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Exhibit 10.1  

 
 

EXECUTIVE EMPLOYMENT AGREEMENT    
    

        This EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made effective this 10th day of June, 2004, by and between ULTIMATE ELECTRONICS, INC., a Delaware
corporation ("Employer"), and DAVID A. CARTER, a California resident ("Executive"). 

        WHEREAS,
Executive agrees to be employed by Employer for the period and upon and subject to the terms herein provided; and 

        WHEREAS,
Employer agrees to employ Executive for the period and upon and subject to the terms herein provided; 

        THEREFORE,
in consideration of the foregoing and of the mutual promises, covenants and agreements contained herein, the legal sufficiency of which is hereby acknowledged, and intending
to be legally bound, Employer and Executive agree: 

        1.    Employment.    Upon and subject to the terms provided herein, Employer agrees to employ Executive, and Executive
hereby agrees to be employed by Employer, as Employer's Senior Vice President—Finance and Chief Financial Officer, or other substantially similar position. 

        2.    Term of Employment.    Subject to the terms set forth in this Agreement, Employer agrees to employ Executive and
Executive hereby agrees to be employed by Employer for a period (the "Employment Period") commencing from the date hereof until May 15, 2005. 

        3.    Compensation.    

        (a)    Base Salary.    As compensation for the services rendered pursuant to this Agreement, Employer agrees to pay
Executive a base salary at an annual rate of not less than $250,000, payable in installments in accordance with Employer's standard payroll practices, subject to such payroll and withholding
deductions as are required by law or authorized by Executive. The amount of the base salary shall be reviewed periodically and may be increased at the sole discretion of Employer. 

        (b)    Bonus.    Executive shall be eligible for the annual incentive bonus opportunity offered by Employer to
employees at Executive's level. The amount of this bonus, as well as the criteria necessary to earn a bonus, may be changed at any time by Employer and shall be within the sole discretion of Employer,  provided,
however, that Executive is guaranteed a bonus of no less than $50,000 so long as this Agreement is not terminated, however such termination
occurs, prior to January 31, 2005. In the event of any conflict between this Agreement and any incentive bonus plan adopted by Employer for its officers and employees, this Agreement shall
control.    All bonuses paid pursuant to this Agreement will be subject to applicable withholdings and deductions and will be paid within ninety (90) days of Employer's fiscal year
end for which the bonus is earned. If Executive's employment terminates, voluntarily or involuntarily, prior to the last day of the fiscal year for which the bonus applies, Executive acknowledges that
he is not entitled to any bonus not yet paid at the time of the termination because any such unpaid bonus will not be earned, vested, due, or owing. Executive hereby expressly forfeits and waives any
such unpaid bonus. 

        (c)    Stock Options.    Executive will be eligible to participate in Employer's Amended and Restated 2000 Equity
Incentive Plan, as amended from time to time, or any successor plan adopted by Employer during the term of this Agreement (the "Equity Plan"). The number of options, vesting schedule, exercise price,
and all other terms and conditions of the stock options shall be set forth in an option agreement pursuant to the applicable plan and shall be commensurate with Executive's position, as determined by
the Compensation Committee of Employer's Board of Directors, in its sole discretion. Employer may, consistent with its obligations under such a plan or plans, amend or discontinue any or all stock
option plans at any time. 

 

Contingent
upon Executive executing this Agreement and as additional consideration for Executive executing this Agreement and being bound by the obligations set forth herein, Employer will grant
Executive on June 10, 2004, an option to purchase 20,000 shares of Employer's common stock, which shall be subject to the terms and conditions set forth in this Section 3(c), the Equity
Plan, and the Stock Option Agreement(s) attached hereto as Exhibit A. 

        (d)    Benefits; Gross-Up Payment.    Executive shall be entitled to participate in the employee benefits
plans offered to all employees of Employer. Employer shall not be required to establish or continue any benefit plans or take any action to cause Executive to be eligible for any such benefits on
a basis more favorable than that applicable to all its employees generally. In addition, Executive shall be entitled to receive the benefits listed on  Schedule A (the "Schedule A
Benefits") and an additional payment (a "Gross-Up Payment") in an amount such that after payment
by the Executive of all federal and state income taxes imposed upon the Gross-Up Payment (including any state and federal income taxes), the Executive shall retain an amount of the
Gross-Up Payment equal to the amount of federal and state income taxes imposed upon the Schedule A Benefits. The Executive shall receive a Gross-Up Payment by the end of
each calendar year with respects to the Schedule A Benefits actually received during the calendar year. The amount of the Gross-Up Payment shall be determined by Employer in its
reasonable discretion. 

        (e)    Office and Duties.    Executive shall report to the President and Chief Executive or such other supervisor as
designated by the President and Chief Executive Officer of Employer. Executive shall perform such tasks commensurate with this position as may from time to time be assigned by Employer. Executive
shall devote all business time, labor, skill, undivided attention and best ability to the performance of Executive's duties hereunder in a manner which will faithfully and diligently further the
business and interests of Employer. Executive shall perform substantially all of his duties in the state of Colorado. During the term of employment, Executive shall not directly or indirectly pursue
any other business activity without the prior written consent of Executive's supervisor, with the exception of passive personal investments not in breach of any other term or provision hereof.
Executive agrees to travel to whatever extent is reasonably necessary in the conduct of Employer's business, at Employer's expense and pursuant to Employer's standard policies and procedures. 

        4.    Termination of Employment.    Notwithstanding any other provision of this Agreement, Executive's employment may
be terminated as follows: 

        (a)    Expiration.    This Agreement may be terminated upon expiration of the term hereof. Following termination
pursuant to this Section 4(a), Employer's only obligation to Executive shall be to pay to Executive all accrued base salary, all accrued vacation time and any reasonable and necessary business
expenses incurred by Executive in connection with his duties, all to the date of termination and payable in a lump sum, less applicable deductions and withholdings. 

        (b)    Termination for Cause.    This Agreement may be terminated by Employer for Cause. For purposes of this
Agreement, "Cause" justifying the termination of this Agreement by Employer is defined as: (1) misconduct, malfeasance, or negligence relative to Employer's business; (2) failure or
refusal to perform the services required or to carry out directions by Employer with respect to the services rendered hereunder; (3) a material breach by Executive of any of the terms of this
Agreement; or (4) Executive's conviction of a crime that either results in imprisonment or involves embezzlement, dishonesty, or activities injurious to Employer or its reputation. Whether
Cause exists under this Agreement shall be determined by the Employer in its sole discretion. Following termination pursuant to this Section 4(b), Employer's only obligation to Executive shall
be to pay to Executive all accrued base salary, all accrued vacation time and any reasonable and necessary business expenses incurred by Executive in connection with his duties, all to the date of
termination and payable in a lump sum, less applicable deductions and withholdings. 

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        (c)    Disability.    This Agreement may be terminated by Employer upon at least thirty (30) days' written
notice if Executive is prevented by illness, accident or other disability (mental or physical) from performing the essential functions of the position for one or more periods cumulatively totaling
three (3) months during any consecutive twelve (12) month period. In the event this Agreement is terminated pursuant to this Section 4(c), Employer shall pay to Executive all
accrued base salary, all accrued vacation time and any reasonable and necessary business expenses incurred by Executive in connection with his duties, all to the date of termination and payable in a
lump sum, less applicable deductions and withholdings. In addition, Employer shall pay Executive severance payments in an amount equal to Executive's base salary for six (6) months following
termination, less applicable deductions and withholdings, with such amount to be paid to Executive in installments pursuant to Employer's standard payroll practices and on Employer's regular paydays
so long as Executive is not in breach of any term of this Agreement, including without limitation Sections 5, 6, and 7 hereof. Nothing herein shall prevent Employer from replacing Executive or
otherwise reassigning Executive's job duties consistent with applicable law in the event of disability under this Section 4(c). Severance payments made by Employer to Executive pursuant to this
Section 4(c) are conditioned on the Employer signing a Confidential Severance Agreement and Release substantially in the form attached hereto as  Exhibit B. 

        (d)    Death.    This Agreement shall be automatically terminated in the event of Executive's death during the term of
employment. In the event this Agreement terminates upon Executive's death, Employer shall pay Executive's estate or beneficiary, as applicable, (i) all accrued base salary, all accrued vacation
time and any reasonable and necessary business expenses incurred by Executive in connection with his duties, all to the date of termination and all payable in a lump sum, less applicable deductions
and withholdings; and (ii) severance payments in an amount equal to Executive's base salary for six (6) months following termination, payable in a lump sum, less applicable deductions
and withholdings. 

        (e)    Without Cause.    This Agreement may be terminated by Employer without Cause by giving notice at least thirty
(30) days prior to the effective termination date; provided that Employer pays Executive severance payments in an amount equal to Executive's
base salary for twelve (12) months, less applicable withholdings and deductions, after the date such notice is given. Such severance payments shall be paid in installments to Executive pursuant
to Employer's standard payroll practices and on
Employer's regular paydays. Such severance payments shall be paid so long as Executive is not in breach of any term of this Agreement, including, without limitation, Sections 5, 6, and 7 hereof. In
addition, Employer shall pay to Executive all accrued base salary, all accrued vacation time and any reasonable and necessary business expenses incurred by Executive in connection with his duties, all
to the date of termination and payable in a lump sum, less applicable deductions and withholdings. Severance payments made by Employer to Executive pursuant to this Section 4(e) are conditioned
on the Employer signing a Confidential Severance Agreement and Release substantially in the form attached hereto as Exhibit B. 

        (f)    Material Breach.    This Agreement may be terminated by Executive for a material breach by Employer of any of
the terms of this Agreement, upon thirty (30) days' written notice specifying the breach, and failure of Employer to cure the breach within the 30-day notice period. Following
termination pursuant to this Section 4(f), Employer shall pay to Executive severance payments in an amount equal to Executive's base salary for twelve (12) months, less applicable
withholdings and deductions, after the date such notice is given. Such severance payments shall be paid in installments to Executive pursuant to Employer's standard payroll practices and on Employer's
regular paydays. Such severance payments shall be paid so long as Executive is not in breach of any term of this Agreement, including, without limitation, Sections 5, 6, and 7 hereof. In addition,
Employer shall pay to Executive all accrued base salary, all accrued vacation time and any reasonable and necessary business expenses incurred by Executive in connection with his duties, all 

3

 

to
the date of termination and payable in a lump sum, less applicable deductions and withholdings. Severance payments made by Employer to Executive pursuant to this Section 4(f) are conditioned
on the Employer signing a Confidential Severance Agreement and Release substantially in the form attached hereto as Exhibit B. 

        (g)    Resignation.    This Agreement may be terminated by Executive for any reason or no reason at all by giving
notice to Employer of Executive's resignation at least thirty (30) days prior to the effective resignation date. Following termination pursuant to this Section 4(g), Employer's only
obligation to Executive shall be to pay to Executive all accrued base salary, all accrued vacation time and any reasonable and necessary business expenses incurred by Executive in connection with his
duties, all to the date of termination and payable in a lump sum, less applicable deductions and withholdings; provided, however, that if Executive resigns for Good Reason (as defined below), then the
provisions of Section 4(h) shall be followed. 

        (h)    Termination Upon a Change of Control.    In the event of a Termination Upon a Change of Control (as defined
below), Employer's only obligation to Executive shall be to pay Executive severance payments in an amount equal to Executive's base salary for twelve (12) months, less applicable withholdings
and deductions, after the date such notice is given. Such severance payments shall be paid in installments to Executive pursuant to Employer's standard payroll practices and on Employer's regular
paydays. Such severance payments shall be paid so long as Executive is not in breach of any term of this Agreement, including, without limitation, Sections 5, 6, and 7 hereof. In addition, Employer
shall pay to Executive all accrued base salary, all accrued vacation time and any reasonable and necessary business expenses incurred by Executive in connection with his duties, all to the date of
termination and payable in a
lump sum, less applicable deductions and withholdings. Severance payments made by Employer to Executive pursuant to this Section 4(h) are conditioned on the Employer signing a Confidential
Severance Agreement and Release substantially in the form attached hereto as Exhibit B. 

          (i)  For
purposes of this Agreement, a "Termination Upon a Change of Control" shall mean a termination by Employer or any successor thereto of Executive's employment with
Employer or such successor without Cause (as defined in Section 4(b)), or Executive's termination for Good Reason (as defined below) of Executive's employment with Employer or any successor
thereto within twelve (12) months from the date on which any of the following, each of which shall be deemed a "Change of Control," occurs: 

        (1)   any
"person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934), other than William J. Pearse, a trustee or other
fiduciary holding securities under an employee benefit plan of Employer, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly,
of more than 331/3% of the then outstanding voting stock of Employer; 

        (2)   at
any time during any period of three consecutive years (not including any period prior to the Effective Date), individuals who at the beginning of such period
constitute the Board (and any new director whose election by the Board or whose nomination for election by Employer's stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a
majority thereof; or 

        (3)   the
stockholders of Employer approve a merger or consolidation of Employer with any other corporation, other than a merger or consolidation which would result in the
voting securities of Employer outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at
least 51% of the combined voting power of the voting securities of Employer or such 

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surviving
entity outstanding immediately after such merger or consolidation, or the stockholders approve a plan of complete liquidation of Employer or an agreement for the sale or disposition by
Employer of all or substantially all of Employer's assets. 

         (ii)  For
purposes of this Agreement, "Good Reason" shall include, but not be limited to, any of the following (without Executive's express written consent): 

        (1)   the
assignment to Executive by Employer of duties inconsistent with, or a substantial diminution in the nature or status of, Executive's responsibilities as in effect
immediately prior to a Change in Control, other than any changes primarily attributable to the fact that Employer's securities are no longer publicly traded; 

        (2)   a
failure by Employer to comply with any of the provisions of Sections 3(a), 3(b), or 3(c) other than an isolated, insubstantial, and inadvertent failure not occurring
in bad faith and which is remedied by Employer promptly after receipt of notice thereof given by Executive; 

        (3)   a
relocation of Employer's principal offices to a location more than sixty (60) miles away from the Employer's current Thornton, Colorado location, or Executive's
relocation to any place more than sixty (60) miles away from the Employer's current Thornton, Colorado offices, except for reasonably required travel by Executive on Employer's business; 

        (4)   any
material breach by Employer of any provision of this Agreement, if such material breach has not been cured within thirty (30) days following written notice of
such breach by Executive to Employer setting forth with specificity the nature of the breach; or 

        (5)   any
failure by Employer to obtain the assumption and performance of this Agreement by any successor (by merger, consolidation or otherwise) or assign of Employer. 

        (iii)  Notwithstanding
anything else in this Agreement, and solely in the event of a Termination Upon a Change of Control, the aggregate of the amount of severance
compensation paid to Executive under this Agreement or otherwise, but exclusive of any payments to Executive by virtue of Executive's exercise of any right or payment of any kind under the Equity Plan
upon a Change in Control (as defined in the Equity Plan), shall not include any amount that Employer is prohibited from deducting for federal income tax purposes by virtue of Section 280G of
the Internal Revenue Code, as amended or any successor provision. The determination of the amount Employer is prohibited from deducting for federal income tax purposes by virtue of Section 280G
of the Code shall be made by an accounting firm designated by Employer, in its sole discretion, and such determination shall be made in such accounting firm's sole discretion. 

        5.    Proprietary Information.    

        (a)   Executive
represents and warrants to Employer that (i) Executive is not subject to any limitation or agreement restricting employment by Employer or performance
of Executive's duties hereunder, and (ii) neither Executive nor any third party has any right or claim to Executive's work produced on behalf of Employer or using the property, personnel, or
facilities of Employer. Executive shall not misappropriate proprietary rights of Employer or any third party. 

        (b)   Executive
further agrees not to make, use, disclose to any third party, or permit to be made, used, or disclosed, any records, plans, papers, articles, notes, memoranda,
reports, lists, records, drawings, sketches, specifications, software programs, data, or other materials of any nature relating to any matter within the scope of the business of Employer or concerning
any of its dealings or affairs ("Materials"), whether or not developed, in whole or in part, by Executive and whether or not embodying Confidential Information (defined below), otherwise than for the
benefit of Employer. Executive shall not, after the termination of employment, use, disclose, or permit to be used or disclosed, any such Materials, it being agreed that all such Materials shall be
and remain the sole and 

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exclusive
property of Employer. Immediately upon the termination of employment, Executive shall deliver all such Materials, and all copies thereof, to Employer, at its designated office. 

        6.    Non-Competition; Non-Solicitation; Anti-Raiding;
Non-Disparagement.    Without the prior written approval of the Chief Executive Officer or the President of Employer, Executive shall not, directly or
indirectly, during his employment and until the end of one (1) year after termination of employment (however such termination occurs, including,
without limitation, termination pursuant to Section 4(a), 4(b), 4(c), 4(e), 4(f), 4(g), or 4(h)), 

        (a)   Engage
in a "Competing Business" in the "Territory", as those terms are defined below, whether as a sole proprietor, partner, corporate officer, employee, director,
shareholder, consultant, agent, independent contractor, trustee, or in any other manner by which Executive holds any beneficial interest in a Competing Business, derives any income from any interest
in a Competing Business, or provides any service or assistance to a Competing Business. "Competing Business" shall mean any retailer of consumer electronics merchandise or any business that markets or
sells goods or services in any line of business competitive with any business of Employer or any of its Affiliates (defined below), as conducted or under development at any time during the term of
employment. Competing Businesses shall include, but are not limited to, the companies identified on Exhibit C. "Affiliates" shall mean any entity
controlled by or under common control with Employer or any joint venture, partnership or other similar entity to which Employer is a party. "Territory" shall mean anywhere in the continental United
States. The provisions of this Section 6 will not restrict Executive from owning less than five percent of the outstanding stock of a publicly-traded corporation engaged in a Competing
Business; 

        (b)   (i) Contact
or solicit, or direct or assist others to contact or solicit, for the purpose of promoting any person's or entity's attempt to compete with Employer
or any of its Affiliates, in any business carried on by Employer or any of its Affiliates during the period in which Executive was an employee of Employer, any customers, suppliers, independent
contractors, vendors, or other business associates of Employer or any of its Affiliates that were existing or identified prospective customers, suppliers, independent contractors, vendors, or
associates during such period, or (ii) otherwise interfere in any way in the relationships between Employer or any of its Affiliates and their customers, suppliers, independent contractors,
vendors, and business associates; 

        (c)   (i) Solicit,
offer employment to, otherwise attempt to hire, or assist in the hiring of any employee or officer of Employer or any of its Affiliates;
(ii) encourage, induce, assist or assist others in inducing any such person to terminate his or her employment with Employer or any of its Affiliates; or (iii) in any way interfere with
the relationship between Employer or any of its Affiliates and their employees; or 

        (d)   Make
any public statement or perform or do any other act prejudicial or injurious to the reputation or goodwill of Employer or any of its Affiliates or otherwise
interfere with the business of Employer or any of its Affiliates. 

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        7.    Confidentiality.    

        (a)   The
term "Confidential Information" shall include, but not be limited to, the whole or any portion or phase of (i) any confidential, or proprietary or trade
secret, technical, business, marketing or financial information, whether pertaining to (1) Employer or its Affiliates, (2) its or their clients and customers, or (3) any third
party which Employer or its Affiliates is under an obligation to keep confidential including, but not limited to, methods, know-how, techniques, systems, processes, software programs,
works of authorship, customer lists, supplier lists, projects, plans, and proposals, and (ii) any software programs and programming prepared for Employer's benefit whether or not developed, in
whole or in part by Executive. For purposes of this Agreement, "Confidential Information" shall include, but shall not be limited to, strategies, analysis, concepts, ideas, or plans; operating
techniques; demographic and trade area information; prospective site locations know-how; improvements; discoveries, developments; designs, techniques, procedures; methods; machinery,
devices; drawings; specifications; forecasts; new products; research data, reports, or records; customer information including, but not limited to, present or prospective customer lists, profiles, or
preferences; marketing or business development plans, strategies, analysis, concepts or ideas; dealer agreements and information; contracts; general financial information about or proprietary to
Employer, including, but not limited to, unpublished financial statements, budgets, projections, licenses, costs, and fees; pricing strategies and discounts; personnel information; and any and all
other trade secrets, trade dress, or proprietary information, and all concepts or ideas in or reasonably related to Employer's business. All such Confidential Information is extremely valuable and is
intended to be kept secret to Employer; is the sole and exclusive property of Employer or its clients and customers; and, is subject to the restrictive covenants set forth herein. The term
Confidential Information shall not include any information generally available to the public or publicly disclosed by Employer (other than by the act or omission of Executive), information disclosed
to Executive by a third party under no duty of confidentiality to Employer or its Affiliates, or information required by law or court order to be disclosed by Executive. 

        (b)   Executive
shall not, without Employer's prior written approval, use, disclose, or reveal to any person or entity any of Employer's Confidential Information, except as
required in the ordinary course of performing duties hereunder. Executive shall not use or attempt to use any Confidential Information in any manner which has the possibility of injuring or causing
loss, whether directly or indirectly, to Employer or any of its Affiliates. 

        8.    Acknowledgments.    Executive acknowledges that the covenants contained in Sections 5, 6, and 7, including those
related to duration, geographic scope, and the scope of prohibited conduct, are reasonable and necessary to protect the legitimate interests of Employer. Executive acknowledges that he is among
Employer's executive personnel, management personnel, or officers and employees who constitute professional staff to executive and management personnel (as defined by C.R.S.
8-2-113(2)(d) because Executive's responsibilities are supervisory and managerial and include, without limitation, hiring and firing employees, supervising employees,
negotiating contracts on behalf of Employer and signing contracts on behalf of Employer). He further acknowledges that the covenants contained in Sections 5, 6, and 7 are designed, intended, and
necessary to protect, and are reasonably related to the protection of, Employer's trade secrets, to which he will be exposed and with which he will be entrusted. Specifically, without limitation,
Executive is entrusted with trade secrets regarding: the strategic planning initiatives; business development plans; budgets; financial information; sales training; management training; sales
agreements and compensation; merchandising programs; future store plans; future marketing plans; sales and profit information; pricing strategies and discounts; operational strategy and procedures;
install training program; install marketing; install compensation; builder marketing and business plan; builder packaging; design center development; management information system; and install
standards and practices. Executive understands that any breach of Sections 5 or 7 will also constitute a misappropriation of Employer's proprietary rights, and may 

7

 

constitute
a theft of Employer's trade secrets under applicable local, state, and federal statutes, and will result in a claim for injunctive relief, damages, and/or criminal sanctions and penalties
against Executive by Employer, and possibly others. 

        9.    Forfeiture of Severance Payments.    If Executive breaches Sections 5, 6, or 7 of this Agreement during the term
that severance payments are made pursuant to Sections 4(c), 4(e), 4(f), or 4(h) of this Agreement, Executive shall pay back to Employer all severance payments received to date. Nothing contained in
this Section 9 shall be construed as prohibiting Employer from pursuing any other remedies available to it in the event of the breach of Sections 5, 6, or 7, including the equitable remedies
set forth in Section 12. 

        10.    Forfeiture of Profits Related to Option Exercises.    If Executive breaches Section 5, 6, or 7 of this
Agreement, Employer shall have the right to repurchase any or all shares of common stock of Employer purchased by the Executive upon the exercise of options within the twelve (12)-month period
immediately preceding the breach at the exercise price of the option, or if the Executive no longer holds such shares of common stock purchased on exercise of options, the Executive shall pay to
Employer an amount equal to the gross profits that Employer received on the sale of such shares calculated as the aggregate sale price of such shares of common stock less the exercise price. Nothing
contained in this Section 10 shall be construed as prohibiting Employer from pursuing any other remedies available to it in the event of the breach of Sections 5, 6, or 7, including the
equitable remedies set forth in Section 12. 

        11.    Non-exclusivity of Rights.    Amounts that are vested benefits or that Executive is otherwise
entitled to receive under any plan, policy or program of, or contract or agreement with
Employer at or subsequent to termination of employment (however such termination occurs, including, without limitation, termination pursuant to Section 4(a), 4(b), 4(c), 4(e), 4(f), 4(g), or
4(h)) shall be payable in accordance with such plan, policy or program of, or any contract or agreement except as explicitly modified by this Agreement. 

        12.    Equitable Remedies.    The services to be rendered by Executive and the Confidential Information entrusted to
Executive as a result of his employment by Employer are of a unique and special character, and any breach of Sections 5, 6, or 7 will cause Employer immediate and irreparable injury and damage, for
which monetary relief would be inadequate or difficult to quantify. Employer will be entitled to, in addition to all other remedies available to it, injunctive relief and specific performance to
prevent a breach and to secure the enforcement of Sections 5, 6, or 7. Executive acknowledges that injunctive relief may be granted immediately upon the commencement of any such action without notice
to Executive and in addition may recover monetary damages. In the event a court requires posting of a bond, the parties agree to a maximum $5,000 bond. Executive further acknowledges that his duties
under this Agreement shall survive termination of his employment, whether the termination is voluntary or involuntary, rightful or wrongful, and shall continue until Employer consents in writing to
the release of Executive's obligations under this Agreement. The parties further agree that the provisions of Sections 5, 6, and 7 are separate from and independent of the remainder of this Agreement
and that these provisions are specifically enforceable by Employer notwithstanding any claim made by Executive against Employer. 

        13.    Attorney's Fees.    In the event Executive breaches, or threatens to breach, any provision of this Agreement,
Executive acknowledges that he shall be solely and fully responsible for all fees and costs, including without limitation, all attorney's fees and costs, incurred by Employer in enforcing this
Agreement if Employer is the prevailing party in any litigation or if there is any settlement between the parties relating to this Agreement. 

        14.    Entire Agreement; Amendments.    This Agreement (including all exhibits) and the Ultimate
Electronics, Inc. Indemnification Agreement dated June 9, 2004, constitute the entire understanding between the parties with respect to the subject matter herein and therein, and they
supersede any prior 

8

 

or
contemporaneous understandings or agreements. This Agreement may be amended, supplemented, or terminated only by a written instrument duly executed by each of the parties. 

        15.    Headings.    The headings in this Agreement are for convenience of reference only and shall not affect its
interpretation. References to Sections are to Sections hereof. 

        16.    Gender; Number.    Words of gender may be read as masculine, feminine, or neuter, as required by context. Words
of number may be read as singular or plural, as required by context. 

        17.    Severability.    The covenants in this Agreement shall be construed as independent of one another, and as
obligations distinct from one another and any other contract between Executive and Employer. If any provision of this Agreement is held illegal, invalid, or unenforceable, such illegality, invalidity,
or unenforceability shall not affect any other provisions hereof. It is the intention of the parties that in the event any provision is held illegal, invalid, or unenforceable, that such provision be
limited so as to effect the intent of the parties to the fullest extent permitted by applicable law. Any claim by Executive against Employer shall not constitute a defense to enforcement by Employer
of this Agreement. 

        18.    Survival.    The provisions of Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, 18, 19, 20, 21, 22, and 23
shall survive the termination of this Agreement. 

        19.    Notices.    All notices, demands, waivers, consents, approvals, or other communications required hereunder
shall be in writing and shall be deemed to have been given if delivered personally, if sent by facsimile with confirmation of receipt, if sent by certified or registered mail, postage prepaid, return
receipt requested, or if sent by same day or overnight courier service to the following addresses: 

        If
to Employer, to: 

Ultimate
Electronics, Inc.

321 W. 84th Avenue, Suite A

Thornton, CO 80260

Attention: President and Chief Executive Officer

Facsimile: 303-412-2502 

        With
a copy to: 

Laura
B. Gill, Esq.

Davis, Graham & Stubbs, LLP

1550 17th Street, Suite 500

Denver, CO 80202

Facsimile: 303-893-1379 

        If
to Executive, to: 

David
A. Carter

c/o Ultimate Electronics, Inc.

321 W. 84th Avenue, Suite A

Thornton, CO 80260

Facsimile: 303-412-2502 

Notice
of any change in any such address shall also be given in the manner set forth above. Whenever the giving of notice is required, the giving of such notice may be waived by the party entitled to
receive such notice. 

        20.    Waiver.    The failure of any party to insist upon strict performance of any of the terms or conditions of this
Agreement shall not constitute a waiver of any of such party's rights hereunder. 

9

 

        21.    Assignment.    Other than as provided below, neither party may assign any rights or delegate any of obligations
hereunder without the prior written consent of the other party, and such purported assignment or delegation shall be void; provided that Employer may assign the Agreement to any entity that purchases
the stock or assets of, or merges with, Employer or any Affiliate. This Agreement binds, inures to the benefit of, and is enforceable by the successors and permitted assigns of the parties and does
not confer any rights on any other persons or entities. 

        22.    Governing Law.    This Agreement shall be construed and enforced in accordance with Colorado law except for any
Colorado conflict-of-law principle that might require the application of the laws of another jurisdiction. 

        23.    Submission to Jurisdiction: Service: Waivers.    With respect to any claim arising out of this Agreement, each
party hereto (a) irrevocably submits, for itself and its property, to the jurisdiction of the state court located in the City and County of Denver, Colorado, the federal court located in
Denver, Colorado, and appellate courts therefrom, (b) agrees that the venue for any suit, action or proceeding arising out of or relating to this Agreement shall be exclusive to and limited to
such courts, and (c) irrevocably waives any objection it may have at any time to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in
any such court, irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum and further irrevocably waives the right to
object, with respect to such claim, suit, action or proceeding brought in any such court that such court does not have jurisdiction over it. Each party irrevocably consents to the service of process
in any suit, action or proceeding in any of the aforesaid
courts by the mailing of copies of process to the other party or parties hereto, by certified or registered mail at the address specified in Section 19. 

[SIGNATURE
PAGE FOLLOWS] 

10

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. 

	 	 	EMPLOYER:
	

 	
 	

ULTIMATE ELECTRONICS, INC.
	

 	
 	

By:	

/s/  DAVID J. WORKMAN      

	 	 	Name: David J. Workman

Title: President and Chief Executive Officer
	

 	
 	

EXECUTIVE:
	

 	
 	

By:	

/s/  DAVID A. CARTER      

	 	 	Name: David A. Carter

11

 
 

SCHEDULE A    
    

        Temporary Housing:    Executive is eligible to receive reimbursements for housing expenses up to $1,200/month for a total of
twelve (12) months for temporary housing, in lieu of receiving relocation expenses. Executive must submit all temporary housing reimbursement requests to Employer's Human Resources department. 

        Expenses:    Executive is entitled to a maximum of $25/each working business day in Denver for food and beverage reimbursement.
Executive shall submit all food and beverage reimbursement requests to Employer's Accounts Payable department on a monthly basis. 

        Travel:    Executive is entitled to one economy, round trip ticket between Denver and the San Francisco Bay Area each week for a
total of twelve months. Executive agrees to use his best efforts to book such tickets at the lowest available fare. The ticket may be used, in Executive's discretion, by either Executive or his
spouse. 

        Vacation and Holidays:    Executive is eligible for six (6) paid holidays and three (3) weeks of vacation each
year, subject to the rules set forth in Employer's Vacation Policy. 

QuickLinks

EXECUTIVE EMPLOYMENT AGREEMENT

SCHEDULE A<Page>

                                                                    Exhibit 10.5

                           ADVISORY SERVICES AGREEMENT

     ADVISORY SERVICES AGREEMENT (the "Agreement"), made as of April 1, 2004, by
and between BOSTON CAPITAL REAL ESTATE INVESTMENT TRUST, INC., a Maryland
corporation (the "Company"), and BOSTON CAPITAL REIT ADVISORS, LLC, a Delaware
limited liability company (the "Advisor").

                                   WITNESSETH:

     WHEREAS, the Company will file with the Securities and Exchange Commission
a registration statement on Form S-11 (the "Registration Statement"), to
register its shares of common stock, par value $0.001 per share (the "Shares"),
to be offered to the public, the proceeds from which will be invested by the
Company, and the Company may thereafter sell additional securities or otherwise
raise additional capital; and

     WHEREAS, the Company intends to qualify as a "real estate investment
trust", as defined in the Internal Revenue Code of 1986, as amended (the
"Code"), and to invest its funds in investments permitted by the terms of the
Registration Statement; and

     WHEREAS, the Company desires to avail itself of the experience, resources,
advice, assistance and certain facilities available to the Advisor and to have
the Advisor undertake the duties and responsibilities hereinafter set forth, on
behalf of and subject to the supervision of the Company's Board of Directors,
all as provided herein; and

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

     NOW, THEREFORE, the parties hereto agree as follows:

     1.     APPOINTMENT. The Company hereby appoints the Advisor to serve as its
            investment and management advisor on the terms and conditions set
            forth in this Agreement, and the Advisor hereby accepts such
            appointment.

     2.     DUTIES OF THE ADVISOR. The Advisor undertakes to use its best
            efforts to present to the Company potential investment opportunities
            primarily in real property and other real estate investments as well
            as provide a continuing and suitable investment program consistent
            with the investment policies and objectives of the Company as
            determined and adopted from time to time by the Board of Directors.
            In performance of this undertaking, subject to the supervision and
            direction of the Board of Directors, and consistent with the
            Registration Statement, the Advisor shall, pursuant to delegated
            authority:

            (a)    obtain or provide such services as may be required to
                   administer the daily operations of the Company;

            (b)    identify investment opportunities for the Company which are
                   consistent with its investment objectives and policies;

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                                        2

            (c)    serve as the Company's investment and financial advisor and
                   provide reports with respect to the Company's portfolio of
                   investments, including, but not limited to, the making of
                   investments in real properties and other real estate
                   investments, as described in the Registration Statement;

            (d)    on behalf of the Company, investigate, select, engage and
                   conduct relations with such persons as the Advisor deems
                   necessary to the proper performance of its obligations
                   hereunder, including, but not limited to, consultants,
                   investors, builders, developers, banks, borrowers, lenders,
                   fiduciaries, financial service companies, mortgagors,
                   brokers, accountants, attorneys, appraisers and others,
                   including its and the Company's affiliates;

            (e)    consult with the Company's officers and directors and assist
                   the Company's Board of Directors in the formulation and
                   implementation of the Company's investment and other
                   policies, and furnish the officers and directors with advice
                   and recommendations concerning the making of investments
                   consistent with the investment policies and objectives of the
                   Company;

            (f)    structure and negotiate the terms of investments in real
                   properties and other real estate investments and obtain the
                   Board of Directors' approval of investments as provided in
                   the Registration Statement, but always consistent with the
                   investment policies and objectives of the Company;

            (g)    obtain from third parties or its affiliates, property
                   management services for the Company's investments in real
                   property;

            (h)    obtain for or provide to the Company such services as may be
                   required in acquiring, managing and disposing of investments,
                   including, but not limited to, the negotiation of purchase
                   contracts and services related to the acquisition of real
                   property and other real estate investments by the Company and
                   its affiliates, disbursing and collecting the funds of the
                   Company, paying the debts and fulfilling the obligations of
                   the Company and handling, prosecuting and settling any claims
                   of the Company and such other services as the Company may
                   require;

            (i)    advise the Company concerning its negotiations with
                   investment banking firms, securities brokers or dealers and
                   other institutions or investors for public or private sales
                   of the Company's securities, or in obtaining investments for
                   the Company, but in no event in such a way that the Advisor
                   could be deemed to be acting as a dealer or underwriter as
                   those terms are defined in the Securities Act of 1933, as
                   amended;

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                                        3

            (j)    obtain or perform current appraisals for each potential
                   investment in real property or other real estate investment;

            (k)    do all things necessary to assure its ability to render the
                   services contemplated herein, including providing the office
                   space, furnishings and personnel necessary for the
                   performance of the foregoing services as Advisor;

            (l)    from time to time, or at any time reasonably requested by the
                   Company's Board of Directors, make reports to the Board of
                   Directors of its performance of the foregoing services; and

            (m)    within 30 days after the end of each fiscal quarter of the
                   Company, submit to the Company's Board of Directors a
                   statement of the Company's sources of income during such
                   fiscal quarter and make recommendations concerning changes,
                   if any, in the Company's investments to permit the Company to
                   satisfy the requirements of Sections 856(c)(2), 856(c)(3) and
                   856(c)(4) of the Code (such statement of income may be based
                   upon information supplied by independent contractors of the
                   Company to the extent applicable).

     3.     NO PARTNERSHIP OR JOINT VENTURE. The Company and the Advisor are not
            partners or joint venturers with each other and nothing herein shall
            be construed so as to make them such partners or joint venturers or
            impose any liability as such on either of them or their affiliates.

     4.     CERTAIN GUIDELINES. The Advisor shall endeavor to ensure, with
            respect to the Company's investments, that: (a) an appropriate
            policy of title insurance is obtained with respect to any real
            property investment (singly, a "Property," and collectively, the
            "Properties") acquired by the Company, or an opinion of counsel as
            to such title is obtained; (b) any Property acquired by the Company
            is duly insured against loss or damage by fire, with extended
            coverage, and against such other insurable hazards and risks as are
            customary and appropriate in the circumstances; (c) a majority of
            the Company's Board of Directors (including a majority of the
            Independent Directors, as defined below) approves, in advance, any
            investment (other than with respect to the initial Properties (as
            described in the Registration Statement) by the Company, on the one
            hand, with the Advisor or any of its affiliates, on the other hand;
            (d) the Company does not make any loans to the Advisor or any of its
            affiliates; (e) the Company's ratio of debt-to-total-assets, at the
            time of the incurrence of any indebtedness, does not exceed 75%; and
            (f) investments in any one Property acquired after the acquisition
            of the initial Properties described in the Registration Statement do
            not exceed 25% of the value of the Company's total assets at the
            time of its acquisition, provided, however, that this limitation
            shall not preclude the acquisition of multiple-building Properties
            or a group of Properties in a purchase from a single seller in
            transactions that exceed this limit. An Independent Director is a
            Director who is not and within the last two years has not been
            directly or indirectly associated

<Page>

                                        4

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

     5.     REIT QUALIFICATION. Notwithstanding anything to the contrary in this
            Agreement, the Advisor shall use its best efforts to refrain from
            taking any action (including, without limitation, the furnishing or
            rendering of services to tenants of a Property or managing or
            operating a Property) which, in its judgment, made in good faith and
            with the exercise of reasonable care, would: (a) adversely affect
            the status of the Company as a "real estate investment trust" under
            the Code and all rules and regulations promulgated thereunder; (b)
            violate any law, rule, regulation or statement of policy of any
            governmental body or agency having jurisdiction over the Company or
            over its securities, of which the Advisor should reasonably be
            aware; or (c) otherwise not be permitted by the Registration
            Statement or the Company's Articles of Incorporation or Bylaws, each
            as they may be amended from time to time, except if such action
            shall be ordered by the Company's Board of Directors, in which event
            the Advisor shall promptly notify the Board of Directors of the
            Advisor's judgment that such action would adversely affect the
            status of the Company as a "real estate investment trust" under the
            Code and shall refrain from taking such action, unless, but only to
            the extent that, the Advisor receives specific written instructions
            from the Board of Directors expressly ordering that the action be
            taken, notwithstanding such notification by it to the Board of
            Directors. In such event the Advisor shall have no liability for
            acting in accordance with the specific written instructions of the
            Directors so given.

     6.     INVESTMENT COMPANY STATUS. Notwithstanding anything to the contrary
            in this Agreement, the Advisor shall use its best efforts to refrain
            from any action which, in its judgment, made in good faith and in
            the exercise of reasonable care, would cause the Company to be
            required to register as an investment company under the Investment
            Company Act of 1940, as amended, except where such action has been
            ordered by the Company's Board of Directors, in which event the
            Advisor shall promptly notify the Board of Directors of the
            Advisor's judgment that such action might require such registration
            and shall refrain from taking such action, unless, but only to the
            extent that, the Advisor receives specific written instructions from
            the Board of Directors expressly ordering that

<Page>

                                        5

            the actions be taken, notwithstanding such notification by it to the
            Board of Directors. In such event, the Advisor shall have no
            liability for acting in accordance with the specific written
            instructions of the Board of Directors so given.

     7.     BANK ACCOUNTS. The Advisor may establish and maintain one or more
            bank accounts in its own name or in the name of the Company 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
            Company, under such terms and conditions as the Company's Board of
            Directors may approve. However, the Advisor shall not commingle any
            of the funds in such account with those of the Advisor or of other
            entities managed by the Advisor. Further, the Advisor shall, from
            time to time, render to the Board of Directors and to the auditors
            of the Company a complete accounting of such collections and
            disbursements.

     8.     INFORMATION FURNISHED TO THE ADVISOR. The Company's Board of
            Directors shall at all times keep the Advisor fully informed
            concerning the investment and capitalization policies of the Company
            and the intentions of the Board of Directors concerning the future
            activities and investments of the Company. The Company shall furnish
            the Advisor with a certified copy of all financial statements, a
            signed copy of each report prepared by independent certified public
            accountants and such other information with regard to the Company's
            affairs as the Advisor may from time to time reasonably request.

     9.     CONSULTATION AND ADVICE. In addition to the services described
            above, the Advisor shall consult with the Company's Board of
            Directors and shall, at the request of the Board, furnish advice and
            recommendations with respect to other aspects of the business and
            affairs of the Company.

     10.    COMPENSATION. For rendering the services described herein, the
            Company shall pay to the Advisor the following (with the approval of
            the Company's Independent Directors and the concurrence of the
            Advisor, the fees referred to in this Section 10 paid by the Company
            to the Advisor in Shares at net asset value or by Company debt
            instruments):

            (a)    ORGANIZATION AND OFFERING EXPENSES. The Company shall
                   reimburse the Advisor for all organization and offering
                   expenses advanced by the Advisor up to a maximum of 3.0% of
                   Gross Offering Proceeds (as defined below).

            (b)    ASSET MANAGEMENT FEE. The Company shall pay to the Advisor as
                   compensation for the advisory services rendered to the
                   Company under Paragraph 2 above a monthly asset management
                   fee in an amount equal to 1/12th of 0.75% of the Company's
                   Real Estate Asset Value (as defined below) (the "Asset
                   Management Fee") as of the end of the preceding month. Real
                   Estate Asset Value equals the amount actually paid or
                   allocated to the purchase, development, construction or
                   improvement of

<Page>

                                        6

                   the Properties wholly-owned by the Company, including the
                   outstanding principal amount of any mortgage indebtedness on
                   the Properties assumed upon the purchase of the properties,
                   and, in the case of Properties owned by any joint venture or
                   partnership in which the Company is a co-venturer or partner,
                   the Company's portion of such amount actually paid or
                   allocated with respect to such Properties, exclusive of
                   Acquisition Fees and Acquisition Expenses (each as defined
                   below). The Asset Management Fee shall be payable monthly on
                   the last day of such month, or the first business day
                   following the last day of such month, and will be based on
                   the Real Estate Asset Value determined on the last day of the
                   prior month. The Asset Management Fee, which will not exceed
                   fees which are competitive for similar services in the same
                   geographic area, may or may not be taken, in whole or in part
                   as to any year, in the sole discretion of the Advisor. All or
                   any portion of the Asset Management Fee not taken as to any
                   fiscal year shall be deferred without interest and may be
                   taken in such other fiscal year as the Advisor shall
                   determine.

            (c)    ACQUISITION FEE. The Advisor may receive, as compensation
                   payable by the Company for services rendered in connection
                   with the investigation, selection and acquisition (by
                   purchase, investment or exchange) of Properties, acquisition
                   fees in an amount equal to up to 3.0% of Gross Offering
                   Proceeds ("Acquisition Fees") and acquisition expenses in an
                   amount equal to up to 0.5% of Gross Offering Proceeds
                   ("Acquisition Expenses"). In no event shall Acquisition
                   Expenses exceed the lesser of the actual cost of such
                   expenses or 90% of competitive rates charged by unaffiliated
                   persons providing similar services. Gross Offering Proceeds
                   shall mean the aggregate purchase price of all Shares sold
                   for the account of the Company through the offering
                   contemplated by the Registration Statement, without deduction
                   for selling commissions, volume discounts, dealer-manager
                   fees or organization and offering expenses. In no event shall
                   the Advisor receive Acquisition Fees with respect to the
                   acquisition of Properties for which it did not render such
                   services and for which acquisition fees have been previously
                   paid or are owed to another affiliate of the Company. For the
                   purpose of computing Gross Offering Proceeds, the purchase
                   price of any Share sold pursuant to the Registration
                   Statement for which reduced selling commissions are paid to
                   the dealer-manager or any other broker-dealer (where net
                   proceeds as to the Company are not reduced) shall be deemed
                   to be $10.00. In connection with the purchase of a Property,
                   the total of all Acquisition Fees and Acquisition Expenses
                   shall not exceed an amount equal to 6.0% of the contract
                   price of the Property.

            (d)    SUBORDINATED DISPOSITION FEE. If the Advisor or an affiliate
                   provides a substantial amount of the services (as determined
                   by a majority of the Company's Independent Directors) in
                   connection with the sale of one or more Properties, the
                   Advisor or an affiliate shall receive a subordinated

<Page>

                                        7

                   disposition fee equal to the lesser of (i) one-half of a
                   competitive real estate commission, or (ii) 3.0% of the sales
                   price of such Property or Properties ("Subordinated
                   Disposition Fee"). The Subordinated Disposition Fee will be
                   paid only if stockholders have received total dividends in an
                   amount equal to 100% of their aggregate invested capital plus
                   a 6.0% annual cumulative non-compounded return on their net
                   invested capital (the "Stockholders' 6.0% Return"). To the
                   extent that Subordinated Disposition Fees are not paid by the
                   Company on a current basis due to the foregoing limitation,
                   the unpaid fees will be accrued and paid at such time as the
                   subordination conditions have been satisfied. The
                   Subordinated Disposition Fee may be paid in addition to real
                   estate commissions paid to non-affiliates, provided that the
                   total real estate commissions paid to all persons by the
                   Company shall not exceed an amount equal to the lesser of (i)
                   6.0% of the contract sales price of a Property, or (ii) the
                   competitive real estate commission. In the event this
                   Agreement is terminated prior to such time as the
                   stockholders have received total distributions in an amount
                   equal to 100% of invested capital plus the Stockholders' 6.0%
                   Return, an appraisal of the Properties then owned by the
                   Company shall be made and the Subordinated Disposition Fee on
                   Properties previously sold will be deemed earned if the
                   appraised value of the Properties then owned by the Company
                   plus total distributions received prior to the date of the
                   termination of this Agreement equals 100% of invested capital
                   plus the Stockholders' 6.0% Return. Upon Listing (as defined
                   below), if the Advisor has accrued but not been paid such
                   Subordinated Disposition Fee, then for purposes of
                   determining whether the subordinated conditions have been
                   satisfied, stockholders will be deemed to have received
                   distributions in the amount equal to the product of the total
                   number of Shares outstanding and the average closing price of
                   the Shares over a period of 30 consecutive days during which
                   the Shares are traded, with such period beginning 180 days
                   after Listing.

            (e)    SUBORDINATED SHARE OF NET SALE PROCEEDS. A subordinated share
                   of net sale proceeds shall be payable to the Advisor in an
                   amount equal to 15.0% of net sales proceeds remaining after
                   the stockholders have received distributions equal to the sum
                   of the Stockholders' 6.0% Return and 100% of invested capital
                   ("Subordinated Share of Net Sale Proceeds"). Following
                   Listing, no Subordinated Share of Net Sale Proceeds will be
                   paid to the Advisor.

            (f)    SUBORDINATED INCENTIVE LISTING FEE. Upon listing on a
                   national securities exchange registered under Section 6 of
                   the Securities Exchange Act of 1934, as amended (the
                   "Exchange Act"), or a national market system registered under
                   Section 11A of the Exchange Act ("Listing"), the Advisor
                   shall be entitled to a subordinated incentive listing fee in
                   an amount equal to 10.0% of the amount by which (i) the
                   market value of the outstanding stock of the Company,
                   measured by taking the average

<Page>

                                        8

                   closing price or average of bid and asked price, as the case
                   may be, over a period of 30 consecutive days during which the
                   stock is traded, with such period beginning 180 days after
                   Listing ("Market Value"), plus the total of all distributions
                   paid to stockholders from the Company's inception until the
                   date of Listing, exceeds (ii) the sum of (A) 100% of invested
                   capital and (B) the total distributions required to be paid
                   to the stockholders in order to pay the Stockholders' 6.0%
                   Return from inception through the date of Listing
                   ("Subordinated Incentive Listing Fee"). The Company shall
                   have the option to pay such fee in the form of cash, Shares,
                   a promissory note or any combination of the foregoing. The
                   Subordinated Incentive Fee will be reduced by the amount of
                   any prior payment to the Advisor of any Subordinated Share of
                   Net Sale Proceeds from a sale or sales of a Property. In the
                   event the Subordinated Incentive Fee is paid to the Advisor
                   following Listing, no other performance fee will be paid to
                   the Advisor.

            (g)    CHANGES TO FEE STRUCTURE. In the event of Listing, or,
                   notwithstanding the absence of Listing, in the event the
                   stockholders elect to continue the Company's existence after
                   December 31, 2014, the Company and the Advisor may negotiate
                   in good faith to establish another fee structure appropriate
                   for a perpetual life entity. A majority of the Company's
                   Independent Directors must approve any new fee structure
                   negotiated with the Advisor. In negotiating a new fee
                   structure, the Independent Directors 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 Company's
                   portfolio; (ii) the success of the Advisor in generating
                   opportunities that meet the investment objectives of the
                   Company; (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 Company, including underwriting or broker commissions,
                   servicing, engineering, inspection and other fees, whether
                   paid by the Company or by others with whom the Company does
                   business; (v) the quality and extent of service and advice
                   furnished by the Advisor; (vi) the performance of the
                   investment portfolio of the Company, including income,
                   conversion or appreciation of capital, and number and
                   frequency of problem investments; and (vii) the quality of
                   the Property portfolio of the Company 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.

            (h)    SPECIAL TERMINATION PAYMENT. The Advisor shall receive a
                   Special Termination Payment (as defined below) if the Company
                   terminates or does not renew this Agreement without cause.
                   The Special Termination Payment shall be an amount equal to
                   the projected Asset Management

<Page>

                                        9

                   Fee for the one-year period following the date of the
                   termination of this Agreement.

            (i)    REIMBURSEMENT OF EXPENSES. Except as otherwise expressly
                   limited by the terms of this Agreement, the Company shall
                   reimburse the Advisor or its affiliates for (1) the actual
                   cost to the Advisor or its affiliates of goods, materials and
                   services used for or by the Company and obtained from persons
                   unaffiliated with the Advisor and its affiliates, (2) the
                   cost of administrative services rendered to the Company which
                   are necessary to the prudent operation of the Company, such
                   as legal, accounting, computer, transfer agent and other
                   services which could be performed directly for the Company by
                   independent parties, provided however, that no reimbursement
                   shall be made for personnel costs to the extent that such
                   personnel are used in transactions for which the Advisor
                   receives a separate fee, and (3) the actual cost to the
                   Advisor or its affiliates of any letter of credit or credit
                   enhancement that may be required of any lender or seller in
                   connection with the financing of the acquisition of
                   Properties. Absent the vote of a majority of the Company's
                   Independent Directors, the Advisor shall reimburse the
                   Company for reimbursements paid to the Advisor to the extent
                   that such reimbursements exceed, for any given year, the
                   greater of (i) 2% of the Company's average invested assets
                   (which consists, as defined in the Company's Articles of
                   Incorporation, as amended, of the average book value of the
                   assets of the Company, before reserves for appreciation or
                   bad debts) or (ii) 25% of the Company's net income (which
                   consists, as defined in the Company's Articles of
                   Incorporation, as amended, of the total revenues less total
                   expenses, excluding reserves for depreciation, bad debt and
                   certain other similar non-cash reserves).

     11.    OTHER ACTIVITIES OF THE ADVISOR. Nothing contained herein shall
            prevent the Advisor from engaging in other activities, including,
            without limitation, the rendering of advice to other investors
            (including other REITs) and the management of other programs
            advised, sponsored or organized by the Advisor or its affiliates;
            nor shall this Agreement limit or restrict the right of any
            director, officer, employee or shareholder 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. Notwithstanding the foregoing, however, the
            Advisor shall devote sufficient resources to the administration of
            the Company to discharge its obligations hereunder. The Advisor may,
            with respect to any investment in which the Company is a
            participant, subject to its contractual duties to the Company under
            this Agreement, also render advice and service to each and every
            other participant therein.

     12.    ALLOCATION OF INVESTMENT OPPORTUNITIES. Neither the Advisor nor any
            of its affiliates shall be obligated to present to the Company
            investment opportunities that come to their attention, even if any
            of those opportunities may be suitable to

<Page>

                                       10

            the Company. In addition, if the Advisor shall have an investment
            opportunity which satisfies the investment criteria of the Company,
            the Advisor shall make that investment opportunity available to the
            Company before such opportunity is invested in by the Advisor.

     13.    TERM/TERMINATION OF AGREEMENT. Initially, this Agreement shall have
            a term of one (1) year commencing on the closing date of the initial
            minimum offering under the Registration Statement. Following the
            initial term, subsequent renewals for one (1) year terms will be
            subject to an evaluation of the performance of the Advisor by the
            audit committee of the Company's Board of Directors. This Agreement
            may be terminated by a majority of the Independent Directors of the
            Company or by the Advisor, in all cases by giving not less than 60
            days' advance notice in writing to the other party.

     14.    ACTION UPON TERMINATION. The Advisor shall not be entitled to
            compensation for services performed after the effective date of the
            termination of this Agreement. The Advisor shall, forthwith upon
            such termination:

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

            (b)    promptly deliver to the Company a full accounting, including
                   a statement showing all amounts collected, disbursed and held
                   by the Advisor, for the period following the date of the last
                   accounting furnished to the Company; and

            (c)    promptly deliver to the Company all property and documents of
                   the Company then in the custody of the Advisor.

     15.    AMENDMENTS. The Agreement shall not be modified except by an
            instrument in writing signed by both parties hereto, or their
            respective successors or assigns, or otherwise as provided herein.

     16.    ASSIGNMENT. This Agreement may be assigned upon the consent of both
            parties hereto: (i) upon approval of a majority of the Independent
            Directors of the Company, by the Advisor to a person which is an
            affiliate of the Advisor; or (ii) by either the Advisor or the
            Company to its successor-in-interest. The Advisor may delegate some
            or all of its duties under this Agreement to an affiliate.
            Notwithstanding the foregoing, so long as the Company intends to
            qualify as a real estate investment trust under the Code, this
            Agreement may not be assigned to any entity that serves as a
            property manager with respect to the Properties of the Company.

<Page>

                                       11

     17.    GOVERNING LAW. The provisions of this Agreement shall be construed
            and interpreted in accordance with the internal laws of The
            Commonwealth of Massachusetts without giving effect to conflicts of
            laws principles or rules.

     18.    DIRECTORS AND STOCKHOLDERS NOT LIABLE. This Agreement is made on
            behalf of the Company by an officer of the Company, not
            individually, but solely as such officer, and the obligations under
            this Agreement are not binding upon, nor shall resort be had to, the
            private property of any of the directors, officers, stockholders,
            employees or agents of the Company personally, but shall bind only
            the Company.

     19.    INDEMNIFICATION BY THE COMPANY. Subject to the limitation in Article
            9 of the Company's Restated Articles of Incorporation the Company
            shall indemnify and hold harmless the Advisor, to the full extent
            permitted by the Maryland General Corporation Law (in effect at the
            time indemnity is sought), from all liability, claims, damages or
            loss arising in the performance of its 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.

     20.    INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold
            harmless the Company from contract or other liability, claims,
            damages, taxes or losses and related expenses, including attorneys'
            fees, to the extent that such liability, claims, damages, taxes,
            losses and related expenses are not fully reimbursed by insurance
            and are incurred by reason of the Advisor's bad faith, fraud,
            willful misfeasance, misconduct, negligence or reckless disregard of
            its duties, but the Advisor shall not be held responsible for any
            action of the Company's Board of Directors in following or declining
            to follow any advice or recommendation given by the Advisor.

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

     22.    NOTICES. All notices, demands and other communication to be given or
            delivered under or by reason of the provisions of this Agreement
            must be in writing and will be deemed to have been given on the day
            established by sender as having been delivered personally; on the
            day delivered by private courier as such day is established by
            evidence obtained by the sender from the courier; on the day and at
            the time established by evidence obtained by the sender from a
            telegraph company if telegraphic means of communication are used; or
            on the day established by a return receipt with respect to notices,
            demands and other communications intended to be delivered by U.S.
            mail. Such notices, demands and other communications to be valid,
            must be addressed:

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                                       12

            (a)    If to the Company, to:

                   Boston Capital Real Estate Investment Trust, Inc.
                   c/o Boston Capital Corporation
                   One Boston Place, Suite 2100
                   Boston, Massachusetts 02108-4406
                   Attn:  Jeffrey H. Goldstein, President

                   with a copy to:

                   Nixon Peabody LLP
                   101 Federal Street
                   Boston, MA 02210
                   Attn:  Alexander J. Jordan, Jr., Esq.

            (b)    If to the Advisor, to:

                   Boston Capital REIT Advisors, LLC
                   c/o Boston Capital Corporation
                   One Boston Place, Suite 2100
                   Boston, Massachusetts 02108-4406
                   Attn:  John P. Manning, President

                   with a copy to:

                   Nixon Peabody LLP
                   101 Federal Street
                   Boston, MA 02210
                   Attn:  Alexander J. Jordan, Jr., Esq.

            or to such other address or to the attention of such other person as
            recipient party has specified by prior written notice to the sending
            party (or in the case of counsel, to such other readily
            ascertainable business address as such counsel may hereafter
            maintain).

     23.    INITIAL INVESTMENT. Boston Capital Companion Limited Partnership
            ("Companion"), an affiliate of the Advisor, has contributed to the
            Company $200,000 in exchange for 20,000 Shares (the "Initial
            Investment"). Companion may not sell these Shares while the Advisory
            Agreement is in effect, although Companion may transfer them to its
            affiliates. The Advisor and its affiliates may buy and sell Shares,
            and this restriction shall not apply to any Shares, other than the
            Shares acquired through the Initial Investment, acquired by the
            Advisor or its affiliates. The Advisor shall not vote any Shares it
            hereafter acquires in any vote for the removal of any of the
            Company's directors or any vote regarding the approval or
            termination of any contract with the Advisor or any of its
            affiliates. The restrictions contained in this Section 23 shall not
            go into effect until the initial closing described in the
            Registration Statement has occurred.

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                                       13

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

                                         BOSTON CAPITAL REAL ESTATE
                                         INVESTMENT TRUST, INC.

                                         By: /s/ Jeffrey H. Goldstein
                                             -----------------------------------
                                             Jeffrey H. Goldstein, President

                                         BOSTON CAPITAL REIT ADVISORS, LLC

                                         By: /s/ John P. Manning
                                             -----------------------------------
                                             John P. Manning, President

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