Document:

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                                                                    EXHIBIT 10.4
                                                                    ------------

                                 T REIT, INC.

                    EMPLOYEE AND OFFICER STOCK OPTION PLAN
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

<TABLE>
<S>                                                                          <C>
ARTICLE I DEFINITIONS......................................................   4

         1.01. Affiliate...................................................   4
         1.02. Agreement...................................................   4
         1.03. Board.......................................................   4
         1.04. Code........................................................   4
         1.05. Committee...................................................   4
         1.06. Common Stock................................................   4
         1.07. Company.....................................................   4
         1.08. Fair Market Value...........................................   4
         1.09. Independent Director........................................   5
         1.10. Offering....................................................   5
         1.11. Option......................................................   5
         1.12. Option Price................................................   5
         1.13. Participant.................................................   6
         1.14. Plan........................................................   6

ARTICLE II PURPOSES........................................................   6

ARTICLE III ADMINISTRATION.................................................   6

ARTICLE IV ELIGIBILITY.....................................................   7

ARTICLE V COMMON STOCK SUBJECT TO PLAN.....................................   7

         5.01. Common Stock Issued.........................................   7
         5.02. Aggregate Limit.............................................   7
         5.03. Reallocation of Shares......................................   8

ARTICLE VI OPTIONS.........................................................   8

         6.01. Award.......................................................   8
         6.02. Option Price................................................   8
         6.03. Maximum Option Period.......................................   8
         6.04. Nontransferability..........................................   8
         6.05. Status as Employee..........................................   9
         6.06. Exercise....................................................   9
         6.07. Payment.....................................................  10
</TABLE>

                                      -2-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

<TABLE>
<S>                                                                          <C>
         6.08. Shareholder Rights..........................................  10

ARTICLE VII ADJUSTMENT UPON CHANGE IN COMMON STOCK.........................  10

ARTICLE VIII COMPLIANCE WITH LAW AND APPROVAL OF
  REGULATORY BODIES AND ASSURANCE OF REIT STATUS...........................  13

ARTICLE IX GENERAL PROVISIONS..............................................  13

         9.01. Effect on Employment and Service............................  13
         9.02. Unfunded Plan...............................................  13
         9.03. Rules of Construction.......................................  14

ARTICLE X AMENDMENT........................................................  14

ARTICLE XI DURATION OF PLAN................................................  14

ARTICLE XII EFFECTIVE DATE OF PLAN.........................................  14
</TABLE>

                                      -3-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

                                   ARTICLE I
                                  DEFINITIONS

1.01.    Affiliate

Affiliate means any "subsidiary" or "parent" corporation (within the meaning of
Section 424 of the Code) of the Company, including a corporation that becomes an
Affiliate after the adoption of this Plan.

1.02.    Agreement

         Agreement means a written agreement (including any amendment or
supplement thereto) between the Company and a Participant specifying the terms
and conditions of an Option granted to such Participant.

1.03.    Board

         Board means the Board of Directors of the Company.

1.04.    Code

         Code  means  the  Internal  Revenue  Code of 1986,  and any  amendments
thereto.

1.05.    Committee

         Committee means the Executive Compensation Committee of the Board.

1.06.    Common Stock

         Common Stock means the common stock of the Company.

1.07.    Company

         Company means T REIT, Inc.

1.08.    Fair Market Value

         Fair Market Value means,  on any given date, the fair market value of a
share of Common Stock determined in accordance with (a) or (b) below:

         (a)   If the Common Stock is not traded on a national securities
exchange or quotation system, Fair Market Value means a price determined by the
Board in

                                      -4-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

good faith, taking into account, among other factors the Board deems
relevant, the price per share at which the Common Stock is then being sold to
the public, the price per share of the common stock of comparable companies, the
Company's earnings, and the value of the Company's assets; provided, however,
that any such determination by the Board must be approved by a majority of the
Independent Directors.

         (b)   If the Common Stock is traded on a national securities exchange
or quotation system, Fair Market Value means that average of the last sales
price or the average of the last bid and ask prices, in each case for the five
trading days immediately preceding the date of determination.

1.09.    Independent Director

         Independent  Director  means a member of the Board who is not,  and has
not been in the two years  immediately  prior to any determination of such Board
member's Independent Director status, directly or indirectly associated with the
Company or Triple Net Properties, LLC.

1.10.    Offering

         Offering  means the  initial  public  offering  of Common  Stock by the
Company.

1.11.    Option

         Option means a stock option that  entitles the holder to purchase  from
the Company a stated  number of shares of Common Stock at the price set forth in
an Agreement.

1.12.    Option Price

         Option Price means the purchase price per share of Common Stock under
an Option determined in accordance with (a), (b) or (c) below, but subject to
Section 6.02:

         (a)   If the date of grant of an Option occurs on or before the date of
the commencement of the Offering, the Option Price for such Option shall be the
price per share of Common Stock in the Offering less the dealer manager's
selling commission and marketing support and due diligence reimbursement fee
allocable to a share of Common Stock.

                                      -5-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

         (b)   If the date of grant of an Option occurs during the Offering but
after the date of the commencement of the Offering, the Option Price for such
Option shall be the greater of (i) the price per share of Common Stock in the
Offering less the dealer manager's selling commission and marketing support and
due diligence reimbursement fee allocable to a share of Common Stock and (ii)
the Fair Market Value on the date of grant of such Option.

         (c)   If the date of grant of an Option occurs after the completion of
the Offering, the Option Price for such Option shall be the Fair Market Value on
the date of grant of such Option.

1.13.    Participant

         Participant means an officer or employee of the Company who satisfies
the requirements of Article IV and is selected by the Board, acting on
recommendation by the Committee, to receive an Option. A member of the Board who
is an officer or employee of the Company may be selected to participate in this
Plan.

1.14.    Plan

         Plan means the T REIT, Inc. Employees' and Officers' Stock Option Plan.

                                  ARTICLE II
                                   PURPOSES

         The Plan is intended to assist the Company in recruiting and retaining
individuals or entities with ability and initiative by enabling such persons to
participate in the future success of the Company and to associate their
interests with those of the Company and its shareholders. The Plan is intended
to permit the grant of nonqualified stock options - i.e., Options not qualifying
under Section 422 of the Code. The proceeds received by the Company from the
sale of shares of Common Stock pursuant to this Plan shall be used for general
corporate purposes.

                                  ARTICLE III
                                ADMINISTRATION

         The Plan shall be administered by the Board. The Board shall have
authority to grant Options upon such terms (not inconsistent with the provisions
of this Plan), as the Board may consider appropriate. Such terms may include
conditions (in addition to those contained in this Plan), on the exercisability
of all or any part of an Option. Notwithstanding any such conditions, the Board
may, in its discretion, (i) accelerate the time at which any Option may be
exercised, or (ii) suspend the

                                      -6-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

forfeiture of any award made under this Plan. In addition, the Board shall have
complete authority to interpret all provisions of this Plan; to prescribe the
form of Agreements; to adopt, amend, and rescind rules and regulations
pertaining to the administration of the Plan; and to make all other
determinations necessary or advisable for the administration of this Plan. The
express grant in the Plan of any specific power to the Board shall not be
construed as limiting any power or authority of the Board. Notwithstanding the
foregoing, any decision made or action taken by the Board under this Article III
must be approved by a majority of the Independent Directors. Subject to such
approval, any decision made or action take by the Board or in connection with
the administration of this Plan shall be final and conclusive. Neither the Board
nor the Committee nor any member of the Board or the Committee shall be liable
for any act done in good faith with respect to this Plan or any Agreement or
Option. All expenses of administering this Plan shall be borne by the Company.

                                  ARTICLE IV
                                  ELIGIBILITY

         Any employee of the Company (whether or not such person is also a Board
member) is eligible to participate in this Plan if the Board, acting on
recommendation by the Committee, determines that such person has contributed
significantly or can be expected to contribute significantly to the profits or
growth of the Company.

                                   ARTICLE V
                         COMMON STOCK SUBJECT TO PLAN

5.01.    Common Stock Issued

         Upon the exercise of any Option, the Company may deliver to the
Participant (or the Participant's broker if the Participant so directs), shares
of Common Stock from its authorized but unissued Common Stock.

5.02.    Aggregate Limit

         The maximum aggregate number of shares of Common Stock that may be
issued under this Plan is 700,000 shares. The maximum aggregate number of shares
of Common Stock that may be issued under this Plan shall be subject to
adjustment as provided in Article VII.

                                      -7-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

5.03.    Reallocation of Shares

         If an Option is terminated, in whole or in part, for any reason other
than its exercise, the number of shares allocated to the Option or portion
thereof may be reallocated to other Options to be granted under this Plan.

                                  ARTICLE VI
                                    OPTIONS

6.01.    Award

         In accordance with the provisions of Article IV, the Board, acting on
recommendation by the Committee, will designate each individual to whom an
Option is to be granted and will specify the number of shares of Common Stock
covered by such awards; provided, however, that no Participant may be granted
Options in any calendar year covering more than _______ shares. The Board will
make grants pursuant to this Section 6.01 on the date of each annual meeting of
the Company's shareholders and at such other times as it may determine.

6.02.    Option Price

         The Option Price per share for shares of Common Stock purchased on the
exercise of an Option shall be determined by the Board on the date of grant in
accordance with Section 1.12; provided, however, that in no event may the Option
Price be less than the Fair Market Value on the date the Option is granted.

6.03.    Maximum Option Period

         The maximum period in which an Option may be exercised shall be
determined by the Board on the date of grant, except that no Option shall be
exercisable after the expiration of ten years from the date such Option was
granted.

6.04.    Nontransferability

         Each Option granted under this Plan shall be nontransferable except by
will or by the laws of descent and distribution. During the lifetime of the
Participant to whom the Option is granted, the Option may be exercised only by
the Participant. No right or interest of a Participant in any Option shall be
liable for, or subject to, any lien, obligation, or liability of such
Participant.

                                      -8-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

6.05.    Status as Employee

         In the event that the terms of any Option provide that it may be
exercised only during employment or within a specified period of time after
termination of employment, the Board may decide to what extent leaves of absence
for governmental or military service, illness, temporary disability, or other
reasons shall not be deemed interruptions of continuous employment.

6.06.    Exercise

         (a)   Subject to the provisions of this Plan, including Section 6.06(b)
through (f), and the applicable Agreement, an Option may be exercised in whole
at any time or in part from time to time at such times and in compliance with
such requirements as the Board shall determine (subject to approval by a
majority of the Independent Directors). An Option granted under this Plan may be
exercised with respect to any number of whole shares less than the full number
for which the Option could be exercised. A partial exercise of an Option shall
not affect the right to exercise the Option from time to time in accordance with
this Plan and the applicable Agreement with respect to the remaining shares
subject to the Option.

         (b)   Options granted on or before the commencement of the Offering
will become exercisable for one-third of the shares subject to the Option on the
date of grant, and for an additional one-third of such shares on each of the
first and second anniversaries of the date of grant.

         (c)   Options granted after the commencement of the Offering will
become exercisable in whole or in part on the second anniversary of the date of
grant.

         (d)   If a Participant remains in the continuous employ of the Company
from the date of grant of an Option though the Participant's termination of
employment due to death or "permanent and total disability," within the meaning
of Section 22(e)(3) of the Code, the Participant or the Participant's successor
in interest (in the event of death) may exercise Participant's Option or Options
for all or part of the number of shares for which each such Option was
exercisable on the date of Participant's termination of employment, for one year
following such termination of employment or, if sooner, during the period prior
to the stated expiration date of the Option or Options.

         (e)   If a Participant ceases to be employed by the Company for any
reason other than death or "permanent and total disability," within the meaning
of Section 22(e)(3) of the Code, Participant may exercise his or her Option or
Options for the

                                      -9-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

number of shares for which each such Option was exercisable on the date of the
Participant's termination of employment, for three months following such
termination of employment or, if sooner, during the period prior to the stated
expiration date of the Option or Options.

         (f)   Notwithstanding any provision of this Plan or any Agreement, no
Option will become exercisable to the extent that the total number of all
exercisable options and warrants to purchase Common Stock that are owned by the
Company's officers, directors and employees and affiliates of such individuals
would exceed 10% of the total outstanding shares of Common Stock (as of the date
such Option or portion thereof is scheduled to become exercisable) if such
Option or portion thereof were to become exercisable as scheduled (the "10%
Limit"). If an Option or portion thereof is scheduled to become exercisable on a
certain date and the 10% Limit would be exceeded as a result of such
exercisability, then such Option or portion thereof will become exercisable on
the first date that such exercisability would not cause the 10% Limit to be
exceeded. If Options or portions thereof issued pursuant to more than one
Agreement are scheduled to become exercisable on a certain date, and the
exercisability of all of such Options would cause the 10% Limit to be exceeded,
then such Options will become exercisable, subject to the 10% Limit, on a pro
rata basis according to the total number of shares of Common Stock scheduled to
become exercisable. The preceding sentence shall be applied by taking into
account options granted pursuant to all of the Company's plans, including this
Plan.

6.07.    Payment

         Subject to rules established by the Board and approved by a majority of
the Independent Directors, payment of all or part of the Option price may be
made in cash, a cash equivalent acceptable to the Board, with shares of Common
Stock, or a combination thereof. If shares of Common Stock are used to pay all
or part of the Option Price, the sum of the cash and cash equivalent and the
Fair Market Value (determined as of the day preceding the date of exercise) of
the shares surrendered must not be less than the Option Price of the shares for
which the Option is being exercised.

6.08.    Shareholder Rights

         No Participant shall have any rights as a shareholder with respect to
shares subject to his Option until the date of exercise of such Option.

                                  ARTICLE VII

                                      -10-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

                    ADJUSTMENT UPON CHANGE IN COMMON STOCK

         The maximum number of shares as to which Options may be granted; the
terms of outstanding Options, including the Option Price and the kind of shares
subject to the Options; and the per individual limitations on the number of
shares of Common Stock for which Options may be granted shall be adjusted as the
Board shall determine to be equitably required (i) in the event that the Company
(a) effects one or more stock dividends, stock split-ups, subdivisions or
consolidations of shares or (b) engages in a transaction to which Section 424 of
the Code applies and in which the Company is the surviving entity, or (ii) there
occurs any other event which, in the judgment of the Board necessitates such
action. Any determination made by the Board under this Article VII is subject to
approval by a majority of the Independent Directors and, if such approval is
obtained, shall be final and conclusive.

         This Plan shall terminate and any outstanding Options will be forfeited
(i) in the event of a dissolution or liquidation of the Company; (ii) in the
event the Company engages in a transaction to which Section 424 of the Code
applies and in which the Company is not the surviving entity; or (iii) upon the
sale of all or substantially all of the assets of the Company. Notwithstanding
the foregoing, in connection with or in contemplation of any of the events
described in the preceding sentence, the Board may provide in writing for any of
the following alternatives to termination of the Plan and forfeiture of
outstanding Options, separately or in combination: (i) the assumption by the
successor corporation of outstanding Options or the substitution by such
corporation for such Options of options covering the stock of the successor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number and kind of shares and option prices; (ii) the continuation of the
Plan by such successor corporation, in which event the Plan will continue in the
manner and under the terms so provided by the Board; or (iii) a payment in cash
or shares of Common Stock or other securities in lieu of and in complete
satisfaction of outstanding Options. Any action taken by the Board under this
paragraph is subject to approval by a majority of the Independent Directors and,
if such approval is obtained, shall be final and conclusive.

         The issuance by the Company of stock of any class, or securities
convertible into stock of any class, for cash or property, or for labor or
services, either upon direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of stock or obligations of the Company
convertible into such stock or other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the maximum number
of shares as to which Options may be granted; the per individual limitations on
the number of shares for which Options may be granted; or the terms of
outstanding Options.

                                      -11-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

         The Board may grant Options in substitution for stock options or
similar awards held by an individual who becomes an employee of the Company in
connection with a transaction described in the first paragraph of this Article
VII. Notwithstanding any provision of the Plan (other than the limitation of
Section 5.02), the terms of such substituted Options shall be as the Board, in
its discretion, determines is appropriate.

                                      -12-
<PAGE>

                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

                                 ARTICLE VIII
                      COMPLIANCE WITH LAW AND APPROVAL OF
                REGULATORY BODIES AND ASSURANCE OF REIT STATUS

         No Option shall be exercisable, no shares of Common Stock shall be
issued, no certificates for shares of Common Stock shall be delivered, and no
payment shall be made under this Plan (i) except in compliance with (a) all
applicable federal and state laws and regulations (including, without
limitation, withholding tax requirements), (b) any listing agreement to which
the Company is a party, and (c) the rules of all domestic stock exchanges on
which the Company's shares may be listed and (ii) only if such exercise or
issuance of Common Stock or delivery of certificates will not jeopardize the
Company's status as a real estate investment trust under the Code. The Company
shall have the right to rely on an opinion of its counsel as to such compliance
and assurance of real estate investment trust status. Any stock certificate
issued to evidence shares of Common Stock for which an Option is exercised may
bear such legends and statements as the Board may deem advisable to assure
compliance with federal and state laws and regulations. No Option shall be
exercisable, no shares of Common Stock shall be issued, no certificate for
shares of Common Stock shall be delivered, and no payment shall be made under
this Plan until the Company has obtained such consent or approval as the Board
may deem advisable from regulatory bodies having jurisdiction over such matters.

                                  ARTICLE IX
                              GENERAL PROVISIONS

9.01.    Effect on Employment and Service

         Neither the adoption of this Plan, its operation, nor any documents
describing or referring to this Plan (or any part thereof), shall confer upon
any individual any right to continue in the employ or service of the Company or
an Affiliate or in any way affect any right and power of the Company or an
Affiliate to terminate the employment or service of any individual at any time
with or without assigning a reason therefor.

9.02.    Unfunded Plan

         The Plan, insofar as it provides for grants, shall be unfunded, and the
Company shall not be required to segregate any assets that may at any time be
represented by grants under this Plan. Any liability of the Company to any
person with respect to any grant under this Plan shall be based solely upon any
contractual obligations that may be created pursuant to this Plan. No such
obligation of the

                                      -13-
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                                 T REIT, Inc.
                  Employees' And Officers' Stock Option Plan
                  ------------------------------------------

Company shall be deemed to be secured by any pledge of, or other encumbrance on,
any property of the Company.

9.03.    Rules of Construction

         Headings are given to the articles and sections of this Plan solely as
a convenience to facilitate reference. The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or
successor of such provision of law.

                                   ARTICLE X
                                   AMENDMENT

         The Board may amend or terminate this Plan from time to time; provided,
however, that any amendment must be approved by a majority of the Independent
Directors; and provided, further, that no amendment may become effective until
any applicable laws, regulations, rules or requirements of any governmental
authority or stock exchange on which the Common Stock is then listed are
satisfied. Except as provided in Article VII, no amendment shall, without a
Participant's consent, adversely affect any rights of such Participant under any
Option outstanding at the time such amendment is made.

                                  ARTICLE XI
                               DURATION OF PLAN

         No Option may be granted under this Plan more than five years after the
commencement of the Offering. Options granted before that date shall remain
valid in accordance with their terms.

                                  ARTICLE XII
                            EFFECTIVE DATE OF PLAN

         Options may be granted under this Plan upon its adoption by the Board;
provided that, unless this Plan is approved by a majority of the votes cast by
the Company's shareholders, voting either in person or by proxy, at a duly held
shareholders' meeting at which a quorum is present, no Option shall be
exercisable.

                                      -14-<PAGE>

                                                                    EXHIBIT 10.5
                                                                    ------------

                              ADVISORY AGREEMENT

     ADVISORY AGREEMENT made as of ______, 2000 between T REIT, Inc., a Virginia
corporation (the "Company"), and Triple Net Properties, LLC, a Virginia limited
liability company (the "Advisor").

                             W I T N E S S E T H:

     WHEREAS, the Company intends to qualify as a real estate investment trust
(a "REIT") as defined in Sections 856 through 860 of the Internal Revenue Code
of 1986, as amended (the "Code"), and to make investments of the type permitted
to qualified REITs under the Code and not inconsistent with the Articles of
Incorporation of the Company, as amended (the "Articles of Incorporation"), and
the Bylaws of the Company; and

     WHEREAS, the Company desires to avail itself of the experience, sources of
information, advice and assistance of the Advisor and to have the Advisor
undertake the duties and responsibilities hereinafter set forth, on behalf of
and subject to the supervision of the Board of Directors of the Company (the
"Board of Directors"), as provided herein; and

     WHEREAS, the Advisor is willing to undertake to render such services,
subject to the supervision of the Board of Directors, on the terms and
conditions herein set forth;

     NOW, THEREFORE, in consideration of the mutual covenants herein set forth,
the parties hereto agree as follows:

     1.   Definitions.

     As used herein, the following terms shall have the meanings set forth
below:

          (a)  "Acquisition Expenses" shall mean expenses related to selecting,
     evaluating and acquiring properties, whether or not acquired, including,
     but not limited to, legal fees and expenses, travel and communications
     expenses, cost of appraisals and surveys, nonrefundable option payments on
     property not acquired, accounting fees and expenses, computer use related
     expenses, architectural and engineering reports, environmental and asbestos
     audits, title insurance and escrow fees, and personnel and miscellaneous
     expenses related to the selection and acquisition of properties.

          (b)  "Affiliate" shall mean: (i) any Person directly or indirectly
     owning, controlling or holding, with the power to vote 10% or more of the
     outstanding voting securities of such other Person; (ii) any Person 10% or
     more of whose outstanding voting securities are directly or indirectly
     owned, controlled or held, with the power to vote, by such other Person;
     (iii) any Person directly or indirectly controlling, controlled by or under
     common control with such other Person; (iv) any executive officer,
     director, trustee or general partner of such other Person; and (v) any
     legal entity for which such Person acts as an executive officer, director,
     trustee or general partner.
<PAGE>

          (c)  "Asset Management Fee" means an amount up to 1.5% of the Average
     Invested Assets as described in Section 9(b).

          (d)  "Average Invested Assets" shall mean, for any period, the average
     of the aggregate Book Value of the assets of the Company invested, directly
     or indirectly, in equity interests and in loans secured by real estate,
     before reserves for depreciation or bad debts or other similar non-cash
     reserves, computed by taking the average of such values at the end of each
     month during such period.

          (e)  "Book Value" of an asset shall mean the value of such asset on
     the books of the Company, before allowance for depreciation or
     amortization.

          (f)  "Common Stock" shall mean the common stock, par value $.01 per
     share, of the Company.

          (g)  "Competitive Real Estate Commission" means the real estate or
     brokerage commission paid for the purchase or sale of a property which is
     reasonable, customary and competitive in light of the size, type and
     location of such property.

          (h)  "Cumulative Return" shall mean a cumulative, non-compounded
     return equal to 8% per annum on Invested Capital commencing upon acceptance
     by the Company of an investor's subscription.

          (i)  "Fiscal Year" shall mean any period for which any income tax
     return is submitted by the Company to the Internal Revenue Service and
     which is treated by the Internal Revenue Service as a reporting period.

          (j)  "Gross Offering Proceeds" shall mean the total proceeds from the
     sale of Shares before deductions for Organizational and Offering Expenses.
     For purposes of calculating Gross Offering Proceeds, the purchase price for
     all Shares issued in the Company's initial public offering, including those
     for which volume discounts apply, shall be deemed to be $10.00 per Share.

          (k)  "Gross Income From Properties" shall mean all cash receipts
     derived from the operation of the Company's property, excluding (i) tenant
     security deposits unless and until such deposits are forfeited upon a
     tenant default, and (ii) proceeds from insurance claims, condemnation
     proceedings, sales or refinancings.

          (l)  "Independent Directors" shall mean a Director who is not, and
     within the last two (2) years has not been, directly or indirectly
     associated with a Sponsor or the Advisor by virtue of (i) ownership of an
     interest in a Sponsor, Advisor or their Affiliates, (ii) employment by a
     Sponsor, the Advisor or their Affiliates, (iii) service as an officer or
     director of a Sponsor, the Advisor or their Affiliates, (iv) performance of
     services, other than as a Director, for the Company, (v) service as a
     director or trustee of more than three (3) real estate investment trusts
     organized by a Sponsor or advised by the Advisor, or (vi) maintenance of a
     material business or professional relationship with a Sponsor, the Advisor
     or any of their Affiliates. An indirect relationship shall include
     circumstances in

                                       2
<PAGE>

     which a Director's spouse, parents, children, siblings, mothers- or
     fathers-in-law, sons- or daughters-in-law or brothers- or sisters-in-law is
     or has been associated with a Sponsor, the Advisor, any of their Affiliates
     or the Company. A business or professional relationship is considered
     material if the gross revenue derived by the Director from a Sponsor, the
     Advisor and Affiliates exceeds five percent (5%) of either the Director's
     annual gross revenue during either of the last two (2) years or the
     Director's net worth on a fair market value basis.

          (m)  "Invested Capital" shall mean the total proceeds from the sale of
     Shares. When a property is sold, Invested Capital will be reduced by the
     lesser of (1) the net sale proceeds available for distribution from such
     sale or (2) the sum of (A) the portion of Invested Capital that initially
     was allocated to that property and (B) any remaining shortfall in the
     recovery of Invested Capital with respect to prior sales of properties.

          (n)  "Net Income" shall mean, for any period, total revenues
     applicable to such period, less the operating expenses applicable to such
     period other than additions to or allowances for reserves for depreciation,
     amortization or bad debts or other similar non-cash reserves; provided,
     however, that Net Income shall not include any gain from the sale of the
     Company's assets.

          (o)  "Organizational and Offering Expenses" shall mean those expenses
     incurred by and to be paid from the assets of the Company in connection
     with and in preparing the Company for registration and subsequently
     offering and distributing Shares to the public, including, but not limited
     to, total underwriting and brokerage discounts and commissions (including
     fees of the underwriters' attorneys), expenses for printing, engraving,
     mailing, salaries of employees while engaged in sales activity, charges of
     transfer agents, registrars, trustees, escrow holders, depositaries,
     experts, expenses of qualification of the sale of the securities under
     federal and state laws, including taxes and fees, and accountants' and
     attorneys' fees.

          (p)  "Partnership" shall mean T REIT, L.P., a Virginia limited
     partnership.

          (q)  "Property Disposition Fee" means a real estate disposition fee,
     payable (under certain conditions) to the Advisor and its Affiliates upon
     the sale of the Company's property as described in Section 9(d).

          (r)  "Property Management Fee" shall mean any fee paid to an Affiliate
     or third party as compensation for management of the Company's properties
     as described in Section 9(e).

          (s)  "Person" shall mean any natural person, partnership, corporation,
     association, trust, limited liability company or other legal entity.

          (t)  "Prospectus" shall mean the final prospectus of the Company in
     connection with the initial registration of Shares filed with the
     Securities and Exchange Commission on Form S-11, as supplemented and
     amended from time to time.

                                       3
<PAGE>

          (u)  "Shares" shall mean the shares of capital stock of the Company
     stock.

          (v)  "Shareholders" shall mean holders of the Shares.

          (w)  "Sponsor" shall mean any Person directly or indirectly
     instrumental in organizing, wholly or in part, the Company or any Person
     who will control, manage or participate in the management of the Company,
     and any Affiliate of such Person. Not included is any Person whose only
     relationship with the Company is that of an independent property manager of
     Company assets, and whose only compensation is as such. Sponsor does not
     include wholly independent third parties such as attorneys, accountants,
     and underwriters whose only compensation is for professional services. A
     Person may also be deemed a Sponsor of the Company by:

               (i)   taking the initiative, directly or indirectly, in founding
          or organizing the business or enterprise of the Company, either alone
          or in conjunction with one or more other Persons;

               (ii)  receiving a material participation in the Company in
          connection with the founding or organizing of the business of the
          Company, in consideration of services or property, or both services
          and property;

               (iii) having a substantial number of relationships and contacts
          with the Company;

               (iv)  possessing significant rights to control Company
          properties;

               (v)   receiving fees for providing services to the Company which
          are paid on a basis that is not customary in the industry; or

               (vi)  providing goods or services to the Company on a basis which
          was not negotiated at arms length with the Company.

          (x)  "Total Operating Expenses" shall mean the aggregate expenses of
     every character paid or incurred by the Company as determined under
     generally accepted accounting principles, including fees paid to the
     Advisor, but excluding:

               (i)   the expenses of raising capital such as Organization and
          Offering Expenses, legal, audit, accounting, underwriting, brokerage,
          listing, registration and other fees, printing and other such
          expenses, and taxes incurred in connection with the issuance,
          distribution, transfer, registration and stock exchange listing of the
          Shares;

               (ii)  interest payments;

               (iii) taxes;

                                       4
<PAGE>

               (iv)  non-cash expenditures such as depreciation, amortization
          and bad debt reserves;

               (v)   incentive fees payable to the Advisor; and

               (vi)  Acquisition Expenses, real estate commissions on resale of
          property and other expenses connected with the acquisition,
          disposition (whether by sale, exchange or condemnation) and ownership
          of real estate interests, mortgage loans or other property (such as
          the costs of foreclosure, insurance premiums, legal services,
          maintenance, repair and improvement of property).

     2.   Duties of Advisor.

     The Advisor shall consult with the Company and shall, at the request of the
Board of Directors or the officers of the Company, furnish advice and
recommendations with respect to all aspects of the business and affairs of the
Company. In general, the Advisor shall inform the Board of Directors of factors
that come to its attention which could influence the policies of the Company.
Subject to the supervision of the Board of Directors and consistent with the
provisions of the Articles of Incorporation, the Advisor shall use its best
efforts to:

          (a)  Present to the Company a continuing and suitable investment
     program and opportunities to make investments consistent with the
     investment policies of the Company and the investment program adopted by
     the Board of Directors and in effect at the time and furnish the Company
     with advice with respect to the making, acquisition, holding and
     disposition of investments and commitments therefor. The Advisor is also
     obligated to provide the Company with the first opportunity to purchase any
     income-producing properties located in the Focus States (as such term is
     defined in the Prospectus) placed under contract by the Advisor or its
     Affiliates, provided that: (1) the Company has funds available to make the
     purchase; (2) the Board of Directors votes to make the purchase within 7
     days of being offered such property by the Advisor; and (3) the property
     meets the Company's acquisition criteria as disclosed to the Advisor from
     time to time;

          (b)  Manage the Company's day-to-day operations to effect the
     investment program adopted by the Board of Directors and perform or
     supervise the performance of such other administrative functions necessary
     in connection with the management of the Company as may be agreed upon by
     the Advisor and the Company;

          (c)  Serve as the Company's investment advisor in connection with
     policy decisions to be made by the Board of Directors and, as requested,
     furnish reports to the Board of Directors and provide research, economic
     and statistical data in connection with the Company's investments and
     investment policies;

          (d)  On behalf of the Company, investigate, select and conduct
     relations with lenders, consultants, accountants, brokers, property
     managers, attorneys, underwriters, appraisers, insurers, corporate
     fiduciaries, banks, builders and developers, sellers and

                                       5
<PAGE>

     buyers of investments and persons acting in any other capacity specified by
     the Company from time to time, and enter into contracts with, retain and
     supervise services performed by such parties in connection with investments
     which have been or may be acquired or disposed of by the Company;

          (e)  Perform such property management services and other activities
     relating to the Company's assets as the Advisor shall deem appropriate in
     the particular circumstances, subject to the requirement that the Advisor
     qualify as an "independent contractor" as that phrase is used in connection
     with applicable laws, rules and regulations affecting REITs that own real
     property;

          (f)  Upon request of the Company, act, or obtain the services of
     others to act, as attorney-in-fact or agent of the Company in making,
     acquiring and disposing of investments, disbursing and collecting the
     funds, paying the debts and fulfilling the obligations of the Company and
     handling, prosecuting and settling any claims of the Company, including
     foreclosing and otherwise enforcing mortgage and other liens and security
     interests securing investments;

          (g)  Assist in negotiations on behalf of the Company with investment
     banking firms and other institutions or investors for public or private
     sales of securities of the Company or for other financing on behalf of the
     Company, but in no event in such a way that the Advisor shall be acting as
     a broker, dealer or underwriter of securities of the Company;

          (h)  On behalf of the Company, maintain, with respect to any real
     property and to the extent available, title insurance or other assurance of
     title and customary fire, casualty and public liability insurance with
     respect to the Company's assets;

          (i)  At the direction of the Board of Directors, invest and reinvest
     any money of the Company;

          (j)  Supervise the preparation and filing and distribution of returns
     and reports to governmental agencies and to investors and act on behalf of
     the Company in connection with investor relations;

          (k)  Provide office space, equipment and personnel as required for the
     performance of the foregoing services as Advisor;

          (l)  Advise the Company of the operating results of the Company
     properties, prepare on a timely basis, and review, for such properties,
     operating budgets, maintenance and improvement schedules, projections of
     operating results and such other reports as may be requested by the Board
     of Directors;

          (m)  As requested by the Company, make reports to the Company of its
     performance of the foregoing services and furnish advice and
     recommendations with respect to other aspects of the business of the
     Company;

                                       6
<PAGE>

          (n)  Prepare on behalf of the Company, or engage independent
     professionals to prepare, all reports and returns required by the
     Securities and Exchange Commission, Internal Revenue Service and other
     state or federal governmental agencies, provided that the Company is
     responsible for the fees of such independent professionals;

          (o)  Undertake and perform all services or other activities necessary
     and proper to carry out the investment objectives of the Company; and

          (p)  Undertake communications with Shareholders in accordance with
     applicable law and the Articles of Incorporation,

provided, however, that Affiliates of the Advisor have no obligations to the
Company other than as expressly stated herein, and the Advisor and its
Affiliates have no obligations to present to the Company any specific investment
opportunity except as described in the Prospectus. Notwithstanding the
foregoing, the Advisor hereby represents and acknowledges that it will have
fiduciary duties to the shareholders of the Company and that the Company is
making a statement to that effect in its registration statement filed with the
U.S. Securities and Exchange Commission.

     3.   No Partnership or Joint Venture.

     The Company and the Advisor are not, and shall not be deemed to be,
partners or joint venturers with each other.

     4.   Records.

     The Advisor shall maintain appropriate books of account and records
relating to services performed hereunder, which shall be accessible for
inspection by the Company at any time during ordinary business hours.

     5.   REIT Qualifications.

     Notwithstanding any other provision of this Agreement to the contrary, the
Advisor shall refrain from any action which, in its reasonable judgment or in
any judgment of the Board of Directors of which the Advisor has written notice,
would adversely affect the qualification of the Company as a REIT under the Code
or which would violate any law, rule or regulation of any governmental body or
agency having jurisdiction over the Company or its securities, or which would
otherwise not be permitted by the Articles of Incorporation. If any such action
is ordered by the Board of Directors, the Advisor shall promptly notify the
Board of Directors of the Advisor's judgment that such action would adversely
affect such status or violate any such law, rule or regulation or the Articles
of Incorporation, and shall thereafter refrain from taking such action pending
further clarification or instruction from the Board of Directors.

     6.   Bank Accounts.

     At the direction of the Board of Directors, the Advisor may establish and
maintain bank accounts in the name of the Company, and may collect and deposit
into and disburse from such

                                       7
<PAGE>

accounts any money on behalf of the Company, under such terms and conditions as
the Board of Directors may approve, provided that no funds in any such account
shall be commingled with funds of the Advisor. The Advisor shall from time to
time, as the Company may require, render appropriate accounting of such
collections, deposits and disbursements to the Board of Directors and to the
auditors of the Company.

     7.   Fidelity Bond.

     The Advisor shall not be required to obtain or maintain a fidelity bond in
connection with the performance of its services hereunder.

     8.   Information Furnished Advisor.

     The Board of Directors will keep the Advisor informed in writing concerning
the investment and financing policies of the Company. The Board of Directors
shall notify the Advisor promptly in writing of its intention to make any
investments or to sell or dispose of any existing investments. The Company shall
furnish the Advisor with a certified copy of all financial statements, a signed
copy of each report prepared by independent certified public accountants, and
such other information with regard to its affairs as the Advisor may reasonably
request.

     9.   Compensation.

     The Advisor and its Affiliates shall be paid for services rendered by the
Advisor under this Agreement as follows:

          (a)  The Company will reimburse the Advisor for Acquisition Expenses.
     The total of all Acquisition Expenses paid in connection with the purchase
     of a property may not exceed an amount equal to 6% of the contract purchase
     price for the property unless a majority of the Board of Directors,
     including a majority of the Independent Directors, not otherwise interested
     in the transaction approve the transaction as being commercially
     competitive, fair and reasonable to the Company. Notwithstanding the
     foregoing, the total of all Acquisition Expenses paid in connection with
     the purchase of a property from an Affiliate may not exceed 6% of the
     contract purchase price for the property;

          (b)  An Asset Management Fee of up to 1.5% of the Average Invested
     Assets. This fee will be paid or accrue quarterly, but will not be paid
     until the Shareholders have received distributions equal to a cumulative
     non-compounded rate of 8% per annum on their investment in the Company. If
     the fee is not paid in any quarter, it will accrue and be paid once the
     Shareholders have received a cumulative 8% return;

          (c)  The Company will reimburse the Advisor and its Affiliates for:
     (i) the cost to the Advisor or its Affiliates of goods and services used
     for and by the Company and obtained from unaffiliated parties; and (ii)
     administrative services related thereto. "Administrative Services" include
     only ministerial services such as typing, recordkeeping, preparation and
     dissemination of Company reports, preparation and maintenance of records
     regarding Shareholders, recordkeeping and administration of the

                                       8
<PAGE>

     Dividend Reinvestment Program, preparation and dissemination of responses
     to Shareholder inquiries and other communications with Shareholders and any
     other recordkeeping required for Company purposes. Such reimbursements are
     subject to limitations imposed by Sections 10(b) and (c) hereof;

          (d)  A Property Disposition Fee, payable out of the proceeds of the
     sale of a property, equal to the lesser of: (i) 3% of the contracted for
     sales price of the property; or (ii) 50% of the Competitive Real Estate
     Commission. The amount paid, when added to the sums paid to unaffiliated
     parties, shall not exceed the lesser of the Competitive Real Estate
     Commission or an amount equal to 6% of the contracted for sales price.
     Payment of such fee shall be made only if the Advisor provides a
     substantial amount of services in connection with the sale of the property;

          (e)  A Property Management Fee equal to 5% of the Gross Income from
     Properties. This fee will be paid monthly; and

          (f)  Fees for property-level services including leasing fees,
     construction management fees, loan origination and servicing fees and risk
     management fees; provided that any such compensation to the Advisor will
     not exceed the amount which would be paid to unaffiliated third parties
     providing such services and all such compensation must be approved by a
     majority of the Independent Directors.

     10.  Compensation for Additional Services, Certain Limitations.

          (a)  If the Company shall request the Advisor or its Affiliates to
     render services for the Company other than those required to be rendered by
     the Advisor hereunder, such additional services, if the Advisor elects to
     perform them, will be compensated separately on terms to be agreed upon
     between such party and the Company from time to time in accordance with
     this Section. The rate of compensation for such services shall be approved
     by a majority of the Board of Directors, including a majority of the
     Independent Directors, and shall not exceed an amount that would be paid to
     nonaffiliated third parties for similar services.

          (b)  In extraordinary circumstances fully justified to the official or
     agency administering the state securities laws, the Advisor and its
     Affiliates may provide other goods and services to the Company if all of
     the following criteria are met: (i) the goods or services must be necessary
     to the prudent operation of the Company; or (ii) the compensation, price or
     fee must be equal to the lesser of 90% of the compensation, price or fee
     the Company would be required to pay to independent parties who are
     rendering comparable services or selling or leasing comparable goods on
     competitive terms in the same geographic location, or 90% of the
     compensation, price or fee charged by the Advisor or its Affiliates for
     rendering comparable services or selling or leasing comparable goods on
     competitive terms. In addition, any such payment will be subject to the
     further limitation described in paragraph (c) below. Extraordinary
     circumstances shall be presumed only when there is an emergency situation
     requiring immediate action by the Advisor or its Affiliates and the goods
     or services are not immediately available from

                                       9
<PAGE>

     unafffiliated parties. Services which may be performed in such
     extraordinary circumstances include emergency maintenance of Company
     properties, janitorial and other related services due to strikes or lock-
     outs, emergency tenant evictions and repair services which require
     immediate action, as well as operating and re-leasing properties with
     respect to which the leases are in default or have been terminated.

          (c)  No reimbursement will be permitted to the Advisor or its
     Affiliates under Section 9(c)(ii) above for items such as rent,
     depreciation, utilities, capital equipment and other administrative items
     and the salaries, fringe benefits, travel expenses and other administrative
     items of any controlling persons of the Advisor, its Affiliates or any
     other supervisory personnel except in those instances in which the Company
     believes it to be in the best interest of the Company that the Advisor or
     its Affiliates operate or otherwise deal with, for an interim period, a
     property with respect to which the lease is in default or terminated.
     Permitted reimbursements, except as set forth above, include salaries and
     related salary expenses for non-supervisory services which could be
     performed directly for the Company by independent parties such as legal,
     accounting, transfer agent, data processing and duplication. Controlling
     persons, for purposes of this section, include, but are not limited to
     those entities or individuals holding 5% or more of the stock of the
     Advisor or a person having the power to direct or cause the direction of
     the Advisor, whether through ownership of voting securities, by contract or
     otherwise, and any person, irrespective of his or her title, who performs
     functions for the Advisor similar to those of: (a) chairman or member of
     the board of directors; or (b) president or executive vice-president.

     Notwithstanding the foregoing, and subject to the approval of the Board of
Directors, the Company may reimburse the Advisor for expenses related to the
activities of controlling persons undertaken in capacities other than those
which cause them to be controlling persons. The Advisor believes that the
employees of the Advisor, its Affiliates and controlling persons who perform
services for the Company for which reimbursement is allowed pursuant to Section
10 (b) have the experience and educational background, in their respective
fields of expertise, appropriate for the performance of such services.

     The Advisor and its Affiliates may not be reimbursed by the Company for
their overhead, nor can overhead costs or expenses of the Advisor or its
Affiliates be allocated to or paid by the Company. The foregoing reimbursements
of expenses, as limited by this Agreement, will be made regardless of whether
any cash distributions are made to the Shareholders.

     11.  Statements.

     The Advisor shall furnish to the Company not later than the 10th day of
each calendar quarter, beginning with the second calendar quarter of the term of
this Agreement, a statement showing the computation of any Asset Management Fee
payable to it during such quarter under Section 9 hereof. The Advisor shall
furnish to the Company not later than the 30th day following the end of each
Fiscal Year, a statement showing a computation of the fees or other compensation
payable to the Advisor or an Affiliate of the Advisor with respect to such
Fiscal Year under Sections 9 and 10 hereof. The final settlement of compensation
payable under

                                       10
<PAGE>

Sections 9 and 10 hereof for each Fiscal Year shall be subject to adjustments in
accordance with, and upon completion of, the annual audit of the Company's
financial statements.

     12.  Listing of the Shares.

     If this Agreement is terminated in connection with listing for trading of
the Shares on a national exchange or market or otherwise, the Advisor will
receive, in exchange for terminating this Agreement and the giving up or waiving
of its fees then earned but not paid and all future fees, such consideration to
be determined by the Independent Directors and the Advisor. In addition, at such
time, the Company will cause the Partnership to redeem the Advisor's Incentive
Units for cash, or if agreed by both parties, units of interest in the
Partnership or Shares, for the amount the Advisor would have received if the
Partnership immediately sold all of its assets at fair market value. In the
event of such a termination of this Agreement, the Company shall thereafter be
relieved of its obligation to pay the fees contemplated by this Agreement

     13.  Expenses of the Company.

     The Company shall pay all of its expenses and shall reimburse the Advisor
for its expenses as provided in Sections 9 and 10 hereof and, without limiting
the generality of the foregoing, it is agreed that the following expenses of the
Company shall be paid by the Company:

          (a)  To the extent the Advisor is not expressly required to pay such
     expenses pursuant to this Agreement, salaries and other employment expenses
     of the personnel employed by the Company, directors' fees and expenses
     incurred in attending directors' meetings, travel and other expenses
     incurred by directors, officers and employees of the Company and the cost
     of directors' liability insurance;

          (b)  The cost of borrowed money;

          (c)  All taxes applicable to the Company;

          (d)  Legal, accounting, auditing, underwriting, brokerage, listing,
     registration and other expenses and taxes incurred in connection with the
     organization or operations of the Company, the issuance, distribution,
     transfer, registration and stock exchange or quotation system listing of
     the Company's securities;

          (e)  Fees and expenses paid to advisors, independent contractors and
     Affiliates of the Advisor (as described herein), consultants, managers and
     other agents employed directly by the Company or by the Advisor at the
     Company's request for the account of the Company;

          (f)  Expenses connected with the acquisition, disposition, leasing and
     ownership of investments, including to the extent not paid by others, but
     not limited to, legal fees and other expenses of professional services,
     maintenance, repair and improvement of property and brokerage and sales
     commissions, expenses of maintaining and managing property equity
     interests;

                                       11
<PAGE>

          (g)  All insurance costs incurred in connection with the Company and
     its properties;

          (h)  Expenses connected with payments of dividends or interest or
     distributions in cash or any form made or caused to be made by the Board of
     Directors to shareholders;

          (i)  All expenses connected with communications to shareholders and
     the other bookkeeping and clerical work necessary in maintaining relations
     with shareholders and in complying with the continuous reporting and other
     requirements of governmental bodies or agencies, including the cost of
     printing and mailing certificates for securities and proxy solicitation
     materials and reports to shareholders;

          (j)  Transfer agent and registrar's fees and charges; and

          (k)  Expenses relating to any office or office facilities maintained
     by the Company separate from the office or offices of the Advisor.

     14.  Reimbursement by Advisor.

     The parties acknowledge that pursuant to the "Statement of Policy Regarding
Real Estate Investment Trusts," as revised and adopted by the North American
Securities Administrators Association on September 29, 1993, Total Operating
Expenses of the Company shall be deemed to be excessive if in any Fiscal Year
they exceed the greater of: (a) 2% of the Company's Average Invested Assets for
such Fiscal Year; or (b) 25% of the Net Income for such Fiscal Year. The
Independent Directors shall have the fiduciary responsibility of limiting such
expenses to amounts that do not exceed such limitations. Within 60 days after
the end of any fiscal quarter of the Company for which Total Operating Expenses
(for the 12 months then ended) exceed 2% of Average Invested Assets or 25% of
Net Income, whichever is greater, the Advisor shall reimburse the Company the
amount by which the aggregate expenses incurred by the Company exceed the
limitations described above, provided, however, that the Company may instead
permit such reimbursements to be effected by a reduction in the amount of the
next payments of compensation under Section 9.

     15.  Other Activities of the Advisor.

     Subject to the provisions specifically set forth herein, the Advisor and
its Affiliates currently engage, and may engage in the future, in other
businesses or activities including the rendering of services and investment
advice with respect to real estate investment opportunities to other persons or
entities and may manage other investments (including the investments of the
Advisor and its Affiliates), including those in competition with the Company.

     Directors, officers, employees and agents of the Advisor or of Affiliates
of the Advisor may serve as directors, officers, employees or agents of the
Company.

                                       12
<PAGE>

     16.  Term; Termination of Agreement.

     This Agreement will continue in force until _________ __, 2001, subject to
successive one-year renewals with the written mutual consent of the parties
including approval of a majority of the Independent Directors.

     Notwithstanding any other provision of the Agreement to the contrary,
either the Company or the Advisor may terminate this Agreement, or any extension
hereof, or the parties by mutual consent or a majority of the Independent
Directors may do so, in each case upon 60 days written notice without cause or
penalty. In the event of the termination of the Agreement, the Advisor will
cooperate with the Company and take all reasonable steps requested to assist the
Board of Directors in making an orderly transition of the advisory function.

     If this Agreement is terminated pursuant to this Section, such termination
shall be without any further liability or obligation of either party to the
other, except as provided in Section 19.

     If this Agreement is terminated for any reason other than the listing of
the Shares as contemplated in Section 12, all obligations of the Advisor and its
Affiliates to offer property to the Company for purchase, as described in
Section 2(a), shall also terminate.

     17.  Assignments.

     The Company may terminate this Agreement in the event of its assignment by
the Advisor except an assignment to a successor organization which acquires
substantially all of the property and carries on the affairs of the Advisor,
provided that following such assignment the persons who controlled the
operations of the Advisor immediately prior thereto shall control the operations
of the successor organization, including the performance of its duties under
this Agreement; however, if at any time subsequent to such assignment such
persons shall cease to control the operations of the successor organization, the
Company may thereupon terminate this Agreement. This Agreement shall not be
assignable by the Company without the consent of the Advisor, except in the case
of assignment by the Company to a corporation, trust or other organization which
is a successor to the Company. Any assignment of this Agreement shall bind the
assignee hereunder in the same manner as the assignor is bound hereunder.

     18.  Default, Bankruptcy, etc.

     At the option solely of the Company, this Agreement shall be terminated
immediately upon written notice of termination from the Board of Directors to
the Advisor if any of the following events occurs:

          (a)  The Advisor violates any material provisions of this Agreement
     and, after receipt of written notice of violation, such violation is not
     cured within 30 days; or

          (b)  A court of competent jurisdiction enters a decree or order for
     relief in respect of the Advisor in any involuntary case under the
     applicable bankruptcy, insolvency or other similar law now or hereafter in
     effect, or appoints a receiver, liquidator, assignee, custodian, trustee,
     sequestrator (or similar official) of the Advisor or

                                       13
<PAGE>

     for any substantial part of its property or orders the winding up or
     liquidation of the Advisor's affairs; or

          (c)  The Advisor commences a voluntary case under any applicable
     bankruptcy, insolvency or other similar law now or hereafter in effect, or
     consents to the entry of an order for relief in an involuntary case under
     any such law, or consents to the appointment of or taking possession by a
     receiver, liquidator, assignee, custodian, trustee, sequestrator (or
     similar official) of the Advisor or for any substantial part of its
     property, or makes any general assignment for the benefit of creditors, or
     fails generally to pay its debts as they become due.

               The Advisor agrees that if any of the events specified in
     subsections (b) and (c) of this Section 18 occur, it will give written
     notice thereof to the Company within 7 days after the occurrence of such
     event.

     19.  Action Upon Termination.

     The Advisor shall not be entitled to compensation after the date of
termination of this Agreement for further services hereunder, but shall be paid
all compensation accruing to the date of termination. Subject to the provisions
of Section 12, the Advisor shall forthwith upon a termination caused by factors
other than the listing for trading of the Shares on a national stock exchange or
market:

          (a)  Pay over to the Company all moneys collected and held for the
     account of the Company pursuant to this Agreement, after deducting any
     accrued compensation and reimbursement for its expenses to which it is then
     entitled;

          (b)  Deliver to the Board of 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 Board of Directors;

          (c)  Deliver to the Board of Directors all property and documents of
     the Company then in the custody of the Advisor; and

          (d)  Cooperate with the Company and take all reasonable steps
     requested by the Company to assist the Board of Directors in making an
     orderly transition of the advisory function.

     20.  Amendments.

     This Agreement shall not be amended, 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 assigns.

                                       14
<PAGE>

     21.  Successors and Assigns.

     This Agreement shall bind any successors or permitted assigns of the
parties hereto as herein provided.

     22.  Governing Law.

     The provisions of this Agreement shall be governed, construed and
interpreted in accordance with the laws of the Commonwealth of Virginia as at
the time in effect.

     23.  Liability and Indemnification.

          (a)  The Company shall, to the fullest extent permitted by Virginia
     statutory or decisional law, as amended or interpreted, indemnify and pay
     or reimburse reasonable expenses to the Advisor and its Affiliates,
     provided, that: (i) the Advisor or other party seeking indemnification has
     determined, in good faith, that the course of conduct which caused the loss
     or liability was in the best interest of the Company; (ii) the Advisor or
     other person seeking indemnification was acting on behalf of or performing
     services on the part of the Company; (iii) such liability or loss was not
     the result of negligence, misconduct or a knowing violation of the criminal
     law or any federal or state securities laws on the part of the indemnified
     party; and (iv) such indemnification or agreement to be held harmless is
     recoverable only out of the net assets of the Company and not from the
     Shareholders.

          (b)  The Company shall not indemnify the Advisor or its Affiliates for
     losses, liabilities or expenses arising from or out of an alleged violation
     of federal or state securities laws by such party unless one or more of the
     following conditions are met: (i) there has been a successful adjudication
     on the merits of each count involving alleged securities law violations as
     to the particular indemnitee; (ii) such claims have been dismissed with
     prejudice on the merits by a court of competent jurisdiction as to the
     particular indemnitee; or (iii) a court of competent jurisdiction approves
     a settlement of the claims and finds that indemnification of the settlement
     and related costs should be made and the court considering the request has
     been advised of the position of the Securities and Exchange Commission and
     the published opinions of any state securities regulatory authority in
     which securities of the Company were offered and sold as to indemnification
     for securities law violations.

          (c)  The Company may advance amounts to persons entitled to
     indemnification hereunder for legal and other expenses and costs incurred
     as a result of any legal action for which indemnification is being sought
     only if all of the following conditions are satisfied: (i) the legal action
     relates to acts or omissions with respect to the performance of duties or
     services by the indemnified party for or on behalf of the Company; (ii) the
     legal action is initiated by a third party and a court of competent
     jurisdiction specifically approves such advancement; and (iii) the
     indemnified party receiving such advances undertakes to repay the advanced
     funds to the Company, together with the applicable

                                       15
<PAGE>

     legal rate of interest thereon, in which such party would not be entitled
     to indemnification.

     24.  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 accepted by the party to whom it is given and
shall be given by being delivered at the following addresses of the parties
hereto:

          The Company and/or the Board of Directors:

          T REIT, Inc.
          Suite 650
          1551 N. Tustin Avenue
          Santa Ana, CA 92705

          The Advisor:

          Triple Net Properties, LLC
          Suite 650
          1551 N. Tustin Avenue
          Santa Ana, CA 92705

     Either party may at any time give notice in writing to the other party of a
change of its address for the purpose of this Section 24.

     25.  Headings.

     The section headings hereof have been inserted for convenience of reference
only and shall not be construed to affect the meaning, construction or effect of
this Agreement.

                                       16
<PAGE>

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first above written.

COMPANY:

T REIT, INC., a Virginia corporation

By:________________________________________
Title:_____________________________________

ADVISOR:

TRIPLE NET PROPERTIES, LLC, a Virginia limited
     liability company

By:________________________________________
Title:_____________________________________

                                       17

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