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                                                                   Exhibit 10.31

                                                                        Post Oak
                                                                  Houston, Texas

                           PURCHASE AND SALE AGREEMENT

      THIS PURCHASE AND SALE AGREEMENT (this "Agreement"), made to be effective
as of November 10, 2004 (the "Effective Date"), between CRESCENT REAL ESTATE
FUNDING X, L.P., a Delaware limited partnership, having an office at 777 Main
Street, Suite 2100, Fort Worth, Texas 76102-5325 ("Seller"), and CRESCENT POC
INVESTORS, L.P., a Delaware limited partnership, having an office c/o J.P.
Morgan Investment Management Inc., 522 Fifth Avenue, New York, New York 10036
("Purchaser"); each a "Party" and, collectively, the "Parties." In addition,
Crescent Real Estate Equities Limited Partnership, a Delaware limited
partnership ("Crescent") has executed this Agreement solely for the purposes of
Article 6, Article 7, Article 13, Article 16 and Article 17 hereof.

      WHEREAS, Seller owns fee simple title in and to all of that certain tract
or parcel of land situated in Houston, Harris County, Texas, being more
particularly described on Exhibit A attached hereto and made a part hereof for
all purposes (the "Land"), together with all improvements, structures (including
the parking garages) and fixtures located on the Land (collectively, the
"Improvements"); and

      WHEREAS, subject to the terms and conditions set forth herein, Seller
desires to sell and Purchaser desires to purchase (a) all of the Land and the
Improvements, and (b) all other rights and interests pertaining thereto as more
particularly described in Section 2.1 hereinafter.

      NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree to the
following:

                                   ARTICLE 1.
                              CERTAIN DEFINITIONS.

      For purposes of this Agreement, the following terms shall have the
respective meanings set forth below:

      "Actions" mean any claims, actions, suits, demands, proceedings or
investigations, whether at law or in equity or before any court, arbitrator,
arbitration panel or Governmental Body.

      "Additional Rent" has the meaning ascribed to such term in Section 11.2 of
this Agreement.

      "Affiliate" of a party means any Person that, directly or indirectly,
controls, is controlled by or is under common control with, such party. For
purposes of this Agreement the term "control" means the possession, directly or
indirectly, of the power to decide, affirmatively (by

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direction) or negatively (by veto), the management and policies of a Person,
whether through ownership and voting securities, by contract or otherwise.

      "Agreement" has the meaning ascribed to such term in the Introductory
Paragraph.

      "Ancillary Agreement" means each Purchaser Ancillary Agreement and Seller
Ancillary Agreement.

      "Base Rents" has the meaning ascribed to such term in Section 11.2 of this
Agreement.

      "Adjoining Land" means any land owned by Seller, or in which the Seller
otherwise has an interest, lying in the bed of any street, road, avenue, open or
proposed, public or private, in front of or adjoining the Land or any portion
thereof, and any award to be made in lieu thereof and in and to any unpaid award
for damage to the Land or the Improvements by reasons of change of grade of any
street occurring after the Effective Date.

      "Agreement Estoppel" means that certain Agreement Estoppel Certificate
(Brochsteins & Ambassador Owners) in the form of Exhibit O.

      "Closing" means the closing of the transactions contemplated hereby, which
shall take place at the offices of the Escrow Agent or through escrow pursuant
to an escrow agreement mutually agreeable to the Parties on the Closing Date at
10:00 A.M., or at such other time or place as the parties may agree upon in
writing.

      "Closing Date" means November 10, 2004. The Parties acknowledge and agree
that the Closing Date and the Effective Date are the same date; it is the
Parties' intention that the transactions contemplated herein are to be
consummated on a "sign and close" basis on such date. In this Agreement,
reference is generally made to such date as the "Closing Date" in the context of
provisions that address the Closing.

      "Code" means the Internal Revenue Code of 1986, as amended and the rules
and regulations promulgated thereunder.

      "Commitment" has the meaning ascribed to such term in Section 4.1.1 of
this Agreement.

      "Crescent" has the meaning ascribed to such term in the Introductory
Paragraph of this Agreement.

      "Damages" mean all actual losses, liabilities, costs, damages, claims and
expenses (including reasonable attorneys' fees and disbursements through
appeal).

      "Default" means (i) a breach of or default under any contract, agreement,
covenant, document or other instrument, or (ii) the occurrence of an event which
with the passage of time or the giving of notice, or both, would constitute a
breach of or default under any such contract, agreement, covenant, document or
other instrument, or (iii) the occurrence of an event that with or without the
passage of time or the giving of notice, or both, would give rise to a right of
termination or acceleration under any such contract, agreement, covenant,
document or other instrument.

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      "Easement and Right-of-Way Agreement Estoppel" means that certain Easement
and Right-of-Way Agreement Certificate (For Tract II) in the form of Exhibit M.

      "Environmental Laws" mean all federal, state, local and foreign
environmental, health and safety Laws including, without limitation Laws
relating to emissions, discharge, releases or threatened releases of pollutants,
contaminants, chemicals, or industrial, toxic or hazardous substances into the
environment (including, without limitation, air, surface water, ground water,
land surface or subsurface strata) or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling of pollutants, contaminants, chemicals, or industrial, solid, toxic or
hazardous substances. As used in this Agreement, the term "Hazardous Substances"
includes, without limitation, (i) all substances which are designated pursuant
to Section 311(b)(2)(A) of the Federal Water Pollution Control Act ("FWPCA"), 33
U.S.C. Section 1251 et seq.; (ii) any element, compound, mixture, solution, or
substance which is designated pursuant to Section 102 of the Comprehensive
Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C.
Section 9601 et seq.; (iii) any hazardous waste having the characteristics which
are identified under or listed pursuant to Section 3001 of the Resource
Conservation and Recovery Act ("RCRA"), Section 6901 et seq.; (iv) any toxic
pollutant listed under Section 307(a) of the FWPCA; (v) any hazardous air
pollutant which is listed under Section 112 of the Clean Air Act, 42 U.S.C.
Section 7401 et seq.; (vi) any imminently hazardous chemical substance or
mixture with respect to which action has been taken pursuant to Section 7 of the
Toxic Substance Control Act, 15 U.S.C. Section 2601 et seq.; and (vii)
petroleum, petroleum products, petroleum by-products, petroleum decomposition
by-products, and waste oil; (viii) "hazardous materials" within the meaning of
the Hazardous Materials Transportation Act, 49 U.S.C. Section 1802 et seq.; (ix)
any hazardous substance or material identified or regulated by or under any
applicable provisions of the laws of the state in which any portion of the
Property is located; (x) asbestos or any asbestos containing materials; (xi) any
radioactive material or substance; (xii) all toxic wastes, hazardous wastes and
hazardous substances as defined by, used in, controlled by or subject to all
implementing regulations adopted and publications promulgated pursuant to the
foregoing statutes; and (xiii) any other hazardous or toxic substance or
pollutant identified in or regulated under any other applicable federal, state
or local Laws.

      "Exxon Pipeline Estoppel" means that certain Exxon Pipeline Estoppel
Certificate in the form of Exhibit L.

      "Governmental Body" means any agency, instrumentality, department,
commission, court, tribunal or board of any government, whether foreign or
domestic and whether national, federal, state, provincial or local.

      "Grant of Easement Estoppel" means that certain Grant of Easement Estoppel
Certificate (For Tract III) in the form of Exhibit N.

      "Guarantees" means all guarantees, agreements and undertakings of any
Guarantor in connection with the Tenant Leases (individually, a "Guaranty").

      "Guarantor" means any guarantor under any existing Guaranty of any Tenant
Lease.

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      "Hazardous Discharge" has the meaning ascribed to such term in Section
5.1.2(n) of this Agreement.

      "Houston Center Contract" means that certain Purchase and Sale Agreement
of even date herewith between Crescent, as the seller thereunder, and Crescent
HC Investors, L.P., an Affiliate of Purchaser, as the purchaser thereunder,
relating to the land and improvements commonly known as Houston Center in
Houston, Harris County, Texas.

      "Intangible Personal Property" shall mean all right, title and interest of
Seller in and to all telephone numbers listed after the name of the Property,
and all other items of intangible personal property owned by Seller and utilized
principally in connection with the operation of the Property (except for items
of intangible personal property that are otherwise the subject of other defined
terms set forth in this Agreement).

      "Law" or "Laws" mean laws, statutes, rules, regulations, codes, orders,
ordinances, judgments, injunctions, or decrees.

      "Lehman" means Lehman Brothers Holdings, Inc.

      "License Agreements" means all agreements (written or oral) in the nature
of licenses to which Seller is a party or is bound affecting any portion of the
Property all which are set forth in Schedule 5.1.2(d) annexed hereto and made a
part hereof.

      "Lien" means any security interest, lien, mortgage, claim, charge, pledge,
restriction, equitable interest, restrictive covenant or encumbrance of any
nature.

      "Major Lease" means any Tenant Lease with respect to which the Tenant
thereunder is a Major Tenant.

      "Major Tenant" means those Tenants identified as such on Schedule 5.1.2(d)
attached hereto.

      "Overage Rent" has the meaning ascribed to such term in Section 11.1 of
this Agreement.

      "Permits" has the meaning ascribed to such term in Section 2.1.6 of this
Agreement.

      "Person" means any natural person, corporation, business trust, joint
venture, association, company, limited liability entity, firm, partnership, or
other entity or Governmental Body.

      "Purchaser Ancillary Agreement" means each agreement or other instrument
executed or to be executed in connection with this Agreement by Purchaser or an
Affiliate of Purchaser, including The Crescent Contract, the Houston Center
Contract and all Closing documentation executed by Purchaser or an Affiliate of
Purchaser in connection therewith.

      "Rents" has the meaning ascribed to such term in Section 11.1 of this
Agreement.

      "Reports" means the environmental reports and other written materials
listed in Exhibit H attached hereto and made a part hereof.

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      "Security Deposits" means all security deposits and other deposits (in the
form of cash, letters of credit or otherwise) required to be deposited with
Seller pursuant to the Tenant Leases.

      "Seller Ancillary Agreement" means each agreement or other instrument
executed or to be executed in connection with this Agreement by Seller or an
Affiliate of Seller, including The Crescent Contract, the Houston Center
Contract and all Closing documentation executed by Seller or an Affiliate of
Seller in connection therewith.

      "SPF" means JPMorgan Chase Bank, as Trustee under Amended and Restated
Declaration of Trust, dated November 13, 2001, as amended, for its Commingled
Pension Trust Fund (Strategic Property).

      "Subleases" means all leases executed by the Tenants or their
predecessors-in-interest to a third party for all or a portion of the space
demised under such Tenants' Lease, all of which are set forth in Schedule
5.1.2(d) attached hereto and made a part hereof.

      "Tenants" (or singularly, a "Tenant") means the tenants under the Tenant
Leases.

      "Tenant Leases" means all agreements (written or oral) in the nature of
space leases, lettings, concessions or occupancy agreements, and all amendments,
modifications, supplements, additions, extensions, renewals and side letters
thereof or thereto, affecting the Land or the Improvements.

      "The Crescent Contract" means that certain Contribution Agreement of even
date herewith between Crescent Real Estate Funding I, L.P., an Affiliate of
Seller, and Crescent TC Investors, L.P., an Affiliate of Purchaser, relating in
part to the land and improvements commonly known as The Crescent in Dallas,
Dallas County, Texas.

      "Title Estoppels" means collectively the Exxon Pipeline Estoppel, Easement
and Right-of-Way Agreement Estoppel, Grant of Easement Estoppel and Agreement
Estoppel.

      "UCC Releases" means release of each of the liens found per the UCC
Searches, as defined in Section 4.1.3 hereinafter, as set forth in Exhibit P.

                                   ARTICLE 2.
                              SALE OF THE PROPERTY.

      Section 2.1. Property. For the consideration and upon and subject to the
terms, provisions and conditions of this Agreement, Seller agrees to sell to
Purchaser, and Purchaser agrees to purchase from Seller, all of Seller's right,
title and interest in and to all of the following described property
(collectively, the "Property"):

            2.1.1 Seller's fee simple title in and to all of the Land (and, if
applicable, any Adjoining Land), together with all of the Improvements located
thereon, and all rights, titles and interests of Seller appurtenant to the Land
and Improvements, including, without limitation, (i) all minerals, oil, gas and
other hydrocarbon substances thereon or thereunder, (ii) all easements,
privileges and hereditaments, whether or not of record, (iii) all gaps, gores,
adjacent strips, adjacent roads, streets, highways, alleys and rights-of-way
(both public or private, open or

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proposed), (iv) any awards for damage to the Property by reason of a change of
grade of any road, street, highway, alley, or right-of-way, (v) any condemnation
awards made or to be made in lieu thereof, and (vi) all access, air, water,
riparian, development, utility (including sanitary and storm sewer capacity or
reservations or rights under utility agreements) and solar rights and all income
therefrom;

            2.1.2 All fixtures, furnishings, furniture, equipment, machinery,
inventory, appliances and other personal property owned by Seller, located at or
used in connection with the Land and Improvements, including, without
limitation, (1) all mechanical systems, fixtures and equipment comprising a part
of or attached to or located upon the Land and Improvements, (2) all maintenance
equipment and tools owned by Seller and used in connection with the Land and
Improvements, (3) all site plans, surveys, plans and specifications, marketing
materials and floor plans in Seller's possession which relate solely to the
Improvements and no other premises, (4) all pylons and other signs, and (5) all
other personal property of every kind and character owned by Seller and located
in or on or used in connection with the Land and Improvements or the operations
thereon, (collectively, the "Personalty"), which items are listed on Schedule
5.1.2(aa) attached hereto. Notwithstanding anything to the contrary contained
herein, it is expressly agreed by the Parties that any fixtures, furniture,
furnishings, equipment or other personal property owned or leased (from a party
other than Seller) by any tenant, managing agent, leasing agent, contractor, or
employee, shall not be included in the Property to be sold to Purchaser
hereunder;

            2.1.3 The Tenant Leases and Security Deposits, the License
Agreements and the Guaranties,

            2.1.4 All of Seller's rights, titles and interests as lessee under
any leases;

            2.1.5 All service, management and maintenance contracts and other
contracts, reciprocal easement agreements, development agreements, concession
agreements and operating agreements all as listed on Schedule 5.1.2(q) relating
to the ownership and operation of the Property (collectively, the "Operating
Agreements"), and warranties, guaranties and bonds in effect at Closing and
listed on Schedule 5.1.2(v) attached hereto and by this reference made a part
hereof (the "Warranties") relating to the Land, the Improvements or the
Personalty, to the extent the same are assignable;

            2.1.6 All permits, licenses, certificates of occupancy and
governmental approvals, if any, which relate to the Land, Improvements,
Personalty, Operating Agreements or Tenant Leases (the "Permits");

            2.1.7 The Intellectual Property (hereinafter defined) used solely in
connection with the operation of the Property; excluding any Intellectual
Property to which Seller is restricted from granting such a license or for which
consent is required and not obtained (provided, that Seller agrees to use
commercially reasonable efforts to obtain any such required consent). For the
purposes hereof, "Intellectual Property" means any of the following which are
used by Seller in connection with the Property: (i) trademarks, service marks,
trade dress, logo name, trade names, domain name, registrations, designations
(including without limitation the name "Post Oak Central" and any variations
thereof) but excluding any Crescent or Crescent-derivative

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trademark, service mark, trade dress or logo, (ii) copyrights, (iii) trade
secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production
processes and techniques, methods, schematics, technology, technical data,
designs, drawings, flowcharts, block diagrams, specifications, customer and
supplier lists, pricing and cost information and business and marketing plans
and proposals), (iv) computer software (including data and related
documentation), (v) patents, and (vi) licenses, sublicenses, agreements, or
permissions related to any of the foregoing;

            2.1.8 The Intangible Personal Property; and

            2.1.9 To the extent transferable, all other rights owned by Seller
and necessary to or used exclusively in connection with the ownership,
maintenance or operation of the items set forth in subsections 2.1.1 through
2.1.8 above.

      Section 2.2. The Parties acknowledge and agree that the value of the
Personalty is de minimis and that no part of the Purchase Price (hereinafter
defined) is allocable thereto. Although it is not anticipated that any sales tax
shall be due and payable, Purchaser agrees that Purchaser shall pay to the
applicable Governmental Body any and all sales and/or compensating use taxes
imposed upon or due solely by reason of the transactions contemplated hereunder
under any applicable Law. Purchaser shall file all necessary tax returns with
respect to all such taxes and, to the extent required by applicable Law, Seller
will join in the execution of any such tax returns. The provisions of this
Section 2.2 shall survive the Closing.

                                   ARTICLE 3.
                           PAYMENT OF PURCHASE PRICE.

      Section 3.1. The Purchase Price (herein so called) to be paid by Purchaser
to Seller for the Property shall be $147,500,000. The Purchase Price, plus or
minus prorations and adjustments as provided in this Agreement, shall be paid by
Purchaser to Seller at Closing by wire transfer of Current Funds (hereinafter
defined) to an account or accounts designated in writing by Crescent not less
than two (2) business days prior to the Closing Date. As used in this Agreement,
"Current Funds" means wire transfers of immediately available funds, certified
funds or a cashier's check in a form acceptable to the Escrow Agent (hereinafter
defined) which would permit the Title Company to promptly disburse such funds.

                                   ARTICLE 4.
                           TITLE; DUE DILIGENCE REVIEW

      Section 4.1. The Parties acknowledge and agree that prior to the Effective
Date, Purchaser has received, and has had an opportunity to review, the
following:

            4.1.1 (i) from Fidelity National Title Insurance Company, Attention:
Pat Noska, 717 N. Harwood Street, Suite 800, Dallas, Texas 75201, Telephone:
(214) 220-1829, Fax: (214) 969-5348 (the "Escrow Agent"), as authorized agent
for Fidelity National Title Insurance Company ("Fidelity"), G.F. No. 04-01-5205
bearing an issue date of October 29, 2004 (Revision #8); (ii) from Stewart Title
Guaranty Company, Attention: Jim Putnam, 1980 Post Oak Boulevard, Suite 110,
Houston, Texas 77056, Telephone: (713) 625-8700, Fax: (713) 629-2255, as
authorized agent for Stewart Title Guaranty Company ("Stewart"), File No.
04117541;

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(iii) from Chicago Title Insurance Company, Attention: Kay Starkey, 2001 Bryan
Street, Suite 1700, Dallas, Texas 75201, Telephone: (214) 965-1686, Fax: (214)
965-1622, as authorized agent for Chicago Title Insurance Company ("Chicago"),
G.F. No. 2104-01209-FKS, Commitment No. 44-903-80-653195C; and (iv) from
Republic Title of Texas, Inc., Attention: C. Richard White, 2626 Howell Street,
10th Floor, Dallas, Texas 75204, Telephone: (214) 855-8868, Fax: (214) 855-8848,
as authorized agent for First American Title Insurance Company ("First
American"), G.F. No. 04R16452A SJ3 (the foregoing, collectively, the "Title
Company"), four (4) title insurance commitments (collectively, the "Commitment")
pertaining to the Land, and binding Fidelity to issue to Purchaser at Closing on
a co-insurance basis an Owner's Policy of Title Insurance (the "Fidelity Owner
Title Policy") in the amount of $73,750,000 (the "Fidelity Owner Title Policy
Amount"); binding Stewart to issue to Purchaser at Closing on a co-insurance
basis an Owner's Policy of Title Insurance (the "Stewart Owner Title Policy") in
the amount of $29,500,000 (the "Stewart Owner Title Policy Amount"); binding
First American to issue to Purchaser at Closing on a co-insurance basis an
Owner's Policy of Title Insurance (the "First American Owner Title Policy") in
the amount of $29,500,000 (the "First American Owner Title Policy Amount"); and
binding Chicago to issue to Purchaser at Closing on a co-insurance basis an
Owner's Policy of Title Insurance (the "Chicago Owner Title Policy" and,
together with the Fidelity Owner Title Policy, the Stewart Owner Title Policy
and the First American Owner Title Policy, collectively, the "Owner Title
Policy") in the amount of $14,750,000 (the "Chicago Owner Title Policy Amount"
and, together with the Fidelity Owner Title Policy Amount, the Stewart Owner
Title Policy Amount and the First American Owner Title Policy Amount,
collectively, the "Owner Title Policy Amount"); together with copies of
instruments or documents (the "Exception Documents") creating or evidencing
conditions or exceptions to title affecting the portion of the Land that is the
subject thereof, as described in the Commitment;

            4.1.2 A copy of the most current on the ground survey for the Land
in Seller's possession, dated November 3, 2004, last revised November 5, 2004,
Project No.0048-9701-S, prepared by Ernest Roth, R.P.L.S. No. 2044, of Terra
Surveying Co., Inc., a surveyor licensed by the State of Texas (the "Survey");

            4.1.3 Searches of the Uniform Commercial Code Records of Harris
County, Texas, as well as a search of the Secretary of State of the State of
Texas, with respect to Seller (and the Secretary of State of the State of
Delaware with respect to the formation of Seller) under the name of Seller (the
"UCC Searches") dated within 60 days of the Effective Date hereof;

            4.1.4 Litigation searches of Seller from county courts in Harris
County, Texas, the state district courts of Harris County, Texas and federal
courts in the Southern District of Texas, Houston Division (the "Litigation
Searches"); and

            4.1.5 Searches of the Real Property Records of Harris County, Texas
under the name of Seller with respect to federal and state tax liens and
judgment liens (the "Lien Searches").

      The costs associated with the Survey, the UCC Searches, the Litigation
Searches and the Lien Searches shall be paid by Seller. Subject to the terms and
conditions set forth in this Agreement, Purchaser hereby approves the Commitment
(including the Exception Documents

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pertaining thereto), the Survey, the UCC Searches, the Litigation Searches and
the Lien Searches.

      Section 4.2. At Closing, the Title Company shall issue to Purchaser the
Owner Title Policy for the Land as specified in the Commitment, with such
endorsements as the Parties may direct, dated no earlier than the date of the
filing of the Deed described in Section 9.1.1 hereof, insuring Purchaser's title
to the Land in the amount of the Owner Title Policy Amount, subject to the
Permitted Exceptions (hereinafter defined). For the purposes hereof, the term
"Permitted Exceptions" shall mean and refer to (i) the title encumbrances,
exceptions or other matters set forth in Exhibit G attached hereto, which are
reflected in the Commitment (but excluding those matters which are expressly
identified below as Non-Permitted Exceptions to Title); (ii) the rights of the
Tenants under Tenant Leases listed in Exhibit G as Tenants only without any
option or right of first offer or refusal to purchase; and (iii) taxes and
assessments for the year in which Closing occurs and subsequent years.
Notwithstanding anything to the contrary herein, Seller agrees that there shall
be no Liens affecting the Land or Improvements at the time of Closing, and
Seller shall satisfy any and all such Liens prior to or concurrently with the
Closing (the "Non-Permitted Exceptions to Title"). With respect to the costs
associated with the Commitment, the Owner Title Policy to be issued in
connection therewith, and any mortgagee title insurance policy (a "Mortgagee
Policy") relating to a New Loan (hereinafter defined), including in each
instance, without limitation, the cost of reinsurance and endorsements, the
Parties agree that the payment of such costs, together with the title insurance
costs under The Crescent Contract and the Houston Center Contract shall be
allocated among Purchaser and its Affiliates and Seller and its Affiliates as
follows: Seller, 41.9%; Purchaser, 58.1%.

      Section 4.3.

            4.3.1 The parties acknowledge and agree that, during the period
between July 22, 2004 and the Effective Date (the "Due Diligence Period"),
Purchaser had an opportunity to perform its due diligence review of the
Property. Purchaser acknowledges that certain written information has been made
available by Seller to Purchaser in the disclosure schedules attached hereto or
posted on the "Client Connect" website maintained by Haynes and Boone, LLP under
the heading "Post Oak Central - Due Diligence," on behalf of Seller and its
Affiliates, at least three (3) business days prior to the Closing Date
(collectively, the "Due Diligence Information"). Subject to the terms and
conditions set forth in this Agreement, Purchaser has determined that the
Property is satisfactory and feasible for its intended use.

            4.3.2 The Parties acknowledge that the Due Diligence Information
which Seller has made available to Purchaser includes certain documents and
other information pertaining to the Property prepared by third parties other
than Seller or an Affiliate of Seller (the "Third Party Property Information").
Except as otherwise expressly provided herein, Seller expressly disclaims any
and all liability for representations or warranties, express or implied,
statements of fact and other matters contained in the Third Party Property
Information, or in any other written or oral communications transmitted or made
available to Purchaser, which has been prepared by third parties other than
Seller or an Affiliate of Seller. With respect to the Property, Purchaser shall
rely solely upon (a) Purchaser's due diligence review of the Property, and (b)
the express warranties and representations of Seller set forth in this Agreement
pertaining to the Property, including, without limitation, the Property's
physical, environmental or economic condition,

                                        9
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compliance or lack of compliance with any Law or Permit or any other attribute
or matter relating thereto.

                                   ARTICLE 5.
                         REPRESENTATIONS AND WARRANTIES.

      Section 5.1. As of the Effective Date hereof, Seller represents and
warrants to Purchaser the following:

            5.1.1 Seller Representations.

            (a) Seller is a limited partnership duly organized and validly
      existing and in good standing under the laws of the State of Delaware, and
      is qualified to do business in the State of Texas. Seller has the full
      power and authority to own, lease and operate its assets and properties
      and to conduct its business as now conducted. Neither Seller, nor any
      entity controlling, or controlled by, Seller owns a five percent (5%) or
      greater interest (within the meaning of Prohibited Transaction Class
      Exemption 84-14) in JP Morgan Chase Bank.

            (b) This Agreement constitutes the legal, valid and binding
      obligation of Seller, enforceable against Seller in accordance with its
      terms. Seller has taken all necessary action to authorize and approve the
      execution and delivery of this Agreement and the Seller Ancillary
      Agreements and its performance hereof and thereof.

            (c) The execution and delivery of this Agreement and the Seller
      Ancillary Agreements and the performance by Seller of its obligations
      hereunder and thereunder do not and will not conflict with or violate any
      current Laws of any Governmental Body with jurisdiction over Seller or the
      Property, including, without limitation, the United States of America, the
      State of Delaware, the State of Texas, or any political subdivision of any
      of the foregoing, or any decision or ruling of any arbitrator to which
      Seller is a party or by which Seller or the Property is bound or affected.

            (d) Annexed hereto as Schedule 5.1.1(d) and made a part hereof are
      the financial statements prepared by Seller relating to the Property for
      the three years ended December 31, 2001, 2002 and 2003 (collectively, the
      "Financial Statements"). The Financial Statements in each case are true
      and complete with respect to all material items contained therein and
      fairly present in all material respects the financial position and results
      of operations of Seller with respect to the Property as at, or for the
      periods ended on, such dates. Also annexed as part of such Schedule are
      certain operating statements prepared by Seller relating to the Property
      covering periods subsequent to December 31, 2003, as shown therein. Such
      statements and budgets were prepared in the ordinary course of managing
      the Property.

            5.1.2 Property Representations.

            (a) To Seller's knowledge, no Governmental Body plans to change the
      highway or road system in the vicinity of the Land in a manner which would
      adversely

                                       10
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      affect the Land and/or the business operations conducted thereon or would
      restrict or change access from any such highway or road to the Land.

            (b) There are no pending or, to Seller's knowledge, threatened
      condemnation or eminent domain proceedings relating to or affecting the
      Land and/or the Improvements.

            (c) No Person has any (i) conditional or unconditional right and/or
      option to purchase the Property or any portion thereof, and/or (ii) right
      of first refusal or offer to purchase the Property or any portion thereof.

            (d) Schedule 5.1.2(d) attached hereto, which includes a rent roll
      and other information pertaining to the Tenant Leases, is true, correct
      and complete, and lists all Tenant Leases with respect to the Land or any
      portion thereof or interest therein that Seller leases, subleases or
      licenses as the ground lessor, lessor, sublessor or licensor. Seller has
      made available to Purchaser true and materially complete and correct
      copies of the Tenant Leases and currently outstanding letters of intent
      relating to occupancy of space within the Property. Except as otherwise
      shown in Schedule 5.1.2(d), no Person other than Seller has the right to
      possess or occupy the Land (or any portion thereof). All of the Tenant
      Leases are in full force and effect and have not been modified except as
      set forth in Schedule 5.1.2(d). To Seller's knowledge, there are no
      parties in possession of the Land (or any portion thereof) except the
      Tenants and any subtenants under subleases that are disclosed in Schedule
      5.1.2(d); except as set forth in Schedule 5.1.2(d), there are no
      unsatisfied "Take-Over" space obligations or "Take-Back" space obligations
      (for the purposes hereof, "Take-Over" space obligations means rent
      obligations of the Tenant in other buildings assumed by the landlord and
      "Take-Back" space obligations means obligations imposed upon the landlord
      to sublet or otherwise be responsible for the obligations of a Tenant
      under a Tenant Lease). Except as set forth in Schedule 5.1.2(d), there are
      no disputes with Tenants as to the amount of their rent or other charges
      (including, without limitation, charges for common area maintenance) under
      any Tenant Lease; except as set forth in the Tenant Leases, no Tenant has
      any option to cancel its Tenant Lease; except as set forth in Schedule
      5.1.2(d), there is no Default beyond applicable notice and cure periods by
      the landlord under any Tenant Leases. Seller has not received from any
      Tenant any written notice claiming any Default by the landlord under its
      Tenant Lease; except as set forth in Schedule 5.1.2(d), Seller has not
      delivered to any Tenant any written notice claiming a Default by Tenant
      under its Tenant Lease which Default has not been cured; except as set
      forth in Schedule 5.1.2(d), to Seller's knowledge, there are no
      circumstances which, after notice and the expiration of any applicable
      grace period, would constitute a Default by either landlord or any Tenant
      under any of the Tenant Leases; except as set forth in Schedule 5.1.2(d),
      Seller has not received written notice from any Tenant of any defense to,
      or offsets or claims against rental payable or obligations under any
      Tenant Lease; and to Seller's knowledge, no Tenant has asserted, or has
      any defense to, offsets or claims against rental payable or obligations
      under any Tenant Lease.

      Except for any Subleases specified in Schedule 5.1.2(d), to Seller's
knowledge, (i) Seller has not consented to any Subleases, (ii) there are no
Subleases encumbering or affecting the

                                       11
<PAGE>

Land or Improvements (or any portion thereof), and (iii) true, correct and
complete copies of any such Subleases have been delivered to Purchaser and/or
its consultants, accountants, auditors, attorneys, agents and/or other
representatives ("Purchaser's Representatives").

      Except for the License Agreements specified in Schedule 5.1.2(d), there
are no License Agreements encumbering or affecting the Land or Improvements (or
any portion thereof). True, correct and complete copies of any such License
Agreements have been delivered to Purchaser and/or Purchaser's Representatives.
All of such License Agreements are in full force and effect and have not been
modified except as set forth in Schedule 5.1.2(d). Except as set forth in
Schedule 5.1.2(d), there are no disputes with any licensee as to the amount of
its rent or other charges (including, without limitation, charges for common
area maintenance) under any License Agreement; except as set forth in such
License Agreements, no licensee has any option to cancel its License Agreement;
except as set forth in Schedule 5.1.2(d), there is no Default beyond applicable
notice and cure periods by any licensee under such License Agreements. Seller
has not received from any licensee any written notice claiming any Default by
Seller as licensor under its License Agreement; except as set forth in Schedule
5.1.2(d), Seller has not delivered to any licensee written notice claiming a
Default by such licensee under its License Agreement which Default has not been
cured; except as set forth in Schedule 5.1.2(d), to Seller's knowledge there are
no circumstances which, after notice and the expiration of any applicable grace
period, would constitute a Default by either any licensee or Seller, as licensor
under any of the License Agreements; except as set forth in Schedule 5.1.2(d),
Seller has not received written notice from any licensee of any defense to, or
offsets or claims against rental payable or obligations under any License
Agreement; and to Seller's knowledge, no licensee has asserted, or has any
defense to, offsets or claims against rental payable or obligations under any
License Agreement.

      Schedule 5.1.2(d) specifies any Guarantees relating to the Tenant Leases.
All of such Guarantees are in full force and effect and have not been modified
except as set forth in Schedule 5.1.2(d). Except as set forth in Schedule
5.1.2(d), no Guarantor of any Tenant Lease has been released or discharged,
voluntarily (or to Seller's knowledge, involuntarily, or by operation of law)
from any obligation related to such Tenant Lease and covered by its Guaranty.

      With respect to the rent roll that is a part of Schedule 5.1.2(d) attached
hereto: (i) such rent roll reflects all Tenant Leases dated as of November 5,
2004, prepared by or for Seller; the information in the rent roll was used to
invoice Tenants for their monthly payments for November, 2004; (ii) except as
set forth in Schedule 5.1.2(d), the rent roll sets forth all of the Security
Deposits being held by Seller and required to be delivered by the Tenants under
their Tenant Leases; there are no other Security Deposits; and all Security
Deposits are held by or on behalf of Seller; and (iii) the information shown on
the rent roll is true, correct and complete in all material respects.

            (e) Schedule 5.1.2(e) specifies all unpaid leasing costs and
      expenses arising out of Tenant Leases entered into prior to the Effective
      Date (including, without limitation, all tenant improvement costs, all
      outstanding tenant improvement allowances and all outstanding leasing
      commissions). Except for those unpaid leasing costs and expenses
      (including, without limitation, tenant improvement costs, outstanding
      tenant improvement allowances and outstanding leasing commissions) listed
      in Schedule 5.1.2(e), there are no other such costs or expenses due now,
      or that will

                                       12
<PAGE>
hereafter become due or owing with respect to the Land or Improvements, other
than in connection with leases that may be entered into by Purchaser after the
Effective Date. Except as otherwise shown in Schedule 5.1.2(e), there are no
unpaid leasing costs or expenses (including, without limitation, tenant
improvement costs, outstanding tenant improvement allowances or outstanding
leasing commissions) due or payable to Seller or any of its Affiliates in
connection with the Tenant Leases entered into as of the Effective Date.

      (f) Except as set forth in Schedule 5.1.2(f), all tenant improvements
required under the Tenant Leases to be completed by the Effective Date hereof by
the landlord thereunder have been completed and all tenant allowances and other
tenant inducement costs required under the Tenant Leases to be paid prior to the
Effective Date have been paid in full.

      (g) Except as set forth in Schedule 5.1.2(g), to Seller's knowledge after
due and diligent inquiry, the Land and Improvements and the current use,
occupation and condition thereof are in compliance with and do not violate any
applicable deed restrictions or other covenants, restrictions or agreements
(including, without limitation, any of the Permitted Exceptions) in any material
respect. Except as set forth in Schedule 5.1.2(g), to Seller's knowledge, the
Land and Improvements and the current use, occupation and condition thereof are
in compliance with and do not violate any applicable site plan approvals, zoning
or subdivision regulations or urban redevelopment plans applicable to the Land
and Improvements in any material manner. Except as set forth in Schedule
5.1.2(g), neither Seller nor, to Seller's knowledge, any Affiliate of Seller,
has received any written notice of noncompliance with or violation of any
applicable deed restriction or other covenants, restrictions, or agreements
(including, without limitation, any of the Permitted Exceptions), site plan,
approvals, zoning or subdivision regulations or urban redevelopment plans
applicable to the Land and Improvements. Seller is not in material Default under
any Permitted Exception. Except as set forth in Schedule 5.1.2(g), to Seller's
knowledge, Seller is in compliance with the covenants, conditions, obligations,
restrictions and requirements set forth in the Permitted Exceptions. To Seller's
knowledge, all work, development, construction and improvements performed or
required pursuant thereto, whether by Seller or any predecessor in interest,
have been completed and paid for in conformity therewith. Except as set forth in
Schedule 5.1.2(g), all current assessments, dues, charges and other payments
required under any of the Permitted Exceptions have been paid in full and Seller
is not in arrears with respect to any such payments.

      (h) Except as set forth in the current tax bills, copies of which are
annexed hereto and made a part hereof as Schedule 5.1.2(h), which copies are
true and complete copies of such tax bills, there are no special assessments or
charges which have been levied against, and remain an obligation of, the Land
and/or the Improvements. There are no pending or, to Seller's knowledge,
threatened, special assessments affecting the Land and/or the Improvements or
any contemplated improvements affecting the Land and/or the Improvements that
may result in any such special assessments.

                                       13
<PAGE>

      (i) Except for the Leasing and Management Agreement (herein so called) to
be executed on the Closing Date, there is no contract or agreement with any
third party for the management of the Property or any portion thereof, which
will be binding on the Land and Improvements or on Seller as of the Closing
Date.

      (j) Except as set forth in the Reports and in Schedule 5.1.2(j), Seller
and the Property have complied in all material respects with all Environmental
Laws. Seller has obtained all material Permits which are required with respect
to the operation of the Land and Improvements under any Environmental Laws.

      (k) Seller and the Land and Improvements are in possession of (and in
compliance in all material respects with the requirements of), all Permits
required by any Environmental Laws, and are also in compliance in all material
respects with all other limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules and timetables contained in
any Environmental Laws or contained in any plan, order, decree, judgment,
injunction, notice or demand letter issued, entered, promulgated or approved
thereunder applicable to Seller or the Land or Improvements. Seller has
delivered or made readily available to Purchaser or the Purchaser
Representatives true and complete copies of all final environmental studies
prepared by outside consultants relating to the Land and Improvements that were
prepared for or requested by Seller or Crescent.

      (l) Except as set forth in the Reports, there is no pending, or, to
Seller's knowledge, threatened Action, demand, claim, hearing, notice of
violation, notice or demand letter that affects or applies to Seller or the Land
or Improvements implicating Environmental Laws or any order, decree, judgment,
injunction, notice or demand letter issued, entered, promulgated or approved
thereunder.

      (m) Except as set forth in the Reports and in Schedule 5.1.2(m), there are
no past or present events, conditions, circumstances, activities, practices,
incidents, actions or plans known to Seller which may reasonably be expected to
interfere with or prevent the compliance or continued compliance by Seller with
any Environmental Laws or with any regulation, code, plan, order, decree,
judgment, injunction, notice or demand letter issued, entered, promulgated or
approved thereunder, or which is reasonably likely to give rise to any common
law or legal liability, or otherwise form the basis of any Action, hearing,
notice of violation or study, based on or related to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling, or the emission, discharge, release or threatened release into the
environment, by Seller or the Land or Improvements of any pollutant,
contaminant, chemical, or industrial, toxic or Hazardous Substances.

      (n) Except as set forth in the Reports and in Schedule 5.1.2(n), to
Seller's knowledge there has been no material emission, spill, release or
discharge from the Land or Improvements or by Seller at any other location or
disposal site, into or upon (i) the air, (ii) soils or improvements, (iii)
surface water or ground water, or (iv) the sewer, septic system or waste
treatment, storage or disposal system servicing the Land and/or the Improvements
of any toxic or Hazardous Substances regulated by the Environmental

                                       14
<PAGE>

Laws and used, stored, generated, treated or disposed at or from the Land and/or
the Improvements (any of which events is hereinafter referred to as "Hazardous
Discharge"). To Seller's knowledge, the Land and Improvements are free of
material amounts of all Hazardous Substances except for paints, cleaning
materials, fertilizer, pesticides, fuels and lubricants or similar materials in
amounts customarily used by prudent owners and tenants in the construction,
ownership, management and maintenance of their properties, which are, to
Seller's knowledge, being used, stored, handled, transported, generated and
disposed of in compliance with applicable Environmental Laws.

      (o) Except as set forth in the Reports and in Schedule 5.1.2(o), Seller
has not received any written notice of and has no knowledge of any complaints,
orders, directives, claims, citations or notices with respect to (i) air
emissions, (ii) spills, releases or discharges to soils or any improvements
located thereon, surface water, ground water or the sewer, septic system or
waste treatment, storage or disposal systems servicing the Land and/or the
Improvements, (iii) noise emissions, (iv) solid or liquid waste disposal, (v)
the use, generation, storage, transportation or disposal of toxic or Hazardous
Substances or (vi) other environmental, health or safety matters affecting
Seller or the Property.

      (p) Neither the Land nor any portion thereof is now or has ever been a
"Super-Fund Site". Except as set forth in the Reports and in Schedule 5.1.2(p),
to Seller's knowledge there are no underground storage tanks located on the
Land.

      (q) There are no Operating Agreements affecting the Property, oral or
written, other than those listed in Schedule 5.1.2(q) attached hereto. Each of
the Operating Agreements is in full force and effect. Seller has performed all
material obligations required to be performed by it, and is not in material
Default, under any Operating Agreement to which it is a party, by assumption or
otherwise. To Seller's knowledge, no other party is in material Default under
any such Operating Agreement. Seller has delivered to Purchaser or to
Purchaser's Representatives true, correct and complete copies of the Operating
Agreements. Seller is not a party to any material lease, contract, agreement or
other obligation other than the Tenant Leases and the Operating Agreements.
Except as set forth in Schedule 5.1.2(q), none of the Operating Agreements
(other than the Leasing and Management Agreement) are between Seller and any
Affiliate of Seller.

      (r) (i) Except as set forth in Schedule 5.1.2(r), Seller has not received
any written notice of any violation of any Law (including, without limitation,
building code, health and safety or zoning violations) issued by any
Governmental Body affecting the Land or Improvements that remains uncured as of
the Effective Date (collectively, "Violations") and (ii) except as set forth in
Schedule 5.1.2(r), Seller has not received any written notice that an
investigation has been commenced respecting any such possible Violations.

      (s) Schedule 5.1.2(s) attached hereto sets forth the material Permits held
by Seller with respect to the Property. To Seller's knowledge, all Permits
necessary to be maintained in connection with ownership, use, operation, leasing
and maintenance of the

                                       15
<PAGE>

Property have been obtained and are in full force and effect. Seller has not
received written notice, nor does Seller have knowledge, (i) of any pending or
threatened modification or cancellation of any of the Permits, (ii) that Seller
lacks any Permit required in connection with the ownership, operation,
management or leasing of the Property (even though a physical copy thereof may
not be in the possession of Seller), or (iii) of any violation of any of the
Permits.

      (t) Schedule 5.1.2(t) attached hereto sets forth a true and complete list
and description of all insurance policies relating to the Property. Except as
set forth in Schedule 5.1.2(t), there are no pending claims made against the
Property. Schedule 5.1.2(t), the insurance, from January 1, 2004 to the date
hereof, has (i) been maintained in full force and effect and (ii) not been
canceled or changed except to extend the maturity dates thereof or alter the
premiums due thereunder.

      (u) All water, storm and sanitary sewer, gas (if applicable), electricity,
telephone and other utilities serving the Land and Improvements are (i) supplied
directly to the Land and Improvements by facilities of public utilities through
lands as to which public or private easements exist that, to Seller's knowledge,
will continue to inure to the benefit of the Land and Improvements from and
after the Closing Date, (ii) adequate to service the normal operations of the
Land and Improvements, and (iii) supplied through installations the cost of
which has been fully paid or will be paid.

      (v) Annexed hereto as Schedule 5.1.2(v) and made a part hereof is a true
and complete list of all guarantees and warranties relating to the Personalty,
and all agreements, amendments, guarantees, side letters and other documents
relating thereto. To Seller's knowledge, all such guarantees are in full force
and effect and have not been invalidated by any act or omission of Seller.
Seller has delivered to Purchaser or to Purchaser's Representatives true,
correct and complete copies of the documents referred to herein.

      (w) Except as set forth in Schedule 5.1.2(w), the Land is served by public
roads, which have been completed and are physically and legally open for use by
the public, and Seller has full access to and the right to use such roads
freely.

      (x) The Land is assessed for real estate tax purposes as a separate and
wholly independent tax lot, separate from any other land or improvements not
constituting a part of such lots, and no other land or improvements are assessed
and taxed together with any portion of the Land.

      (y) Except as listed in Schedule 5.1.2(y) attached hereto and made a part
hereof, no Actions for the correction of the assessed valuation of the Land have
been filed on behalf of Seller and are pending.

      (z) Seller owns good and indefeasible fee title to the Land, free and
clear of all exceptions and restrictions of any nature whatsoever, subject only
to the Permitted Exceptions.

                                       16
<PAGE>

      (aa) The list of Personalty set forth in Schedule 5.1.2(aa) annexed hereto
and made a part hereof is true, accurate and complete in all material respects.
Except as otherwise noted in Schedule 5.1.2(aa), the Personalty has been fully
paid for and is not subject to any Lien. The Personalty listed in Schedule
5.1.2(aa) is located on the Land and is the Personalty used in the ownership,
use, operation, leasing and maintenance of the Land and Improvements.

      (bb) Except as listed in Schedule 5.1.2(bb), to Seller's knowledge, all
fixtures, machinery, equipment, lighting fixtures and appliances comprising a
portion of the Personalty and all heating, air-conditioning, ventilating,
electrical and plumbing systems on or in the Land and Improvements are free of
material defects and are in good working order, normal wear and tear excepted,
and comply with the requirements of all applicable Governmental Bodies, and all
Laws including, without limitation, all Environmental Laws and all Permits
required thereby have been obtained and are in full force and effect.

      (cc) Except as listed in Schedule 5.1.2(cc), permanent certificates of
occupancy have been issued for the Improvements, and for all spaces demised
under the Tenant Leases. To Seller's knowledge, the roofs and basements of the
Improvements are free of material water leaks and material structural defects.

      (dd) Except as set forth in Schedule 5.1.2(dd) attached hereto, there are
no pending Actions of which Seller has received written notice or, to the
knowledge of Seller, contemplated Actions brought by or against Seller,
affecting all or any portion of the Property or Seller which are not otherwise
covered by insurance.

      (ee) There are no union or employment contracts or agreements (written or
oral) affecting any Property and there are no employees of Seller, who, by
reason of any Laws, or by reason of any union or other employment contract,
written or otherwise, or any other reason whatsoever, would become employees of
Purchaser as a result of the transactions contemplated in this Agreement. By the
execution of this Agreement, Purchaser is not expressly or implicitly assuming
any liability, obligation, cost or expense whatsoever with respect to any
employment contract, employee benefit plan or arrangement, employment policy or
practice, collective bargaining agreement, union contract, employment related
claims whether based on statute, common law, tort or otherwise or any other
liability relating in any way to employees.

      (ff) Neither Seller, nor any of its officers, directors or partners, nor
any person or entity that, to Seller's present, actual knowledge, directly owns
more than 10% beneficial interest in it, as described in the Schedule 14A
Information Required in the Proxy Statement of Crescent Real Estate Equities
Company dated as of May 28, 2004, is a person or entity (each, a "Prohibited
Person") with whom U.S. persons or entities are restricted from doing business
under regulations of the Office of Foreign Asset Control ("OFAC") of the
Department of the Treasury (including those named on OFAC's Specially Designated
and Blocked Persons List) or under Executive Order 13224 (the "Executive Order")
signed on September 24, 2001, and entitled "Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit, or Support
Terrorism"), and Seller has no present, actual knowledge that any other persons
or

                                       17
<PAGE>

      entities holding any legal or beneficial interest whatsoever in Seller are
      included in, owned by, controlled by, knowingly acting for or on behalf
      of, knowingly providing assistance, support, sponsorship or services of
      any kind to, or otherwise knowingly associated with any of the persons or
      entities referred to or described in the Executive Order, or banned or
      blocked person, entity, nation or transaction pursuant to any law, order,
      rule or regulation that is enforced or administered by OFAC.

            (gg) For purposes of Section 514(c)(9) of the Code, except for those
      leases that are disregarded pursuant to Section 514 (c)(9)(G) of the Code
      and after taking into account any other applicable exemption: (i) The
      Property is not as of the Effective Date leased to Seller or to any other
      Affiliate of Seller or of Crescent (collectively, the "Crescent Parties"),
      or any partner thereof, or any entity which bears a relationship to the
      Crescent Parties, or any partner thereof described in Section 267(b) or
      Section 707(b) of the Code, and (ii) neither the Property nor any interest
      in Purchaser is being acquired from, and, to Seller's knowledge the
      Property is not leased to any person, which bears a relationship described
      in subparagraph (C), (E) or (G) of Section 4975(e)(2) of the Code to any
      plan, fund, arrangement, program or account (each, a "Plan") having an
      interest in SPF or which bears a relationship described in subparagraph
      (F) or (H) of Section 4975(e)(2) of the Code to any person which bears a
      relationship described in subparagraph (C), (E) or (G) of Section
      4975(e)(2) of the Code to any Plan having an interest in SPF; provided,
      however that for purposes of the foregoing clause, any relationship to
      subparagraph (G) of Section 4975(e)(2) of the Code shall be determined as
      though such subparagraph cross-referenced only sub-paragraph (C) and (E)
      (and not subparagraphs (A), (B) and (D)).

            (hh) The current use and operation of the building known as 3 Post
      Oak (one of the Improvements) is not in violation of the existing City of
      Houston sewer and wastewater capacity requirements pertaining to 3 Post
      Oak.

      Section 5.2.

            5.2.1 No broker, agent, or party other than Seller is authorized to
make any representation or warranty for or on behalf of Seller. Terms such as
"to Seller's knowledge" or like phrases used in connection with the
representations and warranties contained in Section 5.1.2 of this Agreement mean
the actual knowledge of Jane Mody, David Dean, Jim Wilson and Ted Freyer (the
"Seller Knowledge Parties"), without any duty of inquiry or investigation except
as otherwise expressly indicated in this Agreement and such terms do not include
constructive knowledge or imputed knowledge; provided that so qualifying
Seller's knowledge shall in no event give rise to any personal liability on the
part of the Seller Knowledge Parties, on account of any breach of any
representation or warranty made by Seller herein. Seller represents and warrants
that the Seller Knowledge Parties are parties primarily responsible for and most
knowledgeable about the Property.

            5.2.2 If, prior to the Closing Date, (a) Purchaser had actual
knowledge that any of the representations or warranties of Seller contained in
this Agreement are false or inaccurate, (b) such false or inaccurate
representations or warranties resulted from facts or circumstances beyond the
control of Seller, and (c) Seller had no knowledge that such representations or

                                       18
<PAGE>

warranties were false or inaccurate when made, then Seller shall have no
liability or obligation respecting such false or inaccurate representations or
warranties (and any cause of action resulting therefrom shall terminate upon the
Closing). Terms such as "Purchaser had actual knowledge" or like phrases mean
the actual knowledge of Frederick N. Sheppard, Lola V. Bellini, Jim Kennedy and
Stefan Murphy (the "JPM Employees"), without any duty of inquiry or
investigation except as otherwise expressly indicated and such terms do not
include constructive knowledge or imputed knowledge; provided that under no
circumstances shall the JPM Employees have any personal liability hereunder.
Prior to the Effective Date, Purchaser delivered to Seller true, correct and
complete copies of all physical condition and environmental reports prepared by
third parties at Purchaser's request in connection with Purchaser's due
diligence efforts pertaining to the Property.

      Section 5.3. PURCHASER HEREBY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT, NEITHER SELLER, NOR ANY PERSON ACTING ON BEHALF OF
SELLER, NOR ANY PERSON OR ENTITY WHICH PREPARED OR PROVIDED ANY OF THE MATERIALS
REVIEWED BY PURCHASER IN CONDUCTING ITS DUE DILIGENCE PRIOR TO THE EFFECTIVE
DATE, NOR ANY DIRECT OR INDIRECT OFFICER, DIRECTOR, PARTNER, MEMBER,
SHAREHOLDER, EMPLOYEE, AGENT, REPRESENTATIVE, ACCOUNTANT, ADVISOR, ATTORNEY,
PRINCIPAL, CONSULTANT, CONTRACTOR, SUCCESSOR OR ASSIGN OF SELLER, ITS AFFILIATES
OR ANY OF THE OTHER FOREGOING PARTIES (SELLER, AND ALL OF THE OTHER PARTIES
DESCRIBED IN THE PRECEDING PORTIONS OF THIS SENTENCE (OTHER THAN PURCHASER)
SHALL BE REFERRED TO HEREIN COLLECTIVELY AS THE "EXCULPATED PARTIES") HAS MADE
OR SHALL BE DEEMED TO HAVE MADE ANY ORAL OR WRITTEN REPRESENTATIONS OR
WARRANTIES, WHETHER EXPRESSED OR IMPLIED, BY OPERATION OF LAW OR OTHERWISE
(INCLUDING WITHOUT LIMITATION WARRANTIES OF HABITABILITY, MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE), WITH RESPECT TO THE PROPERTY, THE PERMITTED
USE OF THE PROPERTY OR THE ZONING AND OTHER LAWS, REGULATIONS AND RULES
APPLICABLE THERETO OR THE COMPLIANCE BY THE PROPERTY THEREWITH, THE REVENUES AND
EXPENSES GENERATED BY OR ASSOCIATED WITH THE PROPERTY, OR OTHERWISE RELATING TO
THE PROPERTY OR THE TRANSACTION CONTEMPLATED HEREIN. PURCHASER FURTHER
ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, ALL
MATERIALS WHICH HAVE BEEN PROVIDED BY ANY OF THE EXCULPATED PARTIES, HAVE BEEN
PROVIDED WITHOUT ANY WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED AS TO
THEIR CONTENT, SUITABILITY FOR ANY PURPOSE, ACCURACY, TRUTHFULNESS OR
COMPLETENESS AND PURCHASER SHALL NOT HAVE ANY RECOURSE AGAINST SELLER OR ANY OF
THE OTHER EXCULPATED PARTIES IN THE EVENT OF ANY ERRORS THEREIN OR OMISSIONS
THEREFROM, EXCEPT TO THE EXTENT OF ANY REPRESENTATIONS OR WARRANTIES EXPRESSLY
SET FORTH IN THIS AGREEMENT OR CONTAINED IN ANY CLOSING DOCUMENT. PURCHASER IS
ACQUIRING THE PROPERTY BASED SOLELY ON ITS OWN INDEPENDENT INVESTIGATION AND
INSPECTION OF THE PROPERTY PRIOR TO THE EFFECTIVE DATE AND NOT IN RELIANCE ON
ANY INFORMATION PROVIDED BY SELLER, OR ANY OF THE OTHER EXCULPATED PARTIES,
EXCEPT FOR THE REPRESENTATIONS

                                       19
<PAGE>

AND WARRANTIES EXPRESSLY SET FORTH HEREIN. PURCHASER EXPRESSLY DISCLAIMS ANY
INTENT TO RELY ON ANY SUCH MATERIALS PROVIDED TO IT BY SELLER IN CONNECTION WITH
ITS DUE DILIGENCE PRIOR TO THE EFFECTIVE DATE EXCEPT TO THE EXTENT SUCH
MATERIALS ARE THE SUBJECT OF ANY REPRESENTATIONS OR WARRANTIES SET FORTH IN THIS
AGREEMENT AND AGREES THAT IT SHALL RELY SOLELY ON ITS OWN INDEPENDENTLY
DEVELOPED OR VERIFIED INFORMATION.

      Section 5.4. AS A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT,
SELLER AND PURCHASER AGREE THAT PURCHASER IS PURCHASING THE PROPERTY "AS IS"
WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS NO WARRANTY BY
SELLER THAT THE PROPERTY IS FIT FOR A PARTICULAR PURPOSE. EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, PURCHASER
ACKNOWLEDGES AND AGREES THAT IT IS NOT RELYING UPON ANY REPRESENTATIONS,
STATEMENTS OR OTHER ASSERTIONS WITH RESPECT TO THE PROPERTY CONDITION, BUT IS
RELYING UPON ITS OWN EXAMINATION OF THE PROPERTY PRIOR TO THE EFFECTIVE DATE.
PURCHASER IS PURCHASING THE PROPERTY UNDER THE EXPRESS UNDERSTANDING THAT THERE
ARE NO EXPRESS OR IMPLIED WARRANTIES, EXCEPT AS EXPRESSLY SET FORTH HEREIN. IN
NO EVENT SHALL PURCHASER HAVE THE RIGHT TO RECOVER CONSEQUENTIAL DAMAGES.
PURCHASER HEREBY WAIVES ANY ACTION UNDER THE TEXAS DECEPTIVE TRADE PRACTICES
ACT. THE PROVISIONS OF SECTIONS 5.3 AND 5.4 SHALL SURVIVE THE CLOSING.

      Section 5.5. The provisions of the foregoing Sections 5.3 and 5.4 shall be
deemed incorporated by reference and made a part of all documents or instruments
delivered by Seller to Purchaser in connection with the consummation of the
transactions contemplated herein.

      Section 5.6. As of the Effective Date, Purchaser represents and warrants
to Seller the following:

            5.6.1 Purchaser is a limited partnership duly organized, validly
existing and in good standing under the laws of the State of Delaware. Purchaser
has the full power and authority to own, lease and operate its assets and to
conduct its business as now conducted.

            5.6.2 This Agreement constitutes the legal, valid and binding
obligation of Purchaser, enforceable against Purchaser in accordance with its
terms. Purchaser has taken all necessary action to authorize and approve the
execution and delivery of this Agreement and its performance thereof.

            5.6.3 The execution and delivery of this Agreement and the
performance by Purchaser of its obligations hereunder do not and will not
conflict with or violate any current Law of any court or Governmental Body with
jurisdiction over Purchaser, including, without limitation, the United States of
America and the State of Delaware, or any political subdivision of any of the
foregoing, or any decision or ruling of any arbitrator to which Purchaser is a
party or by which Purchaser is bound or affected.

                                       20
<PAGE>

            5.6.4 Purchaser is not a party to, or subject to or bound by, any
agreement, judgment, order, writ, injunction or decree of any court or
governmental body that could prevent the performance of all or any of the terms
of this Agreement.

            5.6.5 Neither Purchaser, nor any person or entity that, to
Purchaser's present, actual knowledge, directly owns a 10% or greater equity
interest in Seller, nor any of its officers, directors or partners is a
Prohibited Person, and Purchaser has no present, actual knowledge that any other
persons or entities holding any legal or beneficial interest whatsoever in
Purchaser are included in, owned by, controlled by, knowingly acting for or on
behalf of, knowingly providing assistance, support, sponsorship or services of
any kind to, or otherwise knowingly associated with any of the persons or
entities referred to or described in the Executive Order, or banned or blocked
person, entity, nation or transaction pursuant to any law, order, rule or
regulation that is enforced or administered by OFAC.

                                   ARTICLE 6.
                     SURVIVAL AND LIMITATION OF LIABILITY OF
                         REPRESENTATIONS AND WARRANTIES.

      Section 6.1. The Parties agree that all representations and warranties set
forth in this Agreement, or in any instrument or document delivered pursuant to
this Agreement or in connection with the transactions contemplated hereby, shall
survive the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby for a period of eighteen (18) months from the
Closing Date unless expressly provided to the contrary (the "Survival Period").

      Section 6.2. Subject to the limitations set forth in Section 6.3 below,
Crescent agrees to indemnify, defend and hold Purchaser harmless from and
against any and all Damages incurred by Purchaser from or in connection with any
breach of any representation or warranty made by Seller in this Agreement or in
any instrument or document delivered pursuant to this Agreement or in connection
with the transactions contemplated hereby.

      Section 6.3. Each Party shall have the right to bring an action against
the other (and, in the case of Purchaser, against Crescent) on the breach of a
representation or warranty hereunder, or in any instrument or document delivered
pursuant to this Agreement or in connection with the transactions contemplated
hereby, but only on the following conditions: (a) the Party bringing the action
for breach first obtains actual knowledge of the breach after Closing and files
such action within the Survival Period; (b) except as otherwise provided in
Section 6.5, no Party, and no Affiliate of any Party, shall have the right to
bring a cause of action for a breach of a representation or warranty unless the
Damages to such Party on account of such breach (individually or when combined
with Damages from other breaches hereunder or under any instrument or document
delivered pursuant to this Agreement or in connection with the transactions
related to the Property (but not other property) contemplated hereby) equals or
exceeds $250,000.00 (the "Floor"); (c) except as otherwise provided in Section
6.5, the liability of Seller, Crescent and any of their respective Affiliates
for a breach of a representation or warranty shall be limited to Damages to
Purchaser on account of such breach (individually or when combined with Damages
from other breaches hereunder or under any instrument or document delivered
pursuant to this Agreement or in connection with the transactions related to

                                       21
<PAGE>

the Property (but not other property) contemplated hereby) in an amount not to
exceed $4,425,000 (the "Representations and Warranties Cap"); (d) the liability
of Purchaser and any of its Affiliates for a breach of a representation or
warranty shall be limited to Damages to Seller on account of such breach
(individually or when combined with Damages from other breaches hereunder or
under any instrument or document delivered pursuant to this Agreement or in
connection with the transactions related to the Property (but not other
property) contemplated hereby) in an amount not to exceed the Representations
and Warranties Cap; (e) notwithstanding anything to the contrary herein, no
Party shall have the right to recover punitive or consequential damages with
respect to a claim for breach of representation or warranty; and (f) the Party
bringing the action will refrain from exercising any of their respective
remedies hereunder for an alleged breach of a representation or warranty without
first giving the other Party thirty (30) days' prior written notice and
opportunity to cure such breach to the reasonable satisfaction of the Party
bringing the action; provided, that if the other Party is unable to cure such
breach within such thirty (30) day period, such other Party shall be allowed
additional time as is reasonably necessary to cure the breach so long as such
other Party commences curative efforts within the initial thirty (30) day period
and diligently pursues such efforts to completion; provided, the Survival Period
shall be tolled during such curative period.

      Section 6.4. Notwithstanding anything to the contrary in this Article 6,
the Parties agree that (a) to the extent Seller has provided Purchaser a Tenant
Estoppel Certificate upon which Purchaser is entitled to rely relating to any
Tenant Lease and Major Lease; (b) such Tenant Estoppel Certificate confirms the
content of any representation and warranty relating thereto as set forth in
Section 5.1.2(d) above; and (c) such Tenant thereafter asserts a position or
right contrary to any assurance provided in its Tenant Estoppel Certificate and
contrary to any representation and warranty of Seller relating thereto as set
forth in Section 5.1.2(d), then Purchaser, before proceeding against Seller for
a breach of such representation or and warranty, shall first use commercially
reasonable efforts, at the sole expense of Seller and Crescent, to enforce its
rights against such Tenant.

      Section 6.5. Notwithstanding anything to the contrary contained herein,
the Parties and Crescent hereby acknowledge and agree that (a) the
representations and warranties contained in Sections 5.1.2(e) and 5.1.2(f) above
shall not be subject to the Survival Period, the Floor or the Representations
and Warranties Cap; (b) such representations and warranties shall survive
indefinitely; and (c) the liability of Seller and Crescent for breach of such
representations or warranties shall not be limited.

      Section 6.6. Concerning the "Seller Certificate" (herein so called), in
the form of Exhibit R attached hereto and made a part hereof, and provided by
Seller at Closing with respect to Tenant Leases for which no executed Tenant
Estoppel Certificate was available at Closing, Purchaser acknowledges and agrees
that (a) the information provided by Seller therein amounts to additional
representations and warranties of Seller pertaining to the transactions that are
the subject of this Agreement; (b) except with respect to the Major Tenant
Estoppel (hereinafter defined), all such representations, warranties and
information provided by Seller in the Seller Certificate shall be subject in all
respects to the provisions of this Article 6, including without limitation the
Survival Period, the Floor and the Representations and Warranties Cap; and (c)
Seller shall be released from liability under this Agreement with respect to
such representations, warranties and information as set forth in any Tenant
Estoppel Certificate

                                       22
<PAGE>

attached to the Landlord's Estoppel if the tenant named in such tenant estoppel
delivers to Purchaser a signed Tenant Estoppel Certificate within ninety (90)
days of the Effective Date, to the extent that such Tenant Estoppel Certificate
is (i) made for the benefit of Purchaser, (ii) contains substantially the same
representations, warranties and information as set forth in the Tenant Estoppel
Certificate that is attached to the Seller Certificate, and (iii) contains no
material deviations or discrepancies with respect to such form of such Tenant
Estoppel Certificate that is attached to the Seller Certificate. The Parties
acknowledge that Exhibit S-1 attached hereto and made a part hereof contains a
schedule identifying the respective Tenant Leases with respect to which an
executed Tenant Estoppel Certificate was available at Closing, and that Exhibit
S-2 attached hereto and made a part hereof contains a schedule identifying the
respective Tenant Leases with respect to which an executed Tenant Estoppel
Certificate was not available at Closing. For the purposes of this Section 6.6,
the "Major Tenant Estoppel" means the Tenant Estoppel Certificate with respect
to which the tenant named therein is Bally Total Fitness Corporation, with
respect to its Tenant Lease dated April 21, 1978. Seller acknowledges and agrees
that, notwithstanding anything to the contrary herein, the representations,
warranties and information provided by Seller in the Seller Certificate with
respect to the Major Tenant Estoppel shall not be subject to the Survival
Period, the Floor or the Representations and Warranties Cap; provided, however,
that such representations, warranties and information provided by Seller in the
Seller Certificate with respect to the Major Tenant Estoppel shall otherwise be
subject in all respects to the provisions of this Section 6.6, including clause
(c) above.

      Section 6.7. The provisions of this Article 6 shall survive the Closing.

                                   ARTICLE 7.
                                   BROKERAGE.

      Except for Lehman, each of the Parties and Crescent represents and
warrants to the other that neither it nor its Affiliates has dealt with or
engaged any broker or other intermediary in connection with or relating to the
transaction which is the subject of this Agreement. Purchaser covenants and
agrees to pay Lehman pursuant to the terms of a separate agreement. Each of the
Parties and Crescent shall defend, indemnify and hold harmless the other from
and against any and all liability, claim, charge or damages, including, without
limitation, reasonable counsel fees and court costs, incurred by the other as a
result of any breach by the indemnitor of the foregoing representation. The
provisions of this Article 7 shall survive the Closing.

                                   ARTICLE 8.
                         CLOSING COSTS; TRANSFER TAXES.

      Seller shall be responsible for the payment of (a) the costs of its legal
counsel, advisors and other professionals employed by it in connection with the
sale of the Property; (b) all state and local deed taxes and real property
transfer taxes, if any; (c) all costs associated with the Survey, the UCC
Searches, the Litigation Searches and the Lien Searches; (d) all recording
charges and fees; (e) all costs and expenses of transferring to Purchaser's name
(or issuing in Purchaser's name replacements of) any letters of credit held by
Seller as Deposits under Tenant Leases, (f) all costs and expenses of
transferring to Purchaser's name any assignable warranties pertaining to the
Improvements; (g) all title insurance costs to be borne by Seller as set forth
in Section 4.2 above; and (h) all usual escrow and/or closing fees customarily
paid by a seller in a

                                       23
<PAGE>

commercial real estate transaction closed in Harris County, Texas. Purchaser
shall be responsible for the payment of (i) the costs and expenses associated
with Purchaser's due diligence investigations conducted prior to the Effective
Date; (ii) the costs and expenses of its legal counsel, advisors and other
professionals employed and/or retained by it in connection with the purchase of
the Property; (iii) all title insurance costs to be borne by Purchaser as set
forth in Section 4.2 above; (iv) the costs and expenses of the lender in
connection with any new loan that provides funds for all or part of the Purchase
Price (a "New Loan"), including without limitation, loan fees, mortgage
recording taxes, financing costs and lender's legal fees, but excluding title
insurance costs which are to be borne as provided above; and (v) all usual
escrow and/or closing fees customarily paid by a purchaser in a commercial real
estate transaction closed in Harris County, Texas. In addition to the foregoing,
at the Closing Seller and Purchaser shall execute, acknowledge, deliver and file
all such returns, if any, as may be necessary to comply with any applicable
city, county or state conveyance tax laws and/or Texas real estate conveyance
tax laws (collectively, as the same may be amended from time to time, the
"Transfer Tax Laws"). The transfer taxes, if any, payable pursuant to the
Transfer Tax Laws shall collectively be referred to as the "Transfer Taxes". On
the Closing Date, Seller shall pay the Transfer Taxes, if any, to the
appropriate taxing authorities, in connection with the consummation of the
transactions contemplated by this Agreement. The provisions of this Article 8
shall survive the Closing.

                                   ARTICLE 9.
                 DELIVERIES TO BE MADE BY SELLER AT THE CLOSING.

      Section 9.1. Seller shall deliver or cause to be delivered to Purchaser on
the Closing Date concurrently with the execution of this Agreement, the
following (collectively, the "Seller Deliveries"):

            9.1.1 A duly executed and acknowledged Special Warranty Deed (the
"Deed") in the form of Exhibit B.

            9.1.2 The Owner Title Policy and Mortgagee Policy.

            9.1.3 An insured closing service letter (Form T-51) with respect to
the Escrow Agent.

            9.1.4 An Assignment and Assumption of Leases (the "Assignment of
Leases"), duly executed and acknowledged by Seller, in the form of Exhibit C.

            9.1.5 A duly executed Blanket Conveyance, Bill of Sale and
Assignment (the "Bill of Sale") in the form of Exhibit D.

            9.1.6 The affidavit referred to in Section 1445 of the Code with all
pertinent information confirming that Seller is not a foreign person, trust,
estate, corporation or partnership, duly executed by Seller, in the form of
Exhibit E.

            9.1.7 A fully executed counterpart of the Leasing and Management
Agreement.

                                       24
<PAGE>

            9.1.8 Letters to all Tenants under the Tenant Leases (the "Tenant
Notice Letters"), duly executed by Seller, in the form of Exhibit F.

            9.1.9 The Deposits (together with interest accrued thereon),
including any letters of credit and/or certificates of deposit held by Seller as
security under the Tenant Leases or under the Guaranties, but only to the extent
the same have not been applied or returned to Tenants or Guarantors in
accordance with the Tenant Leases or Guaranties, as applicable; provided, that
the delivery by Seller of any letters of credit and/or certificates of deposit
held by Seller as security under the Tenant Leases or Guaranties and required to
be delivered hereunder shall be governed by the provisions of Section 28.9
hereof.

            9.1.10 Evidence reasonably satisfactory to the Escrow Agent that the
person or persons executing this Agreement and the closing documents on behalf
of Seller have full right, power and authority to do so.

            9.1.11 Any notices required by applicable Law to be delivered by
Seller to Purchaser on or before Closing.

            9.1.12 The returns required under the Transfer Tax Laws, if any, and
any other tax laws applicable to the transactions contemplated herein, duly
executed and acknowledged by Seller.

            9.1.13 A duly executed and acknowledged Notice to Purchaser ("Notice
to Purchaser") in the form of Exhibit J.

            9.1.14 A duly executed and acknowledged Affidavit of Debts and Liens
in form satisfactory to the Title Company.

            9.1.15 Certain of the Title Estoppels as identified on Schedule
9.1.15 attached hereto, duly executed and acknowledged.

            9.1.16 UCC Releases.

            9.1.17 Evidence of capacity and transfer of the wastewater capacity
for the Property into Seller at no cost to Purchaser.

            9.1.18 A Notice to Purchaser, in the form attached hereto as Exhibit
K, notifying Purchaser that the Land and Improvements are located in Harris
County Improvement District No. 1.

            9.1.19 Other items reasonably requested by the Escrow Agent and/or
the Title Company for the sale of the Property in accordance with this Agreement
or for administrative requirements for consummating the Closing.

      In addition to the foregoing, Seller shall make available to Purchaser, at
the location of the Land and Improvements or at such other location as may be
reasonably acceptable to Purchaser, the following items: (A) all original Tenant
Leases and all Tenant files and correspondence that are in Seller's possession;
(B) original counterparts of all Operating

                                       25
<PAGE>

Agreements that are in Seller's possession; (C) all keys and master keys to all
locks pertaining to the Improvements, properly tagged for identification, as
well as combinations, card keys and cards for the security systems, if any; (D)
originals of all Permits in Seller's possession; (E) originals or, if originals
are unavailable, copies, of plans and specifications, technical manuals and
similar materials for the Improvements to the extent same are in Seller's
possession or control; (F) originals of the Tenant Estoppel Certificates; and
(G) original books and records for the Land and Improvements. In addition, as
soon as practicable following the Closing Date, (1) Seller shall deliver to
Purchaser, at Seller's sole cost, evidence of the transfer from Seller to
Purchaser of the wastewater capacity for the Property, and (2) Seller shall use
commercially reasonable efforts to obtain and to deliver to Purchaser the
remaining Title Estoppels (that is, the Title Estoppels other than those set
forth in Schedule 9.1.15), at Seller's sole cost (provided, however, that Seller
shall not be required hereunder to file suit nor to pay any fee or any
commercially unreasonable expense in its efforts to obtain any such Title
Estoppel). The provisions of the preceding sentence shall survive the Closing.

                                   ARTICLE 10.
               DELIVERIES TO BE MADE BY PURCHASER AT THE CLOSING.

      Section 10.1. Purchaser shall deliver or cause to be delivered to Seller
on the Closing Date, concurrently with the execution of this Agreement, the
following (the "Purchaser Deliveries"):

            10.1.1 Payment of the balance of the Purchase Price payable at the
Closing, as adjusted for apportionments under Article 11 hereof and as may be
necessary to cover Purchaser's share of the Closing costs hereunder.

            10.1.2 Counterparts of the Assignment of Leases, the Bill of Sale,
the Leasing and Management Agreement, the Tenant Notice Letters, and the Notices
to Purchaser in the forms of Exhibit J and Exhibit K, duly executed and (where
required) acknowledged by Purchaser.

            10.1.3 The returns required under the Transfer Tax Laws, if any, and
any other tax laws applicable to the transactions contemplated herein.

            10.1.4 Copies of partnership resolutions and/or consents of the
constituent partners of Purchaser authorizing the execution, delivery and
performance of this Agreement and the consummation of the transaction
contemplated by this Agreement, all certified as true and correct by the general
partner of Purchaser.

            10.1.5 Other items reasonably requested by the Escrow Agent for the
sale of the Property in accordance with this Agreement or for administrative
requirements for consummating the Closing.

                                   ARTICLE 11.
                                 APPORTIONMENTS.

      Section 11.1. The following shall be apportioned between Seller and
Purchaser as of 11:59 p.m. on the day immediately preceding the Closing Date
(the "Apportionment Date") on

                                       26
<PAGE>

the basis of the actual number of days of the month which shall have elapsed as
of the Closing Date and based upon the actual number of days in the month and a
366 day year:

            11.1.1 Subject to Section 11.2, prepaid Rents.

            11.1.2 Rents collected by Seller covering the month of Closing.

            11.1.3 Real estate taxes, sewer rents and taxes, water rates and
charges (to the extent not accounted for pursuant to Section 11.1.1 above),
vault charges and taxes, business improvement district taxes and assessments and
any other governmental taxes, charges or assessments levied or assessed against
the Property or any part thereof (collectively, "Property Taxes"), on the basis
of the respective periods for which each is assessed or imposed, to be
apportioned in accordance with Section 11.3.

            11.1.4 Fuel, if any, as estimated by Seller's supplier, at current
cost, together with any sales taxes payable in connection therewith, if any (a
letter from Seller's fuel supplier shall be conclusive evidence as to the
quantity of fuel on hand and the current cost therefor).

            11.1.5 Prepaid fees for Permits assigned to Purchaser at the
Closing.

            11.1.6 Any amounts prepaid or payable under the Operating Agreements
by the owner of the Property to the extent being assumed by Purchaser at
Closing.

            11.1.7 Such other items as are customarily apportioned in real
estate closings of commercial properties in the City of Houston, State of Texas.

      Section 11.2. For the purposes of this Article 11, the following terms
shall have the following meanings: (a) "Rents" means all Base Rents, Overage
Rent, and Additional Rent; (b) "Base Rents" means monthly base rents and parking
charges under the Tenant Leases; (c) "Overage Rent" means additional or
escalation rent based upon (i) a percentage of a Tenant's gross sales during a
specified annual or other period or (ii) increases in real estate taxes,
operating expenses, labor costs, cost of living indices or porter's wages; and
(d) "Additional Rent" means items of rent or charges which are not Base Rents or
Overage Rents, such as charges for electricity, steam, water, cleaning, overtime
services, sundry charges or other charges of a similar nature.

            11.2.1 Rents shall be adjusted and prorated on an if, as, and when
collected basis. Rents collected by Purchaser or Seller after the Closing Date
from any Tenant who owes Rents for periods prior to the Closing Date shall be
applied, (a) first, in payment of all Rents due and owing from such Tenant for
all periods following the Closing Date; (b) second, in payment of all Rents due
and owing from such Tenant for the calendar month in which the Closing Date
occurs (Rents applied under this subclause (b) shall be prorated between
Purchaser and Seller on a per diem basis as of the Apportionment Date); and (c)
third, in payment of all Rents due and owing from such Tenant for all periods
prior to the Closing Date. Each such amount, less reasonable collection costs,
shall be adjusted and prorated as provided above, and the Party receiving such
amount shall, within thirty (30) days, pay to the other Party the portion
thereof to which it is so entitled.

                                       27
<PAGE>

            11.2.2 Purchaser shall use commercially reasonable efforts for a
period of one hundred eighty (180) days following the Closing Date to collect
Rents past due as of the Closing Date; provided, however, that Purchaser shall
have no obligation to commence any actions or proceedings to collect any such
past due Rents. Rents collected by Purchaser after the Closing Date to which
Seller is entitled pursuant to Section 11.2.1 above shall be paid to Seller
within thirty (30) days after receipt thereof by Purchaser. Purchaser shall
provide Seller with monthly reports setting forth the status of such collection
efforts. From and after the Closing Date, Seller shall not take any action
whatsoever to collect any Rents or other sums delinquent as of the Closing Date
from any person or entity while such person or entity is a Tenant.

            11.2.3 To the extent any portion of Overage Rent is required to be
paid monthly by Tenants on account of estimated amounts for the current period,
and at the end of each calendar year (or, if applicable, at the end of each
lease year or tax year or any other applicable accounting period) such estimated
amounts are to be recalculated based upon the actual expenses, taxes and other
relevant factors for that calendar year (or lease or tax year or other
applicable accounting period), with the appropriate adjustments being made with
such Tenants, then such portion of the Overage Rent shall be prorated between
Seller and Purchaser as of the Apportionment Date based on such estimated
payments (i.e., with (a) Seller entitled to retain all monthly installments of
such amounts with respect to periods prior to the calendar month in which the
Closing Date occurs, to the extent such amounts are as of the Closing Date
estimated to equal the amounts ultimately due to Seller for such periods, (b)
Purchaser entitled to receive all monthly installments of such amounts with
respect to periods following the calendar month in which the Closing Date
occurs, and (c) Seller and Purchaser apportioning all monthly installments of
such amounts with respect to the calendar month in which the Closing Date
occurs). At the time(s) of final calculation and collection from (or refund to)
Tenants of the amounts in reconciliation of actual Overage Rent for a period for
which estimated amounts have been prorated, there shall be a re-proration
between Seller and Purchaser of the amounts collected from or refunded to
Tenants (as the case may be). That portion of any amounts received by Purchaser
from Tenants in such reconciliation(s) which is allocable to Seller per such
re-proration shall be paid to Seller within thirty (30) days of Purchaser's
receipt thereof. Seller shall pay to Purchaser within thirty (30) days of
Purchaser's demand therefor that portion of any amounts required to be refunded
to Tenants in such reconciliation(s) which is allocable to Seller per such
re-proration.

            11.2.4 To the extent that any Tenant, pursuant to a right contained
in an existing Tenant Lease, conducts an audit respecting any Overage Rent or
Additional Rent calculation (a "Rent Audit") for an accounting period that
expired prior to the Closing Date, or otherwise becomes entitled to a refund of
Overage Rent or Additional Rent with respect to a period prior to the Closing
Date, Seller shall be liable for any refunds due to such Tenant or shall be
entitled to receive and retain any additional payments due from such Tenant as
the result of such Rent Audit. The results of any Rent Audit for any other
accounting period shall be apportioned in the same manner as Rents. Rent Audits
for accounting periods that expire prior to the Closing Date shall be settled by
Seller in accordance with the applicable existing Tenant Lease, subject to
Purchaser's approval, which shall not be unreasonably withheld, delayed or
conditioned; provided, however, that Purchaser's consent to any such settlement
shall not be required if the Tenant as part of such settlement agrees in writing
(and an original counterpart (or certified (by Seller) copy) is promptly
delivered to Purchaser) that such settlement shall not be binding on any

                                       28
<PAGE>

landlord in calculating similar amounts for subsequent periods and that such
Tenant will not introduce any such settlement in challenging amounts due in any
such subsequent periods. Rent Audits for accounting periods prior to the Closing
Date but extending after the Closing Date shall be settled by Purchaser in
accordance with the applicable existing Tenant Lease, but Seller shall receive
notice of all negotiations or proceedings in connection therewith, shall have
the right to participate and/or intervene therein and shall be entitled to
approve all matters to be approved by the landlord under the applicable existing
Tenant Lease in connection therewith, which approval shall not be unreasonably
withheld, delayed or conditioned.

            11.2.5 To the extent that any amounts are paid or payable to Seller
by a Tenant under a Tenant Lease in advance of the period to which such expense
applies, whether as a one time payment or in installments (e.g. for real
property tax escalations), such amounts shall be apportioned as provided above
but based upon the period for which such payments were or are being made.

      Section 11.3. Property Taxes shall be apportioned on the basis of the
fiscal period for which assessed. If the Closing takes place before an
assessment is made or a tax rate is fixed for the tax period in which the
Closing Date occurs, the apportionment of such Property Taxes based thereon
shall be made at the Closing by applying the tax rate for the preceding year to
the latest assessed valuation, but, promptly after the assessment and tax rate
for the current year are fixed, the apportionment thereof shall be recalculated
and Seller or Purchaser, as the case may be, shall make an appropriate payment
to the other within thirty (30) days based on such recalculation. If as of the
Closing Date the Property or any portion thereof shall be affected by any
Property Taxes which are or may become payable in installments of which an
installment is then a lien and has become payable, Seller shall pay the unpaid
installments of such assessments which are due prior to the Closing Date and
Purchaser shall pay the installments which are due on or after the Closing Date.

      Section 11.4. If there are water meters, the unfixed water rates and
charges and sewer rents and taxes covered by meters, if any, shall be
apportioned (a) on the basis of an actual reading done within thirty (30) days
prior to the Apportionment Date, or (b) if such reading has not been made, on
the basis of the last available reading. If the apportionment is not based on an
actual current reading, then upon the taking of a subsequent actual reading, the
Parties shall, within thirty (30) days following notice of the determination of
such actual reading, readjust such apportionment and Seller shall deliver to
Purchaser or Purchaser shall deliver to Seller, as the case may be, the amount
determined to be due upon such readjustment.

      Section 11.5. Charges for all electricity, steam, gas and other utility
services (collectively, "Utilities") shall be billed to Seller's account up to
the Apportionment Date and, from and after the Apportionment Date, all Utilities
shall be billed to Purchaser's account. If for any reason such changeover in
billing is not practicable as of the Closing Date as to any Utility, such
Utility shall be apportioned on the basis of actual current readings or, if such
readings have not been made, on the basis of the most recent bills that are
available. If any apportionment is not based on an actual current reading, then
upon the taking of a subsequent actual reading, the Parties shall, within thirty
(30) days following notice of the determination of such actual reading, readjust
such apportionment and Seller shall deliver to Purchaser, or Purchaser shall
deliver to Seller, as the case may be, the amount determined to be due upon such
adjustment.

                                       29
<PAGE>

      Section 11.6. Purchaser shall have no right to receive any rental
insurance proceeds which relate to the period prior to the Closing Date and, if
any such proceeds are delivered to Purchaser, Purchaser shall, within thirty
(30) days following receipt thereof, pay the same to Seller.

      Section 11.7. Seller shall be responsible for the payment of all leasing
costs and expenses arising out of Tenant Leases (including, without limitation,
all tenant improvement costs, all outstanding tenant improvement allowances, any
Tenant Inducement Costs (hereinafter defined), and all outstanding leasing
commissions) identified on Schedule 5.1.2(e) as the expense of "Crescent".
Purchaser shall be responsible for the payment of all leasing costs and expenses
arising out of Tenant Leases (including, without limitation, all tenant
improvement costs, all outstanding tenant improvement allowances, any Tenant
Inducement Costs, and all outstanding leasing commissions) identified on
Schedule 5.1.2(e) as Purchaser's expense. Consistent with the foregoing
provisions, the Parties have agreed that Seller's obligations hereunder
pertaining to payment of such leasing costs, including certain free rent, and
expenses arising out of Tenant Leases shall be satisfied and discharged by means
of a credit to Purchaser at Closing in an agreed amount as reflected in the
settlement statement executed by the Parties contemporaneously herewith. If as
of the Closing Date Seller shall have paid any items for which Purchaser is
responsible pursuant to the foregoing provisions, Purchaser shall reimburse
Seller therefor at Closing, provided that Seller has supplied invoices and
statements for any items to Purchaser on or before the Closing Date; and
provided further, that if Seller has not supplied invoices and statements for
any such items to Purchaser on or before the Closing Date, then Seller shall
supply such invoices and statements for any such items to Purchaser not later
than thirty (30) days after the Closing Date, whereupon Purchaser, within thirty
(30) days following receipt of such invoices and statements, shall reimburse
Seller therefor. For the purposes hereof, the term "Tenant Inducement Costs"
shall mean any out-of-pocket payments required under a Tenant Lease to be paid
by the landlord thereunder to or for the benefit of the Tenant thereunder which
is in the nature of a tenant inducement or concession, including, without
limitation, tenant improvement costs, design, refurbishment and other work
allowances, lease buyout costs, and moving allowances; provided, however, that
"Tenant Inducement Costs" shall not include loss of income resulting from any
free rental period (it being agreed that Seller shall bear such loss resulting
from any free rental period with respect to the period prior to the Closing
Date, which loss shall be deemed paid and discharged by means of the credit to
Purchaser at Closing described above in this Section 11.7, and that Purchaser
shall bear such loss with respect to the period from and after the Closing
Date).

      Section 11.8. If any payment to be made after Closing under this Article
11 shall not be paid when due hereunder, the same shall bear interest (which
shall be paid together with the applicable payment hereunder) from the date due
until so paid at a rate per annum equal to the Prime Rate (as such rate may vary
from time to time) as reported in The Wall Street Journal plus 3% (the "Default
Rate"). To the extent a payment provision in this Article 11 does not specify a
period for payment, then for purposes hereof such payment shall be due within
seven (7) business days of the date such payment obligation is triggered.

      Section 11.9. The provisions of this Article 11 shall survive the Closing.

                                       30
<PAGE>

                                   ARTICLE 12.
                          TENANT ESTOPPEL CERTIFICATES.

      The Parties acknowledge that, prior to the Effective Date hereof, (a)
Seller requested a Tenant Estoppel Certificate in the form attached hereto as
Exhibit I from each of the Tenants, including the Major Tenants; (b) Seller
delivered to Purchaser and/or Purchaser's Representatives copies of all Tenant
Estoppel Certificates obtained by Seller, each of which is identified in Exhibit
S-1 attached hereto; and (c) subject to Seller's obligation to deliver at
Closing the Seller Certificate, Purchaser has reviewed and approved the Tenant
Estoppel Certificates.

                                   ARTICLE 13.
                                    DEFAULT.

      Section 13.1. IF THE TRANSACTION HEREIN PROVIDED SHALL NOT BE CLOSED BY
REASON OF A DEFAULT UNDER THIS AGREEMENT, THEN PURCHASER OR SELLER SHALL HAVE,
AS ITS EXCLUSIVE REMEDIES, THE RIGHT TO EITHER (A) TERMINATE THIS AGREEMENT, OR
(B) SPECIFICALLY ENFORCE THIS AGREEMENT (BUT NO OTHER ACTION, FOR DAMAGES OR
OTHERWISE, SHALL BE PERMITTED), PROVIDED THAT ANY ACTION BY PURCHASER OR SELLER
FOR SPECIFIC PERFORMANCE MUST BE FILED, IF AT ALL, WITHIN THIRTY (30) DAYS OF
THE DATE HEREOF, AND THE FAILURE TO FILE WITHIN SUCH PERIOD SHALL CONSTITUTE A
WAIVER OF SUCH RIGHT AND REMEDY. IF A PARTY SHALL HAVE NOT FILED AN ACTION FOR
SPECIFIC PERFORMANCE WITHIN THE AFOREMENTIONED TIME PERIOD OR SO NOTIFIED THE
OTHER PARTY OF ITS ELECTION TO TERMINATE THIS AGREEMENT, SUCH PARTY'S SOLE
REMEDY SHALL BE TO TERMINATE THIS AGREEMENT IN ACCORDANCE WITH CLAUSE (A) ABOVE.
IF SPECIFIC PERFORMANCE IS UNAVAILABLE BECAUSE SELLER HAS SOLD THE PROPERTY TO A
BONA FIDE PURCHASER FOR VALUE FOR A PURCHASE PRICE IN EXCESS OF THE PURCHASE
PRICE, PURCHASER SHALL HAVE THE RIGHT TO SUE SELLER FOR "BENEFIT OF THE BARGAIN"
DAMAGES (I.E. THE DIFFERENCE BETWEEN THE PURCHASE PRICE PAID BY SUCH BONA FIDE
PURCHASER AND THE PURCHASE PRICE); PROVIDED, HOWEVER, THAT AS A CONDITION
PRECEDENT TO PURCHASER EXERCISING ANY RIGHT IT MAY HAVE TO BRING SUCH A DAMAGE
ACTION AS A RESULT OF SELLER'S SALE OF THE PROPERTY TO A BONA FIDE PURCHASER FOR
VALUE, PURCHASER MUST COMMENCE SUCH AN ACTION WITHIN THIRTY (30) DAYS AFTER THE
OCCURRENCE OF SUCH DEFAULT AND PURCHASER AGREES THAT FAILURE TO TIMELY COMMENCE
SUCH ACTION FOR "BENEFIT OF THE BARGAIN" DAMAGES WITHIN SUCH THIRTY (30) DAY
PERIOD SHALL BE DEEMED A WAIVER OF SUCH RIGHT TO COMMENCE SUCH ACTION. EXCEPT AS
EXPRESSLY PROVIDED HEREIN, IN NO EVENT SHALL EITHER PARTY HAVE THE RIGHT TO
RECOVER DAMAGES FROM THE OTHER ON ACCOUNT OF ANY DEFAULT. THE PARTIES HEREBY
WAIVE ANY ACTION UNDER THE TEXAS DECEPTIVE TRADE PRACTICES ACT. THE PROVISIONS
OF THIS SECTION 13.1 SHALL SURVIVE THE CLOSING.

                                       31
<PAGE>

      Section 13.2. From and after the Closing Date, if any Party (the
"Breaching Party") breaches a covenant herein that survives the Closing, (a) the
other Party will refrain from bringing any Action based thereon or from
otherwise exercising any of its remedies hereunder without first giving the
Breaching Party thirty (30) days' prior written notice and opportunity to cure
such breach to the reasonable satisfaction of the other Party; provided, that if
the Breaching Party is unable to cure such breach within such thirty (30) day
period, the Breaching Party shall be allowed additional time as is reasonably
necessary to cure the breach so long as the Breaching Party commences curative
efforts within the initial thirty (30) day period and diligently pursues such
efforts to completion; and provided further, that the preceding clause regarding
additional time to cure shall be inapplicable to any breach of a covenant to pay
money; and (b) if the Breaching Party fails to cure the breach in accordance
with the foregoing provisions, then the other Party shall have the right to
avail itself of all legal and equitable remedies available to the other Party by
reason of the Breaching Party's default, except that in no event shall the other
Party have the right to recover consequential damages. The Parties agree that
the foregoing provisions of this Article 13 shall not be applicable to claims
for breaches of representations or warranties, which claims shall be governed by
the provisions of Article 6 hereof. The provisions of this Article 13 shall
survive the Closing. If Seller is the Breaching Party, after the expiration of
the foregoing notice and opportunity to cure provisions, Purchaser shall have
the right to bring an action against Seller (and/or Crescent if such claim
arises under Article 6 hereof).

                                   ARTICLE 14.
                                    NOTICES.

      All demands, requests or other communications (collectively, "Notices")
required to be given or which may be given hereunder shall be in writing and
shall be sent by (a) certified or registered mail, return receipt requested,
postage prepaid, or (b) national prepaid overnight delivery service, or (c)
telecopy or other facsimile transmissions (followed with hard copy sent by
national prepaid overnight delivery service), or (d) personal delivery with
receipt acknowledged in writing, directed to:

     Seller:            c/o Crescent Real Estate Equities Limited Partnership
                        777 Main Street, Suite 2100
                        Fort Worth, Texas 76102-5325
                        Attention: Executive Vice President, Capital Markets
                        Facsimile No.: (817) 321-2020

     with a copy to:    Haynes and Boone, LLP
                        901 Main Street, Suite 3100
                        Dallas, Texas 75202-3789
                        Attention: Steven R. Jenkins, Esq.
                        Facsimile: (214) 200-0485

     Purchaser:         c/o J.P. Acquisition Investment Management Inc.
                        522 Fifth Avenue
                        New York, New York 10036
                        Attention: Frederick N. Sheppard
                        Facsimile: (212) 837-2604

                                       32
<PAGE>

     with a copy to:    Stroock & Stroock & Lavan LLP
                        180 Maiden Lane
                        New York, New York 10038
                        Attention: Brian Diamond, Esq.
                        Facsimile: (212) 806-6006

     with a copy to:    Stutzman, Bromberg, Esserman & Plifka,
                        A Professional Corporation
                        2323 Bryan Street, Suite 2200
                        Dallas, Texas 75201-2689
                        Attention: John E. Bromberg
                        Facsimile: (214) 969-4999

     Crescent:          Crescent Real Estate Equities Limited Partnership
                        777 Main Street, Suite 2100
                        Fort Worth, Texas 76102-5325
                        Attention: Executive Vice President, Capital Markets
                        Facsimile: (817) 321-2010

     with a copy to:    Haynes and Boone, LLP
                        901 Main Street, Suite 3100
                        Dallas, Texas  75202-3789
                        Attention: Steven R. Jenkins, Esq.
                        Facsimile: (214) 200-0485

      Any Notice so sent by certified or registered mail shall be deemed given
on the date of receipt or refusal as indicated on the return receipt. All other
Notices shall be deemed given when actually received or refused by the party to
whom the same is directed. A Notice may be given either by a party or by such
party's attorney. Seller and Purchaser may designate by not less five (5)
business days' Notice given to the other in accordance with the terms of this
Article, additional or substituted parties to whom Notices should be sent
hereunder. The provisions of this Article 14 shall survive the Closing.

                                   ARTICLE 15.
                                   AMENDMENTS.

      This Agreement may not be modified or terminated orally or in any manner
other than by an agreement in writing signed by all the Parties hereto or their
respective successors in interest. The provisions of this Article 15 shall
survive the Closing.

                                   ARTICLE 16.
                          GOVERNING LAW; CONSTRUCTION.

      This Agreement (a) shall be governed by the laws of the State of Texas
without giving effect to conflict of laws principles thereof, and (b) shall be
given a fair and reasonable construction in accordance with the intentions of
the parties hereto and without regard to, or aid

                                       33
<PAGE>

of, any rules of construction requiring construction against any party drafting
this Agreement. Each party hereto acknowledges that it has participated in the
drafting of this Agreement, and any applicable rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not
be applied in connection with the construction or interpretation hereof. Each
party has been represented by independent counsel in connection with this
Agreement. For purposes of construction of this Agreement, provisions that are
deleted or crossed out shall be treated as if never included herein. The
provisions of this Article 16 shall survive the Closing.

                                   ARTICLE 17.
                CONSENT TO JURISDICTION/WAIVER OF TRIAL BY JURY.

      The Parties and Crescent agree to submit to personal jurisdiction in the
state or federal court in Harris County, Texas in any Action arising out of this
Agreement and, in furtherance of such agreement, the Parties and Crescent hereby
agree and consent that without limiting other methods of obtaining jurisdiction,
personal jurisdiction over the Parties and Crescent in any such Action may be
obtained within or without the jurisdiction of any state or federal court
located in Harris County, Texas and that any process or notice of motion or
other application to any such court in connection with any such action or
proceeding may be served upon the Parties and Crescent by registered or
certified mail to or by personal service at the last known address of the
Parties and Crescent, whether such address be within or without the jurisdiction
of any such court. The Parties and Crescent recognize that courts outside Harris
County, Texas may also have jurisdiction over Actions arising out of this
Agreement, and in the event that any Party or Crescent shall institute a
proceeding involving this Agreement in a jurisdiction outside Harris County,
Texas, the one instituting such proceeding shall indemnify any other Party or
Crescent for any losses and expenses that may result from the breach of the
foregoing covenant to institute such proceeding only in a state or federal court
in Harris County, Texas, including without limitation any additional expenses
incurred as a result of litigating in another jurisdiction, such as reasonable
fees and expenses of local counsel and travel and lodging expenses for parties,
witnesses, experts and support personnel. Seller, Crescent and Purchaser hereby
irrevocably and unconditionally waive any and all right to trial by jury in any
action, suit or counterclaim arising in connection with, out of or otherwise
relating to this Agreement. The provisions of this Article 17 shall survive the
Closing.

                                   ARTICLE 18.
                               PARTIAL INVALIDITY.

      If any provision of this Agreement is held to be invalid or unenforceable
as against any person or under certain circumstances, the remainder of this
Agreement and the applicability of such provision to other persons or
circumstances shall not be affected thereby. Each provision of this Agreement
shall be valid and enforceable to the fullest extent permitted by Law. The
provisions of this Article 18 shall survive the Closing.

                                       34
<PAGE>

                                   ARTICLE 19.
                                  COUNTERPARTS.

      This Agreement may be executed in any number of counterparts, each of
which shall constitute an original, but all of which, taken together, shall
constitute but one and the same instrument.

                                   ARTICLE 20.
                          NO THIRD PARTY BENEFICIARIES.

      This Agreement is an agreement solely for the benefit of Seller and
Purchaser, and except to the extent of Crescent's joinder herein solely for the
purposes of Article 6, Article 7, Article 13, Article 16 and Article 17 hereof,
no other person, party or entity shall have any rights hereunder nor shall any
other person, party or entity be entitled to rely upon the terms, covenants and
provisions contained herein. The provisions of this Article 20 shall survive the
Closing.

                                   ARTICLE 21.
                                     WAIVER.

      No failure or delay of either Party in the exercise of any right given to
such Party hereunder or the waiver by any Party of any condition hereunder for
its benefit (unless the time specified herein for exercise of such right, or
satisfaction of such condition, has expired) shall constitute a waiver of any
other or further right nor shall any single or partial exercise of any right
preclude other or further exercise thereof or any other right. The waiver of any
breach hereunder shall not be deemed to be waiver of any other or any subsequent
breach hereof. The provisions of this Article 21 shall survive the Closing.

                                   ARTICLE 22.
                                   ASSIGNMENT.

      No Party to this Agreement shall have the right to assign all or any
portion of its rights or obligations hereunder without the prior written consent
of each other Party to this Agreement; provided, that in no event shall
Purchaser be relieved of any of its rights or obligations hereunder. The
provisions of this Article 22 shall survive the Closing.

                                   ARTICLE 23.
                                 BINDING EFFECT.

      This Agreement is binding upon, and shall inure to the benefit of, the
Parties and each of their respective successors and permitted assigns, if any;
provided, however, that none of the representations or warranties made by Seller
hereunder shall inure to the benefit of any person or entity that may, after the
Closing Date, succeed to Purchaser's interest in the Property other than an
assignee of Purchaser with respect to which Seller has granted its consent in
accordance with Article 22 hereof. The provisions of this Article 23 shall
survive the Closing.

                                       35
<PAGE>

                                   ARTICLE 24.
                                ENTIRE AGREEMENT.

      This Agreement (together with the Ancillary Agreements and the instruments
or documents delivered pursuant to this Agreement or in connection with the
transactions contemplated hereby) is the entire agreement between the Parties
and there are no other terms, obligations, covenants, representations,
statements or conditions, oral or otherwise, of any kind whatsoever. Any
agreement hereafter made shall be ineffective to change, modify, discharge or
effect an abandonment of this Agreement in whole or in part unless such
agreement is in writing and signed by the party against whom enforcement of the
change, modification, discharge or abandonment is sought.

                                   ARTICLE 25.
                                ATTORNEYS' FEES.

      In the event of any litigation between the Parties hereto to enforce any
of the provisions of this Agreement or any right of either Party hereto, the
unsuccessful Party to such litigation agrees to pay to the successful Party all
costs and expenses, including reasonable attorneys' fees and disbursements,
incurred herein by the successful Party in and as part of the judgment rendered
in such litigation.

                                   ARTICLE 26.
                               PARAGRAPH HEADINGS.

      The headings of the various articles of this Agreement have been inserted
only for the purpose of convenience and are not part of this Agreement and shall
not be deemed in any manner to modify, expand, explain or restrict any of the
provisions of this Agreement.

                                   ARTICLE 27.
                             SIMULTANEOUS CLOSINGS.

      It shall be a condition precedent to the obligations of Seller and
Purchaser hereunder that the Closing shall occur simultaneously with the
closings of each of the transactions contemplated by the Houston Center Contract
and The Crescent Contract.

                                   ARTICLE 28.
                                 MISCELLANEOUS.

      Section 28.1. Possession of the Land and Improvements, and the Personalty
relating thereto, shall be delivered to Purchaser by Seller at the Closing,
subject to the Permitted Exceptions. Purchaser shall make its own arrangements
for the provision of Utilities to the Property and Seller shall terminate its
contracts with such utility companies that provide Utilities to the Property.

      Section 28.2. The Parties acknowledge that, prior to the Closing Date,
they conferred and agreed on a press release to be issued jointly by Purchaser
and Seller disclosing the transaction and the appropriate time for making such
release. Neither Purchaser nor Seller shall issue any press releases (or other
public statements except as many be required by law) with

                                       36
<PAGE>

respect to the transaction contemplated in this Agreement without approval of
the other Party, which approval may be withheld in such other Party's sole and
absolute discretion. Notwithstanding any terms or conditions in this Agreement
to the contrary, no conditions of confidentiality within the meaning of IRC
Section 6111(d) or the Treasury Regulations promulgated under IRC Sec. 6011 are
intended, and the parties hereto are expressly authorized to disclose every U.S.
federal income tax aspect of any transaction covered by this Agreement with any
and all persons, without limitation of any kind. The provisions of this Section
28.2 shall survive the Closing.

      Section 28.3. Seller and Purchaser will do, execute, acknowledge and
deliver all and every such further acts, deeds, conveyances, assignments,
notices, transfers and assurances as may be reasonably required by the other
Party, for the better assuring, conveying, assigning, transferring and
confirming unto Purchaser the Property and for carrying out the intentions or
facilitating the consummation of this Agreement. The provisions of this Section
28.3 shall survive the Closing.

      Section 28.4. It is expressly agreed by the Parties hereto that time is of
the essence with respect to this Agreement and Closing hereunder. The provisions
of this Section 28.4 shall survive the Closing.

      Section 28.5. All references to "business days" contained hereunder are
references to normal working business days, i.e., Monday through Friday of each
calendar week, exclusive of federal and national bank holidays. In the event
that any event hereunder is to occur, or a time period is to expire, on a date
which is not a business day, such event shall occur or such time period shall
expire on the next succeeding business day. The provisions of this Section 28.5
shall survive the Closing.

      Section 28.6. Either Seller, on the one hand, or Purchaser, on the other
hand (the "Exchanging Party"), may consummate the purchase and sale of the
Property as part of one (1) or more so-called like-kind exchanges (each, an
"Exchange") pursuant to Section 1031 of the Code including all or any portion of
the Property, provided that: (i) the Exchanging Party shall effect an Exchange
through an assignment of its rights (including, without limitation, an
assignment of all or any portion of the deposits) under this Agreement to a
qualified intermediary or an exchange accommodation titleholder; and (ii) the
other Party shall not be required to take an assignment of the purchase
agreement for the replacement property or be required to acquire or hold title
to any real property for purposes of consummating an Exchange. Anything in this
Agreement to the contrary notwithstanding, for purposes of facilitating separate
Exchanges by the respective partners of the Exchanging Party or prior to
Closing, the Exchanging Party may distribute interests in the Property among the
partners of the Exchanging Party or entities which are controlled by or under
common control with any one or more of such partners and engage in multiple
Exchanges, provided that such transfers shall be subject to, and the transferees
shall assume and agree to be bound by, the provisions of this Agreement; and
provided that any such distribution shall not release the Exchanging Party from
its obligations under this Agreement. The other Party shall not by this
Agreement or acquiescence to an Exchange (1) have its rights under this
Agreement affected or diminished in any manner or (2) be responsible for
compliance with or be deemed to have warranted to the Exchanging Party that the
Exchange in fact complies with Section 1031 of the Code. The Exchanging Party
shall indemnify, defend and hold the other Party

                                       37
<PAGE>

harmless from and against any and all liabilities, claims, damages, expenses
(including, without limitation, reasonable attorneys' fees), taxes, fees,
proceedings and causes of action of any kind or nature whatsoever arising out of
or resulting solely from such Exchange or attempted Exchange. The obligations of
the Exchanging Party under the preceding sentence shall survive Closing.

      Section 28.7. In no event shall this Agreement or any memorandum hereof be
recorded in the public records of the place in which the Land is situated, and
any such recordation or attempted recordation shall constitute a breach of this
Agreement by the Party responsible for such recordation or attempted
recordation. The provisions of this Section 28.7 shall survive the Closing.

      Section 28.8. All schedules and exhibits attached hereto are incorporated
herein by reference.

      Section 28.9. With respect to any letters of credit held by Seller as
security under the Tenant Leases or the Guaranties that are required to be
delivered to Purchaser pursuant to Section 9.1.9 hereof, (a) Seller shall
deliver to Purchaser at Closing the original of each such letter of credit, and
(b) Seller, at Seller's sole cost, shall cause all such letters of credit to be
transferred and reissued in Purchaser's name and delivered to Purchaser as soon
as practicable following the Closing. Between the Closing Date and the date of
any such transfer to Purchaser, Seller shall draw upon such letter of credit,
and promptly deliver the proceeds thereof to Purchaser, upon Purchaser's
notification to Seller that the tenant or the guarantor under the applicable
Tenant Lease or Guaranty has defaulted such that Purchaser, as the landlord or
beneficiary thereunder, is entitled to draw upon the letter of credit. The
provisions of this Section 28.9 shall survive the Closing.

      Section 28.10. Notwithstanding anything to the contrary herein, Seller and
Purchaser acknowledge and agree that (a) Seller is unable as of the Closing Date
to obtain or deliver to Purchaser the Easement and Right-of-Way Agreement
Estoppel, due in part to a disagreement between Seller and 2200 Post Oak, L.P.
regarding responsibility for certain street maintenance and repair costs
relating to the street that is the subject of the Easement and Right-of-Way
Agreement (the "Street"); and (b) in lieu of the Easement and Right-of-Way
Agreement Estoppel, Seller hereby agrees to indemnify, defend and hold Purchaser
harmless from and against any and all Damages incurred by Purchaser from or in
connection with any maintenance and/or repairs to the Street pertaining to
damage to the Street occurring prior to the Closing Date.

      Section 28.11. It is not the intent of the Parties that Purchaser, by
closing the transactions contemplated herein, should assume any liability for
pending Actions pertaining to, or claims asserted against, the Property as of
the Closing Date. Accordingly, Seller agrees to indemnify, defend and hold
Purchaser harmless from and against any and all Damages incurred by Purchaser
from or in connection with any such pending Actions pertaining to, or claims
asserted against, the Property as of (but not after) the Closing Date.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       38
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
to be effective as of the Effective Date.

                             SELLER:

                             CRESCENT REAL ESTATE FUNDING X, L.P.,
                             a Delaware limited partnership

                             By: CRE Management X, LLC,
                                 a Delaware limited liability company,
                                 its general partner

                             By: Crescent Real Estate Equities, Ltd.,
                                 a Delaware corporation, its manager

                                  By: /s/ Dennis H. Alberts
                                      ---------------------------------
                                  Name:
                                        -------------------------------
                                  Title: President
                                         ------------------------------

                             PURCHASER:

                             CRESCENT POC INVESTORS, L.P.,
                             a Delaware limited partnership

                             By: Crescent POCI GP, LLC,
                                 a Delaware limited liability company,
                                 its general partner

                                  By: /s/ Dennis H. Alberts
                                      ---------------------------------
                                  Name:
                                        -------------------------------
                                  Title: President
                                         ------------------------------

                                       39
<PAGE>


                             SOLELY FOR THE PURPOSES OF ARTICLE 6, ARTICLE 7,
                             ARTICLE 13, ARTICLE 16 AND ARTICLE 17:

                             CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP,
                             a Delaware limited partnership,

                             By: Crescent Real Estate Equities, Ltd., its
                                 general partner

                                 By:    /s/ Dennis H. Alberts
                                        ------------------------------
                                 Name:
                                        ------------------------------
                                 Title: President
                                        ------------------------------

                                       40
<PAGE>

                                LIST OF EXHIBITS

<Table>
<S>      <C>
A        PROPERTY DESCRIPTION
B        SPECIAL WARRANTY DEED
C        ASSIGNMENT AND ASSUMPTION OF LEASES
D        BLANKET CONVEYANCE, BILL OF SALE AND ASSIGNMENT
E        NON-FOREIGN AFFIDAVIT
F        TENANT NOTICE LETTER
G        PERMITTED EXCEPTIONS
H        LIST OF REPORTS
I        TENANT ESTOPPEL CERTIFICATE
J        FORM OF NOTICE TO PURCHASER
K        FORM OF NOTICE TO PURCHASERS
L        EXXON PIPELINE ESTOPPEL CERTIFICATE
M        EASEMENT AND RIGHT-OF-WAY AGREEMENT ESTOPPEL CERTIFICATE (FOR TRACT II)
N        GRANT OF EASEMENT ESTOPPEL CERTIFICATE (FOR TRACT III)
O        AGREEMENT ESTOPPEL CERTIFICATE (BROCHSTEINS & AMBASSADOR OWNERS)
P        UCC SEARCHES
Q        INTENTIONALLY OMITTED
R        SELLER CERTIFICATE
S-1 and S-2       TENANT ESTOPPEL SCHEDULES
</Table>

The foregoing exhibits have been omitted and will be furnished to the Commission
upon request.