Document:

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                                                                   EXHIBIT 10.16

                                 PURCHASE AND SALE AGREEMENT
                                 ---------------------------

     THIS PURCHASE AND SALE AGREEMENT ("Agreement") is made as of September 27,
1999 by and between INTELLIGENT LIFE CORPORATION, a Florida corporation
("Buyer"), having an address at 11811 U.S. Highway One, Suite 101, North Palm
Beach, Florida 33408, and WORKPLACE HOLDINGS, LTD., a Florida limited
partnership ("Seller"), having an address at 222 Lakeview Avenue, 17th Floor,
West Palm Beach, FL 33401.

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

     A.  Abacoa Development Company, a Delaware corporation ("Abacoa") is the
developer of a planned community known as Abacoa (the "Abacoa Project") located
on certain real property (which includes the real property referred to in this
Agreement) in the Town of Jupiter, Florida ("Town");

     B.  Seller intends to purchase from Abacoa certain real property comprising
the "Workplace District" of the Abacoa Project;

     C.  Buyer and WK3 Investors, Ltd., a Florida limited partnership ("WK3
Investors") that is an affiliate of Seller, have entered into a certain Lease
Agreement of even date herewith (the "Initial Project Lease"), pursuant to which
WK3 Investors will construct an office building, to be occupied by Buyer, on
certain land within the Workplace District (the "Initial Project") which is also
a portion of the "Workplace District" property to be purchased by Seller from
Abacoa;

     D.  Buyer has agreed to purchase from Seller, on the terms and conditions
of this Agreement, a portion of the "Workplace District" adjacent to the land on
which the Initial Project will be located in order to provide for the
construction of a second building as expansion space for Buyer when needed:

     NOW, THEREFORE,  for and in consideration of the mutual covenants herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree as
follows:

1.   AGREEMENT TO SELL AND PURCHASE.   Conditioned on Seller acquiring title to
     ------------------------------
the "Property", Seller agrees to convey to Buyer, and Buyer agrees to purchase
from Seller, for the price and upon and subject to the terms and conditions set
forth herein, a parcel of real property located in Palm Beach County, Florida,
containing approximately two and 15/100 (2.15) acres and shown on the sketch
attached hereto as Exhibit 1(a) (the "Property").  The Property is a portion of
Tract WK3 of Abacoa Plat No. 1, according to the plat thereof, as recorded in
Plat Book 78, Pages 145 through 163 inclusive, Public Records of Palm Beach
County, Florida.  Seller shall deliver to Buyer the legal description for the
Property within thirty (30) days after the date of this Agreement. Seller's
obligations hereunder are expressly contingent upon Seller acquiring title to
the Property.  In the event Seller does not acquire title to the Property by
December 31, 1999, this Agreement shall terminate, in which event the Deposit,
together with all interest thereon, shall be refunded to Buyer, whereupon all
obligations of the parties hereto shall cease and this Agreement shall be null
and void and without recourse to the parties hereto except with respect to
provisions hereof which specifically survive such termination.

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     2.  PURCHASE PRICE; DEPOSIT; ADJUSTMENTS; ESCROW.
         --------------------------------------------

     (a) Purchase Price:  The purchase price for the Property ("Purchase Price")
         --------------
shall be Six and 50/100 Dollars ($6.50) per square foot of the Property, which
is equal to Six Hundred Eight Thousand Seven Hundred Fifty One and No/100
Dollars ($608,751.00) based on the estimate of two and 15/100 (2.15) acres.  The
actual Purchase Price shall be determined when the legal description of the
Property has been finalized. The Purchase Price shall be payable as follows:

(i)  A deposit (the "Deposit") in the amount of Sixty Thousand and No/100
     Dollars ($60,000.00) shall be paid to Escrow Agent (as defined below) by
     Buyer, when the last party executes and delivers this Agreement, by wire
     transfer of immediately available federal funds and is to be delivered to
     Seller by Escrow Agent at the "Closing" (as hereinafter defined); and

       (ii) The balance of the Purchase Price, equal to Five Hundred Forty Eight
Thousand Seven Hundred Fifty One and No/100 Dollars ($548,751.00), shall be paid
by Buyer to Seller, subject to adjustments for the Property square footage and
as otherwise provided for in this Agreement, by wire transfer of immediately
available federal funds at Closing upon the delivery and acceptance of the Deed.

     (b)  Deposit.
          -------

       (i) The Deposit shall be held in an interest-bearing escrow account as
provided in Section 2(d) below, subject to the terms of this Agreement, and
shall be duly accounted for at Closing (as defined below).  All interest on the
Deposit is to be accounted for and accrue to the account of Buyer if the Closing
occurs; or paid to Buyer if the Deposit (or any portion thereof) is returned to
Buyer under the terms of this Agreement; or if Seller shall retain the Deposit
under the provisions of Section 9(b) of this Agreement, then the entire amount
of the interest shall be paid to Seller.

       (ii) The Deposit shall be refundable to Buyer only if Seller does not
acquire title to the Property and record the Plat or if Seller shall fail to
fulfill its agreement herein to convey the Property on the Closing Date and
Buyer does not obtain specific performance as provided in Section 9(a) below.

     (c) Adjustments; Prorations; Credits.  The Purchase Price shall be adjusted
         --------------------------------
to reflect the following:

       (i) Water and sewer use charges, charges for utilities, property owners'
association assessments, and real property taxes and assessments with respect to
the Property for the year in which the Closing occurs (with full discount) shall
be apportioned as of the Closing Date, and the net amount shall be added to or
deducted from the Purchase Price, as the case may be.  Buyer shall have no
liability for real property taxes or assessments with respect to the Property
for years prior to the year in which the Closing occurs, and Seller shall have
no liability for real property taxes or assessments with respect to the Property
for the year in which the Closing occurs (other than the prorations provided
herein) or years following the year in which the Closing occurs.  If the
Property is a portion of a larger tax or assessment parcel, then the amount of
real estate taxes and assessments to be prorated hereunder shall be limited to
the Proportionate Share (as calculated below) of the taxes and assessments which
are attributable to the Property.  The "Proportionate Share" shall be calculated
by multiplying the total amount of real estate taxes and assessments by a
fraction, the numerator of which shall be the total acreage (or fraction
thereof) comprising the Property, and the denominator of which shall be the
total acreage of the larger tax or assessment parcel.

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       (ii) If, on the Closing Date, the current real property tax or assessment
bill with respect to the Property is not available, the amount of real property
taxes and assessments shall be apportioned based on the current year's millage
and the current year's assessment.  If the current year's millage is not fixed
and the current year's assessment is available, taxes and assessments will be
apportioned based on such assessment and the prior year's millage.  If the
current year's assessment is not available, then real property taxes and
assessments will be apportioned on the prior year's taxes and assessments.  Any
apportionment of taxes or assessments based upon any figures other than a final
tax and assessment bill shall, at the request of either Buyer or Seller, be
subsequently reapportioned based upon receipt of the final tax and assessment
bill for the current year.

       (iii)  Each party shall pay its own attorneys' fees and costs incurred in
connection with the negotiation of this Agreement and consummation of the
transactions contemplated by this Agreement, except as otherwise expressly
provided herein.  Seller shall pay the cost of all deed or other transfer taxes
(including all documentary stamp taxes), with respect to the transactions
contemplated by this Agreement, all recording costs (including recording costs
associated with releases and other documents required to clear title or to
comply with Seller's obligations hereunder), and an ALTA owner's title insurance
policy insuring Buyer's title to the Property.  Buyer shall pay the cost of a
current survey of the Property meeting ALTA requirements or the technical
standards set forth in Florida Administrative Code Rule 61G17-6.002 ("Survey"),
if Buyer elects to obtain a Survey.  Any items of cost or expense not
specifically allocated above shall be paid by the party to the transaction that
customarily bears such cost or expense within Palm Beach County, Florida.

       (iv) If at any time following the making of any of the adjustments to the
Purchase Price, the amount thereof shall prove to be incorrect, or it should be
discovered that some adjustment which should have been made was inadvertently
omitted altogether, the party in whose favor the error was made shall pay the
sum necessary to correct such error to the other party within fifteen (15) days
following receipt of notice of such error from such other party and resolution
of any dispute with respect thereto.

     (d)  Escrow Account.
          --------------

       (i)  The Deposit shall be held by Gunster, Yoakley, Valdes-Fauldi &
Stewart, P.A., as escrow agent ("Escrow Agent"), in a separate interest-bearing
account.  Such account shall be maintained until the Deposit and the interest
thereon have been delivered to Buyer, Seller or a court of competent
jurisdiction in accordance with the provisions of this Agreement and shall
terminate on the date of such delivery.

       (ii) Escrow Agent shall account for the Deposit in accordance with the
terms of this Agreement or in such other manner as may be directed in a joint
written notice from Seller and Buyer directing some other disbursement of the
Deposit.  If Escrow Agent receives written notice from either Buyer or Seller
that the other party has defaulted in the performance of its obligations under
this Agreement or that any condition to the performance of obligations under
this Agreement has not been fulfilled within the time period stipulated, which
notice shall describe in reasonable detail such default or non-performance, then
Escrow Agent shall (A) unless the notice evidences that a copy has been given to
the party alleged to have defaulted or to have failed to fulfill its obligation,
within two (2) business days give notice to such party of Escrow Agent's receipt
of such notice from the other party and shall enclose a copy of such notice from
the other party, and (B) subject to the provisions of Section 2(d)(iii) below
which shall apply if a conflict arises, on the tenth (10th) calendar day after
the giving of the notice referred to in clause (A) above, deliver the Deposit
(or the appropriate portion thereof) and the interest thereon to the party
claiming the right to receive it.

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       (iii)  If Escrow Agent is uncertain as to its duties or actions
hereunder, it shall be entitled to take any of the following courses of action:
(A)  hold the Deposit as provided above in this Section 2(d) and decline to take
any further action until Escrow Agent receives a joint written direction from
Buyer and Seller or an order of a court of competent jurisdiction directing the
disbursement of the Deposit, in which case Escrow Agent shall then disburse the
Deposit in accordance with such direction; (B)  in the event of litigation
between Buyer and Seller, deliver the Deposit and all interest thereon to the
clerk of any court in which such litigation is pending; or (C) deliver the
Deposit and all interest thereon to a court of competent jurisdiction and
commence an action for interpleader in such court, whereupon Escrow Agent shall
have no further duty with respect to the Deposit.

       (iv) Escrow Agent shall not be liable for any action taken or omitted in
good faith and may rely, and shall be protected in acting or refraining from
acting in reliance, upon an opinion of counsel and upon any directions,
instructions, notices, certificates, instruments, requests, papers or other
documents believed by it to be genuine and to have been made, sent, signed or
presented by the proper party or parties.

       (v) Buyer acknowledges that Escrow Agent is counsel for Buyer and may
continue to act as such counsel notwithstanding its duties as Escrow Agent
hereunder or any dispute or litigation arising as to its duties as Escrow Agent.

       (vi) Escrow Agent shall have no liability with regard to any duty under
this Agreement nor be responsible for the loss of any moneys held by it except
in the event of willful and intentional misconduct on the part of Escrow Agent.
Notwithstanding any other provisions of this Agreement, Buyer and Seller jointly
indemnify and hold harmless Escrow Agent against any losses, costs, liabilities,
claims and expenses incurred by Escrow Agent arising out of or in connection
with its services under the terms of this Agreement, including attorneys' fees
and expenses and the costs and expenses of any interpleader action involving the
Deposit or of defending itself against any claim or liability.  However, Escrow
Agent will not charge any fee for its normal services hereunder as Escrow Agent.

     3.  CLOSING.
         -------

     (a)  Replatting.
          ----------

       Buyer agrees and acknowledges that Seller will prepare and submit to the
applicable governmental authorities a replat of Tract WK3 which includes the
Property within its boundaries (the "Plat"). Seller shall provide to Buyer each
draft of the Plat as submitted to the Town, shall advise Buyer from time to time
as to the progress of review and approval of the Plat, shall promptly provide to
Buyer copies of comment letters received with respect to the Plat, and shall
consult with Buyer to the extent that the Plat is required to contain any
matters that would have an impact on development of the Property. The Plat shall
be recorded prior to the Closing Date.

     (b)  Closing Date.
          ------------

       The time for the delivery of the Deed and for the performance of the
other terms and conditions of this Agreement ("Closing") shall be 9:00 A.M.
E.S.T. on the date ("Closing Date") that is five (5) days following the date on
which Seller delivers to Buyer a copy of the final Plat and evidence of
recordation thereof, but in no event later than June 30, 2000. The Closing shall
take place at the offices of Escrow Agent or at such other place as shall be
mutually agreed upon by Buyer and Seller.

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     4.  REPRESENTATIONS AND WARRANTIES.
         ------------------------------

     (a) Representations and Warranties of Buyer.  Buyer warrants and represents
         ---------------------------------------
to, and covenants and agrees with, Seller that Buyer is duly organized, validly
existing and in good standing under the laws of the State of Florida and has the
legal right, power and authority to enter into this Agreement and to perform all
of its obligations hereunder; that execution and delivery of this Agreement, and
the performance by Buyer of its obligations hereunder, have been duly authorized
by all necessary corporate action; that the officer signing this Agreement on
behalf of Buyer is duly authorized to execute the same on behalf of Buyer; and
that this Agreement and Buyer's performance hereunder will not conflict with, or
result in a breach of, any of the terms, covenants and provisions of the
articles of organization or by-laws of Buyer, as same may have been amended or,
to the best of Buyer's knowledge, any order, judgment, writ, injunction or
decree of any court or any agreement or instrument to which Buyer is a party or
by which it is bound. The foregoing warranties and representations of Buyer
shall survive Closing for a period of six (6) months.

     (b) Representations and Warranties of Seller. Seller warrants and
         -----------------------------------------
represents to, and covenants and agrees with, Buyer that Seller is duly
organized, validly existing and in good standing under the laws of the State of
Florida and has the legal right, power and authority to enter into this
Agreement and to perform all of its obligations hereunder; that the execution
and delivery of this Agreement, and the performance by Seller of its obligations
hereunder, have been duly authorized by all necessary corporate action; that the
officer signing this Agreement on behalf of Seller is duly authorized to execute
the same on behalf of Seller; and that this Agreement and Seller's performance
hereunder will not conflict with, or result in a breach of, any of the terms,
covenants and provisions of the partnership agreement of Seller, as same may
have been amended or, to the best of Seller's knowledge, any order, judgment,
writ, injunction or decree of any court or any agreement or instrument to which
Seller is a party or by which it is bound.  Seller further warrants and
represents that Seller has not entered into any leases or contracts with respect
to the Property and will not enter into any such leases or contracts that
survive Closing (other than utility or other such agreements as may be necessary
for development of any other property within Tract WK3); Seller is not aware of
any claims or lawsuits with respect to the Property, including any such claims
or lawsuits involving hazardous materials; and Seller has no knowledge of the
presence of Hazardous Materials on the Property, provided that the only
investigation undertaken by Seller in that regard is documented in that certain
report from ATC Associates, Inc. dated September 21, 1999 under ATC Project
Number 03353.0001, Task 2, a copy of which report has previously been provided
to Buyer.  The foregoing warranties and representations of Seller shall survive
Closing for a period of six (6) months.

5.   TITLE INSURANCE. Within fifteen (15) days after the last party executes and
     ---------------
delivers this Agreement, Seller shall provide to Buyer a commitment issued by
Chicago Title Insurance Company, pursuant to which such company agrees to issue
to Buyer, upon recording of the Deed, an owners' policy of title insurance in
the amount of the Purchase Price insuring Buyer's title to the Property.  In the
event such title insurance commitment contains any Schedule B-II exceptions
which render title to the Property unmarketable, Buyer may notify Seller in
writing, within fifteen (15) days after receipt of the title insurance
commitment, specifying Buyer's objection to such exception(s). At its option,
Seller may cure or cause to be cured such objection within thirty (30) days
following receipt of such notice (the "Cure Period"), except that Seller will be
obligated to remove any liens or encumbrances resulting from Seller's actions.
At the expiration of the Cure Period, all title matters affecting the Property,
other than (a) any liens or encumbrances resulting from Seller's actions, and
(b) any other title matters that Seller has expressly agreed in writing to cure,
shall be deemed to be accepted by Buyer.  In the event that any title matter
arises after the Cure Period that would render title unmarketable or would have
a material and substantial adverse effect on Buyer's intended development of the
Property, then, within ten (10) days after Buyer has written notice of same,
Buyer may notify Seller in writing, specifying Buyer's objection to such title
matter.  If Seller does

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not cure such title matter within thirty (30) days after receipt of Buyer's
written notice (as extended for a reasonable period, not to exceed 90 days, if
necessary for Seller to effect such cure), then Buyer shall have the option, to
be exercised by giving written notice to Seller within ten (10) days after
Seller gives Buyer written notice that Seller cannot or will not effect such
cure, of either accepting title to the Property as it then exists without any
reduction of the Purchase Price or terminating this Agreement. In such event the
Deposit, together with all interest thereon, shall be refunded to Buyer, all
obligations of the parties hereto shall cease, and this Agreement shall be void
and without recourse to the parties hereto except with respect to provisions
hereof which specifically survive termination. If Buyer does not give written
notice of termination within said ten day period, Buyer shall be deemed to have
elected to accept title to the Property as it then exists without any reduction
of the Purchase Price.

6.   SURVEY. Buyer shall have the option to obtain a Survey of the Property in
     ------
such form and content as Buyer may elect in its sole discretion.  Not later than
twenty five (25) days after Buyer receives the title commitment, Buyer shall
notify Seller in writing specifying its objection to any Survey matters which
render title to the Property unmarketable.  In the event Buyer fails to object
to any such matters during this period, such matters shall be deemed to be
accepted by Buyer.  At its option, Seller may cure or cause to be cured such
objection with thirty (30) days following receipt of such notice. At the
expiration of the Cure Period, all survey matters affecting the Property, other
than those that Seller has expressly agreed in writing to cure, shall be deemed
to be accepted by Buyer.  In the event that any survey matter arises after the
Cure Period that would render title unmarketable or would have a material and
substantial adverse effect on Buyer's intended development of the Property,
then, within ten (10) days after Buyer has written notice of same, Buyer may
notify Seller in writing, specifying Buyer's objection to such title matter.  If
Seller does not cure such title matter within thirty (30) days after receipt of
Buyer's written notice (as extended for a reasonable period, not to exceed 90
days, if necessary for Seller to effect such cure), then Buyer shall have the
option, to be exercised by giving written notice to Seller within ten (10) days
after Seller gives Buyer written notice that Seller cannot or will not effect
such cure, of either accepting title to the Property as it then exists without
any reduction of the Purchase Price or terminating this Agreement.  In such
event the Deposit, together with all interest thereon, shall be refunded to
Buyer, all obligations of the parties hereto shall cease, and this Agreement
shall be void and without recourse to the parties hereto except with respect to
provisions hereof which specifically survive termination. If Buyer does not give
written notice of termination within said ten day period, Buyer shall be deemed
to have elected to accept title to the Property as it then exists without any
reduction of the Purchase Price.

     7.  CLOSING OBLIGATIONS.
         -------------------

     (a) Seller's Closing Obligations.  On the Closing Date, Seller shall:
         ----------------------------

       (i) Deliver to Buyer full possession of the Property.

       (ii) Deliver to Buyer, the following:

          (A) A special warranty deed ("Deed") conveying good and marketable
title to the Property in accordance with the terms of this Agreement, which
shall be subject to all rights and reservations accruing to or for the benefit
of Seller under Section 10 of this Agreement.

          (B) An affidavit to the title insurer in a form sufficient to delete
the so-called "gap", "parties in possession" and "mechanics lien" exceptions in
the title insurance commitment referred to in Section 5 above.

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          (C) An affidavit certifying that Seller is not a "foreign person"
within the meaning of the Section 1445 of the Internal Revenue Code.

          (D)  Florida DR-219 form.

     (b) Buyer's Closing Obligations.  At the Closing, Buyer shall:
         ---------------------------

       (i) Deliver to Seller, by wire transfer of immediately available federal
funds, the balance of the Purchase Price, as adjusted pursuant to this
Agreement.

       (ii) Deliver to Seller a signed acceptance copy of the Deed.

       (iii)  Deliver any other documents or monies expressly required by this
Agreement to be delivered by Buyer, including, without limitation, the consent
and waiver required by Northern Palm Beach County Improvement District
("NPBCID") in the form attached hereto as Exhibit 7(b), and the reproration
agreement provided for in subsection 2(c)(ii) above.

     8.  CONDEMNATION.  In the event that all of the Property, or a portion
         ------------
thereof that prevents development of the Property in conformance with Buyer's
permitted use as described in Section 10(b)(vi), shall be acquired or condemned
for any public or quasi-public use or purpose, or if any such acquisition or
condemnation proceedings shall be threatened or begun prior to the Closing of
this transaction, Buyer shall have the option to either (a) terminate this
Agreement, in which event Escrow Agent shall return to Buyer the Deposit,
together with accrued interest thereon, and the obligations of all parties
hereunder shall cease except with respect to provisions hereof which
specifically survive termination, or (b) proceed, subject to all other terms,
covenants, conditions, representations and warranties of this Agreement, to the
Closing of the transaction contemplated hereby and receive title to the Property
without any reduction of the Purchase Price; provided, however, that Seller
shall direct all such proceedings with respect to the Property and pay to the
Buyer any sums received by it in connection with such proceedings and
attributable to that portion of the Property acquired or condemned.

     9.  FAILURE OR INABILITY TO PERFORM; DEFAULTS; REMEDIES.
         ---------------------------------------------------

     (a)  Seller's Default.   If Seller shall fail to fulfill its agreement
          ----------------
herein to convey the Property on the Closing Date or if Seller shall fail to
fulfill its obligations with respect to the "Expansion Option", as defined in
Section 10(a) below, Buyer shall have the following as its sole remedies, each
of which shall be mutually exclusive:

       (i) Buyer may file an action for specific performance, which must be
filed, if at all, within six (6) months after Seller's failure to close as
provided in this Agreement; or

       (ii) Buyer may seek damages from Seller solely for the lost opportunity
to have the "Expansion Project" constructed for and leased to Buyer pursuant to
the "Expansion Project Lease", all as defined in Section 10(a) below; provided,
however, that Buyer and Seller agree that the sole measure of damages
recoverable by Buyer (in addition to attorneys' fees and costs as provided in
Section 12(f) below) shall be the excess, if any, of (x) the amounts payable by
Buyer under a lease for office space in substitution of the Expansion Project,
less (y) the amounts payable by Buyer under the Expansion Project Lease on the
assumption that Buyer exercised the Expansion Option after the date that is
twelve (12) months following the date of commencement of construction of the
Initial Project and before the "Option Deadline Date", as defined in Section
10(a) below.

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If Seller shall fail to fulfill any of its agreements herein other than the
agreement to convey the Property on the Closing Date or its obligations with
respect to the Expansion Option, whether before or after the Closing Date, and
such failure continues for more than fifteen (15) days after written notice of
default is given by Buyer (subject to extension if Seller is diligently pursuing
the cure but the default cannot be cured in such period, but in no event longer
than thirty days), Buyer shall have all remedies available at law or in equity
with respect to any such default (other than the failure of Seller to fulfill
its agreement herein to convey the Property on the Closing Date or its
obligations with respect to the Expansion Option).

     (b) Buyer's Default.  If Buyer shall fail to fulfill its agreement herein
         ---------------
to purchase the Property on the Closing Date, Seller's sole and exclusive remedy
shall be to retain or recover from Buyer or the Escrow Agent the Deposit and any
interest thereon as full and complete liquidated damages, both at law and in
equity, whereupon this Agreement shall terminate without further recourse to
either party except with respect to provisions hereof which specifically survive
termination. If Buyer shall fail to fulfill any of its other agreements herein,
whether before or after the Closing Date, within fifteen (15) days after written
notice of default is given by Seller (subject to extension if Buyer is
diligently pursuing the cure but the default cannot cure in such period, but in
no event longer than thirty days), Seller shall have all remedies available at
law or in equity.

     10.  ADDITIONAL ACKNOWLEDGMENTS, COVENANTS AND AGREEMENTS.
          -----------------------------------------------------

     (a) Development by Seller.  Buyer acknowledges that, except as provided
         ----------------------
below in Section 10(a), Seller shall have no obligation to make any improvements
of any type to the Property, including, without limitation, placing any fill on
the Property, compacting the soil or any other matter whatsoever.
Notwithstanding the foregoing, Seller agrees that, during the construction of
the Initial Project, it will cause the Property to be cleared, seeded (or its
equivalent) and irrigated, and Seller and its agents shall have an easement to
enter upon and under the Property from time to time for such purposes.  Seller
shall have no obligation to maintain, repair, replace, or insure any portion of
the Property or any installations therein, and Buyer agrees to assume full
responsibility for all such matters.

       (i)  Expansion Option of Buyer.  Buyer shall have the option (the
            -------------------------
"Expansion Option"), to be exercised (if at all) on or before the date that is
twenty four (24) months following the date of commencement of construction of
the Initial Project (the "Option Deadline Date"), to have Seller or Seller's
affiliated assignee, as determined by Seller (the "Repurchaser") repurchase the
Property from Buyer and simultaneously enter into a lease with Buyer (the
"Expansion Project Lease") for a one-story office building of approximately
20,000 square feet (the "Expansion Project") to be constructed on the Property.
For purposes of this Section 10(a), the commencement of construction of the
Initial Project shall be defined as the pouring of the footers, and Buyer and
Seller shall execute a written acknowledgment of such date within ten (10) days
following notice from Seller to Buyer that such footers have been poured.  The
Expansion Project Lease shall be on substantially the same terms and conditions
(including optional extension rights of Buyer) as the Initial Project Lease
except as follows:

          (x)  Exercise During First 12 Months.  If the Expansion Option is
               -------------------------------
exercised within twelve (12) months following the date of commencement of
construction of the Initial Project, then the "Base Rent" under the Expansion
Project Lease will be the same for each lease year as the "Base Rent" under the
Initial Project Lease, including "Base Rent" during each extension option term.

          (y)  Exercise Between 12 and 24 Months.  If the Expansion Option is
               ---------------------------------
exercised after the date that is twelve (12) months following the date of
commencement of construction of the Initial Project

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and before the Option Deadline Date, then the "Base Rent" under the Expansion
Project Lease will be as follows:

          Lease Year           Base Rent   Base Rent per Rentable Square Foot
         -------------        -----------  ----------------------------------

          One-Two             $340,000.00               $17.00
          Three-Five          $350,000.00               $17.50
          Six-Eight           $370,000.00               $18.50
          Nine-Ten            $390,000.00               $19.50
          Eleven-Twelve       $420,000.00               $21.00
          Thirteen-Fifteen    $435,000.00               $21.75
          Sixteen-Eighteen    $450,000.00               $22.50
          Nineteen-Twenty     $470,000.00               $23.50

Upon commencement of the initial term of the Expansion Project Lease, the
initial lease term under the Initial Project Lease shall be extended for the
period (the "Initial Term Extension Period") ending on the date of expiration of
the initial lease term under the Expansion Project Lease, and Buyer agrees to
execute all documentation reasonably requested by the "Landlord" under the
Initial Project Lease to confirm such extension.  The "Base Rent" applicable
under the Initial Project Lease during the Initial Term Extension Period shall
be the same Base Rent that would have been due under the Initial Project Lease
if Buyer had exercised its first extension option under the Initial Project
Lease, and each Base Rent adjustment thereafter shall occur on the corresponding
anniversary of the "Commencement Date" of the Initial Project Lease without
regard to the fact that such adjustment dates will not correspond to the
beginning of a lease year. With respect to any portion of the second extension
option period that extends beyond the 20 years for which Base Rent rates are set
forth in the Initial Project Lease (the "Post 20-Year Period"), the Base Rent
shall be increased by One Dollar ($1.00) per rentable square foot at the
twentieth (20th) anniversary of the Commencement Date of the Initial Project
Lease and shall be increased again by the same amount at each second anniversary
of the Commencement Date of the Initial Project Lease thereafter (e.g., 22nd,
24th, etc.)

       (ii)  Limitation. The rental rates set forth in Section 10(a)(i) above
             ----------
shall apply only if the Expansion Option is exercised timely; otherwise, the
"Base Rent" with respect to the Expansion Option shall be subject to mutual
agreement of Buyer and the Repurchaser if Buyer elects to have the Repurchaser
develop the Property.

       (iii)  Condition of Option.  As a condition of Buyer's exercise of the
              -------------------
Expansion Option, Buyer shall submit to Seller then current financial and other
related information regarding Buyer and/or its affiliates as may be required by
Seller to confirm that Buyer's then current financial condition is similar or
equal to Buyer's financial condition at the date of this Agreement.  Further,
Seller shall not be obligated to cause the Repurchaser to repurchase the
Property from Buyer or otherwise perform pursuant to the Option if Buyer's then
current financial condition is not sufficient for the Repurchaser to obtain
mortgage financing for the Expansion Project on terms reasonably acceptable to
the Repurchaser.  Without limitation of any other provisions of this Agreement,
Buyer acknowledges that Seller's exercise of its rights under this Section
10(a)(iii) shall not be a default by Buyer under this Agreement and shall not
give rise to any action for specific performance or damages pursuant to Section
9(a) above.

       (iiv)  Repurchase Terms.  The repurchase price for the Property pursuant
              ----------------
to exercise of the Option shall be equal to Six and 50/100 Dollars ($6.50) per
square foot of the Property (the "Repurchase Price").  At the time of closing of
the repurchase, which shall be simultaneous with the closing of the construction
loan for the Expansion Project, the Repurchaser shall pay to Buyer an amount
equal to the

                                     Page 9
<PAGE>

Repurchase Price, less (a) the unpaid balance of any liens or assessments
against the Property (subject to applicable prorations), (b) any costs and
expenses incurred by the Repurchaser in clearing the title of all encumbrances
that were not applicable to the Property at the date of the initial conveyance;
and (c) the documentary stamp tax on the deed of conveyance to the Repurchaser.
At closing, Buyer shall convey to the Repurchaser good and marketable title to
the Property and any improvements thereon by special warranty deed, subject only
to maters of record in existence at the date of Seller's conveyance of the
Property to Buyer and matters appearing subsequent thereto for which Buyer is
not responsible in any manner. Once the Expansion Option has been exercised,
Seller or the Repurchaser may enforce the provisions of this Section 10(a) by an
action for specific performance.

       (v)  Exclusive Rights.  In consideration of the covenants of Seller set
            ----------------
forth in this Section 10(a), Buyer acknowledges and agrees that the right of
Seller (or the Repurchaser) to repurchase the Property and construct
improvements thereon shall be exclusive prior to the Option Deadline Date, and
Buyer shall be prohibited from conveying the Property (or any interest therein)
to any other transferee and from developing or constructing any improvements on
the Property in violation of this subsection.

       (vi)  Fill.  Seller will cause Abacoa to make available sufficient fill
             ----
for the Property to comply with the stormwater storage, detention, retention,
and minimum finished floor elevations set forth in the "SFWMD Conceptual Plan"
as defined in Section 10(b)(i)(a) below, provided that transportation of such
fill from Abacoa's stockpile to the Property shall be at the expense of Buyer
(or shall be included within the development budget for the Expansion Project)
if Buyer timely exercises the Expansion Option and executes and delivers the
Expansion Project Lease.

     (b) Buyer's Additional Acknowledgments, Covenants and Agreements.  In
         -------------------------------------------------------------
addition to its other acknowledgments, covenants and agreements hereunder, Buyer
acknowledges, covenants and agrees as follows:

       (i)  Matters Regarding the Property and the Abacoa Project.
            -----------------------------------------------------

          (a) Entitlement Documents.  The Property, and the planning,
              ---------------------
development, occupation and use thereof, is subject to the obligations and
requirements of, is governed by the uses and entitlements permitted by, and
shall be conducted in accordance with the requirements and assumptions of, that
certain Development Order dated June 6, 1995 known as Resolution No. 9-95 of the
Town as amended to date (and as further amended from time to time, "Development
Order"), Town Ordinance No. 1-95 (and as further amended from time to time, "MXD
Ordinance"), the Master Plan for the Abacoa Project approved by the Town (and as
further amended from time to time, "Abacoa Master Plan"), a Conceptual Water
Management Plan of the South Florida Water Management District ("SFWMD") (and as
further amended from time to time, "SFWMD Conceptual Plan"), a Water Management
Plan of NPBCID (and as further amended from time to time, "NPBCID Water
Management Plan"), and certain other permits, approvals, licenses, agreements,
arrangements and the like from or with various other governmental authorities
and/or utility companies (including, without limitation, Loxahatchee River
Environmental Control District. ("Encon")) relating to the development of the
Abacoa Project (all of the foregoing, as further amended from time to time,
being collectively referred to as the "Entitlement Documents").  Buyer
acknowledges and agrees that it will provide any non-confidential information in
Buyer's possession or readily available to Buyer that is necessary to complete
and file any reports required by the Entitlement Documents, that the Entitlement
Documents do not guarantee that any particular portion of the Abacoa Project or
any particular use may be developed at any time, and that the Entitlement
Documents include conditions and obligations to which Buyer, as owner of the
Property, will be subject.  Seller has not assumed, and does not hereby assume,
responsibility for any obligations under the Entitlement Documents, and Buyer
acknowledges and agrees

                                    Page 10
<PAGE>

that it shall have no claim against Seller for the failure of any person or
entity to perform any duty or obligation arising out of or related to the
Entitlement Documents.

          (b)  Modification of Entitlement Documents.  The John D. and Catherine
               -------------------------------------
T. MacArthur Foundation, a Illinois not-for-profit corporation (the
"Foundation"), Abacoa and/or Seller, their successors and assigns, may, from
time to time, request that the appropriate governmental authorities modify,
amend, limit or terminate the Entitlement Documents.  Buyer will not object to
or contest any such modification, amendment, limitation or termination, provided
it does not modify, amend, limit or terminate any of the Entitlement Documents
in any manner that would have a material adverse effect on development of the
Property as permitted under this Agreement.  Buyer acknowledges and agrees that
it shall have no claim against Seller for any modification, amendment,
limitation or termination of any of the Entitlement Documents by any person or
entity.

          (c) Use of Names.  Buyer shall not utilize the names "Abacoa", "Abacoa
              ------------
Workplace", or any variation of any of the foregoing in any manner without the
prior written consent of Seller and, where applicable, Abacoa.

       (ii)  Buyer's Approvals. With respect to Buyer's development of the
             -----------------
Property, Buyer shall, at Buyer's sole cost and expense, apply for and obtain
all licenses, permits, approvals and the like from the Town, SFWMD, NPBCID, the
Florida Department of Environmental Protection and any other federal, state or
local governmental agency or authority having jurisdiction over the Property
necessary or desirable to permit Buyer to construct and operate its permitted
use (collectively, the "Buyer's Approvals").  Buyer shall be responsible for all
infrastructure and improvement obligations required by any governmental agency
or authority as a condition of obtaining any Buyer's Approvals, and Seller
agrees to cooperate with Buyer, at Buyer's expense, in connection with Buyer's
efforts to obtain Buyer's Approvals.  Buyer acknowledges and agrees that Buyer's
obligations to purchase the Property in accordance with the terms of this
Agreement are not, expressly or impliedly, contingent or conditioned upon Buyer
obtaining all or any of the Buyer's Approvals. The provisions of this Section
10(b)(ii) shall not apply if Buyer timely exercises the Expansion Option and
executes and delivers the Expansion Project Lease; in such event, the
Repurchaser shall be responsible for obtaining all of the Buyer's Approvals.

       (iii)  Development Matters.
              -------------------

          (a)  Utilities, Utility Capacity and Utility Charges.  Prior to
               -----------------------------------------------
Closing, Seller may, but is not obligated to, enter into: (i) a water agreement
required by the Town for the portion of the Workplace District that includes the
Property, (ii) a standard developer's agreement for sanitary sewer service
required by Encon for the portion of the Workplace District that includes the
Property, and (iii) a reuse irrigation quality ("IQ") agreement required by
Encon for the portion of the Workplace District that includes the Property.
Buyer will, at the Closing, reimburse Seller for any and all sums paid by Seller
pursuant to such agreements with the Town and Encon that are allocable to the
Property, and assume all remaining obligations thereunder that are allocable to
the Property.  Without limitation of the foregoing, Buyer shall be solely
responsible for the timely payment of all potable water, wastewater/sewer and IQ
water connection charges, carrying charges (including any accrued guaranteed
revenue fees of the Town for the Property), hook-up and tap-in fees and for any
initial start-up, tie-in, deposit, tap-in, meter installation or any other cost
normally charged by a utility company providing potable water, wastewater/sewer,
IQ water, telephone, electric, alarm monitoring, cable television or other
service for the Property; provided, however, that if Buyer timely exercises the
Expansion Option and executes and delivers the Expansion Project Lease, then the
Repurchaser shall be responsible for all such costs associated with development
of the Property (as opposed to any costs associated with carrying the Property
until development thereof).  In connection with any site plan

                                    Page 11
<PAGE>

application filed by Buyer with respect to the Property, Seller will permit
Buyer to avail itself of any right of Seller to borrow reservation capacity from
Abacoa pending approval of the site plan application, but solely on condition
that Buyer pay all fees charged with respect thereto and otherwise comply with
all conditions associated therewith.

          (b)  Impact Fees.  Buyer shall be responsible for paying any and all
               -----------
impact fees of the Town, Palm Beach County ("County") or any other governmental
authority that would normally be required or collected in connection with the
application or issuance of any building permit for any portion of the Property,
regardless of any impact fee credit that might be available as a result of
actions of any other person or entity besides Buyer.  When impact fee credit is
available to any person or entity other than Buyer, Buyer will pay the amount of
impact fee that would normally be required in order to reimburse Abacoa or
Seller for actions taken by Abacoa or Seller or any person or entity besides
Buyer in accumulating the impact fee credit. Buyer will pay impact fees in the
following manner:

          (1) For each type of impact fee, when no impact fee credit is
available or when there is no pending credit determination for that type of
impact fee, Buyer shall pay the required impact fee directly to the applicable
governmental authority as required by the impact fee regulations.

          (2) For each type of impact fee that has a pending credit
determination and escrow agreement with the applicable governmental authority,
except roads, Buyer shall pay the required impact fee directly to the escrow
agent established under such escrow agreement ("Impact Fee Escrow Agent").  Once
the amount of credit is determined, any impact fees paid into escrow that would
normally be returned to the party paying them into escrow will be turned over to
Abacoa or Abacoa's designee.  Future impact fees of this type will be paid
directly to Abacoa when each building permit is issued until the credit is fully
utilized.  Once the credit is fully utilized, future impact fees will be paid
pursuant to subparagraph (1) above, unless additional impact fee credits are
determined or a credit determination is pending.  In that instance, the
provisions of this subparagraph will apply.

          (3) For roads, impact fees will initially be paid directly to Gary,
Dytrych & Ryan, P.A., as escrow agent.  Buyer acknowledges that Abacoa and
NPBCID are currently working on an agreement with the County dealing with the
collection and disbursement of road impact fees based on the road impact fee
credit that will be available to Abacoa as a result of the road improvements
constructed by NPBCID ("Collection Agreement").  Once the Collection Agreement
is executed, future road impact fees will be paid by Buyer and previously paid
impact fees will be disbursed by Gary, Dytrych & Ryan, P.A., as escrow agent,
pursuant to the terms of the Collection Agreement.  If Abacoa or Seller notifies
Buyer that the Collection Agreement will not be executed, then the provisions of
subparagraph (2) above will also apply to road impact fees.

          (4) For any type of impact fee that is being paid pursuant to
subparagraph (1) above, Seller will notify Buyer if impact fee credits will
become available for that type of impact fee in the future.  Buyer will follow
Seller's instructions on how to pay that type of impact fee.

          (c)  Easements.  Prior to the Closing Date, Abacoa and/or Seller,
               ---------
their successors and assigns, may grant and record easements encumbering the
Property in the ordinary course of business, provided that each such easement
(i) is necessary for development of the Abacoa Project or the portion of the
Workplace District that includes the Property, (ii) does not directly affect the
use of the Property or the intensity of development or timing of development of
the Property, and (iii) does not directly affect the cost of development with
respect to the Property (unless Seller or Abacoa agrees to bear such cost).
After the Closing Date and in connection with the approval of any site plan
submitted by Buyer with respect to the

                                    Page 12
<PAGE>

Property, Buyer shall, without compensation of any kind, grant Abacoa and/or
Seller, or any parties designated by Abacoa and/or Seller, easements for access,
utilities, irrigation, landscaping, cable television, roads, bicycle paths,
medians, turn lanes, drainage and other similar services or purposes, provided
such easements are non-exclusive, the location of the easements and the use
thereof do not prevent or materially interfere with Buyer's proposed development
of the Property, and Buyer has the right to relocate the easements at Buyer's
expense.

Notwithstanding the foregoing, if Buyer timely exercises the Expansion Option
and executes and delivers the Expansion Project Lease, then the Repurchaser
shall be responsible for all impact fees associated with development of the
Property.

           (d)  Intentionally Omitted.
                ---------------------

           (e)  Clearing.  Buyer will not burn or allow burning as part of the
                --------
land development process for the Property.

          (f)   Debris.  Buyer will not permit trash and debris from the
                ------
Property to be carried by the wind or otherwise scattered, and shall keep all
roadways and other portions of the Property clear of silt, construction
materials and trash from its construction activities.  Buyer shall ensure that
all trash and debris is contained in appropriate trash receptacles or removed
regularly from its construction sites and will abide by any Town debris
management plans.

          (g)  Telecommunication Plan.  Buyer acknowledges that Abacoa may
               ----------------------
develop a master telecommunication plan, including the planning, design,
construction and operation of public and/or private telecommunications
infrastructure and/or services within the boundaries of the Abacoa Project,
including, but not limited to nonresidential buildings, contracts for telephone
services, data or information services, video and/or cable television services
and wireless services and broadcast and/or communications facilities. In the
event Abacoa does develop such a master telecommunications plan, Buyer agrees to
abide by such plan, including but not limited to the installation by Buyer of
the proper wiring within building improvements to accommodate the master
telecommunication plan.

       (iv) Property Owners Associations.  The Property is subject to the
            ----------------------------
Declaration of Covenants, Conditions and Restrictions for Abacoa recorded in
Official Records Book 9739, Page 1629, Public Records of Palm Beach County,
Florida ("Master Declaration"), the Articles of Incorporation and By-Laws of
Abacoa Property Owner's Assembly, Inc., a Florida corporation not-for-profit
(the "Master POA"), which has been established as a master community or property
owners association for all of the Abacoa Project under the Master Declaration.
The Property also will be subject to a Workplace District master and/or sub
declaration of covenants, conditions and restrictions to be recorded in the
Public Records of Palm Beach County, Florida (collectively, the "Project
Declaration") establishing a master and/or sub property owners' association(s)
(collectively, the "Project POA"), and the articles of incorporation and by-laws
of the Project POA, which will be established as a property owners
subassociation under the Master Declaration. Buyer acknowledges that Seller will
be preparing the Project Declaration and that the Project Declaration may
contain provisions concerning, among other matters, reconveyance of the Property
to Seller, at Seller's option, in the event that construction of vertical
improvements to the Property does not commence within a specified time period,
cross access and parking easements, common area maintenance, assessments for
common area maintenance and other expenses (such as real property taxes and
assessments), lien rights with respect to assessments, and site plan and
architectural review and approval. Subject to the foregoing, Buyer shall have
the right to approve the Project Declaration, provided that such approval shall
not be unreasonably withheld, delayed or conditioned.  If Buyer objects to any
provision(s) of the Project Declaration and Seller believes in good

                                    Page 13
<PAGE>

faith that such provision(s) are commercially reasonable and consistent (as
applicable) with other declarations in the Abacoa Project, then Seller shall
have the right to include such provision(s) in the Project Declaration
notwithstanding Buyer's objection provided that such provision(s) do not
directly affect the use of the Property or the intensity of development or
timing of development of the Property. Buyer agrees to accept title to the
Property subject to the Master Declaration and the Project Declaration and to
abide by and comply with all of the terms and conditions thereof. Buyer
acknowledges and agrees that construction of all improvements on the Property
will be subject to the requirements of the Master Declaration and the Project
Declaration, design guidelines promulgated under the Master Declaration and
Project Declaration, and the approval of architects and/or architectural review
committees under the Master Declaration and the Project Declaration. Buyer
acknowledges that a maintenance agreement for the maintenance of the preserve
areas, streets, drainage and landscaping or any other items deemed appropriate
by the Master POA or the Project POA may be entered into by the Master POA or
the Project POA with NPBCID or other governmental agencies, and that a portion
or all of the expenses referred to in such agreements may be assessed to the
Property as a common expense.

       (v) Signage.  Buyer acknowledges that the Property is also subject to
           -------
sign codes and approval rights of the Town, the Foundation, Abacoa, and the
Master POA.

       (vi) Limitations on Use.  Buyer, and its successors and assigns, may
            ------------------
develop and use the Property for a commercial office building and for no other
purpose whatsoever.

       (vii) Seller's Approval Rights.
             ------------------------

          (a) In each instance in which Buyer intends to cause improvements to
be developed on the Property, Buyer shall, at Buyer's sole cost and expense,
submit to Seller, for Seller's review and approval (the "Seller Approval"), the
proposed site plan application and all supporting materials (the "Application
Package") not less than ten (10) days prior to submission of same to the Town.
Seller shall have a period of seven (7) business days following its receipt of
the Application Package, or any modification thereof, within which to provide
Buyer with written approval thereof or objections thereto stating, with
reasonable specificity, Seller's objections and what changes must be made to
obtain the Seller Approval.  In the event Seller shall fail to provide Buyer
with a written approval of or objection to the Application Package, or any
modification thereto, within seven (7) business days following its receipt
thereof, or any Modification thereof,  Seller shall be deemed to have approved
the Plans or the applicable Modification thereof.

          (b) No improvements of any kind, including, without limitation, any
building, fence, wall, sign, satellite dish, tower or other telecommunication
facility, site paving, grading, building, building addition, alteration, mail
box, air conditioning equipment, pump, fill, excavation, decorative feature,
landscaping, or any other improvements (collectively, "Improvements") shall be
commenced, erected, placed or maintained upon the Property by Buyer, its
successors or assigns, nor shall any addition, change or alteration be made by
Buyer, its successors or assigns, with respect to any Improvements, unless and
until the plans, specifications and  locations of same shall have been submitted
to and approved in writing by Seller, its successors or assigns.  Buyer shall
submit to Seller two (2) complete sets of all plans and specifications for any
Improvements (including, without limitation, building and landscaping plans and
specifications), the construction or placement of which is proposed on or under
the Property, together with a copy of any governmental or other required
permits.  Seller, its successors or assigns, may also require the submission of
samples of building materials and colors proposed for use on or under the
Property, and may require such additional information as is reasonably necessary
to completely evaluate the proposed Improvements.  Within ten (10) days
following receipt of all required submissions (whether an initial submission or
re-submission following disapproval), Seller shall give Buyer written notice of
Seller's

                                    Page 14
<PAGE>

approval or disapproval and, if applicable, stated reasons for disapproval;
absent such notice, Buyer's plans and specifications shall be deemed approved.
Seller's review of the plans, specifications and other materials with respect to
the proposed Improvements is intended to ensure the aesthetic harmony,
compatibility, and quality of Improvements within the Abacoa Project and the
Workplace District in order to protect and preserve the value of all such
Improvements, and Seller shall not unreasonably withhold or delay any such
approval. Seller's rights with respect to approval of the plans, specifications
and locations of Improvements shall not apply to any construction, addition,
change or alteration to any Improvement not visible from outside of any
structure and not creating any aesthetic impact upon the Abacoa Project or the
Workplace District.

          (c) If Buyer timely exercises the Expansion Option and executes and
delivers the Expansion Project Lease, then the Repurchaser shall be responsible
for obtaining all approvals required under this Section 10(b)(vii).

       (viii)  As Is.  Buyer acknowledges and agrees that Seller has not made,
               -----
does not make and specifically negates and disclaims any representations,
warranties (other than the warranty of title as set forth in the deed),
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 the Property, including,
without limitation, the value, nature, quality or condition of the Property, the
water, soil and geology of the Property, including the existence or absence of
any hazardous materials, the suitability of the Property for any and all
activities and uses which Buyer may conduct thereon, the compliance of or by the
Property or its operation with any laws, rules, ordinances or regulations of any
applicable governmental authority or body, the habitability, merchantability,
marketability, profitability or fitness for a particular purpose of the
Property, or any other matter with respect to the Property, and, to the maximum
extent permitted by law, hereby waives, releases and discharges Seller, its
partners, employees, agent and attorneys from any and all claims relating to any
of the foregoing matters.  Buyer further acknowledges and agrees that to the
maximum extent permitted by law, the sale of the Property as provided for herein
is made on an "AS IS", "WHERE IS" condition and basis "WITH ALL FAULTS".  It is
understood and agreed that the Purchase Price has been adjusted by prior
negotiation to reflect that the Property is being sold by Seller and purchased
by Buyer subject to the foregoing.

     11.  INSPECTIONS.
          ------------

     (a)  Indemnity. During the term of the Agreement, Buyer shall have the
          ---------
right to enter upon the Property at reasonable times for the purposes of
inspection and making tests and studies thereon; provided, however, that until
Seller acquires title to the Property, Seller's sole obligation hereunder shall
be to endeavor in good faith to obtain access to the Property for Buyer from
Abacoa and the Foundation, and all inspections, test and studies of Buyer shall
be subject to the approval of Abacoa and the Foundation.  Buyer's activities
shall be conducted in a commercially reasonable manner and in compliance with
all applicable laws, ordinances, rules and regulations of any governmental
authority or agency.  Buyer shall (a) cause all borings to be plugged or capped
in a safe manner, (b) cause any property damaged or destroyed to be repaired or
replaced to its preexisting condition, (c) cause all debris resulting from its
activities to be removed, (d) not cut or uproot any vegetation without the prior
written consent of Seller, (e) not disturb any wetland or land subject to any
ordinance in respect of environmentally sensitive land, (f) not destroy, injure
or move any species of endangered or threatened animal or habitat, (g) exercise
its rights hereunder in the least obtrusive manner possible, and (h) not take
any actions or do anything which would constitute a breach or violation of any
of the Entitlement Documents.  Buyer agrees to indemnify, defend and hold
harmless Abacoa, the Foundation, Seller and deGuardiola Development Ventures,
Inc. ("GDVI"), and all of  the partners, officers, directors, employees, agents
and independent contractors of Seller or GDVI at any time

                                    Page 15
<PAGE>

and from time to time (collectively, "Seller"s Group"), from and against all
liabilities, obligations, claims, damages, judgments, awards, penalties, costs
and expenses, including, without limitation, attorneys' fees and costs at both
trial and appellate levels and fines or impositions of any governmental or
quasi-governmental authority or agency, which Abacoa, the Foundation, Seller,
GDVI or any of Seller's Group, may incur, suffer or sustain by reason of any
breach or violation by Buyer, or any of its directors, officers, employees,
agents or independent contractors at any time and from time to time
(collectively, "Buyer's Group"), of the provisions of this Section, any injury
to or death of persons or loss of or damage to property in connection with, or
as a result of, any activities hereunder and any labor or services performed, or
any materials furnished, by or for the account or benefit of, Buyer in respect
of the Property. In any action, suit or proceeding brought against Abacoa, the
Foundation, Seller, GDVI or any of Seller's Group, by reason or on account of
any of the foregoing, Buyer shall, at Buyer's expense, defend such action, suit
or proceeding with legal counsel approved by Seller in its sole discretion.

     (b)  Soil Test. In the event Buyer's soil test of the Property reveals any
          ---------
unanticipated soil conditions that would (i) prevent construction of the
Expansion Project or a comparable building on the Property or (ii) increase the
cost thereof by more than Two Hundred Thousand Dollars ($200,000), then, except
as hereinafter provided, Buyer shall have the option of terminating this
Agreement, in which event the Deposit, together with all interest thereon, shall
be refunded to Buyer, whereupon all obligations of the parties hereto shall
cease and this Agreement shall be void and without recourse to the parties
hereto except with respect to provisions hereof which specifically survive
termination; provided, however, that Buyer must exercise such option, if at all,
by delivering written notice of such termination to Seller, together with a
complete copy of such soil report and all exhibits thereto, within the period
ending at 5:00 P.M., local time, on the date that is twenty (20) days following
the date of this Agreement, time being of the essence. Notwithstanding the
foregoing, Buyer's termination shall be ineffective, and this Agreement shall
continue in full force and effect, if Seller gives written notice to Buyer,
within twenty (20) days after receipt of Buyer's termination notice, evidencing
Seller's agreement to reimburse Buyer (promptly after payment by Buyer) for all
costs in excess of $200,000 incurred by Buyer with respect to such unanticipated
soil conditions.

     12.  MISCELLANEOUS.
          -------------

     (a) Tax Identification Number.  Seller warrants and represents that
         -------------------------
Seller's federal tax identification number is 65-0874148, and Buyer warrants and
represents that Buyer's federal tax identification number is ______________.
Seller and Buyer each acknowledge that the foregoing information will be relied
upon in reporting the transactions contemplated hereby to appropriate
governmental authorities.

     (b) Agreement Not an Offer.  The submission of any draft of this Agreement
         ----------------------
or any portion thereof does not constitute an offer to buy the Property, it
being acknowledged and agreed that neither Buyer nor Seller shall be legally
obligated with respect to the purchase or sale of the Property unless and until
this Agreement has been executed by both Buyer and Seller and a fully executed
copy has been delivered to each of Buyer and Seller, and Seller has acquired
title to the Property.

     (c) Exhibits.  The Exhibits attached hereto are incorporated herein by this
         --------
reference and made a part hereof.

     (d) Notices.  All notices or communications required or permitted hereunder
         -------
shall be in writing and delivered by hand or mailed by certified mail, return
receipt requested, postage and registration or certification charges prepaid, or
by nationally recognized overnight courier service, or by telefax, to the party
entitled thereto as follows:

                                    Page 16
<PAGE>

               If to Seller:

               Workplace Holdings, Ltd.
               222 Lakeview Avenue, 17th Floor
               West Palm Beach, FL 33401
               Attention:  Patrick J. DiSalvo

               With a courtesy copy to:

               Lawrence B. Juran, P.A.
               222 Lakeview Avenue, 17th Floor
               West Palm Beach, FL 33401
               Attention: Lawrence B. Juran, Esquire

               If to Buyer:

               Intelligent Life Corporation
               11811 U.S. Highway One, Suite 101
               North Palm Beach, Florida 33408
               Attn: ______________________

               With a courtesy copy to:

               Lewis F. Crippen, Esq.
               Gunster, Yoakley
               777 S. Flagler Drive
               Suite 500 East
               West Palm Beach, FL  33401

or such other party(ies), address(es) or telefax number(s) as either party shall
specify by written notice to the other from time to time.  Any such notice or
communication shall be deemed to have been given as of the date of its receipt
or delivery.  Any legal counsel designated above or any substitute counsel as
designated by Seller and/or Buyer by written notice to the other party is
authorized to give (but not receive) notices under this Agreement on behalf of
its respective client.

     (e) Time is of the Essence.  TIME IS OF THE ESSENCE with respect to each
         ----------------------
provision of this Agreement which requires that action be taken by either party
within a stated time period, or upon a specified date.

     (f) Attorneys' Fees and Costs.  In the event of any dispute or litigation
         -------------------------
arising out of this Agreement, the prevailing party shall be entitled to recover
all fees, expenses and costs incurred, including reasonable attorneys' fees at
both trial and appellate levels.

     (g) Venue.  The venue of any litigation arising out of this Agreement shall
         -----
be Palm Beach County, Florida.

     (h) Captions.  The descriptive captions contained herein are for
         --------
convenience only and shall not control or affect the meaning or construction of
any provision hereof.

                                    Page 17
<PAGE>

     (i) Binding Effect.  This Agreement shall be governed by and construed in
         --------------
accordance with the laws of the State of Florida, and shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective legal
representatives, successors and assigns.

     (j)  Broker.
          ------

       (i) Each of Buyer and Seller hereby represents, covenants and warrants to
the other that the party so representing has dealt with no broker or other
person entitled to a commission in connection with the negotiation or execution
of this Agreement or the consummation of the transactions contemplated hereby,
with the exception of Ben DeVries ("Broker").  If, as and when the transaction
contemplated by this Agreement closes in accordance with the terms and
provisions hereof, Seller shall pay to Broker, in full satisfaction of all
commissions, fees or compensation of any kind owed or owing to Broker arising
out of or related to the transaction contemplated by this Agreement, the sum
equal to four percent (4%) of the Purchase Price (the "Property Sale
Commission").  As a condition thereof, Broker shall execute and deliver to
Seller such documents and instruments as Seller may reasonably request to
evidence the full and complete satisfaction of any claims or demands of Broker
for any commissions, fees or compensation of any kind owed or owing to Broker
arising out of or related to the transaction contemplated by this Agreement and
Broker shall be solely responsible for all commissions, fees or compensation of
any kind owed or owing to any broker, salesperson or finder claiming by, through
or under Broker or having dealt with Broker in connection with the transaction
contemplated by this Agreement.  Broker shall not be due any commission, fee or
compensation of any kind in the event the transaction contemplated by this
Agreement fails to close for any reason whatsoever and, in such event, it shall
not be entitled to all or any portion of the Deposit.  Each of Buyer and Seller
agrees to indemnify and hold harmless the other from any loss, cost or expense
which such non-indemnifying party may incur as a result of any inaccuracy in the
other party's warranties and representations as set forth in this subsection.

       (ii) In the event that Buyer exercises the Expansion Option and Buyer and
the Repurchaser enter into the Expansion Project Lease, Broker shall be due a
commission equal to Six Dollars ($6.00) per square foot of the Expansion
Project, or a total of One Hundred Twenty Thousand and 00/100 Dollars ($120,000)
(the "Expansion Project Lease Commission"), which shall be payable to Broker by
the Repurchaser on the same payment schedule and subject to the same terms and
conditions as the Commission Agreement of even date herewith between Broker and
WK3 Investors with respect to the Initial Project; provided, however, that the
full amount of the Property Sale Commission shall be credited against the
Expansion Project Lease Commission, which shall reduce the Expansion Project
Lease Commission from $120,000 to $95,650.

     (k) Entire Agreement; Rules of Construction.  This Agreement may be
         ---------------------------------------
executed in multiple counterparts; sets forth the entire agreement between the
parties; merges all prior and contemporaneous agreements, understandings,
warranties, or representations; shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns; and may be
canceled, modified or amended only by a written instrument executed by both
Seller and Buyer.

     (l) Further Assurances.  Upon Seller's request, Buyer agrees to execute and
         ------------------
deliver to Seller such additional instruments, certificates and documents as
Seller may reasonably require, whether or not after the Closing Date, in order
to provide Seller with the rights and benefits to which Seller is entitled under
this Agreement.

                                    Page 18
<PAGE>

     (m)   No Recording.    Buyer may not record this Agreement or a memorandum
           ------------
thereof or of the rights granted herein without the prior written approval of
Seller, which approval may be withheld in Seller's sole and absolute discretion.

     (n)   No Assignment.  Buyer may not assign or transfer this Agreement or
           -------------
any right or interest herein without the prior written consent of Seller, which
consent may be withheld in the sole and absolute discretion of Seller. Seller
may assign or transfer this Agreement or any right or interest herein to any
person or entity whatsoever without the consent of Buyer, provided that Seller
shall remain liable for its obligations under this Agreement.

     (o)   Confidentiality.  During the term of this Agreement and at all times
           ---------------
thereafter, neither Buyer nor any of its directors, officers, employees, agents
or attorneys shall in any manner, directly or indirectly, divulge, disclose or
communicate to any person or entity any information of any kind concerning any
matters affecting or relating to Seller nor the terms or provisions of this
Agreement, provided that the foregoing shall not apply to any disclosures or
filings required of Buyer as a company whose shares are registered or traded on
a securities exchange.

     (p)   Survival.  The terms of the following Sections shall survive the
           --------
Closing or any termination of this Agreement: Section 2, Section 4, Section 9,
Section 10, Section 11, and Section 12.

     IN WITNESS WHEREOF, the parties have executed this Agreement, or caused it
to be executed by their respective duly authorized representatives, as an
instrument under seal as of the day and year first above written.

WITNESSES:                      BUYER:
                                INTELLIGENT LIFE CORPORATION, a Florida
                                corporation

                                By:  __________________________________
__________________________      Name:__________________________________
                                Title:_________________________________
__________________________

                                SELLER:
                                WORKPLACE HOLDINGS, LTD., a Florida limited
                                partnership

                                By:  Workplace Investors, Ltd., a Florida
                                     limited partnership, its general partner

                                    By:  Workplace Equity Corporation, a Florida
                                         corporation, its general partner

                                By:_____________________________________
__________________________      Name:___________________________________
                                Title: _________________________________
__________________________

                                    Page 19
<PAGE>

                                ESCROW AGENT:

                                GUNSTER, YOAKLEY, VALDES-FAULI & STEWART, P.A.,
                                a Florida professional corporation

                                By:____________________________________
__________________________      Name:__________________________________
                                Title:_________________________________
__________________________

                                 Schedule of Exhibits
                                 --------------------

     Exhibit 1(a)      Sketch of Property
     Exhibit 7(b)      Consent and Waiver

                                    Page 20
<PAGE>

                                  Exhibit 1(a)
                                  ------------

                               Sketch of Property

                                    Page 21
<PAGE>

                                  Exhibit 7(a)
                                  ------------

PREPARED BY AND RETURN TO:
Lawrence B. Juran, Esq.
222 Lakeview Avenue, 17th Floor
West Palm Beach, FL  33401

                               CONSENT AND WAIVER
               NORTHERN PALM BEACH COUNTY WATER CONTROL DISTRICT
                  UNITS OF DEVELOPMENT NUMBER 9, 9A, 9B and 28

          THE UNDERSIGNED, having purchased the property more particularly
described in Exhibit "A" attached hereto and made a part hereof which is located
within Northern Palm Beach County Improvement District, Units of Development
Number 9, 9A, 9B and 28 and being otherwise fully informed in the premises does
hereby acknowledge, consent and agree as follows:

                             W I T N E S S E T H :

          WHEREAS, Northern Palm Beach County Improvement District f/k/a
Northern Palm Beach County Water Control District (hereinafter referred to as
the "District"), is a political subdivision of the State of Florida, having been
created by Chapter 59-994, Laws of Florida, Act of 1959, as amended and
supplemented; and

          WHEREAS, in accordance with Chapter 59-994, Laws of Florida, Act of
1959, as amended and supplemented, and Chapter 298 of Florida Statutes, the
Board of Supervisors of the District have the authority to create Units of
Development and have done so by creating Units of Development Number 9, 9A, 9B
and 28, the lands of which are fully contained within the boundaries of the
District and include the real property described in Exhibit "A" attached hereto,
which has been purchased by the undersigned; and

          WHEREAS, the District, in accordance with the aforementioned Act and
Chapter 298 of Florida Statutes, also has the authority to adopt and
subsequently amend, if necessary, Water Management Plans for Units of
Development and does intend to adopt a Water Management Plan for Units of
Development Number 9, 9A, 9B and 28; and

          WHEREAS, the District, prior to implementing a Water Management Plan
or any amendment thereto, is required to file with the Fifteenth Judicial
Circuit in and for Palm Beach County, Florida, a Petition for Approval of the
Water Management Plan or any amendments thereto; and

          WHEREAS, subsequent to the filing of the aforementioned Petition for
Approval, three (3) Commissioners are appointed by the Court to prepare a
Commissioner's Report setting forth their assessment of the benefits or damages,
if any, that will accrue to the real property located within said Unit due to
the implementation of the Water Management Plan or any amendments thereto; and

          WHEREAS, the District is required, following preparation of the
aforementioned Report of Commissioners to send to each owner of real  property
located within the Unit of Development for which said Water Management Plan or
amendment thereto is being proposed, copies of the following:

                                    Page 22
<PAGE>

          (a)  Report of Commissioners; and

          (b) A conformed copy of the published Notice of Filing of the Report
of Commissioners; and

          WHEREAS, the undersigned, together with all other real property owners
within Units of Development Nos. 9, 9A, 9B and 28, have the statutory right to
file exceptions with the Fifteenth Judicial Circuit Court in and for Palm Beach
County, Florida, to all or any part of any Commissioners' Report filed for the
Water Management Plan or amendments thereto for Units of Development Nos. 9, 9A,
9B and 28.

          WHEREAS, the District in order to implement a Water Management Plan
for Units of Development Nos. 9, 9A, 9B and 28, will be required to issue bonds
in accordance with Chapter 75 of Florida Statutes and, in order to issue said
bonds, the District will be required to publish an Order to Show Cause setting
forth the filing of the Complaint for Validation of said Bonds and the Hearing
date for same; and

          WHEREAS, the undersigned as a real property owner within Units of
Development Nos. 9, 9A, 9B and 28 has the statutory authority to be present at
the Hearing held on the aforementioned Order to Show Cause and at said Hearing
is entitled to set forth the undersigned's position as to whether or not the
District should be authorized by the Court to issue the proposed bonds.

          NOW, THEREFORE, the Undersigned does hereby
acknowledge, consent and agree as follows:

          1.   The undersigned hereby waives its right to receive and the
requirement of the District to serve upon it a copy of the Report of
Commissioners assessing benefits or damages, if any, for the Water Management
Plan or Amendments thereto filed for Northern Palm Beach County Water Control
District, Units of Development Nos. 9, 9A, 9B and 28.

          2.   The undersigned hereby waives any and all rights and/or
requirements of the District to serve a copy of the Notice of Filing in the
Fifteenth Judicial Circuit in and for Palm Beach County, Florida, of any
Commissioners Report on a Water Management Plan or amendments thereto for
Northern Palm Beach County Water Control District, Units of Development Nos. 9.
9A, 9B and 28.

          3.   The undersigned hereby waives any and all rights to file
exceptions as to all or any part thereof of any Commissioners' Report that is
filed for a Water Management Plan or Amendments thereto for Northern Palm Beach
County Water Control District, Units of Development Nos. 9, 9A, 9B and 28.

          4.   The undersigned hereby consents to the entry of an Order and all
subsequent Orders that are entered by the Fifteenth Judicial Circuit in and for
Palm Beach County, Florida, approving any Report of Commissioner's filed for the
Water Management Plan or amendments thereto for Northern Palm Beach County Water
Control District, Units of Development Nos. 9, 9A, 9B and 28.

          5.   The undersigned hereby consents and agrees to the entry of an
Order by the Fifteenth Judicial Circuit in and for Palm Beach County, Florida,
for validation of any and all bonds that the District may submit to said Court,
the proceeds of which will be used to implement and/or construct the Water
Management Plan or amendments thereto for Northern Palm Beach County Water
Control District, Units of Development Nos. 9, 9A, 9B and 28.

          6.   The undersigned does hereby acknowledge, consent and agree that
this Consent and Waiver shall be binding on the undersigned, and all of said
undersigned's successors and/or assigns.

                                    Page 23
<PAGE>

          7.   The undersigned does hereby acknowledge, consent and agree, that
the undersigned had the opportunity, if the undersigned so desired, to have this
document reviewed by the undersigned's own legal counsel prior to the signing of
same.

          8.   The undersigned does hereby consent to the recording of this
instrument in the Public Records in and for Palm Beach County, Florida.

               Executed this ______ day of ___________, 19__.

Signed, sealed and delivered
in the presence of:                            _______________________

Witness

_________________________                  By:________________________
Printed Witness Name:
                                           Name: _____________________
_________________________
Witness                                    Title:_____________________

_________________________
Printed Witness Name:

STATE OF FLORIDA

COUNTY OF __________________

          The foregoing instrument was acknowledged before me this _____ day of
______, 1999, by ___________________________, as __________________ of
______________, who is personally known to me or who has produced
___________________________ as identification.

                                    __________________________
                                    Printed Name:
                                    Notary Public, State of Florida
                                    Serial Number:
                                    My Commission Expires:

(NOTARY SEAL)

                                    Page 24<PAGE>

                                                                   EXHIBIT 10.16

                           PURCHASE OPTION AGREEMENT

     THIS AGREEMENT is made as of the 1st day of December, 1999, by and between
CENTENNIAL HEALTHCARE MANAGEMENT CORPORATION ("CHMC") and CYPRESS INVESTORS LLC
("Cypress Investors"), DOLPHINS VIEW INVESTORS LLC ("Dolphins View Investors"),
HILLTOP MANOR INVESTORS LLC ("Hilltop Investors"), KANNAPOLIS INVESTORS LLC
("Kannapolis Investors"), and MATHER INVESTORS LLC ("Mather Investors"; Cypress
Investors, Dolphins View Investors, Hilltop Investors, Kannapolis Investors and
Mather Investors are sometimes hereinafter collectively referred to as "Owner").

                             W I T N E S S E T H:

     WHEREAS, CHMC manages on behalf of Cypress Investors that certain 63 bed
nursing center known as Cypress Manor Health and Rehabilitation Center ("Cypress
Manor") pursuant to a Long Term Care Facility Management Agreement dated as of
December 1, 1999; and

      WHEREAS, CHMC manages on behalf of Dolphins View Investors that certain 58
bed nursing center known as The Health and Rehabilitation Centre at Dolphins
View ("Dolphins View") pursuant to a Long Term Care Facility Management
Agreement dated as of December 1, 1999; and

     WHEREAS, CHMC manages on behalf of Hilltop Investors that certain 118 bed
nursing center known as Hilltop Manor Health Care Center ("Hilltop Manor")
pursuant to a Long Term Care Facility Management Agreement dated as of December
1, 1999; and

     WHEREAS, CHMC manages on behalf of Kannapolis Investors that certain 117
bed nursing center knows as THS of Kannapolis ("Kannapolis") pursuant to a Long
Term Care Facility Management Agreement dated as of December 1, 1999; and

     WHEREAS, CHMC manages on behalf of Mather Investors that certain 122 bed
nursing center known as Mather Nursing Center ("Mather") pursuant to a Long Term
Care Facility Management Agreement dated as of December 1, 1999; and

     WHEREAS, Owner has agreed to grant to CHMC or its affiliates a right to
purchase Cypress Manor, Dolphins View, Hilltop Manor, Kannapolis and Mather
(Cypress Manor, Dolphins View, Hilltop Manor, Kannapolis and Mather collectively
referred to as the "Properties") pursuant to the terms of this Agreement;

     NOW, THEREFORE, in consideration of the covenants, conditions and promises
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties do hereby agree as
follows:

      1. Option to Purchase.  Owner hereby grants and conveys to CHMC for the
term hereof an exclusive and irrevocable option (the "Option") to purchase all
of the Properties upon the terms and conditions contained in this Agreement.

      2. Term and Exercise of the Option. The term of the Option shall commence
on December 1, 2000 and shall terminate at midnight, Eastern Standard Time on
December 1, 2005. CHMC may exercise the Option only during its term and only by
delivery of written notice to Owner at the address set forth below. In the event
that the Option is exercised, the closing shall take place at such time as set
out in the notice of exercise of the Option at the offices of CHMC or such other
place as agreed by the parties. Upon exercise of the Option, Owner and CHMC
shall enter into a Purchase and Sale Agreement substantially in the form
<PAGE>

attached hereto as Exhibit "A".

      3. Purchase Price. The total purchase price (hereinafter referred to as
the "Purchase Price") of the Properties shall be that amount equal to Owner's
basis in the Properties, being Owner's total acquisition costs of the
Properties, capital improvements, loan fees, closing costs and expenses and any
other costs related to Owner's acquisition of the Properties. The Purchase Price
shall increase by an amount equal to four percent (4%) per annum from December
1, 1999 until the date of closing; provided, however, that if CHMC exercises the
Option prior to December 1, 2001, the Purchase Price shall be increased by eight
percent (8%). The Purchase Price shall be paid in cash at closing, subject to
adjustments contained herein. CHMC shall pay all cost of closing of its
acquisition of the Properties, the intention being that Owner will receive an
annual return of four percent (4%) on its investment in the Properties.

      4. Notices. All notices, demands or requests required or permitted to be
given pursuant to this Agreement shall be in writing and should be deemed to
have been properly given or served and shall be effective upon being deposited
in the United States mail, postpaid and registered or certified with return
receipt requested, provided, however, the time period in which a response to any
notice, demand or request must be given shall commence on the date of receipt by
the addressee thereof. Rejection or other refusal to accept or inability to
deliver because of changed address of which no notice has been given shall
constitute receipt of the notice, demand or request sent. Any such notice,
demand or request shall be sent to the following addresses:

       To Owner:   c/o Five Star Healthcare Properties, LLC
                   400 Perimeter Center Terrace, Suite 650
                   Atlanta, Georgia  30346
                   Attention:  Alan Dahl

       To CHMC:    Centennial HealthCare Management Corporation
                   400 Perimeter Center Terrace, Suite 650
                   Atlanta, Georgia  30346
                   Attention:  Daryl R. Griswold

      5.  Miscellaneous.

         (a) Time is of the essence of this Agreement.

         (b) This Agreement should be governed by and construed in accordance
with the laws of the State of Georgia.

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

         (d) Should any provision of this Agreement require judicial
interpretation, it is agreed that the court interpreting or construing the same
shall not apply a presumption that the terms hereof shall be more strictly
construed against one party by reason of the rule of construction that a
document is to be construed more strictly against the party who itself or
through its agent prepared the same, it being agreed that the agents of all
parties have participated in the preparation hereof.

         (e) This Agreement supersedes all prior discussions and agreements
between Seller and Purchaser with respect to the conveyance of the Property and
all other matters contained herein and constitutes the sole and entire agreement
between Seller and Purchaser with respect thereto. This Agreement may not be
modified or amended unless such amendment is set forth in writing and signed by
<PAGE>

both Seller and Purchaser.

         (f) This Agreement shall apply to, inure to the benefit of and be
binding upon and enforceable against Seller and Purchaser and their respective
heirs, legal representatives, successors and assigns, as the case may be. CHMC
may assigns its rights under this Agreement to any affiliated entity without the
consent of Owner.

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as
to the date first above written.

                             OWNER:

                             Cypress Investors, LLC

                               By:  Five Star Healthcare Properties, LLC
                               Its:   Sole Member

                               By:  Southeast Capital, LLC

                                 By:  /s/ Alan C. Dahl
                                      ---------------------
                                      Alan C. Dahl, Member

                             Dolphins View Investors, LLC
                               By:  Five Star Healthcare Properties, LLC
                               Its:   Sole Member

                               By:  Southeast Capital, LLC

                                 By:  /s/ Alan C. Dahl
                                      ---------------------
                                      Alan C. Dahl, Member

                             Hilltop Manor Investors, LLC
                               By:  Five Star Healthcare Properties, LLC
                               Its:   Sole Member

                               By:  Southeast Capital, LLC

                                 By:  /s/ Alan C. Dahl
                                      ---------------------
                                      Alan C. Dahl, Member

                             Kannapolis Investors, LLC
                               By:  Five Star Healthcare Properties, LLC
                               Its:   Sole Member

                               By:  Southeast Capital, LLC

                                 By:  /s/ Alan C. Dahl
                                      ---------------------
                                      Alan C. Dahl, Member
<PAGE>

                             Mather Investors, LLC
                               By:  Five Star Healthcare Properties, LLC
                               Its:   Sole Member

                               By:  Southeast Capital, LLC

                                 By:  /s/ Alan C. Dahl
                                      ---------------------
                                      Alan C. Dahl, Member

                             Centennial HealthCare Management Corporation

                                 By:  /s/ Kent C. Fosha, Sr.
                                      ------------------------------
                                      Kent C. Fosha, Sr., President
<PAGE>

                                  EXHIBIT "A"

                          PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (the "Agreement"), made and entered into
as of this ___ day of ___________, 200___, by and between [_____________], LLC,
a Georgia limited liability company ("Seller"), and Centennial HealthCare
Management Corporation, a Georgia corporation ("Purchaser").

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

     WHEREAS, Seller has right, title and interest in and to real and personal
property comprising a ____-bed facility known as ______________________________
located at ___________________________ (such real property and personal property
and the business conducted thereon are hereinafter referred to as the
"Facility"); and

     WHEREAS, Seller wishes to sell all of its right, title and interest in and
to the Facility, including the business thereof, to Purchaser and Purchaser
wishes to buy all of Seller's right, title and interest in and to the Facility,
subject to and upon the terms and conditions herein set forth.

     NOW, THEREFORE, in consideration of the premises, the mutual covenants
herein contained, and other good and valuable consideration, the receipt,
adequacy, and sufficiency of which are hereby acknowledged, Seller and Purchaser
hereby agree as follows:

SECTION 1.  PURCHASE AND SALE; ASSIGNMENT.

     Upon the terms and conditions set forth herein, Seller shall sell to
Purchaser and Purchaser shall purchase from Seller all of Seller's right, title
and interest in and to the following:
<PAGE>

         (a) All of those certain tracts or parcels of real property situated at
     ____________ _____________________________, TOGETHER WITH all and singular
     appurtenances now or hereafter belonging thereto, being more particularly
     described in Exhibit "A" attached hereto and by reference made a part
     hereof, and being hereinafter referred to as the "Land"; TOGETHER WITH all
     the improvements and appurtenances thereon situated, and all fixtures and
     furniture attached thereto or appurtenant thereto and used in connection
     therewith, consisting, without limitation, of the Facility, all of which
     conforms with the licenses granted, all plumbing, heating, lighting and
     cooking fixtures, air conditioning fixtures and units, ranges,
     refrigerators, dishwashers, disposals, trash mashers, hot water heaters and
     equipment, boilers, bathroom and kitchen cabinets, antennae, and to the
     extent located on the Land, mantels, door mirrors, venetian blinds, shades,
     drapes, screens, awnings, window boxes, storm doors, ice makers, mail
     boxes, weather vanes, flagpoles, pumps, shrubbery, outdoor statuary,
     carpeting, and licenses and permits (said Land, improvements,
     appurtenances, fixtures and property at the Facility being hereinafter
     collectively referred to as the "Real Property"), TOGETHER WITH all right,
     title and interest, if any, of Seller in and to any land lying in the bed
     of any street, road or avenue, open or proposed, in front of or adjoining
     said Land to the center line thereof, and together with all right, title
     and interest of Seller in and to any award made or to be made in lieu
     thereof, and in and to any unpaid award for damage to said Land by reason
     of change of grade of any street; together with all right, title and
     interest of Seller in and to any award made or to be made in lieu thereof,
     together with all right, title and interest of Seller to the use of strips
     and rights-of-way abutting or adjoining said Land, if any; and

         (b) All licenses and permits (to the extent transferable), equipment,
     furniture, furnishings, fixtures, inventory, supplies and all other
     personal property located on the Real Property or used in connection with
     the business of the Facility as going concerns and with the operation of
     the Facility located thereon, including without limitation all of those
     items of personal property set forth and described in Exhibit "B" attached
     hereto (such personal property is hereinafter referred to as the "Personal
     Property") but excluding personal property set forth and described in
     Exhibit "C" attached hereto (the "Excluded Property").

SECTION 2.  PURCHASE PRICE AND FINANCING.

     2.01. Purchase Price. The purchase price payable by Purchaser to Seller
shall be ___________________ DOLLARS ($________________), plus the net balance
of the accounts outstanding receivable for the Facility. The purchase price
shall be payable all cash at Closing.

     2.02. Compliance with Section 1060 of the Internal Revenue Code. Seller and
Purchaser agree that Exhibit "D", in which the parties have allocated the
Purchase Price among the assets purchased, has been jointly prepared by the
parties hereto. The parties agree that they shall fully comply with the
requirements of Section 1060 of the Internal Revenue Code of 1986, as amended,
and the regulations promulgated thereunder, relating to allocation rules for
certain applicable asset acquisitions, and the parties further agree to use
Exhibit "D" as the basis for completing Form 8594 entitled "Asset Acquisition
Statement Under Section 1060," which they shall both file on a timely basis with
the Internal Revenue Service.
<PAGE>

SECTION 3.  SELLER'S REPRESENTATIONS, WARRANTIES AND COVENANTS.

     As used in this Section and elsewhere in this Agreement the following terms
shall have the following meanings:

         "Knowledge of Seller" or "Seller's Knowledge" shall mean the actual
     knowledge of Seller and the actual knowledge of any general partner of
     Seller.

         "Knowledge of Purchaser" or "Purchaser's Knowledge" shall mean the
     actual knowledge of any member or manager of the Purchaser.

         "Material" or "Materially," when used with reference to any claim,
     obligation, event, omission or other development, shall mean a claim,
     obligation, event, omission or other development having a value or
     potential financial impact in excess of $25,000.00, provided, however, that
     the total value of all claims, obligations, events, omissions or other
     developments deemed not to be Material pursuant to this definition shall
     not exceed $100,000.00.

     Seller hereby makes the following representations, warranties and covenants
to Purchaser, each of which shall be deemed to be Material to the transactions
contemplated by this Agreement:

     3.01. Condition of Facility. To Seller's Knowledge, upon Closing, the
Facility will be in good condition, comparable, in all Material respects, to the
condition existing on the date of this Agreement, ordinary wear and tear
excepted. Except as may be disclosed in Exhibit "E", to Seller's Knowledge the
heating, air conditioning, sewer, plumbing, antennae, and electrical systems in
or relating to the Facility are in good working order in all Material respects,
the painted walls, window treatments, interior and exterior doors, plumbing,
roofs and carpeting of all of the buildings of the Facility are in good repair
in all Material respects and each building of the Facility is free from damage
by termite and insect infestations and the structural supports and members of
all buildings are sound and in good repair in all Material respects. There are
no latent defects in or to the Facility or any portion thereof of which Seller
has been notified. Upon the request of Purchaser, Seller will provide
information in its possession concerning the age of items described above.
Seller shall not remove any item of Personal Property from the Facility prior to
the Closing, except for the purpose of repair or replacement or in the ordinary
course of business, and any such item or its replacement, as the case may be,
shall be included in this transaction.

     3.02. List of Patients. Seller will provide to Purchaser at the Facility a
schedule setting forth the name of each patient of the Facility, the status of
payment or level of care of each patient, and an accounting of security deposits
and patient funds, which accounting is true, complete and correct in all
Material respects. To Seller's Knowledge, the Facility's accounting of patient
funds, which accounting is maintained as a ledger book in the offices of the
Facility, is true, correct and complete in all Material respects, subject to
routine periods for posting of transactions and is available for inspection by
Purchaser in accordance with Section 8 hereof.

     3.03. Financial Statements and Costs Reports. Seller has provided to
Purchaser copies of the following financial statements of the Facility: (i)
unaudited balance sheets as of the end of the Facility last two (2) fiscal years
which, in all Material respects, are true, complete and correct and accurately
reflect the financial condition of the Facility at the respective dates on such
balance sheets; and (ii) unaudited statements of operations for the Facility's
last two (2) fiscal years which, in all Material respects, are true, complete
and correct and accurately reflect its operations during such periods. Seller
will also provide to Purchaser copies of all cost reports and any audits of cost
reports under either Medicare or Medicaid for the two (2) years prior to the
<PAGE>

date hereof for the Facility, the Medicaid rate sheets for the last two (2)
years, and trial balances for the Facility for the year ended December 31, 1998.
Seller shall make available to Purchaser upon Purchaser's request any and all
unaudited balance sheets and statements of operations provided to them from a
comptroller's office and or Medicare intermediary and any internal accounting
working papers of the Seller used in preparing the above-referenced balance
sheets and statements of operations for the Facility. Except as set forth on
Exhibit "F", there have been no Material adverse changes in the financial
condition, business or properties of the Facility since their most recent fiscal
year end. Seller shall make available to Purchaser upon Purchaser's request all
internal accounting working papers prepared during the annual financial reviews
of the Facility for the last two (2) fiscal years and the current fiscal year.

     3.04. Agreements, Contracts and Commitments. Seller has provided to
Purchaser at the Facility a list of all contracts and agreements with respect to
laundry Facility, food services, equipment, furniture, medical equipment,
management, grounds maintenance and other services of the Facility which require
more than 31 days notice for cancellation without penalty. Seller shall not
renew or extend any such contracts without Purchaser's consent, which shall not
be unreasonably withheld; provided, however, that Seller may in the ordinary
course of business renew without Purchaser's consent any contract involving an
amount which, when combined with amounts payable under all other contracts which
are renewed without Purchaser's consent, is not in excess of $5,000. Purchaser
shall assume the listed contracts and agreements or shall cause Seller to
terminate such contracts and agreements before Closing in accordance with
Purchaser's instructions to Seller on or before Closing. Seller shall use its
reasonable efforts to keep all insurance policies or renewals thereof
("Policies") affecting or covering the Facility and their operations in force
and effect up to and including the date of the Closing unless the reason for
such Policies ceases or such Policies are replaced in the ordinary course of
business. Seller shall deliver to Purchaser true and correct copies of all such
Policies in Seller's possession.

     3.05. Discharge of Obligations. Except as may be disclosed in Exhibit "F",
to Seller's Knowledge, Seller has carried out, performed and complied with all
obligations imposed on Seller under any admission agreements, agreements with
patients or agreements with others.

     3.06. Occupancy. To Seller's Knowledge, at the time of this Agreement, the
Facility has existing valid agreements with the patients occupying the Facility.

     3.07. No Rebates or Allowances. Except as may be disclosed in Exhibit "G",
to Seller's Knowledge, none of the patients of the Facility have been given any
concession or consideration for the rental of any patient room, and none of the
patients of the Facility are entitled hereafter to any concessions, rebates,
and/or allowances of free occupancy for any period after the Closing.

     3.08. Repair Requirements. To Seller's Knowledge, there are no outstanding
requirements or recommendations by any mortgagee or any insurance company,
requiring or recommending any repairs or work to be done on the Facility.

    3.09. Litigation. Except as may be disclosed in Exhibit "G", to Seller's
Knowledge, there is no litigation or proceeding pending or threatened, other
than as normal or customary in the health care industry, which would Materially
adversely affect all or any part of the Facility, their assets, property or
business, and Seller has no reasonable grounds to know of any basis for any such
action.

    3.10. No Condemnation Proceedings. To Seller's Knowledge, there are no
<PAGE>

pending or threatened condemnation or eminent domain proceedings which would
Materially adversely affect all or any part of the Facility.

     3.11. Access Public Improvements. Except as may be disclosed in Exhibit
"G", to Seller's Knowledge, all curb cut and street opening permits or licenses
required for vehicular access to and from the Facility over presently existing
roads and driveways have been obtained and paid for and shall be in full force
and effect at the time of Closing. To Seller's Knowledge, no assessments for
public improvements have been made against the Facility which remain unpaid,
including, without limitation, those for construction of sewer and water lines
and mains, streets, sidewalks and curbs. To Seller's Knowledge, there are no
public improvements which have been ordered to be made and/or which have not
hereto been completed, assessed and paid.

     3.12. No Liens Against Personal Property. Except as may be disclosed in
Exhibit "G", all fixtures and articles of Personal Property included in this
sale at Closing will be owned by Seller, free and clear of any conditional bills
of sale, chattel mortgages, security agreements, financing statements, other
security interests, liens or encumbrances of any kind, except for any personal
property taxes (ad valorem), which are liens not yet due and payable.

     3.13. Compliance with Facility Laws. Except as may be disclosed in Exhibit
"G", to Seller's Knowledge the Facility, including without limitation, the
buildings and improvements included thereon, shall be, at the Closing Date, in
compliance in all Material respects with all laws, ordinances, codes,
regulations and requirements of the State of Florida and any political
subdivision or agency thereof, and the federal government and any political
subdivision or agency thereof, concerning and applicable to licensing of nursing
care facilities, together with such other laws, ordinances, codes, regulations
and requirements concerning and applicable to buildings and the Facility
generally, as shown by the licenses previously issued to the Seller, or its
predecessor, by the State of Florida or any other state or federal government or
political subdivision or agency thereof. The Facility is fully licensed by the
State of Florida and in good standing as healthcare providers under the Medicaid
and Medicare programs, as both programs are administered by the federal
government and the State of Florida. The Medicare and Medicaid cost reports for
the last two (2) fiscal years and the current portion of this fiscal year are
true and correct in all Material respects except as may be disclosed in
Exhibit "G".

     3.14. Leased Property. Seller does not lease any personal property,
equipment or fixtures used in the business conducted at the Facility, except as
may be disclosed in Exhibit "G", or as may have been leased by Seller pursuant
to that certain power of attorney granted by Seller to Centennial HealthCare
Management Corporation.

     3.15. Status of Land; Environmental Standards. To Seller's Knowledge, the
Land is legally occupied by the Facility and has been approved by all
governmental authorities having jurisdiction, and all approvals, permits and
certificates required to occupy and operate the Facility have been obtained. To
the Knowledge of Seller, the present use of the Land is in compliance in all
Material respects with all applicable zoning ordinances, building codes, fire
codes, life safety codes, or health department ordinances pertaining thereto,
except as may be disclosed in Exhibit "G". Seller has not received notice that
the Facility is not in compliance with all federal, state and local laws and
ordinances relating to clean air, water, waste disposal, toxic substances and
other environmental regulations. Seller has not received notice that the
Facility is not in compliance with all laws and ordinances relating to
occupational health and safety. To Seller's Knowledge, during the period of
Seller's ownership of the Facility, Seller has not caused or permitted the
Facility to be used to generate, manufacture, refine, transport, treat, store,
<PAGE>

handle, dispose, transfer, produce or process Hazardous Substances (as
hereinafter defined), or other dangerous or toxic substances, or solid waste,
except in compliance with all applicable federal, state, and local laws or
regulations or except for Hazardous Substances in non-reportable quantities. To
Seller's Knowledge, during the period of Seller's ownership of the Facility
there has been no Release (as hereafter defined) of any Hazardous Substances on
or off-site of the Facility. As used herein, (a) "Hazardous Substances" include
any pollutants, dangerous substances, toxic substances, hazardous wastes,
hazardous materials, or hazardous substances as defined in or pursuant to the
Resource Conservation and Recovery Act (42 U.S.C. Section 6901, et seq.) as
amended, the Comprehensive Environmental Response, Compensation and Liability
Act (42 U.S.C. Section 9601, et seq.) as amended, the Clean Water Act (33 U.S.C.
Section 1251, et seq.) as amended, or any other federal, state or local
environmental law, ordinance, rule or regulation, and (b) "Release" means
releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, disposing or dumping. Except as may be disclosed
by an environmental audit of the Facility, to Seller's Knowledge, there has not
been incorporated into the Facility and the Facility does not contain any
asbestos products, urea-formaldehyde, and other known building products which
may be harmful or injurious to human health or constitute Hazardous Substances.

     3.16. Compliance with Setback Requirements. Except as indicated on a survey
of the Real Property, to Seller's Knowledge, all of the improvements of the
Facility are located within the boundaries of the Land and comply with any
applicable zoning setback requirements unique to the Facility.

     3.17. No Management Agreements. Except for the management agreements
between Seller and Centennial HealthCare Management Corporation, which will be
canceled at or after Closing, there is now and will be no management contract
for the Facility at the time of Closing, except as Seller and Purchaser may
agree in writing.

     3.18. Union Agreements and Employee Relations. Except as may be disclosed
on Exhibit G, Seller is not a party to any union or collective bargaining
agreements, nor to the Knowledge of Seller, is there any pending or potential
attempt to unionize any of the employees of the Facility. To Seller's Knowledge,
during the period commencing two (2) years prior to the date hereof and ending
on the Closing Date, the employees of the Facility have not been the subject of
a union election. Seller will provide Purchaser copies of any grievances
received by Seller during the twelve month period immediately preceding the date
hereof.

     To Seller's Knowledge, prior to the period of Seller's ownership of the
Facility, there have been no strikes, lockouts, or other work stoppages,
picketing or labor disputes (other than the negotiation of existing union
contracts, if any, which shall not be deemed to be a labor dispute for purposes
of this Agreement) in which the Facility are or were involved, and, to Seller's
Knowledge, no event has transpired which has or will have a Material adverse
effect on the relationship between Seller and its employees at the Facility.
Seller will provide to Purchaser at the Facility the name and current annual
salary and other compensation or the rate of compensation payable by Seller to
each employee at the Facility and the profit-sharing, bonus or other form of
extra compensation paid or payable by Seller to or for the benefit of each such
person for the Facility's current fiscal year. There are no oral or written
contracts, agreements or arrangements obligating Seller to increase the
compensation or benefits paid or payable to any of its employees now or at any
future time.

     3.19. Real Property Taxes. The real estate and personal property tax
assessment on the Facility are as reflected on the real estate and personal
property tax bills for the Facility (the "Tax Bills") for 1998 and Seller will
<PAGE>

provide to Purchaser at the Facility evidence of the amount of taxes paid and
unpaid in connection with the Tax Bills.

     3.20. Utilities. Seller will provide to Purchaser at the Facility
information concerning the total amounts for the Facility of: (i) water and
sewer bills; (ii) gas bills; (iii) electric bills; (iv) garbage and trash
removal; and (v) repairs and maintenance.

     3.21. No Violations of Law. Seller has not received notice from any
governmental authority of any violation by or Materially adversely affecting the
Facility of any federal or state law or any municipal ordinance or order or
requirement of any governmental authority having jurisdiction over the Facility.
To Seller's Knowledge, there are no notices, suits or judgments relating to any
such violation, including without limitation, fire, zoning, life safety, air or
water pollution or health, food or drug code violations with respect to the
Facility.

     3.22. Maintenance of Business Operations, Employees and Goodwill. Seller
will cooperate with Purchaser to preserve and maintain the Facility's business
operations intact, use its reasonable efforts to keep available to Purchaser the
services of its present employees, with consideration for turnover in the
ordinary course of business, and preserve to the extent reasonably possible the
goodwill of the Facility's business.

     3.23. Inventories and Trade Payables. Seller currently maintains and shall
maintain as of the Closing Date, inventories and supplies reasonably sufficient
and adequate to satisfy state licensing requirements for the operation of the
Facility. All such inventories and supplies shall conform to trade standards for
marketable goods, subject to such spoilage, waste and obsolescence as is normal
in the Facility's ordinary course of business. At Closing, Seller shall certify
that there are no trade payables or other accounts payable incurred in
connection with the Facility, including payables for inventory, supplies and
other consumer goods in the ordinary course of the Facility's business, except
those incurred on Seller's behalf by Centennial HealthCare Management
Corporation as manager in the ordinary course of operations of the Facility (a
list of such payables shall be attached to a certificate furnished by Centennial
HealthCare Management Corporation at Closing). Any payables incurred by Seller
and not by Centennial HealthCare Management Corporation as manager of the
Facility, and any payables incurred by or on behalf of Seller which are not the
ordinary course of business shall be paid by Seller or from funds payable to
Seller at Closing.

     3.24. Organization of Seller. Seller is a limited partnership formed and in
existence under the laws of the State of Georgia and Seller has the power and
authority to own its properties and to carry on its business as and where such
business is now conducted.

     3.25. Due Authorization; No Default. The delivery and execution,
performance of this Agreement by Seller and all other agreements and instruments
to be executed by Seller in connection herewith or pursuant hereto and the
consummation of the sale contemplated hereby have been duly authorized by all
requisite action on the part of the general partner of Seller. When this
Agreement is executed and delivered by the general partners of Seller on behalf
of Seller, it shall constitute the legal, valid and binding obligation of
Seller. The transfer of Seller's right, title and interest in and to the
Facility to Purchaser will not violate in any Material respect any provision of
Seller's Amended and Restated Agreement of Limited Partnership ("Seller's
Partnership Agreement") or any laws governing Seller. Except as may be disclosed
in Exhibit "G", the execution, delivery or performance of this Agreement, or the
consummation of the transactions contemplated hereby, or compliance with any of
the terms or conditions hereof, will not result in the breach in any Material
<PAGE>

respect by Seller of any of the terms, conditions or provisions of any
agreements or instruments to which Seller is a party, or to which it or its
property is bound, or constitute a default in any Material respect under such
agreements or instruments.

     3.26. Consents. Except as set forth in Exhibit "G" and for the agencies and
departments of the State of Florida necessary to issue licenses to operate the
Facility and authorize Medicare and Medicaid reimbursements, there are no
persons whose consent is necessary in order for Seller to consummate the
transactions contemplated by this Agreement, including, without limitation, any
such persons who are:

         (a) the parties to any agreements to which the Seller is a party of or
     by which it is bound; and

         (b) any federal, state or local authorities or governmental regulatory
     agencies having jurisdiction over the Seller (except to the extent any
     licensing and Medicare/Medicaid reimbursement approval for the Facility is
     necessary).

     3.27. Notice as to Material Changes. Seller will promptly advise Purchaser
in writing of the occurrence of any Material events which come to the Knowledge
of Seller after the date of this Agreement and prior to Closing relating to any
of those matters which are the subject of the covenants, representations and
warranties of the Seller contained herein.

     3.28. Accuracy of Information. No representations, warranties or covenants
by Seller or its general partners, nor any statement, list or certificate
furnished or to be furnished to Purchaser pursuant hereto, or in connection with
the transactions contemplated hereby, contains or will contain any Materially
untrue statement of fact or omits or will omit to state a Material fact
necessary to make the statements contained therein not Materially misleading in
light of the circumstances under which they were made.

     3.29. Survival of Warranties and The Representations, Covenants.
warranties, representations and covenants of the Seller contained in this
Agreement shall be true and correct as of the Closing Date in all Material
respects with the same force and effect as if given and made on and as of the
date and time of Closing, and such representations, warranties and covenants
shall survive the Closing and the consummation of the transactions
contemplated this Agreement for the period set forth in Section 13.

SECTION 4. PURCHASER'S REPRESENTATIONS, WARRANTIES AND COVENANTS.

     Purchaser makes the following representations, warranties and covenants to
Seller, each of which shall be deemed to be Material to the transactions
contemplated by this Agreement.

     4.01. Organization of Purchaser. Purchaser is a limited liability company
formed and existing under the laws of the State of Georgia and is qualified to
do business in the State of Florida.

     4.02. Due Authorization and Authority. This Agreement and its execution,
delivery and performance, have been authorized by all requisite action on the
part of Purchaser. The performance of this Agreement by Purchaser will not
result in violation of Purchaser's Operating Agreement, or any Material contract
or commitment to which Purchaser is a party or by which it is bound or any law,
statute, ordinance, regulation or decree of any governmental, regulatory or
judicial body or entity. The members of Purchaser have full power and authority
to make, execute, deliver and perform this Agreement and the transactions
contemplated hereby on behalf of Purchaser, and the execution, delivery and
<PAGE>

performance of this Agreement and the transactions contemplated herein by the
Purchaser have been duly authorized by all necessary corporate action of
Purchaser. When this Agreement is executed and delivered by the members of
Purchaser on behalf of Purchaser, it shall constitute the legal, valid and
binding obligation of Purchaser.

     4.03. Litigation. To Purchaser's Knowledge, there is no litigation
proceeding pending, or threatened, against Purchaser in any court or before any
arbitration or governmental agency, domestic or foreign, which would Materially
adversely affect Purchaser's ability to perform its obligations under this
Agreement.

     4.04. No Default. Neither the execution or delivery of this Agreement or
any agreement required hereby to be executed by Purchaser nor the performance of
Purchaser in compliance with their terms shall:

         (a) Materially conflict with or result in a Material breach or
     constitute or result in a Material default under:

             (i) any judgment, order, injunction, statute, decree, regulation or
         ruling of any court or governmental authority, domestic or foreign,
         to which Purchaser is subject; and

             (ii) any Material agreement, contract, or legally binding
         commitment to which Purchaser is a party.

         (b) give to any person any rights of termination, cancellation or
     acceleration, in or with respect to any Material agreements, contracts,
     indentures or legally binding commitments by which Purchaser is bound; or

         (c) result in the creation or imposition of (or the obligation to
     create or impose) any Material lien, charge or encumbrance upon any of the
     property or assets of Purchaser pursuant to the terms of any indenture,
     mortgage, deed of trust, lease, agreement or other instrument to which
     Purchaser is a party or by which it may be bound.

     4.05. Accuracy of Information. To Purchaser's Knowledge, no representation,
warranty or covenant by Purchaser or its officers or directors, nor any
statement, list or certificate furnished or to be furnished to Seller pursuant
hereto, or in connection with the transactions contemplated hereby, contains or
will contain any Materially untrue statement of fact or omits or will omit to
state a Material fact necessary to make the statements contained therein not
Materially misleading in the light of the circumstances under which they were
made.

     4.06. Consents. Except for the agencies and departments of the State of
Florida necessary to issue licenses to operate the Facility and authorize
Medicare and Medicaid reimbursements, there are no persons whose consent is
necessary in order for Purchaser to consummate the transactions contemplated by
this Agreement, including, without limitation, any such persons who are:

         (a) the parties to any material agreements to which the Purchaser is a
     party of or by which it is bound; and

         (b) any federal, state or local governmental authorities or regulatory
     agencies having jurisdiction over the Purchaser (except to the extent any
     licensing and Medicare/Medicaid reimbursement approval for the Facility is
     necessary).

     4.07. Survival of Representations, Warranties and Covenants. The
warranties, representations and covenants of the Purchaser contained in this
<PAGE>

Agreement shall be true and correct in all Material respects as of the Closing
with the same force and effect as if given and made on and as of the date and
time of Closing, and such representations, warranties and covenants shall
survive the Closing and the consummation of the transactions contemplated by
this Agreement for the period set forth in Section 13.

SECTION 5.  CONVEYANCES AND TITLE.

     5.01. Assignment and Bill of Sale. At Closing, conveyance of all of
Seller's right, title and interest in and to the Real Property and the Personal
Property shall be by special warranty deed and assignment and bill of sale,
respectively. Good, marketable and insurable title to the Real Property and good
and marketable title to the Personal Property shall be conveyed from Seller to
Purchaser free and clear of all liens, claims, charges and encumbrances of any
kind, subject only to taxes for the current year, and those other liens, claims,
charges, encumbrances or objections, if any, set forth in Exhibit "H" attached
hereto and by reference made a part hereof (such other liens, claims, charges,
encumbrances or objections are hereinafter referred to as "Permitted Title
Exceptions").

     5.02. Title Defects. If examination of title reveals any legal defect to
title other than the Permitted Title Exceptions, Purchaser shall furnish Seller
with a written statement thereof on or before Closing and Seller shall have the
option to correct any legal defects, as set forth in Section 8.04.

     5.03. Non-Waiver of Title Objections. Notwithstanding anything stated to
the contrary in this Agreement, nothing herein shall be deemed to be a waiver by
Purchaser of any title objections which appear at or after Purchaser's title
examination, and Purchaser shall have the right to raise any such objections and
require that Seller cure the same prior to Closing as a condition of Purchaser's
obligation to proceed with the Closing.

     5.04. Prorations. The following items shall be adjusted on a pro rata basis
between Seller and Purchaser on the Closing Date:

         (a) General real estate taxes and other taxes and assessments related
     to the Facility;

         (b) Charges for electricity, gas, water, sewer and other utilities to
     be based on projections from most recent invoices or on recent meter
     readings, if actual invoices are not available;

         (c) All amounts due under the service contracts and other agreements
     accepted by Purchaser pursuant to the provisions of this Agreement;

         (d) Prepaid patient charges; and

         (e) Accrued and/or earned fringe benefits of all employees of the
     Facility, including without limitation vacation, sick pay or leave,
     retirement benefits, disability benefits and other employee benefits.

     5.05 Accounts Receivable. Seller shall transfer, convey and assign to
Purchaser at Closing all of Seller's right, title and interest in the accounts
receivable existing as of the Closing Date. Purchaser shall pay Seller the
outstanding balance of such accounts receivable, net of outstanding debt on such
accounts receivable and management fees due thereon. All payments received by
Seller from government agencies or other payors shall be remitted to Purchaser.

     5.06 Inventory. Seller shall transfer and convey to Purchaser at Closing
all of Seller's right, title and interest in the inventory at the Facility.
Purchaser shall pay Seller the value of such inventory at Closing.

<PAGE>

SECTION 6.  CLOSING.

     6.01. Place, Time and Date of Closing. The payments and deliveries
contemplated by this Agreement (other than the post-closing payments
contemplated by this Agreement) shall be made at the offices of Purchaser at
10:00 a.m., local time, on _____________, 200___, or at such other place, time
and date as Purchaser and Seller shall agree. The date on which the last of such
payments and deliveries occurs is the "Closing Date," and such payments and
deliveries constitute the "Closing." The Closing shall not be deemed to have
occurred unless and until all of the conditions set forth in this Agreement have
been satisfied (or appropriately waived); and none of such actions shall be
deemed to have been taken unless and until all of them have been taken (or the
requirement that they be taken appropriately waived); provided, however, that if
all such actions are taken (or appropriately waived), then the Closing shall be
effective on the Closing Date. Failure to close the transactions contemplated by
this Agreement on the date specified in the first sentence of this Section 6.01
shall not in and of itself constitute a reason for a party to terminate this
Agreement, termination being governed by Section 9 of this Agreement, and so
long as this Agreement is not so terminated, the parties shall continue in good
faith to undertake to consummate the transactions contemplated in this Agreement
as soon as practicable.

     6.02. Conveyance of Property Free and Clear of Liens. At Closing hereunder,
all of Seller's right, title and interest in and to the Real Property and
Personal Property and the Facility shall be conveyed free and clear of all
liens, encumbrances, restrictions, assessments (including, without limitation,
any assessments payable in installments, all of which installments have not been
paid), encroachments, and easements, except those set out in the Permitted Title
Exceptions and to which Purchaser has consented. Subject to the Permitted Title
Exceptions, Seller shall have satisfied and canceled of record all such
aforesaid assessments, liens and other encumbrances against said Real Property
and Personal Property, including, without limitation, any mortgage, indenture,
security agreement, or deed to secure debt outstanding on any portion of such
Real Property and Personal Property, unless assumed by Purchaser.

     6.03. Deliveries by Seller. Seller hereby agrees to, and shall, deliver or
cause to be delivered to the Purchaser (unless Purchaser waives delivery of any
one or all) at the Closing the following, each of which shall be in form and
substance reasonably satisfactory to the Purchaser:

         (a) Possession. Possession and occupancy of the Facility subject only
     to any Permitted Title Exceptions;

         (b) Deed. Special warranty deed conveying title to the Real Property to
     Purchaser, duly witnessed and attested for recording in the State of
     Georgia, free and clear of all liens, restrictions and encumbrances other
     than the Permitted Title Exceptions;

         (c) Title Binder; Survey. A title insurance policy (marked title policy
     commitment) issued by a reputable title insurance company in an amount not
     less than the portion of the Purchase Price allocated to the Real Property
     with the costs of such title insurance to be borne by Purchaser, and a
     survey of the Land on which the Facility is located with the cost of such
     survey to be borne by Purchaser;

         (d) Environmental Report; Engineering Report. An environmental report
     for the Facility and an engineering report for the Facility with the costs
     of such reports borne fully by Purchaser.

<PAGE>

         (e) Assignment of Patient Contracts. An assignment of all patient
     contracts, the originals of such contracts, all advance payments held by
     Seller, and all patient property or patients' funds held by Seller and
     complete accounting of same;

         (f) Assignment of Warranties, Guarantees and Indemnities. An assignment
     of any unexpired warranties, guarantees and indemnities now in effect with
     respect to any part of the Real Property or Personal Property and/or any of
     the mechanical systems in same;

         (g) Assignment of Service Contracts. An assignment of all service
     contracts not terminated prior to Closing;

         (h) Assignment and Bill of Sale. A Limited Warranty Assignment and Bill
     of Sale for all of Seller's right, title and interest in and to the
     Personal Property and fixtures located in the Facility, including those
     items described in Exhibit "B" attached hereto and by this reference made a
     part hereof;

         (i) Other Instruments. Such other endorsements, assignments and
     instruments of transfer and conveyance as may be necessary to vest in the
     Purchaser good and marketable title to the assets and business to be sold
     hereunder and as shall be reasonably requested by Purchaser;

         (j) Paid Tax Bill. A copy of the most recently paid real estate tax
     bills;

         (k) Certificates Regarding Mechanics' Liens and Other Matters.
     Certificates or affidavits of Seller in form and substance reasonably
     satisfactory to Purchaser regarding the status of mechanic's liens,
     Seller's right to possession of the Facility, the authority and power of
     the Seller to complete the transactions provided for herein, and the
     accuracy, in all material of Seller's representations, and warranties and
     covenants contained herein;

         (l) Certificate Regarding Absence of Changes. Certificate or affidavit
     of Seller in form and substance reasonably satisfactory to Purchaser that
     there have been no Material changes made to the Facility since the date of
     this Agreement;

         (m) Title Insurance Company Documents. Such documents and instruments
     as may be reasonably required by Purchaser or its title insurer to carry
     out the intent of the parties to this Agreement;

         (n) Admission Agreements; Employee Benefits. The lists and payments
     required by Sections 14 and 15 hereof;

         (o) Patient Records. The patient records and property described in
     Section 16 hereof;

         (p) Repair Records. All painting, repair and maintenance records
     available to Seller;

         (q) Plans and Specifications. The plans and specifications pursuant to
     which the Facility were constructed, if same are available to Seller;

         (r) As-Built Surveys. The most current "as-built" surveys of the
     Facility, if available;
<PAGE>

         (s) Trade Name Assignments. An assignment of the trade name "The Health
     and Rehabilitation Centre at Dolphins View"; and

         (t) Compliance at Closing with Facility Laws. The representation made
     by Seller in Section 3.13 hereof shall be true and correct in all Material
     respects as of the Closing Date.

     6.04. Escrow Closing for Regulatory Delay and Other Conditions. If, on or
before the Closing Date, Purchaser has not received all approvals required by
any federal, state or local regulatory agency or authority with respect to the
transactions contemplated by this Agreement, or if other conditions of Closing
have not been satisfied or waived in writing, Purchaser and Seller shall have
the option to close the purchase in escrow with a mutually acceptable escrow
agent and pursuant to an escrow agreement reasonably acceptable to Purchaser and
Seller; provided, however, that Purchaser may waive its right to close in escrow
based upon applications filed and any formal or informal indications from
regulatory agencies or authorities that approval shall be forthcoming in
ordinary course.

     6.05. Security Deposits, Patient Property and Patient Funds. All security
deposits, patient property and patient funds held by Seller shall be turned over
to the Purchaser at the Closing, together with evidence in form reasonably
satisfactory to Purchaser of Seller's compliance with all applicable laws with
respect to the collection and maintenance of such security deposits, property
and funds. Purchaser shall execute a receipt therefor. Before Closing, Seller
shall provide to Purchaser at the Facility a list of all such security deposits
and patient property and make available the ledger of patient funds as provided
in Section 3.02 hereof. Seller agrees to assist in any audit of such deposits,
property and funds. Seller and Purchaser hereby agree to reimburse and indemnify
and hold free and harmless the other party from any and all liability in
connection with any loss of deposits, patient property and patient funds
incurred by the other party's failure to comply with applicable laws or properly
to handle and account for same.

     6.06. Conditions Precedent to Obligations of Purchaser. All of Purchaser's
obligations to make the deliveries and payments contemplated by Section 6 of
this Agreement are subject to the fulfillment prior to or at the Closing of each
of the following conditions, any one or more of which Purchaser may waive in
whole or in part (and at or prior to the Closing, Purchaser may request a
certificate of the general partner of Seller or such other evidence as Purchaser
reasonably requests concerning the fulfillment of the following conditions):

         (a) Accuracy of Representations, Warranties and Covenants. The
     representations and warranties of Seller contained in this Agreement shall
     be true and correct in all Material respects as of the date when made and
     shall be updated and true and correct in all Material respects as of the
     Closing as though such representations and warranties were made again on
     that date and Seller shall have performed and complied with all Material
     obligations, covenants and agreements with which Seller is required by this
     Agreement to perform or comply on or before the Closing.

         (b) Deliveries. The delivery to Purchaser of those items listed in
     Section 6.03 in form and substance reasonably satisfactory to Purchaser.

         (c) Governmental Consents Obtained or Requirements Satisfied. All
     authorizations, consents and approvals of any governmental or public unit,
     agency, body, authority or governmental or public official or entity
     necessary for the valid consummation of the transactions contemplated by
     (and compliance with or performance under) this Agreement shall have been
     obtained and shall be in full force and effect, including any required
     consents. Without limiting the foregoing, the Purchaser and the Seller
<PAGE>

     shall have filed, or will file, with the appropriate agencies of the State
     of _______________ or subdivisions thereof, as applicable, for all
     approvals necessary to permit the transfer of Seller's right, title and
     interest in and to the Facility and the continued operation of the Facility
     as nursing care facility under applicable _______________ laws. Purchaser
     shall send Seller copies of all correspondence related to such applications
     and notices and Purchaser shall use reasonable dispatch and make all
     reasonable efforts to gain such approvals. Seller shall have responsibility
     for providing to Purchaser any information reasonably required by Purchaser
     and to otherwise cooperate with Purchaser, as reasonably requested, to gain
     such approvals. If Purchaser has not received all approvals required by any
     federal, state or local regulatory agency or authority with respect to the
     transactions contemplated by this Agreement, Purchaser shall have the
     option to require that the purchase be closed in escrow as provided in
     Section 6.04 hereof.

         (d) No Challenge to Transaction. No injunction (temporary or permanent)
     shall have been issued against Seller or Purchaser enjoining the
     consummation of the transactions contemplated by this Agreement, and no
     action, proceeding, investigation, regulation or legislation shall have
     been instituted, threatened or proposed by any governmental or public unit,
     agency, body, authority or other governmental or public officer or entity
     before any court, governmental or public unit, agency, body or authority or
     legislative body that has not been withdrawn, dismissed, rescinded,
     dissolved or otherwise eliminated on or before the Closing Date, to enjoin,
     restrain, delay, prohibit or obtain Material damages (i) with respect to,
     or which is related to, or arises out of, this Agreement or the
     consummation of the transactions contemplated by this Agreement or (ii)
     which, in the reasonable judgment of the Purchaser, would have a Materially
     adverse effect on the business or financial condition of the Facility.

         (e) Consents and Releases Received. Except as provided in (c) above,
     all consents reasonably necessary to complete this transaction shall have
     been obtained by Seller and Seller shall provide evidence thereof in form
     and substance reasonably satisfactory to Purchaser. Except for the
     Permitted Title Exceptions, all liens on the Real Property and Personal
     Property shall have been released in full and UCC termination statements
     shall have been filed or delivered for filing as appropriate. Purchaser
     shall have received consents or agreements from all parties other than
     Seller that all Material contractual arrangements with Seller shall
     continue unaltered in all Material respects; provided, however, that such
     consents shall be required only if the failure to obtain such consent
     would, in the reasonable determination of Purchaser, have a Material
     adverse effect on the business, financial condition or results of
     operations of the Facility; provided, further, however, that none of such
     consents or other assurances shall be given on terms that Materially
     adversely affects the rights of Seller thereunder.

         (f) Title Binder. Purchaser shall have obtained with respect to Real
     Property (including, but not limited to, the Land) a commitment for an
     owner's title insurance policy issued in the name of Purchaser and its
     successors and assigns by such title insurer as Purchaser shall reasonably
     select (i) insuring the title to such Real Property (in a total aggregate
     amount equal to the Purchase Price allocated to the Real Property at
     regular rates, including examination costs) as good, valid and marketable
     title free and clear of all liens, encumbrances and exceptions other than
     those that (A) involve imperfections of title that do not, individually or
     in the aggregate, impair the marketability of the affected property, (B)
     involve easements, covenants, restrictions or other encumbrances that do
     not, individually or in the aggregate, detract from the value of such
<PAGE>

     property, in its current use or interfere with such use of such property,
     or (C) the Permitted Title Exceptions; and (ii) containing no survey
     exceptions or exclusions from coverage that indicate that Purchaser will
     not be able to operate the Facility after the Closing in the manner in
     which it is currently being operated.

         (g) Casualty Losses. On or prior to the time of Closing, the Facility
     shall not have sustained any loss, whether or not insured, by reason of
     physical damage to the Facility caused by fire, flood, accident, explosions
     or other calamity which would Materially adversely affect the carrying on
     of its business in the normal and regular course.

         (h) Union Contract. Any union contract entered into regarding the
     Facility prior to the Closing Date shall be in form and substance
     reasonably satisfactory to Purchaser.

         (i) Insurance. Policies of insurance relating to the Facility, in form
     and substance reasonably satisfactory to Purchaser, shall have been
     obtained by Purchaser. Purchaser agrees to use its reasonable efforts to
     obtain appropriate insurance prior to the Closing Date.

         (j) No Material Adverse Change. During the period prior to the Closing
     Date, no information shall have come to the attention of Purchaser
     reasonably indicating or suggesting that the financial information
     regarding the Facility and Seller is in any Material respect incorrect or
     incomplete. Without limiting the foregoing, any investigation of, or
     information obtained with respect to, Seller or the Facility by Purchaser,
     or any exhibit or schedule or any supplement hereto or any other document
     delivered to Purchaser in connection with this Agreement, shall not have
     revealed any facts or circumstances which, in the reasonable judgment of
     Purchaser, reflect in a Materially adverse way on the financial condition,
     assets, liabilities (absolute, accrued or contingent), reserves, business
     or operations of the Facility.

         (k) Financing. Purchaser shall have received financing on such terms as
     are acceptable to Purchaser.

         (l) Acquisition of Other Facilities. Purchaser shall have entered into
     Purchase and Sale Agreements for the acquisition of those facilities
     described on Exhibit "I" attached hereto on such terms as acceptable to
     Purchaser and closing of such acquisition shall have occurred
     simultaneously with the acquisition of the Facility.

     6.07. Closing Costs. Purchaser shall pay all costs of Closing, including
the cost of recording any deed and any documentary stamps, transfer tax, or
other similar tax and fees and expenses of any attorneys.

     6.08. Deliveries by Purchaser. Purchaser hereby agrees to, and shall,
deliver and pay or to cause to be delivered and paid to Seller the following,
each of which shall be in form or substance reasonably satisfactory to Seller:

         (a) Purchase Price. The Purchase Price as set forth in Section 2.01
     hereof.

         (b) Other Documents. Such other documents, certificates and opinions as
     the Seller may reasonably and timely request in order to document more
     effectively the transactions contemplated by this Agreement or to evidence
     the compliance by Purchaser with any condition of this Agreement.

     6.09. Conditions Precedent to Obligations of Seller. All of the obligations
of Seller to make the deliveries contemplated by this Section 6 are
<PAGE>

subject to the fulfillment prior to or at the Closing of each of the following
conditions, any one or more of which Seller may waive in whole or in part (and
at or prior to the Closing, Seller may request a certificate of Purchaser or
such other evidence as it reasonably requests concerning the fulfillment of the
following conditions):

         (a) Accuracy of Representations, Warranties and Covenants. The
     representations and warranties of Purchaser in this Agreement shall be true
     and correct in all Material respects as of the date when made, and shall be
     updated and true and correct in all Material respects as of the Closing as
     though such representations and warranties were made again on that date and
     Purchaser shall have performed or complied with all Material obligations,
     covenants and agreements with which Purchaser is required by this Agreement
     to perform or comply on or before the Closing.

         (b) Consents Obtained or Requirements Satisfied. All authorizations,
     consents and approvals of any third party, including without limitation any
     governmental or public unit, agency, body, authority or other governmental
     or public official or entity necessary for the valid consummation of the
     transactions contemplated by (and compliance with or performance under)
     this Agreement shall have been obtained and shall be in full force and
     effect. Notwithstanding the foregoing, Purchaser and Seller shall have
     obtained or be in the process of obtaining from the appropriate agencies of
     the State of _______________ or subdivisions thereof, as applicable, all
     approvals necessary to permit a transfer of the Facility under applicable
     _______________ laws.

         (c) Purchase Price. Purchaser shall have delivered to Seller the
     Purchase Price in the manner described in Section 6.09 hereof.

         (d) Deliveries. The Purchaser shall have delivered to Seller those
     other items listed in Section 6.08 hereof, in form and substance reasonably
     satisfactory to Seller.

         (e) No Challenge to Transaction. No injunction (temporary or permanent)
     shall have been issued against Seller or Purchaser enjoining the
     consummation of the transactions contemplated by this Agreement, and no
     action, proceeding, investigation, regulation or legislation shall have
     been instituted, threatened or proposed by any governmental or public unit,
     agency, body, authority or other governmental or public officer or entity
     before any court, governmental or public unit, agency, body or authority or
     legislative body that has not been withdrawn, dismissed, rescinded,
     dissolved or otherwise eliminated on or before the Closing Date, to enjoin,
     restrain, delay, prohibit or obtain Material damages with respect to, which
     is related to, or arises out of, this Agreement or the consummation of the
     transactions contemplated by this Agreement.

         (f) No Material Adverse Change. During the period prior to the Closing
     Date, no information shall have come to the attention of Seller indicating
     or suggesting that the ownership or operation of the Facility, in the
     reasonable judgment of Seller, would be illegal or would make the Facility,
     in the reasonable judgment of Seller, ineligible for Medicare or Medicaid
     reimbursement if owned by Purchaser.
<PAGE>

SECTION 7.  CONDEMNATION, RISK OF LOSS.

     7.01. Condemnation. In the event of the imminent threat or institution of
any proceedings, judicial, administrative or otherwise, which shall relate to
the proposed taking of any substantial portion of the Facility by eminent domain
prior to Closing, Purchaser shall have the right and option to terminate this
Agreement at any time prior to Closing by giving the Seller written notice to
such effect. Seller hereby agrees to furnish Purchaser written notification with
respect to such events of taking within three (3) days from Seller's receipt of
any notification of such events. If Purchaser should decide to terminate this
Agreement, the parties hereto shall be released from respective their
obligations and liabilities hereunder. As used herein, a "substantial portion"
of the Facility shall be deemed to include without limitation, a taking which
would (i) close five (5%) percent or greater of the number of patient rooms or
licensed beds at either of the Facility, (ii) close any one entrance or exit of
either of the Facility, or (iii) cause a loss of future gross revenues in an
amount greater than ten (10%) percent of either of the Facility's most recent
annual gross revenues or a closing of the operations of either of the Facility.

     In the event Purchaser does not elect to terminate this Agreement because
of such taking, at the Closing hereof, Seller shall assign to Purchaser all its
right, title and interest in and to any proceeds arising out of such taking.

     7.02. Risk of Loss. Risk of loss with respect to the Facility is assumed by
Seller until Closing. In the event that either of the Facility is substantially
damaged by fire or other casualty prior to the Closing of this transaction,
Purchaser, at its option, may:

         (a) Elect to terminate this Agreement upon giving written notice of
     such termination to Seller, whereupon the parties hereto shall be released
     from their respective obligations hereunder, or

         (b) Elect to close the sale, whereupon Purchaser shall be entitled to
     and shall receive an assignment of the proceeds of any insurance due to
     Seller with respect to such fire or other casualty.

Aggregate damage of $50,000 or more shall be deemed substantial, without
excluding other damage that may be substantial.

     In the event that the Closing occurs, unless the damages are repaired in
full by Seller prior to Closing, Purchaser shall be entitled to receive an
assignment of the proceeds of any insurance due to Seller (but only to the
extent of proceeds in excess of the amounts expended by Seller on any repairs
related to damage for which such proceeds are due to Seller) with respect to
fire or other casualty losses occurring between the date of this Agreement and
the Closing Date, notwithstanding the fact that such losses are not deemed
substantial.
<PAGE>

SECTION 8.  INSPECTION.

     8.01. Right to Inspect. The Purchaser, or its agents, shall have the right
to inspect the physical condition, environmental condition, structural
competency and good working order of the Facility (including, without
limitation, the heating, air conditioning, sewer, plumbing, antenna and
electrical systems contained therein) prior to Closing. Such right of inspection
and the exercise of such right shall not constitute a waiver by Purchaser of the
breach of any representation or warranty of Seller that might have been
disclosed by such inspection, unless such waiver is made in writing by
Purchaser.

     8.02. Environmental Audits; Surveys. Commencing upon the date of this
Agreement and extending through Closing hereunder, Purchaser shall have the
right to enter the Facility personally or through agents, employees and
contractors for the purpose of making boundary line and topographical surveys of
same, making soil tests thereof and in general making tests, analyses and
investigations of the Facility.

     8.03. Inspection of Records. Prior to Closing, all leases, books or records
of Seller pertaining to the Facility may be inspected by Purchaser at the
Facility, and Purchaser shall be supplied with copies thereof by Seller upon
request.

     8.04. Seller's Options. Purchaser has heretofore inspected and approved the
physical condition of the Facility. Pursuant to Purchaser's right to inspect the
Facility as provided in Section 8.01, hereof, Purchaser shall endeavor to
furnish Seller, prior to the Closing Date, with a written list of all defects in
physical condition, structural competency or good working order which Purchaser
discovers (to the extent such defects are incurred or arise after the date of
this Agreement). Prior to Closing, Seller shall notify Purchaser in writing that
(i) Seller shall and does thereby agree to correct or cause to be corrected all
such defects prior to the Closing, (ii) instead of correcting or causing to be
corrected all such defects, Seller shall and does thereby agree to reduce the
Purchase Price by a specified amount, itemizing how much of that amount is
applicable to each defect, (iii) Seller shall and does thereby agree to correct
or cause to be corrected only certain specified defects prior to Closing, or
shall reduce the Purchase Price by a specified amount with respect to only
certain itemized defects, or both, or (iv) Seller shall not correct or cause to
be corrected any of the defects or agree to any reduction in the Purchase Price
on account thereof. Seller's failure timely to give Purchaser such written
notice prior to the Closing Date shall be deemed to be and shall constitute
Seller's notice as provided in (iv) above. In the event Seller notifies
Purchaser that Seller shall not correct or cause to be corrected all of such
defects prior to the Closing under the provisions of (ii), (iii) or (iv) above,
Purchaser may, at its option, after receiving such notice, terminate this
Agreement, whereupon this Agreement shall be of no further force or effect and
neither of the parties hereto shall have any liability or obligations each to
the other. If Seller agrees to cure such defects prior to Closing or if Seller
informs Purchaser that Seller shall not correct or cause to be corrected such
defects prior to Closing under the provisions of (ii), (iii) or (iv) above, and
Purchaser does not terminate this Agreement prior to Closing, then prior to
Closing, Seller must correct or cause to be corrected such defects or reduce the
Purchase Price, or both, and Seller's notification with respect to such list of
defects shall become part of this Agreement without any further action by the
parties hereto. Seller's obligations hereunder to correct or cause to be
corrected any defects shall survive the Closing.

     8.05. Terms and Conditions of Inspections. Any inspections conducted
pursuant to this Section 8 shall be at any time subject to the following terms
and conditions:

         (a) Seller shall have received reasonable advance notice thereof;

         (b) No such inspection shall interfere with the normal day-to-day
     operation of the Facility; and

         (c) No due diligence objection to Closing shall be raised by Purchaser
     after the Closing Date.
<PAGE>

SECTION 9.  TERMINATION.

     9.01. Circumstances of Termination. This Agreement may be terminated in
either of the following circumstances:

         (a) The conditions to the Agreement in Section 5 and Section 8 are not
     satisfied or the termination circumstances as set forth in Sections 7.01,
     7.02 and 13 occur; or

         (b) The Closing begins or would otherwise occur and Purchaser is not
     obligated to close pursuant to Section 6.06 or Seller is not obligated to
     close pursuant to Section 6.09.

     9.02. Effect of Termination. If this Agreement is terminated pursuant to
Section 9.01, this Agreement shall be deemed thenceforth null and void and no
party hereto shall have any obligation or liability by reason of this Agreement
except as specifically provided herein.

     9.03. Damages Upon Termination. If Purchaser fails to tender the Purchase
Price to Seller at the Closing or fails to perform as required herein or Seller
fails to perform as required herein, then either party shall have all rights or
remedies available to it under law or at equity, including, without limitation,
specific performance and such rights or remedies may be exercised by either
party concurrently or in such order as such party may elect.
<PAGE>

SECTION 10.  BROKER'S COMMISSION.

     Each of Purchaser and Seller warrants to the other that there are no
brokers, finders or other consultants acting on behalf of, or at the request of,
Purchaser or Seller in this transaction. Seller shall indemnify and hold
Purchaser harmless from and against the claims of all persons or entities who
claim commissions through Seller for real estate brokerage fees or commissions
or any other fees arising out of the sale and purchase of all of Seller's right,
title and interest in or to the Facility or the transactions contemplated
hereby. Purchaser shall indemnify and hold Seller harmless from and against the
claims of all persons or entities who claim commissions through Purchaser for
real estate brokerage fees or commissions or any other fees arising out of the
purchase or sale of all of Seller's right, title and interest in or to the
Facility or the transactions contemplated hereby.

SECTION 11.  ASSIGNMENT AND APPROVAL.

     Seller shall not assign its rights and obligations hereunder or any part
thereof to any person, firm, limited partnership or corporation, including a
corporation to be formed hereafter, or other entity, without the prior written
consent of Purchaser. Purchaser may assign its rights and obligations hereunder
without Seller's prior written consent.

SECTION 12.  NOTICES.

     All notices, demands or requests provided for or permitted to be given
pursuant to this Agreement must be in writing. If not otherwise provided
hereunder, all notices, demands or requests to be sent to any party hereto, or
any assignee or any party, shall be deemed to have been properly given or served
by delivering same personally to each party or by sending same by telecopy
(receipt confirmed) or overnight delivery addressed to such party at the
following addresses or telecopy number:

  To Purchaser:      Centennial HealthCare Management Corporation
                     400 Perimeter Center Terrace
                     Suite 650
                     Atlanta, Georgia 30346
                     Attention: Kent Fosha

                     Telecopy Number: (770) 730-1375
<PAGE>

  With a copy to:    Centennial HealthCare Corporation
                     400 Perimeter Center Terrace
                     Suite 650
                     Atlanta, Georgia 30346
                     Attention: Daryl Griswold

                     Telecopy Number: (770)730-1350

  To Seller:         c/o Five Star Healthcare Properties, LLC
                     400 Perimeter Center Terrace
                     Suite 650
                     Atlanta, Georgia 30346
                     Attention: Alan Dahl

                     Telecopy Number: (770) 730-1377

SECTION 13.  MISCELLANEOUS.

     This Agreement shall bind and inure to the benefit of the parties hereto
and their respective executors, administrators, legal representatives, and
permitted successors and assigns. All the terms and conditions of this Agreement
not performed at Closing shall survive the Closing for a period of one (1) year
hereunder and shall not be merged into any general assignment from Seller to
Purchaser. If all or any portion of any of the provisions of this Agreement
shall be declared invalid by laws applicable thereto, then the performance of
such offending provision shall be excused by the parties hereto; provided,
however, that, if the performance of such excused provision Materially affects
any aspect of this transaction, then the party for whose benefit such excused
provision was inserted in this Agreement shall have the right, exercisable by
written notice given to the other party within ten (10) days after such
provision is so declared invalid, to terminate this Agreement; whereupon this
Agreement shall be null and void. The titles or captions of the provisions of
this Agreement are merely descriptive and are not representations of matters
included in or excluded from such provisions. This Agreement and the agreements
contemplated herein constitute the sole and entire agreement between the parties
hereto with respect to the subject matter hereof, and no modification hereof
shall be binding unless set forth in writing, signed by all parties and attached
hereto. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of Georgia (without regard to its rules of
conflicts of laws). Where the context so requires or permits, the use of the
singular form includes the plural, and the use of the plural form includes the
singular, and the use of any gender includes any and all genders.

SECTION 14. ASSUMPTION OF SELLER'S OBLIGATIONS TO THIRD PARTIES.

     Purchaser shall assume the obligations of Seller to provide future care to
all current patients under any admission agreements or other contracts relating
to patients.

SECTION 15. SELLER'S OBLIGATION WITH RESPECT TO EMPLOYEES.

     As of the Closing Date, Seller shall deliver to Purchaser a list of any and
all amounts for current wages due employees as of the Closing Date and taxes
with respect thereto, and all accrued and/or earned fringe benefits including,
without limitation, vacation, pay or sick leave, retirement benefits and
<PAGE>

disability benefits to which employees may be entitled as of the Closing Date,
certified by the general partner of Seller. Such benefits will be prorated in
accordance with the provisions of Section 5.04 of this Agreement.

SECTION 16. PATIENT RECORDS AND PATIENT FUNDS.

     As of the Closing Date, Seller shall deliver to Purchaser all patient
records with respect to the business conducted in connection with the Facility,
which records Purchaser shall maintain and make reasonably available to Seller
for three (3) years after the Closing Date, and Seller shall provide Purchaser
with an updated accounting of all patient funds and other property of patients
held by Seller and shall deliver such funds and other property to Purchaser at
Closing.

SECTION 17.  LIABILITIES.

     Except as specifically provided in this Agreement, Purchaser shall assume
no liabilities of any kind or nature of Seller or any liabilities of any kind or
nature arising out of the business conducted with respect to the Facility prior
to the Closing Date. Purchaser shall assume all liabilities arising out of the
business conducted with respect to the Facility on or after the Closing Date and
Seller shall assume no liabilities of any kind or nature arising out of the
business conducted with respect to the Facility for the period after the Closing
Date.

     Seller shall be responsible for satisfying the Facility's creditors and
trade suppliers in accordance with Section 3.23 hereof. Seller shall indemnify
and hold Purchaser harmless from and against any and all cost, loss, damage or
liability which Purchaser may incur as a result of any "employment loss" as used
in the Worker Adjustment and Retraining Notification Act of 1988 at the Facility
occurring on or after the Closing Date as a result of the transactions
contemplated hereby.

SECTION 18. TRANSFER OF THE TRADE NAME "THE HEALTH AND REHABILITATION CENTRE
AT DOLPHINS VIEW"

     At Closing, Seller shall assign any and all of its right, title and
interest in and to the trade name "_________________________________".

SECTION 19. CASH AND CASH EQUIVALENTS INCLUDED.

     Seller shall convey to Purchaser Seller's right, title and interest in and
to any cash or cash equivalents with respect to the Facility, except as
otherwise specifically provided herein.

SECTION 20.  DELIVERY.

     To the extent Seller is obligated to deliver records or other items to
Purchaser as of the Assignment and such items would be cumbersome or
unreasonable to remove from the Facility, such delivery may be made at the
Facility, regardless of the location of the remainder of the Closing.

SECTION 21. INDEMNIFICATION BY SELLER AFTER CLOSING.

     21.01. Indemnification. If the transactions contemplated in this Agreement
are completed and closed and this Agreement is not terminated, Seller and
Purchaser shall indemnify and hold harmless each other against any loss, damage,
liability or expense (including without limitation legal and other fees)
incurred or sustained by that party as a result of or attributable to any
Material misrepresentation or Material breach of any covenant, warranty or
representation given or made by the other party and against any loss, damage,
<PAGE>

liability or expense (including without limitation legal and other fees) which
would not have been incurred or sustained by that party if such covenants,
representations and warranties had been true and correct in all Material
respects. Seller shall indemnify and hold harmless Purchaser against any claim
by any governmental entity for Medicare or Medicaid overpayment made by such
governmental entity prior to the Closing Date or for Medicare or Medicaid
recapture of depreciation resulting from the sale of the Real Property or
Personal Property or any other change giving rise to such recapture.

     21.02. Tax Indemnification. Without limiting the requirements of the
foregoing Section 21.01, Seller will promptly indemnify and hold harmless
Purchaser against any and all liability for or with respect to taxes for any
taxable period ending on or before the Closing Date that is asserted or assessed
against the Facility. Notwithstanding anything in this Section 21 to the
contrary, any indemnity payable by Seller to Purchaser pursuant to the foregoing
sentence shall be paid within (i) ten days after Purchaser's request therefor or
(ii) ten days prior to the date on which the liability upon which the indemnity
is based is required to be satisfied by Purchaser or the Facility.

     21.03. Limitations. The foregoing is subject to the following limitations:

         (a) Each party shall promptly notify the other parties of any action,
     claim, loss or potential action, claim or loss, in regard to which action,
     claim or loss that party shall seek or may seek indemnification pursuant to
     this Section 21, and in any event within thirty (30) days or such shorter
     period as may be necessary to avoid a default thereof after that party has
     actual knowledge of such action, claim or loss or potential action, claim
     or loss, and, at such time, that party shall tender and permit the other
     party to defend, at such other party's expense, any such action, claim or
     loss.

         (b) Claims under this Section 21, must be asserted within the following
     time periods after the Closing Date:

               Material misrepresentation or Material breach of any covenant,
         warranty or representations - 1 year;

               Any claim by any governmental entity for Medicare or Medicaid
         overpayment made by such governmental entity prior to Closing - 5
         years;

               Recapture of depreciation resulting from the sale of the Real
         Property or Personal Property or other change giving rise to such
         recapture - 5 years.

               Tax indemnification - later of 5 years or running of applicable
         statute of limitations.

     It is understood and agreed that any such claim may be validly asserted by
     Purchaser or Seller during the applicable period if a claim has been
     asserted or threatened during such period which could result in a loss,
     liability, damage, cost or expense for which the Seller or Purchaser would
     be liable pursuant to this Section 21; and

         (c) Neither Seller nor Purchaser shall have rights as to any claim
     pursuant to this Section 21 in the event this Agreement is terminated prior
     to the consummation of the purchase and sale contemplated herein.
<PAGE>

SECTION 22.  EXHIBITS.

     The parties shall have until Closing to agree upon all information to be
filed as a part of the Exhibits to this Agreement.

SECTION 23. REMEDIES NOT LIMITED TO REAL AND PERSONAL PROPERTY.

     The parties shall have all legal and equitable remedies available to the
for breach of this Agreement and shall not be limited to the collateral of the
Real Property and Personal Property.

     IN WITNESS WHEREOF, the parties hereto have executed this Purchase and Sale
Agreement the day and year first hereinabove written.

"SELLER"

_______________________ INVESTORS, LLC

By: Five Star Healthcare Properties, LLC
Its:  Sole Member

 By: Southeast Capital, LLC

   By:
       ---------------------------------
       Alan C. Dahl, Member

 By: Highland Healthcare Capital, LLC

   By:
       ---------------------------------
       J. Stephen Eaton, Member
<PAGE>

"PURCHASER"

CENTENNIAL HEALTHCARE MANAGEMENT CORPORATION

   By:
       ---------------------------------
<PAGE>

                                 EXHIBIT INDEX

Exhibit "A"     REAL PROPERTY DESCRIPTION
-----------
Exhibit "B"     PERSONAL PROPERTY
-----------
Exhibit "C"     EXCLUDED PROPERTY
-----------
Exhibit "D"     PURCHASE PRICE ALLOCATION
-----------
Exhibit "E"     SCHEDULE OF DEFICIENCIES IN THE CONDITION OF THE FACILITY
-----------
Exhibit "F"     CHANGES IN FINANCIAL CONDITION OF THE FACILITY
-----------
Exhibit "G"     LIST OF EXCEPTIONS
-----------
Exhibit "H"     PERMITTED TITLE EXCEPTIONS
-----------
Exhibit "I"     LIST OF ADDITIONAL FACILITIES
-----------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}]]