Document:

Exhibit 4.6

                             DISTRIBUTION AGREEMENT

      THIS DISTRIBUTION AGREEMENT (this "Agreement") is entered into effective
as of November 27, 2003 (the "Effective Date") by and between ART ADVANCED
RESEARCH TECHNOLOGIES INC., a company incorporated under the laws of Canada,
with its principal place of business at 2300 Alfred-Nobel Boulevard,
Saint-Laurent, Quebec H4S 2A4 Canada (the "Company") and GENERAL ELECTRIC
COMPANY, acting through and on behalf of its GE MEDICAL SYSTEMS division and
other affiliates, a company incorporated under the laws of the State of New
York, with its principal place of business at 3000 North Grandview Boulevard,
Waukesha, Wisconsin 53188 (the "Distributor") (each of the Company and the
Distributor, a "Party" and together, the "Parties").

                                    RECITALS

      WHEREAS, the Company has developed a stand-alone small animal molecular
optical imaging spectroscopy device, SAMI(TM) or such other trade-mark as may be
designated by the Company, which uses fluorescence and time domain based
technology designed to characterize, visualize and measure cellular and
molecular processes and pathways for single animal imaging (each device, and
similar small animal molecular optical imaging devices developed by the Company,
hereinafter referred to as a "Unit"); and

      WHEREAS, the Company wishes to appoint the Distributor to exclusively
distribute the Units in the Territory (as defined below), and the Distributor is
willing to accept such appointment, on the terms and conditions set forth below.

      NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises and covenants set forth below, the Parties hereto agree as follows:

      1. DEFINITIONS. All capitalized terms will have the meanings ascribed to
such terms in this Section 1 or as otherwise defined herein.

            "Arbitration" will have the meaning set forth in Section 18.1(b)
below.

            "Bankruptcy Code" will mean the Bankruptcy Reform Act of 1978, as
amended.

            "Base Unit" will mean a Unit containing the features as described in
Exhibit E entitled SAMI Base Unit Specification Document.

            "Business Day" will mean any day of the year, other than a Saturday,
Sunday or any day on which the banks are required or authorized to close in
Canada or the United States of America.

            "Company" will have the meaning set forth in the first paragraph
hereof.

            "Company Inventions" will have the meaning set forth in Section
7.3(a) below.

            "Company's IP" will have the meaning set forth in Section 7.1 below.

                                       1
<PAGE>

            "Company's Trademarks" will have the meaning set forth in Section 12
below.

            "Confidential Information" will have the meaning set forth in
Section 11.1 below.

            "Delivery Point" will have the meaning set forth in Section 4.2
below.

            "Demonstration Unit" will have the meaning set forth in Section
3.1(f) below.

            "Dispute" will have the meaning set forth in Section 18.1(a) below.

            "Dispute Notice" will have the meaning set forth in Section 18.1(a)
below.

            "Distribution Manager" will have the meaning set forth in Section
2.4 below.

            "Distributor" will have the meaning set forth in the first paragraph
hereof.

            "Distributor Inventions" will have the meaning set forth in Section
7.3(b) below.

            "Distributor IP" will have the meaning set forth in Section 7.2
below.

            "Distributor Marks" will mean the trademarks, service marks, trade
names and logos of the Distributor and its Affiliates that are identified in
writing to the Company by the Distributor for use in accordance with Section
2.3(b).

            "Distributor Products" will mean the Distributor's products and
systems manufactured by the Distributor or any of its affiliates and all
versions and derivatives thereof.

            "Documentation" will have the meaning set forth in Section 13.8
below.

            "Effective Date" will have the meaning set forth in the first
paragraph hereof.

            "End User" will mean any customer of the Distributor or
Subdistributors who is permitted to use the Units.

            "Field" will mean development, manufacture and marketing of
diagnostic imaging and patient monitoring equipment. The Field does not include
development, manufacture and marketing of products for invasive procedures or
invasive disposables.

            "Files for Bankruptcy" will mean, with respect to an entity, the
occurrence of any of the following events: such entity (a) voluntarily becomes
the subject of any proceedings relating to its winding-up, liquidation or
insolvency or for the appointment of a receiver or similar officer for it; (b)
involuntarily becomes the subject of any proceedings relating to its winding-up,
liquidation or insolvency or for the appointment of a receiver or similar
officer for it, which is not discharged in its favor with prejudice within
ninety (90) days thereafter; (c) makes an assignment for the benefit of all or
substantially all of its creditors, or enters into an agreement for the
recomposition, extension or readjustment of all or substantially all of its
obligations; (d) has filed against it a petition or other document seeking
relief under bankruptcy laws, which is not discharged with prejudice within
ninety (90) days thereafter; or (e) has a temporary or

                                       2
<PAGE>

permanent receiver or liquidator appointed over it or all or substantially all
of its assets, which appointment is not cancelled within ninety (90) days
thereafter.

            "Force Majeure" will mean circumstances beyond the reasonable
control of a Party, including, but not limited to, failures or delay caused by
the other Party, acts of God (including without limitation, flood or
earthquake), war, embargo, strike, labor disturbance, riot, public disorder,
terrorism, catastrophes of fire or explosion, disruption of power supply, local
or foreign laws or regulations not existing at the time of execution of this
Agreement, inability to secure materials and transportation facilities and the
intervention of any governmental authority.

            "Hardware" will have the meaning set forth on Exhibit A.

            "Indemnitee" will have the meaning set forth in Section 16.3 below.

            "Indemnitor" will have the meaning set forth in Section 16.3 below.

            "Insurance Policy" will have the meaning set forth in Section 16.5
below.

            "Joint Inventions" will have the meaning set forth in Section 7.3(c)
below.

            "Licensed Patent Rights" shall mean the patents and patent
applications set forth in Exhibit B, and any continuations,
continuations-in-part, divisionals, reissues, reexaminations, extensions,
foreign counterparts and national and regional designations thereof.

            "Licensed Technology" shall mean the Licensed Patent Rights, and any
and all inventions, know-how, trade secrets, software, copyrights and any other
intellectual property rights related to, or required for the practice of, the
inventions disclosed in the Licensed Patent Rights.

            "Losses" will have the meaning set forth in Section 16.1 below.

            "Notes" will have the meaning set forth in Section 11.1 below.

            "Notice" will have the meaning set forth in Section 18.16 below.

            "Party" and "Parties" will have the meaning set forth in the first
paragraph hereof.

            "Patent Rights" will mean the Patents; any continuations, divisions
or continuations-in-part of the Patents; any patent issuing from any of the
foregoing; and any reissues, re-examinations, foreign counterparts, national or
regional designations or extensions of the Patents.

            "Patents" will mean the patents listed in Exhibit C and any patents
that are issued based on any patent applications listed in Exhibit C, such
exhibit to be automatically amended from time to time to include all patents
related to the Units.

            "Representatives" will have the meaning set forth in Section 11.1
below.

                                       3
<PAGE>

            "Software" will have the meaning set forth on Exhibit D. All
references in this Agreement to the "sale" "selling," or "purchase" of Software
or Software Copies will mean the sale of a license to use such Software or
Software Copies.

            "Software Copy" will mean an object code copy of any of the
Software, together with a copy of any user manual or other documentation
customarily supplied therewith to End Users by the Company with each Unit.
Software and Software Copies shall include Updates but shall not include
Upgrades for such Software and Software Copies.

            "Subdistributor" will have the meaning set forth in Section 3.2(b)
below.

            "Target Units" will have the meaning set forth in Section 3.1(d)
below.

            "Taxes" will mean any sales and similar taxes or duties imposed by
any government agency that has jurisdiction over the import, export or purchase
of the Units (other than taxes on net income of the Company or the Distributor).

            "Term" will have the meaning set forth in Section 15.1 below.

            "Territory" will mean all the countries of the world.

            "Unit" will have the meaning set forth in the recitals hereto. For
greater certainty, the term Unit shall include one device in its entirety and
one Software Copy.

            "Update" will mean a revision of the Software and/or Hardware, which
is not an Upgrade, which improves the existing functions or features of the
Software and/or Hardware.

            "Upgrade" will mean a major revision of the Software and/or
Hardware, which adds to the existing functions or features of the Base Unit,
including separate analysis/visualization workstations and standalone Software
packages related to the device

      2. SCOPE OF THE AGREEMENT.

            2.1 Appointment. The Company hereby appoints the Distributor, and
the Distributor hereby accepts the appointment, as the Company's exclusive
distributor of the Units (and any Updates or Upgrades) in the Territory. For the
avoidance of doubt, this Agreement will not in any way limit or prohibit those
activities of the Company that are not expressly included herein.

            2.2 Exclusivity. Except as expressly set forth in Section 13.9,
during the Term, the Company will not sell, lease, loan, license, transfer or
otherwise provide, or grant any distribution or other rights to provide,
directly or indirectly, the Units or any Updates or Upgrades to any
manufacturer, distributor, customer or other third party in the Territory, other
than the Distributor.

            2.3 Responsibilities of the Parties.

                                       4
<PAGE>

                  (a) The Company shall maintain sole responsibility for the
manufacture and sourcing of the Units and all engineering matters relating to
the Units, including, without limitation, all design issues, quality fixes,
product enhancements, and title and right to sell such Units. [CONFIDENTIAL]
During the Term, except as otherwise expressly set forth herein, the Distributor
shall maintain sole responsibility for the sales and marketing activities and
installation, training and customer support services described in Section 13
hereof.

                  (b) The Company shall, upon the Distributor's reasonable
request, customize the Units according to the Distributor's requirements in
matters relating to color, aesthetic appearance, visual design, branding, user
interface and other requirements of a similar nature including the addition of
the Distributor Marks in accordance with the Distributor's standards. For
greater certainty, such customization shall not relate to shape, size or
functional aspects of the Units. The Distributor shall be responsible for
providing the Company with specifications for customization of the Units in
accordance with the Distributor's standards upon reasonable notice.

                  (c) The Company shall ensure that all Units adhere to the
parameters specified in the "SAMI Base Unit Specification Document" attached
hereto as Exhibit E.

            2.4 Distribution Manager. Promptly following the Effective Date,
each Party shall appoint a manager (each, a "Distribution Manager"), who shall
be responsible for communication and interaction between the Parties with regard
to the routine distribution of the Units and for managing the performance of the
Parties under this Agreement. In addition, the Distribution Managers will have a
monthly teleconference review on progress and a quarterly operating review to be
conducted in person at a mutually agreed upon location.

      3. PURCHASE AND DISTRIBUTION.

            3.1 Purchase of Units From the Company for End Users.

                  (a) During the Term, the Distributor shall purchase such
number of Units from the Company, and the Company shall sell such number of
Units to the Distributor, as the Distributor shall desire for purposes of
distribution to End Users.

                  (b) [CONFIDENTIAL]

                  (c) [CONFIDENTIAL]

                  (d) [CONFIDENTIAL]

                  (e) The lead time, permitted time for rescheduling of orders
and maximum capacity per month (or other agreed interval) for each Unit will be
as mutually agreed in writing between the Parties.

                  (f) [CONFIDENTIAL]

            3.2 Distribution of Units by the Distributor.

                                       5
<PAGE>

                  (a) (i) The Distributor shall use commercially reasonable
efforts to distribute the Units to End Users in all major markets in the
Territory in accordance with the terms of this Agreement and all applicable laws
and codes of practice.

                        (ii) The Company acknowledges that, as of the Effective
Date, it has received correspondence from third parties with respect to alleged
infringement by the Company of certain intellectual property of such third
parties. The Company shall have full discretion to resolve the issues raised in
such correspondence, provided that the Company shall indemnify the Distributor
in accordance with the terms of Sections 9 and 16 hereof for any Losses suffered
by the Distributor in connection with such issues. For purposes of clarity, such
issues will be deemed "resolved" if the Company and the Distributor mutually
agree that (A) the Company has not infringed or no longer infringes upon the
intellectual property of any such third parties or (B) such issues otherwise
have been resolved. [CONFIDENTIAL]

                  (b) Distribution will be performed by the Distributor's GE
Medical Systems division; provided that the Distributor may appoint one or more
third parties within any portion of the Territory to distribute the Units to End
Users (each such third party, a "Subdistributor"); provided, further, that (i)
every such Subdistributor must confirm to the Company in writing its agreement
to be bound by all provisions of this Agreement, and that the Distributor shall
remain responsible hereunder for all actions thereof; (ii) the Company's sole
liability shall remain towards the Distributor; (iii) the Distributor shall
remain responsible for obtaining any consents for the Company that are required
to be obtained under this Agreement from Subdistributors; (iv) a breach of this
Agreement by a Subcontractor shall be deemed a breach by the Distributor and
vice versa, and (v) no Subdistributor shall be permitted to appoint further
subdistributors. Upon becoming aware that a Subdistributor is selling or
otherwise distributing Units, directly or indirectly, in a manner that is not in
accordance in any material respect with the provisions of this Agreement, the
Distributor promptly shall notify such Subdistributor of such failure. If such
Subdistributor has not taken any action to remedy such failure within thirty
(30) days after receipt of notice from the Distributor, then the Distributor
shall terminate such Subdistributor's right to distribute Units.

                  (c) [CONFIDENTIAL]

                  (d) [CONFIDENTIAL]

            3.3 Reservation of Rights; No Rights Beyond Units. Except as
expressly provided in this Agreement, (a) no right, title, or interest is
granted, whether express or implied, by the Company to the Distributor, (b)
nothing in this Agreement will be deemed to grant to the Distributor rights in
any products or technology not owned by the Distributor, (c) no provision of
this Agreement will be deemed to restrict the Company's right to exploit
technology, know-how, patents or any other intellectual property rights relating
to the Units in products other than the Units, and (d) no provision of this
Agreement will be deemed to restrict the Distributor's right to exploit
technology, know-how, patents or any other intellectual property rights relating
to the Distributor Products, provided that such rights do not include the right
to exploit the Company's technology, know-how, patents or any other intellectual
property contained in the Distributor Products other than as expressly allowed
by this Agreement.

                                       6
<PAGE>

            3.4 Independent Contractors. The relationship of the Distributor and
the Company established by this Agreement is that of independent contractors,
and nothing herein will be construed to (a) give either Party the power to
direct or control the day-to-day activities of the other, (b) constitute the
Parties as partners, joint venturers, principal and agent, employer and
employee, co-owners, franchisor and franchisee, or otherwise as participants in
a joint undertaking or (c) allow either Party to create or assume any obligation
on behalf of the other Party for any purpose whatsoever. Except as otherwise set
forth herein, all financial and other obligations associated with each Party's
business are the sole responsibility of such Party.

            3.5 Cease Production. Upon written notice to the Distributor at
least one hundred and eighty (180) days prior thereto, the Company may cease
production of the Units, and in such case the Parties shall prepare together a
phase-out plan consistent with the Distributor's phase review discipline
procedure (PRD) as it exists as of the Effective Date of this Agreement.
[CONFIDENTIAL] This Agreement shall terminate upon the consummation of such
delivery and all other stages of the phase-out plan.

      4. PRICING, DELIVERY AND PAYMENT.

            4.1 Pricing. All prices referred to herein shall be payable in
United States Dollars.

            4.2 Delivery and Freight. Deliveries of Units from the Company to
the Distributor will be made to a designated delivery point of the Distributor's
GE Medical Systems division in or near Milwaukee, Wisconsin, United States of
America (the "Delivery Point"). The Company shall make all reasonable efforts to
meet the delivery times specified in duly accepted purchase orders, provided
that the Company will not be liable for delays in deliveries when such delays
are the result of Force Majeure. The Company agrees to use freight carriers for
shipment of Units that are designated as preferred freight carriers by the
Distributor unless commercially unreasonable. Each shipment of Units shall
include a packing list that contains the purchase order number, product
identification, quantity shipped, date of shipment and such other information as
the Distributor shall require. The Company shall pay all packing, shipping and
handling charges for the delivery of Units to the Delivery Point.

            4.3 Taxes. The Distributor shall bear all Taxes imposed on it under
applicable law in connection with the purchase of Units from the Company,
including any VAT, transfer or sales tax, in each case of which the Company is
not entitled to a refund. The Distributor shall have the right to withhold or
deduct at source any applicable Taxes as required by law from the purchase
price, and the amount so withheld or deducted at source shall be treated as paid
for purposes of this Agreement.

            4.4 Payment. [CONFIDENTIAL] The Company's invoices shall contain the
purchase order release number, item number on such release, invoice quantity,
unit of measure, unit price, total invoice amount, phone number, address to
which remittance should be sent and such other information as may be required by
the Distributor. For the purpose of clearing invoices for payment, Units shall
be considered accepted by the Distributor within seven (7) days after delivery,
unless within such period the Distributor submits to the Company a written
notice as to the unacceptable condition of the Units and such unacceptance is
found to be justified. The

                                       7
<PAGE>

Distributor shall pay to the Company the amount charged in the invoice within
[CONFIDENTIAL] after both accepting a Unit and receiving an invoice prepared in
accordance with the terms of this Agreement.

      5. REGULATORY MATTERS. The Company will use commercially reasonable
efforts, at its own expense, to apply for and obtain all regulatory approvals
from all governmental and regulatory authorities in the Territory (including, if
applicable, the U.S. Food and Drug Administration), to the extent required to
market, sell and distribute the Units or any Joint Inventions of the Parties in
the Territory, where applicable, and comply with the most current governmental
and other regulatory standards with respect to the Units or any Joint
Inventions, as applicable, as the same may be supplemented or revised from time
to time. To the extent permitted by applicable law, and without in any way
limiting the Company's rights hereunder, all regulatory approvals obtained by
the Company related to the Units will be made in the Company's name. All
regulatory approvals obtained for Joint Inventions shall be made in a name to be
selected by the Parties.

      6. OTHER SUPPLY TERMS. To the extent not otherwise addressed herein, and
to the extent commercially reasonable without incurring substantial additional
costs by the Company, terms related to ordering, packaging, shipping and
returning the Units and other matters relating to supply of the Units will be
equivalent to such terms as apply to the Distributor's other similarly situated
suppliers. Such terms are appended as Exhibit F to this Agreement. Where there
is any inconsistency between such terms and the terms and conditions of this
Agreement, this Agreement shall prevail.

      7. OWNERSHIP OF INTELLECTUAL PROPERTY.

            7.1 Ownership of Company Intellectual Property. Subject to the
license rights set forth in this Agreement and the rights of the Distributor to
the ownership of each Unit after the Distributor has purchased such Unit from
the Company, sole and exclusive right, title and interest to all Patent Rights,
Software and the Units and any technology, know-how and intellectual property
owned by, licensed to (except if the licensor is the Distributor) or developed
by the Company underlying the Units and the Software (collectively, the
"Company's IP") will remain with the Company.

            7.2 Ownership of Distributor Intellectual Property. Sole and
exclusive right, title and interest to all Distributor Products and any
technology, know-how and intellectual property owned by, licensed to (except if
the licensor is the Company) or developed by the Distributor underlying the
Distributor Products or embodied or contained therein and related thereto
(collectively, "Distributor IP"), will remain with the Distributor.

            7.3 Ownership of Inventions and Improvements.

                  (a) Company Inventions. The Company will have and retain sole
and exclusive right, title and interest to all inventions, improvements,
discoveries and know-how which are made during the Term by the Company, its
employees or agents acting under authority from the Company relating to, made
using, comprising or underlying or embodied in the Units that do not constitute,
and are not derivative works of, Distributor Products, other products and

                                       8
<PAGE>

systems manufactured by the Distributor or any of its affiliates and all
versions and derivatives thereof, Distributor Inventions or Distributor IP and
for which the Distributor does not fully fund the payment of development costs
(collectively, "Company Inventions").

                  (b) Distributor Inventions. The Distributor will have and
retain sole and exclusive right, title and interest to all inventions,
improvements, discoveries and know-how which are made during the Term by the
Distributor, its employees or agents acting under authority from the Distributor
relating to, made using, comprising or underlying or embodied in the Distributor
Products that do not constitute, and are not derivative works of, the Units,
other products and systems manufactured by the Company or any of its affiliates
and all versions and derivatives thereof, Company Inventions or the Company's IP
(collectively, "Distributor Inventions").

                  (c) Joint Inventions. [CONFIDENTIAL] (d) Assignments. Each
Party agrees to take such action as may reasonably be necessary to effectuate
the ownership provisions of this Section 7.3, including without limitation, the
execution and delivery of instruments of assignment, recordation or
registration, and the giving of truthful testimony.

      8. LICENSE.

            8.1 During the Term, the Company grants to the Distributor, its
Subdistributors, and their End User customers, an irrevocable, world-wide,
royalty-free, exclusive right and license to use, offer to sell, sell, import
and export the Units purchased by the Distributor, its Subdistributors or such
customers. Such exclusive right and license includes the right to use the
Licensed Technology solely in association with the use, offer to sell, sale,
importing and exporting of such Units and for no other purpose.

            8.2 If (a) the Company refuses to, cannot or does not, without
appointing a successor reasonably acceptable to the Distributor, supply or sell
to the Distributor (other than due to temporary shortages in the ordinary course
of business and events of Force Majeure), the Distributor's requirements of the
Units in accordance with this Agreement (including without limitation, the
Distributor's requirements with respect to Unit quality and prices), or (b) the
Company Files for Bankruptcy, the Distributor will have the right [CONFIDENTIAL]
by the Company on or in the Units.

            8.3 Together with each Unit to be supplied to an End User, the
Distributor will attach an End User license agreement, in a form mutually
acceptable to the Distributor and the Company, which the End User will be
required to execute prior to the use of the Unit and the installation of the
Software.

            8.4 The Company agrees that the license described in this Section 8
is a license for intellectual property as that term is defined in Section 101 of
the Bankruptcy Code. The Company further agrees that any enhancement to or
improvements of the intellectual property licensed hereunder, whenever made, are
also intellectual property as defined in Section 101 of the Bankruptcy Code and
that Distributor is entitled to retain the benefits of such

                                       9
<PAGE>

enhancements or improvements pursuant to Section 365(n) of the Bankruptcy Code.
The Company shall maintain up-to-date physical embodiments of all intellectual
property licensed hereunder.

            8.5 The Parties agree that the Distributor would suffer irreparable
damage in the event that any of the provisions of this Section 8 were not
performed by the Company in accordance with their specific terms or were
otherwise breached by the Company. It is accordingly agreed that the Distributor
shall be entitled to an injunction or injunctions to prevent breaches of this
Section 8 by the Company and to enforce specifically the terms and provisions
hereof in any court having jurisdiction, this being in addition to any other
remedy to which the Distributor is entitled at law or in equity.

      9. INTELLECTUAL PROPERTY WARRANTY

            9.1 The Company hereby represents, warrants and covenants as
follows:

                  (a) The Company will not include in any of the Units or End
User documentation, nor will the Company knowingly enter into a situation where
the sale or distribution by the Distributor of any of the Units or End User
documentation as approved by the Company, or the use of such Units or
documentation by End Users, infringes any third party's patent, trademark, trade
secret, copyright or other intellectual property right. The Company owns or has
license rights to (as indicated) the Patents. As of the Effective Date, the
Company has received no notice of infringement from any source relating to the
Units. The Company is not aware of any facts which would, upon a reasonable
interpretation thereof, render the Patents invalid or unenforceable. The Patents
and the intellectual property rights underlying the Hardware and Software
represent all intellectual property rights owned or held by the Company which
are necessary for the Distributor to perform its obligations and enjoy its
rights under this Agreement. The Company is not aware of any other intellectual
property rights underlying the Hardware and the Software which are necessary for
the Distributor to perform its obligations and enjoy its rights under this
Agreement. The Company will use commercially reasonable efforts to develop,
within a reasonable time, any additional technical information required with
respect to the Units.

                  (b) Subject to the limitations set forth in Section 9.2 below,
the Company will (i) indemnify, defend and hold the Distributor and its
directors, officers, employees, representatives, agents and End Users harmless
from and against any and all Losses arising out of or attributable to, and (ii)
have the right to defend, or at its option to settle, at its own expense, any
claim, suit or proceeding brought against the Distributor or its End Users on
the issue of infringement of any third party patent, copyright, trademark or
other intellectual property right or the misappropriation of a trade secret by
the Units distributed hereunder or the use thereof, whether based on current or
future patent, copyright, trademark or other intellectual property rights or
trade secrets of the third party. The Company will have sole control of any such
action or settlement negotiations, and the Company agrees to pay any settlement
amounts or final judgment entered against the Distributor or its End Users in
any such suit, claim or proceeding (including reasonable attorney fees, other
professional fees, and other costs of litigation or settlement). The Distributor
agrees to notify the Company promptly in writing of such claim, suit or
proceeding; provided that the failure to promptly notify the Company will not

                                       10
<PAGE>

relieve the Company of any obligation under this Agreement except to the extent
such failure to provide prompt notice adversely impairs the Company's ability to
defend against such claim, suit or proceeding; provided further, that (x) the
Company may not consent to imposition of any obligation or restriction on the
Distributor in any settlement unless mutually agreed by the Company and the
Distributor, (y) the Company will keep the Distributor fully informed and permit
the Distributor to participate (at its own expense) as the Distributor may
reasonably request and (z) the Distributor may, without affecting its right to
indemnity hereunder, defend and settle any such claim, suit or proceeding if the
Company declines to defend against such claim, suit or proceeding or Files for
Bankruptcy. The Distributor agrees to authorize the Company to proceed as
contemplated herein, and, at the Company's expense, to give the Company
information and assistance to settle and/or defend any such claim, suit or
proceeding as the Company may reasonably request.

                  (c) If (i) in the mutual reasonable opinion of the Parties,
the Units or any part thereof are or may become the subject of any non-frivolous
claim, suit or proceeding for infringement of any patent, copyright, trademark
or other intellectual property right or misappropriation of a trade secret, (ii)
it is adjudicatively determined that the Units, or any part thereof, infringe
any patent, copyright, trademark or other intellectual property right or involve
the misappropriation of a trade secret, or (iii) the distribution or use of the
Units, or any part thereof, is enjoined, then the Company shall, at its expense
(but subject to the limitations contained in Section 9.2 below): (x) procure for
the Distributor and its End Users the right under such patent, copyright,
trademark, other intellectual property right or trade secret to distribute or
use, as appropriate, the Units or any part thereof; (y) replace the Units, or
any part thereof, with functionally equivalent products or parts that do not so
infringe or misappropriate; or (z) suitably modify the Units or any part
thereof.

                  (d) Except for the express limited warranties provided herein,
the Company disclaims all other warranties, whether express or implied,
pertaining to the underlying intellectual property used in the Units.

            9.2 No Liability. Notwithstanding any of the provisions of Section
9.1, the Company assumes no liability for any claim, suit or proceeding brought
against it or the Distributor, any Subdistributor or any End User on the issue
of infringement of any third party patent, copyright, trademark, or other
intellectual property right or the misappropriation of a trade secret (a)
involving any marking or branding not applied by the Company or involving any
marking or branding applied at the request of the Distributor; (b) that arise
from use of the Distributor Inventions, Distributor IP or special requirements
or designs of the Distributor or End Users included in the Units or End User
documentation; or (c) involving modifications of the Units made by the
Distributor, its Subdistributors or End Users without the knowledge or consent
of the Company provided such modifications cause the otherwise non-infringing
product to become infringing. If a court of competent jurisdiction issues a
final, non-appealable judgment or ruling holding the Company liable in
connection with a claim based solely upon the matters set forth in clauses (a),
(b) or (c) above, then the Distributor shall indemnify and hold the Company
harmless from and against any Losses incurred by the Company in connection with
such claim.

                                       11
<PAGE>

            9.3 No Lockout. The Company covenants that no "lockout" or disabling
code or devices will be incorporated or present within any Unit at the time any
Unit is sold by the Company to the Distributor which would result in the Unit
being disabled or inoperable. In no event will the Company remove, alter, change
or interfere with any Unit for purposes of preventing the Distributor or its End
Users from using the Unit as the result of any dispute under this Agreement. The
Company will not modify any Unit to restrict its use by the Distributor or its
End Users to required passwords, periods of time or other restrictions, without
the prior written consent of the Distributor.

      10. PATENT PROSECUTION AND LITIGATION.

            10.1 Maintenance of Patents. The Company will, at its expense, have
responsibility for continuation and maintenance of all Patents; provided that,
if the Company provides notice to the Distributor that it intends to discontinue
the maintenance or continuation of any Patents in the Territory, then the
Company shall offer the Distributor the opportunity to acquire such Patents and
the Distributor may choose to continue and maintain such Patents at its own
expense and ownership of such Patents shall be transferred to the Distributor.

            10.2 Prosecution of New Patents.

                  (a) Filings for the Company Inventions. The Company will, at
its expense, have responsibility for filing, prosecution and maintenance of all
patents for the Company Inventions in the Territory which the Company determines
to file, prosecute and maintain. The Distributor will have the right to review
pending patent applications and make recommendations to the Company concerning
the Company Inventions related to the Distributor Products. The Company will
consider in good faith all reasonable suggestions of the Distributor with
respect to such pending applications related to Distributor Products. The
Company agrees to keep the Distributor informed of the course of patent
prosecution or other proceedings with respect to the patents related to the
Distributor Products within the Territory. In the event that the Company elects
to discontinue the prosecution of any such patents in the Territory, then the
Company shall notify the Distributor of such election to discontinue and the
Distributor may, at its expense, choose to continue the prosecution of such
patents with the cooperation of the Company in the name of the Distributor and
the ownership of such patent applications shall be transferred to the
Distributor, provided that the Distributor pays to the Company the legal fees
and disbursements that the Company has incurred (excluding maintenance fees paid
by the Company pursuant to Section 10.1) relating to such patent applications up
to and including the date of the transfer of such applications.

                  (b) Filings for Joint Inventions. The Distributor and the
Company will jointly, at their joint expense, have responsibility for filing,
prosecution and maintenance of all patents for Joint Inventions. The Parties
shall discuss those countries in the Territory in which they will file patent
applications for such Joint Inventions. All information disclosed to either
Party under this Section 10.2(b) will be deemed Confidential Information of the
disclosing Party. In the event that either Party elects not to file or
discontinues the prosecution or maintenance of any patents relating to Joint
Inventions in any country in the Territory, then the other Party may, at its
expense, choose to file or continue (and thereby own) such Patents with the
cooperation of the Party choosing not to proceed. In case one Party becomes the
sole owner of such patents,

                                       12
<PAGE>

such Party will grant to the other Party a non-exclusive, royalty-free,
perpetual license (with right to sublicense) to use, execute, reproduce,
display, perform, distribute, modify, create derivative works of, make, have
made, market, offer for sale, sell, import and sub-license products
incorporating such patents or to otherwise fully exploit such patents; provided
however that such license shall not extend to inventions or intellectual
property of the other Party. [CONFIDENTIAL]

            10.3 Third Party Infringement. The Company shall enforce its
intellectual property rights related to the Units unless it has a reasonable
basis not to do so. In the event the Company does not undertake such
enforcement, the Distributor will have the right to so enforce such rights and
the Company will give such authority or approvals as may be required for the
Distributor to do so, including joining as a party in a suit if necessary. In
the event that the Company or the Distributor becomes aware of actual or
threatened infringement of a Patent or of any other infringement or
misappropriation by any third party of any patent, copyright, trademark or other
intellectual property right or trade secret relating to the Licensed Technology
or the Units anywhere in the Territory, such Party will promptly notify the
other Party in writing. If the Company does not commence, at its own expense, an
infringement or misappropriation suit within one hundred and eighty (180) days
after receipt of a request by the Distributor to do so and the issue of
infringement or misappropriation has not otherwise been resolved, then the
Distributor, after notifying the Company in writing, will be entitled to bring
such action for infringement or misappropriation at the Company's expense and to
include the Company as a nominal party plaintiff. The Company will keep the
Distributor reasonably informed of its efforts to resolve such infringement or
misappropriation and to prepare for the possibility of commencing an action
during such one hundred and eighty (180) day period. The Party conducting such
action will have full control over the conduct of such action, including
settlement thereof subject to the provisions of this Agreement. In any event,
the Company and the Distributor will assist one another and cooperate in any
such litigation at the other's reasonable request without expense to the
requesting Party.

            10.4 Recovery. The Company and the Distributor will recover their
respective actual out-of-pocket expenses, or equitable proportions thereof,
associated with any litigation against persons undertaken pursuant to Section
10.3 above or settlement thereof from any resulting recovery made by any Party.
Any excess amount of such a recovery will be retained by the Party conducting
such action unless the other Party has agreed in advance to bear half the
expenses of such action, in which case such excess will be shared by both
Parties.

            10.5 Status of Activities. The Parties will keep one another
informed of the status of their respective activities regarding any actual or
threatened infringement of a Patent or of any other infringement or
misappropriation by any third party of any patent, copyright, trademark or other
intellectual property right or trade secret relating to the Licensed Technology
or the Units and any litigation or settlement thereof concerning Units within
the Territory. No settlement or consent judgment or other voluntary final
disposition of any suit defended or action brought by a Party pursuant to this
Section 10 may be entered into without the consent of the other Party if such
settlement would require the other Party to be subject to an injunction or to
make a monetary payment or would otherwise adversely affect the other Party's
rights or the validity, ownership or extent of the intellectual property of the
other Party.

                                       13
<PAGE>

         11.      CONFIDENTIALITY.

            11.1 Definition. For purposes of this Agreement, "Confidential
Information" will mean information, including without limitation, customer lists
and product information and financial, technological and commercial information
of a Party or any third party, exchanged between the Company and the Distributor
pursuant to this Agreement and the performance of the Parties' obligations
hereunder, orally (if reduced to writing and delivered to the other Party within
thirty (30) days of disclosure) or in writing, if marked to indicate its
confidential nature or if of a type that a reasonable person would expect to be
proprietary and confidential. Confidential Information also will include,
without limitation, the terms and conditions (but not the existence) of this
Agreement. Each Party may disclose Confidential Information of the other Party
to its employees, affiliates, agents, professional advisors, consultants or
authorized representatives (collectively, "Representatives"); provided that such
Party's Representatives will be informed of the confidential nature of such
Confidential Information and the obligations of such Party under this Section
11. Each Party agrees to be responsible for any breach of this Agreement by its
Representatives to the same extent as though such person were a Party hereto.
Each Party agrees to take at least the same measures to preserve the
confidentiality of the Confidential Information of the other as it does for its
own Confidential Information and in no event measures which would be less than
those taken by a reasonable person under similar circumstances to preserve the
confidentiality of such information. Without the prior written consent of the
other Party, neither Party will use or allow the use for any purpose of any
Confidential Information of the other Party, including any notes, summaries,
reports, modifications, abridgments, compilations, analyses or other material
derived in whole or in part from such Confidential Information by the receiving
Party, its affiliates or its Representatives, in whatever form maintained
(collectively, "Notes"), in each case except for the purposes contemplated or
allowed by this Agreement or by the licenses granted hereunder. In addition,
each Party will hold all Confidential Information of the other Party in
confidence and will not publish, disclose, or allow disclosure of, any
Confidential Information of the other Party to any other person or entity except
to its Representatives, in each case only to the extent necessary to permit such
Representatives to assist such Party in performing its obligations or exercising
its rights under this Agreement, or except as specified in this Section 11. The
term "person" as used in this Section 11 will be broadly interpreted to include,
without limitation, the media and any individual, corporation, company,
partnership, or other entity or group. The obligations in this Section 11 will
not apply to disclosure by National Broadcasting Company or any of its
affiliates in the ordinary course of their business as a broadcaster, provided
that such disclosure does not result from a breach by the Distributor or its
Representatives of its obligations under this Agreement and that such disclosure
was not initiated by the Distributor.

            11.2 No Confidentiality. The confidentiality and non-use obligations
set forth in this Section 11 will not apply to Confidential Information which
(a) is in the public domain or subsequently enters the public domain other than
as a result of an unauthorized disclosure by the receiving Party or its
Representatives; (b) became available to the receiving Party on a
non-confidential basis prior to its disclosure to such Party by the other Party
or its Representatives; (c) becomes available to the receiving Party on a
non-confidential basis from a source other than the other Party or its
Representatives, provided that the receiving Party had no actual knowledge that
such source was under a legal obligation to refrain from such disclosure; or (d)
was

                                       14
<PAGE>

independently developed by the receiving Party without reference to such
Confidential Information and can be so shown by documentary evidence.

            11.3 Ownership. Except as specifically provided herein, all
Confidential Information will remain the sole and exclusive property of the
disclosing Party that owns such information, and this Agreement will not limit
in any way the right of the disclosing Party to enter into agreements with third
parties granting rights of any kind to its Confidential Information unless such
agreements shall conflict or interfere with the rights of the other Party under
this Agreement.

            11.4 Compelled Disclosure. Neither Party will issue any press
release or otherwise make any public statements with respect to this Agreement
or the transactions contemplated hereby without the prior written consent of the
other Party, except as may be required by applicable law. If a Party is required
(pursuant to legal process, securities rules and regulations or otherwise) to
disclose any Confidential Information of the other Party, such Party agrees to
provide the other Party with prompt notice of each such required disclosure, to
the extent practical, so that the other Party may seek an appropriate protective
order or confidential treatment. If, absent the entry of a protective order or
confidential treatment, a Party or its Representatives are legally compelled or
required to disclose Confidential Information of the other Party, such Party may
disclose such information to the persons and to the extent required without
liability under this Agreement.

            11.5 Confidential Documentation. Upon expiration or termination of
this Agreement and at the request of the disclosing Party, all Confidential
Information of the disclosing Party in the possession of the other Party,
including without limitation any Notes and copies, will be returned immediately
or, upon request by the disclosing Party, destroyed, except that one copy of
such Confidential Information and all Notes included therein may be retained in
the legal files of the receiving Party solely for compliance purposes or for the
purpose of defending or maintaining any litigation (including any administrative
proceeding) relating to this Agreement or such Confidential Information. No such
termination or return or destruction of such Confidential Information by a Party
will affect such Party's obligations under this Agreement (including its
obligations to ensure compliance with the provisions of this Agreement by its
Representatives), all of which obligations will continue in effect.

            11.6 Survival. Upon expiration or termination of this Agreement,
each Party will be prohibited from using the other Party's Confidential
Information (including, in cases in which the Company is the receiving Party,
information with respect to the Distributor's End Users) gained through
performance of the transactions contemplated by this Agreement for any purpose
including to directly or indirectly compete with the other Party, without the
prior written consent of the other Party. The obligations under Section 11 with
respect to any item of Confidential Information shall survive the expiration or
termination of this Agreement.

            11.7 Escrow. [CONFIDENTIAL]

      12. TRADEMARKS AND TRADE-NAMES. During the Term, the Distributor shall
have the right, but not the obligation, to indicate to the public that it is the
exclusive worldwide distributor of the Units and to advertise such items under
the trademarks, service marks and trade

                                       15
<PAGE>

names that the Company may adopt from time to time (the "Company's Trademarks")
in a manner to be agreed upon with the Company. Nothing herein will grant to the
Distributor any right, title or interest in the Company's Trademarks. During the
Term, the Company shall have the right to indicate to the public that the
Distributor is the exclusive worldwide distributor of the Units, provided that
marketing materials, announcements or other public disclosure that mentions or
references the Distributor shall be subject to the Distributor's prior written
approval, such approval not to be unreasonably withheld. The Parties acknowledge
and agree that the Units sold to End Users shall include Distributor Marks as
the primary labeling and the Company's Trademarks as the subordinate labeling.

      13. SALES, SERVICE , SUPPORT AND TESTING.

            13.1 Sales and Marketing. The Distributor shall use commercially
reasonable efforts to sell and market the Units to End Users in all major
markets in the Territory in accordance with the terms of this Agreement and all
applicable laws and codes of practice. The Distributor shall be solely
responsible for all sales and marketing activities in connection with the Units
at its sole expense, including advertising in trade magazines and other media
and distribution of marketing materials. The Company will supply to the
Distributor reproducible master copies in English of applicable original content
for marketing materials. Subject to the consent of the Distributor, at the
Company's request, Company personnel shall be allowed to join the Distributor's
and its Subdistributors' personnel during marketing, installation, training or
any other visits at End Users' premises as well as on sales calls to potential
purchasers of Units. The Parties agree that they shall meet and confer from time
to time, including in the meetings of Distribution Managers provided for in
Section 2.4 hereof, to exchange information and views on matters such as
marketing and promotional material used by the Distributor and its
Subdistributors, market conditions, sales leads and sales forecasts, conferences
and trade shows, number of Base Units sold for more than [CONFIDENTIAL] and the
actual sales price of such Units to End Users. During these meetings, the
Distributor recognizes that the Company may from time to time provide the
Distributor with the Company's perspective and related information on global
product positioning for the Units and other marketing and promotional matters.
The Distributor agrees that it shall give reasonable consideration to the views
of the Company during its marketing and promotional planning processes. The
Distributor may, at its discretion, invite the Company's personnel to attend
conferences and trade shows to participate with the Distributor and its
Subdistributors in the marketing and demonstration of the Units. Such
participation may include attending the Distributor's product booths to meet
potential clients for the Units.

            13.2 Marketing by the Company. Nothing in this Agreement shall
preclude the Company from marketing the Units at trade shows and conferences
where the Company will be marketing and selling its full line of products.
However, the Company agrees that all such marketing activities will be
consistent with the Distributor's positioning and general marketing strategies
for the Units. The Company will not distribute any marketing materials other
than marketing materials provided by the Distributor. The Company will advise
any potential End User customer that the Distributor and its Subdistributors are
the exclusive source for the purchase of such Units and shall promptly refer any
sales leads for the Units to the Distributor.

                                       16
<PAGE>

            13.3 Installation and Training. The Distributor shall be solely
responsible for the installation of all Units at End Users' premises and for
training End Users' personnel to use the Units.

            13.4 Updates and Upgrades.

                  (a) The Company shall provide all Units ordered by the
Distributor including all Updates, enhancements or options to the Units released
prior to the date of order. The Company shall provide the Distributor with
future Updates for Units purchased by the Distributor at no charge during the
Term.

                  (b) The Company shall provide the Distributor with Upgrades at
a price and on other terms and conditions as to be agreed upon by the Parties.

            13.5 Training of the Distributor Personnel. The Company will provide
personnel and equipment adequate for basic training of the Distributor's
personnel with respect to (a) the technical installation, operation and
maintenance of the Units and (b) initial Unit orientation and sales training for
the Distributor's sales specialists. Such training will be provided at the
Company's expense (other than travel and lodging of the Distributor's employees)
until six (6) months after the Distributor has purchased six (6) Units from the
Company. Any additional training required by the Distributor, including all man
hours and equipment required in connection therewith and expenses related
thereto, shall be paid for by the Distributor based upon the Company's then
current price list. The Company will supply sufficient demonstration Software
and training documentation in configurations suitable for the Distributor to
perform additional internal training for new Distributor personnel in quantities
reasonably requested by the Distributor. In addition, the Company will supply to
the Distributor's sales specialists appropriate demonstration data bases and
Software for installation in computers operated by the Distributor's sales
personnel at the Company's expense where commercially reasonable to do so. The
Distributor will bear all expenses with regard to any additional demonstration
data bases and Software requested by the Distributor.

            13.6 Service and Support.

                  (a) Distributor Obligations. The Distributor will be
responsible for service and support of the Units towards End Users with the
reasonable cooperation of the Company. The Distributor will provide End Users
with Level 1 and Level 2 service support. For purposes of this Agreement, "Level
1" services will include, without limitation, (i) answering End User questions
regarding the use and operation of the Units, interpretation of accompanying
documentation and all documented services and events, (ii) responding to
application questions, (iii) basic trouble shooting to determine proper
documentation procedures and problem isolation and (iv) installing and providing
End User assistance to process system operation changes or additions. "Level 2"
services will include, without limitation, (x) assistance in non-documented
services or events or non-resolvable highly technical situations and (y)
assisting End Users with implementation of Upgrades and non-Software updates and
technical support to resolve issues and problems escalating from Level 1 service
issues, including the provision of on-site support where necessary. At the
Distributor's request, the Company's personnel shall join the Distributor's
personnel during on-site support at End Users' premises to perform Level 2
services,

                                       17
<PAGE>

and in such a case the Distributor shall reimburse the Company for the costs of
such labor at the Company's then current rates (including, without limitation,
travel and living expenses).

                  (b) Changes in the Units. Except as may be authorized in
writing by the Company or as expressly set forth in this Agreement, neither the
Distributor nor any of its Representatives or End Users is authorized to make
any changes, modifications or alterations in the Units or Documentation.

                  (c) Company Obligations. The Company will provide Level 3
service support to the Distributor and the End Users. For purposes of this
Agreement, "Level 3" service will include, without limitation, (i) addressing
design defects that impair the functionality of the Units and (ii) verifying and
fixing "bugs" reported to the Company by the Distributor or the End Users,
notifying the Distributor of the nature of the bug, and providing to the
Distributor periodic status reports regarding repair of the bugs until all bugs
are resolved and fixed at the End User site accompanied by appropriate
documentation. To the extent commercially reasonable, all reported bugs will be
repaired by the Company prior to release of the succeeding Upgrade to the
relevant Units. The Company will not be responsible for providing Level 3
service support arising from any inappropriate use of the Unit by the End User.

                  (d) Other Obligations. Any service support that is not covered
by Level 1, Level 2 or Level 3 services shall be provided as mutually agreed by
the Parties.

                  (e) Company Inability to Support. If the Company is unable to
satisfy its service support obligations specified hereunder, the Company shall
notify the Distributor as soon as practicable, and the Distributor shall
provide, at the Company's expense, the services that the Company is unable to
perform, including without limitation service of the installed base.

            13.7 Special and Additional End User Software Customization
Requests. In the event that an End User requests special Software modifications
or enhancements, the Distributor will promptly forward such requests to the
Company. The Company will assist and cooperate with the Distributor's sales and
service specialists and the End User to interpret the End User's requests and
needs. The Company and the Distributor shall mutually agree upon the cost of
requested modifications or enhancements. Such customization requests shall be
undertaken by the Company upon commercially reasonable terms as agreed upon
between the Company, the Distributor and the End User. The Company will maintain
a schedule of requested features. The Company may incorporate such enhancements
and additions into future editions of the Software in its sole discretion.

            13.8 Documentation. The Company will supply to the Distributor user
documentation in English (and in the appropriate formats), as necessary to use
the applicable Unit effectively, without additional charge to the Distributor.
User documentation will include without any limitation the following
(collectively, the "Documentation", and the Parties agree that this term shall
not include any source code or source materials):

                  (a) such documents and manuals that collectively contain a
complete description and definition of all Unit operations, all user guides
necessary for the operation and

                                       18
<PAGE>

management of the Units and instruction manuals, including all original
worksheets to instruct and verify installation of the Software;

                  (b) service manuals including all internally-developed
documentation for Software and Hardware troubleshooting and all vendor
documentation relating to Software and Hardware;

                  (c) service part replacement lists with current prices;

                  (d) set-up worksheets including copies of original worksheets
used for installation;

                  (e) End User configuration worksheets specifying, among other
things, selected options and templates; and

                  (f) all materials, documentation, specifications, technical
manuals, flow diagrams, file descriptions and other written information from
time to time either received by the Distributor or published by the Company that
describes the function and use of the Units.

            The Company grants to the Distributor and its End Users permission
to duplicate all printed Documentation for their internal use. The Distributor
may also incorporate such Documentation into its own documentation for
distribution and use by the Distributor and its End Users. If a change in any
Unit requires a change in the Documentation, the Company will promptly notify
the Distributor of the change and will provide the revised text as an addendum
or as a complete revised master copy.

                  13.9 Company Product Development. The Company shall have the
right to loan Units to third parties solely for product and application
development purposes. Prior to making such loan, the Company shall consult with
the Distributor in order to ensure that the loan is not inconsistent with the
Distributor's ongoing sales and marketing strategies. [CONFIDENTIAL]

                  13.10 [CONFIDENTIAL] This Agreement shall not be considered to
be breached in any manner as a result of such operation and use.

      14. ADDITIONAL AGREEMENTS AND COVENANTS OF THE PARTIES.

            14.1 Unit Warranties.

                  (a) The Company shall provide the Distributor with a full
warranty for each Unit for twelve (12) months from the time the End User has
fully installed such Unit at such End User's facility. The full warranty shall
include, without limitation, the Company's supply of replacement parts for
defective parts of such Units and related labor; provided that, if the Parties
agree that such labor shall be performed by the Distributor, then the Company
shall reimburse the Distributor for the costs of such labor at the Distributor's
then current rates (including, without limitation, travel and living expenses).

                                       19
<PAGE>

                  (b) As long as the full warranty for any Unit remains in
effect, the Company shall maintain a readily available inventory of replacement
parts that can be delivered to the Distributor, Subdistributor or applicable End
User within a commercially reasonable period of time.

                  (c) After the expiration of the full warranty for a Unit, the
Company shall maintain an inventory of replacement parts for Units. The Company
shall deliver such replacement parts to the Distributor within forty-eight (48)
hours after the Distributor's request therefor, at a price equal to the
Company's cost plus twenty percent (20%) and any and all applicable delivery or
shipping charges.

            14.2 Device Incident Reporting. If the Company or the Distributor is
required to report to any governmental or regulatory agency information that
reasonably suggests that a Unit may have caused or contributed to a death or
serious injury to a human being or has malfunctioned and that the device would
be likely to cause or contribute to a death or serious injury to a human being
if the malfunction were to recur, then each of the Company and the Distributor
agree to supply to the other any such information promptly after becoming aware
of it so that each of the Company and the Distributor can comply with such
governmental or regulatory reporting requirements. Each Party will use its best
efforts to comply with all applicable governmental or regulatory reporting
requirements within the Territory. It is understood and agreed that each Party
will deliver all applicable reports to the other Party as promptly as
practicable to enable such other Party to comply with all applicable
governmental or regulatory reporting requirements. In the event that the Company
is required by any regulatory agency to recall a Unit, or if the Company or a
regulatory authority initiates a Unit recall, the Distributor will cooperate
with and assist the Company in locating, and retrieving if necessary, the
recalled Units from the Distributor's End Users. All recalls of the Units
arising from manufacturing defects will be at the Company's cost and expense.
The Distributor will maintain records of sales of Units by lot number and by End
Users to whom such Units were sold or otherwise transferred. Upon the Company's
request, the Distributor will provide the Company with access to or information
from such records in the event of a Unit recall or other quality related issue.
The Distributor will be responsible for obtaining all records of its sales to
End Users in the event of a Unit recall or other quality related issue. During
the time that the Units are commercially marketed, distributed, or sold by the
Distributor, (a) the Distributor will promptly forward all Unit complaints which
it receives from End Users to the Company and (b) the Company will investigate
the root causes of and the corrective actions necessary to resolve each such
complaint and will convey its conclusions to the Distributor within ten (10)
Business Days after receipt of each such complaint.

      15. TERM AND TERMINATION.

            15.1 Term. This Agreement will continue in full force and effect
beginning on the Effective Date and continuing until [CONFIDENTIAL], unless
earlier terminated in accordance with the provisions of this Agreement (as such
period may be renewed and extended, the "Term"). The Parties may renew or extend
the Term by mutually agreeing in writing to such renewal or extension period and
the duration of such period at least one hundred and eighty (180) days prior to
the end of the initial term or any renewal or extension period.

                                       20
<PAGE>

            15.2 Termination for Cause. [CONFIDENTIAL]

            15.3 Other Termination Events. [CONFIDENTIAL]

            15.4 Fulfillment of Orders upon Termination. Upon termination of
this Agreement by the Company, the Company will have the right, at its sole
option, to require the Distributor to satisfy the Distributor's obligations
under all outstanding purchase orders that have been accepted by the Company
prior to the effective date of termination. Upon termination of this Agreement
by the Distributor, the Distributor will have the right, at its sole option, to
require the Company to satisfy the Company's obligations under all outstanding
purchase orders that have been accepted by the Company prior to the effective
date of termination.

            After the termination of this Agreement, to the extent that the
Distributor has possession of Units that it has not distributed or sold to third
parties, the Distributor will have the right to market, distribute and sell such
Units in the Territory pursuant to the terms hereof on a non-exclusive basis for
a period of one hundred twenty (120) days after termination of this Agreement.

            Notwithstanding anything herein to the contrary, in the event that
the Distributor is under obligation by statute to distribute or sell Units in
the Territory to any End User or in any country after expiration or termination
of this Agreement, then the Parties shall agree upon the terms applicable to
such distribution or sale, and if not agreed upon promptly, the delivery,
payment, support and other applicable terms and conditions of this Agreement
will remain in effect as to such End Users or countries, as the case may be,
until such obligation ceases.

            Upon termination of this Agreement, the Parties will cooperate in
good faith to transfer outstanding support undertakings towards End Users as
described in Section 13 from the Distributor to the Company or its distributors;
provided that the Parties shall not be required to effect such transfer if
termination of this Agreement is (a) due to a material breach or material
default by the Distributor or (b) because the Company Files for Bankruptcy.

            15.5 Effects of Termination. Termination or expiration of this
Agreement will not relieve either Party of obligations incurred prior to such
termination or expiration. Subject to the terms hereof, termination of this
Agreement for any reason will result in termination of any subdistributorship
for the Units granted by the Distributor.

            15.6 Survival of Certain Terms. The provisions of Sections 3.3, 3.4,
7, 9, 10, 11, 14.1, 15.4, 15.5, 16 and 18.1 will survive the termination or
expiration of this Agreement for any reason. All other rights and obligations of
the Parties will cease upon termination or expiration of this Agreement, except
as expressly provided herein.

            15.7 Remedies. Unless otherwise provided in this Agreement, upon any
termination of this Agreement pursuant to this Section 15, except as specified
in Section 9, each Party will have all rights and remedies available to it
hereunder or at law or in equity, it being understood that the exercise of any
one remedy is not meant to be exclusive of any other remedy and that all
remedies hereunder are intended to be cumulative.

                                       21
<PAGE>

      16. INDEMNIFICATION.

            16.1 Indemnification by the Distributor. Subject to any limitation
contained elsewhere in this Agreement, the Distributor agrees to indemnify,
defend and hold the Company and its directors, officers, employees,
representatives and agents harmless from and against any and all claims, losses,
damages, obligations, liabilities and costs (including reasonable attorneys' and
other professional fees and other costs of litigation) (collectively, "Losses")
arising out of or attributable to: (a) the gross negligence or willful
misconduct of the Distributor in connection with this Agreement; (b) any
material breach of this Agreement by the Distributor; or (c) any claim asserted
against the Company for the Distributor's or its Subdistributors' failure to
comply with any agreements with End Users.

            16.2 Indemnification by the Company. Subject to any limitation
contained elsewhere in this Agreement, the Company agrees to indemnify, defend
and hold the Distributor and its directors, officers, employees,
representatives, agents and End Users harmless from and against any and all
Losses arising out of or attributable to: (a) the manufacture of the Units or
any design defect, malfunction or other failure of the Units to perform for the
purpose for which it was supplied; (b) the gross negligence or willful
misconduct of the Company in connection with this Agreement; or (c) any material
breach of this Agreement by the Company.

            16.3 Indemnification Procedures. In the event that any person
intends to claim indemnification pursuant to Section 16.1 or 16.2 (an
"Indemnitee"), it will promptly notify the indemnifying Party (the "Indemnitor")
in writing of such alleged liability, provided that the failure to promptly
notify the Indemnitor will not relieve the Indemnitor of any obligation under
this Agreement except to the extent such failure to provide prompt notice
adversely impairs the Indemnitor's ability to defend against the claim, suit or
proceeding. The Indemnitor will have the sole right to control the defense and
settlement of such claim, suit or proceeding, provided, that (a) the Indemnitor
may not consent to imposition of any obligation or restriction on the Indemnitee
in any settlement unless mutually agreed by the Indemnitor and the Indemnitee,
(b) Indemnitor will keep Indemnitee fully informed and permit the Indemnitee to
participate (at Indemnitee's expense) as the Indemnitee may reasonably request
and (c) Indemnitee may, without affecting its right to indemnity hereunder,
defend and settle any such claim, suit or proceeding if Indemnitor declines to
defend against such claim, suit or proceeding or Files for Bankruptcy. The
Indemnitee will cooperate with the Indemnitor and its legal representatives in
the investigation of any action, claim or liability covered by Section 16.1 or
Section 16.2. Except as expressly set forth above, the Indemnitee will not,
except at its own cost, voluntarily make any payment or incur any expense with
respect to any claim, suit or proceeding without the prior written consent of
Indemnitor.

            16.4 Further Limitation. Notwithstanding any other provision of this
Agreement, each Party hereby waives any and all claims against the other Party
for indirect, incidental or consequential damages, and for any sums on account
of loss of goodwill, income or profit or other special damages, even if the
other Party has been advised of the possibility of such damages and losses.

            16.5 Insurance for the Company. The Company covenants that, as of
the Effective Date, the Company will have Units/Completed Operations Liability
Insurance in the

                                       22
<PAGE>

amount of [CONFIDENTIAL] combined single limit per occurrence and [CONFIDENTIAL]
in the aggregate (the "Insurance Policy"). During the Term, the Company agrees
to maintain the Insurance Policy, to increase coverage under the Insurance
Policy as may be appropriate and to take such steps necessary to provide for the
Distributor to be named as an additional insured party under the Insurance
Policy. At the reasonable request of the Distributor, the Company will deliver
to the Distributor a certificate of insurance, a certified copy of the Insurance
Policy and evidence of all premium payments.

            17. COMPLIANCE WITH LAWS.

            17.1 Government. Each Party will at all times during the Term have
in effect all licenses, permits, and authorizations from all governmental
agencies necessary for the performance of its obligations hereunder, and will
comply with all applicable laws, rules and regulations affecting its activities
hereunder, including, without limitation, the United States Foreign Corrupt
Practices Act, as applicable.

            17.2 Currency Control. In the event that any currency control laws
come into effect in any jurisdiction which prevent the payment to the Company of
any sums due under this Agreement from being made in United States Dollars, the
Distributor will notify the Company as promptly as practicable, and will
cooperate with the Company in any procedure reasonably requested by the Company
to give effect to the Parties' intent under this Agreement without incurring
unreasonable costs.

      18. GENERAL PROVISIONS.

            18.1 Dispute Resolution.

                  (a) Any dispute, controversy or claim arising out of or
relating to any purchase order, this Agreement or any related agreement or the
validity, interpretation, breach or termination thereof (a "Dispute"), including
claims seeking redress or asserting rights under applicable law, shall be
brought to the other Party's attention by the disputing Party by a written
notice setting forth with specificity the matters covered by the Dispute (the
"Dispute Notice"). Beginning upon receipt by the receiving Party of the Dispute
Notice, the Distribution Managers shall commence a fifteen (15) day period of
good faith negotiation regarding such Dispute. If the Parties are unable to
resolve the Dispute within such fifteen (15) day period, then the Parties agree
to escalate the Dispute to at least one level of management higher than the
Distribution Managers in their respective organizations for a second resolution
period of no more than forty-five (45) days. During each such resolution period,
each Party will honor the other Party's reasonable requests for non-privileged
and relevant information relating to the Dispute. All negotiations pursuant to
this Section 18.1(a) shall be confidential and shall be treated as compromise
and settlement negotiations for purposes of any applicable rules of evidence.
Nothing in this Section 18.1(a) shall be deemed to prevent either Party from
seeking injunctive relief for any matter with or without recourse to the
procedures set forth in this Section 18.

                  (b) If the Parties are unable to resolve the Dispute through
good faith negotiation within sixty (60) days after the receiving Party's
receipt of the Dispute Notice as described in Section 18.1(a) above, the Dispute
shall be submitted to binding arbitration (the

                                       23
<PAGE>

"Arbitration"). The Arbitration shall be conducted in the City of Toronto,
Ontario, Canada, before a single arbitrator. The arbitrator shall be appointed,
and the Arbitration shall be conducted, under the rules of the American
Arbitration Association in effect at the time of such Arbitration, provided that
the arbitrator shall have no power to award punitive, exemplary or consequential
damages to any party to the Arbitration. The arbitrator's decision shall be
final, conclusive and binding on the parties to the Arbitration, and shall be
the exclusive forum for any claims arising out of this Agreement or the subject
matter hereof. Each Party shall bear its own costs of the Arbitration.

            18.2 Force Majeure. Neither Party will be liable to the other Party
for its failure to perform or delay in performing any of its obligations
hereunder during any period in which such performance is delayed by Force
Majeure.

            18.3 Assignment. Except as provided in Section 3.2(b), neither Party
may assign or delegate this Agreement or any of its licenses, rights or duties
under this Agreement without the prior written consent of the other Party;
provided that the Distributor shall be entitled to assign this Agreement to any
of its affiliates upon notice to the Company.

            18.4 Non-Solicitation of Employees. During the Term, neither Party
may solicit, interfere with, or endeavor to cause any employee of the other
Party to leave his or her employment or induce or attempt to induce any such
employee to terminate or breach his or her employment agreement, if any.

            18.5 Operation of Business. Each Party shall operate its business
for lawful purposes only and in conformance with all applicable laws. In
furtherance thereof, but without limiting the foregoing, each Party shall be
prohibited from providing any remuneration to any customer to induce such
customer to purchase any products or services from the Distributor or any of its
affiliates.

            18.6 Prohibition Against Tying. The Parties shall be prohibited from
tying the terms of a sale of any products or services from the Company, the
Distributor or any of their respective affiliates to a customer's purchase of
any other product or service.

            18.7 Right to Refuse Transaction. The Distributor and the Company
shall have the right to refuse to enter into or fulfill any transaction. The
Distributor shall have the right to terminate or rescind a transaction if it
determines that the buyer of a Unit is not properly licensed or qualified to
purchase or use such Unit.

            18.8 No Reimbursement Advice. No representative of the Company shall
provide advice regarding reimbursement or billing related to the purchase of any
product or service from the Distributor or any of its affiliates, beyond
accurately conveying publicly available information.

            18.9 Good Standing; Authority; Enforceability; No Conflict. Each
Party represents that (a) it is a validly existing corporation under the laws of
its respective jurisdiction of incorporation, (b) it has full power and
authority to enter into this Agreement, (c) all corporate action necessary for
the authorization, execution and delivery of this Agreement by such Party

                                       24
<PAGE>

and the performance of its obligations hereunder has been taken, (d) this
Agreement is a valid and binding obligation of such Party, enforceable against
such Party in accordance with its terms, and (e) the performance by such Party
of this Agreement and its obligations hereunder does not violate any provision
of any other agreement or violate or conflict with any other restriction of any
kind or character to which such Party is a party or by which it is bound.

            18.10 Partial Invalidity. If any section, paragraph, provision or
clause in this Agreement is found or held to be invalid or unenforceable in any
jurisdiction in which this Agreement is being performed, the remainder of this
Agreement will be valid and enforceable and the Parties will negotiate, in good
faith, at arms' length, a substitute, valid and enforceable provision which most
nearly effects the Parties' intent in entering into this Agreement.

            18.11 Counterparts. This Agreement may be executed in counterparts,
which, taken together, will be regarded as one and the same instrument.

            18.12 Modification. No alteration, amendment, waiver, cancellation
or any other change in any term or condition of this Agreement will be valid or
binding on either Party unless the same will have been mutually assented to in
writing by both Parties.

            18.13 Waiver. The failure of either Party to enforce at any time the
provisions of this Agreement, or the failure to require at any time performance
by the other Party of any of the provisions of this Agreement, will in no way be
construed to be a present or future waiver of such provisions, nor in any way
affect the right of either Party to enforce each and every such provision
thereafter. The express waiver by either Party of any provision, condition or
requirement of this Agreement will not constitute a waiver of any future
obligation to comply with such provision, condition or requirement.

            18.14 Entire Agreement. The terms and conditions contained herein
(including the exhibits hereto) constitute the entire agreement between the
Parties and supersede and terminate all previous agreements and understandings,
whether oral or written, between the Parties hereto with respect to the subject
matter hereof, including, without limitation, the Memorandum of Understanding
entered into by the Parties as of August 14, 2003. In the event of any
inconsistency between the Agreement and the exhibits hereto, the terms of this
Agreement shall govern.

            18.15 Section Headings. The section headings contained in this
Agreement are for reference purposes only and will not affect in any way the
meaning or interpretation of this Agreement.

            18.16 Notices. Any notice or other writing required or permitted to
be given under this Agreement or for the purposes of this Agreement (each, a
"Notice") shall be in writing sufficiently given if: (a) delivered personally,
(b) transmitted by fax or other form of recorded communication tested prior to
transmission, (c) sent by registered or certified mail return receipt requested,
postage prepaid, or (d) sent by commercial overnight courier with written
verification of receipt to the sending Party. All Notices shall be sent to the
addresses set forth below or to such other address as may be designated by a
Party by giving Notice to the other Party pursuant to this Section 18.16:

                                       25
<PAGE>

                  If to the Distributor:

                  GE Medical Systems
                  3000 North Grandview Blvd W-641
                  Waukesha, Wisconsin  53188
                  Attention:  General Counsel

                  with a copy to: [CONFIDENTIAL]

                  If to the Company:

                  ART Advanced Research Technologies Inc.
                  2300 Alfred- Nobel Boulevard,
                  Saint-Laurent, Quebec
                  Canada, H4S 2A4
                  Attention:   General Counsel
                  Telephone:  (514) 832-0777
                  Fax:  (514) 832-0778

                  with a copy to:

                  [CONFIDENTIAL]

            Any Notice personally delivered to the Party to whom it is addressed
as provided in this Section 18.16 shall be deemed to have been given and
received on the day it is so delivered at such address, provided that if such
day is not a Business Day then the Notice shall be deemed to have been given and
received on the Business Day next following such day. Any Notice transmitted by
fax or other form of recorded communication shall be deemed given and received
on the first Business Day after its transmission. Any Notice given by mail shall
be deemed to be given and received three (3) calendar days after having been
sent. Any Notice given by overnight courier shall be deemed to be given one (1)
Business Day after deposit with such courier.

            18.17 Compliance with Policies. During the Term, the Parties will
discuss and agree upon policies relating to a variety of matters such as
material quality requirements. For illustrative purposes only, a sample
Distributor Purchased Material Quality Requirement document is attached hereto
as Exhibit G. This document is not intended to be binding.

            18.18 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York (without regard
to principles of conflicts of law), and all questions relating to the validity
and performance hereof and remedies hereunder shall be determined in accordance
with such law.

            18.19 Expenses. Each Party shall be solely responsible for and shall
bear all of its own respective costs and expenses, including without limitation
the fees and expenses of

                                       26
<PAGE>

accountants, attorneys and other advisors, incurred at any time in connection
with this Agreement and the transactions contemplated hereby.

            [The remainder of this page is intentionally left blank]

                                       27
<PAGE>

      IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of
the day and year first above written.

<TABLE>
<S>                                                <C>
ART ADVANCED RESEARCH TECHNOLOGIES INC.            GENERAL ELECTRIC COMPANY,
                                                   acting through and on behalf of its
                                                   GE MEDICAL SYSTEMS division and
                                                   other affiliates

By:                                                By:
   -----------------------------------------          ---------------------------------------
Name:  Micheline Bouchard                          Name:   [CONFIDENTIAL]
Title: President and Chief Executive Officer       Title:  [CONFIDENTIAL]
</TABLE>

                                       28
<PAGE>

                                    EXHIBIT A

                                    HARDWARE

                                 [CONFIDENTIAL]

                                       29
<PAGE>

                                    EXHIBIT B

                             LICENSED PATENT RIGHTS
                     LIST OF PATENTS AND PATENT APPLICATIONS

                                 [CONFIDENTIAL]

                                       30
<PAGE>

                                    EXHIBIT C

                      LISTS OF PATENTS RELATED TO THE UNITS

                                 [CONFIDENTIAL]

                                       31
<PAGE>

                                    EXHIBIT D

                                    SOFTWARE

                                 [CONFIDENTIAL]

                                       32
<PAGE>

                                    EXHIBIT E

                      SAMI BASE UNIT SPECIFICATION DOCUMENT

                                 [CONFIDENTIAL]

                                       33
<PAGE>

                                    EXHIBIT F

          DISTRIBUTOR'S TERMS RELATED TO ORDERING, PACKAGING, SHIPPING
                             AND RETURNING THE UNITS

                                 [CONFIDENTIAL]

                                       34
<PAGE>

                                    EXHIBIT G

               DISTRIBUTOR PURCHASED MATERIAL QUALITY REQUIREMENT

                                 [CONFIDENTIAL]

                                       35<PAGE>

                                                                    EXHIBIT 10.1

         AMENDED AND RESTATED PROPERTY MANAGEMENT AND LEASING AGREEMENT

        This AMENDED AND RESTATED PROPERTY MANAGEMENT AND LEASING AGREEMENT
(this "Management Agreement") is made and entered into as of the 2nd day of
June, 2003, by and among BEHRINGER HARVARD SHORT-TERM OPPORTUNITY FUND I LP, a
Texas limited partnership (the "Partnership") and HPT MANAGEMENT SERVICES LP, a
Texas limited partnership (the "Manager").

        WHEREAS, the Partnership and Manager previously entered into that
certain Property Management and Leasing Agreement dated February 14, 2003 (the
"Original Management Agreement"); and

        WHEREAS, the Partnership intends to continue to raise money from the
sale of its limited partnership interests to be used, net of payment of certain
offering costs and expenses, for investment in the acquisition or construction
of income-producing real estate to be acquired and held by Owner (as hereinafter
defined); and

        WHEREAS, Owner intends to continue to retain Manager to manage and
coordinate the leasing of the real estate properties acquired by Owner under the
terms and conditions set forth in this Management Agreement; and

        WHEREAS, the parties desire to amend and restate the Original Management
Agreement in its entirety in accordance with the terms and provisions hereof;

        NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, do
hereby agree, as follows:

                                    ARTICLE I

                                   DEFINITIONS

        Except as otherwise specified or as the context may otherwise require,
the following terms have the respective meanings set forth below for all
purposes of this Management Agreement, and the definitions of such terms are
equally applicable both to the singular and plural forms thereof:

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

1.2     "Gross Revenues" means all amounts actually collected as rents or other
charges for the use and occupancy of the Properties, but shall exclude interest
and other investment income of Owner and proceeds received by Owner for a sale,
exchange, condemnation, eminent domain taking, casualty or other disposition of
assets of Owner.

<PAGE>

1.3     "Improvements" means buildings, structures, equipment from time to time
located on the Properties and all parking and common areas located on the
Properties.

1.4     "Intellectual Property Rights" means all rights, titles and interests,
whether foreign or domestic, in and to any and all trade secrets, confidential
information rights, patents, invention rights, copyrights, service marks,
trademarks, know-how, or similar intellectual property rights and all
applications and rights to apply for such rights, as well as any and all moral
rights, rights of privacy, publicity and similar rights and license rights of
any type under the laws or regulations of any governmental, regulatory, or
judicial authority, foreign or domestic and all renewals and extensions thereof.

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

1.6     "Owner" means the Partnership and any joint venture, limited liability
company or other Affiliate of the Partnership that owns, in whole or in part, on
behalf of the Partnership, any Properties.

1.7     "Person" means an individual, corporation, association, business trust,
estate, trust, partnership, limited liability company or other legal entity.

1.8     "Properties" means all real estate properties owned by Owner and all
tracts as yet unspecified but to be acquired by Owner containing
income-producing improvements or on which Owner will construct income-producing
improvements.

1.9     "Proprietary Properties" means all modeling algorithms, tools, computer
programs, know-how, methodologies, processes, technologies, ideas, concepts,
skills, routines, subroutines, operating instructions and other materials and
aides used in performing the duties set forth in Article 2 that relate to
management advice, services and techniques regarding current and potential
Properties, and all modifications, enhancements and derivative works of the
foregoing.

                                   ARTICLE II

                APPOINTMENT OF MANAGER; SERVICES TO BE PERFORMED

2.1     APPOINTMENT OF MANAGER. Owner hereby engages and retains Manager as the
manager and as tenant coordinating agent of the Properties and Manager hereby
accepts such appointment on the terms and conditions hereinafter set forth, it
being understood that this Management Agreement shall cause Manager to be, at
law, Owner's agent upon the terms contained herein.

2.2     GENERAL DUTIES. Manager shall devote its best efforts to performing its
duties hereunder to manage, operate, maintain and lease the Properties in a
diligent, careful and vigilant manner. The services of Manager are to be of
scope and quality not less than those generally performed by professional
property managers of other similar properties in the area. Manager shall make
available to Owner the full benefit of the judgment, experience and advice of
the members of Manager's organization and staff with respect to the policies to
be pursued by Owner relating to the operation and leasing of the Properties.

2.3      SPECIFIC DUTIES.  Manager's duties include the following:

        (a)     LEASE OBLIGATIONS. Manager shall perform all duties of the
landlord under all Leases insofar as such duties relate to operation,
maintenance, and day-to-day management. Manager shall also provide or cause to
be provided, at Owner's expense, all services normally provided to tenants of
like premises, including where applicable and without limitation, gas,
electricity or other utilities required to

                                      -2-

<PAGE>

be furnished to tenants under Leases, normal repairs and maintenance, and
cleaning, and janitorial service. Manager shall arrange for and supervise the
performance of all installations and improvements in space leased to any tenant
which are either expressly required under the terms of the lease of such space
or which are customarily provided to tenants.

        (b)     MAINTENANCE. Manager shall cause the Properties to be maintained
in the same manner as similar properties in the area. Manager's duties and
supervision in this respect shall include, without limitation, cleaning of the
interior and the exterior of the Improvements and the public common areas on the
Properties and the making and supervision of repair, alterations, and decoration
of the Improvements, subject to and in strict compliance with this Management
Agreement and the Leases. Construction activities undertaken by Manager, if any,
will be limited to activities related to the management, operation, maintenance,
and leasing of the Property (e.g., repairs, renovations, and leasehold
improvements).

        (c)     LEASING FUNCTIONS. Manager shall coordinate the leasing of the
Properties and shall negotiate and use its best efforts to secure executed
Leases from qualified tenants, and to execute same on behalf of Owner, if
requested, for available space in the Properties, such Leases to be in form and
on terms approved by Owner and Manager, and to bring about complete leasing of
the Properties. Manager shall be responsible for the hiring of all leasing
agents, as necessary for the leasing of the Properties, and to otherwise oversee
and manage the leasing process on behalf of Owner.

        (d)     NOTICE OF VIOLATIONS. Manager shall forward to Owner promptly
upon receipt all notices of violation or other notices from any governmental
authority, and board of fire underwriters or any insurance company, and shall
make such recommendations regarding compliance with such notice as shall be
appropriate.

        (e)     PERSONNEL. Any personnel hired by Manager to maintain, operate
and lease the Property shall be the employees or independent contractors of
Manager and not of Owner. Manager shall use due care in the selection and
supervision of such employees or independent contractors. Manager shall be
responsible for the preparation of and shall timely file all payroll tax reports
and timely make payments of all withholding and other payroll taxes with respect
to each employee.

        (f)     UTILITIES AND SUPPLIES. Manager shall enter into or renew
contracts for electricity, gas, steam, landscaping, fuel, oil, maintenance and
other services as are customarily furnished or rendered in connection with the
operation of similar rental property in the area.

        (g)     EXPENSES. Manager shall analyze all bills received for services,
work and supplies in connection with maintaining and operating the Properties,
pay all such bills when due, and, if requested by Owner, pay, when due, utility
and water charges, sewer rent and assessments, and any other amount payable in
respect to the Properties. All bills shall be paid by Manager within the time
required to obtain discounts, if any. Owner may from time to time request that
Manager forward certain bills to Owner promptly after receipt, and Manager shall
comply with any such request. Manager shall pay all bills, assessments, real
property taxes, insurance premiums and any other amount payable in respect to
the Properties out of the Account (as hereinafter defined). All expenses shall
be billed at net cost (i.e., less all rebates, commissions, discounts and
allowances, however designed).

        (h)     MONIES COLLECTED. Manager shall timely collect all rent and
other monies, in the form of a check or money order, from tenants and any sums
otherwise due Owner with respect to the Properties in the ordinary course of
business. Owner authorizes Manager to request, demand, collect and provide
receipt for all such rent and other monies and to institute legal proceedings in
the name of Owner for the collection thereof and for the dispossession of any
tenant in default under its Lease.

                                      -3-

<PAGE>

        (i)     BANKING ACCOMMODATIONS. Manager shall establish and maintain a
separate checking account (the "Account") for funds relating to the Properties.
All monies deposited from time to time in the Account shall be deemed to be
trust funds and shall be and remain the property of Owner and shall be withdrawn
and disbursed by Manager for the account of Owner only as expressly permitted by
this Management Agreement for the purposes of performing the obligations of
Manager hereunder. No monies collected by Manager on Owner's behalf shall be
commingled with funds of Manager. The Account shall be maintained, and monies
shall be deposited therein and withdrawn therefrom, in accordance with the
following:

                (i)     All sums received from rents and other income from the
                Properties shall be promptly deposited by Manager in the
                Account. Manager shall have the right to designate two or more
                persons who shall be authorized to draw against the Account, but
                only for purposes authorized by this Management Agreement.

                (ii)    All sums due to Manager hereunder, whether for
                compensation, reimbursement for expenditures, or otherwise, as
                herein provided, shall be a charge against the operating
                revenues of the Properties and shall be paid and/or withdrawn by
                Manager from the Account prior to the making of any other
                disbursements therefrom.

                (iii)   By the 15th day after the end of each month, Manager
                shall forward to Owner all monies contained in the Account other
                than a reserve of $5,000 and any other amounts otherwise
                provided in the budget, which shall remain in the Account.

        (j)     OWNERSHIP AGREEMENTS. Manager has received copies of (and will
be provided with a copies of future) Agreements of Limited Partnership, Joint
Venture Partnership Agreements and Operating Agreements, each as may be amended
from time to time, of Owner, as applicable (the "Ownership Agreements") and is
familiar with the terms thereof. Manager shall use reasonable care to avoid any
act or omission that, in the performance of its duties hereunder, shall in any
way conflict with the terms of the Ownership Agreements.

        (k)     SIGNS. Manager shall place and remove, or cause to be placed and
removed, such signs upon the Properties as Manager deems appropriate, subject,
however, to the terms and conditions of the Leases and to any applicable
ordinances and regulations.

2.4     APPROVAL OF LEASES, CONTRACTS, ETC. In fulfilling its duties to Owner,
Manager may and hereby is authorized to enter into any leases, contracts or
agreements on behalf of Owner in the ordinary course of the management,
operation, maintenance and leasing of the Property.

2.5     ACCOUNTING, RECORDS AND REPORTS.

        (a)     RECORDS. Manager shall maintain all office records and books of
account and shall record therein, and keep copies of, each invoice received from
services, work and supplies ordered in connection with the maintenance and
operation of the Properties. Such records shall be maintained on a double entry
basis. Owner and persons designated by Owner shall at all reasonable time have
access to and the right to audit and make independent examinations of such
records, books and accounts and all vouchers, files and all other material
pertaining to the Properties and this Management Agreement, all of which Manager
agrees to keep safe, available and separate from any records not pertaining to
the Properties, at a place recommended by Manager and approved by Owner.

                                      -4-
<PAGE>

        (b)     MONTHLY REPORTS. On or before the 15th day after the end of each
month and during the term of this Management Agreement, Manager shall prepare
and submit to Owner the following reports and statements:

                (i)     rental collection record;

                (ii)    monthly operating statement;

                (iii)   copy of cash disbursements ledger entries for such
                period, if requested;

                (iv)    copy of cash receipts ledger entries for such period, if
                requested;

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

                (vi)    copy of ledger entries for such period relating to
                security deposits maintained by Manager, if requested.

        (c)     BUDGETS AND LEASING PLANS. Not later than November 15 of each
calendar year, Manager shall prepare and submit to Owner for its approval an
operating budget and a marketing and leasing plan on each Property for the
calendar year immediately following such submission. In connection with any
acquisition of a Property by Owner, Manager shall prepare a budget and marketing
and leasing plan for the remainder of the calendar year. The budget and
marketing and leasing plan shall be in the form of the budget and plan approved
by Owner prior to the date thereof. As often as reasonably necessary during the
period covered by any such budget, Manager may submit to Owner for its approval
an updated budget or plan incorporating such changes as shall be necessary to
reflect cost over-runs and the like during such period. If Owner does not
disapprove any such budget within thirty (30) days after receipt thereof by
Owner, such budget shall be deemed approved. If Owner shall disapprove any such
budget or plan, it shall so notify Manager within said 30-day period and explain
the reasons therefor. If Owner disapproves of any budget or plan, Manager shall
submit a revised budget or plan, as applicable, within ten (10) days of receipt
of the notice of disapproval, and Owner shall have ten (10) days to provide
notice to Manager if it disapproves of any such revised budget or plan. Manager
will not incur any costs other than those estimated in any budget except for:

                (i)     tenant improvements and real estate commissions required
                under a Lease;

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

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

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

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

Budgets prepared by Manager shall be for planning and informational purposes
only, and Manager shall have no liability to Owner for any failure to meet any
such budget. However, Manager will use its best efforts to operate within the
approved budget.

                                      -5-
<PAGE>

        (d)     LEGAL REQUIREMENTS. Manager shall execute and file when due all
forms, reports, and returns required by law relating to the employment of its
personnel. Manager shall be responsible for notifying Owner in the event it
receives notice that any Improvement on a Property or any equipment therein does
not comply with the requirements of any statute, ordinance, law or regulation of
any governmental body or of any public authority or official thereof having or
claiming to have jurisdiction thereover. Manager shall promptly forward to Owner
any complaints, warnings, notices or summonses received by it relating to such
matters. Owner represents that to the best of its knowledge each of its
Properties and any equipment thereon will upon acquisition by Owner comply with
all such requirements. Owner authorizes Manager to disclose the ownership of the
Property by Owner to any such officials. Owner agrees to indemnify, protect,
defend, save and hold Manager and its stockholders, officers, directors,
employees, managers, successors and assigns (collectively, the "Indemnified
Parties") harmless of and from any and all Losses (as defined in Section 3.5(a)
hereof) that may be imposed on them or any or all of them by reason of the
failure of Owner to correct any present or future violation or alleged violation
of any and all present or future laws, ordinances, statutes, or regulations of
any public authority or official thereof, having or claiming to have
jurisdiction thereover, of which it has actual notice.

2.6     GUARANTY OF DEPOSITS. Should Owner acquire real property from Behringer
Development Company LP, a Texas limited partnership ("Behringer Development"),
Manager hereby guarantees the full, prompt and unconditional refund of any
earnest money deposit paid by Owner to Behringer Development should Owner be
entitled to such refund as a result of (i) the failure of Behringer Development
to develop the property, (ii) the failure of all or a specified portion of the
pre-leased tenants to take possession under their leases for any reason, or
(iii) the inability of Owner to pay the full purchase price at closing.

                                   ARTICLE III

           AUTHORITY GRANTED TO MANAGER AND CERTAIN OWNER OBLIGATIONS

3.1     AUTHORITY AS TO TENANTS, ETC. Owner agrees and does hereby give Manager
the following exclusive authority and powers (all of which shall be exercised
either in the name of Manager, as Manager for Owner, or in the name or Owner
entered into by Manager as Owner's authorized agent, and Owner shall assume all
expenses in connection with such matters):

        (a)     to advertise each Property or any part thereof and to display
signs thereon, as permitted by law;

        (b)     to lease the Properties to tenants;

        (c)     to pay all expenses of leasing such Property, including but not
limited to, newspaper and other advertising, signage, banners, brochures,
referral commissions, leasing commissions, finder's fees and salaries, bonuses
and other compensation of leasing personnel responsible for the leasing of the
Property;

        (d)     to cause references of prospective tenants to be investigated,
it being understood and agreed by the parties hereto that Manager does not
guarantee the creditworthiness or collectibility of accounts receivable from
tenants, users or lessees; and to negotiate new Leases and renewals and
cancellations of existing Leases that shall be subject to Manager obtaining
Owner's approval;

        (e)     to collect from tenants all or any of the following: a late rent
administrative charge, a non-negotiable check charge, credit report fee, a
subleasing administrative charge and/or broker's commission; and Manager need
not account for such charges and/or commission to Owner;

                                      -6-
<PAGE>

        (f)     to terminate tenancies and to sign and serve in the name of
Owner of each Property such notices as are deemed necessary by Manager;

                (i)     to institute and prosecute actions to evict tenants and
        to recover possession of the Property or portions thereof;

                (ii)    with Owner's authorization, to sue for and in the name
        of Owner of the Property and recover rent and other sums due; and to
        settle, compromise, and release such actions or suits, or reinstate such
        tenancies. All expenses of litigation including, but not limited to,
        attorneys' fees, filing fees, and court costs that Manager shall incur
        in connection with the collecting of rent and other sums, or to recover
        possession of any Property or any portion thereof, shall be deemed to be
        an operational expense of the Property. Manager and Owner shall concur
        on the selection of the attorneys to handle such litigation.

3.2     OPERATIONAL AUTHORITY. Owner agrees and does hereby give Manager the
following exclusive authority and powers (all of which shall be exercised either
in the name of Manager, as Manager for Owner, or in the name or Owner entered
into by Manager as Owner's authorized agent, and Owner shall assume all expenses
in connection with such matters):

        (a)     to hire, supervise, discharge, and pay all labor required for
the operation and maintenance of each Property including but not limited to on
site personnel, managers, assistant managers, leasing consultants, engineers,
janitors, maintenance supervisors and other employees required for the operation
and maintenance of the Property, including personnel spending a portion of their
working hours (to be charged on a pro rata basis) at the Property. All expenses
of such employment shall be deemed operational expenses of the Property.

        (b)     to make or cause to be made all ordinary repairs and
replacements necessary to preserve each Property in its present condition and
for the operating efficiency thereof and all alterations required to comply with
lease requirements, and to decorate the Property;

        (c)     to negotiate and enter into, as Manager of the Property,
contracts for all items on budgets that have been approved by Owner, any
emergency services or repairs for items not exceeding $5,000, appropriate
service agreements and labor agreements for normal operation of the Property,
which have terms not to exceed three years, and agreements for all budgeted
maintenance, minor alterations, and utility services, including, but not limited
to, electricity, gas, fuel, water, telephone, window washing, scavenger service,
landscaping, snow removal, pest exterminating, decorating and legal services in
connection with the Leases and service agreements relating to the Property, and
other services or such of them as Manager may consider appropriate; and

        (d)     to purchase supplies and pay all bills.

Manager shall use its best efforts to obtain the foregoing services and
utilities for the Property under terms that are as cost-effective and otherwise
favorable to Manager as possible for the quality of services and utilities
required. Owner hereby appoints Manager as Owner's authorized Manager for the
purpose of executing, as Manager for said Owner, all such contracts. In
addition, Owner agrees to specifically assume in writing all obligations under
all such contracts so entered into by Manager, on behalf of Owner of the
Property, upon the termination of this Agreement, and Owner shall indemnify,
protect, save, defend and hold Manager and the other Indemnified Parties
harmless from and against any and all Losses resulting from, arising out of or
in any way related to such contracts and that relate to or concern matters
occurring after termination of this Agreement, but excluding matters arising out
of Manager's negligence

                                      -7-
<PAGE>

or misconduct. Manager shall secure the approval of, and execution of
appropriate contracts by, Owner for any non-budgeted and
non-emergency/contingency capital items, alterations or other expenditures in
excess of $5,000 for any one item, securing for each item at least three written
bids, if practicable, or providing evidence satisfactory to Owner that the
contract amount is lower than industry standard pricing, from responsible
contractors. Manager shall have the right from time to time during the term
hereof, to contract with and make purchases from Affiliates of Manager, provided
that contract rates and prices are competitive with other available sources.
Manager may at any time and from time to time request and receive the prior
written authorization of Owner of the Property of any one or more purchases or
other expenditures, notwithstanding that Manager may otherwise be authorized
hereunder to make such purchases or expenditures.

3.3     RENT AND OTHER COLLECTIONS. Owner agrees and does hereby give Manager
the exclusive authority and powers (all of which shall be exercised either in
the name of Manager, as Manager for Owner, or in the name or Owner entered into
by Manager as Owner's authorized agent, and Owner shall assume all expenses in
connection with such matters) to collect rents and/or assessments and other
items, including but not limited to tenant payments for real estate taxes,
property liability and other insurance, damages and repairs, common area
maintenance, tax reduction fees and all other tenant reimbursements,
administrative charges, proceeds of rental interruption insurance, parking fees,
income from coin operated machines and other miscellaneous income, due or to
become due and give receipts therefor and to deposit all such Gross Revenue
collected hereunder in the Account. Manager may endorse any and all checks
received in connection with the operation of any Property and drawn to the order
of Owner, and Owner shall, upon request, furnish Manager's depository with an
appropriate authorization for Manager to make such endorsement. Manager shall
also have the exclusive authority to collect and handle tenants' security
deposits, including the right to apply such security deposits to unpaid rent,
and to comply, on behalf of Owner of the Property, with applicable state or
local laws concerning security deposits and interest thereon, if any. Manager
shall not be required to advance any monies for the care or management of any
Property. Owner agrees to advance all monies necessary therefor. If Manager
shall elect to advance any money in connection with a Property, Owner agrees to
reimburse Manager forthwith and hereby authorizes Manager to deduct such
advances from any monies due Owner. In connection with any insured losses or
damages relating to any Property, Manager shall have the exclusive authority to
handle all steps necessary regarding any such claim; provided that Manager will
not make any adjustments or settlements in excess of $10,000 without Owner's
prior written consent.

3.4     PAYMENT OF EXPENSES. Owner agrees and does hereby give Manager the
exclusive authority and power (all of which shall be exercised either in the
name of Manager, as Manager for Owner, or in the name or Owner entered into by
Manager as Owner's authorized agent, and Owner shall assume all expenses in
connection with such matters) to pay all expenses of the Property from the Gross
Revenue collected in accordance with Section 3.3 above, from the Account. It is
understood that the Gross Revenue will be used first to pay the compensation to
Manager as contained in Article 5 below, then operational expenses and then any
mortgage indebtedness, including real estate tax and insurance impounds, but
only as directed by Owner in writing and only if sufficient Gross Revenue is
available for such payments. Nothing in this Agreement shall be interpreted in
such a manner as to obligate Manager to pay from Gross Revenue, any expenses
incurred by Owner prior to the commencement of this Agreement, except to the
extent Owner advances additional funds to pay such expenses.

3.5     CERTAIN OWNER INDEMNIFICATION OBLIGATIONS.

        (a)     ON TERMINATION. In the event this Agreement is terminated for
any reason prior to the expiration of its original term or any renewal term,
Owner shall indemnify, protect, defend, save and hold Manager and all of the
other Indemnified Parties harmless from and against any and all claims, causes
of action, demands, suits, proceedings, loss, judgments, damage, awards, liens,
fines, costs, attorneys' fees

                                      -8-
<PAGE>

and expenses, of every kind and nature whatsoever (collectively, "Losses"),
which may be imposed on or incurred by Manager by reason of the negligence or
misconduct of Owner.

        (b)     PROPERTY DAMAGE, ETC. Owner agrees to indemnify, defend,
protect, save and hold Manager and all of the other Indemnified Parties harmless
from any and all Losses in connection with or in any way related to the Property
and from liability for damage to the Property and injuries to or death of any
person whomsoever, and damage to property; provided, however, that such
indemnification shall not extend to any such Losses arising out of the
negligence or misconduct of Manager or any of the other Indemnified Parties.
Manager shall not be liable for any error of judgment or for any mistake of fact
or law, or for any thing which it may do or refrain from doing, except in cases
of negligence or misconduct.

3.6     ENVIRONMENTAL MATTERS. Owner hereby warrants and represents to Manager
that to the best of Owner's knowledge, no Property, upon acquisition by Owner,
nor any part thereof, will be used to treat, deposit, store, dispose of or place
any hazardous substance that may subject Manager to liability or claims under
the Comprehensive Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C.A. Section 9607) or any constitutional provision, statute, ordinance,
law, or regulation of any governmental body or of any order or ruling of any
public authority or official thereof, having or claiming to have jurisdiction
thereover. Furthermore, Owner agrees to indemnify, protect, defend, save and
hold Manager and all of the other Indemnified Parties from any and all Losses
involving, concerning or in any way related to any past, current or future
allegations regarding treatment, depositing, storage, disposal or placement by
any party other than Manager of hazardous substances on the Property.

3.7     LEGAL STATUS OF PROPERTIES. Owner represents that to the best of its
knowledge each Property and any equipment thereon, when acquired by Owner, will
comply with all legal requirements and authorizes Manager to disclose the
identity of the Owner of the Property to any such officials and agrees to
indemnify, protect, defend, save and hold Manager and the other Indemnified
Parties harmless of and from any and all Losses that may be imposed on them or
any of them by reason of the failure of Owner to correct any present or future
violation or alleged violation of any and all present or future laws,
ordinances, statutes, or regulations of any public authority or official
thereof, having or claiming to have jurisdiction thereover, of which it has
actual notice. In the event it is alleged or charged that any Improvement or any
equipment on a Property or any act or failure to act by Owner with respect to
the Property or the sale, rental, or other disposition thereof fails to comply
with, or is in violation of, any of the requirements of any constitutional
provision, statute, ordinance, law, or regulation of any governmental body or
any order or ruling of any public authority or official thereof having or
claiming to have jurisdiction thereover, and Manager, in its sole and absolute
discretion, considers that the action or position of Owner, with respect thereto
may result in damage or liability to Manager, Manager shall have the right to
cancel this Agreement at any time by written notice to Owner of its election so
to do, which cancellation shall be effective upon the service of such notice.
Such cancellation shall not release the indemnities of Owner set forth in this
Agreement and shall not terminate any liability or obligation of Owner to
Manager for any payment, reimbursement, or other sum of money then due and
payable to Manager hereunder.

3.8     EXTRAORDINARY PAYMENTS. Owner agrees to give adequate advance written
notice to Manager if Owner desires that Manager make any extraordinary payment,
out of Gross Revenue, to the extent funds are available after the payment of
Manager's compensation as provided for herein and all operational expenses, of
mortgage indebtedness, general taxes, special assessments, or fire, boiler or
any other insurance premiums.

                                      -9-
<PAGE>

                                   ARTICLE IV

                                    EXPENSES

4.1     OWNER'S EXPENSES. Except as otherwise specifically provided, all costs
and expenses incurred hereunder by Manager in fulfilling its duties to Owner
shall be for the account of and on behalf of Owner. Such costs and expenses
shall include the wages and salaries and other employee-related expenses of all
on-site and off-site employees of Manager who are engaged in the operation,
management, maintenance and leasing or access control of the Properties,
including taxes, insurance and benefits relating to such employees, and legal,
travel and other out-of-pocket expenses that are directly related to the
management of specific Properties. All costs and expenses for which Owner is
responsible under this Management Agreement shall be paid by Manager out of the
Account. In the event the Account does not contain sufficient funds to pay all
said expenses, Owner shall fund all sums necessary to meet such additional costs
and expenses.

4.2     MANAGER'S EXPENSES. Manager shall, out of its own funds, pay all of its
general overhead and administrative expenses.

                                    ARTICLE V

                             MANAGER'S COMPENSATION

5.1     MANAGEMENT AND LEASING FEES. Commencing on the date hereof, Owner shall
pay Manager property management fees in an amount equal to the lesser of (a)
fees which are competitive for similar services in the same geographic area or
(b) (1) in the case of industrial and commercial properties which are not leased
on a long-term (ten or more years) net lease basis, four and one-half percent
(4.5%) of Gross Revenues and (2) in the case of industrial and commercial
properties which are leased on a long-term (ten or more years) net lease basis,
one percent (1.0%) of Gross Revenues plus a one-time initial leasing fee of
three percent (3.0%) of Gross Revenues on each lease payable over the first five
full years of the original term of the lease. As used herein, the term "net
lease" shall mean a lease which requires the tenant to coordinate and pay
directly all real estate taxes, sales and use taxes, utilities, insurance and
other operating expenses relating to the leased property. In addition, except to
the extent that compensation for leasing services is specifically included in
the foregoing property management fees, Owner shall also pay Manager a separate
fee for the leases of new tenants and renewals of leases with existing tenants
in an amount not to exceed the fee customarily charged by others rendering
similar services in the same geographic area; provided, however, that in no
event may the aggregate of all property management fees and leasing fees paid to
Manager exceed six percent (6.0%) of Gross Revenues, and further provided that
the foregoing limitation is not intended to preclude the payment of a separate
competitive fee for the one-time initial rent-up or leasing-up of a newly
constructed property or the total rehabilitation of a property if such service
is not included in the purchase price of the property. The property management
fees payable hereunder shall be paid on a monthly basis from the rental income
received from the Properties over the term of this Management Agreement.
Manager's compensation under this Section 5.1 shall apply to all renewals,
extensions or expansions of Leases that Manager has originally negotiated. In
the event Manager assists with planning and coordinating the construction of any
tenant-paid finish-out or improvements, Manager shall be entitled to receive
from any such tenant an amount equal to not greater than five percent (5.0%) of
the cost of such tenant improvements.

5.2     AUDIT ADJUSTMENT. If any audit of the records, books or accounts
relating to the Properties discloses an overpayment or underpayment of
management and leasing fees, Owner or Manager shall promptly pay to the other
party the amount of such overpayment or underpayment, as the case may be. If

                                      -10-
<PAGE>

such audit discloses an overpayment of management and leasing fees for any
fiscal year of more than the correct fees for such fiscal year, Manager shall
bear the cost of such audit.

                                   ARTICLE VI

                          INSURANCE AND INDEMNIFICATION

6.1     INSURANCE TO BE CARRIED.

        (a)     Manager shall obtain and keep in full force and effect insurance
on the Properties against such hazards as Owner and Manager shall deem
appropriate, but in any event insurance sufficient to comply with the Leases and
Ownership Agreements shall be maintained. All liability policies shall provide
sufficient insurance satisfactory to both Owner and Manager and shall contain
waivers of subrogation for the benefit of Manager.

        (b)     Manager shall obtain and keep in full force and effect, in
accordance with the laws of the state in which each Property is located,
employer's liability insurance applicable to and covering all employees of
Manager at the Properties and all persons engaged in the performance of any work
required hereunder, and Manager shall furnish Owner certificates of insurers
naming Owner as a co-insured and evidencing that such insurance is in effect. If
any work under this Management Agreement is subcontracted as permitted herein,
Manager shall include in each subcontract a provision that the subcontractor
shall also furnish Owner with such a certificate.

6.2     INSURANCE EXPENSES. Premiums and other expenses of such insurance, as
well as any applicable payments in respect of deductibles shall be borne by
Owner.

6.3     COOPERATION WITH INSURERS. Manager shall cooperate with and provide
reasonable access to the Properties to representatives of insurance companies
and insurance brokers or agents with respect to insurance that is in effect or
for which application has been made. Manager shall use its best efforts to
comply with all requirements of insurers.

6.4     ACCIDENTS AND CLAIMS. Manager shall promptly investigate and shall
report in detail to Owner all accidents, claims for damage relating to
Ownership, operation or maintenance of the Properties, and any damage or
destruction to the Properties and the estimated costs of repair thereof, and
shall prepare for approval by Owner all reports required by an insurance company
in connection with any such accident, claim, damage, or destruction. Such
reports shall be given to Owner promptly, and any report not so given within ten
(10) days after the occurrence of any such accident, claim, damage or
destruction shall be noted in the monthly operating statement delivered to Owner
pursuant to Section 2.5(b). Manager is authorized to settle any claim against an
insurance company arising out of any policy and, in connection with such claim,
to execute proofs of loss and adjustments of loss and to collect and receipt for
loss proceeds.

6.5     INDEMNIFICATION. Manager shall hold Owner harmless from and indemnify
and defend Owner against any and all claims or liability for any injury or
damage to any person or property whatsoever for which Manager is responsible
occurring in, on, or about the Properties, including, without limitation, the
Improvements when such injury or damage shall be caused by the negligence of
Manager, its agents, servants, or employees, except to the extent that Owner
recovers insurance proceeds with respect to such matter. Owner will indemnify
and hold Manager harmless against all liability for injury to persons and damage
to property caused by Owner's negligence and which did not result from the
negligence or misconduct of Manager, except to the extent Manager recovers
insurance proceeds with respect to such matter.

                                      -11-
<PAGE>

                                   ARTICLE VII

                              TERM AND TERMINATION

7.1     TERM. This Agreement shall commence on the date first above written and
shall continue until the seventh (7th) anniversary of such date and thereafter
for successive seven (7) year renewal periods, unless on or before 30 (thirty)
days prior to the date last above mentioned or on or before 30 (thirty) days
prior to the expiration of any such renewal period, Manager shall notify Owner
in writing that it elects to terminate this Agreement, in which case this
Agreement shall be thereby terminated on said last mentioned date. In addition,
and notwithstanding the foregoing, Owner may terminate this Agreement at any
time upon delivery of written notice to Manager not less than 30 (thirty) days
prior to the effective date of termination, in the event of (and only in the
event of) a showing by Owner of willful misconduct, gross negligence, or
deliberate malfeasance by Manager in the performance of Manager's duties
hereunder. In addition, either party may terminate this Agreement immediately
upon the occurrence of any of the following:

        (a)     A decree or order is rendered by a court having jurisdiction (i)
adjudging Manager as bankrupt or insolvent, or (ii) approving as properly filed
a petition seeking reorganization, readjustment, arrangement, composition or
similar relief for Manager under the federal bankruptcy laws or any similar
applicable law or practice, or (iii) appointing a receiver or liquidator or
trustee or assignee in bankruptcy or insolvency of Manager or a substantial part
of the property of Manager, or for the winding up or liquidation of its affairs,
or

        (b)     Manager (i) institutes proceedings to be adjudicated a voluntary
bankrupt or an insolvent, (ii) consents to the filing of a bankruptcy proceeding
against it, (iii) files a petition or answer or consent seeking reorganization,
readjustment, arrangement, composition or relief under any similar applicable
law or practice, (iv) consents to the filing of any such petition, or to the
appointment of a receiver or liquidator or trustee or assignee in bankruptcy or
insolvency for it or for a substantial part of its property, (v) makes an
assignment for the benefit of creditors, (vi) is unable to or admits in writing
its inability to pay its debts generally as they become due unless such
inability shall be the fault of the other party, or (iv) takes corporate or
other action in furtherance of any of the aforesaid purposes.

7.2     MANAGER'S OBLIGATIONS UPON TERMINATION. Upon the termination of this
Management Agreement, Manager shall have the following duties:

        (a)     Manager shall deliver to Owner or its designee, all books and
records with respect to the Properties.

        (b)     Manager shall transfer and assign to Owner, or its designee, all
service contracts and personal property relating to or used in the operation and
maintenance of the Properties, except personal property paid for and owned by
Manager. Manager shall also, for a period of sixty (60) days immediately
following the date of such termination, make itself available to consult with
and advise Owner, or its designee, regarding the operation, maintenance and
leasing of the Properties.

        (c)     Manager shall render to Owner an accounting of all funds of
Owner in its possession and shall deliver to Owner a statement of management and
leasing fees claimed to be due Manager pursuant to Section 5.1 hereof and shall
cause funds of Owner held by Manager relating to the Properties to be paid to
Owner or its designee.

                                      -12-
<PAGE>

7.3     OWNER'S OBLIGATIONS UPON TERMINATION. Owner shall pay or reimburse
Manager for any sums of money due it under this Agreement for services and
expenses prior to termination of this Agreement. All provisions of this
Agreement that require Owner to have insured, or to protect, defend, save, hold
and indemnify or to reimburse Manager shall survive any expiration or
termination of this Agreement and, if Manager is or becomes involved in any
claim, proceeding or litigation by reason of having been Manager of Owner, such
provisions shall apply as if this Agreement were still in effect. The parties
understand and agree that Manager may withhold funds for sixty (60) days after
the end of the month in which this Agreement is terminated to pay bills
previously incurred but not yet invoiced and to close accounts. Should the funds
withheld be insufficient to meet the obligation of Manager to pay bills
previously incurred, Owner will, upon demand, advance sufficient funds to
Manager to ensure fulfillment of Manager's obligation to do so, within ten (10)
days of receipt of notice and an itemization of such unpaid bills.

                                  ARTICLE VIII

                                  MISCELLANEOUS

8.1     NOTICES. All notices, approvals, consents and other communications
hereunder shall be in writing, and, except when receipt is required to start the
running of a period of time, shall be deemed given when delivered in person or
on the fifth day after its mailing by either party by registered or certified
United States mail, postage prepaid and return receipt requested, to the other
party, at the addresses set forth after their respect name below or at such
different addresses as either party shall have theretofore advised the other
party in writing in accordance with this Section 8.1.

        Owner:      BEHRINGER HARVARD SHORT-TERM OPPORTUNITY FUND I LP
                    1323 North Stemmons Freeway, Suite 212
                    Dallas, Texas 75207
                    Attention: Robert M. Behringer, General Partner

        Manager:    HPT MANAGEMENT SERVICES LP
                    1323 North Stemmons Freeway, Suite 204
                    Dallas, Texas 75207
                    Attention: Chief Operating Officer

8.2     GOVERNING LAW; VENUE. This Management Agreement shall be governed by and
construed in accordance with the laws of the State of Texas, and any action
brought to enforce the agreements made hereunder or any action which arises out
of the relationship created hereunder shall be brought exclusively in Dallas
County, Texas.

8.3     ASSIGNMENT. Manager may delegate partially or in full its duties and
rights under this Management Agreement but only with the prior written consent
of Owner. Owner acknowledges and agrees that any or all of the duties of Manager
as contained herein may be delegated by Manager and performed by a person or
entity ("Submanager") with whom Manager contracts for the purpose of performing
such duties. Owner specifically grants Manager the authority to enter into such
a contract with a Submanager; provided that, unless Owner otherwise agrees in
writing with such Submanager, Owner shall have no liability or responsibility to
any such Submanager for the payment of the Submanager's fee or for reimbursement
to the Submanager of its expenses or to indemnify the Submanager in any manner
for any matter; and provided further that Manager shall require such Submanager
to agree, in the written agreement setting forth the duties and obligations of
such Submanager, to indemnify Owner for all Losses incurred by Owner as a result
of the gross negligence or willful misconduct of the Submanager, except that
such indemnity shall not be required to the extent that

                                      -13-
<PAGE>

Owner recovers insurance proceeds with respect to such matter. Any contract
entered into between Manager and a Submanager pursuant to this Section 8.3 shall
be consistent with the provisions of this Agreement, except to the extent Owner
otherwise specifically agrees in writing. This Management Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

8.4     THIRD PARTY LEASING SERVICES. Manager acknowledges that from time to
time Owner may determine that it is in the best interests of Owner to retain a
third party to provide certain leasing services with respect to certain
Properties and to compensate such third party for such leasing services. Upon
the prior written consent of Manager, Owner shall have the authority to enter
into such a contract for leasing services with a third party (a "Third Party
Leasing Agreement"); provided that Manager shall have no liability or
responsibility to Owner for any of the duties and obligations undertaken by such
party, and Owner agrees to indemnify Manager for all Losses incurred by Manager
as a result of acts of such third party pursuant to the Third Party Leasing
Agreement. To the extent that leasing services are specifically required to be
performed by a third party pursuant to such Third Party Leasing Agreement,
Manager shall have no obligation to perform such leasing services and Owner
shall have no obligation to Manager for leasing fees pursuant to Section 5.1
hereof.

8.5     THIRD PARTY MANAGEMENT SERVICES. Manager acknowledges that from time to
time Owner may acquire interests in Properties in which Owner does not control
the determination of the party that is engaged to provide property management
and other services to be provided by Manager with respect to all Properties
acquired by Owner hereunder. Upon the prior written consent of Manager, Owner
shall have the authority to acquire such non-controlling interests in Properties
for which a third party provides some or all of the services otherwise required
to be performed by Manager hereunder (a "Third Party Management Agreement");
provided that Manager shall have no liability or responsibility to Owner for any
of the duties and obligations undertaken by such third party, and Owner agrees
to indemnify Manager for all Losses incurred by Manager as a result of the acts
of such third party pursuant to the Third Party Management Agreement. To the
extent that property management and other services are specifically required to
be performed by a third party pursuant to such Third Party Management Agreement,
Manager shall have no obligation to perform such services and Owner shall have
no obligation to Manager for compensation for such services pursuant to Section
5.1 hereof.

8.6     NO WAIVER. The failure of Owner to seek redress for violation or to
insist upon the strict performance of any covenant or condition of this
Management Agreement shall not constitute a waiver thereof for the future.

8.7     AMENDMENTS. This Management Agreement may be amended only by an
instrument in writing signed by the party against whom enforcement of the
amendment is sought.

8.8     HEADINGS. The headings of the various subdivisions of this Management
Agreement are for reference only and shall not define or limit any of the terms
or provisions hereof.

8.9     COUNTERPARTS. This Management Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and it shall not be
necessary in making proof of this Management Agreement to produce or account for
more than one such counterpart.

8.10    ENTIRE AGREEMENT. This Management Agreement contains the entire
understanding and all agreements between Owner and Manager respecting the
management of the Properties, and supersedes and replaces the Original
Management Agreement in its entirety. There are no representations, agreements,
arrangements or understandings, oral or written, between Owner and Manager
relating to the management of the Properties that are not fully expressed
herein.

                                      -14-
<PAGE>

8.11    DISPUTES. If there shall be a dispute between Owner and Manager relating
to this Management Agreement resulting in litigation, the prevailing party in
such litigation shall be entitled to recover from the other party to such
litigation such amount as the court shall fix as reasonable attorneys' fees.

8.12    ACTIVITIES OF MANAGER. The obligations of Manager pursuant to the terms
and provisions of this Management Agreement shall not be construed to preclude
Manager from engaging in other activities or business ventures, whether or not
such other activities or ventures are in competition with Owner or the business
of Owner.

8.13    INDEPENDENT CONTRACTOR. Manager and Owner shall not be construed as
joint venturers or partners of each other pursuant to this Management Agreement,
and neither shall have the power to bind or obligate the other except as set
forth herein. In all respects, the status of Manger to Owner under this
Agreement is that of an independent contractor.

8.14    NO THIRD-PARTY RIGHTS. Nothing expressed or referred to in this
Management Agreement will be construed to give any Person other than the parties
to this Management Agreement any legal or equitable right, remedy or claim under
or with respect to this Management Agreement or any provision of this Management
Agreement, except such rights as shall inure to a successor or permitted
assignee pursuant to Section 8.3.

8.15    OWNERSHIP OF PROPRIETARY PROPERTY. The Manager retains ownership of and
reserves all Intellectual Property Rights in the Proprietary Property. To the
extent that Owner has or obtains any claim to any right, title or interest in
the Proprietary Property, including without limitation in any suggestions,
enhancements or contributions that Owner may provide regarding the Proprietary
Property, Owner hereby assigns and transfers exclusively to the Manager all
right, title and interest, including without limitation all Intellectual
Property Rights, free and clear of any liens, encumbrances or licenses in favor
of Owner or any other party, in and to the Proprietary Property. In addition, at
the Manager's expense, Owner will perform any acts that may be deemed desirable
by the Manager to evidence more fully the transfer of ownership of right, title
and interest in the Proprietary Property to the Manager, including but not
limited to the execution of any instruments or documents now or hereafter
requested by the Manager to perfect, defend or confirm the assignment described
herein, in a form determined by the Manager.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                      -15-
<PAGE>

        IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Property Management and Leasing Agreement as of the date first above written.

                                   BEHRINGER HARVARD SHORT-TERM
                                     OPPORTUNITY FUND I LP

                                   By:
                                       -----------------------------------------
                                       Robert M. Behringer, Its General Partner

                                   By:  Behringer Harvard Advisors II LP,
                                          Its General Partner

                                        By:  Harvard Property Trust, LLC
                                             Its General Partner

                                             By:
                                                --------------------------------
                                             Robert M. Behringer, President

                                   HPT MANAGEMENT SERVICES LP

                                   By:  IMS, LLC, Its General Partner

                                             By:
                                                --------------------------------
                                                Gary S. Bresky
                                                Chief Operating Officer

                                      -16-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]