Document:

exv4w1

 

Exhibit 4.1

eBay Inc.

2001 Equity Incentive Plan, As Amended

Initial Stockholder Approval on May 25, 2001

Amendment Adopted by the Board of Directors on March 14, 2002

Stockholder Approval of Amendment on June 5, 2002

Amendment Adopted by the Compensation Committee as of March 18, 2003

Stockholder Approval of Amendment on June 26, 2003

Amendment Adopted by the Compensation Committee on March 18, 2004

Stockholder Approval of Amendment on June 24, 2004

Amendment Adopted By the Compensation Committee on March 21, 2006

Stockholder Approval of Amendment on June 13, 2006

Termination Date: March 21, 2011

1. Purposes.

     (a) Eligible Option Recipients. The persons eligible to receive Options are the Employees,
Directors and Consultants of the Company and its Affiliates.

     (b) Available Options. The purpose of the Plan is to provide a means by which eligible
recipients of Options may be given an opportunity to benefit from increases in value of the Common
Stock through the granting of (i) Incentive Stock Options and (ii) Nonstatutory Stock Options.

     (c) General Purpose. The Company, by means of the Plan, seeks to retain the services of the
group of persons eligible to receive Options, to secure and retain the services of new members of
this group and to provide incentives for such persons to exert maximum efforts for the success of
the Company and its Affiliates.

2. Definitions.

     (a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code, and any other entity which is controlled, directly or indirectly, by the Company.

     (b) “Board” means the Board of Directors of the Company.

     (c) “Code” means the United States Internal Revenue Code of 1986, as amended.

     (d) “Committee” means a committee of one or more members of the Board appointed by the Board
in accordance with subsection 3(c).

     (e) “Common Stock” means the common stock of the Company.

     (f) “Company” means eBay Inc., a Delaware corporation.

     (g) “Consultant” means any natural person, including an advisor, (i) engaged by the Company or
an Affiliate to render consulting or advisory services and who is compensated for such services, or
(ii) who is a member of the Board of Directors or comparable governing body of an Affiliate and who
is compensated for such services. However, the term “Consultant” shall not include Directors who
are not compensated by the Company for their services as Directors. In addition, the payment of a
director’s fee by the Company for services as a Director shall not cause a Director to be
considered a “Consultant” for purposes of the Plan.

     (h) “Continuous Service” means that the Optionholder’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. The
Optionholder’s Continuous Service shall not be deemed to have terminated merely because of a change
in the capacity in which the Optionholder renders service to the Company or an Affiliate as an
Employee, Consultant or Director or a change in the entity for which the Optionholder renders such
service, provided that there is no

 

 

interruption or termination of the Optionholder’s service with the Company or an Affiliate.
For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or
a Director will not constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party’s sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave or any other personal leave.

     (i) “Covered Employee” means the chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be reported to
stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

     (j) “Director” means a member of the Board of Directors of the Company.

     (k) “Disability” means the inability of a natural person to continue to perform services for
the Company or any Affiliate of the type previously performed prior to the occurrence of such
Disability, whether as a result of physical and/or mental illness or injury, as determined by a
physician acceptable to the Company, for a period that is expected to be of a duration of no less
than six (6) months.

     (l) “Employee” means any person employed for tax purposes by the Company or an Affiliate. Mere
service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be
sufficient to constitute “employment” by the Company or an Affiliate.

     (m) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     (n) “Fair Market Value” means, as of any date, the value of the Common Stock determined as
follows:

     (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq
National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock
shall be the closing sales price for such stock (or the closing bid, if no sales were reported)
as quoted on such exchange or market (or the exchange or market with the greatest volume of
trading in the Common Stock) on the last market trading day prior to the day of determination, as
reported in The Wall Street Journal or such other source as the Board deems reliable.

     (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.

     (o) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

     (p) “Non-Employee Director” means a Director who either (i) is not a current Employee or
Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or
indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or
in any capacity other than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
(“Regulation S-K”)), does not possess an interest in any other transaction as to which disclosure
would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship
as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise
considered a “non-employee director” for purposes of Rule 16b-3.

     (q) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

     (r) “Officer” means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

     (s) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant
to Section 6 of the Plan.

     (t) “Option Agreement” means a written agreement between the Company and an Optionholder
evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be
subject to the terms and conditions of the Plan.

     (u) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

 

 

     (v) “Outside Director” means a Director who either (i) is not a current employee of the
Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated
under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” receiving compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an “affiliated corporation” at any time and is
not currently receiving direct or indirect remuneration from the Company or an “affiliated
corporation” for services in any capacity other than as a Director or (ii) is otherwise considered
an “outside director” for purposes of Section 162(m) of the Code.

     (w) “Plan” means this eBay Inc. 2001 Equity Incentive Plan, as amended.

     (x) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

     (y) “Securities Act” means the United States Securities Act of 1933, as amended.

     (z) “Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section
424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any of its Affiliates.

3. Administration.

     (a) Administration by Board. The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).

     (b) Powers of Board. The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

     (i) To determine from time to time which of the persons eligible under the Plan shall be
granted Options; when and how each Option shall be granted; what type or combination of types of
Option shall be granted; the provisions of each Option granted (which need not be identical),
including the time or times when a person shall be permitted to receive Common Stock pursuant to
an Option; and the number of shares of Common Stock with respect to which an Option shall be
granted to each such person.

     (ii) To construe and interpret the Plan and Options granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board, in the exercise of this
power, may correct any defect, omission or inconsistency in the Plan or in any Option Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the Plan fully
effective.

     (iii) To amend the Plan or an Option as provided in Section 11.

     (iv) To terminate or suspend the Plan as provided in Section 12.

     (v) Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient in its sole discretion to promote the best interests of the Company and its
stockholders that are not in conflict with the provisions of the Plan.

(c) Delegation to Committee.

     (i) General. The Board may delegate administration of the Plan to a Committee or Committees
of one (1) or more members of the Board, and the term “Committee” shall apply to any person or
persons to whom such authority has been delegated. If administration is delegated to a Committee,
the Committee shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a subcommittee of one (1)
or more members of the Board any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the
Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at
any time and revest in the Board the administration of the Plan.

     (ii) Committee Composition when Common Stock is Publicly Traded. At such time as the Common
Stock is publicly traded, in the discretion of the Board, a Committee may consist solely of two
(2) or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of
two or more Non-Employee Directors, in accordance with Rule 16b-3. Within the

 

 

scope of such authority, the Board or the Committee may (1) delegate to a committee of one
or more members of the Board who are not Outside Directors the authority to grant Options to
eligible persons who are either (a) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Option or (b) not persons with
respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (2) delegate
to a committee of one or more members of the Board who are not Non-Employee Directors the
authority to grant Options to eligible persons who are not then subject to Section 16 of the
Exchange Act.

     (d) Effect of Board’s Decision. All determinations, interpretations and constructions made by
the Board in good faith shall not be subject to review by anyone and shall be final, binding and
conclusive on all Optionholders and any other person having an interest in such determination,
interpretation or construction.

4. Shares Subject to the Plan.

     (a) Share Reserve. Subject to the provisions of Section 10 relating to adjustments upon
changes in Common Stock, the Common Stock that may be issued pursuant to Options shall not exceed
in the aggregate Two Hundred Twenty Two Million (222,000,000)1 shares of Common Stock.

     (b) Reversion of Shares to the Share Reserve. If any Option shall for any reason expire or
otherwise terminate, in whole or in part, without having been exercised in full, the shares of
Common Stock not acquired under such Option shall revert to and again become available for issuance
under the Plan. If an Optionholder exercises an Option by attesting to the ownership of shares of
Common Stock in accordance with the provisions of Section 6(c) below, only the net number of
additional shares issued to the Optionholder shall be deducted from the share reserve.

     (c) Source of Shares. The shares of Common Stock subject to the Plan may be unissued shares
or reacquired shares, bought on the market or otherwise.

5. Eligibility.

     (a) Eligibility for Specific Options. Incentive Stock Options may be granted only to
Employees. Nonstatutory Stock Options may be granted to Employees, Directors and Consultants.

     (b) Non-Employee Directors. Notwithstanding the provisions of subsection 5(a) hereof, a
Director who is not an Employee only may be granted nondiscretionary Options that the Stockholders
have approved as to the following option provisions: Number of shares, date of automatic grant,
term, exercise price, consideration, vesting schedule, exercise schedule, and the post-termination
exercise periods.

     (c) Ten Percent Stockholders. Notwithstanding the provisions of subsection 5(a) hereof, a Ten
Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of
such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock
at the date of grant and the Option is not exercisable after the expiration of five (5) years from
the date of grant.

     (d) Section 162(m) Limitation. Notwithstanding the provisions of subsection 5(a) hereof and
subject to the provisions of Section 10 relating to adjustments upon changes in the shares of
Common Stock, no Employee shall be eligible to be granted Options covering more than Four Million
(4,000,000)1 shares of Common Stock during any calendar year.

     (e) Consultants. Notwithstanding the provisions of subsection 5(a) hereof, a Consultant shall
not be eligible for the grant of an Option if, at the time of grant, a Form S-8 Registration
Statement under the Securities Act (“Form S-8”) is not available to register either the offer or
the sale of the Company’s securities to such Consultant because of the nature of the services that
the Consultant is providing to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8.

 

			
	(1)	 	Denotes that such share number reflects the stock split of eBay’s common stock occurring in 8/03 and 2/05.

 

 

6. Option Provisions.

     Each Option shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. All Options shall be separately designated Incentive Stock Options or
Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates will be issued for shares of Common Stock purchased on exercise of each
type of Option. The provisions of separate Options need not be identical, but each Option shall
include (through incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

     (a) Term. Subject to the provisions of subsection 5(c) regarding Ten Percent Stockholders, no
Option shall be exercisable after the expiration of ten (10) years from the date it was granted.

(b) Exercise Price.

     (i) Subject to the provisions of subsection 5(c) regarding Ten Percent Stockholders and
subsection 6(b)(ii) below, the exercise price of each Option shall be not less than one hundred
percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the
Option is granted.

     (ii) An Option may be granted with an exercise price lower than that set forth in subsection
6(b)(i) above if such Option is granted pursuant to an assumption or substitution for another
option in a manner satisfying the provisions of Section 424(a) of the Code.

(c) Consideration.

     (i) The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the
extent permitted by applicable statutes and regulations, either (i) in cash at the time the
Option is exercised or (ii) at the discretion of the Board at the time of the grant of the Option
(or subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the Company, or
attestation to the Company of ownership, of other Common Stock or (2) in any other form of legal
consideration that may be acceptable to the Board.

     (ii) Unless otherwise specifically provided, the purchase price of Common Stock acquired
pursuant to an Option that is paid by delivery to the Company, or attestation to the Company of
ownership, of other Common Stock shall be paid only by shares of the Common Stock of the Company
that have been held for more than six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes).

     (d) Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing,
the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (e) Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option shall be
transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option does
not provide for transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be exercisable during the
lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (f) Vesting Generally. The total number of shares of Common Stock subject to an Option may,
but need not, vest and therefore become exercisable in periodic installments that may, but need
not, be equal. The Option may be subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The provisions of this
subsection 6(f) are subject to any Option provisions governing the minimum number of shares of
Common Stock as to which an Option may be exercised.

     (g) Termination of Continuous Service. In the event an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise
his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of
the date of termination) but only within such period of time ending on the earlier of (i) the date
three

 

 

(3) months following the termination of the Optionholder’s Continuous Service (or such longer
or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the
Option as set forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement, the Option shall
terminate.

     (h) Extension of Termination Date. An Optionholder’s Option Agreement may also provide that
if the exercise of the Option following the termination of the Optionholder’s Continuous Service
(other than upon the Optionholder’s death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the
term of the Option or (ii) the expiration of a period of three (3) months after the termination of
the Optionholder’s Continuous Service during which the exercise of the Option would not be in
violation of such registration requirements.

     (i) Disability of Optionholder. In the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her
Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement.
If, after termination, the Optionholder does not exercise his or her Option within the time
specified herein, the Option shall terminate.

     (j) Death of Optionholder. In the event (i) an Optionholder’s Continuous Service terminates
as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if any)
specified in the Option Agreement after the termination of the Optionholder’s Continuous Service
for a reason other than death, then the Option may be exercised (to the extent the Optionholder was
entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person
who acquired the right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionholder’s death, but only within the period ending on the
earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter
period specified in the Option Agreement) or (2) the expiration of the term of such Option as set
forth in the Option Agreement. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate.

7. Covenants of the Company.

     (a) Availability of Shares. During the terms of the Options, the Company shall keep available
at all times the number of shares of Common Stock required to satisfy such Options.

     (b) Securities Law Compliance. The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to grant
Options and to issue and sell shares of Common Stock upon exercise of the Options; provided,
however, that this undertaking shall not require the Company to register under the Securities Act
the Plan, any Option or any Common Stock issued or issuable pursuant to any such Option. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency
the authority which counsel for the Company deems necessary for the lawful issuance and sale of
Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Options unless and until such authority is obtained.

8. Use of Proceeds from Stock.

     Proceeds from the sale of Common Stock pursuant to Options shall constitute general funds of
the Company.

9. Miscellaneous.

     (a) Stockholder Rights. No Optionholder shall be deemed to be the holder of, or to have any
of the rights of a holder with respect to, any shares of Common Stock subject to such Option unless
and until such Optionholder has satisfied all requirements for exercise of the Option pursuant to
its terms.

     (b) No Employment or other Service Rights. Nothing in the Plan or any instrument executed or
Option granted pursuant thereto shall confer upon any Optionholder any right to continue to serve
the Company or an Affiliate in the capacity in effect at the time the Option was granted or shall
affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with
or without notice and with or without cause, for any reason or no reason, (ii) the service of a
Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or
(iii) the service of a Director pursuant to the Bylaws of the Company or

 

 

an Affiliate, and any applicable provisions of the corporate law of the jurisdiction in which
the Company or the Affiliate is incorporated, as the case may be.

     (c) Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market
Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by any Optionholder during any calendar year (under all
plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof which exceed such limit (according to the order in which they were
granted) shall be treated as Nonstatutory Stock Options.

     (d) Investment Assurances. The Company may require an Optionholder, as a condition of
exercising an Option or acquiring Common Stock under any Option, (i) to give written assurances
satisfactory to the Company as to the Optionholder’s knowledge and experience in financial and
business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
who is knowledgeable and experienced in financial and business matters and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of
exercising the Option; (ii) to give written assurances satisfactory to the Company stating that the
Optionholder is acquiring Common Stock subject to the Option for the Optionholder’s own account and
not with any present intention of selling or otherwise distributing the Common Stock; and/or (iii)
to give such other written assurances as the Company shall determine are necessary, desirable or
appropriate to comply with applicable securities regulation and other governing law. The Company
may, upon advice of counsel to the Company, place legends on stock certificates issued under the
Plan as such counsel deems necessary or appropriate in order to comply with applicable securities
laws, including, but not limited to, legends restricting the transfer of the Common Stock.

     (e) Withholding Obligations. To the extent provided by the terms of an Option Agreement, the
Optionholder may satisfy any tax withholding obligation arising under the laws or regulations of
any country, state or local jurisdiction relating to the exercise or acquisition of Common Stock
under an Option by any of the following means (in addition to the Company’s right to withhold from
any compensation paid to the Optionholder by the Company) or by a combination of such means: (i)
tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the
shares of Common Stock otherwise issuable to the Optionholder as a result of the exercise or
acquisition of Common Stock under the Option; provided, however, that no shares of Common Stock are
withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such
lesser amount as may be required to avoid variable award accounting); or (iii) delivering to the
Company owned and unencumbered shares of Common Stock.

10. Adjustments upon Changes in Stock.

     (a) Capitalization Adjustments. If any change is made in the Common Stock subject to the
Plan, or subject to any Option, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend
in property other than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum
number of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of
securities subject to award to any person pursuant to subsection 5(d), and the outstanding Options
will be appropriately adjusted in the class(es) and number of securities and price per share of
Common Stock subject to such outstanding Options. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any convertible securities
of the Company shall not be treated as a transaction “without receipt of consideration” by the
Company.)

     (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company,
then all outstanding Options shall terminate immediately prior to such event.

     (c) Corporate Transaction. In the event of (i) a sale, lease or other disposition of all or
substantially all of the assets of the Company, (ii) a merger or consolidation in which the Company
is not the surviving corporation, or (iii) a reverse merger in which the Company is the surviving
corporation but the shares of Common Stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of securities, cash or
otherwise, then any surviving corporation or acquiring corporation shall assume or continue any
Options outstanding under the Plan or shall substitute similar stock awards (including an award to
acquire the same consideration paid to the stockholders in the transaction described in this
subsection 10(c)) for those outstanding under the Plan. In the event any surviving corporation or
acquiring corporation refuses to assume or continue such Options or to substitute similar stock
awards for those outstanding under the Plan, then with respect to Options held by Optionholders
whose Continuous Service has not terminated, the vesting of such Options (and, if applicable, the
time during which such Options may be exercised) shall be accelerated in full, and the Options
shall terminate if not exercised (if applicable) at or prior to such event.

 

 

With respect to any other Options outstanding under the Plan, such Options shall terminate if
not exercised (if applicable) at or prior to such event.

11. Amendment of the Plan and Options.

     (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 10 relating to adjustments upon changes in Common Stock, no
amendment shall be effective unless approved by the stockholders of the Company to the extent
stockholder approval is necessary under applicable laws or regulations or to the extent that such
amendment constitutes a material amendment of the Plan.

     (b) Stockholder Approval. The Board may, in its sole discretion, submit any other amendment
to the Plan for stockholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder
regarding the exclusion of performance-based compensation from the limit on corporate deductibility
of compensation paid to certain executive officers. Notwithstanding any other provision of the Plan
to the contrary, the Board shall not, without prior stockholder approval, (A) reduce the exercise
price of any outstanding Option under the Plan, (B) cancel any outstanding Option under the Plan
and grant in substitution therefor, on either an immediate or delayed basis, a new Option under the
Plan covering the same or a different number of shares of Common Stock or cash, or (C) take any
other action with respect to any outstanding Option under the Plan that is treated as a repricing
of such Option pursuant to generally accepted accounting principles.

     (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible Employees with the
maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

     (d) No Impairment of Rights. Rights under any Option granted before amendment of the Plan
shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of
the Optionholder and (ii) the Optionholder consents in writing.

     (e) Amendment of Options. The Board at any time, and from time to time, may amend the terms
of any one or more Options; provided, however, that the rights under any Option shall not be
impaired by any such amendment unless (i) the Company requests the consent of the Optionholder and
(ii) the Optionholder consents in writing.

12. Termination or Suspension of the Plan.

     (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the
Plan is adopted by the Board or approved by the stockholders of the Company, whichever is earlier.
No Options may be granted under the Plan while the Plan is suspended or after it is terminated.

     (b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights
and obligations under any Option granted while the Plan is in effect except with the written
consent of the Optionholder.

13. Effective Date of Plan.

     The Plan shall become effective as determined by the Board, but no Option shall be exercised
unless and until the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

14. Choice of Law.

     The law of the State of Delaware shall govern all questions concerning the construction,
validity and interpretation of this Plan, without regard to such state’s conflict of laws rules.<PAGE>

                                                                    EXHIBIT 10.1

                           FORM OF ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (this "AGREEMENT"), dated as of ___________ ____,
2006 and effective as of the date the Registration Statement (as defined below)
is declared effective by the Securities and Exchange Commission (the "EFFECTIVE
DATE"), is by and among NNN HEALTHCARE/OFFICE REIT, INC., a Maryland corporation
(the "COMPANY"), NNN HEALTHCARE/OFFICE REIT HOLDINGS, L.P., a Delaware limited
partnership (the "PARTNERSHIP"), NNN HEALTHCARE/OFFICE REIT ADVISOR, LLC, a
Delaware limited liability company and, solely for purposes of Section 32 of
this Agreement, TRIPLE NET PROPERTIES, LLC, a Virginia limited liability company
("TRIPLE NET").

                                   WITNESSETH

     WHEREAS, the Company is filing with the Securities and Exchange Commission
a Registration Statement on Form S-11 (the "REGISTRATION STATEMENT") covering
the initial public offering of its common stock, par value $0.01 per share (the
"SHARES");

     WHEREAS, the Company intends to qualify as a REIT (as defined below), and
intends to invest its funds in investments permitted by the terms of the
Company's Articles of Incorporation and Sections 856 through 860 of the Code (as
defined below);

     WHEREAS, the Company is the general partner of the Partnership and intends
to conduct all of its business and make all of its investments in Properties and
Real Estate Related Securities through the Partnership;

     WHEREAS, the Company and the Partnership desire to avail themselves of the
experience, sources of information, advice, assistance and certain facilities
available to the Advisor (as defined below) and to have the Advisor undertake
the duties and responsibilities hereinafter set forth, on behalf of, and subject
to the supervision of, the Board of Directors of the Company all as provided
herein; and

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

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

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

     ACQUISITION EXPENSES. Any and all expenses incurred by the Company, the
Partnership, the Advisor, or any Affiliate of either in connection with the
selection, evaluation, acquisition and development of, and investment in
Properties, whether or not acquired or made, including, but not limited to,
legal fees and expenses, travel and communications expenses, cost of appraisals
and surveys, nonrefundable option payments on property not acquired, accounting
fees and expenses, computer use related expenses, architectural, engineering and
other property reports, environmental and asbestos audits, title insurance and
escrow fees, loan fees or points or any fee of a similar nature paid to a third
party, however designated, transfer taxes, and personnel and miscellaneous
expenses related to the selection, evaluation and acquisition of properties.

<PAGE>

     ADVISOR. NNN Healthcare/Office REIT Advisor, LLC, a Delaware limited
liability company, any successor advisor to the Company and the Partnership to
which NNN Healthcare/Office REIT Advisor, LLC or any successor advisor
subcontracts substantially all of its functions.

     AFFILIATE OR AFFILIATED. An Affiliate of another Person includes only the
following: (i) any Person directly or indirectly owning, controlling, or holding
with the power to vote ten percent (10%) or more of the outstanding voting
securities of such other Person; (ii) any Person ten percent (10%) or more of
whose outstanding voting securities are directly or indirectly owned,
controlled, or held, with power to vote, by such other Person; (iii) any Person
directly or indirectly controlling, controlled by, or under common control with
such other Person; (iv) any executive officer, director, trustee, or general
partner of such other Person; and (v) any legal entity for which such Person
acts as an executive officer, director, trustee, or general partner. An entity
shall not be deemed to control or be under common control with an
Advisor-sponsored program unless (i) the entity owns ten percent (10%) or more
of the voting equity interests of such program or (ii) a majority of the board
of directors (or equivalent governing body) of such program is comprised of
Affiliates of the entity.

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

     ARTICLES OF INCORPORATION. The Articles of Incorporation of the Company
under Title 2 of the Corporations and Associations Article of the Annotated Code
of Maryland dated as of April 20, 2006, as amended from time to time.

     ASSET MANAGEMENT FEE. The Asset Management Fee payable to the Advisor as
defined in Section 8(b).

     AVERAGE INVESTED ASSETS. For a specified period, the average of the
aggregate Book Value of the assets of the Company invested, directly or
indirectly, in Real Estate Related Securities or Properties, before reserves for
depreciation, 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.

     BOARD OF DIRECTORS OR BOARD. The persons holding such office, as of any
particular time, under the Articles of Incorporation of the Company, whether
they be the Directors named therein or additional or successor Directors.

     BOOK VALUE. The value of an asset on the books of the Company, before
allowance for depreciation or amortization.

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

     CAPPED O&O EXPENSES. All Organizational and Offering Expenses other than
selling commissions, the marketing support fee and the due diligence
reimbursement as described under "Plan of Distribution" to the Registration
Statement.

     CAUSE. With respect to the termination of this Agreement, fraud, criminal
conduct, willful misconduct or willful or grossly negligent breach of fiduciary
duty by the Advisor, or a material breach of this Agreement by the Advisor,
provided that (i) the Advisor does not cure any such material breach within
thirty (30) days of receiving notice of such material breach from the Company or
the Partnership, or (ii) such material breach is not of a nature that can be
remedied within such period.

     CODE. Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean
such provision as in effect from time to time,

                                      -2-

<PAGE>

as the same may be amended, and any successor provision thereto, as interpreted
by any applicable regulations as in effect from time to time.

     COMPANY. NNN Healthcare/Office REIT, Inc., a corporation organized under
the laws of the State of Maryland.

     COMPETITIVE REAL ESTATE COMMISSION. A real estate or brokerage commission
for the purchase or sale of a property which is reasonable, customary, and
competitive in light of the size, type, and location of the property.

     CONTRACT PURCHASE PRICE. The amount actually paid or allocated in respect
of the purchase, development, construction or improvement of a Property, in each
case exclusive of Real Estate Commissions and Acquisition Expenses.

     CONTRACT SALES PRICE. The total consideration received by the Company for
the sale of a Property exclusive of the applicable Disposition Fee.

     DIRECTOR. A member of the Board of Directors of the Company.

     DISPOSITION FEE. The fee payable to the Advisor under certain circumstances
in connection with the Sale of one or more Properties pursuant to Section 8(c).

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

     FISCAL YEAR. Any period for which any income tax return is submitted by the
Company to the Internal Revenue Service and which is treated by the Internal
Revenue Service as a reporting period.

     GOOD REASON. With respect to the termination of this Agreement, (i) any
failure to obtain a satisfactory agreement from any successor to the Company and
the Partnership to assume and agree to perform the Company's and the
Partnership's obligations under this Agreement; or (ii) any material breach of
this Agreement by the Company, provided that (x) the Company does not cure such
material breach within thirty (30) days of receiving notice of such material
breach from the Advisor, or (y) such material breach is not of a nature that can
be remedied within such period.

     GROSS INCOME. All cash receipts derived from the operation of any Property,
excluding (i) tenant security deposits unless and until such deposits are
forfeited upon a tenant default and (ii) proceeds from insurance claims,
condemnation proceedings, sales or refinancings.

     GROSS OFFERING PROCEEDS. The aggregate purchase price of all Shares sold
for the account of the Company through an Offering, without deduction for volume
discounts or Organizational and Offering Expenses. For the purpose of computing
Gross Offering Proceeds, the purchase price of any Share for which reduced
selling commissions are paid to the dealer manager or a soliciting dealer (where
net proceeds to the Company are not reduced) shall be deemed to be the full
amount of the offering price per Share pursuant to the prospectus for such
Offering without reduction.

     INDEPENDENT APPRAISER. A person or entity with no material current or prior
business or personal relationship with the Advisor or the Directors, who is
engaged to a substantial extent in the business of

                                      -3-

<PAGE>

rendering opinions regarding the value of assets of the type held by the
Company, 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. A Director who is not and within the last two years
has not been directly or indirectly associated with the Advisor by virtue of (i)
ownership of an interest in the Advisor or its Affiliates, (ii) employment by
the Advisor or its Affiliates, (iii) service as an officer or director of the
Advisor or its Affiliates, (iv) performance of services, other than as a
Director, for the Company, (v) service as a director or trustee of more than
three REITs advised by the Advisor, or (vi) maintenance of a material business
or professional relationship with the Advisor or any of its Affiliates. A
business or professional relationship is considered material if the gross income
derived by the Director from the Advisor and Affiliates (excluding fees for
serving as a director of the Company or other REIT or real estate programs
organized or advised by the Advisor or its Affiliates) exceeds five percent (5%)
of either the Director's annual gross income during either of the last two years
or the Director's net worth on a fair market value basis. An indirect
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 is or has been associated with the Advisor, any of
its Affiliates, or the Company.

     JOINT VENTURE. Any joint venture, partnership, limited liability company or
other Affiliate of the Company (other than the Partnership) that owns, in whole
or in part on behalf of the Company, any Properties.

     LEASE-UP FEE. The Lease-Up Fee payable to the Advisor, an Affiliate of the
Advisor or a non-affiliated third party as the Property Manager as defined in
Section 8(d).

     LISTING. The term "LISTING" shall mean that the Shares have been approved
for trading on a national securities exchange. Upon such Listing, the Shares
shall be deemed Listed.

     NASAA GUIDELINES. The NASAA Statement of Policy Regarding Real Estate
Investment Trusts as in effect on the date hereof.

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

     OFFERING. Any offering of Shares that is registered with the SEC, excluding
Shares offered under any employee benefit plan.

     OFFERING STAGE. The period from the commencement of the Company's initial
public equity offering through the termination of the Company's last public
equity offering prior to Listing. For purposes of this definition, "public
equity offering" does not include offerings on behalf of selling stockholders or
offerings related to a distribution reinvestment plan, employee benefit plan or
the redemption of interests in the Partnership.

     OPERATING EXPENSES. All costs and expenses incurred by the Company, as
determined under generally accepted accounting principles, which in any way are
related to the operation of the Company or to Company business, including fees
paid to the Advisor, but excluding (i) the expenses of raising capital such as
Organizational and Offering Expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such
expenses and tax incurred in connection with

                                      -4-

<PAGE>

the issuance, distribution, transfer, registration and Listing of the Shares,
(ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as
depreciation, amortization and bad loan reserves, (v) incentive fees paid in
compliance with Section IV.F of the NASAA Guidelines and (vi) Real Estate
Commissions and Acquisition Expenses, real estate commissions on resale of
property, and other expenses connected with the acquisition, disposition, 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).

     ORGANIZATIONAL AND OFFERING EXPENSES. Any and all costs and expenses,
including selling commissions, the marketing support fee and the due diligence
expense reimbursement, incurred by the Advisor or any Affiliate in connection
with the formation, qualification and registration of the Company and the
marketing and distribution of the Shares, including, without limitation, the
following: total underwriting and brokerage discounts and commissions (including
fees of the underwriter's attorneys); printing, engraving, mailing and
distributing costs; salaries of employees while engaged in sales activity;
telephone and other telecommunications costs; all advertising and marketing
expenses (including the costs related to investor and broker-dealer sales
meetings); charges of transfer agents, registrars, trustees, escrow holders,
depositories and experts; and fees, expenses and taxes related to the filing,
registration and qualification of the sale of the Shares under federal and state
laws, including accountants' and attorneys' fees.

     PARTNERSHIP. NNN Healthcare/Office REIT Holdings, L.P., a Delaware limited
partnership formed to own and operate properties on behalf of the Company.

     PARTNERSHIP AGREEMENT. The Agreement of Limited Partnership of the
Partnership, as amended from time to time, between the Company, as General
Partner and the Advisor, as the initial Limited Partner.

     PERSON. An individual, corporation, partnership, estate, trust (including a
trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a
trust permanently set aside for or to be used exclusively for the purposes
described in Section 642(c) of the Code, association, private foundation within
the meaning of Section 509(a) of the Code, joint stock company or other entity,
or any government or any agency or political subdivision thereof, and also
includes a group as that term is used for purposes of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended.

     PROPERTY OR PROPERTIES. Any land, rights in land (including leasehold
interests), and any buildings, structures, improvements, furnishings, fixtures
and equipment located on or used in connection with land and rights or interests
in land, or any portion thereof, transferred or conveyed to the Company or the
Partnership, either directly or indirectly, or such investments the Board of
Directors and the Advisor mutually designate as Properties to the extent such
investments could be classified as either Properties or Real Estate Related
Securities.

     PROPERTY MANAGEMENT FEE. The Property Management Fee payable to the
Advisor, an Affiliate of the Advisor or a no-affiliated third party as the
Property Manager as defined in Section 8(d).

     PROPERTY MANAGER. Any entity that has been retained to perform and carry
out property rental, leasing, operation and management services at one or more
of the Properties, excluding persons, entities or independent contractors
retained or hired to perform facility management or other services or tasks at a
particular Property.

     REIT. A real estate investment trust under Sections 856 through 860 of the
Code.

                                      -5-

<PAGE>

     REAL ESTATE COMMISSION. The Real Estate Commission payable to the Advisor
as defined in Section 8(a).

     REAL ESTATE RELATED SECURITIES. Any real estate related securities
investments transferred or conveyed to the Company or the Partnership, either
directly or indirectly, or such investments the Board of Directors and the
Advisor mutually designate as Real Estate Related Securities to the extent such
investments could be classified as either Real Estate Related Securities or
Properties.

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

     STOCKHOLDERS. The registered holders of the Shares.

     TERMINATION DATE. The date of termination of this Agreement.

     TERMINATION EVENT. The termination or nonrenewal of this Agreement (i) in
connection with a merger, sale of assets or other corporate transaction
involving the Company, (ii) by the Advisor for Good Reason or (iii) by the
Company and the Partnership other than for Cause.

     TOTAL DEVELOPMENT COST. With regard to any Property acquired by the Company
prior to or during the development or acquisition stages, all costs and expenses
paid or incurred by the Company that are in any way related to the development
of such Property, including, but not limited to, land and construction costs.

     TRIPLE NET. Triple Net Properties, LLC, a Virginia limited liability
company.

     2%/25% GUIDELINES. The requirement pursuant to the NASAA Guidelines that,
in any twelve (12)-month period, total Operating Expenses not exceed the greater
of two percent (2%) of the Company's Average Invested Assets during such twelve
(12)-month period or twenty-five percent (25%) of the Company's Net Income over
the same twelve (12)-month period.

                                      -6-

<PAGE>

     2. APPOINTMENT. The Company and the Partnership appoints the Advisor to
serve as its advisor and asset manager as of the Effective Date, on the terms
and conditions set forth in this Agreement, and the Advisor accepts such
appointment as of the Effective Date.

     3. DUTIES AND AUTHORITY OF THE ADVISOR. The Advisor undertakes to use its
reasonable efforts (1) to present to the Company and the Partnership potential
investment opportunities in order to provide a continuing and suitable
investment program consistent with the investment objectives and policies of the
Company as determined and adopted from time to time by the Board and (2) to
manage, administer, promote, maintain, and improve the Properties 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 may also engage a Property Manager, which may
include Affiliates of the Advisor, to manage, promote, and lease the Properties.
To facilitate the Advisor's performance of these undertakings, but subject to
the restrictions included in Sections 4 and 7 and to the continuing and
exclusive authority of the Board and the general partner of the Partnership, the
Company and the Partnership hereby delegate to the Advisor the authority to, and
the Advisor hereby agrees to, either directly or by engaging an Affiliate:

     (A) serve as the Company's and the Partnership's investment and financial
advisor and, as requested by the Board, provide research and economic and
statistical data in connection with the Company's assets and investment
policies;

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

     (C) maintain and preserve the books and records of the Company, including
(i) a stock ledger reflecting a record of the Stockholders and their ownership
of the Company's Shares, (ii) acting as transfer agent for the Company's Shares
or selecting, engaging and overseeing the performance by a third party transfer
agent, and (iii) maintaining the accounting and other record-keeping functions
at the Property and Company levels;

     (D) investigate, select, and, on behalf of the Company and the Partnership,
engage and conduct business with such Persons as the Advisor deems necessary to
the proper performance of its obligations hereunder, including but not limited
to consultants, accountants, correspondents, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents,
banks, builders, developers, property owners, real estate management companies,
real estate operating companies, securities investment advisors, 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
and the Partnership with any of the foregoing;

     (E) make investments in and dispositions of Real Estate Related Securities
within the discretionary limits and authority as granted by the Board and in
accordance with the Articles of Incorporation;

     (F) consult with the officers of the Company and the Board and assist the
Board in the formulation and implementation of the Company's financial policies,
and, as necessary, furnish the Board with advice and recommendations with
respect to the making of investments consistent with the

                                      -7-

<PAGE>

investment objectives and policies of the Company and in connection with any
borrowings proposed to be undertaken by the Company and the Partnership;

     (G) select joint venture partners, structure corresponding agreements and
oversee and monitor these relationships;

     (H) recommend to the Board of Directors appropriate transactions which
would provide liquidity to the Stockholders;

     (I) oversee the performance by a third party or affiliated Property Manager
of its duties, including collection of payments due from third parties under
contracts related to use of any Property and other assets of the Company and
payment of Property expenses and maintenance;

     (J) conduct periodic on-site visits to some or all (as the Advisor deems
reasonably necessary) of the Properties to inspect the physical condition of the
Properties and to evaluate the performance of a third party or affiliated
Property Manager of its duties;

     (K) review, analyze and comment upon the operating budgets, capital budgets
and leasing plans prepared and submitted by a third party or affiliated Property
Manager and aggregate these property budgets into the Company's overall budget;

     (L) review and analyze on-going financial information pertaining to each
Property, each Real Estate Related Security and the overall portfolio of
Properties and Real Estate Related Securities;

     (M) if a transaction requires approval by the Board of Directors, deliver
to the Board of Directors all documents requested by them in their evaluation of
the proposed investment in the Property or the Real Estate Related Security;

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

     (O) subject to the provisions of Sections 3(m) and 4 hereof, (i) locate,
analyze and select potential investments in Properties, (ii) structure and
negotiate the terms and conditions of transactions pursuant to which investment
in Properties will be made; (iii) make investments in Properties on behalf of
the Company or the Partnership in compliance with the investment objectives and
policies of the Company; (iv) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the
proceeds from the sale of, or otherwise deal with the investments in, Property;
(v) enter into leases, supply agreements and other income-producing contracts
relating to third party use of any Property and other assets of the Company;
(vi) enter into service contracts for any Property, including oversight of
Affiliated companies that perform property management services for the Company
and the Partnership; (vii) if applicable, oversee a non-affiliated Property
Manager and any other non-affiliated Persons who perform services for the
Company; and (viii) to the extent necessary, perform all other operational
functions for the maintenance and administration of such Property;

     (P) obtain the prior approval of the Board, any particular Directors
specified by the Board or any committee of the Board, as the case may be, for
any and all investments in Properties;

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

                                      -8-

<PAGE>

for the Company and the Partnership, but in no event in such a way so that the
Advisor shall be acting as broker-dealer or underwriter; provided, further, that
any fees and costs payable to third parties incurred by the Advisor in
connection with the foregoing shall be the responsibility of the Company or the
Partnership;

     (R) on behalf of the Company and the Partnership, maintain, with respect to
any Property and to the extent available, title insurance or other assurance of
title and customary fire, casualty and public liability insurance;

     (S) obtain reports (which may be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of investments or
contemplated investments of the Company and the Partnership in Properties or
Real Estate Related Securities;

     (T) 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 and the Partnership under this Agreement;

     (U) from time to time, or at any time reasonably requested by the Board,
make reports to the Board of the investment opportunities it has presented to
other Advisor-sponsored programs or that it has pursued directly or through an
Affiliate;

     (V) provide the Company and the Partnership with all necessary cash
management services;

     (W) deliver to or maintain on behalf of the Company copies of all
appraisals obtained in connection with the investments in Properties and all
valuations of Real Estate Related Securities as may be required to be obtained
by the Board;

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

     (Y) at the direction of Company management, prepare the Company's periodic
reports and other filings made under the Securities Exchange Act of 1934, as
amended, and the Company's Post-Effective Amendments to the Registration
Statement as well as all related prospectuses, prospectus supplements and
supplemental sales literature and assist in connection with the filing of such
documents with the appropriate regulatory authorities;

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

     (AA) effect any private placements of Shares or other interests in
Properties as may be approved by the Board;

     (BB) establish and maintain bank accounts on behalf of the Company and the
Partnership pursuant to Section 5 of this Agreement;

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

     (DD) do all things it reasonably deems necessary to assure its ability to
render the services described in this Agreement.

                                      -9-

<PAGE>

     4. 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 Section 3; 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 and the Partnership prior to the date of receipt by the
Advisor of such notification.

     5. BANK ACCOUNTS. At the direction of the Board of Directors, the Advisor
may establish and maintain one or more bank accounts in its own name for the
account of the Company and the Partnership or in the name of the Company and the
Partnership and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company
and the Partnership, 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 shall at all
reasonable times have access to the books and records of the Company and the
Partnership.

     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, or (c) violate any law, rule,
regulation or statement of policy of any governmental body or agency having
jurisdiction over the Company or the Partnership, its Shares or its other
securities, or otherwise not be permitted by the Articles of Incorporation or
Bylaws of the Company, 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, the Partnership, the Board or to the Stockholders for any act or
omission by the Advisor, its directors, officers, employees or stockholders, or
stockholders, directors or officers of the Advisor's Affiliates taken or omitted
to be taken in the performance of their duties under this Agreement except as
provided in Sections 19 and 20 of this Agreement.

     8. FEES.

     (A) REAL ESTATE COMMISSION. The Advisor or its Affiliates shall receive as
compensation for services rendered in connection with the investigation,
selection and acquisition of Properties (by purchase, investment or exchange) a
real estate commission payable by the Company (the "REAL ESTATE COMMISSION").
The total Real Estate Commission paid to the Advisor or its Affiliates for
services provided by the Advisor, its Affiliates or sub-contractors thereof
shall not exceed (i) three percent (3%) of the Contract Purchase Price of a
Property acquired directly or indirectly by the Company, and (ii) four percent
(4%) of the Total Development Cost of Properties developed by or on behalf of
the Company. At the Advisor's discretion, a portion of the Real Estate
Commission may be paid to third-party developers for services rendered. Real
Estate Commissions shall be payable on the acquisition of a specific Property,
on the acquisition of a portfolio of Properties through a purchase of assets,
controlling securities or by joint venture, by a merger or similar business
combination or other comparable transaction, or on the

                                      -10-

<PAGE>

completion of development of a Property or Properties for the Company. However,
the total of all Real Estate Commissions and Acquisition Expenses payable with
respect to any Properties shall not exceed six percent (6%) of the Contract
Purchase Price or the Total Development Cost (as applicable) of such Properties
unless fees in excess of such amount are approved by a majority of the Board of
Directors, including a majority of the Independent Directors.

     (B) ASSET MANAGEMENT FEE. Subject to the overall limitations contained
below in this Section 8(b), commencing on the Effective Date, the Advisor shall
be paid a monthly fee for the services rendered in connection with the
management of the Company's assets (the "ASSET MANAGEMENT FEE") in an amount
equal to (i) for Properties, one-twelfth of one percent (1%) of the Average
Invested Assets calculated as of the close of business on the last day of each
preceding month and (ii) for Real Estate Related Securities, one-twelfth of one
percent (1%) of the value of the Real Estate Related Securities under the
Advisor's management calculated as of the close of business on the last day of
each preceding month; provided, however, that the Company's obligation to pay
the Asset Management Fee shall be subject to the Stockholders receiving
annualized Distributions in an amount equal to five percent (5%) per annum of
Invested Capital (as such term is defined in the Articles of Incorporation). The
Asset Management Fee shall be payable by the Company in cash or in Shares at the
election of the Advisor in whole or in part, from time to time, by the Advisor
(without interest); provided, however, that the Company may object to the
Advisor's election and refuse to pay the Advisor in Shares if such payment would
result in a conflict with any provision of the Articles of Incorporation. If the
Advisor elects to receive the Asset Management Fee in the form of Shares and
such election does not conflict with any provision of the Articles of
Incorporation, then the Shares shall be valued at a price per share equal to the
average closing price of the Shares over the ten trading days immediately
preceding the date of such election if the Shares are Listed at such time. If
the Shares are not Listed and the Company is still in its Offering Stage at such
time, the Advisor will estimate the per share value of the Shares at a price per
share equal the most recent price paid to acquire a Share (excluding any Shares
sold at purchase price discounts for certain categories of purchasers). If the
Shares are not Listed and the Offering Stage has been completed for twelve (12)
months at such time, the Shares shall be valued at a price per share equal the
published annual estimated value of the shares as determined by the Advisor
based upon the Appraised Value of the Properties on the date of election.

     (C) DISPOSITION FEE. If the Advisor or an Affiliate of the Advisor provides
a substantial amount of the services (as determined by a majority of the
Independent Directors) in connection with the Sale of one or more Properties,
the Advisor or such Affiliate shall receive at closing a disposition fee equal
to the lessor of (i) three percent (3%) of the Contract Sales Price of such
Property or Properties, or (ii) fifty percent (50%) of a Competitive Real Estate
Commission given the circumstances surrounding the sale (the "DISPOSITION FEE").
In each case in which a Disposition Fee may be payable, the precise amount of
the fee within the limits set forth in the preceding sentence shall be
determined by the Board, including a majority of the Independent Directors,
based upon the extent of the services provided by the Advisor or its Affiliate
and market norms for the services provided. Notwithstanding anything to the
contrary herein, no Disposition Fee shall be payable to the Advisor or its
Affiliate for Property Sales if such Sales involve the Company selling all or
substantially all of its Properties in one or more transactions designed to
effectuate a business combination transaction (as opposed to a Company
liquidation, in which case the Disposition Fee would be payable if the Advisor
or an Affiliate provides a substantial amount of services as provided above).
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 Property shall not exceed an amount equal to the lesser of (i) six
percent (6%) of the Contract Sales Price of the Property or (ii) the Competitive
Real Estate Commission for the Property.

     (D) PROPERTY MANAGEMENT FEE; LEASE-UP FEE. Either the Advisor, an Affiliate
of the Advisor or a non-affiliated third party as the Property Manager shall
receive a monthly property management fee equal to four percent (4%) of the
monthly Gross Income from each Property managed by such Property Manager (the
"PROPERTY MANAGEMENT FEE"). In addition, the Advisor, an Affiliate of the

                                      -11-

<PAGE>

Advisor or a non-affiliated third party as the Property Manager may receive a
separate fee for the one-time initial lease-up of newly constructed real
properties in an amount not to exceed the fee customarily charged in arm's
length transactions by others rendering similar services in the same geographic
area for similar properties, as determined by a survey of brokers and agents in
such area (the "LEASE-UP FEE"). The Lease-Up Fee is generally expected to range
from two percent (2%) to eight percent (8%) of the projected first years' annual
gross revenues of a property. However, the actual percentage is variable and
will depend on factors such as geographic location and real property type (i.e.
commercial office or medical office). In addition to the above Property
Management Fee and Lease-Up Fee, for each Property managed directly by a
non-affiliated Property Manager but where an Affiliate of the Advisor has
oversight responsibility over such non-affiliated Property Manager, the Company
will pay such Affiliate of the Advisor a monthly oversight fee of up to one
percent (1%) of the Gross Income from the Property.

     (E) CHANGES TO FEE STRUCTURE. In the event of a Listing, the Company and
the Advisor shall negotiate in good faith to establish a fee structure
appropriate for a perpetual-life entity.

     9. EXPENSES.

     (A) REIMBURSABLE EXPENSES. In addition to the compensation paid to the
Advisor pursuant to Section 8 hereof, the Company or the Partnership 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 dealer
manager) in connection with the services it provides to the Company and the
Partnership pursuant to this Agreement, including, but not limited to:

          (i) the Organizational and Offering Expenses; provided, however, that
within sixty (60) days after the end of the month in which an Offering
terminates, the Advisor shall reimburse the Company to the extent (i) Capped O&O
Expenses borne by the Company exceed the maximum amount permitted pursuant to
the prospectus for the Offering and (ii) Organizational and Offering Expenses
borne by the Company exceed fifteen percent (15%) of the Gross Offering Proceeds
raised in a completed Offering;

          (ii) Real Estate Commissions and Acquisition Expenses incurred in
connection with the selection and acquisition of Properties, subject to the
aggregate six percent (6%) cap on Real Estate Commissions and Acquisition
Expenses set forth in Section 8(a) above;

          (iii) the actual cost of goods and services used by the Company and
obtained from entities not affiliated with the Advisor, other than Acquisition
Expenses, including brokerage fees paid in connection with the purchase and sale
of Real Estate Related Securities;

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

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

                                      -12-

<PAGE>

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

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

          (viii) all compensation and expenses payable to the Independent
Directors and all expenses payable to the non-Independent Directors in
connection with their services to the Company and the Stockholders and their
attendance at meetings of the Directors and the Stockholders;

          (ix) expenses associated with Listing or with the issuance and
distribution of securities other than the Shares, such as selling commissions
and fees, advertising expenses, taxes, legal and accounting fees, listing and
registration fees;

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

          (xi) expenses of organizing, redomesticating, merging, liquidating or
dissolving the Company or of amending the Articles of Incorporation or the
Bylaws;

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

          (xiii) administrative service expenses (including (a) personnel costs;
provided, however, that no reimbursement shall be made for costs of personnel to
the extent that such personnel perform services in transactions for which the
Advisor receives a separate fee, and (b) the Company's allocable share of other
overhead of the Advisor such as rent and utilities);

          (xiv) transfer agent and registrar's fees and charges paid to third
parties;

          (xv) expenses associated with the disposition of Properties,
including, subject to Section 8(c), real estate commissions;

          (xvi) audit, accounting, legal and other professional fees; and

          (xvii) all other costs and expenses in any way relating to the
operations of the Company or the Partnership or the business of the Company or
the Partnership (other than any fees payable to the Advisor or its Affiliates).

     (B) OTHER SERVICES. Should the Board request that the Advisor, any
Affiliate of the Advisor or any director, officer or employee thereof render
services for the Company and the Partnership other than set forth in Section 3,
such additional services, if the Advisor elects to perform them, shall be
separately compensated at such rates and in such amounts as are agreed by the
Advisor and the Board, including a majority of the Independent Directors,
subject to the limitations contained in the Articles of Incorporation, shall not
exceed an amount that would be paid to nonaffiliated third parties for similar
services, 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 the
Partnership and payable pursuant to this Section 9 shall be reimbursed no less
than monthly to the Advisor. The

                                      -13-

<PAGE>

Advisor shall prepare a statement documenting the expenses of the Company and
the Partnership during each quarter, and shall deliver such statement to the
Company and the Partnership within forty-five (45) days after the end of each
quarter.

          (ii) Notwithstanding anything else in this Section 9 to the contrary,
the expenses enumerated in this Section 9 shall not become reimbursable out of
the proceeds of an Offering to the Advisor unless and until the Company has
raised the minimum offering amount, if any, as provided in the prospectus for
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 2%/25%
Guidelines for such year unless a majority of the Independent Directors
determines that such excess was justified, based on unusual and nonrecurring
factors which a majority of the Independent Directors deems 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 determines
such excess was justified, then within sixty (60) days after the end of any
fiscal quarter of the Company for which total reimbursed Operating Expenses for
the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of
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
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 generally accepted
accounting principles applied on a consistent basis.

          (iv) The foregoing reimbursements of expenses, as limited by this
Agreement, will be made regardless of whether any cash distributions are made to
the Stockholders.

     10. STATEMENTS. The Advisor shall furnish to the Company not later than the
thirtieth (30th) day following the end of each Fiscal Year, a statement showing
a computation of the fees or other compensation payable to the Advisor or an
Affiliate of the Advisor with respect to such Fiscal Year under Sections 8 and 9
hereof. The final settlement of compensation payable under Sections 8 and 9
hereof for each Fiscal Year shall be subject to adjustments in accordance with,
and upon completion of, the annual audit of the Company's financial statements.

     11. INTERNALIZATION OF THE ADVISOR. In the event that the Company's assets
and income are, in the view of the Board of Directors, including a majority of
the Independent Directors, of sufficient size such that internalizing the
management functions by the Advisor and the Property Manager is in the best
interests of the Stockholders, the compensation payable to the Advisor upon such
internalization shall be agreed upon by the Independent Directors and the
Advisor.

     12. OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent
the Advisor from engaging in other activities, including, without limitation,
the rendering of advice to other Persons (including other REITs) and the
management of other programs advised, sponsored or organized by the Advisor or
its Affiliates; nor shall this Agreement limit or restrict the right of any
director, officer, employee, or stockholder of the Advisor or its Affiliates to
engage in any other business or to render services of any kind to any other
partnership, corporation, firm, individual, trust or association. The Advisor
may, with respect to any investment in which the Company or the Partnership is a
participant, also render advice and service to each and every other participant
therein. The Advisor shall report to the Board the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor's obligations to the
Company and

                                      -14-

<PAGE>

the Partnership and its obligations to or its interest in any other partnership,
corporation, firm, individual, trust or association.

     13. INFORMATION FURNISHED TO THE ADVISOR. The Board of Directors will keep
the Advisor informed concerning the investment and financing policies of the
Company. The Board of Directors shall notify the Advisor promptly of its
intention to make any investments or to sell or dispose of any existing
investments. Upon request of the Advisor, the Company shall furnish the Advisor
with a certified copy of any Company financial statements, a signed copy of each
report prepared by independent certified public accountants, and such other
information with regard to its affairs as the Advisor may reasonably request.

     14. RELATIONSHIP OF ADVISOR AND COMPANY. The Company, the Partnership 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.

     15. TERM; RENEWAL OF AGREEMENT. This Agreement shall continue in force
until the first anniversary of the Effective Date, 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.

     16. TERMINATION.

     (A) BY EITHER PARTY. This Agreement may be terminated upon sixty (60) days
written notice without cause or penalty, by either party (if by the Company,
only upon approval of a majority of the Independent Directors).

     (B) BY THE COMPANY. At the sole option of the Company, this Agreement shall
be terminated immediately, subject to the thirty (30)-day cure period for a "for
Cause" termination due to a material breach of this Agreement, upon written
notice of termination from the Board of Directors to the Advisor if any of the
following events occur:

          (i) For Cause;

          (ii) A court of competent jurisdiction enters a decree or order for
relief in respect of the Advisor in any involuntary case under the applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
similar official) of the Advisor or for any substantial part of its property or
orders the winding up or liquidation of the Advisor's affairs; or

          (iii) The Advisor commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consents to the entry of an order for relief in an involuntary case under any
such law, or consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Advisor or for any substantial part of its property, or makes any general
assignment for the benefit of creditors, or fails generally to pay its debts as
they become due.

     The Advisor agrees that if any of the events specified in subsections (ii)
or (iii) of this Section 16(b) occur, it will give written notice thereof to the
Company within seven (7) days after the occurrence of such event.

                                      -15-

<PAGE>

     (C) BY THE ADVISOR. At the sole option of the Advisor, this Agreement shall
be terminated immediately, subject to the thirty (30)-day cure period for a
"Good Reason" termination due to a material breach of this Agreement, upon
written notice of termination from the Advisor to the Company that the Advisor
has Good Reason to terminate this Agreement.

     (D) SURVIVAL. The provisions of Sections 18 through 31 shall survive
termination of this Agreement.

     17. ASSIGNMENT. This Agreement shall not be assigned by the Advisor to a
non-Affiliate. This Agreement may be assigned by the Advisor to an Affiliate
with the approval of the Board, including a majority of the Independent
Directors. Notwithstanding the foregoing, the Advisor may assign any rights to
receive fees or other payments under this Agreement without obtaining the
approval of the Board. This Agreement shall not be assigned by the Company or
the Partnership without the consent of the Advisor, except in the case of an
assignment by the Company or the Partnership to a corporation or other
organization which is a successor to all of the assets, rights and obligations
of the Company or the Partnership, as the case may be, in which case such
successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company and the Partnership is bound by
this Agreement.

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

     (A) After the Termination Date, the Advisor shall not be entitled to
compensation for further services hereunder except it shall be entitled to
receive from the Company within thirty (30) days after the effective date of
such termination all unpaid reimbursements of expenses and all earned but unpaid
fees payable to the Advisor prior to termination of this Agreement; and

     (B) The Advisor shall promptly upon termination:

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

          (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 Properties and Real
Estate Related Securities, and documents of the Company then in the custody of
the Advisor; and

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

     19. INDEMNIFICATION BY THE COMPANY.

     (A) 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 Articles of
Incorporation.

                                      -16-

<PAGE>

     (B) The Company may advance amounts to persons entitled to indemnification
hereunder for legal and other expenses and costs incurred as a result of any
legal action for which indemnification is being sought only if all of the
following conditions are satisfied: (i) the legal action relates to acts or
omissions with respect to the performance of duties or services by the
indemnified party for or on behalf of the Company; (ii) the legal action is
initiated by a third party and a court of competent jurisdiction specifically
approves such advancement; and (iii) the indemnified party receiving such
advances undertakes to repay the advanced funds to the Company, together with
the applicable legal rate of interest thereon, in which such party would not be
entitled to indemnification.

     (C) Notwithstanding the foregoing, the Advisor shall not be entitled to
indemnification or be held harmless pursuant to this Section 19 for any activity
which the Advisor shall be required to indemnify or hold harmless the Company
pursuant to Section 20. Any indemnification of the Advisor may be made only out
of the net assets of the Company and not from the Stockholders.

     20. INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold
harmless the Company from contract or other liability, claims, damages, taxes or
losses and related expenses, including attorneys' fees, to the extent that such
liability, claims, damages, taxes 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
the Advisor shall not be held responsible for any action of the Board in
following or declining to follow advice or recommendation given by the Advisor.

     21. FIDELITY BOND. The Advisor shall not be required to obtain or maintain
a fidelity bond in connection with the performance of its services hereunder.

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

To the Board and to the Company:   NNN Healthcare/Office REIT, Inc.
                                   Suite 200
                                   1551 N. Tustin Avenue
                                   Santa Ana, CA 92705
                                   Attention: Chief Executive Officer

To the Partnership:                NNN Healthcare/Office REIT Holdings, L.P.
                                   Suite 200
                                   1551 N. Tustin Avenue
                                   Santa Ana, CA 92705
                                   Attention: Chief Executive Officer of
                                              NNN Healthcare/Office REIT, Inc.,
                                              its General Partner

To the Advisor:                    NNN Healthcare/Office REIT Advisor, LLC
                                   Suite 200
                                   1551 N. Tustin Avenue
                                   Santa Ana, CA 92705
                                   Attention: Chief Executive Officer

     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 22.

                                      -17-

<PAGE>

     23. AMENDMENTS. This Agreement shall not be changed, modified, terminated,
or discharged, in whole or in part, except by an instrument in writing signed by
each of the parties hereto, or their respective successors or assignees.

     24. 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.

     25. CONSTRUCTION. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of Maryland.

     26. 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.

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

     28. 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.

     29. TITLES NOT TO AFFECT INTERPRETATION. The titles of sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

     30. 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.

     31. NAME. NNN Healthcare/Office REIT Advisor, LLC has a proprietary
interest in the name "NNN." Accordingly, and in recognition of this right, if at
any time the Company or the Partnership ceases to retain NNN Healthcare/Office
REIT Advisor, LLC or an Affiliate thereof to perform the services of the Advisor
under this Agreement, the Company or the Partnership, as the case may be, will,
promptly after receipt of written request from NNN Healthcare/Office REIT
Advisor, LLC, cease to conduct business under or use the name "NNN" or any
variation or derivative thereof and the Company and the Partnership shall each
use its best efforts to change their respective names (and the names of any of
their Affiliates) to a name that does not contain the name "NNN" or any other
word or words that might, in the sole discretion of the Advisor, be susceptible
of indication of some form of relationship between the Company and the Advisor
or any Affiliate thereof. Consistent with the foregoing, the parties acknowledge
and agree that the Advisor or one or more of its Affiliates has in the past and
may in the

                                      -18-

<PAGE>

future organize, sponsor or otherwise permit to exist other investment vehicles
(including vehicles for investment in real estate) and financial and service
organizations having "NNN" as a part of their name, all without the need for any
consent (and without the right to object thereto) by the Company or its Board.

     32. RIGHT OF FIRST REFUSAL. In the event that Triple Net identifies an
opportunity to make an investment in one or more office buildings or other
facilities for which greater than fifty percent (50%) of the gross rentable
space at such office buildings or other facilities is leased to, or is
reasonably expected to be leased to, one or more medical or healthcare-related
tenants, either directly or indirectly through an Affiliate or in a joint
venture or other co-ownership arrangement, for itself or for any other Triple
Net-sponsored or managed program, then Triple Net agrees that it shall provide
the Company with the first opportunity to purchase such investment and that it
shall provide all necessary information to the Advisor in order to enable the
Board of Directors to determine whether to proceed with such investment. The
Advisor shall present such information to the Board of Directors within three
(3) business days of receipt from Triple Net. In the event that the Board of
Directors does not affirmatively authorize the Advisor to proceed with the
investment on behalf of the Company within seven (7) days of receipt of such
information from the Advisor, then Triple Net may proceed with the investment
opportunity for its own account or offer the investment opportunity to any other
person or entity.

                        [SIGNATURES APPEAR ON NEXT PAGE]

                                      -19-

<PAGE>

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

                                       NNN HEALTHCARE/OFFICE REIT, INC.

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

                                       NNN HEALTHCARE/OFFICE REIT HOLDINGS, L.P.

                                       By: NNN Healthcare/Office REIT, Inc.,
                                           its General Partner

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

                                       NNN HEALTHCARE/OFFICE REIT ADVISOR, LLC

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

                                       TRIPLE NET PROPERTIES, LLC
                                       (solely for purposes of Section 32 of
                                       this Agreement)

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

                     [SIGNATURE PAGE TO ADVISORY AGREEMENT]

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