Document:

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                       AGREEMENT OF LIMITED PARTNERSHIP OF
                         BEHRINGER HARVARD 1221 COIT LP

        THIS AGREEMENT OF LIMITED PARTNERSHIP (this "AGREEMENT") is made and
entered into effective as of the 24th day of July, 2004, by and among BEHRINGER
HARVARD 1221 COIT GP, LLC, a Texas limited liability company (the "GENERAL
PARTNER"), BEHRINGER HARVARD SHORT-TERM OPPORTUNITY FUND I LP, a Texas limited
partnership ("BH FUND"), and REALTY AMERICA GROUP (1221 COIT ROAD), LP, a Texas
limited partnership ("REALTY AMERICA").

                                   ARTICLE I.

              FORMATION, NAME, PRINCIPAL PLACE OF BUSINESS - AGENT
                         PURPOSES, TERM AND DEFINITIONS

        1.1     FORMATION. For and in consideration of the mutual covenants
herein contained, the Partners hereby form a limited partnership (hereinafter
the "PARTNERSHIP") under and pursuant to the Texas Revised Limited Partnership
Act, Tex. Rev. Civ. Stat. Ann., art 6132a-1 (such Act hereinafter referred to as
"TRLPA"). The Partnership shall be governed by TRLPA. The Certificate (as
hereinafter defined) has been or shall promptly be filed and recorded in such
office and places as is required by TRLPA.

        1.2     NAME. The business of the Partnership shall be conducted under
the name of "Behringer Harvard 1221 Coit LP."

        1.3     PARTNERSHIP OFFICE, REGISTERED OFFICE AND REGISTERED AGENT. The
Partnership shall maintain its principal office in the State of Texas at 15601
Dallas Parkway, Suite 600, Addison, Texas 75001, or at such other place as the
General Partner, subject to Approval by Partnership Vote, may from time to time
designate. The Registered Office in the State of Texas is 15601 Dallas Parkway,
Suite 600, Addison, Texas 75001, and the agent for service of process at such
address shall be Gerald J. Reihsen, III. The Partnership may maintain such
different or additional offices as the General Partner may determine.

        1.4     PURPOSES. The nature and business of the Partnership and the
purposes to be conducted and promoted by the Partnership are to engage solely in
the following activities:

                (a)     To acquire, own, maintain, operate, manage, finance
(including pursuant to the Mortgage Loan, as hereinafter defined), lease,
refinance, and sell or exchange the Property (as hereinafter defined); and

                (b)     To exercise all powers enumerated in TRLPA or this
Agreement necessary or convenient to the conduct, promotion or attainment of the
business or purposes set forth in Section 1.4(a).

        1.5     TERM. The Partnership shall continue until December 31, 2054,
unless the Partnership is terminated sooner pursuant to Article XII.

        1.6     DEFINITIONS. As used in this Agreement, unless the context
clearly requires otherwise, the following words and phrases shall have the
following meanings:

        "ADDITIONAL CAPITAL CONTRIBUTIONS" means all amounts contributed (or
deemed to be contributed) to the Partnership as additional Capital Contributions
by the Partners under Section 3.2.

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        "ADDITIONAL CAPITAL CONTRIBUTIONS ACCOUNT" means an account maintained
for the Partners equal to (a) all Additional Capital Contributions to the
Partnership made (or deemed made) by such Partner pursuant to Section 3.2, less
(b) the aggregate distributions made to such Partner pursuant to Section 6.1(a)
of this Agreement.

        "ADJUSTMENT DATE" means the close of business on the last day of any
fiscal year of the Partnership.

        "AFFILIATE" means, with respect to any Person (a) any other Person,
directly or indirectly controlling, controlled by or under common control with
such Person; (b) any Person owning or controlling ten percent (10%) or more of
the outstanding voting securities of such specified Person; (c) any officer,
director, partner, member or trustee of such specified Person; and (d) if any
Person who is an Affiliate is an officer, director, partner, member or trustee
of another Person, such other Person. The term "control" shall mean the ability,
directly or indirectly, to control the management of an entity.

        "AGREEMENT" means this Agreement of Limited Partnership.

        "APPROVAL BY PARTNERSHIP VOTE" means approval by the General Partner and
a Majority in Interest of the Limited Partners pursuant to a Partnership Vote.

        "ASSET MANAGEMENT FEE" has the meaning set forth in Section 4.8(d).

        "ASSETS" means all of the assets of the Partnership (including, without
limitation, the Property).

        "CAPITAL ACCOUNT" means, with respect to each Partner, the account
established and maintained on the books and records of the Partnership for each
Partner pursuant to Section 3.3 below, adjusted as provided for therein.

        "CAPITAL CONTRIBUTION" means the amount of money and the Gross Asset
Value of other property or consideration contributed to the capital of the
Partnership by a Partner.

        "CAPITAL CONTRIBUTION BALANCE" means, for each Partner, the cumulative
Capital Contributions of that Partner less the cumulative distributions to that
Partner in return thereof pursuant to Sections 6.1(a) and (b).

        "CASH NEEDS" has the meaning set forth in Section 3.2.

        "CERTIFICATE" means the Certificate of Limited Partnership of the
Partnership.

        "CODE" means the Internal Revenue Code of 1986 as it may be amended or
revised from time to time, or any provision of succeeding law.

        "DEPRECIATION" means, with regard to any Partnership asset for any
fiscal year or other period, the depreciation, depletion or amortization, as the
case may be, allowed or allowable for federal income tax purposes; provided,
however, that if there is a difference between the Gross Asset Value and the
adjusted tax basis of such asset, Depreciation shall mean "book depreciation,
depletion or amortization" as determined under Section 1.704-1(b)(2)(iv)(g)(3)
of the Regulations.

        "DISTRIBUTABLE CASH" means all cash, revenues, and funds received by the
Partnership, and any amounts released from Reserves to the extent the General
Partner, subject to Approval by

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Partnership Vote, deems that the amount released is no longer required to be
retained in Reserves, less the sum of the following to the extent paid or set
aside by the Partnership: (a) all principal and interest payments on
indebtedness of the Partnership (including the Mortgage Loan) and all other sums
paid to lenders; (b) all cash expenditures incurred incident to the normal
operation of the Partnership business; (c) such amounts as may be added to
Reserves as the General Partner, subject to Approval by Partnership Vote, deems
reasonably necessary to the proper operation of the Partnership's business.

        "GENERAL PARTNER" means Behringer Harvard 1221 Coit GP, LLC, a Texas
limited liability company, and any other Person who has been admitted as a
General Partner in the Partnership pursuant to the provisions of this Agreement.

        "GROSS ASSET VALUE" means, except as set forth below, the adjusted basis
of an asset for federal income tax purposes:

        (a) The initial Gross Asset Value of any asset contributed by a Partner
to the Partnership shall be the gross fair market value of such asset at the
time of contribution, as determined by Approval by Partnership Vote;

        (b) The Gross Asset Value of all Partnership assets shall be adjusted to
equal their respective gross fair market values, as determined by Approval by
Partnership Vote, as of the following times: (i) the acquisition of an
additional interest in the Partnership by any new or existing Partners in
exchange for more than a DE MINIMIS Capital Contribution and any such other time
as the General Partner, subject to Approval by Partnership Vote, reasonably
determines that such adjustment is necessary or appropriate to reflect the
relative economic interest of the Partners in the Partnership; (ii) the
distribution by the Partnership to a Partner of more than a DE MINIMIS amount of
Partnership property as consideration for an interest in the Partnership and any
such other time as the General Partner, subject to Approval by Partnership Vote,
reasonably determines that such adjustment is necessary or appropriate to
reflect the relative economic interests of the Partners in the Partnership; and
(iii) the liquidation of the Partnership within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g);

        (c) The Gross Asset Value of any Partnership asset distributed to any
Partner shall be the gross fair market value of such asset on the date of
distribution, as determined by the General Partner subject to Approval by
Partnership Vote; and

        (d) The Gross Asset Values of Partnership assets shall be increased or
decreased to reflect any adjustments to the adjusted basis of such assets
pursuant to Code Section 734(b) or Code Section 743(b) as determined by the
General Partner subject to Approval by Partnership Vote, but only to the extent
that such adjustments are taken into account in determining Capital Accounts
pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations; provided, however,
that Gross Asset Values shall not be adjusted pursuant to this subsection (d) to
the extent the General Partner, subject to Approval by Partnership Vote,
determines that an adjustment pursuant to subsection (b) hereof is necessary or
appropriate in connection with a transaction that would otherwise result in an
adjustment pursuant this subsection (d).

        (e) After the Gross Asset Value of an asset has been determined or
adjusted pursuant to subsections (a), (b), or (d) hereof, Gross Asset Value will
be adjusted by the Depreciation taken into account with respect to the asset for
purposes of computing Profits or Losses. If the Gross Asset Value of an asset
has been determined or adjusted pursuant to subsections (a), (b), (c) or (d) of
this provision, such Gross Asset Value shall thereafter be computed in
accordance with Section 1.704-1(b)(2)(iv) of the Regulations.

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        "HPT" means HPT Management Services LP, a Texas limited partnership.

        "IMPROVEMENTS" means any improvements and related amenities now located
or to be constructed on the Property.

        "INITIAL CAPITAL CONTRIBUTIONS" means all amounts contributed (or deemed
to be contributed) to the Partnership as a Capital Contribution by the Partners
under Section 3.1.

        "INITIAL CAPITAL CONTRIBUTION ACCOUNT" means, for each Partner (a) the
Initial Capital Contribution made by such Partner pursuant to Section 3.1 of
this Agreement, less (b) the aggregate distributions made to such Partner
pursuant to Section 6.1(b) of this Agreement.

        "IRR" means an internal rate of return of the specified percentage per
annum on Capital Contributions as calculated using Microsoft Excel, IRR
Function, or, if the General Partner believes such method of calculation is not
appropriate, then any other method of calculation selected by the General
Partner, subject to Approval by Partnership Vote. For purposes of computing IRR,
the General Partner shall take into account all Capital Contributions made by a
Partner to the Partnership pursuant to Sections 3.1 and 3.2 and all
distributions received by a Partner pursuant to Sections 6.1 and 12.2. A
Partner's Initial Capital Contributions shall be deemed invested on the closing
date of the acquisition of the Property by the Partnership, and all Additional
Capital Contributions and all distributions shall be deemed to have been made of
the last day of the month in which the same are made or received.

        "LEASING AGREEMENT" means a leasing agreement by and between the
Partnership and Peloton providing for the performance by Peloton of leasing
services with respect to the Property and payment by the Partnership to Peloton
of leasing commissions (not to exceed market rate commissions) with respect to
executed leases of the Property.

        "LIMITED PARTNERS" means BH Fund and Realty America, and any other
Person who is admitted as a limited partner in the Partnership pursuant to the
provisions of Article VIII.

        "MAJOR DECISION" has the meaning set forth in Section 4.3 of this
Agreement.

        "MAJORITY IN INTEREST" shall mean Limited Partners owning more than
sixty percent (60%) of the initial Residual Percentages (as set forth in clause
(a) of the definition of Residual Percentages).

        "MANAGEMENT AGREEMENT" means that certain Amended and Restated Property
Management and Leasing Agreement, by and between the Partnership and HPT, in the
form attached hereto as EXHIBIT B.

        "MORTGAGE LOAN" shall mean that certain mortgage in the approximate
amount of Six Million Dollars ($6,000,000) encumbering the Property to be
borrowed by the Partnership in connection with the acquisition of the Property
by the Partnership.

        "NONRECOURSE DEDUCTIONS" has the meaning set forth in Sections
1.704-2(b)(1) and 1.704-2(c) of the Regulations. Subject to the preceding
sentence, the amount of Nonrecourse Deductions for a Partnership fiscal year
equals the excess, if any, of the net increase, if any, in the amount of
Partnership Minimum Gain during the fiscal year (determined under Section
1.704-2(d) of the Regulations) over the aggregate amount of any distributions
during the fiscal year of proceeds of a Nonrecourse Liability that are allocable
to an increase in Partnership Minimum Gain (determined under Section 1.704-2(h)
of the Regulations).

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        "NONRECOURSE LIABILITY" has the meaning set forth in Section
1.704-2(b)(3) of the Regulations.

        "OPERATING BUDGET" means the annual budget, prepared by the General
Partner and with respect to which Approval by Partnership Vote has been
obtained, and setting forth the estimated capital and operating expenses of the
Partnership for the then current or immediately succeeding calendar year and for
each month and each calendar quarter of such calendar year, in such detail as
determined by Approval by Partnership Vote.

        "OPERATING EXPENSES" means all the cash expenditures made or required to
be made by the Partnership in connection with the operation of the Partnership
in the ordinary course of business, including without limitation, cash
expenditures made or required to be made by the Partnership in connection with
the ownership, management, improvement, operation, maintenance, financing and
upkeep of the Property, as well as debt service (principal and interest) and
capital expenditures of the Partnership; provided, however, Operating Expenses
shall not include (a) any overhead or general administrative costs or expenses
of the General Partner or salaries or other compensation paid to its employees,
officers, directors or shareholders (unless specifically provided for in this
Agreement); (b) any expenditures paid or payable from cash Reserves of the
Partnership (provided that to the extent any capital expenditures are made in
excess of any such Reserves established for such capital expenditures, such
excess amounts shall be included as an Operating Expense); and (c) non-cash
items such as depreciation and amortization.

        "PARTIALLY ADJUSTED CAPITAL ACCOUNTS" means, with respect to any Partner
as of an Adjustment Date, the Capital Account of such Partner as of the
beginning of the fiscal year ending on such Adjustment Date (where such Capital
Account does not reflect such Partner's share of either cumulative Partner
Minimum Gain or cumulative Partnership Minimum Gain), after giving effect to all
allocations of items of income, gain, loss or deduction not included in Profits
and Losses and all Capital Contributions and distributions during such period,
but before giving effect to any allocations of Profits or Losses for such period
pursuant to Section 7.1 hereof, increased by (a) such Partner's share of
Partnership Minimum Gain as of the end of such fiscal year, and (b) such
Partner's share of Partner Minimum Gain as of the end of such fiscal year.

        "PARTNER" means each of the General Partner and the Limited Partners,
and "PARTNERS" means collectively all of such Partners.

        "PARTNER MINIMUM GAIN" means an amount, with respect to each Partner
Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if
such Partner Nonrecourse Debt were treated as a Nonrecourse Liability.

        "PARTNER NONRECOURSE DEBT" has the meaning set forth in Section
1.704-2(b)(4) of the Regulations.

        "PARTNER NONRECOURSE DEDUCTIONS" has the meaning set forth in Section
1.704-2(i) of the Regulations. Subject to the foregoing, the amount of Partner
Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a
Partnership fiscal year equals the excess, if any, of the net increase, if any,
in the amount of Partner Minimum Gain attributable to such Partner Nonrecourse
Debt during that fiscal year over the aggregate amount of any distribution
during that fiscal year to the Partner that bears the economic risk of loss for
such Partner Nonrecourse Debt to the extent such distributions are from the
proceeds of such Partner Nonrecourse Debt and are allocable to an increase in
Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined
in accordance with Section 1.704-2(i) of the Regulations.

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        "PARTNERSHIP" means Behringer Harvard 1221 Coit LP, a Texas limited
partnership.

        "PARTNERSHIP MINIMUM GAIN" has the meaning set forth in Section
1.704-2(d) of the Regulations. Subject to the foregoing, Partnership Minimum
Gain shall equal the amount of gain, if any, which would be recognized by the
Partnership with respect to each nonrecourse liability of the Partnership (or
Property owner) if the Partnership were to Transfer the Partnership property (or
the Property owner were to Transfer the Property owner property) which is
subject to such nonrecourse liability in full satisfaction thereof.

        "PARTNERSHIP VOTE" shall mean a vote of the Partners. A Partnership Vote
may be conducted at a meeting of the General Partner and the Limited Partners,
which meeting may take place by means of telephone conference, video conference
or similar communications equipment by means of which all Persons participating
therein can hear each other. Alternatively, a Partnership Vote may be conducted
by notice sent by the General Partner to the Limited Partners, which notice
shall set forth (a) the matter with respect to which the Partnership Vote is to
be made and (b) the time period within which the General Partner and the Limited
Partners must respond to the notice. Such time period shall not be less than
seven (7) business days or more than fourteen (14) business days. If the General
Partner or any Limited Partner does not respond to the notice within the time
period specified in the notice, such Partner shall be deemed to have given its
written consent in favor of the matter set forth in the notice. If a written
consent or consents setting forth the matter to be determined is signed by the
General Partner and a Majority in Interest of the Limited Partners, Approval by
Partnership Vote shall be deemed to have been obtained with respect to such
matter.

        "PELOTON" means Peloton Real Estate Partners, a Texas general
partnership.

        "PERSON" means any individual or entity, and the heirs, executors,
administrators, legal representatives, successors and assigns of such Person
where the context so admits, and, unless the context otherwise requires, the
singular shall include the plural, and the masculine gender shall include the
feminine and the neuter and vice versa.

        "PROFITS" AND "LOSSES" means, for each fiscal year or other period, an
amount equal to the Partnership's taxable income or loss for such year or
period, determined in accordance with Code Section 703(a) (for this purpose, all
items of income, gain, loss or deduction required to be stated separately
pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
with the following adjustments:

        (a) Any income of the Partnership that is exempt from federal income tax
and not otherwise taken into account in computing Profits and Losses pursuant to
this subsection (a) shall be added to such taxable income or loss;

        (b) Any expenditure of the Partnership described in Code Section
705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to
Regulations Section 1.704(b)(2)(iv)(i), and not otherwise taken into account in
computing Profits or Losses pursuant to this subsection (b) shall be subtracted
from such taxable income or loss;

        (c) In the event the Gross Asset Value of any of the Partnership assets
is adjusted pursuant to subsections (b) or (c) of the definition of Gross Asset
Value, the amount of such adjustment shall be taken into account as gain or loss
from the disposition of such asset for purposes of computing Profits or Losses;

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        (d) Gain or loss resulting from any disposition of Partnership assets
with respect to which gain or loss is recognized for federal income tax purposes
shall be computed by reference to the Gross Asset Value of the property disposed
of, notwithstanding that the adjusted tax basis of such property differs from
its Gross Asset Value;

        (e) In lieu of the depreciation, amortization and other cost recovery
deductions taken into account in computing such taxable income or loss, there
shall be taken into account depreciation computed in accordance with Section
1.704-1(b)(2)(iv)(g) of the Regulations for such fiscal year or other period;
and

        (f) Notwithstanding anything contained herein to the contrary, any items
which are specially allocated pursuant to Sections 7.3(a), 7.3(b), 7.3(c),
7.3(d), 7.3(e) and 7.3(f) shall not be taken into account in computing Profits
or Losses.

        "PROPERTY" means the tract of land (and all rights and appurtenances
incident thereto) described in EXHIBIT A attached hereto and all Improvements
located, or to be constructed, or developed thereon.

        "PURCHASE AGREEMENT" means that certain Agreement of Sale and Purchase
by and between Realty America Group (1221 Coit Road), LP, a Texas limited
partnership, as purchaser, and 98 Cusa Plano, L.P., a Delaware limited
partnership, as seller, dated as of July 6, 2004, together with all amendments
thereto, it being agreed that the right, title and interest of Realty America
Group (1221 Coit Road), LP, in and to the Purchase Agreement shall be assigned
to the Partnership concurrently with the execution of this Agreement..

        "REGULATIONS" means the federal income tax regulations, including
temporary regulations, promulgated under the Code, as such regulations may be
amended from time to time (including corresponding provisions of succeeding
regulations).

        "RESERVES" means funds set aside or amounts allocated to reserves for
working capital, taxes, insurance, debt service or other costs and expenses
incident to the ownership and operation of the Property. The amount of funds to
be set aside in Reserves shall be determined by the General Partner subject to
Approval by Partnership Vote.

        "RESIDUAL PERCENTAGE" means (a) the following percentages until such
time as the Limited Partners have received the Threshold Return: (i) as to the
General Partner, one-tenth of one percent (0.1%); (ii) as to BH Fund, eighty
nine and nine-tenths percent (89.9%); and (iii) as to Realty America, ten
percent (10%); and (b) the following percentages after the Limited Partners have
received the Threshold Return: (i) as to the General Partner, one-tenth of one
percent (0.1%); (ii) as to BH Fund, sixty two and nine-tenths percent (62.9%);
and (iii) as to Realty America, thirty seven percent (37%).

        "TARGET ACCOUNT" means, with respect to any Partner as of any Adjustment
Date, a balance (which may be positive or negative) equal to the hypothetical
amount that such Partner would receive upon the liquidation of the Partnership,
assuming that (a) all assets of the Partnership were sold for an amount equal to
their respective Gross Asset Values, (b) all liabilities of the Partnership
allocable to those properties became due and were satisfied in accordance with
their terms (limited with respect to each non-recourse liability, to the Gross
Asset Value of the asset securing such liability), and (c) all net assets of the
Partnership were distributed pursuant to Section 6.1 hereof, computed after the
Capital Contributions have been made for the period ending on such Adjustment
Date. The General Partner shall determine Gross Asset Value from year to year or
at any point in time as needed.

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        "THRESHOLD RETURN" means an IRR of twenty five percent (25%).

        "TRANSFER" means, with respect to a particular property, right or
interest, the assignment, sale, transfer, pledge, disposition, hypothecation,
mortgage, pledge or the grant of a lien or security interest in such right or
interest (or any part thereof), whether voluntarily, involuntarily or by
operation of law, and whether for consideration or no consideration.

                                  ARTICLE II.

                                    PARTNERS

        2.1     GENERAL PARTNER.The name and address of the General Partner is
as follows:

                Name                                   Address
                ----                                   -------

 Behringer Harvard 1221 Coit GP, LLC         15601 Dallas Parkway, Suite 600,
                                             Addison, Texas 75001
                                             Attn: Chief Legal Officer

        2.2     LIMITED PARTNERS. The names and addresses of the Limited
Partners are as follows:

                Name                                   Address
                ----                                   -------
 Behringer Harvard Short-Term Opportunity    15601 Dallas Parkway, Suite 600,
             Fund I LP                       Addison, Texas 75001
                                             Attn:  Chief Legal Officer

 Realty America Group (1221 Coit Road), LP   4809 Cole Avenue, Suite 200
                                             Dallas, Texas 75205
                                             Attn: Webb M. Sowden, III

                                  ARTICLE III.

                                     CAPITAL

        3.1     INITIAL CAPITAL CONTRIBUTIONS. Prior to acquisition of the
Property by the Partnership, the Partners shall make Initial Capital
Contributions to the Partnership of cash in the amounts set forth opposite their
respective names on EXHIBIT C attached hereto and made a part hereof.

        3.2     ADDITIONAL CAPITAL CONTRIBUTIONS.

                (a)     If at any time the General Partner determines that the
Partnership requires funds to close the acquisition of the Property or for
Operating Expenses, or that within ninety (90) days the Partnership will require
funds for Operating Expenses (collectively, "CASH NEEDS"), then the General
Partner shall use reasonable efforts to secure third party or Partner loans to
fulfill such Cash Needs. If such efforts to secure third party or Partner loans
are unsuccessful, the General Partner may send the Limited Partners written
notice ("ADDITIONAL CAPITAL NOTICE") requesting that the Limited Partners,
together with the General Partner, contribute in cash such amounts as are
necessary to satisfy such Cash Needs and describing the purpose for which the
funds are needed. If so requested, the General Partner and each Limited Partner
shall be obligated to make an Additional Capital Contribution equal to the
product of its

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Residual Percentage and the amount of the Cash Needs. The time for the payment
of any Additional Capital Contribution to the Partnership shall be determined by
the General Partner, but shall in no event be less than ten (10) days after the
delivery of the Additional Capital Notice.

                (b)     If the General Partner or a Limited Partner fails to
timely contribute all or any portion of any Additional Capital Contribution
required of such Partner, then such Partner shall be considered a "DELINQUENT
PARTNER." The Partnership may, upon notice to a Delinquent Partner, exercise
either one of the following remedies as its sole remedy:

                        (i)     permit the non-Delinquent Partner(s) to advance
that portion of the Additional Capital Contribution that is in default as a loan
(a "DEFAULT LOAN") with the following results: (A) the sum thus advanced shall
constitute a loan to the Delinquent Partner; (B) such loan and all accrued
unpaid interest thereon shall be due on demand, or if no demand is made, twelve
(12) months after such advance is made; (C) the loan shall bear interest at the
lesser of twelve percent (12%) per annum or the highest rate permitted by
applicable law, from the date made until the date fully repaid compounding
monthly; (D) all Partnership distributions and other payments that otherwise
would be made to the Delinquent Partner (whether before or after dissolution of
the Partnership) under this Agreement (including those under Article 6) shall be
paid to the non-Delinquent Partner until the loan and all interest accrued
thereon is paid in full (with all such payments being applied first to accrued
and unpaid interest and then to principal and being deemed to be a distribution
or payment (as may apply) to the Delinquent Partner, and, in turn, a payment by
the Delinquent Partner with respect to the loan from the non-Delinquent
Partner); and (E) the non-Delinquent Partner may, in addition to the other
rights granted herein, take such action as the non-Delinquent Partner may deem
appropriate to obtain payment of the loan at the expense of the Delinquent
Partner; or

                        (ii)    permit the non-Delinquent Partner to contribute
that portion of the Additional Capital Contribution that is in default as an
Additional Capital Contribution made by the non-Delinquent Partner, in which
case the non-Delinquent Partner shall have its Residual Percentage increased and
the Delinquent Partner shall have its Residual Percentage decreased in the
following manner: (A) the Residual Percentage of the non-Delinquent Partner
immediately following such Additional Capital Contributions shall be increased
by an amount equal to 110% x A/B, where `A' equals the amount the non-Delinquent
Partner contributed in respect of the Delinquent Partner's required Additional
Capital Contribution, and `B' equals the sum of all unreturned Capital
Contributions previously made to the Partnership after giving effect to the
amounts advanced under this Section 3.2(b)(ii) on behalf of the Delinquent
Partner; and (B) the Residual Percentage of the Delinquent Partner shall be
decreased by the increase of the non-Delinquent Partner's Residual Percentage.

                (c)     The exercise by the Partnership of the remedies set
forth in Section 3.2(b) above shall be determined by the non-Delinquent Partner
in its sole discretion and not by the Delinquent Partners.

                (d)     With respect to any efforts by the General Partner to
obtain loans to the Partnership from a third party or a Partner (including the
General Partner), the financing terms must be substantially similar to (or more
favorable than) loans which the Partnership could obtain on a competitive
arms-length basis. If the General Partner is unable to determine whether the
financing terms are competitive on an arms-length basis, the General Partner may
seek a Partnership Vote on the issue, or may seek and rely upon the advice of an
independent expert in financing. If any Partner makes any loan or loans to the
Partnership or advances money on its behalf, the amount of any loan or advance
shall not be treated as a Capital Contribution but shall be treated as a debt
due from the Partnership to such Partner.

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        3.3     CAPITAL ACCOUNTS. The Partnership shall establish and maintain
on its books and records for each Partner a capital account (collectively the
"CAPITAL ACCOUNTS") in accordance with Section 1.704-1(b)(2)(iv) of the
Regulations. Subject to the foregoing, each Partner's Capital Account generally
shall be:

                (a)     increased by (i) the amount of money contributed by such
Partner to the Partnership, including Partnership liabilities assumed by such
Partner; (ii) the fair market value of property (net of liabilities securing
such property that the Partnership has assumed, or taken subject to, under
Section 752 of the Code), or other consideration contributed by such Partner to
the Partnership; and (iii) allocations to such Partner of Net Profits (and items
thereof, including certain tax exempt income) and income and gain described in
Section 1.704-1(b)(2)(iv)(g) of the Regulations; and

                (b)     decreased by (i) the amount of money distributed to such
Partner by the Partnership, including such Partner's individual liabilities
assumed by the Partnership; (ii) the fair market value of all property
distributed to such Partner by the Partnership (net of liabilities that such
Partner is considered to assume or take subject to under Section 752 of the
Code); and (iii) allocations to such Partner of Net Losses and deductions,
including expenses described in Section 705(a)(2)(B) of the Code which are not
deductible for tax purposes.

        3.4     INTEREST ON AND WITHDRAWAL OF CAPITAL CONTRIBUTIONS. Neither the
General Partner nor the Limited Partners shall be entitled to receive any
interest on Capital Contributions, nor shall the General Partner or the Limited
Partners be entitled to withdraw or otherwise receive a return of their Capital
Contributions from the Partnership, except pursuant to the terms and conditions
of this Agreement. No Partner shall be required to contribute or lend any cash
or property to the Partnership to enable the Partnership to return any Partner's
Capital Contributions.

        3.5     RESIGNATION; REDEMPTION. Except as otherwise expressly permitted
by this Agreement, no Partner may resign or withdraw from the Partnership
without Approval by Partnership Vote. A Partner's interest in the Partnership
may not be redeemed or purchased by the Partnership without prior Approval by
Partnership Vote.

        3.6     TRANSFERS. If any interest in the Partnership is Transferred in
accordance with the terms of this Agreement, the Transferee will succeed to the
Capital Account of the Transferor to the extent it relates to the Transferred
interest.

                                   ARTICLE IV.

                                   MANAGEMENT

        4.1     GENERAL POWERS OF GENERAL PARTNER. Except as provided in Section
4.3 hereof, the General Partner, acting alone, shall be authorized and empowered
to make all decisions and to act on behalf of the Partnership and be solely
responsible for the operation and management of the business of the Partnership,
with all rights and powers generally conferred by applicable law or necessary,
advisable or consistent in connection therewith, including without limitation to
cause the Partnership to make all decisions, take all actions as may be
necessary for the Partnership to perform fully, and promptly satisfy and
discharge each and every obligation or responsibility of the Partnership. The
General Partner may take all necessary and appropriate action to consummate a
Major Decision if the Major Decision was approved (or deemed approved) in
advance pursuant to Section 4.3 hereof. For any other action that does not or
would not constitute a Major Decision, the General Partner may take all
necessary and appropriate action without further authorization.

                                       10
<PAGE>

        4.2     SPECIFIC POWERS OF THE GENERAL PARTNER. By way of illustration
of the General Partner's power and authority pursuant to Section 4.1 and not as
a limitation thereon, the General Partner shall have the unilateral right and
power to take any and all of the following actions on behalf of the Partnership
except to the extent any such action requires Approval by Partnership Vote
pursuant to Section 4.3 of this Agreement:

                (a)     to consummate the transaction contemplated in the
Purchase Agreement and the Mortgage Loan and to execute all documents necessary
or advisable in connection therewith; provided, however, that no material change
in the terms of the Purchase Agreement shall be made without Approval by
Partnership Vote.

                (b)     to take actions normal or customary for the owner of
businesses similar to that operated by the Partnership;

                (c)     to perform any and all acts necessary or appropriate in
connection with the business of the Partnership;

                (d)     to procure and maintain appropriate insurance covering
the property of the Partnership;

                (e)     to take and hold all property and assets of the
Partnership, real, personal and mixed, in the name of the Partnership;

                (f)     to coordinate all accounting and clerical functions of
the Partnership and employ and contract such accountants, lawyers, managers,
agents and other management or service personnel as may from time to time be
required to carry on the business of the Partnership;

                (g)     to negotiate and execute leases of the Property; and

                (h)     to engage in any kind of activity and to perform and
carry out contracts of any kind necessary to, or in connection with, or
incidental to, the development and operation of the Property as may be lawfully
carried on or performed by a limited partnership under the laws of each state in
which the Partnership is then formed, qualified, or does business.

        4.3     MAJOR DECISIONS. All "Major Decisions" (hereinafter defined)
with respect to the Partnership business shall require Approval by Partnership
Vote. All Major Decisions shall be made by the Partners in a timely manner with
due regard for the necessity of obtaining and evaluating the information
necessary for making such Major Decisions. A "MAJOR DECISION" as used in this
Agreement means any decision with respect to the following matters:

                (a)     any merger or consolidation of the Partnership with
another entity;

                (b)     any acquisition of any real property other than the
Property;

                (c)     any borrowing by the Partnership or guarantee of debt of
any other Person, or permitting the Partnership to incur any debt or other
obligations other than the Mortgage Loan or trade payables with respect to the
Property (each of which is expressly approved hereby); provided, however, that
the General Partner may, without such action being Approved by Partnership Vote,
(i) obtain interim financing not to exceed eighty five percent (85%) of the
total cost of the Property and secure a first lien mortgage to pay off the
interim debt, which first lien mortgage shall not be at a rate in excess of 200
basis points over the corresponding treasury rate, (ii) refinance the Property
at a lower interest rate, and (iii)

                                       11
<PAGE>

refinance the Property, if as a result of such refinancing the personal
guarantees of the Partners or their Affiliates are removed, provided, however,
that the terms of such refinancing shall be subject to Approval by Partnership
Vote.

                (d)     except for expenditures made and obligations incurred
pursuant to an Operating Budget, making any expenditure or incurring any
obligation by or for the Partnership, or approving any such expenditure or
obligation to be made or incurred by the Partnership, in excess of 105% of the
amount set forth in an Operating Budget therefor (the "105% LIMITATION");
provided, that the General Partner may (without prior Approval by Partnership
Vote) make expenditures that it reasonably determines are necessary or
appropriate that exceed such 105% Limitation provided that the aggregate amount
of such expenditures do not exceed the lesser of: (i) fifteen percent (15%) of
the Operating Budget, or (ii) Fifty Thousand Dollars ($50,000.00) in any
12-month period; provided, further, that if emergency repairs to the Property
are necessary to avoid imminent danger of injury to the Property or to an
individual, the General Partner may make such expenditures as may be necessary
to alleviate such situation (without regard to the foregoing limitations) and
shall promptly notify the Limited Partners in writing of the event giving rise
to such repairs and the actions taken with respect thereto;

                (e)     causing the Partnership to file a voluntarily bankruptcy
petition, seeking or consenting to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator, custodian or any similar official for the
Partnership or a substantial portion of its assets, causing the Partnership to
file a petition or answer seeking for itself any reorganization, arrangement,
composition, readjustment, liquidation or similar relief under any statute, law
or regulation, causing the Partnership to file an answer or other pleading
admitting or failing to contest the material allegations of a petition filed
against it in any proceeding of this nature or to take any action in furtherance
of the foregoing;

                (f)     causing the Partnership to file any lawsuit, other than
lawsuits arising from the normal day-to-day operation of the Property, such as
suits to collect unpaid rent and eviction suits;

                (g)     any payment by the Partnership of any compensation to a
Partner or an Affiliate of a Partner, or any transaction between the Partnership
and any Partner or Affiliate of a Partner, except to the extent that any payment
to, or transaction with, a Partner is set forth in an approved Operating Budget
or expressly authorized or approved pursuant to the terms of this Agreement;

                (h)     executing or approving any agreement or contract with
any Person to be an agent for the Partnership or to be other than an independent
contractor, or which permits any such Person to sign any agreement or contract,
including, without limitation, brokerage, listing or commission agreements or
service contracts, on behalf of the Partnership;

                (i)     the dedication of any portion of the Property to any
federal, state or local government or political subdivision;

                (j)     approval of a management or leasing agreement related to
the Property;

                (k)     executing or approving any agreement, contract, or
arrangement, with a term of more than one year that is not terminable with
30-days notice without penalty;

                (l)     assigning the Partnership's rights in specific
Partnership property for other than Partnership purposes;

                (m)     any act in contravention of this Agreement;

                                       12
<PAGE>

                (n)     any act which would make it substantially impractical to
carry on the ordinary business of the Partnership, other than a Transfer of all
or substantially all of the assets of the Partnership with respect to which
Approval by Partnership Vote has been obtained;

                (o)     any confession of a judgment against the Partnership;

                (p)     making, executing or delivering any assignment for the
benefit of creditors of the Partnership, or signing any bond, confession of
judgment, indemnity bond or surety bond by or on behalf of the Partnership;

                (q)     any Transfer (other than leases of the Property executed
in the ordinary course of business) of all or any part of (i) the Property, or
(ii) any other Partnership asset the value of which exceeds $25,000;

                (r)     any admission of any new Partner to the Partnership;

                (s)     the dissolution or termination of the Partnership

                (t)     the approval of any tax election that adversely affects
a Limited Partner;

                (u)     any change in the nature, purpose or scope of business
of the Partnership; and

                (v)     any other decision or action which by the provisions of
this Agreement is required to be authorized by Approval by Partnership Vote.

        4.4     OPERATING BUDGETS. The Partnership shall operate under annual
Operating Budgets which shall be prepared in accordance with the Management
Agreement. After an annual Operating Budget has been approved, the General
Partner shall implement it on behalf of the Partnership and may cause the
Partnership to incur the expenditures and obligations therein provided. The
General Partner shall submit (or request the manager of the Property to submit)
to the Limited Partners any proposed Operating Budget for each calendar year by
November 15 of the preceding calendar year. Provided that each of the Limited
Partners receives the proposed Operating Budget for each calendar year by
November 15 of the preceding calendar year, together with all supporting
information necessary for the Limited Partners to review the Operating Budget,
each Limited Partner will approve, reject, or provide changes to the Operating
Budget by December 15 of the year in which the proposed Operating Budget was
submitted to the Limited Partners. If an Operating Budget for any calendar year
has not been approved by a Majority in Interest by January 1 of that year, the
Partnership shall continue to operate under the Operating Budget for the
previous year with such adjustments as may be necessary to reflect deletion of
non-recurring expense items set forth on the previous Operating Budget and
increased insurance costs, taxes, utility costs, and debt service payments.

        4.5     LIMITED PARTNER PARTICIPATION IN MANAGEMENT. The Limited
Partners, as limited partners, shall not participate in the operation or
management of the business of the Partnership, or transact any business for or
in the name of the Partnership, and the Limited Partners, as the limited
partners, shall not have any right or power to sign for or bind the Partnership
in any manner, except as expressly provided under the provisions of this
Agreement. Any rights of the Limited Partners to consent to and approve of
certain matters under the provisions of this Agreement shall not be deemed a
participation in the operation and management of the business of the Partnership
or the exercise of control of the Partnership business. Except as may be
otherwise expressly provided herein, the Limited Partners shall not have the
right to vote on any matter concerning the management and affairs of the
Partnership.

                                       13
<PAGE>

        4.6     PAYMENT OF COSTS AND EXPENSES. The Partnership will be
responsible for paying all costs and expenses of forming and continuing the
Partnership, acquiring the Property, and conducting the business of the
Partnership, including, without limitation, accounting costs, legal expenses and
office supplies. In the event any such costs and expenses are incurred and paid
by the General Partner on behalf of the Partnership, then, except as expressly
provided to the contrary in this Agreement, such Partner shall be entitled to be
reimbursed for such payment so long as such cost or expense was reasonably
necessary and is reasonable in amount. The Partnership may use the proceeds of
any revenues of the Partnership to reimburse a Partner for any such costs and
expenses so paid.

        4.7     TRANSACTIONS WITH AFFILIATES. Any agreement whereby any service
or activity to be performed for the Partnership is to be performed by an
Affiliate of a Partner shall require Approval by a Partnership Vote. The
Partners hereby acknowledge and agree that Approval by Partnership Vote has been
obtained with respect to the Management Agreement.

        4.8     FEES PAYABLE BY THE PARTNERSHIP.

                (a)     Upon the acquisition of the Property, the Partnership
shall pay a brokerage commission equal to one percent (1%) of the purchase price
for the Property (as defined in the Purchase Agreement), with fifty percent
(50%) of such fee being paid to Realty America (or its designated Affiliate) and
fifty percent (50%) of such fee being paid to Peloton (or its designated
Affiliate).

                (b)     The Partnership shall contract with HPT for HPT to
perform management services in respect of the Property in accordance with the
Management Agreement, pursuant to which HPT will receive a management fee from
the Partnership as set forth in the Management Agreement.

                (c)     The Partners acknowledge and agree that HPT may, at its
option, subcontract with an affiliate of the Trammell Crow Company to perform
management services in respect of the Property in accordance with the Management
Agreement.

                (d)     The Partnership shall enter into the Leasing Agreement
with Peloton (and the General Partner is hereby authorized to execute the
Leasing Agreement on behalf of the Partnership).

                (e)     The Partnership shall pay to Behringer Harvard Advisors
II LP, an affiliate of the General Partner, an annual asset management fee equal
to one-half of one percent (0.5%) of gross revenues from the Property, payable
on each anniversary of the date of this Agreement, but in no event an amount in
excess of one-half of one percent (0.5%) of the value of the Property per year.

                (f)     Realty America and Peloton shall be entitled to act as
listing agents in connection with any sale of the Property. Accordingly, Realty
America and Peloton shall perform such services as are customarily performed by
listing agents for property similar to the Property in the Dallas/Fort Worth
area, and such services shall be substantial services in connection with the
sales effort performed on behalf of the Partnership as agent for the General
Partner (or Affiliate designated by the General Partner) in respect of the
disposition of the Property. In consideration of such efforts, the Partnership
shall pay to Realty America and Peloton a market rate sales commission, payable
if and when the closing of the sale of the Property occurs, with fifty percent
(50%) of such fee being paid to Realty America (or its designated Affiliate) and
fifty percent (50%) of such fee being paid to Peloton (or its designated
Affiliate). Notwithstanding the preceding sentence: (a) in no event shall the
total sales commission payable by the Partnership pursuant to the preceding
sentence exceed two percent (2%) of the gross sales proceeds received by the
Partnership for the Property; and (b) if any broker other than Realty America or
Peloton is involved in the sale of the Property, Realty America and Peloton
shall be obligated to pay any commission due to such broker.

                                       14
<PAGE>

        4.9     OTHER COMPENSATION. Except as provided in this Agreement, no
Partner or its Affiliate shall be entitled to any compensation unless Approval
by Partnership Vote is obtained with respect thereto.

                                   ARTICLE V.

                          RIGHTS AND POWERS OF PARTNERS

        5.1     LIMITATION OF LIABILITY.

                (a)     LIMITATION ON LIABILITY OF LIMITED PARTNERS. The Limited
Partners shall not be bound by, or personally liable for, obligations or
liabilities of the Partnership to outside third parties beyond the amount of
their Capital Contributions to the Partnership, and the Limited Partners shall
not be required to contribute any capital to the Partnership for any obligations
to third parties in excess of the Capital Contributions actually made under
Sections 3.1 and 3.2 hereof.

                (b)     LIMITATION ON LIABILITY OF GENERAL PARTNER. The General
Partner (including its members, officers, directors, agents, employees and
representatives) shall not be liable or responsible in damages or otherwise to
the Partnership or any Partner for any liability or loss relating to the
performance or nonperformance of any act concerning the business of the
Partnership, provided the General Partner was not guilty of gross negligence or
willful misconduct.

        5.2     INDEMNIFICATION.

                (a)     The General Partner (including its members, partners,
officers, directors, agents, employees and representatives) shall be indemnified
by the Partnership to the fullest extent permitted by law, against any losses,
judgments, liabilities, expenses and amounts paid in settlement of any claims
sustained by it or any of them in connection with the Partnership, provided that
the General Partner has determined in good faith that such course of conduct was
in, and not opposed to, the best interests of the Partnership and such liability
or loss was not the result of gross negligence or willful misconduct, or a
material breach of this Agreement on the part of the General Partner or such
person, and (2) any such indemnification will only be recoverable from the
assets of the Partnership and the Limited Partners shall not have any liability
on account thereof. All rights to indemnification permitted herein and payment
of associated expenses shall not be affected by the dissolution or other
cessation of the existence of the General Partner, or the withdrawal,
adjudication of bankruptcy or insolvency of the General Partner.

                (b)     Expenses incurred in defending a threatened or pending
civil, administrative or criminal action, suit or proceeding against any person
who may be entitled to indemnification pursuant to this Section 5.2 may be paid
by the Partnership in advance of the final disposition of such action, suit or
proceeding, if (i) the legal action relates to the performance of duties or
services by such person on behalf of the Partnership, (ii) the legal action is
initiated by a third party who is not a Limited Partner, and (iii) such person
undertakes to repay the advanced funds to the Partnership in cases in which it
is not entitled to indemnification under this Section 5.2.

                (c)     The term "General Partner" as used in this Section 5.2
shall include any additional or substitute general partner and any Affiliate of
a General Partner performing services on behalf of the Partnership.

        5.3     OTHER BUSINESS ACTIVITIES. Subject to the other express
provisions of this Agreement, each Partner and any Affiliate thereof may engage
in and possess interests in other business ventures of any and every type and
description, independently or with others, including ones in direct or indirect

                                       15
<PAGE>

competition with the Partnership, with no obligation to offer to the Partnership
or any other Partner the right to participate therein or to account therefor.

        5.4     INFORMATION. In addition to the other rights specifically set
forth in this Agreement, each Partner is entitled to the following information:
(a) true and full information regarding the status of the business and financial
condition of the Partnership; (b) promptly after becoming available, a copy of
the Partnership's federal, state and local income tax returns for each year; (c)
a current list of the name and last known business, residence or mailing address
of each Partner; (d) a copy of this Agreement, the Certificate, and all
amendments to such documents; and (e) other information regarding the affairs of
the Partnership to which that Partner is entitled pursuant to the TRLPA.

        5.5     PRESS RELEASES. No public announcement, press release or other
disclosure of the terms of this Agreement or the activities of the Partnership,
or the plans of the Partnership will be made unless same is proposed by the
General Partner and authorized by Approval by Partnership Vote. However,
notwithstanding the preceding sentence, any Partner shall have the right,
without obtaining the consent of any other Partner, to make such disclosures as
may, in the reasonable judgment of such Partner's counsel, be required by
applicable law.

                                  ARTICLE VI.

                 DISTRIBUTIONS/ALLOCATIONS OF PROFITS AND LOSSES

        6.1     DISTRIBUTIONS OF DISTRIBUTABLE CASH. Within twenty (20) days
following the end of each month (unless Approval by Partnership Vote is
otherwise obtained), the Partnership shall distribute Distributable Cash in the
following order of priority:

                (a)     First, to the Partners in proportion to their respective
Additional Capital Contribution Account balances until their respective
Additional Capital Contribution Account balances are reduced to zero;

                (b)     Next, to the Partners in proportion to their respective
Initial Capital Contribution Account balances until their respective Initial
Capital Contribution Account balances are reduced to zero;

                (c)     Next, to the Partners, pro rata in accordance with their
Residual Percentages (as calculated pursuant to clause (a) of the definition of
such term) until the Partners have received distributions sufficient to provide
the Threshold Return to such Partners; and

                (d)     Next, to the Partners, pro rata in accordance with their
Residual Percentages (as calculated pursuant to clause (b) of the definition of
such term).

                                  ARTICLE VII.

                        ALLOCATION OF PROFITS AND LOSSES

        7.1     ALLOCATION OF PROFITS AND LOSSES. After application of Section
7.3 hereof, Profits and Losses for each fiscal year shall be allocated among the
Partners so as to reduce, proportionately, in the case of any Profits, the
difference between their respective Target Accounts and Partially Adjusted
Capital Accounts for such fiscal year and, in the case of Losses, the difference
between their respective Partially Adjusted Capital Accounts and Target Accounts
for such fiscal year. To the extent that, in the fiscal year in which all or
substantially all of the Partnership's assets are disposed of, or in the fiscal
year in which the Partnership is liquidated, the allocation of Profit or Loss
set forth in the preceding sentence

                                       16
<PAGE>

does not cause each Partner's Partially Adjusted Capital Account balance to
equal the balance of its Target Account, items of income or gain will be
reallocated to any Partner with a Partially Adjusted Capital Account which is
less than its Target Account, and items of loss, deduction or expense will be
reallocated to any Partner with a Partially Adjusted Capital Account that is
greater than its Target Account in such manner as to reduce, to the greatest
extent possible, the difference between each Partner's respective balance in its
Target Account and its Partially Adjusted Capital Account balance.

        7.2     LIMITATION ON LOSS ALLOCATIONS. Notwithstanding anything in this
Agreement to the contrary, no Losses or item of deduction shall be allocated to
a Partner if such allocation would cause the Capital Account of such Partner to
have a deficit in excess of the sum of (a) the amount of additional capital such
Partner would be required to contribute to the Partnership if the Partnership
were to dissolve on the last day of the accounting period to which such
allocation relates plus (b) such Partner's distributive share of Partnership
Minimum Gain as of the last day of such accounting period, determined pursuant
to Regulations Section 1.704-2(g)(1), plus (c) such Partner's share of Partner
Minimum Gain as of the last day of such year, determined pursuant to Regulation
Section 1.704-2(i)(5). Any amounts not allocated to a Partner pursuant to the
limitations set forth in this paragraph shall be allocated to the other Partners
to the extent possible without violating the limitations set forth in this
paragraph. For purposes of the foregoing provisions, the balance of a Partner's
Capital Account shall be determined after reducing such Capital Account by (i)
all anticipated allocations of loss or deduction pursuant to Sections 704(e)(2)
and 706(d) of the Code, and Section 1.751-1(b)(2)(ii) of the Regulations, and
(ii) anticipated distributions to such Partner to the extent such anticipated
distributions exceed anticipated increases to such Partner's Capital Account
during or prior to the year of distribution (other than increases which may not
be taken into account pursuant to Section 1.704-1(b)(2)(ii)(d)(6) of the
Regulations).

        7.3     SPECIAL ALLOCATIONS. The following special allocations shall be
made in the following order:

                (a)     MINIMUM GAIN CHARGEBACK. Except as otherwise provided in
Section 1.704-2(f) of the Regulations, in the event there is a net decrease in
Partnership Minimum Gain during a Partnership taxable year, each Partner shall
be allocated (before any other allocation is made pursuant to this Section 7.3)
items of income and gain for such year (and, if necessary, for subsequent years)
equal to that Partner's share of the net decrease in Partnership Minimum Gain.
The determination of a Partner's share of the net decrease in Partnership
Minimum Gain shall be determined in accordance with Regulations Section
1.704-2(g). The items to be specially allocated to the Partners in accordance
with this Section 7.3(a) shall be determined in accordance with Regulation
Section 1.704-2(f)(6). This Section 7.3(a) is intended to comply with the
Minimum Gain chargeback requirement set forth in Section 1.704-2(f) of the
Regulations and shall be interpreted consistently therewith.

                (b)     PARTNER MINIMUM GAIN CHARGEBACK. Except as otherwise
provided in Section 1.704-2(i)(4), in the event there is a net decrease in
Partner Minimum Gain during a Partnership taxable year, each Partner who has a
share of that Partner Minimum Gain as of the beginning of the year, to the
extent required by Regulation Section 1.704-2(i)(4), shall be specially
allocated items of Partnership income and gain for such year (and, if necessary,
subsequent years) equal to that Partner's share of the net decrease in Partner
Minimum Gain. Allocations pursuant to this subparagraph (b) shall be made in
accordance with Regulation Section 1.704-2(i)(4). This Section 7.3(b) is
intended to comply with the requirement set forth in Regulation Section
1.704-2(i)(4) and shall be interpreted consistently therewith.

                (c)     QUALIFIED INCOME OFFSET ALLOCATION. In the event any
Partner unexpectedly receives any adjustments, allocations or distributions
described in Regulation Sections 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6) or which would cause the

                                       17
<PAGE>

negative balance in such Partner's Capital Account to exceed the sum of (i) his
obligation to restore a Capital Account deficit upon liquidation of the
Partnership, plus (ii) his share of Partnership Minimum Gain determined pursuant
to Regulation Section 1.704-2(g)(1), plus (iii) such Partner's share of Partner
Minimum Gain determined pursuant to Regulation Section 1.704-2(i)(5), items of
Partnership income and gain shall be specially allocated to such Partner in an
amount and manner sufficient to eliminate such excess negative balance in his
Capital Account as quickly as possible. This Section 7.3(c) is intended to
comply with the alternative test for economic effect set forth in Regulation
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

                (d)     GROSS INCOME ALLOCATION. In the event any Partner has a
deficit Capital Account at the end of any Partnership fiscal year which is in
excess of the sum of (i) any amounts such Partner is obligated to restore
pursuant to this Agreement, plus (ii) such Partner's distributive share of
Minimum Gain as of such date, plus such Partner's share of Partner Minimum Gain
determined pursuant to Regulation Section 1.704-2(i)(5), each such Partner shall
be specially allocated items of Partnership income and gain in the amount of
such excess as quickly as possible, provided that an allocation pursuant to this
Section 7.3(d) shall be made only if and to the extent that such Partner would
have a deficit Capital Account in excess of such sum after all other allocations
provided for in this Section 7.3 have been made, except assuming that Section
7.3(c) above and this Section 7.3(d) were not contained in this Agreement.

                (e)     ALLOCATION OF NONRECOURSE DEDUCTIONS. Nonrecourse
Deductions shall be allocated to the Partners in accordance with their
respective Residual Percentages.

                (f)     ALLOCATION OF PARTNER NONRECOURSE DEDUCTIONS. Partner
Nonrecourse Deductions shall be allocated as prescribed by the Regulations.

                (g)     BASIS ADJUSTMENT UNDER SECTION 754. To the extent an
adjustment to the adjusted tax basis of any Partnership assets pursuant to Code
Section 734(b) or Code Section 743(b) is required, pursuant to Regulations
Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital
Accounts, the amount of such adjustment to the Capital Accounts shall be treated
as an item of gain, if the adjustment increases the basis of the asset, or loss,
if the adjustment decreases such basis, and such gain or loss shall be specially
allocated to the Partners in a manner consistent with the manner in which their
Capital Accounts are required to be adjusted pursuant to such Section of the
Regulations.

        7.4     BUILT-IN GAIN OR LOSS/SECTION 704(C) TAX ALLOCATIONS. In the
event that the Capital Accounts of the Partners are credited with or adjusted to
reflect the Gross Asset Value of the Partnership's property and assets, the
Partners' distributive shares of depreciation, depletion, amortization, and gain
or loss, as computed for tax purposes, with respect to such property, shall be
determined pursuant to Section 704(c) of the Code and the Regulations
thereunder, so as to take account of the variation between the adjusted tax
basis and Gross Asset Value of such property in a manner determined by Approval
by Partnership Vote. Any deductions, income, gain or loss specially allocated
pursuant to this Section 7.4 shall not be taken into account for purposes of
determining Profits or Losses or for purposes of adjusting a Partner's Capital
Account.

        7.5     RECAPTURE. Ordinary income arising from the recapture of
depreciation and unrecaptured Section 1250 gain shall be allocated to the
Partners in the manner that is prescribed by the Regulations, or if the
Regulations do not prescribe a manner in which depreciation is to be recaptured,
then depreciation shall be recaptured in the same manner as such depreciation
was allocated to the Partners.

        7.6     RETENTION OF SECTION 751 ASSETS. Upon the occurrence of an event
which would otherwise cause a reduction in a Partner's respective interest in
the Partnership's Section 751 assets

                                       18
<PAGE>

("substantially appreciated inventory" and "unrealized receivables" as defined
in Section 751 of the Code), such as the admission of new Partners or otherwise,
no such reduction shall occur with respect to Partners who were Partners
immediately preceding such event and who continue to be Partners after the
occurrence of such event but, rather, each such Partner shall retain his
respective interest in the Partnership's Section 751 assets existing immediately
prior to such event.

        7.7     PROHIBITION AGAINST RETROACTIVE ALLOCATIONS. Notwithstanding
anything in this Agreement to the contrary, no Partner shall be allocated any
loss, credit or income attributable to a period prior to his admission to the
Partnership. In the event that a Partner Transfers all or a portion of his
Partnership interest, or if there is a reduction in a Partner's Residual
Percentage due to the admission of new Partners or otherwise, each Partner's
distributive share of Partnership items of income, loss, credit, etc., shall be
determined by taking into account each Partner's varying interests in the
Partnership during the Partnership's taxable year. For this purpose, each
Partner's distributive share shall be estimated by taking the pro rata portion
of the distributive share such Partner would have included in his taxable income
had he maintained his Residual Percentage throughout the Partnership year. Such
proration shall be based upon the portion of the year during which such Partner
held the Residual Percentage, except that extraordinary, nonrecurring items
shall be allocated to the persons holding Partnership interests at the time such
extraordinary items occur.

        7.8     ALLOCATION OF NONRECOURSE LIABILITIES. The "excess nonrecourse
liabilities" of the Partnership (within the meaning of Section 1.752-3(a)(3) of
the Regulations) shall be allocated to the Partners in accordance with their
respective Residual Percentages.

                                 ARTICLE VIII.

                        TRANSFER OF PARTNERSHIP INTEREST

        8.1     PROHIBITION ON DISPOSITION OF GENERAL PARTNER'S INTEREST. Unless
Approval by Partnership Vote is otherwise obtained, or except as otherwise
permitted in this Agreement, the General Partner may not, directly or
indirectly, by operation of law or otherwise (a) withdraw or resign from the
Partnership, or (b) Transfer any or all of its interest in the Partnership. In
addition, the General Partner shall not permit the Transfer of any interest in
the General Partner unless Approval by Partnership Vote is obtained with respect
to such Transfer. Any act in violation of this Section 8.1 shall be null and
void as against the Partnership and the Limited Partners, except as otherwise
required by law.

        8.2     GENERAL PARTNER CEASING TO BE A GENERAL PARTNER. Unless Approval
by Partnership Vote is otherwise obtained, a General Partner shall cease to be a
General Partner of the Partnership upon the happening of any of the following
events (hereinafter each referred to as an "EVENT OF WITHDRAWAL"):

                (a)     such General Partner makes an assignment for the benefit
of creditors; files a voluntary petition of bankruptcy; is adjudicated as
bankrupt or insolvent or is the subject of an order for relief under the
bankruptcy laws; files a petition or answer seeking for itself any
reorganization, arrangement or similar relief under any statute, law or
regulation; files an answer or other pleading admitting or failing to contest
the material allegations of a petition filed against it in any proceeding of
this nature; or seeks, consents to or acquiesces in the appointment of a
trustee, receiver or liquidator of all or any substantial part of its
properties;

                (b)     such General Partner fails to dismiss within one hundred
twenty (120) days after the commencement of any proceeding which attempts to
attach or charge the General Partner's Partnership interest or which seeks
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief against the General Partner under any statute, law or
regulation, or if within

                                       19
<PAGE>

ninety (90) days after a court order attaching or charging its Partnership
interest or the appointment without its consent or acquiescence of a trustee,
receiver or liquidator of such General Partner or all or any substantial part of
its properties, the order or appointment is not vacated or stayed, or within
ninety (90) days after the expiration of any such stay, the order or appointment
is not vacated;

                (c)     In the case of any General Partner which is a
corporation, limited partnership or limited liability company, the filing of a
certificate of dissolution or its equivalent for the corporation, limited
partnership or limited liability company, or the revocation of its charter or
authority to do business in the jurisdiction of its formation;

                (d)     The withdrawal of a General Partner from the Partnership
as provided in Section 8.1 above; or

                (e)     The Transfer by a General Partner of all or any part of
its interest in the Partnership except as approved by Partnership Vote pursuant
to Section 8.1.

                Any person ceasing to be a General Partner (other than as a
result of paragraph (d) and (e) of this Section 8.2) shall automatically become
a limited partner of the Partnership having the same percentage interest in the
profits, losses and distributions of the Partnership that it had while it was a
general partner, and provided further that in the event that the Partners elect
to continue the Partnership pursuant to Section 12.1(b) below, and a new General
Partner is admitted to the Partnership to enable the Partnership to continue,
then the General Partner being converted to a limited partner shall Transfer a
..005% Residual Percentage to the newly admitted general partner. Such Transfer
shall not reduce the interest in the Partnership of any Partner other than the
General Partner which is being converted to a limited partner.

        8.3     GENERAL PROHIBITION AGAINST TRANSFERS OF LIMITED PARTNER'S
INTEREST. A Limited Partner may not Transfer any or all of such Partner's
interest in the Partnership except as permitted in Section 8.4. Any act in
violation of this Article shall be null and void as against the Partnership and
the Partners, except as otherwise provided by law.

        8.4     CONDITIONS UPON TRANSFERS BY A LIMITED PARTNER. A Limited
Partner may Transfer all or any part of such Partner's interest in the
Partnership only with the written consent of the General Partner and Approval by
Partnership Vote; provided, however, that the General Partner's written consent
shall not be given unless:

                        (i)     the General Partner is satisfied that the
proposed Transfer will not have any adverse effect upon the Partnership or the
Partners under federal income tax laws then in effect or cause any default in
any loan documents of the Partnership or the Property owner;

                        (ii)    the General Partner has received, if requested,
an opinion from counsel for the Partnership to the effect that such Transfer
will not violate federal or state securities laws or regulations; and

                        (iii)   the person, firm or entity to acquire such
interest agrees to comply with all terms of this Agreement, including without
limitation Section 8.5 below.

        8.5     SUBSTITUTION OF ASSIGNEE. No Transferee of the whole or any
portion of a Limited Partner's interest in the Partnership shall have the right
to be admitted to the Partnership and become a Limited Partner unless and until
all of the Partners in their absolute discretion consent and all of the
following conditions are satisfied:

                                       20
<PAGE>

                (a)     the Transferor and Transferee execute and acknowledge a
written instrument of assignment, together with such other instruments as the
General Partner may deem necessary or desirable to effect the admission of the
Transferee as a substitute Limited Partner; and

                (b)     an instrument specifically Transferring such interest,
signed by both assignor and assignee, shall be filed with the General Partner,
and until such instrument is so filed, the Partnership shall not recognize any
Transfer of interest for the purposes of making payments of profits, income or
any other distribution with respect to such interest.

        8.6     BUY-SELL IN EVENT OF OFFER TO PURCHASE ASSETS.

                (a)     If a BONA FIDE offer is made to the Partnership for the
purchase of the then-remaining portion of the Property still owned by the
Partnership, the General Partner shall notify the Partners of such offer, and if
one or more Partners desires to accept such offer and the other Partners do not,
then the Partners who do not want to accept the offer (whether one or more, the
"PURCHASING PARTNER") shall, at the request of the Partners who want to accept
the offer (whether one or more, the "SELLING PARTNER"), purchase the interest in
the Partnership owned by the Selling Partner. The purchase price payable by the
Purchasing Partner to the Selling Partner shall be an amount equal to the amount
which the Selling Partner would have received had the Property been sold by the
Partnership for the amount offered which the Selling Partner wished to accept.
Closing shall occur at the offices of the Partnership no later than 60 days
following the date notice from the Selling Partner is delivered to the
Purchasing Partner, requesting that the Purchasing Partner purchase the Selling
Partner's Partnership Interest.

                (b)     At the closing, the applicable interests in the
Partnership shall be duly conveyed, free of all liens and encumbrances. The
purchase price shall be paid by wire transfer of immediately available federal
funds, unless a different manner of payment was set forth in the offer or is
otherwise agreed to by the Partnership. At the election of the Purchasing
Partner, the applicable interests in the Partnership to be purchased may be
acquired in the name of a nominee (whether or not such nominee is an Affiliate
of the Purchasing Partner), provided, that the Purchasing Partner shall have
designated such nominee by written notice prior to the date of purchase. It
shall be a condition of the Selling Partner's obligation to proceed with any
such purchase that the Purchasing Partner shall have obtained releases of any
guaranties of indebtedness of the Partnership executed by the Selling Partner or
any Affiliates of (or principals in) the Selling Partner. The Purchasing
Partner, in addition to paying at the closing the purchase price, shall be
obligated to loan to the Partnership an amount sufficient to discharge at the
closing all outstanding and unpaid obligations of the Partnership to the Selling
Partner as of such time.

                (c)     Upon receipt of the purchase price, the Selling Partner
shall execute and deliver all documents reasonably required to transfer the
interest in the Partnership being sold. The Selling Partner shall also execute
such resignations and other documents as may be reasonably required by counsel
for the Partnership to accomplish the withdrawal of the Selling Partner as a
Partner of the Partnership and the Purchasing Partner shall assume all of the
Selling Partner's obligations to the Partnership and any of its creditors under
any loans to the Partnership permitted by this Agreement, such assumptions to be
in form reasonably satisfactory to counsel for the Selling Partner.

                (d)     It is expressly agreed that the remedy at law for breach
of any of the obligations set forth in this Section 8.6 is inadequate in view of
(i) the complexities and uncertainties in measuring the actual damages that
would be sustained by reason of the failure of a Partner to comply fully with
each of said obligations, and (ii) the uniqueness of the Partnership business
and Partners' relationship. Accordingly, each of the aforesaid obligations shall
be, and is hereby expressly made, enforceable by specific performance.

                                       21
<PAGE>

        8.7     BUY-SELL AFTER FIRST ANNIVERSARY.

                (a)     Any Partner (the "OFFEROR") may make an offer in writing
to the other Partners (the "OFFEREE"), which shall state an amount (the
"BUY-SELL VALUE") determined in the sole and absolute discretion of the Offeror.
The Buy-Sell Value shall be the amount that the Offeror chooses to be the value
of the Assets. An offer made pursuant to this Section 8.7 shall constitute an
irrevocable offer by the Offeror to the Offeree either (i) to sell all, but not
less than all, of the Offeror's interests in the Partnership (including any
interests held by, or Transferred to, its Affiliates), or (ii) to purchase all,
but not less than all, of the Offeree's interests in the Partnership (including
any interests held by or Transferred to its Affiliates). The Offeree shall have
fifteen (15) days after receipt of an offer made pursuant to this Section 8.7 to
elect either (i) to sell its interests in the Partnership at a price equal to
the amount the Offeree would have received pursuant to a liquidation of the
Partnership if the Assets had been sold to a third party for the Buy-Sell Value
and the proceeds therefrom had been applied and distributed in accordance with
Section 12.2 (assuming that all allocations resulting from the sale had been
made and no reserves are established); or (ii) to buy the Offeror's interest in
the Partnership at a price equal to the amount the Offeror would have received
pursuant to a liquidation of the Partnership if the Assets had been sold to a
third party for the Buy-Sell Value and the proceeds therefrom had been applied
and distributed in accordance with Section 12.2 (assuming that all allocations
resulting from the sale had been made and no reserves are established). If the
Offeree fails to make such an election within fifteen (15) days after receipt of
an offer under this Section 8.7(a), the Offeree shall be deemed to have elected
to sell its interests in the Partnership. In any case in which there is more
than one purchasing Partner, the purchasing Partners shall determine the
proportions of the interests in the Partnership to be purchased by each such
Partner.

                (b)     Closing shall occur at the offices of the Partnership no
later than 60 days following the date after the election to purchase has been
made or deemed made. At the closing, the applicable interests in the Partnership
shall be duly conveyed, free of all liens and encumbrances, and the purchase
price shall be paid by wire transfer of immediately available federal funds. At
the election of the purchasing Partner, the applicable interests in the
Partnership to be purchased may be acquired in the name of a nominee (whether or
not such nominee is an Affiliate of the Purchasing Partner), provided, that the
Purchasing Partner shall have designated such nominee by written notice prior to
the date of purchase. It shall be a condition of the selling Partner's
obligation to proceed with any such purchase that the purchasing Partner shall
have obtained releases of any guaranties of indebtedness of the Partnership
executed by the selling Partner or any Affiliates of (or principals in) such
selling Partner. The purchasing Partner, in addition to paying at the closing
the purchase price, shall be obligated to loan to the Partnership an amount
sufficient to discharge at the closing all outstanding and unpaid obligations of
the Partnership to the selling Partner as of such time.

                (c)     Upon receipt of the purchase price, the selling Partner
shall execute and deliver all documents reasonably required to transfer the
interest in the Partnership being sold. The selling Partner shall also execute
such resignations and other documents as may be reasonably required by counsel
for the Partnership to accomplish the withdrawal of the selling Partner as a
Partner of the Partnership and the purchasing Partner shall assume all of the
selling Partner's obligations to the Partnership and any of its creditors under
any loans to the Partnership permitted by this Agreement, such assumptions to be
in form reasonably satisfactory to counsel for the selling Partner.

                (d)     It is expressly agreed that the remedy at law for breach
of any of the obligations set forth in this Section 8.7 is inadequate in view of
(i) the complexities and uncertainties in measuring the actual damages that
would be sustained by reason of the failure of a Partner to comply fully with
each of said obligations, and (ii) the uniqueness of the Partnership business
and Partners' relationship.

                                       22
<PAGE>

Accordingly, each of the aforesaid obligations shall be, and is hereby expressly
made, enforceable by specific performance.

        8.8     AUTHORITY OF GENERAL PARTNER. For purposes of Section 8.6 and
Section 8.7 above, the General Partner and BH Fund shall be treated as one
Partner, and the General Partner shall make all decisions on behalf of the
General Partner and BH Fund regarding the initiation of the buy/sell procedure
or any other decision to be made pursuant to Section 8.6 or Section 8.7. BH Fund
hereby irrevocably constitutes and appoints the General Partner as its
attorney-in-fact with full power to bind BH Fund hereunder and execute documents
of transfer on its behalf.

        8.9     COST AND EXPENSE OF TRANSFER; ALLOCATION OF PROFITS AND LOSSES.
All costs and expenses incurred by the Partnership in connection with any
disposition of a Partner's interest, including any filing, recording and
publishing costs and the fees and disbursements of counsel, shall be paid by the
Partner disposing of such interest. If an interest in the Partnership is
disposed of pursuant to this Article VIII, the selling Partner shall
nevertheless be entitled to a portion of the profits and be charged with a
portion of the losses allocated to such interest or part thereof for the fiscal
year of the Partnership in which such disposition occurs, consistent with
Section 7.7 above.

                                  ARTICLE IX.

                        OWNERSHIP OF PARTNERSHIP PROPERTY

        All real or personal property, including all improvements placed or
located thereon, acquired by the Partnership shall be owned by and in the name
of the Partnership, such ownership being subject to the other terms and
provisions of this Agreement.

                                   ARTICLE X.

                                 FISCAL MATTERS

        10.1    FISCAL YEAR. The fiscal year of the Partnership shall be the
calendar year.

        10.2    RECORDS; FINANCIAL STATEMENTS.

                (a)     Proper books and records shall be kept with reference to
all Partnership transactions at the principal place of business of the
Partnership, and each Partner shall at all reasonable times during business
hours have access thereto. The books shall be kept in such manner of accounting
as shall properly reflect the actions of the Partnership in accordance with
accounting principles generally accepted within the industry and consistently
applied on such basis as will, in the opinion of the Partnership's accountants,
be most advantageous to the Partnership. The books and records shall include the
designation and identification of any property in which the Partnership owns a
beneficial interest. The books and records of the Partnership shall be reviewed
annually at the expense of the Partnership by an independent certified public
accountant selected by the General Partner, who shall prepare and deliver to the
Partnership, for filing, the appropriate federal Partnership income tax
return(s) before March 31 of each year. The General Partner shall provide each
Limited Partner with a copy of the Partnership income tax return at least ten
(10) business days prior to filing such return. The Partnership shall report its
operations for tax purposes on the accrual basis.

                (b)     The General Partner shall, at Partnership expense,
furnish (or request the manager of the Property to furnish) to the Partners (i)
on or before the twentieth (20th) day of each calendar quarter, an unaudited
statement setting forth and describing in reasonable detail the receipts and

                                       23
<PAGE>

expenditures of the Partnership during the preceding calendar quarter and
comparing the results of operations of the Partnership for such calendar quarter
and for the year to date to the appropriate Operating Budget, (ii) on or before
one hundred twenty (120) days after the end of each fiscal year, a balance sheet
of the Partnership dated as of the end of such fiscal year, a statement of the
Partners' Capital Accounts and Capital Contribution Balances, a statement of
Distributable Cash, and a statement setting forth the Profits and Losses for
such fiscal year, audited by an independent firm of certified public accountants
as determined by Approval by Partnership Vote, and (iii) from time to time, all
other information relating to the Partnership and the business and its affairs
reasonably requested by any Partner.

        10.3    ACCOUNTS. All funds of the Partnership shall be deposited in its
name in an account or accounts maintained at a bank designated by the General
Partner or with an agent designated by the General Partner. Checks shall be
drawn upon the Partnership account or accounts only for purposes of the
Partnership and shall be signed by the General Partner.

        10.4    FEDERAL TAX ELECTIONS. All elections for federal tax purposes,
including but not limited to an election to adjust the basis of the assets of
the Partnership pursuant to Section 754 of the Code, and the adoption of
accelerated depreciation or cost recovery methods required or permitted to be
made by the Partnership under the Code shall be determined by Approval by
Partnership Vote.

        10.5    TAX AUDITS. The General Partner shall be designated as the "tax
matters partner" of the Partnership as defined in Sections 6221 ET SEQ, of the
Code and, in the event of an audit of the Partnership by the Internal Revenue
Service ("IRS"), the General Partner, at Partnership expense, shall have the
exclusive right to conduct all negotiations with the Internal Revenue Service on
behalf of the Partnership, and the attorneys and accountants selected by the
Partners to conduct such negotiations are hereby specifically authorized by the
Partners to act on behalf of the Partnership in such negotiations, and each
Partner will execute such further authority as the IRS may require to permit the
General Partner and its selected attorneys and accountants to so represent the
Partners; provided the General Partner shall not take any action take any action
contemplated by Sections 6222 through 6232 of the Code without prior Approval by
Partnership Vote. This provision is not intended to authorize the General
Partner to take any action left to the determination of an individual Partner
under Sections 6222 through 6232 of the Code.

                                  ARTICLE XI.

                                    AMENDMENT

        11.1    AUTHORITY TO AMEND. Except as provided in Section 11.2 below,
this Agreement may only be altered or amended by a written instrument signed by
the General Partner and Limited Partners holding a Majority in Interest of the
Residual Percentages, provided that no amendment may reduce a Partner's economic
interest in the Partnership without the Partner's prior written consent.

        11.2    AMENDMENTS BY GENERAL PARTNER WHICH REQUIRE NO APPROVAL.
Notwithstanding Section 11.1 hereof, the following amendments to this Agreement
may be made by the General Partner, without approval of the Limited Partners:

                (a)     a clarification which does not change the substance
hereof;

                (b)     a change in the name of the Partnership;

                (c)     a change in the name and address of a Partner designated
in Article II pursuant to a request from that Partner;

                                       24
<PAGE>

                (d)     a modification which is necessary or appropriate, in the
opinion of counsel for the Partnership, to satisfy the requirements of the Code
with respect to partnerships or of any federal or state securities laws or
regulations, provided such amendment does not adversely affect the economic
interests of any Limited Partner without that Limited Partner's consent.

                                  ARTICLE XII.

                         DISSOLUTION OF THE PARTNERSHIP

        12.1    DISSOLUTION.

                (a)     It is the intention of the Partners that the Partnership
shall be continued by the Partners, or those remaining, pursuant to the
provisions of this Agreement, notwithstanding the occurrence of any event which
would otherwise result in a dissolution of the Partnership pursuant to the law
of the State of Texas, and no Partner shall be released or relieved of any duty
or obligation hereunder by reason of any such dissolution; provided, however,
that the Partnership shall be terminated, its affairs wound up and its property
and assets distributed on the earlier of:

                        (i)     expiration of the Partnership term as provided
in Section 1.5 hereof;

                        (ii)    the written consent of the General Partner and
the Limited Partners holding a Majority in Interest of the Residual Percentages;

                        (iii)   an Event of Withdrawal of a General Partner (as
defined in Article VIII hereof) unless at the time of the Event of Withdrawal,
there is at least one (1) other General Partner or the provisions of Section
12.1(b) below are satisfied;

                        (iv)    the disposition (including condemnation or
casualty loss) of all or substantially all of the property and assets of the
Partnership and receipt of the proceeds from such sale of other disposition
(except under circumstances where (x) all or a portion of the purchase price is
payable after the closing of the sale or other disposition, or (y) the
Partnership retains a material economic or ownership interest in the entity to
which all or substantially all of its assets are Transferred); or

                        (v)     dissolution by law or appropriate judicial
decree.

                (b)     Upon the occurrence of any Event of Withdrawal of a
General Partner at a time when there is no other General Partner, the
Partnership shall be continued if, within a period of ninety (90) days from the
date of such occurrence, all other Partners agree in writing that the
Partnership shall be continued and designate one or more individuals or legal
entities to be admitted to the Partnership as a General Partner, which agreement
shall be effective as of the date of the occurrence of the applicable Event of
Withdrawal. Any such individual or legal entity shall, upon admission to the
Partnership, succeed to all of the rights and powers of a General Partner
hereunder.

                (c)     Dissolution of the Partnership shall be effective on
December 31, 2053 or the day on which the event occurs giving rise to the
dissolution, but the Partnership shall not terminate until the Certificate shall
have been canceled and the assets of the Partnership shall have been distributed
as provided below. Notwithstanding the dissolution of the Partnership, prior to
the termination of the Partnership as aforesaid, the business of the Partnership
and the affairs of the Partners shall continue to be governed by this Agreement.

                                       25
<PAGE>

                (d)     The bankruptcy, insolvency, dissolution, or adjudication
of incompetency of a Limited Partner shall not cause the dissolution of the
Partnership. In the event of the bankruptcy, or incompetency of a Limited
Partner, its administrators or representatives ("Successor") shall have the same
rights that such Limited Partner would have had if it had not become bankrupt,
except that, in the event of bankruptcy, such Successor shall have no right to
participate in the management of the Partnership or vote on any Partnership
matter unless such Successor is admitted to the Partnership as a Limited Partner
pursuant to Section 8.5, and the interest of such Limited Partner in the
Partnership shall, until the termination of the Partnership, otherwise be
subject to the terms, provisions and conditions of this Agreement as if such
Limited Partner had not become bankrupt. In the event of any other withdrawal of
a Limited Partner, the Limited Partner shall only be entitled to Partnership
distributions distributable to it but not actually paid to it prior to such
withdrawal and shall not have any right to have its interest in the Partnership
purchased or paid for.

                (e)     Notwithstanding anything in this Agreement to the
contrary, upon a sale of all or substantially all of the assets of the
Partnership in a single transaction (a "SINGLE SALE TRANSACTION") where all or
any portion of the consideration payable to the Partnership is to be received by
the Partnership more than ninety (90) days after the date on which such Single
Sale Transaction occurs, the Partnership shall continue for purposes of
collecting the deferred payments and making distributions to the Partners. In
such event (i) gain recognized and cash distributed in any year as a result of
such Single Sale Transaction shall be allocated and distributed among the
Partners in the same proportion as such gain and cash would have been allocated
and distributed were the entire gain resulting from such Single Sale Transaction
required to be recognized for Federal income tax purposes in the year in which
such Single Sale Transaction occurred; and (ii) income attributable to interest
on deferred payments shall be allocated among, and such interest shall be
distributed to, the Partners as if the deferred payment obligations received by
the Partnership had been distributed to the Partners pursuant to Section 6.1.

        12.2    WIND-UP OF AFFAIRS. As expeditiously as possible following the
occurrence of an event giving rise to a termination of the Partnership pursuant
to Section 12.1 above, the General Partner(s) or, if none, all of the Limited
Partners or a liquidator appointed by all of the Limited Partners (the General
Partner, Limited Partners or such liquidator, as the case may be, is referred to
here as the "LIQUIDATOR") shall liquidate the assets of the Partnership, apply
and distribute the proceeds thereof as contemplated by this Agreement and cause
the cancellation of the Certificate. As soon as possible after the dissolution
of the Partnership, a full account of the assets and liabilities of the
Partnership shall be taken, and a statement shall be prepared by the independent
accountants then acting for the Partnership setting forth the assets and
liabilities of the Partnership. A copy of such statement shall be furnished to
each of the Partners within ninety (90) days after such dissolution. Thereafter,
the Liquidator shall wind up the affairs of the Partnership and distribute the
Partnership assets in the following order of priority:

                (a)     to creditors (including Partners who are creditors) in
satisfaction of the liabilities of the Partnership, other than liabilities to
existing and former Partners for distributions from the Partnership;

                (b)     to the establishment of any reserves which the
Liquidator deems reasonably necessary for any contingencies or unforeseen
liabilities or obligations of the Partnership. Such reserves shall be paid over
by the Liquidator to an escrow agent or shall be held by the Liquidator for the
purpose of disbursing such reserves in payment of any of such contingencies. At
the expiration of such period as the Liquidator deems advisable, the balance
thereof shall be distributed in the manner and order provided in this Section;

                (c)     to existing and former Partners in satisfaction of any
liabilities to them, if any, for distributions from the Partnership;

                                       26
<PAGE>

                (d)     to Partners in accordance with Section 6.1 above.

        Notwithstanding anything to the contrary, in the event the Partnership
is "liquidated" within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g)
and an event described in Section 12.1(a) shall have occurred, liquidating
distributions shall be made pursuant to this Section 12.2 by the end of the
taxable year in which the Partnership is liquidated, or, if later, within ninety
(90) days after the date of such liquidation. Distributions pursuant to the
preceding sentence may be made to a trust for the purpose of an orderly
liquidation of the Partnership by the trust in accordance with the Act.

        12.3    COMPLIANCE WITH TREASURY REGULATIONS. It is the intent of the
Partners that the allocations provided in Section 7.1 result in distributions
required pursuant to Section 12.2(d) being in accordance with positive Capital
Accounts as provided for in the Treasury Regulations under Code Section 704(b).
However, if after giving hypothetical effect to the allocations required by
Section 7.1, the Capital Accounts of the Partners are in such ratios or balances
that distributions pursuant to Section 12.2(d) would not be in accordance with
the positive Capital Accounts of the Partners as required by the Treasury
Regulations under Code Section 704(b), such failure shall not affect or alter
the distributions required by Section 12.2(d). Rather, the liquidator will have
the authority to make other allocations of Profits and Losses (or items thereof)
among the Partners which, to the extent possible, will result in the Capital
Accounts of each Partners having a balance prior to distribution equal to the
amount of distributions to be received by such Partners pursuant to Section
12.2(d).

        12.4    NO DEFICIT CAPITAL ACCOUNT OBLIGATION. Notwithstanding anything
else to the contrary in this Agreement, upon a liquidation within the meaning of
Section 1.704-1(b)(2)(ii)(g) of the Regulations, if any Partner has a deficit
Capital Account (after giving effect to all contributions, distributions,
allocations and other Capital Account adjustments for all taxable years,
including the year during which such liquidation occurs), such Partner shall
have no obligation to make any Capital Contribution, and the negative balance of
such Partner's Capital Account shall not be considered a debt owed by such
Partner to the Partnership or to any other Person for any purpose whatsoever.

        12.5    DISTRIBUTION IN KIND. If any assets of the Partnership are to be
distributed in kind, the net fair market value of such assets as of the date of
dissolution shall be determined by independent appraisal or by agreement of the
Partners. Prior to distribution, such assets shall be deemed to have been sold
for their fair market values and the Capital Accounts of the Partners shall be
adjusted pursuant to the terms of this Agreement to reflect the allocation of
gain or loss which would have resulted from such deemed sale.

        12.6    CANCELLATION OF CERTIFICATE. Upon the dissolution and the final
liquidation of the Partnership, there shall be filed for record as provided by
Texas law a Certificate of Cancellation executed by the General Partner.

        12.7    RETURN OF CONTRIBUTION NONRECOURSE TO OTHER PARTNERS. Except as
provided by law or as expressly provided in this Agreement, upon dissolution
each Partner shall look solely to the assets of the Partnership for the return
of its Capital Contribution. If the Partnership property remaining after the
payment or discharge of the debts and liabilities of the Partnership is
insufficient to return the cash contribution of one or more Partners, such
Partner or Partners shall have no recourse against any other Partner.

                                       27
<PAGE>

                                 ARTICLE XIII.

                            MISCELLANEOUS PROVISIONS

        13.1    NOTICES. Except as may be otherwise specifically provided in
this Agreement, all notices required or permitted hereunder shall be in writing
and shall be deemed to be delivered on the earlier of (i) when delivered in
person, or (ii) when delivered by commercial courier such as Federal Express,
Express Mail or other overnight delivery service where delivery is evidenced by
written receipt, addressed to the appropriate party at the addresses set forth
in Article II, or such other address of the party as may have been changed as
provided herein. Any party may change the address to which notices will be given
by giving notice of such change to the other parties, in accordance with the
provisions of this Section 14.1.

        13.2    GOVERNING LAW. This Agreement shall be construed under and in
accordance with the laws of the State of Texas, excluding any conflicts of law
rule or principle which might refer such construction to the laws of another
state or country.

        13.3    EXECUTION OF OTHER AGREEMENTS. The parties hereto covenant and
agree that they will execute such other further instruments and documents as are
or may become necessary or convenient to effectuate and carry out the
Partnership created by this Agreement.

        13.4    NO ACTION FOR PARTITION. No Partner shall be entitled to bring
an action for partition against the Partnership, and each Partner hereby
irrevocably waives, during the term of the Partnership and during the period of
its liquidation following any dissolution, any right to maintain an action for
partition with respect to any of the assets of the Partnership.

        13.5    PARAGRAPH HEADINGS. The headings used in this Agreement are used
for administrative purposes only and do not constitute substantive matter to be
considered in construing the terms of this Agreement.

        13.6    BINDING EFFECT AND BENEFIT. This Agreement is binding on, and
shall inure to the benefit of, all of the parties hereto and to their respective
heirs, executors, administrators, legal representatives, and successors and
assigns where permitted by this Agreement.

        13.7    SEVERABILITY. In case any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

        13.8    COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which together shall constitute a single contract, and each
of such counterparts shall for all purposes be deemed to be an original. This
Agreement may be executed and delivered by fax (telecopier); any original
signatures that are initially delivered by fax shall be physically delivered
with reasonable promptness thereafter. 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.

        13.9    GENDER. Wherever the context so requires, all words herein in
the neuter gender shall be deemed to include the feminine or masculine genders,
and vice versa, all singular words shall include the plural, and all plural
words shall include the singular.

                                       28
<PAGE>

        13.10   ENTIRE AGREEMENT. This Agreement, together with all Exhibits
hereto and all other documents referred to herein, constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof,
and supersedes all prior and contemporaneous agreements, understanding,
inducements or conditions, express or implied, oral or written.

        13.11   VALIDITY. In the event that all or any portion of any provision
of this Agreement shall be held to be invalid, the same shall not affect in any
respect whatsoever the validity of the remainder of this Agreement.

        13.12   INDULGENCES, ETC. Neither the failure nor any delay on the part
of any party hereto 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 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 signed by the party asserted to have granted such waiver.

        13.13   REMEDIES. In the event of any breach of this Agreement by any
Partner or default by any Partner in connection with performing any obligation
of such Partner under this Agreement, the Partnership's and the non-defaulting
Partner's rights and remedies contained herein or in any other agreement shall
be cumulative and shall not be exclusive of any other rights or remedies which
the Partnership or the non-defaulting Partner may have at law or in equity.

        13.14   INTERPRETATION. No provision of this Agreement is to be
interpreted for or against either party because that party or that party's legal
representative drafted such provision.

        13.15   TIME OF ESSENCE. TIME IS OF THE ESSENCE in connection with this
Agreement.

        13.16   ALTERNATIVE DISPUTE RESOLUTION. If a dispute, controversy or
claim (whether based upon contract, tort, statute, common law or otherwise)
(collectively a "DISPUTE") arises from or relates directly or indirectly to the
subject matter hereof, and if the Dispute cannot be settled through direct
discussions, the parties hereto shall first endeavor to resolve the Dispute by
participating in at least eight (8) hours of mediation administered by the
American Arbitration Association under its Commercial Mediation Rules before
filing a lawsuit to determine the resolution of such Dispute.

        13.17   NOTICE OF INDEMNIFICATION. THE PARTIES TO THIS AGREEMENT HEREBY
ACKNOWLEDGE AND AGREE THAT THIS AGREEMENT CONTAINS CERTAIN INDEMNIFICATION
PROVISIONS PURSUANT TO SECTION 5.2.

                                  ARTICLE XIV.

                          SECURITIES LAW CONSIDERATIONS

        14.1    NO REGISTRATION/RESTRICTION ON SALE. THE PARTNERSHIP INTERESTS
HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT OF 1933, NOR HAVE THEY BEEN REGISTERED WITH
THE SECURITIES COMMISSION OF ANY OTHER APPLICABLE STATE, INCLUDING WITHOUT
LIMITATION THE STATE OF TEXAS. THE PARTNERSHIP INTERESTS MAY BE ACQUIRED FOR
INVESTMENT PURPOSES ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
SOLD OR TRANSFERRED EXCEPT IN COMPLIANCE WITH THE

                                       29
<PAGE>

TERMS AND CONDITIONS OF THIS AGREEMENT AND IN A TRANSACTION WHICH IS EITHER
EXEMPT FROM REGISTRATION UNDER SUCH ACTS OR PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACTS.

        14.2    COMPLIANCE WITH SECURITIES LAWS. The Limited Partners
acknowledge and confirm that their Limited Partnership interests have not been
registered under any federal or state securities laws by virtue of exemptions
from the registration provisions thereof and consequently cannot be sold except
pursuant to appropriate registration or exemption from registration as
applicable. No Transfer of all or any part of a Limited Partnership interest
(except a Transfer upon the death, incapacity or bankruptcy of a Limited Partner
to his personal representative and beneficiaries), including, without
limitation, any Transfer of a right to distributions, profits and/or losses to a
person who does not become a Partner, may be made unless the Partnership is
provided with an opinion of counsel acceptable to the General Partner (both as
to the identity of the counsel and the substance of the opinion) to the effect
that such offer or assignment (a) may be effected without registration under the
Securities Act of 1933, as amended, or the Investment Company Act of 1940, as
amended, and (b) does not violate any applicable federal or state securities
laws (including any investment suitability standards) applicable to the
Partnership or the General Partner.

        14.3    ACCESS TO INFORMATION. Each of the Limited Partners represents
to the General Partner and the Partnership that before determining to enter into
this Agreement and to invest in the Partnership, each Limited Partner made an
independent investigation into the Partnership and the General Partner and that
it received whatever information it deemed necessary or relevant in order to
decide whether to enter into this Agreement or invest in the Partnership. Each
Limited Partner acknowledges that the financial materials provided to the
Limited Partners are only estimates of expected future operations based on
assumptions about future markets and there is no assurance that such projections
will be realized.

        14.4    AMENDMENTS TO AGREEMENT. Notwithstanding anything contained
herein to the contrary, in the event that legal counsel for BH Fund reasonably
determines that an amendment to this Agreement is necessary or advisable in
order for this Agreement to comply with the limited partnership agreement of BH
Fund, applicable securities laws, or NASAA Guidelines, then each Partner shall,
within ten (10) days after request from BH Fund, execute such an amendment;
provided, however, that no such amendment may reduce a Partner's economic
interest in the Partnership without the Partner's prior written consent.

                            [SIGNATURE PAGES FOLLOW]

                                       30
<PAGE>

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

                                         GENERAL PARTNER:

                                         BEHRINGER HARVARD 1221 COIT GP, LLC,
                                         a Texas limited liability company

                                         By:____________________________________
                                         Name:__________________________________
                                         Its:___________________________________

                      [This space intentionally left blank]

                                       31
<PAGE>

                                         LIMITED PARTNERS:

                                         BEHRINGER HARVARD SHORT-TERM
                                               OPPORTUNITY FUND I, LP, a Texas
                                               limited partnership

                                         By:   Behringer Harvard Advisors II LP,
                                               a Texas limited partnership, its
                                               General Partner

                                               By:  Harvard Property Trust, LLC
                                                    Its General Partner

                                                    By:_________________________
                                                    Name:_______________________
                                                    Title:______________________

                      [This space intentionally left blank]

                                       32
<PAGE>

                                         REALTY AMERICA GROUP (1221 COIT ROAD),
                                         LP, a Texas limited partnership

                                         By:  Realty America Group Investments,
                                              LLC, a Texas limited liability
                                              company
                                              Its General Partner

                                              By:_______________________________
                                              Name:  Webb M. Sowden, III
                                              Title: Member

                      [This space intentionally left blank]

                                       33
<PAGE>

                                    Exhibit A
                                    ---------

                          Legal Description of Property

TRACT I:

Being all of that certain tract of land situated in the Martha McBride Survey,
Abstract No. 553, Collin County, Texas, as described in deed to Premier
Wholesale Club, Inc., and recorded in Volume 2267, Page 438, Deed Records,
Collin County, Texas, also being all of Lot 1, Block 1, AMWC/Coit Road Warehouse
Addition, an addition to the City of Plano, as recorded in Cabinet F, Page 621,
Plat Records, Collin County, Texas, and as shown by replat recorded in Cabinet
G, Page 97, said Plat Records, and being more particularly described by metes
and bounds as follows:

BEGINNING at the Southwest corner of the remainder of that certain tract of land
as described in deed to J.D. Sims and Co. and recorded in Volume 1958, Page 462,
of said Deed Records also being on the north line of that certain tract of land
as described in deed to Westwind Properties, Inc. and recorded in Volume 1803,
Page 534, of said Deed Records;

THENCE North 89 degrees 26 minutes 36 seconds West, 554.28 feet along said
northerly line to a one inch iron rod, found, being the northwesterly corner of
said Westwind tract, also being on the easterly right-of-way line of Commerce
Street (a 60 foot wide public right-of-way);

THENCE North 00 degrees 54 minutes 00 seconds East, 477.28 feet along said
easterly right-of-way line to a one inch iron rod found, being the southwesterly
corner of the remainder of that certain tract of land as described in deed to
Charles Gartner and recorded in Volume 1007, Page 184, of said Deed Records;

THENCE South 89 degrees 06 minutes 00 seconds East, 800.00 feet along the
southerly line of said Gartner tract to an "X" cut set in concrete being the
southeasterly corner of said Gartner tract, also being on the westerly
right-of-way line of Coit Road (a 130' right-of-way);

THENCE South 00 degrees 23 minutes 00 seconds West, 212.48 feet along said
westerly right-of-way line to an "X" cut found, being the northeasterly corner
of the aforementioned Sims tract;

THENCE North 89 degrees 06 minutes 00 seconds West, 247.65 feet along the
northerly line of said Sims tract to a one inch iron rod, found, being the
northwesterly corner of said Sims tract;

THENCE South 00 degrees 54 minutes 00 seconds West, 261.49 feet along the
westerly line of said Sims tract to the POINT OF BEGINNING and containing
316,036 square feet or 7.255 acres of land, more or less.

TRACT II:

Nonexclusive EASEMENT for ingress and egress as created in Easement Agreement,
dated December 3, 1985, filed December 6, 1985, recorded in Volume 2267, Page
458, Deed Records Collin County, Texas.

                                       34
<PAGE>

TRACT III:

Nonexclusive EASEMENT for ingress and egress as created in Easement Agreement,
dated December 14, 1985, filed December 17, 1985, recorded in Volume 2273, Page
783, Deed Records, Collin County, Texas.

TRACT IV:

BEING a tract of land situated in the MARTHA MCBRIDE SURVEY, ABSTRACT NO. 553,
City of Plano, COLLIN County, Texas, and being that same tract of land conveyed
under County Clerk No. 95-0036593, Land Records of COLLIN County, Texas, and
being Lot 3, Block A of the Conveyance Plat of COLLIN EQUITIES ADDITION, an
Addition to the City of Plano, Texas, as recorded in Cabinet K. Page 361, Plat
Records of COLLIN County, Texas, and being more particularly described as
follows:

BEGINNING at a 1/2 inch iron rod set for the Southeast corner of West Plano
Medical Center as recorded in Cabinet E, Page 103, and also being in the West
line of Commerce Drive (a 60 foot right of way) and also being the most Easterly
Northeast Corner of Collin Equities Addition, Block A, Lot 2;

THENCE South 00 degrees 54 minutes 00 seconds West, along the West line of
Commerce Drive, a distance of 510.00 feet to a 1/2 inch iron set for a corner,
said point also being the Northeast corner of Bellinger Business Park as
recorded in Cabinet F, Page 92, Plat Records of COLLIN County, Texas;

THENCE North 89 degrees 06 minutes 00 seconds West, along the North line of said
Bellinger Business Park, a distance of 430.00 feet to a 1 inch iron rod found
for corner;

THENCE North 00 degrees 53 minutes 20 seconds East, a distance of 510.00 feet to
a 1 inch iron rod found for corner, said point also being in the South line of
the aforementioned West Plano Medical Center, an Addition to the City of Plano;

THENCE South 89 degrees 06 minutes 00 seconds East, a distance of 430.10 feet to
the POINT OF BEGINNING AND CONTAINING 5.035 acres of land, more or less.

                                       35
<PAGE>

                                    Exhibit B
                                    ---------

         Amended and Restated Property Management and Leasing Agreement

                                 [See Attached]

                                       36
<PAGE>

                                    Exhibit C
                                    ---------

                          Initial Capital Contributions

         Name of Partner                            Initial Capital Contribution
         ---------------                            ----------------------------
Behringer Harvard 1221 Coit GP, LLC                         $      100

Behringer Harvard Short-Term Opportunity                    $4,499,900
     Fund I LP

Realty America Group (1221 Coit Road), L.P.                 $  500,000

                                       37<PAGE>

                            [LOGO] WASHINGTON MUTUAL
                            ------------------------
                             COMMERICAL REAL ESTATE

                                                             Loan No. 62-5026661

                                 LOAN AGREEMENT

        THIS LOAN AGREEMENT is made as of October 4, 2004 (the "EFFECTIVE
Date"), by and between WASHINGTON MUTUAL BANK, FA, with an address at c/o
National Commercial Operations Center, 555 Dividend Drive, Suite 150, Mailstop
3545PMTX, Coppell, TX 75019, Attn: Portfolio Administration ("LENDER") and
BEHRINGER HARVARD 1221 COIT LP, a Texas limited partnership, with an address at
15601 Dallas Parkway, Suite 600, Addison, Texas 75001, Attn: Gerald J. Reihsen,
III ("BORROWER").

                                    RECITALS:

A.      Borrower desires to obtain a loan (the "LOAN") from Lender in the
original principal amount of approximately SIX MILLION AND NO/100 DOLLARS (U.S.
$6,000,000.00); and

B.      Lender is willing to make the Loan on the condition that Borrower, among
other things, joins in the execution and delivery of this Agreement.

        NOW, THEREFORE, in consideration of the making of the Loan by Lender,
and the covenants, agreements, representations and warranties set forth in this
Agreement, the parties hereby covenant, agree, represent and warrant as follows:

                             ARTICLE I. DEFINITIONS

1.1     DEFINITIONS. The addendum captioned "Definitions Addendum" is hereby
incorporated by reference as if fully set forth herein. Defined terms may be
used in this Agreement and in the other Loan Documents interchangeably in
singular or plural form, as the context may require.

                           ARTICLE II. GENERAL TERMS

2.1     THE LOAN. Subject to, and upon the terms and conditions set forth
herein, Lender hereby agrees to make the Loan to Borrower on the Disbursement
Date, which Loan will mature on the Maturity Date, subject to Borrower's option
to extend the term of the Loan on the terms and conditions set forth in SECTIONS
2.4 AND 2.5.

2.2     DISBURSEMENT TO BORROWER. Borrower may request and receive only one
borrowing in respect of the Loan, which will not be subject to future advances
and any amount borrowed and repaid in respect of the Loan may not be reborrowed.

2.3     THE NOTE AND OTHER LOAN DOCUMENTS. The Loan shall be evidenced by the
Note and evidenced or secured by the other Loan Documents executed and delivered
in connection with the Loan. The Note shall bear interest as provided in the
Note, and shall be subject to the payment of interest and the repayment and
prepayment of the Indebtedness as provided for therein and herein. The Note
shall be entitled to the benefits of this Agreement and shall be secured by the
Mortgage and the other Loan Documents given to further secure the Loan.

                                       1
<PAGE>

2.4     FIRST OPTION TO EXTEND.

        (a)     Borrower shall have the option to extend the term of the Loan
(the "FIRST OPTION TO EXTEND") from the Maturity Date (for purposes of this
Section, "ORIGINAL MATURITY DATE") to the First Extended Maturity Date upon
satisfaction of each of the following conditions precedent:

        (i)     Borrower shall provide Lender with written notice of Borrower's
                request to exercise the First Option to Extend not more than
                ninety (90) days but not less than thirty (30) days prior to the
                Original Maturity Date;

        (ii)    As of the date of Borrower's delivery of notice of request to
                exercise the First Option to Extend and as of the Original
                Maturity Date, no Event of Default shall have occurred and be
                continuing and no event or condition which, with the giving of
                notice or the passage of time or both, would constitute an Event
                of Default shall have occurred and be continuing, and Borrower
                shall so certify in writing;

        (iii)   At least one hundred thousand twenty-four (100,024) square feet
                of net rentable area within the Premises shall be leased to, and
                occupied by, Qualified Tenants pursuant to Qualified Leases;

        (iv)    The Premises shall have achieved and maintained a Debt Service
                Coverage Ratio of at least 1.20 to 1 for the ninety (90)
                consecutive day period ending on September 30, 2007;

        (v)     Borrower shall have executed or caused the execution of all
                documents reasonably required by Lender to exercise the First
                Option to Extend and shall have delivered to Lender, at
                Borrower's sole cost and expense, such title insurance
                endorsements reasonably required by Lender;

        (vi)    There shall have occurred no material adverse change, as
                determined by Lender in its sole and absolute discretion, in the
                financial condition of Borrower or Guarantor (or any other
                person or entity in any manner obligated to Lender under the
                Loan Documents) from that which existed on the Effective Date;
                and

        (vii)   On or before the Original Maturity Date, Borrower shall have
                paid to Lender an extension fee in an amount equal to
                one-quarter of one percent (0.25%) of the then-outstanding
                principal balance of the Loan as of the Original Maturity Date.

        (b)     Except as modified by the First Option to Extend, the terms and
conditions of this Agreement and the other Loan Documents as modified and
approved by Lender shall remain unmodified and in full force and effect.

2.5     SECOND OPTION TO EXTEND.

        (a)     If Borrower shall have exercised the First Option to Extend and
the Original Maturity Date of the Note shall have been extended in accordance
with the terms and provisions of this Agreement, Borrower shall have the option
to further extend the term of the Loan (the "SECOND OPTION TO EXTEND") from the
First Extended Maturity Date to the Second Extended Maturity Date upon
satisfaction of each of the following conditions precedent:

        (i)     Borrower shall provide Lender with written notice of Borrower's
                request to exercise the Second Option to Extend not more than
                ninety (90) days but not less than thirty (30) days prior to the
                First Extended Maturity Date;

        (ii)    As of the date of Borrower's delivery of notice of request to
                exercise the Second Option to Extend and as of the First
                Extended Maturity Date, no Event of Default shall have occurred
                and be continuing and no event or condition which, with the
                giving of notice or the passage of time or both, would
                constitute an Event of Default shall have occurred and be
                continuing, and Borrower shall so certify in writing;

                                       2
<PAGE>

        (iii)   At least one hundred thousand twenty-four (100,024) square feet
                of net rentable area within the Premises shall be leased to, and
                occupied by, Qualified Tenants pursuant to Qualified Leases;

        (iv)    The Premises shall have achieved and maintained a Debt Service
                Coverage Ratio of at least 1.20 to 1 for the ninety (90)
                consecutive day period ending on September 30, 2008;

        (v)     At Lender's request, in its sole and absolute discretion, Lender
                shall have received a Premises Appraisal (dated not more than
                thirty (30) days prior to the First Extended Maturity Date)
                confirming to the satisfaction of Lender, in its sole and
                absolute discretion, that the then-outstanding principal balance
                of the Loan as a percentage of the As-Is Appraised Value does
                not exceed fifty-five percent (55%);

        (vi)    Borrower shall have executed or caused the execution of all
                documents reasonably required by Lender to exercise the Second
                Option to Extend and shall have delivered to Lender, at
                Borrower's sole cost and expense, such title insurance
                endorsements reasonably required by Lender;

        (vii)   There shall have occurred no material adverse change, as
                determined by Lender in its sole and absolute discretion, in the
                financial condition of Borrower or Guarantor (or any other
                person or entity in any manner obligated to Lender under the
                Loan Documents) from that which existed on the Effective Date;
                and

        (viii)  On or before the First Extended Maturity Date, Borrower shall
                have paid to Lender an extension fee in an amount equal to
                one-quarter of one quarter (0.25%) of the then-outstanding
                principal balance of the Loan as of the First Extended Maturity
                Date.

        (b)     Except as modified by the Second Option to Extend, the terms and
conditions of this Agreement and the other Loan Documents as modified and
approved by Lender shall remain unmodified and in full force and effect.

2.6     CONDITIONS PRECEDENT TO DISBURSEMENT OF LOAN PROCEEDS. Lender's
obligation to make the Loan and disburse proceeds thereof shall be subject at
all times to satisfaction of each of the following conditions precedent:

        (a)     There shall exist no Event of Default, as defined in this
Agreement, or Event of Default as defined in any of the other Loan Documents, or
event, omission or failure of condition which would constitute an Event of
Default after notice or lapse of time, or both; and

        (b)     Lender shall have received all Loan Documents, other documents,
instruments, policies and forms of evidence or other materials requested by
Lender under the terms of this Agreement or any of the other Loan Documents; and

        (c)     Lender shall have received a Premises Appraisal (dated no more
than thirty (30) days prior to the Disbursement Date) confirming to the
satisfaction of Lender, in its sole and absolute discretion, that: (i) the
Commitment Amount as a percentage of the As-Is Appraised Value does not exceed
fifty-five percent (55%); and (ii) the Commitment Amount as a percentage of the
Cost of the Premises does not exceed fifty-five percent (55%); and

        (d)     No event shall have occurred, nor shall any condition exist,
that could have an adverse effect on the enforceability of the Loan Documents,
be materially adverse to the financial condition of Borrower or Guarantor,
impair the ability of Borrower or Guarantor to fulfill its material obligations
under the Loan Documents or otherwise have any adverse effect whatsoever on the
Premises; and

        (e)     The Improvements shall not have been damaged and not repaired
or, if the Improvements have been damaged and not repaired, Borrower shall have
deposited with Lender, Borrower's funds or insurance proceeds

                                       3
<PAGE>

in an amount sufficient, in Lender's sole and absolute determination, to repair
and restore the damaged Improvements to their condition prior to such damage;
and

        (f)     The Premises shall not be the subject of any pending or
threatened condemnation or adverse zoning proceeding; and

        (g)     Lender shall have received and approved in form and substance
satisfactory to Lender, in its sole and absolute discretion: (i) a soils report
for the Premises; (ii) the Survey; (iii) an environmental questionnaire and
environmental site assessment with respect to the presence, if any, of Hazardous
Materials on the Premises; (iv) copies of all agreements, permits and licenses
which are material to the ownership, use and operation of the Improvements to
the extent in Borrower's possession or control; (v) a Premises inspection and
engineering report; and (vi) copies of any initial study, negative declaration,
mitigated negative declaration, environmental impact report, notice of
determination or notice of exemption prepared, adopted, certified or filed by or
with any governmental agency in connection with the Premises and Improvements;
and

        (h)     That certain Lease Agreement dated January 15, 1998, by and
between Borrower (as assignee of 98 CUSA Plano, L.P., as assignee of Trademark
Emerson Property Company, LLC, a Texas limited liability company) and Telvista
(as assignee of CompUSA Stores, L.P., as assignee of CompUSA Inc.) (the
"COMPUSA/TELVISTA LEASE") shall be in full force and effect, the form and
substance thereof shall have been approved in writing by Lender and Borrower
shall own and hold the same and be the Landlord thereunder; and

        (i)     Each lease of space in the Premises shall be a Qualified Lease
and Lender shall have received for each Qualified Lease (including, without
limitation, the CompUSA/Telvista Lease): (i) a subordination, non-disturbance
and attornment agreement in Lender's standard form, executed by the Qualified
Tenant, Lender and Borrower, subordinating such Qualified Lease to the lien,
security interests, rights and interests of Lender under the Loan Documents; and
(ii) an estoppel certificate in Lender's standard form, pursuant to which the
Qualified Tenant certifies that the Qualified Lease is in full force and effect,
no defaults exist on the part of the Qualified Tenant, as tenant thereunder, or
Borrower, as landlord thereunder, and such other matters included in such form
and as Lender shall otherwise require; and

        (j)     Borrower shall have paid to Lender a commitment fee in an amount
equal to one-half of one percent (0.50%) of the Commitment Amount.

2.7     MANDATORY PRINCIPAL PAYMENTS. Commencing on the first (1st) day of the
month after the Effective Date and continuing on the first (1st) day of each
month thereafter until the Loan is paid and satisfied in full, Borrower shall,
in addition to the interest payments due and payable under the Note, make
mandatory principal payments (each, a "MANDATORY PRINCIPAL PAYMENT") to Lender
in an amount equal to FORTY ONE THOUSAND THREE HUNDRED SIXTY AND NO/100 DOLLARS
($41,360.00). Contemporaneously with the payment of each Mandatory Principal
Payment, Borrower shall notify Lender, in writing, the Fixed Rate Portion or
Fixed Rate Portions against which such Mandatory Principal Payment is to be
applied. In the event Borrower fails to so notify Lender at the time of such
payment, Lender shall elect, in its sole and absolute discretion, the Fixed Rate
Portion or Fixed Rate Portions against which such Mandatory Principal Payment
will be applied.

             ARTICLE III. REPRESENTATIONS, WARRANTIES AND COVENANTS

        Borrower represents and warrants to Lender that, to Borrower's current
actual knowledge after reasonable investigation and inquiry, the following
statements are true and correct as of the Effective Date and continuing
thereafter, and covenants as follows:

3.1     REPRESENTATIONS AND WARRANTIES RELATING TO BORROWER.

        (a)     ORGANIZATION. If Borrower is an Entity, Borrower is and, until
the Indebtedness is paid in full, will continue to: (a) be a duly organized and
validly existing Entity in good standing under the laws of the state of its
formation, (b) be duly qualified as a foreign Entity in each jurisdiction in
which the nature of its business, the Premises or any of the other Collateral
makes such qualification necessary or desirable, (c) have the requisite Entity

                                       4
<PAGE>

power and authority to carry on its business as now being conducted, (d) have
the requisite Entity power to execute, deliver and perform its obligations under
the Loan Documents, and (e) comply with the provisions of all of its
organizational documents and the Legal Requirements of the state of its
formation.

        (b)     AUTHORIZATION; NO CONFLICTS. The execution, delivery and
performance of the Loan Documents and the borrowing evidenced by the Note: (i)
are within the applicable powers of Borrower and each other party to the Loan
Documents (other than Lender); (ii) have been authorized by all requisite
action; (iii) have received all necessary approvals and consents, corporate,
governmental or otherwise; (iv) will not violate, conflict with, result in a
breach of or constitute (with notice or lapse of time or both) a default under
any provision of law, any order or judgment of any court or Governmental
Authority, the articles of incorporation, by-laws, partnership, operating or
trust agreement, or other governing instrument of Borrower or any other party to
the Loan Documents (other than Lender), or any indenture, agreement or other
instrument to which Borrower or any other party to the Loan Documents (other
than Lender) is a party or by which any such party or any of their respective
assets or the Premises is or may be bound or affected; (v) will not result in
the creation or imposition of any lien, charge or encumbrance whatsoever upon
any of such party's assets, except the liens and security interests created by
the Loan Documents; and (vi) will not require any authorization or license from,
or any filing with, any Governmental Authority or other body (except for the
recordation of the Mortgage and any other Loan Document intended to be recorded
in the appropriate land records in the State and except for UCC filings relating
to the security interest created hereby).

        (c)     ENFORCEABILITY. The Loan Documents constitute the legal, valid
and binding obligations of Borrower, Guarantor and the other parties to the Loan
Documents (other than Lender), enforceable against each such party in accordance
with their respective terms.

        (d)     FINANCIAL CONDITION. The financial statements of Borrower, of
each general partner (if Borrower is a partnership), of each member (if Borrower
is a limited liability company) and of each Guarantor, if any, previously
delivered to Lender: (i) are complete and correct; and (ii) present fairly the
financial condition of such party. Since the date of such financial statements,
there has been no material adverse change in such financial condition, nor have
any assets or properties reflected on such financial statements been sold,
transferred, assigned, mortgaged, pledged or encumbered except as previously
disclosed in writing by Borrower to Lender and approved in writing by Lender.

        (e)     LITIGATION. There are no actions, suits or proceedings at law or
in equity by or before any Governmental Authority now pending and served or
threatened against Borrower or the Premises, other than those previously
disclosed in writing by Borrower to Lender.

        (f)     NOT FOREIGN PERSON. Borrower is not a "foreign person" within
the meaning of ss.1445(f)(3) of the Code.

        (g)     AGREEMENTS. Borrower is not a party to any agreement or
instrument or subject to any restriction which is likely to have a Material
Adverse Effect. Borrower is not in default in any respect in the performance,
observance or fulfillment of any of the material obligations, covenants or
conditions contained in any indenture, agreement or instrument to which it is a
party or by which Borrower or the Premises is bound.

        (h)     ORGANIZATIONAL DOCUMENTS; STATE OF FORMATION; AND BORROWER'S
TRADE NAMES. Borrower's chief executive office (or principal residence, if
applicable) is located at the address shown on page one of this Loan Agreement.
Borrower is an organization organized solely under the laws of the State of
Texas. All organizational documents of Borrower delivered to Lender are complete
and accurate in every respect. Borrower's legal name is exactly as shown on page
one of this Loan Agreement and the Mortgage. Borrower does not conduct its
business "also known as," "doing business as" or under any other name.

        (i)     NO DEFAULTS. No default or Event of Default exists under or with
respect to any Loan Document.

        (j)     REPORTS. All reports, documents, instruments and information
delivered to Lender in connection with the Loan: (i) are correct and
sufficiently complete to give Lender accurate knowledge of their subject matter;

                                       5
<PAGE>

and (ii) do not contain any misrepresentation of a material fact or omission of
a material fact which omission makes the provided information misleading.

        (k)     INCOME TAXES. There are no pending assessments or adjustments of
Borrower's income tax payable with respect to any year.

        (l)     SOLVENCY. None of the transactions contemplated by the Loan will
be or have been made with an actual intent to hinder, delay or defraud any
present or future creditors of Borrower, and Borrower, on the Disbursement Date,
will have received fair and reasonably equivalent value in good faith for the
grant of the liens or security interests effected by the Loan Documents. On the
Disbursement Date, Borrower will be solvent and will not be rendered insolvent
by the transactions contemplated by the Loan Documents. Borrower is able to pay
its debts as they become due.

3.2     REPRESENTATIONS, WARRANTIES AND COVENANTS RELATING TO THE PREMISES.

        (a)     TITLE ISSUES.

        (i)     TITLE. Borrower owns good, indefeasible, marketable and
                insurable fee simple title to the Premises and the Collateral,
                free and clear of all liens, other than the Permitted
                Encumbrances applicable to the Premises, and until the
                Indebtedness is paid in full Borrower shall not permit any liens
                (other than the Permitted Encumbrances or any lien that is
                contested by Borrower in accordance with and subject to the
                Mortgage) to attach to the Premises or the Collateral. Borrower
                has good title to the Premises and the Collateral and has the
                right to mortgage, grant, bargain, sell, pledge, assign,
                warrant, transfer and convey the same. There are not now, and
                until the Indebtedness is paid in full, there will not be any
                outstanding options or agreements to purchase or rights of first
                refusal affecting the Premises. None of the Permitted Exceptions
                will, individually or in the aggregate, materially and adversely
                affect the security intended to be provided by the Mortgage, the
                ability of the Premises to generate net operating income
                sufficient to permit Borrower to pay in full the Loan, the use
                of the Premises for the use currently being made thereof, the
                operation of the Premises or the value or marketability of the
                Premises. The Collateral constitutes all of the material
                personal property required for the use and operation of the
                Premises.

        (ii)    TAKING. No Taking has been commenced or is contemplated with
                respect to all or any portion of the Premises or for the
                relocation of roadways providing access to the Premises.

        (iii)   MECHANICS' LIENS. There are no mechanics' or similar liens or
                claims which have been filed for work, labor or material (and no
                rights are outstanding that under law could give rise to any
                such liens) affecting the Premises which are or may be prior to
                or equal to the lien of the Mortgage. All costs and expenses of
                any and all labor, materials, supplies and equipment used in the
                construction of the Improvements have been paid in full.

        (iv)    OWNERSHIP OF FF&E. Borrower has paid in full for, and is the
                owner of, all furnishings, fixtures and equipment (other than
                tenants' property) used in connection with the operation of the
                Premises, free and clear of any and all security interests,
                liens or encumbrances, except the lien and security interest
                created by the Loan Documents securing the Loan.

        (v)     SEPARATE TAX PARCEL. The Premises are and, until the
                Indebtedness is paid in full, will be assessed for real estate
                tax purposes as one or more wholly independent tax lots,
                separate from any adjoining land or improvements not
                constituting a part of such lot or lots, and no other land or
                improvements is and, until the Indebtedness is paid in full,
                will be assessed and taxed together with the Premises or any
                portion thereof.

        (vi)    LEASES. The copy of the CompUSA/Telvista Lease provided to
                Lender prior to the Effective Date is true, correct and complete
                and there are no other leases, purchase agreements, options or
                similar other agreements relating to the use, occupancy or
                ownership of the Premises.

                                       6
<PAGE>

        (vii)   TAXES; SPECIAL ASSESSMENTS. All taxes, governmental assessments,
                insurance premiums, water, sewer and municipal charges, and
                ground rents, if any, which previously became due and owing in
                respect of the Premises have been paid. Except as disclosed in
                the Title Insurance Policy, there are no pending or proposed
                special or other assessments for public improvements or
                otherwise affecting the Premises, nor are there any contemplated
                improvements to the Premises that may result in such special or
                other assessments until the Indebtedness is paid in full.

        (b)     STATUS OF THE PREMISES.

        (i)     FLOOD OR SEISMIC HAZARD. No portion of the Improvements is
                located in an area identified by the Secretary of Housing and
                Urban Development or the Federal Emergency Management Agency or
                any successor thereto as an area having special flood or seismic
                hazards.

        (ii)    PERMITS; COMPLIANCE WITH LAWS; ENCROACHMENTS. As of the date
                hereof, and until the Indebtedness is paid in full: (a) Borrower
                has obtained and will maintain all necessary certificates,
                licenses, permits and other approvals, governmental and
                otherwise, necessary for the operation of the Premises; (b) the
                Premises and the present and contemplated use, occupancy,
                operation and construction thereof are and will remain in full
                compliance with all covenants and restrictions and all
                applicable licenses, permits and other approvals, and all Legal
                Requirements applicable to the Premises, including, without
                limitation, all zoning and building requirements and all
                requirements of the Americans With Disabilities Act of 1990, as
                amended from time to time (42 U. S. C. Section 12101 et seq.),
                land use and environmental laws and other similar laws; (c) none
                of the Improvements lie or will lie outside of the boundaries of
                the Land or the applicable building restriction lines; and (d)
                no improvements on adjoining properties (now or will) materially
                encroach upon the Land.

        (iii)   UTILITIES. The Premises is served by all utilities required for
                the current or contemplated use thereof. All utility service is
                provided by public utilities and the Premises has accepted or is
                equipped to accept such utility service. The Premises is served
                by public water and sewer systems. All of the foregoing
                utilities are located in the public right-of-way abutting the
                Premises, and all such utilities are connected so as to serve
                the Premises either (a) without passing over other property or,
                (b) if such utilities pass over other property, they do so
                pursuant to valid written easements which appear of record
                against the Premises.

        (iv)    ACCESS. All public roads and streets necessary for service of
                and access to the Premises for the current or contemplated use
                thereof have been completed, are serviceable and are physically
                and legally open for use by the public.

        (v)     CONDITION OF PREMISES. Except as shown in the property condition
                survey or other engineering reports, if any, previously
                delivered to or obtained by Lender, the Premises are in good
                condition and repair and are free from any damage that would
                materially and adversely affect the value of the Premises as
                security for the Loan or the intended use of the Premises. All
                building systems contained therein are in good working order in
                all material respects, subject to ordinary wear and tear.

        (vi)    WETLANDS. No part of the Premises consists of or is classified
                as wetlands, tidelands or swamp and overflow lands.

        (c)     COVENANTS RELATING TO PREMISES.

        (i)     LEASES. All leases or other agreements of any kind relating to
                the use or occupancy of all or any part of the Premises shall be
                with Qualified Tenants pursuant to Qualified Leases. Borrower
                further covenants and agrees not to, without Lender's prior
                written consent, terminate, alter, amend, modify or otherwise
                change the CompUSA/Telvista Lease in any respect, or waive,
                expressly or impliedly, any rights or benefits of Borrower
                thereunder.

                                       7
<PAGE>

        (ii)    ESCROW ACCOUNT. Borrower covenants and agrees as follows:

        (A)     TENANT IMPROVEMENT RESERVE DEPOSITS. Commencing on January 1,
                2005, and continuing on the first (1st) day of each month
                thereafter until the Loan is paid and satisfied in full,
                Borrower shall deposit into the Escrow Account the sum of TWENTY
                THOUSAND EIGHT HUNDRED FIFTY AND NO/100 DOLLARS ($20,850.00)
                (individually, a "TENANT IMPROVEMENT RESERVE DEPOSIT" and,
                collectively, the "TENANT IMPROVEMENT RESERVE DEPOSITS").

        (B)     WITHDRAWALS FROM ESCROW ACCOUNT. In the event Telvista or any
                other person or entity exercises the right to terminate the
                CompUSA/Telvista Lease and provided no Event of Default shall
                have occurred and be continuing, Borrower shall be entitled to
                withdraw, in accordance with the provisions of this SUBSECTION
                3.2(C)(II)(B) and EXHIBIT A, funds on deposit in the Escrow
                Account. All requests for withdrawal from the Escrow Account
                shall be made by Borrower, in writing, and in accordance with
                the terms and provisions of EXHIBIT A attached hereto and
                incorporated herein. Borrower covenants and agrees that it shall
                use all funds withdrawn only for the purpose for which they were
                disbursed.

        (C)     TELVISTA EARLY TERMINATION FEE. In the event Telvista or any
                other person or entity exercises the right to terminate the
                CompUSA/Telvista Lease, Borrower covenants and agrees to
                promptly deposit into the Escrow Account one hundred percent
                (100%) of any fee, payment or other consideration paid by
                Telvista or any other person or entity in connection with such
                termination, including, without limitation, the Termination Fee
                (as defined in the CompUSA/Telvista Lease) of $960,839.00 (the
                "TELVISTA EARLY TERMINATION FEE").

        (D)     ESCROW ACCOUNT/PLEDGE AND ASSIGNMENT. All Tenant Improvement
                Reserve Deposits and any Telvista Early Termination Fee shall be
                placed in the Escrow Account with, and controlled by, Lender for
                disbursement under this Agreement. As additional security for
                Borrower's performance under the Loan Documents, Borrower hereby
                irrevocably pledges and assigns to Lender and hereby grants to
                Lender, a security interest in and right of set-off against: (1)
                the Escrow Account; (2) all cash, instruments, securities,
                investments and other property from time to time transferred or
                credited to, contained in or comprising the Escrow Account; (3)
                all statements, certificates, passbooks and instruments
                representing the Escrow Account or any of the foregoing; (4) any
                and all substitutions or additions of or with respect to any of
                the foregoing; and (5) any and all proceeds and products of any
                of the foregoing, whether now owned and existing or hereafter
                acquired or arising, including, without limitation: (a)
                interest, principal, dividends and other amounts or
                distributions received with respect to any of the foregoing; and
                (b) property received upon the sale, exchange or other
                disposition of any of the foregoing. For purposes of Chapter 9,
                Subchapter L, Section 9.304 of the Texas Business and Commerce
                Code, Lender's jurisdiction shall be the State of Texas and the
                Escrow Account shall be deemed to be maintained at Lender's
                office located at 555 Dividend Drive, Suite 150, Mailstop
                3545PMTX, Coppell, TX 75019

                       ARTICLE IV. ENVIRONMENTAL MATTERS

4.1     ENVIRONMENTAL REPRESENTATIONS AND WARRANTIES. Borrower makes the
following representations and warranties to the Indemnified Parties:

        (a)     Except as disclosed in any Phase I Environmental Report and in
any other environmental reports relating to the Premises delivered to Lender by
Borrower prior to the date hereof (collectively, the "ENVIRONMENTAL Report"),
there is no Hazardous Material at, on or in the Premises, or within any
Improvement on the Premises, nor has any Hazardous Material been discharged from
the Premises or penetrated any surface or subsurface rivers or streams crossing
or adjoining the Premises or the aquifer underlying the Premises;

                                       8
<PAGE>

        (b)     Borrower has complied and, to Borrower's actual knowledge, the
Premises complies with all Environmental Laws relating to the Premises and has
satisfied any recommendations made in the Environmental Report; and

        (c)     There are no pending or threatened claims, actions or
proceedings related to Hazardous Materials or any Environmental Activity or
Condition.

4.2     ENVIRONMENTAL COVENANTS. Borrower at all times covenants and agrees:

        (a)     that it shall not cause or permit the Premises to be used as a
site for the use, generation, manufacture, storage, treatment, release,
discharge, disposal, transportation or presence of any Hazardous Materials, that
it shall comply and cause the Premises to comply with all Environmental Laws and
that it shall not cause or permit any Hazardous Material to exist on or
discharge from any property owned or used by Borrower which would result in any
charge or lien upon the Premises;

        (b)     in response to the presence of any Hazardous Materials on, under
or about the Premises, that Borrower shall immediately take, at Borrower's sole
expense, all remedial action required by any Environmental Laws, including
without limitation the development, implementation, maintenance and completion
of an operations and maintenance program with respect to such Hazardous
Materials in form and substance acceptable to Lender and to promptly pay any
claim and remove any charge or lien upon the Premises due to an Environmental
Activity or Condition;

        (c)     to immediately notify Lender in writing of: (i) the discovery of
any Environmental Activity or Condition; (ii) any claims or actions pending or
threatened against Borrower or the Premises by any governmental entity or agency
or any other Person relating to Hazardous Materials or pursuant to the
Environmental Laws; and (iii) the discovery of any Hazardous Materials on any
real property adjoining or in the vicinity of the Premises that could cause the
Premises or any part thereof to become contaminated with Hazardous Materials;
and

        (d)     to not change or permit any change in the general use of the
Premises without Lender's prior written consent; and

        (e)     to conduct any required remediation on the Premises, using one
or more contractors selected by Borrower and, at the option of Lender, approved
in advance in writing by Lender, in accordance with all applicable Environmental
Laws and in a good, safe and workmanlike manner. Borrower shall pay all costs in
connection with such investigatory and remedial activities and shall promptly
provide to Lender copies of testing reports and results generated in connection
with such activities. Promptly upon completion of such remediation, Borrower
shall restore the Premises to the maximum extent possible, which shall include,
without limitation, capping of any monitoring wells and the repair of any
surface damage, including paving, and the repair, restoration or re-construction
of any damaged Improvements caused by such investigation or remediation, all in
compliance with Environmental Laws. Within thirty (30) days of demand therefor,
Borrower shall provide the Indemnified Parties with a bond, letter of credit or
similar financial assurance satisfactory to Lender evidencing that the necessary
funds are available to perform the obligations established by this Article.

4.3     ENVIRONMENTAL INDEMNITY.

        (a)     BORROWER HEREBY AGREES, AT ITS SOLE COST AND EXPENSE, TO
INDEMNIFY, PROTECT, HOLD HARMLESS AND DEFEND THE INDEMNIFIED PARTIES FOR, FROM
AND AGAINST ANY AND ALL CLAIMS, DEMANDS, DAMAGES, LOSSES, LIABILITIES,
OBLIGATIONS, PENALTIES, FINES, ACTIONS, CAUSES OF ACTION, JUDGMENTS, SUITS,
PROCEEDINGS, COSTS, DISBURSEMENTS AND EXPENSES (INCLUDING, WITHOUT LIMITATION,
FEES, DISBURSEMENTS AND COSTS OF ATTORNEYS, ENVIRONMENTAL CONSULTANTS AND
EXPERTS), AND ALL CONSEQUENTIAL DAMAGES OF ANY KIND OR NATURE WHATSOEVER
(COLLECTIVELY, "LOSSES") WHICH MAY AT ANY TIME BE IMPOSED UPON, INCURRED, OR
SUFFERED BY, OR ASSERTED OR AWARDED AGAINST ANY INDEMNIFIED PARTY DIRECTLY OR
INDIRECTLY RELATING TO OR ARISING FROM ANY OF THE FOLLOWING:

                                       9
<PAGE>

        (i)     ANY PAST, PRESENT OR FUTURE ENVIRONMENTAL ACTIVITY OR CONDITION
                AFFECTING ALL OR ANY PORTION OF THE PREMISES TO THE EXTENT
                ATTRIBUTABLE TO MATTERS, ACTIVITIES OR CONDITIONS OCCURRING
                PRIOR TO LENDER OBTAINING EXCLUSIVE POSSESSION OF THE PREMISES
                THROUGH FORECLOSURE OR DEED IN LIEU THEREOF UNLESS CAUSED BY
                BORROWER;

        (ii)    THE INACCURACY OF ANY OF THE REPRESENTATIONS AND WARRANTIES SET
                FORTH IN THIS ARTICLE; OR

        (iii)   ANY FAILURE OF BORROWER TO PERFORM ANY COVENANT SET FORTH IN
                THIS ARTICLE.

THIS INDEMNITY SHALL INCLUDE THE NEGLIGENCE AND/OR STRICT LIABILITY OF THE
INDEMNIFIED PARTIES, BUT NOT ANY CLAIM, LOSS, DAMAGE, COST, EXPENSE OR LIABILITY
TO THE EXTENT DIRECTLY OR INDIRECTLY ARISING OUT OF THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF ANY MEMBER OF THE INDEMNIFIED PARTIES. In the event any
such claim is made against any of the Indemnified Parties, Lender shall have the
right to select the engineers and consultants in connection with the defense of
the Indemnified Parties, to determine the appropriate legal strategy for such
defense and to compromise or settle such claims, all in Lender's discretion, and
Borrower shall be liable to Lender in accordance with the terms hereof for all
Losses suffered or incurred by Lender in this regard.

        (b)     The obligations of Borrower under this Article are independent
of and shall not be measured or affected by the: (i) modification, expiration,
release or termination of the Loan Documents; (ii) the discharge or repayment in
full of the Loan (including, without limitation, by amounts paid or credit bid
at a foreclosure sale or by discharge in connection with a deed in lieu of
foreclosure); (iii) the receivership, bankruptcy, insolvency or dissolution of
Borrower; or (iv) the sufficiency of any collateral (including, without
limitation, the Premises) given to Lender to secure repayment of the Loan.

        (c)     Notwithstanding any provision in this Article or any other Loan
Document to the contrary, Borrower acknowledges and agrees that this Article
shall supersede any provision in any other Loan Document which in any way limits
the personal liability of Borrower under such Loan Document for any obligations
arising under this Article and that Borrower shall be personally liable for any
obligations arising under this Article, even if the amount of the obligations
exceeds the amount of the Loan.

        (d)     Without limiting any of the other provisions hereof, if Lender
acquires legal possession and/or title to the Premises and becomes aware of any
Environmental Activity or Condition for which Borrower may have liability in
accordance with the other provisions of this Article, whether or not a claim is
asserted against Lender or any of the other Indemnified Parties, Lender shall
have the right to take such action as it shall deem reasonably necessary, in its
discretion, to protect health, safety and the value of the Premises and to
minimize the probability or extent of liability of Lender and the other
Indemnified Parties.

4.4     INSPECTION. Upon reasonable prior notice to Borrower, Lender, its
employees and agents, may from time to time (whether before or after the
commencement of a nonjudicial or judicial foreclosure proceeding), enter and
inspect the Premises in accordance with the terms of the Mortgage.

4.5     ENFORCEMENT. The covenants, agreements, indemnities, terms and
conditions contained in this Article shall extend to and be binding upon
Borrower, its heirs, executors, administrators, successors and assigns, and
shall inure to the benefit of, and may be enforced by Lender or any of the other
Indemnified Parties and its and their successors and assigns.

                   ARTICLE V. EVENTS OF DEFAULT AND REMEDIES

5.1     REMEDIES. Upon the occurrence of an Event of Default, all or any one or
more of the rights, powers and other remedies available to Lender against
Borrower under this Agreement, the Note, the Mortgage or any of the other Loan
Documents, or at law or in equity may be exercised by Lender at any time and
from time to time, without

                                       10
<PAGE>

notice or demand, whether or not all or any portion of the Indebtedness shall be
declared due and payable, and whether or not Lender shall have commenced any
foreclosure proceeding or other action for the enforcement of its rights and
remedies under any of the Loan Documents with respect to the Premises or all or
any portion of the Collateral. Any such actions taken by Lender shall be
cumulative and concurrent and may be pursued independently, singly,
successively, together or otherwise, at such time and in such order as Lender
may determine in its discretion, to the fullest extent permitted by law, without
impairing or otherwise affecting the other rights and remedies of Lender
permitted by law, equity or contract or as set forth herein or in the other Loan
Documents.

                        ARTICLE VI. FINANCIAL REPORTING

6.1     FINANCIAL REPORTING. Borrower shall keep adequate books and records of
account in accordance with generally accepted accounting principles or in
accordance with other methods of accounting acceptable to Lender in its sole and
absolute discretion, consistently applied ("APPROVED ACCOUNTING METHOD") and
shall furnish to Lender the following, which shall be prepared, dated and
certified by Borrower as true, correct and complete in the form required by
Lender, unless otherwise specified below:

        (a)     OPERATING STATEMENT. Not later than forty-five (45) days after
and as of the end of each period consisting of one calendar quarter (the
"REPORTING PERIOD"), operating statements relating to the Premises and showing
all revenues and expenses during each month, quarter and year-to-date
("OPERATING STATEMENTS"), provided that Operating Statements providing fourth
quarter and year-end information shall be delivered not later than ninety (90)
days after the end of the Reporting Period;

        (b)     RENT ROLL. Not later than forty-five (45) days after and as of
the end of each period consisting of two calendar quarters (the "RENT ROLL
REPORTING PERIOD"), a rent roll signed and dated by Borrower, in a form
acceptable to Lender, showing the following lease information with regard to
each tenant: the name of the tenant, the amount of square feet occupied by such
tenant, monthly or other periodic rental amount, dates of commencement and
expiration of the lease and payment status ("RENT ROLL"), provided that a Rent
Roll providing fourth quarter and year-end information shall be delivered not
later than ninety (90) days after the end of the Rent Roll Reporting Period;

        (c)     BALANCE SHEET. Not later than forty-five (45) days after and as
of the end of each Reporting Period, a balance sheet showing all assets and
liabilities of Borrower; and

        (d)     OTHER INFORMATION. At any time, upon Lender's delivery to
Borrower of at least five (5) Business Days prior written notice, such other
information with regard to Borrower, principals of Borrower, Guarantor or the
Premises as Lender may reasonably request in writing, including, without
limitation: (i) tax returns and supporting schedules within thirty (30) days
after filing; and (ii) in connection with a contemplated Securization
Transaction and upon request of Lender: (A) not later than ten (10) days after
such request, Operating Statements and Rent Rolls for the prior calendar month;
and (B) Operating Statements and Rent Rolls not later than ten (10) days after
and as of the end of each calendar month (including the calendar month in which
the request is received); which monthly Operating Statements and Rent Rolls will
be provided to Lender on an ongoing basis if so requested by Lender.

6.2     FORM; WARRANTY. Borrower agrees that all financial statements to be
delivered to Lender pursuant to SECTION 6.1 shall: (a) be complete and correct;
(b) present fairly the financial condition of the party; and (c) disclose all
liabilities that are required to be reflected or reserved against. Borrower
shall be deemed to warrant and represent that, as of the date of delivery of any
such financial statement, there has been no Material Adverse Effect since the
date of the financial statement, nor have any assets or properties been sold,
transferred, assigned, mortgaged, pledged or encumbered since the date of such
financial statement, except as disclosed by Borrower in a writing delivered to
Lender. Borrower agrees that all rent rolls and other information to be
delivered to Lender pursuant to SECTION 6.1 shall not contain any
misrepresentation or omission of a material fact.

6.3     LATE CHARGE. If any financial statement, leasing schedule or other item
required to be delivered to Lender pursuant to SECTION 6.1 is not delivered
within ten (10) days of the date such items are due, Borrower shall immediately
pay to Lender, without demand, as a late charge, the sum of $500 per item;
provided, however, that the payment of the late charge by itself does not
otherwise cure the Event of Default pertaining to such failure to deliver

                                       11
<PAGE>

the financial statements. In addition, Borrower shall promptly pay to Lender an
additional late charge of $500 per item for each full month during which such
item remains undelivered following written notice from Lender. Borrower
acknowledges that Lender will incur additional expenses as a result of any such
late deliveries, which expenses would be impracticable to quantify, and that
Borrower's payments under this Section are a reasonable estimate of such
expenses.

                           ARTICLE VII. MISCELLANEOUS

7.1     SALE OR PARTICIPATION OF LOAN. Lender may at any time sell, assign,
participate or securitize all or any portion of Lender's rights and obligations
under the Loan Documents (any of the foregoing, a "SECURITIZATION TRANSACTION").
Borrower agrees that Lender may disseminate any and all information pertaining
to the Premises, Borrower, any Interest Owner or any Guarantor to any relevant
party in connection with such Securitization Transaction.

7.2     NOTICES. Any and all notices given in connection with this Agreement
shall be deemed adequately given only if in writing and addressed to the party
for whom such notices are intended at the address set forth below. All notices
shall be sent by personal delivery, Federal Express or other
nationally-recognized overnight messenger service, or first class registered or
certified mail, postage prepaid, return receipt requested. A written notice
shall be deemed to have been given to the recipient party on the earlier of: (a)
the date it shall be delivered to the address required by this Agreement; (b)
the date delivery shall have been refused at the address required by this
Agreement; or (c) with respect to notices sent by mail, upon the first to occur
of receipt or the expiration of three (3) days after deposit in the United
States Postal Service mail. Any and all notices referred to in this Agreement,
or which either party desires to give to the other, shall be addressed as
follows:

If to Borrower:  Behringer Harvard 1221 Coit LP
                 15601 Dallas Parkway, Suite 600
                 Addison, Texas  75001
                 Attn:  Gerald J. Reihsen, III

If to Lender:    Washington Mutual Bank, FA
                 c/o National Commercial Operations Center
                 555 Dividend Drive, Suite 150
                 Mailstop 3545PMTX
                 Coppell, TX 75019
                 Attn:  CRE Administration

With a copy to:  Washington Mutual Bank, FA
                 c/o National Commercial Operations Center
                 555 Dividend Drive, Suite 150
                 Mailstop 3545PMTX
                 Coppell, TX 75019
                 Attn: Portfolio Administration

Any party hereto may, by notice given hereunder, designate any further or
different addresses to which subsequent notices, certificates or other
communications shall be sent.

7.3     COSTS AND EXPENSES. Borrower shall immediately pay Lender upon demand
all reasonable costs and expenses incurred by Lender in connection with: (a) the
preparation of this Agreement, all other Loan Documents and all other documents
contemplated hereby; (b) the enforcement or satisfaction by Lender of any of
Borrower's and Guarantor's obligations under this Agreement and the other Loan
Documents; (c) appraisals and inspections of the Premises or Collateral required
by Lender as a result of (i) a Transfer or proposed Transfer, or (ii) an Event
of Default; (d) appraisals and inspections of the Premises or Collateral
required by applicable law, including, without limitation, federal or state
regulatory reporting requirements; and (e) any acts performed by Lender at
Borrower's request or wholly or partially for the benefit of Borrower
(including, without limitation, the preparation or review of amendments,
assumptions, waivers, releases, reconveyances, estoppel certificates or
statements of amounts owing under any Indebtedness). For all purposes of this
Agreement, Lender's costs and expenses shall

                                       12
<PAGE>

include, without limitation, all appraisal fees, costs of engineering and
inspection fees, legal fees and expenses (for both in-house counsel and outside
counsel), servicing fees, accounting fees, environmental consultant fees,
auditor fees, and the cost to Lender of any insurance review, reasonable and
necessary travel expenses, title insurance premiums, escrow charges, title
surveys, reconveyance and notary fees.

7.4     INDEMNITY. WITHOUT IN ANY WAY LIMITING ANY OTHER INDEMNITY CONTAINED IN
THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, BORROWER AGREES TO DEFEND, INDEMNIFY
AND HOLD HARMLESS LENDER AND THE OTHER INDEMNIFIED PARTIES FOR, FROM AND AGAINST
ANY CLAIM, LOSS, DAMAGE, COST, EXPENSE OR LIABILITY TO THE EXTENT DIRECTLY OR
INDIRECTLY ARISING OUT OF: (A) THE MAKING OF THE LOAN, EXCEPT FOR VIOLATIONS OF
BANKING LAWS OR REGULATIONS BY THE INDEMNIFIED PARTIES; (B) THIS AGREEMENT OR
THE OTHER LOAN DOCUMENTS; (C) THE EXECUTION OF THIS AGREEMENT OR THE PERFORMANCE
OF ANY ACT REQUIRED OR PERMITTED HEREUNDER OR BY LAW; (D) ANY FAILURE OF
BORROWER TO PERFORM BORROWER'S OBLIGATIONS UNDER THIS AGREEMENT OR THE OTHER
LOAN DOCUMENTS; (E) ANY ALLEGED OBLIGATION OR UNDERTAKING ON THE INDEMNIFIED
PARTIES' PART TO PERFORM OR DISCHARGE ANY OF THE REPRESENTATIONS, WARRANTIES,
CONDITIONS, COVENANTS OR OTHER OBLIGATIONS OF BORROWER CONTAINED IN ANY OTHER
DOCUMENT RELATED TO THE PREMISES; OR (F) ANY ACT OR OMISSION BY BORROWER OR ANY
CONTRACTOR, AGENT, EMPLOYEE OR REPRESENTATIVE OF BORROWER WITH RESPECT TO THE
PREMISES. THE FOREGOING TO THE CONTRARY NOTWITHSTANDING, THIS INDEMNITY SHALL
INCLUDE THE NEGLIGENCE AND/OR STRICT LIABILITY OF THE INDEMNIFIED PARTIES, BUT
NOT ANY CLAIM, LOSS, DAMAGE, COST, EXPENSE OR LIABILITY TO THE EXTENT DIRECTLY
OR INDIRECTLY ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY
MEMBER OF THE INDEMNIFIED PARTIES. THIS INDEMNITY SHALL INCLUDE, WITHOUT
LIMITATION, ALL COURT COSTS AND REASONABLE ATTORNEYS' FEES (INCLUDING, WITHOUT
LIMITATION, EXPERT WITNESS FEES) PAID OR INCURRED BY LENDER OR ANY OF THE OTHER
INDEMNIFIED PARTIES. BORROWER SHALL PAY IMMEDIATELY UPON LENDER'S DEMAND ANY
AMOUNTS OWING UNDER THIS INDEMNITY TOGETHER WITH INTEREST FROM THE DATE THE
INDEBTEDNESS ARISES UNTIL PAID AT THE RATE OF INTEREST APPLICABLE TO THE
PRINCIPAL BALANCE OF THE NOTE AS SPECIFIED THEREIN. BORROWER AGREES TO USE LEGAL
COUNSEL REASONABLY ACCEPTABLE TO LENDER AND THE OTHER INDEMNIFIED PARTIES IN ANY
ACTION OR PROCEEDING ARISING UNDER THIS INDEMNITY. THE PROVISIONS OF THIS
SECTION SHALL SURVIVE THE RELEASE OR FORECLOSURE OF THE MORTGAGE.

7.5     NO LIABILITY OF LENDER. Borrower acknowledges and agrees that Lender's
acceptance or approval of any action of Borrower or any other matter requiring
Lender's approval, satisfaction, acceptance or consent pursuant to this
Agreement or the other Loan Documents, including any report certificate,
financial statement, appraisal or insurance policy, will not be deemed a
warranty or representation by Lender of the sufficiency, legality, effectiveness
or other import or effect of such matter.

7.6     ATTORNEYS' FEES AND EXPENSES; ENFORCEMENT. If any attorney is engaged by
Lender to enforce or defend any provision of this Agreement or any of the other
Loan Documents, or as a consequence of any Event of Default under the Loan
Documents, with or without the filing of any legal action or proceeding, and
including, without limitation, any fees and expenses incurred in any bankruptcy
proceeding, then Borrower shall immediately pay to Lender, upon demand, the
amount of all attorneys' fees and expenses and all costs incurred by Lender in
connection therewith, together with interest thereon from the date paid by
Lender until repaid by Borrower to Lender at the rate of interest applicable to
the principal balance of the Note as specified therein.

7.7     NO THIRD PARTIES BENEFITED. This Agreement is between and for the sole
benefit of Borrower and Lender, and Lender's successors and assigns, and, except
as provided in SECTION 4.5 hereof, creates no rights whatsoever in favor of any
other Person and no other Person will have any rights to rely hereon.

7.8     TIME IS OF THE ESSENCE. Time is of the essence of each of Borrower's
obligations under this Agreement. The waiver by Lender of any Event of Default
under this Agreement or the other Loan Documents will not be deemed a waiver of
any subsequent Event of Default.

                                       13
<PAGE>

7.9     BINDING EFFECT; NO BORROWER ASSIGNMENT. This Agreement will be binding
upon and inure to the benefit of Borrower and Lender and their respective heirs,
executors, administrators, successors and assigns; provided however Borrower may
not assign its rights or interests in this Agreement without the prior consent
of Lender, as provided in the Mortgage.

7.10    EXECUTION IN COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed an original, and such counterparts
when taken together shall constitute but one agreement.

7.11    CONSENTS AND APPROVALS. Wherever Lender's consent, approval, acceptance
or satisfaction is required under any provision of this Agreement or any of the
other Loan Documents, such consent, approval, acceptance or satisfaction may be
withheld or conditioned by Lender, in its sole and absolute discretion, unless
such provision expressly provides to the contrary.

7.12    INTEGRATION; AMENDMENTS; CONSENTS. This Agreement, together with the
other Loan Documents, constitutes the entire agreement of the parties with
respect to the Loan, and supersedes any prior negotiations or agreements, and
supersedes any loan application submitted by Borrower to Lender and any
commitment letter for the Loan delivered by Lender to Borrower. No modification,
extension, discharge, termination or waiver of any provision of this Agreement
or the other Loan Documents will be effective unless in writing, signed by the
Person against whom enforcement is sought, and will be effective only in the
specific instance for which it is given.

7.13    GOVERNING LAW. The Loan will be deemed to have been made in the State
where the Premises are located and this Agreement and the other Loan Documents
will be governed by and construed and enforced in accordance with the laws of
the State where the Premises are located, without regard to its conflicts of
laws principles. Borrower and Lender each unconditionally and irrevocably waives
any right to assert that the law of any other jurisdiction governs this
Agreement and the other Loan Documents.

7.14    JURISDICTION. Borrower irrevocably submits to the jurisdiction of any
state or federal court sitting in the State of Washington, the State where the
Premises are located, and the State in which Borrower's principal place of
business is located over any suit, action, or proceeding arising out of or
relating to this Agreement or the Loan evidenced hereby and any state court
sitting in the county of the State where the Premises are located over any suit,
action, or proceeding brought by Lender to exercise any of its rights under the
Loan Documents or any action brought by the Lender to enforce its rights with
respect to the Collateral. Borrower irrevocably waives, to the fullest extent
permitted by law, any objection that Borrower may now or hereafter have to the
laying of venue of any such suit, action, or proceeding brought in any such
court and any claim that any such suit, action, or proceeding brought in any
such court has been brought in an inconvenient forum. Borrower further consents
and agrees to service of any summons, complaint or other legal process in any
such suit, action or proceeding by registered or certified U.S. mail, postage
prepaid, to Borrower at the address for notices described in this Agreement, and
consents and agrees that such service shall constitute in every respect valid
and effective service (but nothing herein shall affect the validity or
effectiveness of process served in any other manner permitted by law).

7.15    SEVERABILITY OF PROVISIONS. If a court of competent jurisdiction finds
any provision of this Agreement or the other Loan Documents to be invalid or
unenforceable as to any Person or circumstance in any State, such finding will
not render that provision invalid or unenforceable as to any other Person or
circumstance or in any other State. Where permitted by Legal Requirements, any
provision found invalid or unenforceable will be deemed modified to the extent
necessary to be within the limits of enforceability or validity; however, if
such provision cannot be deemed so modified, it will be deemed stricken and all
other provisions of this Agreement in all other respects will remain valid and
enforceable.

7.16    PREFERENCES. Lender will have no obligation to marshal any assets for
the benefit of Borrower or any other Person or in satisfaction of any or all of
the Indebtedness. Lender will have the continuing and exclusive right to apply
or reverse and reapply any and all payments by Borrower to any portion of the
Indebtedness. To the extent Borrower makes a payment to Lender or Lender
receives any proceeds from the Collateral, which payment or proceeds or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside or required to be repaid to a trustee, receiver or any other Person
under any bankruptcy, insolvency or other law, or for

                                       14
<PAGE>

equitable cause, then, to the extent of such payment or proceeds released by
Lender, the Indebtedness will be revived and continue in full force and effect,
as if such payment or proceeds had not been received by Lender.

7.17    JOINT AND SEVERAL OBLIGATIONS. If this Agreement is executed by more
than one Person as Borrower, the Indebtedness will be joint and several
obligations.

7.18    NO JOINT VENTURE OR PARTNERSHIP. Borrower and Lender intend that the
relationship created under this Agreement and the other Loan Documents be solely
that of borrower and lender. Nothing is intended to create a joint venture,
partnership, tenancy-in-common, or joint tenancy relationship between Borrower
and Lender nor to grant to Lender any interest in the Premises other than that
of mortgagee (or in the case of a deed of trust, beneficiary) or secured party.

7.19    WAIVER OF COUNTERCLAIM. Borrower hereby waives, to the extent permitted
by applicable law, the right to assert any counterclaim, other than a compulsory
counterclaim, in any action or proceeding brought against Borrower by Lender
under any of the Loan Documents.

7.20    PUBLICITY. Borrower hereby grants permission to Lender and any
subsequent holder of the Loan to issue press releases, advertisements and other
promotional materials concerning the financing of the Premises, which materials
may include the property name and description, loan amount, major tenants, loan
term and amortization and the identity of Borrower and Guarantor, if any.

7.21    HEADINGS. The headings and captions of various sections of this
Agreement are for convenience of reference only and are not to be construed as
defining or limiting, in any way, the scope or intent of the provisions hereof.

7.22    CAPITALIZED TERMS. Capitalized terms used herein and not otherwise
defined shall have those meanings given to them in the other Loan Documents.
When the context and construction so require, all capitalized terms used in the
singular herein shall be deemed to have been used in the plural and vice versa.

7.23    WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (A) ARISING UNDER THE LOAN DOCUMENTS, INCLUDING, WITHOUT
LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF; OR (B) IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR
ANY OF THEM WITH RESPECT TO THE LOAN DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR
ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY
HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE PARTIES HERETO TO THE WAIVER OF ANY RIGHT THEY MIGHT OTHERWISE
HAVE TO TRIAL BY JURY.

7.24    JOINT AND SEVERAL LIABILITY. The liability of all persons and entities
obligated in any manner under this Agreement and any of the Loan Documents shall
be joint and several.

7.25    STATE SPECIFIC PROVISIONS. Notwithstanding anything contained herein to
the contrary:

        (a)     ADDITIONAL REPRESENTATION REGARDING BORROWER. Borrower warrants,
represents and covenants that: (i) the loan evidenced by the Note is made to
Borrower solely for the purpose of acquiring or carrying on a business or
commercial enterprise; (ii) all proceeds of the Note shall be used only for
business and commercial purposes; and (iii) no funds disbursed hereunder shall
be used for personal, family, agricultural or household purposes.

                                       15
<PAGE>

        (b)     INTEREST PROVISIONS.

        (i)     SAVINGS CLAUSE. It is expressly stipulated and agreed to be the
                intent of Borrower and Lender at all times to comply strictly
                with the applicable Texas law governing the maximum rate or
                amount of interest payable on the Note or the Related
                Indebtedness (or applicable United States federal law to the
                extent that it permits Lender to contract for, charge, take,
                reserve or receive a greater amount of interest than under Texas
                law). If the applicable law is ever judicially interpreted so as
                to render usurious any amount: (A) contracted for, charged,
                taken, reserved or received pursuant to the Note, any of the
                other Loan Documents or any other communication or writing by or
                between Borrower and Lender related to the transaction or
                transactions that are the subject matter of the Loan Documents;
                (B) contracted for, charged or received by reason of Lender's
                exercise of the option to accelerate the maturity of the Note
                and/or the Related Indebtedness; or (C) Borrower will have paid
                or Lender will have received by reason of any voluntary
                prepayment by Borrower of the Note and/or the Related
                Indebtedness, then it is Borrower's and Lender's express intent
                that all amounts charged in excess of the Maximum Lawful Rate
                shall be automatically cancelled, AB INITIO, and all amounts in
                excess of the Maximum ---------- Lawful Rate theretofore
                collected by Lender shall be credited on the principal balance
                of the Note and/or the Related Indebtedness (or, if the Note and
                all Related Indebtedness have been or would thereby be paid in
                full, refunded to Borrower), and the provisions of the Note and
                the other Loan Documents immediately be deemed reformed and the
                amounts thereafter collectible hereunder and thereunder reduced,
                without the necessity of the execution of any new document, so
                as to comply with the applicable law, but so as to permit the
                recovery of the fullest amount otherwise called for hereunder
                and thereunder; PROVIDED, HOWEVER, if the Note has been paid in
                -------- ------- full before the end of the stated term of the
                Note, then Borrower and Lender agree that Lender shall, with
                reasonable promptness after Lender discovers or is advised by
                Borrower that interest was received in an amount in excess of
                the Maximum Lawful Rate, either refund such excess interest to
                Borrower and/or credit such excess interest against the Note
                and/or any Related Indebtedness then owing by Borrower to
                Lender. Borrower hereby agrees that as a condition precedent to
                any claim seeking usury penalties against Lender, Borrower will
                provide written notice to Lender, advising Lender in reasonable
                detail of the nature and amount of the violation, and Lender
                shall have sixty (60) days after receipt of such notice in which
                to correct such usury violation, if any, by either refunding
                such excess interest to Borrower or crediting such excess
                interest against the Note and/or the Related Indebtedness then
                owing by Borrower to Lender. All sums contracted for, charged or
                received by Lender for the use, forbearance or detention of any
                debt evidenced by the Note and/or the Related Indebtedness
                shall, to the extent permitted by applicable law, be amortized
                or spread, using the actuarial method, throughout the stated
                term of the Note and/or the Related Indebtedness (including any
                and all renewal and extension periods) until payment in full so
                that the rate or amount of interest on account of the Note
                and/or the Related Indebtedness does not exceed the Maximum
                Lawful Rate from time to time in effect and applicable to the
                Note and/or the Related Indebtedness for so long as debt is
                outstanding. In no event shall the provisions of Chapter 346 of
                the Texas Finance Code (which regulates certain revolving credit
                loan accounts and revolving triparty accounts) apply to the Note
                and/or the Related Indebtedness. Notwithstanding anything to the
                contrary contained herein or in any of the other Loan Documents,
                it is not the intention of Lender to accelerate the maturity of
                any interest that has not accrued at the time of such
                acceleration or to collect unearned interest at the time of such
                acceleration.

        (ii)    DEFINITIONS. As used herein, the term "MAXIMUM LAWFUL RATE"
                shall mean the maximum lawful rate of interest which may be
                contracted for, charged, taken, received or reserved by Lender
                in accordance with the applicable laws of the State of Texas (or
                applicable United States federal law to the extent that it
                permits Lender to contract for, charge, take, receive or reserve
                a greater amount of interest than under Texas law), taking into
                account all Charges (as herein defined) made in connection with
                the transaction evidenced by the Note and the other Loan
                Documents. As used herein, the term "CHARGES" shall mean all
                fees, charges and/or any other things of value, if any,
                contracted for, charged, received, taken or reserved by Lender
                in connection with the transactions relating to the Note and the
                other Loan Documents, which are treated as interest under
                applicable law. As used herein, the term "RELATED INDEBTEDNESS"
                shall mean any and all debt paid or payable

                                       16
<PAGE>

                by Borrower to Lender pursuant to the Loan Documents or any
                other communication or writing by or between Borrower and Lender
                related to the transaction or transactions that are the subject
                matter of the Loan Documents, except such debt which has been
                paid or is payable by Borrower to Lender under the Note.

        (iii)   CEILING ELECTION. To the extent that Lender is relying on
                Chapter 303 of the Texas Finance Code to determine the Maximum
                Lawful Rate payable on the Note and/or the Related Indebtedness,
                Lender will utilize the weekly ceiling from time to time in
                effect as provided in such Chapter 303, as amended. To the
                extent United States federal law permits Lender to contract for,
                charge, take, receive or reserve a greater amount of interest
                than under Texas law, Lender will rely on United States federal
                law instead of such Chapter 303 for the purpose of determining
                the Maximum Lawful Rate. Additionally, to the extent permitted
                by applicable law now or hereafter in effect, Lender may, at its
                option and from time to time, utilize any other method of
                establishing the Maximum Lawful Rate under such Chapter 303 or
                under other applicable law by giving notice, if required, to
                Borrower as provided by applicable law now or hereafter in
                effect.

7.26    LIMITATION OF LENDER'S LIABILITY. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, NO CLAIM MAY BE MADE BY BORROWER OR GUARANTOR, OR ANY OTHER PERSON, AGAINST
LENDER, OR THE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS OR AGENTS
OF LENDER, FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES IN
RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY
ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS LOAN
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY ACT, OMISSION OR EVENT
OCCURRING IN CONNECTION THEREWITH AND BORROWER HEREBY WAIVES, RELEASES AND
AGREES NOT TO SUE UPON ANY CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT ACCRUED OR
WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

7.27    INTEGRATION; INTERPRETATION. THIS LOAN AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES. THIS INSTRUMENT MAY BE AMENDED ONLY BY AN INSTRUMENT IN WRITING
EXECUTED BY THE PARTIES HERETO AS PROVIDED IN SECTION 7.12. Any reference in any
of the Loan Documents to the Premises or Improvements shall include all or any
part of the Premises. Any reference to the Loan Documents includes any
amendments, renewals or extensions now or hereafter approved by Lender in
writing.

7.28    ADDENDA. The following addenda are attached hereto, are incorporated by
reference herein and shall constitute a part hereof in all respects:

Definitions Addendum
Single Purpose Entity Addendum

        IN WITNESS WHEREOF, Borrower and Lender have hereunto caused this
Agreement to be executed on the date first above written.

                                     LENDER:

                                     WASHINGTON MUTUAL BANK, FA

                                     By:
                                          -------------------------------------
                                     Name:  Robert J. Caverlee
                                     Title: Vice President

                                       17
<PAGE>

                                     BORROWER:

                                     BEHRINGER HARVARD 1221 COIT LP,
                                     a Texas limited partnership

                                     By:   Behringer Harvard 1221 Coit GP, LLC,
                                           a Texas limited liability company,
                                           its General Partner

                                           By:
                                              ---------------------------------
                                           Name:  Gerald J. Reihsen, III
                                           Title:  Secretary

                                       18
<PAGE>

                                    EXHIBIT A
                             DISBURSEMENT PROCEDURES

1.      DISBURSEMENT FROM ESCROW ACCOUNT. In the event Borrower is entitled to
        withdraw funds from the Escrow Account ("WITHDRAWAL") to pay for Leasing
        Commissions incurred in connection with a Qualified Lease and/or for
        work performed, material supplied and/or costs incurred or due in the
        construction of Tenant Improvements pursuant to a Qualified Lease,
        Borrower shall submit to:

                           Washington Mutual Bank, FA
                               Disbursement Center
                        6011 Connection Drive, Suite 500
                                Irving, TX 75039
                       Attention: Dianne D. Hollingsworth

        a written itemized statement, signed by Borrower ("APPLICATION FOR
        WITHDRAWAL") setting forth:

        1.1     a description of the Leasing Commissions incurred for which the
                Withdrawal is requested and/or the work performed, material
                supplied and/or costs incurred or due with respect to the Tenant
                Improvements for which the Withdrawal is requested; and

        1.2     the total amount incurred, expended and/or due with respect to
                such Leasing Commissions and/or Tenant Improvements.

2.      Each Application for Withdrawal by Borrower shall constitute a
        representation and warranty by Borrower that Borrower is in compliance
        with all of the terms and conditions contained in this Agreement.

3.      Borrower shall have delivered to Lender evidence acceptable to Lender
        which verifies the costs incurred and paid by Borrower, or to be paid by
        the proceeds of the Withdrawal, for which reimbursement or proceeds are
        being sought hereunder. With respect to Tenant Improvements, such
        evidence shall include, but not be limited to, copies of invoices
        aggregating the amount of such Withdrawal and a certification from
        Borrower stating: (i) the nature and type of Tenant Improvements
        installed and/or constructed; (ii) that all Tenant Improvements have
        been installed and/or constructed in a good and workmanlike manner; and
        (iii) that the Tenant Improvements and all work associated therewith
        have been paid for in full (or will be paid in full by the proceeds of
        such Withdrawal). Lender shall have the right to further condition the
        disbursement of such Withdrawal upon Lender's receipt and approval of
        the following: (x) Lender's inspection of the Tenant Improvements and
        confirmation that such Tenant Improvements have been completed and
        conform to all governmental requirements; (y) waivers and releases of
        any mechanics' lien, equitable lien claim or other lien claim rights;
        and (z) evidence that any goods, materials, supplies, fixtures or other
        work in process for which such Withdrawal is requested have been
        incorporated into the Tenant Improvements.

4.      With respect to each Application for Withdrawal, Borrower shall have
        delivered to Lender: (i) a fully-executed copy of the Qualified Lease
        then in force and effect pursuant to which the Tenant Improvements have
        been installed and/or constructed and/or the Leasing Commissions have
        been incurred and/or paid; and (ii) a fully-executed subordination,
        non-disturbance and attornment agreement from each such Qualified Tenant
        acceptable to Lender in its sole and absolute discretion.

5.      Borrower acknowledges that this approval process may result in
        disbursement delays and Borrower hereby consents to all such delays.

                                       19
<PAGE>

                                    EXHIBIT B
                                 LOAN DOCUMENTS

1.      Loan Agreement;

2.      Note;

3.      Mortgage;

4.      Assignment of Management Agreement;

5.      Repayment Guaranty;

6.      Notice and Agreement;

7.      FIRPTA Certification;

8.      UCC Financing Statement(s).

                                       20
<PAGE>

                              DEFINITIONS ADDENDUM

This Addendum is attached to, incorporated into and forms an integral part of,
that certain Loan Agreement dated as of October 4, 2004, by and between
WASHINGTON MUTUAL BANK, FA and BEHRINGER HARVARD 1221 COIT LP, a Texas limited
partnership, as if the following terms and provisions were set forth in full in
the body thereof:

        The following terms shall have the following meanings:

        "AGREEMENT" means the Loan Agreement, as the same may from time to time
hereafter be modified, supplemented or amended.

        "APPROVED LEASE FORM" means Borrower's standard form of lease agreement
submitted to and approved by Lender, in writing, prior to the Effective Date or
otherwise approved in writing by Lender.

        "AS-IS APPRAISED VALUE" means the value of the Premises determined on an
"as-is" basis pursuant to a Premises Appraisal.

        "ASSUMED DEBT SERVICE" means the sum of all principal and interest
payments that would be due and payable during the applicable Twelve Month
Reference Period if the Note was a fixed-rate, self-amortizing term note
providing for an annual rate of interest equal to the Assumed Interest Rate and
equal monthly principal and interest payments sufficient to fully amortize the
outstanding principal balance of the Note at the applicable Determination Date
over ten (10) years.

        "ASSUMED INTEREST RATE" means an annual rate of interest equal to seven
percent (7%).

        "BUSINESS DAY" means a day of the week (but not a Saturday, Sunday or
holiday) on which Lender's primary place of servicing commercial mortgage loans
is open and operating. Unless specifically referenced in this Agreement as a
Business Day, all references to "days" shall be to calendar days.

        "CHARGES" has the meaning ascribed to it in SUBSECTION 7.25(B)(II) of
the Agreement.

        "CODE" means the Internal Revenue Code of 1986, as amended to date, and
as it may be further amended from time to time, any successor statutes thereto,
together with applicable U.S. Department of Treasury regulations issued pursuant
thereto in temporary or final form.

        "COLLATERAL" has the meaning set forth in the Mortgage.

        "COMMITMENT AMOUNT" means SIX MILLION FIVE HUNDRED THOUSAND and No/100
Dollars ($6,000,000.00).

        "COMPUSA/TELVISTA LEASE" has the meaning ascribed to it in SUBSECTION
2.6(H) of the Agreement.

        "COST OF THE PREMISES" means ELEVEN MILLION TWENTY ONE THOUSAND AND
NO/100 DOLLARS ($11,021,000.00).

        "DEBT SERVICE COVERAGE RATIO" means the result, expressed in terms of a
ratio, determined by dividing the Net Operating Income for the applicable period
by the Assumed Debt Service.

        "DETERMINATION DATE" means any date on which the Debt Service Coverage
Ratio is to be calculated for purposes of the Agreement or for purposes of the
Guaranty.

        "DISBURSEMENT DATE" means the date on which Lender first disburses any
portion of the Loan proceeds to Borrower.

                                        1
<PAGE>

        "EFFECTIVE DATE" has the meaning ascribed to it in the preamble of the
Agreement.

        "ENTITY" means a: (a) corporation, (b) limited or general partnership,
(c) limited liability company or (d) trust or trustee(s) acting with respect to
property held in trust.

        "ENVIRONMENTAL ACTIVITY OR CONDITION" means the presence, use,
generation, manufacture, production, processing, storage, release, threatened
release, discharge, disposal, treatment or transportation of any Hazardous
Material on, onto, in (or within), under, over or from the Premises, or within
any Improvement on the Premises, or the violation of any Environmental Law
because of the condition of, or activity on, the Premises.

        "ENVIRONMENTAL LAWS" means any federal, state or local law whether
common law, court or administrative decision, ordinance, regulation, rule, court
order or decree, or administrative order or any administrative policy or
guideline concerning action levels of a governmental authority relating to the
environment, public health, any Hazardous Material or any Environmental Activity
or Condition on, under or about the Premises, in effect from time to time.

        "ESCROW ACCOUNT" means a blocked collateral deposit account with, and
controlled by, Lender, Account Number 0095-0000818930-2, in the name of Borrower
and into which Tenant Improvement Reserve Deposits and the Telvista Early
Termination Fee, if any, will be deposited.

        "EVENT OF DEFAULT" has the meaning set forth in the Mortgage.

        "FIRST EXTENDED MATURITY DATE" means October 4, 2008.

        "GOVERNMENTAL AUTHORITY" means any national, federal, state, regional or
local government, or any other political subdivision of any of the foregoing, in
each case with jurisdiction over Borrower or the Premises.

        "GROSS OPERATING INCOME" means the sum of any and all amounts, payments,
fees, rentals, additional rentals, expense reimbursements (including, without
limitation, all reimbursements by tenants, lessees, licensees and other users of
the Premises) discounts or credits to Borrower, income, interest and other
monies directly or indirectly received by or on behalf of or credited to
Borrower from any person with respect to Borrower's ownership, use, development,
operation, leasing, franchising, marketing or licensing of the Premises.

        "GUARANTOR" means any Person who, or which, in any manner, is or becomes
obligated to Lender under any guaranty or indemnity now or hereafter executed in
connection with respect to the Loan (collectively or severally as the context
thereof may suggest or require). The initial Guarantor is Behringer Harvard
Short-Term Opportunity Fund I LP, a Texas limited partnership.

        "GUARANTY" means that certain Repayment Guaranty, if any, of even date
herewith executed by Guarantor in favor of Lender, as the same may from time to
time hereafter be modified, supplemented or amended, provided that if no such
Guaranty exists, all references in the Loan Documents to Guarantor and the
Guaranty are hereby deleted.

        "HAZARDOUS MATERIALS" means any hazardous or toxic material, substance,
pollutant, allergen, irritant, contaminant or waste, or similar terms, defined
by or regulated as such under any Environmental Laws, including, but not limited
to, petroleum and petroleum products, fungus, mold, mildew, spores or other
biological or microbial agents the presence of which may adversely affect human
health, impair occupancy or materially adversely affect the value or utility of
the Premises, but such term shall not include supplies for cleaning and
maintenance in commercially reasonable amounts required for use in the ordinary
course of business, provided such items are incidental to the use of the
Premises and are stored and used in compliance with all Environmental Laws.

        "IMPROVEMENTS" has the meaning set forth in the Mortgage.

        "INDEBTEDNESS" has the meaning set forth in the Mortgage.

                                       2
<PAGE>

        "INDEMNIFIED PARTIES" means (1) Lender and (including, without
limitation, any participant in the Loan), (2) any entity controlling, controlled
by or under common control with Lender, (3) the directors, officers, employees
and agents of Lender and such other entities, (4) if the Mortgage is a deed of
trust, any Person in its capacity as trustee under such deed of trust and (5)
the successors, heirs and assigns of the Persons described in foregoing clauses
(1) through (4).

        "INTEREST OWNERS" means any Person owning an interest (directly or
indirectly) in Borrower.

        "LAND" has the meaning set forth in the Mortgage.

        "LEASES" has the meaning provided in the Mortgage.

        "LEASING COMMISSIONS" means leasing commissions, brokerage fees or
similar fees incurred by Borrower and payable to an unaffiliated, licensed real
estate broker in the negotiation, delivery and execution of a Qualified Lease.

        "LEGAL REQUIREMENTS" has the meaning provided in the Mortgage.

        "LOAN DOCUMENTS" means those documents set forth on EXHIBIT B attached
hereto and made a part hereof, together with any other documents executed and
delivered in connection with the Loan, as the same may be modified, supplemented
or amended.

        "MATERIAL ADVERSE EFFECT" means a material adverse effect upon: (i) the
business or the financial position or results of operation of Borrower, (ii) the
ability of Borrower to perform, or of Lender to enforce, any of the Loan
Documents or (iii) the value of (x) the Collateral taken as a whole or (y) the
Premises.

        "MATURITY DATE" means October 4, 2007, as the same may be extended
pursuant to SECTIONS 2.4 AND 2.5 of the Agreement.

        "MAXIMUM LAWFUL RATE" has the meaning ascribed to it in SUBSECTION
7.25(B)(II) of the Agreement.

        "MORTGAGE" means the mortgage, deed of trust, trust deed or deed to
secure debt as applicable, dated the date hereof, executed by Borrower and
delivered to Lender as security for the Loan, as the same may be modified,
supplemented, consolidated or amended.

        "NET OPERATING INCOME" means the difference between Gross Operating
Income for the applicable Twelve Month Reference Period and Operating Expenses
for the same Twelve Month Reference Period.

        "NOTE" means and refers to the secured promissory note evidencing the
Loan, dated as of the date hereof, made by Borrower to Lender, as such
promissory note may be modified, amended, supplemented, extended or
consolidated, and any note(s) issued in exchange therefor or in replacement
thereof.

        "NOTICE" means any notice given or required to be given under the Loan
Documents.

        "OPERATING EXPENSES" means Permitted Operating Expenses calculated on an
accrual basis for the applicable period; PROVIDED, HOWEVER, Operating Expenses
shall not include any interest or principal payments on the Loan or any
allowance for depreciation or amortization.

        "ORIGINAL MATURITY DATE" means the Maturity Date.

        "PERMITTED ENCUMBRANCES" means: (i) liens for real estate taxes and
assessments not yet due and payable; and (ii) title exceptions previously
approved by Lender and shown in the Title Insurance Policy.

        "PERMITTED OPERATING EXPENSES" means the following expenses to the
extent that such expenses are reasonable in amount and customary for properties
of this type: (i) operating expenses incurred by Borrower for the

                                       3
<PAGE>

management, operation, cleaning, leasing, maintenance and repair of the
Premises; (ii) taxes, assessments and common area maintenance charges imposed
upon the Premises to the extent that such taxes, assessments and common area
maintenance charges are required to be paid by Borrower and are actually paid by
Borrower; (iii) bond assessments; and (iv) insurance premiums for casualty
insurance and liability insurance carried in connection with the Premises;
PROVIDED, HOWEVER, if any, insurance is maintained as part of a blanket policy
covering the Premises and other properties, the insurance premium included in
this subparagraph shall be the premium fairly allocable to the Premises.
Permitted Operating Expenses shall not include any interest or principal
payments on the Loan or any allowance for depreciation or amortization.

        "PERSON" means any individual, corporation, limited liability company,
partnership, joint venture, estate, trust, unincorporated association, or any
federal, state, county or municipal government or any bureau, department or
agency thereof and any fiduciary acting in such capacity on behalf of any of the
foregoing.

        "PREMISES" has the meaning set forth in the Mortgage.

        "PREMISES APPRAISAL" means an appraisal of the Premises or a portion
thereof by a licensed appraiser, using a methodology and in form and substance
acceptable to Lender in its sole and absolute discretion.

        "QUALIFIED LEASE" means a lease of all or a portion of the Premises by a
Qualified Tenant pursuant to an Approved Lease Form upon terms and conditions
and at rental rates approved, in writing, by Lender in its sole and absolute
discretion.

        "QUALIFIED TENANT" means a reputable, credit worthy tenant approved, in
writing, by Lender in its sole and absolute discretion.

        "RELATED INDEBTEDNESS" has the meaning ascribed to it in SUBSECTION
7.25(B)(II) of the Agreement.

        "RENTS" has the meaning provided in the Mortgage.

        "SECOND EXTENDED MATURITY DATE" means October 4, 2009.

        "SECURITY DEPOSITS" means all security deposits held or to be held with
respect to the Premises, pursuant to all Qualified Leases and other licenses or
agreements for the use or occupancy of space in the Premises.

        "SURVEY" means a survey of the Premises and Improvements prepared by a
licensed engineer or surveyor acceptable to Lender in accordance with the
ALTA/ACSM Minimum Standard Detail Requirements and Classifications for ALTA/ACSM
Land Title Surveys (1992) for an urban business district survey class.

        "STATE" means, as the context may require, any state or commonwealth in
the United States of America, or the District of Columbia.

        "TAKING" has the meaning provided in the Mortgage.

        "TELVISTA" means The Telvista Company, a Delaware business trust.

        "TELVISTA EARLY TERMINATION FEE" has the meaning ascribed to it in
SUBSECTION 3.2(C)(II)(C) of the Agreement.

        "TENANT IMPROVEMENT RESERVE DEPOSIT" has the meaning ascribed to it in
SUBSECTION 3.2(C)(II) of the Agreement.

        "TENANT IMPROVEMENT RESERVE DEPOSITS" has the meaning ascribed to it in
SUBSECTION 3.2(C)(II) of the Agreement.

                                       4
<PAGE>

        "TENANT IMPROVEMENTS" means tenant improvements and finish work
performed with respect to all or any portion of the Premises pursuant to a
Qualified Lease.

        "TITLE INSURANCE POLICY" means a loan policy of title insurance for the
Premises in an amount (not less than the Loan) acceptable to Lender and insuring
the first priority lien in favor of Lender created by the Mortgage, in each case
acceptable to Lender in Lender's discretion.

        "TRANSFER" has the meaning provided in the Mortgage.

        "TWELVE MONTH REFERENCE PERIOD" means any period of twelve (12)
consecutive months which ends on the last day of the most recent month before
the applicable Determination Date.

        "UCC" means the Uniform Commercial Code in effect in the jurisdiction in
which the relevant Collateral is located, as may be amended from time to time.

        IN WITNESS WHEREOF, Borrower and Lender have hereunto caused this
Addendum to be executed on the date of the Loan Agreement of which it forms a
part.

                                      LENDER:

                                      WASHINGTON MUTUAL BANK, FA

                                      By:
                                           -------------------------------------
                                      Name:  Robert J. Caverlee
                                      Title: Vice President

                                      BORROWER:

                                      BEHRINGER HARVARD 1221 COIT LP,
                                      a Texas limited partnership

                                      By:   Behringer Harvard 1221 Coit GP, LLC,
                                            a Texas limited liability company,
                                            its General Partner

                                            By:
                                               ---------------------------------
                                            Name:  Gerald J. Reihsen, III
                                            Title: Secretary

                                       5
<PAGE>

                    SINGLE PURPOSE-ENTITY ADDENDUM (LEVEL I)

This Addendum is attached to, incorporated into and forms an integral part of,
that certain Loan Agreement dated as of October 4, 2004, by and between
WASHINGTON MUTUAL BANK, FA and BEHRINGER HARVARD 1221 COIT LP, a Texas limited
partnership, as if the following terms and provisions were set forth in full in
the body thereof:

1.      As used herein and in the Loan Agreement, the following terms shall have
the following meanings:

(A)     "SINGLE-PURPOSE ENTITY" means an Entity which, at all times since its
formation and thereafter until the Indebtedness is paid in full, complies with
the representations and warranties set forth in SECTION 1.2 of this Addendum.

2.      Borrower hereby represents, warrants and covenants to Lender as follows:

(A)     Borrower has not and will not engage in any business unrelated to the
ownership of the Premises;

(B)     Borrower has not and will not have any assets other than the Premises
(and personal property incidental to the ownership and operation of the
Premises);

(C)     Borrower has not and will not engage in, seek or consent to any
dissolution, winding up, liquidation, consolidation, merger, asset sale, or
amendment of its articles of incorporation, articles of organization,
certificate of formation, operating agreement or limited partnership agreement,
as applicable;

(D)     Borrower, without the unanimous consent of all of its directors, general
partners or members, as applicable, shall not file or consent to the filing of
any bankruptcy or insolvency petition or otherwise institute insolvency
proceedings;

(E)     Borrower has no indebtedness (and will have no indebtedness) other than
(i) the Loan; and (ii) unsecured trade debt not to exceed $250,000.00 in the
aggregate, which is not evidenced by a note and is incurred in the ordinary
course of Borrower's business in connection with owning, operating and
maintaining the Premises and is paid within thirty (30) days from the date
incurred;

(F)     Borrower has not and will not assume or guarantee or become obligated
for the debts of any other entity or hold out its credit as being available to
satisfy the obligations of any other entity;

(G)     Borrower has not and will not acquire obligations or securities of its
shareholders, partners or members, as applicable;

(H)     Borrower has not and will not pledge its assets for the benefit of any
other person or entity; and

(I)     Borrower has not made and will not make loans to any person or entity.

                            [SIGNATURES ON NEXT PAGE]

                                       1
<PAGE>

        IN WITNESS WHEREOF, Borrower and Lender have hereunto caused this
Addendum to be executed on the date of the Loan Agreement of which it forms a
part.

                                      LENDER:

                                      WASHINGTON MUTUAL BANK, FA

                                      By:
                                           -------------------------------------
                                      Name:  Robert J. Caverlee
                                      Title:  Vice President

                                      BORROWER:

                                      BEHRINGER HARVARD 1221 COIT LP,
                                      a Texas limited partnership

                                      By:   Behringer Harvard 1221 Coit GP, LLC,
                                            a Texas limited liability company,
                                            its General Partner

                                            By:
                                               ---------------------------------
                                            Name:  Gerald J. Reihsen, III
                                            Title:  Secretary

                                       2

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