REAL ESTATE PURCHASE AND SALE AGREEMENT




                                 BY AND BETWEEN




                      KANSAS EPA LABORATORY, LLC, AS SELLER




                                       AND




                             CAPLEASE, LP, AS BUYER




                              DATED: JULY 18, 2005

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                     REAL ESTATE PURCHASE AND SALE AGREEMENT

THIS REAL ESTATE PURCHASE AND SALE AGREEMENT  ("AGREEMENT")  is made this 18 day
of July, 2005 (the "EFFECTIVE Date") by and between KANSAS EPA LABORATORY , LLC,
a Missouri limited liability company  ("SELLER"),  and CAPLEASE,  LP, a Delaware
limited partnership ("BUYER").

                              W I T N E S S E T H:
In  consideration  of the mutual  covenants and  agreements set forth herein the
parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                SALE OF PROPERTY

Seller agrees to sell, transfer and assign and Buyer agrees to purchase,  accept
and assume,  subject to the terms and conditions stated herein,  all of Seller's
right,  title and interest in and to the following (herein  collectively  called
the "PROPERTY"):

      1.1 REAL  PROPERTY.  That  certain  real  property  described in Exhibit A
      attached hereto and incorporated  herein by this reference,  together with
      all buildings,  improvements  and fixtures located thereon and all rights,
      privileges and appurtenances  pertaining thereto including all of Seller's
      right,  title and interest in and to all  rights-of-way,  open or proposed
      streets,  alleys,  easements,  strips  or gores of land  adjacent  thereto
      (herein collectively called the "REAL PROPERTY"); and

      1.2 PERSONAL  PROPERTY.  All tangible  personal  property  owned by Seller
      (excluding  any computer  software which either (a) is licensed to Seller,
      or (b) Seller deems proprietary), located on the Real Property and used in
      the ownership,  operation, management and maintenance of the Real Property
      and  all   nonconfidential   books,   records  and  files  (excluding  any
      appraisals,  strategic  plans for the Real  Property,  internal  analyses,
      marketing  information,  submissions  relating  to Seller's  obtaining  of
      corporate   authorization,   attorney   and   accountant   work   product,
      attorney-client   privileged  documents,   or  other  information  in  the
      possession or control of Seller or Seller's  property manager which Seller
      deems  proprietary)  relating to the Real  Property  (herein  collectively
      called the "PERSONAL PROPERTY"); and

      1.3 OTHER PROPERTY RIGHTS.  (a) Seller's interest as landlord in the lease
      for the tenant of the Real  Property  on the  Closing  Date (as defined in
      Section 6.1) as listed on Exhibit M (herein the  "LEASE");  and (b) if and
      to the extent assignable by Seller without any expense to Seller,  (i) all
      service,  supply,  maintenance,  utility and  commission  agreements,  all
      equipment leases, and all contracts,  subcontracts and agreements relating
      to  the  construction  of  any  unfinished  tenant  improvements  and  any
      additional service, supply,  maintenance or utility contracts entered into
      in  accordance  with the  terms of  Subsection  9.2.1  hereof  (all of the
      foregoing being herein collectively called the "CONTRACTS"),  and (ii) all
      licenses,  permits and other written authorizations necessary for the use,
      operation  or  ownership of the Real  Property or Personal  Property  (the
      rights and  interests  of Seller  described  in clauses  (a)  through  (b)
      hereinabove being herein collectively called the "OTHER PROPERTY RIGHTS").

                                    ARTICLE 2
                                 PURCHASE PRICE

The total purchase price to be paid by Buyer for the purchase of the Property is
as more particularly set forth in a Supplemental  Agreement dated as of the date
hereof  (the  "SUPPLEMENTAL  AGREEMENT")  between  Seller  and Buyer  ("PURCHASE
PRICE"). The Purchase Price shall be paid in the following manner:

      2.1 DEPOSIT  MONEY.  Within  three (3) business  days after the  Effective
      Date, and as a condition precedent to the effectiveness of this Agreement,
      Buyer  shall  deposit  an amount set forth in the  Supplemental  Agreement
      ("INITIAL EARNEST MONEY") with First American Title Insurance Company, 633
      Third Avenue, New York, New York 10017,  Attention:  Bruce Clay, as escrow
      agent  ("ESCROW  AGENT").  If Buyer approves or is deemed to have approved
      the  Property as set forth in Section 4.2 of this  Agreement,  Buyer shall
      deposit  an  additional  amount  set forth in the  Supplemental  Agreement
      ("ADDITIONAL  EARNEST  MONEY") with Escrow Agent (the  Additional  Earnest
      Money and the Initial Earnest Money are collectively  hereinafter referred
      to as the "DEPOSIT").  The Deposit shall be nonrefundable except as herein
      provided.   The  Deposit   shall  be  deposited  by  Escrow  Agent  in  an
      interest-bearing  account, and any interest earned on the Deposit shall be
      considered a part of the Deposit.  Except as expressly otherwise set forth
      herein,  the Deposit  shall be applied  against the Purchase  Price on the
      Closing Date.

      2.2 CASH AT  CLOSING.  On the Closing  Date,  Buyer shall pay to Seller an
      amount  equal  to  the  Purchase  Price,  subject  to the  prorations  and
      adjustments  set forth in Article 5 or as  otherwise  provided  under this
      Agreement,  plus any other amounts required to be paid by Buyer at Closing
      (as  defined in  Section  6.1),  in  immediately  available  funds by wire
      transfer as more particularly set forth in Section 6.2.

                                    ARTICLE 3
                                  TITLE MATTERS

      3.1 TITLE TO REAL  PROPERTY.  Seller has  delivered to Buyer a preliminary
      title  report for the Real  Property,  together  with  copies of all items
      shown  as   exceptions   to  title  in  the   preliminary   title   report
      (collectively,  the  "TITLE  REPORT")  prepared  by First  American  Title
      Insurance  Company  ("TITLE  COMPANY").  Buyer has ordered and is awaiting
      receipt  of an ALTA  As-Built  survey  of the  Real  Property  ("SURVEY").
      Fifteen (15) business  days after Buyer's  receipt of the Title Report and
      Survey ("APPROVAL DATE"),  Buyer shall provide written notice to Seller of
      any matters shown by the Title Report or Survey which are not satisfactory
      to Buyer  ("TITLE  Notice").  In the event Buyer  disapproves  one or more
      items in the Title Notice  ("DISAPPROVED  EXCEPTIONS"),  then, within five
      (5) business  days after  receipt of the Title  Notice,  Seller may notify
      Buyer  in  writing  of  Seller's  election  to  cause  one or  more of the
      Disapproved  Exceptions  to be  eliminated  prior to the Closing  Date (as
      defined below), or, alternatively,

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      Seller may notify  Buyer in writing  that  Seller  does not intend to take
      action  to   eliminate   one  or  more  of  the   Disapproved   Exceptions
      (alternatively,  "SELLER'S  NOTICE").  Seller's  failure to timely deliver
      Seller's  Notice shall be deemed to  constitute  Seller's  election not to
      take action to eliminate  any of such  Disapproved  Exceptions.  Except as
      provided  below,  Seller  shall  have no  obligation  to cause  any of the
      Disapproved Exceptions to be eliminated.

Within three (3) business days after the earlier to occur of (i) Buyer's receipt
of Seller's  Notice  specifying  which  Disapproved  Exceptions  Seller does not
intend to  eliminate,  or (ii) the date on which  Seller  last could have timely
delivered  Seller's  Notice,  Buyer shall have the right to accept  title to the
Real Property  subject to such Disapproved  Exceptions,  provided Buyer notifies
Seller in writing of such  acceptance  within such five (5) business day period.
Buyer's  failure to so notify  Seller  within such five (5)  business day period
shall be deemed  to  constitute  Buyer'  election  to  approve  the  Disapproved
Exceptions and to purchase the Property  subject to the Disapproved  Exceptions.
The term "Permitted  Exceptions"  shall  hereinafter  refer to (a) title matters
approved  or  deemed  approved  by  Buyer  pursuant  to  this   paragraph,   (b)
nondelinquent  real property  taxes,  (c) any  exceptions  caused by Buyer,  its
agents,  representatives or employees, (d) the printed terms and conditions in a
ALTA (or equivalent form customarily used in the jurisdiction where the Property
is located) Owner's  Extended  Coverage Title Insurance  Policy,  (e) applicable
zoning  and  building  ordinances  and land use  regulations  and (f) the Lease.
Notwithstanding  anything to the contrary,  except as may be expressly  provided
with respect to Buyer's  assumption of the existing bond  financing,  if any, in
all other instances,  Seller shall remove prior to the Closing Date, at Seller's
sole cost and  expense,  the lien of any deed of trust or  mortgage  encumbering
Seller's  interest  in the Real  Property  and the lien of any  delinquent  real
property taxes encumbering the Real Property. Prior to the Closing, Seller shall
provide to Title  Company an affidavit  stating the name of the single tenant of
the Real Property.  Notwithstanding  any provision to the contrary  contained in
this Agreement or any of the documents to be executed in connection  herewith or
pursuant hereto, any or all of the Permitted Exceptions may be omitted by Seller
in the Deeds (as  defined  in  Subsection  6.3(a))  without  giving  rise to any
liability  of  Seller,  irrespective  of any  covenant  or  warranty  of  Seller
contained in the Deeds (which  provisions  shall  survive the Closing and not be
merged therein).

            3.1.1  DISCHARGE OF TITLE  OBJECTIONS.  If on the Closing Date there
            are  any  Title  Objections  which  Seller  has  elected  to pay and
            discharge,  Seller  may use any  portion  of the  Purchase  Price to
            satisfy the same,  provided Seller shall either (a) deliver to Buyer
            at the Closing  instruments  in  recordable  form and  sufficient to
            cause such Title Objections to be released of record,  together with
            the cost of recording or filing such  instruments,  or (b) cause the
            Title Company to insure over the same,  without any additional  cost
            to Buyer,  whether such insurance is made available in consideration
            of payment, bonding, indemnity of Seller or otherwise.

      3.2 TITLE INSURANCE. At Closing, the Title Company shall issue to Buyer an
      ALTA  Owner's  Form of title  insurance  policy  in the form of the  Title
      Report  ("OWNER'S  TITLE  POLICY"),  in the amount of the Purchase  Price,
      insuring  that fee simple  title to the Real  Property  is vested in Buyer
      subject  only to the  Permitted  Exceptions.  Buyer  shall be  entitled to
      request that the Title Company provide such  endorsements  (or amendments)
      to the Owner's Title Policy as Buyer may reasonably require, provided that
      (a) such  endorsements  (or amendments)  shall be at no cost to, and shall
      impose no additional  liability on, Seller, (b) Buyer's  obligations under
      this  Agreement  shall not be conditioned  upon Buyer's  ability to obtain
      such  endorsements  and, if Buyer is unable to obtain  such  endorsements,
      Buyer shall  nevertheless be obligated to proceed to close the transaction
      contemplated by this Agreement ("TRANSACTION") without reduction of or set
      off against the Purchase  Price,  and (c) the Closing shall not be delayed
      as a result of Buyer's request.

                                   ARTICLE 4
                 BUYER'S DUE DILIGENCE/CONDITION OF THE PROPERTY

      4.1  BUYER'S  INSPECTIONS  AND  DUE  DILIGENCE.  Buyer  acknowledges  that
      commencing  prior to the execution of this  Agreement and continuing for a
      period which will expire on July 8, 2005 ("DUE DILIGENCE  PERIOD"),  Buyer
      has  conducted,   and  shall  continue  to  conduct,   its   examinations,
      inspections,  testing,  studies and/or investigations (herein collectively
      called the "DUE  DILIGENCE") of the Property.  By way of example,  and not
      limitation,   the  Due  Diligence  shall  include  Buyer's  evaluation  of
      information   regarding  the  Property  and  such  documents  in  Seller's
      possession applicable to the Property,  including, but not limited to, the
      Title Report, the Survey, the Lease, the Contracts, the Property Documents
      (as defined in Subsection  6.3(l)),  the  environmental  reports listed on
      Exhibit B attached hereto and incorporated  herein by this reference,  and
      such other nonproprietary,  nonprivileged  reports,  documents,  books and
      records  which  pertain to the  Property as Buyer has deemed or shall deem
      necessary or  appropriate  (all of the  foregoing  documents  being herein
      collectively  called the  "DOCUMENTS").  Buyer shall not have the right to
      perform  any  invasive  testing of the  Property  without  Seller's  prior
      written  consent,  which  Seller may give or  withhold,  in Seller's  sole
      discretion.  In  connection  with  such  due  diligence,  subject  to  the
      limitations in Section 1.2, Seller shall deliver any documents  reasonably
      requested by Buyer and in the  possession  of Seller or Seller's  property
      manager, within three (3) business days following such request.

      4.2 TERMINATION OF AGREEMENT DURING DUE DILIGENCE  PERIOD. If Buyer is not
      satisfied,  in  Buyer's  sole  discretion,  with  the  results  of its Due
      Diligence  during  the Due  Diligence  Period,  Buyer may  terminate  this
      Agreement  by  written  notice  to  Seller  given in  accordance  with the
      provisions  of Section 14.9 hereof at any time prior to 5:00 p.m.  Central
      Time on the last day of the Due  Diligence  Period,  and,  in the event of
      such  termination,  neither  Seller  nor Buyer  shall  have any  liability
      hereunder  except  for  those  obligations  which  expressly  survive  the
      termination of this Agreement and Buyer shall be entitled to the return of
      the Deposit. In the event Buyer fails to terminate this Agreement prior to
      5:00 p.m. Central Time on the last day of the Due Diligence Period,  Buyer
      shall be deemed to have waived its rights to terminate  this  Agreement in
      accordance  with this  Article 4 and shall be  obligated  to  deliver  the
      Additional  Earnest Money to the Escrow Agent.  Subject to Seller's  prior
      approval, which shall not be unreasonably withheld or delayed, Buyer shall
      have the right after the expiration of the Due Diligence Period to conduct
      further  physical  examinations,   inspections,  testing,  studies  and/or
      investigations  regarding the Property, but such additional  examinations,
      inspections,  testing,  studies and/or investigations shall not extend the
      Due Diligence Period.

      4.3 BUYER'S  CERTIFICATE.  Buyer shall deliver to Seller at the Closing, a
      certificate  in the form of  Exhibit C attached  hereto  and  incorporated
      herein by this reference.

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                                    ARTICLE 5
                           ADJUSTMENTS AND PROBATIONS

The following adjustments and proration shall be made at Closing:

      5.1 LEASE RENTALS AND EXPENSES. Subject to the provisions of this Section,
      Rent (as defined below) shall be prorated as of the Closing.  Seller shall
      be entitled to all Rents attributable to any period prior to and including
      the day on which the  Closing  occurs,  and Buyer shall be entitled to all
      Rent attributable to any period after the day on which the Closing occurs.
      "RENT" as used herein shall mean the fixed  monthly  rents and  escalation
      rents and any tax and operating  cost  reimbursements  due from the tenant
      under the Lease. Tax reimbursements  include, but are not limited to, real
      property tax  reimbursements.  Pursuant to the terms of the Lease, rent is
      paid  monthly,  in arrears.  At Closing,  Seller shall be entitled to, and
      receive a credit  for all  accrued  but  unpaid  Rent and  which  right to
      collect same shall be assigned to Buyer. In addition,  in the event Seller
      shall have paid any tax reimbursements  which remain due and unpaid by the
      tenant under the Lease,  Seller shall  receive at Closing a credit for any
      such tax  reimbursement  and which right to collect same shall be assigned
      to Buyer at Closing.  Seller's and Buyer's  rights and  obligations  under
      this section shall survive the Closing.

      5.2 TAXES.  Real estate taxes and assessments on the Property shall not be
      prorated as such costs are the  obligation  of the tenant  under the Lease
      and will be reimbursed  pursuant to the terms thereof.  Buyer shall accept
      the property subject to all non-delinquent taxes and assessments and shall
      subsequently  be responsible for the payment of same and collection of the
      reimbursement  from the tenant under the Lease. As provided in Section 5.1
      herein,  in the event  Seller  shall have paid any real  estate  taxes and
      assessments  on the Property and  submitted  same for  reimbursement  from
      tenant  pursuant to the terms of the Lease,  Seller shall receive a credit
      for  such  reimbursement  at  Closing  and  which  right to  collect  such
      reimbursement  shall be  assigned  to Buyer at  Closing.  Seller  shall be
      entitled to retain the full amount of any tax refund  received by Buyer or
      Seller after the Closing and attributable to a period prior to the Closing
      to the extent such refund is not owed to the tenant pursuant to the Lease.
      Buyer shall promptly  deliver the full amount of such tax refund to Seller
      if it is received by Buyer.

      5.3 UTILITIES.  Seller shall attempt to cause the utility and water meters
      to be read by the  applicable  utility  provider  on the day  prior to the
      Closing or as close to the  Closing as is possible if a reading on the day
      prior to the Closing cannot be obtained,  and shall be responsible for the
      cost of all  utilities  and water used  prior to that time,  except to the
      extent such utility charges are billed to and paid by tenants directly. To
      the  extent  utility  readings  cannot  be taken  on the day  prior to the
      Closing,  Buyer and Seller shall reasonably estimate what the readings are
      likely to have been as of the Closing  based on the actual  reading,  when
      the actual  reading  occurred and such  information as may be available to
      Buyer and Seller  relating to daily usage  rates.  Any security or service
      deposits  delivered  by  Seller to  utility  providers,  and any  interest
      required  to be paid  thereon,  shall be and remain the sole  property  of
      Seller, and any refund of such security deposits shall be made directly to
      Seller  except to the extent such deposits are assigned to Buyer by Seller
      in which case,  Buyer shall be debited and Seller  credited  the amount of
      such assigned deposits. On the Closing,  except to the extent such utility
      accounts  are in the name of the tenant,  Buyer  shall cause all  accounts
      with utility  companies to be changed to its name,  and all utility  bills
      for periods from and after the Closing shall be paid by Buyer.

      5.4 CLOSING COSTS.  Buyer shall pay (a) the cost of all  endorsements  and
      all premiums and charges of the Title Company for the Owner's Title Policy
      (b)  the  cost of  updating  the  Survey,  (c) all  recording  charges  in
      connection with the instruments by which Seller conveys the Property,  (d)
      one-half of all escrow  charges,  (e) all costs of Buyer's Due  Diligence,
      including fees due its  consultants  and attorneys,  (f) all lenders' fees
      related to any financing to be obtained by Buyer, if any, (g) all personal
      property  taxes  and (h) all  mortgage  registration  taxes  and any other
      recording fees, taxes or other expenses  applicable to any financing to be
      obtained by Buyer and the cost of all  endorsements  and all  premiums and
      charges of the Title  Company  for any Loan Title  Policy  relating to any
      financing  to be obtained by Buyer.  Seller  shall pay (a) one-half of all
      escrow  charges,  (b) all fees due its attorneys,  and (c) all documentary
      transfer  taxes  applicable  to the  transfer  of a  parcel  of  the  Real
      Property,  if any. The  obligations  of the parties under this Section 5.4
      shall  survive  the  Closing  (and not be merged  therein)  or any earlier
      termination of this Agreement.

      5.5 ESCROWED FUNDS. Seller shall be entitled to all escrowed funds held on
      behalf of Seller by Security Bank of Kansas City  determined to be surplus
      at  reconciliation  and  attributable to any period prior to and including
      the day on which the Closing occurs.

      5.6 APPORTIONMENT  CREDIT.  In the event the  apportionments to be made at
      the Closing  result in a credit  balance  (i) to Buyer,  such sum shall be
      paid at the Closing by giving Buyer a credit against the Purchase Price or
      (ii) to Seller, Buyer shall pay the amount of the credit to Seller through
      escrow on the Closing in addition to the Purchase Price.

      5.7  DELAYED  ADJUSTMENT;   DELIVERY  OF  OPERATING  AND  OTHER  FINANCIAL
      STATEMENTS.  If at any time  following the Closing Date,  the amount of an
      item listed in any section of this  Article 5 shall prove to be  incorrect
      (whether as a result in an error in  calculation or a lack of complete and
      accurate  information  as of the  Closing),  the party in whose  favor the
      error was made shall  promptly pay to the other party the sum necessary to
      correct such error upon receipt of proof of such error, provided that such
      proof is  delivered  to the party  from whom  payment is  requested  on or
      before  eighteen (18) months after Closing (such period being  referred to
      herein as the "POST CLOSING ADJUSTMENT PERIOD"). In order to enable Seller
      to determine whether any such delayed adjustment is necessary, Buyer shall
      provide to Seller  current  operating  and  financial  statements  for the
      Property no later than the date one (1) month prior to the  expiration  of
      the  Post-Closing  Adjustment  Period  and at other  times  upon  Seller's
      written  request.  The  provisions  of this Section 5.7 shall  survive the
      Closing and not be merged therein.

                                    ARTICLE 6
                                     CLOSING

Buyer and Seller  hereby  agree that the  Transaction  shall be  consummated  as
follows:

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      6.1 CLOSING DATE. The Transaction  shall close July 22, 2005 (the "CLOSING
      DATE").  References  in this  Agreement to the  "CLOSING" or the "CLOSE OF
      ESCROW"  shall mean the date the deed  conveying  title to the Property to
      Buyer is recorded.  The Closing shall be conducted through the escrow with
      Escrow Agent. Time is of the essence with respect to the Closing Date.

      6.2 TITLE TRANSFER AND PAYMENT OF PURCHASE PRICE.  Provided all conditions
      precedent to Seller's  obligations  hereunder have been satisfied,  Seller
      agrees to convey the  leasehold  estate to the Real Property to Buyer upon
      confirmation  of receipt of the Purchase  Price by the Escrow Agent as set
      forth below.  Provided  all  conditions  precedent to Buyer's  obligations
      hereunder have been satisfied, Buyer agrees to pay the amount specified in
      Article 2 by timely  delivering the same to the Escrow Agent no later than
      1:00 p.m. Central Time on the Closing Date and  unconditionally  directing
      the Escrow  Agent to deposit  the same in Seller's  designated  account by
      2:00 p.m.  Central Time on the Closing Date.  For each full or partial day
      after the  Closing  Date that  Seller has not  received in its account the
      payment  specified  in Article 2, Buyer  shall pay to Seller one (1) day's
      interest  on the  unpaid  funds at the rate per annum  equal to the "prime
      rate"  as  announced  from  time  to  time  by The  Wall  Street  Journal.
      Notwithstanding the foregoing,  provided Seller is not in default,  Seller
      shall  have the  right to  terminate  this  Agreement  at any time if such
      payment is not  received in  Seller's  designated  account  within one (1)
      business day after the Closing Date.

      6.3 SELLER'S CLOSING DELIVERIES. At the Closing, Seller shall deliver or
      cause to be delivered the following:

            (a)   Assignment  of Lease.  An  assignment  and  assumption  of the
                  Lease,   in  the  form  of  Exhibit  A  attached   hereto  and
                  incorporated herein by this reference ("ASSIGNMENT OF LEASE").

            (b)   Bill of Sale. A bill of sale in the form of Exhibit E attached
                  hereto and incorporated herein by this reference.

            (c)   Assignment  of Lease.  An  assignment  and  assumption  of the
                  Lease,   in  the  form  of  Exhibit  F  attached   hereto  and
                  incorporated herein by this reference ("ASSIGNMENT OF LEASE").

            (d)   Assignment of Contracts.  An assignment  and assumption of the
                  Contracts  and the Other  Property  Rights  (to the extent the
                  same  are  not  transferred  by the  Deeds,  Bill  of  Sale or
                  Assignment of Lease) in the form of Exhibit G attached  hereto
                  and  incorporated  herein by this  reference  ("ASSIGNMENT  OF
                  CONTRACTS").

            (e)   Notice to Tenant.  A single form letter in the form of Exhibit
                  H attached  hereto and  incorporated  herein by this reference
                  which shall be sent by Buyer after Closing to the tenant under
                  the Lease ("NOTICE TO TENANT").

            (f)   Novation Agreement Letter. A fully executed Novation Agreement
                  Letter in the form of Exhibit I attached hereto and
                  incorporated herein by this reference ("NOVATION AGREEMENT
                  LETTER"), executed by the Contracting Officer of the United
                  States Government. If Seller is unable to obtain a fully
                  executed Novation Agreement Letter, Seller shall not be in
                  default under this Agreement. If Seller is unable to obtain a
                  fully executed Novation Agreement Letter, either party shall
                  have the right to elect, as its sole and exclusive remedy, to
                  terminate this Agreement by written notice to the other party,
                  promptly after which the Deposit shall be returned to Buyer.

            (g)   Non-Foreign  Status Affidavit.  A non-foreign status affidavit
                  in the form of  Exhibit J  attached  hereto  and  incorporated
                  herein by this  reference,  as required by Section 1445 of the
                  Internal Revenue Code.

            (h)   Seller's  Certificate.  The  certificate of Seller  certifying
                  that the  matters  set forth in Section 8.2 are still true and
                  correct in all material respects.

            (i)   Other  Documents.  Such other  documents as may be  reasonably
                  required  by the Title  Company  or as may be  agreed  upon by
                  Seller  and Buyer to  consummate  the  Transaction;  provided,
                  however,  Seller  shall not be  obligated to incur any cost or
                  subject  itself  to any  liability  not  contemplated  by this
                  Agreement in order to provide such documents.

            (j)   Termination of Existing Management Agreement. Documentation of
                  termination of any existing management  agreement for the Real
                  Property.

            (k)   Statement of Lease. Buyer shall have received not later than
                  five days prior to the Closing Date, an executed statement of
                  lease (the "STATEMENT") from tenant in the form which tenant
                  is required to provide pursuant to the terms of the Lease. The
                  Statement shall be dated no earlier than thirty (30) days
                  prior to the initially scheduled Closing Date and shall be
                  substantially in the form of Exhibit K attached hereto and
                  incorporated herein by this reference. The Statement shall be
                  executed by the Contracting Officer (as defined in the Lease)
                  in the form of a letter stating that: (i) the Lease is in full
                  force and effect, (ii) the date to which the rent and other
                  charges have been paid in advance, if any, and (iii) whether
                  any notice of default has been issued. The Statement shall be
                  subject to the following conditions: (i) that the Statement is
                  based solely on a reasonably diligent review of the
                  Contracting Officer's lease file as of the date of issuance,
                  (ii) that the Government (as defined in the Lease) shall not
                  be held liable because of any defect in or condition of the
                  premises or building, (iii) that the Contracting Officer does
                  not warrant or represent that the premises or building comply
                  with applicable Federal, State and local law and (iv) that the
                  Lessor (as defined in the Lease) and any prospective
                  purchaser, including Buyer, are deemed to have constructive
                  notice of such facts as would be ascertainable by reasonable
                  pre-purchase and pre-commitment inspection of the premises and
                  building and by inquiry to appropriate Federal, State and
                  local government officials.

                                        5
<PAGE>

            (l)   Property Documents.  To the extent in the possession of Seller
                  or the  current  property  managers  of Seller,  all books and
                  records  subject to the  limitations set forth in Section 1.2,
                  relating  exclusively  to the operation and  management of the
                  Property (collectively, the "PROPERTY DOCUMENTS").

            (m)   Keys and  Original  Documents.  Keys to all  locks on the Real
                  Property in Seller's or Seller's building manager's possession
                  and originals or, if originals are not available,  copies,  of
                  the Leases and Contracts.

            (n)   Rating Agency Confirmation. Written confirmation from Moody's
                  Investors Service that the rating assigned to the $22,075,000
                  Unified Government of Wyandotte County/Kansas City, Kansas,
                  Taxable Industrial Revenue Bonds, Series 2001 will not be
                  qualified, downgraded or withdrawn (i) as a result of the sale
                  of the Property to Buyer, or (ii) in the event the direct or
                  indirect owners of Buyer obtain a loan that is secured by a
                  pledge or assignment of such ownership interest. If Seller is
                  unable to obtain such rating agency confirmation, Seller shall
                  not be in default under this Agreement. If Seller is unable to
                  obtain such rating agency confirmation, either party shall
                  have the right to elect, as its sole and exclusive remedy, to
                  terminate this Agreement by written notice to the other party,
                  promptly after which the Deposit shall be returned to Buyer.

            (o)   Trustee and Bondholder Consent. As required under that certain
                  Lease dated as of February 1, 2001 (the "Lease") between the
                  Unified Government of Wyandotte County/Kansas City, Kansas
                  (the "County"), as the Issuer, and Seller, as the Tenant and
                  that certain Trust Indenture dated as of February 1, 2001,
                  between the County, as the Issuer, and Security Bank of Kansas
                  City, as the Trustee (the "Indenture"), written consent of the
                  County, Trustee and Owners (as such terms are defined in the
                  Indenture) to (a) the sale of the Property to Buyer, and (b)
                  any future financing that will be secured by a pledge and
                  assignment of the direct or indirect ownership interest in
                  Buyer. If Seller is unable to obtain such Trustee and
                  Bondholder consents, Seller shall not be in default under this
                  Agreement. If Seller is unable to obtain such Trustee and
                  Bondholder consents, either party shall have the right to
                  elect, as its sole and exclusive remedy, to terminate this
                  Agreement by written notice to the other party, promptly after
                  which the Deposit shall be returned to Buyer.

            (p)   County Estoppel  Certificate.  Written  verification  from the
                  County  that there is no default or event that with the giving
                  or notice or passage of time would  constitute a default under
                  the Lease and of the date  through  which the last  payment of
                  Basic Rent has been made.

The items to be delivered by Seller in accordance  with the terms of Subsections
(a) through (j) of this  Section 6.3 shall be  delivered  to the Escrow Agent no
later than 5:00 p.m.  Central Time on the last business day prior to the Closing
Date.  The  estoppel  certificate  described  in Section (k) of this Section 6.3
shall be delivered in accordance  with Section (k). The items to be delivered by
Seller in accordance  with the terms of Subsections  (l) and (m) of this Section
6.3 shall be  delivered  outside of escrow and shall be deemed  delivered if the
same  are  located  at the  Property  on the  Closing  Date or if they  are made
available  to Buyer for pick up at  Seller's  main  offices  or at the office of
Seller's current property manager.

      6.4 BUYER'S CLOSING DELIVERIES. At the Closing, Buyer shall deliver or
      cause to be delivered to Seller the following:

            (a)   Purchase   Price.   The  Purchase   Price,   as  adjusted  for
                  apportionments  and  other  adjustments  required  under  this
                  Agreement, plus any other amounts required to be paid by Buyer
                  at Closing.

            (b)   Assignment  of Lease.  The  Assignment  of Lease  executed and
                  acknowledged by Buyer.

            (c)   Assignment of Contracts.  The Assignment of Contracts executed
                  and acknowledged by Buyer.

            (d)   Buyer's Certificates.  The certificate of Buyer required under
                  Article 4 hereof and a certificate  of Buyer  certifying as to
                  the matters set forth in Section 8.1.

            (e)   Property   Management   Agreement.   The  Property  Management
                  Agreement  (as  hereinafter  defined  in  Article  9)  with CB
                  Richard  Ellis  and  BC  Development   Company   executed  and
                  acknowledged by Buyer.

            (f)   Other  Documents.  Such other  documents as may be  reasonably
                  required by the Title  Company or may be agreed upon by Seller
                  and Buyer to consummate the Transaction.

The  Purchase  Price shall be paid in  accordance  with the terms of Section 6.2
hereof and the items to be  delivered by Buyer in  accordance  with the terms of
Subsections (b) through (f) of this Section 6.4 shall be delivered to the Escrow
Agent no later than 5:00 p.m. Central Time on the last business day prior to the
Closing Date.

                                    ARTICLE 7
                              CONDITIONS TO CLOSING

      7.1 SELLER'S OBLIGATIONS. Seller's obligation to close the Transaction is
      conditioned on all of the following, any or all of which may be waived by
      Seller by an express written waiver, at its sole option:

                                        6
<PAGE>

            (a)   Representations  True. All representations and warranties made
                  by Buyer in this  Agreement  shall be true and  correct in all
                  material respects on and as of the Closing Date, as if made on
                  and as of such date except to the extent they expressly relate
                  to an earlier date;

            (b)   Buyer's Financial Condition.  No petition has been filed by or
                  against Buyer under the Federal Bankruptcy Code or any similar
                  state or federal Law, whether now or hereafter existing; and

            (c)   Buyer's  Deliveries  Complete.  Buyer shall have delivered the
                  funds  required  hereunder  and  all  of the  documents  to be
                  executed  by Buyer set  forth in  Section  6.4 and shall  have
                  performed  all  other  material  covenants,  undertakings  and
                  obligations, and complied with all conditions required by this
                  Agreement,  to be  performed  or complied  with by Buyer at or
                  prior to the Closing.

            (d)   Buyer Closing on All Portfolio Contracts. Buyer or affiliates
                  of Buyer shall be obligated to simultaneously Close the
                  acquisition of 8660 South Sandy Parkway, Sandy, Utah 84070,
                  and 920 18th Street North, Birmingham, Alabama 35203, and 1100
                  18th Street North, Birmingham, Alabama 35203, and 1029 Camino
                  La Costa, Austin, Texas 78752 (collectively along with the
                  Property referred to as the "Portfolio Properties") under
                  separate Real Estate Purchase and Sale Agreements with
                  entities affiliated with Seller (collectively along with this
                  Agreement the "Portfolio Agreements"). The parties agree that
                  the Buyer shall have no right to elect to purchase less than
                  all of the Portfolio Properties pursuant to the Portfolio
                  Agreements. The parties further agree that any determination
                  by Buyer or any other purchaser under any of the Portfolio
                  Agreements to not acquire any of the Portfolio Properties
                  shall be deemed to be a determination by Buyer not to acquire
                  the Property.

      7.2 BUYER'S OBLIGATIONS. Buyer's obligation to close the Transaction is
      conditioned on all of the following, any or all of which may be waived by
      Buyer by an express written waiver, at its sole option:

            (a)   Representations  True.  Subject to the  provisions  of Section
                  8.3, all representations and warranties made by Seller in this
                  Agreement,  as the same may be amended as  provided in Section
                  8.3, shall be true and correct in all material respects on and
                  as of the  Closing  Date,  as if made  on and as of such  date
                  except to the extent that they expressly  relate to an earlier
                  date; and

            (b)   Title Conditions Satisfied.  At the time of the Closing, title
                  to the  Property  shall be as  provided  in  Article 3 of this
                  Agreement; and

            (c)   Seller's Deliveries Complete.  Seller shall have delivered all
                  of the documents and other items required  pursuant to Section
                  6.3 and shall have  performed  all other  material  covenants,
                  undertakings and obligations, and complied with all conditions
                  required by this  Agreement,  to be performed or complied with
                  by Seller at or prior to the Closing.

            (d)   No Lease  Default.  No default has  occurred or is  continuing
                  under the Lease.

      7.3 WAIVER OF FAILURE OF CONDITIONS PRECEDENT.  At any time or times on or
      before the date specified for the satisfaction of any condition, Seller or
      Buyer may elect in writing to waive the benefit of any such  condition set
      forth  in  Section  7.1 or  Section  7.2,  respectively.  By  closing  the
      Transaction, Buyer shall be conclusively deemed to have waived the benefit
      of any remaining  unfulfilled  conditions set forth in Section 7.2. In the
      event any of the  conditions  set forth in Sections 7.1 or 7.2 are neither
      waived nor fulfilled,  Seller or Buyer (as  appropriate) may exercise such
      rights and remedies permitted by the terms of Article 10 hereof.

      7.4 APPROVALS NOT A CONDITION TO BUYER'S  PERFORMANCE.  Subject to Buyer's
      right to  terminate  this  Agreement  prior to the  expiration  of the Due
      Diligence  Period in accordance with the terms of Article 4 hereof,  Buyer
      acknowledges  and  agrees  that  its  obligation  to  perform  under  this
      Agreement  is not  contingent  upon  Buyer's  ability  to  obtain  any (a)
      governmental or quasi governmental approval of changes or modifications in
      use or zoning,  or (b)  modification of any existing land use restriction,
      or (c)  consents  to  assignments  of any  service  contracts,  management
      agreements or other agreements  which Buyer requests,  or (d) endorsements
      to the Owner's Title Policy.

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

      8.1 BUYER'S REPRESENTATIONS. Buyer represents and warrants to, and
      covenants with, Seller as follows:

            8.1.1  Buyer's  Authorization.  Buyer  (a)  is  duly  organized  (or
            formed),  validly  existing and in good  standing  under the laws of
            Delaware (b) is authorized to consummate the Transaction and fulfill
            all  of  its   obligations   hereunder   and  under  all   documents
            contemplated  hereunder  to be  executed  by Buyer,  and (c) has all
            necessary  power to  execute  and  deliver  this  Agreement  and all
            documents  contemplated  hereunder  to be executed by Buyer,  and to
            perform  all of  its  obligations  hereunder  and  thereunder.  This
            Agreement and all documents contemplated hereunder to be executed by
            Buyer,  have been duly  authorized by all requisite  partnership  or
            corporate  action on the part of Buyer and are the valid and legally
            binding  obligations of Buyer,  enforceable in accordance with their
            respective  terms.  Neither  the  execution  and  delivery  of  this
            Agreement and all documents contemplated hereunder to be executed by
            Buyer,  nor the performance of the obligations of Buyer hereunder or
            thereunder  will result in the violation of any Law or any provision
            of the  agreement of  partnership  of Buyer will  conflict  with any
            order or decree of any court or governmental  instrumentality of any
            nature by which Buyer is bound.

            8.1.2 Buyer's Financial Condition.  No petition has been filed by or
            against Buyer under the Federal Bankruptcy Code or any similar state
            or federal Law.

                                        7
<PAGE>

      8.2 SELLER'S REPRESENTATIONS. Seller represents and warrants to Buyer as
      follows:

            8.2.1  Seller's  Authorization.  Seller  (a) is duly  organized  (or
            formed), validly existing and in good standing under the laws of its
            State  of  organization  and the  State  in which  the  Property  is
            located, (b) is authorized to consummate the Transaction and fulfill
            all  of  its   obligations   hereunder   and  under  all   documents
            contemplated  hereunder  to be executed  by Seller,  and (c) has all
            necessary  power to  execute  and  deliver  this  Agreement  and all
            documents  contemplated  hereunder  to be  executed by Seller and to
            perform its obligations hereunder and thereunder. This Agreement and
            all documents  contemplated  hereunder to be executed by Seller have
            been duly  authorized by all requisite  action on the part of Seller
            and  are  the  valid  and  legally  binding   obligation  of  Seller
            enforceable in accordance with their respective  terms.  Neither the
            execution   and  delivery  of  this   Agreement  and  all  documents
            contemplated  hereunder to be executed by Seller nor the performance
            of the obligations of Seller  hereunder or thereunder will result in
            the  violation of any Law or will  conflict with any order or decree
            of any court or governmental  instrumentality of any nature by which
            Seller is bound.

            8.2.2 Other Seller's Representations:

            (a)   To Seller's knowledge,  except as listed in Exhibit L attached
                  hereto  and  incorporated  herein  by  this  reference,  or as
                  disclosed in the due diligence  information provided by Seller
                  to Buyer during the Due Diligence Period,  Seller has not been
                  served  with a  complaint  in any  legal  action  which  would
                  adversely affect the Property after the Closing.

            (b)   Exhibit L  attached  hereto is a true,  correct  and  complete
                  listing of all Contracts and as of the date of this Agreement,
                  Seller has not entered into any service,  supply,  maintenance
                  or utility  contracts  affecting the Property  which cannot be
                  terminated on thirty (30) days' advance  written  notice other
                  than Exhibit L.

            (c)   To Seller's knowledge,  except as listed on Exhibit L attached
                  hereto,  or as  disclosed  in the  due  diligence  information
                  provided by Seller to Buyer during the Due  Diligence  Period,
                  as of the  Effective  Date,  Seller  has  received  no written
                  notice from a federal, state or local governmental agency that
                  the Property is as of the date of this  Agreement in violation
                  of a law, code or ordinance.

            (d)   As of the  date of this  Agreement,  the  only  tenant  of the
                  Property is the tenant listed in Exhibit M attached hereto and
                  incorporated herein by this reference.

            (e)   Subject to the matters disclosed in the Statement, the Lease
                  is in full force and effect and, to Seller's knowledge, no
                  uncured breach or default exists on the part of the lessee
                  thereunder, nor has any written or oral notice been received
                  by Seller alleging any potential or alleged defaults by
                  landlord thereunder, no rent called for under the Lease has
                  been paid in advance of its due date and the lessee thereunder
                  is not asserting, to Seller's knowledge, any claim of off-set
                  or other defense in respect of its or the landlord's
                  obligations under the Lease.

            (f)   There are no leasing  commissions  due in connection  with the
                  execution of the Lease or due in  connection  with any renewal
                  or extension of the Lease.

            8.2.3 No Other Agreements. Seller has not entered into any currently
            effective  agreement to sell or dispose of all or any portion of its
            interest in and to the Property  (except for this  Agreement and any
            options to purchase  the  Property or a portion  thereof that may be
            contained in any of the Leases).

      8.3 GENERAL PROVISIONS.

            8.3.1 Intentionally Deleted.

            8.3.2  Definition of "Seller's  Knowledge".  All  references in this
            Agreement to "SELLER'S  KNOWLEDGE" or words of similar  import shall
            refer only to the actual knowledge of Richard D. Baier  ("DESIGNATED
            EMPLOYEE")  and shall not be construed to refer to the  knowledge of
            any other  officer,  agent or  employee  of Seller or any  affiliate
            thereof or to impose or have  imposed upon the  Designated  Employee
            any duty to investigate the matters to which such knowledge,  or the
            absence  thereof,  pertains,  including,  but not  limited  to,  the
            contents of the files,  documents and materials made available to or
            disclosed  to  Buyer or the  contents  of  files  maintained  by the
            Designated  Employee.  There shall be no personal  liability  on the
            part of the Designated  Employee arising out of any  representations
            or warranties made herein.

            8.3.3 Seller's  Representations  Deemed Modified. To the extent that
            Buyer knows or is deemed to know prior to the  expiration of the Due
            Diligence  Period that Seller's  representations  and warranties are
            inaccurate, untrue or incorrect in any way, such representations and
            warranties shall be deemed modified to reflect Buyer's  knowledge or
            deemed  knowledge,  as  the  case  may  be.  For  purposes  of  this
            Agreement, (a) Buyer shall be "deemed to know" of the existence of a
            fact or circumstance to the extent that such fact or circumstance is
            disclosed by this Agreement, the Documents, any estoppel certificate
            executed by any tenant of the  Property and  delivered to Buyer,  or
            any studies, tests, reports, or analyses prepared by or for Buyer or
            any of its employees,  agents,  representatives or attorneys (all of
            the  foregoing  being  herein   collectively   called  the  "BUYER'S
            REPRESENTATIVES")   or  otherwise   obtained  by  Buyer  or  Buyer's
            Representatives discloses such fact or circumstance to Buyer and (b)
            Buyer  shall be "deemed to know" that a  representation  or warranty
            was  untrue,  inaccurate  or  incorrect  to  the  extent  that  this
            Agreement,  the Documents,  any estoppel certificate executed by any
            tenant  of the  Property  and  delivered  to Buyer,  or any  Buyer's
            Representatives,   or   otherwise   obtained  by  Buyer  or  Buyer's
            Representatives contains information which is inconsistent with such
            representation or warranty.

                                        8
<PAGE>

            8.3.4  Notice  of  Breach;  Seller's  Right  to Cure.  If after  the
            expiration  of the Due  Diligence  Period but prior to the  Closing,
            Buyer or any Buyer's  Representative  obtains actual  knowledge that
            any of the  representations  or warranties made herein by Seller are
            untrue, inaccurate or incorrect in any material respect, Buyer shall
            give Seller  written notice thereof within five (5) business days of
            obtaining such knowledge (but, in any event,  prior to the Closing).
            If at or prior to the Closing,  Seller obtains actual knowledge that
            any of the  representations  or warranties made herein by Seller are
            untrue,  inaccurate  or incorrect in any  material  respect,  Seller
            shall give Buyer  written  notice  thereof  within five (5) business
            days of obtaining  such knowledge  (but, in any event,  prior to the
            Closing).  In either such event, Seller shall have the right to cure
            such  misrepresentation  or  breach  and  shall  be  entitled  to  a
            reasonable  adjournment  of the Closing  (not to exceed  ninety (90)
            days) for the  purpose of such cure.  If Seller is unable to so cure
            any  misrepresentation or breach, then Buyer, as its sole remedy for
            any and all such materially untrue, inaccurate or incorrect material
            representations or warranties,  shall elect either (a) to waive such
            misrepresentations or breaches of representations and warranties and
            consummate  the  Transaction  without  any  reduction  of or  credit
            against the Purchase  Price,  or (b) to terminate  this Agreement by
            written  notice given to Seller on the Closing  Date, in which event
            this  Agreement  shall be terminated , the Deposit shall be returned
            to Buyer, Seller shall reimburse Buyer for all reasonable legal fees
            and the costs of third party  reports,  not to exceed  $50,000  and,
            thereafter,   neither  party  shall  have  any  further   rights  or
            obligations  hereunder except as provided in any section hereof that
            by its terms expressly  provides that it survives any termination of
            this Agreement.  If any such  representation  or warranty is untrue,
            inaccurate or incorrect  but is not untrue,  inaccurate or incorrect
            in any  material  respect,  Buyer  shall be  deemed  to  waive  such
            misrepresentation or breach of warranty, and Buyer shall be required
            to  consummate  the  Transaction  without any reduction of or credit
            against the Purchase Price. The untruth, inaccuracy or incorrectness
            of a  representation  or warranty  shall be deemed  material only if
            Buyer's aggregate damages resulting from the untruth,  inaccuracy or
            incorrectness  of any  of  the  representations  or  warranties  are
            reasonably  estimated  to exceed an amount in excess of One  Hundred
            Thousand  and No/100  ($100,000.00)  Dollars.  A default of Seller's
            representation under Section 8.2.2(e) shall be deemed material.

            8.3.5   Survival;    Limitation   on   Seller's    Liability.    The
            representations  and warranties  made by Seller in Section 8.2 shall
            survive the  Closing  and not be merged  therein for a period of one
            hundred  eighty  (180) days and Seller shall only be liable to Buyer
            hereunder for a breach of a representation  and warranty made herein
            or in any of the  documents  executed by Seller at the Closing  with
            respect  to  which a claim  is made by Buyer  against  Seller  on or
            before  the two  hundred  tenth  (210t)  day  after  the date of the
            Closing. Anything in this Agreement to the contrary notwithstanding,
            the maximum  aggregate  liability of Seller for Seller's breaches of
            representations  and warranties herein or in any documents  executed
            by Seller at Closing (including, but not limited to, any of Seller's
            representation  letters  delivered  pursuant to Subsection  6.3 (j))
            shall  be   limited   as  set  forth  in   Section   14.15   hereof.
            Notwithstanding the foregoing, however, if the Closing occurs, Buyer
            hereby  expressly  waives,  relinquishes  and  releases any right or
            remedy  available to it at law, in equity or under this Agreement to
            make a claim against Seller for damages that Buyer may incur,  or to
            rescind this Agreement and the Transaction,  as the result of any of
            Seller's  representations or warranties being untrue,  inaccurate or
            incorrect  if  (a)  Buyer  knew  or is  deemed  to  know  that  such
            representation  or warranty was untrue,  inaccurate  or incorrect at
            the time of the Closing,  or (b) Buyer's damages as a result of such
            representations or warranties being untrue,  inaccurate or incorrect
            are  reasonably  estimated to aggregate less than an amount equal to
            One Hundred Thousand and No/100 ($100,000.00) Dollars.

                                    ARTICLE 9
                                    COVENANTS

      9.1 BUYER'S COVENANTS. Buyer hereby covenants as follows:

            9.1.1  Confidentiality.  Buyer  acknowledges  that  any  information
            heretofore  or  hereafter  furnished  to Buyer  with  respect to the
            Property  has been and will be so furnished  on the  condition  that
            Buyer maintain the confidentiality thereof. Accordingly, Buyer shall
            hold,  and shall cause its directors,  officers and other  personnel
            and representatives to hold, in strict confidence,  and not disclose
            to any other  person  without  the prior  written  consent of Seller
            until  the  Closing  shall  have  been   consummated,   any  of  the
            information  in  respect  of the  Property  delivered  to or for the
            benefit  of Buyer  whether  by  agents,  consultants,  employees  or
            representatives  of  Buyer  or by  Seller  or  any  of  its  agents,
            representatives  or  employees,  including,  but not limited to, any
            information  heretofore  or  hereafter  obtained  by Buyer or any of
            Buyer's Representatives in connection with any studies, inspections,
            testings  or  analyses  conducted  by  Buyer  as  part  of  its  due
            diligence. In the event the Closing does not occur or this Agreement
            is terminated,  Buyer shall promptly  return to Seller all copies of
            documents  delivered  by  Seller  to  Buyer  containing  any of such
            information without retaining any copy thereof or extract therefrom.
            Notwithstanding  anything  to the  contrary  hereinabove  set forth,
            Buyer may disclose such  information (i) on a need-to-know  basis to
            its employees, consultants, members of professional firms serving it
            or  potential  lenders,  and  (ii) as any  governmental  agency  may
            require in order to comply with applicable municipal,  county, state
            or federal statutes,  codes, ordinances,  laws, rules or regulations
            (herein   collectively  called  "LAWS").   The  provisions  of  this
            Subsection 9.1.1 shall survive any termination of this Agreement.

            9.1.2 Buyer's Indemnity; Delivery of Reports. Buyer hereby agrees to
            indemnify,  defend,  and  hold  Seller  free and  harmless  from and
            against any and all costs, losses, damages and expenses, of any kind
            or nature whatsoever (including reasonable attorneys' fees and costs
            but excluding punitive damages) arising out of or resulting from the
            breach of the terms of  Subsection  9.1.1 or the  entry  and/or  the
            conduct of  activities  upon the Property by Buyer or any of Buyer's
            Representatives  in connection with the  inspections,  examinations,
            testings and  investigations  of the Property  conducted at any time
            prior to the Closing, which indemnity shall survive the Closing (and
            not be merged therein) or any earlier termination of this Agreement.
            Buyer shall  deliver  promptly  to Seller  copies of all third party
            reports commissioned by or on behalf of Buyer evidencing the results
            of tests, studies or inspections of the Property.

            9.1.3 Limit on Government Contacts. Notwithstanding any provision in
            this  Agreement  to the  contrary,  except  in  connection  with the
            preparation  of a  so-called  "Phase I"  environmental  report  with
            respect to the  Property,  Buyer shall not contact any  governmental
            official or representative  regarding  Hazardous Materials on or the
            environmental  condition  of the  Property  without  Seller's  prior
            written  consent  thereto,  which consent shall not be  unreasonably
            withheld.  In  addition,  if Seller's  consent is obtained by Buyer,
            Seller  shall be  entitled  to  receive at least five (5) days prior
            written notice of the intended  contact and to have a representative
            present  when  Buyer  has any such  contact  with  any  governmental
            official or  representative.  As used  herein,  the term  "HAZARDOUS
            MATERIAL" shall mean any substance,

                                        9
<PAGE>

            chemical,  waste or  material  that is or becomes  regulated  by any
            federal,  state  or  local  governmental  authority  because  of its
            toxicity,     infectiousness,      radioactivity,     explosiveness,
            ignitability,   corrosiveness  or  reactivity,   including,  without
            limitation,  asbestos  or any  substance  containing  more  than 0.1
            percent  asbestos,  the group of compounds known as  polychlorinated
            biphenyls,  flammable  explosives,  oil,  petroleum  or any  refined
            petroleum product.

            9.1.4 Property Management  Agreement.  Buyer agrees that Buyer shall
            enter into a Property Management Agreement with CB Richard Ellis and
            BC  Development  Company for the  management  of the Property  after
            Closing in accordance with Property  Management  Agreement  attached
            hereto as Exhibit N and incorporated herein by reference.

            9.1.5 No Contact with  Tenant.  Buyer agrees not to make any contact
            with the tenant of the Property  without  first  obtaining the prior
            written  consent of Seller.  In  addition,  if  Seller's  consent is
            obtained by Buyer, Seller shall be entitled to receive at least five
            (5) days prior written notice of the intended  contact and to have a
            representative  present  when  Buyer has any such  contact  with the
            tenant.

      9.2 SELLER'S COVENANTS. Seller hereby covenants as follows:

            9.2.1  Service  Contracts.  Without  Buyer's  prior  consent,  which
            consent shall not be unreasonably withheld,  between the date hereof
            and the Closing  Date Seller  shall not  extend,  renew,  replace or
            modify any Contract  unless such contract (as so extended,  renewed,
            replaced or modified) can be terminated by the owner of the Property
            without penalty on not more than thirty (30) days' notice.

            9.2.2  Maintenance  of  Property.  Except  to the  extent  Seller is
            relieved of such obligations by Article 11 hereof,  between the date
            hereof and the Closing  Date,  Seller  shall  maintain  and keep the
            Property in a manner  consistent  with Seller's past  practices with
            respect to the Property; provided, however, that, subject to Buyer's
            right to terminate this Agreement prior to the expiration of the Due
            Diligence  Period in accordance  with the terms of Article 4 hereof,
            Buyer hereby  agrees that it shall  accept the Property  subject to,
            and Seller shall have no obligation to cure,  (i) any  violations of
            Laws,  and (ii) any  physical  conditions  which  would give rise to
            violations  of Laws,  which,  with  respect to both  clauses (i) and
            (ii), exist on the last day of the Due Diligence Period and of which
            Buyer has actual knowledge.  Between the date hereof and the Closing
            Date, Seller will advise Buyer of any written notice Seller receives
            after  the  date  hereof  from  any  governmental  authority  of the
            violation  of  any  Laws  regulating  the  condition  or  use of the
            Property.

            9.2.3  Access to  Property.  Between the date hereof and the Closing
            Date, Seller shall allow Buyer or Buyer's  representatives access to
            the  Property  upon  reasonable  prior  notice at  reasonable  times
            provided (a) such access does not  interfere  with the  operation of
            the Property or the rights of the tenant;  (b) after the  expiration
            of the Due Diligence Period, Buyer shall not be permitted to perform
            any further  testing or other  physical  evaluation  of the Property
            prior to Closing  except with Seller's  prior written  consent;  (c)
            Seller  or its  designated  representative  shall  have the right to
            pre-approve,  in Seller's sole discretion, and be present during any
            physical  testing of the  Property;  and (d) Buyer shall  return the
            Property  to  the  condition   existing  prior  to  such  tests  and
            inspections.

            9.2.4 Within five (5) business days  following  the Effective  Date,
            Seller shall submit a request to the Contracting  Officer to execute
            and  deliver a  Statement.  Seller  shall use good faith  efforts to
            obtain such Statement from the Contracting Officer.

            9.2.5 Seller shall,  without  incurring any expense,  cooperate with
            efforts of Buyer to obtain any title related  estoppel  certificates
            that Buyer may require.

      9.3 MUTUAL COVENANTS.

            9.3.1 Publicity. Seller and Buyer each hereby covenant that prior to
            and after the Closing neither Seller nor Buyer shall issue any press
            release  or public  statement  (a  "RELEASE")  with  respect  to the
            Transaction  without the prior  consent of the other,  which consent
            may be granted or withheld in the sole discretion of Seller,  except
            to the extent  required by applicable Law. If either Seller or Buyer
            is required by applicable Law to issue a Release,  such party shall,
            at least two (2)  business  days prior to the  issuance of the same,
            deliver a copy of the  proposed  Release to the other  party for its
            review.

            9.3.2 Broker.  Seller and Buyer expressly acknowledge that Gary Carr
            and Russell Ingrum of CB Richard Ellis,  Inc.  ("BROKER") have acted
            as the  exclusive  broker with respect to the  Transaction  and with
            respect to this  Agreement,  and that Seller shall pay the brokerage
            commission due to Broker in accordance  with the separate  agreement
            between  Seller  and  Broker  if  this  Transaction  closes  but not
            otherwise,  anything  to  the  contrary  in the  separate  agreement
            between Seller and Broker  notwithstanding (it being understood that
            the payment of the Purchase  Price to Seller and the  performance of
            all of  Buyer's  obligations  hereunder  to  Seller  are  conditions
            precedent to Seller's obligation to pay any brokerage commission due
            Broker under the separate  agreement between Seller and Broker).  By
            its execution hereof,  Broker acknowledges that Cathy Howard and Jon
            Walker  (collectively the "PARTICIPATING  BROKER") are participating
            brokers and Broker shall pay the Participating  Broker in accordance
            with the separate agreement between Broker and Participating  Broker
            if this Transaction closes but not otherwise.  Seller agrees to hold
            Buyer  harmless  and  indemnify  Buyer from and  against any and all
            damages,   costs  or  expenses  (including,   but  not  limited  to,
            reasonable attorneys' fees and disbursements) suffered by Buyer as a
            result of any claims by any party  (other than  Broker)  claiming to
            have   represented   Seller  as  broker  in   connection   with  the
            Transaction.  Buyer  agrees to hold Seller  harmless  and  indemnify
            Seller  from and  against  any and all  damages,  costs or  expenses
            (including,  but not  limited  to,  reasonable  attorneys'  fees and
            disbursements)  suffered  by Seller as a result of any claims by any
            party  (other than  Broker)  claiming to have  represented  Buyer as
            broker in connection with the Transaction.

            9.3.3 Tax Protests;  Tax Refunds and Credits.  Seller shall have the
            right to  continue  and to control  the  progress of and to make all
            decisions  with  respect to any contest of the real estate taxes and
            personal  property  taxes for the  Property  due and payable for the
            calendar

                                       10
<PAGE>

            year in which the Closing occurs and all prior calendar years. Buyer
            shall  have the right to  control  the  progress  of and to make all
            decisions  with  respect to any tax contest of the real estate taxes
            and personal property taxes for the Property due and payable for all
            calendar years  subsequent to the calendar year in which the Closing
            occurs.  All real  estate and  personal  property  tax  refunds  and
            credits received after Closing with respect to the Property shall be
            applied in the following order of priority:  first, to pay the costs
            and expenses  (including  reasonable  attorneys'  fees and expenses)
            incurred in  connection  with  obtaining  such tax refund or credit;
            second, to pay any amounts due to tenant of the Property as a result
            of such tax refund or credit to the extent required  pursuant to the
            terms of the Lease; and third,  apportioned between Buyer and Seller
            as follows:

            (a)   with respect to any refunds or credits attributable to real
                  estate and personal property taxes assessed for the calendar
                  year in which the Closing occurs (regardless of the year for
                  which such taxes are assessed), such refunds and credits shall
                  be apportioned between Buyer and Seller in proportion to the
                  number of days in such calendar year that each party owned the
                  Property (with title to the Property being deemed to have
                  passed as of 12:01 a.m. on the Closing Date);

            (b)   with  respect to any refunds or credits  attributable  to real
                  estate and  personal  property  taxes  assessed for any period
                  prior to the calendar year in which the Closing occurs, Seller
                  shall be entitled to the entire refunds and credits; and

            (c)   with  respect to any refunds or credits  attributable  to real
                  estate and  personal  property  taxes  assessed for any period
                  after the  calendar  year in which the Closing  occurs,  Buyer
                  shall be entitled to the entire refunds and credits.

            9.3.4 Survival. The provisions of this Section 9.3 shall survive the
            Closing (and not be merged  therein) or earlier  termination of this
            Agreement.

                                   ARTICLE 10
                              FAILURE OF CONDITIONS

      10.1 TO SELLER'S OBLIGATIONS.  If, on or before the Closing Date, Buyer is
      in default of any of its obligations under this Agreement, then Seller may
      elect to (a) terminate this  Agreement by written notice to Buyer;  or (b)
      proceed to close the Transaction. If this Agreement is so terminated, then
      Seller shall be entitled to retain the Deposit as liquidated damages,  and
      thereafter  neither party to this Agreement  shall have any further rights
      or obligations  hereunder  other than any arising under any section herein
      which  expressly  provides  that  it  survives  the  termination  of  this
      Agreement.

IN THE EVENT THE CONSUMMATION OF THE TRANSACTION  HEREIN  CONTEMPLATED  DOES NOT
OCCUR AS HEREIN  PROVIDED  BY REASON OF ANY  DEFAULT OF BUYER,  BUYER AND SELLER
AGREE THAT IT WOULD BE  IMPRACTICAL  AND  EXTREMELY  DIFFICULT  TO ESTIMATE  THE
DAMAGES  WHICH  SELLER MAY SUFFER.  THEREFORE,  BUYER AND SELLER DO HEREBY AGREE
THAT A REASONABLE  ESTIMATE OF THE DAMAGES THAT SELLER WOULD SUFFER IN THE EVENT
THAT BUYER  DEFAULTS  AND FAILS TO COMPLETE  THE PURCHASE OF THE PROPERTY IS AND
SHALL BE, AS SELLER'S SOLE AND EXCLUSIVE  REMEDY  (WHETHER AT LAW OR IN EQUITY),
AN AMOUNT EQUAL TO THE DEPOSIT (WHICH  INCLUDES ANY ACCRUED  INTEREST  THEREON).
SAID AMOUNT SHALL BE THE FULL,  AGREED AND LIQUIDATED  DAMAGES FOR THE BREACH OF
THIS  AGREEMENT BY BUYER,  ALL OTHER CLAIMS TO DAMAGES OR OTHER  REMEDIES  BEING
HEREIN  EXPRESSLY  WAIVED BY SELLER.  THE PAYMENT OF SUCH  AMOUNT AS  LIQUIDATED
DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY BUT IS INTENDED TO CONSTITUTE
LIQUIDATED  DAMAGES TO SELLER.  UPON DEFAULT BY BUYER,  THIS AGREEMENT  SHALL BE
TERMINATED,  AND  NEITHER  PARTY SHALL HAVE ANY  FURTHER  RIGHTS OR  OBLIGATIONS
HEREUNDER,  EACH TO THE OTHER  EXCEPT  FOR THE RIGHT OF SELLER TO  COLLECT  SUCH
LIQUIDATED  DAMAGES  FROM BUYER AND ESCROW  HOLDER.  NOTHING  CONTAINED  IN THIS
PARAGRAPH  SHALL LIMIT  SELLER'S  RIGHT TO RECOVER  ATTORNEYS  FEES AND COSTS IN
ENFORCING ITS RIGHTS UNDER THIS AGREEMENT.

        Seller's Initials: /s/ DC          Buyer's Initials: /s/ RB

      10.2 TO BUYER'S OBLIGATIONS.  If, at the Closing,  Seller is in default of
      any of its obligations  under this Agreement,  Buyer shall have the right,
      to elect, as its sole and exclusive remedy, to take one, but not more than
      one, of the following  actions:  (a) terminate  this  Agreement by written
      notice to Seller,  promptly  after which the Deposit  shall be returned to
      Buyer, and to recover the actual  out-of-pocket  expenses paid by Buyer to
      unrelated  third parties in  evaluating  the purchase of the Property in a
      total amount not to exceed Fifty Thousand Dollars ($50,000.00),  (b) waive
      the  default and  proceed to close the  Transaction  or (c) in lieu of (a)
      above bring an action  against  Seller for specific  performance.  Buyer's
      right to sue for  specific  performance  is  conditioned  upon the parties
      agreement that in order to sue for specific performance Buyer must forever
      waive any claim  against  Seller for  damages  for any breach of  Seller's
      obligations  hereunder (except as specifically  provided for below), Buyer
      will not be, in any such suit for  specific  performance,  entitled to any
      off-set or reduction in the Purchase Price,  Buyer must file any such suit
      for specific performance within ninety (90) days after Buyer becomes aware
      of the breach by Seller of its  obligations  hereunder  (and if Buyer does
      not file any such suit with such  ninety  (90) day period  Buyer  shall be
      deemed to have elected to have  terminated this  Agreement).  Seller shall
      not be  deemed to be in  default  under  this  Agreement  until  Buyer has
      provided Seller with a written notice specifying the default of Seller and
      Seller  has  failed  to cure  such  default  within  five (5)  days  after
      receiving such notice.  As a condition  precedent to Buyer  exercising any
      right it may have to bring an action to recover the  expenses  referred to
      above,  Buyer must not be in default under this Agreement,  and Buyer must
      commence an action to recover the expenses  within  ninety (90) days after
      the  occurrence  of  Seller's  default.  Buyer  agrees that its failure to
      timely commence such an action within such ninety (90) day period shall be
      deemed a waiver  by it of its right to  commence  such an  action.  In the
      event Buyer  timely  files and is  otherwise  entitled to sue for specific
      performance  hereunder,  Seller shall  reimburse  Buyer for its reasonable
      costs and  expenses  incurred by Buyer in  connection  with such  specific
      performance lawsuit.

                                       11
<PAGE>

                                   ARTICLE 11
                              CONDEMNATION/CASUALTY

      11.1 CONDEMNATION.

            11.1.1 Right to Terminate. If, prior to the Closing Date, all or any
            significant  portion (as  hereinafter  defined)  of the  Property is
            taken by eminent domain (or is the subject of a pending taking which
            has not yet been consummated),  Seller shall notify Buyer in writing
            of such  fact  promptly  after  obtaining  knowledge  thereof,  and,
            thereafter,  Buyer shall have the right to terminate  this Agreement
            by giving written notice to Seller no later than ten (10) days after
            the  giving  of  Seller's  notice,  and the  Closing  Date  shall be
            extended, if necessary, to provide sufficient time for Buyer to make
            such  election.  The  failure  by Buyer to so  elect in  writing  to
            terminate  this  Agreement  within such ten (10) day period shall be
            deemed an election to terminate this Agreement. For purposes hereof,
            a "significant portion" of the Property shall mean such a portion as
            shall have a value, as reasonably determined by Seller, in excess of
            ten  percent  (10%)  of the  Purchase  Price or  shall  result  in a
            termination  of the  Lease of the  Property,  or shall  result  in a
            reduction of the parking  spaces of the Property below the number of
            spaces  required by  applicable  Laws.  If Buyer elects to terminate
            this  Agreement as aforesaid,  the  provisions of Section 11.4 shall
            apply.

            11.1.2  Assignment  of  Proceeds.  If (a)  Buyer  does not  elect to
            terminate  this  Agreement as  aforesaid  if all or any  significant
            portion of the  Property is taken,  or (b) a portion of the Property
            not  constituting a significant  portion of the Property is taken or
            becomes subject to a pending taking, by eminent domain,  there shall
            be no abatement of the Purchase Price;  provided,  however, that, at
            the  Closing,  Seller shall pay to Buyer the amount of any award for
            or other proceeds on account of such taking which have been actually
            paid to Seller  prior to the Closing Date as a result of such taking
            (less all reasonable costs and expenses,  including  attorneys' fees
            and costs,  incurred by Seller as of the Closing  Date in  obtaining
            payment of such award or proceeds)  and, to the extent such award or
            proceeds  have not been paid,  Seller  shall  assign to Buyer at the
            Closing  (without  recourse  to Seller) the rights of Seller to, and
            Buyer shall be  entitled  to receive and retain,  all awards for the
            taking of the Property or such portion thereof.

      11.2 DESTRUCTION OR DAMAGE. In the event any of the Property is damaged or
      destroyed prior to the Closing Date,  Seller shall notify Buyer in writing
      of such fact  promptly  after  obtaining  knowledge  thereof.  If any such
      damage or destruction:  (i) (a) is an insured  casualty and (b) would cost
      less than an amount equal to ten percent  (10%) of the  Purchase  Price to
      repair or restore, and (ii) does not result in a termination of the Lease,
      then this Agreement  shall remain in full force and effect and Buyer shall
      acquire the Property upon the terms and conditions  set forth herein.  The
      cost of repair shall be determined by an architect and contractor selected
      by Seller and  reasonably  approved by Buyer.  In such event,  Buyer shall
      receive a credit against the Purchase Price equal to the deductible amount
      applicable  under  Seller's  casualty  policy less all costs and expenses,
      including reasonable  attorneys' fees and costs,  incurred by Seller as of
      the Closing Date in connection with the negotiation  and/or  settlement of
      the  casualty  claim with the insurer  ("REALIZATION  Costs"),  and Seller
      shall assign to Buyer all of Seller's right,  title and interest in and to
      all proceeds of insurance on account of such damage or destruction. In the
      event the Property is damaged or  destroyed  prior to the Closing Date and
      the cost of repair  would  equal or exceed an amount  equal to ten percent
      (10%) of the Purchase  Price,  or the  casualty is an uninsured  casualty,
      then,  notwithstanding  anything to the  contrary  set forth above in this
      section,  Buyer shall have the right,  at its election,  to terminate this
      Agreement.  Buyer shall have ten (10) days after Seller  notifies Buyer of
      the cost of  repairing  the damage to make such  election  by  delivery to
      Seller of a written  election notice  ("ELECTION  NOTICE") and the Closing
      Date shall be extended, if necessary, to provide sufficient time for Buyer
      to make such election. The failure by Buyer to deliver the Election Notice
      within such ten (10) day period  shall be deemed an election to  terminate
      this Agreement.  Notwithstanding  anything  contained in Section 7.1(d) to
      the contrary,  any  termination by Buyer under this Section 11.2 shall not
      result  in a  termination  of  Buyer's  right  to  acquire  any  remaining
      Portfolio  Properties under the Portfolio  Agreements.  In the event Buyer
      does not  elect to  terminate  this  Agreement  as set forth  above,  this
      Agreement  shall  remain in full force and effect,  Seller shall assign to
      Buyer all of  Seller's  right,  title and  interest  in and to any and all
      proceeds of  insurance on account of such damage or  destruction,  if any,
      and, if the casualty was an insured casualty, Buyer shall receive a credit
      against  the  Purchase  Price  equal to the  deductible  amount  (less the
      Realization Costs) under Seller's casualty insurance policy.

      11.3  INSURANCE.  Seller shall  maintain the property  insurance  coverage
      currently in effect for the Property through the Closing Date.

      11.4 EFFECT OF  TERMINATION.  If this Agreement is terminated  pursuant to
      Section 11.1 or Section 11.2, the Deposit shall be returned to Buyer. Upon
      such refund,  this  Agreement  shall  terminate  and neither party to this
      Agreement  shall have any further  rights or obligations  hereunder  other
      than any arising under any section herein which expressly provides that it
      shall survive the termination of this Agreement.

      11.5 WAIVER. The provisions of this Article 11 supersede the provisions of
      any applicable Laws with respect to the subject matter of this Article 11.

                                   ARTICLE 12
                                     ESCROW

The Deposit  and any other sums which the parties  agree shall be held in escrow
(herein  collectively called the "ESCROW DEPOSITS"),  together with all interest
earned  thereon,  shall be held by the Escrow Agent,  in trust,  and disposed of
only in accordance with the following provisions:

            (a)   The  Escrow  Agent  shall   invest  the  Escrow   Deposits  in
                  government insured  interest-bearing  instruments satisfactory
                  to both  Buyer and  Seller,  shall not  commingle  the  Escrow
                  Deposits  with any funds of the Escrow  Agent or  others,  and
                  shall promptly  provide Buyer and Seller with  confirmation of
                  the investments made.

            (b)   The party  entitled to the Deposit  shall pay any income taxes
                  on any interest earned on the Escrow Deposits.

                                       12
<PAGE>

            (c)   This Agreement shall constitute Escrow Agent's escrow
                  instructions. Buyer and Seller shall execute and return to
                  Escrow Agent any additional standard escrow instructions
                  Escrow Agent reasonably requests that Buyer and Seller execute
                  within two (2) business days after they are received by Buyer
                  and Seller. To the extent of any conflict between the terms
                  and conditions of this Agreement and Escrow Agent's standard
                  escrow instructions, the terms of this Agreement shall
                  control.

                                   ARTICLE 13
                                 LEASING MATTERS

      13.1 CERTAIN DEFINITIONS. For purposes of this Agreement, the following
      terms shall have the following meanings:

            "EXECUTION DATE" shall mean the date that both Buyer and Seller have
            executed this Agreement.

            "PRE-EXECUTION LEASES" shall mean, collectively, any lease for space
            at the Property executed by the landlord and the tenant on or before
            the Execution Date.

      13.2  LEASE  MODIFICATIONS.  After  the  Execution  Date and  prior to the
      expiration of the Due Diligence Period,  Seller shall not, without Buyer's
      prior  written  consent  in each  instance,  which  consent  shall  not be
      unreasonably  withheld and shall be given or denied,  with the reasons for
      such denial specified in reasonable detail,  within five (5) business days
      after  receipt  by  Buyer  of the  information  referred  to in  the  next
      sentence,  (a) modify or amend any Pre-Execution Lease (except pursuant to
      the exercise by a tenant of a renewal,  extension  or expansion  option or
      other  right  contained  in  such  tenant's  lease);  (b)  consent  to any
      assignment or sublease in connection with any Pre-Execution  Lease; or (c)
      remove  any  tenant  under any  Pre-Execution  Lease,  whether  by summary
      proceedings  or  otherwise,  (the matters set forth in  subparagraphs  (a)
      through (c) above are collectively referred to as a "Lease Modification").
      Seller shall  furnish Buyer with a written  notice of the proposed  action
      which shall  contain  information  regarding  the proposed  action that is
      reasonably  necessary  to enable  Buyer to make  informed  decisions  with
      respect  to  the  advisability  of  the  proposed  action  including,   if
      available,  any  draft  renewal,  extension,   amendment,   assignment  or
      sublease.  If Buyer fails to object in writing to any such proposed action
      within  five  (5)  business  days  after  receipt  of  the  aforementioned
      information,  Buyer shall be deemed to have approved the proposed  action.
      If any Lease  requires  that the  landlord's  consent  be given  under the
      applicable  circumstances,  then Buyer  shall be deemed ipso facto to have
      approved such action.  Any notice from Buyer rejecting the proposed action
      shall include a description of the reasons for Buyer's rejection. If Buyer
      rejects the proposed action,  Seller shall nevertheless retain full right,
      power and  authority to execute such  documents as are necessary to effect
      such action,  and Seller  shall  promptly  advise  Buyer of the same.  The
      foregoing  notwithstanding,  in the event Buyer has  rejected the proposed
      action but Seller nonetheless  proceeds to effect it, Buyer shall have the
      right, within five (5) business days after receipt of Seller's notice that
      Seller has taken such action,  to elect to terminate this Agreement by the
      delivery to Seller of a written notice of  termination,  in which case the
      Deposit shall be paid to Buyer and, thereafter,  the parties shall have no
      further rights or obligations  hereunder  other than any arising under any
      section  herein  which  expressly  provides  that  it  shall  survive  the
      termination of this Agreement. If Buyer fails to notify Seller within such
      time  period,  Buyer  shall be deemed to have  fully  waived any rights to
      terminate  this  Agreement  pursuant to this  Section  13.2.  Seller shall
      deliver  to  Buyer  a true  and  complete  copy of each  such  renewal  or
      extension  agreement,  modification,  or  amendment,  as the  case may be,
      promptly after the execution and delivery thereof. After the expiration of
      the Due Diligence Period,  Seller shall not, without Buyer's prior written
      consent,  which consent may be withheld in Buyer's sole discretion,  enter
      into any Lease  Modification.  Seller shall  furnish  Buyer with a written
      notice of the  proposed  Lease  Modification.  If Buyer fails to object in
      writing to such proposed Lease Modification within three (3) business days
      after  receipt of such notice,  Buyer shall be deemed to have rejected the
      proposed Lease  Modification.  After the Execution Date, Seller shall not,
      without Buyer's prior written consent,  in Buyer's sole discretion,  enter
      into any additional leases affecting the Property.

      13.3 LEASE  ENFORCEMENT.  Subject to the provisions of Section 13.2 above,
      prior to the  Closing  Date,  Seller  shall  have the  right,  but not the
      obligation,  to enforce the rights and remedies of the landlord  under any
      Pre-Execution  Lease,  by summary  proceedings  or  otherwise  (including,
      without limitation,  the right to remove any tenant),  and to apply all or
      any portion of any security  deposits  then held by Seller toward any loss
      or damage incurred by Seller by reason of any defaults by tenants, and the
      exercise of any such rights or remedies  shall not affect the  obligations
      of  Buyer  under  this  Agreement  in any  manner  or  entitle  Buyer to a
      reduction in, or credit or allowance  against,  the Purchase Price or give
      rise to any other claim on the part of Buyer.

                                   ARTICLE 14
                                  MISCELLANEOUS

      14.1  BUYER'S  ASSIGNMENT.  Buyer shall not assign this  Agreement  or its
      rights  hereunder to any  individual  or entity  without the prior written
      consent of Seller,  which consent Seller may grant or withhold in its sole
      discretion,  and any such  assignment  shall  be null and void ab  initio;
      provided, however, Buyer shall be permitted to assign its rights hereunder
      upon  notice to, but  without  the  consent of Seller,  to a wholly  owned
      subsidiary  of  Buyer.  If  Seller  consents  to  an  assignment  of  this
      Agreement, as a condition to Buyer's right to assign this Agreement, Buyer
      and the  assignee  shall  deliver to Seller a written  agreement in a form
      reasonably acceptable to Seller executed by Buyer and the assignee whereby
      Buyer's  obligations  under this  Agreement are assigned to and assumed by
      the assignee,  and the assignee agrees to be bound by all of the terms and
      conditions of this  Agreement as if the assignee had  originally  executed
      this Agreement ("ASSIGNMENT AGREEMENT").  In the Assignment Agreement, the
      assignee  shall also  acknowledge  receipt of all Due  Diligence and other
      information received or obtained by Buyer. An assignment of this Agreement
      shall not relieve Buyer of its obligations hereunder.

      14.2 DESIGNATION AGREEMENT.  Section 6045(e) of the United States Internal
      Revenue  Code  and  the   regulations   promulgated   thereunder   (herein
      collectively called the "REPORTING  REQUIREMENTS")  require an information
      return to be made to the United States  Internal  Revenue  Service,  and a
      statement to be furnished to Seller, in connection with the Transaction.

                                       13
<PAGE>

            (a)   Escrow Agent is hereby  designated as the  "REPORTING  PERSON"
                  (as   defined   in  the   Reporting   Requirements)   for  the
                  Transaction.  Escrow  Agent shall  perform all duties that are
                  required by the Reporting  Requirements to be performed by the
                  Reporting Person for the Transaction.

            (b)   Seller and Buyer shall  furnish to Escrow  Agent,  in a timely
                  manner,   any  information   requested  by  Escrow  Agent  and
                  necessary  for Escrow Agent to perform its duties as Reporting
                  Person for the Transaction.

      14.3  SURVIVAL/MERGER.  Except for the provisions of this Agreement  which
      are  explicitly  stated to survive the  Closing,  (a) none of the terms of
      this Agreement shall survive the Closing, and (b) the delivery of the Deed
      and any other  documents  and  instruments  by Seller  and the  acceptance
      thereof by Buyer shall effect a merger, and be deemed the full performance
      and  discharge of every  obligation  on the part of Buyer and Seller to be
      performed hereunder.

      14.4  INTEGRATION;  WAIVER.  This  Agreement,  together  with the Exhibits
      hereto,  embodies and  constitutes  the entire  understanding  between the
      parties  with  respect  to  the  Transaction  and  all  prior  agreements,
      understandings,  representations  and  statements,  oral or  written,  are
      merged into this  Agreement.  Neither  this  Agreement  nor any  provision
      hereof may be waived, modified,  amended,  discharged or terminated except
      by an instrument  signed by the party against whom the enforcement of such
      waiver, modification,  amendment,  discharge or termination is sought, and
      then only to the extent set forth in such instrument.  No waiver by either
      party  hereto of any  failure or refusal by the other party to comply with
      its  obligations  hereunder  shall  be  deemed a  waiver  of any  other or
      subsequent failure or refusal to so comply.

      14.5 GOVERNING LAW. This Agreement  shall be governed by, and construed in
      accordance with, the law of the State where the Property is located.

      14.6 CAPTIONS NOT BINDING;  EXHIBITS.  The captions in this  Agreement are
      inserted for  reference  only and in no way define,  describe or limit the
      scope or intent of this Agreement or of any of the provisions  hereof. All
      Exhibits  attached hereto shall be incorporated by reference as if set out
      herein in full.

      14.7 BINDING EFFECT.  This Agreement shall be binding upon and shall inure
      to the benefit of the parties hereto and their  respective  successors and
      permitted assigns.

      14.8  SEVERABILITY.  If any term or  provision  of this  Agreement  or the
      application thereof to any persons or circumstances  shall, to any extent,
      be  invalid or  unenforceable,  the  remainder  of this  Agreement  or the
      application  of such term or provision to persons or  circumstances  other
      than those as to which it is held  invalid or  unenforceable  shall not be
      affected  thereby,  and each term and provision of this Agreement shall be
      valid and enforced to the fullest extent permitted by law.

      14.9 NOTICES. Any notice,  request,  demand,  consent,  approval and other
      communications  under this  Agreement  shall be in  writing,  and shall be
      deemed  duly  given or made at the time and on the date when  received  by
      facsimile  (provided  that the sender of such  communication  shall send a
      copy of such  communication  to the  appropriate  parties  within  one (1)
      business day of such facsimile) or when personally delivered as shown on a
      receipt therefor (which shall include delivery by a nationally  recognized
      overnight  delivery service) or three (3) business days after being mailed
      by prepaid registered or certified mail, return receipt requested,  to the
      address for each party set forth below.  Any party,  by written  notice to
      the  other  in the  manner  herein  provided,  may  designate  an  address
      different from that set forth below.

      IF TO BUYER:

      Caplease, LP
      110 Maiden Lane, 36th Floor
      New York, New York  10005
      Attention:   Paul Hughes, Esq.
      Telephone#:  212-217-6300
      Telecopy #:  212-217-6301

      COPY TO:

      Wolf, Block, Schorr & Solis-Cohen LLP
      1650 Arch Street, 22nd Floor
      Philadelphia, Pennsylvania  19103
      Attention: Helene S. Jaron, Esq.
      Telephone #: 215-977-2038
      Telecopy #: 215-405-2938

      IF TO SELLER:

      Kansas EPA Laboratory, LLC
      4717 Grand Avenue, Suite 500
      Kansas City, MO 64112
      Attention: Mr. Richard D. Baier and Daniel K. Carr
      Telephone #: (816) 756-3535
      Telecopy #: (818) 968-5890

                                       14
<PAGE>

      COPY TO:

      Daniel T. Murphy, Esq.
      Shughart Thomson & Kilroy, PC
      Twelve Wyandotte Plaza
      120 West 12th Street
      Kansas City, MO 64105
      Telephone #: (816) 374-0550
      Telecopy #: (816) 374-0509

      IF TO TITLE COMPANY OR ESCROW AGENT:

      First American Title Insurance Company of New York
      633 Third Avenue
      New York, New York  10017
      Attention:  Bruce Clay

      14.10 COUNTERPARTS.  This Agreement may be executed in counterparts,  each
      of which shall be an original and all of which counterparts taken together
      shall constitute one and the same agreement.

      14.11 NO  RECORDATION.  Seller and Buyer each  agrees  that  neither  this
      Agreement nor any  memorandum or notice hereof shall be recorded and Buyer
      agrees (a) not to file any notice of pendency or other  instrument  (other
      than a judgment) against the Property or any portion thereof in connection
      herewith  and (b) to  indemnify  Seller  against all costs,  expenses  and
      damages,  including,  without limitation,  reasonable  attorneys' fees and
      disbursements, incurred by Seller by reason of the filing by Buyer of such
      notice of pendency or other instrument.

      14.12 ADDITIONAL AGREEMENTS;  FURTHER ASSURANCES. Subject to the terms and
      conditions  herein provided,  each of the parties hereto shall execute and
      deliver  such  documents  as the other party shall  reasonably  request in
      order to consummate and make effective the Transaction; provided, however,
      that the execution and delivery of such  documents by such party shall not
      result in any additional liability or cost to such party.

      14.13  CONSTRUCTION.  The  parties  acknowledge  that  each  party and its
      counsel have reviewed and revised this  Agreement and that the normal rule
      of  construction  to the effect  that any  ambiguities  are to be resolved
      against the drafting party shall not be employed in the  interpretation of
      this Agreement or any amendment hereof or Exhibit hereto.

      14.14 LEGAL COSTS.  The parties  hereto agree that they shall pay directly
      any and all legal  costs  which they have  incurred on their own behalf in
      the  preparation  of all  deeds and other  agreements  pertaining  to this
      transaction  and that such legal  costs  shall not be part of the  closing
      costs.  If either party is found in default of this Agreement and judgment
      is issued  against said party for its default,  then said party in default
      agrees  to pay any and all  costs  arising  as a result  of said  default,
      including reasonable attorneys' fees.

      14.15 BUSINESS DAY. As used herein, the term "BUSINESS DAY" shall mean any
      day other than a  Saturday,  Sunday,  or any  federal or state of Missouri
      holiday. If any period expires on a day which is not a business day or any
      event or condition is required by the terms of this  Agreement to occur or
      be  fulfilled  on a day which is not a business  day,  such  period  shall
      expire or such event or condition shall occur or be fulfilled, as the case
      may be, on the next succeeding business day.

      14.16 SELLER'S MAXIMUM AGGREGATE LIABILITY.  Notwithstanding any provision
      to the contrary  contained in this Agreement or any documents  executed by
      Seller pursuant hereto or in connection  herewith,  the maximum  aggregate
      liability of Seller, and the maximum aggregate amount which may be awarded
      to and collected by Buyer,  in connection  with the  Transaction and under
      this Agreement  (including,  without  limitation,  in connection  with the
      breach of any representations and warranties contained herein) and any and
      all documents executed pursuant hereto or in connection herewith for which
      a claim is  timely  made by Buyer  shall  not  exceed  Two  Hundred  Fifty
      Thousand  and  No/100  Dollars  ($250,000.00);   and  provided,  shall  be
      actionable by the Buyer only if Buyer's  aggregate  damages resulting from
      the breach are  reasonably  estimated to exceed an amount in excess of One
      Hundred  Thousand and No/100  ($100,000.00)  Dollars and provided,  Seller
      shall not be liable  for the  initial  One  Hundred  Thousand  and  No/100
      ($100,000.00)  Dollars in damages resulting from the breach.  Seller shall
      only have  liability  for the amount by which  Buyer's  aggregate  damages
      resulting  from  the  breach  exceed  One  Hundred   Thousand  and  No/100
      ($100,000.00), and in no manner shall Seller's maximum aggregate liability
      exceed Two Hundred and Fifty  Thousand and no/100  Dollars  ($250,000.00).
      The  provisions  of this  section  shall  survive the Closing  (and not be
      merged therein) or any earlier termination of this Agreement.

      14.17 1031  EXCHANGE.  Buyer may  acquire or Seller may sell the  Property
      through a tax-free  exchange  under  Section 1031 of the Internal  Revenue
      Code. In connection therewith, each party agrees to execute such documents
      as are reasonably  necessary or appropriate  and otherwise  cooperate with
      the other to effectuate  such  exchange;  provided the other party and its
      representatives shall have a reasonable opportunity to review all relevant
      documents prior to Closing. Seller hereby indemnifies and holds Buyer free
      and harmless  from any liability  (including,  but not limited to, the tax
      ramifications to the Seller of such tax-free  exchange)  arising by reason
      of  performing  the  acts  required  hereby  to  effectuate  the  Seller's
      exchange,  except insofar as any such  liabilities are attributable to the
      failure  of the Buyer to  perform  as  required  hereunder.  Buyer  hereby
      indemnifies  and holds the Seller  free and  harmless  from any  liability
      (including, but not limited to, the tax ramifications to the Buyer of such
      tax-free exchange) arising by reason of performing acts required hereby to
      effectuate the Buyer's  exchange,  except insofar as any such  liabilities
      are  attributable  to the  failure of the  Seller to  perform as  required
      hereunder.  No party shall be required to take title or  otherwise  assume
      any liability with respect to any property other than the Property.

                                       15
<PAGE>

      14.18 PRINCIPAL/AGENT DISCLOSURE.  Richard D. Baier and Daniel K. Carr are
      licensed  real  estate  brokers  and are  employees  of CB Richard  Ellis;
      provided,  however,  Mr.  Baier and Mr.  Carr are  acting  solely in their
      capacity as principals of Seller with respect to this  Transaction and are
      not  representing  Seller or Buyer as brokers.  Cathy Howard is a licensed
      real estate  broker,  an employee of CB Richard  Ellis and a principal  of
      Seller, and is representing the Seller with respect to this Transaction as
      a Participating Broker.

      14.19  WAIVER OF JURY TRIAL.  BUYER AND SELLER EACH HEREBY WAIVE ANY RIGHT
      TO A TRIAL BY JURY IN ANY  ACTION OR  PROCEEDING  TO ENFORCE OR DEFEND ANY
      RIGHTS  UNDER  THIS  AGREEMENT  OR ANY  OTHER  DOCUMENT  RELATING  TO THIS
      AGREEMENT  AND AGREE  THAT ANY SUCH  ACTION OR  PROCEEDING  SHALL BE TRIED
      BEFORE A COURT AND NOT BEFORE A JURY.


                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                             SIGNATURE PAGES FOLLOW

                                       16
<PAGE>

      IN WITNESS WHEREOF, each party hereto has caused this Agreement to be duly
executed on its behalf on the day and year first above written.

                                            SELLER

                                            KANSAS EPA LABORATORY, LLC


                                            By: /s/ Daniel Carr
                                               ---------------------------------
                                            Name:  Daniel Carr
                                            Title: Manager - Authorized Member
                                            Date:  07/18/2005


                                            BUYER

                                            CAPLEASE, LP, a Delaware limited
                                            partnership

                                            By: CLF OP General Partner, LLC,
                                                  a Delaware limited liability
                                                  company, its general partner

                                            By: Capital Lease Funding, Inc., a
                                                  Maryland corporation, its sole
                                                  member

                                            By: /s/ Robert Blanz
                                               ---------------------------------
                                            Name:  Robert Blanz
                                            Title: Senior Vice President
                                            Date:  07/18/2005

                                       17
<PAGE>

                            AGREEMENT OF ESCROW AGENT

An original  fully-executed  copy of this  Agreement,  together with the Initial
Earnest Money, have been received by the Escrow Agent this 21 day of July, 2005,
and by execution hereof,  the Escrow Agent hereby confirms its obligation as the
Escrow Agent hereunder.

                                            FIRST AMERICAN TITLE INSURANCE
                                                 COMPANY of NEW YORK

                                            By: /s/ Hilary A. Kruce
                                               ---------------------------------
                                            Name:  Hilary A. Kruce
                                            Title: Vice President/Counsel
                                            Date:  07/20/2005

                                       18
<PAGE>

                                 BROKER JOINDER

         The  undersigned  joins  in the  execution  of this  Agreement  for the
purpose of  representing  and  warranting  to Buyer and Seller that it: (i) is a
duly  licensed  real  estate  broker  in such  jurisdiction  in which it is duly
authorized to earn and receive a commission in connection  with the  Transaction
evidenced by this  Agreement,  (ii) has  contacted no other real estate  broker,
finder or other party in connection  with this  transaction  to whom fees may be
due or payable, and (iii) acknowledges and agrees to the terms and provisions of
Section 9.3.2 hereof.  The undersigned shall indemnify and hold Buyer and Seller
harmless from any and all loss, liens, claims,  judgments,  liabilities,  costs,
expenses  or damages  (including  reasonable  attorneys'  fees and court  costs)
resulting  by reason  of a breach of the  representations  and  warranties  made
herein or by reason of any claims of entitlement  to a commission,  fee or other
sum in connection with the  transaction  evidenced by this Agreement made by any
present  or  former  employee  of  the  undersigned.   Notwithstanding  anything
contained in this  Agreement  to the  contrary,  this  provision  shall  survive
Closing or any termination of this Agreement.


                                            CB RICHARD ELLIS, INC.


                                            By: /s/ Gary Carr
                                               ---------------------------------
                                            Name:  Gary Carr
                                            Title: Senior Vice President

                                            CB RICHARD ELLIS, INC.

                                            By: /s/ Russell Ingrum
                                               ---------------------------------
                                            Name:  Russell Ingrum
                                            Title: Senior Vice President