Delayed Hearing Notice - 11-28-2008

The following is an important message from Stephen Burr, counsel for DBSI, and is intended only for Tenant-in-Common owners who are not represented by counsel.

The attorneys representing groups of Tenant-in-Common owners (TICs) and the Creditors Committee have made it clear that they require more time to deal with the decisions which would otherwise have to be made by the TICs by December 2, 2008. In response to these requests, we have decided to change the subject matter of the December 2nd hearing, and defer the rejection/amendment/assignment Lease issue until a hearing now scheduled for December 30, 2008. We encourage you to continue the decision making process prior to December 2nd, particularly as to the waiver of administrative claim, as there is some risk that the Judge will not allow us the additional time. However, it seems likely that the Judge will grant our request. What we will be asking the Court to do the following on December 2nd:

1. As to properties that have special purpose entities as master lessees (i.e., not DBSI Housing or DBSI Master Leaseco) our request will simply be to delay the hearing until December 30th; and

2. As to the remaining properties that have DBSI Housing or DBSI Master Leaseco as master lessee, we will change our motion to a Nunc Pro Tunc motion (i.e. a motion to take an action effective as of a certain date but not operative until a subsequent hearing ).

The December 2nd hearing will remain on the schedule to deal with other pending issues. A formal notice regarding the December 2nd hearing and a list of changes should be available soon.

Depending on how the cash motions come out, we will make every effort to pay critical operating expenses and debt service in December to the extent of cash coming into the operating accounts on the individual properties.

DBSI Lease Rejection – Important SharePoint Documents & Audio Recording – 11-20-08

These documents only apply to TIC owners of DBSI Master Lease or NNN Plus® Lease properties. The documents are regarding the letter that was sent to you with instructions about your important decision that must be made by December 1st. The documents listed below include all of the documents that are also posted to your secure SharePoint website. Please make sure to listen to the audio recording and review the FAQ document before your scheduled conference call which is only posted to your secure SharePoint website.

Part of the following audio message, is from Stephen Burr of Foley & Lardner, who is legal counsel to DBSI. It is not intended for investors who have retained counsel. If you or your property group have retained counsel, please hang up/press stop and contact your counsel. Mr. Burr has given any information included in this message to your counsel. If you or your property group have not retained counsel, you may listen to this message for information, but we strongly recommend that you or your property group seek your own legal counsel immediately, as there are urgent decisions that you must make. You can put your counsel in touch with Mr. Burr at SBurr@Foley.com.

Audio Recording:


To download the message to your computer, right click here and select "Save Target As..".

Documents:
Amended and Restated Lease Agreement
Amended Lease Abstract
Assumption and Assignment of Lease and Subleases Agreement
Cover Letter to All TIC Owners - Lease Rejection Modification
DBSI - Admin Waiver for Lease Rejection Alt Motion_Amended Lease
DBSI - Admin Waiver for Lease Rejection Alt Motion_Lease Assignment
DBSI - Admin Waiver for Lease Rejection Alt Motion_potential Lease Assignment or Lease Amendment
Durable Power of Attorney
FAQ - Lease Rejections - 11.19.08
Group Leaders Instruction Sheet