Document:

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                                                                   EXHIBIT 10.18

                                                                      LOAN 13719
                                                                  HOUSTON, TEXAS

                                LIMITED GUARANTY
                                     (BHLLC)

        THIS LIMITED GUARANTY ("GUARANTY") is made as of the 12TH DAY OF APRIL,
2004 by Guarantor (as hereinafter defined) for the benefit of State Farm (as
hereinafter defined).

        1.      DEFINITIONS. As used in this Guaranty, the following terms shall
have the meanings indicated below:

                (1)     The term "STATE FARM" shall mean STATE FARM LIFE
        INSURANCE COMPANY, an Illinois corporation, whose address for notice
        purposes is the following:

                        One State Farm Plaza
                        Bloomington, Illinois  61710
                        Attn: Corporate Law - Investments  E-3

                (2)     The term "BORROWER" shall mean the following:

                        BEHRINGER HARVARD ENCLAVE S LP
                                     and
                        BEHRINGER HARVARD ENCLAVE H LP

                (3)     The term "GUARANTEED INDEBTEDNESS" shall mean all Losses
        (as defined below) which are attributable to the acts or omissions of
        BEHRINGER HARVARD ENCLAVE S LP or BEHRINGER HARVARD ENCLAVE H LP (as
        defined below) incurred by State Farm arising from or related to:

                (a)     Any Rents received by any of the Exculpated Parties or
                        Liable Parties from tenants of the Premises and not
                        applied to the Indebtedness or the operating expenses of
                        the Premises in accordance with the Loan Documents,
                        either within one hundred eighty (180) days prior to
                        such Event of Default or any time after an Event of
                        Default;

                (b)     The misapplication or misappropriation of any tenant
                        security deposits, advance or prepaid rents,
                        cancellation or termination fees or other similar sums
                        paid to or held by Borrower, any affiliate of the
                        Borrower or any other person or entity (other than State
                        Farm) in connection with the operation of the Premises
                        in violation of the Loan Documents or any leases
                        affecting the Premises;

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                (c)     Any amount(s) necessary to repair or replace any damage
                        to or destruction of the Premises which is caused by any
                        willful or wanton act or omission on the part of any of
                        the Exculpated Parties or Liable Parties including,
                        without limitation, waste or any act of arson or
                        malicious destruction by any of the Exculpated Parties
                        or Liable Parties;

                (c)     The failure to maintain insurance as required by the
                        Loan Documents or any leases affecting the Premises or
                        the failure to timely pay insurance premiums, real
                        estate taxes, regular or special assessments or utility
                        charges affecting the Premises to the extent funds (plus
                        any distributions made to the Tenants-in-Common during
                        the period of such failure) are, or were, available from
                        the operation of the Premises;

                (d)     Any payments, dividends or distributions made by Maker
                        to any other Exculpated Party or other Liable Party in
                        violation of the terms of the Loan Documents either
                        within one hundred eighty (180) days prior to such Event
                        of Default or any time after such Event of Default;

                (e)     Transfers of any interest in the Premises in violation
                        of SECTION 3.11 of the Deed of Trust and Security
                        Agreement;

                (f)     Any insurance proceeds or condemnation awards received
                        by any of the Exculpated Parties or Liable Parties and
                        not delivered over to State Farm or used for Restoration
                        of the Premises in accordance with the terms of the Loan
                        Documents;

                (g)     Any fraud or willful misrepresentation of a material
                        fact by any of the Exculpated Parties or Liable Parties
                        in any document executed or presented to State Farm in
                        connection with the Loan; or

                (h)     Any use, generation, storage, release, threatened
                        release, discharge, disposal, or presence on, under, or
                        about the Premises of any materials, substances or
                        wastes defined or classified as hazardous or toxic under
                        applicable Federal, State or local laws or regulations
                        or arising out of or from any failure on the part of any
                        of the Exculpated Parties or Liable Parties to comply
                        with the provisions of the Environmental Indemnification
                        Agreement.

                (4)     As used herein, the term "LOSSES" means any and all
        claims, suits, liabilities (including, without limitation, strict
        liabilities), actions, proceedings, obligations, debts, damages
        (including, without limitation, offsets and abatements of Rent), costs,
        fines, penalties, charges, fees, expenses (including, without
        limitation, legal fees and expenses and other costs of defense and
        internal administrative fees assessed by State Farm), judgments, awards,
        amounts paid in settlement of whatever kind or nature.

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                (5)     The term "GUARANTOR" shall mean BEHRINGER HARVARD
        HOLDINGS, LLC, a Texas limited liability company.

                (6)     The term "LOAN DOCUMENTS" shall mean all documents
        representing, evidencing and/or securing the loan in the amount of
        $20,000,000.00 from State Farm to Borrower.

                (7)     The term "PREMISES" shall have the meaning contained in
        that certain "DEED OF TRUST AND SECURITY AGREEMENT" executed by Borrower
        for the benefit of State Farm dated of even date herewith.

        2.      OBLIGATIONS. As an inducement to State Farm to extend or
continue to extend credit and other financial accommodations to Borrower,
Guarantor, for value received, does hereby unconditionally and absolutely
guarantee the prompt and full payment and performance of the Guaranteed
Indebtedness when due or declared to be due and at all times thereafter.

        3.      CHARACTER OF OBLIGATIONS.

                (1)     This is an absolute, continuing and unconditional
        guaranty of payment and not of collection and if at any time or from
        time to time there is no outstanding Guaranteed Indebtedness, the
        obligations of Guarantor with respect to any and all Guaranteed
        Indebtedness incurred thereafter shall not be affected. This Guaranty
        and the Guarantor's obligations hereunder are irrevocable and, in the
        event of Guarantor's death, shall be binding upon Guarantor's estate
        pursuant to PARAGRAPH 10 herein. All of the Guaranteed Indebtedness
        shall be conclusively presumed to have been made or acquired in
        acceptance hereof. GUARANTOR SHALL BE LIABLE, JOINTLY AND SEVERALLY,
        WITH BORROWER AND ANY OTHER GUARANTOR OF ALL OR ANY PART OF THE
        GUARANTEED INDEBTEDNESS.

                (2)     State Farm may, at its sole discretion and without
        impairing its rights hereunder, (I) apply any payments on the Guaranteed
        Indebtedness that State Farm receives from Borrower or any other source
        other than Guarantor to that portion of the Guaranteed Indebtedness, if
        any, not guaranteed hereunder and (II) apply any proceeds it receives as
        a result of the foreclosure or other realization on any collateral for
        the Guaranteed Indebtedness to that portion, if any, of the Guaranteed
        Indebtedness not guaranteed hereunder or to any other indebtedness
        secured by such collateral.

                (3)     Guarantor agrees that its obligations hereunder shall
        not be released, diminished, impaired, reduced or affected by the
        existence of any other guaranty or the payment by any other guarantor of
        all or any part of the Guaranteed Indebtedness and Guarantor's
        obligations hereunder shall continue until State Farm has received
        payment in full of the Guaranteed Indebtedness.

                (4)     Guarantor's obligations hereunder shall not be released,
        diminished, impaired, reduced or affected by, nor shall any provision
        contained herein be deemed to be a limitation upon, the amount of credit
        which State Farm may extend to Borrower, the

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        number of transactions between State Farm and Borrower, payments by
        Borrower to State Farm or State Farm's allocation of payments by
        Borrower.

        4.      REPRESENTATIONS AND WARRANTIES. Guarantor hereby represents and
warrants the following to State Farm:

                (1)     This Guaranty directly and substantially benefits
        Guarantor, and the Manager of Guarantor has determined that this
        Guaranty directly and substantially benefits Guarantor; and

                (2)     Guarantor is familiar with, and has independently
        reviewed the books and records regarding, the financial condition of
        Borrower and is familiar with the value of any and all collateral
        intended to be security for the payment of all or any part of the
        Guaranteed Indebtedness; provided, however, Guarantor is not relying on
        such financial condition or collateral as an inducement to enter into
        this Guaranty; and

                (3)     Guarantor has adequate means to obtain from Borrower on
        a continuing basis information concerning the financial condition of
        Borrower and Guarantor is not relying on State Farm to provide such
        information to Guarantor either now or in the future; and

                (4)     Guarantor has the power and authority to execute,
        deliver and perform this Guaranty and any other agreements executed by
        Guarantor contemporaneously herewith, and the execution, delivery and
        performance of this Guaranty and any other agreements executed by
        Guarantor contemporaneously herewith do not and will not violate (i) any
        agreement or instrument to which Guarantor is a party, (ii) any law,
        rule, regulation or order of any governmental authority to which
        Guarantor is subject, or (iii) its certificate of organization and
        limited liability company agreement; and

                (5)     Neither State Farm nor any other party has made any
        representation, warranty or statement to Guarantor in order to induce
        Guarantor to execute this Guaranty; and

                (6)     The financial statements and other financial information
        regarding Guarantor heretofore and hereafter delivered to State Farm are
        and shall be true and correct in all material respects and fairly
        present the financial position of Guarantor as of the dates thereof, and
        no adverse change has occurred in the financial condition of Guarantor
        reflected in the financial statements and other financial information
        regarding Guarantor heretofore delivered to State Farm since the date of
        the last statement thereof; and

                (7)     As of the date hereof, and after giving effect to this
        Guaranty and the obligations evidenced hereby, (i) Guarantor is and will
        be solvent, (ii) the fair saleable value of Guarantor's assets exceeds
        and will continue to exceed its liabilities (both fixed and contingent),
        (iii) Guarantor is and will continue to be able to pay its debts as they
        mature, and (iv) if Guarantor is not an individual, Guarantor has and
        will continue to

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        have sufficient capital to carry on its business and all businesses in
        which it is about to engage.

        5.      COVENANTS. Guarantor hereby covenants and agrees with State Farm
as follows:

                (1)     Guarantor shall not, so long as its obligations under
        this Guaranty continue, transfer or pledge any material portion of its
        assets for less than full and adequate consideration; and

                (2)     Guarantor shall promptly furnish to State Farm at any
        time and from time to time such financial statements and other financial
        information of Guarantor as State Farm may reasonably require, in form
        and substance reasonably satisfactory to State Farm; and

                (3)     Guarantor shall comply with all terms and provisions of
        the Loan Documents that apply to Guarantor; and

                (4)     Guarantor shall promptly inform State Farm of (i) any
        litigation or governmental investigation against Guarantor or affecting
        any security for all or any part of the Guaranteed Indebtedness or this
        Guaranty which, if determined adversely, might have a material adverse
        effect upon the financial condition of Guarantor or upon such security
        or might cause a default under any of the Loan Documents, (ii) any claim
        or controversy which might become the subject of such litigation or
        governmental investigation, and (iii) any adverse change in the
        financial condition of Guarantor.

        6.      CONSENT AND WAIVER.

                (1)     Guarantor waives (i) promptness, diligence and notice of
        acceptance of this Guaranty and notice of the incurring of any
        obligation, indebtedness or liability to which this Guaranty applies or
        may apply and waives presentment for payment, notice of nonpayment,
        protest, demand, notice of protest, notice of intent to accelerate,
        notice of acceleration, notice of dishonor, diligence in enforcement and
        indulgences of every kind, and (ii) the taking of any other action by
        State Farm, including without limitation, except as otherwise required
        by the terms of the Loan Documents, giving any notice of default or any
        other notice to, or making any demand on, Borrower, any other guarantor
        of all or any part of the Guaranteed Indebtedness or any other party.

                (2)     State Farm may at any time, without the consent of or
        notice to Guarantor, without incurring responsibility to Guarantor and
        without impairing, releasing, reducing or affecting the obligations of
        Guarantor hereunder: (i) change the manner, place or terms of payment of
        all or any part of the Guaranteed Indebtedness, or renew, extend,
        modify, rearrange or alter all or any part of the Guaranteed
        Indebtedness; (ii) change the interest rate accruing on any of the
        Guaranteed Indebtedness (including, without limitation, any periodic
        change in such interest rate accruing on any of the Guaranteed
        Indebtedness (including, without limitation, any periodic change in such
        interest rate that occurs because such Guaranteed Indebtedness accrues
        interest at a variable rate which

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        may fluctuate from time to time); (iii) sell, exchange, release,
        surrender, subordinate, realize upon or otherwise deal with in any
        manner and in any order any collateral for all or any part of the
        Guaranteed Indebtedness or this Guaranty or setoff against all or any
        part of the Guaranteed Indebtedness; (iv) neglect, delay, omit, fail or
        refuse to take or prosecute any action for the collection of all or any
        part of the Guaranteed Indebtedness or this Guaranty or to take or
        prosecute any action in connection with any of the Loan Documents; (v)
        exercise or refrain from exercising any rights against Borrower or
        others, or otherwise act or refrain from acting; (vi) settle or
        compromise all or any part of the Guaranteed Indebtedness and
        subordinate the payment of all or any part of the Guaranteed
        Indebtedness to the payment of any obligations, indebtedness or
        liabilities which may be due or become due to State Farm or others;
        (vii) apply any deposit balance, fund, payment, collections through
        process of law or otherwise or other collateral of Borrower to the
        satisfaction and liquidation of the indebtedness or obligations of
        Borrower to State Farm not guaranteed under this Guaranty; and (viii)
        apply any sums paid to State Farm by Guarantor, Borrower or others to
        the Guaranteed Indebtedness in such order and manner as State Farm, in
        its sole discretion, may determine.

                (3)     Should State Farm seek to enforce the obligations of
        Guarantor hereunder by action in any court or otherwise, Guarantor
        waives any requirement, substantive or procedural, that (i) State Farm
        first enforce any rights or remedies against Borrower or any other
        person or entity liable to State Farm for all or any part of the
        Guaranteed Indebtedness, including without limitation that a judgment
        first be rendered against Borrower or any other person or entity, or
        that Borrower or any other person or entity should be joined in such
        cause, or (ii) State Farm first enforce rights against any collateral
        which shall ever have been given to secure all or any part of the
        Guaranteed Indebtedness or this Guaranty. Such waiver shall be without
        prejudice to State Farm's right, at its option, to proceed against
        Borrower or any other person or entity, whether by separate action or by
        joinder.

                (4)     IN ADDITION TO ANY OTHER WAIVERS, AGREEMENTS AND
        COVENANTS OF GUARANTOR SET FORTH HEREIN, GUARANTOR HEREBY FURTHER WAIVES
        AND RELEASES ALL CLAIMS, CAUSES OF ACTION, DEFENSES AND OFFSETS FOR ANY
        ACT OR OMISSION OF STATE FARM, ITS DIRECTORS, EMPLOYEES, REPRESENTATIVES
        OR AGENTS IN CONNECTION WITH STATE FARM'S ADMINISTRATION OF THE
        GUARANTEED INDEBTEDNESS, INCLUDING STATE FARM'S NEGLIGENCE OR STRICT
        LIABILITY, BUT EXCLUDING THE GROSS NEGLIGENCE AND WILLFUL MISCONDUCT OF
        STATE FARM.

        7.      OBLIGATIONS NOT IMPAIRED.

                (1)     Guarantor agrees that its obligations hereunder shall
        not be released, diminished, impaired, reduced or affected by the
        occurrence of any one or more of the following events: (i) the death,
        disability or lack of corporate power of Borrower, Guarantor (except as
        provided in PARAGRAPH 10 herein) or any other guarantor of all or any
        part of the Guaranteed Indebtedness, (ii) any receivership, insolvency,
        bankruptcy or

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        other proceedings affecting Borrower, Guarantor or any other guarantor
        of all or any part of the Guaranteed Indebtedness, or any of their
        respective property; (iii) the partial or total release or discharge of
        Borrower or any other guarantor of all or any part of the Guaranteed
        Indebtedness, or any other person or entity from the performance of any
        obligation contained in any instrument or agreement evidencing,
        governing or securing all or any part of the Guaranteed Indebtedness,
        whether occurring by reason of law or otherwise; (iv) the taking or
        accepting of any collateral for all or any part of the Guaranteed
        Indebtedness or this Guaranty including but not limited to a
        foreclosure, judicial or non-judicial, a transfer or deed in lieu of
        foreclosure or any conveyance or transfer from the Borrower; (v) the
        taking or accepting of any other guaranty for all or any part of the
        Guaranteed Indebtedness; (vi) any failure by State Farm to acquire,
        perfect or continue any lien or security interest on collateral securing
        all or any part of the Guaranteed Indebtedness or this Guaranty; (vii)
        the impairment of any collateral securing all or any part of the
        Guaranteed Indebtedness or this Guaranty; (viii) any failure by State
        Farm to sell any collateral securing all or any part of the Guaranteed
        Indebtedness or this Guaranty in a commercially reasonable manner or as
        otherwise require by law; (ix) any invalidity or unenforceability of or
        defect or deficiency in any of the Loan Documents; or (x) any other
        circumstance which might otherwise constitute a defense available to, or
        discharge of, Borrower or any other guarantor of all or any part of the
        Guaranteed Indebtedness.

                (2)     This Guaranty shall continue to be effective or be
        reinstated, as the case may be, if at any time any payment of all or any
        part of the Guaranteed Indebtedness is rescinded or must otherwise be
        returned by State Farm upon the insolvency, bankruptcy or reorganization
        of Borrower, Guarantor, any other guarantor of all or any part of the
        Guaranteed Indebtedness, or otherwise, all as though such payment had
        not been made.

                (3)     In the event Borrower is a corporation, joint stock
        association or partnership, or is hereafter incorporated, none of the
        following shall affect Guarantor's liability hereunder: (i) the
        unenforceability of all or any part of the Guaranteed Indebtedness
        against Borrower by reason of the fact that the Guaranteed Indebtedness
        exceeds the amount permitted by law; (ii) the act of creating all or any
        part of the Guaranteed Indebtedness is ultra vires; or (iii) the
        officers or partners creating all or any part of the Guaranteed
        Indebtedness acted in excess of their authority. Guarantor hereby
        acknowledges that withdrawal from, or termination of, any ownership
        interest in Borrower now or hereafter owned or held by Guarantor shall
        not alter, affect or in any way limit the obligations of Guarantor
        hereunder.

        8.      ACTIONS AGAINST GUARANTOR. In the event of a default in the
payment or performance of all or any part of the Guaranteed Indebtedness when
such Guaranteed Indebtedness becomes due, whether by its terms, by acceleration
or otherwise, Guarantor shall, without notice or demand, promptly pay the amount
due thereon to State Farm, in lawful money of the United States, at State Farm's
address set forth in SUBPARAGRAPH 1(I) above. One or more successive or
concurrent actions may be brought against Guarantor, either in the same action
in which Borrower is sued or in separate actions, as often as State Farm deems
advisable. The exercise by State Farm of any right or remedy under this Guaranty
or under any other agreement

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or instrument, at law, in equity or otherwise, shall not preclude concurrent or
subsequent exercise of any other right or remedy. The books and records of State
Farm shall be admissible in evidence in any action or proceeding involving this
Guaranty and shall be PRIMA FACIE evidence of the payments made on, and the
outstanding balance of, the Guaranteed Indebtedness.

        9.      PAYMENT BY GUARANTOR. Whenever Guarantor pays any sum which is
or may become due under this Guaranty, written notice must be delivered to State
Farm contemporaneously with such payment. Such notice shall be effective for
purposes of this paragraph when contemporaneously with such payment State Farm
receives such notice either by: (a) personal delivery to the address and
designated department of State Farm identified in SUBPARAGRAPH 1(A) above, or
(b) United States mail, certified or registered, return receipt requested,
postage prepaid, addressed to State Farm at the address shown in SUBPARAGRAPH
1(A) above. In the absence of such notice to State Farm by Guarantor in
compliance with the provisions hereof, any sum received by State Farm on account
of the Guaranteed Indebtedness shall be conclusively deemed paid by Borrower.

        10.     DEATH OF GUARANTOR. In the event of the death of Guarantor, the
obligations of the deceased Guarantor under this Guaranty shall continue as an
obligation against Guarantor's estate as to all of the Guaranteed Indebtedness.
The terms and conditions of this Guaranty, including without limitation the
consents and waivers set forth in PARAGRAPH 6 hereof, shall remain in effect
with respect to the Guaranteed Indebtedness in the same manner as if Guarantor
had not died.

        11.     NOTICE OF SALE. In the event that Guarantor is entitled to
receive any notice (which shall be given to the address listed on the signature
page hereof) under the Uniform Commercial Code, as it exists in the state
governing any such notice, of the sale or other disposition of any collateral
securing all or any part of the Guaranteed Indebtedness or this Guaranty,
reasonable notice shall be deemed given in the manner set forth in SECTION 8.1
of the Deed of Trust and Security Agreement executed by Borrower to the benefit
of State Farm dated of even date herewith.

        12.     WAIVER BY STATE FARM. No delay on the part of State Farm in
exercising any right hereunder or failure to exercise the same shall operate as
a waiver of such right. In no event shall any waiver of the provisions of this
Guaranty be effective unless the same be in writing and signed by an officer of
State Farm, and then only in the specific instance and for the purpose given.

        13.     SUCCESSORS AND ASSIGNS. This Guaranty is for the benefit of
State Farm, its successors and assigns. This Guaranty is binding upon Guarantor
and Guarantor's heirs, executors, administrators, personal representatives and
successors, including without limitation any person or entity obligated by
operation of law upon the reorganization, merger, consolidation or other change
in the organizational structure of Guarantor.

        14.     COSTS AND EXPENSES. Guarantor shall pay on demand by State Farm
all costs and expenses, including without limitation all reasonable attorneys'
fees, incurred by State Farm in

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connection with the preparation, administration, enforcement and/or collection
of this Guaranty. This covenant shall survive the payment of the Guaranteed
Indebtedness.

        15.     SEVERABILITY. If any provision of this Guaranty is held by a
court of competent jurisdiction to be illegal, invalid or unenforceable under
present or future laws, such provision shall be fully severable, shall not
impair or invalidate the remainder of this Guaranty and the effect thereof shall
be confined to the provision held to the illegal, invalid or unenforceable.

        16.     NO OBLIGATION. Nothing contained herein shall be construed as an
obligation on the part of State Farm to extend or continue to extend credit to
Borrower.

        17.     AMENDMENT. No modification or amendment of any provision of this
Guaranty, nor consent to any departure by Guarantor therefrom, shall be
effective unless the same shall be in writing and signed by an officer of State
Farm, and then shall be effective only in the specific instance and for the
purpose for which given.

        18.     CUMULATIVE RIGHTS. All rights and remedies of State Farm
hereunder are cumulative of each other and of every other right or remedy which
State Farm may otherwise have at law or in equity or under any instrument or
agreement, and the exercise of one or more of such rights or remedies shall not
prejudice or impair the concurrent or subsequent exercise of any other rights or
remedies.

        19.     GOVERNING LAW. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

        20.     VENUE. Federal and state courts within HARRIS COUNTY, TEXAS
shall have jurisdiction over any and all disputes arising under or pertaining to
this Guaranty and venue for any such disputes shall be in the county where the
Premises is located.

        21.     COMPLIANCE WITH APPLICABLE USURY LAWS. Notwithstanding any other
provision of this Guaranty or of any instrument or agreement evidencing,
governing or securing all or any part of the Guaranteed Indebtedness, Guarantor
and State Farm by its acceptance hereof agree that Guarantor shall never be
required or obligated to pay interest in excess of the maximum nonusurious
interest rate as may be authorized by applicable law for the written contracts
which constitute the Guaranteed Indebtedness. It is the intention of Guarantor
and State Farm to conform strictly to the applicable laws which limit interest
rates, any of the aforesaid contracts for interest, if and to the extent payable
by Guarantor, shall be held to be subject to reduction to the maximum
nonusurious interest rate allowed under said law.

        22.     DESCRIPTIVE HEADINGS AND DEFINITIONS. The headings in this
Guaranty are for convenience only and shall not define or limit provisions
hereof. All capitalized terms used herein, but not defined herein, shall have
the same meaning as set forth in the Promissory Note.

        23.     GENDER. Within this Guaranty, words of any gender shall be held
and construed to include the other gender.

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        24.     ENTIRE AGREEMENT. This Guaranty contains the entire agreement
between Guarantor and State Farm regarding the subject matter hereof and
supersedes all prior written and oral agreements and understandings, if any,
regarding same; provided, however, this Guaranty is in addition to and does not
replace, cancel, modify or affect any other guaranty of Guarantor now or
hereafter held by State Farm that relates to Borrower or any other person or
entity.

EXECUTED as of the date first above written.

ADDRESS FOR GUARANTOR                       GUARANTOR:

1323 N. Stemmons Freeway, Suite 200         BEHRINGER HARVARD HOLDINGS, LLC,
Dallas, Texas 75207                         a Texas limited liability company

                                            By: /s/ Gerald J. Reihsen, III
                                               ---------------------------------
                                               Gerald J. Reihsen, III, Secretary

STATE OF TEXAS           ss.
                         ss.
COUNTY OF DALLAS         ss.

        BEFORE ME, the undersigned authority, on this day personally appeared
Gerald J. Reihsen, III, Secretary of BEHRINGER HARVARD HOLDINGS, LLC, a Texas
limited liability company, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that he executed the same
for the purposes and consideration therein expressed, in the capacity therein
stated, and on behalf of said limited liability company.

                                          /s/ Alfred G. Kyle
                                          --------------------------------------
                                          Notary Public, State of Texas

                                          Alfred G. Kyle
                                          --------------------------------------
                                          Printed Name of Notary Public

                                          My Commission Expires: January 8, 2006
                                                                ----------------

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                                                                   EXHIBIT 10.19

                     PROPERTY AND ASSET MANAGEMENT AGREEMENT

        This PROPERTY AND ASSET MANAGEMENT AGREEMENT (the "Agreement") is dated
as of this 12th day of April, 2004, between Behringer Harvard Enclave S LP, a
Texas limited partnership ("Behringer"), and Behringer Harvard Enclave H LP, a
Texas limited partnership (the "Company") (collectively, the "Tenants in
Common"), and Behringer Harvard TIC Management Services LP, a Texas limited
partnership (the "Property Manager").

        The Tenants in Common own the commercial real estate located in Houston,
Texas commonly known as Enclave on the Lake and as more particularly described
in Exhibit "A" attached hereto and incorporated herein (the "Project"). The
Tenants in Common desire to engage the Property Manager to supervise, manage,
lease, operate, and maintain the Project. The Tenants in Common have entered
into a Tenants in Common Agreement (the "Tenants in Common Agreement")
concurrently herewith.

        NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

        1.      COMMENCEMENT AND TERMINATION DATES; AUTHORITY OF TENANTS IN
                COMMON.

                1.1     COMMENCEMENT AND TERMINATION. The Property Manager's
duties and responsibilities under this Agreement shall begin on the date of this
Agreement and shall terminate on the earlier of (i) the sale of the Project or
any portion thereof, as to such portion of the Project sold only (other than any
sale of an undivided interest held by a Tenant in Common to a party that will
acquire such interest subject to the Tenants in Common Agreement and this
Agreement), (ii) termination or the failure to renew as provided in Section 10,
or (iii) December 31, 2025.

                1.2     AUTHORITY OF THE TENANTS IN COMMON.

                        1.2.1   UNANIMOUS CONSENT OF THE TENANTS IN COMMON. The
consent of all of the Tenants in Common shall be required with respect to any
sale, exchange, lease, re-lease of all or a portion of the Project, any loans or
modifications of any loans secured by the Project, the approval of any property
management agreement or any extension, renewal or modification thereof. Whenever
in Tenants in Common Agreement, the consent or approval of the Tenants in Common
is required or otherwise requested, with respect to any (i) sale or exchange of
all or a portion of the Project or (ii) loan or modification of any loan secured
by the Project, the Tenants in Common shall have fifteen (15) days after the
date the request for such consent or approval is received pursuant to Section 12
to approve or disapprove of the matter. Whenever in the Tenants in Common
Agreement the consent or approval of the Tenants in Common is required or
otherwise requested, with respect to any modification or renewal of the any
property management agreement, the Tenants in Common shall have thirty (30) days
after the date the request for consent or approval is received pursuant to
Section 12 to the Tenants in Common for their approval or disapproval of the
matter. Whenever in the Tenants in Common Agreement the consent or approval of
the Tenants in Common is required or otherwise requested, with respect to any
lease or re-lease of all or a portion of the Project, the Tenants in Common
shall have five (5) days after the date the request for consent or approval is
received pursuant to Section 12 to the Tenants in Common for their approval or
disapproval of the matter. The Tenants in Common agree to use their best efforts
to respond to any request for consent or approval. If a Tenant in Common does
not disapprove of such matter within the specified response period described
above, the Tenant in Common shall be deemed to have approved the matter. By
execution hereof, the Tenants in Common confirm their approval of this Agreement
and that certain loan made (or to be made immediately after the execution of
this Agreement) by State Farm Life Insurance Company (together with its
successors and/or assigns, the "Lender") secured by, among other things, a
mortgage or deed of trust on the Project.

                        1.2.2   MAJORITY CONSENT OF THE TENANTS IN COMMON.
Whenever the approval or consent of the Tenants in Common is required with
respect to any items, other than those set forth in Section 1.2.1, the approval
or consent of the Tenants in Common holding more than 50% of the percentage
interest in the Project shall be required to approve such action. The Tenants in
Common shall have fifteen (15) days after the date the request for such consent
or approval is received pursuant to Section 12 to approve or disapprove of any

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<PAGE>

matter pursuant to this Section 1.2.2. The Tenants in Common agree to use their
best efforts to respond to any request for consent or approval. If a Tenant in
Common does not disapprove of such matter within the specified response period
described above, the Tenant in Common shall be deemed to have approved the
matter.

                        1.2.3   AUTHORITY OF PROPERTY MANAGER. Upon the approval
any item by the Tenants in Common pursuant to Sections 1.2.1 and 1.2.2 above,
the Property Manager shall have the power and authority to act on behalf of the
Tenants in Common with respect to such items.

        2.      PROPERTY MANAGER'S RESPONSIBILITIES.

                2.1     STATUS OF THE PROPERTY MANAGER. The Tenants in Common
and the Property Manager do not intend to form a joint venture, partnership or
similar relationship. Instead, the parties intend that the Property Manager
shall act solely in the capacity of an independent contractor for the Tenants in
Common. Nothing in this Agreement shall cause the Property Manager and the
Tenants in Common to be joint venturers or partners of each other, and neither
shall have the power to bind or obligate the other party by virtue of this
Agreement, except as expressly provided in this Agreement. Nothing in this
Agreement shall deprive or otherwise affect the right of either party to own,
invest in, manage, or operate, or to conduct business activities which compete
with the business of the Project.

                2.2     MANAGEMENT. The Property Manager shall manage, operate
and maintain the Project in an efficient, economic, and satisfactory manner and
shall arrange the performance of everything reasonably necessary for the proper
operation of the Project for the tenants thereof, subject to (a) applicable
governmental requirements and (b) the terms and provisions of this Agreement. At
the expense of the Tenants in Common, the Property Manager shall keep the
Project clean and in good repair, shall order and supervise the completion of
such repairs as may be required and shall generally do and perform, or cause to
be done or performed, all things necessary, required or desirable for the proper
and efficient management, operation, and maintenance of the Project; provided
the Tenants in Common, in a manner reasonably satisfactory to the Property
Manager, make available to the Property Manager such sums as are reasonably
necessary to pay the costs thereof. In addition to the foregoing, Property
Manager shall have exclusive responsibility for interfacing and communicating
with the owner and holder of any deed of trust upon the Project, including,
without limitation, State Farm Life Insurance Company (the current holder of the
deed of trust on the Project) and its successors and assigns, and shall (i) make
all day to day business decisions customarily provided by a property manager and
(ii) perform all services customarily provided by a property manager, with
respect to interfacing with a lender. The Property Manager shall perform all
services in a diligent and professional manner.

                2.3     EMPLOYEES: INDEPENDENT CONTRACTOR. The Property Manager
shall employ, directly or through third party contractors (e.g. employee leasing
company), at all times a sufficient number of capable employees to enable the
Property Manager to properly, adequately, safely and economically manage,
operate and maintain the Project. All matters pertaining to the supervision of
such employees shall be the responsibility of the Property Manager. All salaries
and benefits and positions of employees who perform work in connection with the
Project shall be consistent with the Budget (as defined in Section 2.5.1).

                2.4     COMPLIANCE WITH LAWS, MORTGAGES AND OTHER MATTERS.

                        2.4.1   The Property Manager shall use reasonable
efforts to comply with any deed of trust, mortgage or other loan documents
affecting the Project and all governmental requirements, including Board of Fire
Underwriters or other similar body, relative to the performance of its duties
hereunder and cause the Project to comply with any deed of trust, mortgage or
other loan documents affecting the Project and all governmental requirements,
including Board of Fire Underwriters or other similar body. Property Manager may
implement such procedures with respect to the Project as the Property Manager
may deem advisable for the more efficient and economic management and operation
thereof. The Property Manager shall pay from the Operating Account (defined in
Section 6.1) expenses incurred to remedy violations.

                        2.4.2   The Property Manager shall furnish to the
Tenants in Common, promptly after receipt, any notice of violation of any
governmental requirement or order issued by any governmental entity, any Board
of Fire Underwriters or other similar body against the Project, any notice of
default from the holder of any

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<PAGE>

mortgage or deed of trust encumbering the Project or any notice of termination
or cancellation of any insurance policy.

                2.5     BUDGETS AND OPERATING PLAN.

                        2.5.1   The Property Manager shall prepare and submit to
the Tenants in Common an initial capital and operating budget ("Budget") on a
monthly accrual basis for the promotion, operation, leasing, repair, maintenance
and improvement of the Project for the current calendar year. The Budget for the
initial calendar year is attached hereto as Exhibit "C" and is hereby approved
by each Tenant in Common. The Property Manager shall deliver each subsequent
Budget for each subsequent calendar year on or about December 15th of the
calendar year before the budget year, or as soon as possible thereafter. The
Budget shall be approved by the Tenants in Common as set forth in Section 1.2.2.
Each Tenant in Common shall be deemed to have approved the Budget unless the
Tenant in Common provides a written notice indicating the specific objection to
the specific Budget item within 15 days from receipt of the Budget as determined
pursuant to Section 12. The Tenants in Common agree to use their best efforts to
respond to any request to approve the Budget. In the event that the Tenants in
Common do not approve of the Budget, the Tenants in Common shall negotiate in
good faith with the Property Manager and the other Tenants in Common to obtain
an acceptable Budget. The Property Manager may proceed under the terms of the
proposed Budget for items that are not objected to and may take any action with
respect to items not approved for Emergency Expenditures (as defined in Section
2.5.2). In the event that the items that are objected to are operational
expenditures, as opposed to capital expenditures, the Property Manager shall be
entitled to operate the Project using the prior year's budget until the approval
is obtained. The Property Manager shall provide the Tenants in Common with such
information regarding the Budget as may be, from time to time, reasonably
requested by the Tenants in Common. The Property Manager may at any time submit
a revised Budget to the Tenants in Common for their approval pursuant to Section
1.2.2.

                        2.5.2   The Property Manager shall charge all expenses
to the proper account as specified in the Budget, provided that the Property
Manager may reallocate savings from one line item to other line items. The
Property Manager shall submit (subject to the same procedures as set forth in
Section 2.5.1) a revised Budget to the Tenants in Common before making any
expenditure not within the Budget unless the expenditure is (a) less than Fifty
Thousand Dollars ($50,000) or (b) is, in the Property Manager's reasonable
judgment, required to avoid personal injury, significant property damage, a
default under any loan encumbering the Project, a violation of applicable law or
the suspension of a service (collectively, "Emergency Expenditures").

                        2.5.3   During each calendar year, in the regular
quarterly reports sent to the Tenants in Common, the Property Manager shall
inform the Tenants in Common of any material increases in costs and expenses not
foreseen and not included in the Budget within a reasonable time after the
Property Manager learns of such changes.

                        2.5.4   Together with the submission of the Budget, the
Property Manager shall submit each year to the Tenants in Common for information
purposes only an operating plan for the general operation of the Project,
including a proposed list of improvements to the Project, general insurance
plan, marketing plan and plan for the general operation and maintenance of the
Project (the "Operating Plan"). The Property Manager may submit a revised
Operating Plan to the Tenants in Common at any time.

                2.6     LEASING.

                        2.6.1   The Property Manager shall use commercially
reasonable efforts to obtain tenants for all leasable space in the Project and
to renew leases and rental agreements (collectively, "Leases"). The Property
Manager shall have the authority to negotiate new and renewal Leases on behalf
of the Tenants in Common and to execute and deliver on behalf of the Tenants in
Common any Leases that are approved by the Tenants in Common pursuant to Section
1.2. In connection with its leasing efforts, the Property Manager may advertise
the Project for lease.

                        2.6.2   Notwithstanding anything to the contrary
contained herein, the Property Manager shall only provide customary services to
tenants of the Project and shall provide no other services to the tenants on
behalf of the Tenants in Common.

                                        3
<PAGE>

                        2.6.3   The Property Manager shall not, without the
prior written approval of the Tenants in Common, give free rental or discounts
or rental concessions to any employees, officers or shareholders of the Property
Manager or anyone related to such employees, officers or shareholders unless
such discounts or concessions are in lieu of salaries or other benefits to which
they would be contractually entitled. The Property Manager shall not lease any
space in the Project to itself or to any of its affiliates or subsidiaries.

                        2.6.4   The Property Manager shall reasonably
investigate all prospective tenants, and shall not rent to persons not meeting
credit standards reasonable for the market. The Property Manager shall obtain a
credit check for all prospective tenants through Dunn & Bradstreet, TRW or a
similar service ("Credit Check Companies"). The Property Manager shall retain
such information for the duration of the tenancy, and shall make it available to
the Tenants in Common upon reasonable notice, subject to compliance with any
confidentiality restrictions required by Credit Check Companies. The Property
Manager does not guarantee the accuracy of any such information or the financial
condition of any tenant.

                        2.6.5   The Property Manager and the Tenants in Common
agree that there shall be no discrimination against or segregation of any person
or group of persons on account of age, race, color, religion, creed, handicap,
sex or national origin in the leasing of the Project, nor shall the Tenants in
Common or the Property Manager permit any such practice or practices of
discrimination or segregation with respect to the selection, location, number or
occupancy of tenants.

                        2.6.6   The Property Manager shall engage contractors,
engineers, architects and other consultants on behalf of the Tenants in Common
to design and construct customary tenant improvements contemplated by the Leases
that are in accordance with the approved leases or the Budget. The Property
Manager shall oversee the design and construction of such tenant improvements.
For any contract requiring payment in excess of $50,000, the Property Manager
shall follow the bidding requirements specified in Section 2.9.

                2.7     COLLECTION OF RENTS AND OTHER INCOME. The Property
Manager shall bill all tenants and shall use its commercially reasonable efforts
to collect all rent and other charges due and payable from any tenant or from
others for services provided in connection with the Project. The Property
Manager shall deposit all monies so collected in the Operating Account. The
Property Manager shall allocate all income, revenue and expense from the Project
to the Tenants in Common as set forth in the Tenants in Common Agreement.

                2.8     REPAIRS AND MAINTENANCE. The Property Manager shall
maintain the buildings, appurtenances and grounds of the Project, other than
areas that are the responsibility of tenants, including, without limitation, all
ordinary and extraordinary repairs, cleaning, painting, decorations and
alterations including electrical, plumbing, carpentry, masonry, elevators and
such other routine repairs as are necessary or reasonably appropriate in the
course of maintenance of the Project (subject to the limitations of this
Agreement). The Property Manager shall pay actual and reasonable expenses for
materials and labor for such purposes from the Operating Account. The Property
Manager shall take reasonable precautions against fire, vandalism, burglary and
trespass to the Project.

                2.9     CAPITAL EXPENDITURES. The Property Manager may make any
capital expenditure within any Budget approved by the Tenants in Common without
any further consent, provided that the Property Manager follows the bidding
requirements set forth in this Section 2.9 for a capital expenditure in excess
of $50,000. All other capital expenditures other than Emergency Expenditures
shall be subject to submittal of a revised Budget to the Tenants in Common.
Unless the Tenants in Common specifically waive such requirements, or approve a
particular contract, the Property Manager shall award any contract for a capital
improvement exceeding $50,000 in cost on the basis of competitive bidding,
solicited from a minimum of two (2) written bids. The Property Manager shall
accept the bid of the lowest bidder determined by the Property Manager to be
responsible and qualified.

                2.10    SERVICE CONTRACTS, SUPPLIES AND EQUIPMENT.

                        2.10.1  The Property Manager may enter into or renew any
contract for cleaning, maintaining, repairing or servicing the Project or any of
the constituent parts of the Project (including contracts for fuel oil, security
or other protection, extermination, landscaping, architectural or engineering
services) contemplated by the Budget and consistent with the Operating Plan with
any unrelated third party. Each such service contract shall (a) be in the name
of the Tenants in Common, (b) be assignable to the nominee of the Tenants in
Common and

                                        4
<PAGE>

(c) be for a term not to exceed one (1) year. Unless the Tenants in Common
specifically waive such requirements or approve a particular contract, all
service contracts for amounts in excess of $50,000 per year shall be subject to
the bidding requirements specified in Section 2.9.

                        2.10.2  If this Agreement terminates or is not renewed
pursuant to Section 10, the Property Manager, at the option of the Tenants in
Common, shall assign to the nominee of the Tenants in Common all of the Property
Manager's interest in all service agreements pertaining to the Project, if any.

                        2.10.3  At the expense of the Tenants in Common, the
Property Manager shall purchase, provide, and pay for all needed janitorial and
maintenance supplies, tools and equipment, restroom and toilet supplies, light
bulbs, paints, and similar supplies necessary to the efficient and economical
operation and maintenance of the Project. Such supplies and equipment shall be
the property of the Tenants in Common. All such supplies, tools, and equipment
shall be delivered to and stored at the Project and shall be used only in
connection with the management, operation, and maintenance of the Project.

                        2.10.4  The Property Manager shall use reasonable
efforts to purchase all goods, supplies or services at the lowest cost
reasonably available from reputable sources in the metropolitan area where the
Project is located. In making any contract or purchase hereunder, the Property
Manager shall use reasonable efforts to obtain favorable discounts for the
Tenants in Common and all discounts, rebates or commissions under any contract
or purchase order made hereunder shall inure to the benefit of the Tenants in
Common. The Property Manager shall make payments under any such contract or
purchase order to enable the Tenants in Common to take advantage of any such
discount if the Tenants in Common provide sufficient funds therefor.

                2.11    TAXES, MORTGAGES. The Property Manager, unless otherwise
requested, shall obtain and verify bills for real estate and personal property
taxes, general and special real property assessments and other like charges
(collectively "Taxes") which are or may become liens against the Project and
appeal such Taxes as the Property Manager may decide in its reasonable judgment.
The Property Manager shall report any such Taxes that materially exceed the
amounts contemplated by the Budget to the Tenants in Common prior to the
Property Manager's payment thereof. The Property Manager, if requested by the
Tenants in Common, will cooperate to prepare an application for correction of
the assessed valuation (in cooperation with representatives of the Tenants in
Common) to be filed with the appropriate governmental agency. The Property
Manager shall pay, within the time required to obtain discounts, from funds
provided by the Tenants in Common or from the Operating Account, all utilities,
Taxes and payments due under each lease, mortgage, deed of trust or other
security instrument, if any, affecting the Project. To the extent contemplated
by the Budget and in conformance with the Operating Plan (as either may be
revised from time to time), the Property Manager may make any such payments.

                2.12    TENANT RELATIONS. The Property Manager will use
reasonable efforts to develop and maintain good tenant relations in the Project.
At all times during the term hereof, the Property Manager shall use its
reasonable efforts to retain existing tenants in the Project and, after
completion of the initial leasing activity, to retain the new tenants. The
Property Manager shall use its reasonable efforts to secure compliance by the
tenants with the terms and conditions of their respective Leases.

                2.13    MISCELLANEOUS DUTIES. The Property Manager shall (a)
maintain at the Property Manager's office at the Property Manager's address as
set forth in Section 12 or at the subcontractor to the Property Manager or at
the Project or at a designated office in the region of the Project and readily
accessible to the Tenants in Common orderly files containing rent records,
insurance policies, leases and subleases, correspondence, receipted bills and
vouchers, bank statements, canceled checks, deposit slips, debit and credit
memos, and all other documents and papers pertaining to the Project or the
operation thereof; (b) provide reports for the preparation and filing by the
Tenants in Common of each income or other tax return required by any
governmental authority, including annual statements allocating the expenses of
and income from the Project to each Tenant in Common; (c) consider and record
tenant service requests in systematic fashion showing the action taken with
respect to each, and thoroughly investigate and report to the Tenants in Common
in a timely fashion with appropriate recommendations all complaints of a nature
that might have a material adverse effect on the Project or the Budget; (d)
supervise the moving in and out of tenants and subtenants; arrange, to the
extent possible, the dates thereof to minimize disturbance to the operation of
the Project and inconvenience to other tenants or subtenants; and render an
inspection report, an assessment for damages and a recommendation on the
disposition of any deposit held as security for the

                                        5
<PAGE>

performance by the tenant under its lease with respect to each premises vacated;
(e) check all bills received for the services, work and supplies ordered in
connection with maintaining and operating the Project and, except as otherwise
provided in this Agreement, pay such bills when due and payable; and (f) not
knowingly permit the use of the Project for any purpose that might void any
policy of insurance held by the Tenants in Common or that might render any loss
thereunder uncollectible. All such records are the property of the Tenants in
Common and will be delivered to the Tenants in Common upon request.

        3.      BASIC INSURANCE.

                3.1     INSURANCE.

                        3.1.1   The Property Manager, at the Tenants in Common's
expense, will obtain and keep in force adequate insurance against physical
damage (such as fire with extended coverage endorsement, boiler and machinery)
and against liability for loss, damage or injury to property or persons that
might arise out of the occupancy, management, operation or maintenance of the
Project, as contemplated by the Operating Plan and to the extent available at
commercially reasonable rates. The Property Manager shall not be required to
maintain earthquake or flood insurance unless expressly directed to do so by a
specific written notice from the Tenants in Common, but may do so in the
Property Manager's reasonable discretion. The Property Manager shall be a named
insured on all property damage insurance and an additional insured on all
liability insurance maintained with respect to the Project. In the event the
Property Manager receives insurance proceeds for the Project, the Property
Manager will take any required actions as set forth in the Loan Documents. In
the event that the Property Manager receives insurance proceeds that are not
governed by the terms of the Loan Documents, the Property Manager will either
(i) use such proceeds to replace, repair or refurbish the Project or (ii)
distribute such proceeds to the Tenants in Common, as directed by the Tenants in
Common. Any insurance proceeds distributed to the Tenants in Common will be
distributed subject to the fees owed to the Property Manager pursuant to this
Agreement.

                        3.1.2   As part of the Operating Plan, the Property
Manager shall advise the Tenants in Common in writing and make recommendations
with respect to the proper insurance coverage for the Project, taking into
account the insurance requirements set forth in any deed of trust or mortgage on
the Project, shall furnish such information as the Tenants in Common may
reasonably request to obtain insurance coverage and shall reasonably aid and
cooperate with respect to such insurance and any loss thereunder. The Tenants in
Common acknowledge that the Property Manager is not a licensed insurance agent
or insurance expert. Accordingly, the Property Manager shall be entitled to rely
on the advice of a reputable insurance broker or consultant regarding the proper
insurance for the Project.

                        3.1.3   The Property Manager shall investigate and
submit, as soon as reasonably possible, a written report to the insurance
carrier and the Tenants in Common as to all accidents, claims for damage
relating to the ownership, operation and maintenance of the Project, any damage
to or destruction of the Project and the estimated costs of repair thereof, and
prepare and file with the insurance company in a timely manner required reports
in connection therewith. Notwithstanding the foregoing, the Property Manager
shall not be required to give such notice to the Tenants in Common if the amount
of such claims, damage or destruction, as reasonably estimated by the Property
Manager, does not exceed $50,000 for any one occurrence. The Property Manager
shall settle all claims against insurance companies arising out of any policies,
including the execution of proofs of loss, the adjustment of losses, signing and
collection of receipts and collection of money, except that the Property Manager
shall not settle claims in excess of $50,000 without the prior approval of the
Tenants in Common as set forth in Section 1.2.2.

                3.2     ADDITIONAL INSURANCE. Any insurance obtained by the
Property Manager for its own account and not for the benefit of the Tenants in
Common or the Project shall be at the Property Manager's own expense.

                3.3     CONTRACTOR'S AND SUBCONTRACTOR'S INSURANCE. The Property
Manager shall require all contractors and subcontractors entering upon the
Project to perform services to have insurance coverage at the contractor's or
subcontractor's expense, in the following minimum amounts: (a) worker's
compensation - statutory amount; (b) employer's liability (if required under
applicable law) - $500,000 (minimum); and (c) comprehensive general liability
insurance, including comprehensive auto liability insurance covering the use of
all owned, non-

                                       6
<PAGE>

owned and hired automobiles, with bodily injury and property damage limits of
$1,000,000 per occurrence. The Property Manager may waive such requirements in
its reasonable discretion. The Property Manager shall obtain and keep on file a
certificate of insurance that shows that each contractor and subcontractor is so
insured.

                3.4     WAIVER OF SUBROGATION. To the extent available at
commercially reasonable rates, all property damage insurance policies required
hereunder shall contain language whereby the insurance carrier thereunder waives
any right of subrogation it may have with respect to the Tenants in Common or
the Property Manager.

        4.      FINANCIAL REPORTING AND RECORD KEEPING.

                4.1     BOOKS OF ACCOUNTS. The Property Manager shall maintain
adequate and separate books and records for the Project with the entries
supported by sufficient documentation to ascertain their accuracy with respect
to the Project. Such books and records shall contain a separate allocation of
income and expenses to each Tenant in Common. The Tenants in Common agree to
provide to the Property Manager any financial or other information reasonably
requested by the Property Manager to carry out its services hereunder. The
Property Manager shall maintain such books and records at the Property Manager's
office at the Property Manager's address as set forth in Section 12 or at the
subcontractor to the Property Manager or at the Project or at a designated
office in the region of the Project. The Property Manager shall ensure such
control over accounting and financial transactions as is reasonably necessary to
protect the Tenants in Common's assets from theft, error or fraudulent activity
by the Property Manager's employees. The Property Manager shall bear losses
arising from such instances, including, without limitation, the following: (a)
theft of assets by the Property Manager's employees, principals, or officers or
those individuals associated or affiliated with the Property Manager; (b)
overpayment or duplicate payment of invoices arising from either fraud or gross
negligence, unless credit is subsequently received; (c) overpayment of labor
costs arising from either fraud or gross negligence, unless credit is
subsequently received by the Tenants in Common; (d) overpayment resulting from
payment from suppliers to the Property Manager's employees or associates arising
from the purchase of goods or services for the Project; and (e) unauthorized use
of facilities by the Property Manager or the Property Manager's employees or
associates.

                4.2     FINANCIAL REPORTS. On or about the forty-fifth (45th)
day following each quarter, the Property Manager shall furnish to the Tenants in
Common a report of all significant transactions occurring during the prior
quarter. These reports shall show all collections, delinquencies, uncollectible
items, vacancies and other matters pertaining to the management, operation, and
maintenance of the Project during the quarter. The Property Manager also shall
deliver to the Tenants in Common within a reasonable time after (i) the close of
a calendar year and (ii) the termination of this Agreement, a balance sheet for
the Project. The statement of income and expenses, the balance sheet, and all
other financial statements and reports shall be prepared on an accrual basis
according, to the extent possible, to generally accepted accounting principles
(except that footnote disclosures are not required). The Property Manager may,
but shall not be required, to obtain audited financial statements for the
Project. The Property Manager shall also comply with all reporting requirements
relating to the operation of the Project required under any deed of trust
affecting the Project.

                4.3     SUPPORTING DOCUMENTATION. As additional support to the
quarterly financial statement, unless otherwise directed by the Tenants in
Common, and at the expense of the Tenants in Common, the Property Manager shall
maintain and make available at the Property Manager's office at the Property
Manager's address as set forth in Section 12 or at the subcontractor to the
Property Manager or at the Project or at a designated office in the region of
the Project the following: (a) all bank statements, bank deposit slips, bank
debit and credit memos, canceled checks, and bank reconciliations; (b) detailed
cash receipts and disbursement records; (c) detailed trial balance for
receivables and payables and billed and unbilled revenue items; (d) rent roll of
tenants; (e) paid invoices (or copies thereof); (f) summaries of any adjusting
journal entries; (g) supporting documentation for payroll, payroll taxes and
employee benefits; (h) appropriate details of accrued expenses and property
records; (i) information regarding the operation of the Project necessary for
preparation of the tax returns for the Tenants in Common; and (j) market study
of competition (quarterly only). The Property Manager shall deliver a copy of
the documents described in (a) through (j) above to any Tenant in Common upon
written request. The Property Manager shall maintain within such items separate
income and expense accounts for each Tenant in Common, where and as appropriate.

                                       7
<PAGE>

                4.4     TAX INFORMATION. The Property Manager shall provide the
Tenants in Common with sufficient information so that the Tenants in Common can
prepare their income tax returns with appropriate adjustments to convert the
information prepared on an accrual basis to the cash method of accounting.

        5.      RIGHT TO AUDIT. Each of the Tenants in Common and their
representatives may examine all books, records and files maintained for the
Tenants in Common by the Property Manager. The Tenants in Common may perform any
audit or investigations relating to the Property Manager's activities at any
office of the Property Manager if such audit or investigation relates to the
Property Manager's activities for the Tenants in Common. Should any of the
Tenants in Common discover defects in internal control or errors in record
keeping, the Property Manager shall undertake with all appropriate diligence to
correct such discrepancies either upon discovery or within a reasonable period
of time. The Property Manager shall inform the Tenants in Common in writing of
the action taken to correct any audit discrepancies.

        6.      BANK ACCOUNTS.

                6.1     OPERATING ACCOUNT. The Property Manager shall deposit
all rents and other funds collected from the operation of the Project in a
reputable bank or financial institution in a special trust or depository account
or accounts for the Project maintained by the Property Manager for the benefit
of the Tenants in Common. The Property Manager shall maintain books and records
of the funds deposited in the accounts and withdrawals therefrom (including
records of deposits and withdrawals credited and charged to each Tenant in
Common) (such accounts together with any interest earned thereon, shall
collectively be referred to herein as the "Operating Account"). The Tenants in
Common shall maintain the Operating Account so that an amount at least as great
as the budgeted expenses for such month is in such Operating Account as of the
first of each month. The Property Manager shall pay from the Operating Account
the operating expenses of the Project and any other payments relative to the
Project as required by this Agreement. If more than one account is necessary to
operate the Project, each account shall have a unique name, except to the extent
any Lender requires sub-accounts within any account.

                6.2     SECURITY DEPOSIT ACCOUNT. If law or a Lender requires a
segregated account of security deposits, the Property Manager will open a
separate account at a reputable bank or other financial institution. The
Property Manager shall maintain such account in accordance with applicable law
and/or the applicable loan agreement. The Property Manager shall use the account
only to maintain security deposits. The Property Manager shall inform the bank
or financial institution to hold the funds in trust for the Tenants in Common.
The Property Manager shall maintain detailed records of all security deposits
deposited, and allow the Tenants in Common or its designees access to such
records. The Property Manager may return such deposits to any tenant in the
ordinary course of business in accordance with the terms of the applicable
lease.

                6.3     ACCESS TO ACCOUNT. As authorized by signature cards,
representatives of the Property Manager shall have access to and may draw upon
all funds in the accounts described in Sections 6.1 and 6.2 without the approval
of the Tenants in Common. Additionally, representatives of the Property Manager
shall have access to and may draw upon any funds escrowed or held in reserves
for capital expenditures without the approval of the Tenants in Common, provided
that the requirements of Section 2.9 and any additional Lender requirements with
respect to such amounts are satisfied. The Tenants in Common may not withdraw
funds from such accounts without the Property Manager's signature except
following the Property Manager's default beyond any applicable notice and cure
period or the termination of this Agreement.

        7.      PAYMENTS OF EXPENSES. The Property Manager shall pay all
expenses of the operation, maintenance and repair with respect to the Project
contemplated by the Budget directly from the Operating Account or shall be
reimbursed by the Tenants in Common, subject to the conditions set forth in
Section 2, including the following: (a) costs of the gross salary and wages or
proportional shares thereof, payroll taxes, worker's compensation insurance, and
all other benefits of employees required to manage, operate and maintain the
Project properly, adequately, safely and economically, subject to this
Agreement, provided that the Property Manager shall not pay such employees in
advance; (b) cost to correct the violation of any governmental requirement
relating to the leasing, use, repair and maintenance of the Project, or relating
to the rules, regulations or orders of the local Board of Fire Underwriters or
other similar body, if such cost is not the result of the Property Manager's
gross negligence or willful misconduct; (c) actual and reasonable cost of making
all repairs, decorations and alterations if such cost is not the result of the
Property Manager's gross negligence or willful misconduct; (d) cost incurred by
the Property

                                       8
<PAGE>

Manager in connection with all service agreements; (e) cost of collection of
delinquent rents collected by a collection agency or attorney; (f) legal fees of
attorneys; (g) cost of capital expenditures subject to the restrictions in
Section 2.9 and in this Section; (h) cost of printed checks for each account
required by the Tenants in Common; (i) cost of utilities; (j) cost of
advertising; (k) cost of printed forms and supplies required for use at the
Project; (l) management compensation set forth in Section 9; (m) the cost of
tenant improvements to the Project; (n) all hiring, relocation and termination
costs for any employee, including those individuals whose salaries and benefits
are paid by the Tenants in Common; (o) broker commissions; (p) debt service; (q)
the cost of services, contractors and insurance; (r) reimbursement of the
Property Manager's out-of-pocket costs and expenses to the extent not prohibited
by Section 8; (s) general accounting and reporting services within the
reasonable scope of the Property Manager's responsibility to the Tenants in
Common; (t) cost of forms, papers, ledgers, and other supplies and equipment
used in the Property Manager's office at any location; (u) cost of electronic
data processing equipment, including personal computers located at the Property
Manager's office off the Project for preparation of reports, information and
returns to be prepared by the Property Manager under the terms of this
Agreement; (v) cost of electronic data processing provided by computer service
companies for preparation of reports, information and returns to be prepared by
the Property Manager under the terms of this Agreement; (w) travel and
entertainment expenses intended to advance the interests of the Project such as
travel and entertainment for prospective new tenants or for brokers; and (x) all
overhead and indirect expenses of the Property Manager's office, including, but
not limited to, communication costs (telephone, postage, etc.), computer rentals
or time, supplies (paper, envelopes, business forms, checks, payroll forms and
record cards, forms for governmental reports, etc.), printing, equipment,
insurance, fidelity bonds, taxes and license fees, and general office expenses
allocable to the Project. All other amounts payable with respect to the Project
shall be payable from the Operating Account only after a revised Budget has been
submitted to the Tenants in Common, as provided in this Agreement. If there are
not sufficient funds in the account to make any such payment, the Property
Manager shall notify the Tenants in Common, if possible, at least ten (10) days
prior to any delinquency so that the Tenants in Common have an opportunity to
deposit sufficient funds in the Operating Account to allow for such payment
before the imposition of any penalty or late charge. No later than the end of
the succeeding month, the Property Manager shall remit to the Tenants in Common
all unexpended funds for the prior month, except for reserves reflected in the
Budget or required by the Lender which shall remain in the Operating Account in
the amount equal to the expenses budgeted for the month in which the remittance
is to be made. Except with respect any expenses that are determined to be
properly allocable on other than a pro rata basis, all expenses of the Project
shall be allocated to the Tenants in Common on a pro rata basis.

        8.      PROPERTY MANAGER'S COSTS NOT TO BE REIMBURSED.

                8.1     NON-REIMBURSABLE COSTS. The following expenses or costs
incurred by or on behalf of the Property Manager in connection with the
management and leasing of the Project shall be at the sole cost and expense of
the Property Manager and shall not be reimbursed by the Tenants in Common: (a)
costs attributable to losses arising from gross negligence, willful misconduct
or fraud on the part of the Property Manager, the Property Manager's associates
or employees; and (b) cost of insurance purchased by the Property Manager for
its own account.

                8.2     LITIGATION. The Property Manager will be responsible for
and hold the Tenants in Common harmless from, all costs relating to disputes
with employees for worker's compensation (to the extent not covered by
insurance), discrimination or wrongful termination, including legal fees and
other expenses.

        9.      COMPENSATION.

                9.1     PROPERTY MANAGEMENT FEE. The Property Manager shall
receive, for its services in managing the day-to-day operations of the Project
in accordance with the terms of this Agreement, a monthly property management
fee (the "Property Management Fee") equal to three percent (3%) of the Gross
Revenues (defined below), which Property Management Fee shall be in addition to
the Asset Management Fee (defined in Section 9.2) and any out-of-pocket and
on-site personnel costs that are reimbursable pursuant to Section 7. "Gross
Revenues" shall be all gross billings from the operations of the Project
including rental receipts, lease buy-out payments, and reimbursements by tenants
for common area expenses, operating expenses and taxes and similar pass-through
obligations paid by tenants, but excluding (i) security deposits received from
tenants and interest accrued thereon for the benefit of the tenant until such
deposits or interest are included in the taxable income of the Tenants in
Common; (ii) advance rents (but not lease buy-out payments) until the month in
which payments are to

                                       9
<PAGE>

apply as rental income; (iii) reimbursements by tenants for work done for that
particular tenant, (iv) proceeds from the sale or other disposition of all or
any part of the Project, (v) insurance proceeds received by the Tenants in
Common as a result of any insured loss (except proceeds from rent insurance or
the excess of insurance proceeds for repairs over the actual costs of such
repairs), (vi) condemnation proceeds not attributable to rent, (vii) capital
contributions made by the Tenants in Common; (viii) proceeds from capital,
financing and any other transactions not in the ordinary course of the operation
of the Project, (ix) income derived from interest on investments or otherwise,
(x) abatement of taxes, awards arising out of takings by eminent domain,
discounts and dividends on insurance policies, and (xi) rental concessions not
paid by third parties. The Property Management Fee shall be payable monthly from
the Operating Account or from other funds timely provided by the Tenants in
Common. Upon termination of this Agreement, the parties will prorate the
Management Fee on a daily basis to the effective date of such cancellation or
termination. Upon a sale of the Project, the Property Manager shall receive
additional compensation equal to the previous month's Property Management Fee as
compensation for work to be performed in connection with the sale or completion
of managing matters relating to each tenant.

                9.2     ASSET MANAGEMENT FEE. The Property Manager shall
receive, for its services in supervising the overall management and operation of
the Project in accordance with the terms of this Agreement, an annual asset
management fee (the "Asset Management Fee") equal to $42,000, and pro rated for
any partial year, which Asset Management Fee shall be in addition to the
Property Management Fee (defined in Section 9.1) and shall be payable pro rata
on a monthly basis on the first day of each month (or in the case of the first
partial month beginning on the date hereof a pro rata amount payable on the date
hereof) plus any out-of-pocket and on-site personnel costs that are reimbursable
pursuant to Section 7. The Property Manager may defer, in its sole discretion,
all or any portion of such annual Asset Management Fee. Any such unpaid Asset
Management Fees shall, in all event, be paid upon the earliest to occur of the
following events: (i) the termination of this Agreement, (ii) the sale of the
Project or (iii) 10 years from the accrual of any such unpaid Asset Management
Fee. Upon termination of this Agreement or upon a sale of the Project, the
parties will prorate the Asset Management Fee on a daily basis to the effective
date of such cancellation or termination.

                9.3     LEASING COMMISSIONS. The Property Manager, or an
affiliate, shall receive, for its services in leasing the Project in accordance
with the terms of this Agreement, a leasing commission (the "Leasing
Commission") as set forth on the Schedule of Leasing Commissions attached hereto
as Exhibit D.

                9.4     CONSTRUCTION MANAGEMENT FEE. The Property Manager, or an
affiliate, shall receive, for its services in supervising any construction or
repair project in or about the Project, a construction management fee (the
"Construction Management Fee") equal to five percent (5%) of any amount
(including related professional services) that is expended for construction,
tenant improvement or repair projects.

                9.5     FINANCING FEE. The Property Manager, or an affiliate,
will receive from each Tenant in Common, a fee equal to 1.0% of the principal
amount of any loan obtained by or for the Tenants in Common; provided, however,
no separate financing fee shall be paid with respect to the original loan made
(or to be made immediately upon execution of this Agreement) by the Lender. This
fee will be payable to the Property Manager or its affiliate whether or not an
outside loan broker is used. The financing fee will be pro rated among the
Tenants in Common.

                9.6     SELLING COMMISSION. If, during the term of this
Agreement, the Tenants in Common determine to sell or exchange the Project, or
any portion thereof (including an undivided interest of a single Tenant in
Common in the event the Property Manager participates in such sale), the Tenants
in Common hereby grant the Property Manager, or an affiliate, for a 180-day
term, the right to participate in the marketing of the Project on terms
acceptable to the Tenants in Common. The Tenants in Common shall notify the
Property Manager in writing of the determination to sell or exchange, which
notification shall specify the commencement and termination date of such 180-day
term. If the Project is sold, exchanged or otherwise disposed of as a result of
offers received during such 180-day term, and the Property Manager participated
in the sale, a commission shall be paid by the Tenants in Common to the Property
Manager equal to two and one half percent (2 1/2%) of the sales price. In
addition to the foregoing, the Property Manager may at any time negotiate with
potential purchasers and submit offers to purchase to the Tenants in Common for
approval. If the Project is sold, exchanged or otherwise disposed of as a result
of any such offers, the Property Manager shall be entitled to a commission paid
by the Tenants in Common in an amount equal to two and one half percent (2 1/2%)
of the sales price. If another broker participates in the transaction, then the

                                       10
<PAGE>

Property Manager may cooperate with that broker, on terms and conditions
acceptable to the Property Manager and approved by the Tenants in Common, with
commissions to the other broker to be paid by the Tenants in Common.
Notwithstanding the above, if there is a broker fee paid to a third party
broker, the total commission paid to the Property Manager, or its affiliate, and
the third party broker shall not exceed two and one half percent (2 1/2%).

                9.7     APPLICATION OF FEES. Each Tenant in Common shall be
responsible for his or her percentage share, based on percentage ownership
interests in the Project, of all of the fees set forth in this Agreement.

                9.8     AFFILIATE OF BEHRINGER. Notwithstanding the provisions
of this Section 9, in the event that Behringer or any of its affiliates own an
interest in the Project and such party is subject to the National Association of
Security Dealers guidelines attributable to management fees, the fees charged to
such Tenant in Common shall not exceed the amount that is allowed to be paid
under such guidelines.

        10.     TERMINATION.

                10.1    TERMINATION BY THE TENANTS IN COMMON. This Agreement
shall terminate on December 31, 2025; provided, however, that this Agreement
shall terminate on December 31, 2004 and each anniversary of such date unless
all of the Tenants in Common consent to the extension of this Agreement pursuant
to Section 1.2.1.

                10.2    TERMINATION BY THE PROPERTY MANAGER.

                        10.2.1  The Property Manager shall have the right to
terminate this Agreement, provided that the Tenants in Common are in default in
the performance of any of their obligations hereunder, and such default remains
uncured for thirty (30) days following the Property Manager's giving of written
notice of such default to the Tenants in Common.

                        10.2.2  The Property Manager shall have the right to
terminate this Agreement for any reason upon 60 days written notice.

                10.3    FINAL ACCOUNTING. Within thirty (30) days after
termination of this Agreement for any reason, the Property Manager shall: (a)
deliver to the Tenants in Common a final accounting, setting forth the balance
of income and expenses on the Project as of the date of termination; (b)
transfer to any account indicated by the Tenants in Common any balance or monies
of the Tenants in Common or tenant security deposits held by the Property
Manager with respect to the Project (or transfer the accounts in which such sums
are held as instructed by the Tenants in Common); and (c) deliver to a
subsequent property manager or other agent indicated by the Tenants in Common
all materials and supplies, keys, books and records, contracts, leases, receipts
for deposits, unpaid bills and other papers or documents that pertain to the
Project. For a period of thirty (30) days after such expiration or cancellation
for any reason other than the Tenants in Common's default, the Property Manager
shall be available, through its senior executives familiar with the Project, to
consult with and advise the Tenants in Common or any person or entity succeeding
to the Tenants in Common as owner of the Project or such other person or persons
selected by the Tenants in Common regarding the operation and maintenance of the
Project. In addition, the Property Manager shall cooperate with the Tenants in
Common in notifying all tenants of the Project of the expiration and termination
of this Agreement, and shall use reasonable efforts to cooperate with the
Tenants in Common to accomplish an orderly transfer of the operation and
management of the Project to a party designated by the Tenants in Common. The
Property Manager shall receive its monthly Management Fee for such services. The
Property Manager shall, at its cost and expense, promptly remove all signs
wherever located indicating that it is the Property Manager and replace and
repair any damage resulting therefrom. Termination of this Agreement shall not
release either party from liability for failure to perform any of the duties or
obligations as expressed herein and required to be performed by such party for
the period before the termination.

        11.     CONFLICTS. The Property Manager shall not deal with or engage,
or purchase goods or services from, any subsidiary or affiliated company of the
Property Manager in connection with the management of the Project for amounts
above market rates.

                                       11
<PAGE>

        12.     NOTICES. Any notice to be given or other document or payment to
be delivered by any party to any other party hereunder may be delivered in
person, or may be deposited in the United States mail, with postage prepaid, or
by Federal Express or other similar overnight delivery service, and addressed to
the party for whom intended, as follows:

                To the Property Manager at:

                Behringer Harvard TIC Management Services LP
                1323 North Stemmons Freeway
                Suite 220
                Dallas, Texas 75207

                To the Tenants in Common at:

                c/o Behringer Harvard Enclave H LP
                1323 North Stemmons Freeway
                Suite 221
                Dallas, Texas 75207

                With a copy to the Tenants in Common at the addresses specified
                on Exhibit "A" of the Tenants in Common Agreement.

Any party hereto may from time to time, by written notice to the others,
designate a different address which shall be substituted for the one above
specified. Unless otherwise specifically provided for herein, all notices,
payments, demands or other communications given hereunder shall be in writing
and shall be deemed to have been duly given and received (i) upon personal
delivery, or (ii) as of the third business day after mailing by United States
registered or certified mail, postage prepaid, addressed as set forth above, or
(iii) the immediately succeeding business day after deposit with Federal Express
or other similar overnight delivery system.

        13.     MISCELLANEOUS.

                13.1    ASSIGNMENT. The Property Manager may not assign this
Agreement without the prior written consent of the Tenants in Common, except
with respect to an assignment to an affiliate, including, but not limited to a
wholly-owned subsidiary, which shall be permissible under this Agreement, which
consent may be withheld in the Tenants in Common's sole and absolute discretion;
provided, however, that the Property Manager may assign or delegate (a) the
day-to-day management responsibilities to a nationally recognized property
manager with a local presence, (b) leasing services to a party with local
leasing expertise, and/or (c) disposition services to a party with recognized
expertise in dispositions of properties of a type similar to the Project, in
each case so long as the Property Manager continues to supervise the overall
management of the Project and provide other customary asset management services.
Subject to the Tenants in Common Agreement, a Tenant in Common may assign its
rights under this Agreement to a party acquiring its undivided interest
("Successor Tenant in Common"). A Successor Tenant in Common shall take such
interest subject to this Agreement, and the Tenant in Common and Successor
Tenant in Common shall execute an agreement whereby (i) the assigning Tenant in
Common assigns to the Successor Tenant in Common all of its right, title and
interest in and to this Agreement; and (ii) the Successor Tenant in Common
assumes and agrees to perform faithfully and to be bound by all of the terms,
covenants, conditions, provisions and agreements of this Agreement with respect
to the undivided interest to be transferred. Upon execution of such assignment
and assumption agreement, the assigning Tenant in Common shall be relieved of
all liability accruing after the effective date of the assignment and, without
further action by the Property Manager or the other Tenants in Common, the
Successor Tenant in Common shall become a party to this Agreement.

                13.2    GENDER. Each gender shall include each other gender. The
singular shall include the plural and vice-versa.

                13.3    AMENDMENTS. Except as otherwise provided, each
amendment, addition or deletion to this Agreement shall not be effective unless
approved by the parties in writing.

                                       12
<PAGE>

                13.4    ATTORNEYS' FEES. In any action or proceeding between the
Property Manager and the Tenants in Common arising from or relating to this
Agreement or the enforcement or interpretation hereof, the party prevailing in
such action or proceeding shall be entitled to recover from the other party all
of its reasonable attorneys' fees and other costs and expenses of the action or
proceeding.

                13.5    GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Texas without
regard to any choice of law rules.

                13.6    VENUE. Any action relating to or arising out of this
Agreement shall be brought only in a court of competent jurisdiction located in
Dallas, Texas.

                13.7    HEADINGS. All headings are only for convenience and ease
of reference and are irrelevant to the construction or interpretation of any
provision of this Agreement.

                13.8    REPRESENTATIONS. The Property Manager represents and
warrants that it is fully qualified and licensed, to the extent required by law,
to manage and lease real estate and perform all obligations assumed by the
Property Manager hereunder. The Property Manager shall use reasonable efforts to
comply with all such laws now or hereafter in effect.

                13.9    INDEMNIFICATION BY THE PROPERTY MANAGER.

                        13.9.1  The Property Manager shall indemnify, defend and
hold the Tenants in Common and their shareholders, officers, directors, and
employees harmless from any and all claims, demands, causes of action, losses,
damages, fines, penalties, liabilities, costs and expenses, including reasonable
attorneys' fees and court costs, sustained or incurred by or asserted against
the Tenants in Common by reason of the acts of the Property Manager which arise
out of the gross negligence, willful misconduct or fraud of the Property
Manager, its agents or employees or the Property Manager's breach of this
Agreement. If any person or entity makes a claim or institutes a suit against
the Tenants in Common on a matter for which the Tenants in Common claim the
benefit of the foregoing indemnification, then (a) the Tenants in Common shall
give the Property Manager prompt notice thereof in writing; (b) the Property
Manager may defend such claim or action by counsel of its own choosing provided
such counsel is reasonably satisfactory to the Tenants in Common; and (c)
neither the Tenants in Common nor the Property Manager shall settle any claim
without the other's written consent.

                        13.9.2  The Property Manager acknowledges that the
Tenants in Common have or will be entering into loan documents, which may
include provisions for personal liability for the Tenants in Common on certain
"nonrecourse carve-outs." The Property Manager hereby agrees that to the extent
that the Tenants in Common are required to make payments on such indemnification
as a direct result of (i) the Property Manager's fraud, willful misconduct or
misappropriation, (ii) the Property Manager's commission of a criminal act,
(iii) the misapplication by Property Manager of any funds derived from the
Project received by the Property Manager, including any failure to apply such
proceeds in accordance with the requirements of any existing loan documents
applicable to the Project, or (iv) damage or destruction to the Project caused
by acts of the Property Manager that are grossly negligent, the Property Manager
will indemnify the Tenants in Common for any such liability that was caused by
such actions.

                13.10   INDEMNIFICATION BY THE TENANTS IN COMMON. The Tenants in
Common shall indemnify, defend and hold the Property Manager and its
shareholders, officers, directors and employees harmless from any and all
claims, demands, causes of action, losses, damages, fines, penalties,
liabilities, costs and expenses, including reasonable attorneys' fees and court
costs, sustained or incurred by or asserted against the Property Manager by
reason of the operation, management, and maintenance of the Project and the
performance by the Property Manager of the Property Manager's obligations under
this Agreement but only to the extent of each Tenants in Common's interest in
the Project, except those which arise from the Property Manager's gross
negligence, willful misconduct or fraud. If any person or entity makes a claim
or institutes a suit against the Property Manager on matter for which the
Property Manager claims the benefit of the foregoing indemnification, then (a)
the Property Manager shall give the Tenants in Common prompt notice thereof in
writing; (b) the Tenants in Common may defend such claim or action by counsel of
their own choosing provided such counsel is reasonably satisfactory to the
Property Manager; (c) neither the Property Manager nor the Tenants in Common
shall settle any claim without the other's written

                                       13
<PAGE>

consent; and (d) this subsection shall not be so construed as to release the
Tenants in Common or the Property Manager from any liability to the other for a
breach of any of the covenants agreed to be performed under the terms of this
Agreement.

                13.11   COMPLETE AGREEMENT. This Agreement shall supersede and
take the place of any and all previous agreements entered into between the
parties with respect to the Project.

                13.12   SEVERABILITY. If any provisions of this Agreement or
application to any party or circumstances shall be determined by any court of
competent jurisdiction to be invalid and unenforceable to any extent, the
remainder of this Agreement, where the application of such provisions or
circumstances other than those as to which it is determined to be invalid or
unenforceable shall not be affected thereby, and each provision hereof shall be
valid and shall be enforced to the fullest extent permitted by law.

                13.13   NO WAIVER. The failure by either party to insist upon
the strict performance of or to seek remedy of any one of the terms or
conditions of this Agreement or to exercise any right, remedy, or election set
forth herein or permitted by law shall not constitute or be construed as a
waiver or relinquishment for the future of such term, condition, right, remedy
or election, but such item shall continue and remain in full force and effect.
All rights or remedies of the parties specified in this Agreement and all other
rights or remedies that they may have at law, in equity or otherwise shall be
distinct, separate and cumulative rights or remedies, and no one of them,
whether exercised or not, shall be deemed to be in exclusion of any other right
or remedy of the parties.

                13.14   BINDING EFFECT. This Agreement shall be binding and
inure to the benefit of the parties and their respective successors and assigns.

                13.15   ENFORCEMENT OF THE PROPERTY MANAGER'S RIGHTS. In the
enforcement of its rights under this Agreement, the Property Manager shall not
seek or obtain a money judgment or any other right or remedy against any
shareholders or disclosed or undisclosed principals of the Tenants in Common.
The Property Manager shall enforce its rights and remedies solely against the
estate of the Tenants in Common in the Project or the proceeds of any sale of
all or any portion of the Tenants in Common's interest therein.

                13.16   COUNTERPARTS. This Agreement may be executed in several
counterparts, and all so executed shall constitute one Agreement, binding on all
of the parties hereto, notwithstanding that all of the parties are not signatory
to the original or the same counterpart.

                                       14
<PAGE>

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

                          PROPERTY MANAGER:

                          Behringer Harvard TIC Management Services LP, a Texas
                          limited partnership

                          By:  Behringer Harvard TIC MS GP, Inc., its General
                               Partner

                          By:  /s/ Gerald J. Reihsen, III
                             ---------------------------------------------------
                               Gerald J. Reihsen, III, Secretary

                          TENANTS IN COMMON:

                          Behringer Harvard Enclave S LP, a Texas limited
                          partnership

                          By:  Behringer Harvard Enclave S GP, LLC
                               its General Partner

                          By:  /s/ Gerald J. Reihsen, III
                             ---------------------------------------------------
                               Gerald J. Reihsen, III, Secretary

                          Behringer Harvard Enclave H LP, a Texas limited
                          partnership

                          By:  Behringer Harvard Enclave H GP, LLC
                               its General Partner

                          By:  /s/ Gerald J. Reihsen, III
                             ---------------------------------------------------
                               Gerald J. Reihsen, III, Secretary

                                       15

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