Document:

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                                                                    EXHIBIT 10.1

                          LIMITED FORBEARANCE AGREEMENT

                  THIS LIMITED FORBEARANCE AGREEMENT (this "Agreement") is dated
as of November 16, 2001, among PINNACLE TOWERS INC., a Delaware corporation (the
"Borrower"), the Parent, each of their Subsidiaries (the Borrower, the Parent
and their Subsidiaries, each a "Loan Party" and collectively, the "Loan
Parties") the several Lenders (as such term is defined in the hereinafter
described Credit Agreement) parties to this Agreement, and BANK OF AMERICA,
N.A., as Administrative Agent for the Lenders (in such capacity, the
"Administrative Agent").

                                   RECITALS:

         A.       The Borrower, the Administrative Agent, and the several
Lenders parties thereto entered into that certain Fifth Amended and Restated
Credit Agreement, dated as of September 17, 1999 (as amended through the date
hereof and as may be further amended, modified, restated, supplemented, renewed,
extended, increased, rearranged and/or substituted from time to time, the
"Credit Agreement").

         B.       The Borrower has advised the Lenders that the Defaults and
Events of Default set forth on the attached Schedule I (the "Anticipated
Defaults") will exist and be continuing upon the Borrower's delivery of a
Compliance Certificate on November 14, 2001.

         C.       The Borrower has requested that the Lenders agree to forbear
from exercising certain rights available to them as a result of the Anticipated
Defaults by the Borrower, and the Lenders have agreed to do so on the terms set
forth herein.

         NOW, THEREFORE, in consideration of the premises and the covenants,
terms, conditions, representations and warranties herein contained, the parties
hereto agree hereby as follows:

         SECTION 1.        DEFINED TERMS. Capitalized terms used herein and not
otherwise defined herein shall have the meanings set forth in the Credit
Agreement.

         SECTION 2.        LIMITED FORBEARANCE. The Borrower has requested that
the Administrative Agent and the Lenders forbear from exercising the rights and
remedies available to them as a result of the Anticipated Defaults during the
period from the date hereof to and including December 12, 2001. The
Administrative Agent and the Lenders hereby agree to forbear from exercising the
rights and remedies available to them as a result of the Anticipated Defaults,
including the right to demand default interest under Section 2.08 of the Credit
Agreement, from the Effective Date (defined in Section 10(f) below) to and
including the Termination Date (as defined below), subject to the terms of this
Agreement and subject to the occurrence of no further Default or Event of
Default either pursuant to the Sections of the Credit Agreement subject to the
Anticipated Defaults or otherwise. Upon the earlier of (i) the occurrence of any
Default or Event of Default, other than the Anticipated Defaults, (ii) the
amendment and waiver of the Anticipated Defaults by the requisite Lenders under
the terms of the Credit Agreement, or (iii) December 12, 2001 (the "Termination
Date"), the Administrative

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 Agent's and the Lenders' agreement herein to forbear from exercising the rights
and remedies available to them as the result of the Anticipated Defaults shall
immediately terminate, and the Administrative Agent and the Lenders shall be
entitled immediately to exercise any and all rights and remedies available under
the Credit Agreement and any other Loan Paper, at law, in equity, or otherwise,
without notice, demand, presentment, notice of dishonor, notice of acceleration,
notice of intent to accelerate, protest, or other formalities of any kind, all
of which are hereby expressly waived by the Borrower. The Borrower and the
Lenders hereby acknowledge Borrower's anticipated noncompliance with the Credit
Agreement as a result of the Anticipated Defaults and acknowledge that this
Agreement constitutes notice thereof and waive any and all further notices with
respect thereto. The agreement of the Administrative Agent and the Lenders
herein shall not constitute a waiver of any Default or Event of Default
including without limitation the Anticipated Defaults. The Borrower hereby
acknowledges that, unless and until the Anticipated Defaults are waived by the
requisite number of Lenders in accordance with the Credit Agreement, the Lenders
shall have no commitment to make Revolver Advances or issue Letters of Credit or
otherwise advance any funds to the Borrower. Notwithstanding any provision in
the Credit Agreement or any other Loan Paper to the contrary, the parties hereto
expressly acknowledge and agree that, until the Termination Date, the
Administrative Agent may renew (but not increase) Letters of Credit in existence
as of the date hereof. Notwithstanding any provision in the Credit Agreement or
any other Loan Paper, the parties hereto expressly acknowledge and agree that,
any draw under any Letter of Credit during the term of this Agreement shall
immediately and automatically result in an obligation for the Borrower to
reimburse the Administrative Agent for any such draw (which reimbursement
obligation may not be paid by the Borrower with the proceeds of a Revolver
Advance). Failure of the Borrower to reimburse the Administrative Agent in
immediately available funds for any such draw within 2 business hours after
receipt of notice of such draw shall constitute an Event of Default hereunder
and under the Credit Agreement (such reimbursement to be effected by payment in
full from the cash collateral account described in Section 4(i) hereof or by
wire transfer of immediately available funds, or any combination of the
foregoing). The parties hereto expressly acknowledge and agree that the
agreement of the Borrower in the preceding two sentences does not affect or
abrogate any of the obligations of the Lenders to the Issuing Bank to
participate in any such draws under the Letter of Credit. The parties hereto
further expressly acknowledge and agree that the agreements of the
Administrative Agent and the Lenders herein shall not in any manner restrict or
impair any rights or remedies available to them with respect to any Persons
other than the Borrower and other Persons guaranteeing the Obligations or
providing collateral security therefor.

         SECTION 3.        OTHER AGREEMENTS. To induce the Administrative Agent
and Lenders to enter into this Agreement, the Borrowers hereby agree as follows:

         (A)      During the period from the Effective Date and continuing until
the Termination Date, the Applicable Margin shall be (i) with respect to
Advances outstanding under the Term Loan A and the Revolver Loan shall be 3.75%
per annum for LIBOR Advances and 2.75% per annum for Base Advances and (ii) with
respect to Advances under the Term Loan B, 4.00% per annum for LIBOR Advances
and 3.00% per annum for Base Advances, provided that, notwithstanding the
foregoing, if there exists a Default or Event of Default other than the
Anticipated Defaults, no LIBOR borrowings shall be available to the Borrower.
During the period from the Effective Date until the Termination Date, while
interest will accrue at the rates described above with respect to the Applicable
Margin, the Borrower will pay interest at the rates

                                      -2-
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per annum and at the times provided in the Credit Agreement. The aggregate
additional amount of interest owed hereunder as a result of the increase in
interest rate set forth in this Section 3(a), shall be due and payable on the
Termination Date.

         (B)      On the Effective Date and continuing until the Termination
Date, all notices to be provided to the Administrative Agent shall be provided
as follows:

                                    William E. Livingstone, IV
                                    Bank of America, N.A.
                                    901 Main Street, 66th Floor
                                    Dallas, Texas 75202
                                    Telephone:       (214) 209-2023
                                    Fax:             (214) 209-3533

                                    with a copy to:

                                    Winstead Sechrest & Minick P.C.
                                    Attention: Melissa Stewart
                                    5400 Renaissance Tower
                                    1201 Elm Street
                                    Dallas, Texas 75270
                                    Telephone:       (214) 745-5200
                                    Fax:             (214) 745-5390

         (C)      On the Effective Date and continuing until the Termination
Date, the Borrower will deliver to the Administrative Agent the following
financial reports, in each case in form and detail satisfactory to the
Administrative Agent:

                  (i)      on the Business Day closest to the 15th of every
month and on the last Business Day of every month, a 13-week rolling cash flow
liquidity forecast (including forecasting of receipts and disbursements);

                  (ii)     on the last Business Day of every month, a variance
report delineating all material variances from the prior week's forecast of
receipts and disbursements; and

                  (iii)    any other information or reports from time to time
requested by Administrative Agent, its counsel or its financial advisers.

         (D)      On the Effective Date and continuing until the Termination
Date, Borrower will, and will cause each of the Parent and their Subsidiaries
(other than Subsidiaries organized under the Laws of the country other than the
United States), to grant a prior first perfected Lien on any of the assets of
the Borrower, the Parent or their Subsidiaries requested by the Administrative
Agent or the Majority Lenders for the benefit of the Administrative Agent and
the Lenders to secure the Obligations, (including, without limitation, all cash,
cash equivalents and deposit accounts of the Parent, the Borrower and their
Subsidiaries), provided that, notwithstanding the foregoing, (i) no foreign
organized Subsidiary of the Parent or the Borrower will be required to

                                      -3-
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grant a Lien on any of its assets, (ii) with respect to any Capital Stock owned
by the Borrower, the Parent, any of their foreign organized Subsidiaries, such
pledge will be limited to 65% of the aggregate outstanding issued amount of
Capital Stock of such foreign organized Subsidiary, (iii) the Borrower will
pledge its interest in 65% of the Capital Stock of the Canada Sub, but such
pledge will be a second Lien, and (iv) the Borrower will use its best efforts to
grant a prior first perfected Lien on twenty additional leasehold mortgages (or
leasehold deeds of trust) requested by the Administrative Agent.

         SECTION 4.        PROCEEDS OF ASSET SALES. On the Effective Date and
continuing until the Termination Date, the Borrower shall use the Net Proceeds
of sales of assets or Properties by the Borrower, the Parent or any of their
Subsidiaries (which for purposes of this Agreement shall not exclude asset sales
in the ordinary course of business, but provided that no such sales of assets or
Properties by the Parent, the Borrower or any of their Subsidiaries shall be
permitted except as set forth in Section 5 hereof) as follows: (i) first, to
establish a $2,500,000 cash collateral account to secure the Obligations,
including but not limited to any letter of credit reimbursement obligations, in
accordance with the terms of a Restricted Cash Collateral Account Agreement
executed by the parties in the form attached hereto as Exhibit A, and (ii)
second, to establish a $200,000 retainer for the benefit of Special Counsel in
connection with the continued legal expenses and legal fees and the consulting
fees of Deloitte Consulting associated with the Loans. To the extent that the
Borrower consummates the sale of certain of the St. Louis, Missouri Collocation
Facilities or any other sales of assets and Properties by the Parent, the
Borrower and their Subsidiaries, the Net Proceeds shall be applied as described
above to the extent there has not already been an asset sale or there has been
an asset sale that did not generate funds adequate to fund the referenced
account and retainer. Any additional Net Proceeds from such sale of the St.
Louis, Missouri Collocation Facilities and all other Net Proceeds from all other
sales of assets and Properties by the Borrower, the Parent or any of their
Subsidiaries will be applied in the following order: (x) to immediately prepay
the scheduled amortization of the Obligations due on December 31, 2001, such
prepayment to be in an aggregate amount equal to $7,321,864.00 (each Lender
agrees that such prepayment application in the order of maturity is specifically
permitted by the Lenders hereunder), (y) to reimburse the Borrower for all
amounts paid by the Borrower between November 1, 2001 and November 15, 2001 for
the reimbursement of the Administrative Agent for its fees and expenses of
counsel and consultants in accordance with the terms of the Credit Agreement,
and (z) to the extent of any remaining Net Proceeds, to prepay the Revolver
Loan, the Term Loan A and the Term Loan B, ratably. Such prepayment amounts
under subsection (z) above shall be applied to installments due in the inverse
order of maturity with respect to Term Loan A and Term Loan B, and shall not
affect the scheduled reductions of the Commitment required by Section 2.11(b) of
the Credit Agreement. Notwithstanding the foregoing, if (A) the Borrower sells
the Collocation Facilities located in Beaumont, Texas in accordance with the
provisions of Section 5 below, (B) all preceding requirements of this Section 4
have been satisfied except subsection (z) above and (C) amounts in the cash
collateral account described in (i) above are not less than $2,500,000, the
Borrower may retain for its own use an amount equal to 20% of the Net Proceeds
of the sale of the Collocation Facilities located in Beaumont, Texas, and the
remaining 80% of such Net Proceeds must be applied in accordance with the terms
of subsection (z) above. Any prepayment amounts applied to the Revolver Loan in
accordance with this Section 4 shall permanently reduce the Commitment.

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         SECTION 5.        PERMITTED ASSET SALES. On the Effective Date and
continuing until the Termination Date, so long as (a) there exists no Default or
Event of Default both before and after giving effect to such sale (except the
Anticipated Defaults), (b) the gross proceeds of each such sale of assets are in
cash only, the Net Proceeds are distributed in accordance with the terms of
Section 4 hereof and the Borrower is in full compliance with the terms of
Section 4 hereof and this Agreement, and (c) all gross proceeds and other monies
from the buyer of any such assets and Properties are wired directly to the
Administrative Agent (and not to the Borrower, the Parent, any of their
Subsidiaries or any other Person) pursuant to instructions from the Borrower and
its Subsidiaries whereupon the Administrative Agent shall distribute such funds
as set forth in Section 4 hereof,

                   (i) the Borrower may consummate the sale of its Collocation
         Facilities in St. Louis, Missouri, described on Schedule II hereof,
         provided that, (x) gross cash proceeds related to such asset sale are
         not less than $21,000,000 and (y) such asset sale is consummated in
         strict accordance with the terms of that certain Purchase and Sale
         Agreement executed by the Borrower and the buyer, dated as of October
         4, 2001, as amended by that certain First Amendment to Purchase and
         Sale Agreement, dated as of November 7, 2001, as in effect on November
         8, 2001 and

                   (ii) the Borrower may consummate the sale of its Collocation
         Facilities owned by the Borrower in Beaumont, Texas, as described on
         Schedule III hereto, provided that, (x) gross proceeds related to such
         asset sale are not less than $300,000, and (y) such asset sale is
         consummated in strict accordance with the terms of that certain
         Purchase and Sale Agreement, executed by the Borrower and the buyer,
         dated as of September 17, 2001.

In connection with any asset sale permitted by this Section 5 or otherwise
consented to by the Lenders in accordance with the terms of the Credit
Agreement, the Administrative Agent is hereby authorized by each Lender to (i)
execute any and all releases deemed appropriate by it to release such assets of
the Borrower, the Parent and their Subsidiaries constituting Collateral from all
Liens and security interests securing all or any portion of the Obligations,
(ii) return to the Borrower any such Collateral in the possession of the
Administrative Agent, and (iii) take such other action as the Administrative
Agent deems necessary or appropriate in connection with such transaction and in
furtherance of the effectuation thereof.

         SECTION 6.        PROHIBITED ACTIONS. On the Effective Date and
continuing until the Termination Date, the Borrower shall not, and shall not
permit the Parent or any of their Subsidiaries to (a) make any Restricted
Payment, except scheduled payments on seller Debt made by the Borrower, and only
as described and in such amounts as set forth on Schedule IV hereto, (b) make
any new Investments other than Investments permitted under Sections 8.04(a)
through (d), Section 8.04(f), Section 8.04(i)(B) and Section 8.04(j) of the
Credit Agreement, or

                                      -5-
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Investments constituting Capital Expenditures permitted by subsection (i) of
this Section 6, (c) incur any additional Debt, except Debt incurred in the
ordinary course of business by the Borrower in the form of accounts payable and
accrued expenses, (d) grant or otherwise permit any new Liens to exist (except
Liens described in subsections (a) through (f) of the definition of Permitted
Liens in the Credit Agreement), (e) sell, transfer or otherwise dispose of any
assets other than as permitted under Section 5 hereof without the consent of
each Lender, (f) enter into any Affiliate transactions, (g) enter into any
Synthetic Leases, (h) merge or consolidate with any Person or (i) make any
Capital Expenditure or acquisition, except the purchase of immaterial office
supplies and equipment from time to time and other Capital Expenditures made
during the term of this Agreement in an amount not more than $4,500,000 in the
aggregate.

         SECTION 7.        RELEASE.

         (A)      Borrower, the Parent, and each of their Subsidiaries
(collectively, the "Borrower Parties") hereby unconditionally and irrevocably
remises, acquits, and fully and forever releases and discharges the
Administrative Agent and the Lenders and all respective Affiliates, Bank
Affiliates and Subsidiaries of the Administrative Agent and the Lenders, their
respective officers, servants, employees, agents, attorneys, financial advisors,
principals, directors and shareholders, and their respective heirs, legal
representatives, successors and assigns (collectively, the "Released Lender
Parties") from any and all claims, demands, causes of action, obligations,
remedies, suits, damages and liabilities of any nature whatsoever, whether now
known, suspected or claimed, whether arising under common law, in equity or
under statute, which any Borrower Party ever had or now has against the Released
Lender Parties which may have arisen at any time on or prior to the date of this
Agreement and which were in any manner related to any of the Loan Papers or the
enforcement or attempted enforcement by the Administrative Agent or the Lenders
of rights, remedies or recourses related thereto (collectively, the "Borrower
Claims").

         (B)      Each Borrower Party covenants and agrees never to commence,
voluntarily aid in any way, prosecute or cause to be commenced or prosecuted
against any of the Released Lender Parties any of the Borrower Claims which may
have arisen at any time on or prior to the date of this Agreement and were in
any manner related to any of the Loan Papers.

         (C)      The agreements of each Borrower Party set forth in this
Section 7 shall survive termination of this Agreement and the other Loan Papers.

         SECTION 8.        CONDITIONS PRECEDENT. The parties hereto agree that
this Agreement shall not be effective until (a) the Administrative Agent shall
have received a copy of this Agreement executed and delivered by each of the
Loan Parties made signatory hereto and by each Lender, (b) the Administrative
Agent shall have received an opinion of counsel to the Parent, the Borrower and
their Subsidiaries in form and substance satisfactory to the Administrative
Agent and Lenders (such opinion to include, without limitation, enforceability
of this Agreement and no conflict with Parent's, Borrower's and their
Subsidiaries' material agreements), and (c) all fees and expenses in connection
with the Loan Papers, including this Agreement, including legal and other
professional fees and expenses incurred on or prior to the

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date of this Agreement by Administrative Agent, including, without limitation,
the fees and expenses of Winstead Sechrest & Minick P.C.and Deloitte Consulting,
shall have been paid.

         SECTION 9.        REPRESENTATIONS AND WARRANTIES. To induce the
Administrative Agent and the several Lenders parties hereto to enter into this
Agreement and to grant the forbearance contained herein, the Parent and the
Borrower jointly and severally represent and warrant to the Administrative Agent
and the Lenders as follows:

         (A)      AUTHORIZATION; NO CONTRAVENTION. The execution, delivery and
performance by the Loan Parties of this Agreement have been duly authorized by
all necessary partnership, corporate or limited liability company action, as
applicable, and do not and will not (i) contravene the terms of any charter
documents of any Loan Party, (ii) conflict with or result in any breach or
contravention of, or the creation of any Lien under, any document evidencing any
contractual obligation to which any Loan Party is a party or any order,
injunction, writ or decree of any governmental authority to which any Loan Party
is a party or its property is subject, or (iii) violate any requirement of Law.

         (B)      GOVERNMENTAL AUTHORIZATION. No approval, consent, exemption,
authorization or other action by, or notice to, or filing with or approvals
required under state blue sky securities laws or by any governmental authority
is necessary or required in connection with the execution, delivery, performance
or enforcement of this Agreement.

         (C)      NO DEFAULT. Other than the Anticipated Defaults, no Default or
Event of Default exists under any of the Loan Papers. No Loan Party is in
default under or with respect to (i) its charter documents or (ii) any material
contractual obligation of such Person. The execution, delivery and performance
of this Agreement shall not result in any default under any contractual
obligation of any Loan Party in any respect.

         (D)      BINDING EFFECT. This Agreement constitutes the legal, valid
and binding obligations of the Loan Parties that are parties thereto,
enforceable against such Loan Parties in accordance with their respective terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, or
similar laws affecting the enforcement of creditors' rights generally or by
equitable principles of general applicability.

         (E)      REPRESENTATIONS AND WARRANTIES. Except with respect to the
existence of the Anticipated Defaults, the representations and warranties set
forth in the Credit Agreement and the other Loan Papers are true and correct in
all material respects on and as of the Effective Date, as if such
representations and warranties were being made on and as of the Effective Date.

         SECTION 10.       MISCELLANEOUS.

         (A)      RATIFICATION AND CONFIRMATION OF LOAN PAPERS. Except as
specifically modified by this Agreement, the terms, provisions, conditions and
covenants of the Credit Agreement and the other Loan Papers remain in full force
and effect and are hereby ratified and confirmed, and the execution, delivery
and performance of this Agreement shall not in any manner operate as a waiver
of, consent to or amendment of any other term, provision, condition

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or covenant of the Credit Agreement or any other Loan Paper. Without limiting
the generality of the foregoing, the forbearance provided by this Agreement
shall not be deemed to constitute a waiver of compliance or consent to
noncompliance by any of the Loan Parties with respect to any other term,
provision, condition or covenant of the Credit Agreement or other Loan Papers.

         (B)      AFFIRMATION OF GUARANTEES. Notwithstanding that such consent
is not required thereunder, the Parent, the Borrower and the Subsidiaries of the
Parent and the Borrower hereby consent to the execution and delivery of this
Agreement by the parties hereto and reaffirm their respective obligations under
each of their respective Guaranties.

         (C)      LIENS. The Parent, the Borrower and the Subsidiaries agree
hereby that all Liens, security interests, assignments, superior titles, rights,
remedies, powers, equities and priorities securing the Obligations including but
not limited to those under the Loan Papers are hereby ratified and confirmed as
valid, subsisting and continuing to secure the Obligations, and this Agreement
shall not affect the priority of such Liens. Nothing in this Agreement shall in
any manner diminish, impair or extinguish any of the Liens securing the
Obligations, the Guaranties, or the other Loan Papers or be construed as a
novation in any respect.

         (D)      HEADINGS. Section and subsection headings in this Agreement
are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose or be given any substantive effect.

         (E)      APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

         (F)      COUNTERPARTS AND EFFECTIVE DATE. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. This Agreement shall become
effective as against all signatories hereto on the date when all of the
conditions precedent set forth in Section 8 of this Agreement have been
satisfied in full (the "Effective Date").

         (G)      FINAL AGREEMENT. THIS AGREEMENT, TOGETHER WITH THE CREDIT
AGREEMENT AND OTHER LOAN PAPERS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW]

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                  IN WITNESS WHEREOF, the parties hereto have caused this
Limited Forbearance Agreement to be duly executed and delivered by their proper
and duly authorized officers effective as of the day and year first above
written.

         THE BORROWER:

                                      PINNACLE TOWERS INC.

                                      ----------------------------------------
                                      By: /s/ Decker Todd
                                         -------------------------------------
                                      Its: Vice President, Treasurer and
                                           Assistant Secretary

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                                      ADMINISTRATIVE AGENT:

                                      BANK OF AMERICA, N.A.,
                                      as Administrative Agent

                                      ----------------------------------------
                                      By:
                                         -------------------------------------
                                      Its:
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                                      LENDERS:

                                      BANK OF AMERICA, N.A., individually as a
                                      Lender

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                                      By:
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                                      Its:
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                                      FLEET NATIONAL BANK (f/k/a
                                      BANKBOSTON, N.A.)

                                      ----------------------------------------
                                      By:
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                                      Its:
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                                      BANKERS TRUST COMPANY

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                                      By:
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                                      Its:
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                                      SOCIETE GENERALE

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                                      By:
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                                      Its:
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                                      UNION BANK OF CALIFORNIA, N.A.

                                      ----------------------------------------
                                      By:
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                                      Its:
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                                      KEY CORPORATE CAPITAL INC.

                                      ----------------------------------------
                                      By:
                                         -------------------------------------
                                      Its:
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                                      COBANK, ACB

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                                      By:
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                                      Its:
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                                      CREDIT LYONNAIS NEW YORK BRANCH

                                      ----------------------------------------
                                      By:
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                                      Its:
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                                      THE BANK OF NOVA SCOTIA

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                                      By:
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                                      Its:
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                                      DRESDNER BANK AG NEW YORK & GRAND CAYMAN
                                      BRANCHES

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

                                      U.S. BANK NATIONAL ASSOCIATION (f/k/a
                                      FIRSTAR BANK, N.A. f/k/a MERCANTILE BANK
                                      NATIONAL ASSOCIATION)

                                      ----------------------------------------
                                      By:
                                         -------------------------------------
                                      Its:
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                                       DEXIA CREDIT LOCAL (f/k/a CREDIT LOCAL
                                       DE FRANCE - NEW YORK AGENCY)

                                      ----------------------------------------
                                      By:
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                                      Its:
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                                      ----------------------------------------
                                      By:
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                                      Its:
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                                       IBM CREDIT CORPORATION

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                                      By:
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                                      Its:
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                                       THE CIT GROUP/EQUIPMENT FINANCING, INC.

                                      ----------------------------------------
                                      By:
                                         -------------------------------------
                                      Its:
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                                             ALLFIRST BANK

                                             --------------------------
                                             By:
                                                ------------------------
                                             Its:
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                                             RAYMOND JAMES BANK, FSB

                                             --------------------------
                                             By:
                                                ------------------------
                                             Its:
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                                             HELLER FINANCIAL, INC.

                                             ---------------------------
                                             By:
                                                ------------------------
                                             Its:
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                                             PILGRIM PRIME RATE TRUST

                                             By:    ING Pilgrim Investments,
                                                    as its investment manager

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
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                                             PILGRIM AMERICA HIGH INCOME

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 ------------------------------

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                                             PPM SPYGLASS FUNDING TRUST

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 ------------------------------

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                                             MORGAN STANLEY DEAN WITTER PRIME
                                               INCOME TRUST

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 ------------------------------

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                                             KZH ING-1 LLC

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 ------------------------------

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                                             KZH ING-2 LLC

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             SEQUILS-ING I (HBDGM), LTD.

                                             By: ING Capital Advisors LLC,
                                                 Collateral Manager and
                                                 Authorized signatory

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             TORONTO DOMINION (NEW YORK), INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             SEQUILS PILGRIM I, LTD.

                                             By:    ING Pilgrim Investments,
                                                    as its investment manager

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 ------------------------------

<PAGE>

                                             WEBSTER BANK

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             ARCHIMEDES FUNDING III, Ltd.

                                             By:    ING Capital Advisors LLC,
                                                    as Collateral Manager

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             CITIZENS BANK OF MASSACHUSETTS

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             Accepted and Agreed as
                                             of September,      , 2001:

                                             PINNACLE HOLDINGS INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             COVERAGE PLUS ANTENNA SYSTEMS, INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             TOWER SYSTEMS, INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             RADIO STATION WGLD, INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>
                                             ICB TOWERS, LLC

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             AIRCOMM OF AVON, LLC

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             HIGH POINT MANAGEMENT CO., INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             TOWER TECHNOLOGY CORPORATION OF
                                             JACKSONVILLE, INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>

                                             INTERSTATE TOWER COMMUNICATIONS,
                                             INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             BROADCAST TOWERS, INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             PINNACLE TOWERS III INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

                                             SHAFFER & ASSOCIATES, INC.

                                             ----------------------------------
                                             By:
                                                -------------------------------
                                             Its:
                                                 -------------------------------

<PAGE>
                                    PINNACLE ST. LOUIS LLC

                                    By:  Pinnacle Towers Inc., sole member

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    SIERRA TOWERS, INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    QTI, INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

<PAGE>

                                    INTRACOASTAL CITY TOWERS, INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    PINNACLE TOWERS IV INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    PINNACLE TOWERS V INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

<PAGE>

                                    PINNACLE SAN ANTONIO L.L.C.

                                    By:  Pinnacle Towers Inc., sole member

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    PINNACLE TOWERS EUROPE L.L.C.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    COASTAL ANTENNAS, INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    TOWER VENTURES II, LLC

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

<PAGE>

                                    PINNACLE TOWERS LTD.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    PINNACLE TOWERS CANADA INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

<PAGE>

                                    PINNACLE TOWERS III CANADA, INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    SHORE COMMUNICATIONS, INC

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

                                    WEST SHORE COMMUNICATIONS, INC.

                                    -------------------------------------------
                                    By:
                                       ----------------------------------------
                                    Its:
                                        ---------------------------------------

<PAGE>

                                   SCHEDULE I

                              ANTICIPATED DEFAULTS

1.       Noncompliance as of September 30, 2001 with the financial covenants
         set forth in Section 8.01 of the Credit Agreement as follows:

         a)       Leverage Ratio, section 8.01(a);

         b)       Consolidated Interest Coverage Ratio, section 8.01(c); and

         c)       Consolidated Pro Form Debt Service Coverage Ratio, section
                  8.01 (d).

2.       Noncompliance with the requirement to deliver third quarter
         consolidating financial statements on November 15, 2001 as required by
         Section 7.01 of the Credit Agreement, which financial statements will
         be delivered no later than November 20, 2001.

3.       Noncompliance with certain collateral covenants set forth in Section
         2.16 of the Credit Agreement, including the following:

                  schedules to certain Security Agreements and Pledge
                  Agreements

                  corporate reinstatements of Coastal Antenna's Inc. and
                  Shaffer & Associates, Inc.

                  dissolution for Pinnacle Towers Europe LLC

                  mortgages/deeds of trust for approximately 30 out of
                  approximately 580 fee owned sites

                  leasehold mortgage amendments for approximately 20 leasehold
                  sites to name record owners of leasehold sites

<PAGE>

                                  SCHEDULE II

                DESCRIPTION OF ST. LOUIS COLLOCATION FACILITIES

<PAGE>

                                  SCHEDULE III

             DESCRIPTION OF BEAUMONT, TEXAS COLLOCATION FACILITIES

<PAGE>

                                  SCHEDULE IV

                   PERMITTED SCHEDULED SELLER DEBT REPAYMENTS

              PINNACLE TOWERS INC. SELLER PROMISSORY NOTES PAYABLE
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
   PROFORMA PRINCIPAL PAYMENT                                               NOV-01             DEC-01
                                                                            ------             ------

<S>                                                                     <C>                <C>
 1 Rock & Withers                                                                              886.71
 2 Maurer                                                                                    1,848.05
 4 Lennon                                                                                      611.92
 5 Central Telephone                                                    320,000.00
 6 HV Towers                                                                                 6,298.32
12 Hardin                                                                                    3,884.86
28 Frank Hicks (Atlanta/Hicks)                                                               6,431.01
30 Azzarelli Development Corporation (Tampa Azzarelli)                                       5,353.55
33 Woodfin-Hirsch                                                                           23,544.51
34 Johnny & Jacklon Howard (Marianna Land)                                                     212.64
37 J & D Trunking-Greenville Rushing Deal                                                    5,807.82
38 Henry & Jacquelyn Flowers                                                                12,631.19
40 John H. Abrams and Helen Dale Abrams                                                      2,138.71
41 H. Stanley Hines                                                                             64.14
41 H. Stanley Hines, as Trustee                                                              3,809.82
41 H. Stanley Hines                                                                          6,223.58
46 Donald N. Woodward                                                                       16,157.06
55 Marguerite Atcher                                                                           315.88
58 S&R Communications Partnership (Flint MI Rice Acq)                                        2,426.60
59 Cyril E. Vetter                                                                         104,429.73
64 Tower Investments Inc (KS Motorola Deal)                                                  2,166.26
65 Stanley C. & Diana M. Norman                                                              1,768.45
69 Dorothy Ferguson Combee                                                                     153.67
                                                                     --------------------------------
                                                                        320,000.00         207,164.48
                                                                     ================================

-----------------------------------------------------------------------------------------------------
               TOTAL PAYMENTS 11/12/01 - 12/31/01                                          527,164.48
-----------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                   EXHIBIT A

                  RESTRICTED CASH COLLATERAL ACCOUNT AGREEMENT<PAGE>
                                                                    EXHIBIT 10.2

                           PURCHASE AND SALE AGREEMENT

                  THIS PURCHASE AND SALE AGREEMENT (this "AGREEMENT") is entered
into as of _______________, 2001, by and between Pinnacle Towers Inc., a
Delaware corporation ("SELLER") and Benn W. Bundy ("PURCHASER"), upon the terms
and conditions set forth herein.

                                   ARTICLE I.
                                PURCHASE AND SALE

                  1.1 PROPERTY. For and in consideration of the premises,
undertakings and mutual covenants set forth herein, Seller hereby agrees to
sell, transfer, assign and/or convey unto Purchaser and Purchaser hereby agrees
to accept, buy and pay for the following properties, rights, interests and
assets (collectively "PROPERTY"):

                           (a) all of the real property described in EXHIBIT A
                  attached hereto and by this reference incorporated herein for
                  all purposes (the land, or interests in the land, described in
                  each such exhibit is herein called "LAND"), together with all
                  buildings and other improvements located thereon (the
                  "IMPROVEMENTS"), subject to the Permitted Exceptions (as
                  hereinafter defined);

                           (b) all tangible personal property and fixtures of
                  any kind owned by Seller and attached to or located within the
                  Improvements and used in connection with the ownership,
                  maintenance or operation of the Land or the Improvements
                  ("PERSONAL PROPERTY");

                           (c) all of the landlord's interest in any leases,
                  licenses, occupancy agreements, or other agreements demising
                  space in, providing for the use of and/or occupancy of the
                  Improvements or the Land (collectively, the "LEASES"); and

                           (d) to the extent only the same are assignable by
                  Seller to Purchaser, all of Seller's right, title, and
                  interest in and to any and all of the following with respect
                  to the Land, the Improvements, the Personal Property and/or
                  the Leases, (i) agreements, such as maintenance, service or
                  utility contracts relating to ownership, maintenance and
                  operation, (ii) warranties currently in force and effect,
                  (iii) all licenses, permits or similar documents, (iv) plans,
                  drawings, specifications, surveys and engineering reports, and
                  (v) Seller's right, if any, to the use of the name "Goodhue"
                  as the name of the building located on the Land (collectively,
                  the "INTANGIBLE PROPERTY").

                  The Property shall exclude, and Seller shall retain (a) all of
Seller's right, title and interest in and to all rights to the tradename,
assumed names, or business names or similar names by which the Property are
currently operated and the goodwill and other intangible assets associated with
the operation of the Property by Seller including "Pinnacle", any tradenames,
symbols, or marks relating thereto and all derivations thereof, (b) any cash,
bank accounts, prepaid obligations, accounts receivable, claims, causes of
action, and rights to receive insurance

<PAGE>

proceeds and condemnation awards, subject to the proration provisions of Article
VII and Article VIII, (c) minute books and records, (d) accounting journals and
books of account (except for such journals and books of account that relate
solely to the Leases), and (e) tax refunds.

                                  ARTICLE II.
                                 PURCHASE PRICE

                  2.1 PURCHASE PRICE. The purchase price for the Properties
shall be an amount equal to the sum of Three Hundred Seventy-five Thousand
Dollars ($375,000) (the "PURCHASE PRICE"), subject to adjustment as set forth
below in Section 2.3.

                  2.2 METHOD OF PAYMENT. The Purchase Price shall be payable as
follows:

                           (a) "EFFECTIVE DATE" means the date a fully executed
                  Agreement is delivered to Port Arthur Abstract, Port Arthur,
                  Texas, (the "TITLE COMPANY"), as indicated by the execution by
                  the Title Company of the Receipt and Acknowledgment attached
                  hereto. On or before the Effective Date, an earnest money
                  deposit (the "EARNEST MONEY DEPOSIT") in the amount of Ten
                  Thousand Dollars ($10,000) in good funds being immediately
                  collectible by the Title Company shall be deposited by
                  Purchaser into an interest bearing escrow account at the Title
                  Company. If the Earnest Money Deposit is not timely paid by
                  Purchaser, then this Agreement shall terminate and the parties
                  shall have no further rights or liabilities hereunder. Any
                  income or interest earned on the Earnest Money Deposit prior
                  to Closing shall be held in the account and shall be deemed a
                  part of the Earnest Money Deposit for all purposes of this
                  Agreement. Except as hereinafter provided, the Earnest Money
                  Deposit shall be delivered to Seller at Closing as a credit to
                  reduce the Purchase Price at the Closing.

                           (b) The balance of the Purchase Price, after reducing
                  the Purchase Price by the amount of the Earnest Money Deposit,
                  shall be paid by Purchaser in same day funds immediately
                  available to the Title Company at the Closing.

                  2.3 INDEPENDENT CONSIDERATION. In consideration of the rights
granted to Purchaser under Section 3.3, Purchaser has on or before the Effective
Date paid to Seller the sum of One Hundred Dollars ($100), the receipt and
sufficiency of which are acknowledged by Sellers.

                                  ARTICLE III.
                           DELIVERIES AND INSPECTIONS

                  3.1 DELIVERIES. As soon as reasonably possible after the
execution of this Agreement but in any event no later than 10 days after the
Effective Date, Seller shall use commercially reasonable efforts to furnish, or
cause to be furnished, to Purchaser, at Seller's sole cost and expense, legible,
true, correct and complete copies of the following material (the "DELIVERED
DOCUMENTS") for the Property:

                           (a) the Survey as required by Section 4.1;

                                       2
<PAGE>

                           (b) a list of material contracts or agreements
                  (including copies of the Leases) affecting the Property to
                  which Seller is a party (the "SERVICE CONTRACTS");

                           (c) a list of all plans and specifications,
                  engineering drawings, blue prints and other architectural or
                  engineering data in the possession of Seller which relate to
                  the Property; and

                           (d) a copy of Seller's most current rent roll
                  applicable to the Leases.

                  EXCEPT AS PROVIDED IN SECTION 5.2, PURCHASER ACKNOWLEDGES AND
AGREES THAT SELLER DELIVERS THE MATERIAL AND INFORMATION DESCRIBED IN THIS
SECTION 3.1 WITHOUT REPRESENTATION OR WARRANTY AS TO THE ACCURACY THEREOF, AND
PURCHASER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT SELLER SHALL HAVE NO
LIABILITY OR RESPONSIBILITY FOR ANY INACCURACY THEREOF.

                  3.2 DISCLAIMER OF WARRANTIES. PURCHASER IS ACQUIRING THE
PROPERTY "AS IS" AND "WHERE IS", WITHOUT REPRESENTATION OR WARRANTY EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT. EXCEPT AS SPECIFICALLY STATED IN THIS
AGREEMENT, SELLER HEREBY SPECIFICALLY DISCLAIMS ANY REPRESENTATION OR WARRANTY,
ORAL OR WRITTEN, INCLUDING, BUT NOT LIMITED TO THOSE CONCERNING (I) THE NATURE
AND CONDITION OF THE PROPERTY AND THE SUITABILITY OF THE PROPERTY FOR ANY AND
ALL ACTIVITIES AND USES WHICH PURCHASER MAY ELECT TO CONDUCT THEREON, (II) THE
MANNER, CONSTRUCTION, CONDITION AND STATE OF REPAIR OR LACK OF REPAIR OF ANY
IMPROVEMENTS LOCATED ON THE PROPERTY, (III) EXCEPT FOR ANY WARRANTIES CONTAINED
IN THE DEED, THE NATURE AND EXTENT OF ANY RIGHT-OF-WAY, LEASE, POSSESSION, LIEN,
ENCUMBRANCE, LICENSE, RESERVATION, CONDITION OR OTHERWISE, AND (IV) THE
COMPLIANCE OF THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES, OR
REGULATIONS OF ANY GOVERNMENT OR OTHER BODY, IT BEING SPECIFICALLY UNDERSTOOD
THAT PURCHASER HAS HAD FULL OPPORTUNITY TO DETERMINE FOR ITSELF THE CONDITION OF
THE PROPERTY. THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN "AS
IS" AND "WHERE IS" BASIS, AND PURCHASER EXPRESSLY ACKNOWLEDGES THAT, IN
CONSIDERATION OF THE AGREEMENTS OF SELLER HEREIN, EXCEPT AS OTHERWISE SPECIFIED
HEREIN, SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR
ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY
OF QUANTITY, QUALITY, CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, ANY IMPROVEMENTS, THE PERSONAL
PROPERTY, OR SOIL, WATER, AIR OR ENVIRONMENTAL CONDITIONS. PURCHASER
ACKNOWLEDGES THAT PURCHASER IS PURCHASING THE PROPERTY BASED SOLELY ON
PURCHASER'S OWN INDEPENDENT INVESTIGATIONS AND FINDINGS AND NOT IN RELIANCE UPON
ANY INFORMATION PROVIDED BY SELLER OR SELLER'S AGENTS OR CONTRACTORS. SELLER HAS
MADE NO AGREEMENT TO ALTER, REPAIR OR IMPROVE ANY OF THE PROPERTY.

                                       3
<PAGE>

                  3.3 DTPA WAIVER. Purchaser's rights and remedies with respect
to this transaction and with respect to all acts or practices of Seller, past,
present or future, in connection with this transaction shall be governed by
legal principles other than the Texas Deceptive Trade Practices - Consumer
Protection Act (the "DTPA"). Accordingly, PURCHASER HEREBY WAIVES THE
APPLICABILITY OF THE DTPA TO THIS TRANSACTION AND ANY AND ALL DUTIES, RIGHTS OR
REMEDIES THAT MIGHT BE IMPOSED BY THE DTPA; provided, however, Purchaser does
not waive Section 17.555 of the DTPA. Purchaser acknowledges, represents and
warrants that Purchaser is not in a significantly disparate bargaining position
with respect to Seller in connection with this transaction; that Purchaser
freely and fairly agreed to this waiver as a part of the negotiations for this
transaction; that Purchaser is represented by legal counsel in connection with
this transaction and Purchaser has conferred with Purchaser's counsel concerning
this waiver; that the Property will not be occupied by Purchaser as Purchaser's
family residence, and that the DTPA does not apply to Purchaser. Purchaser
further recognizes that Seller, in determining to proceed with the entering into
of this Agreement, has expressly relied on this waiver and the inapplicability
of the DTPA.

                  3.4 CONTRACTS TO BE ASSUMED BY PURCHASER. All Service
Contracts under Section 3.1(b) shall be assigned to and assumed by Purchaser at
Closing. Purchaser shall pay all costs, expenses, fees, and/or charges
applicable to terminate any such Service Contract or lease.

                                  ARTICLE IV.
                                SURVEY AND TITLE

                  4.1 SURVEY. No later than 10 days after the Effective Date,
Seller shall provide Purchaser with a copy of the most recent survey of the
Property in Seller's possession (the "SURVEY") prepared by a land surveyor.
Purchaser shall be responsible for, and shall pay the costs of obtaining a new
or updated Survey.

                  4.2 TITLE COMMITMENT.

                           (a) No later than 10 days after the Effective Date,
                  Purchaser shall, at its own expense, cause to be issued and
                  delivered to Purchaser and Seller (i) an owner's title
                  insurance policy commitment (the "TITLE COMMITMENT") from the
                  Title Company setting forth the status of the title to the
                  Land and the Improvements owned by Seller, and (ii) copies of
                  all documents referred to in the Title Commitment, including
                  but not limited to, deeds, lien instruments, plats,
                  reservations, restrictions and easements.

                           (b) In the event any exceptions appear in the Title
                  Commitment, other than the standard printed exceptions that
                  are unacceptable to Purchaser ("OBJECTIONABLE EXCEPTIONS"),
                  then Purchaser shall, on or before 10 days after the Effective
                  Date, notify Seller in writing of such fact, setting forth any
                  Objectionable Exceptions. If (i) Purchaser fails to give such
                  notice timely, Purchaser shall be deemed to have accepted all
                  title exceptions that are reported in

                                       4
<PAGE>

                  the Title Commitment; or (ii) Purchaser does give such notice,
                  Purchaser shall be deemed to have accepted all title
                  exceptions reported in the Title Commitment other than the
                  Objectionable Exceptions expressly set forth in the notice. If
                  Seller fails to cure any Objectionable Exceptions (without
                  having any obligation to do so) on or prior to the end of 45
                  days after receipt of written notice thereof from Purchaser
                  (the "CURE PERIOD"), then Purchaser may terminate this
                  Agreement by delivering written notice to Seller on or before
                  the end of 5 days after expiration of the Cure Period, and
                  upon such termination Purchaser shall be entitled to return of
                  the Earnest Money Deposit, as Purchaser's sole and exclusive
                  remedy for the failure to eliminate or modify any
                  Objectionable Exceptions. If Purchaser fails to give written
                  notice of termination within 5 days after expiration of the
                  Cure Period, then Purchaser shall be deemed to have waived its
                  right to terminate this Agreement pursuant to this Section
                  4.2, and shall be deemed to have accepted the Property subject
                  to the uncured Objectionable Exceptions, and Purchaser shall
                  accept such title as Seller can deliver. The lien for current
                  taxes and all liens, encumbrances, easements, restrictions or
                  other conditions or exceptions to title which are shown on the
                  Title Commitment or survey and which are not timely objected
                  to by Purchaser as Objectionable Exceptions or, if objected to
                  (unless this Agreement is terminated as provided herein), and
                  not cured by Seller as described above are "PERMITTED
                  EXCEPTIONS".

                  4.3 TITLE POLICY. At Closing, Purchaser, at its expense
(except as provided below), may purchase an Owner Policy of Title Insurance for
the Property issued by the Title Company in Purchaser's favor, in the amount of
the Purchase Price, insuring Purchaser's title to the Property (the "Title
Policy").

                  4.4 TITLE. At the Closing, Seller shall convey to Purchaser,
by special warranty deed (the "DEED") in form attached hereto as EXHIBIT B,
indefeasible title in fee simple to the Land and the Improvements, free of any
liens, encumbrances, conditions, easements, assessments, restrictions and other
conditions, except for the following:

                           (a) all Leases covering the Land and/or the
                  Improvements;

                           (b) the lien for general real estate taxes for the
                  calendar year during which the Closing shall occur and
                  subsequent years and subsequent assessments for prior years
                  due to change in land usage or ownership; and

                           (c) the Permitted Exceptions.

                  4.5 BILL OF SALE. At the Closing, Seller shall convey to
Purchaser, by bill of sale and assignment executed by Seller and Purchaser (the
"BILL OF SALE") in the form attached hereto as EXHIBIT C, all of the landlord's
interest in and to all of the Leases and all of Seller's rights, title and
interest in and to the Personal Property and the Intangible Property, free and
clear of any and all liens, security interests, encumbrances, conditions,
easements, assessments and restrictions, except for the matters described in
Section 4.4 hereof.

                                       5
<PAGE>

                                   ARTICLE V.
              COVENANTS, AGREEMENTS, REPRESENTATIONS AND WARRANTIES

                  5.1 SELLER'S REPRESENTATIONS. Seller hereby represents and
warrants to Purchaser the following:

                           (a) Seller is a corporation duly organized and
                  validly existing under the laws of the State of Delaware and
                  Seller has full power and authority to perform all of its
                  obligations under this Agreement and the party executing this
                  Agreement on behalf of Seller has been duly authorized and
                  empowered to bind Seller to this Agreement;

                           (b) Seller has no knowledge of any litigation or
                  proceeding, pending or threatened, against or relating to the
                  Property, other than (i) suits for collection in which Seller
                  is a plaintiff, and (ii) claims in which the Seller's insurer
                  has undertaken the defense and acknowledged liability for the
                  full amount of the claim;

                           (c) Seller is not a "foreign person" within the
                  meaning of Section 1445 of the Internal Revenue Code of 1986,
                  as amended; and

                           (d) to Seller's knowledge, this Agreement constitutes
                  the legal, valid and binding obligation of Seller enforceable
                  in accordance with its terms, subject to the laws applicable
                  generally to creditors' rights.

                  As used in this Section 5.2, "SELLER'S KNOWLEDGE" or a similar
phrase means the current, actual knowledge of the Designated Persons (defined
below), without any independent investigation or inquiry by such persons.
"DESIGNATED PERSONS" means Gloria Wood, the Acquisition Coordinator of Seller.
The representations and warranties contained in this Section 5.2 are (1) made as
of the Effective Date, and (2) made again as of Closing. However, Seller shall
have the right to notify (the "REPRESENTATION AND WARRANTY NOTICE") Purchaser of
any inaccuracies in said representations and warranties by delivering written
notice to Purchaser at any time or times selected by Seller on or before
Closing.

                  5.2 PURCHASER'S REPRESENTATIONS. Purchaser hereby represents
and warrants to Seller that:

                           (a) Purchaser is an individual and has the legal
                  capacity to enter into this Agreement;

                           (b) this Agreement constitutes the legal, valid and
                  binding obligations of Purchaser enforceable in accordance
                  with its terms, subject to the laws applicable generally to
                  creditors' rights;

                           (c) the execution and delivery of this Agreement does
                  not contravene, result in a breach of or constitute a default
                  under any deed of trust, loan agreement, indenture or other
                  contract or agreement to which Purchaser is a party or by
                  which Purchaser or any of its properties may be bound (nor
                  would such

                                       6
<PAGE>

                  execution and delivery constitute such a default with the
                  passage of time or the giving of notice or both);

                           (d) to Purchaser's knowledge, there are no pending or
                  threatened actions, suits or proceedings before or by any
                  court or administrative agency (i) which question the validity
                  of this Agreement or any instrument or agreement executed in
                  connection herewith and (ii) which seek to restrain or
                  prohibit, or to obtain damages or a discovery order with
                  respect to, this Agreement or the consummation of the
                  transactions contemplated hereby; and

                           (e) no consent or approval of any governmental
                  authority is required with respect to the execution and
                  delivery of this Agreement by the Purchaser or the
                  consummation by the Purchaser of the transactions contemplated
                  hereby or the performance by Purchaser of its obligations
                  hereunder.

                  5.3 BANKRUPTCY.

                           (a) Neither Purchaser nor its general partners/
                  members/shareholders, if any, (i) is in receivership or
                  dissolution, (ii) has made an assignment for the benefit of
                  creditors or admitted in writing its inability to pay its
                  debts as they mature, (iii) has been adjudicated a bankrupt or
                  filed a petition in voluntary bankruptcy or a petition or
                  answer seeking reorganization or an arrangement with creditors
                  under the Federal bankruptcy law or any other similar law or
                  statute of the United States or any jurisdiction and no such
                  Petition has been filed against Purchaser or any of its
                  general partner(s), if any, or (iv) to the best of its
                  knowledge, none of the foregoing are pending or threatened.

                           (b) Neither Seller nor its general partners/
                  members/shareholders, if any, (i) is in receivership or
                  dissolution, (ii) has made an assignment for the benefit of
                  creditors or admitted in writing its inability to pay its
                  debts as they mature, (iii) has been adjudicated a bankrupt or
                  filed a petition in voluntary bankruptcy or a petition or
                  answer seeking reorganization or an arrangement with creditors
                  under the Federal bankruptcy law or any other similar law or
                  statute of the United States or any jurisdiction and no such
                  Petition has been filed against Seller or any of its general
                  partner(s), if any, or (iv) to the best of its knowledge, none
                  of the foregoing are pending or threatened.

                                  ARTICLE VI.
                                   CONDITIONS

                  6.1 CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS. In addition
to the conditions provided in other provisions of this Agreement, Seller's
obligations to perform its undertakings provided in this Agreement (including
its obligation to sell the Property) are conditioned on the following:

                           (a) The due performance by Purchaser of each and
                  every undertaking and agreement to be performed by it
                  hereunder in all material respects (including the delivery of
                  the items specified to be delivered by Purchaser in Section
                  7.2)

                                       7
<PAGE>

                  and the truth of each representation and warranty made by
                  Purchaser in this Agreement in all material respects at the
                  time as of which the same is made and as of the Closing Date
                  as if made on and as of the Closing Date.

                           (b) That at no time on or before the Closing Date
                  shall any Bankruptcy/Dissolution Event (as defined below) have
                  occurred with respect to Purchaser, and if Purchaser is a
                  partnership or limited liability company, any general partner
                  or managing member of Purchaser.

                           (c) Seller shall have obtained the consent of any
                  lenders of Seller that have a security interest(s) in the
                  Property to the sale of the Property (or that consent is
                  otherwise requested from) to Purchaser and the release of all
                  such lenders' security interests in the Property.

                  6.2 PURCHASER'S CONDITIONS TO CLOSING. In addition to the
conditions provided in other provisions of this Agreement, Purchaser's
obligations to perform its undertakings provided in this Agreement (including
its obligation to purchase the Property) are conditioned on the following:

                           (a) The due performance by Seller of each and every
                  undertaking and agreement to be performed by it hereunder in
                  all material respects (including the delivery to Purchaser of
                  the items specified to be delivered by Seller in Section 7.2),
                  and the truth of each representation and warranty made by
                  Seller in this Agreement in all material respects at the time
                  as of which the same is made and as of the Closing Date as if
                  made on and as of the Closing Date.

                           (b) That at no time on or before the Closing Date
                  shall a Bankruptcy/Dissolution Event have occurred with
                  respect to Seller.

                                  ARTICLE VII.
                                     CLOSING

                  7.1 CLOSING DATE. The consummation of the purchase and sale
contemplated hereby (the "CLOSING") shall be held at the offices of the Title
Company in Port Arthur, Texas, on a date mutually acceptable to Seller and
Purchaser no later than fifteen (15) days after the Effective Date, unless
extended by Seller pursuant to the cure period provisions of Section 4.2(b)
hereof or as reasonably necessary to allow Seller to obtain the lenders'
releases referenced in Section 6.1(c) hereof. So that neither Seller nor
Purchaser will be required to be physically present at Closing, on or before the
Closing Date, Seller and Purchaser may deliver the executed closing documents
and funds required by the respective parties pursuant to this Agreement to Title
Company with escrow instructions for disbursement of such documents and funds.
The date of the Closing is herein referred to as the "CLOSING DATE".

                  7.2 CLOSING.

                           (a) At Closing, Seller shall deliver or cause to be
                  delivered each of the following items to the Title Company:

                                       8
<PAGE>

                                    (1) the duly executed and acknowledged Deed,
                  conveying the Land and the Improvements to Purchaser, as
                  provided in Section 4.4;

                                    (2) the duly executed and acknowledged Bill
                  of Sale, conveying the Personal Property, as provided in
                  Section 4.5;

                                    (3) an executed affidavit in accordance with
                  the provisions of Section 1445 of the Internal Revenue Code of
                  1986, as amended; and

                                    (4) evidence acceptable to the Title Company
                  authorizing consummation by Seller of the purchase and sale
                  transaction contemplated hereby and the execution and delivery
                  of the closing documents on behalf of Seller;

Seller and Purchaser will execute letters in the form attached hereto as EXHIBIT
D (the "TENANT LETTERS"), addressed to each tenant for which Purchaser receives
from Seller the tenant's security deposit or credit for the tenant's security
deposit, informing each tenant that the Property has been conveyed to Purchaser,
that Purchaser has received and is responsible for such tenant's deposit and
that all future payments and correspondence with the landlord under the lease
are to be made to Purchaser, or as Purchaser shall direct.

                           (b) At Closing, Purchaser shall deliver or cause to
                  be delivered each of the following items to the Title Company:

                                    (1) evidence acceptable to the Title Company
                  and Seller authorizing consummation by Purchaser of the
                  purchase and sale transaction contemplated hereby and the
                  execution and delivery of the closing documents on behalf of
                  Purchaser;

                                    (2) an executed and acknowledged Bill of
                  Sale as provided in Section 4.5 hereof;

                                    (3) all additional documents and instruments
                  as in the opinion of the Title Company are necessary to the
                  proper consummation of this transaction.

                  The Title Company shall hold all of the foregoing items
delivered to it by Seller and Purchaser until Purchaser delivers the funds
required of it under subparagraph (c) of this Section 6.2.

                           (c) At Closing, Purchaser shall deliver to the Title
                  Company for disbursement to Seller the Purchase Price, as well
                  as the sums provided for elsewhere in this Agreement. When
                  such sums have been received by the Title Company, then:

                                    (1) the Title Company shall deliver to
                  Purchaser the documents described in subparagraph (a) of this
                  Section 7.2, together with any Title Policy provided pursuant
                  to Section 4.3;

                                       9
<PAGE>

                                    (2) Seller shall deliver to Purchaser all
                  master keys and regular keys in Seller's possession to all
                  locks on the Property, and the original copies of all Leases
                  which are in Seller's possession;

                                    (3) the Title Company shall deliver to
                  Seller the documents described in subparagraph (b) of this
                  Section 7.2;

                                    (4) Seller shall deliver possession of the
                  Property to Purchaser, subject only to the Permitted
                  Exceptions, and rights of tenants in possession under the
                  Leases;

                                    (5) Purchaser shall mail or deliver all of
                  the Tenant Letters; and

                                    (6) the Title Company shall deliver to
                  Seller the Purchase Price, including the Earnest Money
                  Deposit.

                  7.3 CLOSING PRORATIONS AND COSTS.

                  The items in subparagraphs (a) through (h) of this Section 7.3
shall be apportioned or prorated as to each Property between Seller and
Purchaser as of 11:59 p.m., local time for the Property, on the day preceding
the Closing Date:

                           (a) TAXES AND ASSESSMENTS. Real estate taxes and
                  assessments imposed by governmental authority ("TAXES") and
                  any assessments by private covenant constituting a lien or
                  charge on the Property for the then-current calendar year or
                  other current tax period not yet due and payable. If the
                  Closing occurs prior to the receipt by Seller of the tax bill
                  for the calendar year or other applicable tax period in which
                  the Closing occurs, Purchaser and Seller shall prorate Taxes
                  for such calendar year or other applicable tax period based
                  upon the most recent ascertainable assessed values and tax
                  rates. If the proration provided for in this subparagraph (a)
                  is not based upon the actual Taxes for the calendar year in
                  which the Closing occurs, the parties shall adjust such
                  proration when the actual Taxes are known.

                           (b) COLLECTED RENT. All collected rent and other
                  income under the Leases in effect at the Closing. Seller shall
                  be charged with any rentals collected by Seller before Closing
                  but applicable to any period of time after the day preceding
                  the Closing. Uncollected rent and other income shall not be
                  prorated. If Purchaser collects any delinquencies after
                  Closing, Purchaser shall apply such rent to the obligations
                  owing to Purchaser for its period of ownership and to the
                  reasonable costs of collection, remitting the balance, if any,
                  to Seller. Purchaser shall bill and attempt to collect such
                  delinquent rent in the ordinary course of business, but shall
                  not be obligated to engage a collection agency or take legal
                  action to collect any delinquencies. Seller shall have the
                  right to seek by legal action or otherwise collect any rents
                  delinquent for any period prior to the Closing, but shall not
                  seek to evict a tenant or terminate the Lease of such tenant
                  unless the tenant has vacated the premises under the Lease.

                                       10
<PAGE>

                           (c) UTILITIES. To the extent such expenses are billed
                  to and paid directly by Seller and not tenants under the
                  Leases, utilities, including water, sewer, electric, and gas,
                  based upon the last reading of meters prior to the Closing.
                  Seller shall pay at Closing the bills therefor for the period
                  to and including the Closing, and Purchaser shall pay the
                  bills therefor for the period subsequent thereto. If the
                  utility company will not issue separate bills, Purchaser will
                  receive a credit against the Purchase Price for Seller's
                  portion and will pay the entire bill prior to delinquency
                  after Closing and Purchaser shall be charged its portion of
                  such payment at Closing. No proration shall be made for
                  utility expenses that are separately metered to and paid
                  directly by tenants and for which Seller has no obligation to
                  pay.

                           (d) FEES AND CHARGES UNDER SERVICE CONTRACTS. Fees
                  and charges under the Service Contracts.

                           (e) CAM CHARGES. Where the Leases contain tenant
                  obligations for taxes, common area expenses, operating
                  expenses or additional charges of any other nature ("CAM
                  CHARGES"), and where Seller shall have collected any portion
                  thereof in excess of amounts incurred by Seller for such items
                  for the period prior to the Closing Date, then there shall be
                  an adjustment and credit given to Purchaser on the Closing
                  Date for such excess amounts collected. Purchaser shall apply
                  all such excess amounts to the charges owed by Purchaser for
                  such items for the period after the Closing Date and, if
                  required by the Leases, shall rebate or credit tenants with
                  any remainder. If it is determined at any time after Closing
                  that the amount collected during Seller's ownership period
                  exceeded expenses incurred during the same period by more than
                  the amount previously credited to Purchaser at Closing, then
                  Seller shall promptly pay to Purchaser the deficiency. If it
                  is determined after Closing that the amount collected during
                  Seller's ownership period exceeded expenses incurred during
                  the same period by less than the amount previously credited to
                  Purchaser at Closing, then Purchaser shall promptly pay to
                  Seller the deficiency. Also, if it is determined after Closing
                  that the amount collected during Seller's ownership period is
                  less than the expenses incurred during the same period, then
                  Purchaser shall promptly pay to Seller the deficiency.

                           (f) OTHER EXPENSES. Any and all transfer taxes,
                  intangible taxes, documentary fees, transaction privilege
                  taxes, stamp taxes, gross receipts and other similar taxes,
                  charges, or fees with respect to the transfer of the Property
                  shall be paid by Purchaser. All other expenses related to the
                  ownership or operation of the Property shall be prorated in
                  the manner customary for Jefferson County, Texas.

                           (g) OTHER CLOSING COSTS. Each party shall pay
                  one-half of any escrow fees charged by the Title Company and
                  each party shall pay all of the fees and expenses of its own
                  counsel in entering into and consummating the transactions
                  described in this Agreement. Except as otherwise expressly
                  provided in this Agreement, all other Closing costs,
                  including, without limitation, recording and

                                       11
<PAGE>

                  escrow fees, shall be assessed to the respective parties as is
                  customary in the purchase of improved real property in
                  Jefferson County, Texas, as of the Closing Date.

                           (h) SECURITY DEPOSITS. Seller shall retain all tenant
                  security deposits under the Leases and Purchaser shall receive
                  a credit at Closing against the Purchase Price equal to the
                  sum of all such deposits for which the landlord (including any
                  prior landlord) is liable under the Leases.

                  7.4 CLOSING ESTIMATES AND FINAL ADJUSTMENTS.

                  Seller and Purchaser shall comply with the following:

                           (a) Seller shall prepare a schedule of tentative
                  adjustments required by Section 7.3 and provide such schedule
                  to Purchaser prior to the Closing Date for review and approval
                  by Purchaser and its representatives or accountants. Seller
                  will provide to Purchaser and its representatives and
                  accountants reasonable access during normal business hours to
                  the personnel and accounting and other records of Seller to
                  the extent necessary to review the information contained in
                  such schedule of tentative adjustments. Such adjustments, if
                  and to the extent known or estimated and agreed upon as of
                  such Closing Date, shall be paid by Purchaser to the Seller
                  (if the prorations result in a net credit to Seller), or by
                  the Seller to Purchaser (if the prorations result in a net
                  credit to Purchaser), by adjusting the Purchase Price payable
                  on the Closing Date.

                           (b) Any such adjustments not finally determined or
                  agreed upon as of such Closing Date shall be paid by Purchaser
                  to Seller, or by Seller to Purchaser, as the case may be, in
                  cash as soon as practicable following the receipt or
                  determination of the information necessary to make the
                  adjustments after the Closing Date.

                           (c) Purchaser agrees to perform and shall assume and
                  indemnify and hold harmless Seller from all obligations and
                  liabilities with respect to the Property that relate to
                  periods of time after the Closing Date, including those to
                  tenants for refunds of tenant security deposits required to be
                  made subsequent to the Closing Date.

                                 ARTICLE VIII.
                                    CASUALTY

                  8.1 CASUALTY. If, prior to Closing, the Property is damaged by
fire or other casualty, Sellers will notify Purchaser of such casualty and will
deliver to Purchaser a copy of any of Seller's insurance policies covering the
Property. If the cost of repair of such damage is in excess of One Hundred
Thousand Dollars ($100,000) for such Property, Purchaser may, at its option, (a)
terminate this Agreement by written notice to Seller on or before the earlier to
occur of the last day provided in this Agreement for Closing to occur or 5 days
after the occurrence of such casualty, or (b) elect to acquire the damaged
Property on the Closing Date in its damaged condition and to receive an
assignment of all of Seller's right, title and interest in and to any

                                       12
<PAGE>

claims Seller may have under the insurance policies covering the Property. In
all other events, if a portion of the Property is damaged by fire or other cause
whatsoever, this Agreement shall continue in full force and effect and Seller,
at its election, shall either repair such damage in full before the Closing, or
at Closing Seller shall assign to Purchaser all of Seller's right, title, claims
and proceeds under insurance policies covering the damaged premises, and pay to
Purchaser the amount of the applicable deductibles under such insurance
policies.

                  8.2 CONDEMNATION. If, prior to the Closing Date, all or any
"significant" portion (as hereinafter defined) of the Property is taken by
eminent domain or condemnation (or is the subject of a pending taking which has
not been consummated), Seller shall notify Purchaser of such fact and Purchaser
shall have the option either (i) of proceeding to Closing and accepting the
Property subject to the condemnation or taking and reducing the Purchase Price
by the amount of the condemnation awarded, or (ii) of terminating this Agreement
by giving written notice to Seller not later than 15 days after receiving
written notice from Seller advising of the condemnation or taking. If Purchaser
does not elect to terminate this Agreement, or if an "INSIGNIFICANT" portion
("INSIGNIFICANT" is herein deemed to be any taking which is not "significant",
as such term is herein defined) of the Property is taken by eminent domain or
condemnation, at the Closing Seller shall assign and turnover, and Purchaser
shall be entitled to receive and keep, all awards or other proceeds for such
taking by eminent domain or condemnation. A "SIGNIFICANT" portion of the
Property means any taking where the damage to the owner of the area taken
exceeds One Hundred Thousand Dollars ($100,000).

                  8.3 WAIVER. Purchaser and Sellers each hereby waive the
Uniform Vendor and Purchaser Risk Act and agree that the provisions of Sections
8.1 and 8.2 shall govern the respective rights and obligations of Purchaser and
Sellers with regard to the subject matter of Sections 8.1 and 8.2.

                                  ARTICLE IX.
                             REAL ESTATE COMMISSIONS

                  9.1 INDEMNITY. Purchaser and Sellers shall indemnify and
hereby agree to hold the other party harmless from any brokerage or finder's fee
or commission claimed by any person claiming by, through or under the
indemnifying party for or on account of this Agreement or the transactions
contemplated hereby.

                  9.2 REPRESENTATIONS REGARDING BROKER'S COMMISSIONS/FINDER'S
FEES. Seller represents and warrants to Purchaser that no brokerage or finder's
fee or commission is payable to any party claiming by, through or under such
Seller with respect to the Property or this Agreement. Purchaser represents and
warrants to Seller that no brokerage or finder's fee or commission is payable to
any party claiming by, through or under Purchaser with respect to the Property
or this Agreement. Purchaser represents and discloses to Seller that Purchaser
is a real estate salesman licensed pursuant to the laws of the State of Texas.

                                       13
<PAGE>

                                   ARTICLE X.
                            TERMINATION AND REMEDIES

                  10.1 REMEDIES.

                           (a) If Purchaser defaults in the performance of it
                  obligations under this Agreement, and if such failure
                  continues for 10 days after written notice from Seller to
                  Purchaser specifying such default (provided if such default is
                  the failure to timely close, then the grace period shall be
                  one day only), then, Seller shall, as its sole remedy, be
                  entitled to receive and retain the Earnest Money Deposit as
                  liquidated damages and not as a penalty, and Seller hereby
                  waives the right to pursue any other remedies, including the
                  right to recover damages.

                           (b) If Seller defaults in the performance of its
                  obligations under this Agreement, and if such failure
                  continues for 10 days after written notice from Purchaser to
                  Seller specifying such default (provided if such default is
                  the failure to close, then the grace period shall be one day
                  only), then Purchaser may either terminate this Agreement and
                  receive a return of the Earnest Money Deposit or pursue a
                  claim against Seller for specific performance of this
                  Agreement. Purchaser waives all other remedies (including the
                  right to recover damages) arising from any Seller's breach of
                  this Agreement.

                                  ARTICLE XI.
                             ASSIGNMENT OF AGREEMENT

                  11.1 ASSIGNMENT. Neither Seller nor Purchaser shall assign
their rights or delegate their duties under this Agreement without the written
consent of the other party hereto, except that Purchaser may assign this
Agreement to a limited liability company, limited liability partnership, or
limited partnership controlled by Purchaser, but in connection therewith,
Purchaser shall remain obligated hereon notwithstanding such assignment.

                                  ARTICLE XII.
                                  MISCELLANEOUS

                  12.1 ENTIRE AGREEMENT. This Agreement embodies the entire
agreement between the parties and cannot be varied except by the written
agreement of the parties. All prior agreements between the parties relating to
the Property are hereby terminated.

                  12.2 SURVIVAL. All representations, warranties, covenants and
agreements of Purchaser and Seller contained in this Agreement shall merge into
the documents executed at Closing and shall not survive the Closing; provided,
however, the provisions of (a) Sections 7.3, 7.4, 10.1 and 12.14, which
contemplate performance of obligations after the Closing, shall survive the
Closing for a period of one (1) year following the Closing; and (b) Sections
3.2, 9.1, and 9.2, shall survive forever without limitation. A party may bring
suit on account of the breach of a provision of this Agreement which survives
Closing only if written notice of such breach is given to the breaching party
during the period of survival and suit is commenced within one hundred eighty
(180) days after the expiration of the period of survival, if applicable.

                  12.3 TIME OF ESSENCE. Time is of the essence in this
Agreement.

                  12.4 NOTICES. Any notice required or permitted to be delivered
hereunder shall be deemed to be delivered (a) when received by the addressee if
delivered by courier service, or (b) if mailed, two (2) days after deposit in
the United States mail, postage prepaid, certified mail,

                                       14
<PAGE>

return receipt requested, in each such case addressed to Seller or Purchaser, as
the case may be, at the address or telecopy number set below the signature of
such party hereto. Any party shall have the right to change its address by
giving 5 days' prior written notice to the other parties.

                  12.5 GENDER; NUMBERS. Words of any gender used in this
Agreement shall be held and construed to include any other gender, and words in
the singular number shall be held to include the plural and vice versa unless
the context requires otherwise.

                  12.6 HEADINGS. The captions used in connection with the
articles and sections of this Agreement are for convenience only and shall not
be deemed to construe or limit the meaning of the language of this Agreement.

                  12.7 DAYS. Except where business days are expressly referred
to, references in this Agreement to days are to calendar days, not business
days. Business day means any calendar day except a Saturday, Sunday or national
banking holiday.

                  12.8 GOVERNING LAW. EXCEPT WHERE THE LAWS OF ANOTHER
JURISDICTION ARE MANDATORILY APPLICABLE, THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF TEXAS.

                  12.9 HOLIDAYS. If the final date of any period provided for
herein for the performance of an obligation or for the taking of any action
falls on a Saturday, Sunday or banking holiday, then the time of such period
shall be deemed extended to the next day which is not a Saturday, Sunday or
national banking holiday.

                  12.10 ATTORNEYS' FEES. In the event that a legal action is
brought to enforce the terms of this Agreement, the prevailing party shall be
entitled to collect its costs of court, including reasonable attorneys fees.

                  12.11 INTERPRETATION. The parties acknowledge that each party
and its counsel have reviewed this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
any amendments or exhibits hereto.

                  12.12 SEVERABILITY. If any provisions of this Agreement are
held to be illegal, invalid or unenforceable under present or future laws, such
provision shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this Agreement, and the remaining provisions of this
Agreement shall remain in full force and effect and not be affected by the
illegal, invalid or unenforceable provision or by its severance from this
Agreement, provided that both parties may still effectively realize the complete
benefit of the transaction contemplated hereby.

                  12.13 AMENDMENTS. No modification or amendment of this
Agreement shall be effective unless made in writing and executed by all Seller
and Purchaser. In the event any approval or consent is required pursuant to any
provision of this Agreement, such approval or consent shall be deemed given only
if it is in writing, executed by the party whose approval or consent is
required.

                                       15
<PAGE>

                  12.14 FURTHER ASSURANCES. In addition to the acts and deeds
recited herein and contemplated to be performed, executed and/or delivered by
Seller to Purchaser at Closing, Seller and Purchaser agree to perform, execute
and/or deliver or cause to be delivered, executed and/or delivered, but without
any obligation to incur any additional liability or expense, on or after the
Closing any and all further acts, deeds and assurances as may be reasonably
necessary to consummate the transactions contemplated hereby and/or to further
perfect and deliver to Purchaser the conveyance, transfer and assignment of the
Property and all rights related thereto.

                  12.15 NO RECORDATION. Neither Seller nor Purchaser shall be
entitled to record this Agreement or a memorandum or other notice hereof among
the land records or other public records of any jurisdiction, and this Section
12.16 shall be deemed to be a specific directive to the recorder of deeds and
other officials of the applicable jurisdiction not to accept this Agreement or a
memorandum or other notice of this Agreement for recordation in any form
whatsoever.

                  12.16 BULK TRANSFER. Purchaser hereby waives compliance by
Seller with all applicable bulk transfer, bulk sales and similar laws and
requirements of all jurisdictions in connection with the transactions
contemplated hereby.

                  EXECUTED by Seller on the ____ day of __________, 2001.

WITNESSES:                          SELLERS:

                                   PINNACLE TOWERS INC.,
--------------------------------   a Delaware corporation

                                   By:
                                       -----------------------------------------
--------------------------------   Name:
                                        ----------------------------------------
                                   Title:
                                          --------------------------------------
with copies to:
                                   Address:
Trey Baldy
Holland & Knight LLP               301 North Cattlemen Road,
400 North Ashley Drive             Suite 300
Suite 2300                         Sarasota, Florida  34232
Tampa, Florida 33602               Attention: James K. Bokish
Telecopy No.: (813) 229-0134

                                       16
<PAGE>

                  EXECUTED by Purchaser on the ___ day of _________, 2001.

WITNESSES:                                           PURCHASER:

---------------------------------      -----------------------------------------
                                       Name: Benn W. Bundy

                                       Address:

--------------------------------
                                       390 Park Street
                                       Suite 500
                                       Beaumont, Texas 77701
                                       Attention: Kerwin B. Stone

Attachments

Receipt and Acknowledgment
Exhibit A  -  Land
Exhibit B  -  Special Warranty Deed
Exhibit C  -  Bill of Sale and Assignment of Leases and Service Contracts
Exhibit D     Tenant Letter Form

                                       17
<PAGE>

                           RECEIPT AND ACKNOWLEDGMENT

                  The undersigned Title Company named in the foregoing Agreement
hereby acknowledges receipt of a fully executed copy of said Agreement as of the
date set forth below and agrees to hold and disburse the Earnest Money Deposit
in accordance with the terms of the Agreement. While the Title Company holds the
Earnest Money Deposit in escrow, the Title Company hereby agrees to invest the
Earnest Money Deposit in an interest-bearing account.

                                       PORT ARTHUR ABSTRACT

                                       By:
                                         ---------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

Date of Receipt:  _______________, 2001

<PAGE>

                                    EXHIBIT A

                                      LAND

                                      A-1

<PAGE>

                                    EXHIBIT B

This instrument was prepared by:

Trey Baldy
Holland & Knight LLP
400 North Ashley Drive
Suite 2300
Tampa, Florida  33602
Telephone:  (813) 227-6520

                              SPECIAL WARRANTY DEED

                  Pinnacle Towers Inc. (hereinafter called "Grantor"), for and
in consideration of the sum of Ten Dollars ($10.00) cash and other good and
valuable considerations to it in hand paid by _____________________ (hereinafter
called "Grantee"), whose address is _____________________________,
_____________, the receipt and sufficiency of which are hereby acknowledged and
confessed, has GRANTED, BARGAINED, SOLD and CONVEYED, and by these presents does
GRANT, BARGAIN, SELL and CONVEY unto Grantee the land described in Exhibit A
attached hereto and made a part hereof for all purposes, together with (i) all
buildings and other improvements located thereon, (ii) all right, title and
estate of Seller in and to all and singular the rights, benefits, privileges,
easements, tenements, hereditaments, and appurtenances thereon or in anywise
appertaining to such real property, and (iii) all right, title, and estate of
Seller in and to the bed of any street, road or alley, open or proposed,
adjoining such real property (collectively, the "Property").

                  TO HAVE AND TO HOLD the Property, together with all and
singular the rights and appurtenances thereto in anywise belonging unto the said
Grantee, its successors and assigns, forever; and Grantor does hereby bind
itself, its successors and assigns, to WARRANT AND FOREVER DEFEND all and
singular the said Property unto the said Grantee, its successors and assigns,
against every person whomsoever lawfully claiming or to claim the same or any
part thereof by, through, or under Grantor, but not otherwise.

                  Notwithstanding anything to the contrary set forth herein,
this conveyance is made subject to the Permitted Exceptions set forth on Exhibit
B attached hereto and made a part hereof.

                  EXECUTED as of the ____ day of ___________, 2001.

Witnesses:                               PINNACLE TOWERS INC.
                                         a Delaware corporation

-------------------------------------
                                         By:
                                             -----------------------------------
-------------------------------------    Name:
                                              ----------------------------------
                                         Title:
                                               ---------------------------------

                                       B-1
<PAGE>

STATE OF _______________________

COUNTY OF _______________________

         The foregoing instrument was acknowledged before me this _____ day of
___________________, 2001, by _______________________, _________________________
of _______________________________, a ________ corporation, on behalf of the
corporation. ____has produced __________________________________ as
identification.

(SEAL)

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

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

Notary Public-State of__________

Commission Number: __________

                                      B-2

<PAGE>

                                    EXHIBIT C

                      BILL OF SALE AND ASSIGNMENT OF LEASES

                              AND SERVICE CONTRACTS

                  That Pinnacle Towers Inc. ("Grantor"), for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and
valuable consideration to it in hand paid by Pinnacle Tower Inc. ("Grantee"),
the receipt and sufficiency of which are hereby acknowledged and confessed, has
GRANTED, SOLD, ASSIGNED, TRANSFERRED, CONVEYED and DELIVERED and does by these
presents GRANT, SELL, ASSIGN, TRANSFER, CONVEY and DELIVER unto Grantee, all of
Grantor's right, title and interest in and to the following described properties
located on, and/or affixed to, and used in connection with, the buildings (the
"Improvements") situated on those certain lands in Beaumont, Texas, more
particularly described on Exhibit "A" attached hereto and made a part hereof for
all purposes (the "Subject Property," which together with the Improvements is
sometimes hereinafter called the "Property"), which Subject Property has been
conveyed by Grantor to Grantee by Special Warranty Deed of even date herewith:

                  (a) All tangible personal property and fixtures of any kind
owned by Grantor and attached to or located within the Improvements and used in
connection with the ownership, maintenance, or operation of the Property (the
"Personalty").

                  (b) All of Grantor's right, title, and interest in any leases,
licenses, occupancy agreements, or other agreements demising space in, providing
for the use of and/or occupancy of the Property (collectively the "Leases").

                  (c) To the extent only the same are assignable by Grantor to
Grantee, all of Grantor's right, title, and interest in and to any and all (i)
contracts or agreements, such as management, maintenance, service or utility
contracts, relating to the ownership, maintenance and operation of the Property
("Service Contracts"), (ii) warranties currently in force and effect with
respect to the Property, the Personalty and the Leases, (iii) all licenses,
permits or similar documents relating to the Property, the Personalty and/or the
Leases, and (iv) plans, drawings, specifications, surveys, engineering reports
and other technical descriptions of the Property (the "Intangible Property").

                  TO HAVE AND TO HOLD the Grantor's rights, titles, and
interests in and to the Personalty, Leases and Intangible Property, unto the
said Grantee, its successors and assigns, forever. Grantor agrees to warrant and
defend title in and to the Personalty, the Leases and the Intangible Property
unto Grantee, its successors and assigns, against all persons claiming the same
by, through or under Grantor, but not otherwise.

                  Except for the title warranty contained in the preceding
paragraph, the Personalty, Leases, and Intangible Property are being conveyed AS
IS, WHERE IS, AND WITHOUT ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR
ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY
OF QUANTITY, QUALITY, CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

                                      C-1
<PAGE>

                  Grantee hereby assumes, and agrees to indemnify and hold
harmless Grantor from and against all obligations of Grantor under the Leases,
Service Contracts, and all other obligations and liabilities pertaining to the
Subject Property and the above described property, which accrue after the date
hereof.

                  This assignment and transfer is made subject to those matters
of record affecting the Property to the extent valid and enforceable.

                  Grantor and Grantee represent that they each have the full
right, power, and authority to execute this Bill of Sale and Assignment of
Leases and Service Contracts and to perform their respective obligations
hereunder.

                  IN WITNESS WHEREOF, Grantor and Grantee have executed this
Bill of Sale and Assignment of Leases and Service Contracts, as of the _____ day
of ________________, 2001.

                                       GRANTOR:

                                       PINNACLE TOWERS INC.,
                                       a Delaware corporation

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       GRANTEE:

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

ATTACHMENTS:

Exhibit A - Property Description

                                      C-2
<PAGE>

                                    EXHIBIT D

                               TENANT LETTER FORM

                                      D-1

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