Document:

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            ASSIGNMENT OF PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

                         E & R BELL ROAD, LLC, AS SELLER
                                       AND
                             SERIES B, LLC, AS BUYER

      ASSIGNOR, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, does hereby assign all of its right, title and
interest in that certain Purchase Agreement and Escrow Instructions described
herein, to ASSIGNEE and its successors and assigns. The Purchase Agreement and
Escrow Instructions is described as follows:

            DATE OF AGREEMENT:      September 9, 2005

            ORIGINAL BUYER:         Series B, LLC

            ASSIGNED TO:            Cole LZ Glendale AZ, LLC

            PROPERTY ADDRESS:       6976 West Bell Road, Glendale, AZ 85308

      ASSIGNOR acknowledges that it is not released from any and all obligations
or liabilities under said Purchase Agreement and Escrow Instructions with the
exception of the earnest money deposit which is currently in escrow.

      ASSIGNEE hereby agrees to assume and be responsible for all obligations
and liabilities under said Purchase Agreement and Escrow Instructions. This
Assignment shall be in full force and effect upon its full execution.

      Executed this 25th day of October, 2005.

ASSIGNOR:                                 ASSIGNEE:

SERIES B, LLC                             COLE LZ GLENDALE AZ, LLC

                                          By: Cole REIT Advisors II, LLC
By: /s/ John M. Pons_                         its Manager
    -----------------
    John M. Pons
    Authorized Officer

                                          By: /s/ John M. Pons
                                              --------------------
                                              John M. Pons
                                              Senior Vice President

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                                                                    EXHIBIT 10.6

                               PURCHASE AGREEMENT
                             AND ESCROW INSTRUCTIONS

                                     BETWEEN

                              E & R BELL ROAD, LLC

                                    AS SELLER

                                       AND

                                  SERIES B, LLC

                                    AS BUYER

                               September 9, 2005

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                               PURCHASE AGREEMENT
                             AND ESCROW INSTRUCTIONS

DATED:              Dated to be effective as of September 9, 2005 (the
                    "Effective Date").

PARTIES:            This Purchase Agreement and Escrow Instructions is
                    between E & R Bell Road, LLC, an Arizona limited liability
                    company, as "Seller", and Series B, LLC, an Arizona limited
                    liability company, as "Buyer".

      WHEREAS, as of the Effective Date, Seller is the fee title owner of that
certain parcel of improved property located at 6976 W. Bell Road, Glendale,
Arizona, and legally described on Exhibit A attached hereto (collectively, the
"Real Property");

      WHEREAS, as of the Effective Date, the Real Property is improved with a
building containing approximately 23,000 square feet (the "Building"). The Real
Property, the Building and the improvements to the Real Property (collectively,
the "Improvements") are leased to EBCO, Inc. ("Tenant") in accordance with a
written lease (the "Existing Lease"), which Existing Lease shall be replaced and
superseded as of COE (defined below) by a triple net lease between Tenant and
Buyer, in form acceptable to Buyer, Seller and Tenant (the "New Lease"), as
provided herein. The Real Property, the Building, the Improvements, the personal
property, if any, of Seller located on the Real Property and Seller's interest
in the Existing Lease and all rents issued and profits due or to become due
thereunder are hereinafter collectively referred to as the "Property";

      WHEREAS, Buyer desires to purchase the Property from Seller and Seller
desires to sell the Property to Buyer free and clear of all liens but subject to
the New Lease, all as more particularly set forth in this Purchase Agreement and
Escrow Instructions (the "Agreement"); and

      WHEREAS, Buyer and Seller have entered into that certain Purchase
Agreement and Escrow Instructions (the "Additional Agreement") relating to that
certain real property and improvements located at 5130 N. Highway 89, Flagstaff,
Arizona (the "Additional Property").

      NOW THEREFORE, in consideration of the promises set forth in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Seller and Buyer (each, a "Party" and,
collectively, the "Parties") hereby agree as follows:

      1. INCORPORATION OF RECITALS. All of the foregoing Recitals are hereby
incorporated as agreements of the Parties.

      2. BINDING AGREEMENT. This Agreement constitutes a binding agreement
between Seller and Buyer for the sale and purchase of the Property subject to
the terms set forth in this Agreement. Subject to the limitations set forth in
this Agreement, this Agreement shall

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bind and inure to the benefit of the Parties and their respective successors and
assigns. This Agreement supersedes all other written or verbal agreements
between the Parties concerning any transaction embodied in this Agreement. No
claim of waiver or modification concerning the provision of this Agreement shall
be made against a Party unless based upon a written instrument signed by such
Party.

      3. INCLUSIONS IN PROPERTY.

            (a) The Property. The term "Property" shall also include the
following:

                  (1) all tenements, hereditaments and appurtenances pertaining
to the Real Property;

                  (2) all interest, if any, of Seller in any mineral, water and
irrigation rights running with or otherwise pertaining to the Real Property;

                  (3) all interest, if any, of Seller in any road adjoining the
Real Property;

                  (4) all interest, if any, of Seller in any award made or to be
made or settlement in lieu thereof for damage to the Property or any portion
thereof by reason of condemnation, eminent domain or exercise of police power;

                  (5) all of Seller's interest in the Building, the Improvements
and any other improvements and fixtures on the Real Property;

                  (6) all of Seller's interest, if any, in any equipment,
machinery and personal property located on and used in connection with the Real
Property (collectively, the "Personalty");

                  (7) the Existing Lease and all security deposits, if any, now
or hereafter due thereunder; and,

                  (8) all of Seller's interest, to the extent transferable, in
all permits and licenses (collectively, the
"Permits"), warranties (specifically including, without limitation, any warranty
related to the roof of the Building), contractual rights and intangibles
(including rights to the architectural/engineering plans) with respect to the
operation, maintenance, repair or improvement of the Property (collectively, the
"Contracts").

            (b) The Transfer Documents. Except for the Personalty, which shall
be transferred by that certain bill of sale from Seller to Buyer, a specimen of
which is attached hereto as Exhibit C (the "Bill of Sale"); the Permits and
Contracts, which are to be transferred by that certain assignment agreement, a
specimen of which is attached hereto as Exhibit D (the "Assignment Agreement");
all components of the Property shall be transferred and conveyed by execution
and delivery by Seller of a special warranty deed, a specimen of which is
attached hereto as Exhibit E (the "Deed"). Upon the execution of the New Lease
by Tenant and Buyer at COE, the Existing Lease shall be terminated by that
certain termination of lease, a specimen of which is attached hereto as Exhibit
F (the "Termination of Existing Lease"). The Bill of Sale,

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the Assignment Agreement, the Deed and the Termination of Existing Lease are
hereinafter collectively referred to as the "Transfer Documents".

      4. PURCHASE PRICE. The price to be paid by Buyer to Seller for the
Property is Five Million Six Hundred Ninety One Thousand Five Hundred Twenty
Five and no/100 Dollars ($5,691,525.00) (the "Purchase Price"), payable as
follows:

            (a) One Hundred Thousand and no/100 Dollars ($100,000.00) earnest
money (the "Earnest Money Deposit") to be deposited in escrow with Fidelity
National Title Insurance Company, 40 N. Central Avenue, Suite 2850, Phoenix,
Arizona 85004, Attn.: Mary Garcia ("Escrow Agent") not later than three (3)
business days following the receipt by Escrow Agent of a fully-executed original
of this Agreement (said receipt by Escrow Agent of both a fully-executed
original of this Agreement and the Earnest Money Deposit, the "Opening of
Escrow"), which Earnest Money Deposit is to be held by Escrow Agent until
released to Seller or Buyer as provided herein or paid to Seller at close of
escrow ("COE"); and

            (b) Five Million Five Hundred Ninety One Thousand Five Hundred
Twenty Five and no/100 Dollars ($5,591,521.00), in additional cash, or other
immediately available funds (as may be increased or decreased by such sums as
are required to take into account any additional deposits, prorations, credits,
or other adjustments required by this Agreement), to be deposited in escrow with
Escrow Agent on or before COE (the "Additional Funds") which is to be held by
Escrow Agent until cancellation of this Agreement as provided herein or paid to
Seller at COE.

      5. DISPOSITION OF EARNEST MONEY DEPOSIT. Seller and Buyer hereby instruct
Escrow Agent to place the Earnest Money Deposit in a federally insured
interest-bearing passbook account on behalf of Seller and Buyer. The Earnest
Money Deposit and interest thereon shall be applied as follows:

            (a) if Buyer cancels this Agreement as Buyer is so entitled to do as
provided in this Agreement, the Earnest Money Deposit and all interest earned to
the effective date of withdrawal shall be paid immediately to Buyer;

            (b) if the Earnest Money Deposit is forfeited by Buyer pursuant to
this Agreement, such Earnest Money Deposit and all interest earned to the date
of withdrawal shall be paid to Seller pursuant to Section 21(b) below as
Seller's agreed and total liquidated damages, it being acknowledged and agreed
that it would be difficult or impossible to determine Seller's exact damages;
and

            (c) if escrow closes, the Earnest Money Deposit and all interest
earned to COE shall be credited to Buyer, automatically applied against the
Purchase Price and paid to Seller at COE.

      6. PRELIMINARY TITLE REPORT AND OBJECTIONS. (a) Within ten (10) days after
the Opening of Escrow, Escrow Agent shall deliver a current Preliminary Title
Report (the "Report") for an ALTA extended coverage title insurance policy (the
"Owner's Policy") on the Property to Buyer and Seller. The Report shall show the
status of title to the Property as of the date of such Report and shall also
describe the requirements of Escrow Agent for the

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issuance of an Owner's Policy as described herein. The cost of a standard
Owner's Policy will be paid for by Seller; Buyer shall pay additional costs for
an extended coverage policy. In addition to the Report, Escrow Agent shall
simultaneously deliver to Buyer complete, legible copies of all documents
identified in Part Two of Schedule B of the Report.

            (b) If Buyer is dissatisfied with any exception to title as shown in
the Report (an "Objectionable Report"), then Buyer may, by giving written notice
thereof to Escrow Agent and Seller on or before expiration of the Study Period
(as defined below) or ten (10) days from Buyer's receipt of such Objectionable
Report, whichever is later (provided, however, Buyer shall have not less than
ten (10) days from its receipt of the Survey (as defined in Section 9 below)
corresponding to the Property to object to any matters disclosed on or by such
Survey that were not previously disclosed by seller's existing survey
corresponding to the Property), either (i) terminate this Agreement and the
Additional Agreement, whereupon the Earnest Money Deposit plus interest shall be
returned immediately to Buyer and, except as otherwise provided in this
Agreement, neither of the Parties shall have any further liability or obligation
under this Agreement, or (ii) provisionally accept the title subject to Seller's
agreement to cause the removal of any disapproved exceptions or objectionable
matters. Seller shall be under no obligation to cause the removal of any such
exceptions or matters, but in the event Seller agrees, in its sole discretion,
to do so, Seller shall attempt (at its sole cost) to remove the exceptions or
objections (or, if acceptable to Buyer, obtain title insurance endorsements over
the exceptions and objections) before the Closing Date. If Seller agrees to
attempt to cause the removal of such exceptions or matters but is unable to do
so prior to the Closing Date, Buyer may proceed under option (i) above, or Buyer
may waive such exceptions or objections.

            If Buyer gives notice to Seller of its election of option (ii)
above, Seller shall notify Buyer in writing within five (5) days after receiving
Buyer's written notice of disapproval of any exceptions or objectionable matters
if Seller does not intend to remove (or endorse over) any such exception and/or
objectionable matter. Seller's lack of response shall be deemed as Seller's
decision to not remove the objectionable matters and exceptions (or obtain title
insurance endorsements over said exceptions and objectionable matters, if
acceptable to Buyer) prior to the Closing Date.

            (c) In the event the Report is amended to include new exceptions
that are not set forth in the prior Report, Buyer shall have until the later of
(i) the expiration of the Study Period, or (ii) the date seven (7) days after
Buyer's receipt of the amended Report and copies of the documents identified in
the new exceptions or new requirements (provided, however, Buyer shall have not
less than five (5) days from its receipt of any Survey revised to reflect any
such new exceptions to object to any matters disclosed on or by such revised
Survey related to such new exceptions), within which to either (Y) terminate
this Agreement and the Additional Agreement, whereupon the Earnest Money Deposit
plus interest shall be returned immediately to Buyer and, except as otherwise
provided in this Agreement, neither of the Parties shall have any further
liability or obligation under this Agreement, or (Z) to provisionally accept the
title to the Property subject to Seller's agreement to cause the removal of any
disapproved exceptions or objections. Unless Seller expressly agrees to attempt
to cause the removal of such exceptions or objections, Seller shall be under no
obligation to remove said exceptions or objections.

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            If Buyer gives notice to Seller of its election of option (Z) above,
Seller shall notify Buyer in writing within five (5) days after receiving
Buyer's written notice of disapproval of any exceptions or objectionable matters
if Seller does not intend to remove (or endorse over) any such exception and/or
objectionable matter. Seller's lack of response shall be deemed as Seller's
decision to not remove the objectionable matters and exceptions (or obtain title
insurance endorsements over said exceptions and objectionable matters, if
acceptable to Buyer) prior to the Closing Date.

            (d) In the event Buyer provisionally accepts title to the Property
pursuant to Sections 6(b) and/or 6(c) above, if Seller serves notice (or is
deemed to have served notice) to Buyer that Seller does not intend to remove
such exceptions and/or objections before COE, Buyer shall, within ten (10) days
after receipt of such notice from Seller, notify Seller and Escrow Agent in
writing of Buyer's election to either (i) terminate this Agreement and the
Additional Agreement, whereupon the Earnest Money Deposit plus interest shall be
returned immediately to Buyer and, except as otherwise provided in this
Agreement, neither of the Parties shall have any further liability or obligation
under this Agreement, or (ii) waive such objections. If written notice of either
satisfaction or dissatisfaction as to the Report is not timely given by Buyer to
Seller pursuant to this Section 6, then Buyer shall be deemed to have
disapproved of the condition of the title of the Property, and shall have
elected to terminate this Agreement and the Additional Agreement, whereupon the
Earnest Money Deposit plus interest shall be returned immediately to Buyer and,
except as otherwise provided in this Agreement, neither of the Parties shall
have any further liability or obligation under this Agreement.

            (e) In the event of a termination of the Additional Agreement by
Buyer pursuant to Section 6 of the Additional Agreement, this Agreement shall be
deemed to be terminated, whereupon the Earnest Money Deposit plus interest shall
be returned immediately to Buyer and, except as otherwise provided in this
Agreement, neither of the Parties shall have any further liability or obligation
under this Agreement.

      7. BUYER'S STUDY PERIOD.

            (a) The Study Period. Buyer shall have until the later of 5:00 p.m.
MST on the thirtieth (30th) day after the Opening of Escrow (the "Study
Period"), at Buyer's sole cost, within which to conduct and approve any
investigations, studies or tests deemed necessary by Buyer, in Buyer's sole
discretion, to determine the feasibility of acquiring the Property, including,
without limitation, Buyer's right to: (i) review and approve the Survey, the
Existing Lease, Seller's operating statements with respect to the Property, and
the Contracts; (ii) meet and confer with Tenant; and, (iii) obtain, review and
approve an environmental study of each of the Property (collectively, "Buyer's
Diligence").

            (b) Right of Entry. Subject to the prior rights of Tenant in the
Property, Seller hereby grants to Buyer and Buyer's agents, employees and
contractors the right to enter upon the Property, during regular business hours
during the Study Period, to conduct Buyer's Diligence. In consideration
therefor, Buyer shall and does hereby agree to indemnify and hold Seller
harmless from any and all liabilities, claims, losses or damages, including, but
not limited to, court costs and attorneys' fees, which may be incurred by Seller
as a direct result of Buyer's

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Diligence. Buyer's indemnity and hold harmless obligation shall survive
cancellation of this Agreement or COE.

            (c) Cancellation. Unless Buyer so notifies Seller or Escrow Agent,
in writing, on or before the end of the Study Period, of Buyer's acceptance of
the Property and waiver of the contingencies as set forth in this Section 7,
this Agreement and the Additional Agreement shall be canceled and the Earnest
Money Deposit plus all interest accrued thereon shall be returned immediately to
Buyer and, except as otherwise provided in this Agreement, neither of the
Parties shall have any further liability or obligation under this Agreement. In
the event of a cancellation of the Additional Agreement by Buyer pursuant to
Section 7 of the Additional Agreement, this Agreement shall be deemed to be
terminated, whereupon the Earnest Money Deposit plus interest shall be returned
immediately to Buyer and, except as otherwise provided in this Agreement,
neither of the Parties shall have any further liability or obligation under this
Agreement.

            (d) Acceptance. If Buyer notifies Seller or Escrow Agent of Buyer's
acceptance of the Property as provided in Section 7(c) above, the entire Earnest
Money Deposit, as the same may be increased during the term of this Agreement,
shall, except as otherwise expressly provided herein, become non-refundable to
Buyer. Unless Buyer's performance hereunder is excused due to a failure of a
condition of closing (other than as a result of the action or inaction of
Buyer), a breach by Seller of this Agreement or any other reason expressly
provided herein, if Buyer fails to close escrow within the time period set forth
in Section 18 below or if Buyer otherwise breaches this Agreement, the Earnest
Money Deposit shall be forfeited to Seller as provided in Section 5(b) above.

      8. DELIVERY OF SELLER'S DILIGENCE MATERIALS.

            (a) Deliveries to Buyer. Seller agrees to deliver to Buyer
contemporaneously with the Opening of Escrow all information in Seller's
possession or control relating to the leasing, operating, maintenance,
construction, repair, zoning (including any zoning verification letters),
platting, engineering, soil tests, water tests, environmental tests, master
planning, architectural drawings and like matters regarding the Property
(collectively, "Seller's Diligence Materials"), all at no cost to Buyer. From
and after the Opening of Escrow, Seller agrees to provide to Buyer any other
documents or information in the possession or control of Seller or its agents
pertaining to the Property that Buyer may reasonably request in writing.

            (b) Delivery by Buyer. If this Agreement is canceled for any reason,
except Seller's willful default hereunder, Buyer agrees to deliver to Seller (i)
all Seller's Diligence Materials received by Buyer from Seller, and (ii) upon
payment by Seller to Buyer of Buyer's cost thereof, copies of those
investigations, studies and/or tests which Buyer may have elected to obtain.

      9. THE SURVEY. Seller, at Seller's cost, shall, within twenty five (25)
days of Opening of Escrow, cause a certified ALTA survey of the Real Property,
Building and Improvements comprising the Property (the "Survey") to be completed
by a surveyor licensed in the State of Arizona and delivered to Buyer and Escrow
Agent, whereupon the legal description in the Survey shall control over the
description in Exhibit A-1 attached hereto to the extent they

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may be inconsistent. The Survey shall set forth the legal description and
boundaries of the parcel of Real Property and all easements, encroachments and
improvements thereon.

      10. IRS SECTION 1445. Seller shall furnish to Buyer in escrow by COE a
sworn affidavit (the "Non-Foreign Affidavit") stating under penalty of perjury
that Seller is not a "foreign person" as such term is defined in Section
1445(f)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). If
Seller does not timely furnish the Non-Foreign Affidavit, Buyer may withhold (or
direct Escrow Agent to withhold) from the Earnest Money Deposit and/or the
Additional Funds, an amount equal to the amount required to be so withheld
pursuant to Section 1445(a) of the Code, and such withheld funds shall be
deposited with the Internal Revenue Service as required by such Section 1445(a)
and the regulations promulgated thereunder. The amount withheld, if any, shall
nevertheless be deemed to be part of the Purchase Price paid to Seller.

      11. DELIVERY OF POSSESSION. Seller shall deliver possession of the
Property to Buyer at COE subject only to the rights of Tenant under the New
Lease as agreed to by Seller, Tenant and Buyer.

      12. BUYER'S CONDITIONS PRECEDENT. In addition to all other conditions
precedent for Buyer set forth in this Agreement, Buyer's obligations to perform
under this Agreement and to close escrow are expressly subject to the following:

            (a) the delivery by Seller to Escrow Agent, for delivery to Buyer at
COE, of the executed original Transfer Documents;

            (b) the issuance of the Owner's Policy (or a written commitment
therefor) subject only to those matters approved or deemed approved by Buyer
pursuant to this Agreement;

            (c) the delivery by Seller to Buyer at COE of all security deposits
and pre-paid/abated rents under the Existing Lease, if any, in the form of a
credit in favor of Buyer against the Additional Funds;

            (d) the deposit by Seller with Buyer prior to expiration of the
Study Period of (i) an executed original estoppel certificate naming Buyer (or
its designee) and Wachovia Bank, National Association, as addressees, which
certificate must be reasonably acceptable to Buyer, in Tenant's standard form,
and (ii) a subordination, non-disturbance and attornment agreement, in form and
substance reasonably acceptable to Tenant, for the benefit of Wachovia Bank,
National Association, both executed by Tenant with respect to the Existing
Lease;

            (e) the agreement of Buyer, Seller and Tenant to a mutually
agreeable form of New Lease prior to the expiration of the Study Period, and
subsequent to such agreement, the delivery by Tenant to Escrow Agent, no later
than five (5) business days prior to COE, of such New Lease, fully executed by
Tenant;

            (f) the deposit with Escrow Agent and Buyer prior to the expiration
of the Study Period of an executed waiver by Tenant of any right of first
refusal under the Existing Lease;

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            (f) the deposit with Escrow Agent of an executed affidavit of Seller
and such other documentation as may be reasonably required by Escrow Agent to
allow for the deletion of the mechanics' lien exception from the Owner's Policy;

            (g) the delivery by Seller prior to expiration of the Study Period
to Buyer of the Certificate of Occupancy for the Property;

            (h) the deposit with Escrow Agent of a letter from Seller to Tenant
requesting that future rent under the New Lease be paid to Buyer; and

            (i) delivery to Buyer of fully-executed originals of the Contracts
and Permits, if any, in the possession of Seller or Seller's agents and any
correspondence with respect thereto, together with such non-proprietary leasing
and property manuals, files and records which are material in connection with
the continued operation, leasing and maintenance of the Property.

If the foregoing conditions have not been satisfied by the specified date or COE
as the case may be, and provided that Buyer is not in breach of this Agreement
and is otherwise ready and able to perform its obligations hereunder, then Buyer
shall have the right, at Buyer's sole option, by giving written notice to Seller
and Escrow Agent, to (i) cancel this Agreement and the Additional Agreement, or
(ii) extend COE for up to thirty (30) days during which time Seller shall
endeavor to satisfy any and all unsatisfied condition or conditions. In the
event this Agreement and the Additional Agreement are terminated, the Earnest
Money Deposit plus interest shall be paid immediately by Escrow Agent to Buyer
and, except as otherwise provided in this Agreement, neither of the Parties
shall have any further liability or obligation under this Agreement. In the
event COE is extended as provided above, close of escrow under the Additional
Agreement shall be extended by the same amount of time as COE is extended
hereunder.

In the event of a termination of the Additional Agreement by Buyer pursuant to
Section 12 of the Additional Agreement, this Agreement shall be deemed to be
terminated, whereupon the Earnest Money Deposit plus interest shall be returned
immediately to Buyer and, except as otherwise provided in this Agreement,
neither of the Parties shall have any further liability or obligation under this
Agreement. In the event close of escrow under the Additional Agreement shall be
extended pursuant to Section 12 of the Additional Agreement, COE under this
Agreement shall be deemed to be extended by the same amount of time as close of
escrow under the Additional Agreement is extended.

Nothing contained in this Section 12 shall limit or otherwise modify Buyer's
rights under Section 21(a) of this Agreement in the event of a breach of this
Agreement by Seller.

13. SELLER'S CONDITIONS PRECEDENT. In addition to all other conditions precedent
for Seller set forth in this Agreement, Seller's obligation to perform under
this Agreement and to close escrow are expressly subject to the following:

            (a) prior to COE, the execution, by Buyer, of the New Lease in a
form agreeable to Seller and Tenant and Buyer's delivery of same to Escrow
Agent;

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            (b) the delivery by Buyer to Escrow Agent prior to COE of all
documents reasonably necessary to close escrow;

            (c) the deposit by Buyer with Escrow Agent of all amounts necessary
to pay the Purchase Price on or before the COE; and

            (d) the Buyer's performance of all of its obligations hereunder so
as to allow COE to timely occur as provided herein.

If the foregoing conditions have not been satisfied by the specified date or
COE, as the case may be, and provided that Seller is not in breach of this
Agreement and all the conditions set forth in Section 12 above have been
satisfied, then Seller shall have the right, at Seller's sole option, by giving
written notice to Buyer and Escrow Agent, to (i) cancel this Agreement and the
Additional Agreement, or (ii) extend COE for up to thirty (30) days during which
time Buyer shall endeavor to satisfy any and all unsatisfied condition or
conditions. In the event this Agreement and the Additional Agreement are
terminated, the Earnest Money Deposit plus interest shall be paid immediately by
Escrow Agent to Seller and, except as otherwise provided in this Agreement,
neither of the Parties shall have any further liability or obligation under this
Agreement. In the event COE is extended as provided above, close of escrow under
the Additional Agreement shall be extended by the same amount of time as COE is
extended hereunder.

In the event of a termination of the Additional Agreement by Seller pursuant to
Section 13 of the Additional Agreement, this Agreement shall be deemed to be
terminated, whereupon the Earnest Money Deposit plus interest shall be paid to
Seller and, except as otherwise provided in this Agreement, neither of the
Parties shall have any further liability or obligation under this Agreement. In
the event close of escrow under the Additional Agreement shall be extended
pursuant to Section 13 of the Additional Agreement, COE under this Agreement
shall be deemed to be extended by the same amount of time as close of escrow
under the Additional Agreement is extended.

Nothing contained in this Section 13 shall limit or otherwise modify Seller's
rights under Section 21(b) of this Agreement in the event of a breach of this
Agreement by Buyer.

      14. SELLER'S WARRANTIES. Seller hereby represents and warrants to Buyer as
of the Effective Date and again as of COE that:

            (a) to Seller's actual knowledge, there are no unrecorded leases
(other than the Existing Lease), liens or encumbrances which may affect title to
the Property;

            (b) to Seller's actual knowledge, no notice of violation has been
issued with regard to any applicable regulation, ordinance, requirement,
covenant, condition or restriction relating to the present use or occupancy of
the Property by any person, authority or agency having jurisdiction;

            (c) to Seller's actual knowledge, there are no intended public
improvements which will or could result in any charges being assessed against
the Property which will result in a lien upon the Property;

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            (d) to Seller's actual knowledge, there is no impending or
contemplated condemnation or taking by inverse condemnation of the Property, or
any portion thereof, by any governmental authorities;

            (e) there are no suits or claims pending or to Seller's actual
knowledge, threatened with respect to or in any manner affecting the Property,
nor does Seller know of any circumstances which should or could reasonably form
the basis for any such suits or claims which have not been disclosed in writing
to Buyer by Seller;

            (f) Seller has not entered into and there is not existing any other
agreement, written or oral, under which Seller is or could become obligated to
sell the Property, or any portion thereof, to a third party and Seller will not
enter into nor execute any such agreement without Buyer's prior written consent;

            (g) Seller has not and will not, without the prior written consent
of Buyer, take any action before any governmental authority having jurisdiction
thereover, the object of which would be to change the present zoning of or other
land-use limitations, upon the Property, or any portion thereof, or its
potential use, and, to Seller's actual knowledge, there are no pending
proceedings, the object of which would be to change the present zoning or other
land-use limitations;

            (h) this transaction will not in any way violate any other
agreements to which Seller is a party;

            (i) Seller has full power and authority to execute, deliver and
perform under this Agreement as well as under the Transfer Documents, specimens
of which are attached hereto as Exhibits;

            (j) no default of Seller exists under any of the Contracts and, to
Seller's knowledge, no default of any of the other parties exists under any of
the Contracts;

            (k) no consent of any third party is required in order for Seller to
enter into this Agreement and perform Seller's obligations hereunder;

            (l) except for any item to be prorated at COE in accordance with
this Agreement, all bills or other charges, costs or expenses arising out of or
in connection with or resulting from Seller's use, ownership, or operation of
the Property up to COE shall be paid in full by Seller;

            (m) all general real estate taxes, assessments and personal property
taxes that have become due with respect to the Property (except for those that
will be prorated at COE) have been paid or will be so paid by Seller prior to
COE;

            (n) between the Effective Date and COE or any earlier termination of
this Agreement, Seller shall not execute or enter into any lease with respect to
the Property, or terminate, amend, modify, extend or waive any rights under the
Existing Lease without Buyer's prior written consent, which consent may be
withheld at Buyer's discretion;

            (o) Seller agrees that, between the Effective Date and COE or any
earlier termination of this Agreement, Seller shall, at its sole cost:

                  (1) continue to operate the Property as heretofore operated by
Seller;

                                       10
<PAGE>

                  (2) maintain or cause Tenant to maintain the Property in its
current condition and perform required and routine maintenance and make
replacements of each part of the Property that is tangible property (whether
real or personal) and perform repairs or make replacements to any broken,
defective or disfunctioning portion of the Property that is tangible property
(whether real or personal) as the relevant conditions require;

                  (3) pay or cause Tenant to pay (as applicable) prior to COE,
all sums due for work, materials or services furnished or otherwise incurred in
the ownership, use or operation of the Property up to COE;

                  (4) comply or cause Tenant to comply with all governmental
requirements applicable to the Property;

                  (5) except as required by a governmental agency, not place or
permit to be placed on any portion of the Property any new improvements of any
kind or remove or permit any improvements to be removed from the Property
without the prior written consent of Buyer;

                  (6) not restrict, rezone, file or modify any development plan
or zoning plan or establish or participate in the establishment of any
improvement district with respect to all or any portion of the Property without
Buyer's prior written consent; and

                  (7) without Buyer's prior written consent, Seller shall not,
by voluntary or intentional act or omission to act, further cause or create any
easement, encumbrance, or mechanic's or materialmen's liens, and/or similar
liens or encumbrances to arise or to be imposed upon the Property or any portion
thereof that effects title thereto;

            (p) Seller has no actual knowledge that there exists or has existed,
and Seller itself has not caused any generation, production, location,
transportation, storage, treatment, discharge, disposal, release or threatened
release upon, under or about the Property of any Hazardous Materials. "Hazardous
Materials" shall mean any flammables, explosives, radioactive materials,
hazardous wastes, hazardous and toxic substances or related materials, asbestos
or any material containing asbestos (including, without limitation, vinyl
asbestos tile), or any other substance or material, defined as a "hazardous
substance" by any federal, state, or local environmental law, ordinance, rule or
regulation including, without limitation, the Federal Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, the
Federal Hazardous Materials Transportation Act, as amended, the Federal Resource
Conservation and Recovery Act, as amended, and the rules and regulations adopted
and promulgated pursuant to each of the foregoing;

            (q) to Seller's actual knowledge, there is not now, nor has there
ever been, on or in the Property or any portion thereof underground storage
tanks, any asbestos-containing materials or any polychlorinated biphenyls,
including those used in hydraulic oils, electric transformers, or other
equipment. Seller hereby assigns to Buyer, effective as of COE, all claims,
counterclaims, defenses, or actions, whether at common law, or pursuant to any
other applicable federal or state or other laws which Seller may have against
any third parties relating to the existence of any Hazardous Materials in, at,
on, under or about the Property (including

                                       11
<PAGE>
Hazardous Materials released on the Property prior to COE and continuing in
existence on the Property at COE);

            (r) to Seller's actual knowledge, there are no proceedings pending
for the increase of the assessed valuation of the Property or any portion
thereof;

            (s) should Seller receive notice or actual knowledge of any
information regarding any of the matters set forth in this Section 13 after the
Effective Date and prior to COE, Seller will immediately notify Buyer of the
same in writing;

            (t) the execution, delivery and performance of this Agreement and
the Transfer Documents, specimens of which are attached hereto as Exhibits, have
not and will not constitute a breach or default under any other agreement, law
or court order under which Seller is a party or may be bound; and

            (u) all representations made in this Agreement by Seller shall
survive the execution and delivery of this Agreement and COE. Seller shall and
does hereby indemnify against and hold Buyer harmless from any loss, damage,
liability and expense, together with all court costs and attorneys' fees which
Buyer may incur, by reason of any material misrepresentation by Seller or any
material breach of any of Seller's warranties. Seller's indemnity and hold
harmless obligations shall survive COE.

      15. BUYER'S WARRANTIES. Buyer hereby represents to Seller as of the
Effective Date and again as of COE that:

            (a) Buyer has full power and authority to execute, deliver and
perform under this Agreement as well as under the Transfer Documents, specimens
of which are attached hereto as Exhibits;

            (b) there are no actions or proceedings pending or to Buyer's
knowledge, threatened against Buyer which may in any manner whatsoever affect
the validity or enforceability of this Agreement or any of the documents,
specimens of which are attached hereto as Exhibits, or impact Buyer's ability to
fulfill its obligations contained herein;

            (c) the execution, delivery and performance of this Agreement and
the Transfer Documents, specimens of which are attached hereto as Exhibits, have
not and will not constitute a breach or default under any other agreement, law
or court order under which Buyer is a party or may be bound;

            (d) should Buyer receive notice or knowledge of any information
regarding any of the matters set forth in this Section 15 after the Effective
Date and prior to COE, Buyer will promptly notify Seller of the same in writing;
and

            (e) all representations made in this Agreement by Buyer shall
survive the execution and delivery of this Agreement and COE. Buyer shall and
does hereby indemnify against and hold Seller harmless from any loss, damage,
liability and expense, together with all court costs and attorneys' fees which
Seller may incur, by reason of any material misrepresentation by Buyer or any
material breach of any of Buyer's warranties. Buyer's indemnity and hold
harmless obligations shall survive COE.

      16. RENTS AND DEPOSITS. Seller and Buyer agree that, in addition to all
other conditions and covenants contained herein, Seller shall deliver to Buyer
and Escrow Agent not later than the day immediately prior to COE information,
certified by Seller to be true and

                                       12
<PAGE>

accurate as of the date thereof and as of the date of COE, with respect to (i)
the amount of Tenant's security deposit under the Existing Lease, if any, and
(ii) prepaid and/or abated rents, including, without limitation, the amount
thereof and the date to which such rents have been paid.

      17. BROKER'S COMMISSION. Concerning any brokerage commission, the Parties
agree as follows:

            (a) the Parties warrant to one another that they have not dealt with
any finder, broker or realtor in connection with this Agreement except Staubach
Investment Sales ("Broker");

            (b) if any person shall assert a claim to a finder's fee or
brokerage commission on account of alleged employment as a finder or broker in
connection with this Agreement (including Broker), the Party under whom the
finder or broker is claiming shall indemnify and hold the other Party harmless
from and against any such claim and all costs, expenses and liabilities incurred
in connection with such claim or any action or proceeding brought on such claim,
including, but not limited to, counsel and witness fees and court costs in
defending against such claim. The provisions of this subsection shall survive
cancellation of this Agreement or COE; and

            (c) Seller shall be responsible for payment of a commission to
Broker in an amount equal to One Hundred Thousand and no/100 Dollars
($100,000.00), which commission shall be paid at COE.

      18. CLOSE OF ESCROW. COE shall be on or before 5:00 p.m. MST on the
fifteenth (15th) day after the expiration of the Study Period (as such Study
Period may be extended pursuant to Section 6(b) hereof) or such earlier date as
Buyer may choose by giving written notice thereof to Seller and Escrow Agent.
Notwithstanding the foregoing, the Parties acknowledge and agree that COE for
the Property shall occur simultaneously with close of escrow for the Additional
Property, and thus COE may be adjusted to ensure such a simultaneous closing
with the Additional Property. Buyer may extend the COE date as to the Property
for up to an additional thirty (30) days upon delivery of written notice to
extend the COE date to Escrow Agent prior to the original COE date and by
depositing an additional Fifty Thousand and no/100 Dollars ($50,000.00) of
earnest money with Escrow Agent, provided, however, Buyer must also elect to
extend the close of escrow of the Additional Property for an identical period of
time as provided in Section 18 of the Additional Agreement. For purposes of this
Agreement, any additional earnest money deposited with Escrow Agent pursuant to
this Section 18 shall be added to and become a part of the Earnest Money
Deposit.

      19. ASSIGNMENT. Either Party may assign its rights under this Agreement to
an affiliate of such Party, or as required under an Exchange (defined below),
without seeking or obtaining the other Party's consent. Such assignment shall
not become effective until the assignee executes an instrument whereby such
assignee expressly assumes each of the obligations of the assigning Party under
this Agreement. Buyer may also designate someone other than Buyer, as grantee
and/or assignee, under the Transfer Documents by providing written notice of
such designation at least five (5) days prior to COE. No assignment shall
release or otherwise relieve either Party from any obligations hereunder.

                                       13
<PAGE>

      20. RISK OF LOSS. Seller shall bear all risk of loss, damage or taking of
the Property which may occur prior to COE. In the event of any loss, damage or
taking with respect to the Property prior to COE, Buyer may, at Buyer's sole
option, by written notice to Seller and Escrow Agent, terminate this Agreement
and the Additional Agreement, whereupon the Earnest Money Deposit plus interest
shall be paid immediately to Buyer and, except as otherwise provided in this
Agreement, neither of the Parties shall have any further liability or obligation
hereunder. In the alternative, Buyer may attempt to negotiate an appropriate
downward adjustment of the Purchase Price. If Seller and Buyer cannot agree upon
such a downward adjustment within a reasonable period (not to exceed ten (10)
days from the date Buyer receives notice of the loss) Buyer may terminate this
Agreement and the Additional Agreement as provided above. If Buyer waives any
such loss or damage to any such Property and closes escrow, Seller shall at COE
and as a condition precedent thereto, pay Buyer or credit Buyer against the
Additional Funds the amount of any insurance or condemnation proceeds, or assign
to Buyer, as of COE and in a form acceptable to Buyer, all rights or claims for
relief to the same.

            In the event of a termination of the Additional Agreement by Buyer
pursuant to Section 20 of the Additional Agreement, this Agreement shall be
deemed to be terminated, whereupon the Earnest Money Deposit plus interest shall
be returned immediately to Buyer and, except as otherwise provided in this
Agreement, neither of the Parties shall have any further liability or obligation
under this Agreement.

      21. REMEDIES.

            (a) Seller's Breach. If Seller breaches this Agreement, Seller shall
also be deemed to have breached the Additional Agreement and Buyer may, at
Buyer's sole option, either: (i) by written notice to Seller and Escrow Agent,
cancel this Agreement and the Additional Agreement in its entirety whereupon the
Earnest Money Deposit plus interest shall be paid immediately by Escrow Agent to
Buyer and, except as otherwise provided in this Agreement, neither of the
Parties shall have any further liability or obligation hereunder; or, (ii) seek
specific performance against Seller in which event COE shall be automatically
extended as necessary. Notwithstanding the foregoing, if specific performance is
unavailable as a remedy to Buyer because of Seller's affirmative acts, Buyer
shall be entitled to pursue all rights and remedies available at law or in
equity. This limitation of damages does not apply to the indemnification under
Section 17. Any breach by Seller of the Additional Agreement shall also be
deemed to be a breach of this Agreement, and Buyer shall be entitled to exercise
the rights as provided above. Buyer may seek specific performance against Seller
with respect to the Property only if Buyer simultaneously seeks specific
performance under the Additional Agreement with respect to the Additional
Property.

            (b) Buyer's Breach. If Buyer breaches this Agreement, Buyer shall
also be deemed to have breached the Additional Agreement and as Seller's sole
remedy for breach of this Agreement Seller shall be entitled to retain the
Earnest Money Deposit in accordance with subsection 5(b) as Seller's agreed and
total liquidated damages. Seller hereby waives any right to seek any equitable
or legal remedies against Buyer. This limitation of damages does not apply to
the indemnification under Sections 7(b) and 17.

      22. ATTORNEYS' FEES. If there is any litigation to enforce any provisions
or rights arising herein in accordance with Section 21, the unsuccessful party
in such litigation, as

                                       14
<PAGE>

determined by the court, agrees to pay the successful party, as determined by
the court, all costs and expenses, including, but not limited to, reasonable
attorneys' fees incurred by the successful party, such fees to be determined by
the court.

      23. NOTICES.

            (a) Addresses. Except as otherwise required by law, any notice
required or permitted hereunder shall be in writing and shall be given by
personal delivery, or by deposit in the U.S. Mail, certified or registered,
return receipt requested, postage prepaid, addressed to the Parties at the
addresses set forth below, or at such other address as a Party may designate in
writing pursuant hereto, or tested telex, or telegram, or telecopies (fax), or
any express or overnight delivery service (e.g., Federal Express), delivery
charges prepaid:

if to Seller:                         E & R Bell Road, LLC
                                      4135 E. Cotton Center Blvd.
                                      Phoenix, AZ 85040
                                      Attn: Ron Hernandez
                                      Tel.: (602) 426-5292, ext. 2209
                                      Fax:  (602) 470-2476

with copies to:                       Alan R. Costello, Esq.
                                      Costello Law Firm
                                      1440 E. Missouri Avenue, Suite C-170
                                      Phoenix, AZ 85014
                                      Tel:  (602) 248-4339
                                      Fax:  (602) 248-8164

if to Buyer:                          Series B, LLC
                                      2555 E. Camelback Road, Suite 400
                                      Phoenix, AZ  85016
                                      Attn: Legal Department
                                      Tel.: (602) 778-8700
                                      Fax:  (602) 778-8767

with copies to:                       Bennett Wheeler Lytle & Cartwright, PLC
                                      3838 N. Central Avenue, Suite 1120
                                      Phoenix, AZ  85012
                                      Attn: J. Craig Cartwright, Esq.
                                      Tel.: (602) 445-3433
                                      Fax:  (602) 266-9119

if to Escrow Agent:                   Fidelity National Title Insurance Company
                                      40 N. Central Avenue, Suite 2850
                                      Phoenix, AZ 85004
                                      Attn: Mary Garcia
                                      Tel.: (602) 343-7571
                                      Fax:  (602) 343-7564

                                       15
<PAGE>

            (b) Effective Date of Notices. Notice shall be deemed to have been
given on the date on which such notice is delivered, if notice is given by
personal delivery, telex, telegrams or telecopies, and on the date of deposit in
the mail, if mailed or deposited with the overnight carrier, if used. Notice
shall be deemed to have been received on the date on which the notice is
received, if notice is given by personal delivery, and on the second (2nd) day
following deposit in the U.S. Mail, if notice is mailed. If escrow has opened, a
copy of any notice given to a party shall also be given to Escrow Agent by
regular U.S. Mail or by any other method provided for herein.

      24. CLOSING COSTS.

            (a) Closing Costs. Seller and Buyer agree to pay closing costs as
indicated in this Agreement and in the escrow instructions attached hereto as
Exhibit G, and by this reference incorporated herein (the "Escrow
Instructions"). At COE, Seller shall pay (i) the costs of releasing all liens,
judgments, and other encumbrances that are to be released and of recording such
releases, (ii) one-half the fees and costs due Escrow Agent for its services
(the remaining one-half to be paid by Buyer), (iii) the transfer tax associated
with the sale of the Property, if any, and (iv) all other costs to be paid by
Seller under this Agreement. Except as otherwise provided for in this Agreement,
Seller and Buyer will each be solely responsible for and bear all of their own
respective expenses, including, without limitation, expenses of legal counsel,
accountants, and other advisors incurred at any time in connection with pursuing
or consummating the transaction contemplated herein. Real estate taxes shall be
prorated based upon the current valuation and latest available tax rates. All
prorations shall be calculated through escrow as of COE based upon the latest
available information, including, without limitation, a credit to Buyer for any
rent prepaid by Tenant for the period beginning with and including the date on
which the closing occurs through and including the last day of the month in
which the closing occurs. All other credits to Buyer shall be similarly
prorated. Any other closing costs not specifically designated as the
responsibility of either Party in the Escrow Instructions or in this Agreement
shall be paid by Seller and Buyer according to the usual and customary
allocation of the same by Escrow Agent. Seller agrees that all closing costs
payable by Seller shall be deducted from Seller's proceeds otherwise payable to
Seller at COE. Buyer shall deposit with Escrow Agent sufficient cash to pay all
of Buyer's closing costs. Except as provided in this Section 24(a), Seller and
Buyer shall each bear their own costs in regard to this Agreement.

            (b) Post-Closing Adjustment. If after COE, the parties discover any
errors in adjustments and apportionments or additional information becomes
available which would render the closing prorations materially inaccurate, the
same shall be corrected as soon after their discovery as possible. The provision
of this Section 24(b) shall survive COE except that no adjustment shall be made
later than two (2) months after COE unless prior to such date the Party seeking
the adjustment shall have delivered a written notice to the other Party
specifying the nature and basis for such claim. In the event that such claim is
valid, the Party against whom the claim is sought shall have ten (10) days in
which to remit any adjustment due.

            (c) Instructions. This Agreement, together with the Escrow
Instructions, shall constitute escrow instructions for the transaction
contemplated herein. Such escrow instructions shall be construed as applying
principally to Escrow Agent's employment.

                                       16
<PAGE>

      25. ESCROW CANCELLATION CHARGES. If escrow fails to close because of
Seller's default, Seller shall be liable for any cancellation charges of Escrow
Agent. If escrow fails to close because of Buyer's default, Buyer shall be
liable for any cancellation charges of Escrow Agent. If escrow fails to close
for any other reason, Seller and Buyer shall each be liable for one-half of any
cancellation charges of Escrow Agent. The provisions of this Section 25 shall
survive cancellation of this Agreement.

      26. APPROVALS. Concerning all matters in this Agreement requiring the
consent or approval of any Party, the Parties agree that any such consent or
approval shall not be unreasonably withheld unless otherwise provided in this
Agreement.

      27. RELEASES. Except as expressly provided in this Agreement, Seller and
anyone claiming through Seller hereby releases Tenant from any and all claims of
whatever kind or nature, in law or equity, whether now known or unknown to
Seller, whether contingent or matured, that Seller may now have or hereafter
acquire against Tenant for any costs, loss, liability, damage, expenses, demand,
action or cause of action arising from or related to the Existing Lease arising
from events occurring prior to COE.

      28. ADDITIONAL ACTS. The Parties agree to execute promptly such other
documents and to perform such other acts as may be reasonably necessary to carry
out the purpose and intent of this Agreement.

      29. GOVERNING LAW/JURISDICTION/VENUE. This Agreement shall be governed by
and construed or enforced in accordance with the laws of the State of Arizona.
In regard to any litigation which may arise in regard to this Agreement, the
Parties shall and do hereby submit to the jurisdiction of and the Parties hereby
agree that the proper venue shall be in the Superior Court of Arizona in
Maricopa County, Arizona.

      30. CONSTRUCTION. The terms and provisions of this Agreement represent the
results of negotiations among the Parties, each of which has been represented by
counsel of its own choosing, and neither of which has acted under any duress or
compulsion, whether legal, economic or otherwise. Consequently, the terms and
provisions of this Agreement shall be interpreted and construed in accordance
with their usual and customary meanings, and the Parties each hereby waive the
application of any rule of law which would otherwise be applicable in connection
with the interpretation and construction of this Agreement that ambiguous or
conflicting terms or provisions contained in this Agreement shall be interpreted
or construed against the Party whose attorney prepared the executed Agreement or
any earlier draft of the same.

      31. TIME OF ESSENCE. Time is of the essence of this Agreement. However, if
this Agreement requires any act to be done or action to be taken on a date which
is a Saturday, Sunday or legal holiday, such act or action shall be deemed to
have been validly done or taken if done or taken on the next succeeding day
which is not a Saturday, Sunday or legal holiday, and the successive periods
shall be deemed extended accordingly.

      32. INTERPRETATION. If there is any specific and direct conflict between,
or any ambiguity resulting from, the terms and

                                       17
<PAGE>

provisions of this Agreement and the terms and provisions of any document,
instrument or other agreement executed in connection herewith or in furtherance
hereof, including any Exhibits hereto, the same shall be consistently
interpreted in such manner as to give effect to the general purposes and
intention as expressed in this Agreement which shall be deemed to prevail and
control.

      33. HEADINGS. The headings of this Agreement are for reference only and
shall not limit or define the meaning of any provision of this Agreement.

      34. FAX AND COUNTERPARTS. This Agreement may be executed by facsimile
and/or in any number of counterparts. Each party may rely upon any facsimile or
counterpart copy as if it were one original document.

      35. INCORPORATION OF EXHIBITS BY REFERENCE. All Exhibits to this Agreement
are fully incorporated herein as though set forth at length herein.

      36. SEVERABILITY. If any provision of this Agreement is unenforceable, the
remaining provisions shall nevertheless be kept in effect.

      37. ENTIRE AGREEMENT. This Agreement contains the entire agreement between
the Parties and supersedes all prior agreements, oral or written, with respect
to the subject matter hereof. The provisions of this Agreement shall be
construed as a whole and not strictly for or against any Party.

      38. SEC S-X 3-14 Audit. Seller acknowledges that Buyer may elect to assign
all of its right, title and interest in and to this Agreement to a publicly
registered company ("Registered Company") promoted by the Buyer. In the event
Buyer's assignee under this Agreement is a Registered Company, such Registered
Company will be required to make certain filings with the U.S. Securities and
Exchange Commission required under SEC Rule S-X 3-14 (the "SEC Filings") that
relate to the most recent pre-acquisition fiscal year (the "Audited Year") for
the Property. To assist the Registered Company with the preparation of the SEC
Filings, Seller agrees to provide Buyer with financial information regarding the
Property for the Audited Year requested by Buyer and/or Buyer's auditors. Such
information may include, but is not limited to, bank statements, operating
statements, general ledgers, cash receipts schedules, invoices for expenses and
capital improvements, insurance documentation, and accounts receivable aging
related to the Property, provided such information is in the possession or
control of Seller or its affiliates ("SEC Filing Information"). Seller shall
deliver the SEC Filing Information requested by Buyer prior to the expiration of
the Study Period, and Seller agrees to cooperate with Buyer and Buyer's auditors
regarding any inquiries by Buyer or Buyer's auditors following receipt of such
information, including delivery by Seller of an executed representation letter
prior to COE in form and substance requested by Buyer's auditors ("SEC Filings
Letter"). A sample SEC Filings Letter is attached to the Purchase Agreement as
Exhibit G; however, Buyer's auditors may require additions and/or revisions to
such letter following review of the SEC Filing Information provided by Seller.
Seller consents to the disclosure of the SEC Filing Information in any SEC
Filings by the Registered Company. Buyer shall reimburse Seller for Seller's
reasonable costs associated with providing the SEC Filing Information. The
provisions of this Section 38 shall survive the COE for a period of one (1)
year.

                                       18
<PAGE>

      39. TAX-FREE EXCHANGE. The parties acknowledge that one or both of the
parties may be entering into this transaction as part of an IRC Section 1031 Tax
Deferred Exchange (an "Exchange") for the benefit of such party or parties. Each
party agrees to assist and cooperate in any such Exchange for the benefit of the
other provided the cooperating party shall incur no liability, cost or expense
and will execute any and all documents, subject to its reasonable approval of
its counsel, as are reasonably necessary in connection with the Exchange.

      IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of
the Effective Date.

SELLER:                                   E & R BELL ROAD, LLC

                                          By: /s/ Ronald Hernandez
                                              ---------------------
                                               Ronald Hernandez
                                          Its: Manager/Member

BUYER:                                    SERIES B, LLC

                                          By: /S/ John M. Pons
                                              ------------------------
                                               John M. Pons
                                          Its: Authorized Officer

                            ACKNOWLEDGEMENT OF TENANT

      The undersigned hereby acknowledges and agrees that it will execute and
deliver to Buyer at COE, as lessee thereunder, the New Lease and all other
documents contemplated thereby and reasonably required by Escrow Agent, Seller
and/or Buyer.

                                          EBCO, INC.

                                          By: /S/ Ronald Hernandez
                                              ------------------------
                                              Ronald Hernandez
                                          Its: Vice President & C.F.O.

                                       19
<PAGE>

                            ESCROW AGENT'S ACCEPTANCE

      The foregoing fully executed Agreement together with the Earnest Money
Deposit is accepted by the undersigned this _____ day of ____________, 20__,
which for the purposes of this Agreement shall be deemed to be the date of
Opening of Escrow. Escrow Agent hereby accepts the engagement to handle the
escrow established by this Agreement in accordance with the terms set forth in
this Agreement.

                                          FIDELITY NATIONAL TITLE INSURANCE
                                          COMPANY

                                          By: /S/ M. Burton
                                              -----------------
                                          Title: Asst. Commercial Escrow Officer

                                       20<PAGE>

                                                                    EXHIBIT 10.7

                                                               LA-Z BOY GLENDALE
                                                             LOAN NO. 50-2853609

                                 PROMISSORY NOTE

$4,553,000.00                                                   October 25, 2005

      FOR VALUE RECEIVED, the undersigned, COLE LZ GLENDALE AZ, LLC, a Delaware
limited liability company ("Maker"), having an address at 2555 East Camelback
Road, Suite 400, Phoenix, Arizona 85016, promises to pay to the order of
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association ("Payee"),
at the office of Payee at Commercial Real Estate Services, 8739 Research Drive
URP - 4, NC 1075, Charlotte, North Carolina 28262, or at such other place as
Payee may designate to Maker in writing from time to time, the principal sum of
FOUR MILLION FIVE HUNDRED FIFTY-THREE THOUSAND AND NO/100 DOLLARS
($4,553,000.00), together with interest on so much thereof as is from time to
time outstanding and unpaid, from the date of the advance of the principal
evidenced hereby and as allocated to Fixed Rate Tranche A and Floating Rate
Tranche B (as each term is hereinafter defined) for each such tranche, at the
Note Rate (as hereinafter defined), together with all other amounts due
hereunder or under the other Loan Documents (as defined herein), in lawful money
of the United States of America, which shall at the time of payment be legal
tender in payment of all debts and dues, public and private.

                        ARTICLE I -- TERMS AND CONDITIONS

      1.1 Definitions. The following terms, as used in this Note, shall have the
following meanings, which meanings shall be applicable equally to the singular
and the plural of the terms defined:

            (a) "Business Day" shall mean a day of the year on which banks are
not required or authorized to close in Charlotte, North Carolina.

            (b) "Determination Date" shall mean a date on which the LIBOR-Based
Rate shall be selected as the applicable interest rate in respect of Floating
Rate Tranche B, which date shall be the day that is two (2) London Business Days
prior to the commencement of an Interest Period or, with respect to the first
Interest Period, the date the Loan shall be advanced by Payee.

            (c) "Extended Maturity Date" shall mean November 11, 2030.

            (d) "Fixed Rate Tranche A" shall mean Three Million Four Hundred
Fifteen Thousand and No/100 Dollars ($3,415,000.00) of the aggregate amount of
the Loan which shall bear interest as set forth in Section 1.3 hereof.

            (e) "Floating Rate Tranche B" shall mean One Million One Hundred
Thirty-Eight Thousand and No/100 Dollars ($1,138,000.00) of the aggregate amount
of the Loan which shall bear interest at the LIBOR-Based Rate (as hereinafter
defined).

            (f) "Interest Period" shall mean initially, the period commencing on
the date hereof and ending on and including the day of the tenth (10th) day of
the calendar month

<PAGE>

following the date of this Note, unless principal is advanced on the tenth
(10th) of a month, in which case the first Interest Period shall consist only
such tenth (10th) day. Each Interest Period thereafter shall commence on the
eleventh (11th) day of each calendar month during the term of this Note and
shall end on and include the tenth (10th) day of the next occurring calendar
month. Interest shall accrue from the date on which funds are advanced hereunder
(regardless of the time of day) through and including the day on which funds are
credited pursuant to Section 1.4 hereof.

            (g) "LIBOR-Based Rate" shall mean (i) for the first Interest Period,
an interest rate per annum equal to ______________________________ percent
(______%) and (ii) for each succeeding Interest Period until Floating Rate
Tranche B is satisfied, an interest rate per annum equal at all times to two
hundred (200) basis points above the one-month LIBOR, in each case as determined
by Payee prior to the commencement of each Interest Period.

            (h) "LIBOR" shall mean with respect to each day during each Interest
Period, the rate for U.S. dollar deposits of that many months maturity as
reported on Telerate page 3750 as of 11:00 a.m., London time, on the second
London Business Day before the relevant Interest Period begins (or if not so
reported, then as determined by Payee from another recognized source or
interbank quotation), rounded up to the nearest one-eighth of one percent
(1/8%).

            (i) "Loan" shall mean that certain loan made by Payee to Maker in
respect of the Property which is evidenced by this Note and secured by, among
other things, the Security Instrument and all other Loan Documents.

            (j) "Loan Documents" shall mean the Security Instrument, this Note
and all other documents now or hereafter evidencing, securing, guarantying,
modifying or otherwise relating to the indebtedness evidenced hereby.

            (k) "London Business Day" shall mean a day of the year on which
dealings in United States dollars are carried on in the London interbank market
and banks are not required or authorized to close in London or in New York, New
York.

            (l) "Maturity Date" shall mean November 11, 2010.

            (m) "Monthly Payment Amount" shall mean the sum of (A) from and
including the First Payment Date through the Maturity Date, an amount equal to
the interest payable under this Note on the portion allocated as Fixed Rate
Tranche A at the Fixed Interest Rate in the amounts for each such Payment Date
set forth on Annex 1 attached hereto and incorporated herein by this reference
or as provided by Payee to Maker in connection with the initial Fixed Interest
Rate Interest Period, plus (B) through and until Floating Rate Tranche B is
satisfied, an amount equal to the interest payable under this Note on the
portion allocated as Floating Rate Tranche B at the LIBOR-Based Rate pursuant to
the provisions of Section 1.2 hereof. Annex 1 is for reference purposes only and
any payment incorrectly referenced thereon or omitted therefrom shall not limit
or reduce Maker's obligations for actual amounts due under this Note in
accordance with its payment terms, and Maker agrees that Payee may substitute a
replacement Annex 1 in the event the attached does not accurately reflect
Maker's scheduled payment obligations.

            (n) "Optional Prepayment Date" shall mean November 11, 2010.

<PAGE>

            (o) "Optional Prepayment Determination Date" shall mean September
11, 2010.

            (p) "Security Instrument" shall mean that certain mortgage, deed of
trust or deed to secure debt and security agreement from Maker for the benefit
of Payee, dated of even date herewith, covering property located in Maricopa
County, Arizona.

      Each of the capitalized terms not otherwise defined in this Note shall
have the respective meaning ascribed to it in the Security Instrument of even
date herewith from Maker to Payee.

      1.2 LIBOR-Based Rate; Pay-Down Date. (a) From the date of the advance of
the principal evidenced hereby through the Pay-Down Date (as hereinafter
defined) for Floating Rate Tranche B, Floating Rate Tranche B shall bear
interest at the LIBOR-Based Rate. The LIBOR-Based Rate shall remain in effect,
subject to the provisions hereof, from and including the first day of the
Interest Period to and excluding the last day of the Interest Period for which
it is determined.

            (b) If requested by Payee, Maker shall immediately confirm the
LIBOR-Based Rate and the duration of the applicable Interest Period by
acknowledging receipt of a written confirmation of the LIBOR-Based Rate and
Interest Period delivered by Payee to Maker. Only one Interest Period may be in
effect at any given time.

            (c) Without limiting the effect of any other provision of this Note,
Maker shall pay to Payee on the last day of each and every Interest Period, so
long as and to the extent that Payee (or its source of funds) may directly or
indirectly be required to maintain reserves against "Eurocurrency liabilities"
under Federal Reserve Regulation D (as at any time amended), additional interest
(as determined by Payee and disclosed to Maker) for each such Interest Period at
an interest rate per annum equal, at all times during such Interest Period for
the principal balance of Floating Rate Tranche B, to the excess of (i) the rate
obtained by dividing LIBOR for such Interest Period by a percentage equal to
100% minus the reserve percentage applicable during such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or if more than one such percentage is so applicable, minus the
daily average of such percentages for those days in such Interest Period during
which any such percentage shall be so applicable) for determining the maximum
reserve requirement (including, without limitation, any marginal reserve
requirement) for Payee (or its source of funds) in respect of liabilities or
assets consisting of or including "Eurocurrency liabilities" under Federal
Reserve Regulation D (as at any time amended) having a term equal to such
Interest Period over (ii) LIBOR for such Interest Period. Terms used in
Regulation D shall have the same meanings when used herein. Each such
determination made by Payee and each such notification by Payee to Maker under
this subparagraph of the amount of additional interest payable hereunder shall
be conclusive as to the matters set forth therein.

            (d) In addition to the payment of interest and fees as aforesaid,
Maker shall, from time to time, upon demand by Payee pay to Payee amounts as
shall be sufficient to compensate Payee for (i) any loss, cost, fee, breakage or
other expense incurred or sustained directly or indirectly by reason of the
liquidation or reemployment of deposits or other funds acquired by Payee to fund
or maintain Floating Rate Tranche B during any Interest Period as a

<PAGE>

result of any prepayment of Floating Rate Tranche B or any portion thereof or
any attempt by Maker to rescind the selection of the LIBOR-Based Rate as the
applicable interest rate for Floating Rate Tranche B and (ii) any increased
costs incurred by Payee, by reason of:

            (x) taxes (or the withholding of amounts for taxes) of any nature
      whatsoever, including, without limitation, income, excise and interest
      equalization taxes (other than United States or state income taxes) as
      well as all levies, imports, duties, or fees whether now in existence or
      as the result of a change in, or promulgation of, any treaty, statute or
      regulation or interpretation thereof, or any directive, guideline or
      otherwise, by a central bank or fiscal authority or any other entity
      (whether or not having the force of law) or a change in the basis of, or
      time of payment of, such taxes and other amounts resulting therefrom;

            (y) any reserve or special deposit requirements against or with
      respect to assets or liabilities or deposits outstanding under LIBOR
      (including, without limitation, those imposed under the Monetary Control
      Act of 1978) currently required by, or resulting from a change in, or the
      promulgation of, such requirements by treaty, statute, regulation,
      interpretation thereof, or any directive, guidelines, or otherwise by a
      central bank or fiscal authority (whether or not having the force of law);
      and

            (z) any other costs resulting from compliance with treaties,
      statutes, regulations, interpretations or any directives or guidelines or
      otherwise, promulgated by or of a central bank or fiscal authority or
      other entity with similar authority (whether or not having the force of
      law).

A certificate as to the amount of any such costs prepared by Payee, signed by an
authorized officer of Payee and submitted to Maker shall be conclusive as to the
matters therein set forth.

      (e) The selection at any time of an interest rate based upon LIBOR shall
be expressly conditioned upon the existence of an adequate and fair means of
determining LIBOR and the absence of any legal prohibition against the charging
of interest based on LIBOR.

      (f) On or prior to January 25, 2006 (the "Pay-Down Date"), Maker shall
fully prepay the principal balance of this Note allocated as Floating Rate
Tranche B. Floating Rate Tranche B shall not be deemed to have been paid and/or
satisfied in full until all such additional costs, in addition to the principal
balance thereof and all interest thereon and all other sums due and payable
under the Loan Documents in regards to Floating Rate Tranche B, shall have been
paid.

      1.3 Note Rate; Computation of Interest. The term "Note Rate" as used in
this Note shall mean (a) for Fixed Rate Tranche A, from the date of this Note
through but not including the Optional Prepayment Date, a rate per annum equal
to ____________________ percent (____%) (the "Fixed Interest Rate"), (b) for
Floating Rate Tranche B, from the date of this Note through the Pay-Down Date
and satisfaction of Floating Rate Tranche B, a rate per annum equal to the
LIBOR-Based Rate, and (c) from the Optional Prepayment Date through and
including the date this Note is paid in full, a rate per annum equal to the
greater of (i) the Fixed Interest Rate plus two (2%) percent or (ii) the
Treasury Constant Maturity Yield Index (as hereinafter defined) plus two (2%)
percent ((i) or (ii), as applicable, the "Revised Interest Rate"). Interest
shall be

<PAGE>

computed hereunder based on a 360-day year and based on the actual number of
days elapsed for any period in which interest is being calculated. For purposes
of this Section 1.3, the term "Treasury Constant Maturity Yield Index" shall
mean the average yield for "This Week" as reported by the Federal Reserve Board
in Federal Statistical Release H.15 (519) published during the second full week
preceding the Optional Prepayment Date for instruments having a maturity
coterminous with the remaining term of this Note. If there is no Treasury
Constant Maturity Yield Index for instruments having a maturity coterminous with
the remaining term of this Note, then the index shall be equal to the weighted
average yield to maturity of the Treasury Constant Maturity Yield Indices with
maturities next longer and shorter than such remaining average life to maturity,
calculated by averaging (and rounding upward to the nearest whole multiple of
1/100 of 1% per annum, if the average is not such a multiple) the yields of the
relevant Treasury Constant Maturity Yield Indices (rounded, if necessary, to the
nearest 1/100 of 1% with any figure of 1/200 of 1% or above rounded upward). If
such Release is not available or no longer published, Payee may refer to another
recognized source of financial market information.

      1.4 Payment of Principal and Interest. Payments in federal funds
immediately available at the place designated for payment received by Payee
prior to 2:00 p.m. local time on a day on which Payee is open for business at
said place of payment shall be credited prior to close of business, while other
payments, at the option of Payee, may not be credited until immediately
available to Payee in federal funds at the place designated for payment prior to
2:00 p.m. local time on a day on which Payee is open for business. Interest only
shall be payable in consecutive monthly installments of the Monthly Payment
Amount, beginning on December 11, 2005 (the "First Payment Date"), and
continuing on the eleventh (11th) day of each and every calendar month
thereafter (each, a "Payment Date"). On the Maturity Date or the Optional
Prepayment Date, the entire outstanding principal balance hereof, together with
all accrued but unpaid interest thereon, shall be due and payable in full
provided, however, that in the event that such amounts are not paid on such
date, the Maturity Date shall be extended to the Extended Maturity Date. In
computing the number of days during which interest accrues, the day on which
funds are initially advanced shall be included regardless of the time of day
such advance is made, and the day on which funds are repaid shall be included
unless repayment is credited prior to close of business. Payments in federal
funds immediately available in the place designated for payment received by
Payee prior to 2:00 p.m. local time on a Business Day at said place of payment
shall be credited prior to close of business, while other payments, at the
option of Payee, may not be credited until immediately available to Payee in
federal funds in the place designated for payment prior to 2:00 p.m. local time
at said place of payment on a Business Day.

      1.5 Application of Payments. So long as no Event of Default (as
hereinafter defined) exists hereunder or under any other Loan Document, each
such monthly installment shall be applied, prior to the Optional Prepayment
Date, first, to any amounts hereafter advanced by Payee hereunder or under any
other Loan Document, second, to any late fees and other amounts payable to
Payee, third, to the payment of accrued interest and last to reduction of
principal, and from and after the Optional Prepayment Date, as provided in
Section 2.2 of this Note.

      1.6 Payment of "Short Interest". If the advance of the principal amount
evidenced by this Note is made on a date on or after the first (1st) day of a
calendar month and prior to the eleventh (11th) day of a calendar month, Maker
shall pay to Payee contemporaneously with the

<PAGE>

execution hereof interest at the Note Rate for a period from the date hereof
through and including the tenth (10th) day of this calendar month. If the
advance of the principal amount evidenced by this Note is made on a date after
the eleventh (11th) day of a calendar month and prior to or on the last day of a
calendar month, Maker shall pay to Payee contemporaneously with the execution
hereof interest at the Note Rate for a period from the date hereof through and
including the tenth (10th) day of the immediately succeeding calendar month.

      1.7 Prepayment; Defeasance.

      (a) This Note may not be prepaid, in whole or in part (except as otherwise
specifically provided herein), at any time prior to the Optional Prepayment
Date. In the event that Maker wishes to have the Security Property (as
hereinafter defined) released from the lien of the Security Instrument prior to
the Optional Prepayment Date, Maker's sole option shall be a Defeasance (as
hereinafter defined) upon satisfaction of the terms and conditions set forth in
Section 1.7(d) hereof. This Note may be prepaid in whole but not in part without
premium or penalty on any of the three (3) Payment Dates occurring immediately
prior to the Maturity Date provided (i) written notice of such prepayment is
received by Payee not more than ninety (90) days and not less than thirty (30)
days prior to the date of such prepayment, and (ii) such prepayment is
accompanied by all interest accrued hereunder through and including the date of
such prepayment and all other sums due hereunder or under the other Loan
Documents. If, upon any such permitted prepayment on any of the three (3)
Payment Dates occurring immediately prior to the Maturity Date, the aforesaid
prior written notice has not been timely received by Payee, there shall be due a
prepayment fee equal to, an amount equal to the lesser of (i) thirty (30) days'
interest computed at the Note Rate on the outstanding principal balance of this
Note so prepaid and (ii) interest computed at the Note Rate on the outstanding
principal balance of this Note so prepaid that would have been payable for the
period from, and including, the date of prepayment through the Maturity Date of
this Note as though such prepayment had not occurred.

      (b) If, prior to the fourth (4th) anniversary of the First Payment Date
(the "Lock-out Expiration Date"), the indebtedness evidenced by this Note shall
have been declared due and payable by Payee pursuant to Article III hereof or
the provisions of any other Loan Document due to a default by Maker, then, in
addition to the indebtedness evidenced by this Note being immediately due and
payable, there shall also then be immediately due and payable a sum equal to the
interest which would have accrued on the principal balance of this Note at the
Note Rate from the date of such acceleration to the Lock-out Expiration Date,
together with a prepayment fee in an amount equal to the Yield Maintenance
Premium (as hereinafter defined) based on the entire indebtedness on the date of
such acceleration. If such acceleration is on or following the Lock-out
Expiration Date, the Yield Maintenance Premium shall also then be immediately
due and payable as though Maker were prepaying the entire indebtedness on the
date of such acceleration. In addition to the amounts described in the two
preceding sentences, in the event of any such acceleration or tender of payment
of such indebtedness occurs or is made on or prior to the first (1st)
anniversary of the date of this Note, there shall also then be immediately due
and payable an additional prepayment fee of three percent (3%) of the principal
balance of this Note. The term "Yield Maintenance Premium" shall mean an amount
equal to the greater of (A) two percent (2.0%) of the principal amount being
prepaid, and (B) the present value of a series of

<PAGE>

payments each equal to the Payment Differential (as hereinafter defined) and
payable on each Payment Date over the remaining original term of this Note and
on the Maturity Date, discounted at the Reinvestment Yield (as hereinafter
defined) for the number of months remaining as of the date of such prepayment to
each such Payment Date and the Maturity Date. The term "Payment Differential"
shall mean an amount equal to (i) the Note Rate less the Reinvestment Yield,
divided by (ii) twelve (12) and multiplied by (iii) the principal sum
outstanding under this Note after application of the constant monthly payment
due under this Note on the date of such prepayment, provided that the Payment
Differential shall in no event be less than zero. The term "Reinvestment Yield"
shall mean an amount equal to the lesser of (i) the yield on the U.S. Treasury
issue (primary issue) with a maturity date closest to the Maturity Date, or (ii)
the yield on the U.S. Treasury issue (primary issue) with a term equal to the
remaining average life of the indebtedness evidenced by this Note, with each
such yield being based on the bid price for such issue as published in the Wall
Street Journal on the date that is fourteen (14) days prior to the date of such
prepayment set forth in the notice of prepayment (or, if such bid price is not
published on that date, the next preceding date on which such bid price is so
published) and converted to a monthly compounded nominal yield. In the event
that any prepayment fee is due hereunder, Payee shall deliver to Maker a
statement setting forth the amount and determination of the prepayment fee, and,
provided that Payee shall have in good faith applied the formula described
above, Maker shall not have the right to challenge the calculation or the method
of calculation set forth in any such statement in the absence of manifest error,
which calculation may be made by Payee on any day during the fifteen (15) day
period preceding the date of such prepayment. Payee shall not be obligated or
required to have actually reinvested the prepaid principal balance at the
Reinvestment Yield or otherwise as a condition to receiving the prepayment fee.

            (c) Partial prepayments of this Note shall not be permitted,
except for (i) partial prepayments resulting from Payee's election to apply
insurance or condemnation proceeds to reduce the outstanding principal balance
of this Note as provided in the Security Instrument, in which event no
prepayment fee or premium shall be due unless, at the time of either Payee's
receipt of such proceeds or the application of such proceeds to the outstanding
principal balance of this Note, an Event of Default shall have occurred, which
Event of Default is unrelated to the applicable casualty or condemnation, in
which event the applicable prepayment fee or premium shall be due and payable
based upon the amount of the prepayment or (ii) any partial prepayment required
on or prior to the Pay-Down Date pursuant to Section 1.2(f) above, in which
event no prepayment fee or premium shall be due. No notice of prepayment shall
be required under the circumstances specified in subclause (i) of the preceding
sentence. No principal amount repaid may be reborrowed. Any such partial
prepayments of principal under subclause (i) above shall be applied to the
unpaid principal balance evidenced hereby but such application shall not reduce
the amount of the fixed monthly installments required to be paid pursuant to
Section 1.4 above. Except as otherwise expressly provided herein, the prepayment
fees provided above shall be due, to the extent permitted by applicable law,
under any and all circumstances where all or any portion of this Note is paid
prior to the Maturity Date, whether such prepayment is voluntary or involuntary,
including, without limitation, if such prepayment results from Payee's exercise
of its rights upon Maker's default and acceleration of the Maturity Date of this
Note (irrespective of whether foreclosure proceedings have been commenced), and
shall be in addition to any other sums due hereunder or under any of the other
Loan Documents. No tender of a prepayment of this Note

<PAGE>

with respect to which a prepayment fee is due shall be effective unless such
prepayment is accompanied by the applicable prepayment fee.

      (d) (i) On any Payment Date on or after the later to occur of (x) the
      Lock-out Expiration Date, and (y) the day immediately following the date
      which is two (2) years after the "startup day," within the meaning of
      Section 860G(a)(9) of the Internal Revenue Code of 1986, as amended from
      time to time or any successor statute (the "Code"), of a "real estate
      mortgage investment conduit," within the meaning of Section 860D of the
      Code, that holds this Note, and provided no Event of Default has occurred
      hereunder or under any of the other Loan Documents, at Maker's option,
      Payee shall cause the release of the Security Property from the lien of
      the Security Instrument and the other Loan Documents (a "Defeasance") upon
      the satisfaction of the following conditions:

                  (A) Maker shall give not more than ninety (90) days' or less
          than sixty (60) days' prior written notice to Payee specifying the
          date Maker intends for the Defeasance to be consummated (the "Release
          Date"), which date shall be a Payment Date.

                  (B) All accrued and unpaid interest and all other sums due
          under this Note and under the other Loan Documents up to and including
          the Release Date shall be paid in full on or prior to the Release
          Date.

                  (C) Maker shall deliver to Payee on or prior to the Release
          Date:

                  (1) a sum of money in immediately available funds (the
              "Defeasance Deposit"), equal to the outstanding principal balance
              of this Note plus an amount, if any, which together with the
              outstanding principal balance of this Note, shall be sufficient to
              enable Payee to purchase, through means and sources customarily
              employed and available to Payee, for the account of Maker, direct,
              non-callable obligations of the United States of America that
              provide for payments prior, but as close as possible, to all
              successive monthly Payment Dates occurring after the Release Date
              and to the Maturity Date, with each such payment being equal to or
              greater than the amount of the corresponding installment of
              principal and/or interest required to be paid under this Note
              (including, but not limited to, all amounts due on the Maturity
              Date) for the balance of the term hereof (the "Defeasance
              Collateral"), each of which shall be duly endorsed by the holder
              thereof as directed by Payee or accompanied by a written
              instrument of transfer in form and substance satisfactory to Payee
              in its sole discretion (including, without limitation, such
              instruments as may be required by the depository institution
              holding such securities or the issuer thereof, as the case may be,
              to effectuate book-entry transfers and pledges through the
              book-entry facilities of such institution) in order to perfect
              upon the delivery of the Defeasance Security Agreement (as
              hereinafter defined) the first priority security interest in the
              Defeasance Collateral in

<PAGE>

              favor of Payee in conformity with all applicable state and federal
              laws governing granting of such security interests;

                  (2) a pledge and security agreement, in form and substance
              satisfactory to a prudent lender, creating a first priority
              security interest in favor of Payee in the Defeasance Collateral
              (the "Defeasance Security Agreement"), which shall provide, among
              other things, that any excess received by Payee from the
              Defeasance Collateral over the amounts payable by Maker hereunder
              shall be refunded to Maker promptly after each monthly Payment
              Date;

                  (3) a certificate of Maker certifying that all of the
              requirements set forth in this Section 1.7(d)(i) have been
              satisfied;

                  (4) one or more opinions of counsel for Maker in form and
              substance and delivered by counsel which would be satisfactory to
              a prudent lender stating, among other things, that (i) Payee has a
              perfected first priority security interest in the Defeasance
              Collateral and that the Defeasance Security Agreement is
              enforceable against Maker in accordance with its terms, (ii) in
              the event of a bankruptcy proceeding or similar occurrence with
              respect to Maker, none of the Defeasance Collateral nor any
              proceeds thereof will be property of Maker's estate under Section
              541 of the U.S. Bankruptcy Code or any similar statute and the
              grant of security interest therein to Payee shall not constitute
              an avoidable preference under Section 547 of the U.S. Bankruptcy
              Code or applicable state law, (iii) the release of the lien of the
              Security Instrument and the pledge of Defeasance Collateral will
              not directly or indirectly result in or cause any REMIC Trust that
              then holds this Note to fail to maintain its status as a REMIC
              Trust and (iv) the defeasance will not cause any REMIC Trust to be
              an "investment company" under the Investment Company Act of 1940;

                  (5) evidence in writing from the applicable rating agencies to
              the effect that the collateral substitution will not result in a
              downgrading, withdrawal or qualification of the respective ratings
              in effect immediately prior to such defeasance event for any
              securities issued in connection with the securitization which are
              then outstanding;

                  (6) a certificate in form and scope acceptable to Payee in its
              sole discretion from an acceptable accountant certifying that the
              Defeasance Collateral will generate amounts sufficient to make all
              payments of principal and interest due under this Note (including
              the scheduled outstanding principal balance of the Loan due on the
              Maturity Date);

                  (7) Maker and any guarantor or indemnitor of Maker's
              obligations under the Loan Documents for which Maker has personal

<PAGE>

              liability executes and delivers to Payee such documents and
              agreements as Payee shall reasonably require to evidence and
              effectuate the ratification of such personal liability and
              guaranty or indemnity, respectively;

                  (8) such other certificates, documents or instruments as Payee
              may reasonably require;

                  (9) payment of all fees, costs, expenses and charges incurred
              by Payee in connection with the Defeasance of the Security
              Property and the purchase of the Defeasance Collateral, including,
              without limitation, all legal fees and costs and expenses incurred
              by Payee or its agents in connection with release of the Security
              Property, review of the proposed Defeasance Collateral and
              preparation of the Defeasance Security Agreement and related
              documentation, any revenue, documentary, stamp, intangible or
              other taxes, charges or fees due in connection with transfer of
              the Note, assumption of the Note, or substitution of collateral
              for the Security Property shall be paid on or before the Release
              Date. Without limiting Maker's obligations with respect thereto,
              Payee shall be entitled to deduct all such fees, costs, expenses
              and charges from the Defeasance Deposit to the extent of any
              portion of the Defeasance Deposit which exceeds the amount
              necessary to purchase the Defeasance Collateral; and

                  (10) in the event the Amendment (as defined in Section 4.35 of
              the Security Instrument) has been executed, evidence satisfactory
              to Payee that following the Defeasance of this Loan, the minimum
              debt service coverage ratio for each of the Additional Loans (as
              defined in Section 4.35 of the Security Instrument) shall be 1.75
              to 1.00 and the maximum loan to value percentage for each of the
              Additional Loans shall be 65%.

                  (D) In connection with the Defeasance Deposit, Maker hereby
          authorizes and directs Payee using the means and sources customarily
          employed and available to Payee to use the Defeasance Deposit to
          purchase for the account of Maker the Defeasance Collateral.
          Furthermore, the Defeasance Collateral shall be arranged such that
          payments received from such Defeasance Collateral shall be paid
          directly to Payee to be applied on account of the indebtedness of this
          Note. Any part of the Defeasance Deposit in excess of the amount
          necessary to purchase the Defeasance Collateral and to pay the other
          and related costs Maker is obligated to pay under this Section 1.7
          shall be refunded to Maker.

          (ii) Upon compliance with the requirements of Section 1.7(d)(i), the
      Security Property shall be released from the lien of the Security
      Instrument and the other Loan Documents, and the Defeasance Collateral
      shall constitute collateral which shall secure this Note and all other
      obligations under the Loan Documents. Payee will, at Maker's expense,
      execute and deliver any agreements reasonably requested by Maker to
      release the lien of the Security Instrument from the Security Property.

<PAGE>

          (iii) Upon the release of the Security Property in accordance with
      this Section 1.7(d), Maker shall assign all its obligations and rights
      under this Note, together with the pledged Defeasance Collateral, to a
      newly created successor entity which complies with the terms of Section
      1.33 of the Security Instrument designated by Maker and approved by Payee
      in its sole discretion. Such successor entity shall execute an assumption
      agreement in form and substance satisfactory to Payee in its sole
      discretion pursuant to which it shall assume Maker's obligations under
      this Note and the Defeasance Security Agreement. As conditions to such
      assignment and assumption, Maker shall (x) deliver to Payee an opinion of
      counsel in form and substance and delivered by counsel satisfactory to a
      prudent lender stating, among other things, that such assumption agreement
      is enforceable against Maker and such successor entity in accordance with
      its terms and that this Note and the Defeasance Security Agreement, as so
      assumed, are enforceable against such successor entity in accordance with
      their respective terms, and (y) pay all costs and expenses (including, but
      not limited to, legal fees) incurred by Payee or its agents in connection
      with such assignment and assumption (including, without limitation, the
      review of the proposed transferee and the preparation of the assumption
      agreement and related documentation). Upon such assumption, Maker shall be
      relieved of its obligations hereunder, under the other Loan Documents
      other than as specified in Section 1.7(d)(i)(C)(7) above and under the
      Defeasance Security Agreement.

      1.8 Security. The indebtedness evidenced by this Note and the obligations
created hereby are secured by, among other things, the Security Instrument. All
of the terms and provisions of the Loan Documents are incorporated herein by
reference. Some of the Loan Documents are to be filed for record on or about the
date hereof in the appropriate public records.

                ARTICLE II -- OPTIONAL PREPAYMENT DATE PROVISIONS

      2.1 Optional Prepayment Determination Date. The following subsections
shall apply from and after the Optional Prepayment Determination Date:

      (a) [Reserved].

      (b) For the calendar year in which the Optional Prepayment Determination
Date occurs and for each calendar year thereafter, Maker shall submit to Payee
for Payee's written approval an annual budget (an "Annual Budget") not later
than (i) the Optional Prepayment Determination Date for the calendar year in
which the Optional Prepayment Determination occurs and (ii) sixty (60) days
prior to the commencement of each calendar year thereafter, in form satisfactory
to Payee setting forth in reasonable detail budgeted monthly operating income
and monthly operating capital and other expenses for the Mortgaged Property.
Each Annual Budget shall contain, among other things, limitations on management
fees, third party service fees and other expenses as Maker may reasonably
determine. Payee shall have the right to approve such Annual Budget and in the
event that Payee objects to the proposed Annual Budget submitted by Maker, Payee
shall advise Maker of such objections within fifteen (15) days after receipt

<PAGE>

thereof (and deliver to Maker a reasonably detailed description of such
objections) and Maker shall, within three (3) days after receipt of notice of
any such objections, revise such Annual Budget and resubmit the same to Payee.
Payee shall advise Maker of any objections to such revised Annual Budget within
ten (10) days after receipt thereof (and deliver to Maker a reasonably detailed
description of such objections) and Maker shall revise the same in accordance
with the process described in this subsection until Payee approves an Annual
Budget, provided, however, that if Payee shall not advise Maker of its
objections to any proposed Annual Budget within the applicable time period set
forth in this subsection, then such proposed Annual Budget shall be deemed
approved by Payee. Each such Annual Budget approved by Payee in accordance with
terms hereof shall hereinafter be referred to as an "Approved Annual Budget."
Until such time that Payee approves a proposed Annual Budget, the most recently
Approved Annual Budget shall apply; provided, that such Approved Annual Budget
shall be adjusted to reflect actual increases in real estate taxes, insurance
premiums and utilities expenses.

      (c) In the event that Maker must incur an extraordinary operating expense
or capital expense not set forth in the Annual Budget (an "Extraordinary
Expense"), then Maker shall promptly deliver to Payee a reasonably detailed
explanation of such proposed Extraordinary Expense for Payee's approval.

      (d) For the purposes of this Note, "Cash Expenses" shall mean, for any
period, the operating expenses for the operation and maintenance of the
Mortgaged Property as set forth in an Approved Annual Budget to the extent that
such expenses are actually incurred by Maker excluding payments into the Impound
Account and expenses for which Maker shall be reimbursed from, or which shall be
paid for out of, any such account or reserve.

      (e) Notwithstanding the other provisions of this Section 2.1, in the event
that, prior to the Optional Prepayment Determination Date, Maker delivers to
Payee either (i) a written commitment (the "Commitment") for the refinancing of
the loan evidenced by this Note from a Qualified Institutional Lender (as
hereinafter defined), which reasonably provides for the consummation of such
refinance prior to the Optional Prepayment Date or (ii) other evidence in form
and substance satisfactory to Payee in its sole determination of Maker's ability
to refinance the loan evidenced by this Note prior to the Optional Prepayment
Date, then, solely in either such event, the terms of Section 2.1(a), (b), (c)
and (d) of this Note shall be inoperative, provided, however, that upon (x) the
failure of such refinance to be consummated in accordance with the terms of the
Commitment or such other evidence, as applicable, (y) the termination of the
Commitment for any reason or (z) any adverse change in circumstances with
respect to Maker or any principals of Maker, the Mortgaged Property, the
proposed lender or otherwise, as determined by Payee in its sole determination,
which, in Payee's reasonable judgment, significantly decreases the likelihood of
such refinance being consummated prior to the Optional Prepayment Date, the
terms of Section 2.1(a), (b), (c) and (d) of this Note shall immediately become
operative and Maker shall immediately comply with any of the terms thereof
which, except for the operation of this subsection (e), Maker would theretofore
have been obligated to comply. "Qualified Institutional Lender" shall mean a
financial institution or other lender with a long term credit rating which is
not less than investment grade. The determination of whether the conditions set
forth in clause (i) or (ii) above, shall be made and notice of such
determination shall be delivered to Maker, within ten (10) business days
following Payee's receipt of the items set forth in such clauses.

      2.2 Failure to Prepay On or Before Optional Prepayment Date. In the event
that Maker does not prepay the entire principal balance of this Note and any
other amounts outstanding under this Note or any of the other Loan Documents on
or prior to the Optional Prepayment Date,

<PAGE>

the provisions of Section 2.1(b), (c) and (d) as set forth above shall remain in
full force and effect, and the following subsections also shall apply:

      (a) From and after the Optional Prepayment Date, interest shall accrue on
the unpaid principal balance from time to time outstanding under this Note at
the Revised Interest Rate. Interest accrued at the Revised Interest Rate and not
paid pursuant to this Section 2.2 shall be deferred and added to the principal
balance of this Note and shall earn interest at the Revised Interest Rate to the
extent permitted by applicable law (such accrued interest is hereinafter
referred to as "Accrued Interest"). All of the unpaid principal balance of this
Note, including, without limitation, any Accrued Interest, shall be due and
payable on the Extended Maturity Date.

      (b) Maker shall be obligated to pay, and Payee shall collect from the Rent
Account (as defined in the Security Instrument) to the extent of funds on
deposit in such account, on the Optional Prepayment Date and on the eleventh
(11th) day of each calendar month thereafter to and including the Extended
Maturity Date the following payments from Rents (as defined in the Security
Instrument) received on or before such day in the listed order of priority:

            (i) First, the payment of the Monthly Payment Amount with interest
      computed at the Fixed Interest Rate;

            (ii) Second, payments to the Impound Account (as defined in the
      Security Instrument) in accordance with the terms and conditions of the
      Security Instrument;

            (iii) [Reserved];

            (iv) Fourth, payments for monthly Cash Expenses, less management
      fees payable to affiliates of Maker, pursuant to the terms and conditions
      of the related Approved Annual Budget;

            (v) Fifth, payment for Extraordinary Expenses approved by Payee, if
      any;

            (vi) Sixth, payments to Payee of the balance of the funds then on
      deposit in the Rent Account to be applied to (x) any other amounts due
      under the Loan Documents, (y) Accrued Interest and (z) the reduction of
      the outstanding principal balance of this Note until such principal
      balance is paid in full in whatever proportion and priority as Payee may
      determine.

      (c) Nothing in this Article II shall limit, reduce or otherwise affect
Maker's obligations to make payments of the Monthly Payment Amount (including
interest on the Note as provided in Section 1.3 hereof) payments to the Impound
Account and payments of other amounts due hereunder and under the other Loan
Documents, whether or not Rents (as defined in the Security Instrument) are
available to make such payments.

                             ARTICLE III -- DEFAULT

      3.1 Events of Default. It is hereby expressly agreed that should any
default occur in the

<PAGE>

payment of principal or interest as stipulated above and such payment is not
made on the date such payment is due, or should any other default not cured
within any applicable grace or notice period occur under any other Loan
Document, then an event of default (an "Event of Default") shall exist
hereunder, and in such event the indebtedness evidenced hereby, including all
sums advanced or accrued hereunder or under any other Loan Document, and all
unpaid interest accrued thereon, shall, at the option of Payee and without
notice to Maker, at once become due and payable and may be collected forthwith,
whether or not there has been a prior demand for payment and regardless of the
stipulated date of maturity.

      3.2 Late Charges. In the event that any payment is not received by Payee
on the date when due, then, in addition to any default interest payments due
hereunder, Maker shall also pay to Payee a late charge in an amount equal to
five percent (5%) of the amount of such overdue payment.

      3.3 Default Interest Rate. So long as any Event of Default exists
hereunder, regardless of whether or not there has been an acceleration of the
indebtedness evidenced hereby, and at all times after maturity of the
indebtedness evidenced hereby (whether by acceleration or otherwise), interest
shall accrue on the outstanding principal balance of this Note, from the date
due until the date credited, at a rate per annum equal to four percent (4%) in
excess of the Note Rate, or, if such increased rate of interest may not be
collected under applicable law, then at the maximum rate of interest, if any,
which may be collected from Maker under applicable law (the "Default Interest
Rate"), and such default interest shall be immediately due and payable.

      3.4 Maker's Agreements. Maker acknowledges that it would be
extremely difficult or impracticable to determine Payee's actual damages
resulting from any late payment or default, and such late charges and default
interest are reasonable estimates of those damages and do not constitute a
penalty. The remedies of Payee in this Note or in the Loan Documents, or at law
or in equity, shall be cumulative and concurrent, and may be pursued singly,
successively or together, in Payee's discretion.

      3.5 Maker to Pay Costs. In the event that this Note, or any part hereof,
is collected by or through an attorney-at-law, Maker agrees to pay all costs of
collection, including, but not limited to, reasonable attorneys' fees.

      3.6 Exculpation. Notwithstanding anything in this Note or the Loan
Documents to the contrary, but subject to the qualifications hereinbelow set
forth, Payee agrees that:

      (a) Maker shall be liable upon the indebtedness evidenced hereby and for
the other obligations arising under the Loan Documents to the full extent (but
only to the extent) of the security therefor, the same being all properties
(whether real or personal), rights, estates and interests now or at any time
hereafter securing the payment of this Note and/or the other obligations of
Maker under the Loan Documents (collectively, the "Security Property");

      (b) if a default occurs in the timely and proper payment of all or any
part of such indebtedness evidenced hereby or in the timely and proper
performance of the other obligations of Maker under the Loan Documents, any
judicial proceedings brought by Payee against Maker shall

<PAGE>

be limited to the preservation, enforcement and foreclosure, or any thereof, of
the liens, security titles, estates, assignments, rights and security interests
now or at any time hereafter securing the payment of this Note and/or the other
obligations of Maker under the Loan Documents, and no attachment, execution or
other writ of process shall be sought, issued or levied upon any assets,
properties or funds of Maker other than the Security Property, except with
respect to the liability described below in this section; and

            (c) in the event of a foreclosure of such liens, security titles,
estates, assignments, rights or security interests securing the payment of this
Note and/or the other obligations of Maker under the Loan Documents, no judgment
for any deficiency upon the indebtedness evidenced hereby shall be sought or
obtained by Payee against Maker, except with respect to the liability described
below in this section; provided, however, that, notwithstanding the foregoing
provisions of this section, Maker shall be fully and personally liable and
subject to legal action (i) for proceeds paid under any insurance policies (or
paid as a result of any other claim or cause of action against any person or
entity) by reason of damage, loss or destruction to all or any portion of the
Security Property, to the full extent of such proceeds not previously delivered
to Payee, but which, under the terms of the Loan Documents, should have been
delivered to Payee, (ii) for proceeds or awards resulting from the condemnation
or other taking in lieu of condemnation of all or any portion of the Security
Property, to the full extent of such proceeds or awards not previously delivered
to Payee, but which, under the terms of the Loan Documents, should have been
delivered to Payee, (iii) for all tenant security deposits or other refundable
deposits paid to or held by Maker or any other person or entity in connection
with leases of all or any portion of the Security Property which are not applied
in accordance with the terms of the applicable lease or other agreement, (iv)
for rent and other payments received from tenants under leases of all or any
portion of the Security Property paid more than one (1) month in advance, (v)
for rents, issues, profits and revenues of all or any portion of the Security
Property received or applicable to a period after the occurrence of any Event of
Default hereunder or under the Loan Documents, which are not either applied to
the ordinary and necessary expenses of owning and operating the Security
Property or paid to Payee, (vi) for waste committed on the Security Property,
damage to the Security Property as a result of the intentional misconduct or
gross negligence of Maker or any of its principals, officers, general partners
or members, any guarantor, any indemnitor, or any agent or employee of any such
person, or any removal of all or any portion of the Security Property in
violation of the terms of the Loan Documents, to the full extent of the losses
or damages incurred by Payee on account of such occurrence, (vii) for failure to
pay any valid taxes, assessments, mechanic's liens, materialmen's liens or other
liens which could create liens on any portion of the Security Property which
would be superior to the lien or security title of the Security Instrument or
the other Loan Documents, to the full extent of the amount claimed by any such
lien claimant except, with respect to any such taxes or assessments, to the
extent that funds have been deposited with Payee pursuant to the terms of the
Security Instrument specifically for the applicable taxes or assessments and not
applied by Payee to pay such taxes and assessments, (viii) for all obligations
and indemnities of Maker under the Loan Documents relating to hazardous or toxic
substances or radon or compliance with environmental laws and regulations to the
full extent of any losses or damages (including, but not limited to, those
resulting from diminution in value of any Security Property) incurred by Payee
as a result of the existence of such hazardous or toxic substances or radon or
failure to comply with environmental laws or regulations, and (ix) for fraud,
material misrepresentation or failure to disclose a material fact by Maker or
any of its principals, officers, general partners or members, any

<PAGE>

guarantor, any indemnitor or any agent, employee or other person authorized or
apparently authorized to make statements, representations or disclosures on
behalf of Maker, any principal, officer, general partner or member of Maker, any
guarantor or any indemnitor, to the full extent of any losses, damages and
expenses of Payee on account thereof.

      References herein to particular sections of the Loan Documents shall be
deemed references to such sections as affected by other provisions of the Loan
Documents relating thereto. Nothing contained in this section shall (1) be
deemed to be a release or impairment of the indebtedness evidenced by this Note
or the other obligations of Maker under the Loan Documents or the lien of the
Loan Documents upon the Security Property, or (2) preclude Payee from
foreclosing the Loan Documents in case of any default or from enforcing any of
the other rights of Payee except as stated in this section, or (3) limit or
impair in any way whatsoever (A) any Indemnity and Guaranty Agreements (the
"Indemnity Agreements") or (B) the Environmental Indemnity Agreement (the
"Environmental Indemnity Agreement"), executed and delivered in connection with
the indebtedness evidenced by this Note or release, relieve, reduce, waive or
impair in any way whatsoever, any obligation of any party to the Indemnity
Agreements or the Environmental Indemnity Agreement.

      Notwithstanding the foregoing, the agreement of Payee not to pursue
recourse liability as set forth in subsection (c) above SHALL BECOME NULL AND
VOID and shall be of no further force and effect (i) in the event of a default
by Maker or Indemnitor (as defined in the Security Instrument) of any of the
covenants set forth in Section 1.13 or Section 1.33 of the Security Instrument,
or (ii) if the Security Property or any part thereof shall become an asset in
(A) a voluntary bankruptcy or insolvency proceeding of Maker, or (B) an
involuntary bankruptcy or insolvency proceeding of Maker which is not dismissed
within sixty (60) days of filing.

      Notwithstanding anything to the contrary in this Note, the Security
Instrument or any of the other Loan Documents, Payee shall not be deemed to have
waived any right which Payee may have under Section 506(a), 506(b), 1111(b) or
any other provisions of the U.S. Bankruptcy Code to file a claim for the full
amount of the indebtedness evidenced hereby or secured by the Security
Instrument or any of the other Loan Documents or to require that all collateral
shall continue to secure all of the indebtedness owing to Payee in accordance
with this Note, the Security Instrument and the other Loan Documents.

                        ARTICLE IV -- GENERAL CONDITIONS

      4.1 No Waiver; Amendment. No failure to accelerate the indebtedness
evidenced hereby by reason of default hereunder, acceptance of a partial or past
due payment, or indulgences granted from time to time shall be construed (i) as
a novation of this Note or as a reinstatement of the indebtedness evidenced
hereby or as a waiver of such right of acceleration or of the right of Payee
thereafter to insist upon strict compliance with the terms of this Note, or (ii)
to prevent the exercise of such right of acceleration or any other right granted
hereunder or by any applicable laws; and Maker hereby expressly waives the
benefit of any statute or rule of law or equity now provided, or which may
hereafter be provided, which would produce a result contrary to or in conflict
with the foregoing. No extension of the time for the payment of this Note or any
installment due hereunder made by agreement with any person now or hereafter
liable for the payment of this Note shall operate to release, discharge, modify,
change or affect the original liability of Maker under this

<PAGE>

Note, either in whole or in part, unless Payee agrees otherwise in writing. This
Note may not be changed orally, but only by an agreement in writing signed by
the party against whom enforcement of any waiver, change, modification or
discharge is sought.

      4.2 Waivers. Presentment for payment, demand, protest and notice of
demand, protest and nonpayment and all other notices are hereby waived by Maker.
Maker hereby further waives and renounces, to the fullest extent permitted by
law, all rights to the benefits of any moratorium, reinstatement, marshaling,
forbearance, valuation, stay, extension, redemption, appraisement, exemption and
homestead now or hereafter provided by the Constitution and laws of the United
States of America and of each state thereof, both as to itself and in and to all
of its property, real and personal, against the enforcement and collection of
the obligations evidenced by this Note or the other Loan Documents.

      4.3 Limit of Validity. The provisions of this Note and of all agreements
between Maker and Payee, whether now existing or hereafter arising and whether
written or oral, including, but not limited to, the Loan Documents, are hereby
expressly limited so that in no contingency or event whatsoever, whether by
reason of demand or acceleration of the maturity of this Note or otherwise,
shall the amount contracted for, charged, taken, reserved, paid or agreed to be
paid ("Interest") to Payee for the use, forbearance or detention of the money
loaned under this Note exceed the maximum amount permissible under applicable
law. If, from any circumstance whatsoever, performance or fulfillment of any
provision hereof or of any agreement between Maker and Payee shall, at the time
performance or fulfillment of such provision shall be due, exceed the limit for
Interest prescribed by law or otherwise transcend the limit of validity
prescribed by applicable law, then, ipso facto, the obligation to be performed
or fulfilled shall be reduced to such limit, and if, from any circumstance
whatsoever, Payee shall ever receive anything of value deemed Interest by
applicable law in excess of the maximum lawful amount, an amount equal to any
excessive Interest shall be applied to the reduction of the principal balance
owing under this Note in the inverse order of its maturity (whether or not then
due), in which event no prepayment fee or premium shall be due, or, at the
option of Payee, be paid over to Maker, and not to the payment of Interest. All
Interest (including any amounts or payments judicially or otherwise under the
law deemed to be Interest) contracted for, charged, taken, reserved, paid or
agreed to be paid to Payee shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of this Note,
including any extensions and renewals hereof until payment in full of the
principal balance of this Note so that the Interest thereon for such full term
will not exceed at any time the maximum amount permitted by applicable law. To
the extent United States federal law permits a greater amount of interest than
is permitted under the law of the State in which the Security Property is
located, Payee will rely on United States federal law for the purpose of
determining the maximum amount permitted by applicable law. Additionally, to the
extent permitted by applicable law now or hereafter in effect, Payee may, at its
option and from time to time, implement any other method of computing the
maximum lawful rate under the law of the State in which the Security Property is
located or under other applicable law by giving notice, if required, to Maker as
provided by applicable law now or hereafter in effect. This Section 4.3 will
control all agreements between Maker and Payee.

      4.4 Use of Funds. Maker hereby warrants, represents and covenants that no
funds disbursed hereunder shall be used for personal, family or household
purposes.

<PAGE>

      4.5 Unconditional Payment. Maker is and shall be obligated to pay
principal, interest and any and all other amounts which become payable hereunder
or under the other Loan Documents absolutely and unconditionally and without any
abatement, postponement, diminution or deduction and without any reduction for
counterclaim or setoff. In the event that at any time any payment received by
Payee hereunder shall be deemed by a court of competent jurisdiction to have
been a voidable preference or fraudulent conveyance under any bankruptcy,
insolvency or other debtor relief law, then the obligation to make such payment
shall survive any cancellation or satisfaction of this Note or return thereof to
Maker and shall not be discharged or satisfied with any prior payment thereof or
cancellation of this Note, but shall remain a valid and binding obligation
enforceable in accordance with the terms and provisions hereof, and such payment
shall be immediately due and payable upon demand.

      4.6 GOVERNING LAW. THIS NOTE SHALL BE INTERPRETED, CONSTRUED AND ENFORCED
ACCORDING TO THE LAWS OF THE STATE IN WHICH THE SECURITY PROPERTY IS LOCATED.

      4.7 WAIVER OF JURY TRIAL. MAKER, TO THE FULL EXTENT PERMITTED BY LAW,
HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF
COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY
RELATING TO THE DEBT EVIDENCED BY THIS NOTE OR ANY CONDUCT, ACT OR OMISSION OF
PAYEE OR MAKER, OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, PARTNERS,
MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH
PAYEE OR MAKER, IN EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE.

      4.8 Secondary Market. Payee may sell, transfer and deliver the Loan
Documents to one or more investors in the secondary mortgage market. In
connection with such sale, Payee may retain or assign responsibility for
servicing the loan evidenced by this Note or may delegate some or all of such
responsibility and/or obligations to a servicer, including, but not limited to,
any subservicer or master servicer, on behalf of the investors. All references
to Payee herein shall refer to and include, without limitation, any such
servicer, to the extent applicable.

      4.9 Dissemination of Information. If Payee determines at any time to sell,
transfer or assign this Note, the Security Instrument and the other Loan
Documents, and any or all servicing rights with respect thereto, or to grant
participations therein (the "Participations") or issue mortgage pass-through
certificates or other securities evidencing a beneficial interest in a rated or
unrated public offering or private placement (the "Securities"), Payee may
forward to each purchaser, transferee, assignee, servicer, participant,
investor, or their respective successors in such Participations and/or
Securities (collectively, the "Investor") or any Rating Agency rating such
Securities, each prospective Investor and each of the foregoing's respective
counsel, all documents and information which Payee now has or may hereafter
acquire relating to the debt evidenced by this Note and to Maker, any guarantor,
any indemnitor and the Security Property,

<PAGE>

which shall have been furnished by Maker, any guarantor or any indemnitor as
Payee determines necessary or desirable.

                      ARTICLE V -- MISCELLANEOUS PROVISIONS

      5.1 Miscellaneous. The terms and provisions hereof shall be binding upon
and inure to the benefit of Maker and Payee and their respective heirs,
executors, legal representatives, successors, successors-in-title and assigns,
whether by voluntary action of the parties or by operation of law. As used
herein, the terms "Maker" and "Payee" shall be deemed to include their
respective heirs, executors, legal representatives, successors,
successors-in-title and assigns, whether by voluntary action of the parties or
by operation of law. If Maker consists of more than one person or entity, each
shall be jointly and severally liable to perform the obligations of Maker under
this Note. All personal pronouns used herein, whether used in the masculine,
feminine or neuter gender, shall include all other genders; the singular shall
include the plural and vice versa. Titles of articles and sections are for
convenience only and in no way define, limit, amplify or describe the scope or
intent of any provisions hereof. Time is of the essence with respect to all
provisions of this Note. This Note and the other Loan Documents contain the
entire agreements between the parties hereto relating to the subject matter
hereof and thereof and all prior agreements relative hereto and thereto which
are not contained herein or therein are terminated.

      5.2 Maker's Tax Identification Number is 20-1676647.

             [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

<PAGE>

      IN WITNESS WHEREOF, Maker has executed this Note as of the date first
written above.

                                     MAKER:

                                     COLE LZ GLENDALE AZ, LLC,
                                     a Delaware limited liability company

                                     By: Cole REIT Advisors II, LLC,
                                         a Delaware limited liability company,
                                         its manager

                                         By: /S/ John M. Pons
                                             -----------------------------------
                                             John M. Pons, Senior Vice President

<PAGE>

                                           Schedule A

<PAGE>

                             AUTO DRAFT INFORMATION

If you would like to sign up for our automatic payment drafting service, fill
out and return the enclosed authorization form along with a voided check and
mail to the address listed below. Please continue to send your monthly payments
until you receive written confirmation that the auto-draft service has begun.
You will receive written notification confirming your auto-draft setup and first
auto-draft date within 7 business days of the 15th of the month submitted.

NOTE: REQUESTS MUST BE RECEIVED BY THE 15TH TO BE SET UP FOR THE FOLLOWING
MONTH.

WACHOVIA SECURITIES
Attention: Customer Service Department
8739 Research Drive - URP4
Charlotte, NC 28288-1075

<PAGE>

WACHOVIA
SECURITIES

                                 AUTO DRAFT FORM

I hereby request and authorize Wachovia Bank, National Association, doing
business as Wachovia Securities ("Wachovia Securities"), to draft my account
specified below made payable to the order of Wachovia Securities located in
Charlotte, NC, provided there are sufficient funds in said account to pay the
same upon presentation. I agree that your rights in respect to each such draft
shall be the same as if it were a check drawn on Wachovia Securities and signed
personally by me. This authorization is to remain in effect until revoked by me
in writing and until Wachovia Securities actually receives such notice. I agree
that Wachovia Securities shall be fully protected in honoring any such drafts.

LOAN NUMBER                               NAME OF BORROWING ENTITY
------------------------------------      ----------------------------
Wachovia Loan # (9 digits)                Borrower Name
BANK'S ROUTING NUMBER FROM CHECK          ACCOUNT # TO BE DRAFTED
------------------------------------      ----------------------------
Bank Routing Number (9 digits)            Bank Account # (from check)
NAME OF BANK TO BE DRAFTED                LOCATION OF THE BANK
------------------------------------      ----------------------------
Name of Bank                              City and State

                  PLEASE INCLUDE A VOIDED CHECK WITH THIS FORM

                                 [VOIDED CHECK]

BORROWER'S SIGNATURE                                      BORROWER'S NAME
-----------------------------------------------------     ---------------
Authorized Signature (as it appears on bank documents)    Print Name
                                                          TODAY'S DATE
                                                          ---------------
                                                          Date

DAY OF MONTH PAYMENT WILL DRAFT                           BORROWER'S FAX NUMBER
------------------------------------                      ----------------------
Draft Date (Payment due date)                             Fax #

TERMS AND CONDITIONS

EFFECTIVE DATE OF DRAFT: The draft will occur on the payment due date, unless
otherwise agreed upon by borrower and servicer. The borrower will receive a
confirmation letter to insure auto-draft set-up and to confirm draft date.

REVOCATION OF THIS AUTHORITY: The authority of Wachovia Securities to transfer
funds from the borrowers account will not cease until Wachovia Securities
receives written notification revoking this authorization agreement. Wachovia
Securities must receive this notice at least 15 days prior to the date on which
you wish the arrangement to end.

DISHONOR: Wachovia Securities shall be under no liability whatsoever if a
transfer of funds cannot be made, whether or not such failure is caused by the
act of omission of the borrower. INSUFFICIENT FUNDS: If the automatic withdrawal
is returned due to insufficient funds both Wachovia Securities and the
borrower's financial institution may assess a fee.

ERRORS: The borrower has the right to have the amount of any incorrect deduction
immediately corrected by the borrower's financial institution provided the
borrower sends the appropriate notice to the financial institution.

AMOUNT OF DRAFT: Wachovia Securities will withdraw the amount of the current
monthly receivable. This amount may vary due to escrow analyses, interest rate
changes or reserve requirements as applicable.

ACH ROUTING NUMBER: Please contact the financial institution from which the
money will be drafted for this information.

Wachovia Securities is the trade name under which Wachovia Corporation conducts
its investment banking, capital markets and institutional securities business
through First Union Securities, Inc. ("FUSI"), Member NYSE, NASD, SIPC, and
through other bank and non-bank and broker-dealer subsidiaries of Wachovia
Corporation.

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