necessary to
the diligent and faithful performance of the services to Company and its affiliates,
and he will not engage in any way whatsoever, directly or indirectly, in any business
that is a direct competitor with Company’s or its affiliates’ principal business, nor
solicit customers, suppliers or employees of Company or affiliates on behalf of, or in
any other manner work for or assist any business which is a direct competitor with
Company’s or its affiliates’ principal business. In addition, during the Employment
Term, Employee will undertake no planning for or organization of any business activity
competitive with the work he performs as an employee of Company, and Employee will not
combine or conspire with any other employee of Company or any other person for the
purpose of organizing any such competitive business activity.
	 
	 	(b)	 	After Employment Term. The parties acknowledge that Employee will
acquire substantial knowledge and information concerning the business of Company and
its affiliates as a result of his employment. The parties further acknowledge that the
scope of business in which Company and its affiliates are engaged as of the Effective
Date is national and very competitive and one in which few companies can successfully
compete. Competition by Employee in that business after the Employment Term would
severely injure Company and its affiliates. Accordingly, for a period of one (1) year
after Employee’s employment terminates for any reason whatsoever, except as otherwise
stated herein below, Employee agrees: (1) not to become an employee, consultant,
advisor, principal, partner or

11

 

	 	 	 	substantial shareholder of any firm or business that directly competes with Company
or its affiliates in their principal products and markets; and (2), on behalf of any
such competitive firm or business, not to solicit any person or business that was at
the time of such termination and remains a customer or prospective customer, a
supplier or prospective supplier, or an employee of Company or an affiliate.
Notwithstanding any of the foregoing provisions to the contrary, Employee shall not
be subject to the restrictions set forth in this Subsection 13(b) if: (i) Employee’s
employment is terminated by Company without Cause; (ii) Employee terminates
employment for Good Reason; or (iii) Employee’s employment is terminated as a result
of Company’s unwillingness to extend the Employment Term.
	 
	 	(c)	 	Exclusion. Working, directly or indirectly, for any of the following
entities shall not be considered competitive to Company or its affiliates for the
purpose of this Section 13: (i) Fidelity National Financial, Inc., its affiliates or
their successors; (ii) the Lender Processing Services division of Fidelity National
Information Services, Inc. or its affiliates following the spin-off publicly announced
on October 25, 2007, its affiliates or their successors; or (iii) Fidelity National
Information Services, Inc. or its affiliates or their successors if this Agreement is
assumed by a third party as contemplated in Section 21.

     14. Return of Company Documents. Upon termination of the Employment Term, Employee
shall return immediately to Company all records and documents of or pertaining to Company or its
affiliates and shall not make or retain any copy or extract of any such record or document, or any
other property of Company or its affiliates.

     15. Improvements and Inventions. Any and all improvements or inventions that Employee
may make or participate in during the Employment Term, unless wholly unrelated to the business of
Company and its affiliates and not produced within the scope of Employee’s employment hereunder,
shall be the sole and exclusive property of Company. Employee shall, whenever requested by Company,
execute and deliver any and all documents that Company deems appropriate in order to apply for and
obtain patents or copyrights in improvements or inventions or in order to assign and/or convey to
Company the sole and exclusive right, title and interest in and to such improvements, inventions,
patents, copyrights or applications.

     16. Actions. The parties agree and acknowledge that the rights conveyed by this
Agreement are of a unique and special nature and that Company will not have an adequate remedy at
law in the event of a failure by Employee to abide by its terms and conditions, nor will money
damages adequately compensate for such injury. Therefore, it is agreed between and hereby
acknowledged by the parties that, in the event of a breach by Employee of any of the obligations of
this Agreement, Company shall have the right, among other rights, to damages sustained thereby and
to obtain an injunction or decree of specific performance from any court of competent jurisdiction
to restrain or compel Employee to perform as agreed herein. Employee hereby acknowledges that
obligations under Sections and Subsections 12, 13(b), 14, 15, 16, 17 and 18 shall survive the
termination of employment and be binding by their terms at all times subsequent to the termination
of employment for the periods specified therein. Nothing herein shall in any way limit or exclude
any other right granted by law or equity to Company.

12

 

     17. Release. Notwithstanding any provision herein to the contrary, Company may
require that, prior to payment of any amount or provision of any benefit under Section 9 or payment
of any Gross-Up Payment pursuant to Section 10 of this Agreement (other than due to Employee’s
death), Employee shall have executed a complete release of Company and its affiliates and related
parties in such form as is reasonably required by Company, and any waiting periods contained in
such release shall have expired. With respect to any release required to receive payments owed
pursuant to Section 9, Company must provide Employee with the form of release no later than seven
(7) days after the Date of Termination and the release must be signed by Employee and returned to
Company, unchanged, effective and irrevocable, no later than sixty (60) days after the Date of
Termination.

     18. No Mitigation. Company agrees that, if Employee’s employment hereunder is
terminated during the Employment Term, Employee is not required to seek other employment or to
attempt in any way to reduce any amounts payable to Employee by Company hereunder. Further, the
amount of any payment or benefit provided for hereunder (other than pursuant to Subsection 9(a)(v)
hereof) shall not be reduced by any compensation earned by Employee as the result of employment by
another employer, by retirement benefits or otherwise.

     19. Entire Agreement and Amendment. This Agreement embodies the entire agreement and
understanding of the parties hereto in respect of the subject matter of this Agreement, and
supersedes and replaces all prior agreements, understandings and commitments with respect to such
subject matter. This Agreement may be amended only by a written document signed by both parties to
this Agreement.

     20. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Florida, excluding any conflicts or choice of law rule or principle
that might otherwise refer construction or interpretation of this Agreement to the substantive law
of another jurisdiction. Any litigation pertaining to this Agreement shall be adjudicated in courts
located in Duval County, Florida.

     21. Successors. This Agreement may not be assigned by Employee. In addition to any
obligations imposed by law upon any successor to Company, Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the stock, business and/or assets of Company, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that Company would be required to
perform it if no such succession had taken place. Failure of Company to obtain such assumption by
a successor shall be a material breach of this Agreement. Employee agrees and consents to any such
assumption by a successor of Company, as well as any assignment of this Agreement by Company for
that purpose. As used in this Agreement, “Company” shall mean Company as herein before defined as
well as any such successor that expressly assumes this Agreement or otherwise becomes bound by all
of its terms and provisions by operation of law.

     22. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.

13

 

     23. Attorneys’ Fees. If any party finds it necessary to employ legal counsel or to
bring an action at law or other proceedings against the other party to interpret or enforce any of
the terms hereof, the party prevailing in any such action or other proceeding shall be promptly
paid by the other party its reasonable legal fees, court costs, litigation expenses, all as
determined by the court and not a jury, and such payment shall be made by the non-prevailing party
no later than the end of the Employee’s tax year following the Employee’s tax year in which the
payment amount becomes known and payable; provided, however, that on or after a Change in Control,
and following Employee’s termination of employment with the Company, if any party finds it
necessary to employ legal counsel or to bring an action at law or other proceedings against the
other party to interpret or enforce any of the terms hereof, Company shall pay (on an ongoing
basis) to Employee to the fullest extent permitted by law, all legal fees, court costs and
litigation expenses reasonably incurred by Employee or others on his behalf (such amounts
collectively referred to as the “Reimbursed Amounts”); provided, further, that Employee shall
reimburse Company for the Reimbursed Amounts if it is determined that a majority of Employee’s
claims or defenses were frivolous or without merit. Requests for payment of Reimbursed Amounts,
together with all documents required by the Company to substantiate them, must be submitted to
Company no later than ninety (90) days after the expense was incurred. The Reimbursed Amounts shall
be paid by Company within ninety (90) days after receiving the request and all substantiating
documents requested from Employee. The payment of Reimbursed Amounts during Employee’s tax year
will not impact the Reimbursed Amounts for any other taxable year. The rights under this Section 23
shall survive the termination of employment and this Agreement until the expiration of the
applicable statute of limitations.

     24. Severability. If any section, subsection or provision hereof is found for any
reason whatsoever to be invalid or inoperative, that section, subsection or provision shall be
deemed severable and shall not affect the force and validity of any other provision of this
Agreement. If any covenant herein is determined by a court to be overly broad thereby making the
covenant unenforceable, the parties agree and it is their desire that such court shall substitute a
reasonable judicially enforceable limitation in place of the offensive part of the covenant and
that as so modified the covenant shall be as fully enforceable as if set forth herein by the
parties themselves in the modified form. The covenants of Employee in this Agreement shall each be
construed as an agreement independent of any other provision in this Agreement, and the existence
of any claim or cause of action of Employee against Company, whether predicated on this Agreement
or otherwise, shall not constitute a defense to the enforcement by Company of the covenants in this
Agreement.

     25. Notices. Any notice, request, or instruction to be given hereunder shall be in
writing and shall be deemed given when personally delivered or three (3) days after being sent by
United States Certified Mail, postage prepaid, with Return Receipt Requested, to the parties at
their respective addresses set forth below:

To Company:

Fidelity National Information Services, Inc.

601 Riverside Avenue

Jacksonville, FL 32204

Attention: General Counsel

14

 

To Employee:

Dan Scheuble

Fidelity National Information Services, Inc.

601 Riverside Avenue

Jacksonville, FL 32204

     26. Waiver of Breach. The waiver by any party of any provisions of this Agreement
shall not operate or be construed as a waiver of any prior or subsequent breach by the other party.

     27. Tax Withholding. Company or an affiliate may deduct from all compensation and
benefits payable under this Agreement any taxes or withholdings Company is required to deduct
pursuant to state, federal or local laws.

     28. Code Section 409A. To the extent applicable, it is intended that this Agreement
and any payment made hereunder shall comply with the requirements of Section 409A of the Code, and
any related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service (“Code Section 409A”). Any provision
that would cause the Agreement or any payment hereof to fail to satisfy Code Section 409A shall
have no force or effect until amended to comply with Code Section 409A, which amendment may be
retroactive to the extent permitted by Code Section 409A.

     IN WITNESS WHEREOF the parties have executed this Agreement to be effective as of the date
first set forth above.

	 	 	 	 	 
	 	FIDELITY NATIONAL INFORMATION SERVICES, INC.

 	 
	 	By:  	/s/ Lee A. Kennedy
 	 
	 	 	Its:  President and Chief Executive Officer 	 
	 	 	 	 
	 
	 	DAN SCHEUBLE

 	 
	 	/s/ Daniel T. Scheuble
 	 
	 	 	 
	 	 	 
	 

15exv10w96

Exhibit 10.96

ADVISORY AGREEMENT

Among

HINES REIT PROPERTIES, L.P.,

HINES ADVISORS LIMITED PARTNERSHIP,

and

HINES REAL ESTATE INVESTMENT TRUST, INC.

                          , 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE 1 DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2 APPOINTMENT	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE 3 DUTIES OF THE ADVISOR	 	 	5	 
	3.01
	 	Offering Services.	 	 	5	 
	3.02
	 	Acquisition Services.	 	 	6	 
	3.03
	 	Asset Management Services.	 	 	7	 
	3.04
	 	Shareholder Services.	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE 4 AUTHORITY OF THE ADVISOR	 	 	11	 
	4.01
	 	General.	 	 	11	 
	4.02
	 	Powers of the Advisor	 	 	11	 
	4.03
	 	Approval by Directors	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 5 BANK ACCOUNTS	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 6 RECORDS AND FINANCIAL STATEMENTS	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 7 LIMITATION ON ACTIVITIES	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE 8 RELATIONSHIP WITH DIRECTORS AND OFFICERS	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE 9 FEES	 	 	15	 
	9.01
	 	Acquisition Fees	 	 	15	 
	9.02
	 	Asset Management Fees	 	 	15	 
	9.03
	 	Debt Financing Fees	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 10 EXPENSES	 	 	16	 
	10.01
	 	General	 	 	16	 
	10.02
	 	Reimbursement to Advisor	 	 	18	 
	10.03
	 	Reimbursement to Company	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE 11 OTHER SERVICES	 	 	19	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE 12 RELATIONSHIP OF THE ADVISOR AND COMPANY;
OTHER ACTIVITIES OF THE ADVISOR	 	 	20	 
	12.01
	 	Relationship	 	 	20	 
	12.02
	 	Time Commitment	 	 	20	 
	12.03
	 	Investment Opportunities and Allocation	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE 13 THE HINES NAME	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE 14 TERM AND TERMINATION OF THE AGREEMENT	 	 	22	 
	14.01
	 	Term	 	 	22	 
	14.02
	 	Termination by Either Party	 	 	22	 
	14.03
	 	Termination by the Company	 	 	22	 
	14.04
	 	Termination by the Advisor	 	 	23	 
	14.05
	 	Payments on Termination and Survival of Certain Rights and Obligations	 	 	23	 
	14.06
	 	Repurchase of Units	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE 15 ASSIGNMENT	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE 16 INDEMNIFICATION AND LIMITATION OF LIABILITY	 	 	25	 
	16.01
	 	Indemnification by the Company	 	 	25	 
	16.02
	 	Indemnification by the Advisor	 	 	26	 
	16.03
	 	The Advisor’s Liability.	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE 17 MISCELLANEOUS	 	 	29	 
	17.01
	 	Notices	 	 	29	 
	17.02
	 	Modification	 	 	29	 
	17.03
	 	Severability	 	 	30	 
	17.04
	 	Construction	 	 	30	 
	17.05
	 	Entire Agreement	 	 	30	 
	17.06
	 	Waiver	 	 	30	 
	17.07
	 	Gender	 	 	31	 
	17.08
	 	Titles Not to Affect Interpretation	 	 	31	 
	17.09
	 	Counterparts	 	 	31	 

ii

 

ADVISORY AGREEMENT

     This Advisory Agreement (this “Agreement”), dated as of                           , 2008, is among
Hines REIT Properties, L.P., a Delaware limited partnership, Hines Advisors Limited Partnership, a
Texas limited partnership, and Hines Real Estate Investment Trust, Inc., a Maryland corporation.

W I T N E S S E T H

     WHEREAS, the Company (as hereinafter defined) desires to avail itself of the knowledge,
experience, sources of information, advice, assistance and certain facilities available to the
Advisor (hereinafter defined) and to have the Advisor undertake the duties and responsibilities
hereinafter set forth herein on the terms set forth in this Agreement; and

     WHEREAS, the Advisor is willing to undertake to render such services on the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

     The following defined terms used in this Agreement shall have the meanings specified below:

“Acquisition Expenses” has the meaning set forth in the Articles of Incorporation.

     “Advisor” means (i) Hines Advisors Limited Partnership, a Texas limited partnership,
or (ii) any successor advisor to the Company.

 

 

     “Affiliate” has the meaning set forth in the Articles of Incorporation. For the
purposes of this Agreement, the Advisor shall not be deemed to be an Affiliate of the Company, and
vice versa.

     “Articles of Incorporation” means the Second Amended and Restated Articles of
Incorporation of the General Partner, as amended from time to time.

     “Asset” or “Assets” means any and all real estate investments (real, personal
or otherwise), tangible or intangible, owned or held by, or for the account of, the Company,
whether directly or indirectly through another entity or entities, including interests in any
Person or in joint ventures which directly or indirectly own real estate investments.

     “Board of Directors” means the Board Directors of the General Partner.

     “Bylaws” means the Amended and Restated Bylaws of the General Partner, as amended from
time to time.

     “Cash Amount” has the meaning set forth in the Limited Partnership Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean such provision as in
effect from time to time, as the same may be amended, and any successor provision thereto, as
interpreted by any applicable regulations as in effect from time to time.

     “Company” means Hines REIT Properties, L.P., a Delaware limited partnership. Within
the context of discussions of the operations, business and administration of the Company, the term
“Company” shall mean, collectively, Hines REIT Properties, L. P. and the General Partner for the
purposes of this Agreement.

     “Director” means a member of the Board of Directors of the General Partner.

2

 

     “General Partner” means Hines Real Estate Investment Trust, Inc., a Maryland
corporation and general partner of the Company.

     “Gross Proceeds” has the meaning set forth in the Articles of Incorporation.

     “Hines” means Hines Interests Limited Partnership and its Affiliates.

     “Independent Director” has the meaning set forth in the Articles of Incorporation.

     “Initial Asset Value” means (i) in the case of an Asset other than a loan or other
financing, the gross purchase price of real estate investments acquired directly by the Company,
including any debt attributable to such investments, or the pro rata share of the gross asset value
of real estate investments held by entities in which the Company invests, and (ii) in the case of a
loan or other financing, the total amount of the funds advanced.

     “Initial Investment” means a real estate investment made by the Company after the
commencement of the Third Offering up to an aggregate of $2,000,000,000 in real estate investments.

     “Limited Partnership Agreement” means the Amended and Restated Limited Partnership
Agreement of Hines REIT Properties, L.P., as the same may be amended and restated from time to
time.

     “Managing Dealer” means Hines Real Estate Securities, Inc., a Delaware corporation, or
such other entity selected by the Board of Directors to act as the managing dealer for the
Offering.

     “Offering” means a public offering of Shares pursuant to any Prospectus.

     “Operating Expenses” has the meaning set forth in the Articles of Incorporation.

     “Organizational and Offering Expenses” has the meaning set forth in the Articles of
Incorporation.

3

 

     “Participation Interest” has the meaning set forth in the Limited Partnership
Agreement.

     “Person” means an individual, corporation, partnership, estate, trust, a portion of a
trust permanently set aside for or to be used exclusively for the purposes described in Section
642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the
Code, joint stock company or other entity.

     “Property Manager” means Hines Interests Limited Partnership, a Texas limited
partnership, or an Affiliate thereof.

     “Property Management and Leasing Agreement” means any Property Management and Leasing
Agreement between the Company and the Property Manager.

     “Prospectus” means the General Partner’s final prospectus for any public offering
within the meaning of Section 2(10) of the Securities Act of 1933, as amended.

     “REIT” means a “real estate investment trust” under Sections 856 through 860 of the
Code.

     “REIT Shares Amount” has the meaning set forth in the Limited Partnership Agreement.

     “Securities” means any class or series of units or shares of the Company or the
General Partner, including common shares or preferred units or shares and any other evidences of
equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or
other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “securities” or any certificates of interest, shares
or participations in, temporary or interim certificates for, receipts for, guarantees of, or
warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

     “Shares” means shares of common stock of the General Partner, par value $.001 per
share.

4

 

     “Shareholders” means the registered holders of the outstanding Shares.

     “Subsequent Investment” means a real estate investment made by the Company after it
has acquired $2,000,000,000 in Initial Investments.

     “Termination Date” means the date of termination of this Agreement.

     “Third Offering” means the offering by the General Partner on Form S-11
(Reg. No.                     ) of up to $3,500,000,000 Shares, including $500,000,000 Shares offered pursuant to the
General Partner’s dividend reinvestment plan.

     “2%/25% Guidelines” has the meaning set forth in the Articles of Incorporation.

     “Units” has the meaning set forth in the Limited Partnership Agreement.

ARTICLE 2

APPOINTMENT

     The Company hereby appoints the Advisor to serve as its advisor on the terms and conditions
set forth in this Agreement, and the Advisor hereby accepts such appointment.

ARTICLE 3

DUTIES OF THE ADVISOR

     The Advisor is responsible for managing, operating, directing and supervising the operations
and administration of the Company and its Assets to the fullest extent allowed by law. The Advisor
shall, either directly or by engaging an Affiliate or third party, perform the following duties:

     3.01 Offering Services. The Advisor shall manage and supervise:

     (i) Development of the product offering, including the determination of the specific
terms of the Securities to be offered by the General Partner and/or the

5

 

Company, preparation of all offering and related documents, and obtaining all required
regulatory approvals of such documents;

     (ii) Along with the Managing Dealer, approval of the participating broker dealers and
negotiation of the related selling agreements;

     (iii) Coordination of the due diligence process relating to participating broker
dealers and their review of any Prospectus and other Offering and Company documents;

     (iv) Preparation and approval of all marketing materials contemplated to be used by the
Managing Dealer or others in the Offering of the General Partner’s Securities;

     (v) Along with the Managing Dealer, negotiation and coordination with the transfer
agent for the receipt, collection, processing and acceptance of subscription agreements,
commissions, and other administrative support functions;

     (vi) Creation and implementation of various technology and electronic communications
related to the Offering of the General Partner’s Securities; and

     (vii) All other services related to organization of the Company or the Offering,
whether performed and incurred by the Advisor or its Affiliates.

     3.02 Acquisition Services.

     (i) Serve as the Company’s investment and financial advisor and provide relevant market
research and economic and statistical data in connection with the Company’s Assets and
investment objectives and policies;

     (ii) Subject to Section 4.03 and Article 7 hereof and the investment objectives and
policies of the Company: (a) locate, analyze and select potential

6

 

investments; (b) structure and negotiate the terms and conditions of transactions
pursuant to which investments in Assets will be made; (c) acquire Assets on behalf of the
Company; and (d) arrange for financing on behalf of the Company;

     (iii) Perform due diligence on prospective investments and create due diligence reports
summarizing the results of such work;

     (iv) Prepare reports regarding prospective investments which include recommendations
and supporting documentation necessary for the Directors to evaluate the proposed
investments;

     (v) Obtain reports (which may be prepared by the Advisor or its Affiliates), where
appropriate, concerning the value of contemplated investments of the Company; and

     (vi) Negotiate and execute approved investments, loans, debt financing and other
transactions.

     3.03 Asset Management Services.

     (i) Real Estate Services:

     (a) Investigate, select, and, on behalf of the Company, engage and conduct
business with such Persons as the Advisor deems necessary to the proper performance
of its obligations hereunder, including but not limited to consultants, accountants,
lenders, technical advisors, attorneys, brokers, underwriters, corporate
fiduciaries, escrow agents, depositaries, custodians, agents for collection,
insurers, insurance agents, developers, construction companies and any and all
Persons acting in any other capacity deemed by the Advisor necessary or desirable
for the performance of any of the foregoing services;

7

 

     (b) Negotiate and service the Company’s debt facilities and other financings;

     (c) Monitor applicable markets and obtain reports (which may be prepared by the
Advisor or its Affiliates) where appropriate, concerning the value of investments of
the Company;

     (d) Monitor and evaluate the performance of investments of the Company; provide
daily management services to the Company and perform and supervise the various
management and operational functions related to the Company’s investments;

     (e) Coordinate with the Property Manager on its duties under any Property
Management and Leasing Agreement and assist in obtaining all necessary approvals of
major property transactions as governed by the applicable Property Management and
Leasing Agreement;

     (f) Coordinate and manage relationships between the Company and any joint
venture partners;

     (g) Consult with the officers and Directors of the General Partner and provide
assistance with the evaluation and approval of potential property dispositions,
sales or refinancings;

     (ii) Accounting and Other Administrative Services:

     (a) Manage and perform the various administrative functions necessary for the
management of the day-to-day operations of the Company;

8

 

     (b) From time-to-time, or at any time reasonably requested by the Directors,
make reports to the Directors on the Advisor’s performance of services to the
Company under this Agreement;

     (c) Coordinate with the Company’s independent accountants and auditors to
prepare and deliver to the General Partner’s audit committee an annual report
covering the Advisor’s compliance with certain material aspects of this Advisory
Agreement;

     (d) Provide or arrange for administrative services and items, legal and other
services, office space, office furnishings, personnel and other overhead items
necessary and incidental to the Company’s business and operations;

     (e) Provide financial and operational planning services and portfolio
management functions;

     (f) Maintain accounting data and any other information requested concerning the
activities of the Company as shall be required to prepare and to file all periodic
financial reports and returns required to be filed with the Securities and Exchange
Commission and any other regulatory agency, including annual financial statements;

     (g) Maintain all appropriate books and records of the Company;

     (h) Provide tax and compliance services and coordinate with appropriate third
parties, including independent accountants and other consultants, on related tax
matters;

9

 

     (i) Supervise the performance of such ministerial and administrative functions
as may be necessary in connection with the daily operations of the Assets;

     (j) Provide the Company with all necessary cash management services;

     (k) Manage and coordinate with the transfer agent the quarterly dividend
process and payments to shareholders;

     (l) Consult with the officers and Directors of the General Partner and assist
the Directors in evaluating and obtaining adequate insurance coverage based upon
risk management determinations;

     (m) Provide the officers and Directors of the General Partner with timely
updates related to the overall regulatory environment affecting the Company, as well
as managing compliance with such matters, including but not limited to compliance
with the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”);

     (n) Consult with the officers and Directors of the General Partner and the
Board of Directors relating to the corporate governance structure and appropriate
policies and procedures related thereto; and

     (o) Perform all reporting, record keeping, internal controls and similar
matters in a manner to allow the General Partner to comply with applicable law,
including the Sarbanes-Oxley Act.

10

 

     3.04 Shareholder Services.

     (i) Manage communications with shareholders, including answering phone calls, preparing
and sending written and electronic reports and other communications; and

     (ii) Establish technology infrastructure to assist in providing shareholder support and
service.

ARTICLE 4

AUTHORITY OF THE ADVISOR

     4.01 General. All rights and powers to manage and control the day-to-day business and
affairs of the Company shall be vested in the Advisor to the fullest extent allowed by law. The
Advisor shall have the power to delegate all or any part of its rights and powers to manage and
control the business and affairs of the Company to such officers, employees, Affiliates, agents and
representatives of the Advisor or the Company as it may from time to time deem appropriate. Any
authority delegated by the Advisor to any other Person shall be subject to applicable law and the
limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the
Articles of Incorporation.

     4.02 Powers of the Advisor. Subject to the express limitations set forth in this
Agreement, the power to direct the management, operation and policies of the Company shall to the
fullest extent allowed by law be vested in the Advisor, which shall have the power by itself and
shall be authorized and empowered on behalf and in the name of the Company to carry out any and all
of the objectives and purposes of the Company and to perform all acts and enter into and perform
all contracts and other undertakings that it may in its sole discretion deem necessary, advisable
or incidental thereto to perform its obligations under this Agreement.

11

 

     4.03 Approval by Directors. 

     (i) Notwithstanding the foregoing, any investment in Assets, including any acquisition
of an Asset by the Company or any investment by the Company in a joint venture, limited
partnership or similar entity owning real properties, will require the prior approval of the
Board of Directors. The Advisor will deliver to the Board of Directors all documents
required by it to properly evaluate the proposed investment.

     (ii) If the Articles of Incorporation require that a transaction be approved by the
Independent Directors, the Advisor will deliver to the Independent Directors all documents
required by them to properly evaluate the proposed investment in the Asset. The prior
approval of a majority of the Independent Directors will be required for each transaction
between the Company and the Advisor or its Affiliates.

ARTICLE 5

BANK ACCOUNTS

     The Advisor will maintain one or more bank accounts in the name of the Company and will
collect and deposit into any such account or accounts, and disburse from any such account or
accounts, any money on behalf of the Company. Notwithstanding the foregoing, no funds shall be
commingled with the funds of the Advisor.

ARTICLE 6

RECORDS AND FINANCIAL STATEMENTS

     The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate
and separate books and records for the Company’s operations in accordance with United States
generally accepted accounting principles (“GAAP”), which shall be supported by sufficient
documentation to ascertain that such books and records are properly and accurately

12

 

recorded. Such books and records shall be the property of the Company. Such books and
records shall include all information necessary to calculate and audit the fees or reimbursements
paid under this Agreement. The Advisor shall utilize procedures to attempt to ensure such control
over accounting and financial transactions as is reasonably required to protect the Company’s
assets from theft, error or fraudulent activity. All financial statements that the Advisor
delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, except for
special financial reports which by their nature require a deviation from GAAP. The Advisor shall
maintain the necessary liaison with the Company’s independent accountants and shall provide such
accountants with such reports and other information as the Company shall request.

ARTICLE 7

LIMITATION ON ACTIVITIES

     Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take
any action which, in its sole judgment made in good faith, would (i) adversely affect the ability
of the General Partner to qualify or continue to qualify to be taxed as a REIT, (ii) subject the
Company or the General Partner to regulation under the Investment Company Act of 1940, as amended,
(iii) violate any law, rule or regulation of any governmental body or agency having jurisdiction
over the Company, the General Partner or their Securities, or (iv) violate the Articles of
Incorporation or Bylaws. In the event that an action that would violate (i) through (iv) of the
preceding sentence has been ordered by the Board of Directors acting on behalf of the General
Partner, the Advisor shall notify the Board of Directors of the Advisor’s judgment of the potential
impact of such action and shall refrain from taking such action until it receives further
clarification or instructions from the Board of Directors. In such event the Advisor shall, to the

13

 

fullest extent allowed by law, have no liability for acting in accordance with the specific
instructions of the Board of Directors so given. Notwithstanding the foregoing, none of the
Advisor, its Affiliates and none of their managers, directors, officers, employees and
equityholders, shall be liable to the Company, the General Partner, the Board of Directors or the
Shareholders for any act or omission by such Persons or individuals, except as provided in this
Agreement. THE PARTIES HERETO INTEND THAT THE LIMITATION OF LIABILITY SET FORTH IN THIS SECTION BE
CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY. WITHOUT
LIMITING THE FOREGOING, THE LIMITATION OF LIABILITY SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW,
APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT WOULD DENY
COVERAGE BASED ON A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE, GROSS
NEGLIGENCE OR STRICT LIABILITY. IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN
THIS SECTION, THE LIMITATION OF LIABILITY SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY
LAW, APPLY TO A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE, GROSS
NEGLIGENCE OR STRICT LIABILITY. THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR
PURPOSES OF ALL STATE LAWS.

14

 

ARTICLE 8

RELATIONSHIP WITH DIRECTORS AND OFFICERS

     Managers, Directors, officers and employees of the Advisor or any direct or indirect Affiliate
of the Advisor may serve as a Director and as officers of the General Partner, except that no
manager, director, officer or employee of the Advisor or any of its Affiliates who also is a
Director or officer of the General Partner shall receive any compensation from the Company or
General Partner for serving as a Director or officer other than reasonable reimbursement for travel
and related expenses incurred in attending meetings of the Board of Directors.

ARTICLE 9

FEES

     9.01 Acquisition Fees. The Company will pay the Advisor in cash as compensation for
services described in Section 3.02 an acquisition fee of (i) 2.50% of the Initial Asset Value of
each Initial Investment; and (ii) 0.50% of the Initial Asset Value of each Subsequent Investment.
The Company shall also reimburse the Advisor for all out of pocket third party expenses incurred by
the Advisor in connection with such services as required by Article 10. The amount of such
acquisition fees and expenses shall be subject to any limitations contained in the Articles of
Incorporation. The Advisor shall submit an invoice to the Company following the closing or closings
of each acquisition, accompanied by a computation of the fee. The fee shall be payable within ten
business days after receipt of the invoice by the Company.

     9.02 Asset Management Fees. The Company will pay the Advisor in cash as compensation for
services described in Section 3.03 an asset management fee in accordance with this Section 9.02 as
well as reimburse the Advisor for all out of pocket third party expenses incurred by the Advisor in
connection with such services as required by Article 10. Subject to

15

 

any limitations contained in the Articles of Incorporation, this asset management fee shall be
earned monthly and the amount of this asset management fee payable by the Company to the Advisor
shall equal 0.0625% multiplied by the net equity invested in real estate investments as of the end
of the applicable month. The Advisor shall submit a monthly invoice to the Company, accompanied by
a computation of the asset management fee for the applicable period. The asset management fee shall
be payable within ten business days after receipt of the invoice by the Company.

     9.03 Debt Financing Fees. The Company will pay the Advisor in cash as compensation for
services described in Section 3.02 a debt financing fee equal to 1.0% of the amount obtained under
any property loan or made available to us under any other debt financing. In no event will the
debt financing fee be paid more than once in respect of the same debt.

ARTICLE 10

EXPENSES

     10.01 General. In addition to the compensation paid to the Advisor pursuant to Article 9
hereof, the Company shall pay directly or reimburse the Advisor for the following expenses paid or
incurred by the Advisor or Affiliates in connection with the services provided to the Company
pursuant to this Agreement, including, but not limited to:

     (i) Acquisition Expenses incurred in connection with the selection and acquisition of
Assets including such expenses incurred related to assets pursued or considered but not
ultimately acquired by the Company;

     (ii) the actual out-of-pocket cost of goods and services used by the Company or the
General Partner and obtained from entities not Affiliated with the

16

 

Advisor, including brokerage fees paid in connection with the purchase and sale of
Assets;

     (iii) taxes and assessments on income or Assets and taxes as an expense of doing
business and any other taxes otherwise imposed on the Company and its business or income;

     (iv) out-of-pocket costs associated with insurance required in connection with the
business of the Company or by its officers and Directors;

     (v) all out-of-pocket expenses in connection with payments to the Board of Directors
and meetings of the Board of Directors and Shareholders;

     (vi) personnel and related employment direct costs incurred by the Advisor or
Affiliates (a) in performing the services described in Section 3.04 or (b) as otherwise
approved by Independent Directors, including but not limited to salary, benefits, burdens
and overhead of all employees directly involved in the performance of such services, plus
all out-of-pocket costs incurred;

     (vii) out-of-pocket expenses of maintaining communications with Shareholders, including
the cost of preparation, printing, and mailing annual reports and other Shareholder reports,
proxy statements and other reports required by governmental entities;

     (viii) audit, accounting and legal fees, and other fees for professional services
relating to the operations of the Company and all such fees incurred at the request, or on
behalf of, the Independent Directors or any committee of the Board of Directors;

17

 

     (ix) out-of-pocket costs for the Company to comply with all applicable laws,
regulations and ordinances; and

     (x) all other out-of-pocket costs necessary for the operation of the Company and its
Assets incurred by the Advisor in performing its duties hereunder.

     Except as specifically provided for above in (vi) related to shareholder services expenses or
as contemplated by Article 11, the expenses and payments subject to reimbursement by the Company in
this Section 10.01 do not include personnel and related direct employment or overhead costs of the
Advisor or Affiliates. Further, the General Partner shall have no liability with respect to
Organizational and Offering Expenses incurred on its behalf or on behalf of the Company in
connection with the Third Offering. The Advisor shall pay for all such Organizational and Offering
Expenses.

     10.02 Reimbursement to Advisor. Expenses incurred by the Advisor on behalf of the Company
and payable pursuant to this Article 10 shall be reimbursed to the Advisor within 10 days after the
Advisor provides the Company with an invoice and supporting documentation relating to such
reimbursement.

     10.03 Reimbursement to Company. The Company shall not reimburse the Advisor during any
fiscal quarter for Operating Expenses that, in the four consecutive fiscal quarters then ended (the
“Expense Year”), exceed the 2%/25% Guidelines for such year (the “Excess Amount”), unless the
Independent Directors determine that such excess was justified, based on unusual and non-recurring
factors which they deem sufficient, in which case the Excess Amount may be reimbursed. Any Excess
Amount paid to the Advisor during a fiscal quarter without the Independent Directors determining
that such expenses were justified shall be repaid to the Company. Within 60 days after the end of
any fiscal quarter of the Company for which total

18

 

Operating Expenses for the Expense Year exceed the 2%/25% Guidelines and the Independent
Directors determined that such expenses were justified, there shall be sent to the Shareholders a
written disclosure of such fact, together with an explanation of the factors the Independent
Directors considered in determining that such excess expenses were justified. Such determination
shall be reflected in the minutes of the meetings of the Board of Directors. The Company will not
reimburse the Advisor or its Affiliates for services for which the Advisor or its Affiliates are
entitled to compensation in the form of a separate fee.

ARTICLE 11

OTHER SERVICES

     Should (i) the General Partner request that the Advisor or any manager, officer or employee
thereof render services for the Company other than as set forth in this Agreement or (ii) there are
changes to the regulatory environment in which the Advisor or Company operates that would increase
significantly the level of services performed such that the costs and expenses borne by the Advisor
for which the Advisor is not entitled to separate reimbursement for personnel and related
employment direct costs and overhead under Article 10 of this Agreement would increase
significantly, , such services shall be separately compensated at such rates and in such amounts as
are agreed by the Advisor and the Independent Directors, subject to the limitations contained in
the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this
Agreement.

19

 

ARTICLE 12

RELATIONSHIP OF THE ADVISOR AND COMPANY;

OTHER ACTIVITIES OF THE ADVISOR

     12.01 Relationship. To the fullest extent allowed by law, the Company and the Advisor are
not partners or joint venturers with each other, and nothing in this Agreement shall be construed
to make them such partners or joint venturers. Nothing herein contained shall prevent the Advisor
from engaging in other activities, including, without limitation, the rendering of advice to other
Persons and the management of other programs advised, sponsored or organized by the Advisor or its
Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director,
officer, employee, or equityholder of the Advisor or its Affiliates to engage in any other business
or to render services of any kind to any other Person. The Advisor may, with respect to any
investment in which the Company is a participant, also render advice and service to each and every
other participant therein. The Advisor shall promptly disclose to the Board of Directors the
existence of any condition or circumstance, existing or anticipated, of which it has knowledge,
which creates or could create a conflict of interest between the Advisor’s obligations to the
Company and its obligations to or its interest in any other Person.

     12.02 Time Commitment. The Advisor shall, and shall cause its Affiliates and their
respective employees, officers and agents to, devote to the Company such time as shall be
reasonably necessary to conduct the business and affairs of the Company in an appropriate manner
consistent with the terms of this Agreement. The Company acknowledges that the Advisor and other
Affiliates of Hines and their respective employees, officers and agents may also engage in
activities unrelated to the Company and may provide services to Persons other than the Company or
any of its Affiliates.

20

 

     12.03 Investment Opportunities and Allocation. The Advisor shall be required to use
commercially reasonable efforts to present a continuing and suitable investment program to the
Company which is consistent with the investment policies and objectives of the Company, but neither
the Advisor nor any Affiliate of the Advisor shall be obligated generally to present any particular
investment opportunity to the Company even if the opportunity is of character which, if presented
to the Company, could be taken by the Company. In the event an investment opportunity is located,
the allocation procedure set forth under the caption “Conflicts of Interest—Competitive Activities
of Hines and its Affiliates” in any Prospectus (as may be amended from time to time) shall govern
the allocation of the opportunity among the Company and Affiliates of the Advisor.

ARTICLE 13

THE HINES NAME

     The Advisor, Hines and their Affiliates have a proprietary interest in the name “Hines”. The
Advisor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free
right and license to use the name “Hines” during the term of this Agreement. Accordingly, and in
recognition of this right, if at any time the Company ceases to retain Hines or an Affiliate
thereof to perform the services of the Advisor, the Company (including the General Partner) will,
promptly after receipt of written request from Hines, cease to conduct business under or use the
name “Hines” or any derivative thereof and the Company and the General Partner shall change the
name of the Company and the General Partner to a name that does not contain the name “Hines” or any
other word or words that might, in the reasonable discretion of the Advisor, be susceptible of
indication of some form of relationship between the Company and the Advisor or any Affiliate
thereof. At such time, the Company will also make

21

 

any changes to any trademarks, servicemarks or other marks necessary to remove any references
to the word “Hines”. Consistent with the foregoing, it is specifically recognized that the Advisor
or one or more of its Affiliates has in the past and may in the future organize, sponsor or
otherwise permit to exist other investment vehicles (including vehicles for investment in real
estate) and financial and service organizations having “Hines” as a part of their name, all without
the need for any consent (and without the right to object thereto) by the Company or the General
Partner.

ARTICLE 14

TERM AND TERMINATION OF THE AGREEMENT

     14.01 Term. This Agreement shall have an initial term of one year from the date of the
Agreement. This Agreement may be renewed for an unlimited number of successive one-year terms upon
mutual consent of the parties. Any such renewal must be approved by a majority of the Independent
Directors. The General Partner (through the Independent Directors) will evaluate the performance
of the Advisor annually before renewing the Agreement, and each such renewal shall be for a term of
no more than one year.

     14.02 Termination by Either Party. This Agreement may be terminated upon 60 days’ written
notice without cause or penalty by either party.

     14.03 Termination by the Company. This Agreement may be terminated immediately by the
Company upon (i) any fraudulent conduct, criminal conduct, willful misconduct or the negligent
breach of fiduciary duty of or by the Advisor, (ii) a material breach of this Agreement by the
Advisor not cured within 10 business days after the Advisor receives written notice of such breach,
or (iii) an event of the bankruptcy of the Advisor or commencement of any bankruptcy or similar
insolvency proceedings of the Advisor.

22

 

     14.04 Termination by the Advisor. This Agreement may be terminated immediately by the
Advisor in the event of (i) the bankruptcy of the Company or commencement of any bankruptcy or
similar insolvency proceedings of the Company, or (ii) any material breach of this Agreement by the
Company not cured by the Company within 10 days after written notice thereof.

     14.05 Payments on Termination and Survival of Certain Rights and Obligations. Payments to
the Advisor pursuant to this Section 14.05 shall be subject to the 2%/25% Guidelines to the extent
applicable.

     (i) After the Termination Date, the Advisor shall not be entitled to compensation for
further services hereunder except it shall be entitled to receive from the Company within 30
days after the effective date of such termination all unpaid reimbursements of expenses and
all earned but unpaid fees payable to the Advisor prior to termination of this Agreement.

     (ii) The Advisor shall promptly upon termination:

     (a) pay over to the Company all money collected pursuant to this Agreement, if
any, after deducting any accrued compensation and reimbursement for its expenses to
which it is then entitled;

     (b) deliver to the Directors a full accounting, including a statement showing
all payments collected by it and a statement of all money held by it, covering the
period following the date of the last accounting furnished to the Directors;

     (c) deliver to the Directors all assets and documents of the Company then in
the custody of the Advisor; and

23

 

     (d) cooperate with the Company to provide an orderly transition of advisory
functions.

Upon the expiration or termination of this Agreement, neither party shall have any further rights
or obligations under this Agreement, except that Articles 13, 16 and 17 shall survive the
termination or expiration of this Agreement.

     14.06 Repurchase of Units. In the event this Agreement expires without the consent of the
Advisor, or is terminated for any reason other than by the Advisor pursuant to Section 14.02 or
Section 14.04, the Company shall (to the fullest extent funds are legally available for such
purpose) at the election of the Advisor or any of its Affiliates and at any time (and from time to
time) after the effective date of such expiration or termination, purchase all or a portion of the
Units or Participation Interest (as applicable) held by the Advisor and its Affiliates. The
purchase price shall be paid in cash or, at the election of the seller, Shares, and shall be
payable within 120 days after the Advisor or its Affiliates (as applicable) gives the Company
written notice of its desire to sell all or a portion of the Units or Participation Interest held
by such Person to the Company. The General Partner agrees to keep a sufficient number of
authorized but unissued Shares available for issuance pursuant to this Section 14.06 and shall
issue Shares as may be required hereunder. The purchase price of each interest in the Company
pursuant to this Section 14.06 shall be (i) in the event the seller elects to receive cash, the
Cash Amount the seller would receive under a redemption of such interests under Section 3.2 of the
Limited Partnership Agreement assuming the Company paid cash for such redemption, or (ii) in the
event the seller elects to receive Shares, the REIT Shares Amount the seller would receive under a
redemption of such interests under Section 3.2 of the Limited Partnership Agreement assuming the
Company paid Shares for such redemption.

24

 

ARTICLE 15

ASSIGNMENT

     This Agreement may be assigned by the Advisor to an Affiliate with the consent of the General
Partner by approval of a majority of the Independent Directors. The Advisor may assign any rights
to receive fees or other payments under this Agreement without obtaining the approval of the Board
of Directors. This Agreement shall not be assigned by the Company without the consent of the
Advisor.

ARTICLE 16

INDEMNIFICATION AND LIMITATION OF LIABILITY

     16.01 Indemnification by the Company. The Company shall indemnify and hold harmless the
Advisor and its Affiliates, including their respective managers, officers, directors, partners and
employees, from all liability, claims, damages or losses arising in the performance of their duties
hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such
liability, claims, damages or losses and related expenses are not fully reimbursed by insurance,
subject to any limitations imposed by the laws of the State of Texas, the Articles of Incorporation
or Agreement of Limited Partnership of the Company, provided that: (i) the Advisor and its
Affiliates have determined that the course of conduct which caused the loss or liability was in the
best interests of the Company, (ii) the Advisor and its Affiliates were acting on behalf of or
performing services for the Company, (iii) the indemnified claim was not the result of negligence,
misconduct, or fraud of the indemnified person or resulted from a breach of the agreement by the
Advisor, and (iv) in the event the loss , liability or expense arises from or out of an alleged
violation of federal or state securities laws by the Advisor or its Affiliates, the conditions set
forth in at least one of clauses (X), (Y) or (Z) of Section 12.2(b) of the Articles of

25

 

Incorporation must be satisfied (deeming, for purposes of this Agreement, that the Advisor or
its Affiliates are each an “Indemnitee” as such term is used in such clauses) for the Company to
provide such indemnification. Any indemnification of the Advisor may be made only out of the net
assets of the Company and not from the Shareholders.

     16.02 Indemnification by the Advisor. The Advisor shall indemnify and hold harmless the
Company from contract or other liability, claims, damages, taxes or losses and related expenses,
including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and
related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s
bad faith, fraud, willful misconduct or reckless disregard of its duties, but the Advisor shall not
be held responsible for any action of the Board of Directors in following or declining to follow
any of the Advisor’s advice or recommendation. THE PARTIES HERETO INTEND THAT THE INDEMNITIES SET
FORTH IN THIS AGREEMENT BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF
CONSTRUCTION TO THE CONTRARY. WITHOUT LIMITING THE FOREGOING, THE INDEMNITIES SHALL, TO THE
FULLEST EXTENT ALLOWED BY LAW, AND TO THE EXTENT PROVIDED IN THIS AGREEMENT, APPLY NOTWITHSTANDING
ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON AN
INDEMNIFIED PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT
LIABILITY OR GROSS NEGLIGENCE. IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN
THIS AGREEMENT, THE INDEMNITIES SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY
TO AN INDEMNIFIED PERSON’S SOLE,

26

 

CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY OR GROSS
NEGLIGENCE. THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

     16.03 The Advisor’s Liability.

     (i) Notwithstanding any other provisions of this Agreement, in no event shall the
Company make any claim against the Advisor, or its Affiliates, on account of any good faith
interpretation by the Advisor of the provisions of this Agreement (even if such
interpretation is later determined to be a breach of this Agreement) or any alleged errors
in judgment made in good faith and in accordance with this Agreement in connection with the
operation of the operations of the Company hereunder by the Advisor or the performance of
any advisory or technical services provided by or arranged by the Advisor. The provisions
of this Section 16.03(i) shall not be deemed to release the Advisor from liability for its
gross negligence.

     (ii) The Company shall not object to any expenditures made by the Advisor in good faith
in the course of its performance of its obligations under this Agreement or in settlement of
any claim arising out of the operation of the Company unless such expenditure is
specifically prohibited by this Agreement. The provisions of this Section 16.03(ii) shall
not be deemed to release the Advisor from liability for its gross negligence.

     (iii) IN NO EVENT WILL EITHER PARTY BE LIABLE FOR DAMAGES BASED ON LOSS OF INCOME,
PROFIT OR SAVINGS OR INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL
DAMAGES OF THE OTHER PARTY OR PERSON, INCLUDING

27

 

THIRD PARTIES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES
IN ADVANCE, AND ALL SUCH DAMAGES ARE EXPRESSLY DISCLAIMED. IN NO EVENT WILL THE ADVISOR’S
AGGREGATE LIABILITY UNDER THIS AGREEMENT EVER EXCEED THE TOTAL AMOUNT OF FEES IT ACTUALLY
RECEIVES FROM THE COMPANY PURSUANT TO ARTICLE 9.

     (iv) THE PARTIES HERETO INTEND THAT THE RELEASE FROM LIABILITY SET FORTH IN SECTION
16.03 BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE
CONTRARY. WITHOUT LIMITING THE FOREGOING, THE RELEASE FROM LIABILITY SHALL, TO THE FULLEST
EXTENT ALLOWED BY LAW, APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR
SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY
ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY. IT IS THE INTENT OF THE PARTIES THAT, TO
THE EXTENT PROVIDED IN SECTION 16.03, THE RELEASE FROM LIABILITY SET FORTH HEREIN SHALL, TO
THE FULLEST EXTENT ALLOWED BY LAW, APPLY TO A RELEASED PERSON’S SOLE, CONCURRENT OR
CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY. THE PARTIES AGREE THAT THIS
PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

28

 

ARTICLE 17

MISCELLANEOUS

     17.01 Notices. Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other
communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to
whom it is given, and shall be given by being delivered by hand or by overnight mail or other
overnight delivery service to the addresses set forth herein:

     To the Company, the General Partner or the Directors:

Hines REIT Properties, L.P.

c/o Hines Real Estate Investment Trust, Inc.

2800 Post Oak Blvd., Suite 5000

Houston, Texas 77056

     To the Advisor:

Hines Advisors Limited Partnership

2800 Post Oak Blvd., Suite 5000

Houston, Texas 77056

     Either party may at any time give notice in writing to the other party of a change in its
address for the purposes of this Section 17.01.

     17.02 Modification. This Agreement shall not be changed, modified, terminated, or
discharged, in whole or in part, except by an instrument in writing signed by both parties hereto,
or their respective successors or assignees.

29

 

     17.03 Severability. The provisions of this Agreement are independent of and severable from
each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of
the fact that for any reason any other or others of them may be invalid or unenforceable in whole
or in part.

     17.04 Construction. The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of Texas.

     17.05 Entire Agreement. This Agreement contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof. This Agreement may not be modified or amended other than by an agreement
in writing.

     17.06 Waiver. Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver.

30

 

     17.07 Gender. Words used herein regardless of the number and gender specifically used,
shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context requires.

     17.08 Titles Not to Affect Interpretation. The titles of Articles and Sections contained in
this Agreement are for convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation hereof.

     17.09 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original as against any party whose signature appears thereon, and
all of which shall together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as the signatories

[The remainder of this page is intentionally left blank. Signature page follows.]

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

	 	 	 	 	 	 	 
	 	 	Hines REIT Properties, L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	Hines Real Estate Investment Trust, Inc.
	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Hines Advisors Limited Partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Hines Advisors GP LLC
	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Hines Real Estate Investment Trust, Inc.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]