Document:

SALE-PURCHASE AGREEMENT
                             -----------------------
                          AND JOINT ESCROW INSTRUCTIONS
                          -----------------------------

     SALE-PURCHASE  AGREEMENT AND JOINT ESCROW  INSTRUCTIONS (this "AGREEMENT"),
made as of December 8, 2000,  between  WELLSFORD CAPITAL  PROPERTIES,  L.L.C., a
Delaware  limited  liability  company  having  an  address  c/o  Wellsford  Real
Properties,  Inc.,  535  Madison  Avenue,  26th  Floor New York,  New York 10022
("SELLER")  and DIAL  ADVISORY  GROUP,  INC., a Nebraska  corporation  having an
office at 11506 Nicholes Street, Suite 200, Omaha, Nebraska 68154 ("PURCHASER").

                              W I T N E S S E T H:
                              - - - - - - - - - -

     Seller and  Purchaser,  in  consideration  of the mutual  covenants  herein
contained, hereby agree as follows:

                         ARTICLE 1. CERTAIN DEFINITIONS
                         ------------------------------

     For  purposes  of this  Agreement,  the  following  terms  shall  have  the
following meanings:

     1.1.  "Affiliate"  shall mean,  with respect to any specified  Person,  any
other Person that directly or  indirectly,  through one or more  intermediaries,
controls,  is  controlled  by, or is under  common  control  with the  specified
Person.  For  purposes  of this  definition,  the  term  (i)  "Person"  means an
individual,  corporation, limited liability company, partnership, joint venture,
association,   joint  stock  company,  trust,   unincorporated  organization  or
government   or  any   agency  or   subdivision   thereof   and  (ii)  the  term
"controls"(including,  with correlative meanings,  the terms "controlled by" and
"under common  control with") means the  ownership,  directly or indirectly,  of
more than fifty percent (50%) of the beneficial interests in a Person,  together
with the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person,  whether through ownership
of voting stock, by contract or otherwise.

     1.2. "Broker" shall mean Grubb & Ellis Company.

     1.3. "Business Day" shall mean any day other than a Saturday, Sunday or any
day upon which  banks in the States of  California  or New York are  required or
authorized by law to be closed.

     1.4. "Escrowee" shall mean Commerce Escrow Company.

     1.5.  "Existing  Leases"  shall mean the  leases,  licenses  and  occupancy
agreements set forth in Exhibit C annexed hereto.

     1.6.  "Existing  Service  Contracts"  shall  mean  the  service  contracts,
maintenance agreements,  brokerage agreements and other agreements affecting the
Property and set forth in Exhibit D annexed hereto.

<PAGE>

     1.7. "Invasive Tests" shall mean any physical  inspection or testing of the
Premises other than visual examination,  and shall include,  without limitation,
sampling of soils or other media.

     1.8.  "Leases" shall mean the Existing  Leases and the New Leases in effect
on the Closing Date.

     1.9.  "Leasing  Costs" shall mean,  collectively,  (i) leasing or brokerage
commissions,  (ii) direct payments, tenant improvement allowances,  work letters
or free rent and (iii) rent  allowances  or rent  credits,  in each case paid or
granted to a tenant under an Existing Lease or a New Lease.

     1.10.  "New  Leases"  shall  mean any new  leases,  licenses  or  occupancy
agreements  entered  into  by  Seller  in  accordance  with  the  terms  of this
Agreement.

     1.11. "New Service Contracts" shall mean any service contracts, maintenance
agreements,  brokerage  agreements or other agreements entered into by Seller in
accordance with the terms of this Agreement.

     1.12. "Service Contracts" shall mean the Existing Service Contracts and the
New Service Contracts in effect on the Closing Date.

     1.13.  "Title  Exceptions"  shall  mean  any  lien,  encumbrance,  security
interest,  charge,   reservation,   lease,  tenancy,   easement,   right-of-way,
encroachment,  restrictive  covenant,  condition  or  limitation  affecting  the
Premises.

     1.14. "Title Insurer" shall mean Commonwealth Land Title Insurance Company.

     1.15.  "Violations"  shall  mean  any  violation  of any  law or  municipal
ordinance,  order or  requirement  noted or issued  against the  Premises by any
federal, state or municipal department having jurisdiction.

                      ARTICLE 2. SALE-PURCHASE OF PROPERTY
                      ------------------------------------

     2.1.  Agreement to Sell and Purchase.  Seller shall sell to Purchaser,  and
Purchaser  shall purchase from Seller,  at the Purchase Price and upon the terms
and conditions set forth in this  Agreement,  the following  (collectively,  the
"PROPERTY"):  (a) all of Seller's right, title and interest as lessee under that
certain Joint Occupancy Lease more  particularly  described in Exhibit A annexed
hereto (the "GROUND LEASE"),  demising  certain real property more  particularly
described in Exhibit B annexed hereto (the "LAND") and the improvements  thereon
(the  "IMPROVEMENTS")  (the  Land  and  the  Improvements,   collectively,   the
"PREMISES");  (b)  all of  Seller's  right,  title  and  interest  in and to any
appurtenances to the Land; (c) all right, title and interest of Seller in and to
any  furniture,  furnishings,  moveable  equipment and other  personal  property
located at, and used in  connection  with,  the  Premises  (herein  collectively
called the "PERSONAL  PROPERTY");  (d) Seller's right, title and interest in and
to the Leases; (e) to the extent assignable,  Seller's right, title and interest
in and to the  Service  Contracts;  and (f) to the extent  assignable,  Seller's
right,  title and  interest in and to any licenses and permits used or useful in
the operation of the Premises  (collectively,  the "LICENSES AND PERMITS").  The
Premises are located at, and are commonly known, as 1651 Sixteenth Street, Santa

<PAGE>

Monica,  California (the "16TH STREET PREMISES") and 900 Colorado Avenue,  Santa
Monica, California (the "COLORADO AVENUE PREMISES").

     2.2. Condition of Property.  Purchaser is a sophisticated  investor and its
valuation  of and  decision  to  purchase  the  Property  is based  upon its own
independent  expert  evaluations of such facts and materials  deemed relevant by
Purchaser and its agents. Other than the express  representations and warranties
of Seller specifically set forth herein,  Purchaser has not relied upon any oral
or  written  information  from  Seller  or its  employees,  affiliates,  agents,
consultants,  advisors or representatives,  including,  without limitation,  any
appraisals,  projections or evaluations of credit quality  prepared by Seller or
any  of  its   employees,   affiliates,   agents,   consultants,   advisors   or
representatives.   Purchaser  further  acknowledges  that  no  employee,  agent,
consultant, advisor or representative of Seller has been authorized to make, and
that Purchaser has not relied upon, any statements or representations other than
those specifically contained in this Agreement.  Without limiting the generality
of the foregoing,  Purchaser  acknowledges and agrees that,  except as expressly
set forth herein, Purchaser is purchasing the Property "as is" and "where is" on
the Closing Date, and, except as expressly set forth herein, Seller is making no
representation or warranty,  express or implied, and Purchaser has not relied on
any  representation  or warranty,  express or implied,  regarding  the Property,
including,  without  limitation,  any representation or warranty with respect to
(a) the business or financial  condition of any tenant of the Property,  (b) the
physical  condition of any Improvement or Personal Property  comprising all or a
part of any Property, or its fitness, merchantability or suitability for any use
or purpose, (c) the leases,  rents, income or expenses of the Property,  (d) the
compliance  or  non-compliance  with  any  laws,  codes,  ordinances,  rules  or
regulations of any governmental authority (including,  without limitation,  laws
pertaining  to  hazardous  materials)  or (e) the  current  or future use of the
Property,  including,  but not limited to, any  Property's  use for  commercial,
retail,  industrial  or other  purposes.  Seller  is not  liable or bound in any
manner  by any  verbal  or  written  statements,  representations,  real  estate
brokers' "set-ups", offering memoranda or information pertaining to the Property
furnished  by any real estate  broker,  advisor,  consultant,  agent,  employee,
representative or other person.

                            ARTICLE 3. PURCHASE PRICE
                            -------------------------

     3.1.  Purchase  Price.  The purchase price (the  "PURCHASE  PRICE") for the
Property shall be SIXTEEN MILLION FIVE HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS
($16,550,000.00),  net of adjustments  made in accordance  with Article 6 below.
The entire  Purchase  Price  shall be  allocated  to  Seller's  interest  in the
Premises. The Purchase Price shall be paid by Purchaser as follows:

          (a) On or before  the date  which is two (2)  Business  Days after the
     Opening of Escrow (hereinafter  defined),  Purchaser shall deposit into the
     Escrow  (hereinafter  defined) Two Hundred Fifty Thousand and 00/00 Dollars
     ($250,000.00)  (the  "DEPOSIT").  The  Deposit  shall  be paid by (i)  wire
     transfer of immediately  available  funds to the account of Escrowee,  (ii)
     Purchaser's  check,  subject  to  collection  or  (iii)  an  unconditional,
     irrevocable  letter of credit naming Escrowee as  beneficiary,  issued by a
     United  States  bank  having  total  assets in excess of  $100,000,000  and
     otherwise in form reasonably acceptable to Seller (the "LETTER OF CREDIT").
     The  Deposit  shall be held by  Escrowee  in  accordance  with the terms of
     Section 3.3 hereof.

<PAGE>

          (b) On or  before  1:00 p.m.  (California  time) on the  Business  Day
     immediately  preceding the Closing Date  (hereinafter  defined),  Purchaser
     shall, in accordance with the terms of Section 3.2(d) hereof,  deposit into
     the Escrow  immediately  available funds in an amount which,  when added to
     the Deposit,  will equal the Purchase  Price,  net of  adjustments  made in
     accordance  with the terms of Article 6 hereof and costs  chargeable to the
     account of Purchaser ("CLOSING PAYMENT").

     3.2. Escrow Instructions.

          (a) On or before the date which is two Business  Days after Seller and
     Purchaser have mutually executed and delivered this Agreement,  the parties
     shall open an escrow (the  "ESCROW")  with  Escrowee in order to consummate
     the  purchase  and sale of the  Property in  accordance  with the terms and
     provisions hereof.  This Agreement shall be deposited in the Escrow and the
     provisions  hereof shall  constitute  joint primary escrow  instructions to
     Escrowee. The "OPENING OF ESCROW" shall be deemed to have occurred upon the
     later to occur of  Escrowee's  receipt  of (i) the  Deposit  and (ii) fully
     executed counterparts of this Agreement. Notwithstanding the fact that this
     Agreement is executed by Seller and Purchaser,  this Agreement shall not be
     binding or enforceable prior to the Opening of Escrow.  Promptly  following
     the  occurrence  thereof,  Escrowee shall furnish Seller and Purchaser with
     written confirmation of the date of the Opening of Escrow.

          (b) Prior to the  Closing  Date but not,  in any  event,  until  after
     Purchaser has  performed  its  obligations  under  Sections  3.2(c) and (d)
     hereof, Seller shall deposit the following into Escrow:

               (i) An  assignment  and  assumption  of  the  Ground  Lease  (the
          "ASSIGNMENT  OF GROUND  Lease"),  duly  executed and  acknowledged  by
          Seller, in the form of Exhibit E annexed hereto;

               (ii) a statement of documentary  transfer tax (the  "STATEMENT OF
          TRANSFER TAX") for attachment to the Assignment of Ground Lease,  duly
          executed by Seller;

               (iii) Three (3) original  counterparts  of a bill of sale for the
          Personal  Property (the "BILL OF SALE"),  duly executed by Seller,  in
          the form of Exhibit G annexed hereto;

               (iv)  Three  (3)  original  counterparts  of  an  assignment  and
          assumption of the Leases (the  "ASSIGNMENT OF LEASES"),  duly executed
          by Seller, in the form of Exhibit H annexed hereto;

               (v)  Three  (3)  original   counterparts  of  an  assignment  and
          assumption of the  assignable  Service  Contracts  and the  assignable
          Licenses and Permits (the "ASSIGNMENT OF SERVICE  CONTRACTS,  LICENSES
          AND  Permits"),  duly  executed  by  Seller,  in the form of Exhibit I
          annexed hereto;

               (vi) Three (3) original counterparts of an affidavit by Seller in
          satisfaction  of the  requirements  of  Section  1445 of the  Internal
          Revenue Code, as amended (the "SECTION 1445 AFFIDAVIT"), duly executed
          by Seller;

<PAGE>

               (vii) Three (3) original  counterparts of a Withholding Exemption
          Certificate stating that Seller is exempt from California  withholding
          requirements ("FORM 597W"), duly executed by Seller;

               (viii) One original  counterpart of a notice letter to the lessor
          under the Ground Lease,  duly  executed by Seller,  (the "GROUND LEASE
          NOTICE");

               (ix) Original counterparts of notice letters addressed to each of
          the tenants under the Leases (the "LEASE  NOTICES"),  duly executed by
          Seller;

               (x) One original counterpart of the Ground Lease (or, if the same
          is not  available,  a copy  thereof,  certified  by Seller to be true,
          complete and correct);

               (xi) One original  counterpart  of each of the Leases (or, if the
          same are unavailable,  copies thereof, certified by Seller to be true,
          complete and correct);

               (xii) One original  counterpart of each of the Service  Contracts
          assigned  to  Purchaser  (or,  if the  same  are  unavailable,  copies
          thereof, certified by Seller to be true, complete and correct);

               (xiii) One  original  counterpart  of the Ground  Lease  Estoppel
          Certificate;

               (xiv) One  original  counterpart  of each of the Tenant  Estoppel
          Certificates (and, if applicable,  the Seller's Estoppel  Certificate)
          (each as hereinafter defined);

               (xv) Three (3) original counterparts of an instrument pursuant to
          which Seller (i) remakes the representations made by Seller in Section
          7.3(a) - (g) hereof as of the Closing Date and (ii) advises  Purchaser
          of  any  facts  or  circumstances  which  would  render  any  of  such
          representations, as made as of the Closing Date, untrue;

               (xvi) One (1) original  counterpart  of  appropriate  authorizing
          documents  evidencing that Seller has the authority to enter into this
          Agreement, carry out the terms of this Agreement and sell the Property
          and  evidencing  that the  individual or  individuals  executing  this
          Agreement  on behalf of Seller  and any other  documents  contemplated
          hereunder  or related  hereto have the  authority  to so execute  such
          documents; and

               (xvii) Such other  instruments and documents as may be reasonably
          required by Escrowee to close the Escrow.

          (c) At  least  two  (2)  Business  Days  prior  to the  Closing  Date,
     Purchaser shall deposit into Escrow the following:

               (i) One (1)  original  counterpart  of the  Assignment  of Ground
          Lease, duly executed and acknowledged by Purchaser;

               (ii) Three (3) original counterparts of the Assignment of Leases,
          duly executed by Purchaser;

<PAGE>

               (iii)  Three  (3)  original  counterparts  of the  Assignment  of
          Service Contracts, Licenses and Permits duly executed by Purchaser;

               (iv) One original  counterpart  of the Ground Lease Notice,  duly
          executed by Purchaser;

               (v) One original  counterpart of each of the Lease Notices,  duly
          executed by Purchaser;

               (vi)  One  original   counterpart  of   appropriate   authorizing
          documents  evidencing  that  Purchaser has the authority to enter into
          this Agreement, carry out the terms of this Agreement and purchase the
          Property and evidencing  that the individual or individuals  executing
          this  Agreement  on  behalf  of  Purchaser  and  any  other  documents
          contemplated  hereunder  or related  hereto have the  authority  to so
          execute such documents; and

               (vii) Such other  instruments  and documents as may be reasonably
          required by Escrowee to close the Escrow.

          (d) On or  before  1:00 p.m.  (California  time) on the  Business  Day
     immediately  preceding the Closing Date,  Purchaser  shall deposit into the
     Escrow immediately available funds in the amount of the Closing Payment.

          (e) Escrow shall not close unless and until the  following  conditions
     precedent and contingencies have been satisfied or waived in writing by the
     party for whose benefit the conditions have been included:

               (i) Each of the  conditions  to  Closing  set forth in  Article 5
          hereof  shall have been either  satisfied  or waived in writing by the
          party for whose benefit such conditions run;

               (ii) Escrowee shall be in possession of all funds,  documents and
          instruments  to be  deposited  into  Escrow  in  accordance  with  the
          provisions of Sections 3.2(b) through (d) hereof; and

               (iii) The Title  Insurer  shall be prepared to issue to Purchaser
          the Title Policy (hereinafter defined).

          (f) Upon  satisfaction  of the  conditions set forth in Section 3.2(e)
     above, Escrowee shall close the Escrow, i.e., perform each of the following
     acts  in  exactly  the  following  order  the  occurrence  of  which  shall
     constitute the "Close of Escrow":

               (i) Cause the  Ground  Lease  Assignment  to be  recorded  in the
          Official Records of Los Angeles County, California;

               (ii) Deliver to Purchaser two fully executed  counterparts of the
          Section 1445  Affidavit,  the Bill of Sale,  the Assignment of Leases,
          the  Assignment  of  Service  Contracts,  Licenses  and  Permits,  the
          Statement of Transfer Tax and Form 597W and one conformed  copy of the
          recorded Assignment of Ground Lease;

<PAGE>

               (iii) Deliver to Purchaser the original counterparts,  or copies,
          as the case may be, of the  Ground  Lease,  the  Leases,  the  Service
          Contracts, the Ground Lease Estoppel Certificate,  the Tenant Estoppel
          Certificates and (if applicable) the Seller Estoppel Certificate;

               (iv)  Deliver to Seller  one fully  executed  counterpart  of the
          Section 1445  Affidavit,  the Bill of Sale,  the Assignment of Leases,
          the  Assignment  of  Service  Contracts,  Licenses  and  Permits,  the
          Statement of Transfer Tax and Form 597W and one conformed  copy of the
          recorded Assignment of Ground Lease; and

               (v) Disburse to Seller the Deposit and the Closing Payment,  less
          the amount of any costs chargeable to the account of Seller; provided,
          however,  that if  Purchaser,  in lieu of a cash  deposit,  posts  the
          Letter of Credit with  Escrowee in accordance  with the  provisions of
          Section 3.1(a) hereof,  Escrowee is hereby  authorized and directed by
          Seller  and  Purchaser  upon the Close of Escrow to draw upon the full
          amount of the Letter of Credit and pay the proceeds thereof,  together
          with the Closing Payment (less any costs  chargeable to the account of
          Seller) to Seller.

     3.3. Deposit in Escrow.

          (a)  Escrowee  shall hold the Deposit in the Escrow until the Close of
     Escrow or sooner termination of this Agreement.  Any interest earned on the
     Deposit  shall be paid to the same party  entitled  to be paid the  Deposit
     hereunder  (as and when such party is  entitled  to the  Deposit),  and the
     party  receiving  such  interest  shall pay any income taxes  thereon.  For
     purposes  thereof,  the tax  identification  numbers of the  parties are as
     follows: 13-4027757 (Seller); and 47-0700015 (Purchaser).

          (b) If this Agreement is validly terminated by Purchaser in accordance
     with the provisions of Section 4.1 hereof, the Deposit shall be refunded to
     Purchaser.

          (c) At the Close of Escrow,  the Deposit  shall be paid by Escrowee to
     Seller in accordance with the provisions of Section 3.2(f) above.

          (d) If Purchaser posts the Letter of Credit with Escrowee in lieu of a
     cash deposit, Escrowee is hereby unconditionally and irrevocably authorized
     and  directed by Seller and  Purchaser  to draw upon the full amount of the
     same (x) in the event that either Seller or Purchaser  becomes  entitled to
     disbursement of the Deposit in accordance with the terms hereof,  whereupon
     the proceeds  thereof shall be paid to the party so entitled and (y) in the
     event  Purchaser  fails to renew  the  Letter of Credit  (or  substitute  a
     replacement irrevocable, unconditional letter of credit therefor, issued by
     a bank with not less than  $100,000,000  in assets  and  otherwise  in form
     reasonably  acceptable to Seller) two (2) days prior to any expiration date
     set forth therein,  whereupon  Escrowee shall hold the proceeds  thereof in
     Escrow in accordance with the provisions of this Section 3.3.

          (e) If for any  reason the Close of Escrow  does not  occur,  Escrowee
     shall  continue  to hold the  Deposit  until  otherwise  directed  by joint
     written instructions from the parties to this Agreement or a final judgment
     of a court of competent  jurisdiction.  Escrowee,  however,  shall have the
     right at any time to deposit the  Deposit  with the clerk of any federal or
     state court  sitting in Los Angeles  County.  Escrowee  shall give  written
     notice of such deposit to Seller and Purchaser. Upon

<PAGE>

     such  deposit,  Escrowee  shall be relieved and  discharged  of all further
     obligations and responsibilities hereunder.

          (f) The  parties  acknowledge  that  Escrowee  is  acting  solely as a
     stakeholder at their request and for their convenience, that Escrowee shall
     not be deemed to be the agent of either of the parties,  and that  Escrowee
     shall not be liable to either of the parties for any act or omission on its
     part unless  taken or suffered in bad faith,  in willful  disregard of this
     Agreement or involving gross negligence. Seller and Purchaser shall jointly
     and severally  indemnify  and hold  Escrowee  harmless from and against all
     costs, claims and expenses,  including reasonable attorneys' fees, incurred
     in connection with the performance of Escrowee's duties  hereunder,  except
     with respect to actions or  omissions  taken or suffered by Escrowee in bad
     faith, in willful disregard of this Agreement or involving gross negligence
     on the part of Escrowee.

          (g) Upon any  delivery of the Deposit as provided in Sections  3.2(b),
     (c)  or  (d)  above,   Escrowee   shall  be  relieved  of  all   liability,
     responsibility or obligation with respect to or arising out of the Deposit.

          (h)  Escrowee  shall  be  entitled  to rely or act  upon  any  notice,
     instrument  or  document  believed  by  Escrowee  to be  genuine  and to be
     executed and delivered by the proper  person,  and shall have no obligation
     to verify any statements contained in any notice, instrument or document or
     the  accuracy  or  due  authorization  of  the  execution  of  any  notice,
     instrument or document.

     3.4. Costs of Escrow. Costs of the Escrow shall be allocated as follows:

          (a)  Seller  shall at the Close of Escrow pay for (i)  transfer  taxes
     payable to the State of California, the City of Santa Monica and the County
     of Los Angeles, (ii) premiums, charges and fees payable to Title Insurer in
     connection  with the Title Policy to be  delivered to Purchaser  hereunder,
     (iii)  the  cost  of  updating  the  Surveys  (hereinafter  defined),  (iv)
     recording  fees  required to discharge any Title  Exception  which is not a
     Permitted Exception  (hereinafter  defined), and (v) one-half of the escrow
     fees payable to Escrowee.

          (b) Purchaser  shall at the Close of Escrow pay (i) recording fees for
     the  recording of the  Assignment  of Ground Lease and (ii) one-half of the
     escrow fees payable to Escrowee.

          (c) Except as  otherwise  provided  herein,  any other costs  incurred
     through the escrow shall be apportioned in the manner  customary in escrows
     of Escrowee in Los Angeles County, California.

          (d) If the  Close of Escrow  fails to occur by  reason of  Purchaser's
     exercise of its due diligence  contingency in accordance  with the terms of
     Section 4.1 hereof,  Purchaser  and Seller  shall each be  responsible  for
     one-half of all fees  payable to Escrowee  in  connection  with the Escrow,
     including,  without  limitation,  cancellation fees. If the Close of Escrow
     fails to occur by reason of the default of one of the parties hereto or the
     failure  of a  condition  precedent  to  Closing,  escrow  fees  payable to
     Escrowee  (including  escrow  cancellation  fees)  shall  be  borne  by the
     defaulting  party or the party who failed to satisfy the  condition  in the
     other party's  favor.  If the Close of Escrow fails to occur for any reason
     other than Purchaser's exercise of its due diligence contingency, a default
     by

<PAGE>

     either  party  hereto or a failure of  condition,  escrow  fees  payable to
     Escrowee shall be borne equally by Seller and Purchaser.

     3.5. Acknowledgment by Escrowee. Escrowee has acknowledged agreement to the
provisions  of Sections  3.2 and 3.3 above by signing in the place  indicated on
the signature page of this Agreement.

                              ARTICLE 4. INSPECTION
                              ---------------------

     4.1. Due Diligence Period;  Termination Right.  During the period (the "DUE
DILIGENCE  PERIOD")  commencing  on the Opening of Escrow and ending on December
15, 2000 (the "DUE DILIGENCE  EXPIRATION DATE"),  Purchaser shall have the right
to conduct such due diligence as it deems reasonably necessary or appropriate in
connection with its acquisition of the Property, including inspections, studies,
examinations  and  investigations  of, or with respect to, the Property,  or any
portion  thereof,  and/or any facts,  circumstances  and matters relating to the
Property,  or  any  portion  thereof.  If  Purchaser,  in its  sole  discretion,
determines that it is unsatisfied  with the results of and matters  disclosed by
its due diligence, Purchaser shall have the right to terminate this Agreement by
written  notice  given to  Seller  prior to 5:00  p.m.  New York time on the Due
Diligence  Expiration Date (TIME BEING OF THE ESSENCE).  Upon any termination of
this  Agreement  pursuant to this Section  4.1, the Escrow shall be  terminated,
whereupon  the Deposit  shall be refunded to Purchaser  and neither party hereto
shall have any further  obligation  to the other,  with the  exception  of those
obligations  which  expressly  survive the  termination  of this  Agreement.  If
Purchaser  shall fail to  terminate  this  Agreement  in the time and manner set
forth in this Section 4.1,  Purchaser shall be deemed to have irrevocably waived
its right to terminate this Agreement pursuant to this Section 4.1

     4.2.  Inspections.  Purchaser and its  authorized  agents,  consultants  or
representatives  shall have the right,  upon  reasonable  prior notice to Seller
(which notice may be  telephonic),  to enter upon the Premises from time to time
to conduct such physical and other  inspections as Purchaser deems  appropriate,
provided that Purchaser shall not perform Invasive Tests or interview tenants of
the Premises without first obtaining  Seller's consent,  which consent shall not
be unreasonably withheld,  and provided further that Purchaser's  investigations
shall be subject to the rights of  tenants  and shall not  materially  interfere
with Seller's operation of the Property. Prior to any entrance upon the Premises
for the  performance  of Invasive  Tests,  Purchaser  shall  deliver to Seller a
certificate of insurance evidencing that Purchaser has procured and maintains in
force and effect a comprehensive  general  liability  insurance  policy covering
Purchaser  and Seller  against  claims for  bodily  injury or death or  property
damage  occurring  in, upon or about the  Premises in an amount of not less than
$2,000,000 (combined single limit), issued by an insurance company with a rating
of "A-" or better as  established by Best's Rating Guide.  Such insurance  shall
include blanket  contractual  liability  coverage and shall otherwise be in form
reasonably  acceptable  to Seller.  Following  the  performance  of any Invasive
Tests,  Purchaser  shall  restore the Premises to their  condition  prior to the
performance thereof.  Purchaser shall indemnify, hold harmless and defend Seller
and its officers,  directors,  members, employees,  successors and assigns, from
and against any and all damages, losses, costs, expenses,  liabilities,  claims,
actions or proceedings which arise out of or in any way relate to the conduct of
its due  diligence  investigations.  The  provisions  of this  Section 4.2 shall
survive the termination of this Agreement.

<PAGE>

     4.3.  Confidentiality.  Prior to the Close of Escrow,  Purchaser  shall not
disclose to any other party  either the contents of any  materials  delivered to
Purchaser  by Seller with  respect to the Property or the results of any reports
summarizing any aspect of Purchaser's due diligence investigations without first
obtaining the prior written  consent of Seller.  Notwithstanding  the foregoing,
Purchaser may,  without first  obtaining such prior written  consent,  make such
disclosures  as it  deems  appropriate  to  its  officers,  employees,  lenders,
counsel,  lenders'  counsel,   appraisers,   accountants,   insurance  advisors,
environmental  consultants and similar  third-party  consultants,  provided that
such parties are apprised of the confidential  nature of the material disclosed.
The  provisions  of this  Section  4.3 shall  survive  the  termination  of this
Agreement.

                 ARTICLE 5. CLOSING DATE; CONDITIONS TO CLOSING
                 ----------------------------------------------

     5.1.  Closing Date. The Close of Escrow shall occur on January 2, 2001 (the
"CLOSING DATE"). TIME SHALL BE OF THE ESSENCE WITH RESPECT TO THE OBLIGATIONS OF
PURCHASER TO BE PERFORMED ON THE CLOSING DATE.

     5.2.  Purchaser's  Conditions.   Purchaser's  obligation  to  purchase  the
Property is subject to the satisfaction of the following  conditions  precedent,
any or all of which may be waived by Purchaser:

          (a)  Seller  shall  have   deposited   into  the  Escrow  an  estoppel
     certificate,  duly  executed  by the  lessor  under the  Ground  Lease,  in
     substantially  the form of  Exhibit M annexed  hereto  (the  "GROUND  LEASE
     ESTOPPEL CERTIFICATE");

          (b)  Seller  shall have  deposited  into the  Escrow  Tenant  Estoppel
     Certificates,  dated as of a date subsequent to the date of this Agreement,
     from the holders of the  tenant's  interest  under  Leases which demise not
     less than 100% of the rentable square footage demised as of the date hereof
     under the  Leases  (other  than the G. Ray  Hawkins  Lease,  as  defined in
     Exhibit C annexed  hereto).  If,  however,  Seller obtains Tenant  Estoppel
     Certificates  from the holders of the tenant's  interest under Leases equal
     to at least 70%, but less than 100%, of the rentable square footage demised
     under  the  Leases as of the date  hereof  (other  than the G. Ray  Hawkins
     Lease),  Seller may (but shall not be obligated  to) satisfy the  foregoing
     condition by executing and  delivering  into the Escrow a certificate  from
     Seller ("SELLER'S  ESTOPPEL  CERTIFICATE")  setting forth the matters which
     would have been set forth in Tenant Estoppel  Certificate(s) for any Leases
     selected by Seller and for which  Seller has been unable to obtain a Tenant
     Estoppel  Certificate,  to the extent  necessary to increase to 100% of the
     rentable  square footage  demised under Leases as of the date hereof (other
     than the G. Ray Hawkins Lease) for which a Tenant Estoppel  Certificate has
     been  obtained.   Not   withstanding  the  foregoing,   Seller's   Estoppel
     Certificate  may not  pertain  to the  Direct  Partners  Lease or the Santa
     Monica - Malibu School District Lease (each as defined in Exhibit C annexed
     hereto).   Any  Seller's   Estoppel   Certificate   shall  state  that  the
     representations made therein shall survive the Close of Escrow for a period
     of one year or until such earlier date on which the applicable tenant shall
     deliver to Purchaser a Tenant  Estoppel  Certificate.  For purposes of this
     Agreement,  the term "TENANT ESTOPPEL CERTIFICATE" shall mean a certificate
     substantially in the form of Exhibit N annexed hereto, provided that if any
     Lease  prescribes  the form or contents of an  estoppel  certificate  to be
     delivered  by the  tenant,  "TENANT  ESTOPPEL  CERTIFICATE"  shall  mean an
     estoppel  certificate in such form or containing such contents.  To satisfy
     the condition set forth in this Section 5.2(b), a

<PAGE>

     Tenant Estoppel  Certificate  (i) may not materially  contradict any of the
     representations  of Seller made in  Sections  7.3(b) or (c) hereof and (ii)
     may not allege a material default by the landlord under the Lease;

          (c) Seller's representations contained in Sections 7.3(a) - (g) hereof
     shall be true, complete and correct in all material respects, as made as of
     the date hereof and as of the Closing Date.  Notwithstanding the foregoing,
     if any representation  made by Seller in Section 7.3(a) - (g) hereof is not
     true,  complete and correct in all material respects as of the Closing Date
     by reason of any state of facts which is permitted or  contemplated by this
     Agreement,  such as Seller's entrance into a New Lease or termination of an
     Existing Lease or New Lease in accordance with the terms of this Agreement,
     then there shall be no failure of the  condition  set forth in this Section
     5.2(c) by reason thereof. In addition, if any representation made by Seller
     in Section  7.3(a) - (g) hereof is not true,  complete  and  correct in all
     material  respects as of the Closing Date, there shall be no failure of the
     condition  set  forth  in this  Section  5.2(c)  unless  Purchaser  is able
     reasonably  to  demonstrate  that such  failure of  condition  results in a
     diminution of the value of the Property which exceeds $50,000.

          (d) (i) this Agreement shall be in full force and effect,  (ii) Seller
     shall have fully  satisfied,  or shall therewith fully satisfy,  all of the
     obligations  of Seller  to be  performed  on the Close of Escrow  and (iii)
     there shall not otherwise then exist any event which would allow  Purchaser
     to terminate this Agreement pursuant to the express terms hereof.

     5.3.  Seller's  Conditions.  Seller's  obligation  to sell the  Property is
subject to the satisfaction of the following conditions precedent, any or all of
which may be waived by Seller:

          (a) Purchaser's  representations contained in Section 7.1 hereof shall
     be true,  complete and correct in all material respects,  as made as of the
     date hereof and as of the Closing Date; and

          (b) (i)  This  Agreement  shall  be in full  force  and  effect,  (ii)
     Purchaser shall have fully satisfied, or shall therewith fully satisfy, all
     of the obligations of Purchaser to be performed on the Close of Escrow, and
     (iii)  there  shall not  otherwise  then exist any event  which would allow
     Seller to terminate this Agreement pursuant to the express terms hereof.

     5.4. Failure of Condition Not a Breach.  The parties hereto acknowledge and
agree that the failure to occur of one or more conditions precedent contained in
this Article 5 shall not be deemed to  constitute a breach of this  Agreement by
either party  unless and to the extent that any such party shall have  expressly
agreed or covenanted or is otherwise  expressly  obligated hereunder to take any
action to satisfy or cause the satisfaction of the condition in question.

                         ARTICLE 6. CLOSING ADJUSTMENTS
                         ------------------------------

     The following are to be adjusted and prorated  between Seller and Purchaser
as of 11:59 p.m. on the day  preceding  the Closing  Date,  based upon a 365 day
year and the actual number of days  elapsed,  with Seller deemed to be the owner
of the Property on the day preceding the Closing Date and Purchaser deemed to be
the owner of the Property on the Closing Date.

<PAGE>

     6.1. Fixed Rents.

          (a) Fixed  rents  (collectively,  "FIXED  RENTS")  paid or  payable by
     tenants under the Leases in connection with their occupancy of the Premises
     shall be adjusted and prorated on an if, as and when collected  basis.  Any
     Fixed Rents  collected  by  Purchaser or Seller after the Closing Date from
     any tenant who owes Fixed Rents for periods prior to the Closing Date shall
     be applied (i) first, in payment of Fixed Rents owed by such tenant for the
     month in which the Closing Date occurs,  pro rated as of the Closing  Date,
     (ii)  second,  in payment of Fixed  Rents owed by such  tenant for  periods
     subsequent  to the month in which the Closing  Date occurs and (iii) third,
     after  Fixed  Rents for all  current  periods  have  been paid in full,  in
     payment of Fixed Rents owed by such  tenant for periods  prior to the month
     in which the Closing  Date  occurs.  Each such amount shall be adjusted and
     prorated as provided  above,  and the party who receives  such amount shall
     promptly pay over to the other party the portion  thereof to which it is so
     entitled.

          (b) Purchaser shall bill tenants who owe Fixed Rents for periods prior
     to the Closing Date on a monthly basis for a period of six (6)  consecutive
     months following the Closing Date (the "PURCHASER  COLLECTION Period").  If
     Purchaser shall be unable during the Purchaser Collection Period to collect
     such past due Fixed Rents,  Seller shall have the right, upon prior written
     notice to  Purchaser,  to pursue  tenants  to  collect  such  delinquencies
     (including,  without limitation,  the prosecution of one or more lawsuits),
     but  Seller  shall not be  entitled  to evict (by  summary  proceedings  or
     otherwise) any such tenants.

          (c) Any  payment by a tenant in an amount less than the full amount of
     Fixed Rents and Overage Rents (hereinafter defined) then due and payable by
     such tenant shall be applied first to Fixed Rents (in the order of priority
     as to time periods set forth in Section  6.1(a) above) to the extent of all
     such Fixed Rents then due and payable by such tenant, and second to Overage
     Rents,  in the order of  priority  as to time  periods set forth in Section
     6.2(d) below.

     6.2. Overage Rents.

          (a) With  respect to any Lease that  provides  for the  payment of (i)
     so-called  percentage  rent or additional  rents which are  calculated as a
     percentage of the tenant's sales or gross sales (net of certain agreed-upon
     deductions),  (ii) so-called common area maintenance or "cam" charges, (ii)
     so-called "escalation rent" or additional rent based upon increases in real
     estate  taxes or  operating  expenses  or labor  costs or cost of living or
     otherwise  (such  percentage   rent,  cam  charges,   escalation  rent  and
     additional rent being  collectively  called "OVERAGE RENTS"),  such Overage
     Rents shall be adjusted and prorated on an if, as and when collected basis.

          (b) As to any Overage  Rents in respect of an  accounting  period that
     shall have  expired  prior to the  Closing  Date but which shall be payable
     after the Closing Date, Purchaser agrees that it will pay the entire amount
     over to Seller upon  receipt  thereof.  Purchaser  agrees that it shall (i)
     promptly  render  bills for any Overage  Rents in respect of an  accounting
     period  that shall have  expired  prior to the  Closing  but which shall be
     payable  after  the  Closing  and (ii)  bill  tenants  such  Overage  Rents
     attributable  to an accounting  period that shall have expired prior to the
     Closing on a monthly  basis  during the  Purchaser  Collection  Period.  If
     Purchaser  shall be  unable  to  collect  such  Overage  Rents  during  the
     Purchaser  Collection  Period,  Seller  shall  have the  right,  upon prior
     written   notice  to   Purchaser,   to  pursue   tenants  to  collect  such
     delinquencies (including, without limitation, the

<PAGE>

     prosecution of one or more  lawsuits),  but Seller shall not be entitled to
     evict (by summary proceedings or otherwise) any such tenants.  Seller shall
     furnish Purchaser with all information  relating to the period prior to the
     Closing Date that is reasonably necessary for the billing of Overage Rents;
     and  Purchaser  will deliver to Seller,  concurrently  with the delivery to
     tenants,  copies of all  statements  relating to Overage Rents for a period
     prior to the Closing Date.  Purchaser  shall bill tenants for Overage Rents
     for accounting  periods prior to the Closing Date in accordance with and on
     the basis of such information furnished by Seller.

          (c)  Overage  Rents in respect of the  accounting  period in which the
     Closing Date occurs shall be  apportioned as of the Closing Date. If, prior
     to the Closing Date, Seller shall receive any installments of Overage Rents
     attributable  to Overage Rents for periods from and after the Closing Date,
     such sum shall be  apportioned  at the  Closing.  If,  after  the  Closing,
     Purchaser shall receive any  installments of Overage Rents  attributable to
     Overage Rents for periods prior to the Closing Date, such sum shall be paid
     by Purchaser to Seller promptly after Purchaser receives payment thereof.

          (d) Any payment by a tenant on account of Overage Rents (to the extent
     not  applied  against  Fixed  Rents  due  and  payable  by such  tenant  in
     accordance  with Section  6.1(c)  above) shall be applied to Overage  Rents
     then due and payable in the  following  order of  priority:  (i) first,  in
     payment  of  Overage  Rents for the  accounting  period  subsequent  to the
     accounting  period in which the  Closing  Date occurs and (ii)  second,  in
     payment of Overage  Rents for the  accounting  period in which the  Closing
     Date occurs, apportioned as of the Closing Date.

          (e) To the extent that any portion of Overage  Rents is required to be
     paid  monthly by tenants on account of  estimated  amounts for any calendar
     year (or, if applicable, any lease year or tax year or any other applicable
     accounting  period),  and at the end of such  calendar year (or lease year,
     tax year or other applicable  accounting  period, as the case may be), such
     estimated  amounts are to be recalculated  based upon the actual  expenses,
     taxes and other relevant  factors for that calendar  (lease or tax) year or
     other applicable accounting period, with the appropriate  adjustments being
     made with such  tenants,  then such  portion of the Overage  Rents shall be
     prorated  between Seller and Purchaser at the Close of Escrow based on such
     estimated  payments actually paid by tenants (i.e., with Seller entitled to
     retain all monthly or other periodic  installments  of such amounts paid by
     tenants  with  respect  to  periods  prior to the  calendar  month or other
     applicable  installment period in which the Closing Date occurs,  Seller to
     pay to  Purchaser  at the Close of Escrow  all  monthly  or other  periodic
     installments of such amounts theretofore received by Seller with respect to
     periods following the calendar month or other applicable installment period
     in which the Closing  Date occurs and Seller and  Purchaser to apportion as
     of the Closing  Date all  monthly or other  periodic  installments  of such
     amounts  paid by  tenants  with  respect  to the  calendar  month  or other
     applicable  installment  period in which the Closing Date  occurs).  At the
     time(s) of final calculation and collection from (or refund to) each tenant
     of the amounts in  reconciliation  of actual Overage Rents for a period for
     which estimated amounts paid by such tenant have been prorated, there shall
     be a re-proration  between  Seller and  Purchaser.  If, with respect to any
     tenant, the recalculated Overage Rents exceeds the estimated amount paid by
     such tenant,  upon collection from the tenant,  (i) the entire excess shall
     be paid by Purchaser  to Seller,  if the  accounting  period for which such
     recalculation  was made  expired  prior to the  Closing  Date and (ii) such
     excess shall be apportioned  between Seller and Purchaser as of the Closing
     Date, if the Closing Date occurred  during the accounting  period for which
     such recalculation was made, with Purchaser paying to Seller the

<PAGE>

     portion of such excess  which  Seller is so  entitled to receive.  If, with
     respect to any tenant,  the  recalculated  Overage  Rents are less than the
     estimated  amount paid by such tenant,  (i) the entire  shortfall  shall be
     paid by Seller to Purchaser (or, at Seller's option, directly to the tenant
     in question),  if the accounting  period for which such  recalculation  was
     made  expired  prior to the Closing Date and (ii) such  shortfall  shall be
     apportioned  between  Seller and  Purchaser as of the Closing  Date, if the
     Closing  Date  occurred  during  the  accounting   period  for  which  such
     recalculation  was made,  with Seller paying to Purchaser  (or, at Seller's
     option,  directly to the tenant in question) the portion of such  shortfall
     so allocable to Seller.

          (f) Until such time as all  amounts  required  to be paid to Seller by
     Purchaser pursuant to Section 6.1 and this Section 6.2 shall have been paid
     in full, Purchaser shall furnish to Seller not less frequently than monthly
     a reasonably  detailed  accounting  of such amounts  payable by  Purchaser,
     which  accounting  shall be  delivered  to  Seller  on the 25th day of each
     calendar  month  from and after  the  calendar  month in which the  Closing
     occurs. Seller shall have the right from time to time following the Closing
     Date,  on Business  Days and upon  reasonable  prior  notice to Seller,  to
     review Purchaser's rental records with respect to the Property to ascertain
     the accuracy of such accounting.

     6.3. Security Deposits. Seller shall credit against the Closing Payment the
security  deposits held by Seller as landlord  under the Leases  (together  with
accrued interest thereon,  if any).  Notwithstanding  the foregoing,  any tenant
security  deposits  held in a form  other  than  cash  shall be  transferred  to
Purchaser by way of appropriate instruments of transfer or assignment.

     6.4. Real Estate Taxes. Real estate taxes shall be adjusted and prorated on
the basis of the fiscal year for which  assessed.  If the Close of Escrow  shall
occur  before the tax rate or  assessed  valuation  is fixed for either the 16th
Street  Premises or the Colorado  Avenue  Premises,  the  apportionment  of real
estate taxes for such  premises  shall be upon the basis of the tax rate for the
preceding  year applied to the most recently  applicable  assessed  valuation of
such premises,  subject to further and final adjustment when the tax rate and/or
assessed  valuation for such premises is fixed for the year in which the Closing
Date occurs.  In the event that either the 16th Street  Premises or the Colorado
Avenue  Premises  shall be or shall  have  been  affected  by an  assessment  or
assessments,  whether or not the same  become  payable  in annual  installments,
Seller shall, at the Close of Escrow,  be responsible for any  installments  due
prior  to  the  Closing  Date  and  Purchaser   shall  be  responsible  for  any
installments due on or after the Closing Date.

     6.5.  Utility  Charges.  Seller  shall  use  reasonable  efforts  to obtain
readings of meters  measuring  utility  consumption at the Premises  (other than
utilities which are the  responsibility of tenants under Leases) for all periods
through (and  including) the date preceding the Closing Date.  Seller shall pay,
and be  responsible,  for all bills rendered on the basis of such  readings.  If
such  readings are not obtained for any metered  utility,  then, at the Close of
Escrow,  apportionment  shall be made on the basis of the most recent period for
which  such  readings  are  available.  Upon the  taking  of  subsequent  actual
readings,  there shall be a recalculation of the applicable utility charges, and
Seller or Purchaser, as the case may be, shall promptly remit to the other party
hereto  any  amounts to which such  party  shall be  entitled  by reason of such
recalculation.  Unmetered  water charges or sewer rents shall be  apportioned on
the basis of the  charges  therefor  for the same  period  during  the  previous
calendar year, but applying the current rate thereto.  As to any utility charges
or sewer rents  payable by tenants,  Purchaser  shall close title and accept the
Property subject to such

<PAGE>

unpaid  charges  and  rents and any lien  resulting  therefrom,  without  credit
against the  Purchase  Price or any claim or right of action  against  Seller by
reason thereof.

     6.6.  Ground  Rent.  Base rent and  additional  rent under the Ground Lease
shall be adjusted as of 11:59 p.m. on the date preceding the Closing Date.

     6.7. Fuel. Fuel on hand, if any, based on an estimate  provided by Seller's
fuel  supplier,  at Seller's cost valued at the price  therefor  charged by such
supplier including any applicable taxes.

     6.8. Other  Adjustments.  The following  items shall also be adjusted as of
11:59 P.M. on the date  preceding  the Closing  Date:  (i) charges and  payments
under Service Contracts assigned to Purchaser;  (ii) fees and payments,  if any,
under  Licenses  and Permits  assigned to  Purchaser;  (iii)  revenues,  if any,
arising out of telephone  booths,  vending machines,  or other  income-producing
agreements;  and (iv)  maintenance  supplies  in  unopened  containers  based on
Seller's  actual cost  therefor,  including  sales and/or use tax.

     6.9. Closing Statement.  At the Close of Escrow, Seller and Purchaser shall
mutually  execute and deliver to each other a closing  statement  setting  forth
with  reasonable  specificity  the  apportionments  made in accordance with this
Article 6.

     6.10.  Survival.  Any errors or omissions in computing  adjustments  at the
Close of Escrow shall be promptly corrected,  provided that the party seeking to
correct such error or omission shall have notified the other party of such error
or omission on or prior to the date that is one (1) year after the Closing Date.

                   ARTICLE 7. REPRESENTATIONS AND WARRANTIES
                   -----------------------------------------

     7.1. Basic Representations of Purchaser.

     Purchaser,  as of the date  hereof,  represents  and  warrants to Seller as
follows:

          (a) Purchaser is a corporation,  duly organized,  validly existing and
     in good standing under the laws of the State of Nebraska.

          (b)  Purchaser  has full power and authority to enter into and perform
     this Agreement, the documents to be executed and delivered pursuant hereto,
     and each and all of the  transactions  contemplated  hereby and  thereby in
     accordance with the terms hereof and thereof.

          (c) The individuals executing this Agreement and each of the documents
     to be executed and delivered in connection  herewith on behalf of Purchaser
     have full power and  authority  to do so.  This  Agreement  and each of the
     documents to be executed and delivered by Purchaser in connection  herewith
     are, or will be when executed and delivered,  the legal,  valid and binding
     obligations of Purchaser,  enforceable against Purchaser in accordance with
     the terms hereof and thereof.

          (d) Purchaser has not filed any petition seeking or acquiescing in any
     reorganization,   arrangement,  composition,   readjustment,   liquidation,
     dissolution  or similar  relief  under any law  relating to  bankruptcy  or
     insolvency, nor has any such petition been filed against

<PAGE>

     Purchaser.   Purchaser  is  not  insolvent  and  the  consummation  of  the
     transactions  contemplated  by this  Agreement  shall not render  Purchaser
     insolvent.  No general assignment of Purchaser's property has been made for
     the benefit of creditors,  and no receiver,  master,  liquidator or trustee
     has been appointed for Purchaser or any of its property.

          (e) There are no actions or  proceedings  pending  or, to  Purchaser's
     actual knowledge, threatened, against Purchaser which could have a material
     adverse affect on Purchaser's ability to perform its obligations hereunder.

     7.2. Basic Representations of Seller.

     Seller,  as of the date  hereof,  represents  and  warrants to Purchaser as
follows:

          (a) Seller is a limited liability company,  duly organized and validly
     existing and in good standing under the laws of the State of Delaware.

          (b) Seller has full power and authority to enter into and perform this
     Agreement  and to enter into the  documents  to be executed  and  delivered
     pursuant hereto, and each and all of the transactions  contemplated  hereby
     and thereby in accordance with the terms hereof and thereof.

          (c) The individuals executing this Agreement and each of the documents
     to be executed  and  delivered in  connection  herewith on behalf of Seller
     have full power and  authority  to do so.  This  Agreement  and each of the
     documents to be executed and delivered in connection  herewith are, or will
     be when executed and delivered, the legal, valid and binding obligations of
     Seller,  enforceable against Seller in accordance with the terms hereof and
     thereof.

          (d) Seller has not filed any petition  seeking or  acquiescing  in any
     reorganization,   arrangement,  composition,   readjustment,   liquidation,
     dissolution  or similar  relief  under any law  relating to  bankruptcy  or
     insolvency,  nor has any such petition been filed against Seller. Seller is
     not insolvent and the consummation of the transactions contemplated by this
     Agreement  shall not render  Seller  insolvent.  No general  assignment  of
     Seller's  property  has been  made for the  benefit  of  creditors,  and no
     receiver,  master,  liquidator or trustee has been  appointed for Seller or
     any of its property.

          (e) There are no actions or proceedings pending or, to Seller's actual
     knowledge,  threatened,  against Seller which could have a material adverse
     affect on Seller's ability to perform its obligations hereunder.

     7.3. Representations of Seller Regarding the Property.

     Seller,  as of the date  hereof,  represents  and  warrants to Purchaser as
follows:

          (a) The  Ground  Lease is in full  force and  effect  and has not been
     modified except as set forth in Exhibit A annexed  hereto.  The copy of the
     Ground  Lease  furnished  by  Seller to  Purchaser  is true,  complete  and
     correct.  No written  notice of a default on the part of Seller,  as lessee
     under the Ground Lease,  has been  received by Seller,  other than a notice
     which pertains to a default which, as

<PAGE>

     of the date hereof,  has been cured.  No written notice of a default on the
     part of the lessor  under the Ground  Lease has been sent by Seller,  other
     than a notice  setting forth a default  which,  as of the date hereof,  has
     been cured. To Seller's actual knowledge,  neither Seller nor ground lessor
     is in material default of any of the terms,  covenants or conditions of the
     Ground  Lease.  Seller has made  payments of fixed rent  payable  under the
     Ground Lease through December 31, 2000.

          (b) There are no leases,  licenses or occupancy  agreements  affecting
     the  Premises,  other than the Ground  Lease and the Existing  Leases.  The
     Existing  Leases  have not been  modified  except as set forth in Exhibit C
     annexed hereto.  The copies of the Existing  Leases  furnished by Seller to
     Purchaser are true, complete and correct. The information  contained in the
     rent roll annexed hereto as Exhibit O is true, complete and correct. Except
     as otherwise  noted in Exhibit P annexed  hereto,  (i) each of the Existing
     Leases is in full force and effect,  (ii) no written notice of a default on
     the part of a tenant  under  any of the  Existing  Leases  has been sent by
     Seller,  other than a notice setting forth a default which,  as of the date
     hereof, has been cured, (iii) no written notice of a default on the part of
     the landlord under the Existing  Leases has been received by Seller,  other
     than a notice  setting forth a default  which,  as of the date hereof,  has
     been cured and (iv) no tenant under an Existing  Lease is in arrears in the
     payment of Fixed Rent or monthly  installments of Overage Rent for a period
     in excess of thirty days.

          (c) Subject to the provisions of Section 13.6 hereof,  Seller has paid
     (or will on or before  the Close of Escrow  pay) all  Leasing  Costs  which
     pertain  to the  current  terms of the  Leases,  other than  Leasing  Costs
     payable in  connection  with (A) the  renewal or  extension  of an Existing
     Lease  or a New  Lease,  the  effective  date of which  shall  not yet have
     occurred  on the date  hereof,  (B) the  leasing of space  pursuant  to the
     exercise  of a right  of first  refusal  or first  offer or  similar  right
     contained in an Existing Lease or a New Lease,  the effective date of which
     shall not yet have  occurred on the date hereof and (C) the failure  timely
     to exercise any  termination  right set forth in an Existing Lease or a New
     Lease  at  any  time  after  the  date  hereof  (any  such  transaction,  a
     "Contingent Commission Event".)

          (d) There are no service contracts, brokerage agreements,  maintenance
     agreements or other agreements  affecting the Premises,  other than (i) the
     Ground Lease, (ii) the Existing Leases, (ii) the Existing Service Contracts
     and (iii) any service  contracts which are terminable upon not more than 30
     days notice without penalty or premium. The Existing Service Contracts have
     not been  modified  except as set forth in  Exhibit D annexed  hereto.  The
     copies of the Existing Service  Contracts  furnished by Seller to Purchaser
     are true, complete and correct.

          (e)  Except as  disclosed  on Exhibit P annexed  hereto,  there are no
     actions  or  proceedings   pending  or,  to  Seller's   actual   knowledge,
     threatened, with respect to the Property.

          (f)  There  are no  pending  or, to  Seller's  knowledge,  threatened,
     eminent domain or condemnation proceedings with respect to the Property.

          (g) To Seller's actual knowledge, there are no Violations which remain
     uncured, other than the Violations noted on Exhibit P-1 annexed hereto.

          (h) The insurance  coverages with respect to the Premises described in
     Exhibit Q annexed hereto are in full force and effect.

<PAGE>

     For  purposes of this Section 7.3,  the term  "Seller's  actual  knowledge"
shall mean the actual  knowledge of William H. Darrow.  The  representations  of
Seller  contained in Sections 7.3 (a)-(c)  hereof shall survive  Closing for one
year. The  representations  of Seller  contained in Sections  7.3(d)-(g)  hereof
shall survive Closing for six (6) months.

                                ARTICLE 8. TITLE
                                ----------------

     8.1.  Acceptable Title.  Seller shall convey, or cause to be conveyed,  and
Purchaser shall accept, title to the Premises,  at the Close of Escrow,  subject
to the  Permitted  Exceptions.  The  term  "PERMITTED  EXCEPTIONS"  shall  mean,
collectively,  (i) the matters set forth in Exhibit R annexed hereto, (ii) Title
Exceptions that Title Insurer shall be willing to omit as exceptions to coverage
in Purchaser's owner's policy of title insurance or any lender's policy of title
insurance  obtained by Purchaser,  (iii) the standard  exceptions and provisions
contained in the form of insuring  agreement  employed by Title  Insurer,  other
than those  standard  exceptions  which may be deleted by  Seller's  delivery to
Title  Insurer of a customary  and  reasonable  affidavit  of title and (iv) any
exceptions and matters that are approved, waived or deemed to have been approved
or waived by Purchaser.

     8.2. Inability to Convey Acceptable Title.

          (a) Purchaser  acknowledges  receipt from Seller of (i) a title report
     for the Premises, prepared by Title Insurer and dated October 27, 2000 (the
     "TITLE REPORT"),  together with copies of all of the instruments referenced
     therein  and  (ii) a survey  of the  16th  Street  Premises,  last  redated
     10/08/98,  prepared by Daniel P. MacNeil, Licensed Land Surveyor, and (iii)
     a survey of the Colorado Avenue Premises,  last redated 10/20/98,  prepared
     by John E. Coombs,  Licensed  Land  Surveyor  (the surveys set forth in the
     foregoing  clauses  (ii)  and  (iii)  are  hereinafter  referred  to as the
     "Surveys"). On or before the date which is five (5) Business Days after the
     Opening of Escrow,  Purchaser  shall  furnish  Seller  with  updates of the
     Surveys sufficient to obtain Title Insurer's agreement to delete the survey
     exceptions  set forth in the Title Report and  substitute  therefor  survey
     readings.

          (b) Purchaser  acknowledges that the Title Exceptions disclosed in the
     Title  Report  and the  Surveys  and set  forth  in  Exhibit  R  constitute
     Permitted  Exceptions.  Within two (2) Business Days of Purchaser's receipt
     of any  supplement to the Title Report or any update of the Surveys,  (TIME
     BEING OF THE ESSENCE),  Purchaser may furnish Seller with written notice (a
     "TITLE  OBJECTION  NOTICE") of Title Exceptions noted therein which are not
     Permitted Exceptions and as to which Purchaser objects, provided such Title
     Exceptions  were not noted in the Title  Report or the Surveys or any prior
     supplement  or update  thereof.  Purchaser  shall be deemed to have  waived
     objection to Title  Exceptions set forth in any supplement or update of the
     Title  Reports or the Surveys to which  timely  objection  is not made in a
     Title Objection Notice.

     8.3. Seller's Rights.  Seller shall have the right, in its sole discretion,
upon notice to Purchaser  (the "TITLE  RESPONSE  NOTICE")  given within ten (10)
days after Seller's  receipt of any Title Objection  Notice,  to either (i) take
such action as Seller deems advisable to discharge those Title  Exceptions which
are not Permitted  Exceptions and are set forth in a Title  Objection  Notice or
(ii) subject to the provisions of Section 8.4 hereof,  terminate this Agreement,
whereupon the Escrow shall be  terminated.  Upon such  termination,  the Deposit
shall be refunded to Purchaser  and  thereafter  neither party hereto shall have
any further obligation to the other party, with the exception

<PAGE>

of those  obligations which expressly survive the termination of this Agreement.
If Seller fails timely to deliver the Title Response Notice,  Seller, subject to
the  provisions  of  Section  8.4  hereof,  shall be deemed to have  elected  to
terminate this Agreement  pursuant to clause (ii) above. If Seller, in its Title
Response  Notice,  elects to take  action to remove,  remedy or comply  with any
Title Exception set forth in a Title Objection Notice,  Seller shall be entitled
to an adjournment or adjournments  of the Close of Escrow,  not to exceed thirty
(30) days in the aggregate. If Seller is unable to remove, remedy or comply with
such Title Exceptions at the expiration of such adjournment(s), then, subject to
the  provisions  of Section 8.4  hereof,  this  Agreement  shall be deemed to be
terminated  as of the last  adjourned  date of the  Close of  Escrow.  Upon such
termination, the Deposit shall be refunded to Purchaser and neither party hereto
shall have any further  obligation  to the other  party,  with the  exception of
those  obligations  which  expressly  survive the termination of this Agreement.
Except as set forth in Section 8.5 hereof,  nothing in this  Agreement  shall be
deemed to require  Seller to take or bring any action or proceeding or any other
steps to remove  any  defect in or  objection  to title or to expend  any moneys
therefor, nor shall Purchaser have any right of action against Seller, at law or
in equity, therefor.

     8.4. Purchaser's Right to Accept Title.  Purchaser may, upon written notice
to Seller at any time on or before the  Closing  Date (as the same may have been
adjourned by Seller in  accordance  with the  provisions  of Section 8.3 above),
elect to accept such title as Seller can convey,  notwithstanding  the existence
of any Title Exceptions which are not Permitted  Exceptions.  In such event, (i)
this Agreement shall remain in force and effect,  (ii) the parties shall proceed
to Closing and (iii)  Purchaser  shall not be entitled to any  abatement  of the
Purchase  Price,  any credit or  allowance  of any kind or any claim or right of
action against Seller for damages or otherwise by reason of the Title Defects.

     8.5.  Seller's  Obligation.  Notwithstanding  anything  contained  in  this
Article  8 to the  contrary,  Seller  shall at or prior to the  Close of  Escrow
discharge (i) any mortgage or deed of trust  affecting  the  Premises,  (ii) any
Title  Exception  which  is  knowingly  and  intentionally   created  by  Seller
subsequent  to the date hereof or (iii) any other Title  Exception  which may be
discharged solely by the payment of a sum of money, not to exceed $250,000.00 in
the aggregate.

     8.6. Title Affidavits, Etc.

          (a) If requested  by Title  Insurer,  Seller shall  deliver (i) one or
     more  reasonable and customary title  affidavits  executed by Seller (or an
     officer  thereof),  certifying to factual matters  concerning Seller or the
     Premises  which are  within  the  knowledge  of Seller  and (ii)  documents
     evidencing Seller's payment of franchise or unincorporated  business taxes,
     as applicable.

          (b) If requested by Title Insurer, Purchaser shall deliver one or more
     reasonable  and  customary  title  affidavits  executed by Purchaser (or an
     officer thereof), certifying to factual matters concerning Purchaser or the
     Premises which are within the knowledge of Purchaser.

     8.7.  Title  Policy.  Upon the Close of Escrow,  Seller  shall  cause Title
Insurer  to  issue to  Purchaser  an ALTA  owner's  policy  of title  insurance,
insuring  Purchaser's interest in the Ground Lease subject only to the Permitted
Exceptions,  with a limit of liability in the amount of the Purchase  Price (the
"Title  Policy").  The  issuance  of the  Title  Policy  shall be in lieu of any
express or implied warranty of Seller  concerning  Purchaser's  leasehold title.
Purchaser  agrees that its only remedy  arising by reason of any defect in title
shall be against the Title Company.  Purchaser's acceptance of the Assignment of
Ground  Lease  and  the  issuance  of  the  Title  Policy  to  Purchaser   shall
conclusively  establish  that  Seller  conveyed  the  Property to  Purchaser  as
required by this  Agreement  and shall  discharge in full  Seller's  obligations
under this Article 8.

                      ARTICLE 9. CASUALTY AND CONDEMNATION
                      ------------------------------------

     9.1. Casualty.

          (a) For purposes of this Article 9, the following terms shall have the
     meanings indicated:

               "MAJOR  CASUALTY"  means  a  fire  in or  other  casualty  to the
          Improvements  which causes  damage or injury to the  Improvements  and
          results in Restoration Costs in excess of $200,000.

               "RESTORATION  COSTS"  means  the cost to repair  or  restore  (as
          reasonably  determined by an architect or engineer  selected by Seller
          and approved by Purchaser,  which approval  shall not be  unreasonably
          withheld,  conditioned  or  delayed)  the  damage to the  Improvements
          caused by a fire or other casualty,  exclusive of the cost of any such
          repair or  restoration  for which  Seller,  as the landlord  under any
          Lease, is not responsible.

          (b) If,  between  the date hereof and the  Closing  Date,  there shall
     occur a fire or other casualty  affecting the  Improvements  which is not a
     Major  Casualty,  then  Purchaser  shall  have no right to  terminate  this
     Agreement and shall purchase the Property in its damaged  condition without
     reduction  of or offset  against  the  Purchase  Price or any  other  claim
     against  Seller.  Seller shall assign to Purchaser the right to receive any
     insurance  proceeds  payable  to  Seller  as a result of such fire or other
     casualty;  provided,  however,  that Seller shall be entitled to retain (to
     the extent  theretofore  paid to  Seller),  and shall not be  obligated  to
     assign the right to receive (to the extent not theretofore paid to Seller),
     an amount of such insurance  proceeds equal to Seller's  expenses,  if any,
     incurred in  collecting  such  proceeds and  repairing the damage caused by
     fire or other casualty.

          (c) If,  between  the date hereof and the  Closing  Date,  there shall
     occur a fire or other casualty  affecting the Improvements which is a Major
     Casualty,  then Purchaser shall have the option,  to be exercised by notice
     given to Seller within  fifteen (15) days after the date of such  casualty,
     to terminate this Agreement.  If Purchaser shall so elect to terminate this
     Agreement,  the Escrow shall be terminated,  whereupon the Deposit shall be
     refunded to  Purchaser  and  neither  party  hereto  shall have any further
     obligation to the other hereunder,  with the exception of those obligations
     which expressly  survive the  termination of this  Agreement.  If Purchaser
     shall not elect to terminate  this  Agreement as provided in this subclause
     (c),  then this  Agreement  shall  remain in full  force and effect and the
     provisions  of Section  9.1(b)  above  shall  apply to such  damage and any
     insurance proceeds payable in connection therewith.

          (d) In no event shall Seller have any  obligation to repair any damage
     or destruction to the  Improvements,  but Seller shall have the right to do
     so and utilize insurance proceeds for such purpose.

<PAGE>

          (e) Seller and Purchaser  expressly intend that the provisions of this
     Section 9.1 shall govern in the event of a fire or other casualty.

     9.2.  Condemnation.  If,  between the date hereof and the Closing Date, any
condemnation or eminent domain proceedings are initiated which would result in a
total or partial  taking of the Premises,  Purchaser may elect to terminate this
Agreement  by giving  written  notice of its  election to the other party within
fifteen  (15)  days  after  receiving  notice  of such  prospective  taking.  If
Purchaser  shall so elect to  terminate  this  Agreement,  the  Escrow  shall be
terminated,  whereupon the Deposit  shall be refunded to Purchaser,  and neither
party hereto shall have any further obligation to the other hereunder,  with the
exception of those  obligations  which expressly survive the termination of this
Agreement.  If Purchaser  does not so elect to  terminate  this  Agreement,  the
parties  hereto shall close Escrow  without  reduction of or offset  against the
Purchase Price and Purchaser shall have no other claim against  Seller.  In such
event,  all of Seller's  right,  title and  interest in and to any  condemnation
proceeds paid or payable in connection therewith shall be assigned to Purchaser.
In no event shall Seller have any  obligation  to repair or restore the Premises
or any portion thereof by reason of any condemnation.

                        ARTICLE 10. DEFAULT AND REMEDIES
                        --------------------------------

     10.1. Default By Purchaser.  IF PURCHASER(I) DEFAULTS IN THE PERFORMANCE OF
ANY OF ITS  OBLIGATIONS TO BE PERFORMED AT THE CLOSE OF ESCROW OR (II) OTHERWISE
MATERIALLY  DEFAULTS  HEREUNDER  AND SUCH  DEFAULT IS NOT CURED WITHIN FIVE DAYS
AFTER NOTICE  THEREOF FROM SELLER TO PURCHASER,  THEN SELLER MAY TERMINATE  THIS
AGREEMENT,  WHEREUPON  THE ESCROW  SHALL BE  TERMINATED  AND THE DEPOSIT PAID TO
SELLER AS LIQUIDATED  DAMAGES ON ACCOUNT OF SUCH  DEFAULT.  SELLER AND PURCHASER
HEREBY  ACKNOWLEDGE  AND  AGREE  THAT THE  DAMAGES  TO  SELLER  IN THE  EVENT OF
PURCHASER'S  DEFAULT WOULD BE EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN
AND THAT THE  DEPOSIT IS A  REASONABLE  ESTIMATE OF THE DAMAGES TO SELLER IN THE
EVENT OF PURCHASER'S DEFAULT, SUCH DAMAGES INCLUDING THE COST OF PREPARING,  AND
NEGOTIATING THE TERMS OF, THIS AGREEMENT,  COSTS OF SATISFYING THE CONDITIONS TO
PURCHASER'S  OBLIGATION  TO  PROCEED  TO THE CLOSE OF  ESCROW,  COSTS OF SEEKING
ANOTHER PURCHASER UPON PURCHASER'S DEFAULT, OPPORTUNITY COSTS IN WITHDRAWING THE
PROPERTY  FROM THE MARKET,  AND OTHER COSTS  INCURRED  IN  CONNECTION  HEREWITH.
PURCHASER  AND SELLER  AGREE THAT THE DEPOSIT  SHALL BE THE SOLE DAMAGES AND THE
SOLE AND EXCLUSIVE REMEDY OF SELLER, LEGAL, EQUITABLE OR OTHERWISE, IN THE EVENT
OF ANY  DEFAULT OF  PURCHASER.  BY PLACING  THEIR  INITIALS  BELOW,  THE PARTIES
ACKNOWLEDGE  THAT THE DEPOSIT HAS BEEN  AGREED UPON AS THE  PARTIES'  REASONABLE
ESTIMATE OF SELLER'S DAMAGES AND AS SELLER'S EXCLUSIVE REMEDY AGAINST PURCHASER,
AT LAW OR IN EQUITY,  IN THE EVENT OF A DEFAULT UNDER THIS AGREEMENT ON THE PART
OF PURCHASER. NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL THE PROVISIONS OF
THIS  SECTION  10.1 LIMIT ANY RIGHTS OR  REMEDIES  OF SELLER  WHICH MAY ARISE BY
REASON  OF A BREACH OF THE  INDEMNITY  OBLIGATIONS  OF  PURCHASER  CONTAINED  IN
SECTION 4.2 HEREOF, ALL OF WHICH ARE EXPRESSLY RESERVED.

INITIALS OF PURCHASER:                      INITIALS OF SELLER:
                      --------------                           --------------

     10.2.  Default by Seller.  If Seller (i)  defaults  in the  obligations  of
Seller to be  performed  at the Close of  Escrow  or (ii)  otherwise  materially
defaults  hereunder and such material  Default is not cured within ten (10) days
after notice thereof from  Purchaser to Seller,  then, and in either such event,
Purchaser  may,  as its sole  remedy  therefor,  either (x) pursue an action for
specific  performance of this Agreement by Seller hereunder,  without abatement,
credit  against  or  reduction  of the  Purchase  Price  or (y)  terminate  this
Agreement by written  notice to Seller and Escrowee,  whereupon the Escrow shall
be  terminated  and the  Deposit  shall  be  refunded  to  Purchaser;  it  being
understood  and agreed  that in no event  shall  Purchaser  be entitled to money
damages.  If Purchaser  shall elect to so terminate this  Agreement,  then, upon
such  election,  neither  party  shall have any  further  rights or  obligations
hereunder  other than those  which  expressly  survive the  termination  of this
Agreement.  Except as expressly provided in this Section 10.2,  Purchaser waives
any other right or remedy,  at law or in equity,  which Purchaser may have or be
entitled to as a result of any default by Seller.

     10.3.  Breach of  Representation.  If  Purchaser  proceeds to Closing  with
knowledge of any inaccuracy in a  representation  of Seller,  Purchaser shall be
deemed to have waived  objection to such  inaccuracy  and shall have no right of
action or claim against Seller for damages or otherwise by reason  thereof.  If,
after  the  Closing,  Purchaser  shall  first  learn  of an  inaccuracy  in  any
representation  of Seller (made as of the Closing  Date),  which  representation
expressly  survives  Closing,  then Purchaser  shall have a claim for damages on
account  thereof,  provided that (i) any claim not brought within the applicable
survival period shall be deemed waived,  (ii) Purchaser  hereby waives the right
to  collect or seek to  collect  consequential  or  punitive  damages  and (iii)
Purchaser  reasonably can demonstrate that the damages sustained by Purchaser as
a result of such inaccuracy exceed $50,000.

                               ARTICLE 11. BROKER
                               ------------------

     11.1. Broker.  Seller and Purchaser each represent and warrant to the other
that each has had no  conversations  or  dealings  with any  broker or finder in
connection  with  the  transactions  contemplated  hereby,  other  than  Broker.
Purchaser and Seller (each, an "INDEMNIFYING PARTY") shall indemnify, defend and
hold the other  harmless  from and  against  any and all loss,  cost or  expense
(including, without limitation, reasonable attorneys' fees) arising by reason of
a claim for a commission or other compensation made by a broker or finder (other
than Broker) claiming to have dealt with the Indemnifying  Party. The provisions
of this Article 11 shall survive Closing or any termination of this Agreement.

                             ARTICLE 12. ASSIGNMENT
                             ----------------------

     12.1. No Assignment  by  Purchaser.  Neither this  Agreement nor any of the
rights of Purchaser hereunder (nor the benefits of such rights) may be assigned,
transferred or encumbered  without Seller's prior written consent (which consent
may be withheld in Seller's  sole and  absolute  discretion)  and any  purported
assignment, transfer or encumbrance without Seller's prior written

<PAGE>

consent  shall be void.  Purchaser  expressly  covenants  and agrees that (a) if
Purchaser is a corporation,  a sale or transfer of more than fifty (50%) percent
(at any one time or, in the  aggregate  from time to time) of the  shares of any
class of the  issued and  outstanding  stock of  Purchaser,  its  successors  or
assigns,  or the issuance of additional  shares of any class of its stock to the
extent of more than fifty (50%)  percent  (at any one time or, in the  aggregate
from time to time) of the  number of shares of said  class of stock  issued  and
outstanding on the date hereof, (b) if Purchaser is a partnership, joint venture
or limited  liability  company,  a sale or  transfer  of more than  fifty  (50%)
percent  (at any one  time  or,  in the  aggregate  from  time to  time)  of the
partnership,  joint  venture,  membership  or other  unincorporated  association
interests of Purchaser, its successors or assigns, or the issuance of additional
partnership,  joint  venture or member  interests  of any class to the extent of
more than fifty (50%) percent (at any one time or, in the aggregate from time to
time) of the amount of partnership,  joint venture or member interests issued on
the date  hereof  shall,  in any such case,  constitute  an  assignment  of this
Agreement.  Unless,  in each instance,  the prior written  consent of Seller has
been obtained,  any such assignment  shall  constitute a material  default under
this  Agreement  and shall  entitle  Seller to exercise  all rights and remedies
under this Agreement, at law or equity, in the case of such a Default.

     12.2. Permitted Assignment to Affiliate.  Notwithstanding the provisions of
Section 14.1 above to the contrary,  the named Purchaser in this Agreement shall
have the  one-time  right to  assign  its  rights  and  obligations  under  this
Agreement to an Affiliate of such named  Purchaser  effective on or prior to the
Closing,  provided  that on or prior to the effective  date of such  assignment,
Purchaser  delivers to Seller  evidence of the  ownership of  Purchaser  and the
proposed  assignee so as to permit Seller to verify that such proposed  assignee
is an Affiliate of Purchaser and (c) on or prior to the  effective  date of such
assignment,  the Purchaser shall deliver to Seller a written assumption, in form
reasonably  satisfactory  to Seller and duly  executed and  acknowledged  by the
assignee,  in which the assignee agrees to assume all of Purchaser's  covenants,
agreements  and  obligations  under  this  Agreement.  As of  the  date  of  the
assignment of this  Agreement to an Affiliate in  accordance  with the foregoing
provisions of this Section 12.2, the  representations  of Purchaser named herein
set  forth in  Section  7.1  hereof  shall be  remade  as to the  Affiliate,  as
Purchaser,  except that the  representations and warranties set forth in Section
7.1(a) hereof shall be modified accordingly. Purchaser named herein shall remain
fully liable for all of Purchaser's covenants,  agreements and obligations under
this Agreement  notwithstanding  any such permitted  assignment pursuant to this
Section 12.2.

                              ARTICLE 13. COVENANTS
                              ---------------------

     13.1. Operation of Premises.  Between the date hereof and the Closing Date,
Seller  shall  continue to maintain  the  Premises  in the  ordinary  course and
substantially  in  accordance  with the  practices  and  procedures  customarily
followed by Seller in the  maintenance of the Premises prior to the date hereof;
provided,  however,  that Seller shall have no obligation to make any repairs or
expenditures that are capital in nature.

     13.2. Insurance. Between the date hereof and the Closing Date, Seller shall
either  (a)  maintain  in full  force and  effect  the fire and  other  casualty
insurance  coverages  described in Exhibit Q annexed  hereto or (b) replace such
insurance policies with other policies providing coverage equivalent thereto.

<PAGE>

     13.3. Modification of Leases. Between the date hereof and the Closing Date,
Seller  shall not modify or amend any of the  Existing  Leases or any of the New
Leases without Purchaser's prior written consent in each instance, which consent
may be withheld in Purchaser's sole and absolute discretion;  provided, however,
Seller  shall have the right,  without  Purchaser's  consent,  to enter into any
modification  or  amendment  of an Existing  Lease or a New Lease if the same is
required  pursuant to the terms of the Existing  Lease or the New Lease,  as the
case may be, or if the same is entered into to  effectuate  or  memorialize  the
exercise  of any  right or option  contained  in the  Existing  Lease or the New
Lease,  as the case may be. If  required,  Purchaser's  consent  shall be deemed
granted if not denied by notice  (stating the grounds for denial with reasonable
specificity)  given to Seller  within five (5) Business  Days after  request for
such consent by Seller.

     13.4.  Termination of Leases. Between the date hereof and the Closing Date,
Seller  shall not  cancel,  accept the  surrender  of, or  terminate  any of the
Existing Leases or New Leases without  Purchaser's prior written consent in each
instance,  which  consent  may be  withheld  in  Purchaser's  sole and  absolute
discretion;  provided, however, Seller shall have the right, without Purchaser's
consent, to cancel, accept the surrender of, or terminate an Existing Lease or a
New Lease (i) if such cancellation,  surrender or termination is predicated upon
a default of the tenant  thereunder or (ii) if such  cancellation,  surrender or
termination is made by the tenant pursuant to the terms of the Existing Lease or
the New Lease,  as the case may be. If required,  Purchaser's  consent  shall be
deemed  granted if not denied by notice  (stating  the  grounds  for denial with
reasonable  specificity)  given to Seller  within five (5)  Business  Days after
request for such consent by Seller.

     13.5.  New Leases.  Between the date  hereof and the Closing  Date,  Seller
shall not enter into any New Leases without Purchaser's prior written consent in
each instance,  which consent may be withheld in  Purchaser's  sole and absolute
discretion.

     13.6. Leasing Costs.  Purchaser shall pay and be solely responsible for the
payment of (or, to extent paid by Seller,  shall reimburse Seller at the Closing
for),  all or a portion of any  Leasing  Costs  paid or payable by the  landlord
under the Leases in  connection  with (i) any New Lease or any  modification  or
amendment  of any New  Lease  to  which  Purchaser  has  consented  or to  which
Purchaser's consent is not required in accordance with the terms hereof and (ii)
any  modification  or  amendment  of an Existing  Lease to which  Purchaser  has
consented or to which Purchaser's consent is not required in accordance with the
terms  hereof,  including  Leasing  Costs  which  arise after the date hereof by
reason of a Contingent Commission Event.

     13.7.  Service  Contracts.  Between the date  hereof and the Closing  Date,
Seller shall not enter into any New Service Contracts or modify, renew or extend
the term of any of the  Existing  Service  Contracts  or New  Service  Contracts
without Purchaser's prior written consent in each instance, which consent may be
withheld in Purchaser's sole and absolute discretion;  provided, however, Seller
shall have the right, without Purchaser's consent, to enter into any New Service
Contracts and modify, renew or extend the term of any Existing Service Contracts
or New Service  Contracts (i) if the same is cancelable upon no more than thirty
(30) days' notice without payment by Purchaser of a cancellation  fee or (ii) if
the  same is  required  pursuant  to the  terms of any of the  Existing  Service
Contracts or New Service  Contracts or if the same is entered into to effectuate
or  memorialize  the  exercise  of any  right or option on the part of the other
party (i.e., the contractor)  contained in any of the Existing Service Contracts
or New Service  Contracts.  If  required,  Purchaser's  consent  shall be deemed
granted if not denied by notice (stating the grounds for denial

<PAGE>

with reasonable  specificity) given to Seller within two (2) Business Days after
request for such consent by Seller.  Notwithstanding  anything contained in this
Section 15.7 to the contrary,  Seller shall have the right,  without Purchaser's
consent,  to terminate any one or more of the Existing Service Contracts and the
New Service Contracts at any time on or prior to the Closing Date.

     13.8. Leasing and Management Agreements.  Seller shall at Closing terminate
the Property Management  Agreement (as defined in Exhibit D annexed hereto) and,
subject to the provisions of the Assignment of Service  Contracts,  Licenses and
Permits, the Leasing Agency Agreement (as defined in Exhibit D annexed hereto).

     13.9.  Unlawful  Detainer Action.  Notwithstanding  any contrary  provision
contained  herein,  Seller  reserves the right to prosecute to  completion  that
certain  unlawful  detainer action  commenced by Seller against the tenant under
the G. Ray Hawkins Lease (the "Action") or to settle or otherwise dispose of the
Action in the manner that Seller deems appropriate.  Seller shall be entitled to
prosecute  and collect  any  judgment  obtained by Seller  prior to the Close of
Escrow in the  Action.  If the Action is pending at the Close of Escrow,  Seller
shall assign to Purchaser all of its right, title and interest in the Action. If
subsequent to the Close of Escrow Purchaser obtains a judgment in the Action and
ultimately  collects  upon the same,  the amounts  collected  (net of reasonable
attorneys'  fees incurred by Purchaser in  prosecuting  the Action) shall be pro
rated and applied in accordance with the provisions of Article 6 hereof.

                            ARTICLE 14. MISCELLANEOUS
                            -------------------------

     14.1. Notices. (a) All notices,  demands, requests and other communications
required  hereunder  shall be in writing and shall be deemed to have been given:
(i) upon delivery, if personally delivered; (ii) three (3) days after deposit in
the  United  States  Mail when  delivered,  postage  prepaid,  by  certified  or
registered  mail;  (iii) one (1)  Business  Day after  deposit with a nationally
recognized  overnight  delivery service marked for delivery on the next Business
Day; or (iv) upon receipt when transmitted by telecopy,  provided that notice is
also sent by one of the foregoing  three methods,  in each case addressed to the
party for whom it is intended at its address hereinafter set forth:

                  If to Seller:

                           Wellsford Capital Properties, L.L.C.
                           c/o Wellsford Real Properties, Inc.
                           535 Madison Avenue
                           26th Floor
                           New York, New York 10022
                           Attention: William Darrow
                           Telecopy No: (212) 421-7244

<PAGE>

                  with a copy to:

                           Robinson Silverman Pearce Aronsohn & Berman LLP
                           1290 Avenue of the Americas
                           New York, New York 10104
                           Attention: Dennis M. Sughrue, Esq.
                           Telecopy No. (212) 541-4630

                  If to Purchaser:

                           Dial Advisory Group, Inc.
                           11506 Nicholes Street, Suite 200
                           Omaha, Nebraska 68154
                           Attention: Starr Schulke
                           Telecopy: (402) 493-7495

                  If to Escrowee:

                           Commerce Escrow Company
                           1545 Wilshire Blvd.
                           Suite 600
                           Los Angeles, California 90012
                           Attention: Mark Minsky
                           Telecopy No. (213) 484-0417

          (b) Any party may  designate a change of address by written  notice to
     the others given in accordance with the provisions of this Section 14.1.

          (c) The  attorney  for any  party  may send  notices  on that  party's
     behalf.

     14.2.  Transaction  Costs.  Seller, in addition to its  responsibility  for
escrow costs payable by Seller,  shall also be  responsible  for the cost of its
legal counsel, advisors and the other professionals employed by it in connection
with the sale of the Property.  Purchaser, in addition to its responsibility for
escrow costs payable by Purchaser, shall also be responsible for the cost of (i)
Purchaser's due diligence, (ii) Purchaser's legal counsel, advisors,  engineers,
consultants  and  other   professionals   employed  by  it  in  connection  with
Purchaser's  due  diligence  and the  purchase  of the  Property,  and (iii) any
financing  Purchaser may elect to obtain,  including the incremental cost of any
lender's policy of title insurance.

     14.3.  Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California.

     14.4. Successors. All of the provisions of this Agreement and of any of the
documents and instruments  executed in connection herewith shall apply to and be
binding upon, and inure to the benefit of Seller and Purchaser, their successors
and their permitted assigns.

     14.5. No Third Party Beneficiary. This Agreement and each of the provisions
hereof are solely for the benefit of  Purchaser  and Seller and their  permitted
assigns. No provisions of this

<PAGE>

Agreement or of any of the  documents  and  instruments  executed in  connection
herewith  shall be  construed  as  creating  in any person or entity  other than
Purchaser  and  Seller  and their  permitted  assigns  any  rights of any nature
whatsoever.

     14.6.  Entire  Agreement.  This Agreement,  together with the documents and
instruments executed and delivered in connection herewith,  set forth the entire
agreement between Purchaser and Seller relating to the transactions contemplated
hereby  and all  other  prior  or  contemporaneous  agreements,  understandings,
representations  or  statements,  oral  or  written,  relating  directly  to the
Property are superseded hereby.

     14.7. Severability.  If any provision in this Agreement is found by a court
of competent  jurisdiction to be in violation of any applicable law, and if such
court should  declare such  provision  of this  Agreement to be unlawful,  void,
illegal or unenforceable  in any respect,  the remainder of this Agreement shall
be construed as if such unlawful,  void, illegal or unenforceable provision were
not contained therein, and the rights,  obligations and interests of the parties
hereto under the remainder of this  Agreement  shall  continue in full force and
effect undisturbed and unmodified in any way.

     14.8. Modification. This Agreement and the terms hereof may not be changed,
waived, modified,  supplemented,  canceled, discharged or terminated orally, but
only by an instrument or instruments in writing executed and delivered by Seller
and Purchaser.

     14.9.  Waiver of Trial by Jury.  EACH PARTY HEREBY WAIVES,  IRREVOCABLY AND
UNCONDITIONALLY,  TRIAL BY JURY IN ANY ACTION  BROUGHT ON, UNDER OR BY VIRTUE OF
OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS OR CERTIFICATES
EXECUTED IN CONNECTION HEREWITH, THE PROPERTY, OR ANY CLAIMS,  DEFENSES,  RIGHTS
OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO ANY OF THE FOREGOING.

     14.10.  Venue.  Purchaser  and Seller  each hereby  irrevocably  waives any
objection  that it may now or hereafter have to the laying of venue of any suit,
action  or  proceeding  arising  out  of  this  Agreement  or  the  transactions
contemplated  hereby  brought in any federal or state court sitting in the State
of  California  and hereby  further  irrevocably  waives any claim that any such
suit,  action or  proceeding  brought in any such  court has been  brought in an
inconvenient  forum. Seller and Purchaser further hereby expressly submit to the
jurisdiction of all federal and state courts sitting in the State of California.

     14.11. No Recording. Neither this Agreement nor any memorandum hereof shall
be recorded.  Each party hereby  agrees to indemnify and hold harmless the other
for all liabilities,  losses,  damages, liens, suits, claims, costs and expenses
(including  reasonable  attorneys'  fees)  incurred by the others by reason of a
breach of the foregoing covenant.

     14.12.  Captions.  The captions and table of contents in this Agreement are
inserted for  convenience  of reference  only and in no way define,  describe or
limit the scope or intent of this Agreement or any of the provisions hereof.

     14.13.  Counterparts;  Effectiveness  of Agreement.  This  Agreement may be
executed  in any  number of  counterparts,  each of which  shall  constitute  an
original but all of which together will

<PAGE>

constitute  one  instrument.  This Agreement  shall not be effective  unless and
until the same has been executed and delivered by all parties  hereto whether in
one or more counterparts.

     14.14.  Merger.  The delivery of the Deed to  Purchaser  and the closing of
title to the  Property  shall be  deemed  to  constitute  full  performance  and
discharge by Seller of every  agreement and  obligation on the part of Seller to
be performed hereunder, and no agreement,  promise,  representation or warranty,
express or implied, on the part of Seller shall survive Closing unless expressly
set forth to the contrary herein.

     14.15.  1031  Exchange.  Purchaser  may desire to exchange the Property for
property  of  like-kind  and  qualifying  use  pursuant  to Section  1031 of the
Internal  Revenue Code, as amended.  In connection  therewith,  Seller shall (i)
permit Purchaser to assign its interest (but not its obligations,  to the extent
such  obligations  survive the Close of Escrow in  accordance  with the terms of
this Agreement) in this Agreement to a "Qualified  Intermediary"  as provided in
Treasury  Regulations Section  1.1031(k)-1(g)(4)  and (ii) accept payment of the
Closing  Payment from such Qualified  Intermediary.  Seller shall cooperate with
Purchaser to the extent reasonably necessary to effectuate such exchange.  In no
event,  however,  shall  Seller  be  obligated  to incur any  expense,  make any
representation  or warranty or perform any covenant in favor of Purchaser or any
other party in connection with such exchange. Purchaser shall indemnify and hold
Seller  harmless from and against any and all claims or costs incurred by Seller
in connection with such exchange.

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first above written.

                                    Seller:
                                    ------

                                    WELLSFORD CAPITAL PROPERTIES, L.L.C.

                                    By: Wellsford Capital, its sole member

                                    By: /s/ William H. Darrow II
                                       --------------------------------
                                        Name: William H. Darrow II
                                        Title: Vice President

                                    Purchaser:
                                    ---------

                                    DIAL ADVISORY GROUP, INC.

                                    By: /s/ Philip J. Gibson
                                       --------------------------------
                                        Name: Philip J. Gibson
                                        Title: President

<PAGE>

Agreed as to Article 3 only:

COMMERCE ESCROW COMPANY:

By: /s/ Mark R. Minsky
   --------------------------------
     Name: Mark R. Minsky
     Title: Vice President

<PAGE>

                                    Exhibit A

                               (the Ground Lease)

Joint  Occupancy  Lease (the "Ground  Lease"),  dated as of May 14, 1984, by and
between  Santa  Monica-Malibu  Unified  School  District  ("Lessor"),  and  City
Developers,  Inc.  ("CDI"),  with  respect to certain  property  located at 1651
Sixteenth Street and 900 Colorado Avenue both in Santa Monica, California, which
Lease was recorded as Instrument  No.  85-994306  and amended by a  Confirmatory
Memorandum  of Joint  Occupancy  Lease,  dated April 18,  1988,  and recorded as
Instrument No. 88-557913.

The Ground Lease has been modified and assigned by the following addenda, letter
agreements and assignments.

     1.   First Addendum to Joint  Occupancy  Lease between Lessor and CDI dated
          as of May 14, 1984 and executed on July 17, 1984;

     2.   Second  Addendum to Joint Occupancy Lease between Lessor and CDI dated
          as of May 14, 1984 and executed on July 17, 1984;

     3.   Assignment by CDI to Midis Properties,  Ltd.("Midis")  dated September
          19, 1984 and recorded August 27, 1985 as Instrument No. 85-994307.

     4.   Third  Addendum  to  Joint  Occupancy  Lease  between  Lessor  and CDI
          effective July 31, 1985;

     5.   Fourth Addendum to Joint Occupancy Lease between Lessor and CDI, dated
          July 1986;

     6.   Fifth Addendum to Joint  Occupancy Lease between Lessor and CDI, dated
          July 1, 1986;

     7.   Letter agreement dated November 25, 1986 between Lessor and Midis;

     8.   Letter agreement dated October 21, 1987 between Lessor and Midis;

     9.   Sixth Addendum to Joint Occupancy Lease among Lessor,  Midis and Santa
          Monica HSR Limited Partnership ("HSR"), dated December 8, 1987;

     10.  Seventh Addendum to Joint Occupancy Lease among Lessor, Midis and HSR,
          dated as of (undated) , 1993. ------------

     11.  Assignment by Midis to CAM Properties, Inc. et al, by assignment dated
          December  12,  1994 and  recorded  June  30,  1995 as  Instrument  No.
          95-1050542,  and  further  assigned  to Bay  City  Holdings,  L.P.  by
          assignment  dated  December  12,  1994 and  recorded  June 30, 1995 as
          Instrument No. 95-1050543.

<PAGE>

     12.  Assignment  of Joint  Occupancy  Lease,  dated October 21, 1998 by and
          between Bay City  Holdings,  L.P. and  Wellsford  Capital  Properties,
          L.L.C.

<PAGE>

                                    Exhibit B

                                   (the Land)

PARCEL I:
---------

THE  PARCEL OF LAND IN THE  RANCHO SAN  VICENTE Y SANTA  MONICA,  IN THE CITY OF
SANTA MONICA,  SHOWN AS PARCEL 11, THREE AND TWO HUNDRED  SIXTY-TWO  THOUSANDTHS
(3.262)  ACRES,  AND MARKED  APEDRO CARL  CARRILLO@  ON THE MAP  ATTACHED TO THE
CERTIFIED  COPY OF THE FINAL  DECREE OF  PARTITION  IN CASE NO.  B-25296  OF THE
SUPERIOR COURT OF SAID COUNTY,  RECORDED IN BOOK 6387, PAGE 1 OF DEEDS,  RECORDS
OF LOS ANGELES COUNTY, STATE OF CALIFORNIA.

PARCEL II:
----------

LOTS 13 AND 14 OF THE STANDARD  TRACT,  IN THE CITY OF SANTA MONICA,  AS PER MAP
FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF LOS
ANGELES SAID COUNTY, CALIFORNIA.

ALSO THAT  PORTION OF LOT 15 OF SAID  STANDARD  TRACT AND,  THAT  PORTION OF THE
RANCHO SAN VICENTE Y SANTA  MONICA,  RECORDED IN BOOK 3, PAGE 30 OF PATENTS,  IN
THE  OFFICE OF THE  COUNTY  RECORDER  OF SAID  COUNTY,  DESCRIBED  AS A WHOLE AS
FOLLOWS:

BEGINNING AT THE MOST NORTHERLY  CORNER OF LOT 14 OF THE STANDARD  TRACT, AS PER
MAP FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF
LOS ANGELES COUNTY;  THENCE SOUTH 44? 45' EAST ALONG THE  NORTHEASTERLY  LINE OF
SAID LOT 14 TO THE MOST  EASTERLY  CORNER OF SAID LOT 14;  THENCE  SOUTHWESTERLY
ALONG THE  SOUTHEASTERLY  LINE OF LOTS 13 AND 14 OF SAID  STANDARD  TRACT TO THE
MOST  SOUTHERLY  CORNER  OF SAID LOT 13;  THENCE  SOUTH 44?  45' EAST  ALONG THE
SOUTHEASTERLY  PROLONGATION  OF THE  SOUTHWESTERLY  LINE OF SAID LOT 13,  116.66
FEET,  MORE OR LESS,  TO A POINT IN A LINE  DISTANT 30 FEET  (MEASURED  AT RIGHT
ANGLES)  NORTHWESTERLY  FROM  AND  PARALLEL  TO THE  SOUTHEASTERLY  LINE OF SAID
STANDARD  TRACT;  THENCE NORTH 37? 26' EAST ALONG SAID PARALLEL LINE 50.44 FEET,
MORE OR LESS, TO ITS INTERSECTION WITH THE  NORTHEASTERLY  LINE OF SAID STANDARD
TRACT;  THENCE SOUTH 44? 45' EAST ALONG SAID NORTHEASTERLY LINE 30.28 FEET, MORE
OR LESS,  TO A POINT IN THE  NORTHWESTERLY  LINE 30.28  FEET MORE OR LESS,  TO A
POINT IN THE  NORTHWESTERLY  RIGHT OF WAY LINE OF THE SOUTHERN  PACIFIC COMPANY.
SAID POINT BEING ALSO THE MOST EASTERLY  CORNER OF SAID STANDARD  TRACT,  THENCE
NORTH 37? 26' EAST 203.28 FEET, MORE OR LESS, ALONG SAID NORTHWESTERLY  RIGHT OF
WAY LINE OF THE SOUTHERN  PACIFIC  COMPANY TO THE MOST SOUTHERLY  CORNER OF THAT
CERTAIN 30 FOOT STRIP OF LAND CONVEYED TO LOS ANGELES PACIFIC  RAILROAD  COMPANY
BY E.P. CLARK IN BOOK

<PAGE>

2805, PAGE 199 OF DEEDS;  THENCE NORTH 44? 45' WEST 30 FEET TO THE MOST WESTERLY
CORNER OF SAID 30 FOOT STRIP OF LAND; THENCE  NORTHEASTERLY 235.90 FEET, MORE OR
LESS, ALONG THE  NORTHWESTERLY  LINE OF SAID 30 FOOT STRIP OF LAND TO A POINT IN
THE SOUTHEASTERLY  PROLONGATION OF THE  NORTHEASTERLY  LINE OF TENTH STREET , 80
FEET WIDE; THENCE NORTHWESTERLY ALONG SAID PROLONGED LINE OF 140.4 FEET, MORE OR
LESS, TO A POINT IN THE SOUTHEASTERLY LINE OF COLORADO AVENUE (FORMERLY RAILROAD
AVENUE) 80 FEET WIDE; THENCE  SOUTHWESTERLY ALONG THE SOUTHEASTERLY LINE OF SAID
COLORADO AVENUE 435.10 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

<PAGE>

                                    Exhibit C

                                (Existing Leases)

1.   Standard Industrial/Commercial Multi-Tenant Lease-Modified Net, dated as of
     February  7, 1997,  by and between Bay City  Holdings,  LP, as Lessor,  and
     Direct  Partners,  L.L.C.,  as Lessee,  which Lease was amended pursuant to
     that First Amendment to Lease,  dated as of August 15, 1997, by and between
     Lessor and Lessee,  which  Lease was  assigned,  pursuant  to that  certain
     Assignment  and Assumption of Standard  Industrial/Commercial  Multi-Tenant
     Lease,  dated as of April 30, 1999, by and between Direct Partners  L.L.C.,
     as assignor,  and DP Acquisition Inc., as assignee.  (Agreement of Sublease
     dated  as of May  11,  2000,  by  and  between  Direct  Partners  Inc.,  as
     Sublessor, and Groundswell Inc., as Sublessee).

2.   Standard Industrial Lease - Multi-Tenant,  dated as of July 1, 1993, by and
     between Midas Properties Ltd., as Lessor, and G. Ray Hawkins, as Tenant.

3.   Standard  Industrial  Lease - Multi-Tenant,  dated as of April 20, 1995, by
     and between Bay City Holdings  L.P.,  as Lessor,  and Direct  Partners,  as
     Lessee,  which Lease was amended pursuant to that First Amendment To Lease,
     dated  August 15,  1997,  by and between  Lessor and Direct  Partners  LLC,
     successor in interest to Direct Partners,  as Lessee. (the "Direct Partners
     Lease").

4.   Standard  Industrial  Lease - Net,  dated as of October  15,  1992,  by and
     between Midas Properties, Ltd., as Lessor and Dalkey Post, Inc., as Lessee,
     which Lease was  amended  pursuant  to that  Amendment  Number One To Lease
     Agreement, dated July 9, 1997, by and between Lessor and Lessee.

5.   Lease  Agreement,  dated as of August 30,  2000,  by and between  Wellsford
     Capital  Properties  LLC, as  Landlord  and The  Accelerator  Group LLC, as
     Tenant.

6.   Standard  Industrial  Lease - Net,  dated as of  October  1,  1992,  by and
     between Midas  Properties,  Ltd., as Lessor,  and  Christopher  Grimes,  as
     Lessee,  which Lease was amended  pursuant to that Amendment  Number One To
     Lease Agreement, dated as of March 7, 1997, by and between Bay City Holding
     LP, successor in interest to Midas Properties Ltd., as Lessor and Lessee.

7.   Standard Industrial/Commercial  Multi-Tenant Lease - Modified Net, dated as
     of May 31, 1996, by and between Bay City Holdings LP, as Lessor and Darling
     Construction  &  Realty  Corporation,  as  Lessee.  (Sublease,  dated as of
     January 17, 1997,  by and between  Darling  Contruction,  as Sublessor  and
     Crazy Horse Editorial, as Sublessee,  Further Sublease, dated as of October
     1, 1997,  by and between Crazy Horse  Editorial,  as Sublessor and Conning,
     Hammers,  Klok &  Wagner,  as  Sublessee,  Further  Sublease,  dated  as of
     September  14, 1999, by and between  Conning,  Hammers,  Klok & Wagner,  as
     Sublessor and Base 2, as Sublessee).

8.   Lease  Agreement,  dated as of November 22, 1999, by and between  Wellsford
     Capital Properties LLC, as Landlord, and AFT Corporation, as Tenant.

<PAGE>

9.   Lease  Agreement,  dated as of  March 9,  1999,  by and  between  Wellsford
     Capital  Properties  L.L.C.,  as Landlord,  and Mary Martinuzzi dba Mary M.
     Photography, as Tenant.

10.  Standard Industrial Lease - Multi-Tenant, dated as of April 1, 1995, by and
     between Bay City  Holdings  LP, as Lessor and Graying & Balding,  Inc.,  as
     Lessee,  which Lease was amended pursuant to that First Amendment To Lease,
     dated as of May 12,  1995,  by and  between  Lessor and  Lessee.  (Standard
     Sublease, dated as of May 19, 1999, by and between Graying & Balding, Inc.,
     as Sublessor and Intervisual Communication, Inc., as Sublessee).

11.  Lease  Agreement,  dated as of October 25, 1999,  by and between  Wellsford
     Capital Properties LLC, as Landlord and GMP Architects, Inc., as Tenant.

12.  Lease  Agreement,  dated as of August 29,  2000,  by and between  Wellsford
     Capital Properties LLC, as Landlord and Interior Spaces, Inc., as Tenant.

13.  Lease Agreement, dated as of May 19, 2000, by and between Wellsford Capital
     Properties LLC, as Landlord and The Pet Allergy Center, Inc., as Tenant.

14.  Lease Agreement, dated as of May 22, 2000, by and between Wellsford Capital
     Properties  LLC,  as  Landlord  and  Gabrielle   Raumberger  dba  Gabrielle
     Raumberger Design, as Tenant.

15.  Lease  Agreement,  dated as of February 5, 1999,  by and between  Wellsford
     Capital Properties LLC, as Landlord and Shigura, Ltd., as Tenant.

16.  Lease  Agreement,  dated as of February 1, 1999,  by and between  Wellsford
     Capital Properties LLC, as Landlord and Gary E. Carr and Sandra B. Carr, as
     Tenant.

17.  Standard Industrial/Commercial  Multi-Tenant Lease - Modified Net, dated as
     of December  17, 1996,  by and between Bay City  Holdings LP, as Lessor and
     Anti Gravity Products aka Daniel Lutz, as Lessee.

18.  Joint  Occupancy  Lease,  dated as of May 14,  1984,  by and between  Santa
     Monica-Malibu Unified School District, as Lessor and City Developers, Inc.,
     as Lessee,  which  Lease is modified  pursuant  to First  Addendum To Joint
     Occupancy  Lease,  dated as of May 14,  1984,  by and  between  Lessor  and
     Lessee,  which  Lease is  modified  pursuant  to Second  Addendum  To Joint
     Occupancy  Lease,  dated as of May 14,  1984,  by and  between  Lessor  and
     Lessee,  which  Lease  is  modified  pursuant  to Third  Addendum  to Joint
     Occupancy  Lease,  dated as of July 31,  1985,  by and  between  Lessor and
     Lessee,  which  Lease is  modified  pursuant  to Fourth  Addendum  to Joint
     Occupancy  Lease,  dated as of July 1986, by and between Lessor and Lessee,
     which Lease is  modified  pursuant  to Fifth  Addendum  to Joint  Occupancy
     Lease,  dated as of July 1, 1986, by and between  Lessor and Lessee,  which
     Lease is modified pursuant to Letter  Agreement.  Dated as of July 1, 1986,
     by and  between  Lessor and Lessee,  which  Lease is  modified  pursuant to
     Letter Agreement,  dated as of November 25, 1986, by and between Lessor and
     Lessee,  which Lease is modified pursuant to Letter Agreement,  dated as of
     October 21, 1987, by and between Lessor and Lessee, which Lease is modified
     pursuant to Sixth Addendum to Joint Occupancy  Lease,  dated as of December
     8, 1987,  by and between  Lessor and Midas  Properties  Ltd.,  successor in
     interest to City Developers, Inc.

<PAGE>

     and Santa Monica HSR Limited Partnership ("HSR"), as Lessee, which Lease is
     modified  pursuant to Seventh Addendum to Joint Occupancy  Lease,  which is
     undated,  by and among  Lessor,  Midas and HSR,  which  canceled  the First
     through  Fifth  Addendums  and two Letter  Agreements  with  respect to the
     Sixteenth Street and Colorado Avenue  properties,  which Lease was assigned
     pursuant to Absolute  Assignment of Leasehold Estate and Consent,  dated as
     of December 12, 1994 by and between  Lessor and Lessee,  recorded  June 30,
     1995 as Document No. 95-1050543.

19.  Lease  Agreement,  dated as of February 28, 2000, by and between  Wellsford
     Capital  Properties  LLC, as Landlord and  Interpacket  Networks,  Inc., as
     Tenant.

20.  Standard Industrial Multi-Tenant Lease - Modified Net, dated as of December
     4, 1996,  by and between Bay City  Holdings LP, as Lessor and Dot Imaging &
     Printing, Inc., as Lessee.

21.  Standard Industrial/Commercial  Multi-Tenant Lease - Modified Net, dated as
     of June 19,  1997,  by and  between Bay City  Properties  LP, as Lessor and
     Santa Monica Malibu Unified School District, as Lessee (the "Santa Monica -
     Malibu School District Lease").

22.  Standard Industrial/Commercial  Multi-Tenant Lease - Modified Net, dated as
     of April 6, 1998,  by and  between  Bay City  Properties  LP, as Lessor and
     Laurant Beverly Hills, Inc., as Lessee.  (Sublease,  dated as of (undated),
     by  and  between  Laurant  Beverly  Hills,  Inc.,  as  Sublessor  and  KAOS
     Entertainment, Inc., as Sublessee).

23.  Standard Industrial/Commercial  Multi-Tenant Lease - Modified Net, dated as
     of January 14, 1998, by and between Bay City  Properties  LP, as Lessor and
     American Medical Response of Southern California, as Lessee.

24.  Lease  Agreement,  dated as of November 16, 2000, by and between  Wellsford
     Capital  Properties LLC, as Landlord and Beyond  Imagination  Graphics,  as
     Tenant.

25.  Standard Industrial/Commercial  Multi-Tenant Lease - Modified Net, dated as
     of April  15,  1997,  by and  between  Bay City  Holdings  LP,  Lessor  and
     Commercial  Graphics  Corporation,  as Lessee,  which Lease was transferred
     pursuant  to  Consent  To  Transfer,  which  is  undated,  by  and  between
     Commercial Graphics Corporation, as Tenant and ARC Acquisition Corporation,
     as Transferee.

<PAGE>

                                    Exhibit D
                  (Service Contracts and Brokerage Agreements)

1.   Property  Management  Agreement,  dated as of April 1, 2000, by and between
     Wellsford  Capital  Properties,  LLC and Charles Dunn Real Estate Services,
     Inc. (the "Property Management Agreement").

2.   Leasing Agreement dated May 1, 2000 for Bay City Holdings between Wellsford
     Real Properties, LLC and Westmac Commercial Brokerage Company (the "Leasing
     Agency Agreement").

3.   Service  Contract,  dated as of September 10, 1998, by and between Bay City
     Holdings, LP and Coverall of the San Fernando Valley, Inc.

4    Service  Agreement,  dated as of January 1, 2000,  by and  between Bay City
     Holding Inc. and Consolidated Services Inc. (900 Colorado Avenue)

5.   Service  Agreement,  dated as of January 1, 2000,  by and  between Bay City
     Holding Inc. and Consolidated Services Inc. (1630 17th Street)

6.   Service  Agreement,  dated as of January 1, 2000,  by and  between Bay City
     Holding Inc. and Consolidated Services Inc. (1651 16th Street)

7.   Agreement,  dated as of July 17,  2000,  by and between  Wellsford  Capital
     Properties LLC and Vivitar Security Systems, Inc. (900 Colorado Avenue)

8.   System  Purchase  Agreement.  Dated as of February 22, 1996, by and between
     Bay City Holdings and API Security Inc. (1651 16th Street)

9.   Service  Contract,  dated as of November 25, 1997, by and between Wellsford
     Capital Properties LLC and Live Art Plantscapes.

10.  Service  Contract,  dated  as of June 30,  1998,  by and  between  Bay City
     Holdings LC and Klean Sweep. Inc.

<PAGE>

                                    Exhibit E
                      (Form of Assignment of Ground Lease)

                           ASSIGNMENT OF GROUND LEASE
                           --------------------------

     THIS ASSIGNMENT OF GROUND LEASE (this "ASSIGNMENT"),  is made as of the ___
day of January,  2001, by and between  WELLSFORD CAPITAL  PROPERTIES,  L.L.C., a
Delaware  limited  liability  company  having  an  address  c/o  Wellsford  Real
Properties,  Inc.,  535 Madison  Avenue,  26th Floor,  New York,  New York 10022
("ASSIGNOR"),  and DIAL ADVISORY GROUP,  INC., a Nebraska  corporation having an
office at 11506 Nicholes Street, Suite 200, Omaha, Nebraska 68154 ("ASSIGNEE").

                                 R E C I T A L S
                                 ---------------

     Pursuant to that certain  Purchase and Sale Agreement  dated as of December
___, 2000 between Assignor, as seller, and Assignee, as purchaser (the "PURCHASE
AGREEMENT"),  Assignor is selling to Assignee  its interest as lessee under that
certain  ground  lease  described  in  Schedule A annexed  hereto  (the  "GROUND
LEASE"),  which Ground Lease demises  premises  located at 1651 Sixteenth Street
and 900 Colorado Boulevard,  Santa Monica,  California,  which premises are more
particularly described on Schedule B annexed hereto.

     NOW, THEREFORE,  in consideration of the foregoing promises,  covenants and
undertakings  contained  in  this  Assignment,   and  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

                            ASSIGNMENT AND ASSUMPTION
                            -------------------------

     Assignor hereby assigns,  transfers,  sets-over,  delivers and conveys unto
Assignee all of the rights, benefits and privileges of Assignor, as lessee under
the Ground Lease, TO HAVE AND TO HOLD unto Assignee.

     Assignee   assumes  and  agrees  to  discharge   and  perform  all  duties,
obligations  and  liabilities of the lessee under the Ground Lease first arising
or accruing from and after the date hereof.

     This Assignment is made by Assignor  without  recourse,  representation  or
warranty  of any kind,  except  as may be  expressly  set forth in the  Purchase
Agreement  and subject to the  limitations  on survival of  representations  and
warranties set forth therein.

     This  Assignment  shall be binding upon,  enforceable by and shall inure to
the benefit of the successors and assigns of the parties.

     This Assignment may be signed in multiple  counterparts  which,  when taken
together  and signed by all parties  and  delivered  to any other party  hereto,
shall constitute a binding Assignment between the parties.

     This  Assignment  shall be governed by and construed in accordance with the
laws of the State of California.

<PAGE>

     IN  WITNESS  WHEREOF,   Assignor  and  Assignee  have  duly  executed  this
Assignment as of the date first set forth above.

            ASSIGNOR:

            WELLSFORD CAPITAL PROPERTIES, L.L.C.

            By: Wellsford Capital, a Maryland real estate investment trust

            By:
               --------------------------------
                    Name:
                    Title:

            ASSIGNEE:

            DIAL ADVISORY GROUP, INC.

            By:
               --------------------------------
                    Name:
                    Title:

<PAGE>

                             Schedule A to Exhibit E
                             -----------------------

Joint  Occupancy  Lease (the "Ground  Lease"),  dated as of May 14, 1984, by and
between  Santa  Monica-Malibu  Unified  School  District  ("Lessor"),  and  City
Developers,  Inc.  ("CDI"),  with  respect to certain  property  located at 1651
Sixteenth Street, 900 Colorado Avenue in Santa Monica,  California,  which Lease
was  recorded  as  Instrument  No.  85-994306  and  amended  by  a  Confirmatory
Memorandum  of Joint  Occupancy  Lease,  dated April 18,  1988,  and recorded as
Instrument No. 88-557913.

The Ground Lease has been modified and assigned by the following addenda, letter
agreements and assignments.

1.   First Addendum to Joint  Occupancy Lease between Lessor and CDI dated as of
     May 14, 1984 and executed on July 17, 1984;

2.   Second Addendum to Joint Occupancy Lease between Lessor and CDI dated as of
     May 14, 1984 and executed on July 17, 1984;

3.   Assignment by CDI to Midis  Properties,  Ltd.("Midis")  dated September 19,
     1984 and recorded August 27, 1985 as Instrument No. 85-994307.

4.   Third  Addendum to Joint  Occupancy  Lease between Lessor and CDI effective
     July 31, 1985;

5.   Fourth Addendum to Joint Occupancy Lease between Lessor and CDI, dated July
     1986;

6.   Fifth Addendum to Joint  Occupancy Lease between Lessor and CDI, dated July
     1, 1986;

7.   Letter agreement dated November 25, 1986 between Lessor and Midis;

8.   Letter agreement dated October 21, 1987 between Lessor and Midis;

9.   Sixth  Addendum  to Joint  Occupancy  Lease among  Lessor,  Midis and Santa
     Monica HSR Limited Partnership ("HSR"), dated December 8, 1987; ---

10.  Seventh  Addendum to Joint  Occupancy  Lease among  Lessor,  Midis and HSR,
     dated as of (undated), 1993.

11.  Assignment  by Midis to CAM  Properties,  Inc. et al, by  assignment  dated
     December 12, 1994 and recorded June 30, 1995 as Instrument No.  95-1050542,
     and  further  assigned  to Bay City  Holdings,  L.P.  by  assignment  dated
     December 12, 1994 and recorded June 30, 1995 as Instrument No. 95-1050543.

12.  Assignment of Joint Occupancy Lease,  dated October 21, 1998 by and between
     Bay City Holdings, L.P. and Wellsford Capital Properties, L.L.C.

<PAGE>

                             Schedule B to Exhibit E
                             -----------------------

PARCEL I:
---------

THE  PARCEL OF LAND IN THE  RANCHO SAN  VICENTE Y SANTA  MONICA,  IN THE CITY OF
SANTA MONICA,  SHOWN AS PARCEL 11, THREE AND TWO HUNDRED  SIXTY-TWO  THOUSANDTHS
(3.262)  ACRES,  AND MARKED  APEDRO CARL  CARRILLO@  ON THE MAP  ATTACHED TO THE
CERTIFIED  COPY OF THE FINAL  DECREE OF  PARTITION  IN CASE NO.  B-25296  OF THE
SUPERIOR COURT OF SAID COUNTY,  RECORDED IN BOOK 6387, PAGE 1 OF DEEDS,  RECORDS
OF LOS ANGELES COUNTY, STATE OF CALIFORNIA.

PARCEL II:
----------

LOTS 13 AND 14 OF THE STANDARD  TRACT,  IN THE CITY OF SANTA MONICA,  AS PER MAP
FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF LOS
ANGELES SAID COUNTY, CALIFORNIA.

ALSO THAT  PORTION OF LOT 15 OF SAID  STANDARD  TRACT AND,  THAT  PORTION OF THE
RANCHO SAN VICENTE Y SANTA  MONICA,  RECORDED IN BOOK 3, PAGE 30 OF PATENTS,  IN
THE  OFFICE OF THE  COUNTY  RECORDER  OF SAID  COUNTY,  DESCRIBED  AS A WHOLE AS
FOLLOWS:

BEGINNING AT THE MOST NORTHERLY  CORNER OF LOT 14 OF THE STANDARD  TRACT, AS PER
MAP FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF
LOS ANGELES COUNTY;  THENCE SOUTH 44? 45' EAST ALONG THE  NORTHEASTERLY  LINE OF
SAID LOT 14 TO THE MOST  EASTERLY  CORNER OF SAID LOT 14;  THENCE  SOUTHWESTERLY
ALONG THE  SOUTHEASTERLY  LINE OF LOTS 13 AND 14 OF SAID  STANDARD  TRACT TO THE
MOST  SOUTHERLY  CORNER  OF SAID LOT 13;  THENCE  SOUTH 44?  45' EAST  ALONG THE
SOUTHEASTERLY  PROLONGATION  OF THE  SOUTHWESTERLY  LINE OF SAID LOT 13,  116.66
FEET,  MORE OR LESS,  TO A POINT IN A LINE  DISTANT 30 FEET  (MEASURED  AT RIGHT
ANGLES)  NORTHWESTERLY  FROM  AND  PARALLEL  TO THE  SOUTHEASTERLY  LINE OF SAID
STANDARD  TRACT;  THENCE NORTH 37? 26' EAST ALONG SAID PARALLEL LINE 50.44 FEET,
MORE OR LESS, TO ITS INTERSECTION WITH THE  NORTHEASTERLY  LINE OF SAID STANDARD
TRACT;  THENCE SOUTH 44? 45' EAST ALONG SAID NORTHEASTERLY LINE 30.28 FEET, MORE
OR LESS,  TO A POINT IN THE  NORTHWESTERLY  LINE 30.28  FEET MORE OR LESS,  TO A
POINT IN THE  NORTHWESTERLY  RIGHT OF WAY LINE OF THE SOUTHERN  PACIFIC COMPANY.
SAID POINT BEING ALSO THE MOST EASTERLY  CORNER OF SAID STANDARD  TRACT,  THENCE
NORTH 37? 26' EAST 203.28 FEET, MORE OR LESS, ALONG SAID NORTHWESTERLY  RIGHT OF
WAY LINE OF THE SOUTHERN  PACIFIC  COMPANY TO THE MOST SOUTHERLY  CORNER OF THAT
CERTAIN 30 FOOT STRIP OF LAND CONVEYED TO LOS ANGELES PACIFIC  RAILROAD  COMPANY
BY E.P. CLARK IN BOOK 2805, PAGE 199 OF DEEDS; THENCE NORTH 44? 45' WEST 30 FEET
TO THE MOST WESTERLY CORNER OF SAID 30 FOOT STRIP OF LAND; THENCE  NORTHEASTERLY
235.90 FEET, MORE OR LESS, ALONG THE NORTHWESTERLY LINE OF SAID 30 FOOT

<PAGE>

STRIP OF LAND TO A POINT IN THE SOUTHEASTERLY  PROLONGATION OF THE NORTHEASTERLY
LINE OF TENTH STREET , 80 FEET WIDE; THENCE  NORTHWESTERLY  ALONG SAID PROLONGED
LINE OF 140.4  FEET,  MORE OR  LESS,  TO A POINT  IN THE  SOUTHEASTERLY  LINE OF
COLORADO AVENUE (FORMERLY  RAILROAD AVENUE) 80 FEET WIDE;  THENCE  SOUTHWESTERLY
ALONG THE SOUTHEASTERLY  LINE OF SAID COLORADO AVENUE 435.10 FEET, MORE OR LESS,
TO THE POINT OF BEGINNING.

<PAGE>

                                    Exhibit F

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    Exhibit G
                             (Form of Bill of Sale)

                                  BILL OF SALE
                                  ------------

     WELLSFORD CAPITAL PROPERTIES,  L.L.C., a Delaware limited liability company
having an address c/o Wellsford Real Properties,  Inc., 535 Madison Avenue, 26th
Floor, New York, New York 10022 ("SELLER"),  for and in consideration of the sum
of Ten Dollars ($10.00),  lawful money of the United States, to it in hand paid,
at or before delivery of these presents by DIAL ADVISORY GROUP, INC., a Nebraska
corporation  having  an office  at 11506  Nicholes  Street,  Suite  200,  Omaha,
Nebraska 68154 ("PURCHASER"),  the receipt of which is hereby acknowledged,  has
bargained and sold, and by these presents does grant and convey unto  Purchaser,
its  successors and assigns  forever all right,  title and interest of Seller in
and to all of the  equipment,  furniture,  fittings,  fixtures  and  articles of
personal  property  owned by Seller and affixed or  attached  to,  installed  or
placed in or upon and used for or  useable in any  present or future  enjoyment,
occupancy  or  operation  of the real  property  described in Schedule A annexed
hereto,  including,  without  limitation,  those  items set forth on  Schedule B
annexed hereto.

     This Bill of Sale is made without  recourse,  representation or warranty of
any kind.

     TO HAVE AND TO HOLD the same unto  Purchaser  its  successors  and  assigns
forever.

     This Bill of Sale shall be governed by and construed in accordance with the
laws of the State of California.

     IN WITNESS  WHEREOF,  Seller has caused this instrument to be duly executed
as of this    day of        , 2000.

            WELLSFORD CAPITAL PROPERTIES, L.L.C.

            By: Wellsford Capital, a Maryland real estate investment trust

            By:
               --------------------------------
                Name:
               Title:

<PAGE>

                                    Exhibit H

                         (Form of Assignment of Leases)

                       ASSIGNMENT AND ASSUMPTION OF LEASES
                       -----------------------------------

     THIS ASSIGNMENT AND ASSUMPTION OF LEASES (this "ASSIGNMENT"), is made as of
the ___ day of January,  2001,  by and  between  WELLSFORD  CAPITAL  PROPERTIES,
L.L.C.,  a Delaware  limited  liability  company having an address c/o Wellsford
Real Properties,  Inc., 535 Madison Avenue, 26th Floor, New York, New York 10022
("ASSIGNOR"),  and DIAL ADVISORY GROUP,  INC., a Nebraska  corporation having an
office at 11506 Nicholes Street, Suite 200, Omaha, Nebraska 68154 ("ASSIGNEE").

                                 R E C I T A L S
                                 ---------------

     Pursuant to that certain Sale and Purchase  Agreement  dated as of the date
hereof  between   Assignor,   as  seller,   and  Assignee,   as  purchaser  (the
"AGREEMENT"),  Assignor is selling the  Property (as that term is defined in the
Agreement) to Assignee.

     NOW, THEREFORE,  in consideration of the foregoing promises,  covenants and
undertakings  contained  in  this  Assignment,   and  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

                            ASSIGNMENT AND ASSUMPTION
                            -------------------------

     Assignor hereby assigns,  transfers,  sets-over,  delivers and conveys unto
Assignee all of the rights,  benefits and  privileges of Assignor,  as landlord,
under the leases  (the  "LEASES")  described  in  Schedule A annexed  hereto and
incorporated herein by this reference,  including without limitation, all rents,
issues and profits arising therefrom  (subject to adjustment as set forth in the
Agreement),  TO HAVE AND TO HOLD all and  singular  subject as  aforesaid,  unto
Assignee.

     Assignee   assumes  and  agrees  to  discharge   and  perform  all  duties,
obligations  and  liabilities  of the landlord under the Leases first arising or
accruing from and after the date hereof.

     This Assignment is made by Assignor  without  recourse,  representation  or
warranty of any kind, except as may be expressly set forth in the Agreement, and
subject to the  limitations  on survival of  representations  and warranties set
forth therein.

     This  Assignment  shall be binding upon,  enforceable by and shall inure to
the benefit of the successors and assigns of the parties.

     This Assignment may be signed in multiple  counterparts  which,  when taken
together  and signed by all parties  and  delivered  to any other party  hereto,
shall constitute a binding Assignment between the parties.

     This  Assignment  shall be governed by and construed in accordance with the
laws of the State of California.

<PAGE>

     IN  WITNESS  WHEREOF,   Assignor  and  Assignee  have  duly  executed  this
Assignment as of the date first set forth above.

               ASSIGNOR:

               WELLSFORD CAPITAL PROPERTIES, L.L.C.

               By: Wellsford Capital, a Maryland real estate investment trust

               By:
                  --------------------------------
                       Name:
                       Title:

               ASSIGNEE:

               DIAL ADVISORY GROUP, INC.

               By:
                  --------------------------------
                       Name:
                       Title:

<PAGE>

                             Schedule A to Exhibit H

                                  *[To follow]*

<PAGE>

                                    Exhibit I
         (Form of Assignment of Service Contracts, Licenses and Permits)
                            ASSIGNMENT AND ASSUMPTION
                            -------------------------
                   OF SERVICE CONTRACTS, LICENSES AND PERMITS
                   ------------------------------------------

     THIS ASSIGNMENT AND ASSUMPTION OF CONTRACTS,  PERMITS, AND WARRANTIES (this
"ASSIGNMENT")  is  made  as of the  ___ day of  January,  2001,  by and  between
WELLSFORD  CAPITAL  PROPERTIES,  L.L.C.,  a Delaware limited  liability  company
having an address c/o Wellsford Real Properties,  Inc., 535 Madison Avenue, 26th
Floor, New York, New York 10022  ("ASSIGNOR"),  and DIAL ADVISORY GROUP, INC., a
Nebraska  corporation  having an office at 11506  Nicholes  Street,  Suite  200,
Omaha, Nebraska 68154 ("ASSIGNEE").

                                 R E C I T A L S
                                 ---------------

     Pursuant to that certain  Purchase and Sale Agreement  dated as of December
___,  2000  between  Assignor,  as  seller,  and  Assignee,  as  purchaser  (the
"AGREEMENT"),  Assignor is selling the  Property to  Assignee.  All  capitalized
terms not defined herein shall have the respective  meanings ascribed thereto in
the Agreement.

     NOW THEREFORE,  in consideration of the foregoing  promises,  covenants and
undertakings  contained  in  this  Assignment,   and  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

                                A G R E E M E N T
                                -----------------

     1. The term "PROPERTY INTERESTS", as used herein, shall mean, collectively,
all of  Assignor's  right,  title and interest in and to the Service  Contracts,
Licenses and Permits affecting the real property described on Schedule A annexed
hereto.

     2. (a) Assignor hereby assigns, transfers,  sets-over, delivers and conveys
to Assignee all of Assignor's  right,  title and interest in and to the Property
Interests.

          (b) Assignee  hereby  accepts the foregoing  assignment  and agrees to
     assume,  keep,  perform  and  fulfill  all of  the  terms,  conditions  and
     obligations  which are  required to be kept,  performed  and  fulfilled  by
     Assignor in connection with or arising out of the Property Interests, first
     arising or accruing from and after the date hereof.

          (c) Assignee  further hereby assumes the  obligations of Assignor with
     respect to post-termination  leasing commissions payable in accordance with
     Exhibit B, Section 9 of the Leasing Agency Agreement.

          3.   This   Assignment   is  made  by   Assignor   without   recourse,
     representation  or warranty  or any kind,  except as may be  expressly  set
     forth in the Agreement,  and subject to the  limitations on the survival of
     representations and warranties set forth therein.

          4. This  Assignment  shall be binding upon,  enforceable  by and shall
     inure to the benefit of the successors and assigns of the parties.

<PAGE>

          5. This Assignment may be signed in multiple  counterparts which, when
     taken  together and signed by all parties and  delivered to any other party
     hereto, shall constitute a binding Assignment between the parties.

          6. This  Assignment  shall be governed by and  construed in accordance
     with the laws of the State of California.

     IN  WITNESS  WHEREOF,   Assignor  and  Assignee  have  duly  executed  this
instrument as of the date first set forth above.

            ASSIGNOR:

            WELLSFORD CAPITAL PROPERTIES, L.L.C.

            By: Wellsford Capital, a Maryland real estate investment trust

            By:
               --------------------------------
                    Name:
                    Title:

           ASSIGNEE:

           DIAL ADVISORY GROUP, INC.

            By:
               --------------------------------
                    Name:
                    Title:

<PAGE>

                             Schedule A to Exhibit I

PARCEL I:
---------

THE  PARCEL OF LAND IN THE  RANCHO SAN  VICENTE Y SANTA  MONICA,  IN THE CITY OF
SANTA MONICA,  SHOWN AS PARCEL 11, THREE AND TWO HUNDRED  SIXTY-TWO  THOUSANDTHS
(3.262)  ACRES,  AND MARKED  APEDRO CARL  CARRILLO@  ON THE MAP  ATTACHED TO THE
CERTIFIED  COPY OF THE FINAL  DECREE OF  PARTITION  IN CASE NO.  B-25296  OF THE
SUPERIOR COURT OF SAID COUNTY,  RECORDED IN BOOK 6387, PAGE 1 OF DEEDS,  RECORDS
OF LOS ANGELES COUNTY, STATE OF CALIFORNIA.

PARCEL II:
----------

LOTS 13 AND 14 OF THE STANDARD  TRACT,  IN THE CITY OF SANTA MONICA,  AS PER MAP
FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF LOS
ANGELES SAID COUNTY, CALIFORNIA.

ALSO THAT  PORTION OF LOT 15 OF SAID  STANDARD  TRACT AND,  THAT  PORTION OF THE
RANCHO SAN VICENTE Y SANTA  MONICA,  RECORDED IN BOOK 3, PAGE 30 OF PATENTS,  IN
THE  OFFICE OF THE  COUNTY  RECORDER  OF SAID  COUNTY,  DESCRIBED  AS A WHOLE AS
FOLLOWS:

BEGINNING AT THE MOST NORTHERLY  CORNER OF LOT 14 OF THE STANDARD  TRACT, AS PER
MAP FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF
LOS ANGELES COUNTY;  THENCE SOUTH 44? 45' EAST ALONG THE  NORTHEASTERLY  LINE OF
SAID LOT 14 TO THE MOST  EASTERLY  CORNER OF SAID LOT 14;  THENCE  SOUTHWESTERLY
ALONG THE  SOUTHEASTERLY  LINE OF LOTS 13 AND 14 OF SAID  STANDARD  TRACT TO THE
MOST  SOUTHERLY  CORNER  OF SAID LOT 13;  THENCE  SOUTH 44?  45' EAST  ALONG THE
SOUTHEASTERLY  PROLONGATION  OF THE  SOUTHWESTERLY  LINE OF SAID LOT 13,  116.66
FEET,  MORE OR LESS,  TO A POINT IN A LINE  DISTANT 30 FEET  (MEASURED  AT RIGHT
ANGLES)  NORTHWESTERLY  FROM  AND  PARALLEL  TO THE  SOUTHEASTERLY  LINE OF SAID
STANDARD  TRACT;  THENCE NORTH 37? 26' EAST ALONG SAID PARALLEL LINE 50.44 FEET,
MORE OR LESS, TO ITS INTERSECTION WITH THE  NORTHEASTERLY  LINE OF SAID STANDARD
TRACT;  THENCE SOUTH 44? 45' EAST ALONG SAID NORTHEASTERLY LINE 30.28 FEET, MORE
OR LESS,  TO A POINT IN THE  NORTHWESTERLY  LINE 30.28  FEET MORE OR LESS,  TO A
POINT IN THE  NORTHWESTERLY  RIGHT OF WAY LINE OF THE SOUTHERN  PACIFIC COMPANY.
SAID POINT BEING ALSO THE MOST EASTERLY  CORNER OF SAID STANDARD  TRACT,  THENCE
NORTH 37? 26' EAST 203.28 FEET, MORE OR LESS, ALONG SAID NORTHWESTERLY  RIGHT OF
WAY LINE OF THE SOUTHERN  PACIFIC  COMPANY TO THE MOST SOUTHERLY  CORNER OF THAT
CERTAIN 30 FOOT STRIP OF LAND CONVEYED TO LOS ANGELES PACIFIC  RAILROAD  COMPANY
BY E.P. CLARK IN BOOK 2805, PAGE 199 OF DEEDS; THENCE NORTH 44? 45' WEST 30 FEET
TO THE MOST WESTERLY CORNER OF SAID 30 FOOT STRIP OF LAND; THENCE  NORTHEASTERLY
235.90 FEET, MORE OR LESS, ALONG THE NORTHWESTERLY LINE OF SAID 30 FOOT

<PAGE>

STRIP OF LAND TO A POINT IN THE SOUTHEASTERLY  PROLONGATION OF THE NORTHEASTERLY
LINE OF TENTH STREET , 80 FEET WIDE; THENCE  NORTHWESTERLY  ALONG SAID PROLONGED
LINE OF 140.4  FEET,  MORE OR  LESS,  TO A POINT  IN THE  SOUTHEASTERLY  LINE OF
COLORADO AVENUE (FORMERLY  RAILROAD AVENUE) 80 FEET WIDE;  THENCE  SOUTHWESTERLY
ALONG THE SOUTHEASTERLY  LINE OF SAID COLORADO AVENUE 435.10 FEET, MORE OR LESS,
TO THE POINT OF BEGINNING.

<PAGE>

                                    Exhibit J

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    Exhibit K

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    Exhibit L

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    Exhibit M

                   (Form of Ground Lease Estoppel Certificate)

                        GROUND LEASE ESTOPPEL CERTIFICATE

     Reference is hereby made to that certain Joint Occupancy Lease (the "Ground
Lease") as more particularly described on Exhibit A, which is attached hereto.

     Santa   Monica-Malibu   Unified  School  District  (the  "Ground   Lessor")
understands  that Dial Advisory Group,  Inc., a Nebraska  corporation  having an
office  at  11506  Nicholes  Street,  Suite  200,  Omaha,  Nebraska  68154  (the
"Purchaser")  may acquire the estate  created by the Ground Lease and assume the
obligations of Wellsford Capital Properties, L.L.C. ("Ground Lessee"), as lessee
thereunder.  In that regard,  Ground  Lessor  hereby  ratifies and  certifies to
Purchaser  and to any lender  financing  Purchaser's  acquisition  of the estate
created by the Ground Lease (the  "Lender") and to their  respective  successors
and/or assigns as follows:

1.   The legal  description  of the premises  subject to the Ground Lease is set
     forth on Exhibit B annexed hereto.

2.   The Ground  Lease is in full  force and  effect  and has not been  modified
     except as set forth on Exhibit A annexed hereto.

3.   There is no security  deposit  held by the Ground  Lessor  under the Ground
     Lease.

4.   Ground Lessee has paid basic rent under the Ground Lease through .

5.   Ground  Lessor  hereby  consents to the  assignment  of the Ground Lease to
     Purchaser.

6.   Ground Lessor hereby consents to the existing use of the Premises.

7.   Ground  Lessee  has no  obligation  to Ground  Lessor  with  respect to the
     Assigned  Property,  as defined in the Seventh  Addendum to Joint Occupancy
     Lease,  dated as of  (undated),  1993,  by and among Ground  Lessor,  Midis
     Properties, Limited and Santa Monica HSR Limited Partnership.

8.   To Ground Lessor's  knowledge,  there are no outstanding claims of any kind
     by Ground Lessor against Ground Lessee.

9.   To Ground Lessor's knowledge, no event has occurred which may be considered
     an event of default under the Ground Lease.

     This  certificate has been given to Purchaser with the  understanding  that
Purchaser and Lender shall rely thereon.  The undersigned  hereby certifies that
he or she is duly  authorized  to sign and deliver  this Ground  Lease  Estoppel
Certificate.

<PAGE>

                   Ground Lessor:

                   SANTA MONICA-MALIBU UNIFIED SCHOOL DISTRICT

                   By:
                      --------------------------------
                           Name:
                           Title:

Date:        , 2000.

<PAGE>

                             Exhibit A to Exhibit M
                               (the Ground Lease)

Joint  Occupancy  Lease,  dated  as of  May  14,  1984,  by  and  between  Santa
Monica-Malibu  Unified School District  ("Lessor"),  and City  Developers,  Inc.
("CDI"),  with respect to certain  property located at 1651 Sixteenth Street and
900 Colorado Avenue both in Santa Monica,  California,  which Lease was recorded
as Instrument No.  85-994306 and amended by a  Confirmatory  Memorandum of Joint
Occupancy Lease, dated April 18, 1988, and recorded as Instrument No. 88-557913.

The Ground Lease has been modified and assigned by the following addenda, letter
agreements and assignments.

1.   First Addendum to Joint  Occupancy Lease between Lessor and CDI dated as of
     May 14, 1984 and executed on July 17, 1984;

2.   Second Addendum to Joint Occupancy Lease between Lessor and CDI dated as of
     May 14, 1984 and executed on July 17, 1984;

3.   Assignment by CDI to Midis  Properties,  Ltd.("Midis")  dated September 19,
     1984 and recorded August 27, 1985 as Instrument No. 85-994307.

4.   Third  Addendum to Joint  Occupancy  Lease between Lessor and CDI effective
     July 31, 1985;

5.   Fourth Addendum to Joint Occupancy Lease between Lessor and CDI, dated July
     1986;

6.   Fifth Addendum to Joint  Occupancy Lease between Lessor and CDI, dated July
     1, 1986;

7.   Letter agreement dated November 25, 1986 between Lessor and Midis;

8.   Letter agreement dated October 21, 1987 between Lessor and Midis;

9.   Sixth  Addendum  to Joint  Occupancy  Lease among  Lessor,  Midis and Santa
     Monica HSR Limited Partnership ("HSR"), dated December 8, 1987;

10.  Seventh  Addendum to Joint  Occupancy  Lease among  Lessor,  Midis and HSR,
     dated as of (undated) , 1993.

11.  Assignment  by Midis to CAM  Properties,  Inc. et al, by  assignment  dated
     December 12, 1994 and recorded June 30, 1995 as Instrument No.  95-1050542,
     and  further  assigned  to Bay City  Holdings,  L.P.  by  assignment  dated
     December 12, 1994 and recorded June 30, 1995 as Instrument No. 95-1050543.

12.  Assignment of Joint Occupancy Lease,  dated October 21, 1998 by and between
     Bay City Holdings, L.P. and Wellsford Capital Properties, L.L.C.

<PAGE>

                             Exhibit B to Exhibit M
                               (Legal Description)

PARCEL I:
---------

THE  PARCEL OF LAND IN THE  RANCHO SAN  VICENTE Y SANTA  MONICA,  IN THE CITY OF
SANTA MONICA,  SHOWN AS PARCEL 11, THREE AND TWO HUNDRED  SIXTY-TWO  THOUSANDTHS
(3.262)  ACRES,  AND MARKED  APEDRO CARL  CARRILLO@  ON THE MAP  ATTACHED TO THE
CERTIFIED  COPY OF THE FINAL  DECREE OF  PARTITION  IN CASE NO.  B-25296  OF THE
SUPERIOR COURT OF SAID COUNTY,  RECORDED IN BOOK 6387, PAGE 1 OF DEEDS,  RECORDS
OF LOS ANGELES COUNTY, STATE OF CALIFORNIA.

PARCEL II:
----------

LOTS 13 AND 14 OF THE STANDARD  TRACT,  IN THE CITY OF SANTA MONICA,  AS PER MAP
FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF LOS
ANGELES SAID COUNTY, CALIFORNIA.

ALSO THAT  PORTION OF LOT 15 OF SAID  STANDARD  TRACT AND,  THAT  PORTION OF THE
RANCHO SAN VICENTE Y SANTA  MONICA,  RECORDED IN BOOK 3, PAGE 30 OF PATENTS,  IN
THE  OFFICE OF THE  COUNTY  RECORDER  OF SAID  COUNTY,  DESCRIBED  AS A WHOLE AS
FOLLOWS:

BEGINNING AT THE MOST NORTHERLY  CORNER OF LOT 14 OF THE STANDARD  TRACT, AS PER
MAP FILED IN BOOK 5, PAGE 83 OF MAPS,  IN THE OFFICE OF THE COUNTY  RECORDER  OF
LOS ANGELES COUNTY;  THENCE SOUTH 44? 45' EAST ALONG THE  NORTHEASTERLY  LINE OF
SAID LOT 14 TO THE MOST  EASTERLY  CORNER OF SAID LOT 14;  THENCE  SOUTHWESTERLY
ALONG THE  SOUTHEASTERLY  LINE OF LOTS 13 AND 14 OF SAID  STANDARD  TRACT TO THE
MOST  SOUTHERLY  CORNER  OF SAID LOT 13;  THENCE  SOUTH 44?  45' EAST  ALONG THE
SOUTHEASTERLY  PROLONGATION  OF THE  SOUTHWESTERLY  LINE OF SAID LOT 13,  116.66
FEET,  MORE OR LESS,  TO A POINT IN A LINE  DISTANT 30 FEET  (MEASURED  AT RIGHT
ANGLES)  NORTHWESTERLY  FROM  AND  PARALLEL  TO THE  SOUTHEASTERLY  LINE OF SAID
STANDARD  TRACT;  THENCE NORTH 37? 26' EAST ALONG SAID PARALLEL LINE 50.44 FEET,
MORE OR LESS, TO ITS INTERSECTION WITH THE  NORTHEASTERLY  LINE OF SAID STANDARD
TRACT;  THENCE SOUTH 44? 45' EAST ALONG SAID NORTHEASTERLY LINE 30.28 FEET, MORE
OR LESS,  TO A POINT IN THE  NORTHWESTERLY  LINE 30.28  FEET MORE OR LESS,  TO A
POINT IN THE  NORTHWESTERLY  RIGHT OF WAY LINE OF THE SOUTHERN  PACIFIC COMPANY.
SAID POINT BEING ALSO THE MOST EASTERLY  CORNER OF SAID STANDARD  TRACT,  THENCE
NORTH 37? 26' EAST 203.28 FEET, MORE OR LESS, ALONG SAID NORTHWESTERLY  RIGHT OF
WAY LINE OF THE SOUTHERN  PACIFIC  COMPANY TO THE MOST SOUTHERLY  CORNER OF THAT
CERTAIN 30 FOOT STRIP OF LAND CONVEYED TO LOS ANGELES PACIFIC  RAILROAD  COMPANY
BY E.P. CLARK IN BOOK 2805, PAGE 199 OF DEEDS; THENCE NORTH 44? 45' WEST 30 FEET
TO THE MOST WESTERLY CORNER OF SAID 30 FOOT STRIP OF LAND; THENCE  NORTHEASTERLY
235.90 FEET, MORE OR LESS, ALONG THE NORTHWESTERLY LINE OF SAID 30 FOOT

<PAGE>

STRIP OF LAND TO A POINT IN THE SOUTHEASTERLY  PROLONGATION OF THE NORTHEASTERLY
LINE OF TENTH STREET , 80 FEET WIDE; THENCE  NORTHWESTERLY  ALONG SAID PROLONGED
LINE OF 140.4  FEET,  MORE OR  LESS,  TO A POINT  IN THE  SOUTHEASTERLY  LINE OF
COLORADO AVENUE (FORMERLY  RAILROAD AVENUE) 80 FEET WIDE;  THENCE  SOUTHWESTERLY
ALONG THE SOUTHEASTERLY  LINE OF SAID COLORADO AVENUE 435.10 FEET, MORE OR LESS,
TO THE POINT OF BEGINNING.

<PAGE>

                                    Exhibit N

                      (Form of Tenant Estoppel Certificate)

                                                                          , 2000
                                                               -----------
Landlord:         Wellsford Capital Properties, L.L.C.

Tenant:

Original Lease Date:              .

The  undersigned  Tenant under the  above-referenced  Lease (the "LEASE") hereby
ratifies and  certifies to DIAL  ADVISORY  GROUP,  INC., a Nebraska  corporation
having an office at 11506  Nicholes  Street,  Suite 200,  Omaha,  Nebraska 68154
("PURCHASER"),  as the prospective purchaser of the real property commonly known
as 1651 Sixteenth Street and 900 Colorado  Boulevard,  Santa Monica,  California
(the  "PROPERTY")  of which the premises  demised under the Lease is a part (the
"PREMISES"),  and to any lender  providing  financing to Purchaser in connection
with its acquisition of such real property  ("LENDER"),  and to their respective
successors and/or assigns, as follows:

1.   The CURRENT  term of the Lease  commenced  on  ____________  and expires on
     __________. Tenant has accepted and is in possession of the Premises.

2.   The Lease presently calls for monthly installments of fixed or base rent of
     $___________.

4.   _______  Rent has been paid to and  including  ____________,  2000,  and no
     advance rental or other payment has been made in connection with the Lease,
     except rental for the current month.  Tenant has no defenses or set-offs to
     the payment of rent.

5.   A security deposit in the amount of $ _________ is being held by Landlord.

6.   There is no  existing  event of default on the part of the  Landlord or the
     Tenant in any of the terms and conditions of the Lease.*

7.   The Lease is valid and in full force and effect and  represents  the entire
     agreement between the parties, and the Lease has (check one):

          (    ) not been amended, modified, supplemented,  extended, renewed or
               assigned.

          (    ) been  amended,  modified,  supplemented,  extended,  renewed or
               assigned  as  follows  by  the  following  described  agreements:
               _______________________________________________.

8.   As of the date hereof,  Landlord has fully performed all of its obligations
     under the Lease and  satisfied  all  commitments  made to induce  Tenant to
     enter into the Lease

----------

*  Will accept modified to Tenant's knowledge as to Landlord default.

<PAGE>

     and Tenant is not entitled to any rental  inducements,  "free  rent",  rent
     allowance,  rent credits or other  concession  or economic  inducements  in
     connection  with the Lease  throughout  the remainder of the term except as
     follows:
     ---------------------------------------------------------------------------
     ---------------------------------------------------------------------------
     ---------------------------------------------------------------------------
     --------------------------------------------------.

9.   All construction,  build-out,  improvements, or alterations to the Premises
     required under the Lease have been fully  completed in accordance  with the
     plans and  specifications  described  in the  Lease  and all  contributions
     required to be made by Landlord throughout the term of the Lease on account
     thereof have been made except as follows:

     ---------------------------------------------------------------------------
     ---------------------------------------------------------------------------
     ---------------------------------------------------------------------------
     --------------------------------------------------.

10.  There are no actions, voluntary or involuntary,  pending against the Tenant
     under the bankruptcy laws of the United States or any state thereof.

11.  Tenant has no renewal,  extension,  cancellation or expansion  rights under
     the Lease, except to the extent expressly set forth in the Lease.

12.  Tenant has no right of first  offer or refusal  with  respect  to, or other
     option to purchase, all or any portion of the Premises.

13.  Tenant has not assigned,  transferred  or pledged the Lease or any interest
     therein or sublet any portion thereof except as follows:

     This   certificate  has  been  given  to  Purchaser  and  Lender  with  the
understanding  that  Purchaser  is  acquiring  the  Property in reliance on this
Tenant Estoppel Certificate and Lender will rely hereon in connection with loans
which will be secured by the Property.  The undersigned hereby certifies that he
or she is duly authorized to sign and deliver this Tenant Estoppel Certificate.

                                            Tenant:

Date:  _________, ______.           By:_____________________________________
                                                 Name:
                                                 Title:

<PAGE>

                                    Exhibit O

                                   (Rent Roll)

<PAGE>

                                    Exhibit P

                      (Representation Disclosure Statement)

1.   Seller has commenced an unlawful  detainer  action  against a tenant at the
     Premises,  G. Ray Hawkins.  As of the commencement of the unlawful detainer
     action,  the tenant was in arrears in the payment of Fixed Rent and Overage
     Rent in the amount of $32,338.98. The commencement of the unlawful detainer
     action was  preceded by Seller's  delivery to the tenant of a notice to pay
     rent or surrender possession of the premises demised under the lease, dated
     November 8, 2000.

2.   The  tenant  under the Anti  Gravity  Products  lease is in  arrears in the
     payment of Fixed Rents and Overage Rents for a period of two months.

                                     <PAGE>

                                   Exhibit P-1

                                  (Violations)

1.   Violations  noted on Test 19  Inspection - 5 year Test  Results,  reporting
     results of inspection of 16th Street Premises conducted on March 9, 2000.

2.   Violations  noted on Title 19 Inspection - 5 year Test  Results,  reporting
     results of  inspection  of Colorado  Avenue  Premises  conducted on June 6,
     2000.

<PAGE>

                                    Exhibit Q

                              (Insurance Coverage)

<PAGE>

                                    Exhibit R
                             (Permitted Exceptions)

1.   The Ground Lease.

2.   The  Leases  and the  rights  of  tenants  thereunder,  including,  without
     limitation, memoranda of the Leases.

3.   Zoning and building  regulations,  ordinances,  and requirements adopted by
     any governmental or municipal  authority having jurisdiction  thereof,  and
     amendments and additions  thereto now in force and effect,  which relate to
     the Premises.

4.   Any  agreements,   financing  statements,   chattel  mortgages,   liens  or
     encumbrances entered into by, or arising from, the acts of any tenant.

5.   Subject to adjustment  as herein  provided,  real estate taxes,  tax liens,
     water and sewer charges,  assessments  and vault charges,  and the liens of
     any of the foregoing.

6.   An easement for the purpose  shown below and rights  incidental  thereto as
     set forth in a document.

         Purpose:                   public utilities
         Recorded:                  December 4, 1950
         Instrument/File No.:       2491, Official Records
         Affects:                   a portion of said land, as more particularly
                                    described in said document

7.   Covenants, conditions and restrictions as set forth in the document.

         Recorded:                  May 27, 1958
         Instrument/File:           2817, Official Records

8.   An easement for the purpose  shown below and rights  incidental  thereto as
     set forth in a document.

         Granted to:                General Telephone Company of California, a
                                    corporation
         Purpose:                   public utilities
         Recorded:                  September 7, 1965
         Instrument/File No.:       2574, Official Records
         Affects:                   a portion of said land, as more particularly
                                    described in said document

9.   An easement for the purpose  shown below and rights  incidental  thereto as
     set forth in a document.

         Granted to:                Southern California Edison Company, a
                                    corporation, its successors and/or assigns
         Purpose:                   public utilities
         Recorded:                  October 9, 1986
         Instrument/File No.:       86-1363248 Official Records
         Affects:                   a portion of said land, as more particularly
                                    described in said document

10.      The effect of  "Certificate of Interest in Real Property"

         Dated:                     September 24, 1990
         Executed by:               William J. Anthony - Directors of General
                                    Services State of California

<PAGE>

         In favor of:               not shown
         Recorded:                  October 5, 1990 as Instrument
                                    No. 90-1705280, Official Records

     Among other things, said document provides for:

     The  Director  of  General  Services  of the  State  of  California  hereby
     certifies  that the State of California  has an interest by Virtue of Funds
     Apportioned under the Leroy F. Greene  Lease-Purchase  Law of 1976 (CH. 22.
     Part 10 Div. 1 ED Code) in Real  Property  of the  following  named  School
     District:

         Name of School District:  Santa Monica - Malibu Unified
         Address:               1651 16th Street, Santa Monica, California 90404

         Notice  is  hereby  given  pursuant  to said  Section  17730  that this
         Certificate has the same force, effect, and priority as a Judgment Lien
         Imposed upon real property not exempt from  execution,  as to any party
         hereafter  acquiring  real property from said School  District,  unless
         discharged or released as provided in said Section.

         Reference is made to said document for full particulars.

11.  An  unrecorded  lease  with  certain  terms,   covenants,   conditions  and
     provisions set forth therein:

         Lessor:                    The Bay City Holdings LP
         Lessee:                    Direct Partners, a limited liability Company
         Disclosed by:              Notice of Non-Responsibility
         Recorded:                  August 15, 1997
         Instrument/File No.:       97-1268525 Official Records

         The present  ownership of the leasehold created by said lease and other
         matters affecting the interest of the lessee are not shown herein.

12.  Water rights,  claims or title to water, whether or not shown by the public
     records.

13.  State of facts as disclosed by the Surveys.

14.  An  unrecorded  lease  with  certain  terms,   covenants,   conditions  and
     provisions set forth therein.

         Lessor:                    Wellsford Capital Properties, LLC
         Lessee:                    American Medical Response of Southern
                                    California
         Disclosed by:              Notice of Non-Responsibility
         Recorded:                  October 10, 2000
         Instrument/File No.        00-1585619 Official Records

15.  An  unrecorded  lease  with  certain  terms,   covenants,   conditions  and
     provisions set forth therein.

         Lessor:                    Wellsford Capital Properties, LLC
         Lessee:                    Interior Spaces, Inc.
         Disclosed by:              Notice of Non-Responsibility
         Recorded:                  October 10, 2000
         Instrument/File No.:       00-1585620 Official Records.

<PAGE>

                                 FIRST AMENDMENT
                           TO SALE-PURCHASE AGREEMENT
                          AND JOINT ESCROW INSTRUCTIONS

     THIS  FIRST   AMENDMENT  TO   SALE-PURCHASE   AGREEMENT  AND  JOINT  ESCROW
INSTRUCTIONS  (this "AGREEMENT") dated as of December 18, 2000 between WELLSFORD
CAPITAL  PROPERTIES,  L.L.C,  a Delaware  limited  liability  company  having an
address c/o Wellsford Real Properties,  Inc. 535 Madison Avenue, 26th Floor, New
York,  New York 10022  ("SELLER")  and DIAL  ADVISORY  GROUP,  INC.,  a Nebraska
corporation  having an  address at 11506  Nicholes  Street,  Suite  200,  Omaha,
Nebraska 68154 ("PURCHASER").

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS,  Seller and Purchaser  entered into a Sale-Purchase  Agreement and
Joint Escrow Instructions (the "PURCHASE  AGREEMENT") dated December 8, 2000, as
modified by letter  agreement  dated December 13, 2000, with respect to Seller's
leasehold  estate in  certain  premises  known as 900  Colorado  Avenue and 1651
Sixteenth Street, Santa Monica, California; and

     WHEREAS, Seller and Purchaser wish further to modify the Purchase Agreement
in the manner hereinafter set forth.

     NOW,  THEREFORE,  in  consideration  of the  foregoing  and other  good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, Seller and Purchaser hereby agree as follows:

     1. Defined Terms.  Capitalized  terms used herein and not otherwise defined
shall have the meanings ascribed thereto in the Purchase Agreement.

     2.  Waiver  of  Due  Diligence  Contingency.  Purchaser  acknowledges  that
Purchaser has satisfactorily  completed its due diligence  investigations of the
Property  and hereby  waives its right to terminate  the  Purchase  Agreement in
accordance with the provisions of Section 4.1 thereof.

     3. Purchase Price. Section 3.1 of the Purchase Agreement is hereby modified
so that, in lieu of  $16,550,000,  the Purchase Price set forth therein shall be
$16,419,425.

     4. Title. Seller acknowledges receipt from Bryan Cave, Purchaser's counsel,
of a letter dated  December 18, as to matters  affecting  title to the Property.
Seller further acknowledges that such letter shall constitute a ATitle Objection
Notice,@  as  that  term is  defined  in the  Purchase  Agreement,  which  Title
Objection  Notice  was  timely  received  in  accordance  with the  terms of the
Purchase Agreement.

     5.  Estoppel  Certificates.  Section  5.2(b) of the  Purchase  Agreement is
hereby  modified  so that,  in lieu of not  being  required  to  obtain a Tenant
Estoppel  Certificate  from the tenant  under the G. Ray Hawkins  Lease,  Seller
shall not be required to obtain a Tenant  Estoppel  Certificate  from the tenant
under the Laurant Beverly Hills lease.

<PAGE>

     6. Rent Roll. The rent roll annexed to the Purchase  Agreement as Exhibit O
is hereby deleted in its entirety and replaced with Exhibit O annexed hereto.

     7. Miscellanous.

          (a) The  Purchase  Agreement,  as  amended  by this  Agreement,  shall
     continue in full force and effect and is hereby ratified in all respects.

          (b) This  Agreement  shall  bind,  and inure to the  benefit  of,  the
     parties hereto and their respective successors and assigns.

          (c)  This  Agreement  shall  not be  modified  orally,  but only by an
     agreement in writing executed by Seller and Purchaser.

          (d) This  Agreement  shall be governed by and  construed in accordance
     with the laws of the  State of  California,  without  giving  effect to the
     conflict of law principles thereof.

          (e) This  Agreement  may be  executed in  counterparts,  each of which
     shall constitute an original and all of which,  when taken together,  shall
     constitute but one and the same agreement.

          (f) This Agreement may be executed and delivered by facsimile.

          IN  WITNESS  WHEREOF,  Seller and  Purchaser  have  entered  into this
     Agreement as of the date and year first above written.

                SELLER:

                                WELLSFORD CAPITAL PROPERTIES,
                                L.L.C.

                                By: Wellsford Capital, its Manager

                                       By:
                                           ----------------------
                                            William H. Darrow
                                            Vice President

                PURCHASER:

                                DIAL ADVISORY GROUP, INC.

                                      By:
                                          ----------------------
                                      Name:
                                      Title:

<PAGE>

                                    EXHIBIT O

                                   (Rent Roll)

<PAGE>SALE-PURCHASE AGREEMENT

     SALE-PURCHASE  AGREEMENT (this  "AGREEMENT"),  made as of December 4, 2000,
between  WELLSFORD  CAPITAL  PROPERTIES,  L.L.C., a Delaware  limited  liability
company  having an address c/o  Wellsford  Real  Properties,  Inc.,  535 Madison
Avenue,  26th Floor New York, NY 10022 ("SELLER") and CRC  COMMUNITIES,  INC., a
New Jersey corporation having an office at 634 Stangle Road,  Martinsville,  New
Jersey 08836 ("PURCHASER").

                              W I T N E S S E T H:
                              - - - - - - - - - -

     Seller and  Purchaser,  in  consideration  of the mutual  covenants  herein
contained, hereby agree as follows:

                         ARTICLE 1. CERTAIN DEFINITIONS
                         ------------------------------

     For  purposes  of this  Agreement,  the  following  terms  shall  have  the
following meanings:

     1.1.  "Affiliate"  shall mean,  with respect to any specified  Person,  any
other Person that directly or  indirectly,  through one or more  intermediaries,
controls,  is  controlled  by, or is under  common  control  with the  specified
Person.  For  purposes  of this  definition,  the  term  (i)  "Person"  means an
individual,  corporation, limited liability company, partnership, joint venture,
association,   joint  stock  company,  trust,   unincorporated  organization  or
government   or  any   agency  or   subdivision   thereof   and  (ii)  the  term
"controls"(including,  with correlative meanings,  the terms "controlled by" and
"under common  control with") means the  ownership,  directly or indirectly,  of
more than fifty percent (50%) of the beneficial interests in a Person,  together
with the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person,  whether through ownership
of voting stock, by contract or otherwise.

     1.2. "Broker" shall mean Trillium and Landmark.

     1.3. "Business Day" shall mean any day other than a Saturday, Sunday or any
day upon  which  banks in the  State of New  Jersey or the State of New York are
required or authorized by law to be closed.

     1.4.  "Effective Date" shall mean the date upon which Purchaser  receives a
fully executed counterpart of this Agreement.  Promptly following the occurrence
of the  Effective  Date,  Purchaser  shall  execute  and  deliver to Seller such
instrument  as  Seller  may  submit  to it to  evidence  the  occurrence  of the
Effective Date.

     1.5.  "Existing  Leases"  shall mean the  leases,  licenses  and  occupancy
agreements set forth in Exhibit B annexed hereto.

     1.6.  "Existing  Service  Contracts"  shall  mean  the  service  contracts,
maintenance agreements,  brokerage agreements and other agreements affecting the
Property and set forth in Exhibit C annexed hereto.

<PAGE>

     1.7. "Invasive Tests" shall mean any physical  inspection or testing of the
Premises other than visual examination,  and shall include,  without limitation,
sampling of soils, limestone, wetlands or other media.

     1.8. "Landmark" shall mean Landmark Agency, Inc., Purchaser's broker.

     1.9.  "Leases" shall mean the Existing  Leases and the New Leases in effect
on the Closing Date.

     1.10.  "Leasing Costs" shall mean,  collectively,  (i) leasing or brokerage
commissions,  (ii) direct payments, tenant improvement allowances,  work letters
or free rent and (iii) rent  allowances  or rent  credits,  in each case paid or
granted to a tenant under an Existing Lease or a New Lease.

     1.11.  "New  Leases"  shall  mean any new  leases,  licenses  or  occupancy
agreements  entered  into  by  Seller  in  accordance  with  the  terms  of this
Agreement.

         1.12.  "New  Service  Contracts"  shall  mean  any  service  contracts,
maintenance agreements, brokerage agreements or other agreements entered into by
Seller in accordance with the terms of this Agreement.

     1.13. "Representation Survival Period" shall mean six (6) months.

     1.14. "Service Contracts" shall mean the Existing Service Contracts and the
New Service Contracts in effect on the Closing Date.

     1.15.  "Title  Insurer"  shall mean a  reputable  title  insurance  company
licensed in the State of New Jersey and  selected by Purchaser to insure its fee
interest in the Premises.

     1.16. "Trillium" shall mean Trillium Realty Agency, Inc., Seller's broker.

                      ARTICLE 2. SALE-PURCHASE OF PROPERTY
                      ------------------------------------

     2.1.  Agreement to Sell and Purchase.  Seller shall sell to Purchaser,  and
Purchaser  shall purchase from Seller,  at the Purchase Price and upon the terms
and conditions set forth in this  Agreement,  the following  (collectively,  the
"PROPERTY"):  (a) the parcel of land more  particularly  described  in Exhibit A
attached hereto (the "LAND");  (b) the building and other structures situated on
the Land,  inclusive of all of Seller's right,  title and interest in and to the
improvements,  fixtures, systems, plant equipment, apparatus and machinery which
form  a part  of the  building  or  such  other  structures  (collectively,  the
"BUILDING")  (the Land and the  Building  are  herein  collectively  called  the
"PREMISES");  (c) all right, title and interest of Seller, if any, in and to (i)
the land lying in the bed of any street or highway in front of or adjoining  the
Land to the  center  line  thereof  and  (ii)  any  appurtenances  in and to the
Premises;  (d) all right,  title and interest of Seller in and to any furniture,
furnishings, moveable equipment and other personal property located at, and used
in  connection  with,  the Premises  (herein  collectively  called the "PERSONAL
PROPERTY");  (e) the  landlord's  interest in and to the Leases and any security
held  thereunder;  (f) to the  extent  assignable,  Seller's  right,  title  and
interest in and to the Service Contracts; and (g) to the extent assignable,  any
licenses and permits

<PAGE>

used or useful in the operation of the Premises (collectively, the "LICENSES AND
PERMITS").  The  Premises  are  located  at,  and are known as,  501 Hoes  Lane,
Piscataway, New Jersey.

     2.2. Title to Premises.  Seller shall convey, or cause to be conveyed,  and
Purchaser shall accept, title to the Premises,  on the Closing Date, free of all
Title  Exceptions  other  than the  Permitted  Exceptions  (each as  hereinafter
defined).

     2.3.  Condition  of  Property.  Purchaser  shall rely in its due  diligence
investigations  upon professional  consultants to confirm such matters regarding
the  Property  as   Purchaser   deems   appropriate.   Other  than  the  express
representations   and  warranties  of  Seller  specifically  set  forth  herein,
Purchaser has not relied upon any oral or written information from Seller or its
employees,   affiliates,  agents,  consultants,   advisors  or  representatives,
including,  without  limitation,  any appraisals,  projections or evaluations of
credit quality prepared by Seller or any of its employees,  affiliates,  agents,
consultants, advisors or representatives. Purchaser further acknowledges that no
employee,  agent,  consultant,  advisor  or  representative  of Seller  has been
authorized to make,  and that  Purchaser has not relied upon,  any statements or
representations  other  than those  specifically  contained  in this  Agreement.
Without  limiting the generality of the foregoing,  Purchaser  acknowledges  and
agrees that,  except as expressly set forth herein,  Purchaser is purchasing the
Property "as is" and "where is" on the Closing  Date,  and,  except as expressly
set forth herein,  Seller is making no  representation  or warranty,  express or
implied, and Purchaser has not relied on any representation or warranty, express
or  implied,  regarding  the  Property,   including,   without  limitation,  any
representation  or  warranty  with  respect  to (a) the  business  or  financial
condition  of any tenant of the  Property,  (b) the  physical  condition  of any
Improvement or Personal  Property  comprising all or a part of any Property,  or
its fitness,  merchantability  or  suitability  for any use or purpose,  (c) the
leases,  rents,  income or  expenses  of the  Property,  (d) the  compliance  or
non-compliance  with any laws,  codes,  ordinances,  rules or regulations of any
governmental  authority  (including,  without  limitation,  laws  pertaining  to
hazardous  materials)  or (e)  the  current  or  future  use  of  the  Property,
including,  but not  limited  to, any  Property's  use for  commercial,  retail,
industrial or other purposes. Seller is not liable or bound in any manner by any
verbal or written statements,  representations,  real estate brokers' "set-ups",
offering  memoranda or information  pertaining to the Property  furnished by any
real estate broker,  advisor,  consultant,  agent,  employee,  representative or
other Person.

                            ARTICLE 3. PURCHASE PRICE
                            -------------------------

     3.1.  Purchase Price. The purchase price (the "PURCHASE  PRICE") to be paid
by  Purchaser  to Seller for the  Property is TWO  MILLION  FIVE  HUNDRED  FIFTY
THOUSAND and 00/00  ($2,550,000.00),  net of adjustments made in accordance with
Article 8 below. The Purchase Price shall be paid by Purchaser as follows:

          (a) Fifty Thousand and 00/100 Dollars  ($50,000.00)  (the  "DEPOSIT"),
     payable  on or before  the date  which is two (2)  Business  Days after the
     Effective Date either by (i) wire transfer of immediately  available  funds
     to  the  account  of  Robinson  Silverman  Pearce  Aronsohn  &  Berman  LLP
     ("ESCROWEE")  set forth in Exhibit A-1 annexed  hereto or (ii)  Purchaser's
     check, subject to collection, drawn to the order of Escrowee; and

<PAGE>

          (b)  Two   Million   Five   Hundred   Thousand   and  00/100   Dollars
     ($2,500,000.00)  (the  "CASH  BALANCE"),  payable  at the  Closing  by wire
     transfer  of  immediately   available  funds  to  an  account  or  accounts
     designated by Seller.

     3.2. Escrow of Deposit.

     The  Deposit  shall be held,  paid over  and/or  applied,  by  Escrowee  in
accordance with the following provisions:

          (a)  Escrowee  shall  hold the  Deposit  until the  Closing  or sooner
     termination of this Agreement.  Any interest earned on the Deposit shall be
     paid to the same party  entitled to be paid the Deposit  hereunder  (as and
     when such party is entitled to the Deposit),  and the party  receiving such
     interest shall pay any income taxes thereon.  For purposes thereof, the tax
     identification numbers of the parties are as follows:  13-4027757 (Seller);
     and 22-3395502 (Purchaser).

          (b) If this Agreement is validly terminated by Purchaser in accordance
     with the provisions of Section 4.1 hereof, the Deposit shall be refunded to
     Purchaser.

          (c) At the Closing the Deposit shall be paid by Escrowee to Seller.

          (d) If for any  reason the  Closing  does not  occur,  Escrowee  shall
     continue  to hold the Deposit  until  otherwise  directed by joint  written
     instructions  from the parties to this  Agreement or a final  judgment of a
     court of competent jurisdiction. Escrowee, however, shall have the right at
     any time to  deposit  the  Deposit  with the clerk of any  federal or state
     court  sitting in the State of New  Jersey.  Escrowee  shall  give  written
     notice of such deposit to Seller and Purchaser. Upon such deposit, Escrowee
     shall  be  relieved  and   discharged  of  all  further   obligations   and
     responsibilities hereunder.

          (e) The  parties  acknowledge  that  Escrowee  is  acting  solely as a
     stakeholder at their request and for their convenience, that Escrowee shall
     not be deemed to be the agent of either of the parties,  and that  Escrowee
     shall not be liable to either of the parties for any act or omission on its
     part unless  taken or suffered in bad faith,  in willful  disregard of this
     Agreement or involving gross negligence. Seller and Purchaser shall jointly
     and severally  indemnify  and hold  Escrowee  harmless from and against all
     costs, claims and expenses,  including reasonable attorneys' fees, incurred
     in connection with the performance of Escrowee's duties  hereunder,  except
     with respect to actions or  omissions  taken or suffered by Escrowee in bad
     faith, in willful disregard of this Agreement or involving gross negligence
     on the part of Escrowee.

          (f) Escrowee  shall cause the Deposit to be maintained and invested in
     an  interest-bearing  money  market  account or  accounts  with Mellon Bank
     through its affiliate,  The Boston Safe Deposit and Trust  Company,  or any
     other nationally  recognized  commercial bank. By executing this Agreement,
     Seller and Purchaser  agree that the Deposit may be held at The Boston Safe
     Deposit and Trust Company, One Boston Place,  Boston,  Massachusetts 02108.
     Escrowee shall not be liable for any losses suffered in connection with any
     such  investment  and  shall  have no  obligation  to obtain  the best,  or
     otherwise  seek to  maximize,  the  rate of  interest  earned  on any  such
     investment. Any fees or charges in connection with such investment shall be
     paid out of the amounts held in escrow before any other  payments  shall be
     required to be made from such amounts.

<PAGE>

          (g) Upon any delivery of the amount remaining in escrow as provided in
     Sections  3.2(b),  (c) or (d)  above,  Escrowee  shall be  relieved  of all
     liability,  responsibility  or obligation with respect to or arising out of
     the  escrow or under  this  Agreement.  Escrowee  shall not be bound by any
     modification  to this Section 3.2 unless Escrowee shall have agreed to such
     modification in writing.

          (h)  Escrowee  shall  be  entitled  to rely or act  upon  any  notice,
     instrument  or  document  believed  by  Escrowee  to be  genuine  and to be
     executed and delivered by the proper  person,  and shall have no obligation
     to verify any statements contained in any notice, instrument or document or
     the  accuracy  or  due  authorization  of  the  execution  of  any  notice,
     instrument or document.

          (i)  Escrowee  shall be  entitled to retain  attorneys  of its choice,
     including  itself, in connection with this escrow and Escrowee may continue
     to represent  Seller in connection with this Agreement or any dispute which
     may arise hereunder or otherwise.

          (j) Escrowee has acknowledged agreement to the foregoing provisions of
     this Section 3.2 by signing in the place indicated on the signature page of
     this Agreement.

                              ARTICLE 4. INSPECTION
                              ---------------------

     4.1. Due Diligence Period;  Termination Right.  During the period (the "DUE
DILIGENCE PERIOD")  commencing on the Effective Date and ending on the date (the
"DUE DILIGENCE  EXPIRATION  DATE") which is thirty (30) days after the Effective
Date (unless such date is not a Business  Day, in which event the Due  Diligence
Expiration Date shall be the next occurring Business Day),  Purchaser shall have
the right to conduct  such due  diligence  as it deems  reasonably  necessary or
appropriate  in  connection  with its  acquisition  of the  Property,  including
inspections,  studies,  examinations and  investigations of, or with respect to,
the  Property,  or any  portion  thereof,  and/or any facts,  circumstances  and
matters relating to the Property,  or any portion thereof. If Purchaser,  in its
sole  discretion,  determines  that it is  unsatisfied  with the  results of and
matters  disclosed  by its due  diligence,  Purchaser  shall  have the  right to
terminate  this  Agreement by written  notice given to Seller prior to 5:00 p.m.
New York time on the Due Diligence  Expiration Date (TIME BEING OF THE ESSENCE).
Upon any  termination  of this  Agreement  pursuant to this Section 4.1, (i) the
Deposit  shall be refunded to Purchaser  and (y) neither party hereto shall have
any further  obligation to the other,  with the  exception of those  obligations
which expressly  survive the  termination of this Agreement.  If Purchaser shall
fail to  terminate  this  Agreement  in the time and  manner  set  forth in this
Section 4.1,  Purchaser shall be deemed to have irrevocably  waived its right to
terminate this Agreement pursuant to this Section 4.1

     4.2.  Inspections.  Purchaser and its  authorized  agents,  consultants  or
representatives  shall have the right,  upon  reasonable  prior notice to Seller
(which notice may be by telephone to Mr.  William  Darrow at  212-812-4903),  to
enter upon the  Premises  from time to time to conduct  such  physical and other
inspections as Purchaser  deems  appropriate,  provided that Purchaser shall not
perform  Invasive  Tests or  interview  tenants of the  Premises  without  first
obtaining Seller's consent,  which consent shall not be unreasonably withheld or
delayed. Prior to any entrance upon the Premises for the performance of Invasive
Tests,  Purchaser shall deliver to Seller a certificate of insurance  evidencing
that Purchaser or the appropriate contractor has procured and maintains in force
and effect commercial general liability  insurance covering Purchaser and Seller
against claims for

<PAGE>

bodily  injury  or death or  property  damage  occurring  in,  upon or about the
Premises  in an amount  of not less than  $2,000,000  (combined  single  limit),
issued by an insurance  company with a rating of "A" or better as established by
Best's Rating Guide, which insurance shall include blanket contractual liability
coverage  and  shall  otherwise  be in form  reasonably  acceptable  to  Seller.
Following the  performance of any Invasive  Tests,  Purchaser  shall restore the
Premises to their condition prior to the  performance  thereof.  Purchaser shall
indemnify  and  hold  harmless  Seller  and its  officers,  directors,  members,
employees, successors and assigns, from and against any and all damages, losses,
costs,  expenses,  liabilities and claims that arise out of or in any way relate
to the conduct of the  Inspections.  The  provisions  of this  Section 4.2 shall
survive the termination of this Agreement.

     4.3. Confidentiality. Prior to the Closing, Purchaser shall not disclose to
any other party either the contents of any  materials  delivered to Purchaser by
Seller with  respect to the  Property or the results of any reports  summarizing
any aspect of Purchaser's due diligence  investigations  without first obtaining
the prior written consent of Seller.  Notwithstanding  the foregoing,  Purchaser
may, without first obtaining such prior written  consent,  make such disclosures
as it deems appropriate to its officers,  employees,  lenders, counsel, lenders'
counsel, appraisers,  accountants, insurance advisors, environmental consultants
and similar third-party consultants,  provided that such parties are apprised of
the  confidential  nature of the  material  disclosed.  The  provisions  of this
Section 4.3 shall survive any termination of this Agreement.

                          ARTICLE 5. TRANSACTION COSTS
                          ----------------------------

     5.1.  Seller's Costs.  At the Closing,  Seller shall pay all transfer taxes
payable as a result of the  conveyance  of title to the  Property  to  Purchaser
pursuant to this Agreement. Seller, in addition to its apportionment obligations
hereunder,  if any, also shall be responsible for the cost of its legal counsel,
advisors and the other professionals  employed by it in connection with the sale
of the Property.

     5.2.  Purchaser's  Costs.  Purchaser,  in addition to its apportionment and
other payment  obligations  hereunder,  shall be  responsible  for all costs and
expenses  associated with (a) Purchaser's due diligence,  (b) Purchaser's  legal
counsel, advisors,  engineers,  consultants and the other professionals employed
by it in  connection  with  Purchaser's  due  diligence  and the purchase of the
Property, (c) title reports or abstracts issued by Title Insurer, as well as all
survey and search costs and updates related thereto,  (d) the policy premiums in
respect of any fee title insurance  obtained by Purchaser and any mortgage title
insurance  required by  Purchaser's  lender (if any), (e) the recording fees for
the Deed and (f) all costs and expenses of obtaining any financing Purchaser may
elect to obtain.

                 ARTICLE 6. CLOSING DATE; CONDITIONS TO CLOSING
                 ----------------------------------------------

     6.1.  Closing Date. The closing of the  transactions  contemplated  by this
Agreement  (the  "CLOSING")  shall take place on the date which is fifteen  (15)
days after the Due Diligence  Expiration Date, provided that if such date is not
a Business Day, the Closing shall occur on the next occurring Business Day (such
date,  as the same may be  adjourned  by  Seller  in  accordance  with the terms
hereof, being herein called the "CLOSING DATE").  Notwithstanding the foregoing,
Seller shall have the right, upon written notice to Purchaser,  to an adjourment
or adjournments of the Closing, not to

<PAGE>

exceed  thirty (30) days in the  aggregate.  The Closing shall take place on the
Closing Date at 10:00 a.m. at the offices of Robinson  Silverman Pearce Aronsohn
& Berman LLP, 1290 Avenue of the Americas,  New York, New York 10104. TIME SHALL
BE OF THE ESSENCE WITH RESPECT TO THE  OBLIGATIONS  OF PURCHASER TO BE PERFORMED
ON THE CLOSING DATE,  SUBJECT TO SEVERE  WEATHER  CONDITIONS  WHICH WOULD RENDER
TRAVEL TO NEW YORK CITY INORDINATELY DIFFICULT.

     6.2.  Purchaser's  Conditions.   Purchaser's  obligation  to  purchase  the
Property is subject to the satisfaction of the following  conditions  precedent,
any or all of which may be waived by Purchaser:

          (a)  Seller  shall  have  delivered  to  Purchaser   Tenant   Estoppel
     Certificates,  dated as of a date not more than  forty-five (45) days prior
     to the Closing Date, from the holders of the tenants' interest under Leases
     which demise not less than 80% of the rentable square footage demised as of
     the date hereof under the Leases.  If, however,  Seller is unable to obtain
     Tenant  Estoppel  Certificates  from tenants under Leases demising not less
     than 80% of the rentable  square footage demised under the Leases as of the
     date  hereof,  Seller  may (but  shall not be  obligated  to)  satisfy  the
     foregoing  condition by executing and  delivering to Purchaser at Closing a
     certificate from Seller (the "SELLER'S ESTOPPEL CERTIFICATE") setting forth
     the  matters  which  would  have  been  set  forth in the  Tenant  Estoppel
     Certificate(s)  for any Leases  selected by Seller and for which Seller has
     been  unable  to  obtain  a  Tenant  Estoppel  Certificate,  to the  extent
     necessary to increase to 80% of the rentable  square footage  demised under
     Leases as of the date hereof for which a Tenant  Estoppel  Certificate  has
     been  obtained.  Any  Seller's  Estoppel  Certificate  shall state that the
     representations  made therein shall survive the Closing for a period of six
     (6) months or until such earlier date on which the applicable  tenant shall
     deliver to Purchaser a Tenant  Estoppel  Certificate.  For purposes of this
     Agreement,  the term "TENANT ESTOPPEL CERTIFICATE" shall mean a certificate
     in the  form of  Exhibit  D  annexed  hereto,  provided  that if any  Lease
     prescribes the form or contents of an estoppel  certificate to be delivered
     by the  tenant,  "TENANT  ESTOPPEL  CERTIFICATE"  shall  mean  an  estoppel
     certificate in such form or containing such contents;

          (b)  Seller  shall have  delivered  to  Purchaser  a letter by the New
     Jersey  Department of  Environmental  Protection  (the "DEP") to the effect
     that the New  Jersey  Industrial  Site  Recovery  Act does not apply to the
     Premises (the "ISRA LETTER").

          (c) Seller's representations  contained in Sections 9.2 and 9.3 hereof
     shall be true, complete and correct in all material respects, as made as of
     the dates hereof and as of the Closing Date, provided that Seller shall not
     be deemed to be in breach of any representation,  as made as of the Closing
     Date, to the extent that any such  representation is rendered untrue by any
     state of facts permitted or contemplated by this Agreement; and

          (d) (i) this Agreement shall be in full force and effect,  (ii) Seller
     shall have fully  satisfied,  or shall therewith fully satisfy,  all of its
     Closing  obligations  hereunder,  and (iii) there shall not otherwise  then
     exist any event which would allow  Purchaser  to terminate  this  Agreement
     pursuant to the express terms hereof.

     6.3.  Seller's  Conditions.  Seller's  obligation  to sell the  Property is
subject to the satisfaction of the following conditions precedent, any or all of
which may be waived by Seller:

<PAGE>

          (a) this Agreement shall be in full force and effect,

          (b) Purchaser  shall have fully  satisfied,  or shall  therewith fully
     satisfy, all of its Closing obligations hereunder,

          (c) there shall not  otherwise  then exist any event which would allow
     Seller to terminate  this  Agreement  pursuant to the express terms hereof;
     and

          (d) Purchaser's  representations contained in Section 9.1 hereof shall
     be true,  complete and correct in all material respects,  as made as of the
     date hereof and as of the Closing Date.

     6.4. Failure of Condition Not a Breach.  The parties hereto acknowledge and
agree that the failure to occur of one or more conditions precedent contained in
this Article 6 shall not be deemed to  constitute a breach of this  Agreement by
either party  unless and to the extent that any such party shall have  expressly
agreed or covenanted or is otherwise  expressly  obligated hereunder to take any
action to satisfy or cause the satisfaction of the condition in question.

                   ARTICLE 7. CLOSING DOCUMENTS AND DELIVERIES
                   -------------------------------------------

     7.1. Conveyancing Documents and Deliveries.

          At the Closing:

          (a)  Purchaser  shall deliver to Seller the Cash Balance and any other
     amounts  payable by  Purchaser  to Seller at the  Closing  pursuant to this
     Agreement;

          (b)  Seller  shall  execute,  acknowledge  and  deliver  a  deed  with
     covenants  against grantor's acts in form sufficient to convey the Premises
     to Purchaser, subject only to the Permitted Exceptions and such other Title
     Exceptions waived (or deemed to have been waived) by Purchaser  pursuant to
     this Agreement (the "DEED");

          (c) Seller shall  deliver to Purchaser  original  counterparts  of the
     Tenant  Estoppel  Certificates  received  by Seller  (and,  if  applicable,
     Seller's Estoppel Certificate);

          (d) Seller shall deliver to Purchaser an original  counterpart  of the
     ISRA Letter,  together with a copy of the application therefor submitted by
     Seller to the DEP;

          (e) Seller shall deliver to Purchaser  original  counterparts  (or, if
     the same are unavailable, copies thereof) of the Leases;

          (f) Seller shall deliver to Purchaser  original  counterparts  (or, if
     the  same  are  unavailable,  copies  thereof)  of the  assignable  Service
     Contracts;

          (g) Seller shall deliver to Purchaser  original  counterparts  (or, if
     the same are  unavailable,  copies thereof) of the assignable  Licenses and
     Permits;

<PAGE>

          (h) Seller  shall  execute and  deliver a general  bill of sale in the
     form of Exhibit E annexed  hereto,  conveying to Purchaser  all of Seller's
     right, title and interest in and to the Personal Property;

          (i) Seller,  as  assignor,  and  Purchaser,  as  assignee,  shall each
     execute,  acknowledge  and deliver an  instrument  in the form of Exhibit F
     annexed  hereto  providing for the  assignment by Seller of the  landlord's
     interest in the Leases and the  assumption  by Purchaser of the  landlord's
     obligations  under the  Leases  which  arise or  accrue  from and after the
     Closing Date;

          (j) Seller and Purchaser  shall  mutually  execute and deliver to each
     other an instrument in the form of Exhibit G annexed  hereto  providing for
     (x) the assignment by Seller to Purchaser of all of Seller's  right,  title
     and interest in and to the Service  Contracts and the  assignable  Licenses
     and  Permits,  and the  assumption  by  Purchaser  of Seller's  obligations
     thereunder  which first arise or accrue from and after the Closing Date and
     (y) the  assumption  by Purchaser of Seller's  obligations  with respect to
     post-termination  leasing commissions payable in accordance with Exhibit B,
     Section 9 of the Leasing Agency  Agreement (as defined in Exhibit C annexed
     hereto.)

          (k) Seller shall furnish Purchaser with evidence of the termination of
     the Property Management  Agreement (as defined in Exhibit C annexed hereto)
     and,  subject to the provisions of Section 7.1(j) above, the Leasing Agency
     Agreement.

          (l) Seller shall deliver to Purchaser an instrument  pursuant to which
     Seller (i) remakes the  representations  made by Seller in Sections  9.3(a)
     through (e) hereof as of the Closing Date and (ii) advises Purchaser of any
     facts or circumstances which would render any such  representation  untrue,
     as of the Closing Date.

          (m) Seller and Purchaser shall execute and deliver a letter to each of
     the  tenants  under  the  Leases  and  each  of the  other  parties  to the
     assignable  Service  Contracts,  notifying each such tenant or party of the
     sale of the Premises and  indicating  the new address for notices under the
     Leases and Service Contracts;

          (n) Seller  shall  execute  and  deliver a FIRPTA  affidavit  required
     pursuant to the Treasury Department  Regulations  promulgated under Section
     1445 of the Internal  Revenue Code of 1986,  as amended,  in respect of the
     Property.  Seller  understands that such  certification will be retained by
     Purchaser  and will be made  available to the Internal  Revenue  Service on
     request;

          (o) Each of Seller and  Purchaser  shall execute and deliver a closing
     statement setting forth with specificity the adjustments made in accordance
     with Article 8 hereof.

          (p) Seller shall credit against the Cash Balance the security deposits
     held by Seller as landlord under the Leases (together with accrued interest
     thereon,  if any,  less  Seller's  proportionate  share  of  administrative
     expenses,  to the extent such  administrative  expenses  are allowed by the
     applicable  Lease or by law).  Notwithstanding  the  foregoing,  any tenant
     security  deposits held in a form other than cash shall be  transferred  to
     Purchaser by way of appropriate instruments of transfer or assignment.

<PAGE>

          (q) Purchaser shall deliver to Seller evidence reasonably satisfactory
     to Seller of the due authorization, execution and delivery of the documents
     and  instruments to be executed by Purchaser at Closing in accordance  with
     the terms of this Agreement.

                         ARTICLE 8. CLOSING ADJUSTMENTS
                         ------------------------------

     The following are to be adjusted and prorated  between Seller and Purchaser
as of 11:59 p.m. on the day  preceding  the Closing  Date,  based upon a 365 day
year,  with Seller  deemed to be the owner of the Property on the day  preceding
the Closing  Date and  Purchaser  deemed to be the owner of the  Property on the
Closing Date.

     8.1. Fixed Rents.

          (a) Fixed  rents  (collectively,  "FIXED  RENTS")  paid or  payable by
     tenants under the Leases in connection with their occupancy of the Premises
     shall be adjusted and prorated on an if, as and when collected  basis.  Any
     Fixed Rents  collected  by  Purchaser  or Seller after the Closing from any
     tenant who owes  Fixed  Rents for  periods  prior to the  Closing  shall be
     applied  (i) first,  in payment of Fixed  Rents owed by such tenant for the
     month in which the Closing  Date occurs,  (ii) second,  in payment of Fixed
     Rents owed by such  tenant for the month  preceding  the month in which the
     Closing  Date occurs,  (iii) third,  in payment of Fixed Rents owed by such
     tenant for the period  following the month in which Closing Date occurs and
     (iv)  fourth,  after Fixed Rents for all current  periods have been paid in
     full, in payment of Fixed Rents owed by such tenant for the period prior to
     the month  preceding the month in which the Closing Date occurs.  Each such
     amount,  less any costs of collection  (including  reasonable counsel fees)
     reasonably  allocable  thereto,  shall be adjusted and prorated as provided
     above,  and the party who receives  such amount shall  promptly pay over to
     the other party the portion thereof to which it is so entitled.

          (b) Any  payment by a tenant in an amount less than the full amount of
     Fixed Rents and Overage  Rents then due and payable by such tenant shall be
     applied  first to Fixed Rents (in the order of priority as to time  periods
     as is set forth in  Section  8.1(a)  above) to the extent of all such Fixed
     Rents then due and payable by such tenant,  and thereafter to Overage Rents
     (in the order of  priority  as to time  periods  as is set forth in Section
     8.2(d) below).

     8.2. Overage Rents.

          (a) With  respect to any Lease that  provides  for (i) the  payment of
     additional  rent based upon a percentage of the tenant's  business during a
     specified  annual or other  period  (sometimes  referred to as  "percentage
     rent"),  (ii) so-called  common area  maintenance or "cam" charges or (iii)
     so-called "escalation rent" or additional rent based upon increases in real
     estate  taxes or  operating  expenses  or labor  costs or cost of living or
     porter's wages or otherwise (such percentage rent, cam charges,  escalation
     rent and additional rent being collectively  called "OVERAGE RENTS"),  such
     Overage  Rents  shall  be  adjusted  and  prorated  on an if,  as and  when
     collected basis.

          (b)  Overage  Rents in respect of the  accounting  period in which the
     Closing Date occurs shall be apportioned between Seller and Purchaser as of
     11:59 P.M. of the day preceding the Closing Date, with Seller receiving the
     proportion  of such  Overage  Rents  (less a like  portion of any costs and
     expenses (including  reasonable counsel fees) incurred in the collection of
     such Overage

<PAGE>

     Rents) that the portion of such accounting period prior to the Closing Date
     bears to the entire such  accounting  period,  and Purchaser  receiving the
     proportion  of such  Overage  Rents  (less a like  portion of any costs and
     expenses (including  reasonable counsel fees) incurred in the collection of
     such  Overage  Rents) that the portion of such  accounting  period from and
     after the Closing  Date bears to the entire  such  accounting  period.  If,
     prior to the Closing,  Seller  shall  receive any  installments  of Overage
     Rents attributable to Overage Rents for periods from and after the Closing,
     such sum shall be  apportioned  at the  Closing.  If,  after  the  Closing,
     Purchaser shall receive any  installments of Overage Rents  attributable to
     Overage  Rents for periods  prior to the Closing,  such sum (less any costs
     and expenses  (including  reasonable counsel fees) incurred by Purchaser in
     the  collection of such Overage Rents) shall be paid by Purchaser to Seller
     promptly after Purchaser receives payment thereof.

          (c) Any payment by a tenant on account of Overage Rents (to the extent
     not  applied  against  Fixed  Rents  due  and  payable  by such  tenant  in
     accordance  with Section  8.1(b)  above) shall be applied to Overage  Rents
     then due and payable in the  following  order of  priority:  (i) first,  in
     payment of Overage Rents for the accounting period preceding the accounting
     period in which the Closing  Date occurs;  and (ii)  second,  in payment of
     Overage Rents for the accounting period in which the Closing Date occurs.

          (d) To the extent that any portion of Overage  Rents is required to be
     paid  monthly by tenants on account of  estimated  amounts for any calendar
     year (or, if applicable, any lease year or tax year or any other applicable
     accounting  period),  and at the end of such  calendar year (or lease year,
     tax year or other applicable  accounting  period, as the case may be), such
     estimated  amounts are to be recalculated  based upon the actual  expenses,
     taxes and other relevant  factors for that calendar  (lease or tax) year or
     other applicable accounting period, with the appropriate  adjustments being
     made with such  tenants,  then such  portion of the Overage  Rents shall be
     prorated  between  Seller  and  Purchaser  at the  Closing  based  on  such
     estimated  payments actually paid by tenants (i.e., with Seller entitled to
     retain all monthly or other periodic  installments  of such amounts paid by
     tenants  with  respect  to  periods  prior to the  calendar  month or other
     applicable installment period in which the Closing occurs, Seller to pay to
     Purchaser at the Closing all monthly or other periodic installments of such
     amounts  theretofore  received by Seller with respect to periods  following
     the  calendar  month or other  applicable  installment  period in which the
     Closing occurs and Seller and Purchaser to apportion as of the Closing Date
     all monthly or other periodic  installments of such amounts paid by tenants
     with respect to the calendar month or other applicable  installment  period
     in which the  Closing  occurs).  At the  time(s) of final  calculation  and
     collection from (or refund to) each tenant of the amounts in reconciliation
     of actual  Overage Rents for a period for which  estimated  amounts paid by
     such  tenant have been  prorated,  there  shall be a  re-proration  between
     Seller and  Purchaser.  If, with  respect to any tenant,  the  recalculated
     Overage  Rents  exceeds  the  estimated  amount paid by such  tenant,  upon
     collection  from  the  tenant,  (i)  the  entire  excess  shall  be paid by
     Purchaser to Seller, if the accounting period for which such  recalculation
     was  made  expired  prior to the  Closing  and (ii)  such  excess  shall be
     apportioned  between  Seller and  Purchaser  as of the Closing Date (on the
     basis  described in the first  sentence of Section  8.2(c)  above),  if the
     Closing occurred during the accounting period for which such  recalculation
     was made, with Purchaser  paying to Seller the portion of such excess which
     Seller is so  entitled  to receive.  If,  with  respect to any tenant,  the
     recalculated  Overage Rents are less than the estimated amount paid by such
     tenant,  (1) the entire shortfall shall be paid by Seller to Purchaser (or,
     at Seller's option,  directly to the tenant in question), if the accounting
     period for which such  recalculation  was made expired prior to the Closing
     and (2) such shortfall shall be apportioned

<PAGE>

     between Seller and Purchaser as of the Closing Date (on the basis described
     in the first  sentence of Section 8.2(c)  above),  if the Closing  occurred
     during the accounting  period for which such  recalculation  was made, with
     Seller paying to Purchaser (or, at Seller's option,  directly to the tenant
     in question) the portion of such shortfall so allocable to Seller.

          (e) Purchaser shall have no obligation to collect past due Fixed Rents
     or Overage Rents,  provided that promptly following  Purchaser's receipt of
     any such amounts,  Purchaser shall pay the same to Seller.  Seller reserves
     the right to bill tenants who owe Fixed Rents and Overage Rents for periods
     prior to the Closing  (including  any Overage Rents payable with respect to
     periods  prior to Closing but which are not due and payable until after the
     Closing Date) and take such actions as Seller deems  appropriate to collect
     such amounts, including, without limitation, the prosecution of one or more
     lawsuits, but Seller shall not be entitled to evict (by summary proceedings
     or otherwise) any such tenants.

     8.3. Real Estate Taxes. Real estate taxes shall be adjusted and prorated on
the basis of the fiscal  year for which  assessed.  If the  Closing  shall occur
before  the tax rate or  assessed  valuation  is  fixed  for the  Premises,  the
apportionment  of real estate taxes for such Premises shall be upon the basis of
the tax rate for the  preceding  year  applied to the most  recently  applicable
assessed  valuation of such  Premises,  subject to further and final  adjustment
when the tax rate and/or  assessed  valuation for such Premises is fixed for the
year in which the  Closing  occurs.  In the event that the  Premises or any part
thereof shall be or shall have been  affected by an  assessment or  assessments,
whether or not the same become payable in annual installments,  Seller shall, at
the Closing,  be responsible for any  installments  due prior to the Closing and
Purchaser shall be responsible for any installments due on or after the Closing.

     8.4.  Utility  Charges.  Seller  shall  use  reasonable  efforts  to obtain
readings of meters  measuring  utility  consumption at the Property  (other than
utilities which are the  responsibility of tenants under Leases) for all periods
through (and  including) the date preceding the Closing Date.  Seller shall pay,
and be  responsible,  for all bills rendered on the basis of such  readings.  If
such  readings are not obtained for any metered  utility,  then, at the Closing,
apportionment  shall be made on the basis of the most  recent  period  for which
such  readings are  available.  Upon the taking of subsequent  actual  readings,
there shall be a recalculation of the applicable utility charges,  and Seller or
Purchaser,  as the case may be, shall  promptly  remit to the other party hereto
any   amounts  to  which  such  party  shall  be  entitled  by  reason  of  such
recalculation.  Unmetered  water charges or sewer rents shall be  apportioned on
the basis of the  charges  therefor  for the same  period  during  the  previous
calendar year, but applying the current rate thereto.  As to any utility charges
or sewer rents  payable by tenants,  Purchaser  shall close title and accept the
delivery  of the Deed  subject  to such  unpaid  charges  and rents and any lien
resulting  therefrom,  without credit against the Purchase Price or any claim or
right of action against Seller.

     8.5. Fuel. Fuel on hand, if any, based on an estimate  provided by Seller's
fuel  supplier,  at Seller's cost valued at the price  therefor  charged by such
supplier including any applicable taxes.

     8.6. Other  Adjustments.  The following  items shall also be adjusted as of
11:59 P.M. on the date  preceding  the Closing  Date:  (i) charges and  payments
under Service Contracts assigned to Purchaser;  (ii) fees and payments,  if any,
under  Licenses  and Permits  assigned to  Purchaser;  (iii)  revenues,  if any,
arising out of telephone  booths,  vending machines,  or other  income-producing

<PAGE>

agreements  and  (iv)  maintenance  supplies  in  unopened  containers  based on
Seller's actual cost therefor, including sales and/or use tax.

     Any errors or omissions in computing  adjustments  at the Closing  shall be
promptly  corrected,  provided  that the party  seeking to correct such error or
omission  shall have  notified  the other  party of such error or omission on or
prior  to the  date  that  is one (1)  year  following  the  Closing  Date.  The
provisions of this Article 8 shall survive Closing.

                    ARTICLE 9. REPRESENTATIONS AND WARRANTIES
                    -----------------------------------------

     9.1. Basic Representations of Purchaser.

     Purchaser,  as of the date  hereof,  represents  and  warrants to Seller as
follows:

          (a) Purchaser is a corporation,  duly organized,  validly existing and
     in good standing under the laws of the State of New Jersey.

          (b)  Purchaser  has full power and authority to enter into and perform
     this Agreement, the documents to be executed and delivered pursuant hereto,
     and each and all of the  transactions  contemplated  hereby and  thereby in
     accordance with the terms hereof and thereof.

          (c)  The  individuals  executing  this  Agreement,  and  each  of  the
     documents to be executed and delivered in connection  herewith on behalf of
     Purchaser  have full power and authority to do so. This  Agreement and each
     of the  Purchaser  Closing  Documents  are,  or will be when  executed  and
     delivered,   the  legal  valid  and  binding   obligations   of  Purchaser,
     enforceable  against  Purchaser  in  accordance  with the terms  hereof and
     thereof.

          (d) Purchaser has not filed any petition seeking or acquiescing in any
     reorganization,   arrangement,  composition,   readjustment,   liquidation,
     dissolution  or similar  relief  under any law  relating to  bankruptcy  or
     insolvency,  nor  has any  such  petition  been  filed  against  Purchaser.
     Purchaser  is not  insolvent  and  the  consummation  of  the  transactions
     contemplated by this Agreement  shall not render  Purchaser  insolvent.  No
     general assignment of Purchaser's property has been made for the benefit of
     creditors,  and  no  receiver,  master,  liquidator  or  trustee  has  been
     appointed for Purchaser or any of its property.

          (e) There are no actions or  proceedings  pending  or, to  Purchaser's
     actual knowledge, threatened, against Purchaser which could have a material
     adverse affect on Purchaser's ability to perform its obligations hereunder.

          9.2. Basic Representations of Seller.

          Seller, as of the date hereof, represents and warrants to Purchaser as
     follows:

          (a) Seller is a limited liability company,  duly organized and validly
     existing and in good standing under the laws of the State of Delaware.

<PAGE>

          (b) Seller has full power and authority to enter into and perform this
     Agreement  and to enter into the  documents  to be executed  and  delivered
     pursuant hereto, and each and all of the transactions  contemplated  hereby
     and thereby in accordance with the terms hereof and thereof.

          (c) The individuals  executing this Agreement on behalf of Seller, and
     the  individuals  executing  each  of  the  documents  to be  executed  and
     delivered in connection herewith,  on behalf of Seller, have full power and
     authority to do so. This Agreement and each of the Seller Closing Documents
     are, or will be when  executed and  delivered,  the legal valid and binding
     obligations of Seller,  enforceable  against Seller in accordance  with the
     terms hereof and thereof.

          (d) Seller has not filed any petition  seeking or  acquiescing  in any
     reorganization,   arrangement,  composition,   readjustment,   liquidation,
     dissolution  or similar  relief  under any law  relating to  bankruptcy  or
     insolvency,  nor has any such petition been filed against Seller. Seller is
     not insolvent and the consummation of the transactions contemplated by this
     Agreement  shall not render  Seller  insolvent.  No general  assignment  of
     Seller's  property  has been  made for the  benefit  of  creditors,  and no
     receiver,  master,  liquidator or trustee has been  appointed for Seller or
     any of its property.

          (e) There are no actions or proceedings pending or, to Seller's actual
     knowledge,  threatened,  against Seller which could have a material adverse
     affect on Seller's ability to perform its obligations hereunder.

     9.3. Representations of Seller Regarding the Property.

     Seller,  as of the date  hereof,  represents  and  warrants to Purchaser as
follows:

          (a) There are no leases,  licenses or occupancy  agreements  affecting
     the Premises,  other than the Existing Leases. The information contained in
     the rent roll annexed hereto as Exhibit H is true,  complete and correct in
     all material respects;  provided,  however,  because Purchaser will have an
     opportunity to review each of the Existing Leases and the New Leases during
     the Due  Diligence  Period,  in the  event  that  there is any  discrepancy
     between the information contained in Exhibit H and the terms and provisions
     of any of the Existing  Leases or New Leases,  the terms and  provisions of
     the Existing Leases and the New Leases shall be effective as against Seller
     and  Purchaser,  and  Seller  shall  not be  deemed  to have  breached  the
     representation  contained  in this Section  9.3(a)  clause (a) by reason of
     such  discrepancy.  Except as otherwise  noted in Exhibit I annexed hereto,
     (i) each of the  Existing  Leases  is in full  force  and  effect,  (ii) no
     written  notice  of a  default  on the  part of a tenant  under  any of the
     Existing Leases has been sent by Seller,  other than a notice setting forth
     a default which, as of the date hereof, has been cured and (iii) no written
     notice of a default on the part of the landlord  under the Existing  Leases
     has been  received by Seller,  other than a notice  setting forth a default
     which, as of the date hereof, has been cured.

          (b) Subject to the provisions of Section 15.6 hereof,  Seller has paid
     (or will on or before  Closing pay) all Leasing  Costs which pertain to the
     current terms of the Leases, other than Leasing Costs payable in connection
     with (A) the renewal or extension of an Existing Lease or a New Lease,  the
     effective date of which shall not yet have occurred on the date hereof, (B)
     the leasing of space  pursuant to the exercise of a right of first  refusal
     or first offer or similar  right  contained  in an Existing  Lease or a New
     Lease,  the effective date of which shall not yet have occurred on the date

<PAGE>

     hereof and (C) the failure  timely to exercise  any  termination  right set
     forth in an Existing Lease or a New Lease at any time after the date hereof
     (any such transaction, a "Contingent Commission Event".)

          (c) There are no service contracts, brokerage agreements,  maintenance
     agreements or other agreements  affecting the Premises,  other than (i) the
     Existing Leases,  (ii) the Existing Service Contracts and (iii) any service
     contracts  which are  terminable  upon not more than 30 days notice without
     penalty or premium.

          (d) There are no actions or proceedings pending or, to Seller's actual
     knowledge,  threatened, with respect to the Property, which are not covered
     by insurance.

          (e)  There  are no  pending  or, to  Seller's  knowledge,  threatened,
     eminent domain or condemnation proceedings with respect to the Property.

          (f) The insurance  coverages with respect to the Premises described in
     Exhibit J annexed hereto are in full force and effect.

     The  representations  of Seller  contained  in Section 9.3 (a) - (e) hereof
shall survive Closing for the Representation Survival Period.

                                ARTICLE 10. TITLE
                                -----------------

         10.1.  Acceptable Title.  Seller shall convey, or cause to be conveyed,
and  Purchaser  shall  accept,  title to the  Premises,  as of the Closing Date,
subject to the Permitted Exceptions. The term "PERMITTED EXCEPTIONS" shall mean,
collectively,  (i) the matters set forth in Exhibit K annexed hereto, (ii) Title
Exceptions that Title Insurer shall be willing to omit as exceptions to coverage
with respect to any owner's or lender's  mortgage  insurance  policy obtained by
Purchaser, (iii) the standard exceptions and provisions contained in the form of
insuring agreement employed by Title Insurer and (iv) any exceptions and matters
that are  approved,  waived  or  deemed  to have  been  approved  or  waived  by
Purchaser.

         10.2. Inability to Convey Acceptable Title. Purchaser agrees to obtain,
at its expense,  a title report with respect to the Premises  from Title Insurer
(the  "TITLE  REPORT"),  and an update  of the  existing  survey of the  Subject
Premises by a licensed New Jersey  surveyor.  Purchaser  shall furnish a copy of
the Title Report and survey to Seller  promptly after  Purchaser  receives each,
but in no event later than fifteen (15) days following the Effective Date. On or
before the date which is twenty (20) days after the Effective  Date ("TIME BEING
OF THE ESSENCE),  Purchaser may furnish Seller with a written notice (the "TITLE
OBJECTION  NOTICE") of those Title  Exceptions  noted in the Title Report or the
survey  update  which are not  Permitted  Exceptions  and as to which  Purchaser
objects.  In  addition,  within  five (5)  days of  Purchaser's  receipt  of any
continuation  of the Title  Report,  Purchaser  may furnish  Seller with written
notice of Title Exceptions noted therein which are not Permitted  Exceptions and
as to which Purchaser objects,  provided such Title Exceptions were not noted in
the Title Report (or any prior  continuation  thereof) or the survey update (any
such notice shall also constitute a "TITLE OBJECTION  NOTICE").  Purchaser shall
be deemed to have  waived any  objection  to Title  Exceptions  set forth in the
Title Report (or any continuation  thereof) or the survey update to which timely
objection  is not  made  in a  Title  Objection  Notice.  For  purposes  of this

<PAGE>

Agreement,  the  term  "TITLE  EXCEPTIONS"  shall  mean any  lien,  encumbrance,
security interest, charge, reservation, lease, tenancy, easement,  right-of-way,
encroachment,  restrictive  covenant,  condition  or  limitation  affecting  the
Property.

         10.3.  Seller's  Rights.  Seller  shall  have  the  right,  in its sole
discretion,  upon notice to Purchaser (the "TITLE RESPONSE NOTICE") given within
ten (10) days after Seller's  receipt of any Title Objection  Notice (TIME BEING
OF THE  ESSENCE),  to elect to  either  (i) take such  action  as  Seller  deems
advisable to discharge those Title Exceptions which are not Permitted Exceptions
and are set forth in the Title  Objection  Notice (the "TITLE  DEFECTS") or (ii)
terminate this  Agreement,  whereupon the Deposit shall be refunded to Purchaser
and  thereafter  neither  party hereto shall have any further  obligation to the
other party hereto,  with the  exception of those  obligations  which  expressly
survive the termination of this Agreement. If Seller fails timely to deliver the
Title Response Notice,  then Seller shall be deemed to have elected to terminate
this Agreement  pursuant to clause (ii) above. If Seller,  in its Title Response
Notice,  elects to take  action  to  remove,  remedy  or  comply  with the Title
Defects,  Seller shall be entitled to one or more  adjournment(s) of the Closing
for up to 30 days in the aggregate, to discharge the Title Defects. If Seller is
unable to remove,  remedy or comply with such Title Defects at the expiration of
such adjournment(s),  then this Agreement shall be deemed to be terminated as of
the last adjourned date of Closing. Upon such termination,  the Deposit shall be
refunded to Purchaser and neither party hereto shall have any further obligation
to the other party,  with the  exception of those  obligations  which  expressly
survive the termination of this  Agreement.  Except as set forth in Section 10.5
hereof,  nothing in this Agreement  shall be deemed to require Seller to take or
bring any  action or  proceeding  or any other  steps to remove any defect in or
objection to title or to expend any moneys  therefor,  nor shall  Purchaser have
any right of action against Seller, at law or in equity, therefor.

     10.4. Purchaser's Right to Accept Title. Purchaser may, upon written notice
to Seller at any time on or before the  Closing  Date (as the same may have been
adjourned by Seller in accordance  with the  provisions of Section 10.3 hereof),
elect to accept such title as Seller can convey,  notwithstanding  the existence
of any Title Defects.  In such event,  (i) this Agreement  shall remain in force
and effect,  (ii) the parties shall proceed to Closing and (iii) Purchaser shall
not be entitled to any abatement of the Purchase Price,  any credit or allowance
of any kind or any  claim or right of  action  against  Seller  for  damages  or
otherwise by reason of the Title Defects.

     10.5.  Seller's  Obligation.  Notwithstanding  anything  contained  in this
Article  10 the  contrary,  Seller  shall at or prior to Closing  discharge  any
mortgage  affecting the Property and any other Title Defects which are knowingly
and  intentionally  created by Seller  subsequent to the Effective Date or which
may be discharged solely by the payment of a sum of money, not to exceed $50,000
in the aggregate.

     10.6. Title Affidavits, Etc.

          (a) If requested  by Title  Insurer,  Seller shall  deliver (i) one or
     more  reasonable and customary title  affidavits  executed by Seller (or an
     officer  thereof),  certifying to factual matters  concerning Seller or the
     Premises  which are within the  knowledge  of Seller,  (including,  without
     limitation, any reasonable and customary affidavit which may be required in
     order to omit from title  insurance  coverage any exceptions for judgments,
     bankruptcies or other returns against persons or

<PAGE>

     entities,  other  than  Seller,  whose  names are the same as or similar to
     Seller's name), and (ii) documents evidencing Seller's payment of franchise
     or unincorporated business taxes, as applicable.

          (b) If requested by Title Insurer,  Purchaser shall deliver (i) one or
     more reasonable and customary title affidavits executed by Purchaser (or an
     officer thereof), certifying to factual matters concerning Purchaser or the
     Premises  which are  within  the  knowledge  of  Purchaser  (or an  officer
     thereof)  (including,  without  limitation,  any  reasonable  and customary
     affidavit  which  may be  required  in order to omit from  title  insurance
     coverage  any  exceptions  for  judgments,  bankruptcies  or other  returns
     against persons or entities, other than Purchaser, whose names are the same
     as  or  similar  to  Purchaser's  name),  and  (ii)  documents   evidencing
     Purchaser's  payment of  franchise or  unincorporated  business  taxes,  as
     applicable, or dissolution taxes.

     10.7. Violations.  Seller shall have no responsibility to cure, or cause to
be cured,  any Violations , whether the same have been noted or issued as of the
date hereof or are first noted or issued after the date hereof,  and  Purchaser,
in all events,  agrees to close title to the Premises subject  thereto.  As used
herein, the term "Violation(s)" shall mean any violation of any law or municipal
ordinance,  order or  requirement  noted or issued  against the  Property by any
federal, state or municipal department having jurisdiction over the Property.

                      ARTICLE 11. CASUALTY AND CONDEMNATION
                      -------------------------------------

         11.1.    Casualty.

          (a) For  purposes of this Article 11, the  following  terms shall have
     the meanings indicated:

               "MAJOR  CASUALTY"  means  a  fire  in or  other  casualty  to the
          Building  which causes damage or injury to the Premises and results in
          Restoration Costs in excess of an amount equal to ten percent (10%) of
          the Purchase Price.

               "RESTORATION  COSTS"  means  the cost to repair  or  restore  (as
          reasonably  determined by an architect or engineer  selected by Seller
          and approved by Purchaser,  which approval  shall not be  unreasonably
          withheld, conditioned or delayed) the damage to the Building caused by
          a fire or other casualty,  exclusive of the cost of any such repair or
          restoration for which Seller,  as the landlord under any Lease, is not
          responsible.

          (b) If,  between the date hereof and the Closing,  there shall occur a
     fire  or  other  casualty  affecting  the  Building  which  is not a  Major
     Casualty,  then  Purchaser  shall have no right to terminate this Agreement
     and shall purchase the Premises in its damaged  condition without reduction
     of or offset against the Purchase Price or any other claim against  Seller.
     Seller  shall  assign to  Purchaser  the  right to  receive  any  insurance
     proceeds  payable  to Seller  as a result  of such fire or other  casualty;
     provided,  however,  that Seller shall be entitled to retain (to the extent
     theretofore paid to Seller), and shall not be obligated to assign the right
     to receive (to the extent not  theretofore  paid to  Seller),  an amount of
     such  insurance  proceeds  equal  to  Seller's  reasonable,   out-of-pocket
     expenses,  if any,  incurred in collecting  such proceeds and repairing the
     damage caused by fire or other casualty.

<PAGE>

          (c) If,  between the date hereof and the Closing,  there shall occur a
     fire or other casualty  affecting the Building  which is a Major  Casualty,
     then  Purchaser  shall have the option,  to be exercised by notice given to
     Seller  within  fifteen  (15)  days  after  the date of such  casualty,  to
     terminate  this  Agreement.  If Purchaser  shall so elect to terminate this
     Agreement,  the Deposit shall be refunded to Purchaser,  whereupon  neither
     party hereto  shall have any further  obligation  to the other  hereunder),
     except for those  obligations  which  expressly  survive the termination of
     this Agreement. If Purchaser shall not elect to terminate this Agreement as
     provided in this subclause  (c), then this  Agreement  shall remain in full
     force and effect with respect and the  provisions of Section  11.1(b) above
     shall apply to such damage and any insurance proceeds payable in connection
     therewith.

          (d) In no event shall Seller have any  obligation to repair any damage
     or  destruction  to the Building,  but Seller shall have the right to do so
     and utilize insurance proceeds for such purpose.

          (e) Seller and Purchaser  expressly intend that the provisions of this
     Section 11.1 shall govern in the event of a fire or other casualty.

     11.2. Condemnation.

          (a) If, between the date hereof and the Closing,  any  condemnation or
     eminent domain  proceedings  are initiated which would result in a material
     taking,  then  either  Seller  or  Purchaser  may elect to  terminate  this
     Agreement  by giving  written  notice of its  election  to the other  party
     within fifteen (15) days after receiving notice of such prospective taking.
     If Seller or Purchaser  shall so elect to  terminate  this  Agreement,  the
     Deposit  shall be refunded to  Purchaser,  whereupon  neither  party hereto
     shall have any further obligation to the other hereunder,  except for those
     obligations which expressly  survive the termination of this Agreement.  If
     neither  party so elects to  terminate  this  Agreement,  then the  parties
     hereto shall proceed to the Closing without  reduction of or offset against
     the Purchase Price and Purchaser  shall have no other claim against Seller.
     In such event,  all of  Seller's  right,  title and  interest in and to any
     condemnation  proceeds  paid or payable in  connection  therewith  shall be
     assigned to  Purchaser.  In no event shall  Seller have any  obligation  to
     repair or restore  the  Premises  or any  portion  thereof by reason of any
     condemnation..

          (b) If, between the date hereof and the Closing,  any  condemnation or
     eminent  domain  proceedings  are  initiated  which  would not  result in a
     material  taking,  then neither  Seller nor Purchaser  may  terminate  this
     Agreement and the parties shall proceed to the Closing without reduction of
     or offset  against the  Purchase  Price and  Purchaser  shall have no other
     claim  against  Seller.  In such event,  all of Seller's  right,  title and
     interest in and to any condemnation  proceeds paid or payable in connection
     therewith shall be assigned to Purchaser. In no event shall Seller have any
     obligation  to repair or restore the  Premises  or any  portion  thereof by
     reason of any condemnation.

          (c) For purposes of this Section  11.2, a taking shall be deemed to be
     a "material  taking" if it would result in a diminution in the value of the
     Property  which  exceeds  ten  percent  (10%)  of the  Purchase  Price,  as
     reasonably determined by Seller.

<PAGE>

                        ARTICLE 12. DEFAULT AND REMEDIES
                        --------------------------------

     12.1.  Default By  Purchaser.  If  Purchaser  (i)  defaults  in its Closing
obligations (i.e., defaults in the payment of the Purchase Price or otherwise in
the  performance of any of its  obligations  hereunder which are to be performed
on, or as of, the Closing Date), or (ii) otherwise materially defaults hereunder
and such other  material  default is not cured within ten (10) days after notice
thereof from Seller to Purchaser,  then, and in any of such events,  Seller,  as
its sole remedy  therefor,  may terminate  this  Agreement by written  notice to
Purchaser,  whereupon the Deposit shall be paid to Seller as liquidated  damages
on  account of such  default,  and,  thereafter,  neither  party  shall have any
further rights or obligations hereunder other than those which expressly survive
the termination of this Agreement. Seller and Purchaser agree that the aforesaid
liquidated  damages are a fair and reasonable amount to be retained by Seller as
agreed and liquidated  damages in light of Seller's removal of the Premises from
the market and the costs  incurred by Seller and shall not  constitute a penalty
or a forfeiture.

         12.2.  Default  By  Seller.  If  Seller  (i)  defaults  in its  Closing
obligations  (i.e.,  defaults  in the  performance  of  any  of its  obligations
hereunder  which are to be performed  on, or as of, the Closing  Date),  or (ii)
otherwise  materially  defaults hereunder and such material default is not cured
within ten (10) days after notice thereof from Purchaser to Seller, then, and in
either such event, Purchaser may, as its sole remedy therefor, either (x) pursue
an action  for  specific  performance  of this  Agreement  by Seller  hereunder,
without  abatement,  credit  against or reduction  of the Purchase  Price or (y)
terminate this Agreement by written notice to Seller and Escrowee, whereupon the
Deposit shall be refunded to Purchaser;  it being  understood and agreed that in
no event shall Purchaser be entitled to money damages.  If Purchaser shall elect
to so terminate this Agreement,  then,  upon such election,  neither party shall
have any  further  rights  or  obligations  hereunder  other  than  those  which
expressly  survive  the  termination  of this  Agreement.  Except  as  expressly
provided in this Section 12.2,  Purchaser  waives any other right or remedy,  at
law or in equity,  which Purchaser may have or be entitled to as a result of any
default by Seller.

     12.3.  Post-Closing  Breach of  Representation.  If  Purchaser  proceeds to
Closing  with  knowledge  of  any  inaccuracy  in a  representation  of  Seller,
Purchaser shall be deemed to have waived  objection to such inaccuracy and shall
have no right of action or claim  against  Seller for  damages or  otherwise  by
reason  thereof.  If,  after the  Closing,  Purchaser  shall  first  learn of an
inaccuracy  in any  express  representation  of Seller  (made as of the  Closing
Date), which representation expressly survives Closing, then Purchaser (A) shall
have a claim for  damages on account  thereof  and (B)  Seller  shall  indemnify
Purchaser for reasonable attorneys' fees and disbursements incurred by Purchaser
in connection with any third-party  actions or proceedings which arise by reason
of such  breach of  representation,  provided  that (i) any claim for damages or
indemnification  not brought within the Representation  Survival Period shall be
deemed  waived,  (ii)  Purchaser  hereby  waives the right to collect or seek to
collect  consequential  or punitive  damages and (iii) Purchaser  reasonably can
demonstrate  that  the  damages  sustained  by  Purchaser  as a  result  of such
inaccuracy exceed $100,000.

                               ARTICLE 13. BROKER
                               ------------------

     13.1. Broker.  Seller and Purchaser each represent and warrant to the other
that each has had no  conversations  or  dealings  with any  broker or finder in
connection with the transactions

<PAGE>

contemplated  hereby,  other  than  Broker.   Purchaser  and  Seller  (each,  an
"INDEMNIFYING  PARTY") shall indemnify,  defend and hold the other harmless from
and against any and all loss, cost or expense  (including,  without  limitation,
reasonable  attorneys'  fees)  arising by reason of a claim for a commission  or
other  compensation  made by a broker or finder (other than Broker)  claiming to
have  dealt  with  the  Indemnifying  Party.  Seller  shall  pay  any  brokerage
commission due to Trillium pursuant to a separate written  agreement.  Purchaser
shall  pay  any  commission  due to  Landmark  pursuant  to a  separate  written
agreement.  The  provisions  of this  Article  13 shall  survive  Closing or any
termination of this Agreement.

                             ARTICLE 14. ASSIGNMENT
                             ----------------------

     14.1. No Assignment  by  Purchaser.  Neither this  Agreement nor any of the
rights of Purchaser hereunder (nor the benefits of such rights) may be assigned,
transferred or encumbered  without Seller's prior written consent (which consent
may be withheld in Seller's  sole and  absolute  discretion)  and any  purported
assignment, transfer or encumbrance without Seller's prior written consent shall
be void.  Purchaser  expressly  covenants  and agrees that (a) if Purchaser is a
corporation,  a sale or transfer  of more than fifty  (50%)  percent (at any one
time or, in the  aggregate  from time to time) of the shares of any class of the
issued and  outstanding  stock of Purchaser,  its successors or assigns,  or the
issuance  of  additional  shares of any class of its stock to the extent of more
than fifty  (50%)  percent  (at any one time or, in the  aggregate  from time to
time) of the number of shares of said class of stock issued and  outstanding  on
the date hereof,  (b) if Purchaser is a  partnership,  joint  venture or limited
liability  company,  a sale or transfer of more than fifty (50%) percent (at any
one time or,  in the  aggregate  from  time to time) of the  partnership,  joint
venture,  membership or other unincorporated association interests of Purchaser,
its  successors  or assigns,  or the issuance of additional  partnership,  joint
venture or member  interests of any class to the extent of more than fifty (50%)
percent (at any one time or, in the  aggregate  from time to time) of the amount
of  partnership,  joint  venture or member  interests  issued on the date hereof
shall, in any such case, constitute an assignment of this Agreement.  Unless, in
each instance,  the prior written consent of Seller has been obtained,  any such
assignment  shall  constitute a material  default under this Agreement and shall
entitle Seller to exercise all rights and remedies under this Agreement,  at law
or equity, in the case of such a default.

     14.2. Permitted Assignment to Affiliate.  Notwithstanding the provisions of
Section 14.1 above to the contrary,  the named Purchaser in this Agreement shall
have the  one-time  right to  assign  its  rights  and  obligations  under  this
Agreement to an Affiliate of such named  Purchaser  effective on or prior to the
Closing,  provided  that on or prior to the effective  date of such  assignment,
Purchaser  delivers to Seller  evidence of the  ownership of  Purchaser  and the
proposed  assignee so as to permit Seller to verify that such proposed  assignee
is an Affiliate of Purchaser and (c) on or prior to the  effective  date of such
assignment,  the Purchaser shall deliver to Seller a written assumption, in form
reasonably  satisfactory  to Seller and duly  executed and  acknowledged  by the
assignee,  in which the assignee agrees to assume all of Purchaser's  covenants,
agreements  and  obligations  under  this  Agreement.  As of  the  date  of  the
assignment of this  Agreement to an Affiliate in  accordance  with the foregoing
provisions of this Section 14.2, the  representations  of Purchaser named herein
set  forth in  Section  9.1  hereof  shall be  remade  as to the  Affiliate,  as
Purchaser,  except that the  representations and warranties set forth in Section
9.1(a) hereof shall be modified accordingly. Purchaser named

<PAGE>

herein shall remain fully liable for all of  Purchaser's  covenants,  agreements
and  obligations  under  this  Agreement   notwithstanding  any  such  permitted
assignment pursuant to this Section 14.2.

                              ARTICLE 15. COVENANTS
                              ---------------------

     15.1. Operation of Premises.  Between the date hereof and the Closing Date,
Seller  shall  continue to maintain  the  Premises  in the  ordinary  course and
substantially  in  accordance  with the  practices  and  procedures  customarily
followed by Seller in the  maintenance of the Premises prior to the date hereof;
provided,  however,  that Seller shall have no obligation to make any repairs or
expenditures that are capital in nature.

     15.2. Insurance. Between the date hereof and the Closing Date, Seller shall
either  (a)  maintain  in full  force and  effect  the fire and  other  casualty
insurance  coverages  described in Exhibit J attached hereto or (b) replace such
insurance policies with other policies providing coverage equivalent thereto.

     15.3. Modification of Leases. Between the date hereof and the Closing Date,
Seller  shall not modify or amend any of the  Existing  Leases or any of the New
Leases without Purchaser's prior written consent in each instance, which consent
shall not be unreasonably  withheld;  provided,  however,  Seller shall have the
right,  without Purchaser's consent, to enter into any modification or amendment
of an  Existing  Lease or a New Lease if the same is  required  pursuant  to the
terms of the Existing Lease or the New Lease, as the case may be, or if the same
is entered into to effectuate or memorialize the exercise of any right or option
contained  in the  Existing  Lease or the New  Lease,  as the  case  may be.  If
required,  Purchaser's  consent shall be deemed  granted if not denied by notice
(stating  the grounds for denial with  reasonable  specificity)  given to Seller
within five (5) Business Days after request for such consent by Seller.

     15.4.  Termination of Leases. Between the date hereof and the Closing Date,
Seller  shall not  cancel,  accept the  surrender  of, or  terminate  any of the
Existing Leases or New Leases without  Purchaser's prior written consent in each
instance, which consent shall not be unreasonably withheld;  provided,  however,
Seller shall have the right, without Purchaser's consent, to cancel,  accept the
surrender  of,  or  terminate  an  Existing  Lease  or a New  Lease  (i) if such
cancellation,  surrender  or  termination  is  predicated  upon a default of the
tenant thereunder or (ii) if such cancellation, surrender or termination is made
by the tenant  pursuant to the terms of the Existing Lease or the New Lease,  as
the case may be. If required, Purchaser's consent shall be deemed granted if not
denied by notice  (stating the grounds for denial with  reasonable  specificity)
given to Seller  within five (5) Business Days after request for such consent by
Seller.

     15.5.  New Leases.  Between the date  hereof and the Closing  Date,  Seller
shall not enter into any New Leases without Purchaser's prior written consent in
each instance, which consent shall not be unreasonably withheld.

     15.6. Leasing Costs.  Purchaser shall pay and be solely responsible for the
payment of (or, to extent paid by Seller,  shall reimburse Seller at the Closing
for),  all or a portion of any  Leasing  Costs  paid or payable by the  landlord
under the Leases in  connection  with (i) any New Lease or any  modification  or

<PAGE>

amendment  of any New  Lease  to  which  Purchaser  has  consented  or to  which
Purchaser's consent is not required in accordance with the terms hereof and (ii)
any  modification  or  amendment  of an Existing  Lease to which  Purchaser  has
consented or to which Purchaser's consent is not required in accordance with the
terms hereof,  including any Leasing Costs which arise by reason of a Contingent
Commission Event.

     15.7.  Service  Contracts.  Between the date  hereof and the Closing  Date,
Seller shall not enter into any New Service Contracts or modify, renew or extend
the term of any of the  Existing  Service  Contracts  or New  Service  Contracts
without Purchaser's prior written consent in each instance,  which consent shall
not be unreasonably withheld,  conditioned or delayed; provided, however, Seller
shall have the right, without Purchaser's consent, to enter into any New Service
Contracts and modify, renew or extend the term of any Existing Service Contracts
or New Service  Contracts (i) if the same is cancelable upon no more than thirty
(30) days' notice without payment by Purchaser of a cancellation  fee or (ii) if
the  same is  required  pursuant  to the  terms of any of the  Existing  Service
Contracts or New Service  Contracts or if the same is entered into to effectuate
or  memorialize  the  exercise  of any  right or option on the part of the other
party (i.e., the contractor)  contained in any of the Existing Service Contracts
or New Service  Contracts.  If  required,  Purchaser's  consent  shall be deemed
granted if not denied by notice  (stating the grounds for denial with reasonable
specificity)  given to Seller  within five (5) Business  Days after  request for
such consent by Seller.  Notwithstanding anything contained in this Section 15.7
to the contrary,  Seller shall have the right,  without Purchaser's  consent, to
terminate any one or more of the Existing Service  Contracts and the New Service
Contracts at any time on or prior to the Closing Date.

                            ARTICLE 16. MISCELLANEOUS
                            -------------------------

     16.1. Notices. (a) All notices,  demands, requests and other communications
required  hereunder  shall be in writing and shall be deemed to have been given:
(i) upon delivery, if personally delivered; (ii) three (3) days after deposit in
the  United  States  Mail when  delivered,  postage  prepaid,  by  certified  or
registered  mail;  (iii) one (1)  Business  Day after  deposit with a nationally
recognized  overnight  delivery service marked for delivery on the next Business
Day; or (iv) upon receipt when transmitted by telecopy,  provided that notice is
also sent by one of the foregoing  three methods,  in each case addressed to the
party for whom it is intended at its address hereinafter set forth:

                  If to Seller:

                           Wellsford Capital Properties, LLC
                           c/o Wellsford Real Properties, Inc.
                           535 Madison Avenue
                           26th Floor
                           New York, NY 10022
                           Attention: William Darrow
                           Telecopy No: (212) 421-7244

<PAGE>

                  with a copy to:

                           Robinson Silverman Pearce Aronsohn & Berman LLP
                           1290 Avenue of the Americas
                           New York, New York 10104
                           Attention: Dennis M. Sughrue, Esq.
                           Telecopy No. (212) 541-4630

                  If to Purchaser:

                           CRC Communities, Inc.
                           634 Stangle Road
                           Martinsville, NJ 08836
                           Attention: Carl Chechio
                           Telecopy No. (732) 560-7360

                  with a copy to:

                           Archer & Greiner, P.C.
                           80 Main Street
                           Flemington, New Jersey 08822
                           Attention: Raymond B. Drake, Esq.
                           Telecopy No. (908) 788-7854

                  If to Escrowee:

                           Robinson Silverman Pearce Aronsohn & Berman
                           1290 Avenue of the Americas
                           New York, New York 10104
                           Attention: Dennis M. Sughrue, Esq.
                           Telecopy No. (212) 541-4630.

          (b) Any party may  designate a change of address by written  notice to
     the others given in accordance with the provisions of this Section 16.1.

          (c) The  attorney  for any  party  may send  notices  on that  party's
     behalf.

     16.2.  Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New Jersey.

     16.3. Successors. All of the provisions of this Agreement and of any of the
documents and instruments  executed in connection herewith shall apply to and be
binding upon, and inure to the benefit of Seller and Purchaser, their successors
and their permitted assigns.

     16.4. No Third Party Beneficiary. This Agreement and each of the provisions
hereof are solely for the benefit of  Purchaser  and Seller and their  permitted
assigns.  No  provisions  of  this  Agreement  or of any of  the  documents  and
instruments executed in connection herewith shall be

<PAGE>

construed  as creating in any person or entity other than  Purchaser  and Seller
and their permitted assigns any rights of any nature whatsoever.

     16.5. No Personal  Liability.  Purchaser shall look only to Seller's estate
and  interest  in the  Property  for the  collection  of a  judgement  (or other
judicial  process)  requiring  the  payment of money by Seller in the event that
Purchaser is expressly entitled to a damage claim against Seller pursuant to the
terms of this  Agreement,  and no other  property  or  assets  of  Seller or its
partners, members, officers, managers, shareholders or principals,  disclosed or
undisclosed,   shall  be  subject  to  levy,  execution,   attachment  or  other
enforcement  procedure  for the  satisfaction  of any such damage claim  against
Seller under or with respect to this Agreement. The foregoing provisions of this
Section  are not  intended  to,  and shall  not,  limit any  express  right that
Purchaser might otherwise have to obtain equitable relief  (including the remedy
of specific  performance where applicable and appropriate)  against Seller.  The
terms and provisions of this subsection shall survive the Closing or the earlier
termination of this Agreement.

     16.6.  Entire  Agreement.  This Agreement,  together with the documents and
instruments executed and delivered in connection herewith,  set forth the entire
agreement between Purchaser and Seller relating to the transactions contemplated
hereby  and all  other  prior  or  contemporaneous  agreements,  understandings,
representations  or  statements,  oral  or  written,  relating  directly  to the
Property are superseded hereby.

     16.7. Severability.  If any provision in this Agreement is found by a court
of competent  jurisdiction to be in violation of any applicable law, and if such
court should  declare such  provision  of this  Agreement to be unlawful,  void,
illegal or unenforceable  in any respect,  the remainder of this Agreement shall
be construed as if such unlawful,  void, illegal or unenforceable provision were
not contained therein, and the rights,  obligations and interests of the parties
hereto under the remainder of this  Agreement  shall  continue in full force and
effect undisturbed and unmodified in any way.

     16.8. Modification. This Agreement and the terms hereof may not be changed,
waived, modified,  supplemented,  canceled, discharged or terminated orally, but
only by an instrument or instruments in writing executed and delivered by Seller
and Purchaser.

     16.9.  Waiver of Trial by Jury.  EACH PARTY HEREBY WAIVES,  IRREVOCABLY AND
UNCONDITIONALLY,  TRIAL BY JURY IN ANY ACTION  BROUGHT ON, UNDER OR BY VIRTUE OF
OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS OR CERTIFICATES
EXECUTED IN CONNECTION HEREWITH, THE PROPERTY, OR ANY CLAIMS,  DEFENSES,  RIGHTS
OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO ANY OF THE FOREGOING.

     16.10.  Venue.  Purchaser  and Seller  each hereby  irrevocably  waives any
objection  that it may now or hereafter have to the laying of venue of any suit,
action  or  proceeding  arising  out  of  this  Agreement  or  the  transactions
contemplated  hereby  brought in any federal or state court sitting in the State
of New  Jersey  and hereby  further  irrevocably  waives and claim that any such
suit,  action or  proceeding  brought in any such  court has been  brought in an
inconvenient forum. Seller and Purchaser further hereby expressly submits to the
jurisdiction of all federal and state courts sitting in the State of New Jersey.

<PAGE>

     16.11. No Recording. Neither this Agreement nor any memorandum hereof shall
be recorded.  Each party hereby agrees to indemnify and hold harmless the others
for all liabilities,  losses,  damages, liens, suits, claims, costs and expenses
(including  reasonable  attorneys'  fees)  incurred by the others by reason of a
breach of the foregoing covenant.

     16.12.  Captions.  The captions and table of contents in this Agreement are
inserted for  convenience  of reference  only and in no way define,  describe or
limit the scope or intent of this Agreement or any of the provisions hereof.

     16.13.  Counterparts;  Effectiveness  of Agreement.  This  Agreement may be
executed  in any  number of  counterparts,  each of which  shall  constitute  an
original  but  all of  which  together  will  constitute  one  instrument.  This
Agreement shall not be effective unless and until the same has been executed and
delivered by all parties hereto whether in one or more counterparts.

     16.14.  Merger.  The delivery of the Deed to  Purchaser  and the closing of
title to the  Property  shall be  deemed  to  constitute  full  performance  and
discharge by Seller of every  agreement and  obligation on the part of Seller to
be performed hereunder, and no agreement,  promise,  representation or warranty,
express or implied, on the part of Seller shall survive Closing unless expressly
set forth to the contrary herein.

<PAGE>

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first above written.

                                    Seller:
                                    ------

                                    WELLSFORD CAPITAL PROPERTIES, L.L.C.

                                    By: Wellsford Capital, its sole member

                                    By: /s/ William H. Darrow II
                                       -----------------------------------
                                        Name: William H. Darrow II
                                        Title: Vice President

                                    Purchaser:
                                    ---------

                                    CRC COMMUNITIES, INC.

                                    By: /s/ Carl Checchio
                                       -----------------------------------
                                        Name: Carl Checchio
                                        Title: President

Agreed as to Section 3.2 only:

ROBINSON SILVERMAN PEARCE
  ARONSOHN & BERMAN LLP

By: /s/ Johnathan S. Margolis
   -----------------------------------
       Name: Johnathan S. Margolis
       Partner

<PAGE>

                                    Exhibit A
                                   (the Land)

All that certain plot,  piece or parcel of land, with buildings and improvements
thereon erected, situate, lying and being in the Township of Piscataway,  County
of Middlesex and State of New Jersey being described as follows:

BEGINNING at a point of intersection of the easterly  right-of-way  line of Hoes
Lane (variable  width),  with the northerly  right-of-way  of Lincoln Avenue (50
feet wide), and from said BEGINNING point; thence

(1) North 8 degrees 25 minutes 00 seconds West along the  easterly  right-of-way
line of Hoes Lane, a distance of 2.67 feet to a point; thence

(2) North 8 degrees 5 minutes 26 seconds  West,  still  along said  right-of-way
line, a distance of 272.33 feet to a point; thence

(3) North 81 degrees 37 minutes 00 seconds  East along the common  line  between
Lots 24 and 25 in Block 593, a distance of 454.03 feet to a point; thence

(4) South 8 degrees 26 minutes 23  seconds  East along the common  line  between
Lots 24 and 23 in  Block  593,  a  distance  of  275.00  feet to a point  in the
northerly right-of-way line of Lincoln Avenue; thence

(5) South 81 degrees 37 minutes 00 seconds West along the northerly right-of-way
line of Lincoln Avenue,  a distance of 455.69 feet to a point,  said point being
the point and place of BEGINNING.

<PAGE>

                                   Exhibit A-1
                         (Escrowee Account Information)

Boston Safe Deposit and Trust Company
One Boston Place
Boston, Massachusetts 02108
ABA # 011 001 234
Credit to account of:  Robinson Silverman Pearce Aronsohn & Berman LLP Attorney
Trust Account
Account Number 229121

<PAGE>

                                    Exhibit B
                                (Existing Leases)

<PAGE>

                                    Exhibit C
                          (Existing Service Contracts)

<PAGE>

                                    Exhibit D
                      (Form of Tenant Estoppel Certificate)

                           TENANT ESTOPPEL CERTIFICATE

Landlord:         Wellsford Capital Properties, L.L.C.

Tenant:
       -----------------------------------

Original Lease Date:
                    -----------------------------------.

The  undersigned  Tenant under the  above-referenced  Lease (the "LEASE") hereby
ratifies and certifies to CRC Communities,  Inc. or its affiliate ("PURCHASER"),
as the  prospective  purchaser of the real property  commonly  known as 501 Hoes
Lane,  Piscataway,  New Jersey (the  "PROPERTY"),  of which the premises demised
under  the  Lease  is a part  (the  "PREMISES"),  and to  any  lender  providing
financing to Purchaser in connection  with its acquisition of such real property
("LENDER"), as follows:

     1.   The CURRENT term of the Lease commenced on ____________ and expires on
          __________. Tenant has accepted and is in possession of the Premises.

     2.   The Lease  presently  calls for monthly  installments of fixed or base
          rent of $___________.

     4.   _______ Rent has been paid to and including ____________, 2000, and no
          advance  rental or other payment has been made in connection  with the
          Lease,  except rental for the current month. Tenant has no defenses or
          set-offs to the payment of rent.

     5.   A  security  deposit  in the  amount of $  _________  is being held by
          Landlord.

     6.   _______  There  is no  existing  event of  default  on the part of the
          Landlord  or the  Tenant  in any of the terms  and  conditions  of the
          Lease,*  and Tenant has no offsets or  defenses to the payment of rent
          thereunder.

     7.   The Lease is valid and in full  force and effect  and  represents  the
          entire agreement between the parties, and the Lease has (check one):

          (    ) not been amended, modified, supplemented,  extended, renewed or
                 assigned.

          (    ) been  amended,  modified,  supplemented,  extended,  renewed or
                 assigned as follows by the following described agreements:

                 --------------------------------------------------------.

----------
  *  Will accept modified to Tenant's knowledge as to Landlord default.

<PAGE>

          8.   As of the date hereof,  Landlord has fully  performed  all of its
               obligations under the Lease and satisfied all commitments made to
               induce  Tenant to enter into the Lease and Tenant is not entitled
               to any rental  inducements,  "free rent",  rent  allowance,  rent
               credits or other concession or economic inducements in connection
               with the Lease  throughout  the  remainder  of the term except as
               follows:

                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  -------------------.

          9.   All construction,  build-out, improvements, or alterations to the
               Premises  required  under the Lease have been fully  completed in
               accordance  with the plans and  specifications  described  in the
               Lease  and all  contributions  required  to be  made by  Landlord
               throughout  the term of the Lease on  account  thereof  have been
               made except as follows:

                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  --------------------------------------------------------------
                  ---------------.

          10.  There are no actions,  voluntary or involuntary,  pending against
               the Tenant under the bankruptcy  laws of the United States or any
               state thereof.

          11.  Tenant  has no  renewal,  extension,  cancellation  or  expansion
               rights under the Lease,  except to the extent expressly set forth
               in the Lease.

          12.  Tenant has no right of first offer or refusal with respect to, or
               other option to purchase, all or any portion of the Premises.

          13.  Tenant has not assigned,  transferred or pledged the Lease or any
               interest therein or sublet any portion thereof except as follows:

                  --------------------------------------------------------------
                  -- .

<PAGE>

     This   certificate  has  been  given  to  Purchaser  and  Lender  with  the
understanding  that  Purchaser  is  acquiring  the  Property in reliance on this
Tenant Estoppel Certificate and Lender will rely hereon in connection with loans
which will be secured by the Property.  The undersigned hereby certifies that he
or she is duly authorized to sign and deliver this Tenant Estoppel Certificate.

                           Tenant:

Date:                                  By:
      ---------, ------.                  --------------------------
                                           Name:
                                           Title:

<PAGE>

                                    Exhibit E
                             (Form of Bill of Sale)

                                  BILL OF SALE
                                  ------------

                         KNOW ALL MEN BY THESE PRESENTS,

     That WELLSFORD CAPITAL PROPERTIES,  L.L.C., having an office at 535 Madison
Avenue,  26th  Floor,  New  York,  New  York  10022  ("GRANTOR"),   for  and  in
consideration  of the sum of Ten Dollars  ($10.00),  lawful  money of the United
States,  to it in hand paid,  at or before  delivery  of these  presents  by CRC
COMMUNITIES,  INC.,  having an  office  _____________________  ("GRANTEE"),  the
receipt of which is hereby  acknowledged,  by these presents does hereby convey,
without  recourse,  representation  or warranty of any kind,  unto Grantee,  its
successors and assigns,  all right,  title and interest of Grantor in and to all
personal  property  affixed to, located upon or used in connection with the real
property described in Schedule 1 annexed hereto and made a part hereof.

     TO HAVE AND TO HOLD the same  unto  Grantee,  its  successors  and  assigns
forever.

     This Bill of Sale shall be governed by and construed in accordance with the
laws of the State of New Jersey.

     IN WITNESS WHEREOF,  Grantor has caused this instrument to be duly executed
as of this ___ day of ------, ----.

            WELLSFORD CAPITAL PROPERTIES, L.L.C.

                By: Wellsford Capital, a Maryland real estate investment trust

                By:
                    ------------------------------------------
                    Name:
                    Title:

<PAGE>

                                   Schedule 1
                                   ----------

All that certain plot,  piece or parcel of land, with buildings and improvements
thereon erected, situate, lying and being in the Township of Piscataway,  County
of Middlesex and State of New Jersey being described as follows:

BEGINNING at a point of intersection of the easterly  right-of-way  line of Hoes
Lane (variable  width),  with the northerly  right-of-way  of Lincoln Avenue (50
feet wide), and from said BEGINNING point; thence

(1) North 8 degrees 25 minutes 00 seconds West along the  easterly  right-of-way
line of Hoes Lane, a distance of 2.67 feet to a point; thence

(2) North 8 degrees 5 minutes 26 seconds  West,  still  along said  right-of-way
line, a distance of 272.33 feet to a point; thence

(3) North 81 degrees 37 minutes 00 seconds  East along the common  line  between
Lots 24 and 25 in Block 593, a distance of 454.03 feet to a point; thence

(4) South 8 degrees 26 minutes 23  seconds  East along the common  line  between
Lots 24 and 23 in  Block  593,  a  distance  of  275.00  feet to a point  in the
northerly right-of-way line of Lincoln Avenue; thence

(5) South 81 degrees 37 minutes 00 seconds West along the northerly right-of-way
line of Lincoln Avenue,  a distance of 455.69 feet to a point,  said point being
the point and place of BEGINNING.

<PAGE>

                                    Exhibit F
                  (Form of Assignment and Assumption of Leases)

                       ASSIGNMENT AND ASSUMPTION OF LEASES
                       -----------------------------------

     THIS  ASSIGNMENT AND ASSUMPTION OF LEASES (this  "ASSIGNMENT"),  made as of
the ___ day of _______,  ____,  by and  between  WELLSFORD  CAPITAL  PROPERTIES,
L.L.C.,  having an office at 535 Madison Avenue,  26th Floor, New York, New York
10022   ("ASSIGNOR"),and   CRC   COMMUNITIES,   INC.,   having   an   office  at
_____________________  ("ASSIGNEE"),  for and in consideration of the sum of Ten
Dollars  ($10.00),lawful  money of the United States,  to it in hand paid, at or
before delivery of these presents by Assignee with reference to the following:

                                 R E C I T A L S
                                 ---------------

     Pursuant to a  Sale-Purchase  Agreement  dated as of November __, 2000 (the
"PURCHASE  AGREEMENT"),  Assignor is conveying to Assignee certain real property
more  particularly  described  therein  and  commonly  known as 501  Hoes  Lane,
Piscataway, New Jersey.

     NOW THEREFORE,  in  consideration of the sum of Ten Dollars  ($10.00),  the
promises,  covenants and undertakings contained in the Agreement,  and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

                            ASSIGNMENT AND ASSUMPTION
                            -------------------------

     Assignor hereby  transfers,  and otherwise  conveys unto Assignee,  without
recourse, representation or warranty of any kind (except as may be expressly set
forth in the Purchase Agreement,  and subject to the limitations on survival set
forth therein),  all of the rights, title and interest of Assignor,  as landlord
under the leases  (the  "Leases")  described  in  Schedule 1 annexed  hereto and
incorporated herein by this reference,  including without limitation, all rents,
issues and profits arising  therefrom and any security held under the Leases for
the performance of the tenants' obligations thereunder,  TO HAVE AND TO HOLD all
and singular subject as aforesaid, unto Assignee.

     From and after the date  hereof,  Assignee  assumes and agrees to discharge
and perform all duties, obligations and liabilities arising on or after the date
hereof to be  performed  by Assignor,  as  landlord,  under the Leases,  for the
duration of the respective terms thereof. Without limiting the generality of the
foregoing,  the obligations and liabilities  assumed by Assignee hereunder shall
include,  but shall not be limited  to, the  obligation  to  properly  apply any
advance rental,  security  deposit or other deposit under any of the Leases,  to
the extent  such  advance  rental,  security  deposit or other  deposit has been
delivered, assigned or credited by Assignor to Assignee concurrently herewith.

     This  Assignment  shall be binding upon,  enforceable by and shall inure to
the benefit of the successors and assigns of the parties.

<PAGE>

     This Assignment may be signed in multiple  counterparts  which,  when taken
together  and signed by all parties  and  delivered  to any other party  hereto,
shall constitute a binding Assignment between the parties.

     This  Assignment  shall be governed by and construed in accordance with the
laws of the State of New Jersey.

     IN  WITNESS  WHEREOF,   Assignor  and  Assignee  have  duly  executed  this
instrument as of the date first set forth above.

                  ASSIGNOR:

                  WELLSFORD CAPITAL PROPERTIES, L.L.C.

                  By: Wellsford Capital, a Maryland real estate investment trust

                  By:
                     -----------------------------
                     Name:
                     Title:

                  ASSIGNEE:

                  CRC COMMUNITIES, INC.

                  By:
                      -----------------------------
                      Name:
                      Title:

<PAGE>

                                   Schedule 1
                                   ----------

                                [List of Leases]

<PAGE>

                                    Exhibit G
 (Form of Assignment and Assumption of Service Contracts, Licenses and Permits)

                 ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS,
                 -----------------------------------------------
                              LICENSES AND PERMITS
                              --------------------

     THIS ASSIGNMENT AND ASSUMPTION OF SERVICE  CONTRACTS,  LICENSES AND PERMITS
(this  "ASSIGNMENT"),  made as of the ___ day of _______,  ____,  by and between
WELLSFORD CAPITAL  PROPERTIES,  L.L.C.,  having an office at 535 Madison Avenue,
26th Floor, New York, New York 10022  ("ASSIGNOR"),and  CRC  COMMUNITIES,  INC.,
having  an  office  at  634  Stangle  Road,   Martinsville,   New  Jersey  08836
("ASSIGNEE"),  for  and in  consideration  of the sum of Ten  Dollars  ($10.00),
lawful money of the United States,  to it in hand paid, at or before delivery of
these presents by Assignee with reference to the following:

                                 R E C I T A L S
                                 ---------------

     Pursuant to a  Sale-Purchase  Agreement dated as of November ___, 2000 (the
"PURCHASE AGREEMENT"),  Assignor is conveying certain real property known as 501
Hoes Lane,  Piscataway,  New Jersey (the  "PROPERTY")  to Assignee.  Capitalized
terms used herein and not  otherwise  defined  shall have the meanings  ascribed
thereto in the Purchase Agreement.

     NOW THEREFORE,  in  consideration of the sum of Ten Dollars  ($10.00),  the
foregoing promises, covenants and undertakings contained in this Assignment, and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

                            ASSIGNMENT AND ASSUMPTION
                            -------------------------

     1. (a) Assignor hereby assigns to Assignee, without recourse representation
or  warranty  of any kind,  all of its right,  title and  interest in and to the
assignable Service Contracts and the assignable Licenses and Permits.

          (b) Assignee  hereby  accepts the foregoing  assignment  and agrees to
     assume,  keep,  perform  and  fulfill  all of  the  terms,  conditions  and
     obligations  which are  required to be kept,  performed  and  fulfilled  by
     Assignor  in  connection  with or  arising  out of the  assignable  Service
     Contracts and the  assignable  Licenses and Permits from and after the date
     hereof.

          (c) Assignee  further hereby assumes the  obligations of Assignor with
     respect to post-termination  leasing commissions payable in accordance with
     Exhibit B, Section 9 of the Leasing Agency Agreement.

     2. This Assignment shall be binding upon, enforceable by and shall inure to
the benefit of the parties hereto and their respective successors and assigns.

<PAGE>

     3. This Assignment may be signed in multiple counterparts which, when taken
together  and signed by all parties  and  delivered  to any other party  hereto,
shall constitute a binding Assignment between the parties.

     4. This  Assignment  shall be governed by and construed in accordance  with
the laws of the State of New Jersey.

     IN  WITNESS  WHEREOF,   Assignor  and  Assignee  have  duly  executed  this
instrument as of the date first set forth above.

                  ASSIGNOR:

                  WELLSFORD CAPITAL PROPERTIES, L.L.C.

                  By: Wellsford Capital, a Maryland real estate investment trust

                  By:
                      -------------------------------
                      Name:
                      Title:

                  ASSIGNEE:

                  CRC COMMUNITIES, INC.

                  By:
                      -------------------------------
                      Name:
                      Title:

<PAGE>

                                    Exhibit H
                                   (Rent Roll)

<PAGE>

                                    Exhibit I

                          (Lease Disclosure Statement)

Notice of default sent by property  manager,  dated August 31, 2000, to Inventus
Group.

<PAGE>

                                    Exhibit J

                              (Insurance Coverages)

<PAGE>

                                    Exhibit K

                             (Permitted Exceptions)

1.   The  Leases  and the  rights  of  tenants  thereunder,  including,  without
     limitation, memoranda of the Leases and non-disturbance agreements recorded
     with respect thereto.

2.   Zoning and building  regulations,  ordinances,  and requirements adopted by
     any governmental or municipal  authority having jurisdiction  thereof,  and
     amendments and additions  thereto now in force and effect,  which relate to
     the Premises.

3.   Any  agreements,   financing  statements,   chattel  mortgages,   liens  or
     encumbrances entered into by, or arising from, the acts of any tenant.

4.   Conditional bills of sale or Uniform  Commercial Code financing  statements
     which were filed on a day more than five years prior to the Closing.

5.   Subject to adjustment  as herein  provided,  real estate taxes,  tax liens,
     water and sewer charges,  assessments  and vault charges,  and the liens of
     any of the foregoing.

6.   State of facts  disclosed  on that  certain  survey of the Premises as last
     redated April 4, 1996 by  Ensureplan,  Inc.,  and any  additional  state of
     facts an accurate survey update or visual inspection would disclose.

7.   Easements as set forth in Deed Book 1235 Page 274,  Deed Book 480 Page 565,
     Deed  Book 2156  Page 224 and Deed  Book  3550  Page 49,  Middlesex  County
     Clerk's Office.

<PAGE>

                                 FIRST AMENDMENT
                           TO SALE-PURCHASE AGREEMENT

     THIS FIRST AMENDMENT TO SALE-PURCHASE AGREEMENT (this "AGREEMENT") dated as
of January 4, 2001 between  WELLSFORD  CAPITAL  PROPERTIES,  L.L.C.,  a Delaware
limited liability company having an address c/o Wellsford Real Properties, Inc.,
535 Madison Avenue,  26th Floor,  New York, New York 10022  ("SELLER"),  and CRC
COMMUNITIES,  INC.,  a New Jersey  corporation  having an address at 634 Stangle
Road, Martinsville, New Jersey 08836 ("Purchaser").

                              W I T N E S S E T H:
                              -------------------

     WHEREAS,  Seller and Purchaser entered into a Sale-Purchase Agreement dated
as of December 4, 2000 (the "PURCHASE AGREEMENT") with respect to premises known
as 501  Hoes  Lane,  Piscataway,  New  Jersey  and more  particularly  described
therein; and

     WHEREAS,  Seller and Purchaser wish to modify the Purchase Agreement in the
manner hereinafter set forth.

     NOW,  THEREFORE,  in  consideration  of the  foregoing  and other  good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, Seller and Purchaser hereby agree as follows:

     Q. Defined Terms.  Capitalized  terms used herein and not otherwise defined
shall have the meanings ascribed thereto in the Purchase Agreement.

     R. Purchase  Price.  The Purchase  Agreement is hereby modified by reducing
the Purchase Price thereunder to $2,400,000.  The Cash Balance due at Closing is
accordingly reduced to $2,350,000, net of adjustments.

     S. Closing Date.  For avoidance of doubt,  the parties  hereby  acknowledge
that the Closing Date under the Purchase Agreement is January 18, 2001.

     T. Waiver of Due Diligence Contingency.  Purchaser acknowledges that it has
waived the due  diligence  contingency  conferred  upon it by Section 4.1 of the
Purchase  Agreement and further  acknowledges  that the Purchase  Agreement,  as
modified by this  Agreement,  is in full force and effect,  notwithstanding  any
prior conditional  exercise by Purchaser of its due diligence  contingency prior
to the date hereof.

     U. General.

          (1) This  Agreement  shall  bind,  and inure to the  benefit  of,  the
     parties hereto and their respective successors and assigns.

<PAGE>

          (2)  This  Agreement  shall  not be  modified  orally,  but only by an
     agreement in writing executed by Seller and Purchaser.

          (3) This  Agreement  shall be governed by and  construed in accordance
     with the laws of the  State of New  Jersey,  without  giving  effect to the
     conflict of law principles thereof.

          (4) This  Agreement  may be  executed in  counterparts,  each of which
     shall constitute an original and all of which,  when taken together,  shall
     constitute but one and the same agreement.

          (5) This Agreement may be executed and delivered by facsimile.

          IN  WITNESS  WHEREOF,  Seller and  Purchaser  have  entered  into this
     Agreement as of the date and year first above written.

               SELLER:

               WELLSFORD CAPITAL PROPERTIES, L.L.C.

                                By: Wellsford Capital, its Manager

                                       By:
                                            ----------------------
                                            William H. Darrow
                                            Vice President

               PURCHASER:

               CRC COMMUNITIES, INC.

               By:
                   ----------------------

               Name:
               Title:

<PAGE>

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