Document:

[VitalStream
      Letterhead]

    

    

    August
      2,
      2006

     

    

    Eric
      Mersch

    2278
      Moresca Avenue

    Henderson,
      Nevada 89119

    

    Dear
      Eric,

    

    On
      behalf
      of VitalStream, I am pleased to offer you the exempt position of Chief Financial
      Officer starting on August 9, 2006. In this capacity you will report to Philip
      Kaplan, President and COO, and myself, Chief Executive Officer &
Chairman.

    

    Base
      compensation for the position if $180,000 annually ($7,500 per pay period)
      with
      two pay periods per month in accordance with VitalStream’s payroll practices.
      Additionally, you will be eligible to receive an annual bonus targeted at 30%
      of
      your annual base alary. The bonus criteria would be based on achieving
      predetermined goals set by the Company’s Board of Directors or its Compensation
      Committee, which for the balance of 2006 will be on a pro rata basis. The actual
      amount of bonus payment would take into consideration under or over achievement
      of the various components of the bonus criteria and therefore could result
      in a
      payment less than or greater than 30% of your annual base salary.

     

    Management
      will request that the VitalStream Board of Directors grant to you an option
      to
      purchase 125,000 shares of VitalStream Holdings, Inc. common stock at an
      exercise price equal to the closing price of the stock on the date of
      grant.

     

    It
      is
      important to note that our company adheres to the policy of employment-at-will,
      which enables either the company or the employee to terminate employment at
      any
      time with or without reason.

     

    Any
      controversy or claim arising out of, or relating to your employment with the
      company or termination of employment, shall be settled by final and binding
      arbitration in the city of Irvine, State of California, and governed by the
      law
      in and of the State of California and administered by the American Arbitration
      Association under its National Rules for Resolution of Employment Disputes.
      Judgment upon the award rendered by the arbitrator(s) may be entered in any
      court of competent jurisdiction.

     

    The
      claims covered by this agreement to arbitrate include, but are not limited
      to,
      claims for breach of contract, covenant of good faith and fair dealing, wage
      claims, wrongful termination in violation of public policy, retaliatory or
      constructive discharge, wrongful demotion, discrimination, harassment, or
      retaliation prohibited by law, tort claims, claims for violation of public
      policy or any other claim of a violation of a legally protected right afforded
      by State or Federal law, including, but not limited to, the California Fair
      Employment and Housing Act, Title VII of the Civil Rights Act, the Age
      Discrimination in Employment Act, the Americans with Disabilities Act, and
      the
      California Labor Code.

     

    This
      agreement to arbitrate excludes claims for normal workers’ compensation benefits
      and unemployment insurance benefits. You and VitalStream agree that neither
      shall initiate nor file any lawsuit or administrative action (other than a
      charge with the National Labor Relation Board, the Equal Employment Opportunity
      Commission, or the Department of Fair Employment and Housing) in any way related
      to any claim covered by this agreement to arbitrate.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    Letter
      to Eric Mersch

    Page
      2

    August
      2, 2006

     

    Your
      first ninety (90) days of employment at VitalStream are considered an
      Introductory Period, and during that period you will accrue holiday pay benefits
      described in the VitalStream Employee Manual, and benefits otherwise required
      by
      law. PTO benefits described in the Employee Manual will begin accruing after
      the
      successful completion of your Introductory Period. Under our current insurance
      plan, you will be eligible for health, vision and dental insurance beginning
      on
      the first day of the month following your date of hire.

     

    ViatalStream
      is a multimedia content company. In the ordinary course of business, VitalStream
      and its clients handle and display a wide variety of material that may or may
      not seem offensive depending on the individual. Therefore, by signing this
      letter, you acknowledge and accept that you any be directly or indirectly
      exposed to such content as part of your employment at VitalStream, and you
      assume the risk of such exposure.

     

    In
      accordance with Vital Stream policy, final confirmation of this employment
      offier is contingent upon the successful completion of VitalStream’s background
      verification process. This offer is also contingent on your reviewing and
      signing our standard employee documents, such as our confidentiality and
      work-for-hire agreement and employee manual.

     

    This
      letter shall constitute the entire Agreement between the parties regarding
      terms
      of employment, and shall supersede any and all understandings on this matter,
      whether written or oral, and shall not be deemed amended waived, or modified
      unless such amendment, waiver or modification is in writing and signed by an
      authorized office of VitalStream.

     

    Most
      importantly, we work hard, we have fun, and we plan to continue developing
      a
      world-class content delivery company. We are pleased to have you as part of
      our
      team.

     

    Unless
      accepted by you, this offer expires at the close of business on Monday, August
      7, 2006. Please indicate your acceptance of this offer by signing this letter
      where indicated below and returning a copy to VitalStream’s Human Resources
      department by confidential fax at (949) 743-2006.

    

    Sincerely,

    VitalStream
      Holdings, Inc.

    

    /s/
      Jack
      L. Waterman

    Chief
      Executive Officer & Chairman

     

     

    
      	Agreed & Accepted:	Date
	
               

               

              /s/ Eric
                Mersch                                         

              
                Eric
                  Mersch

              

            	
               

               

              August 2,
                2006PURCHASE AND SALE AGREEMENT
                                       and
                            JOINT ESCROW INSTRUCTIONS

         THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS
(hereinafter the "Agreement"), dated for reference purposes August 14, 2006
(hereinafter the "Effective Date"), is by and between SPI WILLOW PASS, L.P., a
California limited partnership (hereinafter the "Seller") and MARK D. ZIMMERMAN,
AS QUALIFIED EXCHANGE ACCOMMODATOR FOR MONTGOMERY REALTY GROUP, INC.
(hereinafter the "Accommodator") and MONTGOMERY REALTY GROUP, Inc., a Nevada
corporation (hereinafter the "Equitable Beneficiary") (hereinafter,
collectively, "Buyer").

         A.       Seller owns certain real property and improvements in the Park
                  and Shop Shopping Center in Concord, California, which real
                  property comprises approximately 1.15 acres and the
                  improvements thereon include approximately 99,000 square feet
                  of retail space.

         B.       Seller desires to sell such property to Buyer and Buyer
                  desires to purchase such property from Seller, on the terms
                  and conditions set forth in this Agreement.

         IN CONSIDERATION of the respective agreements hereinafter set forth,
Seller and Buyer agree as follows:

1.       PROPERTY INCLUDED IN SALE.

Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from
Seller, subject to the terms and conditions set forth herein, the following:

         (a) that certain real property located in Concord, California, more
particularly described in Exhibit "A" attached hereto (hereinafter the "Real
Property");

         (b) Seller's right, title and interest in any rights, privileges and
easements appurtenant to the Real Property, including, without limitation,
minerals, oil, gas and other hydrocarbon substances on and under the Real
Property, development rights, air rights, water, water rights, riparian rights
and water stock relating to the Real Property and rights-of-way or other
appurtenances used in connection with the beneficial use and enjoyment of the
Real Property (hereinafter, collectively, the "Appurtenances");

         (c) Seller's right, title and interest in the improvements and fixtures
located on the Real Property, including, without limitation, the building owned
by Seller located at 1675 Willow Pass Road, Concord, California, as well as any

                                       1
<PAGE>

other improvements located on the Real Property, all apparatus, equipment and
appliances used in connection with the operation or occupancy of the Real
Property, and all on-site parking (hereinafter, collectively, the
"Improvements");

         (d) Seller's right, title and interest in (i) the lease dated October
3, 1997 with Burlington Coat Factory Warehouse of Concord, Inc., and (ii) the
lease dated July 25, 2005 with Jo-Ann Stores, Inc. (hereinafter, collectively,
"Leases"); and

         (e) Seller's right, title and interest in: all permits, licenses,
governmental approvals and other entitlements relating to the Real Property and
Improvements, plans, specifications and drawings, property records (excluding
historical accounting records), security deposits under the Leases and any and
all guaranties of the Leases, any warranty and guaranty rights, and rights under
the HVAC Contract with ACCO Engineered Systems, each as they relate to the
ownership, use or operation of the Property, as defined below (hereinafter,
collectively, the "Intangible Property").

         All of the items described in subsections (a), (b), (c), (d) and (e)
above are intended to be consistent with each other and in furtherance of the
parties objective that Buyer is purchasing all of Seller's interests in the
Property itself so as to own and control such interests to the same extent that
Seller owns and controls them except as to those rights are non-assignable,
related to adjacent properties, or specifically excepted by other provisions of
this Agreement.

2.       PURCHASE PRICE.

         (a) The purchase price of the Property is Eighteen Million Two Hundred
Thousand Dollars ($18,200,000.00) (hereinafter the "Purchase Price") and shall
be paid as follows:

                  (i) Within two (2) business days after the Effective Date,
Buyer shall by wire transfer of funds deposit in escrow with First American
Title Insurance Company (hereinafter the "Title Company"), 1850 Mt. Diablo
Blvd., Suite 300, Walnut Creek, California 94596; Attention: Roni Sloan Loftin,
an initial deposit of Two Hundred Thousand Dollars ($200,000.00) (hereinafter
the "First Deposit"). If Buyer gives the Approval Notice pursuant to Section
4(h) and Lender thereafter approves Buyer's assumption of the Existing Loan (as
described in Section 4(f), the First Deposit shall be released to Seller and
shall be nonrefundable to Buyer unless escrow fails to close due to a default of
Seller. Upon release of the First Deposit to Seller, interest earned thereon
shall be paid to Buyer.

                  (ii) Prior to the end of the Due Diligence Period (as defined
below), if Buyer gives the Approval Notice pursuant to Section 4(h), Buyer shall
concurrently wire transfer for deposit in escrow with Title Company an
additional Three Hundred Thousand Dollars ($300,000.00) (hereinafter the "Second
Deposit"). Thereafter, if Lender approves Buyer's assumption of the Existing
Loan, the Second Deposit shall be released to Seller and shall be nonrefundable
to Buyer unless escrow fails to close due to a default of Seller. Upon release
of the Second Deposit to Seller, interest earned thereon shall be paid to Buyer.

                                       2
<PAGE>

For purposes hereof, "Deposit" shall refer initially to the First Deposit, and
upon Buyer's delivery of the Second Deposit, shall refer collectively to the
First Deposit and the Second Deposit. Upon the sale of the Property, the Deposit
shall be credited against the Purchase Price

                  (iii) The Title Company shall invest the First Deposit in
investments selected by Buyer and reasonably approved by Seller, which may
include, without limitation, any certificates of deposit, savings or other
accounts of any federally insured savings and loan association or bank.

                  (iv) The Existing Loan shall be assumed by Buyer:

         The balance of the Purchase Price, i.e., the Purchase Price, less the
outstanding principal balance of the Existing Loan assumed at the Closing, shall
be paid to Seller through escrow in immediately available funds at the closing
of the purchase and sale contemplated hereunder (hereinafter the "Closing"). The
Closing shall be deemed to occur upon the delivery and recording of the Deed (as
defined in Section 3(a) below).

3.       TRANSFER OF TITLE TO THE PROPERTY.

         (a) At the Closing, Seller shall convey to Buyer title to the Real
Property, the Appurtenances and the Improvements, by duly executed and
acknowledged grant deed in the standard form used by Title Company (hereinafter
the "Deed"). Evidence of delivery of title shall be the issuance by Title
Company to Buyer of an CLTA Owner's Policy of Title Insurance in the amount of
the Purchase Price, insuring fee simple title to the Real Property in Buyer
subject only to exceptions approved or waived by Buyer pursuant to Sections 4(c)
or 4(d) herein; provided that if Buyer pays the cost for an updated survey and
the incremental title insurance costs, such insurance shall be an ALTA extended
coverage policy (as so selected by Buyer, hereinafter the "Title Policy").

         (b) At the Closing, Seller shall transfer all of Seller's right, title
and interest in and to any Intangible Property (including the HVAC contract) by
an Assignment of Intangible Property in the form attached hereto as Exhibit "B"
(hereinafter the "Assignment of Intangible Property").

         (c) At the Closing, Seller shall assign to Buyer all of Seller's right,
title and interest in and to the Leases and Contracts and Buyer shall assume all
of Seller's obligations under the Leases, by an Assignment and Assumption of
Leases and Contracts in the form attached hereto as Exhibit "C" (hereinafter the
"Assignment and Assumption of Leases").

4.       DUE DILIGENCE PERIOD; AS-IS PURCHASE.

         (a) Due Diligence Period. Buyer, or its designees, shall have until
5:00 p.m. (Pacific Time) on Tuesday, September 5, 2006 (hereinafter the "Due
Diligence Period") to conduct its due diligence review with respect to the
Property.

                                       3
<PAGE>

         (b) Due Diligence Deliveries. Prior to the Effective Date, Seller
delivered to Buyer a preliminary report for the Real Property issued by Title
Company (hereinafter the " PTR"), and copies of the documents listed on Exhibit
"D" attached hereto (hereinafter "Due Diligence Documents"). In addition, upon
request of Buyer, Seller shall provide Buyer reasonable access to all relevant
files of Seller with respect to the Property for inspection and copying at
Seller's offices at 650 California Street, Suite 1288, San Francisco, California
94108, during regular business hours.

         (c) Title Matters; Buyer's Objections; Seller's Right to Cure. At least
five (5) business days prior to the expiration of the Due Diligence Period,
Buyer shall either approve the title exceptions shown on the PTR (which, for
purposes hereof, shall include any matters shown on the 2005 Survey, a copy of
which is included in the Due Diligence Documents) or notify Seller in writing of
Buyer's objection to any title exceptions. If Buyer does not timely provide any
such notification, Buyer shall be deemed to have disapproved all title
exceptions, this Agreement shall terminate, and the First Deposit shall be
returned to Buyer. If Buyer timely provides notice of objections, Seller then
shall have three (3) business days in which to notify Buyer whether Seller will
remove any such objectionable title exceptions. If Seller does not agree to
remove the objectionable title exceptions to Buyer's satisfaction on or at the
Closing, Buyer shall have the option to waive such objectionable title
exceptions and proceed to Closing, or to terminate this Agreement prior to the
end of the Due Diligence Period. If Buyer gives the Approval Notice pursuant to
Section 4(h), Buyer shall be deemed to have elected to waive such objectionable
title exceptions.

         (d) Upon the issuance of any amendment or supplement to the Preliminary
Title Report which adds additional exceptions (including, but not limited to,
adding additional exceptions for matters shown on the survey, the foregoing
right of review and approval shall also apply to said amendment or supplement
(provided that the period for Buyer to review such amendment or supplement shall
be the later of the expiration of the Due Diligence Period or three business (3)
days from receipt of the amendment or supplement) and Escrow shall be deemed
extended by the amount of time necessary to allow such review and approval in
the time and manner set forth above; provided, however, that in no event shall
the Close of Escrow be extended as a result of such delay for more than three
(3) days.

         (e) Buyer's Inspections. Upon 24 hours prior notice from Buyer to
Seller, Seller shall permit Buyer and its authorized agents and consultants to
enter upon the Property during reasonable business hours to make and perform
inspections and investigations of the Property Conditions (as defined in Section
4(g) below). Prior to entering upon the Property, Buyer shall provide to Seller
a certificate of insurance evidencing Buyer's or Buyer's agents' and/or
consultants', as applicable, procurement of a commercial general liability
insurance policy in the amount of One Million Dollars ($1,000,000) combined
single limit for injury to or death of one or more persons in an occurrence, and
for damage to property in an occurrence. In conducting any inspections,
investigations or tests of the Property, Buyer and its agents and
representatives shall: (i) not interfere with the tenants business operations on
the Property; (ii) not perform any invasive or destructive testing or sampling
without first obtaining Seller's approval of the work plan and consultant, which
approval shall not be unreasonably withheld; (iii) not injure Seller, its agents

                                       4
<PAGE>

or tenants or their respective agents, guests, invitees, contractors and
employees or subtenants; (iv) comply with all applicable laws; (v) promptly pay
when due the costs of all tests, investigations, and examinations done with
regard to the Property; (vi) not permit any liens to attach to the Property by
reason of the exercise of its rights hereunder; (vii) promptly repair any damage
to the Property resulting directly or indirectly from any such inspection or
tests; and (viii) not reveal or disclose prior to Closing any information
obtained by Buyer prior to Closing concerning the Property or documents related
thereto, except as may be otherwise required by law or as part of Buyer's
communications with Buyer's consultants as may be required to complete Buyer's
Due Diligence and to Close Escrow. Buyer shall afford Seller the opportunity to
have a representative of Seller present to accompany the party undertaking such
evaluations, inspections, tests and other investigations of the Property.
Buyer's obligations under this Section 4(d) survive any termination of this
Agreement.

         (f) Loan Assumption. The Property is currently encumbered by that
certain Twelve Million Four Hundred Thousand Dollars ($12,400,000) loan
(hereinafter the "Existing Loan") made to Seller by Eurohypo AG, New York
Branch. During the Due Diligence Period, Buyer shall review the Loan Documents
included in the Due Diligence Materials (hereinafter the "Loan Documents") and
Buyer shall commence efforts to obtain approval from Eurohypo AG, New York
Branch or the entity servicing the Existing Loan (for purposes hereof,
hereinafter the "Lender") for Buyer to assume the Existing Loan. If Buyer gives
the Approval Notice, Buyer shall be deemed to have approved the Loan Documents
and Buyer shall be deemed satisfied that it will be able to assume the Existing
Loan at Closing. At such time as Buyer submits an application to assume the
Existing Loan, Buyer shall pay any processing fee and other costs required by
Lender and Buyer shall provide a copy of such completed application to Seller.
If the loan assumption is approved, Buyer shall have sole responsibility for
payment of a 0.25.0% assumption fee and Lender's legal fees and other expenses.
Seller agrees to cooperate with Buyer's efforts to promptly obtain Lender's
approval of the loan assumption, as reasonably requested by Buyer. Buyer has
been informed that Dennis J. Wong provided a Guaranty of Recourse Obligations
and an Environmental Indemnity Agreement to Lender with respect to the Existing
Loan and that Lender will require Buyer to provide a financially responsible
person to provide a similar Guaranty of Recourse Obligations and Environmental
Indemnity Agreement to Lender. Buyer agrees to cause Mr. Dinesh Maniar to do so
upon the request of Lender. Seller makes a monthly deposit of One Thousand Two
Hundred Thirty-Nine Dollars and Thirty-Five Cents ($1,239.35) to Lender for a
reserve account (hereinafter the "Loan Reserve"). At Closing, such Loan Reserve
will be assigned to Buyer by Seller and Buyer shall reimburse Seller the amount
thereof. All other loan amounts, including, but not limited to, taxes and
insurance, if any, shall be assigned to Buyer with a credit to Seller at Closing
for such amounts.

         (g) "As-Is" Purchase. Buyer acknowledges that prior to Closing it will
have had the opportunity to inspect the Property and observe the physical
characteristics and condition of the Property and all other matters relating to
the Property or this Agreement and of concern to Buyer (hereinafter "Property
Conditions"), including: title; the environmental condition of the Property
(including the presence or absence of Hazardous Materials in, on or about the
Property); water, soil and geological conditions of the Property; the
suitability of the Property or any and all activities and/or uses which may be
conducted thereon; the compliance of or by the Property with any and all laws,

                                       5
<PAGE>

rules, ordinances or regulations of any applicable governmental authority or
body (including environmental, zoning, building codes, and the status of any
development or use rights respecting the Property); the habitability,
merchantability, marketability, profitability or fitness for a particular
purpose of the Property; or the physical condition of the Improvements,
including construction defects, deferred maintenance or other adverse physical
conditions or defects. Buyer further acknowledges and agrees that except for any
representations, warranties or agreement made by Seller herein, neither Seller
nor Seller's Broker nor any of Seller's employees, agents or representatives
have made any representations, warranties or agreements, express or implied, by
or on behalf of Seller as to any matters concerning the Property Conditions.
Subject to the preceding sentence, upon the Closing, Buyer acknowledges, agrees
and represents that the Property will be purchased, conveyed and accepted by
Buyer in its present condition, "AS IS", "WHERE IS" AND WITH ALL FAULTS, and
that no patent or latent defect or deficiency in the Property Conditions whether
or not known or discovered (other than the fraud or negligent misrepresentation
of Seller), shall affect the rights of either Seller or Buyer hereunder nor
shall the Purchase Price be reduced as a consequence thereof.

         Buyer acknowledges and agrees that by the end of the Due Diligence
Period, Buyer will have examined, reviewed and inspected the Property Conditions
and other matters which, in Buyer's judgment, bear upon the Property and its
value and suitability for Buyer's purposes; and upon Closing, Buyer will acquire
the Property solely on the basis of its own physical and financial examinations,
review and inspections and the title insurance protection afforded by the
owner's title policy.

         Upon Closing, Buyer shall assume the risk that all of the Property
Conditions may not have been revealed by Buyer's investigations. The release of
claims set forth below shall be referred to as the "Release". Upon the Closing
Buyer, on its own behalf and on behalf of each of its successors and assigns and
each and all of its and their respective members, officers, directors,
employees, parents, affiliates or subsidiaries and each of their respective
successors and assigns (hereinafter, collectively, "Waiver Parties") releases
Seller and its agents and employees (hereinafter, collectively, "Released
Parties") from, and waives any and all liability, claims, demands, damages and
costs (including attorneys' fees and expenses) of any and every kind or
character, known or unknown, for, arising out of, or attributable to, any and
all Property Conditions, including, without limitation, any and all actual,
threatened or potential claims, claims for contribution under Environmental
Laws, suits, proceedings, actions, causes of action, demands, liabilities,
losses, obligations, orders, requirements or restrictions, liens, penalties,
fines, charges, debts, damages, costs, and expenses of every kind and nature,
whether now known or unknown, whether foreseeable or unforeseeable, whether
under any federal, state or local law (both statutory and non-statutory), and,
whether asserted or demanded by a third party against any of the Waiver Parties
or incurred directly or indirectly by any of the Waiver Parties themselves
(excluding however, fraud of Seller) that any of the Waiver Parties may now or
hereafter have against any of the Released Parties (hereinafter, collectively,
"Claims"), and that arise in connection with or in any way are related to: (i)
the physical condition of the Property, the value of the Property or its
suitability for Buyer's use; (ii) the ownership, management or operation of the
Property, including the accuracy or completeness of any information reviewed by
Buyer in connection with its investigations of the Property and which may have

                                       6
<PAGE>

been relied upon by Buyer in deciding to purchase the Property; (iii) any
Hazardous Materials at, beneath, to, from or about the Property, and compliance
or non-compliance with Environmental Laws regarding any Hazardous Materials at,
beneath, to, from or about the Property; (iv) any acts, omissions, services or
other conduct related to any of the foregoing items "(i)" through "(iii),"
inclusive; and/or (v) any condition, activity or other matter respecting the
Property that is not addressed by any of the foregoing items "(i)" through
"(iv)," inclusive and that is related to pollution or protection of the
environment, natural resources, or public health. This Release shall survive the
close of Escrow and the recording of the deed conveying the Property from Seller
to Buyer.
         EXCEPT FOR FRAUD OR INTENTIONAL MISREPRESENTATION BY SELLER, BUYER
WAIVES THE PROVISIONS OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE ("SECTION
1542") AND ANY SIMILAR LAW OF ANY OTHER STATE, TERRITORY OR JURISDICTION.
SECTION 1542 PROVIDES:

                  "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                  CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR
                  AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR
                  HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
                  THE DEBTOR."

         BUYER ACKNOWLEDGES THAT BUYER HAS CAREFULLY REVIEWED THIS SUBSECTION
AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL AND THAT THE PROVISIONS OF THIS
SUBSECTION ARE A MATERIAL PART OF THIS AGREEMENT.

                                 DM            MDZ
                        ---------------- ----------------
                        Buyer's Initials Buyer's Initials

         As used in this Agreement, the following terms have the following
definitions:

                  (1) "Environmental Laws" means any applicable federal, state
or local law, statute, regulation, rule, ordinance, permit, prohibition,
restriction, license, requirement, agreement, consent, or approval, or any
determination, directive, judgment, decree or order of any executive,
administrative or judicial authority at any federal, state or local level
(whether now existing or subsequently adopted or promulgated) relating to
pollution or the protection of the environment, natural resources or public
health and safety.

                  (2) "Hazardous Materials" means and shall include, without
limitation, the following: any material or substance which is (i) defined as a
"hazardous waste," "extremely hazardous waste," "restricted hazardous waste,"
"hazardous substance," or "hazardous material" under the laws or regulations of
the State of California, (ii) petroleum, (iii) asbestos and asbestos containing
materials, (iv) designated as a hazardous waste pursuant to Section 311 of the

                                       7
<PAGE>

Federal Water Pollution Control Act (33 USC ss. 1317), (v) defined as hazardous
waste pursuant to Section 1004 of the Federal Resource Conservation Recovery Act
(42 USC ss. 1601 et seq.) (42 USC ss. 6903), (vi) defined as a hazardous
substance pursuant to Section 101 of the Comprehensive Environmental Response
Compensation Liability Act (42 USC ss. 9601 et seq.), (vii) anything listed by
the State of California as a chemical known by the State to cause cancer or
reproductive toxicity pursuant to Section 25249.8 (a) of the California Health
and Safety Code, (viii) any material the presence of which would require
remediation pursuant to the guidelines set forth in the State of California
Leaking Underground Fuel Tank Field Manual, whether or not the presence of such
material resulted from a leaking underground fuel tank, and (ix) mold.

         (h) Expiration of Due Diligence Period. Buyer shall have until
expiration of the Due Diligence Period to deliver notice (hereinafter the
"Approval Notice") to Seller and Title Company that Buyer has approved its due
diligence evaluation of the Property, which Buyer may approve or disapprove in
its sole and absolute discretion. If Buyer does not deliver the Approval Notice
before the end of the Due Diligence Period, Buyer shall be deemed to have
elected to terminate this Agreement. If Buyer elects, or is deemed to have
elected, to terminate this Agreement in accordance with this Section 4(h), the
First Deposit shall be returned to Buyer and neither party shall have any rights
or obligations hereunder (except to the extent otherwise provided herein). If
Buyer timely gives the Approval Notice, Buyer shall, within two (2) business
days, make the Second Deposit.

         (i) Buyer's Due Diligence Indemnity. Buyer shall indemnify, protect,
defend and hold Seller and the Property free and harmless from and against any
and all mechanic's liens arising from Buyer's due diligence activities on the
Property. Buyer also shall indemnify, protect, defend and hold Seller and the
Property free and harmless from and against any other Claims arising from the
negligence or willful misconduct of Buyer, Buyer's agents, contractors or
subcontractors, or the contractors and subcontractors of such agents, in
connection with Buyer's entry or activities upon the Property. The indemnity
provisions of this Section 4(i) shall survive the Closing or earlier termination
of this Agreement

         (j) Termination of Agreement. If this Agreement is terminated prior to
Closing for any reason other than Seller's default hereunder, then promptly
following such termination (and as a condition to return of the Deposit to Buyer
if Buyer is so entitled), Buyer shall return to Seller, within five (5) business
days after termination: (i) all original Due Diligence Documents and copies made
by Buyer or transferees thereof from Buyer; and (ii) copies of all third party
reports and studies relating to the Property received by Buyer, but without any
representation or warranty by Buyer.

5.       CONDITIONS TO CLOSING.

         (a) Buyer's Conditions to Closing. The following conditions are
precedent to Buyer's obligation to purchase the Property (hereinafter the
"Buyer's Conditions"):

                  (i) Title Insurance. Title Company shall have issued or shall
have unconditionally and irrevocably committed to issue an ALTA extended

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<PAGE>

coverage title policy for the Purchase Price on Title Company's current form
insuring fee ownership of the Property free and clear of all exceptions other
than those caused or approved (or herein deemed approved) by Buyer. Buyer may
request additional title policy forms or endorsements, but such shall not
constitute a Buyer Condition.

                  (ii) Representations, Warranties and Covenants. Seller shall
have materially performed each covenant required to be performed by Seller under
this Agreement and all of Seller's representations and warranties set forth in
this Agreement shall be materially true and correct as of the Closing. On the
Closing, Buyer waives all Seller defaults known to Buyer.

                  (iii) Estoppel Certificates. Buyer shall have received an
estoppel certificate dated within 30 days prior to the initially established
Closing Date executed by each of the two tenants under the Leases in the form
attached hereto as Exhibit "E", provided however that if after Seller exercises
commercially reasonable efforts, any such tenant refuses to execute such form of
estoppel certificate because another form is attached to such tenant's lease,
then the form attached to such tenant's lease shall be acceptable; and provided
further however, the form of estoppel certificate shall be modified to complete
the relevant information for the respective lease and the form attached hereto
as Exhibit "E" may be modified by or for the respective tenants to delete or
modify provisions which such tenant asserts are not required by the estoppel
certificate under its respective lease, but any such estoppel certificate shall
contain no statement or information which is materially inconsistent with the
provisions of such tenant's lease as delivered to Buyer. The estoppel
certificates delivered hereunder are referred to hereinafter as the "Estoppel
Certificates".

         Buyer's Conditions are intended solely for the benefit of Buyer. If any
of Buyer's Conditions is not timely satisfied for any reason other than Buyer's
default hereunder, Buyer shall have the right in its sole discretion to either
(i) waive in writing such Buyer's Condition and proceed with the Closing, or
(ii) terminate this Agreement, in which event the Deposit shall be returned to
Buyer. Upon such termination of this Agreement by Buyer and disposition of the
Deposit as provided above, neither party shall have further obligations under
this Agreement (other than obligations which by their terms survive such a
termination); provided, however, that if Seller is in default, Buyer shall
retain its remedies against Seller as provided in Section 6(b) below.

         (b) Seller's Conditions to Closing. The following conditions are
precedent to Seller's obligation to sell the Property (hereinafter the "Seller's
Conditions"):

                  (i) Deposit of Funds. Buyer shall have deposited the balance
of the Purchase Price into escrow, and such other funds as may be required
pursuant to Section 7(f) and any other provisions of this Agreement.

                  (ii) Deliveries Complete. Buyer shall have delivered to Title
Company the documents listed in Section 7(d) of this Agreement.

                                       9
<PAGE>

                  (iii) Representations, Warranties and Covenants. Buyer shall
have performed each and every covenant required to be performed by Buyer under
this Agreement and all of Buyer's representations and warranties set forth in
this Agreement shall be true and correct as of the Closing.

                  (iv) Loan Assumption. At Closing, Buyer shall assume the
Existing Loan and Lender shall release Seller and Dennis J. Wong from liability
under the Existing Loan with respect to the period after the Closing.

         Seller's Conditions are intended solely for the benefit of Seller. If
any of Seller's Conditions is not satisfied, Seller shall have the right in its
sole discretion either to (i) waive in writing the Seller's Condition and
proceed with the sale, or (ii) terminate this Agreement and retain the Deposit
as liquidated damages, as provided herein. Upon such termination of this
Agreement by Seller and disposition of the Deposits as provided above, neither
party shall have further obligations under this Agreement (other than
obligations which by their terms survive such a termination); provided however
that if Buyer is in default, Seller shall retain both Deposits as liquidated
damages, as provided in Section 6(a) below.

6.       REMEDIES.

         (a) Default by Buyer Prior to Closing. IF THE SALE OF THE PROPERTY IS
NOT CONSUMMATED BECAUSE OF A BREACH OR DEFAULT UNDER THIS AGREEMENT BY BUYER,
THE DEPOSIT SHALL BE RETAINED BY SELLER AS LIQUIDATED DAMAGES AND AS SELLER'S
SOLE REMEDY FOR SUCH BREACH OR DEFAULT. BY INITIALING BELOW, THE PARTIES HAVE
AGREED THAT SELLER'S ACTUAL DAMAGES IN THE EVENT OF A FAILURE TO CONSUMMATE THIS
SALE DUE TO BUYER'S DEFAULT WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO
DETERMINE. AFTER NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING ALL THE
CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THE AMOUNT OF THE DEPOSIT
IS A REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER WOULD INCUR IN SUCH EVENT.
THE PAYMENT AND RETENTION OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED
AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS
3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER
PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. SELLER WAIVES
ALL RIGHT TO SEEK OTHER RIGHTS OR REMEDIES AGAINST BUYER, INCLUDING, WITHOUT
LIMITATION, SPECIFIC PERFORMANCE. HOWEVER, NOTHING IN THIS SECTION SHALL
PRECLUDE THE RECOVERY OF ATTORNEYS' FEES OR OTHER COSTS INCURRED BY SELLER IN
ENFORCING THIS AGREEMENT OR LIMIT THE EFFECTIVENESS OF THE INDEMNIFICATION
OBLIGATIONS OF BUYER UNDER SECTION 4(i) AND 13(b) OF THIS AGREEMENT.

         INITIALS:         Seller    DW        Buyer    DM       Buyer    MDZ
                                 -----------        ----------        ----------

                                       10
<PAGE>

         (b) Default by Seller Prior to Closing. If the sale of the Property is
not consummated because of a breach or default under this Agreement by Seller,
Buyer may, as Buyer's sole and exclusive remedy exercise one, and only one, of
the following: (i) terminate this Agreement by delivery of notice of termination
to Seller, whereupon the Deposit shall be returned to Buyer and Seller shall
reimburse Buyer for out-of-pocket expenses incurred in connection with the
transaction contemplated hereunder provided Buyer submits to Seller evidence
satisfactory to Seller that Buyer has incurred and paid for such expenses, which
expenses shall include costs reasonably incurred by Buyer in attempting to
assume the Existing Loan, including but not limited to processing fees, lender's
legal fees, Buyer's legal fees, and third party report fees, and all parties
hereto shall be relieved of all further obligations hereunder (other than
obligations which by their terms survive such a termination); or (ii) close and
waive the default; or (iii) no later than 30 days after the date of the
scheduled Closing, commence an action for specific performance; provided however
that if after Buyer's Due Diligence Approval as set forth in Section 4(h),
Seller is in breach and the Closing does not occur on or before November 10,
2006, if such breach by Seller is an intentional and willful failure to close
escrow hereunder, then Seller shall be liable to Buyer for any tax liability
incurred by Buyer due to Buyer's failure to complete its Section 1031 exchange
hereunder.

7.       CLOSING AND ESCROW.

         (a) Escrow Instructions. Upon mutual execution of this Agreement, the
parties shall deposit an executed counterpart of this Agreement with Title
Company as instructions to Title Company as the escrow holder for consummation
of the purchase and sale contemplated hereby. Seller and Buyer each agrees to
execute such additional escrow instructions as may be appropriate, or required
by Title Company, to enable the escrow holder to comply with this Agreement;
provided that in the event of any conflict between the provisions of this
Agreement and any supplementary escrow instructions, the terms of this Agreement
shall control.

         (b) Closing Date. The Closing hereunder shall be held and delivery of
all items to be made at the Closing shall be made at the offices of Title
Company on or before 10 a.m. (Pacific Time) on October 4, 2006; provided that
Buyer shall have the right to extend the Closing for 30 days by giving notice of
such extension to Seller and Title Company at least ten (10) days prior to the
date initially established as for the Closing hereunder. Notwithstanding the
foregoing, in no event shall the Closing occur after November 10, 2006.

         (c) Seller's Deliveries. At or before the Closing, Seller shall deliver
to Buyer, or to Title Company as escrow holder, the following:

                  (i) a duly executed and acknowledged Deed;

                  (ii) two (2) duly executed counterparts of the Assignment of
Intangible Property;

                  (iii) two (2) duly executed counterparts of the Assignment and
Assumption of Leases;

                                       11
<PAGE>

                  (iv) the Estoppel Certificates;

                  (v) duly executed notices to the tenants under the Leases of
the sale of the Property, in the form of Exhibit "F" attached hereto;

                  (vi) the originals (or to the extent originals are not
available, copies) of the Leases;

                  (vii) any documents representing any Intangible Property being
conveyed to Buyer, each to the extent in Seller's or its agents' possession;

                  (viii) any other instruments or records called for hereunder
which have not previously been delivered, and keys to all doors to the
Improvements which are in Seller's or its agents' possession; and

                  (ix) a California 593-C Certificate and an affidavit pursuant
to Section 1445(b)(2) of the United States Internal Revenue Code (hereinafter
the "Code") and on which Buyer is entitled to rely, that Seller is not a
"foreign person" within the meaning of Section 1445(f)(3) of the Code,
substantially in the form of Exhibit "G" attached hereto.

         Buyer may waive compliance on Seller's part under any of the foregoing
items by an instrument in writing.

         (d) Buyer's Deliveries. At or before the Closing, Buyer shall deliver
to Seller, or to Title Company as escrow holder, the following:

                  (i) two (2) duly executed counterparts of the Assignment of
Intangible Property;

                  (ii) two (2) duly executed counterparts of the Assignment and
Assumption of Leases;

                  (iii) such resolutions and authorizations relating to Buyer as
shall be reasonably required by Seller or Title Company; and

                  (iv) the Purchase Price, less the outstanding principal amount
of the Existing Loan and the Deposit, as the Purchase Price is adjusted for
prorations and costs as provided herein. As provided in Section 4(f), Buyer
shall also deposit funds to reimburse Seller for the amount then held by Lender
in the Loan Reserve.

         Seller may waive compliance on Buyer's part under any of the foregoing
items by an instrument in writing.

                                       12
<PAGE>

         (e) Additional Deposits. Seller and Buyer shall each deposit such other
instruments as are reasonably required by the escrow holder or otherwise
required to close the escrow and consummate the purchase and sale of the
Property in accordance with the terms hereof.

         (f) Prorations. The following are to be apportioned as of the Closing
Date:

                  (i) Rents. Rent, arrearages, operating cost pass-throughs and
other additional rent or charges payable to landlord under the Leases
(hereinafter, collectively "Rent") and prepaid rent under the Leases shall be
apportioned as of the Closing Date, to the extent then paid, based on the actual
number of days in the month or other applicable period during which the Closing
occurs. Security deposits shall be considered a credit to Buyer for closing
settlement purposes. Buyer shall exercise commercially reasonable efforts to
collect for the account of Seller any Rent payable for the periods prior to the
Closing; provided that Buyer shall have no obligation to initiate litigation
with respect thereto. With respect to any Rent arrearages existing under the
Leases or operating cost pass-throughs billed by or paid to Buyer after Closing,
Buyer promptly shall pay to Seller any amounts actually collected which are
applicable to the period preceding the Closing Date. Unless the Tenant
designates otherwise, all Rent received by Buyer after Closing shall be first
applied to unpaid Rent that has accrued after the Closing, and then to unpaid
Rent that accrued prior to the Closing Date. Seller shall not invoice Tenants
directly after the Closing, but shall work through Buyer to collect any rents
for the period prior to Closing and Buyer shall cooperate with such efforts of
Seller. Buyer shall not be required to initiate any action to recover any Rent
payable for period prior to Closing, but shall join in action initiated by
Seller to the extent reasonably necessary to obtain the relief sought, at
Seller's cost. Percentage rents and CAM shall be deemed to accrue evenly over a
given period based on the number of days elapsed.

                  (ii) Leasing Costs. Seller shall pay all leasing commissions,
tenant improvement costs and other tenant inducements as set forth in the Leases
(hereinafter the "Lease Costs") that are accrued, due and payable or required to
be expended before the Closing Date. Buyer shall assume and be responsible to
pay only those Lease Costs that are first arising or accruing on or after the
Closing Date, including those that arise as a result of Lease extensions or
renewals first exercised by tenants after the Closing.

                  (iii) Utility Charges; Other Apportionments. To the extent
Seller (rather than a tenant) is responsible to pay utility charges at the
Property, Seller shall have all meters read and Seller shall pay all utility
charges one (1) day prior to the Closing Date. Buyer will arrange for utilities
to be placed in its name as of the Closing Date and will pay to Seller at
Closing the amount of any deposit(s) made by Seller, and Seller will transfer
and assign to Buyer all of its right, title and interest in and to the
applicable deposit(s) relating thereto. Buyer will be responsible for the cost
of all utilities used on or after the Closing Date. Amounts payable under the
HVAC Contract with ACCO Engineered Systems, interest under the Existing Loan,
annual or periodic permit and/or inspection fees, and liability for other
Property operation and maintenance expenses and other recurring costs will be
pro rated as of the Closing Date.

                                       13
<PAGE>

                  (iv) Closing Costs. Buyer shall pay the premium for Buyer's
title policy, all costs incurred to update the ALTA survey, all costs pertaining
to assumption of the Existing Loan, and fifty percent (50%) of the escrow fees.
Seller shall pay all city and county real estate transfer taxes and (50%) of the
escrow fees. Payment of all other costs incurred in connection with the
transaction contemplated by this Agreement shall be allocated between Buyer and
Seller in accordance with the custom of Contra Costa County, as reasonably
determined by Title Company.

                  (v) Real Estate Taxes and Special Assessments. General real
estate taxes and assessments and personal property taxes payable for all tax
years ending prior to the Closing Date, and any supplemental tax assessments
relating to the period of time prior to the Closing, will be paid by Seller or
by tenants pursuant to the terms of the applicable Leases, to the extent such
amounts are to be paid by such tenants. As necessary, general real estate taxes
and assessments and personal property taxes payable for the tax year in which
the Closing Date occurs will be prorated by Seller and Buyer as of the Closing
Date.

                  (vi) Closing Statement. Title Company shall prepare a
preliminary Closing settlement statement and shall deliver such statement to
Buyer and Seller for approval no less than three (3) days prior to the Closing
Date.

                  (vii) Post-Closing Reconciliation. Seller and Buyer agree that
if any of the foregoing prorations cannot be calculated accurately as of the
Closing Date, then the same shall be estimated (based on current information
then known, such as the most recent tax bills) for the purposes of Closing and
within ninety (90) days after the Closing Date, or sooner if sufficient
information is available to permit the parties to effectively calculate such
prorations, either party owing the other party a sum of money based on such
subsequent prorations shall pay such sum to the other party within ten (10) days
after such calculations.

                  (viii) Survival. The provisions of this Section 7(f) shall
survive the Closing.

8.       REPRESENTATIONS AND WARRANTIES OF SELLER.

         The phrase "to Seller's knowledge" means to the actual, present
knowledge of Gary Miranda and Peter Meier, without any duty of inquiry,
investigation or inspection. Seller represents and warrants to Buyer as follows.
Except for Seller's representations which cannot be verified or investigated by
Buyer using due diligence experts and consultants, Buyer shall not rely upon
Seller's representations and warranties in purchasing the Property and shall
instead rely upon its own due diligence and third party reports; provided,
however, that all of Seller's representations set forth herein shall be true at
the Closing; and (ii) provided, further, that Buyer may rely upon Seller's
representations and warranties in Closing the transaction contemplated herein.
All of the following representations shall be true at the time of execution of
this Agreement and shall be true at the Closing; provided, however, that said
representations shall not survive the Closing, shall not be deemed continuing
representations and are made at Buyer's request so as to permit Buyer to close
this transaction on an "AS IS" basis as set forth in Section 4(g) above.

                                       14
<PAGE>

                  (i) Title. Seller has not entered into any conditional sales
contracts, options, rights of first refusal, or similar agreements affecting the
Property that remain in effect.

                  (ii) Zoning and Use. Seller has not received written notice
from any governmental authority that the Property is not in compliance with or
violates applicable environmental building and zoning laws, rules or regulations
or governmental rules or regulations.

                  (iii) No Litigation. To Seller's knowledge, there are no
pending or threatened claims or lawsuits of any kind against Seller or the
Property, whether for personal injury, property damage, landlord-tenant
disputes, property taxes, or otherwise, that could materially and adversely
affect the operation or value of the Property or prohibit the sale thereof.

                  (iv) Insurance Indemnifications. Seller has not received
notices by any insurance company which has issued a policy with respect to any
portion of the Property, or by any board of fire underwriters, or from any
governmental authority, of zoning, building, fire, or health code violations in
respect to the Property.

                  (v) Enforceability of Agreement. The person executing any
instruments for or on behalf of the Seller was fully authorized to act on behalf
of Seller and that the Agreement is valid and enforceable against Seller in
accordance with its terms and each instrument to be executed by Seller pursuant
hereto or in connection therewith will, when executed, be valid and enforceable
against Seller in accordance with its terms. No approval, consent, order or
authorization of, or designation, registration or declaration with, any
governmental authority, including, but not limited to, subdivision approval, is
required in connection with the valid execution and delivery of and compliance
with this Agreement by Seller.

                  (vi) Leases. Exhibit "D" attached hereto contains a complete
and correct list of all Leases, including any amendments, modifications or
supplements thereto, and the tenant, licensee or occupant thereunder is in
actual possession.

                  (vii) Leasing Commissions. As of the Closing, no brokerage or
leasing commissions or other compensation will be due or payable to anyone with
respect to or on account of any of the Leases.

                  (viii) Personal Property; Service Contracts. Seller does not
own any personal property that is used in connection with the ownership or
operation of the Property. Except for the HVAC Contract with ACCO Engineered
Systems, there is no agreement, in writing or otherwise, between the Seller and
any other person or persons for service, supply, maintenance, or the operation
of the Property.

                  (ix) Hazardous Waste. To Seller's knowledge, and except as may
be disclosed in the Due Diligence Documents, (a) the Property has not at any
time been used for the purposes of storing, manufacturing, releasing or dumping
Hazardous Materials or Substances, except for normal quantities of Hazardous
Materials or Substances utilized in connection with the normal maintenance and
operation of the Property in compliance with all Environmental Laws (as

                                       15
<PAGE>

hereinafter defined) and so-called household and cleaning Hazardous Materials
utilized by tenants of the Property; and (b) no underground storage tanks,
pipelines or clarifiers have been or are located on the Property. "Hazardous
Materials" or "Substances" shall mean (1) hazardous wastes, hazardous materials,
hazardous substances, hazardous constituents, toxic substances or related
materials, whether solids, liquids or gases, including, but not limited to,
substances deemed as "hazardous wastes," "hazardous materials," "hazardous
substances," "toxic substances," "pollutants," "contaminants," "radioactive
materials," or other similar designations in, or otherwise subject to regulation
under, the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended (hereinafter "CERCLA"), 42 U.S.C. ss. 9601 et seq.; the
Toxic Substance Control Act (hereinafter "TSCA"), 15 U.S.C. ss. 2601 et seq.;
the Hazardous Materials Transportation Act, 49 U.S.C. ss. 1802; the Resource
Conservation and Recovery Act (hereinafter "RCRA"), 42 U.S.C. ss. 9601, et seq.;
the Clean Water Act (hereinafter "CWA"), 33 U.S.C. ss. 1251 et seq.; the Safe
Drinking Water Act, 42 U.S.C. ss. 300 et seq.; the Clean Air Act (hereinafter
"CAA"), 42 U.S.C. ss. 7401 et seq.; the Hazardous Waste Control Law, California
Health and Safety Code ss. 25025 et seq., the Carpenter-Presley-Tanner Hazardous
Substance Account Act, California Health and Safety Code, Division 20, Chapter
6.8, the Hazardous Materials Release Response Plans and Inventory Act,
California Health and Safety Code, Division 20, Chapter 6.95, The Underground
Storage of Hazardous Substances Act, California Health and Safety Code, Division
20, Chapter 6.7, the Porter-Cologne Act, California Water Code ss. 13050 et seq.
and in any applicable permits, licenses, approvals, plans, rules, regulations or
ordinances adopted, or other criteria and guidelines promulgated pursuant to the
preceding laws or other similar federal, state or local laws, regulations, rules
or ordinances now in effect relating to environmental matters (hereinafter,
collectively, "Environmental Laws"); and (2) any other substances, constituents
or wastes subject to any applicable federal, state or local law, regulation,
ordinance or common law doctrine, including any Environmental Law, now in
effect, including, but not limited to, (A) petroleum, (B) refined petroleum
products, (C) waste oil, (D) waste aviation or motor vehicle fuel, (E) asbestos,
(F) lead in water, paint or elsewhere, (G) radon, (H) polychlorinated biphenyls
(PCB's) and (I) ureaformaldehyde.

                  (x) Black Mold. To Seller's knowledge, no tenant has commenced
any litigation concerning black mold nor has any such litigation been
threatened. Buyer shall rely upon its own experts to determine whether or not ,
the levels of mold or fungi, including, but not limited to,
penicillium/aspergillus and stachybotrys chartarum, located within the
improvements on the Property, are greater than the levels of such mold or fungi
located in the outdoor environment and there are not accumulations of mold or
fungi located in the interior of the Buildings.

                  (xi) Operating Statements. To Seller's knowledge, the
operating statements delivered to Buyer present fairly the financial condition
of the Property at such date and the result of its operations for the period
then ended.

                  (xii) Foreign Person. Seller is not a "foreign person" as that
term is defined in Section 1445(f) of the Code and any similar provisions of
applicable state law, and the regulations issued thereunder.

                                       16
<PAGE>

         If Seller becomes aware of any act or circumstance which would change
or render incorrect, in whole or in part, any representation or warranty made by
Seller under this Agreement, whether as of the date given or any time thereafter
prior to the Closing Date and whether or not such representation or warranty was
based upon Seller's knowledge and/or belief as of a certain date, Seller will
give prompt written notice of such changed fact or circumstance to Buyer, but
such notice shall not release Seller of its liabilities or obligations with
respect thereto, if any. At Buyer's request, at Closing, Seller shall issue a
Certificate stating that all the representations and warranties contained in
this Section 8.1 are true and correct as of said date, or setting forth in
detail which of such matters are not true and correct.

         ALL REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS SECTION 8 MADE IN
WRITING BY SELLER IN CONNECTION WITH THE TRANSACTIONS HEREIN PROVIDED FOR SHALL
BE TRUE AND CORRECT ON THE DATE HEREOF AND ON THE CLOSING DATE. THESE
REPRESENTATIONS AND WARRANTIES SHALL NOT SURVIVE THE CLOSING AND THE PROPERTY
SHALL BE CONVEYED "AS IS."

9.       REPRESENTATIONS AND WARRANTIES OF BUYER.

Buyer represents and warrants to Seller as follows:

         (a) Buyer is duly organized, validly existing and qualified and
empowered to conduct its business, and has full power and authority to enter
into and perform the terms of this Agreement.

         (b) This Agreement is duly authorized and executed by Buyer, and this
Agreement and all documents required to be executed by Buyer in connection
herewith, are and shall be valid, legally binding obligations of Buyer,
enforceable in accordance with their terms.

         (c) To Buyer's knowledge, no action, proceeding or investigation is
pending or threatened against Buyer, before any court or governmental
department, commission, board, agency or instrumentality that would affect its
ability to carry out its obligations under this Agreement.

10.      RISK OF LOSS.

In the event any of the Property is damaged or destroyed prior to the Closing
Date, and such damage or destruction: (i) would cost less than One Hundred
Thousand Dollars ($100,000) to repair and is fully covered by Seller's
insurance, except for the deductible amounts thereunder, which deductible
amounts are less than Fifty Thousand Dollars ($50,000); or (ii) is uninsured and
would cost less than Fifty Thousand Dollars ($50,000) to repair or restore, then
this Agreement shall remain in full force and effect and Buyer shall acquire the
Property upon the terms and conditions set forth herein (hereinafter "Minor
Casualty"). In such event, Buyer shall receive a credit against the Purchase
Price equal to such (a) deductible amount (except the portion applied to

                                       17
<PAGE>

repairs), and Seller shall assign to Buyer the proceeds of insurance payable on
account of such damage or destruction or (b) if clause (ii) above is applicable,
the remaining cost to repair and restore. In the event of a casualty other than
a Minor Casualty or the Property becomes the subject of any condemnation
proceeding involving a portion of the Property greater than $100,000, then each
of Buyer and Seller shall have the right, at its election, to terminate this
Agreement by delivery of notice of termination to the other on or before the
scheduled Closing Date, whereupon Buyer and Seller shall instruct Escrow Holder
to return the Second Deposit to Buyer, and each shall be released from all
obligations hereunder pertaining to the Property (other than the indemnification
obligations under Section 4(i) and 13(b)). If this Agreement is not terminated,
Seller and Buyer agree that Seller shall assign to Buyer any proceeds of
insurance or condemnation awards and the Purchase Price shall be reduced by the
amount of Seller's deductible (except the portion applied to repairs). Any
repairs made by Seller pursuant to this Section 10 shall be first paid out of
insurance proceeds and the deductible and made as promptly as reasonably
possible, and the Closing shall be extended until the repairs are substantially
completed unless Buyer elects to close escrow prior to such completion of
repairs.

11.      OPERATION PENDING CLOSING.

Prior to the Closing, Seller shall operate and maintain the Property, or cause
the Property to be operated and maintained, in a businesslike manner and
substantially in accordance with Seller's past practices with respect to the
Property. Without the prior written consent of Buyer, which will not be
unreasonably withheld or delayed, Seller will not subject the Property to any
leases, lease amendments, contracts, liens, encumbrances, covenants, conditions,
easements, rights of way or similar matters after the Effective Date which could
affect the Property following the Close of Escrow. If upon a request from
Seller, Buyer refuses to give its consent, it must deliver to Seller a written
explanation of its reasons therefore. If Buyer does not approve Seller's request
within three (3) business days, the requested matter shall be deemed to have
been approved by Buyer.

12.      BUYER CONTACTS WITH THIRD PARTIES.

Buyer shall not have contact with any with any existing tenant, vendor or
governmental authority with respect to the Property without providing Seller
prior written notice of such proposed contact and unless Seller is given at
least one (1) business day's prior written or e-mail notice, and a
representative of Seller is given the opportunity to be present. Buyer shall
copy Seller on all correspondence with tenants, occupants and governmental
authorities. Buyer shall not enter into any agreement or commitment that is
binding on the Property until after the Closing and Buyer shall have no power or
authority to bind Seller or the Property prior to Closing.

13.      MISCELLANEOUS.

         (a) Notices. Except as otherwise specifically provided in this
Agreement, any notice, consent, request or approval required or permitted to be
given under this Agreement shall be in writing and shall be deemed to have been
given upon: (i) hand delivery; (ii) one business day after being deposited with
Federal Express or another reliable overnight courier service; (iii)
transmission by facsimile telecopy during regular business hours at the

                                       18
<PAGE>

receiver's location, with facsimile transmittal confirmation and with a
confirming copy sent the same business day by United States mail; or (iv) upon
receipt after being deposited in the United States mail, registered or certified
mail, postage prepaid, return receipt required and addressed as follows:

                  If to Seller:       SPI Willow Pass, L.P.
                                      c/o SPI Holdings, LLC
                                      650 California Street, Suite 1288
                                      San Francisco, CA  94108
                                      Attention: Gary Miranda and Gil Berkeley
                                      Telephone: 415-288-7900
                                      Facsimile: 415-391-9142

                  If to Buyer:        Mr. Mark D. Zimmerman
                                      c/o Montgomery Realty Group, Inc.
                                      400 Oyster Point Boulevard, Suite 415
                                      South San Francisco, CA  94080
                                      Telephone: 650-266-8080
                                      Facsimile:  650-266-8089

                  With a copy to:     James T. Graeb, Esq.
                                      Montgomery Realty Group, Inc.
                                      400 Oyster Point Boulevard, Suite 415
                                      South San Francisco, CA  94080
                                      Telephone: 650-266-8080
                                      Facsimile: 650-266-8089

or such other address as either party may from time to time specify by notice
hereunder to the other.

         (b) Brokers/Intermediaries. Seller represents that Seller has not had
any conversations or dealings with any broker, finder or other intermediary in
connection with the Property other than TRI Commercial Real Estate Services,
Inc. (hereinafter the "Seller's Broker"). Buyer represents that Buyer has not
had any conversations or dealings with any broker, finder or other intermediary
in connection with the Property other than Seller's Broker. If the Closing
occurs, Seller shall pay a real estate commission to Seller's Broker pursuant to
separate agreement. Seller agrees to defend, indemnify and hold harmless Buyer
from and against any and all liabilities, claims, demands, damages, or costs of
any kind (including attorneys' fees, costs and expenses) arising from or
connected with any broker's or finder's fee or commission or charge (hereinafter
the "Broker Claims") claimed to be due by Seller's Broker, or any other person
arising from or by reason of Seller's conduct with respect to this transaction.
Buyer and Seller each agree to defend, indemnify and hold the other harmless
from and against any and all Broker Claims claimed to be due any other broker
arising from or by reason of the indemnifying party's involvement in this
transaction. This Section 13(b) shall survive the close of Escrow.

                                       19
<PAGE>

         (c) Counterparts. This Agreement may be executed in any number of
counterparts and each counterpart shall be deemed to be an original document.
Delivery of the executed Agreement may be accomplished by facsimile
transmission, and if so, the facsimile copy shall be deemed an executed original
counterpart of the Agreement. All executed counterparts together shall
constitute one and the same document, and any signature pages, including
facsimile copies thereof, may be assembled to form a single original document.

         (d) Successors and Assigns. This Agreement shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors,
heirs, administrators and assigns. Except for an assignment by Mark D. Zimmerman
as Exchange Accommodator to Montgomery Realty Group, Inc., Buyer shall not
assign this Agreement or its rights hereunder to any individual or entity
without the prior consent of Seller, which consent may be denied in its sole
discretion; provided, however, that Seller's consent shall not be required for
Buyer's assignment of its rights and obligations under this Agreement to one or
more Special Purpose Entities (hereinafter "SPE") controlling, controlled by or
under common control with Buyer, so long as such assignment will not delay,
impair or inhibit the Closing or the assumption of the Existing Loan.

         (e) Amendments. Except as otherwise provided herein, this Agreement may
be amended or modified only by an instrument executed by the party to be bound.

         (f) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.

         (g) Integration of Prior Agreements. This Agreement and the exhibits
hereto constitute the entire agreement between the parties and supersede all
prior negotiations, correspondence, agreements and understandings between the
parties relating to the subject matter hereof.

         (h) Enforcement. In the event a dispute arises concerning the
performance, meaning or interpretation of any provision of this Agreement, the
defaulting party or the party not prevailing in such dispute (as the court shall
determine) shall pay any and all reasonable costs and expenses incurred by the
other party in enforcing or establishing its rights hereunder, including,
without limitation, arbitration and court costs and attorneys' and experts'
fees. Any such attorneys' fees and other expenses incurred by either party in
enforcing a judgment in its favor under this Agreement shall be recoverable
separately from and in addition to any other amount included in such judgment,
and such attorneys' fees obligation is intended to be severable from the other
provisions of this Agreement and to survive and not be merged into any such
judgment.

         (i) Confidentiality and Return of Documents. Except as required by law,
neither party shall disclose any proprietary or confidential information
furnished by the other party (including any material related to such party's

                                       20
<PAGE>

internal affairs or composition) or, unless authorized by the other party, the
terms of this Agreement, except to its partners, attorneys, accountants,
consultants, agents and prospective lenders as necessary in connection with the
consummation of this transaction, and then only if similar confidential
treatment is required on the part of such parties. If this Agreement is
terminated, Buyer shall return to Seller all documents delivered by Seller to
Buyer in connection with this Agreement. This Section 13(i) shall survive the
close of Escrow or termination of this Agreement.

         (j) Time of the Essence; Dates. Time is of the essence of this
Agreement. If any of the dates specified in this Agreement shall fall on a
Saturday, a Sunday, or a holiday, such date shall be deemed to have expired at
3:00 p.m. (Pacific Time) on the next business day, notwithstanding anything to
the contrary herein.

         (k) Severability. If any provision of this Agreement, or the
application thereof to any person, place or circumstance, shall be held by a
court of competent jurisdiction to be invalid, unenforceable or void, the
remainder of this Agreement and such provisions as applied to other persons,
places and circumstances shall remain in full force and effect.

         (l) 1031 Exchange. Buyer and Seller shall each, upon request of the
other party, cooperate in effecting one or more tax-deferred exchanges under
Internal Revenue Code, Section 1031 (each, hereinafter an "Exchange") in
connection with the transaction contemplated by this Agreement, including the
execution of escrow instructions and other documents therefor; provided that the
requesting party will pay any and all additional costs or expenses connected
with such exchange; provided that the requested party shall not be required to
take title to other real property in connection with the exchange; and provided
that the Exchange will not delay the Closing hereunder. Neither party shall be
responsible to the other with respect to whether this transaction will qualify
an Exchange, nor shall the Closing be contingent upon the transaction qualifying
as an Exchange. Buyer and/or Seller may assign its rights in, and delegate its
duties under this Agreement (in part or in whole), as well as transfer its
interest in the Property, to an exchange intermediary, and Buyer and/or Seller
may add such intermediary as an additional party to the escrow; provided that
Buyer and/or Seller, as applicable, shall remain primarily liable under this
Agreement.

         (m) Survival of Warranties; Limitation of Claims.

                  (i) No action for breach of Seller's representations and
warranties contained in this Agreement and in any document executed by Seller
pursuant to this Agreement shall be actionable unless filed within one (1) year
following the Closing Date (hereinafter the "Limitation Period"). After Closing,
if Buyer learns of a breach of a representation or warranty, Buyer shall give
notice to Seller of such breach and if Seller shall have the following cure
period to cure such breach: within thirty (30) days following the giving of such
notice, or, if such breach cannot reasonably be cured within thirty (30) days,
an additional reasonable time period not to exceed ninety (90) days, so long as
such cure has been commenced within such thirty (30) days and has been
diligently pursued. If Seller fails to cure such breach within such cure period,
Buyer's sole remedy shall be an action at law for damages as a consequence
thereof, which must be commenced, if at all, within ninety (90) days after the

                                       21
<PAGE>

last day Seller was entitled to cure such breach hereunder or the day Seller
provided Buyer with notice of termination of such cure. Neither party shall have
the right to bring a cause of action for a breach of a representation or
warranty unless the damage to such party on account of such breach (individually
or when combined with damages from other breaches) equals or exceeds Twenty-Five
Thousand Dollars ($25,000), in which event the party in breach shall be
responsible for the full amount of damages, subject to the limitation below. The
aggregate liability of Seller to Buyer and all those claiming by or through
Buyer for claims, demands, damages, expenses (including attorneys' fees), suits,
awards, judgments and liabilities asserted, awarded or otherwise recovered
against Seller in connection with this Agreement, any document executed by
Seller in connection with this Agreement or the Property, including claims for
breaches of Seller's representations or warranties, shall not exceed Five
Hundred Thousand Dollars ($500,000.00).

                  (ii) Subject to clause (i) above and excluding any claim of
fraud or willful misconduct by Seller, any right of Buyer to bring a claim or
suit under this Agreement or any document executed by Seller pursuant to this
Agreement shall expire and shall be of no further force or effect after the
Limitation Period. The Limitation Period referred to herein shall apply to known
as well as unknown breaches of this Agreement or any such document or other
bases for claims that may be brought under this Agreement or any such document.

(iii) The provisions of this Section 13(m) shall survive the Closing.

                            [SIGNATURE PAGE FOLLOWS]

                                       22
<PAGE>

                    [SIGNATURE PAGE TO 1675 WILLOW PASS ROAD
                          PURCHASE AND SALE AGREEMENT]

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

                                SELLER:

                                SPI WILLOW PASS, L.P.,
                                a California limited partnership

                                By:  Prism Capital Corporation, a Delaware
                                corporation, its General Partner

                                By: /s/ Dennis J. Wong
                                   -----------------------------------------
                                   Dennis J. Wong, President

                                BUYER:

                                MARK D. ZIMMERMAN, AS QUALIFIED EXCHANGE
                                ACCOMMODATOR FOR MONTGOMERY REALTY GROUP, INC.,
                                a Nevada corporation.

                                /s/ Mark D. Zimmerman
                                --------------------------------------------
                                Mark D. Zimmerman, As Qualified Exchange
                                Accommodator for Montgomery Realty Group, Inc.

                                MONTOMERY REALTY GROUP, INC.
                                a Nevada corporation

                                By:  /s/ Dinesh Maniar
                                   ------------------------------------------
                                   Dinesh Maniar
                                   Its: President

                                       23
<PAGE>

                                LIST OF EXHIBITS

           Exhibit A         Description of Real Property
           Exhibit B         Assignment of Intangible Property
           Exhibit C         Assignment and Assumption of Leases
           Exhibit D         List of Due Diligence Documents
           Exhibit E         Form of Estoppel Certificate
           Exhibit F         Form of Notice to Tenants
           Exhibit G         Certificate  of Transferor Other Than an Individual
                             (FIRPTA Affidavit)

<PAGE>

                                    EXHIBIT A

                                  REAL PROPERTY
                                LEGAL DESCRIPTION

         Real property in the City of Concord, County of Contra Costa, State of
California, described as follows: PARCEL ONE:

PORTION OF THE RANCHO MONTE DEL DIABLO, DESCRIBED AS FOLLOWS:

COMMENCING IN THE CENTER LINE OF MARKET STREET; AT THE NORTHEAST LINE OF THE
PARCEL OF LAND DESCRIBED IN THE DEED TO LOUIS A OLIVEIRA, ET UX, RECORDED
FEBRUARY 6, 1947, BOOK 954, OFFICIAL RECORDS, PAGE 335; THENCE FROM SAID POINT
OF COMMENCEMENT, SOUTH 66 DEGREES 36' 30" EAST, ALONG SAID NORTHEAST LINE, 0.19
OF A FOOT TO THE ACTUAL POINT OF BEGINNING OF THE HEREIN DESCRIBED PARCEL OF
LAND; THENCE FROM SAID POINT OF BEGINNING, ALONG THE EXTERIOR LINE OF THE PARCEL
OF LAND DESCRIBED IN THE DEED TO ERICKSON, PHILLIPS & WEISBERG, RECORDED JUNE
15, 1956, BOOK 2788, OFFICIAL RECORDS, PAGE 384, AS FOLLOWS:

SOUTH 30 DEGREES 44' 30" EAST, 436.44 FEET; SOUTH 59 DEGREES 15' 30" WEST, 280
FEET AND NORTH 30 DEGREES 44' 30" WEST, 234.04 FEET TO THE CENTER LINE OF SAID
MARKET STREET; THENCE SOUTH 23 DEGREES 22' WEST, ALONG SAID CENTER LINE, 169.11
FEET TO THE SOUTHWEST LINE OF SAID OLIVEIRA PARCEL, 954 OR 335; THENCE SOUTH 66
DEGREES 38' EAST, ALONG SAID SOUTHWEST LINE, 197.38 FEET; THENCE NORTH 59
DEGREES 15' 30" EAST, 281.29 FEET; THENCE SOUTH 30 DEGREES 44' 30" EAST, 150
FEET; THENCE SOUTH 59 DEGREES 15' 30" WEST, 172.74 FEET TO THE SOUTHWEST LINE OF
SAID OLIVEIRA PARCEL, 954 OR 335; THENCE SOUTH 66 DEGREES 38' EAST, ALONG SAID
SOUTHWEST LINE, 250.58 FEET TO THE NORTHWEST LINE OF WILLOW PASS ROAD; THENCE
NORTH 59 DEGREES 15' 30" EAST, ALONG SAID NORTHWEST LINE, 240.92 FEET TO THE
MOST SOUTHERLY CORNER OF THE PARCEL OF LAND DESCRIBED IN THE DEED TO ARTHUR
WEISBERG, ET UX, RECORDED JUNE 15, 1956, BOOK 2788, OFFICIAL RECORDS, PAGE 383;
THENCE ALONG THE EXTERIOR BOUNDARY LINES OF SAID WEISBERG PARCEL, 2788 OR 383,
AS FOLLOWS: NORTH 30 DEGREES 44' 30" WEST, 313 FEET; NORTH 59 DEGREES 15' 30"
EAST, 167.45 FEET AND SOUTH 30 DEGREES 44' 30" EAST, 313 FEET TO THE NORTHWEST
LINE OF SAID WILLOW PASS ROAD; THENCE NORTH 59 DEGREES 15' 30" EAST, ALONG SAID

<PAGE>

NORTHWEST LINE, 226.30 FEET TO A POINT WHICH BEARS SOUTH 66 DEGREES 36' 30" EAST
FROM THE POINT OF BEGINNING; THENCE NORTH 66 DEGREES 36' 30" WEST, 1005 FEET TO
THE POINT OF BEGINNING

PARCEL TWO:

THE RECIPROCAL PARKING RIGHTS AND EASEMENTS IN COMMON CREATED AS AN APPURTENANCE
TO PARCEL ONE ABOVE, BY THE FOLLOWING INSTRUMENTS:

(A) GRANT OF EASEMENTS AND PARKING AGREEMENT BY CONCORD INVESTMENTS, A
CORPORATION, ARTHUR WEISBERG, ET UX, AND ERICKSON, PHILLIPS AND WEISBERG, A
CORPORATION, DATED MAY 23, 1956 AND RECORDED JUNE 15, 1956, BOOK 2788, OFFICIAL
RECORDS, PAGE 386.

(B) AGREEMENT NO. 2 BY CONCORD INVESTMENTS, A CORPORATION, ARTHUR WEISBERG, ET
UX, AND ERICKSON, PHILLIPS AND WEISBERG, A CORPORATION, DATED MAY 23, 1956 AND
RECORDED JUNE 15, 1956, BOOK 2788, OFFICIAL RECORDS, PAGE 408.

(C) AGREEMENT NO. 3 BY CONCORD INVESTMENTS, A CORPORATION, ARTHUR WEISBERG, ET
UX, AND ERICKSON, PHILLIPS AND WEISBERG, A CORPORATION, DATED JUNE 14, 1956 AND
RECORDED JUNE 15, 1956, BOOK 2788, OFFICIAL RECORDS, PAGE 434.

(D) 1996 AMENDMENT TO GRANT OF EASEMENTS AND PARKING AGREEMENT DATED MAY 1, 1996
AND RECORDED FEBRUARY 3, 1997 AS INSTRUMENT NO. 97-018899 OF OFFICIAL RECORDS.
APN: 126-281-009-4 and 126-281-010-2 and 126-281-012-8

<PAGE>

                                    EXHIBIT B

                        ASSIGNMENT OF INTANGIBLE PROPERTY

         THIS ASSIGNMENT is made and entered into as of ________________, 2006
by SPI WILLOW PASS, L.P., a California limited partnership ("Assignor"), and
___________________ ("Assignee").

         FOR GOOD AND VALUABLE CONSIDERATION, the receipt of which is hereby
acknowledged, effective as of the Effective Date (as defined below), Assignor
assigns and transfers unto Assignee all of its right, title, claim and interest
in and under: (A)all warranties and guaranties made by or received from any
third party with respect to any building, building component, structure,
fixture, machinery, equipment, or material situated on, contained in any
building or other improvement situated on, or comprising a part of any building
or other improvement situated on, any part of that certain real property at 1675
Willow Pass Road, Concord, California; (B) the HVAC Contract with ACCO
Engineered Systems; and (C) any other Intangible Property (as defined in that
certain Purchase and Sale Agreement dated as of ________________, 2006, between
Assignor and Assignee (the "Agreement")).

         Effective as of the Effective Date, Assignee assumes all of the owner's
obligations under the HVAC Contract with ACCO Engineered Systems to be performed
from and after the Effective Date (as defined below).

For purposes of this Assignment, the "Effective Date" shall be the date of the
Closing (as defined in the Agreement).

         IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment
as of the day and year first above written.

                       ASSIGNOR:    SPI WILLOW PASS, L.P.,
                                    a California limited partnership

                                    By:  Prism Capital Corporation, a Delaware
                                    corporation, its General Partner

                                    By: ____________________________
                                       Dennis J. Wong, President

                       ASSIGNEE:    ________________________________,
                                    a ______________________________

                                    By:  ___________________________

<PAGE>

                                    EXHIBIT C

                       ASSIGNMENT AND ASSUMPTION OF LEASES

         THIS ASSIGNMENT is made this ______ day of _____________, 2006, between
SPI WILLOW PASS, L.P., a California limited partnership ("Assignor"), and
___________________________, a ____________________ ("Assignee"), who agree as
follows:

         1. Assignment and Assumption. For good and valuable consideration
including, without limitation, the terms and conditions of that certain Purchase
and Sale Agreement, dated ______________, 2006, between Assignor and Assignee
(the "Purchase Agreement"), effective as of the Effective Date (as hereinafter
defined), (a) Assignor assigns to Assignee all right, title and interest of
lessor in the Leases described as (i) the lease dated October 3, 1997 with
Burlington Coat Factory Warehouse of Concord, Inc., and (ii) the lease dated
July 25, 2005 with Jo-Ann Stores, Inc. ("Leases"), and (b) Assignee accepts the
assignment and assumes and agrees to perform, as a direct obligation to the
parties to the Leases all the obligations and liabilities of Assignor as lessor
under the Leases to be performed from and after the Effective Date, together
with any and all obligations with respect to the repayment or credit for any
security deposits under such Leases to the extent transferred to Assignee under
the Purchase Agreement. Notwithstanding the foregoing, Assignor shall retain all
rights to its prorata share of any rent, operating cost pass-throughs and other
additional rent or charges payable under the Leases for periods prior to the
Effective Date, as provided in the Purchase Agreement.

         2. Effective Date. This Assignment shall be deemed effective on the
date of Closing, as defined in the Purchase Agreement ("Effective Date").

         3. Attorneys' Fees. In any action between the parties to enforce any of
the terms or provisions of this Assignment, the prevailing party in the action
shall be entitled to recover from the non-prevailing party, in addition to
damages, injunctive relief or other relief, its reasonable costs and expenses,
including, without limitation, costs and reasonable attorneys' fees, as the
court shall determine. Any such attorneys' fees and other expenses incurred by
either party in enforcing a judgment in its favor under this Assignment shall be
recoverable separately from and in addition to any other amount included in such
judgment, and such attorneys' fees obligation is intended to be severable from
the other provisions of this Assignment and to survive and not be merged into
any such judgment.

         4. Successors and Assigns. This Assignment shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns.

         5. Severability. If any provision of this Assignment shall be held
invalid or unenforceable for any reason and to any extent, the remainder of this
Assignment shall not be affected, but shall be enforced to the greatest extent
permitted by law.

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

<PAGE>

         IN WITNESS WHEREOF, this Assignment has been executed as of the date
first above written.

                       ASSIGNEE:    SPI WILLOW PASS, L.P.,
                                    a California limited partnership

                                    By:  Prism Capital Corporation, a Delaware
                                    corporation, its General Partner

                                    By:____________________________
                                       Dennis J. Wong, President

                       ASSIGNOR:    ________________________________,
                                    a ______________________________

                                    By:  ___________________________

<PAGE>

                                    EXHIBIT D

                         LIST OF DUE DILIGENCE DOCUMENTS

         o    Burlington Coat Factory Lease dated October 3, 1997
         o    Lease with Jo-Ann Stores, Inc., dated July 25, 2005
         o    Loan Documents: Promissory Note, Deed of Trust, Loan Agreement,
              Assignment of Leases and Rents, Guaranty of Recourse Obligations,
              Environmental Indemnity, Clearing House Agreement, and Capital
              Expenditure Reserve Funds letter
         o    ALTA Survey (5-9-2005) - By Tronoff & Associates
         o    Phase I Environmental Report (10-12-2005) - by LandAmerica
         o    Property Condition Report (12-9-2005) - by LandAmerica
         o    Limited Asbestos Survey (5-9-2005) - by AEI Consultants
         o    Visual Asbestos Post-Abatement Survey (8-26-2005) - by AEI
              Consultants
         o    Asbestos Containing Building Materials - Operations & Maintenance
              Program (10-14-2005) - by LandAmerica
         o    PML (Seismic) Report (10-11-2005) - by LandAmerica
         o    HVAC Contract - ACCO engineered systems
         o    Copies of Shopping Center's CC&Rs
         o    By-Laws of Concord Shopping Center Association & By-Laws of CSC
              Parking Maintenance Association
         o    1996 Grant of Easement and Parking Agreement
         o    Copies of real property taxes (2005 - 2006)
         o    Property insurance certificate

<PAGE>

         o    Certificate of Occupancy - JoAnns Fabrics (2-16-06)
         o    Certificate of Occupancy - Fitness for Less (Burlington's
              predecessor) (7-21-93)
         o    JoAnn's Commencement Letter
         o    2004 CSC Maintenance and Concord Shopping Center Association
              financial statement
         o    2005 CSC Maintenance and Concord Shopping Center Association
              financial statements
         o    2006 CSC Maintenance and Concord Shopping Center Association
              Budget.
         o    2006 Property Budget - dated November 9, 2005
         o    YTD Property Financials (March 2006)
         o    Construction Drawings - JoAnns TI's (Specs, Arch, Elec, MP)
         o    Construction Drawings - Shell "As Builts" (Plans Conc C-1, Conc
              S-1, Plans Concord 1 - Concord 6)

<PAGE>

                                    EXHIBIT E

                          FORM OF ESTOPPEL CERTIFICATE

                           Tenant Estoppel Certificate

To:      __________________________
         __________________________

         (together with any assignees, the "Buyer")

Re:      1675 Willow Pass Road
         Concord

         The undersigned, as Tenant of approximately ________ square feet of
space (the "Premises") under that certain Lease dated _______________ initially
made with __________________________, and currently held by ____________ as
Landlord (the "Lease"), hereby certifies as follows:

         (a) Attached hereto is a true, correct and complete copy of the Lease
and amendments thereto, if any;

         (b) The Lease is in full force and effect and the interest of the
undersigned in the Lease has not been assigned or encumbered;

         (c) The Lease represents the entire agreement between the parties as to
said leasing, and that there are no other agreements, written or oral, which
affect the occupancy of the Premises by the undersigned;

         (d) The expiration date of the term of the Lease is ______________,
including any presently exercised option or renewal term, and that the
undersigned has no rights to renew, extend or cancel the Lease or to lease
additional space in the Premises or the Building, except as expressly set forth
in the Lease;

         (e) The undersigned has no option or preferential right to purchase all
or any part of the Premises (or the land or Building of which the Premises are a
part), and has no right or interest with respect to the Premises or the Building
other than as Tenant under the Lease;

         (f) All conditions of the Lease to be performed by Landlord and
necessary to the enforceability of the Lease have been satisfied. On this date
there are no existing defenses, offsets, claims or credits which the undersigned
has against the enforcement of the Lease except for prepaid rent through
__________________ (not to exceed one month);

<PAGE>

         (g) To Tenant's knowledge, there are no defaults by the undersigned or
Landlord under the Lease, and no event has occurred or situation exists that
would, with the passage of time, constitute a default under the Lease;

         Tenant acknowledges the right of the Buyer to rely upon the
certifications and agreements in this Certificate in purchasing the Property
from Landlord.

         EXECUTED this _____ day of _________________, 2006.

                                            [______________________,
                                            a __________________]

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

<PAGE>

                                    EXHIBIT F

                           FORM OF NOTICE TO TENANT(S)

_________, 2006

VIA FACSIMILE AND U.S. MAIL

[TENANT]
___________________________________
___________________________________
___________________________________
___________________________________

                     Re: 1675 Willow Pass Road, Concord

Dear __________:

         This letter is to inform you that the above-referenced property has
been sold by the undersigned to _____________________ (the "Buyer"). In
connection therewith, the Buyer has become the "Lessor" under that certain lease
dated _________, by and between _______________________, as initial lessor, and
_______________________, as initial lessee (the "Lease"). In order to receive
credit for payments under the Lease, from and after the date hereof, all
payments shall be made in accordance with the directions set forth in this
letter.

         You are authorized and directed that, commencing as of the date hereof,
each payment of rent and other charges first accruing from and after the date
hereof and owed by you under the Lease are to be made in the form of a check
made payable to the order of _________________, and delivered to the following
address: ________________________ [may be lock box arrangement].

         Your security deposit, if applicable, has been transferred to Buyer.

                                                SPI WILLOW PASS, L.P.,
                                                a California limited partnership

                                                By:  Prism Capital Corporation,
                                                a Delaware corporation,
                                                its General Partner

                                                By: ____________________________
                                                    Dennis J. Wong, President

<PAGE>

WillowPass PSA 081006

                                    EXHIBIT G

                            CERTIFICATE OF TRANSFEROR
                            OTHER THAN AN INDIVIDUAL
                               (FIRPTA Affidavit)

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S.
real property interest must withhold tax if the transferor is a foreign person.
To inform _______________________________________, the transferee of certain
real property located 1675 Willow Pass Road, Concord, California that
withholding of tax is not required upon the disposition of such U.S. real
property interest by the undersigned ("Transferor"), the undersigned certifies
the following on behalf of Transferor:

         I. Transferor is not a foreign corporation, foreign partnership,
foreign trust, or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations);

         II. Transferor's U.S. employer identification number is __________; and

         III. Transferor's office address is 650 California Street, Suite 1288,
San Francisco, CA 94108.

Transferor understands that this certification may be disclosed to the Internal
Revenue Service by the transferee and that any false statement contained herein
could be punished by fine, imprisonment, or both.

Under penalty of perjury, I declare that I have examined this certificate and to
the best of my knowledge and belief it is true, correct and complete, and I
further declare that I have authority to sign this document on behalf of
Transferor.

Dated: __________, 2006.

SPI WILLOW PASS, L.P.,
a California limited partnership

By:  Prism Capital Corporation, a Delaware corporation,
its General Partner

By: ____________________________
    Dennis J. Wong, President

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