Document:

Exhibit

Exhibit 10.9

ADVISORY AGREEMENT
This ADVISORY AGREEMENT (this “Agreement”) is entered into on February 10, 2017, among BEHRINGER HARVARD OPPORTUNITY REIT II, INC., a Maryland corporation (the “Company”), BEHRINGER HARVARD OPPORTUNITY OP II LP, a Texas limited partnership (the “Operating Partnership”), and LSG DEVELOPMENT LLC, a Delaware limited liability company (the “Advisor”).
W I T N E S S E T H
WHEREAS, the Operating Partnership was organized to acquire, own, operate, lease and manage real estate properties on behalf of the Company; and
WHEREAS, BHO II, Inc., a wholly owned subsidiary of the Company, is the general partner of the Operating Partnership; and
WHEREAS, Behringer Harvard Opportunity Advisors II, LLC (the “Behringer Advisor”) previously provided advisory services to the Company pursuant to that certain Fifth Amended and Restated Advisory Management Agreement dated as of July 25, 2016 (the “Behringer Advisory Agreement”); and
WHEREAS, the Behringer Advisor and the Company are entering into that certain Termination of Advisory Management Agreement concurrently with the execution of this Agreement pursuant to which the Behringer Advisory Agreement will be terminated; and
WHEREAS, an Affiliate of the Advisor and the Behringer Advisor are entering into that certain Transition Services Agreement concurrently with the execution of this Agreement; and
WHEREAS, the Company and the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities available to 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, all as provided herein;
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereby agree as follows:

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ARTICLE I
DEFINITIONS
The following defined terms used in this Agreement shall have the meanings specified below:
2%/25% Guidelines.  Has the meaning set forth in Section 3.03 hereof. 
Acquisition Expenses.  A non-accountable acquisition expense reimbursement in the amount of:  (i) 0.25% of the funds paid for purchasing an Asset, including any debt attributable to the Asset, plus 0.25% of the funds budgeted for development, construction or improvement in the case of Assets that the Company acquires and intends to develop, construct or improve or (ii) 0.25% of the funds advanced in respect of a loan or other investment.  Acquisition Expenses also include any investment-related expenses due to third parties in the case of a completed investment, including legal fees and expenses, travel and communications expenses, costs of appraisals, accounting fees and expenses, third-party brokerage or finder’s fees, title insurance, premium expenses and other closing costs.  Acquisition Expenses also include any payments approved in advance by the Board, and made to (i) a prospective seller of an asset, (ii) an agent of a prospective seller of an asset, or (iii) a party that has the right to control the sale of an asset intended for investment by the Company that are not refundable and that are not ultimately applied against the purchase price for such asset.
Administrative Services.  The services provided by the Advisor (either directly or through a third party) to fulfill its duties to the Company pursuant to Sections 2.02, 2.03, 2.04 and 2.05.
Administrative Services Reimbursement.  The amount payable to the Advisor for providing the Administrative Services pursuant to Section 3.01(e).  The Administrative Services Reimbursement is intended to reimburse for all or a portion of the costs associated with providing the Administrative Services.
Advisor.  LSG Development LLC, a Delaware limited liability company, any successor advisor to the Company, or any Person to which LSG Development LLC or any successor advisor subcontracts all or substantially all of its functions.
Advisor Indemnified Party.  Has the meaning set forth in Section 5.01 hereof.
Advisor Payments.  Has the meaning set forth in Section 3.03 hereof.
Advisor Personnel.  Any person employed by the Advisor or any Affiliate of the Advisor who performs services on behalf of the Advisor for the Company, excluding those persons who also serve as an executive officer of the Company.
AFD Personnel.  Advisor Personnel who are a subset of Advisor Personnel and provide AFD Services.  

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AFD Services.  Services provided by Advisor Personnel in connection with the acquisition, financing, or disposition of Assets.  AFD Services include management of the acquisition, financing, and disposition processes, and performance of services in support of acquisition, financing, and disposition transactions, including (i) review and preparation of due diligence materials associated with the transactions, (ii) supervision or performance of site visits and tenant interviews, (iii) review of rent rolls, (iv) verification of leases and other contracts relating to the ownership, capital structure or operations of an Asset, and (v) review of environmental and property condition reports.
Affiliate or Affiliated.  As to any Person, (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 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.
Articles of Incorporation.  The Articles of Incorporation of the Company filed with the Maryland State Department of Assessments and Taxation in accordance with the Maryland General Corporation Law, as amended or restated from time to time.
Assets.  Properties, Mortgages, loans and other direct or indirect investments (other than investments in bank accounts, money market funds or other current assets) owned by the Company, directly or indirectly through one or more of its Affiliates or Joint Ventures or through other investment interests.
Average Invested Assets.  For a specified period, the average of the aggregate book value of the Assets before deduction for depreciation, bad debts or other non-cash reserves, computed by taking the average of the values at the end of each month during the period.
Bankruptcy Code.  Has the meaning set forth in Section 6.14 hereof.
Behringer Advisor.  Has the meaning set forth in the recitals. 
Behringer Advisory Agreement.  Has the meaning set forth in the recitals. 
Board.  The Board of Directors of the Company.
Business Operations Infrastructure Costs.  The costs associated with maintaining business operations infrastructure that can be shared between the Company and other investment funds sponsored by Affiliates of the Advisor to achieve operational cost efficiency, including:  (i) network infrastructure, computers and information technology; (ii) business center costs; (iii) office management services; (iv) human resource services; (v) office space costs; (vi) rent for office space for shared service functions; (vii) office furniture and equipment; (viii) telephone and communications; (ix) general office supplies costs; and (x) kitchen food and beverage costs.

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Bylaws.  The bylaws of the Company, as the same are in effect from time to time.
Change of Control.  Any (i) event (including, without limitation, issue, transfer or other disposition of Shares of capital stock of the Company or equity interests in the Operating Partnership, merger, share exchange or consolidation) after which any “person” (as that term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company or the Operating Partnership representing greater than 50% of the combined voting power of the Company’s or the Operating Partnership’s then outstanding securities, respectively; provided, that, a Change of Control shall not be deemed to occur as a result of any widely distributed public offering of the Shares, or (ii) direct or indirect sale, transfer, conveyance or other disposition (other than pursuant to clause (i)), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company or the Operating Partnership, taken as a whole, to any “person” (as that term is used in Sections 13(d) and 14(d) of the Exchange Act).
Code.  Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.  Reference to any provision of the Code shall mean the provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
Company.  Behringer Harvard Opportunity REIT II, Inc., a corporation organized under the laws of the State of Maryland.  Unless the context clearly indicates otherwise, references to the Company shall include its direct and indirect subsidiaries, including the Operating Partnership.
Director.  A member of the Board.
Distributions.  Any dividends or other distributions of money or other property by the Company to Stockholders, including distributions that may constitute a return of capital for federal income tax purposes but excluding distributions that constitute the redemption of any Shares and excluding distributions on any Shares before their redemption.
Excess Amount.  Has the meaning set forth in Section 3.03 hereof.
Exchange Act.  The Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto.
Expense Year.  Has the meaning set forth in Section 3.03 hereof.
Fully Burdened Compensation.  Direct costs associated with salaries and wages and the related employment taxes and benefits for Advisor Personnel who are generally associated within a specific department or group whose job duties and responsibilities are aligned.
Hard Costs.  The actual costs of goods, services, and materials incurred by the Advisor, including:  (i) mobile phones and personal communication costs; (ii) travel and hotel expenses; (iii) meals and entertainment; (iv) conference fees and related charges; (v) employee 

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recruiting fees; (vi) employee relocation costs; (vii) employee gifts and other; (viii) contract labor; (ix) education and training; (x) dues, subscriptions and licenses; (xi) office supplies; (xii) printing costs; (xiii) computer accessories and software and licensing costs; (xiv) postage, shipping and courier expenses.
Independent Director.  A Director who is not on the date of determination, and within the last two years from the date of determination has not been, directly or indirectly associated with the Advisor by virtue of (i) ownership of an interest in the Advisor or any of their Affiliates, other than the Company, (ii) employment by the Company, the Advisor or any of their Affiliates, (iii) service as an officer or director of the Advisor or any of their Affiliates, other than as a Director of the Company, (iv) performance of services for the Company, other than as a Director of the Company, (v) service as a director or trustee of more than three real estate investment trusts advised by the Advisor or its Affiliates, or (vi) maintenance of a material business or professional relationship with the Advisor or any of their Affiliates.  Notwithstanding the foregoing, and consistent with (v) above, serving as a director of or receiving director fees from or owning an interest in a REIT or other real estate program advised or managed by the Advisor or its Affiliates shall not, by itself, cause a Director to be deemed associated with the Advisor.  A business or professional relationship is considered material if the aggregate annual gross revenue derived by the Director from the Advisor and their Affiliates (excluding fees for serving as a director of the Company or other REIT or real estate program organized or advised or managed by the Advisor or its Affiliates) exceeds five percent of either the Director’s annual gross income during either of the last two years or the Director’s net worth on a fair market value basis.  An indirect association with the Advisor shall include circumstances in which a Director’s spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in-law, or brother- or sister-in-law is or has been associated with the Advisor, any of their Affiliates, or the Company.
Intellectual Property Rights.  All rights, titles and interests, whether foreign or domestic, in and to any and all trade secrets, confidential information rights, patents, invention rights, copyrights, service marks, trademarks, know-how, or similar intellectual property rights and all applications and rights to apply for such rights, as well as any and all moral rights, rights of privacy, publicity and similar rights and license rights of any type under the laws or regulations of any governmental, regulatory, or judicial authority, foreign or domestic and all renewals and extensions thereof.
Joint Ventures.  A legal organization formed to provide for the sharing of the risks and rewards in an enterprise co-owned and operated for mutual benefit by two or more business partners and established to acquire or hold Assets.
Listing or Listed.  The filing of a Form 8-A to register any class of the Company’s securities on a national securities exchange and an original listing application related thereto; provided, that the Shares shall not be deemed to be Listed until trading in the Shares shall have commenced on the relevant national securities exchange.
Mortgages.  In connection with mortgage financing provided, invested in or purchased by the Company, all of the notes, deeds of trust, security interests or other evidence of indebtedness or obligations, which are secured or collateralized by Real Property owned by the 

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borrowers under such notes, deeds of trust, security interests or other evidence of indebtedness or obligations.
Net Income.  For any period, the Company’s total revenues applicable to that period, less the total expenses applicable to the period other than additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of the Assets.
Notice.  Has the meaning set forth in Section 6.03 hereof.
Offering.  Any public offering of Shares pursuant to an effective registration statement filed under the Securities Act, other than a public offering of Shares under a distribution reinvestment plan.
Operating Partnership. Behringer Harvard Opportunity OP II, LP, a Delaware limited partnership, through which the Company may own Assets or otherwise conduct its operations.
Operating Partnership Agreement. The Amended and Restated Agreement of Limited Partnership of the Operating Partnership, among the Company, BHO II, Inc., BHO Business Trust II and the limited partner(s) set forth on Exhibit A thereto from time to time, dated as of January 4, 2008, as the same may be amended from time to time.
Organization and Offering Expenses.  Any and all costs and expenses incurred by and to be paid by the Company in connection with an Offering, the formation of the Company, and including the qualification and registration of the Offering and the marketing and distribution of its Shares, including, without limitation:  total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys); expenses for printing, engraving, amending registration statements and supplementing prospectuses; mailing and distribution costs; reimbursement of bona fide due diligence expenses of broker-dealers; salaries of employees while engaged in sales activity, such as preparing supplemental sales literature; telephone and other telecommunication costs; all advertising and marketing expenses, including the costs related to investor and broker-dealer meetings; charges of transfer agents, registrars, trustees, escrow holders, depositories and experts; filing, registration and qualification fees and taxes relating to the Offering under federal and state laws; and accountants’ and attorneys’ fees.
Person.  An individual, corporation, association, business trust, estate, trust, partnership, limited liability company or other legal entity.
Property or Properties.  As the context requires, any, or all, respectively, of the Real Property acquired by the Company, either directly or indirectly (whether through Joint Ventures or other investment interests, regardless of whether the Company consolidates the financial results of these entities).
Proprietary Property.  All modeling algorithms, tools, computer programs, know-how, methodologies, processes, technologies, ideas, concepts, skills, routines, subroutines, operating instructions and other materials and aides used in performing the duties set forth in Section 2.02 

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that relate to advice regarding current and potential Assets, and all modifications, enhancements and derivative works of the foregoing.
Prospectus.  Prospectus has the meaning set forth in Section 2(a)(10) of the Securities Act, including a preliminary prospectus, an offering circular as described in Rule 253 of the General Rules and Regulations under the Securities Act or, in the case of an intrastate offering, any document by whatever name known, utilized for the purpose of offering and selling securities of the Company.
Real Property or Real Estate.  Land, rights in land (including leasehold interests), and any buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land.
REIT.  A corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing in interests in Real Estate (including fee ownership and leasehold interests) or in loans secured by Real Estate or both in accordance with Sections 856 through 860 of the Code.
Requesting Party.  Has the meaning set forth in Section 3.04 hereof.
Sale or Sales.  (i) Any transaction or series of transactions whereby:  (A) the Company directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including the lease of any Property consisting of a building only, and including any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Company directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the Company in any Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture directly or indirectly (except as described in other subsections of this definition) in which the Company as a co-venturer or partner sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including any event with respect to any Property which gives rise to insurance claims or condemnation awards; (D) the Company directly or indirectly (except as described in other subsections of this definition) sells, grants, conveys or relinquishes its interest in any Mortgage or other loan or portion thereof (including with respect to any Mortgage or other loan, all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments of amounts owed pursuant to the Mortgage or other loan) and any event with respect to a Mortgage or other loan which gives rise to a significant amount of insurance proceeds or similar awards; or (E) the Company directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any other Asset not previously described in this definition or any portion thereof, but (ii) not including any transaction or series of transactions specified in clause (i) (A) through (E) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Assets within 180 days thereafter.
Securities Act.  The Securities Act of 1933, as amended from time to time, or any successor statute thereto.  Reference to any provision of the Securities Act shall mean the 

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provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
Shares.  Any shares of the Company’s common stock, par value $0.0001 per share.
Stockholders.  The record holders of the Company’s Shares as maintained in the books and records of the Company or its transfer agent.
Termination Date.  The date of termination of this Agreement.
Texas Tax Code.  The Texas Tax Code as amended by Texas H.B. 3, 79th Leg., 3rd C.S. (2006).  Reference to any provision of the Texas Tax Code Act shall mean the provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable administrative rules as in effect from time to time.
Total Operating Expenses.  All costs and expenses paid or incurred by the Company, as determined under generally accepted accounting principles, which are in any way related to the operation of the Company or to Company business, including asset management fees paid to the Advisor or any Affiliate of the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt reserves, (v) Acquisition Expenses and any acquisition fees paid to the Advisor or any Affiliate of the Advisor, (vi) real estate commissions on the Sale of Assets, and (vii) other fees and expenses connected with the acquisition, disposition, management and ownership of real estate interests, mortgage loans or other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property).

ARTICLE II
 THE ADVISOR
2.01.    Appointment.  The Company hereby appoints the Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment.
2.02.    Duties of the Advisor.  The Advisor shall be deemed to be in a fiduciary relationship to the Company and its Stockholders.  Subject to Section 2.08, the Advisor undertakes to use its commercially reasonable efforts to present to the Company potential investment opportunities consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board.  In performing its duties, subject to the supervision of the Board and consistent with the provisions of the Company’s most recent public filings, the Articles of Incorporation and Bylaws, the Advisor shall, either directly or by 

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engaging a duly qualified and licensed Affiliate of the Advisor or other duly qualified and licensed Person:
(a)    provide the Company with research and economic and statistical data in connection with the Assets and investment policies of the Company;
(b)    manage the Company’s day-to-day operations and perform and supervise the various administrative functions reasonably necessary for the management and operations of the Company;
(c)    maintain and preserve the books and records of the Company, including stock books and records reflecting a record of the Stockholders and their ownership of the Company’s Shares;
(d)    investigate, select, and, on behalf of the Company, engage and conduct business with the duly qualified and licensed Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including duly qualified and licensed consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, mortgagors, property management companies, transfer agents and any and all agents for any of the foregoing, including duly qualified and licensed Affiliates of the Advisor, and duly qualified and licensed Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services, including but not limited to entering into contracts in the name of the Company with any of the foregoing;
(e)    consult with the officers of the Company and the Board and assist the Board in the formulation and implementation of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company;
(f)    subject to the provisions of Sections 2.02(h) and 2.03 hereof, (i) locate, analyze and select potential investments in Assets; (ii) structure and negotiate the terms and conditions of transactions pursuant to which investment in Assets will be made; (iii) make investments in Assets on behalf of the Company or the Operating Partnership in compliance with the investment objectives and policies of the Company; (iv) arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with the investments in, Assets; and (v) enter into leases of Property and service contracts for Assets with duly qualified and licensed Persons and, to the extent necessary, perform all other operational functions for the maintenance and administration of the Assets, including the servicing of Mortgages;
(g)    provide the Board with periodic reports regarding prospective investments in Assets;

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(h)    obtain the prior approval of the Board (including a majority of all Independent Directors) for any and all investments in Assets;
(i)    negotiate on behalf of the Company with banks or lenders for loans to be made to the Company, negotiate on behalf of the Company with investment banking firms and broker-dealers, and negotiate private sales of Shares and other securities of the Company or obtain loans for the Company, as and when appropriate, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company;
(j)    obtain reports (which may be prepared by or for the Advisor or its Affiliates), where appropriate, concerning the value of investments or contemplated investments of the Company in Assets;
(k)    from time to time, or at any time reasonably requested by the Board, make reports to the Board of its performance of services to the Company under this Agreement;
(l)    assist the Company in arranging for all necessary cash management services;
(m)    deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the investments in Assets;
(n)    upon request of the Company, act, or obtain the services of other duly qualified and licensed Persons to act, as attorney-in-fact or agent of the Company in making, acquiring and disposing of Assets, disbursing and collecting funds on behalf of the Company, paying the debts and fulfilling the obligations of the Company and retaining counsel or other advisors to assist in handling, prosecuting and settling any claims of the Company, including foreclosing and otherwise enforcing mortgage and other liens and security interests comprising any of the Assets;
(o)    supervise the preparation and filing and distribution of returns and reports to governmental agencies and to Stockholders and other investors and act on behalf of the Company;
(p)    provide office space, equipment and personnel as required for the performance of the foregoing services as Advisor;
(q)    assist the Company in preparing all reports and returns required by the Securities and Exchange Commission, Internal Revenue Service and other state or federal governmental agencies; and
(r)    do all things necessary to assure its ability to render the services described in this Agreement.

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2.03.    Authority of Advisor.
(a)    Pursuant to the terms of this Agreement (including the restrictions included in this Section 2.03, in Section 2.06, and in the written consent of the special committee of the Board adopted on February 16, 2014), and subject to the continuing and exclusive authority of the Board over the management of the Company, the Board hereby delegates to the Advisor the authority to (i) locate, analyze and select investment opportunities for the Company, (ii) structure the terms and conditions of transactions pursuant to which investments will be made or acquired for the Company, (iii) acquire Properties, make and acquire Mortgages and other loans and invest in other Assets in compliance with the investment objectives and policies of the Company, (iv) arrange for financing or refinancing of Assets, (v) enter into leases for the Properties and service contracts for the Assets with duly qualified and licensed non-affiliated and Affiliated Persons, including oversight of non-affiliated and Affiliated Persons that perform property management, acquisition, advisory, disposition or other services for the Company, (vi) oversee duly qualified and licensed property managers and other Persons who perform services for the Company, and (vii) arrange for, or provide, accounting and other record-keeping functions at the Asset level.
(b)    Notwithstanding the foregoing, any investment in Assets by the Company (as well as any financing acquired by the Company in connection with the investment), will require the prior approval of the Board (including a majority of the Independent Directors).
(c)    The prior approval of a majority of the Independent Directors and a majority of the Board not otherwise interested in the transaction will be required for each transaction with the Advisor or its Affiliates.
(d)    If a transaction requires approval by the Board, the Advisor will deliver to the Directors all documents required by them to properly evaluate the proposed transaction.
The Board may, at any time upon the giving of written notice to the Advisor, modify or revoke the authority set forth in this Section 2.03.  If and to the extent the Board so modifies or revokes the authority contained herein, the Advisor shall henceforth submit to the Board for prior approval the proposed transactions involving investments in Assets as thereafter require prior approval; provided, however, that the modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of the notification.
2.04.    Bank Accounts.  The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the Company and may collect and deposit into any account or accounts, and disburse from any account or accounts, any money on behalf of the Company, under the terms and conditions as the Board may approve; provided, however, that no funds of the Company shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render accountings of the collections and payments to the Board, its Audit Committee and the auditors of the Company.

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2.05.    Records; Access.  The Advisor shall maintain records of all its activities hereunder and make the records available for inspection by the Board and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours.  The Advisor shall at all reasonable times have access to the books and records of the Company.
2.06.    Limitations on Activities.  Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended, or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, the Shares or any of the Company’s securities, or otherwise not be permitted by the Articles of Incorporation, the Bylaws or the Operating Partnership Agreement, except if the action shall be ordered by the Board, in which case the Advisor shall promptly notify the Board of the Advisor’s judgment of the potential impact of the action and shall refrain from taking the action until it receives further clarification or instructions from the Board. In such event the Advisor shall have no liability for acting in accordance with the specific instructions of the Board so given.  The Advisor, its directors, officers, employees and stockholders, and the directors, officers, employees and stockholders of the Advisor’s Affiliates shall not be liable to the Company or to the Board or Stockholders for any act or omission by the Advisor, its directors, officers, employees or stockholders, or for any act or omission of any Affiliate of the Advisor, its directors, officers or employees or stockholders except as provided in Section 5.02 of this Agreement.
2.07.    Relationship with Directors.  Directors, officers and employees of the Advisor or an Affiliate of the Advisor may serve as Directors, officers or employees of the Company, except that no director, officer or employee of the Advisor or its Affiliates who also is a Director shall receive any compensation from the Company for serving as a Director other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Board.
2.08.    Other Activities of the Advisor.  Nothing herein contained shall prevent the Advisor or its Affiliates from engaging in other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, employee, or stockholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other Person.  The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein.  The Advisor shall report to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other Person.  The Advisor or its Affiliates shall promptly disclose to the Board knowledge of such condition or circumstance.  The Advisor shall inform the Board at least quarterly of the investment opportunities, of which the Advisor has knowledge that have been offered to other 

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programs with similar investment objectives sponsored by the Advisor, any Director or their respective Affiliates.  If the Advisor, any Director or any Affiliates of the foregoing have sponsored other investment programs with similar investment objectives which have investment funds available at the same time as the Company, it shall be the duty of the Board (including the Independent Directors) to adopt a reasonable method by which investments are to be allocated to the competing investment entities and to use their best efforts to apply such method fairly to the Company.
ARTICLE III

REIMBURSEMENT OF SPECIFIED COSTS
3.01.    Expenses.
(a)    The Company shall pay directly or reimburse the Advisor or its Affiliates, as directed by the Advisor, for the following costs and expenses paid or incurred by the Advisor or its Affiliates in connection with the provision of services under this Agreement for which the Advisor or any Affiliate of the Advisor does not receive a separate fee:
(i)    Acquisition Expenses;
(ii)    costs associated with insurance required in connection with the business of the Company or by the Board;
(iii)    third-party expenses connected with payments of Distributions in cash or otherwise made or caused to be made by the Company to the Stockholders;
(iv)    expenses of any third-party transfer agent for the Shares and third-party expenses of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities;
(v)    if the Board of Directors of the Company has preapproved the provision of AFD Services with respect to an Asset, the Company shall reimburse the Advisor for any Personnel Costs, Hard Costs and Business Operations Infrastructure Costs (as determined by the Advisor based on its review of the time sheets or other billing records and receipts of the Advisor Personnel) attributable to the Advisor Personnel while performing the preapproved AFD Services; 
(vi)    for the avoidance of doubt, the Company shall not reimburse the Advisor for the amount of compensation and benefits paid or accrued by the Advisor, including any payroll taxes and insurance costs, for any person who also serves as an executive officer of the Company; and
(vii)    other expenses incurred by the Advisor and approved by the Board.

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(b)    Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Section 3.01 shall be reimbursed no less than quarterly to the Advisor within 60 days after the end of each quarter.  The Advisor shall prepare a statement documenting the expenses of the Company during each quarter and shall deliver the statement to the Company within 45 days after the end of each quarter.
(c)    For avoidance of doubt, the Company is and remains responsible for paying any and all expenses of the Company, including third party audit, accounting and legal fees.
(d)    Notwithstanding anything to the contrary in this Section 3.01, with respect to investments the Company does not make (i) the Advisor will be responsible for paying all of the investment-related expenses that the Company or the Advisor incurs that are due to third parties other than Non-Refundable Payments approved in advance by the Board, and (ii) the Company shall be responsible for paying directly or reimbursing the Advisor for all Non-Refundable Payments approved in advance by the Board.
(e)    For the period from the date hereof through June 30, 2017, the Company shall pay the Advisor an Administrative Services Reimbursement in the amount equal to the lesser of (i) $1,325,000 annually (pro-rated for the period from the date hereof through June 30, 2017) and (ii) the costs of providing the Administrative Services.  For the period from July 1, 2017 through December 31, 2017, the Company shall pay the Advisor an Administrative Services Reimbursement in the amount equal to the lesser of (i) $650,000 and (ii) the costs of providing the Administrative Services.  The costs of providing the Administrative Services include, without limitation, the Fully Burdened Compensation, Hard Costs and Business Operations Infrastructure Costs attributable to Advisor Personnel (other than AFD Personnel and Advisor Personnel providing services for which the Advisor or any Affiliate of the Advisor is paid a separate fee) performing services for the Company pursuant to this Agreement.  The Administrative Services Reimbursement is payable in quarterly installments within 45 days of the end of each calendar quarter.  Notwithstanding anything to the contrary, no additional fees or expense reimbursement shall be payable to the Advisor in connection with the provision of the Administrative Services (whether or not paid to a third party) without the prior consent of the Board.
(f)    For the avoidance of doubt, the Company shall not reimburse the Advisor for any Fully Burdened Compensation, Hard Costs and Business Operations Infrastructure Costs attributable to Advisor Personnel providing services for which the Advisor or any Affiliate of the Advisor is paid a separate fee.
3.02.    Other Services.  Should the Board request that the Advisor or any director, officer or employee thereof render services for the Company other than set forth in Section 2.02, the services shall be separately compensated at the rates and in the amounts as are agreed by the Advisor and the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement.

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3.03.    Reimbursement to the Advisor.  The Company shall not reimburse the Advisor for Total Operating Expenses to the extent that Total Operating Expenses, in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income for that period of four consecutive fiscal quarters (the “2%/25% Guidelines”).  Any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company.  Reimbursement of all or any portion of the Total Operating Expenses that exceed the limitation set forth in the preceding sentence may, at the option of the Advisor, be deferred without interest and may be reimbursed in any subsequent Expense Year where such limitation would permit such reimbursement if the Total Operating Expense were incurred during such period.  Notwithstanding the foregoing, if there is an Excess Amount in any Expense Year and the Independent Directors determine that all or a portion of such excess was justified, based on unusual and nonrecurring factors which they deem sufficient, the Excess Amount may be reimbursed to the Advisor.  If the Independent Directors determine such excess was justified, then, after the end of any fiscal quarter of the Company for which there is an Excess Amount for the 12 months then ended paid to the Advisor, the Advisor, at the direction of the Independent Directors, shall cause such fact to be disclosed in the next quarterly report of the Company or in a separate writing and sent to the Stockholders within 60 days of such quarter end, together with an explanation of the factors the Independent Directors considered in determining that such Excess Amount was justified.  Such determination shall be reflected in the minutes of the meetings of the Board.  The Company will not reimburse the Advisor or its Affiliates for services for which the Advisor or its Affiliates are entitled to compensation in the form of a separate fee.  All figures used in any computation pursuant to this Section 3.03 shall be determined in accordance with generally accepted accounting principles applied on a consistent basis.
3.04.    Audit of Advisor Payments.  It is the intention of the parties hereto to conform strictly to the applicable provisions hereof as to fees, reimbursements and any other amounts (the “Advisor Payments”) to be paid to the Advisor hereunder.  However, at any time, either party shall have the right, upon reasonable written notice, to engage a separate audit, on a confidential basis, of its own and the other party’s records, books and accounts in respect of Advisor Payments to ascertain whether the Advisor Payments were properly determined and paid.  An audit may be engaged only once in any 12-month period regardless of which party engages the audit.  Any such audit shall be conducted by an independent certified public accounting firm of recognized national standing designated by the party requesting the audit (the “Requesting Party”), other than the then current auditor of its or any of its Affiliates’ financial statements, and shall be conducted during regular business hours and in such a manner so as not to interfere with the Company’s or the Advisor’s regular business activities.  The Requesting Party shall bear the costs of the audit unless the audit conclusively reveals an underpayment or overpayment of Advisor Payments adverse to the Requesting Party in an amount greater than 10% of the total amount of Advisor Payments owed for the period being inspected, in which case the other party shall bear the costs of the audit.  Any auditor who is engaged to perform an audit shall not be compensated on a contingent basis or any other basis that would tend to give the auditor an interest in the outcome of the audit, and the auditor shall perform its audit on an impartial basis and certify in writing as such.  If the audit conclusively reveals an overpayment or underpayment of Advisor Payments, the Company or the Advisor shall promptly pay to the other party the 

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amount of the overpayment or underpayment, as the case may be, without interest.  Any underpayment or overpayment under this Agreement shall not be a breach of this Agreement unless and until an audit performed in accordance with this Section 3.04 is completed and the party who may be obligated to make a payment hereunder as a result of such audit shall have failed to promptly make any required payment.
ARTICLE IV
TERM AND TERMINATION
4.01.    Term; Renewal.  Subject to Section 4.02 below, this Agreement shall continue in force for one year from the date hereof.  Thereafter, this Agreement may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.  It is the duty of the Board to evaluate the performance of the Advisor annually before renewing the Agreement, and each such renewal shall be for a term of no more than one year.
4.02.    Termination.  This Agreement will automatically terminate upon Listing.  This Agreement also may be terminated at the option of either party upon 60 days’ written notice without cause or penalty (if termination is by the Company, then the termination shall be upon the approval of a majority of the Independent Directors).  Notwithstanding the foregoing, the provisions of Section 4.03, Article V and Article VI shall continue in full force and effect and shall survive the termination or expiration of this Agreement.
4.03.    Payments to and Duties of Advisor upon Termination.
(a)    After the Termination Date, the Advisor shall not be entitled to expense reimbursement for additional services hereunder except it shall be entitled to, and shall receive from the Company within 30 days after the effective date of the termination, all unpaid reimbursements of expenses, subject to the provisions of Section 3.03 hereof, earned or related to any period up to the time of termination of this Agreement.
(b)    The Advisor shall promptly upon termination:
(i)    pay over to the Company all money collected and held for the account of the Company pursuant to this Agreement, after deducting any reimbursement for its expenses to which it is then entitled under this Agreement;
(ii)    deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board;
(iii)    deliver to the Board all assets, including the Assets, and documents of the Company then in the custody of the Advisor; and
(iv)    cooperate with the Company and take all reasonable actions requested by the Company to provide an orderly management transition.

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ARTICLE V
 
INDEMNIFICATION
5.01.    Indemnification by the Company.
(a)    The Advisor assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith to the best of its abilities and shall not be responsible for any action or inaction of the Board or the Company in following or declining to follow any advice or recommendations of the Advisor. The Advisor and its Affiliates, and the directors, officers, employees, partners, members, stockholders, other equity holders, agents and representatives of the Advisor and its Affiliates (each, an “Advisor Indemnified Party”), will not be liable to the Company, any subsidiary of the Company, the Board, the stockholders of the Company or of any of the Company’s subsidiaries, partners or members or any other Person for any acts or omissions by any Advisor Indemnified Party performed in accordance with and pursuant to this Agreement, except by reason of any act or omission constituting bad faith, willful misconduct, gross negligence, or reckless disregard of the duties under this Agreement on the part of such Advisor Indemnified Party. The Company shall, to the full extent lawful, reimburse, indemnify and hold harmless each Advisor Indemnified Party, of and from any and all expenses, losses, damages, liabilities, taxes, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees), in respect of or arising from (i) any acts or omissions of such Advisor Indemnified Party performed under this Agreement and not constituting bad faith, willful misconduct, gross negligence, or reckless disregard of duties on the part of such Advisor Indemnified Party under this Agreement and (ii) any matter, act or omission occurring prior to the date hereof relating to, in connection with, or in respect of, the Company or any of its Affiliates or any of their respective businesses, assets or properties (including any claim or litigation asserted or instigated by a third party); provided, however, that to the extent that an Advisor Indemnified Party recovers insurance proceeds with respect to any matter for which the Advisor Indemnified Party is entitled to indemnification, then the amount payable to such Advisor Indemnified Party under this Section 5.01 in respect of such matter shall be reduced by the amount of such recovered insurance proceeds. In addition, the Company shall advance funds to an Advisor Indemnified Party for reasonable legal fees and other reasonable costs and expenses incurred as a result of any claim, suit, action or proceeding for which indemnification is being sought; provided, however, that such Advisor Indemnified Party undertakes to repay such advanced funds to the Company, together with the applicable legal rate of interest thereon, in cases in which such Advisor Indemnified Party is found pursuant to a final and non-appealable order or judgment to not be entitled to indemnification.
(b)    The indemnity provided for pursuant to this Section 5.01 shall extend, without limitation, to any claims to the extent relating to any of the events or outcomes set forth in the Prospectus or in any other filing made by the Company with the Securities and Exchange Commission as possible results, outcomes or risks associated with the business and investment objectives of the Company.  Notwithstanding the provisions of this Section 5.01, the Advisor 

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shall not be entitled to indemnification or be held harmless pursuant to this Section 5.01 for any activity with respect to which the Advisor shall be required to indemnify or hold harmless the Company pursuant to Section 5.02.
5.02.    Indemnification by Advisor.  The Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees, to the extent that the liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud, misfeasance, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement, but the Advisor shall not be held responsible for any action or inaction of the Board of the Company in following or declining to follow any advice or recommendation given by the Advisor.
ARTICLE VI
 
MISCELLANEOUS
6.01.    Assignment to an Affiliate.  This Agreement and any rights, duties, liabilities and obligations hereunder and the reimbursement of expenses related thereto may be assigned by the Advisor, in whole or in part, to a duly qualified and (if required to be) licensed Affiliate of the Advisor without obtaining the approval of the Board.  Any other assignment shall be made only with the approval of a majority of the Board (including a majority of the Independent Directors).  The Advisor may assign any rights to receive expense reimbursements under this Agreement without obtaining the approval of the Board.  This Agreement shall not be assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company, in which case the successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement.  This Agreement shall be binding on successors to the Company resulting from a Change of Control or sale of all or substantially all the assets of the Company or the Operating Partnership, and shall likewise be binding upon any successor to the Advisor.
6.02.    Relationship of Advisor and Company.  The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.
6.03.    Notices.  All notices, consents, approvals, waivers or other communications (each, a “Notice”) required or permitted hereunder, except as herein otherwise specifically provided, shall be in writing and shall be:  (a) delivered personally or by commercial messenger; (b) sent via a recognized overnight courier service; (c) sent by registered or certified mail, postage pre-paid and return receipt requested; or (d) sent by facsimile transmission, provided confirmation of receipt is received by sender and the original Notice is sent or delivered contemporaneously by an additional method provided in this Section 6.03; in each case so long as such Notice is addressed to the intended recipient thereof as set forth below.  Any party may change its address specified above by giving each party Notice of such change in accordance 

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with this Section 6.03.  Any Notice shall be deemed given upon actual receipt (or refusal of receipt).
	
		
	To the Company and the Operating Partnership:
	Behringer Harvard Opportunity REIT II, Inc. 
1985 Cedar Bridge Avenue,  Suite 1 
Lakewood, New Jersey 08701
Attention: Joseph E. Teichman, Esq. 
                 General Counsel and Secretary

	With a copy to:
	Andreas K. Bremer 
17130 Dallas Parkway 
Suite 240 
Dallas, TX 75248
Robert H. Bergdolt 
DLA Piper LLP 
4141 Parklake Avenue 
Suite 300 
Raleigh, North Carolina 27612-2350

	 
	 

	To the Advisor:
	LSG Development LLC 
1985 Cedar Bridge Avenue, Suite 1 
Lakewood, New Jersey 08701
Attention: Joseph E. Teichman, Esq. 
                 General Counsel and Secretary

	With a copy to:
	Proskauer Rose LLP
Eleven Times Square
New York, New York 10036
Attention:   Peter M. Fass, Esq.
                James P. Gerkis, Esq.

6.04.    Modification.  This Agreement shall not be amended or supplemented, in whole or in part, except by an instrument in writing signed by all the parties hereto, or their respective successors or permitted assignees.
6.05.    Severability.  The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.
6.06.    Choice of Law; Venue.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, and any action brought to enforce the agreements made hereunder or any action which arises out of the relationship created hereunder shall be brought exclusively in any of the federal or state courts located in the Borough of Manhattan in New York City.

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6.07.    Entire Agreement.  This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.  
6.08.    Waiver.  Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of the right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted the waiver.
6.09.    Gender; Number.  Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.
6.10.    Headings.  The titles and headings of sections and subsections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

6.11.    Execution in Counterparts.  This Agreement may be executed with counterpart signatures or in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Management Agreement to produce or account for more than one such counterpart.
6.12.    Ownership of Proprietary Property.  The Advisor and its Affiliates have or may have a proprietary interest in the name “Lightstone”. The Advisor hereby grants to the Company, to the extent of any proprietary interest the Advisor may have in the name “Lightstone”, a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the name “Lightstone” during the term of this Agreement. The Company agrees that the Advisor and its Affiliates will have the right to approve any use by the Company of the name “Lightstone”, such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of a written request from the Advisor, cease to conduct business under or use the name “Lightstone” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the name “Lightstone” or any other word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any its Affiliates. At such time, the Company also will make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “Lightstone”. Consistent with the foregoing, it is 

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specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having the name “Lightstone” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company. Neither the Advisor nor any of its Affiliates makes any representation or warranty, express or implied, with respect to the name “Lightstone” licensed hereunder or the use thereof (including, without limitation, as to whether the use of the name “Lightstone” will be free from infringement of the intellectual property rights of third parties). Notwithstanding the preceding, the Advisor represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the name “Lightstone”.
6.13.    Treatment Under Texas Margin Tax.  For purposes of the Texas margin tax, the Advisor’s performance of the services specified in this Agreement may cause the Advisor to conduct part of the active trade or business of the Company, and the compensation specified in Article III may include both the payment of management fees and the reimbursement of specified costs incurred in the Advisor’s conduct of the active trade or business of the Company.  If Advisor were deemed to conduct part of the active trade or business of the Company for the purposes of the Texas Margin Tax, (i) Advisor and Company intend Advisor to be, and shall treat Advisor as, a “management company” within the meaning of Section 171.0001(11) of the Texas Tax Code and (ii) the Company and the Advisor will apply Sections 171.1011(m-1) and 171.1013(f)-(g) of the Texas Tax Code to the Company’s reimbursements paid to the Advisor pursuant to this Agreement of specified costs and wages and compensation.  If applicable, the Advisor and the Company further recognize and intend that (i) as a result of the fiduciary relationship created by this Agreement and acknowledged in Section 2.02, reimbursements paid to the Advisor pursuant to this Agreement are “flow-through funds” that the Advisor is mandated by law or fiduciary duty to distribute, within the meaning of Section 171.1011(f) of the Texas Tax Code, and (ii) as a result of Advisor’s contractual duties under this Agreement, certain reimbursements under this Agreement are “flow-through funds” mandated by contract to be distributed within the meaning of Section 171.1011(g) of the Texas Tax Code.  If applicable, the terms of this Agreement shall be interpreted in a manner consistent with the characterization of the Advisor as a “management company” as defined in Section 171.0001(11), and with the characterization of the reimbursements as “flow‐through funds” within the meaning of Section 171.1011(f)-(g) of the Texas Tax Code.
6.14.    Non-Solicitation.  During the period commencing on the effective date of this Agreement and ending one year following the termination of this Agreement, neither the Company nor the Operating Partnership shall, without the Advisor’s prior written consent, directly or indirectly, (a) solicit or encourage any person to leave the employment or other service of the Advisor or its affiliates or (b) hire, on behalf of the Company or any other person or entity, any person who has within the prior year left his or her employment with the Advisor or its affiliates.  During the period commencing on the effective date of this Agreement and ending one year following the termination of this Agreement, neither the Company nor the Operating Partnership shall, whether for its own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the relationship of 

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the Advisor or its affiliates with, or endeavor to entice away from the Advisor or its affiliates, any person who during the term of the Agreement is, or during the preceding one-year period was, a customer of the Advisor or its affiliates.  Notwithstanding the foregoing, the obligations of the Company under this Section 6.14 shall be waived and shall not apply in the following circumstances:
(i)    (A) the Advisor files for a voluntary petition under Title 11 of the United States Code, 11 U.S.C. §101, et seq., as amended from time to time, or any successor statute or statutes (the “Bankruptcy Code”) Code or any other Federal or state bankruptcy, receivership or insolvency law; or  (B)  an involuntary petition is filed against the Advisor under the Bankruptcy Code or any other Federal or state bankruptcy, receivership or insolvency law, and such petition or proceeding has not been dismissed or terminated within 60 days of such filing; 
(ii)    in the event the Advisor either (A) terminates this Agreement pursuant to Section 4.02 hereof because Advisor is no longer in the business of providing real estate asset management services or (B) materially breaches its obligations to provide the services set forth in Section 2.02 hereof (other than with respect to providing services with respect to acquisitions or prospective acquisitions), and such material breach continues uncured for 15 business days after the date the Company has given the Advisor written notice of such material breach pursuant to Section 6.03; or 
6.15.    Rules of Construction.  The headings herein are for convenience only, do not constitute a part of this Agreement.  The recitals constitute an integral part of this Agreement and hereby are incorporated by reference in this Section 6.15.  This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.  Whenever the words “include”, “includes”, “including” or “such as” are used in this Agreement, they shall be deemed to be followed by the words “, but not limited to,”, whether or not they are in fact followed by those words or words of like import.
 [The remainder of this page intentionally blank]

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IN WITNESS WHEREOF, the parties hereto have executed this Advisory Agreement as of the date and year first above written.
BEHRINGER HARVARD OPPORTUNITY 
REIT II, INC.
		
	By:
	/s/ Andreas K. Bremer     
Name: Andreas K. Bremer 
Title: Chairman of the Special Committee and Authorized Signatory

BEHRINGER HARVARD OPPORTUNITY OP II LP 
By:    BHO II, Inc.,
Its General Partner

		
	By:
	/s/ Terri Warren Reynolds     
Name: Terri Warren Reynolds 
Title: Senior Vice President – Legal and Secretary

[Signature Page to the Advisory Agreement]
 

LSG DEVELOPMENT LLC
		
	By:
	/s/ David Lichtenstein     
Name: David Lichtenstein 
Title: Authorized Signatory

[Signature Page to the Advisory Agreement]Exhibit

Exhibit 10.10
64029425v14

PROPERTY MANAGEMENT AND LEASING AGREEMENT
 
This PROPERTY MANAGEMENT AND LEASING AGREEMENT (this “Agreement”) is made and entered into as of February 10, 2017, among BEHRINGER HARVARD OPPORTUNITY REIT II, INC., a Maryland corporation (“BH Opportunity REIT II”), BEHRINGER HARVARD OPPORTUNITY OP II LP, a Texas limited partnership (“BH Opportunity II LP”), the Existing Owner Signatories (as defined below) and LSG-BH II PROPERTY MANAGER LLC, a Delaware limited liability company (the “Manager”). 
 
WHEREAS, BH Opportunity II LP was organized to acquire, own, operate, lease and manage real estate properties on behalf of BH Opportunity REIT II; and
 
WHEREAS, BH Opportunity II LP, BH Opportunity REIT II and Behringer Harvard Opportunity II Management Services, LLC (“Original Manager”) previously entered into that certain Amended and Restated Property Management and Leasing Agreement, dated August 13, 2008, as amended by that First Amendment to the Amended and Restated Property Management and Leasing Agreement, dated June 6, 2014,  as amended by that Second Amendment to the Amended and Restated Property Management and Leasing Agreement, dated July 25, 2016; and
 
WHEREAS, Owner desires to replace the Original Manager with the Manager, and to have the Manager manage and coordinate the leasing of certain of the real estate properties acquired by Owner under the terms and conditions set forth in this Agreement;
 
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, do hereby agree, as follows:
 
ARTICLE I
 
DEFINITIONS
 
Except as otherwise specified or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this Agreement, and the definitions of such terms are equally applicable both to the singular and plural forms thereof:
 
1.1“Advisor” means LSG-BH II Advisor LLC, a Delaware limited liability company, or its successor as advisor of BH Opportunity REIT II.

1.2“Affiliate” means, with respect to any Person, (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; or (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.

1.3“Bankruptcy Code” has the meaning set forth in Section 8.17 hereof. 

1.4“Construction Supervision Fee” has the meaning set forth in Section 5.2 hereof. 

1.5“Construction Work” has the meaning set forth in Section 5.2 hereof.

1.6“Contracts” has the meaning set forth in Section 3.2 hereof. 

1.7“Current Owners” means all existing Owners who are signatories to this Agreement as of the date of this Agreement and who are listed on Schedule A hereto. The Property owned by each Current Owner also is listed on Schedule A hereto. 

1.8Delayed Consent Owners” means all existing Owners who are signatories to this Agreement as of the date of this Agreement and who are listed on Schedule B hereto. The Property owned by each Delayed Consent Owner also is listed on Schedule B hereto.

1.9“Economic Interest Percentage” means the percentage of capital contributed directly or indirectly to the Joint Venture as compared with the total capital contributed to the Joint Venture by all of the owners of the Joint Venture as the percentage shall be calculated in good faith by the Owner.  Any in-kind contribution shall be considered in the calculation of the Economic Interest Percentage and valued at the fair market value of the contribution on the date of contribution as determined by the Owner.

1.10“Existing Owner Signatories” means Current Owners and Delayed Consent Owners. 

1.11“Gross Revenues” means all amounts actually collected as rents or other charges for the use and occupancy of the Properties, but excluding (i) interest and other investment income of Owner, and (ii) proceeds received by Owner from a sale, exchange, condemnation, eminent domain taking, casualty or other disposition of assets of Owner.

1.12“Improvements” means any buildings, structures and equipment from time to time located on the Properties and all parking and public common areas located on the Properties.

1.13“Intellectual Property Rights” means all right, title and interest, whether foreign or domestic, in and to any and all trade secrets, confidential information, patents, inventions, copyrights, service marks, trademarks, know-how, or similar intellectual property rights and all applications and rights to apply for these rights, as well as any and all similar rights and license 

-2-

rights of any type under the laws or regulations of any governmental, regulatory or judicial authority, foreign or domestic, and all renewals and extensions thereof.

1.14“Joinder” means a joinder to this Agreement which shall be in substantially the form of Exhibit B attached hereto.
 
1.15“Joint Venture” means an investment in a legal organization formed to provide for the sharing of the risks and rewards in an enterprise co-owned and operated for mutual benefit by two or more Persons and established to acquire or hold Properties.

1.16“Lease” means, unless the context otherwise requires, any lease or sublease made by Owner as landlord or by its predecessor.

1.17“Losses” has the meaning set forth in Section 6.5 hereof.

1.18“Management Fee” has the meaning set forth in Section 5.1 hereof.

1.19“Manager Indemnified Parties” has the meaning set forth in Section 6.5 hereof.

1.20“Minority JV Owners” means all existing Owners who are not signatories to this Agreement as of the date of this Agreement and who are listed on Schedule C hereto. The Property owned by each Minority JV Owner also is listed on Schedule C hereto.

1.21“Notice” has the meaning set forth in Section 8.1 hereof.

1.22“Oversight Fee” has the meaning set forth in Section 5.1 hereof.

1.23“Owner” means, individually and collectively, BH Opportunity REIT II, BH Opportunity II LP, each Existing Owner Signatory, each Minority JV Owner and any other joint venture, limited liability company or other Affiliate of BH Opportunity REIT II or BH Opportunity II LP that owns, in whole or in part, on behalf of BH Opportunity REIT II, any Property or Properties.  

1.24“Person” means an individual, corporation, association, business trust, estate, trust, partnership, limited liability company or other legal entity.

1.25“Property” means any interest in real estate now owned by Owner and any interest in real estate hereafter acquired by Owner containing income-producing improvements or on which Owner will construct income-producing improvements.

1.26“Property Amendment” means an amendment to this Agreement describing a Property and the Owner thereof and any variations to the basic terms and conditions of this Agreement with respect to the Property related thereto, which shall be in substantially the form of Exhibit A attached hereto.

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1.27“Proprietary Property” means all modeling algorithms, tools, computer programs, know-how, methodologies, processes, technologies, ideas, concepts, skills, routines, subroutines, operating instructions and other materials and aides used in performing the duties set forth in Article II that relate to management advice, services and techniques regarding current and potential Properties, and all modifications, enhancements and derivative works of the foregoing. 

1.28“Submanager” has the meaning set forth in Section 8.3 hereof. 

1.29“Texas Tax Code” means the Texas Tax Code as amended by Texas H.B. 3, 79th Leg., 3rd C.S. (2006), and reference to any provision of the Texas Tax Code Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable administrative rules as in effect from time to time.

1.30“Third-Party Leasing Agreement” has the meaning set forth in Section 8.4 hereof. 

1.31“Third-Party Management Agreement” has the meaning set forth in Section 8.5 hereof. 

ARTICLE II
 
APPOINTMENT AND STATUS OF MANAGER; SERVICES TO BE PERFORMED
 
2.1    Appointment of Manager.  

(a)Owner hereby engages and retains Manager as the manager and as tenant coordinating agent of the Properties, and Manager hereby accepts such appointment on the terms and subject to the conditions hereinafter set forth; it being understood that this Agreement shall cause Manager to be, at law, Owner’s agent upon the terms contained herein.  

(b)Owner and Manager shall execute a Property Amendment for each Property hereafter acquired setting forth a description of the Property, the individual legal Owner with respect to the Property, and any variations from the terms and conditions set forth in this Agreement with respect to the management and leasing of the Property. By executing a Property Amendment, each Owner will become a signatory and party to this Agreement with respect to such new Property. 

(c)BH Opportunity REIT II shall cause each Minority JV Owner to execute a Joinder in the form attached hereto as Exhibit B promptly after the date of this Agreement. By executing a Joinder, each Minority JV Owner will become a signatory and party to this Agreement. 
 
2.2    Treatment Under Texas Margin Tax.  For purposes of the Texas margin tax, Manager’s performance of the services specified in this Agreement may cause Manager to 

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conduct part of the active trade or business of Owner, and Manager’s compensation may include both the payment of management fees and the reimbursement of specified costs incurred in Manager’s conduct of the active trade or business of Owner.  If Manager were deemed to conduct part of the active trade or business of Owner for purposes of the Texas Margin Act, (i) Owner and Manager intend Manager to be, and shall treat Manager as, a “management company” within the meaning of Section 171.0001(11) of the Texas Tax Code and (ii) Owner and Manager will apply Sections 171.1011(m-1) and 171.1013(f)-(g) of the Texas Tax Code to Owner’s reimbursements paid to Manager pursuant to this Agreement of specified costs and allocable wages and compensation.  If applicable, Owner and Manager further recognize and intend that as a result of the relationship created by this Agreement, reimbursements paid to Manager pursuant to this Agreement include (i) “flow‐through funds” that Manager is mandated by law or fiduciary duty to distribute, within the meaning of Section 171.1011(f) of the Texas Tax Code, and (ii) “flow-through funds” that Manager is mandated by contract to distribute, within the meaning of Section 171.1011(g).  If applicable, the terms of this Agreement shall be interpreted in a manner consistent with the characterization of Manager as a “management company” as defined in Section 171.0001(11), and with the characterization of the reimbursements as “flow-through funds” within the meaning of Section 171.1011(f)-(g) of the Texas Tax Code.
 
2.3    General Duties.  Manager shall devote its commercially reasonable efforts to performing its duties hereunder to manage, operate, maintain and lease the Properties in a diligent, careful and vigilant manner.  The services of Manager are to be of scope and quality not less than those generally performed by professional property managers of other similar properties in that geographic area.  Manager shall make available to Owner the full benefit of the judgment, experience and advice of the members of Manager’s organization and staff with respect to the policies to be pursued by Owner relating to the operation and leasing of the Properties.
 
2.4    Specific Duties.  In addition to the specific authority granted to Manager by Owner pursuant to Article III of this Agreement, Manager’s duties include the following:

(a)Lease Obligations.  Manager shall perform all duties of the landlord under all Leases insofar as such duties relate to operation, maintenance and day-to-day management.  Manager shall also provide or cause to be provided, at Owner’s expense, all services normally provided to tenants of like premises, including, where applicable gas, electricity or other utilities required to be furnished to commercial tenants, repairs and maintenance necessary to preserve the Properties in their respective present conditions (normal wear and tear excepted) and for the operating efficiency thereof, and cleaning and janitorial service.  Manager shall arrange for and supervise the performance of all installations and improvements in space leased to any tenant that are either expressly required under the terms of the Lease of such space or that are customarily provided to commercial tenants.
 
(b)Maintenance.  Manager shall cause the Properties to be maintained in a manner consistent with, or substantially similar to, the manner in which similar rental properties in that geographic region are maintained.  Manager’s duties and supervision 

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in this respect shall include cleaning the interior and the exterior of the Improvements and making or supervising the repair, alterations and decoration of the Improvements, subject to and in strict compliance with this Agreement and the Leases.  Construction activities undertaken by Manager, if any, shall be limited to activities related to the management, operation, maintenance, and leasing of the Properties (e.g., repairs, renovations and leasehold improvements), including planning and coordinating the construction of any tenant-paid improvements.
 
(c)Leasing Functions.  Manager shall coordinate the leasing of the Properties and shall negotiate and use its commercially reasonable efforts to secure executed Leases from what Manager believes are qualified tenants, and to execute same on behalf of Owner, if requested, for available space in the Properties, such Leases to be in form and on terms approved by Owner and Manager.  Manager shall be responsible for hiring all duly qualified and licensed leasing agents, as necessary for the leasing of the Properties, and for otherwise overseeing and managing the leasing process on behalf of Owner.
 
(d)Notice of Violations.  Manager shall forward to Owner promptly upon receipt all written notices of violation or other written notices from any governmental authority, and board of fire underwriters or any insurance company, and shall make such recommendations regarding compliance with any such notice as Manager believes is appropriate.
 
(e)Controlling Agreements.  Manager has received copies of (and will be provided by Owner with copies of future) articles of incorporation, agreements of limited partnership, joint venture agreements, operating agreements, loan agreements, deeds of trust or mortgages and similar agreements or instruments, each as may be amended from time to time, of Owner, as applicable (the “Controlling Agreements”), and is and will be familiar with the terms thereof.  Manager shall use reasonable care to avoid any act or omission that, in the performance of its duties hereunder, shall in any way conflict with the terms of Controlling Agreements.
 
(f)Branding.  Manager shall maintain and administer for Owner the standards of branding established with respect to all billboards, signage and uniforms as such standards are currently in existence for the existing Properties.
 
(g)Risk Management.  Manager shall provide to Owner risk management services, including the following:  assisting and providing ways to mitigate, minimize, control and transfer risk through the prudent use of risk management, insurance programs and recommendations of safety and loss control techniques; selecting and managing insurance brokers and service products; preparing underwriting data for use in marketing insurance programs; negotiating and placing insurance and related services; serving as liaison for insurance brokers and monitoring insurance premium invoices for accuracy; managing and settling loss control and insurance claims; consulting and coordinating  insurance requirements for financing Properties; reviewing 

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and monitoring sub-contractor certificates of insurance; and consulting regarding insurance verbiage requirements for leases and contracts.
 
(h)Real Estate Tax Management.  Manager shall provide to Owner tax management services with respect to the Properties, including the following:  coordinating payment of real estate taxes; contesting real estate taxes, as Manager deems appropriate; accounting for all bills to be processed at any given installment, and following up on missing bills; data entry of tax amounts and equalized values when available; providing copies of documents as requested (including following up on cancelled checks, monitoring payment by third parties, communicating with interested parties and forwarding tax bills to purchasers and other parties as necessary).
 
(i)Technology Use and Support.  Manager shall utilize the software and technology platforms that it believes are appropriate in connection with fulfilling its duties under this Agreement.  In addition, Manager shall provide technical support and maintenance with respect to any technology used in the maintenance, operation, management and leasing of the Properties.
 
2.5     The Account.  Manager shall establish and maintain a separate checking account (the “Account”) into which all rent and other monies collected from tenants shall be deposited.  All monies deposited from time to time in the Account shall be deemed to be trust funds and shall be and remain the property of Owner and shall be withdrawn and disbursed by Manager for the account of Owner only as expressly permitted by this Agreement.  No monies collected by Manager on Owner’s behalf shall be commingled with funds of Manager.  The Account shall be maintained, and monies shall be deposited therein and withdrawn therefrom, in accordance with the following:
 
(a)All sums received from rents and other income from the Properties shall be promptly deposited by Manager in the Account.  Manager may endorse any and all checks received in connection with the operation of any Property and drawn to the order of Owner, and Owner shall, upon request by Manager, furnish Manager’s depository with an appropriate authorization for Manager to make such endorsement.  Manager shall have the right to designate two or more persons who shall be authorized to draw against the Account, but only for purposes authorized by this Agreement.
 
(b)All sums due to Manager hereunder, whether for compensation, reimbursement for expenditures, or otherwise, as herein provided, shall be a charge against the operating revenues of the Properties and shall be paid or withdrawn by Manager from the Account prior to the making of any other disbursements therefrom.
 
(c)By the 15th day after the end of each month, Manager shall forward to Owner all monies contained in the Account other than a reasonable reserve and any other amounts otherwise provided in the budget for the relevant property which shall remain in the Account.  Manager shall maintain such other accounts as shall be deemed 

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appropriate by Owner, including any account in respect of a particular Property or as is requirement under any loan agreement.
 
2.6    Accounting, Records and Reports.
 
(a)Records.  Manager shall maintain all office records and books of account and shall record therein, and keep copies of, each invoice received from services, work and supplies ordered in connection with the maintenance and operation of the Properties.  Such records shall be maintained on a double entry basis.  Owner and persons designated by Owner shall at all reasonable time have access to and the right to audit and make independent examinations of such records, books and accounts and all vouchers, files and all other material pertaining to the Properties and this Agreement, all of which Manager agrees to keep safe, available and separate from any records not pertaining to the Properties, at a place recommended by Manager and approved by Owner.
 
(b)Monthly Reports.  On or before the 15th day after the end of each month during the term of this Agreement, Manager shall prepare and submit to Owner the following reports and statements with respect to each Property:
 
	
		
	(i)
	rental collection record;

	 
	 

	(ii)
	monthly operating statement;

	 
	 

	(iii)
	copies of cash disbursements ledger entries for such period, if requested by Owner upon 15 days’ written notice;

	 
	 

	(iv)
	copies of cash receipts ledger entries for such period, if requested by Owner upon 15 days’ written notice;

	 
	 

	(v)
	the original copies of all contracts entered into by Manager on behalf of Owner during such period, if requested by Owner upon 15 days’ written notice; and

	 
	 

	(vi)
	copies of ledger entries for such period relating to security deposits maintained by Manager, if requested by Owner upon 15 days’ written notice.

 
(c)Budgets and Leasing Plans.  Not later than November 15 of each calendar year, Manager shall prepare and submit to Owner for its approval an operating budget and a marketing and leasing plan on each Property for the calendar year immediately following such submission (each, an “Annual Budget”).  In connection with any acquisition of a Property by Owner, Manager shall prepare an Annual Budget for the remainder of the calendar year.  Each Annual Budget shall incorporate financial models and analysis prepared by Manager with respect to that property.  Each Annual Budget 

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shall be in the form of the budget and plan approved by Owner prior to the date thereof.  As often as reasonably necessary during the period covered by any such budget, Manager may submit to Owner for its approval an updated Annual Budget incorporating any changes as shall be necessary to reflect cost over-runs and the like during that period.  If Owner does not disapprove any proposed Annual Budget within 30 days after receipt thereof by Owner, the Annual Budget shall be deemed approved.  If Owner shall disapprove any proposed Annual Budget, it shall so notify Manager within said 30-day period and explain the reasons therefor.  If Owner disapproves of any proposed Annual Budget, Manager shall submit a revised Annual Budget, as applicable, within 10 days of receipt of the notice of disapproval, and Owner shall have 10 days to provide notice to Manager if it disapproves of the revised Annual Budget.  If a proposed Annual Budget is not approved by December 31 of any calendar year,  Manager shall operate the applicable Property pursuant to the proposed Annual Budget for the following calendar year with respect to those portions approved by Owner and in accordance with the prior year’s Annual Budget with respect to those portions not approved by Owner (with the exception of (i) non-recurring expenditures and capital expenditures which shall be deemed removed from the prior year’s Annual Budget, and (ii) actual increases for real estate taxes, which shall be deemed added to the prior year’s Annual Budget).

(d)Additional Costs.  Manager will not incur any costs other than those included in, and only to the extent provided for (subject to reasonable deviation for changes in market costs), in any Annual Budget except for:
 
	
		
	(i)
	tenant improvements and real estate commissions required under a Lease;

	 
	 

	(ii)
	maintenance or repair costs under $5,000 per Property;

	 
	 

	(iii)
	costs incurred in emergency situations in which action is immediately necessary for the preservation or safety of a Property, or for the safety of occupants or other persons (or to avoid the suspension of any necessary service at a Property);

	 
	 

	(iv)
	expenditures for real estate taxes and assessment; and

	 
	 

	(v)
	maintenance supplies calling for an aggregate purchase price less than $25,000 per annum for all Properties.

 
Annual Budgets prepared by Manager shall be for planning and informational purposes only, and Manager shall have no liability to Owner for any failure to meet any Annual Budget.  However, Manager will use commercially reasonable efforts to operate within the approved Annual Budget.
 
(e)    Legal Requirements.  Manager shall execute and file when due all forms, reports and returns required by law relating to the employment of its personnel.  Manager 

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shall be responsible for notifying Owner in the event Manager receives notice that any Improvement on a Property or any equipment therein does not comply with the requirements of any statute, ordinance, law or regulation of any governmental body or of any public authority or official thereof having or claiming to have jurisdiction thereover.  Manager shall promptly forward to Owner any complaints, warnings, notices or summonses received by it relating to such matters.  Owner represents that to the best of its knowledge each of its Properties and any equipment thereon will upon acquisition by Owner comply with all such requirements.  Owner authorizes Manager to disclose the ownership of each Property by Owner to any such officials.
 
2.7    Dealings with Advisor.  Unless Owner specifically informs Manager to the contrary, Advisor may perform any of the obligations or exercise any of the rights of Owner under this Agreement.
 
ARTICLE III
 
AUTHORITY GRANTED TO MANAGER AND CERTAIN OWNER OBLIGATIONS
 
3.1    Authority As To Tenants, Etc.  Owner agrees and does hereby give Manager the following exclusive authority and powers (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name or Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters):
 
(a)to advertise each Property or any part thereof and to display signs thereon, as permitted by law and subject to the terms and conditions of the leases;
 
(b)to pay all expenses of leasing each Property, including newspaper and other advertising, signage, banners, brochures, referral commissions, leasing commissions, finder’s fees and salaries, bonuses and other compensation of duly qualified and licensed leasing personnel responsible for the leasing of each Property;
 
(c)to cause references of prospective tenants to be investigated, it being understood and agreed by the parties hereto that Manager does not guarantee the creditworthiness or collectability of accounts receivable from tenants, users or lessees; and to negotiate new Leases and renewals and cancellations of existing Leases that shall be subject to Manager obtaining Owner’s approval;
 
(d)to collect from tenants all or any of the following:  a late rent administrative charge, a non-negotiable check charge, credit report fee, a subleasing administrative charge or broker’s commission;
 
(e)to terminate tenancies and to sign and serve in the name of Owner of each Property such notices as are deemed necessary by Manager;
 

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(f)to institute and prosecute actions to evict tenants and to recover possession of each Property or portions thereof; and
 
(g)with Owner’s authorization, to sue for and in the name of Owner and recover rent and other sums due; and to settle, compromise, and release such actions or suits, or reinstate such tenancies.  All expenses of litigation, including attorneys’ fees, filing fees and court costs that Manager shall incur in connection with the collecting of rent and other sums, or to recover possession of any Property or any portion thereof, shall be deemed to be an operational expense of each Property.  Manager and Owner shall concur on the selection of the attorneys to handle such litigation.
 
3.2    Operational Authority.  Owner agrees and does hereby give Manager the following exclusive authority and powers (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name of Owner entered into by Manager as Owner’s authorized agent, and, unless otherwise provided herein, Owner shall assume all expenses in connection with such matters):
 
(a)to hire, supervise, discharge, and pay all labor required for the operation and maintenance and leasing of each Property including but not limited to on-site personnel, managers, assistant managers, leasing consultants, engineers, janitors, maintenance supervisors and other employees required for the operation and maintenance of each Property, including personnel spending a portion of their working hours (to be charged on a pro rata basis) at each Property.  Any personnel hired by Manager to maintain, operate and lease the Properties shall be the employees or independent contractors of Manager and not of Owner.  Manager shall use due care in selecting and supervising these employees or independent contractors.  With respect to these employees, Manager shall be responsible for maintaining timekeeping records, processing regular payroll, filing payroll tax reports on a timely basis, ensuring compliance with wage and tax laws and tracking benefit hours and garnishments and child support orders.  All expenses of these employees’ employment shall be deemed operational expenses of the Property.
 
(b)to make or cause to be made all ordinary repairs and replacements necessary to preserve each Property in its present condition and for the operating efficiency thereof and all alterations required to comply with Lease requirements;
 
(c)to prepare, negotiate, enter into and administer any Leases;
 
(d)to prepare, negotiate and enter into, as Manager of each Property, (i) contracts for all items on budgets that have been approved by Owner, (ii) any repairs for items not exceeding $5,000, (iii) any emergency services, (iv) appropriate service agreements and labor agreements for normal operation of each Property with duly qualified and licensed Persons, which have terms not to exceed three years, (v) agreements for all budgeted maintenance, minor alterations, and utility services, including, but not limited to, electricity, gas, fuel, water, telephone, window washing, 

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scavenger service, landscaping, snow removal, pest exterminating, decorating and legal services, in connection with the Leases and relating to each Property, and (vi) any other service agreements as Manager may consider appropriate (collectively, the “Contracts”); and
 
(e)to purchase supplies and pay all bills in accordance with the Annual Budget or as permitted under Sections 2.6(d)(ii) and 2.6(d)(v).
 
Manager shall use commercially reasonable efforts to obtain the foregoing services and utilities for each Property on terms consistent with, or substantially similar to, those available to similar rental properties in the geographic region in which the Property is located.  Owner hereby appoints Manager as Owner’s authorized Manager for the purpose of executing, as Manager for said Owner, all Contracts.  Manager shall secure the approval of, and execution of appropriate Contracts by, Owner for any non-budgeted and non-emergency/contingency capital items, alterations or other expenditures in excess of $5,000 for any one item, securing for each item at least three written bids, if practicable, or providing evidence satisfactory to Owner that the Contract amount is lower than industry standard pricing in the geographic region in which the Property is located, from responsible contractors.  Manager shall have the right from time to time during the term hereof, to contract with and make purchases from duly qualified and licensed Affiliates of Manager, provided that contract rates and prices are no less favorable to Owner than those available from unaffiliated third parties.  Manager may at any time and from time to time request and receive the prior written authorization of Owner of the Property of any one or more purchases or other expenditures, notwithstanding that Manager may otherwise be authorized hereunder to make such purchases or expenditures.
 
3.3    Rent and Other Collections.  Owner agrees and does hereby give Manager the exclusive authority and powers (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name or Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters) to collect rents, assessments and other items, including tenant payments for real estate taxes, property liability and other insurance, damages and repairs, common area maintenance, tax reduction fees and all other tenant reimbursements, administrative charges, proceeds of rental interruption insurance, parking fees, income from coin operated machines and other miscellaneous income, due or to become due and give receipts therefor and to deposit all such Gross Revenue collected hereunder in the Account.  Manager shall also have the exclusive authority to collect and handle tenants’ security deposits, including the right to apply such security deposits to unpaid rent, and to comply, on behalf of Owner of each Property, with applicable state or local laws concerning security deposits and interest thereon, if any.
 
3.4    Advances.  Manager shall not be required to advance any monies for the care or management of any Property, but Owner agrees to advance all monies necessary therefor, provided that any advanced amounts have been budgeted in the Annual Budget.  If Manager shall elect to advance any money in connection with a Property, Owner agrees to reimburse Manager within 30 days and hereby authorizes Manager to deduct such advances from any monies due Owner.  In connection with any insured losses or damages relating to any Property, Manager 

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shall have the exclusive authority to handle all steps necessary regarding any such claim; provided that Manager will not make any adjustments or settlements in excess of $10,000 without Owner’s prior written consent.
 
3.5    Payment of Expenses.  Owner agrees and does hereby give Manager the exclusive authority and power (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name or Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters) to pay all expenses of each Property, including utility and water charges, secure rent and assessments, from the Gross Revenue collected in accordance with Section 3.3, from the Account.  All bills shall be paid by Manager within the time required to obtain discounts, if any. Owner may from time to time request that Manager forward certain bills to Owner promptly after receipt, and Manager shall comply with any such request.  All expenses shall be billed at net cost (i.e., less all rebates, commissions, discounts and allowances, however designated).
 
It is understood that the Gross Revenue will be used first to pay the compensation to Manager as contained in Article V, then operational expenses and then any mortgage indebtedness, including real estate tax and insurance impounds, but only as directed by Owner in writing and only if sufficient Gross Revenue is available for such payments.  Nothing in this Agreement shall be interpreted in such a manner as to obligate Manager to pay from Gross Revenue, any expenses incurred by Owner prior to the commencement of this Agreement, except to the extent Owner advances additional funds to pay such expenses.
 
3.6    Environmental Matters.  Owner hereby warrants and represents to Manager that, to the best of Owner’s knowledge, no Property, upon acquisition by Owner, nor any part thereof, will be used to treat, deposit, store, dispose of or place any hazardous substance that may subject Manager to liability or claims under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C.A. Section 9607) or any constitutional provision, statute, ordinance, law or regulation of any governmental body or of any order or ruling of any public authority or official thereof, having or claiming to have jurisdiction thereover.
 
3.7    Legal Status of Properties.  Owner represents that, to the best of its knowledge, each Property and any equipment thereon does comply, or when acquired by Owner, will comply, with all legal requirements and authorizes Manager to disclose the identity of the owner of each Property to any such officials.  In the event it is alleged or charged that any Improvement or any equipment on a Property or any act or failure to act by Owner with respect to the Property or the sale, rental, or other disposition thereof fails to comply with, or is in violation of, any of the requirements of any constitutional provision, statute, ordinance, law, or regulation of any governmental body or any order or ruling of any public authority or official thereof having or claiming to have jurisdiction thereover, and Manager, in its sole and absolute discretion, considers that the action or position of Owner, with respect thereto may result in damage or liability to Manager, Manager shall have the right to cancel this Agreement at any time by written notice to Owner of its election so to do, which cancellation shall be effective upon the service of such notice.  Such cancellation shall not release the indemnities of Owner set forth in 

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this Agreement and shall not terminate any liability or obligation of Owner to Manager for any payment, reimbursement, or other sum of money then due and payable to Manager hereunder.
 
3.8    Extraordinary Payments.  Owner agrees to give adequate advance written notice to Manager if Owner desires that Manager make any extraordinary payment, out of Gross Revenue, to the extent funds are available after the payment of Manager’s compensation as provided for herein and all operational expenses, of mortgage indebtedness, general taxes, special assessments or insurance premiums.
 
ARTICLE IV
 
EXPENSES
 
4.1    Owner’s Expenses.  Except as otherwise specifically provided, all costs and expenses incurred hereunder by Manager in fulfilling its duties to Owner shall be for the account of and on behalf of Owner.  Such costs and expenses shall include the wages and salaries and other employee-related expenses of all on-site and off-site employees of Manager who are engaged in the operation, management, maintenance and leasing or access control of the Properties, including taxes, insurance and benefits relating to such employees, costs of technology related to the Properties, including computers, telephone systems and property management and accounting software and any upgrades or conversions thereof, and legal, travel and other out-of-pocket expenses that are directly related to the management of specific Properties.  All costs and expenses for which Owner is responsible under this Management  Agreement shall be paid by Manager out of the Account.  In the event the Account does not contain sufficient funds to pay all said expenses, Owner promptly shall fund all sums necessary to meet such additional costs and expenses.
 
4.2    Manager’s Expenses.  Manager shall, out of its own funds, pay all of its general overhead and administrative expenses.
 
ARTICLE V
 
MANAGER’S COMPENSATION
 
5.1    Management Fees.  Owner shall pay Manager property management fees in an amount equal to four percent (4.0%) of Gross Revenues (the "Management Fee") on a monthly basis from the income received from the Properties over the term of this Agreement. Certain of these Properties may be owned by Joint Ventures. When the Manager is not paid by the Joint Venture directly in respect of its services, the applicable Management Fee or Oversight Fee (as defined below) to be paid by the Owner will be calculated by multiplying the Management Fee by the Economic Interest Percentage owned directly or indirectly by the Owner in that Property. In the event that Owner contracts directly with a third-party property manager not affiliated with the Manager in respect of a Property for which the Owner, in its sole discretion, has the ability to appoint or hire the Manager, Owner shall pay Manager an oversight fee ("Oversight Fee") equal to one-half of one percent (0.5%) of Gross Revenues. In no event will Owner pay both a 

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Management Fee and an Oversight Fee to Manager with respect to any Property. If Manager subcontracts its responsibilities hereunder to another Person, Manager shall be solely responsible for the payment to the applicable third party. The Management Fee includes the reimbursement of the specified cost incurred by the Manager of engaging another person or entity to perform Manager's responsibilities hereunder; provided, however, that Manager shall be responsible for payment of all amounts to these third parties. Nothing herein shall prevent Manager from entering fee-splitting arrangements with third parties with respect to the Management Fee.
 
5.2    Construction Supervision Fees.  Manager shall supervise construction performed by or on behalf of Owner with respect to the Properties, including capital repairs and improvements, major building reconstruction and tenant improvements (collectively, “Construction Work”).  In the event that Manager supervises the Construction Work with respect to a Property, Owner shall pay Manager a construction supervision fee equal to an amount not greater than five percent (5%) of all hard construction costs incurred in connection with the Construction Work (the “Construction Supervision Fee”).  Owner shall pay the Construction Supervision Fee at the same time it makes payments to any third party contractors in respect of any Construction Work at that Property.
 
5.3    Leasing Fees.  In addition to the compensation paid to Manager under Section 5.1, Manager shall be entitled to receive a separate fee for the Leases of new tenants and renewals of Leases with existing tenants in an amount not to exceed the fee customarily charged in arm’s length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area.
 
5.4    Audit Adjustment.  If any audit of the records, books or accounts relating to the Properties discloses an overpayment or underpayment of Management Fees, Owner or Manager shall promptly pay to the other party the amount of such overpayment or underpayment, as the case may be.  If such audit discloses an overpayment of Management Fees for any fiscal year of more than the correct Management Fees for such fiscal year, Manager shall bear the cost of such audit.
ARTICLE VI
 
INSURANCE AND INDEMNIFICATION
 
6.1    Insurance to be Carried.
 
(a)Manager shall obtain and keep in full force and effect insurance on the Properties against such hazards as Owner and Manager shall deem appropriate, but in any event insurance sufficient to comply with the Leases and Controlling Agreements shall be maintained. All liability policies shall provide sufficient insurance satisfactory to both Owner and Manager and shall contain waivers of subrogation for the benefit of Manager.
 
(b)Manager shall obtain and keep in full force and effect, in accordance with the laws of the state in which each Property is located, workers’ compensation and employer’s liability insurance applicable to and covering all employees of Manager at the 

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Properties, and Manager shall furnish Owner certificates of insurers evidencing that such insurance is in effect.  If any work under this Agreement is subcontracted as permitted herein, Manager shall include in each subcontract a provision that the subcontractor shall also furnish Owner with such a certificate.
 
6.2    Insurance Expenses.  Premiums and other expenses of such insurance, as well as any applicable payments in respect of deductibles shall be borne by Owner.
 
6.3    Cooperation with Insurers.  Manager shall cooperate with and provide reasonable access to the Properties to representatives of insurance companies and insurance brokers or agents with respect to insurance that is in effect or for which application has been made.  Manager shall use its commercially reasonable efforts to comply with all requirements of insurers.
 
6.4    Accidents and Claims.  Manager shall promptly investigate and shall report in detail to Owner all accidents, claims for damage relating to ownership, operation or maintenance of the Properties, and any damage or destruction to the Properties and the estimated costs of repair thereof, and shall prepare for approval by Owner all reports required by an insurance company in connection with any such accident, claim, damage, or destruction.  Such reports shall be given to Owner promptly, and any report not so given within 10 days after the occurrence of any such accident, claim, damage or destruction shall be noted in the monthly operating statement delivered to Owner pursuant to Section 2.6(b)(ii).  Manager is authorized to settle any claim against an insurance company arising out of any policy and, in connection with such claim, to execute proofs of loss and adjustments of loss and to collect and receipt for loss proceeds.
 
6.5    Indemnification.
 
(a)    Indemnification of Manager. Owner shall indemnify, defend, protect, save and hold harmless Manager, its Affiliates and their respective stockholders, officers, directors, employees, managers, agents, representatives, successors and assigns (collectively, the “Manager Indemnified Parties”), from and against any and all claims, causes of action, demands, suits, proceedings, loss, judgments, damage, awards, liens, fines, costs, attorneys’ fees and expenses, of every kind and nature whatsoever (collectively, “Losses”) in connection with or in any way related to (i) any Contract, (ii) each Property, including any past, current or future allegations regarding treatment, depositing, storage, disposal or placement by any Person other than Manager of hazardous substances on the Property, and from liability for damage to each Property and injuries to or death of any person whomsoever, and damage to Property, (iii) the willful misconduct, gross negligence or unlawful acts (such unlawfulness having been adjudicated by a court of proper jurisdiction) of Owner, or the failure of Owner to correct any present or future violation or alleged violation of any and all present or future laws, ordinances, statutes or regulations of any public authority or official thereof, having or claiming to have jurisdiction thereover, of which it has actual notice, and (iv) any matter, act or omission occurring prior to the date hereof relating to, in connection with, or in respect of, Owner or any of its Affiliates or any of their respective businesses, assets or 

-16-

properties (including any claim or litigation asserted or instigated by a third party); provided, however, that the indemnification and exculpation shall not extend to any such Losses arising out of the willful misconduct, gross negligence or unlawful acts (the unlawfulness having been adjudicated by a court of proper jurisdiction) of Manager, its agents, servants, or employees; provided further, however, that to the extent that Manager recovers insurance proceeds with respect to any matter for which a Manager Indemnified Party is entitled to indemnification, then the amount payable to such Manager Indemnified Party under this Section 6.5 in respect of such matter shall be reduced by the amount of such recovered insurance proceeds.  Manager shall not be liable for any error of judgment or for any mistake of fact or law, or for any thing that it may do or refrain from doing, except in cases of willful misconduct, gross negligence or unlawful acts (the unlawfulness having been adjudicated by a court of proper jurisdiction). In addition, Owner shall advance funds to any Manager Indemnified Party for reasonable legal fees and other reasonable costs and expenses incurred as a result of any claim, suit, action or proceeding for which indemnification is being sought; provided, however, that such Manager Indemnified Party undertakes to repay the advanced funds to Owner, together with the applicable legal rate of interest thereon, in cases in which such Manager Indemnified Party is found pursuant to a final and non-appealable order or judgment to not be entitled to indemnification.
 
(b)Indemnification of Owner.  Manager shall indemnify, defend, protect, save and hold harmless Owner, its Affiliates and their respective stockholders, officers, directors, employees, managers, agents, representatives, successors and assigns, from any and all claims or liability for any injury or damage to any person or property whatsoever for which Manager is responsible occurring in, on, or about the Properties, including the Improvements, when the injury or damage shall be caused by the willful misconduct, gross negligence or unlawful acts (the unlawfulness having been adjudicated by a court of proper jurisdiction) of Manager, its agents, servants or employees, except to the extent that Owner recovers insurance proceeds with respect to such matter.
 
 
ARTICLE VII
 
TERM AND TERMINATION
 
7.1    Term.  This Agreement shall commence on the date first written above and shall continue until the fifth anniversary of such date and thereafter for successive five-year renewal periods, unless on or before one year prior to the date last above mentioned or on or before one year prior to the expiration of any such renewal period, either party shall notify the other party in writing that it elects to terminate this Agreement, in which case this Agreement shall be thereby terminated on said last mentioned date.  In addition, and notwithstanding the foregoing, Owner may terminate this Agreement at any time upon delivery of written notice to Manager not less than 30 days prior to the effective date of termination, in the event of (and only in the event of) a showing by Owner of willful misconduct, gross negligence, or deliberate malfeasance by Manager in the performance of Manager’s duties hereunder. In addition, any party may terminate 

-17-

this Agreement immediately upon the occurrence of a decree or order rendered by a court having jurisdiction (a) adjudging Manager as bankrupt or insolvent, (b) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition or similar relief for Manager under the federal bankruptcy laws or any similar applicable law or practice, or (c) appointing a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of Manager or a substantial part of the property of Manager, or for the winding up or liquidation of its affairs. Any termination of this Agreement shall not affect (a) any rights or obligations accrued to any party prior to termination (subject to any offsetting claims for damages), including payment of property management fees earned to the date of termination, or (b) the provisions of Sections 6.5, 8.4 and 8.5, which shall survive any such termination.
  
7.2     Manager’s Obligations Upon Termination.  Upon the termination of this Agreement, Manager shall cooperate with Owner and take all reasonable steps requested by Owner to make an orderly transition of the Manager’s services, including without limitation:
 
(a)Manager shall deliver to Owner, or its designee, all books and records with respect to the applicable Property or Properties.
 
(b)Manager shall transfer and assign to Owner, or its designee, all service contracts and personal property relating to or used in the operation and maintenance of the applicable Property or Properties, except personal property paid for and owned by Manager.  Manager shall also, for a period of 60 days immediately following the date of such termination, make itself available to consult with and advise Owner, or its designee, regarding the operation, maintenance and leasing of the applicable Property or Properties.
 
(c)Manager shall render to Owner an accounting of all funds of Owner in its possession and shall deliver to Owner a statement of all Management Fees claimed to be due to Manager and shall cause funds of Owner held by Manager relating to the applicable Property or Properties to be paid to Owner or its designee.
 
(d)All provisions of this Agreement that require Manager to protect, defend, save, hold and indemnify or to reimburse Owner shall survive any expiration or termination of this Agreement and, if Owner is or becomes involved in any claim, proceeding or litigation by reason of having been Owner, such provisions shall apply as if this Agreement were still in effect.
 
7.3    Owner’s Obligations Upon Termination.  Upon the termination of this Agreement, Owner shall cooperate with Manager and take all reasonable steps to make an orderly transition of the Manager’s services to Owner, including without limitation:
 
(a)Owner shall pay or reimburse Manager for any sums of money due it under this Agreement for services and expenses prior to termination of this Agreement.  The parties understand and agree that Manager may withhold funds for 60 days after the end of the month in which this Agreement is terminated to pay bills previously incurred but not yet invoiced and to close accounts. Should the funds withheld be insufficient to 

-18-

meet the obligation of Manager to pay bills previously incurred, Owner will, upon demand, advance sufficient funds to Manager to ensure fulfillment of Manager’s obligation to do so, within 10 days of receipt of notice and an itemization of such unpaid bills.
 
(b)Owner shall assume in writing all obligations under all Contracts entered into by Manager, on behalf of Owner of the Property, upon the termination of this Agreement.
 
(c)All provisions of this Agreement that require Owner to protect, defend, save, hold and indemnify or to reimburse Manager shall survive any expiration or termination of this Agreement and, if Manager is or becomes involved in any claim, proceeding or litigation by reason of having been Manager, such provisions shall apply as if this Agreement were still in effect.

7.4    Effectiveness.  This Agreement shall be effective as of the date hereof; provided, however, that with respect to each Delayed Consent Owner, this Agreement shall be effective with respect to such Delayed Consent Owner as of the date the applicable approval or consent pertaining to the Property or Properties owned by such Delayed Consent Owner has been received or waived by Manager; provided further, however, that with respect to each Minority JV Owner, this Agreement shall be effective with respect to such Minority JV Owner as of the date such Minority JV Owner executes a Joinder in the form attached hereto as Exhibit B. 

ARTICLE VIII
 
MISCELLANEOUS

 8.1    Notices. All notices, consents, approvals, waivers or other communications (each, a “Notice”) required or permitted hereunder, except as herein otherwise specifically provided, shall be in writing and shall be:  (a) delivered personally or by commercial messenger; (b) sent via a recognized overnight courier service; (c) sent by registered or certified mail, postage pre-paid and return receipt requested; or (d) sent by facsimile transmission, provided confirmation of receipt is received by sender and the original Notice is sent or delivered contemporaneously by an additional method provided in this Section 8.1; in each case so long as such Notice is addressed to the intended recipient thereof as set forth below.  Any party may change its address specified above by giving each party Notice of such change in accordance with this Section 8.1. Any Notice shall be deemed given upon actual receipt (or refusal of receipt).

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	Owner:
	Behringer Harvard Opportunity OP II LP

	 
	c/o Behringer Harvard Opportunity REIT II, Inc.

	 
	1985 Cedar Bridge Avenue, Suite 1 
Lakewood, New Jersey 08701

	 
	Attention: Joseph E. Teichman, Esq. 
                 General Counsel and Secretary

	 
	 

	With a copy to:
	Andreas K. Bremer 
17130 Dallas Parkway 
Suite 240 
Dallas, TX 75248
Robert H. Bergdolt 
DLA Piper LLP 
4141 Parklake Avenue 
Suite 300 
Raleigh, North Carolina 27612-2350

	 
	 

	Manager:
	LSG-BH II Property Manager LLC 
1985 Cedar Bridge Avenue, Suite 1 
Lakewood, New Jersey 08701

	 
	Attention: Joseph E. Teichman, Esq. 
                 General Counsel and Secretary

 
	
			
	With a copy to:
	Proskauer Rose LLP

	 
	Eleven Times Square

	 
	New York, New York 10036

	 
	Attention:
	Peter M. Fass, Esq.

	 
	 
	James P. Gerkis, Esq.

8.2    Governing Law; Venue.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, and any action brought to enforce the agreements made hereunder or any action which arises out of the relationship created hereunder shall be brought exclusively in any of the federal or state courts located in the Borough of Manhattan in New York City.
 
8.3    Assignment.  Manager may assign or delegate partially or in full its duties and rights under this Agreement and the fees and compensation related thereto to a duly qualified and licensed Affiliate of Manager without the approval of Owner.  Any other assignment or delegation by Manager of its duties and rights under this Agreement may be made only with the prior written consent of Owner.  Owner acknowledges and agrees that any or all of the duties of Manager as contained herein may be assigned or delegated by Manager and performed by a duly 

-20-

qualified and licensed Person (“Submanager”) with whom Manager contracts for the purpose of performing such duties.  Owner specifically grants Manager the authority to enter into such a contract with a Submanager; provided that, unless Owner otherwise agrees in writing with such Submanager, Owner shall have no liability or responsibility to any such Submanager for the payment of the Submanager’s fee or for reimbursement to the Submanager of its expenses or to indemnify the Submanager in any manner for any matter; and provided further that Manager shall require such Submanager to agree, in the written agreement setting forth the duties and obligations of such Submanager, to indemnify Owner for all Losses incurred by Owner as a result of the willful misconduct or gross negligence of the Submanager, except that such indemnity shall not be required to the extent that Owner recovers issuance proceeds with respect to such matter.  Any contract entered into between Manager and a Submanager pursuant to this Section 8.3 shall be consistent with the provisions of this Agreement, except to the extent Owner otherwise specifically agrees in writing.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.
  
8.4    Third-Party Leasing Services.  Manager acknowledges that from time to time Owner may determine that it is in the best interests of Owner to retain a third party to provide certain leasing services with respect to certain Properties and to compensate such third party for such leasing services.  Upon the prior written consent of Manager, Owner shall have the authority to enter into such a contract for leasing services with a duly qualified and licensed third party (a “Third-Party Leasing Agreement”); provided, however, that Manager shall have no liability or responsibility to Owner for any of the duties and obligations undertaken by such party, and Owner agrees to indemnify the Manager Indemnified Parties for all Losses incurred by Manager as a result of acts of such third party pursuant to the Third-Party Leasing Agreement.  To the extent that leasing services are specifically required to be performed by a third party pursuant to such Third-Party Leasing Agreement, Manager shall have no obligation to perform such leasing services and Owner shall have no obligation to Manager for leasing fees pursuant to Section 5.3.
 
8.5    Third-Party Management Services.  Manager acknowledges that from time to time Owner may acquire interests in Properties in which Owner does not control the determination of the party that is engaged to provide property management and other services to be provided by Manager with respect to all Properties acquired by Owner hereunder.  Upon the prior written consent of Manager, Owner shall have the authority to acquire such interests in Properties for which a duly qualified and licensed third party provides some or all of the services otherwise required to be performed by Manager hereunder (a “Third-Party Management Agreement”); provided, however, that Manager shall have no liability or responsibility to Owner for any of the duties and obligations undertaken by such third party, and Owner shall indemnify and hold harmless the Manager Indemnified Parties, from and against all Losses incurred by any of them as a result of the acts of such third party pursuant to the Third-Party Management Agreement.  To the extent that property management and other services are specifically required to be performed by a third party pursuant to such Third-Party Management Agreement, Manager shall have no obligation to perform such services and Owner shall have no obligation to Manager for compensation for such services pursuant to Article V.
 

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8.6    No Waiver.  The failure of Owner to seek redress for violation or to insist upon the strict performance of any covenant or condition of this Agreement shall not constitute a waiver thereof for the future.
 
8.7    Amendments.  Except as this Agreement is amended by a Property Amendment or a Joinder, this Agreement may be amended or supplemented only by an instrument in writing signed by the parties hereto.
 
8.8    Headings.  The headings of the various subdivisions of this Agreement are for reference only and shall not define or limit any of the terms or provisions hereof.
 
8.9    Counterparts.  This Agreement may be executed with counterpart signatures or in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.
 
8.10    Entire Agreement.  This Agreement (including the Property Amendments and Joinders) contains the entire understanding and all agreements between Owner and Manager respecting the management of the Properties.  There are no representations, agreements, arrangements or understandings, oral or written, between Owner and Manager relating to the management of the Properties that are not fully expressed herein.
 
8.11    Disputes.  If there shall be a dispute between Owner and Manager relating to this Agreement resulting in litigation, the prevailing party in such litigation shall be entitled to recover from the other party to such litigation such amount as the court shall fix as reasonable attorneys’ fees.
 
8.12    Activities of Manager.  The obligations of Manager pursuant to the terms and provisions of this Agreement shall not be construed to preclude Manager from engaging in other activities or business ventures, whether or not such other activities or ventures are in competition with Owner or the business of Owner.
 
8.13    Independent Contractor.  Manager and Owner shall not be construed as joint venturers or partners of each other pursuant to this Agreement, and neither shall have the power to bind or obligate the other except as set forth herein.  In all respects, the status of Manager to Owner under this Agreement is that of an independent contractor.
 
8.14     No Third-Party Rights.  Nothing expressed or referred to in this Agreement will be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement, except such rights as shall inure to any Person entitled to indemnification under Section 6.5, 8.4 or 8.5 and to a successor or permitted assignee pursuant to Section 8.3.
 
8.15    Ownership of Proprietary Property.  The Manager retains ownership of and reserves all Intellectual Property Rights in the Proprietary Property.  To the extent that Owner has 

-22-

or obtains any claim to any right, title or interest in the Proprietary Property, including without limitation in any suggestions, enhancements or contributions that Owner may provide regarding the Proprietary Property, Owner hereby assigns and transfers exclusively to the Manager all right, title and interest, including all Intellectual Property Rights, free and clear of any liens, encumbrances or licenses in favor of Owner or any other party, in and to the Proprietary Property.  In addition, at the Manager’s expense, Owner will perform any acts that may be deemed desirable by the Manager to evidence more fully the transfer of ownership of right, title and interest in the Proprietary Property to the Manager, including but not limited to the execution of any instruments or documents now or hereafter requested by the Manager to perfect, defend or confirm the assignment described herein, in a form determined by the Manager.
 
8.16    The Lightstone Name. The Manager and its Affiliates have or may have a proprietary interest in the name “Lightstone”.  The Manager hereby grants to Owner, to the extent of any proprietary interest the Manager may have in the name “Lightstone”, a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the name “Lightstone” during the term of this Agreement. Owner agrees that the Manager and its Affiliates will have the right to approve any use by Owner of the name “Lightstone”, such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time Owner ceases to retain the Manager or one of its Affiliates to perform services for Owner, Owner will, promptly after receipt of a written request from the Manager, cease to conduct business under or use the name “Lightstone” or any derivative thereof and Owner shall change its name and the names of any of its subsidiaries to a name that does not contain the name “Lightstone” or any other word or words that might, in the reasonable discretion of the Manager, be susceptible of indication of some form of relationship between Owner and the Manager or any its Affiliates. At such time, Owner also will make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “Lightstone”.  Consistent with the foregoing, it is specifically recognized that the Manager or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having the name “Lightstone” as a part of their name, all without the need for any consent (and without the right to object thereto) by Owner. Neither the Manager nor any of its Affiliates makes any representation or warranty, express or implied, with respect to the name “Lightstone” licensed hereunder or the use thereof (including, without limitation, as to whether the use of the name “Lightstone” will be free from infringement of the intellectual property rights of third parties). Notwithstanding the preceding, the Manager represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the name “Lightstone”.

8.17    Non-Solicitation.  During the period commencing on the date on which this Agreement is entered into and ending one year following the termination of this Agreement, Owner shall not, without Manager’s prior written consent, directly or indirectly, (a) solicit or encourage any person to leave the employment or other service of Manager or its affiliates, or (b) hire, on behalf of Owner or any other person or entity, any person who has within the prior year left his or her employment with Manager or its affiliates.  During the period commencing on the date hereof through and ending one year following the termination of this Agreement, Owner 

-23-

shall not, whether for its own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the relationship of Manager or its affiliates with, or endeavor to entice away from Manager or its affiliates, any person who during the term of the Agreement is, or during the preceding one-year period was, a customer of Manager its affiliates.  Notwithstanding the foregoing, the obligations of Owner under this section shall be waived and shall not apply in the following circumstances:

(i)      (A) Manager files for a voluntary petition under Title 11 of the United States Code, 11 U.S.C. §101, et seq., as amended from time to time, or any successor statute or statutes (the “Bankruptcy Code”) Code or any other Federal or state bankruptcy, receivership or insolvency law; or  (B)  an involuntary petition is filed against Manager under the Bankruptcy Code or any other Federal or state bankruptcy, receivership or insolvency law, and such petition or proceeding has not been dismissed or terminated within 60 days of such filing; or
 
(ii)       in the event Manager either (A) terminates this Agreement pursuant to Section 7.1 because Manager is no longer in the business of providing property management services, or (B) materially breaches its obligations to provide the services set forth herein, and such material breach continues uncured for 15 business days after the date Owner has given Manager written notice of such material breach pursuant to Section 8.1.

8.18    Rules of Construction.  The headings herein are for convenience only, do not constitute a part of this Agreement.  The recitals constitute an integral part of this Agreement and hereby are incorporated by reference in this Section 8.18.  This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.  Whenever the words “include”, “includes”, “including” or “such as” are used in this Agreement, they shall be deemed to be followed by the words “, but not limited to,”, whether or not they are in fact followed by those words or words of like import.

 
[The remainder of this page has been intentionally left blank.]
 
 

-24-

IN WITNESS WHEREOF, the parties have executed this Property Management and Leasing Agreement as of the date first above written.
 
BEHRINGER HARVARD OPPORTUNITY
REIT II, INC.

By:     /s/ Andreas K. Bremer        
Name: Andreas K. Bremer
Title:       Chairman of the Special Committee and Authorized Signatory

BEHRINGER HARVARD OPPORTUNITY 
OP II, LP

By:    BHO II, Inc., its general partner

By:     /s/ Thomas P. Kennedy    
Name: Thomas P. Kennedy
Title:       President

[Signature Page to the Property Management and Leasing Agreement]

EAST\140686412.1 

LSG-BH II Property Manager LLC

By:     /s/ David Lichtenstein    
Name: David Lichtenstein
Title:       Authorized Signatory

[Signature Page to the Property Management and Leasing Agreement]

-27-

GARDENS MEDICAL PAVILION, LLC

By:     /s/ Thomas P. Kennedy    

Name:     Thomas P. Kennedy
Title:       President

22 EXCHANGE STUDENT HOUSING, LLC 

By:     22 Exchange, LLC
its Sole Member

By:     /s/ Thomas P. Kennedy    

Name:     Thomas P. Kennedy
Title:  President

SL PARKSIDE APTS, LLC

By:    SL Parkside Holding, LLC
its Managing Member

By:     /s/ Thomas P. Kennedy    

Name: Thomas P. Kennedy
Title:       President

 

[Signature Page to the Property Management and Leasing Agreement]

SCHEDULE A

Current Owners and Properties

	
		
	Owner
	Property

	Gardens Medical Pavilion, LLC
	Gardens Medical Pavilion

	 
	 

 SCHEDULE B

Delayed Consent Owners and Properties

	
		
	Owner
	Property

	22 Exchange Student Housing, LLC
	22 Exchange

	SL Parkside Apts, LLC
	Parkside Apartments

	 
	 

 SCHEDULE C

Minority JV Owners and Properties

	
		
	Owner
	Property

	Behringer Harvard Arbors, LLC
	Arbors Harbor Town

	Behringer Harvard Margate, LLC
	Lakes of Margate

	Behringer Harvard/Scion UGA, LLC
	River Club and the Townhomes at Rover Club

A-1
 

EXHIBIT A
Form of Property Amendment

Reference is hereby made to the Property Management and Leasing Agreement dated as of [   ], 2017, among BEHRINGER HARVARD OPPORTUNITY REIT II, INC., a Maryland corporation, BEHRINGER HARVARD OPPORTUNITY OP II LP, a Texas limited partnership, the Existing Owner Signatories (as defined therein) and LSG-BH II PROPERTY MANAGER LLC, a Delaware limited liability company and the other parties thereto (as the same may be amended or amended and restated from time to time, the “Management Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Management Agreement.
 
	
					
	Property Description:
	 

	 
	 

	 

	 
	 

	Legal Name of Owner:
	 

	 

	Jurisdiction of Organization/Incorporation:
	 

	 

	Services to be Provided (if other than in Management Agreement):

	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 

	Alterations to basic terms and conditions of Management Agreement (if any):

	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

 

A-1
 

The undersigned hereby agrees that upon the execution of this Property Amendment, it shall become a party to the Management Agreement as an Owner and shall be fully bound by, and subject to, all the agreements, covenants, terms and conditions of the Management Agreement as an Owner as though an original party thereto.

	
						
	 Manager:
	LSG-BH II Property Manager LLC

	 
	 

	 
	 

	 
	 

	 
	By:
	 

	 
	 

	 
	 

	 
	 

	 
	 

	Owner:
	 
	 

	 
	 

	 
	 

	 
	By:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

 

A-2

EXHIBIT B
Form of Joinder

Reference is hereby made to the Property Management and Leasing Agreement dated as of [   ], 2017, among BEHRINGER HARVARD OPPORTUNITY REIT II, INC., a Maryland corporation, BEHRINGER HARVARD OPPORTUNITY OP II LP, a Texas limited partnership, the Existing Owner Signatories (as defined therein) and LSG-BH II PROPERTY MANAGER LLC, a Delaware limited liability company and the other parties thereto (as the same may be amended or amended and restated from time to time, the “Management Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Management Agreement.
 
 
The undersigned hereby agrees that upon the execution of this Joinder, it shall become a party to the Management Agreement as an Owner and shall be fully bound by, and subject to, all the agreements, covenants, terms and conditions of the Management Agreement as an Owner as though an original party thereto.

	
						
	 Manager:
	LSG-BH II Property Manager LLC

	 
	 

	 
	 

	 
	 

	 
	By:
	 

	 
	 

	 
	 

	 
	 

	 
	 

	Owner:
	 
	 

	 
	 

	 
	 

	 
	By:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

 

B-1

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