Document:

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                                                                    EXHIBIT 10.5

                                  G REIT, INC.

                     OFFICER AND EMPLOYEE STOCK OPTION PLAN

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ARTICLE I DEFINITIONS                                                       1

1.01. Affiliate                                                             1
1.02. Agreement                                                             1
1.03. Board                                                                 1
1.04. Code                                                                  1
1.05. Committee                                                             1
1.06. Common Stock                                                          1
1.07. Company                                                               1
1.08. Fair Market Value                                                     1
1.09. Independent Director                                                  2
1.10. Offering                                                              2
1.11. Option                                                                2
1.12. Option Price                                                          2
1.13. Participant                                                           3
1.14. Plan                                                                  3

ARTICLE II PURPOSES                                                         3

ARTICLE III ADMINISTRATION                                                  3

ARTICLE IV ELIGIBILITY                                                      4

ARTICLE V COMMON STOCK SUBJECT TO PLAN                                      4

5.01. Common Stock Issued                                                   4
5.02. Aggregate Limit                                                       4
5.03. Reallocation of Shares                                                5

ARTICLE VI OPTIONS                                                          5

6.01. Award                                                                 5
6.02. Option Price                                                          5
6.03. Maximum Option Period                                                 5
6.04. Nontransferability                                                    5
6.05. Status as Employee                                                    6
6.06. Exercise                                                              6
6.07. Payment                                                               7
6.08. Shareholder Rights                                                    7

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ARTICLE VII ADJUSTMENT UPON CHANGE IN COMMON STOCK                          8

ARTICLE VIII COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES AND
  ASSURANCE OF REIT STATUS                                                  9

ARTICLE IX GENERAL PROVISIONS                                               10

9.01. Effect on Employment and Service                                      10
9.02. Unfunded Plan                                                         10
9.03. Rules of Construction                                                 10

ARTICLE X AMENDMENT                                                         10

ARTICLE XI DURATION OF PLAN                                                 11

ARTICLE XII EFFECTIVE DATE OF PLAN                                          11

                                       ii

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                                    ARTICLE I
                                   DEFINITIONS

1.01.    Affiliate

         Affiliate means any "subsidiary" or "parent" corporation (within the
meaning of Section 424 of the Code) of the Company, including a corporation that
becomes an Affiliate after the adoption of this Plan.

1.02.    Agreement

         Agreement means a written agreement (including any amendment or
supplement thereto) between the Company and a Participant specifying the terms
and conditions of an Option granted to such Participant.

1.03.    Board

         Board means the Board of Directors of the Company.

1.04.    Code

         Code means the Internal Revenue Code of 1986, and any amendments
thereto.

1.05.    Committee

         Committee means the Executive Compensation Committee of the Board.

1.06.    Common Stock

         Common Stock means the common stock of the Company.

1.07.    Company

         Company means G REIT, Inc.

1.08.    Fair Market Value

         Fair Market Value means, on any given date, the fair market value of a
share of Common Stock determined in accordance with (a) or (b) below:

         (a) If the Common Stock is not traded on a national securities exchange
or quotation system, Fair Market Value means a price determined by the Board in
good faith, taking into account, among other factors the Board deems relevant,
the

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price per share at which the Common Stock is then being sold to the public, the
price per share of the common stock of comparable companies, the Company's
earnings, and the value of the Company's assets; provided, however, that any
                                                 --------  -------
such determination by the Board must be approved by a majority of the
Independent Directors.

         (b) If the Common Stock is traded on a national securities exchange or
quotation system, Fair Market Value means that average of the last sales price
or the average of the last bid and ask prices, in each case for the five trading
days immediately preceding the date of determination.

1.09.    Independent Director

         Independent Director means a member of the Board who is not, and has
not been in the two years immediately prior to any determination of such Board
member's Independent Director status, directly or indirectly associated with the
Company or Triple Net Properties, LLC within the meaning of Section I(B)(14) of
the NASAA Statement of Policy Regarding Real Estate Investment Trusts.

1.10.    Offering

         Offering means the initial public offering of Common Stock by the
Company.

1.11.    Option

         Option means a stock option that entitles the holder to purchase from
the Company a stated number of shares of Common Stock at the price set forth in
an Agreement.

1.12.    Option Price

         Option Price means the purchase price per share of Common Stock under
an Option determined in accordance with (a), (b) or (c) below, but subject to
Section 6.02:

         (a) If the date of grant of an Option occurs on or before the date of
the commencement of the Offering, the Option Price for such Option shall be the
price per share of Common Stock in the Offering less the dealer manager's
selling commission and marketing support and due diligence reimbursement fee
allocable to a share of Common Stock.

         (b) If the date of grant of an Option occurs during the Offering but
after the date of the commencement of the Offering, the Option Price for such
Option

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shall be the greater of (i) the price per share of Common Stock in the Offering
less the dealer manager's selling commission and marketing support and due
diligence reimbursement fee allocable to a share of Common Stock and (ii) the
Fair Market Value on the date of grant of such Option.

         (c) If the date of grant of an Option occurs after the completion of
the Offering, the Option Price for such Option shall be the Fair Market Value on
the date of grant of such Option.

1.13.    Participant

         Participant means an officer or employee of the Company who satisfies
the requirements of Article IV and is selected by the Board, acting on
recommendation by the Committee, to receive an Option. A member of the Board who
is an officer or employee of the Company may be selected to participate in this
Plan.

1.14.    Plan

         Plan means the G REIT, Inc. Officer and Employee Stock Option Plan.

                                   ARTICLE II
                                    PURPOSES

         The Plan is intended to assist the Company in recruiting and retaining
individuals or entities with ability and initiative by enabling such persons to
participate in the future success of the Company and to associate their
interests with those of the Company and its shareholders. The Plan is intended
to permit the grant of nonqualified stock options - i.e., Options not qualifying
under Section 422 of the Code. The proceeds received by the Company from the
sale of shares of Common Stock pursuant to this Plan shall be used for general
corporate purposes.

                                   ARTICLE III
                                 ADMINISTRATION

         The Plan shall be administered by the Board. The Board shall have
authority to grant Options upon such terms (not inconsistent with the provisions
of this Plan), as the Board may consider appropriate. Such terms may include
conditions (in addition to those contained in this Plan) on the exercisability
of all or any part of an Option. Notwithstanding any such conditions, the Board
may, in its discretion, (i) accelerate the time at which any Option may be
exercised, or (ii) suspend the forfeiture of any award made under this Plan. In

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addition, the Board shall have complete authority to interpret all provisions of
this Plan; to prescribe the form of Agreements; to adopt, amend, and rescind
rules and regulations pertaining to the administration of the Plan; and to make
all other determinations necessary or advisable for the administration of this
Plan. The express grant in the Plan of any specific power to the Board shall not
be construed as limiting any power or authority of the Board. Notwithstanding
the foregoing, any decision made or action taken by the Board under this Article
III must be approved by a majority of the Independent Directors. Subject to such
approval, any decision made or action taken by the Board or in connection with
the administration of this Plan shall be final and conclusive. Neither the Board
nor the Committee nor any member of the Board or the Committee shall be liable
for any act done in good faith with respect to this Plan or any Agreement or
Option. All expenses of administering this Plan shall be borne by the Company.

                                   ARTICLE IV
                                   ELIGIBILITY

         Any employee of the Company (whether or not such person is also a Board
member) is eligible to participate in this Plan if the Board, acting on
recommendation by the Committee, determines that such person has contributed
significantly or can be expected to contribute significantly to the profits or
growth of the Company.

                                    ARTICLE V
                          COMMON STOCK SUBJECT TO PLAN

5.01.    Common Stock Issued

         Upon the exercise of any Option, the Company may deliver to the
Participant (or the Participant's broker if the Participant so directs), shares
of Common Stock from its authorized but unissued Common Stock.

5.02.    Aggregate Limit

         The maximum aggregate number of shares of Common Stock that may be
issued under this Plan is 400,000 shares. The maximum aggregate number of shares
of Common Stock that may be issued under this Plan shall be subject to
adjustment as provided in Article VII.

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5.03.    Reallocation of Shares

         If an Option is terminated, in whole or in part, for any reason other
than its exercise, the number of shares allocated to the Option or portion
thereof may be reallocated to other Options to be granted under this Plan.

                                   ARTICLE VI
                                     OPTIONS

6.01.    Award

         In accordance with the provisions of Article IV, the Board, acting on
recommendation by the Committee, will designate each individual to whom an
Option is to be granted and will specify the number of shares of Common Stock
covered by such awards; provided, however, that no Participant may be granted
                        --------  -------

Options in any calendar year covering more than 135,000 shares. Further, no
Participant may be granted Options covering a number of shares equal to or in
excess of ten percent (10%) of the outstanding shares of Common Stock of the
Company as of the grant date of such Options. The Board will make grants
pursuant to this Section 6.01 on the date of each annual meeting of the
Company's shareholders and at such other times as it may determine.

6.02.    Option Price

         The Option Price per share for shares of Common Stock purchased on the
exercise of an Option shall be determined by the Board on the date of grant in
accordance with Section 1.12; provided, however, that in no event may the Option
                              --------  -------
Price be less than the Fair Market Value on the date the Option is granted.

6.03.    Maximum Option Period

         The maximum period in which an Option may be exercised shall be
determined by the Board on the date of grant, except that no Option shall be
exercisable after the expiration of ten years from the date such Option was
granted.

6.04.    Nontransferability

         Each Option granted under this Plan shall be nontransferable except by
will or by the laws of descent and distribution. During the lifetime of the
Participant to whom the Option is granted, the Option may be exercised only by
the Participant. No right or interest of a Participant in any Option shall be
liable for, or subject to, any lien, obligation, or liability of such
Participant.

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6.05.    Status as Employee

         In the event that the terms of any Option provide that it may be
exercised only during employment or within a specified period of time after
termination of employment, the Board may decide to what extent leaves of absence
for governmental or military service, illness, temporary disability, or other
reasons shall not be deemed interruptions of continuous employment.

6.06.    Exercise

         (a)   Subject to the provisions of this Plan, including Section 6.06(b)
through (f), and the applicable Agreement, an Option may be exercised in whole
at any time or in part from time to time at such times and in compliance with
such requirements as the Board shall determine (subject to approval by a
majority of the Independent Directors). An Option granted under this Plan may be
exercised with respect to any number of whole shares less than the full number
for which the Option could be exercised. A partial exercise of an Option shall
not affect the right to exercise the Option from time to time in accordance with
this Plan and the applicable Agreement with respect to the remaining shares
subject to the Option.

         (b)   Options granted on or before the commencement of the Offering
will become exercisable for one-third of the shares subject to the Option on the
date of grant, and for an additional one-third of such shares on each of the
first and second anniversaries of the date of grant.

         (c)   Options granted after the commencement of the Offering will
become exercisable in whole or in part on the second anniversary of the date of
grant.

         (d)   If a Participant remains in the continuous employ of the Company
from the date of grant of an Option though the Participant's termination of
employment due to death or "permanent and total disability," within the meaning
of Section 22(e)(3) of the Code, the Participant or the Participant's successor
in interest (in the event of death) may exercise Participant's Option or Options
for all or part of the shares for which each such Option was exercisable on the
date of Participant's termination of employment, for one year following such
termination of employment or, if sooner, during the period prior to the stated
expiration date of the Option or Options.

         (e)   If a Participant ceases to be employed by the Company for any
reason other than death or "permanent and total disability," within the meaning
of Section 22(e)(3) of the Code, Participant may exercise his or her Option or
Options for the number of shares for which each such Option was exercisable on
the date of the

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Participant's termination of employment, for three months following such
termination of employment or, if sooner, during the period prior to the stated
expiration date of the Option or Options.

         (f)   Notwithstanding any provision of this Plan or any Agreement, no
Option will become exercisable to the extent that the total number of all
exercisable options and warrants to purchase Common Stock that are owned by the
Company's officers, directors and employees and affiliates of such individuals
would exceed 10% of the total outstanding shares of Common Stock (as of the date
such Option or portion thereof is scheduled to become exercisable) if such
Option or portion thereof were to become exercisable as scheduled (the "10%
Limit"). If an Option or portion thereof is scheduled to become exercisable on a
certain date and the 10% Limit would be exceeded as a result of such
exercisability, then such Option or portion thereof will become exercisable on
the first date that such exercisability would not cause the 10% Limit to be
exceeded. If Options or portions thereof issued pursuant to more than one
Agreement are scheduled to become exercisable on a certain date, and the
exercisability of all of such Options would cause the 10% Limit to be exceeded,
then such Options will become exercisable, subject to the 10% Limit, on a pro
rata basis according to the total number of shares of Common Stock scheduled to
become exercisable. The preceding sentence shall be applied by taking into
account options granted pursuant to all of the Company's plans, including this
Plan.

6.07.    Payment

         Subject to rules established by the Board and approved by a majority of
the Independent Directors, payment of all or part of the Option price may be
made in cash, a cash equivalent acceptable to the Board, with shares of Common
Stock, or a combination thereof. If shares of Common Stock are used to pay all
or part of the Option Price, the sum of the cash and cash equivalent and the
Fair Market Value (determined as of the day preceding the date of exercise) of
the shares surrendered must not be less than the Option Price of the shares for
which the Option is being exercised.

6.08.    Shareholder Rights

         No Participant shall have any rights as a shareholder with respect to
shares subject to his Option until the date of exercise of such Option.

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                                   ARTICLE VII
                     ADJUSTMENT UPON CHANGE IN COMMON STOCK

     The maximum number of shares as to which Options may be granted; the terms
of outstanding Options, including the Option Price and the kind of shares
subject to the Options; and the per individual limitations on the number of
shares of Common Stock for which Options may be granted shall be adjusted as the
Board shall determine to be equitably required (i) in the event that the Company
(a) effects one or more stock dividends, stock split-ups, subdivisions or
consolidations of shares or (b) engages in a transaction to which Section 424 of
the Code applies and in which the Company is the surviving entity, or (ii) there
occurs any other event which, in the judgment of the Board necessitates such
action. Any determination made by the Board under this Article VII is subject to
approval by a majority of the Independent Directors and, if such approval is
obtained, shall be final and conclusive.

     This Plan shall terminate and any outstanding Options will be forfeited (i)
in the event of a dissolution or liquidation of the Company; (ii) in the event
the Company engages in a transaction to which Section 424 of the Code applies
and in which the Company is not the surviving entity; or (iii) upon the sale of
all or substantially all of the assets of the Company. Notwithstanding the
foregoing, in connection with or in contemplation of any of the events described
in the preceding sentence, the Board may provide in writing for any of the
following alternatives to termination of the Plan and forfeiture of outstanding
Options, separately or in combination: (i) the assumption by the successor
corporation of outstanding Options or the substitution by such corporation for
such Options of options covering the stock of the successor corporation, or a
parent or subsidiary thereof, with appropriate adjustments as to the number and
kind of shares and option prices; (ii) the continuation of the Plan by such
successor corporation, in which event the Plan will continue in the manner and
under the terms so provided by the Board; or (iii) a payment in cash or shares
of Common Stock or other securities in lieu of and in complete satisfaction of
outstanding Options. Any action taken by the Board under this paragraph is
subject to approval by a majority of the Independent Directors and, if such
approval is obtained, shall be final and conclusive.

     The issuance by the Company of stock of any class, or securities
convertible into stock of any class, for cash or property, or for labor or
services, either upon direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of stock or obligations of the Company
convertible into such stock or other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the maximum number
of shares as to which Options may be

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granted; the per individual limitations on the number of shares for which
Options may be granted; or the terms of outstanding Options.

     The Board may grant Options in substitution for stock options or similar
awards held by an individual who becomes an employee of the Company in
connection with a transaction described in the first paragraph of this Article
VII. Notwithstanding any provision of the Plan (other than the limitation of
Section 5.02), the terms of such substituted Options shall be as the Board, in
its discretion, determines is appropriate.

                                  ARTICLE VIII
                       COMPLIANCE WITH LAW AND APPROVAL OF
                 REGULATORY BODIES AND ASSURANCE OF REIT STATUS

     No Option shall be exercisable, no shares of Common Stock shall be issued,
no certificates for shares of Common Stock shall be delivered, and no payment
shall be made under this Plan (i) except in compliance with (a) all applicable
federal and state laws and regulations (including, without limitation,
withholding tax requirements), (b) any listing agreement to which the Company is
a party, and (c) the rules of all domestic stock exchanges on which the
Company's shares may be listed and (ii) only if such exercise or issuance of
Common Stock or delivery of certificates will not jeopardize the Company's
status as a real estate investment trust under the Code. The Company shall have
the right to rely on an opinion of its counsel as to such compliance and
assurance of real estate investment trust status. Any stock certificate issued
to evidence shares of Common Stock for which an Option is exercised may bear
such legends and statements as the Board may deem advisable to assure compliance
with federal and state laws and regulations. No Option shall be exercisable, no
shares of Common Stock shall be issued, no certificate for shares of Common
Stock shall be delivered, and no payment shall be made under this Plan until the
Company has obtained such consent or approval as the Board may deem advisable
from regulatory bodies having jurisdiction over such matters.

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                                   ARTICLE IX
                               GENERAL PROVISIONS

9.01.    Effect on Employment and Service

         Neither the adoption of this Plan, its operation, nor any documents
describing or referring to this Plan (or any part thereof), shall confer upon
any individual any right to continue in the employ or service of the Company or
an Affiliate or in any way affect any right and power of the Company or an
Affiliate to terminate the employment or service of any individual at any time
with or without assigning a reason therefor.

9.02.    Unfunded Plan

         The Plan, insofar as it provides for grants, shall be unfunded, and the
Company shall not be required to segregate any assets that may at any time be
represented by grants under this Plan. Any liability of the Company to any
person with respect to any grant under this Plan shall be based solely upon any
contractual obligations that may be created pursuant to this Plan. No such
obligation of the Company shall be deemed to be secured by any pledge of, or
other encumbrance on, any property of the Company.

9.03.    Rules of Construction

         Headings are given to the articles and sections of this Plan solely as
a convenience to facilitate reference. The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or
successor of such provision of law.

                                    ARTICLE X
                                    AMENDMENT

         The Board may amend or terminate this Plan from time to time; provided,
                                                                       --------
however, that any amendment must be approved by a majority of the Independent
-------
Directors; and provided, further, that no amendment may become effective until
               --------  -------
any applicable laws, regulations, rules or requirements of any governmental
authority or stock exchange on which the Common Stock is then listed are
satisfied. Except as provided in Article VII, no amendment shall, without a
Participant's consent, adversely affect any rights of such Participant under any
Option outstanding at the time such amendment is made.

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                                   ARTICLE XI
                                DURATION OF PLAN

     No Option may be granted under this Plan more than five years after the
commencement of the Offering. Options granted before that date shall remain
valid in accordance with their terms.

                                   ARTICLE XII
                             EFFECTIVE DATE OF PLAN

     Options may be granted under this Plan upon its adoption by the Board;
provided that, unless this Plan is approved by a majority of the votes cast by
the Company's shareholders, voting either in person or by proxy, at a duly held
shareholders' meeting at which a quorum is present, no Option shall be
exercisable.

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                                                                    EXHIBIT 10.7

                                ESCROW AGREEMENT
                                ----------------
PriVest Bank
3200 Bristol Street
Costa Mesa, CA 92626
Attention:  ____________________

                  Re:      G REIT, Inc.
                           ------------
Ladies and Gentlemen:

          G REIT, Inc., a Virginia corporation (the "Company"), will issue in a
public offering (the "Offering") its common stock (the "Stock") pursuant to a
Registration Statement on Form S-11 filed by the Company with the Securities and
Exchange Commission. NNN Capital Corp., a California corporation (the "Dealer
Manager"), will act as dealer manager for the offering of the Stock. The Company
is entering into this agreement with you to set forth the terms on which you, as
Escrow Agent, will hold and disburse the proceeds from subscriptions for the
purchase of the Stock in the Offering until such time as: (i) subscriptions from
nonaffiliates of the Company have been received for Stock, resulting in total
minimum capital raised of $1,000,000 (the "Required Capital"); (ii) in the case
of subscriptions received from residents of Pennsylvania ("Pennsylvania
Investors"), the Company has received subscriptions for Stock resulting in total
minimum capital raised of $20,000,000, not including subscriptions from
Pennsylvania Investors (the "Pennsylvania Required Capital"); and (iii) in the
case of subscriptions received from residents of Oregon ("Oregon Investors"),
the Company has received subscriptions for Stock resulting in total minimum
capital raised of $20,000,000, not including subscriptions from Oregon Investors
(the "Oregon Required Capital").

          Based upon your representation and warranty that you are, and at all
times during the term of this agreement will be, deemed a "bank" as that term is
defined in Section 3(a)(6) of the Securities Exchange Act of 1934, as amended,
the Company hereby appoints you as Escrow Agent for purposes of holding the
proceeds from the subscriptions for the Stock, on the terms and conditions
hereinafter set forth:

   1. Persons subscribing to purchase the Stock will be instructed by the Dealer
Manager or any soliciting dealers to remit the purchase price in the form of
checks, drafts, or money orders (hereinafter called "instruments of payment")
payable to the order of, or funds wired in favor of, "PriVest Bank, as Escrow
Agent." Any checks received made payable to a party other than the Escrow Agent
shall be returned to the soliciting dealer who submitted the check. Within one
(1) business day after receipt of instruments of payment from the Offering, the
Dealer Manager will send to you: (a) each subscriber's name, address, number of
shares purchased,

<PAGE>

and purchase price remitted, and (b) the instruments of payment from such
subscribers, for deposit by you into an interest-bearing deposit account
entitled "ESCROW ACCOUNT FOR THE BENEFIT OF SUBSCRIBERS FOR COMMON STOCK OF G
REIT, INC." (the "Escrow Account"), which deposit shall occur within one (1)
business day after you receive such materials. Instruments of payment and wired
funds received from Pennsylvania Investors (as identified as such by the
Company) shall be placed in a separate interest-bearing deposit account entitled
"ESCROW ACCOUNT FOR THE BENEFIT OF PENNSYLVANIA INVESTORS" (the "Pennsylvania
Escrow Account"). Instruments of payment and wired funds received from Oregon
Investors (as identified as such by the Company) shall be placed in a separate
interest-bearing deposit account entitled "ESCROW ACCOUNT FOR THE BENEFIT OF
OREGON INVESTORS" (the "Oregon Escrow Account"). Each of the Escrow Account,
Pennsylvania Escrow Account, and Oregon Escrow Account will be established and
maintained in such a way as to permit the interest income calculations described
in paragraph 7(a).

     2. You agree to promptly process for collection the instruments of payment
upon deposit into either the Escrow Account, the Pennsylvania Escrow Account, or
the Oregon Escrow Account. You will hold the deposited funds in the Escrow
Account, the Pennsylvania Escrow Account, and the Oregon Escrow Account until
such funds are disbursed in accordance with paragraph 3 hereof. If any of the
instruments of payment are returned to you for nonpayment prior to receipt by
you of the Required Capital or, in connection with subscriptions from
Pennsylvania Investors, the Pennsylvania Required Capital or, in connection with
subscriptions from Oregon Investors, the Oregon Required Capital, you shall
promptly notify the Dealer Manager and the Company in writing of such
nonpayment, and you are authorized to debit the Escrow Account, the Pennsylvania
Escrow Account, or the Oregon Escrow Account, as applicable, in the amount of
such return payment as well as any interest earned on the amount of such
payment.

     3. (a) Subject to the provisions of subparagraphs 3(b)-3(e) below:

            (i) once you have received and collected subscription proceeds in
the Escrow Account in collected funds an amount equal to or greater than the
Required Capital, you shall promptly notify the Company and, upon receiving
written instruction from the Company, (A) disburse to the Company, by check or
wire transfer, the funds in the Escrow Account representing the gross purchase
price for the Stock, and (B) disburse to the subscribers any interest thereon
calculated pursuant to the provisions of paragraph 7. For purposes of this
Agreement, the term "collected funds" shall mean all funds received by the
Escrow Agent have cleared normal banking channels and are in the form of cash.
Following such disbursements, the Escrow Account shall close and thereafter you
shall forward directly to the Company upon receipt by you any subscription
documents and instruments of payment received by you from subscribers other than
Pennsylvania Investors and Oregon Investors.

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            (ii) after the closing of the Escrow Account, the Company and the
Dealer Manager shall continue to forward to you instruments of payment and
subscriber information received from Pennsylvania Investors for deposit into the
Pennsylvania Escrow Account until such time as the Company notifies you in
writing that total subscription proceeds (not including the amount then in the
Pennsylvania Escrow Account) equal or exceed the Pennsylvania Required Capital.
Upon your receipt of a written notice from the Company that total subscription
proceeds (not including the amount then in the Pennsylvania Escrow Account)
equalling or exceeding the Pennsylvania Required Capital have been received in
collected funds, you shall (A) disburse to the Company, by check or wire
transfer, the funds then in the Pennsylvania Escrow Account representing the
gross purchase price for the Stock, and (B) disburse to the Pennsylvania
Investors any interest thereon calculated pursuant to the provisions of
paragraph 7. Following such disbursements, the Pennsylvania Escrow Account will
close and thereafter you shall forward directly to the Company upon receipt by
you any subscription documents and instruments of payment received by you.

            (iii) after the closing of the Escrow Account, the Company and the
Dealer Manager shall continue to forward to you instruments of payment and
subscriber information received from Oregon Investors for deposit into the
Oregon Escrow Account until such time as the Company notifies you in writing
that total subscription proceeds (not including the amount then in the Oregon
Escrow Account) equal or exceed the Oregon Required Capital. Upon your receipt
of a written notice from the Company that total subscription proceeds (not
including the amount then in the Oregon Escrow Account) equalling or exceeding
the Oregon Required Capital have been received in collected funds, you shall (A)
disburse to the Company, by check or wire transfer, the funds then in the Oregon
Escrow Account representing the gross purchase price for the Stock, and (B)
disburse to the Oregon Investors any interest thereon calculated pursuant to the
provisions of paragraph 7. Following such disbursements, the Oregon Escrow
Account will close and thereafter you shall forward directly to the Company upon
receipt by you any subscription documents and instruments of payment received by
you.

        (b) If, at the close of business on __________ ___, 200__ (the
"Expiration Date") you are not in receipt of evidence of subscriptions accepted
on or before such date, and instruments of payment dated not later than that
date (or actual wired funds), for the purchase of Stock providing for total
purchase proceeds that equal or exceed the Required Capital (from all sources
but exclusive of any funds received from subscriptions for Stock from entities
which the Company has notified you are affiliated with the Company or its
affiliates), you shall promptly so notify the Company. Thereafter, you agree to
request an executed IRS Form W-9 from each subscriber within ten (10) calendar
days after you provide such notice. On the tenth (10th) day following the date
of your receipt of the notice, you shall promptly return directly to each
subscriber by your check the collected funds deposited in the Escrow Account,
the Pennsylvania Escrow Account, and the Oregon

                                       3

<PAGE>

Escrow Account on behalf of such subscriber (unless earlier disbursed in
accordance with paragraph 3(c) below), or shall return the instruments of
payment delivered to you if such instruments have not been processed for
collection prior to such time, together with interest in the amounts calculated
pursuant to paragraph 7 for each subscriber at the address given to you by the
Dealer Manager or the Company. In the event an executed Form W-9 is not received
by you from each subscriber within such period, you shall thereupon remit an
amount to the subscribers in accordance with the provisions hereof, withholding
thirty-one percent (31%) of any interest income on subscription proceeds
(determined in accordance with paragraph 7) attributable to those subscribers
not furnishing executed forms in accordance with IRS Regulations. However, you
shall not be required to remit any payments until funds represented by such
payments have been collected by you.

         (c) Notwithstanding subparagraphs 3(a) and 3(b) above, if you are not
in receipt of evidence of subscriptions accepted on or before the close of
business on such date that is 120 days after commencement of the Offering (the
Company will notify you of the commencement date of the Offering) (the "Initial
Escrow Period"), and instruments of payment dated not later than that date (or
actual wired funds), for the purchase of Stock providing for total purchase
proceeds (from all sources other than Pennsylvania Investors) that equal or
exceed the Pennsylvania Required Capital, you shall promptly so notify the
Company. Thereafter, the Company shall send to each Pennsylvania Investor by
certified mail within ten (10) calendar days after the end of the Initial Escrow
Period a notification in the form of Exhibit A. If, pursuant to such
                                     ---------
notification, a Pennsylvania Investor requests the return of his or her
subscription funds within ten (10) calendar days after receipt of the
notification (the "Request Period"), you agree to request an executed IRS Form
W-9 from each such Pennsylvania Investor within ten (10) calendar days after you
receive such notice from such Pennsylvania Investor. You shall promptly return
directly to each Pennsylvania Investor by your check the collected funds
deposited in the Pennsylvania Escrow Account on behalf of each Pennsylvania
Investor, or shall return the instruments of payment delivered to you if such
instruments have not been processed for collection prior to such time, at the
address given to you by the Dealer Manager or the Company, together with
interest income in the amounts calculated pursuant to paragraph 7 for each
subscriber. If an executed Form W-9 is not received by you from such
Pennsylvania Investor within such period, you shall thereupon remit an amount to
such Pennsylvania Investor in accordance with the provisions hereof, withholding
thirty-one percent (31%) of any interest income earned on subscription proceeds
(determined in accordance with paragraph 7) attributable to such Pennsylvania
Investor not furnishing executed forms in accordance with IRS Regulations.
However, you shall not be required to remit any payments until funds represented
by such payments have been collected by you.

         (d) The subscription funds of Pennsylvania Investors who do not request
the return of their subscription funds within the Request Period shall

                                       4

<PAGE>

remain in the Pennsylvania Escrow Account for successive 120-day escrow periods
(each, a "Successive Escrow Period"), each commencing automatically upon the
termination of the prior Successive Escrow Period, and the Company and Escrow
Agent shall follow the notification and payment procedure set forth in
subparagraph 3(c) above with respect to the Initial Escrow Period for each
Successive Escrow Period until the occurrence of the earliest of (i) the
Expiration Date, (ii) the receipt and acceptance by the Company of subscriptions
for the purchase of Stock with total collected funds that equal or exceed the
Pennsylvania Required Capital and the disbursement of the Pennsylvania Escrow
Account on the terms specified herein, or (iii) all funds held in the
Pennsylvania Escrow Account having been returned to the Pennsylvania Investors
in accordance with the provisions hereof.

     (e) If the Company rejects any subscription for which you have already
collected funds, you shall, upon the written request of the Company, promptly
issue a refund check to the rejected subscriber. If the Company rejects any
subscription for which you have not yet collected funds but have submitted the
subscriber's check for collection, you shall promptly issue a check in the
amount of the subscriber's check to the rejected subscriber after you have
cleared such funds. If you have not yet submitted a rejected subscriber's check
for collection, you shall promptly remit the subscriber's check directly to the
subscriber.

     4. You shall report to the Company weekly the account balances in each of
the Escrow Account, the Pennsylvania Escrow Account, and the Oregon Escrow
Account and the activity in each account since the last report.

     5. Prior to the disbursement of funds deposited in the Escrow Account , the
Pennsylvania Escrow Account, or the Oregon Escrow Account in accordance with the
provisions of paragraph 3 hereof, you shall invest all of the funds deposited in
the Escrow Account, the Pennsylvania Escrow Account, and the Oregon Escrow
Account in "Short-Term Investments" (as defined below) in compliance with SEC
Rule 15c2-4 and you are further authorized and you agree to reinvest all
earnings and interest derived therefrom in Short-Term Investments specified
below. In the event that instruments of payment are returned to you for
nonpayment, you are authorized to debit the Escrow Account, the Pennsylvania
Escrow Account, or the Oregon Escrow Account, as applicable, in accordance with
paragraph 2 hereof.

        "Short-Term Investments" include obligations of, or obligations
guaranteed by, the United States government or bank money-market accounts or
certificates of deposit of national or state banks that have deposits insured by
the Federal Deposit Insurance Corporation (including certificates of deposit of
any bank acting as a depository or custodian for any such funds, including,
without limitation, such certificates or instruments of American International
Bank) which mature on or before the Expiration Date, unless such instrument
cannot be readily

                                       5

<PAGE>

sold or otherwise disposed of for cash by the Expiration Date without any
dissipation of the offering proceeds invested.

     The following securities are not permissible investments:

     (a)      money market mutual funds;
     (b)      corporate equity or debt securities;
     (c)      repurchase agreements;
     (d)      bankers' acceptances;
     (e)      commercial paper; and
     (f)      municipal securities.

     6. You are entitled to rely upon written instructions you receive from the
Company, unless you have actual knowledge that such instructions are not valid
or genuine; provided that, if in your opinion, any instructions from the Company
are unclear, you may request clarification from the Company prior to taking any
action and if such instructions continue to be unclear, you may rely upon
written instructions from the Company's legal counsel in distributing or
continuing to hold any funds. However, you shall not be required to disburse any
funds attributable to instruments of payment which have not been collected by
you, provided you shall use your best efforts to promptly collect such funds
after your receipt of disbursement instructions from the Company and shall
disburse such funds in compliance with the disbursement instructions from the
Company.

     7. If the Offering terminates prior to receipt of the Required Capital or
one or more Pennsylvania Investors elects to have his or her subscription
returned in accordance with paragraph 3, interest income earned on subscription
proceeds deposited in the Escrow Account (the "Escrow Income"), the Pennsylvania
Escrow Account (the "Pennsylvania Escrow Income"), and the Oregon Escrow Account
(the "Oregon Escrow Income") shall be remitted to subscribers in accordance with
paragraph 3 and without any deductions for escrow expenses. Each subscriber's
pro rata portion of Escrow Income, Pennsylvania Escrow Income, or Oregon Escrow
Income shall be determined as follows: the total amount of Escrow Income (or
Pennsylvania Escrow Income or Oregon Escrow Income, as appropriate) shall be
multiplied by a fraction, (i) the numerator of which is determined by
multiplying the number of shares of Stock purchased by said subscriber times the
number of days said subscriber's proceeds are held in the Escrow Account, the
Pennsylvania Escrow Account, or the Oregon Escrow Account, as applicable, prior
to the date of disbursement, and (ii) the denominator of which is the total of
the numerators for all such subscribers in such account. The Company shall
reimburse the Escrow Agent for all escrow expenses. You shall remit all such
Escrow Income, Pennsylvania Escrow Income, and Oregon Escrow Income in
accordance with paragraph 3.

                                       6

<PAGE>

     8. As compensation for serving as Escrow Agent hereunder, you shall receive
a fee, as set forth in Schedule A attached hereto.
                       ----------

     9. In performing any of your duties hereunder, you shall not incur any
liability to anyone for any damages, losses, or expenses, except for your
willful misconduct, breach of trust, or gross negligence. Accordingly, you shall
not incur any such liability with respect to any action taken or omitted (a) in
good faith upon advice of your counsel given with respect to any questions
relating to your duties and responsibilities under this Agreement, or (b) in
reliance upon any instrument, including any written instrument or instruction
provided for in this Agreement, not only as to its due execution and validity
and effectiveness of its provisions but also as to the truth and accuracy of
information contained therein, which you shall in good faith believe to be
genuine, to have been signed or presented by a proper person or persons and to
conform to the provisions of this Agreement.

     10. The Company hereby agrees to indemnify and hold you harmless against
any and all losses, claims, damages, liabilities, and expenses, including
reasonable attorneys' fees and disbursements, that may be imposed on you or
incurred by you in connection with your acceptance of appointment as the Escrow
Agent hereunder, or the performance of your duties hereunder, including any
litigation arising from this Agreement or involving the subject matter hereof,
except where such losses, claims, damages, liabilities, and expenses result from
your willful misconduct, breach of trust, or gross negligence.

     11. In the event of a dispute between the parties hereto sufficient in your
discretion to justify doing so, you shall be entitled to tender into the
registry or custody of any court of competent jurisdiction all money or property
in your hands under this Agreement, together with such legal pleadings as you
deem appropriate, and thereupon be discharged from all further duties and
liabilities under this Agreement. In the event of any uncertainty as to your
duties hereunder, you may refuse to act under the provisions of this Agreement
pending order of a court of competent jurisdiction and you shall have no
liability to the Company or to any other person as a result of such action. Any
such legal action may be brought in such court as you shall determine to have
jurisdiction thereof. The filing of any such legal proceedings shall not deprive
you of your compensation earned prior to such filing.

     12. All communications and notices required or permitted by this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally or by messenger or by overnight delivery service or when received via
telecopy or other electronic transmission, in all cases addressed to the person
for whom it is intended at such person's address set forth below or to such
other address as a party shall have designated by notice in writing to the other
party in the manner provided by this paragraph:

                                       7

<PAGE>

         (a)      if to the Company:

                  G REIT, Inc.
                  1551 N. Tustin Avenue, Suite 650
                  Santa Ana, California  92705
                  fax:     (714) 667-6860
                  Attn.:  Anthony W. Thompson, President

         (b)      if to the Dealer Manager:

                  NNN Capital Corp.
                  1551 N. Tustin Avenue, Suite 650
                  Santa Ana, California  92705
                  fax:     (714) 667-6860
                  Attn.:  Talle A. Voorhies

         (c)      if to you:

                  PriVest Bank
                  3200 Bristol Street
                  Costa Mesa, CA 92626
                  fax:     _________________
                  Attn.:  _________________

Each party hereto may, from time to time, change the address to which notices to
it are to be delivered or mailed hereunder by notice in accordance herewith to
the other parties.

     13. This Agreement shall be governed by the laws of the State of California
as to both interpretation and performance without regard to the conflict of laws
rules thereof.

     14. The provisions of this Agreement shall be binding upon the legal
representatives, successors, and assigns of the parties hereto.

     15. The Company and the Dealer Manager hereby acknowledge that you are
serving as Escrow Agent only for the limited purposes herein set forth, and
hereby agree that they will not represent or imply that you, by serving as
Escrow Agent hereunder or otherwise, have investigated the desirability or
advisability of investment in the Company or have approved, endorsed, or passed
upon the merits of the Stock or the Company, nor shall they use your name in any
manner whatsoever in connection with the offer or sale of the Stock other than
by acknowledgment that you have agreed to serve as Escrow Agent for the limited
purposes herein set forth.

                                       8

<PAGE>

     16. This Agreement and any amendment hereto may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed to be an
original.

     17. Except as otherwise required for subscription funds received from
Pennsylvania Investors and Oregon Investors as provided herein, in the event
that you receive instruments of payment (or wired funds) after the Required
Capital has been received and the proceeds of the Escrow Account have been
distributed to the Company, you are hereby authorized to deposit such
instruments of payment within one (1) business day to any deposit account as
directed by the Company. The application of said funds into a deposit account or
to forward such funds directly to the Company, in other case directed by the
Company shall be a full acquittance to you and you shall not be responsible for
the application of said funds thereafter.

     18. The Escrow Agent shall be bound only by the terms of this Escrow
Agreement and shall not be bound by or incur any liability with respect to any
other agreements or understanding between any other parties, whether or not the
Escrow Agent has knowledge of any such agreements or understandings.

     19. Indemnification provisions set forth herein shall survive the
termination of this Agreement.

     20. Unless otherwise provided in this Agreement, final termination of this
Escrow Agreement shall occur on the date that all funds held in the Escrow
Account are distributed either (a) to the Company or to subscribers pursuant to
paragraph 3 hereof or (b) to a successor escrow agent upon written instructions
from the Company.

     21. The Escrow Agent has no responsibility for accepting, rejecting, or
approving subscriptions.

     22. This Agreement shall not be modified, revoked, released, or terminated
unless reduced to writing and signed by all parties hereto, subject to the
following paragraph.

          If, at any time, any attempt is made to modify this Agreement in a
manner that would increase the duties and responsibilities of the Escrow Agent
or to modify this Agreement in any manner which the Escrow Agent shall deem
undesirable, or at any other time, the Escrow Agent may resign by providing
written notice to the Company and until (a) the acceptance by a successor escrow
agent as shall be appointed by the Company; or (b) thirty (30) days after such
written notice has been given, whichever occurs sooner, the Escrow Agent's only
remaining obligation shall be to perform its duties hereunder in accordance with
the terms of the Agreement.

     23. The Escrow Agent may resign at any time from its obligations under this
Escrow Agreement by providing written notice to the Company. Such

<PAGE>

resignation shall be effective on the date specified in such notice which shall
be not less than thirty (30) days after such written notice has been given. The
Escrow Agent shall have no responsibility for the appointment of a successor
escrow agent.

     24. The Escrow Agent may be removed for cause by the Company by written
notice to the Escrow Agent effective on the date specified in such written
notice. The removal of the Escrow Agent shall not deprive the Escrow Agent of
its compensation earned prior to such removal.

                            [Signature page follows]

                                       10

<PAGE>

Agreed to as of the ____ day of ________________, ______.

                     G REIT, INC.

                     By:  _______________________________________________
                     Name:   ____________________________________________
                     Title: _____________________________________________

                     NNN CAPITAL CORP.

                     By: _______________________________________________
                     Name:  ____________________________________________
                     Title: ____________________________________________

The terms and conditions contained above are hereby accepted and agreed to by:

PRIVEST BANK

By:      ____________________________________

Name:    ____________________________________
Title:   ____________________________________

                                       11

<PAGE>

                                    EXHIBIT A

                   [Form of Notice to Pennsylvania Investors]

         You have tendered a subscription to purchase shares of common stock of
G REIT, Inc. (the "Company"). Your subscription is currently being held in
escrow. The guidelines of the Pennsylvania Securities Commission do not permit
the Company to accept subscriptions from Pennsylvania residents until an
aggregate of $20,000,000 of gross offering proceeds have been received by the
Company. The Pennsylvania guidelines provide that until this minimum amount of
offering proceeds is received by the Company, every 120 days during the offering
period Pennsylvania subscribers may request that their subscription be returned.

         If you wish to continue your subscription in escrow until the
Pennsylvania minimum subscription amount is received, nothing further is
required.

         If you wish to terminate your subscription for the Company's common
stock and have your subscription returned please so indicate below, sign, date,
and return to the Escrow Agent, PriVest Bank, at the address below.

-----------------------------

         I hereby  terminate  my prior  subscription  to  purchase  shares of
common  stock of G REIT,  Inc.  and request the return of my
subscription funds.  I certify to G REIT, Inc. that I am a resident of
Pennsylvania.

                              ---------------------------------------------
                              Signature

                              Name:
                                   ---------------------------------------
                                   (please print)

Date
    -------------------------

Please send the subscription refund to:

--------------------------------------
--------------------------------------
--------------------------------------

                                       12

<PAGE>

                                  SCHEDULE A TO
                              ESCROW AGREEMENT FOR
                                  G REIT, INC.

                        Schedule of Fees - Escrow Agency
                                  PriVest Bank

Administration Fee - Payable Annually ..............................$__________
Commencing on the date of this Agreement and
on the same day of each year thereafter.

For costs incurred in connection with returned checks ..............$__________
                                                             per returned check

Charges for refunding subscription proceeds if the Required Capital, the
Pennsylvania Required Capital, or the Oregon Required Capital are not met will
be negotiated between the parties.

Charges for filing reports or information as may be required by Internal Revenue
Service regulations or for the performance of any services not contemplated at
the time of opening account, or not of a routine administrative nature, or not
specifically covered in this schedule, will be negotiated between the parties.

Actual out-of-pocket expenses such as attorneys fees, cost of special checks,
postage, insurance, telephone, telegraph, etc., will be billed at cost.

                                       13

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