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                                                                    EXHIBIT 10.2
                              AMENDED AND RESTATED
                               ADVISORY AGREEMENT

        This AMENDED AND RESTATED ADVISORY AGREEMENT (this "AGREEMENT") is
entered into on this the ____ day of _____________, 2005, by and between
BEHRINGER HARVARD REIT I, INC., a Maryland corporation (the "COMPANY"), and
BEHRINGER ADVISORS LP, a Texas limited partnership (the "ADVISOR").

                               W I T N E S S E T H

        WHEREAS, the Company has issued and will continue to be issuing shares
of its common stock, par value $.0001, to the public, such shares to be
registered with the Securities and Exchange Commission and may subsequently
issue additional securities;

        WHEREAS, the Company and the Advisor previously entered into that
certain Advisory Agreement dated February 14, 2003 (the "Original Advisory
Agreement") and it is intended that this Agreement amend and restate the
Original Advisory Agreement effective as of and for all periods after the date
hereof ;

        WHEREAS, the Company intends to qualify as a real estate investment
trust and to invest its funds in investments permitted by the terms of the
Company's Articles of Incorporation and Sections 856 through 860 of the Internal
Revenue Code;

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

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

        NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

                                   ARTICLE ONE

                                   DEFINITIONS

        The following defined terms used in this Agreement shall have the
meanings specified below:

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

ACQUISITION FEES. Any and all fees and commissions, exclusive of Acquisition
Expenses but including the Acquisition and Advisory Fees, paid by any Person to
any other Person (including any fees or commissions paid by or to any Affiliate
of the Company or the Advisor) in connection with making or

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investing in Mortgages or the purchase, development or construction of an Asset,
including, without limitation, real estate commissions, selection fees,
Development Fees, Construction Fees, non-recurring management fees, loan fees,
points or any other fees of a similar nature. Excluded shall be Development Fees
and Construction Fees paid to any Person not affiliated with the Sponsor in
connection with the actual development and construction of any Property.

ACQUISITION AND ADVISORY FEES. The fees payable to the Advisor pursuant to
Section 3.01(b).

ADVISOR. Behringer Advisors LP, a Texas limited partnership, any successor
advisor to the Company, or any Person to which Behringer Advisors LP or any
successor advisor subcontracts all or substantially all of its functions.

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

AGGREGATE ASSETS VALUE. The aggregate book value of the Assets at the time of
measurement before deducting depreciation, bad debts or other similar non-cash
reserves and without reduction for any debt secured by or relating to such
assets; provided, however, that during such periods in which the Company is
obtaining regular independent valuations of the current value of its net assets
for purposes of enabling fiduciaries of employee benefit plan stockholders to
comply with applicable Department of Labor reporting requirements, "Aggregate
Assets Value" will equal the greater of (i) the amount determined pursuant to
the foregoing or (ii) the Assets' aggregate valuation established by the most
recent such valuation report without reduction for depreciation, bad debts or
other non-cash reserves and without reduction for any debt secured by or
relating to such assets.

APPRAISED VALUE. Value according to an appraisal made by an Independent
Appraiser.

ARTICLES OF INCORPORATION. The Articles of Incorporation of the Company filed
with the Maryland State Department of Assessments and Taxation in accordance
with the Maryland General Corporation Law, as amended from time to time.

ASSETS. Properties, Mortgages and other direct or indirect investments in equity
interests in or loans secured by or otherwise relating to Real Property (other
than investments in bank accounts, money market funds or other current assets,
whether of the proceeds from an Offering or the sale of an Asset or otherwise)
owned by the Company, directly or indirectly through one or more of its
Affiliates or Joint Ventures.

ASSET MANAGEMENT FEE. The fee payable to the Advisor for day-to-day professional
management services in connection with the Company and its investments in Assets
pursuant to this Agreement.

AVERAGE INVESTED ASSETS. For a specified period, the average of the aggregate
book value of the Assets before deduction for depreciation, bad debts or other
non-cash reserves, computed by taking the average of such values at the end of
each month during such period; provided, however, that during such periods in
which the Company is obtaining regular independent valuations of the current
value of its net assets for purposes of enabling fiduciaries of employee benefit
plan stockholders to comply with applicable Department of Labor reporting
requirements, "Average Invested Assets" will equal the greater of (i) the

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amount determined pursuant to the foregoing or (ii) the Assets' aggregate
valuation established by the most recent such valuation report(s) without
reduction for depreciation, bad debts or other non-cash reserves.

BOARD. The Board of Directors of the Company.

BYLAWS. The bylaws of the Company, as the same are in effect from time to time.

CHANGE OF CONTROL. Any event (including, without limitation, issue, transfer or
other disposition of Shares of capital stock of the Company or equity interests
in the Partnership, merger, share exchange or consolidation) after which any
"person" (as that term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended) is or becomes the "beneficial owner" (as
defined in Rule 13d-j of the Securities Exchange Act of 1934, as amended),
directly or indirectly, of securities of the Company or the Partnership
representing greater than 50% or more of the combined voting power of the
Company's or the Partnership's then outstanding securities, respectively;
provided, that, a Change of Control shall not be deemed to occur as a result of
any widely distributed public offering of the Shares.

CLOSING PRICE. On any date, the last sale price for any class or series of the
Company's Shares, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, for such Shares,
in either case as reported in the principal consolidated transaction reporting
system with respect to Shares listed or admitted to trading on the NYSE or, if
such Shares are not listed or admitted to trading on the NYSE, as reported on
the principal consolidated transaction reporting system with respect to Shares
listed on the principal national securities exchange on which such Shares are
listed or admitted to trading or, if such Shares are not listed or admitted to
trading on any national securities exchange, the last quoted price on The Nasdaq
Stock Market, or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the principal automated
quotation system or other quotation service that may then be in use or, if such
Shares are not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in
such Shares selected by the Board.

CODE. Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean
such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as
in effect from time to time.

COMPANY. Behringer Harvard REIT I, Inc., a corporation organized under the laws
of the State of Maryland.

COMPANY VALUE. The actual value of the Company as a going concern based on the
difference between (a) the actual value of all of its assets as determined in
good faith by the Board, including a majority of the Independent Directors, and
(b) all of its liabilities as set forth on its then current balance sheet,
provided that (i) if such Company Value is being determined in connection with a
Change of Control that establishes the Company's net worth (e.g., a tender offer
for the Shares, sale of all of the Shares or a merger) then the Company Value
shall be the net worth established thereby and (ii) if such Company Value is
being determined in connection with a Listing, then the Company Value shall be
equal to the number of outstanding Shares multiplied by the Closing Price of a
single Common Share averaged over a period of 30 trading days during which the
Shares are listed or quoted for trading after the date of Listing. For purposes
hereof, a "trading day" shall be any day on which the NYSE is open for trading
whether or not the Shares are then Listed on the NYSE and whether or not there
is an actual trade of such Shares on any such day. If the Advisor disagrees as
to the Company Value as determined by the Board, then each of the Advisor and
the Company (determined by a majority of the Independent Directors) shall name

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one appraiser and the two named appraisers shall promptly agree in good faith to
the appointment of one other appraiser whose determination of the Company Value
shall be final and binding on the parties as to the Company Value. The cost of
such appraisal shall be split evenly between the Company and the Advisor.

COMPETITIVE REAL ESTATE COMMISSION. A real estate or brokerage commission paid
or, if no such commission is paid, the amount that customarily would be paid for
the purchase or sale of a Property that is reasonable, customary, and
competitive in light of the size, type and location of the Property.

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

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

CONTRACT SALES PRICE. The total consideration provided for in the sales contract
for the sale of a Property.

DEALER MANAGER. Behringer Securities LP, an Affiliate of the Advisor, or such
Person selected by the Board to act as the dealer manager for an Offering.

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

DIRECTOR. A member of the Board.

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

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

INDEPENDENT APPRAISER. A Person with no material current or prior business or
personal relationship with the Advisor or the Directors and who is a qualified
appraiser of Real Property of the type held by the Company or of other Assets as
determined by the Board. Membership in a nationally recognized appraisal society
such as the American Institute of Real Estate Appraisers or the Society of Real
Estate Appraisers shall be conclusive evidence of such qualification as to Real
Property.

INDEPENDENT DIRECTOR. A Director who is not on the date of determination, and
within the last two years from the date of determination has not been, directly
or indirectly associated with the Sponsor, the Company, the Advisor or any of
their Affiliates by virtue of (i) ownership of an interest in the Sponsor, the
Advisor or any of their Affiliates, other than the Company, (ii) employment by
the Sponsor, the Company, the Advisor or any of their Affiliates, (iii) service
as an officer or director of the Sponsor, the

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Advisor or any of their Affiliates, other than as a Director of the Company,
(iv) performance of services, other than as a Director of the Company, (v)
service as a director or trustee of more than three real estate investment
trusts organized by the Sponsor or advised by the Advisor, or (vi) maintenance
of a material business or professional relationship with the Sponsor, the
Advisor or any of their Affiliates. A business or professional relationship is
considered material if the aggregate gross revenue derived by the Director from
the Sponsor, the Advisor and their Affiliates exceeds 5% of either the
Director's annual gross income during either of the last two years or the
Director's net worth on a fair market value basis. An indirect association with
the Sponsor or the Advisor shall include circumstances in which a Director's
spouse, parent, child, sibling, mother- or father-in-law, son- or
daughter-in-law, or brother- or sister-in-law is or has been associated with the
Sponsor, the Advisor, any of their Affiliates, or the Company.

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

INVESTED CAPITAL. The amount calculated by multiplying the total number of
Shares outstanding by $10.00, reduced by the portion of any Distribution (other
than any Stock Dividends) that is attributable to Net Sales Proceeds and by any
amounts paid by the Company to repurchase Shares pursuant to the Company's plan
for repurchase of Shares.

JOINT VENTURES. The joint venture or partnership arrangements in which the
Company or the Partnership is a co-venturer or general partner, which are
established to acquire or hold Assets.

LISTING OR LISTED. The listing of the Shares of the Company on a national
securities exchange or the quotation of shares on The Nasdaq Stock Market. Upon
such Listing, the Shares shall be deemed Listed.

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

NASAA GUIDELINES. The Statement of Policy Regarding Real Estate Investment
Trusts of the North American Securities Administrators Association, Inc.

NET INCOME. For any period, the Company's total revenues applicable to such
period, less the total expenses applicable to such period other than additions
to reserves for depreciation, bad debts or other similar non-cash reserves and
excluding any gain from the sale of the Assets.

NET SALES PROCEEDS. In the case of a transaction described in clause (i)(A) of
the definition of Sale, the proceeds of any such transaction less the amount of
selling expenses incurred by or on behalf of the Company, including all real
estate commissions, closing costs and legal fees and expenses. In the case of a
transaction described in clause (i)(B) of such definition, Net Sales Proceeds
means the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Company, including any legal fees and expenses
and other selling expenses incurred in connection with such transaction. In the
case of a transaction described in clause (i)(C) of such definition, Net Sales
Proceeds means the proceeds of any such transaction actually distributed to the
Company from the Joint Venture less the amount of any selling expenses,
including legal fees and expenses incurred by or on behalf of the Company (other
than those paid by the Joint Venture). In the case of a transaction or series of

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transactions described in clause (i)(D) of the definition of Sale, Net Sales
Proceeds means the proceeds of any such transaction (including the aggregate of
all payments under a Mortgage or in satisfaction thereof other than regularly
scheduled interest payments to the extent such interest accrues at a rate of
less than ten percent (10%) per annum) less the amount of selling expenses
incurred by or on behalf of the Company, including all commissions closing costs
and legal fees and expenses. In the case of a transaction described in clause
(i)(E) of such definition, Net Sales Proceeds means the proceeds of any such
transaction less the amount of selling expenses incurred by or on behalf of the
Company, including any legal fees and expenses and other selling expenses
incurred in connection with such transaction. In the case of a transaction
described in clause (ii) of the definition of Sale, Net Sales Proceeds means the
proceeds of such transaction or series of transactions less all amounts
generated thereby which are reinvested in one or more Assets within 180 days
thereafter and less the amount of any real estate commissions, closing costs,
and legal fees and expenses and other selling expenses incurred by or allocated
to the Company in connection with such transaction or series of transactions.
Net Sales Proceeds shall also include any consideration (including non-cash
consideration such as stock, notes, or other property or securities) that the
Company determines, in its discretion, to be economically equivalent to proceeds
of a Sale, valued in the reasonable determination of the Company. Net Sales
Proceeds shall not include any reserves established by the Company in its sole
discretion.

NYSE. The New York Stock Exchange, Inc.

OFFERING. Any public offering of Shares pursuant to an effective registration
statement filed under the Securities Act during periods from and after the date
hereof.

ORGANIZATION AND OFFERING EXPENSES. Any and all costs and expenses, other than
Selling Commissions and the dealer manager fee (as in effect from time to time),
incurred by and to be paid by the Company, the Advisor or any Affiliate in
connection with the formation, qualification and registration of the Company and
the marketing and distribution of its Shares, including, without limitation, the
following: legal, accounting and escrow fees; printing, amending, supplementing,
mailing and distributing costs; filing, registration and qualification fees and
taxes; telecopier and telephone costs; and all advertising and marketing
expenses, including the costs related to investor and broker-dealer sales
meetings.

PARTNERSHIP. Behringer Harvard Operating Partnership I LP, a Texas limited
partnership, through which the Company may own Assets.

PERFORMANCE FEE. The fee payable to the Advisor upon termination of this
Agreement under certain circumstances if certain performance standards have been
met pursuant to Section 4.03(b) or (c).

PERSON. An individual, corporation, association, business trust, estate, trust,
partnership, limited liability company or other legal entity.

PROPERTY OR PROPERTIES. As the context requires, any, or all, respectively, of
the Real Property acquired by the Company, either directly or indirectly
(whether through joint venture arrangements or other partnership or investment
interests).

PROPRIETARY PROPERTY. All modeling algorithms, tools, computer programs,
know-how, methodologies, processes, technologies, ideas, concepts, skills,
routines, subroutines, operating instructions and other materials and aides used
in performing the duties set forth in Section 2.02 that relate to investment
advice regarding current and potential Assets, and all modifications,
enhancements and derivative works of the foregoing.

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PROSPECTUS. Prospectus has the meaning set forth in Section 2(10) of the
Securities Act, including a preliminary prospectus, an offering circular as
described in Rule 256 of the General Rules and Regulations under the Securities
Act or, in the case of an intrastate offering, any document by whatever name
known, utilized for the purpose of offering and selling securities of the
Company to the public.

REAL PROPERTY. Land, rights in land (including leasehold interests), and any
buildings, structures, improvements, furnishings, fixtures and equipment located
on or used in connection with land and rights or interests in land.

REIT. A corporation, trust, association or other legal entity (other than a real
estate syndication) that is engaged primarily in investing in equity interests
in real estate (including fee ownership and leasehold interests) or in loans
secured by real estate or both in accordance with Sections 856 through 860 of
the Code.

SALE OR SALES. (i) Any transaction or series of transactions whereby: (A) the
Company or the Partnership directly or indirectly (except as described in other
subsections of this definition) sells, grants, transfers, conveys, or
relinquishes its ownership of any Property or portion thereof, including the
lease of any Property consisting of a building only, and including any event
with respect to any Property which gives rise to a significant amount of
insurance proceeds or condemnation awards; (B) the Company or the Partnership
directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes its ownership of
all or substantially all of the interest of the Company or the Partnership in
any Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture
directly or indirectly (except as described in other subsections of this
definition) in which the Company or the Partnership as a co-venturer or partner
sells, grants, transfers, conveys, or relinquishes its ownership of any Property
or portion thereof, including any event with respect to any Property which gives
rise to insurance claims or condemnation awards; (D) the Company or the
Partnership directly or indirectly (except as described in other subsections of
this definition) sells, grants, conveys or relinquishes its interest in any
Mortgage or portion thereof (including with respect to any Mortgage, all
repayments thereunder or in satisfaction thereof other than regularly scheduled
interest payments) and any event with respect to a Mortgage which gives rise to
a significant amount of insurance proceeds or similar awards; or (E) the Company
or the Partnership directly or indirectly (except as described in other
subsections of this definition) sells, grants, transfers, conveys, or
relinquishes its ownership of any other Asset not previously described in this
definition or any portion thereof, but (ii) not including any transaction or
series of transactions specified in clause (i) (A) through (E) above in which
the proceeds of such transaction or series of transactions are reinvested in one
or more Assets within 180 days thereafter.

SECURITIES ACT. The Securities Act of 1933, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Securities Act
shall mean such provision as in effect from time to time, as the same may be
amended, and any successor provision thereto, as interpreted by any applicable
regulations as in effect from time to time.

SELLING COMMISSIONS. Any and all commissions payable to underwriters, dealer
managers or other broker-dealers in connection with the sale of Shares,
including, without limitation, commissions payable to Behringer Securities LP.

SHARES. Any shares of the Company's common stock, par value $.0001 per share.

SOLICITING DEALERS. Broker-dealers who are members of the National Association
of Securities Dealers, Inc., or that are exempt from broker-dealer registration,
and who, in either case, have executed participating broker or other agreements
with the Dealer Manager to sell Shares.

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SPONSOR. Robert M. Behringer.

STOCK DIVIDEND. Any dividend or other distribution paid to stockholders of the
Company in the form of additional Shares.

STOCKHOLDERS. The record holders of the Company's Shares as maintained in the
books and records of the Company or its transfer agent.

STOCKHOLDERS' 9% RETURN. As of any date, an aggregate amount equal to a 9%
cumulative, noncompounded, annual return on Invested Capital (calculated like
simple interest); provided, however, that for purposes of calculating the
Stockholders' 9% Return, any Stock Dividend shall not be included as a
Distribution; and provided further that for purposes of determining the
Stockholders' 9% Return, the return for each portion of the Invested Capital
shall commence for purposes of the calculation upon the issuance of the shares
issued in connection with such capital.

SUBORDINATED DISPOSITION FEE. The fee payable to the Advisor for services
provided in connection with the Sale of one or more Properties pursuant to
Section 3.01(c).

SUBORDINATED INCENTIVE LISTING FEE. The fee payable to the Advisor under certain
circumstances if the Shares are Listed pursuant to Section 3.01(e).

SUBORDINATED SHARE OF NET SALES PROCEEDS. The fee payable to the Advisor under
certain circumstances following receipt of Net Sales Proceeds pursuant to
Section 3.01(d).

TERMINATION DATE. The date of termination of this Agreement.

TOTAL OPERATING EXPENSES. All costs and expenses paid or incurred by the
Company, as determined under generally accepted accounting principles, which are
in any way related to the operation of the Company or to Company business,
including the Asset Management Fee, but excluding (i) the expenses of raising
capital such as Organization and Offering Expenses, legal, audit, accounting,
underwriting, brokerage, listing, registration, and other fees, printing and
other such expenses and tax incurred in connection with the issuance,
distribution, transfer, registration and Listing of the Shares, (ii) interest
payments, (iii) taxes, (iv) non-cash expenditures such as depreciation,
amortization and bad debt reserves, (v) the Subordinated Share of Net Sales
Proceeds, (vi) the Performance Fee, (vii) the Subordinated Incentive Listing
Fee, (viii) Acquisition Fees and Acquisition Expenses, (ix) real estate
commissions on the Sale of Property, and (x) other fees and expenses connected
with the acquisition, disposition, management and ownership of real estate
interests, mortgage loans or other property (including the costs of foreclosure,
insurance premiums, legal services, maintenance, repair and improvement of
property).

2%/25% GUIDELINES. The requirement pursuant to the NASAA Guidelines that, in any
12 month period, Total Operating Expenses not exceed the greater of 2% of
Average Invested Assets during such 12 month period or 25% of Net Income over
the same 12 month period.

                                   ARTICLE II

                                   THE ADVISOR

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

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2.02    DUTIES OF THE ADVISOR. The Advisor undertakes to use its best efforts to
present to the Company potential investment opportunities and to provide a
continuing and suitable investment program consistent with the investment
objectives and policies of the Company as determined and adopted from time to
time by the Board. In performance of this undertaking, subject to the
supervision of the Board and consistent with the provisions of the Company's
most recent Prospectus for Shares, the Articles of Incorporation and Bylaws, the
Advisor shall, either directly or by engaging an Affiliate of the Advisor or
other Person:

        (a)     serve as the Company's investment and financial advisor and
        provide research and economic and statistical data in connection with
        the Assets and investment policies;

        (b)     provide the daily management of the Company and perform and
        supervise the various administrative functions reasonably necessary for
        the management and operations of the Company;

        (c)     maintain and preserve the books and records of the Company,
        including stock books and records reflecting a record of the
        Stockholders and their ownership of the Company's uncertificated Shares,
        if any, and acting as transfer agent for the Company's Shares;

        (d)     investigate, select, and, on behalf of the Company, engage and
        conduct business with such Persons as the Advisor deems necessary to the
        proper performance of its obligations hereunder, including but not
        limited to consultants, accountants, correspondents, lenders, technical
        advisors, attorneys, brokers, underwriters, corporate fiduciaries,
        escrow agents, depositaries, custodians, agents for collection,
        insurers, insurance agents, banks, builders, developers, property
        owners, mortgagors, property management companies, transfer agents and
        any and all agents for any of the foregoing, including Affiliates of the
        Advisor, and Persons acting in any other capacity deemed by the Advisor
        necessary or desirable for the performance of any of the foregoing
        services, including but not limited to entering into contracts in the
        name of the Company with any of the foregoing;

        (e)     consult with the officers and the Board and assist the Board in
        the formulation and implementation of the Company's financial policies,
        and, as necessary, furnish the Board with advice and recommendations
        with respect to the making of investments consistent with the investment
        objectives and policies of the Company and in connection with any
        borrowings proposed to be undertaken by the Company;

        (f)     subject to the provisions of Sections 2.02(h) and 2.03 hereof,
        (i) locate, analyze and select potential investments in Assets, (ii)
        structure and negotiate the terms and conditions of transactions
        pursuant to which investment in Assets will be made; (iii) make
        investments in Assets on behalf of the Company or the Partnership in
        compliance with the investment objectives and policies of the Company;
        (iv) arrange for financing and refinancing and make other changes in the
        asset or capital structure of, and dispose of, reinvest the proceeds
        from the sale of, or otherwise deal with the investments in, Assets; and
        (v) enter into leases of Property and service contracts for Assets and,
        to the extent necessary, perform all other operational functions for the
        maintenance and administration of such Assets, including the servicing
        of Mortgages;

        (g)     provide the Board with periodic reports regarding prospective
        investments in Assets;

        (h)     obtain the prior approval of the Board (including a majority of
        all Independent Directors) for any and all investments in Assets;

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        (i)     negotiate on behalf of the Company with banks or lenders for
        loans to be made to the Company, negotiate on behalf of the Company with
        investment banking firms and broker-dealers, and negotiate private sales
        of Shares and other securities of the Company or obtain loans for the
        Company, as and when appropriate, but in no event in such a way so that
        the Advisor shall be acting as broker-dealer or underwriter; and
        provided, further, that any fees and costs payable to third parties
        incurred by the Advisor in connection with the foregoing shall be the
        responsibility of the Company;

        (j)     obtain reports (which may be prepared by or for the Advisor or
        its Affiliates), where appropriate, concerning the value of investments
        or contemplated investments of the Company in Assets;

        (k)     from time to time, or at any time reasonably requested by the
        Board, make reports to the Board of its performance of services to the
        Company under this Agreement;

        (l)     provide the Company with all necessary cash management services;

        (m)     deliver to or maintain on behalf of the Company copies of all
        appraisals obtained in connection with the investments in Assets;

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

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

        (p)     provide office space, equipment and personnel as required for
        the performance of the foregoing services as Advisor;

        (q)     prepare on behalf of the Company all reports and returns
        required by the Securities and Exchange Commission, Internal Revenue
        Service and other state or federal governmental agencies; and

        (r)     do all things necessary to assure its ability to render the
        services described in this Agreement.

2.03    AUTHORITY OF ADVISOR.

        (a)     Pursuant to the terms of this Agreement (including the
        restrictions included in this Section 2.03 and in Section 2.06), and
        subject to the continuing and exclusive authority of the Board over the
        management of the Company, the Board hereby delegates to the Advisor the
        authority to (i) locate, analyze and select investment opportunities,
        (ii) structure the terms and conditions of transactions pursuant to
        which investments will be made or acquired for the Company or the
        Partnership, (iii) acquire Properties, make and acquire Mortgages and
        invest in other Assets in compliance with the investment objectives and
        policies of the Company, (iv) arrange for financing or refinancing of
        Assets, (v) enter into leases for the Properties and service contracts
        for the Assets, including oversight of Affiliated companies that perform

                                      -10-
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        property management or other services for the Company, (vi) oversee
        non-affiliated and Affiliated property managers and other non-affiliated
        and Affiliated Persons who perform services for the Company, and (vii)
        undertake accounting and other record-keeping functions at the Asset
        level.

        (b)     Notwithstanding the foregoing, any investment in Assets by the
        Company or the Partnership (as well as any financing acquired by the
        Company or the Partnership in connection with such investment), will
        require the prior approval of the Board (including a majority of the
        Independent Directors).

        (c)     The prior approval of a majority of the Independent Directors
        and a majority of the Board not otherwise interested in the transaction
        will be required for each transaction with the Advisor or its
        Affiliates.

        (d)     If a transaction requires approval by the Board, the Advisor
        will deliver to the Directors all documents required by them to properly
        evaluate the proposed transaction.

        The Board may, at any time upon the giving of notice to the Advisor,
modify or revoke the authority set forth in this Section 2.03. If and to the
extent the Board so modifies or revokes the authority contained herein, the
Advisor shall henceforth submit to the Board for prior approval such proposed
transactions involving investments in Assets as thereafter require prior
approval, provided however, that such modification or revocation shall be
effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed the Company prior to the date of
receipt by the Advisor of such notification.

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

2.05    RECORDS; ACCESS. The Advisor shall maintain appropriate records of all
its activities hereunder and make such records available for inspection by the
Board and by counsel, auditors and authorized agents of the Company, at any time
or from time to time during normal business hours. The Advisor shall at all
reasonable times have access to the books and records of the Company.

2.06    LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would (a) adversely affect the
status of the Company as a REIT, (b) subject the Company to regulation under the
Investment Company Act of 1940, as amended, or (c) violate any law, rule,
regulation or statement of policy of any governmental body or agency having
jurisdiction over the Company, the Shares or any of the Company's securities, or
otherwise not be permitted by the Articles of Incorporation or Bylaws, except if
such action shall be ordered by the Board, in which case the Advisor shall
notify promptly the Board of the Advisor's judgment of the potential impact of
such action and shall refrain from taking such action until it receives further
clarification or instructions from the Board. In such event the Advisor shall
have no liability for acting in accordance with the specific instructions of the
Board so given. The Advisor, its directors, officers, employees and
stockholders, and the directors, officers, employees and stockholders of the
Advisor's Affiliates shall not be liable to the Company or to the Board or
Stockholders for any act or omission by the Advisor, its directors, officers,
employees or stockholders, or

                                      -11-
<PAGE>

for any act or omission of any Affiliate of the Advisor, its directors, officers
or employees or stockholders except as provided in Section 5.02 of this
Agreement.

2.07    RELATIONSHIP WITH DIRECTORS. Directors, officers and employees of the
Advisor or an Affiliate of the Advisor may serve as Directors, officers or
employees of the Company, except that no director, officer or employee of the
Advisor or its Affiliates who also is a Director shall receive any compensation
from the Company for serving as a Director other than reasonable reimbursement
for travel and related expenses incurred in attending meetings of the Board.

2.08    OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent
the Advisor or its Affiliates from engaging in other activities, including,
without limitation, the rendering of advice to other Persons (including other
REITs) and the management of other programs advised, sponsored or organized by
the Advisor or its Affiliates; nor shall this Agreement limit or restrict the
right of any director, officer, employee, or stockholder of the Advisor or its
Affiliates to engage in any other business or to render services of any kind to
any other Person. The Advisor may, with respect to any investment in which the
Company is a participant, also render advice and service to each and every other
participant therein. The Advisor shall report to the Board the existence of any
condition or circumstance, existing or anticipated, of which it has knowledge,
which creates or could create a conflict of interest between the Advisor's
obligations to the Company and its obligations to or its interest in any other
Person. The Advisor or its Affiliates shall promptly disclose to the Board
knowledge of such condition or circumstance. If the Sponsor, Advisor, Director
or Affiliates thereof have sponsored other investment programs with similar
investment objectives which have investment funds available at the same time as
the Company, it shall be the duty of the Board (including the Independent
Directors) to adopt the method set forth in the Company's most recent Prospectus
for its Shares or another reasonable method by which investments are to be
allocated to the competing investment entities and to use their best efforts to
apply such method fairly to the Company.

                                   ARTICLE III

                                  COMPENSATION

3.01    FEES.

        (a)     ASSET MANAGEMENT FEE. The Company shall pay the Advisor a
        monthly Asset Management Fee on the 15th day of each month in an amount
        equal to 1/12th of 1% of Aggregate Assets Value as of the last day of
        the preceding month.

        (b)     ACQUISITION AND ADVISORY FEES. The Company shall pay the Advisor
        a fee in the amount of 2.5% of the Contract Purchase Price of each Asset
        as Acquisition and Advisory Fees payable at the time and in respect of
        funds expended for (i) the acquisition of an Asset, (ii) to the extent
        that such funds are capitalized, for the development, construction or
        improvement of an Asset, or (iii) the making of a Mortgage. The total of
        all Acquisition Fees and any Acquisition Expenses shall be limited in
        accordance with the Articles of Incorporation.

        (c)     SUBORDINATED DISPOSITION FEE. If the Advisor or an Affiliate
        provides a substantial amount of the services (as determined by a
        majority of the Independent Directors) in connection with the Sale of
        one or more Assets, the Advisor or such Affiliate shall receive, subject
        to the satisfaction of the condition outlined below, a Subordinated
        Disposition Fee in an amount (the "CONTINGENT SUBORDINATED DISPOSITION
        FEE") equal to (subject to the limitation in the following paragraph)
        (i) in the case of the sale of Property, the lesser of (A) one-half of a
        Competitive Real Estate Commission or (B) 3% of the sales price of such
        Property and (ii) in the case of the sale of

                                      -12-
<PAGE>

        any Asset other than Property, 3% of the sales price of such Asset or
        Assets. The Contingent Subordinated Disposition Fee will not be earned
        or paid unless and until the Stockholders have received total
        Distributions in an amount equal to or in excess of the sum of their
        aggregate Invested Capital plus the Stockholders' 9% Return. To the
        extent that, in any instance, the Contingent Subordinated Disposition
        Fees is not earned and paid due to the foregoing limitation, the
        Contingent Subordinated Disposition Fees that would have been earned and
        paid had the foregoing limitation not been in place at the time of a
        Sale shall be a contingent liability of the Company, which shall be paid
        if and only if the conditions set forth in this subparagraph 3.01(c)
        have been satisfied and, upon the satisfaction of such condition, the
        Company shall pay all such Contingent Subordination Disposition Fees as
        if such condition had been satisfied with respect to each such prior
        Sale.

        The Subordinated Disposition Fee may be payable in addition to real
        estate commissions paid to non-Affiliates, provided, however, that the
        total real estate commissions paid to all Persons by the Company
        (together with the Subordinated Disposition Fee) shall in no case exceed
        an amount equal to the lesser of (i) 6% of the Contract Sales Price of
        an Asset or (ii) the Competitive Real Estate Commission in respect of
        any Property.

        In the event this Agreement is terminated prior to such time as the
        Stockholders have received total Distributions in an amount equal to or
        in excess of the sum of their aggregate Invested Capital plus the
        Stockholders' 9% Return through the Termination Date, the Company Value
        shall be determined and any contingent liabilities for the payment of
        Contingent Subordinated Disposition Fees on Assets previously sold will
        be paid if the Company Value plus total Distributions received prior to
        the Termination Date equals or exceeds the sum of the aggregate Invested
        Capital plus the Stockholders' 9% Return through the Termination Date
        and then only to the extent of such excess.

        Following Listing, and as soon as practicable after determination of
        Market Value (defined below), any contingent liabilities for the payment
        of the Contingent Subordinated Disposition Fees on Assets previously
        sold will be earned and paid if and only if the Stockholders have
        received or been deemed to have received total Distributions in an
        amount equal to or in excess of the sum of the aggregate Invested
        Capital plus the Stockholders' 9% Return through the date of Listing.
        For purposes of the preceding sentence, in addition to actual
        Distributions received, Stockholders will be deemed to have received
        Distributions in the amount equal to the product of the total number of
        Shares outstanding and the average closing price of the Shares over the
        30-trading-day period beginning the date of Listing (the "MARKET
        VALUE"). Once any Contingent Subordinated Disposition Fees are actually
        paid, such amounts shall thereafter be referred to as "Subordinated
        Disposition Fees."

        (d)     SUBORDINATED SHARE OF NET SALES PROCEEDS. Prior to Listing but
        after the Stockholders have received total Distributions in an amount
        equal to the sum of their aggregate Invested Capital and Stockholders'
        9% Return, upon the consummation of any Sale, the Advisor shall receive
        a Subordinated Share of Net Sales Proceeds in an amount equal to 15% of
        Net Sales Proceeds less the amount by which the Company's debt for
        borrowed money exceeds the aggregate book value of the Company's assets
        after the sale of the Asset(s) in respect of which the Net Sales
        Proceeds is being determined.

        Following Listing, and as soon as practicable after determination of
        Market Value, if the Stockholders have received or been deemed to have
        received total Distributions in an amount equal to the sum of their
        aggregate Invested Capital and Stockholders' 9% Return through the date
        of Listing, the Advisor shall receive a Subordinated Share of Net Sales
        Proceeds in an

                                      -13-
<PAGE>

        amount equal to 15% of Net Sales Proceeds less the amount by which the
        Company's debt for borrowed money exceeds the aggregate book value of
        the Company's assets after the sale of the Asset(s) in respect of which
        the Net Sales Proceeds is being determined. For purposes of this
        subparagraph (d), in determining whether the Subordinated Share of Net
        Sales Proceeds is payable following Listing, in addition to actual
        Distributions received, Stockholders will be deemed to have received
        Distributions in the amount equal to the Market Value.

        (e)     SUBORDINATED INCENTIVE LISTING FEE. Following Listing, and as
        soon as practicable after determination of Market Value, the Advisor
        shall be entitled to receive a Subordinated Incentive Listing Fee
        payable in the form of an interest bearing promissory note (the "SILF
        NOTE") in a principal amount equal to 15% of the amount by which (i) the
        market value of the outstanding Shares, measured by taking the Market
        Value, plus the total of all Distributions paid to Stockholders from the
        Company's inception until the date of Listing, exceeds (ii) the sum of
        (A) 100% of Invested Capital and (B) the total Distributions required to
        be paid to the Stockholders in order to pay the Stockholders' 9% Return
        from inception through the date of Listing. Interest on the SILF Note
        will accrue beginning on the date of Listing at a rate deemed fair and
        reasonable by the Independent Directors on the date of Listing. The
        Company shall repay the SILF Note using the entire Net Sales Proceeds of
        each Sale after Listing until the SILF Note is paid in full, with
        interest. If the SILF Note has not been paid in full within five years
        from the date of Listing, then the Advisor, its successors or assigns,
        may elect to convert the balance of the SILF NOTE, including accrued but
        unpaid interest, into Shares at a price per Share equal to the average
        Closing Price of the Shares over the ten trading days immediately
        preceding the date of such election. If the Shares are no longer listed
        at such time as the SILF Note becomes convertible into Shares as
        provided by this paragraph, then the price per Share, for purposes of
        conversion, shall equal the fair market value for the Shares as
        determined by the Board based upon the Appraised Value of the Assets as
        of the date of election. The principal amount of the SILF Note shall be
        referred to as "Subordinated Disposition Fees."

        (f)     DEBT FINANCING FEE. In the event of the origination of any debt
        financing obtained by or for the Company (including any refinancing of
        debt), the Company will pay to the Advisor a debt financing fee equal to
        one percent (1%) of the amount available under such financing.

3.02    EXPENSES.

        (a)     In addition to the compensation paid to the Advisor pursuant to
        Section 3.01 hereof, the Company shall pay directly or reimburse the
        Advisor for all of the expenses paid or incurred by the Advisor in
        connection with the services it provides to the Company pursuant to this
        Agreement, including, but not limited to:

                (i)     Organization and Offering Expenses; provided, however,
                that within 60 days after the end of the month in which an
                Offering terminates, the Advisor shall reimburse the Company for
                any Organization and Offering Expenses reimbursement received by
                the Advisor pursuant to this Section 3.02, to the extent that
                such reimbursement exceeds 2% of the Gross Proceeds (2.5% for
                Offerings conducted prior to the date hereof) exclusive of Gross
                Proceeds from shares sold under the Company's Distribution
                Reinvestment Plan. The Advisor shall be responsible for the
                payment of all Organization and Offering Expenses in excess of
                2% of the Gross Proceeds (2.5% for Offerings conducted prior to
                the date hereof) exclusive of Gross Proceeds from shares sold
                under the Company's Distribution Reinvestment Plan;

                                      -14-
<PAGE>

                (ii)    Acquisition Expenses incurred in connection with the
                selection and acquisition of Assets in an amount equal to up to
                0.5% of the Contract Purchase Price of each Asset;

                (iii)   the actual cost of goods, services and materials used by
                the Company and obtained from Persons not affiliated with the
                Advisor, other than Acquisition Expenses, including brokerage
                fees paid in connection with the purchase and sale of Shares or
                other securities;

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

                (v)     taxes and assessments on income or property and taxes as
                an expense of doing business;

                (vi)    costs associated with insurance required in connection
                with the business of the Company or by the Board;

                (vii)   expenses of managing and operating Assets owned by the
                Company, whether payable to an Affiliate of the Company or a
                non-affiliated Person;

                (viii)  all expenses in connection with payments to the Board
                for attendance at meetings of the Board and Stockholders;

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

                (x)     expenses connected with payments of Distributions in
                cash or otherwise made or caused to be made by the Company to
                the Stockholders;

                (xi)    expenses of organizing, revising, amending, converting,
                modifying, or terminating the Company or the Articles of
                Incorporation;

                (xii)   expenses of any third party transfer agent for the
                Shares and of maintaining communications with Stockholders,
                including the cost of preparation, printing, and mailing annual
                reports and other Stockholder reports, proxy statements and
                other reports required by governmental entities;

                (xiii)  administrative service expenses (including personnel
                costs; provided, however, that no reimbursement shall be made
                for costs of personnel to the extent that such personnel perform
                services in transactions for which the Advisor receives a
                separate fee); and

                (xiv)   audit, accounting and legal fees.

        (b)     Expenses incurred by the Advisor on behalf of the Company and
        payable pursuant to this Section 3.02 shall be reimbursed no less than
        quarterly to the Advisor within 60 days after the end of each quarter.
        The Advisor shall prepare a statement documenting the expenses of the
        Company during each quarter, and shall deliver such statement to the
        Company within 45 days after the end of each quarter.

                                      -15-
<PAGE>

3.03    OTHER SERVICES. Should the Board request that the Advisor or any
director, officer or employee thereof render services for the Company other than
set forth in Section 2.02, such services shall be separately compensated at such
rates and in such amounts as are agreed by the Advisor and the Independent
Directors, subject to the limitations contained in the Articles of
Incorporation, and shall not be deemed to be services pursuant to the terms of
this Agreement.

3.04    REIMBURSEMENT TO THE ADVISOR. The Company shall not reimburse the
Advisor to the extent that Total Operating Expenses (including the Asset
Management Fee), in the four consecutive fiscal quarters then ended (the
"EXPENSE YEAR") exceed (the "EXCESS AMOUNT") the greater of 2% of Average
Invested Assets or 25% of Net Income for such year. Any Excess Amount paid to
the Advisor during a fiscal quarter shall be repaid to the Company.
Reimbursement of all or any portion of the Total Operating Expenses that exceed
the limitation set forth in the preceding sentence may, at the option of the
Advisor, be deferred without interest and may be reimbursed in any subsequent
Expense Year where such limitation would permit such reimbursement if the Total
Operating Expense were incurred during such period. Notwithstanding the
foregoing, if there is an Excess Amount in any Expense Year and the Independent
Directors determine that such excess was justified, based on unusual and
nonrecurring factors which they deem sufficient, the Excess Amount may be
reimbursed to the Advisor. Within 60 days after the end of any fiscal quarter of
the Company for which there is an Excess Amount which the Independent Directors
conclude was justified and reimbursable to the Advisor, there shall be sent to
the Stockholders a written disclosure of such fact, together with an explanation
of the factors the Independent Directors considered in determining that such
Excess Amount was justified. Such determination shall be reflected in the
minutes of the meetings of the Board. The Company will not reimburse the Advisor
or its Affiliates for services for which the Advisor or its Affiliates are
entitled to compensation in the form of a separate fee. All figures used in any
computation pursuant to this Section 3.04 shall be determined in accordance with
generally accepted accounting principles applied on a consistent basis.

                                   ARTICLE IV

                              TERM AND TERMINATION

4.01    TERM; RENEWAL. Subject to Section 4.02 hereof, this Agreement shall
continue in force until the first anniversary of the date hereof. Thereafter,
this Agreement may be renewed for an unlimited number of successive one-year
terms upon mutual consent of the parties. It is the duty of the Board to
evaluate the performance of the Advisor annually before renewing the Agreement,
and each such renewal shall be for a term of no more than one year.

4.02    TERMINATION. This Agreement will automatically terminate upon Listing.
This agreement also may be terminated at the option of either party (i)
immediately upon a Change of Control or (ii) upon 60 days written notice without
cause or penalty (in either case, if termination is by the Company, then such
termination shall be upon the approval of a majority of the Independent
Directors). Notwithstanding the foregoing, the provisions of this Agreement
which provide for payment to the Advisor of expenses, fees or other compensation
following the date of termination (I.E., Sections 3.01(e) and 4.03) shall
continue in full force and effect until all amounts payable thereunder to the
Advisor are paid in full.

4.03    PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

        (a)     After the Termination Date, the Advisor shall not be entitled to
        compensation for further services hereunder except it shall be entitled
        to and receive from the Company within 30 days after the effective date
        of such termination all unpaid reimbursements of expenses, subject to
        the provisions of Section 3.04 hereof, and all contingent liabilities
        related to fees payable to the

                                      -16-
<PAGE>

        Advisor prior to termination of this Agreement, provided that the
        Subordinated Incentive Listing Fee, if any, shall be paid in accordance
        with the provisions of Section 3.01(e). Upon termination, the SILF Note
        shall become immediately due and payable and shall be promptly paid by
        the Company. In the event the Subordinated Incentive Listing Fee is paid
        to the Advisor following Listing, no Performance Fee will be paid to the
        Advisor pursuant to Sections 4.03(b) or (c) below.

        (b)     Upon termination, unless such termination is by the Company
        because of a material breach of this Agreement by the Advisor or occurs
        upon a Change of Control, the Advisor shall be entitled to receive a
        Performance Fee payable in the form of an interest bearing promissory
        note (the "PERFORMANCE FEE NOTE") in a principal amount equal to the
        product of 0.15 times the amount, if any, by which (i) the Company Value
        plus the total Distributions paid to holders of Shares through the
        Termination Date, exceeds (ii) the sum of the aggregate Invested Capital
        plus the Stockholders' 9% Return through the Termination Date. Interest
        on the Performance Fee Note will accrue beginning on the Termination
        Date at a rate deemed fair and reasonable by the Independent Directors.
        The Company shall repay the Performance Fee Note using the entire Net
        Sales Proceeds of each Sale after the Termination Date until the
        Performance Fee Note is paid in full, with interest. If the Performance
        Fee Note has not been paid in full within five years from the
        Termination Date, then the Advisor, its successors or assigns, may elect
        to convert the balance of the Performance Fee Note, including accrued
        but unpaid interest, into Shares at a price per Share equal to the
        average Closing Price of the Shares over the ten trading days
        immediately preceding the date of such election if the Shares are Listed
        at such time. If the Shares are not Listed at such time, the Advisor,
        its successors or assigns, may elect to convert the balance of the
        Performance Fee Note, including accrued but unpaid interest, into Shares
        at a price per Share equal to the fair market value for the Shares as
        determined by the Board based upon the Appraised Value of the Assets on
        the date of election.

        (c)     Notwithstanding the foregoing, if termination occurs upon a
        Change of Control, the Advisor shall be entitled to payment of a
        Performance Fee equal to the product of 0.15 times the amount, if any,
        by which (i) the Company Value plus the total Distributions paid to
        holders of Shares through the Termination Date, exceeds (ii) the sum of
        the aggregate Invested Capital plus the Stockholders' 9% Return. No
        deferral of payment of the Performance Fee may be made under this
        Section 4.03(c).

        (d)     In the event that the Advisor disagrees with the valuation of
        Shares pursuant to Section 4.03(b) where the Shares are not Listed, for
        purposes of determining the number of shares to be issued to the Advisor
        following the Advisor's election to convert the balance of the
        Performance Fee Note owed to the Advisor, then the fair market value of
        such shares shall be determined by an independent appraiser of equity
        value selected by the Advisor and the Company. If the Advisor and the
        Company are unable to agree upon an expert independent appraiser, then
        each of the Company and the Advisor shall name one appraiser and the two
        named appraisers shall promptly agree in good faith to the appointment
        of one such appraiser whose determination shall be final and binding on
        the parties. The cost of such appraisal shall be shared evenly between
        the Company and the Advisor.

        (e)     The Advisor shall promptly upon termination:

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

                                      -17-
<PAGE>

                (ii)    deliver to the Board a full accounting, including a
                statement showing all payments collected by it and a statement
                of all money held by it, covering the period following the date
                of the last accounting furnished to the Board;

                (iii)   deliver to the Board all assets, including the Assets,
                and documents of the Company then in the custody of the Advisor;
                and

                (iv)    cooperate with the Company and take all reasonable
                actions requested by the Company to provide an orderly
                management transition.

                                    ARTICLE V

                                 INDEMNIFICATION

5.01    INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and hold
harmless the Advisor and its Affiliates, including their respective officers,
directors, partners and employees, from all liability, claims, damages or losses
arising in the performance of their duties hereunder, and related expenses,
including reasonable attorneys' fees, to the extent such liability, claims,
damages or losses and related expenses are not fully reimbursed by insurance,
subject to any limitations imposed by the laws of the State of Maryland, the
Articles of Incorporation and the NASAA Guidelines. The foregoing indemnity
shall extend, without limitation, to any claims to the extent relating to any of
the events or outcomes set forth in the Prospectus as possible results, outcomes
or risks associated with the business and investment objectives of the Company.
Notwithstanding the foregoing, the Advisor shall not be entitled to
indemnification or be held harmless pursuant to this Section 5.01 for any
activity which the Advisor shall be required to indemnify or hold harmless the
Company pursuant to Section 5.02. Any indemnification of the Advisor may be made
only out of the net assets of the Company and not from Stockholders.

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

                                   ARTICLE VI

                                  MISCELLANEOUS

6.01    ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the
Advisor to an Affiliate of the Advisor with the approval of a majority of the
Board (including a majority of the Independent Directors). The Advisor may
assign any rights to receive fees or other payments under this Agreement without
obtaining the approval of the Board. This Agreement shall not be assigned by the
Company without the consent of the Advisor, except in the case of an assignment
by the Company to a corporation or other organization which is a successor to
all of the assets, rights and obligations of the Company, in which case such
successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company is bound by this Agreement. This
Agreement shall be binding on successors to the Company resulting from a Change
of Control or sale of all or substantially all the assets of the Company or the
Partnership, and shall likewise be binding upon any successor to the Advisor.

                                      -18-
<PAGE>

6.02    RELATIONSHIP OF ADVISOR AND COMPANY. The Company and the Advisor are not
partners or joint venturers with each other, and nothing in this Agreement shall
be construed to make them such partners or joint venturers or impose any
liability as such on either of them.

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

To the Directors and to the Company:    Behringer Harvard REIT I, Inc.
                                        15601 Dallas Parkway
                                        Suite. 600
                                        Addison, Texas 75001

To the Advisor:                         Behringer Advisors LP
                                        15601 Dallas Parkway
                                        Suite. 600
                                        Addison, Texas 75001

Either party shall, as soon as reasonably practicable, give notice in writing to
the other party of a change in its address for the purposes of this Section
6.03.

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

6.05    SEVERABILITY. The provisions of this Agreement are independent of and
severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part.

6.06    CHOICE OF LAW; VENUE. The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of Texas, and
venue for any action brought with respect to any claims arising out of this
Agreement shall be brought exclusively in Dallas County, Texas.

6.07    ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified or
amended other than by an agreement in writing signed by each of the parties
hereto.

6.08    WAIVER. Neither the failure nor any delay on the part of a party to
exercise any right, remedy, power or privilege under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, remedy, power or privilege preclude any other or further exercise of the
same or of any other right, remedy, power or privilege, nor shall any waiver of
any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and
is signed by the party asserted to have granted such waiver.

                                      -19-
<PAGE>

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

6.10    HEADINGS. The titles and headings of sections and subsections contained
in this Agreement are for convenience only, and they neither form a part of this
Agreement nor are they to be used in the construction or interpretation hereof.

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

6.12    NAME. Behringer Advisors LP and/or one or more of its Affiliates has a
proprietary interest in the names "Harvard" (for the businesses engaged in by
the Company and its Affiliates) and "Behringer" (for all purposes). Accordingly,
and in recognition of this right, if at any time the Company ceases to retain
Behringer Advisors LP or an Affiliate thereof to perform the services of
Advisor, the Company will, promptly after receipt of written request from
Behringer Advisors LP, cease to conduct business under or use the name "Harvard"
or "Behringer" or any diminutive thereof and the Company shall use its best
efforts to change the name of the Company to a name that does not contain the
name "Harvard" or "Behringer" or any other word or words that might, in the sole
discretion of Behringer Advisors LP, be susceptible of indication of some form
of relationship between the Company and Behringer Advisors LP or any Affiliate
thereof. Consistent with the foregoing, it is specifically recognized that
Behringer Advisors LP or one or more of its Affiliates has in the past and may
in the future organize, sponsor or otherwise permit to exist other investment
vehicles (including vehicles for investment in real estate) and financial and
service organizations having "Harvard" or "Behringer" as a part of their name,
all without the need for any consent (and without the right to object thereto)
by the Company or its Board.

6.13    INITIAL INVESTMENT. The Advisor or one of its Affiliates has contributed
$200,000 (the "INITIAL INVESTMENT") in exchange for the initial issuance of
Shares of the Company. The Advisor or its Affiliates may not sell any of the
Shares purchased with the Initial Investment while the Advisor acts in an
advisory capacity to the Company. The restrictions included above shall not
apply to any Shares acquired by the Advisor or its Affiliates other than the
Shares acquired through the Initial Investment. Neither the Advisor nor its
Affiliates shall vote any Shares they now own, or hereafter acquires, in any
vote for the election of Directors or any vote regarding the approval or
termination of any contract with the Advisor or any of its Affiliates.

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

                                      -20-
<PAGE>

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

                                        BEHRINGER HARVARD REIT I, INC.

                                        By:________________________________
                                            Robert M. Behringer, President

                                        BEHRINGER ADVISORS LP

                                        By:  Harvard Property Trust, LLC,
                                               its General Partner

                                             By:________________________________
                                                Gerald J. Reihsen, III
                                                Chief Operating Officer

                                      -21-<PAGE>

                                                                    EXHIBIT 10.3

      SECOND AMENDED AND RESTATED PROPERTY MANAGEMENT AND LEASING AGREEMENT

        This SECOND AMENDED AND RESTATED PROPERTY MANAGEMENT AND LEASING
AGREEMENT (this "Management Agreement") is made and entered into as of the
______ day of__________, 2005, by and among BEHRINGER HARVARD REIT I, INC., a
Maryland corporation ("BH REIT"), BEHRINGER HARVARD OPERATING PARTNERSHIP I LP,
a Texas limited partnership ("BH OP"), and HPT MANAGEMENT SERVICES LP, Texas
limited partnership (the "Manager").

        WHEREAS, BH OP was organized to acquire, own, operate, lease and manage
real estate properties on behalf of BH REIT; and

        WHEREAS, BH OP and BH REIT and Manager previously entered into that
certain Property Management and Leasing Agreement dated February 14, 2003 as
amended and restated by the Amended and Restated Property Management and Leasing
Agreement dated June 2, 2003 (the "Original Management Agreement"); and

        WHEREAS, BH REIT intends to continue to raise money from the sale of its
common stock to be used, net of payment of certain offering costs and expenses,
for investment in the acquisition or construction of income-producing real
estate and other real estate-related investments (including the making or
purchase of mortgage loans), some or all of which are to be acquired and held by
Owner (as hereinafter defined) on behalf of BH REIT; and

        WHEREAS, Owner intends to continue to retain Manager to manage and
coordinate the leasing of certain 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 ion 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

<PAGE>

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.

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     "Management Fees" has the meaning set forth in Section 5.1 hereof.

1.7     "Owner" means BH REIT, BH OP and any joint venture, limited liability
company or other Affiliate of BH REIT or BH OP that owns, in whole or in part,
on behalf of BH REIT, any Properties.

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

1.9     "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.

1.10    "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

                                      -2-
<PAGE>

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 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 that are either expressly required under
        the terms of the lease of such space or that 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 of such Property, BH OP or BH
        REIT. 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,

                                      -3-
<PAGE>

        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.

                (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 copies of future) Articles of Incorporation,
        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 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.

                                      -4-
<PAGE>

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.

                (b)     MONTHLY REPORTS. On or before the 15th day after the end
        of each month 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 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 10 (ten) days of receipt of the notice of disapproval, and Owner
        shall have 10 (ten) 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:

                                      -5-
<PAGE>

                        (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.

                (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

                                      -6-
<PAGE>

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;

                (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 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.

                                      -7-
<PAGE>

                (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 willful misconduct, gross negligence and/or unlawful acts. 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

                                      -8-
<PAGE>

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,
        attorney's fees and expenses, of every kind and nature whatsoever
        (collectively, "Losses"), that may be imposed on or incurred by Manager
        by reason of the willful misconduct, gross negligence and/or unlawful
        acts (such unlawfulness having been adjudicated by a court of proper
        jurisdiction) 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 willful misconduct, gross
        negligence and/or unlawful acts (such unlawfulness having been
        adjudicated by a court of proper jurisdiction) 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 that it may
        do or refrain from doing, except in cases of willful misconduct, gross
        negligence and/or unlawful acts (such unlawfulness having been
        adjudicated by a court of proper jurisdiction).

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.

                                      -9-
<PAGE>

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.

                                   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 FEES. Commencing on the date hereof, Owner shall pay Manager
property management and leasing fees in an amount equal to three percent (3.0%)
of Gross Revenues (the "Management Fees") on a monthly basis from the rental
income received from the Properties over the

                                      -10-
<PAGE>

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     LEASING FEES. In addition to the compensation paid to Manager under
Section 5.1 above, Manager shall be entitled to receive a separate fee for the
Leases of new tenants and renewals of Leases with existing tenants in an amount
not to exceed the fee customarily charged in arm's length transactions by others
rendering similar services in the same geographic area for similar properties as
determined by a survey of brokers and agents in such area.

5.3     AUDIT ADJUSTMENT. If any audit of the records, books or accounts
relating to the Properties discloses an overpayment or underpayment of
Management Fees, Owner or Manager shall promptly pay to the other party the
amount of such overpayment or underpayment, as the case may be. If such audit
discloses an overpayment of Management Fees for any fiscal year of more than the
correct Management Fees for such fiscal year, Manager shall bear the cost of
such audit.

                                   ARTICLE VI

                          INSURANCE AND INDEMNIFICATION

6.1     INSURANCE TO BE CARRIED.

                (a)     Manager shall obtain and keep in full force and effect
        insurance on the Properties against such hazards as Owner and Manager
        shall deem appropriate, but in any event insurance sufficient to comply
        with the Leases and 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,

                                      -11-
<PAGE>

claim, damage, or destruction. Such reports shall be given to Owner promptly,
and any report not so given within 10 (ten) 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 of misconduct of Manager, except to the extent Manager recovers
insurance proceeds with respect to such matter.

                                   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 days prior
to the date last above mentioned or on or before 30 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 thirty (30) days prior to the effective
date of termination, in the event of (and only in the event of) a showing by
Owner of willful misconduct, gross negligence, or deliberate malfeasance by
Manager in the performance of Manager's duties hereunder. In addition, 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.

                                      -12-
<PAGE>

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 all
        Management Fees claimed to be due to Manager and shall cause funds of
        Owner held by Manager relating to the Properties to be paid to Owner or
        its designee.

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 OPERATING PARTNERSHIP I LP
                   c/o Behringer Harvard REIT I, Inc.
                   15601 Dallas Parkway
                   Suite 600
                   Addison, Texas 75001
                   Attention: Chief Legal Officer

                                      -13-
<PAGE>

          Manager: HPT MANAGEMENT SERVICES LP
                   15601 Dallas Parkway
                   Suite 600
                   Addison, Texas 75001
                   Attention: Chief Legal 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 willful misconduct or gross negligence of the Submanager, except that
such indemnity shall not be required to the extent that Owner recovers issuance
proceeds with respect to such matter. Any contract entered into between Manager
and a Submanager pursuant to this Section 8.3 shall be consistent with the
provisions of this Agreement, except to the extent Owner otherwise specifically
agrees in writing. This 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 5.2
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,

                                      -14-
<PAGE>

Manager shall have no obligation to perform such services and Owner shall have
no obligation to Manager for compensation for such services pursuant to Article
V 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. There are no representations, agreements,
arrangements or understandings, oral or written, between Owner and Manager
relating to the management of the Properties that are not fully expressed
herein.

8.11    DISPUTES. If there shall be a dispute between Owner and Manager relating
to this 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,

                                      -15-
<PAGE>

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]

                                      -16-
<PAGE>

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

                                     BEHRINGER HARVARD REIT I, INC.

                                     By: ______________________________________
                                         Gerald J. Reihsen, IIIExecutive Vice
                                         President

                                     BEHRINGER HARVARD OPERATING
                                       PARTNERSHIP I LP

                                     By: Behringer Harvard REIT I, Inc.
                                         General Partner

                                           By: ________________________________
                                               Gerald J. Reihsen, III
                                               Executive Vice President

                                     HPT MANAGEMENT SERVICES LP

                                     By:  _______________________________
                                            Gerald J. Reihsen, III
                                            Executive Vice President

                                      -17-

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