Document:

10-K March 31 2007 Exhibit 10.47

                                                                EXHIBIT 10.47

ADAPTEC, INC.

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement ("Agreement") is effective as of _______________, 20__, by and between Adaptec, Inc., a
Delaware corporation (the "Company" or "Adaptec Delaware"), and _____________ (Name) ("Indemnitee").

WHEREAS, in order to induce Indemnitee to provide, or continue to provide, services to the Company, the Company wishes to
provide for the indemnification of, and advancement of expenses to, Indemnitee to the maximum extent permitted by law;

WHEREAS, Indemnitee does not regard the current protection available as adequate under the present circumstances, and the
Indemnitee and other directors, officers, employees, agents and fiduciaries of the Company may not be willing to continue to serve in
such capacities without additional protection;

WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability insurance for the Company's
directors, officers, employees, agents and fiduciaries, the significant increases in the cost of such insurance and the general reductions
in the coverage of such insurance;

WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting
directors, officers, employees, agents and fiduciaries to expensive litigation risks at the same time as the availability and coverage of
liability insurance has been severely limited; and

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance
expenses on behalf of, Indemnitee to the fullest extent permitted by applicable law so that Indemnitee will serve or continue to serve the
Company free from undue concern that he or she will not be so indemnified.

NOW, THEREFORE, in consideration of the foregoing and Indemnitee's agreement to provide, or continue to provide, services to
the Company, the Company and Indemnitee hereby agree as set forth below.

1.Certain Definitions.
(a) "Change in Control" shall mean, and shall be deemed to have occurred if, on or after the date of this Agreement, (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a trustee
or other fiduciary holding securities under an employee benefit plan of the Company acting in such capacity or a corporation owned
directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the
Company, becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing more than 20% of the total voting power represented by the Company's then outstanding Voting Securities, (ii) during any
period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and
any new director whose election by the Board of Directors or nomination for election by the Company's stockholders was approved by a
vote of at least two thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof, or (iii) the
stockholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or
consolidation which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of the total voting
power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale
or disposition by the Company of (in one transaction or a series of related transactions) all or substantially all of the Company's
assets.

(b) "Claim" shall mean any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism,
or any hearing, inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit,
proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, whether formal or informal, investigative
or other.

(c) References to the "Company" shall include, in addition to Adaptec Delaware, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger to which Adaptec Delaware (or any of its wholly owned subsidiaries)
is a party which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers,
employees, agents or fiduciaries, so that if Indemnitee is or was a director, officer, employee, agent or fiduciary of such constituent
corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee, agent or fiduciary of
another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with
respect to such constituent corporation if its separate existence had continued.

(d) "Expenses" shall mean any and all expenses (including attorneys' fees and all other costs, expenses and obligations incurred in
connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, to be a
witness in or to participate in, any action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation,
whether formal or informal), judgments, fines, penalties and amounts paid in settlement (if such settlement is approved in advance by
the Company, which approval shall not be unreasonably withheld) of any Claim regarding any Indemnifiable Event and any federal,
state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this
Agreement.

(e) "Expense Advance" shall mean an advance payment of Expenses to Indemnitee pursuant to Section 3(a).

(f) "Indemnifiable Event" shall mean any event or occurrence related to the fact that Indemnitee is or was a director, officer,
employee, agent or fiduciary of the Company, or any subsidiary of the Company, or is or was serving at the request of the Company as
a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other enterprise, or by reason
of any action or inaction on the part of Indemnitee while serving in such capacity.

(g) "Independent Legal Counsel" shall mean an attorney or firm of attorneys, selected in accordance with the provisions of Section
2(b) hereof, who shall not have otherwise performed services for the Company or Indemnitee within the last three years (other than with
respect to matters concerning the rights of Indemnitee under this Agreement, or of other indemnitees under similar indemnity
agreements).

(h) References to "other enterprises" shall include employee benefit plans; references to "fines" shall include any excise taxes
assessed on Indemnitee with respect to an employee benefit plan; and references to "serving at the request of the Company" shall
include any service as a director, officer, employee, agent or fiduciary of the Company which imposes duties on, or involves services
by, such director, officer, employee, agent or fiduciary with respect to an employee benefit plan, its participants or its beneficiaries; and
if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner "not opposed to the best interests of
the Company" as referred to in this Agreement.

(i) "Voting Securities" shall mean any securities of the Company that vote generally in the election of directors.

2.Indemnification.
(a) Indemnification of Expenses.  The Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee was
or is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in,
any Claim by reason of (or arising in part out of) any Indemnifiable Event against Expenses, including all interest, assessments and
other charges paid or payable in connection with or in respect of such Expenses.  Such payment of Expenses shall be made by the
Company as soon as practicable but in any event no later than five (5) business days after written demand by Indemnitee therefor is
presented to the Company.

(b) Change in Control.  The Company agrees that if there is a Change in Control of the Company (other than a Change in Control
which has been approved by a majority of the Company's Board of Directors who were directors immediately prior to such Change in
Control), then with respect to all matters thereafter arising concerning the rights of Indemnitee to payments of Expenses and Expense
Advances under this Agreement or any other agreement or under the Company's Certificate of Incorporation or Bylaws as now or
hereafter in effect, Independent Legal Counsel, if desired by Indemnitee, shall be selected by Indemnitee and approved by the
Company (which approval shall not be unreasonably withheld).  Such counsel, among other things, shall render its written opinion to
the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to be indemnified under applicable law
and the Company agrees to abide by such opinion.  The Company agrees to pay the reasonable fees of the Independent Legal
Counsel referred to above and to indemnify fully such counsel against any and all Expenses (including attorneys' fees), claims, liabilities
and damages arising out of or relating to this Agreement or its engagement pursuant hereto.  Notwithstanding any other provision of
this Agreement, the Company shall not be required to pay Expenses of more than one Independent Legal Counsel in connection with
all matters concerning a single Indemnitee, and such Independent Legal Counsel shall be the Independent Legal Counsel for any or all
other Indemnitees unless (i) the Company otherwise determines or (ii) any Indemnitee shall provide a written statement setting forth in
detail a reasonable objection to such Independent Legal Counsel representing other Indemnitees.

(c) Mandatory Payment of Expenses.  Notwithstanding any other provision of this Agreement other than Section 9 hereof, to the
extent that Indemnitee has been successful on the merits or otherwise, including, without limitation, the dismissal of an action without
prejudice, in defense of any Claim regarding any Indemnifiable Event, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

3.Expenses; Indemnification Procedure.
(a) Advancement of Expenses.  The Company shall advance all Expenses incurred by Indemnitee.  The advances to be made
hereunder shall be paid by the Company to Indemnitee as soon as practicable but in any event no later than 30 days after written
demand by Indemnitee therefor to the Company.  Indemnitee hereby agrees to repay to the Company all amounts advanced to
Indemnitee hereunder if it is ultimately determined that Indemnitee is not entitled to indemnification hereunder.  The Company's
obligation to advance Expenses shall terminate with respect to any Claim as to which the Indemnitee shall have entered a plea of guilty
or nolo contendere, or an equivalent plea acknowledging guilt.

(b) Notice/Cooperation by Indemnitee.  Indemnitee shall, as a condition precedent to Indemnitee's right to be indemnified under this
Agreement, give the Company notice in writing as soon as practicable of any Claim made against Indemnitee for which indemnification
will or could be sought under this Agreement; provided however that the failure to so provide notice to the Company shall not relieve the
Company from any liability that it may have to Indemnitee hereunder unless the Company's ability to participate in the defense of such
claim was materially and adversely affected by such failure.  Notice to the Company shall be directed to the Chief Executive Officer of
the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate in
writing to Indemnitee).  In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require
and as shall be within Indemnitee's power, to the extent that doing so is consistent with the exercise of the Indemnitee's rights under the
federal and state Constitutions.  Company shall provide Indemnitee with such information and cooperation as Indemnitee may
reasonably require, to the extent that doing so is consistent with the Company's obligation to cooperate with regulatory or law
enforcement agencies.

(c) No Presumptions; Burden of Proof.  For purposes of this Agreement, the termination of any Claim by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined
that indemnification is not permitted by applicable law.

(d) Notice to Insurers.  If, at the time of the receipt by the Company of a notice of a Claim pursuant to Section 3(b) hereof, the
Company has liability insurance in effect which may cover such Claim, the Company shall give prompt notice of the commencement of
such Claim to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Claim
in accordance with the terms of such policies.  The Company shall keep Indemnitee reasonably informed as to the status of all relevant
insurance matters.

(e) Selection of Counsel. In the event the Company shall be obligated hereunder to pay the Expenses of any Claim the Company, if
appropriate, shall be entitled to assume the defense of such Claim with counsel approved by Indemnitee (not to be unreasonably
withheld) upon the delivery to Indemnitee of written notice of the Company's election so to do.  After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same Claim; provided that, (i) Indemnitee
shall have the right to employ Indemnitee's separate counsel in any such Claim at Indemnitee's Expense and (ii) if (A) the employment
of separate counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded
that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company
shall not continue to retain such counsel to defend such Claim, then the fees and Expenses of Indemnitee's separate counsel shall be
at the Expense of the Company.

4. Additional Indemnification Rights; Nonexclusivity.
(a) Scope.  The Company hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that
such indemnification is not specifically authorized by the other provisions of this Agreement, the Company's Certificate of Incorporation,
the Company's Bylaws (as now or hereafter in effect) or by statute.  In the event of any change after the date of this Agreement in any
applicable law, statute or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an
officer, employee, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits afforded by such change.  In the event of any change in any applicable law, statute or rule which narrows the right of a
Delaware corporation to indemnify a member of its board of directors or an officer, employee, agent or fiduciary, such change, to the
extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the
parties' rights and obligations hereunder except as set forth in Section 9(a) hereof.

(b) Nonexclusivity.  The indemnification provided by this Agreement shall be in addition to any rights to which Indemnitee may be
entitled under the Company's Certificate of Incorporation, its Bylaws (as now hereafter in effect), any other agreement, any vote of
stockholders or disinterested directors, the General Corporation Law of the State of Delaware, or otherwise.  The indemnification
provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified
capacity even though Indemnitee may have ceased to serve in such capacity.

5.No Duplication of Payments.  The Company shall not be liable under this Agreement to make any payment in
connection with any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any
insurance policy, provision of the Company's Certificate of Incorporation, Bylaw (as now or hereafter in effect) or otherwise) of the
amounts otherwise indemnifiable hereunder.

6. Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company
for some or a portion of Expenses incurred in connection with any Claim, but not, however, for all of the total amount thereof, the
Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

7. No Imputation.  The knowledge or actions, or failure to act, of any director, officer, agent or employee of the Company or the
Company itself shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

8. Liability Insurance.  For the duration of Indemnitee's service as a director or officer or other agent of the Company, and
thereafter for so long as Indemnitee shall be subject to any pending or possible Claim by reason of any Indemnifiable Event, the
Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the
cost thereof) to cause to be maintained in effect policies of liability insurance providing coverage for directors and officers of the
Company that are at least substantially comparable in scope and amount to that provided by the Company's current policies of
directors' and officers' liability insurance.  To the extent the Company maintains liability insurance applicable to directors, officers,
employees, agents or fiduciaries, Indemnitee shall be covered by such policies in such a manner as to provide Indemnitee the same
rights and benefits as are provided to the most favorably insured of the Company's directors, if Indemnitee is a director; or of the
Company's officers, if Indemnitee is not a director of the Company but is an officer; or of the Company's key employees, agents or
fiduciaries, if Indemnitee is not an officer or director but is a key employee, agent or fiduciary.

9. Exceptions.  Notwithstanding any other provision of this Agreement, the Company shall not be obligated pursuant to the
terms of this Agreement:
(a) Excluded Action or Omissions.  To indemnify Indemnitee for acts, omissions or transactions if a final decision by a court having
jurisdiction in the matter shall determine that such indemnification is prohibited by applicable law.

(b) Claims Initiated by Indemnitee.  To indemnify or advance Expenses to Indemnitee with respect to Claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except (i) with respect to actions or proceedings brought to establish or enforce a
right to indemnification under this Agreement or any other agreement or insurance policy or under the Company's Certificate of
Incorporation or Bylaws now or hereafter in effect relating to Claims for Indemnifiable Events, (ii) in specific cases if the Board of
Directors has approved the initiation or bringing of such Claim, or (iii) as otherwise required under Section 145 of the Delaware General
Corporation Law, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance Expense
payment or insurance recovery, as the case may be.

(c) Lack of Good Faith.  To indemnify Indemnitee for any Expenses incurred by the Indemnitee with respect to any proceeding
instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material
assertions made by the Indemnitee in such proceeding was not made in good faith or was frivolous.

(d) Claims Under Section 16(b).  To indemnify Indemnitee for expenses and the payment of profits arising from the purchase and
sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar
successor statute; provided that the Company shall advance expenses in connection with Indemnitee's defense of a claim under
Section 16(b), which advances shall be repaid to the Company if it is ultimately determined that Indemnitee is not entitled to
indemnification of such expenses.

10. Period of Limitations.  No legal action shall be brought and no cause of action shall be asserted by or in the right of the
Company against Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal representatives after the expiration of
two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and
deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that if any shorter
period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

11. Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall constitute an
original.

12. Binding Effect; Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors, assigns (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), spouses, heirs and personal and
legal representatives.  The Company shall require and cause any successor (whether direct or indirect, and whether by purchase,
merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business or assets of the Company, by written
agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place.  This
Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a director, officer, employee, agent or
fiduciary (as applicable) of the Company or of any other enterprise at the Company's request.

13. Attorneys' Fees.  In the event that any action is instituted by Indemnitee under this Agreement or under any liability
insurance policies maintained by the Company to enforce or interpret any of the terms hereof or thereof, Indemnitee shall be entitled to
be paid all Expenses incurred by Indemnitee with respect to such action, regardless of whether Indemnitee is ultimately successful in
such action, and shall be entitled to the advancement of Expenses with respect to such action, unless as a part of such action a court of
competent jurisdiction over such action determines that each of the material assertions made by Indemnitee as a basis for such action
was not made in good faith or was frivolous.  In the event of an action instituted by or in the name of the Company under this
Agreement to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee in defense of such action (including costs and Expenses incurred with respect to Indemnitee's counterclaims and cross-
claims made in such action), and shall be entitled to the advancement of Expenses with respect to such action.

14. Notice.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be
deemed duly given (i) if delivered by hand and signed for by the party addressed, on the date of such delivery, or (ii) if mailed by
domestic certified or registered mail with postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice.

15. Consent to Jurisdiction.  The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of
the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and
agree that any action instituted under this Agreement shall be commenced, prosecuted and continued only in the Court of Chancery of
the State of Delaware in and for New Castle County, which shall be the exclusive and only proper forum for adjudicating such a
claim.

16. Severability.  The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including
any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or
otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law.  Furthermore, to
the fullest extent possible, the provisions of this Agreement (including, without limitations, each portion of this Agreement containing any
provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

17. Choice of Law.  This Agreement shall be governed by and its provisions construed and enforced in accordance with the
laws of the State of Delaware as applied to contracts between Delaware residents entered into and to be performed entirely within the
State of Delaware.

18. Subrogation.  In the event of payment under this Agreement, the Company shall be subrogated to the extent of such
payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be
necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

19. Amendment and Termination.  Due to the uncertain application of any statutes of limitations that may govern any Claim,
this Agreement shall be of indefinite duration.  No amendment, modification, termination or cancellation of this Agreement shall be
effective unless it is in writing signed by both the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed
to be or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing
waiver.

20. Integration and Entire Agreement.  This Agreement sets forth the entire understanding between the parties hereto and
supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the
subject matter hereof between the parties hereto.  If the Company and Indemnitee have previously entered into an Indemnification
Agreement providing for indemnification of Indemnitee by the Company, the parties' entry into this Indemnification Agreement shall be
deemed to amend and restate such Indemnification Agreement to read in its entirety as, and to be superseded by, this Indemnification
Agreement.

21. No Construction as Employment Agreement.  Nothing contained in this Agreement shall be construed as giving Indemnitee
any right to be retained in the employ of the Company or any of its subsidiaries or affiliated entities.

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

ADAPTEC, INC.

By:

_____________________

Title:

_____________________

Address:691 S. Milpitas Boulevard

Milpitas, CA  95035

AGREED TO AND ACCEPTED

INDEMNITEE:

_____________________

(signature)

FIELD (Name)

_____________________

(name of Indemnitee)

_____________________

_____________________

(address)<PAGE>
                                                                    Exhibit 10.2

                               ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (this "Agreement"), dated as of, ____________ 2007,
is entered into between Shopoff Properties Trust, Inc., a Maryland corporation
(the "Company"), Shopoff Partners, L.P., a Delaware limited partnership (the
"Operating Partnership"), and Shopoff Advisors, L.P., a Delaware limited
partnership (the "Advisor").

                              W I T N E S S E T H:

     WHEREAS, the Company has filed a registration statement with the U. S.
Securities and Exchange Commission relating to its proposed offering of shares
of its common stock, par value $.01 per share ("Common Stock"), to the public
(the "Offering");

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

     WHEREAS, the Company and the Operating Partnership desire to avail
themselves of the experience, sources of information, advice and assistance of,
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, the parties hereto agree as follows:

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

     Acquisition Expenses means any and all expenses incurred by the Company,
the Advisor, the Operating Partnership, or any Affiliate thereof in connection
with the sourcing, selection, evaluation and acquisition of, and investment in,
any Real Estate Asset, whether or not acquired or made, including but not
limited to legal fees and expenses, travel and communications expenses, cost of
appraisals, nonrefundable option payments on Real Estate Assets not acquired,
accounting fees and expenses, title insurance, and other closing and
miscellaneous expenses related to the selection and acquisition of Real Estate
Assets.

     Acquisition Fee means any and all fees and commissions, exclusive of
Acquisition Expenses, paid by any Person to any other Person (including any fees
or commissions paid by or to any Affiliate of the Company or the Advisor) in
connection with the making or investing in mortgage loans or the purchase,
development or construction of any property or other Real Estate Asset,
including, without limitation, real estate commissions, selection fees.

     Advisor means Shopoff Advisors, L.P., a Delaware limited partnership, any
successor advisor to the Company, or any person or entity to which Shopoff
Advisors, L.P. or any successor advisor subcontracts substantially all of its
functions.

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                               TABLE OF CONTENTS

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1.   DEFINITIONS............................................................................................    1

2.   APPOINTMENT............................................................................................    9

3.   AUTHORITY OF THE ADVISOR...............................................................................    9

     (a)  General...........................................................................................    9

     (b)  Powers of the Advisor.............................................................................    9

     (c)  Approval by Directors.............................................................................    9

     (d)  Modification or Revocation of Authority of Advisor................................................    9

4.   DUTIES AND AUTHORITY OF THE ADVISOR....................................................................   10

     (a)  Organizational and Offering Services..............................................................   10

     (b)  Real Estate Asset Acquisition and Disposition, Asset Management and Operational Services..........   10

5.   BANK ACCOUNTS..........................................................................................   15

6.   RECORDS; ACCESS........................................................................................   15

7.   LIMITATIONS ON ACTIVITIES..............................................................................   15

8.   RELATIONSHIP WITH DIRECTORS............................................................................   15

9.   FEES...................................................................................................   16

     (a)  Acquisition and Advisory Fees.....................................................................   16

     (b)  Asset Management Fee..............................................................................   16

     (c)  Disposition Fee...................................................................................   16

     (d)  Subordinated Participation in Net Sale Proceeds...................................................   16

     (e)  Subordinated Incentive Fee Due Upon Listing.......................................................   17

     (f)  Debt Financing Fee................................................................................   17

     (g)  Subordinated Performance Fee Due Upon Termination.................................................   17

     (h)  Changes to Fee Structure..........................................................................   17

10.  EXPENSES...............................................................................................   17

     (a)  Reimbursable Expenses.............................................................................   17

     (b)  Other Services....................................................................................   19

     (c)  Timing of and Limitations on Reimbursements.......................................................   19

11.  OTHER ACTIVITIES OF THE ADVISOR........................................................................   20

     (a)  General...........................................................................................   20
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                                      -i-
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                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
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<S>                                                                                                           <C>

12.  RELATIONSHIP OF ADVISOR AND COMPANY....................................................................   20

13.  REPRESENTATIONS AND WARRANTIES.........................................................................   20

     (a)  Of the Company....................................................................................   21

     (b)  Of the Advisor....................................................................................   21

14.  TERM; TERMINATION OF AGREEMENT.........................................................................   22

15.  TERMINATION............................................................................................   22

     (a)  Termination by Either Party.......................................................................   22

     (b)  Termination by the Advisor........................................................................   22

16.  PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.....................................................   22

17.  ASSIGNMENT TO AN AFFILIATE.............................................................................   23

18.  INDEMNIFICATION BY THE COMPANY.........................................................................   23

19.  INDEMNIFICATION BY ADVISOR.............................................................................   24

20.  ADVISOR'S LIABILITY....................................................................................   24

21.  NOTICES................................................................................................   24

22.  MODIFICATION...........................................................................................   25

23.  SEVERABILITY...........................................................................................   25

24.  CONSTRUCTION...........................................................................................   25

25.  ENTIRE AGREEMENT.......................................................................................   25

26.  INDULGENCES, NOT WAIVERS...............................................................................   25

27.  GENDER.................................................................................................   26

28.  TITLES NOT TO AFFECT INTERPRETATION....................................................................   26

29.  EXECUTION IN COUNTERPARTS..............................................................................   26
</TABLE>

                                      -ii-
<PAGE>

     Affiliate or Affiliated means, (A) any Person directly or indirectly
owning, controlling, or holding, with power to vote, ten percent or more of the
outstanding voting securities of such other Person, (B) any ten percent or more
of whose outstanding voting securities are directly or indirectly owned,
controlled, or held, with the power to vote, by such other Person, (C) any
Person, directly or indirectly, controlling, controlled by, or under common
control with such other Person, (D) any executive officer, director, trustee,
general partner or manager of such other person, or (E) any legal entity for
which such Person acts as an executive officer, director, trustee, general
partner or manager.

     Appraised Value means value according to an appraisal made by an
Independent Appraiser.

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

     Asset Management Fee means the fee paid to the Advisor for directing or
performing the day-to-day business affairs of the Company in the amount
established pursuant to Section 9(b).

     Board of Directors or Board means the individuals holding such office, as
of any particular time, under the Charter of the Company, whether they be the
Directors named therein or additional or successor Directors.

     Broker-Dealer means Shopoff Securities, Inc., an Affiliate of the Advisor,
or such other Person or entity selected by the Board to act as the broker-dealer
for the Offering. Shopoff Securities, Inc. is a member of the National
Association of Securities Dealers.

     Bylaws means the Bylaws of the Company, as the same may be amended from
time to time.

     Charter means the charter of the Company, including the Articles of
Incorporation and all Articles of Amendment, Articles Supplementary and other
modifications thereto as filed with the SDAT.

     Code means the 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.

     Common Stock means the Common Stock as defined in the Recitals to this
Agreement.

     Company means Shopoff Properties Trust, Inc., a corporation organized under
the laws of the State of Maryland.

                                       2
<PAGE>

     Competitive Real Estate Commission means a real estate or brokerage
commission paid for the purchase or sale of a Real Estate Asset that is
reasonable, customary and competitive in light of the size, type and location of
the Real Estate Asset.

     Construction Fee means 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 rehabilitation for a Real
Estate Asset.

     Contract Price means the amount actually paid for a Real Estate Asset or
allocated to the purchase, development, construction or improvement of a Real
Estate Asset, exclusive of Acquisition Fees and Acquisition Expenses.

     Development Fee means a fee for the packaging of a Real Estate Asset,
including negotiating and approving plans, and undertaking to assist in
obtaining zoning and necessary variances and financing for the specific Real
Estate Asset, either initially or at a later date.

     Director means an individual who is a member of the Board of Directors.

     Disposition Fee means the Disposition Fee as defined in Section 9(c) of
this Agreement.

     Dividends means any dividends or other distributions of money or other
property paid by the Company to the Stockholders, including dividends that may
constitute a return of capital for federal income tax purposes.

     Excess Expense Guidelines means the Excess Expense Guidelines as defined in
Section 10(c)(iii) of this Agreement.

     Excess Market Value means the amount by which (i) the Market Value, plus
the total of all Dividends paid to Stockholders from the Company's inception
until the date that Market Value is determined, exceeds (ii) an amount equal to
100% of the Invested Capital, plus a 10% cumulative, non-compounded per annum
return on the Invested Capital from the date of investment through the date
Market Value is determined.

     Excess Net Appraised Value means the amount by which the Net Appraised
Value exceeds the sum of 100% of Invested Capital, plus an amount equal to a 10%
cumulative, non-compounded per annum return on Invested Capital, calculated on a
weighted average daily basis, less all prior Dividends.

     Expense Year means the Expense Year as defined in Section 10(c)(iii)
hereof.

     GAAP means generally accepted accounting principles consistently applied as
used in the United States of America.

     Gross Proceeds means the aggregate purchase price of all Common Stock sold
for the account of the Company.

     Independent Appraiser means a person or entity, with no material current or
prior business or personal relationship with the Advisor or the Directors, who
is engaged to a

                                       3
<PAGE>

substantial extent in the business of rendering opinions regarding the value of
assets of the type intended to be acquired by the Company through the Operating
Partnership, and who is a qualified appraiser of real estate 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.

     Independent Director means a Director of the Company who is not, and within
the last two years has not been, directly or indirectly associated with the
Sponsor or Advisor by virtue of (i) ownership of an interest in the Sponsor,
Advisor or its Affiliates, (ii) employment by the Sponsor, Advisor or any of
their Affiliates, (iii) service as an officer or director of the Sponsor,
Advisor or any of their Affiliates, (iv) performance of services, other than as
a Director, for the Company, (v) service as a director or trustee of more than
three real estate investment trusts organized by the Sponsor or advised by the
Advisor, or (vi) maintenance of a material business or professional relationship
with the Sponsor, Advisor or any of their Affiliates. A business or professional
relationship is considered material if the gross revenue derived by the Director
from the Advisor and Affiliates exceeds five percent of either the Director's
annual gross revenue derived from all sources during either of the last two
years, or the Director's net worth on a fair market value basis. An indirect
relationship shall include circumstances in which a Director's spouse, parents,
children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law or
brothers- or sisters-in-law are or have been associated with the Sponsor,
Advisor, any of their Affiliates or the Company.

     Invested Capital means, with respect to the Stockholders, as of any
relevant date, an amount equal to the excess of (i) the aggregate amount of cash
contributed or deemed contributed by the Company to the Operating Partnership
from the gross proceeds of the issuance by the Company of Common Stock to the
Stockholders, over (ii) the cumulative Dividends made by the Operating
Partnership to the Company as of such date and distributed to the Stockholders.

     Joint Venture means any joint venture, limited liability company or other
Affiliate of the Company (other than the Operating Partnership and the
Subsidiary Limited Liability Companies).

     Listed means approved for trading on the NYSE, AMEX, or the Nasdaq Stock
Market, any successor to such entities or on any national securities exchange
that has listing standards that the U. S. Securities and Exchange Commission
determines by rule are substantially similar to the listing standards of the
NYSE, AMEX or the Nasdaq Stock Market. The term "Listing" shall have the
correlative meaning.

     Market Value means the market value of the outstanding stock of the
Company, measured by taking the average closing price or average of the bid and
asked price, as the case may be, during the consecutive 30-day period commencing
twelve (12) months following Listing and ending eighteen (18) months following
Listing during which the average closing price or average of the bid and asked
price of the stock is the highest.

     Nasdaq means The Nasdaq Stock Market.

     NASAA means the North American Securities Administrators Association, Inc.

                                       4
<PAGE>

     NASAA REIT Guidelines means the Statement of Policy Regarding Real Estate
Investment Trusts published by the North American Securities Administrators
Association.

     Net Appraised Value means the Appraised Value of the Company's assets at
the Termination Date, less amounts of all indebtedness secured by the Real
Estate Assets.

     Net Income means for any period, the total revenues applicable to such
period, less the total expenses applicable to such period excluding additions to
reserves for depreciation, bad debts or other similar non-cash reserves;
provided, however, Net Income for purposes of calculating total allowable
Operating Expenses shall exclude the gain from the sale of the Company's assets.

     Net Sale Proceeds means in the case of a transaction described in clause
(A) of the definition of Sale, the net proceeds of any such transaction less the
amount of all real estate commissions and closing costs paid by the Operating
Partnership. In the case of a transaction described in clause (B) of such
definition, Net Sale Proceeds means the net proceeds of any such transaction
less the amount of any legal and other selling expenses incurred by the
Operating Partnership in connection with such transaction. In the case of a
transaction described in clause (C) of such definition, Net Sale Proceeds means
the net proceeds of any such transaction actually distributed to the Operating
Partnership from the Joint Venture less any expenses incurred by the Operating
Partnership in connection with such transaction. In the case of a transaction or
series of transactions described in clause (D) of the definition of Sale, Net
Sale Proceeds means the net proceeds of any such transaction less the amount of
all commissions and closing costs paid by the Operating Partnership. In the case
of a transaction described in clause (E) of such definition, Net Sale Proceeds
means the net proceeds of any such transaction less the amount of all selling
costs and other expenses incurred by the Operating Partnership in connection
with such transaction. Net Sale Proceeds shall also include, in the case of any
lease of a Real Estate Asset consisting of a building only, any amounts from
received tenants, borrowers or lessees that the Company determines, in its
discretion, to be economically equivalent to the proceeds of a Sale. Net Sale
Proceeds shall not include any amounts used to repay outstanding indebtedness
secured by the asset disposed of in the sale.

     NYSE means the New York Stock Exchange.

     Market Value means, upon Listing, the market value of our outstanding
Common Stock measured by taking the average closing price or average of bid and
asked price, as the case may be, over a period of 30 days during which the
Common Stock is traded, with such period beginning at least 12 months after the
date of Listing.

     Offering means the Offering defined in the Recitals to this Agreement.

     Operating Expenses means all direct and indirect costs and expenses
incurred by the Company, the Operating Partnership, the Advisor, or any of their
respective Affiliates, as determined under GAAP, which in any way are related to
the operation of the Company or to Company business, including advisory fees,
but excluding (i) the expenses of raising capital such as Organizational and
Offering Expenses, legal, audit, accounting, underwriting, brokerage,

                                       5
<PAGE>

listing, registration, and other fees, printing and other such expenses and
taxes incurred in connection with the issuance, distribution, transfer,
registration and Listing of the Common Stock, (ii) interest payments, (iii)
taxes, (iv) non-cash expenditures such as depreciation, amortization and bad
debt reserves, (v) Acquisition Fees and Acquisition Expenses, (vi) real estate
commissions on the Sale of property, and other expenses connected with the
acquisition and ownership of real estate interests, mortgage loans, or other
property (such as the costs of foreclosure, insurance premiums, legal services,
maintenance, repair, and improvement of property) and (vii) any incentive fees
which may be paid in compliance with the NASAA REIT Guidelines. The definition
of "Operating Expenses" set forth above is intended to encompass only those
expenses which are required to be treated as Operating Expenses under the NASAA
REIT guidelines. As a result, and notwithstanding the definition set forth
above, any expense of the Company which is not an Operating Expense under the
NASAA REIT Guidelines shall not be treated as an Operating Expense for purposes
hereof.

     Operating Partnership means Shopoff Partners, L.P. , or any successor
thereof, which is the partnership through which the Company may own Real Estate
Assets. References herein to the Company's assets refers to the Real Estate
Assets held by the Operating Partnership.

     Operating Partnership Agreement means the limited partnership agreement of
the Operating Partnership, as amended and restated from time to time.

     Organizational and Offering Expenses means any and all costs and expenses,
other than selling commissions and fees, incurred by the Company, the Advisor or
any Affiliate of either in connection with and in preparing the Company for
registration of and subsequently offering and distributing its Common Stock to
the public, which may include but are not limited to legal, accounting and
escrow fees, expenses for printing, engraving, amending, supplementing and
mailing, distribution costs, compensation to employees while engaged in
registering, telephone costs, all advertising and marketing expenses, charges of
transfer agents, registrars, trustees, escrow holders, depositories, experts,
and fees, expenses and taxes related to the filing, registration and
qualification of the sale of the securities under federal and state laws,
including accountants' and attorneys' fees and other accountable offering
expenses. Organization and Offering Expenses may include, but are not limited
to: (i) amounts to reimburse the Advisor for all marketing related costs and
expenses such as compensation to and direct expenses of the Advisor's employees
or employees of the Advisor's Affiliates in connection with registering and
marketing the Common Stock; (ii) direct expenses of the employees of the
Broker-Dealer while preparing for the offering and marketing of the Common
Stock; (iii) travel and entertainment expenses related to the offering and
marketing of the Common Stock; (iv) facilities and technology costs and other
costs and expenses associated with the offering and to facilitate the marketing
of the Common Stock including web site design and management.

     Person means any natural person, partnership, corporation, association,
trust, limited liability company, or other legal entity.

     Prospectus means any document, notice, or other communication satisfying
the standards set forth in Section 10 of the Securities Act, and contained in a
currently effective registration statement filed by the Company with, and
declared effective by, the U. S. Securities and

                                       6
<PAGE>

Exchange Commission, or if no registration statement is currently effective,
then the Prospectus contained in the most recently effective registration
statement.

     Real Estate Assets means unimproved and improved real property and Real
Estate Related Investments or any direct and/or indirect interest therein
(including, without limitation, fee or leasehold interests, options, leases,
partnership and joint venture interests, equity and debt securities of entities
that own real property, first or second mortgages on real property, mezzanine
loans directly or indirectly secured by real property, and other contractual
rights in real estate).

     Real Estate Related Investments means mortgage loans secured by, or
preferred equity investments in entities that own, real property (including
first or second mortgages on real property and mezzanine loans directly or
indirectly secured by real property).

     REIT means a corporation, trust or association which is engaged in
investing in equity interests in real estate (including fee ownership and
leasehold interests and interests in limited liability companies, limited
liability companies, partnerships and joint ventures holding real estate) or in
loans secured by mortgages on real estate or both and that qualifies as a real
estate investment trust under the REIT Provisions of the Code.

     REIT Provisions of the Code means Sections 856 through 860 of the Code and
any successor or other provisions of the Code relating to real estate investment
trusts (including provisions as to the attribution of ownership of beneficial
interests therein) and the regulations promulgated thereunder.

     Sale or Sales means any transaction or series of transactions whereby: (A)
the Operating Partnership sells, grants, transfers, conveys or relinquishes its
ownership of any Real Estate Asset or portion thereof, including the lease of
any Real Estate Asset consisting of the building only, and including any event
with respect to any Real Estate Asset which gives rise to a significant amount
of insurance proceeds (to the extent such insurance proceeds are not used to
repair the damage for which the insurance proceeds were paid) or condemnation
awards; (B) the Operating Partnership sells, grants, transfers, conveys or
relinquishes its ownership of all or substantially all of the interest of the
Operating Partnership in any Joint Venture in which it is a co-venturer or
partner; (C) any Joint Venture in which the Operating Partnership is a
co-venturer or partner sells, grants, transfers, conveys or relinquishes its
ownership of any Real Estate Asset or portion thereof, including any event with
respect to any Real Estate Asset which gives rise to insurance claims or
condemnation awards; (D) the Operating Partnership sells or otherwise disposes
of its interests in the Subsidiary Limited Liability Companies; or (E) the
Operating Partnership sells or otherwise disposes of or distributes all of its
assets in liquidation of the Operating Partnership.

     SDAT means the State Department of Assessments and Taxation of the State of
Maryland.

     Securities Act means the Securities Act of 1933, as amended.

          (a) Sponsor means any Person directly or indirectly instrumental in
organizing, wholly or in part, the Company or any Person who will control,
manage or

                                       7
<PAGE>

participate in the management of the Company, and any Affiliate of such Person.
Not included is any Person whose only relationship with the Company is as that
of an independent property manager of the Company's assets and whose only
compensation is as such. Sponsor does not include wholly independent third
parties such as attorneys, accountants and underwriters whose only compensation
is for professional services.

     Stockholders means the registered holders of the Company's Common Stock.

     Subordinated Incentive Fee Due Upon Listing means the fee payable to the
Advisor under certain circumstances if the Common Stock is listed on a national
securities exchange, in an amount equal to 50% of the Excess Market Value if
Stockholders have received cumulative Dividends equal to 100% of the Invested
Capital plus a 10% cumulative, non-compounded per annum return on the Invested
Capital, calculated on an aggregate weighted average daily basis. The Company
shall have the option to pay such fee in the form of cash, Common Stock, a
promissory note or any combination of the foregoing. The form of payment shall
be as approved by the Board of Directors. In the event the Advisor Subordinated
Incentive Fee Due Upon Listing is paid to the Advisor, thereafter, the Advisor
will not be entitled to receive any payments of Subordinated Performance Fee
Upon Termination or Subordinated Participation in Net Sale Proceeds.

     Subordinated Performance Fee Due Upon Termination means, upon termination
of this Agreement, a performance fee equal to 50% of the Excess Market Value or
50% of the Excess Net Appraised Value, whichever is greater, if Stockholders
have received cumulative Dividends equal to 100% of the Invested Capital plus a
10% cumulative, non-compounded per annum return on the Invested Capital,
calculated on an aggregate weighted average daily basis.

     Subordinated Participation in Net Sale Proceeds means a fee equal to 50% of
the balance of Net Sale Proceeds, if any, remaining after Stockholders have
received cumulative Dividends equal to 100% of the Invested Capital, plus an
amount equal to a 10% cumulative, non-compounded per annum return on the
Invested Capital, calculated on an aggregate weighted average daily basis.

     Subsidiary Limited Liability Companies means the limited liability
companies formed from time to time by the Operating Partnership for the purpose
of holding title to one or more Real Estate Assets.

     Termination Date means the date of termination of this Agreement.

     2.   Appointment. The Company, through the powers vested in the Board of
Directors, including a majority of all Independent Directors, hereby appoints
the Advisor to serve as its advisor and asset manager on the terms and
conditions set forth in this Agreement, and the Advisor hereby accepts such
appointment.

     3.   Authority of the Advisor.

          (a)  General. All rights and powers to manage and control the
day-to-day business and affairs of the Company shall be vested in the Advisor.
The Advisor shall have the power to delegate all or any part of its rights and
powers to manage and control the business and

                                       8
<PAGE>

affairs of the Company to such officers, employees, Affiliates, agents and
representatives of the Advisor or the Company as it may from time to time deem
appropriate. Any authority delegated by the Advisor to any other Person shall be
subject to the limitations on the rights and powers of the Advisor specifically
set forth in this Agreement and the Charter.

          (b)  Powers of the Advisor. Subject to the express limitations set
forth in this Agreement and subject to the supervision of the Board, the power
to direct the management, operation and policies of the Company shall be vested
in the Advisor, which shall have the power by itself and shall be authorized and
empowered on behalf and in the name of the Company to carry out any and all of
the objectives and purposes of the Company and to perform all acts and enter
into and perform all contracts and other undertakings that it may in its sole
discretion deem necessary, advisable or incidental thereto to perform its
obligations under this Agreement.

          (c)  Approval by Directors. Notwithstanding the foregoing, any
investment in Real Estate Assets, including any acquisition of a Real Estate
Asset by the Company or any investment by the Company in a Joint Venture,
limited liability company, limited partnership or similar entity owning real
properties, will require the prior approval of the Board of Directors and the
Independent Directors. The Advisor will deliver to the Board of Directors all
documents required by it to properly evaluate the proposed investment.

          (d)  Modification or Revocation of Authority of Advisor. The Board
may, at any time upon the giving of notice to the Advisor, modify or revoke the
authority or approvals set forth in Sections 3 and 4, 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. For such previously committed investment transactions, the Advisor
shall have the full rights and authorizations under Section 3 and 4 as are
necessary to complete the previously committed investment transactions.

     4.   Duties and Authority of the Advisor.

          (a)  Organizational and Offering Services. The Advisor shall manage
and supervise:

               (i) development of the Offering, including the determination of
the specific terms of the Common Stock to be offered by the Company;

               (ii) the organization of the Company, preparation of all Offering
and related documents, and obtaining of all required regulatory approvals of
such documents;

               (iii) coordination of the due diligence process of the
Broker-Dealer and its review of the Prospectus and other Offering and Company
documents;

               (iv) preparation and approval of all marketing materials
contemplated to be used by the Broker-Dealer or others in the Offering;

                                       9
<PAGE>

               (v) along with the Broker-Dealer, negotiation and coordination
with the escrow agent for the receipt, collection, processing and acceptance of
subscription agreements, and other administrative support functions;

               (vi) creation and implementation of various technology and
electronic communications related to the Offering; and

               (vii) all other services related to organization of the Company
or the Offering, whether performed and incurred by the Advisor or its
Affiliates.

          (b)  Real Estate Asset Acquisition and Disposition, Asset Management
and Operational Services. The Advisor undertakes to use commercially reasonable
efforts to:

               (i) (1) present to the Company potential investment opportunities
to provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted in
the Charter, and (2) to manage, administer, promote, maintain, and improve, when
applicable, the Real Estate Assets on an overall portfolio basis in a diligent
manner. The services of the Advisor are to be of scope and quality not less than
those generally performed by professional asset managers of other similar
property portfolios. The Advisor shall make available the full benefit of the
judgment, experience and advice of the members of the Advisor's organization and
staff with respect to the duties it will perform under this Agreement. The
Advisor shall also obtain the services of developers, contractors, property
managers and leasing agents, which may include the Advisor or its Affiliates, to
manage, promote, and lease the Real Estate Assets. To facilitate the Advisor's
performance of these undertakings, but subject to the restrictions included in
Sections 3 and 7 and to the continuing and exclusive authority of the Board over
the management of the Company and the Operating Partnership, the Company hereby
delegates to the Advisor the authority to, and the Advisor hereby agrees to,
either directly or by engaging an Affiliate of the Advisor or an unrelated third
party;

               (ii) manage, and perform and supervise the various administrative
functions reasonably necessary for the management of the day-to-day operations
of the Company;

               (iii) subject to the provisions of Section 3(c) and 4 hereof, (A)
locate, analyze and select potential investments in Real Estate Assets, (B)
structure and negotiate the terms and conditions of transactions pursuant to
which investment in Real Estate Assets will be made, (C) perform due diligence
on prospective investments and summarize the results of such work, (D) make
investments in Real Estate Assets on behalf of the Company or the Operating
Partnership in compliance with the investment objectives and policies of the
Company, (E) if necessary, arrange for financing and refinancing and make other
changes in the asset or capital structure of Real Estate Assets, (F) dispose of,
reinvest or distribute the proceeds from the sale of, or otherwise deal with the
investments in, Real Estate Assets; (G) obtain all entitlements for the Real
Estate Assets, (H) enter into construction contracts and other contracts for the
development of Real Estate Assets, (I) enter into leases and service contracts
for Real Estate Assets, including oversight of Affiliated companies that perform
property management services for the Company, if any, (J) oversee non-affiliated
property managers and other non-affiliated

                                       10
<PAGE>

Persons who perform services for the Company, and (K) to the extent necessary,
perform all other operational functions for the development, maintenance, and
administration of Real Estate Assets;

               (iv) consult with the officers and the Board of Directors of the
Company and assist the Board of Directors in the formulation and implementation
of the Company's financial policies, and, as necessary, furnish the Board of
Directors 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 borrowings proposed to be undertaken by the
Company, if any;

               (v) provide the Board of Directors with periodic reports
regarding prospective investments which include recommendations and supporting
documentation required by them to properly evaluate the proposed investment;

               (vi) obtain the prior approval of the Board of Directors
(including a majority of all Independent Directors) for any and all investments
in Real Estate Assets (as well as any financing acquired by the Company or the
Operating Partnership in connection with such investment);

               (vii) notify the Board of all proposed material transactions
before they are completed;

               (viii) serve as the Company's investment and financial advisor
and provide the Board with relevant market research and economic and statistical
data in connection with the Company's assets and investment objectives and
policies;

               (ix) obtain reports (which may be prepared by unrelated third
parties, the Advisor, or its Affiliates), where appropriate, concerning the
value of investments or contemplated investments of the Company in Real Estate
Assets;

               (x) formulate and oversee the implementation of strategies for
the administration, promotion, management, operation, maintenance, improvement,
financing and refinancing, marketing, leasing, and disposition of Real Estate
Assets on an overall portfolio basis;

               (xi) monitor applicable markets and obtain reports (which may be
prepared by unrelated third parties, the Advisor or Affiliates) where
appropriate, concerning the values of existing or prospective investments of the
Company and monitor and evaluate the performance of the investments of the
Company;

               (xii) conduct periodic on-site property visits to some or all (as
the Advisor deems reasonably necessary) of the Real Estate Assets to inspect the
physical condition of the Real Estate Assets and to evaluate the performance of
the related property managers and leasing agents of their duties;

                                       11
<PAGE>

               (xiii) oversee the performance by the property managers of their
duties, including collection and proper deposits of rental payments and payment
of Real Estate Asset expenses and maintenance;

               (xiv) review, analyze and comment upon the operating budgets,
capital budgets and leasing plans prepared and submitted by any property
managers and leasing agents and aggregate these property budgets into the
Company's overall budget and financial reports;

               (xv) review and analyze on-going financial information pertaining
to each Real Estate Asset and the overall portfolio of Real Estate Assets;

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

               (xvii) obtain and maintain, with respect to any Real Estate Asset
and to the extent available, title insurance or other assurance of title and
customary fire, casualty and public liability insurance;

               (xviii) consult with the officers and Directors and assist the
Directors in evaluating and obtaining adequate insurance coverage based upon
risk management determinations;

               (xix) perform and supervise the various management and
operational functions related to the Company's investments in Real Estate
Assets;

               (xx) coordinate and manage relationships between the Company and
any Joint Venture partners;

               (xxi) undertake and perform all services or other activities
necessary and proper to carry out the investment objectives of the Company;

               (xxii) as reasonably necessary, act, or obtain the services of
others to act, as attorney-in-fact or agent of the Company in making, acquiring
and disposing of investments, 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 securing investments;

               (xxiii) assist in negotiations on behalf of the Company with
investment banking firms and other institutions or investors for public or
private sales of securities or for other financing on behalf of the Company, but
in no event in such a way that the Advisor shall be acting as a broker, dealer,
underwriter or investment advisor in securities of or for the Company;

               (xxiv) negotiate on behalf of the Company with banks or lenders
for loans to be made to the Company if necessary, and negotiate on behalf of the
Company with investment banking firms and broker-dealers or negotiate private
sales of securities or obtain loans for the Company if necessary, 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

                                       12
<PAGE>

third parties incurred by the Advisor in connection with the foregoing shall be
the responsibility of the Company;

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

               (xxvi) upon request of the Board of Directors, invest and
reinvest any money of the Company;

               (xxvii) perform all reporting, record keeping, internal controls
and similar matters in a manner to allow the Company to comply with applicable
law, including the Sarbanes-Oxley Act of 2002, as applicable;

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

               (xxix) coordinate with the Company's independent accountants and
auditors the preparation and delivery to the Board of Directors of a report not
less than annually concerning the Advisor's compliance with certain material
aspects of this Agreement and as otherwise requested by the Board of Directors;

               (xxx) provide the officers and Directors with timely updates
related to the overall regulatory environment affecting the Company, as well as
managing compliance with such matters, including but not limited to compliance
with the Sarbanes-Oxley Act of 2002;

               (xxxi) consult with the Board of Directors relating to the
corporate governance structure and appropriate policies and procedures related
thereto;

               (xxxii) supervise the preparation on behalf of the Company of all
reports and returns required by the U. S. Securities and Exchange Commission,
Internal Revenue Service and other state or federal governmental agencies;

               (xxxiii) maintain and preserve the books and records of the
Company and maintain the accounting and other record-keeping functions at the
Real Estate Asset, Company, and Operating Partnership levels;

               (xxxiv) undertake communications with Stockholders in accordance
with applicable law and the Charter, provided, however, that Affiliates of the
Advisor have no obligations to the Company other than as expressly stated
herein, and the Advisor and its Affiliates have no obligations to present to the
Company any specific investment opportunity except as set forth in the Charter
and described in the Prospectus;

               (xxxv) manage communications with Stockholders, including
answering phone calls, preparing and sending written and electronic reports and
other communications;

               (xxxvi) establish technology infrastructure to assist in
providing Stockholder support and service;

                                       13
<PAGE>

               (xxxvii) appoint and supervise the Company's transfer agent in
the maintenance of a stock ledger reflecting a record of the Stockholders and
their ownership of Common Stock;

               (xxxviii) manage and coordinate with the transfer agent the
periodic dividend process and the payments to Stockholders;

               (xxxix) 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, lenders, technical advisors, attorneys, brokers,
underwriters, corporate fiduciaries, escrow agents, depositaries, custodians,
agents for collection, insurers, insurance agents, banks, builders, developers,
construction companies, property owners, mortgagors, and any and all agents for
any of the foregoing, including Affiliates of the Advisor, and Persons acting in
any other capacity deemed by the Advisor necessary or desirable for the
performance of any of the foregoing services, including but not limited to
entering into contracts in the name of the Company with any of the foregoing;
and

               (xl) do all things necessary to assure its ability to render the
services described in this Agreement. The Advisor has a fiduciary responsibility
to the Company and to the Stockholders in carrying out its duties under this
Agreement. In providing advice and services hereunder, the Advisor shall not (i)
engage in any activity which would require it to be registered as an "Investment
Advisor," as that term is defined in the Investment Advisors Act of 1940 or in
any state securities law or (ii) cause the Company to make such investments as
would cause the Company to become an "Investment Company," as that term is
defined in the Investment Company Act of 1940.

     5.   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 and to the auditors of the Company.

     6.   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, in the conduct
of its responsibilities to the Company, shall maintain adequate and separate
books and records for the Company's operations in accordance with United States
GAAP, which shall be supported by sufficient documentation to ascertain that
such books and records are properly and accurately recorded. Such books and
records shall be the property of the Company. Such books and records shall
include all information necessary to calculate and audit the fees or
reimbursements paid under this Agreement. The Advisor shall utilize procedures
to attempt to ensure such control over accounting and financial transactions as
is reasonably required to protect the Company's assets from theft, error or
fraudulent activity. All financial statements that the Advisor delivers to the
Company shall be prepared on an accrual

                                       14
<PAGE>

basis in accordance with GAAP, except for special financial reports which by
their nature require a deviation from GAAP. The Advisor shall maintain necessary
liaison with the Company's independent accountants and shall provide such
accountants with such reports and other information as the Company shall
request. The Advisor shall at all reasonable times have access to the books and
records of the Company.

     7.   Limitations on Activities. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would (a) adversely affect the
status of the Company as a REIT, (b) subject the Company to regulation under the
Investment Company Act of 1940, as amended, (c) violate any law, rule,
regulation or statement of policy of any governmental body or agency having
jurisdiction over the Company, its Common Stock or its other securities, or (d)
violate the Charter 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. Notwithstanding
the foregoing, the Advisor, its directors, officers, employees and stockholders,
and stockholders, directors and officers 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 or employees, or stockholders, directors
or officers of the Advisor's Affiliates except as provided in this Agreement.

     8.   Relationship With Directors. Subject to Section 7 of this Agreement
and to restrictions set forth in the Charter or deemed advisable with respect to
the qualification of the Company as a REIT, directors, officers and employees of
the Advisor or an Affiliate of the Advisor or any corporate parents of an
Affiliate, or directors, officers or stockholders of any director, officer or
corporate parent of an Affiliate may serve as a Director and as officers of the
Company, except that no officer or employee of the Advisor or its Affiliates who
also is a Director or officer of the Company shall receive any compensation from
the Company for serving as a Director or officer other than reasonable
reimbursement for travel and related expenses incurred in attending meetings of
the Directors.

     9.   Fees.

          (a)  Acquisition and Advisory Fees. Subject to the following sentence,
the Company shall pay to the Advisor, as compensation for services rendered by
the Advisor in connection with the investigation, selection and acquisition (by
purchase, investment or exchange) of Real Estate Assets, a fee in an amount
equal to 3% of, (i) with respect to any Real Estate Asset acquired by the
Company directly or indirectly other than a Real Estate Related Investment, the
Contract Price of the underlying property, and (ii) with respect to any Real
Estate Related Investment acquired by the Company directly or indirectly, the
Contract Price of the underlying property.

          (b)  Debt Financing Fee. The Company shall pay the Advisor 1% of the
amount available under any loan or line of credit made available to the Company
upon the Company's receipt of the proceeds from such loan or line of credit.

                                       15
<PAGE>

          (c)  Asset Management Fee. On the last day of each month, the Company
shall pay the Advisor an "Asset Management Fee" in an amount equal to
one-twelfth of 2% of (i) the aggregate assets value for operating assets and
(ii) the total Contract Price plus capitalized entitlement and project related
costs for Real Estate Assets held for less than or equal to one year by us,
directly or indirectly, as of the last day of the preceding month other than a
Real Estate-Related Investment and (iii) the appraised value as determined from
time to time for Real Estate Assets held for greater than one year by us,
directly or indirectly, as of the last day of the preceding month other than a
Real Estate-Related Investment and (iv) the appraised value of the underlying
property, for any Real Estate-Related Investment held by, us directly or
indirectly, as of the last day of the preceding month, in the case of subsection
(iv) not to exceed one-twelfth of 2% of the funds advanced by us for the
purchase of the Real Estate-Related Investment.

          (d)  Disposition Fee. If the Advisor or an Affiliate provides a
substantial amount of the services (as determined by a majority of the
Directors, including a majority of the Independent Directors), the Advisor shall
receive at the closing a Disposition Fee equal to, (1) in the case of the sale
of any Real Estate Asset, other than Real Estate-Related Investments, the lesser
of: (a) one-half of the Competitive Real Estate Commission paid up to 3% of the
Contract Price or, if none is paid, the amount that customarily would be paid,
or (b) 3% of the Contract Price of each Real Estate Asset sold, and (2) in the
case of the sale of any Real Estate-Related Investments, 3% of the sales price
of such Real Estate-Related Investments. Any Disposition Fee payable under this
section may be paid in addition to real estate commissions paid to
non-Affiliates, provided that the total real estate commissions (including such
Disposition Fee) paid to all Persons by the Company for each Real Estate Asset,
upon disposition thereof, shall not exceed an amount equal to the lesser of (i)
6% of the aggregate Contract Price of each Real Estate Asset or (ii) the
Competitive Real Estate Commission for each Real Estate Asset. The Company will
pay the Disposition Fees for a property at the time the property is sold.

          (e)  Subordinated Participation in Net Sale Proceeds. The Subordinated
Participation in Net Sale Proceeds shall be payable to the Advisor at the time
or times that the Company determines that the Subordinated Participation in Net
Sale Proceeds has been earned by the Advisor.

          (f)  Subordinated Incentive Fee Due Upon Listing. Upon Listing, the
Advisor shall be entitled to the Subordinated Incentive Fee Upon Listing. The
Subordinated Incentive Fee Due Upon Listing shall be payable to the Advisor
following twelve (12) months after Listing. The Company shall have the option to
pay such fee in the form of cash, Common Stock, a promissory note with interest
accrued as of the date of Listing, or any combination of the foregoing, as
determined by the Board of Directors. In the event the Subordinated Incentive
Fee Due Upon Listing is paid to the Advisor following Listing, the Advisor will
not be entitled to receive any payments of Subordinated Performance Fee Upon
Termination or Subordinated Participation in Net Sale Proceeds following receipt
of the Subordinated Incentive Fee Due Upon Listing.

          (g)  Subordinated Performance Fee Due Upon Termination. Upon
termination of this Agreement, the Advisor shall be entitled to the Subordinated
Performance Fee Due Upon Termination as set forth in Section 16(a)(ii) of this
Agreement.

                                       16
<PAGE>

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

     10.  Expenses.

          (a)  Reimbursable Expenses. In addition to the compensation paid to
the Advisor pursuant to Section 9 hereof, the Company shall pay directly or
reimburse the Advisor for all of the expenses paid or incurred by the Advisor
(to the extent not reimbursable by another party, such as the Broker-Dealer or
the Sponsor) in connection with the services it provides to the Company pursuant
to this Agreement, including, but not limited to:

               (i) the 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 10 to
the extent that such reimbursement of expenses associated with the Offering
exceeds 5% of the Gross Proceeds (including all reimbursements paid to other
Affiliates of the Company). The Advisor shall be responsible for the payment of
all such Organization and Offering Expenses in excess of 15% of the Gross
Proceeds;

               (ii) subject to Section 9(a), all Acquisition Expenses incurred
in connection with the investigation, selection and acquisition of a Real Estate
Asset in an amount equal to up to 0.5% of (A) for any Real Estate Asset acquired
by the Fund directly or through a Joint Venture, other than a Real Estate
Related Investment, the Contract Price of the underlying property, and (B) for
any Real Estate Related Investment acquired by the Fund directly or indirectly,
the Contract Price of the underlying property, in the case of this subsection
(B), not to exceed 1.0% of the funds advanced by the Fund for the acquisition of
the Real Estate Asset; the actual out-of-pocket cost of goods and services used
by the Company and obtained from entities not affiliated with the Advisor
including brokerage and other fees paid in connection with the purchase,
operation and sale of Real Estate Assets;

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

                                       17
<PAGE>

               (iv) taxes and assessments on income or Real Estate Asset and
taxes as an expense of doing business and any taxes otherwise imposed on the
Company, the Operating Partnership, its business or income;

               (v) costs associated with insurance required in connection with
the business of the Company, the Operating Partnership, or by the Board;

               (vi) expenses of managing and operating Real Estate Assets owned
by the Company through the Operating Partnership, whether payable to an
Affiliate of the Company or a non-affiliated Person;

               (vii) all expenses in connection with payments to Directors and
meetings of the Directors and Stockholders;

               (viii) expenses associated with Listing or with the issuance and
distribution of securities other than the Common Stock issued in the Offering,
such as fees, advertising expenses, taxes, legal and accounting fees, listing
and registration fees;

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

               (x) expenses of organizing, converting, modifying, merging,
liquidating or dissolving the Company or of amending the Charter or the Bylaws;

               (xi) expenses of maintaining communications with Stockholders,
including the cost of preparation, printing, and mailing annual reports and
other Stockholder reports, proxy statements and other reports required by
governmental entities;

               (xii) audit, accounting and legal fees, and other fees for
professional services relating to the operations of the Company and the
Operating Partnership and all such fees incurred at the request, or on behalf
of, the Independent Directors or any committee of the Board of Directors;

               (xiii) out-of-pocket expenses of maintaining communications with
Shareholders, including the cost of preparation, printing, and mailing annual
reports and other Shareholder reports, proxy statements and other reports
required by governmental entities;

                                       18
<PAGE>

               (xiv) out-of-pocket costs for the Company and the Operating
Partnership to comply with all applicable laws, regulation and ordinances; and

               (xv) all other out-of-pocket costs necessary for the operation
of the Company and the Operating Partnership and its Real Estate Assets incurred
by the Advisor in performing its duties hereunder. The Company shall also
reimburse the Advisor or Affiliates of the Advisor for all direct and indirect
costs and expenses incurred on behalf of the Company prior to the execution of
this Agreement. In the event the Company does not raise $19,000,000 in its
Offering, the Advisor will not be reimbursed for Organizational and Offering
Expenses. The total of all Acquisition Fees and Acquisition Expenses paid by the
Company in connection with the purchase of a Real Estate Asset by the Company
shall be reasonable, and shall in no event exceed an amount equal to 6% of the
Contract Price, or in the case of a mortgage loan, 6% of the funds advanced;
provided, however, that a majority of the Directors (including the majority of
the Independent Directors) not otherwise interested in the transaction may
approve fees and expenses in excess of these limits if they determine the
transaction to be commercially competitive, fair and reasonable to the Company.

     (b)  Other Services. Should the Directors request that the Advisor or any
director, officer or employee thereof render services for the Company other than
set forth in Section 4, such services shall be separately compensated at such
rates and in such amounts as are agreed by the Advisor and a majority of the
Independent Directors, subject to the limitations contained in the Charter, and
shall not be deemed to be services pursuant to the terms of this Agreement.

     (c)  Timing of and Limitations on Reimbursements.

          (i) Expenses incurred by the Advisor on behalf of the Company and
payable pursuant to this Section 10 shall be reimbursed no less frequently than
monthly to the Advisor. The Advisor shall prepare a statement documenting the
expenses of the Company and the Operating Partnership during each quarter, and
shall deliver such statement to the Company within 45 days after the end of each
quarter. Subject to the Excess Expense Guidelines, the Company may advance funds
to the Advisor for expenses the Advisor anticipates will be incurred by the
Advisor within the current month and any such advances shall be deducted from
the amounts reimbursed by the Company to the Advisor.

          (ii) Notwithstanding anything else in this Section 10 to the contrary,
the expenses enumerated in this Section 10 shall not become reimbursable to the
Advisor unless and until the Company has raised $16,150,000 in the Offering.

          (iii) The Company shall not reimburse the Advisor at the end of any
fiscal quarter Operating Expenses that, in the four consecutive fiscal quarters
then ended (the "Expense Year") exceed (the "Excess Amount") the greater of 2%
of Average Invested Assets or 25% of Net Income (the "Excess Expense
Guidelines") for such year unless a majority of the Independent Directors
determines that such excess was justified, based on unusual and nonrecurring
factors which they deem sufficient. If a majority of the Independent Directors
does not approve such excess as being so justified, any Excess Amount paid to
the Advisor during a fiscal quarter shall be repaid to the Company. If a
majority of the Independent Directors

                                       19
<PAGE>

determines such excess was justified, then within 60 days after the end of any
fiscal quarter of the Company for which total reimbursed Operating Expenses for
the Expense Year exceed the Excess Expense Guidelines, the Advisor, at the
direction of the a majority of the Independent Directors, shall send to the
stockholders a written disclosure of such fact, together with an explanation of
the factors the a majority of the Independent Directors considered in
determining that such excess expenses were justified. The Company will ensure
that such determination will be reflected in the minutes of the meetings of the
Board of Directors. All figures used in the foregoing computation shall be
determined in accordance with GAAP.

     11.  Other Activities of the Advisor.

          (a)  General. The Advisor shall not render advice to other Persons
(including other REITs) nor manage other programs advised, sponsored or
organized by the Advisor or its Affiliates. 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 partnership, corporation, firm, individual, trust or
association.

          (b)  Nothing contained herein shall 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
partnership, corporation, firm, individual, trust or association.

     12.  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.

     13.  Representations and Warranties.

          (a)  Of the Company. To induce the Advisor to enter into this
Agreement, the Company hereby represents and warrants that:

               (i) The Company is a corporation, duly organized, validly
existing and in good standing under the laws of the State of Maryland with all
requisite corporate power and authority and all material licenses, permits and
authorizations necessary to carry out the transactions contemplated by this
Agreement.

               (ii) The Company's execution, delivery and performance of this
Agreement has been duly authorized by the Board of Directors including a
majority of all Independent Directors of the Company. This Agreement constitutes
the valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms. The Company's execution and delivery of this
Agreement and its fulfillment of and compliance with the respective terms hereof
do not and will not (i) conflict with or result in a breach of the terms,
conditions or provisions of, (ii) constitute a default under, (iii) result in
the creation of any lien, security interest, charge or encumbrance upon the
assets of the Company pursuant to, (iv) give any third party the right to
modify, terminate or accelerate any obligation under, (v) result in a violation
of or (vi) require any authorization, consent, approval, exception or other
action by or notice to any court or administrative or governmental body pursuant
to, the Charter or Bylaws or

                                       20
<PAGE>

any law, statute, rule or regulation to which the Company is subject, or any
agreement, instrument, order, judgment or decree by which the Company is bound,
in any such case in a manner that would have a material adverse effect on the
ability of the Company to perform any of its obligations under this Agreement.

          (b)  Of the Advisor. To induce the Company to enter into this
Agreement, the Advisor represents and warrants that:

               (i) The Advisor is a limited liability company, duly organized,
validly existing and in good standing under the laws of the State of California
with all requisite corporate power and authority and all material licenses,
permits and authorizations necessary to carry out the transactions contemplated
by this Agreement.

               (ii) The Advisor's execution, delivery and performance of this
Agreement has been duly authorized by its general partner. This Agreement
constitutes a valid and binding obligation of the Advisor, enforceable against
the Advisor in accordance with its terms. The Advisor's execution and delivery
of this Agreement and its fulfillment of and compliance with the respective
terms hereof do not and will not (i) conflict with or result in a breach of the
terms, conditions or provisions of, (ii) constitute a default under, (iii)
result in the creation of any lien, security interest, charge or encumbrance
upon the Advisor's assets pursuant to, (iv) give any third party the right to
modify, terminate or accelerate any obligation under,

               (iii) result in a violation of or (vi) require any authorization,
consent, approval, exemption or other action by or notice to any court or
administrative or governmental body pursuant to, the Advisor's articles of
incorporation or bylaws, or any law, statute, rule or regulation to which the
Advisor is subject, or any agreement, instrument, order, judgment or decree by
which the Advisor is bound, in any such case in a manner that would have a
material adverse effect on the ability of the Advisor to perform any of its
obligations under this Agreement.

               (iv) The Advisor has received copies of the Charter, the Bylaws,
and the Registration Statement and of the Operating Partnership's limited
partnership agreement and is familiar with the terms thereof, including without
limitation the investment limitations included therein. The Advisor warrants
that it will use reasonable care to avoid any act or omission that would
conflict with the terms of the Charter, the Bylaws, the Registration Statement,
or the Operating Partnership's limited partnership agreement in the absence of
the express direction of a majority of the Independent Directors.

     14.  Term; Termination of Agreement. This Agreement shall continue in force
until the first anniversary of the date hereof, subject to an unlimited number
of successive one-year renewals upon mutual consent of the parties. The Company,
acting through the Board, will 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.

     15.  Termination.

          (a)  Termination by Either Party. This Agreement may be terminated
upon 60 days written notice without cause or penalty, by either party (by a
majority of the Independent

                                       21
<PAGE>

Directors or a majority of the board of directors of the Advisor or its managing
member, as the case may be).

          (b)  Termination by the Advisor. This Agreement may be terminated
immediately by the Advisor in the event of (i) the bankruptcy of the Company or
commencement of any bankruptcy or similar insolvency proceedings of the Company,
or (ii) any material breach of this Agreement by the Company not cured by the
Company within 30 days after written notice thereof.

     16.  Payments to and Duties of Advisor upon Termination. Payments to the
Advisor pursuant to this Section 16 shall be subject to the Excess Expenses
Guidelines to the extent applicable.

          (a)  After the Termination Date, the Advisor shall not be entitled to
compensation for further services hereunder except it shall be entitled to
receive from the Company within 30 days after the effective date of such
termination the following:

               (i)  all unpaid reimbursable expenses and all earned but unpaid
fees payable to the Advisor prior to termination of this Agreement; and

               (ii) the Subordinated Performance Fee Due Upon Termination,
provided that no Subordinated Performance Fee Due Upon Termination will be paid
if the Company has paid or is obligated to pay the Subordinated Incentive Fee
Due Upon Listing.

          (b)  In the event this Agreement expires without the consent of the
Advisor, or is terminated for any reason other than by the Advisor pursuant to
Section 15, the Company shall, at the election of the Advisor or any of its
Affiliates and at any time (and from time to time) after the effective date of
such expiration or termination, purchase all or a portion of the partnership
interests held by the Advisor and its Affiliates in the Operating Partnership,
subject to Board approval and applicable law. The purchase price shall be paid
in cash or, at the election of the seller, Common Stock, and shall be payable
within 120 days after the Advisor or its Affiliates (as applicable) gives the
Company written notice of its desire to sell all or a portion of the partnership
interests of the Operating Partnership held by such Person to the Company. The
Company agrees to keep a sufficient number of authorized but unissued shares of
Common Stock available for issuance pursuant to this Section 16(b) and shall
issue shares of Common Stock as may be required hereunder. The purchase price of
the partnership interests in the Operating Partnership sold to the Company
pursuant to this Section 16(b) shall be (i) in the event the seller elects to
receive cash, the amount the seller would receive under a redemption of such
interests under the Operating Partnership Agreement assuming the Company paid
cash for such redemption, or (ii) in the event the seller elects to receive
Common Stock, the amount of Common Stock the seller would receive under a
redemption of such interests under the Operating Partnership Agreement assuming
the Company paid Common Stock for such redemption.

          (c)  The Advisor shall promptly upon termination:

                                       22
<PAGE>

               (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;

               (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 Real Estate
Assets, and documents of the Company then in the custody of the Advisor; and

               (iv) cooperate with the Company to provide an orderly management
transition.

     17.  Assignment to an Affiliate. This Agreement may be assigned by the
Advisor to an Affiliate with the approval of 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 Directors. 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.

     18.  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 or the Charter. Notwithstanding the foregoing, (i) the Company will
not indemnify nor hold harmless the Advisor and its Affiliates unless: (A) the
Advisor or its Affiliate has determined in good faith that the course of
conduct which caused the loss, liability or expenses was in the best interests
of the Company; (B) the Advisor or its Affiliate was acting on behalf of the
Company or performing services for the Company; (C) such claim was not the
result of the gross negligence or willful misconduct of the Advisor or its
Affiliate; and (D) such indemnification or agreement to hold harmless is
recoverable only out of the net assets of the Company, including insurance
proceeds, and not from the shareholders of the Company, and (ii) the Advisor
shall not be entitled to indemnification or be held harmless pursuant to this
Section 18 for any activity which the Advisor shall be required to indemnify or
hold harmless the Company pursuant to Section 19.

     19.  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, willful misfeasance, misconduct, or reckless disregard of its duties, but
Advisor shall not be held responsible for any action of the Directors in
declining to follow any advice or recommendation given by the Advisor.

     20.  Advisor's Liability.

          (a)  Notwithstanding any other provisions of this Agreement, in no
event shall the Company make any claim against the Advisor, or its Affiliates,
on account of any good faith interpretation by Advisor of the provisions of this
Agreement (even if such interpretation is later

                                       23
<PAGE>

determined to be legally incorrect) or any alleged errors in judgment made in
good faith and in accordance with this Agreement in connection with the
operations of the Company hereunder by the Advisor or the performance of any
advisory or technical services provided by or arranged by the Advisor. The
provisions of this Section 20(a) shall not be deemed to release the Advisor from
liability for its gross negligence or reckless disregard of its duties.

          (b)  The Company shall not object to any expenditures made by the
Advisor in good faith in the course of its performance of its obligations under
this Agreement or in settlement of any claim arising out of the operation of the
Company unless such expenditure is specifically prohibited by this Agreement or
the Charter. The provisions of this Section 20(b) shall not be deemed to release
the Advisor from liability for its gross negligence of its duties.

          (c)  In no event will either party be liable for damages based on loss
of income, profit or savings or indirect, incidental, consequential, exemplary,
punitive or special damages of the other party or person, including third
parties, even if such party has been advised of the possibility of such damages
in advance, and all such damages are expressly disclaimed. In no event will the
Advisor's aggregate liability under this Agreement ever exceed the total amount
of fees it actually receives from the Company pursuant to Section 9.

     21.  Notices. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report or other communication is required by the Charter,
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 Board and to the Company:              Shopoff Properties Trust, Inc.
                                              8951 Research Drive
                                              Irvine, California  92618
                                              Attention:  William A. Shopoff

To the Advisor:                               Shopoff Advisors, L.P.
                                              8951 Research Drive
                                              Irvine, California  92618
                                              Attention:  William A. Shopoff

To the Operating Partnership                  Shopoff Partners, L.P.
                                              8951 Research Drive
                                              Irvine, California  92618
                                              Attention: William A. Shopoff

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

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

                                       24
<PAGE>

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

     24.  Construction. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of California.

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

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

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

     28.  Titles Not to Affect Interpretation. The titles of paragraphs and
subparagraphs contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

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

                                       25
<PAGE>

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

SHOPOFF PROPERTIES TRUST, INC.

By:
    ------------------------------------
Name:
      ----------------------------------
Title:
       ---------------------------------

SHOPOFF ADVISORS, L.P.

By:
    ------------------------------------
Name:
      ----------------------------------
Title:
       ---------------------------------

SHOPOFF PARTNERS, L.P.

By:
    ------------------------------------
Name:
      ----------------------------------
Title:
       ---------------------------------

                                       26

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