Document:

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                                                                    EXHIBIT 10.5

                                  G REIT, INC.

                     OFFICER AND EMPLOYEE STOCK OPTION PLAN

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ARTICLE I DEFINITIONS                                                       1

1.01. Affiliate                                                             1
1.02. Agreement                                                             1
1.03. Board                                                                 1
1.04. Code                                                                  1
1.05. Committee                                                             1
1.06. Common Stock                                                          1
1.07. Company                                                               1
1.08. Fair Market Value                                                     1
1.09. Independent Director                                                  2
1.10. Offering                                                              2
1.11. Option                                                                2
1.12. Option Price                                                          2
1.13. Participant                                                           3
1.14. Plan                                                                  3

ARTICLE II PURPOSES                                                         3

ARTICLE III ADMINISTRATION                                                  3

ARTICLE IV ELIGIBILITY                                                      4

ARTICLE V COMMON STOCK SUBJECT TO PLAN                                      4

5.01. Common Stock Issued                                                   4
5.02. Aggregate Limit                                                       4
5.03. Reallocation of Shares                                                5

ARTICLE VI OPTIONS                                                          5

6.01. Award                                                                 5
6.02. Option Price                                                          5
6.03. Maximum Option Period                                                 5
6.04. Nontransferability                                                    5
6.05. Status as Employee                                                    6
6.06. Exercise                                                              6
6.07. Payment                                                               7
6.08. Shareholder Rights                                                    7

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ARTICLE VII ADJUSTMENT UPON CHANGE IN COMMON STOCK                          8

ARTICLE VIII COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES AND
  ASSURANCE OF REIT STATUS                                                  9

ARTICLE IX GENERAL PROVISIONS                                               10

9.01. Effect on Employment and Service                                      10
9.02. Unfunded Plan                                                         10
9.03. Rules of Construction                                                 10

ARTICLE X AMENDMENT                                                         10

ARTICLE XI DURATION OF PLAN                                                 11

ARTICLE XII EFFECTIVE DATE OF PLAN                                          11

                                       ii

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                                    ARTICLE I
                                   DEFINITIONS

1.01.    Affiliate

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

1.02.    Agreement

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

1.03.    Board

         Board means the Board of Directors of the Company.

1.04.    Code

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

1.05.    Committee

         Committee means the Executive Compensation Committee of the Board.

1.06.    Common Stock

         Common Stock means the common stock of the Company.

1.07.    Company

         Company means G REIT, Inc.

1.08.    Fair Market Value

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

         (a) If the Common Stock is not traded on a national securities exchange
or quotation system, Fair Market Value means a price determined by the Board in
good faith, taking into account, among other factors the Board deems relevant,
the

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

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

1.09.    Independent Director

         Independent Director means a member of the Board who is not, and has
not been in the two years immediately prior to any determination of such Board
member's Independent Director status, directly or indirectly associated with the
Company or Triple Net Properties, L.L.C. within the meaning of Section I(B)(14)
of the NASAA Statement of Policy Regarding Real Estate Investment Trusts.

1.10.    Offering

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

1.11.    Option

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

1.12.    Option Price

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

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

         (b) If the date of grant of an Option occurs during the Offering but
after the date of the commencement of the Offering, the Option Price for such
Option

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shall be the greater of (i) the price per share of Common Stock in the Offering
less the dealer manager's selling commission and marketing support and due
diligence reimbursement fee allocable to a share of Common Stock and (ii) the
Fair Market Value on the date of grant of such Option.

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

1.13.    Participant

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

1.14.    Plan

         Plan means the G REIT, Inc. Officer and Employee Stock Option Plan.

                                   ARTICLE II
                                    PURPOSES

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

                                   ARTICLE III
                                 ADMINISTRATION

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

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

                                   ARTICLE IV
                                   ELIGIBILITY

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

                                    ARTICLE V
                          COMMON STOCK SUBJECT TO PLAN

5.01.    Common Stock Issued

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

5.02.    Aggregate Limit

         The maximum aggregate number of shares of Common Stock that may be
issued under this Plan is 400,000 shares. The maximum aggregate number of shares
of Common Stock that may be issued under this Plan shall be subject to
adjustment as provided in Article VII.

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5.03.    Reallocation of Shares

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

                                   ARTICLE VI
                                     OPTIONS

6.01.    Award

         In accordance with the provisions of Article IV, the Board, acting on
recommendation by the Committee, will designate each individual to whom an
Option is to be granted and will specify the number of shares of Common Stock
covered by such awards; provided, however, that no Participant may be granted
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Options in any calendar year covering more than 135,000 shares. The Board will
make grants pursuant to this Section 6.01 on the date of each annual meeting of
the Company's shareholders and at such other times as it may determine.

6.02.    Option Price

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

6.03.    Maximum Option Period

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

6.04.    Nontransferability

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

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6.05.    Status as Employee

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

6.06.    Exercise

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

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

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

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

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

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Participant's termination of employment, for three months following such
termination of employment or, if sooner, during the period prior to the stated
expiration date of the Option or Options.

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

6.07.    Payment

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

6.08.    Shareholder Rights

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

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                                   ARTICLE VII
                     ADJUSTMENT UPON CHANGE IN COMMON STOCK

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

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

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

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granted; the per individual limitations on the number of shares for which
Options may be granted; or the terms of outstanding Options.

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

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

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

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                                   ARTICLE IX
                               GENERAL PROVISIONS

9.01.    Effect on Employment and Service

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

9.02.    Unfunded Plan

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

9.03.    Rules of Construction

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

                                    ARTICLE X
                                    AMENDMENT

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

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                                   ARTICLE XI
                                DURATION OF PLAN

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

                                   ARTICLE XII
                             EFFECTIVE DATE OF PLAN

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

                                       11<PAGE>

                                                                    EXHIBIT 10.6

                               ADVISORY AGREEMENT

         ADVISORY AGREEMENT made as of _________________, 2002 between G REIT,
Inc., a Virginia corporation (the "Company"), and Triple Net Properties, LLC, a
Virginia limited liability company (the "Advisor").

                                   WITNESSETH:

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

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

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

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

         1.       Definitions.

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

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

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

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

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

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

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

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

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

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

                  (j)  "Gross Income From Properties" shall mean all cash
         receipts derived from the operation of the Company's property,
         excluding (i) tenant

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         security deposits unless and until such deposits are forfeited upon a
         tenant default, and (ii) proceeds from insurance claims, condemnation
         proceedings, sales or refinancings.

                  (k)  "Incentive Distribution" shall mean an amount equal to
         15% of the Partnership's operating cash flow payable to the Advisor
         after the Company has received and paid to Shareholders the sum of (i)
         the Cumulative Return, and (ii) and remaining shortfall in the recovery
         of Invested Capital with respect to prior sales of properties as
         described in Section 9(h).

                  (l)  "Incentive Distribution Upon Dispositions" shall mean an
         amount equal to 15% of the net proceeds from the sale of a property
         after the Company has received and paid to Shareholders the sum of (i)
         Invested Capital initially allocated to that property, and (ii) any
         remaining shortfall in the recovery of Invested Capital with respect to
         prior sales of properties, and (iii) any remaining shortfall in the
         Cumulative Return as described in Section 9(i).

                  (m)  "Independent Directors" shall mean a Director who is not,
         and within the last two (2) years has not been, directly or indirectly
         associated with a Sponsor or the Advisor by virtue of (i) ownership of
         an interest in a Sponsor, the Advisor or their Affiliates, (ii)
         employment by a Sponsor, the Advisor or their Affiliates, (iii) service
         as an officer or director of a Sponsor, the Advisor or their
         Affiliates, (iv) performance of services, other than as a Director, for
         the Company, (v) service as a director or trustee of more than three
         (3) real estate investment trusts organized by a Sponsor or advised by
         the Advisor, or (vi) maintenance of a material business or professional
         relationship with a Sponsor, the Advisor or any of their Affiliates. An
         indirect relationship shall include circumstances in which a Director's
         spouse, parents, children, siblings, mothers- or fathers-in-law, sons-
         or daughters-in-law or brothers- or sisters-in-law is or has been
         associated with a Sponsor, the Advisor, any of their Affiliates or the
         Company. A business or professional relationship is considered material
         if the gross revenue derived by the Director from a Sponsor, the
         Advisor and Affiliates exceeds five percent (5%) of either the
         Director's annual gross revenue during either of the last two (2) years
         or the Director's net worth on a fair market value basis.

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

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

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

                  (q)  "Partnership" shall mean G REIT, L.P., a Virginia limited
         partnership.

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

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

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

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

                  (v)  "Real Estate Commission" shall mean the real estate or
         brokerage commission paid in connection with the purchase of a
         property.

                  (w)  "Shares" shall mean the shares of Common Stock of the
         Company.

                                       4

<PAGE>

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

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

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

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

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

               (iv)   possessing significant rights to control Company
          properties;

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

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

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

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

                                       5

<PAGE>

               (ii)   interest payments;

               (iii)  taxes;

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

               (v)    the Incentive Distribution Upon Dispositions; and

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

     2.   Duties of Advisor.

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

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

          (b)  Manage the Company's day-to-day operations to effect the
     investment program adopted by the Board of Directors and perform or
     supervise the performance of such other administrative functions necessary

                                       6

<PAGE>

     in connection with the management of the Company as may be agreed upon by
     the Advisor and the Company;

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

          (d)  On behalf of the Company, investigate, select and conduct
     relations with lenders, consultants, accountants, brokers, property
     managers, attorneys, underwriters, appraisers, insurers, corporate
     fiduciaries, banks, builders and developers, sellers and buyers of
     investments and persons acting in any other capacity specified by the
     Company from time to time, and enter into contracts with, retain and
     supervise services performed by such parties in connection with investments
     which have been or may be acquired or disposed of by the Company;

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

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

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

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

                                       7

<PAGE>

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

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

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

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

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

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

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

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

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

                                       8

<PAGE>

         3.       No Partnership or Joint Venture.

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

         4.       Records.

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

         5.       REIT Qualifications.

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

         6.       Bank Accounts.

         At the direction of the Board of Directors, the Advisor may establish
and maintain bank accounts in the name of the Company, and may collect and
deposit into and disburse from such accounts any money on behalf of the Company,
under such terms and conditions as the Board of Directors may approve, provided
that no funds in any such account shall be commingled with funds of the Advisor.
The Advisor shall from time to time, as the Company may require, render
appropriate accountings of such collections, deposits and disbursements to the
Board of Directors and to the auditors of the Company.

         7.       Fidelity Bond.

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

                                        9

<PAGE>

         8.       Information Furnished Advisor.

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

         9.       Compensation.

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

                  (a) The Company will reimburse the Advisor for Organizational
         and Offering  Expenses incurred on behalf of the Company.

                  (b) In property acquisitions in which an Affiliate of the
         Advisor or the Company acts as real estate broker, such Affiliate may
         receive a Real Estate Commission from the seller or the Company of up
         to 3% of the purchase price of the property.

                  (c) The Company will reimburse the Advisor for Acquisition
         Expenses. The total of all Acquisition Expenses paid when added to any
         Real Estate Commission paid in connection with the purchase of a
         property may not exceed an amount equal to 6% of the contract purchase
         price for the property. The total of all Acquisition Expenses paid in
         connection with the purchase of all properties by the Company may not
         exceed 0.5% of the Gross Offering Proceeds.

                  (d) The Company will reimburse the Advisor and its Affiliates
         for: (i) the cost to the Advisor or its Affiliates of goods and
         services used for and by the Company and obtained from unaffiliated
         parties, and (ii) administrative services related thereto.
         "Administrative Services" include only ministerial services such as
         typing, recordkeeping, preparation and dissemination of Company
         reports, preparation and maintenance of records regarding Shareholders,
         recordkeeping and administration of the Company's Dividend Reinvestment
         Plan, preparation and dissemination of responses to Shareholder
         inquiries and other communications with Shareholders and any other
         recordkeeping required for Company purposes. Such reimbursements are
         subject to limitations imposed by Sections 10(b) and (c) hereof;

                                       10

<PAGE>

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

                  (f) The Company will pay to an Affiliate of the Advisor or a
         third party a Property  Management  Fee equal to 5% of the Gross Income
         from Properties. This fee will be paid monthly; and

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

                  (h) The Partnership will pay an Incentive Distribution to the
         Advisor equal to 15% of the Partnership's operating cash flow after the
         Company has received and paid to the Shareholders the sum of (i) the
         Cumulative Return, and (ii) any remaining shortfall in the recovery of
         Invested Capital with respect to prior sales of properties. If there is
         a shortfall in the Cumulative Return to Shareholders at the end of any
         calendar year and the Advisor previously has received Incentive
         Distributions, other than those that have been repaid previously, the
         Advisor will repay to the Partnership such portion of those Incentive
         Distributions sufficient to cause the Cumulative Return to be met. In
         no event will the aggregate amount repaid by the Advisor to the
         Partnership exceed the aggregate amount of Incentive Distributions that
         the Advisor has received previously.

                  (i) Upon the sale of a property by the Company, the
         Partnership will pay an Incentive Distribution on Dispositions equal to
         15% of the net proceeds from the sale after the Company has received
         and paid to the Shareholders the sum of (i) the Invested Capital that
         initially was allocated to that property, (ii) any remaining shortfall
         in the recovery of Invested Capital with respect to prior sales of
         properties, and (iii) any remaining shortfall in the Cumulative Return.
         If the Company, and in turn the Shareholders, have not received a
         return of Invested Capital or if there is a shortfall in the Cumulative
         Return after the sale of the last property and the Advisor previously
         has received Incentive Distributions, other than Incentive

                                       11

<PAGE>

         Distributions that have been repaid previously, the Advisor will repay
         to the Partnership a portion of those distributions sufficient to cause
         the Company, and in turn the Shareholders, to receive a full return of
         Invested Capital and the full Cumulative Return. In no event will the
         aggregate amount repaid by the Advisor to the Partnership exceed the
         aggregate amount of Incentive Distributions that the Advisor previously
         received.

         10.      Compensation for Additional Services, Certain Limitations.

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

                  (b) In extraordinary circumstances fully justified to the
         official or agency administering the state securities laws, the Advisor
         and its Affiliates may provide other goods and services to the Company
         if all of the following criteria are met: (i) the goods or services
         must be necessary to the prudent operation of the Company; or (ii) the
         compensation, price or fee must be equal to the lesser of 90% of the
         compensation, price or fee the Company would be required to pay to
         independent parties who are rendering comparable services or selling or
         leasing comparable goods on competitive terms in the same geographic
         location, or 90% of the compensation, price or fee charged by the
         Advisor or its Affiliates for rendering comparable services or selling
         or leasing comparable goods on competitive terms. In addition, any such
         payment will be subject to the further limitation described in
         paragraph (c) below. Extraordinary circumstances shall be presumed only
         when there is an emergency situation requiring immediate action by the
         Advisor or its Affiliates and the goods or services are not immediately
         available from unaffiliated parties. Services which may be performed in
         such extraordinary circumstances include emergency maintenance of
         Company properties, janitorial and other related services due to
         strikes or lock-outs, emergency tenant evictions and repair services
         which require immediate action, as well as operating and re-leasing
         properties with respect to which the leases are in default or have been
         terminated.

                  (c) No reimbursement will be permitted to the Advisor or its
         Affiliates under Section 9(d)(ii) above for items such as rent,
         depreciation, utilities, capital equipment and other administrative
         items and the salaries,

                                       12

<PAGE>

         fringe benefits, travel expenses and other administrative items of any
         controlling persons of the Advisor, its Affiliates or any other
         supervisory personnel except in those instances in which the Company
         believes it to be in the best interest of the Company that the Advisor
         or its Affiliates operate or otherwise deal with, for an interim
         period, a property with respect to which the lease is in default or
         terminated. Permitted reimbursements, except as set forth above,
         include salaries and related salary expenses for non-supervisory
         services which could be performed directly for the Company by
         independent parties such as legal, accounting, transfer agent, data
         processing and duplication. Controlling persons, for purposes of this
         Section, include, but are not limited to those entities or individuals
         holding 5% or more of the ownership interests of the Advisor or a
         person having the power to direct or cause the direction of the
         Advisor, whether through ownership of voting securities, by contract or
         otherwise, and any person, irrespective of his or her title, who
         performs functions for the Advisor similar to those of: (a) chairman or
         member of the board of directors; or (b) president or executive
         vicepresident.

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

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

         11.  Statements.

         The Advisor shall furnish to the Company not later than the 30th day
following the end of each Fiscal Year, a statement showing a computation of the
fees or other compensation payable to the Advisor or an Affiliate of the Advisor
with respect to such Fiscal Year under Sections 9 and 10 hereof. The final
settlement of compensation payable under Sections 9 and 10 hereof for each
Fiscal Year shall be subject to adjustments in accordance with, and upon
completion of, the annual audit of the Company's financial statements.

                                       13

<PAGE>

         12.  Listing of the Shares.

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

         13.  Expenses of the Company.

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

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

              (b) The cost of borrowed money;

              (c) All taxes applicable to the Company;

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

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

                                       14

<PAGE>

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

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

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

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

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

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

         14.  Reimbursement by Advisor.

         The parties acknowledge that pursuant to the "Statement of Policy
Regarding Real Estate Investment Trusts," as revised and adopted by the North
American Securities Administrators Association on September 29, 1993, Total
Operating Expenses of the Company shall be deemed to be excessive if in any
Fiscal Year they exceed the greater of (a) 2% of the Company's Average Invested
Assets for such Fiscal Year; or (b) 25% of the Net Income for such Fiscal Year.
The Independent Directors shall have the fiduciary responsibility of limiting
such expenses to amounts that do not exceed such limitations. Within 60 days
after the end of any fiscal quarter of the Company for which Total Operating
Expenses (for the 12 months then ended) exceed 2% of Average Invested Assets or
25% of Net Income, whichever is greater, the Company shall send to the
Shareholders written notice of such fact together with the determination of the
Independent Directors as to whether such higher operating expenses were
justified and if so justified, an explanation of the facts the Independent
Director considered in arriving at that conclusion also shall be included. If
the Independent Directors determine that such excess expenses are not justified,
then the Advisor shall reimburse the Company the

                                       15

<PAGE>

amount by which the aggregate expenses incurred by the Company exceed the
limitations described above at the end of the Fiscal Year; provided, however,
that the Company may instead permit such reimbursements to be effected by a
reduction in the amount of the next payments of compensation under Section 9.

         15.  Other Activities of the Advisor.

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

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

         16.  Term; Termination of Agreement.

         This Agreement will continue in force until __________________, 2003,
subject to successive one year renewals with the written mutual consent of the
parties including approval of a majority of the Independent Directors.

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

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

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

         17.  Assignments.

         The Company may terminate this Agreement immediately in the event of
its assignment by the Advisor except an assignment to a successor organization
which

                                       16

<PAGE>

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

         18.  Default, Bankruptcy, etc.

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

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

              (b) A court of competent jurisdiction enters a decree or order for
         relief in respect of the Advisor in any involuntary case under the
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or appoints a receiver, liquidator, assignee, custodian,
         trustee, sequestrator (or similar official) of the Advisor or for any
         substantial part of its property or orders the winding up or
         liquidation of the Advisor's affairs; or

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

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

                                       17

<PAGE>

         19.   Action Upon Termination.

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

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

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

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

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

         20.  Amendments.

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

         21.  Successors and Assigns.

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

         22.  Governing Law.

         The provisions of this Agreement shall be governed, construed and
interpreted in accordance with the laws of the Commonwealth of Virginia, without
regard to its conflict of laws provisions.

                                       18

<PAGE>

         23.  Liability and Indemnification.

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

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

              (c) The Company may advance amounts to persons entitled to
         indemnification hereunder for legal and other expenses and costs
         incurred as a result of any legal action for which indemnification is
         being sought only if all of the following conditions are satisfied: (i)
         the legal action relates to acts or omissions with respect to the
         performance of duties or services by the indemnified party for or on
         behalf of the Company; (ii) the legal action is initiated by a third
         party and a court of competent jurisdiction specifically approves such
         advancement; and (iii) the indemnified party receiving such advances
         undertakes to repay the advanced funds to the Company, together with
         the applicable legal rate of interest thereon, in which such party
         would not be entitled to indemnification.

                                       19

<PAGE>

         24.  Notices.

         Any notice, report or other communication required or permitted to be
given hereunder shall be in writing unless some other method of giving such
notice, report or other communication is accepted by the party to whom it is
given and shall be given by being delivered at the following addresses of the
parties hereto:

              The Company and/or the Board of Directors:

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

              The Advisor:

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

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

         25.  Headings.

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

                                       20

<PAGE>

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

COMPANY:

G REIT, INC., a Virginia corporation

By:________________________________________
Title:_____________________________________

ADVISOR:

TRIPLE NET PROPERTIES, LLC, a
Virginia limited liability company

By:________________________________________
Title:_____________________________________

                                       21

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