Document:

EX-10.1

AGREEMENT FOR PURCHASE AND SALE

OF REAL PROPERTY AND ESCROW INSTRUCTIONS 

THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS (this
“Agreement”) is made and entered into as of February 22, 2008 (the “Effective
Date”), by and between NHP Cypress Station Partnership, LP, a Texas limited partnership
(“Seller”) and GRUBB & ELLIS REALTY INVESTORS, LLC, a Virginia limited liability company
(“Buyer”), with reference to the following facts:

	 	A.	 	Seller owns that certain real property commonly known as Cypress Station
Medical Office Building, located at 1140 Cypress Station Drive, City of Houston, Harris
County, State of Texas, as more particularly described on Exhibit A attached
hereto (the “Land”), and such other assets, as more particularly described in
this Agreement.

	 	B.	 	Seller desires to sell to Buyer and Buyer desires to purchase from Seller the
Land and the associated assets.

NOW, THEREFORE, in consideration of the mutual covenants, premises and agreements herein
contained, the parties hereto do hereby agree as follows:

1. Purchase and Sale.

	 	1.1.	 	At the “Close of Escrow” (as defined below) Seller hereby agrees to
sell and convey to Buyer and Buyer hereby agrees to purchase from Seller, subject to
the terms and conditions of this Agreement, all of Seller’s right, title, estate and
interest in and to all of the following (collectively, the “Property”):

	 	1.1.1.	 	The Land;

	 	1.1.2.	 	All rights, privileges and easements appurtenant to the Land, including,
without limitation, all of Seller’s right, title and interest, if any, in
minerals, oil, gas and other hydrocarbon substances on the Land, as well as all
development rights, air rights, water rights and water stock owned by Seller
relating to the Land, and any easements, rights of way or other appurtenances
of Seller used in connection with the beneficial use and enjoyment of the Land
(collectively, the “Appurtenances”);

	 	1.1.3.	 	All of Seller’s right, title and interest in all improvements and fixtures
located on the Land, including, without limitation, all buildings and
structures owned by Seller presently located on the Land, all apparatus,
equipment and appliances used in connection with the operation or occupancy of
the Land, such as heating, air conditioning, and lighting systems and other
facilities used to provide any utility services, refrigeration, ventilation,
garbage disposal, or other services on the Land (all of which are collectively
referred to as the “Improvements,” and together with the Land, the
Appurtenances and the Improvements are collectively referred to herein as the
“Real Property”);

	 	1.1.4.	 	All tangible personal property now or hereafter owned by Seller and located
on or in, or used in connection with, the Real Property (the “Personal
Property”);

	 	1.1.5.	 	All leases, licenses and other occupancy agreements together with all
associated amendments, modifications, extensions or supplements thereto set
forth on Exhibit B attached hereto and any other lease, license or
occupancy agreement entered into in accordance with the terms of this Agreement
prior to the Close of Escrow (collectively, the “Leases”) with all
persons or entities occupying the Real Property or any part thereof pursuant to
the Leases (“Tenants”), together with all deposits held in connection
with the Leases, including, without limitation, all security deposits, prepaid
rent, guaranties, letters of credit and other similar charges and credit
enhancements providing additional security for the Leases, as set forth on
Exhibit C attached hereto;

	 	1.1.6.	 	To the extent assignable, all intangible personal property now or hereafter
owned by Seller and used in the ownership, use, operation, occupancy,
maintenance or development of the Real Property and Personal Property,
including, without limitation (i) all licenses, permits, certificates,
approvals, authorizations and other entitlements issued (the
“Permits”); (ii) all reports, test results, environmental assessments,
surveys, plans, specifications (the “Plans”); (iii) all warranties and
guaranties from manufacturers, contractors, subcontractors, suppliers and
installers (“Warranties”); (iv) all trade names, trademarks, service
marks, building and property names and building signs used in connection with
the Real Property, including the name “Cypress Station” and all variations
thereof (the “Tradenames”); (v) all telephone numbers, domain names,
e-mail addresses and other means of contact utilized in connection with the
Real Property; and (vi) all other intangible property related to the Real
Property (collectively the “Intangible Property”);

	 	1.1.7.	 	All assignable equipment leases, service, utility, supply, maintenance, and
concession contracts, agreements and other continuing contractual obligations
affecting the use, operation, maintenance, development and repair of the Real
Property or the Personal Property which shall extend beyond the date of Closing
and which the Buyer elects to assume (the “Contracts”).

2. Purchase Price. The total Purchase Price of the Property shall be Eleven Million Two
Hundred Thousand and No/100 Dollars ($11,200,000.00) (“Purchase Price”), and payable as
follows:

	 	2.1.	 	Deposit/Further Payments.

	 	2.1.1.	 	Within three (3) business days following the date a fully executed original
of this Agreement is received by the Escrow Holder, as defined below (the date
the fully executed original of this Agreement is received by the Escrow Holder
shall hereinafter be referred to as the “Effective Date”), Buyer shall
deposit into Escrow (hereinafter defined) the amount of Three Hundred Thousand
and No/100 Dollars ($300,000.00) (the “Deposit”), in the form of a wire
transfer payable to Land America Title Company, 915 Wilshire Blvd., Suite 2100,
Los Angeles, California 90017, Attn: Lois McCauley (“Escrow Holder”).
Escrow Holder shall place the Deposit into an interest bearing money market
account at a bank or other financial institution reasonably satisfactory to
Buyer, and interest thereon shall be credited to Buyer’s account and shall be
deemed to be part of the Deposit.

	 	2.1.2.	 	On or before Close of Escrow, Buyer shall deposit with the Escrow Holder to
be held in Escrow the balance of the Purchase Price, in immediately available
funds by wire transfer made payable to Escrow Holder.

	 	2.1.3.	 	Escrow Holder shall deposit the Deposit in a non-commingled trust account and
shall invest the Deposit in an insured, interest bearing money market accounts,
certificates of deposit, United States Treasury Bills or such other instruments
as directed by Buyer and reasonably acceptable to Seller and interest thereon
shall be credited to Buyer’s account and deemed to be part of the Deposit. In
the event of the consummation of the purchase and sale of the Property as
contemplated hereunder, the Deposit shall be paid to Seller and credited
against the Purchase Price at the “Close of Escrow” (as defined below).
In the event the sale of the Property is not consummated because of the
termination of this Agreement by Buyer in accordance with any right to so
terminate provided herein, or the failure of any Buyer’s Conditions (as defined
below), or for any other reason, except for a default by Buyer under
Section 13.2, then the Deposit shall be immediately and automatically
paid over to Buyer without the need for any further action by either party
hereto. In the event the sale of the Property is not consummated because of a
default by Buyer under Section 13.2, the Deposit shall be promptly paid
to and retained by Seller in accordance with Section 13.2.

3. Title to Property.

	 	3.1.	 	Title Insurance.

Seller will, at Seller’s sole expense, cause Land America Title Company (the
“Title Company”) to issue a basic Owner’s Policy of Title Insurance (the
“Title Policy”) for and on behalf of Buyer in the total amount of the
Purchase Price and obtainable at standard rates insuring good, indefeasible and
insurable title in and to the Real Property, subject to the Permitted exceptions
(defined below). The Title Policy shall contain such endorsements as Buyer may
reasonably require (the “Endorsements”). The Title Policy shall not contain
any of the following exceptions to title (the “Pre-Disapproved Exceptions”):
all labor, materialmens and mechanics liens, mortgages, deeds of trust, and other
monetary encumbrances, assessments and/or indebtedness, except for the current
installment of non-delinquent real property taxes and assessments payable as part of
the real property tax bill.

	 	3.2.	 	Procedure for Approval of Title.

Buyer acknowledges that it has already received a preliminary title report for the
Real Property (the “Commitment”) together with legible copies of all items
identified as exceptions therein (the “Title Documents”). Buyer shall have
thirty (30) days following the later of (a) the Effective Date; and (b) the receipt
of the later of the Title Documents and the “Survey” (as defined in
Section 4.1.1) to review and approve, in writing, the condition of the title
to the Real Property (“Title Review Period”). If the Title Documents or the
Survey reflect or disclose any defect, exception or other matter affecting the Real
Property (“Title Defects”) that is unacceptable to Buyer, then Buyer shall
provide Seller with written notice of Buyer’s objections no later than the
conclusion of the Title Review Period; provided, however, if Buyer shall fail to
notify Seller in writing within the Title Review Period either that the condition of
title is acceptable or of any specific objections to the state of title to the Real
Property, then Buyer shall be deemed to have waived objection to all exceptions to
title or other conditions or matters which are shown on the Survey or described in
the Title Documents. Seller may, at its sole option, elect, by written notice given
to Buyer within seven (7) days following the conclusion of the Title Review Period
(“Seller’s Notice Period”), to cure or remove the objections made by Buyer;
provided, however, Seller shall in no event have the obligation to cure any
objections. The failure of Seller to deliver written notice electing to cure any or
all such objected to exceptions during the Seller’s Notice Period shall be deemed an
election by Seller not to cure such exceptions. Should Seller elect to attempt to
cure or remove any objection, Seller shall have fifteen (15) days from the
conclusion of the Title Review Period (“Cure Period”) in which to accomplish
the cure. In the event Seller elects (or is deemed to have elected) not to cure or
remove any objection, or in any event Seller fails to cure or remove any objection
which Seller agrees to cure within the Cure Period, then Buyer shall be entitled, as
Buyer’s sole and exclusive remedies, either to (i) terminate this Agreement and
obtain a refund of the Deposit or (ii) waive any objections that Seller has not
elected to cure and close this transaction as otherwise contemplated herein. The
failure of Buyer to provide written notice to Seller within ten (10) days following
the expiration of the Seller’s Notice Period waiving any objections Seller has not
elected to cure shall be deemed an election by Buyer to terminate this Agreement.
Any exceptions to title accepted or deemed accepted by Buyer pursuant to the terms
of this Section shall be deemed “Permitted Exceptions.” If at anytime prior
to the Close of Escrow, Buyer receives an update or supplement to the Commitment or
Survey and such update or supplement discloses one or more Title Defects that are
not Permitted Exceptions (in each case, a “New Title Defect”) and any New
Title Defect is unacceptable to Buyer, Buyer may, within three (3) business days
after receiving such update or supplement to the Commitment or Survey, as the case
may be, deliver to the Seller another written notice of Buyer’s objections with
respect to any New Title Defect only and the process described in this Section shall
apply thereto.

4. Due Diligence Items.

	 	4.1.	 	Seller shall, within three (3) days after the Effective Date (the “Delivery
Date”), deliver to Buyer each of the following to the extent the same exists and is
in Seller’s possession (collectively, the “Due Diligence Items”):

	 	4.1.1.	 	Seller’s existing survey of the Property (the “Survey”);

	 	4.1.2.	 	Copies of all Leases presently in effect with respect to the Real Property,
together with any amendments or modifications thereof;

	 	4.1.3.	 	A “Rent Roll” with respect to the Real Property for the calendar
month immediately preceding the Effective Date, showing with respect to each
Tenant of the Real Property: (1) the name of the Tenant, (2) the number of
rentable square feet in Tenant’s premises as set forth in Tenant’s Lease, (3)
the current monthly base rental payable by such Tenant, (4) the term of the
Lease, (5) any available options for the Tenant under the Lease; and (6) the
amount of any security deposit;

	 	4.1.4.	 	A Rent Roll current as of December, 2006, 2007 and 2008 year to date;

	 	4.1.5.	 	An aging report showing, with respect to each Tenant of the Real Property,
the date through which such Tenant has paid rent and a Tenant by Tenant monthly
aging report for the period of Seller’s ownership of the Property;

	 	4.1.6.	 	Copies of all contracts, including, without limitation, service contracts,
warranties, management, maintenance, leasing commission or other agreements
affecting the Property;

	 	4.1.7.	 	All site plans, leasing plans, as-built plans, drawings, environmental,
mechanical, electrical, structural, soils and similar reports and/or audits and
plans and specifications relative to the Real Property in the possession of
Seller, if any;

	 	4.1.8.	 	True and correct copies of the real estate and personal property tax
statements covering the Property or any part thereof for each of the two (2)
years prior to the current year and, if available, for the current year;

	 	4.1.9.	 	A schedule of all current or pending litigation with respect to the Real
Property or any part thereof, if any, or otherwise with respect to Seller that
might have a material adverse effect on Seller’s ability to perform hereunder,
together with a brief description of each such proceeding;

	 	4.1.10.	 	Operating statements for the Real Property for the two prior calendar years
and the current year to date, or if shorter, for any periods during which
Seller was owner of the Real Property;

	 	4.1.11.	 	Copies of Tenant files and records relating to the ownership and operation
of the Real Property;

	 	4.1.12.	 	An inventory of all personal property located on the Real Property which is
used in the maintenance of the Real Property or stored for future use with the
Real Property;

	 	4.1.13.	 	Intentionally Deleted;

	 	4.1.14.	 	Copies of utility bills for the Real Property for the two prior calendar
years and the current year to date or if shorter, for any periods during which
the Seller was the owner of the Property;

	 	4.1.15.	 	A report from a licensed pest control contractor regarding the presence on
the Real Property of dry rot or termite infestation;

	 	4.1.16.	 	A report from a licensed HVAC contractor concerning the condition of HVAC
equipment and its capacity to service the Real Property;

	 	4.1.17.	 	An Environmental Impact Report for the Real Property; and

	 	4.1.18.	 	A report from a licensed roofer concerning the water-proofness and condition
of the roof for the Real Property.

5. Inspections.

	 	5.1.	 	Procedure; Indemnity.

Buyer, at its sole expense, shall have the right to conduct feasibility,
environmental, engineering and physical studies of the Real Property at any time
from and after Effective Date and for a period of twenty-one (21) days thereafter
(the “Due Diligence Period”); provided, however, if the Due Diligence Items
are not delivered on the Delivery Date, Buyer may, by written notice delivered prior
to the conclusion of the original Due Diligence Period, extend the Due Diligence
Period for a period equal to the associated delay in delivery of such materials
beyond the Delivery Date. Buyer and its duly authorized agents or representatives
shall be permitted to enter upon the Real Property at all reasonable times during
the Due Diligence Period in order to conduct tenant interviews, engineering studies,
soil tests and any other inspections and/or tests that Buyer may deem necessary or
advisable (collectively, the “Inspections”). Notwithstanding the above,
Buyer shall not conduct any invasive testing (such as a Phase II environmental
inspection) without the prior written approval of Seller, which approval shall not
be unreasonably withheld. Buyer shall also give Seller at least twenty-four (24)
hours prior notice via electronic mail before accessing the Property and shall use
its reasonable efforts to minimize disturbance to the tenants at the Property during
any Inspections. Buyer shall promptly return the Property to the same condition
following any Inspections. Buyer agrees to promptly discharge any liens that may be
imposed against the Real Property as a result of Buyer’s Inspections and to defend,
indemnify and hold Seller harmless from all claims, suits, losses, costs, expenses
(including without limitation court costs and attorneys’ fees), liabilities,
judgments and damages (collectively, “Claims”) incurred by Seller as a
result of any Inspections performed by Buyer. The obligations in this Section shall
survive Closing or the termination of this Agreement.

	 	5.2.	 	Approval.

	 	5.2.1.	 	Buyer shall have until the conclusion of the Due Diligence Period (as the
same may be extended in accordance with the terms of Section 5.1 above)
to approve or disapprove of the Inspections and the Due Diligence Items
enumerated in Section 4. If Buyer shall fail to deliver a written
notice to Seller and Escrow Holder within the Due Diligence Period approving
the condition of the Real Property this Agreement shall thereupon be
automatically terminated, Buyer shall not be entitled to purchase the Real
Property, Seller shall not be obligated to sell the Real Property to Buyer and
the parties shall be relieved of any further obligation to each other with
respect to the Real Property. Upon termination, Escrow Holder shall, without
any further action required from any party, return all documents and funds,
including the Deposit, to the parties who deposited same and no further duties
shall be required of Escrow Holder.

	 	5.2.2.	 	Notwithstanding anything to the contrary contained herein, Buyer hereby
agrees that in the event this Agreement is terminated for any reason, then
Buyer shall promptly and at its sole expense return to Seller all Due Diligence
Items which have been delivered by Seller to Buyer in connection with Buyer’s
inspection of the Real Property within one (1) business day following the
termination of this Agreement

	 	5.2.3.	 	On or before the expiration of the Due Diligence Period, the Buyer may
deliver written notice to the Seller (the “Contracts Notice”)
specifying any Contracts with respect to which Buyer requires Seller deliver
notices of termination at the Closing (the “Terminated Contracts”)
whereupon the Terminated Contracts shall not be assigned to, or assumed by, the
Buyer. To the extent that any such Terminated Contract requires payment of a
penalty or premium for cancellation, the Seller shall be solely responsible for
the payment of any such cancellation fees or penalties. If the Buyer fails to
deliver the Contracts Notice on or before the expiration of the Due Diligence
Period, there shall be no Terminated Contracts and the Buyer shall assume all
Contracts set forth on Exhibit D at the Closing. Notwithstanding
anything to the contrary set forth in this section, prior to the Closing Date
the Seller shall terminate any and all management contracts pertaining to the
Property.

	 	5.3.	 	As-Is, Where-Is.

THIS AGREEMENT IS AN ARMS-LENGTH AGREEMENT BETWEEN THE PARTIES. BUYER ACKNOWLEDGES
AND AGREES THAT, EXCEPT AS SPECIFICALLY PROVIDED HEREIN, SELLER HAS NOT MADE, DOES
NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES,
COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER
EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING
OR WITH RESPECT TO: (A) THE NATURE, QUALITY OR CONDITION OF THE PROPERTY INCLUDING,
WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY; (B) THE INCOME TO BE DERIVED FROM
THE PROPERTY; (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND
USES WHICH BUYER MAY CONDUCT THEREON; (D) THE COMPLIANCE OF OR BY THE PROPERTY OR
ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES, OR REGULATIONS OF ANY APPLICABLE
GOVERNMENTAL AUTHORITY OR BODY; (E) THE HABITABILITY, MERCHANTABILITY, OR FITNESS
FOR A PARTICULAR PURPOSE OF THE PROPERTY; OR (F) ANY OTHER MATTER WITH RESPECT TO
THE PROPERTY. WITHOUT LIMITING THE FOREGOING, AND EXCEPT AS PROVIDED HEREIN, SELLER
DOES NOT AND HAS NOT MADE ANY REPRESENTATION OR WARRANTY REGARDING THE PRESENCE OR
ABSENCE OF ANY HAZARDOUS MATERIALS ON, UNDER OR ABOUT THE PROPERTY OR THE COMPLIANCE
OR NONCOMPLIANCE OF THE PROPERTY WITH THE COMPREHENSIVE ENVIRONMENTAL RESPONSE,
COMPENSATION AND LIABILITY ACT, THE SUPERFUND AMENDMENT AND REAUTHORIZATION ACT, THE
RESOURCE CONSERVATION RECOVERY ACT, THE FEDERAL WATER POLLUTION CONTROL ACT, THE
FEDERAL INSECTICIDE, FUNGICIDE AND RODENTICIDE ACT, THE CLEAN WATER ACT, THE CLEAN
AIR ACT, THE TEXAS NATURAL RESOURCES AND ADMINISTRATIVE CODES, THE TEXAS WATER CODE,
THE TEXAS SOLID WASTE DISPOSAL ACT, THE TEXAS HAZARDOUS SUBSTANCES SPILL PREVENTION
AND CONTROL ACT, ANY SO CALLED FEDERAL, STATE OR LOCAL “SUPERFUND” OR “SUPERLIEN”
STATUTE, OR ANY OTHER STATUTE, LAW, ORDINANCE, CODE, RULE, REGULATION, ORDER OR
DECREE REGULATING, RELATING TO OR IMPOSING LIABILITY (INCLUDING STRICT LIABILITY) OR
STANDARDS OF CONDUCT CONCERNING ANY HAZARDOUS MATERIALS. BUYER FURTHER ACKNOWLEDGES
AND AGREES THAT, BEING GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, BUYER WILL BE
PURCHASING THE PROPERTY PURSUANT TO ITS INDEPENDENT EXAMINATION, STUDY, INSPECTION
AND KNOWLEDGE OF THE PROPERTY, AND BUYER IS RELYING UPON ITS OWN DETERMINATION OF
THE VALUE OF THE PROPERTY AND USES TO WHICH THE PROPERTY MAY BE PUT. BUYER FURTHER
ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT
TO THE PROPERTY WAS OR WILL BE OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER
HAS NOT MADE AND WILL NOT BE OBLIGATED TO MAKE ANY INDEPENDENT INVESTIGATION OR
VERIFICATION OF SUCH INFORMATION AND, EXCEPT AS PROVIDED HEREIN, SELLER MAKES NO
REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. THE PARTIES
AGREE THAT THIS PROVISION WAS A SUBSTANTIAL FACTOR IN DETERMINING THE PURCHASE PRICE
OF THE PROPERTY, AND THAT THE ACKNOWLEDGMENTS AND AGREEMENTS OF BUYER SET FORTH IN
THIS PARAGRAPH SHALL SURVIVE THE CLOSING AND SHALL NOT BE MERGED THEREIN.

6. Escrow.

	 	6.1.	 	Opening.

Purchase and sale of the Property shall be consummated through an escrow
(“Escrow”) to be opened with Escrow Holder within two (2) business days
after the execution of this Agreement by Seller and Buyer. This Agreement shall be
considered as the Escrow instructions between the parties, with such further
consistent instructions as Escrow Holder shall require in order to clarify its
duties and responsibilities. If Escrow Holder shall require further Escrow
instructions, Escrow Holder may prepare such instructions on its usual form. Such
further instructions shall, so long as not inconsistent with the terms of this
Agreement, be promptly signed by Buyer and Seller and returned to Escrow Holder
within three (3) business days of receipt thereof. In the event of any conflict
between the terms and conditions of this Agreement and any further Escrow
instructions, the terms and conditions of this Agreement shall control.

	 	6.2.	 	Close of Escrow.

For purposes of this Agreement, the “Close of Escrow” shall be defined as
the date the Deed is delivered to Buyer and the Purchase Price is paid and released
to Seller. The Close of Escrow shall occur on the date that is thirty (30) days
after the expiration of the Due Diligence Period (as such period may be extended
pursuant to Section 5.1 hereof); or on such other date mutually approved in
writing by Seller and Buyer (the “Closing Date”); provided, however, that
Buyer shall have the right to set the Closing Date at any date prior to the thirty
(30) days after the expiration of the Due Diligence Period without Seller’s consent
within ten (10) days’ notice to Seller. In no event shall the Closing Date occur
after March 31, 2008. The foregoing notwithstanding, Buyer may, at Buyer’s
election, and upon payment of Fifty Thousand and No/100 Dollars ($50,000.00) (the
“Extension Deposit”) to Escrow Holder, extend the Close of Escrow for thirty
(30) days. In the event an Extension Deposit is paid to Escrow Holder, all
references to the Deposit in this Agreement shall include the Extension Deposit.

	 	6.3.	 	Buyer Required to Deliver. On or before the Close of Escrow, Buyer
shall deliver to Escrow the following:

	 	6.3.1.	 	In accordance with Section 2, the Deposit;

	 	6.3.2.	 	On or before Close of Escrow, by 5:00 p.m. (Eastern Time) of the Closing
Date, the balance of the Purchase Price; provided, however that Buyer shall not
be required to deposit the balance of the Purchase Price into Escrow until
Buyer has been notified by Escrow Holder that (i) Seller has delivered to
Escrow each of the documents and instruments to be delivered by Seller in
connection with Buyer’s purchase of the Property, (ii) Title Company has
committed to issue and deliver the Title Policy to Buyer, and (iii) the only
impediment to Close of Escrow is delivery of such amount by or on behalf of
Buyer;

	 	6.3.3.	 	On or before Close of Escrow, such other documents as the Title Company may
require from Buyer in order to issue the Title Policy;

	 	6.3.4.	 	Two (2) originals of an Assignment and Assumption Agreement in the form
attached hereto as Exhibit E (the “Assignment Agreement”), duly
executed by Buyer assigning all of Seller’s right, title and interest in and to
the Leases, Personal Property, Contracts, which Buyer elects to assume, and
Permits from and after the Close of Escrow to Buyer; and

	 	6.3.5.	 	Such other documents as may be required by this Agreement or as may
reasonably be required to carry out the terms and intent of this Agreement,
provided that such documents shall not increase Buyer’s liability or result in
a material expense to Buyer.

	 	6.4.	 	Seller Required to Deliver.

	 	6.4.1.	 	No later than one (1) business day prior to the Close of Escrow (unless an
earlier date is specified), Seller shall deliver to Escrow Holder the
following:

	 	(a)	 	One (1) original Warranty Deed in the form
attached hereto as Exhibit F (the “Deed”), duly
executed and acknowledged by Seller and in proper form for recording,
conveying fee title to the Real Property to Buyer;

	 	(b)	 	Two (2) original Assignment Agreements, duly
executed by Seller, assigning all of Seller’s right, title and interest
in and to the Leases, Personal Property, Contracts, which Buyer elects
to assume, and Permits to Buyer from and after the Close of Escrow;

	 	(c)	 	One (1) original certification as to Seller’s
non-foreign status which complies with the provisions of Section
1445(b)(2) of the Internal Revenue Code of 1986, as amended, any
regulations promulgated thereunder, and any revenue procedures or other
officially published announcements of the Internal Revenue Service or
the U.S. Department of the Treasury in connection therewith (the
“FIRPTA”);

	 	(d)	 	A certificate, in the form required by the
State of Texas, duly executed by Seller under penalty of perjury,
certifying that the Seller is exempt from the requirement to withhold
taxes in connection with the sale of the Property, or alternatively,
such taxes will be withheld and paid to the Title Company for
disbursement to the State of Texas, in accordance with Texas law.

	 	(e)	 	One (1) original letter, in a form acceptable
to Buyer and in compliance with Section 93.007 of the Texas Property
Code, duly executed by Seller, advising the tenants under the Leases of
the change in ownership of the Real Property;

	 	(f)	 	No later than ten (10) days prior to Close of
Escrow, Tenant’s estoppel certificates as required by and provided for
in Section 9.1.6 and “SNDA,” as defined in, required by and
provided for in Section 9.1.6;

	 	(g)	 	Such other documents and instruments, executed
and properly acknowledged by Seller, if applicable, as Title Company
may require from Seller in order to issue the Title Policy;

	 	(h)	 	Such other documents as may be required by this
Agreement or as may reasonably be required to carry out the terms and
intent of this Agreement, provided that such documents shall not
increase Seller’s liability or result in a material expense to Seller;

	 	(i)	 	A current Rent Roll certified by the Seller to
its knowledge as being true and accurate as of the Closing Date; and

	 	(j)	 	Intentionally Deleted.

	 	6.4.2.	 	Within one (1) business day of the Close of Escrow, Seller shall deliver to
Buyer the following:

	 	(a)	 	All keys to all buildings and other
improvements located on the Real Property, combinations to any safes
thereon, and security devices therein in Seller’s possession;

	 	(b)	 	A letter from Seller addressed to each Tenant
informing such Tenant of the change in ownership in compliance with
Section 93.007 of the Texas Property Code;

	 	(c)	 	The original Leases, Contracts and Permits; and

	 	(d)	 	All records and files relating to the
management or operation of the Real Property, including, without
limitation, all insurance policies, all service contracts, all tenant
files (including correspondence), property tax bills, and all
calculations used to prepare statements of rental increases under the
Leases and statements of common area charges, insurance, property taxes
and other charges which are paid by Tenants of the Real Property.

	 	 	 	 	 	 	 
	6.5.

	 	Buyer’s Costs.
	 	

	 	 	 
	 	 	Buyer shall pay the following:
	
 
	 	 	6.5.1.	 	 	One-half (1/2) of Escrow Holder’s fee, costs and expenses;

	 	6.5.2.	 	The cost of any Survey updates and any endorsements, deletions to the Title
Policy

	 	6.5.3.	 	Buyer’s attorneys’ fees; and

	 	6.5.4.	 	All other costs customarily borne by buyers of real property in Harris
County, Texas.

	 	 	 	 	 
	6.6.

	 	Seller’s Costs.
	 	

	 	 	 
	 	 	Seller shall pay the following:
	
 
	 	6.6.1.

6.6.2.

6.6.3.
	 	One-half (1/2) of Escrow Holder’s fees, costs and expenses;

The cost of recording the Deed;

Seller’s attorney fees;

	 	6.6.4.	 	Recording fees for the conveyance deed, or any other document(s) required by
the Title Company in order to release Title Defects or New Title Defects;

	 	 	 
	6.6.5.

6.6.6.

6.6.7.

	 	Escrow Holder basic premium for the Title Policy

Intentionally Deleted;

Intentionally Deleted;

	 	6.6.8.	 	All costs associated with removing any debt encumbering the Real Property;
and

	 	6.6.9.	 	All other costs customarily borne by sellers of real property in Harris
County, Texas.

	 	6.7.	 	Prorations.

	 	6.7.1.	 	Items to be Prorated. The following shall be prorated between Seller
and Buyer as of the Close of Escrow with the Buyer being deemed the owner of
the Property as of the Close of Escrow:

(a) Taxes and Assessments. All non-delinquent real property
taxes, assessments and other governmental impositions of any kind or nature,
including, without limitation, any special assessments or similar charges
(collectively, “Taxes”), which relate to the tax year within which
the Closing occurs based upon the actual number of days in the tax year.
With respect to any portion of the Taxes which are payable by any Tenant
directly to the authorities, no proration or adjustment shall be made. The
proration for Taxes shall be based upon the most recently issued tax bill
for the Property. If the most recent tax bill is not for the current tax
year, then the parties shall reprorate within thirty (30) days of the
receipt of the tax bill for the current tax year. Upon the Close of Escrow
and subject to the adjustment provided above, Buyer shall be responsible for
real estate taxes and assessments on the Property payable from and after the
Close of Escrow. In no event shall Seller be charged with or be responsible
for any increase in the taxes or assessments on the Property resulting from
the sale of the Property or from any improvements made or leases entered
into after the Close of Escrow. With respect to all periods for which
Seller has paid Taxes, Seller hereby reserves the right to institute or
continue any proceeding or proceedings for the reduction of the assessed
valuation of the Property, and, in its sole discretion, to settle the same.
Seller shall have sole authority to control the progress of, and to make all
decisions with respect to, such proceedings but shall provide Buyer with
copies of all communications with the taxing authorities. All net tax
refunds and credits attributable to any period prior to the Close of Escrow
which Seller has paid or for which Seller has given a credit to Buyer shall
belong to and be the property of Seller, provided, however, that any such
refunds and credits that are the property of Tenants under Leases shall be
promptly remitted by Seller directly to such Tenants or to Buyer for the
credit of such Tenants. All net tax refunds and credits attributable to any
period subsequent to the Close of Escrow shall belong to and be the property
of Buyer. Buyer agrees to cooperate with Seller in connection with the
prosecution of any such proceedings and to take all steps, whether before or
after the Close of Escrow, as may be necessary to carry out the intention of
this subsection, including the delivery to Seller, 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 consent
or other documents, and the undertaking of any acts necessary for the
collection of such refund by Seller. Buyer agrees that, as a condition to
the transfer of the Property by Buyer, Buyer will cause any transferee to
assume the obligations set forth herein.

(b) Rents. Buyer will receive a credit at closing for all rents
collected by Seller prior to the Closing and allocable to the period from
and after the Close of Escrow based upon the actual number of days in the
month. No credit shall be given the Seller for accrued and unpaid rent or
any other non-current sums due from Tenants until these sums are paid, and
Seller shall retain the right to collect any such rent provided Seller does
not sue to evict any tenants or terminate any Leases. Buyer shall cooperate
with Seller after Closing to collect any rent under the Leases which has
accrued as of the Closing; provided, however, Buyer shall not be obligated
to sue any Tenants or exercise any legal remedies under the Leases or to
incur any expense over and above its own regular collection expenses. All
payments collected from Tenants after Closing shall first be applied to the
month in which the Closing occurs, then to any rent due to Buyer for the
period after Closing and finally to any rent due to Seller for the period
prior to Closing; provided, however, notwithstanding the foregoing, if
Seller collects any payments from Tenants after Closing through its own
collection efforts, Seller may first apply such payments to rent due the
Seller for the period prior to Closing.

(c) CAM Expenses. To the extent that Tenants are reimbursing
the landlord for common area maintenance and other operating expenses
(collectively, “CAM Charges”), CAM Charges shall be prorated at
Closing and again subsequent to Closing, as of the date of Closing on a
lease-by-lease basis with each party being entitled to receive a portion of
the CAM Charges payable under each Lease for the CAM Lease Year in which
Closing occurs, which portion shall be equal to the actual CAM Charges
incurred during the party’s respective periods of ownership of the Property
during the CAM Lease Year. As used herein, the term “CAM Lease
Year” means the twelve (12) month period as to which annual CAM Charges
are owed under each Lease. Five (5) days prior to Closing the Seller shall
submit to Buyer an itemization of its actual CAM Charges operating expenses
through such date and the amount of CAM Charges received by the Seller as of
such date, together with an estimate of CAM Charges to be incurred to, but
not including, the Close of Escrow. In the event that the Seller has
received CAM Charges payments in excess of its actual CAM Charges operating
expenses, the Buyer shall be entitled to receive a credit against the
Purchase Price for the excess. In the event that the Seller has received
CAM Charges payments less than its actual CAM Charges operating expenses, to
the extent that the Leases provide for a “true up” at the end of the CAM
Lease Year, the Seller shall be entitled to receive any deficit but only
after the Buyer has received any true up payment from the Tenant. Upon
receipt by either party of any CAM Charge true up payment from a Tenant, the
party receiving the same shall provide to the other party its allocable
share of the “true up” payment within five (5) days of the receipt thereof.

To assist the Buyer in preparing “true up” reconciliation at the end of the
CAM Lease Year, the Seller shall deliver to the Buyer at Closing records of
all of the Seller’s CAM Charge expenditures.

(d) Operating Expenses. All operating expenses (including all
charges under the service contracts and agreements assumed by Buyer) shall
be prorated, and as to each service provider, operating expenses payable or
paid to such service provider in respect to the billing period of such
service provider in which the Close of Escrow occurs (the “Current
Billing Period”), shall be prorated on a per diem basis based upon the
number of days in the Current Billing Period prior to the Close of Escrow
and the number of days in the Current Billing Period from and after the
Close of Escrow, and assuming that all charges are incurred uniformly during
the Current Billing Period. If actual bills for the Current Billing Period
are unavailable as of the Close of Escrow, then such proration shall be made
on an estimated basis based upon the most recently issued bills, subject to
readjustment upon receipt of actual bills.

(e) Security Deposits; Prepaid Rents. All deposits, including,
without limitation, all prepaid rentals, damage, and other tenant charges
and security deposits (including any portion thereof which may be designated
as prepaid rent) under Leases, if and to the extent that such deposits are
in Seller’s actual possession or control and have not been otherwise applied
by Seller to any obligations of any Tenants under the Leases and any
interest earned thereon which by law or the terms of the Leases could be
required to be paid or refunded to Tenants, shall be assigned to Buyer and
either delivered to Buyer or, at Buyer’s option, credited to Buyer against
the Purchase Price, and upon the Closing, Buyer shall assume full
responsibility for all security deposits to be refunded to the Tenants under
the Leases (to the extent the same are required to be refunded by the terms
of such Leases or applicable). In the event that any security deposits are
in a form other than cash (the instrument constituting such security
deposits shall be known as, the “Non-Cash Security Deposits”),
Seller will, at Closing cause Buyer to be named as beneficiary under the
Non-Cash Security Deposits. Buyer will not receive a credit against the
Purchase Price for such security deposits. In the event that Buyer cannot
be named the beneficiary under the Non-Cash Security Deposits as of the
Closing Date, a cash escrow equal to the amount of the Non-Cash Security
Deposit will be established at the Close of Escrow until the Non-Cash
Security Deposits are reissued in Buyer’s name. Prior to such time of
reissue, Buyer shall be entitled to draw from such cash escrow in the event
the terms of the relevant lease entitle the Buyer, as landlord, to draw on
the Non-Cash Security Deposit.

(f) Leasing Costs. Seller shall receive a credit at the
Closing for all leasing costs, including tenant improvement costs and
allowances, and its pro-rata leasing commissions, previously paid by Seller
in connection with any Lease or modification to an existing Lease which was
entered into after the Effective Date and which is approved or deemed
approved by Buyer pursuant to this Agreement, which approval included
approval of the tenant improvement costs. The Seller’s pro-rata share
shall be equal to a fraction which has as its numerator the number of months
left in the base term of the Lease after the Close of Escrow and which has
as its denominator the number of months in the base term of the Lease.
Seller shall pay for all tenant improvement allowances and leasing
commissions with respect to the premises leased as of the Effective Date by
the Tenants pursuant to the Leases in effect as of the Effective Date, to
the extent that such improvement allowances and leasing commissions are
unpaid as of the Close of Escrow.

(g) Percentage Rent. Any percentage rents due or paid under
any of the Leases (“Percentage Rent”) shall be prorated between
Buyer and Seller outside of Closing as of the Close of Escrow on a
Lease-by-Lease basis, as follows; (a) Seller shall be entitled to receive
the portion of the Percentage Rent under each Lease for the Lease Year in
which Closing occurs, which portion shall be the ratio of the number of days
of said Lease Year in which Seller was Landlord under the Lease to the total
number of days in the Lease Year, and (b) Buyer shall receive the balance of
Percentage Rent paid under each Lease for the Lease Year. As used herein,
the term “Lease Year” means the twelve (12) month period as to which
annual Percentage Rent is owed under each Lease. Upon receipt by either
Buyer or Seller of any gross sales reports (“Gross Sales Reports”)
and any full or partial payment of Percentage Rent from any tenant of the
Property, the party receiving the same shall provide to the other party a
copy of the Gross Sales Report and a check for the other party’s prorata
share of the Percentage Rent within five (5) days of the receipt thereof.
In the event that the Tenant only remits a partial payment, then the amount
to be remitted to the other party shall be its prorata share of the partial
payment. Nothing contained herein shall be deemed or construed to require
either Buyer to Seller to pay to the other party its prorata share of the
Percentage Rent prior to receiving the Percentage Rent from the Tenant, and
the acceptance or negotiation of any check for Percentage Rent by either
party shall not be deemed a waiver of that party’s right to contest the
accuracy or amount of the Percentage Rent paid by the Tenant.

	 	6.7.2.	 	Calculation; Reproration. Seller shall prepare and deliver to Buyer
no later than three (3) business days prior to the Closing Date an estimated
closing statement which shall set forth all costs payable, and the prorations
and credits provided for in this Agreement and to the extent Seller does not
timely deliver the estimated closing statement to Buyer, Buyer shall have the
right, but not the obligation, to extent the Closing Date by the number of days
Seller is delinquent in delivering such estimated closing statement to Buyer.
Any item which cannot be finally prorated because of the unavailability of
information shall be tentatively prorated on the basis of the best data then
available and adjusted when the information is available in accordance with
this subsection. Buyer shall notify Seller within two (2) days after its
receipt of such estimated closing statement of any items which Buyer disputes,
and the parties shall attempt in good faith to reconcile any differences not
later than one (1) day before the Close of Escrow. The estimated closing
statement as adjusted as aforesaid and approved in writing by the parties
(which shall not be withheld if prepared in accordance with this Agreement)
shall be referred to herein as the “Closing Statement”. If the
prorations and credits made under the Closing Statement shall prove to be
incorrect or incomplete for any reason, then either party shall be entitled to
an adjustment to correct the same; provided, however, that any adjustment shall
be made, if at all, within sixty (60) days after the Close of Escrow (except
with respect to CAM Charges and Taxes, in which case such adjustment shall be
made within thirty (30) days after the information necessary to perform such
adjustment is available), and if a party fails to request an adjustment to the
Closing Statement by a written notice delivered to the other party within the
applicable period set forth above (such notice to specify in reasonable detail
the items within the Closing Statement that such party desires to adjust and
the reasons for such adjustment), then the prorations and credits set forth in
the Closing Statement shall be binding and conclusive against such party.

	 	6.7.3.	 	Items Not Prorated. Seller and Buyer agree that (a) on the Close of
Escrow, the Property will not be subject to any financing arranged by Seller;
(b) none of the insurance policies relating to the Property will be assigned to
Buyer and Buyer shall be responsible for arranging for its own insurance as of
the Close of Escrow; and (c) utilities, including telephone, electricity, water
and gas, shall be read on the Close of Escrow and Buyer shall be responsible
for all the necessary actions needed to arrange for utilities to be transferred
to the name of Buyer on the Close of Escrow, including the posting of any
required deposits and Seller shall be entitled to recover and retain from the
providers of such utilities any refunds or overpayments to the extent
applicable to the period prior to the Close of Escrow, and any utility deposits
which it or its predecessors may have posted. Accordingly, there will be no
prorations for debt service, insurance or utilities. In the event a meter
reading is unavailable for any particular utility, such utility shall be
prorated in the manner provided in Section 6.7.2 above.

	 	6.7.4.	 	Indemnification. Buyer and Seller shall each indemnify, protect,
defend and hold the other harmless from and against any claim in any way
arising from the matters for which the other receives a credit or otherwise
assumes responsibility pursuant to this Section.

	 	6.7.5.	 	Survival. This Section shall survive the Close of Escrow.

	 	6.8.	 	Determination of Dates of Performance.

Promptly after delivery to Buyer of the Title Documents, Escrow Holder shall prepare
and deliver to Buyer and Seller a schedule which shall state each of the following
dates:

	 	6.8.1.	 	The Effective Date pursuant to Section 2.1.1;

	 	6.8.2.	 	The date of receipt of the Title Documents by Buyer;

	 	6.8.3.	 	The date by which title must be approved by Buyer pursuant to
Section 3.2;

	 	6.8.4.	 	The Delivery Date pursuant to Section 4.1;

	 	6.8.5.	 	The date by which the Inspections and Due Diligence Items must be approved by
Buyer pursuant to Section 3.2;

	 	6.8.6.	 	The date by which the amounts described in Section 2 must be
deposited by Buyer, for which determination Escrow Holder shall assume
satisfaction of the condition expressed in Section 2 on the last date stated
for its satisfaction; and

	 	6.8.7.	 	The date of Close of Escrow pursuant to Section 6.2.

If any events which determine any of the aforesaid dates occur on a date other than
the date specified or assumed for its occurrence in this Agreement, Escrow Holder
shall promptly redetermine as appropriate each of the dates of performance in the
aforesaid schedule and notify Buyer and Seller of the dates of performance, as
redetermined.

7. Seller Representations, Warranties, and Covenants.

	 	7.1.	 	Representations and Warranties.

Seller hereby represents and warrants, as of the date hereof and as of the Close of
Escrow by appropriate certificate to Buyer as follows:

	 	7.1.1.	 	Organization and Authorization. Seller is a limited partnership duly
formed and validly existing under the laws of the State of Texas. Seller has
full power and authority to enter into this Agreement, to perform this
Agreement and to consummate the transactions contemplated hereby. The
execution, delivery and performance of this Agreement and all documents
contemplated hereby by Seller have been duly and validly authorized by all
necessary action on the part of Seller and all required consents and approvals
have been duly obtained and will not result in a breach of any of the terms or
provisions of, or constitute a default under, any indenture, agreement or
instrument to which Seller is a party or otherwise bound. This Agreement is a
legal, valid and binding obligation of Seller, enforceable against Seller in
accordance with its terms, subject to the effect of applicable bankruptcy,
insolvency, reorganization, arrangement, moratorium or other similar laws
affecting the rights of creditors generally.

	 	7.1.2.	 	No Conflicting Agreements. The execution and delivery by Seller of,
and the performance of and compliance by Seller with, the terms and provisions
of this Agreement, do not (1) conflict with, or result in a breach of, the
terms, conditions or provisions of, or constitute a default under, Seller’s
Articles of Incorporation, By-Laws, or any other agreement or instrument to
which Seller is a party or by which all or any part of the Property is bound,
(2) violate any restriction, requirement, covenant or condition to which all or
any part of the Property is bound, (3) to the knowledge of Seller, constitute a
violation of any applicable code, resolution, law, statute, regulation,
ordinance or rule applicable to Seller or the Property, (4) constitute a
violation of any judgment, decree or order applicable to Seller or specifically
applicable to the Property, or (5) require the consent, waiver or approval of
any third party.

	 	7.1.3.	 	Title. To Seller’s knowledge, Seller has good and marketable title
to the Real Property, subject to the Permitted Exceptions. There are no
outstanding rights of first refusal, rights of reverter or options relating to
the Real Property or any interest therein other than as disclosed. To Seller’s
knowledge, there are no unrecorded or undisclosed documents or other matters
which affect title to the Real Property. Subject to the Leases, Seller has
enjoyed the continuous and uninterrupted quiet possession, use and operation of
the Real Property, without material complaint or objection by any person.

	 	7.1.4.	 	FIRPTA. Seller is not a “foreign person” within the meaning of
Section 1445(f) of the Internal Revenue Code of 1986, as amended (the
“Code”).

	 	7.1.5.	 	Employees. There are no on-site employees of Seller at the Real
Property, and following the Close of Escrow, Buyer shall have no obligation to
employ or continue to employ any individual employed by Seller or its
affiliates in connection with the Real Property.

	 	7.1.6.	 	Litigation. Except as set forth on any schedule of litigation
delivered pursuant to Section 4.1.9, there are no actions, suits or
proceedings pending, or to Seller’s knowledge, threatened against Seller and
affecting any portion of the Real Property, at law or in equity, or before or
by any federal, state, municipal, or other governmental court, department,
commission, board, bureau, agency, or instrumentality, domestic or foreign.

	 	7.1.7.	 	Compliance with Laws and Environmental Conditions. Except as
expressly set forth in the Due Diligence Items, Seller has not received any
written notice from any governmental or quasi-governmental authority of any
violations of any applicable federal, state or local laws, statutes, rules,
regulations, ordinances, orders or requirements (collectively, “Laws”)
noted or issued by any governmental authority having jurisdiction over or
affecting the Property, including, without limitation, Laws relating to
“Hazardous Materials”. For purposes of this Agreement, “Hazardous
Materials” are substances defined as: “toxic substances,” “toxic
materials,” “hazardous waste,” “hazardous substances,” “pollutants,” or
“contaminants” as those terms are defined in the Resource, Conservation and
Recovery Act of 1976, as amended (42 U.S.C. § 6901 et. seq.),
the Comprehensive Environmental Response Compensation and Liability Act of
1980, as amended (42 U.S.C. § 9601 et. seq.), the Hazardous
Materials Transportation Act, as amended (49 U.S.C. § 1801 et.
seq.), the Toxic Substances Control Act of 1976, as amended (15 U.S.C.
§ 2601 et. seq.), the Clean Air Act, as amended (42 U.S.C. §
1251 et. seq.) and any other federal, state or local law,
statute, ordinance, rule, regulation, code, order, approval, policy and
authorization relating to health, safety or the environment; asbestos or
asbestos-containing materials; lead or lead-containing materials; oils;
petroleum-derived compounds; pesticides; or polychlorinated biphenyls. No part
of the Property has been previously used by Seller, or to the knowledge of
Seller, by any other person or entity, for the storage, manufacture or disposal
of Hazardous Materials, except as may be disclosed in the Due Diligence Items
and except as used in Seller’s normal course of business and the normal course
of business of the tenants of the Property (such as cleaning products and
typical medical materials). Except as set forth in the Due Diligence Items, to
the knowledge of Seller, there are no underground storage tanks of any nature
located on any of the Property. The Due Diligence Items are all the reports in
Seller’s possession dealing with environmental matters relating to the
Property.

	 	7.1.8.	 	Unpaid Claims. There are no unpaid bills, claims, or liens in
connection with any construction or repair of the Real Property except for
those that will be paid in the ordinary course of business prior to Close of
Escrow or which have been bonded over or the payment of which has otherwise
been adequately provided for to the satisfaction of Buyer.

	 	7.1.9.	 	Defects. To Seller’s knowledge, Seller has not experienced any
material physical or mechanical defects in the buildings or any material
settlement or earth movement affecting the Real Property during Seller’s period
of ownership.

	 	7.1.10.	 	Zoning. To Seller’s knowledge, the zoning of the Real Property
permits the current building and use of the Real Property, and to Seller’s
knowledge there is no pending, or contemplated, rezoning. To Seller’s
knowledge, the Real Property complies with all applicable subdivision laws and
all local ordinances enacted thereunder and no subdivision or parcel map not
already obtained is required to transfer the Real Property to Buyer.

	 	7.1.11.	 	Leases. To Seller’s knowledge, the information in the Rent Roll is
true, correct, and complete. Seller has or will pursuant to Section 4
and Section 7.3 deliver to Buyer what Seller believes are true,
accurate and complete copies of all of the Leases and there are no leases,
subleases, licenses, occupancies or tenancies in effect pertaining to any
portion of the Real Property, and no persons, tenants or entities occupy space
in the Real Property, except as stated in the Rent Roll. There are no options
or rights to renew, extend or terminate the Leases or expand any Lease
premises, except as shown in the Rent Roll and the Leases. No brokerage
commission or similar fee is due or unpaid by Seller with respect to any Lease,
and there are no written or oral agreements that will obligate Buyer, as
Seller’s assignee, to pay any such commission or fee under any Lease or
extension, expansion or renewal thereof. The Leases and any guaranties thereof
are in full force and effect, and are subject to no defenses, setoffs or
counterclaims for the benefit of the Tenants thereunder. Neither Seller nor,
to Seller’s knowledge, any Tenant is in default under its Lease. Seller is in
full compliance with all of the landlord’s obligations under the Leases, and
Seller has no obligation to any Tenant under the Leases to further improve such
Tenant’s premises or to grant or allow any rent or other concessions except as
stated in the Leases. No rent or other payments have been collected in advance
for more than one (1) month and no rents or other deposits are held by Seller,
except the security deposits described on the Rent Roll and rent for the
current month. Except as stated in the Leases, each rental concession, rental
abatement or other benefit granted to Tenants under the Leases will have been
fully utilized prior to the Close of Escrow.

	 	7.1.12.	 	Condemnation Proceedings. To Seller’s knowledge, there are no
presently pending or contemplated proceedings to condemn the Real Property or
any part of it.

	 	7.1.13.	 	Utilities. To Seller’s knowledge, all water, sewer, gas, electric,
telephone and drainage facilities, and all other utilities required by law or
by the normal operation of the Real Property are connected to the Real Property
and are adequate to service the Real Property in its present use and normal
usage by the Tenants and occupants of the Real Property and are in good working
order and repair.

	 	7.1.14.	 	Permits. To Seller’s knowledge, Seller has all licenses, permits
(including, without limitation, all building permits and occupancy permits),
easements and rights-of-way which are required in order to continue the present
use of the Real Property and ensure adequate vehicular and pedestrian ingress
and egress to the Real Property.

	 	7.1.15.	 	Contracts. Except for the Leases set forth on Exhibit B and
the Contracts set forth on Exhibit D, to Seller’s knowledge, there are
no agreements, written or oral, relating to the management, leasing, operation,
maintenance and/or improvement of the Property or any portion thereof. Seller
has not delivered or received any notice alleging any default in the
performance or observance of any of the covenants, conditions or obligations to
be kept, observed or performed under any of the Contracts. To Seller’s
knowledge, Seller has delivered to Buyer a true, correct and complete copy of
each of the Contracts (including all amendments thereto).

	 	7.1.16.	 	Personal Property. Seller has good title to all the Personal
Property and the execution and delivery to Buyer of the Assignment and
Assumption Agreement shall vest good title to all of the Personal Property in
Buyer, free and clear of liens, encumbrances and adverse claims.

	 	7.1.17.	 	Operating Statements. To Seller’s knowledge, the operating
statements for the Property furnished to Buyer in connection with or pursuant
to this Agreement (a) are the only operating statements for the Property for
the operating period to which they relate that have been prepared by or for
Seller (b) accurately reflect the financial condition of the Real Property as
of the date thereof and (c) do not fail to state any material liability,
contingent or otherwise, or any other facts the omission of which would be
misleading.

	 	7.1.18.	 	Rights. Neither Seller nor, to Seller’s knowledge, any previous
owner of the Real Property has, except by operation of law, sold, transferred,
conveyed, or entered into any agreement regarding “air rights,” “excess floor
area ratio,” or other rights or restrictions relating to the Real Property
except as otherwise expressly set forth in the Title Policy for the Real
Property.

	 	7.1.19.	 	Due Diligence Items. To Seller’s knowledge, the Due Diligence Items
provided to Buyers constitute all of the material documents, information, data,
reports or written materials that are related to the Property in Seller’s
possession or known to Seller and to Seller’s knowledge, do not contain any
material inaccuracies; provided, however, that Buyer acknowledges that many Due
Diligence Items provided were not prepared by Seller and relate to periods
prior to Seller’s ownership of the Property. While Seller is not aware,
without investigation, of any material inaccuracies in the same, such is being
provided without representation and warranty except as otherwise set forth
above.

	 	7.1.20.	 	Mark Kennedy. Mark Kennedy is the President of National Healthcare
Properties, Inc., a Colorado corporation. Mark Kennedy is the employee,
officer, director, shareholder, member and/or representative of Seller with the
greatest knowledge of the matters set forth in this Section 7.1. There are no
other employees, officers, directors, shareholders, members or representatives
of Seller who have any material information relating to the matters set forth
in this Section 7.1 which are not known to Mark Kennedy.

	 	7.2.	 	Survival.

As used herein, the term “Seller’s knowledge” shall mean the actual knowledge,
without investigation, of Mark Kennedy and only of Mark Kennedy. The foregoing
representations and warranties of Seller are made by Seller as of the date hereof
and again as of Close of Escrow and shall survive the Close of Escrow and shall not
be merged as of the date of the Close of Escrow hereunder; provided, however, that
such survival shall expire on the earlier of (i) nine (9) months from the Closing
Date, and (ii) December 31, 2008. Subject to the limitations in Section 13 below,
to the greatest extent permissible by law, Seller shall reimburse, indemnify, defend
and hold harmless Buyer from any and all causes of action, claims, demands, losses,
liabilities, costs or expenses (including, without limitation, reasonable attorneys’
fees and expenses) arising as a result of any breach of a representation or warranty
made in this Agreement by Seller  and/or from any transactions or occurrences
relating to the Property prior to the Closing Date, other than  as a result of the
acts of Buyer and/or any of Buyer’s employees, agents, representatives, contractors
or invitees upon the Property. The terms of Seller’s indemnity set forth above with
respect to the representations and warranties made herein shall survive following
the Close of Escrow.

	 	7.3.	 	Covenants of Seller. Seller hereby covenants from and after the
Effective Date as follows:

	 	7.3.1.	 	To cause to be in force fire and extended coverage insurance upon the Real
Property, and public liability insurance with respect to damage or injury to
persons or property occurring on the Real Property in at least such amounts,
and with the same deductibles, as are maintained by Seller on the date hereof.

	 	7.3.2.	 	To maintain any building constituting an improvement on the Real Property in
the same physical condition as it was at the date of Buyer’s inspection,
reasonable wear and tear excepted, and to perform all normal maintenance from
and after the Effective Date in the same fashion as prior to the Effective
Date.

	 	7.3.3.	 	To not enter into any new lease with respect to the Real Property, without
Buyer’s prior written consent. Exercise of a mandatory renewal option shall
not be considered a new lease. To the extent specifically disclosed to and
approved by Buyer in connection with any request for approval, any brokerage
commission and the cost of Tenant improvements or other allowances payable with
respect to a new Lease shall be prorated between Buyer and Seller in accordance
with their respective periods of ownership as it bears to the primary term of
the new Lease. Further, Seller will not modify or cancel any existing Lease
covering space in the Real Property without first obtaining the written consent
of Buyer. Buyer shall have five (5) business days following receipt of a
request for any consent pursuant to this Section in which to approve or
disapprove of any new Lease or any modification or cancellation of any existing
Lease. Failure to respond in writing within said time period shall be deemed
to be disapproval. Seller’s execution of a new lease or modification or
cancellation of an existing Lease following Buyer’s reasonable refusal to
consent thereto shall constitute a default hereunder. Before the expiration of
the Due Diligence Period, Buyer may not unreasonably withhold its consent under
this Section 7.3.3; after the expiration of the Due Diligence Period,
Buyer shall have sole discretion in all such matters.

	 	7.3.4.	 	To not sell, assign, or convey any right, title, or interest whatsoever in or
to the Real Property, or create or permit to attach any lien, security
interest, easement, encumbrance, charge, or condition affecting the Real
Property (other than the Permitted Exceptions).

	 	7.3.5.	 	To not, without Buyer’s written approval, (a) amend or waive any right under
any Contract, or (b) enter into any service, operating or maintenance agreement
affecting the Real Property that would survive the Close of Escrow.

	 	7.3.6.	 	To fully and timely comply with all obligations to be performed by it under
the Leases and Contracts, and all Permits, licenses, approvals and laws,
regulations and orders applicable to the Real Property.

	 	7.3.7.	 	To provide Buyer with monthly rent rolls containing the same information in
its Rent Roll delivered pursuant to Section 4.1.3.

	 	7.3.8.	 	To provide Buyer with copies of (a) any default letters sent to or received
from Tenants and, (b) any copies of correspondence received from a Tenant that
it is discontinuing operations at the Property or seeking to re-negotiate its
lease and (c) notices of bankruptcy filings received with respect to any
Tenant.

	 	7.3.9.	 	To use commercially reasonable efforts to obtain subordination, attornment
and non-disturbance agreements and estoppel certificates from all tenants, on
the form provided by the Buyer.

	 	7.3.10.	 	To operate the Real Property from and after the date hereof in substantially
the same manner as prior thereto.

	 	7.3.11.	 	To deliver to Buyer copies of Tenant insurance certificates, prior to the
Close of Escrow.

	 	7.3.12.	 	To terminate the Terminated Contracts.

8. Buyer Representations and Warranties.

Buyer hereby represents and warrants to Seller as of the date hereof and as of the Close of
Escrow by appropriate certificate that:

	 	8.1.1.	 	Organization and Authorization. Buyer is a limited liability company
duly organized and validly existing under the laws of the Commonwealth of
Virginia. Buyer has full power and authority to enter into this Agreement, to
perform this Agreement and to consummate the transactions contemplated hereby.
This Agreement is a legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms, subject to the effect of applicable
bankruptcy, insolvency, reorganization, arrangement, moratorium or other
similar laws affecting the rights of creditors generally.

	 	8.1.2.	 	No Conflicting Agreements. The execution, delivery and performance
of this Agreement and all documents contemplated hereby by Buyer have been duly
and validly authorized by all necessary action on the part of Buyer and all
required consents and approvals have been duly obtained and will not result in
a breach of any of the terms or provisions of, or constitute a default under,
any indenture, agreement or instrument to which Buyer is a party or otherwise
bound.

9. Conditions Precedent to Close of Escrow.

	 	9.1.	 	Conditions Precedent.

The obligations of Buyer to purchase the Property pursuant to this Agreement shall,
at the option of Buyer, be subject to the following conditions precedent:

	 	9.1.1.	 	All of the representations, warranties and agreements of Seller set forth in
this Agreement shall be true and correct in all material respects as of the
date hereof and as of the Close of Escrow, and Seller shall not have on or
prior to the Close of Escrow, failed to meet, comply with or perform in any
material respect any covenants or agreements on Seller’s part as required by
the terms of this Agreement.

	 	9.1.2.	 	There shall be no change in the matters reflected in the Title Documents, and
there shall not exist any encumbrance or title defect affecting the Real
Property not described in the Title Documents except for the Permitted
Exceptions or matters to be satisfied at the Close of Escrow.

	 	9.1.3.	 	On the Closing Date, the Title Insurance Company shall be unconditionally
obligated and prepared, subject to the payment of the applicable title
insurance premium and other related charges, to issue to Buyer the Title
Policy.

	 	9.1.4.	 	Unless Seller receives notice from Buyer at least thirty (30) days prior to
the Close of Escrow, effective as of the Close of Escrow, any management
agreement affecting the Real Property shall be terminated by Seller and any and
all termination fees incurred as a result thereof shall be the sole obligation
of Seller.

	 	9.1.5.	 	No Major Tenant shall be in default under its Lease nor shall any Major
Tenant have given notice that it is discontinuing operations at the Real
Property nor shall a Major Tenant filed bankruptcy or sought any similar debtor
protective measure or be the subject of an involuntary bankruptcy.

	 	9.1.6.	 	Seller shall obtain and deliver to Buyer, no later than ten (10) days prior
to Close of Escrow, (a) estoppel certificates from all of the tenants, (b)
subordination, nondisturbance and attornment agreements (“SNDAs”) from
the following tenants: NW Diagnostic Clinic, North Houston Gastro and Southeast
Texas Oncology (each, a “Major Tenant”), and (c) estoppel certificates
from all parties to or owners of property subject to any reciprocal
construction, easement, operating or similar agreement affecting the Property
and from the declarant, architectural committee and/or association, as
applicable, under any declaration of covenants, conditions or restrictions
affecting the Property, in all cases (other than the association, which uses
its own form) on forms provided by (or otherwise approved by) Buyer dated no
earlier than thirty (30) days prior to the Close of Escrow. The matters
certified in the estoppel certificates and any modifications to the SNDA forms
shall be subject to Buyer’s reasonable approval. Buyer shall notify Seller
within three (3) days before the Close of Escrow of Buyer’s approval or
disapproval and the basis of such disapproval, if disapproved. If Buyer
disapproves of any estoppel certificate or SNDA, and Seller is unable to
deliver, in Buyer’s good faith business judgment, a reasonably acceptable
estoppel certificate or SNDA (as the case may be) prior to the Close of Escrow,
the Buyer shall have the right to terminate this Agreement and to obtain a
refund of the Deposit without any further action required by any party, and
neither party shall have any further obligation to the other, and the same
shall not constitute a default of Seller, provided Buyer shall have the right
to terminate this Agreement and receive a refund of the Deposit in accordance
with Section 9.2 below.

	 	9.1.7.	 	All Non-Cash Security Deposits, if any, must be reissued in Buyer’s name as
of the Close of Escrow or else a cash escrow equal to all Non-Cash Security
Deposits must be established at the Close of Escrow until all Non-Cash Security
Deposits are reissued in Buyer’s name. Prior to such time as all Non-Cash
Security Deposits are reissued, Buyer shall be entitled to draw from such cash
escrow in the event the terms of the relevant lease entitle the Buyer, as
landlord, to draw on the Non-Cash Security Deposits. The provisions of this
section shall survive the Close of Escrow.

	 	9.1.8.	 	There shall be no change in the zoning classification or the zoning
ordinances or regulations affecting the Property from that existing as of the
conclusion of the Due Diligence Period.

	 	9.1.9.	 	Except as disclosed in the Due Diligence Items, on the Closing Date, no
action or proceeding shall have been instituted or be threatened before any
court or governmental authority (A) that relates to the Property and affects
the Property after the Close of Escrow or (B) that seeks to restrain or
prohibit, or to obtain substantial damages in respect of, or which is related
to or arises out of, this Agreement or the consummation of the transactions
contemplated herein, unless Seller has demonstrated, to Buyer’s reasonable
satisfaction, that any costs and liabilities to be incurred in connection with
such matters are fully covered by Seller’s insurance.

	 	9.1.10.	 	As of the Closing Date, Seller shall not have commenced (within the meaning
of any Bankruptcy Law) a voluntary case, nor shall there have been commenced
against Seller an involuntary case, nor shall Seller have consented to the
appointment of a Custodian of it or for all or any substantial part of its
property, nor shall a court of competent jurisdiction have entered an order or
decree under any Bankruptcy Law that is for relief against Seller in an
involuntary case or appoints a Custodian of Seller for all or any substantial
part of its property. The term “Bankruptcy Law” means Title 11, U.S. Code, or
any similar state law for the relief of debtors. The term “Custodian” means
any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

	 	9.2.	 	Effect of Failure.

If Buyer notifies Seller of a failure to satisfy the conditions precedent set forth
in this Section 9, Seller may, within five (5) days after receipt of Buyer’s
notice, agree to satisfy the condition by written notice to Buyer, and Buyer shall
thereupon be obligated to close the transaction provided (a) Seller so satisfies
such condition and (b) no such right to cure shall extend the Close of Escrow. If
Seller fails to agree to cure or fails to cure such condition by the Close of
Escrow, this Agreement shall be automatically terminated, the Deposit shall be
returned to Buyer without any further action required from either party and neither
party shall have any continuing obligations hereunder; provided, however, if such
failure constitutes a breach or default of its covenants, representations or
warranties Seller shall remain liable for such breach or default as otherwise set
forth in this Agreement.

10. Damage or Destruction Prior to Close of Escrow.

In the event that the Real Property should be damaged and/or destroyed by fire or any other
casualty prior to Close of Escrow, then Seller shall promptly provide Buyer with written
notice of such casualty. If the cost of repairing such damage, as estimated by an architect
or contractor retained pursuant to the mutual agreement of the parties (the “Cost of
Repairs”), is (a) less than One Hundred Thousand Dollars ($100,000), the Close of Escrow
shall proceed as scheduled and any insurance proceeds, plus the cash amount of any
associated deductible, shall be paid over to Buyer; or (b) greater than Three Hundred Fifty
Thousand Dollars ($350,000), then Buyer may in its discretion either (i) elect to terminate
this Agreement, in which case the Deposit shall be returned to Buyer without any further
action required from either party, Buyer and Seller shall each be liable for one-half of any
escrow fees or charges and neither party shall have any further obligation to the other or
(ii) proceed to Close of Escrow in which event any insurance proceeds, plus the cash amount
of any associated deductible, shall be paid over to Buyer. In the event that the casualty
is uninsured, the Buyer may terminate this Agreement unless the Buyer receives a credit
against the Purchase Price equal to the Cost of Repairs. The foregoing notwithstanding, in
the event any casualty results in the cancellation of, or rental abatement under, any Lease,
Buyer shall have the option to terminate this Agreement without regard to the cost of
repairs. Any notice required to terminate this Agreement pursuant to this Section shall be
delivered no later than thirty (30) days following Buyer’s receipt of Seller’s notice of
such casualty.

11. Eminent Domain.

If, before the Close of Escrow, proceedings are commenced for the taking by exercise of the
power of eminent domain of all or a material part of the Real Property which, as reasonably
determined by Buyer, would render the Real Property unacceptable to Buyer or unsuitable for
Buyer’s intended use, Buyer shall have the right, by giving written notice to Seller within
thirty (30) days after Seller gives notice of the commencement of such proceedings to Buyer,
to terminate this Agreement, in which event this Agreement shall automatically terminate,
the Deposit shall be returned to Buyer without any further action required from either
party, Buyer and Seller shall each be liable for one-half of any escrow fees or charges and
neither party shall have any continuing obligations hereunder. If, before the Close of
Escrow, proceedings are commenced for the taking by exercise of the power of eminent domain
of less than a material part of the Real Property, or if Buyer has the right to terminate
this Agreement pursuant to the preceding sentence but Buyer does not exercise such right,
then this Agreement shall remain in full force and effect and, on the Close of Escrow, the
condemnation award (or, if not theretofore received, the right to receive such portion of
the award) payable on account of the taking shall be assigned, or paid to, Buyer. Seller
shall give written notice to Buyer within three (3) business days after Seller’s receiving
notice of the commencement of any proceedings for the taking by exercise of the power of
eminent domain of all or any part of the Real Property. The foregoing notwithstanding, in
the event the taking results in the cancellation of, or rent abatement under, any Lease,
Buyer shall have the option to terminate this Agreement.

12. Notices.

All notices, demands, or other communications of any type given by any party hereunder,
whether required by this Agreement or in any way related to the transaction contracted for
herein, shall be void and of no effect unless given in accordance with the provisions of
this Section. All notices shall be in writing and delivered to the person to whom the
notice is directed, either (a) in person, (b) by United States Mail, as a registered or
certified item, return receipt requested, (c) by facsimile transmission (with confirmation
by a nationally recognized overnight delivery service), or (d) by a nationally recognized
overnight delivery service. Notices transmitted to the then designated facsimile number of
the party intended shall be deemed received upon electronic verification of receipt by the
sending machine, notices sent by a nationally recognized overnight delivery service shall be
deemed received on the next business day and notices delivered by certified or registered
mail shall be deemed delivered three (3) days following posting. Notices shall be given to
the following addresses:

	 	 	 	 	 
	Seller:
	 	National Healthcare Properties, Inc.
	 
	 	4885 Riverbed Drive, Suite D
	 
	 	Boulder, CO  80303
	 
	 	Attn:  Mark Kennedy
	 
	 	 	(720) 352-4433	 
	 
	 	mark@healthproperties.net
	With Required Copy to:
	 	Leggett & Clemons, PLLC
	 
	 	2745 North Dallas Parkway, Suite 310
	 
	 	Plano, Texas 75093
	 
	 	Attn:  Whitney Bowling
	 
	 	 	(214) 473-8686	 
	 
	 	 	(866) 838-4574	 
	 
	 	wbowling@leggettandclemons.com
	Buyer:
	 	Grubb & Ellis Realty Investors, LLC
	 
	 	1551 N. Tustin Avenue, Suite 200
	 
	 	Santa Ana, CA  92705
	 
	 	Attn: Danny Prosky, Vice President – Acquisitions and
	 
	 	Mathieu Streiff, Esq.
	 
	 	 	(714)  667-8252	 
	 
	 	(714)  667-6816  Fax
	With Required Copy to:
	 	Cox, Castle & Nicholson LLP
	 
	 	2049 Century Park East, Suite 2800
	 
	 	Los Angeles, CA 90067
	 
	 	Attn:  David P. Lari, Esq.
	 
	 	 	(310) 284-2292	 
	 
	 	(310) 277-7889  Fax

13. Remedies.

	 	13.1.	 	Defaults by Seller. IF SELLER DEFAULTS IN PERFORMING ANY MATERIAL
COVENANTS OR AGREEMENTS TO BE PERFORMED BY SELLER UNDER THIS AGREEMENT OR IF SELLER
BREACHES ANY MATERIAL REPRESENTATIONS OR WARRANTIES MADE BY SELLER IN THIS AGREEMENT,
FOLLOWING NOTICE TO SELLER AND SEVEN (7) DAYS THEREAFTER DURING WHICH PERIOD SELLER MAY
CURE THE DEFAULT, BUYER MAY, IN ITS SOLE AND ABSOLUTE DISCRETION, (I) TERMINATE THIS
AGREEMENT AND RECEIVE A RETURN OF ALL EARNEST MONEY, OR (II) BRING AN ACTION FOR
SPECIFIC PERFORMANCE. IN THE BUYER TERMINATES THIS AGREEMENT IN ACCORDANCE WITH THE
PRECEDING SENTENCE, BUYER SHALL HAVE THE RIGHT TO RECOVER ALL ACTUAL OUT-OF-POCKET
DAMAGES CAUSED BY SELLER’S BREACH OR DEFAULT; PROVIDED, HOWEVER, THAT SELLER’S
LIABILITY TO BUYER HEREUNDER SHALL NOT EXCEED ONE HUNDRED THOUSAND AND NO/100 DOLLARS
($100,000.00).

	 	13.2.	 	Defaults by Buyer. IN THE EVENT THE SALE OF THE PROPERTY IS NOT
CONSUMMATED BECAUSE OF A MATERIAL DEFAULT UNDER THIS AGREEMENT ON THE PART OF BUYER, OR
IF BUYER DEFAULTS IN PERFORMING ANY MATERIAL COVENANTS OR AGREEMENTS TO BE PERFORMED BY
BUYER UNDER THIS AGREEMENT OR BUYER BREACHES ANY MATERIAL REPRESENTATION OR WARRANTY
MADE BY BUYER IN THIS AGREEMENT, FOLLOWING NOTICE TO BUYER AND SEVEN (7) DAYS, DURING
WHICH PERIOD BUYER MAY CURE THE DEFAULT, SELLER MAY DECLARE THIS AGREEMENT TERMINATED,
IN WHICH CASE, THE DEPOSIT SHALL BE PAID TO AND RETAINED BY SELLER AS LIQUIDATED
DAMAGES. THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT THE SALE
OF THE PROPERTY IS NOT CONSUMMATED SOLELY BECAUSE OF A DEFAULT BY BUYER, WOULD BE
EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY PLACING THEIR
INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE DEPOSIT HAS BEEN AGREED UPON, AFTER
NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES AND AS SELLER’S
SOLE AND EXCLUSIVE REMEDY AGAINST BUYER, AT LAW OR IN EQUITY, IN THE EVENT THE SALE OF
THE PROPERTY IS NOT CONSUMMATED SOLELY BECAUSE OF A DEFAULT UNDER THIS AGREEMENT ON THE
PART OF BUYER AND EACH PARTY SHALL THEREUPON BE RELIEVED OF ALL FURTHER OBLIGATIONS AND
LIABILITIES, EXCEPT ANY WHICH SURVIVE TERMINATION. THE FOREGOING NOTWITHSTANDING, NO
RIGHT TO CURE SHALL EXTEND THE CLOSE OF ESCROW.

INITIALS: Seller /s/ JM Buyer /s/ JH

14. Assignment.

Seller shall not assign any of its right, title or interest in or to this Agreement. Buyer
may assign any or all of its rights and obligations under this Agreement to any one or more
persons or entities upon notice to Seller; provided however, that absent the express written
agreement of Seller, no such assignment shall release Buyer from its liabilities hereunder,
and such assignment shall be to a party related to or affiliated with Buyer.
Notwithstanding the foregoing, Seller acknowledges that it has been advised that Buyer may
assign this Agreement to a publicly registered company or the subsidiary of a publicly
registered company that is managed by, sponsored by or under common control with Buyer or
Buyer’s principals and that in such event the assignee will be required to make certain
filings with the Securities and Exchange Commission (the “SEC Filings”) that relate
to the most recent pre-acquisition fiscal year (the “Audited Year”) and the current
fiscal year through the date of acquisition (the “Stub Period”) for the Property.
To assist the assignee in preparing the SEC Filings, the Seller agrees to provide the
assignee with the following: (i) access to bank statements for the Audited Year and Stub
Period; (ii) rent roll as of the end of the Audited Year and Stub Period; (iii) operating
statements for the Audited Year and Stub Period; (iv) access to the general ledger for the
Audited Year and Stub Period; (v) cash receipts schedule for each month in the Audited Year
and Stub Period; (vi) access to invoices for expenses and capital improvements in the
Audited Year and Stub Period; (vii) accounts payable ledger and accrued expense
reconciliations in the Audited Year and Stub Period; (viii) check register for the three (3)
months following the Audited Year and Stub Period; (ix) the Lease and five (5) year lease
schedules, to the extent applicable; (x) copies of all insurance documentation for the
Audited Year and Stub Period; (xi) copies of accounts receivable aging as of the end of the
Audited Year and Stub Period along with an explanation for all accounts over thirty (30)
days past due as of the end of the Audited Year and Stub Period; and (xii) a signed
representation letter in the form attached hereto as Exhibit G. Notwithstanding the
above, Seller shall incur no cost or expense in compliance with this Section. The
provisions of the foregoing two (2) sentences shall survive the Closing.

15. Interpretation and Applicable Law.

This Agreement shall be construed and interpreted in accordance with the laws of the State
where the Real Property is located. Where required for proper interpretation, words in the
singular shall include the plural; the masculine gender shall include the neuter and the
feminine, and vice versa. The terms “successors and assigns” shall include the heirs,
administrators, executors, successors, and assigns, as applicable, of any party hereto.

16. Amendment.

This Agreement may not be modified or amended, except by an agreement in writing signed by
the parties. The parties may waive any of the conditions contained herein or any of the
obligations of the other party hereunder, but any such waiver shall be effective only if in
writing and signed by the party waiving such conditions and obligations.

17. Attorneys’ Fees.

In the event it becomes necessary for either party to file a suit to enforce this Agreement
or any provisions contained herein, the prevailing party shall be entitled to recover, in
addition to all other remedies or damages, reasonable attorneys’ fees and costs of court
incurred in such suit.

18. Entire Agreement; Survival.

This Agreement (and the items to be furnished in accordance herewith) constitutes the entire
agreement between the parties pertaining to the subject matter hereof and supersedes all
prior and contemporaneous agreements and understandings of the parties in connection
therewith. No representation, warranty, covenant, agreement, or condition not expressed in
this Agreement shall be binding upon the parties hereto nor shall affect or be effective to
interpret, change, or restrict the provisions of this Agreement. The obligations of the
parties hereunder and all other provisions of this Agreement shall survive the Close of
Escrow or earlier termination of this Agreement, except as expressly limited herein.

19. Counterparts.

This Agreement may be executed in any number of counterparts, all of which when taken
together shall constitute the entire agreement of the parties.

20. Time is of the Essence; Calculation of Time Periods.

Time is of the essence in this Agreement as to each provision in which time is an element of
performance. Unless otherwise specified, in computing any period of time described herein,
the day of the act or event after which the designated period of time begins to run is not
to be included and the last day of the period so computed is to be included, except that if
such last day falls upon a Saturday, Sunday, or legal holiday under the Federal law or laws
of the States of Texas or California, then such period shall run until the end of the next
day that is neither a Saturday, Sunday, or legal holiday under Federal law or the laws of
the States of Texas and California. The last day of any period of time described herein
shall be deemed to end at 11:59 p.m. Los Angeles, California time.

21. Real Estate Commission.

Seller and Buyer each represent and warrant to the other that neither Seller nor Buyer has
contacted or entered into any agreement with any real estate broker, agent, finder or any
other party in connection with this transaction, and that neither party has taken any action
which would result in any real estate broker’s, finder’s or other fees or commissions being
due and payable to any party with respect to the transaction contemplated hereby , except
that Seller has contracted with Chris Hansen from Newmark Knight Frank as its broker and
Seller shall be solely responsible for paying the commission to said broker from the
Purchase Price, but only if, the Close of Escrow occurs pursuant to this Agreement. Such
commission shall be payable upon the Close of Escrow from the proceeds of the Purchase Price
deposited by Buyer. Each party hereby indemnifies and agrees to hold the other party
harmless from any loss, liability, damage, cost, or expense (including reasonable attorneys’
fees) resulting to the other party by reason of a breach of the representation and warranty
made by such party in this Section.

22. Severability.

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

23. Further Assurances.

Each party will, whenever and as often as it shall be requested to do so by the other party,
execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered any
and all such further conveyances, assignments, approvals, consents and any and all other
documents and do any and all other acts as may be necessary to carry out the intent and
purpose of this Agreement.

24. Exclusivity.

Until the earlier of (i) March 31, 2008, and (ii) the date that this Agreement is
terminated, Seller shall not enter into any contract, or enter into or continue any
negotiations, to sell the Property to any person or entity other than Buyer; provided,
however, in the event the Close of Escrow does not occur on or before March 31, 2008 as a
result of a default by Seller, such period shall be extended on a day-by-day basis until
Seller cures such default.

	25.	 	Exhibits. The following exhibits are attached hereto and incorporated herein by this
reference:

	 	 	 
	Exhibit A.

	 	Legal Description of the Land
	 

	 	

	Exhibit B.

	 	Leases
	 

	 	

	Exhibit C.

	 	Security Deposits
	 

	 	

	Exhibit D.

	 	Contracts
	 

	 	

	Exhibit E.

	 	Assignment and Assumption Agreement
	 

	 	

	Exhibit F.

	 	Deed
	 

	 	

	Exhibit G.

	 	Audit Letter
	 

	 	

THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK

1

SIGNATURE PAGE FOR AGREEMENT FOR PURCHASE

AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS

SELLER:

NHP CYPRESS STATION PARTNERSHIP, LP,

a Texas limited partnership

	 	 	 	 	 
	By:	 	NHP Cypress Station, LLC,
	 	 	a Delaware limited liability company
	
 
	 	By:
	 	National Healthcare Properties, Inc.,

a Colorado corporation

/s/ John McCulloch

John H. McCulloch, Chief Executive Officer

BUYER:

GRUBB & ELLIS REALTY INVESTORS, LLC,

a Virginia limited liability company

By: /s/ Jeff Hanson

Name: Jeff Hanson

Title: Chief Investment Officer

ESCROW HOLDER:

The undersigned Escrow Holder accepts the foregoing Agreement for Purchase and Sale of Real
Property and Escrow Instructions and agrees to act as Escrow Agent under this Agreement in strict
accordance with its terms.

LAND AMERICA TITLE COMPANY

By: /s/ Lois McCauley

Name: Lois McCauley

Title: Escrow Officer

2EX-10.2

ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT (this “Assignment”) dated as of
March 25, 2008, is made and entered into by and between GRUBB & ELLIS REALTY INVESTORS, LLC, a
Virginia limited liability company (“Assignor”), and G&E HEALTHCARE REIT CYPRESS STATION,
LLC, a Delaware limited liability company (“Assignee”), with reference to the following
Recitals:

R E C I T A L S

A. Assignor is “Buyer” under that certain Purchase Agreement mutually executed as of February
22, 2008, by and between Assignor and NHP Cypress Station Partnership, LP, a Texas limited
partnership, as the same may be amended (the “Purchase Agreement”), wherein Assignor agreed
to purchase certain real property commonly known as Cypress Station Medical Office Building,
located at 1140 Cypress Station Drive, City of Houston, Harris County, State of Texas, as more
particularly described in the Purchase Agreement, on the terms and conditions set forth in the
Purchase Agreement.

B. Assignor desires to assign and transfer to Assignee, and Assignee desires to assume from
Assignor, all of Assignor’s right, title, claim and interest in, to and under the Purchase
Agreement.

NOW, THEREFORE, in consideration of the foregoing Recitals (which are incorporated herein by
this reference) and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Assignor and Assignee hereby agree as follows:

A G R E E M E N T

1. Assignment; Assumption. Assignor hereby assigns and transfers to Assignee all of
Assignor’s right, title, claim and interest as “Buyer” or otherwise in, to and under the Purchase
Agreement. By executing this Assignment, Assignee hereby accepts such assignment and expressly
agrees to assume and be bound by all of the provisions of the Purchase Agreement from and after the
date hereof.

2. Successors and Assigns. This Assignment shall inure to the benefit of, and be
binding upon, the successors, executors, administrators, legal representatives and assigns of the
parties hereto.

3. Counterparts. This Assignment may be executed in any number of counterparts with
the same effect as if all of the parties had signed the same document. All counterparts shall be
construed together and shall constitute one agreement.

[Signatures on next page]

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IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
duly authorized representatives as of the date first written above.

ASSIGNOR:

GRUBB & ELLIS REALTY INVESTORS, LLC,

a Virginia limited liability company

By: /s/ Jeff Hanson

Name: Jeff Hanson

Title: Chief Investment Officer

ASSIGNEE:

G&E HEALTHCARE REIT CYPRESS STATION, LLC,

a Delaware limited liability company

By: /s/ Shannon K S Johnson

Authorized Signatory

Shannon K S Johnson

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