Document:

exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED

COMMERCE BANCSHARES, INC.

RESTRICTED STOCK PLAN

     This Restricted Stock Plan originally adopted by Commerce Bancshares, Inc.
on the 4th day of October, 1991 is restated with all amendments as of April 21,
2004.

	1.	 	DEFINITIONS.

	 	a.	 	“Company” shall mean Commerce Bancshares, Inc., a Missouri
corporation.
	 
	 	b.	 	“Common Stock” shall mean shares of the Company’s $5 par
value common stock.
	 
	 	c.	 	“Subsidiary” shall mean any corporation in which the Company
owns or hereafter owns, directly or indirectly, stock possessing not
less than 50% of the total combined voting power of all classes of
stock in such corporation.
	 
	 	d.	 	“Restricted Stock Awards” or “Awards” shall mean Awards of
Common Stock granted pursuant to the Plan.
	 
	 	e.	 	“Plan” means the Commerce Bancshares, Inc. Restricted Stock
Plan as described herein.
	 
	 	f.	 	“Committee” shall mean the Compensation and Human
Resources Committee of the Board of Directors of the Company,
which shall consist solely of two or more directors who are
“non-employee directors” under Rule 16b-3(b)(3) promulgated
under the Securities Exchange Act of 1934, as amended, or any
successor provision thereto, and “outside directors” within
the meaning of Treasury Regulation 1.162-27(e)(3)(i).
	 
	 	g.	 	“Participant” means individual to whom an Award is granted.
	 
	 	h.	 	“Restriction Period” means the duration of time over which a
Restricted Stock Award is to vest as determined by the Committee.
	 
	 	i.	 	“Qualifying Retirement” shall mean retirement of a
Participant who has (i) attained the age of 60 and (ii) agreed to
the terms of the covenant not to compete set forth in the Agreement.
	 
	 	j.	 	“Agreement” shall mean the Commerce Bancshares, Inc.
Restricted Stock Award Agreement.
	 
	 	k.	 	“Performance Goals” shall mean revenue, earnings, earnings
per share, pre-tax earnings and net profits, stock price, market
share, costs, return on equity, efficiency ratio (non-interest
expense, divided by total revenue), asset

 

 

management, asset quality, asset growth and budget achievement.
Performance Goals need not be the same with respect to all Covered
Employees and may be established separately for the Company as a
whole or for its various groups, divisions, subsidiaries and
affiliates and may be established as a comparison to peers.

	 	l.	 	“Covered Employees” shall mean individuals who are
covered employees within the meaning of Section 162(m)(3) of
the Code.

	2.	 	PURPOSE.

     The purpose of the Plan is to promote the interests of the Company and its
shareholders by providing a means through the grant of Awards hereunder for the
Company to retain and attract personnel who contribute to the growth and
development of the Company and its Subsidiaries by providing additional
incentive to such personnel by offering a greater interest in the continued
success of the Company through increased stock ownership.

	3.	 	STOCK SUBJECT TO PLAN.

     Subject to the provisions of Section 7 hereof, the total number of shares
of Common Stock subject to Restricted Stock Awards under the Plan shall not
exceed 616,496. Shares subject to Awards under the Plan may be either
authorized and unissued shares or issued shares which are reacquired by the
Company and held in its treasury. Shares which have been awarded but which
have been forfeited pursuant to Section 6(d) hereof shall be added to the
shares otherwise available for Awards under the Plan. The maximum number of
shares of Common Stock that may be granted under Restricted Stock Awards in any
one calendar year to any Covered Employee is 50,000.

	4.	 	ADMINISTRATION.

     The Plan shall be administered by the Committee which shall have full
authority in its sole discretion to determine the employees of the Company and
its Subsidiaries to whom Awards shall be granted, the number of shares subject
to each such Award, the time or times at which restrictions relative to such
Awards shall otherwise lapse or expire and the time or times when Awards may be
granted. All questions of interpretation and application of the Plan and of
any Awards granted pursuant hereto shall be determined by the Committee. No
member of the Committee shall be liable for any action, determination or
interpretation under any provision of the Plan or otherwise if done in good
faith and any decision made or action taken by the Committee arising out of or
in connection with the construction, administration, interpretation and effect
of the Plan shall be within the absolute discretion of the Committee and shall
be conclusive and binding upon all persons.

	5.	 	ELIGIBILITY.

     The Committee may select from among the officers, executives and
management personnel of the Company or its Subsidiaries those individuals to
whom an Award shall be granted, giving consideration to the duties of the
respective employees, their contributions to the Company and its Subsidiaries,
and such other factors as the Committee shall deem relevant to

2

 

accomplish the purpose of this Plan. No member of the Committee and no
member of the Board of Directors of the Company, unless such director is also
an officer or employee of the Company or any Subsidiary, shall be eligible to
receive any Restricted Stock Award under this Plan.

	6.	 	GRANT OF RESTRICTED STOCK AWARDS.

     Each Restricted Stock Award shall be evidenced by one or more stock
certificates registered in the name of the Participant and an agreement to be
entered into by the Participant and the Company, the terms and conditions of
which may include but are not limited to the following:

	 	a.	 	NUMBER OF SHARES: The agreement shall state the total number
of shares of Common Stock to which it pertains.
	 
	 	b.	 	RESTRICTION PERIOD: The Restriction Period for any Award
granted under the Plan shall be determined by the Committee and
shall have a duration of not more than ten years from the date the
Award is granted. An Award is considered to be vested when the
restriction period lapses. Upon vesting, the certificate
representing such Award shall be delivered to the Participant
together with stock power. Restricted Stock Awards may have
different Restriction Periods and an Award may provide varying
Restriction Periods so as to permit the vesting of an Award in
installments in the discretion of the Committee.
	 
	 	c.	 	TRANSFER RESTRICTIONS: A Participant shall be required to
deposit the certificate or certificates for all shares of Common
Stock received pursuant to an Award together with stock powers or
other instruments of transfer appropriately endorsed in blank with
the Secretary of the Company. Such shares shall not be sold,
exchanged, assigned, transferred, discounted, pledged or otherwise
disposed of during the Restriction Period. The shares shall be
released from the restrictions described herein, in whole or in
installments, at such date or dates as may be determined by the
Committee at the time of the Award, and a Participant’s right to
have an Award released from the transfer restrictions shall accrue
only if the Participant shall have remained in the continuous
employment of the Company since the date of the Award.
	 
	 	d.	 	TERMINATION OF EMPLOYMENT: In the event that a Participant’s
employment terminates by reason of death or the disability (as
determined by the Participant establishing his eligibility to
receive Social Security disability benefits) of the Participant, the
Restriction Period shall be deemed to lapse as of the date of death
or disability on that part of the Award which equals the portion of
the Restricted Period, measured in full and partial months,
completed before the date of death or disability, and the shares of
Common Stock constituting such portion of the Award shall be
distributed pursuant to subsection (h) hereof in the event of the
Participant’s death or to the Participant in the event of
disability. The Committee shall in its sole discretion determine
any effect of approved leaves of absence and all other matters
relating to “continuous employment,” and any such determination
shall be final and conclusive. Employment by the Company shall

3

 

be deemed to include employment by and to continue during any
period in which a Participant is in the employment of a Subsidiary.

In the event that a Participant’s termination of employment prior
to the end of the Restriction Period constitutes a Qualifying
Retirement, and if the Participant complies with the terms of the
covenant not to compete set forth in the Agreement, then, on the
date on which the Restriction Period ends, Participant shall become
fully vested in the part of an Award which equals the portion of
the Restriction Period (measured in full and partial months)
completed before the date of Qualifying Retirement and shares of
Common Stock constituting such portion of the Award shall be
delivered to Participant as soon as reasonably practicable
thereafter. In such case, the Participant shall forfeit the
remainder of the Award at the time of the Qualifying Retirement.
The sale or transfer restriction shall continue to apply until the
end of the Restriction Period and the portion of the Award that
will vest upon the date the Restriction Period ends shall be
forfeited if the Participant violates the covenant not to compete.
If the Participant dies or becomes disabled (as determined by the
Participant establishing his eligibility to receive Social Security
disability benefits) after the date of his Qualifying Retirement,
but prior to end of the Restriction Period, and if Participant has
not violated the terms of the covenant not to compete as set forth
in the Agreement, Participant will immediately vest in the portion
that Participant would otherwise receive under this paragraph and
shares of Common Stock constituting such portion shall be
distributed pursuant to subsection (h) hereof in the event of
Participant’s death or to Participant in the event of disability.

	 	e.	 	ASSIGNABILITY: Except as provided in subsection (h) of this
Section, no benefit payable under or interest in the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge and any such attempted
action shall be void and no such benefit or interest shall be in any
manner liable for or subject to debts, contracts, liabilities,
engagements, or torts of any Participant or beneficiary.
	 
	 	f.	 	RIGHTS AS A STOCKHOLDER: The Participant shall have the
right to receive cash dividends during the Restriction Period, to
vote Common Stock subject to an Award and to enjoy all other
stockholder rights except that (i) the Participant shall not be
entitled to delivery of the stock certificate until the Restriction
Period shall have lapsed and (ii) the Participant may not sell,
transfer, pledge, exchange, hypothecate or otherwise dispose of the
Stock during the Restriction Period.
	 
	 	g.	 	CHANGE IN CONTROL: Notwithstanding any other provision of
the Plan to the contrary, in the event of a Change in Control the
restrictions applicable to any Restricted Stock Award shall lapse,
and such Restricted Stock Award shall become free of all
restrictions and become fully vested and transferable.
	 
	 	 	 	For purposes of the Plan, a “Change in Control” shall mean the
happening of any of the following events:

4

 

	 	(i)	 	any Person is or becomes the “beneficial owner”
(within the meaning of Rule 13d-3 promulgated under Section 13
of the Securities Exchange Act of 1934 (the “Exchange Act”)),
directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person
any securities acquired directly from the Company or its
affiliates other than in connection with the acquisition by
the Company or its affiliates of a business) representing 20%
or more of either the then outstanding shares of common stock
of the Company or the combined voting power of the Company’s
then outstanding securities; or
	 
	 	(ii)	 	the following individuals cease for any reason to
constitute a majority of the number of directors then serving:
individuals who, on August 2, 1996, constitute the Board and
any new director (other than a director whose initial
assumption of office is in connection with an actual or
threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of
the Company) whose appointment or election by the Board or
nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors on
August 2, 1996 or whose appointment, election or nomination
for election was previously so approved; or
	 
	 	(iii)	 	there is consummated a merger or consolidation
of the Company (or any direct or indirect subsidiary of the
Company) with any other corporation, other than (i) a merger
or consolidation which would result in the voting securities
of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of
the surviving entity or any parent thereof), in combination
with the ownership of any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, at
least 80% of the combined voting power of the voting
securities of the Company or such surviving entity or any
parent thereof outstanding immediately after such merger or
consolidation, or (ii) a merger or consolidation effected to
implement a recapitalization of the Company (or similar
transaction) in which no Person is or becomes the beneficial
owner, directly or indirectly, of securities of the Company
(not including in the securities beneficially owned by such
Person any securities acquired directly from the Company or
its subsidiaries other than in connection with the acquisition
by the Company or its subsidiaries of a business) representing
20% or more of either the then outstanding shares of common
stock of the Company or the combined voting power of the
Company’s then outstanding securities; or
	 
	 	(iv)	 	the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company or there is
consummated a sale or disposition by the Company of all or
substantially all of the Company’s assets, other than a sale
or disposition by the Company of all or

5

 

	 	 	 	substantially all of the Company’s assets to an entity, at
least 80% of the combined voting power of the voting
securities of which are owned by Persons in substantially the
same proportions as their ownership of the Company
immediately prior to such sale.

For purposes of the above definition of Change in Control, “Person”
shall have the meaning set forth in Section 3(a)(9) of the Exchange
Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of
its subsidiaries, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of
its subsidiaries, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their
ownership of stock of the Company.

	 	h.	 	DESIGNATION OF BENEFICIARY: Each Participant who shall be
granted a Restricted Stock Award under the Plan may designate a
beneficiary or beneficiaries and may change such designation from
time to time by filing a written designation of beneficiary with the
Secretary of the Company, provided that no such designation shall be
effective unless received prior to the death of such Participant.
In the absence of such designation or if the beneficiary or
beneficiaries so designated shall not survive the Participant, the
certificate or certificates evidencing the Award shall be delivered
over to the estate of the Participant.
	 
	 	i.	 	OTHER PROVISIONS: The agreements authorized under this Plan
may contain such other provisions as the Committee shall deem
advisable.
	 
	 	j.	 	With respect to Covered Employees, individual
Restricted Stock Awards may qualify as performance-based
compensation. In so qualifying awards, the Committee, in its
sole discretion, may set restrictions on the grant of the
Award that are based upon the achievement of Performance
Goals. With respect to each Restricted Stock Award to a
Covered Employee which the Committee determines should
qualify as performance-based compensation, the following
requirements shall be met:

(i) Each Performance Goal shall be specifically
defined in advance by the Committee and may include or
exclude specified items of an unusual, non-recurring
or extraordinary nature.

(ii) Each Performance Goal must be sufficiently
objective that a third party having knowledge of the
relevant facts could determine whether the Performance
Goal has been met.

(iii) Different Awards may be set by the Committee
based on achievement of certain Performance Goals or
specified levels of

6

 

achieving the Performance Goals. However, no
Restricted Stock Award shall be paid to any Covered
Employee if the applicable minimum Performance Goal(s)
are not achieved.

(iv) Performance Goals shall be set by the Committee
no later than the earlier of (i) 90 days after the
commencement of the period of service to which the
Performance Goal relates, or (ii) the end of the
period that constitutes the first twenty-five percent
(25%) of the period of service to which the
Performance Goal relates; provided that the outcome is
substantially uncertain at the time the Committee
actually establishes the Performance Goal.

(v) The Committee shall have no discretion to increase
the amount of compensation that otherwise would be due
upon attainment of a Performance Goal, although the
Committee may have discretion to deny an award or to
adjust downward the compensation payable pursuant to a
Restricted Stock Award, as, in the Committee’s sole
judgment, is prudent based upon the Committee’s
assessment of the Covered Employee’s performance and
the Company’s performance during the relevant
measuring period.

(vi) Notwithstanding the foregoing, no award shall be
paid to a Covered Employee before the Committee
certifies in writing that such Covered Employee met
the requirements of the applicable Performance Goal.

	7.	 	CHANGES IN CAPITAL STRUCTURE.

     The aggregate number of shares of Common Stock on which Awards may be
granted to persons participating under the Plan and the number of shares
thereof covered by each outstanding Award shall be proportionately adjusted for
any increase or decrease in the number of issued shares of Common Stock
resulting from a subdivision or consolidation of shares or other capital
adjustment or the payment of a stock dividend or other increase or decrease in
such shares effected without receipt of consideration by the Company; provided,
however, that any fractional shares resulting from such adjustment shall be
eliminated and any additional certificates evidencing shares of Common Stock to
be issued pursuant to a stock dividend or other increase in such shares shall
be delivered to and held by the Secretary of the Company subject to the terms
of the agreement entered into by the Participant and the Company.

	8.	 	RIGHT OF COMPANY TO TERMINATE EMPLOYMENT.

     Neither the establishment of the Plan nor the granting of any Award
hereunder shall confer upon the recipient thereof any right to be continued in
the employ of the Company or a Subsidiary, and the Company and its Subsidiaries
expressly reserve the right to discharge any Participant whenever the interest
of the Company or its Subsidiaries may so require without

7

 

liability to the Company or its Subsidiaries, the Board of Directors of
the Company or its Subsidiaries, or the Committee.

	9.	 	TAXES.

	 	a.	 	The person entitled to receive shares of Common Stock
pursuant to the Award will be given notice as far in advance as
practicable to permit cash payment for applicable withholding taxes
to be made to the Company. The Company may defer making delivery of
the certificate representing the shares until indemnified to its
satisfaction with respect to any such withholding tax.
	 
	 	b.	 	Notwithstanding the foregoing, when an Award shall have
vested and a Participant is required to pay to the Company an amount
required to be withheld under applicable federal, state, local and
payroll taxes, the Participant may satisfy this obligation in whole
or in part by electing (the “Election”) to have the Company withhold
shares of Common Stock having a value equal to the amount required
to be withheld. The value of the shares to be withheld shall be
based on the last sale price of the Common Stock as reported by the
Automated Quotation System of the National Association of Securities
Dealers on the date that the amount of tax to be withheld shall be
determined (“Tax Date”). Each Election must be made on or prior to
the Tax Date. The Committee may disapprove any Election or may
suspend or terminate the right to make Elections. An Election is
irrevocable.

	10.	 	AMENDMENT OF THE PLAN.

     The Board of Directors of the Company may, by resolution, amend or revise
the Plan except that, without shareholder approval, no such amendment shall
increase the maximum aggregate number of shares which may be granted under the
Plan except as provided in Section 7 or changes the class of eligible
employees, and no such amendment may without the Participant’s consent amend,
suspend or terminate rights or obligations pursuant to outstanding Restricted
Stock Awards.

	11.	 	EFFECTIVE DATE.

     The Plan shall be effective as of October 4, 1991.

8<PAGE>
                                                                   EXHIBIT 10.01

                         AGREEMENT FOR PURCHASE AND SALE
                    OF REAL PROPERTY AND ESCROW INSTRUCTIONS

         THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW
INSTRUCTIONS ("Agreement") is made and entered into as of this ______ day of
February, 2004, by and between WESTERN PLACE SKYRISE, LTD, a Texas limited
partnership ("Seller") and TRIPLE NET PROPERTIES, LLC, a Virginia limited
liability company ("Buyer"), with reference to the following facts:

         A.       Seller owns certain real property located in Tarrant County,
                  TEXAS and more specifically described in Exhibit A attached
                  hereto (the "Land"), commonly known as Western Place I & II,
                  located at 6000 & 6100 Western Place, Ft. Worth, Texas 76107,
                  Dallas, Texas and such other assets, as the same are herein
                  described.

         B.       Seller desires to sell to Buyer and Buyer desires to purchase
                  from Seller the Land and the associated assets.

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

1.       Purchase and Sale.

         1.1.     The purchase and sale includes, and at Close of Escrow
                  (hereinafter defined) Seller shall sell, transfer, grant and
                  assign to Buyer, Seller's entire right and interest in and to
                  all of the following (hereinafter sometimes collectively, the
                  "Property"):

                  1.1.1.   The Land, together with all structures, buildings,
                           improvements, machinery, fixtures, and equipment
                           affixed or attached to the Land and all easements,
                           development rights, rights of way, and other rights
                           appurtenant to the Land (all of the foregoing being
                           collectively referred to herein as the "Real
                           Property");

                  1.1.2.   All leases (the "Leases"), including associated
                           amendments, with all persons ("Tenants") leasing the
                           Real Property or any part thereof or hereafter
                           entered into in accordance with the terms hereof
                           prior to Close of Escrow, together with all security
                           deposits, other deposits held in connection with the
                           Leases, Lease guarantees and other similar credit
                           enhancements providing additional security for such
                           Leases;

                  1.1.3.   All tangible and intangible personal property owned
                           by Seller located on or used in connection with the
                           Real Property, including, specifically,

                                      A-1
<PAGE>

                           without limitation, equipment, furniture, tools and
                           supplies, any website maintained by the Seller and
                           all related intangibles including Seller's interest,
                           if any, in the name "Western Place I & II " (the
                           "Personal Property");

                  1.1.4.   All service contracts, agreements, warranties and
                           guaranties relating to the operation, use or
                           maintenance of the Property (the "Contracts"); and

                  1.1.5.   To the extent transferable, all building permits,
                           certificates of occupancy and other certificates,
                           permits, licenses and approvals relating to the
                           Property (the "Permits").

2.       Purchase Price.

         The total Purchase Price of the Property shall be Thirty Five Million
         and No/100 Dollars ($35,000,000.00) ("PURCHASE PRICE"), and payable as
         follows:

         2.1.     Deposit/Further Payments.

                  2.1.1.   Within two (2) business days following the date a
                           fully executed original of this Agreement is
                           delivered to the Escrow Holder (hereinafter defined)
                           (such delivery date hereinafter the "EFFECTIVE
                           DATE"), Buyer shall deposit into Escrow (hereinafter
                           defined) the amount of Two Hundred Fifty Thousand and
                           No/100 Dollars ($250,000.00) (THE "DEPOSIT"), in the
                           form of a wire transfer payable to Partners Title
                           Company, 712 Main Street, Suite 2000E, Houston, Texas
                           77002, Attention: Karen Highfield, Telephone
                           713-229-8484, Facsimile: 713-238-9177 ("ESCROW
                           MOLDER"). Escrow Holder shall place the Deposit into
                           an interest bearing money market account at a bank or
                           other financial institution reasonably satisfactory
                           to Buyer, and interest thereon shall be credited to
                           Buyer's account and shall be deemed to be part of the
                           Deposit.

                  2.1.2.   Intentionally deleted.

                  2.1.3.   On or before Close of Escrow, Buyer shall deposit
                           with the Escrow Holder to be held in Escrow the
                           balance of the Purchase Price, in immediately
                           available funds by wire transfer made payable to
                           Escrow Holder.

                  2.1.4.   In the event that this Agreement is terminated by
                           Buyer in accordance with any term or provision of
                           this Agreement permitting Buyer to terminate and
                           receive the Deposit, the Deposit shall be immediately
                           and automatically paid over to Buyer without the need
                           for any further action by either party hereto.

                                       2
<PAGE>

3.       Title to Property.

         3.1.     Title Insurance.

         Seller will, at Seller's sole expense, cause Partners Title Company
         (THE "TITLE COMPANY") to issue a TLTA Form T-1 Owner's Policy of Title
         Insurance (the "TITLE POLICY") for and on behalf of Buyer in the total
         amount of the Purchase Price and obtainable at statutory rates insuring
         indefeasible title in and to the Real Property. The Title Policy shall
         be free and clear of exceptions except as follows:

                  3.1.1.   Real property taxes and assessments, which are a lien
                           not yet due;

                  3.1.2.   The Permitted Exceptions (hereinafter defined)
                           included in such policy and either approved or
                           waived, as the case may be by Buyer as herein
                           described.

         3.2.     Procedure for Approval of Title.

         Seller shall, no later than ten (10) days following the Effective Date,
         provide to Buyer a current title insurance commitment (the "TITLE
         COMMITMENT") for the Real Property, including legible copies of all
         items identified as exceptions therein (the "Title Documents"). Buyer
         shall have until fifteen days prior to the expiration of the Inspection
         Period to review and approve, in writing, the condition of the title to
         the Real Property ("TITLE REVIEW PERIOD"). If the Title Documents or
         the Survey reflect or disclose any defect, exception or other matter
         affecting the Real Property ("Title Defects") that is unacceptable to
         Buyer, then Buyer shall provide Seller with written notice of Buyer's
         objections no later than the conclusion of the Title Review Period;
         provided, however, if Buyer shall fail to notify Seller in writing
         within the Title Review Period of any specific objections to the state
         of title to the Real Property, then Buyer shall be deemed to have
         waived objection to all exceptions to title or other conditions or
         matters which are shown on the Survey or described in the Title
         Documents except those matters contained in Schedule C of the Title
         Commitment. Seller may, at its sole option, elect, by written notice
         given to Buyer within three (3) days following the conclusion of the
         Title Review Period ("SELLER'S NOTICE PERIOD"), to cure or remove the
         objections made or deemed to have been made by Buyer; provided,
         however, Seller shall in all events have the obligation to (i) act in
         good faith in making such election and curing any Title Defects that
         Seller elects to cure, (ii) specifically remove any monetary
         encumbrances affecting the Real Property if such exceptions may be
         removed by payment of a liquidated sum and such sum does not in the
         aggregate exceed the Purchase Price, and (iii) remove any Title Defect
         that attaches to the Real Property subsequent to the conclusion of the
         Title Review Period if such Title Defect may be removed by payment of a
         liquidated sum and such sum does not in the aggregate exceed the
         Purchase Price. The failure of Seller to deliver written notice
         electing to cure any or all such objected to exceptions during the
         Seller's Notice Period shall be deemed an election by

                                       3
<PAGE>

         Seller not to cure such exceptions. Should Seller elect to attempt to
         cure or remove any objection, Seller shall have fifteen (15) days from
         the conclusion of the Title Review Period ("CURE PERIOD") in which to
         accomplish the cure. In the event Seller elects (or is deemed to have
         elected) not to cure or remove any objection, then Buyer shall be
         entitled, as Buyer's sole and exclusive remedies, either to (i)
         terminate this Agreement and obtain a refund of the Deposit or (ii)
         waive any objections that Seller has not elected to cure and close this
         transaction as otherwise contemplated herein. The failure of Buyer to
         provide written notice to Seller within ten (10) days following the
         expiration of the Seller's Notice Period waiving any objections Seller
         has not elected to cure shall be deemed an election by Buyer to close
         this Agreement. Any exceptions to title accepted or waived by Buyer
         pursuant to the terms of this paragraph shall be deemed "Permitted
         Exceptions."

4.       Due Diligence Items.

         4.1.     Seller shall, within five (5) business days following full
                  execution of this Agreement (THE "DELIVERY DATE"), deliver to
                  Buyer each of the following to the extent they are in Seller's
                  possession or control (collectively, the "Due Diligence
                  Items"):

                  4.1.1.   Seller's existing survey of the Real Property (the
                           "SURVEY") which may be updated at the expense of
                           Buyer;

                  4.1.2.   Copies of all Leases presently in effect with respect
                           to the Real Property, together with any amendments or
                           modifications thereof;

                  4.1.3.   A "rent roll" with respect to the Real Property for
                           the calendar month immediately preceding the
                           Effective Date, showing with respect to each Tenant
                           of the Real Property: (1) the name of the Tenant, (2)
                           the number of rentable square feet in Tenant's
                           premises as set forth in Tenant's Lease, (3) the
                           current monthly base rental payable by such Tenant,
                           (4) the term of the Lease, (5) any available options
                           for the Tenant under the Lease; and (6) the amount of
                           any security deposit;

                  4.1.4.   A "rent roll" current as of December, 2003 and 2004
                           year to date;

                  4.1.5.   An aging report showing, with respect to each Tenant
                           of the Real Property, the date through which such
                           Tenant has paid rent and a Tenant by Tenant monthly
                           aging report for the period of Seller's ownership;

                  4.1.6.   A list of all contracts, including service contracts,
                           warranties, management, maintenance, leasing
                           commission or other agreements affecting the Real
                           Property, if any, together with copies of the same;

                  4.1.7.   All site plans, leasing plans, as-built plans,
                           drawings, environmental, mechanical, electrical,
                           structural, soils and similar reports and/or audits

                                       4
<PAGE>

                           and plans and specifications relative to the Real
                           Property in the possession of Seller or under the
                           control of Seller, if any;

                  4.1.8.   True and correct copies of the real estate and
                           personal property tax statements covering the
                           Property or any part thereof for each of the two (2)
                           years prior to the current year and, if available,
                           for the current year;

                  4.1.9.   A schedule of all current or pending litigation with
                           respect to the Real Property or any part thereof, if
                           any, or otherwise with respect to Seller that might
                           have a material adverse effect on Seller's ability to
                           perform hereunder, together with a brief description
                           of each such proceeding;

                  4.1.10.  Operating statements for the Real Property for the
                           Seller's period of ownership and the current year to
                           date;

                  4.1.11.  Copies of Tenant files and records relating to the
                           ownership and operation of the Real Property
                           (provided, however, such files and records will be
                           made available for inspection by Buyer during
                           ordinary business hours at Seller's management
                           office);

                  4.1.12.  An inventory of all personal property located on the
                           Real Property which is used in the maintenance of the
                           Real Property or stored for future use with the Real
                           Property;

                  4.1.13.  Copies of utility bills for the Real Property for
                           Seller's period of ownership; and

                  4.1.14.  Existing Environmental Site Assessment for the Real
                           Property.

         4.2.     Estoppel Certificates.

         Seller shall obtain and deliver to Buyer, no later than ten (10) days
         prior to Close of Escrow, estoppel certificates from (a) EnRisk,
         CSC-ML, THR Foundation, BAE Information, THR- ML, Attorney General,
         Community Hospice, THS Business Opera, Lockheed, Benefit Port Taylor
         Olson, Etc, US GSA ATF, THS Business Opera, Mitchell Energy, Tarrant
         Workforce, LIFO Systems and Gargen Cafe (collectively, the "Major
         Tenants") and (b) seventy five percent (75%) of all remaining Tenants
         of the Real Property (measured by square footage occupied) (the
         "Required Percentage Estoppels"), in all cases in the form of Exhibit D
         attached hereto and made a part hereof. In the event Seller is unable
         to obtain the Required Percentage Estoppels despite diligent efforts to
         do so, Seller may but shall not be obligated to deliver to Buyer an
         estoppel certificate executed by Seller in the form of Exhibit D
         covering sufficient estoppels that, together with those obtained, equal
         the Required Percentage Estoppels; provided, however, Seller shall
         thereafter continue to use diligent efforts to obtain an estoppel
         certificate executed by any such Tenant. Whether executed by the Tenant
         or by Seller, the matters certified in the estoppel certificates shall
         be subject to Buyer's reasonable

                                       5
<PAGE>

         approval Buyer shall notify Seller within three (3) business days
         following receipt of a copy of any executed estoppel certificate of
         Buyer's approval or disapproval and the basis of such disapproval, if
         disapproved. If (a) Buyer reasonably disapproves of any estoppel
         certificate, and Seller is unable to deliver a reasonably acceptable
         estoppel certificate prior to the Close of Escrow, and, without such
         estoppel certificate Seller will have failed to deliver the Required
         Percentage Estoppels or (b) Seller is unable to deliver acceptable
         forms of the Major Estoppels, this Agreement shall automatically
         terminate, Buyer shall be entitled to a refund of the Deposit without
         any further action required by any party, and neither party shall have
         any further obligation to the other. In addition to the foregoing,
         Seller shall deliver to each tenant a subordination, attornment and
         non-disturbance agreement required by Buyer's lender on the form
         attached as Exhibit C. Seller will cooperate and assist Buyer in
         obtaining subordination agreements required by Buyer's lender that are
         prepared by Buyer or Buyer's lender.

5.       Inspections.

         5.1.     Procedure; Indemnity.

         Buyer, at its sole expense, shall have the right to conduct
         feasibility, environmental, engineering and physical studies of the
         Real Property at any time from and after Effective Date and for a
         period of thirty (30) days thereafter (THE "DUE DILIGENCE PERIOD").
         Buyer and its duly authorized agents or representatives shall be
         permitted to enter upon the Real Property at all reasonable times
         during the Due Diligence Period in order to conduct tenant interviews,
         engineering studies, soil tests and any other inspections and/or tests
         that Buyer may deem necessary or advisable (collectively, the
         "Inspections"). Buyer agrees to promptly discharge any liens that may
         be imposed against the Real Property as a result of Buyer's Inspections
         and to defend, indemnify and hold Seller harmless from all claims,
         suits, losses, costs, expenses (including without limitation court
         costs and attorneys' fees), liabilities, judgments and damages incurred
         by Seller as a result of any Inspections performed by Buyer. The
         provisions of the foregoing indemnity shall survive termination of this
         Agreement or the Close of Escrow, as applicable. Notwithstanding the
         foregoing, Buyer may not conduct any invasive testing on or in the
         Property without the prior written consent of Seller, which consent
         shall not be unreasonably withheld or delayed. Copies of all inspection
         reports or test results conducted or prepared by any third party
         contractors or inspectors shall be furnished to Seller.

         5.2.     Approval.

                  5.2.1.   Buyer shall have until the conclusion of the Due
                           Diligence Period (as the same may be extended in
                           accordance with the terms of Paragraph 5.1 above) to
                           approve or disapprove of the Inspections and the Due
                           Diligence Items enumerated in Paragraph 4. If Buyer
                           shall fail to deliver a written notice to Seller and
                           Escrow Holder within the Due Diligence Period

                                       6
<PAGE>

                           approving the condition of the Real Property, this
                           Agreement shall thereupon be automatically
                           terminated, Buyer shall not be entitled to purchase
                           the Real Property, Seller shall not be obligated to
                           sell the Real Property to Buyer and the parties shall
                           be relieved of any further obligation to each other
                           with respect to the Real Property except for any
                           obligations that expressly survive termination. Upon
                           termination, Escrow Holder shall, without any further
                           action required from any party, return all documents
                           and funds, including the Deposit, to the parties who
                           deposited same and no further duties shall be
                           required of Escrow Holder.

                  5.2.2.   Notwithstanding anything to the contrary contained
                           herein, Buyer hereby agrees that in the event this
                           Agreement is terminated for any reason, then Buyer
                           shall promptly and at its sole expense return to
                           Seller all Due Diligence Items which have been
                           delivered by Seller to Buyer in connection with
                           Buyer's inspection of the Real Property.

6.       Escrow.

         6.1.     Opening.

         Purchase and sale of the Property shall be consummated through an
         escrow ("Escrow") to be opened with Escrow Holder within two (2)
         business days after the execution of this Agreement by Seller and
         Buyer. This Agreement shall be considered as the Escrow instructions
         between the parties, with such further consistent instructions as
         Escrow Holder shall require in order to clarify its duties and
         responsibilities. If Escrow Holder shall require further Escrow
         instructions, Escrow Holder may prepare such instructions on its usual
         form. Such further instructions shall, so long as not inconsistent with
         the terms of this Agreement, be promptly signed by Buyer and Seller and
         returned to Escrow Holder within three (3) business days of receipt
         thereof. In the event of any conflict between the terms and conditions
         of this Agreement and any further Escrow instructions, the terms and
         conditions of this Agreement shall control.

         6.2.     Close of Escrow.

         Escrow shall close ("CLOSE OF ESCROW") on the later to occur of thirty
         (30) days after the expiration of the Due Diligence Period or April
         1, 2004.

         6.3.     Buyer Required to Deliver.

         Buyer shall deliver to Escrow the following:

                  6.3.1.   In accordance with Paragraph 2, the Deposit;

                  6.3.2.   On or before Close of Escrow, the balance of the
                           Purchase Price; provided, however that Buyer shall
                           not be required to deposit the balance of the
                           Purchase Price into Escrow until Buyer has been
                           notified by Escrow

                                       7
<PAGE>

                           Holder that (i) Seller has delivered to Escrow each
                           of the documents and instruments to be delivered by
                           Seller in connection with Buyer's purchase of the
                           Property, and (ii) Title Company has committed to
                           issue and deliver the Title Policy to Buyer.

                  6.3.3.   On or before Close of Escrow, such other documents as
                           Escrow Holder may require from Buyer in order to
                           issue the Title Policy; and

                  6.3.4.   A counterpart original of an Assignment and
                           Assumption Agreement in the form attached hereto as
                           Exhibit B (the "Assignment Agreement"), duly executed
                           by Buyer assigning all of Seller's right, title and
                           interest in and to the Leases, Contracts and Permits
                           from and after the Close of Escrow.

         6.4.     Seller Required to Deliver.

         On or before Close of Escrow, Seller shall deliver to Escrow or Buyer,
         as applicable, the following:

                  6.4.1.   A duly executed and acknowledged Special Warranty
                           Deed (warranting title by, through and under Seller,
                           but not otherwise), conveying fee title to the Real
                           Property in favor of Buyer subject only to the
                           Permitted Exceptions and containing the language on
                           Exhibit E attached hereto and made a part hereof;

                  6.4.2.   A completed Certificate of Non-Foreign Status, duly
                           executed by Seller under penalty of perjury;

                  6.4.3.   A Bill of Sale, in the form agreed to by Seller and
                           Buyer, for the Personal Property, if any, in favor of
                           Buyer and duly executed by Seller;

                  6.4.4.   Such other documents as Escrow Holder may require
                           from Seller in order to issue the Title Policy;

                  6.4.5.   If not previously delivered to Buyer, Tenant's
                           estoppel certificates as required by and provided for
                           in Paragraph 4.2;

                  6.4.6.   A counterpart original of the Assignment Agreement
                           duly executed by Seller, assigning all of Seller's
                           right, title and interest in and to the Leases,
                           Contracts and Permits to Buyer from and after the
                           Close of Escrow;

                  6.4.7.   To the extent Seller has same in its possession or
                           control, Seller will leave at the Property, all keys
                           to all buildings and other improvements located on
                           the Real Property, combinations to any safes thereon,
                           and security devices therein in Seller's possession;

                  6.4.8.   A letter from Seller addressed to each Tenant
                           informing such Tenant of the change in ownership as
                           set forth;

                                        8

<PAGE>

                  6.4.9.   To the extent Seller has same in its possession or
                           control, Seller will leave at the Property, the
                           original Leases; and

                  6.4.10.  To the extent Seller has same in its possession or
                           control, Seller will leave at the Property, all
                           records and files relating to the management or
                           operation of the Real Property, including, without
                           limitation, all insurance policies, all service
                           contracts, all tenant files (including
                           correspondence), property tax bills, and all
                           calculations used to prepare statements of rental
                           increases under the Leases and statements of common
                           area charges, property taxes and other charges which
                           are paid by Tenants of the Real Property.

         6.5.     Buyer's Costs.

         Buyer shall pay the following:

                  6.5.1.   One-half (1/2) of Escrow Holder's fee, costs and
                           expenses;

                  6.5.2.   All other costs customarily borne by purchasers of
                           real property in Tarrant County, Texas;

                  6.5.3.   The cost of recording the Deed;

                  6.5.4.   The cost of updating the Survey;

                  6.5.5.   The cost of endorsements to the Title Policy,
                           including, without limitation, the deletion of the
                           Survey exception except for "shortages named"

         6.6.     Seller's Costs.

         Seller shall pay the following:

                  6.6.1.   One-half (1/2) of Escrow Holder's fees, costs and
                           expenses;

                  6.6.2.   Escrow Holder premium for the Standard T-1 Form of
                           Title Policy; and

                  6.6.3.   All other costs customarily borne by sellers of real
                           property in Tarrant County, Texas.

         6.7.     Prorations.

                  6.7.1.   Real property taxes, personal property taxes,
                           assessments, rents, and operating expenses shall be
                           prorated through Escrow between Buyer and Seller as
                           of Close of Escrow. All security deposits shall be
                           paid over to Buyer. Rents and CAM expenses shall be
                           approved by Buyer prior to Close of Escrow, Any
                           delinquent rents attributable to periods prior to the
                           Close of Escrow and which are collected by Buyer or
                           Seller shall be retained by or paid to Seller;
                           provided, however, that any amounts

                                       9
<PAGE>

                           collected by Buyer or Seller shall be first applied
                           to any rents then due to Buyer and, if collected by
                           Seller, remitted to Buyer for such purpose. Seller
                           shall have the right to pursue any Tenant for
                           delinquent rent, but shall not (a) cause Tenant to be
                           delinquent for their current rent or become
                           financially unstable or (b) have the right to seek
                           eviction of the Tenant by unlawful detainer or other
                           means. Tax and assessment prorations shall be based
                           on the latest available tax bill. If after Close of
                           Escrow either party receives any further or
                           supplemental tax bill relating to any period prior to
                           Close of Escrow, the recipient shall promptly deliver
                           a copy of such tax bill to the other party, and not
                           later than ten (10) days prior to the delinquency
                           date shown on such tax bill Buyer and Seller shall
                           deliver to the taxing authority their respective
                           shares of such tax bill, prorated as of Close of
                           Escrow. All prorations shall be based on a 365-day
                           year.

                           Any percentage rents due or paid under any of the
                           Leases ("Percentage Rent") shall be prorated between
                           Buyer and Seller outside of Escrow as of the date of
                           Close of Escrow on a Lease-by-Lease basis, as
                           follows; (a) Seller shall be entitled to receive the
                           portion of the Percentage Rent under each Lease for
                           the Lease Year in which Close of Escrow occurs, which
                           portion shall be the ratio of the number of days of
                           said Lease Year in which Seller was Landlord under
                           the Lease to the total number of days in the Lease
                           Year, and (b) Buyer shall receive the balance of
                           Percentage Rent paid under each Lease for the Lease
                           Year. As used herein, the term "Lease Year" means the
                           twelve (12) month period as to which annual
                           Percentage Rent is owed under each Lease. Upon
                           receipt by either Buyer or Seller of any gross sales
                           reports ("Gross Sales Reports") and any full or
                           partial payment of Percentage Rent from any tenant of
                           the Property, the party receiving the same shall
                           provide to the other party a copy of the Gross Sales
                           Report and a check for the other party's prorata
                           share of the Percentage Rent within five (5) days of
                           the receipt thereof. In the event that the Tenant
                           only remits a partial payment, then the amount to be
                           remitted to the other party shall be its prorata
                           share of the partial payment. Nothing contained
                           herein shall be deemed or construed to require either
                           Buyer to Seller to pay to the other party its prorata
                           share of the Percentage Rent prior to receiving the
                           Percentage Rent from the Tenant, and the acceptance
                           or negotiation of any check for Percentage Rent by
                           either party shall not be deemed a waiver of that
                           party's right to contest the accuracy or amount of
                           the Percentage Rent paid by the Tenant.

                  6.7.2.   All leasing commissions and tenant improvement costs
                           owing with respect to Leases of the Real Property
                           entered into prior to execution of the Agreement
                           including, but not limited to, commissions for lease
                           renewals and expansion options, shall be paid by
                           Seller, and Seller shall indemnify

                                       10

<PAGE>

                           and hold Buyer harmless for lease commission claims
                           brought against the Real Property or Buyer arising
                           therefrom. All leasing commissions and tenant
                           improvement costs for new Leases executed after the
                           date of this Agreement shall be prorated between
                           Buyer and Seller as their respective periods of
                           ownership of the Real Property bears to the primary
                           term of the new Lease, subject, in all events, to the
                           prior approval of said Leases as herein provided by
                           Buyer pursuant to Paragraph 7.3.

                  6.7.3.   Seller agrees to indemnify and hold Buyer harmless
                           from any and all liabilities, claims, demands, suits,
                           and judgments, of any kind or nature, including court
                           costs and reasonably attorney fees (except those
                           items which under the terms of this Agreement
                           specifically become the obligation of Buyer), brought
                           by third parties and based on amounts which are the
                           responsibility of Seller which are in any way related
                           to the Property.

                  6.7.4.   Buyer agrees to indemnify and hold Seller harmless of
                           and from any and all liabilities, claims, demands,
                           suits and judgments, of any kind or nature, including
                           court costs and reasonable attorneys fees, brought by
                           third parties and based on amounts which are the
                           responsibility of Buyer which are in any way related
                           to the Property.

         The provisions of this Section 6.7 shall survive the Close of Escrow.

         6.8.     Determination of Dates of Performance.

         Promptly after delivery to the Escrow Holder of a fully executed copy
         of this Agreement, Escrow Holder shall prepare and deliver to Buyer and
         Seller a schedule which shall state each of the following dates:

                  6.8.1.   The Effective Date pursuant to Paragraph 2.1.1;

                  6.8.2.   The date of receipt of the Title Documents by Buyer;

                  6.8.3.   The date by which title objections must be made by
                           Buyer pursuant to Paragraph 3.2;

                  6.8.4.   The Delivery Date pursuant to Paragraph 4.1;

                  6.8.5.   Expiration date of the Due Diligence Period;

                  6.8.6.   The date by which the amount described in Paragraph
                           2.1.3 must be deposited by Buyer; and

                  6.8.7.   The date of Close of Escrow pursuant to Paragraph
                           6.2.

                                       11

<PAGE>

         If any events which determine any of the aforesaid dates occur on a
         date other than the date specified or assumed for its occurrence in
         this Agreement, Escrow Holder shall promptly redetermine as appropriate
         each of the dates of performance in the aforesaid schedule and notify
         Buyer and Seller of the dates of performance, as redetermined.

7.       Seller Representations, Warranties, and Covenants.

         7.1.     Representations and Warranties.

         Seller hereby represents and warrants as of the date hereof and as of
         the Close of Escrow by appropriate certificate to Buyer as follows:

                  7.1.1.   Seller is a limited partnership duly formed and
                           validly existing under the law of the State of Texas.
                           Seller has full power and authority to enter into
                           this Agreement, to perform this Agreement and to
                           consummate the transactions contemplated hereby. The
                           execution, delivery and performance of this Agreement
                           and all documents contemplated hereby by Seller have
                           been duly and validly authorized by all necessary
                           action on the part of Seller and all required
                           consents and approvals have been duly obtained and
                           will not result in a breach of any of the terms or
                           provisions of, or constitute a default under, any
                           indenture, agreement or instrument to which Seller is
                           a party or otherwise bound. This Agreement is a
                           legal, valid and binding obligation of Seller,
                           enforceable against Seller in accordance with its
                           terms, subject to the effect of applicable
                           bankruptcy, insolvency, reorganization, arrangement,
                           moratorium or other similar laws affecting the rights
                           of creditors generally.

                  7.1.2.   Seller has indefeasible title to the Real Property,
                           subject to the Permitted Exceptions. To the best of
                           Seller's current actual knowledge, there are no
                           outstanding rights of first refusal, rights of
                           reverter or options relating to the Real Property or
                           any interest therein. To the best of Seller's current
                           actual knowledge, there are no unrecorded or
                           undisclosed documents or other matters which affect
                           title to the Real Property.

                  7.1.3.   Seller is not a "foreign person" within the meaning
                           of Section 1445(f) of the Internal Revenue Code of
                           1986, as amended (the "Code").

                  7.1.4.   There are no on-site employees of Seller at the Real
                           Property, and following the Close of Escrow, Buyer
                           shall have no obligation to employ or continue to
                           employ any individual employed by Seller or its
                           affiliates in connection with the Real Property.

                  7.1.5.   Except as set forth on any schedule of litigation
                           delivered pursuant to Paragraph 4.1.9, there are no
                           actions, suits or proceedings pending, or to the best
                           of Seller's current actual knowledge, threatened
                           against Seller and

                                       12

<PAGE>

                           affecting any portion of the Real Property, at law or
                           in equity, or before or by any federal, state,
                           municipal, or other governmental court, department,
                           commission, board, bureau, agency, or
                           instrumentality, domestic or foreign.

                  7.1.6.   Seller has not received any notice of any violations
                           of any ordinance, regulation, law, or statute of any
                           governmental agency pertaining to the Real Property
                           or any portion thereof.

                  7.1.7.   The information in the Rent Roll is true, correct and
                           complete. No persons, tenants or entities occupy
                           space in the Real Property, except as stated in the
                           Rent Roll. There are no written or oral agreements
                           that will obligate Buyer, as Seller's assignee, to
                           pay any such commission or fee under any Lease or
                           extension, expansion or renewal thereof. No rent or
                           other payments have been collected in advance for
                           more than one (1) month and no rents or other
                           deposits are held by Seller, except the security
                           deposits described on the Rent Roll and rent for the
                           current month.

                  7.1.8.   The operating statements furnished to Buyer in
                           connection with or pursuant to this Agreement (a)
                           accurately reflect the financial condition of the
                           Real Property as of the date thereof and (b) do not
                           fail to state any material liability, contingent or
                           otherwise, or any other facts the omission of which
                           would be misleading.

                  7.1.9.   To Seller's knowledge, there are no presently pending
                           or contemplated proceedings to condemn the Real
                           Property or any part of it.

                  7.1.10.  Seller has no knowledge of nor received any written
                           notice of violation issued pursuant to any
                           environmental law with respect to the Real Property
                           or any use or condition thereof.

         7.2.     Indemnity; Survival.

         The foregoing representations and warranties of Seller are made by
         Seller as of the date hereof and again as of Close of Escrow and shall
         survive the Close of Escrow for a period of one year and shall not be
         merged as of the date of the Close of Escrow hereunder.

         7.3.     Covenants of Seller. Seller hereby covenants from and after
                  the Effective Date as follows:

                  7.3.1.   To cause to be in force fire and extended coverage
                           insurance upon the Real Property, and public
                           liability insurance with respect to damage or injury
                           to persons or property occurring on the Real Property
                           in at least such amounts, and with the same
                           deductibles, as are maintained by Seller on the date
                           hereof.

                                       13

<PAGE>

                  7.3.2.   To maintain any building constituting an improvement
                           on the Real Property in the same physical condition
                           as it was at the date of Buyer's inspection,
                           reasonable wear and tear excepted, and to perform all
                           normal maintenance from and after the Effective Date
                           in the same fashion as prior to the Effective Date.

                  7.3.3.   To not enter into any new lease with respect to the
                           Real Property, without Buyer's prior, written
                           consent, which shall not be unreasonably withheld.
                           Exercise of a mandatory renewal option shall not be
                           considered a new lease. To the extent specifically
                           disclosed to Buyer in connection with any request for
                           approval, any brokerage commission and the cost of
                           Tenant improvements or other allowances payable with
                           respect to a new Lease shall be prorated between
                           Buyer and Seller in accordance with their respective
                           periods of ownership as it bears to the primary term
                           of the new Lease. After the expiration of the Due
                           Diligence Period, if the Agreement is still in full
                           force and effect, Seller will not modify or cancel
                           any existing Lease covering space in the Real
                           Property without first obtaining the written consent
                           of Buyer which shall not be unreasonably withheld.
                           Buyer shall have five (5) business days following
                           receipt of a request for any consent pursuant to this
                           paragraph in which to approve or disapprove of any
                           new Lease or any modification or cancellation of any
                           existing Lease. Failure to respond in writing within
                           said time period shall be deemed to be consent. If
                           Seller desires to enter into such lease or
                           modification of lease prior to the expiration of the
                           Due Diligence Period despite Buyer's objections to
                           such new or modified lease, Buyer may elect to either
                           (a) waive the Due Diligence Period, in which event
                           Seller shall not enter into such new or modified
                           lease, or (b) terminate this Agreement.

                  7.3.4.   To not sell, assign, or convey any right, title, or
                           interest whatsoever in or to the Real Property, or
                           create or permit to attach any lien, security
                           interest, easement, encumbrance, charge, or condition
                           affecting the Real Property (other than the Permitted
                           Exceptions).

                  7.3.5.   To not, without Buyer's written consent, which shall
                           not be unreasonably withheld, conditioned or delayed,
                           (a) amend or waive any right under any Contract, or
                           (b) enter into any service, operating or maintenance
                           agreement affecting the Real Property that would
                           survive the Close of Escrow.

                  7.3.6.   To fully and timely comply with all obligations to be
                           performed by it under the Leases and Contracts, and
                           all Permits, licenses, approvals and laws,
                           regulations and orders applicable to the Real
                           Property.

                  7.3.7.   To provide Buyer with monthly rent rolls containing
                           the same information in its rent roll delivered
                           pursuant to Paragraph 4.1.3.

                                       14

<PAGE>

                  7.3.8.   To provide Buyer with copies of (a) any default
                           letters sent to Tenants and, (b) any copies of
                           correspondence received from a Tenant that it is
                           "going dark" or seeking to re-negotiate its lease and
                           (c) notices of bankruptcy filings received with
                           respect to any Tenant.

8.       Buyer Representations and Warranties.

         Buyer hereby represents and warrants to Seller as of the date hereof
         and as of the Close of Escrow by appropriate certificate that:

         Buyer is a limited liability company duly organized and validly
         existing under the laws of the Commonwealth of Virginia. Buyer has full
         power and authority to enter into this Agreement, to perform this
         Agreement and to consummate the transactions contemplated hereby. The
         execution, delivery and performance of this Agreement and all documents
         contemplated hereby by Buyer have been duly and validly authorized by
         all necessary action on the part of Buyer and all required consents and
         approvals have been duly obtained and will not result in a breach of
         any of the terms or provisions of, or constitute a default under, any
         indenture, agreement or instrument to which Buyer is a party or
         otherwise bound. This Agreement is a legal, valid and binding
         obligation of Buyer, enforceable against Buyer in accordance with its
         terms, subject to the effect of applicable bankruptcy, insolvency,
         reorganization, arrangement, moratorium or other similar laws affecting
         the rights of creditors generally.

9.       Conditions Precedent to Close of Escrow.

         9.1.     Conditions Precedent.

         The obligations of Buyer to purchase the Property pursuant to this
         Agreement shall, at the option of Buyer, be subject to the following
         conditions precedent:

                  9.1.1.   All of the representations, warranties and agreements
                           of Seller set forth in this Agreement shall be true
                           and correct in all material respects as of the date
                           hereof and as of the Close of Escrow, and Seller
                           shall not have on or prior to the Close of Escrow,
                           failed to meet, comply with or perform in any
                           material respect any covenants or agreements on
                           Seller's part as required by the terms of this
                           Agreement.

                  9.1.2.   There shall be no change in the matters reflected in
                           the Title Documents, and there shall not exist any
                           encumbrance or title defect affecting the Real
                           Property not described in the Title Documents except
                           for the Permitted Exceptions or matters to be
                           satisfied at the Close of Escrow.

                  9.1.3.   Unless Seller receives notice from Buyer prior to the
                           Close of Escrow, effective as of the Close of Escrow,
                           any management agreement affecting the Real Property
                           shall be terminated by Seller and any and all
                           termination fees incurred as a result thereof shall
                           be the sole obligation of Seller.

                                       15

<PAGE>

                  9.1.4.   No Major Tenant shall be in default under its Lease
                           nor shall any Major Tenant have given notice that it
                           is discontinuing operations at the Real Property nor
                           shall a Major Tenant filed bankruptcy or sought any
                           similar debtor protective measure or be the subject
                           of an involuntary bankruptcy.

                  9.1.5.   If any Tenant security deposit is in a form other
                           than cash, the instrument constituting the security
                           deposit must be reissued in Buyer's name as of the
                           Close of Escrow or else a cash escrow equal to the
                           amount of the security deposit will be established at
                           the Close of Escrow until the instrument is reissued
                           in Buyer's name.

         9.2.     Effect of Failure.

         If Buyer notifies Seller of a failure to satisfy the conditions
         precedent set forth in this Paragraph 9, Seller may, within five (5)
         days after receipt of Buyer's notice, agree to satisfy the condition by
         written notice to Buyer, and Buyer shall thereupon be obligated to
         close the transaction provided (a) Seller so satisfies such condition
         and (b) no such right to cure shall extend the Close of Escrow beyond
         the five (5) day cure period. If Seller fails to agree to cure or fails
         to cure such condition by the Close of Escrow, this Agreement shall be
         automatically terminated, the Deposit shall be returned to Buyer
         without any further action required from either party and neither party
         shall have any continuing obligations hereunder; provided, however, if
         such failure constitutes a breach or default of its covenants,
         representations or warranties Seller shall remain liable for such
         breach or default as otherwise set forth in this Agreement.

10.      Damage or Destruction Prior to Close of Escrow.

         In the event that the Real Property should be damaged by any casualty
         prior to Close of Escrow, then Seller shall promptly provide Buyer with
         written notice of such casualty. If the cost of repairing such damage,
         as estimated by an architect or contractor retained pursuant to the
         mutual agreement of the parties (the "Cost of Repairs"), is (a) less
         than Five Hundred Thousand Dollars ($100,000), the Close of Escrow
         shall proceed as scheduled and any insurance proceeds, plus the cash
         amount of any associated deductible, shall be paid over to Buyer; or
         (b) greater than Five Hundred Thousand Dollars ($500,000), then Buyer
         may in its discretion either (i) elect to terminate this Agreement, in
         which case the Deposit shall be returned to Buyer without any further
         action required from either party and neither party shall have any
         further obligation to the other except for obligations herein that
         expressly survive termination or Close of Escrow or (ii) proceed to
         Close of Escrow in which event any insurance proceeds, plus the cash
         amount of any associated deductible, shall be paid over to Buyer. In
         the event that the casualty is uninsured, the Buyer may terminate this
         Agreement unless the Buyer receives a credit against the Purchase Price
         equal to the Cost of Repairs. The foregoing notwithstanding, in the
         event any casualty results in the cancellation of, or rental abatement
         under, any Lease, Buyer shall have the option to terminate this

                                       16

<PAGE>

         Agreement without regard to the cost of repairs. Any notice required to
         terminate this Agreement pursuant to this Paragraph shall be delivered
         no later than thirty (30) days following Buyer's receipt of Seller's
         notice of such casualty.

11.      Eminent Domain.

         If, before the Close of Escrow, proceedings are Commenced for the
         taking by exercise of the power of eminent domain of all or a material
         part of the Real Property which, as reasonably determined by Buyer,
         would render the Real Property unacceptable to Buyer or unsuitable for
         Buyer's intended use, Buyer shall have the right, by giving written
         notice to Seller within thirty (30) days after Seller gives notice of
         the commencement of such proceedings to Buyer, to terminate this
         Agreement, in which event this Agreement shall automatically terminate,
         the Deposit shall be returned to Buyer without any further action
         required from either party and neither party shall have any continuing
         obligations hereunder except for obligations herein that expressly
         survive termination or Close of Escrow. If, before the Close of Escrow,
         proceedings are commenced for the taking by exercise of the power of
         eminent domain of less than a material part of the Real Property, or if
         Buyer has the right to terminate this Agreement pursuant to the
         preceding sentence but Buyer does not exercise such right, then this
         Agreement shall remain in full force and effect and, on the Close of
         Escrow, the condemnation award (or, if not theretofore received, the
         right to receive such portion of the award) payable on account of the
         taking shall be assigned, or paid to, Buyer. Seller shall give written
         notice to Buyer within three (3) business days after Seller's receiving
         notice of the commencement of any proceedings for the taking by
         exercise of the power of eminent domain of all or any part of the Real
         Property. The foregoing notwithstanding, in the event the taking
         results in the cancellation of, or rent abatement under, any Lease,
         Buyer shall have the option to terminate this Agreement.

12.      Notices.

         All notices, demands, or other communications of any type given by any
         party hereunder, whether required by this Agreement or in any way
         related to the transaction contracted for herein, shall be void and of
         no effect unless given in accordance with the provisions of this
         Paragraph. All notices shall be in writing and delivered to the person
         to whom the notice is directed, either (a) in person, (b) by United
         States Mail, as a registered or certified item, return receipt
         requested, (c) by telecopy or (d) by a nationally recognized overnight
         delivery courier. Notices delivered by telecopy shall be deemed
         received upon electronic confirmation of receipt and overnight courier
         shall be deemed received on the business day following delivery to the
         overnight courier. Notices delivered by certified or registered mail
         shall be deemed delivered three (3) days following posting. Notices
         shall be given to the following addresses:

                                       17

<PAGE>

         Seller                    Western Place Skyrise, Ltd.
                                   18111 Preston Road, Suite 1000
                                   Dallas, Texas 75252
                                   Attn: Mr. Peter Kaufman
                                   (972)588-3606
                                   (972)733-3920 (fax)

         With Required Copy to:    Tod Fobare
                                   5757 Alpha Road, Suite 101
                                   Dallas, Texas 75240
                                   (972) 458-7585
                                   (972)458-0267 (fax)

         With Required Copy to:    Michael W. Reindollar
                                   Gardere Wynne Sewell LLP
                                   1601 Elm Street, Suite 3000
                                   Dallas, Texas 75201
                                   (214) 999-4192
                                   (214) 999-3192 fax

         Buyer                     Alex Vellandi & Theresa Hutton
                                   Triple Net Properties, LLC
                                   1551 N. Tustin Avenue, Suite 200
                                   Santa Ana, CA 92705
                                   (714) 667-8252
                                   (714) 667-6860 Fax

         With Required Copy to:    Louis J. Rogers, Esquire
                                   Hirschler Fleischer
                                   701 East Byrd Street, 15th Floor
                                   Richmond, VA 23219
                                   (804) 771-9567
                                   (804) 644-0957 Fax

13.      Remedies.

         13.1.    Defaults by Seller. If there is any default by Seller under
                  this Agreement, following notice to Seller and seven (7) days
                  thereafter during which period Seller may cure the default,
                  Buyer may at its option, as Buyer's sole and exclusive remedy
                  either (a) declare this Agreement terminated in which case the
                  Deposit shall be returned to Buyer without any further action
                  required from either party, or (b) treat the Agreement as
                  being in full force and effect and bring an action against
                  Seller for specific performance; provided, however, in that
                  event Buyer must file suit for specific performance with
                  ninety (90) days after the Scheduled Close of Escrow or such
                  remedy is waived, and in such action, Seller shall be

                                       18
<PAGE>

                  required to deliver only such title as Seller is able to
                  deliver. The foregoing notwithstanding, no right to cure shall
                  extend the Close of Escrow. In the event Seller willfully
                  fails or refuses to close, and Buyer is not in default, then
                  Seller may, in addition to terminating this Contract, maintain
                  an action against Seller for actual out-of-pocket expenses in
                  connection with Buyer's due diligence under this Agreement not
                  to exceed in the aggregate, $25,000.00.

         13.2.    Defaults by Buyer. If there is any default by Buyer under this
                  Agreement, Seller may, as its sole remedy, declare this
                  Agreement terminated, in which case the Deposit shall be paid
                  to Seller as liquidated damages and each party shall thereupon
                  be relieved of all further obligations and liabilities, except
                  any which survive termination. The foregoing notwithstanding,
                  no right to cure shall extend the Close of Escrow.

         In the event this Agreement is terminated due to the default of Buyer
         hereunder, Buyer shall, in addition, deliver to Seller, at no cost to
         Seller, the Due Diligence items and all inspection reports and results
         conducted or prepared by third parties.

14.      Assignment.

         Buyer may assign any or all of its rights and obligations under this
         Agreement to any one or more persons or entities controlled by or under
         common control with Buyer or Buyer's principals upon notice to Seller;
         provided however, that absent the express agreement of Seller, no such
         assignment shall release Buyer from its liabilities hereunder. Buyer
         must furnish a copy of the assignment at least three (3) business days
         prior to the Close of Escrow.

15.      Interpretation and Applicable Law.

         This Agreement shall be construed and interpreted in accordance with
         the laws of the State where the Real Property is located. Where
         required for proper interpretation, words in the singular shall include
         the plural; the masculine gender shall include the neuter and the
         feminine, and vice versa. The terms "successors and assigns" shall
         include the heirs, administrators, executors, successors, and assigns,
         as applicable, of any party hereto.

16.      Amendment.

         This Agreement may not be modified or amended, except by an agreement
         in writing signed by the parties. The parties may waive any of the
         conditions contained herein or any of the obligations of the other
         party hereunder, but any such waiver shall be effective only if in
         writing and signed by the party waiving such conditions and
         obligations.

                                       19

<PAGE>

17.      Attorney's Fees.

         In the event it becomes necessary for either party to file a suit to
         enforce this Agreement or any provisions contained herein, the
         prevailing party shall be entitled to recover, in addition to all other
         remedies or damages, reasonable attorneys' fees and costs of court
         incurred in such suit.

18.      Entire Agreement; Survival.

         This Agreement (and the items to be furnished in accordance herewith)
         constitutes the entire agreement between the parties pertaining to the
         subject matter hereof and supersedes all prior and contemporaneous
         agreements and understandings of the parties in connection therewith.
         No representation, warranty, covenant, agreement, or condition not
         expressed in this Agreement shall be binding upon the parties hereto
         nor shall affect or be effective to interpret, change, or restrict the
         provisions of this Agreement. None of the obligations of the parties
         hereunder nor any other provisions of this Agreement shall survive the
         Close of Escrow or earlier termination of this Agreement, except as
         expressly provided herein.

19.      Counterparts.

         This Agreement may be executed in any number of counterparts, all of
         which when taken together shall constitute the entire agreement of the
         parties.

20.      Acceptance.

         Time is of the essence of this Agreement. If the final date of any
         period falls upon a Saturday, Sunday, or legal holiday under the
         Federal law or laws of the State of Texas, then in such event the
         expiration date of such period shall be extended to the next day which
         is not a Saturday, Sunday, or legal holiday under Federal law or the
         laws of the State of Texas.

21.      Real Estate Commission.

         Seller and Buyer each represent and warrant to the other that neither
         Seller nor Buyer has contacted or entered into any agreement with any
         real estate broker, agent, finder or any other party in connection with
         this transaction, and that neither party has taken any action which
         would result in any real estate broker's, finder's or other fees or
         commissions being due and payable to any party with respect to the
         transaction contemplated hereby, except that Seller has contracted with
         CB Richard Ellis as its broker and will pay a commission equal to one
         percent (1%) times (the Purchase Price minus $1,000,000.00) to said
         broker and a commission of One Million Dollars ($1,000,000.00) to
         Triple Net Properties Realty, Inc. if, but only if, the Close of Escrow
         occurs pursuant to this Agreement. Such commission shall be payable
         upon the Close of Escrow from the proceeds of the Purchase Price
         deposited by Buyer. Each party hereby indemnifies and agrees to hold
         the other party harmless from any loss, liability, damage, cost, or
         expense

                                       20

<PAGE>

         (including reasonable attorneys' fees) resulting to the other party by
         reason of a breach of the representation and warranty made by such
         party in this Paragraph..

22.      Cooperation with S-X 3-14 Audit.

         The Seller acknowledges that Buyer intends to assign all of its rights,
         title and interest in and to this Agreement. The assignee may be a
         publicly registered company ("Registered Company") promoted by the
         Buyer. The Seller acknowledges that it has been advised that if the
         purchaser is a Registered Company, the assignee is required to make
         certain filings with the Securities and Exchange Commission (the "SEC
         Filings") that related to the most recent pre-acquisition fiscal year
         (the "Audited Year") for the Property. To assist the assignee in
         preparing the SEC Filings, the Seller agrees to provide, if and only to
         the extent that the same is in possession of Seller, and not otherwise,
         the assignee with the following:

         1.       Access to bank statements for the Audited year;

         2.       Rent Roll as of the end of the Audited Year;

         3.       Operating Statements for the Audited Year;

         4.       Access to the general ledger for the Audited Year;

         5.       Cash receipts schedule for each month in the Audited Year;

         6.       Access to invoice for expenses and capital improvements in the
                  Audited Year;

         7.       Copies of all insurance documentation for the Audited Year;

         8.       Copies of accounts receivable aging as of the end of the
                  Audited Year and an explanation for all accounts over 30 days
                  past due as of the end of the Audited Year; and

         9.       Copy of signed representation letter at the end of the field
                  work.

         This Section 22 shall survive Closing and shall not be merged into the
         Deed.

              THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK

                                       21

<PAGE>

                    SIGNATURE PAGE FOR AGREEMENT FOR PURCHASE
                AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS

EXECUTED on this 26th day of February, 2004

SELLER:

WESTERN PLACE SKYRISE, LTD.,
a Texas limited partnership

By:  WESTERN PLACE SKYRISE, GP, LLC.,
     its general partner

     By:  /s/ Leora Azoulay-Lesh
          -----------------------------------
     Name: Leora Azoulay-Lesh
     Title: VP

EXECUTED on this 25th day of February, 2004

BUYER:

TRIPLE NET PROPERTIES, LLC,
a Virginia limited liability company

By: /s/ Anthony W. Thompson
   ---------------------------
   Anthony W. Thompson
   President

                                       A-1

<PAGE>

TITLE COMPANY ACKNOWLEDGEMENT:

Title Company hereby acknowledges receipt of a fully executed copy of this
Agreement on February 27, 2004, and the Deposit on February 27, 2004.

                                       PARTNERS TITLE COMPANY

                                       By: /s/ Karen Highfield
                                           -------------------
                                       Its: KAREN HIGHFIELD
                                       Title: SR. V. P.

                                       23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]