Document:

Exhibit 4.2

      THIS WARRANT AND THE OTHER SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THEY HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND
      NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
      THEREOF. THE WARRANT REPRESENTED BY THIS INSTRUMENT AND THE OTHER
      SECURITIES ISSUABLE UPON EXERCISE THEREOF MAY NOT BE SOLD, TRANSFERRED, OR
      OTHERWISE DISPOSED OF BY THE HOLDER EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT FILED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      WITH RESPECT THERETO OR IN ACCORDANCE WITH AN OPINION OF COUNSEL IN FORM
      AND SUBSTANCE SATISFACTORY TO THE ISSUER THAN AN EXEMPTION FROM SUCH
      REGISTRATION IS AVAILABLE.

                            WARRANT (BRIDGE WARRANT)

           To Purchase ________ of Common Stock of Ambient Corporation
No.: ___________                                                  April __, 2002

      1. Number of Shares; Exercise Price; Term. This certifies that in
connection for $1.00 and other good and valuable consideration, including but
not limited to the agreement of ___________ (the "Holder") to make certain loans
to Ambient Corporation (the "Company"), the receipt and sufficiency of which are
hereby acknowledged, the Holder or its assigns is entitled, upon the terms and
subject to the conditions hereinafter set forth at any time from the date hereof
and until at or prior to 11:59 p.m., Eastern Standard Time, on a date which is
three (3) years from the date hereof, but not thereafter, to acquire from the
Company, in whole or in part, from time to time, up to ____________________
fully-paid shares of the Company's common stock, par value $0.001 per share
("Common Stock" or "Shares") at a per-share purchase price of $0.40 per Share
(the "Exercise Price"). Such number of Shares and Exercise Price are subject to
adjustment as provided herein, and all references to "Common Stock" and
"Exercise Price" herein shall be deemed to include any such adjustment or series
of adjustments.

      2. Exercise of Warrant. The purchase rights represented by this Warrant
are exercisable by Holder, in whole or in part, at any time, or from time to
time, subsequent to the date hereof, by the surrender of this Warrant and the
Notice of Exercise annexed hereto, all duly completed and executed on behalf of
Holder, at the office of the Company in Brookline, Massachusetts (or such other
office or agency of the Company as it may designate by notice in writing to
Holder at the address of Holder appearing on the books of the Company). Payment
of the Exercise Price for the Shares thereby purchased shall be made by cash,
certified or cashier's check or wire transfer payable to the order of the
Company, at 10:00 a.m., Eastern Standard Time, on the day following surrender of
this Warrant and the Notice of Exercise, in an amount equal to the purchase
price of the Shares thereby purchased. Thereupon Holder, as the holder of this
Warrant, shall be entitled to receive from the Company a stock certificate in
proper form representing the number of Shares so purchased, and a new Warrant in
substantially identical form and dated as of such exercise for the purchase of
that number of Shares equal to the difference, if any, between the number of
Shares subject hereto and the number of Shares as to which this Warrant is so
exercised.

<PAGE>

      3. Issuance of Shares. Certificates for Shares purchased hereunder shall
be delivered to Holder promptly after the date on which this Warrant shall have
been exercised in accordance with the terms hereof. The Company hereby
represents and warrants that all Shares that may be issued upon the exercise of
this Warrant will, upon such exercise, be duly and validly authorized and
issued, fully paid and nonassessable and free from all taxes, liens and charges
in respect of the issuance thereof (other than liens or charges created by or
imposed upon Holder as the holder of the Warrant or taxes in respect of any
transfer occurring contemporaneously or otherwise specified herein). The Company
agrees that the Shares so issued shall be and shall for all purposes be deemed
to have been issued to Holder as the record owner of such Shares as of the close
of business on the date on which this Warrant shall have been exercised or
converted in accordance with the terms hereof.

      4. Representations and Warranties of the Holder. The Holder (i)
represents, warrants, covenants and agrees that the Warrant and the underlying
Shares are being acquired by the Holder for the Holder's own account, for
investment purposes only, and not with a view to any public distribution thereof
or with any present intention of so distributing all or any part of the Warrant
or the underlying Shares; (ii) understands (x) that if it should thereafter
decide to dispose of such Warrant or the underlying Shares (which it does not
contemplate at this time) it may do so only in compliance with the Securities
Act of 1933, as amended, (the "Securities Act"), including any exemption
therefrom, (y) this Warrant and the underlying Shares are not registered under
the Securities Act; and (iii) acknowledges that, as of the date hereof, it has
been given a full opportunity to ask questions of and to receive answers from
the Company concerning this Warrant and the underlying Shares and the business
of the Company and to obtain such information as it desired in order to evaluate
the acquisition of this Warrant and the underlying Shares, and all questions
have been answered to its full satisfaction.

      5. No Fractional Shares or Scrip. No fractional Shares or scrip
representing fractional Shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional Share to which Holder as the holder would
otherwise be entitled, Holder shall be entitled, at its option, to receive
either:

      (a) a cash payment equal to the excess of fair market value for such
fractional Share above the Exercise Price for such fractional share (as
determined in good faith by the Company); or

      (b) a whole Share if Holder tenders the Exercise Price for one whole
share.

      6. No Rights as Shareholder. This Warrant does not entitle Holder as a
holder hereof to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof.

      7. Charges, Taxes and Expenses. Certificates for Shares issued upon
exercise of this Warrant shall be issued in the name of Holder as the holder of
this Warrant. Issuance of certificates for Shares upon the exercise of this
Warrant shall be made without charge to Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificates, all of
which taxes and expenses shall be paid by the Company.

      8. No Transfer. This Warrant and any rights hereunder are not transferable
by Holder as the holder hereof, in whole or in part, without the prior written
consent of the Company.

                                       2

<PAGE>

      9. Exchange and Registry of Warrant. This Warrant is exchangeable, upon
the surrender hereof by Holder as the registered holder at the above-mentioned
office or agency of the Company, for a new Warrant on substantially identical
form and dated as of such exchange. The Company shall maintain at the
above-mentioned office or agency a registry showing the name and address of
Holder as the registered holder of this Warrant. This Warrant may be surrendered
for exchange or exercise, in accordance with its terms, at the office of the
Company, and the Company shall be entitled to rely in all respects, prior to
written notice to the contrary, upon such registry.

      10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in the case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and upon
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of this Warrant, if mutilated, the Company will
make and deliver a new Warrant of like tenor and dated as of such cancellation
and reissuance, in lieu of this Warrant.

      11. Reservation of Common Stock. The Company will at all times reserve and
keep available, solely for issuance, sale and delivery upon the exercise of this
Warrant, such number of Shares equal to the number of Shares purchasable upon
the exercise of this Warrant. All such Shares shall be duly authorized and, when
issued upon exercise of this Warrant in accordance with the terms hereof, will
be validly issued and fully paid and nonassessable, with no liability on the
part of Holder. Such Shares will not be subject to any preemptive rights.

      12. Listing on Securities Exchanges, Etc. The Company will use its best
efforts to maintain the listing or inclusion of all Shares issuable or issued
from time to time upon exercise of this Warrant on each securities exchange or
market or trading system on which any shares of Common Stock are then or at any
time thereafter listed or traded, but only to the extent and for such period of
time as such shares of Common Stock are so listed or included.

      13. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday or a Sunday or shall be a legal holiday, then such
action may be taken or such right may be exercised on the next succeeding day
not a Saturday, Sunday or legal holiday.

      14. Adjustments and Termination of Rights. The purchase price per Share
and the number of Shares purchasable hereunder are subject to adjustment from
time to time as follows:

      (a) Merger or Consolidation. If at any time there shall be a merger or a
consolidation of the Company with or into another corporation when the Company
is not the surviving corporation, then, as part of such merger or consolidation,
lawful provision shall be made so that Holder as the holder of this Warrant
shall thereafter be entitled to receive upon exercise of this Warrant, during
the period specified herein and upon payment of the aggregate Exercise Price
then in effect, the number of shares of stock or other securities or property
(including cash) of the successor corporation resulting from such merger or
consolidation, to which Holder as the holder of the Shares deliverable upon
exercise of this Warrant would have been entitled in such merger or
consolidation if this Warrant had been exercised immediately before such merger
or consolidation. In any such case, appropriate adjustment shall be made in the
application of the provisions of this Warrant with respect to the rights and
interests of Holder as the holder of this Warrant after the merger or
consolidation. This provision shall apply to successive mergers or
consolidations.

                                       3

<PAGE>

      (b) Reclassification, Recapitalization, etc. If the Company at any time
shall, by subdivision, combination or reclassification of securities,
recapitalization, automatic conversion, or other similar event affecting the
number or character of outstanding Shares, or otherwise, change any of the
securities as to which purchase rights under this Warrant exist into the same or
a different number of securities of any other class or classes, this Warrant
shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such subdivision, combination, reclassification or other
change.

      (c) Split, Subdivision or Combination of Shares. If the Company at any
time while this Warrant remains outstanding and unexpired shall split, subdivide
or combine the securities as to which purchase rights under this Warrant exist,
the Exercise Price shall be proportionately decreased in the case of a split or
subdivision or proportionately increased in the case of a combination or reverse
split.

      (d) Common Stock Dividends. If the Company at any time while this Warrant
is outstanding and unexpired shall pay a dividend with respect to Common Stock
payable in Shares, or make any other distribution with respect to Common Stock
in Shares, then the Exercise Price shall be adjusted, from and after the date of
determination of the shareholders entitled to receive such dividend or
distribution, to that price determined by multiplying the Exercise Price in
effect immediately prior to such date of determination by a fraction:

            (i) the numerator of which shall be the total number of Shares
      outstanding immediately prior to such dividend or distribution; and

            (ii) the denominator of which shall be the total number of Shares
      outstanding immediately after such dividend or distribution.

This paragraph shall apply only if and to the extent that, at the time of such
event, this Warrant is then exercisable for Common Stock.

      (e) Adjustment of Number of Shares. Upon each adjustment in the Exercise
Price pursuant to Section 14(c) or 14(d) hereof, the number of Shares
purchasable hereunder shall be adjusted, to the nearest whole Share, to the
product obtained by multiplying the number of Shares purchasable immediately
prior to such adjustment in the Exercise Price by a fraction:

                  (i) the numerator of which shall be the Exercise Price
            immediately prior to such adjustment; and

                  (ii) the denominator of which shall be the Exercise Price
            immediately after such adjustment.

      15. Notice of Adjustments; Notices. Whenever the Exercise Price or number
or type of securities issuable hereunder shall be adjusted pursuant to Section
14 hereof, the Company shall issue and provide to Holder as the holder of this
Warrant a certificate signed by an officer of the Company setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated and the Exercise
Price and number of Shares purchasable hereunder after giving effect to such
adjustment.

      16. Limited Transfer.

                                       4

<PAGE>

      (a) This Warrant may not be sold, transferred, assigned or hypothecated by
the Holder unless and until the capital stock for the purchase of which such
Warrant is exercisable shall then be covered by an effective and current
registration statement on Form SB-2 (or any other appropriate form) under the
Securities Act and all applicable state securities laws or the Company shall
have received an opinion of counsel (which counsel is reasonably acceptable to
the Company) to the effect that the proposed sale or transfer is exempt from the
registration provisions of the Securities Act and all applicable state
securities laws. The Company may treat the registered holder of record as the
Holder for all purposes. The Company shall permit any holder of this Warrant or
his duly authorized attorney, upon written request during ordinary business
hours, to inspect and copy or make extracts from its books showing the
registered holder of warrants.

      (b) Unless covered by an effective and current registration statement, the
Shares underlying this Warrant issued upon exercise of this Warrant shall be
subject to a stop transfer order and the certificate or certificates evidencing
such underlying Shares shall bear the following legend:

      "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION
      STATEMENT. ACCORDINGLY, SUCH SHARES MAY NOT BE OFFERED OR SOLD EXCEPT
      PURSUANT TO A REGISTRATION STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM
      REGISTRATION UNDER SUCH ACT."

      17. Registration Rights. The Holder shall have the right to register the
Shares issuable upon exercise of this Warrant (in the event the Warrant is
exercised to purchase Shares), as set forth in the Registration Rights Agreement
of even date herewith, which provisions are incorporated herein and made a part
hereof.

      18. Governing Law. This Warrant shall be binding upon any successors or
assigns of the Company. This Warrant shall constitute a contract under the laws
of Connecticut and for all purposes shall be construed in accordance with and
governed by the laws of said state, without giving effect to conflict of laws
principles.

      19. Amendments. This Warrant may be amended and the observance of any term
of this Warrant may be waived only with the written consent of the Company and
Holder as the holder hereof.

      20. Notice. All notices hereunder shall be in writing and shall be
effective:

      (a) on the day on which delivered if delivered personally or transmitted
by telex, telegram or telecopier with evidence of receipt;

      (b) one (1) business day after the date on which the same is delivered to
a nationally recognized overnight courier service with evidence of receipt; or

      (c) five (5) business days after the date on which the same is deposited,
postage prepaid, in the U.S. mail, sent by certified or registered mail, return
receipt requested, and addressed to the party to be notified at the address
indicated below for the Company, or at the address for Holder as the holder set
forth in the registry maintained by the Company pursuant to

                                       5
<PAGE>

Section 9, or at such other address and/or telecopy or telex number and/or to
the attention of such other person as the Company or Holder as the holder may
designate by ten (10) day advance written notice.

      21. Entire Agreement. This Warrant and the forms attached hereto contain
the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior and contemporaneous arrangements or undertakings
with respect thereto.

      IN WITNESS WHEREOF, Ambient Corporation has caused this Warrant to be
executed by its duly authorized officer.

Dated:   As of April __, 2002

AMBIENT CORPORATION                   NAME OF HOLDER:___________________________

                                      Address: _________________________________
By: ______________________________             _________________________________

      Its:________________________

                                        6
<PAGE>

                               NOTICE OF EXERCISE

TO:      AMBIENT CORPORATION

      1. The undersigned hereby elects to purchase ________________ shares (the
"Shares") of common stock, $.001 par value of Ambient Corporation (the
"Company") pursuant to the terms of the attached Warrant, and tenders herewith
payment of the purchase price and any transfer taxes payable pursuant to the
terms of the Warrant.

      2. The Shares to be received by the undersigned upon exercise of the
Warrant are being acquired for his, her or its own account, not as a nominee or
agent, and not with a view to resale or distribution of any part thereof, and
the undersigned has no present intention of selling, granting any participation
in, or otherwise distributing the same, except in compliance with applicable
federal and state securities laws. The undersigned further represents that he,
she or it does not have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participation to such person or to any
third person, with respect to the Shares. The undersigned believes he, she or it
has received all the information he, she or it considers necessary or
appropriate for deciding whether to purchase the Shares.

      3. The undersigned understands that the Shares are characterized as
"restricted securities" under the federal securities laws inasmuch as they are
being acquired from the Company in transactions not involving a public offering
and that under such laws and applicable regulations such securities may be
resold without registration under the Securities Act of 1933, as amended (the
"Act"), only in certain limited circumstances. In this connection, the
undersigned represents that he, she or it is familiar with Rule 144 of the Act,
as presently in effect, and understands the resale limitations imposed thereby
and by the Act.

      4. The undersigned understands the certificates evidencing the Shares may
bear one or all of the following legends:

            (a) "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY HAVE BEEN
      ACQUIRED SOLELY FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
      WITH, THE SALE OR DISTRIBUTION THEREOF. THEY MAY NOT BE SOLD, OFFERED FOR
      SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY
      APPLICABLE STATE SECURITIES LAWS."

            (b) Any legend required by applicable state law.

      5. Please issue a certificate or certificates representing said Shares in
the name of the undersigned.

<PAGE>

      6. Please issue a new Warrant for the unexercised portion of the attached
Warrant in the name of the undersigned.

                                      HOLDER:

                                      __________________________________________
                                      [Print Name]

                                      __________________________________________
                                      [Signature]

                                      Address:__________________________________
                                      __________________________________________
                                      __________________________________________

                                       2EXHIBIT 10.1

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED
                               PURCHASE AGREEMENT

                                     Between

                          METROPOLIS REALTY TRUST, INC.

                                 on the one hand

                                       and

                       JAMESTOWN 1290, L.P., as Purchaser

                                on the other hand

                             Dated as of May 7, 2002

<PAGE>

                  This   AMENDED   AND   RESTATED   PURCHASE   AGREEMENT   (this
"Agreement") is made as of the 7th day of May, 2002,  between  METROPOLIS REALTY
TRUST,  INC., a Maryland  corporation,  ("Owner"),  and JAMESTOWN 1290,  L.P., a
Delaware limited partnership ("Purchaser").

                                   RECITALS :

                  Owner,  through  1290  Partners,   L.P.,  a  Delaware  limited
             partnership   and  a  wholly  owned   subsidiary  of  Owner  ("1290
             Partners"), is the owner and holder of the fee simple estate in and
             to those certain plots,  pieces and parcels of land  (collectively,
             the  "Land")  commonly  known as 1290 Avenue of the  Americas,  New
             York,  New York and more  particularly  described  in  Schedule  A,
             together with the buildings and other  improvements  located on the
             Land (the building  located on the Land,  containing  approximately
             2,000,000  square feet,  being referred to as the  "Building";  the
             fixtures  equipment,   furnishings,  supplies  and  other  personal
             property of every nature,  tangible and intangible,  owned by Owner
             and used in connection with the Building,  being referred to as the
             "Personalty,"  and the Building,  the Land and the Personalty being
             collectively referred to as the "Property").

                  Purchaser  and 1290  Partners  are parties to the Purchase and
             Sale Agreement,  dated as of April 16, 2002 (the "Original Purchase
             and Sale Agreement"), and Purchaser, 1290 Partners and Owner hereby
             desire  to  amend  and  restate  the  Original  Purchase  and  Sale
             Agreement  in  its  entirety  in  accordance  with  the  terms  and
             conditions of this Agreement.

                  NOW,  THEREFORE,  in  consideration  of the  foregoing and the
mutual covenants and agreements  herein  contained,  the parties hereto covenant
and agree as follows:

                  1. DEFINITIONS.

Actions                                                      Section 10(a)(vi)
Additional Rent                                              Section 7(b)(x)
Agreement                                                    Preamble
AP-1290                                                      Section 4(h)
AP-1290 Obligations                                          Section 4(h)
Apportionment Date                                           Section 7(a)
AREIF                                                        Section 4(h)
Assumed Obligations                                          Section 7(j)
Base Rents                                                   Section 7(b)(i)
Broker                                                       Section 13(a)
Brokerage Agreements                                         Section 10(a)(xi)
Building                                                     Recitals
business day                                                 Section 4(e)
<PAGE>
Closing                                                      Section 16(a)
Closing Date                                                 Section 16(a)
Closing Statement                                            Section 7(a)
Commitment                                                   Section 6(a)
Confidentiality Letter                                       Section 27(b)
Contracts                                                    Section 3(b)
Contractual Cure Items                                       Section 6(c)
Control                                                      Section 26(d)
Damages                                                      Section 10(a)
Default Rate                                                 Section 7(i)
Deposit                                                      Section 4(a)
Eligible Assignee                                            Section 26(d)
Environmental Report                                         Section 3(b)
ERISA                                                        Section 10(b)(ii)
Escrow Agent                                                 Section 4(a)
Exceptions                                                   Section 6(a)
Exchange Act                                                 Section 8(f)
Existing Loan                                                Section 10(a)(xv)
Existing Loan Documents                                      Section 10(a)(xv)
FIRPTA                                                       Section 15(a)(xii)
Independent Accountant                                       Section 7(h)
Land                                                         Recitals
Leases                                                       Section 3(b)(iv)
Leasing Commissions                                          Section 7(j)
Limited Partnership Agreement                                Section 4(h)
Limitation Period                                            Section 10(a)
Loan                                                         Section 2(b)
Loan Term Sheet                                              Section 2(b)
Major Leases                                                 Section 8(a)(iii)
Major Tenant                                                 Section 9(a)(iv)
Material Damage                                              Section 11(b)
Material Taking                                              Section 12(b)
Notices                                                      Section 17
Original Purchase and Sale Agreement                         Recitals
Overage Rent                                                 Section 7(b)(iii)
Owner Related Parties                                        Section 3(d)
Owner                                                        Preamble
Owner Closing Certification                                  Section 9(a)(x)

                                       2
<PAGE>

Owner Common Stock                                           Section 9(a)(vi)
Owner's Knowledge                                            Section 10(a)(ii)
Permitted Encumbrances                                       Section 5
Personalty                                                   Recitals
Persons                                                      Section 26(d)
Property                                                     Recitals
Property Taxes                                               Section 7(a)(ii)
Purchase Price                                               Section 4
Purchaser                                                    Preamble
Purchaser Closing Certificate                                Section 9(b)(v)
Purchaser's Knowledge                                        Section 10(b)(iv)
Purchaser's Representatives                                  Section 3
Reconciliation Statement                                     Section 7(h)
Rent Audit                                                   Section 7(b)(viii)
Rents                                                        Section 7(a)(i)
Representation                                               Section 10(a)
SEC                                                          Section 8(f)
SEC Disclosure Documents                                     Section 8(f)
Security Deposits                                            Section 10(a)(iv)
Scheduled Closing Date                                       Section 16(a)
Special Committee                                            Section 8(c)
Superior Offer                                               Section 8(c)
Unsolicited Offer                                            Section 8(c)
Survey                                                       Section 6(a)
Taking                                                       Section 12(a)
Tenant Improvements                                          Section 7(j)
Third Party Information                                      Section 33(c)
Title Company                                                Section 6(a)
Title Objections                                             Section 6(a)
Trust                                                        Section 10(b)(i)
1290 Partners                                                Recitals
Unsolicited Offer                                            Section 8(c)
Utilities                                                    Section 7(e)
Voting Agreements                                            Section 8(e)

                                       3
<PAGE>

                  2. TERMS AND STRUCTURE OF PURCHASE.

                       (a) Owner hereby agrees to sell,  transfer and convey the
Property to Purchaser,  and  Purchaser  hereby agrees to purchase and accept the
Property  from  Owner,  in each  case on and  subject  to the  other  terms  and
conditions set forth in this Agreement.

                       (b) Not  later  than two (2) days  prior to the  Closing,
Purchaser or a designee of Purchaser hereby agrees to lend to Metropolis  Realty
Holdings LLC, a Delaware limited liability company which at such time shall hold
approximately  99.9% of the issued and  outstanding  shares of Owner,  an amount
equal to Two Hundred Million Dollars  ($200,000,000)  (the "Loan") on such terms
as set forth in the Term Sheet  attached  hereto as Exhibit  1-A (the "Loan Term
Sheet").

                  3. COMPLETION OF DUE DILIGENCE.

                       (a)  Purchaser has completed its review and due diligence
with  respect to the  Property.  Subject  to the  provisions  of  Section  3(c),
Purchaser  and  its  agents,  employees,  consultants,  inspectors,  appraisers,
engineers and  contractors  (collectively,  the  "Purchaser's  Representatives")
shall have the right through the Closing Date (unless this  Agreement is earlier
terminated in accordance  with its terms),  from time to time,  upon the advance
written notice required  pursuant to, and in accordance  with,  Section 3(c), to
enter upon and pass through the Property during normal business hours to examine
and inspect the same.

                       (b)  Owner  has  delivered  and  Purchaser   acknowledges
receipt of all of the following:

                            (i) plans and specifications for the construction of
the Building;

                            (ii)  engineering  reports  relating to the Premises
that have been issued or published in the past two years;

                            (iii)  copies of the  organizational  documents  for
Owner and 1290 Partners,  including the limited partnership agreement for Owner,
all amendments thereto, and all organizational documents filed with the Delaware
Secretary of State;

                            (iv)  copies  of all the (x)  leases,  licenses  and
occupancy  agreements demising space at the Premises,  including all amendments,
modifications and supplements thereto; and (y) guarantees relating to any of the
foregoing  leases,  licensees and occupancy  agreements  (the items described in
clauses (x) and (y) above collectively, the "Leases");

                            (v) copies of the service,  maintenance,  supply and
other material  agreements relating to the operation of the Premises pursuant to
which  there is a current  or future  obligation  of  Owner,  together  with all
amendments,  modifications and supplements relating thereto set forth on Exhibit
D hereto,  except for those  agreements  that  Purchaser  has notified  Owner in
writing  prior to the  Closing  Date that  Purchaser  will not assume  hereunder
(collectively the "Contracts");

                                       4
<PAGE>

                            (vi) copies of financial books and records  relating
to the operation of the Premises;

                            (vii) a copy of the most recent  as-built  survey of
the Premises;

                            (viii) a copy of Owner's  policy of title  insurance
on the Premises, together with copies of all exceptions set forth in such policy
of title insurance on the Property;

                            (ix) [Intentionally deleted]

                            (x) a copy of that phase I environmental  assessment
prepared for GE Capital  Corporation by Vertex  Engineering,  dated August, 1999
(the "Environmental Report");

                            (xi) copies of all  certificates of occupancy issued
with respect to the Premises;

                            (xii) copies of all unexpired  product and equipment
warranties for the Building, including, without limitation, any roof warranties;

                            (xiii)  a copy  of most  the  recent  ACP-5  for the
Premises;

                            (xiv) a copy of the most recent  local law 10 report
for the Premises;

                            (xv) a copy of the most  recent  RPI  filed  for the
Premises; and

                            (xvi)  copies of the  five-year  loss history of the
Premises for insurance purposes.

                       (c)  In  conducting   any  inspection  of  the  Property,
Purchaser  shall at all  times  comply  with all  laws  and  regulations  of all
applicable  governmental  authorities,  and  neither  Purchaser  nor  any of the
Purchaser's Representatives shall interfere with the business of Owner conducted
at the Property or disturb the use or occupancy of any occupant of the Property,
or damage the Property.  In conducting the foregoing  inspection,  Purchaser and
Purchaser's Representatives shall at all times comply with, and shall be subject
to, the rights of the tenants under the Leases (and any persons  claiming  under
or through such  tenants).  Purchaser  shall  schedule and  coordinate  all such
inspections with Owner;  provided,  however, that (i) Purchaser shall give Owner
reasonable  prior  notice  before each such entry,  (ii) each such notice  shall
include sufficient information identifying which of Purchaser's  Representatives
are to conduct such  inspection and permitting  Owner to review the scope of the
proposed inspection, and (iii) neither Purchaser nor Purchaser's Representatives
shall cause or permit any  borings,  drillings  or  samplings  to be done on the
Property  without  Owner's prior  written  consent in each  instance.  Purchaser
agrees to pay to Owner on demand the cost of repairing  and restoring any damage
which Purchaser or Purchaser's  Representatives shall cause to the Property. All
inspection fees,  appraisal fees,  engineering fees and other costs and expenses
of any kind  incurred by Purchaser or  Purchaser's  Representatives  relating to
such  inspection of the Property  shall be at the sole expense of Purchaser.  In
connection   with  any   inspections   conducted  by  Purchaser  or  Purchaser's
Representatives, Purchaser shall:

                                       5
<PAGE>

                            (i) permit  Owner to have a  representative  present
during all such inspections;

                            (ii) take all actions and implement all  protections
(in each case  consistent with industry  practice)  necessary to ensure that all
actions taken in connection with such inspections, and the equipment, materials,
and substances generated,  used or brought onto the Property,  pose no threat to
the safety or health of persons or the  environment,  and cause no damage to the
Property or other persons;

                            (iii)  furnish  to Owner,  at no cost or  expense to
Owner,  copies  of  all  surveys,  soil  test  results,  engineering,  asbestos,
environmental  and other  studies and  reports  generated  by third  parties not
affiliated with Purchaser;

                            (iv)  maintain  or  cause  to  be   maintained,   at
Purchaser's  expense,  a  policy  of  comprehensive   general  public  liability
insurance,   with  a  broad  form  contractual  liability  endorsement  covering
Purchaser's  indemnification  obligations  contained  in  Section  3(d)  hereof.
Purchaser  shall deliver a certificate  evidencing  such insurance to Owner upon
request; and

                            (v) not  allow any such  inspections  or any and all
other  activities  undertaken  by Purchaser or  Purchaser's  Representatives  to
result in any liens,  judgments  or other  encumbrances  being filed or recorded
against  the  Property,  and  Purchaser  shall,  at its sole  cost and  expense,
promptly discharge of record any such liens or encumbrances that are so filed or
recorded (including,  without limitation, liens for services, labor or materials
furnished).

                       (d) Purchaser  agrees to indemnify and hold Owner and its
affiliates and their respective  shareholders,  officers,  directors,  partners,
principals,  members, employees and agents, and any successors or assigns of the
foregoing  (collectively  with Owner, the "Owner Related Parties") harmless from
and against any and all losses,  costs, damages,  liens, claims,  liabilities or
expenses (including, but not limited to, reasonable attorneys' fees, court costs
and disbursements)  incurred by any of the Owner Related Parties arising from or
by reason of Purchaser's and/or Purchaser's  Representatives' inspection of, the
Property,  or any tests,  inspections or other due diligence  conducted by or on
behalf of Purchaser (whether or not the same shall occur on or prior to the date
hereof),  except  that  the  foregoing  will  not  be  construed  to  cover  the
negligence,  willful  misconduct or bad faith of any Owner Related Party, or any
actions  required to be taken by law as a result of the  findings  generated  by
Purchaser's  activities;   provided,  however,  that  Purchaser  agrees  to  use
commercially reasonable efforts to maintain confidential and not to disclose any
of its findings to any third party (other than to persons  acting on its behalf,
and to potential  lenders and potential  investors,  and to any other parties to
whom  disclosure  may be required by law) without the prior  written  consent of
Owner, including without limitation, any governmental authority.

                                       6
<PAGE>

                  4. PURCHASE PRICE.

                  The purchase price  ("Purchase  Price") for the Premises shall
be  Seven   Hundred   Forty-Five   Million   Five   Hundred   Thousand   Dollars
($745,500,000). The Purchase Price shall be payable as follows:

                       (a)  Prior  to  the   execution  of  this   Agreement  by
Purchaser, Purchaser has delivered to Fidelity National Title Insurance Company,
Atlanta  Office,  as escrow  agent  (when  acting as escrow  agent,  the "Escrow
Agent"),  the  amount of  Twenty  Five  Million  Dollars  ($25,000,000)  by wire
transfer in immediately  available federal funds to the escrow account of Escrow
Agent in  accordance  with the wire  instructions  set forth on  Exhibit 1 (such
deposit  which  is made  pursuant  to this  subsection  (a),  together  with any
additions thereto made by Purchaser  pursuant to Section 16(b), and all interest
accrued thereon,  the "Deposit"),  and the Escrow Agent hereby  acknowledges the
receipt thereof;

                       (b) Escrow Agent has caused, and shall cause, the Deposit
to be  invested  in  commercial  paper,  corporate  promissory  notes  or  other
obligations  maturing  on  or  prior  to  Closing,   and,  as  at  any  date  of
determination,  rated A or better (or, in the case of commercial  paper,  A-1 or
better) by S&P, or, A2 or better (or, in the case of  commercial  paper,  P-1 or
better) by Moody's,  or insured  certificates of deposit maturing on or prior to
Closing of any commercial  bank that is a member of the Federal  Reserve System,
the  short-term  obligations of which are rated A2 or better by Moody's and A or
better by S&P, as designated in writing from time to time by Purchaser to Escrow
Agent  (provided,  that Purchaser shall not designate any such investment  which
has a maturity date occurring after the Closing Date). Escrow Agent shall not be
liable for (1) any loss of such  investment  (unless due to Escrow Agent's gross
negligence or willful  misconduct) or (2) any failure to attain a favorable rate
of return on such investment.  Escrow Agent shall deliver the Deposit,  to Owner
or to Purchaser, as the case may be, under the following conditions:

                            (i) The Deposit  shall be  delivered to Owner on the
Closing Date upon  receipt by Escrow Agent of a statement  executed by Owner and
Purchaser that the Deposit may be released; or

                            (ii)  The  Deposit   shall  be  delivered  to  Owner
following  receipt by Escrow Agent of written demand therefor from Owner stating
that  Purchaser  has  defaulted  in the  performance  of  any  of  its  material
obligations  required to be  performed  by  Purchaser on or prior to the Closing
(which  notice  will  generally  state the basis  for the claim of  default)  if
Purchaser  shall not have given written  notice of objection in accordance  with
the provisions set forth below in Section 4(c); provided, however, if Owner only
demands a portion of the  Deposit,  Escrow Agent shall only deliver such portion
of the Deposit to Owner and the  remainder of the Deposit  shall be delivered by
Escrow Agent to Purchaser; or

                            (iii) The Deposit  shall be  delivered  to Purchaser
following  receipt by Escrow Agent of written  demand  therefor  from  Purchaser
stating  that Owner has  defaulted  in the  performance  of any of its  material
obligations  required to be performed by Owner on or prior to the Closing (which
notice  will  generally  state the basis for the claim of  default) or that this
Agreement was terminated under  circumstances  entitling Purchaser to the return
of the Deposit,  and  specifying  the Section of this  Agreement  which entitles
Purchaser  to the return of the Deposit,  if Owner shall not have given  written
notice of objection in accordance with the provisions set forth below in Section
4(c); or

                                       7
<PAGE>

                            (iv) The Deposit  shall be delivered to Purchaser or
Owner as directed by joint written instructions of Owner and Purchaser.

                       (c) Upon the filing of a written  demand for the  Deposit
by Owner or Purchaser,  pursuant to subsection (ii) or (iii) above, Escrow Agent
shall promptly give written notice thereof  (including a copy of such demand) to
the other party.  The other party shall have the right to object to the delivery
of the Deposit,  by giving  written  notice of such objection to Escrow Agent at
any time within ten (10) days after such party's  receipt of written notice from
Escrow  Agent,  but not  thereafter.  Such notice  shall set forth the basis for
objecting  to the  delivery  of the  Deposit.  Upon  receipt  of such  notice of
objection,  Escrow Agent shall  promptly give a copy of such notice to the party
who filed the written  demand.  If Escrow Agent shall have timely  received such
notice of objection,  Escrow Agent shall  continue to hold the Deposit until (i)
Escrow Agent receives  joint written  notice from Owner and Purchaser  directing
the disbursement of the Deposit,  in which case Escrow Agent shall then disburse
the Deposit in accordance with said  direction,  or (ii) litigation is commenced
between  Owner and  Purchaser,  in which case  Escrow  Agent  shall  deposit the
Deposit  with the clerk of the court in which said  litigation  is  pending  and
notify Owner and  Purchaser in writing  that it has  deposited  the Deposit with
such clerk, or (iii) Escrow Agent takes such  affirmative  steps as Escrow Agent
may elect, at Escrow Agent's option, in order to terminate Escrow Agent's duties
hereunder,  including but not limited to depositing  the Deposit (and  notifying
Owner and Purchaser  that it has deposited the Deposit) in court and  commencing
an action for interpleader,  the costs thereof to be borne by whichever of Owner
or Purchaser is the losing party.

                       (d) Escrow Agent may rely and act upon any  instrument or
other writing  reasonably  believed by Escrow Agent to be genuine and purporting
to be signed and presented by any person or persons purporting to have authority
to act on behalf  of Owner or  Purchaser,  as the case may be,  and shall not be
liable in  connection  with the  performance  of any duties  imposed upon Escrow
Agent by the provisions of this  Agreement,  except for Escrow Agent's own gross
negligence,  willful misconduct or default. Escrow Agent shall have no duties or
responsibilities  except those set forth herein. Escrow Agent shall not be bound
by any  modification,  cancellation  or rescission of this Agreement  unless the
same is in writing and signed by Purchaser and Owner and delivered to the Escrow
Agent, and, if Escrow Agent's duties hereunder are affected, unless Escrow Agent
shall have given prior written consent thereto. Escrow Agent shall be reimbursed
by Owner and Purchaser  for any expenses  (including  reasonable  legal fees and
disbursements  of outside  counsel,  including  all of Escrow  Agent's  fees and
expenses with respect to any  interpleader  action  incurred in connection  with
this Agreement),  and such liability shall be joint and several;  provided that,
as between  Purchaser and Owner,  the  prevailing  party in any dispute over the
Deposit shall be entitled to  reimbursement  from the other of any such expenses
paid to Escrow  Agent.  If the  Escrow  Agent  shall be  uncertain  as to Escrow
Agent's duties or rights hereunder, or shall receive instructions from Purchaser
or Owner  that,  in Escrow  Agent's  opinion,  are in  conflict  with any of the
provisions hereof, Escrow Agent shall be entitled to hold the Deposit, until any
of the events  described in clauses  (i);  (ii) or (iii) of Section 4(c) occurs.
After delivery of the Deposit in accordance herewith, Escrow Agent shall have no
further liability or obligation of any kind whatsoever.

                                       8
<PAGE>

                       (e)  Escrow  Agent  shall  have the  right at any time to
resign upon ten (10) business days prior written  notice to Owner and Purchaser.
Owner and  Purchaser  shall  jointly  select a successor  Escrow Agent and shall
notify  Escrow  Agent of the name and  address of such  successor  Escrow  Agent
within ten (10)  business  days after  receipt of notice of Escrow  Agent of its
intent to  resign.  If  Escrow  Agent  has not  received  notice of the name and
address of such  successor  Escrow Agent within such period,  Escrow Agent shall
have the  right to select  on  behalf  of Owner  and  Purchaser  a bank or trust
company,  located in New York City, with a minimum net worth of  $2,000,000,000,
to act as  successor  Escrow  Agent  hereunder.  At any time  after the ten (10)
business  day period,  Escrow Agent shall have the right to deliver the Deposit,
to any successor Escrow Agent selected hereunder, provided such successor Escrow
Agent shall execute and deliver to Owner and  Purchaser an assumption  agreement
whereby  it  assumes  all of  Escrow  Agent's  obligations  hereunder.  Upon the
delivery of all such amounts and such assumption agreement, the successor Escrow
Agent shall become the Escrow Agent for all  purposes  hereunder  and shall have
all of the  rights  and  obligations  of the  Escrow  Agent  hereunder,  and the
resigning  Escrow Agent shall have no further  responsibilities  or  obligations
hereunder.  As used in this Agreement,  the term "business day" shall mean every
day other than Saturdays,  Sundays, all days observed by the federal or New York
State government as legal holidays and all days on which commercial banks in New
York State are required by law to be closed.

                       (f) At the Closing, the Deposit shall be a credit against
the Purchase  Price,  and  Purchaser  shall  deliver on the Closing Date by wire
transfer of  immediately  available  federal  funds to an account  designated by
Owner no later than two (2)  business  days prior to Closing an amount  equal to
the Purchase Price less the Deposit,  subject to adjustments and  apportionments
as set forth herein.

                       (g) All monies  payable by Purchaser at the Closing under
this Agreement,  unless otherwise specified in this Agreement,  shall be paid by
Purchaser  causing said amount to be wire  transferred to a bank or banks in the
United States advised in writing by Owner in immediately available federal funds
for credit to such bank  account or  accounts,  and divided into such amounts as
may be required to consummate the transactions contemplated by this Agreement.

                       (h)  To  the  extent  AP-1290  LLC,  a  Delaware  limited
liability  company  ("AP-1290"),  shall not make all or any  portion  of its (i)
$82,625,000  initial capital  contribution  and (ii) $1,100,000  payment for its
portion of the closing  costs for the new loan for the  Property  (the  "AP-1290
Obligations")  in  accordance  with and  subject  to the  terms of that  certain
Limited  Partnership  Agreement,  dated  as of the  date  hereof  (the  "Limited
Partnership  Agreement"),  by and among JT 1290 Corp.,  Jamestown 1290 Partners,
and AP-1290,  then,  (i) Purchaser may deliver a note made by Apollo Real Estate
Investment  Fund,  L.P.  ("AREIF")  in favor of Owner in an amount not to exceed
$83,725,000,  which note shall be secured by any dividends  otherwise payable by
Owner from the proceeds of the sale hereunder, to AREIF, (ii) Owner shall have a
security interest in the dividends payable to AREIF and immediately upon receipt
of such  dividends  AREIF  shall  pay the face  amount  of the  note,  and (iii)
Purchaser  shall receive a credit  against the Purchase Price in an amount equal
to face amount of such note.

                                       9
<PAGE>

                  5. STATUS OF TITLE.

                  Subject to the terms and provisions of this Agreement,  on the
Closing Date the  Property  shall be subject  only to the  exceptions  listed on
Exhibit 2 attached hereto and made a part hereof and matters approved and deemed
approved   hereunder  and  to  the  following   (collectively,   the  "Permitted
Encumbrances"):

                       (a)  Property  Taxes which are a lien but not yet due and
payable, subject to proration in accordance with Section 7;

                       (b) any utility company rights,  easements and franchises
for electricity,  water,  steam, gas, telephone or other service or the right to
use and maintain poles,  lines, wires,  cables,  pipes, boxes and other fixtures
and facilities in, over, under and upon the Property,  provided that the same do
not materially adversely affect the present use of the Property;

                       (c) the  Leases in effect at the  Closing  and the rights
and  interests  held by  tenants,  as tenants  only,  under such  Leases and all
persons  claiming by,  through or under such  tenants;  provided,  however,  the
foregoing is not intended to waive any condition to the Closing  relating to the
breach of any representation or warranty relating to Leases;

                       (d)  the  terms  and  conditions  of  the  Existing  Loan
Documents,  provided that Owner shall be responsible for the payment of all sums
secured by the Existing Loan Documents;

                       (e)  building  codes  and  restrictions   heretofore  and
hereafter adopted by any public agency;

                       (f) right,  lack of right or restrictions on the right of
any owner of the  Property to construct or maintain any vault or vaulted area in
or under the sidewalks abutting the Property,  any licensing statute,  ordinance
or regulation, and the terms of any license pertaining thereto, and any fees for
vault space which may hereafter be assessed;

                       (g)  present   and  future   zoning   laws,   ordinances,
resolutions,  orders and regulations of all municipal, county, state and federal
governments having jurisdiction over the Property and the use thereof;

                       (h) all municipal violations of record;

                       (i) possible lack of or revocable nature of the right, if
any, to  maintain  or use any space,  facilities  or  appurtenances  outside the
building  lines,  whether  on,  over  or  under  the  land,  including,  without
limitation, all vaults, signs and sidewalk openings;

                       (j)  any  state  of  facts   shown  on  the   Survey  (as
hereinafter  defined),  and any  change  since the date of such  Survey  that an
accurate  survey  of  the  Property  or a  physical  inspection  thereof  would,
disclose, including without limitation, all encroachments and projections of the
Property  upon or over streets or adjacent  premises and all  encroachments  and
projections on or over the Property or any variations  between tax lot lines and
lines of record title of the Property,  provided that such changes do not render
title unmarketable;

                       (k) any lien or encumbrance caused by Purchaser or any of
its agents.

                                       10
<PAGE>

                  6. TITLE INSURANCE; LIENS.

                       (a) Purchaser acknowledges receipt from Owner on or prior
to the date hereof of an as-built  ALTA  survey of the  Property,  dated June 7,
1963 and last redated  March 18, 2002 (the  "Survey")  and a  commitment  for an
owner's policy of title insurance dated January 8, 2002 (the  "Commitment") with
respect to Owner's  ownership  of the  Property  from  Fidelity  National  Title
Insurance Company, Atlanta Office (the "Title Company"). Owner acknowledges that
Purchaser  may  obtain  title  insurance  and  subsequent   title  searches  and
continuations from any nationally recognized title insurance company.

                            (i)  Prior  to  the  execution  of  this  Agreement,
Purchaser shall have notified Owner in writing if the Commitment or Survey shall
set  forth  any  material  liens,  encumbrances,  encroachments  or other  title
exceptions,  other than the Permitted Encumbrances,  to which Purchaser does not
consent, and which are not otherwise permitted hereunder (each, an "Exception"),
and such notice shall  specify the  Exceptions to which  Purchaser  objects (the
"Title  Objections").  If Purchaser has not  delivered  such notice prior to the
execution of this Agreement,  Purchaser shall be deemed to have waived its right
to object to any Exceptions  (and the same shall not be deemed Title  Objections
and shall be deemed Permitted Encumbrances),  except as to matters arising after
the date of the Commitment, which shall be subject to the terms forth in Section
6(d).  If  Purchaser  shall  deliver  such  notice  prior to  execution  of this
Agreement,  any  Exceptions  which are not  objected to in such notice shall not
constitute Title Objections and shall be deemed Permitted Encumbrances.

                       (b) If Owner  notifies  Purchaser  within  ten (10)  days
after the Owner's receipt of any notice of any Title Objection that it is unable
or unwilling to eliminate  any such Title  Objection  which is not a Contractual
Cure Item,  then unless the same is waived by Purchaser,  Purchaser may elect by
written  notice to Owner  delivered  within ten (10) days after  receipt of such
notice from Owner to (i) accept the title to the Property  subject to such Title
Objection  without  abatement of the Purchase  Price,  in which event such Title
Objection shall be deemed to be, for all purposes, a Permitted  Encumbrance,  or
(ii) terminate this  Agreement,  in which event Purchaser shall be entitled to a
return of the Deposit.  Upon the timely giving of any  termination  notice under
clause (ii),  this Agreement shall terminate and neither party hereto shall have
any further rights or obligations hereunder other than those which are expressly
provided to survive the termination hereof.

                       (c) Owner shall be required,  at or prior to the Closing,
to take one of the following  actions with respect to any Contractual Cure Item:
(x) to satisfy such Contractual Cure Item (by payment, bonding or otherwise), or
(y) to cause such Contractual Cure Item to be satisfied by delivery to the Title
Company at the Closing of an affidavit or other  document  required by the Title
Company.  The following shall constitute  "Contractual Cure Items": (i) Property
Taxes then due and payable as of the Closing Date and not being  apportioned  by
the parties  pursuant to Section 7; (ii) any Title  Objections  which arise from
the act or  failure  to act of Owner  and can be  removed  by the  payment  of a
liquidated sum of money and (iii) those items listed on Exhibit 3.

                                       11
<PAGE>

                       (d)  Purchaser   shall  have  the  right  to  update  the
Commitment  prior to Closing and make  objection by written notice to Owner with
respect to any matter which arises after the date of the Commitment but prior to
Closing,  which matters shall  constitute  valid  "Exceptions"  and which notice
shall constitute valid "Title  Objections";  provided,  however,  that Purchaser
shall be able to terminate this Agreement with respect to such additional  Title
Objections  (which do not constitute  Contractual  Cure Items) only if Owner (x)
fails to eliminate such Title  Objection on or prior to the Closing Date and (y)
such Title  Objection,  individually or in the aggregate,  would have a material
adverse effect on the Property; provided, further, that if such matter would not
constitute  a material  adverse  effect on the  Property,  then Owner  shall use
commercially  reasonable  efforts to eliminate such Title Objections on or prior
to the Closing Date,  and if such Title  Objections is not so eliminated by such
time,  then  Purchaser  shall be deemed to have  accepted  title to the Property
subject to such Title  Objections  without  abatement of the Purchase  Price and
such  Title  Objection  will  deemed  to  be,  for  all  purposes,  a  Permitted
Encumbrance.

                  7. APPORTIONMENTS.

                       (a) The following shall be apportioned  between Purchaser
and Owner as of 11:59 p.m. on the day  immediately  preceding  the Closing  Date
(the  "Apportionment  Date")  on the basis of the  actual  number of days of the
month which shall have  elapsed as of the Closing Date and based upon the actual
number  of days in the  month and a 365 day  year,  and  reflected  on a closing
statement (the "Closing Statement") to be agreed upon by Purchaser and Owner and
executed at Closing:

                            (i) subject to Section 7(b),  prepaid  rents,  fixed
rents and additional  rents payable pursuant to the Leases  (including,  without
limitation,  operating expense escalation  payments,  real estate tax escalation
payments and percentage rent, if any,  payable under the Leases)  (collectively,
"Rents") and all other  revenue or income  derived with respect to the Property,
all on an if, as and when collected basis;

                            (ii) real estate taxes, sewer rents and taxes, water
rates and charges,  vault charges and taxes, business improvement district taxes
and assessments and any other governmental taxes,  charges or assessments levied
or assessed against the Property (collectively,  "Property Taxes"), on the basis
of the  respective  periods  for  which  each  is  assessed  or  imposed,  to be
apportioned in accordance with Section 7(c);

                            (iii)  fuel,  if any,  as  reasonably  estimated  by
Owner's  supplier,  at Owner's  cost,  together  with any sales taxes payable in
connection  therewith,  if any (a letter from  Owner's  fuel  supplier  shall be
conclusive  evidence  as to the  quantity  of  fuel  on hand  and  Owner's  cost
therefor);

                            (iv)  prepaid  fees,  if any, for licenses and other
permits which will be transferred by Owner to Purchaser on the Closing Date;

                            (v) any  amounts  prepaid or payable by Owner  under
the Contracts in effect as of the Closing Date;

                            (vi) business improvement district dues, if any;

                                       12
<PAGE>

                            (vii)   such   other   items   as  are   customarily
apportioned  between sellers and purchasers of real properties of a type similar
to the Property and located in the City, County and State of New York.

                       (b)  (i) Monthly base rents (collectively,  "Base Rents")
under the Leases shall be adjusted and prorated on an if, as and when  collected
basis.  Base Rents  collected  after the Closing  Date from tenants who owe Base
Rents for periods prior to the Closing  Date,  shall be applied,  (A) first,  in
payment of Base Rents for the month in which received; (B) second, in payment of
Base Rents for the month in which the Closing Date occurs; (C) third, in payment
of Base Rents for any period after Closing Date for which Base Rent has not been
paid;  and (D)  fourth,  in payment of Base Rents for the  periods  prior to the
Closing Date.  Each such amount,  less  reasonable  collection  costs,  shall be
adjusted  and  prorated as provided  above and the party  receiving  such amount
shall,  within ten (10) business  days,  pay to the party  entitled  thereto the
portion thereof to which it is entitled.

                            (ii)  Purchaser  will  use  commercially  reasonable
efforts,  from and after the Closing,  to demand payment of and collect rent and
Additional Rent (as hereinafter  defined) arrearages owed to Owner by any tenant
for the  benefit  of Owner.  Owner will have the right,  after the  Closing,  to
pursue any remedies against such tenants; provided, however, that Owner will not
have the  right  to seek  eviction  of any  tenant  or  otherwise  commence  any
litigation against any tenant.  Owner shall not compromise,  waive or settle any
claim against a tenant with respect to rent and  Additional  Rent  arrearages in
respect of any period prior to the Closing  without the prior written consent of
Purchaser.

                            (iii) With  respect to any Lease that  provides  for
the payment of additional  or  escalation  rent based upon (A) a percentage of a
tenant's gross sales during a specified  annual or other period or (B) increases
in real estate taxes, operating expenses, labor costs, cost of living indices or
porter's  wages  (collectively,  "Overage  Rent"),  such  Overage  Rent shall be
adjusted and prorated on an if, as and when collected basis.

                            (iv) Subject to the other provisions of this Section
7, for any Overage Rent payable for an  accounting  period that expired prior to
the Closing Date,  but which shall be paid after the Closing  Date,  such entire
amount shall belong to Owner and if Purchaser shall receive the same,  Purchaser
shall pay such amount  (less  reasonable  collection  costs) to Owner within ten
(10) business days after receipt thereof.

                            (v) Overage Rent payable for the  accounting  period
in which the Closing  Date occurs shall be  apportioned  between  Purchaser  and
Owner based upon the ratio that the portion of such  accounting  period prior to
the Closing Date bears to the entire such  accounting  period.  If, prior to the
Closing Date,  Owner receives any  installments of Overage Rent  attributable to
Overage  Rent for periods  from and after the Closing  Date,  such sums shall be
apportioned at the Closing Date. Any  installments of Overage Rent  attributable
to Overage  Rent for  periods  prior to the Closing  Date,  subject to the other
provisions of this Section, shall belong to Owner and if Purchaser shall receive
the same, Purchaser shall pay such amount (less reasonable  collection costs) to
Owner within ten (10) business days.

                                       13
<PAGE>

                            (vi) Any payment by tenants of Overage Rent shall be
applied  to  Overage  Rents  then  due and  payable  in the  following  order of
priority:  (A)  first,  in  payment  of  Overage  Rents  for the  month in which
received;  (B)  second,  in payment of Overage  Rents for the month in which the
Closing Date occurs; (C) third, in payment of Overage Rents for any period after
the Closing Date in which Overage Rents have not been paid;  and (D) fourth,  in
payment of Overage Rents for the periods  prior to the Closing  Date.  Each such
amount,  less  reasonable  collection  costs,  shall be adjusted and prorated as
provided  above and the party  receiving  such  amount  shall,  within  ten (10)
business days, pay to the party entitled thereto the portion thereof to which it
is entitled.

                            (vii)  Subject to the payment  priority set forth in
clause (vi) above,  to the extent any portion of Overage  Rent is required to be
paid monthly by tenants on account of estimated  amounts for the current period,
and at the end of each  calendar  year (or,  if  applicable,  at the end of each
lease  year  or tax  year  or any  other  applicable  accounting  period),  such
estimated amounts are to be recalculated  based upon the actual expenses,  taxes
and other  relevant  factors  for that  calendar  (lease or tax) year,  with the
appropriate  adjustments being made with such tenants,  then such portion of the
Overage Rent shall be prorated  between  Purchaser and Owner on the Closing Date
based on such estimated  payments  (i.e.,  with (x) Owner entitled to retain all
monthly  installments  of such  amounts  with  respect to  periods  prior to the
calendar month in which the Closing Date occurs,  to the extent such amounts are
as of the Closing Date  estimated to equal the amounts  ultimately  due to Owner
for such periods, (y) Owner and Purchaser  apportioning all monthly installments
of such amounts  with  respect to the  calendar  month in which the Closing Date
occurs and (z) Purchaser entitled to all monthly installments after the Closing.
The parties shall make final  reconciliation  of such estimates  pursuant to the
provisions of Section 7(i) below.

                            (viii) To the extent that any tenant,  pursuant to a
right contained in an existing tenant lease, conducts an audit prior to December
26, 2002  respecting  any Overage Rent or Additional  Rent  calculation (a "Rent
Audit") for an  accounting  period that expires  prior to the Closing  Date,  or
otherwise  becomes  entitled to a refund of Overage Rent or Additional Rent with
respect to a period that expires  prior to or includes the Closing  Date,  Owner
shall be liable for its  prorated  share of any refunds due to such tenant or be
the  recipient  of any  additional  payments due by such tenant as the result of
such Rent Audit (and will bear all costs  relating  to the Rent Audit  which are
the  responsibility  of the landlord  under the lease in question (or a pro-rata
share thereof if also covering  subsequent periods including any period in which
the Closing occurs)).  As an example, if the landlord is required to reimburse a
tenant for an audit covering only the operating  expenses for the operating year
before the Closing,  that obligation  shall be solely Owner's,  but if the audit
covers both the  operating  year before the  Closing and the  operating  year in
which the Closing  occurs,  such audit cost shall first be split between the two
years based on the  relative  dollar  amount to be repaid to the tenant for each
such year,  with Owner  bearing all of the costs  allocated  to the  pre-closing
operating  year, and then the amount  allocated to the year in which the Closing
occurs shall be apportioned  between Owner and Purchaser  based on the ownership
of the Property  during such  operating  year. The results of any Rent Audit for
any  accounting  period in which the Closing Date occurs shall be apportioned in
the same manner as Overage Rent. Rent Audits for accounting  periods  commencing
after the Closing Date shall each be settled by Purchaser in accordance with the
applicable  existing Lease.  Any amounts required to be paid by Owner under this
paragraph (viii) shall be paid on or before December 26, 2002.

                                       14
<PAGE>

                            (ix) To the  extent  that  any  amounts  are paid or
payable by a tenant under a Lease in advance of the period to which such expense
applies,  whether  as a one  time  payment  or in  installments  (e.g.  for real
property tax  escalations),  such amounts shall be apportioned as provided above
but based upon the period for which such payments were or are being made.

                            (x) To the  extent  tenants  pay items of Rent which
are not Base Rents or Overage  Rents,  such as charges for  electricity,  steam,
water, cleaning, overtime services, sundry charges or other charges of a similar
nature  (collectively,  "Additional  Rent"), such rent shall be applied based on
the  period  covered  by such  Additional  Rent  charge  (i.e.,  the  period the
applicable  work,  utility or service  was  provided).  If the period to which a
payment of Additional Rent applies cannot  reasonably be determined based on the
context  of such  payment,  then such  Additional  Rent  shall be applied to the
period(s) determined in accordance with paragraph (i) above in the same order of
priority as Base Rent. For any Additional Rent payable for a period that expired
prior to the Closing Date,  but which shall be paid after the Closing Date,  the
entire amount  thereof shall belong to Owner and if Purchaser  shall receive the
same,  Purchaser  will pay such amount to Owner within ten (10)  business  days.
Additional Rent payable for the period in which the Closing Date occurs shall be
apportioned  between  Owner and  Purchaser  based upon the same  method  used to
apportion the underlying expense being billed to such tenant, or if such expense
is not being  apportioned,  then based  upon the ratio that the  portion of such
accounting  period prior to the Closing Date bears to the entire such accounting
period.

                            (xi)  To the  extent  any  payment  received  from a
tenant after the Closing does not indicate whether the payment is for an item of
Base Rent,  Overage  Rent or  Additional  Rent,  and the same can not be clearly
determined  from the context of such  payment  (e.g.,  it is  accompanied  by an
invoice  for an item of  Base  Rent,  Overage  Rent or  Additional  Rent in such
amount), then such payment will be applied (x) first to payment of any Base Rent
then due or delinquent,  in accordance with  paragraphs (i) and (ii) above,  (y)
second to payment of any Additional  Rent then due or delinquent,  in accordance
with  paragraph  (x)  above  and (z)  third  to any  Overage  Rent  then  due or
delinquent, in accordance with paragraphs (iv)-(ix) above.

                       (c) Property  Taxes shall be  apportioned on the basis of
the fiscal  period for which  assessed.  If the Closing  Date shall occur either
before an  assessment is made or a tax rate is fixed for the tax period in which
the Closing Date occurs,  the apportionment of such Property Taxes based thereon
shall be made at the  Closing  Date by applying  the tax rate for the  preceding
year to the latest assessed valuation, but, promptly after the assessment and/or
tax rate for the current  year are fixed,  the  apportionment  thereof  shall be
recalculated  and  Owner  or  Purchaser,  as the  case  may  be,  shall  make an
appropriate  payment to the other  within ten (10)  business  days based on such
recalculation.  If as of the Closing  Date the  Property or any portion  thereof
shall be affected by any special or general  assessments which are or may become
payable in  installments  of which the first  installment is then a lien and has
become payable,  Owner shall only be responsible for the unpaid  installments of
such assessments which are due prior to the Closing Date and Purchaser shall pay
such installments which are due on or after the Closing Date.

                                       15
<PAGE>

                       (d) If  there  are  water  meters  at the  Property,  the
unfixed water rates and charges and sewer rents and taxes covered by meters,  if
any, shall be apportioned  (i) on the basis of an actual reading done within two
(2) days prior to the  Apportionment  Date, or (ii) if such reading has not been
made, on the basis of the last available  reading.  If the  apportionment is not
based on an actual current reading,  then upon the taking of a subsequent actual
reading,  the parties shall,  within ten (10) business days following  notice of
the determination of such actual reading,  readjust such apportionment and Owner
shall deliver to Purchaser, or Purchaser shall deliver to Owner, as the case may
be, the amount determined to be due upon such readjustment.

                       (e) Owner  will use  commercially  reasonable  efforts to
have meters for other utilities (not the  responsibility  of tenants) read on or
just prior to the Closing  Date.  Charges for all  electricity,  steam,  gas and
other utility services (collectively,  "Utilities") shall be for Owner's account
up to the  Apportionment  Date and, from and after the  Apportionment  Date, all
utilities shall be for Purchaser's account. Each Utility shall be apportioned on
the basis of actual current readings or, if such readings have not been made, on
the basis of the most recent bills that are available.  If any  apportionment is
not based on an actual  current  reading,  then upon the taking of a  subsequent
actual  reading,  the parties  shall,  within ten (10) business  days  following
notice of the determination of such actual reading,  readjust such apportionment
and Owner shall  promptly  deliver to  Purchaser,  or Purchaser  shall  promptly
deliver to Owner, as the case may be, the amount  determined to be due upon such
adjustment.

                       (f)  Purchaser  shall have no right to receive any rental
insurance  proceeds which relate to the period prior to the Closing Date, all of
which shall be the property of Owner.

                       (g) With  respect to all tax years  prior to the tax year
in which the Closing occurs,  Purchaser shall be entitled to commence,  continue
and control the  progress of, and shall be entitled to make all  decisions  with
respect to, any proceeding or proceedings,  whether or not now pending,  for the
reduction  of  the  assessed  valuation  of  the  Property,  and,  in  its  sole
discretion,  to try or settle the same. Any such proceeding or proceedings  with
respect to the tax year in which the Closing occurs, and all decisions regarding
the  commencement,  continuation,  trial or  settlement  of such  proceeding  or
proceedings, shall be controlled,  subsequent to the Closing, by Purchaser. Each
of Purchaser and Owner agrees to cooperate with the other in connection with the
prosecution  of any such  proceedings  and to take all steps,  whether before or
after the Closing  Date,  as may be necessary to carry out the  intention of the
foregoing,  including,  without  limitation,  the delivery to any other party to
this  Agreement,  upon  demand,  of any relevant  books and  records,  including
receipted  tax bills and  cancelled  checks used in payment of such  taxes,  the
execution of any and all consents or other documents,  and the taking of any act
necessary for the collection of such refund by the requesting party.  During its
period of ownership, Owner has challenged the Property assessments for tax years
1990-1991  through  2001-2002 and has settled and received payment on account of
tax years 1990/91  through  1996/97.  All refunds or credits owed to any tenants
presently in occupancy on account of such  refund(s)  have been paid or credited
by Owner in full. Any  subsequent  tax refunds  belonging in whole or in part to
Owner, shall be paid to Owner after first deducting  therefrom any payments owed
to tenants on account  thereof or, if such payment is made  directly to Owner or
1290  Partners,  Owner  shall pay to  Purchaser  such  amounts  (if any) owed to
tenants on account thereof within ten (10) days after receipt of such refund.

                                       16
<PAGE>

                       (h) No later  than  December  1,  2002,  Purchaser  shall
prepare and deliver to Owner (or its  successor)  for the review and approval of
Owner a final reconciliation of the Closing Statement reasonably satisfactory to
Owner in form and substance (the  "Reconciliation  Statement") setting forth the
final  determination  of the adjustments and prorations  provided for herein and
setting  forth any items which are not capable of being  determined at such time
(and the manner in which such items  shall be  determined  and paid).  Owner and
Purchaser  shall  use  good  faith  efforts  to agree  upon  the  Reconciliation
Statement  by December 15, 2002.  If Owner and  Purchaser  cannot agree upon the
Reconciliation  Statement by December 15, 2002, then Owner and Purchaser  shall,
within five (5) days thereafter (i) appoint Ernst & Young LLP (the  "Independent
Accountant"),  to resolve all  disputes in  connection  with the  Reconciliation
Statement  for  purposes  of this  Agreement  within  thirty (30) days after its
appointment; and (ii) present in writing to the Independent Accountant, all work
papers and other information used to prepare the Reconciliation  Statement,  and
such  additional  information  on their behalf as they shall  desire  supporting
their  positions.  The  resolution of the dispute  rendered by such  Independent
Accountant shall be final and binding upon the Owner and Purchaser. The fees and
expenses  of the  Independent  Accountant  shall be borne by the  non-prevailing
party in the dispute.

                       (i) The net amount  due Owner or  Purchaser,  if any,  by
reason of  adjustments  to the  closing  statement  executed  by the  parties at
Closing,  as shown in the  Reconciliation  Statement,  shall be readjusted based
upon the terms of this  Section 7. If, based upon such  readjustments,  Owner is
entitled to additional amounts,  Purchaser will pay such amounts to Owner within
ten (10) days  following  the approval by Owner and  Purchaser but no later than
December  26,  2002,  unless  there is a dispute  submitted  to the  Independent
Accountant,  then within ten (10) days  following the resolution of such dispute
by the Independent Accountant.  If, based upon such readjustments,  Purchaser is
entitled to additional amounts, Owner shall pay such amounts to Purchaser within
ten  (10)  days   following   the  approval  by  Owner  and   Purchaser  of  the
Reconciliation Statement, but no later than December 26, 2002, unless there is a
dispute  submitted  to the  Independent  Accountant,  then  within ten (10) days
following the  resolution  of such dispute by the  Independent  Accountant.  The
adjustments,  prorations and determinations  agreed to by Owner and Purchaser in
Reconciliation Statement or as determined by the Independent Accountant shall be
conclusive  and binding on the parties  hereto.  If any payment to be made after
the Closing  under this Section 7(i) shall not be paid when due  hereunder,  the
same shall bear  interest  (which  shall be paid  together  with the  applicable
payment  hereunder) from the date due until so paid at a rate per annum equal to
the Prime Rate (as such rate may vary from time to time) as reported in the Wall
Street Journal plus 3% (the "Default Rate").

                       (j) On the Closing Date,  Purchaser  agrees to assume and
become  responsible for (i) all of Owner's tenant  improvement  obligations (the
"Tenant Improvements") and leasing commissions ("Leasing Commissions") set forth
on Schedule Q hereto,  (ii) the landlord's  obligations under the Leases arising
from and after the  Closing  Date and  (iii)  the  obligations  of Owner or 1290
Partners   under  the  Contracts   arising  from  and  after  the  Closing  Date
(collectively,  the "Assumed Obligations").  Except for the Assumed Obligations,
Permitted  Encumbrances,  Leases,  Contracts  and  other  obligations  expressly
assumed by Purchaser  hereunder,  Owner shall remain liable and  responsible for
all of the obligations and liabilities of Owner and 1290 Partners.

                                       17
<PAGE>

                       (k) At the  Closing,  the cash  portion  of the  Security
Deposits  (including  any  interest  due thereon to the  Closing  Date) shall be
credited against the Purchase Price.

                  8. COVENANTS OF OWNER.

                       (a)  During  the period  from the date  hereof  until the
Closing Date, Owner shall:

                            (i) maintain in full force and effect the  insurance
policies  currently  in effect with  respect to the  Property  (or  replacements
continuing similar coverage);

                            (ii)  operate  and manage the  Property  in a manner
consistent with past practice;

                            (iii)  notify  Purchaser  promptly  of  any  of  the
following  which takes place on or before the Closing Date:  written  notices of
claimed material default or material  non-performance received or given by Owner
with respect to Leases to which any Major Tenant is a party ("Major  Leases") or
to which EMI  Entertainment,  ABN  Amro,  NCR  Corporation  and  Straight  Arrow
Publishing is a party,  or the  Contracts,  litigation  commenced  against or by
Owner with respect to the Property,  the Major Leases or  Contracts,  notices of
condemnation proceedings and casualty losses to the Property; and

                            (iv) use reasonable  efforts to notify  Purchaser of
any written  notices of claimed  material  default or  material  non-performance
received  or given by Owner with  respect  to any Leases not  subject to Section
8(a)(iii).

                       (b)  During  the period  from the date  hereof  until the
Closing  Date,  Owner  shall not,  to the extent the same would be binding on or
affect the Property or any owner thereof after the Closing,  without Purchaser's
prior approval (which approval shall not be unreasonably withheld or delayed):

                            (i) terminate any Lease;  amend or modify, or permit
the  cancellation  (other  than  non-material  amendments  or  modifications  or
pursuant to an express option  granted to tenant  thereunder or which any tenant
may have at law) or surrender  of, or consent to the  assignment  or  subletting
under,  any Lease  unless  contractually  bound;  or enter into any new lease or
renewal lease (unless  contractually bound on definitive terms) for space at the
Property  except  pursuant  to a leasing  schedule  agreed to in  writing by the
parties hereto;

                            (ii)  solicit,  initiate or encourage  (including by
way of  furnishing  information),  any  transaction  involving the sale or other
disposition  of  the  Property,   except  as  contemplated  in  this  Agreement,
including, without limitation, Section 8(c) hereof;

                                       18
<PAGE>

                            (iii)  affirmatively  subject  the  Property  to any
additional liens, encumbrances, covenants or easements; or

                            (iv)  sell,  transfer  or  otherwise  dispose of the
Property.

                       (c)  Purchaser  acknowledges  and agrees  that until such
time as the Loan is  funded  Owner  and the  Special  Committee  of the Board of
Directors of Owner  ("Special  Committee")  shall be permitted to participate in
discussions and negotiations, and to furnish information concerning Owner and/or
the Property in connection  with an  unsolicited  written  inquiry,  proposal or
offer  ("Unsolicited  Offer") by an  unaffiliated  third  party that the Special
Committee  reasonably  believes  (after having obtained  sufficient  preliminary
information upon which to make such  determination) that after giving due regard
to the likelihood of consummation of such  Unsolicited  Offer,  such Unsolicited
Offer would result in Owner's stockholders realizing more value for their shares
than  they  would in  connection  with  the  transactions  contemplated  by this
Agreement (such offer a "Superior Offer"), which Superior Offer involves (x) the
purchase of all or  substantially  all of the equity interests of Owner; (y) the
purchase of all or substantially  all of the Property;  and/or (z) entering into
any of the following transactions: merger, consolidation,  business combination,
recapitalization,   liquidation  and  dissolution  involving  Owner;   provided,
however,  that in any such  case,  it is the good faith  opinion of the  Special
Committee,  after  consultation  with outside  counsel and after having obtained
such preliminary information, that failure to participate in such discussion and
negotiations or to furnish such  information  would likely be inconsistent  with
the Special Committee's duties to Owner's stockholders under applicable law.

                  Owner agrees that it will promptly (and in no event later than
24 hours after receipt of an Unsolicited  Offer) notify  Purchaser (which notice
shall be provided  orally and in writing and shall identify the person or entity
making the Unsolicited  Offer and set forth its material terms) after receipt of
an Unsolicited Offer and thereafter shall keep Purchaser informed,  on a current
basis, of the status and material terms of any Unsolicited Offer.

                  The   Special   Committee   shall   recommend   that   Owner's
stockholders  vote to approve this Agreement (and this  recommendation  shall be
included in Owner's SEC Disclosure Documents (as defined in Section 8(f)) and it
may not withdraw or modify its  recommendation  in a manner adverse to Purchaser
or  recommend  that the  Owner's  stockholders  vote in favor  of or  accept  an
Unsolicited Offer. Notwithstanding the foregoing, until such time as the Loan is
funded,  the  Special  Committee  may  withdraw  or  modify  its  recommendation
described above, or may recommend that Owner's  stockholders vote in favor of or
accept an Unsolicited Offer, if:

                            (i) it is the  opinion  of  the  Special  Committee,
after consultation with outside counsel,  that failure to take such action would
likely  be  inconsistent  with the  Special  Committee's  duties to the Owner 's
stockholders under applicable law;

                            (ii) the  Special  Committee  shall  have  delivered
written  notice to Purchaser,  advising  Purchaser  that it intends to take such
action unless the terms and conditions of this Agreement are amended,  and three
(3) business  days have elapsed  following the Special  Committee's  delivery of
such notice;

                                       19
<PAGE>

                            (iii)  this  Agreement  were  amended  by  Purchaser
before the expiration of said  three-business-day  period,  and the  Unsolicited
Offer would nonetheless still constitute a Superior Offer; and

                            (iv) Owner has  complied  with its  obligations  set
forth in Section 8(c).

                       (d)  Notwithstanding  any other provision of this Section
8,  Owner  shall not accept or enter into any  agreement  concerning  a Superior
Offer for a period of at least five (5) business days after Purchaser's  receipt
of the initial notification of the Unsolicited Offer pursuant to this Section 8,
during  which  period  Owner  shall,  and shall  cause its  financial  and legal
advisors to,  negotiate with Purchaser to amend the terms and conditions of this
Agreement  as would  enable  Purchaser  to match  the  economic  terms and other
conditions  contained  in such  Superior  Offer  in order  to  proceed  with the
transactions contemplated hereby.

                       (e) Owner shall use its commercially  reasonable  efforts
to  obtain  voting  agreements  by May 16,  2002  from the  holders  of at least
sixty-seven  percent (67%) of the issued and outstanding holders of Owner Common
Stock (the "Voting  Agreements")  substantially  in the form attached  hereto as
Exhibit 6.

                       (f) As soon as  practicable  following  the  execution of
this Agreement and the Voting  Agreements,  Owner shall file with the Securities
and Exchange  Commission ("SEC") the applicable form of filing(s)  prescribed by
the SEC for  transactions  of the  type  contemplated  hereby  ("SEC  Disclosure
Documents"),  in accordance with the Securities Exchange Act of 1934, as amended
(the "Exchange Act") and the rules and  regulations  under the Exchange Act, and
Owner will deliver a written  notice to Purchaser  notifying  Purchaser that (A)
such  filing  has been made upon the date that  Owner  files the SEC  Disclosure
Documents  and (B) the date upon which it is  notified by the SEC whether or not
Owner's SEC  Disclosure  Documents  will be reviewed by the SEC.  Purchaser will
cooperate with Owner in the preparation of the SEC Disclosure Documents and will
provide Owner with all data concerning  Purchaser as is reasonably  necessary in
the opinion of Owner's  counsel in order for Owner to prepare the SEC Disclosure
Documents.  Owner  shall use all  commercially  reasonable  efforts  to  respond
promptly to any comments  made by the SEC with respect to their  respective  SEC
Disclosure Documents,  and, if applicable, to cause the SEC Disclosure Documents
to be mailed to its stockholders at the earliest  practicable date. Owner agrees
to afford  Purchaser  and its  counsel a  reasonable  opportunity  to review and
comment upon the SEC  Disclosure  Documents  prior to their being filed with the
SEC and to provide  Purchaser  and its counsel with copies of any comments  that
Owner or its counsel may receive from the SEC or its staff with respect  thereto
as soon as  practicable  after the  receipt  of such  comments.  If the  Special
Committee withdraws or modifies its approval or recommendation of this Agreement
and the consummation of the transactions  contemplated hereby in accordance with
Section 8(c) hereof,  Owner may postpone or delay the filing or mailing,  as the
case may be, of any or all of its respective SEC Disclosure Documents.

                                       20
<PAGE>

                       (g) If Owner elects not to  consummate  the  transactions
contemplated hereby and instead elects to pursue its rights set forth in Section
8(c),  then Owner shall have the right to terminate this Agreement and shall not
be in default hereunder so as to allow Purchaser to avail itself of the remedies
set forth in Section 18(b) hereof;  provided,  however,  that (A) from and after
the date hereof until 11:59 p.m. on the date that Owner files the SEC Disclosure
Documents  with the SEC, but in no event later than June 1, 2002, if Owner shall
terminate this Agreement  pursuant to its rights set forth in Section 8(c), then
Owner  shall  pay  to  Purchaser  a  fee  equal  to  Fifteen   Million   Dollars
($15,000,000);  and (B) from  and  after  12:00  a.m.  on the  date  immediately
following the date upon which the Owner files the SEC Disclosure  Documents with
the SEC, but in no event later than June 2, 2002, if Owner shall  terminate this
Agreement pursuant to its rights set forth in Section 8(c), then Owner shall pay
to Purchaser a fee equal to Twenty Million Dollars ($20,000,000),  which amounts
in  both  subclauses  (A)  and  (B)  shall  also be  deemed  to  include  all of
Purchaser's  expenses incurred in connection with the transactions  contemplated
hereby (the "Break Up Fee"). The Break Up Fee shall be payable to Purchaser upon
the earlier of: (i) five (5) business  days  following the  consummation  of the
Superior Offer; and (ii) December 31, 2002; and (iii) ninety (90) days following
the termination of a Superior Offer transaction that Owner has elected to pursue
in connection  with its  termination of this  Agreement in accordance  with this
Section 8(g);  provided,  however,  that as to subclauses  (ii) and (iii), on or
prior to the date Owner is required to pay the Break Up Fee, Owner may elect, in
lieu of paying the Break Up Fee on such date, to instead  deliver to Purchaser a
clean,  irrevocable  letter of  credit  in an  amount  equal to the Break Up Fee
issued by a New York bank money center in favor of Purchaser, with an expiration
date of July 15, 2003 and otherwise in form reasonably  acceptable to Purchaser.
The terms of such letter of credit  shall  provide  that it may be drawn upon by
Purchaser  on or after June 30,  2003 if the  payment of the Break Up Fee is not
made by Owner on or prior to June 30, 2003.  The parties  acknowledge  and agree
that the amount of the Break Up Fee is not  intended  as a penalty  and does not
have the legal effect of a penalty,  but instead serves as a reasonable estimate
by the parties of the damage  which would be  suffered by  Purchaser  in such an
event.

                       (h) Except for the Major Tenants (which shall be governed
by Section 9(a)(iv) hereof), Owner shall use commercially  reasonable efforts to
obtain an executed estoppel  certificate from each other tenant of the Building.
Each such  estoppel  certificate  shall  confirm the  existence of and pertinent
facts  surrounding  the  applicable  Lease.  If any lease has a form of estoppel
certificate attached thereto,  then Owner shall use its commercially  reasonable
efforts  to  deliver  such  form  executed  by such  tenant.  If no such form is
attached, Owner shall use commercially reasonable efforts to deliver an estoppel
letter in such form as is reasonably requested by Purchaser.

                       (i) Except for the Major Tenants (which shall be governed
by Section  9(a)(v)  hereof),  at the request of Purchaser,  Owner shall use its
commercially   reasonable   efforts   to  obtain  an   executed   subordination,
nondisturbance and attornment  agreement in connection with Purchaser's lender's
mortgage  financing  from each other tenant of the Building.  If any Lease has a
form of subordination, nondisturbance and attornment agreement attached thereto,
then Owner shall deliver such form  executed by such tenant.  If no such form is
attached,  Owner shall deliver a  subordination,  nondisturbance  and attornment
agreement in such form as is reasonably requested by Purchaser.

                       (j)  Purchaser  and Owner  hereby  covenant  and agree to
cooperate and use their respective  commercially reasonable effort to effectuate
and carry out the transactions contemplated by Section 2 hereof.

                                       21
<PAGE>

                       (k)  Purchaser  hereby  covenants  and agrees that to the
extent that Purchaser  determines  not to assume any of the Contracts  listed on
Schedule  D hereto,  that it shall be  responsible  for any and all  termination
costs and expenses  incurred by Owner  relating to  Purchaser's  decision not to
assume such Contract.

                       (l) Owner hereby covenants to cooperate with Purchaser in
endeavoring   to  minimize  the  mortgage   recording  tax  and  agrees  to  use
commercially  reasonable  efforts  to cause the holder of the  Existing  Loan to
assign the existing  mortgage to Purchaser's  designee upon repayment in full of
such Existing Loan.

                  9. CONDITIONS.

                       (a)   Conditions  to   Obligations   of  Purchaser.   The
obligations  of  Purchaser  to  effect  the  Closing  shall  be  subject  to the
fulfillment  or written  waiver by  Purchaser at or prior to the Closing Date of
the following conditions:

                            (i) Major Leases. All of the Major Leases,  plus the
leases for EMI  Entertainment,  ABN Amro,  NCR  Corporation  and Straight  Arrow
Publishing shall all be in full force and effect in all material respects on the
Closing Date.

                            (ii) Title.  The  Property  shall be subject only to
Permitted Encumbrances.

                            (iii)  Transaction  Expenses.  Owner shall have paid
all of the transaction  expenses (or made provision for the payment thereof) for
which it is responsible pursuant to Section 14.

                            (iv)   Estoppel   Certificates.   Owner  shall  have
delivered to Purchaser an executed estoppel  certificate from each tenant listed
on Schedule E (each such  tenant  referred  to as a "Major  Tenant").  Each such
estoppel  certificate  shall be dated within  forty-five  (45) days prior to the
date of  Closing,  and  shall  confirm  the  existence  of and  pertinent  facts
surrounding  the  applicable  Lease.  If any Major  Lease has a form of estoppel
certificate  attached  thereto,  then Owner shall  deliver such form executed by
such  tenant.  If no  such  form  is  attached,  Owner  shall  use  commercially
reasonable  efforts to deliver  an  estoppel  letter  reasonably  acceptable  to
Purchaser; provided, however, that in either event, Owner shall use commercially
reasonable  efforts to cause such Major Tenant to include  within such  estoppel
certificate such other information as may be reasonably requested by Purchaser.

                            (v)  Subordination  Agreements.  At the  request  of
Purchaser,  Owner shall have  delivered to Purchaser an executed  subordination,
nondisturbance and attornment  agreement in connection with Purchaser's lender's
mortgage  financing  from each Major  Tenant.  If any Major  Lease has a form of
subordination,  nondisturbance and attornment  agreement attached thereto,  then
Owner shall deliver such form executed by such Major Tenant.  If no such form is
attached,  Owner shall deliver a  subordination,  nondisturbance  and attornment
agreement in a form reasonably acceptable to Purchaser;  provided, however, that
in either event,  Owner shall use commercially  reasonable efforts to cause such
Major Tenant to include within such subordination, nondisturbance and attornment
agreement such other information as may be reasonably requested by Purchaser.

                                       22
<PAGE>

                            (vi)   Stockholder   Approval.    The   transactions
contemplated  hereby shall have been duly approved by an affirmative vote of the
holders of at least 66-2/3 % of the outstanding  shares of Owner's common stock,
par value $10.00 per share ("Owner Common Stock").

                            (vii) Pay-Off Letter.  Owner shall have delivered to
Purchaser a customary payoff letter from General Electric Capital Corporation or
other  authorized  lender  under the Existing  Loan  Agreement in respect of the
Existing Loan.

                            (viii) No Injunction. No provision of any applicable
law  or  regulation  and  no  judgment,  injunctions  then  enforceable  against
Purchaser,  order or decree shall prohibit the transactions contemplated by this
Agreement.

                            (ix)  Deliveries.  Owner  shall  have  executed  and
delivered  all of the  documents  required to be delivered  by it under  Section
15(a) hereof.

                            (x) Representations and Warranties of Owner. Owner's
representations and warranties in this Agreement will be true and correct in all
material  respects (A) as of the date of this Agreement and (B) on and as of the
Closing  Date.  On  the  Closing  Date,   Owner  will  deliver  to  Purchaser  a
certificate,  duly executed by an executive  officer of Owner,  certifying  that
Owner's representations and warranties in this Agreement are true and correct in
all   material   respects   as  of  the  Closing   Date  (the   "Owner   Closing
Certification").

Purchaser  shall  have the  right at any  time to  waive in  writing  any of the
contingencies  or conditions  set forth in this Section 9(a). If the  conditions
and/or contingencies described in this Section 9(a) are not fully and completely
satisfied on the Closing Date,  unless Purchaser elects to waive the unsatisfied
conditions  and/or  contingencies in writing,  Purchaser shall have the right to
terminate  this  Agreement,  in which  event the  Deposit  shall be  returned to
Purchaser by providing  written notice of such  termination to Owner at any time
through and including the Closing Date.

                       (b)  Conditions  to  the  Obligations  of  Owner  to  the
Closing.  The obligations of Owner to effect the Closing shall be subject to the
fulfillment  or written  waiver by Owner at or prior to the Closing  Date of the
following conditions:

                            (i) Funding.  Purchaser  shall have paid the balance
of the Purchase  Price,  after  applying any credits  against the Purchase Price
hereunder,  and authorized the release of the Deposit in accordance with Section
4(b)(i) with respect to the payment of the Purchase Price.

                            (ii) No  Injunction.  No provision of any applicable
law or regulation and no judgment,  injunctions  currently  enforceable  against
Owner,  order or decree shall  prohibit the  transactions  contemplated  by this
Agreement.

                            (iii) Owner Stockholder  Approval.  The transactions
contemplated  hereby shall have been duly approved by an affirmative vote of the
holders of at least 66-2/3 % of the outstanding shares of Owner Common Stock.

                                       23
<PAGE>

                            (iv) Transaction Expenses. Purchaser shall have paid
all or substantially all of the transaction expenses for which it is responsible
pursuant to Section 14.

                            (v)  Representations  and  Warranties  of Purchaser.
Purchaser's  representations  and  warranties in this Agreement will be true and
correct in all material respects (A) as of the date of this Agreement and (B) on
and as of the Closing Date. On the Closing Date, Purchaser will deliver to Owner
a certificate,  duly executed by an executive  officer of Purchaser,  certifying
that Purchaser's  representations  and warranties in this Agreement are true and
correct in all material respects as of the Closing Date (the "Purchaser  Closing
Certification").

                            (vi)  Deliveries.  Owner  shall  have  executed  and
delivered  all of the  documents  required to be delivered  by it under  Section
15(b) hereof.

                            (vii) Loan. The Loan shall have been consummated.

                  10. CONDITION OF THE PROPERTY; REPRESENTATIONS.

                       (a) Owner hereby  represents and warrants to Purchaser as
of the date hereof and shall be deemed to have remade such  representations  and
warranties as of the Closing as follows (each a "Representation"):

                            (i) Owner was duly formed and is validly existing as
a  corporation  in good standing  under the laws of the State of Maryland.  1290
Partners  was duly formed and is validly  existing as a limited  partnership  in
good  standing  under the laws of the State of Delaware.  Owner owns 100% of the
outstanding limited partnership  interests of 1290 Partners,  representing 99.9%
of the  partnership  interest  of 1290  Partners.  1290  GP  Corp.,  a  Delaware
corporation,  is the sole general partner of 1290 Partners, and owns 0.1% of the
limited  partnership  interests  in  1290  Partners.   Owner  owns  all  of  the
outstanding  shares of 1290 GP Corp.  Each of Owner and 1290  Partners  has full
power and authority and all licenses,  permits, and authorizations  necessary to
carry on the  business in which it is engaged and to own and use the  properties
owned and used by it in all other jurisdictions in which Owner and 1290 Partners
is transacting business except where the failure to have such licenses,  permits
and authorizations  would not have a material adverse effect on the operation of
the Property.  Owner has full power and authority to enter into and perform this
Agreement in accordance  with its terms,  and those  executing this Agreement on
its behalf are  authorized  to do so and thereby bind Owner to the terms hereof.
This Agreement and all documents executed by Owner, or its affiliates, which are
to be delivered to Purchaser at the Closing are, and at the time of the Closing,
will be, duly authorized,  executed and delivered by Owner or its affiliates, as
the case may be, and at the time of the  Closing,  will be the legal,  valid and
binding obligations of Owner or its affiliates,  as the case may be, enforceable
against Owner or such  affiliates  in  accordance  with its terms subject to the
approval of the stockholders of the Owner, and except as such enforcement may be
limited by applicable bankruptcy,  insolvency,  moratorium or other similar laws
affecting the rights of creditors generally,  and do not and, at the time of the
Closing, will not, constitute a default under any written obligation of Owner or
violate any judicial order to which Owner is subject or bound, except where such
default or violation would not have a material adverse effect on Owner's ability
to perform its obligations hereunder or thereunder.

                                       24
<PAGE>

                            (ii) Schedule C is a true, correct and complete list
of all  Leases in  effect as of the date  hereof.  Owner has  delivered  or made
available  to  Purchaser,  true and  complete  copies of all Leases set forth on
Schedule  C. Other than as set forth in  Schedule  C, to Owner's  Knowledge  (as
hereinafter  defined) (A) no tenant under a Lease is in default  under its Lease
beyond the applicable cure period; except for defaults that,  individually or in
the  aggregate,  do not have a material  adverse  effect on the operation of the
Property; (B) no tenant under a Lease has alleged, in writing or otherwise,  and
such allegation remains outstanding or remains uncured,  that the landlord under
its Lease is in default  thereunder  beyond the applicable cure period,  or that
such tenant has an existing valid  counterclaim or a right of offset against any
base rent or additional rent payable under its Lease,  except for defaults that,
individually or in the aggregate,  do not have a material  adverse effect on the
operation  of the  Property;  and (C) no tenant  under a Lease has  alleged,  in
writing  or  otherwise,  and such  allegation  remains  outstanding  or  remains
uncured,  that there is any dispute in the amount of base rent payable under its
Lease,  except for such allegations that,  individually or in the aggregate,  do
not have a material adverse effect on the operation of the Property. No consents
are  required  under  any  Leases in  connection  with the  consummation  of the
transactions contemplated by this Agreement. To Owner's Knowledge,  there are no
parties in  possession  of any  portion  or the  Property,  whether as  lessees,
tenants at sufferance,  trespassers  or otherwise,  except for the tenants under
the  Leases or their  assignees  or  subtenants  under  written  assignments  or
subleases  which  have  been  delivered  to  Purchaser.  For  purposes  of  this
Agreement,  "Owner's Knowledge" shall mean the actual knowledge of the following
individuals:  John Jacobsson, Jeremy Fitzgerald, Andrew Cohen and Steven McGann,
who are the  individuals  most  likely  to know of the  matters  to  which  such
Knowledge is referenced.

                            (iii)  Schedule D is a true,  correct  and  complete
list of the  Contracts in effect as of the date hereof.  Owner has  delivered or
made available to Purchaser true and complete  copies of all Contracts set forth
on Schedule D.

                            (iv) Schedule F is a true, correct and complete list
of the security deposits,  including cash,  certificates of deposit, and letters
of  credit,  currently  held by Owner  under the Leases in effect as of the date
hereof (the "Security Deposits").

                            (v) Schedule G is a tenant arrearage  schedule which
is true, correct and complete in all material respects as of the date hereof.

                            (vi) Except for the matters set forth on Schedule H,
there is no  action,  suit,  litigation,  hearing or  administrative  proceeding
("Actions") to which the Property, or Owner is a party, pending before any court
or other governmental authority or to Owner's Knowledge, threatened with respect
to all or any portion of the Property or Owner,  except for such Actions pending
or threatened  that,  individually  or in the aggregate,  do not have a material
adverse effect on the operation of the Property.

                            (vii) There are no  condemnation  or eminent  domain
proceedings pending, or to the best of Owner's Knowledge, threatened against the
Property.

                                       25
<PAGE>

                            (viii)  Except as set forth on Schedule I, there are
no  collective  bargaining  agreements or other  employment  agreements to which
Owner is a party (or by which Owner is bound) and relating to the Property.

                            (ix)  Except as set  forth on  Schedule  J,  neither
Owner nor the managing agent of the Property  employs any union employees at the
Property.

                            (x) To  Owner's  Knowledge,  except  as set forth on
Schedule  K, no  zoning,  building,  or other  law,  ordinance,  regulation,  or
restriction  is,  or as of the  Closing  will  be,  violated  by  the  continued
maintenance,  operation,  or use of the Property in its present  manner,  except
where such violation  would not have a material  adverse effect on the operation
of the Property.

                            (xi)  Schedule  L sets  forth  a true,  correct  and
complete  list of all  brokerage  agreements in effect as of the date hereof and
which will be  effective  after the Closing  relating  to the Leases.  Owner has
delivered to Purchaser  true,  correct and complete copies of all such brokerage
agreements listed in Schedule L (the "Brokerage Agreements").

                            (xii) Copies of insurance certificates setting forth
casualty  and rent loss  coverage  maintained  with  respect to the Property are
attached as Schedule M; the policies  evidenced by such certificates are in full
force and effect and premiums on said policies have been paid through  September
30, 2002.

                            (xiii)  The  Environmental  Report  which  Owner has
delivered to Purchaser is a true,  correct and complete copy of such report, and
to Owner's  Knowledge  is the only such  report  relating  to the  environmental
condition  of the  Property  that has been issued or  published  in the past two
years.  Owner has not received any written warning notice,  notice of violation,
administrative complaint, judicial complaint or other formal or informal written
notice  alleging  that  conditions  on  the  Property  are in  violation  of any
environmental laws, regulations, ordinances or rules.

                            (xiv) Each  tenant  under the  Leases has  commenced
payment of the base rent payable under its Lease except as set forth on Schedule
N.

                            (xv)  The  only  material  documents  evidencing  or
securing the  indebtedness  related to that certain  Loan  Agreement  among 1290
Partners,  L.P., Lenders Party thereto and General Electric Capital Corporation,
dated  December  13,  1999  ("Existing  Loan") are set forth on  Schedule O (the
"Existing Loan Documents"). The Existing Loan Documents have not been amended or
modified except as set forth on Schedule O. True, correct and complete copies of
the Existing Loan Documents have been delivered or made available to Purchaser.

                            (xvi)  1290  Partners  has fee  simple  title to the
Property,  free  and  clear  of  all  encumbrances,  except  for  the  Permitted
Encumbrances.

                            (xvii) To Owner's Knowledge,  Owner holds, and there
are  presently in effect,  all zoning,  building,  or other  licenses,  permits,
authorizations  and approvals  required for the operation of the Building by all
governmental  authorities having jurisdiction,  except where the failure to have
such licenses,  permits,  authorizations and approvals would not have a material
adverse effect on the operation of the Building.

                                       26
<PAGE>

                            (xviii) Owner has not received any written notice of
any special  assessments  contemplated  being imposed against the Property after
the date hereof,  except for such special  assessments that,  individually or in
the  aggregate,  do not have a material  adverse  effect on the operation of the
Property.

                            (xix) Owner has not received  written notice that it
is not in compliance in all material  respects with all applicable  laws, and to
Owner's Knowledge, no action, suit, proceeding, hearing, investigation,  charge,
complaint,  claim,  demand,  or written  notice has been filed with or commenced
before any governmental authority against it alleging any failure so to comply.

                            (xx) The Special  Committee has been duly authorized
by Owner to act with all  authority  of the  Board of  Directors  of Owner  with
respect  to the  negotiation  of this  Agreement  on  behalf  of such  Board  of
Directors and to recommend this Agreement to the Board of Directors.

                            (xxi) Except for the Existing  Loan, the ISDA Master
Agreement,  dated as of December  13,  1999,  by and between  1290  Partners and
Morgan Stanley  Derivative  Products,  Inc. (the "Swap"),  the Contracts and the
Tenant  Improvements  and  Leasing  Commissions,  or as  set  forth  on  Owner's
consolidated financial statements filed with the SEC, neither the Owner nor 1290
Partners have any financial  liabilities  or  obligations  other than trade debt
incurred  in the  ordinary  course  of  operating  the  Property,  all of  which
obligations and liabilities shall be paid, liquidated and/or discharged promptly
after the Closing.

                            (xxii) No capital  improvements  are currently being
made at the Property.

                            (xxiii) As of the date hereof,  there are no pending
Rent Audits, and to Owner's Knowledge no threatened Rent Audits.

                            (xxiv)  To  Owner's  Knowledge,  none  of the  Third
Party  Information  described  in Section  33(c)  below  contains  any  material
misstatements or omissions or is misleading in any material manner.

The  representations and warranties of Owner contained in this Section 10(a), as
the same may be continued by the Owner Closing Certification,  shall survive the
Closing until December 30, 2002 (the "Limitation Period").  Sections 3(c), 3(d),
13, 20, 21, 22, 23, 24, 25, 26, 27, 29, 30, 31, 32 and 33 hereof  shall  survive
the Closing and/or  termination  of this  Agreement  until the expiration of the
Limitation Period. Sections 7, 8, 14, 18 and 28 hereof shall survive the Closing
until the expiration of the Limitation Period.  Each representation and warranty
of Owner  contained in this Section 10(a),  and each post closing  obligation of
Owner set forth herein,  shall  automatically be null and void and of no further
force and effect on the last day of the Limitation Period unless, on or prior to
the last day of the  Limitation  Period,  Purchaser  shall  in good  faith  have
provided Owner with a written  notice  alleging that Owner shall be in breach of
such representation, warranty or obligation, and specifying in reasonable detail
the nature of such  breach.

                                       27
<PAGE>

Purchaser  shall allow Owner  thirty (30) days after its notice  within which to
cure such  breach.  If Owner  fails to cure such  breach  after  written  notice
thereof,  Purchaser's  sole remedy shall be to commence a legal  proceeding  for
damages   against  Owner  alleging  that  Owner  shall  be  in  breach  of  such
representation,  warranty or obligation and that  Purchaser  shall have suffered
actual  damages  ("Damages")  as  a  result  thereof  (a  "Proceeding"),   which
Proceeding  must be  commenced,  if at all,  within  thirty  (30) days after the
expiration of the Limitation Period; provided, however, that Owner shall have no
liability  to Purchaser  or any of its  successors  or assigns with respect to a
breach or breaches of its representations,  warranties, obligations or otherwise
hereunder if Purchaser  had actual  knowledge  prior to the Closing Date of such
breach,  breaches or other liability  relating to such Damages regardless of the
amount of such Damages resulting from such breach,  breaches or other liability;
provided, however, that Owner shall have no liability to Purchaser or any of its
successors or assigns  hereunder for Damages in excess of $10,000,000  (less any
amounts paid or payable by Owner in accordance  with the terms of this Agreement
following the Closing Date). In consideration  for such limitation on liability,
Owner agrees that  following  Closing,  Owner (or any  successor  entity)  shall
maintain a tangible net worth of at least  $10,000,000 (less any amounts paid or
payable by Owner in accordance  with the terms of this  Agreement  following the
Closing Date) until the later of (A) December 31, 2002, if no  Proceedings  have
been  commenced  by  December  30,  2002;  or (B) the  final  settlement  of all
Proceedings,  if any  Proceedings  have been commenced and remain  unresolved by
December 30, 2002;  provided,  however,  that if a dispute  arises under Section
7(i) hereof with respect to the  Reconciliation  Statement,  and such dispute is
not resolved by December 31, 2002,  then Owner will  maintain  until the date of
final  resolution  of such  dispute a tangible  net worth equal to the  disputed
amount plus a  reasonable  sum  necessary to pay any fees or expenses it may owe
under Section 7(i).  Notwithstanding  the foregoing,  Owner shall be relieved of
any liability hereunder with respect to representations made by Owner in Section
10(a)(ii)  concerning  any  tenant's  Lease  to  the  extent  that  such  tenant
independently  confirms the content of such  representation in a tenant estoppel
certificate delivered to Purchaser on or prior to the Closing.

                       (b) Purchaser hereby  represents and warrants to Owner as
of the date hereof and shall be deemed to have remade such  representations  and
warranties as of the Closing Date that:

                            (i) Purchaser is a Delaware limited  partnership and
has full  power and  authority  to enter  into and  perform  this  Agreement  in
accordance  with its terms and those  executing this Agreement on its behalf are
authorized  to do so and  thereby  bind  Purchaser  to the  terms  hereof.  This
Agreement and all documents  executed by Purchaser  which are to be delivered at
the  Closing  are,  and at the time of the  Closing  will be,  duly  authorized,
executed and  delivered by Purchaser  and at the time of the Closing will be the
legal, valid and binding obligations of Purchaser, enforceable against Purchaser
in accordance with their  respective  terms,  except as such  enforcement may be
limited by applicable bankruptcy,  insolvency,  moratorium or other similar laws
affecting the rights of creditors generally.

                            (ii)  Purchaser is not  acquiring  the Property with
the assets of an  employee  benefit  plan (as  defined  in  Section  3(3) of the
Employee Retirement Income Security Act of 1974, as amended  ("ERISA")),  or, if
plan assets  will be used to acquire the  Property,  Purchaser  will  deliver to
Owner at the Closing a certificate  containing such factual  representations  as
shall permit Owner and its counsel to conclude  that no  prohibited  transaction
would result from the  consummation  of the  transactions  contemplated  by this
Agreement.  Purchaser is not a "party in interest" within the meaning of Section
3(3) of ERISA with respect to any beneficial owner of Owner.

                                       28
<PAGE>

                            (iii)  This   Agreement  and  all  documents  to  be
executed by  Purchaser  at the Closing do not and will not  contravene  with any
provision of the organizational and formation documents of Purchaser, constitute
a default  under any written  obligation  of  Purchaser  or violate any judicial
order to which  Purchaser  is subject  or bound,  except  where such  default or
violation  would not have a material  adverse effect on  Purchaser's  ability to
perform its obligations hereunder or thereunder.

                            (iv)  There  are  no  actions,  suits,  litigations,
hearings or  administrative  proceedings  pending or to  Purchaser's  Knowledge,
threatened to which Purchaser or any of its partners is a party before any court
or other  governmental  authority which would have a material  adverse effect on
the  transactions   contemplated   hereby.   For  purposes  of  this  Agreement,
"Purchaser's  Knowledge"  shall  mean  the  actual  knowledge  of the  following
individuals:  Stephen J. Zoukis,  Christoph A. Kahl or Matt M. Bronfman, who are
the  individuals  most likely to know of the matters to which such  Knowledge is
referenced.

                            (v)  Purchaser  has  sufficient   cash  on  hand  or
enforceable  financial  commitments from credible sources to allow it to pay the
Purchase Price,  consummate the transactions  contemplated  hereby,  and pay all
related fees and expenses as set forth herein.

                            (vi) Purchaser  hereby  acknowledges  that Purchaser
may have to bear the  economic  risk of its  investment  in the  Property for an
indefinite period of time.

                            (vii)  Purchaser  understands  that an investment in
the Property involves substantial risks. Purchaser understands the risks of, and
other considerations relating to, the acquisition of the Property. Purchaser, by
reason of its business and financial experience,  together with the business and
financial  experience of those persons,  if any,  retained by it to represent or
advise  it  with  respect  to its  investment  in the  Property,  (i)  has  such
knowledge,  sophistication  and experience in financial and business matters and
in making investment decisions of this type that it is capable of evaluating the
merits and risks of an  investment  in the  Property  and of making an  informed
investment  decision;  (ii) is capable of  protecting  its own  interest  or has
engaged  representatives  or advisors to assist it in protecting  its interests;
and (iii) is capable of bearing the economic risk of such investment.

                            (viii)  Purchaser  need not give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any person
in connection  with the  consummation of the  transactions  contemplated by this
Agreement.

                            (ix) The representations and warranties of Purchaser
contained in this Section  10(b),  as the same may be continued by the Purchaser
Closing Certification, shall survive the Closing until December 30, 2002.

                                       29
<PAGE>

                  11.  DAMAGE AND DESTRUCTION.

                       (a) If all or any part of the Building is damaged by fire
or other casualty  occurring  following the date hereof and prior to the Closing
Date, then:

                            (i) if there is not Material  Damage,  neither party
shall  have  the  right  to  terminate  this  Agreement  and the  parties  shall
nonetheless  consummate  this  transaction  in accordance  with this  Agreement,
without any  abatement of the Purchase  Price or any  liability or obligation on
the part of Owner by reason of said destruction or damage. In such event, Owner,
upon receipt of the insurance  proceeds  referred to in Section 11(a)(ii) below,
shall  commence and proceed  with any repair or  restoration  work  necessary to
perform repairs and/or rebuild the Building to substantially  the same condition
as it  existed  prior to the  occurrence  of any fire or other  casualty  to the
Property.

                            (ii) Owner has the right to make a claim for, settle
and retain any casualty insurance proceeds received under the casualty insurance
policies in effect with respect to the  Property,  in  connection  with the work
contemplated  under the preceding  sentence,  subject to Purchaser's  reasonable
approval  of any  such  settlement.  Any  contracts  entered  into by  Owner  in
accordance  with the work  contemplated  hereunder  pursuant to the terms hereof
shall be deemed to be "Contracts"  for purposes of this  Agreement.  If any such
casualty  occurs  prior to the  Closing  and the  insurance  claim with  respect
thereto has not been settled or if settled the work has not been completed as of
the Closing, Owner shall be relieved of the obligation to repair, restore and/or
rebuild the  Building  and the Closing  Statement  shall  reflect the  following
credits in favor of Owner and Purchaser:  (x) in favor of Purchaser,  the amount
of the deductible on any casualty insurance policy in effect with respect to the
Property  (but in no event in excess of the  amount of the  loss),  (y) if Owner
shall have  actually  received  on or prior to the  Closing  Date any  insurance
proceeds in connection  with such casualty,  in favor of Purchaser the amount of
any such insurance  proceeds  actually received by Owner in connection with such
casualty under any such casualty  insurance policy less the reasonable  expenses
incurred by Owner in  collecting  such  proceeds  and  performing  the repair or
restoration  work and (z) in favor of Owner,  an amount equal to the  reasonable
expenses incurred by Owner prior to the Closing Date in collecting the insurance
proceeds and performing the repair or restoration  work in connection  with such
casualty,  to the  extent not  previously  reimbursed  to Owner  from  insurance
proceeds.  Any  insurance  proceeds  not  received by Owner and not expended for
repairs or restoration work will be assigned to Purchaser at Closing.

                            (iii) if there is Material  Damage,  Purchaser shall
have  the  option,   exercisable   within  ten  (10)  business  days  after  the
determination  of the cost of repair or restoration  pursuant to subsections (c)
and (d) below,  to terminate  this  Agreement by  delivering  notice  thereof to
Owner,  whereupon the Deposit shall be returned to Purchaser and this  Agreement
shall be deemed  canceled and of no further  force or effect,  and neither party
shall have any further rights or liabilities  against or to the other except for
such  provisions  which are expressly  provided in this Agreement to survive the
termination  hereof. If a fire or other casualty  described in this clause (iii)
shall occur and Purchaser  shall not timely elect to terminate  this  Agreement,
then Purchaser and Owner shall  consummate  this  transaction in accordance with
this Agreement,  without any abatement of the Purchase Price or any liability or
obligation on the part of Owner by reason of said  destruction or damage and, in
such event,  the casualty shall be deemed not to have caused Material Damage and
the provisions of paragraphs (i) and (ii) above shall govern.

                                       30
<PAGE>

                       (b) As used herein the term "Material  Damage" shall mean
damage the estimated  cost of repair or  restoration  of which  exceeds  Fifteen
Million Dollars ($15,000,000).

                       (c)  The  estimated   cost  to  repair   and/or   restore
contemplated  in Section 11(a) above shall be established  by written  estimates
obtained by Owner from independent  contractors and completed within thirty (30)
days from the date of casualty and Owner shall promptly  provide  Purchaser with
any such estimates upon its receipt thereof. The Closing Date may be extended by
either  Purchaser  or Owner up to a maximum  extension of ninety (90) days or as
reasonably  required to obtain such  estimates  (including the resolution of any
arbitration   required   pursuant  to  Section  11(d)  hereof),   determine  the
availability  and amount of  insurance  proceeds  and give the notices  required
under this Section 11;  provided,  however,  that rather than extend the Closing
Date,   Purchaser   shall  have  the  option  to  consummate  the   transactions
contemplated  hereby and  assume  the  obligation  to repair  and  restore  such
damages,  in which event the  provisions  of the last two  sentences  of Section
11(a)(ii) shall be applicable.  Owner and Purchaser shall cooperate and exercise
due diligence to promptly obtain damage estimation and insurance proceeds.

                       (d) The  provisions  of this Section 11 supersede any law
applicable  to the Property  governing  the effect of fire or other  casualty in
contracts for the purchase and sale of real property or interests  therein.  Any
disputes under this Section 11 as to the cost of repair or restoration  shall be
resolved by expedited  arbitration before a single arbitrator acceptable to both
Owner and Purchaser in their reasonable judgment in accordance with the rules of
the American Arbitration Association; provided, that if Owner and Purchaser fail
to agree on an arbitrator  within five days after a dispute arises,  then either
party may request the  American  Arbitration  Association  office in New York to
designate an arbitrator.  Such arbitrator  shall be an independent  architect or
engineer  having at least ten (10) years of  experience in the  construction  of
office  buildings in New York.  The  determination  of the  arbitrator  shall be
conclusive  and  binding  upon the  parties.  The  costs  and  expenses  of such
Arbitrator shall be borne by the non-prevailing party.

                  12.  CONDEMNATION.

                       (a)  If,  prior  to the  Closing  Date,  any  part of the
Property is taken (other than a temporary taking),  or if Owner shall receive an
official notice from any governmental authority having eminent domain power over
the Property of its intention to take, by eminent domain proceeding, any part of
the Property (a "Taking"), then:

                            (i) if there is not a Material Taking, neither party
shall  have  any  right to  terminate  this  Agreement,  and the  parties  shall
nonetheless  consummate  this  transaction  in accordance  with this  Agreement,
without any  abatement of the Purchase  Price or any  liability or obligation on
the part of Owner by reason of such  Taking;  provided,  that (x) if Owner shall
have  actually  received  on or prior  to the  Closing  Date any  award or other
proceeds of such Taking,  Purchaser  shall be entitled to a credit at Closing in
an amount equal to the proceeds actually  collected by Owner as a result of such
Taking less the reasonable  expenses  incurred by Owner in connection  with such
Taking  and (y) Owner  shall be  entitled  to a credit at  Closing  equal to the
reasonable  expenses  incurred by Owner prior to the Closing Date in  connection
with such  Taking,  to the extent not  previously  reimbursed  from any award or
proceeds actually collected by Owner on or prior to the Closing Date.

                                       31
<PAGE>

                            (ii) if there is a Material Taking,  Purchaser shall
have the  option,  exercisable  within ten (10) days after  receipt of notice of
such  Taking,  time  being  of the  essence,  to  terminate  this  Agreement  by
delivering  notice thereof to Owner,  whereupon the Deposit shall be returned to
Purchaser and this Agreement shall be deemed canceled and of no further force or
effect,  and neither party shall have any further rights or liabilities  against
or to the other except  pursuant to the provisions of this  Agreement  which are
expressly  provided to survive the termination  hereof. If a Taking described in
this clause (ii) shall occur and Purchaser shall not within such ten (10) period
elect to terminate this  Agreement,  then  Purchaser and Owner shall  consummate
this transaction in accordance with this Agreement  without any abatement of the
Purchase  Price or any liability or obligation on the part of Owner by reason of
such Taking and the proviso in clause (i) above shall govern the amount credited
at Closing.

                       (b) As used herein the term "Material  Taking" shall mean
a Taking,  the estimated cost of repair or restoration of which exceeds  Fifteen
Million Dollars ($15,000,000).

                       (c) The  provisions  of this Section 12 supersede any law
applicable to the Property governing the effect of condemnation in contracts for
the purchase and sale of real property or interests therein.  Any disputes under
this Section 12 as to whether the Taking is a Material  Taking shall be resolved
by expedited arbitration before a single arbitrator acceptable to both Owner and
Purchaser  in their  reasonable  judgment  in  accordance  with the rules of the
American Arbitration  Association;  provided that if Owner and Purchaser fail to
agree on an  arbitrator  within  five days after a dispute  arises,  then either
party may request the  American  Arbitration  Association  office in New York to
designate an  arbitrator.  Such  arbitrator  shall be an  independent  architect
having at least  ten (10)  years of  experience  in the  construction  of office
buildings in New York. The costs and expenses of such Arbitrator  shall be borne
by non-prevailing party.

                  13.  BROKERS AND ADVISORS.

                       (a)  Purchaser  represents  and warrants to Owner that it
has not  dealt or  negotiated  with,  or  engaged  on its own  behalf or for its
benefit,  any  broker,  finder,  consultant,  advisor,  or  professional  in the
capacity  of a broker  or  finder  (each a  "Broker")  in  connection  with this
Agreement or the transactions  contemplated  hereby.  Purchaser hereby agrees to
indemnify,  defend and hold Owner and the other Owner Related  Parties  harmless
from and against any and all claims,  demands,  causes of action,  losses, costs
and  expenses   (including   reasonable   attorneys'   fees,   court  costs  and
disbursements) arising from any claim for commission, fees or other compensation
or  reimbursement  for expenses made by a Broker  engaged by or claiming to have
dealt with  Purchaser in  connection  with this  Agreement  or the  transactions
contemplated hereby.

                       (b) Except as set forth on Schedule  P, Owner  represents
and  warrants  to  Purchaser  that Owner has not dealt or  negotiated  with,  or
engaged on their own behalf or for their benefit,  any Broker in connection with
this Agreement or the transactions  contemplated  hereby. Owner hereby agrees to
indemnify,  defend and hold Purchaser and its direct and indirect  shareholders,
officers, directors, trustees, partners, principals, members, employees, agents,
contractors  and any successors or assigns of the  foregoing,  harmless from and
against  any and all  claims,  demands,  causes  of  action,  losses,  costs and
expenses (including  reasonable  attorneys' fees, court costs and disbursements)
arising  from  any  claim  for  commission,   fees  or  other   compensation  or
reimbursement  for  expenses  made by any Broker  engaged by or claiming to have
dealt  with  Owner  in  connection  with  this  Agreement  or  the  transactions
contemplated hereby.

                                       32
<PAGE>

                  14.  TRANSACTION COSTS.

                       (a) Owner shall be responsible for (i) payment in full of
the  Existing  Loan and all  amounts  secured by the  Existing  Loan  Documents,
including without  limitation all prepayment costs incurred in the prepayment of
the  Existing  Loan and all costs of  terminating  the  Swap;  (ii) the costs of
Owner's  legal  counsel,  advisors  and other  professionals  employed  by it in
connection with the purchase and sale of the Property and the other transactions
contemplated  by this  Agreement;  (iii)  any  recording  fees  relating  to its
obligations to remove Title Objections;  and (iv) all conveyance  closing costs,
including state and local transfer, stamp or deed taxes.

                       (b) Purchaser  shall be responsible for (i) the costs and
expenses  associated with its due diligence,  (ii) the costs and expenses of its
legal  counsel,  advisors and other  professionals  employed by it in connection
with the sale of the Property and the other  transactions  contemplated  by this
Agreement, (iii) all mortgage recording taxes due in connection with Purchaser's
financing and costs of the owner's and lender's policies of title insurance, and
other  endorsements  and (iv) any additional  attorneys'  fees and other related
costs  incurred  by Owner  with  respect to  preparing  and  finalizing  the SEC
Disclosure Documents, including, without limitation,  revisions thereto required
in order to respond to any  review  by, and  comments  of, the SEC to the extent
such  additional  fees and  costs  relate  to  AP-1290  being a  partner  of the
Purchaser.

                  15.  DELIVERIES TO BE MADE ON THE CLOSING DATE.

                       (a)  Owner  Deliveries.  It  is  contemplated  that  this
transaction shall be closed by means of a so-called New York Style Closing, with
the  concurrent  delivery  of the  documents  of title,  transfer  of  interest,
delivery of the  marked-up  title  commitment,  and the payment of the  Purchase
Price. At Closing, Owner shall deliver to Purchaser the following:

                            (i) bargain and sale deed without  covenant  against
grantor's  acts, duly executed and  acknowledged  by Owner, in proper  statutory
form for  recording,  so as to  convey  to  Purchaser  fee  simple  title to the
Property, subject to and in accordance with the provisions of this Agreement;

                            (ii) a good certified  check to the order of the New
York City  Department of Finance in the amount of the Real Estate  Transfer Tax,
if any,  due in  connection  with the  delivery of the Deed in  accordance  with
Article 31 of the New York State Tax Law, and a return, if any be required, duly
executed and  acknowledged  by Owner;  and Purchaser  also agrees to execute and
acknowledge said return and to cause the check and the return to be delivered to
the Register of the City of New York promptly after the Closing;

                                       33
<PAGE>

                            (iii) a good certified check to the order of the New
York City  Department  of Finance for the amount of the Real  Property  Transfer
Tax, if any,  in  accordance  with Title 11 of Chapter 21 of the  Administrative
Code of the City of New York and the return required by the said statute and the
regulations  issued  pursuant  to  the  authority  thereof,  duly  executed  and
acknowledged  by Owner;  and Purchaser  agrees to execute and  acknowledge  said
return and to cause the check and the return to be  delivered to the Register of
the City of New York promptly after the Closing;

                            (iv) A bill of sale for the  Personalty  from Owner,
duly executed by Owner.

                            (v) An  assignment  and  assumption  of Leases  from
Owner, duly executed and acknowledged by Owner.

                            (vi) An  assignment by Owner of all  warranties  and
permits affecting the Property, duly executed by Owner.

                            (vii) An assignment and assumption of Contracts from
Owner, duly executed by Owner.

                            (viii) All  architectural  and engineering  drawings
and specifications,  utilities layout plans, topographical plans and the like in
Owner's  possession  and owned by Owner used in the  construction,  improvement,
alteration or repair of the Building.

                            (ix)  Original   counterparts   of  all  Leases  and
Contracts, and all other books, records and files maintained by Owner's property
manager relating to the construction,  leasing, operation and maintenance of the
Property.

                            (x) A notice  to each  tenant,  executed  by  Owner,
advising of the sale of the Property and directing  that rent and other payments
thereafter be sent to Purchaser at the address provided by Purchaser at Closing.

                            (xi) Such  affidavits  or  letters of  indemnity  as
Purchaser's title insurer shall require in order to issue, without extra charge,
an  owner's  policy  of  title  insurance  free of any  exceptions  for  unfiled
mechanics' or materialmen's  liens for work performed by Owner prior to Closing,
or for rights of parties in possession  other than  pursuant to the Leases,  and
such  documents,  certificates,  resolutions and other evidences of authority as
Purchaser's  title insurer may require as a condition to the issuance of a title
insurance policy.

                            (xii) A  nonforeign  affidavit  as  required  by the
Foreign  Investment  in Real  Property  Tax Act  ("FIRPTA"),  as  amended,  duly
executed by Owner.

                            (xiii)  The  Owner   Closing   Certification,   duly
executed by Owner.

                            (xiv)   Evidence   of  the   authorization   of  the
transactions  contemplated hereby, including a Secretary of State certified copy
of Owner's limited partnership certificate,  a certificate of good standing from
such  Secretary  of  State  and  any  required   partnership   consents  to  the
transactions contemplated hereby.

                                       34
<PAGE>

                            (xv) The Closing Statement, duly executed by Owner.

                            (xvi)  With  respect  to  the   Security   Deposits,
Purchaser  shall receive a credit  against the Purchase Price in an amount equal
to any cash  Security  Deposits,  together  with any interest due thereon to the
Closing Date. All non-cash  Security  Deposits shall be transferred to Purchaser
at Closing and Seller shall  cooperate  with  Purchaser in  effectuating a valid
assignment  and  transfer  of any  letters  of credit and other  securities  and
guaranties constituting a part of the Security Deposits.

                            (xvii)   All   other   instruments   and   documents
reasonably   required  to  effectuate   this  Agreement  and  the   transactions
contemplated thereby.

                       (b) Purchaser  Deliveries.  At Closing,  Purchaser  shall
deliver to Owner the following:

                            (i) In accordance with Owner's instructions,  a wire
transfer  in the  amount  of the  Purchase  Price  (subject  to the  adjustments
provided for in this Agreement), transferred to the order or account of Owner or
to such other  person or persons as Owner  shall  designate  in writing no later
than two (2) business days prior to the Closing.

                            (ii) The Purchaser Closing Certification.

                            (iii)  The   assignment  and  assumption  of  Leases
referred to in Section 15(a) above, duly executed and acknowledged by Purchaser.

                            (iv) The  assignment  and  assumption  of  Contracts
referred to in Section 15(a) above, duly executed and acknowledged by Purchaser.

                            (v) The  assignment  and  assumption  of the  Tenant
Improvements  and  Leasing  Commissions  referred  to in  Section 4 above,  duly
executed and acknowledged by Purchaser.

                            (vi) A joint  direction  letter to the Escrow  Agent
authorizing the release of the Deposit to Owner.

                            (vii) All other instruments and documents reasonably
required to effectuate this Agreement and the transactions contemplated thereby.

                  16.  CLOSING DATE.

                       (a) The transactions  contemplated by this Agreement (the
"Closing")  shall occur, on a date selected by Purchaser by giving no fewer than
three (3)  business  days  notice to Owner,  which date shall be  designated  by
Purchaser following approval of the transactions contemplated herein by not less
than 66 2/3 % of the outstanding shares of Owner Common Stock, and:

                                       35
<PAGE>

                  (x)  shall not be later  than  July 15,  2002 if the SEC shall
                  have  notified  Owner that it will not review and comment upon
                  the SEC Disclosure Documents; and

                  (y) shall not be later than  August 28,  2002 if the SEC shall
                  have  notified  Owner that it will review and comment upon the
                  SEC Disclosure Documents.

at 10:00 a.m.  (such date,  or the date set for the Closing if  Purchaser  shall
elect  to  extend  this  date  pursuant  to the  terms  of this  Agreement,  the
"Scheduled  Closing Date"; the actual date of the Closing,  the "Closing Date"),
at the offices of Akin, Gump,  Strauss,  Hauer & Feld LLP in New York, New York,
or such  other  place as  Purchaser  and Owner  shall  mutually  agree.  Each of
Purchaser  and Owner shall have the right to extend the  Scheduled  Closing Date
for a period or periods not to exceed five (5) business  days in addition to the
extension rights set forth in Sections 16(b) and 16(c) below.

                       (b) Purchaser  Right to Extend  Closing.  Purchaser shall
have the right to extend the deadline for the Closing Date to August 31, 2002 if
the SEC shall have  notified  Owner that it will not review and comment upon the
SEC Disclosure  Documents,  by giving  written  notice to Owner (the  "Purchaser
Extension Notice") within three (3) business days following delivery by Owner of
written  notice to  Purchaser  that the SEC has  determined  not to  review  and
comment upon the SEC Disclosure Documents, and, simultaneously with the delivery
of  such  Purchaser  Extension  Notice,  Purchaser  shall  deliver  the  sum  of
($15,000,000)  Fifteen  Million  Dollars to Escrow Agent,  as an addition to the
Deposit, to be governed pursuant to the terms of Article 4 hereof

                       (c) Owner Right to Extend  Closing.  Owner shall have the
right to extend the deadline for the Closing Date:

                  (i) to July 22,  2002,  if the SEC shall have  notified  Owner
                  that it will not review and  comment  upon the SEC  Disclosure
                  Documents,  by giving written notice to Purchaser on or before
                  June 27, 2002;

                  (ii)  to  a  date  not  later  than  October  7,  2002,  on  a
                  day-for-day  corresponding  basis to the  extent it shall take
                  the SEC more than fifty (50) days  after it has  notified  the
                  Public  Company that it intends to review and comment upon the
                  SEC Disclosure Documents

                       (d) Convene Meeting of Stockholders. Owner agrees that it
shall, as promptly as practicable,  give notice of, convene,  and hold a meeting
of its  stockholders  entitled  to vote on the  adoption  of this  Agreement  in
accordance with  applicable  law, for the purpose of obtaining the approval,  by
the stockholders of the Owner, of this agreement and Owner's  performance of the
obligations set forth herein.

                  17.  NOTICES.

                  Notwithstanding   anything  to  the  contrary   which  may  be
contained  in  this  Agreement,   all  notices,   demands,   requests  or  other
communications  (collectively,  "Notices")  required to be given or which may be
given  hereunder  shall be in  writing  and  shall be sent by (a)  certified  or
registered mail,  return receipt  requested,  postage  prepaid,  or (b) national
overnight  delivery service,  or (c) facsimile  transmission  (provided that the
original  shall be  simultaneously  delivered  by  national  overnight  delivery
service or personal delivery), or (d) personal delivery, addressed as follows:

                                       36
<PAGE>

                       (i)  If to Owner or 1290 Partners, to:

                            Oaktree Capital  Management,  LLC
                            1301 Avenue of the Americas
                            34th Floor
                            New York, NY 10019
                            Attention: Russel Bernard
                            Fax: (212)284-1986

                            with a  copy  to  (which  shall  not  constitute
                            notice):

                            Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                            590 Madison Avenue
                            New York, NY 10019
                            Attention: Louis Vitali
                            Fax: (212) 872-1002

                       (ii) If to Purchaser, to:

                            Jamestown 1290 Partners
                            Two Paces West, Suite 1600
                            2727 Paces Ferry Road
                            Atlanta, Georgia 30339
                            Attention: Stephen J. Zoukis and Matt M. Bronfman
                            Fax: (770) 805-1001

                            with a copy to (which shall not constitute notice):

                            King & Spalding
                            1185 Avenue of the Americas
                            New York, New York  10036
                            Attention:  William B. Fryer
                            Fax: (212) 556-2222

                            with a copy to (which shall not constitute notice):

                            Holland & Knight LLP
                            1201 W. Peachtree Street, NE
                            Suite 2000
                            Atlanta, GA 30309
                            Attention:  A. Summey Orr III, Esq.
                            Fax: (404) 881-0470

                                       37
<PAGE>

                  Any Notice so sent by certified or registered  mail,  national
overnight  delivery  service or personal  delivery  shall be deemed given on the
date of receipt or refusal as indicated on the return receipt, or the receipt of
the national overnight delivery service or personal delivery service. Any Notice
sent by facsimile  transmission shall be deemed given when received as confirmed
by the telecopier electronic  confirmation receipt. A Notice may be given either
by a party or by such party's attorney. Owner or Purchaser may designate, by not
less than five (5) business days' notice given to the others in accordance  with
the terms of this Section 17, additional or substituted  parties to whom Notices
should be sent hereunder.

                  18.  DEFAULT BY PURCHASER OR OWNER.

                       (a) If, other than as a result of Owner's  default  under
Section 18(b) hereof or the permitted  termination  of this  Agreement by either
party hereto, Purchaser shall default in any material respect in the performance
of any of its other  obligations to be performed on or prior to the Closing Date
and such default shall  continue for five (5) business days after written notice
to Purchaser,  Owner's sole remedy by reason  thereof shall be to terminate this
Agreement and, upon such termination, Owner, with respect to such default, shall
be entitled to retain the Deposit as liquidated damages for Purchaser's  default
hereunder, it being agreed that the damages by reason of Purchaser's default are
difficult, if not impossible, to ascertain.

                       Notwithstanding  anything  herein to the contrary,  in no
event shall the failure of Purchaser to consummate the transactions contemplated
herein as a result  of the  failure  of one or more  conditions  to  Purchaser's
obligation to close  contained in Section 9(a) constitute a default by Purchaser
hereunder.

                       (b) If other  than as a  result  of  Purchaser's  default
under  Section  18(a)  hereof,  pursuant  to  Section  8(c),  or  the  permitted
termination of this Agreement by either party hereto, Owner shall default in any
material  respect in any of its  obligations  to be performed on or prior to the
Closing Date,  and such default shall  continue for five (5) business days after
written notice to Owner, Purchaser as its sole remedy by reason thereof (in lieu
of prosecuting  an action for damages or proceeding  with any other legal course
of conduct,  the right to bring such actions or proceedings  being expressly and
voluntarily  waived by Purchaser to the extent legally  permissible)  shall have
the right  subject  to the other  provisions  of this  Section  18(b) to seek to
obtain specific performance of Owner's obligations hereunder,  provided that any
action for specific performance shall be commenced within thirty (30) days after
such  default,  and if  Purchaser  prevails  thereunder,  Owner shall  reimburse
Purchaser  for all  reasonable  legal  fees,  court  costs and other  reasonable
out-of-pocket  costs arising from such  default;  provided,  however,  that if a
court of  competent  jurisdiction  determines  in a  non-appealable  order  that
specific  performance  against  Owner is not an available  remedy to  Purchaser,
Purchaser shall be entitled to receive a return of the Deposit,  and, if a court
of competent  jurisdiction  determines in a  non-appealable  order that specific
performance  against  Owner is not an available  remedy to Purchaser as a direct
result  of the  willful  misconduct  or bad  faith of  Owner,  to pursue a claim
against  Owner for actual  damages  incurred  by  Purchaser  as a result of such
default.

                                       38
<PAGE>

                       (c) Notwithstanding  anything herein to the contrary,  in
no event shall the failure of Owner to consummate the transactions  contemplated
herein  as a  result  of the  failure  of  one or  more  conditions  to  Owner's
obligation  to close  contained  in Section  9(b)  constitute a default by Owner
hereunder.

                  19.  FIRPTA COMPLIANCE.

                  Owner  shall  comply  with the  provisions  of  FIRPTA.  Owner
acknowledges  that  Section 1445 of the Internal  Revenue Code  provides  that a
transferee of a United  States real  property  interest must withhold tax if the
transferor is a foreign person.  To inform  Purchaser that withholding of tax is
not required upon the  disposition of a United States real property  interest by
Owner,  Owner hereby  represents and warrants that Owner is not a foreign person
as that term is defined in the Internal Revenue Code and Income Tax Regulations.
On the Closing  Date,  Owner shall deliver to Purchaser a  certification  as the
non-foreign  status of Owner in the form of Exhibit 7, and shall comply with any
temporary or final regulations promulgated with respect thereto and any relevant
revenue procedures or other officially  published  announcements of the Internal
Revenue Service of the U.S. Department of the Treasury in connection therewith.

                  20.  ENTIRE AGREEMENT.

                  This Agreement and the Confidentiality  Agreement contains all
of the terms agreed upon between Owner and Purchaser with respect to the subject
matter hereof,  and all prior agreements  (including,  without  limitation,  the
Original  Purchase  and Sale  Agreement),  understandings,  representations  and
statements,  oral or written,  between  Owner and Purchaser are merged into this
Agreement.

                  21.  AMENDMENTS.

                  This  Agreement  may not be changed,  modified or  terminated,
except by an instrument executed by Owner and Purchaser.

                  22.  WAIVER.

                  No waiver by either  party of any  failure  or  refusal by the
other party to comply with its obligations shall be deemed a waiver of any other
or subsequent failure or refusal to so comply.

                  23.  PARTIAL INVALIDITY.

                  If any term or provision of this Agreement or the  application
thereof  to any  person or  circumstance  shall,  to any  extent,  be invalid or
unenforceable,  the remainder of this Agreement, or the application of such term
or provision to persons or circumstances other than those as to which it is held
invalid  or  unenforceable,  shall not be  affected  thereby,  and each term and
provision of this Agreement  shall be valid and shall be enforced to the fullest
extent permitted by law.

                                       39
<PAGE>

                  24.  SECTION HEADINGS.

                  The headings of the various  sections of this  Agreement  have
been  inserted  only for the purposes of  convenience,  and are not part of this
Agreement  and shall not be deemed in any manner to modify,  explain,  expand or
restrict any of the provisions of this Agreement.

                  25.  GOVERNING LAW; SUBMISSION TO JURISDICTION.

                  This  Agreement  shall be governed by the laws of the State of
New York without giving effect to conflict of laws principles thereof. Purchaser
submits to the  jurisdiction  of any state or federal court sitting in New York,
New York, in any action  arising out of or relating to this Agreement and agrees
that all claims in respect of the action may be heard and determined in any such
court.  Purchaser also agrees not to bring any action arising out of or relating
to this Agreement in any other court.  Purchaser agrees that a final judgment in
any action so brought  will be  conclusive  and may be enforced by action on the
judgment or in any other manner provided at law or in equity.  Purchaser  waives
any defense of  inconvenient  forum to the  maintenance of any action so brought
and waives any bond,  surety,  or other  security  that might be required of any
other party with respect thereto.

                  26.  PARTIES; ASSIGNMENT AND RECORDING.

                       (a) This Agreement and the various rights and obligations
arising  hereunder  shall inure to the benefit of and be binding  upon Owner and
Purchaser and their respective successors and permitted assigns.

                       (b) Purchaser  may not assign or otherwise  transfer this
Agreement or any of its rights or obligations hereunder (or any of the direct or
indirect  ownership  interests  in  Purchaser  if the  primary  purpose  of such
transfer is to transfer Purchaser's rights under this Agreement),  without first
obtaining  Owner's  consent  thereto;  provided,  that Purchaser may assign this
Agreement to one or more Persons (as defined below); provided, that, such Person
shall be an Eligible  Assignee (as defined below) and such Person assumes all of
Purchaser's  obligations hereunder and agree to be bound by all of the terms and
conditions  hereof and pay any transfer  taxes payable in  connection  with such
assignment.

                       (c) Neither this Agreement nor any memorandum  hereof may
be recorded without first obtaining Owner's consent thereto.

                       (d) As used herein:

                            (i) the term "Persons" shall mean a corporation,  an
association,  a partnership  (general or limited), a joint venture, an estate, a
trust, a limited liability company, a limited liability  partnership,  any other
legal entity, or an individual;

                            (ii) the term  "Eligible  Assignee"  shall  mean (A)
with respect to Purchaser, any Persons Controlled by at least one or more of the
following individuals: Christoph A. Kahl and Stephen J. Zoukis and (B) any other
person or entity in tenancy in common with  Purchaser  or a Person  described in
clause  (A)  above;  provided,  however,  that  notwithstanding  any  assignment
pursuant to subclause (B),  Purchaser shall remain solely responsible for all of
its rights, obligations, agreements and covenants hereunder; and

                                       40
<PAGE>

                            (iii) the term "Control" and  "Controlled  by" shall
mean the  ability,  directly or  indirectly,  whether  through the  ownership of
voting  securities,  by contract,  or otherwise  (including by being the general
partner, managing member, officer or director of the Person in question), to (i)
direct or cause the direction of the  management  and policies of an entity,  or
(ii) conduct the day-to-day business operations of a Person. A Person or Persons
shall be deemed to direct or cause the direction of the  management and policies
of a Person  (and  accordingly  satisfy  clause  (i) of the  foregoing  test for
"Control") if the consent or approval of such  Person(s)  shall be required with
respect to major decisions concerning such entity.

                  27.  CONFIDENTIALITY AND PRESS RELEASES.

                       (a)  Until  the  Closing,  Purchaser  and  its  partners,
members, attorneys, agents, employees and consultants will treat the information
disclosed to it by Owner, or otherwise gained through  Purchaser's access to the
Property and Owner's books and records, as confidential, giving it the same care
as  Purchaser's  own  confidential  information,  and  make  no use of any  such
disclosed  information not independently known to Purchaser except in connection
with  the  transactions  contemplated  hereby  or  as  required  by  law.  Owner
acknowledges  that  Purchaser  will  incorporate  information  relating  to  the
Property in one or more  prospectuses  or other  offering  memoranda and related
supporting  materials to be  distributed  to potential  investors and filed with
various  governmental  agencies.  Purchaser  acknowledges  that any  information
contained in any such  prospectuses,  memoranda or other  materials shall not be
materially inconsistent with any of the information contained the SEC Disclosure
Documents.

                       (b) In the  event  of a  termination  of this  Agreement,
Purchaser shall promptly return copies of all such  confidential  information in
its possession to Owner and will use  commercially  reasonable  efforts to cause
other persons to whom it has delivered copies of such  confidential  information
to return the same to Owner. The parties agree that the  Confidentiality  Letter
Agreement,  dated  December 10, 2001,  between  Purchaser  and Owner,  is hereby
superceded by the terms and conditions of this Agreement.  Owner is entitled (i)
to  issue a press  release  related  to the  transactions  contemplated  by this
Agreement (a copy of which shall be delivered to Purchaser  for its review prior
to such issuance) and (ii) to disclose  information  related to the transactions
contemplated by this Agreement to the extent required (in the  determination  of
counsel to Owner) by the SEC or otherwise by applicable law.

                       (c) The parties  acknowledge  and agree that  irreparable
damage  would occur if any  provision  of this  Section 27 was not  performed in
accordance  with the terms hereof and that the parties  shall be entitled to the
remedy of specific  performance  of the terms  hereof,  in addition to any other
remedy at law or equity.

                  28.  FURTHER ASSURANCES.

                  Owner and Purchaser will do, execute,  acknowledge and deliver
all and every such further acts, conveyances,  assignments,  notices,  transfers
and assurances as may be reasonably  required by the other party, for the better
assuring, conveying,  assigning,  transferring and confirming unto Purchaser the
Property and for carrying out the intentions or facilitating the consummation of
this Agreement.

                                       41
<PAGE>

                  29.  THIRD PARTY BENEFICIARY.

                  This Agreement is an agreement solely for the benefit of Owner
and Purchaser (and their permitted successors and/or assigns).  No other person,
party or entity  shall have any  rights  hereunder  nor shall any other  person,
party or entity be entitled  to rely upon the terms,  covenants  and  provisions
contained herein.

                  30.  WAIVER OF TRIAL BY JURY.

                  Owner and Purchaser  hereby  irrevocably  and  unconditionally
waive any and all  right to trial by jury in any  action,  suit or  counterclaim
arising in connection with, out of or otherwise relating to this Agreement.

                  31.  MISCELLANEOUS.

                       (a)  This   Agreement   may  be   executed   in  multiple
counterparts,  each of which shall be deemed an original and together constitute
one and the same instrument.

                       (b)  Any  consent  or  approval  to  be  given  hereunder
(whether by Owner or Purchaser)  shall not be effective unless the same shall be
in  writing.  Except as  otherwise  expressly  provided  herein,  any consent or
approval  requested of Owner or Purchaser  may be withheld by Owner or Purchaser
in its sole and absolute discretion.

                  32.  ATTORNEYS' FEES.

                  In the event of any  litigation  between the parties hereto to
enforce any of the  provisions  of this  Agreement  or any right of either party
hereto,  the  unsuccessful  party  to  such  litigation  agrees  to  pay  to the
successful party all costs and expenses,  including  reasonable  attorneys' fees
and disbursements, incurred herein by the successful party in and as part of the
judgment rendered in such litigation.

                  33.  DISCLAIMERS.

                       (a)  Except  as  otherwise  expressly  provided  in  this
Agreement,  Purchaser  agrees to accept the Property on an "as-is,  where-is and
with all faults" basis.  Nothing contained in this Section 33(a) or in any other
provision of this Section 35 shall have the effect of  negating,  overriding  or
limiting any of the express representations and warranties of Owner contained in
this Agreement.

                       (b) This Agreement, as written, contains all the terms of
the  agreement  between  the  parties  as of  the  date  hereof,  and  Purchaser
acknowledges  that  neither  Owner,  nor  any  of  their  respective  affiliates
(including,   without   limitation,   their  respective   directors,   officers,
shareholders,  partners  or  members),  nor any of their  respective  employees,
agents  or  representatives,  has  made  any  representations  or  held  out any
inducements  to  Purchaser,   and  Owner  hereby   specifically   disclaims  any
representation,  oral or  written,  past,  present or  future,  other than those
expressly set forth in this  Agreement.  Without  limiting the generality of the
foregoing,   Purchaser  has  not  relied,  and  will  not  be  relying,  on  any
representations  or warranties  other than those  specifically set forth in this
Agreement,  and neither Owner nor any of Owner's affiliates (including,  without
limitation,  their respective  directors,  officers,  shareholders,  partners or
members), nor any of their respective employees, agents or representatives,  has
or is willing to make any  representations  or  warranties,  express or implied,
other than as may be expressly set forth herein.

                                       42
<PAGE>

                       (c)  Purchaser  acknowledges  and agrees that (i) some of
the  information  relating to the Property  (including  without  limitation  the
information listed in Section 3(b) hereof) that has been or will be delivered or
made available to Purchaser and  Purchaser's  Representatives  by Owner or Owner
affiliates (including, without limitation, their respective directors, officers,
shareholders,  partners  or  members),  and any of their  respective  employees,
agents or  representatives,  may have been prepared by third parties and may not
be the work product of Owner and/or any of Owner's  affiliates (such information
referred to as the "Third Party  Information");  (ii)  neither  Owner nor any of
Owner's affiliates (including,  without limitation,  their respective directors,
officers,  shareholders,  partners  or  members),  nor any of  their  respective
employees,  agents or representatives has made any independent  investigation or
verification  of, or has any knowledge of, the accuracy or completeness  of, the
Third Party  Information;  (iii) the Third Party  Information  delivered or made
available to Purchaser and Purchaser's  Representatives  is furnished to them at
the request,  and for the convenience of,  Purchaser;  (iv) Purchaser is relying
solely on its own  investigations,  examinations and inspections of the Property
and those of Purchaser's  Representatives  and on the  representations  of Owner
contained  herein and is not relying in any way on the Third  Party  Information
furnished by Owner or any of Owner's affiliates (including,  without limitation,
their respective directors, officers, shareholders, partners or members), or any
of their respective employees, agents or representatives;  and (v) except as set
forth in Section 10(a) above, Owner disclaims any  representations or warranties
with respect to the accuracy or completeness of the Third Party  Information and
Purchaser  hereby  releases  Owner and Owner's  affiliates  (including,  without
limitation,  their respective  directors,  officers,  shareholders,  partners or
members), and any of their respective employees, agents or representatives, from
any and all liability with respect thereto.

                       (d)  Purchaser and anyone  claiming by,  through or under
Purchaser,  hereby fully and irrevocably  releases Owner and Owner's  affiliates
(including,   without   limitation,   their  respective   directors,   officers,
shareholders,  partners  or  members),  and any of their  respective  employees,
agents  or  representatives,  from  any and all  claims  that it may now have or
hereafter  acquire  against  Owner or  Owner's  affiliates,  or their  officers,
directors, employees, agents or representatives,  for any cost, loss, liability,
damage,  expense,  action or cause of action,  whether  foreseen or  unforeseen,
arising from or related to any construction  defects,  errors or omissions on or
in the Property, the presence of environmentally  hazardous,  toxic or dangerous
substances,  or any other  conditions  (whether  patent,  latent  or  otherwise)
affecting  the  Property,  except  for  claims  against  Owner  based  upon  any
representations, obligations and liabilities of Owner expressly provided in this
Agreement.

                                       43
<PAGE>

                  IN WITNESS  WHEREOF,  this  instrument has been executed under
seal by the parties hereto as of the day and year first above written.

                                         OWNER:

                                         METROPOLIS REALTY TRUST, INC.

                                         By: /s/ John R.S. Jacobsson
                                            ---------------------------
                                            Name: John R.S. Jacobsson
                                            Title: Vice President

                                         PURCHASER:

                                         JAMESTOWN 1290, L.P.

                                         By:  JT 1290 Corp., its General Partner

                                         By: /s/ Stephen J. Zoukis
                                            ---------------------------
                                            Name: Stephen J. Zoukis
                                            Title: President

                                         1290 PARTNERS:

                                         The undersigned  agrees to transfer its
                                         interest  in the  Property  at  Closing
                                         subject to and in  accordance  with the
                                         terms hereof.

                                         1290 PARTNERS, L.P.

                                         By:  1290 GP Corp., its General Partner

                                         By: /s/ John R.S. Jacobsson
                                            ---------------------------
                                            Name: John R.S. Jacobsson
                                            Title: Vice President

                                       44
<PAGE>

                                         ESCROW AGENT:

                                         The  undersigned  acknowledges  that it
                                         has  reviewed and agrees to be bound by
                                         the provisions of Article 4 hereof.

                                         FIDELITY   NATIONAL   TITLE   INSURANCE
                                         COMPANY

                                         By: /s/ Karen Kirspel
                                            ---------------------------
                                            Name: Karen Kirspel
                                            Title: Senior Coordinator

                                       45
<PAGE>

                                   Schedule D

                              List of Major Tenants
                              ---------------------

Equitable Life

Warner Music

Robinson Silverman

The Bank of New York/GMAC

Morrison Foerster

Deutsche Bank

                                       46

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