Document:

Exhibit
10.1

    

    2006
      NON-QUALIFIED STOCK AND OPTION COMPENSATION PLAN

    

    1. Purpose
      of Plan

    

    1.1 This
      2006
      NON-QUALIFIED STOCK
      AND
      OPTION COMPENSATION PLAN (the “Plan”) of Elephant Talk Communications, Inc., a
      California corporation (the “Company”) for employees, directors, officers,
      consultants, advisors and other persons associated with the Company, is intended
      to advance the best interests of the Company by providing those persons who
      have
      a substantial responsibility for its management and growth with additional
      incentive and by increasing their proprietary interest in the success of the
      Company, thereby encouraging them to maintain their relationships with the
      Company. Further, the availability and offering of options and common stock
      under the Plan supports and increases the Company's ability to attract and
      retain individuals of exceptional talent upon whom, in large measure, the
      sustained progress, growth and profitability of the Company
      depends.

    

    2. Definitions

    

    2.1 For
      Plan
      purposes, except where the context might clearly indicate otherwise, the
      following terms shall have the meanings set forth below:

    

    “Board”
      shall mean the Board of Directors of the Company.

    

    “Committee”
      shall mean the Compensation Committee, or such other committee appointed by
      the
      Board, which shall be designated by the Board to administer the Plan, or the
      Board if no committees have been established. The Committee shall be composed
      of
one
      or
      more persons
      as from
      time to time are appointed to serve by the Board. Each member of the Committee,
      while serving as such, shall be a disinterested person with the meaning of
      Rule
      16b-3 promulgated under the Securities Exchange Act of 1934.

    

    “Common
      Shares” shall mean the Company's Common Shares, $0.001 par value per share, or,
      in the event that the outstanding Common Shares are hereafter changed into
      or
      exchanged for different shares of securities of the Company, such other shares
      or securities.

    

    “Company”
      shall mean
      Elephant
      Talk Communications, Inc., a California corporation
      (“ETLK”), and any parent or subsidiary corporation of ETLK, as such terms are
      defined in Sections 425(e) and 425(f), respectively, of the Code.

    

    “Fair
      Market Value” shall mean, with respect to the date a given option is granted or
      exercised, the average of the highest and lowest reported sales prices of the
      Common Shares, as reported by such responsible reporting service as the
      Committee may select, or if there were not transactions in the Common Shares
      on
      such day, then the last preceding day on which transactions took place. The
      above withstanding, the Committee may determine the Fair Market Value in such
      other manner as it may deem more equitable for Plan purposes or as is required
      by applicable laws or regulations.

    

    “Optionee”
      shall mean an employee of the company who has been granted one or more options
      under the Plan.

    

    “Common
      Stock” shall mean shares of common stock which are issued by the Company
      pursuant to Section 5, below.

    

    “Common
      Stockholder” means
      the
      employee of, consultant to, or director of the Company or other person to whom
      shares of Common Stock are issued pursuant to this Plan.

    

    “Common
      Stock Agreement” means an agreement executed by a Common Stockholder and the
      Company as contemplated by Section 5, below, which imposes on the shares of
      Common Stock held by the Common Stockholder such restrictions as the Board
      or
      Committee deem appropriate.

    

    “Stock
      Option” or “Non-Qualified Stock Option” or “NQSO” shall mean a stock option
      granted pursuant to the terms of the Plan.

    

    “Stock
      Option Agreement” shall mean the agreement between the Company and the Optionee
      under which the Optionee may purchase Common Shares hereunder.

    

    
      
        
        

      

      
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    3. Administration
      of the Plan

    

    3.1 The
      Committee shall administer the Plan and accordingly, it shall have full power
      to
      grant Stock Options and Common Stock, construe and interpret the Plan, establish
      rules and regulations and perform all other acts, including the delegation
      of
      administrative responsibilities, it believes reasonable and proper.

    

    3.2 The
      determination of those eligible to receive Stock Options and Common Stock,
      and
      the amount, type and timing of each grant and the terms and conditions of the
      respective stock option agreements and Common Stock Agreements shall rest in
      the
      sole discretion of the Committee, subject to the provisions of the
      Plan.

    

    3.3 The
      Committee may cancel any Stock Options awarded under the Plan if an Optionee
      conducts himself in a manner which the Committee determines to be inimical
      to
      the best interest of the Company, as set forth more fully in paragraph 8 of
      Article 11 of the Plan.

    

    3.4 The
      Board, or the Committee, may correct any defect, supply any omission or
      reconcile any inconsistency in the Plan, or in any granted Stock Option, in
      the
      manner and to the extent it shall deem necessary to carry it into
      effect.

    

    3.5 Any
      decision made, or action taken, by the Committee or the Board arising out of
      or
      in connection with the interpretation and administration of the Plan shall
      be
      final and conclusive.

    

    3.6 The
      Committee shall, in its discretion, have the power to issue Common Shares to
      holders of non-qualified incentive stock option agreements which are outstanding
      as of the date hereof , pursuant to the terms of those option
      agreements.

    

    3.7 Meetings
      of the Committee shall be held at such times and places as shall be determined
      by the Committee. A majority of the members of the Committee shall constitute
      a
      quorum for the transaction of business, and the vote of a majority of those
      members present at any meeting shall decide any question brought before that
      meeting. In addition, the Committee may take any action otherwise proper under
      the Plan by the affirmative vote, taken without a meeting, of a majority of
      its
      members.

    

    3.8 No
      member
      of the Committee shall be liable for any act or omission of any other member
      of
      the Committee or for any act or omission on his own part, including, but not
      limited to, the exercise of any power or discretion given to him under the
      Plan,
      except those resulting from his own gross negligence or willful
      misconduct.

    

    3.9 The
      Company, through its management, shall supply full and timely information to
      the
      Committee on all matters relating to the eligibility of Optionees, their duties
      and performance, and current information on any Optionee's death, retirement,
      disability or other termination of association with the Company, and such other
      pertinent information as the Committee may require. The Company shall furnish
      the Committee with such clerical and other assistance as is necessary in the
      performance of its duties hereunder.

    

    4. Shares
      Subject to the Plan

    

    4.1 The
      total
      number of shares of the Company available for grants of Stock Options and Common
      Stock under the Plan shall be 25,000,000 Common Shares, subject to adjustment
      in
      accordance with Article 7 of the Plan, which shares may be either authorized
      but
      unissued or reacquired Common Shares of the Company.

    

    4.2 If
      a
      Stock Option or portion thereof shall expire or terminate for any reason without
      having been exercised in full, the unpurchased shares covered by such NQSO
      shall
      be available for future grants of Stock Options.

    

    
      
        
        

      

      
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    5. Award
      Of Common Stock

    

    5.1 The
      Board
      or Committee from time to time, in its absolute discretion, may (a) award Common
      Stock to employees of, consultants to, and directors of the Company, and such
      other persons as the Board or Committee may select, and (b) permit Holders
      of
      Options to exercise such Options prior to full vesting therein and hold the
      Common Shares issued upon exercise of the Option as Common Stock. In either
      such
      event, the owner of such Common Stock shall hold such stock subject to such
      vesting schedule as the Board or Committee may impose or such vesting schedule
      to which the Option was subject, as determined in the discretion of the Board
      or
      Committee.

    

    5.2 Common
      Stock shall be issued only pursuant to a Common Stock Agreement, which shall
      be
      executed by the Common Stockholder and the Company and which shall contain
      such
      terms and conditions as the Board or Committee shall determine consistent with
      this Plan, including such restrictions on transfer as are imposed by the Common
      Stock Agreement.

    

    5.3 Upon
      delivery of the shares of Common Stock to the Common Stockholder, below, the
      Common Stockholder shall have, unless otherwise provided by the Board or
      Committee, all the rights of a stockholder with respect to said shares, subject
      to the restrictions in the Common Stock Agreement, including the right to
      receive all dividends and other distributions paid or made with respect to
      the
      Common Stock.

    

    5.4. Notwithstanding
      anything in this Plan or any Common Stock Agreement to the contrary, no Common
      Stockholders may sell or otherwise transfer, whether or not for value, any
      of
      the Common Stock prior to the date on which the Common Stockholder is vested
      therein.

    

    5.5 All
      shares of Common Stock issued under this Plan (including any shares of Common
      Stock and other securities issued with respect to the shares of Common Stock
      as
      a result of stock dividends, stock splits or similar changes in the capital
      structure of the Company) shall be subject to such restrictions as the Board
      or
      Committee shall provide, which restrictions may include, without limitation,
      restrictions concerning voting rights, transferability of the Common Stock
      and
      restrictions based on duration of employment with the Company, Company
      performance and individual performance; provided that the Board or Committee
      may, on such terms and conditions as it may determine to be appropriate, remove
      any or all of such restric-tions. Common Stock may not be sold or encumbered
      until all applicable restrictions have terminated or expire. The restrictions,
      if any, imposed by the Board or Committee or the Board under this Section 5
      need
      not be identical for all Common Stock and the imposition of any restrictions
      with respect to any Common Stock shall not require the imposition of the same
      or
      any other restrictions with respect to any other Common Stock.

    

    5.6 Each
      Common Stock Agreement shall provide that the Company shall have the right
      to
      repurchase from the Common Stockholder the unvested Common Stock upon a
      termination of employment, termination of directorship or termination of a
      consultancy arrangement, as applicable, at a cash price per share equal to
      the
      purchase price paid by the Common Stockholder for such Common
      Stock.

    

    5.7 In
      the
      discretion of the Board or Committee, the Common Stock Agreement may provide
      that the Company shall have the a right of first refusal with respect to the
      Common Stock and a right to repurchase the vested Common Stock upon a
      termination of the Common Stockholder's employment with the Company, the
      termination of the Common Stockholder's consulting arrangement with the Company,
      the termination of the Common Stockholder's service on the Company's Board,
      or
      such other events as the Board or Committee may deem appropriate.

    

    5.8 The
      Board
      or Committee shall cause a legend or legends to be placed on certificates
      representing shares of Common Stock that are subject to restrictions under
      Common Stock Agreements, which legend or legends shall make appropriate
      reference to the applicable restrictions.

    

    
      
        
        

      

      
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    6. Stock
      Option Terms and Conditions

    

    6.1 Consistent
      with the Plan's purpose, Stock Options may be granted to non-employee directors
      of the Company or other persons who are performing or who have been engaged
      to
      perform services of special importance to the management, operation or
      development of the Company.

    

    6.2 All
      Stock
      Options granted under the Plan shall be evidenced by agreements which shall
      be
      subject to applicable provisions of the Plan, and such other provisions as
      the
      Committee may adopt, including the provisions set forth in paragraphs 2 through
      11 of this Section 6.

    

    6.3 All
      Stock
      Options granted hereunder must be granted within ten years from the earlier
      of
      the date of this Plan is adopted or approved by the Company's
      shareholders.

    

    6.4 No
      Stock
      Option granted to any employee or 10% Shareholder shall be exercisable after
      the
      expiration of ten years from the date such NQSO is granted. The Committee,
      in
      its discretion, may provide that an Option shall be exercisable during such
      ten
      year period or during any lesser period of time.

    

    The
      Committee may establish installment exercise terms for a Stock Option such
      that
      the NQSO becomes fully exercisable in a series of cumulating portions. If an
      Optionee shall not, in any given installment period, purchase all the Common
      Shares which such Optionee is entitled to purchase within such installment
      period, such Optionee's right to purchase any Common Shares not purchased in
      such installment period shall continue until the expiration or sooner
      termination of such NQSO. The Committee may also accelerate the exercise of
      any
      NQSO. However, no NQSO, or any portion thereof, may be exercisable until thirty
      (30) days following date of grant (“30-Day Holding Period.”).

    

    6.5 A
      Stock
      Option, or portion thereof, shall be exercised by delivery of (i) a written
      notice of exercise of the Company specifying the number of common shares to
      be
      purchased, and (ii) payment of the full price of such Common Shares, as fully
      set forth in paragraph 6 of this Section 6.

    

    No
      NQSO
      or installment thereof shall be exercisable except with respect to whole shares,
      and fractional share interests shall be disregarded. Not less than 100 Common
      Shares may be purchased at one time unless the number purchased is the total
      number at the time available for purchase under the NQSO. Until the Common
      Shares represented by an exercised NQSO are issued to an Optionee, he shall
      have
      none of the rights of a shareholder.

    

    6.6 The
      exercise price of a Stock Option, or portion thereof, may be paid:

    

    A. In
      United
      States dollars, in cash or by cashier's check, certified check, bank draft
      or
      money order, payable to the order of the Company in an amount equal to the
      option price; or

    

    B. At
      the
      discretion of the Committee, through the delivery of fully paid and
      nonassessable Common Shares, with an aggregate Fair Market Value on the date
      the
      NQSO is exercised equal to the option price, provided such tendered Shares
      have
      been owned by the Optionee for at least one year prior to such exercise;
      or

    

    C.
       By
      a
      combination of both A and B above; or

     

    D. A
      Stock
      Option, or a portion thereof, may
      also
      be exercised by means of a “cashless exercise” in which Optionee shall be
      entitled to receive a certificate for the number of Common Shares equal to
      the
      quotient obtained by dividing [(A-B) (X)] by (A), where:

    (A)
      = the
      closing price on the trading day preceding the date of such
      election;

    (B)
      = the
      exercise price of a Stock Option, as adjusted; and 

    
      	 	
              (X)
                =

            	
              the
                number of Common Shares issuable upon exercise of a Stock Option
                in
                accordance with the terms of the Stock
                Option.

            

    

    The
      Committee shall determine acceptable methods for tendering Common Shares as
      payment upon exercise of a Stock Option and may impose such limitations and
      prohibitions on the use of Common Shares to exercise an NQSO as it deems
      appropriate.

    

    
      
        
        

      

      
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      6.7 With
      the
      Optionee's consent, the Committee may cancel any Stock Option issued under
      this
      Plan and issue a new NQSO to such Optionee.

    

    6.8 Except
      by
      will or the laws of descent and distribution, no right or interest in any Stock
      Option granted under the Plan shall be assignable or transferable, and no right
      or interest of any Optionee shall be liable for, or subject to, any lien,
      obligation or liability of the Optionee. Stock Options shall be exercisable
      during the Optionee's lifetime only by the Optionee or the duly appointed legal
      representative of an incompetent Optionee.

    

    6.9 If
      the
      Optionee shall die while associated with the Company or within three months
      after termination of such association, the personal representative or
      administrator of the Optionee's estate or the person(s) to whom an NQSO granted
      hereunder shall have been validly transferred by such personal representative
      or
      administrator pursuant to the Optionee's will or the laws of descent and
      distribution, shall have the right to exercise the NQSO for one year after
      the
      date of the Optionee's death, to the extent (i) such NQSO was exercisable on
      the
      date of such termination of employment by death, and (ii) such NQSO was not
      exercised, and (iii) the exercise period may not be extended beyond the
      expiration of the term of the Option.

    

    No
      transfer of a Stock Option by the will of an Optionee or by the laws of descent
      and distribution shall be effective to bind the Company unless the Company
      shall
      have been furnished with written notice thereof and an authenticated copy of
      the
      will and/or such other evidence as the Committee may deem necessary to establish
      the validity of the transfer and the acceptance by the transferee or transferee
      of the terms and conditions by such Stock Option.

    

    In
      the
      event of death following termination of the Optionee's association with the
      Company while any portion of an NQSO remains exercisable, the Committee, in
      its
      discretion, may provide for an extension of the exercise period of up to one
      year after the Optionee's death but not beyond the expiration of the term of
      the
      Stock Option.

    

    6.10 Any
      Optionee who disposes of Common Shares acquired on the exercise of a NQSO by
      sale or exchange either (i) within two years after the date of the grant of
      the
      NQSO under which the stock was acquired, or (ii) within one year after the
      acquisition of such Shares, shall notify the Company of such disposition and
      of
      the amount realized upon such disposition. The transfer of Common Shares may
      also be Common by applicable provisions of the Securities Act of 1933, as
      amended.

    

    7. Adjustments
      or Changes in Capitalization

    

    7.1 In
      the
      event that the outstanding Common Shares of the Company are hereafter changed
      into or exchanged for a different number or kind of shares or other securities
      of the Company by reason of merger, consolidation, other reorganization,
      recapitalization, reclassification, combination of shares, stock split-up or
      stock dividend:

    

    A. Prompt,
      proportionate, equitable, lawful and adequate adjustment shall be made of the
      aggregate number and kind of shares subject to Stock Options which may be
      granted under the Plan, such that the Optionee shall have the right to purchase
      such Common Shares as may be issued in exchange for the Common Shares
      purchasable on exercise of the NQSO had such merger, consolidation, other
      reorganization, recapitalization, reclassification, combination of shares,
      stock
      split-up or stock dividend not taken place;

    

    B. Rights
      under unexercised Stock Options or portions thereof granted prior to any such
      change, both as to the number or kind of shares and the exercise price per
      share, shall be adjusted appropriately, provided that such adjustments shall
      be
      made without change in the total exercise price applicable to the unexercised
      portion of such NQSO's but by an adjustment in the price for each share covered
      by such NQSO's; or

    

    C. Upon
      any
      dissolution or liquidation of the Company or any merger or combination in which
      the Company is not a surviving corporation, each outstanding Stock Option
      granted hereunder shall terminate, but the Optionee shall have the right,
      immediately prior to such dissolution, liquidation, merger or combination,
      to
      exercise his NQSO in whole or in part, to the extent that it shall not have
      been
      exercised, without regard to any installment exercise provisions in such
      NQSO.

     

    
      
        
        

      

      
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      7.2 The
      foregoing adjustments and the manner of application of the foregoing provisions
      shall be determined solely by the Committee, whose determination as to what
      adjustments shall be made and the extent thereof, shall be final, binding and
      conclusive. No fractional Shares shall be issued under the Plan on account
      of
      any such adjustments.

    

    8. Merger,
      Consolidation or Tender Offer

    

    8.1 If
      the
      Company shall be a party to a binding agreement to any merger, consolidation
      or
      reorganization or sale of substantially all the assets of the Company, each
      outstanding Stock Option shall pertain and apply to the securities and/or
      property which a shareholder of the number of Common Shares of the Company
      subject to the NQSO would be entitled to receive pursuant to such merger,
      consolidation or reorganization or sale of assets.

    

    8.2 In
      the
      event that:

    

    A. Any
      person other than the Company shall acquire more than 20% of the Common Shares
      of the Company through a tender offer, exchange offer or otherwise;

    

    B. A
      change
      in the “control” of the Company occurs, as such term is defined in Rule 405
      under the Securities Act of 1933;

    

    C. There
      shall be a sale of all or substantially all of the assets of the
      Company;

    

    any
      then
      outstanding Stock Option held by an Optionee, who is deemed by the Committee
      to
      be a statutory officer (“Insider”) for purposes of Section 16 of the Securities
      Exchange Act of 1934 shall be entitled to receive, subject to any action by
      the
      Committee revoking such an entitlement as provided for below, in lieu of
      exercise of such Stock Option, to the extent that it is then exercisable, a
      cash
      payment in an amount equal to the difference between the aggregate exercise
      price of such NQSO, or portion thereof, and, (i) in the event of an offer or
      similar event, the final offer price per share paid for Common Shares, or such
      lower price as the Committee may determine to conform an option to preserve
      its
      Stock Option status, times the number of Common Shares covered by the NQSO
      or
      portion thereof, or (ii) in the case of an event covered by B or C above, the
      aggregate Fair Market Value of the Common Shares covered by the Stock Option,
      as
      determined by the Committee at such time.

    

    8.3 Any
      payment which the Company is required to make pursuant to paragraph 8.2 of
      this
      Section 8 shall be made within 15 business days, following the event which
      results in the Optionee's right to such payment. In the event of a tender offer
      in which fewer than all the shares which are validly tendered in compliance
      with
      such offer are purchased or exchanged, then only that portion of the shares
      covered by an NQSO as results from multiplying such shares by a fraction, the
      numerator of which is the number of Common Shares acquired pursuant to the
      offer
      and the denominator of which is the number of Common Shares tendered in
      compliance with such offer shall be used to determine the payment thereupon.
      To
      the extent that all or any portion of a Stock Option shall be affected by this
      provision, all or such portion of the NQSO shall be terminated.

    

    8.4 Notwithstanding
      paragraphs 8.1 and 8.3 of this Section 8, the Committee may, by unanimous vote
      and resolution, unilaterally revoke the benefits of the above provisions;
      provided, however, that such vote is taken no later than ten business days
      following public announcement of the intent of an offer or the change of
      control, whichever occurs earlier.

    

    9. Amendment
      and Termination of Plan

    

    9.1 The
      Board
      may at any time, and from time to time, suspend or terminate the Plan in whole
      or in part or amend it from time to time in such respects as the Board may
      deem
      appropriate and in the best interest of the Company.

    

    9.2 No
      amendment, suspension or termination of this Plan shall, without the Optionee's
      consent, alter or impair any of the rights or obligations under any Stock Option
      theretofore granted to him under the Plan.

     

    
      
        
        

      

      
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    9.3 The
      Board
      may amend the Plan, subject to the limitations cited above, in such manner
      as it
      deems necessary to permit the granting of Stock Options meeting the requirements
      of future amendments or issued regulations, if any, to the Code.

    

    9.4 No
      NQSO
      may be granted during any suspension of the Plan or after termination of the
      Plan.

    

    10. Government
      and Other Regulations

    

    10.1 The
      obligation of the Company to issue, transfer and deliver Common Shares for
      Stock
      Options exercised under the Plan shall be subject to all applicable laws,
      regulations, rules, orders and approval which shall then be in effect and
      required by the relevant stock exchanges on which the Common Shares are traded
      and by government entities as set forth below or as the Committee in its sole
      discretion shall deem necessary or advisable. Specifically, in connection with
      the Securities Act of 1933, as amended, upon exercise of any Stock Option,
      the
      Company shall not be required to issue Common Shares unless the Committee has
      received evidence satisfactory to it to the effect that the Optionee will not
      transfer such shares except pursuant to a registration statement in effect
      under
      such Act or unless an opinion of counsel satisfactory to the Company has been
      received by the Company to the effect that such registration is not required.
      Any determination in this connection by the Committee shall be final, binding
      and conclusive. The Company may, but shall in no event be obligated to, take
      any
      other affirmative action in order to cause the exercise of a Stock Option or
      the
      issuance of Common Shares pursuant thereto to comply with any law or regulation
      of any government authority.

    

    11. Miscellaneous
      Provisions

    

    11.1 No
      person
      shall have any claim or right to be granted a Stock Option or Common Stock
      under
      the Plan, and the grant of an NQSO or Common Stock under the Plan shall not
      be
      construed as giving an Optionee or Common Stockholder the right to be retained
      by the Company. Furthermore, the Company expressly reserves the right at any
      time to terminate its relationship with an Optionee with or without cause,
      free
      from any liability, or any claim under the Plan, except as provided herein,
      in
      an option agreement, or in any agreement between the Company and the
      Optionee.

    

    11.2 Any
      expenses of administering this Plan shall be borne by the Company.

    

    11.3 The
      payment received from Optionee from the exercise of Stock Options under the
      Plan
      shall be used for the general corporate purposes of the Company.

    

    11.4 The
      place
      of administration of the Plan shall be in the State of California, and the
      validity, construction, interpretation, administration and effect of the Plan
      and of its rules and regulations, and rights relating to the Plan, shall be
      determined solely in accordance with the laws of the State of
      California.

    

    11.5 Without
      amending the Plan, grants may be made to persons who are foreign nationals
      or
      employed outside the United States, or both, on such terms and conditions,
      consistent with the Plan's purpose, different from those specified in the Plan
      as may, in the judgment of the Committee, be necessary or desirable to create
      equitable opportunities given differences in tax laws in other
      countries.

    

    11.6 In
      addition to such other rights of indemnification as they may have as members
      of
      the Board or the Committee, the members of the Committee shall be indemnified
      by
      the Company against all costs and expenses reasonably incurred by them in
      connection with any action, suit or proceeding to which they or any of them
      may
      be party by reason of any action taken or failure to act under or in connection
      with the Plan or any Stock Option granted thereunder, and against all amounts
      paid by them in settlement thereof (provided such settlement is approved by
      independent legal counsel selected by the Company) or paid by them in
      satisfaction of a judgment in any such action, suit or proceeding, except a
      judgment based upon a finding of bad faith; provided that upon the institution
      of any such action, suit or proceeding a Committee member shall, in writing,
      give the Company notice thereof and an opportunity, at its own expense, to
      handle and defend the same, with counsel acceptable to the Optionee, before
      such
      Committee member undertakes to handle and defend it on his own
      behalf.

     

    
      
        
        

      

      
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    11.7 Stock
      Options may be granted under this Plan from time to time, in substitution for
      stock options held by employees of other corporations who are about to become
      employees of the Company as the result of a merger or consolidation of the
      employing corporation with the Company or the acquisition by the Company of
      the
      assets of the employing corporation or the acquisition by the Company of stock
      of the employing corporation as a result of which it becomes a subsidiary of
      the
      Company. The terms and conditions of such substitute stock options so granted
      may vary from the terms and conditions set forth in this Plan to such extent
      as
      the Board of Directors of the Company at the time of grant may deem appropriate
      to conform, in whole or in part, to the provisions of the stock options in
      substitution for which they are granted, but no such variations shall be such
      as
      to affect the status of any such substitute stock options as a stock option
      under Section 422A of the Code.

    

    11.8 Notwithstanding
      anything to the contrary in the Plan, if the Committee finds by a majority
      vote,
      after full consideration of the facts presented on behalf of both the Company
      and the Optionee, that the Optionee has been engaged in fraud, embezzlement,
      theft, insider trading in the Company's stock, commission of a felony or proven
      dishonesty in the course of his association with the Company or any subsidiary
      corporation which damaged the Company or any subsidiary corporation, or for
      disclosing trade secrets of the Company or any subsidiary corporation, the
      Optionee shall forfeit all unexercised Stock Options and all exercised NQSO's
      under which the Company has not yet delivered the certificates and which have
      been earlier granted to the Optionee by the Committee. The decision of the
      Committee as to the cause of an Optionee's discharge and the damage done to
      the
      Company shall be final. No decision of the Committee, however, shall affect
      the
      finality of the discharge of such Optionee by the Company or any subsidiary
      corporation in any manner.

    

    12. Written
      Agreement

    

    12.1 Each
      Stock Option granted hereunder shall be embodied in a written Stock Option
      Agreement which shall be subject to the terms and conditions prescribed above
      and shall be signed by the Optionee and by the President or any Vice President
      of the Company, for and in the name and on behalf of the Company. Such Stock
      Option Agreement shall contain such other provisions as the Committee, in its
      discretion shall deem advisable.

    

      
        
          
          

        

        
          -
            8
            -

          
            

          

        

        
          
          

        

      

    

     

    
      	
              Number
                of Shares:  

            	 	
              Date
                of Grant: _______________

            

    

    

    FORM
      OF
      NON-QUALIFIED STOCK OPTION AGREEMENT

    

    AGREEMENT
      made this  __
      day of
      ___________ 2006,
      between                 
      (the
“Optionee”), and Elephant Talk Communications, Inc. (the
“Company”).

    

    1. Grant
      of Option

    

    The
      Company, pursuant to the provisions of the 2006 Non-Qualified Stock and Option
      Compensation Plan (the “Plan”), adopted by the Board of Directors on June ___,
      2006, the Company hereby grants to the Optionee, subject to the terms and
      conditions set forth or incorporated herein, an option to purchase from the
      Company all or any part of an aggregate of   
      shares
      of its $0.001 par value common stock, as such common stock is now constituted,
      at the purchase price of $ 
      per
      share. The provisions of the Plan governing the terms and conditions of the
      Option granted hereby are incorporated in full herein by reference.

    

    2. Exercise

    

    The
      Option evidenced hereby shall be exercisable in whole or in part on or after
      _________ and on or before ______ ,
      provided that the cumulative number of shares of common stock as to which this
      Option may be exercised (except in the event of death, retirement, or permanent
      and total disability, as provided in paragraph 6.9 of the Plan) shall not exceed
      the following amounts:

    

    
      	
              Cumulative
                Number 

              of
                Shares

            	 	
              Prior
                to Date

              (Not
                Inclusive of)

            

    

    

    

    

    

    

    The
      Option evidenced hereby shall be exercisable by the delivery to and receipt
      by
      the Company of (i) written notice of election to exercise, in the form set
      forth
      in Attachment B hereto, specifying the number of shares to be purchased; (ii)
      accompanied by payment of the full purchase price thereof in cash or certified
      check payable to the order of the Company, or by fully paid and nonassessable
      common stock of the Company properly endorsed over to the Company, or by a
      combination thereof, and (iii) by return of this Stock Option Agreement for
      endorsement of exercise by the Company on Schedule I hereof. In the event fully
      paid and nonassessable common stock is submitted as whole or partial payment
      for
      shares to be purchased hereunder, such common stock will be valued at their
      Fair
      Market Value (as defined in the Plan) on the date such shares received by the
      Company are applied to payment of the exercise price.

    

      
        
          
          

        

        
          -
            9
            -

          
            

          

        

        
          
          

        

      

    

     

    3. Transferability

    

    The
      Option evidenced hereby is not assignable or transferable by the Optionee other
      than by the Optionee's will or by the laws of descent and distribution, as
      provided in paragraph 6.9 of the Plan. The Option shall be exercisable only
      by
      the Optionee during his lifetime.

    

    
      	 	
              Elephant
                Talk Communications, Inc.

            
	 	 
	 	 
	 	
              By:
                _____________________________

            
	 	
              Name:

            
	
              ATTEST:

            	
              Title:

            

    

    

    

     

    Secretary

    

    Optionee
      hereby acknowledges receipt of a copy of the Plan, attached hereto and accepts
      this Option subject to each and every term and provision of such Plan. Optionee
      hereby agrees to accept as binding, conclusive and final, all decisions or
      interpretations of the Board of Directors administering the Plan on any
      questions arising under such Plan. Optionee recognizes that if Optionee's
      employment with the Company or any subsidiary thereof shall be terminated
      without cause, or by the Optionee, prior to completion or satisfactory
      performance by Optionee (except as otherwise provided in paragraph 6 of the
      Plan) all of the Optionee's rights hereunder shall thereupon terminate; and
      that, pursuant to paragraph 6 of the Plan, this Option may not be exercised
      while there is outstanding to Optionee any unexercised Stock Option granted
      to
      Optionee before the date of grant of this Option.

    

    

    
      	
              Dated:

            	 	 
	 	 	
              Optionee

            

    

    

    

    

    
      	 
	
              Print
                Name

            
	 
	 
	
              Address

            
	 
	 
	
              Social
                Security No.

            

    

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      B

    

    NOTICE
      OF
      EXERCISE

     

    

    To: Elephant
      Talk Communications, Inc.

     

    

    (1)  The
      undersigned hereby elects to purchase ________ shares of Common Shares (the
      “Common Shares”), of Elephant Talk Communications, Inc. pursuant to the terms of
      the attached Non-Qualified Stock Option Agreement, and tenders herewith payment
      of the exercise price in full, together with all applicable transfer taxes,
      if
      any.

    

    (2)  Please
      issue a certificate or certificates representing said shares of Common Shares
      in
      the name of the undersigned or in such other name as is specified
      below:

    

    

    
      	
               

            
	
              (Name)

            
	 
	 
	
               

            
	 
	
               

            
	
              (Address)

            

    

     

    Dated:

    

    

    
      	
               

            
	
              (Signature)

            

    

    

    

    

    
      	
              Optionee:  

            	 	
              Date
                of Grant: ________________________

            

    

    

      
        
          
          

        

        
          -
            11
            -

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      I

    

    

    
      	
              DATE

            	
              SHARES
                PURCHASED

            	
              PAYMENT
                RECEIVED

            	
              UNEXERCISED SHARES REMAINING

            	
              ISSUING OFFICER INITIALS

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    
      
        
        

      

      
        -
          12
          -EXHIBIT 10.1

	FORM
  OF

INVESTMENT ADVISORY AGREEMENT

     THIS INVESTMENT
ADVISORY AGREEMENT (the “Agreement”), dated as of  ______, 2006, is by and
among Fidelity Property Income Trust, a Maryland real estate investment trust
(the “Trust”), Fidelity Property Income Trust Limited Partnership, a Delaware
limited partnership (the “Controlled Partnership”), and Pyramis Global Advisors
Trust Company, a New Hampshire chartered trust company (the
“Advisor”).

	W I T N E S S E T
      H

     WHEREAS, the Trust
has filed with the Securities and Exchange Commission a registration statement
on Form S-11 covering a public offering (the “Offering”) of its common shares
(“Shares”) and the Trust may subsequently issue securities other than such
Shares or otherwise raise additional capital;

     WHEREAS, the Trust
intends to qualify as a REIT (as defined below), and to invest, directly and
indirectly, in investments in accordance with investment guidelines adopted by
its Board of Trustees (the “Board”) and Sections 856 through 860 of the Code (as
defined below);

     WHEREAS, the Trust
and the Controlled Partnership desire to avail themselves of the experience,
sources of information, advice, assistance and certain facilities of the Advisor
and to have the Advisor undertake the duties and responsibilities hereinafter
set forth on behalf of, and subject to the supervision of, the Board all as
provided herein; and

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

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

     1. DEFINITIONS. As
used in this Agreement, the following terms have the definitions hereinafter
indicated:

     Acquisition
Expenses. Any and all expenses incurred by the
Trust, the Advisor, or any Affiliate of either in connection with the selection,
acquisition or development of any Asset, whether or not acquired, including,
without limitation, legal fees and expenses, travel and communications expenses,
costs of appraisals, nonrefundable option payments on property not acquired,
accounting fees and expenses, and title insurance premiums.

     Acquisition
Fees. Any and all fees and commissions, exclusive of
Acquisition Expenses, paid by any Person to any other Person (including any fees
or commissions paid by or to any Affiliate of the Trust or the Advisor) in
connection with making or investing in Mortgages or the purchase, development or
construction of a Property, 

including real estate commissions, selection
fees, Development Fees, Construction Fees, nonrecurring management fees, loan
fees, points or any other fees of a similar nature. Excluded shall be
Development Fees and Construction Fees paid to any Person not affiliated with
the Sponsor in connection with the actual development and construction of a
project. 

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

     Asset. Any Property, Mortgage or other
investment (other than investments in bank accounts, money market funds or other
current assets) owned by the Trust, directly or indirectly through one or more
of its Affiliates, and any other investment made by the Trust, directly or
indirectly through one or more of its Affiliates.

     Average Invested
Assets. For a specified period, the average of the
aggregate book value of the assets of the Trust invested, directly or
indirectly, in equity interests in and loans secured by real estate, before
deducting depreciation, bad debts or other non-cash reserves, computed by taking
the average of such values at the end of each month during such
period.

    
Bylaws. The bylaws of the Trust, as the same are
in effect from time to time.

     Code. Internal Revenue Code of 1986, as amended.

     Construction
Fee. A fee or other remuneration for acting as
general contractor and/or construction manager to construct improvements,
supervise and coordinate projects or to provide major repairs or rehabilitations
on a Property. 

     Contract
Purchase Price. The amount actually paid or
allocated in respect of the purchase, development, construction or improvement
of a Property or the amount of funds advanced with respect to a Mortgage, or the
amount actually paid or allocated in respect of the purchase of other Assets, in
each case exclusive of Acquisition Fees and Acquisition Expenses.

     Dealer
Manager. An Affiliate of the Trust, or such other
Person selected by the Board to act as the dealer manager, if any, for the
Offering.

     Declaration of
Trust. The Declaration of Trust of the Trust, as
amended from time to time.

2

     Development
Fee. A fee for the packaging of a Property,
including the negotiation and approval of plans, and any assistance in obtaining
zoning and necessary variances and financing for a specific Property, either
initially or at a later date.

     Distributions. Any distributions of money
or other property by the Trust to owners of Shares, including distributions that
may constitute a return of capital for federal income tax purposes.

     Gross
Proceeds. The aggregate purchase price of all Shares
sold for the account of the Trust through the Offering, without deduction for
Selling Commissions, volume discounts, any marketing support and due diligence
expense reimbursement or Organization and Offering Expenses. For the purpose of
computing Gross Proceeds, the purchase price of any Share for which reduced
Selling Commissions are paid to the Dealer Manager or a Soliciting Dealer (where
net proceeds to the Trust are not reduced) shall be deemed to be the full amount
of the offering price per Share pursuant to the prospectus for such Offering
without reduction.

     Independent
Trustee. A Trustee 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 Sponsor or the Advisor by
virtue of (i) ownership of an interest in the Sponsor, the Advisor or any of
their Affiliates, other than the Trust, (ii) employment by the Sponsor, the
Advisor or any of their Affiliates, (iii) service as an officer or trustee of
Sponsor, the Advisor or any of their Affiliates, other than as a Trustee, (iv)
performance of services, other than as a Trustee, for the Trust, (v) service as
a director or trustee of more than three real estate investment trusts organized
by the Sponsor or advised by the Advisor, or (vi) maintenance of a material
business or professional relationship with the Sponsor, the Advisor or any of
their Affiliates. A business or professional relationship is considered material
if the gross revenue derived by the Trustee from Sponsor, the Advisor or any of
their Affiliates exceeds 5% of either the Trustee’s annual gross revenue during
either of the last two years or the Trustee’s net worth on a fair market value
basis. An indirect association with the Sponsor or the Advisor shall include
circumstances in which a Trustee’s spouse, parents, children, siblings, mothers-
or fathers-in-law, sons- or daughters-in-law, or brothers- or sisters-in-law is
or has been associated with the Sponsor, the Advisor or any of their Affiliates
or the Trust.

    
Investment. An investment in Real Property, any
Securities or any other asset.

     Investment
Guidelines. The investment guidelines adopted by the
Board, as amended from time to time.

     Limited
Partner. A limited partner of the Controlled
Partnership.

     Listing. The listing of the Shares on a
national securities exchange, the quotation of the Shares by The Nasdaq Stock
Market (“Nasdaq”) or the trading of the Shares in the over-the-counter market.
Upon such Listing, the Shares shall be deemed Listed.

3

     Mortgages. In connection with mortgage financing provided, invested in, participated in or purchased by the Trust, all of the notes, deeds of trust, security interests
or other evidences of indebtedness or obligations, which are secured or collateralized by Real Property owned by the borrowers under such notes, deeds of trust, security interests or other evidences of indebtedness or obligations.

     Net Income. For any period, the total revenues applicable to such period, less the total expenses applicable to such period excluding additions to reserves for
depreciation, bad debts or other similar non-cash reserves.

     Operating Expenses. All costs and expenses incurred by the Trust, as determined under generally accepted accounting principles, which in any way are related to the
operation of the Trust or to Trust business, including the Advisory Fee, but excluding (i) the expenses of raising capital such as Organizational and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and
other fees, printing and other such expenses and 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 loan reserves, (v) the Property Management Fee and (vi) Acquisition Fees and Acquisition Expenses, real estate commissions on the sale of property, and other expenses connected with the acquisition, and ownership of real estate
interests, mortgage loans or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property).

     Organization and Offering Expenses. Any and all costs and expenses incurred by and to be paid from the assets of the Trust in connection with the formation,
qualification and registration of the Trust, and the marketing and distribution of Shares, including, without limitation, total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys), expenses for
printing, engraving, amending, supplementing, mailing and distributing costs, salaries of employees while engaged in sales activity, telephone and other telecommunications costs, all advertising and marketing expenses (including the costs related to
investor and broker-dealer sales meetings), charges of transfer agents, registrars, trustees, escrow holders, depositories, experts, fees, expenses and taxes related to the filing, registration and qualification of the sale of the Shares under
federal and state laws, including taxes and fees and accountants’ and attorneys’ fees.

     Person. An individual, corporation, partnership, trust, joint venture, limited liability company or other entity.

     Property or Properties. As the context requires, any, or all, respectively, of the Real Property acquired by the Trust, directly or indirectly through joint venture
arrangements or other partnership or investment interests.

4

     Property Management Fee. Fees paid to a property management company (which may be an Affiliate of the Advisor) in consideration for the management and leasing of
Properties.

     Real Property. 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 “real estate investment trust” under Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real estate
investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder.

     Sale or Sales. The term “Sale” or “Sales” shall mean (i) any transaction or series of transactions whereby: (A) the Trust or the Controlled
Partnership 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 Trust or the Controlled Partnership 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 Trust or the Controlled Partnership 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 Trust or the Controlled Partnership 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 Trust or the Controlled Partnership directly or indirectly (except as described in
other subsections of this definition) sells, grants, conveys or relinquishes its interest in any Mortgage or portion thereof (including with respect to any Mortgage, all payments thereunder or in satisfaction thereof other than regularly scheduled
interest payments) of amounts owed pursuant to such Mortgage and any event which gives rise to a significant amount of insurance proceeds or similar awards; or (E) the Trust or the Controlled Partnership 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 by the Trust or the Controlled Partnership in one or more Assets within 180 days thereafter.

     Securities. Any Shares, any other stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or
other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim
certificates for, receipts for, 

5

guarantees of, or warrants, options or rights to
subscribe to, purchase or acquire, any of the foregoing.

     Selling
Commissions. Any and all commissions payable to
underwriters, dealer managers or other broker-dealers in connection with the
sale of Shares.

     Shareholders. The holders of record of
the Shares as maintained in the books and records of the Trust or its transfer
agent.

     Shares. The common shares of beneficial
interest of the Trust to be sold in the Offering.

     Soliciting
Dealers. Those broker-dealers that are members of
the National Association of Securities Dealers, Inc., or that are exempt from
broker-dealer registration, and that, in either case, enter into participating
broker or other agreements with the Dealer Manager or the Trust to sell Shares.

     Sponsor. Any Person which (i) is directly
or indirectly instrumental in organizing, wholly or in part, the Trust, (ii)
will control, manage or participate in the management of the Trust, and any
Affiliate of any such Person, (iii) takes the initiative, directly or
indirectly, in founding or organizing the Trust, either alone or in conjunction
with one or more other Persons, (iv) receives a material participation in the
Trust in connection with the founding or organizing of the business of the
Trust, in consideration of services or property, or both services and property,
(v) has a substantial number of relationships and contacts with the Trust, (vi)
possesses significant rights to control Properties, (vii) receives fees for
providing services to the Trust which are paid on a basis that is not customary
in the industry, or (viii) provides goods or services to the Trust on a basis
which was not negotiated at arm’s-length with the Trust. “Sponsor” does not
include any Person whose only relationship with the Trust is that of an
independent property manager and whose only compensation is as such, or wholly
independent third parties such as attorneys, accountants and underwriters whose
only compensation is for professional services.

     Termination
Date. The date of termination of the
Agreement.

    
Trustee. A member of the Board.

     Valuation
Guidelines. The valuation guidelines adopted by the
Board, as amended from time to time.

     2%/25%
Guidelines. For any year in which the Trust
qualifies as a REIT, the requirement pursuant to the guidelines of the North
American Securities Administrators Association, Inc. that, in any 12 month
period, total Operating Expenses not exceed the greater of 2% of the Trust’s
Average Invested Assets during such 12 month period or 25% of the Trust’s Net
Income over the same 12 month period.

6

     2. APPOINTMENT. The
Trust and the Controlled Partnership hereby appoint the Advisor to serve as
their advisor on the terms and conditions set forth in this Agreement, and the
Advisor hereby accepts such appointment.

     3. DUTIES OF THE
ADVISOR. The Advisor undertakes to present to the Trust (including in its
capacity as general partner of the Controlled Partnership) and the Controlled
Partnership potential investment opportunities and to provide a continuing and
suitable investment program consistent with the investment objectives and
policies of the Trust as determined and adopted from time to time by the Board.
In performance of this undertaking, subject to the supervision of the Board and
consistent with the Investment Guidelines, the Declaration of Trust and the
Bylaws, the Advisor shall, either directly or by engaging an
Affiliate:
 
	     	(a)      	serve as the Trust’s and the Controlled
      Partnership’s investment and financial advisor and provide research and
      economic and statistical data in connection with the Trust’s and the
      Controlled Partnership’s assets and investment policies; 
		 
		(b)      	provide the daily management of the
      Trust and the Controlled Partnership and perform and supervise the various
      administrative functions reasonably necessary for the management of the
      Trust and the Controlled Partnership, including: the collection of
      revenues and the payment of the Trust’s and the Controlled Partnership’s
      debts and obligations; maintenance of appropriate computer services to
      perform such administrative functions; keeping the Trust’s and the
      Controlled Partnership’s books and records; and organizing meetings of the
      Board; 
		 
		(c)      	investigate, select, and, on behalf of
      the Trust and the Controlled Partnership, engage and conduct business
      with such Persons as the Advisor deems necessary to the proper performance
      of its obligations hereunder, including but not limited to consultants,
      accountants, appraisers, correspondents, lenders, technical advisors,
      attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
      depositaries, custodians, agents for collection, insurers, insurance
      agents, banks, builders, developers, property managers, property owners,
      mortgagors, and any and all agents for any of the foregoing, including
      Affiliates of the Advisor, and 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 Trust and the Controlled Partnership, with any of the
      foregoing; 
		 
		(d)      	consult with the officers and Trustees
      and assist the Trustees in the formulation and implementation of the
      Trust’s financial, valuation and other policies, and, as necessary,
      furnish the Trustees with advice and recommendations with respect to the
      making of investments and dispositions consistent with the investment
      objectives and policies of the Trust and in 
		 

7

	      	 	connection with any borrowings proposed
      to be undertaken by the Trust or the Controlled Partnership; 
		 
		(e)      	(i) locate, analyze and select potential
      Investments to be made by the Trust or the Controlled Partnership, (ii)
      structure and negotiate the terms and conditions of transactions pursuant
      to which Investments will be made and disposed of by the Trust and the
      Controlled Partnership; (iii) make and dispose of Investments on behalf of
      the Trust and the Controlled Partnership in compliance with the investment
      objectives and policies of the Trust and the Controlled Partnership; (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 Trust’s and the Controlled
      Partnership’s Investments; and (v) enter into leases and service contracts
      on behalf of the Trust and the Controlled Partnership and their respective
      assets and Investments and, to the extent necessary, perform all other
      operational functions for the maintenance and administration of the Trust
      and the Controlled Partnership and their respective assets and
      Investments; 
		 
		(f)      	provide the Trustees with periodic
      reports regarding prospective Investments to be made by the Trust and the
      Controlled Partnership; 
		 
		(g)      	negotiate on behalf of the Trust and the
      Controlled Partnership with banks or lenders for loans to be made to the
      Trust or the Controlled Partnership, and negotiate on behalf of the Trust
      or the Controlled Partnership with investment banking firms and
      broker-dealers or negotiate private sales of Shares and Securities or
      obtain loans for the Trust or the Controlled Partnership, 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 Trust or the Controlled Partnership, as
      applicable; 
		 
		(h)      	obtain reports (which may be prepared by
      the Advisor or its Affiliates), where appropriate, concerning the value of
      investments or contemplated investments of the Trust or the Controlled
      Partnership; 
		 
		(i)      	from time to time, or at any time
      reasonably requested by the Trustees, make reports to the Trustees of its
      performance of services to the Trust or the Controlled Partnership under
      this Agreement; 
		 
		(j)      	provide the Trust and the Controlled
      Partnership with all necessary cash management services; 
		 
		(k)      	do all things necessary to assure its
      ability to render the services described in this Agreement; 
		 

8

	     	(l)      	deliver to or maintain on behalf of the
      Trust or the Controlled Partnership, as applicable, copies of all
      appraisals obtained in connection with the investments in
      Properties; 
		 
		(m)      	arrange, negotiate, coordinate and
      manage operations of any joint venture or co-investment interests held by
      the Trust or the Controlled Partnership and conduct all matters with any
      joint venture or co-investment partners; 
		 
		(n)      	communicate on the Trust’s or the
      Controlled Partnership’s behalf with the respective holders of any of the
      Trust’s or the Controlled Partnership’s equity or debt securities as
      required to satisfy the reporting and other requirements of any
      governmental bodies or agencies and to maintain effective relations with
      such holders; 
		 
		(o)      	evaluate and recommend to the Board
      modifications to the hedging strategies in effect and cause the Trust to
      engage in overall hedging strategies consistent with the Trust’s status as
      a REIT and with the Trust’s Investment Guidelines; 
		 
		(p)      	advise the Trust regarding the
      maintenance of the Trust’s status as a REIT and monitor compliance with
      the various REIT qualification tests and other rules set out in the Code
      and Treasury Regulations thereunder; 
		 
		(q)      	advise the Trust regarding the
      maintenance of the Trust’s exemption from the Investment Company Act of
      1940, as amended (the “Investment Company Act”), and monitor compliance
      with the requirements for maintaining an exemption from that Act;
    
		 
		(r)      	monitor the operating performance of the
      Trust’s and the Controlled Partnership’s Investments and provide periodic
      reports with respect thereto to the Board, including comparative
      information with respect to such operating performance and budgeted or
      projected operating results; 
		 
		(s)      	invest or reinvest any money of the
      Trust or the Controlled Partnership (including investing in short-term
      Investments pending investment in long- term Investments, payment of fees,
      costs and expenses, or payments of distributions to the Trust’s
      shareholders and the Controlled Partnership’s partners), and advise the
      Trust and the Controlled Partnership as to the Trust’s or the Controlled
      Partnership’s respective capital structure and capital raising;
  
		 
		(t)      	cause the Trust and the Controlled
      Partnership to retain qualified accountants and legal counsel, as
      applicable, to assist in developing appropriate accounting procedures,
      compliance procedures and testing systems with respect to financial
      reporting obligations and compliance with the REIT provisions of the Code
      and to conduct quarterly compliance reviews thereto, as applicable;
    
		 

9

	     	(u)      	cause the Trust and the Controlled
      Partnership to qualify to do business in all applicable jurisdictions and
      to obtain and maintain all appropriate licenses; 
		 
		(v)      	assist the Trust in maintaining the
      registration of the Shares under federal securities laws (including the
      Sarbanes-Oxley Act of 2002) and complying with all federal, state and
      local regulatory requirements applicable to the Trust in respect of the
      Trust’s business activities, including preparing or causing to be prepared
      all financial statements required under applicable regulations and
      contractual undertakings and all reports and documents, if any, required
      under the Securities Exchange Act of 1934, as amended; 
		 
		(w)      	take all necessary actions to enable the
      Trust and the Controlled Partnership to make required tax filings and
      reports, including soliciting shareholders for required information to the
      extent provided by the REIT provisions of the Code; 
		 
		(x)      	handle and resolve all claims, disputes
      or controversies (including all litigation, arbitration, settlement or
      other proceedings or negotiations) in which the Trust or the Controlled
      Partnership may be involved or to which the Trust or the Controlled
      Partnership may be subject, arising out of the Trust’s or the Controlled
      Partnership’s day-to-day operations, subject to such limitations or
      parameters as may be imposed from time-to-time by the Board; 
		 
		(y)      	use commercially reasonable efforts to
      cause expenses incurred by or on behalf of the Trust and the Controlled
      Partnership to be reasonable or customary and within any budgeted
      parameters or expense guidelines set by the Board from
      time-to-time; 
		 
		(z)      	perform such other services as may be
      required from time-to-time for management and other activities relating to
      the Trust’s and the Controlled Partnership’s respective assets as the
      Board will reasonably request or the Advisor will deem appropriate under
      the particular circumstances; 
		 
		(aa)      	use commercially reasonable efforts to
      cause the Trust and the Controlled Partnership to comply with all
      applicable laws; and 
		 
		(bb)      	calculate the Trust’s and the Controlled
      Partnership’s respective net asset values, recommend independent valuation
      experts and appraisers and perform valuations and other services, each as
      provided in the Valuation Guidelines. 
		 

4. AUTHORITY OF ADVISOR.

     (a) Pursuant to the
terms of this Agreement (including the restrictions included in this Paragraph 4
and in Paragraph 7), and subject to the continuing and exclusive authority of
the Trustees over the management of the Trust and the Trust’s 

10

authority, in its capacity as general partner of the Controlled Partnership, over the management of the Controlled Partnership, the Trustees and the Controlled Partnership hereby delegate to the Advisor the authority to take, or
cause to be taken, any and all actions to execute and deliver any and all agreements, certificates, assignments, instruments or other documents and to do any and all things that, in the judgment of the Advisor, may be necessary or advisable in
connection with the Advisor’s duties hereunder, including, without limitation, to: (i) locate, analyze and select investment opportunities for the Trust and the Controlled Partnership; (ii) structure the terms and conditions of transactions
pursuant to which investments will be made, acquired or disposed of for the Trust and the Controlled Partnership; (iii) acquire investments in compliance with the investment objectives and policies of the Trust and the Controlled Partnership, as
applicable; (iv) arrange for financing or refinancing Properties and other investments; (v) enter into leases and service contracts for the Trust’s and the Controlled Partnership’s Real Property and other investments; (vi) oversee
Affiliated and non-Affiliated property managers who perform services for the Trust, the Controlled Partnership or their Affiliates; and (vii) manage accounting and other record-keeping functions for the Trust and the Controlled
Partnership.

     (b) If a transaction requires approval by the Independent Trustees, the Advisor will deliver to the Independent Trustees documents required by them to properly evaluate the proposed
transaction.

     The Trustees may, at any time upon the giving of written notice to the Advisor, modify or revoke the authority set forth in this Paragraph 4. If and to the extent the Trustees so modify or revoke the
authority contained herein, the Advisor shall henceforth submit to the Trustees for prior approval such proposed transactions involving investments as thereafter require prior approval, provided however, that such modification or revocation shall be
effective upon receipt by the Advisor and shall not be applicable to transactions to which the Advisor has committed the Trust or the Controlled Partnership prior to the date of receipt by the Advisor of such notification.

     5. BANK ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Trust or the Controlled Partnership or in the name of the Trust or the
Controlled Partnership and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Trust or the Controlled Partnership, under such terms and conditions as the Trustees may
approve, provided that no funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Trustees and to the auditors of the Trust and the
Controlled Partnership, as applicable.

     6. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the Trustees and by counsel, auditors and
authorized agents of the Trust, 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 Trust and the Controlled Partnership.

11

     7. 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 Trust as a REIT, (b)
subject the Trust or the Controlled Partnership to regulation under the
Investment Company Act, or (c) violate any law, rule, regulation or statement of
policy of any governmental body or agency having jurisdiction over the Trust,
the Controlled Partnership, their respective Securities, or otherwise not be
permitted by the Declaration of Trust, Bylaws or Limited Partnership Agreement
of the Controlled Partnership, except if such action shall be ordered by the
Trustees, in which case the Advisor shall notify promptly the Trustees of the
Advisor’s judgment of the potential impact of such action and shall refrain from
taking such action until it receives further clarification or instructions from
the Trustees. In such event the Advisor shall have no liability for acting in
accordance with the specific instructions of the Trustees so given.
Notwithstanding the foregoing, the Advisor, its directors, officers, employees
and shareholders, and shareholders, directors and officers of the Advisor’s
Affiliates shall not be liable to the Trust, the Controlled Partnership or any
of their respective trustees, directors, officers, employees, shareholders,
partners or agents for any act or omission by the Advisor, its directors,
officers or employees, or shareholders, directors or officers of the Advisor’s
Affiliates taken or omitted to be taken in the performance of their duties under
this Agreement except as provided in Paragraphs 19 and 20 of this
Agreement.

     8. RELATIONSHIP
WITH TRUSTEES. Subject to Paragraph 7 of this 

Agreement and to restrictions advisable with
respect to the qualification of the Trust as a REIT, directors, officers and
employees of the Advisor or an Affiliate of the Advisor or any corporate parents
of an Affiliate, or directors, officers or stockholders of any corporate parent
of an Affiliate may serve as Trustees and as officers of the Trust, except that
no director, officer or employee of the Advisor or its Affiliates who also is a
Trustee or officer of the Trust shall receive any compensation from the Trust
for serving as a Trustee or officer other than reasonable reimbursement for
travel and related expenses incurred in attending meetings of the
Trustees.

     9. FEES.

            (a) Advisory Fees. The Advisor shall receive as compensation for services rendered
hereunder an advisory fee from the Trust (the “Trust Advisory Fee”) and an
advisory fee from each Limited Partner (each, a “Limited Partner Advisory Fee”
and, together with the Trust Advisory Fee, the “Advisory Fees”). The Advisory
Fees shall each accrue daily and be paid quarterly in arrears.

                     (i) Each quarterly installment of the Trust Advisory Fee shall be
equal to the product of (A) one-quarter of 1.1%, multiplied by (B) the average
daily net asset value of the Trust during the applicable quarter.

                     (ii) Each quarterly installment of the Limited Partner Advisory Fee
payable by a Limited Partner shall be equal to the product of (A) one-quarter of

12

the Advisory Fee Rate set forth in such Limited
Partner’s Subscription Agreement pursuant to which such Limited Partner
subscribed for an interest in the Controlled Partnership, multiplied by (B) the
average daily net asset value of such Limited Partner’s interest in the
Controlled Partnership during the applicable quarter. 

     If the Advisory
Fees are payable with respect to any partial calendar quarter, they will be
prorated based on the number of days elapsed during any such partial calendar
quarter.

     The net asset value
of the Trust and of a Limited Partner’s interest in the Controlled Partnership
shall be calculated by the Advisor or its Affiliates using the methodologies set
forth in the Valuation Guidelines.

            (b) Loans from Affiliates. If any loans are made to the Trust by an Affiliate of the Advisor,
the maximum amount of interest that may be charged by such Affiliate shall be
the lesser of (i) 1% above the prime rate of interest charged from time to time
by the principal bank then used by the Trust and (ii) the rate that would be
charged to the Trust by unrelated lending institutions on comparable loans for
the same purpose. The terms of any such loans shall be no less favorable than
the terms available between non-Affiliated Persons for similar commercial
loans.

            (c) Changes to Fee
Structure. In the event of Listing, the Trust and
the Advisor shall negotiate in good faith to establish a fee structure
appropriate for a public company. A majority of the Independent Trustees must
approve the new fee structure negotiated with the Advisor. In negotiating a new
fee structure, the Independent Trustees shall consider all of the factors they
deem relevant, including, but not limited to: (i) the amount of the advisory fee
in relation to the asset value, composition and profitability of the Trust’s
portfolio; (ii) the success of the Advisor in generating opportunities that meet
the investment objectives of the Trust; (iii) the rates charged to other REITs
and to investors other than REITs by advisors performing the same or similar
services; (iv) additional revenues realized by the Advisor and its Affiliates
through their relationship with the Trust, including loan administration,
underwriting or broker commissions, servicing, engineering, inspection and other
fees, whether paid by the Trust or by others with whom the Trust does business;
(v) the quality and extent of service and advice furnished by the Advisor; (vi)
the performance of the investment portfolio of the Trust, including income,
conversion or appreciation of capital, and number and frequency of problem
investments; and (vii) the quality of the Property portfolio of the Trust in
relationship to the investments generated by the Advisor for its own account.
The new fee structure can be no more favorable to the Advisor than the current
fee structure.

            (d) Exclusion of Certain
Transactions. In the event the Trust or the
Controlled Partnership shall propose to enter into any transaction in which an
officer or Trustee of the Trust, the Advisor, or any Affiliate of the Trust or
the Advisor has a direct or indirect interest, then such transaction shall be
approved by a majority of the Board (including a majority of the Independent
Trustees).

13

     10. EXPENSES.

           
(a) In addition to the compensation paid to the Advisor
pursuant to Paragraph 9 hereof, the Trust or the Controlled Partnership, as
applicable, shall pay directly or reimburse the Advisor for all of the expenses
paid or incurred by the Advisor on behalf of the Trust, the Controlled
Partnership or their respective Affiliates, including, but not limited
to:

               
 (i) the Trust’s Organizational and Offering Expenses;
provided, however, that within 60 days of the Trust’s first filing with the
Securities and Exchange Commission, the Advisor shall reimburse the Trust for
any Organizational and Offering Expenses reimbursement received by the Advisor
pursuant to this Paragraph 10, to the extent that such reimbursement exceeds the
maximum amount permitted or, at the option of the Trust, such excess shall be
subtracted from the next reimbursement of expense to be made by the Trust
pursuant to this Paragraph 10. The Advisor shall be responsible for the payment
of all the Trust’s Organizational and Offering Expenses in excess of the maximum
amount permitted;

           
     (ii) Acquisition Expenses
incurred in connection with the selection and acquisition of
Investments;

             
   (iii) the actual cost of goods and services
used by the Trust or the Controlled Partnership and obtained from third parties,
other than Acquisition Expenses, (including brokerage fees paid in connection
with the purchase and sale of securities);

             
   (iv) interest and other costs for borrowed
money, including discounts, points, breakage fees and other similar
fees;

                
(v) taxes and assessments on income of the Trust or Properties;

             
   (vi) costs associated with insurance required
in connection with the business of the Trust, the Controlled Partnership or by
the Trustees;

              
  (vii) expenses of managing and operating Properties
owned by the Trust and the Controlled Partnership, whether payable to an
Affiliate of the Advisor, the Trust or the Controlled Partnership or a
non-affiliated Person;

             
   (viii) all expenses in connection with
payments to the Trustees and meetings of the Trustees, Shareholders and Limited
Partners;

                
(ix) expenses associated with Listing or with the issuance and
distribution of Shares and Securities, such as selling commissions and fees,
advertising expenses, taxes, legal and accounting fees, Listing and registration
fees, and other Organization and Offering Expenses;

14

               
 (x) expenses connected with payments of Distributions in
cash or otherwise made or caused to be made by the Trust to the Shareholders or
distributions in cash or otherwise made or caused to be made by the Controlled
Partnership to its partners;

               
 (xi) expenses of organizing, revising, amending,
converting, modifying, or terminating the Trust, the Declaration of Trust, the
Controlled Partnership or the Agreement of Limited Partnership of the Controlled
Partnership;

             
   (xii) expenses of maintaining communications
with Shareholders and Limited Partners, including the cost of preparation,
printing, and mailing annual reports and other Stockholder or Limited Partner
reports, proxy statements and other reports required by governmental entities;
and

                
(xiii) audit, accounting and legal fees.

          
 (b) Expenses incurred by the Advisor on behalf of the
Trust or the Controlled Partnership and payable pursuant to this Paragraph 10
shall be reimbursed to the Advisor no less than monthly, unless otherwise agreed
in writing by the Advisor. The Advisor shall prepare a statement documenting the
expenses of the Trust and the Controlled Partnership and the calculation of the
Advisory Fees during each quarter, and shall deliver such statement to the Trust
and the Controlled Partnership within 45 days after the end of each
quarter.

      
     (c) Notwithstanding anything to
the contrary contained herein, the Advisor and its Affiliates will not be
reimbursed for certain Organizational and Offering expenses in the amount of $
incurred by the Advisor or its Affiliates prior to the Offering.

     11. OTHER SERVICES.
Should the Trustees request that the Advisor or any director, officer or
employee thereof render services for the Trust or the Controlled Partnership
other than set forth in Paragraph 3, such services shall be separately
compensated at such rates and in such amounts as are agreed by the Advisor and
the Independent Trustees of the Trust, subject to the limitations contained in
the Declaration of Trust, and shall not be deemed to be services pursuant to the
terms of this Agreement.

     12. REIMBURSEMENT
TO THE ADVISOR. For any year in which the Trust qualifies as a REIT, the Trust
shall not reimburse the Advisor at the end of any fiscal quarter Operating
Expenses that, 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 (the “2%/25% Guidelines”) for such year. Any Excess Amount
paid to the Advisor during a fiscal quarter shall be repaid to the Trust or, at
the option of the Trust, subtracted from the Operating Expenses reimbursed
during the subsequent fiscal quarter. If there is an Excess Amount in any
Expense Year and the Independent Trustees determine that such excess was
justified, based on unusual and nonrecurring factors which they deem sufficient,
the Excess Amount may be carried over 

15

and included in Operating Expenses in subsequent
Expense Years, and reimbursed to the Advisor in one or more of such years,
provided that Operating Expenses in any Expense Year, including any Excess
Amount to be paid to the Advisor, shall not exceed the 2%/25% Guidelines. Within
60 days after the end of any fiscal quarter of the Trust for which total
Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, there
shall be sent to the shareholders a written disclosure of such fact, together
with an explanation of the factors the Independent Trustees considered in
determining that such excess expenses were justified. Such determination shall
be reflected in the minutes of the meetings of the Board. The Trust 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 the foregoing computation shall be determined in accordance with
generally accepted accounting principles applied on a consistent
basis.

     13. OTHER
ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent the Advisor
from engaging in other activities, including, without limitation, the rendering
of advice to other Persons (including, without limitation, 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
Trustee, 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
partnership, corporation, firm, individual, trust or association. The Advisor
may, with respect to any investment in which the Trust or the Controlled
Partnership is a participant, also render advice and service to each and every
other participant therein. The Advisor shall not have any obligation to
purchase, manage or sell for the Trust or the Controlled Partnership any
investment that the Advisor, its Affiliates or any of their respective clients
may purchase or sell for its or their own accounts, and the timing and amount of
any such purchase or sale by the Advisor, its Affiliates or any of their
respective clients may be different than any purchase or sale of the same
investment by Trust or the Controlled Partnership.

      
     Each of the Trust and the
Controlled Partnership hereby acknowledge that the Advisor and its Affiliates
currently, and in the future may, advise and manage other investment programs
some of which have, or may in the future have, similar objectives as the Trust
and the Controlled Partnership.

        
   If the Advisor or its Affiliates is presented
with a potential investment which might be made by the Trust or the Controlled
Partnership and by another investment program which the Advisor or its
Affiliates advises or manages, the Advisor shall allocate the investment in
accordance with the Advisor’s or its Affiliates’ allocation policies, as such
allocation policies may be amended from time to time. Such allocation policies
may allocate investment opportunities on a degree of concordance with investment
mandate, pro-rata, or other basis.

     The Advisor and its
Affiliates may aggregate sales and purchase orders with respect to transactions
for the Trust and the Controlled Partnership with similar orders being made
simultaneously for other programs managed by the Advisor or its
Affiliates.

16

The Advisor and its Affiliates are also
authorized to execute agency cross transactions with respect to transactions for
the Trust and the Controlled Partnership.

     14. RELATIONSHIP OF
PARTIES. The Trust and the Controlled Partnership, on the one hand, and the
Advisor on the other 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.

     15. TERM;
TERMINATION OF AGREEMENT. This Agreement shall continue in force for a period of
one year from the date hereof, subject to an unlimited number of successive
one-year renewals upon mutual consent of the parties. It is the duty of the
Trustees of the Trust 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.

     16. TERMINATION BY ANY
PARTY. This Agreement may be terminated:

           (a) immediately by the Trust or the Controlled Partnership for
“cause,” or upon the bankruptcy of the Advisor, or upon a material breach of
this Agreement by the Advisor; provided, that such material breach is not
capable of being cured or has not been cured within thirty (30) days after the
giving of notice thereof by the Trust or the Controlled Partnership to the
Advisor;

           (b) without cause by a majority of the Independent Trustees of the
Trust or a majority of all Trustees of the Trust upon 60 days’ written notice;
or

           (c) by
the Advisor upon 60 days’ written notice.

       
    For purposes of this Paragraph 16,
“cause” means fraud, criminal conduct, willful misconduct or willful or
negligent breach of fiduciary duty by the Advisor in connection with performing
its duties hereunder.

     17. ASSIGNMENT TO
AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate with
the approval of a majority of the Trustees (including a majority of the
Independent Trustees). The Advisor may assign any rights to receive fees or
other payments under this Agreement without obtaining the approval of the
Trustees. This Agreement shall not be assigned by the Trust or the Controlled
Partnership without the consent of the Advisor, except in the case of an
assignment by the Trust or the Controlled Partnership to a corporation or other
organization which is a successor to all of the assets, rights and obligations
of the Trust or the Controlled Partnership, in which case such successor
organization shall be bound hereunder and by the terms of said assignment in the
same manner as the Trust and the Controlled Partnership are bound by this
Agreement.

17

     18. PAYMENTS TO AND
DUTIES OF ADVISOR UPON TERMINATION. Payments to the Advisor of unpaid expense
reimbursements pursuant to this Section 19 shall be subject to the 2%/25%
Guidelines to the extent applicable.

           (a) After the Termination Date, the Advisor shall not be entitled to
compensation for further services hereunder except it shall be entitled to
receive from the Trust within 30 days after the effective date of such
termination all unpaid reimbursements of expenses and all unpaid fees,
including, without limitation all unpaid Advisory Fees, that were earned by the
Advisor, or that otherwise accrued, prior to the termination of this
Agreement.

           (b)
The Advisor shall promptly upon termination:

                (i) pay over to the Trust or the Controlled Partnership, as the case
may be, all money collected and held for the account of the Trust or the
Controlled Partnership, respectively pursuant to this Agreement, after deducting
any accrued compensation and reimbursement for its expenses to which it is then
entitled;

             
  (ii) deliver to the Trustees 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 Trustees;

                (iii) deliver to the Trustees all assets, including Properties, and
documents of the Trust or the Controlled Partnership, as the case may be, then
in the custody of the Advisor; and

          
     (iv) cooperate with the Trust and
the Controlled Partnership, as the case may be, to provide an orderly management
transition.

     19. INDEMNIFICATION
BY THE TRUST AND THE CONTROLLED PARTNERSHIP. The Trust and the Controlled
Partnership shall indemnify and hold harmless the Advisor and its Affiliates,
including their respective officers, directors, partners and employees, from all
liability, claims, damages or losses arising in the performance of their duties
hereunder, and related expenses, including reasonable attorneys’ fees, to the
extent such liability, claims, damages or losses and related expenses are not
fully reimbursed by insurance, subject to any limitations imposed by the laws of
the State of Maryland, the Declaration of Trust or the Agreement of Limited
Partnership of the Controlled Partnership. Notwithstanding the foregoing, the
Advisor shall not be entitled to indemnification or be held harmless pursuant to
this Paragraph 19 for any activity which the Advisor shall be required to
indemnify or hold harmless the Trust or the Controlled Partnership pursuant to
Paragraph 20. Any indemnification of the Advisor may be made only out of the net
assets of the Trust and the Controlled Partnership and not from Shareholders or
Limited Partners. Notwithstanding the foregoing, neither the Trust nor the
Controlled Partnership may indemnify or hold harmless the Advisor, its
Affiliates, or any of their respective officers, directors, members, partners or
employees in any manner that would be inconsistent with the 

18

provisions of Section II.G of the REIT Guidelines
adopted by the North American Securities Administrators Association (the
“Indemnification Guideline”) which is incorporated herein by
reference.

     20. INDEMNIFICATION
BY ADVISOR. The Advisor shall indemnify and hold harmless the Trust and the
Controlled Partnership, including their respective officers, trustees,
shareholders, members, partners and employees, from contract or other liability,
claims, damages, taxes or losses and related expenses including attorneys’ fees,
to the extent that such liability, claims, damages, taxes or losses and related
expenses are not fully reimbursed by insurance and are incurred by reason of the
Advisor’s bad faith, fraud, willful misfeasance, gross negligence or reckless
disregard of its duties, but the Advisor shall not be held responsible for any
action of the Board or any Trustee in following or declining to follow any
advice or recommendation given by the Advisor.

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

	To the Trustees and to  	  	Fidelity Property Income Trust 
  
	the Trust:  	  	82 Devonshire Street  
	  	  	Boston, MA 02109  
	  	  	Attention: John Barrie  
	  
	To the Controlled  	  	Fidelity Property Income Trust
      Limited  
	Partnership:  	  	Partnership  
	  	  	82 Devonshire Street  
	  	  	Boston, MA 02109  
	  	  	Attention: John Barrie  
	  
	To the Advisor:  	  	Pyramis Global Advisors Trust
      Company  
	  	  	82 Devonshire Street  
	  	  	Boston, MA 02109  
	  	  	Attention: John Barrie 
  

     Any party may at
any time give notice in writing to the other parties of a change in its address
for the purposes of this Paragraph 21.

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

     23. SEVERABILITY.
The provisions of this Agreement are independent of and severable from each
other, and no provision shall be affected or rendered invalid or 

19

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.

     24. CONSTRUCTION. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Maryland without regard to conflicts-of-law principles that would
require the application of any other law.

     25. 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. 

     26. INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with
respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver.

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

     28. TITLES NOT TO AFFECT INTERPRETATION. The titles of paragraphs and subparagraphs 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.

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

     30. INITIAL INVESTMENT. The Advisor or one of its Affiliates has made a capital contribution of $200,000 to the Controlled Partnership in exchange for partnership interests in the Controlled
Partnership. The Advisor may not sell any of such partnership interests while the Advisor acts in such advisory capacity to the Trust, provided, that such partnership interests may be transferred to Affiliates of the Advisor. The restrictions
included above shall not apply to any Shares, Securities or other interests in the 

20

Controlled Partnership that are currently held or
may be acquired by the Advisor or its Affiliates. The Advisor shall not vote any
Shares it now owns, or hereafter acquires, in any vote for the election of
Trustees or any vote regarding the approval or termination of any contract with
the Advisor or any of its Affiliates.

     31. SURVIVAL. The
provisions of Paragraphs 10, 18, 19 and 20 hereof shall survive the termination
of this Agreement.

	[signature page
      follows]

21

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

		 	FIDELITY PROPERTY INCOME  
		 	TRUST  
		 	  
		 	By:             
      ________________________
		 	 
                       Name:  
		 	 
                       Title:  
		 	  
		 	  
		 	FIDELITY PROPERTY INCOME  
		 	TRUST, LIMITED PARTNERSHIP  
		 	  
		 	By:             
      Fidelity Property Income Trust,  
		 	 
                     
       its General Partner 
    
		 	  
		 	By:             
      ________________________
		 	 
                       Name:  
		 	 
                       Title:  
		 	  
		 	  
		 	PYRAMIS GLOBAL ADVISORS  
		 	TRUST COMPANY  
		 	  
		 	By:             
      ________________________
		 	 
                       Name:  
		 	 
                       Title:  

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]